Kenvue Inc.KVUE
Kenvue Inc. Segments Disclosure
Segments of Business and Geographic Areas
The Company is organized into three reportable business segments: Self Care, Skin Health and Beauty, and Essential Health.
The Company’s Chief Operating Decision Maker (the “CODM”), the Chief Executive Officer, uses Segment adjusted operating income as the measure of profit or loss and to evaluate the performance of the Company’s segments. For each segment, the CODM uses this information to assist in evaluating underlying trends, to monitor budget and forecast versus actual results, to make investment decisions to allocate resources both in total, and between the segments, and to make key segment personnel decisions. Segment profit is based on Operating income, excluding depreciation, amortization of intangible assets, Separation-related costs, restructuring expenses and operating model optimization initiatives, impairment charges, the impact of the conversion of stock-based awards, issuance of Founder Shares, Proposed Transaction costs (as defined below), Other operating (income) expense, net, and unallocated general corporate administrative expenses (referred to herein as “Segment adjusted
operating income”), as the CODM excludes these items in assessing segment financial performance. General corporate/unallocated expenses, which include expenses related to treasury, legal operations, and certain other expenses, along with gains and losses related to the overall management of the Company, are not allocated to the segments. In assessing segment performance and managing operations, the CODM does not review segment assets.
The Company operates the business through the following three reportable business segments based on product categories:
| Reportable Segments | Product Categories | ||||
| Self Care | Cough, Cold, and Allergy | ||||
Pain Care | |||||
Other Self Care (Digestive Health, Smoking Cessation, Eye Care, and Other) | |||||
| Skin Health and Beauty | Face and Body Care | ||||
Hair, Sun, and Other | |||||
| Essential Health | Oral Care | ||||
| Baby Care | |||||
Other Essential Health (Women’s Health, Wound Care, and Other) | |||||
The Company’s product categories as a percentage of Net sales for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 were as follows:
| Fiscal Twelve Months Ended | ||||||||||||||||||||
| Product Categories | December 28, 2025 | December 29, 2024 | December 31, 2023 | |||||||||||||||||
| Cough, Cold, and Allergy | 13 | % | 14 | % | 13 | % | ||||||||||||||
| Pain Care | 13 | 13 | 14 | |||||||||||||||||
| Other Self Care | 16 | 15 | 15 | |||||||||||||||||
| Face and Body Care | 19 | 19 | 20 | |||||||||||||||||
| Hair, Sun, and Other | 8 | 8 | 9 | |||||||||||||||||
| Oral Care | 11 | 11 | 10 | |||||||||||||||||
| Baby Care | 9 | 9 | 9 | |||||||||||||||||
| Other Essential Health | 11 | 11 | 10 | |||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | ||||||||||||||
Segment Net Sales and Segment Adjusted Operating Income
Segment net sales and Segment adjusted operating income for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 were as follows:
| Fiscal Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 28, 2025 | December 29, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Self Care | Skin Health and Beauty | Essential Health | Total | Self Care | Skin Health and Beauty | Essential Health | Total | Self Care | Skin Health and Beauty | Essential Health | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 6,378 | $ | 4,114 | $ | 4,632 | $ | 15,124 | $ | 6,527 | $ | 4,240 | $ | 4,688 | $ | 15,455 | $ | 6,451 | $ | 4,378 | $ | 4,615 | $ | 15,444 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Segment adjusted Cost of sales(1) | 2,285 | 1,671 | 2,056 | 6,012 | 2,287 | 1,738 | 2,102 | 6,127 | 2,249 | 1,952 | 2,228 | 6,429 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other segment expense items(2) | 1,984 | 1,966 | 1,400 | 5,350 | 2,067 | 1,895 | 1,424 | 5,386 | 1,903 | 1,747 | 1,376 | 5,026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment adjusted operating income | $ | 2,109 | $ | 477 | $ | 1,176 | $ | 3,762 | $ | 2,173 | $ | 607 | $ | 1,162 | $ | 3,942 | $ | 2,299 | $ | 679 | $ | 1,011 | $ | 3,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation to Income before taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation(3) | 300 | 329 | 305 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets(4) | 257 | 269 | 322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Separation-related costs(5) | 88 | 296 | 468 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expenses and operating model optimization initiatives(6) | 335 | 221 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges(7) | 23 | 578 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of stock-based awards(8) | 7 | 39 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Founder Shares(9) | 7 | 29 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proposed Transaction costs(10) | 25 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating (income) expense, net | (23) | 26 | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General corporate/unallocated expenses | 329 | 314 | 296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating income | $ | 2,414 | $ | 1,841 | $ | 2,512 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense, net | 36 | 48 | 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 379 | 378 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before taxes | $ | 1,999 | $ | 1,415 | $ | 2,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) The Company defines Segment adjusted cost of sales as Cost of sales adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, operating model optimization initiatives, and general corporate/unallocated expenses.
