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Segments
6 Months Ended
Jun. 30, 2014
Segments
16. 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. As of June 30, 2014, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively, and a one-third ownership interest in Natronx. The Company’s equity in earnings (losses) of Armand, ArmaKleen and Natronx for the three and six months ended June 30, 2014 and June 30, 2013 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 months ended June 30, 2014 and June 30, 2013 are as follows:

 

     Consumer
Domestic
     Consumer
International
     SPD      Corporate(3)     Total  

Net Sales(1)

             

Second Quarter 2014

   $ 598.9       $ 136.6       $ 72.8       $ 0.0      $ 808.3   

Second Quarter 2013

     594.5         132.7         60.4         0.0        787.6   

First Six Months of 2014

   $ 1,192.2       $ 260.4       $ 137.7       $ 0.0      $ 1,590.3   

First Six Months of 2013

     1,185.5         262.0         119.4         0.0        1,566.9   

Income Before Income Taxes(2)

             

Second Quarter 2014

   $ 107.7       $ 14.3       $ 10.1       $ 2.9      $ 135.0   

Second Quarter 2013

     113.3         15.8         4.2         (1.1     132.2   

First Six Months of 2014

   $ 234.6       $ 32.5       $ 20.1       $ 4.5      $ 291.7   

First Six Months of 2013

     247.2         37.5         11.2         (0.5     295.4   

 

(1) Intersegment sales from Consumer International to Consumer Domestic were $0.3 and $0.3 for the quarters ended June 30, 2014 and June 30, 2013, respectively, and were $0.5 and $1.2 for the six months ended June 30, 2014 and June 30, 2013, respectively.
(2) In determining Income before Income Taxes, interest expense, investment earnings and other income (expense) were allocated among segments based upon each segment’s relative operating profit.
(3) Corporate consists of equity in earnings (losses) of affiliates from Armand, ArmaKleen and Natronx.

Product line revenues from external customers are as follows:

 

     Three Months Ended      Six Months Ended  
     June 30,
2014
     June 30,
2013
     June 30,
2014
     June 30,
2013
 

Household Products

   $ 355.2       $ 354.0       $ 707.7       $ 712.8   

Personal Care Products

     243.7         240.5         484.5         472.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Consumer Domestic

     598.9         594.5         1,192.2         1,185.5   

Total Consumer International

     136.6         132.7         260.4         262.0   

Total SPD

     72.8         60.4         137.7         119.4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Consolidated Net Sales

   $ 808.3       $ 787.6       $ 1,590.3       $ 1,566.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

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