Segment Information

3 Months Ended

Mar. 31, 2020

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, 2019. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead 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.

Net sales by segment were as follows:



	Three Months Ended
	March 31,
	2020		2019
Net sales
Oral, Personal and Home Care
North America	$	929	$	853
Latin America	889		889
Europe	675		602
Asia Pacific	633		700
Africa/Eurasia	252		240
Total Oral, Personal and Home Care	3,378		3,284
Pet Nutrition	719		600
Total Net sales	$	4,097	$	3,884

Approximately 70% of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% 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,
	2020		2019
Net sales
Oral Care	44	%	48	%
Personal Care	20	%	19	%
Home Care	18	%	18	%
Pet Nutrition	18	%	15	%
Total Net sales	100	%	100	%

Operating profit by segment was as follows:



	Three Months Ended
	March 31,
	2020			2019
Operating profit
Oral, Personal and Home Care
North America	$	258		$	249
Latin America	248			232
Europe	154			151
Asia Pacific	161			189
Africa/Eurasia	56			46
Total Oral, Personal and Home Care	877			867
Pet Nutrition	203			164
Corporate	(128		)	(152		)
Total Operating profit	$	952		$	879

Corporate Operating profit (loss) for the three months ended March 31, 2020 included a charge for acquisition-related costs of $6. Corporate Operating profit (loss) for the three months ended March 31, 2019, included charges of $28 resulting from the Global Growth and Efficiency Program, which ended on December 31, 2019.