01—Abstract
Summary
Summary of the 8-K filed October 15, 2009. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from Procter & Gamble (PG) provides important pro forma historical financial information for the three months ended September 30, 2008.
The "pro forma" data reflects two significant changes that were effective starting in fiscal year 2010: a restructuring of the Beauty GBU (now Beauty and Grooming GBU) and the presentation of the global pharmaceuticals business as discontinued operations following its agreement to be sold to Warner Chilcott. For investors, the key takeaway is the impact of these organizational and operational shifts on reported segment performance and overall company earnings.
The pro forma information allows for a more accurate comparison of financial results as if these changes had been in place earlier. This disclosure helps investors understand the underlying performance of continuing operations and how the company's various business segments are being managed and reported going forward, particularly as it exits its pharmaceuticals business.
02—Key points
Key Highlights
- Procter & Gamble (PG) is providing pro forma historical financial data for Q1 FY2009 (three months ended September 30, 2008) to reflect significant organizational and reporting changes.
- The Beauty GBU has been renamed the Beauty and Grooming GBU, with female blades/razors moving to Beauty and certain male-focused brands (e.g., Old Spice) moving to Grooming.
- The Company's global pharmaceuticals business is now presented as discontinued operations, following an agreement to sell it to Warner Chilcott.
- Pro forma net sales for the three months ended September 30, 2008, were $20,983 million, compared to the as-reported $21,582 million.
- Pro forma earnings from continuing operations before income taxes were $4,327 million, compared to the as-reported $4,566 million.
- The pro forma presentation aims to provide a clearer view of ongoing business performance by isolating the impact of the pharmaceuticals divestiture and segment realignments.
- These changes will be reflected in future financial reporting, starting with the Form 10-Q for the three months ended September 30, 2009.
03—Questions
Frequently Asked Questions
Why is Procter & Gamble filing this 8-K with pro forma information?
This 8-K is filed to disclose pro forma historical financial information for the three months ended September 30, 2008. This is to show investors how the company's results would have looked with the new reporting structure and the pharmaceuticals business classified as discontinued operations, allowing for better comparability going forward.
What specific changes are being reflected in the pro forma data?
Two main changes are reflected: 1) A reorganization within the Beauty GBU, now named the Beauty and Grooming GBU, involving the reallocation of brands between the Beauty and Grooming segments. 2) The presentation of the global pharmaceuticals business as discontinued operations, as it is being sold to Warner Chilcott.
How does the pro forma net sales compare to the reported net sales for the period?
For the three months ended September 30, 2008, the pro forma net sales were $20,983 million, which is lower than the as-reported net sales of $21,582 million. This difference is primarily due to the exclusion of the pharmaceuticals business from continuing operations in the pro forma presentation.
When will these new reporting structures and classifications be fully reflected in SEC filings?
These changes will be reflected in the company's consolidated financial statements and segment reporting beginning in fiscal year 2010, starting with the Form 10-Q filing for the three months ended September 30, 2009.
04—Continue