Zoetis (ZTS) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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		456,295,137
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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
		Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue		$ 2,190	$ 2,000
Costs and expenses:
Cost of sales		643	588
Selling, general and administrative expenses		547	505
Research and development expenses		162	142
Amortization of intangible assets		37	37
Restructuring charges and certain acquisition-related costs		4	21
Interest expense, net of capitalized interest		58	63
Other (income)/deductions—net		(8)	(53)
Income before provision for taxes on income	[1]	747	697
Provision for taxes on income		148	146
Net income before allocation to noncontrolling interests		599	551
Less: Net loss attributable to noncontrolling interests		0	(1)
Net income attributable to Zoetis Inc.		$ 599	$ 552
Earnings per share attributable to Zoetis Inc. stockholders:
Basic (in dollars per share)		$ 1.31	$ 1.19
Diluted (in dollars per share)		$ 1.31	$ 1.19
Weighted-average common shares outstanding:
Basic (in shares)		458	463.5
Diluted (in shares)		458.8	464.6
Dividends paid per common share (in dollars per share)		$ 0.432	$ 0.375
[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
		Mar. 31, 2024	Mar. 31, 2023
Net income before allocation to noncontrolling interests		$ 599	$ 551
Other comprehensive loss, net of tax(a):
Foreign currency translation adjustments	[1]	(18)	(7)
Benefit plans: Actuarial gains, net of tax of $0 and $1 for the three months ended March 31, 2024 and 2023, respectively	[1]	0	4
Other comprehensive income/(loss), net of tax		(2)	(11)
Comprehensive income before allocation to noncontrolling interests		597	540
Less: Comprehensive loss attributable to noncontrolling interests		0	(1)
Comprehensive income attributable to Zoetis Inc.		597	541
Cash Flow Hedging
Other comprehensive loss, net of tax(a):
Unrealized gains on derivatives for cash flow hedges, net and net investment hedges	[1]	0	(2)
Net Investment Hedging
Other comprehensive loss, net of tax(a):
Unrealized gains on derivatives for cash flow hedges, net and net investment hedges	[1]	$ 16	$ (6)
[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
	Mar. 31, 2024	Mar. 31, 2023
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	$ 0	$ 1,000
Cash Flow Hedging
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	0	(1,000)
Net Investment Hedging
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	$ 5,000	$ (2,000)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	[1]	$ 1,975	$ 2,041
Accounts receivable, less allowance for doubtful accounts of $20 in 2024 and $18 in 2023		1,293	1,304
Inventories		2,651	2,564
Other current assets		440	434
Total current assets		6,359	6,343
Property, plant and equipment, less accumulated depreciation of $2,673 in 2024 and $2,594 in 2023		3,251	3,204
Operating lease right of use assets		225	230
Goodwill		2,759	2,759
Identifiable intangible assets, less accumulated amortization		1,295	1,338
Noncurrent deferred tax assets		232	206
Other noncurrent assets		227	206
Total assets		14,348	14,286
Liabilities and Equity
Short-term borrowings		24	3
Accounts payable		405	411
Dividends payable		198	198
Accrued expenses		691	683
Accrued compensation and related items		272	382
Income taxes payable		230	110
Other current liabilities		89	102
Total current liabilities		1,909	1,889
Long-term debt, net of discount and issuance costs		6,562	6,564
Noncurrent deferred tax liabilities		136	146
Operating lease liabilities		184	188
Other taxes payable		277	271
Other noncurrent liabilities		228	237
Total liabilities		9,296	9,295
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; 456,947,205 and 458,367,358 shares outstanding at March 31, 2024, and December 31, 2023, respectively		5	5
Treasury stock, at cost, 44,944,038 and 43,523,885 shares of common stock at March 31, 2024 and December 31, 2023, respectively		(5,928)	(5,597)
Additional paid-in capital		1,126	1,133
Retained earnings		10,696	10,295
Accumulated other comprehensive loss		(841)	(839)
Total Zoetis Inc. equity		5,058	4,997
Equity attributable to noncontrolling interests		(6)	(6)
Total equity		5,052	4,991
Total liabilities and equity		$ 14,348	$ 14,286
[1] As of March 31, 2024 and December 31, 2023, includes $2 million of restricted cash.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 20	$ 18
Accumulated depreciation	$ 2,673	$ 2,594
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	456,947,205	458,367,358
Treasury stock, shares	44,944,038	43,523,885
Restricted cash	$ 2	$ 2

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Treasury Stock Share Repurchase Program	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Equity Attributable to Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2022		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	551					552		(1)
Other comprehensive income/(loss), net of tax	(11)						(11)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			38,100,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares			(1,700,000)	(400,000)
Share-based compensation awards	7		$ 17		(9)	(1)
Treasury stock acquired	(285)		(285)
Dividends, Common Stock	(174)					(174)
Ending balance (in shares) at Mar. 31, 2023		501,900,000
Ending balance at Mar. 31, 2023	$ 4,491	$ 5	$ (4,807)		1,079	9,045	(828)	(3)
Treasury stock, ending balance (in shares) at Mar. 31, 2023			39,400,000
Beginning balance (in shares) at Dec. 31, 2023	501,891,243	501,900,000
Beginning balance at Dec. 31, 2023	$ 4,991	$ 5	$ (5,597)		1,133	10,295	(839)	(6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	599					599		0
Other comprehensive income/(loss), net of tax	$ (2)						(2)
Treasury stock, beginning balance (in shares) at Dec. 31, 2023	43,523,885		43,500,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock acquired, shares			(1,800,000)	(400,000)
Share-based compensation awards	$ 4		$ 11		(7)	0
Treasury stock acquired	(342)		(342)
Dividends, Common Stock	$ (198)					(198)
Ending balance (in shares) at Mar. 31, 2024	501,891,243	501,900,000
Ending balance at Mar. 31, 2024	$ 5,052	$ 5	$ (5,928)		$ 1,126	$ 10,696	$ (841)	$ (6)
Treasury stock, ending balance (in shares) at Mar. 31, 2024	44,944,038		44,900,000

