SEC Filing | Colgate-Palmolive Company

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cl-20210630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________

FORM 10-Q

_________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from________ to________ .

Commission File Number: 1-644

COLGATE-PALMOLIVE COMPANY

(Exact name of registrant as specified in its charter)


Delaware			13-1815595
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

300 Park Avenue

New York,

New York

10022

(Address of principal executive offices)

(Zip Code)

(212) 310-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

New York Stock Exchange

0.000% Notes due 2021

CL21A

New York Stock Exchange

0.500% Notes due 2026

CL26

New York Stock Exchange

1.375% Notes due 2034

CL34

New York Stock Exchange

0.875% Notes due 2039

CL39

New York Stock Exchange

NO CHANGES

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class

Shares Outstanding

Date

Common stock, $1.00 par value

843,513,490

June 30, 2021

PART I. FINANCIAL INFORMATION

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Income

(Dollars in Millions Except Per Share Amounts)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net sales	$	4,260	$	3,897	$	8,604	$	7,994
Cost of sales	1,704		1,528		3,411		3,160
Gross profit	2,556		2,369		5,193		4,834
Selling, general and administrative expenses	1,568		1,395		3,173		2,868
Other (income) expense, net	(8)		28		20		68
Operating profit	996		946		2,000		1,898
Non-service related postretirement costs	18		20		36		41
Interest (income) expense, net	25		35		54		71
Income before income taxes	953		891		1,910		1,786
Provision for income taxes	212		216		441		363
Net income including noncontrolling interests	741		675		1,469		1,423
Less: Net income attributable to noncontrolling interests	38		40		85		73
Net income attributable to Colgate-Palmolive Company	$	703	$	635	$	1,384	$	1,350

Earnings per common share, basic	$	0.83	$	0.74	$	1.63	$	1.58

Earnings per common share, diluted	$	0.83	$	0.74	$	1.63	$	1.57

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Dollars in Millions)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net income including noncontrolling interests	$	741	$	675	$	1,469	$	1,423
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments	106		68		(52)		(287)
Retirement plans and other retiree benefit adjustments	16		14		18		30
Gains (losses) on cash flow hedges	(35)		(21)		8		(3)
Total Other comprehensive income (loss), net of tax	87		61		(26)		(260)
Total Comprehensive income including noncontrolling interests	828		736		1,443		1,163
Less: Net income attributable to noncontrolling interests	38		40		85		73
Less: Cumulative translation adjustments attributable to noncontrolling interests	—		3		(3)		(13)
Total Comprehensive income attributable to noncontrolling interests	38		43		82		60
Total Comprehensive income attributable to Colgate-Palmolive Company	$	790	$	693	$	1,361	$	1,103

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	June 30, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	937	$	888
Receivables (net of allowances of $85 and $89, respectively)	1,443		1,264
Inventories	1,700		1,673
Other current assets	572		513
Total current assets	4,652		4,338
Property, plant and equipment:
Cost	8,848		8,751
Less: Accumulated depreciation	(5,183)		(5,035)
	3,665		3,716
Goodwill	3,753		3,824
Other intangible assets, net	2,787		2,894
Deferred income taxes	283		291
Other assets	859		857
Total assets	$	15,999	$	15,920
Liabilities and Shareholders’ Equity
Current Liabilities
Notes and loans payable	$	5	$	258
Current portion of long-term debt	10		9
Accounts payable	1,272		1,393
Accrued income taxes	383		403
Other accruals	2,533		2,341
Total current liabilities	4,203		4,404
Long-term debt	7,951		7,334
Deferred income taxes	421		426
Other liabilities	2,562		2,655
Total liabilities	15,137		14,819
Shareholders’ Equity
Common stock	1,466		1,466
Additional paid-in capital	3,085		2,969
Retained earnings	23,946		23,699
Accumulated other comprehensive income (loss)	(4,368)		(4,345)
Unearned compensation	—		(1)
Treasury stock, at cost	(23,665)		(23,045)
Total Colgate-Palmolive Company shareholders’ equity	464		743
Noncontrolling interests	398		358
Total equity	862		1,101
Total liabilities and equity	$	15,999	$	15,920

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Cash Flows

(Dollars in Millions)

(Unaudited)


	Six Months Ended
	June 30,
	2021		2020
Operating Activities
Net income including noncontrolling interests	$	1,469	$	1,423
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization	274		266
Restructuring and termination benefits, net of cash	(15)		(35)
Stock-based compensation expense	58		32
Deferred income taxes	(65)		(147)

