Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-644 | ||
Entity Registrant Name | COLGATE-PALMOLIVE COMPANY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-1815595 | ||
Entity Address, Address Line One | 300 Park Avenue | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 310-2000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 61.3 | ||
Entity Common Stock, Shares Outstanding | 855,029,777 | ||
Documents Incorporated by Reference | Documents Form 10-K Reference Portions of Proxy Statement for the 2020 Annual Meeting of Stockholders Part III, Items 10 through 14 | ||
Entity Central Index Key | 0000021665 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | CL | ||
Security Exchange Name | NYSE | ||
0.000% Notes due 2021 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.000% Notes due 2021 | ||
Trading Symbol | CL21A | ||
Security Exchange Name | NYSE | ||
0.500% Notes Due 2026 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.500% Notes due 2026 | ||
Trading Symbol | CL26 | ||
Security Exchange Name | NYSE | ||
1.375% Notes Due 2034 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.375% Notes due 2034 | ||
Trading Symbol | CL34 | ||
Security Exchange Name | NYSE | ||
0.875% Notes due 2039 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.875% Notes due 2039 | ||
Trading Symbol | CL39 | ||
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 15,693 | $ 15,544 | $ 15,454 |
Cost of sales | 6,368 | 6,313 | 6,174 |
Gross profit | 9,325 | 9,231 | 9,280 |
Selling, general and administrative expenses | 5,575 | 5,389 | 5,400 |
Other (income) expense, net | 196 | 148 | 173 |
Operating profit | 3,554 | 3,694 | 3,707 |
Non-service related postretirement costs | 108 | 87 | 118 |
Interest (income) expense, net | 145 | 143 | 102 |
Income before income taxes | 3,301 | 3,464 | 3,487 |
Provision for income taxes | 774 | 906 | 1,313 |
Net income including noncontrolling interests | 2,527 | 2,558 | 2,174 |
Less: Net income attributable to noncontrolling interests | 160 | 158 | 150 |
Net income attributable to Colgate-Palmolive Company | $ 2,367 | $ 2,400 | $ 2,024 |
Earnings per common share, basic (in dollars per share) | $ 2.76 | $ 2.76 | $ 2.30 |
Earnings per common share, diluted (in dollars per share) | $ 2.75 | $ 2.75 | $ 2.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $ 2,527 | $ 2,558 | $ 2,174 |
Other comprehensive income (loss), net of tax: | |||
Cumulative translation adjustments | 25 | (237) | 302 |
Retirement plan and other retiree benefit adjustments | (100) | 38 | 54 |
Gains (losses) on cash flow hedges | (12) | ||
Gains (losses) on cash flow hedges | 10 | (14) | |
Total Other comprehensive income (loss), net of tax | (87) | (189) | 342 |
Total Comprehensive income including noncontrolling interests | 2,440 | 2,369 | 2,516 |
Less: Net income attributable to noncontrolling interests | 160 | 158 | 150 |
Less: Cumulative translation adjustments attributable to noncontrolling interests | (2) | (19) | 17 |
Total Comprehensive income attributable to noncontrolling interests | 158 | 139 | 167 |
Total Comprehensive income attributable to Colgate-Palmolive Company | $ 2,282 | $ 2,230 | $ 2,349 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 883 | $ 726 |
Receivables (net of allowances of $76 and $82, respectively) | 1,440 | 1,400 |
Inventories | 1,400 | 1,250 |
Other current assets | 456 | 417 |
Total current assets | 4,179 | 3,793 |
Property, plant and equipment, net | 3,750 | 3,881 |
Goodwill | 3,508 | 2,530 |
Other intangible assets, net | 2,667 | 1,637 |
Deferred income taxes | 177 | 152 |
Other assets | 753 | 168 |
Total assets | 15,034 | 12,161 |
Current Liabilities | ||
Notes and loans payable | 260 | 12 |
Current portion of long-term debt | 254 | 0 |
Accounts payable | 1,237 | 1,222 |
Accrued income taxes | 370 | 411 |
Other accruals | 1,917 | 1,696 |
Total current liabilities | 4,038 | 3,341 |
Long-term debt | 7,333 | 6,354 |
Deferred income taxes | 507 | 235 |
Other liabilities | 2,598 | 2,034 |
Total liabilities | 14,476 | 11,964 |
Commitments and contingent liabilities | ||
Shareholders’ Equity | ||
Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued) | 1,466 | 1,466 |
Additional paid-in capital | 2,488 | 2,204 |
Retained earnings | 22,501 | 21,615 |
Accumulated other comprehensive income (loss) | (4,273) | (4,188) |
Unearned compensation | (2) | (3) |
Treasury stock, at cost | (22,063) | (21,196) |
Total Colgate-Palmolive Company shareholders’ equity | 117 | (102) |
Noncontrolling interests | 441 | 299 |
Total equity | 558 | 197 |
Total liabilities and equity | $ 15,034 | $ 12,161 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Allowance for doubtful accounts receivable, current | $ 76 | $ 82 |
Shareholders’ Equity | ||
Common Stock, Par Value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common Stock, Shares Issued (in shares) | 1,465,706,360 | 1,465,706,360 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Unearned Compensation | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
Beginning balance at Dec. 31, 2016 | $ 1,466 | $ 1,691 | $ (7) | $ (19,135) | $ 19,922 | $ (4,180) | $ 260 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 2,174 | 2,024 | 150 | ||||||
Other comprehensive income (loss), net of tax | 342 | 325 | 17 | ||||||
Dividends (in dollars per share) | [1] | (1,405) | (124) | ||||||
Stock-based compensation expense | 127 | ||||||||
Shares issued for stock options | 197 | 313 | |||||||
Shares issued for restricted stock awards | (34) | 34 | |||||||
Treasury stock acquired | (1,399) | ||||||||
Other | 3 | 2 | 6 | (10) | |||||
Ending balance at Dec. 31, 2017 | 1,466 | 1,984 | (5) | (20,181) | 20,531 | (3,855) | 303 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,558 | 2,400 | 158 | ||||||
Other comprehensive income (loss), net of tax | (189) | (170) | (19) | ||||||
Dividends (in dollars per share) | [1] | (1,448) | (143) | ||||||
Stock-based compensation expense | 109 | ||||||||
Shares issued for stock options | 137 | 190 | |||||||
Shares issued for restricted stock awards | (31) | 31 | |||||||
Treasury stock acquired | (1,238) | ||||||||
Other | [2] | 5 | 2 | 2 | 132 | (163) | |||
Ending balance at Dec. 31, 2018 | 197 | 1,466 | 2,204 | (3) | (21,196) | 21,615 | (4,188) | 299 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,527 | 2,367 | 160 | ||||||
Other comprehensive income (loss), net of tax | (87) | (85) | (2) | ||||||
Dividends (in dollars per share) | [1] | (1,472) | (141) | ||||||
Stock-based compensation expense | 100 | ||||||||
Shares issued for stock options | 210 | 305 | |||||||
Shares issued for restricted stock awards | (29) | 29 | |||||||
Noncontrolling interests assumed through acquisition | 125 | ||||||||
Treasury stock acquired | (1,202) | ||||||||
Other | 3 | 1 | 1 | (9) | |||||
Ending balance at Dec. 31, 2019 | $ 558 | $ 1,466 | $ 2,488 | $ (2) | $ (22,063) | $ 22,501 | $ (4,273) | $ 441 | |
[1] | * Two dividends were declared in each of the first quarters of 2019, 2018 and 2017 | ||||||||
[2] | (1) As a result of the early adoption of ASU 2018-02, the Company reclassified the stranded tax effects in Accumulated other comprehensive income (loss) resulting from the TCJA to Retained earnings. See Note 2, Summary of Significant Accounting Policies for additional information. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity Parenthetical - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 1.71 | $ 1.66 | $ 1.59 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income including noncontrolling interests | $ 2,527 | $ 2,558 | $ 2,174 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||
Depreciation and amortization | 519 | 511 | 475 |
Restructuring and termination benefits, net of cash | 18 | (7) | 91 |
Stock-based compensation expense | 100 | 109 | 127 |
Charge for U.S. tax reform | 0 | 80 | 275 |
Deferred income taxes | 17 | 27 | 108 |
Voluntary benefit plan contributions | (113) | (67) | (81) |
Cash effects of changes in: | |||
Receivables | 19 | (79) | (15) |
Inventories | (77) | (58) | (8) |
Accounts payable and other accruals | 36 | 18 | (96) |
Other non-current assets and liabilities | 87 | (36) | 4 |
Net cash provided by operations | 3,133 | 3,056 | 3,054 |
Investing Activities | |||
Capital expenditures | (335) | (436) | (553) |
Sale of property and non-core product lines | 1 | 1 | 44 |
Purchases of marketable securities and investments | (184) | (169) | (347) |
Proceeds from sale of marketable securities and investments | 131 | 156 | 391 |
Payment for acquisitions, net of cash acquired | (1,711) | (728) | 0 |
Other | (1) | 6 | (6) |
Net cash used in investing activities | (2,099) | (1,170) | (471) |
Financing Activities | |||
Principal payments on debt | (6,611) | (7,355) | (4,808) |
Proceeds from issuance of debt | 8,059 | 7,176 | 4,779 |
Dividends paid | (1,614) | (1,591) | (1,529) |
Purchases of treasury shares | (1,202) | (1,238) | (1,399) |
Proceeds from exercise of stock options | 498 | 329 | 507 |
Net cash used in financing activities | (870) | (2,679) | (2,450) |
Effect of exchange rate changes on Cash and cash equivalents | (7) | (16) | 87 |
Net (decrease) increase in Cash and cash equivalents | 157 | (809) | 220 |
Cash and cash equivalents at beginning of year | 726 | 1,535 | 1,315 |
Cash and cash equivalents at end of year | 883 | 726 | 1,535 |
Supplemental Cash Flow Information | |||
Income taxes paid | 803 | 847 | 1,037 |
Interest paid | $ 185 | $ 194 | $ 150 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The Company manufactures and markets a wide variety of products in the U.S. and around the world in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners and other similar items. These products are sold primarily to a variety of traditional and eCommerce retailers, wholesalers and distributors worldwide. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. The principal customers for Pet Nutrition products are authorized pet supply retailers, veterinarians and eCommerce retailers. Principal global and regional trademarks include Colgate, Palmolive, elmex, meridol, Tom’s of Maine, Sorriso, Hello, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sanex, Filorga, Elta MD, PCA Skin, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The Company’s principal classes of products accounted for the following percentages of worldwide Net sales for the past three years: 2019 2018 2017 Oral Care 46 % 47 % 48 % Personal Care 20 % 20 % 19 % Home Care 18 % 18 % 18 % Pet Nutrition 16 % 15 % 15 % Total 100 % 100 % 100 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. The Company’s investments in consumer products companies with interests ranging between 20% and 50% , where the Company has significant influence over the investee, are accounted for using the equity method. Net income (loss) from such investments is recorded in Other (income) expense, net in the Consolidated Statements of Income. As of December 31, 2019 and 2018 , equity method investments included in Other assets in the Consolidated Balance Sheets were $50 and $46 , respectively. Unrelated third parties hold the remaining ownership interests in these investments. Investments with less than a 20% interest are recorded at cost and periodically adjusted based on observable price changes or quoted market prices in active markets, if applicable. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. As such, the most significant uncertainty in the Company’s assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairments, uncertain tax positions, tax valuation allowances, legal and other contingency reserves and charges related to U.S. tax reform (see Note 11 , Income Taxes ). Additionally, the Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments and retirement plan assets. 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. Actual results could ultimately differ from those estimates. Revenue Recognition The Company’s revenue contracts represent a single performance obligation to sell its products to trade customers. Sales are recorded at the time control of the products is transferred to trade customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of trade customers to direct the “use of” and “obtain” the benefit from our products. In evaluating the timing of the transfer of control of products to trade customers, the Company considers several control indicators, including significant risks and rewards of products, the Company’s right to payment and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to trade customers. Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration. Variable consideration includes expected sales returns and the cost of current and continuing promotional programs. Current promotional programs primarily include product listing allowances and co-operative advertising arrangements. Continuing promotional programs are predominantly consumer coupons and volume-based sales incentive arrangements. The cost of promotional programs is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. Adjustments to the cost of promotional programs in subsequent periods are generally not material, as the Company’s promotional programs are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Sales returns are generally accepted at the Company’s discretion and are not material to the Company’s Consolidated Financial Statements. The Company’s contracts with trade customers do not have significant financing components or non-cash consideration and the Company does not have unbilled revenue or significant amounts of prepayments from customers. The Company records Net sales excluding taxes collected on its sales to its trade customers. Shipping and handling activities are accounted for as contract fulfillment costs and classified as Selling, general and administrative expenses. Shipping and Handling Costs Shipping and handling costs are classified as Selling, general and administrative expenses and were $1,275 , $1,255 and $1,183 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Marketing Costs The Company markets its products through advertising and other promotional activities. Advertising costs are included in Selling, general and administrative expenses and are expensed as incurred. Certain consumer and trade promotional programs, such as consumer coupons, are recorded as a reduction of sales. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Inventories The cost of approximately 80% of inventories is determined using the first-in, first-out (“FIFO”) method, which is stated at the lower of cost or net realizable value. The cost of all other inventories, in the U.S. and Mexico, is determined using the last-in, first-out (“LIFO”) method, which is stated at the lower of cost or market. Inventories in excess of one year of forecasted sales are classified in the Consolidated Balance Sheets as non-current "Other assets." Property, Plant and Equipment Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over-estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses. Goodwill and Other Intangibles Goodwill and indefinite life intangible assets, such as the Company’s global brands, are subject to impairment tests at least annually or when events or changes in circumstances indicate that an asset may be impaired. These tests were performed and did not result in an impairment charge. Other intangible assets with finite lives, such as local brands and trademarks, customer relationships and non-compete agreements, are amortized over their estimated useful lives, generally ranging from 5 to 40 years. Amortization expense related to intangible assets is included in Other (income) expense, net, which is included in Operating profit. Income Taxes The provision for income taxes is determined using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect at the time such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. The Company recognizes interest expense and penalties related to unrecognized tax benefits within Provision for income taxes. Financial Instruments Derivative instruments are recorded as assets and liabilities at estimated fair value based on available market information. The Company’s derivative instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recognized in earnings each period. For cash flow hedges, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) and are recognized in earnings when the offsetting effect of the hedged item is also recognized in earnings. For hedges of the net investment in foreign subsidiaries, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) to offset the change in the value of the net investment being hedged. Cash flows related to hedges are classified in the same category as the cash flows from the hedged item in the Consolidated Statements of Cash Flows. The Company may also enter into certain foreign currency and interest rate instruments that economically hedge certain of its risks but do not qualify for hedge accounting. Changes in fair value of these derivative instruments, based on quoted market prices, are recognized in earnings each period. The Company’s derivative instruments and other financial instruments are more fully described in Note 7 , Fair Value Measurements and Financial Instruments along with the related fair value measurement considerations. Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units (both performance-based and time-vested), based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes-Merton ( “ Black-Scholes ” ) option pricing model to estimate the fair value of stock option awards. In addition to performance conditions, performance-based restricted stock units also include a total shareholder return modifier. Because the total shareholder return modifier is considered a market condition, the Company uses a Monte-Carlo simulation model to determine the fair value of performance-based restricted stock units. The fair value of time-vested restricted stock units is determined based on the closing market price of the Company’s stock at the date of grant. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model are more fully described in Note 8 , Capital Stock and Stock-Based Compensation Plans. Currency Translation The assets and liabilities of foreign subsidiaries, other than those operating in highly inflationary environments, are translated into U.S. dollars at year-end exchange rates with resulting translation gains and losses accumulated in a separate component of shareholders’ equity. Income and expense items are translated into U.S. dollars at average rates of exchange prevailing during the year. For subsidiaries operating in highly inflationary environments, local currency-denominated non-monetary assets, including inventories, goodwill and property, plant and equipment, are remeasured at their historical exchange rates, while local currency-denominated monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these operations are included in Net income attributable to Colgate-Palmolive Company. Recent Accounting Pronouncements In January 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. While the Company is currently assessing the impact of the new guidance, it is not expected to 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 new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. While the Company is currently assessing the impact of the new guidance, it is not expected to have a material impact on the Company’s Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments- Credit Losses.” This ASU clarifies and addresses certain items related to amendments in ASU 2016-13. This new guidance is effective for the Company beginning on January 1, 2020. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2019, the FASB issued ASU No. 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates.” ASU 2019-07 clarified or improved the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective upon issuance and did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825).” This ASU clarifies three topics related to financial instruments accounting. This new guidance is effective for the Company beginning on January 1, 2020. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In October 2018, the FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as Benchmark Interest Rate for Hedge Accounting Purposes.” The new guidance permits the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. This new guidance was effective for the Company on a prospective basis beginning on January 1, 2019, concurrently with the adoption of ASU 2017-12, and did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance was effective for the Company on a prospective or retrospective basis beginning on January 1, 2020, with early adoption permitted. The Company elected to adopt this guidance early, beginning on January 1, 2019 on a prospective basis. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans.” This new guidance removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and requires certain additional disclosures. This new guidance was effective for the Company on a retrospective basis beginning on January 1, 2020, with early adoption permitted. The Company elected to adopt this guidance early, beginning on January 1, 2019, on a retrospective basis. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This new guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance is effective for the Company beginning on January 1, 2020. Certain disclosure requirements in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which permits the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “TCJA” or “U.S. tax reform”) from Accumulated other comprehensive income (loss) to Retained earnings. This new guidance was effective for the Company beginning on January 1, 2019, with early adoption permitted, and must be applied either in the period of adoption or retrospectively to periods in which the effects of the TCJA are recognized. The Company elected to adopt this new guidance early, beginning on January 1, 2018, and reclassified $163 during the first quarter of 2018. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” amending the eligibility criteria for hedged items and transactions to expand an entity’s ability to hedge nonfinancial and financial risk components. The new guidance eliminates the requirement to separately measure and present hedge ineffectiveness and aligns the presentation of hedge gains and losses with the underlying hedge item. The new guidance also simplifies the hedge documentation and hedge effectiveness assessment requirements. The amended presentation and disclosure requirements must be adopted on a prospective basis, while any amendments to cash flow and net investment hedge relationships that exist on the date of adoption must be applied on a “modified retrospective” basis, meaning a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the year of adoption. The new guidance was effective for the Company on January 1, 2019 and did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a stock-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance was effective for the Company on a prospective basis beginning on January 1, 2018 and did not impact the Company’s Consolidated Financial Statements, as it is not the Company’s practice to change either the terms or the conditions of stock-based payment awards once they are granted. In March 2017, the FASB issued ASU No. 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” changing the presentation of the net periodic benefit cost on the Statement of Income and limiting the amount of net periodic benefit cost eligible for capitalization to assets. The new guidance permits only the service cost component of net periodic benefit cost to be eligible for capitalization. The new guidance also requires entities to present the service cost component of net periodic benefit cost together with compensation costs arising from services rendered by employees during the period. The non-service related components of net periodic benefit cost, which include interest, expected return on assets, amortization of prior service costs and actuarial gains and losses, are required to be presented outside of Operating profit. The line item or items used to present the other components of net periodic benefit cost must be disclosed in the Notes to the Consolidated Financial Statements, if not separately described on the Statement of Income. The new presentation requirement was adopted on a “full retrospective” basis, meaning the standard is applied to all of the periods presented in the financial statements, while the limitation on capitalization was adopted on a prospective basis. Effective January 1, 2018, as required, the Company adopted this standard on a retrospective basis. As permitted by the new guidance, the Company used the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the basis for applying the retrospective presentation requirements. As a result, for all periods presented, only the service related component of pension and other postretirement benefit costs is included in Operating profit. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminating the requirement to calculate implied fair value, essentially eliminating step two from the goodwill impairment test. The new standard requires goodwill impairment to be based upon the results of step one of the impairment test, which is defined as the excess of the carrying value of a reporting unit over its fair value. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard is effective for the Company on a prospective basis beginning on January 1, 2020. This new guidance is expected to have no impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which provides additional guidance on evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The guidance requires an entity to evaluate if substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, then the new guidance would define the transaction as an asset acquisition. If the threshold is not met, then the entity would, pursuant to the guidance, evaluate whether the assets meet the requirement that a business include, at a minimum, an input and substantive process that together significantly contribute to the ability to create outputs. The guidance was effective for the Company, on a prospective basis, beginning on January 1, 2018. This new guidance had no impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and payments are to be presented in the statement of cash flows. The guidance was effective for the Company on January 1, 2018. This new guidance had no impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This ASU introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. This new guidance is effective for the Company beginning on January 1, 2020 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which superseded Topic 840, “Leases.” which was further modified in ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” ASU No. 2018-11, “Leases (Topic 842) Targeted Improvements” and ASU No. 2019-01 “Leases (Topic 842) Codification Improvements” to clarify the implementation guidance. The new accounting standard was effective for the Company beginning on January 1, 2019 and required the recognition on the balance sheet of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The Company elected the optional transition method and adopted the new guidance on January 1, 2019, on a modified retrospective basis, with no restatement of prior period amounts. As allowed under the new accounting standard, the Company elected to apply practical expedients to carry forward the original lease determinations, lease classifications and accounting of initial direct costs for all asset classes at the time of adoption. The Company also elected not to separate lease components from non-lease components and to exclude short-term leases from its Consolidated Balance Sheet. The Company’s adoption of the new standard resulted in the recognition of right-of-use assets of $458 and liabilities of $574 , with no material cumulative effect adjustment to equity as of the date of adoption. In connection with the adoption of this guidance, as required, the Company reclassified certain restructuring reserves incurred in connection with the Global Growth and Efficiency Program and deferred rent liabilities as reductions to lease assets. Adoption of the new standard did not have a material impact on the Company’s Consolidated Statements of Income or Cash Flows. See Note 15 Leases for additional information. In May 2014, the FASB and the International Accounting Standards Board issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” by the FASB, provides a comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to its customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures. During 2016, the FASB issued several accounting updates (ASU No. 2016-08, 2016-10 and 2016-12) to clarify implementation guidance and correct unintended application of the guidance. The standard allows for either full retrospective adoption or modified retrospective adoption. The Company adopted the new standard on January 1, 2018, on a “modified retrospective” basis, which did not have a material impact on the Company’s Consolidated Financial Statements. As required, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the 2018 opening balance of retained earnings. Results for periods beginning on or after January 1, 2018 are presented under Topic 606, “Revenue from Contracts with Customers,” while prior period amounts are not adjusted and continue to be reported in accordance with the prior accounting guidance under Topic 605, “Revenue Recognition.” Reclassifications |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Laboratoires Filorga Cosmétiques ("Filorga") On September 19, 2019 (the "Acquisition Date"), the Company acquired the Filorga skin health business for cash consideration of €1,516 (approximately $1,674 ), which included interest on the equity purchase price plus additional consideration of €32 (approximately $38 ), the majority of which related to repayment of loans from former shareholders of Filorga. Filorga is a premium anti-aging skin health brand focused primarily on facial care. 