Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | COLGATE PALMOLIVE CO |
Entity Central Index Key | 21,665 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Entity Common Stock, Shares Outstanding | 891,493,130 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Trading Symbol | CL |
Document Period End Date | Jun. 30, 2016 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016Dividend | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015Dividend | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | ||
Income Statement [Abstract] | |||||||
Net sales | $ 3,845 | $ 4,066 | $ 7,607 | $ 8,136 | |||
Cost of sales | 1,541 | 1,699 | 3,055 | 3,377 | |||
Gross profit | 2,304 | 2,367 | 4,552 | 4,759 | |||
Selling, general and administrative expenses | 1,320 | 1,381 | 2,674 | 2,831 | |||
Other (income) expense, net | 40 | 54 | 67 | 136 | |||
Operating profit | 944 | 932 | 1,811 | 1,792 | |||
Interest (income) expense, net | 25 | 6 | 53 | 14 | |||
Income before income taxes | 919 | 926 | 1,758 | 1,778 | |||
Provision for income taxes | 281 | 310 | 546 | 579 | |||
Net income including noncontrolling interests | 638 | 616 | 1,212 | 1,199 | |||
Less: Net income attributable to noncontrolling interests | 38 | 42 | 79 | 83 | |||
Net income attributable to Colgate-Palmolive Company | $ 600 | $ 574 | $ 1,133 | $ 1,116 | |||
Earnings per common share, basic (in dollars per share) | $ / shares | $ 0.67 | $ 0.63 | $ 1.27 | $ 1.23 | |||
Earnings per common share, diluted (in dollars per share) | $ / shares | 0.67 | 0.63 | 1.26 | 1.22 | |||
Dividends declared per common share (in dollars per share) | $ / shares | [1] | $ 0.39 | $ 0.38 | $ 1.16 | $ 1.12 | ||
Number of dividends declared per quarter (in dividends) | Dividend | 2 | 2 | |||||
[1] | Two dividends were declared in the first quarter of 2016 and 2015. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 638 | $ 616 | $ 1,212 | $ 1,199 |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustments | (43) | 66 | 83 | (285) |
Retirement plans and other retiree benefit adjustments | 12 | 14 | 23 | 27 |
Gains (losses) on available-for-sale securities | 0 | (7) | 0 | (8) |
Gains (losses) on cash flow hedges | 7 | (3) | (4) | (3) |
Total Other comprehensive income (loss), net of tax | (24) | 70 | 102 | (269) |
Total Comprehensive income including noncontrolling interests | 614 | 686 | 1,314 | 930 |
Less: Net income attributable to noncontrolling interests | 38 | 42 | 79 | 83 |
Less: Cumulative translation adjustments attributable to noncontrolling interests | (6) | (1) | (5) | 0 |
Total Comprehensive income attributable to noncontrolling interests | 32 | 41 | 74 | 83 |
Total Comprehensive income attributable to Colgate-Palmolive Company | $ 582 | $ 645 | $ 1,240 | $ 847 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Current Assets | |||
Cash and cash equivalents | $ 1,085 | $ 970 | |
Receivables (net of allowances of $65 and $59, respectively) | 1,575 | 1,427 | |
Inventories | 1,232 | 1,180 | |
Other current assets | 722 | 807 | |
Total current assets | 4,614 | 4,384 | |
Property, plant and equipment: | |||
Cost | 8,247 | 8,059 | |
Less: Accumulated depreciation | (4,422) | (4,263) | |
Property, plant and equipment, net | 3,825 | 3,796 | |
Goodwill | 2,170 | 2,103 | |
Other intangible assets, net | 1,347 | 1,346 | |
Deferred income taxes | 311 | 67 | |
Other assets | 248 | 239 | |
Total assets | 12,515 | 11,935 | |
Current Liabilities | |||
Notes and loans payable | 3 | 4 | |
Current portion of long-term debt | 950 | 298 | |
Accounts payable | 1,082 | 1,110 | |
Accrued income taxes | 364 | 277 | |
Other accruals | 2,272 | 1,845 | |
Total current liabilities | 4,671 | 3,534 | |
Long-term debt | 5,619 | 6,246 | |
Deferred income taxes | 258 | 233 | |
Other liabilities | 1,933 | 1,966 | |
Total liabilities | 12,481 | 11,979 | |
Shareholders’ Equity | |||
Common stock | 1,466 | 1,466 | |
Additional paid-in capital | 1,542 | 1,438 | |
Retained earnings | 18,955 | 18,861 | |
Accumulated other comprehensive income (loss) | (3,843) | (3,950) | |
Unearned compensation | (5) | (12) | |
Treasury stock, at cost | (18,396) | (18,102) | |
Total Colgate-Palmolive Company shareholders’ equity | (281) | (299) | |
Noncontrolling interests | 315 | 255 | |
Total equity | 34 | (44) | |
Total liabilities and equity | $ 12,515 | $ 11,935 | |
[1] | Prior year amounts have been reclassified to conform to the current year presentation of debt issuance costs required by Accounting Standards Update (“ASU”) No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” See Note 1 to the Condensed Consolidated Financial Statements for additional information. |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 65 | $ 59 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Operating Activities | |||
Net income including noncontrolling interests | $ 1,212 | $ 1,199 | |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||
Depreciation and amortization | 215 | 225 | |
Restructuring and termination benefits, net of cash | 8 | 59 | |
Venezuela remeasurement charge | 0 | 16 | |
Stock-based compensation expense | 48 | 51 | |
Deferred income taxes | (41) | (60) | |
Voluntary benefit plan contribution | (50) | 0 | |
Cash effects of changes in: | |||
Receivables | (132) | (222) | |
Inventories | (35) | 8 | |
Accounts payable and other accruals | 69 | (77) | |
Other non-current assets and liabilities | 26 | 24 | |
Net cash provided by operations | 1,320 | 1,223 | |
Investing Activities | |||
Capital expenditures | (248) | (280) | |
Purchases of marketable securities and investments | (183) | (365) | |
Proceeds from sale of marketable securities and investments | 87 | 195 | |
Other | 4 | 12 | |
Net cash used in investing activities | (340) | (438) | |
Financing Activities | |||
Principal payments on debt | (4,078) | (4,178) | |
Proceeds from issuance of debt | 4,123 | 4,686 | |
Dividends paid | (704) | (689) | |
Purchases of treasury shares | (482) | (767) | |
Proceeds from exercise of stock options and excess tax benefits | 274 | 192 | |
Net cash used in financing activities | (867) | (756) | |
Effect of exchange rate changes on Cash and cash equivalents | 2 | (59) | |
Net increase (decrease) in Cash and cash equivalents | 115 | (30) | |
Cash and cash equivalents at beginning of the period | 970 | [1] | 1,089 |
Cash and cash equivalents at end of the period | 1,085 | 1,059 | |
Supplemental Cash Flow Information | |||
Income taxes paid | $ 507 | $ 640 | |
[1] | Prior year amounts have been reclassified to conform to the current year presentation of debt issuance costs required by Accounting Standards Update (“ASU”) No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” See Note 1 to the Condensed Consolidated Financial Statements for additional information. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair statement of the results for interim periods. Results of operations for interim periods may not be representative of results to be expected for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company adopted Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” on January 1, 2016. To conform to the current year’s presentation, debt issuance costs have been reclassified from Other assets and are now presented as a direct deduction to the carrying amount of the related debt balance at December 31, 2015. The reclassification had no further effect on the Company’s Consolidated Financial Statements. For a complete set of financial statement notes, including the significant accounting policies of Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”), refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the Securities and Exchange Commission. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Provisions for certain expenses, including income taxes, media advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On March 30, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On March 15, 2016, the FASB issued ASU No. 2016-07, “Investments–Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On February 25, 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which supersedes Topic 840, “Leases.” The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The new standard also provides additional guidance on the measurement of the right-of-use assets and lease liabilities and will require enhanced disclosures about the Company’s leasing arrangements. This new standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The standard requires a “modified retrospective” adoption, meaning the standard is applied to leases existing at, or entered into after the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, “Financial Instruments–Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated guidance enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The amendment to the standard is effective for the Company beginning on January 1, 2018. 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 November 20, 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. As permitted, the Company adopted the new standard on March 31, 2016, on a prospective basis, and did not retrospectively adjust prior periods. On July 22, 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On May 28, 2014, the FASB and the International Accounting Standards Board (“IASB”) issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” 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, 2018. On March 30, 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and licensing. On May 9, 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. 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 standard will have a material impact on its Consolidated Financial Statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 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 parties have subsequently amended the agreement to extend the closing date. Under the existing agreement, the final installment of the purchase price 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 July 29, 2016. While these conditions are not expected to be fully satisfied by July 29, 2016, in which case the Purchaser has several options under the agreement (including termination and the return to it of the first two installments of the purchase price), based on the discussions to date, the Company believes that an additional amendment will be negotiated and the transfer of the property is expected to occur in the third quarter of 2016. 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. During the six months ended June 30, 2016 and 2015 , the Company did not expense any costs related to the sale. |
Restructuring and Related Imple
Restructuring and Related Implementation Charges | 6 Months Ended |
Jun. 30, 2016 | |
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 Global Growth and Efficiency Program (as expanded in 2014 and 2015 as described below, the “2012 Restructuring 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 (the “Board”) approved an expansion of the 2012 Restructuring Program to take advantage of additional savings opportunities. Recognizing the macroeconomic challenges around the world and the successful implementation of the 2012 Restructuring Program, on October 29, 2015, the Board approved the reinvestment of the funds from the sale of the Company’s laundry detergent business in the South Pacific to expand the 2012 Restructuring Program and extend it for one year through December 31, 2017. The Board approved the implementation plan for this expansion on March 10, 2016. Initiatives under the 2012 Restructuring Program will continue to fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities. Cumulative pretax charges resulting from the 2012 Restructuring Program, once all phases are approved and implemented, are estimated to be $1,405 to $1,585 ( $1,050 to $1,170 aftertax). The pretax charges resulting from the 2012 Restructuring Program 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 related implementation charges resulting directly from exit activities ( 20% ) and the implementation of new strategies ( 20% ). Over the course of the 2012 Restructuring Program, it is currently estimated that approximately 75% of the charges will result in cash expenditures. Anticipated pretax charges for 2016 are expected to approximate $270 to $310 ( $200 to $230 aftertax). It is expected that substantially all charges resulting from the 2012 Restructuring Program will be incurred by December 31, 2017. 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 ( 20% ), Latin America ( 5% ), Asia Pacific ( 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, when it has been fully implemented, the 2012 Restructuring Program will contribute a net reduction of approximately 3,300 – 3,800 positions from the Company’s global employee workforce. For the three and six months ended June 30, 2016 and 2015 , restructuring and related implementation charges are reflected in the Condensed Consolidated Statements of Income as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of sales $ 12 $ 4 $ 20 $ 8 Selling, general and administrative expenses 14 11 40 29 Other (income) expense, net 33 37 54 115 Total 2012 Restructuring Program charges, pretax $ 59 $ 52 $ 114 $ 152 Total 2012 Restructuring Program charges, aftertax $ 44 $ 40 $ 82 $ 107 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: Three Months Ended Six Months Ended Program-to-date June 30, June 30, Accumulated Charges 2016 2015 2016 2015 North America 23 % 14 % 32 % 17 % 15 % Latin America 6 % 5 % 7 % 2 % 4 % Europe (1) 6 % 19 % 7 % 10 % 22 % Asia Pacific (1) 9 % 11 % 6 % 5 % 3 % Africa/Eurasia 22 % 4 % 15 % 3 % 6 % Hill ’ s Pet Nutrition 17 % 13 % 9 % 7 % 7 % Corporate 17 % 34 % 24 % 56 % 43 % (1) The Company has recast its historical geographic segment information to conform to the new reporting structure. See Note 13 , Segment Information for additional details. Since the inception of the 2012 Restructuring Program in the fourth quarter of 2012, the Company has incurred pretax cumulative charges of $1,114 ( $821 aftertax) in connection with the implementation of various projects as follows: Cumulative Charges as of June 30, 2016 Employee-Related Costs $ 438 Incremental Depreciation 74 Asset Impairments 10 Other 592 Total $ 1,114 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 extension of shared business services and streamlining of global functions; the simplification and streamlining of the Company’s research and development capabilities and oral care supply chain, both in Europe; the closing of the Morristown, New Jersey personal care facility; and restructuring how the Company will provide future retirement benefits to substantially all of the U.S.-based employees participating in the Company’s defined benefit retirement plan by shifting them to the Company’s defined contribution plan. The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals: Three Months Ended June 30, 2016 Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at March 31, 2016 $ 83 $ — $ — $ 135 $ 218 Charges 19 — 3 37 59 Cash payments (25 ) — — (31 ) (56 ) Charges against assets (1 ) — (3 ) — (4 ) Foreign exchange — — — — — Balance at June 30, 2016 $ 76 $ — $ — $ 141 $ 217 Six Months Ended June 30, 2016 Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at December 31, 2015 $ 84 $ — $ — $ 131 $ 215 Charges 34 3 3 74 114 Cash payments (41 ) — — (64 ) (105 ) Charges against assets (2 ) (3 ) (3 ) — (8 ) Foreign exchange 1 — — — 1 Balance at June 30, 2016 $ 76 $ — $ — $ 141 $ 217 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 $1 and $ 2 for the three and six months ended June 30, 2016 , 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 three and six months ended June 30, 2016 include third-party incremental costs related to the development and implementation of new business and strategic initiatives of $ 26 and $ 57 , respectively, and contract termination costs and charges resulting directly from exit activities of $ 11 and $16 , respectively, directly related to the 2012 Restructuring Program. These charges were expensed as incurred. Also included in Other charges for the three and six months ended June 30, 2016 are other exit costs related to the consolidation of facilities of $ 0 and $ 1 , respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories | Inventories Inventories by major class are as follows: June 30, December 31, Raw materials and supplies $ 257 $ 261 Work-in-process 45 45 Finished goods 930 874 Total Inventories $ 1,232 $ 1,180 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Changes in the components of Shareholders’ Equity for the six months ended June 30, 2016 are as follows: Colgate-Palmolive Company Shareholders’ Equity Noncontrolling Interests Common Stock Additional Paid-in Capital Unearned Compensation Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2015 $ 1,466 $ 1,438 $ (12 ) $ (18,102 ) $ 18,861 $ (3,950 ) $ 255 Net income 1,133 79 Other comprehensive income (loss), net of tax 107 (5 ) Dividends (1,039 ) (14 ) Stock-based compensation expense 48 Shares issued for stock options 76 160 Shares issued for restricted stock units (26 ) 26 Treasury stock acquired (482 ) Other 6 7 2 Balance, June 30, 2016 $ 1,466 $ 1,542 $ (5 ) $ (18,396 ) $ 18,955 $ (3,843 ) $ 315 Accumulated other comprehensive income (loss) includes cumulative translation losses of $ 2,999 and $ 3,087 at June 30, 2016 and December 31, 2015 , respectively, and unrecognized retirement plan and other retiree benefits costs of $ 845 and $ 868 at June 30, 2016 and December 31, 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Three Months Ended June 30, 2016 June 30, 2015 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 600 893.9 $ 0.67 $ 574 904.6 $ 0.63 Stock options and restricted stock units 7.2 7.8 Diluted EPS $ 600 901.1 $ 0.67 $ 574 912.4 $ 0.63 For the three months ended June 30, 2016 and 2015 , the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 598,857 and 1,571,872 , respectively. Six Months Ended June 30, 2016 June 30, 2015 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 1,133 893.8 $ 1.27 $ 1,116 906.1 $ 1.23 Stock options and restricted stock units 6.9 8.3 Diluted EPS $ 1,133 900.7 $ 1.26 $ 1,116 914.4 $ 1.22 For the six months ended June 30, 2016 and 2015 , the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 356,541 and 1,573,532 , respectively. Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters ’ earnings per share may not necessarily equal the earnings per share for any year-to-date period. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended June 30, 2016 and 2015 were as follows: 2016 2015 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ (8 ) $ (37 ) $ 64 $ 67 Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period — — — — Amortization of net actuarial loss, transition and prior service costs (1) 16 12 22 14 Retirement plans and other retiree benefits adjustments 16 12 22 14 Available-for-sale securities: Unrealized gains (losses) on available-for-sale securities — — (19 ) (12 ) Reclassification of (gains) losses into net earnings on available-for-sale securities — — 7 5 Gains (losses) on available-for-sale securities — — (12 ) (7 ) Cash flow hedges: Unrealized gains (losses) on cash flow hedges 7 6 (5 ) (3 ) Reclassification of (gains) losses into net earnings on cash flow hedges (2) 2 1 (1 ) — Gains (losses) on cash flow hedges 9 7 (6 ) (3 ) Total Other comprehensive income (loss) $ 17 $ (18 ) $ 68 $ 71 (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) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the six months ended June 30, 2016 and 2015 were as follows: 2016 2015 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ 86 $ 88 $ (276 ) $ (285 ) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period — — (1 ) (1 ) Amortization of net actuarial loss, transition and prior service costs (1) 32 23 44 28 Retirement plans and other retiree benefits adjustments 32 23 43 27 Available-for-sale securities: Unrealized gains (losses) on available-for-sale securities — — (20 ) (13 ) Reclassification of (gains) losses into net earnings on available-for-sale securities — — 7 5 Gains (losses) on available-for-sale securities — — (13 ) (8 ) Cash flow hedges: Unrealized gains (losses) on cash flow hedges (7 ) (4 ) 1 1 Reclassification of (gains) losses into net earnings on cash flow hedges (2) — — (7 ) (4 ) Gains (losses) on cash flow hedges (7 ) (4 ) (6 ) (3 ) Total Other comprehensive income (loss) $ 111 $ 107 $ (252 ) $ (269 ) (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) These (gains) losses are reclassified into Cost of sales. See Note 14 , Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. |
Retirement Plans and Other Reti
Retirement Plans and Other Retiree Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans and Other Retiree Benefits | Retirement Plans and Other Retiree Benefits Components of Net periodic benefit cost for the three and six months ended June 30, 2016 and 2015 were as follows: Pension Benefits Other Retiree Benefits United States International Three Months Ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 4 $ 5 $ 3 $ 4 Interest cost 26 25 6 7 11 12 ESOP offset — — — — (1 ) (1 ) Expected return on plan assets (28 ) (29 ) (6 ) (6 ) — — Amortization of transition and prior service costs (credits) — — — 1 — — Amortization of actuarial loss (gain) 10 12 2 2 4 7 Net periodic benefit cost $ 9 $ 9 $ 6 $ 9 $ 17 $ 22 Pension Benefits Other Retiree Benefits United States International Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 8 $ 10 $ 6 $ 8 Interest cost 53 50 12 15 22 23 ESOP offset — — — — (1 ) (1 ) Expected return on plan assets (55 ) (58 ) (11 ) (14 ) — (1 ) Amortization of transition and prior service costs (credits) — — — 1 — — Amortization of actuarial loss (gain) 20 24 4 5 8 14 Net periodic benefit cost $ 19 $ 17 $ 13 $ 17 $ 35 $ 43 For the six months ended June 30, 2016 , the Company made voluntary contributions of $ 50 to its U.S. postretirement plans. For the six months ended June 30, 2015 , the Company did not make any voluntary contributions to its U.S. postretirement plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Since 2002, the Company has taken a tax position in a foreign jurisdiction that has been challenged by the tax authorities. In May 2015, the Company became aware of several Supreme Court rulings in the foreign jurisdiction disallowing certain tax deductions which had the effect of reversing prior decisions. The Company had taken deductions in prior years similar to those disallowed by the Court. As a result, as required, the Company reassessed its tax position and increased its unrecognized tax benefits by $15 in the quarter ended June 30, 2015. During the quarter ended June 30, 2016, the Supreme Court in the foreign jurisdiction decided the matter in the Company’s favor for the years 2002 through 2005 and, as a result, the Company recorded a net tax benefit of $ 13 including interest. The tax benefit of deductions related to this tax position taken for the years 2006 through 2014 total approximately $ 32 at current exchange rates. These deductions are currently being challenged by the tax authorities either in the lower courts or at the administrative level and, if resolved in the Company’s favor, will result in the Company recording additional tax benefits, including interest. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, 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 $250 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more matters could be material to the Company’s results of operations or cash flows for any particular quarter or year. Brazilian Matters There are certain tax and civil proceedings outstanding, as described below, related to the Company ’ s 1995 acquisition of the Kolynos oral care business from Wyeth (the “ Seller ” ). The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, at the current exchange rate, are approximately $141 . This amount includes additional assessments received from the Brazilian internal revenue authority in April 2016 relating to net operating loss carryforwards used by the Company’s Brazilian subsidiary to offset taxable income that had also been deducted from the authority's original assessments. The Company has been disputing the disallowances by appealing the assessments since October 2001. Numerous appeals are currently pending at the administrative level. In the event the Company is ultimately unsuccessful in its administrative appeals, further appeals are available within the Brazilian federal courts. In September 2015, the Company lost one of its appeals at the administrative level, and has filed a lawsuit in Brazilian federal court. In the event the Company is unsuccessful in this filing, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the disallowances are without merit and that the Company should ultimately prevail. The Company is challenging these assessments vigorously. In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the Company should ultimately prevail in this action. The Company is challenging this action vigorously. In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest and penalties of approximately $59 , at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company had been disputing the assessment within the internal revenue authority’s administrative appeals process. However, in November 2015, the Superior Chamber of Administrative Tax Appeals denied the Company’s final administrative appeal and the Company has filed a lawsuit in Brazilian federal court. In the event the Company is unsuccessful in this filing, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the tax assessment is without merit and that the Company should ultimately prevail. The Company is challenging this assessment vigorously. Competition Matters The Company is subject to competition law investigations and legal proceedings in a number of countries. 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 and associated private actions for damages. 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. European Competition Matters Certain of the Company’s subsidiaries in Europe have been 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 matter, although, as noted below, the Company has appealed each of these fines: ▪ 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 “Sale and Purchase Agreement”), the French competition law authority found that the Company’s French subsidiary, along with Hillshire Brands Company (formerly Sara Lee Corporation (“Sara Lee”)), were jointly and severally liable for fines of $25 assessed against Sara Lee’s French subsidiary. The Company is entitled to indemnification for this fine from Unilever as provided in the Sale and Purchase Agreement. The Company is appealing both fines in the French courts. Currently, the following formal claim of violations is pending against the Company: ▪ In July 2014, the Greek competition law authority issued a statement of objections alleging a restriction of parallel imports into Greece. The Company has responded to this statement of objections. Since December 31, 2015, the following matters have been resolved: ▪ 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 had appealed before the Swiss Supreme Court, but its appeal was denied in June 2016. ▪ 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 had appealed the fine in the Italian courts, but has decided not to further pursue its appeal. 