Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | COLGATE PALMOLIVE CO | ||
Entity Central Index Key | 21665 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Trading Symbol | CL | ||
Entity Common Stock, Shares Outstanding | 907,081,762 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $62.10 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net sales | $17,277 | $17,420 | $17,085 | ||
Cost of sales | 7,168 | 7,219 | 7,153 | ||
Gross profit | 10,109 | [1] | 10,201 | [2] | 9,932 |
Selling, general and administrative expenses | 5,982 | 6,223 | 5,930 | ||
Other (income) expense, net | 570 | 422 | 113 | ||
Operating profit | 3,557 | 3,556 | 3,889 | ||
Interest (income) expense, net | 24 | -9 | 15 | ||
Income before income taxes | 3,533 | 3,565 | 3,874 | ||
Provision for income taxes | 1,194 | 1,155 | 1,243 | ||
Net income including noncontrolling interests | 2,339 | [3] | 2,410 | [4] | 2,631 |
Net Income (Loss) Attributable to Noncontrolling Interest | 159 | 169 | 159 | ||
Net income attributable to Colgate-Palmolive Company | $2,180 | [3] | $2,241 | [4] | $2,472 |
Earnings per common share, basic | $2.38 | [3] | $2.41 | [4] | $2.60 |
Earnings per common share, diluted | $2.36 | [3] | $2.38 | [4] | $2.57 |
[1] | Gross profit for the full year of 2014 includes $29 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||
[2] | Gross profit for the full year of 2013 includes $32 of charges related to the 2012 Restructuring Program and $15 of costs related to the sale of land in Mexico. | ||||
[3] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||
[4] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income including noncontrolling interests | $2,339 | [1] | $2,410 | [2] | $2,631 |
Other comprehensive income (loss), net of tax: | |||||
Cumulative translation adjustments | -685 | -166 | -18 | ||
Retirement Plan and other retiree benefit adjustments | -329 | 318 | -145 | ||
Gains (losses) on available-for-sale securities | -48 | 13 | 18 | ||
Gains (losses) on cash flow hedges | 2 | 2 | 1 | ||
Total Other comprehensive income (loss), net of tax | -1,060 | 167 | -144 | ||
Total Comprehensive income including noncontrolling interests | 1,279 | 2,577 | 2,487 | ||
Less: Net income attributable to noncontrolling interests | 159 | 169 | 159 | ||
Less: Cumulative translation adjustments attributable to noncontrolling interests | -4 | -3 | 2 | ||
Total Comprehensive income attributable to noncontrolling interests | 155 | 166 | 161 | ||
Total Comprehensive income attributable to Colgate-Palmolive Company | $1,124 | $2,411 | $2,326 | ||
[1] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||
[2] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current Assets | ||||
Cash and cash equivalents | $1,089 | $962 | ||
Receivables (net of allowances of $54 and $67, respectively) | 1,552 | 1,636 | ||
Inventories | 1,382 | 1,425 | ||
Other current assets | 840 | 908 | ||
Total current assets | 4,863 | 4,931 | ||
Property, plant and equipment, net | 4,080 | 4,083 | ||
Goodwill | 2,307 | 2,474 | ||
Other intangible assets, net | 1,413 | 1,496 | ||
Deferred income taxes | 76 | 77 | ||
Other assets | 720 | 924 | ||
Total assets | 13,459 | [1] | 13,985 | [1] |
Current Liabilities | ||||
Notes and loans payable | 16 | 13 | ||
Current portion of long-term debt | 488 | 895 | ||
Accounts payable | 1,231 | 1,343 | ||
Accrued income taxes | 294 | 239 | ||
Other accruals | 1,917 | 2,089 | ||
Total current liabilities | 3,946 | 4,579 | ||
Long-term debt | 5,644 | 4,749 | ||
Deferred income taxes | 261 | 444 | ||
Other liabilities | 2,223 | 1,677 | ||
Total liabilities | 12,074 | 11,449 | ||
Commitments and contingent liabilities | 0 | 0 | ||
Shareholders’ Equity | ||||
Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued) | 1,466 | 1,466 | ||
Additional paid-in capital | 1,236 | 1,004 | ||
Retained earnings | 18,832 | 17,952 | ||
Accumulated other comprehensive income (loss) | -3,507 | -2,451 | ||
Unearned compensation | -20 | -33 | ||
Treasury stock, at cost | -16,862 | -15,633 | ||
Total Colgate-Palmolive Company shareholders’ equity | 1,145 | 2,305 | ||
Noncontrolling interests | 240 | 231 | ||
Total shareholders’ equity | 1,385 | 2,536 | ||
Total liabilities and shareholders’ equity | $13,459 | $13,985 | ||
[1] | Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $8,086, $8,248 and $8,066 in 2014, 2013 and 2012, respectively. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets | ||
Allowance for Doubtful Accounts Receivable, Current | $54 | $67 |
Shareholders’ Equity | ||
Common Stock, Par or Stated Value Per Share | $1 | $1 |
Common Stock, Shares Authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common Stock, Shares Issued (in shares) | 1,465,706,360 | 1,465,706,360 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | 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] | |
In Millions, unless otherwise specified | |||||||||
Beginning Balance at Dec. 31, 2011 | $1,466 | $603 | ($60) | ($12,808) | $15,649 | ($2,475) | $166 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 2,631 | 2,472 | 159 | ||||||
Other comprehensive income (loss), net of tax | -144 | -146 | 2 | ||||||
Dividends declared: | |||||||||
Common stock | -1,168 | -109 | |||||||
Stock-based compensation expense | 120 | ||||||||
Shares issued for stock options | 99 | 297 | |||||||
Shares issued for restricted stock awards | -70 | 70 | |||||||
Treasury stock acquired | -1,943 | ||||||||
Other | 66 | 19 | -2 | -17 | |||||
Ending Balance at Dec. 31, 2012 | 1,466 | 818 | -41 | -14,386 | 16,953 | -2,621 | 201 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 2,410 | [1] | 2,241 | 169 | |||||
Other comprehensive income (loss), net of tax | 167 | 170 | -3 | ||||||
Dividends declared: | |||||||||
Common stock | -1,242 | -140 | |||||||
Stock-based compensation expense | 128 | ||||||||
Shares issued for stock options | 82 | 201 | |||||||
Shares issued for restricted stock awards | -75 | 75 | |||||||
Treasury stock acquired | -1,521 | ||||||||
Other | 51 | 8 | -2 | 4 | |||||
Ending Balance at Dec. 31, 2013 | 2,536 | 1,466 | 1,004 | -33 | -15,633 | 17,952 | -2,451 | 231 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 2,339 | [2] | 2,180 | 159 | |||||
Other comprehensive income (loss), net of tax | -1,060 | -1,056 | -4 | ||||||
Dividends declared: | |||||||||
Common stock | -1,300 | -146 | |||||||
Stock-based compensation expense | 131 | ||||||||
Shares issued for stock options | 100 | 225 | |||||||
Shares issued for restricted stock awards | 77 | 77 | |||||||
Treasury stock acquired | -1,530 | ||||||||
Other | 78 | 13 | -1 | ||||||
Ending Balance at Dec. 31, 2014 | $1,385 | $1,466 | $1,236 | ($20) | ($16,862) | $18,832 | ($3,507) | $240 | |
[1] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. | ||||||||
[2] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating Activities | |||||
Net income including noncontrolling interests | $2,339 | [1] | $2,410 | [2] | $2,631 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||||
Depreciation and amortization | 442 | 439 | 425 | ||
Restructuring and termination benefits, net of cash | 64 | 182 | 35 | ||
Venezuela remeasurement charges | 327 | 172 | 0 | ||
Voluntary benefit plan contributions | -2 | -101 | -101 | ||
Charge For Foreign Tax Matter | 66 | 0 | 0 | ||
Stock-based compensation expense | 131 | 128 | 120 | ||
Deferred income taxes | 18 | 71 | 63 | ||
Cash effects of changes in: | |||||
Receivables | -109 | -37 | 19 | ||
Inventories | -60 | -97 | -21 | ||
Accounts payable and other accruals | 57 | 24 | -5 | ||
Other non-current assets and liabilities | 25 | 13 | 30 | ||
Net cash provided by operations | 3,298 | 3,204 | 3,196 | ||
Investing Activities | |||||
Capital expenditures | -757 | -670 | -565 | ||
Sale of property and non-core product lines | 24 | 15 | 72 | ||
Purchases of marketable securities and investments | -340 | -505 | -545 | ||
Proceeds from sale of marketable securities and investments | 283 | 267 | 147 | ||
Payment for acquisitions, net of cash acquired | -87 | -3 | -29 | ||
Other | 18 | 6 | 55 | ||
Net cash used in investing activities | -859 | -890 | -865 | ||
Financing Activities | |||||
Principal payments on debt | -8,525 | -7,554 | -5,011 | ||
Proceeds from issuance of debt | 8,960 | 7,976 | 5,452 | ||
Dividends paid | -1,446 | -1,382 | -1,277 | ||
Purchases of treasury shares | -1,530 | -1,521 | -1,943 | ||
Proceeds from exercise of stock options and excess tax benefits | 371 | 339 | 478 | ||
Net cash used in financing activities | -2,170 | -2,142 | -2,301 | ||
Effect of exchange rate changes on Cash and cash equivalents | -142 | -94 | -24 | ||
Net increase (decrease) in Cash and cash equivalents | 127 | 78 | 6 | ||
Cash and cash equivalents at beginning of year | 962 | 884 | 878 | ||
Cash and cash equivalents at end of year | 1,089 | 962 | 884 | ||
Supplemental Cash Flow Information | |||||
Income taxes paid | 1,009 | 1,087 | 1,280 | ||
Interest paid | $133 | $118 | $77 | ||
[1] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||
[2] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Nature of Operations | Nature of Operations | |||||||||
The Company manufactures and markets a wide variety of products in the U.S. and around the world in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes and mouthwash, 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 retail trade customers and wholesale distributors worldwide. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. The principal customers for Pet Nutrition products are authorized pet supply retailers and veterinarians. Principal global and regional trademarks include Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription Diet and Hill’s Ideal Balance. | ||||||||||
The Company’s principal classes of products accounted for the following percentages of worldwide Net sales for the past three years: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Oral Care | 46 | % | 46 | % | 44 | % | ||||
Personal Care | 21 | % | 21 | % | 22 | % | ||||
Home Care | 20 | % | 20 | % | 21 | % | ||||
Pet Nutrition | 13 | % | 13 | % | 13 | % | ||||
Total | 100 | % | 100 | % | 100 | % |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. The Company’s investments in consumer products companies with interests ranging between 20% and 50%, where the Company has significant influence over the investee, 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, 2014 and 2013, equity method investments included in Other assets in the Consolidated Balance Sheets were $31 and $27, respectively. Unrelated third parties hold the remaining ownership interests in these investments. Investments with less than a 20% interest are accounted for using the cost method. | |
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 Company’s assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairments, 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 continuing promotional programs. Current promotional programs, such as product listing allowances and co-operative advertising arrangements, are recorded in the period incurred. Continuing promotional programs are predominantly consumer coupons and volume-based sales incentive arrangements with trade customers. The redemption cost of consumer coupons is based on historical redemption experience and is recorded when coupons are distributed. Volume-based incentives offered to trade customers are based on the estimated cost of the program and are recorded as products are sold. | |
Shipping and Handling Costs | |
Shipping and handling costs are classified as Selling, general and administrative expenses and were $1,326, $1,304 and $1,262 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Marketing Costs | |
The Company markets its products through advertising and other promotional activities. Advertising costs are included in Selling, general and administrative expenses and are expensed as incurred. Certain consumer and trade promotional programs, such as consumer coupons, are recorded as a reduction of sales. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | |
Inventories | |
Inventories are stated at the lower of cost or market. The cost of approximately 80% of inventories is determined using the first-in, first-out (“FIFO”) method. The cost of all other inventories, in the U.S. and Mexico, is determined using the last-in, first-out (“LIFO”) method. | |
Property, Plant and Equipment | |
Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses. | |
Goodwill and Other Intangibles | |
Goodwill and indefinite life intangible assets, such as the Company’s global brands, are subject to impairment tests at least annually. These tests were performed and did not result in an impairment charge. Other intangible assets with finite lives, such as local brands and trademarks, customer relationships and non-compete agreements, are amortized over their estimated useful lives, generally ranging from 5 to 40 years. Amortization expense related to intangible assets is included in Other (income) expense, net, which is included in Operating profit. | |
Income Taxes | |
The provision for income taxes is determined using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect at the time such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Provision is made currently for taxes payable on remittances of overseas earnings; no provision is made for taxes on overseas retained earnings that are deemed to be indefinitely reinvested. | |
The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. The Company recognizes interest expense and penalties related to unrecognized tax benefits within income tax expense. | |
Financial Instruments | |
Derivative instruments are recorded as assets and liabilities at estimated fair value based on available market information. The Company’s derivative instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recognized in earnings each period. For cash flow hedges, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) and are recognized in earnings when the offsetting effect of the hedged item is also recognized in earnings. For hedges of the net investment in foreign subsidiaries, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) to offset the change in the value of the net investment being hedged. Cash flows related to hedges are classified in the same category as the cash flows from the hedged item in the Consolidated Statements of Cash Flows. | |
The Company may also enter into certain foreign currency and interest rate instruments that economically hedge certain of its risks but do not qualify for hedge accounting. Changes in fair value of these derivative instruments, based on quoted market prices, are recognized in earnings each period. The Company’s derivative instruments and other financial instruments are more fully described in Note 7, Fair Value Measurements and Financial Instruments along with the related fair value measurement considerations. | |
Stock-Based Compensation | |
The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units, based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of stock option awards. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model are more fully described in Note 8, Capital Stock and Stock-Based Compensation Plans. | |
Currency Translation | |
The assets and liabilities of foreign subsidiaries, other than those operating in highly inflationary environments, are translated into U.S. dollars at year-end exchange rates with resulting translation gains and losses accumulated in a separate component of shareholders’ equity. Income and expense items are translated into U.S. dollars at average rates of exchange prevailing during the year. | |
For subsidiaries operating in highly inflationary environments (currently, Venezuela), local currency-denominated non-monetary assets, including inventories, goodwill and property, plant and equipment, are remeasured at their historical exchange rates, while local currency-denominated monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these operations are included in Net income attributable to Colgate-Palmolive Company. | |
Recent Accounting Pronouncements | |
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) issued their final converged standard on revenue recognition. The standard, issued as Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” by the FASB, provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures which are significantly more comprehensive than those in existing revenue standards. This new guidance is effective for the Company beginning January 1, 2017, with no early adoption permitted. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. While the Company is currently assessing the impact of the new standard, it does not expect this new guidance to have a material impact on its Consolidated Financial Statements. | |
On April 10, 2014, the FASB issued ASU No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU No. 2014-08 changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective for the Company on a prospective basis beginning January 1, 2015. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. Additionally, Other current assets in the December 31, 2013 Consolidated Balance Sheet were adjusted to include certain non-income tax receivables which were previously included in Other accruals. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions And Divestitures | Acquisitions and Divestitures |
Acquisition | |
On October 3, 2014, the Company acquired an oral care business in Myanmar for $62 in cash plus additional consideration contingent upon achievement of performance targets under a distribution services agreement. | |
Sale of Land in Mexico | |
On September 13, 2011, the Company’s Mexican subsidiary entered into an agreement to sell to the United States of America (the “Purchaser”) the Mexico City site on which its commercial operations, technology center and soap production facility were located. The sale price is payable in three installments. During the third quarter of 2011, the Company received the first installment of $24 upon signing the agreement. During the third quarter of 2012, the Company received the second installment of $36. The final installment is due upon the transfer of the property, which is subject to the Company’s satisfaction of certain closing conditions relating to site preparation by March 20, 2015. While these conditions are not expected to be fully satisfied by March 20, 2015, in which case the Purchaser has several options under the agreement (including termination and the return to it of the first two installment payments), based on the transaction to date, the Company believes that the transfer of the property is likely to occur in 2015. The Company has reinvested the first two installments to relocate its soap production to a new state-of-the-art facility at its Mission Hills, Mexico site, to relocate its commercial and technology operations within Mexico City and to prepare the existing site for transfer. Exit costs incurred during the project primarily relate to staff leaving indemnities, accelerated depreciation and demolition to make the site building-ready. In 2014, 2013 and 2012 the Company recorded $4, $18 and $24 of pretax costs ($3, $12 and $18 of aftertax costs), respectively, related to the sale. |
Restructuring_and_Related_Impl
Restructuring and Related Implementation Charges | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges | ||||||||||||||||||||
In the fourth quarter of 2012, the Company commenced a four-year Global Growth and Efficiency Program for sustained growth. The program’s initiatives are expected to help Colgate ensure continued solid worldwide growth in unit volume, organic sales and earnings per share and enhance its global leadership positions in its core businesses. | |||||||||||||||||||||
On October 23, 2014, the Company’s Board of Directors approved an expansion of the Global Growth and Efficiency Program (as expanded the “2012 Restructuring Program”) to take advantage of additional savings opportunities. | |||||||||||||||||||||
Cumulative pretax charges related to the 2012 Restructuring Program, once all phases are approved and implemented, are estimated to be $1,285 to $1,435 ($950 to $1,050 aftertax). Implementation of the 2012 Restructuring Program is expected to be substantially completed by December 31, 2016. These pretax charges are currently estimated to be comprised of the following categories: Employee-Related Costs, including severance, pension and other termination benefits (50%); asset-related costs, primarily Incremental Depreciation and Asset Impairments (10%); and Other charges, which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities (20%) and the implementation of new strategies (20%). Anticipated pretax charges for 2015 are expected to amount to approximately $330 to $385 ($245 to $285 aftertax). Over the course of the 2012 Restructuring Program, it is currently estimated that approximately 75% of the charges will result in cash expenditures. | |||||||||||||||||||||
It is expected that the cumulative pretax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (15%), Europe/South Pacific (20%), Latin America (5%), Asia (5%), Africa/Eurasia (5%), Hill’s Pet Nutrition (10%) and Corporate (40%), which includes substantially all of the costs related to the implementation of new strategies, noted above, on a global basis. It is expected that, by the end of 2016, the 2012 Restructuring Program will contribute a net reduction of approximately 2,000-2,500 positions from the Company’s global employee workforce. | |||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, restructuring and implementation-related charges are reflected in the Consolidated Statements of Income as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 29 | $ | 32 | $ | 2 | |||||||||||||||
Selling, general and administrative expenses | 62 | 137 | 6 | ||||||||||||||||||
Other (income) expense, net | 195 | 202 | 81 | ||||||||||||||||||
Total 2012 Restructuring Program charges, pretax | $ | 286 | $ | 371 | $ | 89 | |||||||||||||||
Total 2012 Restructuring Program charges, aftertax | $ | 208 | $ | 278 | $ | 70 | |||||||||||||||
Restructuring and related implementation charges in the preceding table are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. | |||||||||||||||||||||
Total charges incurred for the 2012 Restructuring Program relate to initiatives undertaken by the following reportable operating segments: | |||||||||||||||||||||
Program-to-date | |||||||||||||||||||||
2014 | 2013 | 2012 | Accumulated Charges | ||||||||||||||||||
North America | 11 | % | 11 | % | 2 | % | 10 | % | |||||||||||||
Latin America | 4 | % | 4 | % | — | % | 4 | % | |||||||||||||
Europe/South Pacific | 20 | % | 28 | % | 55 | % | 28 | % | |||||||||||||
Asia | 3 | % | — | % | — | % | 1 | % | |||||||||||||
Africa/Eurasia | 3 | % | 7 | % | 2 | % | 5 | % | |||||||||||||
Hill’s Pet Nutrition | 10 | % | 8 | % | 3 | % | 8 | % | |||||||||||||
Corporate | 49 | % | 42 | % | 38 | % | 44 | % | |||||||||||||
Since the inception of the 2012 Restructuring Program in the fourth quarter of 2012, the Company has incurred pretax cumulative charges of $746 ($556 aftertax) in connection with the implementation of various projects as follows: | |||||||||||||||||||||
Cumulative Charges | |||||||||||||||||||||
as of December 31, 2014 | |||||||||||||||||||||
Employee-Related Costs | $ | 295 | |||||||||||||||||||
Incremental Depreciation | 51 | ||||||||||||||||||||
Asset Impairments | 2 | ||||||||||||||||||||
Other | 398 | ||||||||||||||||||||
Total | $ | 746 | |||||||||||||||||||
The majority of costs incurred since inception relate to the following projects: the implementation of the Company’s overall hubbing strategy; the consolidation of facilities; the simplification and streamlining of the Company’s research and development capabilities and oral care supply chain, both in Europe; restructuring how the Company will provide future retirement benefits to substantially all of its U.S.-based employees participating in the Company’s defined benefit retirement plan by shifting them to the Company’s defined contribution plan; the extension of shared business services and streamlining of global functions; and the closing of the Morristown, New Jersey personal care facility. | |||||||||||||||||||||
The following table summarizes the activity for the restructuring and implementation-related charges discussed above and the related accruals: | |||||||||||||||||||||
Employee-Related | Incremental | Asset | Other | Total | |||||||||||||||||
Costs | Depreciation | Impairments | |||||||||||||||||||
Balance at January 1, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Charges | 78 | — | — | 11 | 89 | ||||||||||||||||
Cash payments | (1 | ) | — | — | (4 | ) | (5 | ) | |||||||||||||
Charges against assets | — | — | — | — | — | ||||||||||||||||
Foreign exchange | 7 | — | — | (2 | ) | 5 | |||||||||||||||
Balance at December 31, 2012 | $ | 84 | $ | — | $ | — | $ | 5 | $ | 89 | |||||||||||
Charges | 144 | 26 | 1 | 200 | 371 | ||||||||||||||||
Cash payments | (97 | ) | — | — | (72 | ) | (169 | ) | |||||||||||||
Charges against assets | (17 | ) | (26 | ) | (1 | ) | — | (44 | ) | ||||||||||||
Foreign exchange | 2 | — | — | — | 2 | ||||||||||||||||
Other | — | — | — | (91 | ) | (91 | ) | ||||||||||||||
Balance at December 31, 2013 | $ | 116 | $ | — | $ | — | $ | 42 | $ | 158 | |||||||||||
Charges | 73 | 25 | 1 | 187 | 286 | ||||||||||||||||
Cash payments | (95 | ) | — | — | (117 | ) | (212 | ) | |||||||||||||
Charges against assets | (5 | ) | (25 | ) | (1 | ) | — | (31 | ) | ||||||||||||
Foreign exchange | (4 | ) | — | — | (5 | ) | (9 | ) | |||||||||||||
Other | — | — | — | — | — | ||||||||||||||||
Balance at December 31, 2014 | $ | 85 | $ | — | $ | — | $ | 107 | $ | 192 | |||||||||||
Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension and other retiree benefit enhancements amounting to $5, $17 and $0 for the years ended December 31, 2014, 2013 and 2012, respectively, which are reflected as Charges against assets within Employee-Related Costs in the preceding tables, as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension and other retiree benefit liabilities (see Note 10, Retirement Plans and Other Retiree Benefits). | |||||||||||||||||||||
Incremental Depreciation is recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments are recorded to write down assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets. | |||||||||||||||||||||
Other charges consist primarily of charges resulting directly from exit activities and the implementation of new strategies as a result of the 2012 Restructuring Program. These charges for the years ended December 31, 2014, 2013 and 2012 included third-party incremental costs related to the development and implementation of new business and strategic initiatives of $65, $50 and $8, respectively, and contract termination costs and charges resulting directly from exit activities of $40, $34 and $3, respectively, directly related to the 2012 Restructuring Program. These charges were expensed as incurred. Also included in Other charges for the years ended December 31, 2014 and 2013 are other exit costs of $82 and $25, respectively, related to the consolidation of facilities. Other charges for the year ended December 31, 2013 also included a curtailment charge of $91 related to changes to the Company’s U.S. defined benefit retirement plans (see Note 10, Retirement Plans and Other Retiree Benefits). |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
The net carrying value of Goodwill as of December 31, 2014 and 2013, by segment is as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Oral, Personal and Home Care | |||||||||||||||||||||||||
North America | $ | 352 | $ | 362 | |||||||||||||||||||||
Latin America | 320 | 353 | |||||||||||||||||||||||
Europe/South Pacific | 1,374 | 1,525 | |||||||||||||||||||||||
Asia | 160 | 126 | |||||||||||||||||||||||
Africa/Eurasia | 86 | 93 | |||||||||||||||||||||||
Total Oral, Personal and Home Care | 2,292 | 2,459 | |||||||||||||||||||||||
Pet Nutrition | 15 | 15 | |||||||||||||||||||||||
Total Goodwill | $ | 2,307 | $ | 2,474 | |||||||||||||||||||||
The change in the amount of Goodwill in each year is primarily due to the impact of foreign currency translation. | |||||||||||||||||||||||||
Other intangible assets as of December 31, 2014 and 2013 are comprised of the following: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||
Trademarks | $ | 552 | $ | (285 | ) | $ | 267 | $ | 551 | $ | (275 | ) | $ | 276 | |||||||||||
Other finite life intangible assets | 213 | (54 | ) | 159 | 219 | (45 | ) | 174 | |||||||||||||||||
Indefinite life intangible assets | 987 | — | 987 | 1,046 | — | 1,046 | |||||||||||||||||||
Total Other intangible assets | $ | 1,752 | $ | (339 | ) | $ | 1,413 | $ | 1,816 | $ | (320 | ) | $ | 1,496 | |||||||||||
The changes in the net carrying amounts of Other intangible assets during 2014, 2013 and 2012 were primarily due to amortization expense of $32, $32 and $31, respectively, as well as the impact of foreign currency translation. Annual estimated amortization expense for each of the next five years is expected to be approximately $30. |
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facilities | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Long-Term Debt and Credit Facilities | Long-Term Debt and Credit Facilities | ||||||||||||||
Long-term debt consists of the following at December 31: | |||||||||||||||
Weighted Average Interest Rate | Maturities | 2014 | 2013 | ||||||||||||
Notes | 1.90% | 2015 | - | 2078 | $ | 5,877 | $ | 5,644 | |||||||
Commercial paper | —% | 2015 | 255 | — | |||||||||||
6,132 | 5,644 | ||||||||||||||
Less: Current portion of long-term debt | 488 | 895 | |||||||||||||
Total | $ | 5,644 | $ | 4,749 | |||||||||||
The weighted-average interest rate on short-term borrowings of $16 in 2014 and $13 in 2013 included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2014 and 2013 was 1.9% and 2.2%, respectively. | |||||||||||||||
The Company classifies commercial paper as long-term debt when it has the intent and ability to refinance such obligations on a long-term basis. Excluding commercial paper reclassified as long-term debt, scheduled maturities of long-term debt and capitalized leases outstanding as of December 31, 2014, are as follows: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2015 | $ | 488 | |||||||||||||
2016 | 263 | ||||||||||||||
2017 | 660 | ||||||||||||||
2018 | 697 | ||||||||||||||
2019 | 498 | ||||||||||||||
Thereafter | 3,271 | ||||||||||||||
The Company has entered into interest rate swap agreements and foreign exchange contracts related to certain of these debt instruments. See Note 7, Fair Value Measurements and Financial Instruments for further information about the Company’s financial instruments. | |||||||||||||||
During the fourth quarter of 2014, the Company issued $134 of forty-year notes at a variable rate. During the first quarter of 2014, the Company issued $500 of five-year notes at a fixed rate of 1.75% and $500 of ten-year notes at a fixed-rate of 3.25%. During the fourth quarter of 2013, the Company issued $300 of five-year notes at a fixed rate of 1.50% and $82 of forty-year notes at a variable rate. During the second quarter of 2013, the Company issued $400 of five-year notes at a fixed rate of 0.90% and $400 of ten-year notes at a fixed rate of 2.10%. | |||||||||||||||
