Colgate Announces 4th Quarter and Full Year 2014 Results
All Operating Divisions Contributed to Volume Growth
Net income and Diluted earnings per share in fourth quarter 2014 were
Net income and Diluted earnings per share in fourth quarter 2013 were
Excluding the above noted items in both periods, Net income in fourth
quarter 2014 was
Gross profit margin was 58.6% in fourth quarter 2014 versus 58.9% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.8% in fourth quarter 2014, a decrease of 30 basis points versus the year ago quarter, primarily as a result of higher raw and packaging material costs, which included significant foreign exchange transaction costs, which were partially offset by the benefits from cost savings from the Company's funding-the-growth initiatives and the 2012 Restructuring Program and higher pricing.
Selling, general and administrative expenses were 34.0% of Net sales in
fourth quarter 2014 versus 37.0% of Net sales in fourth quarter 2013.
Excluding the above noted items in both periods, Selling, general and
administrative expenses decreased by 100 basis points to 33.5% of Net
sales in fourth quarter 2014, due to lower overhead expenses and
decreased advertising investment, both as a percentage of Net sales.
Worldwide advertising investment decreased 8% to
Operating profit increased 12% to
Net cash provided by operations for the full year 2014 was
For the full year 2014, worldwide Net sales were
Net income and Diluted earnings per share for full year 2014 were
Net income and Diluted earnings per share for full year 2013 were
Excluding the items noted above in both periods, Net income for full year 2014 increased 2% versus full year 2013, and Diluted earnings per share increased 3% versus full year 2013, reflecting a double-digit increase on a currency neutral basis.
Gross profit margin was 58.5% for full year 2014 versus 58.6% in full year 2013. Excluding the items noted above in both periods, Gross profit margin was 58.7% in full year 2014, a decrease of 10 basis points versus full year 2013, primarily as a result of higher raw and packaging material costs, which included foreign exchange transaction costs, which were largely offset by the benefits from cost savings from the Company's funding-the-growth initiatives and the 2012 Restructuring Program and higher pricing.
"All operating divisions contributed to the 6.0% organic sales growth, driven by positive unit volume growth and, in most divisions, higher pricing. Organic sales grew 9.5% in emerging markets, despite economic challenges in certain countries.
"Colgate's leading global market shares in toothpaste and manual toothbrushes remain strong at 44.5% and 33.4%, respectively, on a year-to-date basis. We continue to make great progress in mouthwash, with our global market share in that category at 16.9% year-to-date, up 10 basis points versus the year ago period."
In closing,
At
The following are comments about divisional performance for fourth quarter 2014 versus the year ago period. See attached Geographic Sales Analysis Percentage Changes and Segment Information schedules for additional information on divisional net sales and operating profit.
North America Net sales increased 1.0% in fourth quarter 2014. Unit volume increased 3.0% with 1.0% lower pricing due to increased promotional activities, while foreign exchange was negative 1.0%. Organic sales increased 2.0% during the quarter.
Operating profit in
In the U.S., new product launches are contributing to volume growth.
Market share gains year-to-date were seen in manual toothbrushes,
powered toothbrushes, mouthwash, liquid cleaners and fabric
conditioners. In toothpaste,
In manual toothbrushes, Colgate continued its brand market leadership in
the U.S. with its market share in that category reaching a record 40.5%
year to date, up 2.4 share points versus the year ago period. This
success was driven by strong sales of Colgate Optic White Toothbrush +
Built-In Whitening Pen, Colgate 360°
Successful products driving volume growth in the U.S. in other categories include Colgate Total Lasting White, Colgate Optic White and Colgate Kids mouthwashes, Fabuloso liquid cleaner and Suavitel Fast Dry fabric conditioner.
Latin America Net sales decreased 6.0% in fourth quarter 2014. Unit
volume increased 1.0% with 11.5% higher pricing, while foreign exchange
was negative 18.5%. Volume gains were led by
Operating profit in
Colgate's strong leadership in toothpaste throughout
Products in other categories contributing to volume growth include Protex Men, Protex Vitamin E, Protex Omega 3, Palmolive Naturals Pomegranate, Palmolive Naturals Olive and Aloe and Palmolive Naturals Yogurt and Royal Jelly bar soaps, Suavitel Complete and Suavitel Aroma Intense fabric conditioners, Axion Goodbye Odors dish liquid and Fabuloso Apple liquid cleaner.
