Rendering

Component: (Network and Table)
Network
2310301 - Disclosure - Retirement Plans and Other Retiree Benefits (Tables)
(http://www.colgate.com/role/RetirementPlansAndOtherRetireeBenefitsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000021665 (http://www.sec.gov/CIK)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Schedule of Allocation of Plan Assets
The target asset allocation for the Company’s defined benefit plans is as follows:
  
 
United States
 
International
Asset Category
 

 

Equity securities
 
27
%
 
41
%
Fixed income securities
 
53
%
 
40
%
Real estate and other investments
 
20
%
 
19
%
Total
 
100
%
 
100
%

At December 31, 2016 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
 
Other Retiree
Benefit Plans
 
 
  
 
 
 
 
 
 
Cash and cash equivalents
 
Level 1
 
$
27

 
$
13

 
$
—

U.S. common stocks
 
Level 1
 
127

 
3

 
—

International common stocks
 
Level 1
 
—

 
3

 
—

Pooled funds(1)
 
Level 1
 
134

 
84

 
—

Fixed income securities(2)
 
Level 2
 
767

 
22

 
—

Guaranteed investment contracts(3)
 
Level 2
 
1

 
49

 
—

 
 
  
 
1,056

 
174

 
—

Investments valued using NAV per share(4)
 
  
 


 


 


Domestic, developed and emerging markets equity funds
 
  
 
323

 
155

 
—

Fixed income funds(5)
 
  
 
118

 
155

 
—

Hedge funds(6)
 
  
 
96

 
3

 
—

Multi-Asset funds(7)
 
  
 
52

 
3


—

Real estate funds(8)
 
 
 
43

 
19

 
—

 
 
  
 
632

 
335

 
—

 
 
 
 
 
 
 
 
 
Other assets and liabilities, net(9)
 
 
 
(42
)
 
—

 
—

Total Investments
 
 
 
$
1,646

 
$
509

 
$
—

 
 
 
 
 
 
 
 
 

At December 31, 2015 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
 
Other Retiree
Benefit Plans
 
 
  
 
 
 
 
 
 
Cash and cash equivalents
 
Level 1
 
$
16

 
$
13

 
$
—

U.S. common stocks
 
Level 1
 
126

 
3

 
1

Pooled funds(1)
 
Level 1
 
112

 
76

 
1

Fixed income securities(2)
 
Level 2
 
718

 
24

 
6

Guaranteed investment contracts(3)
 
Level 2
 
1

 
52

 
—

 
 
  
 
973

 
168

 
8

Investments valued using NAV per share(4)
 
  
 


 


 


Domestic, developed and emerging markets equity funds
 
  
 
309

 
158

 
3

Fixed income funds(5)
 
  
 
123

 
165

 
1

Hedge funds(6)
 
  
 
131

 
6

 
1

Multi-Asset funds(7)
 
  
 
49

 
4


—

Real estate funds(8)
 
 
 
39

 
19

 
1

 
 
 
 
651

 
352

 
6

 
 
 
 
 
 
 
 
 
Other assets and liabilities, net(9)
 
 
 
—

 
—

 
—

Total Investments
 
  
 
$
1,624

 
$
520

 
$
14

_______
(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, 2016 and 2015, approximately 50% 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) 
In accordance with ASU 2015-07, 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 Company has applied ASU 2015-07 retrospectively for the year ended December 31, 2016. 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 dividend receivables.
  
Defined benefit plans disclosures
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:
  
 
Pension Plans
 
Other Retiree Benefit Plans
 
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
  
 
United States
 
International
 
 
 
 
Change in Benefit Obligations
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligations at beginning of year
 
$
2,201

 
$
2,406

 
$
802

 
$
916

 
$
862

 
$
1,011

Service cost
 
1

 
2

 
16

 
20

 
13

 
14

Interest cost
 
105

 
100

 
25


28

 
43


44

Participants’ contributions
 
—

 
—

 
2

 
2

 
—

 
—

Acquisitions/plan amendments
 
—

 
—

 
1

 
3

 
—

 
—

Actuarial loss (gain)
 
129

 
(189
)
 
76

 
(3
)
 
