Company Website:
http://www.pg.com
CINCINNATI -- (Business Wire)
The Procter & Gamble Company (NYSE:PG) reported second quarter fiscal
year 2015 core earnings per share of $1.06 versus $1.15 the prior year.
On a currency-neutral basis, core earnings per share increased six
percent. Diluted net earnings per share were $0.82, including non-core
items which reduced diluted EPS by $0.24 per share. Organic sales grew
two percent for the quarter. Reported net sales were $20.2 billion, a
decrease of four percent versus the prior year, including a negative
five percentage point impact from foreign exchange.
"The October - December 2014 quarter was a challenging one with
unprecedented currency devaluations," said Chairman, President and Chief
Executive Officer A.G. Lafley. "Virtually every currency in the world
devalued versus the U.S. dollar, with the Russian Ruble leading the way.
While we continue to make steady progress on the strategic
transformation of the company - which focuses P&G on about a dozen core
categories and 70 to 80 brands, on leading brand growth, on accelerating
meaningful product innovation and increasing productivity savings - the
considerable business portfolio, product innovation, and productivity
progress was not enough to overcome foreign exchange."
"The outlook for the year will remain challenging. Foreign exchange will
reduce fiscal 2015 sales by 5% and net earnings by 12%, or at least $1.4
billion after tax. We have and will continue to offset as much of this
currency impact as we can through productivity driven cost savings. And
we will continue to invest in our businesses, brands and product
innovation, because it is the right thing to do for the mid- and
long-term, while we deliver another year of strong cash returns to
shareowners. We are adjusting fiscal year earnings targets accordingly.
We are mobilized to deliver another fiscal year of modest organic sales
growth, and to continue to grow market share on more category-leading
brands. We are working to deliver core earnings per share as close as
possible to those of last fiscal year."
October - December Quarter Discussion
Net sales decreased four percent versus year ago to $20.2 billion in the
October - December quarter, including a negative five percent impact
from foreign exchange. Organic sales were up two percent, with growth in
four of five reporting segments. Organic volume was unchanged versus the
prior year. Pricing added one percentage point to sales growth, and
geographic and product mix was also positive.
October – December 2014 |
| |
|
Foreign
|
| |
| |
| |
| |
|
Organic
|
|
Organic
|
Net Sales Drivers |
|
Volume
|
|
Exchange
|
|
Price
|
|
Mix
|
|
Other*
|
|
Net Sales
|
|
Volume
|
|
Sales
|
Beauty, Hair and Personal Care
| |
-2
|
%
| |
-4
|
%
| |
1
|
%
| |
0
|
%
| |
-1
|
%
| |
-6
|
%
| |
-2
|
%
| |
-1
|
%
|
Grooming
| |
-2
|
%
| |
-7
|
%
| |
4
|
%
| |
0
|
%
| |
0
|
%
| |
-5
|
%
| |
-2
|
%
| |
2
|
%
|
Health Care
| |
-2
|
%
| |
-4
|
%
| |
0
|
%
| |
3
|
%
| |
0
|
%
| |
-3
|
%
| |
-2
|
%
| |
1
|
%
|
Fabric Care and Home Care
| |
2
|
%
| |
-6
|
%
| |
1
|
%
| |
0
|
%
| |
-1
|
%
| |
-4
|
%
| |
2
|
%
| |
3
|
%
|
Baby, Feminine and Family Care
|
|
0
|
%
|
|
-6
|
%
|
|
1
|
%
|
|
3
|
%
|
|
0
|
%
|
|
-2
|
%
|
|
0
|
%
|
|
4
|
%
|
Total P&G |
|
0
|
%
|
|
-5
|
%
|
|
1
|
%
|
|
1
|
%
|
|
-1
|
%
|
|
-4
|
%
|
|
0
|
%
|
|
2
|
%
|
*Other includes the sales mix impact of acquisitions/divestitures
and rounding impacts necessary to reconcile volume to net sales
|
|
-
Beauty, Hair and Personal Care segment organic sales decreased one
percent driven primarily by declines in the Prestige and Skin and
Personal Care categories. This was partially offset by
innovation-driven sales growth in the Salon Professional and
Antiperspirant & Deodorant businesses.
-
Grooming segment organic sales increased two percent due to higher
pricing and innovation on Gillette grooming and innovation on Braun.
This growth was partially offset by lower shipment volume.
-
Health Care segment organic sales increased one percent behind growth
in Oral Care from innovation and increased pricing. These improvements
were partially offset by lower volume in Personal Health Care,
primarily from a decline on Prilosec due to a new market entrant.
-
Fabric Care and Home Care segment organic sales increased three
percent as growth on Fabric Care from product innovations and consumer
value corrections were partially offset by lower volume in Home Care,
mainly in Asia.
-
Baby, Feminine and Family Care segment organic sales increased four
percent behind pricing and innovation in Baby Care and Feminine Care,
partially offset by lower sales in Family Care due to a soft period in
Mexico and consumer value interventions in the U.S.
Core earnings per share were $1.06, a decrease of eight percent versus
the prior year. Foreign exchange reduced core earnings by about $0.16
per share, resulting in a 14% decrease in core earnings per share.
Excluding these foreign exchange impacts, constant currency core EPS
increased 6%. Diluted net earnings per share were $0.82, including a
loss on discontinued operations of $0.20 and other non-core charges of
$0.04. The loss in discontinued operations includes a $0.26 per share
non-cash impairment charge in the battery business. For a full
reconciliation of non-core items, please see Exhibit #1: Non-GAAP
Measures.
Core operating profit margin decreased 60 basis points due to a decrease
in core gross margin of about 20 basis points and an increase in core
SG&A as a percentage of net sales of about 30 basis points. Reported
operating profit margin decreased 80 basis points. Reported gross margin
decreased 40 basis points as manufacturing savings of 190 basis points
were more than offset by unfavorable geographic and product mix,
unfavorable foreign exchange, higher commodity costs, incremental
restructuring charges and innovation and capacity expansion investments.
Reported SG&A as a percentage of sales increased 40 basis points as
productivity savings of 70 basis points from overhead and 70 basis
points of marketing efficiencies, primarily in non-working marketing
spending areas, were more than offset by foreign exchange impacts and
overhead investments. Total productivity savings in cost of goods sold
and SG&A were 330 basis points.
P&G generated operating cash flow of $3.4 billion for the quarter. P&G
returned $3.7 billion in cash to shareholders, including $1.8 billion in
dividends and $1.9 billion of common stock repurchases. Fiscal
year-to-date, P&G has returned approximately $7.9 billion to
shareholders via $3.6 billion in dividends and $4.3 billion in stock
repurchases. Fiscal year-to-date, adjusted free cash flow productivity
is 95%.
Discontinued Operations
As a result of the previously announced divestiture of its Duracell
battery business to Berkshire Hathaway, expected to close in the second
half of calendar year 2015, and in accordance with the applicable
accounting guidance, the results of the batteries business are presented
as discontinued operations. During the quarter, the Company took a
non-cash charge of $740 million after-tax, or $0.26 per share, included
in discontinued operations to adjust the carrying values of the
batteries business to reflect the value it expects to receive. During
the first quarter of fiscal year 2015, the Company previously took a
write down in the asset value of its battery business to be more
reflective of the value it expected to receive from the sale of its
interest in a China-based battery joint venture, which closed as
expected during the second quarter.
Fiscal Year 2015 Guidance
P&G maintained its organic sales growth and currency-neutral core
earnings per share growth guidance ranges for fiscal year 2015. The
Company expects significant negative sales and earnings impacts from
foreign exchange in the second half of its fiscal year.
The Company maintained its guidance for organic sales growth in the
low-to-mid single digit range. Net sales growth is now expected to be
lower versus the prior fiscal year in the range of -3% to -4%, including
a negative five point headwind from foreign exchange and a one point
impact from minor brand divestitures.
