Segment Information

Our reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. The segments have similar business characteristics and each offers similar products through similar customer access methods.

The accounting policies of the segments are the same as those described in Note 1, Description of the Business and Summary of Significant Accounting Policies. We evaluate the performance of our segments based on revenues and segment profits or losses. Segment revenues primarily reflect direct sales of products to Representatives based on the Representative’s geographic location.

We determine segment profit by deducting the related costs and expenses from segment revenue. In order to ensure comparability between periods, segment profit includes an allocation of global marketing expenses based on actual revenues. Segment profit excludes global expenses other than the allocation of marketing, costs to implement ("CTI") restructuring initiatives (see Note 17, Restructuring Initiatives), a loss contingency related to a non-U.S. pension plan (see Note 14, Employee Benefit Plans), certain significant asset impairment charges (see Note 20, Goodwill), and other items, which are not allocated to a particular segment, if applicable. This is consistent with the manner in which we assess our performance and allocate resources.

Other operating segments and business activities include the business results for Venezuela, as it was deconsolidated effective March 31, 2016, as well as markets that have been exited. Effective in the first quarter of 2017, given that we exited Thailand during 2016, the results of Thailand are now reported in Other operating segments and business activities for all periods presented, while previously the results had been reported in Asia Pacific. Effective in the first quarter of 2018, given that we have exited Australia and New Zealand during 2018, the results of Australia and New Zealand are now reported in Other operating segments and business activities for all periods presented, while previously the results had been reported in Asia Pacific. Other operating segments and business activities also include revenue from the sale of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016 and ongoing royalties from the licensing of our name and products.

Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables:



Total Revenue	2018		2017		2016
Europe, Middle East & Africa	$	2,093.8	$	2,126.5	$	2,138.2
South Latin America ⁽²⁾	2,146.9		2,222.4		2,145.9
North Latin America	809.3		811.8		829.9
Asia Pacific	470.8		471.9		494.0
Total segment revenue	5,520.8		5,632.6		5,608.0
Other operating segments and business activities	50.5		83.0		109.7
Total revenue	$	5,571.3	$	5,715.6	$	5,717.7



Operating Profit	2018			2017			2016
Segment Profit
Europe, Middle East & Africa	$	267.5		$	329.6		$	322.8
South Latin America ⁽²⁾	314.6			195.7			201.1
North Latin America	70.4			83.4			116.1
Asia Pacific	42.0			50.8			62.5
Total segment profit ⁽²⁾	694.5			659.5			702.5
Other operating segments and business activities	3.6			2.5			4.1
Unallocated global expenses	(282.4		)	(302.3		)	(332.6		)
CTI restructuring initiatives	(180.5		)	(60.2		)	(77.4		)
Loss contingency	—			(18.2		)	—
Legal settlement⁽¹⁾	—			—			27.2
Operating profit ⁽²⁾	$	235.2		$	281.3		$	323.8

(1)

In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ($27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016.

(2) Includes the impact of the Brazil IPI tax release, which was recorded in net sales and other (income) expense, net in the amounts of approximately $168 and approximately $27, respectively, in our Consolidated Income Statements (See Note 19, Contingencies for further information).



Total Assets	2018		2017		2016
Europe, Middle East & Africa	$	1,048.8	$	1,190.5	$	949.3
South Latin America	1,001.0		1,273.6		1,306.3
North Latin America	329.7		335.8		344.4
Asia Pacific	272.0		278.2		291.8
Total from reportable segments	2,651.5		3,078.1		2,891.8
Total from discontinued operations	—		—		1.3
Other operating segments	5.4		18.9		6.5
Global	353.1		600.9		519.3
Total assets	$	3,010.0	$	3,697.9	$	3,418.9



Capital Expenditures	2018		2017		2016
Europe, Middle East & Africa	$	37.0	$	29.4	$	18.8
South Latin America	27.5		35.4		39.2
North Latin America	9.1		12.9		11.7
Asia Pacific	2.9		2.3		4.3
Total from reportable segments	76.5		80.0		74.0
Other operating segments	—		—		0.2
Global	18.4		17.3		18.8
Total capital expenditures	$	94.9	$	97.3	$	93.0



Depreciation and Amortization	2018		2017		2016
Europe, Middle East & Africa	$	27.3	$	29.9	$	28.2
South Latin America	30.1		34.3		30.9
North Latin America	14.2		13.6		13.1
Asia Pacific	8.3		8.9		10.4
Total from reportable segments	79.9		86.7		82.6
Other operating segments	.3		.4		1.3
Global	27.5		26.9		30.0
Total depreciation and amortization	$	107.7	$	114.0	$	113.9

Total Revenue by Major Country

A major country is defined as one with total revenues greater than 10% of consolidated total revenues.



	2018		2017		2016
Brazil	$	1,262.8	$	1,263.8	$	1,220.4
All other	4,308.5		4,451.8		4,497.3
Total	$	5,571.3	$	5,715.6	$	5,717.7

Long-Lived Assets by Major Country

A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets, and also includes our country of domicile (the U.S.). Long-lived assets primarily include property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities and long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility.



	2018		2017		2016
Brazil	$	283.2	$	396.9	$	400.9
U.S.	152.6		174.4		196.1
All other	458.0		554.3		559.9
Total	$	893.7	$	1,125.6	$	1,156.9