Date of Report (Date of earliest event reported) | October 26, 2015 |
THE PROCTER & GAMBLE COMPANY |
(Exact name of registrant as specified in its charter) |
Ohio | 1-434 | 31-0411980 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
One Procter & Gamble Plaza, Cincinnati, Ohio | 45202 | |
(Address of principal executive offices) | Zip Code |
(513) 983-1100 | 45202 | |
(Registrant's telephone number, including area code) | Zip Code |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
THE PROCTER & GAMBLE COMPANY | |
By | /s/ SUSAN S. WHALEY |
Susan S. Whaley Assistant Secretary October 26, 2015 |
99.1 | Revised Selected Financial Data | |
99.2 | Revised Management's Discussion and Analysis | |
99.3 | Revised Consolidated Financial Statements and Accompanying Footnotes | |
99.4 | Updated Report of the Independent Registered Public Accountant | |
99.5 | Selected Financial Information & Non-GAAP Measures | |
23 | Consent of Independent Registered Public Accounting Firm | |
101.INS (1) | XBRL Instance Document | |
101.SCH (1) | XBRL Taxonomy Extension Schema Document | |
101.CAL (1) | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF (1) | XBRL Taxonomy Definition Linkbase Document | |
101.LAB (1) | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE (1) | XBRL Taxonomy Extension Presentation Linkbase Document |
(1) | Pursuant to Rule 406T of Regulations S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
1. | Post-Effective Amendment No. 1 to Registration Statement No. 33-49289 on Form S-8 for The Procter & Gamble 1992 Stock Plan; |
2. | Registration Statement No. 33-47656 on Form S-8 for The Procter & Gamble International Stock Ownership Plan; |
3. | Registration Statement No. 33-50273 on Form S-8 for The Procter & Gamble Commercial Company Employees’ Savings Plan; |
4. | Registration Statement No. 33-51469 on Form S-8 for The Procter & Gamble 1993 Non-Employee Directors’ Stock Plan; |
5. | Registration Statement No. 333-05715 on Form S-8 for The Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan; |
6. | Post-Effective Amendment No. 2 to Registration Statement No. 33-59257 on Form S-3 for The Procter & Gamble Shareholder Investment Program; |
7. | Registration Statement No. 333-14381 on Form S-8 for Profit Sharing Retirement Plan of The Procter & Gamble Commercial Company; |
8. | Registration Statement No. 333-14397 on Form S-8 for Procter & Gamble Subsidiaries Savings Plan; |
9. | Registration Statement No. 333-21783 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
10. | Registration Statement No. 333-37905 on Form S-8 for The Procter & Gamble Future Shares Plan; |
11. | Registration Statement No. 333-51213 on Form S-8 for Group Profit Sharing, Incentive, and Employer Contribution Plan (France); |
12. | Registration Statement No. 333-51219 on Form S-8 for Procter & Gamble Ireland Employees Share Ownership Plan; |
13. | Registration Statement No. 333-51221 on Form S-8 for Employee Stock Purchase Plan (Japan); |
14. | Registration Statement No. 333-51223 on Form S-8 for Savings and Thrift Plan (Saudi Arabia); |
15. | Registration Statement No. 333-34606 on Form S-8 for The Procter & Gamble Future Shares Plan; |
16. | Registration Statement No. 333-40264 on Form S-8 for Savings and Thrift Plan Saudi Arabia; |
17. | Registration Statement No. 333-44034 on Form S-8 for The Procter & Gamble International Stock Ownership Plan; |
18. | Registration Statement No. 333-47132 on Form S-8 for Employee Stock Purchase Plan (Japan); |
19. | Registration Statement No. 333-49764 on Form S-3 for The Procter & Gamble U.K. Share Investment Scheme; |
20. | Registration Statement No. 333-75030 on Form S-8 for The Procter & Gamble 2001 Stock and Incentive Compensation Plan; |
21. | Registration Statement No. 333-100561 on Form S-8 for The Procter & Gamble (U.K.) 1-4-1 Plan; |
22. | Registration Statement No. 333-108753 on Form S-8 for The Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan; |
23. | Registration Statement No. 333-108991 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
24. | Registration Statement No. 333-108992 on Form S-8 for Savings and Thrift Plan (Saudi Arabia); |
25. | Registration Statement No. 333-108993 on Form S-8 for Employee Stock Purchase Plan (Japan); |
26. | Registration Statement No. 333-108994 on Form S-8 for Procter & Gamble Ireland Employees Share Plan; |
27. | Registration Statement No. 333-108995 on Form S-8 for Group Profit Sharing, Incentive, and Employer Contribution Plan (France); |
28. | Registration Statement No. 333-108997 on Form S-8 for The Procter & Gamble International Stock Ownership Plan; |
29. | Registration Statement No. 333-108998 on Form S-8 for The Procter & Gamble 1993 Non-Employee Directors’ Stock Plan; |
30. | Registration Statement No. 333-108999 on Form S-8 for The Procter & Gamble 1992 Stock Plan; |
31. | Registration Statement No. 333-111304 on Form S-8 for The Procter & Gamble 2003 Non-Employee Directors’ Stock Plan; |
32. | Registration Statement No. 333-111305 on Form S-8 for The Procter & Gamble U.K. Share Investment Scheme; |
33. | Amendment No. 1 to Registration Statement No. 333-113515 on Form S-3 for The Procter & Gamble Company Debt Securities and Warrants; |
34. | Amendment No. 3 to Registration Statement No. 333-123309 on Form S-4 for The Procter & Gamble Company; |
35. | Registration Statement No. 333-128859 on Form S-8 for certain employee benefit plans of The Gillette Company (2004 Long-Term Incentive Plan of The Gillette Company; 1971 Stock Option Plan of The Gillette Company; James M. Kilts Non-Statutory Stock Option Plan; The Gillette Company Employees’ Savings Plan; The Gillette Company Supplemental Savings Plan; The Gillette Company Global Employee Stock Ownership Plan (GESOP)); |
36. | Registration Statement No. 333-143801 on Form S-8 for The Procter & Gamble Savings Plan; |
37. | Registration Statement No. 333-145938 on Form S-3 for The Procter & Gamble Company and Procter & Gamble International Funding SCA; |
38. | Registration Statement No. 333-155046 on Form S-8 for Employee Stock Purchase Plan (Japan); |
39. | Registration Statement No. 333-156032 on Form S-3 for The Procter & Gamble U.K. Share Investment Scheme; |
40. | Registration Statement No. 333-156033 on Form S-3 for The Procter & Gamble Shareholder Investment Program; |
41. | Registration Statement No. 333-161725 on Form S-8 for The Procter & Gamble Savings Plan; |
42. | Registration Statement No. 333-161767 on Form S-3 for The Procter & Gamble Company and Procter & Gamble International Funding SCA; |
43. | Registration Statement No. 333-164612 on Form S-8 for The Procter & Gamble 2009 Stock and Incentive Compensation Plan; |
44. | Registration Statement No. 333-177760 on Form S-3 for The Procter & Gamble Shareholder Investment Program; |
45. | Registration Statement No. 333-177762 on Form S-3 for The Procter & Gamble Company and Procter & Gamble International Funding SCA; |
46. | Registration Statement No. 333-177878 on Form S-3 for The Procter & Gamble U.K. Share Investment Scheme; |
47. | Registration Statement No. 333-192841 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
48. | Registration Statement No. 333-192867 on Form S-8 for The Procter & Gamble 2013 Non-Employee Directors’ Stock Plan; |
49. | Registration Statement No. 333-199592 on Form S-8 for The Procter & Gamble 2014 Stock and Incentive Compensation Plan; |
50. | Registration Statement No. 333-199594 on Form S-3 for The Procter & Gamble Company and Procter & Gamble International Funding SCA; |
51. | Registration Statement No. 333-199595 on Form S-3 for The Procter & Gamble Shareholder Investment Program; and |
52. | Registration Statement No. 333-199613 on Form S-3 for The Procter & Gamble U.K. Share Investment Scheme. |
Amounts in millions, except per share amounts | 2015 (2) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
Net sales | $ | 70,749 | $ | 74,401 | $ | 73,910 | $ | 73,138 | $ | 70,464 | $ | 66,810 | |||||||||||
Gross profit | 33,693 | 35,371 | 35,858 | 35,254 | 35,110 | 34,263 | |||||||||||||||||
Operating income | 11,049 | 13,910 | 13,051 | 12,495 | 13,849 | 14,001 | |||||||||||||||||
Net earnings from continuing operations | 8,287 | 10,658 | 10,346 | 8,864 | 10,509 | 9,635 | |||||||||||||||||
Net earnings/(loss) from discontinued operations | (1,143 | ) | 1,127 | 1,056 | 2,040 | 1,418 | 3,211 | ||||||||||||||||
Net earnings attributable to Procter & Gamble | 7,036 | 11,643 | 11,312 | 10,756 | 11,797 | 12,736 | |||||||||||||||||
Net earnings margin from continuing operations | 11.7 | % | 14.3 | % | 14.0 | % | 12.1 | % | 14.9 | % | 14.4 | % | |||||||||||
Basic net earnings per common share: (1) | |||||||||||||||||||||||
Earnings from continuing operations | $ | 2.92 | $ | 3.78 | $ | 3.65 | $ | 3.08 | $ | 3.62 | $ | 3.21 | |||||||||||
Earnings/(loss) from discontinued operations | (0.42 | ) | 0.41 | 0.39 | 0.74 | 0.50 | 1.11 | ||||||||||||||||
Basic net earnings per common share | $ | 2.50 | $ | 4.19 | $ | 4.04 | $ | 3.82 | $ | 4.12 | $ | 4.32 | |||||||||||
Diluted net earnings per common share: (1) | |||||||||||||||||||||||
Earnings from continuing operations | $ | 2.84 | $ | 3.63 | $ | 3.50 | $ | 2.97 | $ | 3.46 | $ | 3.08 | |||||||||||
Earnings/(loss) from discontinued operations | (0.40 | ) | 0.38 | 0.36 | 0.69 | 0.47 | 1.03 | ||||||||||||||||
Diluted net earnings per common share | $ | 2.44 | $ | 4.01 | $ | 3.86 | $ | 3.66 | $ | 3.93 | $ | 4.11 | |||||||||||
Dividends per common share | $ | 2.59 | $ | 2.45 | $ | 2.29 | $ | 2.14 | $ | 1.97 | $ | 1.80 | |||||||||||
Research and development expense | $ | 1,991 | $ | 1,910 | $ | 1,867 | $ | 1,874 | $ | 1,812 | $ | 1,733 | |||||||||||
Advertising expense | 7,180 | 7,867 | 8,188 | 7,839 | 7,713 | 7,060 | |||||||||||||||||
Total assets | 129,495 | 144,266 | 139,263 | 132,244 | 138,354 | 128,172 | |||||||||||||||||
Capital expenditures | 3,736 | 3,848 | 4,008 | 3,964 | 3,306 | 3,067 | |||||||||||||||||
Long-term debt | 18,327 | 19,807 | 19,111 | 21,080 | 22,033 | 21,360 | |||||||||||||||||
Shareholders' equity | 63,050 | 69,976 | 68,709 | 64,035 | 68,001 | 61,439 |
(1) | Basic net earnings per common share and diluted net earnings per common share are calculated based on net earnings attributable to Procter & Gamble. |
(2) | Our 2015 net sales were negatively impacted by approximately $4.4 billion of unfavorable foreign exchange fluctuation compared to 2014. Net earnings attributable to Procter & Gamble in 2015 were negatively impacted by approximately $1.4 billion due to foreign exchange, $2.1 billion of non-cash impairment charges related to the Batteries business reported in discontinued operations and a $2.1 billion Venezuelan deconsolidation charge. These impacts are discussed more fully in "Summary of 2015 Results" and "Results of Operations" of the MD&A (Exhibit 99.2). |
• | Overview |
• | Summary of 2015 Results |
• | Economic Conditions and Uncertainties |
• | Results of Operations |
• | Segment Results |
• | Cash Flow, Financial Condition and Liquidity |
• | Significant Accounting Policies and Estimates |
• | Other Information |
Reportable Segment | % of Net Sales* | % of Net Earnings* | GBUs (Categories) | Billion Dollar Brands |
Beauty | 18% | 20% | Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); Hair Care | Head & Shoulders, Olay, Pantene, SK-II |
Grooming | 10% | 17% | Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Electronic Hair Removal | Fusion, Gillette, Mach3, Prestobarba |
Health Care | 11% | 11% | Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); Oral Care (Toothbrush, Toothpaste, Other Oral Care) | Crest, Oral-B, Vicks |
Fabric Care and Home Care | 32% | 25% | Fabric Care (Laundry Additives, Fabric Enhancers, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care) | Ariel, Dawn, Downy, Febreze, Gain, Tide |
Baby, Feminine and Family Care | 29% | 27% | Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper) | Always, Bounty, Charmin, Pampers |
* | Percent of net sales and net earnings from continuing operations for the year ended June 30, 2015 (excluding results held in Corporate). |
• | Organic sales growth above market growth rates in the categories and geographies in which we compete; |
• | Core EPS growth of high single digits; and |
• | Adjusted free cash flow productivity of 90% or greater. |
Amounts in millions, except per share amounts | 2015 | Change vs. Prior Year | 2014 | Change vs. Prior Year | 2013 | ||||||||||||
Net sales | $ | 70,749 | (5 | )% | $ | 74,401 | 1 | % | $ | 73,910 | |||||||
Operating income | 11,049 | (21 | )% | 13,910 | 7 | % | 13,051 | ||||||||||
Net earnings from continuing operations | 8,287 | (22 | )% | 10,658 | 3 | % | 10,346 | ||||||||||
Net earnings/(loss) from discontinued operations | (1,143 | ) | (201 | )% | 1,127 | 7 | % | 1,056 | |||||||||
Net earnings attributable to Procter & Gamble | 7,036 | (40 | )% | 11,643 | 3 | % | 11,312 | ||||||||||