39

 
(154
)
Foreign exchange impact
 
—

 
—

 
(47
)
 
(75
)
 
1

 
(14
)
Termination benefits (1)
 
3

 
16

 
—

 
—

 
1

 
1

Curtailments and settlements
 
—

 
—

 
(37
)
 
(16
)
 
—

 
—

Benefit payments
 
(141
)
 
(134
)
 
(36
)
 
(38
)
 
(36
)
 
(40
)
Other (2)
 
—

 
—

 
(2
)
 
(35
)
 
—

 
—

Benefit obligations at end of year
 
$
2,298

 
$
2,201

 
$
800

 
$
802

 
$
923

 
$
862

Change in Plan Assets
 
 
 
 
 
 
 
 
 
 

 
 

Fair value of plan assets at beginning of year
 
$
1,624

 
$
1,771

 
$
520

 
$
552

 
$
14

 
$
41

Actual return on plan assets
 
88

 
(33
)
 
46

 
20

 
1

 
—

Company contributions
 
75

 
20

 
54

 
35

 
21

 
13

Participants’ contributions
 
—

 
—

 
2

 
2

 
—

 
—

Foreign exchange impact
 
—

 
—

 
(43
)
 
(35
)
 
—

 
—

Settlements and acquisitions
 
—

 
—

 
(33
)
 
(14
)
 
—

 
—

Benefit payments
 
(141
)
 
(134
)
 
(36
)
 
(38
)
 
(36
)
 
(40
)
Other
 
—

 
—

 
(1
)
 
(2
)
 
—

 
—

Fair value of plan assets at end of year
 
$
1,646

 
$
1,624

 
$
509

 
$
520

 
$
—

 
$
14

Funded Status
 
 
 
 
 
 
 
 
 
 

 
 

Benefit obligations at end of year
 
$
2,298

 
$
2,201

 
$
800

 
$
802

 
$
923

 
$
862

Fair value of plan assets at end of year
 
1,646

 
1,624

 
509

 
520

 
—

 
14

Net amount recognized
 
$
(652
)
 
$
(577
)
 
$
(291
)
 
$
(282
)
 
$
(923
)
 
$
(848
)
Amounts Recognized in Balance Sheet
 
 
 
 
 
 

 
 

 
 

 
 

Noncurrent assets
 
$
—

 
$
—

 
$
8

 
$
17

 
$
—

 
$
—

Current liabilities
 
(24
)
 
(21
)
 
(12
)
 
(12
)
 
(44
)
 
(41
)
Noncurrent liabilities
 
(628
)
 
(556
)
 
(287
)
 
(287
)
 
(879
)
 
(807
)
Net amount recognized
 
$
(652
)
 
$
(577
)
 
$
(291
)
 
$
(282
)
 
$
(923
)
 
$
(848
)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 

 
 

 
 

 
 

Actuarial loss
 
$
962

 
$
852

 
$
254

 
$
219

 
$
330

 
$
305

Transition/prior service cost
 
2

 
2

 
5

 
7

 
(2
)
 
(2
)
  
 
$
964

 
$
854

 
$
259

 
$
226

 
$
328

 
$
303

Accumulated benefit obligation
 
$
2,230

 
$
2,100

 
$
739

 
$
739

 
$
—

 
$
—

  
 
Pension Plans
 
Other Retiree Benefit Plans
  
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
  
 
United States
 
International
 
 
 
 
Weighted-Average Assumptions Used to Determine Benefit Obligations
 
 
 
 
 
 
 
 
 
 

 
 
Discount rate
 
4.27
%
 
4.93
%
 
2.59
%
 
3.17
%
 
4.41
%
 
4.97
%
Long-term rate of return on plan assets
 
6.80
%
 
6.80
%
 
4.14
%
 
4.62
%
 
6.80
%
 
6.80
%
Long-term rate of compensation increase
 
3.50
%
 
3.50
%
 
2.58
%
 
2.78
%
 
—
%
 
—
%
ESOP growth rate
 
—
%
 
—
%
 
—
%
 
—
%
 
10.00
%
 
10.00
%
Medical cost trend rate of increase
 
—
%
 
—
%
 
—
%
 
—
%
 
6.33
%
 
6.67
%
_________
(1) 
Represents pension and other retiree benefit enhancements incurred in 2016 and 2015 pursuant to the 2012 Restructuring Program.
(2) 
Other in International Pension Plans for 2015 includes a $33 impact related to the deconsolidation of the Company’s Venezuelan operations. See Note 14, Venezuela.
  
