Elanco Animal Health (ELAN) 10-K 1 Mar 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2022	Feb. 24, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-38661
Entity Registrant Name	Elanco Animal Health Inc
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	82-5497352
Entity Address, Address Line One	2500 INNOVATION WAY
Entity Address, City or Town	GREENFIELD
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46140
City Area Code	877
Local Phone Number	352-6261
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	ELAN
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 9.3
Entity Common Stock, Shares Outstanding (in shares)		491,543,501
Documents Incorporated by Reference	Portions of the registrant's definitive proxy materials for its 2023 Annual Meeting of Shareholders are incorporated by reference into Part III hereof.
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Central Index Key	0001739104

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Ernst & Young LLP
Auditor Location	Indianapolis, Indiana
Auditor Firm ID	42

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 4,411	$ 4,764	$ 3,271
Costs, expenses and other:
Cost of sales	1,913	2,132	1,667
Research and development	321	369	329
Marketing, selling and administrative	1,265	1,403	997
Amortization of intangible assets	528	556	360
Asset impairment, restructuring and other special charges	183	634	623
Interest expense, net of capitalized interest	241	236	150
Other (income) expense, net	32	5	(178)
Costs, expenses and other	4,483	5,335	3,948
Loss before income taxes	(72)	(571)	(677)
Income tax expense (benefit)	6	(88)	(103)
Net loss	$ (78)	$ (483)	$ (574)
Loss per share:
Basic (usd per share)	$ (0.16)	$ (0.99)	$ (1.30)
Diluted (usd per share)	$ (0.16)	$ (0.99)	$ (1.30)
Weighted average shares outstanding:
Basic (in shares)	488.3	487.2	441.4
Diluted (in shares)	488.3	487.2	441.4

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (78)	$ (483)	$ (574)
Other comprehensive income (loss):
Cash flow hedges, net of taxes	157	86	(61)
Foreign currency translation	(419)	(613)	558
Defined benefit pension and retiree health benefit plans, net of taxes	79	15	(21)
Other comprehensive income (loss), net of taxes	(183)	(512)	476
Comprehensive loss	$ (261)	$ (995)	$ (98)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 345	$ 638
Accounts receivable, net of allowances of $13 (2022) and $12 (2021)	797	833
Other receivables	205	195
Inventories	1,538	1,371
Prepaid expenses and other	394	237
Total current assets	3,279	3,274
Noncurrent Assets
Goodwill	5,993	6,172
Other intangibles, net	4,842	5,587
Other noncurrent assets	378	390
Property and equipment, net	999	1,055
Total assets	15,491	16,478
Current Liabilities
Accounts payable	390	416
Employee compensation	146	185
Sales rebates and discounts	324	319
Current portion of long-term debt	388	294
Other current liabilities	454	433
Total current liabilities	1,702	1,647
Noncurrent Liabilities
Long-term debt	5,448	6,025
Accrued retirement benefits	161	271
Deferred taxes	662	765
Other noncurrent liabilities	229	262
Total liabilities	8,202	8,970
Commitments and Contingencies
Equity
Preferred stock, 1,000,000,000 shares authorized, no par value; none issued	0	0
Common stock, 5,000,000,000 shares authorized, no par value; 474,237,738 and 473,119,786 shares issued and outstanding as of December 31, 2022 and 2021, respectively	0	0
Additional paid-in capital	8,738	8,696
Accumulated deficit	(1,057)	(979)
Accumulated other comprehensive loss	(392)	(209)
Total equity	7,289	7,508
Total liabilities and equity	$ 15,491	$ 16,478

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, net of allowances	$ 13	$ 12
Preferred stock authorized (in shares)	1,000,000,000	1,000,000,000
Preferred stock issued (in shares)	0	0
Common stock authorized (in shares)	5,000,000,000	5,000,000,000
Common stock issued (in shares)	474,237,738	473,119,786
Common stock outstanding (in shares)	474,237,738	473,119,786

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Millions		Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Cash Flow Hedge	Foreign Currency Translation	Defined Benefit Pension and Retiree Health Benefit Plans	Total	Total Cumulative Effect, Period of Adoption, Adjustment
Balance at beginning of period (in shares) at Dec. 31, 2019				373,000,000
Balance at beginning of period at Dec. 31, 2019		$ 5,543	$ (1)	$ 0	$ 5,637	$ 79	$ (1)	$ 0	$ (198)	$ 25	$ (173)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(574)			0	(574)
Other comprehensive income (loss), net of tax		476						(61)	558	(21)	476
Separation activities	[1]	38			38
Stock-based compensation		47			47	0
Issuance of stock under employee stock plans, net (in shares)				1,000,000
Issuance of stock under employee stock plans, net		(15)			(15)
Issuance of common stock and tangible equity units, net of issuance costs (in shares)				25,000,000
Issuance of common stock and tangible equity units, net of issuance costs		1,220			1,220
Issuance of stock to Bayer for acquisition, net of issuance costs (in shares)				72,900,000
Issuance of stock to Bayer for acquisition, net of issuance costs		1,723			1,723
Balance at end of period (in shares) at Dec. 31, 2020				471,900,000
Balance at end of period at Dec. 31, 2020		8,457		$ 0	8,650	(496)		(61)	360	4	303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(483)			0	(483)
Other comprehensive income (loss), net of tax		(512)						86	(613)	15	(512)
Stock-based compensation		66			66
Issuance of stock under employee stock plans, net (in shares)				1,200,000
Issuance of stock under employee stock plans, net		$ (20)			(20)
Balance at end of period (in shares) at Dec. 31, 2021		473,119,786		473,100,000
Balance at end of period at Dec. 31, 2021		$ 7,508		$ 0	8,696	(979)		25	(253)	19	(209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		(78)				(78)
Other comprehensive income (loss), net of tax		(183)						157	(419)	79	(183)
Stock-based compensation		58			58
Issuance of stock under employee stock plans, net (in shares)				1,000,000
Issuance of stock under employee stock plans, net		(17)			(17)
Issuance of stock under employee stock purchase plan (in shares)				100,000
Issuance of stock under employee stock purchase plan		$ 1			1
Balance at end of period (in shares) at Dec. 31, 2022		474,237,738		474,200,000
Balance at end of period at Dec. 31, 2022		$ 7,289		$ 0	$ 8,738	$ (1,057)		$ 182	$ (672)	$ 98	$ (392)
[1]Represent amounts associated with transactions between us and Lilly, related primarily to the completion of the local country asset purchases, the finalization of assets and liabilities associated with the legal separation from Lilly, centralized cash management, and resulting impacts on deferred tax assets, that occurred subsequent to our initial public offering.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities
Net income (loss)	$ (78)	$ (483)	$ (574)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	682	716	517
Deferred income taxes	(57)	(148)	(114)
Stock-based compensation expense	59	66	47
Asset impairment and write-down charges	81	345	25
Loss (gain) on sale of assets	5	4	(51)
Loss (gain) on divestitures	(3)	1	(170)
Inventory fair value step-up amortization	0	64	90
Loss on extinguishment of debt	20	0	3
Proceeds from interest rate swap settlements	207	0	0
Other non-cash operating activities, net	(2)	6	17
Other changes in operating assets and liabilities, net of acquisitions and divestitures:
Receivables	14	(35)	24
Inventories	(269)	29	(95)
Other assets	(109)	25	(122)
Accounts payable and other liabilities	(98)	(116)	362
Other changes in operating assets and liabilities	0	9	0
Net Cash Provided by (Used for) Operating Activities	452	483	(41)
Cash Flows from Investing Activities
Purchases of property and equipment	(137)	(126)	(135)
Disposals of property and equipment	0	17	72
Purchases of software	(34)	(33)	(176)
Purchases of intangible assets	(13)	(38)	0
Cash paid for acquisitions, net of cash acquired	0	(342)	(5,001)
Divestiture proceeds	13	0	435
Other investing activities, net	(8)	(8)	26
Net Cash Used for Investing Activities	(179)	(530)	(4,779)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt	425	500	4,804
Proceeds from revolving credit facility	563	500	0
Repayments of long-term borrowings	(677)	(573)	(952)
Repayments of revolving credit facility	(813)	(250)	0
Proceeds from issuance of common stock and tangible equity units	0	0	1,220
Debt issuance costs	(2)	(2)	(102)
Early redemption and tender premiums paid	(14)	0	0
Funding related to construction of corporate headquarters	(15)	64	0
Other financing activities, net	(16)	(29)	(16)
Net Cash Provided by (Used for) Financing Activities	(549)	210	4,954
Effect of exchange rate changes on cash and cash equivalents	(17)	(31)	27
Net increase (decrease) in cash, cash equivalents and restricted cash	(293)	132	161
Cash, cash equivalents and restricted cash at January 1	638	506	345
Cash, cash equivalents and restricted cash at December 31	$ 345	$ 638	$ 506

Background

Background	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background	Background Elanco is a global animal health company that innovates, develops, manufactures and markets products for pets and farm animals. We offer a portfolio of approximately 200 brands to pet owners, veterinarians and farm animal producers in more than 90 countries. Our products are generally sold worldwide directly to wholesalers, distributors, and independent retailers. Certain products are also sold directly to farm animal producers and veterinarians. We have a diversified business of products across species consisting of: dogs and cats (collectively, pet health) and cattle, poultry, swine and aqua (collectively, farm animal). Elanco was incorporated in Indiana on September 18, 2018, and prior to that was a business unit of Lilly. On August 1, 2020 and August 27, 2021, we completed the acquisitions of Bayer Animal Health and KindredBio, respectively. See Note 6: Acquisitions, Divestitures and Other Arrangements for additional information.

Revision of Previously Issued C

Revision of Previously Issued Consolidated Financial Statements	12 Months Ended
	Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]
Revision of Previously Issued Consolidated Financial Statements	Revision of Previously Issued Consolidated Financial Statements In connection with the preparation of our financial statements as of and for the year ended December 31, 2022, a cumulative error was identified relating to the valuation allowance for taxes for a Southeast Asia affiliate. While immaterial to prior years, correcting this cumulative error in 2022 would have caused the 2022 financial statements to be materially misstated. The cumulative impact related to the Southeast Asia tax matter was a $20 million increase in income tax expense, of which $14 million and $6 million related to 2021 and 2020, respectively. In conjunction with making these corrections, we made other adjustments to the prior years to revise uncorrected errors. These corrections resulted in a $4 million cumulative adjustment to equity as of January 1, 2020. In accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality , and Accounting Standards Codification (ASC) 250, Accounting Changes and Error Corrections , we assessed the materiality of these corrections and concluded that they were not material, individually or in the aggregate, to our prior period consolidated financial statements. Therefore, amendments of previously filed reports are not required. The following tables represent revisions to our consolidated statements of operations, consolidated statements of equity and consolidated statements of cash flows for the years ended December 31, 2021 and 2020, as well as revisions to our consolidated balance sheet as of December 31, 2021, in accordance with ASC 250. The revisions to our consolidated statements of comprehensive loss were limited to the net loss revisions outlined below. We have also updated all accompanying notes and disclosures impacted by the revisions. The tables below include only those line items that include revisions to previously reported amounts. Revisions to our unaudited interim consolidated financial statements for the affected prior periods are disclosed in Note 21: Selected Quarterly Data. Consolidated Statements of Operations Year Ended December 31, 2021 Year Ended December 31, 2020 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 4,765 $ (1) $ 4,764 $ 3,273 $ (2) $ 3,271 Cost of sales 2,134 (2) 2,132 1,667 — 1,667 Research and development 369 — 369 327 2 329 Marketing, selling and administrative 1,404 (1) 1,403 996 1 997 Asset impairment, restructuring and other special charges 628 6 634 623 — 623 Loss before income taxes (567) (4) (571) (672) (5) (677) Income tax benefit (95) 7 (88) (112) 9 (103) Net loss (472) (11) (483) (560) (14) (574) Loss per share: Basic $ (0.97) $ (0.02) $ (0.99) $ (1.27) $ (0.03) $ (1.30) Diluted $ (0.97) $ (0.02) $ (0.99) $ (1.27) $ (0.03) $ (1.30) Weighted average shares outstanding: Basic 487.2 487.2 487.2 441.4 441.4 441.4 Diluted 487.2 487.2 487.2 441.4 441.4 441.4 Consolidated Balance Sheet December 31, 2021 As Reported Revisions As Revised Inventories $ 1,373 $ (2) $ 1,371 Total current assets 3,276 (2) 3,274 Other noncurrent assets 387 3 390 Property and equipment, net 1,061 (6) 1,055 Total assets 16,483 (5) 16,478 Accounts payable 418 (2) 416 Sales rebates and discounts 316 3 319 Other current liabilities 430 3 433 Total current liabilities 1,643 4 1,647 Deferred taxes 745 20 765 Other noncurrent liabilities 261 1 262 Total liabilities 8,945 25 8,970 Accumulated deficit (949) (30) (979) Total equity 7,538 (30) 7,508 Total liabilities and equity 16,483 (5) 16,478 Consolidated Statements of Equity Additional Paid-In Capital Retained Earnings (Accumulated Deficit) As Reported Revisions As Revised As Reported Revisions As Revised December 31, 2019 $ 5,636 $ 1 $ 5,637 $ 84 $ (5) $ 79 Net loss — — — (560) (14) (574) Stock-based compensation 48 (1) 47 — — — December 31, 2020 8,650 — 8,650 (477) (19) (496) Net loss — — — (472) (11) (483) December 31, 2021 8,696 — 8,696 (949) (30) (979) Consolidated Statements of Cash Flows December 31, 2021 December 31, 2020 As Reported Revisions As Revised As Reported Revisions As Revised Net loss $ (472) $ (11) $ (483) $ (560) $ (14) $ (574) Deferred income taxes (154) 6 (148) (125) 11 (114) Stock-based compensation expense 66 — 66 48 (1) 47 Asset impairment and write-down charges 339 6 345 25 — 25 Receivables (25) (10) (35) 14 10 24 Inventories 27 2 29 (95) — (95) Other assets 22 3 25 (123) 1 (122) Accounts payable and other liabilities (120) 4 (116) 369 (7) 362