The debt issuances in 2014 and 2013 were U.S. dollar denominated and were under the Company’s shelf registration statement. Proceeds from the debt issuances in the first and fourth quarter of 2014 were used for general corporate purposes which included the retirement of commercial paper borrowings. Proceeds from the debt issuances in the first quarter of 2014 were also used to repay and retire $250 of U.S. dollar denominated notes and €250 of euro denominated notes, both of which became due in the second quarter of 2014. Proceeds from the debt issuances in the second and fourth quarters of 2013 were used for general corporate purposes which included the retirement of commercial paper borrowings. In addition, proceeds from the debt issuance in the second quarter of 2013 were used to repay and retire $250 of notes due in 2013. | |||||||||||||||
At December 31, 2014, the Company had access to unused domestic and foreign lines of credit of $3,001 (including under the facilities discussed below) and could also issue medium-term notes pursuant to an effective shelf registration statement. In November 2011, the Company entered into a five-year revolving credit facility with a capacity of $1,850 with a syndicate of banks. This facility was extended for an additional year in 2012 and again in 2013. In 2014, the Company entered into an amendment of this facility whereby the facility was extended for an additional year to November 2019 and the capacity of the facility was increased to $2,370. The Company also has the ability to draw $165 from a revolving credit facility that expires in November 2015. In addition, the Company has the ability to draw $20 from a new credit facility entered into during 2014, which expires in December 2015. Commitment fees related to the credit facilities are not material. | |||||||||||||||
Certain agreements with respect to the Company’s bank borrowings contain financial and other covenants as well as cross-default provisions. Noncompliance 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 noncompliance is remote. |
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | ||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Fair Value Measurements and Financial Instruments | |||||||||||||||||||||||
The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. Hedge ineffectiveness, if any, is not material for any period presented. Provided below are details of the Company’s exposures by type of risk and derivative instruments by type of hedge designation. | ||||||||||||||||||||||||
Valuation Considerations | ||||||||||||||||||||||||
Assets and liabilities carried at fair value are classified as follows: | ||||||||||||||||||||||||
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 entity’s own assumptions. | ||||||||||||||||||||||||
Foreign Exchange Risk | ||||||||||||||||||||||||
As the Company markets its products in over 200 countries and territories, it is exposed to currency fluctuations related to manufacturing and selling its products in currencies other than the U.S. dollar. The Company manages its foreign currency exposures through a combination of cost-containment measures, sourcing strategies, selling price increases and the hedging of certain costs in an effort to minimize the impact on earnings of foreign currency rate movements. | ||||||||||||||||||||||||
The Company utilizes foreign currency contracts, including forward and swap contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. The duration of foreign currency contracts generally does not exceed 12 months and the contracts are valued using observable market rates (Level 2 valuation). | ||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||
The Company manages its targeted mix of fixed and floating rate debt with debt issuances and by entering into interest rate swaps in order to mitigate fluctuations in earnings and cash flows that may result from interest rate volatility. The notional amount, interest payment and maturity date of the swaps generally match the principal, interest payment and maturity date of the related debt, and the swaps are valued using observable benchmark rates (Level 2 valuation). | ||||||||||||||||||||||||
Commodity Price Risk | ||||||||||||||||||||||||
The Company is exposed to price volatility related to raw materials used in production, such as resins, pulp, essential oils, tropical oils, tallow, poultry, corn and soybeans. The Company manages its raw material exposures through a combination of cost containment measures, sourcing strategies, ongoing productivity initiatives and the limited use of commodity hedging contracts. Futures contracts are used on a limited basis, primarily in the Hill’s Pet Nutrition segment, to manage volatility related to raw material inventory purchases of certain traded commodities, and these contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of the commodity contracts generally does not exceed 12 months. | ||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||
The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material as it is the Company’s policy to contract with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations. | ||||||||||||||||||||||||
The following summarizes the fair value of the Company’s derivative instruments and other financial instruments at December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
Account | Fair Value | Account | Fair Value | |||||||||||||||||||||
Designated derivative instruments | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | ||||||||||||||||||||
Interest rate swap contracts | Other current assets | $ | 1 | $ | 1 | Other accruals | $ | — | $ | — | ||||||||||||||
Interest rate swap contracts | Other assets | 12 | 20 | Other liabilities | 2 | 1 | ||||||||||||||||||
Foreign currency contracts | Other current assets | 21 | 14 | Other accruals | 4 | 8 | ||||||||||||||||||
Foreign currency contracts | Other assets | 60 | — | Other liabilities | — | 10 | ||||||||||||||||||
Commodity contracts | Other current assets | — | — | Other accruals | 1 | — | ||||||||||||||||||
Total designated | $ | 94 | $ | 35 | $ | 7 | $ | 19 | ||||||||||||||||
Derivatives not designated | ||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | $ | — | Other accruals | $ | — | $ | 3 | ||||||||||||||
Foreign currency contracts | Other assets | 8 | — | Other liabilities | — | — | ||||||||||||||||||
Total not designated | $ | 8 | $ | — | $ | — | $ | 3 | ||||||||||||||||
Total derivative instruments | $ | 102 | $ | 35 | $ | 7 | $ | 22 | ||||||||||||||||
Other financial instruments | ||||||||||||||||||||||||
Marketable securities | Other current assets | $ | 200 | $ | 173 | |||||||||||||||||||
Available-for-sale securities | Other assets | 322 | 685 | |||||||||||||||||||||
Note receivable | Other current assets | 42 | — | |||||||||||||||||||||
Total other financial | $ | 564 | $ | 858 | ||||||||||||||||||||
instruments | ||||||||||||||||||||||||
The carrying amount of cash, cash equivalents, accounts receivable, a note receivable and short-term debt approximated fair value as of December 31, 2014 and 2013. The estimated fair value of the Company’s long-term debt, including the current portion, as of December 31, 2014 and 2013, was $6,346 and $5,690, respectively, and the related carrying value was $6,132 and $5,644, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation). | ||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||
The Company has designated all interest rate swap contracts and certain foreign currency forward and option contracts as fair value hedges, for which the gain or loss on the derivative and the offsetting gain or loss on the hedged item are recognized in current earnings. The impact of foreign currency contracts is primarily recognized in Selling, general and administrative expenses and the impact of interest rate swap contracts is recognized in Interest (income) expense, net. | ||||||||||||||||||||||||
Activity related to fair value hedges recorded during each period presented was as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Interest | Foreign | Interest | |||||||||||||||||||||
Currency | Rate | Total | Currency | Rate | Total | |||||||||||||||||||
Contracts | Swaps | Contracts | Swaps | |||||||||||||||||||||
Notional Value at December 31, | $ | 1,163 | $ | 1,438 | $ | 2,601 | $ | 1,320 | $ | 1,188 | $ | 2,508 | ||||||||||||
Gain (loss) on derivative | 3 | (8 | ) | (5 | ) | 24 | (22 | ) | 2 | |||||||||||||||
Gain (loss) on hedged items | (3 | ) | 8 | 5 | (24 | ) | 22 | (2 | ) | |||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
All of the Company’s commodity contracts and certain foreign currency forward contracts have been designated as cash flow hedges, for which the effective portion of the gain or loss is reported as a component of Other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. | ||||||||||||||||||||||||
Activity related to cash flow hedges recorded during each period presented was as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Commodity | Foreign | Commodity | |||||||||||||||||||||
Currency | Contracts | Total | Currency | Contracts | Total | |||||||||||||||||||
Contracts | Contracts | |||||||||||||||||||||||
Notional Value at December 31, | $ | 511 | $ | 14 | $ | 525 | $ | 386 | $ | 14 | $ | 400 | ||||||||||||
Gain (loss) recognized in OCI | 9 | — | 9 | 20 | — | 20 | ||||||||||||||||||
Gain (loss) reclassified into Cost of sales | 5 | — | 5 | 16 | 1 | 17 | ||||||||||||||||||
The net gain (loss) recognized in OCI for both foreign currency contracts and commodity contracts is expected to be recognized in Cost of sales within the next twelve months. | ||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||
The Company has designated certain foreign currency forward and option contracts and certain foreign currency-denominated debt as net investment hedges, for which the gain or loss on the instrument is reported as a component of Currency translation adjustments within OCI, along with the offsetting gain or loss on the hedged items. | ||||||||||||||||||||||||
Activity related to net investment hedges recorded during each period presented was as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Foreign | Foreign | Foreign | |||||||||||||||||||||
Currency | Currency | Total | Currency | Currency | Total | |||||||||||||||||||
Contracts | Debt | Contracts | Debt | |||||||||||||||||||||
Notional Value at December 31, | $ | 567 | $ | 297 | $ | 864 | $ | 529 | $ | 256 | $ | 785 | ||||||||||||
Gain (loss) on instruments | 73 | 11 | 84 | (24 | ) | (4 | ) | (28 | ) | |||||||||||||||
Gain (loss) on hedged items | (73 | ) | (11 | ) | (84 | ) | 23 | 4 | 27 | |||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments for each period consist of a cross-currency swap that serves as an economic hedge of a foreign currency deposit, for which the gain or loss on the instrument and the offsetting gain or loss on the hedged item are recognized in Other (income) expense, net for each period. | ||||||||||||||||||||||||
Activity related to these contracts during each period presented was as follows: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Cross-currency | Cross-currency | |||||||||||||||||||||||
Swap | Swap | |||||||||||||||||||||||
Notional Value at December 31, | $ | 102 | $ | 96 | ||||||||||||||||||||
Gain (loss) on instrument | 5 | (2 | ) | |||||||||||||||||||||
Gain (loss) on hedged item | (5 | ) | 2 | |||||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||||||||
Other financial instruments are classified as Other current assets or Other assets. | ||||||||||||||||||||||||
Other financial instruments classified as Other current assets include marketable securities and a fixed interest rate note receivable. Marketable securities consist of bank deposits of $123 with original maturities greater than 90 days (Level 1 valuation) and the current portion of bonds issued by the Venezuelan government (Level 2 valuation) in the amount of $77. The long-term portion of these bonds in the amount of $322 is included in Other assets. | ||||||||||||||||||||||||
Through its subsidiary in Venezuela, the Company is invested in U.S. dollar-linked devaluation-protected bonds and bolivar denominated fixed interest rate bonds, both of which are issued by the Venezuelan government. These bonds are actively traded and, therefore, are considered Level 2 investments as their values are determined based upon observable market-based inputs or unobservable inputs that are corroborated by market data. As of December 31, 2014, the fair market value of U.S. dollar-linked devaluation-protected bonds and bolivar denominated fixed interest rate bonds was $114 and $285, respectively. These bonds are considered available-for-sale securities and, as noted above, the long-term portion in the amount of $322 is included in Other assets. | ||||||||||||||||||||||||
The following table presents a reconciliation of the Venezuelan bonds at fair value for the twelve months ended December 31: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance as of January 1 | $ | 685 | $ | 642 | ||||||||||||||||||||
Unrealized gain (loss) on investment | (341 | ) | (113 | ) | ||||||||||||||||||||
Purchases and sales during the period | 55 | 156 | ||||||||||||||||||||||
Ending balance as of December 31 | $ | 399 | $ | 685 | ||||||||||||||||||||
Unrealized loss on investment for the year ended December 31, 2014 included a net loss of $324 primarily related to the remeasurement of the bolivar denominated fixed interest rate bonds and the devaluation-protected bonds in Venezuela as a result of the effective devaluations in the first and third quarters of 2014. | ||||||||||||||||||||||||
Unrealized loss on investment for the year ended December 31, 2013 consisted primarily of a charge of $133 related only to the remeasurement of the bolivar denominated fixed interest rate bonds in Venezuela as a result of the devaluation in the first quarter of 2013. No remeasurement charge was required on the devaluation-protected bonds in the first quarter of 2013 since the official exchange rate changed from 4.30 to 6.30 bolivares per dollar and the devaluation-protected bonds revalued to the official exchange rate. For further information regarding Venezuela, refer to Note 14, Venezuela. |
Capital_Stock_and_StockBased_C
Capital Stock and Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Capital Stock and Stock-Based Compensation Plans | Capital Stock and Stock-Based Compensation Plans | |||||||||||||
Preference Stock | ||||||||||||||
The Company has the authority to issue 50,262,150 shares of preference stock. | ||||||||||||||
Stock Repurchases | ||||||||||||||
The Company repurchased its common stock at a cost of $1,530 during 2014 under a share repurchase program that was approved by the Board of Directors and publicly announced in September 2011 (the “2011 Program”). The 2011 Program authorized the Company to repurchase up to 50 million shares of its common stock. The Board authorized that the number of shares remaining under the 2011 Program as of May 15, 2013 be increased by 100% as a result of the two-for-one stock split of the Company’s common stock in 2013. The Board also has authorized share repurchases on an ongoing basis to fulfill certain requirements of the Company’s compensation and benefit programs. The shares may be repurchased from time to time in open market or privately negotiated transactions at the Company’s discretion, subject to market conditions, customary blackout periods and other factors. | ||||||||||||||
On February 19, 2015, the Board authorized the repurchase of shares of the Company’s common stock having an aggregate purchase price of up to $5,000 under a new share repurchase program (the “2015 Program”), which replaced the 2011 Program. The Company will commence repurchase of shares of the Company’s common stock under the 2015 Program after February 19, 2015. | ||||||||||||||
The Company may use either authorized and unissued shares or treasury shares to meet share requirements resulting from the exercise of stock options and the vesting of restricted stock unit awards. | ||||||||||||||
A summary of common stock and treasury stock activity for the three years ended December 31, is as follows: | ||||||||||||||
Common Stock Outstanding | Treasury Stock | |||||||||||||
Balance, January 1, 2012 | 960,036,150 | 505,670,210 | ||||||||||||
Common stock acquired | (38,730,602 | ) | 38,730,602 | |||||||||||
Shares issued for stock options | 12,217,230 | (12,217,230 | ) | |||||||||||
Shares issued for restricted stock units and other | 2,205,898 | (2,205,898 | ) | |||||||||||
Balance, December 31, 2012 | 935,728,676 | 529,977,684 | ||||||||||||
Common stock acquired | (25,573,317 | ) | 25,573,317 | |||||||||||
Shares issued for stock options | 7,883,834 | (7,883,834 | ) | |||||||||||
Shares issued for restricted stock units and other | 1,907,382 | (1,907,382 | ) | |||||||||||
Balance, December 31, 2013 | 919,946,575 | 545,759,785 | ||||||||||||
Common stock acquired | (23,131,081 | ) | 23,131,081 | |||||||||||
Shares issued for stock options | 7,977,124 | (7,977,124 | ) | |||||||||||
Shares issued for restricted stock units and other | 1,919,527 | (1,919,527 | ) | |||||||||||
Balance, December 31, 2014 | 906,712,145 | 558,994,215 | ||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units, based on the fair value of those awards at the date of grant. The value of restricted stock units, based on market prices, is amortized on a straight-line basis over the requisite service period. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award. Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation cost from the grant date through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award. | ||||||||||||||
The Company has one incentive compensation plan, which was approved by the Company’s stockholders on May 10, 2013, pursuant to which it issues restricted stock units and stock options to employees and shares of common stock and stock options to non-employee directors. The Personnel and Organization Committee of the Board of Directors, which is comprised entirely of independent directors, administers the incentive compensation plan. Previously, the Company issued these awards pursuant to four different stockholder-approved plans. The total stock-based compensation expense charged against pretax income for these plans was $131, $128 and $120 for the years ended December 31, 2014, 2013 and 2012, respectively. The total income tax benefit recognized on stock-based compensation was approximately $42, $39 and $37 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock-based compensation expense is recorded within Selling, general and administrative expenses in the Corporate segment as these amounts are not included in internal measures of segment operating performance. | ||||||||||||||
The Company uses the Black-Scholes option pricing model to determine the fair value of stock option awards. The weighted-average estimated fair value of stock options granted in the years ended December 31, 2014, 2013 and 2012 was $7.60, $7.41 and $6.73, respectively. Fair value is estimated using the Black-Scholes option pricing model with the assumptions summarized in the following table: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected Term of Options | 4.5 years | 4.5 years | 4.5 years | |||||||||||
Expected Volatility Rate | 17.1 | % | 18.4 | % | 20.8 | % | ||||||||
Risk-Free Interest Rate | 1.6 | % | 1.5 | % | 0.6 | % | ||||||||
Expected Dividend Yield | 2.3 | % | 2.3 | % | 2.4 | % | ||||||||
The weighted-average expected term of options granted each year was determined with reference to historical exercise and post-vesting cancellation experience, the vesting period of the awards and contractual term of the awards, among other factors. Expected volatility incorporates implied share-price volatility derived from exchange traded options on the Company’s common stock. The risk-free interest rate for the expected term of the option is based on the yield of a zero-coupon U.S. Treasury bond with a maturity period equal to the option’s expected term. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
The Company grants restricted stock unit awards to officers and other employees. Awards vest at the end of the restriction period, which is generally three years. As of December 31, 2014, approximately 12,414,000 shares of common stock were available for future restricted stock unit awards. | ||||||||||||||
A summary of restricted stock unit activity during 2014 is presented below: | ||||||||||||||
Shares | Weighted Average Grant Date Fair Value Per Award | |||||||||||||
(in thousands) | ||||||||||||||
Restricted stock units as of January 1, 2014 | 4,539 | $ | 48 | |||||||||||
Activity: | ||||||||||||||
Granted | 1,092 | 64 | ||||||||||||
Vested | (1,867 | ) | 42 | |||||||||||
Forfeited | (70 | ) | 52 | |||||||||||
Restricted stock units as of December 31, 2014 | 3,694 | $ | 56 | |||||||||||
As of December 31, 2014, there was $63 of total unrecognized compensation expense related to nonvested restricted stock unit awards, which will be recognized over a weighted-average period of 2.1 years. The total fair value of shares vested during the years ended December 31, 2014, 2013 and 2012 was $71, $69 and $63, respectively. | ||||||||||||||
Stock Options | ||||||||||||||
The Company issues non-qualified stock options to non-employee directors, officers and other employees. Stock options generally have a contractual term of six years and vest over three years. As of December 31, 2014, 46,062,000 shares of common stock were available for future stock option grants. | ||||||||||||||
A summary of stock option activity during 2014 is presented below: | ||||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Intrinsic Value of Unexercised | |||||||||||
(in thousands) | (in years) | In-the-Money Options | ||||||||||||
Options outstanding, January 1, 2014 | 42,832 | $ | 47 | |||||||||||
Granted | 9,036 | 64 | ||||||||||||
Exercised | (8,526 | ) | 41 | |||||||||||
Forfeited or expired | (440 | ) | 57 | |||||||||||
Options outstanding, December 31, 2014 | 42,902 | 52 | 4 | $ | 746 | |||||||||
Options exercisable, December 31, 2014 | 24,946 | $ | 46 | 3 | $ | 582 | ||||||||
As of December 31, 2014, there was $46 of total unrecognized compensation expense related to options, which will be recognized over a weighted-average period of 1.5 years. The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $211, $180 and $210, respectively. | ||||||||||||||
The benefits of tax deductions in excess of grant date fair value resulting from the exercise of stock options and vesting of restricted stock unit awards for the years ended December 31, 2014, 2013 and 2012 was $63, $51 and $60, respectively, and was reported as a financing cash flow. Cash proceeds received from options exercised for the years ended December 31, 2014, 2013 and 2012 were $314, $289 and $409, respectively. |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Ownership Plan | 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 from the notes issuance to purchase 6,315,149 shares of Series B Convertible Preference stock (the “Series B Preference stock”) from the Company. As a result of rules issued by the Internal Revenue Service (“IRS”) related to employer stock held in defined contribution plans, the Company issued a notice of redemption with respect to the remaining shares of Series B Preference stock outstanding on December 29, 2010. At the direction of the Company’s ESOP trustee, these shares of Series B Preference stock were converted into 38,483,072 shares of common stock, adjusted for the two-for-one stock split of the Company’s common stock in 2013. As of December 31, 2014 and 2013, there were 26,137,798 and 29,119,135 shares of common stock, respectively, outstanding and issued to the Company’s ESOP. The common stock for the conversion was issued from treasury shares. | |
During 2000, the ESOP entered into a loan agreement with the Company under which the benefits of the ESOP may be extended through 2035. As of December 31, 2014, the ESOP had outstanding borrowings from the Company of $20, which represents unearned compensation shown as a reduction in Shareholders’ equity. | |
Dividends on stock held by the ESOP are paid to the ESOP trust and, together with cash contributions from the Company, are (a) used by the ESOP to repay principal and interest, (b) credited to participant accounts, or (c) used for contributions to the Company’s defined contribution plans. Stock is allocated to participants based upon the ratio of the current year’s debt service to the sum of total outstanding principal and interest payments over the life of the debt. As of December 31, 2014, 18,489,250 shares of common stock were released and allocated to participant accounts and 7,648,548 shares of common stock were available for future allocation to participant accounts. | |
Dividends on the stock used to repay principal and interest or credited to participant accounts 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 ESOP was $2, $0, and $0 in 2014, 2013 and 2012, respectively. | |
The Company paid dividends on the shares held by the ESOP of $40 in 2014, $41 in 2013 and $40 in 2012. The Company contributed $2 to the ESOP in 2014. The Company did not make any contributions to the ESOP in 2013 or 2012. |
Retirement_Plans_and_Other_Ret
Retirement Plans and Other Retiree Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Retirement Plans and Other Retiree Benefits | 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 under these plans are based primarily on years of service and employees’ career earnings. | |||||||||||||||||||||||||||||||||||||
Effective January 1, 2014, the Company changed the way it provides retirement benefits to substantially all of its U.S.-based employees participating in its defined benefit retirement plan. For these employees, the Company now provides all future retirement benefits through the Company’s defined contribution plan. As a result, no future service is considered for these employees for future accruals in the U.S. defined benefit retirement plans. Participants in the Company’s U.S. defined benefit retirement plan whose retirement benefit was determined under the cash balance formula continue to earn interest on their vested balances as of December 31, 2013. Participants whose retirement benefit was determined under the final average earnings formula continue to have their final average earnings adjusted for pay increases until termination of employment. These changes resulted in a curtailment charge of $91 as all of the previously unamortized prior service costs recorded in Accumulated other comprehensive income (loss) was recognized in 2013. | |||||||||||||||||||||||||||||||||||||
In the Company’s 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 Company’s defined benefit plans are as follows: | |||||||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||||||
Equity securities | 27 | % | 39 | % | |||||||||||||||||||||||||||||||||
Fixed income securities | 53 | 47 | |||||||||||||||||||||||||||||||||||
Real estate and other investments | 20 | 14 | |||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||
At December 31, 2014 the allocation of the Company’s plan assets and the level of valuation input for each major asset category was as follows: | |||||||||||||||||||||||||||||||||||||
Level of Valuation | Pension Plans | ||||||||||||||||||||||||||||||||||||
Input | United States | International | Other Retiree | ||||||||||||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | Level 1 | $ | 48 | $ | 10 | $ | 1 | ||||||||||||||||||||||||||||||
U.S. common stocks | Level 1 | 130 | 3 | 3 | |||||||||||||||||||||||||||||||||
International common stocks | Level 1 | — | 2 | — | |||||||||||||||||||||||||||||||||
Fixed income securities(a) | Level 2 | 625 | — | 13 | |||||||||||||||||||||||||||||||||
Common/collective trust funds(b): | Level 2 | ||||||||||||||||||||||||||||||||||||
Developed market equity index funds | 352 | 193 | 9 | ||||||||||||||||||||||||||||||||||
Emerging market equity index funds | 32 | 8 | 1 | ||||||||||||||||||||||||||||||||||
Other common stock funds | 118 | 27 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: U.S. or foreign government and agency securities | 115 | 107 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: investment grade corporate bonds | 168 | 75 | 4 | ||||||||||||||||||||||||||||||||||
Fixed income funds: high yield corporate bonds and other | 136 | 54 | 3 | ||||||||||||||||||||||||||||||||||
Guaranteed investment contracts(c) | Level 2 | 1 | 54 | — | |||||||||||||||||||||||||||||||||
Real estate funds(d) | Level 3 | 46 | 19 | 1 | |||||||||||||||||||||||||||||||||
Total Investments at fair value | $ | 1,771 | $ | 552 | $ | 41 | |||||||||||||||||||||||||||||||
At December 31, 2013 the allocation of the Company’s plan assets and the level of valuation input for each major asset category was as follows: | |||||||||||||||||||||||||||||||||||||
Level of Valuation | Pension Plans | ||||||||||||||||||||||||||||||||||||
Input | United States | International | Other Retiree | ||||||||||||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | Level 1 | $ | 97 | $ | 23 | $ | 3 | ||||||||||||||||||||||||||||||
U.S. common stocks | Level 1 | 127 | — | 3 | |||||||||||||||||||||||||||||||||
International common stocks | Level 1 | 51 | — | 1 | |||||||||||||||||||||||||||||||||
Fixed income securities(a) | Level 2 | 433 | — | 8 | |||||||||||||||||||||||||||||||||
Common/collective trust funds(b): | Level 2 | ||||||||||||||||||||||||||||||||||||
Developed market equity index funds | 359 | 229 | 9 | ||||||||||||||||||||||||||||||||||
Emerging market equity index funds | 33 | 9 | 1 | ||||||||||||||||||||||||||||||||||
Other common stock funds | 123 | 41 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: U.S. or foreign government and agency securities | 149 | 73 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: investment grade corporate bonds | 203 | 71 | 5 | ||||||||||||||||||||||||||||||||||
Fixed income funds: high yield corporate bonds and other | 119 | 35 | 4 | ||||||||||||||||||||||||||||||||||
Guaranteed investment contracts(c) | Level 2 | 2 | 56 | — | |||||||||||||||||||||||||||||||||
Real estate funds(d) | Level 3 | 40 | 21 | 1 | |||||||||||||||||||||||||||||||||
Total Investments at fair value | $ | 1,736 | $ | 558 | $ | 41 | |||||||||||||||||||||||||||||||
_______ | |||||||||||||||||||||||||||||||||||||
(a) | The fixed income securities are traded over the counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of December 31, 2014 and 2013, approximately 50% of the fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and 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 estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. Since the appraisals include unobservable inputs, these investments are classified as Level 3. These unobservable inputs may include items such as annual gross rents, projected vacancy rates, collection losses and recovery rates, yield rates, growth assumptions and risk adjusted discount rates. | ||||||||||||||||||||||||||||||||||||
The following table presents a reconciliation of Level 3 plan assets measured at fair value for the year ended December 31: | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
United States Real Estate Fund | International Real Estate Fund | United States Real Estate Fund | International Real Estate Fund | ||||||||||||||||||||||||||||||||||
Beginning balance as of January 1 | $ | 41 | $ | 21 | $ | 72 | $ | 20 | |||||||||||||||||||||||||||||
Earned income, net of management expenses | 2 | — | 2 | — | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment | 4 | (1 | ) | 9 | — | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | — | (1 | ) | (42 | ) | 1 | |||||||||||||||||||||||||||||||
Ending balance as of December 31 | $ | 47 | $ | 19 | $ | 41 | $ | 21 | |||||||||||||||||||||||||||||
