Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segments

17.Segments

Segment Information

The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division. These segments are determined based on differences in the nature of products and organizational and ownership structures. The Company also has a Corporate segment.

Segment revenues are derived from the sale of the following products:

Segment	Products
Consumer Domestic	Household and personal care products
Consumer International	Primarily personal care products
SPD	Specialty chemical products

The Corporate segment income consists of equity in earnings of affiliates. As of December 31, 2023, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively. The Company’s equity in earnings of Armand and ArmaKleen, totaling $8.7, $12.3, and $9.4 for the three years ending December 31, 2023, 2022 and 2021, respectively, are included in the Corporate segment.

Certain subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below.

The following table presents selected financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2023:

	Consumer		Consumer
	Domestic		International		SPD		Corporate(1)			As Reported
Net sales
2023	$	4,571.2	$	975.7	$	321.0	$	0.0		$	5,867.9
2022		4,131.0		896.1		348.5		0.0			5,375.6
2021		3,941.9		912.2		336.0		0.0			5,190.1
Gross profit
2023		2,137.2		407.0		104.7		(60.4	)		2,588.5
2022		1,794.1		372.4		117.8		(34.3	)		2,250.0
2021		1,795.8		402.1		112.7		(47.1	)		2,263.5
Marketing Expenses
2023		509.5		127.7		4.1		0.0			641.3
2022		412.9		117.7		4.6		0.0			535.2
2021		442.1		131.1		4.5		0.0			577.7
Selling, General and Administrative Expenses
2023		698.0		175.1		77.1		(60.4	)		889.8
2022		882.1		208.5		60.7		(34.3	)		1,117.0
2021		445.3		135.7		72.8		(47.1	)		606.7
Income from Operations
2023		929.7		104.2		23.5		0.0			1,057.4
2022		499.1		46.2		52.5		0.0			597.8
2021		908.4		135.3		35.4		0.0			1,079.1
Equity in Earnings of Affiliates
2023		0.0		0.0		0.0		8.7			8.7
2022		0.0		0.0		0.0		12.3			12.3
2021		0.0		0.0		0.0		9.4			9.4
Income Before Income Taxes
2023		842.7		94.8		21.2		8.7			967.4
2022		427.3		38.8		44.9		12.3			523.3
2021		861.4		127.3		33.6		9.4			1,031.7
Identifiable Assets
2023		7,011.4		1,106.1		326.8		124.9			8,569.2
2022		6,846.9		1,060.5		332.9		105.3			8,345.6
2021		6,354.5		1,192.9		332.7		116.4			7,996.5
Capital Expenditures
2023		190.0		20.4		13.1		0.0			223.5
2022		159.1		10.0		9.7		0.0			178.8
2021		100.3		8.4		10.1		0.0			118.8
Depreciation & Amortization
2023		182.7		27.7		13.6		1.2			225.2
2022		172.1		30.1		13.8		3.0			219.0
2021		170.0		31.1		15.4		2.6			219.1

(1)Corporate reflects the following:

(A) The administrative costs of the production planning and logistics functions which are elements of Cost of Sales in the Company’s Consolidated Statements of Income but are allocated to the operating segments in Selling, General and Administrative expenses to determine operating segment income before income taxes. Such amounts were $60.4, $34.3, and $47.1 for 2023, 2022 and 2021, respectively. The increase in 2023 compared to 2022 is primarily due to higher incentive compensation costs.

(B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2023, 2022 and 2021.

(C) Corporate assets include deferred compensation investments and the Company's investment in unconsolidated affiliates.

Other than the differences noted in the footnote above, the accounting policies followed by each of the segments, including intersegment transactions, are substantially consistent with the accounting policies described in Note 1.

Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table above, were $17.0, $15.1 and $10.8 for the twelve months ended December 31, 2023, 2022 and 2021, respectively.

Product line revenues from external customers for each of the three years ended December 31, 2023, 2022 and 2021 were as follows:

	2023		2022		2021
Household Products	$	2,484.1	$	2,272.0	$	2,103.0
Personal Care Products		2,087.1		1,859.0		1,838.9
Total Consumer Domestic		4,571.2		4,131.0		3,941.9
Total Consumer International		975.7		896.1		912.2
Total SPD		321.0		348.5		336.0
Total Consolidated Net Sales	$	5,867.9	$	5,375.6	$	5,190.1

Household Products include laundry, deodorizing, and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin care products, hair care products and gummy dietary supplements.

Geographic Information

Approximately 83%, 83% and 82% of the net sales reported in the accompanying consolidated financial statements in 2023, 2022 and 2021, respectively, were to customers in the U.S. Approximately 96%, 97% and 96% of long-lived assets were located in the U.S. at December 31, 2023, 2022 and 2021, respectively. Other than the U.S., no one country accounts for more than 5% of consolidated net sales and 5% of total assets.

Customers

A group of four customers accounted for approximately 44% and 42% of consolidated net sales in 2023 and 2022, respectively. A group of three customers accounted for approximately 37% of consolidated net sales in 2021, of which a single customer (Walmart Inc. and its affiliates) accounted for approximately 23%, 24% and 24% in 2023, 2022 and 2021, respectively.