| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | |||||||||||||||||||
| In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |||||||||||||||||
| Income Statement | |||||||||||||||||||
| Net sales | $3,829 | $3,503 | |||||||||||||||||
| Cost of sales | 1,561 | 1,490 | |||||||||||||||||
| Gross profit | 2,268 | 2,013 | |||||||||||||||||
| Selling, general and administrative expenses | 1,355 | 1,186 | |||||||||||||||||
| Other (income) expense, net | 235 | 16 | |||||||||||||||||
| Operating profit | 678 | 811 | |||||||||||||||||
| Interest expense, net | 16 | 21 | |||||||||||||||||
| Income before income taxes | 662 | 790 | |||||||||||||||||
| Provision for income taxes | 275 | 254 | |||||||||||||||||
| Net income including noncontrolling interests | 387 | 536 | |||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 30 | 28 | |||||||||||||||||
| Net income attributable to Colgate-Palmolive Company | $357 | $508 | |||||||||||||||||
| Earnings per common share, basic | 0.71 | $1 | |||||||||||||||||
| Earnings per common share, diluted | 0.69 | 0.97 | |||||||||||||||||
| Dividends declared per common share | 0.97 | [1] | 0.84 | [1] | |||||||||||||||
| [1]Two dividends were declared in each period | |||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | ||
| In Millions | Mar. 31, 2010
| Dec. 31, 2009
|
| Current Assets | ||
| Cash and cash equivalents | $561 | $600 |
| Receivables (net of allowances of $51 and $52, respectively) | 1,709 | 1,626 |
| Inventories | 1,259 | 1,209 |
| Other current assets | 402 | 375 |
| Total current assets | 3,931 | 3,810 |
| Property, plant and equipment: | ||
| Cost | 6,699 | 6,700 |
| Less: Accumulated depreciation | (3,233) | (3,184) |
| Property, plant and equipment, net | 3,466 | 3,516 |
| Goodwill, net | 2,257 | 2,302 |
| Other intangible assets, net | 808 | 821 |
| Other assets | 361 | 685 |
| Total assets | 10,823 | 11,134 |
| Current Liabilities | ||
| Notes and loans payable | 42 | 35 |
| Current portion of long-term debt | 320 | 326 |
| Accounts payable | 1,129 | 1,172 |
| Accrued income taxes | 410 | 387 |
| Other accruals | 1,917 | 1,679 |
| Total current liabilities | 3,818 | 3,599 |
| Long-term debt | 2,755 | 2,821 |
| Deferred income taxes | 124 | 82 |
| Other liabilities | 1,362 | 1,375 |
| Shareholders' Equity | ||
| Preference stock | 165 | 169 |
| Common stock | 733 | 733 |
| Additional paid-in capital | 1,784 | 1,764 |
| Retained earnings | 13,032 | 13,157 |
| Accumulated other comprehensive income (loss) | (2,131) | (2,096) |
| Shareholders' Equity Before Unearned Compensation, Treasury Stock and Noncontrolling Interest | 13,583 | 13,727 |
| Unearned compensation | (112) | (133) |
| Treasury stock, at cost | (10,876) | (10,478) |
| Total Colgate-Palmolive Company shareholders' equity | 2,595 | 3,116 |
| Noncontrolling interests | 169 | 141 |
| Total shareholders' equity | 2,764 | 3,257 |
| Total liabilities and shareholders' equity | $10,823 | $11,134 |
| PARENTHETICAL INFORMATION FOR CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Millions | Mar. 31, 2010
| Dec. 31, 2009
|
| Current Assets | ||
| Allowance for receivables | $51 | $52 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | ||
| In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Operating Activities | ||
| Net income including noncontrolling interests | $387 | $536 |
| Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | ||
| Venezuela hyperinflationary transition charge | 271 | 0 |
| Restructuring, net of cash | 0 | (7) |
| Depreciation and amortization | 92 | 82 |
| Stock-based compensation expense | 41 | 39 |
| Deferred income taxes | 34 | 54 |
| Cash effects of changes in: | ||
| Receivables | (99) | (15) |
| Inventories | (56) | (34) |
| Accounts payable and other accruals | 27 | 3 |
| Other non-current assets and liabilities | 36 | 32 |
| Net cash provided by operations | 733 | 690 |
| Investing Activities | ||
| Capital expenditures | (81) | (73) |
| Sale of property and non-core product lines | 1 | 4 |
| Sales (purchases) of marketable securities and investments | (7) | (13) |
| Net cash used in investing activities | (87) | (82) |
| Financing Activities | ||
| Principal payments on debt | (1,154) | (771) |
| Proceeds from issuance of debt | 1,116 | 711 |
| Dividends paid | (222) | (203) |
| Purchases of treasury shares | (505) | (202) |
| Proceeds from exercise of stock options and excess tax benefits | 88 | 10 |
| Net cash used in financing activities | (677) | (455) |
| Effect of exchange rate changes on Cash and cash equivalents | (8) | (6) |
| Net increase (decrease) in Cash and cash equivalents | (39) | 147 |
| Cash and cash equivalents at beginning of period | 600 | 555 |
| Cash and cash equivalents at end of period | 561 | 702 |
| Supplemental Cash Flow Information | ||
| Income taxes paid | $216 | $102 |
| Basis of Presentation | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Basis of Presentation | 1. 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. For a complete set of financial notes including the significant accounting policies of Colgate-Palmolive Company (together with its subsidiaries, the Company or Colgate), refer to the Companys Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission. |
