Colgate Palmolive : Three Months Ended December 31, 2020 and 2019

					Table 8
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended December 31, 2020 and 2019
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit		2020			2019
Gross profit, GAAP	$	2,643	$	2,414
Global Growth and Efficiency Program		-			(1)
Acquisition-related costs		-			3
Gross profit, non-GAAP	$	2,643	$	2,416
							Basis Point
Gross Profit Margin		2020			2019		Change
Gross profit margin, GAAP		61.1 %			60.1 %	100
Acquisition-related costs		- %			0.1 %
Gross profit margin, non-GAAP		61.1 %			60.2 %	90
Selling, General and Administrative Expenses		2020			2019
Selling, general and administrative expenses, GAAP	$	1,633	$	1,412
Global Growth and Efficiency Program		-			(18)
Selling, general and administrative expenses, non-GAAP	$	1,633	$	1,394
							Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales		2020			2019		Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP		37.8 %			35.2 %	260
Global Growth and Efficiency Program		- %			(0.5)%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP		37.8 %			34.7 %	310
Other (Income) Expense, Net		2020			2019
Other (income) expense, net, GAAP	$	41	$	71
Global Growth and Efficiency Program		-			(14)
Acquisition-related costs		-			(3)
Value-added tax matter in Brazil		-			30
Other (income) expense, net, non-GAAP	$	41	$	84
Operating Profit (Loss)		2020			2019		% Change
Operating profit (loss), GAAP	$	969	$	931	4 %
Global Growth and Efficiency Program		-			31
Acquisition-related costs		-			6
Value-added tax matter in Brazil		-			(30)
Operating profit, non-GAAP	$	969	$	938	3 %

Basis Point

Operating Profit Margin

Operating profit margin, GAAP Global Growth and Efficiency Program Acquisition-related costs Value-added tax matter in Brazil Operating profit margin, non-GAAP

Non-Service Related Postretirement Costs

2020		2019		Change
22.4 %	23.2 %	(80)
- %	0.8 %
- %	0.1 %
- %		(0.7)%
22.4 %		23.4 %		(100)
2020	2019

Non-service related postretirement costs, GAAP	$	18	$	29
Global Growth and Efficiency Program		-			(3)
Non-service related postretirement costs, non-GAAP	$	18	$	26

As Reported GAAP

Loss on early extinguishment of debt Non-GAAP

Table 8

Continued

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Three Months Ended December 31, 2020 and 2019

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

2020

						Net Income		Net Income
				Provision			Attributable		Effective
						Including			To				Diluted
	Income Before			For			Non-			Colgate-		Income
			Income		controlling			Palmolive		Tax			Earnings
	Income Taxes			Taxes(1)			Interests			Company		Rate(2)			Per Share
$	894	$	202	$	692	$	647	22.6 %	$	0.75
	23			5			18			18		- %			0.02
$	917	$	207	$	710	$	665	22.6 %	$	0.77
							2019

							Net Income		Net Income
					Provision			Attributable		Effective
							Including			To				Diluted
	Income Before				For			Non-			Colgate-		Income
				Income		controlling			Palmolive		Tax			Earnings
	Income Taxes				Taxes(1)			Interests			Company		Rate(2)			Per Share
As Reported GAAP	$	870	$	188	$	682	$	643	21.6 %	$	0.75
Global Growth and Efficiency Program		34			7			27			27		- %			0.03
Acquisition-related costs		6			-			6			6	(0.1)%			0.01
Value-added tax matter in Brazil		(30)			(10)			(20)			(20)	(0.5)%			(0.02)
Swiss income tax reform		-			29			(29)			(29)		3.3 %			(0.04)
Non-GAAP	$	880	$	214	$	666	$	627	24.3 %	$	0.73

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

Notes:

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