| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
| For the fiscal year ended | ||||||||
or | ||||||||
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
| For the transition period from __________ to __________ | ||||||||
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||||||||
| incorporation or organization) | ||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(Registrant’s telephone number, including area code) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
| Page | ||||||||||||||
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| (MILLIONS OF DOLLARS) | Revenue | Companion Animal | Livestock | ||||||||
| United States | $4,313 | 77% | 23% | ||||||||
| Total International | $3,681 | 51% | 49% | ||||||||
| Australia | $289 | 46% | 54% | ||||||||
| Brazil | $330 | 36% | 64% | ||||||||
| Canada | $238 | 61% | 39% | ||||||||
| Chile | $141 | 13% | 87% | ||||||||
| China | $382 | 66% | 34% | ||||||||
| France | $126 | 60% | 40% | ||||||||
| Germany | $176 | 73% | 27% | ||||||||
| Italy | $111 | 72% | 28% | ||||||||
| Japan | $173 | 68% | 32% | ||||||||
| Mexico | $136 | 32% | 68% | ||||||||
| Spain | $118 | 57% | 43% | ||||||||
| United Kingdom | $235 | 73% | 27% | ||||||||
| Other Developed | $468 | 48% | 52% | ||||||||
| Other Emerging | $758 | 38% | 62% | ||||||||


| Product / product line | Description | Primary species | ||||||||||||
| Vaccines | ||||||||||||||
Vanguard® L4 (4-way Lepto) / Vanguard® line | Helps protect against leptospirosis caused by Leptospira canicola, L. grippotyphosa, L. icterohaemorrhagiae and L. pomona. Aids in preventing canine distemper caused by canine distemper virus; infectious canine hepatitis caused by canine adenovirus type 1; respiratory disease caused by canine adenovirus type 2; canine parainfluenza caused by canine parainfluenza virus; canine parvoviral enteritis caused by canine parvovirus; Lyme disease and subclinical arthritis associated with Borrelia burgdorferi, the causative agent of Lyme disease. Vanguard Rapid Resp is a group of three vaccines combating infections in dogs caused by Bordetella bronchiseptica, canine parainfluenza and canine adenovirus; canine influenza vaccines; and an oral vaccine for Bordatella bronchiseptica | Dogs | ||||||||||||
| Anti-infectives | ||||||||||||||
Clavamox® / Synulox® | A broad-spectrum antibiotic and the first potentiated penicillin approved for use in dogs and cats | Cats, dogs | ||||||||||||
Convenia® | Anti-infective for the treatment of common bacterial skin infections that provides a course of treatment in a single injection | Cats, dogs | ||||||||||||
| Parasiticides | ||||||||||||||
ProHeart® | Prevents heartworm infestation; also for treatment of existing larval and adult hookworm infections | Dogs | ||||||||||||
Revolution® / Revolution® Plus / Stronghold® line | An antiparasitic for protection against fleas, heartworm disease and ear mites in cats and dogs; sarcoptic mites and American dog tick in dogs and roundworms and hookworms for cats | Cats, dogs | ||||||||||||
Simparica®/ Simparica Trio® | A monthly chewable tablet for dogs to control fleas and ticks; Simparica Trio, also a monthly chewable tablet, is a triple combination parasiticide that delivers all-in-one protection from fleas and ticks, as well as heartworm disease, roundworms and hookworms | Dogs | ||||||||||||
| Other Pharmaceutical Products | ||||||||||||||
Cerenia® | A medication that prevents and treats acute vomiting in dogs, treats acute vomiting in cats and prevents vomiting due to motion sickness in dogs | Cats, dogs | ||||||||||||
Librela® | An injectable monthly antibody therapy to alleviate osteoarthritis pain in dogs | Dogs | ||||||||||||
Rimadyl® | For the relief of pain and inflammation associated with osteoarthritis and for the control of postoperative pain associated with soft tissue and orthopedic surgeries | Dogs | ||||||||||||
| Dermatology | ||||||||||||||
Apoquel® | A selective inhibitor of the Janus Kinase 1 enzyme that controls pruritus associated with allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age | Dogs | ||||||||||||
Cytopoint® | An injectable to help reduce the clinical signs such as itching of atopic dermatitis in dogs of any age | Dogs | ||||||||||||
| Animal Health Diagnostics | ||||||||||||||
VetScan® | A portfolio of benchtop and handheld diagnostic instruments, rapid tests and associated consumables | Cats, dogs | ||||||||||||
| Product / product line | Description | Primary species | ||||||||||||
| Vaccines | ||||||||||||||
Improvac® / Improvest® / Vivax® | Reduces boar taint, as an alternative to surgical castration and suppression of estrus in gilts | Swine | ||||||||||||
Rispoval® / Bovishield® line | Aids in preventing three key viruses involved with pneumonia in cattle (BRSV, PI3 virus and BVD), as well as other respiratory diseases, depending on formulation | Cattle | ||||||||||||
Suvaxyn® / Fostera® | Aids in preventing or controlling diseases associated with major pig pathogens such as porcine circovirus type 2 (PCV2), porcine reproductive and respiratory syndrome virus (PRRSv) and Mycoplasma hyopneumoniae (M. hyo), depending on formulation | Swine | ||||||||||||
| Anti-infectives | ||||||||||||||
| Ceftiofur injectable line | Broad-spectrum cephalosporin antibiotic active against gram-positive and gram-negative bacteria, including ß-lactamase-producing strains, with some formulations producing a single course of therapy in one injection | Cattle, sheep, swine | ||||||||||||
Draxxin® / Draxxin KP | Single-dose low-volume antibiotic for the treatment and prevention of bovine and swine respiratory disease, infectious bovine keratoconjunctivitis and bovine foot rot. This franchise also includes Draxxin KP/Draxxin Plus, an injectable for the treatment of bovine respiratory disease that combines the antimicrobial properties of Draxxin with the anti-inflammatory, analgesic and antipyretic properties of the non-steroidal Ketoprofen to rapidly reduce fever in a single dose | Cattle, sheep, swine | ||||||||||||
Spectramast® | Treatment of subclinical or clinical mastitis in dry or lactating dairy cattle, delivered via intramammary infusion; same active ingredient as the ceftiofur line | Cattle | ||||||||||||
| Parasiticides | ||||||||||||||
Dectomax® | Injectable or pour-on endectocide, characterized by extended duration of activity, for the treatment and control of internal and external parasite infections | Cattle, swine | ||||||||||||
| Medicated Feed Additives | ||||||||||||||
| Lincomycin line | Controls necrotic enteritis; treatment of dysentery (bloody scours), control of ileitis and treatment/reduction in severity of mycoplasmal pneumonia | Swine, poultry | ||||||||||||
| Site | Location | Site | Location | |||||||||||||||||
| Buellton | California, U.S. | Overhalla | Norway | |||||||||||||||||
| Campinas | Brazil | Rathdrum | Ireland | |||||||||||||||||
| Catania | Italy | Rutherford | Australia | |||||||||||||||||
| Charles City | Iowa, U.S. | Salisbury | Maryland, U.S. | |||||||||||||||||
| Chicago Heights | Illinois, U.S. | San Diego | California, U.S. | |||||||||||||||||
| Durham | North Carolina, U.S. | Suzhou (Bio) | China | |||||||||||||||||
| Eagle Grove | Iowa, U.S. | Suzhou (MFA) | China | |||||||||||||||||
| Farum | Denmark | Tallaght | Ireland | |||||||||||||||||
| Kalamazoo | Michigan, U.S. | Tullamore | Ireland | |||||||||||||||||
| Klofta | Norway | Union City | California, U.S. | |||||||||||||||||
| Lincoln | Nebraska, U.S. | Weibern | Austria | |||||||||||||||||
| Louvain-la-Neuve | Belgium | Wellington | New Zealand | |||||||||||||||||
| Medolla | Italy | White Hall | Illinois, U.S. | |||||||||||||||||
| Melbourne | Australia | Willow Island | West Virginia, U.S. | |||||||||||||||||
| Olot | Spain | |||||||||||||||||||
| Issuer Purchases of Equity Securities | ||||||||||||||
Total Number of Shares Purchased(a) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under Plans or Programs | |||||||||||
| October 1 - October 31, 2022 | 385,234 | $148.78 | 384,955 | $2,934,545,331 | ||||||||||
| November 1 - November 30, 2022 | 807,282 | $143.37 | 806,710 | $2,818,883,845 | ||||||||||
| December 1 - December 31, 2022 | 1,523,900 | $151.67 | 1,523,758 | $2,587,042,238 | ||||||||||
| Total | 2,716,416 | $148.80 | 2,715,423 | $2,587,042,238 | ||||||||||

| December 31, 2017 | December 31, 2018 | December 31, 2019 | December 31, 2020 | December 31, 2021 | December 31, 2022 | |||||||||||||||
| Zoetis Inc. | $100 | $119.45 | $185.99 | $233.91 | $346.80 | $209.79 | ||||||||||||||
| S&P 500 Index | $100 | $95.62 | $125.72 | $148.85 | $191.58 | $156.88 | ||||||||||||||
| S&P 500 Pharmaceuticals Index | $100 | $108.09 | $124.40 | $133.76 | $168.21 | $182.43 | ||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Revenue | $ | 8,080 | $ | 7,776 | $ | 6,675 | 4 | 16 | ||||||||||||||||||||||||
| Net income attributable to Zoetis | 2,114 | 2,037 | 1,638 | 4 | 24 | |||||||||||||||||||||||||||
Adjusted net income(a) | 2,297 | 2,240 | 1,844 | 3 | 21 | |||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Revenue | $ | 8,080 | $ | 7,776 | $ | 6,675 | 4 | 16 | ||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||
Cost of sales(a) | 2,454 | 2,303 | 2,057 | 7 | 12 | |||||||||||||||||||||||||||
| % of revenue | 30.4 | % | 29.6 | % | 30.8 | % | ||||||||||||||||||||||||||
Selling, general and administrative expenses(a) | 2,009 | 2,001 | 1,726 | 0 | 16 | |||||||||||||||||||||||||||
| % of revenue | 25 | % | 26 | % | 26 | % | ||||||||||||||||||||||||||
Research and development expenses(a) | 539 | 508 | 463 | 6 | 10 | |||||||||||||||||||||||||||
| % of revenue | 7 | % | 7 | % | 7 | % | ||||||||||||||||||||||||||
Amortization of intangible assets(a) | 150 | 161 | 160 | (7) | 1 | |||||||||||||||||||||||||||
| Restructuring charges and certain acquisition-related costs | 11 | 43 | 25 | (74) | 72 | |||||||||||||||||||||||||||
| Interest expense, net of capitalized interest | 221 | 224 | 231 | (1) | (3) | |||||||||||||||||||||||||||
Other (income)/deductions—net | 40 | 48 | 17 | (17) | * | |||||||||||||||||||||||||||
| Income before provision for taxes on income | 2,656 | 2,488 | 1,996 | 7 | 25 | |||||||||||||||||||||||||||
| % of revenue | 33 | % | 32 | % | 30 | % | ||||||||||||||||||||||||||
| Provision for taxes on income | 545 | 454 | 360 | 20 | 26 | |||||||||||||||||||||||||||
| Effective tax rate | 20.5 | % | 18.2 | % | 18.0 | % | ||||||||||||||||||||||||||
| Net income before allocation to noncontrolling interests | 2,111 | 2,034 | 1,636 | 4 | 24 | |||||||||||||||||||||||||||
| Less: Net loss attributable to noncontrolling interests | (3) | (3) | (2) | — | 50 | |||||||||||||||||||||||||||
| Net income attributable to Zoetis | $ | 2,114 | $ | 2,037 | $ | 1,638 | 4 | 24 | ||||||||||||||||||||||||
| % of revenue | 26 | % | 26 | % | 25 | % | ||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| U.S. | $ | 4,313 | $ | 4,042 | $ | 3,557 | 7 | 14 | ||||||||||||||||||||||||
| International | 3,681 | 3,652 | 3,035 | 1 | 20 | |||||||||||||||||||||||||||
| Total operating segments | 7,994 | 7,694 | 6,592 | 4 | 17 | |||||||||||||||||||||||||||
| Contract manufacturing & human health | 86 | 82 | 83 | 5 | (1) | |||||||||||||||||||||||||||
| Total Revenue | $ | 8,080 | $ | 7,776 | $ | 6,675 | 4 | 16 | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Companion animal | $ | 5,203 | $ | 4,689 | $ | 3,652 | 11 | 28 | ||||||||||||||||||||||||
| Livestock | 2,791 | 3,005 | 2,940 | (7) | 2 | |||||||||||||||||||||||||||
| Contract manufacturing & human health | 86 | 82 | 83 | 5 | (1) | |||||||||||||||||||||||||||
| Total Revenue | $ | 8,080 | $ | 7,776 | $ | 6,675 | 4 | 16 | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
Cost of sales | $ | 2,454 | $ | 2,303 | $ | 2,057 | 7 | 12 | ||||||||||||||||||||||||
| % of revenue | 30.4 | % | 29.6 | % | 30.8 | % | ||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 2,009 | $ | 2,001 | $ | 1,726 | 0 | 16 | ||||||||||||||||||||||||
| % of revenue | 25 | % | 26 | % | 26 | % | ||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
Research and development expenses | $ | 539 | $ | 508 | $ | 463 | 6 | 10 | ||||||||||||||||||||||||
| % of revenue | 7 | % | 7 | % | 7 | % | ||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Amortization of intangible assets | $ | 150 | $ | 161 | $ | 160 | (7) | 1 | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | $ | 11 | $ | 43 | $ | 25 | (74) | 72 | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Interest expense, net of capitalized interest | $ | 221 | $ | 224 | $ | 231 | (1) | (3) | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Other (income)/deductions—net | $ | 40 | $ | 48 | $ | 17 | (17) | * | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Provision for taxes on income | $ | 545 | $ | 454 | $ | 360 | 20 | 26 | ||||||||||||||||||||||||
| Effective tax rate | 20.5 | % | 18.2 | % | 18.0 | % | ||||||||||||||||||||||||||
| % Change | |||||||||||||||||||||||||||||||||||||||||||||||
| 22/21 | 21/20 | ||||||||||||||||||||||||||||||||||||||||||||||
| Related to | Related to | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Foreign Exchange | Foreign Exchange | |||||||||||||||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | Total | Operational | Total | Operational | ||||||||||||||||||||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||||||||||||||||||||||||||
| Companion animal | $ | 3,341 | $ | 2,990 | $ | 2,391 | 12 | — | 12 | 25 | — | 25 | |||||||||||||||||||||||||||||||||||
| Livestock | 972 | 1,052 | 1,166 | (8) | — | (8) | (10) | — | (10) | ||||||||||||||||||||||||||||||||||||||
| 4,313 | 4,042 | 3,557 | 7 | — | 7 | 14 | — | 14 | |||||||||||||||||||||||||||||||||||||||
| International | |||||||||||||||||||||||||||||||||||||||||||||||
| Companion animal | 1,862 | 1,699 | 1,261 | 10 | (9) | 19 | 35 | 5 | 30 | ||||||||||||||||||||||||||||||||||||||
| Livestock | 1,819 | 1,953 | 1,774 | (7) | (7) | — | 10 | 2 | 8 | ||||||||||||||||||||||||||||||||||||||
| 3,681 | 3,652 | 3,035 | 1 | (8) | 9 | 20 | 3 | 17 | |||||||||||||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Companion animal | 5,203 | 4,689 | 3,652 | 11 | (3) | 14 | 28 | 1 | 27 | ||||||||||||||||||||||||||||||||||||||
| Livestock | 2,791 | 3,005 | 2,940 | (7) | (5) | (2) | 2 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
| Contract manufacturing & human health | 86 | 82 | 83 | 5 | (2) | 7 | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||
| $ | 8,080 | $ | 7,776 | $ | 6,675 | 4 | (4) | 8 | 16 | 1 | 15 | ||||||||||||||||||||||||||||||||||||
| % Change | |||||||||||||||||||||||||||||||||||
| 22/21 | 21/20 | ||||||||||||||||||||||||||||||||||
| Related to | Related to | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Foreign Exchange | Foreign Exchange | |||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | Total | Operational | Total | Operational | ||||||||||||||||||||||||||||
| U.S. | $ | 2,763 | $ | 2,569 | $ | 2,239 | 8 | — | 8 | 15 | — | 15 | |||||||||||||||||||||||
| International | 1,990 | 1,948 | 1,547 | 2 | (10) | 12 | 26 | 5 | 21 | ||||||||||||||||||||||||||
| Total reportable segments | 4,753 | 4,517 | 3,786 | 5 | (5) | 10 | 19 | 2 | 17 | ||||||||||||||||||||||||||
| Other business activities | (424) | (406) | (372) | 4 | 9 | ||||||||||||||||||||||||||||||
| Reconciling Items: | |||||||||||||||||||||||||||||||||||
| Corporate | (1,073) | (1,052) | (879) | 2 | 20 | ||||||||||||||||||||||||||||||
| Purchase accounting adjustments | (160) | (175) | (198) | (9) | (12) | ||||||||||||||||||||||||||||||
| Acquisition-related costs | (5) | (12) | (18) | (58) | (33) | ||||||||||||||||||||||||||||||
| Certain significant items | (56) | (73) | (43) | (23) | 70 | ||||||||||||||||||||||||||||||
| Other unallocated | (379) | (311) | (280) | 22 | 11 | ||||||||||||||||||||||||||||||
| Income before income taxes | $ | 2,656 | $ | 2,488 | $ | 1,996 | 7 | 25 | |||||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| GAAP reported net income attributable to Zoetis | $ | 2,114 | $ | 2,037 | $ | 1,638 | 4 | 24 | ||||||||||||||||||||||||
| Purchase accounting adjustments—net of tax | 120 | 136 | 142 | (12) | (4) | |||||||||||||||||||||||||||
| Acquisition-related costs—net of tax | 4 | 10 | 19 | (60) | (47) | |||||||||||||||||||||||||||
| Certain significant items—net of tax | 59 | 57 | 45 | 4 | 27 | |||||||||||||||||||||||||||
Non-GAAP adjusted net income(a) | $ | 2,297 | $ | 2,240 | $ | 1,844 | 3 | 21 | ||||||||||||||||||||||||
| Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | 22/21 | 21/20 | ||||||||||||||||||||||||||||
Earnings per share—diluted(a): | ||||||||||||||||||||||||||||||||
| GAAP reported EPS attributable to Zoetis—diluted | $ | 4.49 | $ | 4.27 | $ | 3.42 | 5 | 25 | ||||||||||||||||||||||||
| Purchase accounting adjustments—net of tax | 0.26 | 0.29 | 0.30 | (10) | (3) | |||||||||||||||||||||||||||
| Acquisition-related costs—net of tax | 0.01 | 0.02 | 0.04 | (50) | (50) | |||||||||||||||||||||||||||
| Certain significant items—net of tax | 0.12 | 0.12 | 0.09 | — | 33 | |||||||||||||||||||||||||||
| Non-GAAP adjusted EPS—diluted | $ | 4.88 | $ | 4.70 | $ | 3.85 | 4 | 22 | ||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Interest expense, net of capitalized interest | $ | 221 | $ | 224 | $ | 231 | ||||||||||||||
| Interest income | (50) | (6) | (12) | |||||||||||||||||
| Income taxes | 583 | 511 | 413 | |||||||||||||||||
| Depreciation | 266 | 236 | 202 | |||||||||||||||||
| Amortization | 40 | 37 | 40 | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Purchase accounting adjustments: | ||||||||||||||||||||
| Amortization and depreciation | $ | 160 | $ | 175 | $ | 198 | ||||||||||||||
| Total purchase accounting adjustments—pre-tax | 160 | 175 | 198 | |||||||||||||||||
Income taxes(a) | 40 | 39 | 56 | |||||||||||||||||
| Total purchase accounting adjustments—net of tax | 120 | 136 | 142 | |||||||||||||||||
| Acquisition-related costs: | ||||||||||||||||||||
| Integration costs | 4 | 10 | 17 | |||||||||||||||||
| Transaction costs | 1 | — | — | |||||||||||||||||
| Restructuring costs | — | 2 | 1 | |||||||||||||||||
| Total acquisition-related costs—pre-tax | 5 | 12 | 18 | |||||||||||||||||
Income taxes(a) | 1 | 2 | (1) | |||||||||||||||||
| Total acquisition-related costs—net of tax | 4 | 10 | 19 | |||||||||||||||||
| Certain significant items: | ||||||||||||||||||||
Operational efficiency initiative(b) | — | — | (18) | |||||||||||||||||
Other restructuring charges and cost-reduction/productivity initiatives(c) | 8 | 24 | 11 | |||||||||||||||||
Certain asset impairment charges(d) | 47 | 46 | 37 | |||||||||||||||||
| Net loss on sale of assets | — | 3 | — | |||||||||||||||||
Other(e) | 1 | — | 13 | |||||||||||||||||
| Total certain significant items—pre-tax | 56 | 73 | 43 | |||||||||||||||||
Income taxes(a) | (3) | 16 | (2) | |||||||||||||||||
| Total certain significant items—net of tax | 59 | 57 | 45 | |||||||||||||||||
| Total purchase accounting adjustments, acquisition-related costs, and certain significant items—net of tax | $ | 183 | $ | 203 | $ | 206 | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Cost of sales: | ||||||||||||||||||||
| Purchase accounting adjustments | $ | 6 | $ | 6 | $ | 8 | ||||||||||||||
| Inventory write-offs | 4 | 2 | 15 | |||||||||||||||||
| Other | 4 | 6 | 4 | |||||||||||||||||
| Total Cost of sales | 14 | 14 | 27 | |||||||||||||||||
| Selling, general & administrative expenses: | ||||||||||||||||||||
| Purchase accounting adjustments | 29 | 30 | 54 | |||||||||||||||||
| Other | — | — | 13 | |||||||||||||||||
| Total Selling, general & administrative expenses | 29 | 30 | 67 | |||||||||||||||||
| Research & development expenses: | ||||||||||||||||||||
| Purchase accounting adjustments | 1 | 1 | 1 | |||||||||||||||||
| Total Research & development expenses | 1 | 1 | 1 | |||||||||||||||||
| Amortization of intangible assets: | ||||||||||||||||||||
| Purchase accounting adjustments | 124 | 138 | 135 | |||||||||||||||||
| Total Amortization of intangible assets | 124 | 138 | 135 | |||||||||||||||||
| Restructuring charges and certain acquisition-related costs: | ||||||||||||||||||||
| Integration costs | 4 | 10 | 17 | |||||||||||||||||
| Transaction costs | 1 | — | — | |||||||||||||||||
| Employee termination costs | 3 | 17 | 8 | |||||||||||||||||
| Asset impairments | 2 | 13 | — | |||||||||||||||||
| Exit costs | 1 | 3 | — | |||||||||||||||||
| Total Restructuring charges and certain acquisition-related costs | 11 | 43 | 25 | |||||||||||||||||
| Other (income)/deductions—net: | ||||||||||||||||||||
| Net loss/(gain) on sale of assets | — | 3 | (18) | |||||||||||||||||
| Asset impairments | 41 | 31 | 22 | |||||||||||||||||
| Other | 1 | — | — | |||||||||||||||||
| Total Other (income)/deductions—net | 42 | 34 | 4 | |||||||||||||||||
| Provision for taxes on income | 38 | 57 | 53 | |||||||||||||||||
| Total purchase accounting adjustments, acquisition-related costs, and certain significant items—net of tax | $ | 183 | $ | 203 | $ | 206 | ||||||||||||||
| Year Ended December 31, | $ Change | |||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 22/21 | 21/20 | |||||||||||||||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||||||||||||||||||
| Operating activities | $ | 1,912 | $ | 2,213 | $ | 2,126 | $ | (301) | $ | 87 | ||||||||||||||||||||||
| Investing activities | (883) | (458) | (572) | (425) | 114 | |||||||||||||||||||||||||||
| Financing activities | (904) | (1,862) | 123 | 958 | (1,985) | |||||||||||||||||||||||||||
| Effect of exchange-rate changes on cash and cash equivalents | (29) | (12) | (7) | (17) | (5) | |||||||||||||||||||||||||||
| Net increase/(decrease) in cash and cash equivalents | $ | 96 | $ | (119) | $ | 1,670 | $ | 215 | $ | (1,789) | ||||||||||||||||||||||
| December 31, | |||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | |||||||||
| Cash and cash equivalents | $ | 3,581 | $ | 3,485 | |||||||
Accounts receivable, net(a) | 1,215 | 1,133 | |||||||||
| Short-term borrowings | 2 | — | |||||||||
| Current portion of long-term debt | 1,350 | — | |||||||||
| Long-term debt | 6,552 | 6,592 | |||||||||
| Working capital | 4,339 | 5,133 | |||||||||
| Ratio of current assets to current liabilities | 2.37:1 | 3.86:1 | |||||||||
| Description | Principal Amount | Interest Rate | Terms | ||||||||
| 2015 Senior Notes due 2025 | $750 million | 4.500% | Interest due semi annually, not subject to amortization, aggregate principal due on November 13, 2025 | ||||||||
| 2022 Senior Notes due 2025 | $600 million | 5.400% | Interest due semi annually, not subject to amortization, aggregate principal due on November 14, 2025 | ||||||||
| 2017 Senior Notes due 2027 | $750 million | 3.000% | Interest due semi annually, not subject to amortization, aggregate principal due on September 12, 2027 | ||||||||
| 2018 Senior Notes due 2028 | $500 million | 3.900% | Interest due semi annually, not subject to amortization, aggregate principal due on August 20, 2028 | ||||||||
| 2020 Senior Notes due 2030 | $750 million | 2.000% | Interest due semi annually, not subject to amortization, aggregate principal due on May 15, 2030 | ||||||||
| 2022 Senior Notes due 2032 | $750 million | 5.600% | Interest due semi annually, not subject to amortization, aggregate principal due on November 16, 2032 | ||||||||
| 2013 Senior Notes due 2043 | $1,150 million | 4.700% | Interest due semi annually, not subject to amortization, aggregate principal due on February 1, 2043 | ||||||||
| 2017 Senior Notes due 2047 | $500 million | 3.950% | Interest due semi annually, not subject to amortization, aggregate principal due on September 12, 2047 | ||||||||
| 2018 Senior Notes due 2048 | $400 million | 4.450% | Interest due semi annually, not subject to amortization, aggregate principal due on August 20, 2048 | ||||||||
| 2020 Senior Notes due 2050 | $500 million | 3.000% | Interest due semi annually, not subject to amortization, aggregate principal due on May 15, 2050 | ||||||||
| Commercial Paper | Long-term Debt | Date of Last Action | ||||||||||||||||||||||||
| Name of Rating Agency | Rating | Rating | Outlook | |||||||||||||||||||||||
| Moody’s | P-2 | Baa1 | Stable | August 2017 | ||||||||||||||||||||||
| S&P | A-2 | BBB | Stable | December 2016 | ||||||||||||||||||||||
| Page | |||||
Audited Consolidated Financial Statements of Zoetis Inc. and Subsidiaries: | |||||
Reports of Independent Registered Public Accounting Firm | |||||
Consolidated Statements of Income for the Years Ended December 31, 2022, 2021 and 2020 | |||||
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020 | |||||
Consolidated Balance Sheets as of December 31, 2022 and 2021 | |||||
Consolidated Statements of Equity for the Years Ended December 31, 2022, 2021 and 2020 | |||||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020 | |||||
Notes to Consolidated Financial Statements | |||||
Schedule II—Valuation and Qualifying Accounts | |||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) | 2022 | 2021 | 2020 | |||||||||||||||||
| Revenue | $ | $ | $ | |||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
Cost of sales(a) | ||||||||||||||||||||
Selling, general and administrative expenses(a) | ||||||||||||||||||||
Research and development expenses(a) | ||||||||||||||||||||
| Amortization of intangible assets | ||||||||||||||||||||
| Restructuring charges and certain acquisition-related costs | ||||||||||||||||||||
| Interest expense, net of capitalized interest | ||||||||||||||||||||
| Other (income)/deductions––net | ||||||||||||||||||||
| Income before provision for taxes on income | ||||||||||||||||||||
| Provision for taxes on income | ||||||||||||||||||||
| Net income before allocation to noncontrolling interests | ||||||||||||||||||||
| Less: Net loss attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||
| Net income attributable to Zoetis Inc. | $ | $ | $ | |||||||||||||||||
| Earnings per share attributable to Zoetis Inc. stockholders: | ||||||||||||||||||||
| Basic | $ | $ | $ | |||||||||||||||||
| Diluted | $ | $ | $ | |||||||||||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||||||
| Basic | ||||||||||||||||||||
| Diluted | ||||||||||||||||||||
| Dividends declared per common share | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Net income before allocation to noncontrolling interests | $ | $ | $ | |||||||||||||||||
| Other comprehensive loss, net of tax and reclassification adjustments: | ||||||||||||||||||||
Unrealized gains/(losses) on derivatives for cash flow hedges, net of tax of $ | ( | |||||||||||||||||||
Unrealized gains/(losses) on derivatives for net investment hedges, net of tax of $ | ( | |||||||||||||||||||
Foreign currency translation adjustments, net | ( | ( | ||||||||||||||||||
Benefit plans: Actuarial gain, net of tax of $ | ||||||||||||||||||||
| Total other comprehensive loss, net of tax | ( | ( | ( | |||||||||||||||||
| Comprehensive income before allocation to noncontrolling interests | ||||||||||||||||||||
| Less: Comprehensive loss attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||
| Comprehensive income attributable to Zoetis Inc. | $ | $ | $ | |||||||||||||||||
| December 31, | December 31, | |||||||||||||
| (MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA) | 2022 | 2021 | ||||||||||||
| Assets | ||||||||||||||
Cash and cash equivalents(a) | $ | $ | ||||||||||||
Accounts receivable, less allowance for doubtful accounts of $ | ||||||||||||||
| Inventories | ||||||||||||||
| Other current assets | ||||||||||||||
| Total current assets | ||||||||||||||
Property, plant and equipment, less accumulated depreciation of $ | ||||||||||||||
| Operating lease right of use assets | ||||||||||||||
| Goodwill | ||||||||||||||
| Identifiable intangible assets, less accumulated amortization | ||||||||||||||
| Noncurrent deferred tax assets | ||||||||||||||
| Other noncurrent assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Short-term borrowings | $ | $ | ||||||||||||
| Current portion of long-term debt | ||||||||||||||
| Accounts payable | ||||||||||||||
| Dividends payable | ||||||||||||||
| Accrued expenses | ||||||||||||||
| Accrued compensation and related items | ||||||||||||||
| Income taxes payable | ||||||||||||||
| Other current liabilities | ||||||||||||||
| Total current liabilities | ||||||||||||||
| Long-term debt, net of discount and issuance costs | ||||||||||||||
| Noncurrent deferred tax liabilities | ||||||||||||||
| Operating lease liabilities | ||||||||||||||
| Other taxes payable | ||||||||||||||
| Other noncurrent liabilities | ||||||||||||||
| Total liabilities | ||||||||||||||
| Commitments and contingencies (Note 18) | ||||||||||||||
| Stockholders' equity: | ||||||||||||||
Common stock, $ | ||||||||||||||
Treasury stock, at cost, | ( | ( | ||||||||||||
| Additional paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||||||||
| Total Zoetis Inc. equity | ||||||||||||||
| Equity attributable to noncontrolling interests | ( | |||||||||||||
| Total equity | ||||||||||||||
| Total liabilities and equity | $ | $ | ||||||||||||
| Zoetis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional | Other | Attributable to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS, EXCEPT SHARE DATA) | Common Stock | Treasury Stock | Paid-in | Retained | Comprehensive | Noncontrolling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Interests | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2019 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income/(loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation of a noncontrolling interest(a) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards(b) | — | ( | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired(c) | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee benefit plan contribution from Pfizer Inc.(d) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2020 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income/(loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards(b) | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired(c) | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee benefit plan contribution from Pfizer Inc.(d) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2021 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income/(loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards(b) | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired(c) | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Employee benefit plan contribution from Pfizer Inc.(d) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2022 | $ | $ | ( | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Operating Activities | ||||||||||||||||||||
| Net income before allocation to noncontrolling interests | $ | $ | $ | |||||||||||||||||
| Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities: | ||||||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||
| Asset write-offs and asset impairments | ||||||||||||||||||||
| Net loss/(gain) on sales of assets | ( | |||||||||||||||||||
| Provision for losses on inventory | ||||||||||||||||||||
| Deferred taxes | ( | ( | ( | |||||||||||||||||
| Settlement of derivative contracts | ( | |||||||||||||||||||
| Employee benefit plan contribution from Pfizer Inc. | ||||||||||||||||||||
| Other non-cash adjustments | ( | |||||||||||||||||||