P&G maintained its outlook for currency-neutral core earnings per share
growth in the double-digits. Including currency impacts, Core EPS is now
expected to be in the range of in-line to down low-single digits versus
prior year Core EPS of $4.09. All-in GAAP diluted net earnings per share
are now expected to be down in the mid-teens range versus the prior
year. This includes approximately $0.67 per share of non-core charges,
primarily from $0.20 per share of non-core restructuring charges and
$0.58 of impairment charges, which are partially offset by approximately
$0.14 of earnings from discontinued Batteries and Pet Care operations.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended
| |
Three Months Ended
|
| |
December 31
| |
December 31
|
| |
2014
|
|
2013
|
|
% Change
| |
2014
|
|
2013
|
|
% Change
|
NET SALES
| |
$
|
20,161
| |
$
|
21,099
| |
(4)%
| |
$
|
20,161
| |
$
|
21,099
| |
(4)%
|
COST OF PRODUCTS SOLD
| |
10,083
| |
10,474
| |
(4)%
| |
10,006
| |
10,422
| |
(4)%
|
GROSS PROFIT
| |
10,078
| |
10,625
| |
(5)%
| |
10,155
| |
10,677
| |
(5)%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
6,131
| |
6,323
| |
(3)%
| |
6,074
| |
6,283
| |
(3)%
|
OPERATING INCOME
| |
3,947
| |
4,302
| |
(8)%
| |
4,081
| |
4,394
| |
(7)%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
1.02
| |
$
|
1.12
| |
(9)%
| |
$
|
1.06
| |
$
|
1.15
| |
(8)%
|
TAX RATE
| |
22.5
|
%
|
21.2
|
%
| | |
22.3
|
%
|
21.0
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
50.0
|
%
|
50.4
|
%
|
(40)
| |
50.4
|
%
|
50.6
|
%
|
(20)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
30.4
|
%
|
30.0
|
%
|
40
| |
30.1
|
%
|
29.8
|
%
|
30
|
OPERATING MARGIN
| |
19.6
|
%
|
20.4
|
%
|
(80)
| |
20.2
|
%
|
20.8
|
%
|
(60)
|
| | | | | | | | | | | |
|
CASH FLOW (SIX MONTHS ENDED DECEMBER 31)
SOURCE/(USE) | | | | | | |
| |
2014
|
|
2013
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
7,068
| |
$
|
5,343
| | | | | | | | |
FREE CASH FLOW
| |
5,426
| |
3,680
| | | | | | | | |
DIVIDENDS
| |
(3,614
|
)
|
(3,409
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(4,253
|
)
|
(4,004
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended
| |
Three Months Ended
|
| |
September 30
| |
September 30
|
| |
2014
|
|
2013
|
|
% Change
| |
2014
|
|
2013
|
|
% Change
|
NET SALES
| |
$
|
20,186
| |
$
|
20,174
| |
-%
| |
$
|
20,186
| |
$
|
20,174
| |
-%
|
COST OF PRODUCTS SOLD
| |
10,209
| |
10,208
| |
-%
| |
10,116
| |
10,145
| |
-%
|
GROSS PROFIT
| |
9,977
| |
9,966
| |
-%
| |
10,070
| |
10,029
| |
-%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
6,199
| |
5,996
| |
3%
| |
6,059
| |
5,993
| |
1%
|
OPERATING INCOME
| |
3,778
| |
3,970
| |
(5)%
| |
4,011
| |
4,036
| |
(1)%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
0.97
| |
$
|
1.00
| |
(3)%
| |
$
|
1.04
| |
$
|
1.01
| |
3%
|
TAX RATE
| |
22.4
|
%
|
23.4
|
%
| | |
22.4
|
%
|
23.4
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
49.4
|
%
|
49.4
|
%
|
—
| |
49.9
|
%
|
49.7
|
%
|
20
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
30.7
|
%
|
29.7
|
%
|
100
| |
30.0
|
%
|
29.7
|
%
|
30
|
OPERATING MARGIN
| |
18.7
|
%
|
19.7
|
%
|
(100)
| |
19.9
|
%
|
20.0
|
%
|
(10)
|
| | | | | | | | | | | |
|
CASH FLOW (THREE MONTHS ENDED SEPTEMBER
30) SOURCE/(USE) | | | | | | |
| |
2014
|
|
2013
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
3,633
| |
$
|
2,044
| | | | | | | | |
FREE CASH FLOW
| |
2,823
| |
1,319
| | | | | | | | |
DIVIDENDS
| |
(1,806
|
)
|
(1,708
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(2,378
|
)
|
(2,502
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Year Ended June 30
| |
Year Ended June 30
|
| |
2014
|
|
2013
|
|
% Change
| |
2014
|
|
2013
|
|
% Change
|
NET SALES
| |
$
|
80,510
| |
$
|
80,116
| |
-%
| |
$
|
80,510
| |
$
|
80,116
| |
-%
|
COST OF PRODUCTS SOLD
| |
41,010
| |
39,991
| |
3%
| |
40,705
| |
39,743
| |
2%
|
GROSS PROFIT
| |
39,500
| |
40,125
| |
(2)%
| |
39,805
| |
40,373
| |
(1)%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
24,760
| |
26,000
| |
(5)%
| |
24,277
| |
25,166
| |
(4)%
|
GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET IMPAIRMENT CHARGES
| |
-
|
308
| |
N/A
| |
-
|
-
|
N/A
|
OPERATING INCOME
| |
14,740
| |
13,817
| |
7%
| |
15,528
| |
15,207
| |
2%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
3.86
| |
$
|
3.71
| |
4%
| |
$
|
4.09
| |
$
|
3.89
| |
5%
|
TAX RATE
| |
21.1
|
%
|
22.8
|
%
| | |
20.6
|
%
|
23.0
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
49.1
|
%
|
50.1
|
%
|
(100)
| |
49.4
|
%
|
50.4
|
%
|
(100)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
30.8
|
%
|
32.5
|
%
|
(170)
| |
30.2
|
%
|
31.4
|
%
|
(120)
|
OPERATING MARGIN
| |
18.3
|
%
|
17.2
|
%
|
110
| |
19.3
|
%
|
19.0
|
%
|
30
|
| | | | | | | | | | | |
|
CASH FLOW (YEAR ENDED JUNE 30) -
SOURCE/(USE) | | | | | | |
| |
2014
|
|
2013
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
13,958
| |
$
|
14,873
| | | | | | | | |
FREE CASH FLOW
| |
10,110
| |
10,865
| | | | | | | | |
DIVIDENDS
| |
(6,911
|
)
|
(6,519
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(6,005
|
)
|
(5,986
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended June 30
| |
Three Months Ended June 30
|
| |
2014
|
|
2013
|
|
% Change
| |
2014
|
|
2013
|
|
% Change
|
NET SALES
| |
$
|
19,596
| |
$
|
19,746
| |
(1)%
| |
$
|
19,596
| |
$
|
19,746
| |
(1)%
|
COST OF PRODUCTS SOLD
| |
10,288
| |
10,247
| |
-%
| |
10,188
| |
10,191
| |
-%
|
GROSS PROFIT
| |
9,308
| |
9,499
| |
(2)%
| |
9,408
| |
9,555
| |
(2)%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
6,146
| |
6,656
| |
(8)%
| |
6,047
| |
6,546
| |
(8)%
|
GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET IMPAIRMENT CHARGES
| |
-
|
308
| |
N/A
| |
-
|
-
|
-%
|
OPERATING INCOME
| |
3,162
| |
2,535
| |
25%
| |
3,361
| |
3,009
| |
12%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
0.87
| |
$
|
0.61
| |
43%
| |
$
|
0.93
| |
$
|
0.76
| |
22%
|
TAX RATE
| |
18.8
|
%
|
24.9
|
%
| | |
18.7
|
%
|
22.0
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
47.5
|
%
|
48.1
|
%
|
(60)
| |
48.0
|
%
|
48.4
|
%
|
(40)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
31.4
|
%
|
33.7
|
%
|
(230)
| |
30.9
|
%
|
33.2
|
%
|
(230)
|
OPERATING MARGIN
| |
16.1
|
%
