Item 16. FORM 10-K SUMMARY

None.

COLGATE-PALMOLIVE COMPANY

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			Colgate-Palmolive Company (Registrant)
Date: February 13, 2025			By			/s/ Noel Wallace
						Noel Wallace Chairman of the Board, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on February 13, 2025, by the following persons on behalf of the registrant and in the capacities indicated.

(a) Principal Executive Officer						(d) Directors:
/s/ Noel Wallace						/s/ Noel Wallace
Noel Wallace Chairman of the Board, President and Chief Executive Officer						Noel Wallace
(b) Principal Financial Officer						John P. Bilbrey, John T. Cahill, Steven A. Cahillane, Lisa M. Edwards, C. Martin Harris, Martina Hund-Mejean, Kimberly A. Nelson, Brian O. Newman, Lorrie M. Norrington*
/s/ Stanley J. Sutula III						*By: /s/ Jennifer M. Daniels
Stanley J. Sutula III Chief Financial Officer						Jennifer M. Daniels As Attorney-in-Fact
(c) Principal Accounting Officer
/s/ Gregory O. Malcolm
Gregory O. Malcolm Executive Vice President, Controller

Index to Financial Statements

			Page
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)			70
Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022			72
Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023 and 2022			73
Consolidated Balance Sheets as of December 31, 2024 and 2023			74
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2024, 2023 and 2022			75
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022			76
Notes to Consolidated Financial Statements			77
Market Information			121

All other financial statements and schedules not listed have been omitted since the required information is included in the financial statements or the notes thereto or is not applicable or required.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Colgate-Palmolive Company

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Colgate-Palmolive Company and its subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of income, of comprehensive income, of changes in shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Goodwill Impairment Assessment for a Certain Reporting Unit within the North America Oral, Personal and Home Care Segment Prior to the Reporting Structure Realignment

As described in Notes 2, 4 and 13 to the consolidated financial statements, goodwill within the North America Oral, Personal and Home Care segment was $1,108 million as of December 31, 2024, of which a portion relates to a certain reporting unit. Goodwill is subject to an impairment test at least annually or when events or changes in circumstances indicate that an asset may be impaired. In connection with management changes, the Company realigned the reporting structure of its skin health business effective July 1, 2024, and in conjunction with this reporting structure realignment, management completed a goodwill impairment assessment. As disclosed by management, determining the fair value of the Company’s reporting units for goodwill requires significant estimates and judgments by management. When a quantitative analysis is performed, management uses the income approach, which requires several estimates, including future cash flows consistent with management’s strategic plans, sales growth rates and discount rates.

The principal considerations for our determination that performing procedures relating to the goodwill impairment assessment for a certain reporting unit within the North America Oral, Personal and Home Care segment prior to the reporting structure realignment is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of a certain reporting unit within the North America Oral, Personal and Home Care segment prior to the reporting structure realignment; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the sales growth rates and the discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of a certain reporting unit within the North America Oral, Personal and Home Care segment prior to the reporting structure realignment. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of a certain reporting unit within the North America Oral, Personal and Home Care segment prior to the reporting structure realignment; (ii) evaluating the appropriateness of the income approach used by management; (iii) testing the completeness and accuracy of underlying data used in the income approach; and (iv) evaluating the reasonableness of the significant assumptions used by management related to the sales growth rates and the discount rate. Evaluating management’s assumptions related to the sales growth rates involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of a certain business within the North America Oral, Personal and Home Care segment; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the income approach and (ii) the reasonableness of the discount rate assumption.

/s/ PricewaterhouseCoopers LLP
New York, New York February 13, 2025
We have served as the Company’s auditor since 2002.

COLGATE-PALMOLIVE COMPANY

Consolidated Statements of Income

For the years ended December 31,

(Dollars in Millions Except Per Share Amounts)

			2024						2023						2022
Net sales			$	20,101					$	19,457					$	17,967
Cost of sales			7,940						8,131						7,719
Gross profit			12,161						11,326						10,248
Selling, general and administrative expenses			7,729						7,151						6,565
Other (income) expense, net			164						191						69
Goodwill and intangible assets impairment charges			—						—						721
Operating profit			4,268						3,984						2,893
Non-service related postretirement costs			87						360						80
Interest expense			292						287						167
Interest income			67						55						14
Income before income taxes			3,956						3,392						2,660
Provision for income taxes			907						937						693
Net income including noncontrolling interests			3,049						2,455						1,967
Less: Net income attributable to noncontrolling interests			160						155						182
Net income attributable to Colgate-Palmolive Company			$	2,889					$	2,300					$	1,785
Earnings per common share, basic			$	3.53					$	2.78					$	2.13
Earnings per common share, diluted			$	3.51					$	2.77					$	2.13

See Notes to Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Consolidated Statements of Comprehensive Income

For the years ended December 31,

(Dollars in Millions)

			2024						2023						2022
Net income including noncontrolling interests			$	3,049					$	2,455					$	1,967
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments			(343)						98						(146)
Retirement plan and other retiree benefit adjustments			43						(16)						413
Gains (losses) on cash flow hedges			8						(7)						60
Total Other comprehensive income (loss), net of tax			(292)						75						327
Total Comprehensive income including noncontrolling interests			2,757						2,530						2,294
Less: Net income attributable to noncontrolling interests			160						155						182
Less: Cumulative translation adjustments attributable to noncontrolling interests			(8)						(42)						(4)
Total Comprehensive income attributable to noncontrolling interests			152						113						178
Total Comprehensive income attributable to Colgate-Palmolive Company			$	2,605					$	2,417					$	2,116

See Notes to Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Consolidated Balance Sheets

As of December 31,

(Dollars in Millions Except Share and Per Share Amounts)

			2024						2023
Assets
Current Assets
Cash and cash equivalents			$	1,096					$	966
Receivables (net of allowances of $85 and $80, respectively)			1,521						1,586
Inventories			1,987						1,934
Other current assets			713						793
Total current assets			5,317						5,279
Property, plant and equipment, net			4,422						4,582
Goodwill			3,272						3,410
Other intangible assets, net			1,756						1,887
Deferred income taxes			195						214
Other assets			1,084						1,021
Total assets			$	16,046					$	16,393
Liabilities and Shareholders’ Equity
Current Liabilities
Debt payable within one-year			$	660					$	330
Accounts payable			1,805						1,698
Accrued income taxes			403						336
Other accruals			2,891						2,377
Total current liabilities			5,759						4,741
Long-term debt			7,289						8,219
Deferred income taxes			343						361
Other liabilities			2,111						2,115
Total liabilities			15,502						15,436
Commitments and contingent liabilities			—						—
Shareholders’ Equity
Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued)			1,466						1,466
Additional paid-in capital			4,181						3,808
Retained earnings			26,145						25,289
Accumulated other comprehensive income (loss)			(4,222)						(3,937)
Treasury stock, at cost			(27,358)						(26,017)
Total Colgate-Palmolive Company shareholders’ equity			212						609
Noncontrolling interests			332						348
Total equity			544						957
Total liabilities and equity			$	16,046					$	16,393

See Notes to Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

			Colgate-Palmolive Company Shareholders’ Equity
			Common Stock						Additional Paid-In Capital						Unearned Compensation						Treasury Stock						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Noncontrolling Interests
Balance, January 1, 2022			$	1,466					$	3,269					$	(1)					$	(24,089)					$	24,350					$	(4,386)					$	362
Net income			—						—						—						—						1,785						—						182
Other comprehensive income (loss), net of tax			—						—						—						—						—						331						(4)
Dividends ($1.86)/per share*			—						—						—						—						(1,562)						—						(135)
Stock-based compensation expense			—						125						—						—						—						—						—
Shares issued for stock options			—						190						—						226						—						—						—
Shares issued for restricted stock awards			—						(40)						—						40						—						—						—
Treasury stock acquired			—						—						—						(1,308)						—						—						—
Other			—						2						—						3						—						—						—
Balance, December 31, 2022			$	1,466					$	3,546					$	(1)					$	(25,128)					$	24,573					$	(4,055)					$	405
Net income			—						—						—						—						2,300						—						155
Other comprehensive income (loss), net of tax			—						—						—						—						—						117						(42)
Dividends ($1.91)/per share*			—						—						—						—						(1,584)						—						(170)
Stock-based compensation expense			—						122						—						—						—						—						—
Shares issued for stock options			—						170						—						212						—						—						—
Shares issued for restricted stock awards			—						(34)						—						34						—						—						—
Treasury stock acquired			—						—						—						(1,128)						—						—						—
Other			—						4						1						(7)						—						1						—
Balance, December 31, 2023			$	1,466					$	3,808					$	—					$	(26,017)					$	25,289					$	(3,937)					$	348
Net income			—						—						—						—						2,889						—						160
Other comprehensive income (loss), net of tax			—						—						—						—						—						(284)						(8)
Dividends ($2.48)/per share*			—						—						—						—						(2,034)						—						(168)
Stock-based compensation expense			—						135						—						—						—						—						—
Shares issued for stock options			—						284						—						354						—						—						—
Shares issued for restricted stock awards			—						(52)						—						52						—						—						—
Treasury stock acquired			—						—						—						(1,739)						—						—						—
Other			—						6						—						(8)						1						(1)						—
Balance, December 31, 2024			$	1,466					$	4,181					$	—					$	(27,358)					$	26,145					$	(4,222)					$	332

• Five dividends were declared in 2024. Four dividends were declared in 2023 and 2022.

