Segment and Other Revenue Information Segment and Other Revenue Information (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Selected Income Statement Information by Segment

Selected Statement of Income Information



						Depreciation
(MILLIONS OF DOLLARS)	Revenue^(a)		Earnings^(b)			and Amortization^(c)
Year Ended December 31, 2013
U.S.	$	1,902	$	1,045		$	43
EuAfME	1,168		420			25
CLAR	778		266			18
APAC	713		271			13
Total reportable segments	4,561		2,002			99
Other business activities^(d)	—		(320		)	25
Reconciling Items:
Corporate^(e)	—		(567		)	23
Purchase accounting adjustments^(f)	—		(48		)	48
Acquisition-related costs^(g)	—		(22		)	—
Certain significant items^(h)	—		(240		)	5
Other unallocated⁽ⁱ⁾	—		(115		)	9
	$	4,561	$	690		$	209

Year Ended December 31, 2012
U.S.	$	1,776	$	921		$	28
EuAfME	1,096		375			28
CLAR	769		253			23
APAC	695		236			17
Total reportable segments	4,336		1,785			96
Other business activities^(d)	—		(275		)	16
Reconciling Items:
Corporate^(e)	—		(506		)	25
Purchase accounting adjustments^(f)	—		(52		)	52
Acquisition-related costs^(g)	—		(53		)	10
Certain significant items^(h)	—		(96		)	1
Other unallocated⁽ⁱ⁾	—		(93		)	—
	$	4,336	$	710		$	200

Year Ended December 31, 2011
U.S.	$	1,659	$	820		$	26
EuAfME	1,144		365			25
CLAR	788		275			25
APAC	642		196			15
Total reportable segments	4,233		1,656			91
Other business activities^(d)	—		(279		)	15
Reconciling Items:
Corporate^(e)	—		(504		)	31
Purchase accounting adjustments^(f)	—		(82		)	59
Acquisition-related costs^(g)	—		(122		)	6
Certain significant items^(h)	—		(172		)	3
Other unallocated⁽ⁱ⁾	—		(103		)	—
	$	4,233	$	394		$	205


^(a)	Revenue denominated in euros were $693 million in 2013, $639 million in 2012, and $710 million in 2011.


^(b)	Defined as income before provision for taxes on income.


^(c)	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.


^(d)	Other business activities reflects R&D costs managed by our Research and Development organization and not allocated to the operating segments.


^(e)	Corporate includes, among other things, administration expenses, interest expense, certain compensation and other costs not charged to our operating segments.


^(f)	Purchase accounting adjustments include certain charges related to intangible assets, property, plant and equipment not charged to our operating segments, and the fair value adjustments to inventory.

^(g)

Acquisition-related costs can include costs associated with acquiring, integrating and restructuring acquired businesses, such as allocated transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring. For additional information, see Note 6. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives.

^(h)

Certain significant items are 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 items primarily include restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition, the impact of divestiture-related gains and losses and certain costs related to becoming an independent public company. For additional information, see Note 6. Restructuring Charges and Other Costs Associated with Acquisition and Cost-Reduction/Productivity Initiatives.

•

For 2013, certain significant items primarily includes: (i) Zoetis stand-up costs of $206 million; (ii) $20 million income primarily related to a reversal of certain employee termination expenses, partially offset by restructuring charges related to exiting certain manufacturing and research facilities; (iii) $6 million income on the government-mandated sale of certain product rights in Brazil that were acquired with the FDAH acquisition in 2009; (iv) asset impairment charges associated with asset restructuring of $19 million; (v) additional depreciation associated with asset restructuring of $8 million; (vi) write-offs of inventory and intercompany accounts that were transferred to us as part of the Separation from Pfizer of $24 million; and (vii) litigation-related charges of $5 million. Stand-up costs include certain nonrecurring costs related to becoming an independent public company, such as new branding (including changes to the manufacturing process for required new packaging), the creation of standalone systems and infrastructure, site separation, accelerated vesting and associated cash payment related to certain Pfizer equity awards, and certain legal registration and patent assignment costs.

•

For 2012, certain significant items includes: (i) $115 million for restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition; (ii) $14 million income related to a favorable legal settlement for an intellectual property matter; and (iii) $4 million income due to a change in estimate related to transitional manufacturing purchase agreements associated with divestitures.

•

In 2011, certain significant items includes: (i) $62 million for restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition; (ii) certain asset impairment charges of $69 million; (iii) certain charges to write-off inventory of $12 million; (iv) charges related to transitional manufacturing purchase agreements associated with divestitures of $27 million; and (v)other costs of $2 million.


⁽ⁱ⁾	Includes overhead expenses associated with our manufacturing operations.

Long-lived Assets by Geographic Areas [Table Text Block]

Property, plant and equipment, less accumulated depreciation, by geographic region follow:



	As of December 31,
(MILLIONS OF DOLLARS)	2013		2012
U.S.	$	827	$	788
EuAfME	233		224
CLAR	114		72
APAC	121		157
Property, plant and equipment, less accumulated depreciation	$	1,295	$	1,241

Schedule of Significant Product Revenues

Revenue by Species

Significant species revenue are as follows:



	Year Ended December 31,
(MILLIONS OF DOLLARS)	2013		2012		2011
Livestock:
Cattle	$	1,631	$	1,608	$	1,617
Swine	655		590		562
Poultry	541		501		501
Other	104		107		98
	2,931		2,806		2,778
Companion Animal:
Horses	179		187		168
Dogs and Cats	1,451		1,343		1,287
	1,630		1,530		1,455
Total revenue	$	4,561	$	4,336	$	4,233

Revenue by Major Product Category

Significant revenue by major product category are as follows:



	Year Ended December 31,
(MILLIONS OF DOLLARS)	2013		2012		2011
Anti-infectives	$	1,295	$	1,268	$	1,311
Vaccines	1,201		1,117		1,077
Parasiticides	727		692		645
Medicated feed additives	446		403		347
Other pharmaceuticals	744		712		724
Other non-pharmaceuticals	148		144		129
Total revenue	$	4,561	$	4,336	$	4,233

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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