Business Segments

Segment information has been prepared in accordance with the Segment Reporting topic of 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 operating and reportable segments.



	Year Ended March 31, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	868,874	$	91,658	$	80,647	$	1,041,179
Cost of sales	357,298		40,244		67,132		464,674
Gross profit	511,576		51,414		13,515		576,505
Advertising and promotion	129,058		16,267		1,961		147,286
Contribution margin	$	382,518	$	35,147	$	11,554	429,219
Other operating expenses**							213,353
Operating income							215,866
Other expense							108,780
Income before income taxes							107,086
Benefit for income taxes							(232,484		)
Net income							$	339,570

*Intersegment revenues of $7.7 million were eliminated from the North American OTC Healthcare segment.

**Other operating expenses for the year ended March 31, 2018 includes a tradename impairment charge of $99.9 million.



	Year Ended March 31, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	720,824	$	73,304	$	87,932	$	882,060
Cost of sales	282,750		30,789		68,235		381,774
Gross profit	438,074		42,515		19,697		500,286
Advertising and promotion	112,465		13,434		2,460		128,359
Contribution margin	$	325,609	$	29,081	$	17,237	371,927
Other operating expenses**							166,314
Operating income							205,613
Other expense							94,763
Income before income taxes							110,850
Provision for income taxes							41,455
Net income							$	69,395

* Intersegment revenues of $4.2 million were eliminated from the North American OTC Healthcare segment.

**Other operating expenses for the year ended March 31, 2017 includes a pre-tax net loss of $51.8 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.



	Year Ended March 31, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	657,871	$	57,713	$	90,663	$	806,247
Cost of sales	250,018		21,676		67,342		339,036
Gross profit	407,853		36,037		23,321		467,211
Advertising and promotion	97,393		11,114		2,295		110,802
Contribution margin	$	310,460	$	24,923	$	21,026	356,409
Other operating expenses							96,094
Operating income							260,315
Other expense							103,130
Income before income taxes							157,185
Provision for income taxes							57,278
Net income							$	99,907

*Intersegment revenues of $2.7 million were eliminated from the North America OTC Healthcare segment.

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



	Year Ended March 31, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	118,610	$	807	$	—	$	119,417
Cough & Cold	93,537		18,310		—		111,847
Women's Health	247,244		12,140		—		259,384
Gastrointestinal	117,627		34,609		—		152,236
Eye & Ear Care	92,308		11,744		—		104,052
Dermatologicals	94,775		2,113		—		96,888
Oral Care	99,072		11,930		—		111,002
Other OTC	5,701		5		—		5,706
Household Cleaning	—		—		80,647		80,647
Total segment revenues	$	868,874	$	91,658	$	80,647	$	1,041,179



	Year Ended March 31, 2017
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	120,253	$	1,922	$	—	$	122,175
Cough & Cold	90,795		17,990		—		108,785
Women's Health	147,071		3,811		—		150,882
Gastrointestinal	76,500		24,812		—		101,312
Eye & Ear Care	97,618		12,075		—		109,693
Dermatologicals	85,194		2,159		—		87,353
Oral Care	97,586		10,513		—		108,099
Other OTC	5,807		22		—		5,829
Household Cleaning	—		—		87,932		87,932
Total segment revenues	$	720,824	$	73,304	$	87,932	$	882,060



	Year Ended March 31, 2016
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	117,337	$	2,128	$	—	$	119,465
Cough & Cold	100,148		16,422		—		116,570
Women's Health	132,184		2,982		—		135,166
Gastrointestinal	74,568		20,019		—		94,587
Eye & Ear Care	95,515		11,983		—		107,498
Dermatologicals	82,941		2,133		—		85,074
Oral Care	49,099		2,026		—		51,125
Other OTC	6,079		20		—		6,099
Household Cleaning	—		—		90,663		90,663
Total segment revenues	$	657,871	$	57,713	$	90,663	$	806,247

Our total segment revenues by geographic area are as follows:



	Year Ended March 31,
	2018		2017		2016
United States	$	903,511	$	769,732	$	704,360
Rest of world	137,668		112,328		101,887
Total	$	1,041,179	$	882,060	$	806,247

Our consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:



March 31, 2018 (In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	580,934	$	32,919	$	6,245	$	620,098

Intangible assets
Indefinite-lived	2,375,736		84,006		30,561		2,490,303
Finite-lived	265,356		6,068		19,189		290,613
Intangible assets, net	2,641,092		90,074		49,750		2,780,916
Total	$	3,222,026	$	122,993	$	55,995	$	3,401,014



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	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

Our goodwill and intangible assets by geographic area are as follows:



	Year Ended March 31,
	2018		2017
United States	$	3,278,021	$	3,396,285
Rest of world	122,993		122,580
Total	$	3,401,014	$	3,518,865