Name: Colgate-Palmolive Co. (NYSE:CL) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Colgate-Palmolive Co., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income including noncontrolling interests	1,967)	2,338)	2,860)	2,527)	2,558)
Cumulative translation adjustments	(146)	(193)	(24)	25)	(237)
Retirement plan and other retiree benefit adjustments	413)	134)	(40)	(100)	38)
Gains (losses) on cash flow hedges	60)	16)	(2)	(12)	10)
Other comprehensive income (loss), net of tax	327)	(43)	(66)	(87)	(189)
Comprehensive income including noncontrolling interests	2,294)	2,295)	2,794)	2,440)	2,369)
Comprehensive income attributable to noncontrolling interests	(178)	(170)	(171)	(158)	(139)
Comprehensive income attributable to Colgate-Palmolive Company	2,116)	2,125)	2,623)	2,282)	2,230)

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).

The financial performance from 2018 to 2022 demonstrates a notable divergence between net income and total comprehensive income. While net income experienced a peak in 2020 followed by a steady decline, the total comprehensive income remained relatively more stable due to the increasing positive contributions from other comprehensive income components in the latter part of the period.

Net Income Trends: Net income including noncontrolling interests reached a peak of 2,860 million US$ in 2020. However, a downward trajectory followed, with values decreasing to 2,338 million US$ in 2021 and further dropping to 1,967 million US$ in 2022, representing the lowest point in the five-year period.
Other Comprehensive Income (OCI) Volatility: OCI exhibited a consistent trend of improvement. After recording losses ranging from 189 million US$ in 2018 to 43 million US$ in 2021, the figure reversed to a gain of 327 million US$ in 2022. This shift significantly mitigated the impact of the declining net income on the total comprehensive income.
Retirement Plan and Benefit Adjustments: A significant driver of the OCI reversal was the retirement plan and other retiree benefit adjustments. This item shifted from a loss of 100 million US$ in 2019 to a substantial gain of 413 million US$ in 2022, indicating a strong positive adjustment in pension or retiree benefit obligations during the final two years of the analysis.
Currency and Hedge Impacts: Cumulative translation adjustments remained volatile, indicating ongoing exposure to foreign exchange fluctuations. These adjustments were negative in four of the five years, including a significant loss of 193 million US$ in 2021. Conversely, gains on cash flow hedges showed a positive trend toward the end of the period, increasing to 60 million US$ by 2022.
Comprehensive Income Attributable to the Company: The comprehensive income attributable to the company peaked in 2020 at 2,623 million US$. By 2022, this figure settled at 2,116 million US$. The gap between the decline in net income and the decline in comprehensive income in 2022 is attributed to the surge in retirement plan adjustments and hedge gains.

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