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Operating Activities
Net income before allocation to noncontrolling interests		$ 599	$ 551
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization expense	[1],[2]	126	120
Share-based compensation expense		18	9
Asset write-offs and asset impairments		2	1
Provision for losses on inventory		17	16
Deferred taxes		(43)	8
Other changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(12)	27
Inventories		(98)	(235)
Other assets		(9)	(24)
Accounts payable		(3)	22
Other liabilities		(125)	(63)
Other tax accounts, net		126	118
Net cash provided by operating activities		595	549
Investing Activities
Capital expenditures		(140)	(223)
Acquisitions, net of cash acquired		0	(7)
Purchase of investments		(1)	(1)
Proceeds from derivative instrument activity, net		10	13
Net proceeds from sale of assets		1	2
Payments for (Proceeds from) Other Investing Activities		(1)	0
Net cash used in investing activities		(131)	(216)
Financing Activities
Increase in short-term borrowings, net		21	1
Principal payments on long-term debt		0	(1,350)
Share-based compensation-related proceeds, net of taxes paid on withholding shares		(8)	4
Purchases of treasury stock		(339)	(283)
Cash dividends paid		(198)	(174)
Net cash used in financing activities		(524)	(1,802)
Effect of exchange-rate changes on cash and cash equivalents		(6)	(3)
Net decrease in cash and cash equivalents		(66)	(1,472)
Cash and cash equivalents at beginning of period		2,041	3,581	$ 3,581
Cash and cash equivalents at end of period		1,975	2,109	2,041
Dividends declared, not paid		198		$ 174
Cash paid during the period for:
Income taxes		59	20
Interest, net of capitalized interest		68	89
Amounts included in the measurement of lease liabilities:		15	14
Non-cash transactions:
Capital expenditures		3	3
Excise tax accrued on net share repurchases, not paid		3	2
Lease obligations obtained in exchange for right-of-use assets - operating		8	13
Other Noncash Income (Expense)		$ 3	$ 1
[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	3 Months Ended
	Mar. 31, 2024
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. We organize and operate our business in two geographic regions: the United States (U.S.) and International.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2024
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 months ended February 29, 2024 and February 28, 2023. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. Certain reclassifications of prior year information have been made to conform to the current year's presentation.

Accounting Standards

Accounting Standards	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Accounting Standards	3. Accounting Standards Recently Issued Accounting Standards In December 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance requires expanded annual and interim disclosures for significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. This update is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The update is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our notes to the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax disclosures. The new guidance requires standardized categories for the effective tax rate reconciliation, disaggregation of income taxes paid and other income tax-related disclosures. This update is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that the new guidance will have on our notes to the consolidated financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
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. In the first quarter of 2024, we modified the list of major product categories to include a category for pain and sedation products, which were previously included within other pharmaceutical products. The prior period presentation has been revised to reflect the new product category. 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 that relieve itch associated with allergic conditions and atopic dermatitis; • anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa; • pain and sedation: products that alleviate pain, primarily associated with osteoarthritis and postoperative pain; • other pharmaceutical: antiemetic, reproductive and oncology products; • 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 March 31, (MILLIONS OF DOLLARS) 2024 2023 United States $ 1,163 $ 1,005 Australia 73 82 Brazil 101 84 Canada 61 50 Chile 31 39 China 76 102 France 41 34 Germany 51 45 Italy 28 26 Japan 37 39 Mexico 44 39 Spain 32 33 United Kingdom 77 68 Other developed markets 127 122 Other emerging markets 228 215 2,170 1,983 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000 Revenue by major species Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 U.S. Companion animal $ 898 $ 721 Livestock 265 284 1,163 1,005 International Companion animal 552 504 Livestock 455 474 1,007 978 Total Companion animal 1,450 1,225 Livestock 720 758 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000 Revenue by species Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Companion Animal: Dogs and Cats $ 1,384 $ 1,153 Horses 66 72 1,450 1,225 Livestock: Cattle 391 399 Poultry 139 139 Swine 127 142 Fish 45 49 Sheep and other 18 29 720 758 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000 Revenue by major product category Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Parasiticides $ 504 $ 432 Vaccines 452 429 Dermatology 363 292 Anti-infectives 281 288 Pain and sedation 194 116 Other pharmaceutical 156 178 Animal health diagnostics 82 93 Medicated feed additives 77 87 Other non-pharmaceutical 61 68 2,170 1,983 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000 B. Revenue from Contracts with Customers Contract liabilities reflected within Other current liabilities as of December 31, 2023 and 2022, and subsequently recognized as revenue during the first three months of 2024 and 2023 were $2 million and $1 million, respectively. Contract liabilities as of March 31, 2024 and December 31, 2023 were $13 million and $11 million, respectively.

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2024
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. B. Divestitures During the second quarter of 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. 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. We also completed the divestiture of Performance Livestock Analytics, part of our precision animal health business in the third quarter of 2023. The transaction did not have a material impact on our condensed consolidated financial statements.

Restructuring Charges and Other

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives	3 Months Ended
	Mar. 31, 2024
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 workforce reductions and site closings. 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 company, which may include charges related to employees, assets and activities that will not continue in the 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 March 31, (MILLIONS OF DOLLARS) 2024 2023 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ — $ 1 Restructuring charges, net (b) : Employee termination costs, net 4 20 Total Restructuring charges and certain acquisition-related costs $ 4 $ 21 (a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) The restructuring charges for the three months ended March 31, 2024 primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. The restructuring charges for the three months ended March 31, 2023 primarily consisted of employee termination costs related to organizational structure refinements. (MILLIONS OF DOLLARS) Accrual Balance, December 31, 2023 (a) $ 35 Provision 11 Reserve adjustment (7) Utilization and other (b) (12) Balance, March 31, 2024 (a) $ 27 (a) At March 31, 2024 and December 31, 2023, included in Accrued expenses ($25 million and $26 million, respectively) and Other noncurrent liabilities ($2 million and $9 million, respectively). (b)

