10-K 0000021665-26-000006 (2026-02-23) vs 10-K 0000021665-25-000008 (2025-02-13)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 8,519 |
24.4% |
| MD&A | Item 7 | 13,247 |
31.3% |
| Legal Proceedings | Item 3, via Note 13 – Commitments and Contingencies | 1,734 |
35.2% |
| Accounting Policies | 10-K text, Note 2 – Summary of Significant Accounting Policies | 2,078 |
17.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 369 words changed in this paragraph; it is 60% similar to last year's version.
Climate change resulting in the increased frequency and severity of natural disasters and other extreme weather conditions may adversely impact our business, results of operations, cash flows and financial condition. Specifically, the predicted physical effects of climate change may exacerbate challenges regarding the availability and quality of water and the cost, quality and availability of raw and packaging materials, pose physical risks to our facilities and those of our key suppliers, disrupt our global supply chain or chain, impact demand for our products. products or exacerbate challenges regarding the cost, quality and availability of raw and packaging materials and the availability and quality of water. In addition, the increased concern over climate change has resulted and is likely to continue to result in transition risks, including additional legal and regulatory requirements intended to, among other things, reduce or mitigate the effects of climate change and have related and may relate to, among other things, greenhouse gas emissions (e.g., carbon pricing), alternative energy policy and additional disclosure obligations, such as the Corporate Sustainability Reporting Directive, obligations and extended producer responsibility obligations that relate to our product packaging. Such risks, including additional regulations legal and regulatory requirements, may adversely affect our business, results of operations, cash flows and financial condition by increasing our compliance and manufacturing costs and/or negatively impacting our reputation if we are unable to, or are perceived (whether or not valid) not to, satisfy such requirements or expectations. Achieving our sustainability and social impact targets will require significant efforts from us and our stakeholders, such as our suppliers and other third parties. It will also require capital investment, additional expense (e.g., renewable energy costs) and the development of technology that may not currently exist. In addition, certain of our stakeholders have expressed negative sentiment regarding corporate sustainability initiatives. Our practices and efforts in this area may not align with the expectations of all stakeholders, which could negatively affect our relationships with certain stakeholders. Furthermore, our activities in this area could expose us to increased regulatory or legal scrutiny, potential product boycotts or other actions that may harm our reputation or adversely affect our reputation, business, results of operations, cash flows and financial condition. There is also increased focus by certain stakeholders on these and other sustainability matters, including responsible sourcing, deforestation, animal welfare, labor, employment and human rights, ingredients of interest, the use of plastic, energy and water, the recyclability or recoverability of packaging, including single-use and other plastic packaging. From certain stakeholders, there is also a growing demand for natural or organic products and ingredient transparency, such as sources of palm oil and palm kernel oil, and an increased focus on reducing our impact on nature. Failure to achieve our sustainability and social impact targets (including our net zero carbon target) or the perception (whether or not valid) that we have failed to act responsibly with respect to such matters or to effectively respond to new or additional legal or regulatory requirements regarding climate change or other sustainability matters, matters could result in adverse publicity and increased litigation risk and adversely affect our business and reputation. There is also increased focus, including by governmental and non-governmental organizations, investors, customers, consumers, regulators, our employees and other stakeholders on these and other sustainability and social impact matters, including responsible sourcing, deforestation, animal welfare, labor, employment and human rights, the use of plastic, energy and water, the recyclability or recoverability of packaging, including single-use and other plastic packaging. From many of these stakeholders, there is also a growing demand for natural or organic products and ingredient transparency, such as sources of palm oil and palm kernel oil, and an increased focus on reducing our impact on nature. Our reputation could be damaged if we do not (or are perceived not to) act responsibly with respect to sustainability matters, which could adversely affect our reputation, business, results of operations, cash flows and financial condition.
Source: Item 1A, 10-K 0000021665-26-000006 vs Item 1A, 10-K 0000021665-25-000008
MD&A 216 words changed in this paragraph; it is 36% similar to last year's version.
