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Segment, Geographic and Other Revenue Information Segment, Geographic and Other Revenue Information (Tables)
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Schedule of Selected Income Statement Information by Segment
Selected Statement of Income Information
 
 
Earnings
 
Depreciation and Amortization(a)
 
 
December 31,

 
December 31,

 
December 31,

 
December 31,

 
December 31,

 
December 31,

(MILLIONS OF DOLLARS)
 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

Year ended
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
2,328

 
$
2,059

 
$
1,902

 
 
 
 
 
 
Cost of Sales
 
551

 
482

 
460

 
 
 
 
 
 
Gross Profit
 
1,777

 
1,577

 
1,442

 
 
 
 
 
 
    Gross Margin
 
76.3
%
 
76.6
%
 
75.8
%
 
 
 
 
 
 
Operating Expenses
 
389

 
401

 
397

 
 
 
 
 
 
Other (income)/deductions
 
(2
)
 
—

 
—

 
 
 
 
 
 
U.S. Earnings
 
1,390

 
1,176

 
1,045

 
$
24

 
$
33

 
$
43

 
 
 
 
 
 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
 
 
 
 
 
Revenue(b)
 
2,386

 
2,676

 
2,606

 
 
 
 
 
 
Cost of Sales
 
873

 
964

 
960

 
 
 
 
 
 
Gross Profit
 
1,513

 
1,712

 
1,646

 
 
 
 
 
 
    Gross Margin
 
63.4
%
 
64.0
%
 
63.2
%
 
 
 
 
 
 
Operating Expenses
 
570

 
685

 
691

 
 
 
 
 
 
Other (income)/deductions
 
2

 
2

 
6

 
 
 
 
 
 
International Earnings
 
941

 
1,025

 
949

 
46

 
50

 
53

 
 
 
 
 
 
 
 
 
 
 
 
 
Total operating segments
 
2,331

 
2,201

 
1,994

 
70

 
83

 
96

 
 
 
 
 
 
 
 
 
 
 
 
 
Other business activities
 
(293
)
 
(318
)
 
(317
)
 
26

 
28

 
28

Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
(606
)
 
(559
)
 
(555
)
 
40

 
31

 
23

Purchase accounting adjustments
 
(57
)
 
(51
)
 
(48
)
 
53

 
51

 
48

Acquisition-related costs
 
(21
)
 
(8
)
 
(22
)
 
—

 
—

 
—

Certain significant items(c)
 
(592
)
 
(205
)
 
(240
)
 
6

 
5

 
5

Other unallocated
 
(217
)
 
(240
)
 
(122
)
 
4

 
6

 
9

Total Earnings(d)
 
$
545

 
$
820

 
$
690

 
$
199

 
$
204

 
$
209

    
(a) 
Certain production facilities are shared. Depreciation and amortization is allocated to the reportable operating segments based on estimates of where the benefits of the related assets are realized.
(b) 
Revenue denominated in euros were $593 million in 2015, $710 million in 2014, and $693 million in 2013.
(c) 
For 2015, certain significant items primarily includes: (i) Zoetis stand up costs of $118 million; (ii) charges related to our operational efficiency initiative and supply network strategy of $373 million, (iii) charges of $93 million of foreign currency losses related to the Venezuela revaluation; (iv) impairment charges of $3 million related to assets held by our joint venture in Taiwan, currently classified as assets held for sale, and an impairment of IPR&D assets related to the termination of a canine oncology project of $2 million; and (v) charges due to unusual investor-related activities of $3 million. Stand-up costs include certain nonrecurring costs related to becoming an independent public company, such as new branding (including changes to the manufacturing process for required new packaging), the creation of standalone systems and infrastructure, site separation, accelerated vesting and associated cash payment related to certain Pfizer equity awards, and certain legal registration and patent assignment costs.
For 2014, certain significant items primarily includes: (i) Zoetis stand-up costs of $168 million; (ii) charges related to a commercial settlement in Mexico of $13 million, partially offset by the insurance recovery of $1 million; (iii) restructuring charges of $12 million related to employee termination costs in Europe and $6 million related to employee termination costs in our global manufacturing operations, partially offset by a $2 million benefit related to the reversal of a previously established reserve as a result of a change in estimate of employee termination costs; (iv) intangible asset impairment charges related to an IPR&D project acquired with the FDAH acquisition in 2009 of $6 million; (v) costs of $5 million due to unusual investor-related activities; (vi) the Zoetis portion of a net gain on the sale of land by our Taiwan joint venture of $3 million income, and the net gain on the government-mandated sale of certain product rights in Argentina that were acquired with the FDAH acquisition in 2009 of $2 million income; (vii) additional depreciation associated with asset restructuring of $1 million; (viii) a pension plan settlement charge related to a divestiture of a manufacturing plant of $4 million; and (ix) an insurance recovery of other litigation related charges of $2 million income.
For 2013, certain significant items includes: (i) Zoetis stand-up costs of $206 million; (ii) $20 million income primarily related to a reversal of certain employee termination expenses, partially offset by restructuring charges related to exiting certain manufacturing and research facilities; (iii) $6 million income on the government-mandated sale of certain product rights in Brazil that were acquired with the FDAH acquisition in 2009; (iv) asset impairment charges associated with asset restructuring of $19 million; (v) additional depreciation associated with asset restructuring of $8 million; (vi) write-offs of inventory and intercompany accounts that were transferred to us as part of the Separation from Pfizer of $24 million; and (vii) litigation-related charges of $5 million.
Long-lived Assets by Geographic Areas
Property, plant and equipment, less accumulated depreciation, by geographic region follow:
 
 
As of December 31,
(MILLIONS OF DOLLARS)
 
2015

 
2014

U.S.
 
$
916

 
$
867

International
 
391

 
451

Property, plant and equipment, less accumulated depreciation
 
$
1,307

 
$
1,318
Schedule of Significant Product Revenues
Revenue by Species
Significant species revenue is as follows:
 
 
Year Ended December 31,
(MILLIONS OF DOLLARS)
 
2015

 
2014

 
2013

Livestock:
 
 
 
 
 
 
Cattle
 
$
1,680

 
$
1,747

 
$
1,628

Swine
 
668

 
695

 
652

Poultry
 
525

 
568

 
551

Other
 
85

 
93

 
85

 
 
2,958

 
3,103

 
2,916

Companion Animal:
 
 
 
 
 
 
Horses
 
162

 
182

 
179

Dogs and Cats
 
1,594

 
1,450

 
1,413

 
 
1,756

 
1,632

 
1,592

 
 
 
 
 
 
 
Contract Manufacturing
 
51

 
50

 
53

 
 
 
 
 
 
 
Total revenue
 
$
4,765

 
$
4,785

 
$
4,561

Revenue by Major Product Category
Significant revenue by major product category is as follows:
 
 
Year Ended December 31,
(MILLIONS OF DOLLARS)
 
2015

 
2014

 
2013

Anti-infectives
 
$
1,305

 
$
1,398

 
$
1,295

Vaccines
 
1,149

 
1,212

 
1,189

Parasiticides
 
651

 
708

 
691

Medicated feed additives
 
505

 
479

 
446

Other pharmaceuticals
 
910

 
783

 
739

Other non-pharmaceuticals
 
194

 
155

 
148

Contract manufacturing
 
51

 
50

 
53

Total revenue
 
$
4,765

 
$
4,785

 
$
4,561