0000021665-21-000010 | 10-Q | XBRL Viewer

Accumulated other comprehensive loss, cumulative translation losses

$ 3,128

Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefit costs

1,138

Beginning balance at Dec. 31, 2019

$ 1,466

$ 2,488

$ (2)

$ (22,063)

$ 22,501

$ (4,273)

$ 441

Other comprehensive income (loss), net of tax

Net income

748

715

(321)

(305)

(16)

Dividends

^[2]

(738)

(4)

Stock-based compensation expense

Shares issued for stock options

133

164

Shares issued for restricted stock units

(15)

Treasury stock acquired

(220)

Other

Ending balance at Mar. 31, 2020

1,466

2,623

(1)

(22,104)

22,481

(4,578)

454

Accumulated other comprehensive loss, cumulative translation losses

3,467

Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefit costs

1,122

Accumulated other comprehensive loss, cumulative translation losses

3,158

Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefit costs

1,178

Beginning balance at Dec. 31, 2020

1,101

1,466

2,969

(1)

(23,045)

23,699

(4,345)

358

Other comprehensive income (loss), net of tax

Net income

728

681

(113)

(110)

(3)

Dividends

^[2]

(756)

Stock-based compensation expense

Shares issued for stock options

Shares issued for restricted stock units

(11)

Treasury stock acquired

(372)

Other

(1)

Ending balance at Mar. 31, 2021

663

$ 1,466

$ 3,011

$ 0

$ (23,384)

$ 23,624

$ (4,455)

$ 401

Accumulated other comprehensive loss, cumulative translation losses

3,313

Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefit costs

$ 1,176

[1]

Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,313 at March 31, 2021 ($3,467 at March 31, 2020) and $3,158 at December 31, 2020 ($3,128 at December 31, 2019), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,176 at March 31, 2021 ($1,122 at March 31, 2020) and $1,178 at December 31, 2020 ($1,138 at December 31, 2019), respectively.

[2]

Two dividends were declared in each of the first quarters of 2021 and 2020.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical)

3 Months Ended

Mar. 31, 2021

Dividend

$ / shares

Mar. 31, 2020

Dividend

$ / shares

Statement of Stockholders' Equity [Abstract]

Dividends declared per common share (in dollars per share) | $ / shares

^[1]

$ 0.89

$ 0.87

Number of dividends declared per quarter | Dividend

[1]	Two dividends were declared in each of the first quarters of 2021 and 2020.

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Condensed Consolidated Financial Statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair statement of the results for interim periods. Results of operations for interim periods may not be representative of results to be expected for a full year. Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”) reclassifies certain prior year amounts, as applicable, to conform to the current year presentation. For a complete set of financial statement notes, including the Company’s significant accounting policies, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”).

Use of Estimates	3 Months Ended
Use of Estimates	Mar. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates Provisions for certain expenses, including income taxes, advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales, as applicable.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2021-01, “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition due to reference rate reform. This guidance was effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The Company is currently evaluating the impact of the new guidance and does not expect this standard to have a material impact on the Company’s Consolidated Financial Statements. In October 2020, the FASB issued ASU No. 2020-10, “Codification Improvements.” This ASU improves the consistency of the codification topics by including all disclosure guidance in the appropriate disclosure section and also clarifies the application of various provisions in the codification. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (“GAAP”) to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance was effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The Company is currently evaluating the impact of the new guidance and does not expect this standard to have a material impact on the Company’s Consolidated Financial Statements. In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting and forward contracts and purchase options on certain types of securities. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements.

Inventory, Net, Items Net of Reserve Alternative [Abstract]

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

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+ Details

Acquisitions

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Acquisitions

Hello Products LLC (“hello”)

On January 31, 2020, the Company acquired hello, an oral care business, for cash consideration of $351. The acquisition was financed with a combination of debt and cash. This acquisition is part of the Company’s strategy to focus on high growth segments within its Oral Care, Personal Care and Pet Nutrition businesses.

The total purchase price consideration of $351 was allocated to the net assets acquired based on their respective estimated fair values as follows:


Receivables	$	11
Inventories	13
Other assets and liabilities, net	(4)
Other intangible assets	160

Goodwill	171
Fair value of net assets acquired	$	351

Other intangible assets acquired include trademarks, valued at $115, which are considered to have a finite useful life of 25 years, and customer relationships, valued at $45, which are considered to have a finite useful life of 17 years. Goodwill of $171 was allocated to the North America segment. The Company expects that goodwill will be deductible for tax purposes.

