Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net
sales of $3,867 million in third quarter 2016, a decrease of 3.5%
versus third quarter 2015. Global unit volume decreased 4.0%,
pricing increased 3.0% and foreign exchange was negative 2.5%.
Excluding divested businesses and the impact of the previously
disclosed deconsolidation of the Company’s Venezuelan operations,
unit volume increased 1.5%. Organic sales (Net sales excluding the
impact of foreign exchange, acquisitions, divestments and the
deconsolidation of the Company’s Venezuelan operations) grew
4.5%.
Net income and Diluted earnings per share in third quarter 2016
were $702 million and $0.78, respectively. Net income in third
quarter 2016 included $32 million ($0.04 per diluted share) of
aftertax charges resulting from the Company’s Global Growth and
Efficiency Program (the “2012 Restructuring Program”), a $63
million ($0.07 per diluted share) aftertax gain on the sale of land
in Mexico, $22 million ($0.02 per diluted share) of benefits
related to previously disclosed tax matters and an aftertax charge
of $4 million ($0.00 per diluted share) for a previously disclosed
litigation matter.
Net income and Diluted earnings per share in third quarter 2015
were $726 million and $0.80, respectively. Net income in third
quarter 2015 included a $120 million ($0.13 per diluted share)
aftertax gain on the sale of the Company’s South Pacific laundry
detergent business and $47 million ($0.05 per diluted share) of
aftertax charges resulting from the 2012 Restructuring Program and
an effective devaluation in Venezuela.
Excluding charges resulting from the 2012 Restructuring Program
in both periods, the gain on the sale of land in Mexico, the
benefits related to tax matters and the charge for a litigation
matter in 2016, and the gain on the sale of the Company’s South
Pacific laundry detergent business and the charge related to an
effective devaluation in Venezuela in 2015, Net income in third
quarter 2016 was $653 million, even with third quarter 2015, and
Diluted earnings per share in third quarter 2016 was $0.73, an
increase of 1% versus third quarter 2015. Excluding these items in
both periods, as applicable, and excluding Venezuela’s operating
results in both periods, Diluted earnings per share increased
double digit on a currency-neutral basis.
Gross profit margin was 60.1% in third quarter 2016 versus 58.7%
in third quarter 2015. Excluding charges from the 2012
Restructuring Program in both periods, Gross profit margin was
60.4% in third quarter 2016, an increase of 160 basis points versus
the year ago quarter. This increase was primarily driven by cost
savings from the Company’s funding-the-growth initiatives and the
2012 Restructuring Program, and higher pricing, partially offset by
higher raw and packaging material costs, which included foreign
exchange transaction costs, and the impact of the deconsolidation
of the Company’s Venezuelan operations effective December 31,
2015.
Selling, general and administrative expenses were 34.2% of Net
sales in third quarter 2016 versus 33.7% of Net sales in third
quarter 2015. Excluding charges from the 2012 Restructuring Program
in both periods, Selling, general and administrative expenses
increased by 70 basis points to 34.0% of Net sales in third quarter
2016, primarily due to increased advertising investment. Worldwide
advertising investment increased 3% to $339 million versus $328
million in the year ago quarter.
Operating profit decreased to $1,071 million in third quarter
2016 compared to $1,136 million in third quarter 2015. Excluding
charges resulting from the 2012 Restructuring Program in both
periods, the gain on the sale of land in Mexico and the charge for
a litigation matter in 2016, and the gain on the sale of the
Company’s South Pacific laundry detergent business and the charge
related to an effective devaluation in Venezuela in 2015, Operating
profit was $1,022 million in third quarter 2016, an increase of 1%
versus third quarter 2015. Operating profit margin was 27.7% in
third quarter 2016 versus 28.4% in third quarter 2015. Excluding
these items in both periods, as applicable, Operating profit margin
was 26.4% in third quarter 2016, an increase of 110 basis points
versus the year ago quarter.
Net cash provided by operations year-to-date was $2,317 million
compared to $2,108 million in the comparable 2015 period,
reflecting strong operating earnings and the timing of income tax
payments, partially offset by the impact of the deconsolidation of
the Company’s Venezuelan operations effective December 31, 2015 and
a voluntary contribution to an employee postretirement plan.
Working capital as a percentage of Net sales was negative 3.4%
compared to negative 1.3% in the year ago period, reflecting the
Company’s continued tight focus on working capital and the impact
of reclassifying current deferred tax assets to noncurrent deferred
tax assets upon the adoption of a new accounting standard.
Ian Cook, Chairman, President and Chief Executive Officer,
commented on the third quarter results, “As expected, foreign
currency headwinds continued during the third quarter, which
together with the impact of the deconsolidation of the Company’s
Venezuelan operations resulted in the 3.5% net sales decline.
“In the face of continued challenging macroeconomic conditions
worldwide, we are pleased to have achieved another quarter of
strong organic sales growth, with every operating division
contributing. The 4.5% worldwide organic sales growth was led by
emerging markets where organic sales grew a strong 8.0%, despite
economic challenges in several countries.
“Pleasingly, the sizable expansion in gross profit margin this
quarter funded an increase in advertising, both absolutely and as a
percent to sales.
“Colgate’s leadership of the global toothpaste market continued
during the quarter with its global market share now at 44.0%
year-to-date. Our global leadership in manual toothbrushes also
continued with Colgate’s global market share in that category now
at 33.2% year-to-date.
“As we look ahead, macroeconomic conditions and foreign exchange
volatility remain challenging. We continue to expect a low to mid
single-digit net sales decline for the year due to currency
headwinds and the impact of the deconsolidation of the Company’s
Venezuelan operations. Despite this, we continue to anticipate
another year of solid organic sales growth in 2016, driven by a
full new product pipeline across all categories and
geographies.
“On a GAAP basis, based on current spot rates, we continue to
plan for a year of gross margin expansion and continue to expect
high double-digit earnings per share growth, reflecting the impact
of the 2015 charge related to the deconsolidation of our Venezuelan
operations.
“Excluding the 2015 and 2016 one-time items, based on current
spot rates, we continue to plan for a year of gross margin
expansion, and continue to expect earnings per share to be flat
with 2015 on a dollar basis. This reflects a double-digit increase
in earnings per share on a currency-neutral basis, excluding
Venezuela from 2015 and 2016 results.”
In closing, Mr. Cook commented on the outlook for 2017, “Looking
ahead, we continue to see uncertainty in foreign exchange rates. As
we enter our global budget process, on a GAAP basis, we are
planning for a year of gross margin expansion and mid to high
single-digit earnings per share growth on a dollar basis.
