☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended March 31, 2019
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from________ to________ .
|
DELAWARE
|
13-1815595
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
300 Park Avenue, New York, New York
|
10022
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
☒
|
Accelerated filer
☐
|
Non-accelerated filer
☐
|
Smaller reporting company
☐
|
Emerging growth company
☐
|
Class
|
|
Shares Outstanding
|
|
Date
|
Common stock, $1.00 par value
|
|
858,514,915
|
|
March 31, 2019
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net sales
|
$
|
3,884
|
|
|
$
|
4,002
|
|
Cost of sales
|
1,597
|
|
|
1,594
|
|
||
Gross profit
|
2,287
|
|
|
2,408
|
|
||
Selling, general and administrative expenses
|
1,365
|
|
|
1,392
|
|
||
Other (income) expense, net
|
43
|
|
|
33
|
|
||
Operating profit
|
879
|
|
|
983
|
|
||
Non-service related postretirement costs
|
25
|
|
|
24
|
|
||
Interest (income) expense, net
|
40
|
|
|
35
|
|
||
Income before income taxes
|
814
|
|
|
924
|
|
||
Provision for income taxes
|
214
|
|
|
246
|
|
||
Net income including noncontrolling interests
|
600
|
|
|
678
|
|
||
Less: Net income attributable to noncontrolling interests
|
40
|
|
|
44
|
|
||
Net income attributable to Colgate-Palmolive Company
|
$
|
560
|
|
|
$
|
634
|
|
|
|
|
|
||||
Earnings per common share, basic
|
$
|
0.65
|
|
|
$
|
0.72
|
|
|
|
|
|
||||
Earnings per common share, diluted
|
$
|
0.65
|
|
|
$
|
0.72
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net income including noncontrolling interests
|
$
|
600
|
|
|
$
|
678
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Cumulative translation adjustments
|
26
|
|
|
108
|
|
||
Retirement plans and other retiree benefit adjustments
|
12
|
|
|
14
|
|
||
Gains (losses) on cash flow hedges
|
(5
|
)
|
|
(1
|
)
|
||
Total Other comprehensive income (loss), net of tax
|
33
|
|
|
121
|
|
||
Total Comprehensive income including noncontrolling interests
|
633
|
|
|
799
|
|
||
Less: Net income attributable to noncontrolling interests
|
40
|
|
|
44
|
|
||
Less: Cumulative translation adjustments attributable to noncontrolling interests
|
5
|
|
|
3
|
|
||
Total Comprehensive income attributable to noncontrolling interests
|
45
|
|
|
47
|
|
||
Total Comprehensive income attributable to Colgate-Palmolive Company
|
$
|
588
|
|
|
$
|
752
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
843
|
|
|
$
|
726
|
|
Receivables (net of allowances of $84 and $82, respectively)
|
1,547
|
|
|
1,400
|
|
||
Inventories
|
1,278
|
|
|
1,250
|
|
||
Other current assets
|
465
|
|
|
417
|
|
||
Total current assets
|
4,133
|
|
|
3,793
|
|
||
Property, plant and equipment:
|
|
|
|
|
|
||
Cost
|
8,398
|
|
|
8,336
|
|
||
Less: Accumulated depreciation
|
(4,577
|
)
|
|
(4,455
|
)
|
||
|
3,821
|
|
|
3,881
|
|
||
Goodwill
|
2,517
|
|
|
2,530
|
|
||
Other intangible assets, net
|
1,612
|
|
|
1,637
|
|
||
Deferred income taxes
|
164
|
|
|
152
|
|
||
Other assets
|
636
|
|
|
168
|
|
||
Total assets
|
$
|
12,883
|
|
|
$
|
12,161
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Notes and loans payable
|
$
|
5
|
|
|
$
|
12
|
|
Current portion of long-term debt
|
1
|
|
|
—
|
|
||
Accounts payable
|
1,215
|
|
|
1,222
|
|
||
Accrued income taxes
|
400
|
|
|
411
|
|
||
Other accruals
|
2,244
|
|
|
1,696
|
|
||
Total current liabilities
|
3,865
|
|
|
3,341
|
|
||
Long-term debt
|
6,655
|
|
|
6,354
|
|
||
Deferred income taxes
|
306
|
|
|
235
|
|
||
Other liabilities
|
2,267
|
|
|
2,034
|
|
||
Total liabilities
|
13,093
|
|
|
11,964
|
|
||
Shareholders’ Equity
|
|
|
|
|
|
||
Common stock
|
1,466
|
|
|
1,466
|
|
||
Additional paid-in capital
|
2,241
|
|
|
2,204
|
|
||
Retained earnings
|
21,436
|
|
|
21,615
|
|
||
Accumulated other comprehensive income (loss)
|
(4,160
|
)
|
|
(4,188
|
)
|
||
Unearned compensation
|
(3
|
)
|
|
(3
|
)
|
||
Treasury stock, at cost
|
(21,532
|
)
|
|
(21,196
|
)
|
||
Total Colgate-Palmolive Company shareholders’ equity
|
(552
|
)
|
|
(102
|
)
|
||
Noncontrolling interests
|
342
|
|
|
299
|
|
||
Total equity
|
(210
|
)
|
|
197
|
|
||
Total liabilities and equity
|
$
|
12,883
|
|
|
$
|
12,161
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net income including noncontrolling interests
|
$
|
600
|
|
|
$
|
678
|
|
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
