DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Dec. 31, 2018shares | |
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 | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Trading Symbol | PG |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 2,501,579,709 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Sales | $ 17,438 | $ 17,395 | $ 34,128 | $ 34,048 | |
Cost of Products Sold | 8,919 | 8,709 | 17,403 | 16,978 | |
Selling, General and Administrative Expense | 4,623 | 4,767 | 9,275 | 9,503 | |
Operating Income | 3,896 | 3,919 | 7,450 | 7,567 | |
Interest Expense | 138 | 122 | 267 | 237 | |
Interest Income | 63 | 66 | 116 | 115 | |
Other Non-operating Income/(Loss), Net | 95 | 170 | 557 | 339 | |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,916 | 4,033 | 7,856 | 7,784 | |
Income Taxes on Continuing Operations | 700 | 1,472 | 1,429 | 2,353 | |
Net Earnings | 3,216 | 2,561 | 6,427 | 5,431 | |
Net Income (Loss) Attributable to Noncontrolling Interest | $ 22 | 66 | $ 34 | 83 | |
Net Earnings Attributable to Procter & Gamble | $ 2,495 | $ 5,348 | |||
Basic Net Earnings Per Common Share | |||||
Basic Net Earnings Per Common Share | [1],[2] | $ 1.25 | $ 0.96 | $ 2.51 | $ 2.05 |
Diluted Net Earnings Per Common Share | |||||
Diluted Net Earnings Per Common Share | [1],[2] | $ 1.22 | $ 0.93 | $ 2.44 | $ 2 |
Diluted Weighted Average Common Shares Outstanding | 2,623 | 2,669.6 | 2,617.6 | 2,680.1 | |
[1] | Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble. | ||||
[2] | Net earnings per 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 | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Earnings | $ 3,216 | $ 2,561 | $ 6,427 | $ 5,431 |
Financial Statement Translation | (370) | 188 | (586) | 1,028 |
Unrealized Gains/(Losses) on Hedges | 192 | (167) | 199 | (630) |
Unrealized Gains/(Losses) on Investment Securities | 58 | (61) | 53 | (65) |
Unrealized Gains/(Losses) on Defined Benefit Retirement Plans | 98 | 161 | 250 | 128 |
Total Other Comprehensive Income (Loss), Net of Tax | (22) | 121 | (84) | 461 |
Total Comprehensive Income/(Loss) | 3,194 | 2,682 | 6,343 | 5,892 |
Less: Total Comprehensive Income Attributable to Noncontrolling Interest | 23 | 66 | 31 | 83 |
Total Comprehensive Income/(Loss) Attributable to Procter & Gamble | $ 3,171 | $ 2,616 | $ 6,312 | $ 5,809 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions | Dec. 31, 2018 | Jun. 30, 2018 |
Current Assets | ||
Cash and Cash Equivalents | $ 3,696 | $ 2,569 |
Available-for-Sale Investment Securities | 8,421 | 9,281 |
Accounts Receivable | 5,055 | 4,686 |
Inventories | ||
Materials and Supplies | 1,524 | 1,335 |
Work in Process | 593 | 588 |
Finished Goods | 3,164 | 2,815 |
Total Inventories | 5,281 | 4,738 |
Prepaid Expenses and Other Current Assets | 1,978 | 2,046 |
Total Current Assets | 24,431 | 23,320 |
Property, Plant and Equipment, Net | 20,822 | 20,600 |
Goodwill | 46,932 | 45,175 |
Trademarks and Other Intangible Assets, Net | 25,947 | 23,902 |
Other Noncurrent Assets | 5,555 | 5,313 |
Total Assets | 123,687 | 118,310 |
Current Liabilities | ||
Accounts Payable | 10,266 | 10,344 |
Accrued and Other Liabilities | 8,868 | 7,470 |
Debt Due Within One Year | 12,113 | 10,423 |
Total Current Liabilities | 31,247 | 28,237 |
Long-Term Debt | 21,514 | 20,863 |
Deferred Income Taxes | 6,872 | 6,163 |
Other Noncurrent Liabilities | 9,611 | 10,164 |
Total Liabilities | 69,244 | 65,427 |
Shareholders' Equity | ||
Preferred Stock | $ 946 | $ 967 |
Common Stock, Shares, Issued | 4,009.2 | 4,009.2 |
Common Stock, Value, Issued | $ 4,009 | $ 4,009 |
Additional Paid in Capital | 63,679 | 63,846 |
Reserve For ESOP Debt Retirement | (1,178) | (1,204) |
Accumulated Other Comprehensive Income/(Loss) | (15,156) | (14,749) |
Treasury Stock | (99,480) | (99,217) |
Retained Earnings | 101,170 | 98,641 |
Noncontrolling Interest | 453 | 590 |
Total Shareholders' Equity | 54,443 | 52,883 |
Total Liabilities and Shareholders' Equity | $ 123,687 | $ 118,310 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash and Cash Equivalents, Beginning of Period | $ 2,569 | $ 5,569 |
Operating Activities | ||
Net Earnings | 6,427 | 5,431 |
Depreciation and Amortization | 1,293 | 1,368 |
Share-based Compensation Expense | 181 | 157 |
Deferred Income Taxes | 37 | (2,008) |
Gain (Loss) on Disposition of Assets | (370) | (158) |
Changes In: | ||
Accounts Receivable | (398) | (547) |
Inventories | (531) | (457) |
Accounts Payable, Accrued and Other Liabilities | 1,141 | 857 |
Other Operating Assets and Liabilities | (370) | 2,524 |
Other Noncash Expense | 164 | 148 |
Total Operating Activities | 7,574 | 7,315 |
Investing Activities | ||
Capital Expenditures | (1,781) | (1,900) |
Proceeds from Asset Sales | 18 | 201 |
Acquisitions, Net of Cash Acquired | (3,848) | (101) |
Purchases of Short-term Investments | (158) | (3,598) |
Proceeds from Sales of Short-term Investments | 1,117 | 1,643 |
Change in Other Investments | (58) | 50 |
Total Investing Activites | (4,710) | (3,705) |
Financing Activities | ||
Dividends to Shareholders | (3,703) | (3,636) |
Change in Short-term Debt | 1,206 | 1,524 |
Additions to Long-term Debt | 2,368 | 5,072 |
Reductions of Long-term Debt | (978) | (1,281) |
Treasury Stock Purchases | (2,003) | (4,253) |
Impact of Stock Options and Other | 1,486 | 698 |
Total Financing Activities | (1,624) | (1,876) |
Effect of Exchange Rate on Cash and Cash Equivalents | (113) | 129 |
Change in Cash and Cash Equivalents | 1,127 | 1,863 |
Cash and Cash Equivalents, End of Period | $ 3,696 | $ 7,432 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Consolidated Statements of Shareholders' Equity QTD - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Reserve for ESOP Debt Retirement [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding | 2,553,297 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 55,778 | $ 4,009 | $ 1,006 | $ 63,641 | $ (1,249) | $ (14,632) | $ (93,715) | $ 96,124 | $ 594 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.6896 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.3792 | ||||||||
Net Income (Loss) Attributable to Parent | $ 5,348 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 83 | ||||||||
Net Earnings | 5,431 | 5,348 | 83 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 461 | 461 | 0 | ||||||
Dividends, Common Stock | (3,512) | 3,512 | |||||||
Dividends, Preferred Stock | (124) | (124) | |||||||
Treasury Stock, Shares, Acquired | (46,736) | ||||||||
Stock Repurchased During Period, Value | (4,253) | 4,253 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 12,239 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 943 | 113 | 830 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,204 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (20) | (3) | (17) | |||||
ESOP Debt Impacts | (65) | (20) | (45) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (68) | (68) | |||||||
Common Stock, Shares, Outstanding | 2,536,958 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 55,415 | $ 4,009 | 991 | 63,705 | (1,229) | (14,292) | (95,563) | 97,197 | 597 |
Net Income (Loss) Attributable to Parent | 2,495 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 66 | ||||||||
Net Earnings | 2,561 | 2,495 | 66 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 121 | 121 | 0 | ||||||
Dividends, Common Stock | (1,751) | 1,751 | |||||||
Dividends, Preferred Stock | (62) | (62) | |||||||
Treasury Stock, Shares, Acquired | (19,409) | ||||||||
Stock Repurchased During Period, Value | (1,751) | 1,751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,791 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 240 | 51 | 189 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 664 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | (1) | (4) | |||||
ESOP Debt Impacts | (2) | 0 | (2) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (54) | (54) | |||||||
Common Stock, Shares, Outstanding | 2,521,004 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 54,721 | $ 4,009 | 986 | 63,757 | (1,229) | (14,171) | (97,121) | 97,881 | 609 |
Common Stock, Shares, Outstanding | 2,498,093 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 52,883 | $ 4,009 | 967 | 63,846 | (1,204) | (14,749) | (99,217) | 98,641 | 590 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.7172 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.4344 | ||||||||
Net Income (Loss) Attributable to Parent | 6,393 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 34 | 34 | |||||||
Net Earnings | 6,427 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (84) | (81) | (3) | ||||||
Dividends, Common Stock | (3,581) | 3,581 | |||||||
Dividends, Preferred Stock | (131) | (131) | |||||||
Treasury Stock, Shares, Acquired | (24,337) | ||||||||
Stock Repurchased During Period, Value | (2,003) | 2,003 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 25,389 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,669 | (53) | 1,722 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,435 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (21) | (3) | (18) | |||||
ESOP Debt Impacts | (74) | (26) | (48) | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (258) | (117) | (141) | ||||||
Common Stock, Shares, Outstanding | 2,491,408 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 52,504 | $ 4,009 | 951 | 63,711 | (1,177) | (15,133) | (99,956) | 99,831 | 268 |
Net Income (Loss) Attributable to Parent | 3,194 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | 22 | |||||||
Net Earnings | 3,216 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (22) | (23) | 1 | ||||||
Dividends, Common Stock | (1,790) | 1,790 | |||||||
Dividends, Preferred Stock | (65) | (65) | |||||||
Treasury Stock, Shares, Acquired | (8,647) | ||||||||
Stock Repurchased During Period, Value | (751) | 751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 18,021 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,149 | (73) | 1,222 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 798 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | 0 | (5) | |||||
ESOP Debt Impacts | (1) | (1) | 0 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 203 | 41 | 162 | ||||||
