v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
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 four reportable operating segments: North America, Latin America, EMEA and Asia Pacific.

As part of the Strategic Growth and Productivity Program, to further optimize and leverage the operating scale and drive growth within the Europe and Africa/Eurasia regions, the Company realigned its reportable operating segments effective for the quarter ended March 31, 2026. As a result, the Company combined the results of its Europe and Africa/Eurasia (excluding Russia and Belarus) reportable operating segments and its skin health business (previously within the North America reportable operating segment) into a new EMEA reportable operating segment. In conjunction with this realignment, Russia and Belarus, which were previously reported within the Africa/Eurasia reportable operating segment, are reported within the Asia Pacific reportable operating segment. This reportable operating segment realignment did not impact the Company’s historical consolidated results of operations, financial position or cash flows. The Company has recast its historical geographic segment information to conform to the new reporting structure. As a result of this reporting structure realignment, the Company reallocated goodwill of approximately $19 from the EMEA segment to the Asia Pacific segment. In conjunction with this reporting structure realignment, the Company completed an assessment indicating no goodwill impairment existed as a result of this new segment reporting structure.

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, 2025. 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 United States, with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa, the Middle East and Eastern and Central Europe).

Corporate Operating profit (loss) for the three months ended June 30, 2026 included charges resulting from the Strategic Growth and Productivity Program of $129. Corporate Operating profit (loss) for the three months ended June 30, 2025 included acquisition-related costs of $9.

Corporate Operating profit (loss) for the six months ended June 30, 2026 included charges resulting from the Strategic Growth and Productivity Program of $300. 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.
The Company’s Net sales, significant segment expenses and operating profit by reportable segment were:
Three Months Ended June 30, 2026
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$891 $340 $362 $(3)$192 
Latin America1,372 583 377 (6)418 
Europe, Middle East & Africa1,121 405 438 15 263 
Asia Pacific782 291 292 (10)209 
Total Oral, Personal and Home Care4,166 1,082 
Hill's Pet Nutrition1,195 448 476 2 269 
Reconciliation with Total Company Operating Profit
Corporate(335)
Total$5,361 $1,016 
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, 2026
Net salesCost of SalesSelling, general and administrative expenses
Other (income) expense, net (1)
Operating Profit
Reportable Segments
Oral, Personal and Home Care
North America$1,779 $730 $720 $(4)$333 
Latin America2,685 1,137 734 (5)819 
Europe, Middle East & Africa2,247 812 876 29 529 
Asia Pacific1,586 586 581 (12)431 
Total Oral, Personal and Home Care8,297 2,112 
Hill's Pet Nutrition2,389 903 932 5 549 
Reconciliation with Total Company Operating Profit
Corporate(681)
Total$10,686 $1,980 
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, 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$919 $380 $349 $3 $187 
Latin America1,207 527 318 (6)367 
Europe, Middle East & Africa1,083 395 428 19 241 
Asia Pacific746 284 265 (6)202 
Total Oral, Personal and Home Care3,954 997 
Hill's 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$1,823 $737 $700 $3 $384 
Latin America2,350 1,014 633 (13)715 
Europe, Middle East & Africa2,089 762 827 38 463 
Asia Pacific1,484 559 529 (11)407 
Total Oral, Personal and Home Care7,746 1,968 
Hill's 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.
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,
2026202520262025
Net sales
Oral Care44 %43 %44 %44 %
Personal Care18 %18 %17 %17 %
Home Care16 %16 %17 %16 %
Pet Nutrition22 %23 %22 %23 %
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,
2026202520262025
Capital expenditures
Oral, Personal and Home Care
North America$18 $13 $32 $29 
Latin America38 21 77 50 
Europe, Middle East & Africa16 15 26 25 
Asia Pacific18 19 32 32 
Total Oral, Personal and Home Care90 68 167 136 
Hill's Pet Nutrition15 22 37 43 
Corporate23 18 62 53 
Total Capital expenditures$128 $108 $266 $232 

Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Depreciation and amortization
Oral, Personal and Home Care
North America$20 $19 $39 $38 
Latin America30 27 59 51 
Europe, Middle East & Africa26 30 53 58 
Asia Pacific21 19 42 40 
Total Oral, Personal and Home Care97 95 193 187 
Hill's Pet Nutrition32 31 67 63 
Corporate26 25 51 49 
Total Depreciation and amortization$155 $151 $311 $299