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation We have prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States (GAAP). In our opinion, the financial statements reflect all adjustments (including those that are normal and recurring) that are necessary for fair presentation of the results of operations for the periods shown. All intercompany balances and transactions have been eliminated. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. We issued our financial statements by filing with the Securities and Exchange Commission and have evaluated subsequent events up to the time of the filing.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Revenue We recognize revenue primarily from product sales to customers. Revenue from sales of products is recognized at the point where the customer obtains control of the goods and we satisfy our performance obligation, which is generally once the goods have shipped and the customer has assumed title. Payment terms differ by jurisdiction and customer, but payment terms in most of our major jurisdictions typically range from 30 to 120 days from date of shipment. Revenue for our product sales has not been adjusted for the effects of a financing component as we expect, at contract inception, that the period between when we transfer control of the product and when we receive payment will be one year or less. Any exceptions are either not material or we collect interest for payments made after the due date. For contract manufacturing organization (CMO) arrangements, we recognize revenue over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or service. Revenue is recognized over time when we are creating or enhancing an asset that the customer controls. In this instance, revenue is recognized as the asset is created or enhanced or our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed. Provisions for rebates and discounts, as well as returns are established in the same period the related sales are recognized. We generally ship product shortly after orders are received; therefore, we generally only have a few days of orders received but not yet shipped at the end of any reporting period. Shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are imposed on our sales of product and collected from a customer. Significant judgments must be made in determining the transaction price for sales of products related to anticipated rebates, discounts and returns. The following describe the most significant of these judgments: Sales Rebates and Discounts - Background and Uncertainties • Many of our products are sold to wholesale distributors. We initially invoice our customers contractual list prices. Contracts with direct and indirect customers may provide for various rebates and discounts that may differ in each contract. As a consequence, to determine the appropriate transaction price for our product sales at the time we recognize a sale to a direct customer, we must estimate any rebates or discounts that ultimately will be due to the direct customer and other customers in the distribution chain under the terms of our contracts. Judgments are required in making these estimates. • The rebate and discount amounts are recorded as a deduction to arrive at our net product sales. We estimate these accruals using an expected value approach. • In determining the appropriate accrual amount, we consider our historical experience with similar incentives programs and current sales data and estimates of inventory levels at our channel distributors to evaluate the impact of such programs on revenue and continually monitor the impact of this experience and adjust as necessary. Although we accrue a liability for rebates related to these programs at the time the sale is recorded, the rebate related to that sale is typically paid up to six months after the rebate or incentive period expires. Because of this time lag, in any particular period rebate adjustments may incorporate revisions of accruals for several periods. Sales Returns - Background and Uncertainties • We estimate a reserve for future product returns related to product sales using an expected value approach. This estimate is based on several factors, including: local returns policies and practices; returns as a percentage of revenue; an understanding of the reasons for past returns; estimated shelf life by product; and estimates of the amount of time between shipment and return. Adjustments to the returns reserve have been and may in the future be required based on revised estimates to our assumptions, which would have an impact on our consolidated results of operations. Reserves for sales returns are recorded concurrently with revenue recognition as a deduction to arrive at our net product sales and a liability. Research and Development Expenses Research and development expenses include the following: • Research and development costs, which are expensed as incurred; and • Milestone payment obligations incurred prior to regulatory approval of the product, which are accrued when the event requiring payment of the milestone occurs. Goodwill and Intangible Assets We have historically performed our annual goodwill and indefinite-lived intangible asset impairment assessment as of the last day of the fourth fiscal quarter of each year. During the fourth quarter of 2022, we elected to change the date of our annual impairment assessment from December 31 st to October 1 st . The change was made to more closely align the impairment assessment date with our annual planning and budgeting process as well as our long-term planning and forecasting process. We have determined that this change in accounting principle is preferable and will not affect the consolidated financial statements. Pursuant to this change in accounting principle, in 2022 we performed an impairment assessment as of the first day of our fourth fiscal quarter. The change in impairment assessment date did not delay or avoid an impairment charge. This change was not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change has been applied prospectively. See Note 12: Goodwill and Intangibles for further accounting policy information. Advertising Expenses Costs associated with advertising are generally expensed as incurred and are included in marketing, selling and administrative expenses in the consolidated statements of operations. The costs of TV, radio, and other electronic media and publications are expensed when the related advertising occurs. Advertising and promotion expenses totaled approximately $201 million and $248 million in 2022 and 2021, respectively. Expenses increased significantly in 2021 as compared to prior years due to the 2020 acquisition of Bayer Animal Health. Foreign Currency Translation Operations in our subsidiaries outside the U.S. are recorded in the functional currency of each subsidiary which is determined by a review of the environment where each subsidiary primarily generates and expends cash. The results of operations for our subsidiaries outside the U.S., where the U.S. dollar is not the functional currency, are translated from functional currencies into U.S. dollars using the weighted average currency rate for the period. Assets and liabilities are translated using the period end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries are recorded in other comprehensive income (loss). Other Significant Accounting Policies Our other significant accounting policies are described in the remaining appropriate notes to the consolidated financial statements. Implementation of New Financial Accounting Pronouncements The following table provides a brief description of an accounting standard that was effective January 1, 2022 and was adopted on that date: Standard Description Effect on the financial statements or other significant matters ASU 2021-10, Government Assistance (Topic 832) The amendments in this update require annual disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature, terms and conditions associated with the transactions and the financial statement line items affected. The adoption of this guidance did not have a material impact on our consolidated financial statements. The following table provides a brief description of an accounting standard applicable to us that has not yet been adopted: Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2020-04, Reference rate reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting; ASU 2021-01, Reference Rate Reform (Topic 848): Scope; ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2021-01 clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions. ASU 2022-06 extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. Adoption of the guidance is optional and effective as of March 12, 2020 through December 31, 2024. Adoption is permitted at any time during the period on a prospective basis. Our current credit facilities reference London Inter-Bank Offered Rate (LIBOR) as a benchmark rate. The underlying credit agreements include provisions which outline criteria for establishing a consistent replacement benchmark rate in the event that LIBOR is discontinued. Therefore, it is unlikely that we will need to adopt this optional guidance. However, we will continue to evaluate the impact as reference rate reform activities occur.

Revenue

Revenue	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Our sales rebates and discounts are based on specific agreements. The most significant of our sales rebate and discount programs in terms of accrual and payment amounts, percentage of our products that are sold via these programs, and level of judgment required in estimating the appropriate transaction price, relate to our programs in the U.S., France and the U.K. As of December 31, 2022 and 2021, the aggregate liability for sales rebates and discounts for these countries represented approximately 77% and 74%, respectively, of our total liability. The following table summarizes the activity in our global sales rebates liability: Year Ended December 31, 2022 2021 Beginning balance $ 319 $ 297 Reduction of revenue 682 674 Payments (662) (645) Foreign currency translation adjustments (15) (7) Ending balance $ 324 $ 319 Adjustments to revenue recognized as a result of changes in estimates for the judgments described above during the years ended December 31, 2022, 2021 and 2020 for product shipped in previous periods were not material. Actual global product returns were approximately 1% of net revenue for the years ended December 31, 2022, 2021 and 2020. Disaggregation of Revenue The following table summarizes our revenue disaggregated by product category: 2022 2021 Pet Health $ 2,138 $ 2,350 Farm Animal: Cattle 944 980 Poultry 716 744 Swine 384 464 Aqua 175 144 Total Farm Animal 2,219 2,332 Contract Manufacturing (1) 54 82 Revenue $ 4,411 $ 4,764 (1) Represents revenue from arrangements in which we manufacture products on behalf of a third party, including supply agreements associated with divestitures of products related to the acquisition of Bayer Animal Health Pet Health, Farm Animal and Contract Manufacturing revenues were $1,356 million, $1,835 million and $80 million, respectively, for the year ended December 31, 2020. Further disaggregation of revenue is not available due to data limitations caused by our acquisition of Bayer Animal Health during that period. While we are able to accumulate certain Farm Animal species revenue in 2020 for internal reporting purposes, it requires significant estimations and assumptions, some of which rely on data that is neither reproducible nor validated through accepted control mechanisms. Therefore, we do not have sufficiently reliable data to disclose Farm Animal revenue by species in 2020.

