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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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DELAWARE
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13-1815595
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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300 Park Avenue, New York, New York
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10022
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $1.00 par value
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New York Stock Exchange
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Floating Rate Notes due 2019
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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DOCUMENTS INCORPORATED BY REFERENCE:
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Documents
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Form 10-K Reference
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Portions of Proxy Statement for the 2016 Annual Meeting of Stockholders
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Part III, Items 10 through 14
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Part I
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Page
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|
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Item 1.
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Business
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Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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|
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Part II
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|
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6.
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Selected Financial Data
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8.
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Financial Statements and Supplementary Data
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A.
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Controls and Procedures
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Item 9B.
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Other Information
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Part III
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|
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Item 10.
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Directors, Executive Officers and Corporate Governance
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Item 11.
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Executive Compensation
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13.
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Certain Relationships and Related Transactions and Director Independence
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Item 14.
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Principal Accountant Fees and Services
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Part IV
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Item 15.
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Exhibits and Financial Statement Schedules
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|
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Signatures
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Name
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|
Age
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Date First Elected Officer
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Present Title
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Ian Cook
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|
63
|
|
1996
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|
Chairman of the Board
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|
|
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|
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President and Chief Executive Officer
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Fabian T. Garcia
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56
|
|
2003
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Chief Operating Officer
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|
|
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Global Innovation and Growth, Europe/South Pacific
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|
|
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and Hill
’
s Pet Nutrition
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Franck J. Moison
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62
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2002
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Chief Operating Officer
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|
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Emerging Markets and Business Development
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Dennis J. Hickey
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67
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1998
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Chief Financial Officer
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Jennifer M. Daniels
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52
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2014
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Chief Legal Officer and Secretary
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Victoria L. Dolan
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56
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2011
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Vice President and Corporate Controller
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John J. Huston
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61
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2002
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Senior Vice President
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|
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Chief of Staff
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Delia H. Thompson
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66
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2002
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Senior Vice President
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|
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Investor Relations
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Daniel B. Marsili
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55
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2005
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Senior Vice President
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|
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Global Human Resources
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P. Justin Skala
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56
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2008
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President
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|
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Colgate – North America and Global Sustainability
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Noel R. Wallace
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51
|
|
2009
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President
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|
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Colgate – Latin America
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Patricia Verduin
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56
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2011
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Chief Technology Officer
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Mukul Deoras
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52
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2015
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Chief Marketing Officer
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▪
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changes in exchange rates for foreign currencies, which may reduce the U.S. dollar value of revenues, profits and cash flows from non-U.S. markets or increase our supply costs, as measured in U.S. dollars, in those markets,
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▪
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exchange controls and other limits on our ability to import raw materials or finished product or to repatriate earnings from overseas,
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▪
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political or economic instability, social or labor unrest or changing macroeconomic conditions in our markets, including as a result of volatile commodity prices, including the price of oil,
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▪
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lack of well-established or reliable legal systems in certain countries where we operate,
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▪
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foreign ownership restrictions and the potential for nationalization or expropriation of property or other resources, and
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▪
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other foreign or domestic legal and regulatory requirements, including those resulting in potentially adverse tax consequences or the imposition of onerous trade restrictions, price controls, labor laws, profit controls or other government controls.
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▪
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identify, develop and fund technological innovations,
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▪
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obtain and maintain necessary patent and trademark protection and avoid infringing intellectual property rights of others,
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▪
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obtain approvals and registrations of regulated products, including from the FDA and other regulatory bodies in the U.S. and abroad, and
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▪
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anticipate and respond to consumer needs and preferences.
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▪
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environmental events,
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▪
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strikes and other labor disputes,
|
▪
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disruptions in logistics,
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▪
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loss or impairment of key manufacturing sites,
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▪
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loss of key suppliers,
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▪
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supplier capacity constraints,
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▪
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raw material and product quality or safety issues,
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▪
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industrial accidents or other occupational health and safety issues,
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▪
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the impact on our suppliers of tighter credit or capital markets, and
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▪
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natural disasters, including climatic events and earthquakes, acts of war or terrorism and other external factors over which we have no control.