Operating profit in
Colgate strengthened its oral care leadership in the
Recent premium innovations contributing to volume growth in other product categories include Ajax All Usage Gel liquid cleaner, Soupline Paradise Sensations fabric conditioner and the relaunch of Sanex Dermo Protector and Palmolive Naturals shower gels.
Asia Net sales increased 4.5% during fourth quarter 2014. Unit volume
increased 4.5% with 2.0% higher pricing, while foreign exchange was
negative 2.0%. Volume gains were led by the
Operating profit in
Colgate continued its toothpaste leadership in
Successful products contributing to volume growth in other categories in
the region include Colgate Slim Soft Charcoal and Colgate 360° Charcoal
Gold manual toothbrushes, Colgate Plax Fresh Jasmine Tea,
Operating profit in
Colgate continued its toothpaste leadership in
Hill's Pet Nutrition (13% of Company Sales)
Hill's Net sales decreased 1.0% during fourth quarter 2014. Unit volume
increased 0.5% with 3.5% higher pricing, while foreign exchange was
negative 5.0%. Volume gains were led by
Hill's Operating profit was
New product introductions in the U.S. include Hill's Ideal Balance Slim & Healthy, Hill's Science Diet Perfect Weight and Hill's Prescription Diet c/d Multicare Urinary Stress, c/d Multicare with Ocean Fish, i/d Chicken & Vegetable Stew and k/d Vegetable & Tuna Stew. Other successful products include Hill's Ideal Balance Small Breed, Large Breed and Grain Free and Hill's Science Diet Sensitive Stomach & Skin and Grain Free.
New product introductions driving volume growth internationally include Hill's Prescription Diet Metabolic, c/d Multicare Urinary Stress and c/d Multicare with Ocean Fish, Hill's Ideal Balance, Hill's Science Plan Small & Miniature Breed and Hill's Science Diet Perfect Weight.
***
About
Market Share Information
Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data. Market share data is subject to limitations on the availability of up-to-date information. We believe that the third-party vendors we use to provide data are reliable, but we have not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information calculated by the Company may be different from market share information calculated by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.
Explanatory Note Regarding Currency Neutral Calculations
Diluted earnings per share growth for fourth quarter 2014 and full year 2014, on a currency neutral basis, eliminates from Diluted earnings per share growth (GAAP) the impact of the items described in Table 8 and Table 9, respectively, and the period-over-period changes in foreign exchange rates in the translation of local currency results into U.S. dollars. Accordingly, for purposes of calculating Diluted earnings per share growth for fourth quarter 2014 and full year 2014, on a currency neutral basis, fourth quarter 2014 and full year 2014 local currency results, which include the impact of foreign currency transaction gains and losses, are translated into U.S. dollars using average foreign exchange rates for fourth quarter 2013 and full year 2013, respectively.
Management's estimate of earnings per share growth on a currency neutral basis for 2015 eliminates from earnings per share growth (GAAP) the impact of period-over-period changes in foreign exchange rates in the translation of local currency results into U.S. dollars. Accordingly, for purposes of estimating earnings per share growth for full year 2015, on a currency neutral basis, estimated full year 2015 local currency results, which include the impact of estimated foreign currency transaction gains and losses, are translated into U.S. dollars using full year 2014 average foreign exchange rates.
Cautionary Statement on Forward-Looking Statements
This press release and the related webcast may contain forward-looking
statements. Such statements may relate, for example, to sales or volume
growth, organic sales growth, profit or profit margin growth, earnings
per share growth (including on a currency neutral basis), financial
goals, the impact of currency devaluations, exchange controls, price
controls and labor unrest, including in
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP financial measures used in this earnings release and/or the related webcast:
This release discusses organic sales growth, which is Net sales growth
excluding the impact of foreign exchange, acquisitions and divestments.