Other (Income)_Deductions - Net

Other (Income)/Deductions - Net	3 Months Ended
	Mar. 31, 2024
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 March 31, (MILLIONS OF DOLLARS) 2024 2023 Royalty-related income (a) $ (2) $ (34) Interest income (32) (33) Foreign currency loss (b) 19 9 Other, net 7 5 Other (income)/deductions—net $ (8) $ (53) (a) For the three months ended March 31, 2023, predominantly associated with a settlement for underpayment of royalties in prior periods.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes A. Taxes on Income Our effective tax rate was 19.8% and 20.9% for the three months ended March 31, 2024 and 2023, respectively. The lower effective tax rate for the three months ended March 31, 2024, compared with the three months ended March 31, 2023, was primarily attributable to a higher benefit in the U.S. related to foreign-derived intangible income and a more favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs). 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 months ended March 31, 2024 and 2023. The global minimum tax provisions (Pillar Two) resulting from the Organisation for Economic Co-operation and Development (OECD) Based Erosion and Profit Shifting project are effective beginning in 2024 and the impact of these provisions is included in our effective tax rate for the three months ended March 31, 2024. B. Deferred Taxes As of March 31, 2024, the total net deferred income tax asset of $96 million is included in Noncurrent deferred tax assets ($232 million) and Noncurrent deferred tax liabilities ($136 million). As of December 31, 2023, the total net deferred income tax asset of $60 million is included in Noncurrent deferred tax assets ($206 million) and Noncurrent deferred tax liabilities ($146 million). C. Tax Contingencies As of March 31, 2024, the net tax liabilities associated with uncertain tax positions of $212 million (exclusive of interest and penalties related to uncertain tax positions of $29 million) are included in Other taxes payable . As of December 31, 2023, the net tax liabilities associated with uncertain tax positions of $209 million (exclusive of interest and penalties related to uncertain tax positions of $27 million) are included in Other taxes payable . 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	3 Months Ended
	Mar. 31, 2024
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. 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 March 31, 2024 and December 31, 2023. There were no amounts drawn under the credit facility as of March 31, 2024 or December 31, 2023. 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 March 31, 2024, we had access to $60 million of lines of credit which expire at various times and are generally renewed annually. There was $3 million of borrowings outstanding related to these facilities as of March 31, 2024 and December 31, 2023. In addition, there was $21 million of other short-term borrowings as of March 31, 2024. Commercial Paper Program In February 2013, we entered into a commercial paper program with a capacity of up to $1.0 billion. As of March 31, 2024 and December 31, 2023, 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: March 31, December 31, (MILLIONS OF DOLLARS) 2024 2023 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 6,650 Unamortized debt discount / debt issuance costs (59) (60) Cumulative fair value adjustment for interest rate swap contracts (29) (26) Long-term debt, net of discount and issuance costs $ 6,562 $ 6,564 The fair value of our long-term debt was $6,156 million and $6,319 million as of March 31, 2024 and December 31, 2023, respectively, and has been determined using a third-party model that uses significant inputs derived from, or corroborated by, observable market data, including benchmark security prices and Zoetis’ credit spreads (Level 2 inputs). The following table provides the principal amount of debt outstanding, as of March 31, 2024, by scheduled maturity date: After (MILLIONS OF DOLLARS) 2024 2025 2026 2027 2028 2028 Total Maturities $ — $ 1,350 $ — $ 750 $ 500 $ 4,050 $ 6,650 Interest Expense Interest expense, net of capitalized interest, was $58 million and $63 million for the three months ended March 31, 2024 and 2023, respectively. Capitalized interest expense was $8 million and $6 million for the three months ended March 31, 2024 and 2023, 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 renminbi, euro and Norwegian krone. Changes in fair value are reported in earnings or in Accumulated other comprehensive 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 four 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 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 Condensed 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 March 31, 2024, 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 of the 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 March 31, 2024, 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% 2020 senior notes due 2030. The amounts recorded during the three months ended March 31, 2024 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 March 31, December 31, (MILLIONS) 2024 2023 Derivatives not Designated as Hedging Instruments: Foreign currency forward-exchange contracts $ 2,194 $ 1,948 Derivatives Designated as Hedging Instruments: Foreign exchange derivative instruments (in foreign currency): Euro 650 650 Danish krone 575 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 100 $ 100 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 March 31, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2024 2023 Derivatives Not Designated as Hedging Instruments: Foreign currency forward-exchange contracts Other current assets $ 10 $ 11 Foreign currency forward-exchange contracts Other current liabilities (7) (11) Total derivatives not designated as hedging instruments $ 3 $ — Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 14 $ 12 Foreign exchange derivative instruments Other current assets 12 5 Foreign exchange derivative instruments Other noncurrent assets 15 11 Foreign exchange derivative instruments Other current liabilities (7) (20) Foreign exchange derivative instruments Other noncurrent liabilities — (1) Fixed-to-floating interest rate swap contracts Other noncurrent liabilities (30) (26) Total derivatives designated as hedging instruments 4 (19) Total derivatives $ 7 $ (19) 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 each 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 March 31, 2024, there was $17 million of collateral received and $30 million of collateral posted related to derivative instruments recorded in Other current liabilities and Other current assets , respectively. At December 31, 2023, there was $13 million of collateral received and $33 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 losses on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Foreign currency forward-exchange contracts $ (1) $ (16) 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/(losses) on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive loss , are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Forward-starting interest rate swap contracts $ 2 $ (1) Foreign exchange derivative instruments $ 16 $ (6) Gains on interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Foreign exchange derivative instruments $ 4 $ 5 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	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventories	10. Inventories The components of inventory are as follows: March 31, December 31, (MILLIONS OF DOLLARS) 2024 2023 Finished goods $ 1,120 $ 1,147 Work-in-process 1,051 966 Raw materials and supplies 480 451 Inventories $ 2,651 $ 2,564

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2024
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, 2023 $ 1,532 $ 1,227 $ 2,759 Other (a) — — — Balance, March 31, 2024 $ 1,532 $ 1,227 $ 2,759 (a) Includes adjustments for foreign currency translation. The gross goodwill balance was $3,295 million as of March 31, 2024 and December 31, 2023. Accumulated goodwill impairment losses were $536 million as of March 31, 2024 and December 31, 2023. B. Other Intangible Assets The components of identifiable intangible assets are as follows: As of March 31, 2024 As of December 31, 2023 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 $ 1,986 $ (1,139) $ 847 $ 1,986 $ (1,101) $ 885 Brands and tradenames 383 (249) 134 383 (246) 137 Other 270 (192) 78 270 (190) 80 Total finite-lived intangible assets 2,639 (1,580) 1,059 2,639 (1,537) 1,102 Indefinite-lived intangible assets: Brands and tradenames 88 — 88 88 — 88 In-process research and development 141 — 141 141 — 141 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 236 — 236 236 — 236 Identifiable intangible assets $ 2,875 $ (1,580) $ 1,295 $ 2,875 $ (1,537) $ 1,338 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 $44 million and $47 million for the three months ended March 31, 2024 and 2023, respectively.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Payments	12. Share-based Payments The Zoetis 2013 Equity and Incentive Plan, Amended and Restated as of May 19, 2022 (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 March 31, (MILLIONS OF DOLLARS) 2024 2023 Stock options / stock appreciation rights $ 3 $ 1 RSUs / DSUs 10 7 PSUs 5 1 Share-based compensation expense—total (a) $ 18 $ 9 (a) For the three months ended March 31, 2024 and 2023, we capitalized less than $1 million of share-based compensation expense to inventory. During the three months ended March 31, 2024, the company granted 265,800 stock options with a weighted-average exercise price of $196.14 per stock option and a weighted-average fair value of $51.00 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 4.06%; expected dividend yield of 0.88%; expected stock price volatility of 27.03%; and expected term of 4.1 years. Stock options granted prior to 2023 generally vest after three years of continuous service from the date of grant and have a contractual term of 10 years. Beginning in 2023, stock options granted are subject to graded vesting over three years from the date of grant and have a contractual term of 10 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 three months ended March 31, 2024, the company granted 236,220 RSUs, with a weighted-average grant date fair value of $195.91 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. RSUs granted prior to 2023 generally vest after three years of continuous service from the date of grant. Beginning in 2023, RSUs granted are subject to graded vesting over three years from the date of grant. 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 three months ended March 31, 2024, the company granted 101,099 PSUs with a weighted-average grant date fair value of $268.71 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 26.2% and 30.6%, 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	3 Months Ended
	Mar. 31, 2024
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 multi-year share repurchase program. As of March 31, 2024, there was $1.2 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 Gains/(Losses) Loss Balance, December 31, 2023 $ 85 $ 18 $ (944) $ 2 $ (839) Other comprehensive income/(loss), net of tax — 16 (18) — (2) Balance, March 31, 2024 $ 85 $ 34 $ (962) $ 2 $ (841) Balance, December 31, 2022 $ 90 $ 41 $ (944) $ (4) $ (817) Other comprehensive (loss)/income, net of tax (2) (6) (7) 4 (11) Balance, March 31, 2023 $ 88 $ 35 $ (951) $ — $ (828)