|
12.8
|
%
|
330
| |
17.2
|
%
|
15.2
|
%
|
200
|
| | | | | | | | | | | |
|
CASH FLOW (YEAR ENDED JUNE 30) -
SOURCE/(USE) | | | | | | |
| |
2014
|
|
2013
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
13,958
| |
$
|
14,873
| | | | | | | | |
FREE CASH FLOW
| |
10,110
| |
10,865
| | | | | | | | |
DIVIDENDS
| |
(6,911
|
)
|
(6,519
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(6,005
|
)
|
(5,986
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended March 31
| |
Three Months Ended March 31
|
| |
2014
|
|
2013
|
|
% Change
| |
2014
|
|
2013
|
|
% Change
|
NET SALES
| |
$
|
19,641
| |
$
|
19,731
| |
-%
| |
$
|
19,641
| |
$
|
19,731
| |
-%
|
COST OF PRODUCTS SOLD
| |
10,040
| |
9,808
| |
2%
| |
9,950
| |
9,758
| |
2%
|
GROSS PROFIT
| |
9,601
| |
9,923
| |
(3)%
| |
9,691
| |
9,973
| |
(3)%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
6,295
| |
6,631
| |
(5)%
| |
5,954
| |
6,220
| |
(4)%
|
OPERATING INCOME
| |
3,306
| |
3,292
| |
-%
| |
3,737
| |
3,753
| |
-%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
0.87
| |
$
|
0.85
| |
2%
| |
$
|
1.00
| |
$
|
0.96
| |
4%
|
TAX RATE
| |
20.3
|
%
|
20.9
|
%
| | |
19.1
|
%
|
22.0
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
48.9
|
%
|
50.3
|
%
|
(140)
| |
49.3
|
%
|
50.5
|
%
|
(120)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
32.1
|
%
|
33.6
|
%
|
(150)
| |
30.3
|
%
|
31.5
|
%
|
(120)
|
OPERATING MARGIN
| |
16.8
|
%
|
16.7
|
%
|
10
| |
19.0
|
%
|
19.0
|
%
|
—
|
| | | | | | | | | | | |
|
CASH FLOW (NINE MONTHS ENDED MARCH 31) -
SOURCE/(USE) | | | | | | |
| |
2014
|
|
2013
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
9,452
| |
$
|
10,481
| | | | | | | | |
FREE CASH FLOW
| |
6,845
| |
8,055
| | | | | | | | |
DIVIDENDS
| |
(5,097
|
)
|
(4,797
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(5,505
|
)
|
(4,985
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended
| |
Three Months Ended
|
| |
December 31
| |
December 31
|
| |
2013
|
|
2012
|
|
% Change
| |
2013
|
|
2012
|
|
% Change
|
NET SALES
| |
$
|
21,099
| |
$
|
20,922
| |
1%
| |
$
|
21,099
| |
$
|
20,922
| |
1%
|
COST OF PRODUCTS SOLD
| |
10,474
| |
10,182
| |
3%
| |
10,422
| |
10,132
| |
3%
|
GROSS PROFIT
| |
10,625
| |
10,740
| |
(1)%
| |
10,677
| |
10,790
| |
(1)%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
6,323
| |
6,512
| |
(3)%
| |
6,283
| |
6,416
| |
(2)%
|
OPERATING INCOME
| |
4,302
| |
4,228
| |
2%
| |
4,394
| |
4,374
| |
-%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
1.12
| |
$
|
1.33
| |
(16)%
| |
$
|
1.15
| |
$
|
1.16
| |
(1)%
|
TAX RATE
| |
21.2
|
%
|
21.3
|
%
| | |
21.0
|
%
|
23.9
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
50.4
|
%
|
51.3
|
%
|
(90)
| |
50.6
|
%
|
51.6
|
%
|
(100)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
30.0
|
%
|
31.1
|
%
|
(110)
| |
29.8
|
%
|
30.7
|
%
|
(90)
|
OPERATING MARGIN
| |
20.4
|
%
|
20.2
|
%
|
20
| |
20.8
|
%
|
20.9
|
%
|
(10)
|
| | | | | | | | | | | |
|
CASH FLOW (SIX MONTHS ENDED DECEMBER 31)
- SOURCE/(USE) | | | | | | |
| |
2013
|
|
2012
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
5,343
| |
$
|
6,619
| | | | | | | | |
FREE CASH FLOW
| |
3,680
| |
5,090
| | | | | | | | |
DIVIDENDS
| |
(3,409
|
)
|
(3,206
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(4,004
|
)
|
(3,984
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Selected Financial Information, Restated for Batteries
Discontinued Operations |
|
| |
| |
| |
GAAP
| |
CORE (NON-GAAP)*
|
| |
Three Months Ended
| |
Three Months Ended
|
| |
September 30
| |
September 30
|
| |
2013
|
|
2012
|
|
% Change
| |
2013
|
|
2012
|
|
% Change
|
NET SALES
| |
$
|
20,174
| |
$
|
19,717
| |
2%
| |
$
|
20,174
| |
$
|
19,717
| |
2%
|
COST OF PRODUCTS SOLD
| |
10,208
| |
9,754
| |
5%
| |
10,145
| |
9,662
| |
5%
|
GROSS PROFIT
| |
9,966
| |
9,963
| |
-%
| |
10,029
| |
10,055
| |
-%
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
5,996
| |
6,201
| |
(3)%
| |
5,993
| |
5,984
| |
-%
|
OPERATING INCOME
| |
3,970
| |
3,762
| |
6%
| |
4,036
| |
4,071
| |
(1)%
|
DILUTED NET EPS FROM CONTINUING OPERATIONS**
| |
$
|
1.00
| |
$
|
0.92
| |
9%
| |
$
|
1.01
| |
$
|
1.01
| |
-%
|
TAX RATE
| |
23.4
|
%
|
24.9
|
%
| | |
23.4
|
%
|
23.8
|
%
| |
| | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | Basis Pt Change | | | | | | Basis Pt Change |
GROSS MARGIN
| |
49.4
|
%
|
50.5
|
%
|
(110)
| |
49.7
|
%
|
51.0
|
%
|
(130)
|
SELLING, GENERAL & ADMINISTRATIVE EXPENSE
| |
29.7
|
%
|
31.5
|
%
|
(180)
| |
29.7
|
%
|
30.3
|
%
|
(60)
|
OPERATING MARGIN
| |
19.7
|
%
|
19.1
|
%
|
60
| |
20.0
|
%
|
20.6
|
%
|
(60)
|
| | | | | | | | | | | |
|
CASH FLOW (THREE MONTHS ENDED SEPTEMBER
30) - SOURCE/(USE) | | | | | | |
| |
2013
|
|
2012
|
| | | | | | | |
OPERATING CASH FLOW
| |
$
|
2,044
| |
$
|
2,770
| | | | | | | | |
FREE CASH FLOW
| |
1,319
| |
1,965
| | | | | | | | |
DIVIDENDS
| |
(1,708
|
)
|
(1,605
|
)
| | | | | | | |
SHARE REPURCHASE
| |
(2,502
|
)
|
(2,584
|
)
| | | | | | | |
*Core excludes incremental restructuring charges, certain legal
reserves, a gain on the buyout of our Iberian JV, goodwill and
indefinite-lived intangible asset impairment charges, and balance
sheet remeasurement impact from Venezuela.
|
**Diluted net earnings per common share are calculated on net
earnings attributable to Procter & Gamble.
|
|
Forward-Looking Statements
Certain statements in this release or presentation, other than purely
historical information, including estimates, projections, statements
relating to our business plans, objectives and expected operating
results, and the assumptions upon which those statements are based, are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements generally are identified by the words
“believe,” “project,” “anticipate,” “estimate,” “expect,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and similar
expressions. Forward-looking statements are based on current
expectations and assumptions, which are subject to risks and
uncertainties that may cause results to differ materially from those
expressed or implied in the forward-looking statements. We undertake no
obligation to update or revise publicly any forward-looking statements,
whether because of new information, future events or otherwise.
