Zoetis (ZTS) 10-Q 5 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-35797
Entity Registrant Name	Zoetis Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-0696167
Entity Address, Address Line One	10 Sylvan Way,
Entity Address, City or Town	Parsippany,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	822-7000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ZTS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		473,944,193
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001555280
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 1,948	$ 1,548	$ 3,819		$ 3,082
Costs and expenses:
Cost of sales	568	451	1,117		910
Selling, general and administrative expenses	495	393	904		782
Research and development expenses	120	111	238		218
Amortization of intangible assets	41	40	81		80
Restructuring charges and certain acquisition-related costs	21	8	30		17
Interest expense, net of capitalized interest	57	58	114		111
Other (income)/deductions—net	10	5	12		(15)
Income before provision for taxes on income	636	482	1,323	[1]	979	[1]
Provision for taxes on income	125	106	254		180
Net income before allocation to noncontrolling interests	511	376	1,069		799
Less: Net loss attributable to noncontrolling interests	(1)	(1)	(2)		(1)
Net income attributable to Zoetis Inc.	$ 512	$ 377	$ 1,071		$ 800
Earnings per share attributable to Zoetis Inc. stockholders:
Basic (in dollars per share)	$ 1.08	$ 0.79	$ 2.25		$ 1.68
Diluted (in dollars per share)	$ 1.07	$ 0.79	$ 2.24		$ 1.67
Weighted-average common shares outstanding:
Basic (in shares)	474.8	475.3	475.2		475.4
Diluted (in shares)	477	478.1	477.5		478.6
Dividends paid per common share (in dollars per share)	$ 0.250	$ 0.200	$ 0.500		$ 0.400
[1]	Defined as income before provision for taxes on income.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income before allocation to noncontrolling interests	$ 511	$ 376	$ 1,069	$ 799
Other comprehensive income (loss), net of tax:
Unrealized (losses)/gains on derivatives for cash flow hedges, net	(19)	(4)	20	(32)
Unrealized (losses)/gains on derivatives for net investment hedges, net	(8)	(14)	17	3
Foreign currency translation adjustments, net	37	(57)	70	(101)
Other comprehensive income, net of tax	10	(75)	107	(130)
Comprehensive income before allocation to noncontrolling interests	521	301	1,176	669
Less: Comprehensive loss attributable to noncontrolling interests	(1)	(1)	(2)	(1)
Comprehensive income attributable to Zoetis Inc.	$ 522	$ 302	$ 1,178	$ 670

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions		Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	[1]	$ 3,658	$ 3,604
Accounts receivable, less allowance for doubtful accounts of $18 in 2021 and $20 in 2020		1,170	1,013
Inventories		1,802	1,628
Other current assets		418	366
Total current assets		7,048	6,611
Property, plant and equipment, less accumulated depreciation of $2,064 in 2021 and $1,952 in 2020		2,286	2,202
Operating lease right of use assets		177	192
Goodwill		2,718	2,694
Identifiable intangible assets, less accumulated amortization		1,640	1,710
Noncurrent deferred tax assets		103	94
Other noncurrent assets		97	106
Total assets		14,069	13,609
Liabilities and Equity
Short-term borrowings		4	4
Current portion of long-term debt		600	600
Accounts payable		369	457
Dividends payable		119	119
Accrued expenses		646	556
Accrued compensation and related items		239	295
Income taxes payable		43	46
Other current liabilities		71	93
Total current liabilities		2,091	2,170
Long-term debt, net of discount and issuance costs		6,592	6,595
Noncurrent deferred tax liabilities		381	378
Operating lease liabilities		147	163
Other taxes payable		261	260
Other noncurrent liabilities		245	270
Total liabilities		9,717	9,836
Commitments and Contingencies
Stockholders' equity:
Common stock, $0.01 par value: 6,000,000,000 authorized; 501,891,243 and 501,891,243 shares issued; 474,210,830 and 475,317,751 shares outstanding at June 30, 2021, and December 31, 2020, respectively		5	5
Treasury stock, at cost, 27,680,413 and 26,573,492 shares of common stock at June 30, 2021, and December 31, 2020, respectively		(2,568)	(2,230)
Additional paid-in capital		1,044	1,065
Retained earnings		6,492	5,659
Accumulated other comprehensive loss		(623)	(730)
Total Zoetis Inc. equity		4,350	3,769
Equity attributable to noncontrolling interests		2	4
Total equity		4,352	3,773
Total liabilities and equity		$ 14,069	$ 13,609
[1]	As of June 30, 2021 and December 31, 2020, includes $1 million and $2 million of restricted cash, respectively.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 18	$ 20
Accumulated depreciation	$ 2,064	$ 1,952
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock issued, shares	501,891,243	501,891,243
Common stock, shares outstanding	474,210,830	475,317,751
Treasury stock, shares	27,680,413	26,573,492
Restricted cash	$ 1	$ 2

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions	Total		Common Stock	Treasury Stock	Treasury StockShare Repurchase Program	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Equity Attributable to Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2019			501,900,000
Beginning balance at Dec. 31, 2019	$ 2,708		$ 5	$ (2,042)		$ 1,044	$ 4,427	$ (726)	$ 0
Treasury stock, beginning balance (in shares) at Dec. 31, 2019				26,400,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	799						800		(1)
Other comprehensive income	(130)							(130)
Consolidation of noncontrolling interests	6								6
Treasury stock acquired, shares				(1,800,000)	(1,300,000)
Share-based compensation awards	43			$ 47		(15)	11
Treasury stock acquired	(250)			(250)
Employee benefit plan contribution from Pfizer Inc.	1					1
Dividends declared	(190)						(190)
Ending balance (in shares) at Jun. 30, 2020			501,900,000
Ending balance at Jun. 30, 2020	2,987			$ (2,245)		1,030	5,048	(856)	5
Treasury stock, ending balance (in shares) at Jun. 30, 2020				26,900,000
Beginning balance (in shares) at Mar. 31, 2020			501,900,000
Beginning balance at Mar. 31, 2020	2,753		$ 5	$ (2,252)		1,017	4,764	(781)	0
Treasury stock, beginning balance (in shares) at Mar. 31, 2020				27,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	376						377		(1)
Other comprehensive income	(75)							(75)
Consolidation of noncontrolling interests	6								6
Treasury stock acquired, shares					(100,000)
Share-based compensation awards	22	[1]		$ 7		13	2
Dividends declared	(95)						(95)
Ending balance (in shares) at Jun. 30, 2020			501,900,000
Ending balance at Jun. 30, 2020	$ 2,987			$ (2,245)		1,030	5,048	(856)	5
Treasury stock, ending balance (in shares) at Jun. 30, 2020				26,900,000
Beginning balance (in shares) at Dec. 31, 2020	501,891,243		501,900,000
Beginning balance at Dec. 31, 2020	$ 3,773		$ 5	$ (2,230)		1,065	5,659	(730)	4
Treasury stock, beginning balance (in shares) at Dec. 31, 2020	26,573,492			26,600,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 1,069						1,071		(2)
Other comprehensive income	107							107
Treasury stock acquired, shares				(2,100,000)	(1,000,000)
Share-based compensation awards	(13)			$ 9		(22)
Treasury stock acquired	(347)			(347)
Employee benefit plan contribution from Pfizer Inc.	1					1
Dividends declared	$ (238)						(238)
Ending balance (in shares) at Jun. 30, 2021	501,891,243		501,900,000
Ending balance at Jun. 30, 2021	$ 4,352		$ 5	$ (2,568)		1,044	6,492	(623)	2
Treasury stock, ending balance (in shares) at Jun. 30, 2021	27,680,413			27,700,000
Beginning balance (in shares) at Mar. 31, 2021			501,900,000
Beginning balance at Mar. 31, 2021	$ 4,092		$ 5	$ (2,412)		1,030	6,099	(633)	3
Treasury stock, beginning balance (in shares) at Mar. 31, 2021				26,900,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	511						512		(1)
Other comprehensive income	10							10
Treasury stock acquired, shares				(1,000,000)	(200,000)
Share-based compensation awards	24			$ 10		14
Treasury stock acquired	(166)			(166)
Dividends declared	$ (119)						(119)
Ending balance (in shares) at Jun. 30, 2021	501,891,243		501,900,000
Ending balance at Jun. 30, 2021	$ 4,352		$ 5	$ (2,568)		$ 1,044	$ 6,492	$ (623)	$ 2
Treasury stock, ending balance (in shares) at Jun. 30, 2021	27,680,413			27,700,000
[1]	(b) Includes the issuance of shares of Zoetis Inc. common stock and the reacquisition of shares of treasury stock associated with exercises of employee share-based awards. Also includes the reacquisition of shares of treasury stock associated with the vesting of employee share-based awards to satisfy tax withholding requirements. For additional information, see Note 12. Share-based Payments and Note 13. Stockholders' Equity .

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)
Operating Activities
Net income before allocation to noncontrolling interests	$ 1,069	$ 799
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization expense	221	221	[1],[2]
Share-based compensation expense	29	32
Asset write-offs and asset impairments	14	9
Net loss/(gain) on sale of assets	(3)	18
Provision for losses on inventory	25	32
Deferred taxes	(24)	(38)
Employee benefit plan contribution from Pfizer Inc.	1	1
Loss on treasury locks	0	(6)
Other non-cash adjustments	7	2
Other changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	(149)	71
Inventories	(206)	(233)
Other assets	(36)	(42)
Accounts payable	(91)	37
Other liabilities	21	(156)
Other tax accounts, net	(3)	135
Net cash provided by operating activities	881	846
Investing Activities
Capital expenditures	(190)	(184)
Acquisitions, net of cash acquired	(14)	(78)
Settlement on swaps designated as net investment hedges	2	20
Net proceeds from sale of assets	0	23
Other investing activities	0	(2)
Net cash used in investing activities	(202)	(221)
Financing Activities
Increase in short-term borrowings, net	0	1
Proceeds from issuance of long-term debt—senior notes, net of discount	0	1,240
Payment of consideration related to previous acquisitions	(5)	0
Acquisition of a noncontrolling interest, net of cash acquired	0	3
Share-based compensation-related proceeds, net of taxes paid on withholding shares	(39)	21
Purchases of treasury stock	(347)	(250)
Cash dividends paid	(238)	(190)
Payment of debt issuance costs	0	12
Net cash (used in)/provided by financing activities	(629)	813
Effect of exchange-rate changes on cash and cash equivalents	4	(19)
Net increase in cash and cash equivalents	54	1,419
Cash and cash equivalents at beginning of period	3,604	1,934
Cash and cash equivalents at end of period	3,658	3,353
Cash paid during the period for:
Income taxes	315	91
Interest, net of capitalized interest	127	123
Amounts included in the measurement of lease liabilities	23	20
Non-cash transactions:
Capital expenditures	4	5
Lease obligations obtained in exchange for right-of-use assets	7	$ 13
Dividends declared, not paid	$ 119
[1]	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.
[2]	Defined as income before provision for taxes on income.

