Segment Information

3 Months Ended

Mar. 31, 2023

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, 2022. 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
	March 31,
	2023		2022
Net sales
Oral, Personal and Home Care
North America	$	958	$	926
Latin America	1,075		954
Europe	650		654
Asia Pacific	738		726
Africa/Eurasia	288		267
Total Oral, Personal and Home Care	3,709		3,527
Pet Nutrition	1,061		872
Total Net sales	$	4,770	$	4,399

Approximately two-thirds 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,
	2023		2022
Net sales
Oral Care	43	%	45	%
Personal Care	18	%	18	%
Home Care	17	%	17	%
Pet Nutrition	22	%	20	%
Total Net sales	100	%	100	%

Operating profit by segment was as follows:

	Three Months Ended
	March 31,
	2023		2022
Operating profit
Oral, Personal and Home Care
North America	$	193	$	163
Latin America	315		265
Europe	116		150
Asia Pacific	202		206
Africa/Eurasia	68		44
Total Oral, Personal and Home Care	894		828
Pet Nutrition	183		204
Corporate	(168)		(172)
Total Operating profit	$	909	$	860

Corporate Operating profit (loss) for the three months ended March 31, 2023 included product recall costs of $25 and charges resulting from the 2022 Global Productivity Initiative of $5. Corporate Operating profit (loss) for the three months ended March 31, 2022 included charges resulting from the 2022 Global Productivity Initiative of $63.