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Revenue
 9 Months Ended
Sep. 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;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive and oncology products;
•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 EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2022202120222021
United States$1,090 $1,065 $3,201 $3,002 
Australia80 70 225 196 
Brazil70 78 233 227 
Canada56 56 172 169 
Chile31 32 106 100 
China92 72 291 289 
France28 31 91 98 
Germany43 47 132 135 
Italy24 30 86 87 
Japan37 43 137 140 
Mexico33 31 101 98 
Spain29 33 97 97 
United Kingdom59 61 174 173 
Other developed markets121 127 354 350 
Other emerging markets186 193 581 591 
1,979 1,969 5,981 5,752 
Contract manufacturing & human health23 21 59 57 
Total Revenue$2,002 $1,990 $6,040 $5,809 
Revenue by major species
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2022202120222021
U.S.
Companion animal$819 $775 $2,488 $2,227 
Livestock271 290 713 775 
1,090 1,065 3,201 3,002 
International
Companion animal452 427 1,412 1,280 
Livestock437 477 1,368 1,470 
889 904 2,780 2,750 
Total
Companion animal1,271 1,202 3,900 3,507 
Livestock708 767 2,081 2,245 
Contract manufacturing & human health23 21 59 57 
Total Revenue$2,002 $1,990 $6,040 $5,809 
Revenue by species
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2022202120222021
Companion Animal:
Dogs and Cats$1,213 $1,142 $3,715 $3,319 
Horses58 60 185 188 
1,271 1,202 3,900 3,507 
Livestock:
Cattle371 403 1,063 1,144 
Swine129 153 427 504 
Poultry116 124 361 389 
Fish60 56 151 132 
Sheep and other32 31 79 76 
708 767 2,081 2,245 
Contract manufacturing & human health23 21 59 57 
Total Revenue$2,002 $1,990 $6,040 $5,809 
Revenue by major product category
Three Months EndedNine Months Ended
September 30,September 30,
(MILLIONS OF DOLLARS)2022202120222021
Parasiticides$422 $396 $1,417 $1,246 
Vaccines449 421 1,300 1,251 
Dermatology348 326 978 859 
Anti-infectives284 329 802 909 
Other pharmaceuticals252 243 771 717 
Animal health diagnostics83 95 268 283 
Medicated feed additives78 99 261 314 
Other non-pharmaceuticals63 60 184 173 
1,979 1,969 5,981 5,752 
Contract manufacturing & human health23 21 59 57 
Total Revenue$2,002 $1,990 $6,040 $5,809 
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 nine months of 2022 and 2021 were approximately $3 million and $4 million, respectively. Contract liabilities as of September 30, 2022 and December 31, 2021 were approximately $16 million and $12 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of September 30, 2022 is not material.