“Excluding charges related to the 2012 Restructuring Program in
both periods and the other 2016 one-time items, we are planning for
a year of gross margin expansion and, consistent with our long-term
strategy, our goal is to return to double-digit earnings per share
growth on a dollar basis.”
At 11:00 a.m. ET today, Colgate will host a conference call to
elaborate on third quarter results. To access this call as a
webcast, please go to Colgate’s website at
http://www.colgatepalmolive.com.
The following are comments about divisional performance for
third quarter 2016 versus the year ago period. See attached
Geographic Sales Analysis Percentage Changes and Segment
Information tables for additional information on divisional net
sales and operating profit.
North America (21% of Company
Sales)
North America Net sales increased 1.0% in third quarter 2016.
Unit volume increased 1.5% with 0.5% lower pricing, while foreign
exchange was even with the year ago quarter. Organic sales
increased 1.0% during the quarter.
Operating profit in North America increased 6% in the third
quarter of 2016 to $273 million, or 150 basis points to 34.1% of
Net sales. This increase in Operating profit as a percentage of Net
sales was due to an increase in Gross profit and a decrease in
Selling, general and administrative expenses, both as a percentage
of Net sales. This increase in Gross profit was primarily driven by
cost savings from the Company’s funding-the-growth initiatives,
which were partially offset by higher raw and packaging material
costs. This decrease in Selling, general and administrative
expenses was due to lower overhead expenses, which were partially
offset by an increase in advertising investment.
In the U.S., new product launches are contributing to volume
growth. Market share gains year-to-date were seen in toothpaste,
manual toothbrushes, mouthwash, liquid hand soap, body wash, liquid
cleaners and fabric conditioners. Colgate’s share of the toothpaste
market strengthened to 35.7% year-to-date, up 0.3 share points
versus the year ago period, driven by strong sales of Colgate Total
Daily Repair, Colgate Optic White Platinum High Impact White,
Colgate Sensitive Smart White and Tom’s of Maine Rapid Relief
Sensitive toothpastes. In manual toothbrushes, Colgate strengthened
its brand market leadership in the U.S. with its market share in
that category at 41.9% year-to-date, up 0.5 share points versus the
year ago period. Strong sales of Colgate 360° Enamel Health
Sensitive, Colgate 360° Optic White Platinum and Colgate Total 360°
4 Zone manual toothbrushes contributed to volume growth in the
quarter.
Successful new products driving volume growth in the U.S. in
other categories include Colgate Total Daily Repair and Colgate
Kids mouthwashes, Colgate Total 360° Whole Mouth Clean battery
toothbrush, Softsoap Pure foaming hand soap, Softsoap Luminous Oils
and Irish Spring Signature For Men body washes and Palmolive Fusion
Clean dish liquid.
Latin America (24% of Company
Sales)
Latin America Net sales decreased 13.0% in third quarter 2016.
Unit volume decreased 16.0% with 9.0% higher pricing, while foreign
exchange was negative 6.0%. Excluding the impact of the
deconsolidation of the Company’s Venezuelan operations, unit volume
increased 1.5% driven by volume gains in Mexico. Organic sales for
Latin America increased 10.5%.
Operating profit in Latin America decreased 1% in the third
quarter of 2016 to $298 million, while as a percentage of Net sales
it increased 410 basis points to 32.3% of Net sales. This increase
in Operating profit as a percentage of Net sales was primarily due
to an increase in Gross profit and a decrease in Selling, general
and administrative expenses, both as a percentage of Net sales.
This increase in Gross profit was due to higher pricing as cost
savings from the Company’s funding-the-growth initiatives were
offset by higher costs, which included foreign exchange transaction
costs and the impact of the deconsolidation of the Company’s
Venezuelan operations effective December 31, 2015. This decrease in
Selling, general and administrative expenses was due to lower
overhead expenses, which were partially offset by an increase in
advertising investment.
Colgate strengthened its leadership in toothpaste in Latin
America during the quarter, driven by market share gains in Brazil,
Peru, Uruguay, Paraguay, Puerto Rico, Nicaragua and Costa Rica.
Strong sales of Colgate Luminous White Advanced Expert, Colgate
Sensitive Pro-Alivio, Colgate Total Professional Daily Repair and
Colgate Triple Action Extra Whitening toothpastes contributed to
volume growth throughout the region. Colgate’s leadership in the
manual toothbrush category continued throughout the region, driven
by strong sales of Colgate Luminous White Advanced Toothbrush +
Built-In Whitening Pen, Colgate 360° Gold and Colgate Professional
Lab series manual toothbrushes.
Products in other categories contributing to growth throughout
the region include Colgate Plax Ice Infinity mouthwash, Protex
Pro-Hidrata shower gel, bar soap and liquid hand soap, Protex for
Men 3 in 1 shower gel and bar soap, Palmolive Naturals Almond and
Omega Oil shower gel, bar soap and liquid hand soap, Suavitel
Superior Care Vanilla fabric conditioner, Axion Complete dish
liquid and Fabuloso Pure Cleaning liquid cleaner.
Europe (16% of Company
Sales)
Europe Net sales decreased 1.5% in third quarter 2016. Unit
volume increased 4.0%, pricing decreased 2.5% and foreign exchange
was negative 3.0%. Volume gains were led by Germany and the United
Kingdom. Organic sales for Europe increased 1.5%.
Operating profit in Europe decreased 8% in the third quarter of
2016 to $158 million, or 200 basis points to 25.9% of Net sales.
This decrease in Operating profit as a percentage of Net sales was
primarily due to a decrease in Gross profit and an increase in
Selling, general and administrative expenses, both as a percentage
of Net sales. This decrease in Gross profit was primarily driven by
higher raw and packaging material costs, which included foreign
exchange transaction costs, and lower pricing due to increased
in-store promotional activities, partially offset by cost savings
from the Company’s funding-the-growth initiatives. The increase in
Selling, general and administrative expenses was due to higher
advertising investment.
Colgate maintained its oral care leadership in Europe during the
quarter, driven by toothpaste market share gains in Spain, France,
Belgium, Austria, Denmark, Poland, Hungary, Czech Republic, Italy,
Bulgaria, Bosnia and Latvia. Successful premium products
contributing to volume gains in oral care include Colgate Max White
White and Protect, Colgate Total Proof, Colgate Sensitive Pro
Relief Extra Strength, Colgate Kids and elmex Sensitive
Professional Repair & Prevent toothpastes, Colgate Max White
Expert White Toothbrush + Built-In Whitening Pen and Colgate 360°
Advanced manual toothbrushes.