Risks and uncertainties to which our forward-looking statements are
subject include, without limitation: (1) the ability to successfully
manage global financial, operational and manufacturing risks, including,
among others, (a) an increasingly volatile economic environment, with
potentially significant disruptions and reduced market growth rates, (b)
foreign currency fluctuations, (c) significant credit or liquidity
issues, (d) debt, currency exposure and repatriation issues in countries
with currency exchange, import authorization or pricing controls (such
as Venezuela, Argentina, China, India and Egypt), (e) maintaining key
manufacturing and supply sources (including sole supplier and sole
manufacturing plant arrangements), and (f) managing disruption of
business due to factors outside of our control, such as natural
disasters and acts of war or terrorism; (2) the ability to successfully
manage cost fluctuations and pressures, including commodity prices, raw
materials, labor costs, energy costs and pension and health care costs,
and achieve cost savings described in our announced productivity plan;
(3) the ability to stay on the leading edge of innovation, obtain
necessary intellectual property protections and successfully respond to
technological advances attained by, and patents granted to, competitors;
(4) the ability to compete with our local and global competitors by
successfully responding to competitive factors, including prices,
promotional incentives and trade terms for products; (5) the ability to
manage and maintain key customer relationships; (6) the ability to
protect our reputation and brand equity by successfully managing real or
perceived issues, including concerns about safety, quality, efficacy or
similar matters that may arise; (7) the ability to successfully manage
the financial, legal, reputational and operational risk associated with
third party relationships, such as our suppliers, contractors and
external business partners; (8) the ability to rely on and maintain key
information technology systems and networks (including Company and
third-party systems and networks) and maintain the security and
functionality of such systems and networks and the data contained
therein; (9) the ability to successfully manage regulatory, tax and
legal requirements and matters (including, without limitation, product
liability, intellectual property, price controls, import restrictions,
accounting standards and environmental and tax policy) and to resolve
pending matters within current estimates; (10) the ability to
successfully manage our portfolio optimization strategy, as well as
ongoing acquisition, divestiture and joint venture activities, to
achieve the Company’s overall business strategy, without impacting the
delivery of base business objectives; and (11) the ability to
successfully achieve productivity improvements and manage ongoing
organizational changes, while successfully identifying, developing and
retaining particularly key employees, especially in key growth markets
where the availability of skilled or experienced employees may be
limited. For additional information concerning factors that could cause
actual results to materially differ from those projected herein, please
refer to our most recent 10-K, 10-Q and 8-K reports.
About Procter & Gamble
P&G serves nearly five billion people around the world with its brands.
The Company has one of the strongest portfolios of trusted, quality,
leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®,
Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®,
Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®,
Tide®, Vicks®, Wella® and Whisper®. The P&G community includes
operations in approximately 70 countries worldwide. Please visit http://www.pg.com for
the latest news and in-depth information about P&G and its brands.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts)
|
Consolidated Earnings Information |
|
|
|
|
| Three Months Ended December 31 |
| Six Months Ended December 31 |
| 2014 |
| 2013 |
| % CHG |
| 2014 |
| 2013 |
| % CHG |
NET SALES |
$
|
20,161
| | |
$
|
21,099
| | |
(4
|
)%
|
|
$
|
40,347
| | |
$
|
41,273
| | |
(2
|
)%
|
COST OF PRODUCTS SOLD
|
10,083
|
| |
10,474
|
| |
(4
|
)%
| |
20,292
|
| |
20,682
|
| |
(2
|
)%
|
GROSS PROFIT |
10,078
| | |
10,625
| | |
(5
|
)%
| |
20,055
| | |
20,591
| | |
(3
|
)%
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
|
6,131
| | |
6,323
| | |
(3
|
)%
| |
12,330
| | |
12,319
| | |
—
|
%
|
OPERATING INCOME |
3,947
| | |
4,302
| | |
(8
|
)%
| |
7,725
| | |
8,272
| | |
(7
|
)%
|
INTEREST EXPENSE
|
160
| | |
185
| | |
(14
|
)%
| |
330
| | |
351
| | |
(6
|
)%
|
INTEREST INCOME
|
34
| | |
22
| | |
55
|
%
| |
65
| | |
44
| | |
48
|
%
|
OTHER NON-OPERATING INCOME, NET
|
19
|
| |
43
|
| |
(56
|
)%
| |
40
|
| |
48
|
| |
(17
|
)%
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
3,840
| | |
4,182
| | |
(8
|
)%
| |
7,500
| | |
8,013
| | |
(6
|
)%
|
INCOME TAXES ON CONTINUING OPERATIONS
|
865
|
| |
885
|
| |
(2
|
)%
| |
1,685
|
| |
1,782
|
| |
(5
|
)%
|
NET EARNINGS FROM CONTINUING OPERATIONS |
2,975
|
| |
3,297
|
| |
(10
|
)%
| |
5,815
|
| |
6,231
|
| |
(7
|
)%
|
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS |
(577
|
)
| |
175
|
| |
N/A
| |
(1,397
|
)
| |
298
|
| |
N/A
|
NET EARNINGS |
2,398
| | |
3,472
| | |
(31
|
)%
| |
4,418
| | |
6,529
| | |
(32
|
)%
|
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
26
|
| |
44
|
| |
(41
|
)%
| |
56
|
| |
74
|
| |
(24
|
)%
|
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE |
2,372
|
| |
3,428
|
| |
(31
|
)%
| |
4,362
|
| |
6,455
|
| |
(32
|
)%
|
| | | | | | | | | | | | | | | | |
|
EFFECTIVE TAX RATE
|
22.5
|
%
| |
21.2
|
%
| | | | |
22.5
|
%
| |
22.2
|
%
| | | |
| | | | | | | | | | | | | | | | |
|
NET EARNINGS PER COMMON SHARE: | | | | | | | | | | | | | | | | | |
EARNINGS FROM CONTINUING OPERATIONS
|
$
|
1.06
| | |
$
|
1.18
| | |
(10
|
)%
| |
$
|
2.08
| | |
$
|
2.21
| | |
(6
|
)%
|
EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS
|
$
|
(0.21
|
)
| |
$
|
0.06
| | |
N/A
| |
$
|
(0.52
