Colgate-Palmolive Company

2011 Annual Report

Search Results: Page 1 of 18

No Results Found

Reconciliation Of Non-GAAP Financial Measures

The following is provided to supplement certain Non-GAAP financial measures discussed in the message from the CEO and the financial highlights section of this report, both as reported (on a GAAP basis) and excluding the impact of certain items (Non-GAAP), as explained below. Management believes these Non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. The Company uses these financial measures internally in its budgeting process and as a factor in determining compensation. While the Company believes that these Non-GAAP financial measures are useful in evaluating the Company's business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these Non-GAAP financial measures may not be the same as similar measures presented by other companies.

(Dollars in Millions Except Per Share Amounts)		2011					2010
		Gross Profit Margin	Operating Profit	Net Income	Diluted EPS		Gross Profit Margin	Operating Profit	Net Income	Diluted EPS
As Reported (GAAP)		57.3%	$3,841	$2,431	$4.94		59.1%	$3,489	$2,203	$4.31
Business Realignment Initiatives ⁽¹⁾		0.3%	190	147	0.30		—	—	—	—
Mexico Land Sale ⁽²⁾		—	13	9	0.02		—	—	—	—
Gain on Sale of Non-Core Product Lines ⁽³⁾		—	(207)	(135)	(0.27)		—	(50)	(30)	(0.06)
French Competition Law Matter ⁽⁴⁾		—	21	21	0.04		—	—	—	—
Venezuela Hyperinflationary Charge ⁽⁵⁾		—	—	—	—		—	271	271	0.53
Termination Benefits ⁽⁶⁾		—	—	—	—		—	86	61	0.12
Tax Initiatives ⁽⁷⁾		—	—	—	—		—	—	(31)	(0.06)
Excluding Items (Non-GAAP)		57.6%	$3,858	$2,473	$5.03		59.1%	$3,796	$2,474	$4.84

		2008					2007
		Gross Profit Margin	Operating Profit	Net Income	Diluted EPS		Gross Profit Margin	Operating Profit	Net Income	Diluted EPS
As Reported (GAAP)		56.3%	$3,101	$1,957	$3.66		56.2%	$2,720	$1,737	$3.20
Restructuring Charges ⁽⁸⁾		0.4%	164	113	0.21		1.1%	259	184	0.34
Gain on Sale of Non-Core Product Lines ⁽³⁾		—	—	—	—		—	(49)	(29)	(0.05)
Hill's Voluntary Product Recall ⁽⁹⁾		—	—	—	—		—	14	8	0.01
Tax Adjustments ⁽¹⁰⁾		—	—	—	—		—	—	(74)	(0.14)
Pension Settlement Charges ⁽¹¹⁾		—	—	—	—		—	15	10	0.02
Excluding Items (Non-GAAP)		56.7%	$3,265	$2,070	$3.87		57.3%	$2,959	$1,836	$3.38

⁽¹⁾

Represents costs associated with various global business realignment and other cost-saving initiatives.

⁽²⁾

Represents costs associated with a sale of land in Mexico.

⁽³⁾

In 2011, the Company recorded a $135 million aftertax gain on sale of a non-core product line in Colombia. In 2010, the Company recorded a $30 million aftertax gain on sale of non-core product lines in Latin America. In 2007, the Company recorded a $29 million aftertax gain on sale of a non-core product line in Latin America.

⁽⁴⁾

In 2011, the Company recorded a $21 million aftertax charge associated with a competition law matter in France related to a divested detergent business.

⁽⁵⁾

In 2010, the Company recorded a $271 million one-time charge related to the transition to hyperinflationary accounting in Venezuela as of January 1, 2010.

⁽⁶⁾

In 2010, the Company recorded a $61 million aftertax charge for termination benefits relating to ongoing overhead reduction initiatives.

⁽⁷⁾

In 2010, the Company recorded a $31 million benefit related to the reorganization of an overseas subsidiary.

⁽⁸⁾

The restructuring charges relate to the restructuring program that began in the fourth quarter of 2004 and was finalized as of the end of 2008 (the 2004 Restructuring Program). These restructuring charges include separation-related costs, incremental depreciation and asset write-downs, and other costs related to the implementation of the 2004 Restructuring Program.

⁽⁹⁾

In 2007, the Company recorded an $8 million aftertax charge related to the limited voluntary product recall of certain Hill's feline products.

⁽¹⁰⁾

In 2007, the Company recorded $74 million of net tax adjustments consisting of the reduction of a tax loss carryforward valuation allowance in Brazil, partially offset by tax provisions for the recapitalization of certain overseas subsidiaries.

⁽¹¹⁾

In 2007, the Company recorded a $10 million aftertax charge associated with certain pension obligations in accordance with the Compensation – Retirement Benefits Topic of the Financial Accounting Standards Board (FASB) Codification.