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Revenue
 9 Months Ended
Sep. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
4. Revenue
A. Revenue from Product Sales
We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers and e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network.
Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to a single product in all brands, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock across each of our major product categories.
Our major product categories are:
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•medicated feed additives: products added to animal feed that provide medicines to livestock; and
•animal health diagnostics: portable blood and urine analysis systems and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, blood glucose monitors and reference laboratory services.
Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision livestock farming.
Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.
Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply.
The following tables present our revenue disaggregated by geographic area, species, and major product category:
Revenue by geographic area
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2021202020212020
United States$1,065 $996 $3,002 $2,605 
Australia70 60 196 154 
Brazil78 62 227 181 
Canada56 50 169 144 
Chile32 24 100 72 
China72 66 289 198 
France31 29 98 82 
Germany47 38 135 112 
Italy30 28 87 63 
Japan43 39 140 133 
Mexico31 26 98 84 
Spain33 31 97 83 
United Kingdom61 44 173 125 
Other developed markets127 105 350 282 
Other emerging markets193 165 591 490 
1,969 1,763 5,752 4,808 
Contract manufacturing & human health21 23 57 60 
Total Revenue$1,990 $1,786 $5,809 $4,868 
Revenue by major species
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2021202020212020
U.S.
Companion animal$775 $664 $2,227 $1,757 
Livestock290 332 775 848 
1,065 996 3,002 2,605 
International
Companion animal427 331 1,280 917 
Livestock477 436 1,470 1,286 
904 767 2,750 2,203 
Contract manufacturing & human health21 23 57 60 
Total Revenue$1,990 $1,786 $5,809 $4,868 
Revenue by species
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2021202020212020
Companion Animal:
Dogs and Cats$1,142 $947 $3,319 $2,524 
Horses60 48 188 150 
1,202 995 3,507 2,674 
Livestock:
Cattle403 417 1,144 1,107 
Swine153 151 504 454 
Poultry124 129 389 412 
Fish56 45 132 101 
Sheep and other31 26 76 60 
767 768 2,245 2,134 
Contract manufacturing & human health21 23 57 60 
Total Revenue$1,990 $1,786 $5,809 $4,868 
Revenue by major product category
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2021202020212020
Vaccines$421 $401 $1,251 $1,086 
Parasiticides396 305 1,246 867 
Anti-infectives329 349 909 870 
Dermatology326 257 859 681 
Other pharmaceuticals243 208 717 597 
Medicated feed additives99 102 314 336 
Animal health diagnostics95 87 283 216 
Other non-pharmaceuticals60 54 173 155 
1,969 1,763 5,752 4,808 
Contract manufacturing & human health21 23 57 60 
Total Revenue$1,990 $1,786 $5,809 $4,868 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2020 and December 31, 2019, and subsequently recognized as revenue during the first nine months of 2021 and 2020 were approximately $4 million and $6 million, respectively. Contract liabilities as of September 30, 2021 and December 31, 2020 were approximately $12 million and $13 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of September 30, 2021 is not material.