Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. 

Effective April 1, 2016, the operations of the Oral, Personal and Home Care product segment are now managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.

Through March 31, 2016, the Oral, Personal and Home Care product segment included the North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia geographic operating segments. As a result of management changes effective April 1, 2016, the Company realigned the geographic structure of its Europe/South Pacific and Asia reportable operating segments. Management responsibility for the South Pacific operations was transferred from Europe/South Pacific management to Asia management. Accordingly, commencing with the Company’s financial reporting for the quarter ended June 30, 2016, the results of the South Pacific operations are reported in the Asia Pacific reportable operating segment. The Company has recast its historical geographic segment information to conform to the new reporting structure. These changes have no impact on the Company’s historical consolidated financial position, results of operations or cash flows.

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, 2015. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, 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						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Net sales
Oral, Personal and Home Care
North America	$	793		$	780		$	1,593		$	1,569
Latin America	938			1,126			1,786			2,213
Europe	606			602			1,194			1,212
Asia Pacific	697			752			1,440			1,544
Africa/Eurasia	239			254			470			508
Total Oral, Personal and Home Care	3,273			3,514			6,483			7,046
Pet Nutrition	572			552			1,124			1,090
Total Net sales	$	3,845		$	4,066		$	7,607		$	8,136
Operating profit
Oral, Personal and Home Care
North America	$	250		$	223		$	489		$	441
Latin America	284			321			531			629
Europe	138			147			279			294
Asia Pacific	219			217			438			447
Africa/Eurasia	45			45			88			84
Total Oral, Personal and Home Care	936			953			1,825			1,895
Pet Nutrition	162			146			317			293
Corporate	(154		)	(167		)	(331		)	(396		)
Total Operating profit	$	944		$	932		$	1,811		$	1,792

Approximately 75% of the Company’s Net sales are generated from markets outside the U.S., with approximately 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 endedJune 30, 2016, Corporate Operating profit (loss) includes charges of $59 resulting from the 2012 Restructuring Program. For the six months endedJune 30, 2016, Corporate Operating profit (loss) includes charges of $114 resulting from the 2012 Restructuring Program.

For the three months endedJune 30, 2015, Corporate Operating profit (loss) included charges of $52 resulting from the 2012 Restructuring Program and a charge of $16 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation. For the six months endedJune 30, 2015, Corporate Operating profit (loss) included charges of $152 resulting from the 2012 Restructuring Program and a charge of $16 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation.

For further information regarding the 2012 Restructuring Program, refer to Note 5, Restructuring and Related Implementation Charges.