Premium innovations contributing to volume growth in other
product categories include Sanex Advanced shower oils and body
balms, Palmolive Gourmet shower gels, Palmolive Sensorials line of
dish liquids, Palmolive Skin Garden shower gel, bath foam, liquid
hand soap, bar soap and body lotion, Sanex Men shower gel and
deodorant, a range of Ajax specialist kitchen spray cleaners and
Soupline Complete Care fabric conditioner.
Asia Pacific (19% of Company
Sales)
Asia Pacific Net sales decreased 1.5% during third quarter 2016.
Unit volume was even with the year ago quarter while pricing
increased 0.5% and foreign exchange was negative 2.0%. Excluding
divested businesses, unit volume increased 2.5%. Volume gains were
led by the Philippines and India. Organic sales for Asia Pacific
increased 3.0%.
Operating profit in Asia Pacific increased to $230 million in
the third quarter of 2016, or 60 basis points to 31.8% of Net
sales. This increase in Operating profit as a percentage of Net
sales was primarily due to an increase in Gross profit and a
decrease in Selling, general and administrative expenses, both as a
percentage of Net sales. This increase in Gross profit was mainly
driven by cost savings from the Company’s funding-the-growth
initiatives and the 2012 Restructuring Program, mix and higher
pricing, partially offset by higher raw and packaging material
costs, which included foreign exchange transaction costs. This
decrease in Selling, general and administrative expenses was due to
lower overhead expenses, which were partially offset by an increase
in advertising investment.
Colgate continued its toothpaste leadership in the Asia Pacific
region during the quarter, with market share gains in Hong Kong,
Taiwan, the Philippines, New Zealand, Vietnam and Pakistan.
Successful new products including Colgate 360° Charcoal Gel,
Colgate Sensitive Salt Minerals, Colgate Total Pro Breath Health,
Colgate Enamel Health, Colgate Optic White Power White, Colgate
Fresh Confidence Bamboo Charcoal, Colgate Sensitive Clove Essence,
Colgate Naturals and Colgate MinionsTM toothpastes contributed to
volume growth in the region.
Successful products contributing to volume growth in other
categories in the region include Colgate Pain Out dental gel,
Colgate A1, Colgate Slim Soft Charcoal Spiral, Colgate Gum Clean,
Colgate Zig Zag Charcoal, Colgate Super Flexi Black and Colgate
MinionsTM manual toothbrushes, Colgate Plax Ice Infinity and
Colgate Plax Spicy Fresh mouthwash, Palmolive Oil Infusions body
wash, liquid hand soap and body lotions and Protex Thai Therapy bar
soap.
Africa/Eurasia (6% of Company
Sales)
Africa/Eurasia Net sales increased 1.5% during third quarter
2016. Unit volume decreased 2.0%, pricing increased 10.5% and
foreign exchange was negative 7.0%. Volume gains in the North
Africa/Middle East region were more than offset by volume declines
in South Africa. Organic sales for Africa/Eurasia increased
8.5%.
Operating profit in Africa/Eurasia increased 14% in the third
quarter of 2016 to $50 million, or 210 basis points to 20.0% of Net
sales. This increase in Operating profit as a percentage of Net
sales was primarily due to an increase in Gross profit, partially
offset by an increase in Selling, general and administrative
expenses, both as a percentage of Net sales. This increase in Gross
profit was mainly driven by cost savings from the Company’s
funding-the-growth initiatives and higher pricing, partially offset
by higher costs, primarily driven by higher raw and packaging
material costs, which included foreign exchange transaction costs.
This increase in Selling, general and administrative expenses was
due to higher overhead expenses and increased advertising
investment.
Colgate continued its toothpaste leadership in Africa/Eurasia
during the quarter, with market share gains in Russia, Turkey,
Saudi Arabia, South Africa, Israel, the United Arab Emirates,
Tunisia, Kuwait, Kazakhstan, Oman and Qatar. Successful products
contributing to sales in the region include Colgate Total Pro
Breath Health, Colgate Optic White Lasting White and Colgate
Sensitive Pro-Relief Repair & Prevent toothpastes, Colgate 360°
Charcoal Gold and Colgate Slim Soft Sensitive Gum Care manual
toothbrushes, Palmolive Aroma Sensations and Palmolive Naturals
shower gels and Lady Speed Stick Bio Protection deodorant.
Hill’s Pet Nutrition (14% of Company
Sales)
Hill’s Net sales increased 2.5% in third quarter 2016. Unit
volume decreased 2.0% with 3.5% higher pricing, while foreign
exchange was positive 1.0%. Volume declines in the United States,
Western Europe and Japan were partially offset by volume gains in
the rest of Asia, Latin America and Russia. Hill’s organic sales
increased 1.5%.
Hill’s Operating profit increased 3% in the third quarter of
2016 to $162 million, or 10 basis points to 28.9% of Net sales.
This increase in Operating profit as a percentage of Net sales was
due to an increase in Gross profit and a decrease in Other (income)
expense, net, partially offset by an increase in Selling, general
and administrative expenses. This increase in Gross profit was
mainly driven by cost savings from the Company’s funding-the-growth
initiatives and higher pricing, partially offset by higher costs,
primarily driven by higher raw and packaging material costs, which
included foreign exchange transaction costs. This increase in
Selling, general and administrative expenses was due to increased
advertising investment and higher overhead expenses. This decrease
in Other (income) expense, net was in part due to a foreign sales
tax benefit.
Successful products contributing to sales in the U.S. include
Hill’s Prescription Diet Metabolic + Mobility and Metabolic +
Urinary, Hill’s Prescription Diet z/d for skin and food
sensitivities, Hill’s Prescription Diet i/d for digestive care,
Hill’s Prescription Diet Derm Defense for environmental
sensitivities, Hill’s Science Diet Urinary and Hairball Control,
Hill’s Science Diet Perfect Weight stews, Hill’s Science Diet
Healthy Cuisine and Hill’s Science Diet Sensitive Stomach and Skin
Small & Toy Breed.
