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Segment Information (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of Selected Income Statement Information by Segment
Segment Assets
We manage our assets on a total company basis, not by operating segment. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment.
Selected Statement of Income Information
Earnings
Depreciation and Amortization(a)
Three Months EndedThree Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2020201920202019
U.S.
Revenue$823  $780  
Cost of sales154  158  
Gross profit669  622  
Gross margin81.3 %79.7 %
Operating expenses136  127  
Other (income)/deductions-net —  
U.S. Earnings530  495  $12  $ 
International
Revenue(b)
708  742  
Cost of sales228  218  
Gross profit480  524  
Gross margin67.8 %70.6 %
Operating expenses117  146  
Other (income)/deductions-net —  
International Earnings362  378  12  12  
Total operating segments892  873  24  21  
Other business activities
(90) (79)   
Reconciling Items:
Corporate
(179) (178) 26  16  
Purchase accounting adjustments
(53) (58) 53  55  
Acquisition-related costs
(7) (22) —  —  
Certain significant items(c)
(6) (3) —  —  
Other unallocated
(75) (78)  —  
Total Earnings(d)
$482  $455  $111  $98  
(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 $161 million and $184 million for the three months ended June 30, 2020 and June 30, 2019, respectively.
(c) For the three months ended June 30, 2020, primarily represents CEO transition-related costs of $5 million. For the three months ended June 30, 2019, primarily represents product transfer costs and consulting fees related to our supply network strategy. 
(d) Defined as income before provision for taxes on income.      
Earnings
Depreciation and Amortization(a)
Six Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2020201920202019
U.S.
Revenue$1,609  $1,498  
Cost of sales321  305  
Gross profit1,288  1,193  
    Gross margin80.1 %79.6 %
Operating expenses261  237  
Other (income)/deductions-net —  
U.S. Earnings1,023  956  $25  $19  
International
Revenue(b)
1,436  1,460  
Cost of sales452  428  
Gross profit984  1,032  
    Gross margin68.5 %70.7 %
Operating expenses242  278  
Other (income)/deductions-net —  
International Earnings741  754  26  25  
Total operating segments1,764  1,710  51  44  
Other business activities
(177) (159) 13  11  
Reconciling Items:
Corporate
(352) (340) 48  30  
Purchase accounting adjustments
(107) (124) 107  110  
Acquisition-related costs
(14) (27) —  —  
Certain significant items(c)
 (73) —  —  
Other unallocated
(140) (151)   
Total Earnings(d)
$979  $836  $221  $196  
(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 $331 million and $365 million for the six months ended June 30, 2020 and June 30, 2019, respectively.
(c) For the six months ended June 30, 2020, primarily represents a net gain resulting from net cash proceeds received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites of $17 million, partially offset by CEO transition-related costs of $9 million. For the six months ended June 30, 2019, primarily represents a change in estimate related to inventory costing of $68 million, and product transfer costs and consulting fees of $5 million related to our supply network strategy. 
(d) Defined as income before provision for taxes on income.