Zoetis (ZTS) 10-Q 2 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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		459,113,691
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 2,151	$ 2,002	$ 6,331		$ 6,040
Costs and expenses:
Cost of sales	638	607	1,833		1,801
Selling, general and administrative expenses	525	501	1,586		1,495
Research and development expenses	152	134	440		391
Amortization of intangible assets	38	37	112		115
Restructuring charges and certain acquisition-related costs	16	6	45		9
Interest expense, net of capitalized interest	59	53	180		159
Other (income)/deductions—net	6	(3)	(151)		6
Income before provision for taxes on income	717	667	2,286	[1]	2,064	[1]
Provision for taxes on income	121	139	469		413
Net income before allocation to noncontrolling interests	596	528	1,817		1,651
Less: Net loss attributable to noncontrolling interests	0	(1)	(2)		(2)
Net income attributable to Zoetis Inc.	$ 596	$ 529	$ 1,819		$ 1,653
Earnings per share attributable to Zoetis Inc. stockholders:
Basic (in dollars per share)	$ 1.29	$ 1.13	$ 3.94		$ 3.52
Diluted (in dollars per share)	$ 1.29	$ 1.13	$ 3.93		$ 3.51
Weighted-average common shares outstanding:
Basic (in shares)	460.3	467.8	461.9		470
Diluted (in shares)	461.4	469.1	463		471.6
Dividends paid per common share (in dollars per share)	$ 0	$ 0	$ 0.750		$ 0.650
[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		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income before allocation to noncontrolling interests		$ 596	$ 528	$ 1,817	$ 1,651
Other comprehensive income/(loss), net of tax(a):
Foreign currency translation adjustments	[1]	60	(156)	(6)	(208)
Benefit plans: Actuarial gains, net of tax of $0 and $1 for the three months ended September 30, 2023 and 2022, respectively, and $1 and $1 for the nine months ended September 30, 2023 and 2022, respectively	[1]	0	0	4	1
Other comprehensive income/(loss), net of tax		81	(87)	3	(45)
Comprehensive income before allocation to noncontrolling interests		677	441	1,820	1,606
Less: Comprehensive loss attributable to noncontrolling interests		0	(1)	(2)	(2)
Comprehensive income attributable to Zoetis Inc.		677	442	1,822	1,608
Cash Flow Hedging
Other comprehensive income/(loss), net of tax(a):
Unrealized gains on derivatives for cash flow hedges, net and net investment hedges	[1]	3	30	0	78
Net Investment Hedging
Other comprehensive income/(loss), net of tax(a):
Unrealized gains on derivatives for cash flow hedges, net and net investment hedges	[1]	$ 18	$ 39	$ 5	$ 84
[1]Presented net of reclassification adjustments, which are not material in any period presented.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	$ 1,000	$ 0	$ 1,000	$ 1,000
Cash Flow Hedging
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	1,000	9,000	0	23,000
Net Investment Hedging
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	$ 5,000	$ 11,000	$ 1,000	$ 24,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions		Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	[1]	$ 1,754	$ 3,581
Accounts receivable, less allowance for doubtful accounts of $18 in 2023 and $19 in 2022		1,257	1,215
Inventories		2,744	2,345
Other current assets		467	365
Total current assets		6,222	7,506
Property, plant and equipment, less accumulated depreciation of $2,529 in 2023 and $2,297 in 2022		3,092	2,753
Operating lease right of use assets		226	220
Goodwill		2,762	2,746
Identifiable intangible assets, less accumulated amortization		1,398	1,380
Noncurrent deferred tax assets		190	173
Other noncurrent assets		216	147
Total assets		14,106	14,925
Liabilities and Equity
Short-term borrowings		2	2
Current portion of long-term debt		0	1,350
Accounts payable		388	405
Dividends payable		0	174
Accrued expenses		693	682
Accrued compensation and related items		284	300
Income taxes payable		144	157
Other current liabilities		97	97
Total current liabilities		1,608	3,167
Long-term debt, net of discount and issuance costs		6,552	6,552
Noncurrent deferred tax liabilities		160	142
Operating lease liabilities		191	186
Other taxes payable		262	258
Other noncurrent liabilities		259	217
Total liabilities		9,032	10,522
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $0.01 par value: 6,000,000,000 authorized; 501,891,243 and 501,891,243 shares issued; 459,524,713 and 463,808,059 shares outstanding at September 30, 2023, and December 31, 2022, respectively		5	5
Treasury stock, at cost, 42,366,530 and 38,083,184 shares of common stock at September 30, 2023 and December 31, 2022, respectively		(5,369)	(4,539)
Additional paid-in capital		1,116	1,088
Retained earnings		10,140	8,668
Accumulated other comprehensive loss		(814)	(817)
Total Zoetis Inc. equity		5,078	4,405
Noncontrolling interests		(4)	(2)
Total equity		5,074	4,403
Total liabilities and equity		$ 14,106	$ 14,925
[1]As of September 30, 2023 and December 31, 2022, includes $3 million and $4 million of restricted cash, respectively.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 18	$ 19
Accumulated depreciation	$ 2,529	$ 2,297
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized	6,000,000,000
Common stock issued, shares	501,891,243	501,891,243
Common stock, shares outstanding	459,524,713	463,808,059
Treasury stock, shares	42,366,530	38,083,184
Restricted cash	$ 3	$ 4

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions		Total	Share Repurchase Program	Common Stock	Treasury Stock	Treasury Stock Share Repurchase Program	Additional Paid-in Capital	Additional Paid-in Capital Share Repurchase Program	Retained Earnings	Retained Earnings Share Repurchase Program	Accumulated Other Comprehensive Loss	Equity Attributable to Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2021				501,900,000
Beginning balance at Dec. 31, 2021		$ 4,544		$ 5	$ (2,952)		$ 1,068		$ 7,186		$ (764)	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		1,651							1,653			(2)
Other comprehensive income/(loss), net of tax		(45)									(45)
Treasury stock, beginning balance (in shares) at Dec. 31, 2021					29,300,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares					(6,700,000)	(600,000)
Share-based compensation awards		5			$ 2		3		0
Treasury stock acquired		(1,189)			(1,189)
Employee benefit plan contribution from Pfizer Inc.	[1]	2					2
Dividends, Common Stock		(306)							(306)
Ending balance (in shares) at Sep. 30, 2022				501,900,000
Ending balance at Sep. 30, 2022		4,662		$ 5	$ (4,139)		1,073		8,533		(809)	(1)
Treasury stock, ending balance (in shares) at Sep. 30, 2022					35,400,000
Beginning balance (in shares) at Jun. 30, 2022				501,900,000
Beginning balance at Jun. 30, 2022		4,580		$ 5	$ (3,766)		1,059		8,004		(722)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		528							529			(1)
Other comprehensive income/(loss), net of tax		(87)									(87)
Treasury stock, beginning balance (in shares) at Jun. 30, 2022					33,300,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares					(2,200,000)	100,000
Share-based compensation awards			$ 17			$ 4		$ 13
Treasury stock acquired		(377)			$ 377
Employee benefit plan contribution from Pfizer Inc.		1					1
Ending balance (in shares) at Sep. 30, 2022				501,900,000
Ending balance at Sep. 30, 2022		$ 4,662		$ 5	$ (4,139)		1,073		8,533		(809)	(1)
Treasury stock, ending balance (in shares) at Sep. 30, 2022					35,400,000
Beginning balance (in shares) at Dec. 31, 2022		501,891,243		501,900,000
Beginning balance at Dec. 31, 2022		$ 4,403		$ 5	$ (4,539)		1,088		8,668		(817)	(2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		1,817							1,819			(2)
Other comprehensive income/(loss), net of tax		$ 3									3
Treasury stock, beginning balance (in shares) at Dec. 31, 2022		38,083,184			38,100,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares					(5,000,000)	(700,000)
Share-based compensation awards		$ 61			$ 34		28		(1)
Treasury stock acquired		(864)			(864)
Dividends, Common Stock		$ (346)							(346)
Ending balance (in shares) at Sep. 30, 2023		501,891,243		501,900,000
Ending balance at Sep. 30, 2023		$ 5,074		$ 5	$ (5,369)		1,116		10,140		(814)	(4)
Treasury stock, ending balance (in shares) at Sep. 30, 2023		42,366,530			42,400,000
Beginning balance (in shares) at Jun. 30, 2023				501,900,000
Beginning balance at Jun. 30, 2023		$ 4,621		$ 5	$ (5,126)		1,098		9,543		(895)	(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		596							596			0
Other comprehensive income/(loss), net of tax		81									81
Treasury stock, beginning balance (in shares) at Jun. 30, 2023					41,200,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares					(1,400,000)	200,000
Share-based compensation awards			$ 28			$ 9		$ 18		$ 1
Treasury stock acquired		$ (252)			$ 252
Ending balance (in shares) at Sep. 30, 2023		501,891,243		501,900,000
Ending balance at Sep. 30, 2023		$ 5,074		$ 5	$ (5,369)		$ 1,116		$ 10,140		$ (814)	$ (4)
Treasury stock, ending balance (in shares) at Sep. 30, 2023		42,366,530			42,400,000
[1]Represents contributed capital from Pfizer Inc. associated with service credit continuation for certain Zoetis Inc. employees in Pfizer Inc.'s U.S. qualified defined benefit and U.S. retiree medical plans.

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Operating Activities
Net income before allocation to noncontrolling interests		$ 1,817	$ 1,651
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization expense	[1],[2]	365	346
Share-based compensation expense		43	46
Asset write-offs and asset impairments		27	7
Gain on sale of business, excluding transaction costs		(118)	0
Provision for losses on inventory		82	49
Deferred taxes		(40)	(110)
Employee benefit plan contribution from Pfizer Inc.		0	2
Other non-cash adjustments		(6)	3
Other changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(54)	(120)
Inventories		(497)	(438)
Other assets		(119)	(20)
Accounts payable		(9)	(59)
Other liabilities		(27)	(227)
Other tax accounts, net		(8)	41
Net cash provided by operating activities		1,456	1,171
Investing Activities
Capital expenditures		(534)	(415)
Acquisitions		(155)	(96)
Purchase of investments		(3)	(8)
Proceeds on derivative instrument activity, net		23	74
Net cash proceeds		96	0
Net proceeds from sale of assets		4	0
Payments for (Proceeds from) Other Investing Activities		2	0
Net cash used in investing activities		(567)	(445)
Financing Activities
Increase in short-term borrowings, net		0	3
Principal payments on long-term debt		(1,350)	0
Payment of consideration related to previous acquisitions		3	0
Share-based compensation-related proceeds, net of taxes paid on withholding shares		18	(38)
Purchases of treasury stock		(857)	(1,189)
Cash dividends paid		(520)	(460)
Net cash used in financing activities		(2,712)	(1,684)
Effect of exchange-rate changes on cash and cash equivalents		(4)	(20)
Net decrease in cash and cash equivalents		(1,827)	(978)
Cash and cash equivalents at beginning of period		3,581	3,485
Cash and cash equivalents at end of period		1,754	2,507
Cash paid during the period for:
Income taxes		586	471
Interest, net of capitalized interest		225	209
Amounts included in the measurement of lease liabilities		42	37
Non-cash transactions:
Capital expenditures		4	5
Excise tax accrued on net share repurchases, not paid		7	0
Lease obligations obtained in exchange for right-of-use assets		$ 74	$ 46
[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	9 Months Ended
	Sep. 30, 2023
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 and services, biodevices, genetic tests and precision animal health technology. We organize and operate our business in two geographic regions: the United States (U.S.) and International.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2023
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 nine months ended August 31, 2023 and August 31, 2022. 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.