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, including by expanding its portfolio in premium skin health. The total purchase price consideration of $1,712 million has been allocated to the net assets acquired based on their respective estimated fair values as follows: Cash $ 30 Receivables 53 Inventories 70 Other current assets 18 Other intangible assets 1,051 Goodwill 923 Other current liabilities (67 ) Deferred income taxes (276 ) Noncontrolling interests (90 ) Fair value of net assets acquired $ 1,712 Other intangible assets acquired include trademarks of $774 , which are considered to have an indefinite useful life, and customer relationships of $277 , which have an estimated life of 14 years . Goodwill of $923 was allocated to the Europe segment. The Company expects that goodwill will not be deductible for tax purposes. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values discussed above. The Company continues to evaluate potential contingencies that may have existed as of the acquisition date and expects to finalize the purchase price allocation no later than the third quarter of 2020. In the fourth quarter of 2019, the Company revised its estimates of the fair value of intangible assets acquired and increased other intangible assets by $105 with a corresponding reduction to goodwill. The results of operations of Filorga are reported on a lag basis. As such, Filorga’s results of operations from the Acquisition Date through November 30, 2019 are included in the Company’s Consolidated Results of Operations for the period ended December 31, 2019. Pro forma results of operations have not been presented as the impact on the Company’s Consolidated Financial Statements is not material. Nigeria Joint Venture On August 15, 2019, the Company acquired a 51% controlling interest in Colgate Tolaram Pte. Ltd., a joint venture which owns the Nigeria-based Hypo Homecare Products Limited, for $31 . Pro forma results of operations have not been presented as the impact on the Company’s Consolidated Financial Statements is not material. Physicians Care Alliance, LLC and Elta MD Holdings, Inc. In January 2018, the Company acquired all of the outstanding equity interests of Physicians Care Alliance, LLC (“PCA Skin”) and Elta MD Holdings, Inc. (“Elta MD”), professional skin health businesses, for aggregate cash consideration of approximately $730 . With these acquisitions, the Company entered the professional skin health category, which complements its existing global personal care businesses and resulted in the recognition of additional goodwill. Total purchase price consideration of $730 has been allocated to the net assets acquired based on their respective estimated fair values as follows: Recognized amounts of assets acquired and liabilities assumed: Inventories $ 8 Other current assets 8 Other intangible assets 369 Goodwill 397 Other current liabilities (6 ) Deferred income taxes (46 ) Fair value of net assets acquired $ 730 Other intangible assets acquired primarily include trademarks of $231 with useful lives of 25 years and customer relationships of $133 with useful lives ranging from 12 to 13 years . Goodwill of $397 was allocated to the North America segment. The Company expects that approximately 45% of the goodwill will be deductible for tax purposes. Pro forma results of operations have not been presented as the impact on the Company's Consolidated Financial Statements is not material. Hello Products LLC On January 31, 2020, the Company acquired Hello Products LLC, 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. |
Restructuring and Related Imple
Restructuring and Related Implementation Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges In the fourth quarter of 2012, the Company commenced a restructuring program (the “Global Growth and Efficiency Program”), which was expanded in 2014, expanded and extended in each of 2015 and 2017, and expanded again in 2019 to take advantage of additional savings opportunities near the end of the program. The program 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. At the conclusion of the Global Growth and Efficiency Program, total pretax charges were $1,854 ( $1,380 aftertax). The Company incurred pretax charges for 2019 of $132 ( $102 aftertax). Total pretax charges resulting from the Global Growth and Efficiency Program were comprised of the following categories: Employee-Related Costs, including severance, pension and other termination benefits ( 40% ); asset-related costs, primarily Incremental Depreciation and Asset Impairments ( 10% ); and Other charges, which include contract termination costs, consisting primarily of related implementation charges resulting directly from exit activities ( 30% ) and the implementation of new strategies ( 20% ). Over the course of the Global Growth and Efficiency Program, approximately 80% of the charges resulted in cash expenditures. Total pretax charges related to initiatives undertaken in North America ( 15% ), Europe ( 20% ), Latin America ( 5% ), Asia Pacific ( 5% ), Africa/Eurasia ( 5% ), Hill’s Pet Nutrition ( 10% ) and Corporate ( 40% ) included substantially all of the costs related to the implementation of new strategies, noted above, on a global basis. The Global Growth and Efficiency Program contributed a net reduction of approximately 4,400 positions from the Company’s global employee workforce. For the years ended December 31, 2019 , 2018 and 2017 , restructuring and related implementation charges are reflected in the Consolidated Statements of Income as follows: 2019 2018 2017 Cost of sales $ 8 $ 31 $ 75 Selling, general and administrative expenses 60 33 86 Other (income) expense, net 57 88 152 Non-service related postretirement costs 7 9 20 Total Global Growth and Efficiency Program charges, pretax $ 132 $ 161 $ 333 Total Global Growth and Efficiency Program charges, aftertax $ 102 $ 125 $ 246 Restructuring and related implementation charges in the preceding table are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. Total charges incurred for the Global Growth and Efficiency Program related to initiatives undertaken by the following reportable operating segments: Total Program 2019 2018 2017 Charges North America 4 % 18 % 23 % 17 % Latin America 12 % 10 % 2 % 5 % Europe 4 % (2 )% 21 % 19 % Asia Pacific 6 % 13 % 5 % 4 % Africa/Eurasia (1 )% 5 % 3 % 5 % Hill ’ s Pet Nutrition 2 % 19 % 6 % 8 % Corporate 73 % 37 % 40 % 42 % Total 100 % 100 % 100 % 100 % Over the course of the Global Growth and Efficiency Program, the Company incurred total pretax charges of $1,854 ( $1,380 aftertax) in connection with the implementation of various projects as follows: Total Program Charges as of December 31, 2019 Employee-Related Costs $ 706 Incremental Depreciation 128 Asset Impairments 58 Other 962 Total $ 1,854 Over the course of the Global Growth and Efficiency Program, the majority of the costs incurred related to the following projects: the implementation of the Company’s overall hubbing strategy; the consolidation of facilities; the extension of shared business services and streamlining of global functions; the closing of the Morristown, New Jersey personal care facility; the simplification and streamlining of the Company’s research and development capabilities and oral care supply chain, both in Europe; redesigning the European commercial organization; restructuring how the Company will provide future retirement benefits to substantially all of the U.S.-based employees participating in the Company’s defined benefit retirement plan by shifting them to the Company’s defined contribution plan; and the implementation of a Corporate efficiencies program. The following table summarizes the activity for the restructuring and related implementation charges, in the respective periods, discussed above and the related accruals: Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at January 1, 2017 $ 56 $ — $ — $ 125 $ 181 Charges 163 10 9 151 333 Cash payments (74 ) — — (170 ) (244 ) Charges against assets (21 ) (10 ) (9 ) — (40 ) Foreign exchange 3 — — 1 4 Other — — — — — Balance at December 31, 2017 $ 127 $ — $ — $ 107 $ 234 Charges 53 2 16 90 161 Cash payments (107 ) — — (60 ) (167 ) Charges against assets (9 ) (2 ) (16 ) — (27 ) Foreign exchange (4 ) — — — (4 ) Other — — — 5 5 Balance at December 31, 2018 $ 60 $ — $ — $ 142 $ 202 Charges 25 36 6 65 132 Cash payments (55 ) — — (58 ) (113 ) Charges against assets (7 ) (36 ) (6 ) (27 ) (76 ) Foreign exchange 3 — — — 3 Other — — — (48 ) (48 ) Balance at December 31, 2019 $ 26 $ — $ — $ 74 $ 100 Employee-Related Costs primarily included severance and other termination benefits and were calculated based on long-standing benefit practices, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also included pension and other retiree benefit enhancements amounting to $7 , $9 and $21 for the years ended December 31, 2019 , 2018 and 2017 , respectively, which are reflected as Charges against assets within Employee-Related Costs in the preceding table as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension and other retiree benefit liabilities. See Note 10 , Retirement Plans and Other Retiree Benefits for additional information. Incremental Depreciation was recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments were recorded to write down inventories and assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets. Other charges consisted primarily of charges resulting directly from exit activities and the implementation of new strategies as a result of the Global Growth and Efficiency Program. These charges for the years ended December 31, 2019 , 2018 and 2017 included third-party incremental costs related to the development and implementation of new business and strategic initiatives of $32 , $42 and $145 , respectively, and contract termination costs and charges resulting directly from exit activities of $5 , $48 and $6 , respectively. These charges were expensed as incurred. Also included in Other charges for the year ended December 31, 2019 were other exit costs of $28 related to the consolidation of facilities. Other decreases to the restructuring accruals reflect the reclassification of restructuring accruals to lease assets as a result of the Company's adoption of ASU No. 2018-10, "Codification Improvement to Topic 842, Leases," on January 1, 2019. See Note 2, Summary of Significant Accounting Policies and Note 15 Leases for additional information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The net carrying value of Goodwill as of December 31, 2019 and 2018 by segment was as follows: 2019 2018 Oral, Personal and Home Care North America $ 737 $ 733 Latin America 212 220 Europe 2,234 1,302 Asia Pacific 186 185 Africa/Eurasia 124 75 Total Oral, Personal and Home Care 3,493 2,515 Pet Nutrition 15 15 Total Goodwill $ 3,508 $ 2,530 The change in the amount of Goodwill during 2019 is primarily due to the acquisition of Filorga (see Note 3, Acquisitions for further information) and the impact of foreign currency translation. Other intangible assets as of December 31, 2019 and 2018 were comprised of the following: 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trademarks - finite life $ 771 $ (381 ) $ 390 $ 771 $ (358 ) $ 413 Other finite life intangible assets 699 (169 ) 530 390 (133 ) 257 Indefinite life intangible assets 1,747 — 1,747 967 — 967 Total Other intangible assets $ 3,217 $ (550 ) $ 2,667 $ 2,128 $ (491 ) $ 1,637 The change in the net carrying amounts of Other intangible assets during 2019 was primarily due to the acquisition of Filorga (see Note 3, Acquisitions for further information) and amortization expense of $62 . Annual estimated amortization expense for each of the next five years is expected to be approximately $75 |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Facilities | Long-Term Debt and Credit Facilities Long-term debt consisted of the following at December 31: Weighted Average Interest Rate Maturities 2019 2018 Notes 2.2% 2021 - 2078 $ 6,988 $ 5,820 Commercial paper (0.4)% 2020 579 534 Finance Lease Obligations Various Various 20 — 7,587 6,354 Less: Current portion of long-term debt (254 ) — Total $ 7,333 $ 6,354 The weighted-average interest rate on short-term borrowings included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2019 and 2018 was 1.8% and 5.3% , respectively. The Company classifies commercial paper and notes maturing within the next twelve months as long-term debt when it has the intent and ability to refinance such obligations on a long-term basis. Excluding such obligations, scheduled maturities of long-term debt and finance leases outstanding as of December 31, 2019 , were as follows: Years Ended December 31, 2020 $ 267 2021 860 2022 903 2023 895 2024 498 Thereafter 3,595 The Company has entered into interest rate swap agreements and foreign exchange contracts related to certain of these debt instruments. See Note 7, Fair Value Measurements and Financial Instruments for further information about the Company’s financial instruments. The Company’s debt issuances support its capital structure strategy objectives of funding its business and growth initiatives while minimizing its risk-adjusted cost of capital. During the first quarter of 2019, the Company issued €500 of seven-year notes at a fixed coupon rate of 0.500% and €500 of fifteen-year notes at a fixed coupon rate of 1.375% . During the fourth quarter of 2019, the Company issued €500 of two-year notes at a fixed coupon rate of 0.000% and €500 of twenty-year notes at a fixed coupon rate of 0.875% . The debt issuances were under the Company’s shelf registration statement. Proceeds from the debt issuances were used for general corporate purposes, which included the retirement of commercial paper and, in the case of the debt issuances in the first quarter of 2019, the repayment of the Company’s $500 1.75% fixed rate notes, which became due in March 2019, and €500 floating rate notes, which became due May 2019. At December 31, 2019 , the Company had access to unused domestic and foreign lines of credit of $ 4,594 (including under the facilities discussed below) and could also issue medium-term notes pursuant to an effective shelf registration statement. In November 2018, the Company entered into an amended and restated $2,650 revolving credit facility with a syndicate of banks that was scheduled to expire in November 2023. In August 2019, the term of the facility was extended by one year and it now expires in November 2024. In August 2019, the Company entered into a $1,500 364-day credit facility with a syndicate of banks that is scheduled to expire in August 2020. Commitment fees related to the credit facilities are not material. Certain agreements with respect to the Company’s bank borrowings contain financial and other covenants as well as cross-default provisions. Noncompliance with these requirements could ultimately result in the acceleration of amounts owed. The Company is in full compliance with all such requirements and believes the likelihood of noncompliance is remote. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments 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. Provided below are details of the Company’s exposures by type of risk and derivative instruments by type of hedge designation. Valuation Considerations The Company’s derivative instruments include interest rate swap contracts, 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 classified as follows: Level 1: Based upon quoted market prices in active markets for identical assets or liabilities. Level 2: Based upon observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Based upon unobservable inputs reflecting the reporting entity’s own assumptions. Foreign Exchange Risk As the Company markets its products in over 200 countries and territories, it is exposed to currency fluctuations related to manufacturing and selling its products in currencies other than the U.S. dollar. The Company manages its foreign currency exposures through a combination of cost containment measures, sourcing strategies, selling price increases and the hedging of certain costs in an effort to minimize the impact on earnings of foreign currency rate movements. The Company primarily utilizes foreign currency contracts, including forward and swap contracts, option contracts, foreign and 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. The duration of foreign currency contracts generally does not exceed 12 months and the contracts are valued using observable market rates (Level 2 valuation). Interest Rate Risk The Company manages its targeted mix of fixed and floating rate debt with debt issuances and by entering into interest rate swaps in order to mitigate fluctuations in earnings and cash flows that may result from interest rate volatility. The notional amount, interest payment and maturity date of the swaps generally match the principal, interest payment and maturity date of the related debt, and the swaps are valued using observable benchmark rates (Level 2 valuation). Commodity Price Risk The Company is exposed to price volatility related to raw materials used in production, such as resins, essential oils, pulp, tropical oils, tallow, poultry, corn and soybeans . The Company manages its raw material exposures through a combination of cost containment measures, sourcing strategies, ongoing productivity initiatives and the limited use of commodity hedging contracts. Futures contracts are used on a limited basis, primarily in the Hill’s Pet Nutrition segment, to manage volatility related to raw material inventory purchases of certain traded commodities, and these contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of the commodity contracts generally does not exceed 12 months. Credit Risk 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 with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations. The company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," beginning on January 1, 2019. Refer to Note 2, Summary of Significant Accounting Policies. 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 as of December 31, 2019 and December 31, 2018 : Assets Liabilities Account Fair Value Account Fair Value Designated derivative instruments December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Interest rate swap contracts Other current assets $ — $ — Other accruals $ — $ 1 Interest rate swap contracts Other assets 4 — Other liabilities — 8 Foreign currency contracts Other current assets 6 20 Other accruals 15 8 Foreign currency contracts Other assets — — Other liabilities 14 21 Commodity contracts Other current assets — — Other accruals — — Total designated $ 10 $ 20 $ 29 $ 38 Other financial instruments Marketable securities Other current assets 23 10 Total other financial instruments $ 23 $ 10 The carrying amount of cash, cash equivalents, accounts receivable and short-term debt approximated fair value as of December 31, 2019 and 2018 . The estimated fair value of the Company’s long-term debt, including the current portion, as of December 31, 2019 and 2018 , was $8,056 and $6,434 , respectively, and the related carrying value was $7,587 and $6,354 , 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 Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges as of: December 31, 2019 December 31, 2018 Long-term debt: Carrying amount of hedged item $ 403 $ 888 Cumulative hedging adjustment included in the carrying amount $ 4 $ (10 ) The following tables present the notional values as of: December 31, 2019 Foreign Currency Contracts Foreign Currency Debt Interest Rate Swaps Commodity Contracts Total Fair Value Hedges $ 388 $ — $ 400 $ — $ 788 Cash Flow Hedges $ 761 $ — $ — $ 20 $ 781 Net Investment Hedges $ 478 $ 3,856 $ — $ — $ 4,334 December 31, 2018 Foreign Currency Contracts Foreign Currency Debt Interest Rate Swaps Commodity Contracts Total Fair Value Hedges $ 327 $ — $ 900 $ — $ 1,227 Cash Flow Hedges $ 782 $ — $ — $ 14 $ 796 Net Investment Hedges $ 482 $ 1,396 $ — $ — $ 1,878 The following table presents the location and amount of gains (losses) recognized on the Company’s Consolidated Statements of Income: Twelve Months Ended December 31, 2019 2018 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Gain (loss) on hedges recognized in income: Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ (11 ) $ — $ — $ (2 ) Hedged items — — 11 — — 2 Foreign currency contracts designated as fair value hedges: Derivative instrument — 10 — — (1 ) — Hedged items — (10 ) — — 1 — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI 5 — — (4 ) — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI 1 — — 1 — — Total gain (loss) on hedges recognized in income $ 6 $ — $ — $ (3 ) $ — $ — The following table presents the location and amount of unrealized gains (losses) included in OCI: Twelve Months Ended December 31, 2019 2018 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI (9 ) 10 Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI — — Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments 4 33 Gain (loss) on hedged items (4 ) (33 ) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 12 93 Gain (loss) on hedged items (12 ) (93 ) Total unrealized gain (loss) on hedges recognized in OCI $ (9 ) $ 10 |
Capital Stock and Stock-Based C
Capital Stock and Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Capital Stock and Stock-Based Compensation Plans | Capital Stock and Stock-Based Compensation Plans Preference Stock The Company has the authority to issue 50,262,150 shares of preference stock. Stock Repurchases On June 18, 2018, the Board authorized the repurchase of shares of the Company’s common stock having an aggregate purchase price of up to $5 billion under a new share repurchase program (the “2018 Program”), which replaced a previously authorized share repurchase program (the “2015 Program”). The Company commenced repurchases of shares of the Company’s common stock under the 2018 Program beginning June 19, 2018. The Board also has authorized share repurchases on an ongoing basis to fulfill certain requirements of the Company’s compensation and benefit programs. The shares are repurchased from time to time in open market or privately negotiated transactions at the Company’s discretion, subject to market conditions, customary blackout periods and other factors. The Company repurchased its common stock at a cost of $1,202 during 2019 under the 2018 Program. The Company may use either authorized and unissued shares or treasury shares to meet share requirements resulting from the exercise of stock options and the vesting of restricted stock unit awards. A summary of common stock and treasury stock activity for the three years ended December 31 is as follows: Common Stock Outstanding Treasury Stock Balance, January 1, 2017 883,108,963 582,597,397 Common stock acquired (19,185,828 ) 19,185,828 Shares issued for stock options 9,670,988 (9,670,988 ) Shares issued for restricted stock units and other 1,106,995 (1,106,995 ) Balance, December 31, 2017 874,701,118 591,005,242 Common stock acquired (18,786,897 ) 18,786,897 Shares issued for stock options 6,040,920 (6,040,920 ) Shares issued for restricted stock units and other 957,651 (957,651 ) Balance, December 31, 2018 862,912,792 602,793,568 Common stock acquired (17,219,642 ) 17,219,642 Shares issued for stock options 8,145,777 (8,145,777 ) Shares issued for restricted stock units and other 862,852 (862,852 ) Balance, December 31, 2019 854,701,779 611,004,581 Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units, based on the fair value of those awards at the date of grant. The fair value of restricted stock units, generally based on market prices, is amortized on a straight-line basis over the requisite service period. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award. Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation cost from the grant date through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award. The Company has one incentive compensation plan pursuant to which it issues restricted stock units (both performance-based and time-vested) and stock options to employees and shares of common stock and stock options to non-employee directors. The Personnel and Organization Committee of the Board of Directors, which is comprised entirely of independent directors, administers the incentive compensation plan. The total stock-based compensation expense charged against pretax income for this plan was $100 , $109 and $127 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The total income tax benefit recognized on stock-based compensation, excluding excess tax benefits discussed below, was approximately $20 , $25 and $42 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Stock-based compensation expense is recorded within Selling, general and administrative expenses in the Corporate segment as these amounts are not included in internal measures of segment operating performance. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The weighted-average estimated fair value of stock options granted in the years ended December 31, 2019 , 2018 and 2017 was $10.48 , $9.48 and $8.37 , respectively. Fair value is estimated using the Black-Scholes option pricing model with the assumptions summarized in the following table: 2019 2018 2017 Expected term of options 6 years 4.5 years 4.5 years Expected volatility rate 19.2 % 17.7 % 16.0 % Risk-free interest rate 1.5 % 2.8 % 1.8 % Expected dividend yield 2.3 % 2.5 % 2.2 % The weighted-average expected term of options granted each year was determined with reference to historical exercise and post-vesting cancellation experience, the vesting period of the awards and the contractual term of the awards, among other factors. Expected volatility incorporates implied share-price volatility derived from exchange traded options on the Company’s common stock. The risk-free interest rate for the expected term of the option is based on the yield of a zero-coupon U.S. Treasury bond with a maturity period equal to the option’s expected term. Performance-based Restricted Stock Units In 2019, the Company evolved its approach to granting long-term incentive compensation, mainly from granting time-vested restricted stock units following the conclusion of a three -year performance cycle to granting officers and other key employees a target number of unearned performance-based restricted stock units at the beginning of each three -year performance cycle. Awards are earned and vest following the conclusion of the performance period on the basis of achievement of performance goals established at the commencement of each three -year performance period. A summary of performance-based restricted stock unit activity during 2019 is presented below: Shares (in thousands) Grant Date Fair Value Per Award Performance-based restricted stock units as of January 1, 2019 — $ — Activity: Granted 365 67 Forfeited (19 ) 67 Performance-based restricted stock units as of December 31, 2019 346 $ 67 As of December 31, 2019 , there was $ 17 of total unrecognized compensation expense related to unvested performance-based restricted stock unit awards, which will be recognized rateably over the remaining performance period. The Company uses a Monte-Carlo simulation model to estimate the fair value of performance-based restricted stock units at the date of grant. Time-Vested Restricted Stock Units The Company also grants time-vested restricted stock unit awards. As described above, under the Company’s previous long-term incentive program, time-vested restricted stock unit awards were also granted to officers and other key employees following a three -year performance period. Awards vest at the end of the restriction period, which is three years from the date of grant. The last award granted under the previous long-term incentive program was in 2018 for the 2015-2017 performance period. No awards were granted for the 2016-2018 or 2017-2019 performance periods. Awards for the 2018-2020 performance period, if earned, will be granted in 2021. As of December 31, 2019 , approximately 13,200,000 shares of common stock were available for future restricted stock unit awards. A summary of restricted stock unit activity during 2019 is presented below: Shares (in thousands) Weighted Average Grant Date Fair Value Per Award Restricted stock units as of January 1, 2019 2,474 $ 71 Activity: Granted 554 71 Vested (761 ) 70 Forfeited (64 ) 70 Restricted stock units as of December 31, 2019 2,203 $ 71 As of December 31, 2019 , there was $44 of total unrecognized compensation expense related to unvested restricted stock unit awards, which will be recognized over a weighted-average period of 2.2 years. The total fair value of restricted stock units vested during the years ended December 31, 2019 , 2018 and 2017 was $53 , $55 and $66 , respectively. Stock Options The Company issues non-qualified stock options to non-employee directors, officers and other employees. Beginning in 2019, stock options generally have a contractual term of eight years . Prior to 2019, stock options generally had a contractual term of six years . Stock options vest ratably over three years . As of December 31, 2019 , approximately 37,758,000 shares of common stock were available for future stock option grants. A summary of stock option activity during 2019 is presented below: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Intrinsic Value of Unexercised In-the-Money Options Options outstanding, January 1, 2019 39,710 $ 67 Granted 5,364 72 Exercised (8,205 ) 61 Forfeited or expired (684 ) 70 Options outstanding, December 31, 2019 36,185 69 4 $ 63 Options exercisable, December 31, 2019 25,142 $ 69 3 $ 60 As of December 31, 2019 , there was $32 of total unrecognized compensation expense related to unvested options, which will be recognized over a weighted-average period of 1.5 years. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $84 , $92 and $201 , respectively. The benefits of tax deductions in excess of grant date fair value resulting from the exercise of stock options and vesting of restricted stock unit awards for the years ended December 31, 2019 , 2018 and 2017 were $ 6 , $ 12 and $ 47 , respectively, and are recognized in the provision for income taxes as a discrete item in the quarterly period in which they occur and classified as an operating cash flow. Cash proceeds received from options exercised for the years ended December 31, 2019 , 2018 and 2017 were $ 498 , $ 329 and $ 507 , respectively. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Stock Ownership Plan | Employee Stock Ownership Plan In 1989, the Company expanded its Employee Stock Ownership Plan ( “ ESOP ” ) through the introduction of a leveraged ESOP that funds certain benefits for employees who have met eligibility requirements. As of December 31, 2019 and 2018 , there were 13,359,448 and 15,806,529 shares of common stock, respectively, outstanding and issued to the Company ’ s ESOP. During 2000, the ESOP entered into a loan agreement with the Company under which the benefits of the ESOP may be extended through 2035. As of December 31, 2019 , the ESOP had outstanding borrowings from the Company of $2 , which represents unearned compensation shown as a reduction in Shareholders’ equity. Dividends on stock held by the ESOP are paid to the ESOP trust and, together with cash contributions from the Company, are (a) used by the ESOP to repay principal and interest, (b) credited to participant accounts or (c) used for contributions to the Company’s defined contribution plans. Stock is allocated to participants based upon the ratio of the current year’s debt service to the sum of total outstanding principal and interest payments over the life of the debt. As of December 31, 2019 , 11,651,749 shares of common stock had been released and allocated to participant accounts and 1,707,699 shares of common stock were available for future allocation to participant accounts. Dividends on the stock used to repay principal and interest or credited to participant accounts are deductible for income tax purposes and, accordingly, are reflected net of their tax benefit in the Consolidated Statements of Changes in Shareholders’ Equity. Annual expense related to the ESOP was $0 in 2019 , 2018 and 2017 . The Company paid dividends on the shares held by the ESOP of $25 in 2019 , $29 in 2018 and $32 in 2017 . The Company did no t make any contributions to the ESOP in 2019 , 2018 or 2017 . |
