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 June 30, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	215,815	$	20,898	$	19,860	$	256,573
Cost of sales	86,501		9,950		16,646		113,097
Gross profit	129,314		10,948		3,214		143,476
Advertising and promotion	32,808		3,690		446		36,944
Contribution margin	$	96,506	$	7,258	$	2,768	106,532
Other operating expenses							27,503
Operating income							79,029
Other expense							26,341
Income before income taxes							52,688
Provision for income taxes							18,929
Net income							$	33,759

* Intersegment revenues of $1.4 million were eliminated from the North American OTC Healthcare segment.



	Three Months Ended June 30, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	172,080	$	15,804	$	21,691	$	209,575
Cost of sales**	64,234		6,948		16,802		87,984
Gross profit	107,846		8,856		4,889		121,591
Advertising and promotion	25,040		2,124		471		27,635
Contribution margin	$	82,806	$	6,732	$	4,418	93,956
Other operating expenses***							81,742
Operating income							12,214
Other expense							21,127
Loss before income taxes							(8,913		)
Benefit for income taxes							(3,382		)
Net loss							$	(5,531	)

* Intersegment revenues of $1.2 million were eliminated from the North American OTC Healthcare segment.

**Certain immaterial amounts related to cost of sales were reclassified between the International OTC Healthcare segment and the North American OTC Healthcare segment. There were no changes to the condensed consolidated financial statements for any periods presented.

***Other operating expenses includes a pre-tax loss on sale of assets of $55.5 million recognized for assets held for sale related to Pediacare, New Skin and Fiber Choice. These assets and corresponding contribution margin are included within the North American OTC Healthcare segment.

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



	Three Months Ended June 30, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	29,290	$	509	$	—	$	29,799
Cough & Cold	17,410		4,613		—		22,023
Women's Health	63,145		3,594		—		66,739
Gastrointestinal	30,430		5,733		—		36,163
Eye & Ear Care	25,271		3,055		—		28,326
Dermatologicals	24,131		501		—		24,632
Oral Care	24,892		2,892		—		27,784
Other OTC	1,246		1		—		1,247
Household Cleaning	—		—		19,860		19,860
Total segment revenues	$	215,815	$	20,898	$	19,860	$	256,573



	Three Months Ended June 30, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	28,126	$	527	$	—	$	28,653
Cough & Cold	17,967		4,392		—		22,359
Women's Health	32,887		936		—		33,823
Gastrointestinal	19,106		4,256		—		23,362
Eye & Ear Care	26,007		2,796		—		28,803
Dermatologicals	22,698		671		—		23,369
Oral Care	23,811		2,217		—		26,028
Other OTC	1,478		9		—		1,487
Household Cleaning	—		—		21,691		21,691
Total segment revenues	$	172,080	$	15,804	$	21,691	$	209,575

During the three months ended June 30, 2017 and 2016, approximately 87.7% and 87.5%, 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 June 30, 2017, our Canada and Australia sales accounted for approximately 3.8% and 4.1%, respectively, of our total segment revenues, while during the three months ended June 30, 2016, approximately 4.7% and 5.0%, respectively, of our total segment revenues were attributable to sales to Canada and Australia.

At June 30, 2017 and March 31, 2017, approximately 96.5% of our consolidated goodwill and intangible assets were located in the United States and approximately 3.5% were located in Australia, the United Kingdom and Singapore. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:



June 30, 2017 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	576,453	$	32,753	$	6,245	$	615,451

Intangible assets
Indefinite-lived	2,404,336		84,018		101,261		2,589,615
Finite-lived, net	281,784		6,376		20,498		308,658
Intangible assets, net	2,686,120		90,394		121,759		2,898,273
Total	$	3,262,573	$	123,147	$	128,004	$	3,513,724



March 31, 2017 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	576,453	$	32,554	$	6,245	$	615,252

Intangible assets
Indefinite-lived	2,404,336		83,558		101,261		2,589,155
Finite-lived, net	287,056		6,468		20,934		314,458
Intangible assets, net	2,691,392		90,026		122,195		2,903,613
Total	$	3,267,845	$	122,580	$	128,440	$	3,518,865