| Use of Estimates | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Use of Estimates | 2. 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. |
| Inventories | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Inventories | 3. Inventories Inventories by major class are as follows: March31, 2010 December31, 2009 Raw materials and supplies $ 301 $ 310 Work-in-process 52 50 Finished goods 906 849 Total Inventories $ 1,259 $ 1,209 |
| Shareholders' Equity | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Shareholders' Equity | 4. Shareholders Equity Major changes in the components of Shareholders Equity since the beginning of 2010 are as follows: Colgate-Palmolive Company Shareholders Equity Noncontrolling Interests Preference Stock Common Stock Additional Paid-in Capital Unearned Compensation Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2009 $ 169 $ 733 $ 1,764 $ (133 ) $ (10,478 ) $ 13,157 $ (2,096 ) $ 141 Net income 357 30 Other comprehensive income (35 ) Dividends declared: Series B Convertible Preference stock, net of taxes (8 ) Common stock (474 ) Noncontrolling interests in Companys subsidiaries (2 ) Stock-based compensation expense 41 Shares issued for stock options 19 60 Treasury stock acquired (505 ) Preference stock conversion (4 ) (21 ) 25 Other (19 ) 21 22 Balance, March 31, 2010 $ 165 $ 733 $ 1,784 $ (112 ) $ (10,876 ) $ 13,032 $ (2,131 ) $ 169 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. The following are components of comprehensive income: Three Months Ended March 31, 2010 March 31, 2009 Colgate-Palmolive Company Noncontrolling interests Total Colgate-Palmolive Company Noncontrolling interests Total Net income $ 357 $ 30 $ 387 $ 508 $ 28 $ 536 Other comprehensive income (loss), net of tax: Cumulative translation adjustment (33 ) (33 ) (112 ) (2 ) (114 ) Retirement Plan and other retiree benefit adjustments 11 11 11 11 Gains (losses) on cash flow hedges (2 ) (2 ) 12 12 Other (11 ) (11 ) Total Other comprehensive income (loss), net of tax $ (35 ) $ $ (35 ) $ (89 ) $ (2 ) $ (91 ) Comprehensive income $ 322 $ 30 $ 352 $ 419 $ 26 $ 445 |
| Earnings Per Share | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Earnings Per Share | 5. Earnings Per Share Three Months Ended March 31, 2010 March 31, 2009 Income Shares (millions) Per Share Income Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company $ 357 $ 508 Preferred dividends (8 ) (8 ) Basic EPS 349 493.7 $ 0.71 500 500.7 $ 1.00 Stock options and restricted stock 4.8 3.6 Convertible preference stock 8 20.5 8 21.9 Diluted EPS $ 357 519.0 $ 0.69 $ 508 526.2 $ 0.97 |
| Retirement Plans and Other Retiree Benefits | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Retirement Plans and Other Retiree Benefits | 6.Retirement Plans and Other Retiree Benefits Components of net periodic benefit cost for three months ended March 31, 2010 and 2009 were as follows: Pension Benefits Other Retiree Benefits United States International Three Months Ended March 31, 2010 2009 2010 2009 2010 2009 Service cost $ 12 $ 11 $ 5 $ 4 $ 3 $ 3 Interest cost 24 24 9 8 10 9 Annual ESOP allocation (2 ) (2 ) Expected return on plan assets (25 ) (23 ) (6 ) (5 ) (1 ) Amortization of transition and prior service costs (credits) 1 1 Amortization of actuarial loss 11 12 1 1 3 3 Net periodic benefit cost $ 23 $ 25 $ 9 $ 8 $ 13 $ 13 |
| Contingencies | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Contingencies | 7. 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. 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. Brazilian Matters In 2001, the Central Bank of Brazil sought to impose a substantial fine on the Companys Brazilian subsidiary (approximately $147 at the current exchange rate) based on alleged foreign exchange violations in connection with the financing of the Companys 1995 acquisition of the Kolynos oral care business from Wyeth (formerly American Home Products) (the Seller), as described in the Companys Form 8-K dated January 10, 1995. The Company appealed the imposition of the fine to the Brazilian Monetary System Appeals Council (the Council), and on January 30, 2007, the Council decided the appeal in the Companys favor, dismissing the fine entirely. However, certain tax and civil proceedings that began as a result of this Central Bank matter are still outstanding as described below. The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Companys Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, at the current exchange rate, approximate $113. The Company has been disputing the disallowances by appealing the assessments within the internal revenue authoritys appellate process with the following results to date: In June 2005, the First Board of Taxpayers ruled in the Companys favor and allowed all of the previously claimed deductions for 1996 through 1998. In March 2007, the First Board of Taxpayers ruled in the Companys favor and allowed all of the previously claimed deductions for 1999 through 2001. The tax authorities appealed these decisions to the next administrative level. In August 2009, the First Taxpayers Council (the next and final administrative level of appeal) overruled the decisions of the First Board of Taxpayers, upholding the majority of the assessments, disallowing a portion of the assessments and remanding a portion of the assessments for further consideration by the First Board of Taxpayers. The Company has filed a motion for reconsideration with the First Taxpayers Council and further appeals are available within the Brazilian fe |
