Consolidated Statements of Inco
Consolidated Statements of Income (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Income Statement | |||||||||||||||||||
Net sales | $15,327 | $15,330 | [1] | $13,790 | [1] | ||||||||||||||
Cost of sales | 6,319 | 6,704 | [1] | 6,043 | [1] | ||||||||||||||
Gross profit | 9,008 | 8,626 | [1] | 7,747 | [1] | ||||||||||||||
Selling, general and administrative expenses | 5,282 | 5,422 | [1] | 4,973 | [1] | ||||||||||||||
Other (income) expense, net | 111 | 103 | [1] | 54 | [1] | ||||||||||||||
Operating profit | 3,615 | 3,101 | [1] | 2,720 | [1] | ||||||||||||||
Interest expense, net | 77 | 96 | [1] | 157 | [1] | ||||||||||||||
Income before income taxes | 3,538 | 3,005 | [1] | 2,563 | [1] | ||||||||||||||
Provision for income taxes | 1,141 | 968 | [1] | 759 | [1] | ||||||||||||||
Net income including noncontrolling interests | 2,397 | 2,037 | [1] | 1,804 | [1] | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 106 | 80 | [1] | 67 | [1] | ||||||||||||||
Net income | $2,291 | $1,957 | [1] | $1,737 | [1] | ||||||||||||||
Earnings per common share, basic | 4.53 | 3.81 | [1] | 3.35 | [1] | ||||||||||||||
Earnings per common share, diluted | 4.37 | 3.66 | [1] | 3.2 | [1] | ||||||||||||||
[1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | |||||||||||||||||||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
| |||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $600 | $555 | [1] | ||||||||||||||||
Receivables (net of allowances of $52 and $47, respectively) | 1,626 | 1,592 | [1] | ||||||||||||||||
Inventories | 1,209 | 1,197 | [1] | ||||||||||||||||
Other current assets | 375 | 366 | [1] | ||||||||||||||||
Total current assets | 3,810 | 3,710 | [1] | ||||||||||||||||
Property, plant and equipment, net | 3,516 | 3,119 | [1] | ||||||||||||||||
Goodwill, net | 2,302 | 2,152 | [1] | ||||||||||||||||
Other intangible assets, net | 821 | 834 | [1] | ||||||||||||||||
Other assets | 685 | 164 | [1] | ||||||||||||||||
Total assets | 11,134 | 9,979 | [1] | ||||||||||||||||
Current Liabilities | |||||||||||||||||||
Notes and loans payable | 35 | 107 | [1] | ||||||||||||||||
Current portion of long-term debt | 326 | 91 | [1] | ||||||||||||||||
Accounts payable | 1,172 | 1,061 | [1] | ||||||||||||||||
Accrued income taxes | 387 | 272 | [1] | ||||||||||||||||
Other accruals | 1,679 | 1,421 | [1] | ||||||||||||||||
Total current liabilities | 3,599 | 2,952 | [1] | ||||||||||||||||
Long-term debt | 2,821 | 3,585 | [1] | ||||||||||||||||
Deferred income taxes | 82 | 82 | [1] | ||||||||||||||||
Other liabilities | 1,375 | 1,316 | [1] | ||||||||||||||||
Total liabilities | 7,877 | 7,935 | [1] | ||||||||||||||||
Total shareholders' equity | |||||||||||||||||||
Preference stock | 169 | 181 | [1] | ||||||||||||||||
Common stock, $1 par value (2,000,000,000 shares authorized, 732,853,180 shares issued) | 733 | 733 | [1] | ||||||||||||||||
Additional paid-in capital | 1,764 | 1,610 | [1] | ||||||||||||||||
Retained earnings | 13,157 | 11,760 | [1] | ||||||||||||||||
Accumulated other comprehensive income (loss) | (2,096) | (2,477) | [1] | ||||||||||||||||
Shareholders' Equity Before Unearned Compensation, Treasury Stock and Noncontrolling Interest | 13,727 | 11,807 | [1] | ||||||||||||||||
Unearned compensation | (133) | (187) | [1] | ||||||||||||||||
Treasury stock, at cost | (10,478) | (9,697) | [1] | ||||||||||||||||
Total Colgate-Palmolive Company shareholders' equity | 3,116 | 1,923 | [1] | ||||||||||||||||
Noncontrolling interests | 141 | 121 | [1] | ||||||||||||||||
Total shareholders' equity | 3,257 | 2,044 | [1] | ||||||||||||||||
Total liabilities and shareholders' equity | $11,134 | $9,979 | [1] | ||||||||||||||||
[1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. |
Parenthetical Information for C
Parenthetical Information for Consolidated Balance Sheets (USD $) | ||
In Millions, except Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Allowance for receivables | $52 | $47 |
Shareholders' Equity [Abstract] | ||
Common stock, par value | 1 | 1 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 732,853,180 | 732,853,180 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (USD $) | |||||||||||||||||||
In Millions | Preference Stock [Member]
| Common Stock [Member]
| Additional Paid-In Capital [Member]
| Unearned Compensation [Member]
| Treasury Stock [Member]
| Retained Earnings [Member]
| Accumulated Other Comprehensive Income (Loss) [Member]
| Noncontrolling Interest [Member]
| Total
| ||||||||||
Balance at Dec. 31, 2006 | $223 | $733 | $1,218 | ($251) | ($8,074) | $9,644 | ($2,081) | $112 | [1] | ||||||||||
Net income | 1,737 | 67 | [1] | 1,804 | [1] | ||||||||||||||
Other comprehensive income: | |||||||||||||||||||
Cumulative translation adjustment | 250 | 7 | [1] | ||||||||||||||||
Retirement Plan and other retiree benefit adjustments, net of taxes | 164 | ||||||||||||||||||
Adjustment to initially apply FIN 48 | (4) | ||||||||||||||||||
Purchase of Noncontrolling interests | (27) | [1] | |||||||||||||||||
Dividends declared: | |||||||||||||||||||
Series B Convertible Preference stock, net of taxes | (28) | ||||||||||||||||||
Common stock | (721) | ||||||||||||||||||
Noncontrolling interests in Company’s subsidiaries | (49) | [1] | |||||||||||||||||
Stock-based compensation expense | 110 | ||||||||||||||||||
Stock options exercised | 175 | 255 | |||||||||||||||||
Treasury stock acquired | (1,269) | ||||||||||||||||||
Preference stock conversion | (25) | (92) | 117 | ||||||||||||||||
Other | 107 | 32 | 67 | ||||||||||||||||
Balance at Dec. 31, 2007 | 198 | 733 | 1,518 | (219) | (8,904) | 10,628 | (1,667) | 110 | [1] | ||||||||||
Net income | 1,957 | 80 | [1] | 2,037 | [1] | ||||||||||||||
Other comprehensive income: | |||||||||||||||||||
Cumulative translation adjustment | (450) | (5) | [1] | ||||||||||||||||
Retirement Plan and other retiree benefit adjustments, net of taxes | (352) | ||||||||||||||||||
Other | (8) | ||||||||||||||||||
Dividends declared: | |||||||||||||||||||
Series B Convertible Preference stock, net of taxes | (28) | ||||||||||||||||||
Common stock | (797) | ||||||||||||||||||
Noncontrolling interests in Company’s subsidiaries | (64) | [1] | |||||||||||||||||
Stock-based compensation expense | 100 | ||||||||||||||||||
Stock options exercised | 61 | 157 | |||||||||||||||||
Treasury stock acquired | (1,073) | ||||||||||||||||||
Preference stock conversion | (17) | (66) | 83 | ||||||||||||||||
Other | (3) | 32 | 40 | ||||||||||||||||
Balance at Dec. 31, 2008 | 181 | 733 | 1,610 | (187) | (9,697) | 11,760 | (2,477) | 121 | [1] | 2,044 | [1] | ||||||||
Net income | 2,291 | 106 | 2,397 | ||||||||||||||||
Other comprehensive income: | |||||||||||||||||||
Cumulative translation adjustment | 346 | 1 | |||||||||||||||||
Retirement Plan and other retiree benefit adjustments, net of taxes | 8 | ||||||||||||||||||
Other | 27 | ||||||||||||||||||
Dividends declared: | |||||||||||||||||||
Series B Convertible Preference stock, net of taxes | (30) | ||||||||||||||||||
Common stock | (864) | ||||||||||||||||||
Noncontrolling interests in Company’s subsidiaries | (87) | ||||||||||||||||||
Stock-based compensation expense | 117 | ||||||||||||||||||
Stock options exercised | 92 | 175 | |||||||||||||||||
Treasury stock acquired | (1,063) | ||||||||||||||||||
Preference stock conversion | (12) | (48) | 60 | ||||||||||||||||
Other | (7) | 54 | 47 | ||||||||||||||||
Balance at Dec. 31, 2009 | $169 | $733 | $1,764 | ($133) | ($10,478) | $13,157 | ($2,096) | $141 | $3,257 | ||||||||||
[1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||||||||||||||||||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Operating Activities | |||||||||||||||||||
Net income | $2,291 | $1,957 | [1] | $1,737 | [1] | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operations: | |||||||||||||||||||
Restructuring, net of cash | (18) | (50) | [1] | 21 | [1] | ||||||||||||||
Depreciation and amortization | 351 | 348 | [1] | 334 | [1] | ||||||||||||||
Gain before tax on sale of non-core product lines | (5) | 0 | [1] | (49) | [1] | ||||||||||||||
Stock-based compensation expense | 117 | 100 | [1] | 110 | [1] | ||||||||||||||
Deferred income taxes | (23) | (6) | [1] | (147) | [1] | ||||||||||||||
Cash effects of changes in: | |||||||||||||||||||
Receivables | 57 | (70) | [1] | (66) | [1] | ||||||||||||||
Inventories | 44 | (135) | [1] | (111) | [1] | ||||||||||||||
Accounts payable and other accruals | 294 | 125 | [1] | 366 | [1] | ||||||||||||||
Other non-current assets and liabilities | 169 | 33 | [1] | 57 | [1] | ||||||||||||||
Net cash provided by operations | 3,277 | 2,302 | [1] | 2,252 | [1] | ||||||||||||||
Investing Activities | |||||||||||||||||||
Capital expenditures | (575) | (684) | [1] | (583) | [1] | ||||||||||||||
Payment for acquisitions, net of cash acquired | 0 | 0 | [1] | (27) | [1] | ||||||||||||||
Sale of property and non-core product lines | (17) | (58) | [1] | (110) | [1] | ||||||||||||||
Sales (purchases) of marketable securities and investments | (289) | 10 | [1] | (11) | [1] | ||||||||||||||
Other | 6 | 3 | [1] | (17) | [1] | ||||||||||||||
Net cash used in investing activities | (841) | (613) | [1] | (528) | [1] | ||||||||||||||
Financing Activities | |||||||||||||||||||
Principal payments on debt | (3,950) | (2,320) | [1] | (1,738) | [1] | ||||||||||||||
Proceeds from issuance of debt | 3,424 | 2,515 | [1] | 1,513 | [1] | ||||||||||||||
Dividends paid | (981) | (889) | [1] | (798) | [1] | ||||||||||||||
Purchases of treasury shares | (1,063) | (1,073) | [1] | (1,269) | [1] | ||||||||||||||
Proceeds from exercise of stock options and excess tax benefits | 300 | 237 | [1] | 489 | [1] | ||||||||||||||
Net cash used in financing activities | (2,270) | (1,530) | [1] | (1,803) | [1] | ||||||||||||||
Effect of exchange rate changes on Cash and cash equivalents | (121) | (33) | [1] | 18 | [1] | ||||||||||||||
Net (decrease) increase in Cash and cash equivalents | 45 | 126 | [1] | (61) | [1] | ||||||||||||||
Cash and cash equivalents at beginning of year | 555 | [1] | 429 | [1] | 490 | [1] | |||||||||||||
Cash and cash equivalents at end of year | 600 | 555 | [1] | 429 | [1] | ||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||||
Income taxes paid | 1,098 | 862 | [1] | 647 | [1] | ||||||||||||||
Interest paid | 98 | 119 | [1] | 163 | [1] | ||||||||||||||
Principal payments on ESOP debt, guaranteed by the Company | $74 | $64 | [1] | $54 | [1] | ||||||||||||||
[1]Prior year amounts have been reclassified to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to Consolidated Financial Statements for additional information. |
1. Nature of Operations
1. Nature of Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Nature of Operations | 1.Nature of Operations The Company manufactures and markets a wide variety of products in the U.S. and around the world in two distinct business segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes and mouth rinses, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches and other similar items. These products are sold primarily to wholesale and retail distributors worldwide. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hills Pet Nutrition. The principal customers for Pet Nutrition products are veterinarians and specialty pet retailers. Principal global and regional trademarks include Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, Elmex, Toms of Maine, Ajax, Axion, Fabuloso, Soupline, Suavitel, Hills Science Diet and Hills Prescription Diet. The Companys principal classes of products accounted for the following percentages of worldwide sales for the past three years: 2009 2008 2007 Oral Care 41 % 41 % 40 % Home Care 23 % 23 % 24 % Personal Care 22 % 22 % 23 % Pet Nutrition 14 % 14 % 13 % Total 100 % 100 % 100 % |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned subsidiaries. Intercompany transactions and balances have been eliminated. The Companys investments in consumer products companies with interests ranging between 20% and 50% are accounted for using the equity method. Net income (loss) from such investments is recorded in Other (income) expense, net in the Consolidated Statements of Income.As of December 31, 2009 and 2008, equity method investments included in Other assets were $15 and $13, respectively. Unrelated third parties hold the remaining ownership interest in these investments.Investments with less than a 20% interest are accounted for using the cost method. To conform to the current year presentation required by the Consolidation Topic of the Financial Accounting Standards Board (FASB) Codification, 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 14. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. As such, the most significant uncertainty in the Companys assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairment, uncertain tax positions, tax valuation allowances and legal and other contingency reserves. Additionally, the Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments and retirement plan assets. 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. Actual results could ultimately differ from those estimates. Revenue Recognition Sales are recorded at the time products are shipped to trade customers and when risk of ownership transfers. Net sales reflect units shipped at selling list prices reduced by sales returns and the cost of current and c |
3. Acquisitions and Divestiture
3. Acquisitions and Divestitures | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures Acquisitions During 2007, the Company increased its ownership interest in one of its subsidiaries in China to 100% at a cost of $27. Divestitures Consistent with the Companys strategy to prioritize higher-margin businesses, the Company sold its household bleach businesses in Latin America, excluding Colombia, in 2007. The transaction included the sale of the bleach brands Agua Jane and Nevex in Uruguay and Venezuela, respectively, and the license of the Ajax brand for bleach during a transition period in the Dominican Republic and Ecuador. The transaction closed in the Latin American countries during the first quarter of 2007 with proceeds of $67, resulting in a pretax gain of $49 ($30 aftertax) included in Other (income) expense, net in 2007.These operations were not material to the Companys annual Net sales, Net income or Earnings per share. |
4. Restructuring and Related Im
4. Restructuring and Related Implementation Charges | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Restructuring and Related Implementation Charges | 4. 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 during the year ended December 31, 2009. The Company incurred total pretax cumulative charges of $1,069 ($776 aftertax) related to the 2004 Restructuring Program. Charges incurred in connection with the implementation of various projects since inception were as follows: Cumulative Charges as of December31, 2008 Termination Benefits $ 426 Incremental Depreciation 222 Asset Impairments 47 Other 374 Total cumulative 2004 Restructuring Program charges, pretax $ 1,069 Other charges primarily consisted of implementation-related charges resulting directly from exit activities and the implementation of new strategies as a result of the 2004 Restructuring Program. These charges included ramp-down costs related to the closure of existing facilities, start-up costs for new facilities and third-party incremental costs related to the development and implementation of new business and strategic initiatives. Since the inception of the 2004 Restructuring Program in December 2004, the Company incurred $46 of charges related to start-up costs for new manufacturing facilities and $137 of costs for the development and implementation of new business and strategic initiatives. The majority of costs incurred since inception related to the following significant projects: the voluntary early retirement program in the U.S.; the closing of the Jeffersonville, Indiana oral care facility; the consolidation of toothpaste production in Europe; exiting certain manufacturing activities in other categories in Portugal, Denmark, Puerto Rico, Senegal and Kansas City, Kansas; and the realignment of sales, administrative and research and development functions in various locations around the world. Total charges related to the 2004 Restructuring Program were as follows: North America (36%), Europe/South Pacific (28%), Latin America (4%), Greater Asia/Africa (10%), Hills Pet Nutrition (1%) and Corporate (21%). For the years ended December 31, 2008 and 2007 restructuring and implementation-related charges were reflected in the income statement as follows: 2008 2007 Cost of sales $ 59 $ 154 Selling, general and administrative expenses 81 49 Other (income) expense, net 24 56 Total 2004 Restructuring Program charges, pretax $ 164 $ 259 Total 2004 Restructuring Program charges, aftertax $ 113 $ 184 Restructuring and implementation-related charges in the preceding table were recorded in the Corporate segment as these decisions were centrally directed and controlled and were not included in internal measures of segment operating performance. The following table summarizes the activity for the restructuring and implementation-related charges discussed above and the related accrual balances: Termination Benefits Incremental Depr |
5. Goodwill and Other Intangibl
