Segment Information

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [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 segment are managed geographically in four reportable operating segments:  North America, Latin America, Europe/South Pacific and Greater Asia/Africa.  Management evaluates segment performance based on several factors, including Operating profit.  The Company uses Operating profit as a measure of the 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.  Intercompany sales have been eliminated.  Corporate operations include stock-based compensation related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation 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 business segments. 

In 2011, Corporate Operating profit includes a gain on the sale of the laundry detergent business in Colombia of $207, costs of $190 associated with various business realignment and other cost-saving initiatives, costs of $13 related to the sale of land in Mexico, and a charge of $21 for a competition law matter in France related to a divested detergent business. The various business realignment and other cost-saving initiatives include the integration of Sanex, the right-sizing of the Colombia business and the closing of an oral care facility in Mississauga, Canada and a Hill’s facility in Los Angeles, California. For further information regarding the sale of land in Mexico, refer to Note 3. In 2010, Corporate Operating profit also includes the one-time $271 charge of transitioning to hyperinflationary accounting in Venezuela as of January 1, 2010, a fourth quarter $86 pretax charge for termination benefits and a fourth quarter $50 pretax gain on sale of non-core product lines. For further information regarding Venezuela, refer to Note 13.

	2011		2010		2009
Net sales
Oral, Personal and Home Care
North America(1)	$	2,995	$	3,005	$	2,950
Latin America	4,778		4,261		4,319
Europe/South Pacific	3,508		3,220		3,271
Greater Asia/Africa	3,281		2,998		2,655
Total Oral, Personal and Home Care	14,562		13,484		13,195
Pet Nutrition(2)	2,172		2,080		2,132
Total Net sales	$	16,734	$	15,564	$	15,327

_________

⁽¹⁾  Net sales in the U.S. for Oral, Personal and Home Care were $2,567, $2,591 and $2,577 in 2011, 2010 and 2009, respectively.

⁽²⁾  Net sales in the U.S. for Pet Nutrition were $1,032, $1,025 and $1,071 in 2011, 2010 and 2009, respectively.

	2011			2010			2009
Operating profit
Oral, Personal and Home Care
North America	$	791		$	884		$	843
Latin America	1,414			1,295			1,360
Europe/South Pacific	715			742			748
Greater Asia/Africa	807			767			631
Total Oral, Personal and Home Care	3,727			3,688			3,582
Pet Nutrition	560			559			555
Corporate	(446		)	(758		)	(522		)
Total Operating profit	$	3,841		$	3,489		$	3,615

	2011		2010		2009
Capital expenditures
Oral, Personal and Home Care
North America	$	54	$	57	$	62
Latin America	194		138		105
Europe/South Pacific	64		80		86
Greater Asia/Africa	119		111		91
Total Oral, Personal and Home Care	431		386		344
Pet Nutrition	32		81		156
Corporate	74		83		75
Total Capital expenditures	$	537	$	550	$	575

	2011		2010		2009
Depreciation and amortization
Oral, Personal and Home Care
North America	$	57	$	57	$	59
Latin America	91		84		77
Europe/South Pacific	82		67		67
Greater Asia/Africa	79		69		63
Total Oral, Personal and Home Care	309		277		266
Pet Nutrition	51		45		36
Corporate	61		54		49
Total Depreciation and amortization	$	421	$	376	$	351

Identifiable assets	2011		2010		2009
Oral, Personal and Home Care
North America	$	2,288	$	2,231	$	2,271
Latin America	3,636		3,092		3,278
Europe/South Pacific	3,555		2,775		2,647
Greater Asia/Africa	2,069		1,943		1,760
Total Oral, Personal and Home Care	11,548		10,041		9,956
Pet Nutrition	1,078		1,081		1,127
Corporate(3)	98		50		51
Total Identifiable assets(4)	$	12,724	$	11,172	$	11,134

____________

⁽³⁾  In 2011, Corporate identifiable assets primarily consist of derivative instruments (73%) and investments in equity securities (22%).  In 2010, Corporate identifiable assets primarily consist of derivative instruments (44%) and investments in equity securities (48%).  In 2009, Corporate identifiable assets primarily consist of derivative instruments (44%) and investments in equity securities (46%).  

⁽⁴⁾  Long-lived assets in the U.S., primarily property, plant and equipment and goodwill and other intangibles represented approximately one-third of total long-lived assets of $7,926, $7,116 and $6,795 in 2011, 2010 and 2009, respectively.