Accounting Standards

Accounting Standards	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Accounting Standards	3. Accounting Standards Recently Adopted Accounting Standards

Revenue

Revenue	9 Months Ended
	Sep. 30, 2023
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 or e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top-selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network. Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to all different brands of a particular product, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock within each of our major product categories. Our major product categories are: • parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms; • vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response; • dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis; • other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products; • anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa; • animal health diagnostics: testing and analysis of blood, urine and other animal samples and related products and services, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services and blood glucose monitors; and • medicated feed additives: products added to animal feed that provide medicines to livestock. Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals, as well as products and services in biodevices, genetic tests and precision animal health. Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics. Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety and reliability of supply. The following tables present our revenue disaggregated by geographic area, species and major product category: Revenue by geographic area Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 United States $ 1,174 $ 1,090 $ 3,344 $ 3,201 Australia 84 80 248 225 Brazil 101 70 276 233 Canada 63 56 183 172 Chile 31 31 109 106 China 69 92 255 291 France 34 28 102 91 Germany 50 43 148 132 Italy 26 24 87 86 Japan 34 37 120 137 Mexico 42 33 119 101 Spain 30 29 94 97 United Kingdom 78 59 209 174 Other developed markets 127 121 374 354 Other emerging markets 187 186 605 581 2,130 1,979 6,273 5,981 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040 Revenue by major species Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 U.S. Companion animal $ 908 $ 819 $ 2,588 $ 2,488 Livestock 266 271 756 713 1,174 1,090 3,344 3,201 International Companion animal 506 452 1,540 1,412 Livestock 450 437 1,389 1,368 956 889 2,929 2,780 Total Companion animal 1,414 1,271 4,128 3,900 Livestock 716 708 2,145 2,081 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040 Revenue by species Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Companion Animal: Dogs and Cats $ 1,354 $ 1,213 $ 3,931 $ 3,715 Horses 60 58 197 185 1,414 1,271 4,128 3,900 Livestock: Cattle 374 371 1,102 1,063 Swine 129 129 404 427 Poultry 127 116 397 361 Fish 57 60 158 151 Sheep and other 29 32 84 79 716 708 2,145 2,081 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040 Revenue by major product category Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Parasiticides $ 465 $ 422 $ 1,465 $ 1,417 Vaccines 449 449 1,308 1,300 Dermatology 397 348 1,048 978 Other pharmaceuticals 313 252 922 771 Anti-infectives 264 284 796 802 Animal health diagnostics 95 83 284 268 Medicated feed additives 86 78 257 261 Other non-pharmaceuticals 61 63 193 184 2,130 1,979 6,273 5,981 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040 B. Revenue from Contracts with Customers Contract liabilities reflected within Other current liabilities as of December 31, 2022 and 2021, and subsequently recognized as revenue during the first nine months of 2023 and 2022 were $4 million and $3 million, respectively. Contract liabilities as of September 30, 2023 and December 31, 2022 were $13 million and $14 million, respectively.

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2023
Business Combinations [Abstract]
Acquisitions and Divestitures	5. Acquisitions and Divestitures A. Acquisitions During the third quarter of 2023, we acquired 100% of the issued share capital of PetMedix Ltd. (PetMedix), a privately held research and development stage animal health biopharmaceutical company based in the United Kingdom, which develops antibody-based therapeutics for companion animals. The purchase price included upfront cash consideration of $111 million, excluding $19 million of cash acquired, $5 million in cash withheld for customary post-closing adjustments, and contingent consideration up to $100 million based on the achievement of certain milestones. There are additional contingent payments to be made to the seller upon receipt of payments from a third party related to a preexisting collaboration arrangement between PetMedix and the third party. The initial fair value assessment of the contingent consideration and additional contingent payments is not material and the transaction did not have a material impact on our condensed consolidated financial statements. During the third quarter of 2023, we also completed the acquisition of adivo GmbH (adivo), a privately held research and development stage animal health biopharmaceutical company based in Germany. The transaction did not have a material impact on our condensed consolidated financial statements. In 2022, we completed the acquisition of Basepaws, a privately held petcare genetics company based in the U.S., which provides pet owners with genetic tests, analytics and early health risk assessments that can help manage the health, wellness and quality of care for their pets. We also completed the acquisition of NewMetrica, a privately held company based in Scotland, that provides scientifically-developed instruments to measure quality of life in companion animals. These transactions did not have a material impact on our condensed consolidated financial statements. During 2021, we entered into an agreement to acquire Jurox, a privately held animal health company based in Australia, which develops, manufactures and markets a wide range of veterinary medicines for treating companion animals and livestock. On September 30, 2022, after satisfying all customary closing conditions, including clearance from the Australian Competition and Consumer Commission, we completed the acquisition of Jurox. We acquired 100% of the outstanding shares for an aggregate cash purchase price of $226 million, which was adjusted to $240 million for cash and working capital and other adjustments as of the closing date. Net cash consideration transferred to the seller was $215 million during 2022 and $5 million for the nine months ended September 30, 2023. The transaction was accounted for as a business combination, with the assets acquired and liabilities assumed measured at their respective acquisition date fair values. The valuation was finalized during the third quarter of 2023. The table below presents the final fair values allocated to the assets and liabilities of Jurox as of the acquisition date: (MILLIONS OF DOLLARS) Amounts Cash and cash equivalents $ 20 Accounts receivable 8 Inventories (a) 21 Other current assets 1 Property, plant and equipment (b) 25 Identifiable intangible assets (c) 135 Other noncurrent assets 7 Accounts payable 2 Other current liabilities 12 Other noncurrent liabilities 1 Total net assets acquired 202 Goodwill (d) 38 Total consideration $ 240 (a) Acquired inventory is comprised of finished goods, work in process and raw materials. The fair value of finished goods was determined based on net realizable value adjusted for the costs of the selling effort, a reasonable profit allowance for the selling effort, and estimated holding costs. The fair value of work in process was determined based on net realizable value adjusted for costs to complete the manufacturing process, costs of the selling effort, a reasonable profit allowance for the remaining manufacturing and selling effort, and an estimate of holding costs. The fair value of raw materials was determined to approximate book value. (b) Property, plant and equipment is comprised of buildings, machinery and equipment, land, construction in progress and furniture and fixtures. The fair value was primarily determined using a reproduction/replacement cost approach which measures the value of an asset by estimating the cost to acquire or construct comparable assets adjusted for age and condition of the asset. (c) Identifiable intangible assets consist of developed technology rights. The fair value of identifiable intangible assets was determined using the income approach, which includes a forecast of expected future cash flows. For additional information regarding identifiable intangible assets, see Note 11. Goodwill and Other Intangible Assets . (d) Goodwill represents the excess of consideration transferred over the fair values of the assets acquired and liabilities assumed. It is allocated to our International segment and is primarily attributable to cost and revenue synergies including market share capture, elimination of cost redundancies and gain of cost efficiencies, and intangible assets such as assembled workforce which are not separately recognizable. The primary strategic purpose of the acquisition was to enhance the company ’ s existing product portfolio. B. Divestitures During the third quarter of 2023, we completed the divestiture of Performance Livestock Analytics, part of our precision animal health business. The transaction did not have a material impact on our condensed consolidated financial statements. During the nine months ended September 30, 2023, we received net cash proceeds of $93 million ($99 million sales proceeds, net of cash sold of $6 million) for the sale of a majority interest in our pet insurance business, Pumpkin Insurance Services. For the nine months ended September 30, 2023, we recorded a net pre-tax gain of $101 million within Other (income)/deductions—net , which includes $24 million related to the remeasurement of our retained noncontrolling investment to fair value.

Restructuring Charges and Other

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives	9 Months Ended
	Sep. 30, 2023
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 In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges associated with site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems. In connection with our acquisition activity, we typically incur costs and charges associated with executing the transactions, integrating the acquired operations, which may include expenditures for consulting and the integration of systems and processes, product transfers and restructuring the consolidated company, which may include charges related to employees, assets and activities that will not continue in the consolidated company. All operating functions can be impacted by these actions, including sales and marketing, manufacturing and R&D, as well as functions such as business technology, shared services and corporate operations. The components of costs incurred in connection with restructuring initiatives, acquisitions and cost-reduction/productivity initiatives are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ 1 $ 1 $ 3 $ 4 Transaction costs (b) 2 — 4 — Restructuring charges (c) : Employee termination costs 8 2 33 2 Asset impairment charges 1 2 1 2 Exit costs 4 1 4 1 Total Restructuring charges and certain acquisition-related costs $ 16 $ 6 $ 45 $ 9 (a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) Transaction costs represent external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. (c) The restructuring charges for the three and nine months ended September 30, 2023 primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives. The restructuring charges for the three and nine months ended September 30, 2022, represent employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, as well as asset impairment charges primarily related to the consolidation of manufacturing sites in China. (MILLIONS OF DOLLARS) Accrual Balance, December 31, 2022 (a) $ 15 Provision 38 Non-cash activity (1) Utilization and other (b) (18) Balance, September 30, 2023 (a) $ 34 (a) At September 30, 2023 and December 31, 2022, included in Accrued expenses ($25 million and $5 million, respectively) and Other noncurrent liabilities ($9 million and $10 million, respectively).

