DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended |
Mar. 31, 2017shares | |
Document Information [Line Items] | |
Entity Registrant Name | PROCTER & GAMBLE CO |
Entity Central Index Key | 80,424 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Trading Symbol | PG |
Entity Well Known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Voluntary Files | No |
Entity Common Stock, Shares Outstanding | 2,557,614,388 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Net Sales | $ 15,605 | $ 15,755 | $ 48,979 | $ 49,197 | |
Cost of Products Sold | 7,836 | 7,915 | 24,236 | 24,527 | |
Selling, General and Administrative Expense | 4,409 | 4,522 | 13,737 | 13,731 | |
Operating Income | 3,360 | 3,318 | 11,006 | 10,939 | |
Interest Expense | 96 | 146 | 349 | 429 | |
Interest Income | 46 | 33 | 123 | 135 | |
Other Non-operating Income/(Loss), Net | 26 | 21 | (450) | 38 | |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,336 | 3,226 | 10,330 | 10,683 | |
Income Taxes on Continuing Operations | 780 | 889 | 2,338 | 2,664 | |
Net Earnings/(Loss) from Continuing Operations | 2,556 | 2,337 | 7,992 | 8,019 | |
Net Earnings/(Loss) from Discontinued Operations | 0 | 446 | 5,217 | 627 | |
Net Earnings | 2,556 | 2,783 | 13,209 | 8,646 | |
Less: Net Earnings Attributable to Noncontrolling Interest | 34 | 33 | 98 | 89 | |
Net Earnings Attributable to Procter & Gamble | $ 2,522 | $ 2,750 | $ 13,111 | $ 8,557 | |
Basic Net Earnings Per Common Share | |||||
Earnings from Continuing Operations | [1] | $ 0.96 | $ 0.83 | $ 2.95 | $ 2.86 |
Earnings/(Loss) from Discontinued Operations | [1] | 0 | 0.17 | 2 | 0.23 |
Basic Net Earnings Per Common Share | [1],[2] | 0.96 | 1 | 4.95 | 3.09 |
Diluted Net Earnings Per Common Share | |||||
Earnings from Continuing Operations | [1] | 0.93 | 0.81 | 2.87 | 2.78 |
Earnings/(Loss) from Discontinued Operations | [1] | 0 | 0.16 | 1.89 | 0.22 |
Diluted Net Earnings Per Common Share | [1],[2] | 0.93 | 0.97 | 4.76 | 3 |
Dividends Per Common Share | $ 0.6695 | $ 0.6630 | $ 2.0085 | $ 1.9890 | |
Diluted Weighted Average Common Shares Outstanding | 2,705.5 | 2,835 | 2,755.4 | 2,855.6 | |
[1] | Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble. | ||||
[2] | Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. |
CONDOLIDATED STATEMENTS OF COMP
CONDOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net Earnings | $ 2,556 | $ 2,783 | $ 13,209 | $ 8,646 |
Financial Statement Translation | 726 | 1,041 | (1,263) | (937) |
Unrealized Gains/(Losses) on Hedges | (192) | (382) | 557 | (172) |
Unrealized Gains/(Losses) on Investment Securities | 4 | 36 | (64) | 16 |
Unrealized Gains/(Losses) on Defined Benefit Retirement Plans | 29 | (3) | 722 | 231 |
Total Other Comprehensive Income (Loss), Net of Tax | 567 | 692 | (48) | (862) |
Total Comprehensive Income/(Loss) | 3,123 | 3,475 | 13,161 | 7,784 |
Less: Total Comprehensive Income Attributable to Noncontrolling Interest | 34 | 33 | 98 | 89 |
Total Comprehensive Income/(Loss) Attributable to Procter & Gamble | $ 3,089 | $ 3,442 | $ 13,063 | $ 7,695 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Current Assets | ||
Cash and Cash Equivalents | $ 5,817 | $ 7,102 |
Available-for-Sale Investment Securities | 8,510 | 6,246 |
Accounts Receivable | 4,358 | 4,373 |
Inventories | ||
Materials and Supplies | 1,324 | 1,188 |
Work in Process | 505 | 563 |
Finished Goods | 2,925 | 2,965 |
Total Inventories | 4,754 | 4,716 |
Deferred Income Taxes | 0 | 1,507 |
Prepaid Expenses and Other Current Assets | 2,446 | 2,653 |
Current Assets Held for Sale | 0 | 7,185 |
Total Current Assets | 25,885 | 33,782 |
Property, Plant and Equipment, Net | 19,219 | 19,385 |
Goodwill | 43,682 | 44,350 |
Trademarks and Other Intangible Assets, Net | 24,153 | 24,527 |
Other Noncurrent Assets | 5,152 | 5,092 |
Total Assets | 118,091 | 127,136 |
Current Liabilities | ||
Accounts Payable | 8,076 | 9,325 |
Accrued and Other Liabilities | 7,225 | 7,449 |
Current Liabilities Held for Sale | 0 | 2,343 |
Debt Due Within One Year | 13,781 | 11,653 |
Total Current Liabilities | 29,082 | 30,770 |
Long-Term Debt | 16,633 | 18,945 |
Deferred Income Taxes | 8,644 | 9,113 |
Other Noncurrent Liabilities | 9,184 | 10,325 |
Total Liabilities | 63,543 | 69,153 |
Shareholders' Equity | ||
Preferred Stock | $ 1,010 | $ 1,038 |
Common Stock, Shares, Issued | 4,009.2 | 4,009.2 |
Common Stock, Value, Issued | $ 4,009 | $ 4,009 |
Additional Paid in Capital | 63,513 | 63,714 |
Reserve For ESOP Debt Retirement | (1,248) | (1,290) |
Accumulated Other Comprehensive Income/(Loss) | (15,955) | (15,907) |
Treasury Stock | (93,225) | (82,176) |
Retained Earnings | 95,736 | 87,953 |
Noncontrolling Interest | 708 | 642 |
Total Shareholders' Equity | 54,548 | 57,983 |
Total Liabilities and Shareholders' Equity | $ 118,091 | $ 127,136 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Cash Flows [Abstract] | |||
Cash and Cash Equivalents, Beginning of Period | $ 7,102 | $ 6,836 | |
Operating Activities | |||
Net Earnings | 13,209 | 8,646 | |
Depreciation and Amortization | 2,100 | 2,239 | |
Gain (Loss) on Extinguishment of Debt | 543 | 0 | |
Share-based Compensation Expense | 197 | 216 | |
Deferred Income Taxes | (382) | (428) | |
Gain (Loss) on Disposition of Assets | 5,452 | (241) | |
Goodwill and Intangible Asset Impairment Charges | 0 | 450 | |
Changes In: | |||
Accounts Receivable | (159) | (129) | |
Inventories | (145) | (94) | |
Accounts Payable, Accrued and Other Liabilities | (1,113) | (199) | |
Other Operating Assets and Liabilities | 219 | 167 | |
Other Noncash Expense | 48 | 187 | |
Total Operating Activities | 9,065 | 11,296 | |
Investing Activities | |||
Capital Expenditures | (2,230) | (2,023) | |
Proceeds from Asset Sales | 411 | 114 | |
Acquisitions, Net of Cash Acquired | (16) | (186) | |
Purchases of Short-term Investments | (3,369) | (2,372) | |
Proceeds from Sales of Short-term Investments | 834 | 1,222 | |
Increase (Decrease) in Restricted Cash | (874) | (995) | |
Cash Transferred to Discontinued Beauty Business | (475) | 0 | |
Release of Restricted Cash | 1,870 | 0 | |
Cash Divested from Divested Businesses, Investing Activities | 0 | (143) | |
Change in Other Investments | 26 | 0 | |
Total Investing Activites | (3,823) | (4,383) | |
Financing Activities | |||
Dividends to Shareholders | (5,410) | (5,589) | |
Change in Short-term Debt | 3,556 | 1,535 | |
Additions to Long-term Debt | 2,641 | 3,916 | |
Reductions of Long-term Debt | (5,020) | [1] | (2,210) |
Treasury Stock Purchases | (4,504) | (3,504) | |
Cash Divested from Divested Businesses, Financing Activities | 0 | (1,730) | |
Impact of Stock Options and Other | 2,398 | 2,024 | |
Total Financing Activities | (6,339) | (5,558) | |
Effect of Exchange Rate on Cash and Cash Equivalents | (188) | (296) | |
Change in Cash and Cash Equivalents | (1,285) | 1,059 | |
Cash and Cash Equivalents, End of Period | $ 5,817 | $ 7,895 | |
[1] | Includes $543 of costs related to early extinguishment of debt. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation These statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . In the opinion of management, the accompanying unaudited Consolidated Financial Statements of The Procter & Gamble Company and subsidiaries (the "Company," "Procter & Gamble," "P&G," "we" or "our") contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. |
NEW ACCOUNTING PRONOUNCEMENTS A
NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | New Accounting Pronouncements and Policies In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We plan to adopt the standard on July 1, 2018. While we are currently assessing the impact of the new standard, our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. These are largely un-impacted by the new standard. Therefore we do not expect this new guidance to have a material impact on our Consolidated Financial Statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". This guidance simplifies the presentation of deferred taxes on the balance sheet by requiring that all deferred tax assets and liabilities be classified as non-current. The new standard is effective for us beginning July 1, 2017, with early adoption permitted. We elected to early adopt the new guidance on a prospective basis in the first quarter of fiscal year 2017. The impact was not significant. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We plan to adopt the standard on July 1, 2019. We are currently assessing the impact that the new standard will have on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases to show equal and offsetting lease assets and lease liabilities. In March 2016, the FASB issued ASU 2016-09, "Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" which changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits (which represent the excess of actual tax benefits received at vest or settlement over the benefits recognized at issuance of share-based payments) and tax deficiencies (which represent the amount by which actual tax benefits received at vest or settlement is lower than the benefits recognized at issuance of share-based payments) to be recorded in the income statement when the awards vest or are settled. The amended guidance also requires excess tax benefits to be classified as an operating activity in the statement of cash flows, rather than a financing activity. The standard further provides an accounting policy election to account for forfeitures as they occur rather than utilizing the estimated amount of forfeitures at the time of issuance. The new standard is effective for us beginning July 1, 2017, with early adoption permitted. We elected to early adopt the new guidance on a prospective basis in the first quarter of fiscal year 2017. The primary impact of adoption was the recognition of excess tax benefits in our Income taxes on continuing operations rather than in Additional paid-in capital for fiscal year 2017 . As a result, we recognized excess tax benefits of $189 in Income taxes on continuing operations during the nine months ended March 31, 2017 . We also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of fiscal 2017. We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. None of the other provisions in this amended guidance had a significant impact on our Consolidated Financial Statements. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our Consolidated Financial Statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information As discussed in Note 11, the Beauty Brands and Batteries businesses are presented as discontinued operations and are excluded from segment results for all periods presented. Effective July 1, 2016, the Company began accounting for sales to and related earnings from its Venezuela subsidiaries in Corporate for management reporting purposes. As a result, we are also reflecting such sales and earnings in Corporate for segment reporting purposes. This change was made on a prospective basis for both management and external segment reporting purposes and did not have a significant impact on any of the segments. Following is a summary of reportable segment results: Three Months Ended March 31 Nine Months Ended March 31 Net Sales Earnings/(Loss) from Continuing Operations Before Income Taxes Net Earnings/(Loss) from Continuing Operations Net Sales Earnings/(Loss) from Continuing Operations Before Income Taxes Net Earnings/(Loss) from Continuing Operations Beauty 2017 $ 2,675 $ 531 $ 396 $ 8,613 $ 2,028 $ 1,528 2016 2,719 604 458 8,723 2,200 1,667 Grooming 2017 1,525 437 333 4,972 1,580 1,217 2016 1,623 469 356 5,103 1,547 1,187 Health Care 2017 1,841 470 310 5,774 1,574 1,052 2016 1,773 414 278 5,547 1,426 990 Fabric & Home Care 2017 4,957 972 599 15,529 3,226 2,052 2016 5,028 1,014 652 15,626 3,311 2,172 Baby, Feminine & Family Care 2017 4,471 890 555 13,711 2,973 1,932 2016 4,506 976 631 13,874 3,124 2,063 Corporate 2017 136 36 363 380 (1,051 ) 211 2016 106 (251 ) (38 ) 324 (925 ) (60 ) Total Company 2017 $ 15,605 $ 3,336 $ 2,556 $ 48,979 $ 10,330 $ 7,992 2016 15,755 3,226 2,337 49,197 10,683 8,019 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill is allocated by reportable segment as follows: Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Total Company Goodwill at June 30, 2016 $ 12,645 $ 19,477 $ 5,840 $ 1,856 $ 4,532 $ 44,350 Acquisitions and divestitures — — (10 ) (3 ) — (13 ) Translation and other (227 ) (259 ) (74 ) (24 ) (71 ) (655 ) Goodwill at March 31, 2017 $ 12,418 $ 19,218 $ 5,756 $ 1,829 $ 4,461 $ 43,682 On October 1, 2016, the Company completed the divestiture of four product categories, comprised of 41 of its beauty brands ("Beauty Brands"), to Coty, Inc. The transaction included the global salon professional hair care and color, retail hair color and cosmetics businesses and a majority of the fine fragrances business, along with select hair styling brands (see Note 11). The Beauty Brands have historically been part of the Company's Beauty reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Beauty Brands are presented as discontinued operations. As a result, the goodwill attributable to the Beauty Brands as of June 30, 2016 is excluded from the preceding table and is reported as Current assets held for sale in the Consolidated Balance Sheets. Goodwill decreased from June 30, 2016 primarily due to currency translation. The test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit's goodwill. The second step of the impairment analysis requires a valuation of a reporting unit's tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the resulting implied fair value of the reporting unit's goodwill is less than its carrying value, that difference represents an impairment. The business unit valuations used to test goodwill and intangible assets for impairment are dependent on a number of significant estimates and assumptions including macroeconomic conditions, overall category growth rates, competitive activities, cost containment, margin expansion and Company business plans. We believe these estimates and assumptions are reasonable. However, future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill and indefinite-lived intangible assets, including discount and tax rates or future cash flow projections, could result in significantly different estimates of the fair values. Most of our goodwill reporting units are comprised of a combination of legacy and acquired businesses and as a result have fair value cushions that, at a minimum, exceed two times their underlying carrying values. Certain of our continuing goodwill reporting units, in particular Shave Care and Appliances, are comprised entirely of acquired businesses and as a result have fair value cushions that are not as high. While both of these wholly-acquired reporting units have fair value cushions that currently exceed the underlying carrying values, the Shave Care cushion, as well as the related indefinite-lived intangible asset cushion, have been reduced to below 10% due in large part to an increased competitive market environment in the U.S. and significant currency devaluations in a number of countries relative to the U.S. dollar that began in recent years. As a result, this unit is more susceptible to impairment risk from adverse changes in business operating plans and macroeconomic environment conditions, including any further significant devaluation of major currencies relative to the U.S. dollar. Any such adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges of the business unit's goodwill and indefinite-lived intangibles (carrying values of Shave Care goodwill and the Gillette indefinite-lived intangible asset as of March 31, 2017 are $18.9 billion and $15.7 billion , respectively). Identifiable intangible assets at March 31, 2017 are comprised of: Gross Carrying Amount Accumulated Amortization Intangible assets with determinable lives $ 7,310 $ (4,757 ) Intangible assets with indefinite lives 21,600 — Total identifiable intangible assets $ 28,910 $ (4,757 ) Intangible assets with determinable lives consist of brands, patents, technology and customer relationships. The intangible assets with indefinite lives consist of brands. The amortization expense of intangible assets for the three months ended March 31, 2017 and 2016 was $79 and $98 , respectively. For the nine months ended March 31, 2017 and 2016 , the amortization expense of intangible assets was $248 and $301 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) are divided by the weighted average number of common shares outstanding during the period to calculate Basic net earnings per common share. Diluted net earnings per common share are calculated to give effect to stock options and other stock-based awards and assume conversion of preferred stock. Net earnings attributable to Procter & Gamble and common shares used to calculate Basic and Diluted net earnings per share were as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 CONSOLIDATED AMOUNTS Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Net earnings $ 2,556 $ — $ 2,556 $ 2,337 $ 446 $ 2,783 Net earnings attributable to noncontrolling interests (34 ) — (34 ) (32 ) (1 ) (33 ) Net earnings attributable to P&G (Diluted) 2,522 — 2,522 2,305 445 2,750 Preferred dividends, net of tax benefit (60 ) — (60 ) (63 ) — (63 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 2,462 $ — $ 2,462 $ 2,242 $ 445 $ 2,687 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,563.3 2,563.3 2,563.3 2,688.7 2,688.7 2,688.7 Effect of dilutive securities Conversion of preferred shares (1) 98.7 98.7 98.7 103.4 103.4 103.4 Exercise of stock options and other unvested equity awards (2) 43.5 43.5 43.5 42.9 42.9 42.9 Diluted weighted average common shares outstanding 2,705.5 2,705.5 2,705.5 2,835.0 2,835.0 2,835.0 PER SHARE AMOUNTS (3) Basic net earnings per common share $ 0.96 $ — $ 0.96 $ 0.83 $ 0.17 $ 1.00 Diluted net earnings per common share $ 0.93 $ — $ 0.93 $ 0.81 $ 0.16 $ 0.97 Nine Months Ended March 31, 2017 Nine Months Ended March 31, 2016 CONSOLIDATED AMOUNTS Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Net earnings $ 7,992 $ 5,217 $ 13,209 $ 8,019 $ 627 $ 8,646 Net earnings attributable to noncontrolling interests (98 ) — (98 ) (88 ) (1 ) (89 ) Net earnings attributable to P&G (Diluted) 7,894 5,217 13,111 7,931 626 8,557 Preferred dividends, net of tax benefit (184 ) — (184 ) (192 ) — (192 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 7,710 $ 5,217 $ 12,927 $ 7,739 $ 626 $ 8,365 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,611.5 2,611.5 2,611.5 2,709.2 2,709.2 2,709.2 Effect of dilutive securities Conversion of preferred shares (1) 99.9 99.9 99.9 104.6 104.6 104.6 Exercise of stock options and other unvested equity awards (2) 44.0 44.0 44.0 41.8 41.8 41.8 Diluted weighted average common shares outstanding 2,755.4 2,755.4 2,755.4 2,855.6 2,855.6 2,855.6 PER SHARE AMOUNTS (3) Basic net earnings per common share $ 2.95 $ 2.00 $ 4.95 $ 2.86 $ 0.23 $ 3.09 Diluted net earnings per common share $ 2.87 $ 1.89 $ 4.76 $ 2.78 $ 0.22 $ 3.00 (1) Despite being included currently in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. (2) Weighted average outstanding stock options of approximately 7 million and 33 million for the three months ended March 31, 2017 and 2016 , respectively, and approximately 16 million and 51 million for the nine months ended March 31, 2017 and 2016 , respectively, were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). (3) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. |
SHARE-BASED COMPENSATION AND PO
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Share-Based Compensation and Postretirement Benefits The following table provides a summary of our share-based compensation expense and postretirement benefit costs: Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Share-based compensation expense $ 93 $ 79 $ 211 $ 220 Net periodic benefit cost for pension benefits (1) 77 85 430 256 Net periodic benefit cost/(credit) for other retiree benefits (1) (23 ) (26 ) 16 (75 ) (1) The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . The disclosures above for both share-based compensation and postretirement benefits include amounts related to discontinued operations which were not material in any period presented. |
RISK MANAGEMENT ACTIVITIES AND
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2017 | |