Diluted net earnings per common share | 2.44 | (39 | )% | 4.01 | 4 | % | 3.86 | ||||||||||
Diluted net earnings per share from continuing operations | 2.84 | (22 | )% | 3.63 | 4 | % | 3.50 | ||||||||||
Core earnings per common share | 3.76 | (2 | )% | 3.85 | 5 | % | 3.65 |
• | Net sales decreased 5% to $70.7 billion including a negative 6% impact from foreign exchange. |
◦ | Organic sales increased 2%. |
◦ | Unit volume decreased 1%. Volume grew low single digits in Fabric Care and Home Care. Volume decreased low single digits in Baby, Feminine and Family Care, Grooming, Health Care and Beauty. |
• | Net earnings from continuing operations decreased $2.4 billion or 22% due to a $2.1 billion after tax charge related to the deconsolidation of our Venezuelan subsidiaries and the decline in net sales, partially offset by reduced selling, general and administrative expenses (SG&A). Foreign exchange impacts negatively affected net earnings by approximately 11%. |
• | Net earnings from discontinued operations decreased $2.3 billion due primarily to impairment charges in our |
• | Net earnings attributable to Procter & Gamble were $7.0 billion, a decrease of $4.6 billion or 40% versus the prior year period due primarily to the Venezuelan deconsolidation charge and impairment charges in our Batteries business. |
• | Diluted net earnings per share decreased 39% to $2.44. |
◦ | Diluted net earnings per share from continuing operations decreased 22% to $2.84. |
◦ | Core EPS decreased 2% to $3.76. |
• | Cash flow from operating activities was $14.6 billion. |
◦ | Adjusted free cash flow was $11.6 billion. |
◦ | Adjusted free cash flow productivity was 102%. |
Comparisons as a percentage of net sales; Years ended June 30 | 2015 | Basis Point Change | 2014 | Basis Point Change | 2013 | |||||||||
Gross margin | 47.6 | % | 10 | 47.5 | % | (100 | ) | 48.5 | % | |||||
Selling, general and administrative expense | 29.1 | % | 30 | 28.8 | % | (160 | ) | 30.4 | % | |||||
Operating margin | 15.6 | % | (310 | ) | 18.7 | % | 100 | 17.7 | % | |||||
Earnings from continuing operations before income taxes | 15.6 | % | (260 | ) | 18.2 | % | 10 | 18.1 | % | |||||
Net earnings from continuing operations | 11.7 | % | (260 | ) | 14.3 | % | 30 | 14.0 | % | |||||
Net earnings attributable to Procter & Gamble | 9.9 | % | (570 | ) | 15.6 | % | 30 | 15.3 | % |
Net Sales Change Drivers (2015 vs. 2014) | ||||||||||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other | Net Sales Growth | ||||||||||||||
Beauty | (3 | )% | (2 | )% | (5 | )% | 2 | % | 0 | % | 0 | % | (6 | )% | ||||||
Grooming | (3 | )% | (3 | )% | (8 | )% | 4 | % | 0 | % | 0 | % | (7 | )% | ||||||
Health Care | (1 | )% | (1 | )% | (5 | )% | 2 | % | 3 | % | 0 | % | (1 | )% | ||||||
Fabric Care and Home Care | 1 | % | 1 | % | (6 | )% | 1 | % | 0 | % | (1 | )% | (5 | )% | ||||||
Baby, Feminine and Family Care | (1 | )% | (1 | )% | (6 | )% | 2 | % | 2 | % | 0 | % | (3 | )% | ||||||
TOTAL COMPANY | (1 | )% | (1 | )% | (6 | )% | 2 | % | 1 | % | (1 | )% | (5 | )% |
Net Sales Change Drivers (2014 vs. 2013) | ||||||||||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other | Net Sales Growth | ||||||||||||||
Beauty | 1 | % | 1 | % | (3 | )% | 1 | % | (1 | )% | (1 | )% | (3 | )% | ||||||
Grooming | 1 | % | 1 | % | (3 | )% | 4 | % | (2 | )% | 0 | % | 0 | % | ||||||
Health Care | 2 | % | 2 | % | (1 | )% | 1 | % | (1 | )% | 0 | % | 1 | % | ||||||
Fabric Care and Home Care | 4 | % | 5 | % | (3 | )% | (1 | )% | 0 | % | 0 | % | 0 | % | ||||||
Baby, Feminine and Family Care | 4 | % | 3 | % | (3 | )% | 1 | % | 0 | % | 0 | % | 2 | % | ||||||
TOTAL COMPANY | 3 | % | 3 | % | (3 | )% | 1 | % | (1 | )% | 1 | % | 1 | % |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Volume | N/A | (3)% | N/A | 1% | |||
Net sales | $12,608 | (6)% | $13,401 | (3)% | |||
Net earnings | $2,181 | (5)% | $2,300 | 13% | |||
% of net sales | 17.3% | 10 bps | 17.2% | 240 bps |
• | Volume in Hair Care decreased low single digits in both developed and developing markets following minor divestitures and competitive activity. Global market share of the hair care category was down more than half a point. |
• | Volume in Skin and Personal Care was down mid-single digits, driven by a high single-digits decline in developing markets, primarily due to decreases in skin care and personal cleansing due to ongoing competitive activity. Volume was unchanged in developed markets. Global market share of the skin and personal care category was down half a point. |
• | Volume in Hair Care increased low single digits. Volume in developing regions increased low single digits behind market growth, while volume in developed regions was unchanged. Global market share of the hair care category decreased half a point. |
• | Volume in Skin and Personal Care increased low single digits due to product and commercial innovation and market growth for personal cleansing and deodorants, partially offset by a decrease in facial skin care due to competitive activity. Global market share of the skin and personal care category decreased nearly half a point. |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Volume | N/A | (3)% | N/A | 1% | |||
Net sales | $7,441 | (7)% | $8,009 | —% | |||
Net earnings | $1,787 | (9)% | $1,954 | 6% | |||
% of net sales | 24.0% | (40) bps | 24.4% | 150 bps |
• | Shave Care volume decreased low single digits due to a mid-single-digit decline in developed regions from lower trade inventory levels and a low single digit-decrease in developing regions following increased pricing. Global market share of the blades and razors category was up slightly. |
• | Volume in Electronic Hair Removal increased mid-single digits due to mid-single-digit growth in developed markets and low single-digit growth in developing markets behind product innovation and market growth. Global market share of the electronic hair removal category was flat. |
• | Shave Care volume increased low single digits due to a mid-single-digit growth in developing regions from innovation and market growth, partially offset by a low single-digit decrease in developed regions due to market contraction. Global market share of the blades and razors category was up slightly. |
• | Volume in Electronic Hair Removal decreased low single digits due to the sale of the Braun household appliances business. Organic volume increased mid-single digits driven by developing markets due to market growth, product innovation on men's shavers and shipments to build inventory to support initiatives and new distributors. Global market share of the electronic hair removal category was down less than half a point. |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Volume | N/A | (1)% | N/A | 2% | |||
Net sales | $7,713 | (1)% | $7,798 | 1% | |||
Net earnings | $1,167 | 8% | $1,083 | (1)% | |||
% of net sales | 15.1% | 120 bps | 13.9% | (30) bps |
• | Oral Care volume decreased low single digits as a mid-single-digit decline in developing regions due to competitive activity and following increased pricing was partially offset by a low single-digit increase in developed regions from product innovation. Global market share of the oral care category was flat. |
• | Volume in Personal Health Care decreased low single digits due to a low single-digit decrease in developed regions from competitive activity. Volume in developing markets was unchanged. Global market share of the personal health care category was down about a point. |
• | Oral Care volume increased low single digits due to a mid-single-digit increase in developing regions behind geographic market expansion and market growth and a low single-digit increase in developed regions from innovation. Global market share of the oral care category increased less than half a point. |
• | Volume in Personal Health Care decreased low single digits due to a weak cough and cold season which was only partially offset by innovation and market expansion. |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Volume | N/A | 1% | N/A | 4% | |||
Net sales | $22,274 | (5)% | $23,506 | —% | |||
Net earnings | $2,634 | (5)% | $2,770 | (2)% | |||
% of net sales | 11.8% | - | 11.8% | (30) bps |
• | Fabric Care volume increased low single digits due to low single-digit growth in developed regions behind market growth and product innovation. Volume was unchanged |
• | Home Care volume was unchanged as decreases due to competitive activity, mainly in developed markets, were offset by increases from product innovation and expanded distribution. Global market share of the home care category was down nearly half a point. |
• | Fabric Care volume increased mid-single digits driven by a high single-digit volume increase in developing regions behind market growth and innovation, and a low single-digit increase in developed regions due to product innovation. Global market share of the fabric care category was flat. |
• | Home Care volume increased mid-single digits driven by a high single-digit increase in developing markets from distribution expansion and market growth, and from a low single digit increase in developed regions due to product innovation. Global market share of the home care category was up less than half a point. |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Volume | N/A | (1)% | N/A | 4% | |||
Net sales | $20,247 | (3)% | $20,950 | 2% | |||
Net earnings | $2,938 | —% | $2,940 | (4)% | |||
% of net sales | 14.5% | 50 bps | 14.0% | (90) bps |
• | Volume in Baby Care decreased low single digits due to a mid-single-digit decrease in developing regions following increased pricing, partially offset by a low single-digit increase in developed regions from product innovation. Global market share of the baby care category decreased less than a point. |
• | Volume in Feminine Care decreased low single digits as high single-digit decline in developing regions due to competition and increased pricing was partially offset by a mid-single-digit increase in developed regions from product innovation, including the entry into the female adult incontinence category. Global market share of the feminine care category was flat. |
• | Volume in Family Care was unchanged as low single-digit growth in developed regions was offset by a double-digit decline in developing regions due to discontinuation of lower priced product offerings. In the U.S., all-outlet share of the family care category decreased less than a point. |
• | Volume in Baby Care increased mid-single digits due to a mid-single-digit increase in developing regions, from market growth and product innovation and a mid-single-digit increase in developed regions due to the buyout of our joint venture partner in Iberia and product innovation in North America, partially offset by competitive activity. Global market share of the baby care category decreased slightly. |
• | Volume in Feminine Care increased mid-single digits due to a mid-single-digit increase in developed regions, from the buyout of our joint venture partner in Iberia and innovation, and a low single-digit increase in developing regions from market growth and innovation. Organic volume was up low single digits. Global market share of |
• | Volume in Family Care increased low single digits due to product innovation on Charmin and Bounty and lower pricing, partially offset by competitive activity. In the U.S., all-outlet share of the family care category decreased less than half point. |
($ millions) | 2015 | Change vs. 2014 | 2014 | Change vs. 2013 | |||
Net sales | $466 | (37)% | $737 | 31% | |||
Net earnings | $(2,420) | N/A | $(389) | N/A |
Amounts in millions | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | ||||||||||||||
RECORDED LIABILITIES | |||||||||||||||||||
Total debt | $ | 30,185 | $ | 11,985 | $ | 3,403 | $ | 4,276 | $ | 10,521 | |||||||||
Capital leases | 52 | 20 | 23 | 7 | 2 | ||||||||||||||
Uncertain tax positions (1) | 445 | 445 | — | — | — | ||||||||||||||
OTHER | |||||||||||||||||||
Interest payments relating to long-term debt | 6,925 | 699 | 1,277 | 1,017 | 3,932 | ||||||||||||||
Operating leases (2) | 1,617 | 249 | 435 | 371 | 562 | ||||||||||||||
Minimum pension funding (3) | 656 | 215 | 441 | — | — | ||||||||||||||
Purchase obligations (4) | 1,507 | 586 | 449 | 242 | 230 | ||||||||||||||
TOTAL CONTRACTUAL COMMITMENTS | $ | 41,387 | $ | 14,199 | $ | 6,028 | $ | 5,913 | $ | 15,247 |
(1) | As of June 30, 2015, the Company's Consolidated Balance Sheet reflects a liability for uncertain tax positions of $1.5 billion, including $366 million of interest and penalties. Due to the high degree of uncertainty regarding the timing of future cash outflows of liabilities for uncertain tax positions beyond one year, a reasonable estimate of the period of cash settlement beyond twelve months from the balance sheet date of June 30, 2015, cannot be made. |
(2) | Operating lease obligations are shown net of guaranteed sublease income. |