| Other changes in assets and liabilities, net of acquisitions and divestitures: | ||||||||||||||||||||
| Accounts receivable | ( | ( | ||||||||||||||||||
| Inventories | ( | ( | ( | |||||||||||||||||
| Other assets | ( | ( | ||||||||||||||||||
| Accounts payable | ( | ( | ||||||||||||||||||
| Other liabilities | ( | |||||||||||||||||||
| Other tax accounts, net | ( | |||||||||||||||||||
| Net cash provided by operating activities | ||||||||||||||||||||
| Investing Activities | ||||||||||||||||||||
| Capital expenditures | ( | ( | ( | |||||||||||||||||
| Acquisitions, net of cash acquired | ( | ( | ( | |||||||||||||||||
| Purchase of investments | ( | ( | ||||||||||||||||||
| Proceeds from/(payments of) derivative instrument activity, net | ( | |||||||||||||||||||
| Net proceeds from sale of assets | ||||||||||||||||||||
| Other investing activities | ( | |||||||||||||||||||
| Net cash used in investing activities | ( | ( | ( | |||||||||||||||||
| Financing Activities | ||||||||||||||||||||
| Increase/(decrease) in short-term borrowings, net | ( | |||||||||||||||||||
| Principal payments on long-term debt | ( | ( | ||||||||||||||||||
| Proceeds from issuance of long-term debt—senior notes, net of discount | ||||||||||||||||||||
| Payment of debt issuance costs | ( | ( | ||||||||||||||||||
| Payment of consideration related to previous acquisitions | ( | ( | ( | |||||||||||||||||
| Share-based compensation-related proceeds, net of taxes paid on withholding shares | ( | ( | ||||||||||||||||||
| Purchases of treasury stock | ( | ( | ( | |||||||||||||||||
| Cash dividends paid | ( | ( | ( | |||||||||||||||||
| Acquisition of a noncontrolling interest, net of cash acquired | ||||||||||||||||||||
| Net cash (used in)/provided by financing activities | ( | ( | ||||||||||||||||||
| Effect of exchange-rate changes on cash and cash equivalents | ( | ( | ( | |||||||||||||||||
| Net increase/(decrease) in cash and cash equivalents | ( | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | $ | |||||||||||||||||
| Supplemental cash flow information | ||||||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||
| Income taxes | $ | $ | $ | |||||||||||||||||
| Interest, net of capitalized interest | ||||||||||||||||||||
| Non-cash transactions: | ||||||||||||||||||||
| Capital expenditures | $ | $ | $ | |||||||||||||||||
| Dividends declared, not paid | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| United States | $ | $ | $ | |||||||||||||||||
| Australia | ||||||||||||||||||||
| Brazil | ||||||||||||||||||||
| Canada | ||||||||||||||||||||
| Chile | ||||||||||||||||||||
| China | ||||||||||||||||||||
| France | ||||||||||||||||||||
| Germany | ||||||||||||||||||||
| Italy | ||||||||||||||||||||
| Japan | ||||||||||||||||||||
| Mexico | ||||||||||||||||||||
| Spain | ||||||||||||||||||||
| United Kingdom | ||||||||||||||||||||
| Other developed markets | ||||||||||||||||||||
| Other emerging markets | ||||||||||||||||||||
| Contract manufacturing & human health | ||||||||||||||||||||
| Total Revenue | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| U.S. | ||||||||||||||||||||
| Companion animal | $ | $ | $ | |||||||||||||||||
| Livestock | ||||||||||||||||||||
| International | ||||||||||||||||||||
| Companion animal | ||||||||||||||||||||
| Livestock | ||||||||||||||||||||
| Total | ||||||||||||||||||||
| Companion animal | ||||||||||||||||||||
| Livestock | ||||||||||||||||||||
| Contract manufacturing & human health | ||||||||||||||||||||
| Total Revenue | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Companion Animal: | ||||||||||||||||||||
| Dogs and Cats | $ | $ | $ | |||||||||||||||||
| Horses | ||||||||||||||||||||
| Livestock: | ||||||||||||||||||||
| Cattle | ||||||||||||||||||||
| Swine | ||||||||||||||||||||
| Poultry | ||||||||||||||||||||
| Fish | ||||||||||||||||||||
| Sheep and other | ||||||||||||||||||||
| Contract manufacturing & human health | ||||||||||||||||||||
| Total Revenue | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Parasiticides | $ | $ | $ | |||||||||||||||||
| Vaccines | ||||||||||||||||||||
| Dermatology | ||||||||||||||||||||
| Anti-infectives | ||||||||||||||||||||
| Other pharmaceuticals | ||||||||||||||||||||
| Medicated feed additives | ||||||||||||||||||||
| Animal health diagnostics | ||||||||||||||||||||
| Other non-pharmaceuticals | ||||||||||||||||||||
| Contract manufacturing & human health | ||||||||||||||||||||
| Total Revenue | $ | $ | $ | |||||||||||||||||
| (MILLIONS OF DOLLARS) | Amounts | ||||
| Cash and cash equivalents | $ | ||||
| Accounts receivable | |||||
Inventories(a) | |||||
| Other current assets | |||||
Property, plant and equipment(b) | |||||
Identifiable intangible assets(c) | |||||
| Other noncurrent assets | |||||
| Accounts payable | |||||
| Other current liabilities | |||||
| Other noncurrent liabilities | |||||
| Total net assets acquired | |||||
Goodwill(d) | |||||
| Total consideration | $ | ||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Restructuring charges and certain acquisition-related costs: | ||||||||||||||||||||
Integration costs(a) | $ | $ | $ | |||||||||||||||||
Transaction costs(b) | ||||||||||||||||||||
Restructuring charges(c)(d): | ||||||||||||||||||||
| Employee termination costs | ||||||||||||||||||||
| Asset impairment charges | ||||||||||||||||||||
| Exit costs | ||||||||||||||||||||
Total Restructuring charges and certain acquisition-related costs | $ | $ | $ | |||||||||||||||||
| Employee | Asset | |||||||||||||||||||||||||
| Termination | Impairment | Exit | ||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | Costs | Charges | Costs | Accrual | ||||||||||||||||||||||
| Balance, December 31, 2019 | $ | $ | — | $ | $ | |||||||||||||||||||||
| Provision | ||||||||||||||||||||||||||
Utilization and other(a) | ( | — | ( | |||||||||||||||||||||||
| Balance, December 31, 2020 | $ | $ | — | $ | $ | |||||||||||||||||||||
| Provision | ||||||||||||||||||||||||||
| Non-cash activity | ( | ( | ||||||||||||||||||||||||
Utilization and other(a) | ( | — | ( | ( | ||||||||||||||||||||||
Balance, December 31, 2021(b) | $ | $ | — | $ | $ | |||||||||||||||||||||
| Provision | ||||||||||||||||||||||||||
| Non-cash activity | ( | ( | ||||||||||||||||||||||||
Utilization and other(a) | ( | — | ( | ( | ||||||||||||||||||||||
Balance, December 31, 2022(b)(c) | $ | $ | — | $ | $ | |||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Royalty-related income | $ | ( | $ | ( | $ | ( | ||||||||||||||
| Interest income | ( | ( | ( | |||||||||||||||||
Identifiable intangible asset impairment charges(a) | ||||||||||||||||||||
Net loss/(gain) on sale of assets(b) | ( | |||||||||||||||||||
| Impairment of an equity investment | ||||||||||||||||||||
| Other asset impairment charges | ||||||||||||||||||||
Foreign currency loss(c) | ||||||||||||||||||||
| Other, net | ( | |||||||||||||||||||
| Other (income)/deductions—net | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| United States | $ | $ | $ | |||||||||||||||||
| International | ||||||||||||||||||||
Income before provision for taxes on income | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| United States: | ||||||||||||||||||||
| Current income taxes: | ||||||||||||||||||||
| Federal | $ | $ | $ | |||||||||||||||||
| State and local | ||||||||||||||||||||
| Deferred income taxes: | ||||||||||||||||||||
| Federal | ( | ( | ( | |||||||||||||||||
| State and local | ( | ( | ( | |||||||||||||||||
Total U.S. tax provision | ||||||||||||||||||||
| International: | ||||||||||||||||||||
| Current income taxes | ||||||||||||||||||||
| Deferred income taxes | ( | ( | ||||||||||||||||||
| Total international tax provision | ||||||||||||||||||||
| Provision for taxes on income | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||||||||
| U.S. statutory income tax rate | % | % | % | |||||||||||||||||
State and local taxes, net of federal benefits | ||||||||||||||||||||
Unrecognized tax benefits and tax settlements and resolution of certain tax positions(a) | ||||||||||||||||||||
| Foreign Derived Intangible Income | ( | ( | ||||||||||||||||||
| U.S. Research and Development Tax Credit | ( | ( | ( | |||||||||||||||||
| Share-based payments | ( | ( | ( | |||||||||||||||||
Non-deductible / non-taxable items | ||||||||||||||||||||
| Taxation of non-U.S. operations | ( | ( | ( | |||||||||||||||||
| All other—net | ( | ( | ||||||||||||||||||
| Effective tax rate | % | % | % | |||||||||||||||||
| As of December 31, | ||||||||||||||
| 2022 | 2021 | |||||||||||||
(MILLIONS OF DOLLARS) | Assets (Liabilities) | |||||||||||||
| Prepaid/deferred items | $ | $ | ||||||||||||
| Inventories | ||||||||||||||
| Capitalized R&D for tax | ||||||||||||||
| Identifiable intangible assets | ( | ( | ||||||||||||
| Property, plant and equipment | ( | ( | ||||||||||||
| Employee benefits | ||||||||||||||
| Restructuring and other charges | ||||||||||||||
| Legal and product liability reserves | ||||||||||||||
| Net operating loss/credit carryforwards | ||||||||||||||
| Unremitted earnings | ( | ( | ||||||||||||
| All other | ||||||||||||||
| Subtotal | ( | |||||||||||||
| Valuation allowance | ( | ( | ||||||||||||
Net deferred tax asset/(liability)(a)(b) | $ | $ | ( | |||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Balance, January 1 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Increases based on tax positions taken during a prior period(a) | ( | ( | ( | |||||||||||||||||
Decreases based on tax positions taken during a prior period(a) | ||||||||||||||||||||
Increases based on tax positions taken during the current period(a) | ( | ( | ( | |||||||||||||||||
| Settlements | ||||||||||||||||||||
Lapse in statute of limitations(a) | ||||||||||||||||||||
Balance, December 31(b) | $ | ( | $ | ( | $ | ( | ||||||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| $ | $ | |||||||||||||
3.000% 2020 senior notes due 2050 | ||||||||||||||
| Unamortized debt discount / debt issuance costs | ( | ( | ||||||||||||
| Less current portion of long-term debt | ||||||||||||||
| Cumulative fair value adjustment for interest rate swap contracts | ( | |||||||||||||
| Long-term debt, net of discount and issuance costs | $ | $ | ||||||||||||
| After | ||||||||||||||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2023 | 2024 | 2025 | 2026 | 2027 | 2027 | Total | |||||||||||||||||||||||||||||||||||||
| Maturities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Interest payments | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Notional | ||||||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS) | 2022 | 2021 | ||||||||||||
| Derivatives not Designated as Hedging Instruments | ||||||||||||||
| Foreign currency forward-exchange contracts | $ | $ | ||||||||||||
| Derivatives Designated as Hedging Instruments | ||||||||||||||
| Foreign exchange derivative instruments (in foreign currency): | ||||||||||||||
| Euro | ||||||||||||||
| Danish krone | ||||||||||||||
| Swiss franc | ||||||||||||||
| Forward-starting interest rate swaps | $ | $ | ||||||||||||
| Fixed-to-floating interest rate swap contracts | $ | $ | ||||||||||||
| Fair Value of Derivatives | ||||||||||||||||||||
| As of December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | Balance Sheet Location | 2022 | 2021 | |||||||||||||||||
| Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
| Foreign currency forward-exchange contracts | Other current assets | $ | $ | |||||||||||||||||
| Foreign currency forward-exchange contracts | Other current liabilities | ( | ( | |||||||||||||||||
| Total derivatives not designated as hedging instruments | ||||||||||||||||||||
| Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
| Forward-starting interest rate swap contracts | Other non-current assets | $ | $ | |||||||||||||||||
| Forward-starting interest rate swap contracts | Other non-current liabilities | ( | ||||||||||||||||||
| Foreign exchange derivative instruments | Other current assets | |||||||||||||||||||
| Foreign exchange derivative instruments | Other non-current assets | |||||||||||||||||||
| Foreign exchange derivative instruments | Other current liabilities | ( | ( | |||||||||||||||||
| Foreign exchange derivative instruments | Other non-current liabilities | ( | ||||||||||||||||||
| Fixed-to-floating interest rate swap contracts | Other non-current assets | |||||||||||||||||||
| Fixed-to-float interest rate swap contracts | Other non-current liabilities | ( | ||||||||||||||||||
| Total derivatives designated as hedging instruments | ||||||||||||||||||||
| Total derivatives | $ | $ | ||||||||||||||||||
| Year Ended December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Foreign currency forward-exchange contracts | $ | ( | $ | ( | ||||||||||
| Year Ended December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Forward starting interest rate swap contracts | $ | ( | $ | |||||||||||
| Foreign exchange derivative instruments | $ | $ | ||||||||||||
| Year Ended December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Foreign exchange derivative instruments | $ | $ | ||||||||||||
| As of December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS, EXCEPT LEASE TERM AND DISCOUNT RATE AMOUNTS) | 2022 | 2021 | ||||||||||||||||||
| Supplemental Balance Sheet information for operating leases | ||||||||||||||||||||
| Operating lease right of use assets | $ | $ | ||||||||||||||||||
| Operating lease liabilities | ||||||||||||||||||||
| $ | $ | |||||||||||||||||||
| Operating lease liabilities - noncurrent | ||||||||||||||||||||
| Total operating lease liabilities | $ | $ | ||||||||||||||||||
| Weighted-average remaining lease term—operating leases (years) | ||||||||||||||||||||
| Weighted-average discount rate—operating leases | % | % | ||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Supplemental Income Statement information for operating leases | ||||||||||||||||||||
| Operating lease expense | $ | $ | $ | |||||||||||||||||
| Variable lease payments not included in the measurement of lease liabilities | ||||||||||||||||||||
| Short-term lease payments not included in the measurement of lease liabilities | ||||||||||||||||||||
| Supplemental Cash Flow information for operating leases | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | $ | $ | |||||||||||||||||
| Lease obligations obtained in exchange for right-of-use assets (non-cash) | ||||||||||||||||||||
| Total | Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| After | Lease | Imputed | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2023 | 2024 | 2025 | 2026 | 2027 | 2027 | Payments | Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Maturities | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Finished goods | $ | $ | ||||||||||||
| Work-in-process | ||||||||||||||
| Raw materials and supplies | ||||||||||||||
| Inventories | $ | $ | ||||||||||||
| Useful Lives | As of December 31, | |||||||||||||||||||
| (MILLIONS OF DOLLARS) | (Years) | 2022 | 2021 | |||||||||||||||||
| Land | — | $ | $ | |||||||||||||||||
| Buildings | 33 1/3 - | |||||||||||||||||||
| Machinery, equipment and fixtures | ||||||||||||||||||||
| Construction-in-progress | — | |||||||||||||||||||
| Less: Accumulated depreciation | ||||||||||||||||||||
Property, plant and equipment | $ | $ | ||||||||||||||||||
| (MILLIONS OF DOLLARS) | U.S. | International | Total | |||||||||||||||||
| Balance, December 31, 2020 | $ | $ | $ | |||||||||||||||||
| Adjustments | ( | |||||||||||||||||||
Other(b) | ( | ( | ||||||||||||||||||
| Balance, December 31, 2021 | $ | $ | $ | |||||||||||||||||
Additions(a) | ||||||||||||||||||||
Other(b) | ( | ( | ||||||||||||||||||
| Balance, December 31, 2022 | $ | $ | $ | |||||||||||||||||
| As of December 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Identifiable | Identifiable | |||||||||||||||||||||||||||||||||||||
| Gross | Intangible Assets, | Gross | Intangible Assets, | |||||||||||||||||||||||||||||||||||
| Carrying | Accumulated | Less Accumulated | Carrying | Accumulated | Less Accumulated | |||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | Amount | Amortization | Amortization | Amount | Amortization | Amortization | ||||||||||||||||||||||||||||||||
| Finite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
| Developed technology rights | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Brands and tradenames | ( | ( | ||||||||||||||||||||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||||||||||||||||||||
| Total finite-lived intangible assets | ( | ( | ||||||||||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
| Brands and tradenames | — | — | ||||||||||||||||||||||||||||||||||||
| In-process research and development | — | — | ||||||||||||||||||||||||||||||||||||
| Product rights | — | — | ||||||||||||||||||||||||||||||||||||
| Total indefinite-lived intangible assets | — | — | ||||||||||||||||||||||||||||||||||||
| Identifiable intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2023 | 2024 | 2025 | 2026 | 2027 | |||||||||||||||||||||||||||
| Amortization expense | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| As of and for the | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Change in benefit obligation: | ||||||||||||||
| Projected benefit obligation, beginning | $ | $ | ||||||||||||
| Service cost | ||||||||||||||
| Interest cost | ||||||||||||||
| Changes in actuarial assumptions and other | ( | ( | ||||||||||||
| Settlements and curtailments | ( | ( | ||||||||||||
| Benefits paid | ( | ( | ||||||||||||
| Adjustments for foreign currency translation | ( | ( | ||||||||||||
| Other––net | ( | ( | ||||||||||||
| Benefit obligation, ending | ||||||||||||||
| Change in plan assets: | ||||||||||||||
| Fair value of plan assets, beginning | ||||||||||||||
| Actual return on plan assets | ( | |||||||||||||
| Company contributions | ||||||||||||||
| Settlements and curtailments | ( | ( | ||||||||||||
| Benefits paid | ( | ( | ||||||||||||
| Adjustments for foreign currency translation | ( | ( | ||||||||||||
| Other––net | ( | ( | ||||||||||||
| Fair value of plan assets, ending | ||||||||||||||
Funded status—Projected benefit obligation in excess of plan assets at end of year(a) | $ | ( | $ | ( | ||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Pension plans with an accumulated benefit obligation in excess of plan assets: | ||||||||||||||
| Fair value of plan assets | $ | $ | ||||||||||||
| Accumulated benefit obligation | ||||||||||||||
| Pension plans with a projected benefit obligation in excess of plan assets: | ||||||||||||||
| Fair value of plan assets | ||||||||||||||
| Projected benefit obligation | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Service cost | $ | $ | $ | |||||||||||||||||
| Interest cost | ||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | |||||||||||||||||
| Amortization of net losses | ||||||||||||||||||||
| Net periodic benefit cost | $ | $ | $ | |||||||||||||||||
| As of December 31, | ||||||||||||||||||||
| (PERCENTAGES) | 2022 | 2021 | 2020 | |||||||||||||||||
| Weighted average assumptions used to determine benefit obligations: | ||||||||||||||||||||
| Discount rate | % | % | % | |||||||||||||||||
| Rate of compensation increase | % | % | % | |||||||||||||||||
| Cash balance credit interest rate | % | % | % | |||||||||||||||||
| Weighted average assumptions used to determine net benefit cost for the year ended December 31: | ||||||||||||||||||||
| Discount rate | % | % | % | |||||||||||||||||
| Expected return on plan assets | % | % | % | |||||||||||||||||
| Rate of compensation increase | % | % | % | |||||||||||||||||
| Cash balance credit interest rate | % | % | % | |||||||||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Equity securities: Equity commingled funds | ||||||||||||||
| Debt securities: Government bonds | ||||||||||||||
| Other investments | ||||||||||||||
Total(a) | $ | $ | ||||||||||||
| As of December 31, | ||||||||||||||||||||
| Target allocation | ||||||||||||||||||||
| percentage | Percentage of Plan Assets | |||||||||||||||||||
| (PERCENTAGES) | 2022 | 2022 | 2021 | |||||||||||||||||
| Cash and cash equivalents | % | % | ||||||||||||||||||
| Equity securities | % | % | ||||||||||||||||||
| Debt securities | % | % | ||||||||||||||||||
| Other investments | % | % | ||||||||||||||||||
| Total | % | % | ||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Stock options / stock appreciation rights | $ | $ | $ | |||||||||||||||||
| RSUs / DSUs | ||||||||||||||||||||
| PSUs | ||||||||||||||||||||
Share-based compensation expense—total(a) | $ | $ | $ | |||||||||||||||||
| Tax benefit for share-based compensation expense | ( | ( | ( | |||||||||||||||||
| Share-based compensation expense, net of tax | $ | $ | $ | |||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| 2022 | 2021 | 2020 | ||||||||||||||||||
Expected dividend yield(a) | % | % | % | |||||||||||||||||
Risk-free interest rate(b) | % | % | % | |||||||||||||||||
Expected stock price volatility(c) | % | % | % | |||||||||||||||||
Expected term(d) (years) | ||||||||||||||||||||
| Weighted-Average | ||||||||||||||||||||||||||
| Remaining | Aggregate | |||||||||||||||||||||||||
| Weighted-Average | Contractual Term | Intrinsic Value(a) | ||||||||||||||||||||||||
| Shares | Exercise Price | (Years) | (Millions) | |||||||||||||||||||||||
| Outstanding, December 31, 2021 | $ | |||||||||||||||||||||||||
| Granted | ||||||||||||||||||||||||||
| Exercised | ( | |||||||||||||||||||||||||
| Forfeited | ( | |||||||||||||||||||||||||
| Outstanding, December 31, 2022 | $ | $ | ||||||||||||||||||||||||
| Exercisable, December 31, 2022 | $ | $ | ||||||||||||||||||||||||
| Year Ended/As of December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS, EXCEPT PER STOCK OPTION AMOUNTS) | 2022 | 2021 | 2020 | |||||||||||||||||
| Weighted-average grant date fair value per stock option | $ | $ | $ | |||||||||||||||||
| Aggregate intrinsic value on exercise | ||||||||||||||||||||
| Cash received upon exercise | ||||||||||||||||||||
| Tax benefits realized related to exercise | ||||||||||||||||||||
| Weighted-Average | ||||||||||||||
| RSUs | Grant Date Fair Value | |||||||||||||
| Nonvested, December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Reinvested dividend equivalents | ||||||||||||||
Forfeited | ( | |||||||||||||
| Nonvested, December 31, 2022 | $ | |||||||||||||
| Weighted-Average | ||||||||||||||
| PSUs | Grant Date Fair Value | |||||||||||||
| Nonvested, December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Reinvested dividend equivalents | ||||||||||||||
Forfeited | ( | |||||||||||||
| Nonvested, December 31, 2022 | $ | |||||||||||||
Shares issued, December 31, 2022 | $ | |||||||||||||
| Currency Translation Adjustments | Benefit Plans | Accumulated Other | ||||||||||||||||||||||||||||||
| Cash Flow | Net Investment | Other Currency | Actuarial | Comprehensive | ||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | Hedges | Hedges | Translation Adj | (Losses)/Gains | Loss | |||||||||||||||||||||||||||
| Balance, December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
| Other comprehensive (loss)/gain, net of tax | ( | ( | ( | |||||||||||||||||||||||||||||
| Balance, December 31, 2020 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
| Other comprehensive gain/(loss), net of tax | ( | ( | ||||||||||||||||||||||||||||||
| Balance, December 31, 2021 | ( | ( | ( | |||||||||||||||||||||||||||||
| Other comprehensive gain/(loss), net of tax | ( | ( | ||||||||||||||||||||||||||||||
| Balance, December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) | 2022 | 2021 | 2020 | |||||||||||||||||
| Numerator | ||||||||||||||||||||
| Net income before allocation to noncontrolling interests | $ | $ | $ | |||||||||||||||||
| Less: net loss attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||
| Net income attributable to Zoetis Inc. | $ | $ | $ | |||||||||||||||||
| Denominator | ||||||||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||||||||
| Common stock equivalents: stock options, RSUs, DSUs and PSUs | ||||||||||||||||||||
| Weighted-average common and potential dilutive shares outstanding | ||||||||||||||||||||
| Earnings per share attributable to Zoetis Inc. stockholders—basic | $ | $ | $ | |||||||||||||||||
| Earnings per share attributable to Zoetis Inc. stockholders—diluted | $ | $ | $ | |||||||||||||||||
| Earnings | Depreciation and Amortization(a) | |||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||
| Revenue | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Cost of Sales | ||||||||||||||||||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||||||||||||||||||
| Gross Margin | % | % | % | |||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Other (income)/deductions-net | ( | |||||||||||||||||||||||||||||||||||||
| U.S. Earnings | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| International | ||||||||||||||||||||||||||||||||||||||
Revenue(b) | ||||||||||||||||||||||||||||||||||||||
| Cost of Sales | ||||||||||||||||||||||||||||||||||||||
| Gross Profit | ||||||||||||||||||||||||||||||||||||||
| Gross Margin | % | % | % | |||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||
| Other (income)/deductions-net | ( | ( | ||||||||||||||||||||||||||||||||||||
| International Earnings | ||||||||||||||||||||||||||||||||||||||
| Total operating segments | ||||||||||||||||||||||||||||||||||||||
Other business activities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Reconciling Items: | ||||||||||||||||||||||||||||||||||||||
Corporate | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Purchase accounting adjustments | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Acquisition-related costs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Certain significant items(c) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other unallocated | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total Earnings(d) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| As of December 31, | ||||||||||||||
| (MILLIONS OF DOLLARS) | 2022 | 2021 | ||||||||||||
| U.S. | $ | $ | ||||||||||||
| International | ||||||||||||||
| Property, plant and equipment, less accumulated depreciation | $ | $ | ||||||||||||
| Balance, | Balance, | |||||||||||||||||||||||||
| Beginning of | End of | |||||||||||||||||||||||||
| (MILLIONS OF DOLLARS) | Period | Additions | Deductions | Period | ||||||||||||||||||||||
| Year Ended December 31, 2022 | ||||||||||||||||||||||||||
| Allowance for doubtful accounts | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Year Ended December 31, 2021 | ||||||||||||||||||||||||||
| Allowance for doubtful accounts | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Year Ended December 31, 2020 | ||||||||||||||||||||||||||
| Allowance for doubtful accounts | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to Zoetis Inc.'s Current | ||||||||
| Report on Form 8-K filed on May 20, 2022 (File No. 001-35797)) | ||||||||
| By-laws of the Registrant, amended and restated as of December 8, 2022 (incorporated by reference to Exhibit 3.2 to Zoetis | ||||||||
| Inc.’s Current Report on Form 8-K filed on December 8, 2022 (File No. 001-35797)) | ||||||||
| Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Zoetis Inc.'s Annual Report on Form 10-K | ||||||||
| filed on February 15, 2022 (File No. 001-35797)) | ||||||||
Indenture, dated as of January 28, 2013, between Zoetis Inc. and Deutsche Bank Trust Company Americas, as trustee | ||||||||
(incorporated by reference to Zoetis Inc.'s registration statement on Form S-1 (File No. 333-183254)) | ||||||||
First Supplemental Indenture, dated as of January 28, 2013, between Zoetis Inc. and Deutsche Bank Trust Company | ||||||||
Americas, as trustee (incorporated by reference to Exhibit 4.3 of Zoetis Inc.'s registration statement on Form S-1 | ||||||||
(File No. 333-183254)) | ||||||||
| Second Supplemental Indenture, dated November 13, 2015, between Zoetis Inc. and Deutsche Bank Trust Company | ||||||||
| Americas, as trustee (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K filed on | ||||||||
| November 13, 2015 (File No. 001-35797)) | ||||||||
| Third Supplemental Indenture, dated September 12, 2017, between Zoetis Inc. and Deutsche Bank Trust Company Americas, | ||||||||
as trustee (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K filed on September 12, 2017 | ||||||||
(File No. 001-35797)) | ||||||||
Fourth Supplemental Indenture, dated August 20, 2018, between Zoetis Inc. and Deutsche Bank Trust Company Americas, | ||||||||
as trustee (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K filed on August 20, 2018 | ||||||||
(File No. 001-35797)) | ||||||||
| Fifth Supplemental Indenture, dated May 12, 2020, between Zoetis Inc. and Deutsche Bank Trust Company Americas, | ||||||||
| as trustee (incorporated by reference to Exhibit 4.2 to Zoetis Inc.'s Current Report on Form 8-K filed on May 12, 2020 | ||||||||
(File No. 001-35797)) | ||||||||
| Sixth Supplemental Indenture, dated November 16, 2022, between Zoetis Inc. and Deutsche Bank Trust Company Americas, | ||||||||
| as trustee (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K filed on November 16, 2022 | ||||||||
| (File No. 001-35797)) | ||||||||
Form of 3.250% Senior Notes due 2023 (incorporated by reference to Exhibit 4.3 of Zoetis Inc.'s registration statement on | ||||||||
Form S-1 (File No. 333-183254)) | ||||||||
Form of 4.500% Senior Notes due 2025 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on | ||||||||
Form 8-K filed on November 13, 2015 (File No. 001-35797)) | ||||||||
Form of 4.700% Senior Notes due 2043 (incorporated by reference to Exhibit 4.3 of Zoetis Inc.'s registration statement on | ||||||||
Form S-1 (File No. 333-183254)) | ||||||||
Form of 3.000% Senior Notes due 2027 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
filed on September 12, 2017 (File No. 001-35797)) | ||||||||
| Form of 3.950% Senior Notes due 2027 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
filed on September 12, 2017 (File No. 001-35797)) | ||||||||
Form of 3.900% Senior Notes due 2028 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
filed on August 20, 2018 (File No. 001-35797)) | ||||||||
Form of 4.450% Senior Notes due 2048 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
filed on August 20, 2018 (File No. 001-35797)) | ||||||||
| Form of 2.000% Senior Notes due 2030 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
| filed on May 12, 2020 (File No. 001-35797)) | ||||||||
| Form of 3.000% Senior Notes due 2050 (incorporated by reference to Exhibit 4.2 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
| filed on May 12, 2020 (File No. 001-35797)) | ||||||||
| Form of 5.400% Senior Notes due 2025 (incorporated by reference to Exhibit 4.3 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
| filed on November 16, 2022 (File No. 001-35797)) | ||||||||
| Form of 5.600% Senior Notes due 2032 (incorporated by reference to Exhibit 4.4 to Zoetis Inc.’s Current Report on Form 8-K | ||||||||
| filed on November 16, 2022 (File No. 001-35797)) | ||||||||
Description of the Registrant’s Securities † | ||||||||
Global Separation Agreement, dated February 6, 2013, by and between Zoetis Inc. and Pfizer Inc. (incorporated by reference to | ||||||||
| Exhibit 10.1 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on March 28, 2013 (File No. 001-35797)) | ||||||||