Retirement Plans and Other Reti
Retirement Plans and Other Retiree Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Other Retiree Benefits | Retirement Plans and Other Retiree Benefits Retirement Plans The Company and certain of its U.S. and foreign subsidiaries maintain defined benefit retirement plans. Benefits under these plans are based primarily on years of service and employees’ earnings. In the U.S., effective January 1, 2014, the Company provides virtually all future retirement benefits through the Company’s defined contribution plan. As a result, service after December 31, 2013 is not considered for participants in the Company’s principal U.S. defined benefit retirement plan. Participants in the Company’s principal U.S. defined benefit retirement plan whose retirement benefit was determined under the cash balance formula continue to earn interest credits on their vested balances as of December 31, 2013 but no longer receive pay credits. Participants whose retirement benefit was determined under the final average earnings formula or career average earnings formula continue to have their accrued benefit adjusted for pay increases until termination of employment. In the Company’s principal U.S. plans and certain funded foreign plans, funds are contributed to trusts in accordance with regulatory limits to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The target asset allocation for the Company’s defined benefit plans is as follows: United States International Asset Category Equity securities 24 % 38 % Fixed income securities 68 % 45 % Real estate and other investments 8 % 17 % Total 100 % 100 % At December 31, 2019 the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows: Level of Valuation Pension Plans United States International Other Retiree Benefit Plans Cash and cash equivalents Level 1 $ 41 $ 15 $ 1 U.S. common stocks Level 1 49 3 1 International common stocks Level 1 — 3 — Pooled funds (1) Level 1 29 104 2 Fixed income securities (2) Level 2 1,067 14 20 Guaranteed investment contracts (3) Level 2 1 42 — 1,187 181 24 Investments valued using NAV per share (4) Domestic, developed and emerging markets equity funds 328 165 7 Fixed income funds (5) 177 196 3 Hedge funds (6) 3 17 — Multi-Asset funds (7) 155 2 2 Real estate funds (8) 41 25 1 704 405 13 Other assets and liabilities, net (9) (85 ) — — Total Investments $ 1,806 $ 586 $ 37 At December 31, 2018 the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows: Level of Valuation Pension Plans United States International Other Retiree Benefit Plans Cash and cash equivalents Level 1 $ 29 $ 9 $ 1 U.S. common stocks Level 1 75 3 3 International common stocks Level 1 — 4 — Pooled funds (1) Level 1 106 82 4 Fixed income securities (2) Level 2 865 24 28 Guaranteed investment contracts (3) Level 2 1 51 — 1,076 173 36 Investments valued using NAV per share (4) Domestic, developed and emerging markets equity funds 229 134 8 Fixed income funds (5) 116 173 4 Hedge funds (6) 56 6 2 Multi-Asset funds (7) 94 2 3 Real estate funds (8) 39 22 1 534 337 18 Other assets and liabilities, net (9) (42 ) — — Total Investments $ 1,568 $ 510 $ 54 _______ (1) Pooled funds primarily invest in U.S. and foreign equity securities, debt and money market securities. (2) The fixed income securities are traded over the counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of both December 31, 2019 and 2018, approximately 50% of the U.S. pension plan fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and corporate bonds. (3) The guaranteed investment contracts (“GICs”) represent contracts with insurance companies measured at the cash surrender value of each contract. The Level 2 valuation reflects that the cash surrender value is based principally on a referenced pool of investment funds with active redemption. (4) Investments that are measured at fair value using net asset value (“NAV”) per share as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the value of the underlying investments owned, minus its liabilities, divided by the number of shares outstanding. There are no unfunded commitments related to these investments. Redemption notice period primarily ranges from 0-3 months and redemption frequency windows range from daily to quarterly. (5) Fixed income funds primarily invest in U.S. government and investment grade corporate bonds. (6) Consists of investments in underlying hedge fund strategies that are primarily implemented through the use of long and short equity and fixed income securities and derivative instruments such as futures and options. (7) Multi-Asset funds primarily invest across a variety of asset classes, including global stocks and bonds, as well as alternative strategies. (8) Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. (9) This category primarily includes unsettled trades for investments purchased and sold and dividend receivables. Equity securities in the U.S. plans include investments in the Company’s common stock representing 3% and 5% of U.S. plan assets at December 31, 2019 and December 31, 2018 , respectively. In 2019 and 2018 , the U.S. plans sold 588,334 and 384,004 shares, respectively, of the Company’s common stock to the Company. No shares of the Company’s stock were purchased by the U.S. plans in 2019 or 2018 . The plans received dividends on the Company’s common stock of $2 in 2019 and $3 in 2018 . Other Retiree Benefits The Company and certain of its subsidiaries provide health care and life insurance benefits for retired employees to the extent not provided by government-sponsored plans. The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans is as follows: Pension Plans Other Retiree Benefit Plans 2019 2018 2019 2018 2019 2018 United States International Change in Benefit Obligations Benefit obligations at beginning of year $ 2,147 $ 2,363 $ 787 $ 847 $ 876 $ 960 Service cost 1 1 14 14 15 16 Interest cost 90 86 22 21 41 38 Participants’ contributions — — 2 2 — — Acquisitions/plan amendments — — 3 4 — — Actuarial loss (gain) 181 (139 ) 82 (11 ) 166 (88 ) Foreign exchange impact — — 8 (40 ) 1 (5 ) Termination benefits (1) 7 9 — — — — Curtailments and settlements — (4 ) (9 ) (7 ) — — Benefit payments (154 ) (169 ) (35 ) (42 ) (49 ) (45 ) Other — — 2 (1 ) — — Benefit obligations at end of year $ 2,272 $ 2,147 $ 876 $ 787 $ 1,050 $ 876 Change in Plan Assets Fair value of plan assets at beginning of year $ 1,568 $ 1,812 $ 510 $ 575 $ 54 $ — Actual return on plan assets 262 (101 ) 76 (16 ) 8 (1 ) Company contributions 130 30 30 27 24 100 Participants’ contributions — — 2 3 — — Foreign exchange impact — — 12 (29 ) — — Settlements and acquisitions — (4 ) (9 ) (7 ) — — Benefit payments (154 ) (169 ) (35 ) (42 ) (49 ) (45 ) Other — — — (1 ) — — Fair value of plan assets at end of year $ 1,806 $ 1,568 $ 586 $ 510 $ 37 $ 54 Funded Status Benefit obligations at end of year $ 2,272 $ 2,147 $ 876 $ 787 $ 1,050 $ 876 Fair value of plan assets at end of year 1,806 1,568 586 510 37 54 Net amount recognized $ (466 ) $ (579 ) $ (290 ) $ (277 ) $ (1,013 ) $ (822 ) Amounts Recognized in Balance Sheet Noncurrent assets $ — $ — $ 13 $ 6 $ — $ — Current liabilities (28 ) (26 ) (13 ) (12 ) (13 ) (46 ) Noncurrent liabilities (438 ) (553 ) (290 ) (271 ) (1,000 ) (776 ) Net amount recognized $ (466 ) $ (579 ) $ (290 ) $ (277 ) $ (1,013 ) $ (822 ) Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Actuarial loss $ 910 $ 940 $ 238 $ 226 $ 388 $ 239 Transition/prior service cost 1 1 7 6 (1 ) (1 ) $ 911 $ 941 $ 245 $ 232 $ 387 $ 238 Accumulated benefit obligation $ 2,236 $ 2,090 $ 816 $ 731 $ — $ — Pension Plans Other Retiree Benefit Plans 2019 2018 2019 2018 2019 2018 United States International Weighted-Average Assumptions Used to Determine Benefit Obligations Discount rate 3.40 % 4.38 % 2.06 % 2.80 % 3.56 % 4.43 % Long-term rate of return on plan assets 6.30 % 6.60 % 3.38 % 4.06 % 6.30 % 6.60 % Long-term rate of compensation increase 3.50 % 3.50 % 2.83 % 2.86 % 3.50 % 3.50 % ESOP growth rate — % — % — % — % 10.00 % 10.00 % Medical cost trend rate of increase — % — % — % — % 6.00 % 6.00 % Interest Crediting Rate 3.21 % 4.38 % 0.85 % 0.85 % — % — % _________ (1) Represents pension and other retiree benefit enhancements incurred in 2019 and 2018 pursuant to the Global Growth and Efficiency Program. The actuarial losses incurred during 2019 were primarily driven from a decrease in discount rates applied against future expected benefit payments and resulted in an increase in the benefit obligation for both the U.S. pension and Other retiree benefit plans. The actuarial gains recorded during 2018 for both the U.S. pension and other retiree benefit plans were primarily a result of an increase in discount rates applied against future estimated benefit payments. Additionally, other retiree benefit plans were positively impacted as a result of lower medical cost increases. The company adopted ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans- General (Topic 715): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans.” beginning on January 1, 2020. Refer to Note 3, Recent Accounting Pronouncements. The overall investment objective of the plans is to balance risk and return so that obligations to employees are met. The Company evaluates its long-term rate of return on plan assets on an annual basis. In determining the long-term rate of return, the Company considers the nature of the plans’ investments and the historical rates of return. The assumed rate of return as of December 31, 2019 for the U.S. plans was 6.30% . Average annual rates of return for the U.S. plans for the most recent 1-year, 5-year, 10-year, 15-year and 25-year periods were 17% , 6% , 8% , 7% , and 8% , respectively. Similar assessments were performed in determining rates of return on international pension plan assets to arrive at the Company’s 2019 weighted-average rate of return of 3.38% . The medical cost trend rate of increase assumed in measuring the expected cost of benefits is projected to decrease from 6.00% in 2020 to 4.75% by 2025 , remaining at 4.75% for the years thereafter. Pension plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consisted of the following: Years Ended December 31, 2019 2018 Benefit Obligation Exceeds Fair Value of Plan Assets Projected benefit obligation $ 2,862 $ 2,882 Fair value of plan assets 2,094 2,007 Accumulated benefit obligation 875 2,689 Fair value of plan assets 166 1,924 Other Retiree Benefit plans with accumulated postretirement benefit obligation in excess of plan assets as of December 31 consisted of the following: Years Ended December 31, 2019 2018 Benefit Obligation Exceeds Fair Value of Plan Assets Accumulated postretirement benefit obligation $ 958 $ 807 Fair value of plan assets 37 54 Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows: Pension Plans Other Retiree Benefit Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States International Components of Net Periodic Benefit Cost Service cost $ 1 $ 1 $ 1 $ 14 $ 14 $ 16 $ 15 $ 16 $ 13 Interest cost 90 86 94 22 21 22 41 38 40 Annual ESOP allocation — — — — — — — — — Expected return on plan assets (103 ) (115 ) (111 ) (19 ) (21 ) (22 ) (3 ) (2 ) — Amortization of transition and prior service costs (credits) — — — 1 — — — — — Amortization of actuarial loss 51 47 48 9 8 10 11 14 13 Net periodic benefit cost $ 39 $ 19 $ 32 $ 27 $ 22 $ 26 $ 64 $ 66 $ 66 Other postretirement charges 7 9 24 1 2 4 — — (3 ) Total pension cost $ 46 $ 28 $ 56 $ 28 $ 24 $ 30 $ 64 $ 66 $ 63 Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost Discount rate 4.38 % 3.73 % 4.27 % 2.80 % 2.53 % 2.59 % 4.43 % 3.80 % 4.41 % Long-term rate of return on plan assets 6.60 % 6.60 % 6.80 % 4.06 % 4.04 % 4.14 % 6.60 % 6.60 % 6.80 % Long-term rate of compensation increase 3.50 % 3.50 % 3.50 % 2.86 % 2.79 % 2.58 % — % — % — % ESOP growth rate — % — % — % — % — % — % 10.00 % 10.00 % 10.00 % Medical cost trend rate of increase — % — % — % — % — % — % 6.00 % 6.00 % 6.33 % Interest Crediting Rate 4.26 % 3.73 % 4.27 % 0.85 % 0.85 % 0.65 % — % — % — % Effective January 1, 2018, as required, the Company adopted ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” on a retrospective basis. As a result, for all periods presented, only the service related component of pension and other postretirement benefit costs is included in Operating profit. The non-service related components (interest cost, expected return on assets and amortization of actuarial gains and losses) are included in a new line item, “Non-service related postretirement costs,” which is below Operating profit. Adoption of this standard had no effect on Net income attributable to Colgate-Palmolive Company, Earnings per common share or Cash flow. See Note 2, Summary of Significant Accounting Policies to the Consolidated Financial Statements for additional information. Other postretirement charges in 2019 , 2018 and 2017 include pension and other benefit enhancements amounting to $7 , $9 and $21 respectively, incurred pursuant to the Global Growth and Efficiency Program. Other postretirement charges in 2019 and 2018 also include charges of $1 and $2 , respectively, in part due to retirements under the Global Growth and Efficiency Program. The Company made voluntary contributions of $113 , $67 and $81 in 2019 , 2018 and 2017 , respectively, to its U.S. retirement plans. Expected Contributions and Benefit Payments The Company does not expect to make any voluntary contributions to its U.S. postretirement plans for the year ending December 31, 2020 . Actual funding may differ from current estimates depending on the variability of the market value of the assets as compared to the obligation and other market or regulatory conditions. Benefit payments expected to be paid from the Company's assets to participants in unfunded plans are estimated to be approximately $55 for the year ending December 31, 2020 . Total benefit payments expected to be paid to participants in both funded and unfunded plans are estimated as follows: Pension Plans Years Ended December 31, United States International Other Retiree Benefit Plans Total 2020 $ 146 $ 36 $ 49 $ 231 2021 147 37 50 234 2022 151 37 51 239 2023 149 39 52 240 2024 152 42 53 247 2025-2029 722 219 272 1,213 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of Income before income taxes are as follows for the years ended December 31: 2019 2018 2017 United States $ 1,050 $ 1,175 $ 1,072 International 2,251 2,289 2,415 Total Income before income taxes $ 3,301 $ 3,464 $ 3,487 The Provision for income taxes consists of the following for the years ended December 31: 2019 2018 2017 United States $ 180 $ 213 $ 338 International 594 693 975 Total Provision for income taxes $ 774 $ 906 $ 1,313 Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows: 2019 2018 2017 Goodwill and intangible assets $ 34 $ 2 $ 135 Property, plant and equipment 12 (15 ) 84 Pension and other retiree benefits (13 ) (7 ) (192 ) Stock-based compensation (1 ) 9 (28 ) Tax credits and tax loss carryforwards 3 (4 ) (4 ) Deferred withholding tax (21 ) (100 ) (119 ) Other, net (33 ) 62 16 Total deferred tax benefit (provision) $ (19 ) $ (53 ) $ (108 ) The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows: Percentage of Income before income taxes 2019 2018 2017 Tax at United States statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 0.6 1.0 0.5 Earnings taxed at other than United States statutory rate 4.7 5.6 (3.4 ) Charge for U.S. tax reform (1) — 2.3 7.9 Excess tax benefits from stock-based compensation (0.2 ) (0.3 ) (1.4 ) Foreign Tax Credit Carryback (2) — (1.7 ) — Benefit for foreign tax matters (3) (0.9 ) (0.4 ) — Foreign-derived intangible income benefit (1.3 ) (1.1 ) — Other, net (0.5 ) (0.2 ) (0.9 ) Effective tax rate 23.4 % 26.2 % 37.7 % _________ (1) On December 22, 2017, the TCJA was enacted, which, among other things, lowered the U.S. corporate income tax rate to 21% from 35% and established a modified territorial system requiring a mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries. Beginning in 2018, the TCJA also requires a minimum tax on certain earnings generated by foreign subsidiaries while providing for tax-free repatriation of such earnings through a 100% dividends-received deduction. The Company’s effective income tax rate in 2017 included a provisional charge of $275 , recorded in the fourth quarter of 2017, based on its initial analysis of the TCJA using information and estimates available as of February 15, 2018, the date on which the Company filed its Annual Report on Form 10-K for the year ended December 31, 2017. During 2018, the Company finalized its assessment of the impact of the TCJA and recognized an additional tax expense of $80 reflecting the impact of transition tax guidance issued by the U.S. Treasury and the update of certain estimates and calculations based on information available through the end of 2018. Any further guidance issued after December 31, 2018 may have an impact to the Company’s Provision for income tax in the period such guidance is effective. (2) In 2018, the Company generated excess foreign taxes associated with its foreign branch operations which are being carried back to 2017. This item is not expected to be recurring. (3) In December 2019, the Swiss government enacted changes to its corporate tax regime, which included, among other items, the repeal of certain preferential tax regimes and an increase to the cantonal tax rate for future periods. Additionally, the government provided transition rules which allowed companies to record goodwill for tax purposes, partially offsetting the impact on cash taxes of the higher cantonal rate over the next ten years. As a result of these changes, the Company recorded an estimated net benefit of $29 to the Provision for income taxes. In 2018, the benefit from a tax matter of $15 relates to several Supreme Court and Administrative Court rulings in a foreign jurisdiction allowing certain tax deductions which had the effect of reversing prior decisions. The components of deferred tax assets (liabilities) are as follows at December 31: 2019 2018 Deferred tax liabilities: Goodwill and intangible assets $ (598 ) $ (344 ) Property, plant and equipment (303 ) (311 ) Deferred withholding tax (207 ) (181 ) Other (46 ) (75 ) Total deferred tax liabilities (1,154 ) (911 ) Deferred tax assets: Pension and other retiree benefits 381 354 Tax credits and tax loss carryforwards 93 89 Accrued liabilities 221 180 Stock-based compensation 88 95 Other 100 164 Total deferred tax assets 883 882 Valuation Allowance $ (59 ) $ (54 ) Net deferred tax assets $ 824 $ 828 Net deferred income taxes $ (330 ) $ (83 ) 2019 2018 Deferred taxes included within: Assets: Deferred income taxes $ 177 $ 152 Liabilities: Deferred income taxes (507 ) (235 ) Net deferred income taxes $ (330 ) $ (83 ) Applicable U.S. income and foreign withholding taxes have been provided on substantially all of the Company’s accumulated earnings of foreign subsidiaries. Net tax benefit of $13 in 2019 , net tax benefit of $2 in 2018 , and net tax benefit of $37 in 2017 were recorded directly through equity. The net tax benefit in 2019 predominantly includes current and future tax impacts related to benefit plans. The amounts in 2018 and 2017 include current and future tax impacts related to employee equity compensation and benefit plans. The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. Unrecognized tax benefits activity for the years ended December 31, 2019 , 2018 and 2017 is summarized below: 2019 2018 2017 Unrecognized tax benefits: Balance, January 1 $ 190 $ 214 $ 201 Increases as a result of tax positions taken during the current year 14 14 13 Decreases of tax positions taken during prior years (21 ) (37 ) (9 ) Increases of tax positions taken during prior years 20 9 15 Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations (30 ) (6 ) (15 ) Effect of foreign currency rate movements — (4 ) 9 Balance, December 31 $ 173 $ 190 $ 214 If all of the unrecognized tax benefits for 2019 above were recognized, approximately $161 would impact the effective tax rate and would result in a cash outflow of approximately $170 . Although it is possible that the amount of unrecognized benefits with respect to our uncertain tax positions will increase or decrease in the next twelve months, the Company does not expect material changes. The Company recognized approximately $0 , $1 and $11 of interest expense related to the above unrecognized tax benefits within income tax expense in 2019 , 2018 and 2017 , respectively. The Company had accrued interest of approximately $23 , $27 and $28 as of December 31, 2019 , 2018 and 2017 , respectively. The Company and its subsidiaries file U.S. federal income tax returns as well as income tax returns in many state and foreign jurisdictions. All U.S. federal income tax returns through December 31, 2011 have been audited by the IRS and there are limited matters which the Company plans to appeal for years 2010 through 2011, the settlement of which is not expected to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. With a few exceptions, the Company is no longer subject to U.S. state and local income tax examinations for income tax returns through December 31, 2013. In addition, the Company has subsidiaries in various foreign jurisdictions that have statutes of limitations for tax audits generally ranging from three to six years . The Company has made an accounting policy election to treat Global Intangible Low-Taxed Income taxes as a current period expense rather than including these amounts in the measurement of deferred taxes. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the years ended December 31, 2019 , 2018 and 2017 , earnings per share were as follows: 2019 2018 2017 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 2,367 859.1 $ 2.76 $ 2,400 870.6 $ 2.76 $ 2,024 881.8 $ 2.30 Stock options and restricted stock units 2.0 2.4 6.0 Diluted EPS $ 2,367 861.1 $ 2.75 $ 2,400 873.0 $ 2.75 $ 2,024 887.8 $ 2.28 Basic earnings per common share is computed by dividing net income available for common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per common share is computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and restricted stock units. As of December 31, 2019 , 2018 and 2017 , the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 19,901,202 , 18,039,961 and 11,056,725 , respectively. As of December 31, 2019 , 2018 and 2017 , the average number of restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 4,516 , 9,529 and 91 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has various contractual commitments to purchase raw, packaging and other materials totaling approximately $559 at December 31, 2019 . 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 $ 225 (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 $ 152 . 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. There is one case currently on appeal at the administrative level. In the event the Company is ultimately unsuccessful in this administrative appeal, further appeals are available within the Brazilian federal courts. In September 2015, the Company lost one of its appeals at the administrative level and filed a lawsuit in Brazilian federal court. In February 2017, the Company lost an additional administrative appeal and filed a lawsuit in Brazilian federal court. In April 2019, the Company lost another administrative appeal and filed a lawsuit in 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 $63 , 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 Matters Certain of the Company’s subsidiaries have historically been subject to investigations, 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 December 31, 2019 of competition law matters pending against the Company during the year ended December 31, 2019 is set forth below. ▪ 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 . 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 assessed against Sara Lee’s French subsidiary. The Company is indemnified for these fines by Unilever pursuant to the Sale and Purchase Agreement. The fines were confirmed by the Court of Appeal in October 2016. The Company appealed the decision of the Court of Appeal on behalf of the Company and Sara Lee in the French Supreme Court. In March 2019, the French Supreme Court denied the Company's appeal. ▪ 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 has 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 December 31, 2019 , there were 121 individual cases pending against the Company in state and federal courts throughout the United States, as compared to 239 cases as of December 31, 2018. During the year ended December 31, 2019 , 110 new cases were filed and 228 cases were resolved by voluntary dismissal, dismissal by the court, judgment in the Company’s favor or settlement. During the year ended December 31, 2019, one case resulted in a jury verdict in favor of the Company after a trial, which is now pending appeal by the plaintiff, and one case resulted in an adverse jury verdict after a trial, which the Company is appealing. The value of the settlements and of the adverse jury verdict in the year presented was not material, either individually or in the aggregate, to such period’s results of operations. The Company believes that a significant portion of its costs incurred in defending and resolving these claims will be covered by insurance policies issued by several primary, excess and umbrella insurance carriers, subject to deductibles, exclusions, retentions and policy limits. 