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CONSOLIDATED AND COMBINED STATEMENTS OF INCOME (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement [Abstract]      
Revenue $ 4,561 [1] $ 4,336 [1] $ 4,233 [1],[2]
Costs and expenses:      
Cost of sales(b) 1,669 [3] 1,563 [3] 1,652 [2],[3]
Selling, general and administrative expenses(b) 1,613 [3] 1,470 [3] 1,453 [2],[3]
Research and development expenses(b) 399 [3] 409 [3] 427 [2],[3]
Amortization of intangible assets 60 64 69 [2]
Restructuring charges and certain acquisition-related costs 26 135 154 [2]
Interest expense, net of capitalized interest 113 31 36 [2]
Other (income)/deductions––net (9) (46) 48 [2]
Income before provision for taxes on income 690 [4],[5],[6] 710 [4],[5],[6] 394 [2],[4],[5],[6]
Provision for taxes on income 187 [4],[6],[7] 274 [4],[6],[7] 146 [2],[4],[6],[7]
Net income before allocation to noncontrolling interests 503 436 248 [2],[8]
Net income/(loss) attributable to noncontrolling interests (1) 0 3 [2]
Net income attributable to Zoetis $ 504 $ 436 $ 245 [2]
Earnings per share attributable to Zoetis Inc. stockholders:      
Basic (in dollars per share) $ 1.01 $ 0.87 $ 0.49 [2]
Diluted (in dollars per share) $ 1.01 $ 0.87 $ 0.49 [2]
Weighted-average common shares outstanding(c):      
Basic (in shares) 500,002 500,000 [9] 500,000 [2],[9]
Diluted (in shares) 500,317 500,000 [9] 500,000 [2],[9]
Dividends declared per common share $ 0.267 $ 0.000 $ 0
[1] Revenue denominated in euros were $693 million in 2013, $639 million in 2012, and $710 million in 2011.
[2] Includes revenue and expenses from acquisitions from the acquisition date, see Note 3. Basis of Presentation and Note 5. Acquisitions, Divestitures and Certain Investments.
[3] Exclusive of amortization of intangible assets, except as disclosed in Note 4. Significant Accounting Policies—Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets.
[4] In 2012, the Provision for taxes on income reflects the following:•U.S. tax benefits of approximately $29.3 million, representing tax and interest, resulting from a multi-year settlement with the U.S. Internal Revenue Service with respect to audits for the years 2006 through 2008, and international tax benefits of approximately $2.7 million, representing tax and interest, resulting from the resolution of certain tax positions pertaining to prior years with various foreign tax authorities and from the expiration of certain statutes of limitations;•U.S. tax expense of approximately $9 million as a result of providing U.S. deferred income taxes on certain current-year income earned outside the United States that will not be indefinitely reinvested overseas (see C. Deferred Taxes);•The expiration of the U.S. Research and Development Tax Credit on December 31, 2011; and•Tax cost related to changes in uncertain tax positions (see D. Tax Contingencies).
[5] Defined as income before provision for taxes on income.
[6] In 2013, the Provision for taxes on income reflects the following:•U.S. tax expense of approximately $3 million as a result of providing U.S. deferred income taxes on certain current-year income earned outside the United States that will not be indefinitely reinvested overseas (see C. Deferred Taxes);•U.S. tax benefit related to U.S. Research and Development Tax Credit which was retroactively extended on January 3, 2013, and the U.S. Domestic Production Activities deduction;•Tax expense of approximately $25 million related to the establishment of valuation allowance; and •Tax cost related to changes in uncertain tax positions (see D. Tax Contingencies).
[7] In 2011, the Provision for taxes on income reflects the following:•U.S. tax expense of approximately $9 million as a result of providing U.S. deferred income taxes on certain current-year income earned outside of the United States that will not be indefinitely reinvested overseas; and •U.S. tax benefits of approximately $9.5 million, representing tax and interest, resulting from the tax benefit recorded in connection with the settlement of certain audits with the U.S. Internal Revenue Service.
[8] Includes impacts from acquisitions from the acquisition date, see Note 3. Basis of Presentation and Note 5. Acquisitions, Divestitures and Certain Investments.
[9] The weighted average shares outstanding for both basic and diluted earnings per share for the years ended December 31, 2012 and 2011 was calculated using 500 million shares of common stock outstanding, which was the number of Zoetis Inc. shares outstanding at the time of the initial public offering, which was completed on February 6, 2013. There were no Zoetis restricted stock units, deferred stock units, stock options or performance shares outstanding prior to the initial public offering.