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 December 31, 2016
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	178,097		$	18,459	$	21,000	$	217,556
Elimination of intersegment revenues	(824		)	—		—		(824		)
Third-party segment revenues	177,273			18,459		21,000		216,732
Other revenues	—			—		31		31
Total segment revenues	177,273			18,459		21,031		216,763
Cost of sales	68,378			7,678		16,160		92,216
Gross profit	108,895			10,781		4,871		124,547
Advertising and promotion	26,800			3,502		380		30,682
Contribution margin	$	82,095		$	7,279	$	4,491	93,865
Other operating expenses*								24,578
Operating income								69,287
Other expense								18,554
Income before income taxes								50,733
Provision for income taxes								19,092
Net income								$	31,641

*Other operating expenses for the three months ended December 31, 2016 includes a pre-tax net gain on divestitures of $3.4 million related primarily to e.p.t and Dermoplast. The assets and corresponding contribution margin associated with the pre-tax net gain on these divestitures are included within the North American OTC Healthcare segment.



	Nine Months Ended December 31, 2016
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	523,988		$	53,061	$	65,658	$	642,707
Elimination of intersegment revenues	(2,188		)	—		—		(2,188		)
Third-party segment revenues	521,800			53,061		65,658		640,519
Other revenues	—			6		865		871
Total segment revenues	521,800			53,067		66,523		641,390
Cost of sales	198,014			21,722		51,551		271,287
Gross profit	323,786			31,345		14,972		370,103
Advertising and promotion	76,651			8,870		1,388		86,909
Contribution margin	$	247,135		$	22,475	$	13,584	283,194
Other operating expenses*								130,635
Operating income								152,559
Other expense								60,511
Income before income taxes								92,048
Provision for income taxes								33,743
Net income								$	58,305

*Other operating expenses for the nine months ended December 31, 2016 includes a pre-tax net loss of $51.6 million related to divestitures. These divestitures include Pediacare, New Skin, Fiber Choice, e.p.t, Dermoplast, and license rights in certain geographic areas pertaining to Comet. The assets and corresponding contribution margin associated with the pre-tax net loss on divestitures related to Pediacare, New Skin, Fiber Choice, e.p.t and Dermoplast 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 December 31, 2015
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues**	$	165,287		$	13,803	$	20,623	$	199,713
Elimination of intersegment revenues	(228		)	—		—		(228		)
Third-party segment revenues	165,059			13,803		20,623		199,485
Other revenues**	—			9		701		710
Total segment revenues	165,059			13,812		21,324		200,195
Cost of sales**	62,655			4,964		15,792		83,411
Gross profit	102,404			8,848		5,532		116,784
Advertising and promotion	26,472			2,838		625		29,935
Contribution margin	$	75,932		$	6,010	$	4,907	86,849
Other operating expenses								24,206
Operating income								62,643
Other expense								19,462
Income before income taxes								43,181
Provision for income taxes								15,186
Net income								$	27,995



	Nine Months Ended December 31, 2015
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues**	$	489,265		$	43,213	$	65,984	$	598,462
Elimination of intersegment revenues	(2,428		)	—		—		(2,428		)
Third-party segment revenues	486,837			43,213		65,984		596,034
Other revenues**	15			40		2,303		2,358
Total segment revenues	486,852			43,253		68,287		598,392
Cost of sales**	182,279			16,347		50,806		249,432
Gross profit	304,573			26,906		17,481		348,960
Advertising and promotion	74,107			8,338		1,805		84,250
Contribution margin	$	230,466		$	18,568	$	15,676	264,710
Other operating expenses								69,664
Operating income								195,046
Other expense								62,464
Income before income taxes								132,582
Provision for income taxes								46,611
Net income								$	85,971

**Certain immaterial amounts relating to gross segment revenues, other revenues and cost of sales for each of the three and nine months ended December 31, 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 December 31, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	32,439	$	444	$	—	$	32,883
Cough & Cold	29,803		4,166		—		33,969
Women's Health	30,896		580		—		31,476
Gastrointestinal	15,109		6,701		—		21,810
Eye & Ear Care	23,571		2,997		—		26,568
Dermatologicals	19,948		479		—		20,427
Oral Care	24,129		3,083		—		27,212
Other OTC	1,378		9		—		1,387
Household Cleaning	—		—		21,031		21,031
Total segment revenues	$	177,273	$	18,459	$	21,031	$	216,763



	Nine Months Ended December 31, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	90,558	$	1,515	$	—	$	92,073
Cough & Cold	68,876		13,718		—		82,594
Women's Health	97,051		2,151		—		99,202
Gastrointestinal	50,495		17,045		—		67,540
Eye & Ear Care	72,512		8,782		—		81,294
Dermatologicals	65,598		1,717		—		67,315
Oral Care	72,308		8,120		—		80,428
Other OTC	4,402		19		—		4,421
Household Cleaning	—		—		66,523		66,523
Total segment revenues	$	521,800	$	53,067	$	66,523	$	641,390



	Three Months Ended December 31, 2015
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	30,454	$	450	$	—	$	30,904
Cough & Cold	30,466		3,696		—		34,162
Women's Health	33,521		877		—		34,398
Gastrointestinal	17,401		5,517		—		22,918
Eye & Ear Care	21,936		2,613		—		24,549
Dermatologicals	19,734		524		—		20,258
Oral Care	9,996		126		—		10,122
Other OTC	1,551		9		—		1,560
Household Cleaning	—		—		21,324		21,324
Total segment revenues	$	165,059	$	13,812	$	21,324	$	200,195



	Nine Months Ended December 31, 2015
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	86,996	$	1,668	$	—	$	88,664
Cough & Cold	74,681		12,948		—		87,629
Women's Health	100,036		2,381		—		102,417
Gastrointestinal	56,782		14,667		—		71,449
Eye & Ear Care	71,159		9,393		—		80,552
Dermatologicals	63,026		1,669		—		64,695
Oral Care	29,706		509		—		30,215
Other OTC	4,466		18		—		4,484
Household Cleaning	—		—		68,287		68,287
Total segment revenues	$	486,852	$	43,253	$	68,287	$	598,392

During the three months ended December 31, 2016 and 2015, approximately 86.7% and 87.8%, respectively, of our total segment revenues were from customers in the United States. During the nine months ended December 31, 2016 and 2015, approximately 86.7% and 86.9%, 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 December 31, 2016, our Canada and Australia sales accounted for approximately 4.7% and 5.3%, respectively, of our total segment revenues, while during the three months ended December 31, 2015, approximately 5.0% and 5.0%, respectively, of our total segment revenues were attributable to sales to Canada and Australia. During the nine months ended December 31, 2016, our Canada and Australia sales accounted for approximately 4.9% and 5.4%, respectively, of our total segment revenues, while during the nine months ended December 31, 2015, approximately 5.2% and 5.9%, respectively, of our total segment revenues were attributable to sales to Canada and Australia.

At December 31, 2016 and March 31, 2016, approximately 95.9% of our consolidated goodwill and intangible assets were located in the United States and approximately 4.1% were located in Australia and the United Kingdom. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:



December 31, 2016 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	318,014	$	21,226	$	6,245	$	345,485

Intangible assets
Indefinite-lived	1,755,635		80,716		101,262		1,937,613
Finite-lived	196,391		1,004		21,370		218,765
Intangible assets, net	1,952,026		81,720		122,632		2,156,378
Total	$	2,270,040	$	102,946	$	128,877	$	2,501,863



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