Management believes this measure provides investors with useful
supplemental information regarding the Company's underlying sales trends
by presenting sales growth excluding the external factor of foreign
exchange as well as the impact from acquisitions and divestments. See
"Geographic Sales Analysis Percentage Changes" for the three and twelve
months ended
To supplement Colgate's Condensed Consolidated Statements of Income
presented in accordance with GAAP, the Company has disclosed non-GAAP
measures of operating results that exclude certain items. Worldwide
Gross profit, Gross profit margin, Selling, general and administrative
expenses, Selling, general and administrative expenses as a percentage
of Net sales, Other (income) expense, net, Operating profit, Operating
profit margin, Net income attributable to
The Company uses these financial measures internally in its budgeting process and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company's business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.
The Company defines free cash flow before dividends as Net cash provided
by operations less Capital expenditures. As management uses this measure
to evaluate the Company's ability to satisfy current and future
obligations, repurchase stock, pay dividends and fund future business
opportunities, the Company believes that it provides useful information
to investors. Free cash flow before dividends is not a measure of cash
available for discretionary expenditures since the Company has certain
non-discretionary obligations such as debt service that are not deducted
from the measure. Free cash flow before dividends is not a GAAP
measurement and may not be comparable to similarly titled measures
reported by other companies. See "Condensed Consolidated Statements of
Cash Flows" for the twelve months ended
(See attached tables for fourth quarter results.)
Table 1 | ||||||||
|
||||||||
Condensed Consolidated Statements of Income | ||||||||
For the Three Months Ended |
||||||||
(Dollars in Millions Except Per Share Amounts) (Unaudited) | ||||||||
2014 | 2013 | |||||||
Net sales | $ | 4,221 | $ | 4,361 | ||||
Cost of sales | 1,746 | 1,794 | ||||||
Gross profit | 2,475 | 2,567 | ||||||
Gross profit margin | 58.6 | % | 58.9 | % | ||||
Selling, general and administrative expenses | 1,434 | 1,612 | ||||||
Other (income) expense, net | 46 | 63 | ||||||
Operating profit | 995 | 892 | ||||||
Operating profit margin | 23.6 | % | 20.5 | % | ||||
Interest (income) expense, net | 4 | (1 | ) | |||||
Income before income taxes | 991 | 893 | ||||||
Provision for income taxes | 325 | 292 | ||||||
Effective tax rate | 32.8 | % | 32.7 | % | ||||
Net income including noncontrolling interests | 666 | 601 | ||||||
Less: Net income attributable to noncontrolling interests | 38 | 37 | ||||||
Net income attributable to |
$ | 628 | $ | 564 | ||||
Earnings per common share | ||||||||
Basic | $ | 0.69 | $ | 0.61 | ||||
Diluted | $ | 0.68 | $ | 0.60 | ||||
Average common shares outstanding | ||||||||
Basic | 911.3 | 925.7 | ||||||
Diluted | 920.0 | 935.3 | ||||||
Table 2 | ||||||||
|
||||||||
Condensed Consolidated Statements of Income | ||||||||
For the Twelve Months Ended |
||||||||
(Dollars in Millions Except Per Share Amounts) (Unaudited) | ||||||||
2014 | 2013 | |||||||
Net sales | $ | 17,277 | $ | 17,420 | ||||
