v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. 

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

In connection with management changes, the Company realigned the reporting structure of its skin health business effective July 1, 2024. Accordingly, commencing with the quarter ended September 30, 2024, the results of the skin health business previously reported within the Europe reportable operating segment are reported with the other skin health businesses in the North America reportable operating segment, with no impact on the Company’s consolidated results of operations or financial position. The Company recast its historical geographic segment information to conform to the new reporting structure in 2024.

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 Chairman of the Board, President and Chief Executive Officer has been determined to be the Company’s Chief Operating Decision Maker and he uses Operating Profit to assess performance and to allocate resources for each of the reportable operating segments in the budgeting and forecasting process. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and therefore such information has not been presented.

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, 2024. 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 charges 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.
Approximately two-thirds of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe).

Corporate Operating profit (loss) for the three months ended June 30, 2025 included acquisition-related costs of $9. Corporate Operating profit (loss) for the three months ended June 30, 2024 included charges resulting from the 2022 Global Productivity Initiative of $27.

Corporate Operating profit (loss) for the six months ended June 30, 2025 included charges resulting from the ERISA litigation matter of $15 and acquisition-related costs of $9. Corporate Operating profit (loss) for the six months ended June 30, 2024 included charges resulting from the 2022 Global Productivity Initiative of $63.

The Company’s net sales, significant segment expenses and operating profit, by reportable segment were:
Three Months Ended June 30, 2025
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$1,027 $403 $417 $13 $194 
Latin America1,207 527 318 (6)367 
Europe738 275 272 7 184 
Asia Pacific687 265 242 (7)187 
Africa/Eurasia295 117 110 3 65 
Total Oral, Personal and Home Care3,954 997 
Pet Nutrition1,157 462 430 — 264 
Reconciliation with Total Company Operating Profit
Corporate(181)
Total$5,110 $1,080 
Note: Table may not sum due to rounding.
(1) Other (income) expense, net primarily includes amortization of intangible assets and equity income.
Six Months Ended June 30, 2025
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$2,025 $780 $832 $23 $390 
Latin America2,350 1,014 633 (13)715 
Europe1,427 532 526 14 356 
Asia Pacific1,378 526 481 (15)385 
Africa/Eurasia566 221 216 7 122 
Total Oral, Personal and Home Care7,746 1,968 
Pet Nutrition2,275 899 852 1 523 
Reconciliation with Total Company Operating Profit
Corporate(334)
Total$10,021 $2,156 
Note: Table may not sum due to rounding.
(1) Other (income) expense, net primarily includes amortization of intangible assets and equity income.

Three Months Ended June 30, 2024
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$1,037 $396 $426 $3 $213 
Latin America1,267 504 353 (6)417 
Europe685 258 251 7 169 
Asia Pacific682 260 232 (6)195 
Africa/Eurasia273 105 103 1 64 
Total Oral, Personal and Home Care3,944 1,058 
Pet Nutrition1,114 459 420 1 235 
Reconciliation with Total Company Operating Profit
Corporate(201)
Total$5,058 $1,092 
Note: Table may not sum due to rounding.
(1) Other (income) expense, net primarily includes amortization of intangible assets and equity income.
Six Months Ended June 30, 2024
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$2,073 $786 $845 $15 $427 
Latin America2,520 1,005 698 (5)822 
Europe1,358 525 497 15 321 
Asia Pacific1,408 544 474 (13)402 
Africa/Eurasia549 211 202 6 130 
Total Oral, Personal and Home Care7,908 2,102 
Pet Nutrition2,216 941 833 10 433 
Reconciliation with Total Company Operating Profit
Corporate(397)
Total$10,124 $2,139 
Note: Table may not sum due to rounding.
(1) Other (income) expense, net primarily includes amortization of intangible assets and equity income.

The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:

Three Months EndedSix Months Ended
 June 30,June 30,
 2025202420252024
Net sales
Oral Care43 %42 %44 %43 %
Personal Care18 %19 %17 %18 %
Home Care16 %17 %16 %17 %
Pet Nutrition23 %22 %23 %22 %
Total Net sales100 %100 %100 %100 %
Capital expenditures and depreciation and amortization expense by segment were:
Three Months EndedSix Months Ended
 June 30,June 30,
 2025202420252024
Capital expenditures  
Oral, Personal and Home Care 
North America$14 $13 $30 $21 
Latin America21 25 50 46 
Europe12 13 20 20 
Asia Pacific19 10 32 19 
Africa/Eurasia2 1 4 3 
Total Oral, Personal and Home Care68 62 136 109 
Pet Nutrition22 31 43 84 
Corporate18 24 53 50 
Total Capital expenditures$108 $117 $232 $243 

Three Months EndedSix Months Ended
 June 30,June 30,
 2025202420252024
Depreciation and amortization  
Oral, Personal and Home Care  
North America$30 $32 $60 $63 
Latin America27 26 51 53 
Europe16 16 32 32 
Asia Pacific20 20 40 40 
Africa/Eurasia2 2 4 4 
Total Oral, Personal and Home Care95 96 187 192 
Pet Nutrition31 37 63 67 
Corporate25 24 49 48 
Total Depreciation and amortization$151 $157 $299 $307