|
|
|
|
|
|
||
Depreciation and amortization
|
128
|
|
|
129
|
|
||
Restructuring and termination benefits, net of cash
|
5
|
|
|
(25
|
)
|
||
Stock-based compensation expense
|
17
|
|
|
28
|
|
||
Deferred income taxes
|
53
|
|
|
13
|
|
||
Voluntary benefit plan contributions
|
(102
|
)
|
|
—
|
|
||
Cash effects of changes in:
|
|
|
|
||||
Receivables
|
(145
|
)
|
|
(211
|
)
|
||
Inventories
|
(32
|
)
|
|
(33
|
)
|
||
Accounts payable and other accruals
|
44
|
|
|
33
|
|
||
Other non-current assets and liabilities
|
37
|
|
|
4
|
|
||
Net cash provided by operations
|
605
|
|
|
616
|
|
||
Investing Activities
|
|
|
|
|
|
||
Capital expenditures
|
(71
|
)
|
|
(118
|
)
|
||
Purchases of marketable securities and investments
|
(27
|
)
|
|
(38
|
)
|
||
Payment for acquisitions, net of cash acquired
|
—
|
|
|
(727
|
)
|
||
Other
|
—
|
|
|
2
|
|
||
Net cash used in investing activities
|
(98
|
)
|
|
(881
|
)
|
||
Financing Activities
|
|
|
|
|
|
||
Principal payments on debt
|
(1,774
|
)
|
|
(2,079
|
)
|
||
Proceeds from issuance of debt
|
2,076
|
|
|
2,226
|
|
||
Dividends paid
|
(366
|
)
|
|
(352
|
)
|
||
Purchases of treasury shares
|
(399
|
)
|
|
(351
|
)
|
||
Proceeds from exercise of stock options
|
71
|
|
|
119
|
|
||
Net cash used in financing activities
|
(392
|
)
|
|
(437
|
)
|
||
Effect of exchange rate changes on Cash and cash equivalents
|
2
|
|
|
18
|
|
||
Net increase (decrease) in Cash and cash equivalents
|
117
|
|
|
(684
|
)
|
||
Cash and cash equivalents at beginning of the period
|
726
|
|
|
1,535
|
|
||
Cash and cash equivalents at end of the period
|
$
|
843
|
|
|
$
|
851
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
||
Income taxes paid
|
$
|
149
|
|
|
$
|
163
|
|
Three Months Ended March 31, 2019
|
|||||||||||||||||||||||||||
|
Colgate-Palmolive Company Shareholders’ Equity
|
|
Noncontrolling
Interests
|
||||||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Unearned
Compensation
|
|
Treasury
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
(1)
|
|
|
||||||||||||||
Balance, December 31, 2018
|
$
|
1,466
|
|
|
$
|
2,204
|
|
|
$
|
(3
|
)
|
|
$
|
(21,196
|
)
|
|
$
|
21,615
|
|
|
$
|
(4,188
|
)
|
|
$
|
299
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
560
|
|
|
|
|
40
|
|
||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
|
|
|
5
|
|
||||||||
Dividends ($0.85/per share)*
|
|
|
|
|
|
|
|
|
|
|
|
|
(734
|
)
|
|
|
|
|
(2
|
)
|
|||||||
Stock-based compensation expense
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shares issued for stock options
|
|
|
|
33
|
|
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shares issued for restricted stock units
|
|
|
(13
|
)
|
|
|
|
13
|
|
|
|
|
|
|
|
||||||||||||
Treasury stock acquired
|
|
|
|
|
|
|
|
|
|
(399
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Other
|
|
|
|
|
|
|
|
|
|
1
|
|
|
(5
|
)
|
|
|
|
|
|
|
|||||||
Balance, March 31, 2019
|
$
|
1,466
|
|
|
$
|
2,241
|
|
|
$
|
(3
|
)
|
|
$
|
(21,532
|
)
|
|
$
|
21,436
|
|
|
$
|
(4,160
|
)
|
|
$
|
342
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||||||||||||
|
Colgate-Palmolive Company Shareholders’ Equity
|
|
Noncontrolling
Interests
|
||||||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Unearned
Compensation
|
|
Treasury
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
(1)
|
|
|
||||||||||||||
Balance, December 31, 2017
|
$
|
1,466
|
|
|
$
|
1,984
|
|
|
$
|
(5
|
)
|
|
$
|
(20,181
|
)
|
|
$
|
20,531
|
|
|
$
|
(3,855
|
)
|
|
$
|
303
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
634
|
|
|
|
|
44
|
|
||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
118
|
|
|
3
|
|
||||||||
Dividends ($0.82/per share)*
|
|
|
|
|
|
|
|
|
|
|
|
|
(718
|
)
|
|
|
|
|
|
||||||||
Stock-based compensation expense
|
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shares issued for stock options
|
|
|
|
48
|
|
|
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|||||||
Shares issued for restricted stock units
|
|
|
(12
|
)
|
|
|
|
12
|
|
|
|
|
|
|
|
||||||||||||
Treasury stock acquired
|
|
|
|
|
|
|
|
|
|
(351
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Other
|
|
|
|
(1
|
)
|
|
3
|
|
|
2
|
|
|
134
|
|
|
(163
|
)
|
(2)
|
|
||||||||
Balance, March 31, 2018
|
$
|
1,466
|
|
|
$
|
2,047
|
|
|
$
|
(2
|
)
|
|
$
|
(20,441
|
)
|
|
$
|
20,581
|
|
|
$
|
(3,900
|
)
|
|
$
|
350
|
|
1
.