Risk Management Activities and Fair Value Measurements [Abstract] | |
Risk Management And Fair Value [Text Block] | Risk Management Activities and Fair Value Measurements As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. There have been no significant changes in our risk management policies or activities during the nine months ended March 31, 2017 . The Company has not changed its valuation techniques used in measuring the fair value of any financial assets and liabilities during the period. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were remeasured at fair value on a non-recurring basis for the nine months ended March 31, 2017 . The following table sets forth the Company’s financial assets as of March 31, 2017 and June 30, 2016 that are measured at fair value on a recurring basis during the period: Fair Value Asset March 31, 2017 June 30, 2016 Investments U.S. government securities $ 5,795 $ 4,839 Corporate bond securities 2,715 1,407 Other investments 97 28 Total $ 8,607 $ 6,274 Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of U.S. government securities with maturities less than one year was $2,293 as of March 31, 2017 and $292 as of June 30, 2016 . The amortized cost of U.S. government securities with maturities between one and five years was $3,525 as of March 31, 2017 and $4,513 as of June 30, 2016 . The amortized cost of Corporate bond securities with maturities of less than a year was $574 as of March 31, 2017 and $382 as of June 30, 2016 . The amortized cost of Corporate bond securities with maturities between one and five years was $2,148 as of March 31, 2017 and $1,018 as of June 30, 2016 . The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. There are no material investment balances classified as either Level 1 or Level 3 within the fair value hierarchy. Fair values are generally estimated based upon quoted market prices for similar instruments. The fair value of long-term debt was $19,905 and $24,362 as of March 31, 2017 and June 30, 2016 , respectively. This includes the current portion ( $1,670 and $2,761 as of March 31, 2017 and June 30, 2016 , respectively) of debt instruments. Certain long-term debt is recorded at fair value. Certain long-term debt is not recorded at fair value on a recurring basis but is measured at fair value for disclosure purposes. Long-term debt with fair value of $1,705 and $2,331 as of March 31, 2017 and June 30, 2016 , respectively, is classified as Level 2 within the fair value hierarchy. All remaining long-term debt is classified as Level 1 within the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. The following table sets forth the notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of March 31, 2017 and June 30, 2016 : Notional Amount Fair Value Asset/(Liability) March 31, 2017 June 30, 2016 March 31, 2017 June 30, 2016 Derivatives in Cash Flow Hedging Relationships Foreign currency contracts $ 798 $ 798 $ 90 $ 31 Derivatives in Fair Value Hedging Relationships Interest rate contracts $ 4,418 $ 4,993 $ 169 $ 371 Derivatives in Net Investment Hedging Relationships Net investment hedges $ 2,902 $ 3,013 $ 90 $ (87 ) Derivatives Not Designated as Hedging Instruments Foreign currency contracts $ 4,845 $ 6,482 $ 51 $ (10 ) All derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The total notional amount of contracts outstanding at the end of the period is indicative of the Company's derivative activity during the period. The change in the notional balance of foreign currency contracts not designated as hedging instruments during the period reflects changes in the level of intercompany financing activity. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) March 31, 2017 June 30, 2016 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ (2 ) $ (2 ) Foreign currency contracts (4 ) — Total $ (6 ) $ (2 ) Derivatives in Net Investment Hedging Relationships Net investment hedges $ 54 $ (53 ) During the next 12 months, the amount of the March 31, 2017 Accumulated other comprehensive income (AOCI) balance that will be reclassified to earnings is expected to be immaterial. The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the three and nine months ended March 31, 2017 and 2016 are as follows: Amount of Gain/(Loss) Reclassified from AOCI into Earnings Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships (1) Interest rate contracts $ — $ — $ — $ 3 Foreign currency contracts (25 ) (43 ) 74 (44 ) Total $ (25 ) $ (43 ) $ 74 $ (41 ) Amount of Gain/(Loss) Recognized in Earnings Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Derivatives in Fair Value Hedging Relationships (2) Interest rate contracts $ (22 ) $ 132 $ (202 ) $ 171 Debt 22 (132 ) 202 (171 ) Total $ — $ — $ — $ — Derivatives in Net Investment Hedging Relationships (2) Net investment hedges $ 6 $ — $ 6 $ — Derivatives Not Designated as Hedging Instruments (3) Foreign currency contracts $ 155 $ 191 $ (29 ) $ (29 ) (1) The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense. (2) The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense. (3) The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A. This gain or loss substantially offsets the foreign currency mark-to-market impact of the related exposure. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income/(Loss) The table below presents the changes in Accumulated other comprehensive income/(loss) by component and the reclassifications out of Accumulated other comprehensive income/(loss): Changes in Accumulated Other Comprehensive Income/(Loss) by Component Hedges Investment Securities Pension and Other Retiree Benefits Financial Statement Translation Total Balance at June 30, 2016 $ (2,641 ) $ 34 $ (5,798 ) $ (7,502 ) $ (15,907 ) OCI before reclassifications (1) 631 (56 ) 338 (1,146 ) (233 ) Amounts reclassified from AOCI (2) (3) (4) (74 ) (8 ) 384 (117 ) 185 Net current period OCI 557 (64 ) 722 (1,263 ) (48 ) Balance at March 31, 2017 $ (2,084 ) $ (30 ) $ (5,076 ) $ (8,765 ) $ (15,955 ) (1) Net of tax expense/(benefit) of $337 , $(6) and $91 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (2) Net of tax expense/(benefit) of $0 , $0 and $151 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (3) See Note 7 for classification of gains and losses from hedges in the Consolidated Statements of Earnings. Gains and losses on investment securities are reclassified from AOCI into Other non-operating income/(loss), net. Gains and losses on pension and other retiree benefits are reclassified from AOCI into Cost of products sold and SG&A and are included in the computation of net periodic pension costs. (4) Amounts reclassified from AOCI for financial statement translation relate to accumulated translation associated with foreign entities sold as part of the sale of the Beauty Brands business. These amounts were reclassified into Net earnings from discontinued operations in the Consolidated Statement of Earnings. |
RESTRUCTURING PROGRAM
RESTRUCTURING PROGRAM | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Program The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In fiscal 2012, the Company initiated an incremental restructuring program as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing and overheads. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy. The Company expects to incur approximately $5.5 billion in before-tax restructuring costs over a six year period (from fiscal 2012 through fiscal 2017 ), including costs incurred as part of the ongoing and incremental restructuring program. The program includes a non-manufacturing overhead enrollment reduction target of approximately 25% - 30% by the end of fiscal 2017 . Through March 31, 2017 , the Company reduced non-manufacturing enrollment by approximately 26% . The reductions are enabled by the elimination of duplicate work, simplification through the use of technology and optimization of various functional and business organizations and the Company's global footprint. In addition, the plan includes integration of newly acquired companies and the optimization of the supply chain and other manufacturing processes. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Through fiscal 2016 , the Company incurred charges of approximately $4.9 billion . Approximately $2.3 billion of these charges were related to separations, $1.4 billion were asset-related costs and $1.2 billion were related to other restructuring-type costs. For the three and nine month periods ended March 31, 2017 , the Company incurred total restructuring charges of approximately $157 and $505 , respectively. For the three and nine month periods ended March 31, 2017 , $25 and $72 of these charges were recorded in SG&A, respectively. For the three and nine month periods ended March 31, 2017 , $132 and $409 of these charges were recorded in Cost of products sold, respectively. The remainder of the charges were included in discontinued operations. The following table presents restructuring activity for the nine months ended March 31, 2017 : Nine Months Ended March 31, 2017 Accrual Balance June 30, 2016 Charges Previously Reported (Six Months Ended December 31, 2016) Charges for the Three Months Ended March 31, 2017 Cash Spent (1) Charges Against Assets Accrual Balance March 31, 2017 Separations $ 243 $ 96 $ 43 $ (182 ) $ — $ 200 Asset-related costs — 206 80 — (286 ) — Other costs 72 46 34 (104 ) — 48 Total $ 315 $ 348 $ 157 $ (286 ) $ (286 ) $ 248 (1) Includes liabilities transferred to Coty related to our Beauty Brands divestiture. Separation Costs Employee separation charges for the three and nine month periods ended March 31, 2017 relate to severance packages for approximately 480 and 1,520 employees, respectively. Separations related to non-manufacturing employees were approximately 70 and 260 employees for the three and nine month periods ended March 31, 2017 , respectively. The packages are predominantly voluntary and the amounts are calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Since its inception, the restructuring program has incurred separation charges related to approximately 18,590 employees, of which approximately 9,800 are non-manufacturing overhead personnel. Asset-Related Costs Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other Costs Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include employee relocation related to separations and office consolidations, termination of contracts related to supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes. Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments: Three Months Ended March 31, 2017 Nine Months Ended March 31, 2017 Beauty $ 23 $ 63 Grooming 14 31 Health Care 1 9 Fabric & Home Care 26 103 Baby, Feminine & Family Care 41 141 Corporate (1) 52 158 Total Company $ 157 $ 505 (1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, and costs related to discontinued operations from our Beauty Brands businesses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Litigation The Company is subject to various legal proceedings and claims arising out of our business which cover a wide range of matters such as antitrust, trade and other governmental regulations, product liability, patent and trademark, advertising, contracts, environmental, labor and employment and tax. With respect to these and other litigation and claims, while considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows. We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will materially affect our financial position, results of operations or cash flows. Income Tax Uncertainties The Company is present in approximately 140 taxable jurisdictions and, at any point in time, has 50 – 60 jurisdictional audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitations. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2008 and forward. We are generally not able to reliably estimate the ultimate settlement amounts until the close of the audit. Based on information currently available, we anticipate that over the next 12 month period, audit activity could be completed related to uncertain tax positions in multiple jurisdictions for which we have accrued liabilities of approximately $170 , including interest and penalties. Additional information on the Commitments and Contingencies of the Company can be found in our Annual Report on Form 10-K for the year ended June 30, 2016 . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On October 1, 2016, the Company completed the divestiture of four product categories to Coty, Inc. (“Coty”). The divestiture included 41 of the Company's beauty brands (“Beauty Brands”), including the global salon professional hair care and color, retail hair color, cosmetics and a majority of the fine fragrance businesses, along with select hair styling brands. The form of the divestiture transaction was a Reverse Morris Trust split-off, in which P&G shareholders were given the election to exchange their P&G shares for shares of a new corporation that held the Beauty Brands (Galleria Co.), and then immediately exchange those shares for Coty shares. The value P&G received in the transaction was $11.4 billion . The value is comprised of 105 million shares of common stock of the Company, which were tendered by shareholders of the Company and exchanged for the Galleria Co. shares, valued at approximately $9.4 billion , and the assumption of $1.9 billion of debt by Galleria Co.. The shares tendered in the transaction were reflected as an addition to treasury stock and the cash received related to the debt assumed by Coty was reflected as an investing activity in the Consolidated Statement of Cash Flows. The Company recorded an after-tax gain on the final transaction of $5.3 billion , net of transaction and related costs. Two of the fine fragrance brands, Dolce & Gabbana and Christina Aguilera, were excluded from the divestiture. These brands were subsequently divested at amounts that approximated their adjusted carrying values. In February 2016, the Company completed the divestiture of its Batteries business to Berkshire Hathaway (BH) via a split transaction, in which the Company exchanged Duracell, which the Company had infused with approximately $1.9 billion of additional cash, to repurchase all 52.5 million shares of P&G stock owned by BH. During fiscal 2016, the Company recorded a non-cash, before-tax goodwill and indefinite-lived asset impairment charge of $402 ( $350 after-tax), to reduce the value to the total estimated proceeds based on the value of BH’s shares in P&G stock at the time of the impairment charges. The Company recorded an after-tax gain on the final transaction of $422 to reflect the final value of the BH’s shares in P&G stock. The total value of the transaction was $4.2 billion representing the value of the Duracell business and the cash infusion. The cash infusion was reflected as a purchase of treasury stock. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Beauty Brands and Batteries business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Beauty Brands' balance sheet positions are presented as assets and liabilities held for sale in the Consolidated Balance Sheets as of June 30, 2016 . The Beauty Brands were historically part of the Company's Beauty reportable segment. The Batteries business was historically part of the Company's Fabric & Home Care reportable segment. On July 1, 2015, the Company adopted ASU 2014-08, which included new reporting and disclosure requirements for discontinued operations. The new requirements are effective for discontinued operations occurring on or after the adoption date, which includes the Beauty Brands divestiture. All other discontinued operations prior to July 1, 2015 are reported based on the previous disclosure requirements for discontinued operations, including the Batteries divestiture. The following table summarizes Net earnings/(loss) from discontinued operations and reconciles to the Consolidated Statements of Earnings: Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Beauty Brands $ — $ (2 ) $ 5,217 $ 386 Batteries — 448 — 241 Net earnings/(loss) from discontinued operations $ — $ 446 $ 5,217 $ 627 The following is selected financial information underlying the Net earnings/(loss) from discontinued operations for the Beauty Brands: Beauty Brands Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Net sales $ — $ 1,092 $ 1,159 $ 3,715 Cost of products sold — 365 450 1,193 Selling, general and administrative expense — 672 783 1,983 Interest expense — — 14 — Intangible asset impairment charges — 48 — 48 Other non-operating income/(loss), net — (6 ) 16 (8 ) Earnings/(loss) from discontinued operations before income taxes $ — $ 1 $ (72 ) $ 483 Income taxes on discontinued operations — 3 46 97 Gain on sale of business before income taxes $ — $ — $ 5,197 $ — Income tax expense/(benefit) on sale of business — — (138 ) (1) — Net earnings/(loss) from discontinued operations $ — $ (2 ) $ 5,217 $ 386 (1) The income tax benefit of the Beauty Brands divestiture represents the reversal of underlying deferred tax balances partially offset by current tax expense related to the transaction. The Beauty Brands incurred transition costs of $167 , after-tax, for the three months ended September 30, 2016, included in the above table. Residual transaction costs for the three months ended December 31, 2016 are included in the gain on the sale of business in the table above. The following is selected financial information related to cash flows from discontinued operations for the Beauty Brands: Beauty Brands Nine Months Ended March 31 2017 2016 NON-CASH OPERATING ITEMS Depreciation and amortization $ 24 $ 78 Deferred income tax benefit (649 ) — Before tax gain on sale of business 5,210 — Goodwill and intangible asset impairment charges $ — $ 48 Net increase in accrued taxes 307 — CASH FLOWS FROM OPERATING ACTIVITIES Cash taxes paid $ 204 $ — CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures $ 38 $ 65 The major components of assets and liabilities of the Beauty Brands held for sale are provided below. Beauty Brands June 30, 2016 Cash $ 40 Restricted cash 996 Accounts receivable 384 Inventories 494 Prepaid expenses and other current assets 126 Property, plant and equipment, net 629 Goodwill and intangible assets, net 4,411 Other noncurrent assets 105 Current assets held for sale $ 7,185 Accounts payable $ 148 Accrued and other liabilities 384 Noncurrent deferred tax liabilities 370 Long-term debt 996 Other noncurrent liabilities 445 Current liabilities held for sale $ 2,343 Prior to the transaction, Beauty Brands drew $1.9 billion of debt ( $1.0 billion as of June 30, 2016 ), which as noted above, was used to fund a portion of the transaction. The proceeds were held by the Beauty Brands as of June 30, 2016 . In connection with the closing, this cash reverted to the Company and was used to retire P&G debt as part of a broader $2.5 billion debt retirement program that was completed in November 2016 . The following is selected financial information included in Net earnings/(loss) from discontinued operations for the Batteries business: Batteries Three Months Ended March 31, 2016 Nine Months Ended March 31, 2016 Net sales $ 320 $ 1,517 Earnings before impairment charges and income taxes 35 266 Impairment charges — (402 ) Income tax (expense)/benefit (9 ) (45 ) Gain on sale before income taxes (288 ) (288 ) Income tax expense on sale (1) 710 710 Net earnings/(loss) from discontinued operations $ 448 $ 241 (1) The income tax benefit of the Batteries divestiture primarily represents the reversal of underlying deferred tax balances. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Following is a summary of reportable segment results: Three Months Ended March 31 Nine Months Ended March 31 Net Sales Earnings/(Loss) from Continuing Operations Before Income Taxes Net Earnings/(Loss) from Continuing Operations Net Sales Earnings/(Loss) from Continuing Operations Before Income Taxes Net Earnings/(Loss) from Continuing Operations Beauty 2017 $ 2,675 $ 531 $ 396 $ 8,613 $ 2,028 $ 1,528 2016 2,719 604 458 8,723 2,200 1,667 Grooming 2017 1,525 437 333 4,972 1,580 1,217 2016 1,623 469 356 5,103 1,547 1,187 Health Care 2017 1,841 470 310 5,774 1,574 1,052 2016 1,773 414 278 5,547 1,426 990 Fabric & Home Care 2017 4,957 972 599 15,529 3,226 2,052 2016 5,028 1,014 652 15,626 3,311 2,172 Baby, Feminine & Family Care 2017 4,471 890 555 13,711 2,973 1,932 2016 4,506 976 631 13,874 3,124 2,063 Corporate 2017 136 36 363 380 (1,051 ) 211 2016 106 (251 ) (38 ) 324 (925 ) (60 ) Total Company 2017 $ 15,605 $ 3,336 $ 2,556 $ 48,979 $ 10,330 $ 7,992 2016 15,755 3,226 2,337 49,197 10,683 8,019 |
