Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Colgate-Palmolive Co., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	3,352)	3,284)	3,824)	3,508)	2,530)
Trademarks	885)	891)	902)	771)	771)
Other	616)	744)	786)	699)	390)
Finite life intangible assets, gross carrying amount	1,501)	1,635)	1,688)	1,470)	1,161)
Accumulated amortization	(793)	(734)	(659)	(550)	(491)
Finite life intangible assets, net	708)	901)	1,029)	920)	670)
Indefinite life intangible assets	1,212)	1,561)	1,865)	1,747)	967)
Other intangible assets	1,920)	2,462)	2,894)	2,667)	1,637)
Goodwill and other intangible assets	5,272)	5,746)	6,718)	6,175)	4,167)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Colgate-Palmolive Co. goodwill decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Other intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Colgate-Palmolive Co. other intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Colgate-Palmolive Co. goodwill and other intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	15,731)	15,040)	15,920)	15,034)	12,161)
Less: Goodwill	3,352)	3,284)	3,824)	3,508)	2,530)
Total assets (adjusted)	12,379)	11,756)	12,096)	11,526)	9,631)
Adjustment to Total Colgate-Palmolive Company Shareholders’ Equity
Total Colgate-Palmolive Company shareholders’ equity (as reported)	401)	609)	743)	117)	(102)
Less: Goodwill	3,352)	3,284)	3,824)	3,508)	2,530)
Total Colgate-Palmolive Company shareholders’ equity (adjusted)	(2,951)	(2,675)	(3,081)	(3,391)	(2,632)
Adjustment to Net Income Attributable To Colgate-Palmolive Company
Net income attributable to Colgate-Palmolive Company (as reported)	1,785)	2,166)	2,695)	2,367)	2,400)
Add: Goodwill impairment charge	332)	367)	—)	—)	—)
Net income attributable to Colgate-Palmolive Company (adjusted)	2,117)	2,533)	2,695)	2,367)	2,400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Colgate-Palmolive Co., Financial Data: Reported vs. Adjusted

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Colgate-Palmolive Co., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	9.93%	12.43%	16.36%	15.08%	15.44%
Adjusted net profit margin	11.78%	14.54%	16.36%	15.08%	15.44%
Total Asset Turnover
Reported total asset turnover	1.14	1.16	1.03	1.04	1.28
Adjusted total asset turnover	1.45	1.48	1.36	1.36	1.61
Financial Leverage
Reported financial leverage	39.23	24.70	21.43	128.50	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	445.14%	355.67%	362.72%	2,023.08%	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	11.35%	14.40%	16.93%	15.74%	19.74%
Adjusted ROA	17.10%	21.55%	22.28%	20.54%	24.92%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Colgate-Palmolive Co. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Colgate-Palmolive Co. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Colgate-Palmolive Co. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Profitability Ratio
Net profit margin¹	9.93%	12.43%	16.36%	15.08%	15.44%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	2,117)	2,533)	2,695)	2,367)	2,400)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Profitability Ratio
Adjusted net profit margin²	11.78%	14.54%	16.36%	15.08%	15.44%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 1,785 ÷ 17,967 = 9.93%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Net sales
= 100 × 2,117 ÷ 17,967 = 11.78%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Colgate-Palmolive Co. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Activity Ratio
Total asset turnover¹	1.14	1.16	1.03	1.04	1.28
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Adjusted total assets	12,379)	11,756)	12,096)	11,526)	9,631)
Activity Ratio
Adjusted total asset turnover²	1.45	1.48	1.36	1.36	1.61

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 17,967 ÷ 15,731 = 1.14

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 17,967 ÷ 12,379 = 1.45

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Colgate-Palmolive Co. adjusted total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Total Colgate-Palmolive Company shareholders’ equity	401)	609)	743)	117)	(102)
Solvency Ratio
Financial leverage¹	39.23	24.70	21.43	128.50	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	12,379)	11,756)	12,096)	11,526)	9,631)
Adjusted total Colgate-Palmolive Company shareholders’ equity	(2,951)	(2,675)	(3,081)	(3,391)	(2,632)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Colgate-Palmolive Company shareholders’ equity
= 15,731 ÷ 401 = 39.23

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Colgate-Palmolive Company shareholders’ equity
= 12,379 ÷ -2,951 = —

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Total Colgate-Palmolive Company shareholders’ equity	401)	609)	743)	117)	(102)
Profitability Ratio
ROE¹	445.14%	355.67%	362.72%	2,023.08%	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	2,117)	2,533)	2,695)	2,367)	2,400)
Adjusted total Colgate-Palmolive Company shareholders’ equity	(2,951)	(2,675)	(3,081)	(3,391)	(2,632)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total Colgate-Palmolive Company shareholders’ equity
= 100 × 1,785 ÷ 401 = 445.14%

² Adjusted ROE = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Adjusted total Colgate-Palmolive Company shareholders’ equity
= 100 × 2,117 ÷ -2,951 = —

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Total assets	15,731)	15,040)	15,920)	15,034)	12,161)
Profitability Ratio
ROA¹	11.35%	14.40%	16.93%	15.74%	19.74%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	2,117)	2,533)	2,695)	2,367)	2,400)
Adjusted total assets	12,379)	11,756)	12,096)	11,526)	9,631)
Profitability Ratio
Adjusted ROA²	17.10%	21.55%	22.28%	20.54%	24.92%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to Colgate-Palmolive Company ÷ Total assets
= 100 × 1,785 ÷ 15,731 = 11.35%

² Adjusted ROA = 100 × Adjusted net income attributable to Colgate-Palmolive Company ÷ Adjusted total assets
= 100 × 2,117 ÷ 12,379 = 17.10%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Colgate-Palmolive Co. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co. (NYSE:CL)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Colgate-Palmolive Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Colgate-Palmolive Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)