Equity securities in the U.S. plans include investments in the Company’s common stock representing 7% of U.S. plan assets at December 31, 2014 and 6% of U.S. plan assets at December 31, 2013. No shares of the Company’s common stock were purchased or sold by the U.S. plans in 2014. In 2013, the U.S. plans sold 1,540,215 shares of the Company’s common stock to the Company. The plans received dividends on the Company’s common stock of $2 in 2014 and $3 in 2013. | |||||||||||||||||||||||||||||||||||||
Other Retiree Benefits | |||||||||||||||||||||||||||||||||||||
The Company and certain of its subsidiaries provide health care and life insurance benefits for retired employees to the extent not provided by government-sponsored plans. | |||||||||||||||||||||||||||||||||||||
The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans are as follows: | |||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Change in Benefit Obligations | |||||||||||||||||||||||||||||||||||||
Benefit obligations at beginning of year | $ | 2,102 | $ | 2,227 | $ | 894 | $ | 888 | $ | 792 | $ | 875 | |||||||||||||||||||||||||
Service cost | 1 | 24 | 17 | 19 | 10 | 11 | |||||||||||||||||||||||||||||||
Interest cost | 102 | 90 | 35 | 34 | 42 | 38 | |||||||||||||||||||||||||||||||
Participants’ contributions | — | 1 | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Acquisitions/plan amendments | — | 40 | — | 2 | — | — | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 362 | (148 | ) | 123 | (1 | ) | 203 | (101 | ) | ||||||||||||||||||||||||||||
Foreign exchange impact | — | — | (88 | ) | 12 | (3 | ) | (5 | ) | ||||||||||||||||||||||||||||
Termination benefits (1) | 5 | 11 | — | — | — | 6 | |||||||||||||||||||||||||||||||
Curtailments and settlements | — | (12 | ) | (28 | ) | (21 | ) | — | — | ||||||||||||||||||||||||||||
Benefit payments | (154 | ) | (131 | ) | (40 | ) | (41 | ) | (33 | ) | (32 | ) | |||||||||||||||||||||||||
Other | (12 | ) | — | (1 | ) | (1 | ) | — | — | ||||||||||||||||||||||||||||
Benefit obligations at end of year | $ | 2,406 | $ | 2,102 | $ | 916 | $ | 894 | $ | 1,011 | $ | 792 | |||||||||||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,736 | $ | 1,597 | $ | 558 | $ | 486 | $ | 41 | $ | 37 | |||||||||||||||||||||||||
Actual return on plan assets | 178 | 148 | 65 | 59 | 4 | 4 | |||||||||||||||||||||||||||||||
Company contributions | 23 | 121 | 36 | 61 | 29 | 32 | |||||||||||||||||||||||||||||||
Participants’ contributions | — | 1 | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Foreign exchange impact | — | — | (43 | ) | 2 | — | — | ||||||||||||||||||||||||||||||
Settlements | — | — | (27 | ) | (11 | ) | — | — | |||||||||||||||||||||||||||||
Benefit payments | (154 | ) | (131 | ) | (40 | ) | (41 | ) | (33 | ) | (32 | ) | |||||||||||||||||||||||||
Other | (12 | ) | — | (1 | ) | (1 | ) | — | — | ||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,771 | $ | 1,736 | $ | 552 | $ | 558 | $ | 41 | $ | 41 | |||||||||||||||||||||||||
Funded Status | |||||||||||||||||||||||||||||||||||||
Benefit obligations at end of year | $ | 2,406 | $ | 2,102 | $ | 916 | $ | 894 | $ | 1,011 | $ | 792 | |||||||||||||||||||||||||
Fair value of plan assets at end of year | 1,771 | 1,736 | 552 | 558 | 41 | 41 | |||||||||||||||||||||||||||||||
Net amount recognized | $ | (635 | ) | $ | (366 | ) | $ | (364 | ) | $ | (336 | ) | $ | (970 | ) | $ | (751 | ) | |||||||||||||||||||
Amounts Recognized in Balance Sheet | |||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 16 | $ | 6 | $ | 12 | $ | — | $ | — | |||||||||||||||||||||||||
Current liabilities | (20 | ) | (19 | ) | (28 | ) | (36 | ) | (41 | ) | (39 | ) | |||||||||||||||||||||||||
Noncurrent liabilities | (615 | ) | (363 | ) | (342 | ) | (312 | ) | (929 | ) | (712 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | (635 | ) | $ | (366 | ) | $ | (364 | ) | $ | (336 | ) | $ | (970 | ) | $ | (751 | ) | |||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 933 | $ | 674 | $ | 259 | $ | 181 | $ | 481 | $ | 296 | |||||||||||||||||||||||||
Transition/prior service cost | 2 | 3 | 19 | 23 | (3 | ) | 1 | ||||||||||||||||||||||||||||||
$ | 935 | $ | 677 | $ | 278 | $ | 204 | $ | 478 | $ | 297 | ||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,283 | $ | 1,995 | $ | 817 | $ | 802 | $ | — | $ | — | |||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.24 | % | 4.96 | % | 3.06 | % | 3.99 | % | 4.36 | % | 5.24 | % | |||||||||||||||||||||||||
Long-term rate of return on plan assets | 6.8 | % | 6.8 | % | 5.05 | % | 5.5 | % | 6.8 | % | 6.8 | % | |||||||||||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | 2.83 | % | 3.02 | % | — | % | — | % | |||||||||||||||||||||||||
ESOP growth rate | — | % | — | % | — | % | — | % | 10 | % | 10 | % | |||||||||||||||||||||||||
Medical cost trend rate of increase | — | % | — | % | — | % | — | % | 7 | % | 7 | % | |||||||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||||||||||
(1) | Represents pension and other retiree benefit enhancements incurred in 2014 and 2013 pursuant to the 2012 Restructuring Program. | ||||||||||||||||||||||||||||||||||||
The overall investment objective of the plans is to balance risk and return so that obligations to employees are met. The Company evaluates its long-term rate of return on plan assets on an annual basis. In determining the long-term rate of return, the Company considers the nature of the plans’ investments and the historical rates of return. The assumed rate of return as of December 31, 2014 for the U.S. plans was 6.80%. Average annual rates of return for the U.S. plans for the most recent 1-year, 5-year, 10-year, 15-year and 25-year periods were 11%, 10%, 7%, 5%, and 8%, respectively. Similar assessments were performed in determining rates of return on international pension plan assets to arrive at the Company’s 2014 weighted-average rate of return of 5.05%. | |||||||||||||||||||||||||||||||||||||
The medical cost trend rate of increase assumed in measuring the expected cost of benefits is projected to decrease from 7.0% in 2015 to 5.0% by 2021, remaining at 5.0% for the years thereafter. Changes in the assumed rate can have a significant effect on amounts reported. A 1% change in the assumed medical cost trend rate would have the following approximate effect: | |||||||||||||||||||||||||||||||||||||
One percentage point | |||||||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation | $ | 150 | $ | (119 | ) | ||||||||||||||||||||||||||||||||
Total of service and interest cost components | 11 | (9 | ) | ||||||||||||||||||||||||||||||||||
Expected mortality is a key assumption in the measurement for pension and other postretirement benefit obligations. For the Company’s U.S. plans, this assumption was updated as of December 31, 2014 in order to reflect the Society of Actuaries’ Retirement Plan Experience Committee’s updated mortality tables and mortality improvement scale published in October 2014. This resulted in an increase of 6% and 9% to the benefit obligations for the Company’s U.S. pension plans and other postretirement benefits, respectively. | |||||||||||||||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consist of the following: | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Benefit Obligation Exceeds Fair Value of Plan Assets | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 2,958 | $ | 1,130 | |||||||||||||||||||||||||||||||||
Fair value of plan assets | 1,955 | 402 | |||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | 2,725 | 700 | |||||||||||||||||||||||||||||||||||
Fair value of plan assets | 1,922 | 66 | |||||||||||||||||||||||||||||||||||
Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows: | |||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 24 | $ | 24 | $ | 17 | $ | 19 | $ | 12 | $ | 11 | $ | 13 | $ | 11 | |||||||||||||||||||
Interest cost | 102 | 90 | 97 | 35 | 34 | 35 | 42 | 38 | 40 | ||||||||||||||||||||||||||||
Annual ESOP allocation | — | — | — | — | — | — | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Expected return on plan assets | (112 | ) | (118 | ) | (112 | ) | (29 | ) | (26 | ) | (26 | ) | (3 | ) | (3 | ) | (3 | ) | |||||||||||||||||||
Amortization of transition & prior service costs (credits) | 1 | 9 | 9 | 4 | 2 | 2 | 3 | 1 | 3 | ||||||||||||||||||||||||||||
Amortization of actuarial loss | 37 | 68 | 62 | 6 | 10 | 9 | 16 | 21 | 18 | ||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 29 | $ | 73 | $ | 80 | $ | 33 | $ | 39 | $ | 32 | $ | 68 | $ | 68 | $ | 67 | |||||||||||||||||||
Other postretirement charges | 5 | 102 | — | (8 | ) | 3 | 9 | — | 6 | 1 | |||||||||||||||||||||||||||
Total pension cost | $ | 34 | $ | 175 | $ | 80 | $ | 25 | $ | 42 | $ | 41 | $ | 68 | $ | 74 | $ | 68 | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.96 | % | 4.14 | % | 4.9 | % | 3.99 | % | 3.57 | % | 4.59 | % | 5.24 | % | 4.32 | % | 5.26 | % | |||||||||||||||||||
Long-term rate of return on plan assets | 6.8 | % | 7.3 | % | 7.75 | % | 5.5 | % | 5.39 | % | 5.91 | % | 6.8 | % | 7.3 | % | 7.75 | % | |||||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | 4 | % | 3.02 | % | 2.8 | % | 2.87 | % | — | % | — | % | — | % | |||||||||||||||||||
ESOP growth rate | — | % | — | % | — | % | — | % | — | % | — | % | 10 | % | 10 | % | 10 | % | |||||||||||||||||||
Medical cost trend rate of increase | — | % | — | % | — | % | — | % | — | % | — | % | 7 | % | 7.5 | % | 8 | % | |||||||||||||||||||
Other postretirement charges in 2014 include pension and other benefit enhancements amounting to $5 incurred pursuant to the 2012 Restructuring Program. | |||||||||||||||||||||||||||||||||||||
Other postretirement charges in 2013 primarily relate to a curtailment charge of $91 resulting from changes to the Company’s defined benefit retirement plans in the U.S. and certain other one-time pension and other retiree benefit enhancements incurred pursuant to the 2012 Restructuring Program. | |||||||||||||||||||||||||||||||||||||
Other postretirement charges in 2012 primarily relate to the sale of land in Mexico. | |||||||||||||||||||||||||||||||||||||
The Company made voluntary contributions of $2, $101 and $101 in 2014, 2013 and 2012, respectively, to its U.S. retirement plans. | |||||||||||||||||||||||||||||||||||||
The estimated actuarial loss and the estimated transition/prior service cost for defined benefit and other retiree benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is as follows: | |||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 48 | $ | 27 | |||||||||||||||||||||||||||||||||
Net transition & prior service cost | 11 | 3 | |||||||||||||||||||||||||||||||||||
Expected Contributions & Benefit Payments | |||||||||||||||||||||||||||||||||||||
Management does not expect to make a voluntary contribution to U.S. pension plans for the year ending December 31, 2015. Actual funding may differ from current estimates depending on the variability of the market value of the assets as compared to the obligation and other market or regulatory conditions. | |||||||||||||||||||||||||||||||||||||
Total benefit payments to be paid to participants for the year ending December 31, 2015 from the Company’s assets are estimated to be approximately $69. Total benefit payments expected to be paid to participants from plan assets, or directly from the Company’s assets to participants in unfunded plans, are as follows: | |||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | United States | International | Other Retiree Benefit Plans | Total | |||||||||||||||||||||||||||||||||
2015 | $ | 139 | $ | 63 | $ | 42 | $ | 244 | |||||||||||||||||||||||||||||
2016 | 139 | 45 | 43 | 227 | |||||||||||||||||||||||||||||||||
2017 | 139 | 55 | 44 | 238 | |||||||||||||||||||||||||||||||||
2018 | 139 | 54 | 45 | 238 | |||||||||||||||||||||||||||||||||
2019 | 140 | 64 | 46 | 250 | |||||||||||||||||||||||||||||||||
2020-2024 | 721 | 646 | 247 | 1,614 | |||||||||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The components of income before income taxes are as follows for the three years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 1,094 | $ | 1,018 | $ | 1,155 | |||||||
International | 2,439 | 2,547 | 2,719 | ||||||||||
Total Income before income taxes | $ | 3,533 | $ | 3,565 | $ | 3,874 | |||||||
The provision for income taxes consists of the following for the three years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 348 | $ | 314 | $ | 395 | |||||||
International | 846 | 841 | 848 | ||||||||||
Total Provision for income taxes | $ | 1,194 | $ | 1,155 | $ | 1,243 | |||||||
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: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Goodwill and intangible assets | $ | (40 | ) | $ | (14 | ) | $ | (7 | ) | ||||
Property, plant and equipment | (13 | ) | — | (13 | ) | ||||||||
Pension and other retiree benefits | 19 | 85 | (14 | ) | |||||||||
Stock-based compensation | 11 | 10 | 5 | ||||||||||
Tax loss and tax credit carryforwards | 5 | (30 | ) | (39 | ) | ||||||||
Other, net | (19 | ) | (33 | ) | 32 | ||||||||
Total deferred tax provision | $ | (37 | ) | $ | 18 | $ | (36 | ) | |||||
The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows: | |||||||||||||
Percentage of Income before income taxes | 2014 | 2013 | 2012 | ||||||||||
Tax at United States statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 0.7 | 0.4 | 0.7 | ||||||||||
Earnings taxed at other than United States statutory rate | (2.3 | ) | (1.4 | ) | (2.6 | ) | |||||||
Charge for a foreign tax matter (1) | 1.9 | — | — | ||||||||||
Other, net | (1.5 | ) | (1.6 | ) | (1.0 | ) | |||||||
Effective tax rate | 33.8 | % | 32.4 | % | 32.1 | % | |||||||
_________ | |||||||||||||
(1) | The charge for a foreign tax matter relates to a notice of an adverse decision in a foreign court regarding a tax position taken in prior years received by the Company in the second quarter of 2014. | ||||||||||||
The components of deferred tax assets (liabilities) are as follows at December 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Goodwill and intangible assets | $ | (497 | ) | $ | (475 | ) | |||||||
Property, plant and equipment | (380 | ) | (375 | ) | |||||||||
Other | (266 | ) | (237 | ) | |||||||||
(1,143 | ) | (1,087 | ) | ||||||||||
Deferred tax assets: | |||||||||||||
Pension and other retiree benefits | 638 | 448 | |||||||||||
Tax loss and tax credit carryforwards | 33 | 28 | |||||||||||
Accrued liabilities | 276 | 317 | |||||||||||
Stock-based compensation | 119 | 116 | |||||||||||
Other | 148 | 95 | |||||||||||
1,214 | 1,004 | ||||||||||||
Net deferred income taxes | $ | 71 | $ | (83 | ) | ||||||||
2014 | 2013 | ||||||||||||
Deferred taxes included within: | |||||||||||||
Assets: | |||||||||||||
Other current assets | $ | 256 | $ | 284 | |||||||||
Deferred income taxes | 76 | 77 | |||||||||||
Liabilities: | |||||||||||||
Deferred income taxes | (261 | ) | (444 | ) | |||||||||
Net deferred income taxes | $ | 71 | $ | (83 | ) | ||||||||
Applicable U.S. income and foreign withholding taxes have not been provided on approximately $4,900 of undistributed earnings of foreign subsidiaries at December 31, 2014. These earnings have been and currently are considered to be indefinitely reinvested outside of the U.S. and currently are not subject to such taxes. As the Company operates in over 200 countries and territories throughout the world and due to the complexities in the tax laws and the assumptions that would have to be made, it is not practicable to determine the tax liability that would arise if these earnings were repatriated. | |||||||||||||
In addition, net tax expense of $251 in 2014, net tax expense of $116 in 2013, and net tax benefits of $80 in 2012 recorded directly through equity predominantly include current and future tax impacts related to employee equity compensation and benefit plans. | |||||||||||||
The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. | |||||||||||||
Unrecognized tax benefits activity for the years ended December 31, 2014, 2013 and 2012 is summarized below: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits: | |||||||||||||
Balance, January 1 | $ | 199 | $ | 212 | $ | 176 | |||||||
Increases as a result of tax positions taken during the current year | 23 | 23 | 34 | ||||||||||
Decreases of tax positions taken during prior years | (11 | ) | (52 | ) | (6 | ) | |||||||
Increases of tax positions taken during prior years | 32 | 37 | 10 | ||||||||||
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations | (10 | ) | (22 | ) | (3 | ) | |||||||
Effect of foreign currency rate movements | (15 | ) | 1 | 1 | |||||||||
Balance, December 31 | $ | 218 | $ | 199 | $ | 212 | |||||||
If all of the unrecognized tax benefits for 2014 above were recognized, approximately $195 would impact the effective tax rate. Although it is possible that the amount of unrecognized benefits with respect to our uncertain tax positions will increase or decrease in the next 12 months, the Company does not expect material changes. | |||||||||||||
The Company recognized approximately $4, $5 and $5 of interest expense related to the above unrecognized tax benefits within income tax expense in 2014, 2013 and 2012, respectively. The Company had accrued interest of approximately $24, $24 and $19 as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company and its subsidiaries file U.S. federal income tax returns as well as income tax returns in many state and foreign jurisdictions. All U.S. federal income tax returns through December 31, 2009 have been audited by, and settled with, the IRS. With a few exceptions, the Company is no longer subject to U.S. state and local income tax examinations for income tax returns through December 31, 2009. In addition, the Company has subsidiaries in various foreign jurisdictions that have statutes of limitations for tax audits generally ranging from three to six years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||||||||||||||||||||||
For the Year Ended 2014 | For the Year Ended 2013 | For the Year Ended 2012 | |||||||||||||||||||||||||||||||
Net income attributable to Colgate-Palmolive Company | Shares | Per | Net income attributable to Colgate-Palmolive Company | Shares | Per | Net income attributable to Colgate-Palmolive Company | Shares | Per | |||||||||||||||||||||||||
(millions) | Share | (millions) | Share | (millions) | Share | ||||||||||||||||||||||||||||
Basic EPS | 2,180 | 915.1 | $ | 2.38 | 2,241 | 930.8 | $ | 2.41 | 2,472 | 952.1 | $ | 2.6 | |||||||||||||||||||||
Stock options and restricted stock units | 9.2 | 9.1 | 8.1 | ||||||||||||||||||||||||||||||
Diluted EPS | $ | 2,180 | 924.3 | $ | 2.36 | $ | 2,241 | 939.9 | $ | 2.38 | $ | 2,472 | 960.2 | $ | 2.57 | ||||||||||||||||||
Basic earnings per common share is computed by dividing net income available for common stockholders by the weighted-average number of shares of common stock outstanding for the period. | |||||||||||||||||||||||||||||||||
Diluted earnings per common share is computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and restricted stock units. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 1,729,511, 1,785,032 and 3,504,608, respectively. As of December 31, 2014, 2013 and 2012, the average number of restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 2,311, 3,709, and 2,252, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Commitments and Contingencies | |
Minimum rental commitments under noncancellable operating leases, primarily for office and warehouse facilities, are $201 in 2015, $170 in 2016, $148 in 2017, $138 in 2018, $126 in 2019 and $280 thereafter. Rental expense amounted to $234 in 2014, $232 in 2013 and $228 in 2012. 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 $774 at December 31, 2014. | ||
As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, environmental and tax matters and consumer class actions. Management proactively reviews and monitors the Company’s exposure to, and the impact of, environmental matters. The Company is party to various environmental matters and, as such, may be responsible for all or a portion of the cleanup, restoration and post-closure monitoring of several sites. | ||
The Company establishes accruals for loss contingencies when it has determined that a loss is probable and that the amount of loss, or range of loss, can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. | ||
The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. For those matters disclosed below, the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $200 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the matters in question. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. | ||
Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular quarter or year. | ||
Brazilian Matters | ||
There are certain tax and civil proceedings outstanding, as described below, related to the Company’s 1995 acquisition of the Kolynos oral care business from Wyeth (the “Seller”). | ||
The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, at the current exchange rate, are approximately $107. The Company has been disputing the disallowances by appealing the assessments within the internal revenue authority’s appellate process since October 2001. Numerous appeals are currently pending at the administrative level. In the event the Company is ultimately unsuccessful, further appeals are available within the Brazilian federal courts. The Company intends to challenge these assessments vigorously. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel and other advisors, that the disallowances are without merit and that the Company should ultimately prevail on appeal, if necessary, in the Brazilian federal courts. | ||
In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the Company should ultimately prevail in this action. The Company intends to challenge this action vigorously. | ||
In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest and penalties of approximately $66, at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company has been disputing the assessment within the internal revenue authority’s administrative appeals process. In November 2014, the Superior Chamber of Administrative Tax Appeals denied the Company’s most recent appeal. Further appeals are available both at the administrative level and within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the tax assessment is without merit and that the Company should ultimately prevail on appeal, if not at the administrative level, in the Brazilian federal courts. The Company intends to challenge this assessment vigorously. | ||
Competition Matters | ||
European Competition Matters | ||
Certain of the Company’s subsidiaries in Europe are subject to investigations, and in some cases, fines by governmental authorities in a number of European countries related to potential competition law violations. The Company understands that substantially all of these matters also involve other consumer goods companies and/or retail customers. The status of the various pending matters is discussed below. | ||
Fines have been imposed on the Company in the following matters, although, as noted below, the Company has appealed each of these fines: | ||
▪ | In December 2009, the Swiss competition law authority imposed a fine of $6 on the Company’s GABA subsidiary for alleged violations of restrictions on parallel imports into Switzerland, which the Company appealed. In January 2014, this appeal was denied. The Company is appealing before the Swiss Supreme Court. | |
▪ | In January 2010, the Company’s Spanish subsidiary was fined $3 by the Spanish competition law authority on the basis that it had entered an agreement with other shower gel manufacturers regarding product downsizing, which the Company contested. The fine was annulled by the Court of Appeal in July 2013. The Spanish competition law authority is appealing this judgment before the Spanish Supreme Court. | |
▪ | In December 2010, the Italian competition law authority found that 16 consumer goods companies, including the Company’s Italian subsidiary, exchanged competitively sensitive information in the cosmetics sector, for which the Company’s Italian subsidiary was fined $3. The Company is appealing the fine in the Italian courts. | |
▪ | In March 2012, the French competition law authority found that three pet food producers, including the Company’s Hill’s French subsidiary, had violated competition law, for which it imposed a fine of $7 on the Company’s Hill’s French subsidiary for alleged restrictions on exports from France, which the Company contested. In October 2013, the Company’s appeal was denied. The Company is appealing before the French Supreme Court. | |
▪ | In December 2014, the French competition law authority found that 13 consumer goods companies, including the Company’s French subsidiary, exchanged competitively sensitive information related to the French home care and personal care sectors, for which the Company’s French subsidiary was fined $57. In addition, as a result of the Company’s acquisition of the Sanex personal care business in 2011 from Unilever N.V. and Unilever PLC (together with Unilever N.V., “Unilever”) pursuant to a Business and Share Sale and Purchase Agreement (the “Sanex Purchase Agreement”), the French competition law authority found that the Company’s French subsidiary, along with another consumer goods company, are jointly and severally liable for fines of $25 assessed against Sara Lee’s French subsidiary. The Company is seeking indemnification for the $25 fine from Unilever under the Sanex Purchase Agreement. The Company is appealing both fines in the French courts. | |
Currently, formal claims of violations or statements of objections are pending against the Company as follows: | ||
▪ | In October 2012, the Belgian competition law authority alleged that 11 branded goods companies, including the Company’s Belgian subsidiary, assisted retailers to coordinate their retail prices on the Belgian market. The defendants have initiated preliminary talks with the authority regarding a possible settlement. | |
▪ | In July 2014, the Greek competition law authority issued a statement of objections alleging the Company and its Greek subsidiary restricted parallel imports into Greece. The Company has responded to this statement of objections. | |
Australian Competition Matter | ||
In December 2013, the Australian competition law authority instituted civil proceedings in the Sydney registry of the Federal Court of Australia alleging that three consumer goods companies, including the Company’s Australian subsidiary, a retailer and a former employee of the Company’s Australian subsidiary violated the Australian competition law by coordinating the launching and pricing of ultra-concentrated laundry detergents. The Company is defending these proceedings. Since the amount of any potential losses from these proceedings currently cannot be estimated, the range of reasonably possible losses in excess of accrued liabilities disclosed above does not include any amount relating to these proceedings. | ||
The Company’s policy is to comply with antitrust and competition laws and, if a violation of any such laws is found, to take appropriate remedial action and to cooperate fully with any related governmental inquiry. Competition and antitrust law investigations often continue for several years and can result in substantial fines for violations that are found. While the Company cannot predict the final financial impact of these competition law issues, as these matters may change, the Company evaluates developments in these matters quarterly and accrues liabilities as and when appropriate. | ||
Talcum Powder Matters | ||
The Company is a defendant in a number of civil actions alleging that certain talc products it sold prior to 1996 were contaminated with asbestos. Since 2008, the Company has challenged and intends to continue to challenge these cases vigorously, and although there can be no assurances, it believes, based on the advice of its legal counsel, that they are without merit and the Company should ultimately prevail. Currently, there are 13 single plaintiff cases pending against the Company in state courts in California, Delaware, Illinois, Maryland, New Jersey and New York and one case pending in federal court in North Carolina. 19 similar cases previously filed against the Company have been dismissed and final judgment entered in favor of the Company. To date, there have been no findings of liability against the Company in any of these cases. Since the amount of any potential losses from these cases currently cannot be estimated, the range of reasonably possible losses in excess of accrued liabilities disclosed above does not include any amount relating to these cases. | ||
Some of these cases are currently expected to go to trial in 2015, although the Company may succeed in dismissing or otherwise resolving some or all of them prior to trial. As stated above, while the Company believes, based on the advice of its legal counsel, that it should ultimately prevail, there can be no assurances of the outcome at trial. | ||
ERISA Matters | ||
In July 2014, the Colgate-Palmolive Company Employees’ Retirement Income Plan (the “Plan”) settled a putative class action alleging improper calculation of lump sum distributions and failure to satisfy minimum accrual requirements under the Plan. Under the settlement agreement, the Plan agreed to pay approximately $40 after application of certain offsets to resolve the litigation. |
Venezuela
Venezuela | 12 Months Ended |
Dec. 31, 2014 | |
Foreign Currency [Abstract] | |
Venezuela | Venezuela |
Venezuela has been designated hyper-inflationary and, therefore, the functional currency for the Company’s Venezuelan subsidiary (“CP Venezuela”) is the U.S. dollar and Venezuelan currency fluctuations are reported in income. | |
During the first quarter of 2014, the Venezuelan government enacted several changes to Venezuela’s foreign exchange regime, introducing a multi-tier foreign exchange system creating three exchange rate mechanisms available to convert Venezuelan bolivares to U.S. dollars. Although the official exchange rate, as determined by the National Center for Foreign Commerce (“CENCOEX”), remained at 6.30 bolivares per dollar, the exchange rate for foreign investments moved to the rate available on the SICAD I (Supplementary System for the Administration of Foreign Currency) currency market. The Venezuelan government also introduced an alternative currency market known as SICAD II. The Company remeasures the financial statements of CP Venezuela at the end of each month at the rate at which it expects to remit future dividends which, based on the advice of legal counsel, is the SICAD I rate. | |
During the year ended December 31, 2014, the Company incurred net pretax losses of $327 ($214 aftertax losses or $0.23 per diluted common share) related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets at the quarter-end SICAD I rate for each of the first three quarters of 2014. The SICAD I rate did not revalue during the fourth quarter of 2014 and remained at 12.00 bolivares per dollar as of December 31, 2014. Included in the net remeasurement losses during 2014 were charges related to the devaluation-protected bonds issued by the Venezuelan government and held by CP Venezuela. Because the official exchange rate remained at 6.30 bolivares per dollar, the devaluation-protected bonds did not revalue at the rate available on the SICAD I currency market but remained at the official exchange rate which resulted in an impairment in the fair value of the bonds. | |
CP Venezuela continues to be able to settle certain of its U.S. dollar obligations for imported materials at the official rate of 6.30 bolivares per dollar and records the gains related to such transactions when the funds are authorized by CENCOEX and the liabilities are paid. | |