Pro forma results of operations have not been presented as the impact on the Company’s Condensed Consolidated Financial Statements is not material.

Restructuring and Related Implementation Charges	3 Months Ended
Restructuring and Related Implementation Charges	Mar. 31, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Related Implementation Charges	Restructuring and Related Implementation Charges The Company’s restructuring program (the “Global Growth and Efficiency Program”), which commenced in the fourth quarter of 2012, concluded on December 31, 2019. Initiatives under the Global Growth and Efficiency Program fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities. Substantially all initiatives under the Global Growth and Efficiency Program had been implemented as of December 31, 2019 and no new restructuring projects were approved for implementation subsequent to the conclusion of the Global Growth and Efficiency Program. During the three months ended March 31, 2021 and March 31, 2020, the Company made cash payments of $13 and $30, respectively, related to projects approved prior to the conclusion of the Global Growth and Efficiency Program. The accrual balance at March 31, 2021 and December 31, 2020 was $19 and $31, respectively.

Inventories

3 Months Ended

Mar. 31, 2021

Inventories

Inventories by major class are as follows:


	March 31, 2021		December 31, 2020
Raw materials and supplies	$	463	$	454
Work-in-process	48		45
Finished goods	1,264		1,256
Total Inventories, net	$	1,775	$	1,755
Non-current inventory, net	$	(99)	$	(82)
Current Inventories, net	$	1,676	$	1,673

Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

For the three months ended March 31, 2021 and 2020, earnings per share were as follows:


	Three Months Ended
	March 31, 2021					March 31, 2020
	Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share		Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share
Basic EPS	$	681	848.6	$	0.80	$	715	856.9	$	0.83
Stock options and restricted stock units			2.8					1.5
Diluted EPS	$	681	851.4	$	0.80	$	715	858.4	$	0.83

For the three months ended March 31, 2021 and 2020, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 2,721,084 and 20,965,110, respectively.

Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Other Comprehensive Income (Loss)

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended March 31, 2021 and 2020 were as follows:


	2021				2020
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	(99)	$	(155)	$	(320)	$	(339)
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	(19)		(14)		2		1
Amortization of net actuarial loss, transition and prior service costs (1)	22		16		17		15
Retirement plans and other retiree benefits adjustments	3		2		19		16
Cash flow hedges:
Unrealized gains (losses) on cash flow hedges	53		41		25		20
Reclassification of (gains) losses into net earnings on cash flow hedges (2)	3		2		(3)		(2)
Gains (losses) on cash flow hedges	56		43		22		18
Total Other comprehensive income (loss)	$	(40)	$	(110)	$	(279)	$	(305)

(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details.

(2) These (gains) losses are reclassified into Cost of sales. See Note 13, Fair Value Measurements and Financial Instruments for additional details.

There were no tax impacts on Other comprehensive income (loss) (“OCI”) attributable to Noncontrolling interests.

Retirement Plans and Other Retiree Benefits

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans and Other Retiree Benefits

Components of Net periodic benefit cost for the three months ended March 31, 2021 and 2020 were as follows:


	Three Months Ended March 31, 2021
	Pension Benefits								Other Retiree Benefits
	United States				International

	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	—	$	4	$	4	$	6	$	6
Interest cost	15		19		5		5		9		11
Expected return on plan assets	(27)		(27)		(6)		(4)		—		—
Amortization of actuarial loss (gain)	13		11		3		1		6		5
Net periodic benefit cost	$	1	$	3	$	6	$	6	$	21	$	22

For the three months ended March 31, 2021 and 2020, the Company made no voluntary contributions to its U.S. postretirement plans.

The entire disclosure for retirement benefits.

