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Segment and Other Revenue Information - Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Oct. 02, 2016
Sep. 27, 2015
Oct. 02, 2016
Sep. 27, 2015
Segment Reporting Information [Line Items]        
Revenue $ 1,241 $ 1,214 $ 3,611 $ 3,491
Cost of Sales [1] 410 421 1,198 1,242
Other (income)/deductions 3 2 29 0
Earnings [2] 333 273 997 476
Depreciation and amortization [2],[3] 60 46 177 144
Other business activities        
Segment Reporting Information [Line Items]        
Earnings (71) (73) (219) (208)
Depreciation and amortization [3] 7 6 19 19
Corporate Segment        
Segment Reporting Information [Line Items]        
Earnings (159) (138) (499) (392)
Depreciation and amortization [3] 11 9 33 28
Purchase Accounting Adjustments        
Segment Reporting Information [Line Items]        
Earnings (25) (13) (79) (41)
Depreciation and amortization [3] 21 14 64 39
Acquisition-related Costs        
Segment Reporting Information [Line Items]        
Earnings 0 (6) (3) (11)
Depreciation and amortization [3] 0 0 0 0
Certain Significant Items        
Segment Reporting Information [Line Items]        
Earnings [4] (16) (46) 1 (406)
Depreciation and amortization [3],[4] 2 1 5 3
Other unallocated        
Segment Reporting Information [Line Items]        
Earnings (54) (56) (117) (177)
Depreciation and amortization [3] 1 1 3 3
Operating Segments | Reportable Segment        
Segment Reporting Information [Line Items]        
Earnings 658 605 1,913 1,711
Depreciation and amortization [3] 18 15 53 52
Operating Segments | United States (U.S.)        
Segment Reporting Information [Line Items]        
Revenue 640 632 1,816 1,692
Cost of Sales 137 147 402 399
Gross Profit $ 503 $ 485 $ 1,414 $ 1,293
Gross margin (as a percent) 78.60% 76.70% 77.90% 76.40%
Operating Expenses $ 101 $ 100 $ 293 $ 274
Other (income)/deductions 0 (1) 0 (1)
Earnings 402 386 1,121 1,020
Depreciation and amortization [3] 7 5 20 18
Operating Segments | International        
Segment Reporting Information [Line Items]        
Revenue [5] 585 569 1,754 1,762
Cost of Sales 201 209 598 638
Gross Profit $ 384 $ 360 $ 1,156 $ 1,124
Gross margin (as a percent) 65.60% 63.30% 65.90% 63.80%
Operating Expenses $ 128 $ 137 $ 361 $ 423
Other (income)/deductions 0 4 3 10
Earnings 256 219 792 691
Depreciation and amortization [3] $ 11 $ 10 $ 33 $ 34
[1] Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to finite-lived acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, general and administrative expenses or Research and development expenses, as appropriate, in the condensed consolidated statements of income.
[2] Defined as income before provision for taxes on income.
[3] 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.
[4] For the three months ended October 2, 2016, Certain significant items primarily includes: (i) Zoetis stand-up costs of $1 million; (ii) a $3 million increase in in certain employee termination accruals, exit costs of $1 million, accelerated depreciation of $2 million, inventory write-offs of $1 million, and consulting fees of $4 million related to our operational efficiency initiative, supply network strategy, and other restructuring activities, (iii) an impairment of finite-lived trademarks of $1 million related to a canine pain management product; and (iv) charges of $3 million associated with changes to our operating model. Stand-up costs include certain nonrecurring costs related to becoming an independent public company, such as the creation of standalone systems and infrastructure, site separation, new branding (including changes to the manufacturing process for required new packaging), and certain legal registration and patent assignment costs. For the nine months ended October 2, 2016, Certain significant items primarily includes: (i) Zoetis stand-up costs of $18 million; (ii) a net gain of $27 million related to divestitures as a result of our operational efficiency initiative; (iii) a $20 million net reduction in certain employee termination accruals, partially offset by exit costs of $3 million, accelerated depreciation of $5 million, inventory write-offs of $1 million, and consulting fees of $14 million related to our operational efficiency initiative, supply network strategy and other restructuring activities; (iv) an impairment of finite-lived trademarks of $1 million, and (v) charges of $4 million associated with changes to our operating model. For the three months ended September 27, 2015, Certain significant items primarily includes: (i) Zoetis stand-up costs of $22 million and (ii) charges related to our operational efficiency initiative and supply network strategy of $24 million.For the nine months ended September 27, 2015, Certain significant items primarily includes: (i) Zoetis stand-up costs of $84 million; (ii) charges related to our operational efficiency initiative and supply network strategy of $317 million; (iii) an impairment of IPR&D assets of $2 million related to the termination of a canine oncology project; and (iv) charges due to unusual investor-related activities of $3 million.
[5] Revenue denominated in euros was $157 million and $469 million for the three and nine months ended October 2, 2016, respectively, and $139 million and $425 million for the three and nine months ended September 27, 2015, respectively.