Tax Matters Agreement, dated February 6, 2013, by and between Zoetis Inc. and Pfizer Inc. (incorporated by reference to | ||||||||
| Exhibit 10.3 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on March 28, 2013 (File No. 001-35797)) | ||||||||
| Research and Development Collaboration and License Agreement, dated February 6, 2013, by and between Zoetis Inc. | ||||||||
| and Pfizer Inc. (incorporated by reference to Exhibit 10.4 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on | ||||||||
March 28, 2013 (File No. 001-35797)) | ||||||||
| Pfizer Inc. 2004 Stock Plan, as amended and restated (incorporated by reference to Exhibit 10.6 of Zoetis Inc.'s registration | ||||||||
| statement on Form S-1 (File No. 333-183254))* | ||||||||
| Patent and Know-How License Agreement (Zoetis as licensor), dated February 6, 2013, by and between Zoetis Inc. and | ||||||||
| Pfizer Inc. (incorporated by reference to Exhibit 10.8 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on | ||||||||
| March 28, 2013 (File No. 001-35797)) | ||||||||
| Patent and Know-How License Agreement (Pfizer as licensor), dated February 6, 2013, by and between Zoetis Inc. and | ||||||||
| Pfizer Inc. (incorporated by reference to Exhibit 10.9 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on | ||||||||
| March 28, 2013 (File No. 001-35797)) | ||||||||
| Trademark and Copyright License Agreement, dated February 6, 2013, by and between Zoetis Inc. and Pfizer Inc. | ||||||||
| (incorporated by reference to Exhibit 10.10 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on March 28, 2013 | ||||||||
| (File No. 001-35797)) | ||||||||
| Environmental Matters Agreement, dated February 6, 2013, by and between Zoetis Inc. and Pfizer Inc. (incorporated by | ||||||||
| reference to Exhibit 10.13 to Zoetis Inc.’s 2012 Annual Report on Form 10-K filed on March 28, 2013) (File No. 001-35797)) | ||||||||
| Zoetis Inc. 2013 Equity and Incentive Plan, as amended and restated as of May 19, 2022 (incorporated by reference to Exhibit | ||||||||
| 10.1 to Zoetis Inc.’s Quarterly Report on Form 10-Q filed on August 4, 2022 (File No. 001-35797))* | ||||||||
| Sale of Business Severance Plan (incorporated by reference to Exhibit 10.17 to Zoetis Inc.’s 2012 Annual Report on | ||||||||
| Form 10-K filed on March 28, 2013 (File No. 001-35797))* | ||||||||
| Revolving Credit Agreement, dated as of December 21, 2022, among Zoetis Inc., the lenders party thereto and JPMorgan | ||||||||
| Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 of Zoetis Inc.'s Current Report | ||||||||
| on Form 8-K filed on December 21, 2022 (File No. 001-35797)) | ||||||||
Form of Indemnification Agreement for directors and officers (incorporated by reference to Exhibit 10.19 of Zoetis Inc's | ||||||||
| registration statement on Form S-1 (File No. 333-183254)) | ||||||||
| Form of Restricted Stock Unit Award agreement (incorporated by reference to Exhibit 10.21 to Zoetis Inc.’s 2012 Annual | ||||||||
| Report on Form 10-K filed on March 28, 2013 (File No. 001-35797))* | ||||||||
| Form of Stock Option Award agreement (incorporated by reference to Exhibit 10.22 to Zoetis Inc.’s 2012 Annual Report | ||||||||
| on Form 10-K filed on March 28, 2013 (File No. 001-35797))* | ||||||||
| Form of Non-Employee Director Deferred Stock Unit Award agreement (incorporated by reference to Exhibit 10.23 | ||||||||
| on Form 10-K filed on March 28, 2013 (File No. 001-35797))* | ||||||||
| Form of Cash Award agreement (incorporated by reference to Exhibit 10.24 to Zoetis Inc.’s 2012 Annual Report on | ||||||||
| Form 10-K filed on March 28, 2013 (File No. 001-35797))* | ||||||||
| Form of Performance Restricted Stock Unit Award Agreement, effective as of February 27, 2015 (incorporated by | ||||||||
| reference to Exhibit 99.1 to Zoetis Inc.’s Current Report on Form 8-K filed on March 4, 2015 (File No. 001-35797))* | ||||||||
| Form of Restricted Stock Unit Award Agreement, effective as of February 27, 2015 (incorporated by reference to | ||||||||
| Exhibit 99.2 to Zoetis Inc.’s Current Report on Form 8-K filed on March 4, 2015 (File No. 001-35797))* | ||||||||
| Form of Stock Option Award Agreement, effective as of February 27, 2015 (incorporated by reference to Exhibit 99.3 | ||||||||
| to Zoetis Inc.’s Current Report on Form 8-K filed on March 4, 2015 (File No. 001-35797))* | ||||||||
| Form of Cash Award Agreement, effective as of February 27, 2015 (incorporated by reference to Exhibit 99.4 to | ||||||||
| Zoetis Inc.’s Current Report on Form 8-K filed on March 4, 2015 (File No. 001-35797))* | ||||||||
| Zoetis Amended and Restated Non-Employee Director Deferred Compensation Plan (incorporated by reference to | ||||||||
| Exhibit 10.1 to Zoetis Inc.’s Quarterly Report on Form 10-Q filed on November 1, 2018 (File No. 001-35797))* | ||||||||
| Zoetis Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Zoetis Inc.’s Quarterly Report on Form 10-Q | ||||||||
| filed on August 14, 2013 (File No. 001-35797))* | ||||||||
| Zoetis Supplemental Savings Plan, as amended and restated, effective September 15, 2014 (incorporated by reference to | ||||||||
| Exhibit 10.4 to Zoetis Inc.'s Quarterly Report on Form 10-Q filed on November 10, 2014 (File No. 001-35797))* | ||||||||
| Amendment No. 1 to Zoetis Supplemental Savings Plan effective December 21, 2020 (incorporated by reference to Exhibit 10.24 | ||||||||
| to Zoetis Inc.'s 2020 Annual Report on Form 10-K filed on February 16, 2021 (File No. 001-35797))* | ||||||||
| Zoetis Equity Deferral Plan, effective November 1, 2014 (incorporated by reference to Exhibit 10.5 to Zoetis Inc.’s | ||||||||
| Quarterly Report on Form 10-Q filed on November 10, 2014 (File No. 001-35797))* | ||||||||
| Amendment No. 1 to Zoetis Equity Deferral Plan effective December 21, 2020 (incorporated by reference to Exhibit 10.26 | ||||||||
| to Zoetis Inc.'s 2020 Annual Report on Form 10-K filed on February 16, 2021 (File No. 001-35797))* | ||||||||
| Letter Agreement dated as of October 2, 2019, by and between Juan Ramón Alaix and Zoetis Inc. (incorporated by | ||||||||
| reference to Exhibit 10.1 to Zoetis Inc.'s Current Report on Form 8-K filed on October 3, 2019 (File No. 001-35797)) | ||||||||
| Letter Agreement dated as of December 9, 2019, by and between Clinton A. Lewis, Jr. and Zoetis Inc. (incorporated by | ||||||||
| reference to Exhibit 10.1 to Zoetis Inc.'s Current Report on Form 8-K filed on December 12, 2019 (File No. 001-35797)) | ||||||||
| Offer Letter, dated as of May 6, 2021, by and between Wetteny Joseph and Zoetis Inc. (incorporated by reference to Exhibit 10.1 | ||||||||
| to Zoetis Inc.'s Current Report on Form 8-K filed on May 11, 2021 (File No. 001-35797))* | ||||||||
| Amendment No. 2 to Zoetis Supplemental Savings Plan effective May 15, 2021 (incorporated by reference to Exhibit 10.1 to | ||||||||
| Zoetis Inc.'s Quarterly Report on Form 10-Q filed on August 5, 2021 (File No. 001-35797))* | ||||||||
| Form of Restricted Stock Unit Award Agreement, effective as of July 27, 2022 (incorporated by reference to Exhibit 10.1 to | ||||||||
| Zoetis Inc.’s Quarterly Report on Form 10-Q filed on November 3, 2022 (File No 001-35797))* | ||||||||
| Form of Stock Option Award Agreement, effective as of July 27, 2022 (incorporated by reference to Exhibit 10.2 to Zoetis Inc.’s | ||||||||
| Quarterly Report on Form 10-Q filed on November 3, 2022 (File No 001-35797))* | ||||||||
| Form of Performance Restricted Stock Unit Award Agreement, effective as of July 27, 2022 (incorporated by reference to Exhibit | ||||||||
| 10.3 to Zoetis Inc.’s Quarterly Report on Form 10-Q filed on November 3, 2022 (File No 001-35797))* | ||||||||
| Form of Cash Award Agreement, effective as of July 27, 2022 (incorporated by reference to Exhibit 10.1 to Zoetis Inc.’s | ||||||||
| Quarterly Report on Form 10-Q filed on November 3, 2022 (File No 001-35797))* | ||||||||
| Form of Non-Employee Director Restricted Stock Unit Award Agreement, effective as of July 27, 2022 (incorporated by | ||||||||
| reference to Exhibit 10.5 to Zoetis Inc.’s Quarterly Report on Form 10-Q filed on November 3, 2022 (File No 001-35797))* | ||||||||
| Form of Restricted Stock Unit Award Agreement, effective as of December 8, 2022* | ||||||||
| Form of Stock Option Award Agreement, effective as of December 8, 2022* | ||||||||
| Form of Performance Restricted Stock Unit Award Agreement, effective as of December 8, 2022* | ||||||||
| Subsidiaries of the Registrant † | ||||||||
| Consent of KPMG LLP † | ||||||||
| Power of Attorney (included as part of signature page) † | ||||||||
| Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 † | ||||||||
| Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 † | ||||||||
| Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the | ||||||||
| Sarbanes-Oxley Act of 2002 †† | ||||||||
| Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the | ||||||||
| Sarbanes-Oxley Act of 2002 †† | ||||||||
| EX-101.INS | Inline XBRL INSTANCE DOCUMENT | |||||||
| EX-101.SCH | Inline XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT | |||||||
| EX-101.CAL | Inline XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT | |||||||
| EX-101.LAB | Inline XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT | |||||||
| EX-101.PRE | Inline XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT | |||||||
| EX-101.DEF | Inline XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT | |||||||
| EX-104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
| † | Filed herewith | ||||
| †† | Furnished herewith | ||||
| * | Management contracts or compensatory plans or arrangements | ||||
| Zoetis Inc. | ||||||||||||||
Dated: February 14, 2023 | By: | /S/ KRISTIN C. PECK | ||||||||||||
Kristin C. Peck Chief Executive Officer and Director | ||||||||||||||
Name | Title | Date | ||||||||||||
/S/ KRISTIN C. PECK | Chief Executive Officer and Director | February 14, 2023 | ||||||||||||
Kristin C. Peck | (Principal Executive Officer) | |||||||||||||
| /S/ WETTENY JOSEPH | Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | February 14, 2023 | ||||||||||||
Wetteny Joseph | ||||||||||||||
| /S/ MICHAEL B. MCCALLISTER | Chairman and Director | February 14, 2023 | ||||||||||||
| Michael B. McCallister | ||||||||||||||
| /S/ PAUL M. BISARO | Director | February 14, 2023 | ||||||||||||
| Paul M. Bisaro | ||||||||||||||
| /S/ VANESSA BROADHURST | Director | February 14, 2023 | ||||||||||||
| Vanessa Broadhurst | ||||||||||||||
| /S/ FRANK A. D'AMELIO | Director | February 14, 2023 | ||||||||||||
Frank A. D’Amelio | ||||||||||||||
| /S/ SANJAY KHOSLA | Director | February 14, 2023 | ||||||||||||
Sanjay Khosla | ||||||||||||||
| /S/ ANTOINETTE R. LEATHERBERRY | Director | February 14, 2023 | ||||||||||||
| Antoinette R. Leatherberry | ||||||||||||||
| /S/ GREGORY NORDEN | Director | February 14, 2023 | ||||||||||||
Gregory Norden | ||||||||||||||
| /S/ LOUISE M. PARENT | Director | February 14, 2023 | ||||||||||||
Louise M. Parent | ||||||||||||||
| /S/ WILLIE M. REED | Director | February 14, 2023 | ||||||||||||
| Willie M. Reed | ||||||||||||||
| /S/ LINDA RHODES | Director | February 14, 2023 | ||||||||||||
| Linda Rhodes | ||||||||||||||
| /S/ ROBERT W. SCULLY | Director | February 14, 2023 | ||||||||||||
| Robert W. Scully | ||||||||||||||
4142-5940-9707.2 | ||
| Upon Achievement of this Relative TSR Percentile: | Applicable Vesting Percentage: | ||||
Below 25th percentile | 0% | ||||
25th percentile | 50% | ||||
50th percentile | 100% | ||||
75th percentile or above | 200% | ||||
| SUBSIDIARY NAME | JURISDICTION OF INCORPORATION / FORMATION | |||||||
| Abaxis Asia Limited | Hong Kong | |||||||
| Abaxis Europe GmbH | Germany | |||||||
| Abaxis South East Europe d. o.o. | Serbia | |||||||
| Abaxis, Inc. | United States | |||||||
| Alpharma (Bermuda), LLC | United States | |||||||
| Alpharma (Luxembourg) S.A.R.L. y Compania Limitada | Chile | |||||||
| Alpharma Animal Health (Hong Kong) Co. Limited | Hong Kong | |||||||
| Alpharma Animal Health Company | United States | |||||||
| Alpharma Euro Holdings, LLC | United States | |||||||
| Alpharma Holdings (Barbados) SRL | Barbados | |||||||
| Alpharma, LLC | United States | |||||||
| Basepaws Inc | United States | |||||||
| Continental Farmaceutica SPRL | Belgium | |||||||
| Cross Vetpharm Group Limited | Ireland | |||||||
| Embrex LLC | United States | |||||||
| Fish Vet Group Limited | United Kingdom | |||||||
| Jilin Zoetis Guoyuan Animal Health Co., Ltd. | China | |||||||
| Jurox (Canada) Inc. | Canada | |||||||
| Jurox (Ireland) Limited | Ireland | |||||||
| Jurox (UK) Private Limited Company | United Kingdom | |||||||
| Jurox Holdings Pty Ltd | Australia | |||||||
| Jurox Inc. | United States | |||||||
| Jurox New Zealand Limited | New Zealand | |||||||
| Jurox Pty Ltd | Australia | |||||||
| Mikjan Corporation | United States | |||||||
| NewMetrica (Research) Limited | United Kingdom | |||||||
| NewMetrica (UK) Limited | United Kingdom | |||||||
| NewMetrica Limited | United Kingdom | |||||||
| Nexvet Australia Pty Ltd | Australia | |||||||
| PAH 7V6 Holding Limited | Hong Kong | |||||||
| PAH CHHK Holding B.V. | Netherlands | |||||||
| PAH India Holdco LLC | United States | |||||||
| PAH India Holding 1 B.V. | Netherlands | |||||||
| PAH Netherlands 2 B.V. | Netherlands | |||||||
| PAH Oceania B.V. | Netherlands | |||||||
| PAH Spain, S.L. | Spain | |||||||
| Performance Livestock Analytics, Inc. | United States | |||||||
| Pharmaq Analytiq AS | Norway | |||||||
| Pharmaq Analytiq Limited | United Kingdom | |||||||
| Pharmaq Analytiq SpA | Chile | |||||||
| Pharmaq AS | Norway | |||||||
| Pharmaq AS Chile Limitada | Chile | |||||||
| Pharmaq AS Service SpA | Chile | |||||||
| Pharmaq Fishteq AS | Norway | |||||||
| Pharmaq Fishteq SpA | Chile | |||||||
| Pharmaq Ltd | United Kingdom | |||||||
| Pharmaq Spain Aqua SL | Spain | |||||||
| Pharmaq Veterinar Ecza Deposu ve su Urunleri Ticaret Ltd Ski | Turkey | |||||||
| SUBSIDIARY NAME | JURISDICTION OF INCORPORATION / FORMATION | |||||||
| Pharmaq Vietnam Company Limited | Vietnam | |||||||
| Platinum Performance, Inc. | United States | |||||||
| PT Zoetis Animalhealth Indonesia | Indonesia | |||||||
| Pumpkin Holdings Inc. | United States | |||||||
| Pumpkin Insurance Services Inc. | United States | |||||||
| Smartbow GmbH | Austria | |||||||
| Synbiotics LLC | United States | |||||||
| Virtual Recall Limited | United Kingdom | |||||||
| Virtual Recall Pty Ltd | Australia | |||||||
| Zoetis (Thailand) Limited | Thailand | |||||||
| Zoetis Animal Health ApS | Denmark | |||||||
| Zoetis Argentina S.R.L. | Argentina | |||||||
| Zoetis Australia Pty Ltd | Australia | |||||||
| Zoetis Australia Research & Manufacturing Pty Ltd | Australia | |||||||
| Zoetis B.V. | Netherlands | |||||||
| Zoetis Belgium S.A. | Belgium | |||||||
| Zoetis Biopharmaceutical Co., Ltd | China | |||||||
| Zoetis Broomhill IP Limited | Ireland | |||||||
| Zoetis Broomhill Property Limited | Ireland | |||||||
| Zoetis Canada Inc. | Canada | |||||||
| Zoetis Česká republika, s.r.o. | Czech Republic | |||||||
| Zoetis Colombia S.A.S. | Colombia | |||||||
| Zoetis Comércio E Distribuição Ltda. | Brazil | |||||||
| Zoetis Costa Rica, S.R.L. | Costa Rica | |||||||
| Zoetis de Chile S.A. | Chile | |||||||
| Zoetis de Uruguay S.R.L. | Uruguay | |||||||
| Zoetis Denmark ApS | Denmark | |||||||
| Zoetis Deutschland GmbH | Germany | |||||||
| Zoetis Egypt LLC | Egypt | |||||||
| Zoetis Egypt Pharmaceuticals LLC | Egypt | |||||||
| Zoetis Egypt Trading LLC | Egypt | |||||||
| Zoetis Enterprise Management (Shanghai) Co., Ltd. | China | |||||||
| Zoetis Finland Oy | Finland | |||||||
| Zoetis France | France | |||||||
| Zoetis Hayvan Sagligi Ltd. Sti. | Turkey | |||||||
| Zoetis Hellas S.A. | Greece | |||||||
| Zoetis Holdings LLC | United States | |||||||
| Zoetis Hungary Kft. | Hungary | |||||||
| Zoetis Import Egypt LLC | Egypt | |||||||
| Zoetis India Limited | India | |||||||
| Zoetis Indústria de Produtos Veterinários Ltda. | Brazil | |||||||
| Zoetis International Holdings B.V. | Netherlands | |||||||
| Zoetis Israël Holding B.V. | Netherlands | |||||||
| Zoetis Italia S.r.l. | Italy | |||||||
| Zoetis Japan Inc. | Japan | |||||||
| Zoetis Korea Ltd. | South Korea | |||||||
| Zoetis LLC | United States | |||||||
| Zoetis Luxembourg Holding S.à r.l. | Luxembourg | |||||||
| Zoetis Malaysia Sdn. Bhd. | Malaysia | |||||||
| Zoetis Manufacturing & Research Spain, S.L. | Spain | |||||||
| Zoetis Manufacturing Italia S.R.L. | Italy | |||||||
| Zoetis Medolla Manufacturing S.R.L. | Italy | |||||||
| Zoetis Mexico, S. de R.L. de C.V. | Mexico | |||||||
| Zoetis Netherlands 1 B.V. | Netherlands | |||||||
| SUBSIDIARY NAME | JURISDICTION OF INCORPORATION / FORMATION | |||||||
| Zoetis Netherlands 3 B.V. | Netherlands | |||||||
| Zoetis Netherlands 4 B.V. | Netherlands | |||||||
| Zoetis Netherlands 5 B.V. | Netherlands | |||||||
| Zoetis New Zealand Limited | New Zealand | |||||||
| Zoetis OOO | Russian Federation | |||||||
| Zoetis Österreich GmbH | Austria | |||||||
| Zoetis Overseas Holding B.V. | Netherlands | |||||||
| Zoetis Overseas Services Inc. | United States | |||||||
| Zoetis Panama S. de R.L. | Panama | |||||||
| Zoetis Pharmaceutical Research Private Limited | India | |||||||
| Zoetis Philippines Inc. | Philippines | |||||||
| Zoetis Polska sp. z o.o | Poland | |||||||
| Zoetis Portugal, Lda. | Portugal | |||||||
| Zoetis Products Inc. | United States | |||||||
| Zoetis Reference Laboratories China Co., Ltd. | China | |||||||
| Zoetis Reference Labs LLC | United States | |||||||
| Zoetis Romania SRL | Romania | |||||||
| Zoetis S.R.L. | Peru | |||||||
| Zoetis Salud Animal de Bolivia S.A. | Bolivia | |||||||
| Zoetis Schweiz GmbH | Switzerland | |||||||
| Zoetis Services LLC | United States | |||||||
| Zoetis Singapore Pte. Ltd. | Singapore | |||||||
| Zoetis South Africa (Pty) Ltd. | South Africa | |||||||
| Zoetis Spain, S.L. | Spain | |||||||
| Zoetis Subsidiary Holdings Inc. | United States | |||||||
| Zoetis Suzhou Manufacturing Co., Ltd. | China | |||||||
| Zoetis Sweden AB | Sweden | |||||||
| Zoetis Taiwan Limited | Taiwan | |||||||
| Zoetis Treasury Center BV | Belgium | |||||||
| Zoetis UK Limited | United Kingdom | |||||||
| Zoetis Ukraine LLC | Ukraine | |||||||
| Zoetis US LLC | United States | |||||||
| Zoetis Vietnam Limited Liability Company | Vietnam | |||||||
| Zoetis Weesp B.V. | Netherlands | |||||||
| Zoetis WLC LLC | United States | |||||||
| Zoetis, C.A. | Venezuela | |||||||
| ZOETISECUADOR Cia. Ltda. | Ecuador | |||||||
| February 14, 2023 | By: | /s/ KRISTIN C. PECK | ||||||
| Kristin C. Peck | ||||||||
| Chief Executive Officer | ||||||||
| February 14, 2023 | By: | /s/ WETTENY JOSEPH | ||||||
| Wetteny Joseph | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
| February 14, 2023 | By: | /s/ KRISTIN C. PECK | ||||||
| Kristin C. Peck | ||||||||
| Chief Executive Officer | ||||||||
| February 14, 2023 | By: | /s/ WETTENY JOSEPH | ||||||
Wetteny Joseph | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
Audit Information |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Auditor Information [Abstract] | |
| Auditor Location | Short Hills, NJ |
| Auditor Name | KPMG LLP |
| Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Statement of Comprehensive Income [Abstract] | |||||
| Net income before allocation to noncontrolling interests | $ 2,111 | $ 2,034 | $ 1,636 | ||
| Other comprehensive loss, net of tax and reclassification adjustments: | |||||
| Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | [1] | 86 | 19 | (15) | |
| Unrecognized net gains/(losses) on derivative instruments | [1] | 36 | 42 | (58) | |
| Foreign currency translation adjustments, net | (188) | (101) | 69 | ||
| Benefit plans: Actuarial gain/(loss), net | [1] | 13 | 6 | 0 | |
| Total other comprehensive loss, net of tax | (53) | (34) | (4) | ||
| Comprehensive income before allocation to noncontrolling interests | 2,058 | 2,000 | 1,632 | ||
| Less: Comprehensive loss attributable to noncontrolling interests | (3) | (3) | (2) | ||
| Comprehensive income attributable to Zoetis Inc. | $ 2,061 | $ 2,003 | $ 1,634 | ||
| |||||
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
||
|---|---|---|---|---|
| Assets | ||||
| Cash and cash equivalents | [1] | $ 3,581 | $ 3,485 | |
| Accounts receivable, less allowance for doubtful accounts of $19 in 2022 and $17 in 2021 | 1,215 | 1,133 | ||
| Inventories | 2,345 | 1,923 | ||
| Other current assets | 365 | 389 | ||
| Total current assets | 7,506 | 6,930 | ||
| Property, plant and equipment, less accumulated depreciation of $2,297 in 2022 and $2,072 in 2021 | 2,753 | 2,422 | ||
| Operating lease right of use assets | 220 | 181 | ||
| Goodwill | 2,746 | 2,682 | ||
| Identifiable intangible assets, less accumulated amortization | 1,380 | 1,474 | ||
| Noncurrent deferred tax assets | 173 | 100 | ||
| Other noncurrent assets | 147 | 111 | ||
| Total assets | 14,925 | 13,900 | ||
| Liabilities and Equity | ||||
| Short-term borrowings | 2 | 0 | ||
| Current portion of long-term debt | 1,350 | 0 | ||
| Accounts payable | 405 | 436 | ||
| Dividends payable | 174 | 154 | ||
| Accrued expenses | 682 | 710 | ||
| Accrued compensation and related items | 300 | 392 | ||
| Income taxes payable | 157 | 38 | ||
| Other current liabilities | 97 | 67 | ||
| Total current liabilities | 3,167 | 1,797 | ||
| Long-term debt, net of discount and issuance costs | 6,552 | 6,592 | ||
| Noncurrent deferred tax liabilities | 142 | 320 | ||
| Operating lease liabilities | 186 | 151 | ||
| Other taxes payable | 258 | 257 | ||
| Other noncurrent liabilities | 217 | 239 | ||
| Total liabilities | 10,522 | 9,356 | ||
| Common stock, $0.01 par value: 6,000,000,000 authorized, 501,891,243 and 501,891,243 shares issued; 463,808,059 and 472,574,090 shares outstanding at December 31, 2022 and 2021, respectively | 5 | 5 | ||
| Treasury stock, at cost, 38,083,184 and 29,317,153 shares of common stock at December 31, 2022 and 2021, respectively | (4,539) | (2,952) | ||
| Additional paid-in capital | 1,088 | 1,068 | ||
| Retained earnings | 8,668 | 7,186 | ||
| Accumulated other comprehensive loss | (817) | (764) | ||
| Stockholders' Equity Attributable to Parent | 4,405 | 4,543 | ||
| Stockholders' Equity Attributable to Noncontrolling Interest | (2) | 1 | ||
| Total equity | 4,403 | 4,544 | ||
| Total liabilities and equity | $ 14,925 | $ 13,900 | ||
| ||||
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Allowance for doubtful accounts | $ 19 | $ 17 |
| Accumulated depreciation | $ 2,297 | $ 2,072 |
| Preferred stock, authorized (in shares) | 1,000,000,000 | |
| Common stock, par value (in dollars per share) | $ 0.01 | |
| Common stock, shares authorized | 6,000,000,000 | |
| Common stock, shares issued | 501,891,243 | 501,900,000 |
| Common stock, shares outstanding | 463,808,059 | 472,574,090 |
| Treasury shares | 38,083,184 | 29,317,153 |
| Restricted cash | $ 4 | $ 3 |
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions |
Total |
Common Stock |
[1] | Treasury Stock |
[1] | Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Equity Attributable to Noncontrolling Interests |
Share Repurchase Program |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Treasury shares | 26,400,000 | |||||||||||||||||
| Common stock, shares outstanding | 501,900,000 | |||||||||||||||||
| Beginning balance at Dec. 31, 2019 | $ 2,708 | $ 5 | $ (2,042) | $ 1,044 | $ 4,427 | $ (726) | $ 0 | |||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
| Net income/(loss) | 1,636 | 1,638 | (2) | |||||||||||||||
| Other comprehensive loss | $ (4) | (4) | 0 | |||||||||||||||
| Stock-based compensation | 0 | |||||||||||||||||
| Treasury Stock, Shares, Acquired | 1,600,000 | 1,800,000 | ||||||||||||||||
| The fair value of our noncontrolling interest in a VIE | $ (6) | (6) | ||||||||||||||||
| Share-based compensation awards | [2] | $ 78 | 62 | 18 | (2) | |||||||||||||
| Share repurchase program | 0 | |||||||||||||||||
| Treasury stock acquired | [3] | $ (250) | (250) | |||||||||||||||
| Employee benefit plan contribution from Pfizer Inc. | [4] | 3 | 3 | |||||||||||||||
| Dividends declared | (404) | (404) | ||||||||||||||||
| Ending balance at Dec. 31, 2020 | $ 3,773 | 5 | (2,230) | 1,065 | 5,659 | (730) | 4 | |||||||||||
| Treasury shares | 26,600,000 | |||||||||||||||||
| Common stock, shares outstanding | 501,900,000 | |||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
| Net income/(loss) | $ 2,034 | 2,037 | (3) | |||||||||||||||
| Other comprehensive loss | $ (34) | (34) | 0 | |||||||||||||||
| Stock-based compensation | 0 | |||||||||||||||||
| Treasury Stock, Shares, Acquired | 1,300,000 | 4,000,000.0 | ||||||||||||||||
| Share-based compensation awards | [2] | $ 20 | 21 | (1) | ||||||||||||||
| Share repurchase program | 0 | |||||||||||||||||
| Treasury stock acquired | [3] | $ (743) | (743) | |||||||||||||||
| Employee benefit plan contribution from Pfizer Inc. | [4] | 3 | 3 | |||||||||||||||
| Dividends declared | (509) | (509) | ||||||||||||||||
| Ending balance at Dec. 31, 2021 | $ 4,544 | 5 | (2,952) | 1,068 | 7,186 | (764) | 1 | |||||||||||
| Treasury shares | 29,317,153 | |||||||||||||||||
| Common stock, shares outstanding | 501,900,000 | |||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
| Net income/(loss) | $ 2,111 | (3) | ||||||||||||||||
| Other comprehensive loss | $ (53) | (53) | 0 | |||||||||||||||
| Treasury Stock, Shares, Acquired | 700,000 | 9,500,000 | ||||||||||||||||
| Share-based compensation awards | [2] | $ 23 | 7 | 17 | (1) | |||||||||||||
| Treasury stock acquired | [3] | (1,594) | (1,594) | |||||||||||||||
| Employee benefit plan contribution from Pfizer Inc. | [4] | 3 | 3 | |||||||||||||||
| Dividends declared | (631) | (631) | ||||||||||||||||
| Ending balance at Dec. 31, 2022 | $ 4,403 | $ 5 | $ (4,539) | $ 1,088 | $ 8,668 | $ (817) | $ (2) | |||||||||||
| Treasury shares | 38,083,184 | |||||||||||||||||
| Common stock, shares outstanding | 501,891,243 | |||||||||||||||||
| ||||||||||||||||||
CONSOLIDATED STATEMENTS OF EQUITY (PARENTHETICAL) - shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|---|---|
| Statement of Stockholders' Equity [Abstract] | ||||
| Common stock, shares outstanding | 463,808,059 | 472,574,090 | ||
| Treasury shares | 38,083,184 | 29,317,153 | 26,600,000 | 26,400,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||
| Operating Activities | |||||||||||
| Net income before allocation to noncontrolling interests | $ 2,111 | $ 2,034 | $ 1,636 | ||||||||
| Adjustments to reconcile net income before noncontrolling interests to net cash provided by/(used in) operating activities | |||||||||||
| Depreciation and amortization expense | [1],[2] | 465 | 448 | 441 | |||||||
| Share-based compensation expense | 62 | 58 | 59 | ||||||||
| Asset write-offs and asset impairments | 53 | 47 | 43 | ||||||||
| Net loss/(gain) on sales of assets | 0 | 2 | (19) | ||||||||
| Provision for losses on inventory | 76 | 46 | 105 | ||||||||
| Deferred taxes | (286) | (80) | (62) | ||||||||
| Employee benefit plan contribution from Pfizer Inc. | 3 | 3 | 3 | ||||||||
| Other non-cash adjustments | 13 | (2) | 11 | ||||||||
| Other changes in assets and liabilities, net of acquisitions and divestitures: | |||||||||||
| Accounts receivable | (137) | (155) | 74 | ||||||||
| Inventories | (486) | (366) | (346) | ||||||||
| Other assets | 35 | (7) | (68) | ||||||||
| Accounts payable | (29) | (17) | 147 | ||||||||
| Other liabilities | (180) | 227 | 91 | ||||||||
| Other tax accounts, net | 98 | (25) | 17 | ||||||||
| Net cash provided by operating activities | 1,912 | 2,213 | 2,126 | ||||||||
| Investing Activities | |||||||||||
| Capital expenditures | (586) | (477) | (453) | ||||||||
| Acquisitions, net of cash acquired | (312) | (14) | (113) | ||||||||
| Purchase of investments | (9) | (12) | 0 | ||||||||
| Net proceeds from sale of assets | 1 | 2 | 21 | ||||||||
| Proceeds from/(payments of) derivative instrument activity, net | 23 | 44 | (27) | ||||||||
| Other investing activities | 0 | (1) | 0 | ||||||||
| Net cash used in investing activities | (883) | (458) | (572) | ||||||||
| Financing Activities | |||||||||||
| Increase/(decrease) in short-term borrowings, net | 2 | (4) | 4 | ||||||||
| Principal payments on long-term debt | 0 | (600) | (500) | ||||||||
| Proceeds from issuance of long-term debt—senior notes, net of discount | 1,348 | 0 | 1,240 | ||||||||
| Payment of consideration related to previous acquisitions | (1) | (6) | (2) | ||||||||
| Share-based compensation-related proceeds, net of taxes paid on withholding shares | (38) | (35) | 20 | ||||||||
| Purchases of treasury stock | (1,594) | (743) | (250) | ||||||||
| Cash dividends paid | (611) | (474) | (380) | ||||||||
| Acquisition of a noncontrolling interest, net of cash acquired | 0 | 0 | 3 | ||||||||
| Net cash (used in)/provided by financing activities | (904) | (1,862) | 123 | ||||||||
| Effect of exchange-rate changes on cash and cash equivalents | (29) | (12) | (7) | ||||||||
| Net increase/(decrease) in cash and cash equivalents | 96 | (119) | 1,670 | ||||||||
| Cash and cash equivalents at beginning of period | 3,581 | [3] | 3,485 | [3] | 3,604 | ||||||
| Cash paid during the period for: | |||||||||||
| Income taxes | 638 | 548 | 418 | ||||||||
| Interest, net of capitalized interest | 242 | 253 | 257 | ||||||||
| Non-cash transactions: | |||||||||||
| Capital expenditures | 3 | 6 | 3 | ||||||||
| Dividends payable | 174 | 154 | 119 | ||||||||
| Payments to Settle Derivative Instruments | 114 | 0 | (6) | ||||||||
| Payments of Debt Issuance Costs | $ (10) | $ 0 | $ (12) | ||||||||
| |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | $ 6 | $ 3 | $ 0 |
| Cash Flow Hedging | |||
| Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 26 | 5 | (5) |
| Net Investment Hedging | |||
| Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | $ 11 | $ 13 | $ (18) |
Subsequent Events |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | On February 1, 2023, we redeemed in full, upon maturity, the $1.35 billion aggregate principal amount of our 3.250% 2013 senior notes due 2023. See Note 9. Financial Instruments for additional information. |
Business Description |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Business Description | etis Inc. (including its subsidiaries, collectively, Zoetis, the company, we, us or our) is a global leader in the animal health industry, focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health technology. We organize and operate our business in two geographic regions: the United States (U.S.) and International. We directly market our products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. Our products are sold in more than 100 countries, including developed markets and emerging markets. We have a diversified business, marketing products across eight core species: dogs, cats and horses (collectively, companion animals) and cattle, swine, poultry, fish and sheep (collectively, livestock); and within seven major product categories: parasiticides, vaccines, dermatology, anti-infectives, other pharmaceutical products, medicated feed additives and animal health diagnostics. We were incorporated in Delaware in July 2012 and prior to that the company was a business unit of Pfizer Inc. (Pfizer).
