Segment Information

6 Months Ended

Jun. 30, 2019

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				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Net sales
Oral, Personal and Home Care
North America	$	846	$	824	$	1,699	$	1,651
Latin America	929		933		1,818		1,862
Europe	588		620		1,190		1,268
Asia Pacific	646		674		1,346		1,433
Africa/Eurasia	244		243		484		498
Total Oral, Personal and Home Care	3,253		3,294		6,537		6,712
Pet Nutrition	613		592		1,213		1,176
Total Net sales	$	3,866	$	3,886	$	7,750	$	7,888

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				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Net sales
Oral Care	45	%	47	%	47	%	48	%
Personal Care	21	%	20	%	19	%	19	%
Home Care	18	%	18	%	18	%	18	%
Pet Nutrition	16	%	15	%	16	%	15	%
Total Net sales	100	%	100	%	100	%	100	%

Operating profit by segment was as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Operating profit
Oral, Personal and Home Care
North America	$	254		$	264		$	503		$	521
Latin America	251			262			483			535
Europe	148			156			299			318
Asia Pacific	174			203			363			429
Africa/Eurasia	47			42			93			92
Total Oral, Personal and Home Care	874			927			1,741			1,895
Pet Nutrition	167			165			331			329
Corporate	(153		)	(146		)	(305		)	(295		)
Total Operating profit	$	888		$	946		$	1,767		$	1,929

For the three and six months ended June 30, 2019, Corporate Operating profit (loss) included charges of $40 and $68, respectively, resulting from the Global Growth and Efficiency Program.

For the three and six months ended June 30, 2018, Corporate Operating profit (loss) included charges of $58 and $82, 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.