Dollars in Millions Except Per Share Amounts

Consolidated Statements of Income

For the years ended December 31,

2019 2018 2017

Net sales $ 15,693 $ 15,544 $ 15,454

Cost of sales 6,368 6,313 6,174
Gross profit 9,325 9,231 9,280

Selling, general and administrative expenses 5,575 5,389 5,400

Other (income) expense, net 196 148 173
Operating profit 3,554 3,694 3,707
Non-service related postretirement costs 108 87 118
Interest (income) expense, net 145 143 102
Income before income taxes 3,301 3,464 3,487

Provision for income taxes 774 906 1,313

Net income including noncontrolling interests 2,527 2,558 2,174

Less: Net income attributable to noncontrolling interests 160 158 150

Net income attributable to Colgate-Palmolive Company $ 2,367 $ 2,400 $ 2,024

Earnings per common share, basic $ 2.76 $ 2.76 $ 2.30

Earnings per common share, diluted $ 2.75 $ 2.75 $ 2.28

See Notes to Consolidated Financial Statements.

Dollars in Millions

Consolidated Statements of Comprehensive Income

2019 2018 2017
Net income including noncontrolling interests $ 2,527 $ 2,558 $ 2,174  
Other comprehensive income (loss), net of tax:  
Cumulative translation adjustments 25 (237) 302  
Retirement plan and other retiree benefit adjustments (100) 38 54  
Gains (losses) on cash flow hedges (12) 10 (14)  
Total Other comprehensive income (loss), net of tax (87) (189) 342
Total Comprehensive income including noncontrolling interests 2,440 2,369 2,516
Less: Net income attributable to noncontrolling interests 160 158 150
Less: Cumulative translation adjustments attributable to
noncontrolling interests (2) (19) 17
Total Comprehensive income attributable to noncontrolling
interests 158 139 167
Total Comprehensive income attributable to Colgate-Palmolive
Company $ 2,282 $ 2,230 $ 2,349
Dollars in Millions Except Share and Per Share Amounts

Consolidated Balance Sheets

As of December 31,

2019 2018
Assets
Current Assets
Cash and cash equivalents $ 883 $ 726
Receivables (net of allowances of $82 and $77,
respectively) 1,440 1,400
Inventories 1,400 1,250
Other current assets 456 417
Total current assets 4,179 3,793

Property, plant and equipment, net 3,750 3,881

Goodwill 3,508 2,530
Other intangible assets, net 2,667 1,637
Deferred income taxes 177 152
Other assets 753 168
Total assets $ 15,034 $ 12,161

Liabilities and Shareholders’ Equity

Current Liabilities
Notes and loans payable $ 260 $ 12
Current portion of long-term debt 254 -
Accounts payable 1,237 1,222
Accrued income taxes 370 411
Other accruals 1,917 1,696
Total current liabilities 4,038 3,341

Long-term debt 7,333 6,354

Deferred income taxes 507 235
Other liabilities 2,598 2,034
Total liabilities 14,476 11,964

Commitments and contingent liabilities - -

Shareholders’ Equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 1,465,706,360 shares issued) 1,466 1,466

Additional paid-in capital 2,488 2,204

Retained earnings 22,501 21,615
Accumulated other comprehensive income (loss) (4,273) (4,188)
Unearned compensation (2) (3)
Treasury stock, at cost (22,063) (21,196)
Total Colgate-Palmolive Company shareholders’ 117 (102)
equityinterests
Noncontrolling 441 299
Total equity 558 197
Total liabilities and equity $ 15,034 $ 12,161

See Notes to Consolidated Financial Statements.

Dollars in Millions

Consolidated Statements of Changes in Shareholders' Equity

Colgate-Palmolive Company Shareholders' Equity

Additional Accumulated Other
Common Paid-In Unearned Treasury Retained Comprehensive Noncontrolling
Stock Capital Compensation Stock Earnings Income (Loss) Interests

