Business Segments

Segment information has been prepared in accordance with the Segment Reporting topic of the FASB ASC 280. Our current reportable segments consist of (i) North American OTC Healthcare, (ii) International OTC Healthcare and (iii) Household Cleaning. We evaluate the performance of our operating segments and allocate resources to these segments based primarily on contribution margin, which we define as gross profit less advertising and promotional expenses.

The tables below summarize information about our reportable segments.



	Three Months Ended September 30, 2016
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	172,590		$	18,802	$	23,768	$	215,160
Elimination of intersegment revenues	(143		)	—		—		(143		)
Third-party segment revenues	172,447			18,802		23,768		215,017
Other revenues	—			2		33		35
Total segment revenues	172,447			18,804		23,801		215,052
Cost of sales	65,402			7,096		18,589		91,087
Gross profit	107,045			11,708		5,212		123,965
Advertising and promotion	24,811			3,244		537		28,592
Contribution margin	$	82,234		$	8,464	$	4,675	95,373
Other operating expenses*								24,315
Operating income								71,058
Other expense								20,830
Income before income taxes								50,228
Provision for income taxes								18,033
Net income								$	32,195

*Other operating expenses for the three months ended September 30, 2016 includes a pre-tax loss on sale of assets of $0.7 million related to Pediacare, New Skin, and Fiber Choice and a pre-tax gain on sale of assets of $1.2 million associated with the sale of license rights in certain geographic areas pertaining to Comet. The assets and corresponding contribution margin associated with the pre-tax loss on sale of assets related to Pediacare, New Skin, and Fiber Choice are included within the North American OTC Healthcare segment, while the pre-tax gain on sale of license rights related to Comet are included in the Household Cleaning segment.



	Six Months Ended September 30, 2016
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	345,891		$	34,602	$	44,658	$	425,151
Elimination of intersegment revenues	(1,364		)	—		—		(1,364		)
Third-party segment revenues	344,527			34,602		44,658		423,787
Other revenues	—			6		834		840
Total segment revenues	344,527			34,608		45,492		424,627
Cost of sales	129,636			14,044		35,391		179,071
Gross profit	214,891			20,564		10,101		245,556
Advertising and promotion	49,851			5,368		1,008		56,227
Contribution margin	$	165,040		$	15,196	$	9,093	189,329
Other operating expenses*								106,057
Operating income								83,272
Other expense								41,957
Income before income taxes								41,315
Provision for income taxes								14,651
Net income								$	26,664

*Other operating expenses for the six months ended September 30, 2016 includes a pre-tax loss on sale of assets of $56.2 million related to Pediacare, New Skin, and Fiber Choice and a pre-tax gain on sale of assets of $1.2 million associated with the sale of license rights in certain geographic areas pertaining to Comet. The assets and corresponding contribution margin associated with the pre-tax loss on sale of assets related to Pediacare, New Skin, and Fiber Choice are included within the North American OTC Healthcare segment, while the pre-tax gain on sale of license rights related to Comet are included in the Household Cleaning segment.



	Three Months Ended September 30, 2015
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues**	$	166,886		$	15,954	$	23,894	$	206,734
Elimination of intersegment revenues	(1,472		)	—		—		(1,472		)
Third-party segment revenues	165,414			15,954		23,894		205,262
Other revenues**	—			6		797		803
Total segment revenues	165,414			15,960		24,691		206,065
Cost of sales**	61,497			6,094		18,534		86,125
Gross profit	103,917			9,866		6,157		119,940
Advertising and promotion	24,440			2,777		676		27,893
Contribution margin	$	79,477		$	7,089	$	5,481	92,047
Other operating expenses								22,149
Operating income								69,898
Other expense								20,667
Income before income taxes								49,231
Provision for income taxes								17,428
Net income								$	31,803



	Six Months Ended September 30, 2015
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues**	$	323,978		$	29,410	$	45,361	$	398,749
Elimination of intersegment revenues	(2,200		)	—		—		(2,200		)
Third-party segment revenues	321,778			29,410		45,361		396,549
Other revenues**	15			31		1,602		1,648
Total segment revenues	321,793			29,441		46,963		398,197
Cost of sales**	119,624			11,383		35,014		166,021
Gross profit	202,169			18,058		11,949		232,176
Advertising and promotion	47,635			5,500		1,180		54,315
Contribution margin	$	154,534		$	12,558	$	10,769	177,861
Other operating expenses								45,458
Operating income								132,403
Other expense								43,002
Income before income taxes								89,401
Provision for income taxes								31,425
Net income								$	57,976

**Certain immaterial amounts relating to gross segment revenues, other revenues and cost of sales for each of the three and six months ended September 30, 2015 were reclassified between the International OTC Healthcare segment and the North American OTC Healthcare segment. There were no changes to the consolidated financial statements for any periods presented.