Organization

Organization	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Zoetis 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, biodevices, genetic tests and precision livestock farming technology. We organize and operate our business in two geographic regions: the United States (U.S.) and International.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three and six months ended May 31, 2021 and May 31, 2020. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. Certain reclassifications of prior year information have been made to conform to the current year's presentation.

Accounting Standards

Accounting Standards	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Accounting Standards	3. 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 . 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 provisions of ASU 2020-04 is optional and effective as of March 12, 2020, but only available through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements and related disclosures, as well as the timing of the potential adoption.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]
Revenue	4. Revenue A. Revenue from Product Sales We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers and e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network. Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to a single product in all brands, 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 across 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; • anti-infectives : products that prevent, kill or slow the growth of bacteria, fungi or protozoa; • dermatology products : products that relieve itch associated with allergic conditions and atopic dermatitis; • 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 : portable blood and urine analysis systems and point-of-care diagnostic products, including instruments and reagents, rapid immunoassay tests, reference laboratory kits, blood glucose monitors and reference laboratory services. Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision livestock farming. Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics. Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply. The following tables present our revenue disaggregated by geographic area, species, and major product category: Revenue by geographic area Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 United States $ 1,004 $ 823 $ 1,937 $ 1,609 Australia 69 51 126 94 Brazil 75 56 149 119 Canada 67 54 113 94 Chile 34 25 68 48 China 94 66 217 132 France 32 24 67 53 Germany 50 40 88 74 Italy 32 14 57 35 Japan 50 53 97 94 Mexico 34 26 67 58 Spain 33 24 64 52 United Kingdom 43 26 112 81 Other developed markets 112 90 223 177 Other emerging markets 199 159 398 325 1,928 1,531 3,783 3,045 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082 Revenue by major species Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 U.S. Companion animal $ 794 $ 594 $ 1,452 $ 1,093 Livestock 210 229 485 516 1,004 823 1,937 1,609 International Companion animal 435 288 853 586 Livestock 489 420 993 850 924 708 1,846 1,436 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082 Revenue by species Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Companion Animal: Dogs and Cats $ 1,161 $ 831 $ 2,177 $ 1,577 Horses 68 51 128 102 1,229 882 2,305 1,679 Livestock: Cattle 342 320 741 690 Swine 161 146 351 303 Poultry 134 135 265 283 Fish 39 30 76 56 Sheep and other 23 18 45 34 699 649 1,478 1,366 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082 Revenue by major product category Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Parasiticides $ 460 $ 307 $ 850 $ 562 Vaccines 417 336 830 685 Anti-infectives 259 241 580 521 Dermatology 285 227 533 424 Other pharmaceuticals 248 192 474 389 Medicated feed additives 103 109 215 234 Animal health diagnostics 99 69 188 129 Other non-pharmaceuticals 57 50 113 101 1,928 1,531 3,783 3,045 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082 B. Revenue from Contracts with Customers Contract liabilities reflected within Other current liabilities as of December 31, 2020 and December 31, 2019, and subsequently recognized as revenue during the first six months of 2021 and 2020 were approximately $8 million and $5 million, respectively. Contract liabilities as of June 30, 2021 and December 31, 2020 were approximately $13 million.

Acquisitions and Divestitures

Acquisitions and Divestitures	6 Months Ended
	Jun. 30, 2021
Business Combinations [Abstract]
Acquisitions and Divestitures	5. Acquisitions and Divestitures A. Acquisitions In the second quarter of 2021, we acquired certain assets to expand our portfolio of equine horse care products. This transaction did not have a significant 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 livestock 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 significant impact on our consolidated financial statements. B. Divestitures During the six months ended June 30, 2020, we received a cash payment of $20 million pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.

Restructuring Charges and Other

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives	6 Months Ended
	Jun. 30, 2021
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 information 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: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ 2 $ 6 $ 5 $ 12 Restructuring charges (b) : Employee termination costs 6 2 10 5 Asset impairment charges 13 — 13 — Exit costs — — 2 — Total Restructuring charges and certain acquisition-related costs $ 21 $ 8 $ 30 $ 17 (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) The restructuring charges for the three and six months ended June 30, 2021 primarily represents asset impairment charges related to the consolidation of manufacturing sites in China and employee termination costs associated with cost-reduction and productivity initiatives. The restructuring charges for the three and six months ended June 30, 2020 primarily relate to CEO transition-related costs which are associated with Manufacturing/research/corporate. (MILLIONS OF DOLLARS) Accrual (a) Balance, December 31, 2020 (b) $ 21 Provision 25 Non-cash activity (13) Utilization and other (c) (8) Balance, June 30, 2021 (b) $ 25 (a) Changes in our restructuring accrual represents employee termination and exit costs. (b) At June 30, 2021 and December 31, 2020, included in Accrued expenses ($10 million and $6 million, respectively) and Other noncurrent liabilities ($15 million).

