XML 28 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended
Sep. 30, 2022
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, 2021. 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 EndedNine Months Ended
 September 30,September 30,
 2022202120222021
Net sales  
Oral, Personal and Home Care  
North America$958 $931 $2,850 $2,765 
Latin America997 931 2,970 2,745 
Europe632 718 1,925 2,144 
Asia Pacific709 731 2,131 2,142 
Africa/Eurasia287 258 809 796 
Total Oral, Personal and Home Care3,583 3,569 10,685 10,592 
Pet Nutrition872 845 2,653 2,426 
Total Net sales$4,455 $4,414 $13,338 $13,018 
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 EndedNine Months Ended
 September 30,September 30,
 2022202120222021
Net sales
Oral Care44 %44 %44 %44 %
Personal Care19 %20 %19 %20 %
Home Care17 %18 %17 %17 %
Pet Nutrition20 %18 %20 %19 %
Total Net sales100 %100 %100 %100 %
Operating profit by segment was as follows:
Three Months EndedNine Months Ended
 September 30,September 30,
 2022202120222021
Operating profit  
Oral, Personal and Home Care  
North America$198 $183 $557 $585 
Latin America289 248 818 774 
Europe127 178 410 524 
Asia Pacific185 215 556 639 
Africa/Eurasia66 44 160 153 
Total Oral, Personal and Home Care865 868 2,501 2,675 
Pet Nutrition201 233 617 661 
Corporate(119)(134)(427)(369)
Total Operating profit$947 $967 $2,691 $2,967 
Corporate Operating profit (loss) for the three and nine months ended September 30, 2022 included charges resulting from the 2022 Global Productivity Initiative of $3 and $79, respectively, a gain on the sale of land in Asia Pacific of $47 in both periods and acquisition-related costs of $17 in both periods. Corporate Operating profit (loss) for the nine months ended September 30, 2021 included a benefit related to a value-added tax matter in Brazil of $26.