Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 4. Revenue

Our sales rebates and discounts are based on specific agreements. The most significant of our sales rebate and discount programs in terms of accrual and payment amounts, percentage of our products that are sold via these programs, and level of judgment required in estimating the appropriate transaction price, relate to our programs in the U.S., France and the United Kingdom (U.K.). As of September 30, 2022 and 2021, the aggregate liability for sales rebates and discounts for these countries represented approximately 76% and 72%, respectively, of our total liability.

The following table summarizes the activity in our global sales rebates and discounts liability:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Beginning balance	$	284	$	303	$	316	$	295
Reduction of revenue	169		163		524		516
Payments	(143)		(146)		(525)		(489)
Foreign currency translation adjustments	(12)		(4)		(17)		(6)
Ending balance	$	298	$	316	$	298	$	316

Adjustments to revenue recognized as a result of changes in estimates for the judgments described above during the three and nine months ended September 30, 2022 and 2021 for product shipped in previous periods were not material.

Actual global product returns were approximately 1% and 2% of net revenue for the three months ended September 30, 2022 and 2021, respectively. Actual global product returns were approximately 1% of net revenue for the nine months ended September 30, 2022 and 2021.

Disaggregation of Revenue

The following table summarizes our revenue disaggregated by product category:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Pet Health	$	471	$	527	$	1,722	$	1,857
Farm Animal:
Cattle	227		250		722		735
Poultry	176		179		529		536
Swine	95		110		284		346
Aqua	47		44		132		111
Total Farm Animal	545		583		1,667		1,728
Contract Manufacturing (1)	12		21		41		67
Revenue	$	1,028	$	1,131	$	3,430	$	3,652

(1)Represents revenue from arrangements in which we manufacture products on behalf of a third party, including supply agreements associated with divestitures of products related to the acquisition of Bayer Animal Health.