Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

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)	2022			2021			2022		2021
U.S.
Revenue	$	3,201		$	3,002
Cost of sales	587			575
Gross profit	2,614			2,427
Gross margin	81.7		%	80.8		%
Operating expenses	578			484
Other (income)/deductions-net	(6)			2
U.S. Earnings	2,042			1,941			$	40	$	40

International
Revenue(b)	2,780			2,750
Cost of sales	809			833
Gross profit	1,971			1,917
Gross margin	70.9		%	69.7		%
Operating expenses	456			429
Other (income)/deductions-net	(5)			(4)
International Earnings	1,520			1,492			62		52

Total operating segments	3,562			3,433			102		92

Other business activities	(315)			(301)			21		20
Reconciling Items:
Corporate	(771)			(744)			99		84
Purchase accounting adjustments	(120)			(133)			120		133
Acquisition-related costs	(4)			(8)			—		—
Certain significant items(c)	(10)			(44)			—		—
Other unallocated	(278)			(221)			4		2
Total Earnings(d)	$	2,064		$	1,982		$	346	$	331

(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 $590 million and $605 million for the nine months ended September 30, 2022 and 2021, respectively.

(c) For the nine months ended September 30, 2022, primarily represents inventory and asset impairment charges related to the consolidation of manufacturing sites in China, as well as employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets.

For the nine months ended September 30, 2021, 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.

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