Recent Major developments in trade relations and relations, including the imposition of new and/or additional or increased tariffs by the United States and and/or other countries, such as China, including those threatened or imposed following the United States’ February 2025 executive orders imposing orders, retaliatory tariffs on imports from Canada, Mexico imposed by the United States’ trading partners or through the renegotiation of trade agreements, such as the United States-Mexico-Canada Agreement, have contributed to and China, may are expected to continue to contribute to inflationary pressures and, as a result, pressures, geopolitical tensions, macroeconomic and market volatility. These developments have also impacted and may continue to impact consumer demand for sentiment, consumption, discretionary spending and/or purchasing patterns. In addition, they have impacted and may continue to impact the cost and/or availability of raw and packaging materials and the price of our products. We are following the dynamic situation closely and evaluating the impact of such tariffs and any retaliatory actions taken by other countries on our business, results of operations, cash flows and financial condition. While we have made and will continue to make efforts to mitigate the impact of these and any additional tariffs imposed by the United States and/or other countries, countries or shifts in trade agreements, they or our mitigating actions could impact the cost and/or price have a material effect on our business, results of our products, the cost operations, cash flows and availability of raw and packaging materials and commodities and/or consumer demand for our products due to, among other things, the impact of such tariffs on the global economy, inflationary pressures or geopolitical relations. financial condition. For additional information, see “Outlook” below.
Source: Item 7, 10-K 0000021665-26-000006 vs Item 7, 10-K 0000021665-25-000008
Legal Proceedings 104 words changed in this paragraph; it is 61% similar to last year's version.
As of December 31, 2024, 2025, there were 309 454 individual cases pending against the Company in state and federal courts throughout the United States, as compared to 279 308 cases as of December 31, 2023. 2024. During the year ended December 31, 2024, 142 2025, 253 new cases were filed and 111 107 cases were resolved by voluntary dismissal, settlement or dismissal by the court, and one case was removed from the case count when it was established that the claim does not relate to talcum powder. court. The value of the settlements in the periods presented was not material, either individually or in the aggregate, to such periods’ period's results of operations. During the three months ended March 31, 2024, one case resulted in a jury verdict in favor of the Company after a trial. Subsequently, the trial court granted plaintiffs’ motion for a new trial in that case. However, during the three months ended September 30, 2024, an appellate court granted the Company’s request to reinstate the jury’s verdict in favor of the Company. Plaintiffs are challenging that ruling and separately are appealing other issues related to the verdict.
Source: Item 3, via Note 13 – Commitments and Contingencies, 10-K 0000021665-26-000006 vs Item 3, via Note 12 – Commitments and Contingencies, 10-K 0000021665-25-000008
Accounting Policies 84 words changed in this paragraph; it is 50% similar to last year's version.
In November 2024, September 2025, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2024-04, “Debt 2025-06, “Intangibles - Debt with Conversion Goodwill and Other Options - Internal-Use Software (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments.” 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” This ASU clarifies modernizes the requirements capitalization criteria for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions. internal-use software by eliminating references to project stages and clarifying the threshold applied to begin capitalizing costs. This guidance is effective for the Company for fiscal years beginning after December 15, 2025 and 2027. The Company is not expected to have an currently assessing the impact on the Company’s Consolidated Financial Statements. of this new guidance.
Source: 10-K text, Note 2 – Summary of Significant Accounting Policies, 10-K 0000021665-26-000006 vs 10-K text, Note 2 – Summary of Significant Accounting Policies, 10-K 0000021665-25-000008
Every change, by type
Sentences and paragraphs of CL's Risk Factors and MD&A, 10-K 2026-02-23 against 10-K 2025-02-13.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Negative publicity, posts or comments on digital and social media (including those that are AI-generated), whether true or untrue, could damage our brands and our reputation. The success of our brands could also suffer if our marketing initiatives do not have the desired impact on a brand’s image or its ability to attract consumers.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedRisk Factors
•raw and packaging material and product availability and/or quality or safety issues;
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedRisk Factors
Raw and packaging material commodities, such as resins, essential oils, tropical oils, pulp, tallow, corn, poultry and
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedRisk Factors
We may not realize the benefits that we expect from our Strategic Growth and Productivity Program.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedRisk Factors
Our business is subject to legal and regulatory risks in the United States and abroad.
Read it in 10-K 2026-02-23 at sec.gov ↗
RemovedRisk Factors
We face risks resulting from political and macroeconomic instability and geopolitical events and tensions, such as the war in Ukraine, the conflict in the Middle East and tensions between China and Taiwan. These geopolitical conflicts
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
Further, the retail landscape in many of our markets continues to evolve as a result of the substantial growth of eCommerce, changing consumer behaviors and preferences (as consumers increasingly shop online, including to compare prices and product availability) and the increased presence of alternative retail channels, such as subscription services and direct-to-customer businesses. The substantial growth in eCommerce and the emergence of alternative retail channels have created and may continue to create pricing pressures and/or adversely affect our relationships with our key retailers.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
In addition, consumer preferences continue to evolve due to a number of factors, including evolving consumer concerns or perceptions (whether or not valid) regarding sustainability and social impact practices, including the sourcing and sustainability of raw and packaging materials, a demand for natural or organic products and ingredients and ingredient transparency, consumer concerns or perceptions regarding the effects of ingredients, consumer sentiment toward non-local products or sources and perceptions of and increased focus on labor and human rights and environmental impacts (including responsible sourcing, deforestation, packaging, plastic, energy and water use and waste management).