GOODWILL AND OTHER INTANGIBLE18
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill is allocated by reportable segment as follows: Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Total Company Goodwill at June 30, 2016 $ 12,645 $ 19,477 $ 5,840 $ 1,856 $ 4,532 $ 44,350 Acquisitions and divestitures — — (10 ) (3 ) — (13 ) Translation and other (227 ) (259 ) (74 ) (24 ) (71 ) (655 ) Goodwill at March 31, 2017 $ 12,418 $ 19,218 $ 5,756 $ 1,829 $ 4,461 $ 43,682 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Identifiable intangible assets at March 31, 2017 are comprised of: Gross Carrying Amount Accumulated Amortization Intangible assets with determinable lives $ 7,310 $ (4,757 ) Intangible assets with indefinite lives 21,600 — Total identifiable intangible assets $ 28,910 $ (4,757 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net earnings attributable to Procter & Gamble and common shares used to calculate Basic and Diluted net earnings per share were as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 CONSOLIDATED AMOUNTS Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Net earnings $ 2,556 $ — $ 2,556 $ 2,337 $ 446 $ 2,783 Net earnings attributable to noncontrolling interests (34 ) — (34 ) (32 ) (1 ) (33 ) Net earnings attributable to P&G (Diluted) 2,522 — 2,522 2,305 445 2,750 Preferred dividends, net of tax benefit (60 ) — (60 ) (63 ) — (63 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 2,462 $ — $ 2,462 $ 2,242 $ 445 $ 2,687 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,563.3 2,563.3 2,563.3 2,688.7 2,688.7 2,688.7 Effect of dilutive securities Conversion of preferred shares (1) 98.7 98.7 98.7 103.4 103.4 103.4 Exercise of stock options and other unvested equity awards (2) 43.5 43.5 43.5 42.9 42.9 42.9 Diluted weighted average common shares outstanding 2,705.5 2,705.5 2,705.5 2,835.0 2,835.0 2,835.0 PER SHARE AMOUNTS (3) Basic net earnings per common share $ 0.96 $ — $ 0.96 $ 0.83 $ 0.17 $ 1.00 Diluted net earnings per common share $ 0.93 $ — $ 0.93 $ 0.81 $ 0.16 $ 0.97 Nine Months Ended March 31, 2017 Nine Months Ended March 31, 2016 CONSOLIDATED AMOUNTS Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total Net earnings $ 7,992 $ 5,217 $ 13,209 $ 8,019 $ 627 $ 8,646 Net earnings attributable to noncontrolling interests (98 ) — (98 ) (88 ) (1 ) (89 ) Net earnings attributable to P&G (Diluted) 7,894 5,217 13,111 7,931 626 8,557 Preferred dividends, net of tax benefit (184 ) — (184 ) (192 ) — (192 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 7,710 $ 5,217 $ 12,927 $ 7,739 $ 626 $ 8,365 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,611.5 2,611.5 2,611.5 2,709.2 2,709.2 2,709.2 Effect of dilutive securities Conversion of preferred shares (1) 99.9 99.9 99.9 104.6 104.6 104.6 Exercise of stock options and other unvested equity awards (2) 44.0 44.0 44.0 41.8 41.8 41.8 Diluted weighted average common shares outstanding 2,755.4 2,755.4 2,755.4 2,855.6 2,855.6 2,855.6 PER SHARE AMOUNTS (3) Basic net earnings per common share $ 2.95 $ 2.00 $ 4.95 $ 2.86 $ 0.23 $ 3.09 Diluted net earnings per common share $ 2.87 $ 1.89 $ 4.76 $ 2.78 $ 0.22 $ 3.00 (1) Despite being included currently in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. (2) Weighted average outstanding stock options of approximately 7 million and 33 million for the three months ended March 31, 2017 and 2016 , respectively, and approximately 16 million and 51 million for the nine months ended March 31, 2017 and 2016 , respectively, were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). (3) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. |
SHARE-BASED COMPENSATION AND 20
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation and Employee Benefit Plans [Table Text Block] | The following table provides a summary of our share-based compensation expense and postretirement benefit costs: Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Share-based compensation expense $ 93 $ 79 $ 211 $ 220 Net periodic benefit cost for pension benefits (1) 77 85 430 256 Net periodic benefit cost/(credit) for other retiree benefits (1) (23 ) (26 ) 16 (75 ) (1) The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . |
RISK MANAGEMENT ACTIVITIES AN21
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Risk Management Activities and Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the Company’s financial assets as of March 31, 2017 and June 30, 2016 that are measured at fair value on a recurring basis during the period: Fair Value Asset March 31, 2017 June 30, 2016 Investments U.S. government securities $ 5,795 $ 4,839 Corporate bond securities 2,715 1,407 Other investments 97 28 Total $ 8,607 $ 6,274 |
Schedule of Derivative Instruments [Table Text Block] | The following table sets forth the notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of March 31, 2017 and June 30, 2016 : Notional Amount Fair Value Asset/(Liability) March 31, 2017 June 30, 2016 March 31, 2017 June 30, 2016 Derivatives in Cash Flow Hedging Relationships Foreign currency contracts $ 798 $ 798 $ 90 $ 31 Derivatives in Fair Value Hedging Relationships Interest rate contracts $ 4,418 $ 4,993 $ 169 $ 371 Derivatives in Net Investment Hedging Relationships Net investment hedges $ 2,902 $ 3,013 $ 90 $ (87 ) Derivatives Not Designated as Hedging Instruments Foreign currency contracts $ 4,845 $ 6,482 $ 51 $ (10 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) March 31, 2017 June 30, 2016 Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ (2 ) $ (2 ) Foreign currency contracts (4 ) — Total $ (6 ) $ (2 ) Derivatives in Net Investment Hedging Relationships Net investment hedges $ 54 $ (53 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the three and nine months ended March 31, 2017 and 2016 are as follows: Amount of Gain/(Loss) Reclassified from AOCI into Earnings Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships (1) Interest rate contracts $ — $ — $ — $ 3 Foreign currency contracts (25 ) (43 ) 74 (44 ) Total $ (25 ) $ (43 ) $ 74 $ (41 ) Amount of Gain/(Loss) Recognized in Earnings Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Derivatives in Fair Value Hedging Relationships (2) Interest rate contracts $ (22 ) $ 132 $ (202 ) $ 171 Debt 22 (132 ) 202 (171 ) Total $ — $ — $ — $ — Derivatives in Net Investment Hedging Relationships (2) Net investment hedges $ 6 $ — $ 6 $ — Derivatives Not Designated as Hedging Instruments (3) Foreign currency contracts $ 155 $ 191 $ (29 ) $ (29 ) (1) The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense. (2) The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense. (3) The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A. This gain or loss substantially offsets the foreign currency mark-to-market impact of the related exposure. |
ACCUMULATED OTHER COMPREHENSI22
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The table below presents the changes in Accumulated other comprehensive income/(loss) by component and the reclassifications out of Accumulated other comprehensive income/(loss): Changes in Accumulated Other Comprehensive Income/(Loss) by Component Hedges Investment Securities Pension and Other Retiree Benefits Financial Statement Translation Total Balance at June 30, 2016 $ (2,641 ) $ 34 $ (5,798 ) $ (7,502 ) $ (15,907 ) OCI before reclassifications (1) 631 (56 ) 338 (1,146 ) (233 ) Amounts reclassified from AOCI (2) (3) (4) (74 ) (8 ) 384 (117 ) 185 Net current period OCI 557 (64 ) 722 (1,263 ) (48 ) Balance at March 31, 2017 $ (2,084 ) $ (30 ) $ (5,076 ) $ (8,765 ) $ (15,955 ) (1) Net of tax expense/(benefit) of $337 , $(6) and $91 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (2) Net of tax expense/(benefit) of $0 , $0 and $151 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (3) See Note 7 for classification of gains and losses from hedges in the Consolidated Statements of Earnings. Gains and losses on investment securities are reclassified from AOCI into Other non-operating income/(loss), net. Gains and losses on pension and other retiree benefits are reclassified from AOCI into Cost of products sold and SG&A and are included in the computation of net periodic pension costs. (4) Amounts reclassified from AOCI for financial statement translation relate to accumulated translation associated with foreign entities sold as part of the sale of the Beauty Brands business. These amounts were reclassified into Net earnings from discontinued operations in the Consolidated Statement of Earnings. |
RESTRUCTURING PROGRAM (Tables)
RESTRUCTURING PROGRAM (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents restructuring activity for the nine months ended March 31, 2017 : Nine Months Ended March 31, 2017 Accrual Balance June 30, 2016 Charges Previously Reported (Six Months Ended December 31, 2016) Charges for the Three Months Ended March 31, 2017 Cash Spent (1) Charges Against Assets Accrual Balance March 31, 2017 Separations $ 243 $ 96 $ 43 $ (182 ) $ — $ 200 Asset-related costs — 206 80 — (286 ) — Other costs 72 46 34 (104 ) — 48 Total $ 315 $ 348 $ 157 $ (286 ) $ (286 ) $ 248 (1) Includes liabilities transferred to Coty related to our Beauty Brands divestiture. |
Restructuring and Related Costs [Table Text Block] | However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments: Three Months Ended March 31, 2017 Nine Months Ended March 31, 2017 Beauty $ 23 $ 63 Grooming 14 31 Health Care 1 9 Fabric & Home Care 26 103 Baby, Feminine & Family Care 41 141 Corporate (1) 52 158 Total Company $ 157 $ 505 (1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, and costs related to discontinued operations from our Beauty Brands businesses. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes Net earnings/(loss) from discontinued operations and reconciles to the Consolidated Statements of Earnings: Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Beauty Brands $ — $ (2 ) $ 5,217 $ 386 Batteries — 448 — 241 Net earnings/(loss) from discontinued operations $ — $ 446 $ 5,217 $ 627 |