Other (Income)_Deductions - Net

Other (Income)/Deductions - Net	9 Months Ended
	Sep. 30, 2023
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 Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Royalty-related income (a) $ (1) $ (1) $ (36) $ (3) Interest income (23) (13) (79) (20) Identifiable intangible asset impairment charges (b) 6 1 17 1 Other asset impairment charges 1 — 1 — Net gain on sale of business (c) — — (101) — Foreign currency loss (d) 19 11 41 36 Other, net 4 (1) 6 (8) Other (income)/deductions—net $ 6 $ (3) $ (151) $ 6 (a) For the nine months ended September 30, 2023, predominantly associated with a settlement for underpayment of royalties in prior periods. (b) For the three months ended September 30, 2023 , primarily re presents certain asset impairment charges related to our diagnostics business. For the nine months ended September 30, 2023, primarily re presents certain asset impairment charges related to our precision animal health and diagnostics businesses. (c) Primarily relates to the gain on sale of a majority interest in our pet insurance business. For additional information, see Note 5. Acquisitions and Divestitures.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes A. Taxes on Income Our effective tax rate was 16.9% and 20.8% for the three months ended September 30, 2023 and 2022, respectively. The lower effective tax rate for the three months ended September 30, 2023, compared with the three months ended September 30, 2022, was primarily attributable to a benefit from the tax loss on the divestiture of Performance Livestock Analytics, a more favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs) and a higher benefit in the U.S. related to foreign-derived income, partially offset by lower net discrete tax benefits. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items. Our effective tax rate was 20.5% and 20.0% for the nine months ended September 30, 2023 and 2022, respectively. The higher effective tax rate for the nine months ended September 30, 2023, compared with the nine months ended September 30, 2022, was primarily attributable to a higher net discrete tax expense mainly related to changes to prior years’ tax positions and a less favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs), partially offset by a higher benefit in the U.S. related to foreign-derived intangible income and a benefit from the tax loss on the divestiture of Performance Livestock Analytics. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items. In 2022, the company implemented an initiative to maximize its cash position in the U.S. This initiative resulted in a tax benefit in the U.S. in connection with a prepayment from a related foreign entity in Belgium which qualifies as foreign-derived intangible income; however, this income tax benefit was deferred to 2023 and 2024. A portion of this benefit was recognized during the three and nine months ended September 30, 2023. B. Deferred Taxes As of September 30, 2023, the total net deferred income tax asset of $30 million is included in Noncurrent deferred tax assets ($190 million) and Noncurrent deferred tax liabilities ($160 million). As of December 31, 2022, the total net deferred income tax asset of $31 million is included in Noncurrent deferred tax assets ($173 million) and Noncurrent deferred tax liabilities ($142 million). C. Tax Contingencies As of September 30, 2023, the net tax liabilities associated with uncertain tax positions of $202 million (exclusive of interest and penalties related to uncertain tax positions of $27 million) are included in Noncurrent deferred tax assets and Other noncurrent assets ($2 million) and Other taxes payable ($200 million). As of December 31, 2022, the net tax liabilities associated with uncertain tax positions of $194 million (exclusive of interest and penalties related to uncertain tax positions of $19 million) are included in Noncurrent deferred tax assets and Other noncurrent assets ($2 million) and Other taxes payable ($192 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	9 Months Ended
	Sep. 30, 2023
Financial Instruments [Abstract]
Financial Instruments	9. Financial Instruments A. Debt Credit Facilities In December 2022, 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), which expires in December 2027. The credit facility replaced the company’s existing revolving credit facility dated as of December 2016. 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. In addition, the credit facility contains other customary covenants. We were in compliance with all financial covenants as of September 30, 2023 and December 31, 2022. There were no amounts drawn under the credit facility as of September 30, 2023 or December 31, 2022. 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 September 30, 2023, we had access to $50 million of lines of credit which expire at various times and are generally renewed annually. There was $2 million of borrowings outstanding related to these facilities as of September 30, 2023 and December 31, 2022. Commercial Paper Program In February 2013, we entered into a commercial paper program with a capacity of up to $1.0 billion. As of September 30, 2023 and December 31, 2022, there was no commercial paper outstanding under this program. Senior Notes and Other Long-Term Debt On November 8, 2022, we issued $1.35 billion aggregate principal amount of our senior notes (2022 senior notes), with an original issue discount of $2 million. These notes are comprised of $600 million aggregate principal amount of 5.400% senior notes due 2025 and $750 million aggregate principal amount of 5.600% senior notes due 2032. On February 1, 2023, the net proceeds were used to redeem in full, upon maturity, the $1.35 billion aggregate principal amount of our 3.250% 2013 senior notes due 2023. Our senior notes are governed by an indenture and supplemental indentures (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 senior notes may be declared immediately due and payable. Pursuant to the indenture, we are able to redeem the senior notes of 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. Upon the occurrence of a change of control of us and a downgrade of the 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 senior notes at a price equal to 101% of the aggregate principal amount of the 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: September 30, December 31, (MILLIONS OF DOLLARS) 2023 2022 3.250% 2013 senior notes due 2023 $ — $ 1,350 4.500% 2015 senior notes due 2025 750 750 5.400% 2022 senior notes due 2025 600 600 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 5.600% 2022 senior notes due 2032 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 6,650 8,000 Unamortized debt discount / debt issuance costs (62) (66) Less current portion of long-term debt — 1,350 Cumulative fair value adjustment for interest rate swap contracts (36) (32) Long-term debt, net of discount and issuance costs $ 6,552 $ 6,552 The fair value of our long-term debt was $5,893 million and $6,108 million as of September 30, 2023 and December 31, 2022, 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 September 30, 2023, matures in the following years: After (MILLIONS OF DOLLARS) 2023 2024 2025 2026 2027 2027 Total Maturities $ — $ — $ 1,350 $ — $ 750 $ 4,550 $ 6,650 Interest Expense Interest expense, net of capitalized interest, was $59 million and $180 million for the three and nine months ended September 30, 2023, respectively, and $53 million and $159 million for the three and nine months ended September 30, 2022, respectively. Capitalized interest expense was $7 million and $19 million for the three and nine months ended September 30, 2023, respectively, and $5 million and $16 million for the three and nine months ended September 30, 2022, 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 Sheets. The derivative financial instruments primarily offset exposures in the Australian dollar, British pound, Canadian dollar, Chinese yuan, euro 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 currency forward-exchange contracts not designated as hedging instruments, we recognize the gains and losses that are used to offset the same foreign currency assets or liabilities immediately into earnings along with the earnings impact of the items they generally offset. These contracts essentially take the opposite currency position of that reflected in the month-end balance sheet to counterbalance the effect of any currency movement. The vast majority of the foreign currency forward-exchange contracts mature within 60 days and all mature within three years. • For foreign exchange derivative instruments that are designated as hedging instruments 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. These instruments include cross-currency interest rate swaps and foreign currency forward-exchange contracts. 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 Statements of Cash Flows . These contracts have varying maturities of up to two 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. • During the period from 2019 to 2022, we entered into forward-starting interest rate swaps with an aggregate notional value of $650 million. We designated these swaps as cash flow hedges against interest rate exposure related principally to the issuance of fixed-rate debt to refinance our 3.250% 2013 senior notes due 2023. Upon issuance of our 2022 senior notes, we terminated these contracts and received $114 million in cash from the counterparties for settlement, included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The settlement amount, which represented the fair value of the contracts at the time of termination, was recorded in Accumulated other comprehensive loss , and will be amortized into income (offset to Interest expense, net of capitalized interest ) over the life of the 5.600% 2022 senior notes due 2032. • As of September 30, 2023, we had outstanding forward-starting interest rate swaps, 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% 2015 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 Secured Overnight Financing Rate (SOFR). These derivative instruments effectively convert a portion of the company’s long-term debt from fixed-rate to floating-rate debt based on the daily SOFR rate plus a spread. Gains or losses on the fixed-to-floating interest rate swaps due to changes in SOFR 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 September 30, 2023, we had outstanding fixed-to-floating interest rate swaps that correspond to a portion of the 3.900% 2018 senior notes due 2028 and the 2.000% senior notes due 2030. The amounts recorded during the three and nine months ended September 30, 2023 for changes in the fair value of these hedges are not material to our condensed consolidated financial statements. During the first quarter of 2023, we executed amendments to certain of our interest rate swap contracts, which changed the floating rate index from LIBOR to SOFR. These amendments did not have a material impact on our condensed consolidated financial statements. Outstanding Positions The aggregate notional amount of derivative instruments are as follows: Notional September 30, December 31, (MILLIONS) 2023 2022 Derivatives not Designated as Hedging Instruments Foreign currency forward-exchange contracts $ 1,984 $ 1,753 Derivatives Designated as Hedging Instruments Foreign exchange derivative instruments (in foreign currency): Euro 650 650 Danish krone 600 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 100 $ 50 Fixed-to-floating interest rate swap contracts $ 250 $ 250 Fair Value of Derivative Instruments The classification and fair values of derivative instruments are as follows: Fair Value of Derivatives September 30, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2023 2022 Derivatives Not Designated as Hedging Instruments Foreign currency forward-exchange contracts Other current assets $ 12 $ 22 Foreign currency forward-exchange contracts Other current liabilities (11) (21) Total derivatives not designated as hedging instruments $ 1 $ 1 Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 17 $ 10 Foreign exchange derivative instruments Other current assets 15 21 Foreign exchange derivative instruments Other noncurrent assets 19 19 Foreign exchange derivative instruments Other current liabilities (5) (9) Foreign exchange derivative instruments Other noncurrent liabilities — (4) Fixed-to-floating interest rate swap contracts Other noncurrent liabilities (36) (32) Total derivatives designated as hedging instruments 10 5 Total derivatives $ 11 $ 6 The company’s derivative transactions are subject to master netting agreements that mitigate credit risk by permitting net settlement of transactions with the same counterparty. The company also has collateral security agreements with certain of its counterparties. Under these collateral security agreements either party is required to post cash collateral when the net fair value of derivative instruments covered by the collateral agreement exceeds contractually established thresholds. At September 30, 2023, there was $25 million of collateral received and $32 million of collateral posted related to derivative instruments recorded in Other current liabilities and Other current assets , respectively. At December 31, 2022, there was $8 million of collateral received and $21 million of collateral posted related to derivative instruments recorded in Other current liabilities and Other current assets , respectively. 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 gains/(losses) on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Foreign currency forward-exchange contracts $ 16 $ (23) $ (20) $ (49) 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 gains on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive loss , are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Forward-starting interest rate swap contracts $ 5 $ 30 $ 5 $ 77 Foreign exchange derivative instruments $ 18 $ 39 $ 5 $ 84 Gains on interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Foreign exchange derivative instruments $ 4 $ 4 $ 14 $ 11 The net amount of deferred gains related to derivative instruments designated as cash flow hedges that is expected to be reclassified from Accumulated other comprehensive loss into earnings over the next 12 months is not material.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventories	10. Inventories The components of inventory are as follows: September 30, December 31, (MILLIONS OF DOLLARS) 2023 2022 Finished goods $ 1,185 $ 1,090 Work-in-process 1,062 825 Raw materials and supplies 497 430 Inventories $ 2,744 $ 2,345