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2024
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 (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) March 31, 2024 2023 Numerator Net income before allocation to noncontrolling interests $ 599 $ 551 Less: Net loss attributable to noncontrolling interests — (1) Net income attributable to Zoetis Inc. $ 599 $ 552 Denominator Weighted-average common shares outstanding 458.0 463.5 Common stock equivalents: stock options, RSUs, PSUs and DSUs 0.8 1.1 Weighted-average common and potential dilutive shares outstanding 458.8 464.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.31 $ 1.19 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.31 $ 1.19 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 months ended March 31, 2024 and 2023.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
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. The parties have been unable to secure a start date for the Phase II testing and have confirmed with the Municipality that the earliest testing could begin is sometime after May 2024. B. Guarantees and Indemnifications

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2024
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, anti-infectives , pain and sedation, other pharmaceutical, 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 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 March 31, March 31, (MILLIONS OF DOLLARS) 2024 2023 2024 2023 U.S. Revenue $ 1,163 $ 1,005 Cost of sales 217 203 Gross profit 946 802 Gross margin 81.3 % 79.8 % Operating expenses 190 188 Other (income)/deductions-net — — U.S. Earnings 756 614 $ 24 $ 19 International Revenue (b) 1,007 978 Cost of sales 313 291 Gross profit 694 687 Gross margin 68.9 % 70.2 % Operating expenses 159 151 Other (income)/deductions-net — 1 International Earnings 535 535 23 21 Total operating segments 1,291 1,149 47 40 Other business activities (132) (114) 9 8 Reconciling Items: Corporate (288) (208) 32 32 Purchase accounting adjustments (37) (42) 37 39 Acquisition-related costs — (1) — — Certain significant items (c) (6) (22) — — Other unallocated (81) (65) 1 1 Total Earnings (d) $ 747 $ 697 $ 126 $ 120 (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 $223 million and $204 million for the three months ended March 31, 2024 and 2023, respectively. (c) For the three months ended March 31, 2024, primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. For the three months ended March 31, 2023, primarily consisted of employee termination costs related to organizational structure refinements. (d)

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Event On April 28, 2024, Zoetis and Phibro Animal Health Corporation announced that they have entered into a definitive agreement where Phibro Animal Health will acquire Zoetis’ medicated feed additive product portfolio, certain water soluble products and related assets for $350 million, subject to customary closing adjustments. This transaction is expected to be complete in the second half of 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 599	$ 552

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Kristin Peck, Chief Executive Officer, adopted a pre-arranged trading plan on February 20, 2024, that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. Ms. Peck's plan provides for (i) the sale of up to 52,000 shares of Zoetis common stock between May 21, 2024 and April 30, 2025 and (ii) the gifting of up to $300,000 worth of Zoetis common stock to a charitable fund between May 21, 2024 and April 30, 2025.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Kristin Peck [Member]
Trading Arrangements, by Individual
Name	Kristin Peck
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 20, 2024
Aggregate Available	52,000

Accounting Standards (Policies)

Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2024
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 months ended February 29, 2024 and February 28, 2023.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards	Recently Issued Accounting Standards In December 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance requires expanded annual and interim disclosures for significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. This update is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The update is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted. We are currently evaluating the impact that the new guidance will have on our notes to the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax disclosures. The new guidance requires standardized categories for the effective tax rate reconciliation, disaggregation of income taxes paid and other income tax-related disclosures. This update is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact that the new guidance will have on our notes to the consolidated financial statements.
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 Indemnifications
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, anti-infectives , pain and sedation, other pharmaceutical, 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 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)	3 Months Ended
	Mar. 31, 2024
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 March 31, (MILLIONS OF DOLLARS) 2024 2023 United States $ 1,163 $ 1,005 Australia 73 82 Brazil 101 84 Canada 61 50 Chile 31 39 China 76 102 France 41 34 Germany 51 45 Italy 28 26 Japan 37 39 Mexico 44 39 Spain 32 33 United Kingdom 77 68 Other developed markets 127 122 Other emerging markets 228 215 2,170 1,983 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000
Revenue from External Customers by Major Species	Revenue by major species Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 U.S. Companion animal $ 898 $ 721 Livestock 265 284 1,163 1,005 International Companion animal 552 504 Livestock 455 474 1,007 978 Total Companion animal 1,450 1,225 Livestock 720 758 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000
Revenue from External Customers by Species	Revenue by species Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Companion Animal: Dogs and Cats $ 1,384 $ 1,153 Horses 66 72 1,450 1,225 Livestock: Cattle 391 399 Poultry 139 139 Swine 127 142 Fish 45 49 Sheep and other 18 29 720 758 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000
Schedule of Significant Product Revenues	Revenue by major product category Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Parasiticides $ 504 $ 432 Vaccines 452 429 Dermatology 363 292 Anti-infectives 281 288 Pain and sedation 194 116 Other pharmaceutical 156 178 Animal health diagnostics 82 93 Medicated feed additives 77 87 Other non-pharmaceutical 61 68 2,170 1,983 Contract manufacturing & human health 20 17 Total Revenue $ 2,190 $ 2,000

Restructuring Charges and Oth_2

Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, (MILLIONS OF DOLLARS) 2024 2023 Restructuring charges and certain acquisition-related costs: Integration costs (a) $ — $ 1 Restructuring charges, net (b) : Employee termination costs, net 4 20 Total Restructuring charges and certain acquisition-related costs $ 4 $ 21 (a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes, as well as product transfer costs. (b) The restructuring charges for the three months ended March 31, 2024 primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. The restructuring charges for the three months ended March 31, 2023 primarily consisted of employee termination costs related to organizational structure refinements. (MILLIONS OF DOLLARS) Accrual Balance, December 31, 2023 (a) $ 35 Provision 11 Reserve adjustment (7) Utilization and other (b) (12) Balance, March 31, 2024 (a) $ 27 (a) At March 31, 2024 and December 31, 2023, included in Accrued expenses ($25 million and $26 million, respectively) and Other noncurrent liabilities ($2 million and $9 million, respectively). (b)

Other (Income)_Deductions - N_2

Other (Income)/Deductions - Net (Tables)	3 Months Ended
	Mar. 31, 2024
Other Income and Expenses [Abstract]
Components of Other (Income)/Deductions—Net	The components of Other (income)/deductions—net are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Royalty-related income (a) $ (2) $ (34) Interest income (32) (33) Foreign currency loss (b) 19 9 Other, net 7 5 Other (income)/deductions—net $ (8) $ (53) (a) For the three months ended March 31, 2023, predominantly associated with a settlement for underpayment of royalties in prior periods. (b) Primarily driven by costs related to hedging and exposures to certain emerging and developed market currencies.