See Notes to Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Consolidated Statements of Cash Flows

For the years ended December 31,

(Dollars in Millions)

			2024						2023						2022
Operating Activities
Net income including noncontrolling interests			$	3,049					$	2,455					$	1,967
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization			605						567						545
ERISA litigation matter			—						267						—
Restructuring and termination benefits, net of cash			51						(23)						49
Stock-based compensation expense			135						122						125
Gain on the sale of land			—						—						(47)
Goodwill and intangible assets impairment charges			—						—						721
Deferred income taxes			(77)						(98)						(78)
Cash effects of changes in:
Receivables			(56)						(37)						(227)
Inventories			(100)						194						(333)
Accounts payable and other accruals			516						309						(115)
Other non-current assets and liabilities			(16)						(11)						(51)
Net cash provided by operations			4,107						3,745						2,556
Investing Activities
Capital expenditures			(561)						(705)						(696)
Purchases of marketable securities and investments			(574)						(506)						(470)
Proceeds from sale of marketable securities and investments			564						502						322
Payment for acquisitions, net of cash acquired			—						—						(809)
Proceeds from the sale of land			—						—						47
Other investing activities			37						(33)						5
Net cash used in investing activities			(534)						(742)						(1,601)
Financing Activities
Short-term borrowing (repayment) less than 90 days, net			93						(906)						540
Principal payments on debt			(503)						(903)						(406)
Proceeds from issuance of debt			2						1,495						1,513
Dividends paid			(1,789)						(1,749)						(1,691)
Purchases of treasury shares			(1,739)						(1,128)						(1,308)
Proceeds from exercise of stock options			638						380						418
Other financing activities			(91)						18						(18)
Net cash used in financing activities			(3,389)						(2,793)						(952)
Effect of exchange rate changes on Cash and cash equivalents			(54)						(19)						(60)
Net increase (decrease) in Cash and cash equivalents			130						191						(57)
Cash and cash equivalents at beginning of year			966						775						832
Cash and cash equivalents at end of year			$	1,096					$	966					$	775
Supplemental Cash Flow Information
Income taxes paid			$	933					$	937					$	945
Interest paid			$	302					$	280					$	151

See Notes to Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements

(Dollars in Millions Except Share and Per Share Amounts)

1. Nature of Operations

The Company manufactures and markets a wide variety of products in the U.S. and around the world in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners and other similar items. These products are sold primarily to a variety of retailers, wholesalers, distributors, dentists and, in some geographies, skin health professionals. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill’s Pet Nutrition. The principal customers for Pet Nutrition products are authorized pet supply retailers, veterinarians and eCommerce retailers. Some of our products are also sold direct-to-consumer. Principal global and regional trademarks include Colgate, Palmolive, Darlie, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet.

The Company’s principal classes of products accounted for the following percentages of worldwide Net sales for the past three years:

						2024						2023						2022
Oral Care						43		%				42		%				43		%
Personal Care						18		%				19		%				19		%
Home Care						17		%				17		%				17		%
Pet Nutrition						22		%				22		%				21		%
Total						100		%				100		%				100		%

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

2. Summary of Significant Accounting Policies

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Colgate-Palmolive Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. The Company’s investments in consumer products companies with interests ranging between 20% and 50%, where the Company has significant influence over the investee, are accounted for using the equity method. Net income (loss) from such investments is recorded in Other (income) expense, net in the Consolidated Statements of Income. As of December 31, 2024 and 2023, equity method investments included in Other assets in the Consolidated Balance Sheets were $81 and $83, respectively. Unrelated third parties hold the remaining ownership interests in these investments. Investments with less than a 20% interest are recorded at cost and periodically adjusted based on observable price changes or quoted market prices in active markets, if applicable.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to use judgment and make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are completed. As such, the most significant uncertainty in the Company’s assumptions and estimates involved in preparing the financial statements includes pension and other retiree benefit cost assumptions, stock-based compensation, asset impairments, uncertain tax positions, tax valuation allowances and legal and other contingency reserves. Additionally, the Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments and retirement plan assets. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. Actual results could ultimately differ from those estimates.

Revenue Recognition

The Company’s revenue contracts represent a single performance obligation to sell its products to trade customers. Sales are recorded at the time control of the products is transferred to trade customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the products. Control is the ability of trade customers to “direct the use of” and “obtain the benefit from” our products. In evaluating the timing of the transfer of control of products to trade customers, the Company considers several control indicators, including significant risks and rewards of products, the Company’s right to payment and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to trade customers.

Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration. Variable consideration includes expected sales returns and the cost of current and continuing promotional programs. Current promotional programs primarily include product listing allowances and co-operative advertising arrangements. Continuing promotional programs are predominantly consumer coupons and volume-based sales incentive arrangements. The cost of promotional programs is estimated using the expected value method considering all reasonably available information, including the Company’s historical experience and its current expectations, and is reflected in the transaction price when sales are recorded. Adjustments to the cost of promotional programs in subsequent periods are generally not material, as the Company’s promotional programs are typically of short duration, thereby reducing the uncertainty inherent in such estimates.

Sales returns are generally accepted at the Company’s discretion and are not material to the Company’s Consolidated Financial Statements. The Company’s contracts with trade customers do not have significant financing components or non-cash consideration and the Company does not have unbilled revenue or significant amounts of prepayments from customers. The Company records Net sales excluding taxes collected on its sales to its trade customers. Shipping and handling activities are accounted for as contract fulfillment costs and classified as Selling, general and administrative expenses.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Shipping and Handling Costs

Shipping and handling costs (also referred to as logistics costs) are classified as Selling, general and administrative expenses and were $1,777, $1,771 and $1,874 for the years ended December 31, 2024, 2023 and 2022, respectively.

Marketing Costs

The Company markets its products through advertising and other promotional activities. Advertising costs are included in Selling, general and administrative expenses and are expensed as incurred. Certain consumer and trade promotional programs, such as consumer coupons, are recorded as a reduction of sales.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

Inventories

The cost of approximately 75% of inventories is determined using the FIFO method, which is stated at the lower of cost or net realizable value. The cost of the remaining inventories, in the U.S. and Mexico, is determined using the LIFO method, which is stated at the lower of cost or market. Inventories in excess of one year of forecasted sales are classified in the Consolidated Balance Sheets as non-current “Other assets.”

Property, Plant and Equipment

Land, buildings and machinery and equipment are stated at cost. Depreciation is provided, primarily using the straight-line method, over the estimated useful lives ranging from 3 to 15 years for machinery and equipment and up to 40 years for buildings. Depreciation attributable to manufacturing operations is included in Cost of sales. The remaining component of depreciation is included in Selling, general and administrative expenses.

Goodwill and Other Intangibles

Goodwill and indefinite-life intangible assets, such as the Company’s global brands, are subject to impairment tests at least annually or when events or changes in circumstances indicate that an asset may be impaired. In assessing impairment, the Company performs either a quantitative or a qualitative analysis.

Determining the fair value of the Company’s reporting units for goodwill and the fair value of its intangible assets requires significant estimates and judgments by management. When a quantitative analysis is performed, the Company generally uses the income approach, which requires several estimates, including future cash flows consistent with management’s strategic plans, sales growth rates and the selection of royalty rates and discount rates. The Company generally engages a third-party valuation firm to assist in determining the fair value of intangible assets acquired in business combinations.

As a result of a reporting structure realignment, the Company reallocated the goodwill of a certain reporting unit from the Europe segment to the North America segment. Before and after the reporting structure realignment, the Company completed an assessment indicating no goodwill impairment was required. Refer to Note 13, Segment Information for additional information.

Other intangible assets with finite lives, such as local brands and trademarks, customer relationships and non-compete agreements, are amortized over their estimated useful lives, generally ranging from 5 to 40 years. Amortization expense related to intangible assets is included in Other (income) expense, net, which is included in Operating profit.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Income Taxes

The provision for income taxes is determined using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based upon the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect at the time such differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return. The Company recognizes interest expense and penalties related to unrecognized tax benefits within Provision for income taxes.

Financial Instruments

Derivative instruments are recorded as assets and liabilities at estimated fair value based on available market information. The Company’s derivative instruments that qualify for hedge accounting are designated as either fair value hedges, cash flow hedges or net investment hedges. For fair value hedges, changes in the fair value of the derivative, as well as the offsetting changes in the fair value of the hedged item, are recognized in earnings each period. For cash flow hedges, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) and are recognized in earnings when the offsetting effect of the hedged item is also recognized in earnings. For hedges of the net investment in foreign subsidiaries, changes in the fair value of the derivative are recorded in Other comprehensive income (loss) to offset the change in the value of the net investment being hedged. Cash flows related to hedges are classified in the same category as the cash flows from the hedged item in the Consolidated Statements of Cash Flows.

The Company may also enter into certain foreign currency and interest rate instruments that economically hedge certain of its risks but do not qualify for hedge accounting. Changes in fair value of these derivative instruments, based on quoted market prices, are recognized in earnings each period. The Company’s derivative instruments and other financial instruments are more fully described in Note 6, Fair Value Measurements and Financial Instruments along with the related fair value measurement considerations.

Stock-Based Compensation

The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units (both performance-based and time-vested), based on the fair value of those awards at the date of grant over the requisite service period. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to estimate the fair value of stock option awards. In addition to performance conditions, performance-based restricted stock units also include a total shareholder return modifier. Because the total shareholder return modifier is considered a market condition, the Company uses a Monte-Carlo simulation model to determine the fair value of performance-based restricted stock units. The fair value of time-vested restricted stock units is determined based on the closing market price of the Company’s stock at the date of grant. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model are more fully described in Note 7, Capital Stock and Stock-Based Compensation Plans.

Currency Translation

The assets and liabilities of foreign subsidiaries, other than those operating in highly inflationary environments, are translated into U.S. dollars at year-end exchange rates with resulting translation gains and losses accumulated in a separate component of shareholders’ equity. Income and expense items are translated into U.S. dollars at average rates of exchange prevailing during the year.

For subsidiaries operating in highly inflationary environments, local currency-denominated non-monetary assets, including inventories, goodwill and property, plant and equipment, are remeasured at their historical exchange rates, while local currency-denominated monetary assets and liabilities are remeasured at year-end exchange rates. Remeasurement adjustments for these operations are included in Net income attributable to Colgate-Palmolive Company.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Recent Accounting Pronouncements and Disclosure Rules

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2024-04, “Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments.” This ASU clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions. This guidance is effective for the Company for fiscal years beginning after December 15, 2025 and is not expected to have an impact on the Company’s Consolidated Financial Statements.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU requires additional disclosures related to the disaggregation of income statement expense categories. This guidance is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Other than the new disclosure requirements, this guidance will not have an impact on the Company’s Consolidated Financial Statements.

In March 2024, the SEC finalized rules intended to enhance and standardize climate-related disclosures in registrants’ registration statements and Annual Reports on Form 10-K. The new rules would require climate-related disclosures, including as they relate to governance, strategy, risk management, targets and goals and greenhouse gas emissions. In addition, the rules would require certain climate-related disclosures as it relates to severe weather events and other natural conditions and carbon offsets and renewable energy credits. In April 2024, the SEC voluntarily stayed the rules due to pending judicial review. Other than the new disclosure requirements, this guidance will not have an impact on the Company’s Consolidated Financial Statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU improves the transparency of income tax disclosure by requiring consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. This guidance is effective for the Company for fiscal years beginning after December 15, 2024. Other than the new disclosure requirements, this guidance will not have an impact on the Company’s Consolidated Financial Statements.

In December 2023, the FASB issued ASU No. 2023-08, “Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” This ASU improves the accounting for certain crypto assets by requiring companies to measure them at fair value for each reporting period with changes in fair value recognized in net income. This guidance is effective for the Company for fiscal years beginning after December 15, 2024 and is not expected to have an impact on the Company’s Consolidated Financial Statements.

