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Segments of Business | 9 Months Ended
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Sep. 28, 2025
Segment Reporting [Abstract] |
Segments of Business | Segments of Business The Company is organized into three reportable business segments: Self Care, Skin Health and Beauty, and Essential Health. The Company’s Chief Operating Decision Maker (the “CODM”), the Chief Executive Officer, uses Segment adjusted operating income as the measure of profit or loss and to evaluate the performance of the Company’s segments. For each segment, the CODM uses this information to assist in evaluating underlying trends, to monitor budget and forecast versus actual results, to make investment decisions to allocate resources both in total, and between the segments, and to make key segment personnel decisions. Segment profit is based on Operating income, excluding depreciation, amortization of intangible assets, Separation-related costs, restructuring expenses and operating model optimization initiatives, impairment charges, the impact of the conversion of stock-based awards, issuance of Founder Shares (as defined below), Other operating expense, net, and unallocated general corporate administrative expenses (referred to herein as “Segment adjusted operating income”), as the CODM excludes these items in assessing segment financial performance. General corporate/unallocated expenses, which include expenses related to treasury, legal operations, and certain other expenses, along with gains and losses related to the overall management of the Company, are not allocated to the segments. In assessing segment performance and managing operations, the CODM does not review segment assets. The Company operates the business through the following three reportable business segments based on product categories:
Reportable Segments | Product Categories
Self Care | Cough, Cold, and Allergy
| Pain Care
| Other Self Care (Digestive Health, Smoking Cessation, Eye Care, and Other)
Skin Health and Beauty | Face and Body Care
| Hair, Sun, and Other
Essential Health | Oral Care
| Baby Care
| Other Essential Health (Women’s Health, Wound Care, and Other)
The Company’s product categories as a percentage of Net sales for the fiscal three and nine months ended September 28, 2025 and September 29, 2024 were as follows:
|  | Fiscal Three Months Ended |  | Fiscal Nine Months Ended
Product Categories |  | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024 |  |
Cough, Cold, and Allergy |  | 13 | % |  | 13 | % |  | 14 | % |  | 14 | % |  |
Pain Care |  | 13 |  |  | 14 |  |  | 13 |  |  | 13 |  |  |
Other Self Care |  | 16 |  |  | 15 |  |  | 15 |  |  | 15 |  |  |
Face and Body Care |  | 20 |  |  | 20 |  |  | 19 |  |  | 19 |  |  |
Hair, Sun, and Other |  | 8 |  |  | 7 |  |  | 8 |  |  | 9 |  |  |
Oral Care |  | 10 |  |  | 11 |  |  | 11 |  |  | 10 |  |  |
Baby Care |  | 9 |  |  | 9 |  |  | 9 |  |  | 9 |  |  |
Other Essential Health |  | 11 |  |  | 11 |  |  | 11 |  |  | 11 |  |  |
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  |
Segment Net Sales and Segment Adjusted Operating Income Segment net sales and Segment adjusted operating income for the fiscal three and nine months ended September 28, 2025 and September 29, 2024 were as follows:
|  | Fiscal Three Months Ended |  |
|  | September 28, 2025 |  | September 29, 2024 |  |
(Dollars in Millions) |  | Self Care |  | Skin Health and Beauty |  | Essential Health |  | Total |  | Self Care |  | Skin Health and Beauty |  | Essential Health |  | Total |  |  |  |
Net sales |  | $ | 1,564 |  |  | $ | 1,038 |  |  | $ | 1,162 |  |  | $ | 3,764 |  |  | $ | 1,625 |  |  | $ | 1,072 |  |  | $ | 1,202 |  |  | $ | 3,899 |  |  |  |  |
Segment adjusted Cost of sales(1) |  | 546 |  |  | 401 |  |  | 512 |  |  | 1,459 |  |  | 569 |  |  | 421 |  |  | 539 |  |  | 1,529 |  |  |  |  |
Other segment expense items(2) |  | 498 |  |  | 500 |  |  | 343 |  |  | 1,341 |  |  | 499 |  |  | 460 |  |  | 372 |  |  | 1,331 |  |  |  |  |
