x | True | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | False | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | OH | 1-434 | 31-0411980 | ||||||||||||||||||||
(State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | |||||||||||||||||||||
One Procter & Gamble Plaza | Cincinnati | OH | |||||||||||||||||||||
One Procter & Gamble Plaza, Cincinnati, Ohio | 45202 | ||||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, without Par Value | PG | NYSE | ||||||
4.125% EUR notes due December 2020 | PG20A | NYSE | ||||||
2.000% Notes due 2021 | PG21 | NYSE | ||||||
2.000% Notes due 2022 | PG22B | NYSE | ||||||
1.125% Notes due 2023 | PG23A | NYSE | ||||||
0.500% Notes due 2024 | PG24A | NYSE | ||||||
0.625% Notes due 2024 | PG24B | NYSE | ||||||
1.375% Notes due 2025 | PG25 | NYSE | ||||||
4.875% EUR notes due May 2027 | PG27A | NYSE | ||||||
1.200% Notes due 2028 | PG28 | NYSE | ||||||
1.250% Notes due 2029 | PG29B | NYSE | ||||||
1.800% Notes due 2029 | PG29A | NYSE | ||||||
6.250% GBP notes due January 2030 | PG30 | NYSE | ||||||
5.250% GBP notes due January 2033 | PG33 | NYSE | ||||||
1.875% Notes due 2038 | PG38 | NYSE |
Large accelerated filer
|
þ
|
Accelerated filer |
¨
|
||||||||||||||||||||
Non-accelerated filer |
¨
|
Smaller reporting company |
¨
|
False | |||||||||||||||||||
Emerging growth company |
¨
|
False |
Item 1. | Financial Statements |
Three Months Ended September 30 | |||||||||||||||||||||||||||||
Amounts in millions except per share amounts | 2020 | 2019 | |||||||||||||||||||||||||||
NET SALES | $ | 19,318 | $ | 17,798 | |||||||||||||||||||||||||
Cost of products sold | 9,142 | 8,723 | |||||||||||||||||||||||||||
Selling, general and administrative expense | 4,895 | 4,785 | |||||||||||||||||||||||||||
OPERATING INCOME | 5,281 | 4,290 | |||||||||||||||||||||||||||
Interest expense | (136) | (108) | |||||||||||||||||||||||||||
Interest income | 10 | 58 | |||||||||||||||||||||||||||
Other non-operating income, net | 142 | 103 | |||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 5,297 | 4,343 | |||||||||||||||||||||||||||
Income taxes | 989 | 726 | |||||||||||||||||||||||||||
NET EARNINGS | 4,308 | 3,617 | |||||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | 31 | 24 | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 4,277 | $ | 3,593 | |||||||||||||||||||||||||
NET EARNINGS PER SHARE (1)
|
|||||||||||||||||||||||||||||
Basic | $ | 1.69 | $ | 1.41 | |||||||||||||||||||||||||
Diluted | $ | 1.63 | $ | 1.36 | |||||||||||||||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 2,625.3 | 2,647.5 |
Three Months Ended September 30 | |||||||||||||||||||||||||||||
Amounts in millions | 2020 | 2019 | |||||||||||||||||||||||||||
NET EARNINGS | $ | 4,308 | $ | 3,617 | |||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||||||||||||||||||||||||||||
Foreign currency translation | 352 | (540) | |||||||||||||||||||||||||||
Unrealized gains/(losses) on investment securities | 6 | (5) | |||||||||||||||||||||||||||
Unrealized gains/(losses) on defined benefit retirement plans | (69) | 179 | |||||||||||||||||||||||||||
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | 289 | (366) | |||||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME | 4,597 | 3,251 | |||||||||||||||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | 36 | 20 | |||||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 4,561 | $ | 3,231 |
Amounts in millions | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 13,392 | $ | 16,181 | ||||||||||||||||||||||
Accounts receivable | 5,043 | 4,178 | ||||||||||||||||||||||||
INVENTORIES | ||||||||||||||||||||||||||
Materials and supplies | 1,424 | 1,414 | ||||||||||||||||||||||||
Work in process | 678 | 674 | ||||||||||||||||||||||||
Finished goods | 3,605 | 3,410 | ||||||||||||||||||||||||
Total inventories | 5,707 | 5,498 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 1,884 | 2,130 | ||||||||||||||||||||||||
TOTAL CURRENT ASSETS | 26,026 | 27,987 | ||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 20,876 | 20,692 | ||||||||||||||||||||||||
GOODWILL | 40,569 | 39,901 | ||||||||||||||||||||||||
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET | 23,814 | 23,792 | ||||||||||||||||||||||||
OTHER NONCURRENT ASSETS | 8,614 | 8,328 | ||||||||||||||||||||||||
TOTAL ASSETS | $ | 119,899 | $ | 120,700 | ||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||
Accounts payable | $ | 11,935 | $ | 12,071 | ||||||||||||||||||||||
Accrued and other liabilities | 10,366 | 9,722 | ||||||||||||||||||||||||
Debt due within one year | 7,707 | 11,183 | ||||||||||||||||||||||||
TOTAL CURRENT LIABILITIES | 30,008 | 32,976 | ||||||||||||||||||||||||
LONG-TERM DEBT | 23,948 | 23,537 | ||||||||||||||||||||||||
DEFERRED INCOME TAXES | 6,294 | 6,199 | ||||||||||||||||||||||||
OTHER NONCURRENT LIABILITIES | 11,073 | 11,110 | ||||||||||||||||||||||||
TOTAL LIABILITIES | 71,323 | 73,822 | ||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
Preferred stock | 888 | 897 | ||||||||||||||||||||||||
Common stock – shares issued – | September 2020 | 4,009.2 | ||||||||||||||||||||||||
June 2020 | 4,009.2 | 4,009 | 4,009 | |||||||||||||||||||||||
Additional paid-in capital | 64,467 | 64,194 | ||||||||||||||||||||||||
