Segment Information

12 Months Ended

Dec. 31, 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. 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 2019. No other customer represents more than 10% of Net sales.

In 2019, 2018 and 2017, Corporate Operating profit included charges of $125, $152 and $313, respectively, resulting from the Global Growth and Efficiency Program. Additionally, Corporate Operating profit for 2019 included a charge for acquisition-related costs of $24 and a benefit from a value-added tax matter in Brazil of $30.



	2019		2018		2017
Net sales
Oral, Personal and Home Care
North America⁽¹⁾	$	3,424	$	3,348	$	3,117
Latin America	3,606		3,605		3,887
Europe	2,450		2,502		2,394
Asia Pacific	2,707		2,734		2,781
Africa/Eurasia	981		967		983
Total Oral, Personal and Home Care	13,168		13,156		13,162
Pet Nutrition⁽²⁾	2,525		2,388		2,292
Total Net sales	$	15,693	$	15,544	$	15,454

_________

⁽¹⁾Net sales in the U.S. for Oral, Personal and Home Care were $3,166, $3,091 and $2,865 in 2019, 2018 and 2017, respectively.

⁽²⁾Net sales in the U.S. for Pet Nutrition were $1,441, $1,304 and $1,246 in 2019, 2018 and 2017, respectively.



	2019			2018			2017
Operating profit
Oral, Personal and Home Care
North America	$	982		$	1,037		$	1,043
Latin America	963			995			1,171
Europe	624			634			605
Asia Pacific	749			777			842
Africa/Eurasia	187			173			180
Total Oral, Personal and Home Care	3,505			3,616			3,841
Pet Nutrition	703			680			677
Corporate	(654		)	(602		)	(811		)
Total Operating profit	$	3,554		$	3,694		$	3,707



	2019		2018		2017
Capital expenditures
Oral, Personal and Home Care
North America	$	43	$	53	$	74
Latin America	90		131		127
Europe	42		39		63
Asia Pacific	40		75		125
Africa/Eurasia	8		11		13
Total Oral, Personal and Home Care	223		309		402
Pet Nutrition	41		35		33
Corporate	71		92		118
Total Capital expenditures	$	335	$	436	$	553



	2019		2018		2017
Depreciation and amortization
Oral, Personal and Home Care
North America	$	94	$	88	$	58
Latin America	84		82		82
Europe	72		70		74
Asia Pacific	100		103		101
Africa/Eurasia	8		8		8
Total Oral, Personal and Home Care	358		351		323
Pet Nutrition	55		53		53
Corporate	106		107		99
Total Depreciation and amortization	$	519	$	511	$	475



	2019		2018		2017
Identifiable assets
Oral, Personal and Home Care
North America	$	3,576	$	3,310	$	2,608
Latin America	2,384		2,225		2,423
Europe	5,104		2,883		3,781
Asia Pacific	2,155		2,148		2,244
Africa/Eurasia	590		502		544
Total Oral, Personal and Home Care	13,809		11,068		11,600
Pet Nutrition	1,175		1,033		1,026
Corporate⁽¹⁾	50		60		50
Total Identifiable assets⁽²⁾	$	15,034	$	12,161	$	12,676

____________


⁽¹⁾	In 2019, Corporate identifiable assets primarily consist of derivative instruments (2%) and investments in equity securities (92%). 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%).

⁽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 $10,192 in 2019, one-half of total long-lived assets of $8,259 in 2018 , and one-third of total long-lived assets of $7,908 in 2017.