Other (Income)_Deductions - Net

Other (Income)/Deductions - Net	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Other (Income)/Deductions - Net	7. Other (Income)/Deductions—Net The components of Other (income)/deductions—net are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Royalty-related income $ (2) $ (5) $ (4) $ (6) Interest income (2) (2) (3) (8) Identifiable intangible asset impairment charges — 3 — 3 Net loss (gain) on sale of assets (a) 3 (1) 3 (18) Foreign currency loss (b) 9 6 12 11 Impairment of an equity investment — 4 — 4 Other, net 2 — 4 (1) Other (income)/deductions—net $ 10 $ 5 $ 12 $ (15) (a) For the three and six months ended June 30, 2021, represents a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the six months ended June 30, 2020, primarily represents a net gain resulting from a cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites. (b) Primarily driven by costs related to hedging and exposures to certain emerging and developed market currencies.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes A. Taxes on Income Our effective tax rate was 19.7% for the three months ended June 30, 2021, compared with 22.0% for the three months ended June 30, 2020. The lower effective tax rate for the three months ended June 30, 2021, was primarily attributable to: • changes in the jurisdictional mix of earnings, which includes the impact of the location of earnings from operations and repatriation costs. The jurisdictional mix of earnings can vary as a result of repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items; and • a $4 million and a $1 million discrete tax benefit recorded in the three months ended June 30, 2021 and 2020, respectively, related to the excess tax benefits for share-based payments. Our effective tax rate was 19.2% for the six months ended June 30, 2021, compared with 18.4% for the six months ended June 30, 2020. The higher effective tax rate for the six months ended June 30, 2021, was primarily attributable to: • a $17 million and a $24 million discrete tax benefit recorded in the six months ended June 30, 2021 and 2020, respectively, related to the excess tax benefits for share-based payments; and • a $7 million discrete tax benefit recorded in the six months ended June 30, 2020 related to a remeasurement of deferred taxes resulting from the integration of acquired businesses, partially offset by: • changes in the jurisdictional mix of earnings, which includes the impact of the location of earnings from operations and repatriation costs. The jurisdictional mix of earnings can vary as a result of repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items. B. Deferred Taxes As of June 30, 2021, the total net deferred income tax liability of $278 million is included in Noncurrent deferred tax assets ($103 million) and Noncurrent deferred tax liabilities ($381 million). As of December 31, 2020, the total net deferred income tax liability of $284 million is included in Noncurrent deferred tax assets ($94 million) and Noncurrent deferred tax liabilities ($378 million). C. Tax Contingencies As of June 30, 2021, the net tax liabilities associated with uncertain tax positions of $194 million (exclusive of interest and penalties related to uncertain tax positions of $16 million) are included in Noncurrent deferred tax assets and Other noncurrent assets ($2 million) and Other taxes payable ($192 million). As of December 31, 2020, the net tax liabilities associated with uncertain tax positions of $188 million (exclusive of interest and penalties related to uncertain tax positions of $14 million) are included in Noncurrent deferred tax assets and Other noncurrent assets ($1 million) and Other taxes payable ($187 million). Our tax liabilities for uncertain tax positions relate primarily to issues common among multinational corporations. Any settlements or statute of limitations expirations could result in a significant decrease in our uncertain tax positions. Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate. We do not expect that within the next twelve months any of our uncertain tax positions 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 uncertain tax positions 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 changes related to our uncertain tax positions, and such changes could be significant.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2021
Financial Instruments [Abstract]
Financial Instruments	9. Financial Instruments A. Debt Credit Facilities In December 2016, we entered into an amended and restated revolving credit agreement with a syndicate of banks providing for a multi-year $1.0 billion senior unsecured revolving credit facility (the credit facility). In December 2018, the maturity for the amended and restated revolving credit agreement was extended through December 2023. Subject to certain conditions, we have the right to increase the credit facility to up to $1.5 billion. The credit facility contains a financial covenant requiring us to not exceed a maximum total leverage ratio (the ratio of consolidated net debt as of the end of the period to consolidated Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) for such period) of 3.50:1. Upon entering into a material acquisition, the maximum total leverage ratio increases to 4.00:1, and extends until the fourth full consecutive fiscal quarter ended immediately following the consummation of a material acquisition. The credit facility also contains a financial covenant requiring that we maintain a minimum interest coverage ratio (the ratio of EBITDA at the end of the period to interest expense for such period) of 3.50:1. In addition, the credit facility contains other customary covenants. We were in compliance with all financial covenants as of June 30, 2021 and December 31, 2020. There were no amounts drawn under the credit facility as of June 30, 2021 or December 31, 2020. We have additional lines of credit and other credit arrangements with a group of banks and other financial intermediaries for general corporate purposes. We maintain cash and cash equivalent balances in excess of our outstanding short-term borrowings. As of June 30, 2021, we had access to $79 million of lines of credit which expire at various times through 2021 and are generally renewed annually. There were $4 million of borrowings outstanding related to these facilities as of June 30, 2021 and December 31, 2020. Commercial Paper Program In February 2013, we entered into a commercial paper program with a capacity of up to $1.0 billion. As of June 30, 2021 and December 31, 2020, there was no commercial paper outstanding under this program. Senior Notes and Other Long-Term Debt On May 12, 2020, we issued $1.25 billion aggregate principal amount of our senior notes (2020 senior notes), with an original issue discount of $10 million. These notes are comprised of $750 million aggregate principal amount of 2.000% senior notes due 2030 and $500 million aggregate principal amount of 3.000% senior notes due 2050. On October 13, 2020, the net proceeds were used to repay in full the aggregate principal amount of our 3.450% 2015 senior notes due 2020 and the remainder will be used for general corporate purposes. On August 20, 2018, we issued $1.5 billion aggregate principal amount of our senior notes (2018 senior notes), with an original issue discount of $4 million. On September 12, 2017, we issued $1.25 billion aggregate principal amount of our senior notes (2017 senior notes), with an original issue discount of $7 million. On November 13, 2015, we issued $1.25 billion aggregate principal amount of our senior notes (2015 senior notes), with an original issue discount of $2 million. On January 28, 2013, we issued $3.65 billion aggregate principal amount of our senior notes (2013 senior notes) in a private placement, with an original issue discount of $10 million. The 2013, 2015, 2017, 2018 and 2020 senior notes are governed by an indenture and supplemental indenture (collectively, the indenture) between us and Deutsche Bank Trust Company Americas, as trustee. The indenture contains certain covenants, including limitations on our and certain of our subsidiaries' ability to incur liens or engage in sale-leaseback transactions. The indenture also contains restrictions on our ability to consolidate, merge or sell substantially all of our assets. In addition, the indenture contains other customary terms, including certain events of default, upon the occurrence of which the 2013, 2015, 2017, 2018 and 2020 senior notes may be declared immediately due and payable. Pursuant to the indenture, we are able to redeem the 2013, 2015, 2017 and 2020 senior notes and the 2018 fixed rate senior notes or any series, in whole or in part, at any time by paying a “make whole” premium, plus accrued and unpaid interest to, but excluding, the date of redemption. The 2018 floating rate senior notes are not redeemable at our option prior to their maturity date. Pursuant to our tax matters agreement with Pfizer, we will not be permitted to redeem the 2013 senior notes due 2023 pursuant to this optional redemption provision, except under limited circumstances. Upon the occurrence of a change of control of us and a downgrade of the 2013, 2015, 2017, 2018 and 2020 senior notes below an investment grade rating by each of Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, we are, in certain circumstances, required to make an offer to repurchase all of the outstanding 2013, 2015, 2017, 2018 and 2020 senior notes at a price equal to 101% of the aggregate principal amount of the 2013, 2015, 2017, 2018 and 2020 senior notes together with accrued and unpaid interest to, but excluding, the date of repurchase. The components of our long-term debt are as follows: June 30, December 31, (MILLIONS OF DOLLARS) 2021 2020 2018 floating rate (three-month USD LIBOR plus 0.44%) senior notes due 2021 $ 300 $ 300 3.250% 2018 senior notes due 2021 300 300 3.250% 2013 senior notes due 2023 1,350 1,350 4.500% 2015 senior notes due 2025 750 750 3.000% 2017 senior notes due 2027 750 750 3.900% 2018 senior notes due 2028 500 500 2.000% 2020 senior notes due 2030 750 750 4.700% 2013 senior notes due 2043 1,150 1,150 3.950% 2017 senior notes due 2047 500 500 4.450% 2018 senior notes due 2048 400 400 3.000% 2020 senior notes due 2050 500 500 7,250 7,250 Unamortized debt discount / debt issuance costs (63) (66) Less current portion of long-term debt 600 600 Cumulative fair value adjustment for interest rate swap contracts 5 11 Long-term debt, net of discount and issuance costs $ 6,592 $ 6,595 The fair value of our long-term debt was $7,537 million and $7,835 million as of June 30, 2021, and December 31, 2020, respectively, and has been determined using a third-party matrix-pricing model that uses significant inputs derived from, or corroborated by, observable market data and Zoetis’ credit rating (Level 2 inputs). The principal amount of long-term debt outstanding, as of June 30, 2021, matures in the following years: After (MILLIONS OF DOLLARS) 2021 2022 2023 2024 2025 2025 Total Maturities $ 600 $ — $ 1,350 $ — $ 750 $ 4,550 $ 7,250 Interest Expense Interest expense, net of capitalized interest, was $57 million and $114 million for the three and six months ended June 30, 2021, respectively, and $58 million and $111 million for the three and six months ended June 30, 2020, respectively. Capitalized interest expense was $4 million and $9 million for the three and six months ended June 30, 2021, respectively, and $4 million and $8 million for the three and six months ended June 30, 2020, respectively. B. Derivative Financial Instruments Foreign Exchange 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. All derivative financial instruments used to manage foreign currency risk are measured at fair value and are reported as assets or liabilities on the condensed consolidated balance sheet. The derivative financial instruments primarily offset exposures in the Canadian dollar, Chinese yuan, Danish krone, euro, Japanese yen, and Norwegian krone. Changes in fair value are reported in earnings or in Accumulated other comprehensive income/(loss), depending on the nature and purpose of the financial instrument, as follows: • For foreign exchange contracts not designated as hedging instruments, we recognize the gains and losses on forward-exchange contracts 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 exchange derivative financial instruments mature within 60 days and all mature within three years. • For cross-currency interest rate swaps, which are designated as a hedge against our net investment in foreign operations, changes in the fair value are recorded as a component of cumulative translation adjustment within Accumulated other comprehensive income/(loss) and reclassified into earnings when the foreign investment is sold or substantially liquidated. Gains and losses excluded from the assessment of hedge effectiveness are recognized in earnings ( Interest expense—net of capitalized interest) . The cash flows from these contracts are reflected within the investing section of our Condensed Consolidated Statement of Cash Flows. The cross-currency interest rate swap contracts have varying maturities of up to five years. Interest Rate Risk The company may use interest rate swap contracts on certain investing and borrowing transactions to manage its net exposure to interest rates and to reduce its overall cost of borrowing. • In anticipation of issuing fixed-rate debt, we may use forward-starting interest rate swaps that are designated as cash flow hedges to hedge against changes in interest rates that could impact expected future issuances of debt. Unrealized gains or losses on the forward-starting interest rate swaps are reported in Accumulated other comprehensive loss and are recognized in earnings over the life of the future fixed rate notes. When the company discontinues hedge accounting because it is no longer probable that an anticipated transaction will occur within the originally expected period of execution, or within an additional two-month period thereafter, changes to fair value accumulated in other comprehensive income are recognized immediately in earnings. • As of June 30, 2021, we had outstanding forward-starting interest rate swaps, having an effective date and mandatory termination date in March 2023, to hedge against interest rate exposure related principally to the anticipated future issuance of fixed-rate debt to be used primarily to refinance our 3.250% 2013 senior notes due 2023, and a forward-starting interest rate swap, having an effective date and mandatory termination date in March 2026, to hedge against interest rate exposure related principally to the anticipated future issuance of fixed-rate debt to be used primarily to refinance our 4.500% senior notes due 2025. • We may use fixed-to-floating interest rate swaps that are designated as fair value hedges to hedge against changes in the fair value of certain fixed-rate debt attributable to changes in the benchmark LIBOR rate. These derivative instruments effectively convert a portion of the company’s long-term debt from fixed rate to floating rate debt based on three-month LIBOR plus a spread. Gains or losses on the fixed to floating interest rate swaps due to changes in LIBOR are recorded in Interest expense, net of capitalized interest. Changes in the fair value of the fixed-to-floating interest rate swaps are offset by changes in the fair value of the underlying fixed rate debt. As of June 30, 2021, we had outstanding fixed-to-floating interest rate swaps that correspond to a portion of the 3.900% 2018 senior notes due 2028. The amounts recorded during the three and six months ended June 30, 2021 for changes in the fair value of these hedges are not material to our consolidated financial statements. Outstanding Positions The aggregate notional amounts of derivative instruments are as follows: Notional June 30, December 31, (MILLIONS) 2021 2020 Foreign currency forward-exchange contracts $ 1,549 $ 1,633 Cross-currency interest rate swap contracts (in foreign currency): Euro 650 650 Danish krone 600 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 550 $ 550 Fixed-to-floating interest rate swap contracts $ 150 $ 150 Fair Value of Derivative Instruments The classification and fair values of derivative instruments are as follows: Fair Value of Derivatives June 30, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2021 2020 Derivatives Not Designated as Hedging Instruments Foreign currency forward-exchange contracts Other current assets $ 5 $ 10 Foreign currency forward-exchange contracts Other current liabilities (16) (16) Total derivatives not designated as hedging instruments $ (11) $ (6) Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 18 $ 6 Forward-starting interest rate swap contracts Other noncurrent liabilities (4) (17) Cross-currency interest rate swap contracts Other current assets 16 2 Cross-currency interest rate swap contracts Other noncurrent assets 8 5 Cross-currency interest rate swap contracts Other current liabilities — (21) Fixed-to-floating interest rate swap contracts Other noncurrent assets 5 11 Total derivatives designated as hedging instruments 43 (14) Total derivatives $ 32 $ (20) The company’s cross-currency interest rate swaps are subject to master netting arrangements to mitigate credit risk by permitting net settlement of transactions with the same counterparty. We may also enter into collateral security arrangements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. At June 30, 2021, there was $21 million of collateral received related to forward-starting interest rate swap contracts and long-term cross-currency interest rate swaps recorded in Other noncurrent assets . We use a market approach in valuing financial instruments on a recurring basis. Our derivative financial instruments are measured at fair value on a recurring basis using Level 2 inputs in the calculation of fair value. The amounts of net (losses)/gains on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Foreign currency forward-exchange contracts $ (6) $ 4 $ (11) $ 10 These amounts were substantially offset in Other (income)/deductions—net by the effect of changing exchange rates on the underlying foreign currency exposures. The amounts of unrecognized net (losses)/gains on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive income/(loss) , are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Forward-starting interest rate swap contracts $ (20) $ — $ 19 $ (27) Cross-currency interest rate swap contracts $ (8) $ (14) $ 17 $ 3 Gains on cross-currency interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Cross-currency interest rate swap contracts $ 3 $ 4 $ 6 $ 10 The net amount of deferred losses related to derivative instruments designated as cash flow hedges that is expected to be reclassified from Accumulated other comprehensive income/(loss) into earnings over the next 12 months is $1 million.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Inventories	10. Inventories The components of inventory are as follows: June 30, December 31, (MILLIONS OF DOLLARS) 2021 2020 Finished goods $ 844 $ 805 Work-in-process 657 594 Raw materials and supplies 301 229 Inventories $ 1,802 $ 1,628