Cost of sales | 7,168 | 7,219 | ||||||
Gross profit | 10,109 | 10,201 | ||||||
Gross profit margin | 58.5 | % | 58.6 | % | ||||
Selling, general and administrative expenses | 5,982 | 6,223 | ||||||
Other (income) expense, net | 570 | 422 | ||||||
Operating profit | 3,557 | 3,556 | ||||||
Operating profit margin | 20.6 | % | 20.4 | % | ||||
Interest (income) expense, net | 24 | (9 | ) | |||||
Income before income taxes | 3,533 | 3,565 | ||||||
Provision for income taxes | 1,194 | 1,155 | ||||||
Effective tax rate | 33.8 | % | 32.4 | % | ||||
Net income including noncontrolling interests | 2,339 | 2,410 | ||||||
Less: Net income attributable to noncontrolling interests | 159 | 169 | ||||||
Net income attributable to |
$ | 2,180 | $ | 2,241 | ||||
Earnings per common share | ||||||||
Basic | $ | 2.38 | $ | 2.41 | ||||
Diluted | $ | 2.36 | $ | 2.38 | ||||
Average common shares outstanding | ||||||||
Basic | 915.1 | 930.8 | ||||||
Diluted | 924.3 | 939.9 | ||||||
|
Table 3 | ||||||||||
|
|||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
As of |
|||||||||||
(Dollars in Millions) (Unaudited) | |||||||||||
|
|
||||||||||
2014 | 2013 | ||||||||||
Cash and cash equivalents | $ | 1,089 | $ | 962 | |||||||
Receivables, net | 1,552 | 1,636 | |||||||||
Inventories | 1,382 | 1,425 | |||||||||
Other current assets | 840 | 908 | |||||||||
Property, plant and equipment, net | 4,080 | 4,083 | |||||||||
Other assets, including goodwill and intangibles | 4,516 | 4,971 | |||||||||
Total assets | $ | 13,459 | $ | 13,985 | |||||||
Total debt | $ | 6,148 | $ | 5,657 | |||||||
Other current liabilities | 3,442 | 3,671 | |||||||||
Other non-current liabilities | 2,484 | 2,121 | |||||||||
Total liabilities | 12,074 | 11,449 | |||||||||
|
1,145 | 2,305 | |||||||||
Noncontrolling interests | 240 | 231 | |||||||||
Total liabilities and shareholders' equity | $ | 13,459 | $ | 13,985 | |||||||
Supplemental Balance Sheet Information | |||||||||||
Debt less cash, cash equivalents and marketable securities* | $ | 4,859 | $ | 4,522 | |||||||
Working capital % of sales | 0.8 | % | 0.7 | % | |||||||
* |
Marketable securities of |
||||||||||
Table 4 | |||||||
|
|||||||
Condensed Consolidated Statements of Cash Flows | |||||||
For the Twelve Months Ended |
|||||||
(Dollars in Millions) (Unaudited) | |||||||
2014 | 2013 | ||||||
Operating Activities | |||||||
Net income including noncontrolling interests | $ | 2,339 | $ | 2,410 | |||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||||||
Depreciation and amortization | 442 | 439 | |||||
Restructuring and termination benefits, net of cash | 64 | 182 | |||||
Voluntary benefit plan contribution | (2 | ) | (101 | ) | |||
|
327 | 172 | |||||
Charge for a foreign tax matter | 66 | - | |||||
Stock-based compensation expense | 131 | 128 | |||||
Deferred income taxes | 18 | 71 | |||||
Cash effects of changes in: | |||||||
Receivables | (109 | ) | (37 | ) | |||
Inventories | (60 | ) | (97 | ) | |||
Accounts payable and other accruals | 57 | 24 | |||||
Other non-current assets and liabilities | 25 | 13 | |||||
Net cash provided by operations |
3,298 | 3,204 | |||||
Investing Activities | |||||||
Capital expenditures | (757 | ) | (670 | ) | |||
Sale of property and non-core products | 24 | 15 | |||||
Purchases of marketable securities and investments | (340 | ) | (505 | ) | |||