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▪
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communicating within the Company and with other parties, including our customers and consumers,
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▪
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ordering and managing materials from suppliers,
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▪
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converting materials to finished products,
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▪
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receiving and processing orders from and shipping products to our customers,
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▪
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marketing products to consumers,
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▪
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collecting and storing customer, consumer, employee, investor and other stakeholder information and personal data,
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▪
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processing transactions, including but not limited to employee payroll, employee and retiree benefits and payments to customers,
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▪
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hosting, processing and sharing confidential and proprietary research, business plans and financial information,
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▪
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complying with legal, regulatory and tax requirements,
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▪
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providing data security, and
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▪
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handling other processes involved in managing our business.
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▪
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In December 2009, the Swiss competition law authority imposed a fine of $
6
million on the Company’s GABA subsidiary for alleged violations of restrictions on parallel imports into Switzerland, which the Company appealed. In January 2014, this appeal was denied. The Company is appealing before the Swiss Supreme Court.
|
▪
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In December 2010, the Italian competition law authority found that 16 consumer goods companies, including the Company’s Italian subsidiary, exchanged competitively sensitive information in the cosmetics sector, for which the Company’s Italian subsidiary was fined $
3
million. The Company is appealing the fine in the Italian courts.
|
▪
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In December 2014, the French competition law authority found that 13 consumer goods companies, including the Company’s French subsidiary, exchanged competitively sensitive information related to the French home care and personal care sectors, for which the Company’s French subsidiary was fined
$57
million. In addition, as a result of the Company’s acquisition of the Sanex personal care business in 2011 from Unilever N.V. and Unilever PLC (together with Unilever N.V., “Unilever”) pursuant to a Business and Share Sale and Purchase Agreement (the “Sale and Purchase Agreement”), the French competition law authority found that the Company’s French subsidiary, along with Hillshire Brands Company (formerly Sara Lee Corporation (“Sara Lee”)), were jointly and severally liable for fines of
$25
million assessed against Sara Lee’s French subsidiary. The Company is entitled to indemnification for this fine from Unilever as provided in the Sale and Purchase Agreement. The Company is appealing both fines in the French courts.
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▪
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In July 2014, the Greek competition law authority issued a statement of objections alleging the Company and its Greek subsidiary restricted parallel imports into Greece. The Company has responded to this statement of objections.
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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Month
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Total Number of Shares Purchased
(1)
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|
Average Price Paid per Share
|
|
Total Number of Shares Purchased
as Part of Publicly Announced Plans or Programs
(2)
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Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs
(3)
(in millions)
|
|||||
October 1 through 31, 2015
|
|
409,885
|
|
|
$
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63.64
|
|
|
347,300
|
|
|
3,990
|
|
November 1 through 30, 2015
|
|
3,160,000
|
|
|
$
|
66.29
|
|
|
3,160,000
|
|
|
3,780
|
|
December 1 through 31, 2015
|
|
1,582,297
|
|
|
$
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66.22
|
|
|
1,524,377
|
|
|
3,679
|
|
Total
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5,152,182
|
|
|
$
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66.06
|
|
|
5,031,677
|
|
|
|
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(1)
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Includes share repurchases under the 2015 Program and those associated with certain employee elections under the Company’s compensation and benefit programs.
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(2)
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The difference between the total number of shares purchased and the total number of shares purchased as part of publicly announced plans or programs is
120,505
shares, all of which relate to shares deemed surrendered to the Company to satisfy certain employee elections under the Company’s compensation and benefit programs.
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(3)
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Includes approximate dollar value of shares that were available to be purchased under the publicly announced plans or programs that were in effect as of December 31, 2015.
