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 and (ii) International OTC Healthcare. We sold our Household Cleaning segment on July 2, 2018; see Note 3 for further information. 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, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	215,950	$	23,407	$	—	$	239,357
Cost of sales	92,007		9,878		—		101,885
Gross profit	123,943		13,529		—		137,472
Advertising and promotion	33,325		3,717		—		37,042
Contribution margin	$	90,618	$	9,812	$	—	100,430
Other operating expenses							29,506
Operating income							70,924
Other expense							27,405
Income before income taxes							43,519
Provision for income taxes							12,678
Net income							$	30,841

* Intersegment revenues of $1.6 million were eliminated from the North American OTC Healthcare segment.



	Six Months Ended September 30, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Total segment revenues*	$	430,725	$	42,801	$	19,811	$	493,337
Cost of sales	181,160		17,494		16,588		215,242
Gross profit	249,565		25,307		3,223		278,095
Advertising and promotion	66,583		7,140		430		74,153
Contribution margin	$	182,982	$	18,167	$	2,793	203,942
Other operating expenses							60,531
Operating income							143,411
Other expense							53,432
Income before income taxes							89,979
Provision for income taxes							24,672
Net income							$	65,307

* Intersegment revenues of $4.3 million were eliminated from the North American OTC Healthcare segment.



	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							29,185
Operating income							75,725
Other expense							26,404
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 American 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							56,762
Operating income							154,680
Other expense							52,671
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.

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



	Three Months Ended September 30, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	28,638	$	125	$	—	$	28,763
Cough & Cold	20,492		5,734		—		26,226
Women's Health	61,614		3,270		—		64,884
Gastrointestinal	30,529		7,950		—		38,479
Eye & Ear Care	24,845		2,995		—		27,840
Dermatologicals	25,338		605		—		25,943
Oral Care	23,142		2,727		—		25,869
Other OTC	1,352		1		—		1,353
Household Cleaning	—		—		—		—
Total segment revenues	$	215,950	$	23,407	$	—	$	239,357



	Six Months Ended September 30, 2018
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	56,896	$	282	$	—	$	57,178
Cough & Cold	36,706		10,905		—		47,611
Women's Health	125,091		5,527		—		130,618
Gastrointestinal	63,328		13,940		—		77,268
Eye & Ear Care	50,317		5,614		—		55,931
Dermatologicals	50,460		1,137		—		51,597
Oral Care	45,339		5,394		—		50,733
Other OTC	2,588		2		—		2,590
Household Cleaning	—		—		19,811		19,811
Total segment revenues	$	430,725	$	42,801	$	19,811	$	493,337



	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

Our total segment revenues by geographic area are as follows:



	Three Months Ended September 30,				Six Months Ended September 30,
	2018		2017		2018		2017
United States	$	203,763	$	225,351	$	427,240	$	450,345
Rest of world	35,594		32,675		66,097		64,254
Total	$	239,357	$	258,026	$	493,337	$	514,599

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



September 30, 2018	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
(In thousands)
Goodwill	$	580,934	$	31,510	$	—	$	612,444

Intangible assets
Indefinite-lived	2,375,737		78,887		—		2,454,624
Finite-lived, net	254,876		5,570		—		260,446
Intangible assets, net	2,630,613		84,457		—		2,715,070
Total	$	3,211,547	$	115,967	$	—	$	3,327,514



March 31, 2018	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
(In thousands)
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, net	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