Selling, General and Administrative  Advertising and Promotion  Segment Results $20.5 or 7% as higher gross margin was partially offset by increased advertising and promotion of $27.6, primarily related  to the  Energizer e 2 launch, as well as higher marketing and  distribution expenses.  Selling, general and administrative expenses decreased $19.3  or 5% in 2000 on lower general corporate expenses, as discussed below, and decreases in Europe were partially offset by increases  in North American marketing and distribution costs. In 1999,  selling, general and administrative expenses were flat with 1998  as decreases in Europe and South and Central America were  offset by higher general corporate expenses. Selling, general and administrative expenses were 19.7%, 21.2% and 20.7% of sales  in 2000, 1999 and 1998, respectively. Advertising and promotion increased $23.1 or 14% in 2000 reflect- ing higher spending in North America, partially offset by a decrease in Europe. In 1999, advertising and promotion decreased $19.3 or 11% with declines in all regions. Advertising and promotion as a percent of sales was 9.8%, 8.8% and 9.6% in 2000, 1999 and 1998, respectively. Energizer’s operations are managed via four major geographic  areas – North America (including the United States and Canada), Asia Pacific, Europe and South and Central America (including Mexico). This structure is the basis for Energizer’s reportable operat- ing segment information presented in Note 21 to the Consolidated Financial Statements. Energizer evaluates segment profitability based on operating profit before general corporate expenses, research and development expenses, restructuring charges and amortization of goodwill and intangibles. Intersegment sales are generally valued  at market-based prices and represent the difference between total sales and external sales as presented in Note 21 to the Consolidated Financial Statements. Segment profitability includes profit on these intersegment sales. North America Net sales increased $86.1 or 8% in 2000 on  higher volume, partially offset by unfavorable pricing and product mix. Alkaline unit volume increased 11% over 1999. Strong Y2K- driven demand early in the fiscal year and incremental  Energizer e 2 sales in the last four months of the year account for the increased volume. Gross margin increased $53.7 with volume contributing $45.8. In addition, favorable production costs were partially offset  by unfavorable pricing and product mix. Segment profit increased Net sales increased $30.5 or 3% in 1999. Volume contributed  $55.2 of the sales increase, partially offset by unfavorable pricing and product mix. Alkaline volume increased 8% in 1999. Segment profit for North America increased $11.6 or 4% in 1999 as a result of the higher gross margin associated with the increase in sales. Increased marketing and distribution costs of $5.0 and increased general and administrative expenses of $4.4 were largely offset by an $8.4 decrease in advertising and promotion expenditures.  Asia Pacific Net sales to customers increased $8.4 or 2% in 2000. Excluding currency devaluations of $4.3, net sales increased $12.7 or 3%. Alkaline volume increases of 8% were partially offset by a 2% decline in carbon zinc volume. Segment profit for Asia Pacific increased $22.7 or 25%, in 2000. Gross margin increased $23.3 due to lower production costs, higher customer sales and higher intersegment sales. Lower production costs reflect a variety  of factors including higher production facility utilization and lower costs resulting from a plant closing in 1999. Selling, general and administrative expenses were up 1% compared to 1999. Net sales decreased $12.1 or 3% in 1999. Currency devaluations accounted for $12.0 of the sales decline. Carbon zinc volume decreases of 5% were offset by a 4% increase in alkaline volume. Segment profit for Asia Pacific decreased $11.1 or 11% in 1999. Gross margin declined $21.3 due to higher production costs  and lower sales. Partially offsetting these declines were a $6.2 decrease in exchange losses and a $4.0 decrease in advertising  and promotion. Europe Net sales to customers for Europe decreased $44.3 or 14% in 2000 reflecting currency devaluation of $28.2, lower carbon zinc volume of $11.8 and unfavorable pricing and product mix of $6.9, partially offset by a 1% alkaline volume gain. For the year, carbon zinc unit volume declined 14%. Gross margin decreased $21.0,  primarily on unfavorable currency impacts of $18.3. The remaining decline reflects lower sales, partially offset by lower production costs  associated with increased efficiencies following a plant closing in ENERGIZER 2000 ANNUAL REPOR T 12