Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. 

Effective April 1, 2016, the operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.

Through March 31, 2016, the Oral, Personal and Home Care product segment included the North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia geographic operating segments. As a result of management changes effective April 1, 2016, the Company realigned the geographic structure of its Europe/South Pacific and Asia reportable operating segments. Management responsibility for the South Pacific operations was transferred from Europe/South Pacific management to Asia management. Accordingly, commencing with the Company’s financial reporting for the quarter ended June 30, 2016, the results of the South Pacific operations are reported in the Asia Pacific reportable operating segment. The Company has recast its historical geographic segment information to conform to the new reporting structure.

These changes have no impact on the Company’s historical consolidated financial position, results of operations or cash flows.

The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes.

The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. 

Approximately 75% of the Company’s Net sales are generated from markets outside the U.S., with approximately 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). Oral, Personal and Home Care sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 11% of the Company's Net sales in 2016. No other customer represents more than 10% of Net sales.

In 2016, Corporate Operating profit (loss) includes charges of $228 resulting from the 2012 Restructuring Program, $17 for a previously disclosed litigation matter and a gain of $97 on the sale of land in Mexico. In 2015, Corporate Operating profit (loss) included a charge of $1,084 related to the deconsolidation of the Company’s Venezuelan operations, $254 related to the 2012 Restructuring Program, $34 related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of effective devaluations and $14 for a previously disclosed litigation matter and a gain of $187 on the sale of the Company’s laundry detergent business in the South Pacific. In 2014, Corporate Operating profit (loss) included charges of $286 related to the 2012 Restructuring Program, $327 related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of a devaluation and $41 for a previously disclosed litigation matter and costs of $4 related to the sale of land in Mexico.

	2016		2015		2014
Net sales
Oral, Personal and Home Care
North America(1)	$	3,183	$	3,149	$	3,124
Latin America	3,650		4,327		4,769
Europe	2,342		2,411		2,840
Asia Pacific	2,796		2,937		3,081
Africa/Eurasia	960		998		1,208
Total Oral, Personal and Home Care	12,931		13,822		15,022
Pet Nutrition(2)	2,264		2,212		2,255
Total Net sales	$	15,195	$	16,034	$	17,277

_________

⁽¹⁾  Net sales in the U.S. for Oral, Personal and Home Care were $2,932, $2,896 and $2,835 in 2016, 2015 and 2014, respectively.

⁽²⁾  Net sales in the U.S. for Pet Nutrition were $1,243, $1,223 and $1,149 in 2016, 2015 and 2014, respectively.

	2016			2015			2014
Operating profit
Oral, Personal and Home Care
North America	$	1,030		$	974		$	926
Latin America	1,132			1,209			1,279
Europe	579			615			712
Asia Pacific	887			888			901
Africa/Eurasia	186			178			235
Total Oral, Personal and Home Care	3,814			3,864			4,053
Pet Nutrition	653			612			592
Corporate	(630		)	(1,687		)	(1,088		)
Total Operating profit	$	3,837		$	2,789		$	3,557

	2016		2015		2014
Capital expenditures
Oral, Personal and Home Care
North America	$	151	$	207	$	136
Latin America	94		110		205
Europe	51		40		74
Asia Pacific	120		121		151
Africa/Eurasia	17		12		14
Total Oral, Personal and Home Care	433		490		580
Pet Nutrition	38		34		40
Corporate	122		167		137
Total Capital expenditures	$	593	$	691	$	757

	2016		2015		2014
Depreciation and amortization
Oral, Personal and Home Care
North America	$	54	$	47	$	43
Latin America	76		88		93
Europe	64		67		77
Asia Pacific	96		99		85
Africa/Eurasia	7		8		10
Total Oral, Personal and Home Care	297		309		308
Pet Nutrition	53		52		52
Corporate	93		88		82
Total Depreciation and amortization	$	443	$	449	$	442

	2016		2015		2014
Identifiable assets(1)
Oral, Personal and Home Care
North America	$	2,685	$	2,622	$	2,326
Latin America	2,314		2,314		3,693
Europe	3,554		3,308		3,669
Asia Pacific	2,006		2,031		2,070
Africa/Eurasia	499		476		510
Total Oral, Personal and Home Care	11,058		10,751		12,268
Pet Nutrition	1,009		1,006		1,051
Corporate(2)	56		178		121
Total Identifiable assets(3)	$	12,123	$	11,935	$	13,440

____________

⁽¹⁾  Prior year amounts have been reclassified to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” See Note 2 to the Consolidated Financial Statements for additional information.

⁽²⁾  In 2016, Corporate identifiable assets primarily consist of derivative instruments (24%) and investments in equity securities (68%). In 2015, Corporate identifiable assets primarily consist of derivative instruments (76%) and investments in equity securities (23%). In 2014, Corporate identifiable assets primarily consist of derivative instruments (72%) and investments in equity securities (25%). 

⁽³⁾  Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $7,642, $7,420 and $8,086 in 2016, 2015 and 2014, respectively.