|
)
| |
$
|
0.11
| | |
N/A
|
BASIC NET EARNINGS PER COMMON SHARE
|
$
|
0.85
| | |
$
|
1.24
| | |
(31
|
)%
| |
$
|
1.56
| | |
$
|
2.32
| | |
(33
|
)%
|
DILUTED NET EARNINGS PER COMMON SHARE: | | | | | | | | | | | | | | | | | |
EARNINGS FROM CONTINUING OPERATIONS
|
$
|
1.02
| | |
$
|
1.12
| | |
(9
|
)%
| |
$
|
2.00
| | |
$
|
2.11
| | |
(5
|
)%
|
EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS
|
$
|
(0.20
|
)
| |
$
|
0.06
| | |
N/A
| |
$
|
(0.49
|
)
| |
$
|
0.10
| | |
N/A
|
DILUTED NET EARNINGS PER COMMON SHARE
|
$
|
0.82
| | |
$
|
1.18
| | |
(31
|
)%
| |
$
|
1.51
| | |
$
|
2.21
| | |
(32
|
)%
|
DIVIDENDS PER COMMON SHARE
|
$
|
0.644
| | |
$
|
0.602
| | | | | |
$
|
1.287
| | |
$
|
1.203
| | | | |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
|
2,885.2
| | |
2,908.5
| | | | | |
2,886.8
| | |
2,916.4
| | | | |
| | | | | | | | | | | | | | | | |
|
COMPARISONS AS A % OF NET SALES | | | | | | | Basis Pt Change | | | | | | | | Basis Pt Change |
GROSS MARGIN
|
50.0
|
%
| |
50.4
|
%
| |
(40
|
)
| |
49.7
|
%
| |
49.9
|
%
| |
(20
|
)
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
|
30.4
|
%
| |
30.0
|
%
| |
40
| | |
30.6
|
%
| |
29.8
|
%
| |
80
| |
OPERATING MARGIN
|
19.6
|
%
| |
20.4
|
%
| |
(80
|
)
| |
19.1
|
%
| |
20.0
|
%
| |
(90
|
)
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
19.0
|
%
| |
19.8
|
%
| |
(80
|
)
| |
18.6
|
%
| |
19.4
|
%
| |
(80
|
)
|
NET EARNINGS FROM CONTINUING OPERATIONS
|
14.8
|
%
| |
15.6
|
%
| |
(80
|
)
| |
14.4
|
%
| |
15.1
|
%
| |
(70
|
)
|
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
|
11.8
|
%
| |
16.2
|
%
| |
(440
|
)
| |
10.8
|
%
| |
15.6
|
%
| |
(480
|
)
|
| | | | | | | | | | | | | | | | |
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions) |
Consolidated Earnings Information |
|
|
|
| | Three Months Ended December 31, 2014 |
| | |
| |
| Earnings/(Loss) |
| |
| |
| |
| | | | | | From | | | | | | |
| | | | | | Continuing | | | | Net | | |
| | | | % Change | | Operations | | % Change | | Earnings/(Loss) | | % Change |
| | | | Versus | | Before Income | | Versus | | From Continuing | | Versus |
| | Net Sales |
| Year Ago |
| Taxes |
| Year Ago |
| Operations |
| Year Ago |
Beauty, Hair and Personal Care
| |
$4,962
| | |
(6
|
)%
| |
$1,089
| | |
(6
|
)%
| |
$863
| | |
(7
|
)%
|
Grooming
| |
2,007
| | |
(5
|
)%
| |
713
| | |
(2
|
)%
| |
544
| | |
(2
|
)%
|
Health Care
| |
2,088
| | |
(3
|
)%
| |
514
| | |
(2
|
)%
| |
369
| | |
(1
|
)%
|
Fabric Care and Home Care
| |
5,775
| | |
(4
|
)%
| |
1,083
| | |
(6
|
)%
| |
706
| | |
(6
|
)%
|
Baby, Feminine and Family Care
| |
5,217
| | |
(2
|
)%
| |
1,117
| | |
2
|
%
| |
760
| | |
(1
|
)%
|
Corporate
| |
112
|
|
|
N/A
|
|
(676
|
)
|
|
N/A
|
|
(267
|
)
|
|
N/A
|
Total Company | | 20,161 |
|
| (4 | )% |
| 3,840 |
|
| (8 | )% |
| 2,975 |
|
| (10 | )% |
|
| |
| | Three Months Ended December 31, 2014 |
| | (Percent Change vs. Year Ago)* |
| | |
| Volume |
| |
| |
| |
| |
| |
| | Volume with | | excluding | | | | | | | | | | |
| | Acquisitions | | Acquisitions | | | | | | | | | | |
| | & | | & | | Foreign | | | | | | | | Net Sales |
| | Divestitures |
| Divestitures |
| Exchange |
| Price |
| Mix |
| Other |
| Growth |
Beauty, Hair and Personal Care
| |
(2)%
| |
(2)%
| |
(4)%
| |
1%
| |
—%
| |
(1)%
| |
(6)%
|
Grooming
| |
(2)%
| |
(2)%
| |
(7)%
| |
4%
| |
—%
| |
—%
| |
(5)%
|
Health Care
| |
(2)%
| |
(2)%
| |
(4)%
| |
—%
| |
3%
| |
—%
| |
(3)%
|
Fabric Care and Home Care
| |
2%
| |
2%
| |
(6)%
| |
1%
| |
—%
| |
(1)%
| |
(4)%
|
Baby, Feminine and Family Care
| |
—%
|
|
—%
|
|
(6)%
|
|
1%
|
|
3%
|
|
—%
|
|
(2)%
|
Total Company | | —% |
| —% |
| (5)% |
| 1% |
| 1% |
| (1)% |
|
(4)%
|
Sales percentage changes are approximations based on quantitative
formulas that are consistently applied.
|
*Other includes the sales mix impact of acquisitions/divestitures
and rounding impacts necessary to reconcile volume to net sales.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions) |
Consolidated Earnings Information |
|
|
|
| | Six Months Ended December 31, 2014 |
| | |
| |
| Earnings/(Loss) |
| |
| |
| |
| | | | | | From | | | | | | |
| | | | | | Continuing | | | | Net | | |
| | | | % Change | | Operations | | % Change | | Earnings/(Loss) | | % Change |
| | | | Versus | | Before Income | | Versus | | From Continuing | | Versus |
| | Net Sales |
| Year Ago |
| Taxes |
| Year Ago |
| Operations |
| Year Ago |
Beauty, Hair and Personal Care
| |
$9,819
| | |
(4
|
)%
| |
$2,015
| | |
(3
|
)%
| |
$1,573
| | |
(3
|
)%
|
Grooming
| |
3,948
| | |
(3
|
)%
| |
1,334
| | |
—
|
%
| |
1,010
| | |
—
|
%
|
Health Care
| |
4,099
| | |
1
|
%
| |
973
| | |
7
|
%
| |
691
| | |
8
|
%
|
Fabric Care and Home Care
| |
11,708
| | |
(3
|
)%
| |
2,164
| | |
(7
|
)%
| |
1,425
| | |
(7
|
)%
|
Baby, Feminine and Family Care
| |
10,539
| | |
—
|
%
| |
2,319
| | |
6
|
%
| |
1,585
| | |
6
|
%
|
Corporate
| |
234
|
|
|
N/A
|
|
(1,305
|
)
|
|
N/A
|
|
(469
|
)
|
|
N/A
|
Total Company | | 40,347 |
|
| (2 | )% |
| 7,500 |
|
| (6 | )% |
| 5,815 |
|
| (7 | )% |
|
| |
| | Six Months Ended December 31, 2014 |
| | (Percent Change vs. Year Ago)* |
| | |
| Volume |
| |
| |
| |
| |
| |
| | Volume with | | excluding | | | | | | | | | | |
| | Acquisitions | | Acquisitions | | | | | | | | | | |
| | & | | & | | Foreign | | | | | | | | Net Sales |
| | Divestitures |
| Divestitures |
| Exchange |
| Price |
| Mix |
| Other |
| Growth |
Beauty, Hair and Personal Care
| |
(2)%
| |
(1)%
| |
(3)%
| |
—%
| |
—%
| |
1%
| |
(4)%
|
Grooming
| |
(2)%
| |
(2)%
| |
(4)%
| |
4%
| |
(1)%
| |
—%
| |
(3)%
|
Health Care
| |
1%
| |
1%
| |
(2)%
| |
—%
| |
2%
| |
—%
| |
1%
|
Fabric Care and Home Care
| |
2%
| |
2%
| |
(4)%
| |
—%
| |
—%
| |
(1)%
| |
(3)%
|
Baby, Feminine and Family Care
| |
—%
|
|
—%
|
|
(4)%
|
|
2%
|
|
2%
|
|
—%
|
|
—%
|
Total Company | | —% |
| —% |
| (3)% |
| 1% |
| 1% |
| (1)% |
| (2)% |
Sales percentage changes are approximations based on quantitative
formulas that are consistently applied.
|
*Other includes the sales mix impact of acquisitions/divestitures
and rounding impacts necessary to reconcile volume to net sales.