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. In 2015, the Company recognized a charge of $14 in connection with this matter. In March 2016, the Company and the Australian competition law authority reached an agreement to settle these proceedings for a total of $14 , which includes a fine and cost reimbursement to the competition law authority. The former employee of the Company also reached an agreement to settle. The settlement agreements were approved by the court in May 2016. Talcum Powder Matters The Company is a defendant in a number of civil actions alleging that certain talcum powder products it sold prior to 1996 were contaminated with asbestos. As of June 30, 2016, there were 79 individual cases pending against the Company in state and federal courts throughout the United States, 29 of which were filed against the Company during the quarter ended June 30, 2016. On June 24, 2016, a jury rendered a verdict in the Company’s favor in one of the pending cases following a trial in California. In addition to the pending cases, as of June 30, 2016, 28 cases filed against the Company had been voluntarily dismissed and/or had final judgment entered in favor of the Company, and the Company had settled 16 cases for amounts that are not material to the Company’s results of operations. A number of the 79 pending cases are expected to go to trial in 2016. While the Company and its legal counsel believe that these cases are without merit and intend to challenge them vigorously, there can be no assurances of the outcome at trial. 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. N8 The Company is a defendant in a lawsuit pending in Utah federal court brought by N8 Medical, Inc. (“N8 Medical”), Brigham Young University (“BYU”) and N8 Pharmaceuticals, Inc. (“N8 Pharma”) (collectively “plaintiffs”). The complaint, originally filed in November 2013, alleges breach of contract and other torts arising out of the Company’s evaluation of a technology owned by BYU and licensed, at various times, to Ceragenix Pharmaceuticals, Inc., now in bankruptcy, N8 Medical and N8 Pharma. In the third quarter of 2015, plaintiffs completed a submission of documents in the litigation alleging damages of approximately $2,500 . The Company and its legal counsel believe these damages allegations are without merit and are vigorously challenging them and defending this case on its merits. This case is expected to go to trial in 2017. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Effective April 1, 2016, the operations of the Oral, Personal and Home Care product segment are now managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. Through March 31, 2016, the Oral, Personal and Home Care product segment included the North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia geographic operating segments. As a result of management changes effective April 1, 2016, the Company realigned the geographic structure of its Europe/South Pacific and Asia reportable operating segments. Management responsibility for the South Pacific operations was transferred from Europe/South Pacific management to Asia management. Accordingly, commencing with the Company’s financial reporting for the quarter ended June 30, 2016, the results of the South Pacific operations are reported in the Asia Pacific reportable operating segment. The Company has recast its historical geographic segment information to conform to the new reporting structure. These changes have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of corporate-driven decisions related to interest expense and income taxes. The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation 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. Net sales and Operating profit by segment were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales Oral, Personal and Home Care North America $ 793 $ 780 $ 1,593 $ 1,569 Latin America 938 1,126 1,786 2,213 Europe 606 602 1,194 1,212 Asia Pacific 697 752 1,440 1,544 Africa/Eurasia 239 254 470 508 Total Oral, Personal and Home Care 3,273 3,514 6,483 7,046 Pet Nutrition 572 552 1,124 1,090 Total Net sales $ 3,845 $ 4,066 $ 7,607 $ 8,136 Operating profit Oral, Personal and Home Care North America $ 250 $ 223 $ 489 $ 441 Latin America 284 321 531 629 Europe 138 147 279 294 Asia Pacific 219 217 438 447 Africa/Eurasia 45 45 88 84 Total Oral, Personal and Home Care 936 953 1,825 1,895 Pet Nutrition 162 146 317 293 Corporate (154 ) (167 ) (331 ) (396 ) Total Operating profit $ 944 $ 932 $ 1,811 $ 1,792 Approximately 75% of the Company’s Net sales are generated from markets outside the U.S., with approximately 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). For the three months ended June 30, 2016 , Corporate Operating profit (loss) includes charges of $59 resulting from the 2012 Restructuring Program. For the six months ended June 30, 2016 , Corporate Operating profit (loss) includes charges of $114 resulting from the 2012 Restructuring Program. For the three months ended June 30, 2015 , Corporate Operating profit (loss) included charges of $52 resulting from the 2012 Restructuring Program and a charge of $16 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation. For the six months ended June 30, 2015 , Corporate Operating profit (loss) included charges of $152 resulting from the 2012 Restructuring Program and a charge of $16 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation. For further information regarding the 2012 Restructuring Program, refer to Note 5 , Restructuring and Related Implementation Charges. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations. The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. Hedge ineffectiveness, if any, is not material for any period presented. The Company’s derivative instruments include interest rate swap contracts, foreign currency contracts and commodity contracts. The Company utilizes interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes foreign currency contracts, including forward and swap contracts, option contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 12 months. The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments at June 30, 2016 and December 31, 2015 : Assets Liabilities Account Fair Value Account Fair Value Designated derivative instruments 6/30/16 12/31/15 6/30/16 12/31/15 Interest rate swap contracts Other current assets $ 4 $ — Other accruals $ — $ — Interest rate swap contracts Other assets 12 7 Other liabilities — — Foreign currency contracts Other current assets 97 131 Other accruals 27 5 Foreign currency contracts Other assets 1 — Other liabilities — — Commodity contracts Other current assets 1 — Other accruals — — Total designated $ 115 $ 138 $ 27 $ 5 Derivatives not designated Foreign currency contracts Other assets $ — $ 13 Other liabilities $ — $ — Total not designated $ — $ 13 $ — $ — Total derivative instruments $ 115 $ 151 $ 27 $ 5 Other financial instruments Marketable securities Other current assets $ 163 $ 61 Total other financial instruments $ 163 $ 61 The carrying amount of cash, cash equivalents, accounts receivable and short-term debt approximated fair value as of June 30, 2016 and December 31, 2015 . The estimated fair value of the Company’s long-term debt, including the current portion, as of June 30, 2016 and December 31, 2015 , was $7,041 and $6,767 , respectively, and the related carrying value was $6,569 and $6,544 , 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 the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Interest Rate Swaps Total Foreign Currency Contracts Interest Rate Swaps Total Notional Value at June 30, $ 347 $ 1,250 $ 1,597 $ 1,136 $ 1,438 $ 2,574 Three months ended June 30, Gain (loss) on derivatives (6 ) 1 (5 ) (5 ) (4 ) (9 ) Gain (loss) on hedged items 6 (1 ) 5 5 4 9 Six months ended June 30, Gain (loss) on derivatives (5 ) 9 4 (3 ) 2 (1 ) Gain (loss) on hedged items 5 (9 ) (4 ) 3 (2 ) 1 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 the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Commodity Contracts Total Foreign Currency Contracts Commodity Contracts Total Notional Value at June 30, $ 705 $ 9 $ 714 $ 666 $ 10 $ 676 Three months ended June 30, Gain (loss) recognized in OCI 5 2 7 (6 ) 1 (5 ) Gain (loss) reclassified into Cost of sales (3 ) 1 (2 ) 1 — 1 Six months ended June 30, Gain (loss) recognized in OCI (9 ) 2 (7 ) 1 — 1 Gain (loss) reclassified into Cost of sales — — — 8 (1 ) 7 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 Cumulative translation adjustments within OCI, along with the offsetting gain or loss on the hedged items. Activity related to net investment hedges recorded during the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Foreign Currency Debt Total Foreign Currency Contracts Foreign Currency Debt Total Notional Value at June 30, $ 895 $ 1,280 $ 2,175 $ 786 $ 836 $ 1,622 Three months ended June 30, Gain (loss) on instruments 10 26 36 (29 ) (2 ) (31 ) Gain (loss) on hedged items (7 ) (26 ) (33 ) 29 2 31 Six months ended June 30, Gain (loss) on instruments (16 ) (23 ) (39 ) 33 25 58 Gain (loss) on hedged items 16 23 39 (33 ) (25 ) (58 ) 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 the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Foreign Currency Contracts Notional Value at June 30, $ 5 $ 181 Three months ended June 30, Gain (loss) on instruments 2 (5 ) Gain (loss) on hedged items (2 ) 6 Six months ended June 30, Gain (loss) on instruments 5 — Gain (loss) on hedged items (5 ) 1 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 consisting of bank deposits of $163 with original maturities greater than 90 days (Level 1 valuation) and the current portion of bonds issued by the Argentinian government (Level 2 valuation) in the amount of $50 . The long-term portion of these bonds in the amount of $11 is included in Other assets. Through its subsidiary in Argentina, the Company has invested in U.S. dollar-linked, devaluation-protected bonds issued by the Argentinian government. These bonds are considered held-to-maturity and are carried at amortized cost. As of June 30, 2016 , the amortized cost of these bonds was $61 and their approximate fair value was $90 . |