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	11. Goodwill and Other Intangible Assets A. Goodwill The components of, and changes in, the carrying amount of goodwill are as follows: (MILLIONS OF DOLLARS) U.S. International Total Balance, December 31, 2020 $ 1,425 $ 1,269 $ 2,694 Adjustments (1) 2 1 Other (a) — 23 23 Balance, June 30, 2021 $ 1,424 $ 1,294 $ 2,718 (a) Includes adjustments for foreign currency translation. The gross goodwill balance was $3,254 million and $3,230 million as of June 30, 2021 and December 31, 2020, respectively. Accumulated goodwill impairment losses were $536 million as of June 30, 2021 and December 31, 2020. B. Other Intangible Assets The components of identifiable intangible assets are as follows: As of June 30, 2021 As of December 31, 2020 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 $ 2,006 $ (896) $ 1,110 $ 1,968 $ (809) $ 1,159 Brands and tradenames 428 (253) 175 427 (243) 184 Other 479 (323) 156 474 (306) 168 Total finite-lived intangible assets 2,913 (1,472) 1,441 2,869 (1,358) 1,511 Indefinite-lived intangible assets: Brands and tradenames 104 — 104 104 — 104 In-process research and development 88 — 88 88 — 88 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 199 — 199 199 — 199 Identifiable intangible assets $ 3,112 $ (1,472) $ 1,640 $ 3,068 $ (1,358) $ 1,710 C. Amortization Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as it benefits multiple business functions. Amortization expense related to finite-lived acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, general and administrative expenses or Research and development expenses , as appropriate. Total amortization expense for finite-lived intangible assets was $52 million and $103 million for the three and six months ended June 30, 2021, respectively, and $61 million and $122 million for the three and six months ended June 30, 2020, respectively.

Share-Based Payments

Share-Based Payments	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Share-Based Payments	12. Share-based Payments The Zoetis 2013 Equity and Incentive Plan (the 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. The components of share-based compensation expense are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Stock options / stock appreciation rights $ 3 $ 2 $ 5 $ 5 RSUs / DSUs 9 9 17 17 PSUs 4 5 7 10 Share-based compensation expense—total (a) $ 16 $ 16 $ 29 $ 32 (a) Amounts capitalized to inventory were insignificant for the three and six months ended June 30, 2021 and 2020. During the six months ended June 30, 2021, the company granted 284,198 stock options with a weighted-average exercise price of $160.73 per stock option and a weighted-average fair value of $37.81 per stock option. 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. The weighted-average fair value was estimated based on the following assumptions: risk-free interest rate of 0.53%; expected dividend yield of 0.62%; expected stock price volatility of 27.94%; and expected term of 5.0 years. In general, stock options vest after three years of continuous service and the values determined through this fair-value based method generally are amortized on a straight-line basis over the vesting term into Cost of sales, Selling, general and administrative expenses, or Research and development expenses, as appropriate. During the six months ended June 30, 2021, the company granted 255,169 RSUs, with a weighted-average grant date fair value of $163.35 per RSU. RSUs are accounted for using a fair-value-based method that utilizes the closing price of Zoetis common stock on the date of grant. In general, RSUs vest after three years of continuous service from the grant date and the values generally are amortized on a straight-line basis over the vesting term into Cost of sales, Selling, general and administrative expenses, or Research and development expenses, as appropriate. During the six months ended June 30, 2021, the company granted 103,759 PSUs with a weighted-average grant date fair value of $208.81 per PSU. 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 stock market index at the start of the performance period, excluding companies that during the performance period are acquired or 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 the S&P 500 companies, which were 28.9% and 38.1%, respectively. Depending on the company’s Relative TSR performance at the end of the performance period, the recipient may earn from 0% to 200% of the target number of units. Vested units are settled in shares of the company’s common stock. PSU values are amortized on a straight-line basis over the vesting term into Cost of sales, Selling, general and administrative expenses, or Research and development expenses, as appropriate.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Stockholders' Equity	13. Stockholders' Equity Zoetis is authorized to issue 6 billion shares of common stock and 1 billion shares of preferred stock. In December 2018, the company's Board of Directors authorized a $2.0 billion share repurchase program. As of June 30, 2021, there was approximately $1.1 billion remaining under this authorization. Purchases of Zoetis shares may be made at the discretion of management, depending on market conditions and business needs. The company temporarily suspended share repurchases beginning in the second quarter of 2020. In January 2021, the company resumed share repurchases under its share repurchase program. Accumulated other comprehensive loss Changes, net of tax, in accumulated other comprehensive loss, were as follows: Currency Translation Adjustments Other Currency Accumulated Other Cash Flow Net Investment Translation Comprehensive (MILLIONS OF DOLLARS) Hedges Hedges Adjustments Benefit Plans Loss Balance, December 31, 2020 $ (15) $ (37) $ (655) $ (23) $ (730) Other comprehensive income, net of tax 20 17 70 — 107 Balance, June 30, 2021 $ 5 $ (20) $ (585) $ (23) $ (623) Balance, December 31, 2019 $ — $ 21 $ (724) $ (23) $ (726) Other comprehensive (loss)/income, net of tax (32) 3 (101) — (130) Balance, June 30, 2020 $ (32) $ 24 $ (825) $ (23) $ (856)

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Earnings per Share	14. Earnings per Share The following table presents the calculation of basic and diluted earnings per share: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) June 30, June 30, 2021 2020 2021 2020 Numerator Net income before allocation to noncontrolling interests $ 511 $ 376 $ 1,069 $ 799 Less: Net loss attributable to noncontrolling interests (1) (1) (2) (1) Net income attributable to Zoetis Inc. $ 512 $ 377 $ 1,071 $ 800 Denominator Weighted-average common shares outstanding 474.8 475.3 475.2 475.4 Common stock equivalents: stock options, RSUs, PSUs and DSUs 2.2 2.8 2.3 3.2 Weighted-average common and potential dilutive shares outstanding 477.0 478.1 477.5 478.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.08 $ 0.79 $ 2.25 $ 1.68 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.07 $ 0.79 $ 2.24 $ 1.67 The number of stock options outstanding under the company's Equity Plan that were excluded from the computation of diluted earnings per share, as the effect would have been antidilutive, were de minimis for the three and six months ended June 30, 2021 and 2020.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. 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. Income Taxes . 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. We anticipate that the Phase II testing will begin in the latter part of 2021 or in 2022. 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 State Circuit Court 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. This appeal remains pending before the Circuit Court. 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. 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. Due to the uncertainty with respect to the outcome of the appeal to be filed by the EC, the company has not reflected any potential benefits associated with the decision of the General Court in its consolidated financial statements as of June 30, 2021. We will continue to monitor the developments of the appeal and its ultimate resolution. Alpharma The EC published a decision on alleged competition law infringements by several human health pharmaceutical companies on June 19, 2013. One of the involved legal entities is Alpharma LLC (previously having the name Zoetis Products LLC). Alpharma LLC's involvement is solely related to its human health activities prior to Pfizer's acquisition of King/Alpharma. Zoetis paid a fine in the amount of euro 11 million (approximately $14 million) and was reimbursed in full by Pfizer in accordance with the Global Separation Agreement between Pfizer and Zoetis, which provides that Pfizer is obligated to indemnify Zoetis for any liabilities arising out of claims not related to its animal health assets. We filed an appeal of the decision on September 6, 2013, to the General Court of the European Union. On September 8, 2016, the General Court upheld the decision of the European Commission. On November 25, 2016, we filed an appeal to the Court of Justice of the European Union. On January 24, 2019, the Court heard oral argument on the merits of the appeal. On June 4, 2020, the Advocate General issued his non-binding opinion, which largely confirmed the decision of the General Court. On March 25, 2021, the Court of Justice affirmed the decision of the General Court. Since the penalty has already been paid, no further action is needed, and the proceedings involving the EC are now concluded. B. Guarantees and Indemnifications

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment Information	16. Segment Information Operating Segments We manage our operations through two geographic operating segments: the U.S. and International. Each operating segment has responsibility for its commercial activities. Within each of these operating segments, we offer a diversified product portfolio, including parasiticides, vaccines, anti-infectives, dermatology, medicated feed additives, animal health diagnostics and other pharmaceuticals, for both livestock and companion animal customers. Our chief operating decision maker uses the revenue and earnings of the two operating segments, among other factors, for performance evaluation and resource allocation. Beginning in the first quarter of 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. 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 Client Supply Services (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 platform 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. Selected Statement of Income Information Earnings Depreciation and Amortization (a) Three Months Ended Three Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 U.S. Revenue $ 1,004 $ 823 Cost of sales 192 154 Gross profit 812 669 Gross margin 80.9 % 81.3 % Operating expenses 170 136 Other (income)/deductions-net 1 3 U.S. Earnings 641 530 $ 14 $ 12 International Revenue (b) 924 708 Cost of sales 278 228 Gross profit 646 480 Gross margin 69.9 % 67.8 % Operating expenses 147 117 Other (income)/deductions-net — 1 International Earnings 499 362 18 12 Total operating segments 1,140 892 32 24 Other business activities (98) (90) 7 7 Reconciling Items: Corporate (262) (194) 28 26 Purchase accounting adjustments (44) (53) 44 53 Acquisition-related costs (2) (7) — — Certain significant items (c) (24) (6) — — Other unallocated (74) (60) 1 1 Total Earnings (d) $ 636 $ 482 $ 112 $ 111 (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 $209 million and $161 million for the three months ended June 30, 2021 and 2020, respectively. (c) For the three months ended June 30, 2021, primarily represents asset impairment charges related to the consolidation of manufacturing sites in China, employee termination costs related to cost-reduction and productivity initiatives and a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the three months ended June 30, 2020, primarily represents CEO transition-related costs of $5 million. (d) Defined as income before provision for taxes on income. Earnings Depreciation and Amortization (a) Six Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 U.S. Revenue $ 1,937 $ 1,609 Cost of sales 376 321 Gross profit 1,561 1,288 Gross margin 80.6 % 80.0 % Operating expenses 301 261 Other (income)/deductions-net 2 4 U.S. Earnings 1,258 1,023 $ 27 $ 25 International Revenue (b) 1,846 1,436 Cost of sales 560 452 Gross profit 1,286 984 Gross margin 69.7 % 68.5 % Operating expenses 277 242 Other (income)/deductions-net — 1 International Earnings 1,009 741 35 26 Total operating segments 2,267 1,764 62 51 Other business activities (195) (177) 14 13 Reconciling Items: Corporate (492) (381) 55 48 Purchase accounting adjustments (88) (107) 88 107 Acquisition-related costs (7) (14) — — Certain significant items (c) (32) 5 — — Other unallocated (130) (111) 2 2 Total Earnings (d) $ 1,323 $ 979 $ 221 $ 221 (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 $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively. (c) For the six months ended June 30, 2021, primarily represents asset impairment charges related to the consolidation of manufacturing sites in China, employee termination costs related to cost-reduction and productivity initiatives and a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the six months ended June 30, 2020, primarily represents 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 $17 million, partially offset by CEO transition-related costs of $9 million.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events On August 4, 2021, the Company announced that it has 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. The transaction is subject to customary closing conditions and the satisfaction of regulatory requirements. We expect to complete the acquisition in the first half of 2022.