Discontinued Operations and Disposal Groups - Beauty Brands [Table Text Block] | The following is selected financial information underlying the Net earnings/(loss) from discontinued operations for the Beauty Brands: Beauty Brands Three Months Ended March 31 Nine Months Ended March 31 2017 2016 2017 2016 Net sales $ — $ 1,092 $ 1,159 $ 3,715 Cost of products sold — 365 450 1,193 Selling, general and administrative expense — 672 783 1,983 Interest expense — — 14 — Intangible asset impairment charges — 48 — 48 Other non-operating income/(loss), net — (6 ) 16 (8 ) Earnings/(loss) from discontinued operations before income taxes $ — $ 1 $ (72 ) $ 483 Income taxes on discontinued operations — 3 46 97 Gain on sale of business before income taxes $ — $ — $ 5,197 $ — Income tax expense/(benefit) on sale of business — — (138 ) (1) — Net earnings/(loss) from discontinued operations $ — $ (2 ) $ 5,217 $ 386 (1) The income tax benefit of the Beauty Brands divestiture represents the reversal of underlying deferred tax balances partially offset by current tax expense related to the transaction. The following is selected financial information related to cash flows from discontinued operations for the Beauty Brands: Beauty Brands Nine Months Ended March 31 2017 2016 NON-CASH OPERATING ITEMS Depreciation and amortization $ 24 $ 78 Deferred income tax benefit (649 ) — Before tax gain on sale of business 5,210 — Goodwill and intangible asset impairment charges $ — $ 48 Net increase in accrued taxes 307 — CASH FLOWS FROM OPERATING ACTIVITIES Cash taxes paid $ 204 $ — CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures $ 38 $ 65 The major components of assets and liabilities of the Beauty Brands held for sale are provided below. Beauty Brands June 30, 2016 Cash $ 40 Restricted cash 996 Accounts receivable 384 Inventories 494 Prepaid expenses and other current assets 126 Property, plant and equipment, net 629 Goodwill and intangible assets, net 4,411 Other noncurrent assets 105 Current assets held for sale $ 7,185 Accounts payable $ 148 Accrued and other liabilities 384 Noncurrent deferred tax liabilities 370 Long-term debt 996 Other noncurrent liabilities 445 Current liabilities held for sale $ 2,343 |
Disposal Groups, Including Discontinued Operations - Batteries [Table Text Block] | The following is selected financial information included in Net earnings/(loss) from discontinued operations for the Batteries business: Batteries Three Months Ended March 31, 2016 Nine Months Ended March 31, 2016 Net sales $ 320 $ 1,517 Earnings before impairment charges and income taxes 35 266 Impairment charges — (402 ) Income tax (expense)/benefit (9 ) (45 ) Gain on sale before income taxes (288 ) (288 ) Income tax expense on sale (1) 710 710 Net earnings/(loss) from discontinued operations $ 448 $ 241 (1) The income tax benefit of the Batteries divestiture primarily represents the reversal of underlying deferred tax balances. |
NEW ACCOUNTING PRONOUNCEMENTS25
NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES - ADDITIONAL INFORMATION (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Income Tax Benefit (Expense), behind New Accounting Pronouncement | $ 189 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 15,605 | $ 15,755 | $ 48,979 | $ 49,197 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,336 | 3,226 | 10,330 | 10,683 |
Net Earnings/(Loss) from Continuing Operations | 2,556 | 2,337 | 7,992 | 8,019 |
Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,675 | 2,719 | 8,613 | 8,723 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 531 | 604 | 2,028 | 2,200 |
Net Earnings/(Loss) from Continuing Operations | 396 | 458 | 1,528 | 1,667 |
Grooming | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,525 | 1,623 | 4,972 | 5,103 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 437 | 469 | 1,580 | 1,547 |
Net Earnings/(Loss) from Continuing Operations | 333 | 356 | 1,217 | 1,187 |
Health Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,841 | 1,773 | 5,774 | 5,547 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 470 | 414 | 1,574 | 1,426 |
Net Earnings/(Loss) from Continuing Operations | 310 | 278 | 1,052 | 990 |
Fabric & Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 4,957 | 5,028 | 15,529 | 15,626 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 972 | 1,014 | 3,226 | 3,311 |
Net Earnings/(Loss) from Continuing Operations | 599 | 652 | 2,052 | 2,172 |
Baby, Feminine & Family Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 4,471 | 4,506 | 13,711 | 13,874 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 890 | 976 | 2,973 | 3,124 |
Net Earnings/(Loss) from Continuing Operations | 555 | 631 | 1,932 | 2,063 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 136 | 106 | 380 | 324 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 36 | (251) | (1,051) | (925) |
Net Earnings/(Loss) from Continuing Operations | $ 363 | $ (38) | $ 211 | $ (60) |
GOODWILL AND OTHER INTANGIBLE27
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Oct. 01, 2016 | Jun. 30, 2016USD ($) | |
Other Significant Noncash Transactions [Line Items] | ||||||
Goodwill | $ 43,682 | $ 43,682 | $ 44,350 | |||
Amortization of Intangible Assets | $ 79 | $ 98 | $ 248 | $ 301 | ||
Shave Care | ||||||
Other Significant Noncash Transactions [Line Items] | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | 10.00% | ||||
Goodwill | $ 18,900 | $ 18,900 | ||||
Beauty Brands | ||||||
Other Significant Noncash Transactions [Line Items] | ||||||
Disposal Groups - Number of Product Categories | 4 | |||||
Disposal Groups - Number of Brands | 41 | |||||
Intangible Assets with Indefinite Lives | Gillette | ||||||
Other Significant Noncash Transactions [Line Items] | ||||||
Intangible Assets, Net (Including Goodwill) | $ 15,700 | $ 15,700 |
GOODWILL AND OTHER INTANGIBLE28
GOODWILL AND OTHER INTANGIBLE ASSETS - CHANGE IN THE NET CARRYING AMOUNT OF GOODWILL BY GLOBAL BUSINESS UNIT (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | $ 44,350 |
Goodwill, Acquisitions and Divestitures | (13) |
Goodwill, Translation and Other | (655) |
Goodwill at March 31, 2017 | 43,682 |
Beauty | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | 12,645 |
Goodwill, Acquisitions and Divestitures | 0 |
Goodwill, Translation and Other | (227) |
Goodwill at March 31, 2017 | 12,418 |
Grooming | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | 19,477 |
Goodwill, Acquisitions and Divestitures | 0 |
Goodwill, Translation and Other | (259) |
Goodwill at March 31, 2017 | 19,218 |
Health Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | 5,840 |
Goodwill, Acquisitions and Divestitures | (10) |
Goodwill, Translation and Other | (74) |
Goodwill at March 31, 2017 | 5,756 |
Fabric & Home Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | 1,856 |
Goodwill, Acquisitions and Divestitures | (3) |
Goodwill, Translation and Other | (24) |
Goodwill at March 31, 2017 | 1,829 |
Baby, Feminine & Family Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2016 | 4,532 |
Goodwill, Acquisitions and Divestitures | 0 |
Goodwill, Translation and Other | (71) |
Goodwill at March 31, 2017 | $ 4,461 |
GOODWILL AND OTHER INTANGIBLE29
GOODWILL AND OTHER INTANGIBLE ASSETS - IDENTIFIABLE INTANGIBLE ASSETS (Details) $ in Millions | Mar. 31, 2017USD ($) |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 28,910 |
Accumulated Amortization | (4,757) |
Intangible Assets with Indefinite Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 21,600 |
Accumulated Amortization | 0 |
Intangible Assets with Determinable Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 7,310 |
Accumulated Amortization | $ (4,757) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Earnings Per Share Reconciliation [Abstract] | |||||
Net Earnings/(Loss) | $ 2,556 | $ 2,783 | $ 13,209 | $ 8,646 | |
Net Earnings Attributable to Noncontrolling Interest | (34) | (33) | (98) | (89) | |
Net Earnings/(Loss) Attributable to P&G (Diluted) | 2,522 | 2,750 | 13,111 | 8,557 | |
Preferred Dividends, Net of Tax Benefit | (60) | (63) | (184) | (192) | |
Net Earnings/(Loss) Attributable to P&G Available to Common Shareholders (Basic) | $ 2,462 | $ 2,687 | $ 12,927 | $ 8,365 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Basic Weighted Average Common Shares Outstanding | 2,563.3 | 2,688.7 | 2,611.5 | 2,709.2 | |
Effect of Dilutive Securities | |||||
Conversion of Preferred Shares | [1] | 98.7 | 103.4 | 99.9 | 104.6 |
Exercise of Stock Options and Other Unvested Equity Awards | [2] | 43.5 | 42.9 | 44 | 41.8 |
Diluted Weighted Average Common Shares Outstanding | 2,705.5 | 2,835 | 2,755.4 | 2,855.6 | |
Basic Net Earnings/(Loss) Per Common Share | [3],[4] | $ 0.96 | $ 1 | $ 4.95 | $ 3.09 |
Diluted Net Earnings/(Loss) Per Common Share | [3],[4] | $ 0.93 | $ 0.97 | $ 4.76 | $ 3 |
Continuing Operations | |||||
Earnings Per Share Reconciliation [Abstract] | |||||
Net Earnings/(Loss) | $ 2,556 | $ 2,337 | $ 7,992 | $ 8,019 | |
Net Earnings Attributable to Noncontrolling Interest | (34) | (32) | (98) | (88) | |
Net Earnings/(Loss) Attributable to P&G (Diluted) | 2,522 | 2,305 | 7,894 | 7,931 | |
Preferred Dividends, Net of Tax Benefit | (60) | (63) | (184) | (192) | |
Net Earnings/(Loss) Attributable to P&G Available to Common Shareholders (Basic) | $ 2,462 | $ 2,242 | $ 7,710 | $ 7,739 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Basic Weighted Average Common Shares Outstanding | 2,563.3 | 2,688.7 | 2,611.5 | 2,709.2 | |
Effect of Dilutive Securities | |||||
Conversion of Preferred Shares | [1] | 98.7 | 103.4 | 99.9 | 104.6 |
Exercise of Stock Options and Other Unvested Equity Awards | [2] | 43.5 | 42.9 | 44 | 41.8 |
Diluted Weighted Average Common Shares Outstanding | 2,705.5 | 2,835 | 2,755.4 | 2,855.6 | |
Basic Net Earnings/(Loss) Per Common Share | [3] | $ 0.96 | $ 0.83 | $ 2.95 | $ 2.86 |
Diluted Net Earnings/(Loss) Per Common Share | [3] | $ 0.93 | $ 0.81 | $ 2.87 | $ 2.78 |
Discontinued Operations | |||||
Earnings Per Share Reconciliation [Abstract] | |||||
Net Earnings/(Loss) | $ 0 | $ 446 | $ 5,217 | $ 627 | |
