Note 15. Operating Segments

The company’s operating segments have generally similar products and services and the company is organized to manage its operations geographically. The company’s operating segments have been aggregated into three reportable segments.

The “United States Cleaning & Sanitizing” segment provides cleaning and sanitizing products and services to United States markets through its Institutional, Kay, Textile Care, Professional Products, Vehicle Care, Water Care Services and Food & Beverage operations.

The “United States Other Services” segment includes all other U.S. operations of the company. This segment provides pest elimination, kitchen equipment repair and maintenance, and commercial dishwashing services through its Pest Elimination, GCS and Jackson operations, prior to the sale of Jackson in November 2000.

The company’s “International Cleaning & Sanitizing” segment provides cleaning and sanitizing product and service offerings to international markets in Asia Pacific, Latin America, Africa, Canada and through its Export operations. Effective November 30, 2001, Henkel-Ecolab’s total assets (Europe) have also been included in the company’s International Cleaning & Sanitizing operations. European operating data will be included beginning in 2002.

Information on the types of services and products of each of the company’s operating segments is included on the inside front cover, under “Services/Products” of the Ecolab Overview section of this Annual Report.

The company evaluates the performance of its international operations based on fixed management currency exchange rates. All other accounting policies of the reportable segments are consistent with accounting principles generally accepted in the United States of America and the accounting policies of the company described in Note 2 of the notes to consolidated financial statements. The profitability of the company's operating segments is evaluated by management based on operating income. Intersegment sales and transfers were not significant. Financial information for each of the company's reportable segments is as follows: (thousands) United States Other   Cleaning & Sanitizing Other Services Total United States International Cleaning & Sanitizing Foreign Currency Translation Corporate Consolidated Net sales     2001 $1,582,895 $273,020 $1,855,915 $ 521,959 $(23,151)   $2,354,723     2000 1,532,033 248,317 1,780,350 465,452 18,511   2,264,313     1999 1,424,037 211,562 1,635,599 420,799 23,614   2,080,012 Operating income     2001 246,936 29,338 276,274 49,770 (2,927) $ (4,938) 318,179     2000 249,182 25,515 274,697 47,240 2,711 18,491 343,139     1999 230,520 25,114 255,634 36,396 2,491 (4,570) 289,951 Depreciation & amortization     2001 118,298 5,384 123,682 32,061 1,308 5,939 162,990     2000 107,537 5,124 112,661 24,843 4,470 6,462 148,436     1999 96,346 4,442 100,788 24,234 3,195 6,313 134,530 Total assets       2001 983,109 128,338 1,111,447 1,355,813 (16,616) 74,356 2,525,000     2000 953,534 103,182 1,056,716 377,201 13,126 266,968 1,714,011     1999 831,494 85,617 917,111 321,551 36,772 310,512 1,585,946 Capital expenditures     2001 114,427 6,911 121,338 37,805 (1,906) 700 157,937     2000 116,666 3,381 120,047 27,710 1,438 814 150,009     1999 $ 109,889 $ 4,182 $ 114,071 $ 25,216 $ 5,690 $ 645 $ 145,622   Corporate operating income generally includes only overhead costs directly related to Henkel-Ecolab. However, consistent with the company's internal management reporting, for 2000 the gain on sale of the Jackson business ($25.9 million), special charges ($7.1 million) and income related to net reductions in probable losses related to certain environmental matters ($4.4 million) have been included in the corporate operating income segment. Corporate depreciation and amortization is principally amortization of deferred compensation related to stock awards. Corporate assets are principally cash and cash equivalents and the company's investment in Henkel-Ecolab, prior to November 30, 2001.   The company has two classes of products and services within its United States and International Cleaning & Sanitizing operations which comprise 10 percent or more of consolidated net sales. Worldwide sales of warewashing products were approximately 25 percent, 26 percent and 27 percent of consolidated net sales in 2001, 2000 and 1999, respectively. Sales of laundry products and services on a worldwide basis were approximately 11 percent, 11 percent and 12 percent of consolidated net sales in 2001, 2000 and 1999, respectively.   Long-lived assets of the company's United States and International operations were as follows: December 31 (thousands) 2001 2000 1999 United States $424,478 $401,671 $360,541 International 221,966 86,727 79,173 Corporate 4,429 4,715 2,047 Effect of foreign currency translation (6,550) 8,527 6,355         Consolidated $644,323 $501,640 $448,116