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Segment Information Segment Information (Tables)
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of Selected Income Statement Information by Segment
Selected Statement of Income Information                                 
 
 
Earnings
 
Depreciation and Amortization(a)
 
 
Year Ended December 31,
 
Year Ended December 31,
(MILLIONS OF DOLLARS)
 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

U.S.
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
2,877

 
$
2,620

 
$
2,447

 
 
 
 
 
 
Cost of Sales
 
606

 
565

 
551

 
 
 
 
 
 
Gross Profit
 
2,271

 
2,055

 
1,896

 
 
 
 
 
 
    Gross Margin
 
78.9
%
 
78.4
%
 
77.5
%
 
 
 
 
 
 
Operating Expenses
 
456

 
421

 
388

 
 
 
 
 
 
Other (income)/deductions
 
—

 
(3
)
 
—

 
 
 
 
 
 
U.S. Earnings
 
1,815

 
1,637

 
1,508

 
$
34

 
$
29

 
$
27

 
 
 
 
 
 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
 
 
 
 
 
Revenue(b)
 
2,890

 
2,643

 
2,390

 
 
 
 
 
 
Cost of Sales
 
929

 
889

 
833

 
 
 
 
 
 
Gross Profit
 
1,961

 
1,754

 
1,557

 
 
 
 
 
 
    Gross Margin
 
67.9
%
 
66.4
%
 
65.1
%
 
 
 
 
 
 
Operating Expenses
 
559

 
515

 
501

 
 
 
 
 
 
Other (income)/deductions
 
3

 
(1
)
 
2

 
 
 
 
 
 
International Earnings
 
1,399

 
1,240

 
1,054

 
48

 
44

 
44

 
 
 
 
 
 
 
 
 
 
 
 
 
Total operating segments
 
3,214

 
2,877

 
2,562

 
82

 
73

 
71

 
 
 
 
 
 
 
 
 
 
 
 
 
Other business activities
 
(337
)
 
(313
)
 
(309
)
 
23

 
23

 
25

Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
(666
)
 
(625
)
 
(684
)
 
59

 
52

 
45

Purchase accounting adjustments
 
(162
)
 
(88
)
 
(99
)
 
143

 
88

 
84

Acquisition-related costs
 
(63
)
 
(10
)
 
(4
)
 
—

 
—

 
—

Certain significant items(c)
 
43

 
(25
)
 
(57
)
 
—

 
—

 
7

Other unallocated
 
(339
)
 
(291
)
 
(181
)
 
1

 
6

 
8

Total Earnings(d)
 
$
1,690

 
$
1,525

 
$
1,228

 
$
308

 
$
242

 
$
240


(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 $745 million in 2018, $660 million in 2017, and $632 million in 2016.
(c) 
For 2018, certain significant items primarily includes: (i) a net gain of $42 million related to the divestiture of certain agribusiness products within our International segment, (ii) a net gain of $18 million related to the relocation of a manufacturing site in China, (iii) charges related to our operational efficiency initiative and supply network strategy initiative of $9 million; and (iv) employee termination costs in Europe of $7 million.
For 2017, certain significant items primarily includes: (i) charges related to our operational efficiency initiative and supply network strategy initiative of $20 million; (ii) Zoetis stand-up costs of $3 million; (iii) employee termination costs in Europe of $4 million, (iv) income related to a commercial settlement in Mexico recorded in 2014 and 2016 of $5 million; and (iv) charges of $3 million associated with changes to our operating model.
For 2016, certain significant items primarily includes: (i) Zoetis stand-up costs of $23 million; (ii) charges related to our operational efficiency initiative and supply network strategy initiative of $10 million; (iii) charges related to a commercial settlement in Mexico of $14 million; and (iv) charges of $10 million associated with changes to our operating model.
(d) 
Defined as income before provision for taxes on income.
Long-lived Assets by Geographic Areas
Property, plant and equipment, less accumulated depreciation, by geographic region follow:
 
 
As of December 31,
(MILLIONS OF DOLLARS)
 
2018

 
2017

U.S.
 
$
1,188

 
$
1,047

International
 
470

 
388

Property, plant and equipment, less accumulated depreciation
 
$
1,658

 
$
1,435