5. Goodwill and Other Intangible Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets The net carrying value of Goodwill as of December 31, 2009 and 2008, by segment is as follows: 2009 2008 Oral, Personal and Home Care North America $ 367 $ 350 Latin America 637 531 Europe/South Pacific 1,089 1,064 Greater Asia/Africa 194 192 Total Oral, Personal and Home Care 2,287 2,137 Pet Nutrition 15 15 Total Goodwill $ 2,302 $ 2,152 The change in the amount of Goodwill in each year was primarily due to the impact of foreign currency translation.In addition, in 2007 Goodwill increased $16 due to an increase in the Companys ownership in one of its Chinese subsidiaries. Other intangible assets as of December 31, 2009 and 2008 are comprised of the following: 2009 2008 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trademarks $ 528 $ (205 ) $ 323 $ 436 $ (186 ) $ 250 Other finite life intangible assets 36 (13 ) 23 38 (12 ) 26 Indefinite life intangible assets 475 475 558 558 Total Other intangible assets $ 1,039 $ (218 ) $ 821 $ 1,032 $ (198 ) $ 834 The changes in the net carrying amounts of Other intangible assets during 2009, 2008 and 2007 were partially due to amortization expense of $22, $19 and $18, respectively, as well as the impact of foreign currency translation.In addition, in 2009 $81 was reclassified from Indefinite life intangible assets to Trademarks.In 2007, Other intangible assets increased by $20 due to the acquisition of patents.Annual estimated amortization expense for each of the next five years is expected to be approximately $20. |
6. Long-Term Debt and Credit Fa
6. Long-Term Debt and Credit Facilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Long-Term Debt and Credit Facilities | 6. Long-Term Debt and Credit Facilities Long-term debt consists of the following at December 31: Weighted Average Interest Rate Maturities 2009 2008 Notes 3.4% 2010-2078 $ 2,536 $ 2,259 Payable to banks 1.8% 2010-2013 611 601 ESOP notes, guaranteed by the Company 8.8% 2009 74 Commercial paper 0.1% 2009 735 Capitalized leases 7 3,147 3,676 Less: Current portion of long-term debt 326 91 Total $ 2,821 $ 3,585 The weighted-average interest rate on short-term borrowings included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2009 and 2008 was 0.7% and 4.9%, respectively. Scheduled maturities of long-term debt outstanding as of December 31, 2009, are as follows: Years Ended December 31, 2010 $ 326 2011 639 2012 341 2013 262 2014 358 Thereafter 1,221 The Company has entered into interest rate swap agreements and foreign exchange contracts related to certain of these debt instruments (see Note 7). During the third quarter of 2009, the Company issued $300 of U.S. dollar-denominated six-year notes at a fixed rate of 3.15% under the Companys shelf registration statement.Proceeds from the debt issuance were primarily used to reduce commercial paper borrowings.At December 31, 2009 the Company had access to unused domestic and foreign lines of credit of $3,014 and could also issue medium-term notes pursuant to an effective shelf registration statement. In August 2008, the Company increased the borrowing capacity under its domestic revolving credit facility from $1,500 to $1,600 by adding two banks to the syndicate of banks participating in the revolving credit facility.The facility has an expiration date of November 2012. During 2008, the Company issued $250 of five-year notes at a fixed rate of 4.2% under the Companys shelf registration statement.During 2008, the Company also issued approximately $75 of U.S. dollar-denominated forty-year notes at a variable rate, also under the shelf registration statement.Proceeds from the debt issuances were used to repay $100 of medium-term notes with an original maturity of May 2017 and to reduce commercial paper borrowings. Certain of the facilities with respect to the Companys bank borrowings contain cross-default provisions. Non-compliance with these requirements could ultimately result in the acceleration of amounts owed. The Company is in full compliance with all such requirements and believes the likelihood of non-compliance is remote. |
7. Fair Value Measurements
7. Fair Value Measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Fair Value Measurements and Financial Instruments | 7. Fair Value Measurements 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 losses 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. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Based upon quoted market prices in active markets for identical assets or liabilities. Level 2: Based upon observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Based upon unobservable inputs reflecting the reporting entitys own assumptions. Financial Instruments At December 31, 2009 and 2008, marketable securities of $41 and $12, respectively, were included within Other current assets in the Consolidated Balance Sheets and consisted of bank deposits with original maturities greater than 90 days (Level 1 valuation).The carrying amount of cash and cash equivalents, accounts receivable and short-term debt approximated fair value as of December 31, 2009. The estimated fair value of the Companys long-term debt, including the current portion, as of December 31, 2009 and 2008, was $3,362 and $3,991, respectively, and the related carrying value was $3,147 and $3,676, respectively.The estimated fair value of long-term debt was derived principally from quoted prices on the Companys outstanding fixed-term notes (Level 2 valuation). During the second half of 2009, the Company purchased $210 of U.S. dollar-denominated bonds issued by a Venezuelan state-owned corporation withstated maturities ranging from two to seven years and $50 of U.S. dollar-linked, devaluation-protected bonds issued by the Venezuelan government with stated maturities ranging from six to eight years. Each investment is classified as available-for-sale and included within Other assets in the Consolidated Balance Sheet. These investments are considered Level 1 as they have quoted prices on an active exchange with daily liquidity. As of December 31, 2009, the $15 difference between the fair value of these investments and their initial carrying value was recorded as an unrealized gain in Other comprehensive income. 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 fore |