Common Stock, Shares, Outstanding | 2,501,580 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 54,443 | $ 4,009 | $ 946 | $ 63,679 | $ (1,178) | $ (15,156) | $ (99,480) | $ 101,170 | $ 453 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Consolidated Statements of Shareholders' Equity FYTD - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Reserve for ESOP Debt Retirement [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding | 2,553,297 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 55,778 | $ 4,009 | $ 1,006 | $ 63,641 | $ (1,249) | $ (14,632) | $ (93,715) | $ 96,124 | $ 594 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.6896 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.3792 | ||||||||
Net Income (Loss) Attributable to Parent | $ 5,348 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 83 | ||||||||
Net Earnings | 5,431 | 5,348 | 83 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 461 | 461 | 0 | ||||||
Dividends, Common Stock | (3,512) | 3,512 | |||||||
Dividends, Preferred Stock | (124) | (124) | |||||||
Treasury Stock, Shares, Acquired | (46,736) | ||||||||
Stock Repurchased During Period, Value | (4,253) | 4,253 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 12,239 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 943 | 113 | 830 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,204 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (20) | (3) | (17) | |||||
ESOP Debt Impacts | 65 | 20 | 45 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (68) | (68) | |||||||
Common Stock, Shares, Outstanding | 2,536,958 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 55,415 | $ 4,009 | 991 | 63,705 | (1,229) | (14,292) | (95,563) | 97,197 | 597 |
Net Income (Loss) Attributable to Parent | 2,495 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 66 | ||||||||
Net Earnings | 2,561 | 2,495 | 66 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 121 | 121 | 0 | ||||||
Dividends, Common Stock | (1,751) | 1,751 | |||||||
Dividends, Preferred Stock | (62) | (62) | |||||||
Treasury Stock, Shares, Acquired | (19,409) | ||||||||
Stock Repurchased During Period, Value | (1,751) | 1,751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,791 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 240 | 51 | 189 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 664 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | (1) | (4) | |||||
ESOP Debt Impacts | 2 | 0 | 2 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (54) | (54) | |||||||
Common Stock, Shares, Outstanding | 2,521,004 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 54,721 | $ 4,009 | 986 | 63,757 | (1,229) | (14,171) | (97,121) | 97,881 | 609 |
Common Stock, Shares, Outstanding | 2,498,093 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 52,883 | $ 4,009 | 967 | 63,846 | (1,204) | (14,749) | (99,217) | 98,641 | 590 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.7172 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.4344 | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (553) | (326) | (200) | (27) | |||||
Net Income (Loss) Attributable to Parent | 6,393 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 34 | 34 | |||||||
Net Earnings | 6,427 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (84) | (81) | (3) | ||||||
Dividends, Common Stock | (3,581) | 3,581 | |||||||
Dividends, Preferred Stock | (131) | (131) | |||||||
Treasury Stock, Shares, Acquired | (24,337) | ||||||||
Stock Repurchased During Period, Value | (2,003) | 2,003 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 25,389 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,669 | (53) | 1,722 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,435 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (21) | (3) | (18) | |||||
ESOP Debt Impacts | 74 | 26 | 48 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (258) | (117) | (141) | ||||||
Common Stock, Shares, Outstanding | 2,491,408 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 52,504 | $ 4,009 | 951 | 63,711 | (1,177) | (15,133) | (99,956) | 99,831 | 268 |
Net Income (Loss) Attributable to Parent | 3,194 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | 22 | |||||||
Net Earnings | 3,216 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (22) | (23) | 1 | ||||||
Dividends, Common Stock | (1,790) | 1,790 | |||||||
Dividends, Preferred Stock | (65) | (65) | |||||||
Treasury Stock, Shares, Acquired | (8,647) | ||||||||
Stock Repurchased During Period, Value | (751) | 751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 18,021 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,149 | (73) | 1,222 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 798 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | 0 | (5) | |||||
ESOP Debt Impacts | 1 | 1 | 0 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 203 | 41 | 162 | ||||||
Common Stock, Shares, Outstanding | 2,501,580 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 54,443 | $ 4,009 | $ 946 | $ 63,679 | $ (1,178) | $ (15,156) | $ (99,480) | $ 101,170 | $ 453 |
CONSOLIDATED STATEMENTS OF SH_3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Consolidated Statements of Shareholders' Equity PY QTD - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Reserve for ESOP Debt Retirement [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding | 2,553,297 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 55,778 | $ 4,009 | $ 1,006 | $ 63,641 | $ (1,249) | $ (14,632) | $ (93,715) | $ 96,124 | $ 594 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.6896 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.3792 | ||||||||
Net Earnings | $ 5,431 | 5,348 | 83 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 461 | 461 | 0 | ||||||
Dividends, Common Stock | (3,512) | 3,512 | |||||||
Dividends, Preferred Stock | (124) | (124) | |||||||
Treasury Stock, Shares, Acquired | (46,736) | ||||||||
Stock Repurchased During Period, Value | (4,253) | 4,253 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 12,239 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 943 | 113 | 830 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,204 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (20) | (3) | (17) | |||||
ESOP Debt Impacts | 65 | 20 | 45 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (68) | (68) | |||||||
Common Stock, Shares, Outstanding | 2,536,958 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 55,415 | $ 4,009 | 991 | 63,705 | (1,229) | (14,292) | (95,563) | 97,197 | 597 |
Net Earnings | 2,561 | 2,495 | 66 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 121 | 121 | 0 | ||||||
Dividends, Common Stock | (1,751) | 1,751 | |||||||
Dividends, Preferred Stock | (62) | (62) | |||||||
Treasury Stock, Shares, Acquired | (19,409) | ||||||||
Stock Repurchased During Period, Value | (1,751) | 1,751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,791 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 240 | 51 | 189 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 664 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | (1) | (4) | |||||
ESOP Debt Impacts | 2 | 0 | 2 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (54) | (54) | |||||||
Common Stock, Shares, Outstanding | 2,521,004 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 54,721 | $ 4,009 | 986 | 63,757 | (1,229) | (14,171) | (97,121) | 97,881 | 609 |
Common Stock, Shares, Outstanding | 2,498,093 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 52,883 | $ 4,009 | 967 | 63,846 | (1,204) | (14,749) | (99,217) | 98,641 | 590 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.7172 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.4344 | ||||||||
Net Earnings | $ 6,427 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (84) | (81) | (3) | ||||||
Dividends, Common Stock | (3,581) | 3,581 | |||||||
Dividends, Preferred Stock | (131) | (131) | |||||||
Treasury Stock, Shares, Acquired | (24,337) | ||||||||
Stock Repurchased During Period, Value | (2,003) | 2,003 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 25,389 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,669 | (53) | 1,722 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,435 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (21) | (3) | (18) | |||||
ESOP Debt Impacts | 74 | 26 | 48 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (258) | (117) | (141) | ||||||
Common Stock, Shares, Outstanding | 2,491,408 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 52,504 | $ 4,009 | 951 | 63,711 | (1,177) | (15,133) | (99,956) | 99,831 | 268 |
Net Earnings | 3,216 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (22) | (23) | 1 | ||||||
Dividends, Common Stock | (1,790) | 1,790 | |||||||
Dividends, Preferred Stock | (65) | (65) | |||||||
Treasury Stock, Shares, Acquired | (8,647) | ||||||||
Stock Repurchased During Period, Value | (751) | 751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 18,021 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,149 | (73) | 1,222 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 798 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | 0 | (5) | |||||
ESOP Debt Impacts | 1 | 1 | 0 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 203 | 41 | 162 | ||||||
Common Stock, Shares, Outstanding | 2,501,580 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 54,443 | $ 4,009 | $ 946 | $ 63,679 | $ (1,178) | $ (15,156) | $ (99,480) | $ 101,170 | $ 453 |
CONSOLIDATED STATEMENTS OF SH_4
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Consolidated Statements of Shareholders' Equity PY YTD - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Reserve for ESOP Debt Retirement [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding | 2,553,297 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 55,778 | $ 4,009 | $ 1,006 | $ 63,641 | $ (1,249) | $ (14,632) | $ (93,715) | $ 96,124 | $ 594 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.6896 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.3792 | ||||||||
Net Earnings | $ 5,431 | 5,348 | 83 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 461 | 461 | 0 | ||||||
Dividends, Common Stock | (3,512) | 3,512 | |||||||
Dividends, Preferred Stock | (124) | (124) | |||||||
Treasury Stock, Shares, Acquired | (46,736) | ||||||||
Stock Repurchased During Period, Value | (4,253) | 4,253 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 12,239 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 943 | 113 | 830 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,204 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (20) | (3) | (17) | |||||