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+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the quarter ended March 31, 2020 includes $71 of income tax benefits recorded on a discrete period basis of which $45 relates to previously recorded foreign withholding taxes and $26 relates to a previously recorded valuation allowance against a deferred tax asset. As more fully described below, both items were previously recorded in connection with the charge recorded by the Company in 2017 and revised in 2018 related to the Tax Cuts and Jobs Acts (the “TCJA”). As part of the previously recorded charge for the TCJA, the Company had provided for foreign withholding taxes expected to be paid on the remittance of earnings from certain overseas subsidiaries no longer deemed indefinitely reinvested. As a result of a reorganization of the ownership structure of certain foreign subsidiaries, the Company determined that no withholding taxes would be due on the remittance by certain subsidiaries of earnings previously deemed reinvested and, accordingly, in the first quarter of 2020, reversed $45 of previously recorded foreign withholding taxes. Also as part of the previously recorded charge for the TCJA, the Company provided a valuation allowance against a deferred tax asset related to foreign tax credit carry-forwards that the Company did not expect to be able to use due to changes made by the TCJA. As a result of a new operating structure implemented within one of the Company’s divisions, the Company believes the use of these foreign tax credit carry-forwards will not be limited in the future and, accordingly, in the first quarter of 2020, reversed the previously recorded valuation allowance of $26.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2021
Loss Contingency [Abstract]
Contingencies	Contingencies As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, pension, data privacy and security, environmental and tax matters and consumer class actions. Management proactively reviews and monitors the Company’s exposure to, and the impact of, environmental matters. The Company is party to various environmental matters and, as such, may be responsible for all or a portion of the cleanup, restoration and post-closure monitoring of several sites. The Company establishes accruals for loss contingencies when it has determined that a loss is probable and that the amount of loss, or range of loss, can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. For those matters disclosed below for which the amount of any potential losses can be reasonably estimated, the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $400 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more matters could be material to the Company’s results of operations or cash flows for any particular quarter or year. Brazilian Matters There are certain tax and civil proceedings outstanding, as described below, related to the Company’s 1995 acquisition of the Kolynos oral care business from Wyeth (the “Seller”). The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, penalties and any court-mandated fees, at the current exchange rate, are approximately $103. This amount includes additional assessments received from the Brazilian internal revenue authority in April 2016 relating to net operating loss carryforwards used by the Company’s Brazilian subsidiary to offset taxable income that had also been deducted from the authority’s original assessments. The Company has been disputing the disallowances by appealing the assessments since October 2001. In each of September 2015, February 2017, June 2018, April 2019 and September 2020, the Company lost an administrative appeal and subsequently filed an appeal in Brazilian federal court. Currently, there are five appeals pending in the Brazilian federal court. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the disallowances are without merit and that the Company should ultimately prevail. The Company is challenging these disallowances vigorously. In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the Company should ultimately prevail in this action. The Company is challenging this action vigorously. In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest, penalties and any court-mandated fees of approximately $45, at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company had been disputing the assessment within the internal revenue authority’s administrative appeals process. However, in November 2015, the Superior Chamber of Administrative Tax Appeals denied the Company’s final administrative appeal, and the Company has filed a lawsuit in the Brazilian federal court. In the event the Company is unsuccessful in this lawsuit, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the tax assessment is without merit and that the Company should ultimately prevail. The Company is challenging this assessment vigorously. Competition Matter Certain of the Company’s subsidiaries were historically subject to actions and, in some cases, fines, by governmental authorities in a number of countries related to alleged competition law violations. Substantially all of these matters also involved other consumer goods companies and/or retail customers. The Company’s policy is to comply with antitrust and competition laws and, if a violation of any such laws is found, to take appropriate remedial action and to cooperate fully with any related governmental inquiry. The status as of March 31, 2021 of such competition law matters pending against the Company during the three months ended March 31, 2021 is set forth below. ▪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 appealed the decision to the Greek courts. In April 2019, the Greek courts affirmed the judgment against the Company’s Greek subsidiary, but reduced the fine to $10.5 and dismissed the case against Colgate-Palmolive Company. The Company’s Greek subsidiary and the Greek competition authority have appealed the decision to the Greek Supreme Court. Talcum Powder Matters The Company has been named as a defendant in civil actions alleging that certain talcum powder products that were sold prior to 1996 were contaminated with asbestos. Most of these actions involve a number of co-defendants from a variety of different industries, including suppliers of asbestos and manufacturers of products that, unlike the Company’s products, were designed to contain asbestos. As of March 31, 2021, there were 147 individual cases pending against the Company in state and federal courts throughout the United States, as compared to 137 cases as of December 31, 2020. During the three months ended March 31, 2021, 14 new cases were filed and three cases were resolved by voluntary dismissal. In addition, during the three months ended March 31, 2021, the Company won an appeal in one case that, in 2019, resulted in a jury verdict in favor of the Company and, since all of the plaintiff’s appeals have been exhausted, the case is now closed. There were no settlements of pending cases in the three months ended March 31, 2021. A significant portion of the Company’s costs incurred in defending and resolving these claims has been, and the Company believes a portion of such costs will continue to be, covered by insurance policies issued by several primary, excess and umbrella insurance carriers, subject to deductibles, exclusions, retentions, policy limits and insurance carrier insolvencies. While the Company and its legal counsel believe that these cases are without merit and intend to challenge them vigorously, there can be no assurances regarding the ultimate resolution of these matters. With the exception of one case where the Company received an adverse jury verdict in the second quarter of 2019 that the Company has appealed, the range of reasonably possible losses in excess of accrued liabilities disclosed above does not include any amount relating to these cases because the amount of any possible losses from such cases currently cannot be reasonably estimated. ERISA Matter In June 2016, a putative class action claiming that residual annuity payments made to certain participants in the Colgate-Palmolive Company Employees’ Retirement Income Plan (the “Plan”) did not comply with the Employee Retirement Income Security Act was filed against the Plan, the Company and certain individuals (the “Company Defendants”) in the United States District Court for the Southern District of New York (the “Court”). The relief sought includes recalculation of benefits, pre- and post-judgment interest and attorneys’ fees. This action was certified as a class action in July 2017. In July 2020, the Court granted in part and denied in part the Company Defendants’ motion for summary judgment and dismissed certain claims on consent of the parties. In August 2020, the Court granted the plaintiffs’ motion for summary judgment on the remaining claims. The Company and the Plan are contesting this action vigorously and, in September 2020, appealed to the United States Court of Appeals for the Second Circuit.

Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition.

The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.

The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes.

The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.

Net sales by segment were as follows:


	Three Months Ended
	March 31,
	2021		2020
Net sales
Oral, Personal and Home Care
North America	$	923	$	929
Latin America	907		889
Europe	717		675
Asia Pacific	739		633
Africa/Eurasia	272		252
Total Oral, Personal and Home Care	3,558		3,378
Pet Nutrition	786		719
Total Net sales	$	4,344	$	4,097

Approximately 70% of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe).

The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:


	Three Months Ended
	March 31,
	2021		2020
Net sales
Oral Care	45	%	44	%
Personal Care	19	%	20	%
Home Care	18	%	18	%
Pet Nutrition	18	%	18	%
Total Net sales	100	%	100	%

Operating profit by segment was as follows:


	Three Months Ended
	March 31,
	2021		2020
Operating profit
Oral, Personal and Home Care
North America	$	202	$	258
Latin America	272		248
Europe	180		154
Asia Pacific	224		161
Africa/Eurasia	54		56
Total Oral, Personal and Home Care	932		877
Pet Nutrition	215		203
Corporate	(143)		(128)
Total Operating profit	$	1,004	$	952

For the three months ended March 31, 2020, Corporate Operating profit (loss) included acquisition-related costs of $6.

Fair Value Measurements and Financial Instruments

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value Measurements and Financial Instruments

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.

The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged.

The Company’s derivative instruments include interest rate swap contracts, forward-starting interest rate swaps, foreign currency contracts and commodity contracts. The Company utilizes interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes forward-starting interest rate swaps to mitigate the risk of variability in interest rate for future debt issuances and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes foreign currency contracts, including forward and swap contracts, option contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 12 months.

The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Consolidated Balance Sheets at March 31, 2021 and December 31, 2020:


	Assets					Liabilities
	Account	Fair Value				Account	Fair Value
Designated derivative instruments		March 31, 2021		December 31, 2020			March 31, 2021		December 31, 2020

Interest rate swap contracts	Other assets	$	11	$	14	Other liabilities	$	—	$	—

Forward-starting interest rate swaps	Other assets	51		5		Other liabilities	—		—
Foreign currency contracts	Other current assets	13		7		Other accruals	55		93

Commodity contracts	Other current assets	2		3		Other accruals	—		—
Total designated		$	77	$	29		$	55	$	93

Other financial instruments
Marketable securities	Other current assets	$	62	$	37
Total other financial instruments		$	62	$	37

The carrying amount of cash, cash equivalents, marketable securities, accounts receivable and short-term debt approximated fair value as of March 31, 2021 and December 31, 2020. The estimated fair value of the Company’s long-term debt, including the current portion, as of March 31, 2021 and December 31, 2020, was $8,097 and $8,175, respectively, and the related carrying value was $7,579 and $7,343, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation).