Use of Estimates (Policies)
Use of Estimates (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Provisions for certain expenses, including income taxes, media advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On March 30, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On March 15, 2016, the FASB issued ASU No. 2016-07, “Investments–Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On February 25, 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which supersedes Topic 840, “Leases.” The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The new standard also provides additional guidance on the measurement of the right-of-use assets and lease liabilities and will require enhanced disclosures about the Company’s leasing arrangements. This new standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The standard requires a “modified retrospective” adoption, meaning the standard is applied to leases existing at, or entered into after the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, “Financial Instruments–Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated guidance enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The amendment to the standard is effective for the Company beginning on January 1, 2018. 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 November 20, 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. As permitted, the Company adopted the new standard on March 31, 2016, on a prospective basis, and did not retrospectively adjust prior periods. On July 22, 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On May 28, 2014, the FASB and the International Accounting Standards Board (“IASB”) issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” 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, 2018. On March 30, 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and licensing. On May 9, 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. 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 standard will have a material impact on its Consolidated Financial Statements. |
Restructuring and Related Imp22
Restructuring and Related Implementation Charges (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | For the three and six months ended June 30, 2016 and 2015 , restructuring and related implementation charges are reflected in the Condensed Consolidated Statements of Income as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of sales $ 12 $ 4 $ 20 $ 8 Selling, general and administrative expenses 14 11 40 29 Other (income) expense, net 33 37 54 115 Total 2012 Restructuring Program charges, pretax $ 59 $ 52 $ 114 $ 152 Total 2012 Restructuring Program charges, aftertax $ 44 $ 40 $ 82 $ 107 |
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: Three Months Ended Six Months Ended Program-to-date June 30, June 30, Accumulated Charges 2016 2015 2016 2015 North America 23 % 14 % 32 % 17 % 15 % Latin America 6 % 5 % 7 % 2 % 4 % Europe (1) 6 % 19 % 7 % 10 % 22 % Asia Pacific (1) 9 % 11 % 6 % 5 % 3 % Africa/Eurasia 22 % 4 % 15 % 3 % 6 % Hill ’ s Pet Nutrition 17 % 13 % 9 % 7 % 7 % Corporate 17 % 34 % 24 % 56 % 43 % (1) The Company has recast its historical geographic segment information to conform to the new reporting structure. See Note 13 , Segment Information for additional details. |
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 $1,114 ( $821 aftertax) in connection with the implementation of various projects as follows: Cumulative Charges as of June 30, 2016 Employee-Related Costs $ 438 Incremental Depreciation 74 Asset Impairments 10 Other 592 Total $ 1,114 |
Schedule of Restructuring Reserve by Type of Cost | The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals: Three Months Ended June 30, 2016 Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at March 31, 2016 $ 83 $ — $ — $ 135 $ 218 Charges 19 — 3 37 59 Cash payments (25 ) — — (31 ) (56 ) Charges against assets (1 ) — (3 ) — (4 ) Foreign exchange — — — — — Balance at June 30, 2016 $ 76 $ — $ — $ 141 $ 217 Six Months Ended June 30, 2016 Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at December 31, 2015 $ 84 $ — $ — $ 131 $ 215 Charges 34 3 3 74 114 Cash payments (41 ) — — (64 ) (105 ) Charges against assets (2 ) (3 ) (3 ) — (8 ) Foreign exchange 1 — — — 1 Balance at June 30, 2016 $ 76 $ — $ — $ 141 $ 217 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories By Major Class | Inventories by major class are as follows: June 30, December 31, Raw materials and supplies $ 257 $ 261 Work-in-process 45 45 Finished goods 930 874 Total Inventories $ 1,232 $ 1,180 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Changes in the components of Shareholders’ Equity for the six months ended June 30, 2016 are as follows: Colgate-Palmolive Company Shareholders’ Equity Noncontrolling Interests Common Stock Additional Paid-in Capital Unearned Compensation Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2015 $ 1,466 $ 1,438 $ (12 ) $ (18,102 ) $ 18,861 $ (3,950 ) $ 255 Net income 1,133 79 Other comprehensive income (loss), net of tax 107 (5 ) Dividends (1,039 ) (14 ) Stock-based compensation expense 48 Shares issued for stock options 76 160 Shares issued for restricted stock units (26 ) 26 Treasury stock acquired (482 ) Other 6 7 2 Balance, June 30, 2016 $ 1,466 $ 1,542 $ (5 ) $ (18,396 ) $ 18,955 $ (3,843 ) $ 315 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, 2016 June 30, 2015 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 600 893.9 $ 0.67 $ 574 904.6 $ 0.63 Stock options and restricted stock units 7.2 7.8 Diluted EPS $ 600 901.1 $ 0.67 $ 574 912.4 $ 0.63 For the three months ended June 30, 2016 and 2015 , the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 598,857 and 1,571,872 , respectively. Six Months Ended June 30, 2016 June 30, 2015 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 1,133 893.8 $ 1.27 $ 1,116 906.1 $ 1.23 Stock options and restricted stock units 6.9 8.3 Diluted EPS $ 1,133 900.7 $ 1.26 $ 1,116 914.4 $ 1.22 |
Other Comprehensive Income (L26
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended June 30, 2016 and 2015 were as follows: 2016 2015 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ (8 ) $ (37 ) $ 64 $ 67 Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period — — — — Amortization of net actuarial loss, transition and prior service costs (1) 16 12 22 14 Retirement plans and other retiree benefits adjustments 16 12 22 14 Available-for-sale securities: Unrealized gains (losses) on available-for-sale securities — — (19 ) (12 ) Reclassification of (gains) losses into net earnings on available-for-sale securities — — 7 5 Gains (losses) on available-for-sale securities — — (12 ) (7 ) Cash flow hedges: Unrealized gains (losses) on cash flow hedges 7 6 (5 ) (3 ) Reclassification of (gains) losses into net earnings on cash flow hedges (2) 2 1 (1 ) — Gains (losses) on cash flow hedges 9 7 (6 ) (3 ) Total Other comprehensive income (loss) $ 17 $ (18 ) $ 68 $ 71 (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) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the six months ended June 30, 2016 and 2015 were as follows: 2016 2015 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ 86 $ 88 $ (276 ) $ (285 ) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period — — (1 ) (1 ) Amortization of net actuarial loss, transition and prior service costs (1) 32 23 44 28 Retirement plans and other retiree benefits adjustments 32 23 43 27 Available-for-sale securities: Unrealized gains (losses) on available-for-sale securities — — (20 ) (13 ) Reclassification of (gains) losses into net earnings on available-for-sale securities — — 7 5 Gains (losses) on available-for-sale securities — — (13 ) (8 ) Cash flow hedges: Unrealized gains (losses) on cash flow hedges (7 ) (4 ) 1 1 Reclassification of (gains) losses into net earnings on cash flow hedges (2) — — (7 ) (4 ) Gains (losses) on cash flow hedges (7 ) (4 ) (6 ) (3 ) Total Other comprehensive income (loss) $ 111 $ 107 $ (252 ) $ (269 ) (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) These (gains) losses are reclassified into Cost of sales. See Note 14 , Fair Value Measurements and Financial Instruments for additional details. |
Retirement Plans and Other Re27
Retirement Plans and Other Retiree Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components Of Net Periodic Benefit Cost | Components of Net periodic benefit cost for the three and six months ended June 30, 2016 and 2015 were as follows: Pension Benefits Other Retiree Benefits United States International Three Months Ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 4 $ 5 $ 3 $ 4 Interest cost 26 25 6 7 11 12 ESOP offset — — — — (1 ) (1 ) Expected return on plan assets (28 ) (29 ) (6 ) (6 ) — — Amortization of transition and prior service costs (credits) — — — 1 — — Amortization of actuarial loss (gain) 10 12 2 2 4 7 Net periodic benefit cost $ 9 $ 9 $ 6 $ 9 $ 17 $ 22 Pension Benefits Other Retiree Benefits United States International Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 Service cost $ 1 $ 1 $ 8 $ 10 $ 6 $ 8 Interest cost 53 50 12 15 22 23 ESOP offset — — — — (1 ) (1 ) Expected return on plan assets (55 ) (58 ) (11 ) (14 ) — (1 ) Amortization of transition and prior service costs (credits) — — — 1 — — Amortization of actuarial loss (gain) 20 24 4 5 8 14 Net periodic benefit cost $ 19 $ 17 $ 13 $ 17 $ 35 $ 43 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Profit by Segment | Net sales and Operating profit by segment were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Net sales Oral, Personal and Home Care North America $ 793 $ 780 $ 1,593 $ 1,569 Latin America 938 1,126 1,786 2,213 Europe 606 602 1,194 1,212 Asia Pacific 697 752 1,440 1,544 Africa/Eurasia 239 254 470 508 Total Oral, Personal and Home Care 3,273 3,514 6,483 7,046 Pet Nutrition 572 552 1,124 1,090 Total Net sales $ 3,845 $ 4,066 $ 7,607 $ 8,136 Operating profit Oral, Personal and Home Care North America $ 250 $ 223 $ 489 $ 441 Latin America 284 321 531 629 Europe 138 147 279 294 Asia Pacific 219 217 438 447 Africa/Eurasia 45 45 88 84 Total Oral, Personal and Home Care 936 953 1,825 1,895 Pet Nutrition 162 146 317 293 Corporate (154 ) (167 ) (331 ) (396 ) Total Operating profit $ 944 $ 932 $ 1,811 $ 1,792 |
Fair Value Measurements and F29
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Schedule of derivative instruments | The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments at June 30, 2016 and December 31, 2015 : Assets Liabilities Account Fair Value Account Fair Value Designated derivative instruments 6/30/16 12/31/15 6/30/16 12/31/15 Interest rate swap contracts Other current assets $ 4 $ — Other accruals $ — $ — Interest rate swap contracts Other assets 12 7 Other liabilities — — Foreign currency contracts Other current assets 97 131 Other accruals 27 5 Foreign currency contracts Other assets 1 — Other liabilities — — Commodity contracts Other current assets 1 — Other accruals — — Total designated $ 115 $ 138 $ 27 $ 5 Derivatives not designated Foreign currency contracts Other assets $ — $ 13 Other liabilities $ — $ — Total not designated $ — $ 13 $ — $ — Total derivative instruments $ 115 $ 151 $ 27 $ 5 Other financial instruments Marketable securities Other current assets $ 163 $ 61 Total other financial instruments $ 163 $ 61 |
Activity related to fair value hedges | Activity related to fair value hedges recorded during the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Interest Rate Swaps Total Foreign Currency Contracts Interest Rate Swaps Total Notional Value at June 30, $ 347 $ 1,250 $ 1,597 $ 1,136 $ 1,438 $ 2,574 Three months ended June 30, Gain (loss) on derivatives (6 ) 1 (5 ) (5 ) (4 ) (9 ) Gain (loss) on hedged items 6 (1 ) 5 5 4 9 Six months ended June 30, Gain (loss) on derivatives (5 ) 9 4 (3 ) 2 (1 ) Gain (loss) on hedged items 5 (9 ) (4 ) 3 (2 ) 1 |
Activity related to cash flow hedges | Activity related to cash flow hedges recorded during the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Commodity Contracts Total Foreign Currency Contracts Commodity Contracts Total Notional Value at June 30, $ 705 $ 9 $ 714 $ 666 $ 10 $ 676 Three months ended June 30, Gain (loss) recognized in OCI 5 2 7 (6 ) 1 (5 ) Gain (loss) reclassified into Cost of sales (3 ) 1 (2 ) 1 — 1 Six months ended June 30, Gain (loss) recognized in OCI (9 ) 2 (7 ) 1 — 1 Gain (loss) reclassified into Cost of sales — — — 8 (1 ) 7 |
Activity related to net investment hedges | Activity related to net investment hedges recorded during the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Foreign Currency Debt Total Foreign Currency Contracts Foreign Currency Debt Total Notional Value at June 30, $ 895 $ 1,280 $ 2,175 $ 786 $ 836 $ 1,622 Three months ended June 30, Gain (loss) on instruments 10 26 36 (29 ) (2 ) (31 ) Gain (loss) on hedged items (7 ) (26 ) (33 ) 29 2 31 Six months ended June 30, Gain (loss) on instruments (16 ) (23 ) (39 ) 33 25 58 Gain (loss) on hedged items 16 23 39 (33 ) (25 ) (58 ) |
Activity related to derivatives not designated as hedging instruments | Activity related to these contracts during the three and six months ended June 30, 2016 and 2015 was as follows: 2016 2015 Foreign Currency Contracts Foreign Currency Contracts Notional Value at June 30, $ 5 $ 181 Three months ended June 30, Gain (loss) on instruments 2 (5 ) Gain (loss) on hedged items (2 ) 6 Six months ended June 30, Gain (loss) on instruments 5 — Gain (loss) on hedged items (5 ) 1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Divestitures (Details 1) - MEXICO $ in Millions | 3 Months Ended | |||
Sep. 30, 2012USD ($) | Sep. 30, 2011USD ($) | Jun. 30, 2016payment | Sep. 13, 2011payment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, number of installment payments (in payments) | payment | 3 | |||
First Installment received from the sale of land in Mexico | $ | $ 24 | |||
Second Installment received from the sale of land in Mexico | $ | $ 36 | |||
Disposal group, number of installment payments received to date (in payments) | payment | 2 |
Restructuring and Related Imp31
Restructuring and Related Implementation Charges (Details) - 2012 Restructuring Program $ in Millions | Oct. 29, 2015 | Jun. 30, 2016USD ($)position |
Restructuring Cost and Reserve [Line Items] | ||
Duration of extension of the restructuring program | 1 year | |
Expected percent of total charges resulting in cash expenditure | 75.00% | |
Hill’s Pet Nutrition | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 10.00% | |
Corporate | ||
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 | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 15.00% | |
Europe | ||
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 | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | |
Asia Pacific | ||
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 | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | |
Employee-Related Costs | ||
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 | ||
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 | ||
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 | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 20.00% | |
Minimum | Expected Completion Date 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | $ 270 | |
Restructuring program expected cost after tax | 200 | |
Minimum | Expected Completion Date 2017 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | 1,405 | |
Restructuring program expected cost after tax | $ 1,050 | |
Restructuring and related cost, expected number of positions eliminated (in positions) | position | 3,300 | |
Maximum | Expected Completion Date 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | $ 310 | |
Restructuring program expected cost after tax | 230 | |
Maximum | Expected Completion Date 2017 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | 1,585 | |
Restructuring program expected cost after tax | $ 1,170 | |
Restructuring and related cost, expected number of positions eliminated (in positions) | position | 3,800 |
Restructuring and Related Imp32
Restructuring and Related Implementation Charges (Details 1) - 2012 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | $ 59 | $ 52 | $ 114 | $ 152 |
Total 2012 Restructuring Program charges, aftertax | 44 | 40 | 82 | 107 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | 12 | 4 | 20 | 8 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | 14 | 11 | 40 | 29 |
Other (income) expense, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | $ 33 | $ 37 | $ 54 | $ 115 |
Restructuring and Related Imp33
Restructuring and Related Implementation Charges (Details 2) - 2012 Restructuring Program | 3 Months Ended | 6 Months Ended | 45 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | |
Hill’s Pet Nutrition | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 17.00% | 13.00% | 9.00% | 7.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 7.00% | ||||
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 17.00% | 34.00% | 24.00% | 56.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 43.00% | ||||
North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 23.00% | 14.00% | 32.00% | 17.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 15.00% | ||||
Latin America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 6.00% | 5.00% | 7.00% | 2.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 4.00% | ||||
Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 6.00% | 19.00% | 7.00% | 10.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 22.00% | ||||
Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 9.00% | 11.00% | 6.00% | 5.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 3.00% | ||||
Africa/Eurasia | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 22.00% | 4.00% | 15.00% | 3.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 6.00% |
Restructuring and Related Imp34
Restructuring and Related Implementation Charges (Details 3) - 2012 Restructuring Program $ in Millions | Jun. 30, 2016USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 1,114 |
Aftertax charges related to the Restructuring Program to date | 821 |
Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 438 |
Incremental Depreciation | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 74 |
Asset Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 10 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 592 |
Restructuring and Related Imp35
Restructuring and Related Implementation Charges (Details 4) - 2012 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 218 | $ 215 | ||
Charges | 59 | $ 52 | 114 | $ 152 |
Cash payments | (56) | (105) | ||
Charges against assets | (4) | (8) | ||
Foreign exchange | 0 | 1 | ||
Ending Balance | 217 | 217 | ||
Employee-Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 83 | 84 | ||
Charges | 19 | 34 | ||
Cash payments | (25) | (41) | ||
Charges against assets | (1) | (2) | ||
Foreign exchange | 0 | 1 | ||
Ending Balance | 76 | 76 | ||
Incremental Depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charges | 0 | 3 | ||
Cash payments | 0 | 0 | ||
Charges against assets | 0 | (3) | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 0 | 0 | ||
Asset Impairments | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charges | 3 | 3 | ||
Cash payments | 0 | 0 | ||
Charges against assets | (3) | (3) | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 0 | 0 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 135 | 131 | ||
Charges | 37 | 74 | ||
Cash payments | (31) | (64) | ||
Charges against assets | 0 | 0 | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 141 | 141 | ||
Third party Incremental Cost | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 26 | 57 | ||
Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 11 | 16 | ||
Land and Building | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 0 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||
Raw materials and supplies | $ 257 | $ 261 | |
Work-in-process | 45 | 45 | |
Finished goods | 930 | 874 | |
Total Inventories | $ 1,232 | $ 1,180 | [1] |
[1] | Prior year amounts have been reclassified to conform to the current year presentation of debt issuance costs required by Accounting Standards Update (“ASU”) No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” See Note 1 to the Condensed Consolidated Financial Statements for additional information. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | [1] | $ (44) | ||||
Net income | $ 638 | $ 616 | 1,212 | $ 1,199 | ||
Other comprehensive income (loss), net of tax | (24) | 70 | 102 | (269) | ||
Ending balance | 34 | 34 | ||||
Accumulated other comprehensive income (loss), cumulative translation losses | 2,999 | 2,999 | $ 3,087 | |||
Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefits costs | 845 | 845 | $ 868 | |||
Common Stock | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | 1,466 | |||||
Ending balance | 1,466 | 1,466 | ||||
Additional Paid-in Capital | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | 1,438 | |||||
Stock-based compensation expense | 48 | |||||
Shares issued for stock options | 76 | |||||
Shares issued for restricted stock units | (26) | |||||
Other | 6 | |||||
Ending balance | 1,542 | 1,542 | ||||
Unearned Compensation | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | (12) | |||||
Other | 7 | |||||
Ending balance | (5) | (5) | ||||
Treasury Stock | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | (18,102) | |||||
Shares issued for stock options | 160 | |||||
Shares issued for restricted stock units | 26 | |||||
Treasury stock acquired | (482) | |||||
Other | 2 | |||||
Ending balance | (18,396) | (18,396) | ||||
Retained Earnings | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | 18,861 | |||||
Net income | 1,133 | |||||
Dividends | (1,039) | |||||
Ending balance | 18,955 | 18,955 | ||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | (3,950) | |||||
Other comprehensive income (loss), net of tax | (18) | $ 71 | 107 | $ (269) | ||
Ending balance | (3,843) | (3,843) | ||||
Noncontrolling Interests | ||||||
Changes in Shareholders' Equity [Roll Forward] | ||||||
Beginning balance | 255 | |||||
Net income | 79 | |||||
Other comprehensive income (loss), net of tax | (5) | |||||
Dividends | (14) | |||||
Ending balance | $ 315 | $ 315 | ||||
[1] | Prior year amounts have been reclassified to conform to the current year presentation of debt issuance costs required by Accounting Standards Update (“ASU”) No. 2015-03 “Simplifying the Presentation of Debt Issuance Costs.” See Note 1 to the Condensed Consolidated Financial Statements for additional information. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income attributable to Colgate-Palmolive Company | ||||
Basic EPS | $ 600 | $ 574 | $ 1,133 | $ 1,116 |
Diluted EPS | $ 600 | $ 574 | $ 1,133 | $ 1,116 |
Shares | ||||
Basic EPS (in shares) | 893,900,000 | 904,600,000 | 893,800,000 | 906,100,000 |
Stock options and restricted stock units (in shares) | 7,200,000 | 7,800,000 | 6,900,000 | 8,300,000 |
Diluted EPS (in shares) | 901,100,000 | 912,400,000 | 900,700,000 | 914,400,000 |
Per Share | ||||
Basic EPS (in dollars per share) | $ 0.67 | $ 0.63 | $ 1.27 | $ 1.23 |
Diluted EPS (in dollars per share) | $ 0.67 | $ 0.63 | $ 1.26 | $ 1.22 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 598,857 | 1,571,872 | 356,541 | 1,573,532 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Other comprehensive income (loss), net of tax | $ (24) | $ 70 | $ 102 | $ (269) |
Cumulative translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), Pretax | (8) | 64 | 86 | (276) |
Total Other comprehensive income (loss), net of tax | (37) | 67 | 88 | (285) |
Retirement plans and other retiree benefits adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 0 | 0 | 0 | (1) |
Reclassification from AOCI, Pretax | 16 | 22 | 32 | 44 |
Other comprehensive income (loss), Pretax | 16 | 22 | 32 | 43 |
Other comprehensive income (loss), before reclassifications, Net of Tax | 0 | 0 | 0 | (1) |
Reclassification from AOCI, Net of Tax | 12 | 14 | 23 | 28 |
Total Other comprehensive income (loss), net of tax | 12 | 14 | 23 | 27 |
Available-for-sale securities: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 0 | (19) | 0 | (20) |
Reclassification from AOCI, Pretax | 0 | 7 | 0 | 7 |
Other comprehensive income (loss), Pretax | 0 | (12) | 0 | (13) |
Other comprehensive income (loss), before reclassifications, Net of Tax | 0 | (12) | 0 | (13) |
Reclassification from AOCI, Net of Tax | 0 | 5 | 0 | 5 |
Total Other comprehensive income (loss), net of tax | 0 | (7) | 0 | (8) |
Cash flow hedges: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 7 | (5) | (7) | 1 |
Reclassification from AOCI, Pretax | 2 | (1) | 0 | (7) |
Other comprehensive income (loss), Pretax | 9 | (6) | (7) | (6) |
Other comprehensive income (loss), before reclassifications, Net of Tax | 6 | (3) | (4) | 1 |
Reclassification from AOCI, Net of Tax | 1 | 0 | 0 | (4) |
Total Other comprehensive income (loss), net of tax | 7 | (3) | (4) | (3) |
Total Other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), Pretax | 17 | 68 | 111 | (252) |
Total Other comprehensive income (loss), net of tax | $ (18) | $ 71 | $ 107 | $ (269) |
Retirement Plans and Other Re40
Retirement Plans and Other Retiree Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits, United States | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 1 |
Interest cost | 26 | 25 | 53 | 50 |
ESOP offset | 0 | 0 | 0 | 0 |
Expected return on plan assets | (28) | (29) | (55) | (58) |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | 10 | 12 | 20 | 24 |
Net periodic benefit cost | 9 | 9 | 19 | 17 |
Voluntary benefit plan contribution | 50 | 0 | ||
Pension Benefits, International | ||||
Components of net periodic benefit cost | ||||
Service cost | 4 | 5 | 8 | 10 |
Interest cost | 6 | 7 | 12 | 15 |
ESOP offset | 0 | 0 | 0 | 0 |
Expected return on plan assets | (6) | (6) | (11) | (14) |
Amortization of transition and prior service costs (credits) | 0 | 1 | 0 | 1 |
Amortization of actuarial loss (gain) | 2 | 2 | 4 | 5 |
Net periodic benefit cost | 6 | 9 | 13 | 17 |
Other Retiree Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | 3 | 4 | 6 | 8 |
Interest cost | 11 | 12 | 22 | 23 |
ESOP offset | (1) | (1) | (1) | (1) |
Expected return on plan assets | 0 | 0 | 0 | (1) |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | 4 | 7 | 8 | 14 |
Net periodic benefit cost | $ 17 | $ 22 | $ 35 | $ 43 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Increase in unrecognized tax benefits | $ 15 | |
Tax benefit from foreign Supreme Court decision | $ 13 | |
Tax benefit from prior year tax positions | $ 32 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Jun. 24, 2016case | Mar. 31, 2016USD ($) | Sep. 30, 2015appeal | Jun. 30, 2016USD ($)case | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($)casecountry_and_territory | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Loss Contingency [Abstract] | ||||||||||