ESOP Debt Impacts | 65 | 20 | 45 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (68) | (68) | |||||||
Common Stock, Shares, Outstanding | 2,536,958 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 55,415 | $ 4,009 | 991 | 63,705 | (1,229) | (14,292) | (95,563) | 97,197 | 597 |
Net Earnings | 2,561 | 2,495 | 66 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 121 | 121 | 0 | ||||||
Dividends, Common Stock | (1,751) | 1,751 | |||||||
Dividends, Preferred Stock | (62) | (62) | |||||||
Treasury Stock, Shares, Acquired | (19,409) | ||||||||
Stock Repurchased During Period, Value | (1,751) | 1,751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,791 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 240 | 51 | 189 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 664 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | (1) | (4) | |||||
ESOP Debt Impacts | 2 | 0 | 2 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (54) | (54) | |||||||
Common Stock, Shares, Outstanding | 2,521,004 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 54,721 | $ 4,009 | 986 | 63,757 | (1,229) | (14,171) | (97,121) | 97,881 | 609 |
Common Stock, Shares, Outstanding | 2,498,093 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 52,883 | $ 4,009 | 967 | 63,846 | (1,204) | (14,749) | (99,217) | 98,641 | 590 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.7172 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.4344 | ||||||||
Net Earnings | $ 6,427 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (84) | (81) | (3) | ||||||
Dividends, Common Stock | (3,581) | 3,581 | |||||||
Dividends, Preferred Stock | (131) | (131) | |||||||
Treasury Stock, Shares, Acquired | (24,337) | ||||||||
Stock Repurchased During Period, Value | (2,003) | 2,003 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 25,389 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,669 | (53) | 1,722 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 2,435 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (21) | (3) | (18) | |||||
ESOP Debt Impacts | 74 | 26 | 48 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | (258) | (117) | (141) | ||||||
Common Stock, Shares, Outstanding | 2,491,408 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 52,504 | $ 4,009 | 951 | 63,711 | (1,177) | (15,133) | (99,956) | 99,831 | 268 |
Net Earnings | 3,216 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (22) | (23) | 1 | ||||||
Dividends, Common Stock | (1,790) | 1,790 | |||||||
Dividends, Preferred Stock | (65) | (65) | |||||||
Treasury Stock, Shares, Acquired | (8,647) | ||||||||
Stock Repurchased During Period, Value | (751) | 751 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 18,021 | ||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,149 | (73) | 1,222 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 798 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (5) | 0 | (5) | |||||
ESOP Debt Impacts | 1 | 1 | 0 | ||||||
Noncontrolling Interest, Period Increase (Decrease) | 203 | 41 | 162 | ||||||
Common Stock, Shares, Outstanding | 2,501,580 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 54,443 | $ 4,009 | $ 946 | $ 63,679 | $ (1,178) | $ (15,156) | $ (99,480) | $ 101,170 | $ 453 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2018 | |
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, 2018 |
NEW ACCOUNTING PRONOUNCEMENTS A
NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | New Accounting Pronouncements and Policies and U.S. Tax Reform On July 1, 2018 , we adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This guidance outlines a single, comprehensive model of accounting for revenue from contracts with customers. We adopted the standard using the modified retrospective transition method, under which prior periods were not revised to reflect the impacts 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. Accordingly, the timing of revenue recognition is not materially impacted by the new standard. Trade promotions, consisting primarily of customer pricing allowances, in-store merchandising funds, advertising and other promotional activities, and consumer coupons, are offered through various programs to customers and consumers. The adoption of the new standard impacts the accrual timing for certain portions of our customer and consumer promotional spending, which resulted in a cumulative adjustment to Retained earnings of $534 , net of tax, on the date of adoption. The provisions of the new standard also impact the classification of certain payments to customers, moving an immaterial amount of such payments from expense to a deduction from net sales. Had this standard been effective and adopted during fiscal 2018, the impact would have been to reclassify $157 from Selling, General and Administrative expense (SG&A) to a reduction of Net sales for the six months ended December 31, 2017 and $309 for the year ended June 30, 2018 , with no impact to operating profit. This guidance included practical expedients, none of which are material to our Consolidated Financial Statements. This new guidance does not have any other material impacts on our Consolidated Financial Statements, including financial disclosures. On July 1, 2018, we adopted ASU 2017-07, "Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715)." This guidance requires an entity to disaggregate the current service cost component from the other components of net benefit costs in the face of the income statement. It requires the service cost component to be presented with other current compensation costs for the related employees in the operating section of the income statement, with other components of net benefit cost presented outside of income from operations. We adopted the standard retrospectively, using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans footnote as the basis to apply the retrospective presentation requirements. As such, prior periods’ results have been revised to report the other components of net defined benefit costs, previously reported in Cost of products sold and SG&A, in Other non-operating income, net. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash (Topic 230)." This guidance requires the Statement of Cash Flows to present changes in the total of cash, cash equivalents and restricted cash. Prior to the adoption of this ASU, the relevant accounting guidance did not require the Statement of Cash Flows to include changes in restricted cash. We adopted the standard retrospectively on July 1, 2018. We currently have no significant restricted cash balances. Historically, we had restricted cash balances and changes related to divestiture activity. Such balances were presented as Current assets held for sale on the balance sheets, with changes presented as Investing activities on the Statements of Cash Flow. In accordance with ASU 2016-08, such balances are now included in the beginning and ending balances of Cash, cash equivalents and restricted cash for all periods presented. In February 2018, the FASB issued ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)." This guidance permits companies to make an election to reclassify stranded tax effects from the recently enacted U.S. Tax Cuts and Jobs Act included in Accumulated other comprehensive income (AOCI) to Retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt this guidance in the quarter ended September 30, 2018. The reclassification from the adoption of this standard resulted in an increase of $326 to Retained earnings and a decrease of $326 to AOCI. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity transfers of Assets other than Inventory." The standard eliminates the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. We have adopted this standard effective July 1, 2018 on a modified retrospective basis. The adoption of ASU 2016-16 did not have a material impact on our Consolidated Financial Statements, including the cumulative effect adjustment required upon adoption. 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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”. The updated guidance provides an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. We plan to adopt the standard on July 1, 2019 under the optional transition method described above. We are currently in the process of implementing lease accounting software as well as 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 January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit and measure impairments based on those fair values and a residual measurement approach. It also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard no later than July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. 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. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "U.S. Tax Act"). The U.S. Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rates and implementing a hybrid territorial tax system. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018 , and 21% for subsequent fiscal years. However, the U.S. Tax Act eliminates the domestic manufacturing deduction and moves to a hybrid territorial system, which also largely eliminates the ability to credit certain foreign taxes that existed prior to enactment of the U.S. Tax Act. There are also certain transitional impacts of the U.S. Tax Act. As part of the transition to the new hybrid territorial tax system, the U.S. Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate caused us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21% . These transitional impacts resulted in a provisional net charge of $602 million for the fiscal year ended June 30, 2018 , and $628 million for the three months ended December 31, 2017 (the quarter of enactment), comprised of an estimated repatriation tax charge of $3.8 billion (comprised of U.S. repatriation taxes and foreign withholding taxes) and an estimated net deferred tax benefit of $3.2 billion . We have finalized our assessment of the transitional impacts of the U.S. Tax Act, which did not have a significant impact on tax expense during the six months ended December 31, 2018 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information Under U.S. GAAP, our Global Business Units (GBUs) are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of: • Beauty : Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); • Grooming : Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Appliances • Health Care : Oral Care (Toothbrushes, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); • Fabric & Home Care : Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care); and • Baby, Feminine & Family Care : Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper). Our business units are comprised of similar product categories. Nine business units individually accounted for 5% or more of consolidated net sales as follows: % of Net sales by Business Unit (1) Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 Fabric Care 22% 21% 22% 22% Baby Care 12% 13% 12% 13% Home Care 10% 10% 10% 10% Skin and Personal Care 10% 9% 10% 9% Hair Care 9% 10% 10% 10% Family Care 9% 8% 9% 8% Oral Care 9% 9% 8% 8% Shave Care 7% 8% 8% 8% Feminine Care 6% 6% 6% 6% All Other 6% 6% 5% 6% Total 100% 100% 100% 100% (1) % of Net sales by business unit excludes sales held in Corporate. Following is a summary of reportable segment results: Three Months Ended December 31 Six Months Ended December 31 Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss) Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss) Beauty 2018 $ 3,357 $ 964 $ 772 $ 6,646 $ 1,911 $ 1,531 2017 3,233 853 655 6,371 1,689 1,287 Grooming 2018 1,617 448 378 3,179 865 718 2017 1,776 531 423 3,353 945 752 Health Care 2018 2,220 669 520 4,065 1,109 852 2017 2,212 668 455 4,114 1,123 760 Fabric & Home Care 2018 5,557 1,134 860 11,045 2,278 1,737 2017 5,434 1,101 714 10,817 2,280 1,483 Baby, Feminine & Family Care 2018 4,558 930 707 8,948 1,832 1,399 2017 4,613 933 597 9,158 1,897 1,227 Corporate 2018 129 (229 ) (21 ) 245 (139 ) 190 2017 127 (53 ) (283 ) 235 (150 ) (78 ) Total Company 2018 $ 17,438 $ 3,916 $ 3,216 $ 34,128 $ 7,856 $ 6,427 2017 17,395 4,033 2,561 34,048 7,784 5,431 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Dec. 31, 2018 | |
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, 2018 $ 12,992 $ 19,820 $ 5,929 $ 1,865 $ 4,569 $ 45,175 Acquisitions and divestitures 132 — 1,955 6 — 2,093 Translation and other (116 ) (135 ) (36 ) (13 ) (36 ) (336 ) Goodwill at December 31, 2018 $ 13,008 $ 19,685 $ 7,848 $ 1,858 $ 4,533 $ 46,932 Goodwill from current year acquisitions primarily reflects the acquisition of the over-the-counter (OTC) healthcare business of Merck KGaA (Merck OTC) in the Health Care reportable segment (see Note 11), along with other minor acquisitions in the Beauty and Fabric & Home Care reportable segments. Goodwill increases due to acquisitions was partially offset by the divestiture of the Teva portion of the PGT business in the Health Care reportable segment and currency translation. Identifiable intangible assets at December 31, 2018 were comprised of: Gross Carrying Amount Accumulated Amortization Intangible assets with determinable lives $ 8,580 $ (5,251 ) Intangible assets with indefinite lives 22,618 — Total identifiable intangible assets $ 31,198 $ (5,251 ) 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 December 31, 2018 and 2017 was $81 and $75 , respectively. For the six months ended December 31, 2018 and 2017 , the amortization expense of intangible assets was $154 and $152 , respectively. Goodwill and indefinite lived intangible assets are not amortized, but are tested annually for impairment. 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. Our annual impairment testing for goodwill and indefinite lived intangible assets occurs during the 3 months ended December 31. 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 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. Both of these wholly acquired reporting units have fair value cushions that currently equal or exceed the underlying carrying values. However, the overall Shave Care goodwill cushion has been reduced in recent years, with the fair value in the current year being reduced to an amount that approximates the reporting unit's carrying value. The related Gillette indefinite-lived intangible asset cushion has also been reduced to below 5% . These reductions are due in large part to an increased competitive market environment in the U.S. and certain other markets, a deceleration of category growth caused by changing grooming habits and significant currency devaluations in a number of countries relative to the U.S. dollar, which collectively have resulted in reduced cash flow projections. The current year reduction in the fair value was primarily caused by further currency devaluations, along with competitive activities. As a result of these factors and the reduction in the fair values and related cushions, goodwill for the Shave Care reporting unit and the related indefinite-lived intangible asset are more susceptible to impairment risk. The most significant assumptions utilized in the determination of the estimated fair values of Shave Care reporting unit and the Gillette indefinite-lived intangible asset are the net sales and earnings growth rates (including residual growth rates) and discount rate. The residual growth rate represents the expected rate at which the reporting unit and Gillette brand are expected to grow beyond the shorter-term business planning period. The residual growth rate utilized in our fair value estimates is consistent with the reporting unit and brand operating plans, and approximates expected long term category market growth rates. The residual growth rate is dependent on overall market growth rates, the competitive environment, inflation, relative currency exchange rates and business activities that impact market share. As a result, the residual growth rate could be adversely impacted by a sustained deceleration in category growth, grooming habit changes, devaluation of currencies against the U.S. dollar or an increased competitive environment. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment, volatility in the equity and debt markets or other country specific factors, such as further devaluation of currencies against the U.S. dollar. Spot rates as of the fair value measurement date are utilized in our fair value estimates for cash flows outside the U.S. While management can and has implemented strategies to address these events, changes in operating plans or 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 would trigger future impairment charges of the reporting unit's goodwill and indefinite-lived intangibles. As of December 31, 2018 , the carrying values of Shave Care goodwill and the Gillette indefinite-lived intangible asset were $19.4 billion and $15.7 billion , respectively. The table below provides a sensitivity analysis for the Shave Care reporting unit and the Gillette indefinite lived intangible asset, utilizing reasonably possible changes in the assumptions for the shorter term and residual growth rates and the discount rate, to demonstrate the potential impacts to the estimated fair values. The table below provides, in isolation, the estimated fair value impacts related to a 25 basis point increase to discount rate or a 25 basis point decrease to our shorter-term and residual growth rates, both of which would result in impairment charges. Approximate Percent Change in Estimated Fair Value +25 bps Discount Rate -25 bps Growth Rate Shave Care goodwill reporting unit (5 )% (6 )% Gillette indefinite-lived intangible asset (5 )% (6 )% |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share are calculated using the treasury stock method on the basis of the weighted average number of common shares outstanding plus the dilutive effect of stock options and other stock-based awards and the assumed conversion of preferred stock. Net earnings per share were as follows: CONSOLIDATED AMOUNTS Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 Net earnings $ 3,216 $ 2,561 $ 6,427 $ 5,431 Less: Net earnings attributable to noncontrolling interests 22 66 34 83 Net earnings attributable to P&G (Diluted) 3,194 2,495 6,393 5,348 Preferred dividends, net of tax (65 ) (62 ) (131 ) (124 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 3,129 $ 2,433 $ 6,262 $ 5,224 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,499.7 2,533.9 2,497.8 2,542.2 Add: Effect of dilutive securities Conversion of preferred shares (1) 90.7 95.5 91.3 96.0 Impact of stock options and other unvested equity awards (2) 32.6 40.2 28.5 41.9 Diluted weighted average common shares outstanding 2,623.0 2,669.6 2,617.6 2,680.1 NET EARNINGS PER SHARE (3) Basic $ 1.25 $ 0.96 $ 2.51 $ 2.05 Diluted $ 1.22 $ 0.93 $ 2.44 $ 2.00 (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 23 million and 24 million for the three months ended December 31, 2018 and 2017 , and approximately 35 million and 22 million for the six months ended December 31, 2018 and 2017 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) |
SHARE-BASED COMPENSATION AND PO
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS | 6 Months Ended |
Dec. 31, 2018 | |
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 December 31 Six Months Ended December 31 2018 2017 2018 2017 Share-based compensation expense $ 79 $ 73 $ 181 $ 157 Net periodic benefit cost for pension benefits (1) 36 52 64 103 Net periodic benefit cost/(credit) for other retiree benefits (1) (42 ) (38 ) (83 ) (76 ) (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, 2018 |
RISK MANAGEMENT ACTIVITIES AND
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2018 | |
