Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020			2019			2018			2020		2019		2018
U.S.
Revenue	$	3,557		$	3,203		$	2,877
Cost of Sales	709			655			606
Gross Profit	2,848			2,548			2,271
Gross Margin	80.1		%	79.6		%	78.9		%
Operating Expenses	602			543			456
Other (income)/deductions	7			—			—
U.S. Earnings	2,239			2,005			1,815			$	55	$	44	$	34
International
Revenue(b)	3,035			2,972			2,890
Cost of Sales	971			925			929
Gross Profit	2,064			2,047			1,961
Gross Margin	68.0		%	68.9		%	67.9		%
Operating Expenses	510			560			559
Other (income)/deductions	7			—			3
International Earnings	1,547			1,487			1,399			56		53		48
Total operating segments	3,786			3,492			3,214			111		97		82
Other business activities	(372)			(348)			(337)			27		24		23
Reconciling Items:
Corporate	(820)			(707)			(666)			101		69		59
Purchase accounting adjustments	(198)			(234)			(162)			199		219		143
Acquisition-related costs	(18)			(43)			(63)			—		—		—
Certain significant items(c)	(43)			(67)			43			—		—		—
Other unallocated	(339)			(292)			(339)			3		3		1
Total Earnings(d)	$	1,996		$	1,801		$	1,690		$	441	$	412	$	308

(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 $718 million in 2020, $742 million in 2019, and $745 million in 2018.

(c)    For 2020, certain significant items primarily included certain asset impairment charges of $37 million and CEO transition-related costs of $16 million, partially offset by 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 $18 million.

For 2019, certain significant items primarily includes: (i) a change in estimate related to inventory costing of $69 million, (ii) CEO transition-related costs of $10 million, (iii) consulting fees, product transfer costs, employee termination costs and exit costs related to cost-reduction and productivity initiatives of $7 million, and (iv) income of $20 million resulting from a payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.

    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.         

(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)	2020		2019
U.S.	$	1,486	$	1,342
International	716		598
Property, plant and equipment, less accumulated depreciation	$	2,202	$	1,940