Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Selected Income Statement Information by Segment

Selected Statement of Income Information


	Earnings									Depreciation and Amortization(a)
	Year Ended December 31,									Year Ended December 31,
(MILLIONS OF DOLLARS)	2023			2022			2021			2023		2022		2021
U.S.
Revenue	$	4,555		$	4,313		$	4,042
Cost of Sales	900			803			788
Gross Profit	3,655			3,510			3,254
Gross Margin	80.2		%	81.4		%	80.5		%
Operating Expenses	786			765			681
Other (income)/deductions-net	6			(18)			4
U.S. Earnings	2,863			2,763			2,569			$	80	$	55	$	54
International
Revenue(b)	3,911			3,681			3,652
Cost of Sales	1,234			1,083			1,106
Gross Profit	2,677			2,598			2,546
Gross Margin	68.4		%	70.6		%	69.7		%
Operating Expenses	638			611			602
Other (income)/deductions-net	2			(3)			(4)
International Earnings	2,037			1,990			1,948			92		86		74
Total operating segments	4,900			4,753			4,517			172		141		128
Other business activities	(496)			(424)			(406)			33		28		28
Reconciling Items:
Corporate	(1,042)			(1,073)			(1,052)			128		132		115
Purchase accounting adjustments	(159)			(160)			(175)			153		159		175
Acquisition-related costs	(9)			(5)			(12)			—		—		—
Certain significant items(c)	33			(56)			(73)			—		—		—
Other unallocated	(291)			(379)			(311)			5		5		2
Total Earnings(d)	$	2,936		$	2,656		$	2,488		$	491	$	465	$	448

(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 $853 million in 2023, $774 million in 2022 and $814 million in 2021.

(c) For 2023, certain significant items primarily consisted of a gain on the sale of a majority interest in our pet insurance business of $101 million, partially offset by employee termination and exit costs related to organizational structure refinements of $43 million and certain asset impairment charges primarily related to our precision animal health and diagnostics businesses of $24 million.

For 2022, certain significant items primarily represents inventory and asset impairment charges related to customer relationships, developed technology rights and property, plant and equipment in our diagnostics, poultry, cattle and swine businesses and the consolidation of manufacturing sites in China of $47 million, as well as employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets of $4 million.

For 2021, certain significant items primarily included certain asset impairment charges of $46 million, as well as employee termination costs associated with our international operations and other costs associated with cost-reduction and productivity initiatives of $24 million.

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

Long-lived Assets by Geographic Areas

Property, plant and equipment, less accumulated depreciation, by geographic region follow:


	As of December 31,
(MILLIONS OF DOLLARS)	2023		2022
U.S.	$	2,092	$	1,820
International	1,112		933
Property, plant and equipment, less accumulated depreciation	$	3,204	$	2,753