Acquisitions, Divestitures and

Acquisitions, Divestitures and Other Arrangements	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Divestitures and Other Arrangements	Acquisitions, Divestitures and Other Arrangements During 2021 and 2020, we completed the acquisitions of KindredBio and Bayer Animal Health, respectively. These transactions were accounted for as business combinations under the acquisition method of accounting. The acquisition method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. The determination of estimated fair value requires management to make significant estimates and assumptions. The excess of the purchase price over the fair value of the acquired net assets, where applicable, has been recorded as goodwill. The results of operations of these acquisitions are included in the consolidated financial statements from the dates of acquisition. KindredBio Acquisition On August 27, 2021, we acquired KindredBio, a publicly traded biopharmaceutical company that developed innovative biologics focused on saving and improving the lives of pets. The acquisition further accelerates our pet health expansion, particularly by expanding our presence in dermatology. In connection with the merger agreement, we acquired all outstanding stock of KindredBio for $9.25 per share, or an aggregate cash purchase consideration of $444 million. We utilized our revolving credit facility and cash on hand to finance the acquisition. In May 2021, we signed an agreement with KindredBio to acquire exclusive global rights to KIND-030, a monoclonal antibody that is being developed for the treatment and prevention of canine parvovirus. We calculated the fair value of the liability associated with that agreement using an income approach leveraging the estimated sales royalty, sales milestone and technical milestone payments avoided, and settled the $29 million liability upon the closing of our acquisition of KindredBio. Refer to Note 7: Asset Impairment, Restructuring and Other Special Charges for further discussion. We incurred transaction costs in connection with the KindredBio acquisition of $6 million during the year ended December 31, 2021. Transaction costs were primarily associated with legal and other professional services related to the acquisition and are reflected within asset impairment, restructuring and other special charges in the consolidated statements of operations. Revenue and loss from KindredBio included in the consolidated statements of operations since the date of acquisition were immaterial. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at August 27, 2021 Cash and cash equivalents $ 31 Other net working capital 13 Property and equipment 33 Intangible assets, primarily acquired in-process research and development (IPR&D) 333 Deferred income taxes, net (30) Total identifiable net assets 380 Goodwill 35 Settlement of liability related to previous license agreement 29 Total consideration transferred $ 444 The valuation of assets acquired and liabilities assumed was finalized during the third quarter of 2022. The measurement period adjustments recorded in 2022 and 2021, which were made to reflect the facts and circumstances in existence as of the acquisition date, primarily related to the finalization of our fair value assessment of property and equipment, changes in the estimated fair value of acquired IPR&D and minor tax and working capital adjustments. The net impact of these adjustments was not material. Property and equipment is mostly comprised of land, buildings, equipment (including laboratory equipment, furniture and fixtures, and computer equipment), and construction in progress. The estimated fair value of real and personal property was determined using the sales comparison data valuation technique, to the extent that market data for similar assets was available. When market pricing data was not available for a given asset or asset class, the direct replacement cost method was used. The estimated fair values of acquired IPR&D were determined using the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Some of the significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for each asset (including revenues, cost of sales, R&D expenses, marketing, selling and administrative expenses, and contributory asset charges), the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, the potential regulatory and commercial success risk, and competitive trends impacting the asset and each cash flow stream, as well as other factors. The goodwill recognized from this acquisition is primarily attributable to KindredBio's assembled workforce and expected synergies. The majority of goodwill associated with this acquisition is not deductible for tax purposes. Bayer Animal Health Acquisition On August 1, 2020, we completed the acquisition of Bayer Animal Health. The acquisition has expanded our pet health product category, advancing our planned portfolio mix transformation and creating a better balance between our farm animal and pet health product categories. Our product portfolio and pipeline have been enhanced by the addition of Bayer Animal Health, which complements our commercial operations and international infrastructure while expanding our direct to retailer/e-commerce presence. Total consideration transferred to Bayer and its subsidiaries for the acquisition is summarized as follows: Cash consideration (1) $ 5,054 Fair value of Elanco common stock (2) 1,724 Fair value of total consideration transferred $ 6,778 (1) Includes initial cash consideration of $5,170 million less working capital and tax adjustments of $116 million. (2) Represents the acquisition date fair value of 73 million shares of Elanco common stock at $23.64 per share. Per the terms of the stock and asset purchase agreement, the number of shares was based on approximately $2.3 billion divided by the 20-day volume-weighted average stock price as of the last day of trading before the closing of the acquisition (but subject to a 7.5% symmetrical collar centered on the baseline share number of approximately $2.3 billion divided by an initial share price of $33.60). We recognized transaction costs related to the acquisition of Bayer Animal Health of $3 million and $267 million for the years ended December 31, 2021 and 2020 respectively. These costs were primarily associated with legal and professional services related to the acquisition and are reflected within asset impairment, restructuring and other special charges in the consolidated statements of operations. The amount of revenue attributable to Bayer Animal Health included in the consolidated statements of operations since the date of acquisition for the year ended December 31, 2020 was $592 million. Based on our current operational structure, we have not recorded standalone costs for Bayer Animal Health after the date of the acquisition. As a result, we are unable to accurately determine earnings or loss attributable to Bayer Animal Health since the date of acquisition. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at August 1, 2020 Cash and cash equivalents $ 169 Accounts receivable 10 Inventories 487 Prepaid expenses and other current assets 60 Property and equipment 315 Intangible assets: Acquired in-process research and development 65 Marketed products 3,740 Assets held for sale 138 Accounts payable and accrued liabilities (237) Accrued retirement benefits (220) Other noncurrent assets and liabilities - net (878) Total identifiable net assets 3,649 Goodwill 3,129 Total consideration transferred $ 6,778 The valuation of assets acquired and liabilities assumed was finalized during the second quarter of 2021. The measurement period adjustments recorded during 2021, which were made to reflect the facts and circumstances in existence as of the acquisition date, primarily related to the finalization of our fair value assessment of property and equipment located at the Shawnee, Kansas site (Shawnee), revised cash flow assumptions for marketed products, adjustments related to changes in inventory balances and gross margin assumptions, tax adjustments, and minor working capital adjustments. These adjustments resulted in a decrease to marketed products intangible assets of $210 million, a decrease to property and equipment of $32 million, a net increase to working capital accounts and other non-current assets and liabilities of $26 million, and an increase to goodwill of $207 million. Inventories comprised of $311 million, $81 million and $95 million in finished products, work in process, and raw materials, respectively. The estimate of fair value of finished products was determined based on net realizable value adjusted for the costs to complete the sales process, a reasonable profit allowance from the sales process, and estimated holding costs. The estimate of fair value of work in process was determined based on net realizable value adjusted for costs to complete the manufacturing process, costs of the sales process, a reasonable profit allowance for the remaining manufacturing and sales process effort, and an estimate of holding costs. The fair value of raw materials was determined to approximate book value. The net fair value step-up adjustment to inventories of $152 million was amortized to cost of sales as the inventory was sold to customers. As of December 31, 2021, the fair value step-up adjustment was fully amortized. Property and equipment is mostly composed of land, buildings, equipment (including machinery, furniture and fixtures, and computer equipment), and construction in progress. The estimated fair value of real property was determined using the sales comparison data valuation technique and personal property was determined using the direct replacement cost method. The estimated fair value of property and equipment located at the Shawnee, Kansas site was determined using the income approach. Intangible assets relate to $65 million of IPR&D and $3,740 million of marketed products. The acquired definite-lived intangible assets are being amortized over a weighted-average estimated useful life of approximately 10 years on a straight-line basis. The estimated fair values of identifiable intangible assets were determined using the income approach. Some of the significant assumptions inherent in the development of these asset valuations include the estimated net cash flows for each year for each asset or product (including revenues, cost of sales, R&D expenses, marketing, selling and administrative expenses, and contributory asset charges), the appropriate discount rate necessary to measure the risk inherent in each future cash flow stream, the life cycle of each asset, the potential regulatory and commercial success risk, and competitive trends impacting the asset and each cash flow stream, as well as other factors. Assets held for sale include $133 million of intangible assets, consisting of marketed products and IPR&D, and $5 million of inventory related to the divestitures of Drontal ™, Profender ™ and other products. See the Divestitures section below for further details. Accrued retirement benefits primarily relate to certain Bayer Animal Health international subsidiaries that have underfunded defined benefit pension plans. We have recorded the fair value of these plans using assumptions and accounting policies similar to those disclosed in Note 19: Retirement Benefits. Upon acquisition, the excess of projected benefit obligation over the fair value of plan assets was recognized as a liability and previously existing deferred actuarial gains and losses and unrecognized service costs or benefits were eliminated. The goodwill recognized from this acquisition represents the value of additional growth platforms and an expanded revenue base as well as anticipated operational synergies and cost savings from the creation of a single combined global organization. The majority of goodwill associated with this acquisition is not deductible for tax purposes. Pro forma financial information (unaudited) The following table presents the estimated unaudited pro forma combined results of Elanco and Bayer Animal Health for the year ended December 31, 2020 as if the acquisition had occurred on January 1, 2019: 2020 Revenue $ 4,439 Loss before income taxes (680) The supplemental pro forma financial information has been prepared using the acquisition method of accounting and is based on the historical financial information of Elanco and Bayer Animal Health. The supplemental pro forma financial information does not necessarily represent what the combined companies' revenue or results of operations would have been had the acquisitions been completed on January 1, 2019, nor is it intended to be a projection of future operating results of the combined company. It also does not reflect any operating efficiencies or potential cost savings that might be achieved from synergies of combining Elanco and Bayer Animal Health. The unaudited supplemental pro forma financial information reflects primarily pro forma adjustments related to divestitures, fair value estimates for intangibles, property and equipment, and inventory, and interest expense and amortization of debt issuance costs for the debt issuance to finance the acquisition of Bayer Animal Health. The unaudited supplemental pro forma financial information includes transaction charges associated with the acquisition. There are no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in the reported pro forma revenue and loss before income taxes. Pending Acquisitions NutriQuest U.S. On December 17, 2022, we entered into an asset purchase agreement to acquire certain U.S. marketed products, pipeline products and inventory of NutriQuest, LLC (NutriQuest). NutriQuest is a provider of swine, poultry, and dairy nutritional health products to animal producers. Pursuant to the terms and conditions set forth in the asset purchase agreement, total consideration includes a $19 million up-front payment, excluding the value of inventory, to be paid in two installments, as well as up to $85 million of additional cash consideration if specific development, sales, and geographic expansion milestones are achieved. The transaction closed on January 3, 2023, and the accounting for this acquisition was incomplete at the time the consolidated financial statements were issued. We anticipate that this transaction will be accounted for as a business combination under the acquisition method of accounting. NutriQuest Brazil On January 22, 2023, we entered into an asset purchase agreement to acquire inventory and distribution rights for certain marketed products and certain other assets of NutriQuest Nutricao Animal Ltda (NutriQuest Brazil). Pursuant to the terms and conditions set forth in the asset purchase agreement, total consideration is $24 million to be paid in two installments, subject to certain post-closing adjustments. The transaction is expected to close during the second quarter of 2023. We anticipate that this transaction will be accounted for as a business combination under the acquisition method of accounting. Divestitures Microbiome R&D platform carve-out In April 2022, we signed an agreement to transfer assets associated with our microbiome R&D platform to a newly created, independent biopharmaceutical company, BiomEdit, focused on developing solutions for animal and human health. As part of the agreement, we retain a non-voting, minority stake in the company. Assets transferred include intellectual property and laboratory equipment. The book values of those assets were not material. In addition, we have entered into transitional services agreements with the company for certain services. We have determined that the disposal of the related net assets does not qualify for reporting as a discontinued operation because it does not represent a strategic shift that has or will have a major effect on our operations and financial results. During the year ended December 31, 2022, we recorded a gain on the disposal of approximately $3 million. Shawnee and Speke divestitures During 2021, as part of our strategy to optimize our manufacturing footprint, we announced an agreement with TriRx Pharmaceuticals (TriRx) to sell our manufacturing sites in Shawnee, Kansas (Shawnee) and Speke, U.K. (Speke), including the planned transfer of approximately 600 employees. In connection with these arrangements, we also entered into long-term manufacturing and supply agreements, under which TriRx will manufacture existing Elanco products at both sites upon the closing of the transactions. In August 2021 and February 2022, we completed the sales of our Shawnee and Speke sites, respectively. Upon closing the sale of the Speke site, we recorded a contract asset of $55 million for the favorable supply agreement, which is included in prepaid expenses and other and other noncurrent assets on our consolidated balance sheets. Our fair value assessment for the favorable supply agreement was estimated using a combined income and market approach which incorporated Level 3 inputs. The divestitures did not represent a strategic shift that has or will have a major effect on our operations and financial results, and therefore did not qualify for reporting as discontinued operations. See Note 7: Asset Impairment, Restructuring and Other Special Charges for further information. Based on the terms of the agreements, we expect to receive aggregate gross cash proceeds of $78 million from the sales of Shawnee and Speke over a period of three years, which began in the second half of 2022. During the year ended December 31, 2022, we received cash proceeds of $13 million. Receivables for the remaining expected cash proceeds are included in other receivables and other noncurrent assets on our consolidated balance sheets. Elanco and Bayer Animal Health product divestitures In connection with advancing our efforts to secure the necessary regulatory clearances for our acquisition of Bayer Animal Health, we signed agreements in 2020 to divest the rights to manufacture and commercialize certain legacy Elanco products. In 2020, we signed agreements to divest the worldwide rights to Osurnia ™ and Vecoxan ™ and the U.S. rights to Capstar ™ . In July 2020, we completed these sales, along with certain other immaterial divestitures. The transactions were accounted for as asset divestitures. In 2020, we also signed an agreement to divest the worldwide rights to the legacy Elanco products Itrafungol ™ and Clomicalm ™ in connection with the required disposal of an early stage IPR&D asset. We also made a payment during the year ended December 31, 2021 and accrued for future amounts we are required to pay to the buyer of the IPR&D asset to help fund their development costs for a set period of time. The divestiture closed during 2021. There were no proceeds received from the disposition of these assets and the resulting immaterial impact was recorded in other (income) expense, net in the consolidated statements of operations. To allow the Bayer Animal Health acquisition to close on a timely basis, we signed agreements to divest the rights to the legacy Bayer Animal Health products Drontal and Profender within the U.K. and European Economic Area as well as other IPR&D. We completed the transactions, which were accounted for as asset divestitures, in August 2020. Drontal , Profender , and the IPR&D rights were acquired as part of the Bayer Animal Health acquisition. The related assets were classified as held for sale on the balance sheet as of the acquisition date and measured at fair value at the time of the acquisition; therefore, no gains were recognized on the sales. During the year ended December 31, 2020, a loss of $7 million was recorded on the sale of IPR&D as recognition of the potential income from the divestiture was constrained by revenue accounting standards. There were additional marketed and pipeline products that we were required to dispose of in order to comply with regulatory requirements. These divestitures did not have a material effect on our operations, cash flows or financial position. During the year ended December 31, 2020, we received gross cash proceeds of $435 million and recognized pre-tax gains of $156 million (net of transaction costs of $13 million) relating to the product divestitures described above. Pre-tax gains were included in other (income) expense, net in the consolidated statements of operations. Assets Held For Sale Assets considered held for sale in connection with the above divestitures were included in the respective line items on the consolidated balance sheet as follows: December 31, 2021 Inventories $ 31 Property and equipment, net 50 Total assets held for sale $ 81 BexCaFe Arrangement In June 2022, we signed a license agreement with BexCaFe for the development and commercialization of products related to Bexacat, an oral treatment intended to reduce glucose levels in diabetic cats. BexCaFe held the rights to the compound through a license agreement with similar terms and conditions. We will incur all development and regulatory costs associated with the products. Based on the guidance in Accounting Standards Codification (ASC) 810, Consolidation , we determined that BexCaFe represents a variable interest entity and that we are the primary beneficiary of BexCaFe because the terms of the license give us the power to direct the activities that most significantly impact the entity’s economic performance. As a result, we consolidated BexCaFe, a development-stage company with no employees that did not meet the definition of a business, as of the date we signed the license agreement. Upon initial consolidation of BexCaFe, we measured an IPR&D asset at its fair value of $59 million and recorded liabilities totaling $59 million, which included contingent consideration of $49 million based on the fair value of estimated future milestone payments and sales royalties owed under the license agreement. The initial fair value of the contingent payments was calculated based on an income approach, with payments adjusted for probability of success and then discounted to a present value. There is no minimum payout due on the contingent consideration and the maximum payout related to sales royalties is unlimited. Since BexCaFe did not meet the definition of a business, no goodwill was recorded and immediately after initial consolidation, we expensed the IPR&D asset because we concluded that it did not have an alternative future use. This amount is included in asset impairment, restructuring, and other special charges in our consolidated statement of operations for the year ended December 31, 2022. We paid $10 million to BexCaFe under the terms of this agreement during the year ended December 31, 2022. Contingent consideration liabilities of $49 million are included in other current liabilities and other noncurrent liabilities on our consolidated balance sheet as of December 31, 2022. We will make $13 million of payments to BexCaFe in the first quarter of 2023 in connection with development/regulatory milestones achieved upon U.S. FDA approval of the original new animal drug application for Bexacat in December 2022. Subsequent to the effective date of the license agreement, our consolidated financial statements include the assets, liabilities, operating results and cash flows of BexCaFe. Based on the guidance in ASC 810, income and expense between us and BexCaFe have been eliminated against the income or expense included in the financial statements of BexCaFe. The resulting amounts after the effect of these eliminations were included in our consolidated financial statements for the year ended December 31, 2022 and were not material.