Reserve for ESOP debt retirement | (1,046) | (1,080) | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (15,881) | (16,165) | ||||||||||||||||||||||||
Treasury stock | (106,794) | (105,573) | ||||||||||||||||||||||||
Retained earnings | 102,539 | 100,239 | ||||||||||||||||||||||||
Noncontrolling interest | 394 | 357 | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 48,576 | 46,878 | ||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 119,899 | $ | 120,700 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in millions;
shares in thousands |
Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement |
Accumu-lated
Other Comp-rehensive Income/(Loss) |
Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE
JUNE 30, 2020 |
2,479,746 | $4,009 | $897 | $64,194 | ($1,080) | ($16,165) | ($105,573) | $100,239 | $357 | $46,878 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 4,277 | 31 | 4,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | 284 | 5 | 289 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents ($0.7907 per share):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | (1,969) | (1,969) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred, net of tax benefits | (66) | (66) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (14,642) | (2,000) | (2,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock plans | 13,504 | 271 | 772 | 1,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions | 998 | (9) | 2 | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP debt impacts | 34 | 58 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest, net | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE
SEPTEMBER 30, 2020 |
2,479,606 | $4,009 | $888 | $64,467 | ($1,046) | ($15,881) | ($106,794) | $102,539 | $394 | $48,576 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in millions;
shares in thousands |
Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement |
Accumu-lated
Other Comp-rehensive Income/(Loss) |
Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE
JUNE 30, 2019 |
2,504,751 | $4,009 | $928 | $63,827 | ($1,146) | ($14,936) | ($100,406) | $94,918 | $385 | $47,579 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 3,593 | 24 | 3,617 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (362) | (4) | (366) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and dividend equivalents
($0.7459 per share):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | (1,874) | (1,874) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred, net of tax benefits | (65) | (65) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | (25,405) | (3,000) | (3,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock plans | 13,050 | 120 | 885 | 1,005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions | 1,416 | (13) | 2 | 11 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESOP debt impacts | 34 | 53 | 87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest, net | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE
SEPTEMBER 30, 2019 |
2,493,812 | $4,009 | $915 | $63,949 | ($1,112) | ($15,298) | ($102,510) | $96,625 | $406 | $46,984 |
Three Months Ended September 30 | |||||||||||||||||
Amounts in millions | 2020 | 2019 | |||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 16,181 | $ | 4,239 | |||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net earnings | 4,308 | 3,617 | |||||||||||||||
Depreciation and amortization | 671 | 723 | |||||||||||||||
Share-based compensation expense | 89 | 110 | |||||||||||||||
Deferred income taxes | 193 | (586) | |||||||||||||||
Gain on sale of assets | (12) | (2) | |||||||||||||||
Changes in: | |||||||||||||||||
Accounts receivable | (825) | (261) | |||||||||||||||
Inventories | (137) | (549) | |||||||||||||||
Accounts payable, accrued and other liabilities | 442 | 1,151 | |||||||||||||||
Other operating assets and liabilities | (30) | (35) | |||||||||||||||
Other | 40 | 1 | |||||||||||||||
TOTAL OPERATING ACTIVITIES | 4,739 | 4,169 | |||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Capital expenditures | (850) | (1,079) | |||||||||||||||
Proceeds from asset sales | 21 | 6 | |||||||||||||||
Proceeds from sales and maturities of investment securities | — | 6,151 | |||||||||||||||
Change in other investments | — | 1 | |||||||||||||||
TOTAL INVESTING ACTIVITIES | (829) | 5,079 | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Dividends to shareholders | (2,030) | (1,932) | |||||||||||||||
Reductions in short-term debt | (3,568) | (61) | |||||||||||||||
Reductions to long-term debt | (25) | — | |||||||||||||||
Treasury stock purchases | (2,000) | (3,000) | |||||||||||||||
Impact of stock options and other | 893 | 875 | |||||||||||||||
TOTAL FINANCING ACTIVITIES | (6,730) | (4,118) | |||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 31 | (65) | |||||||||||||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (2,789) | 5,065 | |||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 13,392 | $ | 9,304 |
% of Net sales by operating segment (1)
|
|||||||||||||||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Fabric Care | 22% | 23% | |||||||||||||||||||||||||||
Home Care | 12% | 10% | |||||||||||||||||||||||||||