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 six months ended December 31, 2018 . 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 six months ended December 31, 2018 . The following table sets forth the Company’s financial assets as of December 31, 2018 and June 30, 2018 that are measured at fair value on a recurring basis during the period: Fair Value Asset December 31, 2018 June 30, 2018 Investments: U.S. government securities $ 5,177 $ 5,544 Corporate bond securities 3,244 3,737 Other investments 163 141 Total $ 8,584 $ 9,422 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 $1,601 as of December 31, 2018 and $2,003 as of June 30, 2018 . The amortized cost of U.S. government securities with maturities between one and five years was $3,657 as of December 31, 2018 and $3,659 as of June 30, 2018 . The amortized cost of Corporate bond securities with maturities of less than a year was $1,525 as of December 31, 2018 and $1,291 as of June 30, 2018 . The amortized cost of Corporate bond securities with maturities between one and five years was $1,760 as of December 31, 2018 and $2,503 as of June 30, 2018 . 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 Level 1 or Level 3 within the fair value hierarchy, or that used net asset value as a practical expedient. Fair values are generally estimated based upon quoted market prices for similar instruments. The fair value of long-term debt was $24,602 and $23,402 as of December 31, 2018 and June 30, 2018 , respectively. This includes the current portion of debt instruments ( $2,301 and $1,769 as of December 31, 2018 and June 30, 2018 , respectively). Certain long-term debt (debt tied to derivatives designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost, but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of December 31, 2018 and June 30, 2018 are as follows: Notional Amount Fair Value Asset Fair Value (Liability) December 31, 2018 June 30, 2018 December 31, 2018 June 30, 2018 December 31, 2018 June 30, 2018 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 4,550 $ 4,587 $ 118 $ 125 $ (28 ) $ (53 ) DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 1,855 $ 1,848 $ 21 $ 41 $ (59 ) $ (75 ) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 6,405 $ 6,435 $ 139 $ 166 $ (87 ) $ (128 ) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 7,025 $ 7,358 $ 49 $ 30 $ (29 ) $ (56 ) TOTAL DERIVATIVES AT FAIR VALUE $ 13,430 $ 13,793 $ 188 $ 196 $ (116 ) $ (184 ) 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 fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $4,623 and $4,639 as of December 31, 2018 and June 30, 2018 , respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $17,092 and $15,012 as of December 31, 2018 and June 30, 2018 , respectively. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: Amount of Gain/(Loss) Recognized in OCI on Derivatives Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) Foreign exchange contracts $ 23 $ (89 ) $ 19 $ (262 ) (1) For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $13 and $42 for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) excluded from effectiveness testing was $27 and $73 for the six months ended December 31, 2018 and 2017, respectively. (2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $228 and $(176) , for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) recognized in AOCI for such instruments was $241 and $(745) , for the six months ended December 31, 2018 and 2017, respectively. Amount of Gain/(Loss) Recognized in Earnings Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 42 $ (38 ) $ 18 $ (41 ) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ (5 ) $ (1 ) $ (7 ) $ (2 ) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Dec. 31, 2018 | |
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) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component: Changes in Accumulated Other Comprehensive Income/(Loss) by Component Hedges Investment Securities Pension and Other Retiree Benefits Financial Statement Translation Total AOCI Balance at June 30, 2018 $ (3,246 ) $ (173 ) $ (4,058 ) $ (7,272 ) $ (14,749 ) OCI before reclassifications (1) 199 54 149 (587 ) (185 ) Amounts reclassified from AOCI (2) — (1 ) 101 1 101 Net current period OCI 199 53 250 (586 ) (84 ) Reclassification to retained earnings in accordance with ASU 2018-02 (3) (18 ) — (308 ) — (326 ) Less: Other comprehensive income/(loss) attributable to non-controlling interests — — — (3 ) (3 ) Balance at December 31, 2018 $ (3,065 ) $ (120 ) $ (4,116 ) $ (7,855 ) $ (15,156 ) (1) Net of tax expense/(benefit) of $61 , $0 and $38 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 $32 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (3) Adjustment made to early adopt ASU 2018-02: "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," as discussed in Note 2. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statements of Earnings: • Investment securities: amounts reclassified from AOCI into Other non-operating income, net. • Pension and other retiree benefits: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs. • |
RESTRUCTURING PROGRAM
RESTRUCTURING PROGRAM | 6 Months Ended |
Dec. 31, 2018 | |
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 2017, the Company announced specific elements of a multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is expected to result in incremental enrollment reductions, along with further 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. For the three and six month periods ended December 31, 2018 , the Company incurred total restructuring charges of $177 and $314 , respectively. Of these charges incurred, $25 and $97 were recorded in SG&A and $143 and $207 were recorded in Cost of products sold, respectively. The remainder of these charges were recorded in Other non-operating income, net. The following table presents restructuring activity for the six months ended December 31, 2018: Charges Previously Reported (Three Months Ended September 30, 2018) Charges for the Three Months Ended December 31, 2018 Six Months Ended December 31, 2018 Reserve Balance June 30, 2018 Cash Spent Charges Against Assets Reserve Balance December 31, 2018 Separations $ 259 $ 53 $ 56 $ (115 ) $ — $ 253 Asset-related costs — 28 22 — (50 ) — Other costs 254 56 99 (180 ) — 229 Total $ 513 $137 $ 177 $ (295 ) $ (50 ) $ 482 Separation Costs Employee separation charges for the three and six month periods ended December 31, 2018 relate to severance packages for approximately 500 employees and 970 employees, respectively. The packages were predominantly voluntary and the amounts were 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. 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 asset removal and termination of contracts related to supply chain optimization. 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 December 31, 2018 Six Months Ended December 31, 2018 Beauty $ 17 $ 27 Grooming 25 31 Health Care 4 12 Fabric & Home Care 18 31 Baby, Feminine & Family Care 70 91 Corporate (1) 43 122 Total Company $177 $ 314 (1) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2018 | |
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 150 taxable jurisdictions and, at any point in time, has 40 – 50 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. While we do not expect material changes, it is possible that the amount of unrecognized benefit with respect to our uncertain tax positions could increase or decrease within the next 12 months. At this time, we are not able to make a reasonable estimate of the range of impact on the balance of uncertain tax positions or the impact on the effective tax rate related to these items. 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, 2018 |
ACQUISITION
ACQUISITION | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Merck Acquisition On November 30, 2018, we completed our acquisition of the over the counter (OTC) healthcare business of Merck KGaA (Merck OTC) for $3.7 billion (based on exchange rates at the time of closing) in an all-cash transaction. This business primarily sells OTC consumer healthcare products, mainly in Europe, Latin America and Asia markets. The results of Merck OTC, which are not material to the Company, are reported in our consolidated financial statements beginning December 1, 2018. Total sales for Merck OTC’s most recently completed fiscal year ended December 31, 2017 were approximately $1 billion . The following table presents the preliminary allocation of purchase price related to the Merck OTC business as of the date of acquisition. The preliminary allocation of the purchase price is based on the best estimates of management and is subject to revision based on final determination of fair values of the assets and liabilities acquired, which will be completed as we complete our analysis of the underlying assets and acquired liabilities, such as pensions, litigation cases, environmental issues, and tax positions. Amounts in Millions November 30, 2018 Current assets $ 393 Property, plant and equipment 122 Intangible assets 2,111 Goodwill 2,010 Other non-current assets 143 Total Assets Acquired $ 4,779 Current liabilities $ 233 Deferred income taxes 661 Non-current liabilities 60 Total Liabilities Acquired $ 954 Noncontrolling Interest (1) $ 169 Net Assets Acquired $ 3,656 (1) Represents a 48% minority ownership interest in the Merck India company. The acquisition resulted in $2.0 billion in goodwill, of which approximately $180 million is expected to be deductible for tax purposes. All of this goodwill was allocated to the Health Care Segment. The goodwill is primarily attributable to the assembled workforce and synergies we expect to generate by combining the Merck OTC business with the Company’s existing personal health care business. We have preliminarily estimated the fair value of Merck OTC’s identifiable intangible assets as $2.1 billion . The preliminary allocation of identifiable intangible assets and their average useful lives is as follows: Amounts in Millions Estimated Fair Value Avg Remaining Intangible Assets with Determinable Lives Brands $ 701 14 Patents and technology 118 7 Customer relationships 346 20 Total $ 1,165 15 Intangible Assets with Indefinite Lives Brands 946 Total Intangible Assets $ 2,111 The majority of the intangible valuation relates to brand intangibles. Our preliminary assessment as to brand intangibles that have an indefinite life and those that have a definite life was based on a number of factors, including competitive environment, market share, brand history, product life cycles, operating plan and the macroeconomic environment of the countries in which the brands are sold. The indefinite-lived brand intangibles include Neurobion and Dolo Neurobion. The definite-lived brand intangibles primarily include regional or local brands. The definite-lived brand intangibles have estimated lives ranging from 10 to 20 years. The technology intangibles are related to R&D and manufacturing know-how; these intangibles have a 7 year estimated life. The customer relationships intangibles have a 20 year estimated life and reflect the |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Following is a summary of reportable segment results: Three Months Ended December 31 Six Months Ended December 31 Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss) Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss) Beauty 2018 $ 3,357 $ 964 $ 772 $ 6,646 $ 1,911 $ 1,531 2017 3,233 853 655 6,371 1,689 1,287 Grooming 2018 1,617 448 378 3,179 865 718 2017 1,776 531 423 3,353 945 752 Health Care 2018 2,220 669 520 4,065 1,109 852 2017 2,212 668 455 4,114 1,123 760 Fabric & Home Care 2018 5,557 1,134 860 11,045 2,278 1,737 2017 5,434 1,101 714 10,817 2,280 1,483 Baby, Feminine & Family Care 2018 4,558 930 707 8,948 1,832 1,399 2017 4,613 933 597 9,158 1,897 1,227 Corporate 2018 129 (229 ) (21 ) 245 (139 ) 190 2017 127 (53 ) (283 ) 235 (150 ) (78 ) Total Company 2018 $ 17,438 $ 3,916 $ 3,216 $ 34,128 $ 7,856 $ 6,427 2017 17,395 4,033 2,561 34,048 7,784 5,431 Nine business units individually accounted for 5% or more of consolidated net sales as follows: % of Net sales by Business Unit (1) Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 Fabric Care 22% 21% 22% 22% Baby Care 12% 13% 12% 13% Home Care 10% 10% 10% 10% Skin and Personal Care 10% 9% 10% 9% Hair Care 9% 10% 10% 10% Family Care 9% 8% 9% 8% Oral Care 9% 9% 8% 8% Shave Care 7% 8% 8% 8% Feminine Care 6% 6% 6% 6% All Other 6% 6% 5% 6% Total 100% 100% 100% 100% (1) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
