Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Selected Income Statement Information by Segment


	Earnings						Depreciation and Amortization(a)
	Nine Months Ended						Nine Months Ended
	September 30,						September 30,
(MILLIONS OF DOLLARS)	2021			2020			2021		2020
U.S.
Revenue	$	3,002		$	2,605
Cost of sales	575			515
Gross profit	2,427			2,090
Gross margin	80.8		%	80.2		%
Operating expenses	484			418
Other (income)/deductions-net	2			4
U.S. Earnings	1,941			1,668			$	40	$	40

International
Revenue(b)	2,750			2,203
Cost of sales	833			697
Gross profit	1,917			1,506
Gross margin	69.7		%	68.4		%
Operating expenses	429			364
Other (income)/deductions-net	(4)			1
International Earnings	1,492			1,141			52		41

Total operating segments	3,433			2,809			92		81

Other business activities	(301)			(264)			20		19
Reconciling Items:
Corporate	(744)			(603)			84		75
Purchase accounting adjustments	(133)			(155)			133		155
Acquisition-related costs	(8)			(15)			—		—
Certain significant items(c)	(44)			(4)			—		—
Other unallocated	(221)			(192)			2		2
Total Earnings(d)	$	1,982		$	1,576		$	331	$	332

(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 $605 million and $517 million for the nine months ended September 30, 2021 and 2020, respectively.

(c) For the nine months ended September 30, 2021, primarily represents primarily represents asset impairment charges related to the consolidation of manufacturing sites in China and a dairy product termination, as well as employee termination costs associated with our international operations and other costs associated with cost-reduction and productivity initiatives.

For the nine months ended September 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 $18 million, partially offset by CEO transition-related costs of $14 million.

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