The tables below summarize information about our segment revenues from similar product groups.



	Three Months Ended September 30, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	29,993	$	544	$	—	$	30,537
Cough & Cold	21,106		5,160		—		26,266
Women's Health	33,268		635		—		33,903
Gastrointestinal	16,280		6,088		—		22,368
Eye & Ear Care	22,934		2,989		—		25,923
Dermatologicals	22,952		567		—		23,519
Oral Care	24,368		2,820		—		27,188
Other OTC	1,546		1		—		1,547
Household Cleaning	—		—		23,801		23,801
Total segment revenues	$	172,447	$	18,804	$	23,801	$	215,052



	Six Months Ended September 30, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	58,119	$	1,071	$	—	$	59,190
Cough & Cold	39,073		9,552		—		48,625
Women's Health	66,155		1,571		—		67,726
Gastrointestinal	35,386		10,344		—		45,730
Eye & Ear Care	48,941		5,785		—		54,726
Dermatologicals	45,650		1,238		—		46,888
Oral Care	48,179		5,037		—		53,216
Other OTC	3,024		10		—		3,034
Household Cleaning	—		—		45,492		45,492
Total segment revenues	$	344,527	$	34,608	$	45,492	$	424,627



	Three Months Ended September 30, 2015
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	29,694	$	688	$	—	$	30,382
Cough & Cold	24,456		4,746		—		29,202
Women's Health	33,607		804		—		34,411
Gastrointestinal	19,061		5,342		—		24,403
Eye & Ear Care	24,163		3,578		—		27,741
Dermatologicals	23,197		611		—		23,808
Oral Care	9,733		189		—		9,922
Other OTC	1,503		2		—		1,505
Household Cleaning	—		—		24,691		24,691
Total segment revenues	$	165,414	$	15,960	$	24,691	$	206,065



	Six Months Ended September 30, 2015
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	56,542	$	1,218	$	—	$	57,760
Cough & Cold	44,215		9,252		—		53,467
Women's Health	66,515		1,504		—		68,019
Gastrointestinal	39,381		9,150		—		48,531
Eye & Ear Care	49,223		6,780		—		56,003
Dermatologicals	43,292		1,145		—		44,437
Oral Care	19,710		383		—		20,093
Other OTC	2,915		9		—		2,924
Household Cleaning	—		—		46,963		46,963
Total segment revenues	$	321,793	$	29,441	$	46,963	$	398,197

During the three months ended September 30, 2016 and 2015, approximately 85.8% of our total segment revenues were from customers in the United States. During the six months ended September 30, 2016 and 2015, approximately 86.7% and 86.5%, respectively, of our total segment revenues were from customers in the United States. Other than the United States, no individual geographical area accounted for more than 10% of net sales in any of the periods presented. During the three months ended September 30, 2016, our Canada and Australia sales accounted for approximately 5.4% and 5.9%, respectively, of our total segment revenues, while during the three months ended September 30, 2015, approximately 5.5% and 6.8%, respectively, of our total segment revenues were attributable to sales to Canada and Australia. During the six months ended September 30, 2016, our Canada and Australia sales accounted for approximately 5.1% and 5.5%, respectively, of our total segment revenues, while during the six months ended September 30, 2015, approximately 5.3% and 6.3%, respectively, of our total segment revenues were attributable to sales to Canada and Australia.

At September 30, 2016 and March 31, 2016, approximately 95.7% of our consolidated goodwill and intangible assets were located in the United States and approximately 4.3% were located in Australia and the United Kingdom. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:



September 30, 2016 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	322,945	$	22,472	$	6,245	$	351,662

Intangible assets
Indefinite-lived	1,755,636		85,520		101,262		1,942,418
Finite-lived	215,817		1,087		21,806		238,710
Intangible assets, net	1,971,453		86,607		123,068		2,181,128
Total	$	2,294,398	$	109,079	$	129,313	$	2,532,790



March 31, 2016 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	330,615	$	22,776	$	6,800	$	360,191

Intangible assets
Indefinite-lived	1,823,873		85,901		110,272		2,020,046
Finite-lived	277,762		2,237		22,678		302,677
Intangible assets, net	2,101,635		88,138		132,950		2,322,723
Total	$	2,432,250	$	110,914	$	139,750	$	2,682,914