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 (losses) of affiliates. As of December 31, 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 twelve months ended December 31, 2014, 2013 and 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.

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, 2014:

	Consumer			Consumer
	Domestic			International			SPD			Corporate⁽¹⁾			As Reported
Net sales
2014	$	2,471.6		$	535.2		$	290.8		$	0.0		$	3,297.6
2013		2,413.5			532.8			248.0			0.0			3,194.3
2012		2,156.9			510.1			254.9			0.0			2,921.9
Gross profit
2014		1,160.9			242.1			76.6			(26.7	)		1,452.9
2013		1,163.0			243.0			63.3			(31.3	)		1,438.0
2012		1,015.9			236.9			68.0			(29.4	)		1,291.4
Marketing Expenses
2014		333.2			80.5			3.2			0.0			416.9
2013		320.5			76.6			2.7			0.0			399.8
2012		280.3			74.5			2.5			0.0			357.3
Selling, General and Administrative Expenses
2014		302.0			93.9			25.6			(26.7	)		394.8
2013		318.6			98.8			29.9			(31.3	)		416.0
2012		297.6			89.8			31.0			(29.4	)		389.0
Income from Operations
2014		525.7			67.6			47.9			0.0			641.2
2013		524.0			67.4			30.8			0.0			622.2
2012		438.0			72.6			34.5			0.0			545.1
Equity in Earnings (Losses) of Affiliates
2014		0.0			0.0			0.0			11.6			11.6
2013		0.0			0.0			0.0			2.8			2.8
2012		0.0			0.0			0.0			8.9			8.9
Interest Expense⁽²⁾
2014		22.5			2.9			2.0			0.0			27.4
2013		23.4			3.0			1.3			0.0			27.7
2012		11.2			1.9			0.9			0.0			14.0
Investment Earnings⁽²⁾
2014		1.9			0.2			0.2			0.0			2.3
2013		2.2			0.3			0.1			0.0			2.6
2012		1.4			0.2			0.1			0.0			1.7
Other Income (Expense), net⁽²⁾
2014		(2.3	)		(0.3	)		(0.2	)		0.0			(2.8	)
2013		(1.8	)		(0.2	)		(0.1	)		0.0			(2.1	)
2012		0.6			0.1			0.1			0.0			0.8
Income Before Income Taxes
2014		502.8			64.7			45.8			11.6			624.9
2013		501.0			64.5			29.5			2.8			597.8
2012		428.8			71.0			33.8			8.9			542.5
Identifiable Assets
2014		3,502.9			619.8			135.1			123.5			4,381.3
2013		3,407.4			602.5			140.6			109.2			4,259.7
2012		3,317.5			543.8			135.1			101.7			4,098.1
Capital Expenditures
2014		59.2			8.4			2.9			0.0			70.5
2013		53.6			10.3			3.2			0.0			67.1
2012		58.9			10.0			5.6			0.0			74.5
Depreciation & Amortization
2014		76.7			7.6			5.2			1.7			91.2
2013		77.3			6.1			5.4			1.7			90.5
2012		70.5			7.9			5.1			1.5			85.0

⁽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 $26.7, $31.3, and $29.4 for 2014, 2013 and 2012, 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, net, were allocated to the segments based upon each segment's relative Income from Operations.

Other than the differences noted in footnote ⁽¹⁾ and ⁽²⁾ 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 $1.9, $2.2 and $3.4 for the twelve months ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively.

Product line revenues from external customers for each of the three years ended December 31, 2014, December 31, 2013 and December 31, 2012 were as follows:

	2014		2013		2012
Household Products	$	1,466.2	$	1,436.1	$	1,411.3
Personal Care Products		1,005.4		977.4		745.6
Total Consumer Domestic		2,471.6		2,413.5		2,156.9
Total Consumer International		535.2		532.8		510.1
Total SPD		290.8		248.0		254.9
Total Consolidated Net Sales	$	3,297.6	$	3,194.3	$	2,921.9

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

Geographic Information

Approximately 81%, 80% and 79% of the net sales reported in the accompanying consolidated financial statements in 2014, 2013 and 2012, respectively, were to customers in the U.S. Approximately 96%, 97% and 97% of long-lived assets were located in the U.S. at December 31, 2014, 2013 and 2012, respectively. Other than the U.S., no one country accounts for more than 6% of consolidated net sales and 5% of total assets.

Customers

A group of three customers accounted for approximately 36%, 35% and 34% of consolidated net sales in 2014, 2013 and 2012, respectively, of which a single customer (Wal-Mart Stores, Inc. and its affiliates) accounted for approximately 25%, 24% and 24% in 2014, 2013 and 2012, respectively.