Successful products contributing to sales internationally
include Hill’s Prescription Diet Metabolic + Mobility and Metabolic
+ Urinary, Hill’s Prescription Diet Derm Defense, Hill’s
Prescription Diet z/d, Hill’s Prescription Diet i/d, Hill’s Science
Diet Urinary and Hill’s Science Diet Perfect Weight.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global
consumer products company, tightly focused on Oral Care, Personal
Care, Home Care and Pet Nutrition. Colgate sells its products in
over 200 countries and territories around the world under such
internationally recognized brand names as Colgate, Palmolive, Speed
Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso,
Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso,
Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s
Prescription Diet and Hill’s Ideal Balance. For more information
about Colgate’s global business, visit the Company’s website at
http://www.colgatepalmolive.com. To learn more about Colgate Bright
Smiles, Bright Futures® oral health education program, please visit
http://www.colgatebsbf.com. CL-E
Market Share Information
Management uses market share information as a key indicator to
monitor business health and performance. References to market share
in this press release are based on a combination of consumption and
market share data provided by third-party vendors, primarily
Nielsen, and internal estimates. All market share references
represent the percentage of the dollar value of sales of our
products, relative to all product sales in the category in the
countries in which the Company competes and purchases data
(excluding Venezuela from all periods). The Company measures
year-to-date market shares from January 1 of the relevant year
through the most recent period for which market share data is
available, which typically reflects a lag time of one or two
months. The Company believes that the third-party vendors it uses
to provide data are reliable, but it has not verified the accuracy
or completeness of the data or any assumptions underlying the data.
In addition, market share information calculated by the Company may
be different from market share information calculated by other
companies due to differences in category definitions, the use of
data from different countries, internal estimates and other
factors.
Cautionary Statement on Forward-Looking
Statements
This press release and the related webcast may contain
forward-looking statements. Such statements may relate, for
example, to sales or volume growth, organic sales growth, profit or
profit margin growth, earnings per share growth (including on a
currency-neutral basis), financial goals, the impact of foreign
exchange volatility, cost-reduction plans including the 2012
Restructuring Program, tax rates, new product introductions or
commercial investment levels, among other matters. These statements
are made on the basis of our views and assumptions as of this time
and we undertake no obligation to update these statements except as
required by law. We caution investors that any such forward-looking
statements are not guarantees of future performance and that actual
events or results may differ materially from those statements.
Investors should consult the Company’s filings with the Securities
and Exchange Commission (including the information set forth under
the caption “Risk Factors” in the Company’s Annual Report on Form
10-K for the year ended December 31, 2015) for information about
certain factors that could cause such differences. Copies of these
filings may be obtained upon request from the Company’s Investor
Relations Department or on the Company’s website at
http://www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP
financial measures used in this earnings release and/or the related
webcast:
This release discusses Net sales growth (GAAP) and organic sales
growth, which is Net sales growth excluding the impact of foreign
exchange, acquisitions, divestments and the deconsolidation of the
Company’s Venezuelan operations (non-GAAP). Management believes the
organic sales growth measure provides investors and analysts with
useful supplemental information regarding the Company’s underlying
sales trends by presenting sales growth excluding the external
factor of foreign exchange as well as the impact from acquisitions,
divestments and the deconsolidation of the Company’s Venezuelan
operations. See “Geographic Sales Analysis Percentage Changes” for
the three and nine months ended September 30, 2016 vs 2015 included
with this release for a comparison of organic sales growth to Net
sales growth in accordance with GAAP.
To supplement Colgate’s Condensed Consolidated Statements of
Income presented in accordance with GAAP, the Company has disclosed
non-GAAP measures of operating results that exclude certain items.
Worldwide Gross profit, Gross profit margin, Selling, general and
administrative expenses, Selling, general and administrative
expenses as a percentage of Net sales, Other (income) expense, net,
Operating profit, Operating profit margin, Effective income tax
rate, Net income attributable to Colgate-Palmolive Company and
Diluted earnings per common share are discussed both as reported
(on a GAAP basis) and, as applicable, excluding charges resulting
from the 2012 Restructuring Program, a gain on the sale of land in
Mexico, benefits from previously disclosed tax matters, a charge
for a previously disclosed litigation matter, a gain on the sale of
the Company’s South Pacific laundry detergent business, charges
related to effective devaluations in Venezuela and a charge related
to a foreign tax matter (non-GAAP). These non-GAAP financial
measures exclude items that, either by their nature or amount,
management would not expect to occur as part of the Company’s
normal business on a regular basis, such as restructuring charges,
charges for certain litigation and tax matters, gains and losses
from certain divestitures and certain unusual, non-recurring items.
Investors and analysts use these financial measures in assessing
the Company’s business performance, and management believes that
presenting these financial measures on a non-GAAP basis provides
them with useful supplemental information to enhance their
understanding of the Company’s underlying business performance and
trends. These non-GAAP financial measures also enhance the ability
to compare period-to-period financial results. See “Non-GAAP
Reconciliations” for the three and nine months ended September 30,
2016 and 2015 included with this release for a reconciliation of
these financial measures to the related GAAP measures.
The Company uses these financial measures internally in its
budgeting process and as factors in determining compensation. While
the Company believes that these financial measures are useful in
evaluating the Company’s underlying business performance and
trends, this information should be considered as supplemental in
nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with GAAP. In addition, these non-GAAP financial
measures may not be the same as similar measures presented by other
companies.
The Company defines free cash flow before dividends as Net cash
provided by operations less Capital expenditures. As management
uses this measure to evaluate the Company’s ability to satisfy
current and future obligations, repurchase stock, pay dividends and
fund future business opportunities, the Company believes that it
provides useful information to investors. Free cash flow before
dividends is not a measure of cash available for discretionary
expenditures since the Company has certain non-discretionary
obligations such as debt service that are not deducted from the
measure. Free cash flow before dividends is not a GAAP measurement
and may not be comparable to similarly titled measures reported by
other companies. See “Condensed Consolidated Statements of Cash
Flows” for the nine months ended September 30, 2016 and 2015 for a
comparison of free cash flow before dividends to Net cash provided
by operations as reported in accordance with GAAP.
Explanatory Note Regarding
Currency-Neutral Calculations
Diluted earnings per share growth for third quarter 2016, on a
currency-neutral basis, eliminates from Diluted earnings per share
growth (GAAP) charges resulting from the 2012 Restructuring
Program, a gain on the sale of land in Mexico, benefits from
previously disclosed tax matters, a charge for a previously
disclosed litigation matter, a gain on the sale of the Company’s
South Pacific laundry detergent business, a charge related to an
effective devaluation in Venezuela, 2015 and 2016 Venezuela results
and period-over-period changes in foreign exchange rates in the
translation of local currency results into U.S. dollars.
Accordingly, for purposes of calculating Diluted earnings per share
growth for third quarter 2016, on a currency-neutral basis, third
quarter 2016 local currency results, which include the impact of
foreign currency transaction gains and losses, are translated into
U.S. dollars using average foreign exchange rates for third quarter
2015.