Asset Impairment, Restructuring

Asset Impairment, Restructuring and Other Special Charges	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Asset Impairment, Restructuring and Other Special Charges	Asset Impairment, Restructuring and Other Special Charges In recent years, we have incurred substantial costs associated with restructuring programs and cost-reduction initiatives designed to achieve a flexible and competitive cost structure. As discussed further below, restructuring activities primarily include charges associated with facility rationalization and workforce reductions. In connection with our recent acquisitions, including the acquisition of Bayer Animal Health, we have also incurred costs associated with executing transactions and integrating acquired operations, which may include expenditures for banking, legal, accounting, and other similar services. In addition, we have incurred costs to stand up our organization as an independent company. All operating functions can be impacted by these actions; therefore, non-cash expenses associated with our tangible and intangible assets can be incurred as a result of revised fair value projections and/or determinations to no longer utilize certain assets in the business on an ongoing basis. For finite-lived intangible assets and other long-lived assets, whenever impairment indicators are present, we calculate the undiscounted value of projected cash flows associated with the asset, or group of assets, and compare it to the carrying amount. If the carrying amount is greater, we record an impairment loss for the excess of book value over fair value. Determinations of fair value can result from a complex series of judgments and rely on estimates and assumptions. See Note 3: Basis of Presentation and Note 4: Summary of Significant Accounting Policies for discussion regarding estimates and assumptions. 2021 Restructuring Programs In 2021, we announced two separate restructuring programs to improve operating efficiencies. The actions proposed in January 2021 focused on streamlining processes and delivering increased efficiency in functional areas, while improving the productivity of our investments in innovation. As part of the restructuring plan, we closed our R&D sites in Manukau, New Zealand and Cuxhaven, Germany. We also reduced duplication and optimized structures in U.S. operations, marketing, manufacturing and quality central functions, and administrative areas. The restructuring resulted in the elimination of approximately 315 positions around the world. Activities related to this initiative resulted in net charges of $43 million during the year ended December 31, 2021, primarily consisting of severance costs and other cash charges. Restructuring charges under this program were substantially complete as of December 31, 2021. The program announced in November 2021 included initiatives to consolidate certain international commercial operations into one organization, integrate our centralized global marketing organization into country level commercial organizations, transform and simplify our R&D organizational structure, and other organizational adjustments. In connection with the proposed restructuring, we eliminated approximately 380 positions. During the year ended December 31, 2021, activities related to this initiative resulted in charges of approximately $86 million, consisting of severance costs. During the year ended December 31, 2022, we recorded adjustments of $9 million to reduce severance accruals resulting from final negotiations and certain restructured employees filling open positions. Restructuring charges under this program were substantially complete as of December 31, 2022. 2020 Restructuring Program In September 2020, following the closing of the Bayer Animal Health acquisition, we implemented a restructuring program designed to reduce duplication, drive efficiency and optimize our footprint in key geographies. As part of the restructuring plan, we eliminated approximately 900 positions across 40 countries, primarily in the commercial and marketing functions, but also in R&D, manufacturing and quality, and back-office support functions. During the years ended December 31, 2021 and 2020, we recorded favorable adjustments of $15 million and charges of $162 million, respectively. The favorable adjustments reflect adjustments to severance accruals resulting from favorable negotiations and certain restructured employees filling open positions. Charges in 2020 primarily related to severance and asset write-down expenses. Restructuring charges under this program were substantially complete as of December 31, 2021. Components of asset impairment, restructuring and other special charges for the years ended December 31 are as follows: 2022 2021 2020 Restructuring charges (credits): Severance and other costs (credits) (1) $ (9) $ 110 $ 155 Facility exit costs (credits) 2 — (3) Acquisition related charges: Transaction and integration costs (2) 105 162 424 Non-cash and other items: Asset impairment (3) 60 66 17 Asset write-down (4) 21 284 19 Gain on sale of fixed assets — — (4) Net periodic benefit income (Note 19) — (29) — Settlements and other (5) 4 41 15 Total expense $ 183 $ 634 $ 623 (1) 2022 credits primarily relate to adjustments resulting from the reversal of severance accruals associated with the November 2021 program. 2021 charges mainly represent employee termination costs for restructuring programs announced and initiated in January 2021 and November 2021. These costs were partially offset by the reversal of severance accruals associated with the January 2021 and September 2020 programs during the period. 2020 restructuring charges mainly represent employee termination costs for cost-reduction and productivity initiatives related to a restructuring program initiated following the acquisition of Bayer Animal Health, partially offset by a favorable true-up of a lease termination related to a previous restructuring program. (2) Transaction costs represent external costs directly related to acquiring businesses and primarily include expenditures for banking, legal, accounting and other similar services. Integration costs represent internal and external incremental costs directly related to integrating acquired businesses, including the acquisitions of KindredBio and Bayer Animal Health (e.g., expenditures for consulting, system and process integration, and product transfers), as well as independent company stand-up costs related to the implementation of new systems, programs, and processes. (3) 2022 primarily includes a charge of $59 million related to the expensing of an IPR&D asset with no alternative future use licensed from BexCaFe during the second quarter. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. 2021 amounts represent the impact of adjustments to the fair value of certain IPR&D assets that were subject to product rationalization, including a decision by management to terminate an IPR&D project and fully impair the related asset associated with a farm animal parasiticide. The decision was prompted by unfavorable efficacy results observed during the year. See Note 12: Goodwill and Intangibles for further information. (4) 2022 primarily includes the finalization of the write-down charge upon the final sale of the Speke manufacturing site. 2021 primarily includes the initial adjustments recorded to write down the Shawnee and Speke assets classified as held for sale as of June 30, 2021 to an amount equal to estimated fair value less costs to sell, as well as adjustments to values of assets sold in relation to the Shawnee manufacturing site sold on August 1, 2021 and assets classified as held for sale in relation to the Speke manufacturing site. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. Also included are charges recorded to write down assets in Belford Roxo, Brazil; Basel, Switzerland; Cuxhaven, Germany; and Manukau, New Zealand that were classified as held and used to their current fair value. These charges were recorded in connection with announced restructuring programs. (5) 2022 includes a $2 million measurement period adjustment to the charge associated with the settlement of a liability for future royalty and milestone payments triggered in connection with our acquisition of KindredBio. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. 2021 includes the initial charge associated with the settlement of the liability for future royalty and milestone payments triggered in connection with our acquisition of KindredBio, accounting and advisory fees related to the sale of our manufacturing site in Shawnee, and $10 million of litigation settlements, partially offset by a gain recorded on the divestiture of an early stage IPR&D asset acquired as part of the Bayer Animal Health acquisition. 2020 charges relate to a non-recurring litigation settlement for a matter that originated prior to our separation from Lilly and a one-time expense associated with our agreement to build a new corporate headquarters. The following table summarizes the activity in our reserves established in connection with restructuring activities: Severance Balance at December 31, 2020 $ 130 Charges 126 Reserve adjustment (16) Cash paid (111) Foreign currency translation adjustments (3) Balance at December 31, 2021 126 Charges — Reserve adjustment (9) Cash paid (79) Foreign currency translation adjustments (2) Balance at December 31, 2022 $ 36 These reserves are included in other current liabilities and other noncurrent liabilities on our consolidated balance sheets based on the timing of when the obligations are expected to be paid, which can vary due to certain country negotiations and regulations. As of December 31, 2022, we expect to pay approximately $29 million over the next 12 months. We believe that the reserves are adequate.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventories	InventoriesWe state all inventories at the lower of cost or net realizable value. We use the last-in, first-out (LIFO) method for a portion of our inventories located in the continental U.S. Other inventories are valued by the first-in, first-out (FIFO) method or the weighted average cost method. Inventories at December 31 consisted of the following: 2022 2021 Finished products $ 725 $ 598 Work in process 605 565 Raw materials and supplies 266 254 Total 1,596 1,417 Decrease to LIFO cost (58) (46) Inventories $ 1,538 $ 1,371

Equity

Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Equity	Equity Common Stock Offering In January 2020, we entered into an underwriting agreement in which we agreed to sell approximately 23 million shares of our common stock at a public offering price of $32.00 per share. In connection with the offering, we granted the underwriters an option to purchase up to an additional 2 million shares, which was exercised in full on January 23, 2020. As a result, we issued and sold a total of approximately 25 million shares of our common stock for $768 million, after issuance costs. Tangible Equity Unit (TEU) Offering In January 2020, we also completed our offering of 11 million, 5.00% TEUs. Total proceeds, net of issuance costs, were $528 million. Each TEU was comprised of a prepaid stock purchase contract (prepaid stock) and a senior amortizing note due February 1, 2023. Subsequent to issuance, each TEU was legally separable into the two components. The prepaid stock was considered a freestanding financial instrument, indexed to Elanco common stock, and met the conditions for equity classification. The value allocated to the prepaid stock is reflected net of issuance costs in additional paid-in capital. The value allocated to the senior amortizing notes is reflected in debt on the consolidated balance sheets. Issuance costs related to the amortizing notes are reflected as a reduction of the carrying amount and are amortized through the maturity date using the effective interest rate method. The proceeds from the issuance were allocated to equity and debt based on the relative fair value of the respective components of each TEU as follows: Equity Component Debt Total Fair value per unit $ 42.80 $ 7.20 $ 50.00 Gross proceeds $ 471 $ 79 $ 550 Less: Issuance costs 19 3 22 Net proceeds $ 452 $ 76 $ 528 The senior amortizing notes had an aggregate principal amount of $79 million bearing interest at 2.75% per year. On each February 1, May 1, August 1, and November 1 until the maturity date, we have paid equal quarterly cash installments of $0.6250 per each amortizing note with an initial principal amount of $7.2007 (except for the first installment payment of $0.6528 per amortizing note paid on May 1, 2020). Each installment constitutes a payment of interest and partial payment of principal, and in the aggregate is equivalent to 5.00% per year with respect to the $50 stated amount per TEU. Unless settled early at the holder’s or our election, each prepaid stock purchase contract automatically settled on February 1, 2023 (the mandatory settlement date) for a number of shares of common stock per contract based on the average of the volume-weighted average trading prices during the 20 consecutive trading day period beginning on, and including the 21st scheduled trading day immediately preceding February 1, 2023 (applicable market value) with reference to the following settlement rates: Applicable Market Value Common Stock Issued Equal to or greater than $38.40 1.3021 shares (minimum settlement rate) Less than $38.40, but greater than $32.00 $50 divided by applicable market value Less than or equal to $32.00 1.5625 (maximum settlement rate) The prepaid stock purchase contracts were mandatorily convertible into a minimum of 14 million shares or a maximum of 17 million shares of our common stock on the mandatory settlement date (unless redeemed by us or settled earlier at the unit holder's option). The 14 million minimum shares are included in the calculation of basic weighted average shares outstanding for the years ended December 31, 2022, 2021 and 2020. The difference between the minimum and maximum shares represents potentially dilutive securities, which are included in the calculation of diluted weighted average shares outstanding on a pro rata basis to the extent that the average applicable market value is higher than $32.00 but is less than $38.40 during the period. The entire additional 3 million shares are included in diluted weighted average shares outstanding if the applicable market value is at or below $32.00 and the impact is not anti-dilutive.