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
We face various risks related to pandemics, epidemics or other widespread public health concerns, which may have a material adverse effect on our business, results of operations, cash flows and financial condition.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
We face various risks related to pandemics, epidemics or other widespread public health concerns. A pandemic, epidemic or other widespread health concern could have, and COVID-19 has had a variety of impacts on our business, results of operations, cash flows and financial condition, including:
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•our ability to continue to maintain and support the health, safety and well-being of our employees, including key employees;
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•disruptions to our global supply chain, including transportation and logistics challenges;
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•significant volatility in demand for certain of our products, which may require us to increase our production capacity or acquire additional capacity at an additional cost and expense;
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•failure of third parties on which we rely to meet their obligations to us, or significant disruptions in their ability to do so, which may be caused by their own financial or operational difficulties;
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•significant changes in the economic and political conditions of the markets in which we operate;
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•disruptions and volatility in the global capital markets, including rising interest rates, which may increase the cost of capital and adversely impact our access to capital; and/or
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedRisk Factors
•volatility in foreign exchange rates and increases in the cost and availability of raw and packaging materials and transportation and logistics costs.
Read it in 10-K 2025-02-13 at sec.gov ↗
RewordedRisk Factors
Major developments in trade relations, including the imposition of new or increased tariffs by the United States and/or other countries, such as China, Mexico and Canada, including those threatened or imposed following the United States’ February 2025 executive orders, retaliatory tariffs imposed by the United States’ trading partners or through the renegotiation of trade agreements, have contributed to and any nationalist trends in specific countries, have altered and could are expected to continue to alter the trade environment contribute to inflationary pressures, geopolitical tensions, macroeconomic and market volatility and consumer purchasing behavior which, in turn, could have a material effect on our business, results of operations, cash flows and financial condition. uncertainty.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Increases in the costs of and/or a reduction in the availability of commodities, energy (including fuel prices), logistics (including trucks and containers) or other necessary services, including as a result of macroeconomic and geopolitical conflicts, tensions, conflicts and uncertainty, such as the war in Ukraine and the conflict in Ukraine, the Middle East, East and Venezuela, developments in trade relations (including new or increased tariffs, new or revised trade agreements, sanctions, export controls or import restrictions), widespread health emergencies, such as pandemics or epidemics, changes in supply and demand and/or the impact of climatic events have affected and and, in some instances, are likely to continue to adversely affect our profit margins.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Since litigation is inherently uncertain, there is no guarantee While we and our legal counsel believe that we will be successful in defending ourselves have strong legal grounds to contest any claims brought against such claims or proceedings, or that us and we are challenging them vigorously, our assessment of the materiality of these matters, including any reserves taken in connection therewith, will with them, may not be consistent with the ultimate outcome of such matters.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
If we are not successful in continuing adapting or effectively reacting to adapt or to effectively react to the rapidly changing retail landscape, changes in consumer behaviors, behavior, preferences or purchasing patterns and/or changing market dynamics, including customer policies or the proliferation of eCommerce and alternative retail channels, executing our 2030 business strategy which is, in part, focused on omni-channel demand generation, our business, results of operations, cash flows and financial condition could be adversely affected.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Specifically, the predicted physical effects of climate change may exacerbate challenges regarding the availability and quality of water and the cost, quality and availability of raw and packaging materials, pose physical risks to our facilities and those of our key suppliers, disrupt our global supply chain or chain, impact demand for our products. products or exacerbate challenges regarding the cost, quality and availability of raw and packaging materials and the availability and quality of water.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Unfavorable global economic macroeconomic conditions, such as a recession, an economic slowdown, inflation, higher high interest rates and/or reduced category growth rates, including as a result of the war geopolitical events and tensions, wars and military conflicts, such as in Ukraine and the conflict in Ukraine, the Middle East, East and Venezuela, and developments in trade relations (including new or increased tariffs, sanctions, export controls, import restrictions or other trade barriers), have negatively impacted and/or could negatively impact our business and result in declining revenues, profitability and/or cash flows.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Regardless of their merit, these claims can require significant time and expense to investigate and defend. defend, and since litigation, particularly product liability and consumer class action litigation in the United States, is inherently uncertain, there is no guarantee that we will be successful in these matters.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
