Proctor and Gamble 2015 Annual Report Download - page 25

23 The Procter & Gamble Company
ORGANIATIONAL STRUCTURE
Our organizational structure is comprised of Global usiness Units (GUs), Selling and Market Operations (SMOs), Global
usiness Services (GS) and Corporate Functions (CF).
Gloal Business Units
Our Global usiness Units (GUs) are organized into four industry-based sectors, comprised of 1) Global eauty, 2) Global
Health and Grooming, 3) Global Fabric and Home Care and 4) Global aby, Feminine and Family Care. Under U.S. GAAP, the
GUs underlying the four sectors are aggregated into five reportable segments: eauty, Hair and Personal Care Grooming Health
Care Fabric Care and Home Care and aby, Feminine and Family Care. The GUs 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 key product categories and brand composition within each segment.
Reortale Segment
 of
Net Sales
 of Net
Earnings GBUs Categories Billion Dollar Brands
eauty, Hair and Personal
Care 24 23
Skin and Personal Care (Antiperspirant and
Deodorant, Personal Cleansing, Skin Care)
Cosmetics Hair Care and Color Prestige Salon
Professional
Head & Shoulders,
Olay, Pantene, SK-II,
ella
Grooming 10 16
Shave Care (Female lades & Razors, Male lades &
Razors, Pre- and Post-Shave Products, Other Shave
Care) Electronic Hair Removal
Fusion, Gillette,
Mach3, Prestobarba
Health Care 10 11
Personal Health Care (Gastrointestinal, Rapid
Diagnostics, Respiratory, itaminsMinerals
Supplements, Other Personal Health Care) Oral Care
(Toothbrush, Toothpaste, Other Oral Care)
Crest, Oral-, icks
Fabric Care and Home Care 29 24
Fabric Care (Laundry Additives, Fabric Enhancers,
Laundry Detergents) Home Care (Air Care, Dish
Care, P&G Professional, Surface Care)
Ariel, Dawn, Downy,
Febreze, Gain, Tide
aby, Feminine and Family
Care 27 26
aby Care (aby ipes, Diapers and Pants)
Feminine Care (Adult Incontinence, Feminine Care)
Family Care (Paper Towels, Tissues, Toilet Paper)
Always, ounty,
Charmin, Pampers
 Percent of net sales and net earnings from continuing operations for the year ended June 30, 2015 (excluding results held in Corporate).
Recent Developments: As of June 30, 2015, the Company
deconsolidated our enezuelan subsidiaries and began
accounting for our investment in those subsidiaries using the
cost method of accounting. This change resulted in a fourth
quarter fiscal 2015 one-time after-tax charge of $2.1 billion
($0.71 per share). In future periods, our financial results will
only include sales of finished goods to our enezuela
subsidiaries to the extent we receive cash payments from
enezuela (expected to be largely through the CENCOEX
exchange market). Accordingly, we will no longer include the
results of our local enezuelan subsidiaries' operations in
future reporting periods (see Note 1 to the Consolidated
Financial Statements and additional discussion in this MD&A
under enezuela 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 will retain about 85 of sales
and 95 of before-tax profit.
On July 9, 2015, the Company announced the signing of a
definitive agreement with Coty, Inc. to divest four product
categories, including 43 of its beauty brands to Coty Inc. Coty's
offer was $12.5 billion. hile the final value of the transaction
will be determined at closing, based on Coty's stock price and
outstanding shares and equity grants as of the date of signing,
the value of the transaction was approximately $15.0 billion.
hile the ultimate form of the transaction has not yet been
decided, the Companys current preference is for a Reverse
Morris Trust split-off transaction in which P&G shareholders
could elect to participate in an exchange offer to exchange P&G
shares for Coty shares.
The transaction includes P&Gs global salon professional hair
care and color, retail hair color, cosmetics and fine fragrance
categories, along with select hair styling brands, all of which
have historically been part of the Company's eauty, Hair and
Personal Care reportable segment and had net sales of $5.5
billion in fiscal year 2015. The Company expects to complete
this beauty transaction by the end of calendar year 2016. For
the period ended June 30, 2015, the results of the affected
beauty categories and brands remain part of our continuing
operations. eginning with fiscal year 2015-16 reported
results, the earnings, assets and liabilities from the affected
beauty businesses will be reported as discontinued operations.
On November 13, 2014, the Company announced that it plans
to divest the atteries business via a split transaction with
erkshire Hathaway valued at $2.9 billion, in which it will
exchange a recapitalized Duracell Company for erkshire
Hathaways shares of Procter & Gamble stock. The Company
had previously sold its controlling interest in a China-based
batteries joint venture, which represented the balance of the