Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Selected Income Statement Information by Segment

Selected Statement of Income Information


	Earnings						Depreciation and Amortization(a)
	Three Months Ended						Three Months Ended
	March 31,						March 31,
(MILLIONS OF DOLLARS)	2021			2020			2021		2020
U.S.
Revenue	$	933		$	786
Cost of sales	184			167
Gross profit	749			619
Gross margin	80.3		%	78.8		%
Operating expenses	131			125
Other (income)/deductions-net	1			1
U.S. Earnings	617			493			$	13	$	13

International
Revenue(b)	922			728
Cost of sales	282			224
Gross profit	640			504
Gross margin	69.4		%	69.2		%
Operating expenses	130			125
Other (income)/deductions-net	—			—
International Earnings	510			379			17		14

Total operating segments	1,127			872			30		27

Other business activities	(97)			(87)			7		6
Reconciling Items:
Corporate	(230)			(187)			27		22
Purchase accounting adjustments	(44)			(54)			44		54
Acquisition-related costs	(5)			(7)			—		—
Certain significant items(c)	(8)			11			—		—
Other unallocated	(56)			(51)			1		1
Total Earnings(d)	$	687		$	497		$	109	$	110

(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 $192 million and $170 million for the three months ended March 31, 2021 and 2020, respectively.

(c) For the three months ended March 31, 2021, primarily represents employee termination costs related to cost-reduction and productivity initiatives, as well as product transfer costs related to cost-reduction and productivity initiatives.

For the three months ended March 31, 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 $4 million.

(d) Defined as income before provision for taxes on income.