Baby Care | 10% | 11% | |||||||||||||||||||||||||||
Hair Care | 10% | 10% | |||||||||||||||||||||||||||
Skin and Personal Care | 10% | 10% | |||||||||||||||||||||||||||
Family Care | 9% | 9% | |||||||||||||||||||||||||||
Oral Care | 8% | 7% | |||||||||||||||||||||||||||
Shave Care | 6% | 7% | |||||||||||||||||||||||||||
Feminine Care | 6% | 6% | |||||||||||||||||||||||||||
Personal Health Care | 5% | 5% | |||||||||||||||||||||||||||
Other | 2% | 2% | |||||||||||||||||||||||||||
Total | 100% | 100% |
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | Earnings/(Loss) Before Income Taxes | Net Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
Beauty | 2020 | $ | 3,786 | $ | 1,228 | $ | 976 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 3,552 | 1,092 | 874 | |||||||||||||||||||||||||||||||||||||||||||||||
Grooming | 2020 | 1,601 | 426 | 355 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 1,531 | 426 | 353 | |||||||||||||||||||||||||||||||||||||||||||||||
Health Care | 2020 | 2,471 | 679 | 525 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2,221 | 540 | 401 | |||||||||||||||||||||||||||||||||||||||||||||||
Fabric & Home Care | 2020 | 6,644 | 1,743 | 1,349 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 5,832 | 1,338 | 1,028 | |||||||||||||||||||||||||||||||||||||||||||||||
Baby, Feminine & Family Care | 2020 | 4,723 | 1,318 | 1,010 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 4,567 | 1,134 | 871 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 2020 | 93 | (97) | 93 | ||||||||||||||||||||||||||||||||||||||||||||||
2019 | 95 | (187) | 90 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Company | 2020 | $ | 19,318 | $ | 5,297 | $ | 4,308 | |||||||||||||||||||||||||||||||||||||||||||
2019 | 17,798 | 4,343 | 3,617 |
Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | ||||||||||||||||||||||||||||||
Goodwill at June 30, 2020 | $ | 12,902 | $ | 12,815 | $ | 7,786 | $ | 1,841 | $ | 4,557 | $ | 39,901 | |||||||||||||||||||||||
Translation and other | 251 | 182 | 148 | 19 | 68 | 668 | |||||||||||||||||||||||||||||
Goodwill at September 30, 2020 | $ | 13,153 | $ | 12,997 | $ | 7,934 | $ | 1,860 | $ | 4,625 | $ | 40,569 |
Gross Carrying Amount | Accumulated Amortization | ||||||||||
Intangible assets with determinable lives | $ | 8,571 | $ | (5,849) | |||||||
Intangible assets with indefinite lives | 21,092 | — | |||||||||
Total identifiable intangible assets | $ | 29,663 | $ | (5,849) |
Approximate Percent Change in Estimated Fair Value | |||||||||||||||||
+25 bps Discount Rate | -25 bps Growth Rates | ||||||||||||||||
Shave Care goodwill reporting unit | (6) | % | (6) | % | |||||||||||||
Gillette indefinite-lived intangible asset | (6) | % | (6) | % |
CONSOLIDATED AMOUNTS | Three Months Ended September 30 | ||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net earnings | $ | 4,308 | $ | 3,617 | |||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | 31 | 24 | |||||||||||||||||||||||||||
Net earnings attributable to P&G (Diluted) | 4,277 | 3,593 | |||||||||||||||||||||||||||
Less: Preferred dividends, net of tax | 66 | 65 | |||||||||||||||||||||||||||
Net earnings attributable to P&G available to common shareholders (Basic) | $ | 4,211 | $ | 3,528 | |||||||||||||||||||||||||
SHARES IN MILLIONS | |||||||||||||||||||||||||||||
Basic weighted average common shares outstanding | 2,486.1 | 2,504.0 | |||||||||||||||||||||||||||
Add: Effect of dilutive securities | |||||||||||||||||||||||||||||
Conversion of preferred shares (1)
|
83.9 | 87.4 | |||||||||||||||||||||||||||
Impact of stock options and other unvested equity awards (2)
|
55.3 | 56.1 | |||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 2,625.3 | 2,647.5 | |||||||||||||||||||||||||||
NET EARNINGS PER SHARE (3)
|
|||||||||||||||||||||||||||||
Basic | $ | 1.69 | $ | 1.41 | |||||||||||||||||||||||||
Diluted | $ | 1.63 | $ | 1.36 |
Three Months Ended September 30 | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Share-based compensation expense | $ | 89 | $ | 110 | |||||||||||||||||||||||||
Net periodic benefit cost for pension benefits (1)
|
47 | 40 | |||||||||||||||||||||||||||
Net periodic benefit credit for other retiree benefits (1)
|
(80) | (52) |
Amount of Gain/(Loss) Recognized in OCI on Derivatives | ||||||||||||||||||||||||||||||||
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2)
|
||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (186) | $ | 113 |
Amount of Gain/(Loss) Recognized in Earnings | ||||||||||||||||||||||||||||||||
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 7 | $ | 90 | ||||||||||||||||||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 106 | $ | (97) |
Investment Securities | Post-retirement Benefits | Foreign Currency Translation | Total AOCI | ||||||||||||||||||||
Balance at June 30, 2020 | $ | (1) | $ | (4,350) | $ | (11,814) | $ | (16,165) | |||||||||||||||
OCI before reclassifications (1)
|
6 | (152) | 352 | 206 | |||||||||||||||||||
Amounts reclassified from AOCI into the Consolidated Statements of Earnings (2)
|
— | 83 | — | 83 | |||||||||||||||||||
Net current period OCI | 6 | (69) | 352 | 289 | |||||||||||||||||||
Less: Other comprehensive income/(loss) attributable to non-controlling interests | — | — | 5 | 5 | |||||||||||||||||||