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU modified the disclosure and presentation requirements primarily through enhanced disclosures of significant segment expenses and other segment items. The Company adopted this guidance in 2024. See Note 13, Segment Information for additional information.

In October 2023, the FASB issued ASU No. 2023-06, “Disclosure Improvements—Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027. Other than the new disclosure requirements, this guidance will not have an impact on the Company’s Consolidated Financial Statements.

In August 2023, the FASB issued ASU No. 2023-05, “Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement.” This ASU requires a joint venture to initially measure all contributions received upon its formation at fair value. This guidance is applicable to joint ventures with a formation date on or after January 1, 2025 and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

In March 2023, the FASB issued ASU No. 2023-01, “Leases (Topic 842): Common Control Arrangements.” This ASU clarified the accounting for leasehold improvements for leases under common control. The guidance was effective for the Company beginning on January 1, 2024 and did not have a material impact on the Company’s Consolidated Financial Statements.

In September 2022, the FASB issued ASU No. 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer that uses supplier finance programs to make annual disclosures about the programs’ key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period and associated roll-forward information. The Company adopted the guidance beginning on January 1, 2023, and with respect to the roll-forward information disclosure, beginning on January 1, 2024. See Note 15, Supplier Finance Programs for additional information.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

3. Restructuring and Related Implementation Charges

On January 27, 2022, the Board approved a targeted productivity program (the “2022 Global Productivity Initiative”). All initiatives have been implemented and the program concluded on December 31, 2024. The 2022 Global Productivity Initiative resulted in the reallocation of resources towards the Company’s strategic priorities and faster growth businesses, efficiencies in the Company’s operations and the streamlining of its supply chain to reduce structural costs.

Over the course of the 2022 Global Productivity Initiative, the Company incurred total pretax charges of $228 ($186 aftertax) in connection with the implementation of various projects as follows:

			Total Program Charges
			as of December 31, 2024
Employee-Related Costs			$	175
Incremental Depreciation			13
Asset Impairments			1
Other			39
Total			$	228

Total pretax charges resulting from the 2022 Global Productivity Initiative were comprised of the following categories: employee-related costs, including severance, pension and other termination benefits (80%); asset-related costs, primarily accelerated depreciation and asset write-downs (5%); and other charges (15%), which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities and the implementation of new strategies. Over the course of the 2022 Global Productivity Initiative, approximately 80% of the charges resulted in cash expenditures.

For the twelve months ended December 31, 2024 and December 31, 2023, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows:

			Twelve Months Ended December 31,
			2024						2023
Gross Profit			$	20					$	1
Selling, general and administrative expenses			6						2
Other (income) expense, net			59						24
Non-service related postretirement costs			—						5
Total 2022 Global Productivity Initiative charges, pretax			$	85					$	32
Total 2022 Global Productivity Initiative charges, aftertax			$	73					$	25

Restructuring and related implementation charges are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Total charges incurred for the 2022 Global Productivity Initiative relate to initiatives undertaken by the following reportable operating segments:

			Twelve Months Ended December 31,												Total Program Charges
			2024						2023
North America(1)			3		%				15		%				9		%
Latin America			—		%				—		%				9		%
Europe(1)			89		%				19		%				44		%
Asia Pacific			—		%				20		%				7		%
Africa/Eurasia			—		%				5		%				6		%
Hill's Pet Nutrition			6		%				23		%				11		%
Corporate			2		%				18		%				14		%
Total			100		%				100		%				100		%

(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of July 1, 2024. See Note 13, Segment Information for additional details.

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-Related Costs						Incremental Depreciation						Asset Impairments						Other						Total
Balance at December 31, 2022						$	30					$	—					$	1					$	3					$	34
Charges						24						—						—						8						32
Cash Payments						(45)						—						—						(10)						(55)
Charges against assets						(5)						—						(1)						—						(6)
Foreign exchange						6						—						—						—						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.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

4. Goodwill and Other Intangible Assets

The changes in net carrying value of Goodwill by segment for the years ended December 31, 2024 and 2023 were as follows:

			2023
			Beginning Balance									Foreign currency translation						Ending Balance
Oral, Personal and Home Care
North America			$	906								$	2					$	908
Latin America			168									11						179
Europe			1,504									67						1,571
Asia Pacific			179									—						179
Africa/Eurasia			107									(19)						88
Total Oral, Personal and Home Care			2,864									61						2,925
Pet Nutrition			488									(3)						485
Total Goodwill			$	3,352								$	58					$	3,410

			2024
			Beginning Balance									Reallocation (1)						Foreign currency translation						Ending Balance
Oral, Personal and Home Care
North America			$	908								$	223					$	(23)					$	1,108
Latin America			179									—						(34)						145
Europe			1,571									(223)						(67)						1,281
Asia Pacific			179									—						(1)						178
Africa/Eurasia			88									—						(10)						78
Total Oral, Personal and Home Care			2,925									—						(135)						2,790
Pet Nutrition			485									—						(3)						482
Total Goodwill			$	3,410								$	—					$	(138)					$	3,272

(1) As a result of a reporting structure realignment, the Company reallocated the goodwill of a certain reporting unit from the Europe segment to the North America segment. Before and after the reallocation of the goodwill, the Company completed an assessment indicating no goodwill impairment was required as a result of this segment reporting structure realignment. Refer to Note 13, Segment Information for additional information.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Other intangible assets as of December 31, 2024 and 2023 were comprised of the following:

						2024																		2023
						Gross Carrying Amount						Accumulated Amortization						Net						Gross Carrying Amount						Accumulated Amortization						Net
Trademarks - finite life						$	1,135					$	(545)					$	590					$	1,167					$	(519)					$	648
Other finite life intangible assets						603						(385)						218						624						(363)						261
Indefinite life intangible assets						948						—						948						978						—						978
Total Other intangible assets						$	2,686					$	(930)					$	1,756					$	2,769					$	(882)					$	1,887

The change in the net carrying amounts of Other intangible assets during 2024 was due to foreign currency translation and amortization expense of $75. Annual estimated amortization expense for each of the next five years is expected to be approximately $68. In 2023, the Company re-characterized a certain trademark from an indefinite to a finite life intangible asset based on an assessment of certain macroeconomic conditions, historical performance and demand. The carrying value of this trademark as of December 31, 2024 is $234 and is being amortized over its estimated remaining useful life of 24 years.

As of the date of the annual impairment test of indefinite-lived intangible assets, the fair value of one of the Company’s indefinite-lived trademark intangible assets exceeded its carrying value by less than 20%. The carrying value of this trademark is $293 as of December 31, 2024.

Given the inherent uncertainties of estimating the future cash flows, the impact of interest rates and inflation on macroeconomic conditions, actual results may differ from management's current estimates which could potentially result in impairment charges in future periods.

5. Long-Term Debt and Credit Facilities

Long-term debt consisted of the following at December 31:

						Weighted Average Interest Rate						Maturities												2024						2023
Notes						3.0%						2025			-			2078						$	6,946					$	7,580
Commercial paper						3.0%						2025												936						606
Finance Lease Obligations												Various												59						53
																								7,941						8,239
Less: Current portion of long-term debt																								(652)						(20)
Total																								$	7,289					$	8,219

Debt payable within one year consisted of the following at December 31:

																								2024						2023
Notes and loans payable																								$	8					$	310
Current portion of long-term debt																								652						20
Debt payable within one year																								$	660					$	330

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

The Company classifies commercial paper as long-term debt when it has the intent and ability to refinance such obligations on a long-term basis. Excluding commercial paper, scheduled maturities of long-term debt and finance leases outstanding as of December 31, 2024, were as follows:

Years Ended December 31,
2025			$	652
2026			1,035
2027			509
2028			612
2029			519
Thereafter			3,678
Total			$	7,005

The Company’s debt issuances and redemptions support its capital structure strategy objectives of funding its business and growth initiatives while minimizing its risk-adjusted cost of capital. During the year ended December 31, 2024, the Company redeemed at maturity $500 of ten-year Medium-Term Notes with a fixed coupon of 3.25%. The redemption was financed with commercial paper borrowings. In March 2023, the Company issued $500 of three-year Senior Notes at a fixed coupon rate of 4.800%, $500 of five-year Senior Notes at a fixed coupon rate of 4.600% and $500 of ten-year Senior Notes at a fixed coupon rate of 4.600%.

At December 31, 2024, the Company had access to unused domestic and foreign lines of credit of $3,725 (including under the facility discussed below) and could also issue long-term debt pursuant to an effective shelf registration statement. In November 2022, the Company entered into an amended and restated $3,000 five-year revolving credit facility with a syndicate of banks for a five-year term expiring November 2027, which replaced, on substantially similar terms, the Company’s $3,000 revolving credit facility that was scheduled to expire in August 2026. In November 2023, the Company extended the term of the credit facility for an additional year, expiring in November 2028. In November 2024, the Company further extended the term of the credit facility for an additional year, expiring in November 2029. Commitment fees related to the credit facility are not material.

Certain agreements with respect to the Company’s bank borrowings contain financial and other covenants as well as cross-default provisions. Noncompliance with these requirements could ultimately result in the acceleration of amounts owed. The Company is in full compliance with all such requirements.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

6. Fair Value Measurements and Financial Instruments

The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.

The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. Provided below are details of the Company’s exposures by type of risk and derivative instruments by type of hedge designation.

Valuation Considerations

The Company’s derivative instruments include foreign currency contracts and commodity contracts. The fair value of these instruments are classified as follows:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions.

Foreign Exchange Risk

As the Company markets its products in over 200 countries and territories, it is exposed to currency fluctuations related to manufacturing and selling its products in currencies other than the U.S. dollar. The Company manages its foreign currency exposures through a combination of cost containment measures, sourcing strategies, selling price increases and the hedging of certain costs in an effort to minimize the impact on earnings of foreign currency rate movements.

The Company primarily utilizes foreign currency contracts, including forward and swap contracts, option contracts, foreign and local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. The duration of foreign currency contracts generally does not exceed 12 months and the contracts are valued using observable market rates (Level 2 valuation).

Interest Rate Risk

The Company manages its targeted mix of fixed and floating rate debt with debt issuances and by entering into interest rate swaps in order to mitigate fluctuations in earnings and cash flows that may result from interest rate volatility. The Company utilizes forward-starting interest rate swaps to mitigate the risk of variability in interest rates for future debt issuances. The notional amount, interest payment and maturity date of the swaps generally match the principal, interest payment and maturity date of the related debt, and the swaps are valued using observable benchmark rates (Level 2 valuation).