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, 2018 $ 12,992 $ 19,820 $ 5,929 $ 1,865 $ 4,569 $ 45,175 Acquisitions and divestitures 132 — 1,955 6 — 2,093 Translation and other (116 ) (135 ) (36 ) (13 ) (36 ) (336 ) Goodwill at December 31, 2018 $ 13,008 $ 19,685 $ 7,848 $ 1,858 $ 4,533 $ 46,932 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Identifiable intangible assets at December 31, 2018 were comprised of: Gross Carrying Amount Accumulated Amortization Intangible assets with determinable lives $ 8,580 $ (5,251 ) Intangible assets with indefinite lives 22,618 — Total identifiable intangible assets $ 31,198 $ (5,251 ) |
Schedule of Potential Impacts to Estimated Fair Values [Table Text Block] | The table below provides, in isolation, the estimated fair value impacts related to a 25 basis point increase to discount rate or a 25 basis point decrease to our shorter-term and residual growth rates, both of which would result in impairment charges. Approximate Percent Change in Estimated Fair Value +25 bps Discount Rate -25 bps Growth Rate Shave Care goodwill reporting unit (5 )% (6 )% Gillette indefinite-lived intangible asset (5 )% (6 )% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net earnings per share were as follows: CONSOLIDATED AMOUNTS Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 Net earnings $ 3,216 $ 2,561 $ 6,427 $ 5,431 Less: Net earnings attributable to noncontrolling interests 22 66 34 83 Net earnings attributable to P&G (Diluted) 3,194 2,495 6,393 5,348 Preferred dividends, net of tax (65 ) (62 ) (131 ) (124 ) Net earnings attributable to P&G available to common shareholders (Basic) $ 3,129 $ 2,433 $ 6,262 $ 5,224 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,499.7 2,533.9 2,497.8 2,542.2 Add: Effect of dilutive securities Conversion of preferred shares (1) 90.7 95.5 91.3 96.0 Impact of stock options and other unvested equity awards (2) 32.6 40.2 28.5 41.9 Diluted weighted average common shares outstanding 2,623.0 2,669.6 2,617.6 2,680.1 NET EARNINGS PER SHARE (3) Basic $ 1.25 $ 0.96 $ 2.51 $ 2.05 Diluted $ 1.22 $ 0.93 $ 2.44 $ 2.00 (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 23 million and 24 million for the three months ended December 31, 2018 and 2017 , and approximately 35 million and 22 million for the six months ended December 31, 2018 and 2017 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) |
SHARE-BASED COMPENSATION AND _2
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
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 December 31 Six Months Ended December 31 2018 2017 2018 2017 Share-based compensation expense $ 79 $ 73 $ 181 $ 157 Net periodic benefit cost for pension benefits (1) 36 52 64 103 Net periodic benefit cost/(credit) for other retiree benefits (1) (42 ) (38 ) (83 ) (76 ) (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, 2018 |
RISK MANAGEMENT ACTIVITIES AN_2
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and June 30, 2018 that are measured at fair value on a recurring basis during the period: Fair Value Asset December 31, 2018 June 30, 2018 Investments: U.S. government securities $ 5,177 $ 5,544 Corporate bond securities 3,244 3,737 Other investments 163 141 Total $ 8,584 $ 9,422 |
Schedule of Derivative Instruments [Table Text Block] | The notional amounts and fair values of financial instruments used in hedging transactions as of December 31, 2018 and June 30, 2018 are as follows: Notional Amount Fair Value Asset Fair Value (Liability) December 31, 2018 June 30, 2018 December 31, 2018 June 30, 2018 December 31, 2018 June 30, 2018 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 4,550 $ 4,587 $ 118 $ 125 $ (28 ) $ (53 ) DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 1,855 $ 1,848 $ 21 $ 41 $ (59 ) $ (75 ) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 6,405 $ 6,435 $ 139 $ 166 $ (87 ) $ (128 ) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 7,025 $ 7,358 $ 49 $ 30 $ (29 ) $ (56 ) TOTAL DERIVATIVES AT FAIR VALUE $ 13,430 $ 13,793 $ 188 $ 196 $ (116 ) $ (184 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: Amount of Gain/(Loss) Recognized in OCI on Derivatives Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) Foreign exchange contracts $ 23 $ (89 ) $ 19 $ (262 ) (1) For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $13 and $42 for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) excluded from effectiveness testing was $27 and $73 for the six months ended December 31, 2018 and 2017, respectively. (2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $228 and $(176) , for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) recognized in AOCI for such instruments was $241 and $(745) , for the six months ended December 31, 2018 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Amount of Gain/(Loss) Recognized in Earnings Three Months Ended December 31 Six Months Ended December 31 2018 2017 2018 2017 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 42 $ (38 ) $ 18 $ (41 ) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ (5 ) $ (1 ) $ (7 ) $ (2 ) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
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) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component: Changes in Accumulated Other Comprehensive Income/(Loss) by Component Hedges Investment Securities Pension and Other Retiree Benefits Financial Statement Translation Total AOCI Balance at June 30, 2018 $ (3,246 ) $ (173 ) $ (4,058 ) $ (7,272 ) $ (14,749 ) OCI before reclassifications (1) 199 54 149 (587 ) (185 ) Amounts reclassified from AOCI (2) — (1 ) 101 1 101 Net current period OCI 199 53 250 (586 ) (84 ) Reclassification to retained earnings in accordance with ASU 2018-02 (3) (18 ) — (308 ) — (326 ) Less: Other comprehensive income/(loss) attributable to non-controlling interests — — — (3 ) (3 ) Balance at December 31, 2018 $ (3,065 ) $ (120 ) $ (4,116 ) $ (7,855 ) $ (15,156 ) (1) Net of tax expense/(benefit) of $61 , $0 and $38 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 $32 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively. (3) |
RESTRUCTURING PROGRAM (Tables)
RESTRUCTURING PROGRAM (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents restructuring activity for the six months ended December 31, 2018: Charges Previously Reported (Three Months Ended September 30, 2018) Charges for the Three Months Ended December 31, 2018 Six Months Ended December 31, 2018 Reserve Balance June 30, 2018 Cash Spent Charges Against Assets Reserve Balance December 31, 2018 Separations $ 259 $ 53 $ 56 $ (115 ) $ — $ 253 Asset-related costs — 28 22 — (50 ) — Other costs 254 56 99 (180 ) — 229 Total $ 513 $137 $ 177 $ (295 ) $ (50 ) $ 482 |
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 December 31, 2018 Six Months Ended December 31, 2018 Beauty $ 17 $ 27 Grooming 25 31 Health Care 4 12 Fabric & Home Care 18 31 Baby, Feminine & Family Care 70 91 Corporate (1) 43 122 Total Company $177 $ 314 (1) |
ACQUISITION - ALLOCATION OF PUR
ACQUISITION - ALLOCATION OF PURCHASE PRICE (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price is based on the best estimates of management and is subject to revision based on final determination of fair values of the assets and liabilities acquired, which will be completed as we complete our analysis of the underlying assets and acquired liabilities, such as pensions, litigation cases, environmental issues, and tax positions. Amounts in Millions November 30, 2018 Current assets $ 393 Property, plant and equipment 122 Intangible assets 2,111 Goodwill 2,010 Other non-current assets 143 Total Assets Acquired $ 4,779 Current liabilities $ 233 Deferred income taxes 661 Non-current liabilities 60 Total Liabilities Acquired $ 954 Noncontrolling Interest (1) $ 169 Net Assets Acquired $ 3,656 (1) Represents a 48% |
ACQUISITION - FAIR VALUE OF INT
ACQUISITION - FAIR VALUE OF INTANGIBLES (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The preliminary allocation of identifiable intangible assets and their average useful lives is as follows: Amounts in Millions Estimated Fair Value Avg Remaining Intangible Assets with Determinable Lives Brands $ 701 14 Patents and technology 118 7 Customer relationships 346 20 Total $ 1,165 15 Intangible Assets with Indefinite Lives Brands 946 Total Intangible Assets $ 2,111 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jun. 30, 2018 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (553) | |
Payments to Customers [Member] | Selling, General and Administrative Expenses [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 157 | $ 309 |
Customer and Consumer Promotional Spending [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 534 | |
Reclassification from AOCI to Retained Earnings for Tax Effects [Domain] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 326 | |
Reclassification from AOCI to Retained Earnings for Tax Effects [Domain] | Other Comprehensive Income (Loss) | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (326) |
NEW ACCOUNTING PRONOUNCEMENTS_2
NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES - U.S. TAX REFORM (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Income Tax Expense (Benefit) | $ 700 | $ 1,472 | $ 1,429 | $ 2,353 | |||
U.S. Tax Cuts and Jobs Act, Effective 2018 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.00% | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Base Rate, Percent | 21.00% | ||||||