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Financial Instruments [Abstract]
Schedule of Long-term Debt Instruments	The components of our long-term debt are as follows: March 31, December 31, (MILLIONS OF DOLLARS) 2024 2023 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 6,650 Unamortized debt discount / debt issuance costs (59) (60) Cumulative fair value adjustment for interest rate swap contracts (29) (26) Long-term debt, net of discount and issuance costs $ 6,562 $ 6,564
Schedule of Maturities of Long-term Debt	The following table provides the principal amount of debt outstanding, as of March 31, 2024, by scheduled maturity date: After (MILLIONS OF DOLLARS) 2024 2025 2026 2027 2028 2028 Total Maturities $ — $ 1,350 $ — $ 750 $ 500 $ 4,050 $ 6,650
Schedule of Derivative Instruments	The aggregate notional amount of derivative instruments are as follows: Notional March 31, December 31, (MILLIONS) 2024 2023 Derivatives not Designated as Hedging Instruments: Foreign currency forward-exchange contracts $ 2,194 $ 1,948 Derivatives Designated as Hedging Instruments: Foreign exchange derivative instruments (in foreign currency): Euro 650 650 Danish krone 575 600 Swiss franc 25 25 Forward-starting interest rate swaps $ 100 $ 100 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 March 31, December 31, (MILLIONS OF DOLLARS) Balance Sheet Location 2024 2023 Derivatives Not Designated as Hedging Instruments: Foreign currency forward-exchange contracts Other current assets $ 10 $ 11 Foreign currency forward-exchange contracts Other current liabilities (7) (11) Total derivatives not designated as hedging instruments $ 3 $ — Derivatives Designated as Hedging Instruments: Forward-starting interest rate swap contracts Other noncurrent assets $ 14 $ 12 Foreign exchange derivative instruments Other current assets 12 5 Foreign exchange derivative instruments Other noncurrent assets 15 11 Foreign exchange derivative instruments Other current liabilities (7) (20) Foreign exchange derivative instruments Other noncurrent liabilities — (1) Fixed-to-floating interest rate swap contracts Other noncurrent liabilities (30) (26) Total derivatives designated as hedging instruments 4 (19) Total derivatives $ 7 $ (19)
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The amounts of net losses on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net , are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Foreign currency forward-exchange contracts $ (1) $ (16)
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)	The amounts of unrecognized net gains/(losses) on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive loss , are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Forward-starting interest rate swap contracts $ 2 $ (1) Foreign exchange derivative instruments $ 16 $ (6)
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 March 31, (MILLIONS OF DOLLARS) 2024 2023 Foreign exchange derivative instruments $ 4 $ 5

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Components of Inventory	The components of inventory are as follows: March 31, December 31, (MILLIONS OF DOLLARS) 2024 2023 Finished goods $ 1,120 $ 1,147 Work-in-process 1,051 966 Raw materials and supplies 480 451 Inventories $ 2,651 $ 2,564

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2023 $ 1,532 $ 1,227 $ 2,759 Other (a) — — — Balance, March 31, 2024 $ 1,532 $ 1,227 $ 2,759 (a)
Components of Identifiable Intangible Assets	The components of identifiable intangible assets are as follows: As of March 31, 2024 As of December 31, 2023 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 $ 1,986 $ (1,139) $ 847 $ 1,986 $ (1,101) $ 885 Brands and tradenames 383 (249) 134 383 (246) 137 Other 270 (192) 78 270 (190) 80 Total finite-lived intangible assets 2,639 (1,580) 1,059 2,639 (1,537) 1,102 Indefinite-lived intangible assets: Brands and tradenames 88 — 88 88 — 88 In-process research and development 141 — 141 141 — 141 Product rights 7 — 7 7 — 7 Total indefinite-lived intangible assets 236 — 236 236 — 236 Identifiable intangible assets $ 2,875 $ (1,580) $ 1,295 $ 2,875 $ (1,537) $ 1,338

Share-Based Payments (Tables)

Share-Based Payments (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Components of Share-based Compensation Expense	The components of share-based compensation expense are as follows: Three Months Ended March 31, (MILLIONS OF DOLLARS) 2024 2023 Stock options / stock appreciation rights $ 3 $ 1 RSUs / DSUs 10 7 PSUs 5 1 Share-based compensation expense—total (a) $ 18 $ 9 (a) For the three months ended March 31, 2024 and 2023, we capitalized less than $1 million of share-based compensation expense to inventory.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2024
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 Gains/(Losses) Loss Balance, December 31, 2023 $ 85 $ 18 $ (944) $ 2 $ (839) Other comprehensive income/(loss), net of tax — 16 (18) — (2) Balance, March 31, 2024 $ 85 $ 34 $ (962) $ 2 $ (841) Balance, December 31, 2022 $ 90 $ 41 $ (944) $ (4) $ (817) Other comprehensive (loss)/income, net of tax (2) (6) (7) 4 (11) Balance, March 31, 2023 $ 88 $ 35 $ (951) $ — $ (828)

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) March 31, 2024 2023 Numerator Net income before allocation to noncontrolling interests $ 599 $ 551 Less: Net loss attributable to noncontrolling interests — (1) Net income attributable to Zoetis Inc. $ 599 $ 552 Denominator Weighted-average common shares outstanding 458.0 463.5 Common stock equivalents: stock options, RSUs, PSUs and DSUs 0.8 1.1 Weighted-average common and potential dilutive shares outstanding 458.8 464.6 Earnings per share attributable to Zoetis Inc. stockholders—basic $ 1.31 $ 1.19 Earnings per share attributable to Zoetis Inc. stockholders—diluted $ 1.31 $ 1.19

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Selected Income Statement Information by Segment	Earnings Depreciation and Amortization (a) Three Months Ended Three Months Ended March 31, March 31, (MILLIONS OF DOLLARS) 2024 2023 2024 2023 U.S. Revenue $ 1,163 $ 1,005 Cost of sales 217 203 Gross profit 946 802 Gross margin 81.3 % 79.8 % Operating expenses 190 188 Other (income)/deductions-net — — U.S. Earnings 756 614 $ 24 $ 19 International Revenue (b) 1,007 978 Cost of sales 313 291 Gross profit 694 687 Gross margin 68.9 % 70.2 % Operating expenses 159 151 Other (income)/deductions-net — 1 International Earnings 535 535 23 21 Total operating segments 1,291 1,149 47 40 Other business activities (132) (114) 9 8 Reconciling Items: Corporate (288) (208) 32 32 Purchase accounting adjustments (37) (42) 37 39 Acquisition-related costs — (1) — — Certain significant items (c) (6) (22) — — Other unallocated (81) (65) 1 1 Total Earnings (d) $ 747 $ 697 $ 126 $ 120 (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 $223 million and $204 million for the three months ended March 31, 2024 and 2023, respectively. (c) For the three months ended March 31, 2024, primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. For the three months ended March 31, 2023, primarily consisted of employee termination costs related to organizational structure refinements. (d)

Organization (Details)