Accounting Standards (Policies)

Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements were prepared following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three and six months ended May 31, 2021 and May 31, 2020.
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
Tax Contingencies	Our tax liabilities for uncertain tax positions relate primarily to issues common among multinational corporations. Any settlements or statute of limitations expirations could result in a significant decrease in our uncertain tax positions. Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate. We do not expect that within the next twelve months any of our uncertain tax positions 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 uncertain tax positions 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 changes related to our uncertain tax positions, and such changes could be significant.
Legal Proceedings	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.
Guarantees and Indemnifications	B. Guarantees and IndemnificationsIn 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 June 30, 2021, recorded amounts for the estimated fair value of these indemnifications were not significant.
Segment Information	Operating Segments We manage our operations through two geographic operating segments: the U.S. and International. Each operating segment has responsibility for its commercial activities. Within each of these operating segments, we offer a diversified product portfolio, including parasiticides, vaccines, anti-infectives, dermatology, medicated feed additives, animal health diagnostics and other pharmaceuticals, for both livestock and companion animal customers. Our chief operating decision maker uses the revenue and earnings of the two operating segments, among other factors, for performance evaluation and resource allocation. Beginning in the first quarter of 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. 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 Client Supply Services (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 platform 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.

Revenue Revenue Recognition and

Revenue Revenue Recognition and Deferred Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]
Revenue from External Customers by Geographic Areas	The following tables present our revenue disaggregated by geographic area, species, and major product category: Revenue by geographic area Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 United States $ 1,004 $ 823 $ 1,937 $ 1,609 Australia 69 51 126 94 Brazil 75 56 149 119 Canada 67 54 113 94 Chile 34 25 68 48 China 94 66 217 132 France 32 24 67 53 Germany 50 40 88 74 Italy 32 14 57 35 Japan 50 53 97 94 Mexico 34 26 67 58 Spain 33 24 64 52 United Kingdom 43 26 112 81 Other developed markets 112 90 223 177 Other emerging markets 199 159 398 325 1,928 1,531 3,783 3,045 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082
Revenue from External Customers by Major Species	Revenue by major species Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 U.S. Companion animal $ 794 $ 594 $ 1,452 $ 1,093 Livestock 210 229 485 516 1,004 823 1,937 1,609 International Companion animal 435 288 853 586 Livestock 489 420 993 850 924 708 1,846 1,436 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082
Revenue from External Customers by Species	Revenue by species Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Companion Animal: Dogs and Cats $ 1,161 $ 831 $ 2,177 $ 1,577 Horses 68 51 128 102 1,229 882 2,305 1,679 Livestock: Cattle 342 320 741 690 Swine 161 146 351 303 Poultry 134 135 265 283 Fish 39 30 76 56 Sheep and other 23 18 45 34 699 649 1,478 1,366 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082
Schedule of Significant Product Revenues	Revenue by major product category Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Parasiticides $ 460 $ 307 $ 850 $ 562 Vaccines 417 336 830 685 Anti-infectives 259 241 580 521 Dermatology 285 227 533 424 Other pharmaceuticals 248 192 474 389 Medicated feed additives 103 109 215 234 Animal health diagnostics 99 69 188 129 Other non-pharmaceuticals 57 50 113 101 1,928 1,531 3,783 3,045 Contract manufacturing & human health 20 17 36 37 Total Revenue $ 1,948 $ 1,548 $ 3,819 $ 3,082

Restructuring Charges and Oth_2

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)	6 Months Ended
	Jun. 30, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ 2 $ 6 $ 5 $ 12 Restructuring charges (b) : Employee termination costs 6 2 10 5 Asset impairment charges 13 — 13 — Exit costs — — 2 — Total Restructuring charges and certain acquisition-related costs $ 21 $ 8 $ 30 $ 17 (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) The restructuring charges for the three and six months ended June 30, 2021 primarily represents asset impairment charges related to the consolidation of manufacturing sites in China and employee termination costs associated with cost-reduction and productivity initiatives. The restructuring charges for the three and six months ended June 30, 2020 primarily relate to CEO transition-related costs which are associated with Manufacturing/research/corporate. (MILLIONS OF DOLLARS) Accrual (a) Balance, December 31, 2020 (b) $ 21 Provision 25 Non-cash activity (13) Utilization and other (c) (8) Balance, June 30, 2021 (b) $ 25 (a) Changes in our restructuring accrual represents employee termination and exit costs. (b) At June 30, 2021 and December 31, 2020, included in Accrued expenses ($10 million and $6 million, respectively) and Other noncurrent liabilities ($15 million).

Other (Income)_Deductions - N_2

Other (Income)/Deductions - Net (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income and Expenses [Abstract]
Components of Other (Income)/Deductions—Net	The components of Other (income)/deductions—net are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Royalty-related income $ (2) $ (5) $ (4) $ (6) Interest income (2) (2) (3) (8) Identifiable intangible asset impairment charges — 3 — 3 Net loss (gain) on sale of assets (a) 3 (1) 3 (18) Foreign currency loss (b) 9 6 12 11 Impairment of an equity investment — 4 — 4 Other, net 2 — 4 (1) Other (income)/deductions—net $ 10 $ 5 $ 12 $ (15) (a) For the three and six months ended June 30, 2021, represents a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the six months ended June 30, 2020, primarily represents a net gain resulting from a cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites. (b) Primarily driven by costs related to hedging and exposures to certain emerging and developed market currencies.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Financial Instruments [Abstract]
Schedule of Long-term Debt Instruments	The components of our long-term debt are as follows: June 30, December 31, (MILLIONS OF DOLLARS) 2021 2020 2018 floating rate (three-month USD LIBOR plus 0.44%) senior notes due 2021 $ 300 $ 300 3.250% 2018 senior notes due 2021 300 300 3.250% 2013 senior notes due 2023 1,350 1,350 4.500% 2015 senior notes due 2025 750 750 3.000% 2017 senior notes due 2027 750 750 3.900% 2018 senior notes due 2028 500 500 2.000% 2020 senior notes due 2030 750 750 4.700% 2013 senior notes due 2043 1,150 1,150 3.950% 2017 senior notes due 2047 500 500 4.450% 2018 senior notes due 2048 400 400 3.000% 2020 senior notes due 2050 500 500 7,250 7,250 Unamortized debt discount / debt issuance costs (63) (66) Less current portion of long-term debt 600 600 Cumulative fair value adjustment for interest rate swap contracts 5 11 Long-term debt, net of discount and issuance costs $ 6,592 $ 6,595
Schedule of Maturities of Long-term Debt	The principal amount of long-term debt outstanding, as of June 30, 2021, matures in the following years: After (MILLIONS OF DOLLARS) 2021 2022 2023 2024 2025 2025 Total Maturities $ 600 $ — $ 1,350 $ — $ 750 $ 4,550 $ 7,250
Schedule of Derivative Instruments	The aggregate notional amounts of derivative instruments are as follows: Notional June 30, December 31, (MILLIONS) 2021 2020 Foreign currency forward-exchange contracts $ 1,549 $ 1,633 Cross-currency interest rate swap contracts (in foreign currency): Euro 650 650 Danish krone 600 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 550 $ 550 Fixed-to-floating interest rate swap contracts $ 150 $ 150
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The classification and fair values of derivative instruments are as follows: Fair Value of Derivatives June 30, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2021 2020 Derivatives Not Designated as Hedging Instruments Foreign currency forward-exchange contracts Other current assets $ 5 $ 10 Foreign currency forward-exchange contracts Other current liabilities (16) (16) Total derivatives not designated as hedging instruments $ (11) $ (6) Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 18 $ 6 Forward-starting interest rate swap contracts Other noncurrent liabilities (4) (17) Cross-currency interest rate swap contracts Other current assets 16 2 Cross-currency interest rate swap contracts Other noncurrent assets 8 5 Cross-currency interest rate swap contracts Other current liabilities — (21) Fixed-to-floating interest rate swap contracts Other noncurrent assets 5 11 Total derivatives designated as hedging instruments 43 (14) Total derivatives $ 32 $ (20)
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The amounts of net (losses)/gains on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Foreign currency forward-exchange contracts $ (6) $ 4 $ (11) $ 10
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 income/(loss) , are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Forward-starting interest rate swap contracts $ (20) $ — $ 19 $ (27) Cross-currency interest rate swap contracts $ (8) $ (14) $ 17 $ 3
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location	Gains on cross-currency interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Cross-currency interest rate swap contracts $ 3 $ 4 $ 6 $ 10

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventory are as follows: June 30, December 31, (MILLIONS OF DOLLARS) 2021 2020 Finished goods $ 844 $ 805 Work-in-process 657 594 Raw materials and supplies 301 229 Inventories $ 1,802 $ 1,628

