Operating Segments

6 Months Ended

Jun. 30, 2013

Operating Segments

Operating Segments

13. Operating Segments

Effective in the first quarter of 2013, the company changed its reportable segments due to a change in its underlying organizational model designed to support the business following the Nalco merger and to facilitate global growth. The company did not operate under the realigned reportable segment structure prior to 2013. The company’s new segment structure focuses on global businesses, with its ten operating units, which are also operating segments, aggregated into four reportable segments as follows:

· Global Industrial consists of the Global Water, Global Food & Beverage, Global Paper and Global Textile Care operating units.

· Global Institutional consists of the Global Institutional, Global Specialty and Global Healthcare operating units.

· Global Energy consists of the Global Energy operating unit.

· Other consists of the Global Pest Elimination and Equipment Care operating units.

For periods prior to its disposition in December 2012, the Vehicle Care operating unit was included within the Other reportable segment within the realigned reportable segment structure.

Consistent with the company’s internal management reporting, the Corporate segment includes amortization specifically from the Nalco merger and Champion acquisition intangible assets and certain integration costs. The Corporate segment also includes special (gains) and charges reported on the Consolidated Statement of Income.

The profitability of the company’s operating units is evaluated by management based on operating income. The company has no intersegment revenues. The international amounts included within each of the company’s four reportable segments are based on translation into U.S. dollars at the fixed currency exchange rates used by management for 2013.

The following tables present net sales and operating income (loss) by reportable segment, reflecting the impact of the segment structure changes discussed above, with the 2012 periods recast under the same structure utilized for the 2013 periods:

	Second Quarter Ended June 30						Six Months Ended June 30
(millions)	2013			2012			2013			2012
Net Sales
Global Industrial	$	1,220.2		$	1,178.7		$	2,360.9		$	2,308.6
Global Institutional	1,054.9			1,028.5			2,029.6			1,979.8
Global Energy	901.0			550.1			1,480.1			1,089.0
Other	180.2			188.9			347.5			364.4
Subtotal at fixed currency rates	3,356.3			2,946.2			6,218.1			5,741.8
Effect of foreign currency translation	(18.5		)	12.5			(8.2		)	27.8
Consolidated	$	3,337.8		$	2,958.7		$	6,209.9		$	5,769.6
Operating Income
Global Industrial	$	157.3		$	134.1		$	274.4		$	232.2
Global Institutional	193.6			180.6			338.9			313.5
Global Energy	131.1			79.1			209.9			161.2
Other	26.2			27.4			46.8			47.3
Corporate	(152.6		)	(95.2		)	(253.5		)	(262.5		)
Subtotal at fixed currency rates	355.6			326.0			616.5			491.7
Effect of foreign currency translation	(3.3		)	0.5			(2.5		)	0.6
Consolidated	$	352.3		$	326.5		$	614.0		$	492.3