01—Abstract
Summary
Summary of the 8-K filed December 22, 2014. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from Procter & Gamble (PG) on December 22, 2014, primarily serves as a Regulation FD disclosure.
The company is restating historical segment and consolidated earnings information to reflect the planned exit from its Batteries business, which will be reported as discontinued operations. This includes reclassifying previously reported impairment charges.
The divestiture of the Duracell business via a split transaction with Berkshire Hathaway is expected in the second half of calendar year 2015, pending regulatory approval. The financial impact of the Batteries business will be excluded from continuing operations and segment results going forward, with its balance sheet positions presented as held for sale starting from the second quarter of fiscal year 2015.
02—Key points
Key Highlights
- Procter & Gamble is reclassifying its Batteries business (including Duracell) as discontinued operations.
- This change will impact historical segment and consolidated earnings reports, with revised data provided for several past periods.
- The Duracell business is being divested via a split transaction with Berkshire Hathaway, expected in the second half of calendar year 2015.
- The Batteries business will be excluded from future continuing operations and segment results.
- Balance sheet positions related to the Batteries business will be presented as 'held for sale' starting in Q2 FY2015.
- This filing provides revised earnings information for specific past quarters and the full fiscal year 2014.
- The company also provides supplemental 'Core EPS' information, excluding certain items like restructuring and legal charges, to offer a view of underlying business trends.
03—Questions
Frequently Asked Questions
Why is P&G restating its historical financial information?
P&G is restating historical segment and consolidated earnings information to properly reflect the planned divestiture of its Batteries business as discontinued operations, in accordance with accounting guidance for the disposal of long-lived assets.
What is happening with the Duracell business?
P&G has announced plans to divest the Duracell business through a split transaction with Berkshire Hathaway. This transaction is expected to be completed in the second half of calendar year 2015, subject to regulatory approvals.
How will this change affect P&G's reported financial statements going forward?
The results of the Batteries business will be presented as discontinued operations, meaning they will be excluded from P&G's continuing operations and segment results. Balance sheet items related to this business will be classified as 'held for sale' starting from the second quarter of fiscal year 2015.
Does this filing change P&G's previously reported consolidated financial statements for any period?
No, this informational 8-K filing does not revise or restate the previously filed Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Shareholders' Equity, or Consolidated Statements of Cash Flows for any period. It only provides revised segment and consolidated earnings information for comparative purposes.
04—Continue