Organization (Details)	Mar. 31, 2024 specie productCategory geographicRegion country
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	8
Product
Product Information [Line Items]
Number of countries in which entity markets products	100

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) product_category	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Number of major product lines | product_category	300
Contract liabilities, revenue recognized	$ 2	$ 1
Contract liabilities	$ 13		$ 11

Revenue - Revenue by Geographic

Revenue - Revenue by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 2,190	$ 2,000
United States
Revenue from External Customer [Line Items]
Revenue	1,163	1,005
Australia
Revenue from External Customer [Line Items]
Revenue	73	82
Brazil
Revenue from External Customer [Line Items]
Revenue	101	84
Canada
Revenue from External Customer [Line Items]
Revenue	61	50
Chile
Revenue from External Customer [Line Items]
Revenue	31	39
China
Revenue from External Customer [Line Items]
Revenue	76	102
France
Revenue from External Customer [Line Items]
Revenue	41	34
Germany
Revenue from External Customer [Line Items]
Revenue	51	45
Italy
Revenue from External Customer [Line Items]
Revenue	28	26
Japan
Revenue from External Customer [Line Items]
Revenue	37	39
Mexico
Revenue from External Customer [Line Items]
Revenue	44	39
Spain
Revenue from External Customer [Line Items]
Revenue	32	33
United Kingdom
Revenue from External Customer [Line Items]
Revenue	77	68
Other developed markets
Revenue from External Customer [Line Items]
Revenue	127	122
Other emerging markets
Revenue from External Customer [Line Items]
Revenue	228	215
Total geographical area
Revenue from External Customer [Line Items]
Revenue	2,170	1,983
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	$ 20	$ 17

Revenue - Revenue by Major Spec

Revenue - Revenue by Major Species (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue		$ 2,190	$ 2,000
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue		20	17
Companion animal
Revenue from External Customer [Line Items]
Revenue		1,450	1,225
Companion animal | U.S.
Revenue from External Customer [Line Items]
Revenue		898	721
Companion animal | International
Revenue from External Customer [Line Items]
Revenue		552	504
Livestock
Revenue from External Customer [Line Items]
Revenue		720	758
Livestock | U.S.
Revenue from External Customer [Line Items]
Revenue		265	284
Livestock | International
Revenue from External Customer [Line Items]
Revenue		455	474
Operating Segments | U.S.
Revenue from External Customer [Line Items]
Revenue		1,163	1,005
Operating Segments | International
Revenue from External Customer [Line Items]
Revenue	[1]	$ 1,007	$ 978
[1]Revenue denominated in euros was $223 million and $204 million for the three months ended March 31, 2024 and 2023, respectively.

Revenue - Revenue by Species (D

Revenue - Revenue by Species (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 2,190	$ 2,000
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	20	17
Dogs and Cats
Revenue from External Customer [Line Items]
Revenue	1,384	1,153
Horses
Revenue from External Customer [Line Items]
Revenue	66	72
Cattle
Revenue from External Customer [Line Items]
Revenue	391	399
Swine
Revenue from External Customer [Line Items]
Revenue	127	142
Poultry [Member]
Revenue from External Customer [Line Items]
Revenue	139	139
Fish
Revenue from External Customer [Line Items]
Revenue	45	49
Sheep and other
Revenue from External Customer [Line Items]
Revenue	18	29
Livestock
Revenue from External Customer [Line Items]
Revenue	720	758
Companion animal
Revenue from External Customer [Line Items]
Revenue	1,450	1,225
Other pharmaceutical
Revenue from External Customer [Line Items]
Revenue	$ 156	$ 178

Revenue - Revenue by Product (D

Revenue - Revenue by Product (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 2,190	$ 2,000
Contract manufacturing & human health
Revenue from External Customer [Line Items]
Revenue	20	17
Vaccines
Revenue from External Customer [Line Items]
Revenue	452	429
Parasiticides
Revenue from External Customer [Line Items]
Revenue	504	432
Anti-infectives
Revenue from External Customer [Line Items]
Revenue	281	288
Dermatology
Revenue from External Customer [Line Items]
Revenue	363	292
Other pharmaceutical
Revenue from External Customer [Line Items]
Revenue	156	178
Medicated feed additives
Revenue from External Customer [Line Items]
Revenue	77	87
Animal health diagnostics
Revenue from External Customer [Line Items]
Revenue	82	93
Other non-pharmaceutical
Revenue from External Customer [Line Items]
Revenue	61	68
Total products and services
Revenue from External Customer [Line Items]
Revenue	2,170	1,983
Pain & Sedation
Revenue from External Customer [Line Items]
Revenue	$ 194	$ 116

Acquisitions and Divestitures -

Acquisitions and Divestitures - Consideration Transferred (Details) - PetMedix Ltd. [Member] - USD ($) $ in Millions	Aug. 03, 2023	Mar. 31, 2024
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100%
Business Combination, Consideration Transferred	$ 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	12 Months Ended
	Aug. 03, 2023	Dec. 31, 2023	Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Remeasurement of retained noncontrolling investment to fair value		$ 24	$ 24
PetMedix Ltd. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Acquired from Acquisition	$ 19
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
		Mar. 31, 2024	Mar. 31, 2023		Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Asset write-offs and asset impairments		$ 2	$ 1
Total Restructuring charges and certain acquisition-related costs		4	21
Restructuring Reserve [Roll Forward]
Restructuring accrual balance	[1],[2]	35
Restructuring charges (reversals)		11
Restructuring Reserve, Accrual Adjustment		(7)
Utilization and other	[1],[3]	(12)
Restructuring accrual balance	[1],[2]	27
Other current liabilities
Restructuring Reserve [Roll Forward]
Accrued expenses		25			$ 26
Other noncurrent liabilities
Restructuring Reserve [Roll Forward]
Other noncurrent liabilities		2			$ 9
Employee Termination Costs
Restructuring Cost and Reserve [Line Items]
Severance Costs		4	20
Direct Cost
Restructuring Cost and Reserve [Line Items]
Integration costs		$ 0	$ 1	[4]
[1] 21 Accrued expenses ($25 million and $26 million, respectively) and Other noncurrent liabilities

Other (Income)_Deductions - N_3

Other (Income)/Deductions - Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other Income and Expenses [Abstract]
Royalty-related income(a)	$ (2)	$ (34)
Interest income	(32)	(33)
Foreign currency loss	19	9
Other, net	7	5
Other (income)/deductions—net	$ (8)	$ (53)

Income Taxes - Taxes on Income

Income Taxes - Taxes on Income (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate for income from continuing operations	19.80%	20.90%

Income Taxes - Deferred Taxes (

Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Noncurrent deferred tax liabilities	$ 96	$ 60
Noncurrent deferred tax assets	232	206
Noncurrent deferred tax liabilities	$ 136	$ 146

Income Taxes - Tax Contingencie

Income Taxes - Tax Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Liabilities associated with uncertain tax positions	$ 212	$ 209
Unrecognized tax benefits, income tax penalties and interest accrued	$ 29	$ 27

