Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

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, 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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net sales
Oral, Personal and Home Care
North America	$	949	$	846	$	1,878	$	1,699
Latin America	805		929		1,694		1,818
Europe	617		588		1,292		1,190
Asia Pacific	625		646		1,258		1,346
Africa/Eurasia	229		244		481		484
Total Oral, Personal and Home Care	3,225		3,253		6,603		6,537
Pet Nutrition	672		613		1,391		1,213
Total Net sales	$	3,897	$	3,866	$	7,994	$	7,750

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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net sales
Oral Care	41	%	45	%	43	%	47	%
Personal Care	22	%	21	%	21	%	19	%
Home Care	20	%	18	%	19	%	18	%
Pet Nutrition	17	%	16	%	17	%	16	%
Total Net sales	100	%	100	%	100	%	100	%

Operating profit by segment was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating profit
Oral, Personal and Home Care
North America	$	254	$	254	$	512	$	503
Latin America	229		251		478		483
Europe	158		148		312		299
Asia Pacific	176		174		337		363
Africa/Eurasia	56		47		112		93
Total Oral, Personal and Home Care	873		874		1,751		1,741
Pet Nutrition	191		167		393		331
Corporate	(118)		(153)		(246)		(305)
Total Operating profit	$	946	$	888	$	1,898	$	1,767

For the three and six months ended June 30, 2020, Corporate Operating profit (loss) included charges for acquisition-related costs of $0 and $6, respectively.

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, which ended on December 31, 2019.