During the year ended December 31, 2013, the Company incurred a pretax loss of $172 ($111 aftertax loss or $0.12 per diluted common share) related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets at the date of the devaluation that changed the official exchange rate from 4.30 to 6.30 bolivares per dollar. | |
For the year ended December 31, 2014, CP Venezuela represented approximately 3% of the Company’s consolidated Net sales. At December 31, 2014, CP Venezuela’s local currency-denominated net monetary asset position, which would be subject to remeasurement in the event of further changes in the SICAD I rate, was $549. This amount includes the devaluation-protected bonds issued by the Venezuelan government. CP Venezuela’s local currency-denominated non-monetary assets were $310 at December 31, 2014 and included $235 of fixed assets that could be subject to impairment if CP Venezuela is not able to implement further price increases to offset the impacts of continued high inflation or further devaluations, or if it does not have sufficient access to U.S. dollars to fund imports. | |
Additional devaluations or the imposition of additional or more stringent controls on foreign currency exchange, pricing, payments, profits or imports or other governmental actions or continued or increased labor unrest would further negatively affect the Company’s business in Venezuela and the Company’s ability to effectively make key operational decisions in regard to its Venezuelan operations, both of which could result in an impairment of the Company’s investment in CP Venezuela. At December 31, 2014, the Company’s total investment in CP Venezuela was $955, which included intercompany payables of CP Venezuela. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | Segment Information | ||||||||||||
The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia. | |||||||||||||
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. | |||||||||||||
The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock unit 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 to measure the underlying performance of the operating segments. | |||||||||||||
Approximately 80% of the Company’s Net sales are generated from markets outside the U.S., with over 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). | |||||||||||||
In 2014, Corporate Operating profit (loss) includes charges of $286 related to the 2012 Restructuring Program, charges of $327 related to the 2014 Venezuela Remeasurements, charges of $41 for European competition law matters and costs of $4 related to the sale of land in Mexico. In 2013, Corporate Operating profit (loss) included charges of $371 related to the 2012 Restructuring Program, a charge of $172 related to the 2013 Venezuela Remeasurement, a charge of $23 for a European competition law matter and costs of $18 related to the sale of land in Mexico. In 2012, Corporate Operating profit (loss) included charges of $89 related to the 2012 Restructuring Program, costs of $24 related to the sale of land in Mexico and costs of $21 associated with various business realignment and other cost-saving initiatives. The various business realignment and other cost-saving initiatives included the integration of Sanex, the right-sizing of the Colombia business and the closing of an oral care facility in Mississauga, Canada and a Hill’s facility in Los Angeles, California. For further information regarding the 2012 Restructuring Program, refer to Note 4, Restructuring and Related Implementation Charges. For further information regarding Venezuela, refer to Note 14, Venezuela. For further information regarding the European competition law matters, refer to Note 13, Commitments and Contingencies. For further information regarding the sale of land in Mexico, refer to Note 3, Acquisitions and Divestitures. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America(1) | $ | 3,124 | $ | 3,072 | $ | 2,971 | |||||||
Latin America | 4,769 | 5,012 | 5,032 | ||||||||||
Europe/South Pacific | 3,406 | 3,396 | 3,417 | ||||||||||
Asia | 2,515 | 2,472 | 2,264 | ||||||||||
Africa/Eurasia | 1,208 | 1,257 | 1,241 | ||||||||||
Total Oral, Personal and Home Care | 15,022 | 15,209 | 14,925 | ||||||||||
Pet Nutrition(2) | 2,255 | 2,211 | 2,160 | ||||||||||
Total Net sales | $ | 17,277 | $ | 17,420 | $ | 17,085 | |||||||
_________ | |||||||||||||
(1) | Net sales in the U.S. for Oral, Personal and Home Care were $2,835, $2,771 and $2,669 in 2014, 2013 and 2012, respectively. | ||||||||||||
(2) | Net sales in the U.S. for Pet Nutrition were $1,149, $1,116 and $1,052 in 2014, 2013 and 2012, respectively. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating profit | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 926 | $ | 927 | $ | 810 | |||||||
Latin America | 1,279 | 1,385 | 1,454 | ||||||||||
Europe/South Pacific | 877 | 805 | 747 | ||||||||||
Asia | 736 | 698 | 619 | ||||||||||
Africa/Eurasia | 235 | 268 | 267 | ||||||||||
Total Oral, Personal and Home Care | 4,053 | 4,083 | 3,897 | ||||||||||
Pet Nutrition | 592 | 563 | 589 | ||||||||||
Corporate | (1,088 | ) | (1,090 | ) | (597 | ) | |||||||
Total Operating profit | $ | 3,557 | $ | 3,556 | $ | 3,889 | |||||||
2014 | 2013 | 2012 | |||||||||||
Capital expenditures | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 136 | $ | 54 | $ | 43 | |||||||
Latin America | 205 | 235 | 237 | ||||||||||
Europe/South Pacific | 78 | 74 | 71 | ||||||||||
Asia | 147 | 123 | 88 | ||||||||||
Africa/Eurasia | 14 | 11 | 16 | ||||||||||
Total Oral, Personal and Home Care | 580 | 497 | 455 | ||||||||||
Pet Nutrition | 40 | 45 | 37 | ||||||||||
Corporate | 137 | 128 | 73 | ||||||||||
Total Capital expenditures | $ | 757 | $ | 670 | $ | 565 | |||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 43 | $ | 51 | $ | 50 | |||||||
Latin America | 93 | 93 | 91 | ||||||||||
Europe/South Pacific | 84 | 85 | 85 | ||||||||||
Asia | 78 | 72 | 70 | ||||||||||
Africa/Eurasia | 10 | 11 | 11 | ||||||||||
Total Oral, Personal and Home Care | 308 | 312 | 307 | ||||||||||
Pet Nutrition | 52 | 51 | 50 | ||||||||||
Corporate | 82 | 76 | 68 | ||||||||||
Total Depreciation and amortization | $ | 442 | $ | 439 | $ | 425 | |||||||
2014 | 2013 | 2012 | |||||||||||
Identifiable assets | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 2,326 | $ | 2,301 | $ | 2,157 | |||||||
Latin America | 3,693 | 4,202 | 4,288 | ||||||||||
Europe/South Pacific | 3,836 | 3,978 | 3,649 | ||||||||||
Asia | 1,903 | 1,794 | 1,608 | ||||||||||
Africa/Eurasia | 510 | 557 | 561 | ||||||||||
Total Oral, Personal and Home Care | 12,268 | 12,832 | 12,263 | ||||||||||
Pet Nutrition | 1,051 | 1,087 | 1,045 | ||||||||||
Corporate(3) | 140 | 66 | 86 | ||||||||||
Total Identifiable assets(4) | $ | 13,459 | $ | 13,985 | $ | 13,394 | |||||||
____________ | |||||||||||||
(3) | In 2014, Corporate identifiable assets primarily consist of derivative instruments (62%) and investments in equity securities (22%). In 2013, Corporate identifiable assets primarily consist of derivative instruments (32%) and investments in equity securities (41%). In 2012, Corporate identifiable assets primarily consist of derivative instruments (67%) and investments in equity securities (28%). | ||||||||||||
(4) | Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $8,086, $8,248 and $8,066 in 2014, 2013 and 2012, respectively. |
Supplemental_Income_Statement_
Supplemental Income Statement Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||
Supplemental Income Statement Information | Supplemental Income Statement Information | ||||||||||||
Other (income) expense, net | 2014 | 2013 | 2012 | ||||||||||
Amortization of intangible assets | $ | 32 | $ | 32 | $ | 31 | |||||||
2012 Restructuring Program | 195 | 202 | 81 | ||||||||||
Venezuela remeasurement charges | 327 | 172 | — | ||||||||||
Charges for European competition law matters | 41 | 23 | — | ||||||||||
Costs related to the sale of land in Mexico | — | 3 | — | ||||||||||
Business realignment and other cost-saving initiatives | — | — | 2 | ||||||||||
Equity (income) | (7 | ) | (5 | ) | (7 | ) | |||||||
Other, net | (18 | ) | (5 | ) | 6 | ||||||||
Total Other (income) expense, net | $ | 570 | $ | 422 | $ | 113 | |||||||
Interest (income) expense, net | 2014 | 2013 | 2012 | ||||||||||
Interest incurred | $ | 134 | $ | 119 | $ | 81 | |||||||
Interest capitalized | (4 | ) | (3 | ) | (1 | ) | |||||||
Interest income | (106 | ) | (125 | ) | (65 | ) | |||||||
Total Interest (income) expense, net | $ | 24 | $ | (9 | ) | $ | 15 | ||||||
2014 | 2013 | 2012 | |||||||||||
Research and development | $ | 277 | $ | 267 | $ | 259 | |||||||
Advertising | $ | 1,784 | $ | 1,891 | $ | 1,792 | |||||||
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information | ||||||||
Inventories by major class are as follows: | |||||||||
Inventories | 2014 | 2013 | |||||||
Raw materials and supplies | $ | 349 | $ | 340 | |||||
Work-in-process | 55 | 60 | |||||||
Finished goods | 978 | 1,025 | |||||||
Total Inventories | $ | 1,382 | $ | 1,425 | |||||
Inventories valued under LIFO amounted to $287 and $289 at December 31, 2014 and 2013, respectively. The excess of current cost over LIFO cost at the end of each year was $18 and $37, respectively. The liquidations of LIFO inventory quantities had no material effect on income in 2014, 2013 and 2012. | |||||||||
Property, plant and equipment, net | 2014 | 2013 | |||||||
Land | $ | 250 | $ | 254 | |||||
Buildings | 1,660 | 1,625 | |||||||
Manufacturing machinery and equipment | 5,220 | 5,220 | |||||||
Other equipment | 1,255 | 1,231 | |||||||
8,385 | 8,330 | ||||||||
Accumulated depreciation | (4,305 | ) | (4,247 | ) | |||||
Total Property, plant and equipment, net | $ | 4,080 | $ | 4,083 | |||||
Other accruals | 2014 | 2013 | |||||||
Accrued advertising and coupon redemption | $ | 550 | $ | 676 | |||||
Accrued payroll and employee benefits | 332 | 361 | |||||||
Accrued taxes other than income taxes | 122 | 131 | |||||||
Restructuring accrual | 114 | 142 | |||||||
Pension and other retiree benefits | 89 | 94 | |||||||
Accrued interest | 28 | 27 | |||||||
Derivatives | 5 | 11 | |||||||
Other | 677 | 647 | |||||||
Total Other accruals | $ | 1,917 | $ | 2,089 | |||||
Other liabilities | 2014 | 2013 | |||||||
Pension and other retiree benefits | $ | 1,886 | $ | 1,387 | |||||
Restructuring accrual | 78 | 16 | |||||||
Other | 259 | 274 | |||||||
Total Other liabilities | $ | 2,223 | $ | 1,677 | |||||
Supplemental_Comprehensive_Inc
Supplemental Comprehensive Income (Loss) Information | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Supplemental Comprehensive Income (Loss) Information | Supplemental Other Comprehensive Income (Loss) Information | |||||||||||||||||||||
Other Comprehensive Income (Loss) components attributable to Colgate-Palmolive Company before tax and net of tax during the years ended December 31 were as follows: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | |||||||||||||||||
Cumulative translation adjustments | $ | (663 | ) | $ | (681 | ) | $ | (188 | ) | $ | (163 | ) | $ | 18 | $ | (20 | ) | |||||
Pension and other benefits: | ||||||||||||||||||||||
Net actuarial gain (loss) and prior | (580 | ) | (374 | ) | 295 | 189 | (317 | ) | (207 | ) | ||||||||||||
service costs arising during the | ||||||||||||||||||||||
period | ||||||||||||||||||||||
Amortization of net actuarial loss, | 67 | 45 | 111 | 70 | 101 | 62 | ||||||||||||||||
transition and prior service costs(1) | ||||||||||||||||||||||
Curtailment loss - unamortized | — | — | 91 | 59 | — | — | ||||||||||||||||
prior service costs(1) | ||||||||||||||||||||||
Retirement Plan and other retiree benefit | (513 | ) | (329 | ) | 497 | 318 | (216 | ) | (145 | ) | ||||||||||||
adjustments | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Unrealized gains (losses) on available- | (341 | ) | (222 | ) | (113 | ) | (73 | ) | 28 | 18 | ||||||||||||
for-sale securities(2) | ||||||||||||||||||||||
Reclassification of (gains) losses | 267 | 174 | 133 | 86 | — | — | ||||||||||||||||
into net earnings on available- | ||||||||||||||||||||||
for-sale securities(3) | ||||||||||||||||||||||
Gains (losses) on available-for-sale | (74 | ) | (48 | ) | 20 | 13 | 28 | 18 | ||||||||||||||
securities | ||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||
Unrealized gains (losses) on cash flow | 9 | 6 | 20 | 13 | 13 | 8 | ||||||||||||||||
hedges | ||||||||||||||||||||||
Reclassification of (gains) losses | (5 | ) | (4 | ) | (17 | ) | (11 | ) | (11 | ) | (7 | ) | ||||||||||
into net earnings on cash flow | ||||||||||||||||||||||
hedges(4) | ||||||||||||||||||||||
Gains (losses) on cash flow hedges | 4 | 2 | 3 | 2 | 2 | 1 | ||||||||||||||||
Total Other comprehensive income (loss) | $ | (1,246 | ) | $ | (1,056 | ) | $ | 332 | $ | 170 | $ | (168 | ) | $ | (146 | ) | ||||||
_________ | ||||||||||||||||||||||
(1) | These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. | |||||||||||||||||||||
(2) | For the year ended December 31, 2014, these amounts included pretax net losses of $324 related to the remeasurement of the bolivar denominated fixed interest rate bonds and the devaluation-protected bonds in Venezuela. | |||||||||||||||||||||
For the year ended December 31, 2013, these amounts included pretax losses of $133 related only to the remeasurement of the bolivar denominated fixed interest rate bonds in Venezuela as a result of the devaluation in the first quarter of 2013. No remeasurement charge was required on the devaluation-protected bonds in the first quarter of 2013 since the official exchange rate changed from 4.30 to 6.30 bolivares per dollar and the devaluation-protected bonds revalued to the official exchange rate. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | ||||||||||||||||||||||
(3) | Represents reclassification of losses on the Venezuela bonds into Other (income) expense, net due to an impairment in the fair value of the bonds as a result of the effective devaluations in the first and third quarters of 2014 and the devaluation in 2013. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | |||||||||||||||||||||
(4) | These (gains) losses are reclassified into Cost of sales. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | |||||||||||||||||||||
There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) 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 and losses on available-for-sale securities. At December 31, 2014 and 2013, Accumulated other comprehensive income (loss) consisted primarily of aftertax unrecognized pension and other retiree benefit costs of $1,064 and $735, respectively, and cumulative foreign currency translation adjustments of $2,453 and $1,772, respectively. Foreign currency translation adjustments in 2014 primarily reflect losses from the Euro, the Brazilian real, the Mexican peso, and the Swiss franc. In 2013, foreign currency translation adjustments primarily reflect gains from the Mexican peso, the Euro and the Swiss franc, which were offset by losses from the Brazilian real, the Australian dollar and the Argentine peso. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
Total | First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014 | |||||||||||||||||||||
Net sales | $ | 17,277 | $ | 4,325 | $ | 4,352 | $ | 4,379 | $ | 4,221 | |||||||||||
Gross profit | 10,109 | (1) | 2,524 | (3) | 2,552 | (5) | 2,558 | (7) | 2,475 | (9) | |||||||||||
Net income including noncontrolling interests | 2,339 | (2) | 432 | (4) | 661 | (6) | 580 | (8) | 666 | (10) | |||||||||||
Net income attributable to Colgate-Palmolive Company | 2,180 | (2) | 388 | (4) | 622 | (6) | 542 | (8) | 628 | (10) | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | 2.38 | (2) | 0.42 | (4) | 0.68 | (6) | 0.59 | (8) | 0.69 | (10) | |||||||||||
Diluted | 2.36 | (2) | 0.42 | (4) | 0.67 | (6) | 0.59 | (8) | 0.68 | (10) | |||||||||||
2013 | |||||||||||||||||||||
Net sales | $ | 17,420 | $ | 4,315 | $ | 4,346 | $ | 4,398 | $ | 4,361 | |||||||||||
Gross profit | 10,201 | (11) | 2,515 | (13) | 2,534 | (15) | 2,585 | (17) | 2,567 | (19) | |||||||||||
Net income including noncontrolling interests | 2,410 | (12) | 506 | (14) | 604 | (16) | 699 | (18) | 601 | (20) | |||||||||||
Net income attributable to Colgate-Palmolive Company | 2,241 | (12) | 460 | (14) | 561 | (16) | 656 | (18) | 564 | (20) | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | 2.41 | (12) | 0.49 | (14) | 0.6 | (16) | 0.71 | (18) | 0.61 | (20) | |||||||||||
Diluted | 2.38 | (12) | 0.48 | (14) | 0.6 | (16) | 0.7 | (18) | 0.6 | (20) | |||||||||||
____________ | |||||||||||||||||||||
Note: | Basic and diluted earnings per share are computed independently for each quarter and the year-to-date period presented. Accordingly, the sum of the quarterly earnings per common share may not necessarily equal the earnings per share for the year-to-date period. | ||||||||||||||||||||
(1) | Gross profit for the full year of 2014 includes $29 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(2) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
(3) | Gross profit for the first quarter of 2014 includes $10 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(4) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2014 include $73 of aftertax charges related to the 2012 Restructuring Program, a $174 aftertax charge related to the 2014 Venezuela Remeasurements and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(5) | Gross profit for the second quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program and $2 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(6) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2014 include $53 of aftertax charges related to the 2012 Restructuring Program and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(7) | Gross profit for the third quarter of 2014 includes $7 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(8) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program, a $40 aftertax charge related to the 2014 Venezuela Remeasurements, an $11 charge for a European competition law matter, $1 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
(9) | Gross profit for the fourth quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program. | ||||||||||||||||||||
(10) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program and a $30 charge for a European competition law matter. | ||||||||||||||||||||
(11) | Gross profit for the full year of 2013 includes $32 of charges related to the 2012 Restructuring Program and $15 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(12) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(13) | Gross profit for the first quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(14) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2013 include $52 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(15) | Gross profit for the second quarter of 2013 includes $10 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(16) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2013 include $79 of aftertax charges related to the 2012 Restructuring Program, an $18 charge for a European competition law matter and $4 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(17) | Gross profit for the third quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $3 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(18) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2013 include $22 of aftertax charges related to the 2012 Restructuring Program and $2 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(19) | Gross profit for the fourth quarter of 2013 includes $6 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(20) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2013 include $125 of aftertax charges related to the 2012 Restructuring Program, a $5 charge for a European competition law matter and $3 of aftertax costs related to the sale of land in Mexico. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Allowance for doubtful accounts and estimated returns | $ | 67 | $ | — | $ | — | $ | 13 | $ | 54 | |||||||||||
Valuation allowance for deferred tax assets | $ | 6 | $ | — | $ | — | $ | 6 | $ | — | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful accounts and estimated returns | $ | 61 | $ | 15 | $ | — | $ | 9 | $ | 67 | |||||||||||
Valuation allowance for deferred tax assets | $ | 1 | $ | 6 | $ | — | $ | 1 | $ | 6 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Allowance for doubtful accounts and estimated returns | $ | 49 | $ | 18 | $ | — | $ | 6 | $ | 61 | |||||||||||
Valuation allowance for deferred tax assets | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. The Company’s investments in consumer products companies with interests ranging between 20% and 50%, where the Company has significant influence over the investee, 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, 2014 and 2013, equity method investments included in Other assets in the Consolidated Balance Sheets were $31 and $27, respectively. Unrelated third parties hold the remaining ownership interests in these investments. Investments with less than a 20% interest are accounted for using the cost method. | |
Use of Estimates | 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 Company’s assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairments, 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 | 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 continuing promotional programs. Current promotional programs, such as product listing allowances and co-operative advertising arrangements, are recorded in the period incurred. Continuing promotional programs are predominantly consumer coupons and volume-based sales incentive arrangements with trade customers. The redemption cost of consumer coupons is based on historical redemption experience and is recorded when coupons are distributed. Volume-based incentives offered to trade customers are based on the estimated cost of the program and are recorded as products are sold. | |
Shipping and Handling Costs | Shipping and Handling Costs |
Shipping and handling costs are classified as Selling, general and administrative expenses and were $1,326, $1,304 and $1,262 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Marketing Costs | Marketing Costs |
The Company markets its products through advertising and other promotional activities. Advertising costs are included in Selling, general and administrative expenses and are expensed as incurred. Certain consumer and trade promotional programs, such as consumer coupons, are recorded as a reduction of sales. | |
Cash and Cash equivalents | Cash and Cash Equivalents |
The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | |
Inventories | Inventories |
Inventories are stated at the lower of cost or market. The cost of approximately 80% of inventories is determined using the first-in, first-out (“FIFO”) method. The cost of all other inventories, in the U.S. and Mexico, is determined using the last-in, first-out (“LIFO”) method. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses. | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles |
Goodwill and indefinite life intangible assets, such as the Company’s global brands, are subject to impairment tests at least annually. These tests were performed and did not result in an impairment charge. Other intangible assets with finite lives, such as local brands and trademarks, customer relationships and non-compete agreements, are amortized over their estimated useful lives, generally ranging from 5 to 40 years. Amortization expense related to intangible assets is included in Other (income) expense, net, which is included in Operating profit. | |
Income Taxes | Income Taxes |
The provision for income taxes is determined using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect at the time such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Provision is made currently for taxes payable on remittances of overseas earnings; no provision is made for taxes on overseas retained earnings that are deemed to be indefinitely reinvested. | |
The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. The Company recognizes interest expense and penalties related to unrecognized tax benefits within income tax expense. | |
Financial Instruments | Financial Instruments |
Derivative instruments are recorded as assets and liabilities at estimated fair value based on available market information. The Company’s derivative instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recognized in earnings each period. For cash flow hedges, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) and are recognized in earnings when the offsetting effect of the hedged item is also recognized in earnings. For hedges of the net investment in foreign subsidiaries, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) to offset the change in the value of the net investment being hedged. Cash flows related to hedges are classified in the same category as the cash flows from the hedged item in the Consolidated Statements of Cash Flows. | |
The Company may also enter into certain foreign currency and interest rate instruments that economically hedge certain of its risks but do not qualify for hedge accounting. Changes in fair value of these derivative instruments, based on quoted market prices, are recognized in earnings each period. The Company’s derivative instruments and other financial instruments are more fully described in Note 7, Fair Value Measurements and Financial Instruments along with the related fair value measurement considerations. | |
Stock-Based Compensation | Stock-Based Compensation |
The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units, based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of stock option awards. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model are more fully described in Note 8, Capital Stock and Stock-Based Compensation Plans. | |
Currency Translation | Currency Translation |
The assets and liabilities of foreign subsidiaries, other than those operating in highly inflationary environments, are translated into U.S. dollars at year-end exchange rates with resulting translation gains and losses accumulated in a separate component of shareholders’ equity. Income and expense items are translated into U.S. dollars at average rates of exchange prevailing during the year. | |
For subsidiaries operating in highly inflationary environments (currently, Venezuela), local currency-denominated non-monetary assets, including inventories, goodwill and property, plant and equipment, are remeasured at their historical exchange rates, while local currency-denominated monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these operations are included in Net income attributable to Colgate-Palmolive Company. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) issued their final converged standard on revenue recognition. The standard, issued as Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” by the FASB, provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures which are significantly more comprehensive than those in existing revenue standards. This new guidance is effective for the Company beginning January 1, 2017, with no early adoption permitted. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. While the Company is currently assessing the impact of the new standard, it does not expect this new guidance to have a material impact on its Consolidated Financial Statements. | |
On April 10, 2014, the FASB issued ASU No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU No. 2014-08 changes the criteria for reporting discontinued operations and modifies related disclosure requirements. The new guidance is effective for the Company on a prospective basis beginning January 1, 2015. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Reclassifications | Reclassifications |
Certain prior year amounts have been reclassified to conform to the current year presentation. Additionally, Other current assets in the December 31, 2013 Consolidated Balance Sheet were adjusted to include certain non-income tax receivables which were previously included in Other accruals. |
Nature_of_Operations_Tables
Nature of Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Percentage of worldwide sales | The Company’s principal classes of products accounted for the following percentages of worldwide Net sales for the past three years: | |||||||||
2014 | 2013 | 2012 | ||||||||
Oral Care | 46 | % | 46 | % | 44 | % | ||||
Personal Care | 21 | % | 21 | % | 22 | % | ||||
Home Care | 20 | % | 20 | % | 21 | % | ||||
Pet Nutrition | 13 | % | 13 | % | 13 | % | ||||
Total | 100 | % | 100 | % | 100 | % |
Restructuring_and_Related_Impl1
Restructuring and Related Implementation Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Schedule of Restructuring and Related Costs | For the years ended December 31, 2014, 2013 and 2012, restructuring and implementation-related charges are reflected in the Consolidated Statements of Income as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Cost of sales | $ | 29 | $ | 32 | $ | 2 | |||||||||||||||
Selling, general and administrative expenses | 62 | 137 | 6 | ||||||||||||||||||
Other (income) expense, net | 195 | 202 | 81 | ||||||||||||||||||
Total 2012 Restructuring Program charges, pretax | $ | 286 | $ | 371 | $ | 89 | |||||||||||||||
Total 2012 Restructuring Program charges, aftertax | $ | 208 | $ | 278 | $ | 70 | |||||||||||||||
Schedule of Percent Of Total Restructuring Charges Related To Segment for the period | Total charges incurred for the 2012 Restructuring Program relate to initiatives undertaken by the following reportable operating segments: | ||||||||||||||||||||
Program-to-date | |||||||||||||||||||||
2014 | 2013 | 2012 | Accumulated Charges | ||||||||||||||||||
North America | 11 | % | 11 | % | 2 | % | 10 | % | |||||||||||||
Latin America | 4 | % | 4 | % | — | % | 4 | % | |||||||||||||
Europe/South Pacific | 20 | % | 28 | % | 55 | % | 28 | % | |||||||||||||
Asia | 3 | % | — | % | — | % | 1 | % | |||||||||||||
Africa/Eurasia | 3 | % | 7 | % | 2 | % | 5 | % | |||||||||||||
Hill’s Pet Nutrition | 10 | % | 8 | % | 3 | % | 8 | % | |||||||||||||
Corporate | 49 | % | 42 | % | 38 | % | 44 | % | |||||||||||||
Schedule of Restructuring and Related Costs Incurred to Date | Since the inception of the 2012 Restructuring Program in the fourth quarter of 2012, the Company has incurred pretax cumulative charges of $746 ($556 aftertax) in connection with the implementation of various projects as follows: | ||||||||||||||||||||
Cumulative Charges | |||||||||||||||||||||
as of December 31, 2014 | |||||||||||||||||||||
Employee-Related Costs | $ | 295 | |||||||||||||||||||
Incremental Depreciation | 51 | ||||||||||||||||||||
Asset Impairments | 2 | ||||||||||||||||||||
Other | 398 | ||||||||||||||||||||
Total | $ | 746 | |||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity for the restructuring and implementation-related charges discussed above and the related accruals: | ||||||||||||||||||||
Employee-Related | Incremental | Asset | Other | Total | |||||||||||||||||
Costs | Depreciation | Impairments | |||||||||||||||||||
Balance at January 1, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Charges | 78 | — | — | 11 | 89 | ||||||||||||||||
Cash payments | (1 | ) | — | — | (4 | ) | (5 | ) | |||||||||||||
Charges against assets | — | — | — | — | — | ||||||||||||||||
Foreign exchange | 7 | — | — | (2 | ) | 5 | |||||||||||||||
Balance at December 31, 2012 | $ | 84 | $ | — | $ | — | $ | 5 | $ | 89 | |||||||||||
Charges | 144 | 26 | 1 | 200 | 371 | ||||||||||||||||
Cash payments | (97 | ) | — | — | (72 | ) | (169 | ) | |||||||||||||
Charges against assets | (17 | ) | (26 | ) | (1 | ) | — | (44 | ) | ||||||||||||
