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Segment and Other Revenue Information - Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 02, 2017
Apr. 03, 2016
Segment Reporting Information [Line Items]    
Revenue $ 1,231 $ 1,162
Cost of Sales [1] 443 389
Other (income)/deductions 10 30
Earnings [2] 337 332
Depreciation and amortization [2],[3] 62 57
Other business activities    
Segment Reporting Information [Line Items]    
Earnings (74) (74)
Depreciation and amortization [3] 6 6
Corporate Segment    
Segment Reporting Information [Line Items]    
Earnings (143) (169)
Depreciation and amortization [3] 12 10
Purchase Accounting Adjustments    
Segment Reporting Information [Line Items]    
Earnings (22) (26)
Depreciation and amortization [3] 22 22
Acquisition-related Costs    
Segment Reporting Information [Line Items]    
Earnings 0 (1)
Depreciation and amortization [3] 0 0
Certain Significant Items    
Segment Reporting Information [Line Items]    
Earnings [4] (4) 13
Depreciation and amortization [3],[4] 2 1
Other unallocated    
Segment Reporting Information [Line Items]    
Earnings (83) (30)
Depreciation and amortization [3] 2 1
Operating Segments | Reportable Segment    
Segment Reporting Information [Line Items]    
Earnings 663 619
Depreciation and amortization [3] 18 17
Operating Segments | United States (U.S.)    
Segment Reporting Information [Line Items]    
Revenue 605 582
Cost of Sales 137 131
Gross Profit $ 468 $ 451
Gross margin (as a percent) 77.40% 77.50%
Operating Expenses $ 96 $ 92
Other (income)/deductions 0 0
Earnings 372 359
Depreciation and amortization [3] 7 6
Operating Segments | International    
Segment Reporting Information [Line Items]    
Revenue [5] 615 567
Cost of Sales 213 196
Gross Profit $ 402 $ 371
Gross margin (as a percent) 65.40% 65.40%
Operating Expenses $ 114 $ 109
Other (income)/deductions (3) 2
Earnings 291 260
Depreciation and amortization [3] $ 11 $ 11
[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 April 2, 2017, Certain significant items primarily includes: (i) a $1 million reversal of previously accrued employee termination costs, accelerated depreciation charges of $1 million, and consulting fees of $2 million, related to our operational efficiency initiative and supply network strategy, and (ii) charges of $2 million associated with changes to our operating model. For the three months ended April 3, 2016, Certain significant items primarily includes: (i) Zoetis stand-up costs of $12 million; (ii) a net gain of $33 million related to the sale of certain manufacturing sites and products as a result of our operational efficiency initiative, and (iii) employee termination costs of $1 million, exit costs of $1 million, accelerated depreciation charges of $1 million, and consulting fees of $5 million, related to our operational efficiency initiative and supply network strategy. 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.
[5] Revenue denominated in euros was $148 million and $154 million for the three months ended April 2, 2017, and April 3, 2016, respectively.