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Revenue
 6 Months Ended
Jun. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
4. Revenue
A. Revenue from Product Sales
We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers and e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network.
Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to a single product in all brands, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock across each of our major product categories.
Our major product categories are:
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•medicated feed additives: products added to animal feed that provide medicines to livestock; and
•animal health diagnostics: portable blood and urine analysis systems and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, blood glucose monitors and reference laboratory services.
Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision livestock farming.
Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.
Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply.
The following tables present our revenue disaggregated by geographic area, species, and major product category:
Revenue by geographic area
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2021202020212020
United States$1,004 $823 $1,937 $1,609 
Australia69 51 126 94 
Brazil75 56 149 119 
Canada67 54 113 94 
Chile34 25 68 48 
China94 66 217 132 
France32 24 67 53 
Germany50 40 88 74 
Italy32 14 57 35 
Japan50 53 97 94 
Mexico34 26 67 58 
Spain33 24 64 52 
United Kingdom43 26 112 81 
Other developed markets112 90 223 177 
Other emerging markets199 159 398 325 
1,928 1,531 3,783 3,045 
Contract manufacturing & human health20 17 36 37 
Total Revenue$1,948 $1,548 $3,819 $3,082 
Revenue by major species
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2021202020212020
U.S.
Companion animal$794 $594 $1,452 $1,093 
Livestock210 229 485 516 
1,004 823 1,937 1,609 
International
Companion animal435 288 853 586 
Livestock489 420 993 850 
924 708 1,846 1,436 
Contract manufacturing & human health20 17 36 37 
Total Revenue$1,948 $1,548 $3,819 $3,082 
Revenue by species
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2021202020212020
Companion Animal:
Dogs and Cats$1,161 $831 $2,177 $1,577 
Horses68 51 128 102 
1,229 882 2,305 1,679 
Livestock:
Cattle342 320 741 690 
Swine161 146 351 303 
Poultry134 135 265 283 
Fish39 30 76 56 
Sheep and other23 18 45 34 
699 649 1,478 1,366 
Contract manufacturing & human health20 17 36 37 
Total Revenue$1,948 $1,548 $3,819 $3,082 
Revenue by major product category
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2021202020212020
Parasiticides$460 $307 $850 $562 
Vaccines417 336 830 685 
Anti-infectives259 241 580 521 
Dermatology285 227 533 424 
Other pharmaceuticals248 192 474 389 
Medicated feed additives103 109 215 234 
Animal health diagnostics99 69 188 129 
Other non-pharmaceuticals57 50 113 101 
1,928 1,531 3,783 3,045 
Contract manufacturing & human health20 17 36 37 
Total Revenue$1,948 $1,548 $3,819 $3,082 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2020 and December 31, 2019, and subsequently recognized as revenue during the first six months of 2021 and 2020 were approximately $8 million and $5 million, respectively. Contract liabilities as of June 30, 2021 and December 31, 2020 were approximately $13 million.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of June 30, 2021 is not material.