Debt

Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Long-term debt as of December 31 consisted of the following: 2022 2021 Incremental Term Facility due 2025 $ 175 $ — Incremental Term Facility due 2028 494 499 Incremental Term Facility due 2029 249 — Term Loan B due 2027 3,881 4,118 Revolving Credit Facility (1) — 250 4.272% Senior Notes due 2023 344 750 4.900% Senior Notes due 2028 750 750 TEU Amortizing Notes due 2023 7 34 Unamortized debt issuance costs (64) (82) 5,836 6,319 Less current portion of long-term debt 388 294 Total long-term debt $ 5,448 $ 6,025 (1) In February 2023, we drew $100 million of net proceeds on our revolving credit facility. Maturities on the principal amount of debt outstanding as of December 31, 2022 consist of the following: As of and for the years ending December 31 2023 $ 401 2024 50 2025 225 2026 50 2027 3,718 2028 and thereafter 1,456 Total obligations and commitments 5,900 Unamortized debt issuance costs (64) Total debt $ 5,836 Cash payments for interest during the years ended December 31 were as follows: 2022 2021 2020 Interest paid $ 266 $ 221 $ 131 2022 Financings In April 2022, we entered into an incremental assumption agreement with Farm Credit Mid-America, PCA (Farm Credit) supplementing and amending our existing credit agreement dated August 1, 2020 relating to our senior secured credit facility. The incremental assumption agreement provides for an incremental term facility with an aggregate principal amount of $250 million maturing on April 19, 2029. The new incremental term facility bears interest at the Secured Overnight Financing Rate (Term SOFR), including a credit spread adjustment, plus 175 basis points and will be payable in quarterly installments of principal and interest with a final balloon payment due on April 19, 2029. The proceeds were used to repay a portion of our outstanding obligations under our revolving credit facility. The terms of the incremental term facility, including pledged collateral and financial maintenance covenants, are generally consistent with the terms of our existing term loan B credit facility (Term Loan B) and revolving credit facility. In June 2022, we entered into an incremental assumption agreement with Bank of America, N.A. supplementing and amending our existing credit agreement dated August 1, 2020 relating to our senior secured credit facility. The incremental assumption agreement provides for an incremental term facility with an aggregate principal amount of $175 million. The new incremental term facility bears interest at Term SOFR, including a credit spread adjustment, plus 175 basis points and is payable in full on June 30, 2025. The proceeds were used to repay a portion of our outstanding obligations under our revolving credit facility. The terms of the incremental term facility, including pledged collateral and financial maintenance covenants, are generally consistent with the terms of our existing Term Loan B and revolving credit facility. 2021 Financing In August 2021, we entered into an incremental assumption agreement with Farm Credit supplementing and amending our existing credit agreement dated August 1, 2020 relating to our senior secured credit facility. The incremental assumption agreement provides for an incremental term facility with an aggregate principal amount of $500 million. The incremental term facility bears interest at a floating rate of LIBOR plus 175 basis points and is payable in quarterly installments of principal and interest with a final balloon payment due on August 12, 2028. The proceeds were used to retire our existing Senior Notes due August 27, 2021. The terms of the incremental term facility, including pledged collateral and financial maintenance covenants, are generally consistent with the terms of our existing Term Loan B and revolving credit facility. 2020 Financings In connection with the acquisition of Bayer Animal Health, on August 1, 2020, we borrowed $4,275 million under a Term Loan B facility. The Term Loan B bears interest at a floating rate of LIBOR plus 175 basis points and is payable in quarterly installments through August 1, 2027. Simultaneously, we entered into a revolving credit facility providing up to $750 million (with incremental capacity available if certain conditions are met) and maturing over a five-year term. The revolving credit facility bears interest at LIBOR plus an applicable margin ranging between 1.50% and 2.25% per annum based on our corporate family rating or corporate credit rating. We may draw on our revolving credit facility as a source of liquidity for certain operating activities and for additional flexibility to finance capital investments, business development activities, repayments of debt, and other cash requirements. These senior secured first lien credit facilities are secured by a significant portion of our assets. They include two financial maintenance covenants which are solely for the benefit of lenders under the revolving credit facility. There are no financial maintenance covenants for the benefit of the Term Loan B facility. The lenders under the Term Loan B facility have no enforcement rights with respect to the financial maintenance covenants for the revolving credit facility. The first financial maintenance covenant for the revolving credit facility requires us to maintain a net total leverage ratio level (which is not subject to step-downs) as of the end of each quarter. The required level of this covenant is based on closing date pro forma net leverage and pro forma adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) not exceeding 7.71 to 1.00 of our pro forma adjusted EBITDA for the four fiscal quarters ended December 31, 2022. The second financial maintenance covenant for the revolving credit facility requires us to maintain a ratio of pro forma adjusted EBITDA to cash interest expense of no less than 2.00 to 1.00, tested as of the end of each fiscal quarter. We were in compliance with all covenants under the credit facility as of December 31, 2022. Senior Notes In August 2018, we issued $2 billion of senior notes (Senior Notes). The Senior Notes comprised of $500 million of 3.912% Senior Notes due August 27, 2021 (fully repaid as part of the August 2021 Farm Credit refinancing), $750 million of 4.272% Senior Notes due August 28, 2023 (partially repaid as part of our April 2022 tender offer discussed below), and $750 million of 4.900% Senior Notes due August 28, 2028. The interest rate payable on each series of Senior Notes is subject to adjustment if Moody's Investor Services, Inc. or Standard & Poor's Financial Services LLC downgrades, or subsequently upgrades, its ratings on the respective series of Senior Notes. The indenture that governs the Senior Notes contains covenants that limit 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 to other customary terms. We were in compliance with all such covenants under the indenture governing the Senior Notes as of December 31, 2022. TEU Amortizing Notes On January 22, 2020, we issued $550 million in TEUs. We offered 11 million, 5.00% TEUs at the stated amount of $50 per unit, comprised of prepaid stock purchase contracts and a senior amortizing note due February 1, 2023 (the mandatory settlement date). Total cash of $528 million was received, comprised of $452 million of prepaid stock purchase contracts and $76 million of senior amortizing notes, net of issuance costs. We paid $28 million representing partial payment of principal and interest on the TEU amortizing notes during the year ended December 31, 2022. The TEU amortizing notes were fully repaid on February 1, 2023. See Note 9: Equity for further information. Debt Extinguishment In April 2022, we completed a tender offer and retired $406 million in aggregate principal amount of our 4.272% Senior Notes due August 28, 2023, resulting in a debt extinguishment loss of approximately $17 million recognized in interest expense, net of capitalized interest in the consolidated statements of operations. The repayment was funded with proceeds received from a draw under our revolving credit facility. In 2022, we repaid indebtedness outstanding under our Term Loan B. We paid $195 million in cash, composed of principal and accrued interest, resulting in a debt extinguishment loss of approximately $3 million recognized in interest expense, net of capitalized interest in the consolidated statements of operations. In January 2020, we repaid indebtedness outstanding under our existing term loan facility. We paid $372 million in cash, composed of $371 million of principal and $1 million of accrued interest, resulting in a debt extinguishment loss of $1 million (recognized in interest expense, net of capitalized interest in the consolidated statements of operations for the year ended December 31, 2020), primarily related to the write-off of deferred debt issuance costs.

Financial Instruments and Fair

Financial Instruments and Fair Value	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value	Financial Instruments and Fair Value Financial instruments that are potentially subject to credit risk consist principally of trade receivables. We evaluate the creditworthiness of our customers on a regular basis, monitor economic conditions, and calculate allowances for estimated credit losses on our trade receivables on a quarterly basis using an expected credit loss model. We assess whether collectability is probable at the time of sale and on an ongoing basis. Collateral is generally not required. The risk associated with this concentration is mitigated by our ongoing credit-review procedures. A large portion of our cash is held by a few major financial institutions. We monitor the exposure with these institutions and do not expect any of these institutions to fail to meet their obligations. All highly liquid investments with a maturity of three months or less from the date of purchase are considered to be cash equivalents. The cost of these investments approximates fair value. We had investments without readily determinable fair values and equity method investments included in other noncurrent assets on the consolidated balance sheets totaling $27 million and $22 million as of December 31, 2022 and 2021 , respectively. We recorded net unrealized losses of $8 million and $10 million in other (income) expense, net in the consolidated statements of operations for the years ended December 31, 2022 and 2021 , respectively. Unrealized net gains in 2020 were $11 million. The following table summarizes the fair value information at December 31, 2022 and 2021 for foreign exchange contract assets (liabilities), investments, and cash flow hedge assets (liabilities) measured at fair value on a recurring basis in the respective balance sheet line items, as well as long-term debt (including TEU amortizing notes) for which fair value is disclosed on a recurring basis: Fair Value Measurements Using Financial statement line item Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value December 31, 2022 Prepaid expenses and other - foreign exchange contracts not designated as hedging instruments $ 76 $ — $ 76 $ — $ 76 Prepaid expenses and other - forward-starting interest rate contracts designated as cash flow hedges 14 — 14 — 14 Other noncurrent assets - forward-starting interest rate contracts designated as cash flow hedges 10 — 10 — 10 Other noncurrent assets - investments 7 7 — — 7 Other current liabilities - foreign exchange contracts not designated as hedging instruments (64) — (64) — (64) Long-term debt, including current portion (5,900) — (5,711) — (5,711) December 31, 2021 Prepaid expenses and other - foreign exchange contracts not designated as hedging instruments $ 19 $ — $ 19 $ — $ 19 Other noncurrent assets - forward-starting interest rate contracts designated as cash flow hedges 8 — 8 — 8 Other noncurrent assets - investments 13 13 — — 13 Other current liabilities - foreign exchange contracts not designated as hedging instruments (20) — (20) — (20) Long-term debt, including current portion (6,401) — (6,518) — (6,518) We determine our Level 2 fair value measurements based on a market approach using quoted market values or significant other observable inputs for identical or comparable assets or liabilities. Derivative Instruments and Hedging Activities We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures, we have entered into various derivative transactions. We formally assess, designate and document, as a hedge of an underlying exposure, each qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess, both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. Derivative cash flows, with the exception of net investment hedges, are principally classified in the operating activities section of the consolidated statements of cash flows, consistent with the underlying hedged item. Cash flows related to net investment hedges are classified in the investing activities section of the consolidated statements of cash flows. Further, we do not offset derivative assets and liabilities on the consolidated balance sheets. Our outstanding positions are discussed below. Derivatives Not Designated as Hedges We may enter into foreign exchange forward or option contracts to reduce the effect of fluctuating currency exchange rates. These derivative financial instruments primarily offset exposures in the Euro, British pound, Swiss franc, Brazilian real, Australian dollar, Japanese yen, Canadian dollar and Chinese yuan. Foreign currency derivatives used for hedging are put in place using the same or like currencies and duration as the underlying exposures and are recorded at fair value with the gain or loss recognized in other (income) expense, net in the consolidated statements of operations. Forward contracts generally have maturities not exceeding 12 months. As of December 31, 2022 and 2021 , we had outstanding foreign exchange contracts with aggregate notional amounts of $784 million and $1,212 million, respectively. The amount of net losses on derivative instruments not designated as hedging instruments, recorded in other (income) expense, net were as follows: For the Year Ended December 31, 2022 2021 2020 Foreign exchange forward contracts (1) $ (12) $ (35) $ (4) (1) These amounts were substantially offset in other (income) expense, net by the effect of changing exchange rates on the underlying foreign currency exposures. Derivatives Designated as Hedges In October 2018, as a means of mitigating the impact of currency fluctuations on our operations in Switzerland, we entered into a five-year cross-currency fixed interest rate swap with a 750 million CHF notional amount, which was designated as a net investment hedge against CHF denominated assets (the fair value of which was estimated based on quoted market values of similar hedges and was classified as Level 2). During the year ended December 31, 2020, we fully liquidated our cross-currency interest rate swaps for a cash benefit of $35 million (including $2 million in interest). Notwithstanding settlement, gains and losses within accumulated other comprehensive loss will remain in accumulated other comprehensive loss until either the sale or substantial liquidation of the hedged subsidiary. Over the life of the derivative, gains or losses due to spot rate fluctuations were recorded in cumulative translation adjustment in other comprehensive income (loss). The amounts of net gains on interest rate swap contracts, recorded, net of tax, in other comprehensive income (loss), were as follows: For the Year Ended December 31, 2022 2021 2020 Cross-currency interest rate swap contracts $ — $ — $ 24 We are subject to interest rate risk with regard to our existing floating-rate debt, and we utilize interest rate swap contracts to mitigate the variability in cash flows by effectively converting the floating-rate debt into fixed-rate debt. We recognize any differences between the variable interest rate payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense, net of capitalized interest over the life of the swaps. We have designated these swaps as cash flow hedges and record them at fair value on the consolidated balance sheets. Changes in the fair value of the hedges are recognized in other comprehensive income (loss). Fair value is estimated based on quoted market values of similar hedges and is classified as Level 2. Our outstanding forward-starting interest rate swaps have maturities ranging between 2023 and 2025 with aggregate notional amounts of $3,050 million and $3,800 million as of December 31, 2022 and 2021, respectively. The amounts of net gains (losses) on cash flow hedges recorded, net of tax, in other comprehensive income (loss), are as follows: For the Year Ended December 31, 2022 2021 2020 Forward-starting interest rate swaps, net of tax benefit of $0, $0, and $15, respectively $ 157 $ 86 $ (61) During the years ended December 31, 2022, 2021 and 2020, activity on cash flow hedges recorded in other comprehensive income (loss) included gains of $224 million and $86 million and losses of $61 million, respectively, related to mark-to-market adjustments. In April 2022 and September 2022, we took advantage of market opportunities to restructure our interest rate swap portfolio. We unwound the existing swaps and simultaneously entered into new agreements with the same notional amounts and covering the same tenors. As a result, we received cash settlements of $207 million. These gains were initially recognized in accumulated other comprehensive loss and are reclassified to interest expense, net of capitalized interest over the period during which the related interest payments are made. During the year ended December 31, 2022, we reclassified $49 million of gains relating to our terminated interest rate swaps from accumulated other comprehensive loss to interest expense, net of capitalized interest. Additionally, as a result of the April 2022 interest rate swap settlement, other comprehensive income (loss) for the year ended December 31, 2022 included a $17 million reclassification of a stranded tax benefit from accumulated other comprehensive loss to income tax expense (benefit), based on our policy to reclassify income tax effects from accumulated other comprehensive loss using the portfolio approach. Other than the reclassification of the stranded tax benefit, there was no tax effect recorded in relation to our cash flow hedges for the years ended December 31, 2022 and 2021 after the application of the U.S. valuation allowance. See Note 16: Income Taxes for further discussion. During the years ended December 31, 2022, 2021 and 2020, we reclassified $15 million, $28 million and $7 million, respectively, of net losses into interest expense. Over the next 12 months, we expect to reclassify a gain of $105 million, which includes $89 million relating to the interest rate swap settlements, to interest expense, net of capitalized interest.