Income Tax Expense (Benefit) | $ 628 | $ 602 | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 3,800 | ||||||
Deferred Federal Income Tax Expense (Benefit) | $ 3,200 | ||||||
U.S. Tax Cuts and Jobs Act, Effective 2018 | Scenario, Forecast | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
SEGMENT INFORMATION SEGMENT INF
SEGMENT INFORMATION SEGMENT INFORMATION - SALES (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 100.00% | 100.00% | 100.00% | 100.00% |
Fabric Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 22.00% | 21.00% | 22.00% | 22.00% |
Baby Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 12.00% | 13.00% | 12.00% | 13.00% |
Hair Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 9.00% | 10.00% | 10.00% | 10.00% |
Home Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 10.00% | 10.00% | 10.00% | 10.00% |
Skin and Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 10.00% | 9.00% | 10.00% | 9.00% |
Family Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 9.00% | 8.00% | 9.00% | 8.00% |
Shave Care | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 7.00% | 8.00% | 8.00% | 8.00% |
Oral Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 9.00% | 9.00% | 8.00% | 8.00% |
Feminine Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 6.00% | 6.00% | 6.00% | 6.00% |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | 6.00% | 6.00% | 5.00% | 6.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 17,438 | $ 17,395 | $ 34,128 | $ 34,048 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,916 | 4,033 | 7,856 | 7,784 |
Net Earnings/(Loss) from Continuing Operations | 3,216 | 2,561 | 6,427 | 5,431 |
Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 3,357 | 3,233 | 6,646 | 6,371 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 964 | 853 | 1,911 | 1,689 |
Net Earnings/(Loss) from Continuing Operations | 772 | 655 | 1,531 | 1,287 |
Grooming | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,617 | 1,776 | 3,179 | 3,353 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 448 | 531 | 865 | 945 |
Net Earnings/(Loss) from Continuing Operations | 378 | 423 | 718 | 752 |
Health Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,220 | 2,212 | 4,065 | 4,114 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 669 | 668 | 1,109 | 1,123 |
Net Earnings/(Loss) from Continuing Operations | 520 | 455 | 852 | 760 |
Fabric and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,557 | 5,434 | 11,045 | 10,817 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 1,134 | 1,101 | 2,278 | 2,280 |
Net Earnings/(Loss) from Continuing Operations | 860 | 714 | 1,737 | 1,483 |
Baby, Feminine & Family Care | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 4,558 | 4,613 | 8,948 | 9,158 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | 930 | 933 | 1,832 | 1,897 |
Net Earnings/(Loss) from Continuing Operations | 707 | 597 | 1,399 | 1,227 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 129 | 127 | 245 | 235 |
Earnings/(Loss) from Continuing Operations Before Income Taxes | (229) | (53) | (139) | (150) |
Net Earnings/(Loss) from Continuing Operations | $ (21) | $ (283) | $ 190 | $ (78) |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - CHANGE IN THE NET CARRYING AMOUNT OF GOODWILL BY GLOBAL BUSINESS UNIT (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | $ 45,175 |
Goodwill, Acquisitions and Divestitures | 2,093 |
Goodwill, Translation and Other | (336) |
Goodwill at December 31, 2018 | 46,932 |
Beauty | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | 12,992 |
Goodwill, Acquisitions and Divestitures | 132 |
Goodwill, Translation and Other | (116) |
Goodwill at December 31, 2018 | 13,008 |
Grooming | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | 19,820 |
Goodwill, Acquisitions and Divestitures | 0 |
Goodwill, Translation and Other | (135) |
Goodwill at December 31, 2018 | 19,685 |
Health Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | 5,929 |
Goodwill, Acquisitions and Divestitures | 1,955 |
Goodwill, Translation and Other | (36) |
Goodwill at December 31, 2018 | 7,848 |
Fabric & Home Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | 1,865 |
Goodwill, Acquisitions and Divestitures | 6 |
Goodwill, Translation and Other | (13) |
Goodwill at December 31, 2018 | 1,858 |
Baby, Feminine & Family Care | |
Goodwill [Roll Forward] | |
Goodwill at June 30, 2018 | 4,569 |
Goodwill, Acquisitions and Divestitures | 0 |
Goodwill, Translation and Other | (36) |
Goodwill at December 31, 2018 | $ 4,533 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - IDENTIFIABLE INTANGIBLE ASSETS (Details) $ in Millions | Dec. 31, 2018USD ($) |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 31,198 |
Accumulated Amortization | (5,251) |
Intangible Assets with Indefinite Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 22,618 |
Accumulated Amortization | 0 |
Intangible Assets with Determinable Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 8,580 |
Accumulated Amortization | $ (5,251) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Other Significant Noncash Transactions [Line Items] | |||||
Amortization of Intangible Assets | $ 81 | $ 75 | $ 154 | $ 152 | |
Goodwill | 46,932 | 46,932 | $ 45,175 | ||
Shave Care | |||||
Other Significant Noncash Transactions [Line Items] | |||||
Goodwill | $ 19,400 | $ 19,400 | |||
Intangible Assets with Indefinite Lives | Gillette | |||||
Other Significant Noncash Transactions [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | 5.00% | |||
Intangible Assets, Net (Including Goodwill) | $ 15,700 | $ 15,700 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION OTHER (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Significant Noncash Transactions [Line Items] | ||||
Amortization of Intangible Assets | $ 81 | $ 75 | $ 154 | $ 152 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - FAIR VALUE SENSITIVITY (Details) | Dec. 31, 2018 |
25 bps Increase Discount Rate [Member] | Intangible Assets with Indefinite Lives | Gillette | |
SCHEDULE OF POTENTIAL IMPACTS TO ESTIMATED FAIR VALUES [Line Items] | |
Percent Change in Estimated Fair Value | (5.00%) |
25 bps Decrease Long-Term Growth [Member] | Intangible Assets with Indefinite Lives | Gillette | |
SCHEDULE OF POTENTIAL IMPACTS TO ESTIMATED FAIR VALUES [Line Items] | |
Percent Change in Estimated Fair Value | (6.00%) |
Goodwill | 25 bps Increase Discount Rate [Member] | Shave Care | |
SCHEDULE OF POTENTIAL IMPACTS TO ESTIMATED FAIR VALUES [Line Items] | |
Percent Change in Estimated Fair Value | (5.00%) |
Goodwill | 25 bps Decrease Long-Term Growth [Member] | Shave Care | |
SCHEDULE OF POTENTIAL IMPACTS TO ESTIMATED FAIR VALUES [Line Items] | |
Percent Change in Estimated Fair Value | (6.00%) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share Reconciliation [Abstract] | |||||
Net Earnings | $ 3,216 | $ 2,561 | $ 6,427 | $ 5,431 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | 66 | 34 | 83 | |
Net Earnings/(Loss) Attributable to P&G (Diluted) | 3,194 | 2,495 | 6,393 | 5,348 | |
Dividends, Preferred Stock | (65) | (62) | (131) | (124) | |
Net Earnings/(Loss) Attributable to P&G Available to Common Shareholders (Basic) | $ 3,129 | $ 2,433 | $ 6,262 | $ 5,224 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||
Basic Weighted Average Common Shares Outstanding | 2,499.7 | 2,533.9 | 2,497.8 | 2,542.2 | |
Effect of Dilutive Securities | |||||
Conversion of Preferred Shares | [1] | 90.7 | 95.5 | 91.3 | 96 |
Exercise of Stock Options and Other Unvested Equity Awards | [2] | 32.6 | 40.2 | 28.5 | 41.9 |
Diluted Weighted Average Common Shares Outstanding | 2,623 | 2,669.6 | 2,617.6 | 2,680.1 | |
Basic Net Earnings/(Loss) Per Common Share | [3],[4] | $ 1.25 | $ 0.96 | $ 2.51 | $ 2.05 |
Diluted Net Earnings/(Loss) Per Common Share | [3],[4] | $ 1.22 | $ 0.93 | $ 2.44 | $ 2 |
[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 23 million and 24 million for the three months ended December 31, 2018 and 2017 , and approximately 35 million and 22 million for the six months ended December 31, 2018 and 2017 | ||||
[3] | Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble. | ||||
[4] | 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 | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
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] | 23 | 24 | 35 | 22 |
[1] | Weighted average outstanding stock options of approximately 23 million and 24 million for the three months ended December 31, 2018 and 2017 , and approximately 35 million and 22 million for the six months ended December 31, 2018 and 2017 |
SHARE-BASED COMPENSATION AND _3
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||
Allocated Share-based Compensation Expense | $ 79 | $ 73 | $ 181 | $ 157 | |
Pension Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | [1] | 36 | 52 | 64 | 103 |
Other Postretirement Benefit Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | [1] | $ (42) | $ (38) | $ (83) | $ (76) |
[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, 2018 |
RISK MANAGEMENT ACTIVITIES AN_3
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jun. 30, 2018 |
Fair Value Asset | $ 8,584 | $ 9,422 |
U.S. Government Securities | ||
Fair Value Asset | 5,177 | 5,544 |
Corporate Bond Securities | ||
Fair Value Asset | 3,244 | 3,737 |
Other Investments | ||
Fair Value Asset | $ 163 | $ 141 |
RISK MANAGEMENT ACTIVITIES AN_4
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 24,602 | $ 23,402 |
Long Term Debt, Current Maturities Measured at Fair Value | 2,301 | 1,769 |
U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | 1,601 | 2,003 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 3,657 | 3,659 |
Corporate Bond Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | 1,525 | 1,291 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 1,760 | 2,503 |
Derivatives in Fair Value Hedging Relationships | Underlying, Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | 4,623 | 4,639 |
Derivatives in Net Investment Hedging Relationships | Underlying, Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 17,092 | $ 15,012 |
RISK MANAGEMENT ACTIVITIES AN_5
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - DERIVATIVE NOTIONAL AMOUNTS AND FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jun. 30, 2018 |
Derivative [Line Items] | ||
Notional Amount | $ 13,430 | $ 13,793 |
Derivative Asset | 188 | 196 |