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2023
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, 2022 $ 1,485 $ 1,261 $ 2,746 Additions 24 14 38 Transfers/Adjustments (a) 27 (34) (7) Other (b) (2) (13) (15) Balance, September 30, 2023 $ 1,534 $ 1,228 $ 2,762 (a) Primarily related to asset transfers from international markets to the U.S. (b) Includes adjustments for foreign currency translation and the sale of a majority interest in our pet insurance business within our U.S. segment. The gross goodwill balance was $3,298 million and $3,282 million as of September 30, 2023 and December 31, 2022, respectively. Accumulated goodwill impairment losses (generated entirely in fiscal 2002) were $536 million as of September 30, 2023 and December 31, 2022. B. Other Intangible Assets The components of identifiable intangible assets are as follows: As of September 30, 2023 As of December 31, 2022 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 (a) $ 1,994 $ (1,065) $ 929 $ 1,918 $ (975) $ 943 Brands and tradenames 391 (245) 146 395 (237) 158 Other 333 (250) 83 337 (233) 104 Total finite-lived intangible assets 2,718 (1,560) 1,158 2,650 (1,445) 1,205 Indefinite-lived intangible assets: Brands and tradenames 91 — 91 91 — 91 In-process research and development (a)(b) 142 — 142 77 — 77 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 240 — 240 175 — 175 Identifiable intangible assets $ 2,958 $ (1,560) $ 1,398 $ 2,825 $ (1,445) $ 1,380 (a) During the nine months ended September 30, 2023, certain intangible assets related to the acquisition of an Irish biologic therapeutics company, acquired in 2017, were placed into service. (b) As of September 30, 2023, primarily includes intangible assets related to the acquisitions of PetMedix and adivo in the third quarter of 2023. 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 $46 million and $141 million for the three and nine months ended September 30, 2023, respectively, and $48 million and $147 million for the three and nine months ended September 30, 2022, respectively.

Share-Based Payments

Share-Based Payments	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payments	12. Share-based Payments The Zoetis 2013 Equity and Incentive Plan (Equity Plan) provides long-term incentives to our employees and non-employee directors. The principal types of share-based awards available under the Equity Plan may include, but are not limited to, stock options, restricted stock and restricted stock units (RSUs), deferred stock units (DSUs), performance-vesting restricted stock units (PSUs) and other equity-based or cash-based awards. The components of share-based compensation expense are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Stock options / stock appreciation rights $ 3 $ 2 $ 6 $ 7 RSUs / DSUs 10 9 27 26 PSUs 4 4 10 13 Share-based compensation expense—total (a) $ 17 $ 15 $ 43 $ 46 (a) For the three and nine months ended September 30, 2023 and 2022, we capitalized less than $1 million of share-based compensation expense to inventory. During the nine months ended September 30, 2023, the company granted 271,150 stock options with a weighted-average exercise price of $162.12 per stock option and a weighted-average fair value of $43.56 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 3.84%; expected dividend yield of 0.92%; expected stock price volatility of 28.63%; and expected term of 4.2 years. In general, stock options granted prior to 2023 vest after three years of continuous service, while stock options granted in 2023 are subject to graded vesting over three years. 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 nine months ended September 30, 2023, the company granted 270,960 RSUs, with a weighted-average grant date fair value of $162.53 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 granted prior to 2023 vest after three years of continuous service from the grant date while RSUs granted in 2023 are subject to graded vesting over three years. 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 nine months ended September 30, 2023, the company granted 99,626 PSUs with a weighted-average grant date fair value of $238.24 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 31.8% and 40.9%, 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	9 Months Ended
	Sep. 30, 2023
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 2021, our Board of Directors authorized a $3.5 billion share repurchase program. As of September 30, 2023, there was $1.7 billion remaining under this authorization. Purchases of Zoetis shares may be made at the discretion of management, depending on market conditions and business needs. Accumulated other comprehensive loss Changes, net of tax, in accumulated other comprehensive loss, were as follows: Currency Translation Adjustments Other Currency Benefit Plans Accumulated Other Cash Flow Net Investment Translation Actuarial Comprehensive (MILLIONS OF DOLLARS) Hedges Hedges Adjustments (Losses)/Gains Loss Balance, December 31, 2022 $ 90 $ 41 $ (944) $ (4) $ (817) Other comprehensive income/(loss), net of tax — 5 (6) 4 3 Balance, September 30, 2023 $ 90 $ 46 $ (950) $ — $ (814) Balance, December 31, 2021 $ 4 $ 5 $ (756) $ (17) $ (764) Other comprehensive income/(loss), net of tax 78 84 (208) 1 (45) Balance, September 30, 2022 $ 82 $ 89 $ (964) $ (16) $ (809)

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2023
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 Nine Months Ended (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) September 30, September 30, 2023 2022 2023 2022 Numerator Net income before allocation to noncontrolling interests $ 596 $ 528 $ 1,817 $ 1,651 Less: Net loss attributable to noncontrolling interests — (1) (2) (2) Net income attributable to Zoetis Inc. $ 596 $ 529 $ 1,819 $ 1,653 Denominator Weighted-average common shares outstanding 460.3 467.8 461.9 470.0 Common stock equivalents: stock options, RSUs, PSUs and DSUs 1.1 1.3 1.1 1.6 Weighted-average common and potential dilutive shares outstanding 461.4 469.1 463.0 471.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.29 $ 1.13 $ 3.94 $ 3.52 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.29 $ 1.13 $ 3.93 $ 3.51 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 not material for the three and nine months ended September 30, 2023 and 2022.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
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. Due to the ongoing issues presented by the coronavirus (COVID-19) pandemic, the parties have been unable to secure a start date for the Phase II testing and have no timeline at this point when testing will begin. Belgium Excess Profit Tax Regime On February 14, 2019, the General Court of the European Union (General Court) annulled the January 11, 2016 decision of the European Commission (EC) that selective tax advantages granted by Belgium under its “excess profit” tax scheme constitute illegal state aid. As a result of the 2016 decision, the company recorded a net tax charge of approximately $35 million in the first half of 2016. On May 8, 2019, the EC filed an appeal to the decision of the General Court. On September 16, 2019, the EC opened separate in-depth investigations to assess whether Belgium excess profit rulings granted to 39 multinational companies, including Zoetis, constituted state aid for those companies. On September 16, 2021, the European Court of Justice upheld the EC’s decision that the Belgium excess profit ruling system is considered an aid scheme and referred the case back to the General Court to rule on open questions. On September 20, 2023, the General Court confirmed the decision of the EC that the Belgium excess profit tax scheme constitutes illegal state aid. We are in the process of preparing an appeal of the General Court’s decision. The company has not reflected any potential benefits in its condensed consolidated financial statements as of September 30, 2023 as a result of the 2019 annulment. We will continue to monitor the developments of the appeal and its ultimate resolution. B. Guarantees and Indemnifications

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2023
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, dermatology, other pharmaceutical products, anti-infectives, animal health diagnostics and medicated feed additives, for both companion animal and livestock 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. 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 enabling functions such as information technology, facilities, legal, finance, human resources, business development, certain diagnostic costs and communications, among others. These costs also include certain compensation costs, certain procurement 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) certain 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 September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 U.S. Revenue $ 1,174 $ 1,090 Cost of sales 228 204 Gross profit 946 886 Gross margin 80.6 % 81.3 % Operating expenses 202 206 Other (income)/deductions-net — 1 U.S. Earnings 744 679 $ 19 $ 12 International Revenue (b) 956 889 Cost of sales 306 256 Gross profit 650 633 Gross margin 68.0 % 71.2 % Operating expenses 156 150 Other (income)/deductions-net 1 (3) International Earnings 493 486 24 21 Total operating segments 1,237 1,165 43 33 Other business activities (124) (106) 9 7 Reconciling Items: Corporate (258) (245) 33 33 Purchase accounting adjustments (39) (40) 39 40 Acquisition-related costs (3) (1) — — Certain significant items (c) (23) (6) — — Other unallocated (73) (100) — 2 Total Earnings (d) $ 717 $ 667 $ 124 $ 115 (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 $206 million and $183 million for the three months ended September 30, 2023 and 2022, respectively. (c) For the three months ended September 30, 2023, primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, as well as certain asset impairment charges related to our diagnostics and precision animal health businesses. For the three months ended September 30, 2022, primarily represents employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, as well as asset impairment charges related to the consolidation of manufacturing sites in China. (d) Defined as income before provision for taxes on income. Earnings Depreciation and Amortization (a) Nine Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 U.S. Revenue $ 3,344 $ 3,201 Cost of sales 645 587 Gross profit 2,699 2,614 Gross margin 80.7 % 81.7 % Operating expenses 602 578 Other (income)/deductions-net — (6) U.S. Earnings 2,097 2,042 $ 58 $ 40 International Revenue (b) 2,929 2,780 Cost of sales 912 809 Gross profit 2,017 1,971 Gross margin 68.9 % 70.9 % Operating expenses 473 456 Other (income)/deductions-net 1 (5) International Earnings 1,543 1,520 67 62 Total operating segments 3,640 3,562 125 102 Other business activities (354) (315) 24 21 Reconciling Items: Corporate (722) (771) 95 99 Purchase accounting adjustments (124) (120) 118 120 Acquisition-related costs (8) (4) — — Certain significant items (c) 45 (10) — — Other unallocated (191) (278) 3 4 Total Earnings (d) $ 2,286 $ 2,064 $ 365 $ 346 (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 $627 million and $590 million for the nine months ended September 30, 2023 and 2022, respectively. (c) For the nine months ended September 30, 2023, primarily consisted of a gain on the sale of a majority interest in our pet insurance business, partially offset by employee termination costs related to organizational structure refinements and certain asset impairment charges related to our precision animal health and diagnostics businesses. For the nine months ended September 30, 2022, primarily represents inventory and asset impairment charges related to the consolidation of manufacturing sites in China as well as employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 596	$ 529	$ 1,819	$ 1,653

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Standards (Policies)

Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2023
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 nine months ended August 31, 2023 and August 31, 2022.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards	Recently Adopted Accounting Standards
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 September 30, 2023, recorded amounts for the estimated fair value of these indemnifications were not material.
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, dermatology, other pharmaceutical products, anti-infectives, animal health diagnostics and medicated feed additives, for both companion animal and livestock 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. 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 enabling functions such as information technology, facilities, legal, finance, human resources, business development, certain diagnostic costs and communications, among others. These costs also include certain compensation costs, certain procurement 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) certain 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)	9 Months Ended
	Sep. 30, 2023
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 Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 United States $ 1,174 $ 1,090 $ 3,344 $ 3,201 Australia 84 80 248 225 Brazil 101 70 276 233 Canada 63 56 183 172 Chile 31 31 109 106 China 69 92 255 291 France 34 28 102 91 Germany 50 43 148 132 Italy 26 24 87 86 Japan 34 37 120 137 Mexico 42 33 119 101 Spain 30 29 94 97 United Kingdom 78 59 209 174 Other developed markets 127 121 374 354 Other emerging markets 187 186 605 581 2,130 1,979 6,273 5,981 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040
Revenue from External Customers by Major Species	Revenue by major species Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 U.S. Companion animal $ 908 $ 819 $ 2,588 $ 2,488 Livestock 266 271 756 713 1,174 1,090 3,344 3,201 International Companion animal 506 452 1,540 1,412 Livestock 450 437 1,389 1,368 956 889 2,929 2,780 Total Companion animal 1,414 1,271 4,128 3,900 Livestock 716 708 2,145 2,081 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040
Revenue from External Customers by Species	Revenue by species Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Companion Animal: Dogs and Cats $ 1,354 $ 1,213 $ 3,931 $ 3,715 Horses 60 58 197 185 1,414 1,271 4,128 3,900 Livestock: Cattle 374 371 1,102 1,063 Swine 129 129 404 427 Poultry 127 116 397 361 Fish 57 60 158 151 Sheep and other 29 32 84 79 716 708 2,145 2,081 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040
Schedule of Significant Product Revenues	Revenue by major product category Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Parasiticides $ 465 $ 422 $ 1,465 $ 1,417 Vaccines 449 449 1,308 1,300 Dermatology 397 348 1,048 978 Other pharmaceuticals 313 252 922 771 Anti-infectives 264 284 796 802 Animal health diagnostics 95 83 284 268 Medicated feed additives 86 78 257 261 Other non-pharmaceuticals 61 63 193 184 2,130 1,979 6,273 5,981 Contract manufacturing & human health 21 23 58 59 Total Revenue $ 2,151 $ 2,002 $ 6,331 $ 6,040

Business Combinations and Asset

Business Combinations and Asset Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The table below presents the final fair values allocated to the assets and liabilities of Jurox as of the acquisition date: (MILLIONS OF DOLLARS) Amounts Cash and cash equivalents $ 20 Accounts receivable 8 Inventories (a) 21 Other current assets 1 Property, plant and equipment (b) 25 Identifiable intangible assets (c) 135 Other noncurrent assets 7 Accounts payable 2 Other current liabilities 12 Other noncurrent liabilities 1 Total net assets acquired 202 Goodwill (d) 38 Total consideration $ 240 (a) Acquired inventory is comprised of finished goods, work in process and raw materials. The fair value of finished goods was determined based on net realizable value adjusted for the costs of the selling effort, a reasonable profit allowance for the selling effort, and estimated holding costs. The fair value of work in process was determined based on net realizable value adjusted for costs to complete the manufacturing process, costs of the selling effort, a reasonable profit allowance for the remaining manufacturing and selling effort, and an estimate of holding costs. The fair value of raw materials was determined to approximate book value. (b) Property, plant and equipment is comprised of buildings, machinery and equipment, land, construction in progress and furniture and fixtures. The fair value was primarily determined using a reproduction/replacement cost approach which measures the value of an asset by estimating the cost to acquire or construct comparable assets adjusted for age and condition of the asset. (c) Identifiable intangible assets consist of developed technology rights. The fair value of identifiable intangible assets was determined using the income approach, which includes a forecast of expected future cash flows. For additional information regarding identifiable intangible assets, see Note 11. Goodwill and Other Intangible Assets . (d) Goodwill represents the excess of consideration transferred over the fair values of the assets acquired and liabilities assumed. It is allocated to our International segment and is primarily attributable to cost and revenue synergies including market share capture, elimination of cost redundancies and gain of cost efficiencies, and intangible assets such as assembled workforce which are not separately recognizable. The primary strategic purpose of the acquisition was to enhance the company ’

Restructuring Charges and Oth_2

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)	9 Months Ended
	Sep. 30, 2023
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 Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ 1 $ 1 $ 3 $ 4 Transaction costs (b) 2 — 4 — Restructuring charges (c) : Employee termination costs 8 2 33 2 Asset impairment charges 1 2 1 2 Exit costs 4 1 4 1 Total Restructuring charges and certain acquisition-related costs $ 16 $ 6 $ 45 $ 9 (a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) Transaction costs represent external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. (c) The restructuring charges for the three and nine months ended September 30, 2023 primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives. The restructuring charges for the three and nine months ended September 30, 2022, represent employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets, as well as asset impairment charges primarily related to the consolidation of manufacturing sites in China. (MILLIONS OF DOLLARS) Accrual Balance, December 31, 2022 (a) $ 15 Provision 38 Non-cash activity (1) Utilization and other (b) (18) Balance, September 30, 2023 (a) $ 34 (a) At September 30, 2023 and December 31, 2022, included in Accrued expenses ($25 million and $5 million, respectively) and Other noncurrent liabilities ($9 million and $10 million, respectively).

Other (Income)_Deductions - N_2

Other (Income)/Deductions - Net (Tables)	9 Months Ended
	Sep. 30, 2023
Other Income and Expenses [Abstract]
Components of Other (Income)/Deductions—Net	The components of Other (income)/deductions—net are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Royalty-related income (a) $ (1) $ (1) $ (36) $ (3) Interest income (23) (13) (79) (20) Identifiable intangible asset impairment charges (b) 6 1 17 1 Other asset impairment charges 1 — 1 — Net gain on sale of business (c) — — (101) — Foreign currency loss (d) 19 11 41 36 Other, net 4 (1) 6 (8) Other (income)/deductions—net $ 6 $ (3) $ (151) $ 6 (a) For the nine months ended September 30, 2023, predominantly associated with a settlement for underpayment of royalties in prior periods. (b) For the three months ended September 30, 2023 , primarily re presents certain asset impairment charges related to our diagnostics business. For the nine months ended September 30, 2023, primarily re presents certain asset impairment charges related to our precision animal health and diagnostics businesses. (c) Primarily relates to the gain on sale of a majority interest in our pet insurance business. For additional information, see Note 5. Acquisitions and Divestitures.

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Financial Instruments [Abstract]
Schedule of Long-term Debt Instruments	The components of our long-term debt are as follows: September 30, December 31, (MILLIONS OF DOLLARS) 2023 2022 3.250% 2013 senior notes due 2023 $ — $ 1,350 4.500% 2015 senior notes due 2025 750 750 5.400% 2022 senior notes due 2025 600 600 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 5.600% 2022 senior notes due 2032 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 6,650 8,000 Unamortized debt discount / debt issuance costs (62) (66) Less current portion of long-term debt — 1,350 Cumulative fair value adjustment for interest rate swap contracts (36) (32) Long-term debt, net of discount and issuance costs $ 6,552 $ 6,552
Schedule of Maturities of Long-term Debt	The principal amount of long-term debt outstanding, as of September 30, 2023, matures in the following years: After (MILLIONS OF DOLLARS) 2023 2024 2025 2026 2027 2027 Total Maturities $ — $ — $ 1,350 $ — $ 750 $ 4,550 $ 6,650
Schedule of Derivative Instruments	The aggregate notional amount of derivative instruments are as follows: Notional September 30, December 31, (MILLIONS) 2023 2022 Derivatives not Designated as Hedging Instruments Foreign currency forward-exchange contracts $ 1,984 $ 1,753 Derivatives Designated as Hedging Instruments Foreign exchange derivative instruments (in foreign currency): Euro 650 650 Danish krone 600 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 100 $ 50 Fixed-to-floating interest rate swap contracts $ 250 $ 250
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 September 30, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2023 2022 Derivatives Not Designated as Hedging Instruments Foreign currency forward-exchange contracts Other current assets $ 12 $ 22 Foreign currency forward-exchange contracts Other current liabilities (11) (21) Total derivatives not designated as hedging instruments $ 1 $ 1 Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 17 $ 10 Foreign exchange derivative instruments Other current assets 15 21 Foreign exchange derivative instruments Other noncurrent assets 19 19 Foreign exchange derivative instruments Other current liabilities (5) (9) Foreign exchange derivative instruments Other noncurrent liabilities — (4) Fixed-to-floating interest rate swap contracts Other noncurrent liabilities (36) (32) Total derivatives designated as hedging instruments 10 5 Total derivatives $ 11 $ 6
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The amounts of net gains/(losses) on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Foreign currency forward-exchange contracts $ 16 $ (23) $ (20) $ (49)
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)	The amounts of unrecognized net gains on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive loss , are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Forward-starting interest rate swap contracts $ 5 $ 30 $ 5 $ 77 Foreign exchange derivative instruments $ 18 $ 39 $ 5 $ 84
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location	Gains on interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Foreign exchange derivative instruments $ 4 $ 4 $ 14 $ 11

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventory are as follows: September 30, December 31, (MILLIONS OF DOLLARS) 2023 2022 Finished goods $ 1,185 $ 1,090 Work-in-process 1,062 825 Raw materials and supplies 497 430 Inventories $ 2,744 $ 2,345

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2023
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, 2022 $ 1,485 $ 1,261 $ 2,746 Additions 24 14 38 Transfers/Adjustments (a) 27 (34) (7) Other (b) (2) (13) (15) Balance, September 30, 2023 $ 1,534 $ 1,228 $ 2,762 (a) Primarily related to asset transfers from international markets to the U.S. (b) Includes adjustments for foreign currency translation and the sale of a majority interest in our pet insurance business within our U.S. segment.
Components of Identifiable Intangible Assets	The components of identifiable intangible assets are as follows: As of September 30, 2023 As of December 31, 2022 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 (a) $ 1,994 $ (1,065) $ 929 $ 1,918 $ (975) $ 943 Brands and tradenames 391 (245) 146 395 (237) 158 Other 333 (250) 83 337 (233) 104 Total finite-lived intangible assets 2,718 (1,560) 1,158 2,650 (1,445) 1,205 Indefinite-lived intangible assets: Brands and tradenames 91 — 91 91 — 91 In-process research and development (a)(b) 142 — 142 77 — 77 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 240 — 240 175 — 175 Identifiable intangible assets $ 2,958 $ (1,560) $ 1,398 $ 2,825 $ (1,445) $ 1,380 (a) During the nine months ended September 30, 2023, certain intangible assets related to the acquisition of an Irish biologic therapeutics company, acquired in 2017, were placed into service.