Goodwill and Intangibles

Goodwill and Intangibles	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangibles	Goodwill and Intangibles Goodwill The following table summarizes the changes in the carrying amount of goodwill: Balance as of December 31, 2020 $ 6,225 Bayer Animal Health measurement period adjustments 207 Additions related to the KindredBio acquisition 33 Goodwill associated with Shawnee, Speke and other divestitures (64) Foreign currency translation adjustments (229) Balance as of December 31, 2021 6,172 KindredBio measurement period adjustments 3 Goodwill associated with Speke divestiture (3) Foreign currency translation adjustments (179) Balance as of December 31, 2022 $ 5,993 Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment at least annually and when certain qualitative impairment indicators are present. When required, a comparison of fair value to the carrying amount of our single reporting unit is performed to determine the amount of any impairment. We begin by assessing qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying value. Based on that qualitative assessment, if we conclude that it is more likely than not that the fair value of our single reporting unit is less than its carrying value, we conduct a quantitative goodwill impairment test, which involves comparing the estimated fair value of our single reporting unit to its carrying value, including goodwill. We estimate the fair value of our single reporting unit using an income approach. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the difference. During the third quarter of 2022, a significant change in our market capitalization relative to our book value, among other factors, triggered the need for an impairment review. However, no impairment existed with respect to our goodwill because the estimated fair value of our single reporting unit exceeded the carrying amount by more than 20%. Given the general worldwide economic conditions, we reevaluated our impairment testing from a qualitative perspective as December 31, 2022, which did not result in a change to our previous conclusion that no impairment exists. No impairments have occurred with respect to the carrying value of goodwill for the years ended December 31, 2022, 2021 and 2020. Since a significant portion of our goodwill is denominated in foreign currencies, changes to our goodwill balance can occur over time due to changes in foreign exchange rates. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion related to goodwill resulting from recent business combinations and changes in the carrying amount of goodwill. Other Intangibles The components of intangible assets other than goodwill as of December 31 were as follows: 2022 2021 Description Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Finite-lived intangible assets: Marketed products $ 6,561 $ (2,275) $ 4,286 $ 6,828 $ (1,837) $ 4,991 Software 310 (135) 175 285 (77) 208 Other 47 (31) 16 47 (28) 19 Total finite-lived intangible assets 6,918 (2,441) 4,477 7,160 (1,942) 5,218 Indefinite-lived intangible assets: Acquired in-process research and development 365 — 365 369 — 369 Other intangible assets $ 7,283 $ (2,441) $ 4,842 $ 7,529 $ (1,942) $ 5,587 Marketed products consist of the amortized cost of the rights to assets acquired in business combinations and approved for marketing in a significant global jurisdiction. Also included in this category are post-approval milestone payments from transactions other than a business combination. Software consists of certain costs incurred in connection with obtaining or developing internal-use software, including payroll and payroll-related costs for employees directly associated with the internal-use software projects and direct costs of external resources. These costs include software classified as "in process" until the project is substantially complete and the software is ready for its intended purpose, at which point the costs are amortized on a straight-line basis over the estimated useful life. For the years ended December 31, 2022, 2021 and 2020, depreciation expense included software amortization of $65 million, $52 million, and $35 million, respectively. Other finite-lived intangibles consist primarily of the amortized cost of licensed platform technologies that have alternative future uses in research and development, manufacturing technologies and customer relationships from business combinations. Acquired IPR&D consists of capitalized R&D costs, adjusted for subsequent impairments, if any. The costs of acquired IPR&D projects acquired directly in a transaction other than a business combination are capitalized if the projects have an alternative future use; otherwise, they are expensed immediately. The fair values of acquired IPR&D projects acquired in business combinations are capitalized as other intangible assets. Several methods may be used to determine the estimated fair value of marketed products, IPR&D, and other finite-lived intangibles acquired in a business combination. We utilize the "income method" for these intangibles. This method is a Level 3 fair value measurement and applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products and expected industry trends. The estimated future net cash flows are then discounted to the present value using an appropriate discount rate. This analysis is performed for each group of assets independently. The acquired IPR&D assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are tested for impairment and amortized over the remaining useful life or written off, as appropriate. Indefinite-lived intangible assets are reviewed for impairment at least annually and when impairment indicators are present. The fair value of the indefinite lived intangible assets (acquired IPR&D) is estimated using the same assumptions as those used for goodwill and by applying a probability weighting that reflects the risk of development and commercialization to the estimated future net cash flows that are derived from projected revenues and estimated costs. Finite-lived intangible assets are reviewed for impairment when an indicator of impairment is present. We compare the carrying amounts of the assets with the estimated undiscounted future cash flows. In the event the carrying amount exceeds the undiscounted cash flows, an impairment charge is recorded for the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. Impairment charges recorded in relation to our other intangible assets were as follows: 2022 2021 2020 Asset impairment, restructuring and other special charges $ 60 $ 66 $ 17 During 2022, we recorded impairment charges comprised of $59 million for acquired IPR&D and $1 million for an other finite-lived intangible asset. The charge for acquired IPR&D primarily related to the expensing of an IPR&D asset with no alternative future use licensed from BexCaFe during the second quarter of 2022. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. The charge recorded for the other finite-lived intangible asset resulted from the termination of a license, development and commercialization agreement during the fourth quarter of 2022. As a result of the termination of the arrangement, the related technology had no alternative future use. During 2021, we recorded impairment charges comprised of $55 million for acquired IPR&D and $11 million for marketed products. The impairments to acquired IPR&D primarily related to adjustments to the fair value of IPR&D assets that were subject to product rationalization, including a decision by management to terminate a project and fully impair the related asset associated with a farm animal parasiticide. The decision was prompted by unfavorable efficacy results observed during the year. The impairments of marketed products related to a full impairment based on a reassessment of competitive viability and project priority for an approved asset and an adjustment to the fair value of a mature brand that is subject to near-term product rationalization. During 2020, we recorded impairment charges comprised of $9 million for acquired IPR&D and $8 million for marketed products. The impairment to acquired IPR&D related to reassessments of geographic viability and project priority, which were partially prompted by the addition of the Bayer Animal Health IPR&D pipeline. The impairment of marketed products related to adjustments made to record assets classified as held for sale at the lower of their carrying amounts or fair values less costs to sell. Intangible assets with finite lives are capitalized and are amortized over their estimated useful lives, ranging from 3 to 20 years. As of December 31, 2022, the remaining weighted-average amortization periods for finite-lived intangible assets were as follows: Weighted Average Life (Years) Marketed products 9 Software 5 Other 5 The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2022 is as follows: 2023 2024 2025 2026 2027 Estimated amortization expense $ 512 $ 510 $ 491 $ 488 $ 456

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment is stated on the basis of cost. Provisions for depreciation of buildings and equipment are computed generally by the straight-line method at rates based on their estimated useful lives (12 to 50 years for buildings and 3 to 25 years for equipment). We review the carrying value of long-lived assets for potential impairment on a periodic basis and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Impairment is determined by comparing projected undiscounted cash flows to be generated by the asset to its carrying value. If an impairment is identified, a loss is recorded equal to the excess of the asset's carrying value over its fair value utilizing a discounted cash flow analysis, and the cost basis is adjusted. At December 31, property and equipment consisted of the following: 2022 2021 Land $ 40 $ 42 Buildings 578 543 Equipment 941 1,354 Construction in progress 163 157 1,722 2,096 Less accumulated depreciation (723) (1,041) Property and equipment, net $ 999 $ 1,055 The following provides property and equipment, less accumulated depreciation by geographic area: 2022 2021 United States $ 554 $ 557 Germany 224 211 United Kingdom 3 59 France 52 54 Other foreign countries 166 174 Property and equipment, net $ 999 $ 1,055 Depreciation expense related to property and equipment was as follows: 2022 2021 2020 Depreciation expense $ 89 $ 108 $ 122

