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, 2018. 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 by segment were as follows:



	Three Months Ended
	March 31,
	2019		2018
Net sales
Oral, Personal and Home Care
North America	$	853	$	827
Latin America	889		929
Europe	602		648
Asia Pacific	700		759
Africa/Eurasia	240		255
Total Oral, Personal and Home Care	3,284		3,418
Pet Nutrition	600		584
Total Net sales	$	3,884	$	4,002

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).

The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:



	Three Months Ended
	March 31,
	2019		2018
Net sales
Oral Care	48	%	49	%
Personal Care	19	%	19	%
Home Care	18	%	17	%
Pet Nutrition	15	%	15	%
Total Net sales	100	%	100	%

Operating profit by segment was as follows:



	Three Months Ended
	March 31,
	2019			2018
Operating profit
Oral, Personal and Home Care
North America	$	249		$	257
Latin America	232			273
Europe	151			162
Asia Pacific	189			226
Africa/Eurasia	46			50
Total Oral, Personal and Home Care	867			968
Pet Nutrition	164			164
Corporate	(152		)	(149		)
Total Operating profit	$	879		$	983

For the three months ended March 31, 2019 and 2018, Corporate Operating profit (loss) included charges of $28 and $24, respectively, resulting from the Global Growth and Efficiency Program.

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