(3) | Represents future pension payments to comply with local funding requirements. These future pension payments assume the Company continues to meet its future statutory funding requirements. Considering the current economic environment in which the Company operates, the Company believes its cash flows are adequate to meet the future statutory funding requirements. The projected payments beyond fiscal year 2018 are not currently determinable. |
(4) | Primarily reflects future contractual payments under various take-or-pay arrangements entered into as part of the normal course of business. Commitments made under take-or-pay obligations represent future purchases in line with expected usage to obtain favorable pricing. This includes service contracts for information technology, human resources management and facilities management activities that have been outsourced. While the amounts listed represent contractual obligations, we do not believe it is likely that the full contractual amount would be paid if the underlying contracts were canceled prior to maturity. In such cases, we generally are able to negotiate new contracts or cancellation penalties, resulting in a reduced payment. The amounts do not include other contractual purchase obligations that are not take-or-pay arrangements. Such contractual purchase obligations are primarily purchase orders at fair value that are part of normal operations and are reflected in historical operating cash flow trends. We do not believe such purchase obligations will adversely affect our liquidity position. |
Year ended June 30, 2015 | Net Sales Growth | Foreign Exchange Impact | Acquisition/Divestiture Impact* | Organic Sales Growth | ||||
Beauty | (6 | )% | 5 | % | 1 | % | 0 | % |
Grooming | (7 | )% | 8 | % | 0 | % | 1 | % |
Health Care | (1 | )% | 5 | % | 0 | % | 4 | % |
Fabric Care and Home Care | (5 | )% | 6 | % | 1 | % | 2 | % |
Baby, Feminine and Family Care | (3 | )% | 6 | % | 0 | % | 3 | % |
TOTAL COMPANY | (5 | )% | 6 | % | 1 | % | 2 | % |
Year ended June 30, 2014 | Net Sales Growth | Foreign Exchange Impact | Acquisition/Divestiture Impact* | Organic Sales Growth | ||||
Beauty | (3 | )% | 3 | % | 1 | % | 1 | % |
Grooming | 0 | % | 3 | % | 0 | % | 3 | % |
Health Care | 1 | % | 1 | % | 0 | % | 2 | % |
Fabric Care and Home Care | 0 | % | 3 | % | 1 | % | 4 | % |
Baby, Feminine and Family Care | 2 | % | 3 | % | (1 | )% | 4 | % |
TOTAL COMPANY | 1 | % | 3 | % | (1 | )% | 3 | % |
* | Acquisition/Divestiture Impact includes rounding impacts necessary to reconcile net sales to organic sales. |
• | charges in each period presented for 1) incremental restructuring due to increased focus on productivity and cost savings, 2) the impacts from foreign exchange policy changes and the devaluations of the official foreign currency exchange rate in Venezuela, and 3) for certain European legal matters; |
• | a holding gain in 2013 on the purchase of the balance of our Iberian joint venture; |
• | impairment charges in 2013 for goodwill and indefinite-lived intangible assets; and |
• | a charge in 2015 for the Venezuelan deconsolidation. |
Years ended June 30 | 2015 | 2014 | 2013 | |||
Diluted net earnings per share - continuing operations | $2.84 | $3.63 | $3.50 | |||
Incremental restructuring charges | 0.17 | 0.11 | 0.14 | |||
Venezuela balance sheet devaluation impacts | 0.04 | 0.09 | 0.08 | |||
Charges for European legal matters | 0.01 | 0.02 | 0.05 | |||
Gain on purchase of balance of Iberian JV | — | — | (0.21) | |||
Impairment charges | — | — | 0.10 | |||
Venezuelan deconsolidation | 0.71 | — | — | |||
Rounding | (0.01) | — | (0.01) | |||
CORE EPS | $3.76 | $3.85 | $3.65 | |||
Core EPS Growth | (2 | )% | 5 | % | 6 | % |
Operating Cash Flow | Capital Spending | Free Cash Flow | Cash Tax Payment - Pet Care Sale | Adjusted Free Cash Flow | |||||||||||
2015 | $ | 14,608 | $ | (3,736 | ) | $ | 10,872 | $ | 729 | $ | 11,601 | ||||
2014 | 13,958 | (3,848 | ) | 10,110 | — | 10,110 | |||||||||
2013 | 14,873 | (4,008 | ) | 10,865 | — | 10,865 |
Net Earnings | Impairment & Decon- solidation Charges | Net Earnings Excluding Impairment & Deconsolid- ation Charges | Adjusted Free Cash Flow | Adjusted Free Cash Flow Productivity | ||||||||||
2015 | $ | 7,144 | $ | 4,187 | $ | 11,331 | $ | 11,601 | 102 | % | ||||
2014 | 11,785 | — | 11,785 | 10,110 | 86 | % | ||||||||
2013 | 11,402 | — | 11,402 | 10,865 | 95 | % |
Amounts in millions except per share amounts; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
NET SALES | $ | 70,749 | $ | 74,401 | $ | 73,910 | |||||
Cost of products sold | 37,056 | 39,030 | 38,052 | ||||||||
Selling, general and administrative expense | 20,616 | 21,461 | 22,499 | ||||||||
Goodwill and indefinite-lived intangible asset impairment charges | — | — | 308 | ||||||||
Venezuela deconsolidation charge | 2,028 | — | — | ||||||||
OPERATING INCOME | 11,049 | 13,910 | 13,051 | ||||||||
Interest expense | 626 | 709 | 668 | ||||||||
Interest income | 149 | 99 | 85 | ||||||||
Other non-operating income, net | 440 | 209 | 940 | ||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 11,012 | 13,509 | 13,408 | ||||||||
Income taxes on continuing operations | 2,725 | 2,851 | 3,062 | ||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 8,287 | 10,658 | 10,346 | ||||||||
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS | (1,143 | ) | 1,127 | 1,056 | |||||||
NET EARNINGS | 7,144 | 11,785 | 11,402 | ||||||||
Less: Net earnings attributable to noncontrolling interests | 108 | 142 | 90 | ||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 7,036 | $ | 11,643 | $ | 11,312 | |||||
BASIC NET EARNINGS PER COMMON SHARE: (1) | |||||||||||
Earnings from continuing operations | $ | 2.92 | $ | 3.78 | $ | 3.65 | |||||
Earnings/(loss) from discontinued operations | (0.42 | ) | 0.41 | 0.39 | |||||||
BASIC NET EARNINGS PER COMMON SHARE | $ | 2.50 | $ | 4.19 | $ | 4.04 | |||||
DILUTED NET EARNINGS PER COMMON SHARE: (1) | |||||||||||
Earnings from continuing operations | $ | 2.84 | $ | 3.63 | $ | 3.50 | |||||
Earnings/(loss) from discontinued operations | (0.40 | ) | 0.38 | 0.36 | |||||||
DILUTED NET EARNINGS PER COMMON SHARE | 2.44 | 4.01 | 3.86 | ||||||||
DIVIDENDS PER COMMON SHARE | $ | 2.59 | $ | 2.45 | $ | 2.29 |
(1) | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble. |
Amounts in millions; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
NET EARNINGS | $ | 7,144 | $ | 11,785 | $ | 11,402 | |||||
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||||||||||
Financial statement translation | (7,220 | ) | 1,044 | 710 | |||||||
Unrealized gains/(losses) on hedges (net of $739, $(209) and $92 tax, respectively) | 1,234 | (347 | ) | 144 | |||||||
Unrealized gains/(losses) on investment securities (net of $0, $(4) and $(5) tax, respectively) | 24 | 9 | (24 | ) | |||||||
Unrealized gains/(losses) on defined benefit retirement plans (net of $328, $(356) and $637 tax, respectively) | 844 | (869 | ) | 1,004 | |||||||
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | (5,118 | ) | (163 | ) | 1,834 | ||||||
TOTAL COMPREHENSIVE INCOME | 2,026 | 11,622 | 13,236 | ||||||||
Less: Total comprehensive income attributable to noncontrolling interests | 108 | 150 | 94 | ||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 1,918 | $ | 11,472 | $ | 13,142 |
Amounts in millions; Years ended June 30 | 2015 | 2014 | |||||
Assets | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 6,836 | $ | 8,548 | |||
Available-for-sale investment securities | 4,767 | 2,128 | |||||
Accounts receivable | 4,568 | 6,034 | |||||
INVENTORIES | |||||||
Materials and supplies | 1,266 | 1,599 | |||||
Work in process | 525 | 656 | |||||
Finished goods | 3,188 | 3,951 | |||||
Total inventories | 4,979 | 6,206 | |||||
Deferred income taxes | 1,356 | 1,092 | |||||
Prepaid expenses and other current assets | 2,708 | 3,664 | |||||
Current assets held for sale | 4,432 | 3,945 | |||||
TOTAL CURRENT ASSETS | 29,646 | 31,617 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 19,655 | 21,607 | |||||
GOODWILL | 44,622 | 50,729 | |||||
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET | 25,010 | 28,729 | |||||
NONCURRENT ASSETS HELD FOR SALE | 5,204 | 5,811 | |||||
OTHER NONCURRENT ASSETS | 5,358 | 5,773 | |||||
TOTAL ASSETS | $ | 129,495 | $ | 144,266 | |||
Liabilities and Shareholders' Equity | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 8,138 | $ | 8,348 | |||
Accrued and other liabilities | 8,091 | 8,734 | |||||
Current liabilities held for sale | 1,543 | 1,044 | |||||
Debt due within one year | 12,018 | 15,600 | |||||
TOTAL CURRENT LIABILITIES | 29,790 | 33,726 | |||||
LONG-TERM DEBT | 18,327 | 19,807 | |||||
DEFERRED INCOME TAXES | 9,179 | 9,889 | |||||
NONCURRENT LIABILITIES HELD FOR SALE | 717 | 727 | |||||
OTHER NONCURRENT LIABILITIES | 8,432 | 10,141 | |||||
TOTAL LIABILITIES | 66,445 | 74,290 | |||||
SHAREHOLDERS' EQUITY | |||||||
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) | 1,077 | 1,111 | |||||
Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) | — | — | |||||
Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2015 - 4,009.2, 2014 - 4,009.2) | 4,009 | 4,009 | |||||
Additional paid-in capital | 63,852 | 63,911 | |||||
Reserve for ESOP debt retirement | (1,320 | ) | (1,340 | ) | |||
Accumulated other comprehensive income/(loss) | (12,780 | ) | (7,662 | ) | |||
Treasury stock, at cost (shares held: 2015 - 1,294.7, 2014 - 1,298.4) | (77,226 | ) | (75,805 | ) | |||
Retained earnings | 84,807 | 84,990 | |||||
Noncontrolling interest | 631 | 762 | |||||
TOTAL SHAREHOLDERS' EQUITY | 63,050 | 69,976 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 129,495 | $ | 144,266 |
Dollars in millions; Shares in thousands | Common Shares Outstanding | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total | |||||||||||||||||||
BALANCE JUNE 30, 2012 | 2,748,033 | $ | 4,008 | $ | 1,195 | $ | 63,181 | $ | (1,357 | ) | $ | (9,333 | ) | $ | (69,604 | ) | $ | 75,349 | $ | 596 | $ | 64,035 | |||||||
Net earnings | 11,312 | 90 | 11,402 | ||||||||||||||||||||||||||
Other comprehensive income | 1,834 | 1,834 | |||||||||||||||||||||||||||
Dividends to shareholders: | |||||||||||||||||||||||||||||
Common | (6,275 | ) | (6,275 | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | (244 | ) | (244 | ) | |||||||||||||||||||||||||
Treasury purchases | (84,234 | ) | (5,986 | ) | (5,986 | ) | |||||||||||||||||||||||
Employee plan issuances | 70,923 | 1 | 352 | 3,573 | 3,926 | ||||||||||||||||||||||||
Preferred stock conversions | 7,605 | (58 | ) | 7 | 51 | — | |||||||||||||||||||||||
ESOP debt impacts | 5 | 55 | 60 | ||||||||||||||||||||||||||
Noncontrolling interest, net | (2 | ) | (41 | ) | (43 | ) | |||||||||||||||||||||||
BALANCE JUNE 30, 2013 | 2,742,327 | $ | 4,009 | $ | 1,137 | $ | 63,538 | $ | (1,352 | ) | $ | (7,499 | ) | $ | (71,966 | ) | $ | 80,197 | $ | 645 | $ | 68,709 | |||||||
Net earnings | 11,643 | 142 | 11,785 | ||||||||||||||||||||||||||
Other comprehensive loss | (163 | ) | (163 | ) | |||||||||||||||||||||||||
Dividends to shareholders: | |||||||||||||||||||||||||||||
Common | (6,658 | ) | (6,658 | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | (253 | ) | (253 | ) | |||||||||||||||||||||||||
Treasury purchases | (74,987 | ) | (6,005 | ) | (6,005 | ) | |||||||||||||||||||||||
Employee plan issuances | 40,288 | 364 | 2,144 | 2,508 | |||||||||||||||||||||||||
Preferred stock conversions | 3,178 | (26 | ) | 4 | 22 | — | |||||||||||||||||||||||
ESOP debt impacts | 12 | 61 | 73 | ||||||||||||||||||||||||||
Noncontrolling interest, net | 5 | (25 | ) | (20 | ) | ||||||||||||||||||||||||
BALANCE JUNE 30, 2014 | 2,710,806 | $ | 4,009 | $ | 1,111 | $ | 63,911 | $ | (1,340 | ) | $ | (7,662 | ) | $ | (75,805 | ) | $ | 84,990 | $ | 762 | $ | 69,976 | |||||||
Net earnings | 7,036 | 108 | 7,144 | ||||||||||||||||||||||||||
Other comprehensive loss | (5,118 | ) | (5,118 | ) | |||||||||||||||||||||||||
Dividends to shareholders: | |||||||||||||||||||||||||||||
Common | (7,028 | ) | (7,028 | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | (259 | ) | (259 | ) | |||||||||||||||||||||||||
Treasury purchases | (54,670 | ) | (4,604 | ) | (4,604 | ) | |||||||||||||||||||||||
Employee plan issuances | 54,100 | 156 | 3,153 | 3,309 | |||||||||||||||||||||||||
Preferred stock conversions | 4,335 | (34 | ) | 4 | 30 | — | |||||||||||||||||||||||
ESOP debt impacts | 20 | 68 | 88 | ||||||||||||||||||||||||||
Noncontrolling interest, net | (219 | ) | (239 | ) | (458 | ) | |||||||||||||||||||||||
BALANCE JUNE 30, 2015 | 2,714,571 | $ | 4,009 | $ | 1,077 | $ | 63,852 | $ | (1,320 | ) | $ | (12,780 | ) | $ | (77,226 | ) | $ | 84,807 | $ | 631 | $ | 63,050 |
Amounts in millions; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ | 8,548 | $ | 5,930 | $ | 4,436 | |||||
OPERATING ACTIVITIES | |||||||||||
Net earnings | 7,144 | 11,785 | 11,402 | ||||||||
Depreciation and amortization | 3,134 | 3,141 | 2,982 | ||||||||
Share-based compensation expense | 337 | 360 | 346 | ||||||||