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 the case where the Company received an adverse jury verdict, 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 in the United States District Court for the Southern District of New York. This action has been certified as a class action. The relief sought includes recalculation of benefits, pre- and post-judgment interest and attorneys’ fees. The Company is contesting this action vigorously. Since the amount of any potential loss from this case currently cannot be reasonably estimated, the range of reasonably possible losses in excess of accrued liabilities disclosed above does not include any amount relating to the case. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 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. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges 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. Approximately 70% of the Company’s Net sales are generated from markets outside the U.S., with approximately 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). Oral, Personal and Home Care sales to Wal-Mart, Inc. and its affiliates represent approximately 11% of the Company’s Net sales in 2019. No other customer represents more than 10% of Net sales. In 2019 , 2018 and 2017 , Corporate Operating profit included charges of $125 , $152 and $313 , respectively, resulting from the Global Growth and Efficiency Program. Additionally, Corporate Operating profit for 2019 included a charge for acquisition-related costs of $24 and a benefit from a value-added tax matter in Brazil of $30 . 2019 2018 2017 Net sales Oral, Personal and Home Care North America (1) $ 3,424 $ 3,348 $ 3,117 Latin America 3,606 3,605 3,887 Europe 2,450 2,502 2,394 Asia Pacific 2,707 2,734 2,781 Africa/Eurasia 981 967 983 Total Oral, Personal and Home Care 13,168 13,156 13,162 Pet Nutrition (2) 2,525 2,388 2,292 Total Net sales $ 15,693 $ 15,544 $ 15,454 _________ (1) Net sales in the U.S. for Oral, Personal and Home Care were $3,166 , $3,091 and $2,865 in 2019 , 2018 and 2017 , respectively. (2) Net sales in the U.S. for Pet Nutrition were $1,441 , $1,304 and $1,246 in 2019 , 2018 and 2017 , respectively. 2019 2018 2017 Operating profit Oral, Personal and Home Care North America $ 982 $ 1,037 $ 1,043 Latin America 963 995 1,171 Europe 624 634 605 Asia Pacific 749 777 842 Africa/Eurasia 187 173 180 Total Oral, Personal and Home Care 3,505 3,616 3,841 Pet Nutrition 703 680 677 Corporate (654 ) (602 ) (811 ) Total Operating profit $ 3,554 $ 3,694 $ 3,707 2019 2018 2017 Capital expenditures Oral, Personal and Home Care North America $ 43 $ 53 $ 74 Latin America 90 131 127 Europe 42 39 63 Asia Pacific 40 75 125 Africa/Eurasia 8 11 13 Total Oral, Personal and Home Care 223 309 402 Pet Nutrition 41 35 33 Corporate 71 92 118 Total Capital expenditures $ 335 $ 436 $ 553 2019 2018 2017 Depreciation and amortization Oral, Personal and Home Care North America $ 94 $ 88 $ 58 Latin America 84 82 82 Europe 72 70 74 Asia Pacific 100 103 101 Africa/Eurasia 8 8 8 Total Oral, Personal and Home Care 358 351 323 Pet Nutrition 55 53 53 Corporate 106 107 99 Total Depreciation and amortization $ 519 $ 511 $ 475 2019 2018 2017 Identifiable assets Oral, Personal and Home Care North America $ 3,576 $ 3,310 $ 2,608 Latin America 2,384 2,225 2,423 Europe 5,104 2,883 3,781 Asia Pacific 2,155 2,148 2,244 Africa/Eurasia 590 502 544 Total Oral, Personal and Home Care 13,809 11,068 11,600 Pet Nutrition 1,175 1,033 1,026 Corporate (1) 50 60 50 Total Identifiable assets (2) $ 15,034 $ 12,161 $ 12,676 ____________ (1) In 2019 , Corporate identifiable assets primarily consist of derivative instruments ( 2% ) and investments in equity securities ( 92% ). In 2018 , Corporate identifiable assets primarily consist of derivative instruments ( 7% ) and investments in equity securities ( 88% ). In 2017 , Corporate identifiable assets primarily consist of derivative instruments ( 5% ) and investments in equity securities ( 86% ). (2) Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $ 10,192 in 2019 , one-half of total long-lived assets of $8,259 in 2018 , and one-third of total long-lived assets of $7,908 in 2017 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASU No. 2016-02 “Leases (Topic 842)” on January 1, 2019, resulting in the recognition of right-of-use assets of $458 and liabilities of $574 . The Company enters into leases for land, office space, warehouses and equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date. Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of December 31, 2019 or for the three and twelve months ended December 31, 2019. As of December 31, 2019 , the Company ’ s right-of use assets and liabilities for operating leases were as follows: Other assets $ 502 Other accruals $ 145 Other liabilities 491 Total operating lease liabilities $ 636 Lease commitments under noncancellable operating leases as of December 31, 2019 were as follows: 2020 $ 167 2021 127 2022 101 2023 63 2024 36 Thereafter 241 Total lease commitments $ 735 Less: Interest (99 ) Present value of lease liabilities $ 636 The components of the Company’s operating lease cost for the twelve months ended December 31, 2019 were as follows: Operating lease cost $ 169 Short-term lease cost 5 Variable lease cost 30 Sublease income — Total lease cost $ 204 Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and is not reflected on the Company’s Consolidated Balance Sheets. Variable lease costs are comprised of costs, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance, that are not included in the lease liability and are recognized in the period in which they are incurred. Supplemental cash flow information related to operating leases for the twelve months ended December 31, 2019 was as follows: ▪ Payments against amounts included in the measurement of lease liabilities: $202 ▪ Lease assets obtained in exchange for lease liabilities: $232 As of December 31, 2019 , the weighted-average remaining lease term for operating leases was 8 years and the weighted-average discount rate for operating leases was 4.1% There were no material operating leases that the Company had entered into and that were yet to commence as of December 31, 2019 . Minimum rental commitments under noncancellable operating leases as of December 31, 2018, prior to adoption of ASU 2016-02, were as follows: 2019 $ 193 2020 165 2021 123 2022 102 2023 51 Thereafter 32 Prior to adoption of ASU 2016-02, Company’s rental expense amounted to $213 in 2018 and $211 in 2017. |
Supplemental Income Statement I
Supplemental Income Statement Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | |
Supplemental Income Statement Information | Supplemental Income Statement Information Other (income) expense, net 2019 2018 2017 Global Growth and Efficiency Program $ 57 $ 88 $ 152 Amortization of intangible assets 62 59 35 Equity income (9 ) (10 ) (11 ) Value-added tax matter in Brazil (30 ) — — Write-off of certain investments and fixed assets 51 1 14 Acquisition-related costs 21 — — Charges for a change in go-to-market strategy in certain countries 15 — — Other, net 29 10 (17 ) Total Other (income) expense, net $ 196 $ 148 $ 173 Interest (income) expense, net 2019 2018 2017 Interest incurred $ 193 $ 195 $ 156 Interest capitalized (1 ) (2 ) (3 ) Interest income (47 ) (50 ) (51 ) Total Interest (income) expense, net $ 145 $ 143 $ 102 2019 2018 2017 Research and development $ 281 $ 277 $ 285 Advertising $ 1,694 $ 1,590 $ 1,573 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Inventories by major class are as follows at December 31: Inventories 2019 2018 Raw materials and supplies $ 305 $ 253 Work-in-process 49 37 Finished goods 1,056 960 Total Inventories, net $ 1,410 $ 1,250 Non-current inventory, net (10 ) — Current Inventories, net $ 1,400 $ 1,250 Inventories valued under LIFO amounted to $303 and $294 at December 31, 2019 and 2018 , respectively. The excess of current cost over LIFO cost at the end of each year was $62 and $63 , respectively. The liquidations of LIFO inventory quantities had no material effect on income in 2019 , 2018 and 2017 . Inventory classified as non-current at December 31, 2019 was recorded on the Consolidated Balance Sheets as "Other assets". Property, plant and equipment, net 2019 2018 Land $ 153 $ 152 Buildings 1,600 1,604 Manufacturing machinery and equipment 5,309 5,157 Other equipment 1,518 1,423 8,580 8,336 Accumulated depreciation (4,830 ) (4,455 ) Total Property, plant and equipment, net $ 3,750 $ 3,881 Other accruals 2019 2018 Accrued advertising and coupon redemption $ 525 $ 486 Accrued payroll and employee benefits 340 275 Accrued taxes other than income taxes 104 127 Restructuring accrual 85 148 Pension and other retiree benefits 54 84 Lease Liabilities Due in One Year 145 — Accrued interest 43 35 Derivatives 16 9 Other 605 532 Total Other accruals $ 1,917 $ 1,696 Other liabilities 2019 2018 Pension and other retiree benefits $ 1,728 $ 1,600 Restructuring accrual 15 54 Long-Term Lease Liabilities 491 — Other 364 380 Total Other liabilities $ 2,598 $ 2,034 |
Supplemental Other Comprehensiv
Supplemental Other Comprehensive Income (Loss) Information | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Supplemental Other Comprehensive Income (Loss) Information | Supplemental Other Comprehensive Income (Loss) Information Other comprehensive income (loss) components attributable to Colgate-Palmolive Company before tax and net of tax during the years ended December 31 were as follows: 2019 2018 2017 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Cumulative translation adjustments $ 49 $ 27 $ (233 ) $ (218 ) $ 218 $ 285 Pension and other benefits: Net actuarial gain (loss), prior service costs and settlements during the period (204 ) (154 ) (21 ) (16 ) 21 9 Amortization of net actuarial loss, transition and prior service costs (1) 72 54 69 54 71 45 Retirement Plan and other retiree benefit adjustments (132 ) (100 ) 48 38 92 54 Cash flow hedges: Unrealized gains (losses) on cash flow hedges (9 ) (7 ) 10 8 (25 ) (16 ) Reclassification of (gains) losses into net earnings on cash flow hedges (2) (6 ) (5 ) 3 2 3 2 Gains (losses) on cash flow hedges (15 ) (12 ) 13 10 (22 ) (14 ) Total Other comprehensive income (loss) $ (98 ) $ (85 ) $ (172 ) $ (170 ) $ 288 $ 325 _________ (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10 , Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 7 , Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) is comprised of cumulative foreign currency translation gains and losses, unrecognized pension and other retiree benefit costs and unrealized gains and losses from derivative instruments designated as cash flow hedges. At December 31, 2019 and 2018 , Accumulated other comprehensive income (loss) consisted primarily of aftertax unrecognized pension and other retiree benefit costs of $1,138 and $1,038 , respectively, and cumulative foreign currency translation adjustments of $3,128 and $3,155 , respectively. Foreign currency translation adjustments in 2019 primarily reflect gains from Thai baht and the Mexican peso. Foreign currency translation adjustments in 2018 primarily reflect losses from the euro and the Argentine peso. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Total First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Net sales $ 15,693 $ 3,884 $ 3,866 $ 3,928 $ 4,015 Gross profit 9,325 (1) 2,287 (3) 2,308 (5) 2,316 (7) 2,414 (9) Net income including noncontrolling interests 2,527 (2) 600 (4) 618 (6) 627 (8) 682 (10) Net income attributable to Colgate-Palmolive Company 2,367 (2) 560 (4) 586 (6) 578 (8) 643 (10) Earnings per common share: Basic 2.76 (2) 0.65 (4) 0.68 (6) 0.67 (8) 0.75 (10) Diluted 2.75 (2) 0.65 (4) 0.68 (6) 0.67 (8) 0.75 (10) 2018 Net sales $ 15,544 $ 4,002 $ 3,886 $ 3,845 $ 3,811 Gross profit 9,231 (11) 2,408 (13) 2,301 (15) 2,269 (17) 2,253 (19) Net income including noncontrolling interests 2,558 (12) 678 (14) 675 (16) 562 (18) 643 (20) Net income attributable to Colgate-Palmolive Company 2,400 (12) 634 (14) 637 (16) 523 (18) 606 (20) Earnings per common share: Basic 2.76 (12) 0.72 (14) 0.73 (16) 0.60 (18) 0.70 (20) Diluted 2.75 (12) 0.72 (14) 0.73 (16) 0.60 (18) 0.70 (20) ____________ Note: Basic and diluted earnings per share are computed independently for each quarter and the year-to-date period presented. Accordingly, the sum of the quarterly earnings per common share may not necessarily equal the earnings per share for the year-to-date period. (1) Gross profit for the full year of 2019 includes $8 of charges related to the Global Growth and Efficiency Program, and a $3 charge for acquisition-related costs. (2) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the full year of 2019 includes $102 of aftertax charges related to the Global Growth and Efficiency Program, a $20 aftertax charge for acquisition-related costs, a $20 aftertax benefit related to a value added tax matter in Brazil and a $29 tax benefit related to Swiss income tax reform. (3) Gross profit for the first quarter of 2019 includes $11 of charges related to the Global Growth and Efficiency Program. (4) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the first quarter of 2019 include $22 of aftertax charges related to the Global Growth and Efficiency Program. (5) Gross profit for the second quarter of 2019 includes $3 of benefit related to the Global Growth and Efficiency Program. (6) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the second quarter of 2019 includes $31 of aftertax charges related to the Global Growth and Efficiency Program. (7) Gross profit for the third quarter of 2019 includes $1 of charges related to the Global Growth and Efficiency Program. (8) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the third quarter of 2019 include $22 of aftertax charges related to the Global Growth and Efficiency Program and a $14 aftertax charge for acquisition-related costs. (9) Gross profit for the fourth quarter of 2019 includes $1 of benefit related to the Global Growth and Efficiency Program, and a $3 charge for acquisition-related costs. (10) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the fourth quarter of 2019 include $27 of aftertax charges related to the Global Growth and Efficiency Program, a $6 charge for acquisition-related costs, a $20 aftertax benefit related to a value added tax matter in Brazil and a $29 tax benefit related to Swiss income tax reform. (11) Gross profit for the full year of 2018 includes $31 of charges related to the Global Growth and Efficiency Program. (12) Net income including noncontrolling interests for the full year of 2018 includes $124 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the full year of 2018 include $125 of aftertax charges related to the Global Growth and Efficiency Program, an $80 charge related to U.S. tax reform and a $15 benefit from a foreign tax matter. (13) Gross profit for the first quarter of 2018 includes $6 of charges related to the Global Growth and Efficiency Program. (14) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the first quarter of 2018 include $20 of aftertax charges related to the Global Growth and Efficiency Program. (15) Gross profit for the second quarter of 2018 includes $5 of charges related to the Global Growth and Efficiency Program. (16) Net income including noncontrolling interests for the second quarter of 2018 includes $48 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the second quarter of 2018 include $51 of aftertax charges related to the Global Growth and Efficiency Program and a $15 benefit from a foreign tax matter. (17) Gross profit for the third quarter of 2018 includes $8 of charges related to the Global Growth and Efficiency Program. (18) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the third quarter of 2018 include $22 of aftertax charges related to the Global Growth and Efficiency Program and a $80 charge related to U.S. tax reform. (19) Gross profit for the fourth quarter of 2018 includes $12 of charges related to the Global Growth and Efficiency Program. (20) Net income including noncontrolling interests for the fourth quarter of 2018 include $34 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the fourth quarter of 2018 include $32 of aftertax charges related to the Global Growth and Efficiency Program. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | COLGATE-PALMOLIVE COMPANY SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Dollars in Millions) Additions Balance at Beginning of Period Charged to Costs and Expenses Other Deductions Balance at End of Period Year Ended December 31, 2019 Allowance for doubtful accounts and estimated returns $ 82 $ 6 $ — $ 12 $ 76 Valuation allowance for deferred tax assets $ 54 $ 12 $ — $ 7 $ 59 Year Ended December 31, 2018 Allowance for doubtful accounts and estimated returns $ 77 $ 15 $ — $ 10 $ 82 Valuation allowance for deferred tax assets $ 9 $ 45 $ — $ — $ 54 Year Ended December 31, 2017 Allowance for doubtful accounts and estimated returns $ 73 $ 8 $ — $ 4 $ 77 Valuation allowance for deferred tax assets $ — $ 9 $ — $ — $ 9 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. The Company’s investments in consumer products companies with interests ranging between 20% and 50% , where the Company has significant influence over the investee, are accounted for using the equity method. Net income (loss) from such investments is recorded in Other (income) expense, net in the Consolidated Statements of Income. As of December 31, 2019 and 2018 , equity method investments included in Other assets in the Consolidated Balance Sheets were $50 and $46 , respectively. Unrelated third parties hold the remaining ownership interests in these investments. Investments with less than a 20% |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. As such, the most significant uncertainty in the Company’s assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairments, uncertain tax positions, tax valuation allowances, legal and other contingency reserves and charges related to U.S. tax reform (see Note 11 , Income Taxes ). Additionally, the Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments and retirement plan assets. 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. Actual results could ultimately differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s revenue contracts represent a single performance obligation to sell its products to trade customers. Sales are recorded at the time control of the products is transferred to trade customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of trade customers to direct the “use of” and “obtain” the benefit from our products. In evaluating the timing of the transfer of control of products to trade customers, the Company considers several control indicators, including significant risks and rewards of products, the Company’s right to payment and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to trade customers. Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration. Variable consideration includes expected sales returns and the cost of current and continuing promotional programs. Current promotional programs primarily include product listing allowances and co-operative advertising arrangements. Continuing promotional programs are predominantly consumer coupons and volume-based sales incentive arrangements. The cost of promotional programs is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. Adjustments to the cost of promotional programs in subsequent periods are generally not material, as the Company’s promotional programs are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Sales returns are generally accepted at the Company’s discretion and are not material to the Company’s Consolidated Financial Statements. The Company’s contracts with trade customers do not have significant financing components or non-cash consideration and the Company does not have unbilled revenue or significant amounts of prepayments from customers. The Company records Net sales excluding taxes collected on its sales to its trade customers. Shipping and handling activities are accounted for as contract fulfillment costs and classified as Selling, general and administrative expenses. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are classified as Selling, general and administrative expenses and were $1,275 , $1,255 and $1,183 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Marketing Costs | Marketing Costs The Company markets its products through advertising and other promotional activities. Advertising costs are included in Selling, general and administrative expenses and are expensed as incurred. Certain consumer and trade promotional programs, such as consumer coupons, are recorded as a reduction of sales. |
Cash and Cash equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. |
Inventories | Inventories The cost of approximately 80% |
Property, Plant and Equipment | Property, Plant and Equipment Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over-estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill and indefinite life intangible assets, such as the Company’s global brands, are subject to impairment tests at least annually or when events or changes in circumstances indicate that an asset may be impaired. These tests were performed and did not result in an impairment charge. Other intangible assets with finite lives, such as local brands and trademarks, customer relationships and non-compete agreements, are amortized over their estimated useful lives, generally ranging from 5 to 40 years. Amortization expense related to intangible assets is included in Other (income) expense, net, which is included in Operating profit. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect at the time such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. The Company recognizes interest expense and penalties related to unrecognized tax benefits within Provision for income taxes. |
Financial Instruments | Financial Instruments Derivative instruments are recorded as assets and liabilities at estimated fair value based on available market information. The Company’s derivative instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recognized in earnings each period. For cash flow hedges, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) and are recognized in earnings when the offsetting effect of the hedged item is also recognized in earnings. For hedges of the net investment in foreign subsidiaries, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) to offset the change in the value of the net investment being hedged. Cash flows related to hedges are classified in the same category as the cash flows from the hedged item in the Consolidated Statements of Cash Flows. The Company may also enter into certain foreign currency and interest rate instruments that economically hedge certain of its risks but do not qualify for hedge accounting. Changes in fair value of these derivative instruments, based on quoted market prices, are recognized in earnings each period. The Company’s derivative instruments and other financial instruments are more fully described in Note 7 , Fair Value Measurements and Financial Instruments along with the related fair value measurement considerations. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units (both performance-based and time-vested), based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes-Merton ( “ Black-Scholes ” ) option pricing model to estimate the fair value of stock option awards. In addition to performance conditions, performance-based restricted stock units also include a total shareholder return modifier. Because the total shareholder return modifier is considered a market condition, the Company uses a Monte-Carlo simulation model to determine the fair value of performance-based restricted stock units. The fair value of time-vested restricted stock units is determined based on the closing market price of the Company’s stock at the date of grant. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model are more fully described in Note 8 , Capital Stock and Stock-Based Compensation Plans. |
Currency Translation | Currency Translation The assets and liabilities of foreign subsidiaries, other than those operating in highly inflationary environments, are translated into U.S. dollars at year-end exchange rates with resulting translation gains and losses accumulated in a separate component of shareholders’ equity. Income and expense items are translated into U.S. dollars at average rates of exchange prevailing during the year. For subsidiaries operating in highly inflationary environments, local currency-denominated non-monetary assets, including inventories, goodwill and property, plant and equipment, are remeasured at their historical exchange rates, while local currency-denominated monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these operations are included in Net income attributable to Colgate-Palmolive Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. While the Company is currently assessing the impact of the new guidance, it is not expected to 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 new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. While the Company is currently assessing the impact of the new guidance, it is not expected to have a material impact on the Company’s Consolidated Financial Statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments- Credit Losses.” This ASU clarifies and addresses certain items related to amendments in ASU 2016-13. This new guidance is effective for the Company beginning on January 1, 2020. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2019, the FASB issued ASU No. 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates.” ASU 2019-07 clarified or improved the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective upon issuance and did not have a material impact on the Company’s Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825).” This ASU clarifies three topics related to financial instruments accounting. This new guidance is effective for the Company beginning on January 1, 2020. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In October 2018, the FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as Benchmark Interest Rate for Hedge Accounting Purposes.” The new guidance permits the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. This new guidance was effective for the Company on a prospective basis beginning on January 1, 2019, concurrently with the adoption of ASU 2017-12, and did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance was effective for the Company on a prospective or retrospective basis beginning on January 1, 2020, with early adoption permitted. The Company elected to adopt this guidance early, beginning on January 1, 2019 on a prospective basis. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans.” This new guidance removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and requires certain additional disclosures. This new guidance was effective for the Company on a retrospective basis beginning on January 1, 2020, with early adoption permitted. The Company elected to adopt this guidance early, beginning on January 1, 2019, on a retrospective basis. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This new guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance is effective for the Company beginning on January 1, 2020. Certain disclosure requirements in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which permits the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “TCJA” or “U.S. tax reform”) from Accumulated other comprehensive income (loss) to Retained earnings. This new guidance was effective for the Company beginning on January 1, 2019, with early adoption permitted, and must be applied either in the period of adoption or retrospectively to periods in which the effects of the TCJA are recognized. The Company elected to adopt this new guidance early, beginning on January 1, 2018, and reclassified $163 during the first quarter of 2018. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” amending the eligibility criteria for hedged items and transactions to expand an entity’s ability to hedge nonfinancial and financial risk components. The new guidance eliminates the requirement to separately measure and present hedge ineffectiveness and aligns the presentation of hedge gains and losses with the underlying hedge item. The new guidance also simplifies the hedge documentation and hedge effectiveness assessment requirements. The amended presentation and disclosure requirements must be adopted on a prospective basis, while any amendments to cash flow and net investment hedge relationships that exist on the date of adoption must be applied on a “modified retrospective” basis, meaning a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the year of adoption. The new guidance was effective for the Company on January 1, 2019 and did not have a material impact on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a stock-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance was effective for the Company on a prospective basis beginning on January 1, 2018 and did not impact the Company’s Consolidated Financial Statements, as it is not the Company’s practice to change either the terms or the conditions of stock-based payment awards once they are granted. In March 2017, the FASB issued ASU No. 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” changing the presentation of the net periodic benefit cost on the Statement of Income and limiting the amount of net periodic benefit cost eligible for capitalization to assets. The new guidance permits only the service cost component of net periodic benefit cost to be eligible for capitalization. The new guidance also requires entities to present the service cost component of net periodic benefit cost together with compensation costs arising from services rendered by employees during the period. The non-service related components of net periodic benefit cost, which include interest, expected return on assets, amortization of prior service costs and actuarial gains and losses, are required to be presented outside of Operating profit. The line item or items used to present the other components of net periodic benefit cost must be disclosed in the Notes to the Consolidated Financial Statements, if not separately described on the Statement of Income. The new presentation requirement was adopted on a “full retrospective” basis, meaning the standard is applied to all of the periods presented in the financial statements, while the limitation on capitalization was adopted on a prospective basis. Effective January 1, 2018, as required, the Company adopted this standard on a retrospective basis. As permitted by the new guidance, the Company used the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the basis for applying the retrospective presentation requirements. As a result, for all periods presented, only the service related component of pension and other postretirement benefit costs is included in Operating profit. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminating the requirement to calculate implied fair value, essentially eliminating step two from the goodwill impairment test. The new standard requires goodwill impairment to be based upon the results of step one of the impairment test, which is defined as the excess of the carrying value of a reporting unit over its fair value. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard is effective for the Company on a prospective basis beginning on January 1, 2020. This new guidance is expected to have no impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which provides additional guidance on evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The guidance requires an entity to evaluate if substantially all of the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, then the new guidance would define the transaction as an asset acquisition. If the threshold is not met, then the entity would, pursuant to the guidance, evaluate whether the assets meet the requirement that a business include, at a minimum, an input and substantive process that together significantly contribute to the ability to create outputs. The guidance was effective for the Company, on a prospective basis, beginning on January 1, 2018. This new guidance had no impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and payments are to be presented in the statement of cash flows. The guidance was effective for the Company on January 1, 2018. This new guidance had no impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This ASU introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. This new guidance is effective for the Company beginning on January 1, 2020 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which superseded Topic 840, “Leases.” which was further modified in ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” ASU No. 2018-11, “Leases (Topic 842) Targeted Improvements” and ASU No. 2019-01 “Leases (Topic 842) Codification Improvements” to clarify the implementation guidance. The new accounting standard was effective for the Company beginning on January 1, 2019 and required the recognition on the balance sheet of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The Company elected the optional transition method and adopted the new guidance on January 1, 2019, on a modified retrospective basis, with no restatement of prior period amounts. As allowed under the new accounting standard, the Company elected to apply practical expedients to carry forward the original lease determinations, lease classifications and accounting of initial direct costs for all asset classes at the time of adoption. The Company also elected not to separate lease components from non-lease components and to exclude short-term leases from its Consolidated Balance Sheet. The Company’s adoption of the new standard resulted in the recognition of right-of-use assets of $458 and liabilities of $574 , with no material cumulative effect adjustment to equity as of the date of adoption. In connection with the adoption of this guidance, as required, the Company reclassified certain restructuring reserves incurred in connection with the Global Growth and Efficiency Program and deferred rent liabilities as reductions to lease assets. Adoption of the new standard did not have a material impact on the Company’s Consolidated Statements of Income or Cash Flows. See Note 15 Leases for additional information. In May 2014, the FASB and the International Accounting Standards Board issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” by the FASB, provides a comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to its customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures. During 2016, the FASB issued several accounting updates (ASU No. 2016-08, 2016-10 and 2016-12) to clarify implementation guidance and correct unintended application of the guidance. The standard allows for either full retrospective adoption or modified retrospective adoption. The Company adopted the new standard on January 1, 2018, on a “modified retrospective” basis, which did not have a material impact on the Company’s Consolidated Financial Statements. As required, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the 2018 opening balance of retained earnings. Results for periods beginning on or after January 1, 2018 are presented under Topic 606, “Revenue from Contracts with Customers,” while prior period amounts are not adjusted and continue to be reported in accordance with the prior accounting guidance under Topic 605, “Revenue Recognition.” |
Reclassifications | Reclassifications |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of worldwide sales | The Company’s principal classes of products accounted for the following percentages of worldwide Net sales for the past three years: 2019 2018 2017 Oral Care 46 % 47 % 48 % Personal Care 20 % 20 % 19 % Home Care 18 % 18 % 18 % Pet Nutrition 16 % 15 % 15 % Total 100 % 100 % 100 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Total purchase price consideration of $730 has been allocated to the net assets acquired based on their respective estimated fair values as follows: Recognized amounts of assets acquired and liabilities assumed: Inventories $ 8 Other current assets 8 Other intangible assets 369 Goodwill 397 Other current liabilities (6 ) Deferred income taxes (46 ) Fair value of net assets acquired $ 730 The total purchase price consideration of $1,712 million has been allocated to the net assets acquired based on their respective estimated fair values as follows: Cash $ 30 Receivables 53 Inventories 70 Other current assets 18 Other intangible assets 1,051 Goodwill 923 Other current liabilities (67 ) Deferred income taxes (276 ) Noncontrolling interests (90 ) Fair value of net assets acquired $ 1,712 |
Restructuring and Related Imp_2
Restructuring and Related Implementation Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | For the years ended December 31, 2019 , 2018 and 2017 , restructuring and related implementation charges are reflected in the Consolidated Statements of Income as follows: 2019 2018 2017 Cost of sales $ 8 $ 31 $ 75 Selling, general and administrative expenses 60 33 86 Other (income) expense, net 57 88 152 Non-service related postretirement costs 7 9 20 Total Global Growth and Efficiency Program charges, pretax $ 132 $ 161 $ 333 Total Global Growth and Efficiency Program charges, aftertax $ 102 $ 125 $ 246 |
Schedule of Percent of Total Restructuring Charges Related To Segment for the period | Total charges incurred for the Global Growth and Efficiency Program related to initiatives undertaken by the following reportable operating segments: Total Program 2019 2018 2017 Charges North America 4 % 18 % 23 % 17 % Latin America 12 % 10 % 2 % 5 % Europe 4 % (2 )% 21 % 19 % Asia Pacific 6 % 13 % 5 % 4 % Africa/Eurasia (1 )% 5 % 3 % 5 % Hill ’ s Pet Nutrition 2 % 19 % 6 % 8 % Corporate 73 % 37 % 40 % 42 % Total 100 % 100 % 100 % 100 % |
Schedule of Restructuring and Related Costs Incurred to Date | Over the course of the Global Growth and Efficiency Program, the Company incurred total pretax charges of $1,854 ( $1,380 aftertax) in connection with the implementation of various projects as follows: Total Program Charges as of December 31, 2019 Employee-Related Costs $ 706 Incremental Depreciation 128 Asset Impairments 58 Other 962 Total $ 1,854 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity for the restructuring and related implementation charges, in the respective periods, discussed above and the related accruals: Employee-Related Costs Incremental Depreciation Asset Impairments Other Total Balance at January 1, 2017 $ 56 $ — $ — $ 125 $ 181 Charges 163 10 9 151 333 Cash payments (74 ) — — (170 ) (244 ) Charges against assets (21 ) (10 ) (9 ) — (40 ) Foreign exchange 3 — — 1 4 Other — — — — — Balance at December 31, 2017 $ 127 $ — $ — $ 107 $ 234 Charges 53 2 16 90 161 Cash payments (107 ) — — (60 ) (167 ) Charges against assets (9 ) (2 ) (16 ) — (27 ) Foreign exchange (4 ) — — — (4 ) Other — — — 5 5 Balance at December 31, 2018 $ 60 $ — $ — $ 142 $ 202 Charges 25 36 6 65 132 Cash payments (55 ) — — (58 ) (113 ) Charges against assets (7 ) (36 ) (6 ) (27 ) (76 ) Foreign exchange 3 — — — 3 Other — — — (48 ) (48 ) Balance at December 31, 2019 $ 26 $ — $ — $ 74 $ 100 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The net carrying value of Goodwill as of December 31, 2019 and 2018 by segment was as follows: 2019 2018 Oral, Personal and Home Care North America $ 737 $ 733 Latin America 212 220 Europe 2,234 1,302 Asia Pacific 186 185 Africa/Eurasia 124 75 Total Oral, Personal and Home Care 3,493 2,515 Pet Nutrition 15 15 Total Goodwill $ 3,508 $ 2,530 |
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | Other intangible assets as of December 31, 2019 and 2018 were comprised of the following: 2019 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trademarks - finite life $ 771 $ (381 ) $ 390 $ 771 $ (358 ) $ 413 Other finite life intangible assets 699 (169 ) 530 390 (133 ) 257 Indefinite life intangible assets 1,747 — 1,747 967 — 967 Total Other intangible assets $ 3,217 $ (550 ) $ 2,667 $ 2,128 $ (491 ) $ 1,637 |
Long-Term Debt and Credit Fac_2
Long-Term Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following at December 31: Weighted Average Interest Rate Maturities 2019 2018 Notes 2.2% 2021 - 2078 $ 6,988 $ 5,820 Commercial paper (0.4)% 2020 579 534 Finance Lease Obligations Various Various 20 — 7,587 6,354 Less: Current portion of long-term debt (254 ) — Total $ 7,333 $ 6,354 |
Schedule of Maturities of Long-term Debt | Excluding such obligations, scheduled maturities of long-term debt and finance leases outstanding as of December 31, 2019 , were as follows: Years Ended December 31, 2020 $ 267 2021 860 2022 903 2023 895 2024 498 Thereafter 3,595 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments | 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 as of December 31, 2019 and December 31, 2018 : Assets Liabilities Account Fair Value Account Fair Value Designated derivative instruments December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Interest rate swap contracts Other current assets $ — $ — Other accruals $ — $ 1 Interest rate swap contracts Other assets 4 — Other liabilities — 8 Foreign currency contracts Other current assets 6 20 Other accruals 15 8 Foreign currency contracts Other assets — — Other liabilities 14 21 Commodity contracts Other current assets — — Other accruals — — Total designated $ 10 $ 20 $ 29 $ 38 Other financial instruments Marketable securities Other current assets 23 10 Total other financial instruments $ 23 $ 10 |
Activity related to fair value hedges | The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustment for fair value hedges as of: December 31, 2019 December 31, 2018 Long-term debt: Carrying amount of hedged item $ 403 $ 888 Cumulative hedging adjustment included in the carrying amount $ 4 $ (10 ) |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following tables present the notional values as of: December 31, 2019 Foreign Currency Contracts Foreign Currency Debt Interest Rate Swaps Commodity Contracts Total Fair Value Hedges $ 388 $ — $ 400 $ — $ 788 Cash Flow Hedges $ 761 $ — $ — $ 20 $ 781 Net Investment Hedges $ 478 $ 3,856 $ — $ — $ 4,334 December 31, 2018 Foreign Currency Contracts Foreign Currency Debt Interest Rate Swaps Commodity Contracts Total Fair Value Hedges $ 327 $ — $ 900 $ — $ 1,227 Cash Flow Hedges $ 782 $ — $ — $ 14 $ 796 Net Investment Hedges $ 482 $ 1,396 $ — $ — $ 1,878 |
Derivative Instruments, Gain (Loss) | The following table presents the location and amount of gains (losses) recognized on the Company’s Consolidated Statements of Income: Twelve Months Ended December 31, 2019 2018 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Gain (loss) on hedges recognized in income: Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ (11 ) $ — $ — $ (2 ) Hedged items — — 11 — — 2 Foreign currency contracts designated as fair value hedges: Derivative instrument — 10 — — (1 ) — Hedged items — (10 ) — — 1 — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI 5 — — (4 ) — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI 1 — — 1 — — Total gain (loss) on hedges recognized in income $ 6 $ — $ — $ (3 ) $ — $ — |
Schedule Of Cash Flow And Net Investment Hedges Included In Accumulated Other Comprehensive Income (Loss) | The following table presents the location and amount of unrealized gains (losses) included in OCI: Twelve Months Ended December 31, 2019 2018 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI (9 ) 10 Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI — — Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments 4 33 Gain (loss) on hedged items (4 ) (33 ) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 12 93 Gain (loss) on hedged items (12 ) (93 ) Total unrealized gain (loss) on hedges recognized in OCI $ (9 ) $ 10 |
Capital Stock and Stock-Based_2
Capital Stock and Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Common And Treasury Stock Activity | A summary of common stock and treasury stock activity for the three years ended December 31 is as follows: Common Stock Outstanding Treasury Stock Balance, January 1, 2017 883,108,963 582,597,397 Common stock acquired (19,185,828 ) 19,185,828 Shares issued for stock options 9,670,988 (9,670,988 ) Shares issued for restricted stock units and other 1,106,995 (1,106,995 ) Balance, December 31, 2017 874,701,118 591,005,242 Common stock acquired (18,786,897 ) 18,786,897 Shares issued for stock options 6,040,920 (6,040,920 ) Shares issued for restricted stock units and other 957,651 (957,651 ) Balance, December 31, 2018 862,912,792 602,793,568 Common stock acquired (17,219,642 ) 17,219,642 Shares issued for stock options 8,145,777 (8,145,777 ) Shares issued for restricted stock units and other 862,852 (862,852 ) Balance, December 31, 2019 854,701,779 611,004,581 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Fair value is estimated using the Black-Scholes option pricing model with the assumptions summarized in the following table: 2019 2018 2017 Expected term of options 6 years 4.5 years 4.5 years Expected volatility rate 19.2 % 17.7 % 16.0 % Risk-free interest rate 1.5 % 2.8 % 1.8 % Expected dividend yield 2.3 % 2.5 % 2.2 % |
Schedule of Share-based Compensation, Performance Restricted Stock and Time-based Restricted Stock Units Activity | A summary of performance-based restricted stock unit activity during 2019 is presented below: Shares (in thousands) Grant Date Fair Value Per Award Performance-based restricted stock units as of January 1, 2019 — $ — Activity: Granted 365 67 Forfeited (19 ) 67 Performance-based restricted stock units as of December 31, 2019 346 $ 67 A summary of restricted stock unit activity during 2019 is presented below: Shares (in thousands) Weighted Average Grant Date Fair Value Per Award Restricted stock units as of January 1, 2019 2,474 $ 71 Activity: Granted 554 71 Vested (761 ) 70 Forfeited (64 ) 70 Restricted stock units as of December 31, 2019 2,203 $ 71 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity during 2019 is presented below: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Intrinsic Value of Unexercised In-the-Money Options Options outstanding, January 1, 2019 39,710 $ 67 Granted 5,364 72 Exercised (8,205 ) 61 Forfeited or expired (684 ) 70 Options outstanding, December 31, 2019 36,185 69 4 $ 63 Options exercisable, December 31, 2019 25,142 $ 69 3 $ 60 |
Retirement Plans and Other Re_2
Retirement Plans and Other Retiree Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Allocation of Plan Assets | The target asset allocation for the Company’s defined benefit plans is as follows: United States International Asset Category Equity securities 24 % 38 % Fixed income securities 68 % 45 % Real estate and other investments 8 % 17 % Total 100 % 100 % At December 31, 2019 the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows: Level of Valuation Pension Plans United States International Other Retiree Benefit Plans Cash and cash equivalents Level 1 $ 41 $ 15 $ 1 U.S. common stocks Level 1 49 3 1 International common stocks Level 1 — 3 — Pooled funds (1) Level 1 29 104 2 Fixed income securities (2) Level 2 1,067 14 20 Guaranteed investment contracts (3) Level 2 1 42 — 1,187 181 24 Investments valued using NAV per share (4) Domestic, developed and emerging markets equity funds 328 165 7 Fixed income funds (5) 177 196 3 Hedge funds (6) 3 17 — Multi-Asset funds (7) 155 2 2 Real estate funds (8) 41 25 1 704 405 13 Other assets and liabilities, net (9) (85 ) — — Total Investments $ 1,806 $ 586 $ 37 At December 31, 2018 the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows: Level of Valuation Pension Plans United States International Other Retiree Benefit Plans Cash and cash equivalents Level 1 $ 29 $ 9 $ 1 U.S. common stocks Level 1 75 3 3 International common stocks Level 1 — 4 — Pooled funds (1) Level 1 106 82 4 Fixed income securities (2) Level 2 865 24 28 Guaranteed investment contracts (3) Level 2 1 51 — 1,076 173 36 Investments valued using NAV per share (4) Domestic, developed and emerging markets equity funds 229 134 8 Fixed income funds (5) 116 173 4 Hedge funds (6) 56 6 2 Multi-Asset funds (7) 94 2 3 Real estate funds (8) 39 22 1 534 337 18 Other assets and liabilities, net (9) (42 ) — — Total Investments $ 1,568 $ 510 $ 54 _______ (1) Pooled funds primarily invest in U.S. and foreign equity securities, debt and money market securities. (2) The fixed income securities are traded over the counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of both December 31, 2019 and 2018, approximately 50% of the U.S. pension plan fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and corporate bonds. (3) The guaranteed investment contracts (“GICs”) represent contracts with insurance companies measured at the cash surrender value of each contract. The Level 2 valuation reflects that the cash surrender value is based principally on a referenced pool of investment funds with active redemption. (4) Investments that are measured at fair value using net asset value (“NAV”) per share as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the value of the underlying investments owned, minus its liabilities, divided by the number of shares outstanding. There are no unfunded commitments related to these investments. Redemption notice period primarily ranges from 0-3 months and redemption frequency windows range from daily to quarterly. (5) Fixed income funds primarily invest in U.S. government and investment grade corporate bonds. (6) Consists of investments in underlying hedge fund strategies that are primarily implemented through the use of long and short equity and fixed income securities and derivative instruments such as futures and options. (7) Multi-Asset funds primarily invest across a variety of asset classes, including global stocks and bonds, as well as alternative strategies. (8) Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager. (9) This category primarily includes unsettled trades for investments purchased and sold and dividend receivables. |
Defined benefit plans disclosures | The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans is as follows: Pension Plans Other Retiree Benefit Plans 2019 2018 2019 2018 2019 2018 United States International Change in Benefit Obligations Benefit obligations at beginning of year $ 2,147 $ 2,363 $ 787 $ 847 $ 876 $ 960 Service cost 1 1 14 14 15 16 Interest cost 90 86 22 21 41 38 Participants’ contributions — — 2 2 — — Acquisitions/plan amendments — — 3 4 — — Actuarial loss (gain) 181 (139 ) 82 (11 ) 166 (88 ) Foreign exchange impact — — 8 (40 ) 1 (5 ) Termination benefits (1) 7 9 — — — — Curtailments and settlements — (4 ) (9 ) (7 ) — — Benefit payments (154 ) (169 ) (35 ) (42 ) (49 ) (45 ) Other — — 2 (1 ) — — Benefit obligations at end of year $ 2,272 $ 2,147 $ 876 $ 787 $ 1,050 $ 876 Change in Plan Assets Fair value of plan assets at beginning of year $ 1,568 $ 1,812 $ 510 $ 575 $ 54 $ — Actual return on plan assets 262 (101 ) 76 (16 ) 8 (1 ) Company contributions 130 30 30 27 24 100 Participants’ contributions — — 2 3 — — Foreign exchange impact — — 12 (29 ) — — Settlements and acquisitions — (4 ) (9 ) (7 ) — — Benefit payments (154 ) (169 ) (35 ) (42 ) (49 ) (45 ) Other — — — (1 ) — — Fair value of plan assets at end of year $ 1,806 $ 1,568 $ 586 $ 510 $ 37 $ 54 Funded Status Benefit obligations at end of year $ 2,272 $ 2,147 $ 876 $ 787 $ 1,050 $ 876 Fair value of plan assets at end of year 1,806 1,568 586 510 37 54 Net amount recognized $ (466 ) $ (579 ) $ (290 ) $ (277 ) $ (1,013 ) $ (822 ) Amounts Recognized in Balance Sheet Noncurrent assets $ — $ — $ 13 $ 6 $ — $ — Current liabilities (28 ) (26 ) (13 ) (12 ) (13 ) (46 ) Noncurrent liabilities (438 ) (553 ) (290 ) (271 ) (1,000 ) (776 ) Net amount recognized $ (466 ) $ (579 ) $ (290 ) $ (277 ) $ (1,013 ) $ (822 ) Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Actuarial loss $ 910 $ 940 $ 238 $ 226 $ 388 $ 239 Transition/prior service cost 1 1 7 6 (1 ) (1 ) $ 911 $ 941 $ 245 $ 232 $ 387 $ 238 Accumulated benefit obligation $ 2,236 $ 2,090 $ 816 $ 731 $ — $ — Pension Plans Other Retiree Benefit Plans 2019 2018 2019 2018 2019 2018 United States International Weighted-Average Assumptions Used to Determine Benefit Obligations Discount rate 3.40 % 4.38 % 2.06 % 2.80 % 3.56 % 4.43 % Long-term rate of return on plan assets 6.30 % 6.60 % 3.38 % 4.06 % 6.30 % 6.60 % Long-term rate of compensation increase 3.50 % 3.50 % 2.83 % 2.86 % 3.50 % 3.50 % ESOP growth rate — % — % — % — % 10.00 % 10.00 % Medical cost trend rate of increase — % — % — % — % 6.00 % 6.00 % Interest Crediting Rate 3.21 % 4.38 % 0.85 % 0.85 % — % — % _________ (1) Represents pension and other retiree benefit enhancements incurred in 2019 and 2018 pursuant to the Global Growth and Efficiency Program. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Pension plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consisted of the following: Years Ended December 31, 2019 2018 Benefit Obligation Exceeds Fair Value of Plan Assets Projected benefit obligation $ 2,862 $ 2,882 Fair value of plan assets 2,094 2,007 Accumulated benefit obligation 875 2,689 Fair value of plan assets 166 1,924 Other Retiree Benefit plans with accumulated postretirement benefit obligation in excess of plan assets as of December 31 consisted of the following: Years Ended December 31, 2019 2018 Benefit Obligation Exceeds Fair Value of Plan Assets Accumulated postretirement benefit obligation $ 958 $ 807 Fair value of plan assets 37 54 |
Schedule of Net Benefit Costs | Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows: Pension Plans Other Retiree Benefit Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States International Components of Net Periodic Benefit Cost Service cost $ 1 $ 1 $ 1 $ 14 $ 14 $ 16 $ 15 $ 16 $ 13 Interest cost 90 86 94 22 21 22 41 38 40 Annual ESOP allocation — — — — — — — — — Expected return on plan assets (103 ) (115 ) (111 ) (19 ) (21 ) (22 ) (3 ) (2 ) — Amortization of transition and prior service costs (credits) — — — 1 — — — — — Amortization of actuarial loss 51 47 48 9 8 10 11 14 13 Net periodic benefit cost $ 39 $ 19 $ 32 $ 27 $ 22 $ 26 $ 64 $ 66 $ 66 Other postretirement charges 7 9 24 1 2 4 — — (3 ) Total pension cost $ 46 $ 28 $ 56 $ 28 $ 24 $ 30 $ 64 $ 66 $ 63 Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost Discount rate 4.38 % 3.73 % 4.27 % 2.80 % 2.53 % 2.59 % 4.43 % 3.80 % 4.41 % Long-term rate of return on plan assets 6.60 % 6.60 % 6.80 % 4.06 % 4.04 % 4.14 % 6.60 % 6.60 % 6.80 % Long-term rate of compensation increase 3.50 % 3.50 % 3.50 % 2.86 % 2.79 % 2.58 % — % — % — % ESOP growth rate — % — % — % — % — % — % 10.00 % 10.00 % 10.00 % Medical cost trend rate of increase — % — % — % — % — % — % 6.00 % 6.00 % 6.33 % Interest Crediting Rate 4.26 % 3.73 % 4.27 % 0.85 % 0.85 % 0.65 % — % — % — % |
Schedule of Expected Benefit Payments | Total benefit payments expected to be paid to participants in both funded and unfunded plans are estimated as follows: Pension Plans Years Ended December 31, United States International Other Retiree Benefit Plans Total 2020 $ 146 $ 36 $ 49 $ 231 2021 147 37 50 234 2022 151 37 51 239 2023 149 39 52 240 2024 152 42 53 247 2025-2029 722 219 272 1,213 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes | The components of Income before income taxes are as follows for the years ended December 31: 2019 2018 2017 United States $ 1,050 $ 1,175 $ 1,072 International 2,251 2,289 2,415 Total Income before income taxes $ 3,301 $ 3,464 $ 3,487 |
Provision for income taxes | The Provision for income taxes consists of the following for the years ended December 31: 2019 2018 2017 United States $ 180 $ 213 $ 338 International 594 693 975 Total Provision for income taxes $ 774 $ 906 $ 1,313 |
Schedule of components of deferred income tax benefit | Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows: 2019 2018 2017 Goodwill and intangible assets $ 34 $ 2 $ 135 Property, plant and equipment 12 (15 ) 84 Pension and other retiree benefits (13 ) (7 ) (192 ) Stock-based compensation (1 ) 9 (28 ) Tax credits and tax loss carryforwards 3 (4 ) (4 ) Deferred withholding tax (21 ) (100 ) (119 ) Other, net (33 ) 62 16 Total deferred tax benefit (provision) $ (19 ) $ (53 ) $ (108 ) |
