01—Abstract
Summary
Summary of the 8-K filed October 26, 2015. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from Procter & Gamble (P&G) provides updated financial reporting to reflect the divestiture of several beauty-related businesses to Coty, Inc. The transaction, announced in July 2015 and expected to close in the second half of calendar year 2016, includes P&G's global salon professional hair care and color, retail hair color, cosmetics, and fine fragrance categories, along with select hair styling brands.
These divested businesses will be reported as discontinued operations starting from fiscal year 2015-2016, meaning their results will be excluded from continuing operations and segment performance. The company is reissuing revised selected financial data, Management's Discussion and Analysis (MD&A), and consolidated financial statements for the years ended June 30, 2015, 2014, and 2013.
This revision ensures historical financial data aligns with the new reporting structure of presenting these beauty assets as discontinued operations and assets held for sale as of September 30, 2015. Investors should note that the financial statements and disclosures presented in this 8-K are revised to reflect this accounting change and otherwise speak as of the original filing date of the 2015 10-K, with subsequent developments detailed in other filings.
02—Key points
Key Highlights
- Procter & Gamble (P&G) is divesting significant beauty-related businesses (salon professional hair care/color, retail hair color, cosmetics, fine fragrances) to Coty, Inc.
- The divestiture transaction is expected to be completed in the second half of calendar year 2016, subject to regulatory approvals.
- The divested beauty businesses will be classified and reported as 'discontinued operations' in P&G's financial statements, effective from fiscal year 2015-2016.
- Results from these divested businesses will be excluded from P&G's continuing operations and segment reporting.
- P&G's Consolidated Balance Sheets as of September 30, 2015, will present the affected businesses as 'held for sale'.
- The company has reissued revised Selected Financial Data, MD&A, and consolidated financial statements for fiscal years 2015, 2014, and 2013 to reflect these reporting changes.
- This 8-K is primarily an accounting update; for subsequent events and current performance, investors should refer to P&G's latest 10-Q and subsequent 8-K filings.
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 update P&G's financial reporting to reflect the accounting treatment for the divestiture of its beauty businesses to Coty, Inc. This includes reclassifying these businesses as discontinued operations and revising historical financial statements and disclosures accordingly.
What specific businesses are being divested?
The divestiture includes P&G's global salon professional hair care and color, retail hair color, cosmetics, and fine fragrance categories, along with select hair styling brands. These were previously part of the company's Beauty segment.
How will these divested businesses impact P&G's reported financial results going forward?
The divested businesses will no longer be part of P&G's ongoing operations. Their financial results will be reported separately as 'discontinued operations' and excluded from P&G's continuing operations and segment results, providing a clearer view of the core, ongoing business performance.
When will these changes be reflected in P&G's financial statements?
The changes are reflected in the consolidated financial statements and segment reporting beginning with the first quarter of fiscal year 2015-2016 (the period ending September 30, 2015), as reported in P&G's Form 10-Q filed on October 23, 2015. This 8-K provides revised historical data for prior years (2015, 2014, 2013) to align with this reporting change.
04—Continue