|
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Consolidated Statement of Cash Flows |
|
|
|
| | Six Months Ended December 31 |
| | 2014 |
| 2013 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | |
$
|
8,558
| | |
$
|
5,947
| |
OPERATING ACTIVITIES | | | | | | |
NET EARNINGS
| |
4,418
| | |
6,529
| |
DEPRECIATION AND AMORTIZATION
| |
1,540
| | |
1,526
| |
SHARE BASED COMPENSATION EXPENSE
| |
151
| | |
153
| |
DEFERRED INCOME TAXES
| |
31
| | |
(126
|
)
|
GAIN ON PURCHASE/SALE OF BUSINESSES
| |
(299
|
)
| |
(5
|
)
|
GOODWILL AND INDEFINITE LIVED INTANGIBLES IMPAIRMENT CHARGES
| |
1,713
| | |
—
| |
CHANGES IN:
| | | | | | |
ACCOUNTS RECEIVABLE
| |
(342
|
)
| |
(376
|
)
|
INVENTORIES
| |
(506
|
)
| |
(446
|
)
|
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES
| |
243
| | |
(1,191
|
)
|
OTHER OPERATING ASSETS & LIABILITIES
| |
(164
|
)
| |
(859
|
)
|
OTHER
| |
283
|
| |
138
|
|
TOTAL OPERATING ACTIVITIES | |
7,068
|
| |
5,343
|
|
INVESTING ACTIVITIES | | | | | | |
CAPITAL EXPENDITURES
| |
(1,642
|
)
| |
(1,663
|
)
|
PROCEEDS FROM ASSET SALES
| |
3,648
| | |
15
| |
ACQUISITIONS, NET OF CASH ACQUIRED
| |
(112
|
)
| |
1
| |
PURCHASES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES
| |
(2,106
|
)
| |
—
| |
PROCEEDS FROM SALES/MATURITIES OF AVAILABLE-FOR-SALE INVESTMENT
SECURITIES
| |
179
| | |
—
| |
CHANGE IN OTHER INVESTMENTS
| |
(836
|
)
| |
(149
|
)
|
TOTAL INVESTING ACTIVITIES | |
(869
|
)
| |
(1,796
|
)
|
FINANCING ACTIVITIES | | | | | | |
DIVIDENDS TO SHAREHOLDERS
| |
(3,614
|
)
| |
(3,409
|
)
|
CHANGE IN SHORT-TERM DEBT
| |
352
| | |
(429
|
)
|
ADDITIONS TO LONG-TERM DEBT
| |
1,112
| | |
4,271
| |
REDUCTION OF LONG-TERM DEBT
| |
(1,911
|
)
| |
(3
|
)
|
TREASURY STOCK PURCHASES
| |
(4,253
|
)
| |
(4,004
|
)
|
IMPACT OF STOCK OPTIONS AND OTHER
| |
2,009
|
| |
937
|
|
TOTAL FINANCING ACTIVITIES | |
(6,305
|
)
| |
(2,637
|
)
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | |
(248
|
)
| |
72
|
|
CHANGE IN CASH AND CASH EQUIVALENTS | |
(354
|
)
| |
982
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD | |
$
|
8,204
|
| |
$
|
6,929
|
|
| | | | | | | |
|
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES |
(Amounts in Millions Except Per Share Amounts) |
Condensed Consolidated Balance Sheet |
|
| |
| |
| | December 31, 2014 | | June 30, 2014 |
CASH AND CASH EQUIVALENTS
| |
$
|
8,204
| | |
$
|
8,558
|
AVAILABLE-FOR-SALE INVESTMENTS SECURITIES
| |
4,047
| | |
2,128
|
NET ACCOUNTS RECEIVABLE
| |
5,802
| | |
6,386
|
TOTAL INVENTORIES
| |
6,477
| | |
6,759
|
ASSETS HELD FOR SALE
| |
4,153
| | |
2,849
|
OTHER
| |
4,495
|
| |
4,937
|
TOTAL CURRENT ASSETS | |
33,178
| | |
31,617
|
NET PROPERTY, PLANT AND EQUIPMENT, NET
| |
20,745
| | |
22,304
|
NET GOODWILL AND OTHER INTANGIBLE ASSETS
| |
76,442
| | |
84,547
|
OTHER NON-CURRENT ASSETS
| |
5,898
|
| |
5,798
|
TOTAL ASSETS | |
$
|
136,263
|
| |
$
|
144,266
|
ACCOUNTS PAYABLE
| |
7,733
| | |
8,461
|
ACCRUED EXPENSES AND OTHER LIABILITIES
| |
8,853
| | |
8,999
|
LIABILITIES HELD FOR SALE
| |
1,237
| | |
660
|
DEBT DUE WITHIN ONE YEAR
| |
16,329
|
| |
15,606
|
TOTAL CURRENT LIABILITIES | |
34,152
| | |
33,726
|
LONG-TERM DEBT
| |
18,124
| | |
19,811
|
OTHER
| |
19,175
|
| |
20,753
|
TOTAL LIABILITIES | |
71,451
|
| |
74,290
|
TOTAL SHAREHOLDERS' EQUITY | |
64,812
|
| |
69,976
|
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | |
$
|
136,263
|
| |
$
|
144,266
|
The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
In accordance with the SEC's Regulation G, the following provides
definitions of the non-GAAP measures used in the earnings release and
the reconciliation to the most closely related GAAP measure.
Organic Sales Growth: Organic sales growth
is a non-GAAP measure of sales growth excluding the impacts of
acquisitions, divestitures and foreign exchange from year-over-year
comparisons. We believe this provides investors with a more complete
understanding of underlying sales trends by providing sales growth on a
consistent basis. Organic sales is also one of the measures used to
evaluate senior management and is a factor in determining their at-risk
compensation.
The reconciliation of reported sales growth to organic sales is as
follows:
|
| |
| Foreign |
| Acquisition/ |
| |
| | Net Sales | | Exchange | | Divestiture | | Organic Sales |
October - December 2014 | | Growth | | Impact | | Impact* | | Growth |
Beauty, Hair and Personal Care
| |
(6)%
| |
4%
| |
1%
| |
(1)%
|
Grooming
| |
(5)%
| |
7%
| |
0%
| |
2%
|
Health Care
| |
(3)%
| |
4%
| |
0%
| |
1%
|
Fabric Care and Home Care
| |
(4)%
| |
6%
| |
1%
| |
3%
|
Baby, Feminine and Family Care
|
|
(2)%
|
|
6%
|
|
0%
|
|
4%
|
Total P&G |
| (4)% |
| 5% |
| 1% |
| 2% |
|
| |
|
Foreign Exchange
|
|
Acquisition/
|
|
Organic Sales
|
Total P&G
| |
Net Sales Growth
| |
Impact
| |
Divestiture Impact*
|
|
Growth
|
FY 2015 (Estimate)
| |
(3) to (4)%
| |
5%
| |
1%
| |
Low-to-mid single digit
|
*Acquisition/Divestiture Impact includes volume and mix impacts of
acquired and divested businesses, as well as rounding impacts
necessary to reconcile net sales to organic sales.
|
|
Core EPS and Currency-neutral Core EPS:
Core EPS is a measure of the Company's diluted net earnings per share
from continuing operations excluding charges in both years for European
legal matters and incremental restructuring due to increased focus on
productivity and cost savings. We do not view these items to be part of
our sustainable results. We believe the Core EPS measure provides an
important perspective of underlying business trends and results and
provides a more comparable measure of year-on-year earnings per share
growth. Core EPS is also one of the measures used to evaluate senior
management and is a factor in determining their at-risk compensation.
Currency-neutral Core EPS is a measure of the Company's Core EPS
excluding the impact of foreign exchange. We believe the
currency-neutral Core EPS measure provides a more comparable view of
year-on-year earnings per share growth.
The table below provides a reconciliation of diluted net earnings per
share to Core EPS and Core EPS to Currency-neutral Core EPS:
|
| OND 14 |
| OND 13 |
Diluted Net Earnings Per Share | | $0.82 | | $1.18 |
Earnings from Discontinued Operations
| |
0.20
| |
(0.06)
|
Diluted Net Earnings Per Share from Continuing Operations | | 1.02 | | 1.12 |
Incremental Restructuring
| |
0.03
| |
0.03
|
Charges for European Legal Matters
| |
0.01
| |
—
|
Core EPS | | $1.06 | | $1.15 |
Percentage change vs. prior period | | (8)% | | |
Currency Impact to Earnings
| |
$0.16
| | |
Currency-neutral Core EPS | | $1.22 | | |
Percentage change vs. prior period | | 6% | | |
Note – All reconciling items are presented net of tax. Tax effects
are calculated consistent with the nature of the underlying
transaction.