Effective tax rate reconciliation | The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows: Percentage of Income before income taxes 2019 2018 2017 Tax at United States statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 0.6 1.0 0.5 Earnings taxed at other than United States statutory rate 4.7 5.6 (3.4 ) Charge for U.S. tax reform (1) — 2.3 7.9 Excess tax benefits from stock-based compensation (0.2 ) (0.3 ) (1.4 ) Foreign Tax Credit Carryback (2) — (1.7 ) — Benefit for foreign tax matters (3) (0.9 ) (0.4 ) — Foreign-derived intangible income benefit (1.3 ) (1.1 ) — Other, net (0.5 ) (0.2 ) (0.9 ) Effective tax rate 23.4 % 26.2 % 37.7 % _________ (1) On December 22, 2017, the TCJA was enacted, which, among other things, lowered the U.S. corporate income tax rate to 21% from 35% and established a modified territorial system requiring a mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries. Beginning in 2018, the TCJA also requires a minimum tax on certain earnings generated by foreign subsidiaries while providing for tax-free repatriation of such earnings through a 100% dividends-received deduction. The Company’s effective income tax rate in 2017 included a provisional charge of $275 , recorded in the fourth quarter of 2017, based on its initial analysis of the TCJA using information and estimates available as of February 15, 2018, the date on which the Company filed its Annual Report on Form 10-K for the year ended December 31, 2017. During 2018, the Company finalized its assessment of the impact of the TCJA and recognized an additional tax expense of $80 reflecting the impact of transition tax guidance issued by the U.S. Treasury and the update of certain estimates and calculations based on information available through the end of 2018. Any further guidance issued after December 31, 2018 may have an impact to the Company’s Provision for income tax in the period such guidance is effective. (2) In 2018, the Company generated excess foreign taxes associated with its foreign branch operations which are being carried back to 2017. This item is not expected to be recurring. (3) In December 2019, the Swiss government enacted changes to its corporate tax regime, which included, among other items, the repeal of certain preferential tax regimes and an increase to the cantonal tax rate for future periods. Additionally, the government provided transition rules which allowed companies to record goodwill for tax purposes, partially offsetting the impact on cash taxes of the higher cantonal rate over the next ten years. As a result of these changes, the Company recorded an estimated net benefit of $29 to the Provision for income taxes. In 2018, the benefit from a tax matter of $15 relates to several Supreme Court and Administrative Court rulings in a foreign jurisdiction allowing certain tax deductions which had the effect of reversing prior decisions. |
Components of deferred tax assets (liabilities) | The components of deferred tax assets (liabilities) are as follows at December 31: 2019 2018 Deferred tax liabilities: Goodwill and intangible assets $ (598 ) $ (344 ) Property, plant and equipment (303 ) (311 ) Deferred withholding tax (207 ) (181 ) Other (46 ) (75 ) Total deferred tax liabilities (1,154 ) (911 ) Deferred tax assets: Pension and other retiree benefits 381 354 Tax credits and tax loss carryforwards 93 89 Accrued liabilities 221 180 Stock-based compensation 88 95 Other 100 164 Total deferred tax assets 883 882 Valuation Allowance $ (59 ) $ (54 ) Net deferred tax assets $ 824 $ 828 Net deferred income taxes $ (330 ) $ (83 ) 2019 2018 Deferred taxes included within: Assets: Deferred income taxes $ 177 $ 152 Liabilities: Deferred income taxes (507 ) (235 ) Net deferred income taxes $ (330 ) $ (83 ) |
Unrecognized tax benefits activity | Unrecognized tax benefits activity for the years ended December 31, 2019 , 2018 and 2017 is summarized below: 2019 2018 2017 Unrecognized tax benefits: Balance, January 1 $ 190 $ 214 $ 201 Increases as a result of tax positions taken during the current year 14 14 13 Decreases of tax positions taken during prior years (21 ) (37 ) (9 ) Increases of tax positions taken during prior years 20 9 15 Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations (30 ) (6 ) (15 ) Effect of foreign currency rate movements — (4 ) 9 Balance, December 31 $ 173 $ 190 $ 214 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the years ended December 31, 2019 , 2018 and 2017 , earnings per share were as follows: 2019 2018 2017 Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Net income attributable to Colgate-Palmolive Company Shares (millions) Per Share Basic EPS $ 2,367 859.1 $ 2.76 $ 2,400 870.6 $ 2.76 $ 2,024 881.8 $ 2.30 Stock options and restricted stock units 2.0 2.4 6.0 Diluted EPS $ 2,367 861.1 $ 2.75 $ 2,400 873.0 $ 2.75 $ 2,024 887.8 $ 2.28 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Sales and Operating Profit by Segment | 2019 2018 2017 Net sales Oral, Personal and Home Care North America (1) $ 3,424 $ 3,348 $ 3,117 Latin America 3,606 3,605 3,887 Europe 2,450 2,502 2,394 Asia Pacific 2,707 2,734 2,781 Africa/Eurasia 981 967 983 Total Oral, Personal and Home Care 13,168 13,156 13,162 Pet Nutrition (2) 2,525 2,388 2,292 Total Net sales $ 15,693 $ 15,544 $ 15,454 _________ (1) Net sales in the U.S. for Oral, Personal and Home Care were $3,166 , $3,091 and $2,865 in 2019 , 2018 and 2017 , respectively. (2) Net sales in the U.S. for Pet Nutrition were $1,441 , $1,304 and $1,246 in 2019 , 2018 and 2017 , respectively. 2019 2018 2017 Operating profit Oral, Personal and Home Care North America $ 982 $ 1,037 $ 1,043 Latin America 963 995 1,171 Europe 624 634 605 Asia Pacific 749 777 842 Africa/Eurasia 187 173 180 Total Oral, Personal and Home Care 3,505 3,616 3,841 Pet Nutrition 703 680 677 Corporate (654 ) (602 ) (811 ) Total Operating profit $ 3,554 $ 3,694 $ 3,707 2019 2018 2017 Capital expenditures Oral, Personal and Home Care North America $ 43 $ 53 $ 74 Latin America 90 131 127 Europe 42 39 63 Asia Pacific 40 75 125 Africa/Eurasia 8 11 13 Total Oral, Personal and Home Care 223 309 402 Pet Nutrition 41 35 33 Corporate 71 92 118 Total Capital expenditures $ 335 $ 436 $ 553 2019 2018 2017 Depreciation and amortization Oral, Personal and Home Care North America $ 94 $ 88 $ 58 Latin America 84 82 82 Europe 72 70 74 Asia Pacific 100 103 101 Africa/Eurasia 8 8 8 Total Oral, Personal and Home Care 358 351 323 Pet Nutrition 55 53 53 Corporate 106 107 99 Total Depreciation and amortization $ 519 $ 511 $ 475 2019 2018 2017 Identifiable assets Oral, Personal and Home Care North America $ 3,576 $ 3,310 $ 2,608 Latin America 2,384 2,225 2,423 Europe 5,104 2,883 3,781 Asia Pacific 2,155 2,148 2,244 Africa/Eurasia 590 502 544 Total Oral, Personal and Home Care 13,809 11,068 11,600 Pet Nutrition 1,175 1,033 1,026 Corporate (1) 50 60 50 Total Identifiable assets (2) $ 15,034 $ 12,161 $ 12,676 ____________ (1) In 2019 , Corporate identifiable assets primarily consist of derivative instruments ( 2% ) and investments in equity securities ( 92% ). In 2018 , Corporate identifiable assets primarily consist of derivative instruments ( 7% ) and investments in equity securities ( 88% ). In 2017 , Corporate identifiable assets primarily consist of derivative instruments ( 5% ) and investments in equity securities ( 86% ). (2) Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $ 10,192 in 2019 , one-half of total long-lived assets of $8,259 in 2018 , and one-third of total long-lived assets of $7,908 in 2017 . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-use Assets and Liabilities for Operating Leases | As of December 31, 2019 , the Company ’ s right-of use assets and liabilities for operating leases were as follows: Other assets $ 502 Other accruals $ 145 Other liabilities 491 Total operating lease liabilities $ 636 |
Schedule of Minimum Lease Commitments Under Noncancellable Operating Leases | Lease commitments under noncancellable operating leases as of December 31, 2019 were as follows: 2020 $ 167 2021 127 2022 101 2023 63 2024 36 Thereafter 241 Total lease commitments $ 735 Less: Interest (99 ) Present value of lease liabilities $ 636 |
Schedule of Components of Operating Lease Expense | The components of the Company’s operating lease cost for the twelve months ended December 31, 2019 were as follows: Operating lease cost $ 169 Short-term lease cost 5 Variable lease cost 30 Sublease income — Total lease cost $ 204 |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental commitments under noncancellable operating leases as of December 31, 2018, prior to adoption of ASU 2016-02, were as follows: 2019 $ 193 2020 165 2021 123 2022 102 2023 51 Thereafter 32 |
Supplemental Income Statement_2
Supplemental Income Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | |
Other (income) expense, net | Other (income) expense, net 2019 2018 2017 Global Growth and Efficiency Program $ 57 $ 88 $ 152 Amortization of intangible assets 62 59 35 Equity income (9 ) (10 ) (11 ) Value-added tax matter in Brazil (30 ) — — Write-off of certain investments and fixed assets 51 1 14 Acquisition-related costs 21 — — Charges for a change in go-to-market strategy in certain countries 15 — — Other, net 29 10 (17 ) Total Other (income) expense, net $ 196 $ 148 $ 173 |
Interest expense, net | Interest (income) expense, net 2019 2018 2017 Interest incurred $ 193 $ 195 $ 156 Interest capitalized (1 ) (2 ) (3 ) Interest income (47 ) (50 ) (51 ) Total Interest (income) expense, net $ 145 $ 143 $ 102 |
Research and development and Advertising | 2019 2018 2017 Research and development $ 281 $ 277 $ 285 Advertising $ 1,694 $ 1,590 $ 1,573 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory, Current | Inventories by major class are as follows at December 31: Inventories 2019 2018 Raw materials and supplies $ 305 $ 253 Work-in-process 49 37 Finished goods 1,056 960 Total Inventories, net $ 1,410 $ 1,250 Non-current inventory, net (10 ) — Current Inventories, net $ 1,400 $ 1,250 |
Property, Plant and Equipment | Property, plant and equipment, net 2019 2018 Land $ 153 $ 152 Buildings 1,600 1,604 Manufacturing machinery and equipment 5,309 5,157 Other equipment 1,518 1,423 8,580 8,336 Accumulated depreciation (4,830 ) (4,455 ) Total Property, plant and equipment, net $ 3,750 $ 3,881 |
Other accruals | Other accruals 2019 2018 Accrued advertising and coupon redemption $ 525 $ 486 Accrued payroll and employee benefits 340 275 Accrued taxes other than income taxes 104 127 Restructuring accrual 85 148 Pension and other retiree benefits 54 84 Lease Liabilities Due in One Year 145 — Accrued interest 43 35 Derivatives 16 9 Other 605 532 Total Other accruals $ 1,917 $ 1,696 |
Other liabilities | Other liabilities 2019 2018 Pension and other retiree benefits $ 1,728 $ 1,600 Restructuring accrual 15 54 Long-Term Lease Liabilities 491 — Other 364 380 Total Other liabilities $ 2,598 $ 2,034 |
Supplemental Other Comprehens_2
Supplemental Other Comprehensive Income (Loss) Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Other comprehensive income (loss) components attributable to Colgate-Palmolive Company before tax and net of tax during the years ended December 31 were as follows: 2019 2018 2017 Pre-tax Net of Tax Pre-tax Net of Tax Pre-tax Net of Tax Cumulative translation adjustments $ 49 $ 27 $ (233 ) $ (218 ) $ 218 $ 285 Pension and other benefits: Net actuarial gain (loss), prior service costs and settlements during the period (204 ) (154 ) (21 ) (16 ) 21 9 Amortization of net actuarial loss, transition and prior service costs (1) 72 54 69 54 71 45 Retirement Plan and other retiree benefit adjustments (132 ) (100 ) 48 38 92 54 Cash flow hedges: Unrealized gains (losses) on cash flow hedges (9 ) (7 ) 10 8 (25 ) (16 ) Reclassification of (gains) losses into net earnings on cash flow hedges (2) (6 ) (5 ) 3 2 3 2 Gains (losses) on cash flow hedges (15 ) (12 ) 13 10 (22 ) (14 ) Total Other comprehensive income (loss) $ (98 ) $ (85 ) $ (172 ) $ (170 ) $ 288 $ 325 _________ (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10 , Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 7 , Fair Value Measurements and Financial Instruments for additional details. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Total First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Net sales $ 15,693 $ 3,884 $ 3,866 $ 3,928 $ 4,015 Gross profit 9,325 (1) 2,287 (3) 2,308 (5) 2,316 (7) 2,414 (9) Net income including noncontrolling interests 2,527 (2) 600 (4) 618 (6) 627 (8) 682 (10) Net income attributable to Colgate-Palmolive Company 2,367 (2) 560 (4) 586 (6) 578 (8) 643 (10) Earnings per common share: Basic 2.76 (2) 0.65 (4) 0.68 (6) 0.67 (8) 0.75 (10) Diluted 2.75 (2) 0.65 (4) 0.68 (6) 0.67 (8) 0.75 (10) 2018 Net sales $ 15,544 $ 4,002 $ 3,886 $ 3,845 $ 3,811 Gross profit 9,231 (11) 2,408 (13) 2,301 (15) 2,269 (17) 2,253 (19) Net income including noncontrolling interests 2,558 (12) 678 (14) 675 (16) 562 (18) 643 (20) Net income attributable to Colgate-Palmolive Company 2,400 (12) 634 (14) 637 (16) 523 (18) 606 (20) Earnings per common share: Basic 2.76 (12) 0.72 (14) 0.73 (16) 0.60 (18) 0.70 (20) Diluted 2.75 (12) 0.72 (14) 0.73 (16) 0.60 (18) 0.70 (20) ____________ Note: Basic and diluted earnings per share are computed independently for each quarter and the year-to-date period presented. Accordingly, the sum of the quarterly earnings per common share may not necessarily equal the earnings per share for the year-to-date period. (1) Gross profit for the full year of 2019 includes $8 of charges related to the Global Growth and Efficiency Program, and a $3 charge for acquisition-related costs. (2) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the full year of 2019 includes $102 of aftertax charges related to the Global Growth and Efficiency Program, a $20 aftertax charge for acquisition-related costs, a $20 aftertax benefit related to a value added tax matter in Brazil and a $29 tax benefit related to Swiss income tax reform. (3) Gross profit for the first quarter of 2019 includes $11 of charges related to the Global Growth and Efficiency Program. (4) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the first quarter of 2019 include $22 of aftertax charges related to the Global Growth and Efficiency Program. (5) Gross profit for the second quarter of 2019 includes $3 of benefit related to the Global Growth and Efficiency Program. (6) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the second quarter of 2019 includes $31 of aftertax charges related to the Global Growth and Efficiency Program. (7) Gross profit for the third quarter of 2019 includes $1 of charges related to the Global Growth and Efficiency Program. (8) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the third quarter of 2019 include $22 of aftertax charges related to the Global Growth and Efficiency Program and a $14 aftertax charge for acquisition-related costs. (9) Gross profit for the fourth quarter of 2019 includes $1 of benefit related to the Global Growth and Efficiency Program, and a $3 charge for acquisition-related costs. (10) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the fourth quarter of 2019 include $27 of aftertax charges related to the Global Growth and Efficiency Program, a $6 charge for acquisition-related costs, a $20 aftertax benefit related to a value added tax matter in Brazil and a $29 tax benefit related to Swiss income tax reform. (11) Gross profit for the full year of 2018 includes $31 of charges related to the Global Growth and Efficiency Program. (12) Net income including noncontrolling interests for the full year of 2018 includes $124 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the full year of 2018 include $125 of aftertax charges related to the Global Growth and Efficiency Program, an $80 charge related to U.S. tax reform and a $15 benefit from a foreign tax matter. (13) Gross profit for the first quarter of 2018 includes $6 of charges related to the Global Growth and Efficiency Program. (14) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the first quarter of 2018 include $20 of aftertax charges related to the Global Growth and Efficiency Program. (15) Gross profit for the second quarter of 2018 includes $5 of charges related to the Global Growth and Efficiency Program. (16) Net income including noncontrolling interests for the second quarter of 2018 includes $48 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the second quarter of 2018 include $51 of aftertax charges related to the Global Growth and Efficiency Program and a $15 benefit from a foreign tax matter. (17) Gross profit for the third quarter of 2018 includes $8 of charges related to the Global Growth and Efficiency Program. (18) Net income including noncontrolling interests, Net income attributable to Colgate-Palmolive Company and Earnings per common share for the third quarter of 2018 include $22 of aftertax charges related to the Global Growth and Efficiency Program and a $80 charge related to U.S. tax reform. (19) Gross profit for the fourth quarter of 2018 includes $12 of charges related to the Global Growth and Efficiency Program. (20) Net income including noncontrolling interests for the fourth quarter of 2018 include $34 of aftertax charges related to the Global Growth and Efficiency Program. Net income attributable to Colgate-Palmolive Company and Earnings per common share for the fourth quarter of 2018 include $32 of aftertax charges related to the Global Growth and Efficiency Program. |
Nature of Operations (Details)
Nature of Operations (Details) - business_segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of product segments (in segments) | 2 | ||
Sales Revenue, Net | Product Concentration Risk | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percent of net sales | 100.00% | 100.00% | 100.00% |
Sales Revenue, Net | Product Concentration Risk | Oral Care | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percent of net sales | 46.00% | 47.00% | 48.00% |
Sales Revenue, Net | Product Concentration Risk | Personal Care | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percent of net sales | 20.00% | 20.00% | 19.00% |
Sales Revenue, Net | Product Concentration Risk | Home Care | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percent of net sales | 18.00% | 18.00% | 18.00% |
Sales Revenue, Net | Product Concentration Risk | Pet Nutrition | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Percent of net sales | 16.00% | 15.00% | 15.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Principles of Consolidation, Shipping and Handling Costs, Inventories, & Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principles of Consolidation [Abstract] | |||
Investments accounted for using the equity method, minimum interest | 20.00% | ||
Investments accounted for using the equity method, maximum interest | 50.00% | ||
Equity method investments included in other assets | $ 50 | $ 46 | |
Investments accounted for using the cost method, maximum interest | 20.00% | ||
Inventories [Abstract] | |||
Approximate percentage of inventories determined using the first-in, first-out (FIFO) method | 80.00% | ||
Property, Plant and Equipment [Line Items] | |||
Selling, general and administrative expenses | $ 5,575 | 5,389 | $ 5,400 |
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Maximum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Shipping and Handling | |||
Property, Plant and Equipment [Line Items] | |||
Selling, general and administrative expenses | $ 1,275 | $ 1,255 | $ 1,183 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Goodwill and Other Intangibles (Details) - Local Brands, Trademarks, Customer Relationships, and Non-Compete Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible assets | 5 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible assets | 40 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets | $ 502 | ||
Present value of lease liabilities | $ 636 | ||
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Tax cuts and jobs act of 2017 reclassification from AOCI to retained earnings tax effect | $ 163 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets | $ 458 | ||
Present value of lease liabilities | $ 574 |
Acquisitions - Acquisitions (De
Acquisitions - Acquisitions (Details) € in Millions, $ in Millions | Jan. 31, 2020USD ($) | Sep. 19, 2019USD ($) | Sep. 19, 2019EUR (€) | Aug. 15, 2019USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 3,508 | $ 2,530 | |||||
Decrease in goodwill | 105 | ||||||
Laboratoires Filorga Cosmétiques | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 1,674 | € 1,516 | |||||
Consideration transferred, other | 38 | € 32 | |||||
Consideration transferred | 1,712 | ||||||
Other intangible assets | 1,051 | ||||||
Goodwill | 923 | ||||||
Increase in intangible current assets | 105 | ||||||
Nigeria Joint Venture | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred | $ 31 | ||||||
Percentage of voting interests acquired | 51.00% | ||||||
PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 730 | ||||||
Other intangible assets | 369 | ||||||
Goodwill | 397 | ||||||
Trademarks - finite life | Laboratoires Filorga Cosmétiques | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | 774 | ||||||
Trademarks - finite life | PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 231 | ||||||
Useful life | 25 years | ||||||
Customer Relationships | Laboratoires Filorga Cosmétiques | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 277 | ||||||
Useful life | 14 years | 14 years | |||||
Customer Relationships | PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 133 | ||||||
Minimum | Customer Relationships | PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 12 years | ||||||
Maximum | Customer Relationships | PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Useful life | 13 years | ||||||
Oral, Personal and Home Care | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 3,493 | 2,515 | |||||
North America | PCA Skin and Elta MD | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 397 | ||||||
Percent of goodwill deductible for tax purposes | 45.00% | ||||||
Europe | Oral, Personal and Home Care | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 2,234 | $ 1,302 | |||||
Europe | Oral, Personal and Home Care | Laboratoires Filorga Cosmétiques | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 923 | ||||||
Subsequent Event | Hello Product LLC | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire business | $ 351 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 19, 2019 | Dec. 31, 2018 | Jan. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,508 | $ 2,530 | ||
Laboratoires Filorga Cosmétiques | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 30 | |||
Receivables | 53 | |||
Inventories | 70 | |||
Other current assets | 18 | |||
Other intangible assets | 1,051 | |||
Goodwill | 923 | |||
Other current liabilities | (67) | |||
Deferred income taxes | (276) | |||
Noncontrolling interests | (90) | |||
Fair value of net assets acquired | $ 1,712 | |||
PCA Skin and Elta MD | ||||
Business Acquisition [Line Items] | ||||
Inventories | $ 8 | |||
Other current assets | 8 | |||
Other intangible assets | 369 | |||
Goodwill | 397 | |||
Other current liabilities | (6) | |||
Deferred income taxes | (46) | |||
Fair value of net assets acquired | $ 730 |
Restructuring and Related Imp_3
Restructuring and Related Implementation Charges - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)employees | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Total Global Growth and Efficiency Program charges, pretax | $ 57 | $ 88 | $ 152 |
Global Growth and Efficiency Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring program cost before tax | 1,854 | ||
Restructuring program total cost after tax | 1,380 | ||
Restructuring program cost, upcoming fiscal year, before tax | 132 | ||
Restructuring program cost, upcoming fiscal year, after tax | $ 102 | ||
Expected percent of total charges resulting in cash expenditure | 80.00% | ||
Pretax charges related to the Restructuring Program to date | $ 1,854 | ||
Restructuring and related cost incurred cost to date after tax | 1,380 | ||
Charges against assets | (76) | (27) | (40) |
Total Global Growth and Efficiency Program charges, pretax | $ 132 | 161 | 333 |
Global Growth and Efficiency Program | Pet Nutrition | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 10.00% | ||
Global Growth and Efficiency Program | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 40.00% | ||
Global Growth and Efficiency Program | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 15.00% | ||
Global Growth and Efficiency Program | Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | ||
Global Growth and Efficiency Program | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 20.00% | ||
Global Growth and Efficiency Program | Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | ||
Global Growth and Efficiency Program | Africa/Eurasia | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | ||
Global Growth and Efficiency Program | Employee-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 40.00% | ||
Pretax charges related to the Restructuring Program to date | $ 706 | ||
Charges against assets | (7) | (9) | (21) |
Total Global Growth and Efficiency Program charges, pretax | $ 25 | 53 | 163 |
Global Growth and Efficiency Program | Incremental Depreciation And Asset Impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 10.00% | ||
Global Growth and Efficiency Program | Charges Resulting Directly From Exit Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 30.00% | ||
Global Growth and Efficiency Program | Implementation Of New Strategies | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 20.00% | ||
Global Growth and Efficiency Program | Third party Incremental Cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Global Growth and Efficiency Program charges, pretax | $ 32 | 42 | 145 |
Global Growth and Efficiency Program | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Global Growth and Efficiency Program charges, pretax | 5 | $ 48 | $ 6 |
Global Growth and Efficiency Program | Land and Building | |||
Restructuring Cost and Reserve [Line Items] | |||
Total Global Growth and Efficiency Program charges, pretax | $ 28 | ||
Global Growth and Efficiency Program | Minimum | Expected Completion Date 2019 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected number of positions eliminated (in positions) | employees | 4,400 |
Restructuring and Related Imp_4
Restructuring and Related Implementation Charges - Summary of Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | $ 57 | $ 88 | $ 152 | ||||||||
Global Growth and Efficiency Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | 132 | 161 | 333 | ||||||||
Total Global Growth and Efficiency Program charges, aftertax | $ 27 | $ 22 | $ 22 | $ 32 | $ 22 | $ 51 | $ 20 | 102 | 125 | 246 | |
Global Growth and Efficiency Program | Cost of sales | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | $ 1 | $ 1 | $ 3 | $ 11 | $ 12 | $ 8 | $ 5 | $ 6 | 8 | 31 | 75 |
Global Growth and Efficiency Program | Selling, general and administrative expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | 60 | 33 | 86 | ||||||||
Global Growth and Efficiency Program | Other (income) expense, net | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | 57 | 88 | 152 | ||||||||
Global Growth and Efficiency Program | Non-service related postretirement costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total Global Growth and Efficiency Program charges, pretax | $ 7 | $ 9 | $ 20 |
Restructuring and Related Imp_5
Restructuring and Related Implementation Charges - Restructuring Charges Incurred, by Segment (Details) - Global Growth and Efficiency Program | 12 Months Ended | 75 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 100.00% | 100.00% | 100.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 100.00% | |||
Pet Nutrition | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 2.00% | 19.00% | 6.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 8.00% | |||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 73.00% | 37.00% | 40.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 42.00% | |||
North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 4.00% | 18.00% | 23.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 17.00% | |||
Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 12.00% | 10.00% | 2.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 5.00% | |||
Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 4.00% | (2.00%) | 21.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 19.00% | |||
Asia Pacific | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | 6.00% | 13.00% | 5.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 4.00% | |||
Africa/Eurasia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percent of total restructuring charges related to segment | (1.00%) | 5.00% | 3.00% | |
Percent of restructuring charges related to segment, total program accumulated charges | 5.00% |
Restructuring and Related Imp_6
Restructuring and Related Implementation Charges - Summary of Restructuring Charges, Cumulative to Date (Details) - Global Growth and Efficiency Program $ in Millions | Dec. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 1,854 |
Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 706 |
Incremental Depreciation | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 128 |
Asset Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 58 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 962 |
Restructuring and Related Imp_7
Restructuring and Related Implementation Charges - Restructuring Activity and Related Accruals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 57 | $ 88 | $ 152 |
Global Growth and Efficiency Program | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 202 | 234 | 181 |
Charges | 132 | 161 | 333 |
Cash payments | (113) | (167) | (244) |
Charges against assets | (76) | (27) | (40) |
Foreign exchange | 3 | (4) | 4 |
Other | (48) | 5 | 0 |
Ending balance | 100 | 202 | 234 |
Global Growth and Efficiency Program | Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 60 | 127 | 56 |
Charges | 25 | 53 | 163 |
Cash payments | (55) | (107) | (74) |
Charges against assets | (7) | (9) | (21) |
Foreign exchange | 3 | (4) | 3 |
Other | 0 | 0 | 0 |
Ending balance | 26 | 60 | 127 |
Global Growth and Efficiency Program | Incremental Depreciation | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Charges | 36 | 2 | 10 |