|
Basis of Presentation |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | 2. Basis of Presentation The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). For subsidiaries operating outside the United States, the consolidated financial information is included as of and for the fiscal year ended November 30 for each year presented. All significant intercompany balances and transactions between the legal entities that comprise Zoetis have been eliminated. For those subsidiaries included in these consolidated financial statements where our ownership is less than 100%, including a variable interest entity consolidated by Zoetis as the primary beneficiary, the noncontrolling interests have been shown in equity as Equity attributable to noncontrolling interests. |
Significant Accounting Policies |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Accounting Policies [Abstract] | |
| Significant Accounting Policies | Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, it issued subsequent amendments to the initial guidance: ASU No. 2021-01 and ASU No. 2022-06, Reference Rate Reform (Topic 848). The new guidance provides temporary optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Adoption of the guidance is optional and effective as of March 12, 2020, but only available through December 31, 2024. We currently have various hedging transactions that reference LIBOR. We will make specific amendments to our affected contracts and hedge documentation to adopt these standards during the transition period and we do not expect these changes to have a material impact on our consolidated financial statements or related disclosures. Estimates and Assumptions In preparing the consolidated financial statements, we use certain estimates and assumptions that affect reported amounts and disclosures, including amounts recorded in connection with acquisitions. These estimates and underlying assumptions can impact all elements of our consolidated financial statements. For example, in the Consolidated Statements of Income, estimates are used when accounting for deductions from revenue (such as rebates, sales allowances, product returns and discounts), determining cost of sales, allocating cost in the form of depreciation and amortization, and estimating restructuring charges and the impact of contingencies. On the Consolidated Balance Sheets, estimates are used in determining the valuation and recoverability of assets, such as accounts receivables, inventories, fixed assets, goodwill and other identifiable intangible assets, and estimates are used in determining the reported amounts of liabilities, such as taxes payable, uncertain tax positions, benefit obligations, the impact of contingencies, deductions from revenue and restructuring reserves, all of which also impact the Consolidated Statements of Income. Our estimates are often based on complex judgments, probabilities and assumptions that we believe to be reasonable but that can be inherently uncertain and unpredictable. If our estimates and assumptions are not representative of actual outcomes, our results could be materially impacted. As future events and their effects cannot be determined with precision, our estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. We are subject to risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in competition, litigation, legislation and regulations. We regularly evaluate our estimates and assumptions using historical experience and expectations about the future. We adjust our estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in our consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under relevant accounting standards. It is possible that others, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. Acquisitions Our consolidated financial statements include the operations of acquired businesses from the date of acquisition. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in-process research and development (IPR&D) be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When we acquire net assets that do not constitute a business as defined in U.S. GAAP, no goodwill is recognized. Amounts recorded for acquisitions can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Leases We determine if a contract contains a lease at inception. Our current portfolio includes only operating leases which are recorded as a right of use asset, as of the lease commencement date, in an amount equal to the present value of future payments over the lease term. We have elected not to recognize right of use assets and lease liabilities for short-term leases of vehicles and equipment with a lease term of twelve months or less. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. A corresponding lease liability is recorded within Other current liabilities and Operating lease liabilities. The present value of future payments is discounted using the rate implicit in the lease, when available. When the implicit rate is not available, as is frequently the case with our lease portfolio, the present value is calculated using our incremental borrowing rate, which is determined on the commencement date. The incremental borrowing rate represents the rate of interest that we would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. As we do not borrow on a collateralized basis, our non-collateralized borrowing rate is used as an input in deriving the incremental borrowing rate. Fixed lease payments are recognized on straight-line basis over the lease term, while variable payments are recognized in the period incurred. Variable lease payments include real estate taxes and charges for other non-lease services due to lessors that are not dependent on an index or rate and utilization based charges associated with fleet vehicles. Our real estate and fleet lease contracts may include fixed consideration attributable to both lease and non-lease components, including non-lease services provided by the vendor, which are accounted for as a single fixed minimum payment. For leases of certain classes of machinery and equipment, contract consideration is allocated to lease and non-lease components on the basis of relative standalone price. Foreign Currency Translation For most of our international operations, local currencies have been determined to be the functional currencies. We translate functional currency assets and liabilities to their U.S. dollar equivalents at exchange rates in effect at the balance sheet date and we translate functional currency income and expense amounts to their U.S. dollar equivalents at average exchange rates for the period. The U.S. dollar effects that arise from changing translation rates are recorded in Other comprehensive income/(loss), net of tax. The effects of converting non-functional currency assets and liabilities into the functional currency are recorded in Other (income)/deductions––net. For operations in highly inflationary economies, we translate monetary items at rates in effect at the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates. Revenue, Deductions from Revenue and the Allowance for Doubtful Accounts We recognize revenue from product sales when control of the goods has transferred to the customer, which is typically once the goods have shipped and the customer has assumed title. Revenue reflects the total consideration to which we expect to be entitled (i.e., the transaction price), in exchange for products sold, after considering various types of variable consideration including rebates, sales allowances, product returns and discounts. Variable consideration is estimated and recorded at the time that related revenue is recognized. Our estimates reflect the amount by which we expect variable consideration to impact revenue recognized and are generally based on contractual terms or historical experience, adjusted as necessary to reflect our expectations about the future. Our customer payment terms generally range from 30 to 90 days. Estimates of variable consideration utilize a complex series of judgments and assumptions to determine the amount by which we expect revenue to be reduced, for example; •for sales returns, we perform calculations in each market that incorporate the following, as appropriate: local returns policies and practices; historic returns as a percentage of revenue; estimated shelf life by product; an estimate of the amount of time between shipment and return or lag time; and any other factors that could impact the estimate of future returns, product recalls, discontinuation of products or a changing competitive environment; and •for revenue incentives, we use our historical experience with similar incentives programs to estimate the impact of such programs on revenue for the current period. Although the amounts recorded for these deductions from revenue are dependent on estimates and assumptions, historically our adjustments to actual results have not been material. The sensitivity of our estimates can vary by program, type of customer and geographic location. Accruals for deductions from revenue are recorded as either a reduction in Accounts receivable or within Accrued expenses, depending on the nature of the contract and method of expected payment. Amounts recorded as a reduction in Accounts receivable as of December 31, 2022 and 2021 are approximately $295 million and $216 million, respectively. As of December 31, 2022, and 2021, accruals for deductions from revenue included in Accrued expenses are approximately $285 million and $312 million, respectively. A deferral of revenue may be required in the event that we have not satisfied all customer obligations for which we have been compensated. The transaction price is allocated to the individual performance obligations on the basis of relative stand-alone selling price, which is typically based on actual sales prices. Revenue associated with unsatisfied performance obligations are contract liabilities, is recorded within Other current liabilities and Other noncurrent liabilities, and is recognized once control of the underlying products has transferred to the customer. Contract liabilities reflected within Other current liabilities as of December 31, 2021 and subsequently recognized as revenue during 2022 were approximately $5 million. Contract liabilities as of December 31, 2022 were approximately $14 million. We do not disclose the transaction price allocated to unsatisfied performance obligations related to contracts with an original expected duration of one year or less, or for contracts for which we recognize revenue in line with our right to invoice the customer. Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of December 31, 2022 is not material. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from Revenue. Shipping and handling costs incurred after control of the purchased product has transferred to the customer are accounted for as a fulfillment cost, within Selling, general and administrative expenses. We also record estimates for bad debts. We periodically assess the adequacy of the allowance for doubtful accounts by evaluating the collectability of outstanding receivables based on factors such as past due history, historical and expected collection patterns, the financial condition of our customers, the robust nature of our credit and collection practices and the economic environment. Amounts recorded for sales deductions and bad debts can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Cost of Sales and Inventories Inventories are carried at the lower of cost or net realizable value. The cost of finished goods, work-in-process and raw materials is determined using average actual cost. We regularly review our inventories for impairment and adjustments are recorded when necessary. Selling, General and Administrative Expenses Selling, general and administrative costs are expensed as incurred. Among other things, these expenses include the internal and external costs of marketing, advertising, and shipping and handling as well as certain costs related to business technology, facilities, legal, finance, human resources, business development, public affairs and procurement, among others. Advertising expenses relating to production costs are expensed as incurred, and the costs of space in publications are expensed when the related advertising occurs. Advertising and promotion expenses totaled approximately $287 million in 2022, $292 million in 2021 and $233 million in 2020. Shipping and handling costs totaled approximately $82 million in 2022, $80 million in 2021 and $66 million in 2020. Research and Development Expenses Research and development (R&D) costs are expensed as incurred. Research is the effort associated with the discovery of new knowledge that will be useful in developing a new product or in significantly improving an existing product. Development is the implementation of the research findings. Before a compound receives regulatory approval, we record upfront and milestone payments made by us to third parties under licensing arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone has been achieved. Once a compound receives regulatory approval in a major market, we record any milestone payments in Identifiable intangible assets, less accumulated amortization and, unless the assets are determined to have an indefinite life, we amortize them on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets Long-lived assets include: • Goodwill—goodwill represents the excess of the consideration transferred for an acquired business over the assigned values of its net assets. Goodwill is not amortized. • Identifiable intangible assets, less accumulated amortization—these acquired assets are recorded at our cost. Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Identifiable intangible assets with indefinite lives that are associated with marketed products are not amortized until a useful life can be determined. Identifiable intangible assets associated with IPR&D projects are not amortized until regulatory approval is obtained. The useful life of an amortizing asset generally is determined by identifying the period in which substantially all of the cash flows are expected to be generated. • Property, plant and equipment, less accumulated depreciation––these assets are recorded at our cost and are increased by the cost of any significant improvements after purchase. Property, plant and equipment assets, other than land and construction-in-progress, are depreciated on a straight-line basis over the estimated useful life of the individual assets. Depreciation begins when the asset is ready for its intended use. For tax purposes, accelerated depreciation methods are used as allowed by tax laws. Amortization expense related to finite-lived identifiable intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property are included in Amortization of intangible assets as they benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function and depreciation of property, plant and equipment are included in Cost of sales, Selling, general and administrative expenses and Research and development expenses, as appropriate. We review all of our long-lived assets for impairment indicators throughout the year and we perform detailed testing whenever impairment indicators are present. In addition, we perform impairment testing for goodwill and indefinite-lived assets at least annually. When necessary, we record charges for impairments. Specifically: • For finite-lived identifiable intangible assets, such as developed technology rights, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we calculate the undiscounted value of the projected cash flows associated with the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is found to be greater, we record an impairment loss for the excess of book value over fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate. • For indefinite-lived identifiable intangible assets, such as brands and IPR&D assets, we test for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If we conclude it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the indefinite-lived intangible asset with its carrying value is performed. If the fair value is less than the carrying amount, an impairment loss is recognized. We record an impairment loss, if any, for the excess of book value over fair value. In addition, in all cases of an impairment review other than for IPR&D assets, we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. • For goodwill, we test for impairment on at least an annual basis, or more frequently if necessary, either by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or by performing a periodic quantitative assessment. If we choose to perform a qualitative analysis and conclude it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed. We determine the implied fair value of goodwill by subtracting the fair value of all the identifiable net assets other than goodwill from the fair value of the reporting unit and record an impairment loss for the excess, if any, of book value of goodwill over the implied fair value. In 2022 and 2021, we performed a periodic quantitative impairment assessment as of September 30, 2022 and 2021, respectively, which did not result in the impairment of goodwill associated with any of our reporting units. Impairment reviews can involve a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Software Capitalization and Depreciation We capitalize certain costs incurred in connection with obtaining or developing internal-use software, including payroll and payroll-related costs for employees who are directly associated with the internal-use software project, external direct costs of materials and services and interest costs while developing the software. Capitalized software costs are included in Property, plant and equipment and are amortized using the straight-line method over the estimated useful life of 5 to 10 years. Capitalization of such costs ceases when the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages, as well as software maintenance and training costs, are expensed in the period in which they are incurred. The company capitalized $57 million and $73 million of internal-use software for the years ended December 31, 2022 and 2021, respectively. Depreciation expense for capitalized software was $69 million in 2022, $52 million in 2021 and $46 million in 2020. Restructuring Charges and Certain Acquisition-Related Costs We may incur restructuring charges in connection with acquisitions when we implement plans to restructure and integrate the acquired operations or in connection with cost-reduction and productivity initiatives. Included in Restructuring charges and certain acquisition-related costs are all restructuring charges and certain costs associated with acquiring and integrating an acquired business. Transaction costs and integration costs are expensed as incurred. Termination costs are a significant component of restructuring charges and are generally recorded when the actions are probable and estimable. Amounts recorded for restructuring charges and other associated costs can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Earnings per Share Basic earnings per share is computed by dividing net income attributable to Zoetis by the weighted-average number of common shares outstanding during the period. Diluted earnings per share adjusts the weighted-average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units, and performance-vesting restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method. Cash Equivalents Cash equivalents include items almost as liquid as cash, such as money market funds, certificates of deposit and time deposits with maturity periods of three months or less when purchased. Fair Value Certain assets and liabilities are required to be measured at fair value, either upon initial recognition or for subsequent accounting or reporting. For example, we use fair value extensively in the initial recognition of net assets acquired in a business combination. Fair value is estimated using an exit price approach, which requires, among other things, that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer. When estimating fair value, depending on the nature and complexity of the asset or liability, we may use one or all of the following approaches: • Income approach, which is based on the present value of a future stream of net cash flows. • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. These fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Accounts Receivable The recorded amounts of accounts receivable approximate fair value because of their relatively short-term nature. As of December 31, 2022 and 2021, Accounts receivable, less allowance for doubtful accounts, of $1,215 million and $1,133 million, respectively, includes approximately $71 million and $47 million, respectively, of other receivables, such as trade notes receivable and royalty receivables, among others. Deferred Tax Assets and Liabilities and Income Tax Contingencies Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws. We provide a valuation allowance when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies. We account for income tax contingencies using a benefit recognition model. If we consider that a tax position is more likely than not to be sustained upon audit, based solely on the technical merits of the position, we recognize the benefit. We measure the benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. Under the benefit recognition model, if the initial assessment fails to result in the recognition of a tax benefit, we regularly monitor our position and subsequently recognize the tax benefit: (i) if there are changes in tax law, analogous case law or there is new information that sufficiently raise the likelihood of prevailing on the technical merits of the position to more likely than not; (ii) if the statute of limitations expires; or (iii) if there is a completion of an audit resulting in a favorable settlement of that tax year with the appropriate agency. We regularly re-evaluate our tax positions based on the results of audits of federal, state and foreign income tax filings, statute of limitations expirations, changes in tax law or receipt of new information that would either increase or decrease the technical merits of a position relative to the “more-likely-than-not” standard. Liabilities associated with uncertain tax positions are classified as current only when we expect to pay cash within the next 12 months. Interest and penalties, if any, are recorded in Provision for taxes on income and are classified on our Consolidated Balance Sheets with the related tax liability. Amounts recorded for valuation allowances and income tax contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Benefit Plans All dedicated benefit plans are pension plans. For our dedicated benefit plans, we recognize the overfunded or underfunded status of defined benefit plans as an asset or liability on the Consolidated Balance Sheets and the obligations generally are measured at the actuarial present value of all benefits attributable to employee service rendered, as provided by the applicable benefit formula. Pension obligations may include assumptions such as long-term rate of return on plan assets, expected employee turnover, participant mortality, and future compensation levels. Plan assets are measured at fair value. Net periodic benefit costs are recognized, as required, into Cost of sales, Selling, general and administrative expenses and Research and development expenses, as appropriate. Amounts recorded for benefit plans can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Asset Retirement Obligations We record accruals for the legal obligations associated with the retirement of tangible long-lived assets, including obligations under the doctrine of promissory estoppel and those that are conditioned upon the occurrence of future events. These obligations generally result from the acquisition, construction, development and/or normal operation of long-lived assets. We recognize the fair value of these obligations in the period in which they are incurred by increasing the carrying amount of the related asset. Over time, we recognize expense for the accretion of the liability and for the amortization of the asset. As of December 31, 2022 and 2021, accruals for asset retirement obligations are $25 million and are primarily included in Other noncurrent liabilities. Amounts recorded for asset retirement obligations can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Legal and Environmental Contingencies We are subject to numerous contingencies arising in the ordinary course of business, such as product liability and other product-related litigation, commercial litigation, patent litigation, environmental claims and proceedings, government investigations and guarantees and indemnifications. We record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. We record anticipated recoveries under existing insurance contracts when recovery is assured. Amounts recorded for contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. Share-Based Payments Our compensation programs can include share-based payment plans. All grants under share-based payment programs are accounted for at fair value and such amounts generally are amortized on a straight-line basis over the vesting term to Cost of sales, Selling, general and administrative expenses, and Research and development expenses, as appropriate. We include the impact of estimated forfeitures when determining share-based compensation expense. Amounts recorded for share-based compensation can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| 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 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. 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: 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; •other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products; •medicated feed additives: products added to animal feed that provide medicines to livestock; and •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. 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 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
Revenue exceeded $100 million in twelve countries outside the U.S. in 2022 and 2021 and eleven countries outside the U.S. in 2020. The U.S. was the only country to contribute more than 10% of total revenue in each year. Revenue by major species
Revenue by species
Revenue by product category
B. Other Revenue Information Significant Customers We primarily sell our companion animal products to veterinarians or to third-party veterinary distributors that typically then sell our products to veterinarians, and in each case, veterinarians then typically sell our products to pet owners. In certain markets, we also sell certain companion animal products through retail and e-commerce outlets. We sell our livestock products primarily to veterinarians and livestock producers, including beef and dairy farmers as well as pork and poultry operations, in addition to third-party veterinary distributors and retail outlets who then typically sell the products to livestock producers. Sales to our largest customer, a U.S. veterinary distributor, represented approximately 14% of total revenue for 2022, 2021 and 2020.
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| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions and Divestitures | During 2022, we completed the acquisition of Basepaws, a privately held petcare genetics company based in the U.S., which provides pet owners with genetic tests, analytics and early health risk assessments that can help manage the health, wellness and quality of care for their pets. We also completed the acquisition of NewMetrica, a privately held company based in Scotland, that provides scientifically-developed instruments to measure quality of life in companion animals. These transactions did not have a material impact on our consolidated financial statements. During 2021, we entered into an agreement to acquire Jurox, a privately held animal health company based in Australia, which develops, manufactures and markets a wide range of veterinary medicines for treating companion animals and livestock. On September 30, 2022, after satisfying all customary closing conditions, including clearance from the Australian Competition and Consumer Commission, we completed the acquisition of Jurox. We acquired 100% of the outstanding shares for an aggregate cash purchase price of $226 million, which was adjusted to $240 million for cash and working capital and other adjustments as of the closing date. Net cash consideration transferred to the seller was $215 million. As of the balance sheet date, the remaining purchase consideration of $5 million was outstanding and recorded in Other current liabilities. The transaction was accounted for as a business combination, with the assets acquired and liabilities assumed measured at their respective acquisition date fair values. The table below presents the preliminary fair values allocated to the assets and liabilities of Jurox as of the acquisition date:
(a) Acquired inventory is comprised of finished goods, work in process and raw materials. The fair value of finished goods was determined based on net realizable value adjusted for the costs of the selling effort, a reasonable profit allowance for the selling effort, and estimated holding costs. The fair value of work in process was determined based on net realizable value adjusted for costs to complete the manufacturing process, costs of the selling effort, a reasonable profit allowance for the remaining manufacturing and selling effort, and an estimate of holding costs. The fair value of raw materials was determined to approximate book value. (b) Property, plant and equipment is comprised of buildings, machinery and equipment, land, construction in progress and furniture and fixtures. The fair value was primarily determined using a reproduction/replacement cost approach which measures the value of an asset by estimating the cost to acquire or construct comparable assets adjusted for age and condition of the asset. (c) Identifiable intangible assets consist of developed technology rights. The fair value of identifiable intangible assets was determined using the income approach, which includes a forecast of expected future cash flows. For additional information regarding identifiable intangible assets, see Note 13. Goodwill and Other Intangible Assets. (d) Goodwill represents the excess of consideration transferred over the fair values of the assets acquired and liabilities assumed. It is allocated to our International segment and is primarily attributable to cost and revenue synergies including market share capture, elimination of cost redundancies and gain of cost efficiencies, and intangible assets such as assembled workforce which are not separately recognizable. The primary strategic purpose of the acquisition was to enhance the company’s existing product portfolio. The goodwill recorded is not deductible for tax purposes. All amounts recorded are subject to final valuation. Any adjustments to our preliminary purchase price allocation identified during the measurement period, which will not exceed one year from the acquisition date, will be accounted for prospectively. In 2021, we also acquired certain assets to expand our portfolio of equine care products, which did not have a material impact on our consolidated financial statements. During 2020, we completed the acquisitions of Fish Vet Group, a diagnostics company for aquaculture, Virtual Recall, a veterinary engagement software company, Performance Livestock Analytics, a cloud-based technology company in the precision animal health business, and Ethos Diagnostic Science, a veterinary reference laboratory business with labs across the U.S. We also entered into an option purchase agreement as part of a research and development arrangement with a Belgian company, a variable interest entity of which Zoetis is the primary beneficiary and now consolidating within our results. These transactions did not have a material impact on our consolidated financial statements. B. Divestitures In 2020, we received cash proceeds of $20 million resulting from payments received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.
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Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives |
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| Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 6. Restructuring Charges and Other Costs Associated with Acquisitions, Cost-Reduction and Productivity Initiatives In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges associated with site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems. In connection with our acquisition activity, we typically incur costs and charges associated with executing the transactions, integrating the acquired operations, which may include expenditures for consulting and the integration of systems and processes, product transfers and restructuring the consolidated company, which may include charges related to employees, assets and activities that will not continue in the consolidated company. All operating functions can be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as functions such as business technology, shared services and corporate operations. The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows:
(a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) Transaction costs represent external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. (c) The restructuring charges for the year ended December 31, 2022 are primarily related to employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, as well as asset impairment charges primarily related to the consolidation of manufacturing sites in China. The restructuring charges for the year ended December 31, 2021 are primarily related to the realignment of our international operations and other cost-reduction and productivity initiatives. The restructuring charges for the year ended December 31, 2020 are primarily related to CEO transition-related costs and other cost-reduction and productivity initiatives. (d) The restructuring charges are associated with the following: •For the year ended December 31, 2022, Manufacturing/research/corporate of $2 million and International of $4 million. •For the year ended December 31, 2021, Manufacturing/research/corporate of $21 million and International of $12 million. •For the year ended December 31, 2020, Manufacturing/research/corporate of $8 million. The components of, and changes in, our restructuring accruals are as follows:
(a) Includes adjustments for foreign currency translation. (b) At December 31, 2022 and 2021, included in Accrued Expenses ($5 million and $14 million, respectively) and Other noncurrent liabilities ($10 million and $11 million, respectively). (c) Includes contractual obligations of $7 million, of which payments are expected to be approximately $6 million in 2023 and $1 million thereafter.
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Other (Income)/Deductions - Net |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (Income)/Deductions - Net | he components of Other (income)/deductions—net follow:
(a) For 2022, primarily represents asset impairment charges related to customer relationships and developed technology rights in our diagnostics, poultry, cattle and swine businesses. For 2021, primarily represents asset impairment charges related to developed technology rights and trademarks in our dairy cattle, diagnostics and aquatic health businesses. For 2020, primarily represents asset impairment charges related to developed technology rights in our precision animal health and aquatic health businesses. (b) For 2020, represents income resulting from payments received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites. (c) Primarily driven by costs related to hedging and exposures to certain developed and emerging market currencies.
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Tax Matters |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax Matters | 8. Tax Matters A. Taxes on Income The income tax provision in the Consolidated Statements of Income includes tax costs and benefits, such as uncertain tax positions, repatriation decisions and audit settlements, among others. The components of Income before provision for taxes on income follow:
The components of Provision for taxes on income based on the location of the taxing authorities follow:
Tax Rate Reconciliation The reconciliation of the U.S. statutory income tax rate to our effective tax rate follows:
(a) For a discussion about unrecognized tax benefits and tax settlements and resolution of certain tax positions, see D. Tax Contingencies. Our effective income tax rate was 20.5%, 18.2% and 18.0% in 2022, 2021 and 2020, respectively. The higher effective tax rate for 2022, compared with 2021, was attributable to a less favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs), a lower benefit in the U.S. related to foreign-derived intangible income and lower net discrete tax benefits in 2022. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible and non-taxable items. The higher effective tax rate for 2021, compared with 2020, was primarily attributable to changes in the jurisdictional mix of earnings, which includes the impact of the location of earnings, repatriation costs, operating fluctuations in the normal course of business and the impact of non-deductible and non-taxable items, as well as higher net discrete tax benefits in 2020, partially offset by a benefit in the U.S. related to foreign-derived intangible income in 2021. In 2022, the company implemented an initiative to maximize its cash position in the U.S. This initiative resulted in a tax benefit in the U.S. in connection with a prepayment from a related foreign entity in Belgium which qualifies as foreign-derived intangible income; however, this income tax benefit has been deferred for 2022 and will be recognized in future periods. This deferred benefit is included in Other current assets on our Consolidated Balance Sheets as of December 31, 2022 in the amount of $38 million. On August 16, 2022, the U.S. Inflation Reduction Act of 2022 (the “IRA”) was enacted which, among other changes, implements a 15% alternative minimum tax on financial statement income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The alternative minimum tax and excise tax are effective for taxable years beginning after December 31, 2022 and the incentives to promote clean energy have various different effective dates. We do not currently expect the IRA to have a material impact on our financial results, including our annual estimated effective tax rate. B. Tax Matters Agreement In connection with the separation from Pfizer in 2013, we entered into a tax matters agreement with Pfizer that governs the parties' respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. In general, under the agreement: •Pfizer will be responsible for any U.S. federal, state, local or foreign income taxes and any U.S. state or local non-income taxes (and any related interest, penalties or audit adjustments and including those taxes attributable to our business) reportable on a consolidated, combined or unitary return that includes Pfizer or any of its subsidiaries (and us and/or any of our subsidiaries) for any periods or portions thereof ending on or prior to December 31, 2012. We will be responsible for the portion of any such taxes for periods or portions thereof beginning on or after January 1, 2013, as would be applicable to us if we filed the relevant tax returns on a standalone basis. •We will be responsible for any U.S. federal, state, local or foreign income taxes and any U.S. state or local non-income taxes (and any related interest, penalties or audit adjustments) that are reportable on returns that include only us and/or any of our subsidiaries, for all tax periods whether before or after the completion of the separation from Pfizer. •Pfizer will be responsible for certain specified foreign taxes directly resulting from certain aspects of the separation from Pfizer. We will not generally be entitled to receive payment from Pfizer in respect of any of our tax attributes or tax benefits or any reduction of taxes of Pfizer. Neither party's obligations under the agreement will be limited in amount or subject to any cap. The agreement also assigns responsibilities for administrative matters, such as the filing of returns, payment of taxes due, retention of records and conduct of audits, examinations or similar proceedings. In addition, the agreement provides for cooperation and information sharing with respect to tax matters. Pfizer is primarily responsible for preparing and filing any tax return with respect to the Pfizer affiliated group for U.S. federal income tax purposes and with respect to any consolidated, combined, unitary or similar group for U.S. state or local or foreign income tax purposes or U.S. state or local non-income tax purposes that includes Pfizer or any of its subsidiaries, including those that also include us and/or any of our subsidiaries. We are generally responsible for preparing and filing any tax returns that include only us and/or any of our subsidiaries. The party responsible for preparing and filing a given tax return will generally have exclusive authority to control tax contests related to any such tax return. C. Deferred Taxes Deferred taxes arise as a result of basis differentials between financial statement accounting and tax amounts. The components of our deferred tax assets and liabilities follow:
(a) The change in the total net deferred tax asset/(liability) from December 31, 2021 to December 31, 2022 is primarily attributable to an increase in deferred tax assets related to prepaid/deferred items as a result of a prepayment from a related foreign entity in Belgium and an increase in deferred tax assets related to the capitalization and amortization of research & development costs for U.S. tax purposes. (b) In 2022, included in Noncurrent deferred tax assets ($173 million) and Noncurrent deferred tax liabilities ($142 million). In 2021, included in Noncurrent deferred tax assets ($100 million) and Noncurrent deferred tax liabilities ($320 million). We have carryforwards, primarily related to net operating losses, which are available to reduce future foreign, U.S. federal, and U.S. state income taxes payable with either an indefinite life or expiring at various times from 2023 to 2042. Valuation allowances are provided when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies. On the basis of this evaluation, as of December 31, 2022 and 2021, a valuation allowance of $129 million and $174 million, respectively, has been recorded to reflect only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as projections for growth. In general, it is our practice and intention to permanently reinvest the majority of the earnings of the company’s non-U.S. subsidiaries. As of December 31, 2022, the cumulative amount of such undistributed earnings was approximately $7.4 billion, for which we have not provided U.S. and local income taxes, such as U.S. state income taxes, local withholding taxes, and taxes on currency gains and losses. Since these earnings are intended to be indefinitely reinvested overseas as of December 31, 2022, we cannot predict the time or manner of a potential repatriation. As such, other than the deferred tax liability associated with the one-time mandatory deemed repatriation tax on such undistributed earnings imposed by the Tax Cuts and Jobs Act of 2017, it is not practicable to estimate the additional deferred tax liability associated with the potential repatriation of the unremitted earnings. D. Tax Contingencies We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statute of limitations expire. We treat these events as discrete items in the period of resolution. For a description of our accounting policies associated with accounting for income tax contingencies, see Note 3. Significant Accounting Policies: Deferred Tax Assets and Liabilities and Income Tax Contingencies. For a description of the risks associated with estimates and assumptions, see Note 3. Significant Accounting Policies: Estimates and Assumptions. Uncertain Tax Positions As tax law is complex and often subject to varied interpretations, it is uncertain whether some of our tax positions will be sustained upon audit. As of December 31, 2022, 2021 and 2020, we had approximately $192 million, $188 million and $187 million, respectively, in net liabilities associated with uncertain tax positions, excluding associated interest and penalties. As of December 31, 2022, 2021 and 2020, we had approximately $11 million, $3 million and $3 million, respectively, in assets associated with uncertain tax benefits recorded in Noncurrent deferred tax assets and Other noncurrent assets. •Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in our financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. These unrecognized tax benefits relate primarily to issues common among multinational corporations. Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate. The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:
(a) Primarily included in Provision for taxes on income. (b) In 2022, included in Noncurrent deferred tax assets and Other noncurrent assets ($2 million) and Other taxes payable ($192 million). In 2021, included in Noncurrent deferred tax assets and Other noncurrent assets ($1 million) and Other taxes payable ($188 million). In 2020, included in Noncurrent deferred tax assets and Other noncurrent assets ($1 million) and Other taxes payable ($187 million). •Interest related to our unrecognized tax benefits is recorded in accordance with the laws of each jurisdiction and is recorded in Provision for taxes on income in our Consolidated Statements of Income. We recorded net interest expense of $4 million, $1 million and $2 million in 2022, 2021 and 2020, respectively. Gross accrued interest totaled $16 million, $12 million and $11 million as of December 31, 2022, 2021 and 2020, respectively, and were included in Other taxes payable. As of December 31, 2022, 2021 and 2020, gross accrued penalties totaled $3 million and were included in Other taxes payable. Status of Tax Audits and Potential Impact on Accruals for Uncertain Tax Positions We are subject to taxation in the U.S. including various states, and foreign jurisdictions. The U.S. is one of our major tax jurisdictions, and we are currently under audit for tax years 2017 through 2019. The company has effectively settled its U.S. federal income tax obligations through 2016. For U.S. state tax purposes, tax years 2015 through 2022 are open for examination (see B. Tax Matters Agreement for years prior to 2013). In addition to the open audit years in the U.S., we have open audit years in other major foreign tax jurisdictions, such as Canada (2018-2022), Asia-Pacific (2011-2022, primarily reflecting Australia, China and Japan), Europe (2012-2022, primarily reflecting France, Germany, Italy, Spain and the U.K.) and Latin America (2006-2022, primarily reflecting Brazil and Mexico). Any settlements or statute of limitations expirations could result in a significant decrease in our uncertain tax positions. We do not expect that within the next twelve months any of our gross unrecognized tax benefits, exclusive of interest, could significantly decrease as a result of settlements with taxing authorities or the expiration of the statutes of limitations. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and any variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution. Finalizing audits with the relevant taxing authorities can include formal administrative and legal proceedings, and, as a result, it is difficult to estimate the timing and range of possible change related to our uncertain tax positions, and such changes could be significant.
