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Revenue
 3 Months Ended
Mar. 31, 2023
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 of 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;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•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;
•animal health diagnostics: testing and analysis of blood, urine and other animal samples and related products and services, 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, 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 Ended
March 31,
(MILLIONS OF DOLLARS)20232022
United States$1,005 $1,020 
Australia82 65 
Brazil84 77 
Canada50 49 
Chile39 41 
China102 103 
France34 32 
Germany45 43 
Italy26 30 
Japan39 59 
Mexico39 35 
Spain33 33 
United Kingdom68 64 
Other developed markets122 115 
Other emerging markets215 202 
1,983 1,968 
Contract manufacturing & human health17 18 
Total Revenue$2,000 $1,986 
Revenue by major species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20232022
U.S.
Companion animal$721 $774 
Livestock284 246 
1,005 1,020 
International
Companion animal504 489 
Livestock474 459 
978 948 
Total
Companion animal1,225 1,263 
Livestock758 705 
Contract manufacturing & human health17 18 
Total Revenue$2,000 $1,986 
Revenue by species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20232022
Companion Animal:
Dogs and Cats$1,153 $1,199 
Horses72 64 
1,225 1,263 
Livestock:
Cattle399 364 
Swine142 154 
Poultry139 124 
Fish49 44 
Sheep and other29 19 
758 705 
Contract manufacturing & human health17 18 
Total Revenue$2,000 $1,986 
Revenue by major product category
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20232022
Parasiticides$432 $459 
Vaccines429 405 
Other pharmaceuticals294 254 
Dermatology292 311 
Anti-infectives288 285 
Animal health diagnostics93 98 
Medicated feed additives87 98 
Other non-pharmaceuticals68 58 
1,983 1,968 
Contract manufacturing & human health17 18 
Total Revenue$2,000 $1,986 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2022 and 2021, and subsequently recognized as revenue during the first three months of 2023 and 2022 were $1 million and $2 million, respectively. Contract liabilities as of March 31, 2023 and December 31, 2022 were $14 million.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of March 31, 2023 is not material.