Segments

12 Months Ended

Dec. 31, 2011

Segments [Abstract]

Segments

19. Segments

Segment Information

The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division ("SPD"). 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. The Company had 50% ownership interests in Armand and ArmaKleen as of December 31, 2011. The Company's equity in earnings of Armand and ArmaKleen for the twelve months ended December 31, 2011, 2010 and 2009 is included in the Corporate segment. On September 22, 2011, the Company formed an operating joint venture, Natronx, in which it has a one-third ownership interest. The Company's equity in Natronx's net loss for the period ended December 31, 2011 is also included in the Corporate segment.

Some of the 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, 2011.

(In millions)	Consumer Domestic			Consumer International			SPD			Corporate(1)			As Reported
Net sales
2011	$	1,979.1		$	509.1		$	261.1		$	0.0		$	2,749.3
2010		1,886.1			444.0			259.1			0.0			2,589.2
2009		1,881.7			393.7			245.5			0.0			2,520.9
Gross profit
2011		936.9			238.7			64.2			(25.3	)		1,214.5
2010		913.2			211.9			59.3			(26.6	)		1,157.8
2009		890.8			183.7			58.3			(31.8	)		1,101.0
Marketing Expenses
2011		274.9			75.9			3.3			0.0			354.1
2010		265.6			69.8			2.6			0.0			338.0
2009		287.0			64.3			2.3			0.0			353.6
Selling, General and Administrative Expenses
2011		269.5			92.8			30.8			(25.3	)		367.8
2010		279.5			85.5			36.4			(26.6	)		374.8
2009		270.1			77.5			38.7			(31.8	)		354.5
Patent Litigation Settlement, net
2011		0.0			0.0			0.0			0.0			0.0
2010		0.0			0.0			0.0			0.0			0.0
2009		(20.0	)		0.0			0.0			0.0			(20.0	)
Income from Operations
2011		392.5			70.0			30.1			0.0			492.6
2010		368.1			56.6			20.3			0.0			445.0
2009		353.6			41.9			17.4			0.0			412.9
Equity in Earnings of Affiliates
2011		0.0			0.0			0.0			10.0			10.0
2010		0.0			0.0			0.0			5.0			5.0
2009		0.0			0.0			0.0			12.1			12.1
Interest Expense(2)
2011		7.0			1.2			0.5			0.0			8.7
2010		23.0			3.5			1.3			0.0			27.8
2009		30.5			3.6			1.5			0.0			35.6
Investment Earnings(2)
2011		1.5			0.3			0.1			0.0			1.9
2010		0.5			0.1			0.0			0.0			0.6
2009		1.1			0.1			0.1			0.0			1.3
Other Income & Expense(2)
2011		(1.0	)		(0.2	)		0.0			0.0			(1.2	)
2010		(3.7	)		(0.6	)		(0.2	)		0.0			(4.5	)
2009		1.3			0.1			0.1			0.0			1.5
Income Before Income Taxes
2011		386.0			68.9			29.7			10.0			494.6
2010		341.9			52.6			18.8			5.0			418.3
2009		325.6			38.6			16.0			12.0			392.2
Identifiable Assets
2011		2,437.9			476.5			132.2			71.0			3,117.6
2010		2,386.2			330.6			147.8			80.6			2,945.2
2009		2,494.9			350.0			179.5			94.0			3,118.4
Capital Expenditures
2011		57.4			12.2			7.0			0.0			76.6
2010		54.7			6.1			3.0			0.0			63.8
2009		125.2			4.6			5.6			0.0			135.4
Depreciation & Amortization
2011		61.4			8.1			5.7			1.9			77.1
2010		53.3			8.5			6.2			3.6			71.6
2009		67.9			7.0			6.5			4.0			85.4

(1) The Corporate segment reflects the following:

(A) The administrative costs of the production planning and logistics functions are included in segment Selling, General and Administrative expenses but are elements of Cost of Sales in the Company's Consolidated Statements of Income. Such amounts were $25.3 million, $26.6 million, and $31.8 million for 2011, 2010 and 2009, respectively.

(B) Equity in earnings (loss) of affiliates from Armand, Armakleen and Natronx.

(C) Corporate assets include notes receivable, domestic deferred income taxes, deferred compensation investments and the Company's investment in unconsolidated affiliates.

(2) In determining Income before Income Taxes, interest expense, investment earnings, and other income (expense) were allocated to the segments based upon each segment's relative operating profit.

Other than the differences noted in footnotes ⁽¹⁾ and ⁽²⁾ above, the accounting policies followed by each of the segments, including intersegment transactions, are substantially consistent with the accounting policies set forth in Note 1.

Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $5.2 million, $3.6 million and $3.0 million for the twelve months ended December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

Product line revenues from external customers for each of the three years were as follows:

(In millions)	2011		2010		2009
Household Products	$	1,295.0	$	1,207.4	$	1,196.4
Personal Care Products		684.1		678.7		685.3
Total Consumer Domestic		1,979.1		1,886.1		1,881.7
Total Consumer International		509.1		444.0		393.7
Total SPD		261.1		259.1		245.5
Total Consolidated Net Sales	$	2,749.3	$	2,589.2	$	2,520.9

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

Geographic Information

Approximately 79%, 79% and 81% of the net sales reported in the accompanying consolidated financial statements in 2011, 2010 and 2009, respectively were to customers in the United States. Approximately 96%, 96% and 95% of long-lived assets were located in the U.S. at December 31, 2011, 2010 and 2009, respectively. Other than the United States, no one country accounts for more than 7% of consolidated net sales and 3% of total assets.

Customers

A group of three customers accounted for approximately 33% of consolidated net sales in 2011, of which a single customer (Wal-Mart Stores, Inc and its affiliates) accounted for approximately 23%. A group of three customers accounted for approximately 33% of consolidated net sales in 2010, of which Wal-Mart and its affiliates accounted for approximately 23%. A group of three customers accounted for approximately 32% of consolidated net sales in 2009 of which Wal-Mart and its affiliates accounted for approximately 22%.