XML 28 R19.htm IDEA: XBRL DOCUMENT v3.23.2
Segment Information
 6 Months Ended
Jun. 30, 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 EndedSix Months Ended
 June 30,June 30,
 2023202220232022
Net sales  
Oral, Personal and Home Care  
North America$978 $965 $1,936 $1,891 
Latin America1,178 1,019 2,253 1,973 
Europe678 639 1,328 1,293 
Asia Pacific664 696 1,402 1,422 
Africa/Eurasia268 256 556 523 
Total Oral, Personal and Home Care3,766 3,575 7,475 7,102 
Pet Nutrition1,056 909 2,117 1,781 
Total Net sales$4,822 $4,484 $9,592 $8,883 
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 EndedSix Months Ended
 June 30,June 30,
 2023202220232022
Net sales
Oral Care42 %44 %42 %44 %
Personal Care19 %19 %19 %19 %
Home Care17 %17 %17 %17 %
Pet Nutrition22 %20 %22 %20 %
Total Net sales100 %100 %100 %100 %
Operating profit by segment was as follows:
Three Months EndedSix Months Ended
 June 30,June 30,
 2023202220232022
Operating profit  
Oral, Personal and Home Care  
North America$227 $196 $420 $359 
Latin America363 264 678 529 
Europe134 133 250 283 
Asia Pacific169 164 371 370 
Africa/Eurasia62 50 130 94 
Total Oral, Personal and Home Care955 807 1,849 1,635 
Pet Nutrition191 212 374 416 
Corporate(172)(135)(340)(307)
Total Operating profit$974 $884 $1,883 $1,744 

Corporate Operating profit (loss) for the three months ended June 30, 2023 included charges resulting from the 2022 Global Productivity Initiative of $18.

Corporate Operating profit (loss) for the six months ended June 30, 2023 included product recall costs of $25 and charges resulting from the 2022 Global Productivity Initiative of $23.

Corporate Operating profit (loss) for the three and six months ended June 30, 2022 included charges resulting from the 2022 Global Productivity Initiative of $13 and $76, respectively.