(2) Other segment expense items for each reportable business segment include brand support, employee-related costs, shipping and handling costs, research and development costs, and certain other operating expenses (income).
(3) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements.
(4) Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives.
(5) Separation-related costs includes depreciation expense on Separation-related assets for the fiscal twelve months ended December 29, 2024. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Separation-Related Costs,” for additional information regarding Separation-related costs.
(6) Restructuring expenses and operating model optimization initiatives relate to the 2024 Multi-Year Restructuring Initiative in the fiscal twelve months ended December 29, 2024 and December 28, 2025 (as defined in Note 19, “Restructuring Expenses and Operating Model Optimization Initiatives”). See Note 19, “Restructuring Expenses and Operating Model Optimization Initiatives,” for additional information.
(7) Impairment charges for the fiscal twelve months ended December 28, 2025 includes $23 million recognized in connection with the ORSL® trade name following regulatory changes in India. Impairment charges for the fiscal twelve months ended December 29, 2024 includes $488 million recognized in relation to Dr.Ci:Labo® long-lived assets, $68 million recognized on the held for sale asset associated with the Company’s former corporate headquarters in Skillman, New Jersey, and $22 million recognized on certain software development assets. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Impairment of Long-Lived Assets,” for additional information.
(8) Segment adjusted operating income excludes the impact of the conversion of stock-based awards that occurred on August 23, 2023 (see Note 11, “Stock-Based Compensation” for additional information). The adjustment represents the net impact of the gain on reversal of previously recognized stock-based compensation expense, offset by stock-based compensation expense recognized in the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 relating to employee services provided prior to the Separation.
(9) On October 2, 2023, the Founder Shares were granted to all Kenvue employees in the form of stock options and PSUs to executive officers and either stock options and PSUs or RSUs to non-executive individuals.
(10) Proposed Transaction costs primarily consist of expenses incurred in connection with the Proposed Transaction, including advisory fees, legal costs, and other professional service costs (the “Proposed Transaction costs”).
Depreciation and Amortization
Depreciation and amortization by reportable business segment for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 were as follows:
| Fiscal Twelve Months Ended | ||||||||||||||||||||
| (Dollars in Millions) | December 28, 2025 | December 29, 2024 | December 31, 2023 | |||||||||||||||||
| Self Care | $ | 204 | $ | 217 | $ | 202 | ||||||||||||||
| Skin Health and Beauty | 123 | 174 | 230 | |||||||||||||||||
| Essential Health | 230 | 231 | 195 | |||||||||||||||||
Total depreciation and amortization(1) | $ | 557 | $ | 622 | $ | 627 | ||||||||||||||
(1) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements. Amortization relates to the amortization of intangible assets.
Geographic Information
Net sales are attributed to a geographic region based on the location of the customer and for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 were as follows:
| Fiscal Twelve Months Ended | ||||||||||||||||||||
| (Dollars in Millions) | December 28, 2025 | December 29, 2024 | December 31, 2023 | |||||||||||||||||
North America(1) | $ | 7,259 | $ | 7,579 | $ | 7,610 | ||||||||||||||
| Europe, Middle East, and Africa | 3,721 | 3,559 | 3,388 | |||||||||||||||||
| Asia-Pacific | 2,775 | 2,974 | 3,107 | |||||||||||||||||
| Latin America | 1,369 | 1,343 | 1,339 | |||||||||||||||||
| Total Net sales | $ | 15,124 | $ | 15,455 | $ | 15,444 | ||||||||||||||
(1) Includes U.S. Net sales in the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 of $6,460 million, $6,719 million, and $6,767 million, respectively.
Long-lived assets consisting of property, plant, and equipment, net of accumulated depreciation as of December 28, 2025 and December 29, 2024 were as follows:
| (Dollars in Millions) | December 28, 2025 | December 29, 2024 | ||||||||||||
North America(1) | $ | 1,156 | $ | 922 | ||||||||||
| Europe, Middle East, and Africa | 536 | 432 | ||||||||||||
| Asia-Pacific | 308 | 297 | ||||||||||||
| Latin America | 212 | 198 | ||||||||||||
Total long-lived assets | $ | 2,212 | $ | 1,849 | ||||||||||
(1) Includes U.S. long-lived assets as of December 28, 2025 and December 29, 2024 of $1,078 million and $848 million, respectively.
Major Customers
One of the Company’s customers accounted for approximately 12% of total Net sales in each of the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Mar 1, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.