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Revenue
 3 Months Ended
Mar. 31, 2024
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.
In the first quarter of 2024, we modified the list of major product categories to include a category for pain and sedation products, which were previously included within other pharmaceutical products. The prior period presentation has been revised to reflect the new product category.
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 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;
•pain and sedation: products that alleviate pain, primarily associated with osteoarthritis and postoperative pain;
•other pharmaceutical: antiemetic, reproductive and oncology products;
•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)20242023
United States$1,163 $1,005 
Australia73 82 
Brazil101 84 
Canada61 50 
Chile31 39 
China76 102 
France41 34 
Germany51 45 
Italy28 26 
Japan37 39 
Mexico44 39 
Spain32 33 
United Kingdom77 68 
Other developed markets127 122 
Other emerging markets228 215 
2,170 1,983 
Contract manufacturing & human health20 17 
Total Revenue$2,190 $2,000 
Revenue by major species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20242023
U.S.
Companion animal$898 $721 
Livestock265 284 
1,163 1,005 
International
Companion animal552 504 
Livestock455 474 
1,007 978 
Total
Companion animal1,450 1,225 
Livestock720 758 
Contract manufacturing & human health20 17 
Total Revenue$2,190 $2,000 
Revenue by species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20242023
Companion Animal:
Dogs and Cats$1,384 $1,153 
Horses66 72 
1,450 1,225 
Livestock:
Cattle391 399 
Poultry139 139 
Swine127 142 
Fish45 49 
Sheep and other18 29 
720 758 
Contract manufacturing & human health20 17 
Total Revenue$2,190 $2,000 
Revenue by major product category
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20242023
Parasiticides$504 $432 
Vaccines452 429 
Dermatology363 292 
Anti-infectives281 288 
Pain and sedation194 116 
Other pharmaceutical156 178 
Animal health diagnostics82 93 
Medicated feed additives77 87 
Other non-pharmaceutical61 68 
2,170 1,983 
Contract manufacturing & human health20 17 
Total Revenue$2,190 $2,000 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2023 and 2022, and subsequently recognized as revenue during the first three months of 2024 and 2023 were $2 million and $1 million, respectively. Contract liabilities as of March 31, 2024 and December 31, 2023 were $13 million and $11 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of March 31, 2024 is not material.