Management’s estimate of earnings per share growth on a
currency-neutral basis for full year 2016 eliminates from earnings
per share growth (GAAP) a charge related to the change of
accounting for the Company’s Venezuelan subsidiary, charges
resulting from the 2012 Restructuring Program, a gain on the sale
of land in Mexico, benefits from previously disclosed tax matters,
a charge for a previously disclosed litigation matter, charges
related to effective devaluations in Venezuela, a gain on the sale
of the Company’s South Pacific laundry detergent business, a charge
related to a foreign tax matter, a charge for a foreign competition
law matter, 2015 and 2016 Venezuela results and period-over-period
changes in foreign exchange rates in the translation of local
currency results into U.S. dollars. Accordingly, for purposes of
estimating earnings per share growth for full year 2016, on a
currency-neutral basis, estimated full year 2016 local currency
results, which include the impact of foreign currency transaction
gains and losses, are translated into U.S. dollars using 2015
average foreign exchange rates by quarter.
(See attached tables for third quarter
results.)
Table 1 Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Three Months Ended September 30, 2016 and 2015
(Dollars in Millions Except Per Share Amounts)
(Unaudited) 2016 2015 Net sales $ 3,867 $ 3,999
Cost of sales 1,543 1,652 Gross profit 2,324 2,347
Gross profit margin 60.1 % 58.7 % Selling, general
and administrative expenses 1,322 1,347 Other (income)
expense, net (69 ) (136 ) Operating profit 1,071 1,136
Operating profit margin 27.7 % 28.4 % Interest
(income) expense, net 25 5 Income before income taxes 1,046
1,131 Provision for income taxes 300 361 Effective
tax rate 28.7 % 31.9 % Net income including noncontrolling
interests 746 770 Less: Net income attributable to
noncontrolling interests 44 44 Net income attributable to
Colgate-Palmolive Company $ 702 $ 726 Earnings per common
share Basic $ 0.79 $ 0.81 Diluted $ 0.78 $ 0.80 Average
common shares outstanding Basic 891.9 900.1 Diluted 899.2 906.9
Table 2 Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Nine Months Ended September 30, 2016 and 2015
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2016 2015 Net sales $ 11,474 $ 12,135 Cost of
sales 4,598 5,029 Gross profit 6,876 7,106 Gross
profit margin 59.9 % 58.6 % Selling, general and
administrative expenses 3,996 4,178 Other (income) expense,
net (2 ) — Operating profit 2,882 2,928 Operating
profit margin 25.1 % 24.1 % Interest (income) expense, net
78 19 Income before income taxes 2,804 2,909
Provision for income taxes 846 940 Effective tax rate 30.2 %
32.3 % Net income including noncontrolling interests 1,958
1,969 Less: Net income attributable to noncontrolling
interests 123 127 Net income attributable to
Colgate-Palmolive Company $ 1,835 $ 1,842 Earnings per
common share Basic $ 2.05 $ 2.04 Diluted $ 2.04 $ 2.02
Average common shares outstanding Basic 893.2 904.1 Diluted 900.2
911.8
Table 3 Colgate-Palmolive
Company Condensed Consolidated Balance Sheets
As of September 30, 2016, December 31, 2015 and September
30, 2015 (Dollars in Millions) (Unaudited)
September 30, December 31, September 30, 2016 2015 2015 Cash and
cash equivalents $ 1,298 $ 970 $ 1,445 Receivables, net 1,560 1,427
1,561 Inventories 1,193 1,180 1,277 Other current assets 713 807
806 Property, plant and equipment, net 3,837 3,796 3,959 Other
assets, including goodwill and intangibles* 4,022 3,755
4,491 Total assets $ 12,623 $ 11,935 $
13,539 Total debt* $ 6,523 $ 6,548 $ 6,766 Other
current liabilities 3,748 3,232 3,701 Other non-current liabilities
2,124 2,199 2,482 Total liabilities 12,395
11,979 12,949 Total Colgate-Palmolive Company shareholders' equity
(133 ) (299 ) 255 Noncontrolling interests 361 255
335 Total liabilities and shareholders' equity $ 12,623
$ 11,935 $ 13,539
Supplemental
Balance Sheet Information Debt less cash, cash equivalents and
marketable securities** $ 4,980 $ 5,476 $ 5,175 Working capital %
of sales (3.4 )% 0.5 % (1.3 )%
*To conform to the current year
presentation required by the FASB Accounting Standards Update No.
2015-03 “Simplifying the Presentation of Debt Issuance Costs,”
prior period balances of debt issuance costs have been reclassified
from Other assets, including goodwill and intangibles, and are now
presented as a direct deduction to Total debt.
**Marketable securities of $245, $102 and $146 as of
September 30, 2016, December 31, 2015 and September 30, 2015,
respectively, are included in Other current assets.
Table 4 Colgate-Palmolive Company Condensed
Consolidated Statements of Cash Flows For the Nine
Months Ended September 30, 2016 and 2015 (Dollars in
Millions) (Unaudited) 2016 2015
Operating
Activities Net income including noncontrolling interests $
1,958 $ 1,969 Adjustments to reconcile net income including
noncontrolling interests to net cash provided by operations:
Depreciation and amortization 329 337 Restructuring and termination
benefits, net of cash (1 ) 68 Venezuela remeasurement charge — 34
Stock-based compensation expense 102 104 Gain on sale of land in
Mexico (97 ) — Gain on sale of South Pacific laundry detergent
business — (187 ) Deferred income taxes 50 (42 ) Voluntary benefit
plan contribution (53 ) — Cash effects of changes in: Receivables
(126 ) (172 ) Inventories 4 1 Accounts payable and other accruals
101 (18 ) Other non-current assets and liabilities 50 14
Net cash provided by operations 2,317 2,108
Investing Activities Capital expenditures (392 ) (459 )
Purchases of marketable securities and investments (271 ) (499 )
Proceeds from sale of marketable securities and investments 158 398
Proceeds from sale of land in Mexico 60 — Proceeds from sale of
South Pacific laundry detergent business — 221 Payment for
acquisitions, net of cash acquired — (13 ) Other — 8
Net cash used in investing activities (445 ) (344 )
Financing Activities Principal payments on debt (5,446 )
(6,691 ) Proceeds from issuance of debt 5,447 7,293 Dividends paid
(1,053 ) (1,033 ) Purchases of treasury shares (913 ) (1,196 )
Proceeds from exercise of stock options and excess tax benefits 418
301 Net cash used in financing activities (1,547 )
(1,326 ) Effect of exchange rate changes on Cash and cash
equivalents 3 (82 ) Net increase in Cash and cash
equivalents 328 356 Cash and cash equivalents at beginning of the
period 970 1,089 Cash and cash equivalents at end of
the period $ 1,298 $ 1,445
Supplemental
Cash Flow Information Free cash flow before dividends (Net cash
provided by operations less Capital expenditures) Net cash provided
by operations $ 2,317 $ 2,108 Less: Capital expenditures (392 )
(459 ) Free cash flow before dividends $ 1,925 $ 1,649
Income taxes paid $ 696 $ 967
Table 5 Colgate-Palmolive Company
Segment Information For the Three and Nine Months
Ended September 30, 2016 and 2015 (Dollars in
Millions) (Unaudited) Three Months Ended September 30,
Nine Months Ended September 30, 2016 2015 2016 2015
Net
Sales Oral, Personal and Home Care North America $ 800 $
791 $ 2,393 $ 2,360 Latin America 924 1,064 2,710 3,277 Europe 609
617 1,803 1,829 Asia Pacific 723 735 2,163 2,279 Africa/Eurasia 250
246 720 754 Total Oral, Personal
and Home Care 3,306 3,453 9,789 10,499 Pet Nutrition 561
546 1,685 1,636
Total Net
Sales $ 3,867 $ 3,999 $ 11,474 $ 12,135
Three Months Ended September 30, Nine Months
Ended September 30, 2016 2015 2016 2015
Operating Profit
Oral, Personal and Home Care North America $ 273 $ 258 $ 762
$ 699 Latin America 298 300 829 929 Europe 158 172 437 466 Asia
Pacific 230 229 668 676 Africa/Eurasia 50 44 138
128 Total Oral, Personal and Home Care 1,009
1,003 2,834 2,898 Pet Nutrition 162 157 479 450 Corporate(1)
(100 ) (24 ) (431 ) (420 )
Total Operating Profit $
1,071 $ 1,136 $ 2,882 $ 2,928
Note:
(1) 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.
