Proctor and Gamble 2012 Annual Report Download - page 74
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Please find page 74 of the 2012 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.72 The Procter & Gamble Company
Amounts in millions of dollars except per share amounts or as otherwise specified.
As previously disclosed, the Company has had a number of
antitrust matters in Europe. These matters involve a number
of other consumer products companies and/or retail
customers. The Company's policy is to comply with all laws
and regulations, including all antitrust and competition laws,
and to cooperate with investigations by relevant regulatory
authorities, which the Company is doing. Competition and
antitrust law inquiries often continue for several years and, if
violations are found, can result in substantial fines.
In response to the actions of the regulatory authorities, the
Company launched its own internal investigations into
potential violations of competition laws. The Company
identified violations in certain European countries and
appropriate actions were taken.
Several regulatory authorities in Europe have issued separate
decisions pursuant to their investigations alleging that the
Company, along with several other companies, engaged in
violations of competition laws in those countries. The
Company has accrued the assessed fines for each of the
decisions, of which all but $15 has been paid as of June 30,
2012. Most of those are on appeal. As a result of our initial
and on-going analyses of other formal complaints, the
Company has accrued liabilities for competition law
violations totaling $18 as of June 30, 2012. While the
ultimate resolution of these matters for which we have
accrued liabilities may result in fines or costs in excess of
the amounts reserved, we do not expect any such
incremental losses to materially impact our financial
statements in the period in which they are accrued and paid,
respectively. The remaining authorities' investigations are in
various stages of the regulatory process. For these other
remaining competition law matters, we cannot reasonably
estimate any additional fines to which the Company may be
subject as a result of the investigations. We will continue to
monitor developments for all of these investigations and will
record additional charges as appropriate.
With respect to other litigation and claims, while
considerable uncertainty exists, in the opinion of
management and our counsel, the ultimate resolution of the
various lawsuits and claims will not materially affect our
financial position, results of operations or cash flows.
We are also subject to contingencies pursuant to
environmental laws and regulations that in the future may
require us to take action to correct the effects on the
environment of prior manufacturing and waste disposal
practices. Based on currently available information, we do
not believe the ultimate resolution of environmental
remediation will have a material effect on our financial
position, results of operations or cash flows.
NOTE 11
SEGMENT INFORMATION
Effective during the quarter ended December 31, 2011, we
implemented a number of changes to our organization
structure for the Beauty & Grooming Global Business Unit
(GBU), which resulted in changes to the components of the
Beauty reportable segment and the Grooming reportable
segment. As a result of these changes, female blades and
razors transitioned from the Beauty segment to the
Grooming segment, while male personal care products such
as Old Spice and Gillette, moved from the Grooming
segment to the Beauty segment. In May 2012, we
completed the divestiture of the snacks business to The
Kellogg Company. As a result of this transaction, the snacks
business, which was previously included in the Snacks and
Pet Care segment, is reported as discontinued operations.
Additionally, as a result of this change, the pet care business
is now included in the Fabric Care and Home Care segment.
The segment information provided below reflects these
changes for all periods presented.
The Company has two GBUs: the Beauty & Grooming GBU
and the Household Care GBU.
Under U.S. GAAP, we have five reportable segments:
•Beauty: Antiperspirant and Deodorant, Cosmetics,
Hair Care, Hair Color, Personal Cleansing, Prestige
Products, Salon Professional and Skin Care;
•Grooming: Blades and Razors, Electronic Hair
Removal Devices, Hair Care Appliances and Pre- and
Post-Shave Products;
•Health Care: Feminine Care, Gastrointestinal,
Incontinence, Rapid Diagnostics, Respiratory,
Toothbrush, Toothpaste, Other Oral Care, Other
Personal Health Care and Vitamins/Minerals/
Supplements;
•Fabric Care and Home Care: Bleach and Laundry
Additives, Air Care, Batteries, Dish Care, Fabric
Enhancers, Laundry Detergents, Pet Care,
Professional and Surface Care;
•Baby Care and Family Care: Baby Wipes, Diapers,
Paper Towels, Tissues and Toilet Paper.
The accounting policies of the businesses 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 businesses using applicable
blended statutory rates, and the treatment of certain
unconsolidated investees. Certain unconsolidated investees
are managed as integral parts of our business units for
management reporting purposes. Accordingly, these partially
owned operations are reflected as consolidated subsidiaries
in segment results, with full recognition of the individual
income statement line items through before-tax earnings.
Eliminations to adjust these line items to U.S. GAAP are