Share-Based Payments (Tables)

Share-Based Payments (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Components of Share-based Compensation Expense	The components of share-based compensation expense are as follows: Three Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 Stock options / stock appreciation rights $ 3 $ 2 $ 6 $ 7 RSUs / DSUs 10 9 27 26 PSUs 4 4 10 13 Share-based compensation expense—total (a) $ 17 $ 15 $ 43 $ 46 (a) For the three and nine months ended September 30, 2023 and 2022, we capitalized less than $1 million of share-based compensation expense to inventory.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2023
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 Benefit Plans Accumulated Other Cash Flow Net Investment Translation Actuarial Comprehensive (MILLIONS OF DOLLARS) Hedges Hedges Adjustments (Losses)/Gains Loss Balance, December 31, 2022 $ 90 $ 41 $ (944) $ (4) $ (817) Other comprehensive income/(loss), net of tax — 5 (6) 4 3 Balance, September 30, 2023 $ 90 $ 46 $ (950) $ — $ (814) Balance, December 31, 2021 $ 4 $ 5 $ (756) $ (17) $ (764) Other comprehensive income/(loss), net of tax 78 84 (208) 1 (45) Balance, September 30, 2022 $ 82 $ 89 $ (964) $ (16) $ (809)

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2023
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 Nine Months Ended (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) September 30, September 30, 2023 2022 2023 2022 Numerator Net income before allocation to noncontrolling interests $ 596 $ 528 $ 1,817 $ 1,651 Less: Net loss attributable to noncontrolling interests — (1) (2) (2) Net income attributable to Zoetis Inc. $ 596 $ 529 $ 1,819 $ 1,653 Denominator Weighted-average common shares outstanding 460.3 467.8 461.9 470.0 Common stock equivalents: stock options, RSUs, PSUs and DSUs 1.1 1.3 1.1 1.6 Weighted-average common and potential dilutive shares outstanding 461.4 469.1 463.0 471.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.29 $ 1.13 $ 3.94 $ 3.52 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.29 $ 1.13 $ 3.93 $ 3.51

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Selected Income Statement Information by Segment	Earnings Depreciation and Amortization (a) Nine Months Ended Nine Months Ended September 30, September 30, (MILLIONS OF DOLLARS) 2023 2022 2023 2022 U.S. Revenue $ 3,344 $ 3,201 Cost of sales 645 587 Gross profit 2,699 2,614 Gross margin 80.7 % 81.7 % Operating expenses 602 578 Other (income)/deductions-net — (6) U.S. Earnings 2,097 2,042 $ 58 $ 40 International Revenue (b) 2,929 2,780 Cost of sales 912 809 Gross profit 2,017 1,971 Gross margin 68.9 % 70.9 % Operating expenses 473 456 Other (income)/deductions-net 1 (5) International Earnings 1,543 1,520 67 62 Total operating segments 3,640 3,562 125 102 Other business activities (354) (315) 24 21 Reconciling Items: Corporate (722) (771) 95 99 Purchase accounting adjustments (124) (120) 118 120 Acquisition-related costs (8) (4) — — Certain significant items (c) 45 (10) — — Other unallocated (191) (278) 3 4 Total Earnings (d) $ 2,286 $ 2,064 $ 365 $ 346 (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 $627 million and $590 million for the nine months ended September 30, 2023 and 2022, respectively. (c) For the nine months ended September 30, 2023, primarily consisted of a gain on the sale of a majority interest in our pet insurance business, partially offset by employee termination costs related to organizational structure refinements and certain asset impairment charges related to our precision animal health and diagnostics businesses. For the nine months ended September 30, 2022, primarily represents inventory and asset impairment charges related to the consolidation of manufacturing sites in China as well as employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets.

Organization (Details)

Organization (Details)	Sep. 30, 2023 productCategory geographicRegion country specie
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	9 Months Ended
	Sep. 30, 2023 USD ($) product_category	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Number of major product lines | product_category	300
Contract liabilities, revenue recognized	$ 4	$ 3
Contract liabilities	$ 13		$ 14

Revenue - Revenue by Geographic

Revenue - Revenue by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331	$ 6,040
United States
Revenue from External Customer [Line Items]
Revenue	1,174	1,090	3,344	3,201
Australia
Revenue from External Customer [Line Items]
Revenue	84	80	248	225
Brazil
Revenue from External Customer [Line Items]
Revenue	101	70	276	233
Canada
Revenue from External Customer [Line Items]
Revenue	63	56	183	172
Chile
Revenue from External Customer [Line Items]
Revenue	31	31	109	106
China
Revenue from External Customer [Line Items]
Revenue	69	92	255	291
France
Revenue from External Customer [Line Items]
Revenue	34	28	102	91
Germany
Revenue from External Customer [Line Items]
Revenue	50	43	148	132
Italy
Revenue from External Customer [Line Items]
Revenue	26	24	87	86
Japan
Revenue from External Customer [Line Items]
Revenue	34	37	120	137
Mexico
Revenue from External Customer [Line Items]
Revenue	42	33	119	101
Spain
Revenue from External Customer [Line Items]
Revenue	30	29	94	97
United Kingdom
Revenue from External Customer [Line Items]
Revenue	78	59	209	174
Other developed markets
Revenue from External Customer [Line Items]
Revenue	127	121	374	354
Other emerging markets
Revenue from External Customer [Line Items]
Revenue	187	186	605	581
Total geographical area
Revenue from External Customer [Line Items]
Revenue	2,130	1,979	6,273	5,981
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	$ 21	$ 23	$ 58	$ 59

Revenue - Revenue by Major Spec

Revenue - Revenue by Major Species (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331		$ 6,040
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	21	23	58		59
Companion animal
Revenue from External Customer [Line Items]
Revenue	1,414	1,271	4,128		3,900
Companion animal | U.S.
Revenue from External Customer [Line Items]
Revenue	908	819	2,588		2,488
Companion animal | International
Revenue from External Customer [Line Items]
Revenue	506	452	1,540		1,412
Livestock
Revenue from External Customer [Line Items]
Revenue	716	708	2,145		2,081
Livestock | U.S.
Revenue from External Customer [Line Items]
Revenue	266	271	756		713
Livestock | International
Revenue from External Customer [Line Items]
Revenue	450	437	1,389		1,368
Operating Segments | U.S.
Revenue from External Customer [Line Items]
Revenue	1,174	1,090	3,344		3,201
Operating Segments | International
Revenue from External Customer [Line Items]
Revenue	$ 956	$ 889	$ 2,929	[1]	$ 2,780	[1]
[1]Revenue denominated in euros was $627 million and $590 million for the nine months ended September 30, 2023 and 2022, respectively.

Revenue - Revenue by Species (D

Revenue - Revenue by Species (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331	$ 6,040
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	21	23	58	59
Dogs and Cats
Revenue from External Customer [Line Items]
Revenue	1,354	1,213	3,931	3,715
Horses
Revenue from External Customer [Line Items]
Revenue	60	58	197	185
Cattle
Revenue from External Customer [Line Items]
Revenue	374	371	1,102	1,063
Swine
Revenue from External Customer [Line Items]
Revenue	129	129	404	427
Poultry
Revenue from External Customer [Line Items]
Revenue	127	116	397	361
Fish
Revenue from External Customer [Line Items]
Revenue	57	60	158	151
Sheep and other
Revenue from External Customer [Line Items]
Revenue	29	32	84	79
Livestock
Revenue from External Customer [Line Items]
Revenue	716	708	2,145	2,081
Companion animal
Revenue from External Customer [Line Items]
Revenue	1,414	1,271	4,128	3,900
Other pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	$ 313	$ 252	$ 922	$ 771

Revenue - Revenue by Product (D

Revenue - Revenue by Product (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from External Customer [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331	$ 6,040
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	21	23	58	59
Vaccines
Revenue from External Customer [Line Items]
Revenue	449	449	1,308	1,300
Parasiticides
Revenue from External Customer [Line Items]
Revenue	465	422	1,465	1,417
Anti-infectives
Revenue from External Customer [Line Items]
Revenue	264	284	796	802
Dermatology
Revenue from External Customer [Line Items]
Revenue	397	348	1,048	978
Other pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	313	252	922	771
Medicated feed additives
Revenue from External Customer [Line Items]
Revenue	86	78	257	261
Animal health diagnostics
Revenue from External Customer [Line Items]
Revenue	95	83	284	268
Other non-pharmaceuticals
Revenue from External Customer [Line Items]
Revenue	61	63	193	184
Total products and services
Revenue from External Customer [Line Items]
Revenue	$ 2,130	$ 1,979	$ 6,273	$ 5,981

Acquisitions and Divestitures (

Acquisitions and Divestitures (Details) - USD ($) $ in Millions			9 Months Ended	12 Months Ended
	Aug. 03, 2023	Sep. 30, 2022	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2023
Asset Acquisition [Line Items]
Goodwill, Acquired During Period			$ 38
PetMedix Ltd. [Member]
Business Combinations [Abstract]
Business Acquisition, Percentage of Voting Interests Acquired			100%
Asset Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 100
Business Acquisition, Percentage of Voting Interests Acquired			100%
Cash Acquired from Acquisition	19
Acquisition of a noncontrolling interest, net of cash acquired	$ 111
Jurox
Business Combinations [Abstract]
Business Acquisition, Percentage of Voting Interests Acquired					100%
Asset Acquisition [Line Items]
Cash and cash equivalents		$ 20
Accounts receivable		8
Inventories		21
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		1
Property, plant and equipment		25
Identifiable intangible assets		135
Other noncurrent assets		7
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		2
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other		12
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other		1
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net		202
Goodwill, Acquired During Period		38
Payments to Acquire Businesses, Gross		240
Business Acquisition, Percentage of Voting Interests Acquired					100%
Business Combination, Consideration Transferred, Before Adjustments		$ 226
Business Combination, Consideration Transferred, Outstanding			$ 5
Acquisition of a noncontrolling interest, net of cash acquired				$ 215

Acquisitions and Divestitures -

Acquisitions and Divestitures - Consideration Transferred (Details) - USD ($) $ in Millions			9 Months Ended	12 Months Ended
	Aug. 03, 2023	Sep. 30, 2022	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2023
Jurox
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 240
Business Combination, Consideration Transferred		240
Business Acquisition, Percentage of Voting Interests Acquired					100%
Business Combination, Consideration Transferred, Before Adjustments		$ 226
Acquisition of a noncontrolling interest, net of cash acquired				$ 215
Business Combination, Consideration Transferred, Outstanding			$ 5
PetMedix Ltd. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 100
Business Acquisition, Percentage of Voting Interests Acquired			100%
Acquisition of a noncontrolling interest, net of cash acquired	111
Business Combination, Consideration Transferred, Cash Withheld For Post-Closing Adjustments	$ 5

