Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

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)	2023			2022			2023		2022
U.S.
Revenue	$	1,005		$	1,020
Cost of sales	203			185
Gross profit	802			835
Gross margin	79.8		%	81.9		%
Operating expenses	188			165
Other (income)/deductions-net	—			—
U.S. Earnings	614			670			$	19	$	13

International
Revenue(b)	978			948
Cost of sales	291			265
Gross profit	687			683
Gross margin	70.2		%	72.0		%
Operating expenses	151			145
Other (income)/deductions-net	1			—
International Earnings	535			538			21		18

Total operating segments	1,149			1,208			40		31

Other business activities	(114)			(98)			8		7
Reconciling Items:
Corporate	(208)			(259)			32		35
Purchase accounting adjustments	(42)			(40)			39		40
Acquisition-related costs	(1)			(2)			—		—
Certain significant items(c)	(22)			—			—		—
Other unallocated	(65)			(82)			1		1
Total Earnings(d)	$	697		$	727		$	120	$	114

(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 $204 million and $203 million for the three months ended March 31, 2023 and 2022, respectively.

(c) For the three months ended March 31, 2023, primarily consisted of employee termination costs related to organizational structure refinements.

For the three months ended March 31, 2022, primarily consisted of product transfer costs offset by other items.

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