SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2019

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

During fiscal 2017, the Company completed the divestiture of four product categories, comprised of 43 of its beauty brands. The transactions included the global salon professional hair care and color, retail hair color, cosmetics and the fragrance businesses, along with select hair styling brands. This business is reported as discontinued operations for the year ended June 30, 2017 (see Note 13).

Under U.S. GAAP, our Global Business Units (GBUs) are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of:


•	Beauty: Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care);


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


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


•	Fabric & Home Care: Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care); and


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

While none of our reportable segments are highly seasonal, components within certain reportable segments, such as Appliances (Grooming) and Personal Health Care (Health), are seasonal.

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, including the impacts from the U.S. Tax Act in fiscal 2018 (see Note 5).

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, certain significant asset impairment charges and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain pension and other postretirement benefit

costs, certain acquisition and divestiture gains, interest and investing income and other financing costs.

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

Our business units are comprised of similar product categories. Nine business units individually accounted for 5% or more of consolidated net sales as follows:



% of Sales by Business Unit ⁽¹⁾
Years ended June 30	2019	2018	2017
Fabric Care	22%	22%	22%
Baby Care	12%	13%	14%
Hair Care	10%	10%	10%
Home Care	10%	10%	10%
Skin and Personal Care	10%	9%	8%
Family Care	9%	8%	8%
Oral Care	8%	8%	8%
Shave Care	8%	8%	9%
Feminine Care	6%	6%	6%
All Other	5%	6%	5%
TOTAL	100%	100%	100%


⁽¹⁾	% of sales by business unit excludes sales held in Corporate.

Net sales and long-lived assets in the United States and internationally were as follows (in billions):



Years ended June 30	2019		2018		2017
NET SALES
United States	$	28.6	$	27.3	$	27.3
International	$	39.1	$	39.5	$	37.8
LONG-LIVED ASSETS ⁽¹⁾
United States	$	10.0	$	9.7	$	8.8
International	$	11.3	$	10.9	$	11.1


⁽¹⁾	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, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15%, 15% and 16% in 2019, 2018 and 2017, respectively. No other customer represents more than 10% of our consolidated net sales.



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	2019	$	12,897	$	3,282		$	2,637		$	272	$	5,362	$	634
	2018	12,406		3,042			2,320			236		4,709		766
	2017	11,429		2,546			1,914			220		4,184		599
GROOMING	2019	6,199		1,777			1,529			429		20,882		367
	2018	6,551		1,801			1,432			447		22,609		364
	2017	6,642		1,985			1,537			433		22,759		341
HEALTH CARE	2019	8,218		1,984			1,519			294		7,708		363
	2018	7,857		1,922			1,283			230		5,254		330
	2017	7,513		1,898			1,280			209		5,194		283
FABRIC & HOME CARE	2019	22,080		4,601			3,518			557		7,620		984
	2018	21,441		4,191			2,708			534		7,295		1,020
	2017	20,717		4,249			2,713			513		6,886		797
BABY, FEMININE & FAMILY CARE	2019	17,806		3,593			2,734			861		9,271		819
	2018	18,080		3,527			2,251			899		9,682		1,016
	2017	18,252		3,868			2,503			874		9,920		1,197
CORPORATE ⁽¹⁾	2019	484		(9,168		)	(7,971		)	411		64,252		180
	2018	497		(1,157		)	(133		)	488		68,761		221
	2017	505		(1,289		)	247			571		71,463		167
TOTAL COMPANY	2019	$	67,684	$	6,069		$	3,966		$	2,824	$	115,095	$	3,347
	2018	66,832		13,326			9,861			2,834		118,310		3,717
	2017	65,058		13,257			10,194			2,820		120,406		3,384

⁽¹⁾

The Corporate reportable segment includes the $8.3 billion one-time, non-cash before-tax ($8.0 billion after-tax) goodwill and intangible asset impairment charge in fiscal 2019. For additional details on goodwill and intangible assets see Note 4. The Corporate reportable segment also includes depreciation and amortization, total assets and capital expenditures of the Beauty Brands business prior to their divestiture in fiscal 2017.