Proceeds from sale of marketable securities and investments | 283 | 267 | |||||
Payment for acquisitions, net of cash acquired | (87 | ) | (3 | ) | |||
Other | 18 | 6 | |||||
Net cash used in investing activities | (859 | ) | (890 | ) | |||
Financing Activities | |||||||
Principal payments on debt | (8,525 | ) | (7,554 | ) | |||
Proceeds from issuance of debt | 8,960 | 7,976 | |||||
Dividends paid | (1,446 | ) | (1,382 | ) | |||
Purchases of treasury shares | (1,530 | ) | (1,521 | ) | |||
Proceeds from exercise of stock options and excess tax benefits | 371 | 339 | |||||
Net cash used in financing activities | (2,170 | ) | (2,142 | ) | |||
Effect of exchange rate changes on Cash and cash equivalents | (142 | ) | (94 | ) | |||
Net increase (decrease) in Cash and cash equivalents | 127 | 78 | |||||
Cash and cash equivalents at beginning of the period | 962 | 884 | |||||
Cash and cash equivalents at end of the period | $ | 1,089 | $ | 962 | |||
Supplemental Cash Flow Information | |||||||
Free cash flow before dividends (Net cash provided by operations less Capital expenditures) | |||||||
Net cash provided by operations | $ | 3,298 | $ | 3,204 | |||
Less: Capital expenditures | (757 | ) | (670 | ) | |||
Free cash flow before dividends | $ | 2,541 | $ | 2,534 | |||
Income taxes paid | $ | 1,009 | $ | 1,087 | |||
|
Table 5 | |||||||||||||||
|
||||||||||||||||
Segment Information | ||||||||||||||||
For the Three and Twelve Months Ended |
||||||||||||||||
(Dollars in Millions) (Unaudited) | ||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Sales | ||||||||||||||||
Oral, Personal and Home Care | ||||||||||||||||
|
$ | 780 | $ | 772 | $ | 3,124 | $ | 3,072 | ||||||||
|
1,192 | 1,265 | 4,769 | 5,012 | ||||||||||||
|
782 | 844 | 3,406 | 3,396 | ||||||||||||
|
599 | 572 | 2,515 | 2,472 | ||||||||||||
|
292 | 325 | 1,208 | 1,257 | ||||||||||||
Total Oral, Personal and Home Care | 3,645 | 3,778 | 15,022 | 15,209 | ||||||||||||
Pet Nutrition | 576 | 583 | 2,255 | 2,211 | ||||||||||||
Total Net Sales | $ | 4,221 | $ | 4,361 | $ | 17,277 | $ | 17,420 | ||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating Profit | ||||||||||||||||
Oral, Personal and Home Care | ||||||||||||||||
|
$ | 239 | $ | 241 | $ | 926 | $ | 927 | ||||||||
|
348 | 363 | 1,279 | 1,385 | ||||||||||||
|
196 | 200 | 877 | 805 | ||||||||||||
|
178 | 165 | 736 | 698 | ||||||||||||
|
58 | 76 | 235 | 268 | ||||||||||||
Total Oral, Personal and Home Care | 1,019 | 1,045 | 4,053 | 4,083 | ||||||||||||
Pet Nutrition | 153 | 153 | 592 | 563 | ||||||||||||
Corporate(1) | (177 | ) | (306 | ) | (1,088 | ) | (1,090 | ) | ||||||||
Total Operating Profit | $ | 995 | $ | 892 | $ | 3,557 | $ | 3,556 | ||||||||
Note: |
(1) Corporate operations includes costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets. |
Corporate Operating profit (loss) for the three months ended
|
Corporate Operating profit (loss) for the twelve months ended
|
Table 6 | |||||||||||||||||||||
|
|||||||||||||||||||||
Geographic Sales Analysis Percentage Changes | |||||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
COMPONENTS OF SALES CHANGE | |||||||||||||||||||||
Pricing | |||||||||||||||||||||
Coupons | |||||||||||||||||||||
Sales | 3 months | Consumer & | |||||||||||||||||||
Change | Organic | As Reported | Organic | Ex-Divested | Trade | Foreign | |||||||||||||||
