Company: CL
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000021665-25-000008
Chunk: 120

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 120
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 the reporting structure effective as of July 1, 2024.

The following table summarizes the activity for the restructuring and related implementation charges discussed above and the related accruals:

Twelve Months Ended December 31, Employee-RelatedCosts IncrementalDepreciation AssetImpairmentsOtherTotalBalance at December 31, 2022$30 $— $1 $3 $34 Charges24 — — 8 32 Cash Payments(45)— — (10)(55)Charges against assets(5)— (1)— (6)Foreign exchange6 — — — 6 Balance at December 31, 2023$10 $— $— $1 $11 Charges 49 13 — 23 85 Cash Payments (20)— — (14)(34)Charges against assets— (13)— — (13)Foreign exchange(5)— — — (5)Balance at December 31, 2024$34 $— $— $10 $44 

Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, written severance policies, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension enhancements which are reflected as Charges against assets within Employee-Related Costs in the preceding table, as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension liabilities.

Incremental Depreciation is recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments are recorded to write down inventories and assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets, as applicable.

46

(Dollars in Millions Except Per Share Amounts)

Non-GAAP Financial Measures

This Annual Report on Form 10-K discusses certain financial measures on both a GAAP and a non-GAAP basis. The Company uses the non-GAAP financial measures described below internally in its budgeting process, to evaluate segment and overall operating performance and as a factor in determining compensation. The Company believes that these non-GAAP financial measures are useful in evaluating the Company