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Leases |
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| Leases | 10. Leases We have facilities, vehicles and equipment under various non-cancellable operating leases with third parties. These leases generally have remaining terms ranging from 1 to 15 years, inclusive of renewal options that are reasonably certain of exercise. Supplemental information for operating leases is as follows:
Future minimum lease payments under non-cancellable operating lease contracts as of December 31, 2022 are as follows:
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Inventories |
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| Inventories | 11. Inventories The components of inventory follow:
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Property, Plant and Equipment |
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| Property, Plant and Equipment | The components of property, plant and equipment follow:
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Goodwill and Other Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets | he components of, and changes in, the carrying amount of goodwill follow:
(b) Includes adjustments for foreign currency translation. The gross goodwill balance was $3,282 million as of December 31, 2022 and $3,218 million as of December 31, 2021. Accumulated goodwill impairment losses (generated entirely in fiscal 2002) were $536 million as of December 31, 2022 and 2021. B. Other Intangible Assets The components of identifiable intangible assets follow:
Developed Technology Rights Developed technology rights represent the amortized cost associated with developed technology, which has been acquired from third parties and which can include the right to develop, use, market, sell and/or offer for sale the product, compounds and intellectual property that we have acquired with respect to products, compounds and/or processes that have been completed. These assets include technologies related to the care and treatment of dogs, cats, horses, cattle, swine, poultry, fish and sheep. Brands and Tradenames Brands and tradenames represent the amortized or unamortized cost associated with product name recognition, as the products themselves do not receive patent protection and legal trademark and tradenames. The more significant finite-lived brands are Platinum Performance, Lutalyse, and Basepaws and the most significant indefinite-lived brand is the Linco family of products. The more significant finite-lived trademarks and tradenames are finite-lived trademarks and tradenames acquired from Abaxis. The more significant components of indefinite-lived trademarks and tradenames are indefinite-lived trademarks and tradenames acquired from SmithKlineBeecham. In-Process Research and Development IPR&D assets represent R&D assets that have not yet received regulatory approval in a major market. The majority of these IPR&D assets were acquired in connection with our acquisition of an Irish biologic therapeutics company. IPR&D assets are required to be classified as indefinite-lived assets until the successful completion or abandonment of the associated R&D effort. Accordingly, during the development period after the date of acquisition, these assets will not be amortized until approval is obtained in a major market, typically either the U.S. or the EU, or in a series of other countries, subject to certain specified conditions and management judgment. At that time, we will determine the useful life of the asset, reclassify the asset out of IPR&D and begin amortization. If the associated R&D effort is abandoned, the related IPR&D assets will be written-off and we will record an impairment charge. There can be no certainty that IPR&D assets ultimately will yield a successful product. Product Rights Product rights represent product registration and application rights that were acquired from Pfizer in 2014. C. Amortization The weighted average life of our total finite-lived intangible assets is approximately 9 years. Total amortization expense for finite-lived intangible assets was $193 million in 2022, $204 million in 2021 and $230 million in 2020. The annual amortization expense expected for the years 2023 through 2027 is as follows:
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Benefit Plans |
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Plans | Our employees ceased to participate in the Pfizer U.S. qualified defined benefit and U.S. retiree medical plans effective December 31, 2012 and liabilities associated with our employees under these plans were retained by Pfizer. Pfizer continued to credit certain employees' service with Zoetis generally through December 31, 2017 (or termination of employment from Zoetis, if earlier) for certain early retirement benefits with respect to Pfizer's U.S. defined benefit pension and retiree medical plans. In connection with an employee matters agreement between Pfizer and Zoetis, Zoetis is responsible for payment of three-fifths of the total cost of the service credit continuation ($38 million) for these plans and Pfizer is responsible for the remaining two-fifths of the total cost ($25 million). The $25 million capital contribution from Pfizer and corresponding contra-equity account (which is being reduced as the service credit continuation is incurred) is included in Employee benefit plan contribution from Pfizer Inc. in the Consolidated Statements of Equity. The balance in the contra-equity account was $0 million and $3 million as of December 31, 2022 and 2021, respectively. The amount of the service cost continuation payment to be paid by Zoetis to Pfizer was determined and fixed based on an actuarial assessment of the value of the grow-in benefits and is being paid in equal installments over a period of 10 years. As of December 31, 2022, there are no remaining payments due to Pfizer. Pension and postretirement benefit expense associated with the extended service for certain employees in the U.S. plans totaled $6 million per year in 2022 and 2021. Pension expense associated with the U.S. and certain significant international locations (inclusive of service cost grow-in benefits discussed above) totaled $12 million in 2022, $14 million in 2021 and $14 million in 2020. A. International Pension Plans Information about the dedicated pension plans, including the plans transferred to us as part of the separation from Pfizer, is provided in the tables below. Obligations and Funded Status––Dedicated Plans The following table provides an analysis of the changes in the benefit obligations, plan assets and funded status of our dedicated pension plans (including those transferred to us):
(a) Included in Other noncurrent liabilities. Changes in the benefit obligation resulted in a net gain of $27 million in 2022 and $1 million in 2021. Actuarial gains were $6 million ($3 million, net of tax) at December 31, 2022 and actuarial losses were $21 million ($16 million, net of tax) at December 31, 2021. The actuarial gains and losses primarily represent the cumulative difference between the actuarial assumptions and actual return on plan assets, changes in discount rates and changes in other assumptions used in measuring the benefit obligations. These actuarial gains and losses are recognized in Accumulated other comprehensive loss. The actuarial losses will be amortized into net periodic benefit costs over an average period of 6.5 years. Information related to the funded status of selected plans follows:
Net Periodic Benefit Costs––Dedicated Plans The following table provides the net periodic benefit cost associated with dedicated pension plans (including those transferred to us):
Actuarial Assumptions––Dedicated Plans The following table provides the weighted average actuarial assumptions for the dedicated pension plans (including those transferred to us):
The assumptions above are used to develop the benefit obligations at the end of the year and to develop the net periodic benefit cost for the following year. Therefore, the assumptions used to determine the net periodic benefit cost for each year are established at the end of each previous year, while the assumptions used to determine the benefit obligations are established at each year-end. The net periodic benefit cost and the benefit obligations are based on actuarial assumptions that are reviewed on an annual basis. The assumptions are revised based on an annual evaluation of long-term trends, as well as market conditions that may have an impact on the cost of providing retirement benefits. Actuarial and other assumptions for pension plans can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For a description of the risks associated with estimates and assumptions, see Note 3. Significant Accounting Policies—Estimates and Assumptions. Plan Assets—Dedicated Plans The components of plan assets follow:
(a) Fair values are determined based on valuation inputs categorized as Level 1, 2 or 3 (see Note 3. Significant Accounting Policies—Fair Value). Investment plan assets are valued using Level 1 or Level 2 inputs. A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Note 3. Significant Accounting Policies—Estimates and Assumptions. Specifically, the following methods and assumptions were used to estimate the fair value of our pension assets: • Equity commingled funds––observable market prices (Level 1). • Government bonds and other investments––principally observable market prices (Level 2). The long-term target asset allocations and the percentage of the fair value of plans assets for dedicated benefit plans follow:
Zoetis utilizes long-term asset allocation ranges in the management of our plans’ invested assets. Long-term return expectations are developed with input from outside investment consultants based on the company’s investment strategy, which takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and the investment consultant’s view of current and future economic and financial market conditions. As market conditions and other factors change, the targets may be adjusted accordingly and actual asset allocations may vary from the target allocations. The long-term asset allocation ranges reflect the asset class return expectations and tolerance for investment risk within the context of the respective plans’ long-term benefit obligations. These ranges are supported by an analysis that incorporates historical and expected returns by asset class, as well as volatilities and correlations across asset classes and our liability profile. This analysis, referred to as an asset-liability analysis, also provides an estimate of expected returns on plan assets, as well as a forecast of potential future asset and liability balances. The investment consultants review investment performance with Zoetis on a quarterly basis in total, as well as by asset class, relative to one or more benchmarks. Cash Flows—Dedicated Plans Our plans are generally funded in amounts that are at least sufficient to meet the minimum requirements set forth in applicable employee benefit laws and local tax and other laws. We expect to contribute approximately $5 million to our dedicated pension plans in 2023. Benefit payments are expected to be approximately $4 million for 2023, $5 million for 2024, $6 million for 2025, $11 million for 2026 and $7 million for 2027. Benefit payments are expected to be approximately $49 million in the aggregate for the five years thereafter. These expected benefit payments reflect the future plan benefits subsequent to 2023 projected to be paid from the plans or from the general assets of Zoetis entities under the current actuarial assumptions used for the calculation of the projected benefit obligation and, therefore, actual benefit payments may differ from projected benefit payments. B. Postretirement Plans Postretirement benefit expense associated with these U.S. retiree medical plans totaled $4 million per year in 2022, 2021 and 2020 (inclusive of service cost grow-in benefits discussed above). C. Defined Contribution Plans Zoetis has a voluntary defined contribution plan, the Zoetis Savings Plan (ZSP) that allows participation by substantially all U.S. employees. Zoetis matches 100% of employee contributions, up to a maximum of 5% of each employee’s eligible compensation. The ZSP also includes a profit-sharing feature that provides for an additional contribution ranging between 0 and 8 percent of each employee’s eligible compensation. All eligible employees receive the profit-sharing contribution regardless of the amount they choose to contribute to the ZSP. The profit-sharing contribution is a discretionary amount provided by Zoetis and is determined on an annual basis. Employees can direct their contributions and the company's matching and profit-sharing contributions into any of the funds offered. These funds provide participants with a cross section of investing options, including the Zoetis stock fund. The matching and profit-sharing contributions are cash funded. Employees are permitted to diversify all or any portion of their company matching or profit-sharing contribution. Once the contributions have been paid, Zoetis has no further payment obligations. Contribution expense, associated with the ZSP, totaled $57 million in 2022, $54 million in 2021 and $48 million in 2020. Employees in the U.S. who meet certain eligibility requirements participate in a supplemental (non-qualified) savings plan sponsored by Zoetis. The (benefit)/cost of the supplemental savings plan was $(9) million in 2022, $12 million in 2021 and $11 million in 2020. Benefit payments for this plan are expected to be approximately $4 million in 2023 and $39 million thereafter.
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Share-Based Payments |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payments | The Zoetis 2013 Equity and Incentive Plan (Equity Plan) provides long-term incentives to our employees and non-employee directors. The principal types of share-based awards available under the Equity Plan may include, but are not limited to, stock options, restricted stock and restricted stock units (RSUs), deferred stock units (DSUs), performance-vesting restricted stock units (PSUs), and other equity-based or cash-based awards. Thirty million shares of stock were approved and registered with the Securities and Exchange Commission for grants to participants under the Equity Plan. The shares reserved may be used for any type of award under the Equity Plan. At December 31, 2022, the aggregate number of remaining shares available for future grant under the Equity Plan was approximately 14 million shares. A. Share-Based Compensation Expense The components of share-based compensation expense follow:
(a) For each of the years ended December 31, 2022, 2021 and 2020, we capitalized less than $1 million of share-based compensation expense to inventory. B. Stock Options Stock options represent the right to purchase shares of our common stock within a specified period of time at a specified price. The exercise price for a stock option will be not less than 100% of the fair market value of the common stock on the date of grant. Stock options granted may include those intended to be “incentive stock options” within the meaning of Section 422 of the U.S. Internal Revenue Code of 1986 (the Code). Stock options are accounted for using a fair-value-based method at the date of grant in the Consolidated Statements of Income. The values determined through this fair-value-based method generally are amortized on a straight-line basis over the vesting term. Eligible employees may receive Zoetis stock option awards. Zoetis stock option awards generally vest after three years of continuous service from the date of grant and have a contractual term of 10 years. The fair-value-based method for valuing each Zoetis stock option grant on the grant date uses the Black-Scholes-Merton option-pricing model, which incorporates a number of valuation assumptions noted in the following table, shown at their weighted-average values:
(a) Determined using a constant dividend yield during the expected term of the Zoetis stock option. (b) Determined using the interpolated yield on U.S. Treasury zero-coupon issues. (c) Determined using an equal weighting between historical volatility of the Zoetis stock price and implied volatility. The selection of the blended historical and implied volatility approach was based on our assessment that this calculation of expected volatility is more representative of future stock price trends. (d) Determined using expected exercise and post-vesting termination patterns. The following table provides an analysis of stock option activity for the year ended December 31, 2022:
(a) Market price of underlying Zoetis common stock less exercise price. As of December 31, 2022, there was approximately $10 million of unrecognized compensation costs related to nonvested stock options, which will be recognized over an expected remaining weighted-average period of one year. The following table summarizes data related to stock option activity:
C. Restricted Stock Units (RSUs) Restricted stock units represent the right to receive a share of our common stock that is subject to a risk of forfeiture until the restrictions lapse at the end of the vesting period subject to the recipient's continued employment. RSUs accrue dividend equivalent units and are paid in shares of our common stock upon vesting (or cash determined by reference to the value of our common stock). RSUs are accounted for using a fair-value-based method that utilizes the closing price of Zoetis common stock on the date of grant. Zoetis RSUs generally vest after three years of continuous service from the grant date and the values are amortized on a straight-line basis over the vesting term. The following table provides an analysis of RSU activity for the year ended December 31, 2022:
As of December 31, 2022, there was approximately $45 million of unrecognized compensation costs related to nonvested RSUs, which will be recognized over an expected remaining weighted-average period of one year. D. Deferred Stock Units (DSUs) Deferred stock units, which were granted to non-employee compensated Directors in 2013 and 2014, represent the right to receive shares of our common stock at a future date. The DSU awards will be automatically settled and paid in shares within 60 days following the Director’s separation from service on the Board of Directors. DSUs are accounted for using a fair-value-based method that utilizes the closing price of Zoetis common stock on the date of grant. DSUs vested immediately as of the grant date and the values were expensed at the time of grant into Selling, general and administrative expenses. For the years ended December 31, 2022 and 2021, there were no DSUs granted. As of December 31, 2022 and 2021, there were 65,071 and 64,599 DSUs outstanding, respectively, including dividend equivalents. E. Performance-Vesting Restricted Stock Units (PSUs) Performance-vesting restricted stock units, which are granted to eligible senior management, represent the right to receive a share of our common stock that is subject to a risk of forfeiture until the restrictions lapse, which include continued employment through the end of the vesting period and the attainment of performance goals. PSUs represent the right to receive shares of our common stock in the future (or cash determined by reference to the value of our common stock). PSUs are accounted for using a Monte Carlo simulation model. The units underlying the PSUs will be earned and vested over a three-year performance period, based upon the total shareholder return of the company in comparison to the total shareholder return of the companies comprising the S&P 500 index at the start of the performance period, excluding companies that during the performance period are acquired or are no longer publicly traded (Relative TSR). The weighted-average fair value was estimated based on volatility assumptions of Zoetis common stock and an average of peer companies, which were 28.4% and 38.1%, respectively, in 2022, and 28.9% and 38.1%, respectively, in 2021. Depending on the company’s Relative TSR performance at the end of the performance period, the recipient may earn between 0% and 200% of the target number of units. Vested units, including dividend equivalent units, are paid in shares of the company’s common stock. PSU values are amortized on a straight-line basis over the vesting term. On October 3, 2019, the Company announced the retirement of Juan Ramón Alaix as Chief Executive Officer (“CEO”) effective December 31, 2019. As a result of Mr. Alaix’s retirement as CEO, a transition services letter agreement was entered into between the Company and Mr. Alaix. The letter agreement stipulates that any nonvested equity awards as of his retirement date would continue to vest according to their original vesting schedule. As a result of this change, 37,265 of nonvested PSUs granted as part of his 2018 and 2019 equity grants were modified resulting in $8 million to be recognized through December 31, 2020. During the years ended December 31, 2020 and 2019, the company recognized $6 million and $2 million, respectively, of expense related to share-based compensation in connection with Mr. Alaix's retirement. The following table provides an analysis of PSU activity for the year ended December 31, 2022:
As of December 31, 2022, there was approximately $25 million of unrecognized compensation costs related to nonvested PSUs, which will be recognized over an expected remaining weighted-average period of 1.2 years. F. Other Equity-Based or Cash-Based Awards Our Compensation Committee is authorized to grant awards in the form of other equity-based awards or other cash-based awards, as deemed to be consistent with the purposes of the Equity Plan.
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Stockholders' Equity |
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| Stockholders' Equity Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity | Zoetis is authorized to issue 6 billion shares of common stock and 1 billion shares of preferred stock. In December 2018, our Board of Directors authorized a $2.0 billion share repurchase program. This program was completed as of June 30, 2022. In December 2021, our Board of Directors authorized an additional $3.5 billion share repurchase program. As of December 31, 2022, there was $2.6 billion remaining under this authorization. Purchases of Zoetis shares may be made at the discretion of management, depending on market conditions and business needs. Accumulated other comprehensive loss Changes, net of tax, in accumulated other comprehensive loss, excluding noncontrolling interest, follow:
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Earnings Per Share |
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| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings per Share | following table presents the calculation of basic and diluted earnings per share:
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | 18. Commitments and Contingencies We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business. For a discussion of our tax contingencies, see Note 8. Tax Matters. A. Legal Proceedings Our non-tax contingencies include, among others, the following: • Product liability and other product-related litigation, which can include injury, consumer, off-label promotion, antitrust and breach of contract claims. • Commercial and other matters, which can include product-pricing claims and environmental claims and proceedings. • Patent litigation, which typically involves challenges to the coverage and/or validity of our patents or those of third parties on various products or processes. • Government investigations, which can involve regulation by national, state and local government agencies in the U.S. and in other countries. Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, and/or criminal charges, which could be substantial. We believe that we have strong defenses in these types of matters, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations or cash flows in the period in which the amounts are paid. We have accrued for losses that are both probable and reasonably estimable. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. The principal matters to which we are a party are discussed below. In determining whether a pending matter is significant for financial reporting and disclosure purposes, we consider both quantitative and qualitative factors in order to assess materiality, such as, among other things, the amount of damages and the nature of any other relief sought in the proceeding, if such damages and other relief are specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be a class action and our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information about the company that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters, we consider, among other things, the financial significance of the product protected by the patent. Ulianopolis, Brazil In February 2012, the Municipality of Ulianopolis (State of Para, Brazil) filed a complaint against Fort Dodge Saúde Animal Ltda. (FDSAL), a Zoetis entity, and five other large companies alleging that waste sent to a local waste incineration facility for destruction, but that was not ultimately destroyed as the facility lost its operating permit, caused environmental impacts requiring cleanup. The Municipality is seeking recovery of cleanup costs purportedly related to FDSAL's share of all waste accumulated at the incineration facility awaiting destruction, and compensatory damages to be allocated among the six defendants. We believe we have strong arguments against the claim, including defense strategies against any claim of joint and several liability. At the request of the Municipal prosecutor, in April 2012, the lawsuit was suspended for one year. Since that time, the prosecutor has initiated investigations into the Municipality's actions in the matter as well as the efforts undertaken by the six defendants to remove and dispose of their individual waste from the incineration facility. On October 3, 2014, the Municipal prosecutor announced that the investigation remained ongoing and outlined the terms of a proposed Term of Reference (a document that establishes the minimum elements to be addressed in the preparation of an Environmental Impact Assessment), under which the companies would be liable to withdraw the waste and remediate the area. On March 5, 2015, we presented our response to the prosecutor’s proposed Term of Reference, arguing that the proposed terms were overly general in nature and expressing our interest in discussing alternatives to address the matter. The prosecutor agreed to consider our request to engage a technical consultant to conduct an environmental diagnostic of the contaminated area. On May 29, 2015, we, in conjunction with the other defendant companies, submitted a draft cooperation agreement to the prosecutor, which outlined the proposed terms and conditions for the engagement of a technical consultant to conduct the environmental diagnostic. On August 19, 2016, the parties and the prosecutor agreed to engage the services of a third-party consultant to conduct a limited environmental assessment of the site. The site assessment was conducted during June 2017, and a written report summarizing the results of the assessment was provided to the parties and the prosecutor in November 2017. The report noted that waste is still present on the site and that further (Phase II) environmental assessments are needed before a plan to manage that remaining waste can be prepared. On April 1, 2019, the defendants met with the Prosecutor to discuss the conclusions set forth in the written report. Following that discussion, on April 10, 2019, the Prosecutor issued a procedural order requesting that the defendants prepare and submit a technical proposal outlining the steps needed to conduct the additional Phase II environmental assessments. The defendants presented the technical proposal to the Prosecutor on October 21, 2019. On March 3, 2020, the Prosecutor notified the defendants that he submitted the proposal to the Ministry of the Environment for its review and consideration by the Prosecutor. On July 15, 2020, the Prosecutor recommended certain amendments to the proposal for the Phase II testing. On September 28, 2020, the parties and the Prosecutor agreed to the final terms and conditions concerning the cooperation agreement with respect to the Phase II testing. Due to the ongoing issues presented by the coronavirus (COVID-19) pandemic, the parties have been unable to secure a start date for the Phase II testing and have no timeline at this point when testing will begin. Lascadoil Contamination in Animal Feed An investigation by the U.S. Food and Drug Administration (FDA) and the Michigan Department of Agriculture into the alleged contamination of the feed supply of certain turkey and hog feed mills in Michigan led to the recall of certain batches of soy oil (intended for use as an animal feed additive) that had originated with Shur-Green Farms LLC, a producer of soy oil, and that had been contaminated with lascadoil, an industrial by-product of certain Zoetis manufacturing processes. The contaminated feed is believed to have caused the deaths of approximately 50,000 turkeys and the contamination (but not death) of at least 20,000 hogs in August 2014. The investigation posited that Shur-Green inadvertently contaminated soy oil with lascadoil which it purchased from Zoetis for use as a bio-fuel ingredient, and then sold the contaminated soy oil to fat recycling vendors, who in turn unknowingly sold to feed mills for use in animal feed. During the course of its investigation, the FDA identified the process used to manufacture Zoetis’ Avatec® (lasalocid sodium) and Bovatec® (lasalocid sodium) products as the possible source of the lascadoil, since lascadoil contains small amounts of lasalocid, the active ingredient found in both products. Zoetis sold the industrial lascadoil byproduct to Shur-Green, through its broker, Heritage Interactive Services, LLC. Under the terms of the sale agreement, the lascadoil could only be incinerated or resold for use in biofuel, and the agreement expressly prohibited the reselling of lascadoil for use as a component in food. The FDA inspected the Zoetis site where Avatec and Bovatec are manufactured, and found no evidence that Zoetis was involved in the contamination of the animal feed. On March 10, 2015, plaintiffs Restaurant Recycling, LLC (Restaurant Recycling) and Superior Feed Ingredients, LLC (Superior), both of whom are in the fat recycling business, filed a complaint in the Seventeenth Circuit Court for the State of Michigan against Shur-Green Farms alleging negligence and breach of warranty claims arising from their purchase of soy oil allegedly contaminated with lascadoil. Plaintiffs resold the allegedly contaminated soy oil to turkey feed mills for use in feed ingredient. Plaintiffs also named Zoetis as a defendant in the complaint alleging that Zoetis failed to properly manufacture its products and breached an implied warranty that the soy oil was fit for use at turkey and hog mills. Zoetis was served with the complaint on June 3, 2015, and we filed our answer, denying all allegations, on July 15, 2015. On August 10, 2015, several of the turkey feed mills filed a joint complaint against Restaurant Recycling, Superior, Shur-Green Farms and others, alleging claims for negligence, misrepresentation, and breach of warranty, arising out of their alleged purchase and use of the contaminated soy oil. The complaint raises only one count against Zoetis for negligence. We filed an answer to the complaint on November 2, 2015, denying the allegation. On May 16, 2016, two additional turkey producers filed a complaint in the Seventeenth Circuit Court for the State of Michigan against the company, Restaurant Recycling, Superior, Shur-Green Farms and others, alleging claims for negligence and breach of warranties. We filed an answer to the complaint on June 20, 2016, denying the allegations. The Court has consolidated all three cases in Michigan for purposes of discovery and disposition. On July 28, 2017, we filed a motion for summary disposition on the grounds that no genuine issues of material fact exist and that Zoetis is entitled to judgment as a matter of law. On October 19, 2017, the Court granted our motion and dismissed all claims against Zoetis. On October 31, 2017, the plaintiffs filed motions for reconsideration of the Court’s decision granting summary disposition. The Court denied all such motions on December 6, 2017, for the same reasons cited in the Court’s original decision. On December 27, 2017, the plaintiffs filed a request with the Michigan Court of Appeals seeking an interlocutory (or interim) appeal of the lower Court’s decision, which we opposed on January 17, 2018. On July 5, 2018, the Court of Appeals denied the plaintiffs’ request for an interlocutory appeal. The case was remanded back to the lower Court, where it was scheduled to proceed to trial by jury. We have been advised that the remaining parties have reached an agreement to settle the dispute, and on June 24, 2020, the remaining parties jointly stipulated to the dismissal of all remaining claims. On July 13, 2020, Plaintiffs filed a claim of appeal with Michigan Court of Appeals seeking reversal of the lower Court’s decision granting Zoetis’ motion for summary disposition. Plaintiffs’ filed their appeal brief on October 29, 2020, and we filed our reply brief on December 3, 2020. The Court of Appeals heard oral arguments on December 7, 2021. On September 15, 2022, the Court of Appeals affirmed the lower Court’s ruling in favor of Zoetis. The plaintiffs do not have an automatic right to appeal the decision of the Court of Appeals; rather, they must petition the Supreme Court of Michigan for leave to appeal further. On October 27, 2022, the plaintiffs filed an application to the Michigan Supreme Court for leave to appeal the Court of Appeals' opinion. We opposed the plaintiff's application for leave to file an appeal on November 22, 2022. The plaintiffs filed a reply to our opposition on December 16, 2022. On January 31, 2023, the Michigan Supreme Court denied the plaintiffs' request for leave to file an appeal, effectively ending the matter. Belgium Excess Profit Tax Regime On February 14, 2019, the General Court of the European Union (General Court) annulled the January 11, 2016 decision of the European Commission (EC) that selective tax advantages granted by Belgium under its "excess profit" tax scheme constitute illegal state aid. As a result of the 2016 decision, the company recorded a net tax charge of approximately $35 million in the first half of 2016. On May 8, 2019, the EC filed an appeal to the decision of the General Court. On September 16, 2019, the EC opened separate in-depth investigations to assess whether Belgium excess profit rulings granted to 39 multinational companies, including Zoetis, constituted state aid for those companies. On September 16, 2021, the European Court of Justice upheld the EC’s decision that the Belgium excess profit ruling system is considered an aid scheme and referred the case back to the General Court to rule on open questions. On May 24, 2022, the General Court resumed all proceedings involved with the Excess Profit Rulings cases, including Zoetis. On June 23, 2022, as requested by the General Court, the company provided observations in relations to (i) the impact of the Court of Justice’s decision that the Belgium excess profit ruling system is considered an aid scheme and (ii) the impact of recent case laws by the General Court with regards to the existence of a selective advantage. On December 16, 2022, the company submitted observations on the conclusions drawn from the November 8, 2022 Fiat Chrysler Finance Europe and Ireland v Commission judgement, as requested by the General Court. A hearing has been scheduled by the General Court for February 15, 2023. The company has not reflected any potential benefits in its consolidated financial statements as of December 31, 2022 as a result of the 2019 annulment. We will continue to monitor the developments of the appeal and its ultimate resolution. B. Guarantees and Indemnifications In the ordinary course of business and in connection with the sale of assets and businesses, we indemnify our counterparties against certain liabilities that may arise in connection with the transaction or related to activities prior to the transaction. These indemnifications typically pertain to environmental, tax, employee and/or product-related matters and patent-infringement claims. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we would be required to reimburse the loss. These indemnifications are generally subject to threshold amounts, specified claim periods and other restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of December 31, 2022, recorded amounts for the estimated fair value of these indemnifications were not material. C. Purchase Commitments As of December 31, 2022, we have agreements totaling $321 million to purchase goods and services that are enforceable and legally binding and include amounts relating to contract manufacturing, information technology services and potential milestone payments deemed reasonably likely to occur. Payments for these obligations are expected to be approximately $173 million in 2023 and $148 million thereafter.