Region |
As Reported |
Sales Change |
Volume |
Volume |
Volume |
Incentives |
Exchange |
||||||||||||||
|
(3.0 | )% | 6.0 | % | 2.5 | % | 2.5 | % | 2.5 | % | 3.5 | % | (9.0 | )% | |||||||
|
(7.5 | )% | 1.0 | % | 2.5 | % | 3.0 | % | 3.0 | % | (2.0 | )% | (8.0 | )% | |||||||
|
(6.0 | )% | 12.0 | % | 1.0 | % | 0.5 | % | 1.0 | % | 11.5 | % | (18.5 | )% | |||||||
|
4.5 | % | 6.0 | % | 4.5 | % | 4.0 | % | 4.5 | % | 2.0 | % | (2.0 | )% | |||||||
|
(10.0 | )% | 7.5 | % | 5.0 | % | 5.0 | % | 5.0 | % | 2.5 | % | (17.5 | )% | |||||||
|
(4.5 | )% | 7.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | 5.0 | % | (12.0 | )% | |||||||
|
1.0 | % | 2.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | (1.0 | )% | (1.0 | )% | |||||||
Total CP Products | (3.5 | )% | 6.0 | % | 2.5 | % | 2.5 | % | 2.5 | % | 3.5 | % | (9.5 | )% | |||||||
Hill's | (1.0 | )% | 4.0 | % | 0.5 | % | 0.5 | % | 0.5 | % | 3.5 | % | (5.0 | )% | |||||||
Emerging Markets (1) | (3.5 | )% | 9.5 | % | 2.5 | % | 2.5 | % | 2.5 | % | 7.0 | % | (13.0 | )% | |||||||
Developed Markets | (2.5 | )% | 1.5 | % | 2.0 | % | 2.0 | % | 2.0 | % | (0.5 | )% | (4.0 | )% | |||||||
Note: |
|||||||||||||||||||||
(1) Emerging Markets include |
|||||||||||||||||||||
Table 7 | |||||||||||||||||||||
|
|||||||||||||||||||||
Geographic Sales Analysis Percentage Changes | |||||||||||||||||||||
For the Twelve Months Ended |
|||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
COMPONENTS OF SALES CHANGE | |||||||||||||||||||||
Pricing | |||||||||||||||||||||
Coupons | |||||||||||||||||||||
Consumer & | |||||||||||||||||||||
Change | Organic | As Reported | Organic | Ex-Divested | Trade | Foreign | |||||||||||||||
Region |
As Reported |
Sales Change |
Volume |
Volume |
Volume |
Incentives |
Exchange |
||||||||||||||
|
(1.0 | )% | 5.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 2.0 | % | (6.0 | )% | |||||||
|
0.5 | % | 1.5 | % | 3.5 | % | 4.0 | % | 4.0 | % | (2.5 | )% | (0.5 | )% | |||||||
|
(5.0 | )% | 9.0 | % | 2.5 | % | 2.0 | % | 2.5 | % | 7.0 | % | (14.5 | )% | |||||||
|
1.5 | % | 4.5 | % | 3.5 | % | 3.5 | % | 3.5 | % | 1.0 | % | (3.0 | )% | |||||||
|
(4.0 | )% | 7.0 | % | 6.0 | % | 6.0 | % | 6.0 | % | 1.0 | % | (11.0 | )% | |||||||
|
(2.0 | )% | 6.0 | % | 3.5 | % | 3.5 | % | 3.5 | % | 2.5 | % | (8.0 | )% | |||||||
|
1.5 | % | 2.5 | % | 3.5 | % | 3.5 | % | 3.5 | % | (1.0 | )% | (1.0 | )% | |||||||
Total CP Products | (1.0 | )% | 5.0 | % | 3.5 | % | 3.5 | % | 3.5 | % | 1.5 | % | (6.0 | )% | |||||||
Hill's | 2.0 | % | 4.0 | % | 1.0 | % | 1.0 | % | 1.0 | % | 3.0 | % | (2.0 | )% | |||||||
Emerging Markets (1) | (2.5 | )% | 7.5 | % | 3.5 | % | 3.5 | % | 3.5 | % | 4.0 | % | (10.0 | )% | |||||||
Developed Markets | 1.0 | % | 2.0 | % | 2.0 | % | 2.5 | % | 2.5 | % | (0.5 | )% | (0.5 | )% | |||||||
Note: |
|||||||||||||||||||||
(1) Emerging Markets include |
|||||||||||||||||||||
Table 8 | |||||||||||
|
|||||||||||
Non-GAAP Reconciliations |
|||||||||||
For the Three Months Ended |
|||||||||||
(Dollars in Millions Except Per Share Amounts) (Unaudited) |
|||||||||||
Gross Profit | 2014 | 2013 | |||||||||
Gross profit, GAAP | $ | 2,475 | $ | 2,567 | |||||||
2012 Restructuring Program | 6 | 6 | |||||||||
Costs related to the sale of land in |
- | 4 | |||||||||
Gross profit, non-GAAP | $ | 2,481 | $ | 2,577 | |||||||
|
|||||||||||
Gross Profit Margin | 2014 | 2013 | Change | ||||||||
