16.

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, 2017, 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 and ArmaKleen for the year ended December 31, 2017 and 2016 and Armand, ArmaKleen and Natronx for the year ended December 31, 2015 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, 2017:

	Consumer		Consumer
	Domestic		International		SPD		Corporate⁽¹⁾			As Reported
Net sales
2017	$	2,854.9	$	621.1	$	300.2	$	0.0		$	3,776.2
2016		2,677.8		525.2		290.1		0.0			3,493.1
2015		2,581.6		501.0		312.2		0.0			3,394.8
Gross profit
2017		1,380.1		281.0		101.3		(32.8	)		1,729.6
2016		1,308.8		235.4		83.0		(36.6	)		1,590.6
2015		1,215.7		226.8		101.9		(32.6	)		1,511.8
Marketing Expenses
2017		364.1		85.7		4.4		0.0			454.2
2016		345.2		78.2		3.8		0.0			427.2
2015		336.5		76.6		4.4		0.0			417.5
Selling, General and Administrative Expenses
2017		366.6		158.5		50.4		(32.8	)		542.7
2016		350.7		89.0		36.1		(36.6	)		439.2
2015		326.2		93.3		33.2		(32.6	)		420.1
Income from Operations
2017		649.4		36.8		46.5		0.0			732.7
2016		612.9		68.2		43.1		0.0			724.2
2015		553.0		56.9		64.3		0.0			674.2
Equity in Earnings (Losses) of Affiliates
2017		0.0		0.0		0.0		10.8			10.8
2016		0.0		0.0		0.0		9.2			9.2
2015		0.0		0.0		0.0		(5.8	)		(5.8	)
Income Before Income Taxes
2017		606.4		32.0		43.5		10.8			692.7
2016		590.6		66.3		39.8		9.2			705.9
2015		529.4		54.5		57.3		(5.8	)		635.4
Identifiable Assets
2017		4,543.2		1,112.4		268.5		90.7			6,014.8
2016		3,374.4		714.5		181.3		83.9			4,354.1
2015		3,449.9		521.0		206.5		79.5			4,256.9
Capital Expenditures
2017		30.6		8.9		5.5		0.0			45.0
2016		34.9		8.8		6.1		0.0			49.8
2015		51.5		7.2		3.1		0.0			61.8
Depreciation & Amortization
2017		95.5		16.8		10.3		2.8			125.4
2016		87.8		9.5		8.6		1.7			107.6
2015		82.6		7.9		8.5		2.0			101.0

⁽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 $32.8, $36.6, and $32.6 for 2017, 2016 and 2015, respectively.
^(B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2017 and 2016 and Armand, ArmaKleen and Natronx for the years ended December 31, 2015.
^(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 $4.5, $3.4 and $5.3 for the twelve months ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively.

Product line revenues from external customers for each of the three years ended December 31, 2017, December 31, 2016 and December 31, 2015 were as follows:

	2017		2016		2015
Household Products	$	1,640.0	$	1,593.4	$	1,544.3
Personal Care Products		1,214.9		1,084.4		1,037.3
Total Consumer Domestic		2,854.9		2,677.8		2,581.6
Total Consumer International		621.1		525.2		501.0
Total SPD		300.2		290.1		312.2
Total Consolidated Net Sales	$	3,776.2	$	3,493.1	$	3,394.8

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%, 84% and 83% of the net sales reported in the accompanying consolidated financial statements in 2017, 2016 and 2015, respectively, were to customers in the U.S. Approximately 95%, 98% and 96% of long-lived assets were located in the U.S. at December 31, 2017, 2016 and 2015, 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 three customers accounted for approximately 36%, 35% and 35% of consolidated net sales in 2017, 2016 and 2015, respectively, of which a single customer (Wal-Mart Stores, Inc. and its affiliates) accounted for approximately 24%, 24% and 24% in 2017, 2016 and 2015, respectively.