Balance at September 30, 2020 | $ | 5 | $ | (4,419) | $ | (11,467) | $ | (15,881) |
Reserve Balance | Three Months Ended September 30, 2020 | Reserve Balance | ||||||||||||||||||||||||||||||
June 30, 2020 | Cost Incurred and Charged to Expense | Cost Paid/Settled | September 30, 2020 | |||||||||||||||||||||||||||||
Total | $ | 472 | $ | 22 | $ | (191) | $ | 303 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Reportable Segments | Product Categories (Sub-Categories) | Major Brands | ||||||
Beauty |
Hair Care (Conditioner, Shampoo, Styling Aids, Treatments)
|
Head & Shoulders, Herbal Essences, Pantene, Rejoice | ||||||
Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care)
|
Olay, Old Spice, Safeguard, Secret, SK-II | |||||||
Grooming |
Grooming (1) (Shave Care - Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care; Appliances)
|
Braun, Gillette, Venus | ||||||
Health Care |
Oral Care (Toothbrushes, Toothpaste, Other Oral Care)
|
Crest, Oral-B | ||||||
Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Pain Relief, Other Personal Health Care)
|
Metamucil, Neurobion, Pepto-Bismol, Vicks | |||||||
Fabric & Home Care |
Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents)
|
Ariel, Downy, Gain, Tide | ||||||
Home Care (Air Care, Dish Care, P&G Professional, Surface Care)
|
Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer | |||||||
Baby, Feminine & Family Care |
Baby Care (Baby Wipes, Taped Diapers and Pants)
|
Luvs, Pampers | ||||||
Feminine Care (Adult Incontinence, Feminine Care)
|
Always, Always Discreet, Tampax | |||||||
Family Care (Paper Towels, Tissues, Toilet Paper)
|
Bounty, Charmin, Puffs |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Net Sales | Net Earnings | ||||||||||||||||||||||||||||
Beauty | 20% | 23% | |||||||||||||||||||||||||||
Grooming | 8% | 8% | |||||||||||||||||||||||||||
Health Care | 13% | 13% | |||||||||||||||||||||||||||
Fabric & Home Care | 34% | 32% | |||||||||||||||||||||||||||
Baby, Feminine & Family Care | 25% | 24% | |||||||||||||||||||||||||||
Total Company | 100% | 100% |
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||
Amounts in millions, except per share amounts | 2020 | 2019 | % Chg | |||||||||||||||||||||||||||||
Net sales | $19,318 | $17,798 | 9% | |||||||||||||||||||||||||||||
Operating income | 5,281 | 4,290 | 23% | |||||||||||||||||||||||||||||
Net earnings | 4,308 | 3,617 | 19% | |||||||||||||||||||||||||||||
Net earnings attributable to Procter & Gamble | 4,277 | 3,593 | 19% | |||||||||||||||||||||||||||||
Diluted net earnings per common share | 1.63 | 1.36 | 20% | |||||||||||||||||||||||||||||
Core net earnings per common share | 1.63 | 1.37 | 19% | |||||||||||||||||||||||||||||
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||
COMPARISONS AS A PERCENTAGE OF NET SALES | 2020 | 2019 | Basis Pt Chg | |||||||||||||||||||||||||||||
Gross margin | 52.7% | 51.0% | 170 | |||||||||||||||||||||||||||||
Selling, general & administrative expense | 25.3% | 26.9% | (160) | |||||||||||||||||||||||||||||
Operating income | 27.3% | 24.1% | 320 | |||||||||||||||||||||||||||||
Earnings before income taxes | 27.4% | 24.4% | 300 | |||||||||||||||||||||||||||||
Net earnings | 22.3% | 20.3% | 200 | |||||||||||||||||||||||||||||
Net earnings attributable to Procter & Gamble | 22.1% | 20.2% | 190 |
Net Sales Change Drivers 2020 vs. 2019 (Three Months Ended September 30) (1)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix |
Other (2)
|
Net Sales Growth | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beauty | 7% | 7% | (1)% | 1% | —% | —% | 7% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grooming | 5% | 5% | (2)% | 2% | —% | —% | 5% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Health Care | 9% | 9% | (1)% | 1% | 2% | —% | 11% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabric & Home Care | 10% | 10% | —% | —% | 4% | —% | 14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby, Feminine & Family Care | 3% | 3% | (1)% | 1% | —% | —% | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Company | 7% | 7% | (1)% | 1% | 1% | 1% | 9% |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | % Change Versus Year Ago | Earnings/(Loss) Before Income Taxes | % Change Versus Year Ago | Net Earnings | % Change Versus Year Ago | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beauty | $ | 3,786 | 7 | % | $ | 1,228 | 12 | % | $ | 976 | 12 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Grooming | 1,601 | 5 | % | 426 | — | % | 355 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Health Care | 2,471 | 11 | % | 679 | 26 | % | 525 | 31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabric & Home Care | 6,644 | 14 | % | 1,743 | 30 | % | 1,349 | 31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baby, Feminine & Family Care | 4,723 | 3 | % | 1,318 | 16 | % | 1,010 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 93 | N/A | (97) | N/A | 93 | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Company | $ | 19,318 | 9 | % | $ | 5,297 | 22 | % | $ | 4,308 | 19 | % |
Three Months Ended September 30, 2020 | Net Sales Growth | Foreign Exchange Impact |
Acquisition & Divestiture Impact/Other (1)
|