(including, without limitation, We are also subject to laws, regulations or other government directives imposed by the United States (including those imposed by OFAC) and/or by other jurisdictions that impose tariffs, sanctions, import restrictions, export controls or other trade barriers, may prohibit us or certain of our affiliates from doing business in certain countries, or restrict the kind of business that may be conducted.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
We continue to embed new ways of working to, among other things, instill to adapt to a growth mindset to rapidly changing world, drive innovation. innovation and operational efficiency and adopt and leverage technologies such as AI.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
In addition, a number of these risks have adversely impacted and may continue to adversely impact consumer confidence sentiment (including as it relates to the perception of U.S. brands internationally) and consumption, which could has reduced and may continue to reduce sales volumes of our products or result in a shift in our product mix from higher margin to lower margin product offerings.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
Increasing dependence on key retailers in developed markets, changes in the policies of our retail trade customers, the emergence of alternative retail channels and the The rapidly changing retail landscape and changing consumer preferences may adversely affect our business.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedRisk Factors
We use third parties including, but not limited to, parties, including suppliers, contract manufacturers, distributors, commercial banks manufacturing logistics providers, financial service providers and other external business partners, cloud-based software providers, to support many aspects of our business including those that provide support across much of the lifespan of our products from the purchasing of ingredients up to and including the sale of our products to consumers.
Read it in 10-K 2026-02-23 at sec.gov ↗
Quiet changesRisk Factors
If To the extent any of these risks actually occur, our business, results of operations, cash flows and financial condition could be materially and adversely impacted, which might cause the value of our securities to decline.
Read it in 10-K 2026-02-23 at sec.gov ↗
Quiet changesRisk Factors
From many of these certain stakeholders, there is also a growing demand for natural or organic products and ingredient transparency, such as sources of palm oil and palm kernel oil, and an increased focus on reducing our impact on nature.
Read it in 10-K 2026-02-23 at sec.gov ↗
Quiet changesRisk Factors
However, as As these and other tax laws and related regulations change, our business, results of operations, cash flows and financial condition could be materially impacted.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
We have concluded our 2025 strategic plan, delivering improved organic sales growth, consistent dollar-based earnings per share growth and increased capabilities in areas such as science-led core and premium innovation, digital, data, analytics and artificial intelligence (“AI”), despite macroeconomic and geopolitical challenges. Our 2030 strategy is intended to accelerate growth going forward through several key initiatives. These initiatives include leveraging the global reach and penetration of our brands; building the incremental benefit of superior, science-based innovation supported by an agile and resilient supply chain; harnessing the power of best-in-class omni-channel demand generation; leading in capabilities such as data, analytics and AI; and evolving our high-impact, inclusive culture.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
Additionally, on July 31, 2025, our Board of Directors (the “Board”) approved a new three-year productivity program to drive future growth and support our 2030 strategy (the “Strategic Growth and Productivity Program”). The program includes initiatives to better align our organizational structure to support our strategic initiatives, optimize our global supply chain to drive agility and efficiencies and simplify and streamline our organizational structure to reduce overhead costs. The Strategic Growth and Productivity Program is estimated to result in cumulative pre-tax charges, once all initiatives are approved and implemented, of between $200 and $300. It is estimated that substantially all charges will be incurred by December 31, 2028. For more information regarding the Strategic Growth and Productivity Program, see “Restructuring and Related Implementation Charges” below.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
We believe strong free cash flow performance is a key priority to drive future growth and superior total shareholder return. We achieve this through increasing net income, optimizing working capital and through high return capital expenditures focused on growth and profitability.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
The efficient use of our balance sheet, including prudent management of our capital structure, is also critical. We continue to prioritize our investments in high growth and high margin segments within our Oral Care, Personal Care and Pet Nutrition businesses and to make careful decisions about our brand portfolio. Finally, we drive additional value to shareholders by returning cash through dividends and ongoing share repurchases.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
In the fourth quarter of 2025, we recorded a non-cash charge of $794 aftertax ($919 pretax) to adjust the carrying values of goodwill and intangible assets related to the skin health business. Given lower than expected category growth rates and weaker than expected performance, particularly in China, we have lowered our outlook for the skin health business, primarily Filorga. See Note 5, Goodwill and Other Intangible Assets to the Consolidated Financial Statements for further information.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
On April 30, 2025, we acquired Care TopCo Pty Ltd, the owner of the Prime100 pet food business, for cash consideration of AU $471 (approximately $301). This acquisition provides our Hill’s Pet Nutrition segment with an entry into the fast-growing fresh pet food category in Australia. Refer to Note 3, Acquisitions to the Consolidated Financial Statements for additional information.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