8. Capital Stock and Stock-Base
8. Capital Stock and Stock-Based Compensation Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Capital Stock and Stock-Based Compensation Plans | 8. Capital Stock and Stock-Based Compensation Plans Preference Stock The Company has the authority to issue 50,000,000 shares of Preference stock.In 1989, the Company approved the issuance of 6,315,149 shares of Series B Convertible Preference stock (the Preference stock) without par value. Each share of Preference stock, which is convertible into eight shares of common stock, has a redemption price of $65 per share and pays cumulative dividends equal to the higher of $2.44 or the current dividend paid on eight common shares for the comparable six-month period. As of December 31, 2009 and 2008, there were 2,607,541 and 2,784,175 shares of Preference stock, respectively, outstanding and issued to the Companys Employee Stock Ownership Plan. See Note 9 for further information about the Companys Employee Stock Ownership Plan. Stock Repurchases The Company repurchased stock at a cost of $1,063 during 2009. In 2009, the Company repurchased its common stock under a share repurchase program that was approved by the Board of Directors in January 2008 (the 2008 Program). Under the 2008 Program, the Company was authorized to purchase up to 30 million shares of the Companys common stock. On February 4, 2010, the Companys Board of Directors authorized a new share repurchase program (the 2010 Program) effective as of that date.The 2010 Program authorizes the repurchase of up to 40 million shares of the Companys common stock.The Boards authorization also provides for share repurchases on an on-going basis to fulfill certain requirements of the Companys compensation and benefit programs. The shares will be repurchased from time to time in open market transactions or privately negotiated transactions at the Companys discretion, subject to market conditions, customary blackout periods and other factors. The Company may use either authorized and unissued shares or treasury shares to meet share requirements resulting from the exercise of stock options and vesting of restricted stock awards. A summary of common stock and treasury stock activity for the three years ended December 31, 2009 is as follows: Common Stock Treasury Stock Balance, January 1, 2007 512,658,587 220,194,593 Common stock acquired (18,062,892 ) 18,062,892 Shares issued for stock options 10,051,559 (10,051,559 ) Shares issued for restricted stock and other 1,275,715 (1,275,715 ) Preference stock conversion 3,111,832 (3,111,832 ) Balance, December 31, 2007 509,034,801 223,818,379 Common stock acquired (14,731,316 ) 14,731,316 Shares issued for stock options 4,280,505 (4,280,505 ) Shares issued for restricted stock and other 799,926 (799,926 ) Preference stock conversion 2,028,664 (2,028,664 ) Balance, December 31, 2008 501,412,580 231,440,600 Common stock acquired (14,916,340 ) 14,916,340 Shares issued for stock options 5,455,317 (5,455,317 ) Shares issued for restricted stock and other 800,388 ( 800,388 ) Preference sto |
9. Employee Stock Ownership Pla
9. Employee Stock Ownership Plan | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Employee Stock Ownership Plan | 9. Employee Stock Ownership Plan In 1989, the Company expanded its Employee Stock Ownership Plan (ESOP) through the introduction of a leveraged ESOP that funds certain benefits for employees who have met eligibility requirements. The ESOP issued $410 of long-term notes due through July 2009 bearing an average interest rate of 8.7%. The notes, which were guaranteed by the Company, were repaid in July 2009. The ESOP used the proceeds of the notes to purchase 6.3 million shares of Preference stock from the Company. The Preference stock, each share of which is convertible into eight shares of common stock, has a redemption price of $65 per share and pays semiannual dividends equal to the higher of $2.44 or the current dividend paid on eight common shares for the comparable six-month period. During 2000, the ESOP entered into a loan agreement with the Company under which the benefits of the ESOP may be extended through 2035. Dividends on the Preference stock, as well as on the common stock also held by the ESOP, are paid to the ESOP trust and, together with cash contributions and advances from the Company, are used by the ESOP to repay principal and interest. Preference stock is released for allocation to participants based upon the ratio of the current years debt service to the sum of total principal and interest payments over the life of the debt. As of December 31, 2009, 1,305,666 shares were released and allocated to participant accounts and 1,301,875 shares were available for future allocation. Dividends on the Preference stock are deductible for income tax purposes and, accordingly, are reflected net of their tax benefit in the Consolidated Statements of Changes in Shareholders Equity. Annual expense related to the leveraged ESOP, determined as interest incurred on the original notes, plus the higher of either principal payments or the historical cost of Preference stock allocated, less dividends received on the shares held by the ESOP and advances from the Company, was $22 in 2009, $7 in 2008 and $12in 2007. Unearned compensation, which is shown as a reduction in Shareholders equity, represents the amount of ESOP debt due to the Company reduced by the difference between the cumulative cost of Preference stock allocated and the cumulative principal payments. Interest incurred on the ESOPs notes was $2 in 2009, $8 in 2008 and $13 in 2007. The Company paid dividends on the shares held by the ESOP of $37 in 2009, $36 in 2008 and $36 in 2007. Company contributions to the ESOP were $22 in 2009, $7 in 2008 and $12 in 2007. |
