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, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	215,302	$	20,957	$	21,767	$	258,026
Cost of sales	87,184		9,296		17,448		113,928
Gross profit	128,118		11,661		4,319		144,098
Advertising and promotion	35,064		3,593		531		39,188
Contribution margin	$	93,054	$	8,068	$	3,788	104,910
Other operating expenses							28,753
Operating income							76,157
Other expense							26,836
Income before income taxes							49,321
Provision for income taxes							18,616
Net income							$	30,705

* Intersegment revenues of $2.3 million were eliminated from the North America OTC Healthcare segment.



	Six Months Ended September 30, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	431,117	$	41,855	$	41,627	$	514,599
Cost of sales	173,685		19,246		34,094		227,025
Gross profit	257,432		22,609		7,533		287,574
Advertising and promotion	67,872		7,283		977		76,132
Contribution margin	$	189,560	$	15,326	$	6,556	211,442
Other operating expenses							56,256
Operating income							155,186
Other expense							53,177
Income before income taxes							102,009
Provision for income taxes							37,545
Net income							$	64,464

* Intersegment revenues of $3.7 million were eliminated from the North American OTC Healthcare segment.



	Three Months Ended September 30, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
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

* Intersegment revenues of $0.1 million were eliminated from the North American OTC Healthcare segment.

**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
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

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

**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.

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



	Three Months Ended September 30, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	29,348	$	40	$	—	$	29,388
Cough & Cold	21,567		4,659		—		26,226
Women's Health	61,436		1,906		—		63,342
Gastrointestinal	28,323		8,139		—		36,462
Eye & Ear Care	22,535		2,590		—		25,125
Dermatologicals	25,821		524		—		26,345
Oral Care	24,990		3,097		—		28,087
Other OTC	1,282		2		—		1,284
Household Cleaning	—		—		21,767		21,767
Total segment revenues	$	215,302	$	20,957	$	21,767	$	258,026



	Six Months Ended September 30, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	58,638	$	549	$	—	$	59,187
Cough & Cold	38,977		9,272		—		48,249
Women's Health	124,581		5,500		—		130,081
Gastrointestinal	58,753		13,872		—		72,625
Eye & Ear Care	47,806		5,645		—		53,451
Dermatologicals	49,952		1,025		—		50,977
Oral Care	49,882		5,989		—		55,871
Other OTC	2,528		3		—		2,531
Household Cleaning	—		—		41,627		41,627
Total segment revenues	$	431,117	$	41,855	$	41,627	$	514,599



	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

During the three months ended September 30, 2017 and 2016, approximately 87.3% and 85.8%, respectively, of our total segment revenues were from customers in the United States. During the six months ended September 30, 2017 and 2016, approximately 87.5% and 86.7%, 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, 2017, our Canada and Australia sales accounted for approximately 4.5% and 4.5%, respectively, of our total segment revenues, while 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. During the six months ended September 30, 2017, our Canada and Australia sales accounted for approximately 4.2% and 4.3%, respectively, of our total segment revenues, while 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.

At September 30, 2017 and March 31, 2017, approximately 96.4% of our consolidated goodwill and intangible assets were located in the United States and approximately 3.6% were located in Australia, the United Kingdom and Singapore. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:



September 30, 2017 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	580,934	$	33,209	$	6,245	$	620,388

Intangible assets
Indefinite-lived	2,404,336		85,626		101,261		2,591,223
Finite-lived, net	276,512		6,343		20,062		302,917
Intangible assets, net	2,680,848		91,969		121,323		2,894,140
Total	$	3,261,782	$	125,178	$	127,568	$	3,514,528



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