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ITEM 7.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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▪
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Expanding Commercial Hubs
|
▪
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Extending Shared Business Services and Streamlining Global Functions
|
▪
|
Optimizing Global Supply Chain and Facilities
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Gross profit, GAAP
|
|
$
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9,399
|
|
|
$
|
10,109
|
|
|
$
|
10,201
|
|
2012 Restructuring Program
|
|
20
|
|
|
29
|
|
|
32
|
|
|||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
4
|
|
|
15
|
|
|||
Gross profit, non-GAAP
|
|
$
|
9,419
|
|
|
$
|
10,142
|
|
|
$
|
10,248
|
|
|
|
2015
|
|
2014
|
|
Basis Point Change
|
|
2013
|
|
Basis Point Change
|
|||||
Gross profit margin, GAAP
|
|
58.6
|
%
|
|
58.5
|
%
|
|
10
|
|
|
58.6
|
%
|
|
(10
|
)
|
2012 Restructuring Program
|
|
0.1
|
|
|
0.2
|
|
|
|
|
0.2
|
|
|
|
||
Gross profit margin, non-GAAP
|
|
58.7
|
%
|
|
58.7
|
%
|
|
—
|
|
|
58.8
|
%
|
|
(10
|
)
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Selling, general and administrative expenses, GAAP
|
|
$
|
5,464
|
|
|
$
|
5,982
|
|
|
$
|
6,223
|
|
2012 Restructuring Program
|
|
(64
|
)
|
|
(62
|
)
|
|
(137
|
)
|
|||
Selling, general and administrative expenses, non-GAAP
|
|
$
|
5,400
|
|
|
$
|
5,920
|
|
|
$
|
6,086
|
|
|
|
2015
|
|
2014
|
|
Basis Point Change
|
|
2013
|
|
Basis Point Change
|
|||||
Selling, general and administrative expenses as a percentage of Net sales, GAAP
|
|
34.1
|
%
|
|
34.6
|
%
|
|
(50
|
)
|
|
35.7
|
%
|
|
(110
|
)
|
2012 Restructuring Program
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
|
|
(0.8
|
)
|
|
|
||
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP
|
|
33.7
|
%
|
|
34.3
|
%
|
|
(60
|
)
|
|
34.9
|
%
|
|
(60
|
)
|
Other (income) expense, net
|
|
2015
|
|
2014
|
|
2013
|
||||||
Amortization of intangible assets
|
|
$
|
33
|
|
|
$
|
32
|
|
|
$
|
32
|
|
2012 Restructuring Program
|
|
170
|
|
|
195
|
|
|
202
|
|
|||
Venezuela remeasurement charges
|
|
34
|
|
|
327
|
|
|
172
|
|
|||
Gain on sale of South Pacific laundry detergent business
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
|||
Charges for foreign competition law matters
|
|
14
|
|
|
41
|
|
|
23
|
|
|||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
—
|
|
|
3
|
|
|||
Equity (income)
|
|
(8
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|||
Other, net
|
|
6
|
|
|
(18
|
)
|
|
(5
|
)
|
|||
Total Other (income) expense, net
|
|
$
|
62
|
|
|
$
|
570
|
|
|
$
|
422
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Other (income) expense, net, GAAP
|
|
$
|
62
|
|
|
$
|
570
|
|
|
$
|
422
|
|
2012 Restructuring Program
|
|
(170
|
)
|
|
(195
|
)
|
|
(202
|
)
|
|||
Venezuela remeasurement charges
|
|
(34
|
)
|
|
(327
|
)
|
|
(172
|
)
|
|||
Gain on sale of South Pacific laundry detergent business
|
|
187
|
|
|
—
|
|
|
—
|
|
|||
Charges for foreign competition law matters
|
|
(14
|
)
|
|
(41
|
)
|
|
(23
|
)
|
|||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Other (income) expense, net, non-GAAP
|
|
$
|
31
|
|
|
$
|
7
|
|
|
$
|
22
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||
Operating profit, GAAP
|
|
$
|
2,789
|
|
|
$
|
3,557
|
|
|
(22
|
)%
|
|
$
|
3,556
|
|
|
—
|
%
|
Venezuela accounting change
|
|
1,084
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