Deferred income taxes | (803 | ) | (44 | ) | (307 | ) | |||||
Gain on sale and purchase of businesses | (766 | ) | (154 | ) | (916 | ) | |||||
Venezuela deconsolidation charge | 2,028 | — | — | ||||||||
Goodwill and indefinite-lived intangible asset impairment charges | 2,174 | — | 308 | ||||||||
Change in accounts receivable | 349 | 87 | (415 | ) | |||||||
Change in inventories | 313 | 8 | (225 | ) | |||||||
Change in accounts payable, accrued and other liabilities | 928 | 1 | 1,253 | ||||||||
Change in other operating assets and liabilities | (976 | ) | (1,557 | ) | 68 | ||||||
Other | 746 | 331 | 377 | ||||||||
TOTAL OPERATING ACTIVITIES | 14,608 | 13,958 | 14,873 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (3,736 | ) | (3,848 | ) | (4,008 | ) | |||||
Proceeds from asset sales | 4,498 | 577 | 567 | ||||||||
Cash related to deconsolidated Venezuela operations | (908 | ) | — | — | |||||||
Acquisitions, net of cash acquired | (137 | ) | (24 | ) | (1,145 | ) | |||||
Purchases of short-term investments | (3,647 | ) | (568 | ) | (1,605 | ) | |||||
Proceeds from sales of short-term investments | 1,203 | 24 | — | ||||||||
Change in other investments | (163 | ) | (261 | ) | (121 | ) | |||||
TOTAL INVESTING ACTIVITIES | (2,890 | ) | (4,100 | ) | (6,312 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Dividends to shareholders | (7,287 | ) | (6,911 | ) | (6,519 | ) | |||||
Change in short-term debt | (2,580 | ) | 3,304 | 3,406 | |||||||
Additions to long-term debt | 2,138 | 4,334 | 2,331 | ||||||||
Reductions of long-term debt | (3,512 | ) | (4,095 | ) | (3,752 | ) | |||||
Treasury stock purchases | (4,604 | ) | (6,005 | ) | (5,986 | ) | |||||
Impact of stock options and other | 2,826 | 2,094 | 3,449 | ||||||||
TOTAL FINANCING ACTIVITIES | (13,019 | ) | (7,279 | ) | (7,071 | ) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (411 | ) | 39 | 4 | |||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (1,712 | ) | 2,618 | 1,494 | |||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 6,836 | $ | 8,548 | $ | 5,930 | |||||
SUPPLEMENTAL DISCLOSURE | |||||||||||
Cash payments for: | |||||||||||
Interest | $ | 678 | $ | 686 | $ | 683 | |||||
Income taxes | 4,558 | 3,320 | 3,780 | ||||||||
Assets acquired through non-cash capital leases are immaterial for all periods. |
Beauty | Grooming | Health Care | Fabric Care and Home Care | Baby, Feminine and Family Care | Corporate | Total Company | |||||||||||||||
GOODWILL at JUNE 30, 2013 - Gross | $ | 13,759 | $ | 21,775 | $ | 6,185 | $ | 1,973 | $ | 4,828 | $ | 4,922 | $ | 53,442 | |||||||
Accumulated impairment losses at June 30, 2013 | — | (1,158 | ) | — | — | — | — | (1,158 | ) | ||||||||||||
GOODWILL at JUNE 30, 2013 - Net | 13,759 | 20,617 | 6,185 | 1,973 | 4,828 | 4,922 | 52,284 | ||||||||||||||
Acquisitions and divestitures | — | — | — | (3 | ) | — | (2,445 | ) | (2,448 | ) | |||||||||||
Goodwill impairment charges | — | — | — | — | — | — | — | ||||||||||||||
Translation and other | 306 | 322 | 95 | 11 | 82 | 77 | 893 | ||||||||||||||
GOODWILL at JUNE 30, 2014 - Gross | 14,065 | 22,097 | 6,280 | 1,981 | 4,910 | 2,554 | 51,887 | ||||||||||||||
Accumulated impairment losses at June 30, 2014 | — | (1,158 | ) | — | — | — | — | (1,158 | ) | ||||||||||||
GOODWILL at JUNE 30, 2014 - Net | 14,065 | 20,939 | 6,280 | 1,981 | 4,910 | 2,554 | 50,729 | ||||||||||||||
Acquisitions and divestitures | (136 | ) | — | (6 | ) | (3 | ) | — | (449 | ) | (594 | ) | |||||||||
Goodwill impairment charges | — | — | — | — | — | (2,064 | ) | (2,064 | ) | ||||||||||||
Translation and other | (1,225 | ) | (1,320 | ) | (398 | ) | (104 | ) | (361 | ) | (41 | ) | (3,449 | ) | |||||||
GOODWILL at JUNE 30, 2015 - Gross | 12,704 | 20,777 | 5,876 | 1,874 | 4,549 | 2,064 | 47,844 | ||||||||||||||
Accumulated impairment losses at June 30, 2015 | — | (1,158 | ) | — | — | — | (2,064 | ) | (3,222 | ) | |||||||||||
GOODWILL at JUNE 30, 2015 - Net | $ | 12,704 | $ | 19,619 | $ | 5,876 | $ | 1,874 | $ | 4,549 | $ | — | $ | 44,622 |
2015 | 2014 | ||||||||||||
Years ended June 30 | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||
INTANGIBLE ASSETS WITH DETERMINABLE LIVES | |||||||||||||
Brands | $ | 3,039 | $ | (1,721 | ) | $ | 3,372 | $ | (1,672 | ) | |||
Patents and technology | $ | 2,619 | $ | (2,028 | ) | $ | 2,839 | $ | (2,072 | ) | |||
Customer relationships | $ | 1,395 | $ | (464 | ) | $ | 1,732 | $ | (543 | ) | |||
Other | $ | 252 | $ | (123 | ) | $ | 287 | $ | (128 | ) | |||
TOTAL | $ | 7,305 | $ | (4,336 | ) | $ | 8,230 | $ | (4,415 | ) | |||
INTANGIBLE ASSETS WITH INDEFINITE LIVES | |||||||||||||
Brands | $ | 22,041 | $ | 24,914 | |||||||||
TOTAL | $ | 29,346 | $ | (4,336 | ) | $ | 33,144 | $ | (4,415 | ) |
Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
Intangible asset amortization | $ | 457 | $ | 514 | $ | 528 |
Years ending June 30 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||
Estimated amortization expense | $ | 388 | $ | 316 | $ | 291 | $ | 273 | $ | 246 |
Years ended June 30 | 2015 | 2014 | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Buildings | $ | 6,949 | $ | 7,733 | |||
Machinery and equipment | 29,420 | 31,361 | |||||
Land | 763 | 855 | |||||
Construction in progress | 2,931 | 3,048 | |||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | 40,063 | 42,997 | |||||
Accumulated depreciation | (20,408 | ) | (21,390 | ) | |||
PROPERTY, PLANT AND EQUIPMENT, NET | $ | 19,655 | $ | 21,607 |
Years ended June 30 | 2015 | 2014 | |||||
ACCRUED AND OTHER LIABILITIES - CURRENT | |||||||
Marketing and promotion | $ | 2,798 | $ | 3,176 | |||
Compensation expenses | 1,390 | 1,575 | |||||
Restructuring reserves | 389 | 381 | |||||
Taxes payable | 845 | 711 | |||||
Legal and environmental | 205 | 395 | |||||
Other | 2,464 | 2,496 | |||||
TOTAL | $ | 8,091 | $ | 8,734 | |||
OTHER NONCURRENT LIABILITIES | |||||||
Pension benefits | $ | 5,247 | $ | 5,622 | |||
Other postretirement benefits | 1,414 | 1,906 | |||||
Uncertain tax positions | 1,016 | 1,843 | |||||
Other | 755 | 770 | |||||
TOTAL | $ | 8,432 | $ | 10,141 |
Amounts in millions | Separations | Asset-Related Costs | Other | Total | ||||||||
RESERVE JUNE 30, 2013 | $ | 296 | $ | — | $ | 27 | $ | 323 | ||||
Charges | 378 | 179 | 249 | 806 | ||||||||
Cash spent | (321 | ) | — | (248 | ) | (569 | ) | |||||
Charges against assets | — | (179 | ) | — | (179 | ) | ||||||
RESERVE JUNE 30, 2014 | 353 | — | 28 | 381 | ||||||||
Charges | 516 | 289 | 263 | 1,068 | ||||||||
Cash spent | (507 | ) | — | (264 | ) | (771 | ) | |||||
Charges against assets | — | (289 | ) | — | (289 | ) | ||||||
RESERVE JUNE 30, 2015 | $ | 362 | $ | — | $ | 27 | $ | 389 |
Years ended June 30 | 2015 | 2014 | |||||
Beauty | $ | 63 | $ | 46 | |||
Grooming | 57 | 20 | |||||
Health Care | 32 | 10 | |||||
Fabric Care and Home Care | 197 | 119 | |||||
Baby, Feminine and Family Care | 192 | 155 | |||||
Corporate (1) | 527 | 456 | |||||
Total Company | $ | 1,068 | $ | 806 |
(1) | Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities and costs related to discontinued operations from our Pet Care, Batteries and affected beauty businesses. |
Years ended June 30 | 2015 | 2014 | |||||
DEBT DUE WITHIN ONE YEAR | |||||||
Current portion of long-term debt | $ | 2,772 | $ | 4,307 | |||
Commercial paper | 8,807 | 10,818 | |||||
Other | 439 | 475 | |||||
TOTAL | $ | 12,018 | $ | 15,600 | |||
Short-term weighted average interest rates (1) | 0.3 | % | 0.7 | % |
(1) | Short-term weighted average interest rates include the effects of interest rate swaps discussed in Note 5. |
Years ended June 30 | 2015 | 2014 | |||
LONG-TERM DEBT | |||||
3.15% USD note due September 2015 | 500 | 500 | |||
1.80% USD note due November 2015 | 1,000 | 1,000 | |||
4.85% USD note due December 2015 | 700 | 700 | |||
1.45% USD note due August 2016 | 1,000 | 1,000 | |||
0.75% USD note due November 2016 | 500 | 500 | |||
Floating rate USD note due November 2016 | 500 | 500 | |||
5.13% EUR note due October 2017 | 1,231 | 1,501 | |||
1.60% USD note due November 2018 | 1,000 | 1,000 | |||
4.70% USD note due February 2019 | 1,250 | 1,250 | |||
1.90% USD note due November 2019 | 550 | — | |||
0.28% JPY note due May 2020 | 818 | — | |||
4.13% EUR note due December 2020 | 671 | 819 | |||
9.36% ESOP debentures due 2015-2021 (1) | 572 | 640 | |||
2.00% EUR note due November 2021 | 839 | 1,023 | |||
2.30% USD note due February 2022 | 1,000 | 1,000 | |||
2.00% EUR note due August 2022 | 1,119 | 1,365 | |||
3.10% USD note due August 2023 | 1,000 | 1,000 | |||
4.88% EUR note due May 2027 | 1,119 | 1,365 | |||
6.25% GBP note due January 2030 | 786 | 851 | |||
5.50% USD note due February 2034 | 500 | 500 | |||
5.80% USD note due August 2034 | 600 | 600 | |||
5.55% USD note due March 2037 | 1,400 | 1,400 | |||
Capital lease obligations | 52 | 83 | |||
All other long-term debt | 2,392 | 5,517 | |||
Current portion of long-term debt | (2,772 | ) | (4,307 | ) | |
TOTAL | $18,327 | $19,807 | |||
Long-term weighted average interest rates (2) | 3.2 | % | 3.2 | % |
(1) | Debt issued by the ESOP is guaranteed by the Company and must be recorded as debt of the Company, as discussed in Note 9. |
(2) | Long-term weighted average interest rates include the effects of interest rate swaps discussed in Note 5. |
Years ending June 30 | 2016 | 2017 | 2018 | 2019 | 2020 |
Debt maturities | $2,772 | $2,094 | $1,330 | $2,353 | $1,929 |
• | Level 1: Quoted market prices in active markets for identical assets or liabilities. |
• | Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. |
• | Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
ASSETS RECORDED AT FAIR VALUE | |||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||
U.S. government securities | $ | — | $ | — | $ | 3,495 | $ | 1,631 | $ | — | $ | — | $ | 3,495 | $ | 1,631 | |||||||||||||||
Corporate bond securities | — | — | 1,272 | 497 | — | — | 1,272 | 497 | |||||||||||||||||||||||
Other investments | 6 | 6 | — | — | 24 | 24 | 30 | 30 | |||||||||||||||||||||||
Derivatives relating to: | |||||||||||||||||||||||||||||||
Foreign currency hedges | — | — | 312 | 187 | — | — | 312 | 187 | |||||||||||||||||||||||
Other foreign currency instruments (1) | — | — | 13 | 24 | — | — | 13 | 24 | |||||||||||||||||||||||
Interest rates | — | — | 172 | 197 | — | — | 172 | 197 | |||||||||||||||||||||||
Net investment hedges | — | — | 96 | 49 | — | — | 96 | 49 | |||||||||||||||||||||||
TOTAL ASSETS RECORDED AT FAIR VALUE (2) | $ | 6 | $ | 6 | $ | 5,360 | $ | 2,585 | $ | 24 | $ | 24 | $ | 5,390 | $ | 2,615 | |||||||||||||||
LIABILITIES RECORDED AT FAIR VALUE | |||||||||||||||||||||||||||||||
Derivatives relating to: | |||||||||||||||||||||||||||||||
Other foreign currency instruments (1) | $ | — | $ | — | $ | 68 | $ | 66 | $ | — | $ | — | $ | 68 | $ | 66 | |||||||||||||||
Interest rates | — | — | 13 | 29 | — | — | 13 | 29 | |||||||||||||||||||||||
Net investment hedges | — | — | 1 | 1 | — | — | 1 | 1 | |||||||||||||||||||||||
TOTAL LIABILITIES RECORDED AT FAIR VALUE (3) | $ | — | $ | — | $ | 82 | $ | 96 | $ | — | $ | — | $ | 82 | $ | 96 | |||||||||||||||
FAIR VALUE OF LONG-TERM DEBT (4) | $ | 20,947 | $ | 24,747 | $ | 2,180 | $ | 1,678 | $ | — | $ | — | $ | 23,127 | $ | 26,425 |
(1) | Other foreign currency instruments are comprised of foreign currency financial instruments that do not qualify as hedges. |
(2) | All derivative assets are presented in Prepaid expenses and other current assets and Other noncurrent assets. Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of the U.S. government securities with maturities less than one year was $700 and $0 as of June 30, 2015 and 2014, respectively. The amortized cost of the U.S. government securities with maturities between one and five years was $2,789 and $1,649 as of June 30, 2015 and 2014, respectively. The amortized cost of Corporate bond securities with maturities of less than a year was $221 and $39 as of June 30, 2015 and 2014, respectively. The amortized cost of Corporate bond securities with maturities between one and five years was $1,052 and $458 as of June 30, 2015 and 2014, respectively. Fair values are generally estimated based upon quoted market prices for similar instruments. |
(3) | All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. |
(4) | Long-term debt includes the current portion ($2,776 and $4,400 as of June 30, 2015 and 2014, respectively) of debt instruments. Certain long-term debt is recorded at fair value. Certain long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Fair values are generally estimated based on quoted market prices for identical or similar instruments. |
Years ended June 30 | Notional Amount | Fair Value Asset/(Liability) | |||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | |||||||||||||
Foreign currency contracts | $ | 951 | $ | 951 | $ | 312 | $ | 187 | |||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||||||||