|
Basis of Presentation
|
2
.
|
Use of Estimates
|
3
.
|
Recent Accounting Pronouncements
|
4
.
|
Restructuring and Related Implementation Charges
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Cost of sales
|
$
|
11
|
|
|
$
|
6
|
|
Selling, general and administrative expenses
|
4
|
|
|
5
|
|
||
Other (income) expense, net
|
13
|
|
|
13
|
|
||
Non-service related postretirement costs
|
1
|
|
|
4
|
|
||
Total Global Growth and Efficiency Program charges, pretax
|
$
|
29
|
|
|
$
|
28
|
|
|
|
|
|
||||
Total Global Growth and Efficiency Program charges, aftertax
|
$
|
22
|
|
|
$
|
20
|
|
|
Three Months Ended
|
|
Program-to-date
|
|||||
|
March 31,
|
|
Accumulated Charges
|
|||||
|
2019
|
|
2018
|
|
|
|||
North America
|
8
|
%
|
|
37
|
%
|
|
18
|
%
|
Latin America
|
40
|
%
|
|
12
|
%
|
|
5
|
%
|
Europe
|
8
|
%
|
|
2
|
%
|
|
19
|
%
|
Asia Pacific
|
6
|
%
|
|
18
|
%
|
|
4
|
%
|
Africa/Eurasia
|
—
|
%
|
|
2
|
%
|
|
6
|
%
|
Hill
’
s Pet Nutrition
|
12
|
%
|
|
19
|
%
|
|
8
|
%
|
Corporate
|
26
|
%
|
|
10
|
%
|
|
40
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Cumulative Charges
|
||
|
as of March 31, 2019
|
||
Employee-Related Costs
|
$
|
691
|
|
Incremental Depreciation
|
97
|
|
|
Asset Impairments
|
58
|
|
|
Other
|
905
|
|
|
Total
|
$
|
1,751
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
Employee-Related
Costs |
|
Incremental
Depreciation |
|
Asset
Impairments |
|
Other
|
|
Total
|
||||||||||
Balance at December 31, 2018
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
202
|
|
Charges
|
|
10
|
|
|
5
|
|
|
6
|
|
|
8
|
|
|
29
|
|
|||||
Cash payments
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(24
|
)
|
|||||
Charges against assets
|
|
(1
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Foreign exchange
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
(48
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
94
|
|
|
$
|
146
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Raw materials and supplies
|
$
|
242
|
|
|
$
|
253
|
|
Work-in-process
|
43
|
|
|
37
|
|
||
Finished goods
|
993
|
|
|
960
|
|
||
Total Inventories
|
$
|
1,278
|
|
|
$
|
1,250
|
|
|
Three Months Ended
|
||||||||||||||||||||
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||||||||
|
Net income attributable to Colgate-Palmolive Company
|
|
Shares
(millions)
|
|
Per
Share
|
|
Net income attributable to Colgate-Palmolive Company
|
|
Shares
(millions)
|
|
Per
Share
|
||||||||||
Basic EPS
|
$
|
560
|
|
|
862.0
|
|
|
$
|
0.65
|
|
|
$
|
634
|
|
|
875.4
|
|
|
$
|
0.72
|
|
Stock options and
restricted stock units
|
|
|
1.2
|
|
|
|
|
|
|
|
|
4.5
|
|
|
|
|
|||||
Diluted EPS
|
$
|
560
|
|
|
863.2
|
|
|
$
|
0.65
|
|
|
$
|
634
|
|
|
879.9
|
|
|
$
|
0.72
|
|
7
.