2012 Restructuring Program
|
|
254
|
|
|
286
|
|
|
|
|
371
|
|
|
|
|||||
Venezuela remeasurement charges
|
|
34
|
|
|
327
|
|
|
|
|
172
|
|
|
|
|||||
Gain on sale of South Pacific laundry detergent business
|
|
(187
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
Charges for foreign competition law matters
|
|
14
|
|
|
41
|
|
|
|
|
23
|
|
|
|
|||||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
4
|
|
|
|
|
18
|
|
|
|
|||||
Operating profit, non-GAAP
|
|
$
|
3,988
|
|
|
$
|
4,215
|
|
|
(5
|
)%
|
|
$
|
4,140
|
|
|
2
|
%
|
|
|
2015
|
|
2014
|
|
Basis Point Change
|
|
2013
|
|
Basis Point Change
|
||||
Operating profit margin, GAAP
|
|
17.4
|
%
|
|
20.6
|
%
|
|
(320
|
)
|
|
20.4
|
%
|
|
20
|
Venezuela accounting change
|
|
6.8
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2012 Restructuring Program
|
|
1.6
|
|
|
1.7
|
|
|
|
|
2.2
|
|
|
|
|
Venezuela remeasurement charges
|
|
0.2
|
|
|
1.9
|
|
|
|
|
1.0
|
|
|
|
|
Gain on sale of South Pacific laundry detergent business
|
|
(1.2
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Charges for foreign competition law matters
|
|
0.1
|
|
|
0.2
|
|
|
|
|
0.1
|
|
|
|
|
Costs related to the sale of land in Mexico
|
|
—
|
|
|
—
|
|
|
|
|
0.1
|
|
|
|
|
Operating profit margin, non-GAAP
|
|
24.9
|
%
|
|
24.4
|
%
|
|
50
|
|
|
23.8
|
%
|
|
60
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Effective income tax rate, GAAP
|
|
44.0
|
%
|
|
33.8
|
%
|
|
32.4
|
%
|
Venezuela accounting change
(1)
|
|
(11.7
|
)
|
|
—
|
|
|
—
|
|
2012 Restructuring Program
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|
(0.7
|
)
|
Venezuela remeasurement charges
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
Gain on sale of South Pacific laundry detergent business
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
Charges for foreign competition law matters
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
Charges for foreign tax matters
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
—
|
|
Effective income tax rate, non-GAAP
|
|
31.3
|
%
|
|
31.5
|
%
|
|
31.7
|
%
|
(1)
|
See Executive Overview and Outlook above and Note 14, Venezuela to the Consolidated Financial Statements.
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||
Net income attributable to Colgate-Palmolive Company, GAAP
|
|
$
|
1,384
|
|
|
$
|
2,180
|
|
|
(37
|
)%
|
|
$
|
2,241
|
|
|
(3
|
)%
|
Venezuela accounting change
|
|
1,058
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
2012 Restructuring Program
|
|
183
|
|
|
208
|
|
|
|
|
278
|
|
|
|
|||||
Venezuela remeasurement charges
|
|
22
|
|
|
214
|
|
|
|
|
111
|
|
|
|
|||||
Gain on sale of South Pacific laundry detergent business
|
|
(120
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
Charges for foreign competition law matters
|
|
14
|
|
|
41
|
|
|
|
|
23
|
|
|
|
|||||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
3
|
|
|
|
|
12
|
|
|
|
|||||
Charges for foreign tax matters
|
|
15
|
|
|
66
|
|
|
|
|
—
|
|
|
|
|||||
Net income attributable to Colgate-Palmolive Company, non-GAAP
|
|
$
|
2,556
|
|
|
$
|
2,712
|
|
|
(6
|
)%
|
|
$
|
2,665
|
|
|
2
|
%
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||
Earnings per share, diluted, GAAP
|
|
$
|
1.52
|
|
|
$
|
2.36
|
|
|
(36
|
)%
|
|
$
|
2.38
|
|
|
(1
|
)%
|
Venezuela accounting change
|
|
1.16
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
2012 Restructuring Program
|
|
0.20
|
|
|
0.23
|
|
|
|
|
0.30
|
|
|
|
|||||
Venezuela remeasurement charges
