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.

•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;

•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

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.

Revenue by geographic area


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2024		2023		2024		2023
United States	$	1,308	$	1,165	$	2,471	$	2,170
Australia	83		82		156		164
Brazil	99		91		200		175
Canada	75		70		136		120
Chile	31		39		62		78
China	68		84		144		186
France	34		34		75		68
Germany	58		53		109		98
Italy	36		35		64		61
Japan	39		47		76		86
Mexico	46		38		90		77
Spain	33		31		65		64
United Kingdom	73		63		150		131
Other developed markets	138		125		265		247
Other emerging markets	222		203		450		418
	2,343		2,160		4,513		4,143
Contract manufacturing & human health	18		20		38		37
Total Revenue	$	2,361	$	2,180	$	4,551	$	4,180

Revenue by major species


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2024		2023		2024		2023
U.S.
Companion animal	$	1,080	$	959	$	1,978	$	1,680
Livestock	228		206		493		490
	1,308		1,165		2,471		2,170
International
Companion animal	569		530		1,121		1,034
Livestock	466		465		921		939
	1,035		995		2,042		1,973
Total
Companion animal	1,649		1,489		3,099		2,714
Livestock	694		671		1,414		1,429
Contract manufacturing & human health	18		20		38		37
Total Revenue	$	2,361	$	2,180	$	4,551	$	4,180

Revenue by species


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2024		2023		2024		2023
Companion Animal:
Dogs and Cats	$	1,581	$	1,424	$	2,965	$	2,577
Horses	68		65		134		137
	1,649		1,489		3,099		2,714
Livestock:
Cattle	350		329		741		728
Poultry	132		131		271		270
Swine	130		133		257		275
Fish	62		52		107		101
Sheep and other	20		26		38		55
	694		671		1,414		1,429
Contract manufacturing & human health	18		20		38		37
Total Revenue	$	2,361	$	2,180	$	4,551	$	4,180

Revenue by major product category


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(MILLIONS OF DOLLARS)	2024		2023		2024		2023
Parasiticides	$	600	$	568	$	1,104	$	1,000
Vaccines	445		430		897		859
Dermatology	418		359		781		651
Anti-infectives	264		244		545		532
Pain and sedation	221		145		415		261
Other pharmaceutical	153		170		309		348
Animal health diagnostics	103		96		185		189
Medicated feed additives	74		84		151		171
Other non-pharmaceutical	65		64		126		132
	2,343		2,160		4,513		4,143
Contract manufacturing & human health	18		20		38		37
Total Revenue	$	2,361	$	2,180	$	4,551	$	4,180

Contract liabilities reflected within Other current liabilities as of December 31, 2023 and 2022, and subsequently recognized as revenue during each of the first six months of 2024 and 2023 were $3 million. Contract liabilities as of June 30, 2024 and December 31, 2023 were $18 million and $11 million, respectively.