Organic Sales Growth | |||||||||||||||||||
Beauty | 7% | 1% | (1)% | 7% | |||||||||||||||||||
Grooming | 5% | 2% | (1)% | 6% | |||||||||||||||||||
Health Care | 11% | 1% | —% | 12% | |||||||||||||||||||
Fabric & Home Care | 14% | —% | —% | 14% | |||||||||||||||||||
Baby, Feminine & Family Care | 3% | 1% | —% | 4% | |||||||||||||||||||
Total Company | 9% | 1% | (1)% | 9% |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Operating Cash Flow | Capital Spending | U.S. Tax Act Payments | Adjusted Free Cash Flow | |||||||||||||||||||||||||||||||||||
$4,739 | $(850) | $225 | $4,114 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||
Adjusted Free Cash Flow | Net Earnings | Adjusted Free Cash Flow Productivity | ||||||||||||||||||||||||
$4,114 | $4,308 | 95% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
AS REPORTED (GAAP) | AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | ROUNDING | NON-GAAP (CORE) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 4,277 | 3,593 | 31 | (1) | 3,623 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Core EPS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (1)
|
$ | 1.63 | $ | 1.36 | $ | 0.01 | $ | — | $ | 1.37 |
CHANGE IN CURRENT YEAR REPORTED (GAAP) MEASURES VERSUS PRIOR YEAR NON-GAAP (CORE) MEASURES (1)
|
||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 18 | % | ||||||||||||||||||||||||
EPS | 19 | % |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period |
Total Number of Shares Purchased (1)
|
Average Price Paid per Share (2)
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)
|
Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Program | |||||||||||||||||||
7/01/2020 - 7/31/2020 | 2,128,022 | $121.65 | — |
(3)
|
|||||||||||||||||||
8/01/2020 - 8/31/2020 | 7,384,222 | $135.42 | 7,384,222 |
(3)
|
|||||||||||||||||||
9/01/2020 - 9/30/2020 | 7,257,329 | $137.79 | 7,257,329 |
(3)
|
|||||||||||||||||||
Total | 16,769,573 | $134.70 | 14,641,551 |
Item 6. | Exhibits |
3-1 | Amended Articles of Incorporation (as amended by shareholders at the annual meeting on October 11, 2011 and consolidated by the Board of Directors on April 8, 2016) (Incorporated by reference to Exhibit (3-1) of the Company's Form 10-K for the year ended June 30, 2016). | |||||||
3-2 | Regulations (as approved by the Board of Directors on April 8, 2016, pursuant to authority granted by shareholders at the annual meeting on October 13, 2009) (Incorporated by reference to Exhibit (3-2) of the Company's Form 10-K for the year ended June 30, 2016). | |||||||
10-1 |
Summary of the Company’s Short Term Achievement Reward Program* +
|
|||||||
10-2 |
Short Term Achievement Reward Program – Related Correspondence and Terms and Conditions* +
|
|||||||
10-3 |
Summary of the Company’s Long-Term Incentive Program* +
|
|||||||
10-4 |
Long-Term Incentive Program – Related Correspondence and Terms and Conditions* +
|
|||||||
10-5 |
The Procter & Gamble Performance Stock Program Summary* +
|
|||||||
10-6 |
Performance Stock Program – Related Correspondence and Terms and Conditions* +
|
|||||||
10-7 |
Company’s Form of Separation Agreement & Release* +
|
|||||||
31.1 | Rule 13a-14(a)/15d-14(a) Certification – Chief Executive Officer + | |||||||
31.2 | Rule 13a-14(a)/15d-14(a) Certification – Chief Financial Officer + | |||||||
32.1 | Section 1350 Certifications – Chief Executive Officer + | |||||||
32.2 | Section 1350 Certifications – Chief Financial Officer + | |||||||
101.SCH (1)
|
Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL (1)
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF (1)
|
Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB (1)
|
Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE (1)
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
* | Compensatory plan or arrangement | ||||
+ | Filed herewith | ||||
(1)
|
Pursuant to Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
THE PROCTER & GAMBLE COMPANY | ||||||||||||||
October 20, 2020 | /s/ VALARIE L. SHEPPARD | |||||||||||||
Date | (Valarie L. Sheppard) | |||||||||||||
Controller and Treasurer and Executive Vice President - | ||||||||||||||
Company Transition Leader | ||||||||||||||
(Principal Accounting Officer) |
Exhibit | ||||||||
101.SCH (1)
|
Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL (1)
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF (1)
|
Inline XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB (1)
|
Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE (1)
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
+ | Filed herewith | ||||
(1)
|
Pursuant to Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
AWARD AGREEMENT [DATE]
|
|||||
NAME
|
GLOBAL ID
|
To Accept Your Award
|
To Reject Your Award
|
||||||||||||||||||||||
Read and check the boxes below:
|
Read and check the box(es) below:
|
||||||||||||||||||||||
□ |
I have read, understand and agree to be bound by each of:
|
||||||||||||||||||||||
•The Procter & Gamble 2019 Stock and Incentive Compensation Plan
•Regulations of the Committee
•This Award Agreement, including Attachment A
|
□ |
I have read and understand the terms noted above and do not agree to be bound by these terms. I hereby reject the restricted stock unit award detailed above.