10. Retirement Plans and Other
10. Retirement Plans and Other Retiree Benefits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Retirement Plans and Other Retiree Benefits | 10. Retirement Plans and Other Retiree Benefits Retirement Plans The Company and certain of its U.S. and overseas subsidiaries maintain defined benefit retirement plans. Benefits are based primarily on years of service and employees career earnings. In the Companys principal U.S. plans and certain funded overseas plans, funds are contributed to trusts in accordance with regulatory limits to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The target asset allocation for the Companys defined benefit plans are as follows: United States International Asset Category Equity securities 63 % 43 % Debt securities 33 50 Real estate and other 4 7 Total 100 % 100 % At December 31, 2009 the allocation of the Companys plan assets and the level of valuation input for each major asset category, was as follows: Level of Pension Plans Other Retiree ValuationInput United States International Benefits Investments: Cash cash equivalents Level 1 $ 84 $ 21 $ 2 U.S. common stocks Level 1 220 6 International common stocks Level 1 48 2 Fixed income securities (a) Level 2 144 Common/collective trust funds (b): Level 2 Equity index funds 351 135 9 Emerging market equity index funds 52 14 1 Other common stock funds 88 21 2 Fixed income funds: U.S. or foreign government and agency securities 157 24 4 Fixed income funds: investment grade corporate bonds 52 120 1 Fixed income funds: high yield corporate bonds and other 56 10 1 Guaranteed investment contracts (c) Level 2 45 Real estate(d) Level 3 48 11 Total Investments at fair value $ 1,300 $ 401 $ 28 (a) The fixed income securities are traded over the counter and a small portion of the securities lack daily pricing or liquidity and as such are classified as level 2.Approximately 75% of the fixed income portfolio is invested in U.S. treasury or agency securities, with the remainder invested in corporate bonds. (b) Interests in common/collective trust funds are valued using the net asset value (NAV) per unit in each fund.The NAV is based on the value of the underlying investments owned by each trust, minus its liabilities, divided by the number of shares outstanding. (c) The guaranteed investment contracts (GICs) represent contracts with insurance companies measured at the cash surrender value of each contract.The level 2 valuation reflects that the cash surrender value is based principally on a referenced pool of investment funds with active redemption. (d) Real estate is valued using the NAV per unit of funds that are invested in real property, and the real property is valued using independent market appraisals.Since the appraisals include unobservable inputs the investm |
11. Income Taxes
11. Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Income Taxes | 11. Income Taxes The components of income before income taxes are as follows for the three years ended December 31: 2009 2008 2007 United States $ 1,173 $ 1,027 $ 802 International 2,365 1,978 1,761 Total Income before income taxes $ 3,538 $ 3,005 $ 2,563 The provision for income taxes consists of the following for the three years ended December 31: 2009 2008 2007 United States $ 399 $ 314 $ 274 International 742 654 485 Total Provision for income taxes $ 1,141 $ 968 $ 759 Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows: 2009 2008 2007 Goodwill and intangible assets $ 15 $ (10 ) $ (34 ) Property, plant and equipment (24 ) (29 ) 15 Pension and other retiree benefits 27 (46 ) 10 Stock-based compensation 18 18 6 Tax loss and tax credit carryforwards (27 ) (30 ) (14 ) Valuation allowances 3 6 112 Other, net 7 (5 ) 31 Total $ 19 $ (96 ) $ 126 The difference between the statutory U.S. federal income tax rate and the Companys global effective tax rate as reflected in the Consolidated Statements of Income is as follows: Percentage of Income before income taxes 2009 2008 2007 Tax at United States statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.5 0.8 0.9 Earnings taxed at other than United States statutory rate (2.5 ) (1.9 ) (0.6 ) Reduction of valuation allowances (4.5 ) Other, net (0.8 ) (1.7 ) (1.2 ) Effective tax rate 32.2 % 32.2 % 29.6 % The 2007 change in valuation allowances resulted from managements assessment of the Companys ability to utilize certain operating loss and tax carryforwards prior to expiration. The components of deferred tax assets (liabilities) are as follows at December 31: 2009 2008 Deferred tax liabilities: Goodwill and intangible assets $ (440 ) $ (418 ) Property, plant and equipment (320 ) (278 ) Other (157 ) (112 ) (917 ) (808 ) Deferred tax assets: Pension and other retiree benefits 389 364 Tax loss and tax credit carryforwards 153 141 Accrued liabilities 134 92 Stock-based compensation 103 80 Other 163 151 Valuation allowance (2 ) (5 ) 940 823 Net deferred income taxes $ 23 $ 15 Deferred taxes included within: Assets: Other current assets $ 105 $ 97 Liabilities: Deferred income taxes (82 ) (82 ) Net deferred income taxes $ 23 $ 15 Applicable U.S. income a |
12. Earnings Per Share
