In: Finance
Many publicly listed companies include some segment information in their annual report. Usually this information can found in their forms 10-K under Item 6: Selected Financial Data and Item 7: Management's Discussion and Analysis. Please pick any company of your choice, find their most recent form 10-K on the internet and summarize the type of segment data they publish. Also provide us with the most important findings you discovered when reading the segment information of your company.
The company that I have selected is P&G (Proctor and Gamble). The latest 10-k that is available for this company is for the financial year 2019.
The company has five reportable segments and I have shown the product categories and sub-categories as well as the major brands for each reportable segment of P&G as shown in its 2019 10-k:
Reportable Segments | Product categories | Major brands |
Beauty | Hair care, skin and personal care | Head & Shoulders, Olay, Old Spice etc |
Grooming | Shave care and applicances | Gillette, Venus, Braun |
Health Care | Oral care, Personal health care | Oral B, Crest, Vicks etc |
Fabric and Home Care | Fabric care, Home care | Ariel, Dawn, Swiffer etc |
Baby, Feminine and Family Care | Baby care, Feminine care, Family care | Pampers, Tampax, Bounty etc |
The most important finding that I discovered when reading the segment information pf P&G was that it the Fabric and Home Care segment that is the largest segment of the company followed by Baby, Feminine and Family Care. For 2019 the Fabric and Home Care segment represented 33% of the company’s total net sales and this was followed by the Baby, Feminine and Family Care segment which represented 27% of the company’s total net sales. The maximum number of brands, though, is in the Beauty segment – more than 40 brands – but still this segment is only 19% of the company’s total net sales.