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Segment Information |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | We manage our operations through two geographic regions. Each operating segment has responsibility for its commercial activities. Within each of these operating segments, we offer a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, other pharmaceutical products, medicated feed additives and animal health diagnostics, for both companion animal and livestock customers. In 2021, certain costs associated with information technology that specifically support our global manufacturing operations, which were previously reported in Other unallocated, are now reported in Corporate. In addition, in the first quarter of 2021, the company realigned certain management responsibilities. These changes did not impact the determination of our operating segments, however they resulted in the reallocation of certain costs between segments. These changes primarily include the following: (i) certain diagnostics costs, which were previously reported in Corporate, are now reported in our U.S. results; and (ii) certain other miscellaneous costs, which were previously reported in our U.S. results, are now reported in Corporate. Operating Segments Our operating segments are the U.S. and International. Our chief operating decision maker uses the revenue and earnings of the two operating segments, among other factors, for performance evaluation and resource allocation. Other Costs and Business Activities Certain costs are not allocated to our operating segment results, such as costs associated with the following: • Other business activities, includes our CSS contract manufacturing results, our human health business, and expenses associated with our dedicated veterinary medicine research and development organization, research alliances, U.S. regulatory affairs and other operations focused on the development of our products. Other R&D-related costs associated with non-U.S. market and regulatory activities are generally included in the international commercial segment. • Corporate, includes enabling functions such as information technology, facilities, legal, finance, human resources, business development, certain diagnostic costs and communications, among others. These costs also include compensation costs and other miscellaneous operating expenses not charged to our operating segments, as well as interest income and expense. • Certain transactions and events such as (i) Purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) Acquisition-related activities, where we incur costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs; and (iii) Certain significant items, which comprise substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis, such as restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives that are not associated with an acquisition, certain asset impairment charges, certain legal and commercial settlements and the impact of divestiture-related gains and losses. •Other unallocated includes (i) certain overhead expenses associated with our global manufacturing operations not charged to our operating segments; (ii) certain costs associated with finance that specifically support our global manufacturing operations; (iii) certain supply chain and global logistics costs; and (iv) procurement costs. Segment Assets We manage our assets on a total company basis, not by operating segment. Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $14.9 billion and $13.9 billion at December 31, 2022 and 2021, respectively. Selected Statement of Income Information
(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 $774 million in 2022, $814 million in 2021 and $718 million in 2020. (c) 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. For 2020, certain significant items primarily included certain asset impairment charges of $37 million and CEO transition-related costs of $16 million, partially offset by a net gain resulting from a cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites of $18 million. (d) Defined as income before provision for taxes on income. B. Geographic Information Property, plant and equipment, less accumulated depreciation, by geographic region follow:
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Schedule II - Valuation and Qualifying Accounts |
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| Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts
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Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2022 | |
| Accounting Policies [Abstract] | |
| Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, it issued subsequent amendments to the initial guidance: ASU No. 2021-01 and ASU No. 2022-06, Reference Rate Reform (Topic 848). The new guidance provides temporary optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Adoption of the guidance is optional and effective as of March 12, 2020, but only available through December 31, 2024. We currently have various hedging transactions that reference LIBOR. We will make specific amendments to our affected contracts and hedge documentation to adopt these standards during the transition period and we do not expect these changes to have a material impact on our consolidated financial statements or related disclosures.
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| Estimates and Assumptions | Estimates and Assumptions In preparing the consolidated financial statements, we use certain estimates and assumptions that affect reported amounts and disclosures, including amounts recorded in connection with acquisitions. These estimates and underlying assumptions can impact all elements of our consolidated financial statements. For example, in the Consolidated Statements of Income, estimates are used when accounting for deductions from revenue (such as rebates, sales allowances, product returns and discounts), determining cost of sales, allocating cost in the form of depreciation and amortization, and estimating restructuring charges and the impact of contingencies. On the Consolidated Balance Sheets, estimates are used in determining the valuation and recoverability of assets, such as accounts receivables, inventories, fixed assets, goodwill and other identifiable intangible assets, and estimates are used in determining the reported amounts of liabilities, such as taxes payable, uncertain tax positions, benefit obligations, the impact of contingencies, deductions from revenue and restructuring reserves, all of which also impact the Consolidated Statements of Income. Our estimates are often based on complex judgments, probabilities and assumptions that we believe to be reasonable but that can be inherently uncertain and unpredictable. If our estimates and assumptions are not representative of actual outcomes, our results could be materially impacted. As future events and their effects cannot be determined with precision, our estimates and assumptions may prove to be incomplete or inaccurate, or unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. We are subject to risks and uncertainties that may cause actual results to differ from estimated amounts, such as changes in competition, litigation, legislation and regulations. We regularly evaluate our estimates and assumptions using historical experience and expectations about the future. We adjust our estimates and assumptions when facts and circumstances indicate the need for change. Those changes generally will be reflected in our consolidated financial statements on a prospective basis unless they are required to be treated retrospectively under relevant accounting standards. It is possible that others, applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts.
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| Acquisitions | Acquisitions Our consolidated financial statements include the operations of acquired businesses from the date of acquisition. We account for acquired businesses using the acquisition method of accounting, which requires, among other things, that most assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date and that the fair value of acquired in-process research and development (IPR&D) be recorded on the balance sheet. Transaction costs are expensed as incurred. Any excess of the consideration transferred over the assigned values of the net assets acquired is recorded as goodwill. When we acquire net assets that do not constitute a business as defined in U.S. GAAP, no goodwill is recognized. Amounts recorded for acquisitions can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Lessee, Leases [Policy Text Block] | Leases We determine if a contract contains a lease at inception. Our current portfolio includes only operating leases which are recorded as a right of use asset, as of the lease commencement date, in an amount equal to the present value of future payments over the lease term. We have elected not to recognize right of use assets and lease liabilities for short-term leases of vehicles and equipment with a lease term of twelve months or less. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. A corresponding lease liability is recorded within Other current liabilities and Operating lease liabilities. The present value of future payments is discounted using the rate implicit in the lease, when available. When the implicit rate is not available, as is frequently the case with our lease portfolio, the present value is calculated using our incremental borrowing rate, which is determined on the commencement date. The incremental borrowing rate represents the rate of interest that we would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. As we do not borrow on a collateralized basis, our non-collateralized borrowing rate is used as an input in deriving the incremental borrowing rate. Fixed lease payments are recognized on straight-line basis over the lease term, while variable payments are recognized in the period incurred. Variable lease payments include real estate taxes and charges for other non-lease services due to lessors that are not dependent on an index or rate and utilization based charges associated with fleet vehicles. Our real estate and fleet lease contracts may include fixed consideration attributable to both lease and non-lease components, including non-lease services provided by the vendor, which are accounted for as a single fixed minimum payment. For leases of certain classes of machinery and equipment, contract consideration is allocated to lease and non-lease components on the basis of relative standalone price.
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| Foreign Currency Translation | Foreign Currency TranslationFor most of our international operations, local currencies have been determined to be the functional currencies. We translate functional currency assets and liabilities to their U.S. dollar equivalents at exchange rates in effect at the balance sheet date and we translate functional currency income and expense amounts to their U.S. dollar equivalents at average exchange rates for the period. The U.S. dollar effects that arise from changing translation rates are recorded in Other comprehensive income/(loss), net of tax. The effects of converting non-functional currency assets and liabilities into the functional currency are recorded in Other (income)/deductions––net. For operations in highly inflationary economies, we translate monetary items at rates in effect at the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates. |
| Revenue, Deductions form Revenue and the Allowance for Doubtful Accounts | Revenue, Deductions from Revenue and the Allowance for Doubtful Accounts We recognize revenue from product sales when control of the goods has transferred to the customer, which is typically once the goods have shipped and the customer has assumed title. Revenue reflects the total consideration to which we expect to be entitled (i.e., the transaction price), in exchange for products sold, after considering various types of variable consideration including rebates, sales allowances, product returns and discounts. Variable consideration is estimated and recorded at the time that related revenue is recognized. Our estimates reflect the amount by which we expect variable consideration to impact revenue recognized and are generally based on contractual terms or historical experience, adjusted as necessary to reflect our expectations about the future. Our customer payment terms generally range from 30 to 90 days. Estimates of variable consideration utilize a complex series of judgments and assumptions to determine the amount by which we expect revenue to be reduced, for example; •for sales returns, we perform calculations in each market that incorporate the following, as appropriate: local returns policies and practices; historic returns as a percentage of revenue; estimated shelf life by product; an estimate of the amount of time between shipment and return or lag time; and any other factors that could impact the estimate of future returns, product recalls, discontinuation of products or a changing competitive environment; and •for revenue incentives, we use our historical experience with similar incentives programs to estimate the impact of such programs on revenue for the current period. Although the amounts recorded for these deductions from revenue are dependent on estimates and assumptions, historically our adjustments to actual results have not been material. The sensitivity of our estimates can vary by program, type of customer and geographic location. Accruals for deductions from revenue are recorded as either a reduction in Accounts receivable or within Accrued expenses, depending on the nature of the contract and method of expected payment. Amounts recorded as a reduction in Accounts receivable as of December 31, 2022 and 2021 are approximately $295 million and $216 million, respectively. As of December 31, 2022, and 2021, accruals for deductions from revenue included in Accrued expenses are approximately $285 million and $312 million, respectively. A deferral of revenue may be required in the event that we have not satisfied all customer obligations for which we have been compensated. The transaction price is allocated to the individual performance obligations on the basis of relative stand-alone selling price, which is typically based on actual sales prices. Revenue associated with unsatisfied performance obligations are contract liabilities, is recorded within Other current liabilities and Other noncurrent liabilities, and is recognized once control of the underlying products has transferred to the customer. Contract liabilities reflected within Other current liabilities as of December 31, 2021 and subsequently recognized as revenue during 2022 were approximately $5 million. Contract liabilities as of December 31, 2022 were approximately $14 million. We do not disclose the transaction price allocated to unsatisfied performance obligations related to contracts with an original expected duration of one year or less, or for contracts for which we recognize revenue in line with our right to invoice the customer. Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of December 31, 2022 is not material. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from Revenue. Shipping and handling costs incurred after control of the purchased product has transferred to the customer are accounted for as a fulfillment cost, within Selling, general and administrative expenses. We also record estimates for bad debts. We periodically assess the adequacy of the allowance for doubtful accounts by evaluating the collectability of outstanding receivables based on factors such as past due history, historical and expected collection patterns, the financial condition of our customers, the robust nature of our credit and collection practices and the economic environment. Amounts recorded for sales deductions and bad debts can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Cost of Sales and Inventories | Cost of Sales and InventoriesInventories are carried at the lower of cost or net realizable value. The cost of finished goods, work-in-process and raw materials is determined using average actual cost. We regularly review our inventories for impairment and adjustments are recorded when necessary. |
| Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative costs are expensed as incurred. Among other things, these expenses include the internal and external costs of marketing, advertising, and shipping and handling as well as certain costs related to business technology, facilities, legal, finance, human resources, business development, public affairs and procurement, among others. Advertising expenses relating to production costs are expensed as incurred, and the costs of space in publications are expensed when the related advertising occurs. Advertising and promotion expenses totaled approximately $287 million in 2022, $292 million in 2021 and $233 million in 2020. Shipping and handling costs totaled approximately $82 million in 2022, $80 million in 2021 and $66 million in 2020.
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| Research and Development Expenses | Research and Development ExpensesResearch and development (R&D) costs are expensed as incurred. Research is the effort associated with the discovery of new knowledge that will be useful in developing a new product or in significantly improving an existing product. Development is the implementation of the research findings. Before a compound receives regulatory approval, we record upfront and milestone payments made by us to third parties under licensing arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone has been achieved. Once a compound receives regulatory approval in a major market, we record any milestone payments in Identifiable intangible assets, less accumulated amortization and, unless the assets are determined to have an indefinite life, we amortize them on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. |
| Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets | Amortization of Intangible Assets, Depreciation and Certain Long-Lived Assets Long-lived assets include: • Goodwill—goodwill represents the excess of the consideration transferred for an acquired business over the assigned values of its net assets. Goodwill is not amortized. • Identifiable intangible assets, less accumulated amortization—these acquired assets are recorded at our cost. Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Identifiable intangible assets with indefinite lives that are associated with marketed products are not amortized until a useful life can be determined. Identifiable intangible assets associated with IPR&D projects are not amortized until regulatory approval is obtained. The useful life of an amortizing asset generally is determined by identifying the period in which substantially all of the cash flows are expected to be generated. • Property, plant and equipment, less accumulated depreciation––these assets are recorded at our cost and are increased by the cost of any significant improvements after purchase. Property, plant and equipment assets, other than land and construction-in-progress, are depreciated on a straight-line basis over the estimated useful life of the individual assets. Depreciation begins when the asset is ready for its intended use. For tax purposes, accelerated depreciation methods are used as allowed by tax laws. Amortization expense related to finite-lived identifiable intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property are included in Amortization of intangible assets as they benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function and depreciation of property, plant and equipment are included in Cost of sales, Selling, general and administrative expenses and Research and development expenses, as appropriate. We review all of our long-lived assets for impairment indicators throughout the year and we perform detailed testing whenever impairment indicators are present. In addition, we perform impairment testing for goodwill and indefinite-lived assets at least annually. When necessary, we record charges for impairments. Specifically: • For finite-lived identifiable intangible assets, such as developed technology rights, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we calculate the undiscounted value of the projected cash flows associated with the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is found to be greater, we record an impairment loss for the excess of book value over fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate. • For indefinite-lived identifiable intangible assets, such as brands and IPR&D assets, we test for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If we conclude it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the indefinite-lived intangible asset with its carrying value is performed. If the fair value is less than the carrying amount, an impairment loss is recognized. We record an impairment loss, if any, for the excess of book value over fair value. In addition, in all cases of an impairment review other than for IPR&D assets, we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. • For goodwill, we test for impairment on at least an annual basis, or more frequently if necessary, either by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or by performing a periodic quantitative assessment. If we choose to perform a qualitative analysis and conclude it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed. We determine the implied fair value of goodwill by subtracting the fair value of all the identifiable net assets other than goodwill from the fair value of the reporting unit and record an impairment loss for the excess, if any, of book value of goodwill over the implied fair value. In 2022 and 2021, we performed a periodic quantitative impairment assessment as of September 30, 2022 and 2021, respectively, which did not result in the impairment of goodwill associated with any of our reporting units. Impairment reviews can involve a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Software Capitalization and Depreciation | Software Capitalization and DepreciationWe capitalize certain costs incurred in connection with obtaining or developing internal-use software, including payroll and payroll-related costs for employees who are directly associated with the internal-use software project, external direct costs of materials and services and interest costs while developing the software. Capitalized software costs are included in Property, plant and equipment and are amortized using the straight-line method over the estimated useful life of 5 to 10 years. Capitalization of such costs ceases when the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages, as well as software maintenance and training costs, are expensed in the period in which they are incurred. The company capitalized $57 million and $73 million of internal-use software for the years ended December 31, 2022 and 2021, respectively. Depreciation expense for capitalized software was $69 million in 2022, $52 million in 2021 and $46 million in 2020. |
| Restructuring Charges and Certain Acquisition-Related Costs | Restructuring Charges and Certain Acquisition-Related Costs We may incur restructuring charges in connection with acquisitions when we implement plans to restructure and integrate the acquired operations or in connection with cost-reduction and productivity initiatives. Included in Restructuring charges and certain acquisition-related costs are all restructuring charges and certain costs associated with acquiring and integrating an acquired business. Transaction costs and integration costs are expensed as incurred. Termination costs are a significant component of restructuring charges and are generally recorded when the actions are probable and estimable. Amounts recorded for restructuring charges and other associated costs can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income attributable to Zoetis by the weighted-average number of common shares outstanding during the period. Diluted earnings per share adjusts the weighted-average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units, and performance-vesting restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method.
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| Cash Equivalents | Cash EquivalentsCash equivalents include items almost as liquid as cash, such as money market funds, certificates of deposit and time deposits with maturity periods of three months or less when purchased. |
| Fair Value | Fair Value Certain assets and liabilities are required to be measured at fair value, either upon initial recognition or for subsequent accounting or reporting. For example, we use fair value extensively in the initial recognition of net assets acquired in a business combination. Fair value is estimated using an exit price approach, which requires, among other things, that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market. The determination of an exit price is considered from the perspective of market participants, considering the highest and best use of assets and, for liabilities, assuming that the risk of non-performance will be the same before and after the transfer. When estimating fair value, depending on the nature and complexity of the asset or liability, we may use one or all of the following approaches: • Income approach, which is based on the present value of a future stream of net cash flows. • Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities. • Cost approach, which is based on the cost to acquire or construct comparable assets less an allowance for functional and/or economic obsolescence. These fair value methodologies depend on the following types of inputs: • Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). • Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). • Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Accounts Receivable | Accounts Receivable The recorded amounts of accounts receivable approximate fair value because of their relatively short-term nature. As of December 31, 2022 and 2021, Accounts receivable, less allowance for doubtful accounts, of $1,215 million and $1,133 million, respectively, includes approximately $71 million and $47 million, respectively, of other receivables, such as trade notes receivable and royalty receivables, among others. |
| Deferred Tax Assets and Liabilities and Income Tax Contingencies | ferred Tax Assets and Liabilities and Income Tax Contingencies Deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates and laws. We provide a valuation allowance when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent and feasible tax planning strategies. We account for income tax contingencies using a benefit recognition model. If we consider that a tax position is more likely than not to be sustained upon audit, based solely on the technical merits of the position, we recognize the benefit. We measure the benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. Under the benefit recognition model, if the initial assessment fails to result in the recognition of a tax benefit, we regularly monitor our position and subsequently recognize the tax benefit: (i) if there are changes in tax law, analogous case law or there is new information that sufficiently raise the likelihood of prevailing on the technical merits of the position to more likely than not; (ii) if the statute of limitations expires; or (iii) if there is a completion of an audit resulting in a favorable settlement of that tax year with the appropriate agency. We regularly re-evaluate our tax positions based on the results of audits of federal, state and foreign income tax filings, statute of limitations expirations, changes in tax law or receipt of new information that would either increase or decrease the technical merits of a position relative to the “more-likely-than-not” standard. Liabilities associated with uncertain tax positions are classified as current only when we expect to pay cash within the next 12 months. Interest and penalties, if any, are recorded in Provision for taxes on income and are classified on our Consolidated Balance Sheets with the related tax liability. Amounts recorded for valuation allowances and income tax contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions. B
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| Benefit Plans | Benefit Plans All dedicated benefit plans are pension plans. For our dedicated benefit plans, we recognize the overfunded or underfunded status of defined benefit plans as an asset or liability on the Consolidated Balance Sheets and the obligations generally are measured at the actuarial present value of all benefits attributable to employee service rendered, as provided by the applicable benefit formula. Pension obligations may include assumptions such as long-term rate of return on plan assets, expected employee turnover, participant mortality, and future compensation levels. Plan assets are measured at fair value. Net periodic benefit costs are recognized, as required, into Cost of sales, Selling, general and administrative expenses and Research and development expenses, as appropriate. Amounts recorded for benefit plans can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Asset Retirement Obligations | Asset Retirement Obligations We record accruals for the legal obligations associated with the retirement of tangible long-lived assets, including obligations under the doctrine of promissory estoppel and those that are conditioned upon the occurrence of future events. These obligations generally result from the acquisition, construction, development and/or normal operation of long-lived assets. We recognize the fair value of these obligations in the period in which they are incurred by increasing the carrying amount of the related asset. Over time, we recognize expense for the accretion of the liability and for the amortization of the asset. As of December 31, 2022 and 2021, accruals for asset retirement obligations are $25 million and are primarily included in Other noncurrent liabilities. Amounts recorded for asset retirement obligations can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Legal and Environmental Contingencies | Legal and Environmental Contingencies We are subject to numerous contingencies arising in the ordinary course of business, such as product liability and other product-related litigation, commercial litigation, patent litigation, environmental claims and proceedings, government investigations and guarantees and indemnifications. We record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. We record anticipated recoveries under existing insurance contracts when recovery is assured. Amounts recorded for contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.Our non-tax contingencies include, among others, the following: • Product liability and other product-related litigation, which can include injury, consumer, off-label promotion, antitrust and breach of contract claims. • Commercial and other matters, which can include product-pricing claims and environmental claims and proceedings. • Patent litigation, which typically involves challenges to the coverage and/or validity of our patents or those of third parties on various products or processes. • Government investigations, which can involve regulation by national, state and local government agencies in the U.S. and in other countries. Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, and/or criminal charges, which could be substantial. We believe that we have strong defenses in these types of matters, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations or cash flows in the period in which the amounts are paid. We have accrued for losses that are both probable and reasonably estimable. Substantially all of these contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. The principal matters to which we are a party are discussed below. In determining whether a pending matter is significant for financial reporting and disclosure purposes, we consider both quantitative and qualitative factors in order to assess materiality, such as, among other things, the amount of damages and the nature of any other relief sought in the proceeding, if such damages and other relief are specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be a class action and our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information about the company that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters, we consider, among other things, the financial significance of the product protected by the patent.
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| Share-Based Payments | Share-Based Payments Our compensation programs can include share-based payment plans. All grants under share-based payment programs are accounted for at fair value and such amounts generally are amortized on a straight-line basis over the vesting term to Cost of sales, Selling, general and administrative expenses, and Research and development expenses, as appropriate. We include the impact of estimated forfeitures when determining share-based compensation expense. Amounts recorded for share-based compensation can result from a complex series of judgments about future events and uncertainties and can rely on estimates and assumptions. For information about the risks associated with estimates and assumptions, see Estimates and Assumptions.
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| Foreign Exchange and Interest Rate Risk | A significant portion of our revenue, earnings and net investment in foreign affiliates is exposed to changes in foreign exchange rates. We seek to manage our foreign exchange risk, in part, through operational means, including managing same-currency revenue in relation to same-currency costs and same-currency assets in relation to same-currency liabilities. Depending on market conditions, foreign exchange risk is also managed through the use of various derivative financial instruments. These derivative financial instruments serve to manage the exposure of our net investment in certain foreign operations to changes in foreign exchange rates and protect net income against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions.For foreign currency forward-exchange contracts not designated as hedging instruments, we recognize the gains and losses that are used to offset the same foreign currency assets or liabilities immediately into earnings along with the earnings impact of the items they generally offset. These contracts essentially take the opposite currency position of that reflected in the month-end balance sheet to counterbalance the effect of any currency movement. The vast majority of the foreign currency forward-exchange contracts mature within 60 days and all mature within three years. |
| Guarantees and Indemnifications | In the ordinary course of business and in connection with the sale of assets and businesses, we indemnify our counterparties against certain liabilities that may arise in connection with the transaction or related to activities prior to the transaction. These indemnifications typically pertain to environmental, tax, employee and/or product-related matters and patent-infringement claims. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we would be required to reimburse the loss. These indemnifications are generally subject to threshold amounts, specified claim periods and other restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of December 31, 2022, recorded amounts for the estimated fair value of these indemnifications were not material. |
Tax Matters Accounting Policy (Policies) |
12 Months Ended |
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Dec. 31, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income Tax Uncertainties, Policy [Policy Text Block] | We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statute of limitations expire. We treat these events as discrete items in the period of resolution.For a description of our accounting policies associated with accounting for income tax contingencies, see Note 3. Significant Accounting Policies: Deferred Tax Assets and Liabilities and Income Tax Contingencies. For a description of the risks associated with estimates and assumptions, see Note 3. Significant Accounting Policies: Estimates and Assumptions. |
Revenue (Tables) |
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| Revenue Recognition and Deferred Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from External Customers by Geographic Areas | Revenue by geographic area
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| Revenue from External Customers by Major Species | Revenue by major species
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| Revenue from External Customers by Species | Revenue by species
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| Schedule of Significant Product Revenues | Revenue by product category
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Acquisitions and Divestitures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Business Acquisitions, by Acquisition | The table below presents the preliminary fair values allocated to the assets and liabilities of Jurox as of the acquisition date:
(a) Acquired inventory is comprised of finished goods, work in process and raw materials. The fair value of finished goods was determined based on net realizable value adjusted for the costs of the selling effort, a reasonable profit allowance for the selling effort, and estimated holding costs. The fair value of work in process was determined based on net realizable value adjusted for costs to complete the manufacturing process, costs of the selling effort, a reasonable profit allowance for the remaining manufacturing and selling effort, and an estimate of holding costs. The fair value of raw materials was determined to approximate book value. (b) Property, plant and equipment is comprised of buildings, machinery and equipment, land, construction in progress and furniture and fixtures. The fair value was primarily determined using a reproduction/replacement cost approach which measures the value of an asset by estimating the cost to acquire or construct comparable assets adjusted for age and condition of the asset. (c) Identifiable intangible assets consist of developed technology rights. The fair value of identifiable intangible assets was determined using the income approach, which includes a forecast of expected future cash flows. For additional information regarding identifiable intangible assets, see Note 13. Goodwill and Other Intangible Assets. (d) Goodwill represents the excess of consideration transferred over the fair values of the assets acquired and liabilities assumed. It is allocated to our International segment and is primarily attributable to cost and revenue synergies including market share capture, elimination of cost redundancies and gain of cost efficiencies, and intangible assets such as assembled workforce which are not separately recognizable. The primary strategic purpose of the acquisition was to enhance the company’s existing product portfolio. The goodwill recorded is not deductible for tax purposes.
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Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) |
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| Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Restructuring and Related Costs | The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows:
(a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) Transaction costs represent external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. (c) The restructuring charges for the year ended December 31, 2022 are primarily related to employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, as well as asset impairment charges primarily related to the consolidation of manufacturing sites in China. The restructuring charges for the year ended December 31, 2021 are primarily related to the realignment of our international operations and other cost-reduction and productivity initiatives. The restructuring charges for the year ended December 31, 2020 are primarily related to CEO transition-related costs and other cost-reduction and productivity initiatives. (d) The restructuring charges are associated with the following: •For the year ended December 31, 2022, Manufacturing/research/corporate of $2 million and International of $4 million. •For the year ended December 31, 2021, Manufacturing/research/corporate of $21 million and International of $12 million. •For the year ended December 31, 2020, Manufacturing/research/corporate of $8 million. The components of, and changes in, our restructuring accruals are as follows:
(a) Includes adjustments for foreign currency translation. (b) At December 31, 2022 and 2021, included in Accrued Expenses ($5 million and $14 million, respectively) and Other noncurrent liabilities ($10 million and $11 million, respectively). (c) Includes contractual obligations of $7 million, of which payments are expected to be approximately $6 million in 2023 and $1 million thereafter.
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Other (Income)/Deductions - Net Other (Income)/Deductions - Net (Tables) |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Other (Income)/Deductions—Net | The components of Other (income)/deductions—net follow:
(a) For 2022, primarily represents asset impairment charges related to customer relationships and developed technology rights in our diagnostics, poultry, cattle and swine businesses. For 2021, primarily represents asset impairment charges related to developed technology rights and trademarks in our dairy cattle, diagnostics and aquatic health businesses. For 2020, primarily represents asset impairment charges related to developed technology rights in our precision animal health and aquatic health businesses. (b) For 2020, represents income resulting from payments received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites. (c) Primarily driven by costs related to hedging and exposures to certain developed and emerging market currencies.
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Tax Matters (Tables) |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income before Income Tax, Domestic and Foreign | The components of Income before provision for taxes on income follow:
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| Schedule Of Components Of Provision For Income Taxes | The components of Provision for taxes on income based on the location of the taxing authorities follow:
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| Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. statutory income tax rate to our effective tax rate follows:
(a) For a discussion about unrecognized tax benefits and tax settlements and resolution of certain tax positions, see D. Tax Contingencies. Our effective income tax rate was 20.5%, 18.2% and 18.0% in 2022, 2021 and 2020, respectively. The higher effective tax rate for 2022, compared with 2021, was attributable to a less favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs), a lower benefit in the U.S. related to foreign-derived intangible income and lower net discrete tax benefits in 2022. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible and non-taxable items. The higher effective tax rate for 2021, compared with 2020, was primarily attributable to changes in the jurisdictional mix of earnings, which includes the impact of the location of earnings, repatriation costs, operating fluctuations in the normal course of business and the impact of non-deductible and non-taxable items, as well as higher net discrete tax benefits in 2020, partially offset by a benefit in the U.S. related to foreign-derived intangible income in 2021. In 2022, the company implemented an initiative to maximize its cash position in the U.S. This initiative resulted in a tax benefit in the U.S. in connection with a prepayment from a related foreign entity in Belgium which qualifies as foreign-derived intangible income; however, this income tax benefit has been deferred for 2022 and will be recognized in future periods. This deferred benefit is included in Other current assets on our Consolidated Balance Sheets as of December 31, 2022 in the amount of $38 million. On August 16, 2022, the U.S. Inflation Reduction Act of 2022 (the “IRA”) was enacted which, among other changes, implements a 15% alternative minimum tax on financial statement income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The alternative minimum tax and excise tax are effective for taxable years beginning after December 31, 2022 and the incentives to promote clean energy have various different effective dates. We do not currently expect the IRA to have a material impact on our financial results, including our annual estimated effective tax rate.
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| Schedule of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities follow:
(a) The change in the total net deferred tax asset/(liability) from December 31, 2021 to December 31, 2022 is primarily attributable to an increase in deferred tax assets related to prepaid/deferred items as a result of a prepayment from a related foreign entity in Belgium and an increase in deferred tax assets related to the capitalization and amortization of research & development costs for U.S. tax purposes. (b) In 2022, included in Noncurrent deferred tax assets ($173 million) and Noncurrent deferred tax liabilities ($142 million). In 2021, included in Noncurrent deferred tax assets ($100 million) and Noncurrent deferred tax liabilities ($320 million).
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| Schedule of Unrecognized Tax Benefits Roll Forward | The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:
(a) Primarily included in Provision for taxes on income. (b) In 2022, included in Noncurrent deferred tax assets and Other noncurrent assets ($2 million) and Other taxes payable ($192 million). In 2021, included in Noncurrent deferred tax assets and Other noncurrent assets ($1 million) and Other taxes payable ($188 million). In 2020, included in Noncurrent deferred tax assets and Other noncurrent assets ($1 million) and Other taxes payable ($187 million).
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Financial Instruments (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-term Debt Instruments | The components of our long-term debt are as follows:
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| Schedule of Maturities of Long-term Debt | The following table provides the principal amount of debt outstanding as of December 31, 2022 by scheduled maturity date. The table also provides the expected interest payments on these borrowings as of December 31, 2022.
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| Schedule of Derivative Instruments | The aggregate notional amount of derivative instruments are as follows:
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The classification and fair values of derivative instruments are as follows:
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| Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The amounts of net losses on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions - net, are as follows:
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| Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The amounts of unrecognized net (losses)/gains on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive loss, are as follows:
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| Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location | Gains on interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease, Cost [Table Text Block] | Supplemental information for operating leases is as follows:
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| Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments under non-cancellable operating lease contracts as of December 31, 2022 are as follows:
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Inventories (Tables) |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Inventory | The components of inventory follow:
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Property, Plant and Equipment (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment | The components of property, plant and equipment follow:
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Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in the Carrying Amount of Goodwill | The components of, and changes in, the carrying amount of goodwill follow:
(a) For 2022, primarily relates to the acquisitions of Basepaws and Jurox. See Note 5. Acquisitions and Divestitures. (b) Includes adjustments for foreign currency translation.