Interest rate contracts | $ | 7,208 | $ | 9,738 | $ | 159 | $ | 168 | |||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | |||||||||||||
Net investment hedges | $ | 537 | $ | 831 | $ | 95 | $ | 48 | |||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||||||
Foreign currency contracts | $ | 6,610 | $ | 12,111 | $ | (55 | ) | $ | (42 | ) |
Amount of Gain/(Loss) Recognized in AOCI on Derivatives (Effective Portion) | |||||||
Years ended June 30 | 2015 | 2014 | |||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | |||||||
Interest rate contracts | $ | (1 | ) | $ | 3 | ||
Foreign currency contracts | 5 | 14 | |||||
TOTAL | $ | 4 | $ | 17 | |||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | |||||||
Net investment hedges | $ | 60 | $ | 30 |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | |||||||
Years ended June 30 | 2015 | 2014 | |||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | |||||||
Interest rate contracts | $ | 6 | $ | 6 | |||
Foreign currency contracts | 152 | 38 | |||||
TOTAL | $ | 158 | $ | 44 |
Amount of Gain/(Loss) Recognized in Earnings | |||||||
Years ended June 30 | 2015 | 2014 | |||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||
Interest rate contracts | $ | (9 | ) | $ | 36 | ||
Debt | 9 | (37 | ) | ||||
TOTAL | $ | — | $ | (1 | ) | ||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | |||||||
Net investment hedges | $ | (1 | ) | $ | — | ||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||
Foreign currency contracts (1) | $ | (987 | ) | $ | 123 |
(1) | The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure. |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | |||||||||||||||||||
Hedges | Investment Securities | Pension and Other Retiree Benefits | Financial Statement Translation | Total | |||||||||||||||
BALANCE at JUNE 30, 2013 | $ | (3,529 | ) | $ | (27 | ) | $ | (4,296 | ) | $ | 353 | $ | (7,499 | ) | |||||
OCI before reclassifications (1) | (305 | ) | 20 | (1,113 | ) | 1,044 | (354 | ) | |||||||||||
Amounts reclassified from AOCI (2) (5) | (42 | ) | (11 | ) | 244 | — | 191 | ||||||||||||
Net current period OCI | (347 | ) | 9 | (869 | ) | 1,044 | (163 | ) | |||||||||||
BALANCE at JUNE 30, 2014 | (3,876 | ) | (18 | ) | (5,165 | ) | 1,397 | (7,662 | ) | ||||||||||
OCI before reclassifications (3) | 1,390 | 26 | 563 | (7,475 | ) | (5,496 | ) | ||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | (156 | ) | (2 | ) | 281 | 255 | 378 | ||||||||||||
Net current period OCI | 1,234 | 24 | 844 | (7,220 | ) | (5,118 | ) | ||||||||||||
BALANCE at JUNE 30, 2015 | $ | (2,642 | ) | $ | 6 | $ | (4,321 | ) | $ | (5,823 | ) | $ | (12,780 | ) |
(1) | Net of tax (benefit)/expense of $(207), $3 and $(450) for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively, for the period ended June 30, 2014. |
(2) | Net of tax (benefit)/expense of $(2), $(7), and $94 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively, for the period ended June 30, 2014. |
(3) | Net of tax (benefit)/expense of $741, $1, and $219 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively, for the period ended June 30, 2015. |
(4) | Net of tax (benefit)/expense of $(2), $(1), and $109 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively, for the period ended June 30, 2015. |
(5) | See Note 5 for classification of gains and losses from hedges in the Consolidated Statements of Earnings. Gains and losses on investment securities are reclassified from AOCI into Other non-operating income, net. Gains and losses on pension and other retiree benefits are reclassified from AOCI into Cost of products sold and SG&A, and are included in the computation of net periodic pension cost (see Note 9 for additional details). |
(6) | Amounts reclassified from AOCI for financial statement translation relate to the foreign currency losses written off as part of the deconsolidation of our Venezuelan subsidiaries. These losses were reclassified into Venezuela deconsolidation charge on the Consolidated Statements of Earnings. |
Years ended June 30 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||
CONSOLIDATED AMOUNTS | Continuing Operations | Dis-continued Operations | Total | Continuing Operations | Dis-continued Operations | Total | Continuing Operations | Dis-continued Operations | Total | ||||||||||||||||||||
Net earnings/(loss) | $ | 8,287 | $ | (1,143 | ) | $ | 7,144 | $ | 10,658 | $ | 1,127 | $ | 11,785 | $ | 10,346 | $ | 1,056 | $ | 11,402 | ||||||||||
Net earnings attributable to noncontrolling interests | (98 | ) | (10 | ) | (108 | ) | (120 | ) | (22 | ) | (142 | ) | (92 | ) | 2 | (90 | ) | ||||||||||||
Net earnings/(loss) attributable to P&G (Diluted) | 8,189 | (1,153 | ) | 7,036 | 10,538 | 1,105 | 11,643 | 10,254 | 1,058 | 11,312 | |||||||||||||||||||
Preferred dividends, net of tax | (259 | ) | — | (259 | ) | (253 | ) | — | (253 | ) | (244 | ) | — | (244 | ) | ||||||||||||||
Net earnings/(loss) attributable to P&G available to common shareholders (Basic) | $ | 7,930 | $ | (1,153 | ) | $ | 6,777 | $ | 10,285 | $ | 1,105 | $ | 11,390 | $ | 10,010 | $ | 1,058 | $ | 11,068 | ||||||||||
SHARES IN MILLIONS | |||||||||||||||||||||||||||||
Basic weighted average common shares outstanding | 2,711.7 | 2,711.7 | 2,711.7 | 2,719.8 | 2,719.8 | 2,719.8 | 2,742.9 | 2,742.9 | 2,742.9 | ||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||||||||
Conversion of preferred shares(1) | 108.6 | 108.6 | 108.6 | 112.3 | 112.3 | 112.3 | 116.8 | 116.8 | 116.8 | ||||||||||||||||||||
Exercise of stock options and other unvested equity awards (2) | 63.3 | 63.3 | 63.3 | 72.6 | 72.6 | 72.6 | 70.9 | 70.9 | 70.9 | ||||||||||||||||||||
Diluted weighted average common shares outstanding | 2,883.6 | 2,883.6 | 2,883.6 | 2,904.7 | 2,904.7 | 2,904.7 | 2,930.6 | 2,930.6 | 2,930.6 | ||||||||||||||||||||
PER SHARE AMOUNTS | |||||||||||||||||||||||||||||
Basic net earnings/(loss) per common share (3) | $ | 2.92 | $ | (0.42 | ) | $ | 2.50 | $ | 3.78 | $ | 0.41 | $ | 4.19 | $ | 3.65 | $ | 0.39 | $ | 4.04 | ||||||||||
Diluted net earnings/(loss) per common share (3) | $ | 2.84 | $ | (0.40 | ) | $ | 2.44 | $ | 3.63 | $ | 0.38 | $ | 4.01 | $ | 3.50 | $ | 0.36 | $ | 3.86 |
(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) | Approximately 8 million in 2015, 9 million in 2014 and 12 million in 2013 of the Company's outstanding stock options were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). |
(3) | Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings/(loss) attributable to Procter & Gamble. |
Years ended June 30 | 2015 | 2014 | 2013 | |||||||||||
Interest rate | 0.1 | - | 2.1 | % | 0.1 | - | 2.8 | % | 0.2 | - | 2.0 | % | ||
Weighted average interest rate | 2.0 | % | 2.5 | % | 1.8 | % | ||||||||
Dividend yield | 3.1 | % | 3.1 | % | 2.9 | % | ||||||||
Expected volatility | 11 | - | 15 | % | 15 | - | 17 | % | 14 | - | 15 | % | ||
Weighted average volatility | 15 | % | 16 | % | 15 | % | ||||||||
Expected life in years | 8.3 | 8.2 | 8.9 |
Options | Options (in thousands) | Weighted Avg. Exercise Price | Weighted Avg. Contract-ual Life in Years | Aggregate Intrinsic Value | |||||
Outstanding, beginning of year | 291,626 | $ | 59.74 | ||||||
Granted | 23,066 | 84.97 | |||||||
Exercised | (53,294 | ) | 50.60 | ||||||
Canceled | (1,106 | ) | 70.46 | ||||||
OUTSTANDING, END OF YEAR | 260,292 | $ | 63.74 | 4.9 | $ | 3,971 | |||
EXERCISABLE | 188,959 | $ | 57.68 | 3.4 | $ | 3,895 |
RSUs | PSUs | ||||||||||
Other stock-based awards | Units (in thousands) | Weighted-Average Grant-Date Fair Value | Units (in thousands) | Weighted-Average Grant-Date Fair Value | |||||||
Non-vested at July 1, 2014 | 4,902 | $ | 61.74 | 1,883 | $ | 66.53 | |||||
Granted | 1,451 | 69.25 | 575 | 77.47 | |||||||
Vested | (1,212 | ) | 59.22 | (1,251 | ) | 63.96 | |||||
Forfeited | (133 | ) | 64.74 | (19 | ) | 69.82 | |||||
Non-vested at June 30, 2015 | 5,008 | $ | 64.78 | 1,188 | $ | 74.48 |
Pension Benefits (1) | Other Retiree Benefits (2) | ||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | |||||||||||
CHANGE IN BENEFIT OBLIGATION | |||||||||||||||
Benefit obligation at beginning of year (3) | $ | 17,053 | $ | 14,514 | $ | 5,505 | $ | 5,289 | |||||||
Service cost | 317 | 298 | 156 | 149 | |||||||||||
Interest cost | 545 | 590 | 240 | 256 | |||||||||||
Participants' contributions | 19 | 20 | 71 | 72 | |||||||||||
Amendments | 17 | 4 | (325 | ) | (5 | ) | |||||||||
Actuarial loss/(gain) | 524 | 1,365 | (399 | ) | (46 | ) | |||||||||
Acquisitions | 7 | — | — | — | |||||||||||
Special termination benefits | 11 | 5 | 23 | 9 | |||||||||||
Currency translation and other | (1,908 | ) | 797 | (134 | ) | 20 | |||||||||
Benefit payments | (634 | ) | (540 | ) | (233 | ) | (239 | ) | |||||||
BENEFIT OBLIGATION AT END OF YEAR (3) | $ | 15,951 | $ | 17,053 | $ | 4,904 | $ | 5,505 |
CHANGE IN PLAN ASSETS | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 11,098 | $ | 8,561 | $ | 3,574 | $ | 3,553 | |||||||
Actual return on plan assets | 1,016 | 964 | 10 | 124 | |||||||||||
Employer contributions | 262 | 1,549 | 18 | 31 | |||||||||||
Participants' contributions | 19 | 20 | 71 | 72 | |||||||||||
Currency translation and other | (1,156 | ) | 544 | (6 | ) | — | |||||||||
ESOP debt impacts (4) | — | — | 36 | 33 | |||||||||||
Benefit payments | (634 | ) | (540 | ) | (233 | ) | (239 | ) | |||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 10,605 | $ | 11,098 | $ | 3,470 | $ | 3,574 | |||||||
Reclassification of net obligation to held for sale liabilities | 336 | 362 | — | — | |||||||||||
FUNDED STATUS | $ | (5,010 | ) | $ | (5,593 | ) | $ | (1,434 | ) | $ | (1,931 | ) |
(1) | Primarily non-U.S.-based defined benefit retirement plans. |
(2) | Primarily U.S.-based other postretirement benefit plans. |
(3) | For the pension benefit plans, the benefit obligation is the projected benefit obligation. For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. |
(4) | Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits. |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | |||||||||||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | |||||||||||||||
Noncurrent assets | $ | 276 | $ | 69 | $ | — | $ | — | |||||||
Current liabilities | (39 | ) | (40 | ) | (20 | ) | (25 | ) | |||||||
Noncurrent liabilities | (5,247 | ) | (5,622 | ) | (1,414 | ) | (1,906 | ) | |||||||
NET AMOUNT RECOGNIZED | $ | (5,010 | ) | $ | (5,593 | ) | $ | (1,434 | ) | $ | (1,931 | ) | |||
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | |||||||||||||||
Net actuarial loss | $ | 4,488 | $ | 5,169 | $ | 1,731 | $ | 1,871 | |||||||
Prior service cost/(credit) | 300 | 344 | (346 | ) | (39 | ) | |||||||||
NET AMOUNTS RECOGNIZED IN AOCI | $ | 4,788 | $ | 5,513 | $ | 1,385 | $ | 1,832 |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | |||||||||||
Projected benefit obligation | $ | 13,411 | $ | 14,229 | $ | 14,057 | $ | 15,325 | |||||||
Accumulated benefit obligation | 11,918 | 12,406 | 12,419 | 13,279 | |||||||||||
Fair value of plan assets | 7,931 | 8,353 | 8,435 | 9,301 |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||||||
Years ended June 30 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | |||||||||||||||||||||||
Service cost | $ | 317 | $ | 298 | $ | 300 | $ | 156 | $ | 149 | $ | 190 | |||||||||||
Interest cost | 545 | 590 | 560 | 240 | 256 | 260 | |||||||||||||||||
Expected return on plan assets | (732 | ) | (701 | ) | (587 | ) | (406 | ) | (385 | ) | (382 | ) | |||||||||||
Prior service cost/(credit) amortization | 30 | 26 | 18 | (20 | ) | (20 | ) | (20 | ) | ||||||||||||||
Net actuarial loss amortization | 275 | 214 | 213 | 105 | 118 | 199 | |||||||||||||||||
Special termination benefits | 11 | 5 | 39 | 23 | 9 | 18 | |||||||||||||||||
Curtailments, settlements and other | — | — | 4 | — | — | — | |||||||||||||||||
GROSS BENEFIT COST | 446 | 432 | 547 | 98 | 127 | 265 | |||||||||||||||||
Dividends on ESOP preferred stock | — | — | — | (58 | ) | (64 | ) | (70 | ) | ||||||||||||||
NET PERIODIC BENEFIT COST/(CREDIT) | $ | 446 | $ | 432 | $ | 547 | $ | 40 | $ | 63 | $ | 195 | |||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | |||||||||||||||||||||||
Net actuarial loss/(gain) - current year | $ | 240 | $ | 1,102 | $ | (3 | ) | $ | 215 | ||||||||||||||
Prior service cost/(credit) - current year | 17 | 4 | (325 | ) | (5 | ) | |||||||||||||||||
Amortization of net actuarial loss | (275 | ) | (214 | ) | (105 | ) | (118 | ) | |||||||||||||||
Amortization of prior service (cost)/credit | (30 | ) | (26 | ) | 20 | 20 | |||||||||||||||||
Currency translation and other | (677 | ) | 245 | (34 | ) | 2 | |||||||||||||||||
TOTAL CHANGE IN AOCI | (725 | ) | 1,111 | (447 | ) | 114 | |||||||||||||||||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | $ | (279 | ) | $ | 1,543 | $ | (407 | ) | $ | 177 |
Pension Benefits | Other Retiree Benefits | ||||||
Net actuarial loss | $ | 270 | $ | 78 | |||
Prior service cost/(credit) | 30 | (52 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Discount rate | 3.1 | % | 3.5 | % | 4.5 | % | 4.4 | % | |||