Cash payments | 0 | 0 | 0 |
Charges against assets | (36) | (2) | (10) |
Foreign exchange | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Global Growth and Efficiency Program | Asset Impairments | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Charges | 6 | 16 | 9 |
Cash payments | 0 | 0 | 0 |
Charges against assets | (6) | (16) | (9) |
Foreign exchange | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Global Growth and Efficiency Program | Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 142 | 107 | 125 |
Charges | 65 | 90 | 151 |
Cash payments | (58) | (60) | (170) |
Charges against assets | (27) | 0 | 0 |
Foreign exchange | 0 | 0 | 1 |
Other | (48) | 5 | 0 |
Ending balance | $ 74 | $ 142 | $ 107 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Goodwill | $ 3,508 | $ 2,530 |
Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | 3,493 | 2,515 |
Pet Nutrition | ||
Goodwill [Line Items] | ||
Goodwill | 15 | 15 |
North America | Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | 737 | 733 |
Latin America | Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | 212 | 220 |
Europe | Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | 2,234 | 1,302 |
Asia Pacific | Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | 186 | 185 |
Africa/Eurasia | Oral, Personal and Home Care | ||
Goodwill [Line Items] | ||
Goodwill | $ 124 | $ 75 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite and indefinite-lived intangible assets [Line Items] | ||
Finite & indefinite lived intangibles, gross | $ 3,217 | $ 2,128 |
Finite-lived intangible assets, accumulated amortization, net | (550) | (491) |
Intangible assets, net (excluding goodwill) | 2,667 | 1,637 |
Indefinite life intangible assets | ||
Finite and indefinite-lived intangible assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 1,747 | 967 |
Trademarks - finite life | ||
Finite and indefinite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, gross | 771 | 771 |
Finite-lived intangible assets, accumulated amortization, net | (381) | (358) |
Finite-lived intangible assets, net | 390 | 413 |
Other finite life intangible assets | ||
Finite and indefinite-lived intangible assets [Line Items] | ||
Finite-lived intangible assets, gross | 699 | 390 |
Finite-lived intangible assets, accumulated amortization, net | (169) | (133) |
Finite-lived intangible assets, net | $ 530 | $ 257 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 62 | $ 59 | $ 35 |
Annual estimated amortization expense, year 1 | 75 | ||
Annual estimated amortization expense, year 2 | 75 | ||
Annual estimated amortization expense, year 3 | 75 | ||
Annual estimated amortization expense, year 4 | 75 | ||
Annual estimated amortization expense, year 5 | $ 75 |
Long-Term Debt and Credit Fac_3
Long-Term Debt and Credit Facilities - Components of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 7,587 | $ 6,354 |
Less: Current portion of long-term debt | (254) | 0 |
Total debt, excluding current portion of long-term debt | $ 7,333 | $ 6,354 |
Weighted-average interest rate on short term borrowings | 1.80% | 5.30% |
Scheduled maturities of long-term debt [Abstract] | ||
2020 | $ 267 | |
2021 | 860 | |
2022 | 903 | |
2023 | 895 | |
2024 | 498 | |
Thereafter | $ 3,595 | |
Notes | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.20% | |
Total debt | $ 6,988 | $ 5,820 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | (0.40%) | |
Total debt | $ 579 | 534 |
Finance Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total debt | $ 20 | |
Finance Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 |
Long-Term Debt and Credit Fac_4
Long-Term Debt and Credit Facilities - Debt Issuances (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2019 | Mar. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Debt instrument term | 364 days | |||
Seven Year notes at 0.50 Percent Number | ||||
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Fixed interest rate | 0.50% | |||
Face amount | € 500,000,000 | |||
Debt instrument term | 7 years | |||
Fifteen Year notes at 1.375 Percent Number | ||||
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Fixed interest rate | 1.375% | |||
Face amount | € 500,000,000 | |||
Debt instrument term | 15 years | |||
Two Year Notes at 0.00 Percent Number | ||||
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Fixed interest rate | 0.00% | 0.00% | ||
Face amount | € 500,000,000 | |||
Debt instrument term | 2 years | |||
Twenty Year Notes at 0.875 Percent Number | ||||
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Fixed interest rate | 0.875% | 0.875% | ||
Face amount | $ | $ 500 | |||
Debt instrument term | 20 years | |||
1.75 Percent Number | ||||
Schedule of U.S. dollar and Euro denominated notes [Line Items] | ||||
Fixed interest rate | 1.75% | 1.75% | ||
Face amount | € 500,000,000 |
Long-Term Debt and Credit Fac_5
Long-Term Debt and Credit Facilities - Summary of Credit Facilities (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2019 | Nov. 30, 2018 | |
Line of credit facility [Line Items] | |||
Unused borrowing capacity | $ 4,594 | ||
Debt instrument term | 364 days | ||
Amended Domestic Revolving Credit Facility 2650 Million Capacity | |||
Line of credit facility [Line Items] | |||
Maximum borrowing capacity | $ 2,650 | ||
Term extension | 1 year | ||
Amended Foreign Revolving Credit Facility 1500 Million Capacity | |||
Line of credit facility [Line Items] | |||
Maximum borrowing capacity | $ 1,500 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Additional Information, Foreign Exchange Risk (Details) | 12 Months Ended |
Dec. 31, 2019country_and_territory | |
Fair Value Disclosures [Abstract] | |
Minimum number of countries and territories serving consumers (more than) (in countries and territories) | 200 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Fair Value of Derivative Instruments and Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Designated derivative instruments | ||
Derivative asset | $ 10 | $ 20 |
Derivative liability | 29 | 38 |
Other financial instruments | ||
Investments fair value | 23 | 10 |
Other current assets | ||
Other financial instruments | ||
Marketable securities | 23 | 10 |
Interest rate swap contracts | Other current assets | ||
Designated derivative instruments | ||
Derivative asset | 0 | 0 |
Interest rate swap contracts | Other accruals | ||
Designated derivative instruments | ||
Derivative liability | 0 | 1 |
Interest rate swap contracts | Other assets | ||
Designated derivative instruments | ||
Derivative asset | 4 | 0 |
Interest rate swap contracts | Other liabilities | ||
Designated derivative instruments | ||
Derivative liability | 0 | 8 |
Foreign currency contracts | Other current assets | ||
Designated derivative instruments | ||
Derivative asset | 6 | 20 |
Foreign currency contracts | Other accruals | ||
Designated derivative instruments | ||
Derivative liability | 15 | 8 |
Foreign currency contracts | Other assets | ||
Designated derivative instruments | ||
Derivative asset | 0 | 0 |
Foreign currency contracts | Other liabilities | ||
Designated derivative instruments | ||
Derivative liability | 14 | 21 |
Commodity contracts | Other current assets | ||
Designated derivative instruments | ||
Derivative asset | 0 | 0 |
Commodity contracts | Other accruals | ||
Designated derivative instruments | ||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements and F_5
Fair Value Measurements and Financial Instruments - Carrying Value and Estimated Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying value of long-term debt | $ 7,587 | $ 6,354 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Carrying amount of hedged item | 403 | 888 |
Cumulative hedging adjustment included in the carrying amount | 4 | (10) |
Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt | $ 8,056 | $ 6,434 |
Fair Value Measurements and F_6
Fair Value Measurements and Financial Instruments - Schedule of Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | $ (9) | |
Gain (loss) recognized in OCI | $ 10 | |
Foreign currency contracts | ||
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | (9) | |
Gain (loss) recognized in OCI | 10 | |
Activity related to net investment hedges [Abstract] | ||
Gain (loss) on instruments | 4 | |
Gain (loss) on instruments | 33 | |
Gain (loss) on hedged items | (4) | |
Gain (loss) on hedged items | (33) | |
Foreign Currency Debt | ||
Activity related to net investment hedges [Abstract] | ||
Gain (loss) on instruments | 12 | |
Gain (loss) on instruments | 93 | |
Gain (loss) on hedged items | (12) | |
Gain (loss) on hedged items | (93) | |
Commodity contracts | ||
Activity related to cash flow hedges [Abstract] | ||
Gain (loss) recognized in OCI | 0 | |
Gain (loss) recognized in OCI | 0 | |
Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 788 | 1,227 |
Fair Value Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 388 | 327 |
Fair Value Hedging | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Fair Value Hedging | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 400 | 900 |
Fair Value Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 781 | 796 |
Cash Flow Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 761 | 782 |
Cash Flow Hedging | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Cash Flow Hedging | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Cash Flow Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 20 | 14 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 4,334 | 1,878 |
Net Investment Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 478 | 482 |
Net Investment Hedging | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 3,856 | 1,396 |
Net Investment Hedging | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Net Investment Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional value of derivative | 0 | 0 |
Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on hedges recognized in income | 6 | (3) |
Cost of sales | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 |
Amount reclassified from OCI | 5 | |
Cost of sales | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 |
Cost of sales | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 1 | |
Cost of sales | Cash Flow Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | (4) | |
Cost of sales | Cash Flow Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 1 | |
Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on hedges recognized in income | 0 | 0 |
Selling, general and administrative expenses | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | 10 | (1) |
Gain (loss) on hedged items | (10) | 1 |
Amount reclassified from OCI | 0 | |
Selling, general and administrative expenses | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 |
Selling, general and administrative expenses | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 0 | |
Selling, general and administrative expenses | Cash Flow Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 0 | |
Selling, general and administrative expenses | Cash Flow Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 0 | |
Interest (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on hedges recognized in income | 0 | 0 |
Interest (income) expense, net | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 |
Amount reclassified from OCI | 0 | |
Interest (income) expense, net | Interest rate swap contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instrument | (11) | (2) |
Gain (loss) on hedged items | 11 | 2 |
Interest (income) expense, net | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | $ 0 | |
Interest (income) expense, net | Cash Flow Hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | 0 | |
Interest (income) expense, net | Cash Flow Hedging | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from OCI | $ 0 |
Capital Stock and Stock-Based_3
Capital Stock and Stock-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Jun. 18, 2018USD ($) | May 10, 2013plan | |
Preference Stock [Abstract] | |||||
Shares authorized (in shares) | shares | 50,262,150 | ||||
Stock Repurchases [Abstract] | |||||
Repurchased stock | $ 1,202 | $ 1,238 | $ 1,399 | ||
Stock-Based Compensation [Abstract] | |||||
Number of stockholder approved plans, current | plan | 1 | ||||
Total stock-based compensation expense charged against pretax income | 100 | 109 | 127 | ||
Total income tax benefit from stock compensation | $ 20 | $ 25 | $ 42 | ||
Weighted-average estimated fair value of stock options granted (in dollars per share) | $ / shares | $ 10.48 | $ 9.48 | $ 8.37 | ||
Stock-based compensation, additional disclosures [Abstract] | |||||
Tax benefit from exercise of stock options and vesting of restricted stock unit awards | $ 6 | $ 12 | $ 47 | ||
Proceeds from exercise of stock options | $ 498 | $ 329 | 507 | ||
Stock Option Plans | |||||
Additional disclosures pertaining to stock based compensation [Abstract] | |||||
Vesting period (in years) | 3 years | ||||
Number of shares available for grant (in shares) | shares | 37,758,000 | ||||
Unrecognized compensation expense | $ 32 | ||||
Unrecognized compensation expense, weighted-average period of recognition in years | 1 year 6 months | ||||
Stock-based compensation, additional disclosures [Abstract] | |||||
Contractual term (in years) | 8 years | 6 years | |||
Total intrinsic value of options exercised | $ 84 | $ 92 | 201 | ||
Program 2018 | |||||
Stock Repurchases [Abstract] | |||||
Stock repurchase program, authorized amount | $ 5,000 | ||||
Performance Shares | |||||
Additional disclosures pertaining to stock based compensation [Abstract] | |||||
Granted (in shares) | shares | 365,000 | ||||
Performance Shares | Incentive Stock Plans | |||||
Additional disclosures pertaining to stock based compensation [Abstract] | |||||
Vesting period (in years) | 3 years | ||||
Unrecognized compensation expense | $ 17 | ||||
Time-Vested Stock | |||||
Additional disclosures pertaining to stock based compensation [Abstract] | |||||
Granted (in shares) | shares | 554,000 | ||||
Time-Vested Stock | Incentive Stock Plans | |||||
Additional disclosures pertaining to stock based compensation [Abstract] | |||||
Vesting period (in years) | 3 years | ||||
Number of shares available for grant (in shares) | shares | 13,200,000 | ||||
Unrecognized compensation expense | $ 44 | ||||
Unrecognized compensation expense, weighted-average period of recognition in years | 2 years 2 months 12 days | ||||
Total fair value of shares vested | $ 53 | $ 55 | $ 66 |
Capital Stock and Stock-Based_4
Capital Stock and Stock-Based Compensation Plans - Summary of Common Stock and Treasury Stock Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Common Stock Activity [Roll Forward] | |||
Common stock balance, January 1 (in shares) | 862,912,792 | 874,701,118 | 883,108,963 |
Common stock acquired (in shares) | (17,219,642) | (18,786,897) | (19,185,828) |
Shares issued for stock options (in shares) | 8,145,777 | 6,040,920 | 9,670,988 |
Shares issued for restricted stock and other (in shares) | 862,852 | 957,651 | 1,106,995 |
Common stock balance, December 31 (in shares) | 854,701,779 | 862,912,792 | 874,701,118 |
Summary Of Treasury Stock Activity [Roll Forward] | |||
Treasury stock balance, January 1 (in shares) | 602,793,568 | 591,005,242 | 582,597,397 |
Common stock acquired (in shares) | 17,219,642 | 18,786,897 | 19,185,828 |
Shares issued for stock options (in shares) | (8,145,777) | (6,040,920) | (9,670,988) |
Shares issued for restricted stock and other (in shares) | (862,852) | (957,651) | (1,106,995) |
Treasury stock balance, December 31 (in shares) | 611,004,581 | 602,793,568 | 591,005,242 |
Capital Stock and Stock-Based_5
Capital Stock and Stock-Based Compensation Plans - Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected term (in years) | 6 years | 4 years 6 months | 4 years 6 months |
Expected volatility rate (in hundredths) | 19.20% | 17.70% | 16.00% |
Risk-free rate (in hundredths) | 1.50% | 2.80% | 1.80% |
Expected dividend yield (in hundredths) | 2.30% | 2.50% | 2.20% |
Capital Stock and Stock-Based_6
Capital Stock and Stock-Based Compensation Plans - Summary of Performance Restricted Stock Activity (Details) - Performance Shares shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Summary of restricted stock award activity [Roll Forward] | |
Restricted stock awards - beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 365 |
Forfeited (in shares) | shares | (19) |
Restricted stock awards - ending balance (in shares) | shares | 346 |
Weighted average grant date fair value per award [Roll Forward] | |
Weighted average grant date fair value of restricted stock awards - beginning of period (in dollars per share) | $ / shares | $ 0 |
Weighted average grant date fair value of restricted stock awards - shares granted (in dollars per share) | $ / shares | 67 |
Weighted average grant date fair value of restricted stock awards - shares forfeited (in dollars per share) | $ / shares | 67 |
Weighted average grant date fair value of restricted stock awards - end of period (in dollars per share) | $ / shares | $ 67 |
Capital Stock and Stock-Based_7
Capital Stock and Stock-Based Compensation Plans - Summary of Restricted Stock Activity (Details) - Time-Vested Stock shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Summary of restricted stock award activity [Roll Forward] | |
Restricted stock awards - beginning balance (in shares) | shares | 2,474 |
Granted (in shares) | shares | 554 |
Vested (in shares) | shares | (761) |
Forfeited (in shares) | shares | (64) |
Restricted stock awards - ending balance (in shares) | shares | 2,203 |
Weighted average grant date fair value per award [Roll Forward] | |
Weighted average grant date fair value of restricted stock awards - beginning of period (in dollars per share) | $ / shares | $ 71 |
Weighted average grant date fair value of restricted stock awards - shares granted (in dollars per share) | $ / shares | 71 |
Weighted average grant date fair value of restricted stock awards - shares vested (in dollars per share) | $ / shares | 70 |
Weighted average grant date fair value of restricted stock awards - shares forfeited (in dollars per share) | $ / shares | 70 |
Weighted average grant date fair value of restricted stock awards - end of period (in dollars per share) | $ / shares | $ 71 |
Capital Stock and Stock-Based_8
Capital Stock and Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Summary of stock option plan activity [Roll Forward] | |
Options - beginning balance (in shares) | shares | 39,710 |
Granted (in shares) | shares | 5,364 |
Exercised (in shares) | shares | (8,205) |
Forfeited or expired (in shares) | shares | (684) |
Options - ending balance (in shares) | shares | 36,185 |
Options exercisable (in shares) | shares | 25,142 |
Additional disclosures pertaining to stock options [Abstract] | |
Weighted average exercise price of options - beginning of period (in dollars per share) | $ / shares | $ 67 |
Weighted average exercise price of options - shares granted (in dollars per share) | $ / shares | 72 |
Weighted average exercise price of options - shares exercised (in dollars per share) | $ / shares | 61 |
Weighted average exercise price of options - shares forfeited or expired (in dollars per share) | $ / shares | 70 |
Weighted average exercise price of options - end of period (in dollars per share) | $ / shares | 69 |
Weighted average exercise price of options exercisable - end of period (in dollars per share) | $ / shares | $ 69 |
Weighted average remaining contractual life, options outstanding (in years) | 4 years |
Weighted average remaining contractual life, options exercisable (in years) | 3 years |
Value of unexercised in-the-money options, options outstanding | $ | $ 63 |
Value of unexercised in-the-money options, options exercisable | $ | $ 60 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Shares in ESOP (in shares) | 13,359,448 | 15,806,529 | |
Outstanding borrowings in the ESOP | $ 2 | ||
Common shares released and allocated to participant accounts (in shares) | 11,651,749 | ||
Common shares available for future allocation to participant accounts (in shares) | 1,707,699 | ||
Annual ESOP expense | $ 0 | $ 0 | $ 0 |
Dividends paid by the Company on shares held by the ESOP | 25 | 29 | 32 |
Company contributions to the ESOP | $ 0 | $ 0 | $ 0 |
Retirement Plans and Other Re_3
Retirement Plans and Other Retiree Benefits - Schedule of Target Asset Allocation (Details) | Dec. 31, 2019 |
United States | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 100.00% |
International | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 100.00% |
Equity securities | United States | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 24.00% |
Equity securities | International | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 38.00% |
Fixed income securities | United States | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 68.00% |
Fixed income securities | International | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 45.00% |
Real estate and other investments | United States | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 8.00% |
Real estate and other investments | International | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |
Target asset allocation | 17.00% |
Retirement Plans and Other Re_4
Retirement Plans and Other Retiree Benefits - Allocation of Plan Assets and Level of Valuation Input, by Major Asset Category (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of fixed income assets invested in US treasury or agency securities | 50.00% | 50.00% | |
Other Retiree Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 37 | $ 54 | $ 0 |
Other Retiree Benefit Plans | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 36 | |
Other Retiree Benefit Plans | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 18 | |
Other Retiree Benefit Plans | Cash and cash equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Retiree Benefit Plans | U.S. common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
Other Retiree Benefit Plans | International common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Retiree Benefit Plans | Pooled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 4 | |
Other Retiree Benefit Plans | Fixed income securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 28 | |
Other Retiree Benefit Plans | Guaranteed investment contracts | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other Retiree Benefit Plans | Domestic, developed and emerging markets equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 8 | |
Other Retiree Benefit Plans | Fixed income funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Other Retiree Benefit Plans | Hedge funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Other Retiree Benefit Plans | Multi-Asset funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 3 | |
Other Retiree Benefit Plans | Real estate funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Other Retiree Benefit Plans | Other assets and liabilities, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,806 | 1,568 | 1,812 |
United States | Pension Plans | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,187 | 1,076 | |
United States | Pension Plans | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 704 | 534 | |
United States | Pension Plans | Cash and cash equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 29 | |
United States | Pension Plans | U.S. common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 75 | |
United States | Pension Plans | International common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Pension Plans | Pooled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 106 | |
United States | Pension Plans | Fixed income securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,067 | 865 | |
United States | Pension Plans | Guaranteed investment contracts | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
United States | Pension Plans | Domestic, developed and emerging markets equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 328 | 229 | |
United States | Pension Plans | Fixed income funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 177 | 116 | |
United States | Pension Plans | Hedge funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 56 | |
United States | Pension Plans | Multi-Asset funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 155 | 94 | |
United States | Pension Plans | Real estate funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 39 | |
United States | Pension Plans | Other assets and liabilities, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (85) | (42) | |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 586 | 510 | $ 575 |
International | Pension Plans | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 181 | 173 | |
International | Pension Plans | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 405 | 337 | |
International | Pension Plans | Cash and cash equivalents | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15 | 9 | |
International | Pension Plans | U.S. common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
International | Pension Plans | International common stocks | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
International | Pension Plans | Pooled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 104 | 82 | |
International | Pension Plans | Fixed income securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 24 | |
International | Pension Plans | Guaranteed investment contracts | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 51 | |
International | Pension Plans | Domestic, developed and emerging markets equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 165 | 134 | |
International | Pension Plans | Fixed income funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 196 | 173 | |
International | Pension Plans | Hedge funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 6 | |
International | Pension Plans | Multi-Asset funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
International | Pension Plans | Real estate funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 22 | |
International | Pension Plans | Other assets and liabilities, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Plans and Other Re_5
Retirement Plans and Other Retiree Benefits - Additional Information, U.S. Plans (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term rate of return on plan assets | 6.30% | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investments in Company's common stock | 3.00% | 5.00% |
U.S. plans assets sold to Company (in shares) | 588,334 | 384,004 |
U.S. plans assets purchased to Company (in shares) | 0 | 0 |
Dividends received by plans on the Company’s common stock | $ 2 | $ 3 |
Long-term rate of return on plan assets | 6.60% |
Retirement Plans and Other Re_6
Retirement Plans and Other Retiree Benefits - Summary of Defined Benefit and Other Retiree Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts Recognized in Balance Sheet | |||
Current liabilities | $ (54) | $ (84) | |
Pension Plans | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Long-term rate of return on plan assets | 6.30% | ||
Other Retiree Benefit Plans | |||
Change in Benefit Obligations | |||
Benefit obligations at beginning of year | $ 876 | 960 | |
Service cost | 15 | 16 | $ 13 |
Interest cost | 41 | 38 | 40 |
Participants’ contributions | 0 | 0 | |
Acquisitions/plan amendments | 0 | 0 | |
Actuarial loss (gain) | 166 | (88) | |
Foreign exchange impact | 1 | (5) | |
Termination benefits | 0 | 0 | |
Curtailments and settlements | 0 | 0 | |
Benefit payments | (49) | (45) | |
Other | 0 | 0 | |
Benefit obligations at end of year | 1,050 | 876 | 960 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 54 | 0 | |
Actual return on plan assets | 8 | (1) | |
Company contributions | 24 | 100 | |
Participants’ contributions | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Settlements and acquisitions | 0 | 0 | |
Benefit payments | (49) | (45) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 37 | 54 | 0 |
Funded Status | |||
Benefit obligations at end of year | 1,050 | 876 | 960 |
Fair value of plan assets at end of year | 37 | 54 | 0 |
Net amount recognized | (1,013) | (822) | |
Amounts Recognized in Balance Sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (13) | (46) | |
Noncurrent liabilities | (1,000) | (776) | |
Net amount recognized | (1,013) | (822) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Actuarial loss | 388 | 239 | |
Transition/prior service cost | (1) | (1) | |
Amounts recognized in accumulated other comprehensive income | $ 387 | $ 238 | |
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Discount rate | 3.56% | 4.43% | |
Long-term rate of return on plan assets | 6.30% | 6.60% | |
Long-term rate of compensation increase | 3.50% | 3.50% | |
ESOP growth rate | 10.00% | 10.00% | |
Medical cost trend rate of increase | 6.00% | 6.00% | |
Interest Crediting Rate | 0.00% | 0.00% | |
Assumed medical cost trend rates [Abstract] | |||
Medical cost trend rate assumed for next fiscal year | 6.00% | ||
Ultimate medical cost trend rate | 4.75% | ||
Year which ultimate medical cost trend rate is reached | 2025 | ||
United States | Pension Plans | |||
