Segment Information

12 Months Ended

Dec. 31, 2012

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 costs 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 2012, Corporate Operating profit (loss) includes charges of $89 related to the 2012 Restructuring Program, costs of $21 associated with the business realignment and other cost-saving initiatives, and costs of $24 related to the sale of land in Mexico. In 2011, Corporate Operating profit (loss) included a gain on the sale of the non-core laundry detergent business in Colombia of $207, costs of $190 associated with the 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 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 and the sale of the non-core laundry detergent business in Colombia, refer to Note 3. In 2010, Corporate Operating profit (loss) included a one-time $271 charge for the transition 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 14.

	2012		2011		2010
Net sales
Oral, Personal and Home Care
North America(1)	$	3,096	$	2,995	$	3,005
Latin America	4,907		4,778		4,261
Europe/South Pacific	3,417		3,508		3,220
Greater Asia/Africa	3,505		3,281		2,998
Total Oral, Personal and Home Care	14,925		14,562		13,484
Pet Nutrition(2)	2,160		2,172		2,080
Total Net sales	$	17,085	$	16,734	$	15,564

_________

⁽¹⁾  Net sales in the U.S. for Oral, Personal and Home Care were $2,669, $2,567 and $2,591 in 2012, 2011 and 2010, respectively.

⁽²⁾  Net sales in the U.S. for Pet Nutrition were $1,052, $1,032 and $1,025 in 2012, 2011 and 2010, respectively.

	2012			2011			2010
Operating profit
Oral, Personal and Home Care
North America	$	834		$	791		$	884
Latin America	1,430			1,414			1,295
Europe/South Pacific	747			715			742
Greater Asia/Africa	886			807			767
Total Oral, Personal and Home Care	3,897			3,727			3,688
Pet Nutrition	589			560			559
Corporate	(597		)	(446		)	(758		)
Total Operating profit	$	3,889		$	3,841		$	3,489

	2012		2011		2010
Capital expenditures
Oral, Personal and Home Care
North America	$	43	$	54	$	57
Latin America	237		194		138
Europe/South Pacific	71		64		80
Greater Asia/Africa	104		119		111
Total Oral, Personal and Home Care	455		431		386
Pet Nutrition	37		32		81
Corporate	73		74		83
Total Capital expenditures	$	565	$	537	$	550

	2012		2011		2010
Depreciation and amortization
Oral, Personal and Home Care
North America	$	51	$	57	$	57
Latin America	90		91		84
Europe/South Pacific	85		82		67
Greater Asia/Africa	81		79		69
Total Oral, Personal and Home Care	307		309		277
Pet Nutrition	50		51		45
Corporate	68		61		54
Total Depreciation and amortization	$	425	$	421	$	376

Identifiable assets	2012		2011		2010
Oral, Personal and Home Care
North America	$	2,195	$	2,288	$	2,231
Latin America	4,250		3,636		3,092
Europe/South Pacific	3,649		3,555		2,775
Greater Asia/Africa	2,169		2,069		1,943
Total Oral, Personal and Home Care	12,263		11,548		10,041
Pet Nutrition	1,045		1,078		1,081
Corporate(3)	86		98		50
Total Identifiable assets(4)	$	13,394	$	12,724	$	11,172

____________

⁽³⁾  In 2012, Corporate identifiable assets primarily consist of derivative instruments (67%) and investments in equity securities (28%).  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%).  

⁽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 $8,066, $7,926 and $7,116 in 2012, 2011 and 2010, respectively.