Corporate Operating profit (loss) for the three months ended
September 30, 2016 includes charges of $42 related to the 2012
Restructuring Program, a charge of $6 for a previously disclosed
litigation matter and a gain of $97 resulting from the sale of land
in Mexico. Corporate Operating profit (loss) for the three months
ended September 30, 2015 included charges of $46 related to the
2012 Restructuring Program, a charge of $18 related to the
remeasurement of the Company’s Venezuelan subsidiary’s local
currency-denominated net monetary assets as a result of an
effective devaluation and a gain of $187 on the sale of the
Company’s laundry detergent business in the South Pacific.
Corporate Operating profit (loss) for the nine months ended
September 30, 2016 includes charges of $156 related to the 2012
Restructuring Program, a charge of $6 for a previously disclosed
litigation matter and a gain of $97 resulting from the sale of land
in Mexico. Corporate Operating profit (loss) for the nine months
ended September 30, 2015 included charges of $198 related to the
2012 Restructuring Program, charges of $34 related to the
remeasurement of the Company’s Venezuelan subsidiary’s local
currency-denominated net monetary assets as a result of effective
devaluations and a gain of $187 on the sale of the Company’s
laundry detergent business in the South Pacific.
Table 6
Colgate-Palmolive Company Geographic Sales
Analysis Percentage Changes For the Three Months
Ended September 30, 2016 vs 2015 (Unaudited)
COMPONENTS OF SALES
CHANGE Pricing
Coupons Sales Consumer & Change
Organic As Reported Organic Ex-Divested
Trade Foreign
Region
As
Reported
Sales
Change
Volume
(1)
Volume
Volume
(2)
Incentives
Exchange
Total Company (3.5 )% 4.5 % (4.0 )% 1.5 % 1.5 % 3.0 %
(2.5 )%
Europe (1.5 )% 1.5 % 4.0 % 4.0 % 4.0 % (2.5
)% (3.0 )%
Latin America (3) (13.0 )% 10.5 %
(16.0 )% 1.5 % 1.5 % 9.0 % (6.0 )%
Asia Pacific
(4) (1.5 )% 3.0 % — % 2.5 % 2.5 % 0.5 % (2.0 )%
Africa/Eurasia 1.5 % 8.5 % (2.0 )% (2.0 )% (2.0 )% 10.5 %
(7.0 )%
Total International (6.0 )% 6.0 % (5.5 )% 2.0
% 2.0 % 4.0 % (4.5 )%
North America 1.0 % 1.0 % 1.5 %
1.5 % 1.5 % (0.5 )% — %
Total CP Products (4.5 )% 4.5
% (4.0 )% 2.0 % 2.0 % 2.5 % (3.0 )%
Hill's 2.5 % 1.5
% (2.0 )% (2.0 )% (2.0 )% 3.5 % 1.0 %
Emerging
Markets (5) (6.0 )% 8.0 % (7.0 )% 2.0 % 2.0 % 6.0 % (5.0
)%
Developed Markets (0.5 )% 1.0 % — % 1.0 % 1.0 % —
% (0.5 )% Notes: (1) As Reported Volume includes the impact of
acquisitions, divestments and the deconsolidation of the Company’s
Venezuelan operations, as applicable. (2) Ex-Divested Volume
excludes the impact of divestments and the deconsolidation of the
Company’s Venezuelan operations, as applicable. (3)
Effective December 31, 2015, the Company concluded it no longer met
the accounting criteria for consolidation of its Venezuelan
subsidiary (“CP Venezuela”) and began accounting for CP Venezuela
using the cost method of accounting. As a result, effective
December 31, 2015, CP Venezuela’s net assets and results are no
longer included in the Company’s Consolidated Financial Statements.
The impact of the deconsolidation of the Company’s Venezuelan
operations on three months sales and volume was 4.5% for the Total
Company. (4) The sale of the Company’s laundry detergent
business in the South Pacific was completed on August 31, 2015. The
impact of the sale of the Company’s laundry detergent business in
the South Pacific on three months sales and volume was 0.5% for the
Total Company. (5) Emerging Markets include Latin America,
Asia (excluding Japan), Africa/Eurasia and Central Europe.
Table
7 Colgate-Palmolive Company Geographic Sales
Analysis Percentage Changes For the Nine Months Ended
September 30, 2016 vs 2015 (Unaudited)
COMPONENTS OF SALES CHANGE
Pricing Coupons
Sales Consumer & Change Organic
As Reported Organic Ex-Divested Trade
Foreign
Region
As
Reported
Sales
Change
Volume
(1)
Volume
Volume(2)
Incentives
Exchange
Total Company (5.5 )% 4.5 % (3.0 )% 2.0 % 2.0 % 2.5 %
(5.0 )%
Europe (1.5 )% 1.0 % 4.0 % 4.0 % 4.0 % (3.0
)% (2.5 )%
Latin America (3) (17.5 )% 10.0 %
(13.5 )% 1.5 % 1.5 % 8.5 % (12.5 )%
Asia Pacific
(4) (5.0 )% 3.0 % (1.0 )% 2.5 % 2.5 % 0.5 % (4.5 )%
Africa/Eurasia (4.5 )% 8.0 % (1.0 )% (1.0 )% (1.0 )% 9.0 %
(12.5 )%
Total International (9.0 )% 5.5 % (4.5 )%
2.0 % 2.0 % 3.5 % (8.0 )%
North America 1.5 % 2.0 %
3.0 % 3.0 % 3.0 % (1.0 )% (0.5 )%
Total CP Products
(7.0 )% 4.5 % (3.5 )% 2.0 % 2.0 % 2.5 % (6.0 )%
Hill's 3.0 % 3.5 % 1.0 % 1.0 % 1.0 % 2.5 % (0.5 )%
Emerging Markets (5) (10.0 )% 7.0 % (6.0 )%
1.5 % 1.5 % 5.5 % (9.5 )%
Developed Markets (0.5 )%
2.0 % 1.0 % 2.5 % 2.5 % (0.5 )% (1.0 )% Notes: (1) As Reported
Volume includes the impact of acquisitions, divestments and the
deconsolidation of the Company’s Venezuelan operations, as
applicable. (2) Ex-Divested Volume excludes the impact of
divestments and the deconsolidation of the Company’s Venezuelan
operations, as applicable. (3) Effective December 31, 2015,
the Company concluded it no longer met the accounting criteria for
consolidation of its Venezuelan subsidiary (“CP Venezuela”) and
began accounting for CP Venezuela using the cost method of
accounting. As a result, effective December 31, 2015, CP
Venezuela’s net assets and results are no longer included in the
Company’s Consolidated Financial Statements. The impact of the
deconsolidation of the Company’s Venezuelan operations on nine
months sales and volume was 4.0% for the Total Company. (4)
The sale of the Company’s laundry detergent business in the South
Pacific was completed on August 31, 2015. The impact of the sale of
the Company’s laundry detergent business in the South Pacific on
nine months sales and volume was 0.5% for the Total Company.
(5) Emerging Markets include Latin America, Asia (excluding Japan),
Africa/Eurasia and Central Europe.
Table 8
Colgate-Palmolive Company Non-GAAP
Reconciliations For the Three Months Ended September
30, 2016 and 2015 (Dollars in Millions Except Per
Share Amounts) (Unaudited)
Gross Profit 2016 2015 Gross profit,
GAAP $ 2,324 $ 2,347 2012 Restructuring Program 11 3
Gross profit, non-GAAP $ 2,335 $ 2,350
Basis Point Gross Profit Margin 2016
2015 Change Gross profit margin, GAAP 60.1 %
58.7 % 140 2012 Restructuring Program 0.3 % 0.1 % Gross
profit margin, non-GAAP 60.4 % 58.8 % 160
Selling, General and Administrative Expenses 2016
2015 Selling, general and administrative expenses, GAAP $
1,322 $ 1,347 2012 Restructuring Program (9 ) (15 ) Selling,
general and administrative expenses, non-GAAP $ 1,313 $
1,332
Basis Point Selling, General and
Administrative Expenses as a Percentage of Net Sales
2016 2015 Change Selling, general and
administrative expenses as a percentage of Net sales, GAAP 34.2 %
33.7 % 50 2012 Restructuring Program (0.2 )% (0.4 )%
Selling, general and administrative expenses as a percentage of Net
sales, non-GAAP 34.0 % 33.3 % 70
Other
(Income) Expense, Net 2016 2015 Other (income)
expense, net, GAAP $ (69 ) $ (136 ) 2012 Restructuring Program (22
) (28 ) Gain on sale of land in Mexico 97 — Charge for a previously
disclosed litigation matter (6 ) — Venezuela remeasurement charge —
(18 ) Gain on sale of South Pacific laundry detergent business —
187 Other (income) expense, net, non-GAAP $ —
$ 5
Operating Profit 2016
2015 % Change
Operating profit, GAAP
$ 1,071 $ 1,136 (6 )% 2012 Restructuring Program 42 46 Gain on sale
of land in Mexico (97 ) — Charge for a previously disclosed
litigation matter 6 — Venezuela remeasurement charge — 18 Gain on
sale of South Pacific laundry detergent business — (187 )
Operating profit, non-GAAP $ 1,022 $ 1,013 1 %
Basis Point Operating Profit Margin
2016 2015 Change Operating profit margin, GAAP
27.7 % 28.4 % (70 ) 2012 Restructuring Program 1.1 % 1.1 % Gain on
sale of land in Mexico (2.5 )% — % Charge for a previously
disclosed litigation matter 0.1 % — % Venezuela remeasurement
charge — % 0.5 % Gain on sale of South Pacific laundry detergent
business — % (4.7 )% Operating profit margin, non-GAAP 26.4
% 25.3 % 110
Table 8 Continued
Colgate-Palmolive Company Non-GAAP
Reconciliations For the Three Months Ended September
30, 2016 and 2015 (Dollars in Millions Except Per
Share Amounts) (Unaudited) 2016
Income BeforeIncome
Taxes
Provision ForIncome
Taxes(1)
Net
IncomeIncludingNoncontrollingInterests
Net
IncomeAttributableToColgate-PalmoliveCompany
EffectiveIncomeTax
Rate(2)
DilutedEarningsPer
Share(3)
As Reported GAAP $ 1,046 $ 300 $ 746 $ 702 28.7 % $ 0.78 2012
Restructuring Program 42 10 32 32 (0.2 )% 0.04 Gain on sale of land
in Mexico (97 ) (34 ) (63 ) (63 ) (0.6 )% (0.07 )
Benefits from previously disclosed
taxmatters
— 22 (22 ) (22 ) 2.2 % (0.02 )
Charge for a previously
disclosedlitigation matter
6 2 4 4 — %
— Non-GAAP
$
997
$
300
$
697
$
653
30.1 % $ 0.73
2015
Income BeforeIncome
Taxes
Provision ForIncome
Taxes(1)
Net
IncomeIncludingNoncontrollingInterests
Net
IncomeAttributableToColgate-PalmoliveCompany
EffectiveIncomeTax
Rate(2)
DilutedEarningsPer
Share(3)
As Reported GAAP $ 1,131 $ 361 $ 770 $ 726 31.9 % $ 0.80 2012
Restructuring Program 46 11 35 35 (0.3 )% 0.04 Venezuela
remeasurement charge 18 6 12 12 0.1 % 0.01
Gain on sale of South Pacific
laundrydetergent business
(187 ) (67 ) (120 ) (120 ) (0.8 )%
(0.13 ) Non-GAAP $ 1,008 $ 311 $ 697 $
653 30.9 % $ 0.72 Notes: (1) The income tax effect on
non-GAAP items is calculated based upon the tax laws and statutory
income tax rates applicable in the tax jurisdiction(s) of the
underlying non-GAAP adjustment. (2) The impact of non-GAAP
items on the Company’s effective tax rate represents the difference
in the effective tax rate calculated with and without the non-GAAP
adjustment on Income before income taxes and Provision for income
taxes. (3) The impact of non-GAAP adjustments on Diluted
earnings per share may not necessarily equal the difference between
“GAAP” and “non-GAAP” as a result of rounding.