|
Other Comprehensive Income (Loss)
|
|
|
2019
|
|
2018
|
||||||||||||
|
|
Pretax
|
|
Net of Tax
|
|
Pretax
|
|
Net of Tax
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustments
|
|
$
|
27
|
|
|
$
|
21
|
|
|
$
|
96
|
|
|
$
|
105
|
|
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)
|
|
17
|
|
|
13
|
|
|
18
|
|
|
14
|
|
||||
Retirement plans and other retiree benefits adjustments
|
|
16
|
|
|
12
|
|
|
18
|
|
|
14
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on cash flow hedges
|
|
(2
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
(6
|
)
|
||||
Reclassification of (gains) losses into net earnings on cash flow hedges
(2)
|
|
(4
|
)
|
|
(3
|
)
|
|
6
|
|
|
5
|
|
||||
Gains (losses) on cash flow hedges
|
|
(6
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(1
|
)
|
||||
Total Other comprehensive income (loss)
|
|
$
|
37
|
|
|
$
|
28
|
|
|
$
|
112
|
|
|
$
|
118
|
|
8
.
|
Retirement Plans and Other Retiree Benefits
|
|
Pension Benefits
|
|
Other Retiree Benefits
|
||||||||||||||||||||
|
United States
|
|
International
|
|
|
|
|
||||||||||||||||
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Interest cost
|
23
|
|
|
21
|
|
|
5
|
|
|
6
|
|
|
11
|
|
|
10
|
|
||||||
Expected return on plan assets
|
(26
|
)
|
|
(29
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
—
|
|
||||||
Amortization of actuarial loss (gain)
|
13
|
|
|
12
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
4
|
|
||||||
Net periodic benefit cost
|
$
|
10
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
16
|
|
|
$
|
18
|
|
9
.
|
Income Taxes
|
10
.
|
Contingencies
|
▪
|
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 indemnified for these fines by Unilever pursuant to the Sale and Purchase Agreement. The fines were confirmed by the Court of Appeal in October 2016. The Company appealed the decision of the Court of Appeal on behalf of the Company and Sara Lee in the French Supreme Court. In March 2019, the French Supreme Court denied the Company’s appeal.
|
▪
|
In July 2014, the Greek competition law authority issued a statement of objections alleging a restriction of parallel imports into Greece. The Company responded to this statement of objections. In July 2017, the Company received the decision from the Greek competition law authority in which the Company was fined
$11
. The Company is appealing the decision to the Greek courts.
|
11
.
|
Segment Information
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net sales
|
|
|
|
||||
Oral, Personal and Home Care
|
|
|
|
||||
North America
|
$
|
853
|
|
|
$
|
827
|
|
Latin America
|
889
|
|
|
929
|
|
||
Europe
|
602
|
|
|
648
|
|
||
Asia Pacific
|
700
|
|
|
759
|
|
||
Africa/Eurasia
|
240
|
|
|
255
|
|
||
Total Oral, Personal and Home Care
|
3,284
|
|
|
3,418
|
|
||
Pet Nutrition
|
600
|
|
|
584
|
|
||
Total Net sales
|
$
|
3,884
|
|
|
$
|
4,002
|
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
|
2019
|
|
2018
|
||
Net sales
|
|
|
|
||
Oral Care
|
48
|
%
|
|
49
|
%
|
Personal Care
|
19
|
%
|
|
19
|
%
|
Home Care
|
18
|
%
|
|
17
|
%
|
Pet Nutrition
|
15
|
%
|
|
15
|
%
|
Total Net sales
|
100
|
%
|
|
100
|
%
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating profit
|
|
|
|
||||
Oral, Personal and Home Care
|
|
|
|
||||
North America
|
$
|
249
|
|
|
$
|
257
|
|
Latin America
|
232
|
|
|
273
|
|
||
Europe
|
151
|
|
|
162
|
|
||
Asia Pacific
|
189
|
|
|
226
|
|
||
Africa/Eurasia
|
46
|
|
|
50
|
|
||
Total Oral, Personal and Home Care
|
867
|
|
|
968
|
|
||
Pet Nutrition
|
164
|
|
|
164
|
|
||
Corporate
|
(152
|
)
|
|
(149
|
)
|
||
Total Operating profit
|
$
|
879
|
|
|
$
|
983
|
|
12
.