Cash effects of changes in:
Receivables	(188)		121
Inventories	(39)		(176)
Accounts payable and other accruals	(254)		347
Other non-current assets and liabilities	(15)		(37)
Net cash provided by (used in) operations	1,225		1,794
Investing Activities
Capital expenditures	(237)		(159)
Purchases of marketable securities and investments	(80)		(48)
Proceeds from sale of marketable securities and investments	46		42
Payment for acquisitions, net of cash acquired	—		(352)
Other investing activities	(18)		—
Net cash provided by (used in) investing activities	(289)		(517)
Financing Activities
Short-term borrowing (repayment) less than 90 days, net	451		(493)
Proceeds from issuance of debt	25		—
Dividends paid	(796)		(784)
Purchases of treasury shares	(713)		(228)
Proceeds from exercise of stock options	151		353
Other financing activities	(2)		11
Net cash provided by (used in) financing activities	(884)		(1,141)
Effect of exchange rate changes on Cash and cash equivalents	(3)		(22)
Net increase (decrease) in Cash and cash equivalents	49		114
Cash and cash equivalents at beginning of the period	888		883
Cash and cash equivalents at end of the period	$	937	$	997
Supplemental Cash Flow Information
Income taxes paid	$	542	$	349

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

(Unaudited)


Three Months Ended June 30, 2021
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, March 31, 2021	$	1,466	$	3,011	$	—	$	(23,384)	$	23,624	$	(4,455)	$	401
Net income	—		—		—		—		703		—		38
Other comprehensive income (loss), net of tax	—		—		—		—		—		87		—
Dividends ($0.45 per share)	—		—		—		—		(381)		—		(42)
Stock-based compensation expense	—		20		—		—		—		—		—
Shares issued for stock options	—		54		—		58		—		—		—
Shares issued for restricted stock units	—		(1)		—		1		—		—		—
Treasury stock acquired	—		—		—		(341)		—		—		—

Other	—		1		—		1		—		—		1
Balance, June 30, 2021	$	1,466	$	3,085	$	—	$	(23,665)	$	23,946	$	(4,368)	$	398


Three Months Ended June 30, 2020
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, March 31, 2020	$	1,466	$	2,623	$	(1)	$	(22,104)	$	22,481	$	(4,578)	$	454
Net income	—		—		—		—		635		—		40
Other comprehensive income (loss), net of tax	—		—		—		—		—		58		3
Dividends ($0.44 per share)	—		—		—		—		(386)		—		(33)
Stock-based compensation expense	—		16		—		—		—		—		—
Shares issued for stock options	—		27		—		33		—		—		—
Shares issued for restricted stock units	—		(2)		—		2		—		—		—
Treasury stock acquired	—		—		—		(8)		—		—		—
Other	—		2				2		1		1		—
Balance, June 30, 2020	$	1,466	$	2,666	$	(1)	$	(22,075)	$	22,731	$	(4,519)	$	464

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,207 at June 30, 2021 ($3,402 at June 30, 2020) and $3,313 at March 31, 2021 ($3,467 at March 31, 2020), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,160 at June 30, 2021 ($1,108 at June 30, 2020) and $1,176 at March 31, 2021 ($1,122 at March 31, 2020), respectively.

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

(Unaudited)


Six Months Ended June 30, 2021
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, December 31, 2020	$	1,466	$	2,969	$	(1)	$	(23,045)	$	23,699	$	(4,345)	$	358
Net income	—		—		—		—		1,384		—		85
Other comprehensive income (loss), net of tax	—		—		—		—		—		(23)		(3)
Dividends ($1.34 per share)*	—		—		—		—		(1,137)		—		(42)
Stock-based compensation expense	—		58		—		—		—		—		—
Shares issued for stock options	—		67		—		80		—		—		—
Shares issued for restricted stock units	—		(12)		—		12		—		—		—
Treasury stock acquired	—		—		—		(713)		—		—		—

Other	—		3		1		1		—		—		—
Balance, June 30, 2021	$	1,466	$	3,085	$	—	$	(23,665)	$	23,946	$	(4,368)	$	398


Six Months Ended June 30, 2020
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, December 31, 2019	$	1,466	$	2,488	$	(2)	$	(22,063)	$	22,501	$	(4,273)	$	441
Net income	—		—		—		—		1,350		—		73
Other comprehensive income (loss), net of tax	—		—		—		—		—		(247)		(13)
Dividends ($1.31 per share)*	—		—		—		—		(1,124)		—		(37)
Stock-based compensation expense	—		32		—		—		—		—		—
Shares issued for stock options	—		160		—		197		—		—		—
Shares issued for restricted stock units	—		(17)		—		17		—		—		—
Treasury stock acquired	—		—		—		(228)		—		—		—

Other	—		3		1		2		4		1		—
Balance, June 30, 2020	$	1,466	$	2,666	$	(1)	$	(22,075)	$	22,731	$	(4,519)	$	464

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,207 at June 30, 2021 ($3,402 at June 30, 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 $1,160 at June 30, 2021 ($1,108 at June 30, 2020) and $1,178 at December 31, 2020 ($1,138 at December 31, 2019), respectively.