Rate of compensation increase | 3.1 | % | 3.2 | % | N/A | N/A | |||||
Health care cost trend rates assumed for next year | N/A | N/A | 6.8 | % | 6.8 | % | |||||
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | N/A | N/A | 5.0 | % | 5.0 | % | |||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | 2021 | 2021 |
(1) | Determined as of end of year. |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||
Years ended June 30 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||
Discount rate | 3.5 | % | 4.0 | % | 4.2 | % | 4.4 | % | 4.8 | % | 4.3 | % | |||||
Expected return on plan assets | 7.2 | % | 7.2 | % | 7.3 | % | 8.3 | % | 8.3 | % | 8.3 | % | |||||
Rate of compensation increase | 3.2 | % | 3.2 | % | 3.3 | % | N/A | N/A | N/A |
(1) | Determined as of beginning of year and adjusted for acquisitions. |
One-Percentage Point Increase | One-Percentage Point Decrease | ||||||
Effect on the total service and interest cost components | $ | 81 | $ | (62 | ) | ||
Effect on the accumulated postretirement benefit obligation | 824 | (642 | ) |
Target Asset Allocation | Actual Asset Allocation at June 30 | ||||||||||||||||
Pension Benefits | Other Retiree Benefits | Pension Benefits | Other Retiree Benefits | ||||||||||||||
Asset Category | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Cash | 2 | % | 2 | % | 2 | % | 1 | % | 1 | % | 1 | % | |||||
Debt securities | 51 | % | 3 | % | 50 | % | 51 | % | 5 | % | 6 | % | |||||
Equity securities | 47 | % | 95 | % | 48 | % | 48 | % | 94 | % | 93 | % | |||||
TOTAL | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Pension Benefits | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
ASSETS AT FAIR VALUE | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 154 | $ | 79 | $ | 112 | $ | — | $ | — | $ | — | $ | 266 | $ | 79 | |||||||||||||||
Collective fund - equity | — | — | 5,054 | 5,336 | — | — | 5,054 | 5,336 | |||||||||||||||||||||||
Collective fund - fixed income | — | — | 5,162 | 5,539 | — | — | 5,162 | 5,539 | |||||||||||||||||||||||
Other | 4 | 5 | — | — | 119 | 139 | 123 | 144 | |||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | $ | 158 | $ | 84 | $ | 10,328 | $ | 10,875 | $ | 119 | $ | 139 | $ | 10,605 | $ | 11,098 |
Other Retiree Benefits | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Years ended June 30 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
ASSETS AT FAIR VALUE | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 36 | $ | 30 | $ | — | $ | — | $ | — | $ | — | $ | 36 | $ | 30 | |||||||||||||||
Company stock | — | — | 3,239 | 3,304 | — | — | 3,239 | 3,304 | |||||||||||||||||||||||
Common collective fund - equity | — | — | 17 | 18 | — | — | 17 | 18 | |||||||||||||||||||||||
Common collective fund - fixed income | — | — | 178 | 217 | — | — | 178 | 217 | |||||||||||||||||||||||
Other | — | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | $ | 36 | $ | 30 | $ | 3,434 | $ | 3,539 | $ | — | $ | 5 | $ | 3,470 | $ | 3,574 |
Years ending June 30 | Pension Benefits | Other Retiree Benefits | |||||
EXPECTED BENEFIT PAYMENTS | |||||||
2016 | $ | 533 | $ | 182 | |||
2017 | 542 | 196 | |||||
2018 | 560 | 210 | |||||
2019 | 572 | 223 | |||||
2020 | 587 | 235 | |||||
2021 - 2025 | 3,403 | 1,334 |
Shares in thousands | 2015 | 2014 | 2013 | |||||
Allocated | 42,044 | 44,465 | 45,535 | |||||
Unallocated | 7,228 | 8,474 | 9,843 | |||||
TOTAL SERIES A | 49,272 | 52,939 | 55,378 | |||||
Allocated | 23,074 | 22,085 | 21,278 | |||||
Unallocated | 34,096 | 35,753 | 37,300 | |||||
TOTAL SERIES B | 57,170 | 57,838 | 58,578 |
Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
United States | $ | 8,496 | $ | 8,513 | $ | 7,736 | |||||
International | 2,516 | 4,996 | 5,672 | ||||||||
TOTAL | $ | 11,012 | $ | 13,509 | $ | 13,408 |
Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
CURRENT TAX EXPENSE | |||||||||||
U.S. federal | $ | 2,127 | $ | 1,399 | $ | 1,629 | |||||
International | 1,142 | 1,252 | 1,452 | ||||||||
U.S. state and local | 252 | 237 | 278 | ||||||||
3,521 | 2,888 | 3,359 | |||||||||
DEFERRED TAX EXPENSE | |||||||||||
U.S. federal | (607 | ) | 145 | 187 | |||||||
International and other | (189 | ) | (182 | ) | (484 | ) | |||||
(796 | ) | (37 | ) | (297 | ) | ||||||
TOTAL TAX EXPENSE | $ | 2,725 | $ | 2,851 | $ | 3,062 |
Years ended June 30 | 2015 | 2014 | 2013 | |||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Country mix impacts of foreign operations | (14.0 | )% | (10.8 | )% | (7.4 | )% | ||
Changes in uncertain tax positions | (0.9 | )% | (1.7 | )% | (2.0 | )% | ||
Impairment adjustments | — | % | — | % | 0.7 | % | ||
Holding gain on joint venture buy-out | — | % | — | % | (1.5 | )% | ||
Venezuela deconsolidation charge | 6.6 | % | — | % | — | % | ||
Other | (2.0 | )% | (1.4 | )% | (2.0 | )% | ||
EFFECTIVE INCOME TAX RATE | 24.7 | % | 21.1 | % | 22.8 | % |
Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
BEGINNING OF YEAR | $ | 1,437 | $ | 1,600 | $ | 1,773 | |||||
Increases in tax positions for prior years | 87 | 146 | 162 | ||||||||
Decreases in tax positions for prior years | (146 | ) | (296 | ) | (225 | ) | |||||
Increases in tax positions for current year | 118 | 142 | 188 | ||||||||
Settlements with taxing authorities | (250 | ) | (135 | ) | (195 | ) | |||||
Lapse in statute of limitations | (27 | ) | (33 | ) | (98 | ) | |||||
Currency translation | (123 | ) | 13 | (5 | ) | ||||||
END OF YEAR | $ | 1,096 | $ | 1,437 | $ | 1,600 |
Years ended June 30 | 2015 | 2014 | |||||
DEFERRED TAX ASSETS | |||||||
Pension and postretirement benefits | $ | 1,739 | $ | 1,938 | |||
Loss and other carryforwards | 1,014 | 1,211 | |||||
Stock-based compensation | 949 | 1,060 | |||||
Advance payments | 281 | — | |||||
Accrued marketing and promotion | 266 | 258 | |||||
Unrealized loss on financial and foreign exchange transactions | 183 | 352 | |||||
Fixed assets | 139 | 115 | |||||
Inventory | 49 | 35 | |||||
Accrued interest and taxes | 48 | 66 | |||||
Goodwill and other intangible assets | 25 | 49 | |||||
Other | 814 | 809 | |||||
Valuation allowances | (324 | ) | (384 | ) | |||
TOTAL | $ | 5,183 | $ | 5,509 | |||
DEFERRED TAX LIABILITIES | |||||||
Goodwill and other intangible assets | $ | 9,530 | $ | 10,764 | |||
Fixed assets | 1,590 | 1,665 | |||||
Unrealized gain on financial and foreign exchange transactions | 353 | 43 | |||||
Other | 149 | 101 | |||||
TOTAL | $ | 11,622 | $ | 12,573 |
Years ending June 30 | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||
Purchase obligations | $ | 586 | $ | 280 | $ | 169 | $ | 132 | $ | 110 | $ | 230 |
Years ending June 30 | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||
Operating leases | $ | 249 | $ | 225 | $ | 210 | $ | 194 | $ | 177 | $ | 562 |
• | Beauty: Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); Hair Care; |
• | Grooming: Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Electronic Hair Removal; |
• | Health Care: Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); Oral Care (Toothbrush, Toothpaste, Other Oral Care); |
• | Fabric Care and Home Care: Fabric Care (Laundry Additives, Fabric Enhancers, Laundry Detergents); Home Care (Air Care, Dish Care, Surface Care, P&G Professional); and |
• | Baby, Feminine and Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper). |
% of Sales by Business Unit* | |||||
Years ended June 30 | 2015 | 2014 | 2013 | ||
Fabric Care | 22% | 22% | 22% | ||
Baby Care | 15% | 15% | 14% | ||
Hair Care | 11% | 11% | 11% | ||
Shave Care | 9% | 10% | 10% | ||
Home Care | 9% | 9% | 9% | ||
Family Care | 8% | 7% | 8% | ||
Oral Care | 8% | 7% | 7% | ||
Feminine Care | 6% | 6% | 6% | ||
Skin and Personal Care | 7% | 7% | 8% | ||
All Other | 5% | 6% | 5% | ||
TOTAL | 100% | 100% | 100% |
* | % of sales by business unit excludes sales held in Corporate. |
Global Segment Results | Net Sales | Earnings/(Loss) from Continuing Operations Before Income Taxes | Net Earnings/(Loss) from Continuing Operations | Depreciation and Amortization | Total Assets | Capital Expenditures | |||||||||||||||||||
BEAUTY | 2015 | $ | 12,608 | $ | 2,895 | $ | 2,181 | $ | 247 | $ | 4,699 | $ | 411 | ||||||||||||
2014 | 13,401 | 3,020 | 2,300 | 256 | 5,260 | 376 | |||||||||||||||||||
2013 | 13,754 | 2,717 | 2,042 | 239 | 5,240 | 439 | |||||||||||||||||||
GROOMING | 2015 | 7,441 | 2,374 | 1,787 | 540 | 23,090 | 372 | ||||||||||||||||||
2014 | 8,009 | 2,589 | 1,954 | 576 | 23,767 | 369 | |||||||||||||||||||
2013 | 8,038 | 2,458 | 1,837 | 603 | 23,971 | 378 | |||||||||||||||||||
HEALTH CARE | 2015 | 7,713 | 1,700 | 1,167 | 202 | 5,212 | 218 | ||||||||||||||||||
2014 | 7,798 | 1,597 | 1,083 | 199 | 5,879 | 253 | |||||||||||||||||||
2013 | 7,684 | 1,582 | 1,093 | 191 | 5,933 | 248 | |||||||||||||||||||
FABRIC CARE AND HOME CARE | 2015 | 22,274 | 4,059 | 2,634 | 547 | 7,155 | 986 | ||||||||||||||||||
2014 | 23,506 | 4,264 | 2,770 | 539 | 7,938 | 1,057 | |||||||||||||||||||
2013 | 23,393 | 4,378 | 2,834 | 544 | 7,658 | 985 | |||||||||||||||||||
BABY, FEMININE AND FAMILY CARE | 2015 | 20,247 | 4,317 | 2,938 | 924 | 10,109 | 1,337 | ||||||||||||||||||
2014 | 20,950 | 4,310 | 2,940 | 908 | 10,946 | 1,317 | |||||||||||||||||||
2013 | 20,479 | 4,507 | 3,047 | 837 | 10,926 | 1,560 | |||||||||||||||||||
CORPORATE (1) | 2015 | 466 | (4,333 | ) | (2,420 | ) | 674 | 79,230 | 412 | ||||||||||||||||
2014 | 737 | (2,271 | ) | (389 | ) | 663 | 90,476 | 476 | |||||||||||||||||
2013 | 562 | (2,234 | ) | (507 | ) | 568 | 85,535 | 398 | |||||||||||||||||
TOTAL COMPANY | 2015 | $ | 70,749 | $ | 11,012 | $ | 8,287 | $ | 3,134 | $ | 129,495 | $ | 3,736 | ||||||||||||
2014 | 74,401 | 13,509 | 10,658 | 3,141 | 144,266 | 3,848 | |||||||||||||||||||
2013 | 73,910 | 13,408 | 10,346 | 2,982 | 139,263 | 4,008 |
(1) | The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Pet Care business prior to its divestiture during fiscal year 2015 and of the Batteries and Beauty Brands businesses. |
Amounts in millions; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
Beauty Brands | $ | 643 | $ | 660 | $ | 607 | |||||
Batteries | (1,835 | ) | 389 | 348 | |||||||
Pet Care | 49 | 78 | 101 | ||||||||
Net earnings/(loss) from discontinued operations | $ | (1,143 | ) | $ | 1,127 | $ | 1,056 |
Amounts in millions; As of June 30 | 2015 | 2014 | |||||||||||||||||
Beauty Brands | Batteries | Total | Beauty Brands | Pet Care | Total | ||||||||||||||
Current assets held for sale | $ | 922 | $ | 3,510 | $ | 4,432 | $ | 1,096 | $ | 2,849 | $ | 3,945 | |||||||
Noncurrent assets held for sale | 5,204 | — | 5,204 | 5,811 | — | 5,811 | |||||||||||||
Total assets held for sale | $ | 6,126 | $ | 3,510 | $ | 9,636 | $ | 6,907 | $ | 2,849 | $ | 9,756 | |||||||
Current liabilities held for sale | $ | 356 | $ | 1,187 | $ | 1,543 | $ | 384 | $ | 660 | $ | 1,044 | |||||||
Noncurrent liabilities held for sale | 717 | — | 717 | 727 | — | 727 | |||||||||||||
Total liabilities held for sale | $ | 1,073 | $ | 1,187 | $ | 2,260 | $ | 1,111 | $ | 660 | $ | 1,771 |
Beauty Brands | |||||||||||
Amounts in millions; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
Net Sales | $ | 5,530 | $ | 6,109 | $ | 6,206 | |||||
Cost of products sold | 1,820 | 1,980 | 1,939 | ||||||||
Selling, general and administrative expense | 2,969 | 3,299 | 3,501 | ||||||||
Interest expense | — | 1 | (1 | ) | |||||||
Interest income | 2 | 2 | 3 | ||||||||
Other non-operating income/(loss), net | 91 | (3 | ) | 1 | |||||||
Earnings on discontinued operations before income taxes | $ | 834 | $ | 828 | $ | 771 | |||||
Income taxes on discontinued operations | 191 | 168 | 164 | ||||||||
Net earnings from discontinued operations | $ | 643 | $ | 660 | $ | 607 |
Beauty Brands | |||||||||||
Amounts in millions; Years ended June 30 | 2015 | 2014 | 2013 | ||||||||
SIGNIFICANT NON-CASH OPERATING ITEMS | |||||||||||
Depreciation and amortization | $ | 125 | $ | 127 | $ | 127 | |||||
(Gain)/loss on sale and/or purchase of businesses | $ | (86 | ) | $ | — | $ | — | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Capital expenditures | $ | (106 | ) | $ | (108 | ) | $ | (102 | ) |
Beauty Brands | |||||||
Amounts in millions; As of June 30 | 2015 | 2014 | |||||
Cash | $ | 9 | $ | 10 | |||
Accounts receivable | 293 | 352 | |||||
Inventories | 476 | 553 | |||||
Prepaid expenses and other assets | 144 | 181 | |||||
Total current assets held for sale | $ | 922 | $ | 1,096 | |||
Property, plant and equipment, net | 613 | 697 | |||||
Goodwill and intangible assets, net | 4,513 | 5,089 | |||||
Other noncurrent assets | 78 | 25 | |||||
Total noncurrent assets held for sale | $ | 5,204 | $ | 5,811 | |||
Total assets held for sale | $ | 6,126 | $ | 6,907 | |||
Accounts payable | $ | 118 | $ | 113 | |||
Accrued and other liabilities | 238 | 271 | |||||
Total current liabilities held for sale | $ | 356 | $ | 384 | |||
Noncurrent deferred tax liabilities | 352 | 329 | |||||
Other noncurrent liabilities | 365 | 398 | |||||
Total noncurrent liabilities held for sale | $ | 717 | $ | 727 | |||
