v3.25.2
SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
Under U.S. GAAP, our operating segments 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 (Conditioners, Shampoos, Styling Aids, Treatments); Personal Care (Antiperspirants and Deodorants, Personal Cleansing); Skin Care (Facial Moisturizers, Cleaners and Treatments);
•Grooming: Grooming (Appliances, Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Grooming);
•Health Care: Oral Care (Toothbrushes, Toothpastes, Other Oral Care); Personal Health Care (Gastrointestinal, Pain Relief, 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, Taped Diapers and Pants); Feminine Care (Adult Incontinence, Menstrual Care); Family Care (Paper Towels, Tissues, Toilet Paper).
While none of our reportable segments are highly seasonal, components within certain reportable segments, such as Appliances (Grooming) and Personal Health Care (Health), are seasonal.
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. In addition, capital expenditures in the segments are on an accrual basis consistent with the balance sheet. Adjustments to move from an accrual to cash basis, for purposes of the cash flow statement, are reflected 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, asset impairment charges and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain pension and other postretirement benefit costs, certain acquisition and divestiture gains, interest and investing income and other financing costs.
The Company’s Chief Operating Decision Maker (CODM) is the Chief Executive Officer. As the Company allocates taxes to individual segments, the CODM uses Earnings before income taxes and Net earnings to assess segment performance and allocate resources in the budgeting and forecasting process. The CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.
Our operating segments are comprised of similar product categories. Operating segments as a percentage of consolidated net sales (excluding sales recorded in Corporate) are as follows:
Fiscal years ended June 30202520242023
Fabric Care23%24%23%
Home Care13%12%12%
Baby Care9%9%10%
Family Care9%9%8%
Hair Care9%9%9%
Grooming8%8%8%
Oral Care8%8%8%
Feminine Care6%6%7%
Personal Care (1)
6%5%5%
Personal Health Care6%6%6%
Skin Care (1)
3%4%4%
TOTAL100%100%100%
(1)Effective July 1, 2024, the Beauty reportable business segment separated Skin and Personal Care into individual operating segments, Skin Care and Personal Care. This transition included separation of the management team, strategic decision-making, innovation plans, financial targets, budgets and management reporting.
Net sales and long-lived assets in the United States and internationally were as follows (in billions):
Fiscal years ended June 30202520242023
NET SALES
United States$41.6 $40.5 $38.7 
International$42.7 $43.5 $43.3 
LONG-LIVED ASSETS (1)
United States$12.6 $12.0 $11.4 
International$11.3 $10.2 $10.5 
(1)Long-lived assets consists of property, plant and equipment.
No country, other than the United States, exceeds 10% of the Company's consolidated net sales or long-lived assets.
Our largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 16% in 2025 and 2024 and 15% in 2023. No other customer represents more than 10% of our consolidated net sales.
Fiscal Year Ended June 30, 2025
BeautyGroomingHealth CareFabric & Home CareBaby, Feminine & Family CareCorporateTotal Company
Net sales$14,964 $6,662 $11,998 $29,617 $20,248 $794 $84,284 
Cost of products sold(5,822)(2,675)(4,974)(15,650)(10,926)(1,118)(41,164)
Selling, general and administrative expense(5,687)(2,036)(3,886)(6,509)(4,108)(443)(22,669)
Other segment items (1)
(1)— 10 1 — (294)(284)
Earnings/(Loss) before income taxes3,454 1,952 3,149 7,459 5,214 (1,061)20,167 
Net earnings/(loss)$2,715 $1,577 $2,440 $5,848 $4,013 $(527)$16,065 
Other segment information
Depreciation and amortization$399 $313 $397 $723 $814 $200 $2,847 
Capital expenditures$328 $451 $526 $1,208 $1,080 $180 $3,773 
(1)Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). Corporate includes non-operating losses comprised primarily of a non-cash charge of $752 for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina. See Note 3 for more information on the limited market portfolio restructuring program.
Fiscal Year Ended June 30, 2024
BeautyGroomingHealth CareFabric & Home CareBaby, Feminine & Family CareCorporateTotal Company
Net sales$15,220 $6,654 $11,793 $29,495 $20,277 $601 $84,039 
Cost of products sold(5,722)(2,711)(4,967)(15,535)(10,831)(1,082)(40,848)
Selling, general and administrative expense(5,700)(2,105)(3,886)(6,631)(4,198)(784)(23,305)
Other segment items (1)
8 7 1 10 6 (1,156)(1,125)
Earnings/(Loss) before income taxes3,805 1,845 2,941 7,339 5,253 (2,422)18,761 
Net earnings/(loss)$2,963 $1,477 $2,258 $5,687 $4,020 $(1,430)$14,974 
Other segment information
Depreciation and amortization$399 $335 $381 $710 $824 $247 $2,896 
Capital expenditures$280 $337 $524 $1,076 $979 $126 $3,322 
(1)Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). The non-cash impairment charge of $1.3 billion on the Gillette intangible asset was included in Other segment items within Corporate and is discussed further in Note 4.
Fiscal Year Ended June 30, 2023
BeautyGroomingHealth CareFabric & Home CareBaby, Feminine & Family CareCorporateTotal Company
Net sales$15,008 $6,419 $11,226 $28,371 $20,217 $765 $82,006 
Cost of products sold(5,849)(2,698)(4,855)(16,342)(11,857)(1,159)(42,760)
Selling, general and administrative expense(5,157)(1,925)(3,615)(5,772)(3,749)(894)(21,112)
Other segment items (1)
7 10 4 45 12 141 219 
Earnings/(Loss) before income taxes4,009 1,806 2,759 6,303 4,623 (1,147)18,353 
Net earnings/(loss)$3,178 $1,461 $2,125 $4,828 $3,545 $(399)$14,738 
Other segment information
Depreciation and amortization$376 $335 $352 $675 $804 $172 $2,714 
Capital expenditures$287 $300 $466 $979 $994 $36 $3,062 
(1)Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense).