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Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2026
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. The operations of the Oral, Personal and Home Care product segment are managed geographically in four reportable operating segments: North America, Latin America, EMEA and Asia Pacific. As part of the Strategic Growth and Productivity Program, to further optimize and leverage the operating scale and drive growth within the Europe and Africa/Eurasia regions, the Company realigned its reportable operating segments effective for the quarter ended March 31, 2026. As a result, the Company combined the results of its Europe and Africa/Eurasia (excluding Russia and Belarus) reportable operating segments and its skin health business (previously within the North America reportable operating segment) into a new EMEA reportable operating segment. In conjunction with this realignment, Russia and Belarus, which were previously reported within the Africa/Eurasia reportable operating segment, are reported within the Asia Pacific reportable operating segment. This reportable operating segment realignment did not impact the Company’s historical consolidated results of operations, financial position or cash flows. The Company has recast its historical geographic segment information to conform to the new reporting structure. As a result of this reporting structure realignment, the Company reallocated goodwill of approximately $19 from the EMEA segment to the Asia Pacific segment. In conjunction with this reporting structure realignment, the Company completed an assessment indicating no goodwill impairment existed as a result of this new segment reporting structure. The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes. The Chairman of the Board, President and Chief Executive Officer has been determined to be the Company’s Chief Operating Decision Maker and he uses Operating Profit to assess performance and to allocate resources for each of the reportable operating segments in the budgeting and forecasting process. Asset information by segment is not utilized for purposes of assessing performance or allocating resources, and therefore such information has not been presented. The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. Approximately two-thirds of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa, the Middle East and Eastern and Central Europe). Corporate Operating profit (loss) for the three months ended March 31, 2026 included charges resulting from the Strategic Growth and Productivity Program of $171. Corporate Operating profit (loss) for the three months ended March 31, 2025 included charges resulting from the ERISA litigation matter of $15. The Company’s Net sales, significant segment expenses and operating profit, by reportable segment were:
| Three Months Ended March 31, 2026
| Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other (income) expense, net (1) |  | Operating profit
Reportable Segments |  |  |  |  |  |  |  |  |
Oral, Personal and Home Care |  |  |  |  |  |  |  |  |
North America | $ | 888 |  |  | $ | 390 |  |  | $ | 359 |  |  | $ | (2) |  |  | $ | 141 |
Latin America | 1,313 |  |  | 554 |  |  | 357 |  |  | 1 |  |  | 401 |
Europe, Middle East & Africa | 1,126 |  |  | 408 |  |  | 438 |  |  | 14 |  |  | 266 |
Asia Pacific | 804 |  |  | 295 |  |  | 289 |  |  | (2) |  |  | 222 |
Total Oral, Personal and Home Care | 4,131 |  |  |  |  |  |  |  |  | 1,030 |
Hill’s Pet Nutrition | 1,194 |  |  | 455 |  |  | 456 |  |  | 3 |  |  | 280 |
Reconciliation with Total Company Operating Profit |  |  |  |  |  |  |  |  |
Corporate |  |  |  |  |  |  |  |  | (346) |
Total | $ | 5,324 |  |  |  |  |  |  |  |  | $ | 964 |
Note: Table may not sum due to rounding. (1)Other (income) expense, net primarily includes amortization of intangible assets and equity income.
| Three Months Ended March 31, 2025
| Net sales |  | Cost of sales |  | Selling, general and administrative expenses |  | Other (income) expense, net (1) |  | Operating profit
Reportable Segments |  |  |  |  |  |  |  |  |
Oral, Personal and Home Care |  |  |  |  |  |  |  |  |
North America | $ | 904 |  |  | $ | 358 |  |  | $ | 350 |  |  | $ | — |  |  | $ | 197 |
Latin America | 1,143 |  |  | 487 |  |  | 316 |  |  | (7) |  |  | 348 |
Europe, Middle East & Africa | 1,007 |  |  | 367 |  |  | 399 |  |  | 18 |  |  | 222 |
Asia Pacific | 738 |  |  | 275 |  |  | 264 |  |  | (5) |  |  | 204 |
Total Oral, Personal and Home Care | 3,792 |  |  |  |  |  |  |  |  | 971 |
Hill’s Pet Nutrition | 1,118 |  |  | 437 |  |  | 422 |  |  | 1 |  |  | 258 |
Reconciliation with Total Company Operating Profit |  |  |  |  |  |  |  |  |
Corporate |  |  |  |  |  |  |  |  | (153) |
Total | $ | 4,911 |  |  |  |  |  |  |  |  | $ | 1,076 |
Note: Table may not sum due to rounding. (1)Other (income) expense, net primarily includes amortization of intangible assets and equity income. The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales:
| Three Months Ended |  |
| March 31, |  |
| 2026 |  | 2025 |  |  |  |
Net sales |  |  |  |  |  |  |
Oral Care | 44 | % |  | 44 | % |  |  |  |
Personal Care | 17 | % |  | 17 | % |  |  |  |
Home Care | 17 | % |  | 16 | % |  |  |  |
Pet Nutrition | 22 | % |  | 23 | % |  |  |  |
Total Net sales | 100 | % |  | 100 | % |  |  |  |
Capital expenditures and depreciation and amortization expense by segment were:
| Three Months Ended |  |
| March 31, |  |
| 2026 |  | 2025 |  |  |  |
Capital expenditures |  |  |  |  |  |  |
Oral, Personal and Home Care |  |  |  |  |  |  |
North America | $ | 14 |  |  | $ | 16 |  |  |  |  |
Latin America | 39 |  |  | 28 |  |  |  |  |
Europe, Middle East & Africa | 10 |  |  | 11 |  |  |  |  |
Asia Pacific | 14 |  |  | 13 |  |  |  |  |
Total Oral, Personal and Home Care | 77 |  |  | 68 |  |  |  |  |
Hill’s Pet Nutrition | 22 |  |  | 21 |  |  |  |  |
Corporate | 39 |  |  | 35 |  |  |  |  |
Total Capital expenditures | $ | 138 |  |  | $ | 124 |  |  |  |  |
| Three Months Ended |  |
| March 31, |  |
| 2026 |  | 2025 |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |
Oral, Personal and Home Care |  |  |  |  |  |  |
North America | $ | 19 |  |  | $ | 19 |  |  |  |  |
Latin America | 29 |  |  | 24 |  |  |  |  |
Europe, Middle East & Africa | 27 |  |  | 29 |  |  |  |  |
Asia Pacific | 21 |  |  | 20 |  |  |  |  |
Total Oral, Personal and Home Care | 96 |  |  | 92 |  |  |  |  |
Hill’s Pet Nutrition | 35 |  |  | 31 |  |  |  |  |
Corporate | 25 |  |  | 25 |  |  |  |  |
Total Depreciation and amortization | $ | 156 |  |  | $ | 148 |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. 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