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	LeasesWe determine if an arrangement is a lease at inception. We have operating leases for corporate offices, research and development facilities, vehicles, and equipment. We generally have remaining lease terms ranging from one Right-of-use assets included in noncurrent assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. The right-of-use asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain and there is a significant economic incentive to exercise that option. Operating lease expense for right-of-use assets is recognized on a straight-line basis over the lease term. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. We elected not to apply the recognition requirements of ASC 842, Leases , to short-term leases, which are deemed to be leases with a lease term of 12 months or less. Instead, we recognize lease payments in the consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. We elected not to apply the practical expedient related to the separation of lease and non-lease components or the practical expedient which allows entities to use hindsight when determining lease term. The impact of operating leases to the consolidated financial statements for the years ended December 31, was as follows: 2022 2021 2020 Lease cost Operating lease cost $ 45 $ 43 $ 38 Short-term lease cost 1 1 1 Variable lease cost 5 4 3 Total lease cost $ 51 $ 48 $ 42 Other information Operating cash outflows from operating leases $ 33 $ 40 $ 36 Right-of-use assets obtained in exchange for new operating lease liabilities 32 36 138 Weighted-average remaining lease term - operating leases 7 years 7 years 8 years Weighted-average discount rate - operating leases 4.0 % 3.8 % 3.8 % Supplemental balance sheet information related to our operating leases is as follows: Asset/Liability Balance Sheet Classification December 31, 2022 December 31, 2021 Right-of-use assets Other noncurrent assets $ 141 $ 161 Current operating lease liabilities Other current liabilities 31 34 Non-current operating lease liabilities Other noncurrent liabilities 111 127 As of December 31, 2022, the annual minimum lease payments for our operating lease liabilities were as follows: 2023 $ 36 2024 28 2025 22 2026 17 2027 11 2028 and thereafter 50 Total lease payments 164 Less imputed interest (22) Total $ 142 Lease contracts that have been executed but have not yet commenced are excluded from the tables above. As of December 31, 2022, we have a lease commitment that has not yet commenced for our new corporate headquarters in Indianapolis, Indiana. Total minimum lease payments are estimated to be approximately $378 million over a term of 25 years, excluding extensions. The increase in estimated minimum lease payments in comparison to the prior year estimate of $310 million is primarily due to higher expected costs. Final lease payments may vary depending on the actual cost of certain construction activities. Lease commencement is expected in 2025. Australia Sale-Leaseback On June 26, 2020, our wholly owned subsidiary, Elanco Australasia PTY LTD, sold land and an R&D facility located in New South Wales, Australia, for aggregate proceeds of $55 million, and leased the property back for an initial term of 15 years through a sale-leaseback transaction. Under the terms of the purchase and sale agreement, we determined that control of the assets was relinquished to the buyer-lessor. Therefore, we recognized a pre-tax gain on the sale of $46 million in other (income) expense, net in the consolidated statement of operations during the year ended December 31, 2020. Operating lease right-of-use assets and liabilities include the present value of $28 million for the associated lease payments, which are presented in other noncurrent assets and other noncurrent liabilities and other current liabilities on the consolidated balance sheet.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The 2018 Elanco Stock Plan (Plan) provides long-term incentives to attract, motivate and retain employees and non-employee directors. The types of stock-based awards available include, but are not limited to, restricted stock units (RSUs), performance-based awards (PAs), and stock options. Our practices and policies specify that stock-based compensation awards are approved by the Compensation Committee of the Board of Directors. The total number of shares authorized for stock-based compensation awards under the plan was 20 million. As of December 31, 2022, the aggregate number of remaining shares available for future grant was approximately 12.2 million. Stock-Based Compensation Expense We measure compensation expense for stock-based awards based on grant date fair value and the estimated number of awards that are expected to vest. For purposes of measuring stock-based compensation expense, we consider whether an adjustment to the observable market price is necessary to reflect material nonpublic information that is known to us at the time the award is granted. No adjustments were deemed necessary for the years ended December 31, 2022, 2021 or 2020. Forfeitures are estimated based on historical experience at the time of grant and are revised in subsequent periods if actual forfeitures differ from those estimates. Components of stock-based compensation expense and related tax benefit for the years ended December 31 were as follows: 2022 2021 2020 Total stock-based compensation expense (1) $ 59 $ 66 $ 47 Related tax benefit (3) (11) (8) (1) Substantially all of our stock-based compensation expense relates to RSUs and PAs. Restricted Stock Units RSUs are granted to certain employees and are settled in shares of our common stock. RSU shares are accounted for at fair value based upon the closing stock price on the date of the grant. The corresponding expense is amortized over the vesting period, typically three years. The number of shares ultimately issued for the RSU program remains constant with the exception of forfeitures. RSUs granted to employees for the years ended December 31 were as follows: (Units in millions) 2022 2021 2020 Granted units 1.3 1.1 1.3 Weighted-average fair value $ 28.17 $ 33.57 $ 27.44 Changes in the nonvested portion of RSUs for 2022 are summarized below: (Shares in millions) Shares Weighted-Average Grant Date Fair Value Nonvested units at January 1, 2022 2.2 $ 30.87 Granted 1.3 28.17 Vested (1.1) 30.51 Forfeited (0.4) 30.39 Nonvested units at December 31, 2022 2.0 29.40 The fair market value of RSUs vesting in 2022, 2021 and 2020 was $29 million, $30 million and $33 million, respectively. As of December 31, 2022, the total remaining unrecognized stock-based compensation expense related to nonvested RSUs was $24 million, which is expected to be amortized over a weighted-average remaining requisite service period of 16 months. Performance-Based Awards PAs, which are granted to eligible officers and management, represent the right to receive a share of our common stock and are subject to forfeiture until restrictions lapse (including continued employment through the end of the vesting period and achievement of certain pre-established metrics). Payouts can vary depending on achievement. PA shares are accounted for at fair value based upon the closing stock price on the date of grant and fully vest at the end of the measurement period. Stock-based compensation expense for PAs is recognized only if it is deemed probable that the performance condition will be achieved. PA activity during the year ended December 31, 2022 is summarized below: (Shares in millions) Shares Weighted-Average Grant Date Fair Value Nonvested awards at January 1, 2022 1.0 $ 30.53 Granted 0.5 28.94 Vested (1.0) 33.45 Forfeited 0.0 31.40 Nonvested awards at December 31, 2022 0.5 28.94 The fair market value of PAs vesting in 2022, 2021 and 2020 was $23 million, $22 million and $2 million, respectively. As of December 31, 2022, the total remaining unrecognized stock-based compensation expense related to nonvested PAs was $6 million, which is expected to be amortized over a weighted-average remaining requisite service period of 12 months. Stock Option Program Stock options represent the right to purchase shares of our common stock within a specified period of time at a specified price. The exercise price for a stock option will be not less than 100% of the fair market value of the common stock on the date of the grant. We account for our employee stock options under the fair value method of accounting using a Black-Scholes-Merton valuation model to measure stock option expense at the date of grant. The corresponding expense is generally amortized on a straight-line basis over the vesting term. Stock options were granted in 2022 to our officers, management and board members at exercise prices equal to the fair market value of our stock at the date of the grant. Options fully vest three years from the grant date and have a term of 10 years. No stock options were granted in 2021 and 2020. The Black-Scholes-Merton model incorporates a number of valuation assumptions, which are noted in the following table, shown at their weighted-average values for the year ended December 31: 2022 Expected dividend yield (1) — % Risk-free interest rate (2) 1.59 % Expected stock price volatility (3) 36.5 % Expected term (4) (years) 6 (1) We have never declared nor paid any dividends on our common stock, and we do not anticipate paying dividends on our common stock for the foreseeable future. (2) Determined using the term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded (3) Determined using a leverage-adjusted historical volatility of peer companies (4) Determined using SEC safe harbor approach, based on a 3-year cliff vesting schedule and 10-year contractual term. Stock option activity during the year ended December 31, 2022 is summarized below: (Shares in millions) Shares of Common Stock Attributable to Options Weighted-Average Exercise Price of Options Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding at January 1, 2022 0.3 $ 31.61 Granted 0.5 28.94 Exercised — — Forfeited or expired — — Outstanding at December 31, 2022 0.8 $ 30.11 7.7 $ — Exercisable at December 31, 2022 0.3 31.61 5.8 — (1) Market price of underlying Elanco common stock less exercise price. Options do not have an intrinsic value unless the market price exceeds the exercise price.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our income tax provision for the years ended December 31, 2022, 2021 and 2020 includes income tax costs and benefits such as valuation allowances, uncertain tax positions, audit settlements, and other items. We are included in Lilly's U.S. tax examinations by the Internal Revenue Service through the full separation date of March 11, 2019. Pursuant to the tax matters agreement we executed with Lilly in connection with the IPO, the potential liabilities or potential refunds attributable to pre-IPO periods in which Elanco was included in a Lilly consolidated or combined tax return remain with Lilly. The U.S. examination by the Internal Revenue Service of tax years 2016 to 2018 began in 2019 and is ongoing. It is possible that the examination of these tax years could conclude within the next 12 months. Final resolution of certain matters is dependent upon several factors, including the potential for formal administrative proceedings. Effective January 1, 2022, the Tax Cuts and Jobs Act of 2017 (2017 Tax Act) requires the capitalization of research and development (R&D) costs for tax purposes, which can be amortized over five years and 15 years for domestic and foreign costs, respectively. The implementation of this provision in 2022 resulted in the capitalization of $161 million in costs, of which $154 million will be amortized over five years and $7 million will be amortized over 15 years. Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates. The tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The composition of loss before income tax expense (benefit) is as follows: 2022 2021 2020 Federal $ (350) $ (341) $ (491) Foreign 278 (230) (186) Loss before income taxes $ (72) $ (571) $ (677) The composition of income tax expense (benefit) is as follows: 2022 2021 2020 Current: Federal $ 11 $ — $ (36) Foreign 51 59 54 State 1 1 (7) Total current tax expense 63 60 11 Deferred: Federal (20) (11) (6) Foreign (36) (136) (116) State (1) (1) 8 Total deferred tax benefit (57) (148) (114) Income tax expense (benefit) $ 6 $ (88) $ (103) Significant components of our deferred tax assets and liabilities as of December 31 are as follows: 2022 2021 Deferred tax assets: Compensation and benefits $ 32 $ 58 Accruals and reserves 54 41 Tax credit carryovers 53 53 Tax loss carryovers 329 311 Business interest deduction limitation 120 55 Inventories 30 18 Restructuring and other reserves 13 31 R&D capitalized assets 42 — Operating lease liabilities 34 42 Other assets 13 34 Total gross deferred tax assets 720 643 Valuation allowances (228) (182) Total deferred tax assets 492 461 Deferred tax liabilities: Right-of-use assets (34) (42) Intangibles (920) (995) Property and equipment (70) (80) Cash flow hedge deferred gain (42) — Other liabilities (6) — Total deferred tax liabilities (1,072) (1,117) Deferred tax liabilities - net $ (580) $ (656) The deferred tax assets and related valuation allowance amounts for net operating losses and tax credits shown above have been adjusted for differences between financial reporting and tax return filings. At December 31, 2022, we have tax credit carryovers of $53 million available to reduce future income taxes. The amount is comprised of foreign, U.S. federal and state credits. The foreign credits total $8 million and if unused, will begin to expire in 2036. The U.S. federal credits total $30 million and if unused, will begin to expire in 2029. The state credits total $15 million and if unused, will begin to expire in 2023. The U.S. federal credits are subject to a partial valuation allowance and state credits are subject to a full valuation allowance. At December 31, 2022, we have net operating loss carryovers for foreign, U.S. federal and state income tax purposes of $329 million. $112 million will expire between 2023 and 2041, and $217 million of the carryovers have an indefinite carryforward period. Net operating losses and other carryovers for foreign, U.S. federal and state income tax purposes are subject to full and partial valuation allowances. Movements in the valuation allowance are summarized as follows: 2022 2021 January 1 $ (182) $ (100) Increase (49) (88) Release 3 6 December 31 $ (228) $ (182) The increase in the valuation allowance during 2022 was primarily attributable to the likelihood of not realizing the benefit of U.S. federal and state deferred tax assets because of U.S. pre-tax losses. The total net increase in the valuation allowance recorded in income tax expense (benefit) in the consolidated statements of operations was $80 million, $76 million and $72 million in 2022, 2021 and 2020, respectively with the remaining change in balance primarily recorded through accumulated other comprehensive loss. Deferred taxes are not provided on the unremitted earnings of subsidiaries outside of the U.S. because it is expected that these earnings will be reinvested indefinitely. For the amount deemed indefinitely reinvested, it is not practicable to determine the amount of the related deferred income tax liability due to the complexities in the tax laws and assumptions required to be made. Deferred taxes, including U.S. or foreign withholding taxes, would be provided when we no longer consider our subsidiary earnings to be permanently invested, such as in situations where our subsidiaries plan to make future dividend distributions. In accordance with the 2017 Tax Act, we treat taxes due on future Global Intangible Low-Taxed Income (GILTI) inclusions in U.S. taxable income as a current period expense when incurred. Cash payments of income taxes were as follows: 2022 2021 2020 Cash payments of income taxes $ 93 $ 151 $ 97 Income taxes receivable included in prepaid expenses and other on our consolidated balance sheets as of December 31 were as follows: 2022 2021 2020 Income taxes receivable $ 180 $ 130 $ 116 The following is a reconciliation of the income tax expense (benefit) applying the U.S. federal statutory rate to income before income taxes to reported income tax expense: 2022 2021 2020 Income tax benefit at the U.S. federal statutory tax rate $ (15) $ (120) $ (143) Add (deduct): Taxation of international operations (27) (16) (15) State taxes (11) (8) (10) Income tax credits (13) (14) (24) Non-deductible employee compensation 7 4 1 Other permanent adjustments (2) (8) 23 Change in uncertain tax positions 3 (2) (7) Change in valuation allowance 80 76 72 Brazil receivable (16) — — Income tax expense (benefit) $ 6 $ (88) $ (103) The Brazil receivable is attributable to an income tax refund claim resulting from a Brazil Supreme Court decision rendered in 2022 that determined certain Brazil state value-added tax (VAT) incentives were not subject to federal tax. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2022 2021 2020 Beginning balance at January 1 $ 6 $ 3 $ 8 Additions based on tax positions related to the current year 3 — — Changes for tax positions of prior years — (1) (2) Additions related to acquisition 7 4 — Settlements — — (3) Ending balance at December 31 $ 16 $ 6 $ 3 The total amount of unrecognized tax benefits that, if recognized, would affect tax expense was $2 million, $6 million, and $3 million at December 31, 2022, 2021, and 2020, respectively. Additions related to acquisition represent unrecognized tax benefits related to the 2021 KindredBio acquisition that were recorded on the opening balance sheet. We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense (benefit). Interest and penalties related to income tax matters were not material for the years ended December 31, 2022, 2021 and 2020.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters We are party to various legal actions that arise in the normal course of business. The most significant matters are described below. Loss contingency provisions are recorded when it is deemed probable that we will incur a loss and we can formulate a reasonable estimate of that loss. For the litigation matters discussed below for which a loss is reasonably possible, we are unable to estimate the possible loss or range of loss, if any. The process of resolving these matters is inherently uncertain and may develop over an extended period of time; therefore, at this time, the ultimate resolutions cannot be predicted. As of December 31, 2022 and 2021, we had no material liabilities established related to litigation as there were no significant claims which were probable and estimable. On May 20, 2020, a shareholder class action lawsuit captioned Hunter v. Elanco Animal Health Inc., et al. was filed in the United States District Court for the Southern District of Indiana (the Court) against Elanco and certain executives. On September 3, 2020, the Court appointed a lead plaintiff, and on November 9, 2020, the lead plaintiff filed an amended complaint adding additional claims against Elanco, certain executives, and other individuals. The lawsuit alleges, in part, that Elanco and certain of its executives made materially false and/or misleading statements and/or failed to disclose certain facts about Elanco’s supply chain, inventory, revenue and projections. The lawsuit seeks unspecified monetary damages and purports to represent purchasers of Elanco securities between September 30, 2018 and May 6, 2020, and purchasers of Elanco common stock issued in connection with Elanco's acquisition of Aratana. We filed a motion to dismiss on January 13, 2021. On August 17, 2022, the Court issued an order granting our motion to dismiss the case without prejudice. On October 14, 2022, the plaintiffs filed a motion for leave to amend the complaint. We filed an opposition to the plaintiffs' motion on December 7, 2022. We believe the claims made in the case are meritless, and we intend to vigorously defend our position. On October 16, 2020, a shareholder class action lawsuit captioned Saffron Capital Corporation v. Elanco Animal Health Inc., et al. was filed in the Marion Superior Court of Indiana against Elanco, certain executives, and other individuals and entities. On December 23, 2020, the plaintiffs filed an amended complaint adding an additional plaintiff. The lawsuit alleges, in part, that Elanco and certain of its executives made materially false and/or misleading statements and/or failed to disclose certain facts about Elanco’s relationships with third party distributors and revenue attributable to those distributors within the registration statement on Form S-3 dated January 21, 2020 and accompanying prospectus filed in connection with Elanco’s public offering which closed on or about January 27, 2020. The lawsuit seeks unspecified monetary damages and purports to represent purchasers of Elanco common stock or 5.00% TEUs issued in connection with the public offering. From February 2021 to August 2022, this case was stayed in deference to Hunter v. Elanco Animal Health Inc . On October 24, 2022, we filed a motion to dismiss. The plaintiffs filed their opposition to the motion to dismiss on December 23, 2022. We believe the claims made in the case are meritless, and we intend to vigorously defend our position. Claims seeking actual damages, injunctive relief, and/or restitution for allegedly deceptive marketing have been made against Elanco Animal Health Inc. and Bayer HealthCare LLC, along with other Elanco and Bayer entities, arising out of the use of Seresto™ , a non-prescription flea and tick collar for cats and dogs. During 2021, putative class action lawsuits were filed in federal courts in the U.S. alleging that the Seresto collars contain pesticides that can cause serious injury and death to cats and/or dogs wearing the product. The cases mention the existence of incident reports involving humans, but no plaintiff has claimed personal harm from the product. In August 2021, the lawsuits were consolidated by the Judicial Panel on Multidistrict Litigation, and the cases were transferred to the Northern District of Illinois. We are vigorously defending these lawsuits. In January 2023, an international lawsuit seeking damages for alleged negligence, breach of statutory regulations, breach of statutory duties, and deceptive marketing was filed against Elanco among other parties, arising out of the use of Seresto and Foresto™ , a flea and tick collar for cats and dogs that is marketed and sold in Europe and in Israel. We intend to defend our position vigorously. Further, in March 2021, a U.S. House of Representatives subcommittee chair requested that Elanco produce certain documents and information related to the Seresto collar and further made a request to temporarily recall Seresto collars from the market. On June 15, 2022, the subcommittee held a hearing at which our CEO testified. During and after the hearing, the subcommittee chair repeated his request that Elanco voluntarily recall the collars and also requested that the Environmental Protection Agency (EPA) commence administrative proceedings that would allow the EPA to remove Seresto from the market. Seresto is a pesticide registered with the EPA. A non-profit organization submitted a petition to the EPA requesting that the agency take action to cancel Seresto’s pesticide registration and suspend the registration pending cancellation. The EPA is considering this petition and asked for public comment. We submitted a comment to the EPA supporting the safety profile of Seresto . Data and scientific evaluation used during the product registration process and through pharmacovigilance review supports the product’s positive safety profile and efficacy. Therefore, we believe no removal, recall, or cancellation of the pesticide registration is warranted, nor has it been suggested by any regulatory agency. We continue to stand behind the safety profile for Seresto , and it remains available to consumers globally. In the third quarter of 2019, Tevra Brands, LLC (Tevra) filed a complaint in the U.S. District Court of the Northern District of California, alleging that Bayer Animal Health (acquired by us in August 2020) had been involved in unlawful exclusive dealing and tying of its flea and tick products Advantage , Advantix , and Seresto and maintained a monopoly in the market. The complaint was amended in March 2020 and then dismissed in September 2020 with leave to amend. A second amended complaint was filed in March 2021 and realleges claims of unlawful exclusive dealing related to Advantage and Advantix and monopoly maintenance. A motion to dismiss the second amended complaint was denied in January 2022. Tevra’s demands include both actual and treble damages. We intend to defend our position vigorously. Regulatory Matters On July 1, 2021, we received a subpoena from the SEC relating to our channel inventory and sales practices prior to mid-2020. We have cooperated in providing documents and information to the SEC and will continue to do so. Management believes that its actions were appropriate. At this stage, we are unable to estimate the range of any potential loss associated with this matter. Other Matters Corporate Headquarters The land for our new corporate headquarters is located in a Tax Increment Finance District, and the project is, in part, funded through Tax Incremental Financing (TIF) through an incentive agreement between us and the City of Indianapolis. The agreement provides for an estimated total incentive of $64 million to be funded by the City of Indianapolis in connection with the future tax increment revenue generated from the developed property. In December 2021, as part of a funding and development agreement entered into between us and the developer, we made a commitment to use the expected TIF proceeds towards the cost of developing and constructing the headquarters. In exchange, the developer reimbursed us up to the $64 million commitment in 2021. During the year ended December 31, 2022, we refunded approximately $15 million of the TIF proceeds to the developer. As a result, it is our expectation that our future lease payments will be reduced. The remaining accrued incentive is included in other noncurrent liabilities on our consolidated balance sheets and will be amortized over the lease term beginning on the commencement date and offset future rent expense.

