Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Selected Income Statement Information by Segment

	Earnings						Depreciation and Amortization(a)
	Three Months Ended						Three Months Ended
	March 31,						March 31,
(MILLIONS OF DOLLARS)	2022			2021			2022		2021
U.S.
Revenue	$	1,020		$	933
Cost of sales	185			184
Gross profit	835			749
Gross margin	81.9		%	80.3		%
Operating expenses	165			131
Other (income)/deductions-net	—			1
U.S. Earnings	670			617			$	13	$	13
International
Revenue(b)	948			922
Cost of sales	265			282
Gross profit	683			640
Gross margin	72.0		%	69.4		%
Operating expenses	145			130
Other (income)/deductions-net	—			—
International Earnings	538			510			18		17
Total operating segments	1,208			1,127			31		30
Other business activities	(98)			(97)			7		7
Reconciling Items:
Corporate	(259)			(230)			35		27
Purchase accounting adjustments	(40)			(44)			40		44
Acquisition-related costs	(2)			(5)			—		—
Certain significant items(c)	—			(8)			—		—
Other unallocated	(82)			(56)			1		1
Total Earnings(d)	$	727		$	687		$	114	$	109

(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 $203 million and $192 million for the three months ended March 31, 2022 and 2021, respectively.

(c)    For the three months ended March 31, 2022, primarily represents product transfer costs offset by other items.

For the three months ended March 31, 2021, primarily represents product transfer costs and employee termination costs related to cost-reduction and productivity initiatives and the CEO transition.

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