Total liabilities held for sale | $ | 1,073 | $ | 1,111 |
Net Sales | Earnings Before Impairment Charges and Income Taxes | Impairment Charges | Income Tax Expense | Gain on Sale Before Income Taxes | Income Tax Expense on Sales | Net Earnings/(Loss) from Discontinued Operations | ||||||||||||||||||||||
Batteries | 2015 | $ | 2,226 | $ | 479 | $ | (2,174 | ) | $ | (140 | ) | $ | — | $ | — | $ | (1,835 | ) | ||||||||||
2014 | 2,552 | 548 | — | (159 | ) | — | — | 389 | ||||||||||||||||||||
2013 | 2,465 | 513 | — | (165 | ) | — | — | 348 | ||||||||||||||||||||
Pet Care | 2015 | 251 | — | — | (4 | ) | 195 | (142 | ) | 49 | ||||||||||||||||||
2014 | 1,475 | 130 | — | (52 | ) | — | — | 78 | ||||||||||||||||||||
2013 | 1,586 | 151 | — | (50 | ) | — | — | 101 | ||||||||||||||||||||
Total | 2015 | $ | 2,477 | $ | 479 | $ | (2,174 | ) | $ | (144 | ) | $ | 195 | $ | (142 | ) | $ | (1,786 | ) | |||||||||
2014 | 4,027 | 678 | — | (211 | ) | — | — | 467 | ||||||||||||||||||||
2013 | 4,051 | 664 | — | (215 | ) | — | — | 449 |
Batteries | Pet Care | ||||||
Amounts in millions; As of June 30 | 2015 | 2014 | |||||
Cash | $ | 25 | $ | — | |||
Accounts receivable | 245 | — | |||||
Inventories | 304 | 122 | |||||
Prepaid expenses and other assets | 28 | 14 | |||||
Property, plant and equipment, net | 496 | 441 | |||||
Goodwill and intangible assets, net | 2,389 | 2,258 | |||||
Other noncurrent assets | 23 | 14 | |||||
Total current assets held for sale | $ | 3,510 | $ | 2,849 | |||
Accounts payable | $ | 195 | $ | 63 | |||
Accrued and other liabilities | 194 | 13 | |||||
Long-term debt | 18 | — | |||||
Noncurrent deferred tax liabilities | 780 | 584 | |||||
Total current liabilities held for sale | $ | 1,187 | $ | 660 |
Quarters Ended | Sep 30 | Dec 31 | Mar 31 | Jun 30 | Total Year | ||||||||||||||||
NET SALES | 2014-2015 | $ | 18,771 | $ | 18,495 | $ | 16,930 | $ | 16,553 | $ | 70,749 | ||||||||||
2013-2014 | 18,756 | 19,299 | 18,231 | 18,115 | 74,401 | ||||||||||||||||
OPERATING INCOME (1) | 2014-2015 | 3,633 | 3,579 | 3,025 | 812 | 11,049 | |||||||||||||||
2013-2014 | 3,826 | 3,892 | 3,172 | 3,020 | 13,910 | ||||||||||||||||
GROSS MARGIN | 2014-2015 | 48.1 | % | 48.3 | % | 47.3 | % | 46.6 | % | 47.6 | % | ||||||||||
2013-2014 | 48.1 | % | 48.6 | % | 47.4 | % | 46.0 | % | 47.5 | % | |||||||||||
NET EARNINGS: | |||||||||||||||||||||
Net earnings from continuing operations (1) | 2014-2015 | $ | 2,716 | $ | 2,674 | $ | 2,401 | $ | 496 | $ | 8,287 | ||||||||||
2013-2014 | 2,824 | 2,955 | 2,429 | 2,450 | 10,658 | ||||||||||||||||
Net earnings/(loss) from discontinued operations | 2014-2015 | (696 | ) | (276 | ) | (213 | ) | 42 | (1,143 | ) | |||||||||||
2013-2014 | 233 | 517 | 207 | 170 | 1,127 | ||||||||||||||||
Net earnings attributable to Procter & Gamble | 2014-2015 | 1,990 | 2,372 | 2,153 | 521 | 7,036 | |||||||||||||||
2013-2014 | 3,027 | 3,428 | 2,609 | 2,579 | 11,643 | ||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE: (2) | |||||||||||||||||||||
Earnings from continuing operations | 2014-2015 | $ | 0.93 | $ | 0.92 | $ | 0.82 | $ | 0.17 | $ | 2.84 | ||||||||||
2013-2014 | 0.96 | 1.00 | 0.83 | 0.83 | 3.63 | ||||||||||||||||
Earnings/(loss) from discontinued operations | 2014-2015 | (0.24 | ) | (0.10 | ) | (0.07 | ) | 0.01 | (0.40 | ) | |||||||||||
2013-2014 | 0.08 | 0.18 | 0.07 | 0.06 | 0.38 | ||||||||||||||||
Net earnings | 2014-2015 | 0.69 | 0.82 | 0.75 | 0.18 | 2.44 | |||||||||||||||
2013-2014 | 1.04 | 1.18 | 0.90 | 0.89 | 4.01 |
(1) | The Company recorded a one-time Venezuela deconsolidation charge of $2.0 billion before tax ($2.1 billion after tax) in the quarter-ended June 30, 2015. This impact is discussed more fully in Note 1. |
(2) | Diluted net earnings per share is calculated on earnings attributable to Procter & Gamble. |
• | charge in 2015 related to the deconsolidation of our Venezuelan subsidiaries; |
• | charges for incremental restructuring due to increased focus on productivity and cost savings; |
• | charges for balance sheet impacts from the devaluation of the foreign currency exchange rate in Venezuela prior to deconsolidation; and |
• | charges for certain European legal matters. |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Fiscal Year Ended June 30, 2015 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 70,749 | — | — | — | — | — | — | 70,749 | |||||||||||||||
COST OF PRODUCTS SOLD | 37,056 | — | (518 | ) | — | — | — | (1 | ) | 36,537 | |||||||||||||
GROSS PROFIT | 33,693 | — | 518 | — | — | — | 1 | 34,212 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 20,616 | — | (103 | ) | (138 | ) | (28 | ) | 1 | 20,348 | |||||||||||||
VENEZUELA DECONSOLIDATION CHARGE | 2,028 | — | — | — | (2,028 | ) | — | — | — | ||||||||||||||
OPERATING INCOME | 11,049 | — | 621 | 138 | 2,028 | 28 | — | 13,864 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 11,012 | — | 621 | 138 | 2,028 | 28 | — | 13,827 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 2,725 | — | 145 | 34 | (24 | ) | — | (1 | ) | 2,879 | |||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 8,287 | — | 476 | 104 | 2,052 | 28 | 1 | 10,948 | |||||||||||||||
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS | (1,143 | ) | 1,143 | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 108 | (10 | ) | — | — | — | — | — | 98 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 7,036 | 1,153 | 476 | 104 | 2,052 | 28 | 1 | 10,850 | |||||||||||||||
GROSS MARGIN | 47.6 | % | — | % | 0.7 | % | — | % | — | % | — | % | 0.1 | % | 48.4 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 29.1 | % | — | % | (0.1 | )% | (0.2 | )% | — | % | — | % | — | % | 28.8 | % | |||||||
OPERATING PROFIT MARGIN | 15.6 | % | — | % | 0.9 | % | 0.2 | % | 2.9 | % | — | % | — | % | 19.6 | % | |||||||
EFFECTIVE TAX RATE | 24.7 | % | — | % | 0.1 | % | — | % | (4.0 | )% | — | % | — | % | 20.8 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 2.84 | — | 0.17 | 0.04 | 0.71 | 0.01 | (0.01 | ) | 3.76 | ||||||||||||||
LESS: CURRENCY IMPACT TO EARNINGS | (0.52 | ) | |||||||||||||||||||||
CURRENCY-NEUTRAL CORE EPS | 4.28 |
FY 15 CHANGE VERSUS YEAR AGO | ||
CORE GROSS MARGIN | 50 | BPS |
CORE SELLING GENRAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 60 | BPS |
CORE OPERATING PROFIT MARGIN | (10) | BPS |
CORE EFFECTIVE TAX RATE | 10 | BPS |
CORE EPS | (2)% | |
CURRENCY-NEUTRAL CORE EPS | 11% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Fiscal Year Ended June 30, 2014 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 74,401 | — | — | — | — | — | — | 74,401 | |||||||||||||||
COST OF PRODUCTS SOLD | 39,030 | — | (300 | ) | — | — | — | (1 | ) | 38,729 | |||||||||||||
GROSS PROFIT | 35,371 | — | 300 | — | — | — | 1 | 35,672 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 21,461 | — | (88 | ) | (298 | ) | — | (63 | ) | — | 21,012 | ||||||||||||
VENEZUELA DECONSOLIDATION CHARGE | — | — | — | — | — | — | — | — | |||||||||||||||
OPERATING INCOME | 13,910 | — | 388 | 298 | — | 63 | 1 | 14,660 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 13,509 | — | 388 | 298 | — | 63 | — | 14,258 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 2,851 | — | 76 | 23 | — | — | (1 | ) | 2,949 | ||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 10,658 | — | 312 | 275 | — | 63 | 1 | 11,309 | |||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 1,127 | (1,127 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 142 | (22 | ) | — | — | — | — | — | 120 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 11,643 | (1,105 | ) | 312 | 275 | — | 63 | 1 | 11,189 | ||||||||||||||
GROSS MARGIN | 47.5 | % | — | % | 0.4 | % | — | % | — | % | — | % | — | % | 47.9 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 28.8 | % | — | % | (0.1 | )% | (0.4 | )% | — | % | (0.1 | )% | — | % | 28.2 | % | |||||||
OPERATING PROFIT MARGIN | 18.7 | % | — | % | 0.5 | % | 0.4 | % | — | % | 0.1 | % | — | % | 19.7 | % | |||||||
EFFECTIVE TAX RATE | 21.1 | % | — | % | — | % | (0.3 | )% | — | % | (0.1 | )% | — | % | 20.7 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 3.63 | — | 0.11 | 0.09 | — | 0.02 | — | 3.85 |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 16,553 | — | — | — | — | — | — | 16,553 | |||||||||||||||
COST OF PRODUCTS SOLD | 8,837 | — | (199 | ) | — | — | — | — | 8,638 | ||||||||||||||
GROSS PROFIT | 7,716 | — | 199 | — | — | — | — | 7,915 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 4,876 | — | (37 | ) | — | 16 | — | 4,855 | |||||||||||||||
VENEZUELA DECONSOLIDATION CHARGE | 2,028 | — | — | — | (2,028 | ) | — | — | — | ||||||||||||||
OPERATING INCOME | 812 | — | 236 | — | 2,028 | (16 | ) | — | 3,060 | ||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 1,065 | — | 236 | — | 2,028 | (16 | ) | 1 | 3,314 | ||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 569 | — | 63 | — | (24 | ) | — | 1 | 609 | ||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 496 | — | 173 | — | 2,052 | (16 | ) | — | 2,705 | ||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 42 | (42 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 17 | (2 | ) | — | — | — | — | — | 15 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 521 | (40 | ) | 173 | — | 2,052 | (16 | ) | — | 2,690 | |||||||||||||
GROSS MARGIN | 46.6 | % | — | % | 1.2 | % | — | % | — | % | — | % | — | % | 47.8 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 29.5 | % | — | % | (0.2 | )% | — | % | — | % | 0.1 | % | (0.1 | )% | 29.3 | % | |||||||
OPERATING PROFIT MARGIN | 4.9 | % | — | % | 1.4 | % | — | % | 12.3 | % | (0.1 | )% | — | % | 18.5 | % | |||||||
EFFECTIVE TAX RATE | 53.4 | % | — | % | 0.6 | % | — | % | (35.8 | )% | 0.1 | % | 0.1 | % | 18.4 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.17 | — | 0.06 | — | 0.71 | (0.01 | ) | — | 0.93 | ||||||||||||||
LESS: CURRENCY IMPACT TO EARNINGS | (0.13 | ) | |||||||||||||||||||||
CURRENCY-NEUTRAL CORE EPS | 1.06 |
FY 15 CHANGE VERSUS YEAR AGO | ||
CORE GROSS MARGIN | 130 | BPS |
CORE SELLING GENRAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 40 | BPS |
CORE OPERATING PROFIT MARGIN | 80 | BPS |
CORE EFFECTIVE TAX RATE | (10) | BPS |
CORE EPS | 4% | |
CURRENCY-NEUTRAL CORE EPS | 19% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 18,115 | — | — | — | — | — | — | 18,115 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,785 | — | (100 | ) | — | — | — | — | 9,685 | ||||||||||||||
GROSS PROFIT | 8,330 | — | 100 | — | — | — | — | 8,430 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,310 | — | (27 | ) | — | (55 | ) | — | 5,228 | ||||||||||||||
VENEZUELA DECONSOLIDATION CHARGE | — | — | — | — | — | — | — | — | |||||||||||||||
OPERATING INCOME | 3,020 | — | 127 | — | — | 55 | — | 3,202 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,009 | — | 127 | — | — | 55 | — | 3,191 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 559 | — | 30 | — | — | — | — | 589 | |||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,450 | — | 97 | — | — | 55 | — | 2,602 | |||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 170 | (170 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 41 | (7 | ) | — | — | — | — | — | 34 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 2,579 | (163 | ) | 97 | — | — | 55 | — | 2,568 | ||||||||||||||
GROSS MARGIN | 46.0 | % | — | % | 0.6 | % | — | % | — | % | — | % | (0.1 | )% | 46.5 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 29.3 | % | — | % | (0.1 | )% | — | % | — | % | (0.3 | )% | — | % | 28.9 | % | |||||||
OPERATING PROFIT MARGIN | 16.7 | % | — | % | 0.7 | % | — | % | — | % | 0.3 | % | — | % | 17.7 | % | |||||||
EFFECTIVE TAX RATE | 18.6 | % | — | % | 0.2 | % | — | % | — | % | (0.3 | )% | — | % | 18.5 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.83 | — | 0.03 | — | — | 0.02 | 0.01 | 0.89 |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 16,930 | — | — | — | — | — | — | 16,930 | |||||||||||||||
COST OF PRODUCTS SOLD | 8,927 | — | (156 | ) | — | — | — | — | 8,771 | ||||||||||||||
GROSS PROFIT | 8,003 | — | 156 | — | — | — | — | 8,159 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 4,978 | — | (73 | ) | — | — | (5 | ) | — | 4,900 | |||||||||||||
OPERATING INCOME | 3,025 | — | 229 | — | — | 5 | — | 3,259 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 2,968 | — | 229 | — | — | 5 | — | 3,202 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 567 | — | 49 | — | — | — | (1 | ) | 615 | ||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,401 | — | 180 | — | — | 5 | 1 | 2,587 | |||||||||||||||
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS | (213 | ) | 213 | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 35 | (1 | ) | — | — | — | — | — | 34 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 2,153 | 214 | 180 | — | — | 5 | 1 | 2,553 | |||||||||||||||
GROSS MARGIN | 47.3 | % | — | % | 0.9 | % | — | % | — | % | — | % | — | % | 48.2 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 29.4 | % | — | % | (0.4 | )% | — | % | — | % | — | % | (0.1 | )% | 28.9 | % | |||||||
