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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Revenues $ 6,675 $ 6,260 $ 5,825
Costs and expenses:      
Cost of Sales [1] 2,057 1,992 1,911
Selling, general and administrative expenses [1] 1,726 1,638 1,484
Research and development expenses [1] 463 457 432
Amortization of intangible assets 160 155 117
Restructuring charges and certain acquisition-related costs 25 51 68
Interest expense, net of capitalized interest 231 223 206
Other (income)/deductions––net 17 (57) (83)
Income before provision for taxes on income [2] 1,996 1,801 1,690
Provision for taxes on income [3],[4] 360 301 266
Net income before allocation to noncontrolling interests 1,636 1,500 1,424
Less: Net loss attributable to noncontrolling interests (2) 0 (4)
Net income attributable to Zoetis $ 1,638 $ 1,500 $ 1,428
Earnings per share attributable to Zoetis Inc. stockholders:      
Basic (in dollars per share) $ 3.44 $ 3.14 $ 2.96
Diluted (in dollars per share) $ 3.42 $ 3.11 $ 2.93
Weighted-average common shares outstanding:      
Basic (in shares) 475,502 478,128 483,063
Diluted (in shares) 478,569 481,787 486,898
Dividends declared per common share $ 0.850 $ 0.692 $ 0.542
[1] Exclusive of amortization of intangible assets, except as disclosed in Note 3. Significant Accounting Policies—Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets.
[2] Defined as income before provision for taxes on income.
[3] In 2020, the Provision for taxes on income reflects the following:
the change in the jurisdictional mix of earnings, which includes the impact of the location of earnings from operations and repatriation costs. The jurisdictional mix of earnings can vary as a result of repatriation decisions, operating fluctuations in the normal course of business, the impact of non-deductible and non-taxable items, and the extent and location of other income and expense items, such as gains and losses on asset divestitures;
U.S. tax benefit related to U.S. Research and Development Tax Credit;
tax expense related to changes in uncertain tax positions (see D. Tax Contingencies);
a $29 million discrete tax benefit recorded in 2020 related to the excess tax benefits for share-based payments;
a $19 million net discrete tax benefit recorded in 2020 related to changes in various other tax items;
a $7 million discrete tax benefit recorded in 2020 related to the remeasurement of deferred taxes resulting from the integration of acquired businesses;
a $5 million discrete tax expense related to the changes in valuation allowances;
a $4 million discrete tax benefit recorded in 2020 related to a remeasurement of deferred tax assets and liabilities as a result of changes in statutory tax rates; and
a $4 million net discrete tax benefit recorded in 2020 related to the effective settlement of certain issues with tax authorities.
(b)     In 2019, the Provision for taxes on income reflects the following:
the change in the jurisdictional mix of earnings, which includes the impact of the location of earnings from operations and repatriation costs. The jurisdictional mix of earnings can vary as a result of repatriation decisions, operating fluctuations in the normal course of business, the impact of non-deductible and non-taxable items, and the extent and location of other income and expense items, such as gains and losses on asset divestitures;
U.S. tax benefit related to U.S. Research and Development Tax Credit;
tax expense related to changes in uncertain tax positions (see D. Tax Contingencies);
the impact of the GILTI tax, a new provision of the Tax Act, which became effective for the company in the first quarter of 2019;
a $20 million discrete tax benefit recorded in 2019 related to the excess tax benefits for share-based payments;
an $18 million discrete tax benefit related to the changes in valuation allowances;
a $14 million net discrete tax benefit recorded in the third quarter of 2019 due to a change in tax basis related to purchase accounting;
a $12 million net discrete tax benefit recorded in 2019 related to changes in various other tax items;
a $10 million net discrete tax benefit recorded in 2019 related to the effective settlement of certain issues with tax authorities; and
an $8 million discrete tax benefit recorded in 2019 related to a remeasurement of deferred tax assets and liabilities as a result of changes in statutory tax rates.
[4] In 2018, the Provision for taxes on income reflects the following:
the change in the jurisdictional mix of earnings, which includes the impact of the location of earnings from operations and repatriation costs. The jurisdictional mix of earnings can vary as a result of repatriation decisions, operating fluctuations in the normal course of business, the impact of non-deductible and non-taxable items, and the extent and location of other income and expense items, such as gains and losses on asset divestitures;
U.S. tax benefit related to U.S Research and Development Tax Credit;
tax expense related to the changes in valuation allowances and the resolution of other tax items;
tax expense related to changes in uncertain tax positions (see D. Tax Contingencies):
the reduction of the U.S. federal corporate income tax rate, from 35% to 21%, effective January 1, 2018, pursuant to the Tax Act;
a $45 million net tax benefit recorded in 2018 associated with a measurement-period adjustment to the one-time mandatory deemed repatriation tax on the company’s undistributed non-U.S. earnings pursuant to the Tax Act;
a $23 million discrete tax benefit recorded in 2018 related to the favorable impact of certain tax accounting method changes;
a $15 million discrete tax benefit recorded in 2018 related to the excess tax benefits for share-based payments; and
a $5 million discrete tax benefit recorded in 2018 related to a remeasurement of deferred tax assets and liabilities as a result of changes in statutory tax rates.