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Adoption of FASB Statement No.160 - Reconciliation to Previously Reported Amounts
Colgate adopted Financial Accounting Standards Board (FASB) Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51 (SFAS 160), on January 1, 2009. The adoption of SFAS 160 resulted in the following impact to Colgate's financial statements:
Prior period net income attributable to noncontrolling (minority) interests in less-than-wholly owned subsidiaries has been reclassified in the consolidated statements of income from Other (income) expense, net to a new line below Operating profit called "Net income attributable to noncontrolling interests";
The above reclassification impacts reported Operating profit, Income before income taxes, and the related Operating profit margin and Effective tax rate for each period presented;
The reclass impacts the Operating profit of the Greater Asia/Africa segment only; and
Prior period balances of accumulated undistributed earnings relating to noncontrolling interests in less-than-wholly owned subsidiaries have been reclassified from Other non-current liabilities to a component of shareholders' equity in the consolidated balance sheets.
The adoption of SFAS 160 had no impact on Colgate's reported net income or earnings per common share for any period.
Colgate is providing the accompanying schedules for 2008 and 2007 to enable comparison between 2009 financial statements and prior years.