Change in Benefit Obligations | |||
Benefit obligations at beginning of year | $ 2,147 | $ 2,363 | |
Service cost | 1 | 1 | 1 |
Interest cost | 90 | 86 | 94 |
Participants’ contributions | 0 | 0 | |
Acquisitions/plan amendments | 0 | 0 | |
Actuarial loss (gain) | 181 | (139) | |
Foreign exchange impact | 0 | 0 | |
Termination benefits | 7 | 9 | |
Curtailments and settlements | 0 | (4) | |
Benefit payments | (154) | (169) | |
Other | 0 | 0 | |
Benefit obligations at end of year | 2,272 | 2,147 | 2,363 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 1,568 | 1,812 | |
Actual return on plan assets | 262 | (101) | |
Company contributions | 130 | 30 | |
Participants’ contributions | 0 | 0 | |
Foreign exchange impact | 0 | 0 | |
Settlements and acquisitions | 0 | (4) | |
Benefit payments | (154) | (169) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 1,806 | 1,568 | 1,812 |
Funded Status | |||
Benefit obligations at end of year | 2,272 | 2,147 | 2,363 |
Fair value of plan assets at end of year | 1,806 | 1,568 | 1,812 |
Net amount recognized | (466) | (579) | |
Amounts Recognized in Balance Sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (28) | (26) | |
Noncurrent liabilities | (438) | (553) | |
Net amount recognized | (466) | (579) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Actuarial loss | 910 | 940 | |
Transition/prior service cost | 1 | 1 | |
Amounts recognized in accumulated other comprehensive income | 911 | 941 | |
Accumulated benefit obligation | $ 2,236 | $ 2,090 | |
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Discount rate | 3.40% | 4.38% | |
Long-term rate of return on plan assets | 6.60% | ||
Long-term rate of compensation increase | 3.50% | 3.50% | |
ESOP growth rate | 0.00% | 0.00% | |
Medical cost trend rate of increase | 0.00% | 0.00% | |
Interest Crediting Rate | 3.21% | 4.38% | |
Long-term rate of return on plan assets [Abstract] | |||
Average annual rates of return for the most recent 1-year period | 17.00% | ||
Average annual rates of return for the most recent 5-year period | 6.00% | ||
Average annual rates of return for the most recent 10-year period | 8.00% | ||
Average annual rates of return for the most recent 15-year period | 7.00% | ||
Average annual rates of return for the most recent 25-year period | 8.00% | ||
International | Pension Plans | |||
Change in Benefit Obligations | |||
Benefit obligations at beginning of year | $ 787 | $ 847 | |
Service cost | 14 | 14 | 16 |
Interest cost | 22 | 21 | 22 |
Participants’ contributions | 2 | 2 | |
Acquisitions/plan amendments | 3 | 4 | |
Actuarial loss (gain) | 82 | (11) | |
Foreign exchange impact | 8 | (40) | |
Termination benefits | 0 | 0 | |
Curtailments and settlements | (9) | (7) | |
Benefit payments | (35) | (42) | |
Other | 2 | (1) | |
Benefit obligations at end of year | 876 | 787 | 847 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 510 | 575 | |
Actual return on plan assets | 76 | (16) | |
Company contributions | 30 | 27 | |
Participants’ contributions | 2 | 3 | |
Foreign exchange impact | 12 | (29) | |
Settlements and acquisitions | (9) | (7) | |
Benefit payments | (35) | (42) | |
Other | 0 | (1) | |
Fair value of plan assets at end of year | 586 | 510 | 575 |
Funded Status | |||
Benefit obligations at end of year | 876 | 787 | 847 |
Fair value of plan assets at end of year | 586 | 510 | $ 575 |
Net amount recognized | (290) | (277) | |
Amounts Recognized in Balance Sheet | |||
Noncurrent assets | 13 | 6 | |
Current liabilities | (13) | (12) | |
Noncurrent liabilities | (290) | (271) | |
Net amount recognized | (290) | (277) | |
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Actuarial loss | 238 | 226 | |
Transition/prior service cost | 7 | 6 | |
Amounts recognized in accumulated other comprehensive income | 245 | 232 | |
Accumulated benefit obligation | $ 816 | $ 731 | |
Weighted-Average Assumptions Used to Determine Benefit Obligations | |||
Discount rate | 2.06% | 2.80% | |
Long-term rate of return on plan assets | 3.38% | 4.06% | |
Long-term rate of compensation increase | 2.83% | 2.86% | |
ESOP growth rate | 0.00% | 0.00% | |
Medical cost trend rate of increase | 0.00% | 0.00% | |
Interest Crediting Rate | 0.85% | 0.85% |
Retirement Plans and Other Re_7
Retirement Plans and Other Retiree Benefits - Benefit Obligation Exceeds Fair Value of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,862 | $ 2,882 |
Fair value of plan assets | 2,094 | 2,007 |
Accumulated benefit obligation | 875 | 2,689 |
Fair value of plan assets | $ 166 | $ 1,924 |
Retirement Plans and Other Re_8
Retirement Plans and Other Retiree Benefits - Summary of Other Retiree Benefit Plans (Details) - Other Retiree Benefit Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 958 | $ 807 |
Fair value of plan assets | $ 37 | $ 54 |
Retirement Plans and Other Re_9
Retirement Plans and Other Retiree Benefits - Summary of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Retiree Benefit Plans | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 15 | $ 16 | $ 13 |
Interest cost | 41 | 38 | 40 |
Annual ESOP allocation | 0 | 0 | 0 |
Expected return on plan assets | (3) | (2) | 0 |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 |
Amortization of actuarial loss | 11 | 14 | 13 |
Net periodic benefit cost | 64 | 66 | 66 |
Other postretirement charges | 0 | 0 | (3) |
Total pension cost | $ 64 | $ 66 | $ 63 |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate | 4.43% | 3.80% | 4.41% |
Long-term rate of return on plan assets | 6.60% | 6.60% | 6.80% |
Long-term rate of compensation increase | 0.00% | 0.00% | 0.00% |
ESOP growth rate | 10.00% | 10.00% | 10.00% |
Medical cost trend rate of increase | 6.00% | 6.00% | 6.33% |
Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
United States | Pension Plans | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 90 | 86 | 94 |
Annual ESOP allocation | 0 | 0 | 0 |
Expected return on plan assets | (103) | (115) | (111) |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 |
Amortization of actuarial loss | 51 | 47 | 48 |
Net periodic benefit cost | 39 | 19 | 32 |
Other postretirement charges | 7 | 9 | 24 |
Total pension cost | $ 46 | $ 28 | $ 56 |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate | 4.38% | 3.73% | 4.27% |
Long-term rate of return on plan assets | 6.60% | 6.60% | 6.80% |
Long-term rate of compensation increase | 3.50% | 3.50% | 3.50% |
ESOP growth rate | 0.00% | 0.00% | 0.00% |
Medical cost trend rate of increase | 0.00% | 0.00% | 0.00% |
Interest Crediting Rate | 4.26% | 3.73% | 4.27% |
Defined Benefit Plan Disclosure, Additional Information [Abstract] | |||
Voluntary contributions to postretirement plans | $ 113 | $ 67 | $ 81 |
International | Pension Plans | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 14 | 14 | 16 |
Interest cost | 22 | 21 | 22 |
Annual ESOP allocation | 0 | 0 | 0 |
Expected return on plan assets | (19) | (21) | (22) |
Amortization of transition and prior service costs (credits) | 1 | 0 | 0 |
Amortization of actuarial loss | 9 | 8 | 10 |
Net periodic benefit cost | 27 | 22 | 26 |
Other postretirement charges | 1 | 2 | 4 |
Total pension cost | $ 28 | $ 24 | $ 30 |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate | 2.80% | 2.53% | 2.59% |
Long-term rate of return on plan assets | 4.06% | 4.04% | 4.14% |
Long-term rate of compensation increase | 2.86% | 2.79% | 2.58% |
ESOP growth rate | 0.00% | 0.00% | 0.00% |
Medical cost trend rate of increase | 0.00% | 0.00% | 0.00% |
Interest Crediting Rate | 0.85% | 0.85% | 0.65% |
Global Growth and Efficiency Program | |||
Defined Benefit Plan Disclosure, Additional Information [Abstract] | |||
Charges against assets | $ 76 | $ 27 | $ 40 |
Global Growth and Efficiency Program | Employee-Related Costs | |||
Defined Benefit Plan Disclosure, Additional Information [Abstract] | |||
Charges against assets | $ 7 | $ 9 | $ 21 |
Retirement Plans and Other R_10
Retirement Plans and Other Retiree Benefits - Expected Contributions and Benefit Payments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected benefit payments from company assets | $ 55 |
Total benefit payments [Abstract] | |
2020 | 231 |
2021 | 234 |
2022 | 239 |
2023 | 240 |
2024 | 247 |
2025-2029 | 1,213 |
Other Retiree Benefit Plans | |
Total benefit payments [Abstract] | |
2020 | 49 |
2021 | 50 |
2022 | 51 |
2023 | 52 |
2024 | 53 |
2025-2029 | 272 |
United States | Pension Plans | |
Total benefit payments [Abstract] | |
2020 | 146 |
2021 | 147 |
2022 | 151 |
2023 | 149 |
2024 | 152 |
2025-2029 | 722 |
International | Pension Plans | |
Total benefit payments [Abstract] | |
2020 | 36 |
2021 | 37 |
2022 | 37 |
2023 | 39 |
2024 | 42 |
2025-2029 | $ 219 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 1,050 | $ 1,175 | $ 1,072 |
International | 2,251 | 2,289 | 2,415 |
Income before income taxes | $ 3,301 | $ 3,464 | $ 3,487 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 180 | $ 213 | $ 338 |
International | 594 | 693 | 975 |
Total Provision for income taxes | $ 774 | $ 906 | $ 1,313 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Goodwill and intangible assets | $ 34 | $ 2 | $ 135 |
Property, plant and equipment | 12 | (15) | 84 |
Pension and other retiree benefits | (13) | (7) | (192) |
Stock-based compensation | (1) | 9 | (28) |
Tax credits and tax loss carryforwards | 3 | (4) | (4) |
Deferred withholding tax | (21) | (100) | (119) |
Other, net | (33) | 62 | 16 |
Total deferred tax benefit (provision) | $ (19) | $ (53) | $ (108) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Tax at United States statutory rate | 21.00% | 21.00% | 35.00% | ||||
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent | 100.00% | ||||||
State income taxes, net of federal benefit | 0.60% | 1.00% | 0.50% | ||||
Earnings taxed at other than United States statutory rate | 4.70% | 5.60% | (3.40%) | ||||
Charge for U.S. tax reform | 0 | 0.023 | 0.079 | ||||
Excess tax benefits from stock-based compensation | (0.20%) | (0.30%) | (1.40%) | ||||
Foreign Tax Credit Carryback | 0.00% | (1.70%) | 0.00% | ||||
(Benefit) charge for previously disclosed tax matters | (0.90%) | (0.40%) | 0.00% | ||||
Foreign-derived intangible income benefit | (1.30%) | (1.10%) | 0.00% | ||||
Other, net | (0.50%) | (0.20%) | (0.90%) | ||||
Effective tax rate | 23.40% | 26.20% | 37.70% | ||||
Tax reform, provisional charge | $ 80 | $ 275 | $ 0 | $ 80 | $ 275 | ||
Tax benefit from exercise of stock options and vesting of restricted stock unit awards | 6 | 12 | $ 47 | ||||
Income tax benefit related to changes in swiss preferential tax regime and increase to cantonal tax rate | $ 29 | ||||||
Benefit from foreign tax matter | $ 15 | 15 | |||||
SWITZERLAND | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Benefit from foreign tax matter | $ 29 | $ 29 | $ 15 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax liabilities: | ||
Goodwill and intangible assets | $ (598) | $ (344) |
Property, plant and equipment | (303) | (311) |
Deferred withholding tax | (207) | (181) |
Other | (46) | (75) |
Deferred tax liabilities, total | (1,154) | (911) |
Deferred tax assets: | ||
Pension and other retiree benefits | 381 | 354 |
Tax credits and tax loss carryforwards | 93 | 89 |
Accrued liabilities | 221 | 180 |
Stock-based compensation | 88 | 95 |
Other | 100 | 164 |
Total deferred tax assets | 883 | 882 |
Valuation Allowance | (59) | (54) |
Deferred tax assets, total | 824 | 828 |
Assets: | ||
Deferred income taxes | 177 | 152 |
Liabilities: | ||
Deferred income taxes | (507) | (235) |
Net deferred income taxes | $ (330) | $ (83) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Income tax expense (benefit) allocated directly to equity | $ (13) | $ (2) | $ (37) |
Unrecognized tax benefits that would impact effective tax rate | 161 | ||
Cash outflow from unrecognized tax benefit that would impact effective tax rate | 170 | ||
Interest (income) expense recognized related to unrecognized tax benefits | 0 | 1 | 11 |
Accrued interest related to unrecognized tax benefits | $ 23 | $ 27 | $ 28 |
Minimum | |||
Income Taxes [Line Items] | |||
Statue of limitations on foreign jurisdictions for tax audits | 3 years | ||
Maximum | |||
Income Taxes [Line Items] | |||
Statue of limitations on foreign jurisdictions for tax audits | 6 years |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized tax benefits: | |||
Balance, January 1 | $ 190 | $ 214 | $ 201 |
Increases as a result of tax positions taken during the current year | 14 | 14 | 13 |
Decreases of tax positions taken during prior years | (21) | (37) | (9) |
Increases of tax positions taken during prior years | 20 | 9 | 15 |
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations | (30) | (6) | (15) |
Effect of foreign currency rate movements | 0 | (4) | 9 |
Balance, December 31 | $ 173 | $ 190 | $ 214 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income [Abstract] | |||||||||||
Basic EPS | $ 2,367 | $ 2,400 | $ 2,024 | ||||||||
Diluted EPS | $ 2,367 | $ 2,400 | $ 2,024 | ||||||||
Shares [Abstract] | |||||||||||
Basic EPS (in shares) | 859,100,000 | 870,600,000 | 881,800,000 | ||||||||
Stock options and restricted stock units (in shares) | 2,000,000 | 2,400,000 | 6,000,000 | ||||||||
Diluted EPS (in shares) | 861,100,000 | 873,000,000 | 887,800,000 | ||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||
Basic EPS (in dollars per share) | $ 0.75 | $ 0.67 | $ 0.68 | $ 0.65 | $ 0.70 | $ 0.60 | $ 0.73 | $ 0.72 | $ 2.76 | $ 2.76 | $ 2.30 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Diluted EPS (in dollars per share) | $ 0.75 | $ 0.67 | $ 0.68 | $ 0.65 | $ 0.70 | $ 0.60 | $ 0.73 | $ 0.72 | $ 2.75 | $ 2.75 | $ 2.28 |
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19,901,202 | 18,039,961 | 11,056,725 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,516 | 9,529 | 91 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2019USD ($) | Sep. 30, 2015appeal | Dec. 31, 2014USD ($)company | Dec. 31, 2019USD ($)country_and_territorycase | Dec. 31, 2018case | Jul. 31, 2017USD ($) | |
Contractual commitments (Abstract) | ||||||
Contractual commitments, amount | $ 559 | |||||
Contingencies [Abstract] | ||||||
Minimum number of countries and territories serving consumers (more than) (in countries and territories) | country_and_territory | 200 | |||||
Brazilian internal revenue authority, matter 1 | $ 152 | |||||
Loss Contingency, Number Of Cases On Appeal | case | 1 | |||||
Loss contingency, number of appeals lost (in appeals) | appeal | 1 | |||||
Brazilian internal revenue authority, matter 2 | $ 63 | |||||
Number of consumer goods companies | company | 13 | |||||
Fine imposed French competition authority | $ 57 | |||||
Fine imposed French competition authority - as a result of Sanex Acquisition | $ 25 | |||||
Fine imposed by greek competition authority | $ 11 | |||||
Increase in fine imposed by greek competition authority | $ 10.5 | |||||
Loss contingency, pending claims, number (in cases) | case | 121 | 239 | ||||
Loss contingency, new claims filed, number (in cases) | case | 110 | |||||
Loss contingency, claims dismissed or settled, number (in cases) | case | 228 | |||||
Number of cases resulting in favor jury verdict | case | 1 | |||||
Number of cases resulting in adverse jury verdict | case | 1 | |||||
Minimum | ||||||
Contingencies [Abstract] | ||||||
Range of reasonably possible losses | $ 0 | |||||
Maximum | ||||||
Contingencies [Abstract] | ||||||
Range of reasonably possible losses | $ 225 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)business_segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of product segments (in segments) | business_segment | 2 | |||||
Number of reportable segments (in segments) | business_segment | 5 | |||||
Number of operating segments | business_segment | 5 | |||||
Total Global Growth and Efficiency Program charges, pretax | $ 57 | $ 88 | $ 152 | |||
Acquisition-related costs | $ 6 | $ 14 | 20 | |||
Benefit from foreign tax matter | $ 15 | 15 | ||||
Global Growth and Efficiency Program | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Global Growth and Efficiency Program charges, pretax | $ 132 | 161 | 333 | |||
Sales Revenue, Net | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of consolidated Net sales represented by sales outside US | 70.00% | 70.00% | ||||
Percentage of consolidated Net sales coming from emerging markets | 50.00% | 50.00% | ||||
Operating Profit | Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Acquisition-related costs | $ 24 | |||||
Benefit from foreign tax matter | 30 | |||||
Operating Profit | Global Growth and Efficiency Program | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Global Growth and Efficiency Program charges, pretax | $ 125 | $ 152 | $ 313 | |||
Customer Concentration Risk | Sales Revenue, Net | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of consolidated sales represented by one customer | 11.00% |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 4,015 | $ 3,928 | $ 3,866 | $ 3,884 | $ 3,811 | $ 3,845 | $ 3,886 | $ 4,002 | $ 15,693 | $ 15,544 | $ 15,454 |
Operating profit | 3,554 | 3,694 | 3,707 | ||||||||
Capital expenditures | 335 | 436 | 553 | ||||||||
Depreciation and amortization | 519 | 511 | 475 | ||||||||
Assets | $ 15,034 | $ 12,161 | $ 15,034 | $ 12,161 | $ 12,676 | ||||||
Percentage of corporate identifiable assets consisting of derivative instruments | 2.00% | 7.00% | 2.00% | 7.00% | 5.00% | ||||||
Percentage of corporate identifiable assets consisting of investments in equity securities | 92.00% | 88.00% | 92.00% | 88.00% | 86.00% | ||||||
Total long lived assets | $ 10,192 | $ 8,259 | $ 10,192 | $ 8,259 | $ 7,908 | ||||||
Oral, Personal and Home Care | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,166 | 3,091 | 2,865 | ||||||||
Pet Nutrition | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,441 | 1,304 | 1,246 | ||||||||
Operating Segments | Oral, Personal and Home Care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 13,168 | 13,156 | 13,162 | ||||||||
Operating profit | 3,505 | 3,616 | 3,841 | ||||||||
Capital expenditures | 223 | 309 | 402 | ||||||||
Depreciation and amortization | 358 | 351 | 323 | ||||||||
Assets | 13,809 | 11,068 | 13,809 | 11,068 | 11,600 | ||||||
Operating Segments | Oral, Personal and Home Care | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,424 | 3,348 | 3,117 | ||||||||
Operating profit | 982 | 1,037 | 1,043 | ||||||||
Capital expenditures | 43 | 53 | 74 | ||||||||
Depreciation and amortization | 94 | 88 | 58 | ||||||||
Assets | 3,576 | 3,310 | 3,576 | 3,310 | 2,608 | ||||||
Operating Segments | Oral, Personal and Home Care | Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,606 | 3,605 | 3,887 | ||||||||
Operating profit | 963 | 995 | 1,171 | ||||||||
Capital expenditures | 90 | 131 | 127 | ||||||||
Depreciation and amortization | 84 | 82 | 82 | ||||||||
Assets | 2,384 | 2,225 | 2,384 | 2,225 | 2,423 | ||||||
Operating Segments | Oral, Personal and Home Care | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,450 | 2,502 | 2,394 | ||||||||
Operating profit | 624 | 634 | 605 | ||||||||
Capital expenditures | 42 | 39 | 63 | ||||||||
Depreciation and amortization | 72 | 70 | 74 | ||||||||
Assets | 5,104 | 2,883 | 5,104 | 2,883 | 3,781 | ||||||
Operating Segments | Oral, Personal and Home Care | Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,707 | 2,734 | 2,781 | ||||||||
Operating profit | 749 | 777 | 842 | ||||||||
Capital expenditures | 40 | 75 | 125 | ||||||||
Depreciation and amortization | 100 | 103 | 101 | ||||||||
Assets | 2,155 | 2,148 | 2,155 | 2,148 | 2,244 | ||||||
Operating Segments | Oral, Personal and Home Care | Africa/Eurasia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 981 | 967 | 983 | ||||||||
Operating profit | 187 | 173 | 180 | ||||||||
Capital expenditures | 8 | 11 | 13 | ||||||||
Depreciation and amortization | 8 | 8 | 8 | ||||||||
Assets | 590 | 502 | 590 | 502 | 544 | ||||||
Operating Segments | Pet Nutrition | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,525 | 2,388 | 2,292 | ||||||||
Operating profit | 703 | 680 | 677 | ||||||||
Capital expenditures | 41 | 35 | 33 | ||||||||
Depreciation and amortization | 55 | 53 | 53 | ||||||||
Assets | 1,175 | 1,033 | 1,175 | 1,033 | 1,026 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (654) | (602) | (811) | ||||||||
Capital expenditures | 71 | 92 | 118 | ||||||||
Depreciation and amortization | 106 | 107 | 99 | ||||||||
Assets | $ 50 | $ 60 | $ 50 | $ 60 | $ 50 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Other assets | $ 502 | |||
Operating lease, liability | 636 | |||
Operating lease, payments | 202 | |||
Right-of-use asset obtained in exchange for operating lease liability | $ 232 | |||
Operating lease, weighted average remaining lease term | 8 years | |||
Operating lease, weighted average discount rate | 4.10% | |||
Operating leases, rent expense | $ 213 | $ 211 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Other assets | $ 458 | |||
Operating lease, liability | $ 574 |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Other assets | $ 502 |
Other accruals | 145 |
Long-Term Lease Liabilities | 491 |
Present value of lease liabilities | $ 636 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 167 |
2021 | 127 |
2022 | 101 |
2023 | 63 |
2024 | 36 |
Thereafter | 241 |
Total lease commitments | 735 |
Less: Interest | (99) |
Present value of lease liabilities | $ 636 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 169 |
Short-term lease cost | 5 |
Variable lease cost | 30 |
Sublease income | 0 |
Total lease cost | $ 204 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 193 |
2020 | 165 |
2021 | 123 |
2022 | 102 |
2023 | 51 |
Thereafter | $ 32 |
Supplemental Income Statement_3
Supplemental Income Statement Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other (income) expense, net | |||
Total Global Growth and Efficiency Program charges, pretax | $ 57 | $ 88 | $ 152 |
Amortization of intangible assets | 62 | 59 | 35 |
Equity income | (9) | (10) | (11) |
Value-added tax matter in Brazil | (30) | 0 | 0 |
Write-off of certain investments and fixed assets | 51 | 1 | 14 |
Acquisition-related costs | 21 | 0 | 0 |
Charges for a change in go-to-market strategy in certain countries | 15 | 0 | 0 |
Other, net | 29 | 10 | (17) |
Total Other (income) expense, net | 196 | 148 | 173 |
Interest (income) expense, net | |||
Interest incurred | 193 | 195 | 156 |
Interest capitalized | (1) | (2) | (3) |
Interest income | (47) | (50) | (51) |
Total Interest (income) expense, net | 145 | 143 | 102 |
Research and development | 281 | 277 | 285 |
Advertising | $ 1,694 | $ 1,590 | $ 1,573 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 305 | $ 253 |
Work-in-process | 49 | 37 |
Finished goods | 1,056 | 960 |
Total Inventories, net | 1,410 | 1,250 |
Non-current inventory, net | (10) | 0 |
Current Inventories, net | 1,400 | 1,250 |
Inventories valued under LIFO | 303 | 294 |
Excess of current cost over LIFO cost | 62 | 63 |
Property, plant and equipment, net | ||
Land | 153 | 152 |
Buildings | 1,600 | 1,604 |
Manufacturing machinery and equipment | 5,309 | 5,157 |
Other equipment | 1,518 | 1,423 |
Property, plant and equipment, gross | 8,580 | 8,336 |
Accumulated depreciation | (4,830) | (4,455) |
Total Property, plant and equipment, net | 3,750 | 3,881 |
Other accruals | ||
Accrued advertising and coupon redemption | 525 | 486 |
Accrued payroll and employee benefits | 340 | 275 |
Accrued taxes other than income taxes | 104 | 127 |
Restructuring accrual | 85 | 148 |
Pension and other retiree benefits | 54 | 84 |
Other accruals | 145 | |
Accrued interest | 43 | 35 |
Derivatives | 16 | 9 |
Other | 605 | 532 |
Total Other accruals | 1,917 | 1,696 |
Other liabilities | ||
Pension and other retiree benefits | 1,728 | 1,600 |
Restructuring accrual | 15 | 54 |
Long-Term Lease Liabilities | 491 | |
Other | 364 | 380 |
Total Other liabilities | $ 2,598 | $ 2,034 |
Supplemental Other Comprehens_3
Supplemental Other Comprehensive Income (Loss) Information - Schedule of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total Other comprehensive income (loss), net of tax | $ (87) | $ (189) | $ 342 |
Cumulative translation adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive income (loss), Pretax | 49 | (233) | 218 |
Total Other comprehensive income (loss), net of tax | 27 | (218) | 285 |
Pension and other benefits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive income (loss), before reclassifications, Pretax | (204) | (21) | 21 |
Reclassification from AOCI, Pretax | 72 | 69 | 71 |
Other comprehensive income (loss), Pretax | (132) | 48 | 92 |
Other comprehensive income (loss), before reclassifications, Net of Tax | (154) | (16) | 9 |
Reclassification from AOCI, Net of Tax | 54 | 54 | 45 |
Total Other comprehensive income (loss), net of tax | (100) | 38 | 54 |
Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive income (loss), before reclassifications, Pretax | (9) | ||
Reclassification from AOCI, Pretax | (6) | ||
Other comprehensive income (loss), Pretax | (15) | ||
Other comprehensive income (loss), before reclassifications, Net of Tax | (7) | ||
Reclassification from AOCI, Net of Tax | (5) | ||
Total Other comprehensive income (loss), net of tax | (12) | ||
Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive income (loss), before reclassifications, Pretax | 10 | (25) | |
Reclassification from AOCI, Pretax | 3 | 3 | |
Other comprehensive income (loss), Pretax | 13 | (22) | |
Other comprehensive income (loss), before reclassifications, Net of Tax | 8 | (16) | |
Reclassification from AOCI, Net of Tax | 2 | 2 | |
Total Other comprehensive income (loss), net of tax | 10 | (14) | |
Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive income (loss), Pretax | (98) | (172) | 288 |
Total Other comprehensive income (loss), net of tax | $ (85) | $ (170) | $ 325 |
Supplemental Other Comprehens_4
Supplemental Other Comprehensive Income (Loss) Information - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Unrecognized pension and other retiree benefit costs, aftertax | $ 1,138 | $ 1,038 |
Foreign currency translation adjustments | $ 3,128 | $ 3,155 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly financial data (Unaudited) [Abstract] | ||||||||||||
Net sales | $ 4,015 | $ 3,928 | $ 3,866 | $ 3,884 | $ 3,811 | $ 3,845 | $ 3,886 | $ 4,002 | $ 15,693 | $ 15,544 | $ 15,454 | |
Gross profit | 2,414 | 2,316 | 2,308 | 2,287 | 2,253 | 2,269 | 2,301 | 2,408 | 9,325 | 9,231 | 9,280 | |
Net income including noncontrolling interests | 682 | 627 | 618 | 600 | 643 | 562 | 675 | 678 | 2,527 | 2,558 | 2,174 | |
Net income attributable to Colgate-Palmolive Company | $ 643 | $ 578 | $ 586 | $ 560 | $ 606 | $ 523 | $ 637 | $ 634 | $ 2,367 | $ 2,400 | $ 2,024 | |
Earnings (loss) per common share: | ||||||||||||
Basic EPS (in dollars per share) | $ 0.75 | $ 0.67 | $ 0.68 | $ 0.65 | $ 0.70 | $ 0.60 | $ 0.73 | $ 0.72 | $ 2.76 | $ 2.76 | $ 2.30 | |
Diluted EPS (in dollars per share) | $ 0.75 | $ 0.67 | $ 0.68 | $ 0.65 | $ 0.70 | $ 0.60 | $ 0.73 | $ 0.72 | $ 2.75 | $ 2.75 | $ 2.28 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Charges | $ 57 | $ 88 | $ 152 | |||||||||
Acquisition-related costs | $ 6 | $ 14 | 20 | |||||||||
Charge for U.S. tax reform | $ 80 | $ 275 | 0 | 80 | 275 | |||||||
Value-added tax matter in Brazil | $ (15) | (15) | ||||||||||
Gross Profit | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Acquisition-related costs | 3 | |||||||||||
Global Growth and Efficiency Program | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Charges | 132 | 161 | 333 | |||||||||
Total Global Growth and Efficiency Program charges, aftertax | 27 | 22 | $ 22 | $ 32 | 22 | 51 | $ 20 | 102 | 125 | 246 | ||
Total Global Growth and Efficiency Program charges, including noncontrolling interest, aftertax | $ 31 | 34 | 48 | 102 | 124 | |||||||
Global Growth and Efficiency Program | Gross Profit | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Charges | 1 | $ 1 | $ 3 | $ 11 | $ 12 | $ 8 | $ 5 | $ 6 | 8 | 31 | $ 75 | |
BRAZIL | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Value-added tax matter in Brazil | (20) | (20) | ||||||||||
SWITZERLAND | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Value-added tax matter in Brazil | $ (29) | $ (29) | $ (15) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts and estimated returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance of valuation allowance and reserves | $ 82 | $ 77 | $ 73 |
Charged to Costs and Expenses, additions | 6 | 15 | 8 |
Other, additions | 0 | 0 | 0 |
Deductions | 12 | 10 | 4 |
Ending balance of valuation allowance and reserves | 76 | 82 | 77 |
Valuation allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance of valuation allowance and reserves | 54 | 9 | 0 |
Charged to Costs and Expenses, additions | 12 | 45 | 9 |
Other, additions | 0 | 0 | 0 |
Deductions | 7 | 0 | 0 |
Ending balance of valuation allowance and reserves | $ 59 | $ 54 | $ 9 |
Uncategorized Items - cl-123120
Label | Element | Value |
Number Of Dividends Declared Per Quarter | cl_NumberOfDividendsDeclaredPerQuarter | 2 |
Number Of Dividends Declared Per Quarter | cl_NumberOfDividendsDeclaredPerQuarter | 2 |
Number Of Dividends Declared Per Quarter | cl_NumberOfDividendsDeclaredPerQuarter | 2 |