|
|
0.02
|
|
|
0.23
|
|
|
|
|
0.12
|
|
|
|
|||||
Gain on sale of South Pacific laundry detergent business
|
|
(0.13
|
)
|
|
—
|
|
|
|
|
—
|
|
|
|
|||||
Charges for foreign competition law matters
|
|
0.02
|
|
|
0.04
|
|
|
|
|
0.03
|
|
|
|
|||||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
—
|
|
|
|
|
0.01
|
|
|
|
|||||
Charges for foreign tax matters
|
|
0.02
|
|
|
0.07
|
|
|
|
|
—
|
|
|
|
|||||
Earnings per share, diluted, non-GAAP
|
|
$
|
2.81
|
|
|
$
|
2.93
|
|
|
(4
|
)%
|
|
$
|
2.84
|
|
|
3
|
%
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
3,149
|
|
|
$
|
3,124
|
|
|
1.0
|
|
%
|
|
$
|
3,072
|
|
|
1.5
|
|
%
|
Operating profit
|
$
|
974
|
|
|
$
|
926
|
|
|
5
|
|
%
|
|
$
|
927
|
|
|
—
|
|
%
|
% of Net sales
|
30.9
|
%
|
|
29.6
|
%
|
|
130
|
|
bps
|
|
30.2
|
%
|
|
(60
|
)
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
4,327
|
|
|
$
|
4,769
|
|
|
(9.5
|
)
|
%
|
|
$
|
5,012
|
|
|
(5.0
|
)
|
%
|
Operating profit
|
$
|
1,209
|
|
|
$
|
1,279
|
|
|
(5
|
)
|
%
|
|
$
|
1,385
|
|
|
(8
|
)
|
%
|
% of Net sales
|
27.9
|
%
|
|
26.8
|
%
|
|
110
|
|
bps
|
|
27.6
|
%
|
|
(80
|
)
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
2,870
|
|
|
$
|
3,406
|
|
|
(15.5
|
)
|
%
|
|
$
|
3,396
|
|
|
0.5
|
|
%
|
Operating profit
|
$
|
750
|
|
|
$
|
877
|
|
|
(14
|
)
|
%
|
|
$
|
805
|
|
|
9
|
|
%
|
% of Net sales
|
26.1
|
%
|
|
25.7
|
%
|
|
40
|
|
bps
|
|
23.7
|
%
|
|
200
|
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
2,478
|
|
|
$
|
2,515
|
|
|
(1.5
|
)
|
%
|
|
$
|
2,472
|
|
|
1.5
|
|
%
|
Operating profit
|
$
|
753
|
|
|
$
|
736
|
|
|
2
|
|
%
|
|
$
|
698
|
|
|
5
|
|
%
|
% of Net sales
|
30.4
|
%
|
|
29.3
|
%
|
|
110
|
|
bps
|
|
28.2
|
%
|
|
110
|
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
998
|
|
|
$
|
1,208
|
|
|
(17.5
|
)
|
%
|
|
$
|
1,257
|
|
|
(4.0
|
)
|
%
|
Operating profit
|
$
|
178
|
|
|
$
|
235
|
|
|
(24
|
)
|
%
|
|
$
|
268
|
|
|
(12
|
)
|
%
|
% of Net sales
|
17.8
|
%
|
|
19.5
|
%
|
|
(170
|
)
|
bps
|
|
21.3
|
%
|
|
(180
|
)
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
||||||||||
Net sales
|
$
|
2,212
|
|
|
$
|
2,255
|
|
|
(2.0
|
)
|
%
|
|
$
|
2,211
|
|
|
2.0
|
|
%
|
Operating profit
|
$
|
612
|
|
|
$
|
592
|
|
|
3
|
|
%
|
|
$
|
563
|
|
|
5
|
|
%
|
% of Net sales
|
27.7
|
%
|
|
26.3
|
%
|
|
140
|
|
bps
|
|
25.5
|
%
|
|
80
|
|
bps
|
|
2015
|
|
2014
|
|
% Change
|
|
2013
|
|
% Change
|
|||||||||
Operating profit (loss)
|
$
|
(1,687
|
)
|
|
$
|
(1,088
|
)
|
|
55
|
%
|
|
$
|
(1,090
|
)
|
|
—
|
|
%
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
2012 Restructuring Program
|
|
$
|
(254
|
)
|
|
$
|
(286
|
)
|
|
$
|
(371
|
)
|
Charge for Venezuela accounting change
|
|
(1,084
|
)
|
|
—
|
|
|
—
|
|
|||
Venezuela remeasurement charges
|
|
(34
|
)
|
|
(327
|
)
|
|
(172
|
)
|
|||
Charges for foreign competition law matters
|
|
(14
|
)
|
|
(41
|
)
|
|
(23
|
)
|
|||
Costs related to the sale of land in Mexico
|
|
—
|
|
|
(4
|
)
|
|
(18
|
)
|
|||
Gain on sale of South Pacific laundry detergent business
|
|
187
|
|
|
—
|
|
|
—
|
|
|||
Corporate overhead costs and other, net
|
|
(488
|
)
|
|
(430
|
)
|
|
(506
|
)
|
|||
Total Corporate Operating profit (loss)
|
|
$
|
(1,687
|
)
|
|
$
|
(1,088
|
)
|
|
$
|
(1,090
|
)
|
▪
|
Becoming even stronger on the ground through the continued evolution and expansion of proven global and regional commercial capabilities, which have already been successfully implemented in a number of the Company
’
s operations around the world.
