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Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments
17.
Segments

Segment Information

The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division. These segments are determined based on differences in the nature of products and organizational and ownership structures. The Company also has a Corporate segment.

Segment revenues are derived from the sale of the following products:

Segment

 

 

Products / Other

 

Consumer Domestic

 

Household and personal care products

Consumer International

 

Primarily personal care products

SPD

 

Specialty Products

Corporate

 

Equity in earnings of affiliates

As of December 31, 2024, the Company holds a 50% ownership interest in Armand. The Company's 50% interest in ArmaKleen was sold to our joint venture partner in October of 2024. The transaction is not material to the Company’s results of operations or cash flows. The Company’s equity in earnings of Armand and ArmaKleen, totaling $9.1, $8.7, and $12.3 for the three years ending December 31, 2024, 2023 and 2022, respectively, are included in the Corporate segment.

Our reportable segments comprise the structure used by our Chief Executive Officer, who has been determined to be the Chief Operating Decision Maker ("CODM") to make key operating decisions and assess performance. The CODM considers Operating Income for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. Asset information and capital expenditures are not regularly provided to the CODM.

 

The following tables present financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2024:

 

 

Year Ended December 31, 2024

 

 

 

Consumer Domestic

 

 

Consumer International

 

 

SPD

 

 

Corporate(1)

 

 

Total Consolidated

 

Net Sales

 

$

4,732.3

 

 

$

1,071.5

 

 

$

303.3

 

 

 

-

 

 

$

6,107.1

 

Cost of sales

 

 

2,450.1

 

 

 

605.5

 

 

 

193.5

 

 

 

67.9

 

 

 

3,317.0

 

Gross Profit

 

 

2,282.2

 

 

 

466.0

 

 

 

109.8

 

 

 

(67.9

)

 

 

2,790.1

 

Marketing expenses

 

 

538.5

 

 

 

156.9

 

 

 

2.7

 

 

 

-

 

 

 

698.1

 

Research and Development(2)

 

 

123.7

 

 

 

12.7

 

 

 

3.3

 

 

 

-

 

 

 

139.7

 

Selling, general and administrative expenses

 

 

607.7

 

 

 

183.6

 

 

 

64.7

 

 

 

(67.9

)

 

 

788.1

 

VMS Trade name and other asset impairments

 

 

327.4

 

 

 

29.7

 

 

 

-

 

 

 

-

 

 

 

357.1

 

Income from Operations

 

 

684.9

 

 

 

83.1

 

 

 

39.1

 

 

 

-

 

 

 

807.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

Consumer Domestic

 

 

Consumer International

 

 

SPD

 

 

Corporate(1)

 

 

Total Consolidated

 

Net Sales

 

$

4,571.2

 

 

$

975.7

 

 

$

321.0

 

 

$

-

 

 

$

5,867.9

 

Cost of sales

 

 

2,434.0

 

 

 

568.7

 

 

 

216.3

 

 

 

60.4

 

 

 

3,279.4

 

Gross Profit

 

 

2,137.2

 

 

 

407.0

 

 

 

104.7

 

 

 

(60.4

)

 

 

2,588.5

 

Marketing expenses

 

 

509.5

 

 

 

127.7

 

 

 

4.1

 

 

 

-

 

 

 

641.3

 

Research and Development(2)

 

 

107.1

 

 

 

11.1

 

 

 

4.2

 

 

 

-

 

 

 

122.4

 

Selling, general and administrative expenses

 

 

590.9

 

 

 

164.0

 

 

 

72.9

 

 

 

(60.4

)

 

 

767.4

 

Income from Operations

 

 

929.7

 

 

 

104.2

 

 

 

23.5

 

 

 

-

 

 

 

1,057.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

Consumer Domestic

 

 

Consumer International

 

 

SPD

 

 

Corporate(1)

 

 

Total Consolidated

 

Net Sales

 

$

4,131.0

 

 

$

896.1

 

 

$

348.5

 

 

 

-

 

 