Looking forward, we expect global macroeconomic, geopolitical and market conditions to remain challenging, including as a result of inflation, high interest rates, foreign currency volatility and developments in trade relations.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
Given that approximately two-thirds of our Net sales originate in markets outside the United States, we have experienced and will likely continue to experience volatile foreign currency fluctuations. This is particularly acute in hyper-inflationary economies, including Argentina, Nigeria and Türkiye.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
We continue to experience higher raw and packaging material costs, including the impact of transactional foreign exchange. We have taken, and will continue to take, measures to mitigate the effect of these conditions, such as our funding-the-growth and revenue growth management initiatives and the Strategic Growth and Productivity Program.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
However, in the current environment it may become increasingly difficult to implement certain of these mitigation strategies. Additionally, inflation has impacted the broader economy with consumers in many geographies around the world facing widespread rising prices as well as high interest rates. Should these conditions persist, they could adversely affect our future results.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
We face vigorous competition worldwide, including from strong local competitors (including private label competitors), from other companies, some of which have greater resources than we do. In addition, the substantial growth of eCommerce and the emergence and adoption of social commerce and AI have encouraged the entry of new competitors, some of which sell products direct-to-consumer. We face competition in several aspects of our business, including pricing, promotional activities, new product introductions and expansion into new geographies and channels.
Read it in 10-K 2026-02-23 at sec.gov ↗
AddedMD&A
Our products are sold in a highly competitive omni-channel marketplace that is increasingly defined by the integration of traditional and digital retail operations and evolving consumer purchasing behavior and preferences, as consumers continue to shop online and increasingly through social commerce and with the assistance of AI. The increased presence of alternative retail channels, such as subscription services and direct-to-customer businesses, has also intensified competition for consumer attention. While we continue to sell our products to a variety of customers, including large-format retailers, discounters and eCommerce retailers, our growth is increasingly dependent on our ability to generate consumer demand across key touchpoints in the omni-channel ecosystem whether through traditional retail, eCommerce, social media or digital. We are also increasingly dependent upon certain key retailers, some of which exercise greater bargaining strength than we do, including the exclusive access to valuable first-party consumer data and analytics.
Read it in 10-K 2026-02-23 at sec.gov ↗
RemovedMD&A
In connection with management changes, we realigned the reporting structure of our skin health business effective July 1, 2024. Accordingly, commencing with the quarter ended September 30, 2024, the results of the skin health business previously reported within the Europe reportable operating segment are reported with our other skin health businesses in the North America reportable operating segment, with no impact on the Company's consolidated results of operations or financial position. The Company has recast its historical geographic segment information to conform to the new reporting structure.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
The conflict in the Middle East has not had a material impact on our Consolidated Financial Statements. Uncertainties and risks remain as to the duration of the conflict and its impact on geopolitical relations and stability in North Africa, the wider Middle East and nearby regions. The conflict has impacted and may continue to impact, among other things, supply chain and logistics, the availability and price of raw and packaging materials and commodities such as oil, consumer sentiment and consumption and category growth rates in the region.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
To achieve our business and financial objectives, we are focused on delivering consistent compounded earnings per share growth through driving organic sales growth, operational efficiencies and leveraging the strength of our balance sheet. We believe increased household penetration and improved brand health are the keys to consistent organic sales growth and aim to achieve these through science-led, core and premium innovation, pursuing higher-growth adjacent categories and segments and expanding in faster-growing channels and markets. We aim to deliver margin expansion and cash flow growth through operating leverage and efficiency. We continue to prioritize our investments in high growth segments within our Oral Care, Personal Care and Pet Nutrition businesses. We also seek to lead in the development of human capital and to maximize the impact of our Sustainability & Social Impact Strategy. We are building and scaling our capabilities in areas such as innovation, digital, data, analytics and artificial intelligence, enabling us to be more responsive in today’s rapidly changing world. We continue to invest behind our brands, including through advertising, and to develop initiatives to build strong relationships with consumers, retailers and dental, veterinary and skin health professionals. We continue to believe that growth opportunities are greater in those areas of the world in which economic development and rising consumer incomes expand the size and number of markets for our products.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
