Colgate Palmolive : Nine Months Ended September 30, 2022 and 2021

Table 9

Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Nine Months Ended September 30, 2022 and 2021
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Selling, General and Administrative Expenses		2022			2021
Selling, general and administrative expenses, GAAP	$	4,932	$	4,809
2022 Global Productivity Initiative		(4)			-
Selling, general and administrative expenses, non-GAAP	$	4,928	$	4,809
							Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales		2022			2021		Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP		37.0 %			36.9 %	10
2022 Global Productivity Initiative		(0.1)%			- %
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP		36.9 %			36.9 %		-
Other (Income) Expense, Net
	2022			2021
Other (income) expense, net, GAAP	$	51	$	40
2022 Global Productivity Initiative		(75)			-
Gain on the sale of land in Asia Pacific		47			-
Acquisition-related costs		(17)			-
Value-added tax matter in Brazil		-			26
Other (income) expense, net, non-GAAP	$	6	$	66
Operating Profit
	2022			2021		% Change
Operating profit, GAAP	$	2,691	$	2,967	(9)%
2022 Global Productivity Initiative		79			-
Gain on the sale of land in Asia Pacific		(47)			-
Acquisition-related costs		17			-
Value-added tax matter in Brazil		-			(26)
Operating profit, non-GAAP	$	2,740	$	2,941	(7)%
							Basis Point
Operating Profit Margin		2022			2021		Change
Operating profit margin, GAAP		20.2 %			22.8 %	(260)
2022 Global Productivity Initiative		0.6 %			- %
Gain on the sale of land in Asia Pacific		(0.4)%			- %
Acquisition-related costs		0.1 %			- %
Value-added tax matter in Brazil		- %			(0.2)%
Operating profit margin, non-GAAP		20.5 %			22.6 %	(210)
Interest (Income) Expense, Net
	2022			2021
Interest (income) expense, net, GAAP	$	98	$	152
Loss on early extinguishment of debt		-			(75)
Interest (income) expense, net, non-GAAP	$	98	$	77
Non-Service Related Postretirement Costs		2022			2021
Non-service related postretirement costs, GAAP	$	65	$	52
2022 Global Productivity Initiative		(13)			-
Non-service related postretirement costs, non-GAAP	$	52	$	52

Table 9

Continued

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Nine Months Ended September 30, 2022 and 2021

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

											2022
														Net Income
				Provision			Net Income			Less: Income		Attributable
		Income								To		Effective			Diluted
				For			Including		Attributable to			Colgate-
		Before			Income		Noncontrolling		Noncontrolling			Palmolive		Income			Earnings
	Income Taxes			Taxes(1)			Interests			Interests			Company		Tax Rate(2)			Per Share
As Reported GAAP	$	2,528	$	604	$	1,924	$	144	$	1,780	23.9 %	$	2.12
2022 Global Productivity		92			19			73			1			72	(0.1)%			0.08
Initiative
Gain on the sale of land in Asia
Pacific		(47)			(11)			(36)			(21)			(15)		- %			(0.02)
Acquisition-related costs		17			2			15			-			15		(0.1)%			0.02
Non-GAAP	$	2,590	$	614	$	1,976	$	124	$	1,852	23.7 %	$	2.20
											2021
														Net Income
				Provision			Net Income			Less: Income		Attributable
		Income								To		Effective			Diluted
				For			Including		Attributable to			Colgate-
		Before			Income		Noncontrolling		Noncontrolling			Palmolive		Income			Earnings
	Income Taxes			Taxes(1)			Interests			Interests			Company		Tax Rate(2)			Per Share
As Reported GAAP	$	2,763	$	613	$	2,150	$	132	$	2,018	22.2 %	$	2.38
Loss on early extinguishment of		75			20			55			-			55	0.1 %			0.06
debt
Value-added tax matter in Brazil		(26)			(6)			(20)			-			(20)		- %			(0.02)
Non-GAAP	$	2,812	$	627	$	2,185	$	132	$	2,053	22.3 %	$	2.42

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 adjustments on Income before income taxes and Provision for income taxes.