|
▪
|
Simplifying and standardizing how work gets done by increasing technology-enabled collaboration and taking advantage of global data and analytic capabilities, leading to smarter and faster decisions.
|
▪
|
Reducing structural costs to continue to increase the Company
’
s gross and operating profit.
|
▪
|
Building on Colgate
’
s current position of strength to enhance its leading market share positions worldwide and ensure sustained sales and earnings growth.
|
▪
|
Expanding Commercial Hubs - Building on the success of this structure already implemented in several divisions, continuing to cluster single-country subsidiaries into more efficient regional hubs, in order to drive smarter and faster decision-making, strengthen capabilities available on the ground and improve cost structure.
|
▪
|
Extending Shared Business Services and Streamlining Global Functions - Implementing the Company
’
s shared service organizational model, already successful in Europe, in all regions of the world. Initially focused on finance and accounting, these shared services will be expanded to additional functional areas to streamline global functions.
|
▪
|
Optimizing Global Supply Chain and Facilities - Continuing to optimize manufacturing efficiencies, global warehouse networks and office locations for greater efficiency, lower cost and speed to bring innovation to market.
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cost of sales
|
|
$
|
20
|
|
|
$
|
29
|
|
|
$
|
32
|
|
Selling, general and administrative expenses
|
|
64
|
|
|
62
|
|
|
137
|
|
|||
Other (income) expense, net
|
|
170
|
|
|
195
|
|
|
202
|
|
|||
Total 2012 Restructuring Program charges, pretax
|
|
$
|
254
|
|
|
$
|
286
|
|
|
$
|
371
|
|
|
|
|
|
|
|
|
||||||
Total 2012 Restructuring Program charges, aftertax
|
|
$
|
183
|
|
|
$
|
208
|
|
|
$
|
278
|
|
|
|
|
|
|
|
|
Program-to-date
|
||||
|
2015
|
|
2014
|
|
2013
|
|
Accumulated Charges
|
||||
North America
|
21
|
%
|
|
11
|
%
|
|
11
|
%
|
|
13
|
%
|
Latin America
|
3
|
%
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
Europe/South Pacific
|
15
|
%
|
|
20
|
%
|
|
28
|
%
|
|
24
|
%
|
Asia
|
3
|
%
|
|
3
|
%
|
|
—
|
%
|
|
2
|
%
|
Africa/Eurasia
|
5
|
%
|
|
3
|
%
|
|
7
|
%
|
|
5
|
%
|
Hill
’
s Pet Nutrition
|
5
|
%
|
|
10
|
%
|
|
8
|
%
|
|
7
|
%
|
Corporate
|
48
|
%
|
|
49
|
%
|
|
42
|
%
|
|
45
|
%
|
|
Cumulative Charges
|
||
|
as of December 31, 2015
|
||
Employee-Related Costs
|
$
|
404
|
|
Incremental Depreciation
|
71
|
|
|
Asset Impairments
|
7
|
|
|
Other
|
518
|
|
|
Total
|
$
|
1,000
|
|
|
|
Employee-Related
Costs
|
|
Incremental
Depreciation
|
|
Asset
Impairments
|
|
Other
|
|
Total
|
||||||||||
Balance at January 1, 2013
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
89
|
|
Charges
|
|
144
|
|
|
26
|
|
|
1
|
|
|