Balance, January 1, 2017 $ 1,466 $ 1,691 $ (7) $ (19,135) $ 19,922 $ (4,180) $ 260
Net income 2,024 150
Other comprehensive income (loss), net of tax 325 17
Dividends (1,405) (124)
Stock-based compensation expense 127
Shares issued for stock options 197 313
Shares issued for restricted stock awards (34) 34
Treasury stock acquired (1,399)
Other 3 2 6 (10)
Balance, December 31, 2017 $ 1,466 $ 1,984 $ (5) $ (20,181) $ 20,531 $ (3,855) $ 303
Net income 2,400 158
Other comprehensive income (loss), net of tax (170) (19)
Dividends (1,448) (143)
Stock-based compensation expense 109
Shares issued for stock options 137 190
Shares issued for restricted stock awards (31) 31
Treasury stock acquired (1,238)
Other 5 2 2 132 (163)
Balance, December 31, 2018 $ 1,466 $ 2,204 $ (3) $ (21,196) $ 21,615 $ (4,188) $ 299
Net income 2,367 160
Other comprehensive income (loss), net of tax (85) (2)
Dividends (1,472) (141)
Stock-based compensation expense 100
Shares issued for stock options 210 305
Shares issued for restricted stock awards (29) 29
Noncontrolling interests assumed through
acquisition 125
Treasury stock acquired (1,202)
Other 3 1 1 (9)
Balance, December 31, 2019 $ 1,466 $ 2,488 $ (2) $ (22,063) $ 22,501 $ (4,273) $ 441

See Notes to Consolidated Financial Statements.

Dollars in Millions

Consolidated Statements of Cash Flow

For the years ended December 31,

2019 2018 2017

Operating Activities
Net income including noncontrolling interests $ 2,527 $ 2,558 $ 2,174
Adjustments to reconcile net income including noncontrolling interests
to net cash provided by operations:
Depreciation and amortization 519 511 475
Restructuring and termination benefits, net of cash 18 (7) 91
Stock-based compensation expense 100 109 127
Charge for U.S tax reform - 80 275
Deferred income taxes 17 27 108
Voluntary benefit plan contributions (113) (67) (81)
Cash effects of changes in:
Receivables 19 (79) (15)
Inventories (77) (58) (8)
Accounts payable and other accruals 36 18 (96)
Other non-current assets and liabilities 87 (36) 4
Net cash provided by operations 3,133 3,056 3,054

Investing Activities
Capital expenditures (335) (436) (553)
Sale of property and non-core product lines 1 1 44
Purchases of marketable securities and investments (184) (169) (347)
Proceeds from sale of marketable securities and investments 131 156 391
Payment for acquisitions, net of cash acquired (1,711) (728) 0
Other (1) 6 (6)
Net cash used in investing activities (2,099) (1,170) (471)

Financing Activities
Principal payments on debt (6,611) (7,355) (4,808)
Proceeds from issuance of debt 8,059 7,176 4,779
Dividends paid (1,614) (1,591) (1,529)
Purchases of treasury shares (1,202) (1,238) (1,399)
Proceeds from exercise of stock options 498 329 507
Net cash used in financing activities (870) (2,679) (2,450)

Effect of exchange rate changes on Cash and cash equivalents (7) (16) 87
Net increase (decrease) in Cash and cash equivalents 157 (809) 220

Cash and cash equivalents at beginning of year 726 1,535 1,315

Cash and cash equivalents at end of year $ 883 $ 726 $ 1,535

Supplemental Cash Flow Information

Income taxes paid $ 803 $ 847 $ 1,037

Interest paid $ 185 $ 194 $ 150

See Notes to Consolidated Financial Statements.

Dollars in Millions Except Per Share Amounts

Historical Financial Summary

For the years ended December 31,
(Unaudited)
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Continuing Operations
Net sales $ 15,693 $ 15,544 $ 15,454 $ 15,195 $ 16,034 $ 17,277 $ 17,420 $ 17,085 $ 16,734 $ 15,564
Results of operations:  
Net income attributable to Colgate-Palmolive Company 2,367 (1) 2,400 (2) 2,024 (3) 2,441 (4) 1,384 (5) 2,180 (6) 2,241 (7) 2,472 (8) 2,431 (9) 2,203 (10)
Per commom share, basic 2.76 (1) 2.76 (2) 2.30 (3) 2.74 (4) 1.53 (5) 2.38 (6) 2.41 (7) 2.60 (8) 2.49 (9) 2.22 (10)
Per commom share, diluted 2.75 (1) 2.75 (2) 2.28 (3) 2.72 (4) 1.52 (5) 2.36 (6) 2.38 (7) 2.57 (8) 2.47 (9) 2.16 (10)
Depreciation and amortization expense 519 511 475 443 449 442 439 425 421 376