Acquisitions - Divestures (Deta

Acquisitions - Divestures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash proceeds			$ 96	$ 0
Net gain on sale of business(c)	$ 0	$ 0	101	$ 0
Remeasurement of retained noncontrolling investment to fair value	$ 24		24
Pumpkin Insurance Services
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash proceeds			93
Sale proceeds			99
net of cash sold amount			6
Net gain on sale of business(c)			$ 101

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				9 Months Ended
		Sep. 30, 2023		Sep. 30, 2022		Sep. 30, 2023	Sep. 30, 2022		Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Acquisition-related costs		$ 2		$ 0		$ 4	$ 0
Asset write-offs and asset impairments						27	7
Exit costs		4		1		4	1
Total Restructuring charges and certain acquisition-related costs		16		6		45	9
Restructuring Reserve [Roll Forward]
Restructuring accrual balance	[1],[2]					15
Restructuring charges (reversals)						38
Restructuring Reserve, Settled without Cash						(1)
Utilization and other	[1],[3]					(18)
Restructuring accrual balance	[1],[2]	34				34
Other current liabilities
Restructuring Reserve [Roll Forward]
Accrued expenses		25				25			$ 5
Other noncurrent liabilities
Restructuring Reserve [Roll Forward]
Other noncurrent liabilities		9				9			$ 10
Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Severance Costs		8		2		33	2
Facility Closing
Restructuring Cost and Reserve [Line Items]
Asset write-offs and asset impairments		1		2		1	2
Direct Cost
Restructuring Cost and Reserve [Line Items]
Integration costs		$ 1	[4]	$ 1	[4]	$ 3	$ 4	[4]
[1] — Accrued expenses ($25 million and $5 million, respectively) and Other noncurrent liabilities

Other (Income)_Deductions - N_3

Other (Income)/Deductions - Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
Royalty-related income(a)	$ (1)	$ (1)	$ (36)	$ (3)
Interest income	(23)	(13)	(79)	(20)
Identifiable intangible asset impairment charges(b)	6	1	17	1
Other asset impairment charges	1	0	1	0
Net gain on sale of business(c)	0	0	(101)	0
Foreign currency loss	19	11	41	36
Other, net	4	(1)	6	(8)
Other (income)/deductions—net	$ 6	$ (3)	$ (151)	$ 6

Income Taxes - Taxes on Income

Income Taxes - Taxes on Income (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate for income from continuing operations	16.90%	20.80%	20.50%	20%

Income Taxes - Deferred Taxes (

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Noncurrent deferred tax liabilities	$ 30	$ 31
Noncurrent deferred tax assets	190	173
Noncurrent deferred tax liabilities	$ 160	$ 142

Income Taxes - Tax Contingencie

Income Taxes - Tax Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	$ 202	$ 194
Unrecognized tax benefits, income tax penalties and interest accrued	27	19
Noncurrent Deferred Tax Assets
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	2	2
Other Taxes Payable
Income Tax Contingency [Line Items]
Liabilities associated with uncertain tax positions	$ 200	$ 192

Financial Instruments - Credit

Financial Instruments - Credit Facilities (Details)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50,000,000
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments:
Line of Credit Facility [Line Items]
Collateral posted	$ 32,000,000	$ 21,000,000
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 ($)	Sep. 30, 2023	Dec. 31, 2022	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	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Feb. 01, 2023	Dec. 31, 2022	Nov. 08, 2022	Jan. 28, 2013
Debt Instrument [Line Items]
Repayments of long-term debt	$ 1,350	$ 0
Debt, principal amount	6,650			$ 8,000
Senior Notes
Debt Instrument [Line Items]
Debt, purchase price percent due to downgrade of investment grade						101%
Senior Notes | 2.000% 2020 senior notes due 2030
Debt Instrument [Line Items]
Debt, principal amount	$ 750			750
Interest rate percentage	2%
Senior Notes | 3.000% 2020 senior notes due 2050
Debt Instrument [Line Items]
Debt, principal amount	$ 500			500
Interest rate percentage	3%
Senior Notes | 2022 Senior Notes
Debt Instrument [Line Items]
Debt, principal amount					$ 1,350
Debt, unamortized discount					$ 2
Senior Notes | 5.400% Senior Notes Due 2025
Debt Instrument [Line Items]
Debt, principal amount	$ 600			600
Interest rate percentage					5.40%
Senior Notes | 5.600% Senior Notes Due 2032
Debt Instrument [Line Items]
Debt, principal amount	750			750
Interest rate percentage					5.60%
Senior Notes | 3.250% 2013 senior notes due 2023
Debt Instrument [Line Items]
Debt, principal amount	$ 0		$ 1,350	$ 1,350
Interest rate percentage	3.25%

Financial Instruments - Schedul

Financial Instruments - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Feb. 01, 2023	Dec. 31, 2022	Nov. 08, 2022
Debt Instrument [Line Items]
Debt, principal amount	$ 6,650		$ 6,650			$ 8,000
Unamortized debt discount / debt issuance costs	(62)		(62)			(66)
Current portion of long-term debt	0		0			1,350
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	(36)		(36)			(32)
Long-term debt, net of discount and issuance costs	6,552		6,552			6,552
Capitalized interest	$ 7	$ 5	$ 19	$ 16
Senior Notes | 3.250% 2013 senior notes due 2023
Debt Instrument [Line Items]
Interest rate percentage	3.25%		3.25%
Debt, principal amount	$ 0		$ 0		$ 1,350	1,350
Senior Notes | 4.500% 2015 senior notes due 2025
Debt Instrument [Line Items]
Interest rate percentage	4.50%		4.50%
Debt, principal amount	$ 750		$ 750			750
Senior Notes | 3.000% 2017 senior notes due 2027
Debt Instrument [Line Items]
Interest rate percentage	3%		3%
Debt, principal amount	$ 750		$ 750			750
Senior Notes | 3.900% 2018 senior notes due 2028
Debt Instrument [Line Items]
Interest rate percentage	3.90%		3.90%
Debt, principal amount	$ 500		$ 500			500
Senior Notes | 2.000% 2020 senior notes due 2030
Debt Instrument [Line Items]
Interest rate percentage	2%		2%
Debt, principal amount	$ 750		$ 750			750
Senior Notes | 4.700% 2013 senior notes due 2043
Debt Instrument [Line Items]
Interest rate percentage	4.70%		4.70%
Debt, principal amount	$ 1,150		$ 1,150			1,150
Senior Notes | 3.950% 2017 senior notes due 2047
Debt Instrument [Line Items]
Interest rate percentage	3.95%		3.95%
Debt, principal amount	$ 500		$ 500			500
Senior Notes | 4.450% 2018 senior notes due 2048
Debt Instrument [Line Items]
Interest rate percentage	4.45%		4.45%
Debt, principal amount	$ 400		$ 400			400
Senior Notes | 3.000% 2020 senior notes due 2050
Debt Instrument [Line Items]
Interest rate percentage	3%		3%
Debt, principal amount	$ 500		$ 500			500
Senior Notes | 5.400% Senior Notes Due 2025
Debt Instrument [Line Items]
Interest rate percentage							5.40%
Debt, principal amount	600		600			600
Senior Notes | 5.600% Senior Notes Due 2032
Debt Instrument [Line Items]
Interest rate percentage							5.60%
Debt, principal amount	$ 750		$ 750			$ 750

Financial Instruments - Fair Va

Financial Instruments - Fair Value of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Senior Notes | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value, debt instrument	$ 5,893	$ 6,108

Financial Instruments - Long-te

Financial Instruments - Long-term Debt Maturity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financial Instruments [Abstract]
2023	$ 0		$ 0
2024	0		0
2025	1,350,000,000		1,350,000,000
2026	0		0
2027	750,000,000		750,000,000
After 2025	4,550,000,000		4,550,000,000
Total long-term debt	6,650,000,000		6,650,000,000		$ 8,000,000,000
Interest expense, net of capitalized interest	59,000,000	$ 53,000,000	180,000,000	$ 159,000,000
Capitalized interest	7,000,000	$ 5,000,000	19,000,000	$ 16,000,000
Line Of Credit For General Corporate Purpose
Line of Credit Facility [Line Items]
Line of credit facility	$ 2,000,000		$ 2,000,000		$ 2,000,000

Financial Instruments - Foreign

Financial Instruments - Foreign Exchange Risk (Details)	9 Months Ended
	Sep. 30, 2023
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 | Foreign exchange derivative instruments
Derivative [Line Items]
Maturity period (in years)	2 years

Financial Instruments - Interes

Financial Instruments - Interest Rate Risk (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Nov. 08, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Cash Received on Hedge	$ 114
Forward-starting interest rate swaps | Derivatives Designated as Hedging Instruments:
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount	$ 100	$ 50
Senior Notes | Forward-starting interest rate swaps | Derivatives Designated as Hedging Instruments:
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount		$ 650
Senior Notes | 3.250% 2013 senior notes due 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	3.25%
Senior Notes | 4.500% 2015 senior notes due 2025
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	4.50%
Senior Notes | 5.600% Senior Notes Due 2032
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage			5.60%
Senior Notes | 3.900% 2018 senior notes due 2028
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	3.90%
Senior Notes | 2.000% 2020 senior notes due 2030
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Interest rate percentage	2%

Financial Instruments Derivativ

Financial Instruments Derivative Notional Amounts (Details) € in Millions, kr in Millions, SFr in Millions, $ in Millions	Sep. 30, 2023 USD ($)	Sep. 30, 2023 EUR (€)	Sep. 30, 2023 DKK (kr)	Sep. 30, 2023 CHF (SFr)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2022 DKK (kr)	Dec. 31, 2022 CHF (SFr)
Foreign exchange derivative instruments
Derivative [Line Items]
Derivative notional amount	$ 250	€ 650	kr 600	SFr 25	$ 250	€ 650	kr 600	SFr 25
Derivatives Not Designated as Hedging Instruments | Foreign currency forward-exchange contracts
Derivative [Line Items]
Derivative notional amount	1,984				1,753
Derivatives Designated as Hedging Instruments: | Forward-starting interest rate swaps
Derivative [Line Items]
Derivative notional amount	$ 100				$ 50

Financial Instruments - Fair _2

Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Total derivatives	$ 11		$ 11		$ 6
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Total derivatives	10		10		5
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Total derivatives	1		1		1
Foreign currency forward-exchange contracts	16	$ (23)	(20)	$ (49)
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	12		12		22
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	(11)		(11)		(21)
Forward-starting interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	17		17		10
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Collateral received	25		25
Collateral posted	32		32		21
Additional Collateral, Aggregate Fair Value					8
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	15		15		21
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	5		5		9
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	19		19		19
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	0		0		4
Fixed-to-floating interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative assets	$ (36)		$ (36)		$ (32)

