01—Abstract
Summary
Summary of the 8-K filed September 16, 2013. Cited figures are marked; the original filing is the authoritative source.
This Procter & Gamble (PG) 8-K filing from September 16, 2013, primarily serves as a Regulation FD disclosure to inform investors about significant changes to the company's segment reporting structure, effective July 1, 2013.
The company has reorganized its Global Business Units (GBUs) into four industry-based sectors: Beauty, Health and Grooming, Fabric and Home Care, and Baby, Feminine and Family Care. These sectors will be aggregated into five reportable segments under U.S. GAAP starting in fiscal year 2014. The most critical information for investors in this filing is the presentation of pro forma historical segment earnings and net sales information for various periods leading up to and including the third quarter of fiscal year 2013.
This data allows for a clearer understanding of segment performance under the new structure, particularly highlighting shifts in how Feminine Care (now in Baby, Feminine and Family Care from Health Care) and Pet Care (now in Health Care from Fabric Care and Home Care) are categorized. Investors should note that this filing does not revise the company's previously reported consolidated financial statements but provides supplemental historical data for comparative analysis.
02—Key points
Key Highlights
- Procter & Gamble has implemented a new segment reporting structure, effective July 1, 2013, aligning with four industry-based sectors: Beauty, Health and Grooming, Fabric and Home Care, and Baby, Feminine and Family Care.
- Under U.S. GAAP, these sectors will translate into five reportable segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby, Feminine and Family Care.
- The filing provides pro forma historical segment earnings and net sales data for multiple past quarters and fiscal years (ending September 30, 2011, through June 30, 2013) reflecting the new structure.
- A key change involves the reclassification of Feminine Care from the 'Health Care' segment to the 'Baby, Feminine and Family Care' segment.
- Additionally, Pet Care has been moved from 'Fabric Care and Home Care' to the 'Health Care' segment.
- This 8-K is furnished under Regulation FD and does not restate or revise previously issued consolidated financial statements.
- The new reporting structure will be reflected in the company's financial statements beginning with the Form 10-Q for the quarter ended September 30, 2013.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to disclose changes to Procter & Gamble's segment reporting structure and to provide pro forma historical segment data reflecting these changes. This allows investors to understand the company's historical performance under the new organizational framework.
How has the segment structure changed?
The company has reorganized its Global Business Units into four industry-based sectors, which will be reported as five segments under U.S. GAAP. These are Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby, Feminine and Family Care. Notable reclassifications include Feminine Care moving to Baby, Feminine and Family Care, and Pet Care moving to Health Care.
Will my previous financial analysis of PG be affected?
Yes, the presentation of historical segment data has been updated to reflect the new structure. While consolidated financial statements are not restated, investors should use the pro forma historical segment information provided in this filing for comparative analysis moving forward to accurately assess the performance of each segment under the new reporting lines.
When will these new segment reporting changes become effective in official financial reports?
The changes to the segment reporting structure will be reflected in Procter & Gamble's consolidated financial statements and segment reporting beginning with the Form 10-Q for the fiscal quarter ending September 30, 2013.
04—Continue