Financial Position  
Current ratio 1.0 1.1 1.4 1.3 1.2 1.2 1.1 1.2 1.2 1.0
Property, plant and equipment, net 3,750 3,881 4,072 3,840 3,796 4,080 4,083 3,842 3,668 3,693
Capital expenditures 335 436 553 593 691 757 670 565 537 550
Total assets 15,034 12,161 12,676 12,123 11,935 13,440 13,968 13,379 12,711 11,163
Long-term debt 7,333 6,354 6,566 6,520 6,246 5,625 4,732 4,911 4,417 2,806
Colgate-Palmolive Company shareholders' equity 117 (102) (60) (243) (299) 1,145 2,305 2,189 2,375 2,675

Share and Other  

Book value per common share 0.66 0.23 0.28 0.03 (0.04) 1.55   2.79 2.60 2.71 2.95
Cash dividends declared and paid per common share 1.71 1.66 1.59 1.55 1.50 1.42   1.33 1.22 1.14 1.02
Closing price 68.84 59.52 75.45 65.44 66.62 69.19   65.21 52.27 46.20 40.19
Number of common shares outstanding (in millions) 854.7 862.9 874.7 883.1 892.7 906.7   919.9 935.8 960.0   989.8  
Number of common shareholders of record 20,556 21,900 22,700 23,600 24,400 25,400 26,900 27,600 28,900 29,900
Number of employees 34,300 33,600 35,900 36,700 37,900 37,700 37,400 37,700 38,600 39,200

Note: All per share amounts and numbers of shares outstanding were adjusted for the two-for-one stock split of the Company's common stock in 2013.

1 Net income attributable to Colgate-Palmolive Company and Earnings per common share in 2019 includes $102 of aftertax charges related to the Global Growth and Efficiency Program, a $20 aftertax charge for acquisition-related costs, a
$20 aftertax benefit related to a value-added tax matter in Brazil and a $29 tax benefit related to Swiss income tax reform.
2 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2018 include $125 of aftertax charges related to the Global Growth and Efficiency Program, a $15 benefit from a foreign tax matter, and an $80
charge related to U.S. tax reform.
3
Net income attributable to Colgate-Palmolive Company and earnings per common share in 2017 include $246 of aftertax charges related to the Global Growth and Efficiency Program and a $275 charge related to U.S. tax reform
4 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2016 include $168 of aftertax charges related to the Global Growth and Efficiency Program, a $63 aftertax gain on the sale of land in Mexico, $11 of
aftertax charges for a litigation matter and $35 of benefits from tax matters.
5 Net income (loss) attributable to Colgate-Palmolive Company and earnings (loss) per common share in 2015 include a $1,058 aftertax charge related to the change in accounting for the Company’s Venezuelan operations, $183 of aftertax
charges related to the Global Growth and Efficiency Program, $22 of aftertax charges related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of effective devaluations, $120 aftertax
gain on the sale of the South Pacific laundry detergent business, a $14 aftertax charge for a litigation matter and a $15 charge for a tax matter.

6 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2014 include $208 of aftertax charges related to the Global Growth and Efficiency Program, $214 of aftertax charges related to the remeasurement
of CP Venezuela’s local currency-denominated net monetary assets as a result of effective devaluations, $41 of charges for litigation matters, $3 of aftertax costs related to the sale of land in Mexico and a $66 charge for a tax matter.

7 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2013 include $278 of aftertax charges related to the Global Growth and Efficiency Program, a $111 aftertax charge related to the remeasurement of
CP Venezuela’s local currency-denominated net monetary assets as a result of a devaluation, a $23 charge for a litigation matter and $12 of aftertax costs related to the sale of land in Mexico.
8 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2012 include $70 of aftertax charges related to the Global Growth and Efficiency Program, $18 of aftertax costs related to the sale of land in Mexico
and $14 of aftertax costs associated with various business realignment and other cost-saving initiatives.
9 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2011 include an aftertax gain of $135 on the sale of the non-core laundry detergent business in Colombia, offset by $147 of aftertax costs
associated with various business realignment and other cost-saving initiatives, $9 of aftertax costs related to the sale of land in Mexico and a $21 charge for a litigation matter.
10 Net income attributable to Colgate-Palmolive Company and earnings per common share in 2010 include a $271 one-time charge related to the transition to hyperinflationary accounting in Venezuela, $61 of aftertax charges for termination
benefits related to overhead reduction initiatives, a $30 aftertax gain on sales of non-core product lines and a $31 benefit related to the reorganization of an overseas subsidiary.