Minimum number of countries and territories serving consumers (more than) (in countries and territories) | country_and_territory | 200 | |||||||||
Range of reasonably possible losses, minimum | $ 0 | $ 0 | ||||||||
Range of reasonably possible losses, maximum | 250 | 250 | ||||||||
Brazilian internal revenue authority, matter 1 | 141 | 141 | ||||||||
Loss contingency, number of appeals lost (in appeals) | appeal | 1 | |||||||||
Brazilian internal revenue authority, matter 2 | $ 59 | $ 59 | ||||||||
Fine imposed french competition authority | $ 57 | |||||||||
Fine imposed french competition authority - as a result of Sanex acquisition | $ 25 | |||||||||
European competition matters - Swiss competition law authority | $ 6 | |||||||||
European competition matters - Italian competition law authority | $ 3 | |||||||||
Loss contingency accrual, period increase (decrease) | $ 14 | |||||||||
Litigation settlement, fine, amount | $ 14 | |||||||||
Loss contingency, pending claims, number (in cases) | case | 79 | 79 | ||||||||
Loss contingency, new claims filed, number (in cases) | case | 29 | |||||||||
Loss contingency, claims settled and dismissed, number (in cases) | case | 1 | |||||||||
Loss contingency, claims dismissed, number (in cases) | case | 28 | |||||||||
Loss contingency, claims settled, number (in cases) | case | 16 | |||||||||
Loss contingency, damages sought, approximate value | $ 2,500 |
Segment Information (Details)
Segment Information (Details) $ in Millions | Apr. 01, 2016segment | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) |
Segment Reporting [Abstract] | |||||
Number of product segments (in segments) | segment | 2 | ||||
Number of operating segments (in segments) | segment | 5 | ||||
Number of reportable segments (in segments) | segment | 5 | ||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | $ 3,845 | $ 4,066 | $ 7,607 | $ 8,136 | |
Total Operating profit | 944 | 932 | 1,811 | 1,792 | |
Pretax remeasurements charge | 0 | 16 | |||
Subsidiaries | |||||
Segment Reporting Information [Line Items] | |||||
Pretax remeasurements charge | 16 | 16 | |||
2012 Restructuring Program | |||||
Segment Reporting Information [Line Items] | |||||
Total 2012 Restructuring Program charges, pretax | $ 59 | 52 | $ 114 | 152 | |
Sales Revenue, Net | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of consolidated Net sales represented by sales outside US | 75.00% | 75.00% | |||
Percentage of consolidated Net sales coming from emerging markets | 50.00% | 50.00% | |||
Operating Segments | Oral, Personal and Home Care | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | $ 3,273 | 3,514 | $ 6,483 | 7,046 | |
Total Operating profit | 936 | 953 | 1,825 | 1,895 | |
Operating Segments | Oral, Personal and Home Care | North America | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 793 | 780 | 1,593 | 1,569 | |
Total Operating profit | 250 | 223 | 489 | 441 | |
Operating Segments | Oral, Personal and Home Care | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 938 | 1,126 | 1,786 | 2,213 | |
Total Operating profit | 284 | 321 | 531 | 629 | |
Operating Segments | Oral, Personal and Home Care | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 606 | 602 | 1,194 | 1,212 | |
Total Operating profit | 138 | 147 | 279 | 294 | |
Operating Segments | Oral, Personal and Home Care | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 697 | 752 | 1,440 | 1,544 | |
Total Operating profit | 219 | 217 | 438 | 447 | |
Operating Segments | Oral, Personal and Home Care | Africa/Eurasia | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 239 | 254 | 470 | 508 | |
Total Operating profit | 45 | 45 | 88 | 84 | |
Operating Segments | Pet Nutrition | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 572 | 552 | 1,124 | 1,090 | |
Total Operating profit | 162 | 146 | 317 | 293 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating profit | $ (154) | $ (167) | $ (331) | $ (396) |
Fair Value Measurements and F44
Fair Value Measurements and Financial Instruments (Details 1) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Designated derivative instruments | ||
Derivative assets, designated | $ 115 | $ 138 |
Derivative liabilities, designated | 27 | 5 |
Derivatives not designated | ||
Derivative assets not designated | 0 | 13 |
Derivative liabilities not designated | 0 | 0 |
Total derivative instruments, Assets | 115 | 151 |
Total derivative instruments, Liabilities | 27 | 5 |
Other financial instruments | ||
Total other financial instruments | 163 | 61 |
Other current assets | ||
Other financial instruments | ||
Marketable securities | 163 | 61 |
Other current assets | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 4 | 0 |
Other current assets | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 97 | 131 |
Other current assets | Commodity contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 1 | 0 |
Other assets | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 12 | 7 |
Other assets | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 1 | 0 |
Derivatives not designated | ||
Derivative assets not designated | 0 | 13 |
Other accruals | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Other accruals | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 27 | 5 |
Other accruals | Commodity contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Other liabilities | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Other liabilities | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Derivatives not designated | ||
Derivative liabilities not designated | $ 0 | $ 0 |
Fair Value Measurements and F45
Fair Value Measurements and Financial Instruments (Details 2) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying value of long-term debt | $ 6,569 | $ 6,544 |
Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt | $ 7,041 | $ 6,767 |
Fair Value Measurements and F46
Fair Value Measurements and Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Currency Contracts | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | $ 5 | $ 181 | $ 5 | $ 181 |
Activity related to derivatives not designated as hedging instruments [Abstract] | ||||
Gain (loss) on instruments | 2 | (5) | 5 | 0 |
Gain (loss) on hedged items | (2) | 6 | (5) | 1 |
Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,597 | 2,574 | 1,597 | 2,574 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | (5) | (9) | 4 | (1) |
Gain (loss) on hedged items | 5 | 9 | (4) | 1 |
Fair Value Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 347 | 1,136 | 347 | 1,136 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | (6) | (5) | (5) | (3) |
Gain (loss) on hedged items | 6 | 5 | 5 | 3 |
Fair Value Hedges | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,250 | 1,438 | 1,250 | 1,438 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | 1 | (4) | 9 | 2 |
Gain (loss) on hedged items | (1) | 4 | (9) | (2) |
Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 714 | 676 | 714 | 676 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 7 | (5) | (7) | 1 |
Gain (loss) reclassified into Cost of sales | (2) | 1 | 0 | 7 |
Cash Flow Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 705 | 666 | 705 | 666 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 5 | (6) | (9) | 1 |
Gain (loss) reclassified into Cost of sales | (3) | 1 | 0 | 8 |
Cash Flow Hedges | Commodity Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 9 | 10 | 9 | 10 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 2 | 1 | 2 | 0 |
Gain (loss) reclassified into Cost of sales | 1 | 0 | 0 | (1) |
Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 2,175 | 1,622 | 2,175 | 1,622 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | 36 | (31) | (39) | 58 |
Gain (loss) on hedged items | (33) | 31 | 39 | (58) |
Net Investment Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 895 | 786 | 895 | 786 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | 10 | (29) | (16) | 33 |
Gain (loss) on hedged items | (7) | 29 | 16 | (33) |
Net Investment Hedges | Foreign Currency Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,280 | 836 | 1,280 | 836 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | 26 | (2) | (23) | 25 |
Gain (loss) on hedged items | $ (26) | $ 2 | $ 23 | $ (25) |
Fair Value Measurements and F47
Fair Value Measurements and Financial Instruments (Details 4) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other current assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | $ 163 | $ 61 |
Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities | 61 | |
Held-to-maturity Securities, Fair Value | 90 | |
Fair Value, Inputs, Level 1 | Other current assets | Deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | 163 | |
Fair Value, Inputs, Level 2 | Other current assets | Bonds Issued By Argentinian Government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | 50 | |
Fair Value, Inputs, Level 2 | Other assets | Bonds Issued By Argentinian Government | Estimate of Fair Value Measurement | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 11 |