12. Earnings Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Earnings Per Share | 12. Earnings Per Share For the Year Ended 2009 For the Year Ended 2008 For the Year Ended 2007 Income Shares (millions) Per Share Income Shares (millions) Per Share Income Shares (millions) Per Share Net income $ 2,291 $ 1,957 $ 1,737 Preferred dividends (30 ) (28 ) (28 ) Basic EPS 2,261 499.5 $ 4.53 1,929 506.3 $ 3.81 1,709 510.8 $ 3.35 Stock options and restricted stock 3.8 5.8 7.6 Convertible Preference stock 30 21.3 28 22.9 28 25.3 Diluted EPS $ 2,291 524.6 $ 4.37 $ 1,957 535.0 $ 3.66 $ 1,737 543.7 $ 3.20 Basicearnings per common share is computed by dividing net income available for common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and restricted stock awards. As of December 31, 2009, 2008 and 2007, the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 5,794,326, 1,367,200 and 2,358, respectively. |
13. Commitments and Contingenci
13. Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Contingencies | 13. Commitments and Contingencies Minimum rental commitments under noncancellable operating leases, primarily for office and warehouse facilities, are $185 in 2010, $158 in 2011, $140 in 2012, $121 in 2013, $109 in 2014 and $570 thereafter. Rental expense amounted to $212 in 2009, $183 in 2008 and $157 in 2007. Capital leases included in fixed assets, contingent rentals and sublease income are not significant. The Company has various contractual commitments to purchase raw, packaging and other materials totaling approximately $551 at December 31, 2009. 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.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 $165, 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 $604, 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 |
14. Segment Information
14. Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Segment Information | 14. 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 segment are managed geographically in four reportable operating segments:North America, Latin America, Europe/South Pacific and Greater Asia/Africa.Management 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. The accounting policies of the operating segments are generally the same as those described in Note 2 to the Consolidated Financial Statements.Intercompany sales have been eliminated.Corporate operations include stock-based compensation related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation 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. To conform to the current year presentation required by the Consolidation Topic of the FASB Codification, the amounts of Net income attributable to noncontrolling interests in less-than-wholly owned subsidiaries of $80 and $67 for the years ended December 31, 2008 and December 31, 2007, respectively, which were previously deducted from Greater Asia/Africa Operating profit, have been reclassified to a new line below Operating profit. Net sales 2009 2008 2007 Oral, Personal and Home Care North America(1) $ 2,950 $ 2,852 $ 2,721 Latin America 4,319 4,088 3,489 Europe/South Pacific 3,271 3,582 3,383 Greater Asia/Africa 2,655 2,660 2,338 Total Oral, Personal and Home Care 13,195 13,182 11,931 Pet Nutrition(2) 2,132 2,148 1,859 Total Net sales $ 15,327 $ 15,330 $ 13,790 ____________ (1) Net sales in the U.S. for Oral, Personal and Home Care were $2,577, $2,490 and $2,363 in 2009, 2008 and 2007, respectively. (2) Net sales in the U.S. for Pet Nutrition were $1,071, $1,082 and $959 in 2009, 2008 and 2007, respectively. Operating profit 2009 2008 2007 Oral, Personal and Home Care North America $ 843 $ 689 $ 667 Latin America 1,360 1,181 1,006 Europe/South Pacific 748 746 764 Greater Asia/Africa 631 527 430 Total Oral, Personal and Home Care 3,582 3,143 2,867 Pet Nutrition 555 542 487 Corporate (522 ) (584 ) (634 ) Total Operating profit $ 3,615 $ 3,101 $ 2,720 Capital expenditures 2009 200 |
15. Supplemental Income Stateme
15. Supplemental Income Statement Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Supplemental Income Statement Information | 15. Supplemental Income Statement Information Other (income) expense, net 2009 2008 2007 Amortization of intangible assets $ 22 $ 19 $ 18 Legal and environmental matters 27 23 Remeasurement of certain liabilities in Venezuela 27 Asset impairments 16 Equity (income) (5 ) (4 ) (4 ) 2004 Restructuring Program 24 56 Investment losses (income) 25 (2 ) Gain on sales of non-core product lines, net (49 ) Pension settlement charges 15 Hills limited voluntary recall 13 Other, net 24 16 7 Total Other (income) expense, net $ 111 $ 103 $ 54 Interest expense, net 2009 2008 2007 Interest incurred $ 102 $ 115 $ 173 Interest capitalized (14 ) (9 ) (6 ) Interest income (11 ) (10 ) (10 ) Total Interest expense, net $ 77 $ 96 $ 157 2009 2008 2007 Research and development $ 269 $ 253 $ 247 Advertising $ 1,534 $ 1,650 $ 1,546 |
16. Supplemental Balance Sheet
16. Supplemental Balance Sheet Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | 16. Supplemental Balance Sheet Information Inventories 2009 2008 Raw materials and supplies $ 310 $ 297 Work-in-process 50 41 Finished goods 849 859 Total Inventories $ 1,209 $ 1,197 Inventories valued under LIFO amounted to $255 and $244 at December 31, 2009 and 2008, respectively. The excess of current cost over LIFO cost at the end of each year was $55 and $54, respectively. The liquidations of LIFO inventory quantities had no material effect on income in 2009, 2008 and 2007. Property, plant and equipment, net 2009 2008 Land $ 156 $ 151 Buildings 1,077 1,028 Manufacturing machinery and equipment 4,481 3,884 Other equipment 986 874 6,700 5,937 Accumulated depreciation (3,184 ) (2,818 ) Total Property, plant and equipment, net $ 3,516 $ 3,119 Other accruals 2009 2008 Accrued advertising $ 538 $ 457 Accrued payroll and employee benefits 370 317 Accrued taxes other than income taxes 101 60 Restructuring accrual 15 33 Pension and other retiree benefits 61 56 Accrued interest 24 23 Derivatives 9 72 Other 561 403 Total Other accruals $ 1,679 $ 1,421 Other liabilities 2009 2008 Pension