Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segments

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 of affiliates.  As of December 31, 2021, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively.  The Company’s equity in earnings of Armand and ArmaKleen, totaling $9.4, $6.7, and $6.6 for the three years ending December 31, 2021, 2020 and 2019, respectively, are included in the Corporate segment.

Certain 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, 2021:    

	Consumer		Consumer
	Domestic		International		SPD		Corporate(1)			As Reported
Net sales
2021	$	3,941.9	$	912.2	$	336.0	$	0.0		$	5,190.1
2020		3,767.6		828.2		300.0		0.0			4,895.8
2019		3,302.6		756.3		298.8		0.0			4,357.7
Gross profit
2021		1,795.8		402.1		112.7		(47.1	)		2,263.5
2020		1,801.1		368.8		104.1		(59.8	)		2,214.2
2019		1,575.2		346.1		110.9		(48.2	)		1,984.0
Marketing Expenses
2021		442.1		131.1		4.5		0.0			577.7
2020		460.6		126.9		3.7		0.0			591.2
2019		398.0		112.9		4.1		0.0			515.0
Selling, General and Administrative Expenses
2021		445.3		135.7		72.8		(47.1	)		606.7
2020		455.6		128.7		68.8		(59.8	)		593.3
2019		470.1		151.7		55.2		(48.2	)		628.8
Income from Operations
2021		908.4		135.3		35.4		0.0			1,079.1
2020		884.9		113.2		31.6		0.0			1,029.7
2019		707.1		81.5		51.6		0.0			840.2
Equity in Earnings of Affiliates
2021		0.0		0.0		0.0		9.4			9.4
2020		0.0		0.0		0.0		6.7			6.7
2019		0.0		0.0		0.0		6.6			6.6
Income Before Income Taxes
2021		861.4		127.3		33.6		9.4			1,031.7
2020		832.4		105.0		29.7		6.7			973.8
2019		645.8		74.0		47.3		6.6			773.7
Identifiable Assets
2021		6,354.5		1,192.9		332.7		116.4			7,996.5
2020		5,819.8		1,144.5		339.7		110.5			7,414.5
2019		5,099.1		1,110.0		340.4		107.9			6,657.4
Capital Expenditures
2021		100.3		8.4		10.1		0.0			118.8
2020		81.8		7.1		10.0		0.0			98.9
2019		53.9		9.4		10.4		0.0			73.7
Depreciation & Amortization
2021		170.0		31.1		15.4		2.6			219.1
2020		142.8		29.6		14.5		2.8			189.7
2019		131.9		27.1		14.1		3.3			176.4

⁽¹⁾ Corporate 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 $47.1, $59.8, and $48.2 for 2021, 2020 and 2019, respectively.
^(B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2021, 2020 and 2019.
^(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 $10.8, $11.7 and $10.5 for the twelve months ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively.

Product line revenues from external customers for each of the three years ended December 31, 2021, December 31, 2020 and December 31, 2019 were as follows:

	2021		2020		2019
Household Products	$	2,103.0	$	2,038.5	$	1,821.7
Personal Care Products		1,838.9		1,729.1		1,480.9
Total Consumer Domestic		3,941.9		3,767.6		3,302.6
Total Consumer International		912.2		828.2		756.3
Total SPD		336.0		300.0		298.8
Total Consolidated Net Sales	$	5,190.1	$	4,895.8	$	4,357.7

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 82% of the net sales reported in the accompanying consolidated financial statements in 2021, 2020 and 2019, respectively, were to customers in the U.S.  Approximately 96%, 96% and 95% of long-lived assets were located in the U.S. at December 31, 2021, 2020 and 2019, 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 37% of consolidated net sales in 2021 and 36% in 2020 and 2019, respectively, of which a single customer (Walmart Inc. and its affiliates) accounted for approximately 24%, 23% and 24% in 2021, 2020 and 2019, respectively.