Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Selected Income Statement Information by Segment


	Earnings						Depreciation and Amortization(a)
	Six Months Ended						Six Months Ended
	June 30,						June 30,
(MILLIONS OF DOLLARS)	2021			2020			2021		2020
U.S.
Revenue	$	1,937		$	1,609
Cost of sales	376			321
Gross profit	1,561			1,288
Gross margin	80.6		%	80.0		%
Operating expenses	301			261
Other (income)/deductions-net	2			4
U.S. Earnings	1,258			1,023			$	27	$	25

International
Revenue(b)	1,846			1,436
Cost of sales	560			452
Gross profit	1,286			984
Gross margin	69.7		%	68.5		%
Operating expenses	277			242
Other (income)/deductions-net	—			1
International Earnings	1,009			741			35		26

Total operating segments	2,267			1,764			62		51

Other business activities	(195)			(177)			14		13
Reconciling Items:
Corporate	(492)			(381)			55		48
Purchase accounting adjustments	(88)			(107)			88		107
Acquisition-related costs	(7)			(14)			—		—
Certain significant items(c)	(32)			5			—		—
Other unallocated	(130)			(111)			2		2
Total Earnings(d)	$	1,323		$	979		$	221	$	221

(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 $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively.

(c) For the six months ended June 30, 2021, primarily represents asset impairment charges related to the consolidation of manufacturing sites in China, employee termination costs related to cost-reduction and productivity initiatives and a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada.

For the six months ended June 30, 2020, primarily represents a net gain resulting from a cash payment 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.

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