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the Carrying Amount of Goodwill	The components of, and changes in, the carrying amount of goodwill are as follows: (MILLIONS OF DOLLARS) U.S. International Total Balance, December 31, 2020 $ 1,425 $ 1,269 $ 2,694 Adjustments (1) 2 1 Other (a) — 23 23 Balance, June 30, 2021 $ 1,424 $ 1,294 $ 2,718 (a) Includes adjustments for foreign currency translation.
Components of Identifiable Intangible Assets	The components of identifiable intangible assets are as follows: As of June 30, 2021 As of December 31, 2020 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 $ 2,006 $ (896) $ 1,110 $ 1,968 $ (809) $ 1,159 Brands and tradenames 428 (253) 175 427 (243) 184 Other 479 (323) 156 474 (306) 168 Total finite-lived intangible assets 2,913 (1,472) 1,441 2,869 (1,358) 1,511 Indefinite-lived intangible assets: Brands and tradenames 104 — 104 104 — 104 In-process research and development 88 — 88 88 — 88 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 199 — 199 199 — 199 Identifiable intangible assets $ 3,112 $ (1,472) $ 1,640 $ 3,068 $ (1,358) $ 1,710

Share-Based Payments (Tables)

Share-Based Payments (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Components of Share-based Compensation Expense	The components of share-based compensation expense are as follows: Three Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 Stock options / stock appreciation rights $ 3 $ 2 $ 5 $ 5 RSUs / DSUs 9 9 17 17 PSUs 4 5 7 10 Share-based compensation expense—total (a) $ 16 $ 16 $ 29 $ 32 (a) Amounts capitalized to inventory were insignificant for the three and six months ended June 30, 2021 and 2020.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Changes, Net of Tax, in Accumulated Other Comprehensive Loss	Changes, net of tax, in accumulated other comprehensive loss, were as follows: Currency Translation Adjustments Other Currency Accumulated Other Cash Flow Net Investment Translation Comprehensive (MILLIONS OF DOLLARS) Hedges Hedges Adjustments Benefit Plans Loss Balance, December 31, 2020 $ (15) $ (37) $ (655) $ (23) $ (730) Other comprehensive income, net of tax 20 17 70 — 107 Balance, June 30, 2021 $ 5 $ (20) $ (585) $ (23) $ (623) Balance, December 31, 2019 $ — $ 21 $ (724) $ (23) $ (726) Other comprehensive (loss)/income, net of tax (32) 3 (101) — (130) Balance, June 30, 2020 $ (32) $ 24 $ (825) $ (23) $ (856)

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	The following table presents the calculation of basic and diluted earnings per share: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) June 30, June 30, 2021 2020 2021 2020 Numerator Net income before allocation to noncontrolling interests $ 511 $ 376 $ 1,069 $ 799 Less: Net loss attributable to noncontrolling interests (1) (1) (2) (1) Net income attributable to Zoetis Inc. $ 512 $ 377 $ 1,071 $ 800 Denominator Weighted-average common shares outstanding 474.8 475.3 475.2 475.4 Common stock equivalents: stock options, RSUs, PSUs and DSUs 2.2 2.8 2.3 3.2 Weighted-average common and potential dilutive shares outstanding 477.0 478.1 477.5 478.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.08 $ 0.79 $ 2.25 $ 1.68 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.07 $ 0.79 $ 2.24 $ 1.67

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of Selected Income Statement Information by Segment	Earnings Depreciation and Amortization (a) Six Months Ended Six Months Ended June 30, June 30, (MILLIONS OF DOLLARS) 2021 2020 2021 2020 U.S. Revenue $ 1,937 $ 1,609 Cost of sales 376 321 Gross profit 1,561 1,288 Gross margin 80.6 % 80.0 % Operating expenses 301 261 Other (income)/deductions-net 2 4 U.S. Earnings 1,258 1,023 $ 27 $ 25 International Revenue (b) 1,846 1,436 Cost of sales 560 452 Gross profit 1,286 984 Gross margin 69.7 % 68.5 % Operating expenses 277 242 Other (income)/deductions-net — 1 International Earnings 1,009 741 35 26 Total operating segments 2,267 1,764 62 51 Other business activities (195) (177) 14 13 Reconciling Items: Corporate (492) (381) 55 48 Purchase accounting adjustments (88) (107) 88 107 Acquisition-related costs (7) (14) — — Certain significant items (c) (32) 5 — — Other unallocated (130) (111) 2 2 Total Earnings (d) $ 1,323 $ 979 $ 221 $ 221 (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 $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively. (c) For the six months ended June 30, 2021, primarily represents asset impairment charges related to the consolidation of manufacturing sites in China, employee termination costs related to cost-reduction and productivity initiatives and a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the six months ended June 30, 2020, primarily represents 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 $17 million, partially offset by CEO transition-related costs of $9 million.

Organization (Details)

Organization (Details)	Jun. 30, 2021productCategorycountrygeographicRegionspecie
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 | productCategory	7
Product
Product Information [Line Items]
Number of countries in which entity markets products	100

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	Jun. 30, 2021USD ($)product_category	Jun. 30, 2020USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Number of major product lines | product_category	300
Other current liabilities	$ 8	$ 5
Contract liabilities		$ 13

Revenue - Revenue by Geographic

Revenue - Revenue by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from External Customer [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819	$ 3,082
United States
Revenue from External Customer [Line Items]
Revenue	1,004	823	1,937	1,609
Australia
Revenue from External Customer [Line Items]
Revenue	69	51	126	94
Brazil
Revenue from External Customer [Line Items]
Revenue	75	56	149	119
Canada
Revenue from External Customer [Line Items]
Revenue	67	54	113	94
Chile
Revenue from External Customer [Line Items]
Revenue	34	25	68	48
China
Revenue from External Customer [Line Items]
Revenue	94	66	217	132
France
Revenue from External Customer [Line Items]
Revenue	32	24	67	53
Germany
Revenue from External Customer [Line Items]
Revenue	50	40	88	74
Italy
Revenue from External Customer [Line Items]
Revenue	32	14	57	35
Japan
Revenue from External Customer [Line Items]
Revenue	50	53	97	94
Mexico
Revenue from External Customer [Line Items]
Revenue	34	26	67	58
Spain
Revenue from External Customer [Line Items]
Revenue	33	24	64	52
United Kingdom
Revenue from External Customer [Line Items]
Revenue	43	26	112	81
Other developed markets
Revenue from External Customer [Line Items]
Revenue	112	90	223	177
Other emerging markets
Revenue from External Customer [Line Items]
Revenue	199	159	398	325
Total geographical area
Revenue from External Customer [Line Items]
Revenue	1,928	1,531	3,783	3,045
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	$ 20	$ 17	$ 36	$ 37

Revenue - Revenue by Major Spec

Revenue - Revenue by Major Species (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Revenue from External Customer [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819		$ 3,082
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	20	17	36		37
Companion animal
Revenue from External Customer [Line Items]
Revenue	1,229	882	2,305		1,679
Companion animal | U.S.
Revenue from External Customer [Line Items]
Revenue	794	594	1,452		1,093
Companion animal | International
Revenue from External Customer [Line Items]
Revenue	435	288	853		586
Livestock
Revenue from External Customer [Line Items]
Revenue	699	649	1,478		1,366
Livestock | U.S.
Revenue from External Customer [Line Items]
Revenue	210	229	485		516
Livestock | International
Revenue from External Customer [Line Items]
Revenue	489	420	993		850
Operating Segments | U.S.
Revenue from External Customer [Line Items]
Revenue	1,004	823	1,937		1,609
Operating Segments | International
Revenue from External Customer [Line Items]
Revenue	$ 924	$ 708	$ 1,846	[1]	$ 1,436	[1]
[1]	Revenue denominated in euros was $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively.

Revenue - Revenue by Species (D

Revenue - Revenue by Species (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from External Customer [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819	$ 3,082
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	20	17	36	37
Dogs and Cats
Revenue from External Customer [Line Items]
Revenue	1,161	831	2,177	1,577
Horses
Revenue from External Customer [Line Items]
Revenue	68	51	128	102
Cattle
Revenue from External Customer [Line Items]
Revenue	342	320	741	690
Swine
Revenue from External Customer [Line Items]
Revenue	161	146	351	303
Poultry
Revenue from External Customer [Line Items]
Revenue	134	135	265	283
Fish
Revenue from External Customer [Line Items]
Revenue	39	30	76	56
Sheep and other
Revenue from External Customer [Line Items]
Revenue	23	18	45	34
Livestock
Revenue from External Customer [Line Items]
Revenue	699	649	1,478	1,366
Companion animal
Revenue from External Customer [Line Items]
Revenue	1,229	882	2,305	1,679
Other pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	$ 248	$ 192	$ 474	$ 389

Revenue - Revenue by Product (D

Revenue - Revenue by Product (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from External Customer [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819	$ 3,082
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	20	17	36	37
Vaccines
Revenue from External Customer [Line Items]
Revenue	417	336	830	685
Parasiticides
Revenue from External Customer [Line Items]
Revenue	460	307	850	562
Anti-infectives
Revenue from External Customer [Line Items]
Revenue	259	241	580	521
Dermatology
Revenue from External Customer [Line Items]
Revenue	285	227	533	424
Other pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	248	192	474	389
Medicated feed additives
Revenue from External Customer [Line Items]
Revenue	103	109	215	234
Animal health diagnostics
Revenue from External Customer [Line Items]
Revenue	99	69	188	129
Other non-pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	57	50	113	101
Total products and services
Revenue from External Customer [Line Items]
Revenue	$ 1,928	$ 1,531	$ 3,783	$ 3,045

Acquisitions and Divestitures (

Acquisitions and Divestitures (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020USD ($)
Business Combinations [Abstract]
Contingent payment received related to sale of certain U.S. manufacturing sites	$ 20

Restructuring Charges and Oth_3

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended
		Jun. 30, 2021		Jun. 30, 2020		Jun. 30, 2021	Jun. 30, 2020		Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Asset write-offs and asset impairments						$ 14	$ 9
Exit costs	[1]	$ 0		$ 0		2	0
Total Restructuring charges and certain acquisition-related costs		21		8		30	17
Restructuring Reserve [Roll Forward]
Restructuring accrual balance	[2],[3]					21
Provision						25
Restructuring Reserve, Settled without Cash						(13)
Utilization and other	[3],[4]					(8)
Restructuring accrual balance	[2],[3]	25				25
Other current liabilities
Restructuring Reserve [Roll Forward]
Accrued expenses		10				10			$ 6
Other noncurrent liabilities
Restructuring Reserve [Roll Forward]
Other noncurrent liabilities		15				15
Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Severance Costs	[1]	6		2		10	5
Facility Closing
Restructuring Cost and Reserve [Line Items]
Asset write-offs and asset impairments		13		0		13	0
Direct Cost
Restructuring Cost and Reserve [Line Items]
Integration costs		$ 2	[5]	$ 6	[5]	$ 5	$ 12	[5]
[1]	The restructuring charges for the three and six months ended June 30, 2021 primarily represents asset impairment charges related to the consolidation of manufacturing sites in China and employee termination costs associated with cost-reduction and productivity initiatives.The restructuring charges for the three and six months ended June 30, 2020 primarily relate to CEO transition-related costs which are associated with Manufacturing/research/corporate.
[2]	At June 30, 2021 and December 31, 2020, included in Accrued expenses ($10 million and $6 million, respectively) and Other noncurrent liabilities
[3]	Changes in our restructuring accrual represents employee termination and exit costs.
[4]	Includes adjustments for foreign currency translation.
[5]	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.