Foreign exchange | 2 | — | — | — | 2 | ||||||||||||||||
Other | — | — | — | (91 | ) | (91 | ) | ||||||||||||||
Balance at December 31, 2013 | $ | 116 | $ | — | $ | — | $ | 42 | $ | 158 | |||||||||||
Charges | 73 | 25 | 1 | 187 | 286 | ||||||||||||||||
Cash payments | (95 | ) | — | — | (117 | ) | (212 | ) | |||||||||||||
Charges against assets | (5 | ) | (25 | ) | (1 | ) | — | (31 | ) | ||||||||||||
Foreign exchange | (4 | ) | — | — | (5 | ) | (9 | ) | |||||||||||||
Other | — | — | — | — | — | ||||||||||||||||
Balance at December 31, 2014 | $ | 85 | $ | — | $ | — | $ | 107 | $ | 192 | |||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Goodwill | The net carrying value of Goodwill as of December 31, 2014 and 2013, by segment is as follows: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Oral, Personal and Home Care | |||||||||||||||||||||||||
North America | $ | 352 | $ | 362 | |||||||||||||||||||||
Latin America | 320 | 353 | |||||||||||||||||||||||
Europe/South Pacific | 1,374 | 1,525 | |||||||||||||||||||||||
Asia | 160 | 126 | |||||||||||||||||||||||
Africa/Eurasia | 86 | 93 | |||||||||||||||||||||||
Total Oral, Personal and Home Care | 2,292 | 2,459 | |||||||||||||||||||||||
Pet Nutrition | 15 | 15 | |||||||||||||||||||||||
Total Goodwill | $ | 2,307 | $ | 2,474 | |||||||||||||||||||||
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | Other intangible assets as of December 31, 2014 and 2013 are comprised of the following: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||
Trademarks | $ | 552 | $ | (285 | ) | $ | 267 | $ | 551 | $ | (275 | ) | $ | 276 | |||||||||||
Other finite life intangible assets | 213 | (54 | ) | 159 | 219 | (45 | ) | 174 | |||||||||||||||||
Indefinite life intangible assets | 987 | — | 987 | 1,046 | — | 1,046 | |||||||||||||||||||
Total Other intangible assets | $ | 1,752 | $ | (339 | ) | $ | 1,413 | $ | 1,816 | $ | (320 | ) | $ | 1,496 | |||||||||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facilities (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consists of the following at December 31: | ||||||||||||||
Weighted Average Interest Rate | Maturities | 2014 | 2013 | ||||||||||||
Notes | 1.90% | 2015 | - | 2078 | $ | 5,877 | $ | 5,644 | |||||||
Commercial paper | —% | 2015 | 255 | — | |||||||||||
6,132 | 5,644 | ||||||||||||||
Less: Current portion of long-term debt | 488 | 895 | |||||||||||||
Total | $ | 5,644 | $ | 4,749 | |||||||||||
Schedule of Maturities of Long-term Debt | Excluding commercial paper reclassified as long-term debt, scheduled maturities of long-term debt and capitalized leases outstanding as of December 31, 2014, are as follows: | ||||||||||||||
Years Ended December 31, | |||||||||||||||
2015 | $ | 488 | |||||||||||||
2016 | 263 | ||||||||||||||
2017 | 660 | ||||||||||||||
2018 | 697 | ||||||||||||||
2019 | 498 | ||||||||||||||
Thereafter | 3,271 | ||||||||||||||
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | ||||||||||||||||||||||||
Schedule of Derivative Instruments | The following summarizes the fair value of the Company’s derivative instruments and other financial instruments at December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
Account | Fair Value | Account | Fair Value | |||||||||||||||||||||
Designated derivative instruments | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | ||||||||||||||||||||
Interest rate swap contracts | Other current assets | $ | 1 | $ | 1 | Other accruals | $ | — | $ | — | ||||||||||||||
Interest rate swap contracts | Other assets | 12 | 20 | Other liabilities | 2 | 1 | ||||||||||||||||||
Foreign currency contracts | Other current assets | 21 | 14 | Other accruals | 4 | 8 | ||||||||||||||||||
Foreign currency contracts | Other assets | 60 | — | Other liabilities | — | 10 | ||||||||||||||||||
Commodity contracts | Other current assets | — | — | Other accruals | 1 | — | ||||||||||||||||||
Total designated | $ | 94 | $ | 35 | $ | 7 | $ | 19 | ||||||||||||||||
Derivatives not designated | ||||||||||||||||||||||||
Foreign currency contracts | Other current assets | $ | — | $ | — | Other accruals | $ | — | $ | 3 | ||||||||||||||
Foreign currency contracts | Other assets | 8 | — | Other liabilities | — | — | ||||||||||||||||||
Total not designated | $ | 8 | $ | — | $ | — | $ | 3 | ||||||||||||||||
Total derivative instruments | $ | 102 | $ | 35 | $ | 7 | $ | 22 | ||||||||||||||||
Other financial instruments | ||||||||||||||||||||||||
Marketable securities | Other current assets | $ | 200 | $ | 173 | |||||||||||||||||||
Available-for-sale securities | Other assets | 322 | 685 | |||||||||||||||||||||
Note receivable | Other current assets | 42 | — | |||||||||||||||||||||
Total other financial | $ | 564 | $ | 858 | ||||||||||||||||||||
instruments | ||||||||||||||||||||||||
Activity related to fair value hedges | Activity related to fair value hedges recorded during each period presented was as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Interest | Foreign | Interest | |||||||||||||||||||||
Currency | Rate | Total | Currency | Rate | Total | |||||||||||||||||||
Contracts | Swaps | Contracts | Swaps | |||||||||||||||||||||
Notional Value at December 31, | $ | 1,163 | $ | 1,438 | $ | 2,601 | $ | 1,320 | $ | 1,188 | $ | 2,508 | ||||||||||||
Gain (loss) on derivative | 3 | (8 | ) | (5 | ) | 24 | (22 | ) | 2 | |||||||||||||||
Gain (loss) on hedged items | (3 | ) | 8 | 5 | (24 | ) | 22 | (2 | ) | |||||||||||||||
Activity related to cash flow hedges | Activity related to cash flow hedges recorded during each period presented was as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Commodity | Foreign | Commodity | |||||||||||||||||||||
Currency | Contracts | Total | Currency | Contracts | Total | |||||||||||||||||||
Contracts | Contracts | |||||||||||||||||||||||
Notional Value at December 31, | $ | 511 | $ | 14 | $ | 525 | $ | 386 | $ | 14 | $ | 400 | ||||||||||||
Gain (loss) recognized in OCI | 9 | — | 9 | 20 | — | 20 | ||||||||||||||||||
Gain (loss) reclassified into Cost of sales | 5 | — | 5 | 16 | 1 | 17 | ||||||||||||||||||
Activity related to net investment hedges | Activity related to net investment hedges recorded during each period presented was as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Foreign | Foreign | Foreign | Foreign | |||||||||||||||||||||
Currency | Currency | Total | Currency | Currency | Total | |||||||||||||||||||
Contracts | Debt | Contracts | Debt | |||||||||||||||||||||
Notional Value at December 31, | $ | 567 | $ | 297 | $ | 864 | $ | 529 | $ | 256 | $ | 785 | ||||||||||||
Gain (loss) on instruments | 73 | 11 | 84 | (24 | ) | (4 | ) | (28 | ) | |||||||||||||||
Gain (loss) on hedged items | (73 | ) | (11 | ) | (84 | ) | 23 | 4 | 27 | |||||||||||||||
Activity related to derivatives not designated as hedging instruments | Activity related to these contracts during each period presented was as follows: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Cross-currency | Cross-currency | |||||||||||||||||||||||
Swap | Swap | |||||||||||||||||||||||
Notional Value at December 31, | $ | 102 | $ | 96 | ||||||||||||||||||||
Gain (loss) on instrument | 5 | (2 | ) | |||||||||||||||||||||
Gain (loss) on hedged item | (5 | ) | 2 | |||||||||||||||||||||
Reconciliation of the Venezuelan investments at fair value | The following table presents a reconciliation of the Venezuelan bonds at fair value for the twelve months ended December 31: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Beginning balance as of January 1 | $ | 685 | $ | 642 | ||||||||||||||||||||
Unrealized gain (loss) on investment | (341 | ) | (113 | ) | ||||||||||||||||||||
Purchases and sales during the period | 55 | 156 | ||||||||||||||||||||||
Ending balance as of December 31 | $ | 399 | $ | 685 | ||||||||||||||||||||
Capital_Stock_and_StockBased_C1
Capital Stock and Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule Of Common And Treasury Stock Activity | A summary of common stock and treasury stock activity for the three years ended December 31, is as follows: | |||||||||||||
Common Stock Outstanding | Treasury Stock | |||||||||||||
Balance, January 1, 2012 | 960,036,150 | 505,670,210 | ||||||||||||
Common stock acquired | (38,730,602 | ) | 38,730,602 | |||||||||||
Shares issued for stock options | 12,217,230 | (12,217,230 | ) | |||||||||||
Shares issued for restricted stock units and other | 2,205,898 | (2,205,898 | ) | |||||||||||
Balance, December 31, 2012 | 935,728,676 | 529,977,684 | ||||||||||||
Common stock acquired | (25,573,317 | ) | 25,573,317 | |||||||||||
Shares issued for stock options | 7,883,834 | (7,883,834 | ) | |||||||||||
Shares issued for restricted stock units and other | 1,907,382 | (1,907,382 | ) | |||||||||||
Balance, December 31, 2013 | 919,946,575 | 545,759,785 | ||||||||||||
Common stock acquired | (23,131,081 | ) | 23,131,081 | |||||||||||
Shares issued for stock options | 7,977,124 | (7,977,124 | ) | |||||||||||
Shares issued for restricted stock units and other | 1,919,527 | (1,919,527 | ) | |||||||||||
Balance, December 31, 2014 | 906,712,145 | 558,994,215 | ||||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Fair value is estimated using the Black-Scholes option pricing model with the assumptions summarized in the following table: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected Term of Options | 4.5 years | 4.5 years | 4.5 years | |||||||||||
Expected Volatility Rate | 17.1 | % | 18.4 | % | 20.8 | % | ||||||||
Risk-Free Interest Rate | 1.6 | % | 1.5 | % | 0.6 | % | ||||||||
Expected Dividend Yield | 2.3 | % | 2.3 | % | 2.4 | % | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock unit activity during 2014 is presented below: | |||||||||||||
Shares | Weighted Average Grant Date Fair Value Per Award | |||||||||||||
(in thousands) | ||||||||||||||
Restricted stock units as of January 1, 2014 | 4,539 | $ | 48 | |||||||||||
Activity: | ||||||||||||||
Granted | 1,092 | 64 | ||||||||||||
Vested | (1,867 | ) | 42 | |||||||||||
Forfeited | (70 | ) | 52 | |||||||||||
Restricted stock units as of December 31, 2014 | 3,694 | $ | 56 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity during 2014 is presented below: | |||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Intrinsic Value of Unexercised | |||||||||||
(in thousands) | (in years) | In-the-Money Options | ||||||||||||
Options outstanding, January 1, 2014 | 42,832 | $ | 47 | |||||||||||
Granted | 9,036 | 64 | ||||||||||||
Exercised | (8,526 | ) | 41 | |||||||||||
Forfeited or expired | (440 | ) | 57 | |||||||||||
Options outstanding, December 31, 2014 | 42,902 | 52 | 4 | $ | 746 | |||||||||
Options exercisable, December 31, 2014 | 24,946 | $ | 46 | 3 | $ | 582 | ||||||||
Retirement_Plans_and_Other_Ret1
Retirement Plans and Other Retiree Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The target asset allocation for the Company’s defined benefit plans are as follows: | ||||||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||||||
Equity securities | 27 | % | 39 | % | |||||||||||||||||||||||||||||||||
Fixed income securities | 53 | 47 | |||||||||||||||||||||||||||||||||||
Real estate and other investments | 20 | 14 | |||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||
At December 31, 2014 the allocation of the Company’s plan assets and the level of valuation input for each major asset category was as follows: | |||||||||||||||||||||||||||||||||||||
Level of Valuation | Pension Plans | ||||||||||||||||||||||||||||||||||||
Input | United States | International | Other Retiree | ||||||||||||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | Level 1 | $ | 48 | $ | 10 | $ | 1 | ||||||||||||||||||||||||||||||
U.S. common stocks | Level 1 | 130 | 3 | 3 | |||||||||||||||||||||||||||||||||
International common stocks | Level 1 | — | 2 | — | |||||||||||||||||||||||||||||||||
Fixed income securities(a) | Level 2 | 625 | — | 13 | |||||||||||||||||||||||||||||||||
Common/collective trust funds(b): | Level 2 | ||||||||||||||||||||||||||||||||||||
Developed market equity index funds | 352 | 193 | 9 | ||||||||||||||||||||||||||||||||||
Emerging market equity index funds | 32 | 8 | 1 | ||||||||||||||||||||||||||||||||||
Other common stock funds | 118 | 27 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: U.S. or foreign government and agency securities | 115 | 107 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: investment grade corporate bonds | 168 | 75 | 4 | ||||||||||||||||||||||||||||||||||
Fixed income funds: high yield corporate bonds and other | 136 | 54 | 3 | ||||||||||||||||||||||||||||||||||
Guaranteed investment contracts(c) | Level 2 | 1 | 54 | — | |||||||||||||||||||||||||||||||||
Real estate funds(d) | Level 3 | 46 | 19 | 1 | |||||||||||||||||||||||||||||||||
Total Investments at fair value | $ | 1,771 | $ | 552 | $ | 41 | |||||||||||||||||||||||||||||||
At December 31, 2013 the allocation of the Company’s plan assets and the level of valuation input for each major asset category was as follows: | |||||||||||||||||||||||||||||||||||||
Level of Valuation | Pension Plans | ||||||||||||||||||||||||||||||||||||
Input | United States | International | Other Retiree | ||||||||||||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||||
Cash & cash equivalents | Level 1 | $ | 97 | $ | 23 | $ | 3 | ||||||||||||||||||||||||||||||
U.S. common stocks | Level 1 | 127 | — | 3 | |||||||||||||||||||||||||||||||||
International common stocks | Level 1 | 51 | — | 1 | |||||||||||||||||||||||||||||||||
Fixed income securities(a) | Level 2 | 433 | — | 8 | |||||||||||||||||||||||||||||||||
Common/collective trust funds(b): | Level 2 | ||||||||||||||||||||||||||||||||||||
Developed market equity index funds | 359 | 229 | 9 | ||||||||||||||||||||||||||||||||||
Emerging market equity index funds | 33 | 9 | 1 | ||||||||||||||||||||||||||||||||||
Other common stock funds | 123 | 41 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: U.S. or foreign government and agency securities | 149 | 73 | 3 | ||||||||||||||||||||||||||||||||||
Fixed income funds: investment grade corporate bonds | 203 | 71 | 5 | ||||||||||||||||||||||||||||||||||
Fixed income funds: high yield corporate bonds and other | 119 | 35 | 4 | ||||||||||||||||||||||||||||||||||
Guaranteed investment contracts(c) | Level 2 | 2 | 56 | — | |||||||||||||||||||||||||||||||||
Real estate funds(d) | Level 3 | 40 | 21 | 1 | |||||||||||||||||||||||||||||||||
Total Investments at fair value | $ | 1,736 | $ | 558 | $ | 41 | |||||||||||||||||||||||||||||||
_______ | |||||||||||||||||||||||||||||||||||||
(a) | The fixed income securities are traded over the counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of December 31, 2014 and 2013, approximately 50% of the fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and 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 estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. Since the appraisals include unobservable inputs, these investments are classified as Level 3. These unobservable inputs may include items such as annual gross rents, projected vacancy rates, collection losses and recovery rates, yield rates, growth assumptions and risk adjusted discount rates. | ||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table presents a reconciliation of Level 3 plan assets measured at fair value for the year ended December 31: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
United States Real Estate Fund | International Real Estate Fund | United States Real Estate Fund | International Real Estate Fund | ||||||||||||||||||||||||||||||||||
Beginning balance as of January 1 | $ | 41 | $ | 21 | $ | 72 | $ | 20 | |||||||||||||||||||||||||||||
Earned income, net of management expenses | 2 | — | 2 | — | |||||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment | 4 | (1 | ) | 9 | — | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances and settlements, net | — | (1 | ) | (42 | ) | 1 | |||||||||||||||||||||||||||||||
Ending balance as of December 31 | $ | 47 | $ | 19 | $ | 41 | $ | 21 | |||||||||||||||||||||||||||||
Defined benefit plans disclosures | The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Change in Benefit Obligations | |||||||||||||||||||||||||||||||||||||
Benefit obligations at beginning of year | $ | 2,102 | $ | 2,227 | $ | 894 | $ | 888 | $ | 792 | $ | 875 | |||||||||||||||||||||||||
Service cost | 1 | 24 | 17 | 19 | 10 | 11 | |||||||||||||||||||||||||||||||
Interest cost | 102 | 90 | 35 | 34 | 42 | 38 | |||||||||||||||||||||||||||||||
Participants’ contributions | — | 1 | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Acquisitions/plan amendments | — | 40 | — | 2 | — | — | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 362 | (148 | ) | 123 | (1 | ) | 203 | (101 | ) | ||||||||||||||||||||||||||||
Foreign exchange impact | — | — | (88 | ) | 12 | (3 | ) | (5 | ) | ||||||||||||||||||||||||||||
Termination benefits (1) | 5 | 11 | — | — | — | 6 | |||||||||||||||||||||||||||||||
Curtailments and settlements | — | (12 | ) | (28 | ) | (21 | ) | — | — | ||||||||||||||||||||||||||||
Benefit payments | (154 | ) | (131 | ) | (40 | ) | (41 | ) | (33 | ) | (32 | ) | |||||||||||||||||||||||||
Other | (12 | ) | — | (1 | ) | (1 | ) | — | — | ||||||||||||||||||||||||||||
Benefit obligations at end of year | $ | 2,406 | $ | 2,102 | $ | 916 | $ | 894 | $ | 1,011 | $ | 792 | |||||||||||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,736 | $ | 1,597 | $ | 558 | $ | 486 | $ | 41 | $ | 37 | |||||||||||||||||||||||||
Actual return on plan assets | 178 | 148 | 65 | 59 | 4 | 4 | |||||||||||||||||||||||||||||||
Company contributions | 23 | 121 | 36 | 61 | 29 | 32 | |||||||||||||||||||||||||||||||
Participants’ contributions | — | 1 | 4 | 3 | — | — | |||||||||||||||||||||||||||||||
Foreign exchange impact | — | — | (43 | ) | 2 | — | — | ||||||||||||||||||||||||||||||
Settlements | — | — | (27 | ) | (11 | ) | — | — | |||||||||||||||||||||||||||||
Benefit payments | (154 | ) | (131 | ) | (40 | ) | (41 | ) | (33 | ) | (32 | ) | |||||||||||||||||||||||||
Other | (12 | ) | — | (1 | ) | (1 | ) | — | — | ||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,771 | $ | 1,736 | $ | 552 | $ | 558 | $ | 41 | $ | 41 | |||||||||||||||||||||||||
Funded Status | |||||||||||||||||||||||||||||||||||||
Benefit obligations at end of year | $ | 2,406 | $ | 2,102 | $ | 916 | $ | 894 | $ | 1,011 | $ | 792 | |||||||||||||||||||||||||
Fair value of plan assets at end of year | 1,771 | 1,736 | 552 | 558 | 41 | 41 | |||||||||||||||||||||||||||||||
Net amount recognized | $ | (635 | ) | $ | (366 | ) | $ | (364 | ) | $ | (336 | ) | $ | (970 | ) | $ | (751 | ) | |||||||||||||||||||
Amounts Recognized in Balance Sheet | |||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 16 | $ | 6 | $ | 12 | $ | — | $ | — | |||||||||||||||||||||||||
Current liabilities | (20 | ) | (19 | ) | (28 | ) | (36 | ) | (41 | ) | (39 | ) | |||||||||||||||||||||||||
Noncurrent liabilities | (615 | ) | (363 | ) | (342 | ) | (312 | ) | (929 | ) | (712 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | (635 | ) | $ | (366 | ) | $ | (364 | ) | $ | (336 | ) | $ | (970 | ) | $ | (751 | ) | |||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||||
Actuarial loss | $ | 933 | $ | 674 | $ | 259 | $ | 181 | $ | 481 | $ | 296 | |||||||||||||||||||||||||
Transition/prior service cost | 2 | 3 | 19 | 23 | (3 | ) | 1 | ||||||||||||||||||||||||||||||
$ | 935 | $ | 677 | $ | 278 | $ | 204 | $ | 478 | $ | 297 | ||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,283 | $ | 1,995 | $ | 817 | $ | 802 | $ | — | $ | — | |||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.24 | % | 4.96 | % | 3.06 | % | 3.99 | % | 4.36 | % | 5.24 | % | |||||||||||||||||||||||||
Long-term rate of return on plan assets | 6.8 | % | 6.8 | % | 5.05 | % | 5.5 | % | 6.8 | % | 6.8 | % | |||||||||||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | 2.83 | % | 3.02 | % | — | % | — | % | |||||||||||||||||||||||||
ESOP growth rate | — | % | — | % | — | % | — | % | 10 | % | 10 | % | |||||||||||||||||||||||||
Medical cost trend rate of increase | — | % | — | % | — | % | — | % | 7 | % | 7 | % | |||||||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||||||||||
(1) | Represents pension and other retiree benefit enhancements incurred in 2014 and 2013 pursuant to the 2012 Restructuring Program. | ||||||||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1% change in the assumed medical cost trend rate would have the following approximate effect: | ||||||||||||||||||||||||||||||||||||
One percentage point | |||||||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||||||
Accumulated postretirement benefit obligation | $ | 150 | $ | (119 | ) | ||||||||||||||||||||||||||||||||
Total of service and interest cost components | 11 | (9 | ) | ||||||||||||||||||||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consist of the following: | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Benefit Obligation Exceeds Fair Value of Plan Assets | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 2,958 | $ | 1,130 | |||||||||||||||||||||||||||||||||
Fair value of plan assets | 1,955 | 402 | |||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | 2,725 | 700 | |||||||||||||||||||||||||||||||||||
Fair value of plan assets | 1,922 | 66 | |||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
United States | International | ||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 24 | $ | 24 | $ | 17 | $ | 19 | $ | 12 | $ | 11 | $ | 13 | $ | 11 | |||||||||||||||||||
Interest cost | 102 | 90 | 97 | 35 | 34 | 35 | 42 | 38 | 40 | ||||||||||||||||||||||||||||
Annual ESOP allocation | — | — | — | — | — | — | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Expected return on plan assets | (112 | ) | (118 | ) | (112 | ) | (29 | ) | (26 | ) | (26 | ) | (3 | ) | (3 | ) | (3 | ) | |||||||||||||||||||
Amortization of transition & prior service costs (credits) | 1 | 9 | 9 | 4 | 2 | 2 | 3 | 1 | 3 | ||||||||||||||||||||||||||||
Amortization of actuarial loss | 37 | 68 | 62 | 6 | 10 | 9 | 16 | 21 | 18 | ||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 29 | $ | 73 | $ | 80 | $ | 33 | $ | 39 | $ | 32 | $ | 68 | $ | 68 | $ | 67 | |||||||||||||||||||
Other postretirement charges | 5 | 102 | — | (8 | ) | 3 | 9 | — | 6 | 1 | |||||||||||||||||||||||||||
Total pension cost | $ | 34 | $ | 175 | $ | 80 | $ | 25 | $ | 42 | $ | 41 | $ | 68 | $ | 74 | $ | 68 | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.96 | % | 4.14 | % | 4.9 | % | 3.99 | % | 3.57 | % | 4.59 | % | 5.24 | % | 4.32 | % | 5.26 | % | |||||||||||||||||||
Long-term rate of return on plan assets | 6.8 | % | 7.3 | % | 7.75 | % | 5.5 | % | 5.39 | % | 5.91 | % | 6.8 | % | 7.3 | % | 7.75 | % | |||||||||||||||||||
Long-term rate of compensation increase | 3.5 | % | 3.5 | % | 4 | % | 3.02 | % | 2.8 | % | 2.87 | % | — | % | — | % | — | % | |||||||||||||||||||
ESOP growth rate | — | % | — | % | — | % | — | % | — | % | — | % | 10 | % | 10 | % | 10 | % | |||||||||||||||||||
Medical cost trend rate of increase | — | % | — | % | — | % | — | % | — | % | — | % | 7 | % | 7.5 | % | 8 | % | |||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated actuarial loss and the estimated transition/prior service cost for defined benefit and other retiree benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | Other Retiree Benefit Plans | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 48 | $ | 27 | |||||||||||||||||||||||||||||||||
Net transition & prior service cost | 11 | 3 | |||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | Total benefit payments expected to be paid to participants from plan assets, or directly from the Company’s assets to participants in unfunded plans, are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | United States | International | Other Retiree Benefit Plans | Total | |||||||||||||||||||||||||||||||||
2015 | $ | 139 | $ | 63 | $ | 42 | $ | 244 | |||||||||||||||||||||||||||||
2016 | 139 | 45 | 43 | 227 | |||||||||||||||||||||||||||||||||
2017 | 139 | 55 | 44 | 238 | |||||||||||||||||||||||||||||||||
2018 | 139 | 54 | 45 | 238 | |||||||||||||||||||||||||||||||||
2019 | 140 | 64 | 46 | 250 | |||||||||||||||||||||||||||||||||
2020-2024 | 721 | 646 | 247 | 1,614 | |||||||||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of income before income taxes | The components of income before income taxes are as follows for the three years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 1,094 | $ | 1,018 | $ | 1,155 | |||||||
International | 2,439 | 2,547 | 2,719 | ||||||||||
Total Income before income taxes | $ | 3,533 | $ | 3,565 | $ | 3,874 | |||||||
Provision for Income Taxes | The provision for income taxes consists of the following for the three years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 348 | $ | 314 | $ | 395 | |||||||
International | 846 | 841 | 848 | ||||||||||
Total Provision for income taxes | $ | 1,194 | $ | 1,155 | $ | 1,243 | |||||||
Schedule of Components of Income Tax Expense (Benefit) | 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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Goodwill and intangible assets | $ | (40 | ) | $ | (14 | ) | $ | (7 | ) | ||||
Property, plant and equipment | (13 | ) | — | (13 | ) | ||||||||
Pension and other retiree benefits | 19 | 85 | (14 | ) | |||||||||
Stock-based compensation | 11 | 10 | 5 | ||||||||||
Tax loss and tax credit carryforwards | 5 | (30 | ) | (39 | ) | ||||||||
Other, net | (19 | ) | (33 | ) | 32 | ||||||||
Total deferred tax provision | $ | (37 | ) | $ | 18 | $ | (36 | ) | |||||
Effective tax rate reconciliation | The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows: | ||||||||||||
Percentage of Income before income taxes | 2014 | 2013 | 2012 | ||||||||||
Tax at United States statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 0.7 | 0.4 | 0.7 | ||||||||||
Earnings taxed at other than United States statutory rate | (2.3 | ) | (1.4 | ) | (2.6 | ) | |||||||
Charge for a foreign tax matter (1) | 1.9 | — | — | ||||||||||
Other, net | (1.5 | ) | (1.6 | ) | (1.0 | ) | |||||||
Effective tax rate | 33.8 | % | 32.4 | % | 32.1 | % | |||||||
_________ | |||||||||||||
(1) | The charge for a foreign tax matter relates to a notice of an adverse decision in a foreign court regarding a tax position taken in prior years received by the Company in the second quarter of 2014. | ||||||||||||
Components of deferred tax assets (liabilities) | The components of deferred tax assets (liabilities) are as follows at December 31: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Goodwill and intangible assets | $ | (497 | ) | $ | (475 | ) | |||||||
Property, plant and equipment | (380 | ) | (375 | ) | |||||||||
Other | (266 | ) | (237 | ) | |||||||||
(1,143 | ) | (1,087 | ) | ||||||||||
Deferred tax assets: | |||||||||||||
Pension and other retiree benefits | 638 | 448 | |||||||||||
Tax loss and tax credit carryforwards | 33 | 28 | |||||||||||
Accrued liabilities | 276 | 317 | |||||||||||
Stock-based compensation | 119 | 116 | |||||||||||
Other | 148 | 95 | |||||||||||
1,214 | 1,004 | ||||||||||||
Net deferred income taxes | $ | 71 | $ | (83 | ) | ||||||||
2014 | 2013 | ||||||||||||
Deferred taxes included within: | |||||||||||||
Assets: | |||||||||||||
Other current assets | $ | 256 | $ | 284 | |||||||||
Deferred income taxes | 76 | 77 | |||||||||||
Liabilities: | |||||||||||||
Deferred income taxes | (261 | ) | (444 | ) | |||||||||
Net deferred income taxes | $ | 71 | $ | (83 | ) | ||||||||
Unrecognized tax benefits activity | Unrecognized tax benefits activity for the years ended December 31, 2014, 2013 and 2012 is summarized below: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits: | |||||||||||||
Balance, January 1 | $ | 199 | $ | 212 | $ | 176 | |||||||
Increases as a result of tax positions taken during the current year | 23 | 23 | 34 | ||||||||||
Decreases of tax positions taken during prior years | (11 | ) | (52 | ) | (6 | ) | |||||||
Increases of tax positions taken during prior years | 32 | 37 | 10 | ||||||||||
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations | (10 | ) | (22 | ) | (3 | ) | |||||||
Effect of foreign currency rate movements | (15 | ) | 1 | 1 | |||||||||
Balance, December 31 | $ | 218 | $ | 199 | $ | 212 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | |||||||||||||||||||||||||||||||||
For the Year Ended 2014 | For the Year Ended 2013 | For the Year Ended 2012 | |||||||||||||||||||||||||||||||
Net income attributable to Colgate-Palmolive Company | Shares | Per | Net income attributable to Colgate-Palmolive Company | Shares | Per | Net income attributable to Colgate-Palmolive Company | Shares | Per | |||||||||||||||||||||||||
(millions) | Share | (millions) | Share | (millions) | Share | ||||||||||||||||||||||||||||
Basic EPS | 2,180 | 915.1 | $ | 2.38 | 2,241 | 930.8 | $ | 2.41 | 2,472 | 952.1 | $ | 2.6 | |||||||||||||||||||||
Stock options and restricted stock units | 9.2 | 9.1 | 8.1 | ||||||||||||||||||||||||||||||
Diluted EPS | $ | 2,180 | 924.3 | $ | 2.36 | $ | 2,241 | 939.9 | $ | 2.38 | $ | 2,472 | 960.2 | $ | 2.57 | ||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Segment Reporting Information, by Segment | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America(1) | $ | 3,124 | $ | 3,072 | $ | 2,971 | |||||||
Latin America | 4,769 | 5,012 | 5,032 | ||||||||||
Europe/South Pacific | 3,406 | 3,396 | 3,417 | ||||||||||
Asia | 2,515 | 2,472 | 2,264 | ||||||||||
Africa/Eurasia | 1,208 | 1,257 | 1,241 | ||||||||||
Total Oral, Personal and Home Care | 15,022 | 15,209 | 14,925 | ||||||||||
Pet Nutrition(2) | 2,255 | 2,211 | 2,160 | ||||||||||
Total Net sales | $ | 17,277 | $ | 17,420 | $ | 17,085 | |||||||
_________ | |||||||||||||
(1) | Net sales in the U.S. for Oral, Personal and Home Care were $2,835, $2,771 and $2,669 in 2014, 2013 and 2012, respectively. | ||||||||||||
(2) | Net sales in the U.S. for Pet Nutrition were $1,149, $1,116 and $1,052 in 2014, 2013 and 2012, respectively. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating profit | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 926 | $ | 927 | $ | 810 | |||||||
Latin America | 1,279 | 1,385 | 1,454 | ||||||||||
Europe/South Pacific | 877 | 805 | 747 | ||||||||||
Asia | 736 | 698 | 619 | ||||||||||
Africa/Eurasia | 235 | 268 | 267 | ||||||||||
Total Oral, Personal and Home Care | 4,053 | 4,083 | 3,897 | ||||||||||
Pet Nutrition | 592 | 563 | 589 | ||||||||||
Corporate | (1,088 | ) | (1,090 | ) | (597 | ) | |||||||
Total Operating profit | $ | 3,557 | $ | 3,556 | $ | 3,889 | |||||||
2014 | 2013 | 2012 | |||||||||||
Capital expenditures | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 136 | $ | 54 | $ | 43 | |||||||
Latin America | 205 | 235 | 237 | ||||||||||
Europe/South Pacific | 78 | 74 | 71 | ||||||||||
Asia | 147 | 123 | 88 | ||||||||||
Africa/Eurasia | 14 | 11 | 16 | ||||||||||
Total Oral, Personal and Home Care | 580 | 497 | 455 | ||||||||||
Pet Nutrition | 40 | 45 | 37 | ||||||||||
Corporate | 137 | 128 | 73 | ||||||||||
Total Capital expenditures | $ | 757 | $ | 670 | $ | 565 | |||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 43 | $ | 51 | $ | 50 | |||||||
Latin America | 93 | 93 | 91 | ||||||||||
Europe/South Pacific | 84 | 85 | 85 | ||||||||||
Asia | 78 | 72 | 70 | ||||||||||
Africa/Eurasia | 10 | 11 | 11 | ||||||||||
Total Oral, Personal and Home Care | 308 | 312 | 307 | ||||||||||
Pet Nutrition | 52 | 51 | 50 | ||||||||||
Corporate | 82 | 76 | 68 | ||||||||||
Total Depreciation and amortization | $ | 442 | $ | 439 | $ | 425 | |||||||
2014 | 2013 | 2012 | |||||||||||
Identifiable assets | |||||||||||||
Oral, Personal and Home Care | |||||||||||||
North America | $ | 2,326 | $ | 2,301 | $ | 2,157 | |||||||
Latin America | 3,693 | 4,202 | 4,288 | ||||||||||
Europe/South Pacific | 3,836 | 3,978 | 3,649 | ||||||||||