During the quarter ended June 30, 2023, we reassessed with our legal and tax advisers certain tax deductions taken in prior years by one of our subsidiaries and concluded that it was more likely than not that the deductions would not be sustained by the courts in that jurisdiction. The value of the tax deductions was not material to us in any year in which they were taken. The cumulative effect of the change in tax position of $148 was reflected as a discrete item in the quarter ended June 30, 2023 income tax expense, partially offset by the reversal of certain prior years’ withholding tax reserves of $22 that were no longer required (hereinafter referred to as the “foreign tax matter”). The tax liability was paid in the quarter ended September 30, 2023. See Note 10, Income Taxes, to the Consolidated Financial Statements for additional information.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
During the quarter ended March 31, 2023, we recorded a charge of $267 as a result of a decision of the United States Court of Appeals for the Second Circuit (the “Second Circuit”) affirming a grant of summary judgment to the plaintiffs in a
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
During the quarter ended March 31, 2023, we announced a voluntary recall of select Fabuloso multi-purpose cleaner products sold in the United States and Canada. The costs associated with the voluntary recall had a $25 impact on our Operating profit in the quarter ended March 31, 2023.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
In the years ended December 31, 2024 and 2023, we incurred pretax costs of $85 (aftertax costs of $73) and $32 (aftertax costs of $25), respectively, resulting from the 2022 Global Productivity Initiative.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
Looking forward, we expect global macroeconomic, political and market conditions to remain challenging, including as a result of inflation, high interest rates, foreign currency volatility and developments in trade relations following the imposition of new and/or additional tariffs by the United States and other countries. We have taken and are taking additional pricing to try to offset the increases in raw and packaging material costs we have seen in recent years. This has negatively impacted consumer demand for our products. Additionally, inflation has impacted the broader economy with consumers around the world facing widespread rising prices as well as high interest rates resulting from measures to address inflation.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
Given that approximately two-thirds of our Net sales originate in markets outside the U.S., we have experienced and will likely continue to experience volatile foreign currency fluctuations, particularly in Argentina and Türkiye, which are considered hyper-inflationary economies. Effective January 1, 2025, we designated Nigeria as a hyper-inflationary economy. Consequently, the functional currency for our Nigerian subsidiary will be the U.S. dollar and the impact of all future Nigerian currency fluctuations will be recorded in income. However, this designation is not expected to have a material impact on the Company's Consolidated Financial Statements. As discussed above, we continue to experience higher raw and packaging material costs, including the impact of transactional foreign exchange. While we have taken, and will continue to take, measures to mitigate the effect of these conditions, such as our funding-the-growth and revenue growth management initiatives, in the current environment it may become increasingly difficult to implement certain of these mitigation strategies. Should these conditions persist, they could adversely affect our future results.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
While the global marketplace in which we operate has always been highly competitive, we continue to experience heightened competitive activity in certain markets from strong local competitors (including private label competitors), from other large multinational companies, some of which have greater resources than we do, and from new entrants into the market in many of our categories. Such activities have included more aggressive product claims and marketing challenges, as well as increased promotional spending and geographic expansion.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
We have been negatively affected by changes in the policies and practices of our trade customers in key markets, such as inventory destocking, fulfillment requirements, technology-aided category pricing pressures, limitations on access to shelf space, delisting of our products and sustainability, supply chain and packaging standards or initiatives. In addition, the retail landscape in many of our markets continues to evolve as a result of the continued growth of eCommerce, changing consumer preferences (as consumers increasingly shop online, including to compare prices and product availability) and the increased presence of alternative retail channels, such as subscription services and direct-to-consumer businesses. We are building and scaling our capabilities in areas such as innovation, digital, data, analytics and artificial intelligence and investing behind higher growth businesses. The substantial growth in eCommerce and the emergence of alternative retail channels have created and may continue to create pricing pressures and/or adversely affect our relationships with our key retailers.
Read it in 10-K 2025-02-13 at sec.gov ↗
RemovedMD&A
We believe that we are well prepared to meet the challenges ahead due to our strong financial condition, experience operating in challenging environments, resilient global supply chain, dedicated and diverse global team and focused business strategy. Our strategy is based on delivering consistent compounded earnings per share growth through driving organic sales growth, operational efficiencies and leveraging the strength of our balance sheet. We believe increased household penetration and improved brand health are the keys to consistent organic sales growth and aim to achieve these through science-led, core and premium innovation, pursuing higher-growth adjacent categories and segments and expanding in faster-growing channels and markets. We aim to deliver margin expansion and cash flow growth through operating leverage and efficiency. We also seek to lead in the development of human capital and to maximize our Sustainability & Social Impact Strategy. Our commitment to these priorities, the strength of our brands, the breadth of our global footprint and a commitment to profitability and driving efficiency in cash generation should position us well to manage through the challenges we face and increase shareholder value over time.