Financial Instruments Cross-cur

Financial Instruments Cross-currency forward-exchange contracts (Details) - Derivatives Designated as Hedging Instruments: - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Forward-starting interest rate swap contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gains on derivatives for net investment hedges, net of tax of $5 and $11 for the three months ended September 30, 2023 and 2022, respectively, and $1 and $24 for the nine months ended September 30, 2023 and 2022, respectively	$ 5	$ 30	$ 5	$ 77
Foreign exchange derivative instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gains on derivatives for net investment hedges, net of tax of $5 and $11 for the three months ended September 30, 2023 and 2022, respectively, and $1 and $24 for the nine months ended September 30, 2023 and 2022, respectively	$ 18	$ 39	$ 5	$ 84

Financial Instruments Cross-c_2

Financial Instruments Cross-currency interest rate swap contracts (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Foreign exchange derivative instruments | 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	$ 4	$ 4	$ 14	$ 11

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 1,185	$ 1,090
Work-in-process	1,062	825
Raw materials and supplies	497	430
Inventories	$ 2,744	$ 2,345

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 2,746
Goodwill, Acquired During Period	38
Transfers/Adjustments(a)	(7)
Other	(15)	[1]
Ending Balance	2,762
United States (U.S.)
Goodwill [Roll Forward]
Beginning Balance	1,485
Goodwill, Acquired During Period	24
Transfers/Adjustments(a)	27
Other	(2)	[1]
Ending Balance	1,534
International
Goodwill [Roll Forward]
Beginning Balance	1,261
Goodwill, Acquired During Period	14
Transfers/Adjustments(a)	(34)
Other	(13)	[1]
Ending Balance	$ 1,228
[1]Includes adjustments for foreign currency translation and the sale of a majority interest in our pet insurance business within our U.S. segment.

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Gross goodwill	$ 3,298		$ 3,298		$ 3,282
Accumulated goodwill impairment losses	536		536		$ 536
Amortization of intangible assets	$ 46	$ 48	$ 141	$ 147

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 2,718	$ 2,650
Finite-lived intangible assets, accumulated amortization	(1,560)	(1,445)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	1,158	1,205
Total indefinite-lived intangible assets	240	175
Intangible Assets, gross carrying amount	2,958	2,825
Identifiable intangible assets, less accumulated amortization	1,398	1,380
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	91	91
In-process research and development(a)(b)
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	142	77
Product rights
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	7	7
Developed technology rights(a)
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	1,994	1,918
Finite-lived intangible assets, accumulated amortization	(1,065)	(975)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	929	943
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	391	395
Finite-lived intangible assets, accumulated amortization	(245)	(237)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	146	158
Other
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	333	337
Finite-lived intangible assets, accumulated amortization	(250)	(233)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	$ 83	$ 104

Share-Based Payments - Narrativ

Share-Based Payments - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, options granted, shares | shares	271,150
Share-based compensation, weighted average exercise price (in dollars per share)	$ 162.12
Share-based compensation, Options, weighted average grant date fair value (in dollars per share)	$ 43.56
Share-based compensation, risk free interest rate	3.84%
Share-based compensation, expected dividend rate	0.92%
Share-based compensation, expected volatility rate	28.63%
Share-based compensation, expected term	4 years 2 months 12 days
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 Arrangement by Share-Based Payment Award, Award Graded Vesting Period	3 years
Share-based compensation, granted, shares | shares	270,960
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 162.53
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	31.80%
Share-based compensation, award vesting period	3 years
Share-based compensation, granted, shares | shares	99,626
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 238.24
Performance Shares | PeerCompanies
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	40.90%
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, target number of units percentage	0%
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, target number of units percentage	200%

Share-Based Payments - Componen

Share-Based Payments - Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	[1]	$ 17	$ 15	$ 43	$ 46
Stock options / stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		3	2	6	7
RSUs / DSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		10	9	27	26
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		$ 4	$ 4	$ 10	$ 13
[1]For the three and nine months ended September 30, 2023 and 2022, we capitalized less than $1 million of share-based compensation expense to inventory

Stockholders' Equity - Changes

Stockholders' Equity - Changes in Common Shares and Treasury Stock (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2021
Class of Stock [Line Items]
Common stock, shares authorized	6,000,000,000
Preferred stock, shares authorized	1,000,000,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	1,700,000,000
December 2021 Share Repurchase Program
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 3,500,000,000

Stockholders' Equity - Change_2

Stockholders' Equity - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 4,621	$ 4,580	$ 4,403	$ 4,544
Other comprehensive income/(loss), net of tax	81	(87)	3	(45)
Ending balance	5,074	4,662	5,074	4,662
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(895)	(722)	(817)	(764)
Other comprehensive income/(loss), net of tax	81	(87)	3	(45)
Ending balance	(814)	(809)	(814)	(809)
Derivatives Net Unrealized Gains/ (Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			90	4
Other comprehensive income/(loss), net of tax			0	78
Ending balance	90	82	90	82
Net Investment Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			41	5
Other comprehensive income/(loss), net of tax			5	84
Ending balance	46	89	46	89
Currency Translation Adjustment Net Unrealized Gain/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(944)	(756)
Other comprehensive income/(loss), net of tax			(6)	(208)
Ending balance	(950)	(964)	(950)	(964)
Benefit Plans Actuarial Gains/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(4)	(17)
Other comprehensive income/(loss), net of tax			4	1
Ending balance	$ 0	$ (16)	$ 0	$ (16)

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator
Net income before allocation to noncontrolling interests	$ 596	$ 528	$ 1,817	$ 1,651
Less: Net loss attributable to noncontrolling interests	0	(1)	(2)	(2)
Net income attributable to Zoetis Inc.	$ 596	$ 529	$ 1,819	$ 1,653
Denominator
Weighted-average common shares outstanding	460,300,000	467,800,000	461,900,000	470,000,000
Common stock equivalents: stock options, RSUs, PSUs and DSUs	1,100,000	1,300,000	1,100,000	1,600,000
Weighted-average common and potential dilutive shares outstanding	461,400,000	469,100,000	463,000,000	471,600,000
Earnings per share attributable to Zoetis stockholders—basic (in dollars per share)	$ 1.29	$ 1.13	$ 3.94	$ 3.52
Earnings per share attributable to Zoetis stockholders—diluted (in dollars per share)	$ 1.29	$ 1.13	$ 3.93	$ 3.51
Antidilutive securities excluded from computation of earnings per share, amount	0			0

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions		1 Months Ended	6 Months Ended
	Sep. 16, 2019 Companies	Apr. 30, 2012	Jun. 30, 2016 USD ($)	Feb. 29, 2012 defendant
Loss Contingencies [Line Items]
Number of multinational companies | Companies	39
Ulianopolis, Brazil
Loss Contingencies [Line Items]
Number of additional defendants				5
Number of claims seeking damages				6
Duration of suspension of lawsuit		1 year
European Commission
Loss Contingencies [Line Items]
Net tax charge | $			$ 35

Segment Information (Details)

Segment Information (Details)	9 Months Ended
	Sep. 30, 2023 segment
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Segment Reporting Information [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331		$ 6,040
Cost of sales	638	607	1,833		1,801
Other (income)/deductions—net	6	(3)	(151)		6
Income before provision for taxes on income	717	667	2,286	[1]	2,064	[1]
Depreciation and amortization	124	115	365	[1],[2]	346	[1],[2]
Acquisition-related costs	2	0	4		0
Other business activities
Segment Reporting Information [Line Items]
Income before provision for taxes on income	(124)	(106)	(354)		(315)
Depreciation and amortization	9	7	24	[2]	21	[2]
Operating Segments
Segment Reporting Information [Line Items]
Income before provision for taxes on income	1,237	1,165	3,640		3,562
Depreciation and amortization	43	33	125	[2]	102	[2]
Operating Segments | U.S.
Segment Reporting Information [Line Items]
Revenue	1,174	1,090	3,344		3,201
Cost of sales	228	204	645		587
Gross profit	$ 946	$ 886	$ 2,699		$ 2,614
Gross margin, percentage	80.60%	81.30%	80.70%		81.70%
Operating expenses	$ 202	$ 206	$ 602		$ 578
Other (income)/deductions—net	0	1	0		(6)
Income before provision for taxes on income	744	679	2,097		2,042
Depreciation and amortization	19	12	58	[2]	40	[2]
Operating Segments | International
Segment Reporting Information [Line Items]
Revenue	956	889	2,929	[3]	2,780	[3]
Cost of sales	306	256	912		809
Gross profit	$ 650	$ 633	$ 2,017		$ 1,971
Gross margin, percentage	68%	71.20%	68.90%		70.90%
Operating expenses	$ 156	$ 150	$ 473		$ 456
Other (income)/deductions—net	1	(3)	1		(5)
Income before provision for taxes on income	493	486	1,543		1,520
Depreciation and amortization	24	21	67	[2]	62	[2]
Corporate
Segment Reporting Information [Line Items]
Income before provision for taxes on income	(258)	(245)	(722)		(771)
Depreciation and amortization	33	33	95	[2]	99	[2]
Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization	0	0	0	[2]	0	[2]
Purchase accounting adjustments	(39)	(40)	(124)		(120)
Purchase accounting adjustments, Depreciation and Amortization	39	40	118	[2]	120	[2]
Acquisition-related costs	(3)	(1)	(8)		(4)
Certain significant items, Earnings	(23)	(6)	45	[4]	(10)	[4]
Certain significant items, Depreciation and Amortization	0	0	0	[2],[4]	0	[2],[4]
Other unallocated	(73)	(100)	(191)		(278)
Other Unallocated, Depreciation and Amortization	$ 0	$ 2	$ 3	[2]	$ 4	[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 $627 million and $590 million for the nine months ended September 30, 2023 and 2022, respectively.[4]For the nine months ended September 30, 2023, primarily consisted of a gain on the sale of a majority interest in our pet insurance business, partially offset by employee termination costs related to organizational structure refinements and certain asset impairment charges related to our precision animal health and diagnostics businesses.For the nine months ended September 30, 2022, primarily represents inventory and asset impairment charges related to the consolidation of manufacturing sites in China as well as employee termination and exit costs associated with cost-reduction and productivity initiatives in certain international markets.

Segment Information Selected _2

Segment Information Selected Statement of Income Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Segment Reporting Information [Line Items]
Revenue	$ 2,151	$ 2,002	$ 6,331		$ 6,040
International | Operating Segments
Segment Reporting Information [Line Items]
Revenue	956	889	2,929	[1]	2,780	[1]
International | Operating Segments | Euro Member Countries, Euro
Segment Reporting Information [Line Items]
Revenue	$ 206	$ 183	$ 627		$ 590
[1]Revenue denominated in euros was $627 million and $590 million for the nine months ended September 30, 2023 and 2022, respectively.