17.

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 (losses) of affiliates. The Company had 50% ownership interests in Armand and ArmaKleen and a one-third ownership interest in Natronx as of June 30, 2012. The Company’s equity in earnings of Armand and ArmaKleen for the three and six months ended June 30, 2012 and July 1, 2011, and the equity in losses of Natronx for the three and six months ended June 30, 2012, are 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.

Segment Net Sales and Income before Income Taxes for the three and six month periods ended June 30, 2012 and July 1, 2011 were as follows:


(In millions)	Consumer Domestic		Consumer International		SPD		Corporate		Total
Net Sales⁽¹⁾
Second Quarter 2012	$	506.5	$	121.3	$	68.6	$	0.0	$	696.4
Second Quarter 2011		482.3		126.0		66.6		0.0		674.9
First Six Months of 2012	$	1,017.1	$	242.7	$	127.2	$	0.0	$	1,387.0
First Six Months of 2011		953.4		235.6		128.2		0.0		1,317.2

Income before Income Taxes⁽²⁾
Second Quarter 2012	$	96.1	$	14.8	$	9.8	$	2.4	$	123.1
Second Quarter 2011		94.1		13.5		8.2		3.2		119.0
First Six Months of 2012	$	208.3	$	36.6	$	16.5	$	4.9	$	266.3
First Six Months of 2011		198.9		32.6		13.8		5.3		250.6

⁽¹⁾	Intersegment sales from Consumer International to Consumer Domestic were $0.7 million and $1.2 million for the quarters ended June 30, 2012 and July 1, 2011, respectively, and were $1.8 million and $2.5 million for the six months ended June 30, 2012 and July 1, 2011, respectively.

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

Product line net sales to external customers for the three and six months ended June 30, 2012 and July 1, 2011, respectively, were as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 30, 2012		July 1, 2011		June 30, 2012		July 1, 2011
Household Products	$	346.2	$	313.3	$	693.8	$	617.1
Personal Care Products		160.3		169.0		323.3		336.3


Total Consumer Domestic		506.5		482.3		1,017.1		953.4
Total Consumer International		121.3		126.0		242.7		235.6
Total SPD		68.6		66.6		127.2		128.2

Total Consolidated Net Sales	$	696.4	$	674.9	$	1,387.0	$	1,317.2

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