and other retiree benefits $ 1,226 $ 1,187 Other 149 129 Total Other liabilities $ 1,375 $ 1,316 Accumulated Other Comprehensive Income Accumulated other comprehensive income is comprised of cumulative foreign currency translation gains and losses, unrecognized pension and other retiree benefit costs, unrealized gains and losses from derivative instruments designated as cash flow hedges and unrealized gains/losses on available for sale securities. At December 31, 2009 and 2008, Accumulated other comprehensive income consisted primarily of aftertax unrecognized pension and other retiree benefit costs of $657 and $665, respectively, and cumulative foreign currency translation adjustments of $1,453 and $1,799, respectively. Foreign currency translation adjustments in 2009 primarily reflect gains due to the strengthening of the Brazilian real and Swiss franc, while losses in 2008 were largely due to the weakening of the Brazilian real, Mexican peso and Euro. |
17. Quarterly Financial Data
17. Quarterly Financial Data (Unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Quarterly Financial Data | 17. Quarterly Financial Data (Unaudited) Total First Quarter Second Quarter Third Quarter Fourth Quarter 2009 Net sales $ 15,327 $ 3,503 $ 3,745 $ 3,998 $ 4,081 Gross profit 9,008 2,013 2,201 2,367 2,427 Net income 2,291 508 562 590 631 Earnings per common share: Basic 4.53 1.00 1.11 1.17 1.25 Diluted 4.37 0.97 1.07 1.12 1.21 2008 Net sales $ 15,330 $ 3,713 $ 3,965 $ 3,988 $ 3,664 Gross profit 8,626 2,100 2,240 2,236 2,050 Net income 1,957 466 (1) 494 (2) 500 (3) 497 (4) Earnings per common share: Basic 3.81 0.90 0.96 0.98 0.97 Diluted 3.66 0.86 (1) 0.92 (2) 0.94 (3) 0.94 (4) ____________ Note: Basic and diluted earnings per share are computed independently for each quarter presented. Accordingly, the sum of the quarterly earnings per share may not agree with the calculated full year earnings per share. (1) Net income and diluted earnings per share for the first quarter of 2008 were reduced by an aftertax charge of $21 and $0.04, respectively, reflecting charges related to the 2004 Restructuring Program. (2) Net income and diluted earnings per share for the second quarter of 2008 were reduced by an aftertax charge of $30 and $0.06, respectively, reflecting charges related to the 2004 Restructuring Program. (3) Net income and diluted earnings per share for the third quarter of 2008 were reduced by an aftertax charge of $31 and $0.05, respectively, reflecting charges related to the 2004 Restructuring Program. (4) Net income and diluted earnings per share for the fourth quarter of 2008 were reduced by an aftertax charge of $31 and $0.06, respectively, reflecting charges related to the 2004 Restructuring Program. |
18. Subsequent Events - Venezue
18. Subsequent Events - Venezuela | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
Subsequent Events | 18.Subsequent Events - Venezuela Effective January 1, 2010, Venezuela has been designated as hyper-inflationary and therefore CP Venezuelas functional currency will be the U.S. dollar.As a result, the impact of all future Venezuelan currency fluctuations will be reported in income.Changing the reporting currency from the Venezuelan bolivar to the U.S. dollar resulted in a one-time charge of approximately $275, recorded as a Cumulative translation adjustment in Other comprehensive income (loss) on January 1, 2010.This charge primarily represents the premium paid to acquire U.S. dollar-denominated cash and bonds at the parallel market rate.Previously these assets had been remeasured at the parallel market rate and then translated for financial reporting purposes at the official rate of 2.15. On January 8, 2010, the Venezuelan government announced its decision to devalue its currency and implement a two-tier exchange rate structure.As a result, the official exchange rate changed from 2.15 to 2.60 for essential goods and 4.30 for non-essential goods.While we currently believe that many of our products may receive the 2.60 rate of exchange, we will remeasure the financial statements of our Venezuelan subsidiary for 2010 and future periods at the rate at which we expect to remit dividends, which currently is 4.30.As the local currency operations in Venezuela will now translate into fewer U.S. dollars, this will have an ongoing adverse effect on our reported results. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | COLGATE-PALMOLIVE COMPANY SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Dollars in Millions) Column A Column B Column C Column D Column E Additions Balance at Beginning of Period Charged to Costs and Expenses Other Deductions Balance at End of Period Year Ended December 31, 2009 Allowance for doubtful accounts and estimated returns $ 47 $ 9 $ $ 4 $ 52 Valuation allowance for deferred tax assets $ 5 $ $ $ 3 (1) $ 2 Year Ended December 31, 2008 Allowance for doubtful accounts and estimated returns $ 51 $ 6 $ $ 10 $ 47 Valuation allowance for deferred tax assets $ 11 $ 3 $ $ 9 (1) $ 5 Year Ended December 31, 2007 Allowance for doubtful accounts and estimated returns $ 46 $ 7 $ $ 2 $ 51 Valuation allowance for deferred tax assets $ 125 $ 6 $ $ 120 (2) $ 11 ____________ (1) Decrease in allowance due to utilization of tax loss and tax credit carryforwards. (2) Decrease is primarily a result of the reduction of a tax loss carryforward valuation allowance in Brazil of $95 and the utilization of tax loss and tax credit carryforwards. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Document Period End Date | 2009-12-31 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Dec. 31, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | COLGATE PALMOLIVE CO | ||
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 | $35,200,000,000 | ||
Entity Common Stock Shares Outstanding | 493,747,179 |