Colgate-Palmolive Co., balance sheet: debt

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Notes and loans payable	11)	39)	258)	260)	12)
Current portion of long-term debt	14)	12)	9)	254)	—)
Long-term debt, excluding current portion	8,741)	7,194)	7,334)	7,333)	6,354)
Total debt (carrying amount)	8,766)	7,245)	7,601)	7,847)	6,366)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Colgate-Palmolive Co. total debt decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022
Selected Financial Data (US$ in millions)
Notes and loans payable	11)
Long-term debt, including current portion	8,184)
Total debt (fair value)	8,195)
Financial Ratio
Debt, fair value to carrying amount ratio	0.93

Weighted average interest rate on debt: 2.50%

Interest rate	Debt amount¹	Interest rate × Debt amount
2.60%	6,933)	180)
2.10%	1,778)	37)
Total	8,711)	218)
2.50%

¹ US$ in millions

² Weighted-average interest rate = 100 × 218 ÷ 8,711 = 2.50%

Colgate-Palmolive Co., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest expense	167)	117)	183)	192)	193)
Interest capitalized	5)	3)	1)	1)	2)
Interest incurred	172)	120)	184)	193)	195)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Colgate-Palmolive Co. interest expense decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Colgate-Palmolive Co. interest capitalized increased from 2020 to 2021 and from 2021 to 2022.
Interest incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Colgate-Palmolive Co. interest incurred decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to Colgate-Palmolive Company	1,785)	2,166)	2,695)	2,367)	2,400)
Add: Net income attributable to noncontrolling interest	182)	172)	165)	160)	158)
Add: Income tax expense	693)	749)	787)	774)	906)
Add: Interest expense	167)	117)	183)	192)	193)
Earnings before interest and tax (EBIT)	2,827)	3,204)	3,830)	3,493)	3,657)

Interest incurred	172)	120)	184)	193)	195)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	16.93	27.38	20.93	18.19	18.95
Adjusted interest coverage ratio (with capitalized interest)²	16.44	26.70	20.82	18.10	18.75

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,827 ÷ 167 = 16.93

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred
= 2,827 ÷ 172 = 16.44

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Colgate-Palmolive Co. adjusted interest coverage ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Colgate-Palmolive Co. (NYSE:CL)

Analysis of Debt