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| Components of Identifiable Intangible Assets | The components of identifiable intangible assets follow:
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| Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual amortization expense expected for the years 2023 through 2027 is as follows:
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| Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The components of identifiable intangible assets follow:
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Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table provides an analysis of the changes in the benefit obligations, plan assets and funded status of our dedicated pension plans (including those transferred to us):
(a) Included in Other noncurrent liabilities.
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| Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | Information related to the funded status of selected plans follows:
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| Schedule of Net Benefit Costs | The following table provides the net periodic benefit cost associated with dedicated pension plans (including those transferred to us):
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| Schedule of Assumptions Used | The following table provides the weighted average actuarial assumptions for the dedicated pension plans (including those transferred to us):
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| Schedule of Allocation of Plan Assets | The components of plan assets follow:
(a) Fair values are determined based on valuation inputs categorized as Level 1, 2 or 3 (see Note 3. Significant Accounting Policies—Fair Value). Investment plan assets are valued using Level 1 or Level 2 inputs.
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| Schedule Of Percentage Of Allocation Of Plan Assets | The long-term target asset allocations and the percentage of the fair value of plans assets for dedicated benefit plans follow:
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Share-Based Payments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Share-based Compensation Expense | The components of share-based compensation expense follow:
(a) For each of the years ended December 31, 2022, 2021 and 2020, we capitalized less than $1 million of share-based compensation expense to inventory.
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| Share-based Payment Awards, Stock Options, Valuation Assumptions | The fair-value-based method for valuing each Zoetis stock option grant on the grant date uses the Black-Scholes-Merton option-pricing model, which incorporates a number of valuation assumptions noted in the following table, shown at their weighted-average values:
(a) Determined using a constant dividend yield during the expected term of the Zoetis stock option. (b) Determined using the interpolated yield on U.S. Treasury zero-coupon issues. (c) Determined using an equal weighting between historical volatility of the Zoetis stock price and implied volatility. The selection of the blended historical and implied volatility approach was based on our assessment that this calculation of expected volatility is more representative of future stock price trends. (d) Determined using expected exercise and post-vesting termination patterns.
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| Stock Option Activity | The following table provides an analysis of stock option activity for the year ended December 31, 2022:
(a) Market price of underlying Zoetis common stock less exercise price. As of December 31, 2022, there was approximately $10 million of unrecognized compensation costs related to nonvested stock options, which will be recognized over an expected remaining weighted-average period of one year. The following table summarizes data related to stock option activity:
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| Restricted Stock Units (RSUs) | The following table provides an analysis of RSU activity for the year ended December 31, 2022:
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| Performance-based Units Activity (PSUs) | The following table provides an analysis of PSU activity for the year ended December 31, 2022:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accumulated Other Comprehensive Income (Loss) | Changes, net of tax, in accumulated other comprehensive loss, excluding noncontrolling interest, follow:
|
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Earnings Per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Selected Income Statement Information by Segment | Selected Statement of Income Information
(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 $774 million in 2022, $814 million in 2021 and $718 million in 2020. (c) 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. For 2020, certain significant items primarily included certain asset impairment charges of $37 million and CEO transition-related costs of $16 million, partially offset by a net gain resulting from a cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites of $18 million. (d) Defined as income before provision for taxes on income.
|
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| Long-lived Assets by Geographic Areas | Property, plant and equipment, less accumulated depreciation, by geographic region follow:
|
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Subsequent Events (Details) - USD ($) $ in Millions |
Feb. 01, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Aug. 20, 2018 |
Sep. 12, 2017 |
Nov. 13, 2015 |
Jan. 28, 2013 |
|---|---|---|---|---|---|---|---|
| Subsequent Event [Line Items] | |||||||
| Debt, principal amount | $ 8,000 | $ 6,650 | |||||
| Senior Notes | |||||||
| Subsequent Event [Line Items] | |||||||
| Debt, principal amount | $ 1,500 | $ 1,250 | $ 1,250 | $ 3,650 | |||
| 3.250% 2013 senior notes due 2023 | Senior Notes | |||||||
| Subsequent Event [Line Items] | |||||||
| Debt, principal amount | $ 1,350 | $ 1,350 | |||||
| 3.250% 2013 senior notes due 2023 | Senior Notes | Subsequent Event | |||||||
| Subsequent Event [Line Items] | |||||||
| Debt, principal amount | $ 1,350 |
Business Description (Details) |
Dec. 31, 2022
specie
product_category
country
geographicRegion
|
|---|---|
| Product Information [Line Items] | |
| Number of regional segments | geographicRegion | 2 |
| Number of countries in which entity markets products | 45 |
| Number of core animal species | specie | 8 |
| Number of major product categories | product_category | 7 |
| Product | |
| Product Information [Line Items] | |
| Number of countries in which entity markets products | 100 |
Significant Accounting Policies (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Significant Accounting Policies [Line Items] | |||||
| Revenue recognized throughout 2021 | $ 5 | ||||
| Contract liabilities | 14 | ||||
| Advertising and promotion expenses | 287 | $ 292 | $ 233 | ||
| Cost of sales | [1] | 2,454 | 2,303 | 2,057 | |
| Capitalized internal use software | 57 | 73 | |||
| Depreciation expense | 69 | 52 | 46 | ||
| Accounts receivable, less allowance for doubtful accounts | 1,215 | 1,133 | |||
| Other receivables | $ 71 | 47 | |||
| Percentage of being realized upon settlement | 50.00% | ||||
| Accruals for asset retirement obligations, non current | $ 25 | ||||
| Accounts Receivable | |||||
| Significant Accounting Policies [Line Items] | |||||
| Accruals for sales deductions | $ (295) | (216) | |||
| Minimum | |||||
| Significant Accounting Policies [Line Items] | |||||
| Customer payment terms | 30 days | ||||
| Minimum | Software Development | |||||
| Significant Accounting Policies [Line Items] | |||||
| Estimated useful life (in years) | 5 years | ||||
| Maximum | |||||
| Significant Accounting Policies [Line Items] | |||||
| Customer payment terms | 90 days | ||||
| Maximum | Software Development | |||||
| Significant Accounting Policies [Line Items] | |||||
| Estimated useful life (in years) | 10 years | ||||
| Other current liabilities | |||||
| Significant Accounting Policies [Line Items] | |||||
| Accruals for sales deductions | $ (285) | (312) | |||
| Shipping and Handling [Member] | |||||
| Significant Accounting Policies [Line Items] | |||||
| Cost of sales | $ 82 | $ 80 | $ 66 | ||
| |||||
Revenue - Revenue by Geographic Area (Details) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2022
USD ($)
country
|
Dec. 31, 2021
USD ($)
country
|
Dec. 31, 2020
USD ($)
country
|
|
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 |
| Revenue by country, exceeded | $ 100 | $ 100 | |
| Revenue by country, exceeded, number of countries | country | 12,000,000 | 12,000,000 | 11,000,000 |
| Contract Manufacturing and Human Health Diagnostics [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 86 | $ 82 | $ 83 |
| United States | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 4,313 | 4,042 | 3,557 |
| AUSTRALIA | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 289 | 259 | 207 |
| BRAZIL | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 330 | 312 | 258 |
| CANADA | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 238 | 232 | 210 |
| CHILE | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 141 | 136 | 100 |
| CHINA | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 382 | 357 | 266 |
| FRANCE | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 126 | 132 | 118 |
| GERMANY | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 176 | 183 | 159 |
| ITALY | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 111 | 115 | 90 |
| JAPAN | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 173 | 186 | 177 |
| MEXICO | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 136 | 133 | 116 |
| SPAIN | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 118 | 128 | 112 |
| UNITED KINGDOM | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 235 | 234 | 178 |
| Other developed markets | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 468 | 467 | 388 |
| Other emerging markets | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 758 | 778 | 656 |
| Total Geographical Area | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 7,994 | $ 7,694 | $ 6,592 |
Revenue - Revenue by Major Species (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Revenue from External Customer [Line Items] | |||||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 | ||
| Operating Segments | United States Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 4,313 | 4,042 | 3,557 | ||
| Operating Segments | International Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | [1] | 3,681 | 3,652 | 3,035 | |
| Livestock | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 2,791 | 3,005 | 2,940 | ||
| Livestock | United States Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 972 | 1,052 | 1,166 | ||
| Livestock | International Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 1,819 | 1,953 | 1,774 | ||
| Companion Animal | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 5,203 | 4,689 | 3,652 | ||
| Companion Animal | United States Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 3,341 | 2,990 | 2,391 | ||
| Companion Animal | International Segment | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | 1,862 | 1,699 | 1,261 | ||
| Contract Manufacturing and Human Health Diagnostics [Member] | |||||
| Revenue from External Customer [Line Items] | |||||
| Revenues | $ 86 | $ 82 | $ 83 | ||
| |||||
Revenue - Revenue by Species (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 |
| Cattle | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,440 | 1,557 | 1,558 |
| Swine | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 565 | 659 | 621 |
| Poultry | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 476 | 507 | 537 |
| Fish | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 212 | 187 | 148 |
| Other | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 98 | 95 | 76 |
| Livestock | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 2,791 | 3,005 | 2,940 |
| Dogs and Cats | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 264 | 263 | 215 |
| Horses | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 4,939 | 4,426 | 3,437 |
| Companion Animal | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 5,203 | 4,689 | 3,652 |
| Contract Manufacturing and Human Health Diagnostics [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 86 | $ 82 | $ 83 |
Revenue - Revenue by Product (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 |
| Vaccines | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,718 | 1,673 | 1,476 |
| Other pharmaceuticals | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,043 | 966 | 821 |
| Dermatology [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,329 | 1,180 | 941 |
| Anti-infectives | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,081 | 1,215 | 1,206 |
| Parasiticides | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 1,860 | 1,635 | 1,173 |
| Other non-pharmaceuticals | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 250 | 231 | 210 |
| Medicated feed additives | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 360 | 420 | 460 |
| Animal health diagnostics | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 353 | 374 | 305 |
| Total Products and Services | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | 7,994 | 7,694 | 6,592 |
| Contract Manufacturing and Human Health Diagnostics [Member] | |||
| Revenue from External Customer [Line Items] | |||
| Revenues | $ 86 | $ 82 | $ 83 |
Revenue - Other Revenue Information (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
product_category
| |
| Concentration Risk [Line Items] | |
| Number of Comprehensive Product Lines | 300 |
| Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | |
| Concentration Risk [Line Items] | |
| Concentration risk, percentage | 14.00% |
Acquisitions and Divestitures (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2020 |
|
| Business Combination and Asset Acquisition [Abstract] | |||
| Proceeds from Sale of Buildings | $ 20 | ||
| Business Acquisition [Line Items] | |||
| Proceeds from Sale of Buildings | $ 20 | ||
| Jurox | |||
| Business Acquisition [Line Items] | |||
| Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
| Business Combination, Consideration Transferred | $ 240 | ||
| Cash paid to shareholders | 240 | ||
| Business Combination, Consideration Transferred, Outstanding | $ 5 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 20 | ||
| Accounts receivable | 8 | ||
| Inventories | 20 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1 | ||
| Property, plant and equipment | 28 | ||
| Identifiable intangible assets | 134 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 2 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 12 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 2 | ||
| Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 196 | ||
| Goodwill | 44 | ||
| Business Combination, Price of Acquisition, Expected | 226 | ||
| Payments to Acquire Businesses, Net of Cash Acquired | $ 215 | ||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Components of Costs Incurred (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||
| Employee termination costs | $ 6 | $ 33 | $ 8 | ||||||
| Asset write-offs and asset impairments | 53 | 47 | 43 | ||||||
| Exit costs | [1],[2] | 1 | 3 | 0 | |||||
| Total Restructuring charges and certain acquisition-related costs | 11 | 43 | 25 | ||||||
| Employee Severance | |||||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||
| Employee termination costs | [1],[2] | 3 | 17 | 8 | |||||
| Facility Closing | |||||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||
| Employee termination costs | 2 | 13 | |||||||
| Asset write-offs and asset impairments | 2 | 13 | 0 | ||||||
| Direct Cost | |||||||||
| Restructuring Cost and Reserve [Line Items] | |||||||||
| Integration costs | [3] | 4 | 10 | 17 | |||||
| Transaction costs | $ 1 | $ 0 | $ 0 | ||||||
| |||||||||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Benefits and Charges (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Beginning balance | $ 25 | [1] | $ 21 | $ 45 | |||||||||
| Provision/(benefit) | 6 | 33 | 8 | ||||||||||
| Utilization and other | [2] | (14) | (16) | (32) | |||||||||
| Ending balance | 15 | [1] | 25 | [1] | 21 | ||||||||
| Restructuring Reserve, Settled without Cash | (2) | (13) | 0 | ||||||||||
| Other current liabilities | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Accrued expenses | 5 | 14 | |||||||||||
| Other non-current liabilities | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Other noncurrent liabilities | 10 | 11 | |||||||||||
| Employee Severance | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Beginning balance | 23 | [1] | 21 | 45 | |||||||||
| Provision/(benefit) | [3],[4] | 3 | 17 | 8 | |||||||||
| Utilization and other | [2] | (12) | (15) | (32) | |||||||||
| Ending balance | 14 | [1] | 23 | [1] | 21 | ||||||||
| Restructuring Reserve, Settled without Cash | 0 | 0 | |||||||||||
| Exit Costs | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Beginning balance | 2 | [1] | 0 | 0 | |||||||||
| Provision/(benefit) | 1 | 3 | 0 | ||||||||||
| Utilization and other | [2] | (2) | (1) | 0 | |||||||||
| Ending balance | 1 | [1] | 2 | [1] | $ 0 | ||||||||
| Restructuring Reserve, Settled without Cash | 0 | 0 | |||||||||||
| Facility Closing | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Provision/(benefit) | 2 | 13 | |||||||||||
| Restructuring Reserve, Settled without Cash | (2) | $ (13) | |||||||||||
| Employee Severance and Exit Costs | |||||||||||||
| Restructuring Reserve [Roll Forward] | |||||||||||||
| Contractual obligation | 7 | ||||||||||||
| Payments expected in 2022 | 6 | ||||||||||||
| Payments expected thereafter | $ 1 | ||||||||||||
| |||||||||||||
Other (Income)/Deductions - Net Other (Income)/Deductions - Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Other Income and Expenses [Abstract] | |||||
| Royalty-related income | $ (4) | $ (10) | $ (12) | ||
| Interest income | (50) | (6) | (12) | ||
| Identifiable intangible asset impairment charges | 39 | 27 | 26 | ||
| Net gain on sale of assets | 0 | 3 | (19) | ||
| Impairment of an equity investment | 0 | 0 | 4 | ||
| Other asset impairment charges | 7 | 3 | 4 | ||
| Foreign currency loss | [1] | 62 | 27 | 21 | |
| Other, net | (14) | 4 | 5 | ||
| Other (income)/deductions—net | $ 40 | $ 48 | $ 17 | ||
| |||||
Tax Matters (Taxes on Income) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||
| Taxes on Income [Line Items] | |||||||
| Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | [1] | $ 2,656 | $ 2,488 | $ 1,996 | |||
| Deferred income taxes: | |||||||
| Total U.S. tax provision | $ 545 | $ 454 | $ 360 | ||||
| International: | |||||||
| U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% | ||||
| State and local taxes, net of federal benefits | 0.90% | 0.80% | 0.90% | ||||
| Unrecognized tax benefits and tax settlements and resolution of certain tax positions | [2] | 0.10% | 0.10% | 0.10% | |||
| Foreign Derived Intangible Income | (0.20%) | (1.10%) | 0.00% | ||||
| U.S. Research and Development Tax Credit and U.S. Domestic Production Activities deduction | (0.70%) | (0.60%) | (0.70%) | ||||
| Stock-based compensation | (0.60%) | (0.90%) | (1.30%) | ||||
| Non-deductible / non-taxable items | 0.10% | 0.30% | 0.40% | ||||
| Taxation of non-U.S. operations | (0.40%) | (1.30%) | (1.60%) | ||||
| All other—net | 0.30% | (0.10%) | (0.80%) | ||||
| Effective tax rate | 20.50% | 18.20% | 18.00% | ||||
| Deferred Tax Benefit, FDII | $ 38 | ||||||
| International | |||||||
| International: | |||||||
| Total international tax provision | 197 | $ 202 | $ 135 | ||||
| United States | |||||||
| Deferred income taxes: | |||||||
| Total U.S. tax provision | 348 | 252 | 225 | ||||
| United States | |||||||
| Taxes on Income [Line Items] | |||||||
| Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,645 | 1,308 | 1,109 | ||||
| Current income taxes: | |||||||
| Federal | 514 | 311 | 232 | ||||
| State and local | 81 | 35 | 36 | ||||
| Deferred income taxes: | |||||||
| Federal | (198) | (84) | (29) | ||||
| State and local | (49) | (10) | (14) | ||||
| International | |||||||
| Taxes on Income [Line Items] | |||||||
| Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,011 | 1,180 | 887 | ||||
| International: | |||||||
| Current income taxes | 235 | 188 | 154 | ||||
| Deferred income taxes | $ (38) | $ 14 | $ (19) | ||||
| |||||||
Tax Matters (Deferred Taxes) (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Taxes on Income [Line Items] | |||||||||||||
| Unrecognized Tax Benefits | $ 194 | [1] | $ 189 | [1] | $ 188 | [1] | $ 182 | ||||||
| Prepaid/deferred items | 192 | 109 | |||||||||||
| Inventories | 22 | ||||||||||||
| Inventories | (10) | ||||||||||||
| Capitalized R&D for tax | 111 | 0 | |||||||||||
| Identifiable intangible assets | (154) | (187) | |||||||||||
| Property, plant and equipment | (204) | (183) | |||||||||||
| Employee benefits | 61 | 58 | |||||||||||
| Restructuring and other charges | 1 | 3 | |||||||||||
| Legal and product liability reserves | 14 | 14 | |||||||||||
| Net operating loss/credit carryforwards | 112 | 132 | |||||||||||
| Unremitted earnings | (4) | (7) | |||||||||||
| All other | 9 | ||||||||||||
| All other | 5 | ||||||||||||
| Subtotal | 160 | (46) | |||||||||||
| Valuation allowance | (129) | (174) | |||||||||||
| Deferred Tax Assets, Net | [2],[3] | 31 | |||||||||||
| Net deferred income tax liability | [2],[3] | (220) | |||||||||||
| Noncurrent deferred tax assets | 173 | 100 | |||||||||||
| Noncurrent deferred tax liabilities | 142 | 320 | |||||||||||
| Cumulative amount of undistributed earnings | 7,400 | ||||||||||||
| Noncurrent Deferred Tax Assets | |||||||||||||
| Taxes on Income [Line Items] | |||||||||||||
| Unrecognized Tax Benefits | 2 | 1 | 1 | ||||||||||
| Other Taxes Payable | |||||||||||||
| Taxes on Income [Line Items] | |||||||||||||
| Unrecognized Tax Benefits | $ 192 | $ 188 | $ 187 | ||||||||||
| |||||||||||||
Tax Matters (Tax Contingencies) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||
| Income Tax Contingency [Line Items] | |||||||||
| Net liabilities associated with uncertain tax positions | $ 192 | $ 188 | $ 187 | ||||||
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||
| Balance, January 1 | (189) | [1] | (188) | [1] | (182) | ||||
| Decreases based on tax positions taken during a prior period | [2] | 9 | 7 | 6 | |||||
| Increases based on tax positions taken during the current period | [2] | (4) | (9) | (9) | |||||
| Settlements | 7 | 0 | 0 | ||||||
| Lapse in statute of limitations(a) | 3 | 2 | 3 | ||||||
| Balance, December 31 | [1] | (194) | (189) | (188) | |||||
| Net interest expense | 4 | 1 | 2 | ||||||
| Gross accrued interest | 16 | 12 | 11 | ||||||
| Gross accrued penalties | 3 | 3 | 3 | ||||||
| Other Noncurrent Assets [Member] | |||||||||
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||
| Balance, January 1 | (3) | (3) | |||||||
| Balance, December 31 | (11) | (3) | (3) | ||||||
| Noncurrent Deferred Tax Assets | |||||||||
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||
| Balance, January 1 | (1) | (1) | |||||||
| Balance, December 31 | (2) | (1) | (1) | ||||||
| Other Taxes Payable | |||||||||
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||
| Balance, January 1 | (188) | (187) | |||||||
| Increases based on tax positions taken during a prior period | [2] | (20) | (1) | (6) | |||||
| Balance, December 31 | $ (192) | $ (188) | $ (187) | ||||||
| |||||||||
Financial Instruments (Credit Facilities) (Details) |
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|---|---|---|
| Line of Credit Facility [Line Items] | ||
| Line of credit facility, maximum borrowing capacity | $ 51,000,000 | |
| Short-term Debt | 2,000,000 | $ 0 |
| Revolving Credit Facility | ||
| Line of Credit Facility [Line Items] | ||
| Revolving credit facility, current borrowing capacity | 1,000,000,000 | |
| Line of credit facility, maximum borrowing capacity | 1,500,000,000 | |
| Borrowings outstanding | 0 | |
| Line Of Credit For General Corporate Purpose | ||
| Line of Credit Facility [Line Items] | ||
| Borrowings outstanding | $ 2,000,000 | $ 0 |
| Operational Efficiency | ||
| Line of Credit Facility [Line Items] | ||
| Maximum total leverage ratio | 3.50 | |
| Maximum total leverage ratio, next 12 months | 4.00 |
Financial Instruments (Commercial Paper Program and Other Short-Term Borrowings) (Details) - USD ($) |
Dec. 31, 2022 |
Feb. 28, 2013 |
|---|---|---|
| Short-term Debt [Line Items] | ||
| Commercial paper issued under program | $ 0 | |
| Commercial Paper | ||
| Short-term Debt [Line Items] | ||
| Capacity of commercial paper program | $ 1,000,000,000 |
Financial Instruments (Senior Notes and Other Long-Term Debt) (Details) - USD ($) $ in Millions |
Oct. 13, 2020 |
Feb. 01, 2023 |
Dec. 31, 2022 |
Nov. 08, 2022 |
Dec. 31, 2021 |
May 12, 2020 |
Aug. 20, 2018 |
Sep. 12, 2017 |
Nov. 13, 2015 |
Jan. 28, 2013 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 8,000 | $ 6,650 | ||||||||
| Current portion of long-term debt | 1,350 | 0 | ||||||||
| Senior Notes | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 1,500 | $ 1,250 | $ 1,250 | $ 3,650 | ||||||
| Debt, unamortized discount | $ 4 | $ 7 | $ 2 | $ 10 | ||||||
| Debt, purchase price percent due to downgrade of investment grade | 101.00% | |||||||||
| Senior Notes | 2018 floating rate (three-month USD LIBOR plus 0.44%) senior notes due 2021 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 300 | |||||||||
| Senior Notes | 3.250% 2018 senior notes due 2021 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 300 | |||||||||
| Senior Notes | 3.900% 2018 senior notes due 2028 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 500 | 500 | ||||||||
| Debt, stated interest percentage rate | 3.90% | |||||||||
| Senior Notes | 4.450% 2018 senior notes due 2048 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 400 | 400 | ||||||||
| Debt, stated interest percentage rate | 4.45% | |||||||||
| Senior Notes | 3.000% 2017 senior notes due 2027 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 750 | 750 | ||||||||
| Debt, stated interest percentage rate | 3.00% | |||||||||
| Senior Notes | 3.950% 2017 senior notes due 2047 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 500 | 500 | ||||||||
| Debt, stated interest percentage rate | 3.95% | |||||||||
| Senior Notes | Senior Notes 2.000% Due 2030 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 750 | 750 | ||||||||
| Debt, stated interest percentage rate | 2.00% | |||||||||
| Senior Notes | Senior Notes 3.000% Due 2050 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 500 | 500 | ||||||||
| Senior Notes | 2020 Senior Notes | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 1,250 | |||||||||
| Debt, unamortized discount | $ 10 | |||||||||
| Senior Notes | 3.450% 2015 senior notes due 2020 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, stated interest percentage rate | 3.45% | |||||||||
| Repayment of senior debt | $ 500 | |||||||||
| Senior Notes | 3.250% 2013 senior notes due 2023 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 1,350 | 1,350 | ||||||||
| Debt, stated interest percentage rate | 3.25% | |||||||||
| Senior Notes | 3.250% 2013 senior notes due 2023 | Subsequent Event | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 1,350 | |||||||||
| Senior Notes | 4.500% 2015 senior notes due 2025 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 750 | 750 | ||||||||
| Debt, stated interest percentage rate | 4.50% | |||||||||
| Senior Notes | 4.700% 2013 senior notes due 2043 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 1,150 | 1,150 | ||||||||
| Debt, stated interest percentage rate | 4.70% | |||||||||
| Senior Notes | 2022 Senior Notes | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 1,350 | |||||||||
| Debt, unamortized discount | $ 2 | |||||||||
| Senior Notes | 5.600% Senior Notes Due 2032 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | 750 | 0 | ||||||||
| Debt, stated interest percentage rate | 5.60% | |||||||||
| Senior Notes | 5.400% Senior Notes Due 2025 | ||||||||||
| Debt Instrument [Line Items] | ||||||||||
| Debt, principal amount | $ 600 | $ 0 | ||||||||
| Debt, stated interest percentage rate | 5.40% |
Financial Instruments (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
Aug. 20, 2018 |
Sep. 12, 2017 |
Nov. 13, 2015 |
Jan. 28, 2013 |
|---|---|---|---|---|---|---|
| Debt Instrument [Line Items] | ||||||
| Total | $ 8,000 | $ 6,650 | ||||
| Unamortized debt discount / debt issuance costs | (66) | (60) | ||||
| Less current portion of long-term debt | 1,350 | 0 | ||||
| Cumulative fair value adjustment for interest rate swap contracts | (32) | 2 | ||||
| Long-term debt, net of discount and issuance costs | 6,552 | 6,592 | ||||
| Senior Notes | ||||||
| Debt Instrument [Line Items] | ||||||
| Total | $ 1,500 | $ 1,250 | $ 1,250 | $ 3,650 | ||
| Senior Notes | 3.450% 2015 senior notes due 2020 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 3.45% | |||||
| Senior Notes | 2018 floating rate (three-month USD LIBOR plus 0.44%) senior notes due 2021 | ||||||
| Debt Instrument [Line Items] | ||||||
| Total | 300 | |||||
| Senior Notes | 3.250% 2018 senior notes due 2021 | ||||||
| Debt Instrument [Line Items] | ||||||
| Total | 300 | |||||
| Senior Notes | 3.250% 2013 senior notes due 2023 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 3.25% | |||||
| Total | 1,350 | 1,350 | ||||
| Senior Notes | 4.500% 2015 senior notes due 2025 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 4.50% | |||||
| Total | 750 | 750 | ||||
| Senior Notes | 3.000% 2017 senior notes due 2027 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 3.00% | |||||
| Total | 750 | 750 | ||||
| Senior Notes | 3.900% 2018 senior notes due 2028 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 3.90% | |||||
| Total | 500 | 500 | ||||
| Senior Notes | 4.700% 2013 senior notes due 2043 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 4.70% | |||||
| Total | 1,150 | 1,150 | ||||
| Senior Notes | 3.950% 2017 senior notes due 2047 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 3.95% | |||||
| Total | 500 | 500 | ||||
| Senior Notes | 4.450% 2018 senior notes due 2048 | ||||||
| Debt Instrument [Line Items] | ||||||
| Debt, stated interest percentage rate | 4.45% | |||||
| Total | 400 | 400 | ||||
| Fair Value, Inputs, Level 2 | ||||||
| Debt Instrument [Line Items] | ||||||
| Fair value, debt instrument | $ 6,108 | $ 7,443 |
Financial Instruments (Fair Value of Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Fair Value, Inputs, Level 2 | ||
| Debt Instrument [Line Items] | ||
| Fair value, debt instrument | $ 6,108 | $ 7,443 |
Financial Instruments (Long-term Debt Maturity) (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Maturities | ||
| 2023 | $ 1,350 | |
| 2024 | 0 | |
| 2025 | 1,350 | |
| 2026 | 0 | |
| 2027 | 750 | |
| After 2026 | 4,550 | |
| Total | 8,000 | $ 6,650 |
| Interest payments | ||
| 2023 | 294 | |
| 2024 | 272 | |
| 2025 | 272 | |
| 2026 | 206 | |
| 2027 | 206 | |
| After 2026 | 2,211 | |
| Total | $ 3,461 |
Financial Instruments (Interest Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Debt Disclosure [Abstract] | |||
| Interest expense, net of capitalized interest | $ 221 | $ 224 | $ 231 |
| Capitalized interest expense | $ 21 | $ 20 | $ 17 |
Financial Instruments (Foreign Exchange Risk) (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions |
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
DKK (kr)
|
Dec. 31, 2022
CHF (SFr)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
EUR (€)
|
Dec. 31, 2021
DKK (kr)
|
Dec. 31, 2021
CHF (SFr)
|
|---|---|---|---|---|---|---|---|---|
| Cross-currency interest rate swap contracts | ||||||||
| Derivative [Line Items] | ||||||||
| Aggregate notional amount | $ 250 | € 650 | kr 600 | SFr 25 | $ 200 | € 650 | kr 600 | SFr 25 |
| Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward | ||||||||
| Derivative [Line Items] | ||||||||
| Aggregate notional amount | $ 1,753 | $ 1,749 |
Financial Instruments (Interest Rate Risk) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Aug. 20, 2018 |
Sep. 12, 2017 |
Nov. 13, 2015 |
Jan. 28, 2013 |
|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Less current portion of long-term debt | $ 1,350 | $ 0 | ||||
| Debt, principal amount | 8,000 | 6,650 | ||||
| Derivative, Cash Received on Hedge | 114 | |||||
| Senior Notes | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Debt, principal amount | $ 1,500 | $ 1,250 | $ 1,250 | $ 3,650 | ||
| Senior Notes | 4.500% 2015 senior notes due 2025 | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Debt, stated interest percentage rate | 4.50% | |||||
| Debt, principal amount | 750 | 750 | ||||
| Senior Notes | Senior Notes 2.000% Due 2030 | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Debt, stated interest percentage rate | 2.00% | |||||
| Debt, principal amount | 750 | 750 | ||||
| Senior Notes | Senior Notes 3.000% Due 2050 | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Debt, principal amount | 500 | 500 | ||||
| Interest Rate Swap | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Aggregate notional amount | 50 | $ 550 | ||||
| Derivatives Designated as Hedging Instruments | Interest Rate Swap | ||||||
| Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
| Aggregate notional amount | $ 650 |
Financial Instruments (Derivative Notional Amounts) (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions |
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
DKK (kr)
|
Dec. 31, 2022
CHF (SFr)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
EUR (€)
|
Dec. 31, 2021
DKK (kr)
|
Dec. 31, 2021
CHF (SFr)
|
|---|---|---|---|---|---|---|---|---|
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | ||||||||
| Derivative [Line Items] | ||||||||
| Derivative, notional amount | $ 1,753 | $ 1,749 | ||||||
| Cross-currency interest rate swap contracts | ||||||||
| Derivative [Line Items] | ||||||||
