Help me on a executive summary forColgate-Palmolive Company's segments and NCI's. I have included some info for assistance.
1. Aintroduction / review of Colgate-Palmolive Company; NYSE: CL .
2.What are the requirements/rules for disclosures in the two areas of segments and NCIs to include the history and development of the specific rules (#s), key points etc. of segment and NCI reporting and disclosure requirements.
3. What and how Colgate-Palmolive Company has disclosed relating to these two items (and only these items), and
4. How'sthe effectiveness / overall meaningfulness of Colgate-Palmolive's disclosures relating to only segments and NCIs and the disclosure rules themselves
Executive Overview Colgate-Palmolive Company (together with its subsidiaries, the "Company" or "Colgate") seeks to deliver strong, consistent business results and superior shareholder returns by providing consumers globally with products that make their lives healthier and more enjoyable. To this end, the Company is tightly focused on two product segments: Oral, Personal and Home Care; and Pet Nutrition. Within these segments, the Company follows a closely defined business strategy to develop and increase market leadership positions in key product categories. These product categories are prioritized based on their capacity to maximize the use of the organization's core competencies and strong global equities and to deliver sustainable long-term growth. Operationally, the Company is organized along geographic lines with management teams having responsibility for the business and financial results in each region. The Company competes in more than 200 countries and territories worldwide with established businesses in all regions contributing to the Company's sales and profitability. Approximately 75% of the Company's Net sales are generated from markets outside the U.S., with approximately 50% of the Company's Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). This geographic diversity and balance help to reduce the Company's exposure to business and other risks in any one country or part of the world. The Oral, Personal and Home Care product segment is managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia, all of which sell to a variety of retail and wholesale customers and distributors. The Company, through Hill's Pet Nutrition, also competes on a worldwide basis in the pet nutrition market, selling its products principally through authorized pet supply retailers and veterinarians. Many of the Company's products are also sold online through various e-commerce platforms and retailers. On an ongoing basis, management focuses on a variety of key indicators to monitor business health and performance. These indicators include market share, net sales (including volume, pricing and foreign exchange components), organic sales growth (net sales growth excluding, as applicable, the impact of foreign exchange, acquisitions, divestments and the deconsolidation of the Company's Venezuelan operations), a non-GAAP financial measure, and gross profit margin, operating profit, net income and carnings per share, in each case, on a GAAP and non-GAAP basis, as well as measures used to optimize the management of working capital. capital expenditures, cash flow and return on capital. The monitoring of these indicators and the Company's Code of Conduct and corporate governance practices help to maintain business health and strong internal controls. For additional information regarding non- GAAP financial measures, see "Non-GAAP Financial Measures" below. To achieve its business and financial objectives, the Company focuses the organization on initiatives to drive and fund growth. The Company seeks to capture significant opportunities for growth by identifying and meeting consumer needs within its core categories, through its focus on innovation and the deployment of valuable consumer and shopper insights in the development of successful new products regionally, which are then rolled out on a global basis. To enhance these efforts, the Company has developed key initiatives to build strong relationships with consumers, dental and veterinary professionals and retail customers. In addition, the Company has strengthened its capabilities in e-commerce, including by developing its relationships with online-only retailers and enhancing its digital marketing capabilities, Growth opportunities are greater in those areas of the world in which coonomic development and rising consumer incomes expand the size and number of markets for the Company's products.The investments needed to support growth are developed through continuous, Company-wide initiatives to lower costs and increase effective asset utilization. Through these initiatives, which are referred to as the Company's funding-the-growth initiatives, the Company seeks to become even more effective and efficient throughout its businesses. These initiatives are designed to reduce costs associated with direct materials, indirect expenses, distribution and logistics, and advertising and promotional materials, among other things, and encompass a wide range of projects, examples of which include raw material substitution, reduction of packaging materials, consolidating suppliers to leverage volumes and increasing manufacturing efficiency through SKU reductions and formulation simplification. The Company also continues to prioritize its investments toward its higher margin businesses, specifically Oral Care, Personal Care and Pet Nutrition. Operating Profit $2,789 in 2015. Operating profit decreased 6% to $3,589 in 2017 from $3,837 in 2016. Operating profit increased 38% to $3,837 in 2016 from In 2017, 2016 and 2015, Operating profit included charges related to the Global Growth and Efficiency Program. In 2016 and 2015, Operating profit also included charges for litigation matters. In 2016, Operating profit also included a gain on sale of land in Mexico. In 2015, Operating profit also included a charge related to