OPERATING PROFIT MARGIN | 17.9 | % | — | % | 1.4 | % | — | % | — | % | — | % | (0.1 | )% | 19.2 | % | |||||||
EFFECTIVE TAX RATE | 19.1 | % | — | % | 0.2 | % | — | % | — | % | — | % | (0.1 | )% | 19.2 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.82 | — | 0.06 | — | — | — | 0.01 | 0.89 | |||||||||||||||
LESS: CURRENCY IMPACT TO EARNINGS | (0.18 | ) | |||||||||||||||||||||
CURRENCY-NEUTRAL CORE EPS | 1.07 |
FY 15 CHANGE VERSUS YEAR AGO | ||
CORE GROSS MARGIN | 30 | BPS |
CORE SELLING GENRAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 70 | BPS |
CORE OPERATING PROFIT MARGIN | (50) | BPS |
CORE EFFECTIVE TAX RATE | 20 | BPS |
CORE EPS | (7)% | |
CURRENCY-NEUTRAL CORE EPS | 11% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 18,231 | — | — | — | — | — | — | 18,231 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,584 | — | (87 | ) | — | — | — | (1 | ) | 9,496 | |||||||||||||
GROSS PROFIT | 8,647 | — | 87 | — | — | — | 1 | 8,735 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,475 | — | (39 | ) | (298 | ) | — | — | 1 | 5,139 | |||||||||||||
OPERATING INCOME | 3,172 | — | 126 | 298 | — | — | — | 3,596 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,042 | — | 126 | 298 | — | — | (1 | ) | 3,465 | ||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 613 | — | 23 | 23 | — | — | (1 | ) | 658 | ||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,429 | — | 103 | 275 | — | — | — | 2,807 | |||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 207 | (207 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 27 | (5 | ) | — | — | — | — | — | 22 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 2,609 | (202 | ) | 103 | 275 | — | — | — | 2,785 | ||||||||||||||
GROSS MARGIN | 47.4 | % | — | % | 0.5 | % | — | % | — | % | — | % | — | % | 47.9 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 30.0 | % | — | % | (0.2 | )% | (1.6 | )% | — | % | — | % | — | % | 28.2 | % | |||||||
OPERATING PROFIT MARGIN | 17.4 | % | — | % | 0.7 | % | 1.6 | % | — | % | — | % | — | % | 19.7 | % | |||||||
EFFECTIVE TAX RATE | 20.2 | % | — | % | — | % | (1.1 | )% | — | % | — | % | (0.1 | )% | 19.0 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.83 | — | 0.04 | 0.10 | — | — | (0.01 | ) | 0.96 |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended December 31, 2014 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 18,495 | — | — | — | — | — | — | 18,495 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,558 | — | (72 | ) | — | — | — | (1 | ) | 9,485 | |||||||||||||
GROSS PROFIT | 8,937 | — | 72 | — | — | — | 1 | 9,010 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,358 | — | (2 | ) | — | — | (39 | ) | — | 5,317 | |||||||||||||
OPERATING INCOME | 3,579 | — | 74 | — | — | 39 | 1 | 3,693 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,472 | — | 74 | — | — | 39 | (1 | ) | 3,584 | ||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 798 | — | 18 | — | — | — | (1 | ) | 815 | ||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,674 | — | 56 | — | — | 39 | — | 2,769 | |||||||||||||||
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS | (276 | ) | 276 | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 26 | (2 | ) | — | — | — | — | — | 24 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 2,372 | 278 | 56 | — | — | 39 | — | 2,745 | |||||||||||||||
GROSS MARGIN | 48.3 | % | — | % | 0.4 | % | — | % | — | % | — | % | — | % | 48.7 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 29.0 | % | — | % | — | % | — | % | — | % | (0.2 | )% | (0.1 | )% | 28.7 | % | |||||||
OPERATING PROFIT MARGIN | 19.4 | % | — | % | 0.4 | % | — | % | — | % | 0.2 | % | — | % | 20.0 | % | |||||||
EFFECTIVE TAX RATE | 23.0 | % | — | % | — | % | — | % | — | % | (0.3 | )% | — | % | 22.7 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.92 | — | 0.02 | — | — | 0.01 | — | 0.95 | |||||||||||||||
LESS: CURRENCY IMPACT TO EARNINGS | (0.15 | ) | |||||||||||||||||||||
CURRENCY-NEUTRAL CORE EPS | 1.10 |
FY 15 CHANGE VERSUS YEAR AGO | ||
CORE GROSS MARGIN | (10) | BPS |
CORE SELLING GENRAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 50 | BPS |
CORE OPERATING PROFIT MARGIN | (60) | BPS |
CORE EFFECTIVE TAX RATE | 130 | BPS |
CORE EPS | (8)% | |
CURRENCY-NEUTRAL CORE EPS | 7% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 19,299 | — | — | — | — | — | — | 19,299 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,924 | — | (51 | ) | — | — | — | — | 9,873 | ||||||||||||||
GROSS PROFIT | 9,375 | — | 51 | — | — | — | — | 9,426 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,483 | — | (23 | ) | — | — | (8 | ) | (1 | ) | 5,451 | ||||||||||||
OPERATING INCOME | 3,892 | — | 74 | — | — | 8 | 1 | 3,975 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,770 | — | 74 | — | — | 8 | 1 | 3,853 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 815 | — | 10 | — | — | — | — | 825 | |||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,955 | — | 64 | — | — | 8 | 1 | 3,028 | |||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 517 | (517 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 44 | (5 | ) | — | — | — | — | — | 39 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 3,428 | (512 | ) | 64 | — | — | 8 | 1 | 2,989 | ||||||||||||||
GROSS MARGIN | 48.6 | % | — | % | 0.3 | % | — | % | — | % | — | % | (0.1 | )% | 48.8 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 28.4 | % | — | % | (0.1 | )% | — | % | — | % | — | % | (0.1 | )% | 28.2 | % | |||||||
OPERATING PROFIT MARGIN | 20.2 | % | — | % | 0.4 | % | — | % | — | % | — | % | — | % | 20.6 | % | |||||||
EFFECTIVE TAX RATE | 21.6 | % | — | % | (0.2 | )% | — | % | — | % | — | % | — | % | 21.4 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 1.00 | — | 0.02 | — | — | — | 0.01 | 1.03 |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 18,771 | — | — | — | — | — | — | 18,771 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,734 | — | (91 | ) | — | — | — | — | 9,643 | ||||||||||||||
GROSS PROFIT | 9,037 | — | 91 | — | — | — | — | 9,128 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,404 | — | 9 | (138 | ) | — | — | 1 | 5,276 | ||||||||||||||
OPERATING INCOME | 3,633 | — | 82 | 138 | — | — | (1 | ) | 3,852 | ||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,507 | — | 82 | 138 | — | — | — | 3,727 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 791 | — | 15 | 34 | — | — | — | 840 | |||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,716 | — | 67 | 104 | — | — | — | 2,887 | |||||||||||||||
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS | (696 | ) | 696 | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 30 | (5 | ) | — | — | — | — | — | 25 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 1,990 | 701 | 67 | 104 | — | — | — | 2,862 | |||||||||||||||
GROSS MARGIN | 48.1 | % | — | % | 0.5 | % | — | % | — | % | — | % | — | % | 48.6 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 28.8 | % | — | % | — | % | (0.7 | )% | — | % | — | % | — | % | 28.1 | % | |||||||
OPERATING PROFIT MARGIN | 19.4 | % | — | % | 0.4 | % | 0.7 | % | — | % | — | % | — | % | 20.5 | % | |||||||
EFFECTIVE TAX RATE | 22.6 | % | — | % | (0.1 | )% | 0.1 | % | — | % | — | % | (0.1 | )% | 22.5 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.93 | — | 0.02 | 0.04 | — | — | — | 0.99 | |||||||||||||||
LESS: CURRENCY IMPACT TO EARNINGS | (0.07 | ) | |||||||||||||||||||||
CURRENCY-NEUTRAL CORE EPS | 1.06 |
FY 15 CHANGE VERSUS YEAR AGO | ||
CORE GROSS MARGIN | 20 | BPS |
CORE SELLING GENRAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 40 | BPS |
CORE OPERATING PROFIT MARGIN | (20) | BPS |
CORE EFFECTIVE TAX RATE | (90) | BPS |
CORE EPS | 2% | |
CURRENCY-NEUTRAL CORE EPS | 9% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Selected Financial Information & Non-GAAP Measures, Revised for Beauty Brands Discontinued Operations | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
AS REVISED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | VENEZUELA B/S REMEASUREMENT & DEVALUATION | VENEZUELA DECONSOLIDATION | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE*) | ||||||||||||||||
NET SALES | 18,756 | — | — | — | — | — | — | 18,756 | |||||||||||||||
COST OF PRODUCTS SOLD | 9,737 | — | (62 | ) | — | — | — | — | 9,675 | ||||||||||||||
GROSS PROFIT | 9,019 | — | 62 | — | — | — | — | 9,081 | |||||||||||||||
SELLING, GENERAL, & ADMINISTRATIVE EXPENSE | 5,193 | — | 1 | — | — | — | — | 5,194 | |||||||||||||||
OPERATING INCOME | 3,826 | — | 61 | — | — | — | — | 3,887 | |||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | 3,688 | — | 61 | — | — | — | — | 3,749 | |||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 864 | — | 13 | — | — | — | — | 877 | |||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 2,824 | — | 48 | — | — | — | — | 2,872 | |||||||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | 233 | (233 | ) | — | — | — | — | — | — | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 30 | (5 | ) | — | — | — | — | — | 25 | ||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 3,027 | (228 | ) | 48 | — | — | — | — | 2,847 | ||||||||||||||
GROSS MARGIN | 48.1 | % | — | % | 0.3 | % | — | % | — | % | — | % | — | % | 48.4 | % | |||||||
SELLING, GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES | 27.7 | % | — | % | — | % | — | % | — | % | — | % | — | % | 27.7 | % | |||||||
OPERATING PROFIT MARGIN | 20.4 | % | — | % | 0.3 | % | — | % | — | % | — | % | — | % | 20.7 | % | |||||||
EFFECTIVE TAX RATE | 23.4 | % | — | % | — | % | — | % | — | % | — | % | — | % | 23.4 | % | |||||||
CORE EPS: | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS** | 0.96 | — | 0.02 | — | — | — | (0.01 | ) | 0.97 |
GOODWILL AND INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2014
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2014
USD ($)
|
Jul. 08, 2015 |
|
Goodwill, Impairment Loss | $ 2,064 | $ 0 | ||
Beauty Brands - Held for Sale [Member] | ||||
Disposal Groups - Number of Product Categories | 4 | |||
Disposal Groups - Number of Brands | 43 | |||
Batteries [Member] | ||||
Goodwill, Impairment Loss | $ 863 | $ 1,200 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 110 | |||
Intangible Asset Impairment Charges After Tax [Line Items] | $ 69 |
STATEMENT OF AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2013 |
||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | $ (7,662) | $ (7,499) | ||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (5,496) | [1] | (354) | [2] | ||||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | [5] | 378 | [3],[4] | 191 | [6] | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (5,118) | (163) | $ 1,834 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | (12,780) | (7,662) | (7,499) | |||||||||||||||
Hedges | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | (3,876) | (3,529) | ||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,390 | [1] | (305) | [2] | ||||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | [5] | (156) | [3],[4] | (42) | [6] | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 1,234 | (347) | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | (2,642) | (3,876) | (3,529) | |||||||||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | (18) | (27) | ||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 26 | [1] | 20 | [2] | ||||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | [5] | (2) | [3],[4] | (11) | [6] | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 24 | 9 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | 6 | (18) | (27) | |||||||||||||||
Pension Plan [Member] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | (5,165) | (4,296) | ||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 563 | [1] | (1,113) | [2] | ||||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | [5] | 281 | [3],[4] | 244 | [6] | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 844 | (869) | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | (4,321) | (5,165) | (4,296) | |||||||||||||||
Foreign Currency Gain (Loss) [Member] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beg. Balance | 1,397 | 353 | ||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (7,475) | [1] | 1,044 | [2] | ||||||||||||||
Amounts reclassified from AOCI (4) (5) (6) | [5] | 255 | [3],[4] | 0 | [6] | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (7,220) | 1,044 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, End Balance | $ (5,823) | $ 1,397 | $ 353 | |||||||||||||||
|
SHORT-TERM AND LONG-TERM DEBT - SHORT-TERM DEBT (Details) - USD ($) $ in Millions |
Jun. 30, 2015 |
Jun. 30, 2014 |
||
---|---|---|---|---|
Debt, Current [Abstract] | ||||
Long-term Debt, Current Maturities | $ 2,772 | $ 4,307 | ||
Commercial paper | 8,807 | 10,818 | ||
Other | 439 | 475 | ||
TOTAL | $ 12,018 | $ 15,600 | ||
Short-term weighted average interest rates | [1] | 0.30% | 0.70% | |
|
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