Segment Information

12 Months Ended

Dec. 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 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, Summary of Significant Accounting Policies. 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. 

Approximately 75% 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). Oral, Personal and Home Care sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 11% of the Company's Net sales in 2015. No other customer represents more than 10% of Net sales.

In 2015, Corporate Operating profit (loss) includes charges of $1,084 related to the change in accounting for the Company’s Venezuelan operations, $254 related to the 2012 Restructuring Program, $34 related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of effective devaluations and $14 for a foreign competition law matter and included a gain of $187 on the sale of the Company’s laundry detergent business in the South Pacific. In 2014, Corporate Operating profit (loss) includes charges of $286 related to the 2012 Restructuring Program, $327 related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of effective devaluations and $41 for foreign competition law matters and costs of $4 related to the sale of land in Mexico. In 2013, Corporate Operating profit (loss) included charges of $371 related to the 2012 Restructuring Program, $172 related to the remeasurement of CP Venezuela’s local currency-denominated net monetary assets as a result of a devaluation and $23 for a foreign competition law matter and costs of $18 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 Venezuela, refer to Note 14, Venezuela. For further information regarding the foreign competition law matters, refer to Note 13, Commitments and Contingencies. For further information regarding the sale of land in Mexico and the sale of the Company’s laundry detergent business in the South Pacific, refer to Note 3, Acquisitions and Divestitures.

	2015		2014		2013
Net sales
Oral, Personal and Home Care
North America(1)	$	3,149	$	3,124	$	3,072
Latin America	4,327		4,769		5,012
Europe/South Pacific	2,870		3,406		3,396
Asia	2,478		2,515		2,472
Africa/Eurasia	998		1,208		1,257
Total Oral, Personal and Home Care	13,822		15,022		15,209
Pet Nutrition(2)	2,212		2,255		2,211
Total Net sales	$	16,034	$	17,277	$	17,420

_________

⁽¹⁾  Net sales in the U.S. for Oral, Personal and Home Care were $2,896, $2,835 and $2,771 in 2015, 2014 and 2013, respectively.

⁽²⁾  Net sales in the U.S. for Pet Nutrition were $1,223, $1,149 and $1,116 in 2015, 2014 and 2013, respectively.

	2015			2014			2013
Operating profit
Oral, Personal and Home Care
North America	$	974		$	926		$	927
Latin America	1,209			1,279			1,385
Europe/South Pacific	750			877			805
Asia	753			736			698
Africa/Eurasia	178			235			268
Total Oral, Personal and Home Care	3,864			4,053			4,083
Pet Nutrition	612			592			563
Corporate	(1,687		)	(1,088		)	(1,090		)
Total Operating profit	$	2,789		$	3,557		$	3,556

	2015		2014		2013
Capital expenditures
Oral, Personal and Home Care
North America	$	207	$	136	$	54
Latin America	110		205		235
Europe/South Pacific	42		78		74
Asia	119		147		123
Africa/Eurasia	12		14		11
Total Oral, Personal and Home Care	490		580		497
Pet Nutrition	34		40		45
Corporate	167		137		128
Total Capital expenditures	$	691	$	757	$	670

	2015		2014		2013
Depreciation and amortization
Oral, Personal and Home Care
North America	$	47	$	43	$	51
Latin America	88		93		93
Europe/South Pacific	72		84		85
Asia	94		78		72
Africa/Eurasia	8		10		11
Total Oral, Personal and Home Care	309		308		312
Pet Nutrition	52		52		51
Corporate	88		82		76
Total Depreciation and amortization	$	449	$	442	$	439

	2015		2014		2013
Identifiable assets
Oral, Personal and Home Care
North America	$	2,622	$	2,326	$	2,301
Latin America	2,314		3,693		4,202
Europe/South Pacific	3,457		3,836		3,978
Asia	1,882		1,903		1,794
Africa/Eurasia	476		510		557
Total Oral, Personal and Home Care	10,751		12,268		12,832
Pet Nutrition	1,006		1,051		1,087
Corporate(1)	201		140		66
Total Identifiable assets(2)	$	11,958	$	13,459	$	13,985

____________

⁽¹⁾  In 2015, Corporate identifiable assets primarily consist of derivative instruments (67%) and investments in equity securities (20%). In 2014, Corporate identifiable assets primarily consist of derivative instruments (62%) and investments in equity securities (22%). In 2013, Corporate identifiable assets primarily consist of derivative instruments (32%) and investments in equity securities (41%). 

⁽²⁾  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 $7,420, $8,086 and $8,248 in 2015, 2014 and 2013, respectively.