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Segment and Other Revenue Information - Statement of Income (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jul. 02, 2017
Jul. 03, 2016
Jul. 02, 2017
Jul. 03, 2016
Segment Reporting Information [Line Items]        
Revenue $ 1,269 $ 1,208 $ 2,500 $ 2,370
Cost of Sales [1] 440 399 883 788
Other (income)/deductions—net (2) 4 (12) (26)
Income before provision for taxes on income [2] 345 332 682 664
Depreciation and amortization [2],[3] 59 60 121 117
Other business activities        
Segment Reporting Information [Line Items]        
Income before provision for taxes on income (73) (74) (147) (148)
Depreciation and amortization [3] 6 6 12 12
Operating Segments        
Segment Reporting Information [Line Items]        
Income before provision for taxes on income 663 636 1,326 1,255
Depreciation and amortization [3] 18 18 36 35
Operating Segments | U.S.        
Segment Reporting Information [Line Items]        
Revenue 623 594 1,228 1,176
Cost of Sales 134 134 271 265
Gross Profit $ 489 $ 460 $ 957 $ 911
Gross margin, percentage 78.50% 77.40% 77.90% 77.50%
Operating Expenses $ 113 $ 100 $ 209 $ 192
Other (income)/deductions—net 0 0 0 0
Income before provision for taxes on income 376 360 748 719
Depreciation and amortization [3] 7 7 14 13
Operating Segments | International        
Segment Reporting Information [Line Items]        
Revenue [4] 634 602 1,249 1,169
Cost of Sales 219 201 432 397
Gross Profit $ 415 $ 401 $ 817 $ 772
Gross margin, percentage 65.50% 66.60% 65.40% 66.00%
Operating Expenses $ 126 $ 124 $ 240 $ 233
Other (income)/deductions—net 2 1 (1) 3
Income before provision for taxes on income 287 276 578 536
Depreciation and amortization [3] 11 11 22 22
Corporate        
Segment Reporting Information [Line Items]        
Income before provision for taxes on income (151) (171) (294) (340)
Depreciation and amortization [3] 13 12 25 22
Reconciling Items        
Segment Reporting Information [Line Items]        
Purchase accounting adjustments, Earnings (21) (28) (43) (54)
Purchase accounting adjustments, Depreciation and Amortization [3] 21 21 43 43
Acquisition-related costs (2) (2) (2) (3)
Certain significant items, Earnings [5] 1 4 (3) 17
Certain significant items, Depreciation and Amortization [3],[5] 0 2 2 3
Other unallocated, Earnings (72) (33) (155) (63)
Other Unallocated, Depreciation and Amortization [3] $ 1 $ 1 $ 3 $ 2
[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] Revenue denominated in euros was $155 million and $303 million for the three and six months ended July 2, 2017, respectively, and $158 million and $312 million for the three and six months ended July 3, 2016, respectively.
[5] For the three months ended July 2, 2017, Certain significant items primarily includes: (i) a reversal of previously accrued employee termination costs of $3 million, exit costs of $1 million, accelerated depreciation of $1 million, consulting fees of $1 million, and a net loss on sales of certain manufacturing sites and products of $2 million related to our operational efficiency initiative and supply network strategy, (ii) charges of $1 million associated with changes to our operating model, and (iii) income of $4 million related to an insurance recovery from commercial settlements in Mexico recorded in 2014 and 2016. For the three months ended July 3, 2016, Certain significant items primarily includes: (i) Zoetis stand-up costs of $5 million; (ii) a net loss of $6 million related to sales of certain manufacturing sites and products as a result of our operational efficiency initiative; (iii) a $24 million net reduction in certain employee termination accruals, partially offset by exit costs of $1 million, accelerated depreciation of $2 million, and consulting fees of $5 million, related to our operational efficiency initiative, supply network strategy, and other restructuring activities, and (iv) charges of $1 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 six months ended July 2, 2017, Certain significant items primarily includes: (i) a reversal of previously accrued employee termination costs of $4 million, exit costs of $1 million, accelerated depreciation charges of $2 million, consulting fees of $3 million, and a net loss related to sales of certain manufacturing sites and products of $2 million, related to our operational efficiency initiative and supply network strategy, (ii) charges of $3 million associated with changes to our operating model, and (iii) income of $4 million related to an insurance recovery from commercial settlements in Mexico recorded in 2014 and 2016. For the six months ended July 3, 2016, Certain significant items primarily includes: (i) Zoetis stand-up costs of $17 million; (ii) a net gain of $27 million related to sales of certain manufacturing sites and products as a result of our operational efficiency initiative, (iii) a $23 million net reduction in certain employee termination accruals, partially offset by exit costs of $2 million, accelerated depreciation of $3 million and consulting fees of $10 million related to our operational efficiency initiative, supply network strategy and other restructuring activities, and (iv) charges of $1 million associated with changes to our operating model.