Asia | 1,903 | 1,794 | 1,608 | ||||||||||
Africa/Eurasia | 510 | 557 | 561 | ||||||||||
Total Oral, Personal and Home Care | 12,268 | 12,832 | 12,263 | ||||||||||
Pet Nutrition | 1,051 | 1,087 | 1,045 | ||||||||||
Corporate(3) | 140 | 66 | 86 | ||||||||||
Total Identifiable assets(4) | $ | 13,459 | $ | 13,985 | $ | 13,394 | |||||||
____________ | |||||||||||||
(3) | In 2014, Corporate identifiable assets primarily consist of derivative instruments (62%) and investments in equity securities (22%). In 2013, Corporate identifiable assets primarily consist of derivative instruments (32%) and investments in equity securities (41%). In 2012, Corporate identifiable assets primarily consist of derivative instruments (67%) and investments in equity securities (28%). | ||||||||||||
(4) | Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $8,086, $8,248 and $8,066 in 2014, 2013 and 2012, respectively. |
Supplemental_Income_Statement_1
Supplemental Income Statement Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||
Other (income) expense, net | |||||||||||||
Other (income) expense, net | 2014 | 2013 | 2012 | ||||||||||
Amortization of intangible assets | $ | 32 | $ | 32 | $ | 31 | |||||||
2012 Restructuring Program | 195 | 202 | 81 | ||||||||||
Venezuela remeasurement charges | 327 | 172 | — | ||||||||||
Charges for European competition law matters | 41 | 23 | — | ||||||||||
Costs related to the sale of land in Mexico | — | 3 | — | ||||||||||
Business realignment and other cost-saving initiatives | — | — | 2 | ||||||||||
Equity (income) | (7 | ) | (5 | ) | (7 | ) | |||||||
Other, net | (18 | ) | (5 | ) | 6 | ||||||||
Total Other (income) expense, net | $ | 570 | $ | 422 | $ | 113 | |||||||
Interest expense, net | |||||||||||||
Interest (income) expense, net | 2014 | 2013 | 2012 | ||||||||||
Interest incurred | $ | 134 | $ | 119 | $ | 81 | |||||||
Interest capitalized | (4 | ) | (3 | ) | (1 | ) | |||||||
Interest income | (106 | ) | (125 | ) | (65 | ) | |||||||
Total Interest (income) expense, net | $ | 24 | $ | (9 | ) | $ | 15 | ||||||
Research and development and Advertising | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Research and development | $ | 277 | $ | 267 | $ | 259 | |||||||
Advertising | $ | 1,784 | $ | 1,891 | $ | 1,792 | |||||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Schedule of Inventory, Current | Inventories by major class are as follows: | ||||||||
Inventories | 2014 | 2013 | |||||||
Raw materials and supplies | $ | 349 | $ | 340 | |||||
Work-in-process | 55 | 60 | |||||||
Finished goods | 978 | 1,025 | |||||||
Total Inventories | $ | 1,382 | $ | 1,425 | |||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment, net | 2014 | 2013 | |||||||
Land | $ | 250 | $ | 254 | |||||
Buildings | 1,660 | 1,625 | |||||||
Manufacturing machinery and equipment | 5,220 | 5,220 | |||||||
Other equipment | 1,255 | 1,231 | |||||||
8,385 | 8,330 | ||||||||
Accumulated depreciation | (4,305 | ) | (4,247 | ) | |||||
Total Property, plant and equipment, net | $ | 4,080 | $ | 4,083 | |||||
Other accruals | |||||||||
Other accruals | 2014 | 2013 | |||||||
Accrued advertising and coupon redemption | $ | 550 | $ | 676 | |||||
Accrued payroll and employee benefits | 332 | 361 | |||||||
Accrued taxes other than income taxes | 122 | 131 | |||||||
Restructuring accrual | 114 | 142 | |||||||
Pension and other retiree benefits | 89 | 94 | |||||||
Accrued interest | 28 | 27 | |||||||
Derivatives | 5 | 11 | |||||||
Other | 677 | 647 | |||||||
Total Other accruals | $ | 1,917 | $ | 2,089 | |||||
Other liabilities | |||||||||
Other liabilities | 2014 | 2013 | |||||||
Pension and other retiree benefits | $ | 1,886 | $ | 1,387 | |||||
Restructuring accrual | 78 | 16 | |||||||
Other | 259 | 274 | |||||||
Total Other liabilities | $ | 2,223 | $ | 1,677 | |||||
Supplemental_Comprehensive_Inc1
Supplemental Comprehensive Income (Loss) Information (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | Other Comprehensive Income (Loss) components attributable to Colgate-Palmolive Company before tax and net of tax during the years ended December 31 were as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Pre-tax | Net of Tax | Pre-tax | Net of Tax | Pre-tax | Net of Tax | |||||||||||||||||
Cumulative translation adjustments | $ | (663 | ) | $ | (681 | ) | $ | (188 | ) | $ | (163 | ) | $ | 18 | $ | (20 | ) | |||||
Pension and other benefits: | ||||||||||||||||||||||
Net actuarial gain (loss) and prior | (580 | ) | (374 | ) | 295 | 189 | (317 | ) | (207 | ) | ||||||||||||
service costs arising during the | ||||||||||||||||||||||
period | ||||||||||||||||||||||
Amortization of net actuarial loss, | 67 | 45 | 111 | 70 | 101 | 62 | ||||||||||||||||
transition and prior service costs(1) | ||||||||||||||||||||||
Curtailment loss - unamortized | — | — | 91 | 59 | — | — | ||||||||||||||||
prior service costs(1) | ||||||||||||||||||||||
Retirement Plan and other retiree benefit | (513 | ) | (329 | ) | 497 | 318 | (216 | ) | (145 | ) | ||||||||||||
adjustments | ||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||
Unrealized gains (losses) on available- | (341 | ) | (222 | ) | (113 | ) | (73 | ) | 28 | 18 | ||||||||||||
for-sale securities(2) | ||||||||||||||||||||||
Reclassification of (gains) losses | 267 | 174 | 133 | 86 | — | — | ||||||||||||||||
into net earnings on available- | ||||||||||||||||||||||
for-sale securities(3) | ||||||||||||||||||||||
Gains (losses) on available-for-sale | (74 | ) | (48 | ) | 20 | 13 | 28 | 18 | ||||||||||||||
securities | ||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||
Unrealized gains (losses) on cash flow | 9 | 6 | 20 | 13 | 13 | 8 | ||||||||||||||||
hedges | ||||||||||||||||||||||
Reclassification of (gains) losses | (5 | ) | (4 | ) | (17 | ) | (11 | ) | (11 | ) | (7 | ) | ||||||||||
into net earnings on cash flow | ||||||||||||||||||||||
hedges(4) | ||||||||||||||||||||||
Gains (losses) on cash flow hedges | 4 | 2 | 3 | 2 | 2 | 1 | ||||||||||||||||
Total Other comprehensive income (loss) | $ | (1,246 | ) | $ | (1,056 | ) | $ | 332 | $ | 170 | $ | (168 | ) | $ | (146 | ) | ||||||
_________ | ||||||||||||||||||||||
(1) | These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. | |||||||||||||||||||||
(2) | For the year ended December 31, 2014, these amounts included pretax net losses of $324 related to the remeasurement of the bolivar denominated fixed interest rate bonds and the devaluation-protected bonds in Venezuela. | |||||||||||||||||||||
For the year ended December 31, 2013, these amounts included pretax losses of $133 related only to the remeasurement of the bolivar denominated fixed interest rate bonds in Venezuela as a result of the devaluation in the first quarter of 2013. No remeasurement charge was required on the devaluation-protected bonds in the first quarter of 2013 since the official exchange rate changed from 4.30 to 6.30 bolivares per dollar and the devaluation-protected bonds revalued to the official exchange rate. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | ||||||||||||||||||||||
(3) | Represents reclassification of losses on the Venezuela bonds into Other (income) expense, net due to an impairment in the fair value of the bonds as a result of the effective devaluations in the first and third quarters of 2014 and the devaluation in 2013. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | |||||||||||||||||||||
(4) | These (gains) losses are reclassified into Cost of sales. See Note 7, Fair Value Measurements and Financial Instruments for additional details. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Financial Information | Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
Total | First | Second | Third | Fourth | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014 | |||||||||||||||||||||
Net sales | $ | 17,277 | $ | 4,325 | $ | 4,352 | $ | 4,379 | $ | 4,221 | |||||||||||
Gross profit | 10,109 | (1) | 2,524 | (3) | 2,552 | (5) | 2,558 | (7) | 2,475 | (9) | |||||||||||
Net income including noncontrolling interests | 2,339 | (2) | 432 | (4) | 661 | (6) | 580 | (8) | 666 | (10) | |||||||||||
Net income attributable to Colgate-Palmolive Company | 2,180 | (2) | 388 | (4) | 622 | (6) | 542 | (8) | 628 | (10) | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | 2.38 | (2) | 0.42 | (4) | 0.68 | (6) | 0.59 | (8) | 0.69 | (10) | |||||||||||
Diluted | 2.36 | (2) | 0.42 | (4) | 0.67 | (6) | 0.59 | (8) | 0.68 | (10) | |||||||||||
2013 | |||||||||||||||||||||
Net sales | $ | 17,420 | $ | 4,315 | $ | 4,346 | $ | 4,398 | $ | 4,361 | |||||||||||
Gross profit | 10,201 | (11) | 2,515 | (13) | 2,534 | (15) | 2,585 | (17) | 2,567 | (19) | |||||||||||
Net income including noncontrolling interests | 2,410 | (12) | 506 | (14) | 604 | (16) | 699 | (18) | 601 | (20) | |||||||||||
Net income attributable to Colgate-Palmolive Company | 2,241 | (12) | 460 | (14) | 561 | (16) | 656 | (18) | 564 | (20) | |||||||||||
Earnings per common share: | |||||||||||||||||||||
Basic | 2.41 | (12) | 0.49 | (14) | 0.6 | (16) | 0.71 | (18) | 0.61 | (20) | |||||||||||
Diluted | 2.38 | (12) | 0.48 | (14) | 0.6 | (16) | 0.7 | (18) | 0.6 | (20) | |||||||||||
____________ | |||||||||||||||||||||
Note: | Basic and diluted earnings per share are computed independently for each quarter and the year-to-date period presented. Accordingly, the sum of the quarterly earnings per common share may not necessarily equal the earnings per share for the year-to-date period. | ||||||||||||||||||||
(1) | Gross profit for the full year of 2014 includes $29 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(2) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
(3) | Gross profit for the first quarter of 2014 includes $10 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(4) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2014 include $73 of aftertax charges related to the 2012 Restructuring Program, a $174 aftertax charge related to the 2014 Venezuela Remeasurements and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(5) | Gross profit for the second quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program and $2 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(6) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2014 include $53 of aftertax charges related to the 2012 Restructuring Program and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(7) | Gross profit for the third quarter of 2014 includes $7 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(8) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program, a $40 aftertax charge related to the 2014 Venezuela Remeasurements, an $11 charge for a European competition law matter, $1 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
(9) | Gross profit for the fourth quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program. | ||||||||||||||||||||
(10) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program and a $30 charge for a European competition law matter. | ||||||||||||||||||||
(11) | Gross profit for the full year of 2013 includes $32 of charges related to the 2012 Restructuring Program and $15 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(12) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(13) | Gross profit for the first quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(14) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2013 include $52 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(15) | Gross profit for the second quarter of 2013 includes $10 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(16) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2013 include $79 of aftertax charges related to the 2012 Restructuring Program, an $18 charge for a European competition law matter and $4 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(17) | Gross profit for the third quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $3 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(18) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2013 include $22 of aftertax charges related to the 2012 Restructuring Program and $2 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
(19) | Gross profit for the fourth quarter of 2013 includes $6 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
(20) | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2013 include $125 of aftertax charges related to the 2012 Restructuring Program, a $5 charge for a European competition law matter and $3 of aftertax costs related to the sale of land in Mexico. |
Nature_of_Operations_Details
Nature of Operations (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
business_segment | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of product segments | 2 | ||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percentage of worldwide sales | 100.00% | 100.00% | 100.00% |
Oral Care [Member] | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percentage of worldwide sales | 46.00% | 46.00% | 44.00% |
Personal Care [Member] | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percentage of worldwide sales | 21.00% | 21.00% | 22.00% |
Home Care [Member] | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percentage of worldwide sales | 20.00% | 20.00% | 21.00% |
Pet Nutrition [Member] | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percentage of worldwide sales | 13.00% | 13.00% | 13.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Principles of Consolidation [Abstract] | |||
Investments accounted for using the equity method, minimum interest | 20.00% | ||
Investments accounted for using the equity method, maximum interest | 50.00% | ||
Equity method investments included in Other assets | $31 | $27 | |
Investments accounted for using the cost method, maximum interest | 20.00% | ||
Shipping and Handling Costs [Abstract] | |||
Shipping and handling costs classified as Selling, general and administrative expenses | $1,326 | $1,304 | $1,262 |
Inventories [Abstract] | |||
Approximate percentage of inventories determined using the first-in, first-out (FIFO) method | 80.00% | ||
Minimum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum [Member] | Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Maximum [Member] | Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 1) (Trademarks, local brands, and non-compete agreements [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible assets | 5 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible assets | 40 years |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 03, 2014 |
MEXICO | |||||||||||||
Sale of Land in Mexico [Abstract] | |||||||||||||
First Installment received from the sale of land in Mexico | $24 | ||||||||||||
Second Installment received from the sale of land in Mexico | 36 | ||||||||||||
Pretax costs related to sale of land in Mexico | 4 | 18 | 24 | ||||||||||
Aftertax costs related to sale of land | 1 | 1 | 1 | 3 | 2 | 4 | 3 | 3 | 12 | 18 | |||
Oral Care Member | MYANMAR | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration for acquisition of business | $62 |
Restructuring_and_Related_Impl2
Restructuring and Related Implementation Charges (Details) (Two Thousand Twelve Restructuring Program [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Duration Of Restructuring Program | 4 years | |
Expected Percent of Total Charges Resulting In Cash Expenditure | 75.00% | |
One-time Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated Percent Of Total Cumulative Pretax Charges Of Implementing Restructuring Program By Category | 50.00% | |
Incremental Depreciation And Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated Percent Of Total Cumulative Pretax Charges Of Implementing Restructuring Program By Category | 10.00% | |
Charges Resulting Directly From Exit Activities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated Percent Of Total Cumulative Pretax Charges Of Implementing Restructuring Program By Category | 20.00% | |
Implementation Of New Strategies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated Percent Of Total Cumulative Pretax Charges Of Implementing Restructuring Program By Category | 20.00% | |
Pet Nutrition [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 10.00% | |
Corporate, Non-Segment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 40.00% | |
North America [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 15.00% | |
Europe/South Pacific | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 20.00% | |
Latin America [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 5.00% | |
Asia [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 5.00% | |
Africa/Eurasia [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Percent Of Total Restructuring Charges Related To Segment For The Duration Of The Program | 5.00% | |
Expected Completion Date 2016 [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Program Expected Cost Before Tax | $1,285 | |
Restructuring Program Total Expected Cost After Tax | 950 | |
Restructuring and Related Cost, Positions Eliminated [Abstract] | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,000 | |
Expected Completion Date 2016 [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Program Expected Cost Before Tax | 1,435 | |
Restructuring Program Total Expected Cost After Tax | 1,050 | |
Restructuring and Related Cost, Positions Eliminated [Abstract] | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,500 | |
Expected Completion Date 2015 [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Program Expected Cost, Upcoming Fiscal Year, Before Tax | 330 | |
Restructuring Program Expected Cost, Upcoming Fiscal Year, After Tax | 245 | |
Expected Completion Date 2015 [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Program Expected Cost, Upcoming Fiscal Year, Before Tax | 385 | |
Restructuring Program Expected Cost, Upcoming Fiscal Year, After Tax | $285 |
Restructuring_and_Related_Impl3
Restructuring and Related Implementation Charges (Details 1) (Two Thousand Twelve Restructuring Program [Member], USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Pretax charges related to the 2012 Restructuring Program | $286 | $371 | $89 | ||||||||
Aftertax charges related to the 2012 Restructuring Program | 41 | 41 | 53 | 73 | 125 | 22 | 79 | 52 | 208 | 278 | 70 |
Cost of Sales [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Pretax charges related to the 2012 Restructuring Program | 6 | 7 | 6 | 10 | 6 | 8 | 10 | 8 | 29 | 32 | 2 |
Selling, General and Administrative Expenses [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Pretax charges related to the 2012 Restructuring Program | 62 | 137 | 6 | ||||||||
Other (Income) Expense, Net [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Pretax charges related to the 2012 Restructuring Program | $195 | $202 | $81 |
Restructuring_and_Related_Impl4
Restructuring and Related Implementation Charges (Details 2) (Two Thousand Twelve Restructuring Program [Member]) | 12 Months Ended | 27 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Pet Nutrition [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 10.00% | 8.00% | 3.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 8.00% | |||
Corporate, Non-Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 49.00% | 42.00% | 38.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 44.00% | |||
North America [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 11.00% | 11.00% | 2.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 10.00% | |||
Latin America [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 4.00% | 4.00% | 0.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 4.00% | |||
Europe South Pacific [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 20.00% | 28.00% | 55.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 28.00% | |||
Asia [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 3.00% | 0.00% | 0.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 1.00% | |||
Africa/Eurasia [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of Restructuring Charges Related to Segment for Period | 3.00% | 7.00% | 2.00% | |
Percent Of Restructuring Charges Reportable Segment Program Charges Incurred To Date | 5.00% |
Restructuring_and_Related_Impl5
Restructuring and Related Implementation Charges (Details 3) (Two Thousand Twelve Restructuring Program [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Charges Related to the Restructuring Program to Date | $746 |
After Tax Charges Related to the Restructuring Program to Date | 556 |
One-time Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Charges Related to the Restructuring Program to Date | 295 |
Incremental Depreciation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Charges Related to the Restructuring Program to Date | 51 |
Asset Impairment [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Charges Related to the Restructuring Program to Date | 2 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pretax Charges Related to the Restructuring Program to Date | $398 |
Restructuring_and_Related_Impl6
Restructuring and Related Implementation Charges (Details 4) (Two Thousand Twelve Restructuring Program [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $158 | $89 | $0 |
Charges | 286 | 371 | 89 |
Cash Payments | -212 | -169 | -5 |
Charges against assets | -31 | -44 | 0 |
Foreign exchange | -9 | 2 | 5 |
Other | 0 | -91 | |
Ending Balance | 192 | 158 | 89 |
One-time Termination Benefits [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 116 | 84 | 0 |
Charges | 73 | 144 | 78 |
Cash Payments | -95 | -97 | -1 |
Charges against assets | -5 | -17 | 0 |
Foreign exchange | -4 | 2 | 7 |
Other | 0 | 0 | |
Ending Balance | 85 | 116 | 84 |
Incremental Depreciation [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Charges | 25 | 26 | 0 |
Cash Payments | 0 | 0 | 0 |
Charges against assets | -25 | -26 | 0 |
Foreign exchange | 0 | 0 | 0 |
Other | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Asset Impairment [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Charges | 1 | 1 | 0 |
Cash Payments | 0 | 0 | 0 |
Charges against assets | -1 | -1 | 0 |
Foreign exchange | 0 | 0 | 0 |
Other | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Other Restructuring [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 42 | 5 | 0 |
Charges | 187 | 200 | 11 |
Cash Payments | -117 | -72 | -4 |
Charges against assets | 0 | 0 | 0 |
Foreign exchange | -5 | 0 | -2 |
Other | 0 | -91 | |
Ending Balance | 107 | 42 | 5 |
Third party Incremental Cost [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 65 | 50 | 8 |
Contract Termination [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 40 | 34 | 3 |
Land and Building [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charges | $82 | $25 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $2,307 | $2,474 |
Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2,292 | 2,459 |
Pet Nutrition [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 15 | 15 |
North America | Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 352 | 362 |
Latin America | Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 320 | 353 |
Europe/South Pacific | Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,374 | 1,525 |
Asia | Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 160 | 126 |
Africa/Eurasia | Oral, Personal and Home Care [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $86 | $93 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite and indefinite-lived intangible assets [Line Items] | |||
Finite & Indefinite Life Intangibles, Gross | $1,752 | $1,816 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -339 | -320 | |
Intangible Assets, Net (Excluding Goodwill) | 1,413 | 1,496 | |
Amortization of Intangible Assets | 32 | 32 | 31 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future amortization expense - 2015 | 30 | ||
Future amortization expense - 2016 | 30 | ||
Future amortization expense - 2017 | 30 | ||
Future amortization expense - 2018 | 30 | ||
Future amortization expense - 2019 | 30 | ||
Trademarks | |||
Finite and indefinite-lived intangible assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 552 | 551 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -285 | -275 | |
Finite-Lived Intangible Assets, Net | 267 | 276 | |
Other finite life intangible assets | |||
Finite and indefinite-lived intangible assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 213 | 219 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -54 | -45 | |
Finite-Lived Intangible Assets, Net | 159 | 174 | |
Indefinite life intangible assets | |||
Finite and indefinite-lived intangible assets [Line Items] | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 987 | 1,046 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $0 | $0 |
LongTerm_Debt_and_Credit_Facil2
Long-Term Debt and Credit Facilities (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Total Debt | $6,132 | $5,644 |
Less: Current portion of long-term debt | -488 | -895 |
Total Debt, Excluding Current Maturities | 5,644 | 4,749 |
Short-term Bank Loans and Notes Payable | 16 | 13 |
Weighted-average interest rate on short term borrowings | 1.90% | 2.20% |
Scheduled maturities of long-term debt [Abstract] | ||
2015 | 488 | |
2016 | 263 | |
2017 | 660 | |
2018 | 697 | |
2019 | 498 | |
Thereafter | 3,271 | |
Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.90% | |
Maturity date range, start | 31-Dec-15 | |
Maturity date range, end | 31-Dec-78 | |
Total Debt | 5,877 | 5,644 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 0.00% | |
Maturity date | 2015 | |
Total Debt | $255 | $0 |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facilities (Details 1) | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Notes | Notes | Notes | Forty Year Notes at Variable Rate [Member] | Forty Year Notes at Variable Rate [Member] | Five Year Notes at 1 Point 75 Percent [Member] | Ten Year Note at 3 point 25 Percent [Member] | Five Year Notes at 1 Point 5 Percent [Member] | Five Year Notes at Point 9 Percent [Member] | Ten Year Notes at 2 Point 1 Percent [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Schedule of U.S. dollar-denominated notes [Line Items] | ||||||||||
Face amount | $134 | $82 | $500 | $500 | $300 | $400 | $400 | |||
Debt Instrument, Term | 40 years | 40 years | 5 years | 10 years | 5 years | 5 years | 10 years | |||
Fixed Interest rate | 1.75% | 3.25% | 1.50% | 0.90% | 2.10% | |||||
Retirement of Notes - Portion Due in Current Year | $250 | € 250 | $250 |
LongTerm_Debt_and_Credit_Facil4
Long-Term Debt and Credit Facilities (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of credit facility [Line Items] | ||
Unused borrowing capacity | $3,001 | |
Amended Domestic Revolving Credit Facility 2370 Million Capacity [Member] | ||
Line of credit facility [Line Items] | ||
Maximum borrowing capacity | 2,370 | |
Line of Credit Facility, Expiration Date | 30-Nov-19 | |
Debt Instrument, Term | 5 years | |
Domestic Revolving Credit Facility 165 Million Capacity [Member] | ||
Line of credit facility [Line Items] | ||
Maximum borrowing capacity | 165 | |
Line of Credit Facility, Expiration Date | 30-Nov-15 | |
Domestic Revolving Credit Facility 20 Million Capacity [Member] | ||
Line of credit facility [Line Items] | ||
Maximum borrowing capacity | 20 | |
Line of Credit Facility, Expiration Date | 31-Dec-15 | |
Domestic Revolving Credit Facility 1850 Million Capacity [Member] | ||
Line of credit facility [Line Items] | ||
Maximum borrowing capacity | $1,850 | |
Line of Credit Facility, Expiration Date | 30-Nov-18 | |
Debt Instrument, Term | 5 years |
Fair_Value_Measurements_and_Fi2
Fair Value Measurements and Financial Instruments (Details) | 12 Months Ended |
Dec. 31, 2014 | |
country_and_territory | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Minimum Number Of Countries And Territories Serving Consumers | 200 |
Fair_Value_Measurements_and_Fi3
Fair Value Measurements and Financial Instruments (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | $94 | $35 | |
Derivative Liabilities | 7 | 19 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 8 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 3 | |
Total asset derivatives | 102 | 35 | |
Total liability derivatives | 7 | 22 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |||
Total other financial instruments | 564 | 858 | |
Fair Value, Inputs, Level 2 [Member] | Bonds Issued By Venezuelan Government [Member] | |||
Financial Instruments, Owned, at Fair Value [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | 399 | 685 | 642 |
Other Current Assets [Member] | |||
Financial Instruments, Owned, at Fair Value [Abstract] | |||
Marketable Securities | 200 | 173 | |
Notes Receivable, Fair Value Disclosure | 42 | 0 | |
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Bonds Issued By Venezuelan Government [Member] | |||
Financial Instruments, Owned, at Fair Value [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | 77 | ||
Interest Rate Swap Contracts [Member] | Other Current Assets [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | 1 | 1 | |
Interest Rate Swap Contracts [Member] | Other Accruals [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Liabilities | 0 | 0 | |
Interest Rate Swap Contracts [Member] | Other Assets [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | 12 | 20 | |
Interest Rate Swap Contracts [Member] | Other Liabilities [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Liabilities | 2 | 1 | |
Foreign Currency Contracts [Member] | Other Current Assets [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | 21 | 14 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0 | 0 | |
Foreign Currency Contracts [Member] | Other Accruals [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Liabilities | 4 | 8 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 3 | |
Foreign Currency Contracts [Member] | Other Assets [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | 60 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 8 | 0 | |
Foreign Currency Contracts [Member] | Other Liabilities [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Liabilities | 0 | 10 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 0 | |
Commodity Contracts [Member] | Other Current Assets [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Assets | 0 | 0 | |
Commodity Contracts [Member] | Other Accruals [Member] | |||
Designated Derivative Instruments [Abstract] | |||
Derivative Liabilities | 1 | 0 | |
Estimate of Fair Value Measurement [Member] | Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Bonds Issued By Venezuelan Government [Member] | |||
Financial Instruments, Owned, at Fair Value [Abstract] | |||
Available-for-sale Securities, Fair Value Disclosure | $322 | $685 |
Fair_Value_Measurements_and_Fi4
Fair Value Measurements and Financial Instruments (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrying value of long-term debt | $6,132 | $5,644 |
Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value of long-term debt | 6,132 | 5,644 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long term-debt | $6,346 | $5,690 |
Fair_Value_Measurements_and_Fi5
Fair Value Measurements and Financial Instruments (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Not Designated as Hedging Instrument [Member] | Cross-Currency Swap (Member) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | $102 | $96 |
Activity related to derivatives not designated as hedging instruments [Abstract] | ||
Gain (loss) on instrument | 5 | -2 |
Gain (loss) on hedged item | -5 | 2 |
Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 2,601 | 2,508 |
Activity related to fair value hedges [Abstract] | ||
Gain (loss) on derivative | -5 | 2 |
Gain (loss) on hedged items | 5 | -2 |
Fair Value Hedging [Member] | Foreign Currency Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 1,163 | 1,320 |