the deconsolidation of the Company's Venezuelan operations, charges related to the Venezuela Remeasurements and a gain on the sale of the Company's laundry detergent business in the South Pacific. Excluding these items in all periods, as applicable, Operating profit decreased 2% in 2017, primarily due to an increase in Selling, general and administrative expenses, which was partially offset by higher Gross profit, and Operating profit in 2016 was even with 2015, primarily due to lower Gross profit, which was offset by a decrease in Selling, general and administrative expenses. Operating profit margin was 23.2% in 2017, compared with 25.3% in 2016 and 17.4% in 2015. Excluding the items described above in 2017 and 2016, as applicable, Operating profit margin decreased 80 bps to 25.4% in 2017 compared to 26.2% in 2016. This decrease is due to an increase in Selling, general and administrative expenses (100 bps), partially offset by an increase in Gross profit (20 bps). both as a percentage of Net sales, Excluding the items described above in 2016 and 2015, as applicable, Operating profit margin increased 130 bps in 2016 compared to 2015, primarily due to an increase in Gross profit (160 bps), partially offset by an increase in Selling, general and administrative expenses (30 bps), both as a percentage of Net sales. 2017 2016 % Change 2015 % Change Operating profit, GAAP 3.589 S 3,837 (6)%% 2.789 38 % Global Growth and Efficiency Program 333 228 254 Gain on sale of land in Mexico (97) Charges for litigation matters 17 14 Venezuela deconsolidation 1.084 Venezuela remeasurement charges 34 Gain on sale of South Pacific laundry detergent business (187) Operating profit, non-GAAP 3.922 3.985 (2) 3,988 -%15. Segment Information The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe+ Asia Pacic and A'icw'Eurasia. The Company evaluates segment performance based on several actors, including Operating prot. The Company uses Operating prot as a measure ofoperating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes. The accounting policies ofthe operating segments are generally the same as those described in Note 2, Summary of Signicant Accounting Policies. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs. Corporate overhead costs, restructuring and related implementation costs and gains and lomes on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance med by the Company to measure the underlying performance of the operating segments. COLGATE-PALMOLIVE COMPANY Notes to Consolidated Financial Statements (continued) (Dollars in Millions Except Share and Per Share Amounts) Approximately 75% of the Company's Net sales are generated from markets outside the U.S., with approximately 50% of the Company's Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). Oral, Personal and Home Care sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 11% of the Company's Net sales in 2017. No other customer represents more than 10% of Net sales. In 2017, Corporate Operating profit (loss) includes charges of $333 resulting from the Global Growth and Efficiency Program. In 2016, Corporate Operating profit (loss) includes charges of $228 resulting from the Global Growth and Efficiency Program and $17 for a litigation matter and a gain of $97 on the sale of land in Mexico. In 2015, Corporate Operating profit (loss) included charges of $1,084 related to the deconsolidation of the Company's Venezuelan operations, $254 related to the Global Growth and Efficiency Program, $34 related to the remeasurement of CP Venezuela's local currency-denominated net monetary assets as a result of effective devaluations and $14 for a litigation matter and a gain of $187 on the sale of the Company's laundry detergent business in the South Pacific. 2017 2016 2015 Net sales Oral, Personal and Home Care North America(1) S 3,117 $ 3,183 $ 3,149 Latin America 3,887 3,650 4,327 Europe 2,394 2,342 2,411 Asia Pacific 2,781 2,796 2,937 Africa/Eurasia 983 960 998 Total Oral, Personal and Home Care 13,162 12,931 13,822 Pet Nutrition(2) 2,292 2.264 2,212 Total Net sales $ 15,454 $ 15,195 $ 16,034 Net sales in the U.S. for Oral, Personal and Home Care were $2,865, $2,932 and $2,896 in 2017, 2016 and 2015, respectively. (2) Net sales in the U.S. for Pet Nutrition were $1,246, $1,243 and $1,223 in 2017, 2016 and 2015, respectively.2017 2016 2015 Operating profit Oral, Personal and Home Care North America 986 $ 1,030 974 Latin America 1,162 1,132 1,209 Europe 599 579 615 Asia Pacific 841 887 888 Africa/Eurasia 179 186 178 Total Oral, Personal and Home Care 3,767 3,814 3,864 Pet Nutrition 653 653 612 Corporate (831) (630) (1,687) Total Operating profit S 3,589 3,837 $ 2,789(Dollars in Millions Except Share and Per Share Amounts) 2017 2016 Assets Current Assets Cash and cash equivalents 1,535 1,315 Receivables (net of allowances of $77 and $73, respectively) 1,480 411 Inventories 1,221 1,171 Other current assets 403 441 Total current assets 1.639 4,338 Property, plant and equipment, net 4,071 3,840 Goodwill 2,218 2,107 Other intangible assets, net 1,341 1,313 Deferred income taxes 188 301 Other assets 218 224 Total assets 12,676 12,123 Liabilities and Shareholders' Equity Current Liabilities Notes and loans payable S 11 13 Current portion of long-term debt Accounts payable 1,211 1,124 Accrued income taxes 354 441 Other accruals 1,831 1,727 Total current liabilities 3,408 3,305 Long-term debt 6,566 6,520 Deferred income taxes 246 Other liabilities 2,255 2,035 Total liabilities 12,433 12,106 Commitments and contingent liabilities Shareholders* Equity Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued) 1,466 1,466 Additional paid-in capital 1,984 1,691 Retained earnings 20,531 19,922 Accumulated other comprehensive income (loss) (3,855) (4, 180) Unearned compensation (5) (7) Treasury stock, at cost (20,181) (19,135) Total Colgate-Palmolive Company shareholders' equity (60) 243) Noncontrolling interests 303 260 Total equity 243 17 Total liabilities and equity 12,676 12,123