Gross profit margin, GAAP | 58.6 | % | 58.9 | % | (30 | ) | |||||
2012 Restructuring Program | 0.2 | % | 0.1 | % | |||||||
Costs related to the sale of land in |
- | % | 0.1 | % | |||||||
Gross profit margin, non-GAAP | 58.8 | % | 59.1 | % | (30 | ) | |||||
Selling, General and Administrative Expenses | 2014 | 2013 | |||||||||
Selling, general and administrative expenses, GAAP | $ | 1,434 | $ | 1,612 | |||||||
2012 Restructuring Program | (20 | ) | (106 | ) | |||||||
Selling, general and administrative expenses, non-GAAP | $ | 1,414 | $ | 1,506 | |||||||
|
|||||||||||
Selling, General and Administrative Expenses as a Percentage of Net Sales | 2014 | 2013 | Change | ||||||||
Selling, general and administrative expenses as a percentage of Net sales, GAAP | 34.0 | % | 37.0 | % | (300 | ) | |||||
2012 Restructuring Program | (0.5 | %) | (2.5 | %) | |||||||
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP | 33.5 | % | 34.5 | % | (100 | ) | |||||
Other (Income) Expense, Net | 2014 | 2013 | |||||||||
Other (income) expense, net, GAAP | $ | 46 | $ | 63 | |||||||
2012 Restructuring Program | (29 | ) | (61 | ) | |||||||
Charge for a European competition law matter | (30 | ) | (5 | ) | |||||||
Other (income) expense, net, non-GAAP | $ | (13 | ) | $ | (3 | ) | |||||
Operating Profit | 2014 | 2013 | % Change | ||||||||
Operating profit, GAAP | $ | 995 | $ | 892 | 12 | % | |||||
2012 Restructuring Program | 55 | 173 | |||||||||
Charge for a European competition law matter | 30 | 5 | |||||||||
Costs related to the sale of land in |
- | 4 | |||||||||
Operating profit, non-GAAP | $ | 1,080 | $ | 1,074 | 1 | % | |||||
|
|||||||||||
Operating Profit Margin | 2014 | 2013 | Change | ||||||||
Operating profit margin, GAAP | 23.6 | % | 20.5 | % | 310 | ||||||
2012 Restructuring Program | 1.3 | % | 3.9 | % | |||||||
Charge for a European competition law matter | 0.7 | % | 0.1 | % | |||||||
Costs related to the sale of land in |
- | % | 0.1 | % | |||||||
Operating profit margin, non-GAAP | 25.6 | % | 24.6 | % | 100 | ||||||
Net Income Attributable to |
2014 | 2013 | % Change | ||||||||
Net income attributable to |
$ | 628 | $ | 564 | 11 | % | |||||
2012 Restructuring Program | 41 | 125 | |||||||||
Charge for a European competition law matter | 30 | 5 | |||||||||
Costs related to the sale of land in |
- | 3 | |||||||||
Net income attributable to |
$ | 699 | $ | 697 | - | % | |||||
Diluted Earnings Per Common Share(1) | 2014 | 2013 | % Change | ||||||||
Diluted earnings per common share, GAAP | $ | 0.68 | $ | 0.60 | 13 | % | |||||
2012 Restructuring Program | 0.05 | 0.14 | |||||||||
Charge for a European competition law matter | 0.03 | 0.01 | |||||||||
Diluted earnings per common share, non-GAAP | $ | 0.76 | $ | 0.75 | 1 | % |
Note: | |
(1) | The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding. |
Table 9 | |||||||||||
|
|||||||||||
Non-GAAP Reconciliations |
|||||||||||
For the Twelve Months Ended |
|||||||||||
(Dollars in Millions Except Per Share Amounts) (Unaudited) |
|||||||||||
Gross Profit | 2014 | 2013 | |||||||||
Gross profit, GAAP | $ | 10,109 | $ | 10,201 | |||||||
2012 Restructuring Program | 29 | 32 | |||||||||
Costs related to the sale of land in |
4 | 15 | |||||||||
Gross profit, non-GAAP | $ | 10,142 | $ | 10,248 | |||||||
|
|||||||||||
Gross Profit Margin | 2014 | 2013 | Change | ||||||||