|
Fair Value Measurements and Financial Instruments
|
|
Assets
|
|
Liabilities
|
||||||||||||||||
|
Account
|
|
Fair Value
|
|
Account
|
|
Fair Value
|
||||||||||||
Designated derivative instruments
|
|
|
3/31/19
|
|
12/31/18
|
|
|
|
3/31/19
|
|
12/31/18
|
||||||||
Interest rate swap contracts
|
Other current assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Other accruals
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest rate swap contracts
|
Other assets
|
|
—
|
|
|
—
|
|
|
Other liabilities
|
|
4
|
|
|
8
|
|
||||
Foreign currency contracts
|
Other current assets
|
|
14
|
|
|
20
|
|
|
Other accruals
|
|
13
|
|
|
8
|
|
||||
Foreign currency contracts
|
Other assets
|
|
—
|
|
|
—
|
|
|
Other liabilities
|
|
15
|
|
|
21
|
|
||||
Commodity contracts
|
Other current assets
|
|
—
|
|
|
—
|
|
|
Other accruals
|
|
1
|
|
|
—
|
|
||||
Total designated
|
|
$
|
14
|
|
|
$
|
20
|
|
|
|
|
$
|
33
|
|
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marketable securities
|
Other current assets
|
|
$
|
37
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
||
Total other financial instruments
|
|
|
$
|
37
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Long-term debt:
|
|
|
|
||||
Carrying amount of hedged item
|
$
|
394
|
|
|
$
|
888
|
|
Cumulative hedging adjustment included in the carrying amount
|
4
|
|
|
10
|
|
|
March 31, 2019
|
||||||||||||||||||
|
Foreign
Currency
Contracts
|
|
Foreign Currency Debt
|
|
Interest Rate Swaps
|
|
Commodity Contracts
|
|
Total
|
||||||||||
Fair Value Hedges
|
$
|
708
|
|
|
$
|
—
|
|
|
$
|
400
|
|
|
$
|
—
|
|
|
$
|
1,108
|
|
Cash Flow Hedges
|
791
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
803
|
|
|||||
Net Investment Hedges
|
490
|
|
|
2,212
|
|
|
—
|
|
|
—
|
|
|
2,702
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Foreign
Currency
Contracts
|
|
Foreign Currency Debt
|
|
Interest Rate Swaps
|
|
Commodity Contracts
|
|
Total
|
||||||||||
Fair Value Hedges
|
$
|
327
|
|
|
$
|
—
|
|
|
$
|
900
|
|
|
$
|
—
|
|
|
$
|
1,227
|
|
Cash Flow Hedges
|
782
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
796
|
|
|||||
Net Investment Hedges
|
482
|
|
|
1,396
|
|
|
—
|
|
|
—
|
|
|
1,878
|
|
|
Three Months Ended
March 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
Cost of sales
|
|
Selling, general and administrative expenses
|
|
Interest (income) expense, net
|
|
Cost of sales
|
|
Selling, general and administrative expenses
|
|
Interest (income) expense, net
|
||||||||||||
Gain (loss) on hedges recognized in income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps designated as fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instrument
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
Hedged items
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||
Foreign currency contracts designated as fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative instrument
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
||||||
Hedged items
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||
Foreign currency contracts designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount reclassified from OCI
|
3
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||||
Commodity contracts designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount reclassified from OCI
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total gain (loss) on hedges recognized in income
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended
|
||||||
March 31,
|
|||||||
2019
|
|
2018
|
|||||
Foreign currency contracts designated as cash flow hedges:
|
|
|
|
||||
Gain (loss) recognized in OCI
|
$
|
(3
|
)
|
|
$
|
(8
|
)
|
Commodity contracts designated as cash flow hedges:
|
|
|
|
||||
Gain (loss) recognized in OCI
|
1
|
|
|
—
|
|
||
Foreign currency contracts designated as net investment hedges:
