Segment Information

3 Months Ended

Mar. 31, 2015

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/South Pacific, Asia 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, 2014. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock unit 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 operating segments.

Net sales and Operating profit by segment were as follows:

	Three Months Ended
	March 31,
	2015			2014
Net sales
Oral, Personal and Home Care
North America	$	789		$	785
Latin America	1,087			1,152
Europe/South Pacific	741			865
Asia	661			672
Africa/Eurasia	254			298
Total Oral, Personal and Home Care	3,532			3,772
Pet Nutrition	538			553
Total Net sales	$	4,070		$	4,325
Operating profit
Oral, Personal and Home Care
North America	$	218		$	216
Latin America	308			290
Europe/South Pacific	184			217
Asia	193			193
Africa/Eurasia	39			59
Total Oral, Personal and Home Care	942			975
Pet Nutrition	147			144
Corporate	(229		)	(485		)
Total Operating profit	$	860		$	634

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 endedMarch 31, 2015, Corporate Operating profit (loss) includes charges of $100 related to the 2012 Restructuring Program. For the three months endedMarch 31, 2014, Corporate Operating profit (loss) included charges of $102 related to the 2012 Restructuring Program, a charge of $266 related to the 2014 Venezuela Remeasurements and costs of $1 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 Venezuela, refer to Note 14, Venezuela. For further information regarding the sale of land in Mexico, refer to Note 4, Acquisitions and Divestitures.