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Description of Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment Information Segment Reporting
In the fourth quarter of 2024, we realigned our internal operating and management structure to streamline our supply chain and improve the efficiency of our corporate and regional overhead cost structures. As a result of this realignment, we manage and report our operations through operating segments that have been aggregated into three reportable segments defined by geographic regions and product groupings: North America ("NA"), International Personal Care ("IPC") and International Family Care and Professional ("IFP"). Further, our measure of segment profitability was changed to include the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting. Segment results for the historical periods presented in these consolidated financial statements have been recast to reflect these changes.
The reportable segments were determined in accordance with how our Chief Executive Officer, who is our chief operating decision maker ("CODM"), develops and executes global strategies to drive growth and profitability. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and capacity and capital investments for each of these businesses. The primary measure of segment profitability utilized by our CODM is segment operating profit. Our CODM uses this measure to assess the operating results and performance of our segments, perform analytical comparisons to budget and allocate resources to each segment. Segment operating profit excludes Corporate & Other, which primarily encompasses certain unallocated general corporate expenses, impairment charges, one-time (gains) or losses associated with acquisitions and divestitures, and costs related to our reorganization activities that are not associated with the ongoing operations of the segments. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.
The principal sources of revenue in each segment are described below:
•North America consists of products encompassing each of our five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Huggies, Pull-Ups, GoodNites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall and other brand names.
•International Personal Care consists of three core categories — Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. These products are sold under the Huggies, Kotex, Goodfeel, Intimus, Depend and other brand names.
•International Family Care and Professional consists of two core categories — Family Care and Professional, including facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Kleenex, Scott, Viva, Andrex, Scottex, Wypall and other brand names.
The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM:
Year Ended December 31, 2024
NAIPCIFPTotal
Net Sales$11,008 $5,715 $3,335 $20,058 
Cost of Products Sold6,518 3,761 2,442 12,721 
Advertising and Promotion Expense806 416 74 1,296 
Research, Selling and General Expense1,150 738 441 2,329 
Other (Income) and Expense, net(a)
— 13 1 14 
Segment Operating Profit$2,534 $787 $377 $3,698 
Corporate & Other(488)
Total Operating Profit$3,210 
Year Ended December 31, 2023
NAIPCIFPTotal
Net Sales$10,988 $5,899 $3,544 $20,431 
Cost of Products Sold6,607 4,008 2,754 13,369 
Advertising and Promotion Expense739 400 58 1,197 
Research, Selling and General Expense1,135 763 437 2,335 
Other (Income) and Expense, net(a)
— 96 8 104 
Segment Operating Profit$2,507 $632 $287 $3,426 
Corporate & Other(1,082)
Total Operating Profit$2,344 
Year Ended December 31, 2022
NAIPCIFPTotal
Net Sales$10,470 $6,054 $3,651 $20,175 
Cost of Products Sold6,784 4,258 2,907 13,949 
Advertising and Promotion Expense608 348 53 1,009 
Research, Selling and General Expense968 764 434 2,166 
Other (Income) and Expense, net(a)
— 14 1 15 
Segment Operating Profit$2,110 $670 $256 $3,036 
Corporate & Other(355)
Total Operating Profit$2,681 
(a)Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.
Depreciation and amortization expense and capital spending by segment were:
NAIPCIFPCorporate
& Other
Total
Depreciation and Amortization
2024$440 $200 $133 $8 $781 
2023430 205 115 3 753 
2022429 199 123 3 754 
Capital Spending
2024443 157 116 5 721 
2023455 196 100 15 766 
2022502 236 134 4 876 
Sales of Principal Products for the years ended were:
Year Ended December 31
202420232022
Baby and Child Care$7,056 $7,054 $7,166 
Family Care6,157 6,290 6,243 
Professional3,176 3,404 3,256 
Adult Care1,864 1,809 1,730 
Feminine Care1,721 1,787 1,695 
All Other84 87 85 
Consolidated$20,058 $20,431 $20,175 
Net sales in the U.S. to third parties totaled $10.4 billion in 2024 and 2023 and $9.8 billion in 2022. No other individual country's net sales exceed 10% of consolidated net sales.
Net sales to Walmart Inc. as a percent of our consolidated net sales were approximately 14% in 2024 and 13% in 2023 and 2022. Net sales to Walmart Inc. were primarily in the NA segment.
Sales of Principal Products
Sales of Principal Products for the years ended were:
Year Ended December 31
202420232022
Baby and Child Care$7,056 $7,054 $7,166 
Family Care6,157 6,290 6,243 
Professional3,176 3,404 3,256 
Adult Care1,864 1,809 1,730 
Feminine Care1,721 1,787 1,695 
All Other84 87 85 
Consolidated$20,058 $20,431 $20,175