Financial Instruments - Credit

Financial Instruments - Credit Facilities (Details)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 60,000,000
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments:
Line of Credit Facility [Line Items]
Collateral posted	$ 30,000,000	$ 33,000,000
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 ($)	Mar. 31, 2024	Dec. 31, 2023	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	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Feb. 01, 2023	Nov. 08, 2022	Jan. 28, 2013
Debt Instrument [Line Items]
Repayments of long-term debt	$ 0	$ 1,350
Debt, principal amount	6,650		$ 6,650
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 | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Debt, principal amount				$ 1,350
Interest rate percentage	3.25%

Financial Instruments - Schedul

Financial Instruments - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Feb. 01, 2023	Nov. 08, 2022
Debt Instrument [Line Items]
Debt, principal amount	$ 6,650		$ 6,650
Unamortized debt discount / debt issuance costs	(59)		(60)
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	(29)		(26)
Long-term debt, net of discount and issuance costs	6,562		6,564
Capitalized interest	$ 8	$ 6
Senior Notes | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Interest rate percentage	3.25%
Debt, principal amount				$ 1,350
Senior Notes | 4.500% 2015 senior notes due 2025
Debt Instrument [Line Items]
Interest rate percentage	4.50%
Debt, principal amount	$ 750		750
Senior Notes | 3.000% 2017 senior notes due 2027
Debt Instrument [Line Items]
Interest rate percentage	3%
Debt, principal amount	$ 750		750
Senior Notes | 3.900% 2018 senior notes due 2028
Debt Instrument [Line Items]
Interest rate percentage	3.90%
Debt, principal amount	$ 500		500
Senior Notes | 2.000% 2020 senior notes due 2030
Debt Instrument [Line Items]
Interest rate percentage	2%
Debt, principal amount	$ 750		750
Senior Notes | 4.700% 2013 senior notes due 2043
Debt Instrument [Line Items]
Interest rate percentage	4.70%
Debt, principal amount	$ 1,150		1,150
Senior Notes | 3.950% 2017 senior notes due 2047
Debt Instrument [Line Items]
Interest rate percentage	3.95%
Debt, principal amount	$ 500		500
Senior Notes | 4.450% 2018 senior notes due 2048
Debt Instrument [Line Items]
Interest rate percentage	4.45%
Debt, principal amount	$ 400		400
Senior Notes | 3.000% 2020 senior notes due 2050
Debt Instrument [Line Items]
Interest rate percentage	3%
Debt, principal amount	$ 500		500
Senior Notes | 5.400% Senior Notes Due 2025
Debt Instrument [Line Items]
Interest rate percentage					5.40%
Debt, principal amount	600		600
Senior Notes | 5.600% Senior Notes Due 2032
Debt Instrument [Line Items]
Interest rate percentage					5.60%
Debt, principal amount	$ 750		$ 750

Financial Instruments - Fair Va

Financial Instruments - Fair Value of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Short-Term Debt
Debt Instrument [Line Items]
Short-term borrowings	$ 21	$ 21
Senior Notes | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value, debt instrument	$ 6,156	$ 6,319

Financial Instruments - Long-te

Financial Instruments - Long-term Debt Maturity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financial Instruments [Abstract]
2024	$ 0
2025	1,350,000,000
2026	0
2027	750,000,000
2028	500,000,000
After 2025	4,050,000,000
Total long-term debt	6,650,000,000		$ 6,650,000,000
Interest expense, net of capitalized interest	58,000,000	$ 63,000,000
Capitalized interest	8,000,000	$ 6,000,000
Line Of Credit For General Corporate Purpose
Line of Credit Facility [Line Items]
Line of credit facility	$ 3,000,000		$ 3,000,000

Financial Instruments - Foreign

Financial Instruments - Foreign Exchange Risk (Details)	3 Months Ended
	Mar. 31, 2024
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)	4 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	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	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	$ 100
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 | Senior Notes Due 2023 [Member]
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	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Mar. 31, 2024 DKK (kr)	Mar. 31, 2024 CHF (SFr)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 DKK (kr)	Dec. 31, 2023 CHF (SFr)
Foreign exchange derivative instruments
Derivative [Line Items]
Derivative notional amount	$ 250	€ 650	kr 575	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	2,194				1,948
Derivatives Designated as Hedging Instruments: | Forward-starting interest rate swaps
Derivative [Line Items]
Derivative notional amount	$ 100				$ 100

Financial Instruments - Fair _2

Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Total derivatives	$ 7		$ (19)
Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Total derivatives	4		(19)
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Total derivatives	3		0
Foreign currency forward-exchange contracts	(1)	$ (16)
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	10		11
Foreign currency forward-exchange contracts | Derivatives Not Designated as Hedging Instruments: | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	(7)		(11)
Forward-starting interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	14		12
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Collateral received	17
Collateral posted	30		33
Additional Collateral, Aggregate Fair Value			13
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other current assets
Derivatives, Fair Value [Line Items]
Derivative assets	12		5
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	7		20
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other noncurrent assets
Derivatives, Fair Value [Line Items]
Derivative assets	15		11
Foreign exchange derivative instruments | Derivatives Designated as Hedging Instruments: | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	0		1
Fixed-to-floating interest rate swap contracts | Derivatives Designated as Hedging Instruments: | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Derivative assets	$ (30)		$ (26)

Financial Instruments Cross-cur

Financial Instruments Cross-currency forward-exchange contracts (Details) - Derivatives Designated as Hedging Instruments: - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Forward-starting interest rate swap contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gains/(losses) on derivatives for net investment hedges, net of tax of $5 and $(2) for the three months ended March 31, 2024 and 2023, respectively	$ 2	$ (1)
Foreign exchange derivative instruments
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gains/(losses) on derivatives for net investment hedges, net of tax of $5 and $(2) for the three months ended March 31, 2024 and 2023, respectively	$ 16	$ (6)

Financial Instruments Cross-c_2

Financial Instruments Cross-currency interest rate swap contracts (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
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	$ 5

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 1,120	$ 1,147
Work-in-process	1,051	966
Raw materials and supplies	480	451
Inventories	$ 2,651	$ 2,564

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 2,759
Other	0	[1]
Ending Balance	2,759
United States (U.S.)
Goodwill [Roll Forward]
Beginning Balance	1,532
Other	0	[1]
Ending Balance	1,532
International
Goodwill [Roll Forward]
Beginning Balance	1,227
Other	0	[1]
Ending Balance	$ 1,227
[1] Includes adjustments for foreign currency translation.

