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Segments of Business
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segments of Business Segments of Business
The Company historically operated as part of J&J and reported under J&J’s segment structure. Prior to the Separation, the Company’s CODM was J&J’s Consumer Health Segment Operating Committee. As the Company transitioned into an independent, publicly traded company, the Company’s CODM was determined to be the chief executive officer.

Segment profit is based on Operating income, excluding depreciation and amortization, Separation-related costs, restructuring and operating model optimization initiatives, the impact of the conversion of stock-based awards, issuance of Founder Shares, Other operating expense (income), net, and unallocated general corporate administrative expenses (referred to herein as “Segment adjusted operating income”), as management excludes these items in assessing segment financial performance. General corporate/unallocated expenses, which include expenses related to treasury, legal operations and certain other expenses, along with gains and losses related to the overall management of the Company, are not allocated to the segments. In assessing segment performance and managing operations, management does not review segment assets.
The Company operates the business through the following three reportable business segments:

Reportable SegmentsProduct Categories
Self Care
Cough, Cold, and Allergy
Pain Care
Other Self Care (Digestive Health, Smoking Cessation, Eye Care, and Other)
Skin Health and BeautyFace and Body Care
Hair, Sun, and Other
Essential HealthOral Care
Baby Care
Other Essential Health (Women’s Health, Wound Care, and Other)

The Company’s product categories as a percentage of Net sales for the fiscal three months ended March 31, 2024 and April 2, 2023 were as follows:

Fiscal Three Months Ended
Product Categories
March 31, 2024April 2, 2023
Cough, Cold, and Allergy15 %14 %
Pain Care 13 14 
Other Self Care 16 14 
Face and Body Care18 20 
Hair, Sun, and Other
9 9 
Oral Care10 9 
Baby Care9 9 
Other Essential Health10 11 
Total100 %100 %
Segment Net Sales and Segment Adjusted Operating Income

Segment net sales and Segment adjusted operating income for the fiscal three months ended March 31, 2024 and April 2, 2023 were as follows:

Segment Net Sales
Fiscal Three Months Ended
(Dollars in Millions)March 31, 2024April 2, 2023
Self Care$1,698 $1,640 
Skin Health and Beauty1,054 1,111 
Essential Health1,142 1,101 
Total net sales
$3,894 $3,852 

Segment Adjusted Operating Income
Fiscal Three Months Ended
(Dollars in Millions)March 31, 2024April 2, 2023
Self Care$606 $582 
Skin Health and Beauty149 150 
Essential Health256 210 
Segment adjusted operating income
$1,011 $942 
Reconciliation to Income before taxes
Less:
Depreciation75 71 
Amortization
74 81 
Separation-related costs
67 98 
Restructuring and operating model optimization initiatives
50 — 
Conversion of stock-based awards(1)
22 — 
Founder Shares(2)
8 — 
Other operating expense (income), net78 (17)
General corporate/unallocated expenses87 69 
Operating income$550 $640 
Other expense, net28 30 
Interest expense, net
95 1 
Income before taxes$427 $609 
(1) Segment adjusted operating income excludes the impact of the conversion of stock-based awards that occurred on August 23, 2023. The adjustment represents the net impact of the gain on reversal of previously recognized stock-based compensation expense, offset by stock-based compensation expense recognized in the fiscal three months ended March 31, 2024 relating to employee services provided prior to the Separation.
(2) On August 25, 2023, the Company’s Compensation & Human Capital Committee approved equity grants to individuals employed by Kenvue as of October 2, 2023 (the “Founder Shares”). On October 2, 2023, the Founder Shares were granted to all Kenvue employees in the form of stock options and PSUs to executive officers and either stock options and PSUs or RSUs to non-executive individuals.