01—Abstract
Summary
Summary of the 8-K filed October 28, 2013. Cited figures are marked; the original filing is the authoritative source.
Procter & Gamble (PG) filed an 8-K on October 27, 2013, to announce significant changes to its Global Business Unit (GBU) structure and, consequently, its reportable business segments, effective July 1, 2013.
The company has reorganized its GBUs into four industry-based sectors, which will be aggregated into five reportable segments under U.S. GAAP: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby, Feminine and Family Care. This restructuring involves specific product category realignments, such as Feminine Care moving to Baby, Feminine and Family Care and Pet Care moving to Health Care. This filing provides revised Management's Discussion and Analysis (MD&A) and consolidated financial statements for the fiscal years ended June 30, 2013, 2012, and 2011, to reflect these new segment disclosures.
Investors should note that these revisions are for segmentation purposes only and do not update the financial information beyond the filing date of the Form 10-K for the fiscal year ended June 30, 2013. For any developments subsequent to that filing, investors are directed to the Company's Form 10-Q for the quarter ended September 30, 2013, and other 8-K filings.
02—Key points
Key Highlights
- Procter & Gamble reorganized its business into four industry-based sectors effective July 1, 2013.
- The company will now report under five distinct segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby, Feminine and Family Care.
- Specific product category movements include Feminine Care shifting to Baby, Feminine and Family Care.
- Pet Care has been moved from Fabric Care and Home Care to the Health Care segment.
- The 8-K provides revised MD&A and financial statements for fiscal years 2011-2013 to reflect the new segment structure.
- These revisions are purely for segment reporting alignment and do not contain updated financial performance for periods after June 30, 2013.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
The primary purpose of this 8-K filing is to inform investors about significant changes to Procter & Gamble's business segment structure and to provide revised financial information and MD&A that aligns with this new structure for historical periods.
How does the new segment structure differ from the previous one?
The company has moved from its previous structure to four industry-based sectors, which will be reported under five distinct segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby, Feminine and Family Care. This involves reclassifying certain product lines, such as Feminine Care and Pet Care, into different segments.
Does this filing include updated financial performance for recent quarters?
No, this filing primarily revises historical segment disclosures for the fiscal years 2011-2013. It explicitly states that the financial information has not been updated for events or developments occurring after the filing of the Form 10-K for the fiscal year ended June 30, 2013. For subsequent financial updates, investors should refer to the Company's Form 10-Q for the quarter ended September 30, 2013.
What is the financial impact of these segment changes?
This filing itself does not detail the financial impact of the segment changes on revenue or profitability. It focuses on the organizational and reporting structure adjustments. The actual financial performance of the new segments would be discussed in future periodic filings (like the 10-Q) and earnings reports.
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