|
|
|
|
||||
Gain (loss) on instruments
|
6
|
|
|
(18
|
)
|
||
Gain (loss) on hedged items
|
(6
|
)
|
|
18
|
|
||
Foreign currency debt designated as net investment hedges:
|
|
|
|
||||
Gain (loss) on instruments
|
29
|
|
|
(19
|
)
|
||
Gain (loss) on hedged items
|
(29
|
)
|
|
19
|
|
||
Total unrealized gain (loss) on hedges recognized in other comprehensive income (OCI)
|
$
|
(2
|
)
|
|
$
|
(8
|
)
|
Other assets
|
$
|
422
|
|
|
|
||
Other accruals
|
$
|
161
|
|
Other liabilities
|
369
|
|
|
Total operating lease liabilities
|
$
|
530
|
|
Years Ending December 31,
|
As of
March 31, 2019
|
|
As of
December 31, 2018
|
||||
2019
|
$
|
137
|
|
*
|
$
|
193
|
|
2020
|
154
|
|
|
165
|
|
||
2021
|
119
|
|
|
123
|
|
||
2022
|
97
|
|
|
102
|
|
||
2023
|
45
|
|
|
51
|
|
||
Thereafter
|
21
|
|
|
32
|
|
||
Total lease commitments
|
$
|
573
|
|
|
$
|
666
|
|
Less: Interest
|
(43
|
)
|
|
|
|||
Present value of lease liabilities
|
$
|
530
|
|
|
|
Operating lease cost
|
$
|
45
|
|
Short-term lease cost
|
2
|
|
|
Variable lease cost
|
10
|
|
|
Sublease income
|
—
|
|
|
Total lease cost
|
$
|
57
|
|
▪
|
Payments against amounts included in the measurement of lease liabilities:
$57
|
▪
|
Lease assets obtained in exchange for lease liabilities:
$22
|
▪
|
Expanding Commercial Hubs
|
▪
|
Extending Shared Business Services and Streamlining Global Functions
|
▪
|
Optimizing Global Supply Chain and Facilities
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Gross profit, GAAP
|
|
$
|
2,287
|
|
|
$
|
2,408
|
|
Global Growth and Efficiency Program
|
|
11
|
|
|
6
|
|
||
Gross profit, non-GAAP
|
|
$
|
2,298
|
|
|
$
|
2,414
|
|
|
|
Three Months Ended March 31,
|
|||||||
|
|
2019
|
|
2018
|
|
Basis Point Change
|
|||
Gross profit margin, GAAP
|
|
58.9
|
%
|
|
60.2
|
%
|
|
(130
|
)
|
Global Growth and Efficiency Program
|
|
0.3
|
|
|
0.1
|
|
|
|
|
Gross profit margin, non-GAAP
|
|
59.2
|
%
|
|
60.3
|
%
|
|
(110
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Selling, general and administrative expenses, GAAP
|
|
$
|
1,365
|
|
|
$
|
1,392
|
|
Global Growth and Efficiency Program
|
|
(4
|
)
|
|
(5
|
)
|
||
Selling, general and administrative expenses, non-GAAP
|
|
$
|
1,361
|
|
|
$
|
1,387
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
|
Basis Point Change
|
||
Selling, general and administrative expenses as a percentage of Net sales, GAAP
|
|
35.1
|
%
|
|
34.8
|
%
|
|
30
|
Global Growth and Efficiency Program
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
|
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP
|
|
35.0
|
%
|
|
34.7
|
%
|
|
30
|
|
|
Three Months Ended March 31,
|
|||||||||
|
|
2019
|
|
2018
|
|
% Change
|
|||||
Operating profit, GAAP
|
|
$
|
879
|
|
|
$
|
983
|
|
|
(11
|
)%
|
Global Growth and Efficiency Program
|
|
28
|
|
|
24
|
|
|
|
|||
Operating profit, non-GAAP
|
|
$
|
907
|
|
|
$
|
1,007
|
|
|
(10
|
)%
|
|
|
Three Months Ended March 31,
|
|||||||
|
|
2019
|
|
2018
|
|
Basis Point Change
|
|||
Operating profit margin, GAAP
|
|
22.6
|
%
|
|
24.6
|
%
|
|
(200
|
)
|
Global Growth and Efficiency Program
|
|
0.8
|
|
|
0.6
|
|
|
|
|
Operating profit margin, non-GAAP
|
|
23.4
|
%
|
|
25.2
|
%
|
|
(180
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Non-service related postretirement costs, GAAP
|
|
$
|
25
|
|
|
$
|
24
|
|
Global Growth and Efficiency Program
|
|
(1
|
)
|
|
(4
|
)
|
||
Non-service related postretirement costs, non-GAAP
|
|
$
|
24
|
|
|
$
|
20
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Income Before Income Taxes
|
|
Provision For Income Taxes
(1)
|
|
Effective Income Tax Rate
(2)
|
|
Income Before Income Taxes
|
|
Provision For Income Taxes
(1)
|
|
Effective Income Tax Rate
(2)
|
||||||||||
As Reported GAAP
|
|
$
|
814
|
|
|
$
|
214
|
|
|
26.3
|
%
|
|
$
|
924
|
|
|
$
|
246
|
|
|
26.6
|
%
|