$

5,375.6

 

Cost of sales

 

 

2,336.9

 

 

 

523.7

 

 

 

230.7

 

 

 

34.3

 

 

 

3,125.6

 

Gross Profit

 

 

1,794.1

 

 

 

372.4

 

 

 

117.8

 

 

 

(34.3

)

 

 

2,250.0

 

Marketing expenses

 

 

412.9

 

 

 

117.7

 

 

 

4.6

 

 

 

-

 

 

 

535.2

 

Research and Development(2)

 

 

96.2

 

 

 

10.0

 

 

 

3.8

 

 

 

-

 

 

 

110.0

 

Selling, general and administrative expenses

 

 

436.6

 

 

 

136.8

 

 

 

56.9

 

 

 

(34.3

)

 

 

596.0

 

Flawless Trade name and other asset impairments

 

 

349.3

 

 

 

61.7

 

 

 

-

 

 

 

-

 

 

 

411.0

 

Income from Operations

 

 

499.1

 

 

 

46.2

 

 

 

52.5

 

 

 

-

 

 

 

597.8

 

 

(1)
Corporate reflects the administrative costs of the production planning and logistics functions which are elements of Cost of Sales in the Company’s Consolidated Statements of Income but are allocated to the operating segments in Selling, General and Administrative expenses to determine operating segment income before income taxes. The increase in 2023 compared to 2022 is primarily due to higher incentive compensation costs.
(2)
All costs for Research & Development administration, global compliance, technology support, packaging and sustainability are reported in the Consumer Domestic segment.

 

Other segment expenses for each of the three years in the period ended December 31, 2024 include the following:

 

 

Consumer Domestic

 

 

Consumer International

 

 

SPD

 

 

Corporate

 

 

Total Consolidated

 

Depreciation & Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

$

198.7

 

 

$

29.1

 

 

$

10.2

 

 

$

1.1

 

 

$

239.1

 

2023

 

 

182.7

 

 

 

27.7

 

 

 

13.6

 

 

 

1.2

 

 

 

225.2

 

2022

 

 

172.1

 

 

 

30.1

 

 

 

13.8

 

 

 

3.0

 

 

 

219.0

 

Other than the differences noted in the footnote above, the accounting policies followed by each of the segments, including intersegment transactions, are substantially consistent with the accounting policies described in Note 1.

Product line revenues from external customers for each of the three years ended December 31, 2024, 2023 and 2022 were as follows:

 

 

 

2024

 

 

2023

 

 

2022

 

Household Products

 

$

2,584.3

 

 

$

2,484.1

 

 

$

2,272.0

 

Personal Care Products

 

 

2,148.0

 

 

 

2,087.1

 

 

 

1,859.0

 

Total Consumer Domestic

 

 

4,732.3

 

 

 

4,571.2

 

 

 

4,131.0

 

Total Consumer International

 

 

1,071.5

 

 

 

975.7

 

 

 

896.1

 

Total SPD

 

 

303.3

 

 

 

321.0

 

 

 

348.5

 

Total Consolidated Net Sales

 

$

6,107.1

 

 

$

5,867.9

 

 

$

5,375.6

 

Household Products include laundry, deodorizing, and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin care products, hair care products and gummy dietary supplements.

Geographic Information

Approximately 82%, 83% and 83% of the net sales reported in the accompanying consolidated financial statements in 2024, 2023 and 2022, respectively, were to customers in the U.S. Approximately 96%, 96% and 97% of long-lived assets were located in the U.S. at December 31, 2024, 2023 and 2022, respectively. Other than the U.S., no one country accounts for more than 5% of consolidated net sales and 5% of total assets.

Customers

A group of four customers accounted for approximately 43% and 44% of consolidated net sales in 2024 and 2023, respectively. A group of four customers accounted for approximately 42% of consolidated net sales in 2022, of which a single customer (Walmart Inc. and its affiliates) accounted for approximately 23%, 23% and 24% in 2024, 2023 and 2022, respectively.