SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2020

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

Under U.S. GAAP, our operating segments 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, leased assets and goodwill, are included in Corporate.

Our operating segments are comprised of similar product categories. Operating segments that individually accounted for 5% or more of consolidated net sales are as follows:


% of Net sales by operating segment ⁽¹⁾
Years ended June 30	2020	2019	2018
Fabric Care	22%	22%	22%
Baby Care	11%	12%	13%
Home Care	11%	10%	10%
Skin and Personal Care	10%	10%	9%
Hair Care	9%	10%	10%
Family Care	9%	9%	8%
Oral Care	8%	8%	8%
Shave Care	7%	8%	8%
Feminine Care	6%	6%	6%
Personal Health Care	5%	4%	4%
All Other	2%	1%	2%
TOTAL	100%	100%	100%

⁽¹⁾ % of Net sales by operating segment 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	2020		2019		2018
NET SALES
United States	$	31.3	$	28.6	$	27.3
International	$	39.7	$	39.1	$	39.5
LONG-LIVED ASSETS ⁽¹⁾
United States	$	9.9	$	10.0	$	9.7
International	$	10.8	$	11.3	$	10.9

⁽¹⁾ Long-lived assets consists of property, plant and equipment.

No country, other than the United States, exceeds 10% of the consolidated net sales or long-lived assets.

Our largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15% in 2020, 2019 and 2018. No other customer represents more than 10% of our consolidated net sales.


Global Segment Results		Net Sales		Earnings/(Loss) Before Income Taxes		Net Earnings/(Loss)		Depreciation and Amortization		Total Assets		Capital Expenditures
BEAUTY	2020	$	13,359	$	3,437	$	2,737	$	320	$	5,531	$	397
	2019	12,897		3,282		2,637		272		5,362		634
	2018	12,406		3,042		2,320		236		4,709		766
GROOMING	2020	6,069		1,613		1,329		406		20,589		305
	2019	6,199		1,777		1,529		429		20,882		367
	2018	6,551		1,801		1,432		447		22,609		364
HEALTH CARE	2020	9,028		2,156		1,652		350		7,726		338
	2019	8,218		1,984		1,519		294		7,708		363
	2018	7,857		1,922		1,283		230		5,254		330
FABRIC & HOME CARE	2020	23,735		5,426		4,154		605		7,745		887
	2019	22,080		4,601		3,518		557		7,620		984
	2018	21,441		4,191		2,708		534		7,295		1,020
BABY, FEMININE & FAMILY CARE	2020	18,364		4,534		3,465		839		8,628		764
	2019	17,806		3,593		2,734		861		9,271		819
	2018	18,080		3,527		2,251		899		9,682		1,016
CORPORATE ⁽¹⁾	2020	395		(1,332)		(234)		493		70,481		382
	2019	484		(9,168)		(7,971)		411		64,252		180
	2018	497		(1,157)		(133)		488		68,761		221
TOTAL COMPANY	2020	$	70,950	$	15,834	$	13,103	$	3,013	$	120,700	$	3,073
	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

(1) The Corporate reportable segment includes the $8.3 billion 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.