|
|
|
| |
|
Impact of
|
| |
| |
|
Currency-
|
| |
Diluted EPS
| |
Incremental
| |
Core EPS
| |
Foreign
| |
Neutral Core
|
Total P&G
| |
Growth
| |
Non-Core Items
| |
Growth
| |
Exchange Impact
| |
EPS Growth
|
FY 2015 (Estimate)
| |
Down mid-teens
| |
Approximately 14%
| |
in-line to down low single digits
| |
Approximately 12%
| |
Double digit growth
|
Core Operating Profit Margin: This is a
measure of the Company's Operating Margin adjusted for charges in both
years for incremental restructuring due to increased focus on
productivity and cost savings and charges for European legal matters:
|
| OND 14 |
| OND 13 |
Operating Profit Margin | | 19.6 | % | | 20.4 | % |
Incremental Restructuring
| |
0.5
|
%
| |
0.4
|
%
|
Charges for European Legal Matters
| |
0.2
|
%
| |
—
|
%
|
Rounding
| |
(0.1
|
)%
| |
—
|
%
|
Core Operating Profit Margin | | 20.2 | % | | 20.8 | % |
Basis point change | | -60 | | | | |
Core Gross Margin: This is a measure of the
Company's gross margin adjusted for the charges in both years for
incremental restructuring due to increased focus on productivity and
cost savings:
|
| OND 14 |
| OND 13 |
Gross Margin | | 50.0 | % | | 50.4 | % |
Incremental Restructuring
| |
0.4
|
%
| |
0.2
|
%
|
Rounding
| |
—
|
| |
—
|
|
Core Gross Margin | | 50.4 | % | | 50.6 | % |
Basis point change | | -20 | | | | |
Core Selling, General and Administrative Expense
(SG&A) as a percentage of sales: This is a measure of the
Company's SG&A as a percentage of sales adjusted for charges in both
years for incremental restructuring due to increased focus on
productivity and cost savings and charges for European legal matters:
|
| OND 14 |
| OND 13 |
SG&A as a % of NOS | | 30.4 | % | | 30.0 | % |
Incremental Restructuring
| |
(0.1
|
)%
| |
(0.2
|
)%
|
Charges for European Legal Matters
| |
(0.2
|
)%
| |
—
|
%
|
Core SG&A as a % of NOS | | 30.1 | % | | 29.8 | % |
Basis point change | | 30 | | | | |
Core Tax Rate: This is a measure of the
Company's tax rate adjusted for the current and prior year tax impacts
related to the impacts of incremental restructuring and charges for
European legal matters:
|
| OND 14 |
| OND 13 |
Effective Tax Rate | | 22.5 | % | | 21.2 | % |
Incremental Restructuring
| |
—
|
%
| |
(0.2
|
)%
|
Charges for European Legal Matters (Non-Tax-Deductible)
| |
(0.2
|
)%
| |
—
|
%
|
Core Tax Rate | | 22.3 | % | | 21.0 | % |
Basis point change | | 130 | | | | |
Adjusted free cash flow: Adjusted free cash
flow is defined as operating cash flow less capital spending excluding
tax payments for the Pet divestiture. We view adjusted free cash flow as
an important measure because it is one factor used in determining the
amount of cash available for dividends and discretionary investment. The
reconciliation of adjusted free cash flow is provided below (amounts in
millions):
|
| |
| |
| |
|
Cash Tax
|
| |
| |
Operating Cash
| |
Capital
| | | |
Payment - Pet
| |
Adjusted Free
|
|
|
Flow
|
|
Spending
|
|
Free Cash Flow
|
|
Sale
|
|
Cash Flow
|
Fiscal year-to-date December 31, 2014
|
|
$7,068
|
|
$(1,642)
|
|
$5,426
|
|
$363
|
|
$5,789
|
Adjusted free cash flow productivity:
Adjusted free cash flow productivity is defined as the ratio of adjusted
free cash flow to net earnings excluding impairment charges. The
Company's long-term target is to generate annual free cash flow at or
above 90 percent of net earnings. Adjusted free cash flow productivity
is also a measure used to evaluate senior management and is a factor in
determining their at-risk compensation. The reconciliation of adjusted
free cash flow productivity is provided below:
|
|
Adjusted
|
| |
| |
| |
|
Adjusted Free
|
| |
Free Cash
| |
Net
| |
Impairment
| |
Net Earnings Excl.
| |
Cash Flow
|
|
|
Flow
|
|
Earnings
|
|
Charges
|
|
Impairment Charges
|
|
Productivity
|
Fiscal year-to-date December 31, 2014
|
|
$5,789
|
|
$4,418
|
|
$1,672
|
|
$6,090
|
|
95%
|
The Procter & Gamble Company
Exhibit 2: Non-GAAP Measures - Prior Period Results
In accordance with the SEC's Regulation G, the following provides
definitions of the non-GAAP measures used in the Selected Financial
Information Restated for Batteries Discontinued Operations and the
reconciliation to the most closely related GAAP measure.
Core EPS: Core EPS is a measure of the
Company's diluted net earnings per share from continuing operations
excluding incremental restructuring charges, certain legal reserves, a
gain on the buyout of our Iberian JV, goodwill and indefinite-lived
intangible asset impairment charges, and balance sheet remeasurement and
devaluation impacts from Venezuela. We believe the Core EPS measure
provides an important perspective of underlying business trends and
results and provides a more comparable measure of year-on-year earnings
per share growth. Core EPS is also one of the measures used to evaluate
senior management and is a factor in determining their at-risk
compensation.
CORE EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 |
Diluted Net Earnings Per Share from Continuing Operations,
attributable to P&G | | $ | 0.97 | |
| $ | 1.00 | |
| $ | 0.92 |
| $ | 1.12 | |
| $ | 1.33 | |
| $ | 0.87 | |
| $ | 0.85 |
| $ | 0.87 | |
| $ | 0.61 |
| $ | 3.86 | |
| $ | 3.71 | |
Incremental Restructuring
| | |
0.03
| | | |
0.02
| | | |
0.08
| | |
0.03
| | | |
0.04
| | | |
0.04
| | | |
0.03
| | |
0.04
| | | |
0.01
| | |
0.12
| | | |
0.17
| |
Venezuela B/S Remeasurement & Devaluation Impacts
| | |
0.04
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
0.10
| | | |
0.08
| | |
-
| | | |
-
| | |
0.09
| | | |
0.08
| |
Charges for Pending European Legal Matters
| | |
-
| | | |
-
| | | |
0.01
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
0.02
| | | |
0.04
| | |
0.02
| | | |
0.05
| |
Goodwill & Intangible Impairment
| | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
0.10
| | |
-
| | | |
0.10
| |
Gain on Buyout of Iberian JV
| | |
-
| | | |
-
| | | |
-
| | |
-
| | | |
(0.21
|
)
| | |
-
| | | |
-
| | |
-
| | | |
-
| | |
-
| | | |
(0.21
|
)
|
Rounding
| |
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(0.01
|
)
|
Core EPS | | $ | 1.04 | | | $ | 1.01 | | | $ | 1.01 | | $ | 1.15 | | | $ | 1.16 | | | $ | 1.00 | | | $ | 0.96 | | $ | 0.93 | | | $ | 0.76 | | $ | 4.09 | | | $ | 3.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Percentage change vs. prior period | | | 3 | % | | | — | % | | | | | (1 | )% | | | | | 4 | % | | | | | 22 | % | | | | | 5 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core Gross Margin: This is a measure of the
Company's gross margin adjusted for incremental restructuring charges
due to increased focus on productivity and cost savings:
CORE GROSS MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 |
Gross Margin | | 49.4 | % |
| 49.4 | % |