Activity related to fair value hedges [Abstract] | ||
Gain (loss) on derivative | 3 | 24 |
Gain (loss) on hedged items | -3 | -24 |
Fair Value Hedging [Member] | Interest Rate Swap Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 1,438 | 1,188 |
Activity related to fair value hedges [Abstract] | ||
Gain (loss) on derivative | -8 | -22 |
Gain (loss) on hedged items | 8 | 22 |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 525 | 400 |
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | 9 | 20 |
Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 511 | 386 |
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | 9 | 20 |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 14 | 14 |
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | 0 | 0 |
Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 864 | 785 |
Activity related to net investment hedges [Abstract] | ||
Gain (loss) on instruments | 84 | -28 |
Gain (loss) on hedged items | -84 | 27 |
Net Investment Hedging [Member] | Foreign Currency Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 567 | 529 |
Activity related to net investment hedges [Abstract] | ||
Gain (loss) on instruments | 73 | -24 |
Gain (loss) on hedged items | -73 | 23 |
Net Investment Hedging [Member] | Foreign Currency Denominated Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Value of Derivative | 297 | 256 |
Activity related to net investment hedges [Abstract] | ||
Gain (loss) on instruments | 11 | -4 |
Gain (loss) on hedged items | -11 | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | ||
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) reclassified into Cost of sales | 5 | 17 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | Foreign Currency Contracts [Member] | ||
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) reclassified into Cost of sales | 5 | 16 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) reclassified into Cost of sales | $0 | $1 |
Fair_Value_Measurements_and_Fi6
Fair Value Measurements and Financial Instruments (Details 4) | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
USD ($) | USD ($) | Other Current Assets [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | VENEZUELA | VENEZUELA | |
USD ($) | USD ($) | Other Current Assets [Member] | Bonds Issued By Venezuelan Government [Member] | Bonds Issued By Venezuelan Government [Member] | Bonds Issued By Venezuelan Government [Member] | Other Current Assets [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | VEF | VEF | |||
Deposits [Member] | USD ($) | USD ($) | USD ($) | Bonds Issued By Venezuelan Government [Member] | Other Assets [Member] | Other Assets [Member] | |||||||
USD ($) | USD ($) | Bonds Issued By Venezuelan Government [Member] | Bonds Issued By Venezuelan Government [Member] | ||||||||||
USD ($) | USD ($) | ||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | |||||||||||||
Loss (gain) related to the remeasurement of fixed interest rate and devaluation-protected bonds in Venezuela | $324 | ||||||||||||
Schedule of Available for Sale Securities and Marketable Securities [Line Items] | |||||||||||||
Marketable Securities | 200 | 173 | 123 | ||||||||||
Available-for-sale Securities | 399 | 685 | 642 | 77 | 322 | 685 | |||||||
Fair Value of U.S. dollar-linked, devaluation-protected bonds | 114 | ||||||||||||
Fair Value of fixed interest rate bonds | 285 | ||||||||||||
Loss related to the remeasurement of fixed interest rate bonds in Venezuela | $133 | ||||||||||||
Official Exchange Rate | 6.3 | 4.3 |
Fair_Value_Measurements_and_Fi7
Fair Value Measurements and Financial Instruments (Details 5) (Fair Value, Inputs, Level 2 [Member], Bonds Issued By Venezuelan Government [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 2 [Member] | Bonds Issued By Venezuelan Government [Member] | ||
Venezuelan Investments [Roll Forward] | ||
Beginning balance | $685 | $642 |
Unrealized gain (loss) on investment | -341 | -113 |
Purchases and sales during the period | 55 | 156 |
Ending balance | $399 | $685 |
Capital_Stock_and_StockBased_C2
Capital Stock and Stock-Based Compensation Plans (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 19, 2015 |
Preference Stock [Abstract] | ||||
Shares authorized (in shares) | 50,262,150 | |||
Stock Repurchases [Abstract] | ||||
Repurchased stock | $1,530 | $1,521 | $1,943 | |
Increase of Common Stock, Percentage, Stock Splits | 100.00% | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | |||
Summary of common stock activity [Roll Forward] | ||||
Common Stock Balance, January 1 (in shares) | 919,946,575 | 935,728,676 | 960,036,150 | |
Common stock acquired (in shares) | -23,131,081 | -25,573,317 | -38,730,602 | |
Shares issued for stock options (in shares) | 7,977,124 | 7,883,834 | 12,217,230 | |
Shares issued for restricted stock and other (in shares) | 1,919,527 | 1,907,382 | 2,205,898 | |
Common Stock Balance, December 31 (in shares) | 906,712,145 | 919,946,575 | 935,728,676 | |
Summary Of Treasury Stock Activity [Roll Forward] | ||||
Treasury Stock Balance, January 1 (in shares) | 545,759,785 | 529,977,684 | 505,670,210 | |
Common stock acquired (in shares) | 23,131,081 | 25,573,317 | 38,730,602 | |
Shares issued for stock options (in shares) | -7,977,124 | -7,883,834 | -12,217,230 | |
Shares issued for restricted stock and other (in shares) | -1,919,527 | -1,907,382 | -2,205,898 | |
Treasury Stock Balance, December 31 (in shares) | 558,994,215 | 545,759,785 | 529,977,684 | |
Stock-based compensation [Abstract] | ||||
Allocated Share-based Compensation Expense | 131 | 128 | 120 | |
Total income tax benefit | 42 | 39 | 37 | |
Fair Value Assumptions [Abstract] | ||||
Weighted-average estimated fair value of stock options granted (in dollars per share) | $7.60 | $7.41 | $6.73 | |
Expected term (in years) | 4 years 6 months | 4 years 6 months | 4 years 6 months | |
Expected Volatility Rate (in hundredths) | 17.10% | 18.40% | 20.80% | |
Risk-Free Rate (in hundredths) | 1.60% | 1.50% | 0.60% | |
Expected Dividend Yield (in hundredths) | 2.30% | 2.30% | 2.40% | |
Summary of restricted stock award activity [Roll Forward] | ||||
Restricted stock awards - beginning balance (in shares) | 4,539,000 | |||
Granted (in shares) | 1,092,000 | |||
Vested (in shares) | -1,867,000 | |||
Forfeited (in shares) | -70,000 | |||
Restricted stock awards - ending balance (in shares) | 3,694,000 | 4,539,000 | ||
Weighted average grant date fair value per award [Roll Forward] | ||||
Weighted average grant date fair value of restricted stock awards - beginning of period (in dollars per share) | $48 | |||
Weighted average grant date fair value of restricted stock awards - shares granted (in dollars per share) | $64 | |||
Weighted average grant date fair value of restricted stock awards - shares vested (in dollars per share) | $42 | |||
Weighted average grant date fair value of restricted stock awards - shares forfeited (in dollars per share) | $52 | |||
Weighted average grant date fair value of restricted stock awards - end of period (in dollars per share) | $56 | $48 | ||
Summary of stock option plan activity [Roll Forward] | ||||
Options - beginning balance (in shares) | 42,832,000 | |||
Granted (in shares) | 9,036,000 | |||
Shares issued for stock options (in shares) | -8,526,000 | |||
Forfeited or expired (in shares) | -440,000 | |||
Options - ending balance (in shares) | 42,902,000 | 42,832,000 | ||
Options exercisable (in shares) | 24,946,000 | |||
Additional disclosures pertaining to stock options [Abstract] | ||||
Weighted average exercise price of options - beginning of period (in dollars per share) | $47 | |||
Weighted average exercise price of options - shares granted (in dollars per share) | $64 | |||
Weighted average exercise price of options - shares exercised (in dollars per share) | $41 | |||
Weighted average exercise price of options - shares forfeited or expired (in dollars per share) | $57 | |||
Weighted average exercise price of options - end of period (in dollars per share) | $52 | $47 | ||
Weighted average exercise price of options exercisable - end of period (in dollars per share) | $46 | |||
Weighted average remaining contractual life, options outstanding (in years) | 4 years | |||
Weighted average remaining contractual life, options exercisable (in years) | 3 years | |||
Value of unexercised in-the-money options, options outstanding | 746 | |||
Value of unexercised in-the-money options, options exercisable | 582 | |||
Stock-based compensation, additional disclosures [Abstract] | ||||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 63 | 51 | 60 | |
Proceeds from Stock Options Exercised | 314 | 289 | 409 | |
Program 2011 [Member] | ||||
Stock Repurchases [Abstract] | ||||
Treasury stock repurchase authorization (in shares) | 50,000,000 | |||
Incentive Stock Plans [Member] | ||||
Additional disclosures pertaining to restricted stock awards [Abstract] | ||||
Number of shares available for grant (in shares) | 12,414,000 | |||
Unrecognized compensation expense | 63 | |||
Unrecognized compensation expense, weighted-average period of recognition in years | 2 years 1 month 6 days | |||
Total fair value of shares vested | 71 | 69 | 63 | |
Stock Option Plans [Member] | ||||
Additional disclosures pertaining to restricted stock awards [Abstract] | ||||
Number of shares available for grant (in shares) | 46,062,000 | |||
Unrecognized compensation expense | 46 | |||
Unrecognized compensation expense, weighted-average period of recognition in years | 1 year 6 months | |||
Stock-based compensation, additional disclosures [Abstract] | ||||
Contractual term (in years) | 6 years | |||
Vesting period (in years) | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 211 | 180 | 210 | |
Program 2015 [Member] | Subsequent Event [Member] | ||||
Stock-based compensation, additional disclosures [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $5,000 |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 29, 2010 | Dec. 31, 1989 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Long-term notes issued by ESOP | $410 | ||||
Average interest rate on ESOP notes | 8.70% | ||||
Preference stock purchased from the proceeds of the notes (in shares) | 6,315,149 | ||||
Common stock converted (in shares) | 38,483,072 | ||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 26,137,798 | 29,119,135 | |||
Outstanding Borrowings from the Company | 20 | ||||
Common shares released and allocated to participant accounts (in shares) | 18,489,250 | ||||
Common shares available for future allocation to participant accounts (in shares) | 7,648,548 | ||||
Annual ESOP expense | 2 | 0 | 0 | ||
Dividends paid by the Company on shares held by the ESOP | 40 | 41 | 40 | ||
Company contributions to the ESOP | $2 | $0 | $0 |
Retirement_Plans_and_Other_Ret2
Retirement Plans and Other Retiree Benefits (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage Of Fixed Income Portfolio Invested In Us Treasury Or Agency Securities | 50.00% | 50.00% | |||
Two Thousand Twelve Restructuring Program [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring Reserve, Charges Against Assets | $31 | $44 | $0 | ||
Defined Benefit Plan, Curtailments | 0 | -91 | |||
Other Restructuring [Member] | Two Thousand Twelve Restructuring Program [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring Reserve, Charges Against Assets | 0 | 0 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | -91 | |||
One-time Termination Benefits [Member] | Two Thousand Twelve Restructuring Program [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring Reserve, Charges Against Assets | 5 | 17 | 0 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | |||
United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 100.00% | ||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 1,771 | 1,736 | 1,597 | ||
Dividends received by plans on the Company's common stock | 2 | 3 | |||
Defined Benefit Plan Percentage Of Equity Securities Invested In Employer Securities | 7.00% | 6.00% | |||
Defined Benefit Plan, Plan Assets, Common Shares Sold | 0 | 1,540,215 | |||
United States Pension Plan of US Entity [Member] | Equity securities | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 27.00% | ||||
United States Pension Plan of US Entity [Member] | Cash & cash equivalents | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 48 | 97 | |||
United States Pension Plan of US Entity [Member] | U.S. common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 130 | 127 | |||
United States Pension Plan of US Entity [Member] | International common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 0 | 51 | |||
United States Pension Plan of US Entity [Member] | Fixed income securities | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 53.00% | ||||
United States Pension Plan of US Entity [Member] | Fixed income securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 625 | [1] | 433 | [1] | |
United States Pension Plan of US Entity [Member] | Developed market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 352 | [2] | 359 | [2] | |
United States Pension Plan of US Entity [Member] | Emerging market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 32 | [2] | 33 | [2] | |
United States Pension Plan of US Entity [Member] | Other common stock funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 118 | [2] | 123 | [2] | |
United States Pension Plan of US Entity [Member] | Fixed income funds: U.S. or foreign government and agency securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 115 | [2] | 149 | [2] | |
United States Pension Plan of US Entity [Member] | Fixed income funds: investment grade corporate bonds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 168 | [2] | 203 | [2] | |
United States Pension Plan of US Entity [Member] | Fixed income funds: high yield corporate bonds and other | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 136 | [2] | 119 | [2] | |
United States Pension Plan of US Entity [Member] | Guaranteed investment contracts | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 1 | [3] | 2 | [3] | |
United States Pension Plan of US Entity [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 46 | [4] | 40 | [4] | |
United States Pension Plan of US Entity [Member] | Real estate and other investments | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 20.00% | ||||
International Pension Benefits [Member] | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 100.00% | ||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 552 | 558 | 486 | ||
International Pension Benefits [Member] | Equity securities | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 39.00% | ||||
International Pension Benefits [Member] | Cash & cash equivalents | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 10 | 23 | |||
International Pension Benefits [Member] | U.S. common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 3 | 0 | |||
International Pension Benefits [Member] | International common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 2 | 0 | |||
International Pension Benefits [Member] | Fixed income securities | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 47.00% | ||||
International Pension Benefits [Member] | Fixed income securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 0 | [1] | 0 | [1] | |
International Pension Benefits [Member] | Developed market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 193 | [2] | 229 | [2] | |
International Pension Benefits [Member] | Emerging market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 8 | [2] | 9 | [2] | |
International Pension Benefits [Member] | Other common stock funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 27 | [2] | 41 | [2] | |
International Pension Benefits [Member] | Fixed income funds: U.S. or foreign government and agency securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 107 | [2] | 73 | [2] | |
International Pension Benefits [Member] | Fixed income funds: investment grade corporate bonds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 75 | [2] | 71 | [2] | |
International Pension Benefits [Member] | Fixed income funds: high yield corporate bonds and other | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 54 | [2] | 35 | [2] | |
International Pension Benefits [Member] | Guaranteed investment contracts | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 54 | [3] | 56 | [3] | |
International Pension Benefits [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 19 | [4] | 21 | [4] | 20 |
Defined Benefit Plan, Actual Return on Plan Assets Sold During Period | 0 | 0 | |||
Defined Benefit Plan, Actual Return on Plan Assets Still Held | -1 | 0 | |||
Defined Benefit Plan, Purchases, Sales, and Settlements | -1 | 1 | |||
International Pension Benefits [Member] | Real estate and other investments | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Target asset allocation | 14.00% | ||||
Other Retiree Benefits [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 41 | 41 | 37 | ||
Other Retiree Benefits [Member] | Cash & cash equivalents | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 1 | 3 | |||
Other Retiree Benefits [Member] | U.S. common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 3 | 3 | |||
Other Retiree Benefits [Member] | International common stocks | Level 1 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 0 | 1 | |||
Other Retiree Benefits [Member] | Fixed income securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 13 | [1] | 8 | [1] | |
Other Retiree Benefits [Member] | Developed market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 9 | [2] | 9 | [2] | |
Other Retiree Benefits [Member] | Emerging market equity index funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 1 | [2] | 1 | [2] | |
Other Retiree Benefits [Member] | Other common stock funds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 3 | [2] | 3 | [2] | |
Other Retiree Benefits [Member] | Fixed income funds: U.S. or foreign government and agency securities | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 3 | [2] | 3 | [2] | |
Other Retiree Benefits [Member] | Fixed income funds: investment grade corporate bonds | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 4 | [2] | 5 | [2] | |
Other Retiree Benefits [Member] | Fixed income funds: high yield corporate bonds and other | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 3 | [2] | 4 | [2] | |
Other Retiree Benefits [Member] | Guaranteed investment contracts | Level 2 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | 0 | [3] | 0 | [3] | |
Other Retiree Benefits [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Allocation of plan assets and level of valuation input for each major asset category [Abstract] | |||||
Total investments at fair value | $1 | [4] | $1 | [4] | |
[1] | The fixed income securities are traded over the counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of December 31, 2014 and 2013, approximately 50% of the fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and corporate bonds. | ||||
[2] | Interests in common/collective trust funds are valued using the net asset value (“NAVâ€) 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. | ||||
[3] | The guaranteed investment contracts (“GICsâ€) 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. | ||||
[4] | Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. Since the appraisals include unobservable inputs, these investments are classified as Level 3. These unobservable inputs may include items such as annual gross rents, projected vacancy rates, collection losses and recovery rates, yield rates, growth assumptions and risk adjusted discount rates. |
Retirement_Plans_and_Other_Ret3
Retirement Plans and Other Retiree Benefits Additional Disclosures (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Amounts Recognized in Balance Sheet | |||||
Current liabilities | ($89) | ($94) | |||
Estimated amounts that will be amortized from accumulated other comprehensive income [Abstract] | |||||
Expected Benefit Payments From Company Assets | 69 | ||||
Total benefit payments [Abstract] | |||||
2015 | 244 | ||||
2016 | 227 | ||||
2017 | 238 | ||||
2018 | 238 | ||||
2019 | 250 | ||||
2020-2024 | 1,614 | ||||
United States Pension Plans of Us Entity And Other Post Retirement Plans [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 41 | 72 | |||
Earned income, net of management expenses | 2 | 2 | |||
Unrealized gain on investment | 4 | 9 | |||
Purchases, sales, issuances and settlements, net | 0 | -42 | |||
Fair value of plan assets at end of year | 47 | 41 | |||
Funded Status | |||||
Fair value of plan assets at end of year | 47 | 41 | |||
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation, Percentage Increase Due To Expected Mortality Update In The Current Year | 6.00% | ||||
Defined Benefit Plan Percentage Of Equity Securities Invested In Employer Securities | 7.00% | 6.00% | |||
Defined Benefit Plan, Plan Assets Sold | 0 | 1,540,215 | |||
Change in Benefit Obligations | |||||
Benefit obligations at beginning of year | 2,102 | 2,227 | |||
Service Cost | 1 | 24 | |||
Interest cost | 102 | 90 | 97 | ||
Participants' contributions | 0 | 1 | |||
Acquisitions/plan amendments | 0 | 40 | |||
Actuarial loss (gain) | 362 | -148 | |||
Foreign exchange impact | 0 | 0 | |||
Termination benefits | 5 | [1] | 11 | [1] | |
Curtailments and settlements | 0 | -12 | |||
Benefit payments | -154 | -131 | |||
Other | -12 | 0 | |||
Benefit obligations at end of year | 2,406 | 2,102 | 2,227 | ||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 1,736 | 1,597 | |||
Actual return on plan assets | 178 | 148 | |||
Company's benefit plan contributions | 23 | 121 | |||
Participants' contributions | 0 | 1 | |||
Foreign exchange impact | 0 | 0 | |||
Settlements | 0 | 0 | |||
Benefit payments | -154 | -131 | |||
Other | -12 | 0 | |||
Fair value of plan assets at end of year | 1,771 | 1,736 | 1,597 | ||
Funded Status | |||||
Benefit obligations at end of year | 2,406 | 2,102 | 2,227 | ||
Fair value of plan assets at end of year | 1,771 | 1,736 | 1,597 | ||
Net amount recognized | -635 | -366 | |||
Amounts Recognized in Balance Sheet | |||||
Noncurrent assets | 0 | 16 | |||
Current liabilities | -20 | -19 | |||
Noncurrent liabilities | -615 | -363 | |||
Net amount recognized | -635 | -366 | |||
Amounts recognized in Accumulated other comprehensive income consist of | |||||
Actuarial loss | 933 | 674 | |||
Transition/prior service cost | 2 | 3 | |||
Amounts recognized in accumulated other comprehensive income | 935 | 677 | |||
Accumulated benefit obligation | 2,283 | 1,995 | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||||
Discount Rate | 4.24% | 4.96% | |||
Long-term rate of return on plan assets | 6.80% | 6.80% | |||
Long-term rate of compensation increase | 3.50% | 3.50% | |||
ESOP growth rate | 0.00% | 0.00% | |||
Medical cost trend rate of increase | 0.00% | 0.00% | |||
Long-term rate of return on plan assets [Abstract] | |||||
Average annual rates of return for the most recent 1-year period | 11.00% | ||||
Average annual rates of return for the most recent 5-year period | 10.00% | ||||
Average annual rates of return for the most recent 10-year period | 7.00% | ||||
Average annual rates of return for the most recent 15-year period | 5.00% | ||||
Average annual rates of return for the most recent 25-year period | 8.00% | ||||
Components of Net Periodic Benefit Cost | |||||
Defined Benefit Plan, Service Cost | 1 | 24 | 24 | ||
Interest cost | 102 | 90 | 97 | ||
Annual ESOP allocation | 0 | 0 | 0 | ||
Expected return on plan assets | -112 | -118 | -112 | ||
Amortization of transition and prior service costs (credits) | 1 | 9 | 9 | ||
Amortization of actuarial loss | 37 | 68 | 62 | ||
Net periodic benefit cost | 29 | 73 | 80 | ||
Other postretirement charges | 5 | 102 | 0 | ||
Total pension cost | 34 | 175 | 80 | ||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||
Discount Rate | 4.96% | 4.14% | 4.90% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.80% | 7.30% | 7.75% | ||
Long-term rate of compensation increase | 3.50% | 3.50% | 4.00% | ||
ESOP growth rate | 0.00% | 0.00% | 0.00% | ||
Voluntary contributions to postretirement plans | 2 | 101 | 101 | ||
Total benefit payments [Abstract] | |||||
2015 | 139 | ||||
2016 | 139 | ||||
2017 | 139 | ||||
2018 | 139 | ||||
2019 | 140 | ||||
2020-2024 | 721 | ||||
Defined Benefit Plan Dividends Received On Employer Securities | 2 | 3 | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 0.00% | 0.00% | 0.00% | ||
United States | Real Estate [Member] | Level 3 [Member] | |||||
Change in Plan Assets | |||||
Fair value of plan assets at end of year | 46 | [2] | 40 | [2] | |
Funded Status | |||||
Fair value of plan assets at end of year | 46 | [2] | 40 | [2] | |
International Pension Benefits [Member] | |||||
Change in Benefit Obligations | |||||
Benefit obligations at beginning of year | 894 | 888 | |||
Service Cost | 17 | 19 | |||
Interest cost | 35 | 34 | 35 | ||
Participants' contributions | 4 | 3 | |||
Acquisitions/plan amendments | 0 | 2 | |||
Actuarial loss (gain) | 123 | -1 | |||
Foreign exchange impact | -88 | 12 | |||
Termination benefits | 0 | [1] | 0 | [1] | |
Curtailments and settlements | -28 | -21 | |||
Benefit payments | -40 | -41 | |||
Other | -1 | -1 | |||
Benefit obligations at end of year | 916 | 894 | 888 | ||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 558 | 486 | |||
Actual return on plan assets | 65 | 59 | |||
Company's benefit plan contributions | 36 | 61 | |||
Participants' contributions | 4 | 3 | |||
Foreign exchange impact | -43 | 2 | |||
Settlements | -27 | -11 | |||
Benefit payments | -40 | -41 | |||
Other | -1 | -1 | |||
Fair value of plan assets at end of year | 552 | 558 | 486 | ||
Funded Status | |||||
Benefit obligations at end of year | 916 | 894 | 888 | ||
Fair value of plan assets at end of year | 552 | 558 | 486 | ||
Net amount recognized | -364 | -336 | |||
Amounts Recognized in Balance Sheet | |||||
Noncurrent assets | 6 | 12 | |||
Current liabilities | -28 | -36 | |||
Noncurrent liabilities | -342 | -312 | |||
Net amount recognized | -364 | -336 | |||
Amounts recognized in Accumulated other comprehensive income consist of | |||||
Actuarial loss | 259 | 181 | |||
Transition/prior service cost | 19 | 23 | |||
Amounts recognized in accumulated other comprehensive income | 278 | 204 | |||
Accumulated benefit obligation | 817 | 802 | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||||
Discount Rate | 3.06% | 3.99% | |||
Long-term rate of return on plan assets | 5.05% | 5.50% | |||
Long-term rate of compensation increase | 2.83% | 3.02% | |||
ESOP growth rate | 0.00% | 0.00% | |||
Medical cost trend rate of increase | 0.00% | 0.00% | |||
Components of Net Periodic Benefit Cost | |||||
Defined Benefit Plan, Service Cost | 17 | 19 | 12 | ||
Interest cost | 35 | 34 | 35 | ||
Annual ESOP allocation | 0 | 0 | 0 | ||
Expected return on plan assets | -29 | -26 | -26 | ||
Amortization of transition and prior service costs (credits) | 4 | 2 | 2 | ||
Amortization of actuarial loss | 6 | 10 | 9 | ||
Net periodic benefit cost | 33 | 39 | 32 | ||
Other postretirement charges | -8 | 3 | 9 | ||
Total pension cost | 25 | 42 | 41 | ||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||
Discount Rate | 3.99% | 3.57% | 4.59% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.50% | 5.39% | 5.91% | ||
Long-term rate of compensation increase | 3.02% | 2.80% | 2.87% | ||
ESOP growth rate | 0.00% | 0.00% | 0.00% | ||
Total benefit payments [Abstract] | |||||
2015 | 63 | ||||
2016 | 45 | ||||
2017 | 55 | ||||
2018 | 54 | ||||
2019 | 64 | ||||
2020-2024 | 646 | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 0.00% | 0.00% | 0.00% | ||
International Pension Benefits [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 21 | [2] | 20 | ||
Earned income, net of management expenses | 0 | 0 | |||
Unrealized gain on investment | -1 | 0 | |||
Purchases, sales, issuances and settlements, net | -1 | 1 | |||
Fair value of plan assets at end of year | 19 | [2] | 21 | [2] | |
Funded Status | |||||
Fair value of plan assets at end of year | 19 | [2] | 21 | [2] | |
Pension Benefits [Member] | |||||
Benefit Obligation Exceeds Fair Value of Plan Assets | |||||
Projected benefit obligation | 2,958 | 1,130 | |||
Fair value of plan assets | 1,955 | 402 | |||
Accumulated benefit obligation | 2,725 | 700 | |||
Fair value of plan assets | 1,922 | 66 | |||
Estimated amounts that will be amortized from accumulated other comprehensive income [Abstract] | |||||
Net actuarial loss | 48 | ||||
Net transition & prior service cost | 11 | ||||
Other Retiree Benefits [Member] | |||||
Change in Benefit Obligations | |||||
Benefit obligations at beginning of year | 792 | 875 | |||
Service Cost | 10 | 11 | |||
Interest cost | 42 | 38 | 40 | ||
Participants' contributions | 0 | 0 | |||
Acquisitions/plan amendments | 0 | 0 | |||
Actuarial loss (gain) | 203 | -101 | |||
Foreign exchange impact | -3 | -5 | |||
Termination benefits | 0 | [1] | 6 | [1] | |
Curtailments and settlements | 0 | 0 | |||
Benefit payments | -33 | -32 | |||
Other | 0 | 0 | |||
Benefit obligations at end of year | 1,011 | 792 | 875 | ||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 41 | 37 | |||
Actual return on plan assets | 4 | 4 | |||
Company's benefit plan contributions | 29 | 32 | |||
Participants' contributions | 0 | 0 | |||
Foreign exchange impact | 0 | 0 | |||
Settlements | 0 | 0 | |||
Benefit payments | -33 | -32 | |||
Other | 0 | 0 | |||
Fair value of plan assets at end of year | 41 | 41 | 37 | ||
Funded Status | |||||
Benefit obligations at end of year | 1,011 | 792 | 875 | ||
Fair value of plan assets at end of year | 41 | 41 | 37 | ||
Net amount recognized | -970 | -751 | |||
Amounts Recognized in Balance Sheet | |||||
Noncurrent assets | 0 | 0 | |||
Current liabilities | -41 | -39 | |||
Noncurrent liabilities | -929 | -712 | |||
Net amount recognized | -970 | -751 | |||
Amounts recognized in Accumulated other comprehensive income consist of | |||||
Actuarial loss | 481 | 296 | |||
Transition/prior service cost | -3 | 1 | |||
Amounts recognized in accumulated other comprehensive income | 478 | 297 | |||
Accumulated benefit obligation | 0 | 0 | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||||
Discount Rate | 4.36% | 5.24% | |||
Long-term rate of return on plan assets | 6.80% | 6.80% | |||
Long-term rate of compensation increase | 0.00% | 0.00% | |||
ESOP growth rate | 10.00% | 10.00% | |||
Medical cost trend rate of increase | 7.00% | 7.00% | |||
Assumed medical cost trend rates [Abstract] | |||||
Ultimate medical cost trend rate | 5.00% | ||||
Year which ultimate medical cost trend rate is reached | 2021 | ||||
Effect of a 1% change in the assumed medical cost trend rate [Abstract] | |||||
Effect of one percentage point increase on accumulated postretirement benefit obligation | 150 | ||||
Effect of one percentage point decrease on accumulated postretirement benefit obligation | -119 | ||||
Effect of one percentage point increase on service and interest cost | 11 | ||||
Effect of one percentage point decrease on service and interest cost | -9 | ||||
Components of Net Periodic Benefit Cost | |||||
Defined Benefit Plan, Service Cost | 11 | 13 | 11 | ||
Interest cost | 42 | 38 | 40 | ||
Annual ESOP allocation | -1 | -2 | -2 | ||
Expected return on plan assets | -3 | -3 | -3 | ||
Amortization of transition and prior service costs (credits) | 3 | 1 | 3 | ||
Amortization of actuarial loss | 16 | 21 | 18 | ||
Net periodic benefit cost | 68 | 68 | 67 | ||
Other postretirement charges | 0 | 6 | 1 | ||
Total pension cost | 68 | 74 | 68 | ||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||
Discount Rate | 5.24% | 4.32% | 5.26% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.80% | 7.30% | 7.75% | ||
Long-term rate of compensation increase | 0.00% | 0.00% | 0.00% | ||
ESOP growth rate | 10.00% | 10.00% | 10.00% | ||
Estimated amounts that will be amortized from accumulated other comprehensive income [Abstract] | |||||
Net actuarial loss | 27 | ||||
Net transition & prior service cost | 3 | ||||
Total benefit payments [Abstract] | |||||
2015 | 42 | ||||
2016 | 43 | ||||
2017 | 44 | ||||
2018 | 45 | ||||
2019 | 46 | ||||
2020-2024 | 247 | ||||
Other Post-Retirement Plan, Benefit Obligation, Percentage Increase Due To Expected Mortality Update In The Current Year | 9.00% | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.00% | 7.50% | 8.00% | ||
Other Retiree Benefits [Member] | Real Estate [Member] | Level 3 [Member] | |||||
Change in Plan Assets | |||||
Fair value of plan assets at end of year | 1 | [2] | 1 | [2] | |
Funded Status | |||||
Fair value of plan assets at end of year | 1 | [2] | 1 | [2] | |
Two Thousand Twelve Restructuring Program [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring Reserve, Charges Against Assets | 31 | 44 | 0 | ||
Two Thousand Twelve Restructuring Program [Member] | Other Restructuring [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Restructuring Reserve, Charges Against Assets | $0 | $0 | $0 | ||
[1] | Represents pension and other retiree benefit enhancements incurred in 2014 and 2013 pursuant to the 2012 Restructuring Program. | ||||
[2] | Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. Since the appraisals include unobservable inputs, these investments are classified as Level 3. These unobservable inputs may include items such as annual gross rents, projected vacancy rates, collection losses and recovery rates, yield rates, growth assumptions and risk adjusted discount rates. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
country_and_territory | |||||
Components of income before income taxes [Abstract] | |||||
United States | $1,094 | $1,018 | $1,155 | ||
International | 2,439 | 2,547 | 2,719 | ||
Total Income before income taxes | 3,533 | 3,565 | 3,874 | ||
Provision for income taxes [Abstract] | |||||
United States | 348 | 314 | 395 | ||
International | 846 | 841 | 848 | ||
Total Provision for income taxes | 1,194 | 1,155 | 1,243 | ||
Income tax provision reconciliation [Abstract] | |||||
Goodwill and intangible assets | -40 | -14 | -7 | ||
Property, plant and equipment | -13 | 0 | -13 | ||
Pension and other retiree benefits | 19 | 85 | -14 | ||
Stock-based compensation | 11 | 10 | 5 | ||
Tax loss and tax credit carryforwards | 5 | -30 | -39 | ||
Other, net | -19 | -33 | 32 | ||
Total deferred tax provision | -37 | 18 | -36 | ||
Effective Tax Rate Reconciliation [Abstract] | |||||
Tax at United States statutory rate | 35.00% | 35.00% | 35.00% | ||
State income taxes, net of federal benefit | 0.70% | 0.40% | 0.70% | ||
Earnings taxed at other than United States statutory rate | -2.30% | -1.40% | -2.60% | ||
Charge for a foreign tax matter | 1.90% | [1] | 0.00% | [1] | 0.00% |
Other, net | -1.50% | -1.60% | -1.00% | ||
Effective tax rate | 33.80% | 32.40% | 32.10% | ||
Deferred tax liabilities: | |||||
Goodwill and intangible assets | -497 | -475 | |||
Property, plant and equipment | -380 | -375 | |||
Other | -266 | -237 | |||
Deferred tax liabilities, total | -1,143 | -1,087 | |||
Deferred tax assets: | |||||
Pension and other retiree benefits | 638 | 448 | |||
Tax loss and tax credit carryforwards | 33 | 28 | |||
Accrued liabilities | 276 | 317 | |||
Stock-based compensation | 119 | 116 | |||
Other | 148 | 95 | |||
Deferred tax assets, total | 1,214 | 1,004 | |||
Net deferred income taxes | 71 | -83 | |||
Deferred taxes included within: | |||||
Other current assets | 256 | 284 | |||
Deferred tax assets, noncurrent | 76 | 77 | |||
Deferred tax liabilities, noncurrent | -261 | -444 | |||
Net deferred income taxes | 71 | -83 | |||
Undistributed earnings of foreign subsidiaries | 4,900 | ||||
Minimum Number Of Countries And Territories Serving Consumers | 200 | ||||
Income Tax Effects Allocated Directly to Equity | 251 | 116 | 80 | ||
Unrecognized tax benefits: | |||||
Balance, January 1 | 199 | 212 | 176 | ||
Increases as a result of tax positions taken during the current year | 23 | 23 | 34 | ||
Decreases of tax positions taken during prior years | -11 | -52 | -6 | ||
Increases of tax positions taken during prior years | 32 | 37 | 10 | ||
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations | -10 | -22 | -3 | ||
Effect of foreign currency rate movements | -15 | 1 | 1 | ||
Balance, December 31 | 218 | 199 | 212 | ||
Unrecognized tax benefits that would impact effective tax rate | 195 | ||||
Interest (income) expense recognized related to unrecognized tax benefits | 4 | 5 | 5 | ||
Accrued interest related to unrecognized tax benefits | 24 | 24 | 19 | ||
Income Taxes [Line Items] | |||||
Accrual for Taxes Other than Income Taxes, Current | $122 | $131 | |||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Statue Of Limitations Of Certain Foreign Entities | 3 years | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Statue Of Limitations Of Certain Foreign Entities | 6 years | ||||
[1] | The charge for a foreign tax matter relates to a notice of an adverse decision in a foreign court regarding a tax position taken in prior years received by the Company in the second quarter of 2014. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Income [Abstract] | |||||||||||||||||||||
Basic EPS | $2,180 | $2,241 | $2,472 | ||||||||||||||||||
Diluted EPS | $2,180 | $2,241 | $2,472 | ||||||||||||||||||
Shares [Abstract] | |||||||||||||||||||||
Basic EPS (in shares) | 915,100,000 | 930,800,000 | 952,100,000 | ||||||||||||||||||
Stock options and restricted stock (in shares) | 9,200,000 | 9,100,000 | 8,100,000 | ||||||||||||||||||
Diluted EPS (in shares) | 924,300,000 | 939,900,000 | 960,200,000 | ||||||||||||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||||||||||||
Basic EPS (in dollars per share) | $0.69 | [1] | $0.59 | [2] | $0.68 | [3] | $0.42 | [4] | $0.61 | [5] | $0.71 | [6] | $0.60 | [7] | $0.49 | [8] | $2.38 | [9] | $2.41 | [10] | $2.60 |
Earnings Per Share, Diluted [Abstract] | |||||||||||||||||||||
Diluted EPS (in dollars per share) | $0.68 | [1] | $0.59 | [2] | $0.67 | [3] | $0.42 | [4] | $0.60 | [5] | $0.70 | [6] | $0.60 | [7] | $0.48 | [8] | $2.36 | [9] | $2.38 | [10] | $2.57 |
Employee Stock Option [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,729,511 | 1,785,032 | 3,504,608 | ||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,311 | 3,709 | 2,252 | ||||||||||||||||||
[1] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program and a $30 charge for a European competition law matter. | ||||||||||||||||||||
[2] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program, a $40 aftertax charge related to the 2014 Venezuela Remeasurements, an $11 charge for a European competition law matter, $1 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
[3] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2014 include $53 of aftertax charges related to the 2012 Restructuring Program and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[4] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2014 include $73 of aftertax charges related to the 2012 Restructuring Program, a $174 aftertax charge related to the 2014 Venezuela Remeasurements and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[5] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2013 include $125 of aftertax charges related to the 2012 Restructuring Program, a $5 charge for a European competition law matter and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[6] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2013 include $22 of aftertax charges related to the 2012 Restructuring Program and $2 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[7] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2013 include $79 of aftertax charges related to the 2012 Restructuring Program, an $18 charge for a European competition law matter and $4 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[8] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2013 include $52 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[9] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
[10] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
country_and_territory | ||||
Operating leases,minimum rental commitments[Abstract] | ||||
Minimum rental commitments under noncancellable operating leases due within one year of the balance sheet date | $201 | |||
Minimum rental commitments under noncancellable operating leases due in two years of the balance sheet date | 170 | |||
Minimum rental commitments under noncancellable operating leases due in three years of the balance sheet date | 148 | |||
Minimum rental commitments under noncancellable operating leases due in four years of the balance sheet date | 138 | |||
Minimum rental commitments under noncancellable operating leases due in five years of the balance sheet date | 126 | |||
Minimum rental commitments under noncancellable operating leases due after five years of the balance sheet date | 280 | |||
Operating leases, rental expense [Abstract] | ||||
Rental expense | 234 | 232 | 228 | |
Contractual commitments (Abstract) | ||||
Contractual commitments, amount | 774 | |||
Contingencies [Abstract] | ||||
Minimum Number Of Countries And Territories Serving Consumers | 200 | |||
Loss Contingency, Range of Possible Loss, Minimum | 0 | |||
Loss Contingency, Range of Possible Loss, Maximum | 200 | |||
Brazilian internal revenue authority, matter 1 | 107 | |||
Brazilian internal revenue authority, matter 2 | 66 | |||
European competition matters - Swiss competition law authority | 6 | |||
European competition matters - Spanish competition law authority | 3 | |||
European competition matters - Italian competition law authority | 3 | |||
European competition matters - Hill's France Subsidiary | 7 | |||
Fine Imposed French Competition Authority | 57 | |||
Fine Imposed French Competition Authority - As a result of Sanex Acquisition | 25 | |||
ERISA Matter | $40 |
Venezuela_Details
Venezuela (Details) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | CP Venezuela [Member] | CP Venezuela [Member] | CP Venezuela [Member] | CP Venezuela [Member] | CP Venezuela [Member] | VENEZUELA | VENEZUELA | VENEZUELA | VENEZUELA | |
USD ($) | USD ($) | USD ($) | USD ($) | Sales Revenue, Net [Member] | USD ($) | USD ($) | VEF | VEF | ||||
Foreign Currency [Line Items] | ||||||||||||
Official Exchange Rate | 6.3 | 4.3 | ||||||||||
SICAD Exchange Rate | 12 | |||||||||||
Venezuela remeasurement charges | $327 | $172 | $0 | $327 | $172 | |||||||
Venezuela Remeasurement Charges Aftertax | 40 | 174 | 214 | 111 | 111 | 111 | ||||||
Impact of Aftertax Remeasurement Charge Per Common Share, Diluted | $0.23 | $0.12 | ||||||||||
Percentage Of Consolidated Net sales Represented By CP Venezuela | 3.00% | |||||||||||
Bolivar Denominated Monetary Net Asset Position | 549 | |||||||||||
Bolivar Denominated Non Monetary Asset Position | 310 | |||||||||||
Bolivar Denominated Non Monetary Fixed Asset Position | 235 | |||||||||||
Total Investment in CP Venezuela Including Intercompany Payables | $955 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
business_segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Product Segments | 2 | |||||||||||
Venezuela remeasurement charges | $327 | $172 | $0 | |||||||||
Charges for European Competition Law Matters | 30 | 11 | 5 | 18 | 41 | 23 | ||||||
Business realignment and other cost-saving initiatives | 21 | |||||||||||
Total Net sales | 17,277 | 17,420 | 17,085 | |||||||||
Total Operating profit | 3,557 | 3,556 | 3,889 | |||||||||
Total Capital expenditures | 757 | 670 | 565 | |||||||||
Total Depreciation and amortization | 442 | 439 | 425 | |||||||||
Total Identifiable assets | 13,459 | [1] | 13,985 | [1] | 13,459 | [1] | 13,985 | [1] | 13,394 | [1] | ||
Percentage Of Corporate Identifiable Assets Consisting Of Derivative Instruments | 62.00% | 32.00% | 62.00% | 32.00% | 67.00% | |||||||
Percentage Of Corporate Identifiable Assets Consisting Of Investments In Equity Securities | 22.00% | 41.00% | 22.00% | 41.00% | 28.00% | |||||||
Total Long Lived Assets | 8,086 | 8,248 | 8,086 | 8,248 | 8,066 | |||||||
MEXICO | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Pretax costs related to sale of land in Mexico | 4 | 18 | 24 | |||||||||
UNITED STATES | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 2,835 | 2,771 | 2,669 | |||||||||
UNITED STATES | Pet Nutrition [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 1,149 | 1,116 | 1,052 | |||||||||
CP Venezuela [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Venezuela remeasurement charges | 327 | 172 | ||||||||||
Operating Segments [Member] | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 15,022 | 15,209 | 14,925 | |||||||||
Total Operating profit | 4,053 | 4,083 | 3,897 | |||||||||
Total Capital expenditures | 580 | 497 | 455 | |||||||||
Total Depreciation and amortization | 308 | 312 | 307 | |||||||||
Total Identifiable assets | 12,268 | 12,832 | 12,268 | 12,832 | 12,263 | |||||||
Operating Segments [Member] | Pet Nutrition [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 2,255 | [2] | 2,211 | [2] | 2,160 | [2] | ||||||
Total Operating profit | 592 | 563 | 589 | |||||||||
Total Capital expenditures | 40 | 45 | 37 | |||||||||
Total Depreciation and amortization | 52 | 51 | 50 | |||||||||
Total Identifiable assets | 1,051 | 1,087 | 1,051 | 1,087 | 1,045 | |||||||
Operating Segments [Member] | North America [Member] | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 3,124 | [3] | 3,072 | [3] | 2,971 | [3] | ||||||
Total Operating profit | 926 | 927 | 810 | |||||||||
Total Capital expenditures | 136 | 54 | 43 | |||||||||
Total Depreciation and amortization | 43 | 51 | 50 | |||||||||
Total Identifiable assets | 2,326 | 2,301 | 2,326 | 2,301 | 2,157 | |||||||
Operating Segments [Member] | Latin America [Member] | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 4,769 | 5,012 | 5,032 | |||||||||
Total Operating profit | 1,279 | 1,385 | 1,454 | |||||||||
Total Capital expenditures | 205 | 235 | 237 | |||||||||
Total Depreciation and amortization | 93 | 93 | 91 | |||||||||
Total Identifiable assets | 3,693 | 4,202 | 3,693 | 4,202 | 4,288 | |||||||
Operating Segments [Member] | Europe/South Pacific | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 3,406 | 3,396 | 3,417 | |||||||||
Total Operating profit | 877 | 805 | 747 | |||||||||
Total Capital expenditures | 78 | 74 | 71 | |||||||||
Total Depreciation and amortization | 84 | 85 | 85 | |||||||||
Total Identifiable assets | 3,836 | 3,978 | 3,836 | 3,978 | 3,649 | |||||||
Operating Segments [Member] | Asia [Member] | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 2,515 | 2,472 | 2,264 | |||||||||
Total Operating profit | 736 | 698 | 619 | |||||||||
Total Capital expenditures | 147 | 123 | 88 | |||||||||
Total Depreciation and amortization | 78 | 72 | 70 | |||||||||
Total Identifiable assets | 1,903 | 1,794 | 1,903 | 1,794 | 1,608 | |||||||
Operating Segments [Member] | Africa/Eurasia [Member] | Oral, Personal and Home Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Net sales | 1,208 | 1,257 | 1,241 | |||||||||
Total Operating profit | 235 | 268 | 267 | |||||||||
Total Capital expenditures | 14 | 11 | 16 | |||||||||
Total Depreciation and amortization | 10 | 11 | 11 | |||||||||
Total Identifiable assets | 510 | 557 | 510 | 557 | 561 | |||||||
Corporate, Non-Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Operating profit | -1,088 | -1,090 | -597 | |||||||||
Total Capital expenditures | 137 | 128 | 73 | |||||||||
Total Depreciation and amortization | 82 | 76 | 68 | |||||||||
Total Identifiable assets | 140 | [4] | 66 | [4] | 140 | [4] | 66 | [4] | 86 | [4] | ||
Two Thousand Twelve Restructuring Program [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Pretax charges related to the 2012 Restructuring Program | $286 | $371 | $89 | |||||||||
Sales Revenue, Net [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percentage of Consolidated Net Sales represented by Sales outside US | 80.00% | 80.00% | ||||||||||
Percentage of Consolidated Net Sales coming from Emerging Markets | 50.00% | 50.00% | ||||||||||
[1] | Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $8,086, $8,248 and $8,066 in 2014, 2013 and 2012, respectively. | |||||||||||
[2] | Net sales in the U.S. for Pet Nutrition were $1,149, $1,116 and $1,052 in 2014, 2013 and 2012, respectively. | |||||||||||
[3] | Net sales in the U.S. for Oral, Personal and Home Care were $2,835, $2,771 and $2,669 in 2014, 2013 and 2012, respectively. | |||||||||||
[4] | In 2014, Corporate identifiable assets primarily consist of derivative instruments (62%) and investments in equity securities (22%). In 2013, Corporate identifiable assets primarily consist of derivative instruments (32%) and investments in equity securities (41%). In 2012, Corporate identifiable assets primarily consist of derivative instruments (67%) and investments in equity securities (28%). |
Supplemental_Income_Statement_2
Supplemental Income Statement Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other (income) expense, net | |||||||
Amortization of intangible assets | $32 | $32 | $31 | ||||
Charges for European Competition Law Matters | 30 | 11 | 5 | 18 | 41 | 23 | |
Other (income) expense, net | 570 | 422 | 113 | ||||
Interest (income) expense, net | |||||||
Interest incurred | 134 | 119 | 81 | ||||
Interest Capitalized | -4 | -3 | -1 | ||||
Interest income | -106 | -125 | -65 | ||||
Total Interest (income) expense, net | 24 | -9 | 15 | ||||
Research and development | 277 | 267 | 259 | ||||
Advertising | 1,784 | 1,891 | 1,792 | ||||
Other (income) expense, net | |||||||
Other (income) expense, net | |||||||
Amortization of intangible assets | 32 | 32 | 31 | ||||
Pretax charges related to the 2012 Restructuring Program | 195 | 202 | 81 | ||||
Venezuela Remeasurement Charges | 327 | 172 | 0 | ||||
Charges for European Competition Law Matters | 41 | 23 | 0 | ||||
Pretax costs related to sale of land in Mexico | 0 | 3 | 0 | ||||
Business realignment and other cost-saving initiatives | 0 | 0 | 2 | ||||
Equity (income) | -7 | -5 | -7 | ||||
Total Other (income) expense, net | -18 | -5 | 6 | ||||
Other (income) expense, net | $570 | $422 | $113 |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw materials and supplies | $349 | $340 |
Work-in-process | 55 | 60 |
Finished goods | 978 | 1,025 |
Total Inventories | 1,382 | 1,425 |
LIFO Inventory Amount | 287 | 289 |
Excess of Replacement or Current Costs over Stated LIFO Value | 18 | 37 |
Property, Plant and Equipment [Abstract] | ||
Land | 250 | 254 |
Buildings | 1,660 | 1,625 |
Manufacturing machinery and equipment | 5,220 | 5,220 |
Other equipment | 1,255 | 1,231 |
Property, plant and equipment, gross | 8,385 | 8,330 |
Accumulated depreciation | -4,305 | -4,247 |
Total Property, plant and equipment, net | 4,080 | 4,083 |
Other liabilities | ||
Pension and other retiree benefits | 1,886 | 1,387 |
Restructuring Reserve, Noncurrent | 78 | 16 |
Other | 259 | 274 |
Total Other liabilities | $2,223 | $1,677 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information Supplemental Other Accruals (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ||
Accrued advertising and coupon redemption | $550 | $676 |
Accrued payroll and employee benefits | 332 | 361 |
Accrual for Taxes Other than Income Taxes, Current | 122 | 131 |
Restructuring Reserve, Current | 114 | 142 |
Pension and other retiree benefits | 89 | 94 |
Accrued interest | 28 | 27 |
Derivative Liability, Current | 5 | 11 |
Other | 677 | 647 |
Total Other accruals | $1,917 | $2,089 |
Supplemental_Comprehensive_Inc2
Supplemental Comprehensive Income (Loss) Information (Details) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | |||
USD ($) | USD ($) | USD ($) | VENEZUELA | VENEZUELA | ||||
VEF | VEF | |||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Cumulative translation adjustments, before-tax | ($663) | ($188) | $18 | |||||
Cumulative translation adjustment, net-of-tax | -681 | -163 | -20 | |||||
Pension and other benefits: | ||||||||
Net actuarial loss & prior service costs arising during the period, before-tax | -580 | 295 | -317 | |||||
Net actuarial loss & prior service costs arising during the period, net-of-tax | -374 | 189 | -207 | |||||
Amortization of net actuarial loss, transition & prior service costs, before-tax | 67 | [1] | 111 | [1] | 101 | [1] | ||
Amortization of net actuarial loss, transition & prior service costs, net-of-tax | 45 | [1] | 70 | [1] | 62 | [1] | ||
Curtailment Loss Unamortized Prior Service Costs, before tax | 0 | [1] | 91 | [1] | 0 | [1] | ||
Curtailment Loss Unamortized Prior Service Costs, net-of-tax | 0 | [1] | 59 | [1] | 0 | [1] | ||
Retirement Plan and other retiree benefit adjustments, before-tax | -513 | 497 | -216 | |||||
Retirement Plan and other retiree benefit adjustments, net-of-tax | -329 | 318 | -145 | |||||
Available-for-sale securities: | ||||||||
Unrealized gains (losses) on available-for-sale securities, before-tax | -341 | [2] | -113 | [2] | 28 | [2] | ||
Unrealized gains (losses) on available-for-sale securities, net-of-tax | -222 | [2] | -73 | [2] | 18 | [2] | ||
Reclassification of (gains) losses into net earnings on available-for-sale securities, before-tax | 267 | [3] | 133 | [3] | 0 | [3] | ||
Reclassification of (gains) losses into net earnings on available-for-sale securities, net-of-tax | 174 | [3] | 86 | [3] | 0 | [3] | ||
Gains (losses) on available-for-sale securities, before-tax | -74 | 20 | 28 | |||||
Gains (losses) on available-for-sale securities, net-of-tax | -48 | 13 | 18 | |||||
Cash flow hedges: | ||||||||
Unrealized gains (losses) on cash flow hedges, before-tax | 9 | 20 | 13 | |||||
Unrealized gains (losses) on cash flow hedges, net-of-tax | 6 | 13 | 8 | |||||
Reclassification of (gains) losses into net earnings on cash flow hedges, before-tax | -5 | [4] | -17 | [4] | -11 | [4] | ||
Reclassification of (gains) losses into net earnings on cash flow hedges, net of tax | -4 | [4] | -11 | [4] | -7 | [4] | ||
Gains (losses) on cash flow hedges, before-tax | 4 | 3 | 2 | |||||
Gains (losses) on cash flow hedges, net-of-tax | 2 | 2 | 1 | |||||
Total Other comprehensive income (loss), before-tax | -1,246 | 332 | -168 | |||||
Total Other comprehensive income (loss), net-of-tax | -1,056 | 170 | -146 | |||||
Remeasurement Due To Change in Foreign Exchange Rates [Abstract] | ||||||||
Loss (gain) related to the remeasurement of fixed interest rate and devaluation-protected bonds in Venezuela | 324 | |||||||
Loss related to the remeasurement of fixed interest rate bonds in Venezuela | $133 | |||||||
Foreign Currency [Line Items] | ||||||||
Official Exchange Rate | 6.3 | 4.3 | ||||||
[1] | These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. | |||||||
[2] | For the year ended December 31, 2014, these amounts included pretax net losses of $324 related to the remeasurement of the bolivar denominated fixed interest rate bonds and the devaluation-protected bonds in Venezuela. For the year ended December 31, 2013, these amounts included pretax losses of $133 related only to the remeasurement of the bolivar denominated fixed interest rate bonds in Venezuela as a result of the devaluation in the first quarter of 2013. No remeasurement charge was required on the devaluation-protected bonds in the first quarter of 2013 since the official exchange rate changed from 4.30 to 6.30 bolivares per dollar and the devaluation-protected bonds revalued to the official exchange rate. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | |||||||
[3] | Represents reclassification of losses on the Venezuela bonds into Other (income) expense, net due to an impairment in the fair value of the bonds as a result of the effective devaluations in the first and third quarters of 2014 and the devaluation in 2013. See Note 7, Fair Value Measurements and Financial Instruments for additional details. | |||||||
[4] | These (gains) losses are reclassified into Cost of sales. See Note 7, Fair Value Measurements and Financial Instruments for additional details. |
Supplemental_Comprehensive_Inc3
Supplemental Comprehensive Income (Loss) Information (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Unrecognized pension and other retiree benefit costs, aftertax | $1,064 | $735 |
Foreign currency translation adjustments | $2,453 | $1,772 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Charge for a foreign tax matter | $66 | $66 | |||||||||||||||||||
Charges for European Competition Law Matters | 30 | 11 | 5 | 18 | 41 | 23 | |||||||||||||||
Net sales | 4,221 | 4,379 | 4,352 | 4,325 | 4,361 | 4,398 | 4,346 | 4,315 | 17,277 | 17,420 | 17,085 | ||||||||||
Gross profit | 2,475 | [1] | 2,558 | [2] | 2,552 | [3] | 2,524 | [4] | 2,567 | [5] | 2,585 | [6] | 2,534 | [7] | 2,515 | [8] | 10,109 | [9] | 10,201 | [10] | 9,932 |
Net income including noncontrolling interests | 666 | [11] | 580 | [12] | 661 | [13] | 432 | [14] | 601 | [15] | 699 | [16] | 604 | [17] | 506 | [18] | 2,339 | [19] | 2,410 | [20] | 2,631 |
Net income attributable to Colgate-Palmolive Company | 628 | [11] | 542 | [12] | 622 | [13] | 388 | [14] | 564 | [15] | 656 | [16] | 561 | [17] | 460 | [18] | 2,180 | [19] | 2,241 | [20] | 2,472 |
Earnings per common share: | |||||||||||||||||||||
Basic EPS (in dollars per share) | $0.69 | [11] | $0.59 | [12] | $0.68 | [13] | $0.42 | [14] | $0.61 | [15] | $0.71 | [16] | $0.60 | [17] | $0.49 | [18] | $2.38 | [19] | $2.41 | [20] | $2.60 |
Diluted EPS (in dollars per share) | $0.68 | [11] | $0.59 | [12] | $0.67 | [13] | $0.42 | [14] | $0.60 | [15] | $0.70 | [16] | $0.60 | [17] | $0.48 | [18] | $2.36 | [19] | $2.38 | [20] | $2.57 |
MEXICO | |||||||||||||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Pretax costs related to sale of land in Mexico | 4 | 18 | 24 | ||||||||||||||||||
Aftertax costs related to sale of land | 1 | 1 | 1 | 3 | 2 | 4 | 3 | 3 | 12 | 18 | |||||||||||
CP Venezuela [Member] | |||||||||||||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Venezuela Remeasurement Charges Aftertax | 40 | 174 | 214 | 111 | |||||||||||||||||
Two Thousand Twelve Restructuring Program [Member] | |||||||||||||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Pretax charges related to the 2012 Restructuring Program | 286 | 371 | 89 | ||||||||||||||||||
Aftertax charges related to the 2012 Restructuring Program | 41 | 41 | 53 | 73 | 125 | 22 | 79 | 52 | 208 | 278 | 70 | ||||||||||
Gross Profit [Member] | Two Thousand Twelve Restructuring Program [Member] | |||||||||||||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Pretax charges related to the 2012 Restructuring Program | 6 | 7 | 6 | 10 | 6 | 8 | 10 | 8 | 29 | 32 | 2 | ||||||||||
Cost of Sales [Member] | MEXICO | |||||||||||||||||||||
Quarterly financial data (Unaudited) [Abstract] | |||||||||||||||||||||
Pretax costs related to sale of land in Mexico | $1 | $2 | $1 | $4 | $3 | $4 | $4 | $4 | $15 | ||||||||||||
[1] | Gross profit for the fourth quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program. | ||||||||||||||||||||
[2] | Gross profit for the third quarter of 2014 includes $7 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[3] | Gross profit for the second quarter of 2014 includes $6 of charges related to the 2012 Restructuring Program and $2 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[4] | Gross profit for the first quarter of 2014 includes $10 of charges related to the 2012 Restructuring Program and $1 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[5] | Gross profit for the fourth quarter of 2013 includes $6 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[6] | Gross profit for the third quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $3 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[7] | Gross profit for the second quarter of 2013 includes $10 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[8] | Gross profit for the first quarter of 2013 includes $8 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[9] | Gross profit for the full year of 2014 includes $29 of charges related to the 2012 Restructuring Program and $4 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[10] | Gross profit for the full year of 2013 includes $32 of charges related to the 2012 Restructuring Program and $15 of costs related to the sale of land in Mexico. | ||||||||||||||||||||
[11] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program and a $30 charge for a European competition law matter. | ||||||||||||||||||||
[12] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2014 include $41 of aftertax charges related to the 2012 Restructuring Program, a $40 aftertax charge related to the 2014 Venezuela Remeasurements, an $11 charge for a European competition law matter, $1 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
[13] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2014 include $53 of aftertax charges related to the 2012 Restructuring Program and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[14] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2014 include $73 of aftertax charges related to the 2012 Restructuring Program, a $174 aftertax charge related to the 2014 Venezuela Remeasurements and $1 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[15] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the fourth quarter of 2013 include $125 of aftertax charges related to the 2012 Restructuring Program, a $5 charge for a European competition law matter and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[16] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the third quarter of 2013 include $22 of aftertax charges related to the 2012 Restructuring Program and $2 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[17] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the second quarter of 2013 include $79 of aftertax charges related to the 2012 Restructuring Program, an $18 charge for a European competition law matter and $4 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[18] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the first quarter of 2013 include $52 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement and $3 of aftertax costs related to the sale of land in Mexico. | ||||||||||||||||||||
[19] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2014 include $208 of aftertax charges related to the 2012 Restructuring Program, $214 of aftertax charges related to the 2014 Venezuela Remeasurements, $41 of charges for European competition law matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a foreign tax matter. | ||||||||||||||||||||
[20] | Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and earnings per common share for the full year of 2013 include $278 of aftertax charges related to the 2012 Restructuring Program, a $111 aftertax charge related to the 2013 Venezuela Remeasurement, a $23 charge for a European competition law matter and $12 of aftertax costs related to the sale of land in Mexico. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts and estimated returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | $67 | $61 | $49 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 15 | 18 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 13 | 9 | 6 |
Valuation Allowances and Reserves, Ending Balance | 54 | 67 | 61 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | 6 | 1 | 1 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 6 | 0 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 6 | 1 | 0 |
Valuation Allowances and Reserves, Ending Balance | $0 | $6 | $1 |