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Commodity Price Risk

The Company is exposed to price volatility related to raw materials used in production, such as resins, essential oils, tropical oils, pulp, tallow, corn, poultry and soybeans. The Company manages its raw material exposures through a combination of cost containment measures, sourcing strategies, ongoing productivity initiatives and the limited use of commodity hedging contracts. Futures contracts are used on a limited basis, primarily in the Hill’s Pet Nutrition segment, to manage volatility related to raw material inventory purchases of certain traded commodities, and these contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of the commodity contracts generally does not exceed 12 months.

Credit Risk

The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material as it is the Company’s policy to contract with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations.

The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Consolidated Balance Sheets as of December 31, 2024 and 2023:

			Assets																		Liabilities
			Account						Fair Value												Account						Fair Value
Designated derivative instruments									December 31, 2024						December 31, 2023												December 31, 2024						December 31, 2023
Foreign currency contracts			Other current assets						33						19						Other accruals						22						25
Commodity contracts			Other current assets						—						—						Other accruals						1						1
Total designated									$	33					$	19											$	23					$	26
Other financial instruments
Marketable securities			Other current assets						160						179
Total other financial instruments									$	160					$	179

The carrying amount of cash, cash equivalents, accounts receivable and short-term debt approximated fair value as of December 31, 2024 and 2023. The estimated fair value of the Company’s long-term debt, including the current portion, as of December 31, 2024 and 2023, was $7,433 and $7,862, respectively, and the related carrying value was $7,941 and $8,239, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation).

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

The following tables present the notional values as of:

						December 31, 2024
						Foreign Currency Contracts						Foreign Currency Debt																		Commodity Contracts						Total
Fair Value Hedges						$	1,669					$	—																	$	—					$	1,669
Cash Flow Hedges						1,023						—																		18						1,041
Net Investment Hedges						289						3,750																		—						4,039

						December 31, 2023
						Foreign Currency Contracts						Foreign Currency Debt																		Commodity Contracts						Total
Fair Value Hedges						$	1,625					$	—																	$	—					$	1,625
Cash Flow Hedges						869						—																		39						908
Net Investment Hedges						280						3,908																		—						4,188

The amount of gain (loss) recognized in income associated with fair value hedges did not have a material impact on the Company’s Consolidated Financial Statements during the twelve months ended December 31, 2024.

The amount of gain (loss) recognized in income and Accumulated Other Comprehensive Income (AOCI) associated with cash flow hedges did not have a material impact on the Company’s Consolidated Financial Statements during the twelve months ended December 31, 2024.

The following table presents the amount of gain (loss) on net investment hedges recognized in the Company’s AOCI:

						Gain (Loss) Recognized in AOCI
						Twelve Months Ended December 31,
Hedging instruments:						2024						2023
Foreign currency contracts						$	42					$	(34)
Foreign currency debt						211						(124)
Total gain (loss) on net investment hedges						$	253					$	(158)

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

7. Capital Stock and Stock-Based Compensation Plans

Preference Stock

The Company has the authority to issue 50,262,150 shares of preference stock.

Stock Repurchases

On March 10, 2022, the Board authorized the repurchase of shares of the Company’s common stock having an aggregate purchase price of up to $5 billion under a new share repurchase program, which replaced a previously authorized share repurchase program. The Board also has authorized share repurchases on an ongoing basis to fulfill certain requirements of the Company’s compensation and benefit programs. The shares are repurchased from time to time in open market or privately negotiated transactions at the Company’s discretion, subject to market conditions, customary blackout periods and other factors. The Company repurchased its common stock at a cost of $1,739 during 2024.

The Company may use either authorized and unissued shares or treasury shares to meet share requirements resulting from the exercise of stock options and the vesting of restricted stock unit awards.

A summary of common stock and treasury stock activity for the three years ended December 31 is as follows:

						Common Stock Outstanding						Treasury Stock
Balance, January 1, 2022						840,480,284						625,226,076
Common stock acquired						(17,060,788)						17,060,788
Shares issued for stock options						5,654,692						(5,654,692)
Shares issued for restricted stock units and other						1,138,418						(1,138,418)
Balance, December 31, 2022						830,212,606						635,493,754
Common stock acquired						(14,735,909)						14,735,909
Shares issued for stock options						5,318,430						(5,318,430)
Shares issued for restricted stock units and other						617,642						(617,642)
Balance, December 31, 2023						821,412,769						644,293,591
Common stock acquired						(18,321,422)						18,321,422
Shares issued for stock options						8,606,699						(8,606,699)
Shares issued for restricted stock units and other						876,652						(876,652)
Balance, December 31, 2024						812,574,698						653,131,662

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Stock-Based Compensation

The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock units, based on the fair value of those awards at the date of grant. The fair value of restricted stock units, generally based on market price, is amortized ratably over the requisite service period. The estimated fair value of stock options on the date of grant, based on the Black-Scholes value described below, is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company accounts for forfeitures as they occur. Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation cost from the grant date through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award.

The Company has one incentive compensation plan pursuant to which it issues restricted stock units (both performance-based and time-vested) and stock options to employees and shares of common stock and stock options to non-employee directors. The Personnel and Organization Committee of the Board, which is comprised entirely of independent directors, administers the incentive compensation plan. The total stock-based compensation expense charged against pretax income for this plan was $135, $122 and $125 for the years ended December 31, 2024, 2023 and 2022, respectively. The total income tax benefit recognized on stock-based compensation, excluding excess tax benefits, was approximately $26, $22 and $25 for the years ended December 31, 2024, 2023 and 2022, respectively.

Stock-based compensation expense is recorded within Selling, general and administrative expenses in the Corporate segment as these amounts are not included in internal measures of segment operating performance.

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The weighted-average fair value assumptions are summarized in the following table:

						2024						2023						2022
Expected term of options						6 years						6 years						6 years
Expected volatility rate						20.5		%				19.8		%				21.1		%
Risk-free interest rate						3.8		%				4.3		%				3.0		%
Expected dividend yield						2.1		%				2.5		%				2.4		%
Weighted-average estimated fair value						$	22.65					$	14.89					$	14.71

The weighted-average expected term of options granted each year was determined with reference to historical exercise and post-vesting cancellation experience, the vesting period of the awards and the contractual term of the awards, among other factors. Expected volatility incorporates implied share-price volatility derived from exchange traded options on the Company’s common stock. The risk-free interest rate for the expected term of the option is based on the yield of a zero-coupon U.S. Treasury bond with a maturity period equal to the option’s expected term.

Stock Options

The Company issues non-qualified stock options to non-employee directors, officers and other key employees. Stock options have a contractual term of eight years and generally vest ratably over three years. As of December 31, 2024, approximately 19,248,078 shares of common stock were available for future stock option grants.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

A summary of stock option activity during 2024 is presented below:

						Shares (in thousands)						Weighted Average Exercise Price						Weighted Average Remaining Contractual Life (in years)						Intrinsic Value of Unexercised In-the-Money Options
Options outstanding, January 1, 2024						20,742						$	75
Granted						955						106
Exercised						(8,662)						74
Forfeited						(240)						76
Expired						(21)						73
Options outstanding, December 31, 2024						12,774						78						5						$	176
Options exercisable, December 31, 2024						9,265						$	76					4						$	136

As of December 31, 2024, there was $12 of total unrecognized compensation expense related to unvested stock options, which will be recognized over a weighted-average period of 1.3 years. The total intrinsic value of options exercised during the years ended December 31, 2024, 2023 and 2022 was $150, $28 and $47, respectively.

The benefits of tax deductions in excess of grant date fair value resulting from the exercise of stock options and vesting of restricted stock unit awards for the years ended December 31, 2024, 2023 and 2022 were $18, $4 and $2, respectively, and are recognized in the provision for income taxes as a discrete item in the quarterly period in which they occur and classified as an operating cash flow. Cash proceeds received from options exercised for the years ended December 31, 2024, 2023 and 2022 were $638, $380 and $418, respectively.

Performance-based Restricted Stock Units

Under the Company’s long-term incentive compensation program, the Company grants officers and other key employees a target number of unearned performance-based restricted stock units at the beginning of each three-year performance cycle. Awards are earned and vest following the conclusion of the performance period on the basis of achievement of performance goals established at the commencement of each three-year performance period.

A summary of performance-based restricted stock unit activity for the year ended December 31, 2024 is presented below:

						Shares (in thousands)						Weighted Average Grant Date Fair Value Per Award
Performance-based restricted stock units as of January 1, 2024						1,069						$	68
Activity:
Granted						321						91
Vested						(283)						70
Forfeited						(89)						72
Change due to performance and/or market condition achievement						19						57
Performance-based restricted stock units as of December 31, 2024						1,037						$	74

As of December 31, 2024, there was $32 of total unrecognized compensation expense related to unvested performance-based restricted stock unit awards, which will be recognized ratably over the remaining performance period.

The Company uses a Monte-Carlo simulation model to estimate the fair value of performance-based restricted stock units at the date of grant.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Time-Vested Restricted Stock Units

The Company also grants time-vested restricted stock unit awards. Awards either vest at the end of the restriction period, which is generally three years from the date of grant, or ratably over the restriction period. As of December 31, 2024, approximately 7,324,623 shares of common stock were available for future restricted stock unit awards.

A summary of restricted stock unit activity during 2024 is presented below:

						Shares (in thousands)						Weighted Average Grant Date Fair Value Per Award
Restricted stock units as of January 1, 2024						2,174						$	76
Activity:
Granted						854						105
Vested						(951)						76
Forfeited						(90)						77
Restricted stock units as of December 31, 2024						1,987						$	88

As of December 31, 2024, there was $68 of total unrecognized compensation expense related to unvested time-vested restricted stock unit awards, which will be recognized over a weighted-average period of 1.6 years. The total fair value of time-vested restricted stock units vested during the years ended December 31, 2024, 2023 and 2022 was $72, $45 and $40, respectively.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

8. Employee Stock Ownership Plan

In 1989, the Company expanded its Employee Stock Ownership Plan (“ESOP”) through the introduction of a leveraged ESOP that funds certain benefits for employees who have met eligibility requirements. As of December 31, 2024 and 2023, there were 7,428,343 and 8,348,104 shares of common stock, respectively, outstanding and issued to the Company’s ESOP.

During 2000, the ESOP entered into a loan agreement with the Company under which the benefits of the ESOP may be extended through 2035. As of December 31, 2024, the ESOP had no outstanding borrowings from the Company.