Derivative Liability | (116) | (184) |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional Amount | 7,025 | 7,358 |
Derivative Asset | 49 | 30 |
Derivative Liability | 29 | 56 |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 4,550 | 4,587 |
Derivative Asset | 118 | 125 |
Derivative Liability | 28 | 53 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Notional Amount | 1,855 | 1,848 |
Derivative Asset | 21 | 41 |
Derivative Liability | 59 | 75 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 6,405 | 6,435 |
Derivative Asset | 139 | 166 |
Derivative Liability | $ 87 | $ 128 |
RISK MANAGEMENT ACTIVITIES AN_6
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (EFFECTIVE PORTION) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Foreign Exchange Contract | Derivatives in Net Investment Hedging Relationships | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | [1],[2] | $ 23 | $ (89) | $ 19 | $ (262) |
[1] | For the derivatives in net investment hedging relationships, the amount of gain/(loss) excluded from effectiveness testing, which was recognized in earnings, was $13 and $42 for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) excluded from effectiveness testing was $27 and $73 for the six months ended December 31, 2018 | ||||
[2] | In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $228 and $(176) , for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) recognized in AOCI for such instruments was $241 and $(745) , for the six months ended December 31, 2018 |
RISK MANAGEMENT ACTIVITIES AN_7
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Not Designated as Hedging Instrument | Foreign Currency Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | $ (5) | $ (1) | $ (7) | $ (2) |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | $ 42 | $ (38) | $ 18 | $ (41) |
RISK MANAGEMENT ACTIVITIES AN_8
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - AMOUNT OF GAINS AND LOSSES ON OUTSTANDING DERIVATIVES - ADDITIONAL INFORMATION (Details) (Details) - Derivatives in Net Investment Hedging Relationships - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 13 | $ 42 | $ 27 | $ 73 |
Accumulated Other Comprehensive Income, Gain (Loss) | $ 228 | $ (176) | $ 241 | $ (745) |
RISK MANAGEMENT ACTIVITIES AN_9
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS - ADDITIONAL INFORMATION (Details) (Details) - Underlying, Other - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jun. 30, 2018 | |
Derivatives in Fair Value Hedging Relationships | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 4,623 | $ 4,639 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 17,092 | $ 15,012 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - CHANGES IN AOCI AND RECLASSIFICATION OUT OF AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | ||
Accumulated Other Comprehensive Income/(Loss) | $ (15,156) | $ (15,156) | $ (14,749) | |||
OCI before Reclassifications | (185) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 101 | |||||
Other Comprehensive Income (Loss), Net of Tax | (22) | $ 121 | (84) | $ 461 | ||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | (326) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (3) | |||||
Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income/(Loss) | (3,065) | (3,065) | (3,246) | |||
OCI before Reclassifications | [1] | 199 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | 199 | |||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | (18) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income/(Loss) | (120) | (120) | (173) | |||
OCI before Reclassifications | [1] | 54 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | (1) | ||||
Other Comprehensive Income (Loss), Net of Tax | 53 | |||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||||||
Accumulated Other Comprehensive Income/(Loss) | (4,116) | (4,116) | (4,058) | |||
OCI before Reclassifications | [1] | 149 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | 101 | ||||
Other Comprehensive Income (Loss), Net of Tax | 250 | |||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | (308) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income/(Loss) | $ (7,855) | (7,855) | $ (7,272) | |||
OCI before Reclassifications | (587) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | |||||
Other Comprehensive Income (Loss), Net of Tax | (586) | |||||
Adoption of New Accounting Standard_Reclass from AOCI to Retained Earnings | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ (3) | |||||
[1] | Net of tax expense/(benefit) of $61 , $0 and $38 | |||||
[2] | Net of tax expense/(benefit) of $0 , $0 and $32 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX EXPENSE (BENEFIT) (Details) $ in Millions | 6 Months Ended | |
Dec. 31, 2018USD ($) | ||
Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | $ 61 | [1] |
Reclassification from AOCI, Current Period, Tax | 0 | [2] |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | [1] |
Reclassification from AOCI, Current Period, Tax | 0 | [2] |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 38 | [1] |
Reclassification from AOCI, Current Period, Tax | $ 32 | [2] |
[1] | Net of tax expense/(benefit) of $61 , $0 and $38 | |
[2] | Net of tax expense/(benefit) of $0 , $0 and $32 |
RESTRUCTURING PROGRAM - ADDITIO
RESTRUCTURING PROGRAM - ADDITIONAL INFORMATION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018USD ($)employee | Sep. 30, 2018USD ($)employee | Dec. 31, 2018USD ($) | |
Restructuring Charges | $ 177 | $ 137 | $ 314 |
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 | 97 | |
Cost of Products Sold | |||
Restructuring Charges | 143 | $ 207 | |
Separations | |||
Restructuring Charges | $ 56 | $ 53 | |
Restructuring and Related Cost, Number of Severance Packages Executed | employee | 970 | 500 |
RESTRUCTURING PROGRAM - RESTRUC
RESTRUCTURING PROGRAM - RESTRUCTURING RESERVE BY TYPE OF COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | $ 513 | $ 513 | |
Restructuring Charges | $ 177 | 137 | 314 |
Cash Spent | (295) | ||
Charges Against Assets | (50) | ||
Reserve Balance December 31, 2018 | 482 | 482 | |
Separations | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 259 | 259 | |
Restructuring Charges | 56 | 53 | |
Cash Spent | (115) | ||
Charges Against Assets | 0 | ||
Reserve Balance December 31, 2018 | 253 | 253 | |
Asset-related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 0 | 0 | |
Restructuring Charges | 22 | 28 | |
Cash Spent | 0 | ||
Charges Against Assets | (50) | ||
Reserve Balance December 31, 2018 | 0 | 0 | |
Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 254 | 254 | |
Restructuring Charges | 99 | $ 56 | |
Cash Spent | (180) | ||
Charges Against Assets | 0 | ||
Reserve Balance December 31, 2018 | $ 229 | $ 229 |
RESTRUCTURING PROGRAM - RESTR_2
RESTRUCTURING PROGRAM - RESTRUCTURING COSTS PER SEGMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 177 | $ 137 | $ 314 | |
Beauty | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 17 | 27 | ||
Grooming | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 25 | 31 | ||
Health Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 4 | 12 | ||
Fabric & Home Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 18 | 31 | ||
Baby, Feminine & Family Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 70 | 91 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 43 | $ 122 | [1] | |
[1] | Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Details) | 6 Months Ended |
Dec. 31, 2018audittaxable_jurisdiction | |
Loss Contingencies [Line Items] | |
Number of Taxable Jurisdictions | taxable_jurisdiction | 150 |
Minimum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 40 |
Maximum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 50 |
ACQUISITION - ALLOCATION OF P_2
ACQUISITION - ALLOCATION OF PURCHASE PRICE (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Nov. 30, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 46,932 | $ 45,175 | ||
PHC-MERCK ACQUISITION [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 393 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 122 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,111 | |||
Goodwill | 2,010 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 143 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,779 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 233 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 661 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 60 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 954 | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | [1] | 169 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 3,656 | |||
[1] | Represents a 48% |
ACQUISITION ACQUISITION - FAIR
ACQUISITION ACQUISITION - FAIR VALUE OF INTANGIBLES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2018 | Nov. 30, 2018 | |
Other Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
PHC-MERCK ACQUISITION [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,165 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,111 | |
PHC-MERCK ACQUISITION [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 701 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
PHC-MERCK ACQUISITION [Member] | Patents and Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 118 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |
PHC-MERCK ACQUISITION [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 346 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |
PHC-MERCK ACQUISITION [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 946 |
ACQUISITION - ADDITIONAL INFORM
ACQUISITION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 46,932 | $ 46,932 | $ 46,932 | $ 45,175 | |||
Net Sales | $ 17,438 | $ 17,395 | $ 34,128 | $ 34,048 | |||
PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 3,700 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 48.00% | ||||||
Goodwill | $ 2,010 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 180 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,111 | ||||||
Net Sales | $ 1,000 | ||||||
Trade Names [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | ||||||
Trade Names [Member] | Minimum | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||
Trade Names [Member] | Maximum | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||||||
Patents and Developed Technology [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||
Customer Relationships [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |