SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2014

Notes to Financial Statements [Abstract]

SEGMENT INFORMATION

NOTE 12

SEGMENT INFORMATION

Effective July 1, 2013, we reorganized our Global Business Unit (GBU) structure, which resulted in changes to our reporting segments. We reorganized our GBUs into four industry-based sectors, comprised of 1) Global Beauty, 2) Global Health and Grooming, 3) Global Fabric and Home Care and 4) Global Baby, Feminine and Family Care. In April 2014, we announced our decision to exit our Pet Care business. On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America and other selected markets. The Company is pursuing alternate plans to sell its Pet Care business in the other markets, primarily the European Union countries. This GBU is reported as a discontinued operation for all periods presented.

Under U.S. GAAP, the remaining GBUs underlying the four sectors are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric Care and Home Care and 5) Baby, Feminine and Family Care. As a result of the organizational changes, Feminine Care transitioned from Health Care to Baby, Feminine and Family Care for all periods presented. Our five reportable segments are comprised of:

• Beauty: Beauty Care (Antiperspirant and Deodorant, Cosmetics, Personal Cleansing, Skin Care); Hair Care and Color; Prestige (SKII, Fragrances); Salon Professional;

• Grooming: Shave Care (Blades and Razors, Pre- and Post-Shave Products); Appliances;

• Health Care: Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Other Personal Health Care, Vitamins/Minerals/Supplements); Oral Care (Toothbrush, Toothpaste, Other Oral Care);

• Fabric Care and Home Care: Fabric Care (Laundry Additives, Fabric Enhancers, Laundry Detergents); Home Care (Air Care, Dish Care, Surface Care); Personal Power (Batteries); Professional;

• Baby, Feminine and Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Feminine Care, Incontinence); Family Care (Paper Towels, Tissues, Toilet Paper).

The accounting policies of the segments are generally the same as those described in Note 1. Differences between these policies and U.S. GAAP primarily reflect income taxes, which are reflected in the segments using applicable blended statutory rates. Adjustments to arrive at our effective tax rate are included in Corporate. Previously, we also had a difference in the treatment of certain unconsolidated investees. Certain unconsolidated investees that are managed as integral parts of our businesses were reflected as consolidated subsidiaries in management reporting and segment results, with full recognition of the individual income statement line items through before-tax earnings. Eliminations to adjust these line items to U.S. GAAP were included in Corporate. In determining after-tax earnings for the businesses, we eliminated the share of earnings applicable to other ownership interests, in a manner similar to noncontrolling interest, and applied statutory tax rates. During the final quarter of fiscal 2014, we changed our management accounting for unconsolidated investees within our segments, which had no impact to our consolidated financial statements. Pursuant to this change, segment results no longer include full recognition of the individual income statement line items of unconsolidated investees, and resulting eliminations of such amounts are no longer included in corporate. All periods have been adjusted to reflect this change.

Corporate includes certain operating and non-operating activities that are not reflected in the operating results used internally to measure and evaluate the businesses, as well as items to adjust management reporting principles to U.S. GAAP. Operating activities in Corporate include the results of incidental businesses managed at the corporate level. Operating elements also include certain employee benefit costs, the costs of certain restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization, and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain acquisition and divestiture gains and interest and investing income.

Total assets for the reportable segments include those assets managed by the reportable segment, primarily inventory, fixed assets and intangible assets. Other assets, primarily including cash, accounts receivable, investment securities and goodwill, are included in Corporate.

Our business units are comprised of similar product categories. In 2014, 2013 and 2012, nine business units individually accounted for 5% or more of consolidated net sales as follows:

	% of Sales by Business Unit
Years ended June 30	2014	2013	2012
Fabric Care	20%	20%	20%
Baby Care	13%	13%	13%
Hair Care and Color	11%	11%	12%
Shave Care	9%	9%	9%
Beauty Care	7%	7%	7%
Home Care	7%	7%	7%
Family Care	7%	7%	6%
Oral Care	7%	6%	6%
Feminine Care	5%	5%	5%
All Other	14%	15%	15%
Total	100%	100%	100%

The Company had net sales in the U.S. of $29.4 billion, $29.2 billion and $28.4 billion for the years ended June 30, 2014, 2013 and 2012, respectively. Long-lived assets in the U.S. totaled $8.7 billion and $9.1 billion as of June 30, 2014 and 2013, respectively. Long-lived assets consists of property, plant and equipment. No other country's net sales or long-lived assets exceed 10% of the Company totals.

Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 14% of consolidated net sales in 2014, 2013 and 2012.

Global Segment Results		Net Sales		Earnings /(Loss) from Continuing Operations Before Income Taxes			Net Earnings / (Loss) from Continuing Operations			Depreciation and Amortization		Total Assets		Capital Expenditures
BEAUTY	2014	$	19,507	$	3,530		$	2,739		$	394	$	8,576	$	502
	2013	19,956		3,215			2,474			375		8,396		541
	2012	20,318		3,196			2,390			379		8,357		569
GROOMING	2014	8,009		2,589			1,954			576		23,767		369
	2013	8,038		2,458			1,837			603		23,971		378
	2012	8,339		2,395			1,807			623		24,518		392
HEALTH CARE	2014	7,798		1,597			1,083			199		5,879		253
	2013	7,684		1,582			1,093			191		5,933		248
	2012	7,235		1,520			1,022			186		5,832		251
FABRIC CARE AND HOME CARE	2014	26,060		4,678			3,039			625		11,384		1,154
	2013	25,862		4,757			3,089			639		11,231		1,064
	2012	25,580		4,485			2,816			627		10,647		965
BABY, FEMININE AND FAMILY CARE	2014	20,950		4,310			2,940			908		10,946		1,317
	2013	20,479		4,507			3,047			837		10,926		1,560
	2012	19,714		4,271			2,927			753		9,203		1,495
CORPORATE(1)	2014	738		(1,819		)	(48		)	439		83,714		253
	2013	562		(1,827		)	(239		)	337		78,806		217
	2012	820		(3,339		)	(1,812		)	636		73,687		292
TOTAL COMPANY	2014	83,062		14,885			11,707			3,141		144,266		3,848
	2013	82,581		14,692			11,301			2,982		139,263		4,008
	2012	82,006		12,528			9,150			3,204		132,244		3,964

⁽¹⁾  The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Snacks business prior to its divestiture effective May 31, 2012 and of the Pet Care business.