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Revenue
 3 Months Ended
Mar. 31, 2022
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 or 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 all different brands or a particular product, 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 within each of our major product categories.
Our major product categories are:
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•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: blood, urine and fecal analysis testing capabilities, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services and blood glucose monitors.
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 animal health.
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 Ended
March 31,
(MILLIONS OF DOLLARS)20222021
United States$1,020 $933 
Australia65 57 
Brazil77 74 
Canada49 46 
Chile41 34 
China103 123 
France32 35 
Germany43 38 
Italy30 25 
Japan59 47 
Mexico35 33 
Spain33 31 
United Kingdom64 69 
Other developed markets115 111 
Other emerging markets202 199 
1,968 1,855 
Contract manufacturing & human health18 16 
Total Revenue$1,986 $1,871 
Revenue by major species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20222021
U.S.
Companion animal$774 $658 
Livestock246 275 
1,020 933 
International
Companion animal489 418 
Livestock459 504 
948 922 
Total
Companion animal1,263 1,076 
Livestock705 779 
Contract manufacturing & human health18 16 
Total Revenue$1,986 $1,871 
Revenue by species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20222021
Companion Animal:
Dogs and Cats$1,199 $1,016 
Horses64 60 
1,263 1,076 
Livestock:
Cattle364 399 
Swine154 190 
Poultry124 131 
Fish44 37 
Sheep and other19 22 
705 779 
Contract manufacturing & human health18 16 
Total Revenue$1,986 $1,871 
Revenue by major product category
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20222021
Parasiticides$459 $390 
Vaccines405 413 
Dermatology311 248 
Anti-infectives285 321 
Other pharmaceuticals254 226 
Medicated feed additives98 112 
Animal health diagnostics98 89 
Other non-pharmaceuticals58 56 
1,968 1,855 
Contract manufacturing & human health18 16 
Total Revenue$1,986 $1,871 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2021 and 2020, and subsequently recognized as revenue during the first three months of 2022 and 2021 were approximately $2 million and $3 million, respectively. Contract liabilities as of March 31, 2022 and December 31, 2021 were approximately $14 million and $12 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of March 31, 2022 is not material.