Other (Income)_Deductions - N_3

Other (Income)/Deductions - Net (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Royalty-related income		$ (2)	$ (5)	$ (4)	$ (6)
Interest income		(2)	(2)	(3)	(8)
Foreign currency loss	[1]	9	6	12	11
Other, net		2	0	4	(1)
Other (income)/deductions—net		10	5	12	(15)
Identifiable intangible asset impairment charges		0	3	0	3
Impairment of an equity investment		0	4	0	4
Zoetis Initiatives
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net (gain)/loss on sale of assets					(17)
Reconciling Items | Zoetis Initiatives
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net (gain)/loss on sale of assets	[2]	$ 3	$ (1)	$ 3	$ (18)
[1]	Primarily driven by costs related to hedging and exposures to certain emerging and developed market currencies.
[2]	For the six months ended June 30, 2020, primarily represents a net gain resulting from a cash payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.

Income Taxes - Taxes on Income

Income Taxes - Taxes on Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Contingency [Line Items]
Effective tax rate for income from continuing operations	19.70%	22.00%	19.20%	18.40%
Share-based Payments
Income Tax Contingency [Line Items]
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 4	$ 1	$ 17	$ 24
Integration of Acquired Businesses
Income Tax Contingency [Line Items]
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 7

Income Taxes - Deferred Taxes (

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Noncurrent deferred tax liabilities	$ 278	$ 284
Noncurrent deferred tax assets	103	94
Noncurrent deferred tax liabilities	$ 381	$ 378

Income Taxes - Tax Contingencie

Income Taxes - Tax Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	$ 194	$ 188
Unrecognized tax benefits, income tax penalties and interest accrued	16	14
Noncurrent Deferred Tax Assets
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	2	1
Other Taxes Payable
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	$ 192	$ 187

Financial Instruments - Credit

Financial Instruments - Credit Facilities (Details)	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 79,000,000
Revolving credit facility, minimum interest coverage ratio	3.50
Line of credit facility	$ 4,000,000	$ 4,000,000
Operational Efficiency
Line of Credit Facility [Line Items]
Maximum total leverage ratio	3.50
Maximum total leverage ratio, next 12 months	4
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
Line of credit facility	$ 0	$ 0

Financial Instruments - Commerc

Financial Instruments - Commercial Paper Program (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Feb. 28, 2013
Short-term Debt [Line Items]
Commercial Paper	$ 0	$ 0
Commercial Paper
Short-term Debt [Line Items]
Capacity of commercial paper program			$ 1,000,000,000

Financial Instruments - Senior

Financial Instruments - Senior Notes Offering and Other Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	May 12, 2020	Aug. 20, 2018	Sep. 12, 2017	Nov. 13, 2015	Jan. 28, 2013
Debt Instrument [Line Items]
Debt, principal amount	$ 7,250	$ 7,250
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 | 2020 Senior Notes
Debt Instrument [Line Items]
Debt, principal amount			$ 1,250
Original issue discount			$ 10
Senior Notes | 2.000% 2020 senior notes due 2030
Debt Instrument [Line Items]
Debt, principal amount	$ 750	750
Interest rate percentage	2.00%
Senior Notes | 3.000% 2020 senior notes due 2050
Debt Instrument [Line Items]
Debt, principal amount	$ 500	$ 500
Interest rate percentage	3.00%

Financial Instruments - Schedul

Financial Instruments - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Aug. 20, 2018	Sep. 12, 2017	Nov. 13, 2015	Jan. 28, 2013
Debt Instrument [Line Items]
Debt, principal amount	$ 7,250	$ 7,250
Unamortized debt discount / debt issuance costs	(63)	(66)
Current portion of long-term debt	600	600
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	5	11
Long-term debt, net of discount and issuance costs	6,592	6,595
Senior Notes
Debt Instrument [Line Items]
Debt, principal amount			$ 1,500	$ 1,250	$ 1,250	$ 3,650
Senior Notes | 2018 floating senior notes due 2021
Debt Instrument [Line Items]
Debt, principal amount	$ 300	300
Senior Notes | 2018 floating senior notes due 2021 | LIBOR
Debt Instrument [Line Items]
Interest rate percentage	0.44%
Senior Notes | 3.250% 2018 senior notes due 2021
Debt Instrument [Line Items]
Interest rate percentage	3.25%
Debt, principal amount	$ 300	300
Senior Notes | 3.250% 2013 senior notes due 2023
Debt Instrument [Line Items]
Interest rate percentage	3.25%
Debt, principal amount	$ 1,350	1,350
Senior Notes | 4.500% 2015 senior notes due 2025
Debt Instrument [Line Items]
Interest rate percentage	4.50%
Debt, principal amount	$ 750	750
Senior Notes | 3.000% 2017 senior notes due 2027
Debt Instrument [Line Items]
Interest rate percentage	3.00%
Debt, principal amount	$ 750	750
Senior Notes | 3.900% 2018 senior notes due 2028
Debt Instrument [Line Items]
Interest rate percentage	3.90%
Debt, principal amount	$ 500	500
Senior Notes | 2.000% 2020 senior notes due 2030
Debt Instrument [Line Items]
Interest rate percentage	2.00%
Debt, principal amount	$ 750	750
Senior Notes | 4.700% 2013 senior notes due 2043
Debt Instrument [Line Items]
Interest rate percentage	4.70%
Debt, principal amount	$ 1,150	1,150
Senior Notes | 3.950% 2017 senior notes due 2047
Debt Instrument [Line Items]
Interest rate percentage	3.95%
Debt, principal amount	$ 500	500
Senior Notes | 4.450% 2018 senior notes due 2048
Debt Instrument [Line Items]
Interest rate percentage	4.45%
Debt, principal amount	$ 400	400
Senior Notes | 3.000% 2020 senior notes due 2050
Debt Instrument [Line Items]
Interest rate percentage	3.00%
Debt, principal amount	$ 500	$ 500

Financial Instruments - Fair Va

Financial Instruments - Fair Value of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Senior Notes | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value, debt instrument	$ 7,537	$ 7,835

Financial Instruments - Long-te

Financial Instruments - Long-term Debt Maturity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Financial Instruments [Abstract]
2021	$ 600		$ 600
2022	0		0
2023	1,350		1,350
2024	0		0
2025	750		750
After 2025	4,550		4,550
Total long-term debt	7,250		7,250		$ 7,250
Interest expense, net of capitalized interest	57	$ 58	114	$ 111
Capitalized interest	$ 4	$ 4	$ 9	$ 8

Financial Instruments - Foreign

Financial Instruments - Foreign Exchange Risk (Details)	6 Months Ended
	Jun. 30, 2021
Derivatives Not Designated as Hedging Instruments | Foreign currency forward-exchange contracts
Derivative [Line Items]
Maturity period (in years)	60 days
Derivatives Not Designated as Hedging Instruments | Maximum | Foreign currency forward-exchange contracts
Derivative [Line Items]
Maturity period (in years)	3 years
Derivatives Designated as Hedging Instruments: | Maximum | Cross-currency interest rate swap contracts
Derivative [Line Items]
Maturity period (in years)	5 years

Financial Instruments - Interes

Financial Instruments - Interest Rate Risk (Details) - Senior Notes	Jun. 30, 2021
3.250% 2013 senior notes due 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	3.25%
4.500% 2015 senior notes due 2025
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	4.50%
Senior notes due 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	3.90%

Financial Instruments Derivativ

Financial Instruments Derivative Notional Amounts (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions	Jun. 30, 2021USD ($)	Jun. 30, 2021EUR (€)	Jun. 30, 2021DKK (kr)	Jun. 30, 2021CHF (SFr)	Dec. 31, 2020USD ($)	Dec. 31, 2020EUR (€)	Dec. 31, 2020DKK (kr)	Dec. 31, 2020CHF (SFr)
Cross-currency interest rate swap contracts
Derivative [Line Items]
Derivative notional amount	$ 150	€ 650	kr 600	SFr 25	$ 150	€ 650	kr 600	SFr 25
Derivatives Not Designated as Hedging Instruments | Foreign currency forward-exchange contracts
Derivative [Line Items]
Derivative notional amount	1,549				1,633
Derivatives Designated as Hedging Instruments: | Forward-starting interest rate swaps
Derivative [Line Items]
Derivative notional amount	$ 550				$ 550

Financial Instruments - Fair _2

Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Total derivatives	$ 32		$ 32		$ (20)
Collateral received	21		21
Cash flow hedges gain expected to be reclassified from AOCI into earnings over the next 12 months			1
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Total derivatives	43		43		(14)
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Total derivatives	(11)		(11)		(6)
Foreign currency forward-exchange contracts	(6)	$ 4	(11)	$ 10
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	5		5		10
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	(16)		(16)		(16)
Forward-starting interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	18		18		6
Forward-starting interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	4		4		17
Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	16		16		2
Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	0		0		21
Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	8		8		5
Fixed-to-floating interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	$ 5		$ 5		$ 11

Financial Instruments Cross-cur

Financial Instruments Cross-currency forward-exchange contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized (losses)/gains on derivatives for net investment hedges, net	$ (8)	$ (14)	$ 17	$ 3
Derivatives Designated as Hedging Instruments: | Forward-starting interest rate swap contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized (losses)/gains on derivatives for net investment hedges, net	(20)	0	19	(27)
Derivatives Designated as Hedging Instruments: | Cross-currency interest rate swap contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized (losses)/gains on derivatives for net investment hedges, net	$ (8)	$ (14)	$ 17	$ 3

Financial Instruments Cross-c_2

Financial Instruments Cross-currency interest rate swap contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cross-currency interest rate swap contracts | Derivatives Designated as Hedging Instruments:
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain (Loss) on Components Excluded from Assessment of Interest Rate Fair Value Hedge Effectiveness	$ 3	$ 4	$ 6	$ 10

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods	$ 844	$ 805
Work-in-process	657	594
Raw materials and supplies	301	229
Inventories	$ 1,802	$ 1,628

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 2,694
Adjustments	1
Other	23	[1]
Ending Balance	2,718
United States (U.S.)
Goodwill [Roll Forward]
Beginning Balance	1,425
Adjustments	(1)
Other	0	[1]
Ending Balance	1,424
International
Goodwill [Roll Forward]
Beginning Balance	1,269
Adjustments	2
Other	23	[1]
Ending Balance	$ 1,294
[1]	Includes adjustments for foreign currency translation.