Dividends on stock held by the ESOP are paid to the ESOP trust and, together with cash contributions from the Company, are (a) used by the ESOP to repay principal and interest, (b) credited to participant accounts, (c) used for contributions to the Company’s defined contribution plans or (d) used to pay the Company’s defined contribution plan expenses. Stock is allocated to participants based upon the ratio of the current year’s debt service to the sum of total outstanding principal and interest payments over the life of the debt. As of December 31, 2024, 7,334,758 shares of common stock had been released and allocated to participant accounts and 93,585 shares of common stock were available for future release and allocation to participant accounts.

Dividends on the stock used to repay principal and interest or credited to participant accounts are deductible for income tax purposes and, accordingly, are reflected net of their tax benefit in the Consolidated Statements of Changes in Shareholders’ Equity.

Annual expense related to the ESOP was $0 in 2024, 2023 and 2022.

The Company paid dividends on the shares held by the ESOP of $16 in 2024, $17 in 2023 and $19 in 2022. The Company did not make any contributions to the ESOP in 2024, 2023 or 2022.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

9. Retirement Plans and Other Retiree Benefits

Retirement Plans

The Company and certain of its U.S. and foreign subsidiaries maintain defined benefit retirement plans. Benefits under these plans are based primarily on years of service and employees’ earnings.

In the U.S., effective January 1, 2014, the Company provides virtually all future retirement benefits through the Company’s defined contribution plan. As a result, service after December 31, 2013 is not considered for participants in the Company’s principal U.S. defined benefit retirement plan. Participants in the Company’s principal U.S. defined benefit retirement plan whose retirement benefit was determined under the cash balance formula continue to earn interest credits on their vested balances as of December 31, 2013 but no longer receive pay credits. Participants whose retirement benefit was determined under the final average earnings formula or career average earnings formula continue to have their accrued benefit adjusted for pay increases until termination of employment.

In the first quarter of 2023, the Company 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 lawsuit under the Employee Retirement Income Security Act seeking the recalculation of benefits and other relief associated with a 2005 residual annuity amendment to the Colgate-Palmolive Company Employees’ Retirement Income Plan (the “Retirement Plan”). The decision resulted in an increase in the obligations of the Retirement Plan, which based on the current funded status of the Retirement Plan and depending on further developments in the litigation, may require a cash contribution by the Company in 2025. See Note 12, Commitments and Contingencies for additional information.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

In the Company’s principal U.S. plans and certain funded foreign plans, funds are contributed to trusts in accordance with regulatory limits to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The target asset allocation for the Company’s defined benefit plans is as follows:

						United States						International
Asset Category
Equity securities						26		%				17		%
Fixed income securities						60		%				63		%
Other investments						14		%				20		%
Total						100		%				100		%

At December 31, 2024, the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows:

						Level of Valuation Input						Pension Plans
									United States						International
Cash and cash equivalents						Level 1						$	226					$	21
U.S. common stocks						Level 1						1						2
International common stocks						Level 1						—						15
Pooled funds(1)						Level 1						35						103
Fixed income securities(2)						Level 2						624						75
Guaranteed investment contracts(3)						Level 2						—						30
												886						246
Investments valued using NAV per share(4)
Domestic, developed and emerging markets equity funds												223						28
Fixed income funds(5)												68						222
Hedge funds(6)												—						7
Multi-asset funds(7)												157						2
Real estate funds(8)												—						27
												448						286
Other assets and liabilities, net(9)												(39)						5
Total Investments												$	1,295					$	537

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

At December 31, 2023, the allocation of the Company’s plan assets and the level of valuation input, as applicable, for each major asset category were as follows:

						Level of Valuation Input						Pension Plans
									United States						International
Cash and cash equivalents						Level 1						$	206					$	14
U.S. common stocks						Level 1						—						2
International common stocks						Level 1						—						20
Pooled funds(1)						Level 1						20						113
Fixed income securities(2)						Level 2						710						71
Guaranteed investment contracts(3)						Level 2						—						34
												936						254
Investments valued using NAV per share(4)
Domestic, developed and emerging markets equity funds												315						55
Fixed income funds(5)												99						219
Hedge funds(6)												—						7
Multi-asset funds(7)												40						1
Real estate funds(8)												—						30
												454						312
Other assets and liabilities, net(9)												(30)						—
Total Investments												$	1,360					$	566

(1)Pooled funds primarily invest in U.S. and foreign equity securities, debt and money market securities.

(2)The fixed income securities are traded over-the-counter and certain of these securities lack daily pricing or liquidity and as such are classified as Level 2. As of December 31, 2024 and December 31, 2023, approximately 30% of the U.S. pension plan fixed income portfolio was invested in U.S. treasury or agency securities, with the remainder invested in other government bonds and corporate bonds.

(3)The guaranteed investment contracts (“GICs”) represent contracts with insurance companies measured at the cash surrender value of each contract. The Level 2 valuation reflects that the cash surrender value is based principally on a referenced pool of investment funds with active redemption.

(4)Investments that are measured at fair value using net asset value (“NAV”) per share as a practical expedient have not been classified in the fair value hierarchy. The NAV is based on the value of the underlying investments owned, minus its liabilities, divided by the number of shares outstanding. There are no unfunded commitments related to these investments. Redemption notice period primarily ranges from 0-3 months and redemption frequency windows range from daily to quarterly.

(5)Fixed income funds primarily invest in U.S. government and investment grade corporate bonds.

(6)Consists of investments in underlying hedge fund strategies that are primarily implemented through the use of long and short equity and fixed income securities and derivative instruments such as futures and options.

(7)Multi-asset funds primarily invest across a variety of asset classes, including global stocks and bonds, as well as alternative strategies.

(8)Real estate is valued using the NAV per unit of funds that are invested in real estate property. The investment value of the real estate property is determined quarterly using independent market appraisals as determined by the investment manager.

(9)This category primarily includes unsettled trades for investments purchased and sold and interest receivables.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Equity securities in the U.S. defined benefit retirement plans did not include any investment in the Company’s common stock at either December 31, 2024 or December 31, 2023. No shares of the Company’s stock were purchased by the U.S. plans in 2024 or 2023. The plans received no dividends on the Company’s common stock in either 2024 or 2023.

Other Retiree Benefits

The Company and certain of its subsidiaries provide, to the extent not otherwise provided by government-sponsored plans, health and life insurance benefits or subsidies for retired employees who meet applicable eligibility requirements.

The Company uses a December 31 measurement date for its defined benefit and other retiree benefit plans. Summarized information for the Company’s defined benefit and other retiree benefit plans is as follows:

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

						Pension Plans																								Other Retiree Benefit Plans
						2024						2023						2024						2023						2024						2023
						United States												International
Change in Benefit Obligations
Benefit obligations at beginning of year						$	1,922					$	1,673					$	776					$	675					$	665					$	658
Service cost						1						—						16						15						7						7
Interest cost						99						91						33						33						36						38
Participants’ contributions						—						—						5						5						—						—
Plan amendments						—						—						—						—						—						(33)
Actuarial loss (gain)						(54)						36						(11)						65						(14)						38
Foreign exchange impact						—						—						(40)						29						(8)						4
Termination benefits						5						3						—						2						—						—
Curtailments and settlements						(1)						—						(18)						(6)						—						—
Benefit payments						(141)						(148)						(41)						(42)						(54)						(47)
ERISA litigation matter						—						267						—						—						—						—
Benefit obligations at end of year						$	1,831					$	1,922					$	720					$	776					$	632					$	665
Change in Plan Assets
Fair value of plan assets at beginning of year						$	1,360					$	1,363					$	566					$	516					$	—					$	—
Actual return on plan assets						49						115						18						26						—						—
Company contributions						29						30						37						39						54						47
Participants’ contributions						—						—						5						5						—						—
Foreign exchange impact						—						—						(31)						27						—						—
Settlements and acquisitions						(2)						—						(17)						(5)						—						—
Benefit payments						(141)						(148)						(41)						(42)						(54)						(47)
Fair value of plan assets at end of year						$	1,295					$	1,360					$	537					$	566					$	—					$	—
Funded Status
Benefit obligations at end of year						$	1,831					$	1,922					$	720					$	776					$	632					$	665
Fair value of plan assets at end of year						1,295						1,360						537						566						—						—
Net amount recognized						$	(536)					$	(562)					$	(183)					$	(210)					$	(632)					$	(665)
Amounts Recognized in Balance Sheet
Noncurrent assets						$	1					$	1					$	47					$	48					$	—					$	—
Current liabilities						(27)						(28)						(15)						(15)						(51)						(53)
Noncurrent liabilities						(510)						(535)						(215)						(243)						(581)						(612)
Net amount recognized						$	(536)					$	(562)					$	(183)					$	(210)					$	(632)					$	(665)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Actuarial loss						$	710					$	767					$	174					$	177					$	109					$	128
Transition/prior service cost(credit)						—						—						8						9						(159)						(180)
						$	710					$	767					$	182					$	186					$	(50)					$	(52)
Accumulated benefit obligation						$	1,818					$	1,907					$	668					$	719					$	—					$	—

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

						Pension Plans																								Other Retiree Benefit Plans
						2024						2023						2024						2023						2024						2023
						United States												International
Weighted-Average Assumptions Used to Determine Benefit Obligations
Discount rate						5.73		%				5.40		%				4.69		%				4.35		%				5.74		%				5.37		%
Long-term rate of compensation increase						3.50		%				3.50		%				3.36		%				3.19		%				—		%				—		%
ESOP growth rate						—		%				—		%				—		%				—		%				6.00		%				6.00		%
Medical cost trend rate of increase						—		%				—		%				—		%				—		%				7.00		%				6.00		%
Interest Crediting Rate						5.58		%				4.99		%				3.23		%				1.13		%				—		%				—		%

The actuarial gains recorded during 2024 for both the U.S. pension and Other retiree benefit plans were primarily a result of an increase in discount rates applied against future estimated benefit payments that resulted in a decrease in the benefit obligation for both the U.S. pension and Other retiree benefit plans. The actuarial losses recorded during 2023 for both the U.S. pension and Other retiree benefit plans were primarily a result of a decrease in discount rates applied against future estimated benefit payments that resulted in an increase in the benefit obligation for both the U.S. pension and Other retiree benefit plans.

The overall investment objective of the plans is to balance risk and return so that obligations to employees are met. The Company evaluates its expected long-term rate of return on plan assets on an annual basis. In determining the expected long-term rate of return, the Company considers the nature of the plans’ investments and the historical rates of return. The assumed expected long-term rate of return on plan assets for U.S. pension plans was 6.50% as of December 31, 2024 and December 31, 2023. Average annual rates of return on plan assets for the U.S. pension plans for the most recent 1-year, 5-year, 10-year, 15-year and 25-year periods were 5%, 2%, 4%, 6% and 5%, respectively. Similar assessments were performed in determining rates of return on international pension plan assets to arrive at the Company’s 2024 weighted-average expected long-term rate of return on plan assets of 5.69%.

