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Segment Information - Income Statement (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]                      
Revenues $ 1,674 $ 1,584 $ 1,547 $ 1,455 $ 1,564 $ 1,480 $ 1,415 $ 1,366 $ 6,260 $ 5,825 $ 5,307
Cost of Sales [1]                 1,992 1,911 1,775
Other (income)/deductions                 (57) (83) 6
Earnings 437 $ 528 $ 455 $ 381 418 $ 418 $ 437 $ 417 1,801 [2] 1,690 [2] 1,525 [2]
Depreciation and Amortization [2],[3]                 412 308 242
Acquisition-related costs, earnings                 43    
Property, plant and equipment, less accumulated depreciation 1,940       1,658       1,940 1,658  
United States                      
Segment Reporting Information [Line Items]                      
Property, plant and equipment, less accumulated depreciation 1,342       1,188       1,342 1,188  
International Segment                      
Segment Reporting Information [Line Items]                      
Property, plant and equipment, less accumulated depreciation $ 598       $ 470       598 470  
Other business activities                      
Segment Reporting Information [Line Items]                      
Earnings                 (348) (337) (313)
Depreciation and Amortization [3]                 24 23 23
Corporate                      
Segment Reporting Information [Line Items]                      
Depreciation and Amortization [3]                 69    
Acquisition-related costs                      
Segment Reporting Information [Line Items]                      
Depreciation and Amortization [3]                 0 0 0
United States                      
Segment Reporting Information [Line Items]                      
Revenues                 3,203 2,877 2,620
Operating Segments                      
Segment Reporting Information [Line Items]                      
Earnings                 3,492 3,214 2,877
Depreciation and Amortization [3]                 97 82 73
Operating Segments | United States Segment                      
Segment Reporting Information [Line Items]                      
Revenues                 3,203 2,877 2,620
Cost of Sales                 655 606 565
Gross Profit                 $ 2,548 $ 2,271 $ 2,055
Gross Margin                 79.60% 78.90% 78.40%
Operating Expenses                 $ 543 $ 456 $ 421
Other (income)/deductions                 0 0 3
Earnings                 2,005 1,815 1,637
Depreciation and Amortization [3]                 44 34 29
Operating Segments | International Segment                      
Segment Reporting Information [Line Items]                      
Revenues [4]                 2,972 2,890 2,643
Cost of Sales                 925 929 889
Gross Profit                 $ 2,047 $ 1,961 $ 1,754
Gross Margin                 68.90% 67.90% 66.40%
Operating Expenses                 $ 560 $ 559 $ 515
Other (income)/deductions                 0 (3) 1
Earnings                 1,487 1,399 1,240
Operating Segments | International                      
Segment Reporting Information [Line Items]                      
Depreciation and Amortization [3]                 53 48 44
Corporate, Non-Segment                      
Segment Reporting Information [Line Items]                      
Earnings                 (707) (666) (625)
Depreciation and Amortization [3]                   59 52
Segment Reconciling Items                      
Segment Reporting Information [Line Items]                      
Purchase accounting adjustments, earnings                 (234) (162) (88)
Purchase accounting adjustments, depreciation and amortization [3]                 219 143 88
Acquisition-related costs, earnings                 (43) (63) (10)
Certain significant items, earnings [5]                 (67) 43 (25)
Certain significant items, depreciation and amortization [3],[5]                 0 0 0
Other unallocated, earnings                 (292) (339) (291)
Other unallocated, deprecation and amortization [3]                 $ 3 $ 1 $ 6
[1]
Exclusive of amortization of intangible assets, except as disclosed in Note 3. Significant Accounting Policies—Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets.
[2]
Defined as income before provision for taxes on income.
[3]
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.
[4]
Revenue denominated in euros was $742 million in 2019, $745 million in 2018, and $660 million in 2017.
[5]
For 2019, certain significant items primarily includes: (i) a change in estimate related to inventory costing of $69 million, (ii) CEO transition-related costs of $10 million, (iii) consulting fees, product transfer costs, employee termination costs and exit costs related to cost-reduction and productivity initiatives of $7 million, and (iv) income of $20 million resulting from a payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.
For 2018, certain significant items primarily includes: (i) a net gain of $42 million related to the divestiture of certain agribusiness products within our International segment, (ii) a net gain of $18 million related to the relocation of a manufacturing site in China, (iii) charges related to our operational efficiency initiative and supply network strategy initiative of $9 million; and (iv) employee termination costs in Europe of $7 million.
For 2017, certain significant items primarily includes: (i) charges related to our operational efficiency initiative and supply network strategy initiative of $20 million; (ii) Zoetis stand-up costs of $3 million; (iii) employee termination costs in Europe of $4 million, (iv) income related to a commercial settlement in Mexico recorded in 2014 and 2016 of $5 million; and (iv) charges of $3 million associated with changes to our operating model.