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Gross goodwill	$ 3,295		$ 3,295
Accumulated goodwill impairment losses	536		$ 536
Amortization of intangible assets	$ 44	$ 47

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 2,639	$ 2,639
Finite-lived intangible assets, accumulated amortization	(1,580)	(1,537)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	1,059	1,102
Total indefinite-lived intangible assets	236	236
Intangible Assets, gross carrying amount	2,875	2,875
Identifiable intangible assets, less accumulated amortization	1,295	1,338
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	88	88
In-process research and development
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	141	141
Product rights
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	7	7
Developed technology rights
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	1,986	1,986
Finite-lived intangible assets, accumulated amortization	(1,139)	(1,101)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	847	885
Brands and tradenames
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	383	383
Finite-lived intangible assets, accumulated amortization	(249)	(246)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	134	137
Other
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	270	270
Finite-lived intangible assets, accumulated amortization	(192)	(190)
Finite-lived intangible assets, identifiable intangible assets, less accumulated amortization	$ 78	$ 80

Share-Based Payments - Narrativ

Share-Based Payments - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, options granted, shares | shares	265,800
Share-based compensation, weighted average exercise price (in dollars per share)	$ 196.14
Share-based compensation, Options, weighted average grant date fair value (in dollars per share)	$ 51
Share-based compensation, risk free interest rate	4.06%
Share-based compensation, expected dividend rate	0.88%
Share-based compensation, expected volatility rate	27.03%
Share-based compensation, expected term	4 years 1 month 6 days
Stock options
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, Expiration Period	10 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Graded Vesting Period	3 years
Share-based compensation, granted, shares | shares	236,220
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 195.91
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	26.20%
Share-based compensation, award vesting period	3 years
Share-based compensation, granted, shares | shares	101,099
Share-based compensation, weighted average grant date fair value (in dollars per share)	$ 268.71
Performance Shares | PeerCompanies
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, expected volatility rate	30.60%
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
		Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct	[1]	$ 18	$ 9
Stock options / stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		3	1
RSUs / DSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		10	7
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense—direct		$ 5	$ 1
[1]For the three months ended March 31, 2024 and 2023, 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 ($)	Mar. 31, 2024	Dec. 31, 2022
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	1,200,000,000
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
	Mar. 31, 2024	Mar. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 4,991	$ 4,403
Other comprehensive income/(loss), net of tax	(2)	(11)
Ending balance	5,052	4,491
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(839)	(817)
Other comprehensive income/(loss), net of tax	(2)	(11)
Ending balance	(841)	(828)
Derivatives Net Unrealized Gains/ (Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	85	90
Other comprehensive income/(loss), net of tax	0	(2)
Ending balance	85	88
Net Investment Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	18	41
Other comprehensive income/(loss), net of tax	16	(6)
Ending balance	34	35
Currency Translation Adjustment Net Unrealized Gain/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(944)	(944)
Other comprehensive income/(loss), net of tax	(18)	(7)
Ending balance	(962)	(951)
Benefit Plans Actuarial Gains/(Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	2	(4)
Other comprehensive income/(loss), net of tax	0	4
Ending balance	$ 2	$ 0

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator
Net income before allocation to noncontrolling interests	$ 599	$ 551
Less: Net loss attributable to noncontrolling interests	0	(1)
Net income attributable to Zoetis Inc.	$ 599	$ 552
Denominator
Weighted-average common shares outstanding	458,000,000	463,500,000
Common stock equivalents: stock options, RSUs, PSUs and DSUs	800,000	1,100,000
Weighted-average common and potential dilutive shares outstanding	458,800,000	464,600,000
Earnings per share attributable to Zoetis stockholders—basic (in dollars per share)	$ 1.31	$ 1.19
Earnings per share attributable to Zoetis stockholders—diluted (in dollars per share)	$ 1.31	$ 1.19
Antidilutive securities excluded from computation of earnings per share, amount	0	0

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions		1 Months Ended
	Aug. 03, 2023 USD ($)	Apr. 30, 2012	Feb. 29, 2012 defendant
PetMedix Ltd. [Member]
Loss Contingencies [Line Items]
Cash Acquired from Acquisition | $	$ 19
Ulianopolis, Brazil
Loss Contingencies [Line Items]
Number of additional defendants			5
Number of claims seeking damages			6
Duration of suspension of lawsuit		1 year

Segment Information (Details)

Segment Information (Details)	3 Months Ended
	Mar. 31, 2024 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
		Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenue		$ 2,190	$ 2,000
Cost of sales		643	588
Other (income)/deductions—net		(8)	(53)
Income before provision for taxes on income	[1]	747	697
Depreciation and amortization	[1],[2]	126	120
Other business activities
Segment Reporting Information [Line Items]
Income before provision for taxes on income		(132)	(114)
Depreciation and amortization	[2]	9	8
Operating Segments
Segment Reporting Information [Line Items]
Income before provision for taxes on income		1,291	1,149
Depreciation and amortization	[2]	47	40
Operating Segments | U.S.
Segment Reporting Information [Line Items]
Revenue		1,163	1,005
Cost of sales		217	203
Gross profit		$ 946	$ 802
Gross margin, percentage		81.30%	79.80%
Operating expenses		$ 190	$ 188
Other (income)/deductions—net		0	0
Income before provision for taxes on income		756	614
Depreciation and amortization	[2]	24	19
Operating Segments | International
Segment Reporting Information [Line Items]
Revenue	[3]	1,007	978
Cost of sales		313	291
Gross profit		$ 694	$ 687
Gross margin, percentage		68.90%	70.20%
Operating expenses		$ 159	$ 151
Other (income)/deductions—net		0	1
Income before provision for taxes on income		535	535
Depreciation and amortization	[2]	23	21
Corporate
Segment Reporting Information [Line Items]
Income before provision for taxes on income		(288)	(208)
Depreciation and amortization	[2]	32	32
Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization	[2]	0	0
Purchase accounting adjustments		(37)	(42)
Purchase accounting adjustments, Depreciation and Amortization	[2]	37	39
Acquisition-related costs		0	(1)
Certain significant items, Earnings	[4]	(6)	(22)
Certain significant items, Depreciation and Amortization	[2],[4]	0	0
Other unallocated		(81)	(65)
Other Unallocated, Depreciation and Amortization	[2]	$ 1	$ 1
[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 $223 million and $204 million for the three months ended March 31, 2024 and 2023, respectively.[4] For the three months ended March 31, 2023, primarily consisted of employee termination costs related to organizational structure refinements.

Segment Information Selected _2

Segment Information Selected Statement of Income Narrative (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenue		$ 2,190	$ 2,000
International | Operating Segments
Segment Reporting Information [Line Items]
Revenue	[1]	1,007	978
International | Operating Segments | Euro Member Countries, Euro
Segment Reporting Information [Line Items]
Revenue		$ 223	$ 204
[1]Revenue denominated in euros was $223 million and $204 million for the three months ended March 31, 2024 and 2023, respectively.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Apr. 28, 2024
Subsequent Event [Line Items]
Subsequent Events	17. Subsequent Event On April 28, 2024, Zoetis and Phibro Animal Health Corporation announced that they have entered into a definitive agreement where Phibro Animal Health will acquire Zoetis’ medicated feed additive product portfolio, certain water soluble products and related assets for $350 million, subject to customary closing adjustments. This transaction is expected to be complete in the second half of 2024.
Subsequent Event
Subsequent Event [Line Items]
Products and assets to sell agreement amount		$ 350