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12 The Procter & Gamble Company
ORGANIZATIONAL STRUCTURE
Our organizational structure is comprised of Global Business Units (GBUs), Selling and Market Operations (SMOs), Global
Business Services (GBS) and Corporate Functions (CF).
Global Business Units
Our GBUs are organized into ten product categories. Under U.S. GAAP, the GBUs underlying the ten product categories are
aggregated into five reportable segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine &
Family Care. The GBUs are responsible for developing overall brand strategy, new product upgrades and innovations and
marketing plans. The following provides additional detail on our reportable segments and the ten product categories and brand
composition within each segment.
Reportable Segments
% of
Net Sales
1
% of Net
Earnings
1
Product Categories (Sub-Categories) Major Brands
Beauty 18% 20%
Hair Care (Conditioner, Shampoo, Styling Aids,
Treatments)
Head & Shoulders,
Pantene, Rejoice
Skin and Personal Care (Antiperspirant and
Deodorant, Personal Cleansing, Skin Care)
Olay, Old Spice,
Safeguard, SK-II
Grooming 11% 15%
Grooming
2
(Shave Care - Female Blades & Razors,
Male Blades & Razors, Pre- and Post-Shave
Products, Other Shave Care; Appliances)
Braun, Fusion, Gillette,
Mach3, Prestobarba,
Venus
Health Care 11% 12%
Oral Care (Toothbrushes, Toothpaste, Other Oral
Care)Crest, Oral-B
Personal Health Care (Gastrointestinal, Rapid
Diagnostics, Respiratory, Vitamins/Minerals/
Supplements, Other Personal Health Care)
Prilosec, Vicks
Fabric & Home Care 32% 27%
Fabric Care (Fabric Enhancers, Laundry Additives,
Laundry Detergents)Ariel, Downy, Gain, Tide
Home Care (Air Care, Dish Care, P&G
Professional, Surface Care)
Cascade, Dawn, Febreze,
Mr. Clean, Swiffer
Baby, Feminine &
Family Care 28% 26%
Baby Care (Baby Wipes, Diapers and Pants) Luvs, Pampers
Feminine Care (Adult Incontinence, Feminine Care)Always,Tampax
Family Care (Paper Towels, Tissues, Toilet Paper) Bounty, Charmin
(1)
Percent of Net sales and Net earnings from continuing operations for the year ended June 30, 2016 (excluding results held in Corporate).
(2)
The Grooming product category is comprised of the Shave Care and Appliances GBUs.
Recent Developments: As of June 30, 2015, the Company
deconsolidated our Venezuelan subsidiaries and began
accounting for our investment in those subsidiaries using the
cost method of accounting. This change resulted in a fiscal
2015 one-time after-tax charge of $2.1 billion ($0.71 per share).
Beginning in fiscal 2016, our financial results only include
sales of finished goods to our Venezuelan subsidiaries to the
extent we receive cash payments from Venezuela (expected to
be largely through the DIPRO and DICOM exchange market).
Accordingly, we no longer include the results of our
Venezuelan subsidiaries' operations in reporting periods
following fiscal 2015 (see Note 1 to the Consolidated Financial
Statements and additional discussion in the MD&A under
"Venezuela Impacts" in Results of Operations).
InAugust 2014, the Company announced a plan to significantly
streamline our product portfolio by divesting, discontinuing or
consolidating about 100 non-strategic brands. The resulting
portfolio of about 65 key brands are in 10 category-based
businesses where P&G has leading market positions, strong
brands and consumer-meaningful product technologies.
During fiscal 2016, the company completed the divestiture of
its Batteries business. The Batteries business had historically
been part of the Company’s Fabric & Home Care reportable
segment. The results of the Batteries business are presented
as discontinued operations and, as such, are excluded from both
continuing operations and segment results for all periods
presented. Additionally, the Batteries balance sheet positions
as of June 30, 2015 are presented as held for sale in the
Consolidated Balance Sheets.
On July 9, 2015, the Company announced the signing of a
definitive agreement to divest four product categories, to Coty
Inc. ("Coty"). Coty's offer was $12.5 billion. The divestiture
was initially comprised of 43 of the Company's beauty brands
("Beauty Brands"), including the global salon professional hair
care and color, retail hair color, cosmetics and fine fragrance
businesses, along with select hair styling brands. Subsequent
to signing, two of the fine fragrance brands, Dolce Gabbana
and Christina Aguilera, were excluded from the divestiture.
While the ultimate form of the transaction has not yet been
decided, the Company’s current preference is for a Reverse