Cumulative hedging adjustment included in the carrying amount

COLGATE-PALMOLIVE COMPANY Notes to Condensed Consolidated Financial Statements (continued) (Dollars in Millions Except Share and Per Share Amounts)(Unaudited)  
  
The carrying amount of cash, cash equivalents, marketable securities, accounts receivable and short-term debt approximated fair value as of September 30, 2022 and December 31, 2021. The estimated fair value of the Company’s long-term debt, including the current portion, as of September 30, 2022 and December 31, 2021, was $7,615 and $7,651, respectively, and the related carrying value was $8,232 and $7,206, respectively. In August 2022, the Company issued $500 of three-year Senior Notes at a fixed coupon rate of 3.100%, $500 of five-year Senior Notes at a fixed coupon rate of 3.100% and $500 of ten-year Senior Notes at a fixed coupon rate of 3.250%. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation).  
The following amounts were recorded on the Condensed Consolidated Balance Sheet related to the cumulative basis adjustment for fair value hedges as of:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | September 30, 2022 |  | December 31, 2021 |
| Long-term debt: |   |  |   |
| Carrying amount of hedged item | $ | 399  |  |  | $ | 405  |  |
| Cumulative hedging adjustment included in the carrying amount | —  |  |  | 5  |  |

The following tables present the notional values as of:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | September 30, 2022 |
|   | Foreign Currency Contracts |  | Foreign Currency Debt |  | Interest Rate Swaps |  |  Forward-Starting Interest Rate Swaps |  | Commodity Contracts |  |  Total |
| Fair Value Hedges  | $ | 596  |  |  | $ | —  |  |  | $ | 400  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 996  |  |
| Cash Flow Hedges  | 792  |  |  | —  |  |  | —  |  |  | —  |  |  | 28  |  |  | 820  |  |
| Net Investment Hedges | 444  |  |  | 3,838  |  |  | —  |  |  | —  |  |  | —  |  |  | 4,282  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | December 31, 2021 |
|   | Foreign Currency Contracts |  | Foreign Currency Debt |  | Interest Rate Swaps |  | Forward-Starting Interest Rate Swaps |  | Commodity Contracts |  |  Total |
| Fair Value Hedges  | $ | 566  |  |  | $ | —  |  |  | $ | 400  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 966  |  |
| Cash Flow Hedges  | 873  |  |  | —  |  |  | —  |  |  | 700  |  |  | 24  |  |  | 1,597  |  |
| Net Investment Hedges | 173  |  |  | 4,600  |  |  | —  |  |  | —  |  |  | —  |  |  | 4,773  |  |

22
