Operating Segments

3 Months Ended

Mar. 31, 2013

Operating Segments

Operating Segments

13. Operating Segments

Effective in the first quarter of 2013, the company changed its reportable segments due to a change in its underlying organizational model designed to support the business following the Nalco merger and to facilitate global growth. The company did not operate under the realigned reportable segment structure prior to 2013. The company’s new segment structure will focus on global businesses, with its ten operating units, which are also operating segments, aggregated into four reportable segments as follows:

· Global Industrial consists of the Global Water, Global Food & Beverage, Global Paper and Global Textile Care operating units.

· Global Institutional consists of the Global Institutional, Global Specialty and Global Healthcare operating units.

· Global Energy consists of the Global Energy operating unit.

· Other consists of the Global Pest Elimination and Equipment Care operating units.

For periods prior to its disposition in December 2012, the Vehicle Care operating unit was included within the Other reportable segment within the realigned reportable segment structure.

Consistent with the company’s internal management reporting, the Corporate segment includes amortization specifically from the Nalco merger intangible assets and certain merger integration costs. The Corporate segment also includes special (gains) and charges reported on the Consolidated Statement of Income.

The profitability of the company’s operating units is evaluated by management based on operating income. The company has no intersegment revenues. The international amounts included within each of the company’s four reportable segments are based on translation into U.S. dollars at the fixed currency exchange rates used by management for 2013.

The following tables present net sales and operating income (loss) by reportable segment, reflecting the impact of the segment structure changes discussed above, with first quarter 2012 recast under the same structure utilized for the first quarter 2013:

	First Quarter Ended
	March 31
(millions)	2013			2012
Net Sales
Global Industrial	$	1,140.7		$	1,129.9
Global Institutional	974.7			951.3
Global Energy	579.1			538.9
Other	167.3			175.5
Subtotal at fixed currency rates	2,861.8			2,795.6
Effect of foreign currency translation	10.3			15.3
Consolidated	$	2,872.1		$	2,810.9
Operating Income
Global Industrial	$	117.1		$	98.1
Global Institutional	145.3			132.9
Global Energy	78.8			82.1
Other	20.6			19.9
Corporate	(100.9		)	(167.3		)
Subtotal at fixed currency rates	260.9			165.7
Effect of foreign currency translation	0.8			0.1
Consolidated	$	261.7		$	165.8