Net Earnings Attributable to Noncontrolling Interest | 0 | (1) | 0 | (1) | |
Net Earnings/(Loss) Attributable to P&G (Diluted) | 0 | 445 | 5,217 | 626 | |
Preferred Dividends, Net of Tax Benefit | 0 | 0 | 0 | 0 | |
Net Earnings/(Loss) Attributable to P&G Available to Common Shareholders (Basic) | $ 0 | $ 445 | $ 5,217 | $ 626 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Basic Weighted Average Common Shares Outstanding | 2,563.3 | 2,688.7 | 2,611.5 | 2,709.2 | |
Effect of Dilutive Securities | |||||
Conversion of Preferred Shares | [1] | 98.7 | 103.4 | 99.9 | 104.6 |
Exercise of Stock Options and Other Unvested Equity Awards | [2] | 43.5 | 42.9 | 44 | 41.8 |
Diluted Weighted Average Common Shares Outstanding | 2,705.5 | 2,835 | 2,755.4 | 2,855.6 | |
Basic Net Earnings/(Loss) Per Common Share | [3] | $ 0 | $ 0.17 | $ 2 | $ 0.23 |
Diluted Net Earnings/(Loss) Per Common Share | [3] | $ 0 | $ 0.16 | $ 1.89 | $ 0.22 |
[1] | Despite being included currently in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035. | ||||
[2] | Weighted average outstanding stock options of approximately 7 million and 33 million for the three months ended March 31, 2017 and 2016, respectively, and approximately 16 million and 51 million for the nine months ended March 31, 2017 and 2016, respectively, were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). | ||||
[3] | Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. | ||||
[4] | Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble. |
EARNINGS PER SHARE - ANTIDILUTI
EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Employee Stock Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 7 | 33 | 16 | 51 |
[1] | Weighted average outstanding stock options of approximately 7 million and 33 million for the three months ended March 31, 2017 and 2016, respectively, and approximately 16 million and 51 million for the nine months ended March 31, 2017 and 2016, respectively, were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). |
SHARE-BASED COMPENSATION AND 32
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||
Allocated Share-based Compensation Expense | $ 93 | $ 79 | $ 211 | $ 220 | |
Pension and Other Retiree Benefits | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | [1] | 77 | 85 | 430 | 256 |
Other Postretirement Benefit Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | [1] | $ (23) | $ (26) | $ 16 | $ (75) |
[1] | The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016. |
RISK MANAGEMENT ACTIVITIES AN33
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 19,905 | $ 24,362 |
Long Term Debt, Current Maturities Measured at Fair Value | 1,670 | 2,761 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 1,705 | 2,331 |
U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 2,293 | 292 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 3,525 | 4,513 |
Corporate Bond Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 574 | 382 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | $ 2,148 | $ 1,018 |
RISK MANAGEMENT ACTIVITIES AN34
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value Asset | $ 8,607 | $ 6,274 |
U.S. Government Securities | ||
Fair Value Asset | 5,795 | 4,839 |
Corporate Bond Securities | ||
Fair Value Asset | 2,715 | 1,407 |
Other Investments | ||
Fair Value Asset | $ 97 | $ 28 |
RISK MANAGEMENT ACTIVITIES AN35
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - DERIVATIVE NOTIONAL AMOUNTS AND FAIR VALUE (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 4,845 | $ 6,482 |
Fair Value Asset/(Liability) | 51 | (10) |
Derivatives in Cash Flow Hedging Relationships | Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 798 | 798 |
Fair Value Asset/(Liability) | 90 | 31 |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 4,418 | 4,993 |
Fair Value Asset/(Liability) | 169 | 371 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Notional Amount | 2,902 | 3,013 |
Fair Value Asset/(Liability) | $ 90 | $ (87) |
RISK MANAGEMENT ACTIVITIES AN36
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (EFFECTIVE PORTION) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2016 | |
Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ (6) | $ (2) |
Derivatives in Cash Flow Hedging Relationships | Interest Rate Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) | (2) | (2) |
Derivatives in Cash Flow Hedging Relationships | Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) | (4) | 0 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ 54 | $ (53) |
RISK MANAGEMENT ACTIVITIES AN37
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Derivatives Not Designated as Hedging Instruments | Foreign Currency Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Recognized in Earnings | [1] | $ 155 | $ 191 | $ (29) | $ (29) |
Derivatives in Cash Flow Hedging Relationships | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | [2] | (25) | (43) | 74 | (41) |
Derivatives in Cash Flow Hedging Relationships | Interest Rate Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | [2] | 0 | 0 | 0 | 3 |
Derivatives in Cash Flow Hedging Relationships | Foreign Currency Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | [2] | (25) | (43) | 74 | (44) |
Derivatives in Fair Value Hedging Relationships | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Recognized in Earnings | [3] | 0 | 0 | 0 | 0 |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Recognized in Earnings | [3] | (22) | 132 | (202) | 171 |
Derivatives in Fair Value Hedging Relationships | Debt | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Recognized in Earnings | [3] | 22 | (132) | 202 | (171) |
Derivatives in Net Investment Hedging Relationships | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain/(Loss) Recognized in Earnings | [3] | $ 6 | $ 0 | $ 6 | $ 0 |
[1] | The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A. This gain or loss substantially offsets the foreign currency mark-to-market impact of the related exposure. | ||||
[2] | The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense. | ||||
[3] | The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense. |
ACCUMULATED OTHER COMPREHENSI38
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - CHANGES IN AOCI AND RECLASSIFICATION OUT OF AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | ||
Accumulated Other Comprehensive Income/(Loss) | $ (15,955) | $ (15,955) | $ (15,907) | |||
OCI before Reclassifications | (233) | |||||
Other Comprehensive Income (Loss), Net of Tax | 567 | $ 692 | (48) | $ (862) | ||
Hedges | ||||||
Accumulated Other Comprehensive Income/(Loss) | (2,084) | (2,084) | (2,641) | |||
OCI before Reclassifications | [1] | 631 | ||||
Other Comprehensive Income (Loss), Net of Tax | 557 | |||||
Investment Securities | ||||||
Accumulated Other Comprehensive Income/(Loss) | (30) | (30) | 34 | |||
OCI before Reclassifications | [1] | (56) | ||||
Other Comprehensive Income (Loss), Net of Tax | (64) | |||||
Amounts Reclassified from AOCI | ||||||
Other Comprehensive Income (Loss), Net of Tax | 185 | |||||
Amounts Reclassified from AOCI | Hedges | ||||||
Other Comprehensive Income (Loss), Net of Tax | [2],[3],[4] | (74) | ||||
Amounts Reclassified from AOCI | Investment Securities | ||||||
Other Comprehensive Income (Loss), Net of Tax | [2],[3],[4] | (8) | ||||
Pension and Other Retiree Benefits | ||||||
Accumulated Other Comprehensive Income/(Loss) | (5,076) | (5,076) | (5,798) | |||
OCI before Reclassifications | [1] | 338 | ||||
Other Comprehensive Income (Loss), Net of Tax | 722 | |||||
Pension and Other Retiree Benefits | Amounts Reclassified from AOCI | ||||||
Other Comprehensive Income (Loss), Net of Tax | [2],[3],[4] | 384 | ||||
Financial Statement Translation | ||||||
Accumulated Other Comprehensive Income/(Loss) | $ (8,765) | (8,765) | $ (7,502) | |||
OCI before Reclassifications | (1,146) | |||||
Other Comprehensive Income (Loss), Net of Tax | (1,263) | |||||
Financial Statement Translation | Amounts Reclassified from AOCI | ||||||
Other Comprehensive Income (Loss), Net of Tax | $ (117) | |||||
[1] | Net of tax expense/(benefit) of $337, $(6) and $91 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||
[2] | Amounts reclassified from AOCI for financial statement translation relate to accumulated translation associated with foreign entities sold as part of the sale of the Beauty Brands business. These amounts were reclassified into Net earnings from discontinued operations in the Consolidated Statement of Earnings. | |||||
[3] | Net of tax expense/(benefit) of $0, $0 and $151 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |||||
[4] | See Note 7 for classification of gains and losses from hedges in the Consolidated Statements of Earnings. Gains and losses on investment securities are reclassified from AOCI into Other non-operating income/(loss), net. Gains and losses on pension and other retiree benefits are reclassified from AOCI into Cost of products sold and SG&A and are included in the computation of net periodic pension costs. |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX EXPENSE (BENEFIT) (Details) $ in Millions | 9 Months Ended | |
Mar. 31, 2017USD ($) | ||
Hedges | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | $ 337 | [1] |
Investment Securities | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (6) | [1] |
Pension and Other Retiree Benefits | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 91 | [1] |
Amounts Reclassified from AOCI | Hedges | ||
Other Comprehensive Income (Loss), Tax | 0 | [2] |
Amounts Reclassified from AOCI | Investment Securities | ||
Other Comprehensive Income (Loss), Tax | 0 | [2] |
Amounts Reclassified from AOCI | Pension and Other Retiree Benefits | ||
Other Comprehensive Income (Loss), Tax | $ 151 | [2] |
[1] | Net of tax expense/(benefit) of $337, $(6) and $91 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. | |
[2] | Net of tax expense/(benefit) of $0, $0 and $151 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. |
RESTRUCTURING PROGRAM - ADDITIO
RESTRUCTURING PROGRAM - ADDITIONAL INFORMATION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 60 Months Ended | 69 Months Ended | 72 Months Ended |
