Colgate Palmolive : Three Months Ended December 31, 2022 and 2021

Table 8

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Three Months Ended December 31, 2022 and 2021

(Dollars in Millions Except Per Share Amounts) (Unaudited)

Selling, General and Administrative Expenses		2022			2021
Selling, general and administrative expenses, GAAP	$	1,633	$	1,598
2022 Global Productivity Initiative		(1)			-
Selling, general and administrative expenses, non-GAAP	$	1,632	$	1,598

Other (Income) Expense, Net		2022			2021
Other (income) expense, net, GAAP	$	18	$	25
2022 Global Productivity Initiative		(14)			-
Acquisition-related costs		(3)			-
Other (income) expense, net, non-GAAP	$	1	$	25

Operating Profit		2022			2021		% Change
Operating profit, GAAP	$	202	$	365	(45)%
Goodwill and intangible assets impairment charges		721			571
2022 Global Productivity Initiative		15			-
Acquisition-related costs		3			-
Operating profit, non-GAAP	$	941	$	936	1 %
							Basis Point
Operating Profit Margin		2022			2021		Change
Operating profit margin, GAAP		4.4 %			8.3 %	(390)
Goodwill and intangible assets impairment charges		15.5 %			13 %
2022 Global Productivity Initiative		0.3 %			- %
Acquisition-related costs		0.1 %			- %
Operating profit margin, non-GAAP		20.3 %			21.3 %	(100)
Non-service related post retirement cost
	2022			2021
Non-service related post retirement cost, GAAP	$	15	$	18
2022 Global Productivity Initiative		(2)			-
Non-service post retirement cost, non-GAAP	$	13	$	18

Table 8

Continued

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Three Months Ended December 31, 2022 vs. 2021

(Dollars in Millions Except Per Share Amounts) (Unaudited)

								2022
								Net Income			Net Income		Effective			Diluted
		Income Before			Provision For			Including		Attributable To
					Noncontrolling		Colgate-Palmolive		Income			Earnings
		Income Taxes		Income Taxes(1)			Interests			Company		Tax Rate(2)			Per Share
As Reported GAAP	$	132	$	89	$	43	$	5	67.4 %	$	0.01
Goodwill and intangible assets
impairment charges		721			101			620			620	(45.1)%			0.74
2022 Global Productivity		17			3			14			14	(0.1)%			0.02
Initiative
Acquisition-related costs		3			1			2			2		- %			-
Non-GAAP	$	873		$	194		$	679		$	641		22.2 %		$	0.77
								2021
								Net Income			Net Income		Effective			Diluted
		Income Before			Provision For			Including		Attributable To
					Noncontrolling		Colgate-Palmolive		Income			Earnings
		Income Taxes		Income Taxes(1)			Interests			Company		Tax Rate(2)			Per Share
As Reported GAAP	$	324	$	136	$	188	$	148	42.0 %	$	0.18
Goodwill and intangible assets
impairment charges		571			53			518			518		(20.9)%			0.61
Non-GAAP	$	895	$	189	$	706	$	666	21.1 %	$	0.79

The impact of non-GAAP adjustments may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.

Notes:

1. The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non- GAAP adjustment.
2. The impact of non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.