Segment Information

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Segment Information

Segment Information

Effective January 1, 2013, the Company realigned the geographic structure of its North America and Latin America reportable operating segments. In order to better leverage Latin America management's knowledge of emerging market consumers to accelerate growth in the region, management responsibility for the Puerto Rico and CARICOM operations was transferred from North America to Latin America management. Accordingly, commencing with the Company's financial reporting for the quarter ended March 31, 2013, the results of the Puerto Rico and CARICOM operations, which represent less than 1% of the Company's global business, were reported in the Latin America reportable operating segment. Previously, Puerto Rico and CARICOM represented approximately 4% of Net sales of North America and now represent approximately 3% of Net sales of Latin America. The Company reclassified its historical geographic segment information to conform to the new reporting structure which results in a slight modification to the geographic components of the Oral, Personal and Home Care segment, with no impact on historical Company results overall.

The Company 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. 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 in order to measure the underlying performance of the business segments.

Net sales and Operating profit by segment were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net sales
Oral, Personal and Home Care
North America	$	762		$	727		$	1,526		$	1,451
Latin America	1,282			1,300			2,496			2,501
Europe/South Pacific	824			850			1,672			1,704
Greater Asia/Africa	929			859			1,884			1,738
Total Oral, Personal and Home Care	3,797			3,736			7,578			7,394
Pet Nutrition	549			531			1,083			1,073
Total Net sales	$	4,346		$	4,267		$	8,661		$	8,467
Operating profit
Oral, Personal and Home Care
North America	$	227		$	190		$	442		$	367
Latin America	352			373			664			723
Europe/South Pacific	189			179			389			362
Greater Asia/Africa	238			220			486			440
Total Oral, Personal and Home Care	1,006			962			1,981			1,892
Pet Nutrition	136			145			272			293
Corporate	(236		)	(125		)	(605		)	(265		)
Total Operating profit	$	906		$	982		$	1,648		$	1,920

Approximately 80% of the Company’s Net sales are generated from markets outside the U.S., with over 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Greater Asia/Africa (excluding Japan) and Central Europe).

For the three months ended June 30, 2013, Corporate Operating profit (loss) includes costs of $102 associated with the 2012 Restructuring Program, a charge of $18 for a competition law matter in France related to the home care and personal care sectors and costs of $6 related to the sale of land in Mexico. For the six months ended June 30, 2013, Corporate Operating profit (loss) includes costs of $168 associated with 2012 Restructuring Program, a one-time $172 charge for the impact of the devaluation in Venezuela, a charge of $18 for a competition law matter in France related to the home care and personal care sectors and costs of $11 related to the sale of land in Mexico. For further information regarding the 2012 Restructuring Program, refer to Note 4, Restructuring and Related Implementation Charges. For further information regarding the competition law matter in France, refer to Note 11, Contingencies. For further information regarding the sale of land in Mexico, refer to Note 3, Acquisitions and Divestitures. For the three months ended June 30, 2012, Corporate Operating profit (loss) included costs of $6 related to the sale of land in Mexico and costs of $13 associated with various business realignment and other cost-saving initiatives.