Read it in 10-K 2025-02-13 at sec.gov ↗
RewordedMD&A
Actual events or results may differ materially because of factors that affect international businesses and global economic macroeconomic and geopolitical conditions, as well as matters specific to the Company and the markets it serves, including the uncertain macroeconomic and political environment in different countries, including as a result of inflation and higher high interest rates, rates and its their effect on consumer confidence sentiment and spending, foreign currency rate fluctuations, exchange controls, import restrictions, tariffs, sanctions, price or profit controls, labor relations, changes in foreign or domestic laws or regulations or their interpretation, political and fiscal developments, including changes developments in trade, trade relations and the negotiation of trade agreements, tax and immigration policies, increased significant competition and evolving a highly competitive practices, omni-channel marketplace, including as a result of the ability to operate growth of eCommerce and respond effectively during the emergence of AI, a pandemic, epidemic or widespread public health concern, rapidly changing retail landscape and changes in the policies of retail trade customers, the ability to manage disruptions in our global supply chain and/or key office facilities, the ability to manage the availability and cost of raw and packaging materials and logistics costs, the ability to maintain or increase selling prices as needed, changes in the policies of retail trade customers, the emergence of alternative retail channels, the growth of eCommerce and the rapidly changing retail landscape, the ability to develop innovative new products and successfully adopt leverage AI and other new technologies (such as artificial intelligence), and emerging technologies, the ability to continue lowering costs and operate in an agile manner, the ability to successfully implement and realize the benefits of the Strategic Growth and Productivity Program, the ability to maintain the security of our information and operational technology systems from a cybersecurity incident or data breach, incidents, the ability to address the effects of climate change and implement our sustainability strategy and achieve our sustainability and social impact goals, targets, the ability to complete acquisitions and divestitures as planned, the ability to planned and successfully integrate acquired businesses, the ability to attract and retain key employees, the uncertainty of the outcome of legal proceedings, whether or not the Company believes they have merit, and the ability to address uncertain or unfavorable global economic macroeconomic conditions, including inflation, disruptions in the credit markets and tax matters.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
The following tables provide a quantitative reconciliation of Net sales growth to organic sales growth for the years ended December 31, 2025 and 2024 and 2023 versus the prior year:Year ended December 31, 2024 2025 Net Sales Growth Foreign Acquisitions and Divestments Organic Impact (GAAP) Exchange Sales Growth Impact (Non-GAAP) Oral, Personal and Home Care North America(1) 0.5% America (1.6)% (0.1)% —% 0.7% (1.6)% Latin America 3.1% (13.7)% (0.1)% (4.0)% —% 16.8% Europe(1) 7.7% 1.1% 3.9% Europe 6.9% 4.4% —% 6.7% 2.6% Asia Pacific 2.7% (1.3)% (1.5)% (0.5)% —% 4.0% (1.0)% Africa/Eurasia 1.2% (12.1)% 7.0% 0.5% —% 13.3% 6.5% Total Oral, Personal and Home Care 3.0% (5.2)% 1.0% (0.5)% —% 8.1% 1.5% Pet Nutrition 4.5% (0.4)% —% 4.9% 2.9% 0.5% 1.1% 1.2% Total Company 3.3% (4.1)% —% 7.4% 1.4% (0.3)% 0.3% 1.4%
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Year ended December 31, 2023 2024 Net Sales Growth Foreign Acquisitions and Divestments Organic (GAAP) Exchange Impact Sales Growth Impact (Non-GAAP) Oral, Personal and Home Care North America(1) 2.2% (0.2)% America 0.5% (0.1)% —% 2.4% 0.7% Latin America 16.5% 3.1% (13.7)% —% 16.8% Europe 7.7% 1.1% —% 15.4% Europe(1) 8.9% 2.6% —% 6.3% 6.7% Asia Pacific (1.6)% (3.8)% 2.7% (1.3)% —% 2.3% 4.0% Africa/Eurasia 0.1% (17.2)% 1.2% (12.1)% —% 17.3% 13.3% Total Oral, Personal and Home Care 6.4% (1.4)% 3.0% (5.2)% —% 7.8% 8.1% Pet Nutrition 15.5% (0.5)% 5.4% 10.6% 4.5% (0.4)% —% 4.9% Total Company 8.3% (1.2)% 1.1% 8.4% 3.3% (4.1)% —% 7.4%
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