The following amounts were recorded on the Condensed Consolidated Balance Sheet related to the cumulative basis adjustment for fair value hedges as of:


	March 31, 2021		December 31, 2020
Long-term debt:
Carrying amount of hedged item	$	411	$	413
Cumulative hedging adjustment included in the carrying amount	11		14

The following tables present the notional values as of:


	March 31, 2021
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	527	$	—	$	400	$	—	$	—	$	927
Cash Flow Hedges	825		—		—		600		19		1,444
Net Investment Hedges	604		4,164		—		—		—		4,768


	December 31, 2020
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	589	$	—	$	400	$	—	$	—	$	989
Cash Flow Hedges	854		—		—		300		17		1,171
Net Investment Hedges	528		4,523		—		—		—		5,051

The following tables present the location and amount of gains (losses) recognized on the Company’s Condensed Consolidated Statements of Income:


	Three Months Ended March 31,
	2021						2020
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	2	$	—	$	—	$	(12)
Hedged items	—		—		(2)		—		—		12
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		—		—		—		24		—
Hedged items	—		—		—		—		(24)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	(6)		—		—		2		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	3		—		—		1		—		—
Total gain (loss) on hedges recognized in income	$	(3)	$	—	$	—	$	3	$	—	$	—

The following table presents the location and amount of unrealized gains (losses) included in OCI:


	Three Months Ended
	March 31,
	2021		2020
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	6	$	25

Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	46		—

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	23		25
Gain (loss) on hedged items	(23)		(25)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	211		65
Gain (loss) on hedged items	(211)		(65)
Total unrealized gain (loss) on hedges recognized in OCI	$	53	$	25

Use of Estimates (Policies)	3 Months Ended
Use of Estimates (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates Provisions for certain expenses, including income taxes, advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales, as applicable.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2021-01, “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition due to reference rate reform. This guidance was effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The Company is currently evaluating the impact of the new guidance and does not expect this standard to have a material impact on the Company’s Consolidated Financial Statements. In October 2020, the FASB issued ASU No. 2020-10, “Codification Improvements.” This ASU improves the consistency of the codification topics by including all disclosure guidance in the appropriate disclosure section and also clarifies the application of various provisions in the codification. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (“GAAP”) to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance was effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The Company is currently evaluating the impact of the new guidance and does not expect this standard to have a material impact on the Company’s Consolidated Financial Statements. In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting and forward contracts and purchase options on certain types of securities. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This guidance was effective for the Company beginning on January 1, 2021 and did not have a material impact on the Company’s Consolidated Financial Statements.

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The total purchase price consideration of $351 was allocated to the net assets acquired based on their respective estimated fair values as follows:


Receivables	$	11
Inventories	13
Other assets and liabilities, net	(4)
Other intangible assets	160

Goodwill	171
Fair value of net assets acquired	$	351

Inventories (Tables)

3 Months Ended

Mar. 31, 2021

Inventory, Net, Items Net of Reserve Alternative [Abstract]

Inventories by Major Class

Inventories by major class are as follows:


	March 31, 2021		December 31, 2020
Raw materials and supplies	$	463	$	454
Work-in-process	48		45
Finished goods	1,264		1,256
Total Inventories, net	$	1,775	$	1,755
Non-current inventory, net	$	(99)	$	(82)
Current Inventories, net	$	1,676	$	1,673

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

For the three months ended March 31, 2021 and 2020, earnings per share were as follows:


	Three Months Ended
	March 31, 2021					March 31, 2020
	Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share		Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share
Basic EPS	$	681	848.6	$	0.80	$	715	856.9	$	0.83
Stock options and restricted stock units			2.8					1.5
Diluted EPS	$	681	851.4	$	0.80	$	715	858.4	$	0.83

Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended March 31, 2021 and 2020 were as follows:


	2021				2020
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	(99)	$	(155)	$	(320)	$	(339)
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	(19)		(14)		2		1
Amortization of net actuarial loss, transition and prior service costs (1)	22		16		17		15
Retirement plans and other retiree benefits adjustments	3		2		19		16
Cash flow hedges:
Unrealized gains (losses) on cash flow hedges	53		41		25		20
Reclassification of (gains) losses into net earnings on cash flow hedges (2)	3		2		(3)		(2)
Gains (losses) on cash flow hedges	56		43		22		18
Total Other comprehensive income (loss)	$	(40)	$	(110)	$	(279)	$	(305)

(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details.