Mar. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($)employee | Jun. 30, 2016USD ($) | Mar. 31, 2017employee | Jun. 30, 2017USD ($) | |
Restructuring Charges | $ 157 | $ 348 | $ 505 | $ 4,900 | ||
Minimum | ||||||
Restructuring and Related Cost, Amounts Historically Incurred | 250 | |||||
Maximum | ||||||
Restructuring and Related Cost, Amounts Historically Incurred | 500 | |||||
Selling, General and Administrative Expense | ||||||
Restructuring Charges | 25 | 72 | ||||
Cost of Products Sold | ||||||
Restructuring Charges | $ 132 | $ 409 | ||||
Non-Manufacturing Overhead Personnel | ||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 26.00% | |||||
Restructuring and Related Cost, Number of Severance Packages Executed | employee | 70 | 260 | 9,800 | |||
Separations | ||||||
Restructuring Charges | $ 43 | 96 | 2,300 | |||
Restructuring and Related Cost, Number of Severance Packages Executed | employee | 480 | 1,520 | 18,590 | |||
Asset-related Costs | ||||||
Restructuring Charges | $ 80 | 206 | 1,400 | |||
Other Costs | ||||||
Restructuring Charges | $ 34 | $ 46 | $ 1,200 | |||
Scenario, Forecast | ||||||
Restructuring and Related Cost, Expected Cost | $ 5,500 | |||||
Scenario, Forecast | Non-Manufacturing Overhead Personnel | Minimum | ||||||
Restructuring And Related Cost, Expected Number Of Positions Eliminated, Percent | 25.00% | |||||
Scenario, Forecast | Non-Manufacturing Overhead Personnel | Maximum | ||||||
Restructuring And Related Cost, Expected Number Of Positions Eliminated, Percent | 30.00% |
RESTRUCTURING PROGRAM - RESTRUC
RESTRUCTURING PROGRAM - RESTRUCTURING RESERVE BY TYPE OF COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 60 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | ||
Restructuring Reserve [Roll Forward] | |||||
Accrual Balance June 30, 2016 | $ 315 | $ 315 | |||
Restructuring Charges | $ 157 | 348 | 505 | $ 4,900 | |
Cash Spent | [1] | (286) | |||
Charges Against Assets | (286) | ||||
Accrual Balance March 31, 2017 | 248 | 248 | 315 | ||
Separations | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrual Balance June 30, 2016 | 243 | 243 | |||
Restructuring Charges | 43 | 96 | 2,300 | ||
Cash Spent | [1] | (182) | |||
Charges Against Assets | 0 | ||||
Accrual Balance March 31, 2017 | 200 | 200 | 243 | ||
Asset-related Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrual Balance June 30, 2016 | 0 | 0 | |||
Restructuring Charges | 80 | 206 | 1,400 | ||
Cash Spent | [1] | 0 | |||
Charges Against Assets | (286) | ||||
Accrual Balance March 31, 2017 | 0 | 0 | 0 | ||
Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrual Balance June 30, 2016 | 72 | 72 | |||
Restructuring Charges | 34 | $ 46 | 1,200 | ||
Cash Spent | [1] | (104) | |||
Charges Against Assets | 0 | ||||
Accrual Balance March 31, 2017 | $ 48 | $ 48 | $ 72 | ||
[1] | Includes liabilities transferred to Coty related to our Beauty Brands divestiture. |
RESTRUCTURING PROGRAM - RESTR42
RESTRUCTURING PROGRAM - RESTRUCTURING COSTS PER SEGMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 60 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 157 | $ 348 | $ 505 | $ 4,900 | |
Beauty | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 23 | 63 | |||
Grooming | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 14 | 31 | |||
Health Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1 | 9 | |||
Fabric & Home Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 26 | 103 | |||
Baby, Feminine & Family Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 41 | 141 | |||
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | [1] | $ 52 | $ 158 | ||
[1] | Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, and costs related to discontinued operations from our Beauty Brands businesses. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2017USD ($)audittaxable_jurisdiction | |
Loss Contingencies [Line Items] | |
Number of Taxable Jurisdictions | taxable_jurisdiction | 140 |
Liability for Uncertain Tax Positions, Current | $ | $ 170 |
Minimum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 50 |
Maximum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 60 |
DISCONTINUED OPERATIONS - ADDIT
DISCONTINUED OPERATIONS - ADDITIONAL INFORMATION (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Oct. 01, 2016 | Feb. 29, 2016USD ($)shares | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 446 | $ 5,217 | $ 627 | ||||
Beauty Brands | ||||||||
Disposal Groups - Number of Product Categories | 4 | |||||||
Disposal Groups - Number of Brands | 41 | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 11,400 | $ 11,400 | ||||||
Disposal Groups - Consideration Received (Shares) | shares | 105 | 105 | ||||||
Disposal Groups - Equity of New Company | $ 9,400 | $ 9,400 | ||||||
Disposal Groups - Value of Debt Assumed | 1,900 | 1,900 | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | $ 5,300 | (2) | 5,217 | 386 | |||
Intangible Asset Impairment Charges | 0 | 48 | 0 | 48 | ||||
Batteries | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,200 | |||||||
Disposal Groups - Consideration Received (Shares) | shares | 52.5 | |||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 448 | $ 0 | $ 241 | ||||
Disposal Group, Cash Contributed in Re-Capitalization | $ 1,900 | |||||||
Intangible Asset Impairment Charges | $ 402 | |||||||
Intangible Asset Impairment Charges After Tax | 350 | |||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 422 |
DISCONTINUED OPERATIONS - ADD45
DISCONTINUED OPERATIONS - ADDITIONAL INFORMATION ON TABLES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | |
Payments for Deposits Applied to Debt Retirements | $ 2,500 | ||
Beauty Brands | |||
Disposal Groups - Transition Cost | $ 167 | ||
Disposal Groups - Total Loan Draw | $ 1,900 | ||
Disposal Groups - Term B Loan Draw | $ 1,000 |
DISCONTINUED OPERATIONS - NET E
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 446 | $ 5,217 | $ 627 | |
Beauty Brands | |||||
Net Earnings/(Loss) from Discontinued Operations | 0 | $ 5,300 | (2) | 5,217 | 386 |
Batteries | |||||
Net Earnings/(Loss) from Discontinued Operations | 0 | 448 | 0 | 241 | |
Discontinued Operations | |||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 446 | $ 5,217 | $ 627 |
DISCONTINUED OPERATIONS - NET47
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS FOR BEAUTY BRANDS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 446 | $ 5,217 | $ 627 | |||
Beauty Brands | |||||||
Net Sales, Discontinued Operations | 0 | 1,092 | 1,159 | 3,715 | |||
Cost of Products Sold, Discontinued Operations | 0 | 365 | 450 | 1,193 | |||
Selling, General and Administrative Expense, Discontinued Operations | 0 | 672 | 783 | 1,983 | |||
Interest Expense, Discontinued Operations | 0 | 0 | 14 | 0 | |||
Goodwill and Intangible Asset Impairment | 0 | 48 | 0 | 48 | |||
Other Income, Discontinued Operations | 0 | 16 | |||||
Disposal Group, Including Discontinued Operation, Other Expense | (6) | (8) | |||||
Earnings/(Loss) from Discontinued Operations before Income Taxes | 0 | 1 | (72) | 483 | |||
Income Taxes on Discontinued Operations | 0 | 3 | 46 | 97 | |||
Gain on Disposition of Business, Before Income Taxes | 0 | 0 | 5,197 | 0 | |||
Discontinued Operation, Tax (Expense) Benefit from Provision for (Gain) Loss on Disposal | 0 | [1] | 0 | (138) | [1] | 0 | |
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 5,300 | $ (2) | $ 5,217 | $ 386 | ||
[1] | The income tax benefit of the Beauty Brands divestiture represents the reversal of underlying deferred tax balances partially offset by current tax expense related to the transaction. |
DISCONTINUED OPERATIONS - CASH
DISCONTINUED OPERATIONS - CASH FLOWS FOR BEAUTY BRANDS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Deferred Income Tax Expense (Benefit) | $ (382) | $ (428) | ||
Beauty Brands | ||||
Depreciation and Amortization, Discontinued Operations | 24 | 78 | ||
Deferred Income Tax Expense (Benefit) | (649) | 0 | ||
Gain (Loss) on Disposition of Business | 5,210 | 0 | ||
Goodwill and Intangible Asset Impairment | $ 0 | $ 48 | 0 | 48 |
Increase (Decrease) in Accrued Taxes Payable | 307 | 0 | ||
Income Taxes Paid | 204 | 0 | ||
Capital Expenditure, Discontinued Operations | $ 38 | $ 65 |
DISCONTINUED OPERATIONS - MAJOR
DISCONTINUED OPERATIONS - MAJOR COMPONENTS OF ASSETS AND LIABILITIES FOR BEAUTY BRANDS (Details) - Beauty Brands $ in Millions | Jun. 30, 2016USD ($) |
Cash, Discontinued Operations | $ 40 |
Restricted Cash, Discontinued Operations | 996 |
Accounts Receivable, Discontinued Operations | 384 |
Inventories, Discontinued Operations | 494 |
Prepaid Expenses and Other Current Assets, Discontinued Operations | 126 |
Property, Plant and Equipment, Net, Current, Discontinued Operations | 629 |
Goodwill and Intangible Assets, Net, Current, Discontinued Operations | 4,411 |
Other Noncurrent Assets, Current, Discontinued Operations | 105 |
Total Assets Held for Sale, Current, Discontinued Operations | 7,185 |
Accounts Payable, Discontinued Operations | 148 |
Accrued and Other Liabilities, Discontinued Operations | 384 |
Noncurrent Deferred Tax Liabilities, Current, Discontinued Operations | 370 |
Long-term Debt, Discontinued Operations | 996 |
Other Noncurrent Liabilities, Current, Discontinued Operations | 445 |
Total Liabilities Held for Sale, Discontinued Operations | $ 2,343 |
DISCONTINUED OPERATIONS - NET50
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS FOR BATTERIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 446 | $ 5,217 | $ 627 | |
Batteries | |||||
Net Sales, Discontinued Operations | 320 | 1,517 | |||
Earnings Before Impairment Charges and Income Taxes, Discontinued Operations | 35 | 266 | |||
Disposal Group, Including Discontinued Operation, Other Expense | 0 | (402) | |||
Income Tax (Expense)/Benefit on Discontinued Operations | (9) | (45) | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (288) | (288) | |||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | [1] | 710 | 710 | ||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 448 | $ 0 | $ 241 | |
[1] | The income tax benefit of the Batteries divestiture primarily represents the reversal of underlying deferred tax balances. |