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. 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 2017. No other customer represents more than 10% of Net sales.

In 2017, Corporate Operating profit (loss) includes charges of $333 resulting from the Global Growth and Efficiency Program. In 2016, Corporate Operating profit (loss) includes charges of $228 resulting from the Global Growth and Efficiency Program and $17 for a litigation matter and a gain of $97 on the sale of land in Mexico. In 2015, Corporate Operating profit (loss) included charges of $1,084 related to the deconsolidation of the Company’s Venezuelan operations, $254 related to the Global Growth and Efficiency 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 litigation matter and a gain of $187 on the sale of the Company’s laundry detergent business in the South Pacific.



	2017		2016		2015
Net sales
Oral, Personal and Home Care
North America⁽¹⁾	$	3,117	$	3,183	$	3,149
Latin America	3,887		3,650		4,327
Europe	2,394		2,342		2,411
Asia Pacific	2,781		2,796		2,937
Africa/Eurasia	983		960		998
Total Oral, Personal and Home Care	13,162		12,931		13,822
Pet Nutrition⁽²⁾	2,292		2,264		2,212
Total Net sales	$	15,454	$	15,195	$	16,034

_________


⁽¹⁾	Net sales in the U.S. for Oral, Personal and Home Care were $2,865, $2,932 and $2,896 in 2017, 2016 and 2015, respectively.


⁽²⁾	Net sales in the U.S. for Pet Nutrition were $1,246, $1,243 and $1,223 in 2017, 2016 and 2015, respectively.



	2017			2016			2015
Operating profit
Oral, Personal and Home Care
North America	$	986		$	1,030		$	974
Latin America	1,162			1,132			1,209
Europe	599			579			615
Asia Pacific	841			887			888
Africa/Eurasia	179			186			178
Total Oral, Personal and Home Care	3,767			3,814			3,864
Pet Nutrition	653			653			612
Corporate	(831		)	(630		)	(1,687		)
Total Operating profit	$	3,589		$	3,837		$	2,789



	2017		2016		2015
Capital expenditures
Oral, Personal and Home Care
North America	$	74	$	151	$	207
Latin America	127		94		110
Europe	63		51		40
Asia Pacific	125		120		121
Africa/Eurasia	13		17		12
Total Oral, Personal and Home Care	402		433		490
Pet Nutrition	33		38		34
Corporate	118		122		167
Total Capital expenditures	$	553	$	593	$	691



	2017		2016		2015
Depreciation and amortization
Oral, Personal and Home Care
North America	$	58	$	54	$	47
Latin America	82		76		88
Europe	74		64		67
Asia Pacific	101		96		99
Africa/Eurasia	8		7		8
Total Oral, Personal and Home Care	323		297		309
Pet Nutrition	53		53		52
Corporate	99		93		88
Total Depreciation and amortization	$	475	$	443	$	449



	2017		2016		2015
Identifiable assets
Oral, Personal and Home Care
North America	$	2,608	$	2,685	$	2,622
Latin America	2,423		2,314		2,314
Europe	3,781		3,554		3,308
Asia Pacific	2,244		2,006		2,031
Africa/Eurasia	544		499		476
Total Oral, Personal and Home Care	11,600		11,058		10,751
Pet Nutrition	1,026		1,009		1,006
Corporate⁽¹⁾	50		56		178
Total Identifiable assets⁽²⁾	$	12,676	$	12,123	$	11,935

____________


⁽¹⁾	In 2017, Corporate identifiable assets primarily consist of derivative instruments (5%) and investments in equity securities (86%). 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%).


⁽²⁾	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 $7,908, $7,642 and $7,420 in 2017, 2016 and 2015, respectively.