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

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

1. 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”).

2. 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.

3. Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which 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. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition due to reference rate reform. These ASUs were effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The guidance has not had and is not expected 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 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.” This ASU 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.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

4. 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.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

5. 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 six months ended June 30, 2021 and June 30, 2020, the Company made cash payments of $15 and $35, respectively, related to projects approved prior to the conclusion of the Global Growth and Efficiency Program.

The accrual balance at June 30, 2021 and December 31, 2020 was $17 and $31, respectively.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

6. Inventories

Inventories by major class are as follows:


	June 30, 2021		December 31, 2020
Raw materials and supplies	$	470	$	454
Work-in-process	48		45
Finished goods	1,275		1,256
Total Inventories, net	$	1,793	$	1,755
Non-current inventory, net	$	(93)	$	(82)
Current Inventories, net	$	1,700	$	1,673

7. Earnings Per Share

For the three months ended June 30, 2021 and 2020, earnings per share were as follows:


	Three Months Ended
	June 30, 2021					June 30, 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	$	703	845.6	$	0.83	$	635	857.4	$	0.74
Stock options and restricted stock units			3.8					1.5
Diluted EPS	$	703	849.4	$	0.83	$	635	858.9	$	0.74

For the three months ended June 30, 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 1,634,728 and 19,291,359, respectively.

For the six months ended June 30, 2021 and 2020, earnings per share were as follows:


	Six Months Ended
	June 30, 2021					June 30, 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	$	1,384	847.0	$	1.63	$	1,350	857.1	$	1.58
Stock options and restricted stock units			3.4					1.5
Diluted EPS	$	1,384	850.4	$	1.63	$	1,350	858.6	$	1.57

For the six months ended June 30, 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 2,453,048 and 19,717,653, respectively.

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 the number of 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.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

8. Other Comprehensive Income (Loss)

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended June 30, 2021 and 2020 were as follows:


	2021				2020
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	71	$	106	$	27	$	65
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	(3)		(1)		—		—
Amortization of net actuarial loss, transition and prior service costs (1)	20		17		23		14
Retirement plans and other retiree benefits adjustments	17		16		23		14
Cash flow hedges:
Unrealized gains (losses) on cash flow hedges	(49)		(38)		(22)		(18)
Reclassification of (gains) losses into net earnings on cash flow hedges (2)	4		3		(3)		(3)
Gains (losses) on cash flow hedges	(45)		(35)		(25)		(21)
Total Other comprehensive income (loss)	$	43	$	87	$	25	$	58

(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.

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the six months ended June 30, 2021 and 2020 were as follows:


	2021				2020
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	(28)	$	(49)	$	(293)	$	(274)
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	(22)		(15)		2		1
Amortization of net actuarial loss, transition and prior service costs (1)	42		33		40		29
Retirement plans and other retiree benefits adjustments	20		18		42		30
Cash flow hedges:
Unrealized gains (losses) on cash flow hedges	4		3		3		2
Reclassification of (gains) losses into net earnings on cash flow hedges (2)	7		5		(6)		(5)
Gains (losses) on cash flow hedges	11		8		(3)		(3)
Total Other comprehensive income (loss)	$	3	$	(23)	$	(254)	$	(247)

(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 OCI attributable to Noncontrolling interests.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

9. Retirement Plans and Other Retiree Benefits

Components of Net periodic benefit cost for the three and six months ended June 30, 2021 and 2020 were as follows:


	Three Months Ended June 30,
	Pension Benefits								Other Retiree Benefits
	United States				International

	2021		2020		2021		2020		2021		2020
Service cost	$	1	$	—	$	4	$	3	$	7	$	5
Interest cost	15		18		4		4		9		8
Expected return on plan assets	(26)		(27)		(4)		(5)		—		(1)
Amortization of actuarial loss (gain)	10		13		3		4		7		6
Net periodic benefit cost	$	—	$	4	$	7	$	6