Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021			2020			2019			2021		2020		2019
U.S.
Revenue	$	4,042		$	3,557		$	3,203
Cost of Sales	788			709			655
Gross Profit	3,254			2,848			2,548
Gross Margin	80.5		%	80.1		%	79.6		%
Operating Expenses	681			602			543
Other (income)/deductions-net	4			7			—
U.S. Earnings	2,569			2,239			2,005			$	54	$	55	$	44
International
Revenue(b)	3,652			3,035			2,972
Cost of Sales	1,106			971			925
Gross Profit	2,546			2,064			2,047
Gross Margin	69.7		%	68.0		%	68.9		%
Operating Expenses	602			510			560
Other (income)/deductions-net	(4)			7			—
International Earnings	1,948			1,547			1,487			74		56		53
Total operating segments	4,517			3,786			3,492			128		111		97
Other business activities	(406)			(372)			(348)			28		27		24
Reconciling Items:
Corporate	(1,052)			(879)			(755)			115		101		69
Purchase accounting adjustments	(175)			(198)			(234)			175		199		219
Acquisition-related costs	(12)			(18)			(43)			—		—		—
Certain significant items(c)	(73)			(43)			(67)			—		—		—
Other unallocated	(311)			(280)			(244)			2		3		3
Total Earnings(d)	$	2,488		$	1,996		$	1,801		$	448	$	441	$	412

(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 $814 million in 2021, $718 million in 2020 and $742 million in 2019.

(c) For 2021, certain significant items primarily included certain asset impairment charges of $46 million, as well as employee termination costs associated with our international operations and other costs associated with cost-reduction and productivity initiatives of $21 million.

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 a cash payment 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 cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.

(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)	2021		2020
U.S.	$	1,638	$	1,486
International	784		716
Property, plant and equipment, less accumulated depreciation	$	2,422	$	2,202