As reflected in the table below, the non-GAAP effective income tax rate was 23.1% in 2025 and 22.7% in 2024 and 23.6% in 2023. 2024 2024. 2025 Income Before Income Taxes Provision For Income Taxes(1) Effective Income Tax Rate(2) As Reported GAAP $ 3,956 $907 22.9% 2022 Global Productivity Initiative 85 3,059 $ 798 26.1% Goodwill and intangible assets impairment charges 919 125 (2.9)% ERISA litigation matter 65 12 (0.2)% (0.1)% Restructuring programs 13 2 —% Acquisition-related costs 9 2 —% Non-GAAP $ 4,041 $919 22.7% 4,065 $ 940 23.1%
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Excluding these charges in both periods, worldwide charges, Worldwide Gross profit increased to $12,251 in 2025 compared to $12,181 in 2024 compared to $11,327 in 2023, 2024, reflecting an increase of $482 resulting from higher Gross profit margin and an increase of $372 $170 resulting from higher Net sales. sales, partially offset by lower Gross profit margin of $100.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
This increase decrease in Gross profit margin was due to significantly higher raw and packaging material costs (420 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (280 (260 bps), higher pricing (170 (80 bps) and favorable mix (20 bps), partially offset by higher raw and packaging material costs (230 bps), which included foreign exchange transaction costs. (30 bps).
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Twelve Months Ended months ended December 31, Total Program Charges 2024 2023 2025 North America(1) 3% 15% 9% America 30% Latin America —% —% 9% Europe(1) 89% 19% 44% Europe 4% Asia Pacific —% 20% 7% Africa/Eurasia —% 5% 6% Hill's Pet Nutrition 6% 23% 11% 1% Corporate 2% 18% 14% 65% Total 100% 100% 100%
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Long-term debt, including the current portion, decreased increased to $7,986 as of December 31, 2025, as compared to $7,941 as of December 31, 2024, as compared and total debt increased to $8,239 $7,988 as of December 31, 2023, and total debt decreased 2025 as compared to $7,949 as of December 31, 2024 as compared to $8,549 as of December 31, 2023. 2024.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Net sales for in the Hill’s Pet Nutrition increased 4.5% segment were $4,613 in 2024 to $4,483, 2025, up 2.9% from 2024, driven by volume growth of 0.8% and net selling price increases of 4.1%, 3.0% and positive foreign exchange of 0.5%, partially offset by negative foreign exchange volume declines of 0.4%. 0.6%.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, category growth rates, the impact of foreign exchange, the impact of additional developments in global trade relations and tariffs, the impact of geopolitical conflicts events and tensions, wars and military conflicts, such as the war in Ukraine, the conflict in the Middle East and tensions between China Venezuela, cost-reduction plans (including the Strategic Growth and Taiwan, cost-reduction plans, Productivity Program), tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters.
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Other (income) expense, net in 2023 2024 included product recall costs and charges resulting from the 2022 Global Productivity Initiative.2024 2023 Initiative.2025 2024 Other (income) expense, net, GAAP $ 123 $ 164 $ 191 2022 Global Productivity Initiative Acquisition-related costs (9) — Restructuring programs (7) (59) (24) Product recall costs — (25) Other (income) expense, net, non-GAAP $ 107 $ 105 $ 142
Read it in 10-K 2026-02-23 at sec.gov ↗
RewordedMD&A
Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Earnings per share on a diluted basis are discussed in this Annual Report on Form 10-K both on a GAAP basis and excluding, as applicable, goodwill and intangible assets impairment charges, charges resulting from the ERISA litigation matter, the foreign tax matter Restructuring programs (the Strategic Growth and Productivity Program in 2025 and the 2022 Global Productivity Initiative in 2024) and product recall the ERISA litigation matter and acquisition-related costs.
Read it in 10-K 2026-02-23 at sec.gov ↗
Quiet changesMD&A
However, the The Company will continue to evaluate any additional guidance and clarification that becomes available.
Read it in 10-K 2026-02-23 at sec.gov ↗
Quiet changesMD&A
In determining the fair value of the Company’s reporting units, fair value is also generally determined using the market approach, which is generally derived from metrics of comparable publicly traded companies.
Read it in 10-K 2026-02-23 at sec.gov ↗