Table 9
Colgate-Palmolive Company Non-GAAP
Reconciliations For the Nine Months Ended September
30, 2016 and 2015 (Dollars in Millions Except Per
Share Amounts) (Unaudited)
Gross Profit 2016 2015
Gross profit, GAAP $ 6,876 $ 7,106 2012 Restructuring Program
31 11 Gross profit, non-GAAP $ 6,907
$ 7,117
Basis Point Gross Profit
Margin 2016 2015 Change Gross profit
margin, GAAP 59.9 % 58.6 % 130 2012 Restructuring Program
0.3 % — % Gross profit margin, non-GAAP 60.2 %
58.6 % 160
Selling, General and
Administrative Expenses 2016 2015 Selling,
general and administrative expenses, GAAP $ 3,996 $ 4,178 2012
Restructuring Program (49 ) (44 ) Selling, general
and administrative expenses, non-GAAP $ 3,947 $ 4,134
Basis Point Selling, General and Administrative
Expenses as a Percentage of Net Sales 2016 2015
Change Selling, general and administrative expenses as a
percentage of Net sales, GAAP 34.8 % 34.4 % 40 2012 Restructuring
Program (0.4 )% (0.3 )% Selling, general and
administrative expenses as a percentage of Net sales, non-GAAP
34.4 % 34.1 % 30
Other
(Income) Expense, Net 2016 2015 Other (income)
expense, net, GAAP $ (2 ) $ — 2012 Restructuring Program (76 ) (143
) Gain on sale of land in Mexico 97 — Charge for a previously
disclosed litigation matter (6 ) — Venezuela remeasurement charges
— (34 ) Gain on sale of South Pacific laundry detergent business
— 187 Other (income) expense, net,
non-GAAP $ 13 $ 10
Operating
Profit 2016 2015 % Change Operating
profit, GAAP
$
2,882
$ 2,928 (2 )% 2012 Restructuring Program 156 198 Gain on sale of
land in Mexico (97 ) — Charge for a previously disclosed litigation
matter 6 — Venezuela remeasurement charges — 34 Gain on sale of
South Pacific laundry detergent business —
(187 ) Operating profit, non-GAAP $ 2,947 $ 2,973
(1 )%
Basis Point Operating Profit
Margin 2016 2015 Change Operating profit
margin, GAAP 25.1 % 24.1 % 100 2012 Restructuring Program 1.4 % 1.6
% Gain on sale of land in Mexico (0.8 )% — % Charge for a
previously disclosed litigation matter — % — % Venezuela
remeasurement charges — % 0.3 % Gain on sale of South Pacific
laundry detergent business — % (1.5 )%
Operating profit margin, non-GAAP 25.7 % 24.5 % 120
Table 9 Continued Colgate-Palmolive
Company Non-GAAP Reconciliations For
the Nine Months Ended September 30, 2016 and 2015
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2016
IncomeBeforeIncomeTaxes
ProvisionForIncomeTaxes(1)
Net
IncomeIncludingNoncontrollingInterests
Less: IncomeAttributable
toNoncontrollingInterests
Net
IncomeAttributableToColgate-PalmoliveCompany
EffectiveIncomeTax
Rate(2)
DilutedEarningsPer
Share(3)
As Reported GAAP $ 2,804 $ 846 $ 1,958 $ 123 $ 1,835 30.2 % $ 2.04
2012 Restructuring Program 156 41 115 1 114 (0.2 )% 0.13 Gain on
sale of land in Mexico (97 ) (34 ) (63 ) — (63 ) (0.2 )% (0.07 )
Benefits from previously disclosed
taxmatters
— 35 (35 ) — (35 ) 1.2 % (0.04 )
Charge for a previously
disclosedlitigation matter
6 2 4
—
4 — % — Non-GAAP $ 2,869 $ 890 $ 1,979
$ 124 $ 1,855 31.0 % $ 2.06
2015
IncomeBeforeIncomeTaxes
ProvisionForIncomeTaxes(1)
Net
IncomeIncludingNoncontrollingInterests
Less: IncomeAttributable
toNoncontrollingInterests
Net
IncomeAttributableToColgate-PalmoliveCompany
EffectiveIncomeTax
Rate(2)
DilutedEarningsPer
Share(3)
As Reported GAAP $ 2,909 $ 940 $ 1,969 $ 127 $ 1,842 32.3 % $ 2.02
2012 Restructuring Program 198 54 144 2 142 (0.3 )% 0.15 Venezuela
remeasurement charges 34 12 22 — 22 — 0.02 Charge for a foreign tax
matter — (15 ) 15 — 15 (0.5 )% 0.02
Gain on sale of South Pacific
laundrydetergent business
(187 ) (67 ) (120 )
—
(120 ) (0.2 )% (0.13 ) Non-GAAP $ 2,954 $ 924 $ 2,030
$ 129 $ 1,901 31.3 % $ 2.08 Notes: (1) The
income tax effect on non-GAAP items is calculated based upon the
tax laws and statutory income tax rates applicable in the tax
jurisdiction(s) of the underlying non-GAAP adjustment. (2)
The impact of non-GAAP items on the Company’s effective tax rate
represents the difference in the effective tax rate calculated with
and without the non-GAAP adjustment on Income before income taxes
and Provision for income taxes. (3) The impact of non-GAAP
adjustments on Diluted earnings per share may not necessarily equal
the difference between “GAAP” and “non-GAAP” as a result of
rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161027005349/en/
Colgate-Palmolive CompanyBina Thompson, 212-310-3072orJohn
Faucher, 212-310-3653orHope Spiller, 212-310-2291
Colgate Palmolive (NYSE:CL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Colgate Palmolive (NYSE:CL)
Historical Stock Chart
From Apr 2023 to Apr 2024