Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Selected Income Statement Information by Segment

	Earnings						Depreciation and Amortization(a)
	Three Months Ended						Three Months Ended
	September 30,						September 30,
(MILLIONS OF DOLLARS)	2024			2023			2024		2023
U.S.
Revenue	$	1,346		$	1,174
Cost of sales	258			228
Gross profit	1,088			946
Gross margin	80.8		%	80.6		%
Operating expenses	199			202
Other (income)/deductions-net	—			—
U.S. Earnings	889			744			$	20	$	19
International
Revenue(b)	1,021			956
Cost of sales	321			306
Gross profit	700			650
Gross margin	68.6		%	68.0		%
Operating expenses	157			156
Other (income)/deductions-net	1			1
International Earnings	542			493			25		24
Total operating segments	1,431			1,237			45		43
Other business activities	(137)			(124)			9		9
Reconciling Items:
Corporate	(306)			(258)			31		33
Purchase accounting adjustments	(35)			(39)			35		39
Acquisition and divestiture-related costs	(7)			(3)			—		—
Certain significant items(c)	(1)			(23)			—		—
Other unallocated	(71)			(73)			1		—
Total Earnings(d)	$	874		$	717		$	121	$	124

(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 was $234 million and $206 million for the three months ended September 30, 2024 and 2023, respectively.

(c)    For the three months ended September 30, 2023, primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, as well as certain asset impairment charges related to our diagnostics and precision animal health businesses.

(d)    Defined as income before provision for taxes on income.

	Earnings						Depreciation and Amortization(a)
	Nine Months Ended						Nine Months Ended
	September 30,						September 30,
(MILLIONS OF DOLLARS)	2024			2023			2024		2023
U.S.
Revenue	$	3,817		$	3,344
Cost of sales	707			645
Gross profit	3,110			2,699
Gross margin	81.5		%	80.7		%
Operating expenses	593			602
Other (income)/deductions-net	—			—
U.S. Earnings	2,517			2,097			$	65	$	58
International
Revenue(b)	3,063			2,929
Cost of sales	976			912
Gross profit	2,087			2,017
Gross margin	68.1		%	68.9		%
Operating expenses	491			473
Other (income)/deductions-net	1			1
International Earnings	1,595			1,543			73		67
Total operating segments	4,112			3,640			138		125
Other business activities	(411)			(354)			29		24
Reconciling Items:
Corporate	(893)			(722)			96		95
Purchase accounting adjustments	(107)			(124)			107		118
Acquisition and divestiture-related costs	(12)			(8)			—		—
Certain significant items(c)	(77)			45			—		—
Other unallocated	(211)			(191)			4		3
Total Earnings(d)	$	2,401		$	2,286		$	374	$	365

(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 was $694 million and $627 million for the nine months ended September 30, 2024 and 2023, respectively.

(c)    For the nine months ended September 30, 2024, primarily consisted of employee termination costs related to organizational structure refinements, a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, as well as asset impairment charges related to our aquaculture business, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative.

For the nine months ended September 30, 2023, primarily consisted of a gain on the sale of a majority interest in our pet insurance business, partially offset by employee termination costs related to organizational structure refinements and certain asset impairment charges related to our precision animal health and diagnostics businesses.

(d)    Defined as income before provision for taxes on income.