Geographic Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Geographic Information

Note 15. Geographic Information

We operate as a single operating segment engaged in the development, manufacturing, marketing and sales of animal health products worldwide for both food animals and companion animals. Consistent with our operational structure, our President and Chief Executive Officer (CEO), as the chief operating decision maker, makes resource allocation and business process decisions globally across our consolidated business. Strategic decisions are managed globally with global functional leaders responsible for determining significant cost/investments and with regional leaders responsible for overseeing the execution of the global strategy. Our global research and development organization is responsible for development of new products. Our manufacturing organization is responsible for the manufacturing and supply of products and for the optimization of our supply chain. Regional leaders are responsible for the distribution and sale of our products and for local direct costs. The business is also supported by global corporate staff functions. Managing and allocating resources at the global corporate level enables our CEO to assess the overall level of resources available and how to best deploy these resources across functions, product types, regional commercial organizations and research and development projects in line with our overarching long-term corporate-wide strategic goals, rather than on a product or geographic basis. Consistent with this decision-making process, our CEO uses consolidated, single-segment financial information for purposes of evaluating performance, allocating resources, setting incentive compensation targets, as well as forecasting future period financial results.

Our products include Rumensin™, Optaflexx™, Denagard™, Tylan™, Maxiban™ and other products for livestock and poultry, as well as Trifexis™, Interceptor™, Comfortis™, Galliprant and other products for companion animals.

We have a single customer that accounted for 10.4% and 12.5% of revenue for the three months ended June 30, 2020 and 2019, respectively, and for 12.1% and 12.2% of revenue for the six months ended June 30, 2020 and 2019, respectively. The product sales resulted in accounts receivable with this customer of $50.0 million and $90.5 million as of June 30, 2020 and December 31, 2019, respectively.

We are exposed to the risk of changes in social, political and economic conditions inherent in foreign operations and our results of operations and the value of our foreign assets are affected by fluctuations in foreign currency exchange rates.

Selected geographic area information was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Revenue—to unaffiliated customers (1)
United States	$	248.1	$	395.0	$	548.0	$	778.9
International	338.2		386.6		696.0		733.8
Revenue	$	586.3	$	781.6	$	1,244.0	$	1,512.7

	June 30, 2020		December 31, 2019
Long-lived assets (2)
United States	$	737.5	$	709.8
United Kingdom	186.9		192.6
Other foreign countries	262.4		244.7
Long-lived assets	$	1,186.8	$	1,147.1

⁽¹⁾Revenue is attributed to the countries based on the location of the customer.

⁽²⁾Long-lived assets consist of property and equipment, net, and certain noncurrent assets, including right-of-use assets.