The medical cost trend rate of increase assumed in measuring the expected cost of benefits is projected to decrease from 7.00% in 2025 to 5.00% by 2030, remaining at 4.50% for the years thereafter.

Pension plans with projected benefit obligations in excess of plan assets and plans with accumulated benefit obligations in excess of plan assets as of December 31 consisted of the following:

						2024						2023
Benefit Obligation Exceeds Fair Value of Plan Assets
Projected benefit obligation						$	2,251					$	2,352
Fair value of plan assets						1,486						1,532
Accumulated benefit obligation						2,075						2,204
Fair value of plan assets						1,345						1,428

Other Retiree Benefit plans with accumulated postretirement benefit obligation in excess of plan assets as of December 31 consisted of the following:

						2024						2023
Benefit Obligation Exceeds Fair Value of Plan Assets
Accumulated postretirement benefit obligation						$	632					$	665
Fair value of plan assets						—						—

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Summarized information regarding the net periodic benefit costs for the Company’s defined benefit and other retiree benefit plans is as follows:

						Pension Plans																																				Other Retiree Benefit Plans
						2024						2023						2022						2024						2023						2022						2024						2023						2022
						United States																		International
Components of Net Periodic Benefit Cost
Service cost						$	1					$	—					$	—					$	16					$	15					$	15					$	7					$	7					$	18
Interest cost						99						91						64						33						33						21						36						38						36
Expected return on plan assets						(85)						(79)						(101)						(29)						(25)						(21)						—						—						—
Amortization of transition and prior service costs (credits)						—						—						—						1						1						1						(21)						(20)						(6)
Amortization of actuarial loss						39						43						46						5						5						7						4						1						14
Net periodic benefit cost						$	54					$	55					$	9					$	26					$	29					$	23					$	26					$	26					$	62
Other postretirement charges						5						3						13						—						2						4						—						—						2
ERISA litigation matter						—						267						—						—						—						—						—						—						—
Total pension cost						$	59					$	325					$	22					$	26					$	31					$	27					$	26					$	26					$	64
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost
Discount rate						5.40		%				5.66		%				2.98		%				4.61		%				4.75		%				2.10		%				5.37		%				5.67		%				3.06		%
Expected long-term rate of return on plan assets						6.50		%				6.25		%				5.70		%				5.69		%				4.66		%				2.72		%				N/A						N/A						N/A
Long-term rate of compensation increase						3.50		%				3.50		%				3.50		%				3.24		%				3.22		%				2.89		%				—		%				—		%				—		%
ESOP growth rate						—		%				—		%				—		%				—		%				—		%				—		%				6.00		%				6.00		%				6.00		%
Medical cost trend rate of increase						—		%				—		%				—		%				—		%				—		%				—		%				6.00		%				6.25		%				6.00		%
Interest Crediting Rate						4.99		%				5.21		%				2.82		%				0.64		%				2.28		%				0.84		%				—		%				—		%				—		%

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

The service related component of pension and other postretirement benefit costs is included in Operating profit. The non-service related components (interest cost, expected return on assets, amortization of transition and prior service costs and credits and amortization of actuarial gains and losses) are included in the line item “Non-service related postretirement costs,” which is below Operating profit.

The Company made no voluntary contributions in 2024, 2023 and 2022.

Expected Contributions and Benefit Payments

At present, the Company does not expect to make any voluntary contributions to its U.S. postretirement plans for the year ending December 31, 2025. Actual funding may differ from current estimates depending on the variability of the market value of the assets, changes in the benefit obligations and other market or regulatory conditions.

Benefit payments expected to be paid from the Company’s assets to participants in unfunded plans are estimated to be approximately $95 for the year ending December 31, 2025.

Total benefit payments expected to be paid to participants in both funded and unfunded plans are estimated as follows:

						Pension Plans
Years Ended December 31,						United States						International						Other Retiree Benefit Plans						Total
2025						$	377					$	42					$	52					471
2026						143						41						54						238
2027						143						43						55						241
2028						142						45						55						242
2029						141						46						55						242
2030-2034						653						247						274						1,174

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

10. Income Taxes

The components of Income before income taxes are as follows for the years ended December 31:

						2024						2023						2022
United States						$	1,084					$	692					$	1,169
International						2,872						2,700						1,491
Total Income before income taxes						$	3,956					$	3,392					$	2,660

The Provision for income taxes consists of the following for the years ended December 31:

						2024						2023						2022
United States						$	188					$	72					$	199
International						719						865						494
Total Provision for income taxes						$	907					$	937					$	693

Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows:

						2024						2023						2022
Goodwill and intangible assets						$	3					$	1					$	106
Property, plant and equipment						12						(13)						2
Pension and other retiree benefits						(6)						68						(1)
Stock-based compensation						(14)						2						(3)
Right-of-use assets/lease liabilities						2						1						(5)
Tax credits and tax loss carryforwards, net of valuation allowance						37						29						8
Deferred withholding tax						(14)						7						8
Research and Experimentation Capitalization						21						29						58
Other, net						(8)						11						(10)
Total deferred tax benefit (provision)						$	33					$	135					$	163

The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows:

						2024						2023						2022
Percentage of Income before income taxes
Tax at United States statutory rate						21.0		%				21.0		%				21.0		%
State income taxes, net of federal benefit						0.5						(0.1)						0.8
Earnings taxed at other than United States statutory rate						4.1						5.4						5.4
Non-deductible goodwill impairment charges						—						—						1.9
Foreign-derived intangible income benefit						(2.6)						(2.4)						(2.6)
Foreign tax matter						—						3.7						—
Other, net						(0.1)						—						(0.4)
Effective tax rate						22.9		%				27.6		%				26.1		%

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

The components of deferred tax assets (liabilities) are as follows at December 31:

						2024						2023
Deferred tax liabilities:
Goodwill and intangible assets						$	(389)					$	(412)
Property, plant and equipment						(397)						(420)
Right-of-use assets						(126)						(126)
Deferred withholding tax						(110)						(96)
Other						(130)						(34)
Total deferred tax liabilities						(1,152)						(1,088)
Deferred tax assets:
Pension and other retiree benefits						272						295
Tax credits and tax loss carryforwards						430						356
Lease liabilities						137						134
Accrued liabilities						223						221
Stock-based compensation						61						75
Research and Experimentation Capitalization						108						87
Other						101						60
Total deferred tax assets						1,332						1,228
Valuation Allowance						$	(328)					$	(287)
Net deferred tax assets						$	1,004					$	941
Net deferred income taxes						$	(148)					$	(147)

The changes in valuation allowance for deferred tax assets are as follows:

			2024						2023						2022
Balance, January 1			$	287					$	129					$	120
Additions
Charged to costs and expenses			56						158						14
Deductions			15						—						5
Balance, December 31			$	328					$	287					$	129

As of December 31, 2024, the Company had net operating losses (“NOLs”) and capital loss carryforwards of $37. Of this amount, capital loss and NOL carryforwards of $6 will begin to expire in 2025 and NOLs of $13 can be carried forward indefinitely. The Company believes that it will be able to utilize these capital loss and NOL carryforwards. There is an additional NOL of $18 which has a full valuation allowance.

As of December 31, 2024, the Company has $393 of tax credits, of which $66 will begin to expire in 2030 and $17 can be carried forward indefinitely. The Company believes that it will be able to utilize these tax credits. The remaining credits of $310 have a full valuation allowance.

Applicable U.S. income and foreign withholding taxes have been provided on substantially all of the Company’s accumulated earnings of foreign subsidiaries.

Net tax expense of $55, net tax benefit of $19 and net tax expense of $164 were recorded directly through equity in 2024, 2023 and 2022 respectively. The net tax expense or benefit in each year predominantly includes current and future tax impacts related to benefit plans and the impact of currency translation adjustments.

The Company uses a comprehensive model to recognize, measure, present and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on an income tax return.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Unrecognized tax benefits activity for the years ended December 31, 2024, 2023 and 2022 is summarized below:

						2024						2023						2022
Unrecognized tax benefits:
Balance, January 1						$	314					$	298					$	245
Increases as a result of tax positions taken during the current year						37						73						32
Decreases of tax positions taken during prior years						(53)						(61)						(21)
Increases of tax positions taken during prior years						10						6						46
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations						(3)						(2)						(2)
Effect of foreign currency rate movements						(9)						—						(2)
Balance, December 31						$	296					$	314					$	298

If all of the unrecognized tax benefits for 2024 above were recognized, approximately $286 would impact the effective tax rate. It is reasonably possible that the amount of unrecognized benefits with respect to our uncertain tax positions could change in the next twelve months and such change may or may not be material.

The Company recognized expenses of approximately $22, $10 and $8 for interest and penalties related to the above unrecognized tax benefits within income tax expense in 2024, 2023 and 2022, respectively. The Company had accrued interest and penalties of approximately $68, $45 and $40 as of December 31, 2024, 2023 and 2022, respectively.

In the third quarter of 2023, the Internal Revenue Service (the “IRS”) issued a notice giving taxpayers temporary relief from the effects of certain U.S. tax regulations that were issued in December 2021, which place greater restrictions on foreign taxes that are creditable against U.S. taxes on foreign-source income. This notice allowed taxpayers to defer the application of these new regulations through the end of 2023. In December 2023, the IRS issued further guidance modifying this temporary relief period to the date that a notice or other guidance withdrawing or modifying the temporary relief is issued. The Company will recognize the impact, if any, in the period in which the temporary relief is withdrawn or modified.

During the quarter ended June 30, 2023, the Company reassessed with its 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 the Company 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. The tax liability was paid in the quarter ended September 30, 2023.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted, which among other things, implements a 15% minimum tax on book income of certain large corporations effective for years beginning after December 31, 2022. Based on the Company’s analysis, as well as guidance published by the IRS, the IRA, and in particular the 15% minimum tax, did not have an impact on the Company’s Consolidated Financial Statements. Subsequent to the aforementioned guidance published by the IRS, on September 12, 2024, the U.S. Treasury Department and IRS released proposed regulations relating to this 15% minimum tax. Based on the Company’s analysis, these proposed regulations, if finalized in their current form, are not expected to have an impact on the Company’s Consolidated Financial Statements. However, the Company will continue to evaluate any additional guidance and clarification that becomes available.