(2) These (gains) losses are reclassified into Cost of sales. See Note 13, Fair Value Measurements and Financial Instruments for additional details.

Retirement Plans and Other Retiree Benefits (Tables)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Components Of Net Periodic Benefit Cost

Components of Net periodic benefit cost for the three months ended March 31, 2021 and 2020 were as follows:


	Three Months Ended March 31, 2021
	Pension Benefits								Other Retiree Benefits
	United States				International

	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	—	$	4	$	4	$	6	$	6
Interest cost	15		19		5		5		9		11
Expected return on plan assets	(27)		(27)		(6)		(4)		—		—
Amortization of actuarial loss (gain)	13		11		3		1		6		5
Net periodic benefit cost	$	1	$	3	$	6	$	6	$	21	$	22

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Net Sales and Operating Profit by Segment

Net sales by segment were as follows:


	Three Months Ended
	March 31,
	2021		2020
Net sales
Oral, Personal and Home Care
North America	$	923	$	929
Latin America	907		889
Europe	717		675
Asia Pacific	739		633
Africa/Eurasia	272		252
Total Oral, Personal and Home Care	3,558		3,378
Pet Nutrition	786		719
Total Net sales	$	4,344	$	4,097

The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:


	Three Months Ended
	March 31,
	2021		2020
Net sales
Oral Care	45	%	44	%
Personal Care	19	%	20	%
Home Care	18	%	18	%
Pet Nutrition	18	%	18	%
Total Net sales	100	%	100	%

Operating profit by segment was as follows:


	Three Months Ended
	March 31,
	2021		2020
Operating profit
Oral, Personal and Home Care
North America	$	202	$	258
Latin America	272		248
Europe	180		154
Asia Pacific	224		161
Africa/Eurasia	54		56
Total Oral, Personal and Home Care	932		877
Pet Nutrition	215		203
Corporate	(143)		(128)
Total Operating profit	$	1,004	$	952

Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of derivative instruments


	Assets					Liabilities
	Account	Fair Value				Account	Fair Value
Designated derivative instruments		March 31, 2021		December 31, 2020			March 31, 2021		December 31, 2020

Interest rate swap contracts	Other assets	$	11	$	14	Other liabilities	$	—	$	—

Forward-starting interest rate swaps	Other assets	51		5		Other liabilities	—		—
Foreign currency contracts	Other current assets	13		7		Other accruals	55		93

Commodity contracts	Other current assets	2		3		Other accruals	—		—
Total designated		$	77	$	29		$	55	$	93

Other financial instruments
Marketable securities	Other current assets	$	62	$	37
Total other financial instruments		$	62	$	37

Schedule of hedged item and cumulative adjustment to carrying amount

The following amounts were recorded on the Condensed Consolidated Balance Sheet related to the cumulative basis adjustment for fair value hedges as of:


	March 31, 2021		December 31, 2020
Long-term debt:
Carrying amount of hedged item	$	411	$	413
Cumulative hedging adjustment included in the carrying amount	11		14

Schedule of notional values

The following tables present the notional values as of:


	March 31, 2021
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	527	$	—	$	400	$	—	$	—	$	927
Cash Flow Hedges	825		—		—		600		19		1,444
Net Investment Hedges	604		4,164		—		—		—		4,768


	December 31, 2020
	Foreign Currency Contracts		Foreign Currency Debt		Interest Rate Swaps		Forward-Starting Interest Rate Swaps		Commodity Contracts		Total
Fair Value Hedges	$	589	$	—	$	400	$	—	$	—	$	989
Cash Flow Hedges	854		—		—		300		17		1,171
Net Investment Hedges	528		4,523		—		—		—		5,051

Schedule of gains (losses) recognized in Statements of Income

The following tables present the location and amount of gains (losses) recognized on the Company’s Condensed Consolidated Statements of Income:


