Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

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

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.

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 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 charges 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.

Net sales and Operating profit by segment were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Net sales
Oral, Personal and Home Care
North America	$	764		$	793		$	1,524		$	1,593
Latin America	1,002			938			1,926			1,786
Europe	584			606			1,142			1,194
Asia Pacific	663			697			1,383			1,440
Africa/Eurasia	241			239			487			470
Total Oral, Personal and Home Care	3,254			3,273			6,462			6,483
Pet Nutrition	572			572			1,126			1,124
Total Net sales	$	3,826		$	3,845		$	7,588		$	7,607
Operating profit
Oral, Personal and Home Care
North America	$	241		$	250		$	474		$	489
Latin America	308			284			577			531
Europe	145			138			285			279
Asia Pacific	205			219			424			438
Africa/Eurasia	45			45			90			88
Total Oral, Personal and Home Care	944			936			1,850			1,825
Pet Nutrition	163			162			320			317
Corporate	(254		)	(154		)	(432		)	(331		)
Total Operating profit	$	853		$	944		$	1,738		$	1,811

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).

For the three months endedJune 30, 2017, Corporate Operating profit (loss) included charges of $142 resulting from the 2012 Restructuring Program. For the six months endedJune 30, 2017, Corporate Operating profit (loss) included charges of $188 resulting from the 2012 Restructuring Program.

For the three months endedJune 30, 2016, Corporate Operating profit (loss) included charges of $59 resulting from the 2012 Restructuring Program. For the six months endedJune 30, 2016, Corporate Operating profit (loss) included charges of $114 resulting from the 2012 Restructuring Program.

For further information regarding the 2012 Restructuring Program, refer to Note 4, Restructuring and Related Implementation Charges.