Segments of Business (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Reportable Business Segments

The Company operates the business through the following three reportable business segments:

Reportable Segments	Product Categories
Self Care	Cough, Cold, and Allergy
	Pain Care
	Other Self Care (Digestive Health, Smoking Cessation, Eye Care, and Other)
Skin Health and Beauty	Face and Body Care
	Hair, Sun, and Other
Essential Health	Oral Care
	Baby Care
	Other Essential Health (Women’s Health, Wound Care, and Other)

Schedule of Product Categories as a Percent of Net Sales

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, 2024		April 2, 2023
Cough, Cold, and Allergy	15	%	14	%
Pain Care	13		14
Other Self Care	16		14
Face and Body Care	18		20
Hair, Sun, and Other	9		9
Oral Care	10		9
Baby Care	9		9
Other Essential Health	10		11
Total	100	%	100	%

Schedule of Segment Net Sales and 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, 2024		April 2, 2023
Self Care	$	1,698	$	1,640
Skin Health and Beauty	1,054		1,111
Essential Health	1,142		1,101
Total net sales	$	3,894	$	3,852

	Segment Adjusted Operating Income
	Fiscal Three Months Ended
(Dollars in Millions)	March 31, 2024		April 2, 2023
Self Care	$	606	$	582
Skin Health and Beauty	149		150
Essential Health	256		210
Segment adjusted operating income	$	1,011	$	942
Reconciliation to Income before taxes
Less:
Depreciation	75		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), net	78		(17)
General corporate/unallocated expenses	87		69
Operating income	$	550	$	640
Other expense, net	28		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.