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
A 1% change in the assumed medical cost trend rate would have the following approximate effect:
  
 
One percentage point
  
 
Increase
 
Decrease
Accumulated postretirement benefit obligation
 
$
119

 
$
(96
)
Total of service and interest cost components
 
9

 
(7
)
  
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

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:
  
 
Years Ended December 31,
  
 
2016
 
2015
Benefit Obligation Exceeds Fair Value of Plan Assets
 
 
 
 
Projected benefit obligation
 
$
2,973

 
$
2,667

Fair value of plan assets
 
2,024

 
1,792

 
 
 
 
 
Accumulated benefit obligation
 
2,840

 
2,499

Fair value of plan assets
 
2,003

 
1,772


  
Schedule of Net Benefit Costs
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
  
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
  
 
United States
 
International
 
 
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
1

 
$
2

 
$
1

 
$
16

 
$
20

 
$
17

 
$
13

 
$
14

 
$
11

Interest cost
 
105

 
100

 
102

 
25

 
28

 
35

 
43

 
44

 
42

Annual ESOP allocation
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1
)
Expected return on plan assets
 
(109
)
 
(117
)
 
(112
)
 
(23
)
 
(28
)
 
(29
)
 
(1
)
 
(2
)
 
(3
)
Amortization of transition and prior service costs (credits)
 
—

 
—

 
1

 
—

 
2

 
4

 
—

 
—

 
3

Amortization of actuarial loss
 
41

 
44

 
37

 
8

 
11

 
6

 
14

 
25

 
16

Net periodic benefit cost
 
$
38

 
$
29

 
$
29

 
$
26

 
$
33

 
$
33

 
$
69

 
$
81

 
$
68

Other postretirement charges
 
3

 
16

 
5

 
11

 
(1
)
 
(8
)
 
1

 
1

 
—

Total pension cost
 
$
41

 
$
45

 
$
34

 
$
37

 
$
32

 
$
25

 
$
70

 
$
82

 
$
68

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.93
%
 
4.24
%
 
4.96
%

3.17
%
 
3.06
%
 
3.99
%
 
4.97
%
 
4.36
%
 
5.24
%
Long-term rate of return on plan assets
 
6.80
%
 
6.80
%
 
6.80
%
 
4.62
%
 
5.05
%
 
5.50
%
 
6.80
%
 
6.80
%
 
6.80
%
Long-term rate of compensation increase
 
3.50
%
 
3.50
%
 
3.50
%
 
2.78
%
 
2.83
%
 
3.02
%
 
—
%
 
—
%
 
—
%
ESOP growth rate
 
—
%
 
—
%
 
—
%
 
—
%
 
—
%
 
—
%
 
10.00
%
 
10.00
%
 
10.00
%
Medical cost trend rate of increase
 
—
%
 
—
%
 
—
%
 
—
%
 
—
%
 
—
%
 
6.67
%
 
7.00
%
 
7.00
%

  
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The estimated actuarial loss and the estimated transition/prior service cost for defined benefit and other retiree benefit plans that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is as follows:
  
 
Pension Plans
 
Other Retiree Benefit Plans
Net actuarial loss
 
$
57

 
$
17

Net transition and prior service cost
 
—

 
—


  
Schedule of Expected Benefit Payments
Total benefit payments expected to be paid to participants from plan assets, or directly from the Company’s assets to participants in unfunded plans, are as follows:
  
 
Pension Plans
 
 
 
 
Years Ended December 31,
 
United States
 
International
 
Other Retiree Benefit Plans
 
Total
2017
 
$
137

 
$
37

 
$
45

 
$
219

2018
 
137

 
32

 
46

 
215

2019
 
140

 
32

 
46

 
218

2020
 
144

 
34

 
47

 
225

2021
 
150

 
36

 
48

 
234

2022-2026
 
733

 
202

 
256

 
1,191