Segment adjusted operating income |  | $ | 520 |  |  | $ | 137 |  |  | $ | 307 |  |  | $ | 964 |  |  | $ | 557 |  |  | $ | 191 |  |  | $ | 291 |  |  | $ | 1,039 |  |  |  |  |
Reconciliation to Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation(3) |  |  |  |  |  |  |  | 75 |  |  |  |  |  |  |  |  | 94 |  |  |  |  |
Amortization of intangible assets(4) |  |  |  |  |  |  |  | 66 |  |  |  |  |  |  |  |  | 66 |  |  |  |  |
Separation-related costs(5) |  |  |  |  |  |  |  | 17 |  |  |  |  |  |  |  |  | 85 |  |  |  |  |
Restructuring expenses and operating model optimization initiatives(6) |  |  |  |  |  |  |  | 97 |  |  |  |  |  |  |  |  | 38 |  |  |  |  |
Conversion of stock-based awards(8) |  |  |  |  |  |  |  | 1 |  |  |  |  |  |  |  |  | 6 |  |  |  |  |
Founder Shares(9) |  |  |  |  |  |  |  | (4) |  |  |  |  |  |  |  |  | 7 |  |  |  |  |
Other operating expense, net |  |  |  |  |  |  |  | 1 |  |  |  |  |  |  |  |  | 7 |  |  |  |  |
General corporate/unallocated expenses |  |  |  |  |  |  |  | 82 |  |  |  |  |  |  |  |  | 82 |  |  |  |  |
Operating income |  |  |  |  |  |  |  | $ | 629 |  |  |  |  |  |  |  |  | $ | 654 |  |  |  |  |
Other expense (income), net |  |  |  |  |  |  |  | 10 |  |  |  |  |  |  |  |  | (19) |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  | 93 |  |  |  |  |  |  |  |  | 96 |  |  |  |  |
Income before taxes |  |  |  |  |  |  |  | $ | 526 |  |  |  |  |  |  |  |  | $ | 577 |  |  |  |  |
|  | Fiscal Nine Months Ended |  |  |  |
|  | September 28, 2025 |  | September 29, 2024 |  |  |  |
(Dollars in Millions) |  | Self Care |  | Skin Health and Beauty |  | Essential Health |  | Total |  | Self Care |  | Skin Health and Beauty |  | Essential Health |  | Total |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 4,786 |  |  | $ | 3,074 |  |  | $ | 3,484 |  |  | $ | 11,344 |  |  | $ | 4,958 |  |  | $ | 3,229 |  |  | $ | 3,606 |  |  | $ | 11,793 |  |  |  |  |  |  |  |  |  |  |  |  |
Segment adjusted Cost of sales(1) |  | 1,681 |  |  | 1,236 |  |  | 1,539 |  |  | 4,456 |  |  | 1,693 |  |  | 1,324 |  |  | 1,597 |  |  | 4,614 |  |  |  |  |  |  |  |  |  |  |  |  |
Other segment expense items(2) |  | 1,492 |  |  | 1,460 |  |  | 1,048 |  |  | 4,000 |  |  | 1,573 |  |  | 1,403 |  |  | 1,095 |  |  | 4,071 |  |  |  |  |  |  |  |  |  |  |  |  |
Segment adjusted operating income |  | $ | 1,613 |  |  | $ | 378 |  |  | $ | 897 |  |  | $ | 2,888 |  |  | $ | 1,692 |  |  | $ | 502 |  |  | $ | 914 |  |  | $ | 3,108 |  |  |  |  |  |  |  |  |  |  |  |  |
Reconciliation to Income before taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation(3) |  |  |  |  |  |  |  | 226 |  |  |  |  |  |  |  |  | 238 |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of intangible assets(4) |  |  |  |  |  |  |  | 193 |  |  |  |  |  |  |  |  | 212 |  |  |  |  |  |  |  |  |  |  |  |  |
Separation-related costs(5) |  |  |  |  |  |  |  | 79 |  |  |  |  |  |  |  |  | 231 |  |  |  |  |  |  |  |  |  |  |  |  |
Restructuring expenses and operating model optimization initiatives(6) |  |  |  |  |  |  |  | 232 |  |  |  |  |  |  |  |  | 146 |  |  |  |  |  |  |  |  |  |  |  |  |
Impairment charges(7) |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  | 578 |  |  |  |  |  |  |  |  |  |  |  |  |
Conversion of stock-based awards(8) |  |  |  |  |  |  |  | 5 |  |  |  |  |  |  |  |  | 34 |  |  |  |  |  |  |  |  |  |  |  |  |
Founder Shares(9) |  |  |  |  |  |  |  | 4 |  |  |  |  |  |  |  |  | 24 |  |  |  |  |  |  |  |  |  |  |  |  |
Other operating expense, net |  |  |  |  |  |  |  | 19 |  |  |  |  |  |  |  |  | 29 |  |  |  |  |  |  |  |  |  |  |  |  |
General corporate/unallocated expenses |  |  |  |  |  |  |  | 251 |  |  |  |  |  |  |  |  | 258 |  |  |  |  |  |  |  |  |  |  |  |  |
Operating income |  |  |  |  |  |  |  | $ | 1,879 |  |  |  |  |  |  |  |  | $ | 1,358 |  |  |  |  |  |  |  |  |  |  |  |  |
