XML 37 R25.htm IDEA: XBRL DOCUMENT
v3.25.2

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2025
Segment Reporting [Abstract] |
Segment Information | 16. Segment Information Operating Segments We manage our operations through two geographic regions. Each operating segment has responsibility for its commercial activities. Within each of these operating segments, we offer a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical and animal health diagnostics for both companion animal and livestock customers. On October 31, 2024, we completed the divestiture of our medicated feed additive product portfolio, certain water soluble products and related assets, and, as a result, our major product categories no longer include the category of medicated feed additives. See Note 5. Divestitures. Our operating segments are the U.S. and International. The chief operating decision maker (CODM), our Chief Executive Officer and Chief Financial Officer, uses the information provided to compare segment performance with segment resource requests and allocates human and capital resources based on segment’s actual results and expected future results. Other Costs and Business Activities Certain costs are not allocated to our operating segment results, such as costs associated with the following: • Other business activities, includes our Client Supply Services contract manufacturing results, our human health business, and expenses associated with our dedicated veterinary medicine research and development organization, research alliances, U.S. regulatory affairs and other operations focused on the development of our products. Other R&D-related costs associated with non-U.S. market and regulatory activities are generally included in the international commercial segment. • Corporate, includes enabling functions such as information technology, facilities, legal, finance, human resources, business development, certain diagnostic costs and communications, among others. These costs also include certain compensation costs, certain procurement costs and other miscellaneous operating expenses not charged to our operating segments, as well as interest income and expense. •Certain transactions and events such as (i) Purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) Acquisition and divestiture-related costs, where we incur costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as divestiture-related costs; and (iii) Certain significant items, which comprise substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis, such as restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition or divestiture, certain asset impairment charges, certain legal and commercial settlements and the impact of divestiture-related gains and losses. •Other unallocated includes (i) certain overhead expenses associated with our global manufacturing operations not charged to our operating segments; (ii) certain costs associated with finance that specifically support our global manufacturing operations; (iii) certain supply chain and global logistics costs; and (iv) certain procurement costs. Segment Assets We manage our assets on a total company basis, not by operating segment. Therefore, our CODM does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Selected Statement of Income Information
|  | Earnings |  | Depreciation and Amortization(a)
|  | Three Months Ended |  | Three Months Ended
|  | June 30, |  | June 30,
(MILLIONS OF DOLLARS) |  | 2025 |  | 2024 |  | 2025 |  | 2024
U.S. |  |  |  |  |  |  |  |
Revenue |  | $ | 1,356 |  |  | $ | 1,308 |  |  |  |  |
Cost of sales |  | 208 |  |  | 232 |  |  |  |  |
Gross profit |  | 1,148 |  |  | 1,076 |  |  |  |  |
Gross margin |  | 84.7 | % |  | 82.3 | % |  |  |  |
Operating expenses(b) |  | 218 |  |  | 204 |  |  |  |  |
Other (income)/deductions-net |  | — |  |  | — |  |  |  |  |
U.S. Earnings |  | 930 |  |  | 872 |  |  | $ | 22 |  |  | $ | 21 |
International |  |  |  |  |  |  |  |
Revenue(c) |  | 1,070 |  |  | 1,035 |  |  |  |  |
Cost of sales |  | 314 |  |  | 342 |  |  |  |  |
Gross profit |  | 756 |  |  | 693 |  |  |  |  |
Gross margin |  | 70.7 | % |  | 67.0 | % |  |  |  |
Operating expenses(b) |  | 173 |  |  | 175 |  |  |  |  |
Other (income)/deductions-net |  | — |  |  | — |  |  |  |  |
International Earnings |  | 583 |  |  | 518 |  |  | 25 |  |  | 25 |
Total operating segments |  | 1,513 |  |  | 1,390 |  |  | 47 |  |  | 46 |
Other business activities |  | (134) |  |  | (142) |  |  | 13 |  |  | 11 |
Reconciling Items: |  |  |  |  |  |  |  |
Corporate |  | (321) |  |  | (299) |  |  | 29 |  |  | 33 |
Purchase accounting adjustments |  | (33) |  |  | (35) |  |  | 33 |  |  | 35 |
Acquisition and divestiture-related costs |  | (1) |  |  | (5) |  |  | — |  |  | — |
Certain significant items |  | (47) |  |  | (70) |  |  | — |  |  | — |
Other unallocated |  | (75) |  |  | (59) |  |  | 1 |  |  | 2 |
Total Earnings(d) |  | $ | 902 |  |  | $ | 780 |  |  | $ | 123 |  |  | $ | 127 |
(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) Operating expenses primarily consisted of field selling, advertising and promotions, other marketing expenses, and freight and logistics costs. (c) Revenue denominated in euros was $241 million and $237 million for the three months ended June 30, 2025 and 2024, respectively. (d) Defined as income before provision for taxes on income.
|  | Earnings |  | Depreciation and Amortization(a)
|  | Six Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
(MILLIONS OF DOLLARS) |  | 2025 |  | 2024 |  | 2025 |  | 2024
U.S. |  |  |  |  |  |  |  |
Revenue |  | $ | 2,539 |  |  | $ | 2,471 |  |  |  |  |
Cost of sales |  | 407 |  |  | 449 |  |  |  |  |
Gross profit |  | 2,132 |  |  | 2,022 |  |  |  |  |
Gross margin |  | 84.0 | % |  | 81.8 | % |  |  |  |
Operating expenses(b) |  | 423 |  |  | 394 |  |  |  |  |
Other (income)/deductions-net |  | — |  |  | — |  |  |  |  |
U.S. Earnings |  | 1,709 |  |  | 1,628 |  |  | $ | 45 |  |  | $ | 45 |
International |  |  |  |  |  |  |  |
Revenue(c) |  | 2,078 |  |  | 2,042 |  |  |  |  |
Cost of sales |  | 616 |  |  | 655 |  |  |  |  |
Gross profit |  | 1,462 |  |  | 1,387 |  |  |  |  |
Gross margin |  | 70.4 | % |  | 67.9 | % |  |  |  |
Operating expenses(b) |  | 327 |  |  | 334 |  |  |  |  |
Other (income)/deductions-net |  | 1 |  |  | — |  |  |  |  |
International Earnings |  | 1,134 |  |  | 1,053 |  |  | 48 |  |  | 48 |
Total operating segments |  | 2,843 |  |  | 2,681 |  |  | 93 |  |  | 93 |
Other business activities |  | (263) |  |  | (274) |  |  | 24 |  |  | 20 |
Reconciling Items: |  |  |  |  |  |  |  |
Corporate |  | (592) |  |  | (587) |  |  | 58 |  |  | 65 |
Purchase accounting adjustments |  | (65) |  |  | (72) |  |  | 65 |  |  | 72 |
Acquisition and divestiture-related costs |  | (1) |  |  | (5) |  |  | — |  |  | — |
Certain significant items |  | (53) |  |  | (76) |  |  | — |  |  | — |
Other unallocated |  | (157) |  |  | (140) |  |  | 2 |  |  | 3 |
Total Earnings(d) |  | $ | 1,712 |  |  | $ | 1,527 |  |  | $ | 242 |  |  | $ | 253 |
(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) Operating expenses primarily consisted of field selling, advertising and promotions, other marketing expenses, and freight and logistics costs. (c) Revenue denominated in euros was $468 million and $460 million for the six months ended June 30, 2025 and 2024, respectively. (d) Defined as income before provision for taxes on income.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 12: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 14: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration