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.

Effective January 1, 2018, as required, the Company adopted ASU No. 2017-07, “Compensation–Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” on a retrospective basis. To conform to the current year’s presentation, for the twelve months ended December 31, 2017 and 2016, the Company reclassified $118 and $118, respectively, of non-service related components of pension and other postretirement costs, which was previously deducted from Operating profit, to a new line item, “Non-service related postretirement costs,” which is below Operating profit. The impact of the reclassification from Operating profit by segment for the twelve months ended December 31, 2017 is as follows: North America $57, Latin America $9, Europe $6, Asia Pacific $1, Africa/Eurasia $1, Pet Nutrition $24 and Corporate $20. The impact of the reclassification from Operating profit by segment for the twelve months ended December 31, 2016 is as follows: North America $57, Latin America $7, Europe $7, Asia Pacific $1, Africa/Eurasia $1, Pet Nutrition $24 and Corporate $21. The reclassification had no effect on Net income attributable to Colgate-Palmolive Company, Earnings per common share or Cash flow.

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 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.

Approximately 70% 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, Inc. and its affiliates represent approximately 11% of the Company’s Net sales in 2018. No other customer represents more than 10% of Net sales.

In 2018, 2017 and 2016, Corporate Operating profit included charges of $152, $313 and $216, respectively, resulting from the Global Growth and Efficiency Program. In 2016, Corporate Operating profit also included charges of $17 for a litigation matter and a gain of $97 on the sale of land in Mexico.



	2018		2017		2016
Net sales
Oral, Personal and Home Care
North America⁽¹⁾	$	3,348	$	3,117	$	3,183
Latin America	3,605		3,887		3,650
Europe	2,502		2,394		2,342
Asia Pacific	2,734		2,781		2,796
Africa/Eurasia	967		983		960
Total Oral, Personal and Home Care	13,156		13,162		12,931
Pet Nutrition⁽²⁾	2,388		2,292		2,264
Total Net sales	$	15,544	$	15,454	$	15,195

_________

⁽¹⁾Net sales in the U.S. for Oral, Personal and Home Care were $3,091, $2,865 and $2,932 in 2018, 2017 and 2016, respectively.

⁽²⁾Net sales in the U.S. for Pet Nutrition were $1,304, $1,246 and $1,243 in 2018, 2017 and 2016, respectively.



	2018			2017			2016
Operating profit
Oral, Personal and Home Care
North America	$	1,037		$	1,043		$	1,087
Latin America	995			1,171			1,139
Europe	634			605			586
Asia Pacific	777			842			888
Africa/Eurasia	173			180			187
Total Oral, Personal and Home Care	3,616			3,841			3,887
Pet Nutrition	680			677			677
Corporate	(602		)	(811		)	(609		)
Total Operating profit	$	3,694		$	3,707		$	3,955



	2018		2017		2016
Capital expenditures
Oral, Personal and Home Care
North America	$	53	$	74	$	151
Latin America	131		127		94
Europe	39		63		51
Asia Pacific	75		125		120
Africa/Eurasia	11		13		17
Total Oral, Personal and Home Care	309		402		433
Pet Nutrition	35		33		38
Corporate	92		118		122
Total Capital expenditures	$	436	$	553	$	593



	2018		2017		2016
Depreciation and amortization
Oral, Personal and Home Care
North America	$	88	$	58	$	54
Latin America	82		82		76
Europe	70		74		64
Asia Pacific	103		101		96
Africa/Eurasia	8		8		7
Total Oral, Personal and Home Care	351		323		297
Pet Nutrition	53		53		53
Corporate	107		99		93
Total Depreciation and amortization	$	511	$	475	$	443



	2018		2017		2016
Identifiable assets
Oral, Personal and Home Care
North America	$	3,310	$	2,608	$	2,685
Latin America	2,225		2,423		2,314
Europe	2,883		3,781		3,554
Asia Pacific	2,148		2,244		2,006
Africa/Eurasia	502		544		499
Total Oral, Personal and Home Care	11,068		11,600		11,058
Pet Nutrition	1,033		1,026		1,009
Corporate⁽¹⁾	60		50		56
Total Identifiable assets⁽²⁾	$	12,161	$	12,676	$	12,123

____________


⁽¹⁾	In 2018, Corporate identifiable assets primarily consist of derivative instruments (7%) and investments in equity securities (88%). 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%).


⁽²⁾	Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-half of total long-lived assets of $8,259 in 2018 and one-third of total long-lived assets of $7,908 and $7,642 in 2017 and 2016, respectively.