Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (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., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current tax provision	856)	786)	930)	755)	853)
Deferred tax provision (benefit)	(163)	(37)	(143)	19)	53)
Provision for income taxes	693)	749)	787)	774)	906)

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
Current tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Colgate-Palmolive Co. current tax provision decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Deferred tax provision (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Colgate-Palmolive Co. deferred tax provision (benefit) increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Colgate-Palmolive Co. provision for income taxes decreased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., effective income tax rate (EITR) reconciliation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Tax at United States statutory rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal benefit	0.80%	1.10%	1.00%	0.60%	1.00%
Earnings taxed at other than United States statutory rate	5.40%	2.70%	3.30%	4.60%	5.60%
Foreign tax credit carryback	0.00%	0.00%	0.00%	0.00%	-1.70%
Benefit for foreign tax matters	0.00%	0.00%	-2.00%	-0.90%	-0.40%
Non-deductible goodwill impairment charges	1.90%	2.20%	0.00%	0.00%	0.00%
Foreign-derived intangible income benefit	-2.60%	-2.20%	-1.60%	-1.30%	-1.10%
Other, net	-0.40%	-0.50%	-0.10%	-0.60%	-0.50%
Effective tax rate, before charge for U.S. tax reform	26.10%	24.30%	21.60%	23.40%	23.90%
Charge for U.S. tax reform	0.00%	0.00%	0.00%	0.00%	2.30%
Effective tax rate	26.10%	24.30%	21.60%	23.40%	26.20%

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
Effective tax rate, before charge for U.S. tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Colgate-Palmolive Co. effective tax rate, before charge for U.S. tax reform increased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Pension and other retiree benefits	214)	344)	404)	381)	354)
Tax credits and tax loss carryforwards	169)	152)	42)	93)	89)
Lease liabilities	125)	138)	144)	152)	—)
Accrued liabilities	218)	234)	250)	221)	180)
Stock-based compensation	73)	76)	73)	88)	95)
Research and Experimentation Capitalization	58)	—)	—)	—)	—)
Other	52)	69)	125)	83)	164)
Deferred tax assets	909)	1,013)	1,038)	1,018)	882)
Valuation allowance	(129)	(120)	(11)	(59)	(54)
Net deferred tax assets	780)	893)	1,027)	959)	828)
Goodwill and intangible assets	(405)	(523)	(603)	(598)	(344)
Property, plant and equipment	(375)	(301)	(281)	(303)	(311)
Right-of-use assets	(118)	(125)	(131)	(135)	—)
Deferred withholding tax	(103)	(111)	(95)	(207)	(181)
Other	(27)	(35)	(52)	(46)	(75)
Deferred tax liabilities	(1,028)	(1,095)	(1,162)	(1,289)	(911)
Net deferred income taxes	(248)	(202)	(135)	(330)	(83)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Colgate-Palmolive Co. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Colgate-Palmolive Co. net deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred income taxes	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Colgate-Palmolive Co. net deferred income taxes decreased from 2020 to 2021 and from 2021 to 2022.

Colgate-Palmolive Co., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Deferred tax assets	135)	193)	291)	177)	152)
	Deferred tax liabilities	383)	395)	426)	507)	235)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Colgate-Palmolive Co. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Colgate-Palmolive Co. deferred tax liabilities 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: Noncurrent deferred tax assets, net	135)	193)	291)	177)	152)
Total assets (adjusted)	15,596)	14,847)	15,629)	14,857)	12,009)
Adjustment to Total Liabilities
Total liabilities (as reported)	14,925)	14,069)	14,819)	14,476)	11,964)
Less: Noncurrent deferred tax liabilities, net	383)	395)	426)	507)	235)
Total liabilities (adjusted)	14,542)	13,674)	14,393)	13,969)	11,729)
Adjustment to Total Colgate-Palmolive Company Shareholders’ Equity
Total Colgate-Palmolive Company shareholders’ equity (as reported)	401)	609)	743)	117)	(102)
Less: Net deferred tax assets (liabilities)	(248)	(202)	(135)	(330)	(83)
Total Colgate-Palmolive Company shareholders’ equity (adjusted)	649)	811)	878)	447)	(19)
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: Deferred income tax expense (benefit)	(163)	(37)	(143)	19)	53)
Net income attributable to Colgate-Palmolive Company (adjusted)	1,622)	2,129)	2,552)	2,386)	2,453)

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	9.03%	12.22%	15.49%	15.20%	15.78%
Total Asset Turnover
Reported total asset turnover	1.14	1.16	1.03	1.04	1.28
Adjusted total asset turnover	1.15	1.17	1.05	1.06	1.29
Financial Leverage
Reported financial leverage	39.23	24.70	21.43	128.50	—
Adjusted financial leverage	24.03	18.31	17.80	33.24	—
Return on Equity (ROE)
Reported ROE	445.14%	355.67%	362.72%	2,023.08%	—
Adjusted ROE	249.92%	262.52%	290.66%	533.78%	—
Return on Assets (ROA)
Reported ROA	11.35%	14.40%	16.93%	15.74%	19.74%
Adjusted ROA	10.40%	14.34%	16.33%	16.06%	20.43%

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 total 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 financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Colgate-Palmolive Co. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Colgate-Palmolive Co. adjusted ROE deteriorated from 2020 to 2021 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,622)	2,129)	2,552)	2,386)	2,453)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Profitability Ratio
Adjusted net profit margin²	9.03%	12.22%	15.49%	15.20%	15.78%

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 × 1,622 ÷ 17,967 = 9.03%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	17,967)	17,421)	16,471)	15,693)	15,544)
Adjusted total assets	15,596)	14,847)	15,629)	14,857)	12,009)
Activity Ratio
Adjusted total asset turnover²	1.15	1.17	1.05	1.06	1.29

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 ÷ 15,596 = 1.15

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	15,596)	14,847)	15,629)	14,857)	12,009)
Adjusted total Colgate-Palmolive Company shareholders’ equity	649)	811)	878)	447)	(19)
Solvency Ratio
Adjusted financial leverage²	24.03	18.31	17.80	33.24	—

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
= 15,596 ÷ 649 = 24.03

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Colgate-Palmolive Co. adjusted financial leverage ratio increased 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 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,622)	2,129)	2,552)	2,386)	2,453)
Adjusted total Colgate-Palmolive Company shareholders’ equity	649)	811)	878)	447)	(19)
Profitability Ratio
Adjusted ROE²	249.92%	262.52%	290.66%	533.78%	—

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 × 1,622 ÷ 649 = 249.92%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Colgate-Palmolive Co. adjusted ROE 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 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Colgate-Palmolive Company	1,622)	2,129)	2,552)	2,386)	2,453)
Adjusted total assets	15,596)	14,847)	15,629)	14,857)	12,009)
Profitability Ratio
Adjusted ROA²	10.40%	14.34%	16.33%	16.06%	20.43%

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 × 1,622 ÷ 15,596 = 10.40%

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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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (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)