Global Growth and Efficiency Program
|
|
29
|
|
|
7
|
|
|
(0.1
|
)
|
|
28
|
|
|
8
|
|
|
0.1
|
|
||||
Non-GAAP
|
|
$
|
843
|
|
|
$
|
221
|
|
|
26.2
|
%
|
|
$
|
952
|
|
|
$
|
254
|
|
|
26.7
|
%
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Income Before Income Taxes
|
|
Provision For Income Taxes
(1)
|
|
Net Income Including Noncontrolling Interests
|
|
Net Income Attributable To Colgate-Palmolive Company
|
|
Diluted Earnings Per Share
(2)
|
||||||||||
As Reported GAAP
|
$
|
814
|
|
|
$
|
214
|
|
|
$
|
600
|
|
|
$
|
560
|
|
|
$
|
0.65
|
|
Global Growth and Efficiency Program
|
29
|
|
|
7
|
|
|
22
|
|
|
22
|
|
|
0.02
|
|
|||||
Non-GAAP
|
$
|
843
|
|
|
$
|
221
|
|
|
$
|
622
|
|
|
$
|
582
|
|
|
$
|
0.67
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
Income Before Income Taxes
|
|
Provision For Income Taxes
(1)
|
|
Net Income Including Noncontrolling Interests
|
|
Net Income Attributable To Colgate-Palmolive Company
|
|
Diluted Earnings Per Share
(2)
|
||||||||||
As Reported GAAP
|
$
|
924
|
|
|
$
|
246
|
|
|
$
|
678
|
|
|
$
|
634
|
|
|
$
|
0.72
|
|
Global Growth and Efficiency Program
|
28
|
|
|
8
|
|
|
20
|
|
|
20
|
|
|
0.02
|
|
|||||
Non-GAAP
|
$
|
952
|
|
|
$
|
254
|
|
|
$
|
698
|
|
|
$
|
654
|
|
|
$
|
0.74
|
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
853
|
|
|
$
|
827
|
|
|
3.0
|
|
%
|
Operating profit
|
$
|
249
|
|
|
$
|
257
|
|
|
(3
|
)
|
%
|
% of Net sales
|
29.2
|
%
|
|
31.1
|
%
|
|
(190
|
)
|
bps
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
889
|
|
|
$
|
929
|
|
|
(4.5
|
)
|
%
|
Operating profit
|
$
|
232
|
|
|
$
|
273
|
|
|
(15
|
)
|
%
|
% of Net sales
|
26.1
|
%
|
|
29.4
|
%
|
|
(330
|
)
|
bps
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
602
|
|
|
$
|
648
|
|
|
(7.0
|
)
|
%
|
Operating profit
|
$
|
151
|
|
|
$
|
162
|
|
|
(7
|
)
|
%
|
% of Net sales
|
25.1
|
%
|
|
25.0
|
%
|
|
10
|
|
bps
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
700
|
|
|
$
|
759
|
|
|
(8.0
|
)
|
%
|
Operating profit
|
$
|
189
|
|
|
$
|
226
|
|
|
(16
|
)
|
%
|
% of Net sales
|
27.0
|
%
|
|
29.8
|
%
|
|
(280
|
)
|
bps
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
240
|
|
|
$
|
255
|
|
|
(6.0
|
)
|
%
|
Operating profit
|
$
|
46
|
|
|
$
|
50
|
|
|
(8
|
)
|
%
|
% of Net sales
|
19.2
|
%
|
|
19.6
|
%
|
|
(40
|
)
|
bps
|
|
Three Months Ended March 31,
|
||||||||||
|
2019
|
|
2018
|
|
Change
|
||||||
Net sales
|
$
|
600
|
|
|
$
|
584
|
|
|
3.0
|
|
%
|
Operating profit
|
$
|
164
|
|
|
$
|
164
|
|
|
—
|
|
%
|
% of Net sales
|
27.3
|
%
|
|
28.1
|
%
|
|
(80
|
)
|
bps
|
|
Three Months Ended March 31,
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|
||||
Operating profit (loss)
|
$
|
(152
|
)
|
|
$
|
(149
|
)
|
|
2
|
%
|
▪
|
Becoming even stronger on the ground through the continued evolution and expansion of proven global and regional commercial capabilities.
|
▪
|
Simplifying and standardizing how work gets done by increasing technology-enabled collaboration and taking advantage of global data and analytic capabilities, leading to smarter and faster decisions.
|
▪
|
Reducing structural costs to continue to increase the Company’s gross and operating profit.
|
▪
|
Building on Colgate’s current position of strength to enhance its leading market share positions worldwide and ensure sustained sales and earnings growth.
|
▪
|
Expanding Commercial Hubs – Building on the success of the hub structure implemented around the world, streamlining operations in order to drive smarter and faster decision-making, strengthen capabilities available on the ground and improve cost structure.
|
▪
|
Extending Shared Business Services and Streamlining Global Functions – Optimizing the Company
’
s shared service organizational model in all regions of the world and continuing to streamline global functions to improve cost structure.
