Segment Information

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements [Abstract]

Segment Information

Segment Information

The Company has made certain changes in its segment reporting affecting several of the geographic operating segments within its Oral, Personal and Home Care product segment. These changes have no impact on the Company's historical consolidated financial position, results of operations or cash flows.

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.

In addition, given the growing importance of the Company's operations in emerging markets, effective with the quarter ended September 30, 2013, the Company is separately reporting financial information for its Asia and Africa/Eurasia operating segments. Previously, the financial information for these operating segments was aggregated into the Greater Asia/Africa reportable operating segment.

The Company has recast its historical geographic segment information to conform to the new reporting structure which results in 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						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Net sales
Oral, Personal and Home Care
North America	$	774		$	766		$	2,300		$	2,217
Latin America	1,251			1,276			3,747			3,777
Europe/South Pacific	880			865			2,552			2,569
Asia	627			583			1,900			1,717
Africa/Eurasia	321			314			932			918
Total Oral, Personal and Home Care	3,853			3,804			11,431			11,198
Pet Nutrition	545			528			1,628			1,601
Total Net sales	$	4,398		$	4,332		$	13,059		$	12,799
Operating profit
Oral, Personal and Home Care
North America	$	244		$	213		$	686		$	580
Latin America	358			377			1,022			1,100
Europe/South Pacific	216			198			605			560
Asia	174			164			533			474
Africa/Eurasia	65			67			192			197
Total Oral, Personal and Home Care	1,057			1,019			3,038			2,911
Pet Nutrition	138			147			410			440
Corporate	(179		)	(139		)	(784		)	(404		)
Total Operating profit	$	1,016		$	1,027		$	2,664		$	2,947

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, Asia (excluding Japan), Africa/Eurasia and Central Europe).

For the three months ended September 30, 2013, Corporate Operating profit (loss) includes costs of $30 associated with the 2012 Restructuring Program and costs of $3 related to the sale of land in Mexico. For the nine months endedSeptember 30, 2013, Corporate Operating profit (loss) includes costs of $198 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 $14 related to the sale of land in Mexico. For further information regarding the 2012 Restructuring Program, refer to Note 5, Restructuring and Related Implementation Charges. For further information regarding the Venezuela devaluation, refer to Note 15, Venezuela. For further information regarding the competition law matter in France, refer to Note 12, Contingencies. For further information regarding the sale of land in Mexico, refer to Note 4, Acquisitions and Divestitures. For the three months ended September 30, 2012, Corporate Operating profit (loss) included costs of $7 related to the sale of land in Mexico and costs of $3 associated with various business realignment and other cost-saving initiatives. For the nine months endedSeptember 30, 2012, Corporate Operating profit (loss) included costs of $20 related to the sale of land in Mexico and costs of $21 associated with various business realignment and other cost-saving initiatives.