	Three Months Ended March 31,
	2021						2020
	Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net		Cost of sales		Selling, general and administrative expenses		Interest (income) expense, net
Interest rate swaps designated as fair value hedges:
Derivative instrument	$	—	$	—	$	2	$	—	$	—	$	(12)
Hedged items	—		—		(2)		—		—		12
Foreign currency contracts designated as fair value hedges:
Derivative instrument	—		—		—		—		24		—
Hedged items	—		—		—		—		(24)		—
Foreign currency contracts designated as cash flow hedges:
Amount reclassified from OCI	(6)		—		—		2		—		—
Commodity contracts designated as cash flow hedges:
Amount reclassified from OCI	3		—		—		1		—		—
Total gain (loss) on hedges recognized in income	$	(3)	$	—	$	—	$	3	$	—	$	—

Schedule of gains (losses) included in Other Comprehensive Income

The following table presents the location and amount of unrealized gains (losses) included in OCI:


	Three Months Ended
	March 31,
	2021		2020
Foreign currency contracts designated as cash flow hedges:
Gain (loss) recognized in OCI	$	6	$	25

Forward-starting interest rate swaps designated as cash flow hedges:
Gain (loss) recognized in OCI	46		—

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	23		25
Gain (loss) on hedged items	(23)		(25)
Foreign currency debt designated as net investment hedges:
Gain (loss) on instruments	211		65
Gain (loss) on hedged items	(211)		(65)
Total unrealized gain (loss) on hedges recognized in OCI	$	53	$	25

Acquisitions - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 3,701	$ 3,824
Hello Product LLC
Business Acquisition [Line Items]
Payments to acquire business	$ 351
Purchase price consideration	351
Other intangible assets	160
Goodwill	171
Hello Product LLC \| North America
Business Acquisition [Line Items]
Goodwill	171
Hello Product LLC \| Trademarks
Business Acquisition [Line Items]
Other intangible assets	$ 115
Useful life	25 years
Hello Product LLC \| Customer Relationships
Business Acquisition [Line Items]
Other intangible assets	$ 45
Useful life	17 years

Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Jan. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 3,701	$ 3,824
Hello Product LLC
Business Acquisition [Line Items]
Receivables			$ 11
Inventories			13
Other assets and liabilities, net			(4)
Other intangible assets			160
Goodwill			171
Fair value of net assets acquired			$ 351

Restructuring and Related Implementation Charges - Narrative (Details) - Global Growth and Efficiency Program - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Payments for restructuring	$ 13	$ 30
Restructuring reserve	$ 19		$ 31

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventory, Net, Items Net of Reserve Alternative [Abstract]
Raw materials and supplies	$ 463	$ 454
Work-in-process	48	45
Finished goods	1,264	1,256
Total Inventories, net	1,775	1,755
Non-current inventory, net	(99)	(82)
Current Inventories, net	$ 1,676	$ 1,673

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net income attributable to Colgate-Palmolive Company
Basic EPS	$ 681	$ 715
Diluted EPS	$ 681	$ 715
Shares (millions)
Basic EPS (in shares)	848,600,000	856,900,000
Stock options and restricted stock units (in shares)	2,800,000	1,500,000
Diluted EPS (in shares)	851,400,000	858,400,000
Per Share
Basic EPS (in dollars per share)	$ 0.80	$ 0.83
Diluted EPS (in dollars per share)	$ 0.80	$ 0.83
Antidilutive securities excluded from computation of earnings per share (in shares)	2,721,084	20,965,110

Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Line Items]

Total Other comprehensive income (loss), net of tax

$ (113)

$ (321)

Cumulative translation adjustments

Accumulated Other Comprehensive Income (Loss) [Line Items]

(99)

(320)

Total Other comprehensive income (loss), net of tax

(99)

(320)

(155)

(339)

Retirement plans and other retiree benefits adjustments

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications, pretax

(19)

Reclassification from AOCI, pretax

Other comprehensive income (loss), before reclassifications, net of tax

(14)

Reclassification from AOCI, net of tax

Total Other comprehensive income (loss), net of tax

Gains (losses) on cash flow hedges

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications, pretax

Reclassification from AOCI, pretax

(3)

Other comprehensive income (loss), before reclassifications, net of tax

Reclassification from AOCI, net of tax

(2)

Total Other comprehensive income (loss), net of tax

Total Other comprehensive income (loss)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(40)

(279)