| 50.5 | % |
| 50.4 | % |
| 51.3 | % |
| 48.9 | % |
| 50.3 | % |
| 47.5 | % |
| 48.1 | % |
| 49.1 | % |
| 50.1 | % |
Incremental Restructuring
| |
0.5
|
%
| |
0.3
|
%
| |
0.5
|
%
| |
0.2
|
%
| |
0.2
|
%
| |
0.5
|
%
| |
0.3
|
%
| |
0.5
|
%
| |
0.3
|
%
| |
0.4
|
%
| |
0.3
|
%
|
Rounding
| |
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.1
|
%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
|
-
|
|
|
-
|
|
|
(0.1
|
)%
|
|
-
|
|
Core Gross Margin | | 49.9 | % | | 49.7 | % | | 51.0 | % | | 50.6 | % | | 51.6 | % | | 49.3 | % | | 50.5 | % | | 48.0 | % | | 48.4 | % | | 49.4 | % | | 50.4 | % |
Basis point change | | 20 | | | -130 | | | | | -100 | | | | | -120 | | | | | -40 | | | | | -100 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core Selling, General and Administrative Expense
(SG&A) as a percentage of sales: This is a measure of the
Company's SG&A as a percentage of sales adjusted for incremental
restructuring charges, certain legal reserves, and balance sheet
remeasurement and devaluation impacts from Venezuela:
CORE SG&A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 |
SG&A as a % of NOS | | 30.7 | % |
| 29.7 | % |
| 31.5 | % |
| 30.0 | % |
| 31.1 | % |
| 32.1 | % |
| 33.6 | % |
| 31.4 | % |
| 33.7 | % |
| 30.8 | % |
| 32.5 | % |
Incremental Restructuring
| |
-
| | |
-
| | |
(1.0
|
)%
| |
(0.2
|
)%
| |
(0.5
|
)%
| |
(0.2
|
)%
| |
(0.3
|
)%
| |
(0.2
|
)%
| |
-
| | |
(0.2
|
)%
| |
(0.4
|
)%
|
Charges for Pending European Legal Matters
| |
-
| | |
-
| | |
(0.1
|
)%
| |
-
| | |
-
| | |
-
| | |
-
| | |
(0.3
|
)%
| |
(0.5
|
)%
| |
(0.1
|
)%
| |
(0.2
|
)%
|
Venezuela B/S Remeasurement & Devaluation Impacts
| |
(0.7
|
)%
| |
-
| | |
-
| | |
-
| | |
-
| | |
(1.5
|
)%
| |
(1.8
|
)%
| |
-
| | |
-
| | |
(0.4
|
)%
| |
(0.4
|
)%
|
Rounding
| |
-
|
|
|
-
|
|
|
(0.1
|
)%
|
|
-
|
|
|
0.1
|
%
|
|
(0.1
|
)%
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.1
|
%
|
|
(0.1
|
)%
|
Core SG&A as a % of NOS | | 30.0 | % | | 29.7 | % | | 30.3 | % | | 29.8 | % | | 30.7 | % | | 30.3 | % | | 31.5 | % | | 30.9 | % | | 33.2 | % | | 30.2 | % | | 31.4 | % |
Basis point change | | 30 | | | -60 | | | | | -90 | | | | | -120 | | | | | -230 | | | | | -120 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core Operating Profit Margin: This is a
measure of the Company's Operating Margin adjusted for incremental
restructuring charges, certain legal reserves, goodwill and
indefinite-lived asset impairment charges, and balance sheet
remeasurement and devaluation impacts from Venezuela:
CORE OPERATING MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 |
Operating Profit Margin | | 18.7 | % |
| 19.7 | % |
| 19.1 | % |
| 20.4 | % |
| 20.2 | % |
| 16.8 | % |
| 16.7 | % |
| 16.1 | % |
| 12.8 | % |
| 18.3 | % |
| 17.2 | % |
Incremental Restructuring
| |
0.5
|
%
| |
0.3
|
%
| |
1.4
|
%
| |
0.4
|
%
| |
0.7
|
%
| |
0.7
|
%
| |
0.6
|
%
| |
0.7
|
%
| |
0.3
|
%
| |
0.5
|
%
| |
0.7
|
%
|
Charges for Pending European Legal Matters
| |
-
| | |
-
| | |
0.1
|
%
| |
-
| | |
-
| | |
-
| | |
-
| | |
0.3
|
%
| |
0.5
|
%
| |
0.1
|
%
| |
0.2
|
%
|
Venezuela B/S Remeasurement & Devaluation Impacts
| |
0.7
|
%
| |
-
| | |
-
| | |
-
| | |
-
| | |
1.5
|
%
| |
1.8
|
%
| |
-
| | |
-
| | |
0.4
|
%
| |
0.4
|
%
|
Goodwill & Intangible Impairment
| |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
1.6
|
%
| |
-
| | |
0.4
|
%
|
Rounding
| |
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1
|
)%
|
|
0.1
|
%
|
|
-
|
|
|
-
|
|
|
0.1
|
%
|
Core Operating Profit Margin | | 19.9 | % | | 20.0 | % | | 20.6 | % | | 20.8 | % | | 20.9 | % | | 19.0 | % | | 19.0 | % | | 17.2 | % | | 15.2 | % | | 19.3 | % | | 19.0 | % |
Basis point change | | -10 | | | -60 | | | | | -10 | | | | | 0 | | | | | 200 | | | | | 30 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Core Tax Rate: This is a measure of the
Company's tax rate adjusted for the tax impacts of incremental
restructuring charges, certain legal reserves, a gain on the buyout of
our Iberian JV, goodwill and indefinite-lived intangible asset
impairment charges, and balance sheet remeasurement and devaluation
impacts from Venezuela:
CORE TAX RATE | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 | |
Effective Tax Rate | | 22.4 | % |
| 23.4 | % |
| 24.9 | % |
| 21.2 | % |
| 21.3 | % |
| 20.3 | % |
| 20.9 | % |
| 18.8 | % |
| 24.9 | % |
| 21.1 | % |
| 22.8 | % | |
Incremental Restructuring
| |
(0.1
|
)%
| |
(0.1
|
)%
| |
(1.1
|
)%
| |
(0.2
|
)%
| |
(0.3
|
)%
| |
0.1
|
%
| |
-
| | |
0.2
|
%
| |
0.1
|
%
| |
(0.1
|
)%
| |
(0.3
|
)%
| |
Pending European Legal Matters (Non-Tax-Deductible)
| |
-
| | |
-
| | |
(0.1
|
)%
| |
-
| | |
-
| | |
-
| | |
-
| | |
(0.3
|
)%
| |
(0.8
|
)%
| |
(0.1
|
)%
| |
(0.2
|
)%
| |
Venezuela B/S Remeasurement & Devaluation Impacts
| |
0.1
|
%
| |
-
| | |
-
| | |
-
| | |
-
| | |
(1.3
|
)%
| |
1.1
|
%
| |
-
| | |
-
| | |
(0.3
|
)%
| |
0.2
|
%
| |
Goodwill & Intangible Impairment
| |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
(2.2
|
)%
| |
-
| | |
(0.4
|
)%
| |
Gain on Buyout of Iberian JV
| |
-
| | |
-
| | |
-
| | |
-
| | |
2.9
|
%
| |
-
| | |
-
| | |
-
| | |
-
| | |
-
| | |
1.0
|
%
| |
Rounding
| |
-
|
|
|
0.1
|
%
|
|
0.1
|
%
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(0.1
|
)%
| |
Core Tax Rate | | 22.4 | % | | 23.4 | % | | 23.8 | % | | 21.0 | % | | 23.9 | % | | 19.1 | % | | 22.0 | % | | 18.7 | % | | 22.0 | % | | 20.6 | % | | 23.0 | % | |
Basis point change | | -100 | | | -40 | | | | | -290 | | | | | -290 | | | | | -330 | | | | | -240 | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
Free Cash Flow: Free cash flow is defined
as operating cash flow less capital spending. We view free cash flow as
an important measure because it is one factor in determining the amount
of cash available for dividends and discretionary investment. The
reconciliation of free cash flow is provided below (amounts in millions):
FREE CASH FLOW |
|
| |
| |
| |
| |
| | Three Months Ended |
| Six Months Ended |
| Nine Months Ended |
| Year Ended |
| | JAS 14 |
| JAS 13 |
| JAS 12 |
| OND 13 |
| OND 12 |
| JFM 14 |
| JFM 13 |
| AMJ 14 |
| AMJ 13 |
| FY 14 |
| FY 13 |
Operating Cash Flow
| |
3,633
|
|
2,044
|
|
2,770
| |
5,343
|
|
6,619
| |
9,452
|
|
10,481
| |
13,958
|
|
14,873
|
|
13,958
|
|
14,873
|
Capital Expenditures
| |
(810)
|
|
(725)
|
|
(805)
|
|
(1,663)
|
|
(1,529)
|
|
(2,607)
|
|
(2,426)
|
|
(3,848)
|
|
(4,008)
|
|
(3,848)
|
|
(4,008)
|
Free Cash Flow | | 2,823 | | 1,319 | | 1,965 | | 3,680 | | 5,090 | | 6,845 | | 8,055 | | 10,110 | | 10,865 | | 10,110 | | 10,865 |
Contacts:
P&G Media Contacts
Paul
Fox, 513-983-3465
Jennifer Corso, 513-983-2570
or
P&G
Investor Relations Contact
John Chevalier, 513-983-9974
Source: Procter & Gamble
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