Segments

12 Months Ended

Dec. 31, 2018

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 of affiliates. As of December 31, 2018, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively. The Company’s equity in earnings of Armand and ArmaKleen for the year ended December 31, 2018, 2017 and 2016 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, 2018:

	Consumer		Consumer
	Domestic		International		SPD		Corporate⁽¹⁾			As Reported
Net sales
2018	$	3,129.9	$	709.5	$	306.5	$	0.0		$	4,145.9
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
Gross profit
2018		1,448.9		318.4		117.5		(44.0	)		1,840.8
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
Marketing Expenses
2018		383.3		95.4		4.5		0.0			483.2
2017		364.1		85.7		4.4		0.0			454.2
2016		345.2		78.2		3.8		0.0			427.2
Selling, General and Administrative Expenses
2018		422.7		131.6		55.6		(44.0	)		565.9
2017		366.6		158.5		50.4		(32.8	)		542.7
2016		350.7		89.0		36.1		(36.6	)		439.2
Income from Operations
2018		642.9		91.4		57.4		0.0			791.7
2017		649.4		36.8		46.5		0.0			732.7
2016		612.9		68.2		43.1		0.0			724.2
Equity in Earnings of Affiliates
2018		0.0		0.0		0.0		9.2			9.2
2017		0.0		0.0		0.0		10.8			10.8
2016		0.0		0.0		0.0		9.2			9.2
Income Before Income Taxes
2018		577.2		81.5		51.6		9.2			719.5
2017		606.4		32.0		43.5		10.8			692.7
2016		590.6		66.3		39.8		9.2			705.9
Identifiable Assets
2018		4,642.4		991.6		347.4		87.8			6,069.2
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
Capital Expenditures
2018		36.0		12.5		11.9		0.0			60.4
2017		30.6		8.9		5.5		0.0			45.0
2016		34.9		8.8		6.1		0.0			49.8
Depreciation & Amortization
2018		103.5		19.9		13.5		4.2			141.1
2017		95.5		16.8		10.3		2.8			125.4
2016		87.8		9.5		8.6		1.7			107.6

⁽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 $44.0, $32.8, and $36.6 for 2018, 2017 and 2016, respectively.
^(B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2018, 2017 and 2016.
^(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 $5.7, $4.5 and $3.4 for the twelve months ended December 31, 2018, December 31, 2017 and December 31, 2016, respectively.

Product line revenues from external customers for each of the three years ended December 31, 2018, December 31, 2017 and December 31, 2016 were as follows:

	2018		2017		2016
Household Products	$	1,725.5	$	1,640.0	$	1,593.4
Personal Care Products		1,404.4		1,214.9		1,084.4
Total Consumer Domestic		3,129.9		2,854.9		2,677.8
Total Consumer International		709.5		621.1		525.2
Total SPD		306.5		300.2		290.1
Total Consolidated Net Sales	$	4,145.9	$	3,776.2	$	3,493.1

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 82%, 83% and 84% of the net sales reported in the accompanying consolidated financial statements in 2018, 2017 and 2016, respectively, were to customers in the U.S. Approximately 95%, 95% and 98% of long-lived assets were located in the U.S. at December 31, 2018, 2017 and 2016, 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%, 36% and 35% of consolidated net sales in 2018, 2017 and 2016, respectively, of which a single customer (Walmart Inc. and its affiliates) accounted for approximately 23%, 24% and 24% in 2018, 2017 and 2016, respectively.