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Gross goodwill	$ 3,254		$ 3,254		$ 3,230
Accumulated goodwill impairment losses	536		536		$ 536
Amortization of intangible assets	$ 52	$ 61	$ 103	$ 122

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 2,913	$ 2,869
Finite-lived intangible assets, accumulated amortization	(1,472)	(1,358)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	1,441	1,511
Total indefinite-lived intangible assets	199	199
Intangible Assets, gross carrying amount	3,112	3,068
Identifiable intangible assets, less accumulated amortization	1,640	1,710
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	104	104
In-process research and development
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	88	88
Product rights
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total 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	2,006	1,968
Finite-lived intangible assets, accumulated amortization	(896)	(809)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	1,110	1,159
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	428	427
Finite-lived intangible assets, accumulated amortization	(253)	(243)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	175	184
Other
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	479	474
Finite-lived intangible assets, accumulated amortization	(323)	(306)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	$ 156	$ 168

Share-Based Payments - Narrativ

Share-Based Payments - Narrative (Details)	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, options granted, shares | shares	284,198
Share-based compensation, weighted average exercise price (in dollars per share)	$ 160.73
Share-based compensation, Options, weighted average grant date fair value (in dollars per share)	$ 37.81
Share-based compensation, risk free interest rate	0.53%
Share-based compensation, expected dividend rate	0.62%
Share-based compensation, expected volatility rate	27.94%
Share-based compensation, expected term	5 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, award vesting period	3 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, award vesting period	3 years
Share-based compensation, granted, shares | shares	255,169
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 163.35
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	28.90%
Share-based compensation, award vesting period	3 years
Share-based compensation, granted, shares | shares	103,759
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 208.81
Performance Shares | PeerCompanies
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	38.10%
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, target number of units percentage	0.00%
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, target number of units percentage	200.00%

Share-Based Payments - Componen

Share-Based Payments - Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	$ 16	$ 16	$ 29	$ 32
Stock options / stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	3	2	5	5
RSUs / DSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	9	9	17	17
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	$ 4	$ 5	$ 7	$ 10

Stockholders' Equity - Changes

Stockholders' Equity - Changes in Common Shares and Treasury Stock (Details) - USD ($) $ in Billions	Jun. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock, shares authorized	6,000,000,000	6,000,000,000
Preferred stock, shares authorized	1,000,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 1.1
December 2018 Share Repurchase Program
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 2

Stockholders' Equity - Change_2

Stockholders' Equity - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 4,092	$ 2,753	$ 3,773	$ 2,708
Other comprehensive income, net of tax	10	(75)	107	(130)
Ending balance	4,352	2,987	4,352	2,987
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(633)	(781)	(730)	(726)
Other comprehensive income, net of tax	10	(75)	107	(130)
Ending balance	(623)	(856)	(623)	(856)
Derivatives Net Unrealized Gains/ (Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(15)	0
Other comprehensive income, net of tax			20	(32)
Ending balance	5	(32)	5	(32)
Net Investment Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(37)	21
Other comprehensive income, net of tax			17	3
Ending balance	(20)	24	(20)	24
Currency Translation Adjustment Net Unrealized Gain/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(655)	(724)
Other comprehensive income, net of tax			70	(101)
Ending balance	(585)	(825)	(585)	(825)
Benefit Plans Actuarial Gains/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(23)	(23)
Other comprehensive income, net of tax			0	0
Ending balance	$ (23)	$ (23)	$ (23)	$ (23)

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator
Net income before allocation to noncontrolling interests	$ 511	$ 376	$ 1,069	$ 799
Less: Net loss attributable to noncontrolling interests	(1)	(1)	(2)	(1)
Net income attributable to Zoetis Inc.	$ 512	$ 377	$ 1,071	$ 800
Denominator
Weighted-average common shares outstanding	474,800,000	475,300,000	475,200,000	475,400,000
Common stock equivalents: stock options, RSUs, PSUs and DSUs	2,200,000	2,800,000	2,300,000	3,200,000
Weighted-average common and potential dilutive shares outstanding	477,000,000	478,100,000	477,500,000	478,600,000
Earnings per share attributable to Zoetis stockholders—basic (in dollars per share)	$ 1.08	$ 0.79	$ 2.25	$ 1.68
Earnings per share attributable to Zoetis stockholders—diluted (in dollars per share)	$ 1.07	$ 0.79	$ 2.24	$ 1.67
Antidilutive securities excluded from computation of earnings per share, amount	0	0	0	0
Other current liabilities	$ 8	$ 5	$ 8	$ 5

Commitments and Contingencies (

Commitments and Contingencies (Details) € in Millions, $ in Millions	May 16, 2016producer	Jun. 03, 2015count	Aug. 31, 2014animal	Apr. 30, 2012	Jun. 30, 2021customer	Jun. 19, 2013EUR (€)	Jun. 19, 2013USD ($)	Feb. 29, 2012defendant
Ulianopolis, Brazil
Loss Contingencies [Line Items]
Number of additional defendants | defendant								5
Number of claims seeking damages | defendant								6
Duration of suspension of lawsuit				1 year
Lasadoil
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 complaints	2	1			3
European Commission
Loss Contingencies [Line Items]
Amount reimbursed by Pfizer						€ 11	$ 14

Segment Information (Details)

Segment Information (Details)	6 Months Ended
	Jun. 30, 2021segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information Selected St

Segment Information Selected Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819		$ 3,082
Cost of sales	568	451	1,117		910
Other (income)/deductions—net	10	5	12		(15)
Income before provision for taxes on income	636	482	1,323	[1]	979	[1]
Depreciation and amortization	112	111	221		221	[1],[2]
Other business activities
Segment Reporting Information [Line Items]
Income before provision for taxes on income	(98)	(90)	(195)		(177)
Depreciation and amortization	7	7	14	[2]	13	[2]
Operating Segments
Segment Reporting Information [Line Items]
Income before provision for taxes on income	1,140	892	2,267		1,764
Depreciation and amortization	32	24	62	[2]	51	[2]
Operating Segments | U.S.
Segment Reporting Information [Line Items]
Revenue	1,004	823	1,937		1,609
Cost of sales	192	154	376		321
Gross profit	$ 812	$ 669	$ 1,561		$ 1,288
Gross margin, percentage	80.90%	81.30%	80.60%		80.00%
Operating expenses	$ 170	$ 136	$ 301		$ 261
Other (income)/deductions—net	1	3	2		4
Income before provision for taxes on income	641	530	1,258		1,023
Depreciation and amortization	14	12	27	[2]	25	[2]
Operating Segments | International
Segment Reporting Information [Line Items]
Revenue	924	708	1,846	[3]	1,436	[3]
Cost of sales	278	228	560		452
Gross profit	$ 646	$ 480	$ 1,286		$ 984
Gross margin, percentage	69.90%	67.80%	69.70%		68.50%
Operating expenses	$ 147	$ 117	$ 277		$ 242
Other (income)/deductions—net	0	1	0		1
Income before provision for taxes on income	499	362	1,009		741
Depreciation and amortization	18	12	35	[2]	26	[2]
Corporate
Segment Reporting Information [Line Items]
Income before provision for taxes on income	(262)	(194)	(492)		(381)
Depreciation and amortization	28	26	55	[2]	48	[2]
Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization	0	0	0	[2]	0	[2]
Purchase accounting adjustments	(44)	(53)	(88)		(107)
Purchase accounting adjustments, Depreciation and Amortization	44	53	88	[2]	107	[2]
Acquisition-related costs	(2)	(7)	(7)		(14)
Certain significant items, Earnings	(24)	(6)	(32)	[4]	5	[4]
Certain significant items, Depreciation and Amortization	0	0	0	[2],[4]	0	[2],[4]
Other unallocated	(74)	(60)	(130)		(111)
Other Unallocated, Depreciation and Amortization	$ 1	$ 1	$ 2	[2]	$ 2	[2]
[1]	Defined as income before provision for taxes on income.
[2]	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.
[3]	Revenue denominated in euros was $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively.
[4]	For the six months ended June 30, 2021, primarily represents asset impairment charges related to the consolidation of manufacturing sites in China, employee termination costs related to cost-reduction and productivity initiatives and a net loss related to the sale of certain assets of our poultry automation business located in the U.S. and Canada. For the six months ended June 30, 2020, primarily represents 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 $17 million, partially offset by CEO transition-related costs of $9 million.

Segment Information Selected _2

Segment Information Selected Statement of Income Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021		Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenue	$ 1,948	$ 1,548	$ 3,819		$ 3,082
Zoetis Initiatives
Segment Reporting Information [Line Items]
Net (gain)/loss on sale of assets					(17)
CEO Transition Costs
Segment Reporting Information [Line Items]
Restructuring and Other Cost Productivity Charges	5				9
International | Operating Segments
Segment Reporting Information [Line Items]
Revenue	924	708	1,846	[1]	1,436	[1]
International | Operating Segments | Euro Member Countries, Euro
Segment Reporting Information [Line Items]
Revenue	$ 209	$ 161	$ 401		$ 331
[1]	Revenue denominated in euros was $401 million and $331 million for the six months ended June 30, 2021 and 2020, respectively.

Uncategorized Items - zts-20210

Label	Element	Value
Dividends Payable	us-gaap_DividendsPayableCurrentAndNoncurrent	$ 95,000,000