Additionally, on December 15, 2022, the 27 member states of the European Union (“EU”) reached an agreement on a minimum level of taxation for certain large corporations to pay a minimum corporate tax rate of 15% in every jurisdiction in which they operate. This agreement, which is known as the Minimum Tax Directive (part of the “Pillar II Model Rules”), was supposed to be transposed into the laws of all EU member states by December 31, 2023. Most member states complied, while some were granted extensions of time. In addition, many other jurisdictions outside the EU have implemented a similar minimum tax regime consistent with the policy of the Pillar II Model Rules. Detailed regulations of these minimum tax regimes are still being considered in certain countries and, in some cases, enactment and timing is still

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

uncertain. Based on current legislation and available guidance, apart from a significant additional compliance burden, Pillar II did not have a material impact as of December 31, 2024 and the Company does not believe it will have a material impact on its Consolidated Financial Statements. However, as these rules and related regulations are revised and implemented, the Company will evaluate the impact, if any, on its Consolidated Financial Statements.

The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. All U.S. federal income tax returns through December 31, 2013 have been audited by the IRS and there are limited matters which the Company plans to appeal for years 2010 through 2013. One such matter relates to the IRS assessment of taxes on the Company by imputing income on certain activities within one of our international operations, which is also under audit for the years 2014 through 2018. There were U.S. Tax Court rulings during 2023 in favor of the IRS against unrelated third parties on similar matters. Despite the U.S. Tax Court rulings, the Company continues to believe that the tax assessment against the Company is without merit. While there can be no assurances, the Company believes this matter will ultimately be decided in favor of the Company. The amount of tax plus interest for the years 2010 through 2018 is estimated to be approximately $153, which is not included in the Company’s uncertain tax positions. In May 2024, the IRS initiated an audit for the years 2019 through 2021.

The Company has made an accounting policy election to treat Global Intangible Low-Taxed Income taxes as a current period expense rather than including these amounts in the measurement of deferred taxes.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

11. Earnings Per Share

For the years ended December 31, 2024, 2023 and 2022, earnings per share were as follows:

			2024																		2023																		2022
			Net income attributable to Colgate-Palmolive Company						Shares (millions)						Per Share						Net income attributable to Colgate-Palmolive Company						Shares (millions)						Per Share						Net income attributable to Colgate-Palmolive Company						Shares (millions)						Per Share
Basic EPS			$	2,889					819.1						$	3.53					$	2,300					827.4						$	2.78					$	1,785					836.4						$	2.13
Stock options and restricted stock units									4.1																		1.8																		2.4
Diluted EPS			$	2,889					823.2						$	3.51					$	2,300					829.2						$	2.77					$	1,785					838.8						$	2.13

Basic earnings per common share is computed by dividing net income available for common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per common share is computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding stock options and restricted stock units.

For the years ended December 31, 2024, 2023 and 2022, the average number of stock options that were anti-dilutive and not included in diluted earnings per share calculations were 295,968, 13,719,286 and 5,236,371, respectively. For the years ended December 31, 2024, 2023 and 2022, the average number of restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 100,191, 1,183 and 155,118, respectively.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

12. Commitments and Contingencies

As of December 31, 2024, the Company has various contractual commitments for future multi-year purchases of raw, packaging and other materials and services totaling approximately $568.

As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, pension, data privacy and security, environmental and tax matters and consumer class actions. In addition, management proactively reviews and monitors the Company’s exposure to, and the impact of, environmental matters. The Company is party to various environmental matters and, as such, may be responsible for all or a portion of the cleanup, restoration and post-closure monitoring of several sites.

The Company establishes accruals for loss contingencies when it has determined that a loss is probable and that the amount of loss, or range of loss, can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances.

The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. For those matters disclosed below for which the amount of any potential losses can be reasonably estimated, the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $250 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate range may not represent the ultimate loss to the Company. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above.

Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more matters could be material to the Company’s results of operations or cash flows for any particular quarter or year.

Brazilian Matters

There are certain tax and civil proceedings outstanding, as described below, related to the Company’s 1995 acquisition of the Kolynos oral care business from Wyeth (the “Seller”).

The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, penalties and any court-mandated fees, at the current exchange rate, are approximately $93. This amount includes additional assessments received from the Brazilian internal revenue authority in April 2016 relating to net operating loss carryforwards used by the Company’s Brazilian subsidiary to offset taxable income that had also been deducted from the authority’s original assessments. The Company has been disputing the disallowances by appealing the assessments since October 2001.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

In each of September 2015, February 2017, September 2018, April 2019 and August 2020, the Company lost an administrative appeal and subsequently challenged these assessments in the Brazilian federal courts. Currently, there are three lawsuits pending in the Lower Federal Court and two cases have progressed to the Federal Court of Appeals. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that it has strong legal grounds to contest the disallowances and that the Company should ultimately prevail. The Company is challenging these disallowances vigorously. In November 2023, based upon changes in Brazilian tax law, the Company filed petitions in three of the actions requesting that the penalty portion of the claim be removed. The Brazilian tax authority agreed with the Company's position and in August 2024 reduced its claim in two of those actions and in October 2024 reduced its claim in the third.

In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that it has strong legal grounds to contest the action and that the Company should ultimately prevail. The Company is challenging this action vigorously.

In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest, penalties and any court-mandated fees of approximately $47, at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company had been disputing the assessment within the internal revenue authority’s administrative appeals process. However, in November 2015, the Superior Chamber of Administrative Tax Appeals denied the Company’s final administrative appeal, and the Company has filed a lawsuit in the Brazilian federal court. In the event the Company is unsuccessful in this lawsuit, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that it has strong legal grounds to contest the tax assessment and that the Company should ultimately prevail. The Company is challenging this assessment vigorously. In addition, in April 2024, based upon changes in Brazilian tax law, the Company filed a petition in this matter requesting that the penalty portion of the claim be removed. The Brazilian tax authority has not yet responded to that petition.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Talcum Powder Matters

The Company has been named as a defendant in civil actions alleging that certain of its talcum powder products were contaminated with asbestos and/or caused mesothelioma and other cancers. Many of these actions involve a number of co-defendants from a variety of different industries, including suppliers of asbestos and manufacturers of products that, unlike the Company’s products, were designed to contain asbestos.

As of December 31, 2024, there were 309 individual cases pending against the Company in state and federal courts throughout the United States, as compared to 279 cases as of December 31, 2023. During the year ended December 31, 2024, 142 new cases were filed and 111 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. The value of the settlements in the periods presented was not material, either individually or in the aggregate, to such periods’ 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.

A significant portion of the Company’s costs incurred in defending and resolving these claims has been, and the Company believes that a portion of the costs will continue to be, covered by insurance policies issued by several primary, excess and umbrella insurance carriers, subject to deductibles, exclusions, retentions, policy limits and insurance carrier insolvencies.

While the Company and its legal counsel believe that the Company has strong legal grounds to contest these cases and intends to challenge them vigorously, there can be no assurances regarding the ultimate resolution of these matters.

ERISA Matter

In June 2016, a lawsuit was filed in the United States District Court for the Southern District of New York (the “District Court”) against the Retirement Plan, the Company and certain individuals (the “Company Defendants”) claiming that residual annuity payments associated with a 2005 residual annuity amendment to the Retirement Plan were improperly calculated for certain Retirement Plan participants in violation of ERISA. The relief sought included recalculation of benefits, pre- and post-judgment interest and attorneys’ fees. This action was certified as a class action in July 2017. In July 2020, the District Court dismissed certain claims, and in August 2020 granted the plaintiffs’ motion for summary judgment on the remaining claims. In September 2020, the Company appealed to the Second Circuit. In March 2023, the Second Circuit affirmed the grant of summary judgment to the plaintiffs.

In light of the Second Circuit decision, the Company recorded a charge to earnings of $267 in the quarter ended March 31, 2023, which is comprised of the recalculation of benefits and interest. Possible additional charges associated with this matter are expected to be immaterial and, where estimable, are reflected in the range of reasonably possible losses disclosed above. The decision resulted in an increase in the obligations of the Retirement Plan, which based on the current funded status of the Retirement Plan and depending on further developments in the litigation, may require a cash contribution by the Company in 2025. In June 2023, the Company filed a petition for certiorari to the United States Supreme Court requesting permission for an appeal to that court and that petition was denied in October 2023. Also, in June 2023, the plaintiffs filed a motion to enter a revised final judgment in the District Court to address certain unresolved calculation issues, which the Company opposed. In March 2024, the District Court granted the plaintiffs’ motion and found for the plaintiffs on those calculation issues. The Company has appealed that decision to the Second Circuit.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

13. Segment Information

The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition.

The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.

In connection with management changes, the Company realigned the reporting structure of its 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 the 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.

The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes. The Chairman of the Board, President and Chief Executive Officer has been determined to be the Company’s Chief Operating Decision Maker who uses Operating Profit to assess performance and to allocate resources for each of the reportable operating segments in the budgeting and forecasting process. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and therefore such information has not been presented.

The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments.

Approximately two-thirds of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). Oral, Personal and Home Care sales to Walmart, Inc. and its affiliates represent approximately 11% of the Company’s Net sales in each of the years 2024, 2023 and 2022. No other customer represented more than 10% of Net sales in any period presented.

In 2024, Corporate Operating profit included charges resulting from the 2022 Global Productivity Initiative of $85. In 2023, Corporate Operating profit included charges resulting from the 2022 Global Productivity Initiative of $27 and product recall costs of $25. In 2022, Corporate Operating profit included goodwill and intangible assets impairment charges of $721, charges resulting from the 2022 Global Productivity Initiative of $95, a gain on the sale of land in Asia Pacific of $47 and acquisition-related costs of $19.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

			2024
			Net sales			Cost of Sales			Selling, general and administrative expenses			Other (income) expense, net (3)			Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America(1)			$	4,113		$	1,571		$	1,668		$	36		$	839
Latin America			4,782			1,933			1,328			(5)			1,526
Europe			2,770			1,050			1,031			31			658
Asia Pacific			2,858			1,078			997			(30)			812
Africa/Eurasia			1,095			432			395			16			253
Total Oral, Personal and Home Care			15,618												4,088
Pet Nutrition(2)			4,483			1,869			1,641			8			965
Reconciliation with Total Company Operating Profit
Corporate															(784)
Total			$	20,101											$	4,268

Note: Table may not sum due to rounding.

(1) Net sales in the U.S. for Oral, Personal and Home Care were $3,640 in 2024.

(2) Net sales in the U.S. for Pet Nutrition were $3,059 in 2024.

(3) Refer to Note 16, Supplemental Income Statement for information related to Other (income) expense, net.

