Section 1: 10-Q (FY1617 Q1 JAS 10-Q) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10- Q (Mark one) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2016 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to THE PROCTER & GAMBLE COMPANY (Exact name of registrant as specified in its charter) Ohio 1 - 434 31 - 0411980 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) One Procter & Gamble Plaza, Cincinnati, Ohio 45202 (Address of principal executive offices) (Zip Code) (513) 983 - 1100 (Registrant’s telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S - T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non - accelerated filer (as defined in Rule 12b - 2 of the Exchange Act). Large accelerated filer þ Accelerated filer o Non - accelerated filer o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b - 2 of the Exchange Act).
Yes o No þ There were 2,675,992,524 shares of Common Stock outstanding as of September 30, 2016 .
PART I. FINANCIAL INFORMATION Item 1. Financial Statements THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Three Months Ended September 30 2016 2015 Amounts in millions except per share amounts NET SALES $ 16,518 $ 16,527 8,102 Cost of products sold 8,152 4,645 4,607 Selling, general and administrative expense 3,771 OPERATING INCOME 3,768 Interest expense 131 140 Interest income 35 44 63 (18 ) Other non - operating income/(loss), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 3,738 3,654 863 877 Income taxes on continuing operations 2,875 2,777 NET EARNINGS FROM CONTINUING OPERATIONS (118 ) (142 ) NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS NET EARNINGS 2,757 2,635 43 34 Less: Net earnings attributable to noncontrolling interests $ 2,714 $ 2,601 NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations $ 1.03 $ 0.98 (0.04 ) (0.05 ) Earnings/(loss) from discontinued operations 0.99 0.93 BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations $ 1.00 $ 0.96 (0.04 ) Earnings/(loss) from discontinued operations (0.05 ) 0.96 0.91 DILUTED NET EARNINGS PER COMMON SHARE $ 0.670 $ 0.663 DIVIDENDS PER COMMON SHARE Diluted weighted average common shares outstanding 2,822.9 2,867.5 (1) Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble. See accompanying Notes to Consolidated Financial Statements.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) Three Months Ended September 30 Amounts in millions 2016 2015 NET EARNINGS $ 2,757 $ 2,635 OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation (1 ) (1,023 ) Unrealized gains/(losses) on hedges (115 ) (42 ) Unrealized gains/(losses) on investment securities (13 ) 8 Unrealized gains/(losses) on defined benefit retirement plans 93 91 TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX (36 ) (966 ) TOTAL COMPREHENSIVE INCOME/(LOSS) 2,721 1,669 Less: Total comprehensive income attributable to noncontrolling interests 43 34 $ 2,678 $ 1,635 TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO PROCTER & GAMBLE See accompanying Notes to Consolidated Financial Statements.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2016 Amounts in millions June 30, 2016 Assets CURRENT ASSETS $ 7,456 Cash and cash equivalents $ 7,102 Restricted cash 1,870 — Available - for - sale investment securities 6,615 6,246 Accounts receivable 4,713 4,373 INVENTORIES 1,380 Materials and supplies 1,188 Work in process 549 563 3,070 Finished goods 2,965 Total inventories 4,999 4,716 — Deferred income taxes 1,507 Prepaid expenses and other current assets 2,447 2,653 Current assets held for sale 7,071 7,185 TOTAL CURRENT ASSETS 35,171 33,782 PROPERTY, PLANT AND EQUIPMENT, NET 19,310 19,385 GOODWILL 44,458 44,350 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 24,429 24,527 5,675 5,092 OTHER NONCURRENT ASSETS $ 129,043 $ 127,136 TOTAL ASSETS Liabilities and Shareholders' Equity CURRENT LIABILITIES $ 9,024 Accounts payable $ 9,325 Accrued and other liabilities 8,032 7,449 Current liabilities held for sale 3,130 2,343 12,215 11,653 Debt due within one year TOTAL CURRENT LIABILITIES 32,401 30,770 LONG - TERM DEBT 18,910 18,945 DEFERRED INCOME TAXES 8,515 9,113 10,266 10,325 OTHER NONCURRENT LIABILITIES 70,092 TOTAL LIABILITIES 69,153 SHAREHOLDERS ’ EQUITY 1,029 Preferred stock 1,038 Common stock – shares issued – September 2016 4,009.2 June 2016 4,009.2 4,009 4,009 Additional paid - in capital 63,553 63,714 Reserve for ESOP debt retirement (1,271 ) (1,290 ) Accumulated other comprehensive income/(loss) (15,943 ) (15,907 ) Treasury stock (81,970 ) (82,176 ) 88,855 Retained earnings 87,953 689 642 Noncontrolling interest 58,951 57,983 TOTAL SHAREHOLDERS ’ EQUITY $ 129,043 $ 127,136 TOTAL LIABILITIES AND SHAREHOLDERS ’ EQUITY See accompanying Notes to Consolidated Financial Statements.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended September 30 Amounts in millions 2016 2015 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 7,102 $ 6,836 OPERATING ACTIVITIES 2,757 Net earnings 2,635 Depreciation and amortization 728 731 44 Share - based compensation expense 67 Deferred income taxes (177 ) 89 Gain on sale of businesses (75 ) (7 ) Goodwill and intangible asset impairment charges — 402 Changes in: (424 ) Accounts receivable (368 ) Inventories (287 ) (519 ) Accounts payable, accrued and other liabilities 298 298 Other operating assets and liabilities 135 141 Other 26 69 TOTAL OPERATING ACTIVITIES 3,025 3,538 INVESTING ACTIVITIES Capital expenditures (684 ) (532 ) 183 Proceeds from asset sales 38 Acquisitions, net of cash acquired (14 ) — Purchases of short - term investments (631 ) (494 ) Proceeds from sales of short - term investments 243 418 Cash transferred to discontinued Beauty Brands business (348 ) — (874 ) Restricted cash related to Beauty Brands divestiture — Change in other investments 4 24 TOTAL INVESTING ACTIVITIES (2,121 ) (546 ) FINANCING ACTIVITIES Dividends to shareholders (1,851 ) (1,865 ) Change in short - term debt 1,519 450 Additions to long - term debt 891 — Reductions of long - term debt (1,001 ) (537 ) (1,002 ) Treasury stock purchases (502 ) Impact of stock options and other 937 483 TOTAL FINANCING ACTIVITIES (507 ) (1,971 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (43 ) (152 ) CHANGE IN CASH AND CASH EQUIVALENTS 354 869 $ 7,456 $ 7,705 CASH AND CASH EQUIVALENTS, END OF PERIOD See accompanying Notes to Consolidated Financial Statements.
Recommend
More recommend
