XML 49 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information Segment Information (Tables)
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Schedule of Selected Income Statement Information by Segment
 
 
Earnings
 
Depreciation and Amortization(a)
 
 
Three Months Ended
 
Three Months Ended
 
 
March 31,

 
April 2,

 
March 31,

 
April 2,

(MILLIONS OF DOLLARS)
 
2018

 
2017

 
2018

 
2017

U.S.
 
 
 
 
 
 
 
 
Revenue
 
$
634

 
$
605

 
 
 
 
Cost of sales
 
140

 
137

 
 
 
 
Gross profit
 
494

 
468

 
 
 
 
    Gross margin
 
77.9
%
 
77.4
%
 
 
 
 
Operating expenses
 
96

 
96

 
 
 
 
Other (income)/deductions
 
—

 
—

 
 
 
 
U.S. Earnings
 
398

 
372

 
$
8

 
$
7

 
 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
 
Revenue(b)
 
726

 
615

 
 
 
 
Cost of sales
 
234

 
213

 
 
 
 
Gross profit
 
492

 
402

 
 
 
 
    Gross margin
 
67.8
%
 
65.4
%
 
 
 
 
Operating expenses
 
133

 
114

 
 
 
 
Other (income)/deductions
 
1

 
(3
)
 
 
 
 
International Earnings
 
358

 
291

 
11

 
11

 
 
 
 
 
 
 
 
 
Total operating segments
 
756

 
663

 
19

 
18

 
 
 
 
 
 
 
 
 
Other business activities
 
(81
)
 
(74
)
 
5

 
6

Reconciling Items:
 
 
 
 
 
 
 
 
Corporate
 
(153
)
 
(143
)
 
13

 
12

Purchase accounting adjustments
 
(23
)
 
(22
)
 
23

 
22

Acquisition-related costs
 
(1
)
 
—

 
—

 
—

Certain significant items(c)
 
(3
)
 
(4
)
 
—

 
2

Other unallocated
 
(78
)
 
(83
)
 
—

 
2

Total Earnings(d)
 
$
417

 
$
337

 
$
60

 
$
62


(a) 
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.
(b) 
Revenue denominated in euros was $184 million and $148 million for the three months ended March 31, 2018, and April 2, 2017, respectively.
(c) 
For the three months ended March 31, 2018, Certain significant items primarily includes: (i) employee termination costs of $1 million, and consulting fees of $1 million, related to our supply network strategy, and (ii) a charge of $1 million related to the implementation of new accounting guidance as a result of the enactment of the Tax Act.
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.
(d) 
Defined as income before provision for taxes on income.
Schedule of Significant Product Revenues
Revenue by major product category
 
 
Three Months Ended
 
 
March 31,

 
April 2,

(MILLIONS OF DOLLARS)
 
2018

 
2017

Vaccines
 
$
356

 
$
319

Anti-infectives
 
297

 
268

Other pharmaceuticals
 
319

 
272

Parasiticides
 
191

 
184

Medicated feed additives
 
137

 
123

Other non-pharmaceuticals
 
60

 
54

 
 
1,360

 
1,220

 
 
 
 
 
Contract Manufacturing
 
6

 
11

 
 
 
 
 
Total Revenue
 
$
1,366

 
$
1,231