v3.5.0.2
SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
SEGMENT INFORMATION
On July 9, 2015, the Company announced the signing of a definitive agreement to divest four product categories, initially comprised of 43 of its beauty brands (“Beauty Brands”), which will be merged with Coty Inc. ("Coty"). The transaction includes the global salon professional hair care and color, retail hair color, cosmetics and fine fragrance businesses, along with select hair styling brands and is expected to close in October 2016. In February 2016, the Company completed the divestiture of its Batteries business to Berkshire Hathaway. The Company completed the divestiture of its Pet Care business in the previous fiscal year. Each of these businesses are reported as discontinued operations for all periods presented (see Note 13).
Under U.S. GAAP, our remaining Global Business Units (GBUs) are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of:
•
Beauty: Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care);
•
Grooming: Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Appliances;
•
Health Care: Oral Care (Toothbrushes, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care);
•
Fabric & Home Care: Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care ); and
•
Baby, Feminine & Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper).
The accounting policies of the segments are generally the same as those described in Note 1. Differences between these policies and U.S. GAAP primarily reflect income taxes, which are reflected in the segments using applicable blended statutory rates. Adjustments to arrive at our effective tax rate are included in Corporate.
Corporate includes certain operating and non-operating activities that are not reflected in the operating results used internally to measure and evaluate the businesses, as well as items to adjust management reporting principles to U.S. GAAP. Operating activities in Corporate include the results of incidental businesses managed at the corporate level. Operating elements also include certain employee benefit costs, the costs of certain restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain acquisition and divestiture gains and interest and investing income.
Total assets for the reportable segments include those assets managed by the reportable segment, primarily inventory, fixed assets and intangible assets. Other assets, primarily cash, accounts receivable, investment securities and goodwill, are included in Corporate.
Our business units are comprised of similar product categories. Nine business units individually accounted for 5% or more of consolidated net sales as follows:
% of Sales by Business Unit*
Years ended June 30
2016
 
2015
 
2014
Fabric Care
22%
 
22%
 
22%
Baby Care
14%
 
15%
 
15%
Hair Care
10%
 
11%
 
11%
Home Care
10%
 
9%
 
9%
Shave Care
9%
 
9%
 
10%
Family Care
8%
 
8%
 
7%
Oral Care
8%
 
8%
 
7%
Skin and Personal Care
8%
 
7%
 
7%
Feminine Care
6%
 
6%
 
6%
All Other
5%
 
5%
 
6%
TOTAL
100%
 
100%
 
100%
*
% of sales by business unit excludes sales held in Corporate.
The Company had net sales in the U.S. of $27.0 billion, $26.8 billion and $26.7 billion for the years ended June 30, 2016, 2015 and 2014, respectively. Long-lived assets in the U.S. totaled $8.5 billion and $8.3 billion as of June 30, 2016 and 2015, respectively. Long-lived assets consists of property, plant and equipment. No other country's net sales or long-lived assets exceed 10% of the Company totals.
Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 15% of consolidated net sales in 2016, 2015 and 2014. No other customer represents more than 10% of our consolidated net sales.
Global Segment Results
 
 
Net Sales
 
Earnings/(Loss)
from
Continuing
Operations
Before
Income Taxes
 
Net Earnings/(Loss) from Continuing Operations
 
Depreciation
and
Amortization
 
Total
Assets
 
Capital
Expenditures
BEAUTY  (1)
2016
 
$
11,477

 
$
2,636

 
$
1,975

 
$
218

 
$
3,888

 
$
435

 
2015
 
12,608

 
2,895

 
2,181

 
247

 
4,004

 
411

 
2014
 
13,401

 
3,020

 
2,300

 
256

 
4,564

 
376

GROOMING
2016
 
6,815

 
2,009

 
1,548

 
451

 
22,819

 
383

 
2015
 
7,441

 
2,374

 
1,787

 
540

 
23,090

 
372

 
2014
 
8,009

 
2,589

 
1,954

 
576

 
23,767

 
369

HEALTH CARE
2016
 
7,350

 
1,812

 
1,250

 
204

 
5,139

 
240

 
2015
 
7,713

 
1,700

 
1,167

 
202

 
5,212

 
218

 
2014
 
7,798

 
1,597

 
1,083

 
199

 
5,879

 
253

FABRIC & HOME CARE
2016
 
20,730

 
4,249

 
2,778

 
531

 
6,919

 
672

 
2015
 
22,274

 
4,059

 
2,634

 
547

 
7,155

 
986

 
2014
 
23,506

 
4,264

 
2,770

 
539

 
7,938

 
1,057

BABY, FEMININE & FAMILY CARE
2016
 
18,505

 
4,042

 
2,650

 
886

 
9,863

 
1,261

 
2015
 
20,247

 
4,317

 
2,938

 
924

 
10,109

 
1,337

 
2014
 
20,950

 
4,310

 
2,940

 
908

 
10,946

 
1,317

CORPORATE (1) (2)
2016
 
422

 
(1,379
)
 
(174
)
 
788

 
78,508

 
323

 
2015
 
466

 
(4,333
)
 
(2,420
)
 
674

 
79,925

 
412

 
2014
 
737

 
(2,271
)
 
(389
)
 
663

 
91,172

 
476

TOTAL COMPANY
2016
 
$
65,299

 
$
13,369

 
$
10,027

 
$
3,078

 
$
127,136

 
$
3,314

 
2015
 
70,749

 
11,012

 
8,287

 
3,134

 
129,495

 
3,736

 
2014
 
74,401

 
13,509

 
10,658

 
3,141

 
144,266

 
3,848


(1) 
Prior year adjustments were made to total assets for the Beauty and Corporate reportable segments related to certain Beauty Brands trademarks included in the scope of the Beauty Brands transaction.
(2) 
The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Pet Care and Batteries businesses prior to their divestiture and of the Beauty Brands businesses.