| Segment Information | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Segment Information | 8. 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 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.In 2010, Corporate Operating profit also includes the one-time $271 charge of transitioning to hyperinflationary accounting in Venezuela as of January 1, 2010.For further information regarding Venezuela, refer to Note 10. Net sales and Operating profit by segment were as follows: ThreeMonthsEnded March 31, 2010 2009 Net sales Oral, Personal and Home Care North America $ 753 $ 730 Latin America 1,006 911 Europe/South Pacific 824 719 Greater Asia/Africa 730 636 Total Oral, Personal and Home Care 3,313 2,996 Pet Nutrition 516 507 Total Net sales $ 3,829 $ 3,503 Operating profit Oral, Personal and Home Care North America $ 217 $ 192 Latin America 340 306 Europe/South Pacific 191 143 Greater Asia/Africa 189 152 Total Oral, Personal and Home Care 937 793 Pet Nutrition 141 131 Corporate (400 ) (113 ) Total Operating profit $ 678 $ 811 |
| Fair Value Measurements and Financial Instruments | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Fair Value Measurements and Financial Instruments | 9. 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 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 diverse, highly rated counterparties. Financial Instruments At March 31, 2010 and December 31, 2009, marketable securities of $48 and $41, respectively, were included within Other current assets in the Condensed 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 March 31, 2010 and December 31, 2009. The estimated fair value of the Companys long-term debt, including the current portion, as of March 31, 2010 and December 31, 2009, was $3,305 and $3,362, respectively, and the related carrying value was $3,075 and $3,147, 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 invested $210 in U.S. dollar-denominated bonds issued by a Venezuelan state-owned corporation with stated maturities ranging from two to seven years and $50 in 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 Condensed Consolidated Balance Sheets. These investments are considered Level 1 as they have quoted prices on an active exchange with daily liquidity.Prior to January 1, 2010, the U.S. dollar-denominated bonds had been remeasured at the parallel market rate and then translated for financial reporting purposes at the official rate of 2.15.As a result of transitioning to hyperinflationary accounting in Venezuela as of January 1, 2010, a charge of $152 was recorded to write down the value of the U.S. dollar-denominated bonds.This charge is included in the $271 one-time charge discussed in Note 10. As of March 31, 2010, the fair value of the U.S. dollar-denominated bonds and U.S. dollar-linked, devaluation-protected bonds was $126 and the $18 difference between their fair value and carrying value was recorded as an unrealized gain, net of related tax effects, in Accumulated other comprehensive income (loss). 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). Forei |
| Venezuela | |
| 3 Months Ended
Mar. 31, 2010 | |
| Notes to Financial Statements [Abstract] | |
| Venezuela | 10. Venezuela Effective January 1, 2010, Venezuela was designated as hyperinflationary and therefore the functional currency for the Companys Venezuelan subsidiary (CP Venezuela) became the U.S. dollar. As a result, the impact of Venezuelan currency fluctuations is reported in income. The change in the reporting currency from the Venezuelan bolivar to the U.S. dollar resulted in a one-time charge of approximately $271 recorded within Other (income) expense, net. This charge primarily represents the premium paid to acquire U.S. dollar-denominated cash ($150) and bonds ($152) at the parallel market rate, offset by $31 for U.S. dollar-denominated payables. Previously these items 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.The devaluation resulted in a one-time pre-tax gain of $46 recorded in Other (income) expense and an after-tax gain of $59 in the first quarter of 2010 related to the remeasurement of the local balance sheet and lower taxes on accrued but unpaid remittances from Venezuela. While we expect many of our imported products will receive the 2.60 rate of exchange, we remeasure the financial statements of our Venezuelan subsidiary at the rate at which we expect to remit dividends, which currently is 4.30. As the local currency operations in Venezuela now translate into fewer U.S. dollars, this will have an ongoing adverse effect on our reported results. |
| Document Information | |
| 3 Months Ended
Mar. 31, 2010 | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Document Period End Date | 2010-03-31 |
| Amendment Flag | false |
| Entity Information (USD $) | ||
| 3 Months Ended
Mar. 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 | 490,453,246 | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q1 |