| Derivative, notional amount | 250 | € 650 | kr 600 | SFr 25 | 200 | € 650 | kr 600 | SFr 25 |
| Interest Rate Swap | ||||||||
| Derivative [Line Items] | ||||||||
| Derivative, notional amount | 50 | $ 550 | ||||||
| Interest Rate Swap | Derivatives Designated as Hedging Instruments | ||||||||
| Derivative [Line Items] | ||||||||
| Derivative, notional amount | $ 650 |
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Derivatives, Fair Value [Line Items] | |||||
| Total foreign currency forward-exchange contracts | $ (6) | $ (38) | |||
| Unrecognized net gains/(losses) on derivative instruments | [1] | 36 | 42 | $ (58) | |
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Total foreign currency forward-exchange contracts | (1) | (1) | |||
| Gain (loss) on derivative contracts not designated as hedging instruments | $ (58) | (20) | |||
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | Maximum | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Derivative, Term of Contract | 3 years | ||||
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | Minimum | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Derivative, Term of Contract | 60 days | ||||
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | Other current assets | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | $ (22) | (16) | |||
| Foreign Exchange Forward | Derivatives Not Designated as Hedging Instruments | Other current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | (21) | (15) | |||
| Forward Starting Interest Rate Swap Contract [Member] | Derivatives Designated as Hedging Instruments | Other Noncurrent Assets [Member] | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Total foreign currency forward-exchange contracts | (10) | (17) | |||
| Forward Starting Interest Rate Swap Contract [Member] | Derivatives Designated as Hedging Instruments | Other non-current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | 0 | (5) | |||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Unrecognized net gains/(losses) on derivative instruments | 36 | 42 | |||
| Gains/(losses) on derivative instruments | 16 | 12 | |||
| Collateral received | 21 | 23 | |||
| Additional Collateral, Aggregate Fair Value | $ 8 | ||||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | Maximum | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Derivative, Term of Contract | 3 years | ||||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other current assets | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | $ (21) | (12) | |||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | 9 | 3 | |||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other Noncurrent Assets [Member] | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | (19) | (14) | |||
| Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other non-current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | 4 | 0 | |||
| Fixed to Floating Interest Rate Swap [Member] | Derivatives Designated as Hedging Instruments | Other non-current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | 0 | 2 | |||
| Forward starting interest rate swap contracts | Derivatives Designated as Hedging Instruments | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | 5 | 37 | |||
| Unrecognized net gains/(losses) on derivative instruments | (2) | 18 | |||
| zts_FixedtoFloatInterestRateSwap | Derivatives Designated as Hedging Instruments | Other non-current liabilities | |||||
| Derivatives, Fair Value [Line Items] | |||||
| Foreign currency forward-exchange contracts | $ 32 | $ 0 | |||
| |||||
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Lessee, Lease, Description [Line Items] | |||
| Operating lease expense | $ 51 | $ 50 | $ 46 |
| Variable lease payments not included in the measurement of lease liabilities | 12 | 19 | 20 |
| Short-term lease payments not included in the measurement of lease liabilities | 12 | 9 | 7 |
| Cash paid for amounts included in the measurement of lease liabilities | 51 | 47 | 42 |
| Lease obligations obtained in exchange for right-of-use assets (non-cash) | 99 | 39 | $ 47 |
| Operating lease right of use assets | 220 | 181 | |
| Operating lease liabilities - current (in Other current liabilities) | 43 | 41 | |
| Operating lease liabilities - noncurrent | 186 | 151 | |
| Total operating lease liabilities | $ 229 | $ 192 | |
| Weighted-average remaining lease term—operating leases (years) | 7 years 8 months 19 days | 6 years 6 months 18 days | |
| Weighted-average discount rate—operating leases | 2.78% | 2.81% | |
| 2023 | $ 52 | ||
| 2024 | 45 | ||
| 2025 | 37 | ||
| 2026 | 31 | ||
| 2027 | 26 | ||
| After 2025 | 89 | ||
| Total Lease Payments | 280 | ||
| Less: Imputed Interest | (51) | ||
| Debt, principal amount | $ 8,000 | $ 6,650 | |
| Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
| Minimum | |||
| Lessee, Lease, Description [Line Items] | |||
| Lessee, Operating Lease, Term of Contract | 1 year | ||
| Maximum | |||
| Lessee, Lease, Description [Line Items] | |||
| Lessee, Operating Lease, Term of Contract | 15 years | ||
Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Finished goods | $ 1,090 | $ 888 |
| Work-in-process | 825 | 696 |
| Raw materials and supplies | 430 | 339 |
| Inventories | $ 2,345 | $ 1,923 |
Property, Plant and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Property, Plant and Equipment [Line Items] | |||
| Land | $ 26 | $ 22 | |
| Buildings | 1,197 | 1,103 | |
| Machinery, equipment and fixtures | 3,013 | 2,627 | |
| Construction-in-progress | 814 | 742 | |
| Total property, plant and equipment, gross | 5,050 | 4,494 | |
| Accumulated depreciation | 2,297 | 2,072 | |
| Property, plant and equipment | 2,753 | 2,422 | |
| Depreciation expense | $ 272 | $ 244 | $ 211 |
| Building | Maximum | |||
| Property, Plant and Equipment [Line Items] | |||
| Estimated useful life (in years) | 50 years | ||
| Machinery and Equipment | Minimum | |||
| Property, Plant and Equipment [Line Items] | |||
| Estimated useful life (in years) | 3 years | ||
| Machinery and Equipment | Maximum | |||
| Property, Plant and Equipment [Line Items] | |||
| Estimated useful life (in years) | 20 years | ||
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|||
| Goodwill [Roll Forward] | ||||
| Beginning balance | $ 2,682 | $ 2,694 | ||
| Additions / Adjustments | 105 | 3 | ||
| Other | [1] | (41) | (15) | |
| Ending balance | 2,746 | 2,682 | ||
| United States | ||||
| Goodwill [Roll Forward] | ||||
| Beginning balance | 1,424 | 1,425 | ||
| Additions / Adjustments | 61 | (1) | ||
| Other | [1] | 0 | 0 | |
| Ending balance | 1,485 | 1,424 | ||
| International | ||||
| Goodwill [Roll Forward] | ||||
| Beginning balance | 1,258 | 1,269 | ||
| Additions / Adjustments | 44 | 4 | ||
| Other | [1] | (41) | (15) | |
| Ending balance | $ 1,261 | $ 1,258 | ||
| ||||
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||
| Gross goodwill | $ 3,282 | $ 3,218 |
| Accumulated goodwill impairment losses | $ 536 |
Goodwill and Other Intangible Assets (Finite-lived and Indefinite-lived Intangible Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Finite-lived intangible assets, Gross Carrying Amount | $ 2,650 | $ 2,832 | |
| Finite-lived intangible assets, Accumulated Amortization | (1,445) | (1,544) | |
| Finite-lived intangible assets, Identifiable Intangible Assets, Less Accumulated Amortization | 1,205 | 1,288 | |
| Indefinite-lived intangible assets: | 175 | 186 | |
| Intangible Assets, Gross Carrying Amount | 2,825 | 3,018 | |
| Identifiable Intangible Assets, Less Accumulated Amortization | $ 1,380 | 1,474 | |
| Weighted average life our finite lived intangible assets | 9 years | ||
| Amortization expense of finite-lived intangible assets | $ 193 | 204 | $ 230 |
| 2019 | 181 | ||
| 2020 | 166 | ||
| 2021 | 154 | ||
| 2022 | 147 | ||
| 2023 | 142 | ||
| Brands and tradenames | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Indefinite-lived intangible assets: | 91 | 91 | |
| In Process Research and Development | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Indefinite-lived intangible assets: | 77 | 88 | |
| Product rights | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Indefinite-lived intangible assets: | 7 | 7 | |
| Developed Technology Rights | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Finite-lived intangible assets, Gross Carrying Amount | 1,918 | 1,933 | |
| Finite-lived intangible assets, Accumulated Amortization | (975) | (949) | |
| Finite-lived intangible assets, Identifiable Intangible Assets, Less Accumulated Amortization | 943 | 984 | |
| Brands and tradenames | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Finite-lived intangible assets, Gross Carrying Amount | 395 | 426 | |
| Finite-lived intangible assets, Accumulated Amortization | (237) | (260) | |
| Finite-lived intangible assets, Identifiable Intangible Assets, Less Accumulated Amortization | 158 | 166 | |
| Other Intangible Assets | |||
| Finite Lived and Indefinite Lived Intangible Assets [Line Items] | |||
| Finite-lived intangible assets, Gross Carrying Amount | 337 | 473 | |
| Finite-lived intangible assets, Accumulated Amortization | (233) | (335) | |
| Finite-lived intangible assets, Identifiable Intangible Assets, Less Accumulated Amortization | $ 104 | $ 138 | |
Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Employee benefit plan contribution from Pfizer Inc. | $ 0 | $ 3 | |
| Pension and other postretirement benefit expense | 12 | 14 | $ 14 |
| Actuarial losses | 6 | 21 | |
| Actuarial losses, net of tax | 3 | 16 | |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
| Service cost | 6 | 8 | 8 |
| Interest cost | 2 | 2 | 2 |
| Expected return on plan assets | (3) | (3) | (3) |
| Amortization of net losses | 1 | 1 | 2 |
| Net periodic benefit cost | 6 | 8 | 9 |
| Company contributions | 4 | 5 | |
| Contribution expense | $ (57) | (54) | (48) |
| Matching percentage | 100.00% | ||
| Maximum matching percentage | 5.00% | ||
| Additional contribution percentage, minimum | 0.00% | ||
| Additional contribution percentage, maximum | 8.00% | ||
| Other Pension Plan, Postretirement or Supplemental Plans | |||
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
| 2020 | $ 4 | ||
| Contribution expense | (9) | (12) | (11) |
| Defined Benefit Plan, Expected Future Benefit Payment, Thereafter | 39 | ||
| United States | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Total cost of service credit continuation | $ 38 | ||
| Installment period | 10 years | ||
| Pension and other postretirement benefit expense | $ 6 | 6 | |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
| Postretirement benefit expense | 4 | $ 4 | $ 4 |
| United States | Pfizer | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Remaining total cost | $ 25 | ||
| Foreign Plan | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Period of amortization | 6 years 6 months | ||
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
| Expected contribution in 2020 | $ 5 | ||
| 2020 | 4 | ||
| 2021 | 5 | ||
| 2022 | 6 | ||
| 2023 | 11 | ||
| 2024 | 7 | ||
| Thereafter | $ 49 | ||
Benefit Plans Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||
| Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||||
| Projected benefit obligation, beginning | $ 159 | $ 164 | |||||||
| Service cost | 6 | 8 | $ 8 | ||||||
| Interest cost | 2 | 2 | 2 | ||||||
| Changes in actuarial assumptions and other | (27) | (1) | |||||||
| Settlements and curtailments | (3) | (2) | |||||||
| Benefits paid | (1) | (2) | |||||||
| Adjustments for foreign currency translation | (13) | (9) | |||||||
| Other––net | (1) | (1) | |||||||
| Benefit obligation, ending | 122 | 159 | 164 | ||||||
| Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||||
| Fair value of plan assets, beginning | 92 | [1] | 85 | ||||||
| Actual return on plan assets | (4) | 11 | |||||||
| Company contributions | 4 | 5 | |||||||
| Settlements and curtailments | (3) | (1) | |||||||
| Benefits paid | (1) | (2) | |||||||
| Adjustments for foreign currency translation | (9) | (5) | |||||||
| Other––net | (1) | (1) | |||||||
| Fair value of plan assets, ending | 78 | [1] | 92 | [1] | $ 85 | ||||
| Funded status—Projected benefit obligation in excess of plan assets at end of year | [2] | $ (44) | $ (67) | ||||||
| |||||||||
Benefit Plans Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Pension plans with an accumulated benefit obligation in excess of plan assets: | ||
| Fair value of plan assets | $ 7 | $ 24 |
| Accumulated benefit obligation | 40 | 72 |
| Pension plans with a projected benefit obligation in excess of plan assets: | ||
| Projected benefit obligation | 103 | 152 |
| Pension Plan [Member] | ||
| Pension plans with a projected benefit obligation in excess of plan assets: | ||
| Fair value of plan assets | $ 58 | $ 84 |
Benefit Plans Schedule of Assumptions Used (Details) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Weighted average assumptions used to determine benefit obligations: [Abstract] | |||
| Discount rate | 3.70% | 1.40% | 1.20% |
| Rate of compensation increase | 3.50% | 3.40% | 3.10% |
| Cash balance credit interest rate | 1.70% | 1.50% | 1.50% |
| Weighted average assumptions used to determine net benefit cost for the year ended December 31: | |||
| Discount rate | 1.40% | 1.20% | 1.30% |
| Expected return on plan assets | 3.30% | 3.80% | 3.80% |
| Rate of compensation increase | 3.40% | 3.10% | 3.10% |
| Cash balance credit interest rate | 1.50% | 1.50% | 1.50% |
Benefit Plans Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||
|---|---|---|---|---|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Plan assets | $ 78 | [1] | $ 92 | [1] | $ 85 | ||
| Cash and cash equivalents | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Plan assets | 2 | 1 | |||||
| Equity securities: Equity commingled funds | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Plan assets | 29 | 36 | |||||
| Debt securities: Government bonds | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Plan assets | 38 | 45 | |||||
| Other investments | |||||||
| Defined Benefit Plan Disclosure [Line Items] | |||||||
| Plan assets | $ 9 | $ 10 | |||||
| |||||||
Benefit Plans Schedule Of Percentage Of Allocation Of Plan Assets Table (Details) |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 100.00% | |
| Cash and cash equivalents, percentage | 2.30% | 1.50% |
| Equity securities, percentage | 37.70% | 39.30% |
| Debt securities, percentage | 48.00% | 48.70% |
| Other investments, percentage | 12.00% | 10.50% |
| Total, percentage | 100.00% | 100.00% |
| Maximum | Cash and cash equivalents | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 10.00% | |
| Maximum | Equity securities: Equity commingled funds | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 60.00% | |
| Maximum | Debt securities: Government bonds | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 100.00% | |
| Maximum | Other investments | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 100.00% | |
| Minimum | Cash and cash equivalents | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 0.00% | |
| Minimum | Equity securities: Equity commingled funds | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 0.00% | |
| Minimum | Debt securities: Government bonds | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 15.00% | |
| Minimum | Other investments | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Total, percentage | 0.00% |
Share-Based Payments (Narrative) (Details) - USD ($) |
12 Months Ended | 15 Months Ended | ||||
|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2020 |
|||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Shares of stock approved and registered with the SEC | 30,000,000 | |||||
| Shares available for future grant | 14,000,000 | |||||
| Period following separation service | 60 days | |||||
| Expected stock price volatility | [1] | 27.64% | 27.94% | 24.33% | ||
| Stock Options | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Exercise price percentage of the fair market value price at date of grant | 100.00% | |||||
| Award vesting period (in years) | 3 years | |||||
| Contractual term (in years) | 10 years | |||||
| Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax | $ 10,000,000 | |||||
| Weighted-average period over which RSU cost is expected to be recognized (in years) | 1 year | |||||
| Restricted Stock Units (RSUs) | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Award vesting period (in years) | 3 years | |||||
| Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax | $ 45,000,000 | |||||
| Weighted-average period over which RSU cost is expected to be recognized (in years) | 1 year | |||||
| Granted (in shares) | 207,009 | |||||
| Shares outstanding | 364,085 | |||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 200.18 | |||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 620,598 | 809,884 | ||||
| Deferred Stock Units (DSUs) | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Granted (in shares) | 0 | |||||
| Shares outstanding | 65,071 | 64,599 | ||||
| PSUs | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax | $ 25,000,000 | |||||
| Weighted-average period over which RSU cost is expected to be recognized (in years) | 1 year 2 months 12 days | |||||
| Granted (in shares) | 104,113 | |||||
| Shares outstanding | 174,711 | |||||
| Expected stock price volatility | 28.40% | 28.90% | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 235.52 | |||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 253,044 | 342,386 | ||||
| PSUs | Peer Companies | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Expected stock price volatility | 38.10% | 38.10% | ||||
| PSUs | Minimum | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Percentage of target units | 0.00% | |||||
| PSUs | Maximum | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Percentage of target units | 200.00% | |||||
| Chief Executive Officer [Member] | PSUs | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
| Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 37,265 | |||||
| Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ 6,000,000 | $ 2,000,000 | $ 8,000,000 | |||
| ||||||
Share-Based Payments (Components of share-based compensation expense) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
| Share-based compensation expense—total | [1] | $ 62 | $ 58 | $ 59 | |||
| Tax benefit for share-based compensation expense | (8) | (7) | (7) | ||||
| Share-based compensation expense, net of tax | 54 | 51 | 52 | ||||
| Share-based compensation expense capitalized (less than) | $ 1 | 1 | 1 | ||||
| Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 201.23 | ||||||
| Deferred Stock Units (DSUs) | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
| Granted (in shares) | 0 | ||||||
| Stock options / stock appreciation rights | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
| Share-based compensation expense | $ 10 | 9 | 9 | ||||
| RSUs / DSUs | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
| Share-based compensation expense | [2] | $ 34 | 33 | 31 | |||
| PSUs | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
| Granted (in shares) | 104,113 | ||||||
| Share-based compensation expense | $ 18 | $ 16 | $ 19 | ||||
| |||||||
Share-Based Payments (Stock option valuation assumptions) (Details) |
12 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||
| Expected dividend yield | [1] | 0.64% | 0.62% | 0.55% | |||||||
| Risk-free interest rate | [2] | 1.81% | 0.53% | 1.41% | |||||||
| Expected stock price volatility | [3] | 27.64% | 27.94% | 24.33% | |||||||
| Expected term (in years) | [4] | 4 years 10 months 24 days | 5 years | 5 years 6 months | |||||||
| |||||||||||
Share-Based Payments (Stock option activity) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Shares | |||||
| Outstanding, Beginning Balance (in shares) | 2,132,567 | ||||
| Granted (in shares) | 235,900 | ||||
| Exercised (in shares) | (263,174) | ||||
| Forfeited (in shares) | (37,687) | ||||
| Outstanding, Ending Balance (in shares) | 2,067,606 | 2,132,567 | |||
| Weighted-average Exercise Price Per Share | |||||
| Outstanding, Beginning Balance (in dollars per share) | $ 80.19 | ||||
| Granted (in dollars per share) | 201.23 | ||||
| Exercised (in dollars per share) | 57.10 | ||||
| Forfeited (in dollars per share) | 168.69 | ||||
| Outstanding, Ending Balance (in dollars per share) | $ 95.32 | $ 80.19 | |||
| Outstanding, Weighted-average Remaining Contractual Term (in years) | 5 years | ||||
| Outstanding, Aggregate Intrinsic Value | [1] | $ 122 | |||
| Exercisable, December 31, 2022 | 1,317,387 | ||||
| Exercisable, Weighted Average Exercise Price Per Share | $ 54.48 | ||||
| Exercisable, Weighted Average Remaining Contractual Term (in years) | 3 years 3 months 18 days | ||||
| Vested and expected to vest, Aggregate Intrinsic Value | [1] | $ 121 | |||
| Weighted-average grant date fair value per stock option | $ 51.13 | $ 37.81 | $ 34.22 | ||
| Aggregate intrinsic value on exercise | $ 31 | $ 87 | $ 114 | ||
| Cash received upon exercise | 15 | 36 | 57 | ||
| Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 19 | $ 34 | $ 39 | ||
| |||||
Share-Based Payments (Nonvested restricted stock activity) (Details) - Restricted Stock Units (RSUs) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
$ / shares
shares
| |
| RSUs | |
| Nonvested, Beginning Balance (in shares) | shares | 809,884 |
| Granted (in shares) | shares | 207,009 |
| Vested (in shares) | shares | (364,085) |
| Reinvested dividend equivalents (in shares) | shares | 4,981 |
| Forfeited (in shares) | shares | (37,191) |
| Nonvested, Ending Balance (in shares) | shares | 620,598 |
| Weighted Average Grant Date Fair Value Per Share | |
| Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 125.71 |
| Granted (in dollars per share) | $ / shares | 200.18 |
| Vested (in dollars per share) | $ / shares | 90.36 |
| Reinvested dividend equivalents (in dollars per share) | $ / shares | 157.96 |
| Forfeited (in dollars per share) | $ / shares | 164.12 |
| Nonvested, Ending Balance (in dollars per share) | $ / shares | $ 169.24 |
Share-Based Payments (Performance Share Awards (PSAs) Activity) (Details) - PSUs |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
$ / shares
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Shares, Issued | shares | 342,570 |
| RSUs | |
| Nonvested, Beginning Balance (in shares) | shares | 342,386 |
| Granted (in shares) | shares | 104,113 |
| Vested (in shares) | shares | (174,711) |
| Reinvested dividend equivalents (in shares) | shares | 2,115 |
| Forfeited (in shares) | shares | (20,859) |
| Nonvested, Ending Balance (in shares) | shares | 253,044 |
| Weighted Average Grant Date Fair Value Per Share | |
| Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 160.68 |
| Granted (in dollars per share) | $ / shares | 235.52 |
| Vested (in dollars per share) | $ / shares | 110.75 |
| Reinvested dividend equivalents (in dollars per share) | $ / shares | 204.49 |
| Forfeited (in dollars per share) | $ / shares | 217.48 |
| Nonvested, Ending Balance (in dollars per share) | $ / shares | 221.59 |
| Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 101.57 |
Stockholders' Equity - Changes in Common Shares and Treasury Stock (Details) - USD ($) |
12 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
| Class of Stock [Line Items] | ||||
| Common stock, shares authorized | 6,000,000,000 | |||
| Preferred stock, authorized (in shares) | 1,000,000,000 | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
| Beginning Balance | 501,900,000 | 501,900,000 | 501,900,000 | |
| Beginning Balance | 29,317,153 | 26,600,000 | 26,400,000 | |
| Stock-based compensation | 0 | 0 | ||
| Share repurchase program | 0 | 0 | ||
| Treasury Stock | (700,000) | (1,300,000) | (1,600,000) | |
| Ending Balance | 501,891,243 | 501,900,000 | 501,900,000 | |
| Ending Balance | 38,083,184 | 29,317,153 | 26,600,000 | |
| Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,600,000,000 | |||
| December 2018 Share Repurchase Program | ||||
| Class of Stock [Line Items] | ||||
| Shares authorized under repurchase program | $ 2,000,000,000 | |||
| December 2021 Share Repurchase Program [Member] | ||||
| Class of Stock [Line Items] | ||||
| Shares authorized under repurchase program | $ 3,500,000,000 | |||
| Share Repurchase Program | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
| Treasury Stock | (9,500,000) | (4,000,000.0) | (1,800,000) | |
Stockholders' Equity - Accumulated other comprehensive income/ (loss) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Beginning balance | $ (764) | |||
| Other comprehensive (loss)/gain, net of tax | (53) | $ (34) | $ (4) | |
| Ending balance | (817) | (764) | ||
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 4,403 | 4,544 | 3,773 | $ 2,708 |
| Accumulated Other Comprehensive (Loss)/ Income | ||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Other comprehensive (loss)/gain, net of tax | (53) | (34) | (4) | |
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (817) | (764) | (730) | (726) |
| Derivatives Net Unrealized Losses | ||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Other comprehensive (loss)/gain, net of tax | 86 | 19 | (15) | |
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 90 | 4 | (15) | $ 0 |
| Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Beginning balance | 5 | (37) | 21 | |
| Other comprehensive (loss)/gain, net of tax | 36 | 42 | (58) | |
| Ending balance | 41 | 5 | (37) | |
| Currency Translation Adjustment, Net Unrealized Losses | ||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Beginning balance | (756) | (655) | (724) | |
| Other comprehensive (loss)/gain, net of tax | (188) | (101) | 69 | |
| Ending balance | (944) | (756) | (655) | |
| Benefit Plans, Actuarial Gains/ (Losses) | ||||
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Beginning balance | (17) | (23) | (23) | |
| Other comprehensive (loss)/gain, net of tax | 13 | 6 | 0 | |
| Ending balance | $ (4) | $ (17) | $ (23) | |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Numerator | |||
| Net income before allocation to noncontrolling interests | $ 2,111 | $ 2,034 | $ 1,636 |
| Less: net loss attributable to noncontrolling interests | (3) | (3) | (2) |
| Net income attributable to Zoetis Inc. | $ 2,114 | $ 2,037 | $ 1,638 |
| Denominator | |||
| Weighted-average common shares outstanding | 468,891 | 474,348 | 475,502 |
| Common stock equivalents: stock options, RSUs, DSUs and PSUs | 1,494 | 2,369 | 3,067 |
| Weighted-average common and potential dilutive shares outstanding | 470,385 | 476,717 | 478,569 |
| Earnings per share attributable to Zoetis Inc. stockholders—basic (in dollars per share) | $ 4.51 | $ 4.29 | $ 3.44 |
| Earnings per share attributable to Zoetis stockholders—diluted (in dollars per share) | $ 4.49 | $ 4.27 | $ 3.42 |
Commitments and Contingencies (Details) $ in Millions |
1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|---|
|
May 16, 2016
producer
|
Jun. 03, 2015
count
|
Aug. 31, 2014
animal
|
Apr. 30, 2012 |
Jun. 30, 2016
USD ($)
|
Dec. 31, 2022
customer
|
Feb. 29, 2012
defendant
|
|
| Loss Contingencies [Line Items] | |||||||
| Number of deaths from contamination of animal feed | animal | 50,000 | ||||||
| Number of contaminated animal from contamination of animal feed | animal | 20,000 | ||||||
| Number of claims filed | count | 1 | ||||||
| Ulianopolis, Brazil | |||||||
| Loss Contingencies [Line Items] | |||||||
| Number of additional defendants | defendant | 5 | ||||||
| Number of claims seeking damages | defendant | 6 | ||||||
| Number of years lawsuit suspended | 1 year | ||||||
| Lascadoil | |||||||
| Loss Contingencies [Line Items] | |||||||
| Number of claims filed | 2 | 3 | |||||
| European Commission | |||||||
| Loss Contingencies [Line Items] | |||||||
| Income Tax Examination, Penalties and Interest Expense | $ | $ 35 | ||||||
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions |
Dec. 31, 2022
USD ($)
|
|---|---|
| Long-Term Purchase Commitment [Line Items] | |
| Purchase Obligation, to be Paid, Year One | $ 173 |
| Purchase Obligation | 321 |
| Long Term Purchase Commitment | |
| Long-Term Purchase Commitment [Line Items] | |
| Purchase Obligation | $ 148 |
Segment Information (Details) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2022
USD ($)
segment
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
| Segment Reporting Information [Line Items] | |||
| Number of Operating Segments | segment | 2 | ||
| Assets | $ 14,925 | $ 13,900 | |
| Proceeds from Sale of Buildings | $ 20 | ||
| CEO Transition Costs [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Restructuring and Other Cost Productivity Charges | 16 | ||
| Impairment Charges [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Restructuring and Other Cost Productivity Charges | 47 | 46 | $ 37 |
| Segment Reconciling Items | Zoetis Initiatives | |||
| Segment Reporting Information [Line Items] | |||
| Restructuring and Other Cost Productivity Charges | $ 4 | $ 24 | |
Segment Information - Income Statement (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 | ||||||||||
| Cost of Sales | [1] | 2,454 | 2,303 | 2,057 | |||||||||
| Other (income)/deductions-net | 40 | 48 | 17 | ||||||||||
| Earnings | [2] | 2,656 | 2,488 | 1,996 | |||||||||
| Depreciation and Amortization | [2],[3] | 465 | 448 | 441 | |||||||||
| Property, plant and equipment, less accumulated depreciation | 2,753 | 2,422 | |||||||||||
| Other business activities | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Earnings | (424) | (406) | (372) | ||||||||||
| Depreciation and Amortization | [3] | 28 | 28 | 27 | |||||||||
| United States | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Revenues | 4,313 | 4,042 | 3,557 | ||||||||||
| Property, plant and equipment, less accumulated depreciation | 1,820 | 1,638 | |||||||||||
| International | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Property, plant and equipment, less accumulated depreciation | 933 | 784 | |||||||||||
| Operating Segments | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Earnings | 4,753 | 4,517 | 3,786 | ||||||||||
| Depreciation and Amortization | [3] | 141 | 128 | 111 | |||||||||
| Operating Segments | United States Segment | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Revenues | 4,313 | 4,042 | 3,557 | ||||||||||
| Cost of Sales | 803 | 788 | 709 | ||||||||||
| Gross Profit | $ 3,510 | $ 3,254 | $ 2,848 | ||||||||||
| Gross Margin | 81.40% | 80.50% | 80.10% | ||||||||||
| Operating Expenses | $ 765 | $ 681 | $ 602 | ||||||||||
| Other (income)/deductions-net | (18) | (4) | (7) | ||||||||||
| Earnings | 2,763 | 2,569 | 2,239 | ||||||||||
| Depreciation and Amortization | [3] | 55 | 54 | 55 | |||||||||
| Operating Segments | International Segment | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Revenues | [4] | 3,681 | 3,652 | 3,035 | |||||||||
| Cost of Sales | 1,083 | 1,106 | 971 | ||||||||||
| Gross Profit | $ 2,598 | $ 2,546 | $ 2,064 | ||||||||||
| Gross Margin | 70.60% | 69.70% | 68.00% | ||||||||||
| Operating Expenses | $ 611 | $ 602 | $ 510 | ||||||||||
| Other (income)/deductions-net | 3 | 4 | (7) | ||||||||||
| Earnings | 1,990 | 1,948 | 1,547 | ||||||||||
| Operating Segments | International | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Depreciation and Amortization | [3] | 86 | 74 | 56 | |||||||||
| Corporate, Non-Segment | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Earnings | (1,073) | (1,052) | (879) | ||||||||||
| Depreciation and Amortization | [3] | 132 | 115 | 101 | |||||||||
| Segment Reconciling Items | |||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||
| Depreciation and Amortization | [3] | 0 | 0 | 0 | |||||||||
| Purchase accounting adjustments, earnings | (160) | (175) | (198) | ||||||||||
| Purchase accounting adjustments, depreciation and amortization | [3] | 159 | 175 | 199 | |||||||||
| Acquisition-related costs, earnings | (5) | (12) | (18) | ||||||||||
| Certain significant items, earnings | [5] | (56) | (73) | (43) | |||||||||
| Certain significant items, depreciation and amortization | [3],[5] | 0 | 0 | 0 | |||||||||
| Other unallocated, earnings | (379) | (311) | (280) | ||||||||||
| Other unallocated, deprecation and amortization | [3] | $ 5 | $ 2 | $ 3 | |||||||||
| |||||||||||||
Segment Information - Income Statement Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Segment Reporting Information [Line Items] | |||||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 | ||
| CHINA | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenues | 382 | 357 | 266 | ||
| Zoetis Initiatives | |||||
| Segment Reporting Information [Line Items] | |||||
| Gain (loss) on disposal | 18 | ||||
| Segment Reconciling Items | Zoetis Initiatives | |||||
| Segment Reporting Information [Line Items] | |||||
| Restructuring and Other Cost Productivity Charges | 4 | 24 | |||
| International Segment | Operating Segments | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenues | [1] | 3,681 | 3,652 | 3,035 | |
| International Segment | Euro Member Countries, Euro | Operating Segments | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenues | $ 774 | $ 814 | $ 718 | ||
| |||||
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
| Quarterly Financial Information Disclosure [Abstract] | |||||
| Revenues | $ 8,080 | $ 7,776 | $ 6,675 | ||
| Total Restructuring charges and certain acquisition-related costs | 11 | 43 | 25 | ||
| Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | [1] | 2,656 | 2,488 | 1,996 | |
| Provision for taxes on income | 545 | 454 | 360 | ||
| Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,111 | 2,034 | 1,636 | ||
| Less: net loss attributable to noncontrolling interests | (3) | (3) | (2) | ||
| Net Income (Loss) Attributable to Parent | $ 2,114 | $ 2,037 | $ 1,638 | ||
| Earnings Per Share, Basic | $ 4.51 | $ 4.29 | $ 3.44 | ||
| Earnings Per Share, Diluted | $ 4.49 | $ 4.27 | $ 3.42 | ||
| |||||
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
| Balance, Beginning of Period | $ 17 | $ 20 | $ 21 |
| Additions | 4 | 1 | 3 |
| Deductions | (2) | (4) | (4) |
| Balance, End of Period | $ 19 | $ 17 | $ 20 |
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