Other expense, net |  |  |  |  |  |  |  | 26 |  |  |  |  |  |  |  |  | 6 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  | 281 |  |  |  |  |  |  |  |  | 283 |  |  |  |  |  |  |  |  |  |  |  |  |
Income before taxes |  |  |  |  |  |  |  | $ | 1,572 |  |  |  |  |  |  |  |  | $ | 1,069 |  |  |  |  |  |  |  |  |  |  |  |  |
(1) The Company defines Segment adjusted cost of sales as Cost of sales adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares (as defined below), operating model optimization initiatives, and general corporate/unallocated expenses. (2) Other segment expense items for each reportable segment include brand support, employee-related costs, shipping and handling costs, research and development costs, and certain other operating expenses (income). (3) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements. (4) Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives. (5) Separation-related costs includes depreciation expense on Separation-related assets for the fiscal three and nine months ended September 29, 2024. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Separation-Related Costs,” for additional information regarding Separation-related costs. (6) Restructuring expenses and operating model optimization initiatives relate to the 2024 Multi-Year Restructuring Initiative (as defined in Note 15, “Restructuring Expenses and Operating Model Optimization Initiatives”). See Note 15, “Restructuring Expenses and Operating Model Optimization Initiatives,” for additional information. (7) Impairment charges includes $488 million recognized in the fiscal three months ended June 30, 2024 in relation to Dr.Ci:Labo® long-lived assets, $68 million recognized in the fiscal three months ended March 31, 2024 on the held for sale asset associated with the Company’s former corporate headquarters in Skillman, New Jersey, and $22 million recognized in the fiscal three months ended June 30, 2024 on certain software development assets. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Impairment Charges,” for additional information. (8) Segment adjusted operating income excludes the impact of the conversion of stock-based awards that occurred on August 23, 2023. The adjustment represents the net impact of the gain on reversal of previously recognized stock-based compensation expense, offset by stock- based compensation expense recognized in the fiscal three and nine months ended September 28, 2025 and September 29, 2024 relating to employee services provided prior to the Separation. (9) On August 25, 2023, the Company’s Compensation & Human Capital Committee approved equity grants to individuals employed by Kenvue as of October 2, 2023 (the “Founder Shares”). On October 2, 2023, the Founder Shares were granted to all Kenvue employees in the form of stock options and PSUs to executive officers and either stock options and PSUs or RSUs to non-executive individuals. Depreciation and Amortization Depreciation and amortization by reportable segment for the fiscal three and nine months ended September 28, 2025 and September 29, 2024 were as follows:
|  | Fiscal Three Months Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Fiscal Nine Months Ended
(Dollars in Millions) |  | September 28, 2025 |  | September 29, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | September 28, 2025 |  | September 29, 2024 |  |
Self Care |  | $ | 52 |  |  | $ | 70 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 154 |  |  | $ | 155 |  |  |
Skin Health and Beauty |  | 32 |  |  | 46 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 94 |  |  | 143 |  |  |
Essential Health |  | 57 |  |  | 66 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 171 |  |  | 174 |  |  |
Total depreciation and amortization(1) |  | $ | 141 |  |  | $ | 182 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 419 |  |  | $ | 472 |  |  |
(1) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements. Amortization relates to the amortization of intangible assets.

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