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Revenue
 6 Months Ended
Jun. 30, 2022
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 or 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 all different brands or a particular product, 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 within 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;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive and oncology products;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•animal health diagnostics: blood, urine and fecal analysis testing capabilities, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services and blood glucose monitors; and
•medicated feed additives: products added to animal feed that provide medicines to livestock.
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 animal health.
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)2022202120222021
United States$1,091 $1,004 $2,111 $1,937 
Australia80 69 145 126 
Brazil86 75 163 149 
Canada67 67 116 113 
Chile34 34 75 68 
China96 94 199 217 
France31 32 63 67 
Germany46 50 89 88 
Italy32 32 62 57 
Japan41 50 100 97 
Mexico33 34 68 67 
Spain35 33 68 64 
United Kingdom51 43 115 112 
Other developed markets118 112 233 223 
Other emerging markets193 199 395 398 
2,034 1,928 4,002 3,783 
Contract manufacturing & human health18 20 36 36 
Total Revenue$2,052 $1,948 $4,038 $3,819 
Revenue by major species
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2022202120222021
U.S.
Companion animal$895 $794 $1,669 $1,452 
Livestock196 210 442 485 
1,091 1,004 2,111 1,937 
International
Companion animal471 435 960 853 
Livestock472 489 931 993 
943 924 1,891 1,846 
Total
Companion animal1,366 1,229 2,629 2,305 
Livestock668 699 1,373 1,478 
Contract manufacturing & human health18 20 36 36 
Total Revenue$2,052 $1,948 $4,038 $3,819 
Revenue by species
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2022202120222021
Companion Animal:
Dogs and Cats$1,303 $1,161 $2,502 $2,177 
Horses63 68 127 128 
1,366 1,229 2,629 2,305 
Livestock:
Cattle328 342 692 741 
Swine144 161 298 351 
Poultry121 134 245 265 
Fish47 39 91 76 
Sheep and other28 23 47 45 
668 699 1,373 1,478 
Contract manufacturing & human health18 20 36 36 
Total Revenue$2,052 $1,948 $4,038 $3,819 
Revenue by major product category
Three Months EndedSix Months Ended
June 30,June 30,
(MILLIONS OF DOLLARS)2022202120222021
Parasiticides$536 $460 $995 $850 
Vaccines446 417 851 830 
Dermatology319 285 630 533 
Other pharmaceuticals265 248 519 474 
Anti-infectives233 259 518 580 
Animal health diagnostics87 99 185 188 
Medicated feed additives85 103 183 215 
Other non-pharmaceuticals63 57 121 113 
2,034 1,928 4,002 3,783 
Contract manufacturing & human health18 20 36 36 
Total Revenue$2,052 $1,948 $4,038 $3,819 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2021 and 2020, and subsequently recognized as revenue during the first six months of 2022 and 2021 were approximately $2 million and $8 million, respectively. Contract liabilities as of June 30, 2022 and December 31, 2021 were approximately $14 million and $12 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of June 30, 2022 is not material.