|
|||||||||||||||||||||
□ |
I accept the restricted stock unit award detailed above (including attachments)
|
Target Number of Units:
|
||||||||
Maximum Number of Units:
|
||||||||
Conversion Ratio:
|
1 PSU = 1 Common Share
|
|||||||
Grant Date:
|
[DATE]
|
|||||||
Vest Date:
|
[DATE]
|
|||||||
Performance Period:
|
1 July [YEAR] - 30 June [YEAR]
|
|||||||
Original Settlement Date (Shares Delivered on):
|
[DATE]
|
|||||||
Acceptance Deadline:
|
[DATE]
|
Attachment(s):
|
||
Attachment A
|
||
Attachment B: Performance Factors and Payout Formula
|
||
PSP Summary
|
To Accept Your Award
|
To Reject Your Award
|
||||||||||||||||||||||||||||||||||||||||||||||
Read and check the boxes below:
|
Read and check the box(es) below: | ||||||||||||||||||||||||||||||||||||||||||||||
□ |
I have read, understand and agree to be bound by each of:
|
||||||||||||||||||||||||||||||||||||||||||||||
•The Procter & Gamble 2019 Stock and Incentive Compensation Plan
•Regulations of the Committee
•This Award Agreement, including Attachments A and B
|
□ | I have read and understand the terms noted above and do not agree to be bound by these terms. I hereby reject the stock option award detailed above. | |||||||||||||||||||||||||||||||||||||||||||||
□ | I have read and understand the terms noted above and do not agree to be bound by these terms. I hereby reject the restricted stock unit award detailed above. | ||||||||||||||||||||||||||||||||||||||||||||||
□ | I accept the stock option award detailed above (including attachments) | □ | I have read and understand the terms noted above and do not agree to be bound by these terms. I hereby reject the performance share award detailed above. | ||||||||||||||||||||||||||||||||||||||||||||
□ | I accept the restricted stock unit award detailed above (including attachments) | ||||||||||||||||||||||||||||||||||||||||||||||
□ | I accept the performance share award detailed above (including attachments) |
Last Day of Employment:
|
Your last day of employment will be «Exit_Date», referred to as your “Last Day of Employment.” You understand and agree that if P&G determines that you engaged in misconduct during your employment, or if you fail to perform your work and responsibilities in a satisfactory manner up to and including your Last Day of Employment, P&G may terminate your employment immediately and will not provide, nor be obligated to provide, the payment(s) and other benefits described in this Agreement. Otherwise, unless noted below, your pay and benefits will cease as of your Last Day of Employment.
|
||||
Separation Payment:
|
As soon as administratively practical after your Last Day of Employment, P&G will provide you with a Separation Payment of «Total_Amount», less legally required withholdings and deductions. In no event will payment be made before expiration of the seven-day revocation period discussed below or later than the March 15th of the year following the year which includes your last day of employment.
Amounts you owe to P&G as of your Last Day of Employment, including, but not limited to, wage and/or benefit overpayments and unpaid loans, will also be deducted from the Separation Payment.
|
||||
Payment for Unvested PST:
|
If you are not fully-vested in the Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan (“PST”) as of your Last Day of Employment, as soon as administratively practical after your Last Day of Employment, but no later than the March 15th of the year following the year which includes your Last Day of Employment, you will receive a lump sum payment in an amount substantially equivalent to the non-vested credits in your account in the PST.
|
||||
STAR Awards:
|
As of your Last Day of Employment, if you worked at least 28 days (4 calendar weeks) during that fiscal year, you will receive a pro-rated STAR award for that fiscal year. Your STAR award will be pro-rated by dividing the number of calendar days during the fiscal year from July 1 through your Last Day of Employment by 365. Your STAR award will be paid in cash in the September (but no later than September 15th) immediately following the end of the fiscal year in which you terminate.
|
Outplacement Services:
|
P&G’s outplacement supplier, Right Management Consultants, will provide services to assist you in managing your transition to a new future, based on your interest. Services include pre-decision counseling, career transition programs, and job development opportunities. Right Management Consultants will also assist you in preparing for your job search, including résumé preparation, cover letters, other written materials and interview and networking training.
After you accept this Agreement, you may begin utilizing outplacement services on a limited basis prior to your Last Day of Employment, consistent with the needs of the business and your responsibilities to complete and/or transition your work. Note that you must begin utilizing outplacement services within 45 days of your Last Day of Employment to be eligible for this benefit.
|
||||
No Consideration Without Executing this Agreement:
|
You affirm that you understand and agree that you would not receive the separation payment and/or benefits specified in this Agreement without executing this Agreement and fulfilling the promises contained in it. Except as provided in this Agreement or under the terms and conditions of an applicable benefit plan or policy sponsored by P&G, you shall not be due any payments or benefits from P&G in connection with the termination of your employment.
|
||||
Continued Employment Through Your Last Day of Employment:
|
You agree to perform your work and responsibilities as an employee in a satisfactory manner up to and including your Last Day of Employment, including compliance with all provisions of this “Separation Agreement and Release.” If P&G determines that you have engaged in serious misconduct during your employment, you understand and agree that P&G may terminate your employment immediately and will not provide, nor will it be obligated to provide, you with the Separation Payment, medical benefits, outplacement and other benefits described above. If you have already received any such pay or benefits, you agree to repay them to P&G upon demand.
|
||||
Nonadmission of Wrongdoing:
|
You affirm that you understand and agree that neither this Agreement nor the furnishing of the consideration for this Agreement, including the Separation Payment, shall be deemed or construed at any time for any purpose as an admission by P&G of wrongdoing or evidence of any liability or unlawful conduct of any kind.
|
Release of Claims – Including Age Discrimination and Employment Claims:
|
In consideration of the Separation Payment and other benefits provided above to which you would not have been entitled under any existing P&G Policy, you release P&G from any and all claims you have against P&G. The term “P&G” includes «Company» and any of its present, former and future owners, parents, affiliates and subsidiaries, and its and their directors, officers, shareholders, employees, agents, servants, representatives, predecessors, successors and assigns and their employee benefit plans and programs and their administrators and fiduciaries.
This release applies to claims about which you now know or may later discover, and includes but is not limited to: (1) claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq.; (2) claims arising out of or relating in any way to your employment with P&G or the conclusion of that employment; (3) claims arising under any federal, state and local employment discrimination laws, regulations or ordinances or other orders that relate to the employment relationship and/or employee benefits; and (4) any other federal, state or local law, rule, regulation or ordinance, public policy, contract, tort or common law.