Gross profit margin, GAAP | 58.5 | % | 58.6 | % | (10 | ) | |||||
2012 Restructuring Program | 0.2 | % | 0.2 | % | |||||||
Gross profit margin, non-GAAP | 58.7 | % | 58.8 | % | (10 | ) | |||||
Selling, General and Administrative Expenses | 2014 | 2013 | |||||||||
Selling, general and administrative expenses, GAAP | $ | 5,982 | $ | 6,223 | |||||||
2012 Restructuring Program | (62 | ) | (137 | ) | |||||||
Selling, general and administrative expenses, non-GAAP | $ | 5,920 | $ | 6,086 | |||||||
|
|||||||||||
Selling, General and Administrative Expenses as a Percentage of Net Sales | 2014 | 2013 | Change | ||||||||
Selling, general and administrative expenses as a percentage of Net sales, GAAP | 34.6 | % | 35.7 | % | (110 | ) | |||||
2012 Restructuring Program | (0.3 | %) | (0.8 | %) | |||||||
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP | 34.3 | % | 34.9 | % | (60 | ) | |||||
Other (Income) Expense, Net | 2014 | 2013 | |||||||||
Other (income) expense, net, GAAP | $ | 570 | $ | 422 | |||||||
2012 Restructuring Program | (195 | ) | (202 | ) | |||||||
|
(327 | ) | (172 | ) | |||||||
Charges for European competition law matters | (41 | ) | (23 | ) | |||||||
Costs related to the sale of land in |
- | (3 | ) | ||||||||
Other (income) expense, net, non-GAAP | $ | 7 | $ | 22 | |||||||
Operating Profit | 2014 | 2013 | % Change | ||||||||
Operating profit, GAAP | $ | 3,557 | $ | 3,556 | - | % | |||||
2012 Restructuring Program | 286 | 371 | |||||||||
|
327 | 172 | |||||||||
Charges for European competition law matters | 41 | 23 | |||||||||
Costs related to the sale of land in |
4 | 18 | |||||||||
Operating profit, non-GAAP | $ | 4,215 | $ | 4,140 | 2 | % | |||||
|
|||||||||||
Operating Profit Margin | 2014 | 2013 | Change | ||||||||
Operating profit margin, GAAP | 20.6 | % | 20.4 | % | 20 | ||||||
2012 Restructuring Program | 1.7 | % | 2.2 | % | |||||||
|
1.9 | % | 1.0 | % | |||||||
Charges for European competition law matters | 0.2 | % | 0.1 | % | |||||||
Costs related to the sale of land in |
- | % | 0.1 | % | |||||||
Operating profit margin, non-GAAP | 24.4 | % | 23.8 | % | 60 | ||||||
Net Income Attributable to |
2014 | 2013 | % Change | ||||||||
Net income attributable to |
$ | 2,180 | $ | 2,241 | (3 | %) | |||||
2012 Restructuring Program | 208 | 278 | |||||||||
|
214 | 111 | |||||||||
Charges for European competition law matters | 41 | 23 | |||||||||
Costs related to the sale of land in |
3 | 12 | |||||||||
Charge for a foreign tax matter | 66 | - | |||||||||
Net income attributable to |
$ | 2,712 | $ | 2,665 | 2 | % | |||||
Diluted Earnings Per Common Share (1) (2) | 2014 | 2013 | % Change | ||||||||
Diluted earnings per common share, GAAP | $ | 2.36 | $ | 2.38 | (1 | %) | |||||
2012 Restructuring Program | 0.23 | 0.30 | |||||||||
|
0.23 | 0.12 | |||||||||
Charges for European competition law matters | 0.04 | 0.03 | |||||||||
Costs related to the sale of land in |
- | 0.01 | |||||||||
Charge for a foreign tax matter | 0.07 | - | |||||||||
Diluted earnings per common share, non-GAAP | $ | 2.93 | $ | 2.84 | 3 | % |
Notes: |
|
(1) The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding. | |
(2) Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not necessarily equal the earnings per share for any year-to-date period. |
Source:
News Provided by Acquire Media