Skip to content
AnalystLens

PROCTER & GAMBLE Co 8-K Report (Oct 24, 2002)

Reports
Other Events
Filing Date
Filed October 24, 2002
Period End
June 30, 2002
Security
PG
In the record · 2016–202610-K1210-Q328-K226

PG filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 226 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Aug ’19Aug ’19
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed October 24, 2002. Cited figures are marked; the original filing is the authoritative source.

On October 24, 2002, Procter & Gamble filed this Form 8-K under Regulation FD to recast its business segment reporting following two structural changes: the May 31, 2002 spin-off of the Jif and Crisco brands, and the July 1, 2002 transfer of feminine care from Baby, Feminine & Family Care to Beauty Care.

The filing presents fiscal 2002 segment results under both the prior and new structures. The company states the change affects only segment presentation and not consolidated results, which remain at $40.2 billiona in net sales, $6.4 billion in pre-tax earnings and $4.35 billion in net earnings. Full segment detail will come in the next annual filing.

Under the new structure, Beauty Care becomes the largest segment at $10.7 billionb in sales (up from $8.1 billion under the old structure, because feminine care is now included), and Baby & Family Care falls to $9.2 billion. Snacks & Beverages, the renamed Food & Beverage segment, shrinks to $3.2 billion after Jif and Crisco are moved to Corporate. Fabric & Home Care ($11.6 billion) and Health Care ($5.0 billion) are unchanged.

Corporate now carries $436 millionc of net sales and a $1.24 billion pre-tax loss, compared with $1.37 billion under the prior presentation. For investors, the filing is mainly a reclassification. It does not change the consolidated totals, but it does change how growth and margins should be compared across periods.

Beauty Care's new 2002 pre-tax margin is about 22%d, Fabric & Home Care is about 23%, and Baby & Family Care is about 14%. Investors comparing segment performance with earlier years should use the recast figures, since the old segment numbers are no longer comparable.

02—Key points

Key Highlights

  1. The Jif and Crisco brands were spun off on May 31, 2002, and their results now sit in Corporate rather than in a food segment.
  2. Feminine care moved from Baby, Feminine & Family Care to Beauty Care effective July 1, 2002, which takes Beauty Care's FY2002 net sales from $8.1B to $10.7B.
  3. The former Food & Beverage segment is renamed Snacks & Beverages, with FY2002 net sales of $3.2B, down from $3.8B.
  4. Consolidated FY2002 results are unchanged: net sales of $40.2B, pre-tax earnings of $6.4B and net earnings of $4.35B.
  5. Under the new structure, Baby & Family Care reports FY2002 net sales of $9.2B and pre-tax earnings of $1.27B, and Beauty Care reports $10.7B and $2.35B.
  6. Corporate pre-tax loss narrows to $1.24B under the new structure from $1.37B under the prior one, because it now carries the spun-off food brands' results.
  7. The change is required under FASB Statement No. 131, and prior-year figures have been recast so historical comparisons remain consistent.

03—Questions

Frequently Asked Questions

  1. Does this segment realignment change P&G's consolidated financial results?

    No. The company states the change affects only the presentation of segment results. Consolidated FY2002 net sales ($40.2B), pre-tax earnings ($6.4B) and net earnings ($4.35B) are unchanged.

  2. Why did P&G move feminine care into Beauty Care?

    Effective July 1, 2002, the company realigned management of the feminine care business from Baby, Feminine & Family Care to Beauty Care. The segment changes reflect that management realignment.

  3. How are the Jif and Crisco brands treated after the spin-off?

    Jif, Crisco and the commercial shortening and oils businesses are no longer part of a reportable operating segment. Their results are presented within Corporate, and the segment reporting change affects only how these results are shown.

  4. How should investors compare segment performance across periods after this change?

    Investors should use the recast prior-year figures in this filing, since the old segment figures are no longer comparable. Note that the Beauty Care and Baby & Family Care segments changed composition, so their growth rates on the old basis are not meaningful.

  5. When will full segment information be available?

    The company says full segment information will be presented in its next annual filing. This 8-K provides selected interim segment information for reference.

04—Continue

← View all 8-K filings