			2023
			Net sales			Cost of Sales			Selling, general and administrative expenses			Other (income) expense, net (3)			Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America(1)			$	4,091		$	1,588		$	1,594		$	37		$	871
Latin America			4,640			1,977			1,241			5			1,417
Europe			2,571			1,069			899			31			573
Asia Pacific			2,782			1,108			925			(18)			767
Africa/Eurasia			1,083			442			377			9			254
Total Oral, Personal and Home Care			15,167												3,882
Pet Nutrition(2)			4,290			1,964			1,493			26			806
Reconciliation with Total Company Operating Profit
Corporate															$	(704)
Total			$	19,457											$	3,984

Note: Table may not sum due to rounding.

(1) Net sales in the U.S. for Oral, Personal and Home Care were $3,625 in 2023.

(2) Net sales in the U.S. for Pet Nutrition were $2,918 in 2023.

(3) Refer to Note 16, Supplemental Income Statement for information related to Other (income) expense, net.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

			2022
			Net sales			Cost of Sales			Selling, general and administrative expenses			Other (income) expense, net (3)			Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America(1)			$	4,002		$	1,649		$	1,567		$	46		$	741
Latin America			3,982			1,885			1,059			(71)			1,108
Europe			2,362			1,023			778			28			534
Asia Pacific			2,826			1,160			954			(24)			737
Africa/Eurasia			1,082			447			389			18			228
Total Oral, Personal and Home Care			14,254												3,348
Pet Nutrition(2)			3,713			1,569			1,287			7			850
Reconciliation with Total Company Operating Profit
Corporate															$	(1,305)
Total			$	17,967											$	2,893

Note: Table may not sum due to rounding.

(1) Net sales in the U.S. for Oral, Personal and Home Care were $3,511 in 2022.

(2) Net sales in the U.S. for Pet Nutrition were $2,432 in 2022

(3) Refer to Note 16, Supplemental Income Statement for information related to Other (income) expense, net.

						2024						2023						2022
Capital expenditures
Oral, Personal and Home Care
North America						$	52					$	46					$	66
Latin America						126						146						121
Europe						63						44						31
Asia Pacific						64						65						60
Africa/Eurasia						12						10						30
Total Oral, Personal and Home Care						317						311						308
Pet Nutrition						143						301						297
Corporate						101						93						91
Total Capital expenditures						$	561					$	705					$	696

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

						2024						2023						2022
Depreciation and amortization
Oral, Personal and Home Care
North America						$	124					$	116					$	128
Latin America						100						98						93
Europe						65						65						68
Asia Pacific						81						84						89
Africa/Eurasia						8						9						9
Total Oral, Personal and Home Care						378						372						387
Pet Nutrition						132						101						65
Corporate						95						94						93
Total Depreciation and amortization						$	605					$	567					$	545

						2024						2023
Long-lived assets**(1)**
United States						$	2,728					$	2,733
International						2,223						2,340
Total Long-lived assets						$	4,951					$	5,073

(1) Long-lived assets include Property, plant and equipment, net and lease right-of-use assets.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

14. Leases

The Company enters into leases for land, office space, warehouses and equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of December 31, 2024 and 2023.

As of December 31, 2024 and 2023, the Company’s right-of use assets and liabilities for operating leases were as follows:

						2024						2023
Other assets						$	529					$	491
Other accruals						107						95
Other liabilities						456						420
Total operating lease liabilities						$	563					$	515

Lease liabilities for operating leases as of December 31, 2024 were as follows:

2025			$	126
2026			108
2027			101
2028			80
2029			58
Thereafter			182
Total lease commitments			$	655
Less: Interest			(92)
Present value of lease liabilities			$	563

The components of the Company’s operating lease cost for the twelve months ended December 31, 2024 and 2023 were as follows:

						2024						2023
Operating lease cost						$	144					$	136
Short-term lease cost						3						3
Variable lease cost						19						20
Sublease Income						(2)						(2)
Total lease cost						$	164					$	157

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and is not reflected on the Company’s Consolidated Balance Sheets. Variable lease costs are comprised of costs, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance, that are not included in the lease liability and are recognized in the period in which they are incurred.

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Supplemental cash flow information related to operating leases for the twelve months ended December 31, 2024 and 2023 was as follows:

▪Payments against amounts included in the measurement of lease liabilities: $132 and $171, respectively

▪Lease assets obtained in exchange for lease liabilities: $141 and $139, respectively.

As of December 31, 2024 and 2023, the weighted-average remaining lease term for operating leases was 7 and 8 years, respectively, and the weighted-average discount rate for operating leases was 4.4% and 4.5%, respectively.

There were no material operating leases that the Company had entered into or that were yet to commence as of December 31, 2024.

15. Supplier Finance Program

The Company has agreements to provide supplier finance programs which facilitate participating suppliers' ability to finance payment obligations of the Company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, elect to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under these arrangements. The outstanding payment obligations under the Company’s supplier finance programs are included in Accounts Payable in the Consolidated Balance Sheets and were not material as of December 31, 2024 or 2023.

16. Supplemental Income Statement Information

Other (income) expense, net						2024						2023						2022
Amortization of intangible assets						$	75					$	72					$	80
Equity income						(22)						(17)						(12)
2022 Global Productivity Initiative						59						24						90
Product recall costs						—						25						—
Losses (gains) from marketable securities and other assets						6						11						(22)
Indirect tax payments (refunds)						27						18						(14)
Gain on the sale of land in Asia Pacific						—						—						(47)
Acquisition-related costs						—						—						19
Other, net						19						58						(25)
Total Other (income) expense, net						$	164					$	191					$	69

						2024						2023						2022
Research and development						$	355					$	343					$	320
Advertising						$	2,720					$	2,371					$	1,997

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

17. Supplemental Balance Sheet Information

Inventories by major class are as follows at December 31:

Inventories						2024						2023
Raw materials and supplies						$	631					$	606
Work-in-process						46						46
Finished goods						1,431						1,411
Total Inventories, net						$	2,108					$	2,063
Non-current inventory, net						(121)						(129)
Current Inventories, net						$	1,987					$	1,934

Inventories valued under LIFO amounted to $453 and $471 at December 31, 2024 and 2023, respectively. The excess of current cost over LIFO cost at the end of each year was $105 and $120, respectively. The liquidations of LIFO inventory quantities had no material effect on income in 2024, 2023 and 2022. Inventory classified as non-current at December 31, 2024 was recorded on the Consolidated Balance Sheets as “Other assets.”

Property, plant and equipment, net						2024						2023
Land						$	226					$	227
Buildings						2,056						2,047
Manufacturing machinery and equipment						6,265						6,365
Other equipment						1,580						1,647
						10,127						10,286
Accumulated depreciation						(5,705)						(5,704)
Total Property, plant and equipment, net						$	4,422					$	4,582

Other current assets						2024						2023
Marketable securities						$	160					$	179
Prepaids						520						595
Derivatives						33						19
Total Other current assets						$	713					$	793

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

Other accruals						2024						2023
Accrued advertising and consumer and trade promotions						$	912					$	882
Accrued payroll and employee benefits						437						403
Accrued taxes other than income taxes						162						167
Restructuring accrual						15						11
Pension and other retiree benefits						93						96
Lease liabilities due in one year						107						95
Accrued interest						72						78
Derivatives						23						26
Dividend payable						408						—
Other						662						619
Total Other accruals						$	2,891					$	2,377

Other liabilities						2024						2023
Pension and other retiree benefits						$	1,306					$	1,390
Long-term lease liabilities						456						420
Restructuring accrual						29						—
Other						320						305
Total Other liabilities						$	2,111					$	2,115

COLGATE-PALMOLIVE COMPANY

Notes to Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

18. Supplemental Other Comprehensive Income (Loss) Information

Other comprehensive income (loss) components attributable to Colgate-Palmolive Company before tax and net of tax during the years ended December 31 were as follows:

						2024						2023						2022
Cumulative translation adjustments:
Cumulative translation adjustments, pre-tax						$	(298)					$	127					$	(113)
Tax amounts						(37)						13						(29)
Cumulative translation adjustments, net of tax						(335)						140						(142)
Pension and other benefits:
Net actuarial gain (loss), prior service costs and settlements during the period						31						(49)						466
Amortization of net actuarial loss, transition and prior service costs(1)						28						30						62
Retirement Plan and other retiree benefit adjustments, pre-tax						59						(19)						528
Tax amounts						(16)						3						(115)
Retirement Plan and other retiree benefit adjustments, net of tax						43						(16)						413
Cash flow hedges:
Gains (losses) on cash flow hedges, pre-tax						10						(10)						80
Tax amounts						(2)						3						(20)
Gains (losses) on cash flow hedges, net of tax						8						(7)						60
Total Other comprehensive income (loss), net of tax						$	(284)					$	117					$	331

(1)These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details.

There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) is comprised of cumulative foreign currency translation gains and losses, unrecognized pension and other retiree benefit costs and unrealized gains and losses from derivative instruments designated as cash flow hedges. At December 31, 2024 and 2023, Accumulated other comprehensive income (loss) consisted primarily of aftertax unrecognized pension and other retiree benefit costs of $605 and $647, respectively, and aftertax cumulative foreign currency translation losses of $3,687 and $3,351, respectively. Foreign currency translation adjustments in 2024 primarily reflect losses from the Euro, Brazilian Real and Mexican Peso. Foreign currency translation adjustments in 2023 primarily reflect gains from the Euro, Mexican Peso and Brazilian Real.

COLGATE-PALMOLIVE COMPANY

Market Information

The Company’s common stock is listed on the New York Stock Exchange, and its trading symbol is CL.

Stock Price Performance Graphs

The following graphs compare cumulative total shareholder returns on Colgate-Palmolive Company common stock against the S&P Composite-500 Stock Index and a peer company index for the twenty-year, ten-year and five-year periods each ended December 31, 2024. The peer company index is comprised of consumer products companies that have both domestic and international businesses. For 2024, the peer company index consisted of Church & Dwight Co., Inc., The Clorox Company, The Coca-Cola Company, The Estee Lauder Companies, Inc., General Mills, Inc., Haleon plc, Kellanova (formerly known as Kellogg Company), Kenvue Inc. (from and after its spin-off from Johnson & Johnson), Kimberly-Clark Corporation, The Kraft Heinz Company, Mondelez International, Inc., PepsiCo, Inc., The Procter & Gamble Company, Reckitt Benckiser Group plc and Unilever PLC.

These performance graphs do not constitute soliciting material, are not deemed filed with the SEC and are not incorporated by reference in any of the Company’s filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Annual Report on Form 10-K and irrespective of any general incorporation language in any such filing, except to the extent the Company specifically incorporates these performance graphs by reference therein.