200
|
|
|
371
|
|
|||||
Cash payments
|
|
(97
|
)
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
(169
|
)
|
|||||
Charges against assets
|
|
(17
|
)
|
|
(26
|
)
|
|
(1
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Foreign exchange
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
(91
|
)
|
|||||
Balance at December 31, 2013
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
158
|
|
Charges
|
|
73
|
|
|
25
|
|
|
1
|
|
|
187
|
|
|
286
|
|
|||||
Cash payments
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
(212
|
)
|
|||||
Charges against assets
|
|
(5
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|
—
|
|
|
(31
|
)
|
|||||
Foreign exchange
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(9
|
)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance at December 31, 2014
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
107
|
|
|
$
|
192
|
|
Charges
|
|
109
|
|
|
20
|
|
|
5
|
|
|
120
|
|
|
254
|
|
|||||
Cash payments
|
|
(85
|
)
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|
(179
|
)
|
|||||
Charges against assets
|
|
(17
|
)
|
|
(20
|
)
|
|
(5
|
)
|
|
—
|
|
|
(42
|
)
|
|||||
Foreign exchange
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(10
|
)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance at December 31, 2015
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
131
|
|
|
$
|
215
|
|
Year ended December 31, 2015
|
Organic
Sales Growth (Non-GAAP) |
Foreign
Exchange
Impact
|
Acquisitions and Divestments
Impact
|
Net Sales Growth
(GAAP)
|
Oral, Personal and Home Care
|
|
|
|
|
North America
|
2.0%
|
(1.0)%
|
—%
|
1.0%
|
Latin America
|
9.5%
|
(19.0)%
|
—%
|
(9.5)%
|
Europe/South Pacific
|
1.0%
|
(14.5)%
|
(2.0)%
|
(15.5)%
|
Asia
|
2.5%
|
(4.5)%
|
0.5%
|
(1.5)%
|
Africa/Eurasia
|
6.0%
|
(23.5)%
|
—%
|
(17.5)%
|
Total Oral, Personal and Home Care
|
4.5%
|
(12.0)%
|
(0.5)%
|
(8.0)%
|
Pet Nutrition
|
6.0%
|
(8.0)%
|
—%
|
(2.0)%
|
Total Company
|
5.0%
|
(11.5)%
|
(0.5)%
|
(7.0)%
|
Year ended December 31, 2014
|
Organic
Sales Growth
(Non-GAAP)
|
Foreign
Exchange
Impact
|
Acquisitions and Divestments
Impact
|
Net Sales Growth
(GAAP)
|
Oral, Personal and Home Care
|
|
|
|
|
North America
|
2.5%
|
(1.0)%
|
—%
|
1.5%
|
Latin America
|
9.0%
|
(14.5)%
|
0.5%
|
(5.0)%
|
Europe/South Pacific
|
1.5%
|
(0.5)%
|
(0.5)%
|
0.5%
|
Asia
|
4.5%
|
(3.0)%
|
—%
|
1.5%
|
Africa/Eurasia
|
7.0%
|
(11.0)%
|
—%
|
(4.0)%
|
Total Oral, Personal and Home Care
|
5.0%
|
(6.0)%
|
—%
|
(1.0)%
|
Pet Nutrition
|
4.0%
|
(2.0)%
|
—%
|
2.0%
|
Total Company
|
5.0%
|
(6.0)%
|
—%
|
(1.0)%
|
|
|
2015
|
|
2014
|
||||||||||||||
|
|
Weighted Average Interest Rate
|
|
Maturities
|
|
Outstanding
|
|
Weighted Average
Interest Rate
|
|
Maturities
|
|
Outstanding
|
||||||
Payable to banks
|
|
1.8
|
%
|
|
2016
|
|
$
|
4
|
|
|