This release does not apply to claims that may arise after the date you accept this Agreement or that may not be released under applicable law.
If any claim is not subject to release, to the extent permitted by law, you agree that you waive any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which P&G is a party.
Governmental Agencies: Nothing in this Separation Letter & Release prohibits or prevents you from filing a charge with or participating, testifying, or assisting in any investigation, hearing, or other proceeding before the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board or a similar agency enforcing federal, state or local anti-discrimination laws. However, to the maximum extent permitted by law, you agree that if such an administrative claim is made to such an anti-discrimination agency, you shall not be entitled to recover any individual monetary relief or other individual remedies. Nothing in this Separation Letter & Release, including but not limited to the “Release of Claims – Including Age Discrimination and Employment Claims” and the “Confidential, Proprietary, Trade Secret Information & Period of Non-Competition” sections of this Separation Letter & Release, prohibits you from: (1) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, including but not limited to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations; or (3) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange Commission and/or the Occupational Safety and Health Administration. You understand you do not need the prior authorization from the Company to make any such reports or disclosures, and you are not required to notify the Company that you have made such reports or disclosures. Moreover, nothing in this Separation Letter & Release prohibits or prevents you from receiving individual monetary awards or other individual relief by virtue of participating in such federal whistleblower programs.
|
Confidential, Proprietary, Trade Secret Information & Period of Non-Competition:
|
Subject to the “Governmental Agencies” portion of the “Release of Claims – Including Age Discrimination and Employment Claims” above, you agree that you will not use or share any confidential, proprietary or trade secret information about any aspect of P&G’s business with any non-P&G employee or business entity at any time in the future. You further agree that you will not obtain, transfer or have in your possession any confidential, proprietary or trade secret information on or after your last day of employment, even information you may have created yourself or to which you may have contributed as a P&G employee. Confidential, proprietary or trade secret information includes, but is not limited to, marketing and advertising plans, pricing information, upstream plans, specific areas of research and development, project work, product formulation, processing methods, assignments of individual employees, testing and evaluation procedures, cost figures, construction plans, and special techniques or methods of any kind.
Notwithstanding the requirements of confidentiality contained in this section, the federal Defend Trade Secrets Act of 2016 immunizes you against criminal and civil liability under federal or state trade secret laws for your disclosure of trade secrets that is made i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or iii) to your attorney for use in a lawsuit alleging retaliation for reporting a suspected violation of law, provided that any document containing the trade secret is filed under seal and you do not otherwise disclose the trade secret, except pursuant to court order.
You further understand and agree that, unless you have prior written consent from P&G, you will not engage in any activity or provide any services for a period of three (3) years following your Last Day of Employment in connection with the manufacture, development, advertising, promotion or sale of any product which is the same as, similar to, or competitive with any products of P&G or its subsidiaries (including both existing products as well as products in development which are known to you, as a consequence of your employment with P&G):
1.With respect to which your work has been directly concerned at any time during the two (2) years preceding your Last Day of Employment; or
2.With respect to which during that period of time you, as a consequence of your job performance and duties, acquired knowledge of trade secrets or other confidential information of P&G.
e or over too great a range of activities or in too broad a geographic area, it will be modified and interpreted to extend only over the maximum period of time, range of activities or geographic area so that it may be enforceable.
As a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, you are also bound by the terms of Article F – Restrictions & Covenants of those plans, which are incorporated herein by reference.
If you are a participant in the Procter & Gamble 2019 Stock and Incentive Compensation Plan and the Procter & Gamble 2014 Stock and Incentive Compensation Plan, you are also bound by the terms of Article 6 – Restrictions and Covenants of this plan which are incorporated herein by reference.
|
For the purposes of this section, it shall be conclusively presumed that you have knowledge or information to which you were directly exposed through the actual receipt of memos or documents containing such information or through actual attendance at meetings at which such information was discussed or disclosed. The provisions of this section are not in lieu of, but are in addition to, your continuing obligation to not use or disclose P&G’s trade secrets and confidential information known to you until any particular trade secret or confidential information becomes generally known (through no fault of yours). Information regarding products in development, in test market or being marketed or promoted in a discrete geographic region, which information P&G is considering for a broader use, shall not be deemed generally known until such broader use is actually commercially implemented. Also, “generally known” means known throughout the domestic United States industry or, if you have job responsibilities outside of the United States, the appropriate foreign country or countries’ industry.
If any restriction in this section is found by any court of competent jurisdiction or arbitrator to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it will be modified and interpreted to extend only over the maximum period of time, range of activities or geographic area so that it may be enforceable. As a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, you are also bound by the terms of Article F – Restrictions & Covenants of those plans, which are incorporated herein by reference. If you are a participant in the Procter & Gamble 2019 Stock and Incentive Compensation Plan and the Procter & Gamble 2014 Stock and Incentive Compensation Plan, you are also bound by the terms of Article 6 – Restrictions and Covenants of this plan which are incorporated herein by reference. |
Non-Solicitation
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You acknowledge, as a participant in the Procter & Gamble 2019 Stock and Incentive Compensation Plan, the Procter & Gamble 2014 Stock & Incentive Compensation Plan, the Procter & Gamble 2009 Stock and Incentive Compensation Plan, the Procter & Gamble 2001 Stock and Incentive Plan, the Procter & Gamble 1992 Stock Plan, and/or the Gillette Company 2004 Long-Term Incentive Plan that you are bound to comply with the Plans’ non-solicitation obligations. Specifically, you agree that you will not, at any time following your Employment Separation Date, attempt to directly or indirectly induce any employee of P&G or its affiliates or subsidiaries to be employed or perform services elsewhere or attempt directly or indirectly to solicit the trade or business of any current or prospective customer, supplier or partner of P&G or its affiliates or subsidiarie
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Acknowledgements and Affirmations:
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Subject to the “Governmental Agencies” portion of the “Release of Claims – Including Age Discrimination and Employment Claims” above, you affirm that you have not filed, caused to be filed, or presently are a party to any claim against P&G.