|
▪
|
Optimizing Global Supply Chain and Facilities – Continuing to optimize manufacturing efficiencies, global warehouse networks and office locations for greater efficiency, lower cost and speed to bring innovation to market.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2019
|
|
2018
|
||||
Cost of sales
|
$
|
11
|
|
|
$
|
6
|
|
Selling, general and administrative expenses
|
4
|
|
|
5
|
|
||
Other (income) expense, net
|
13
|
|
|
13
|
|
||
Non-service related postretirement costs
|
1
|
|
|
4
|
|
||
Total Global Growth and Efficiency Program charges, pretax
|
$
|
29
|
|
|
$
|
28
|
|
|
|
|
|
||||
Total Global Growth and Efficiency Program charges, aftertax
|
$
|
22
|
|
|
$
|
20
|
|
|
Three Months Ended
|
|
Program-to-date
|
|||||
|
March 31,
|
|
Accumulated Charges
|
|||||
|
2019
|
|
2018
|
|
|
|||
North America
|
8
|
%
|
|
37
|
%
|
|
18
|
%
|
Latin America
|
40
|
%
|
|
12
|
%
|
|
5
|
%
|
Europe
|
8
|
%
|
|
2
|
%
|
|
19
|
%
|
Asia Pacific
|
6
|
%
|
|
18
|
%
|
|
4
|
%
|
Africa/Eurasia
|
—
|
%
|
|
2
|
%
|
|
6
|
%
|
Hill
’
s Pet Nutrition
|
12
|
%
|
|
19
|
%
|
|
8
|
%
|
Corporate
|
26
|
%
|
|
10
|
%
|
|
40
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Cumulative Charges
|
||
|
as of March 31, 2019
|
||
Employee-Related Costs
|
$
|
691
|
|
Incremental Depreciation
|
97
|
|
|
Asset Impairments
|
58
|
|
|
Other
|
905
|
|
|
Total
|
$
|
1,751
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
Employee-Related
Costs |
|
Incremental
Depreciation |
|
Asset
Impairments |
|
Other
|
|
Total
|
||||||||||
Balance at December 31, 2018
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
202
|
|
Charges
|
|
10
|
|
|
5
|
|
|
6
|
|
|
8
|
|
|
29
|
|
|||||
Cash payments
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(24
|
)
|
|||||
Charges against assets
|
|
(1
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Foreign exchange
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
(48
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
94
|
|
|
$
|
146
|
|
Three Months Ended March 31, 2019
|
Net Sales Growth
(GAAP)
|
Foreign
Exchange
Impact
|
Acquisitions and Divestments
Impact
|
Organic
Sales Growth
(Non-GAAP)
|
Oral, Personal and Home Care
|
|
|
|
|
North America
|
3.0%
|
(0.5)%
|
—%
|
3.5%
|
Latin America
|
(4.5)%
|
(10.5)%
|
—%
|
6.0%
|
Europe
|
(7.0)%
|
(7.5)%
|
—%
|
0.5%
|
Asia Pacific
|
(8.0)%
|
(5.5)%
|
—%
|
(2.5)%
|
Africa/Eurasia
|
(6.0)%
|
(13.0)%
|
—%
|
7.0%
|
Total Oral, Personal and Home Care
|
(4.0)%
|
(6.5)%
|
—%
|
2.5%
|
Pet Nutrition
|
3.0%
|
(3.0)%
|
—%
|
6.0%
|
Total Company
|
(3.0)%
|
(6.0)%
|
—%
|
3.0%
|
Month
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(2)
|
|
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
(3)
(in millions)
|
||||||
January 1 through 31, 2019
|
|
1,388,756
|
|
|
$
|
61.78
|
|
|
1,333,935
|
|
|
$
|
4,344
|
|
February 1 through 28, 2019
|
|
2,161,743
|
|
|
$
|
65.96
|
|
|
2,001,000
|
|
|
$
|
4,212
|
|
March 1 through 31, 2019
|
|
2,547,228
|
|
|
$
|
66.08
|
|
|
2,500,378
|
|
|
$
|
4,047
|
|
Total
|
|
6,097,727
|
|
|
$
|
65.06
|
|
|
5,835,313
|
|
|
|
|
Exhibit No.
|
|
Description
|
10
|
|
|
|
|
|
31-A
|
|
|
|
|
|
31-B
|
|
|
|
|
|
32
|
|
|
|
|
|
101
|
|
The following materials from Colgate-Palmolive Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2019, formatted in eXtensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Changes in Shareholders’ Equity and (vi) Notes to Condensed Consolidated Financial Statements.
|
|
COLGATE-PALMOLIVE COMPANY
|
|
(Registrant)
|
|
|
|
Principal Executive Officer:
|
|
|
April 26, 2019
|
/s/ Noel R. Wallace
|
|
Noel R. Wallace
|
|
President and
Chief Executive Officer
|
|
|
|
Principal Financial Officer:
|
|
|
April 26, 2019
|
/s/ Henning I. Jakobsen
|
|
Henning I. Jakobsen
|
|
Chief Financial Officer
|
|
|
|
Principal Accounting Officer:
|
|
|
April 26, 2019
|
/s/ Philip G. Shotts
|
|
Philip G. Shotts
|
|
Vice President and Controller
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Colgate-Palmolive Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Noel R. Wallace
|
Noel R. Wallace
|
President and
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Colgate-Palmolive Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Henning I. Jakobsen
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Henning I. Jakobsen
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Chief Financial Officer
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(1)
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the Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2019
(the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
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(2)
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information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Colgate-Palmolive Company.
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/s/ Noel R. Wallace
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Noel R. Wallace
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President and
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Chief Executive Officer
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/s/ Henning I. Jakobsen
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Henning I. Jakobsen
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Chief Financial Officer
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