You affirm that you have been paid and/or have received all compensation, wages, bonuses, commissions, and/or benefits which are due and payable as of the date you sign this Agreement. To the extent that you are required to report hours worked, you affirm that you have reported all hours worked as of the date you sign this Agreement.
You affirm that you have been granted any leave to which you were entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws.
You further affirm that you have no known workplace injuries or occupational diseases that have not been reported.
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Assignment of Intellectual Property:
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You will promptly and fully disclose, transfer and assign to P&G all inventions and any other intellectual property (collectively “Intellectual Property”) made or conceived by you during your employment with P&G. You agree to fully cooperate in executing any papers required for establishing or protecting the Intellectual Property and for establishing P&G’s ownership, even if such cooperation is necessary after your Last Day of Employment
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Return of P&G Property:
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You agree that on or before your Last Day of Employment, you will return to P&G in good condition all of its equipment, materials and information that were in your possession, custody or control (including, but not limited to, computers, files, documents, credit cards, keys and identification badges). You further agree that you will provide your manager with all passwords to P&G electronic communication and data systems before your Last Day of Employment. You further agree that on or before your Last Day of Employment, you will return or if directed to do so by your immediate manager, delete (i.e., destroy all copies of) any and all P&G confidential, proprietary or trade secret information you have maintained in your possession, custody, or control in paper, electronic and/or digital formats, including but not limited to, any such confidential, proprietary, or trade secret information (e.g., files, documents, etc.) that you may have electronically or digitally processed or stored on P&G-issued or on personally-owned or maintained digital devices and/or service accounts. Such digital devices and/or service accounts may include, but are not limited to desktop and laptop computers, notebooks, tablets, iPads, mobile phones, smartphones, personal digital assistants (PDAs), USB and flash drives, external hard drives, CDs, DVDs, and/or external file processing or storage provided by cloud service providers such as box.net, dropbox, Google docs, etc.
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Ethics Compliance:
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Subject to the “Governmental Agencies” portion of the “Release of Claims – Including Age Discrimination and Employment Claims” above, you agree that you provided P&G all information known to you regarding any violations of the Procter & Gamble Worldwide Business Conduct Manual and/or any other violations of P&G policy or the law.
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Agreement to Arbitrate Disputes:
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Resolving any future differences we may have in the courts can take a long time and be expensive. You and P&G therefore agree that the only remedy for all disputes that are not released by this Agreement or that arise out of your employment with or separation from P&G, or any aspect of this Agreement, will be to submit any such disputes (with the exception noted at the end of this section) to final and binding arbitration in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration Association then in effect.
You and P&G agree that the aggrieved party must send written notice of any claim to the other party by certified mail, return receipt requested. Written notice for P&G will be sent to: Secretary, One Procter & Gamble Plaza, Cincinnati, OH 45202, and to you at the most current address shown for you in P&G’s records. The arbitrator will apply Ohio law. At your written request, P&G will reimburse you for all fees and costs charged by the American Arbitration Association and its arbitrator to the extent they exceed the applicable fees and costs that would have been charged by a court of competent jurisdiction had your claim been filed in court.
There is one exception to this section. P&G may seek injunctive relief in any court of competent jurisdiction if it has reason to believe that you have violated or are about to violate (1) the terms of the “Confidential, Proprietary, Trade Secret Information & Period of Non-Competition” section above, or (2) if you are a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, the terms of Article F – Restrictions & Covenants of those plans or (3) if you are a participant in the 2014 Stock and Incentive Compensation Plan, the terms of Article 6 – Restrictions & Covenants of those plans.
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Severability:
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If any court of competent jurisdiction or arbitrator should later find that any portion of this Agreement is invalid, that invalidity will not affect the enforceability of any other portion of this Agreement.
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Employment References:
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You understand that P&G’s historical policy is to not provide employment references to prospective employers. However, P&G is willing to waive that policy in your case on the following basis: You authorize your manager or human resources representative to provide an employment reference upon written or verbal request. In return, you release any claim against P&G and will not bring a lawsuit in court against P&G based upon that employment reference (or lack thereof). You agree that you will refer all reference inquiries to your manager or human resources representative only. You further understand that all disputes regarding employment references or the lack thereof must be resolved through the arbitration process described above.
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/s/ DAVID S. TAYLOR | ||
(David S. Taylor) | ||
Chairman of the Board, President and Chief Executive Officer
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October 20, 2020 | ||
Date |
/s/ JON R. MOELLER | ||
(Jon R. Moeller) | ||
Vice Chairman, Chief Operating Officer and Chief Financial Officer | ||
October 20, 2020 | ||
Date |
/s/ DAVID S. TAYLOR | ||
(David S. Taylor) | ||
Chairman of the Board, President and Chief Executive Officer
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October 20, 2020 | ||
Date |
/s/ JON R. MOELLER | ||
(Jon R. Moeller) | ||
Vice Chairman, Chief Operating Officer and Chief Financial Officer | ||
October 20, 2020 | ||
Date |