Geographic Information

Geographic Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Geographic Information	Geographic Information We operate as a single operating segment engaged in the development, manufacturing, marketing and sales of animal health products worldwide for both pets and farm animals. Consistent with our operational structure, our CEO, as the chief operating decision maker, makes resource allocation and business process decisions globally across our consolidated business. Strategic decisions are managed globally with global functional leaders responsible for determining significant costs/investments and with regional leaders responsible for overseeing the execution of the global strategy. Our global research and development organization is responsible for development of new products. Our manufacturing organization is responsible for the manufacturing and supply of products and for the optimization of our supply chain. Regional leaders are responsible for the distribution and sale of our products and for local direct costs. The business is also supported by global corporate staff functions. Managing and allocating resources at the global corporate level enables our CEO to assess the overall level of resources available and how to best deploy these resources across functions, product types, regional commercial organizations and research and development projects in line with our overarching long-term corporate-wide strategic goals, rather than on a product or geographic basis. Consistent with this decision-making process, our CEO uses consolidated, single-segment financial information for purposes of evaluating performance, allocating resources, setting incentive compensation targets, as well as forecasting future period financial results. Our products include AviPro, Baytril, Catosal, Clynav, Cydectin Denagard, Maxiban, Rumensin , Pulmotil and other products for livestock, poultry and aquaculture, as well as Advantage, Advantix, Advocate (collectively referred to as the Advantage Family), Credelio, TruCan , Galliprant, Interceptor Plus, Seresto, Trifexis and other products for pets. We have a single customer that accounted for 11%, 10% and 11% of revenue for the years ended December 31, 2022, 2021 and 2020, respectively. The product sales resulted in accounts receivable with this customer of $73 million and $74 million as of December 31, 2022 and 2021, respectively. We are exposed to the risk of changes in social, political and economic conditions inherent in foreign operations and our results of operations and the value of our foreign assets are affected by fluctuations in foreign currency exchange rates. Selected geographic area information was as follows: 2022 2021 2020 United States $ 1,965 $ 2,124 $ 1,475 International 2,446 2,640 1,796 Revenue $ 4,411 $ 4,764 $ 3,271

Retirement Benefits

Retirement Benefits	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Retirement Benefits	Retirement Benefits Pension Plans We sponsor various defined benefit pension plans, which cover certain employees worldwide. Our plans in Switzerland and Germany represent approximately 91% of our global benefit obligation. We use a measurement date of December 31 to develop the change in benefit obligation, change in plan assets, funded status and amounts recorded on the consolidated balance sheets at December 31 for our defined benefit pension plans, which were as follows: 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 462 $ 560 Service cost 14 18 Interest cost 4 2 Actuarial gain (123) (25) Benefits paid (12) (4) Plan amendments (1) — Curtailment gain — (19) Settlements (1) (38) Foreign currency exchange rate changes and other adjustments (19) (32) Benefit obligation at end of year 324 462 Change in plan assets: Fair value of plan assets at beginning of year 207 234 Actual return on plan assets (26) 13 Employer contribution 12 12 Benefits paid (12) (4) Settlements (1) (38) Foreign currency exchange rate changes and other adjustments (5) (10) Fair value of plan assets at end of year 175 207 Funded status (148) (255) Unrecognized net actuarial (gain) loss (82) 13 Unrecognized prior service cost (30) (34) Net amount recognized $ (260) $ (276) Amounts recognized in the consolidated balance sheet consisted of: Other noncurrent assets $ 2 $ — Other current liabilities — (1) Accrued retirement benefits (150) (254) Accumulated other comprehensive income before income taxes (112) (21) Net amount recognized $ (260) $ (276) The unrecognized net actuarial (gain) loss and unrecognized prior service cost for these pension plans have not yet been recognized in net periodic pension costs and are included in accumulated other comprehensive income (loss) at December 31, 2022. We do not expect any plan assets to be returned to us in 2023. The following represents our weighted-average assumptions related to these pension plans as of December 31: (Percentages) 2022 2021 2020 Discount rate for benefit obligation 3.4 % 1.1 % 0.6 % Discount rate for net benefit costs 1.1 0.6 0.6 Rate of compensation increase for benefit obligation 3.0 2.7 3.1 Rate of compensation increase for net benefit costs 2.7 3.1 2.3 Expected return on plan assets for net benefit costs 3.1 2.9 3.2 The assumptions above are used to estimate our pension benefit obligations at year-end, which are reviewed on at least an annual basis. We revise these assumptions based on a yearly evaluation of long-term trends and market conditions that may impact the cost of providing retirement benefits. The weighted-average discount rates for our defined benefit plans are set by benchmarking against investment grade corporate bonds where available, including, when there is sufficient data, a yield curve approach. For countries that lack a sufficient corporate bond market, a government bond index is used to establish the discount rate. Overall, the yield curves used to measure the benefit obligations as of December 31, 2022 and 2021 resulted in higher discount rates as compared to their prior years. In evaluating the expected rate of return, we consider many factors, with a primary analysis of current and projected market conditions; asset returns and asset allocations; and the views of leading financial advisers and economists. We may also review our historical assumptions compared with actual results, as well as the assumptions and trend rates utilized by similar plans, where applicable. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: 2023 2024 2025 2026 2027 2027-2031 Benefit payments $ 12 $ 13 $ 14 $ 14 $ 16 $ 85 Amounts relating to these pension plans with projected benefit obligations in excess of plan assets were as follows at December 31: 2022 2021 Projected benefit obligation $ 301 $ 455 Fair value of plan assets 150 200 Amounts relating to these defined benefit pension plans with accumulated benefit obligations in excess of plan assets were as follows at December 31: 2022 2021 Accumulated benefit obligation $ 289 $ 441 Fair value of plan assets 146 200 The total accumulated benefit obligation for our defined benefit pension plans was $314 million and $446 million at December 31, 2022 and 2021, respectively. Net pension expense (benefit) related to our defined benefit pension plans included the following components: 2022 2021 2020 Service cost $ 14 $ 18 $ 14 Interest cost 4 2 2 Expected return on plan assets (6) (6) (6) Amortization of prior service cost (5) (6) (8) Amortization of net actuarial loss 1 2 3 Net curtailments and settlements (Note 7) — (29) — Net pension expense (benefit) $ 8 $ (19) $ 5 The components of net periodic benefit cost other than service cost and net curtailments and settlements are included in other (income) expense, net in the consolidated statements of operations. Net curtailments and settlements relate to the remeasurement of our pension benefit obligation as a result of workforce reductions in connection with our restructuring programs. See Note 7: Asset Impairment, Restructuring and Other Special Charges for further information. The following represents the pre-tax amounts recognized for these plans in other comprehensive income (loss): 2022 2021 2020 Actuarial gain (loss) arising during period $ 92 $ 29 $ (18) Prior year service cost during the year 1 — — Amortization of prior service cost, including settlements, in net loss (5) (36) (8) Amortization of net actuarial loss, including curtailments, in net loss 1 22 3 Foreign currency exchange rate changes and other 1 — 1 Total other comprehensive income (loss) during period $ 90 $ 15 $ (22) We recognized $11 million of income tax expense in other comprehensive income (loss) related to our defined benefit plans during the year ended December 31, 2022. Amounts recognized in 2021 and 2020 were immaterial. Benefit Plan Investments Our benefit plan investment policies are set with specific consideration of return and risk requirements in relationship to the respective liabilities. Our plan assets in our Switzerland and German pension plans represent approximately 87% of our plan assets for these pension plans. Given the long-term nature of our liabilities, these plans have the flexibility to manage an above-average degree of risk in the asset portfolios. At the investment-policy level, there are no specifically prohibited investments. However, within individual investment manager mandates, restrictions and limitations are contractually set to align with our investment objectives, ensure risk control and limit concentrations. We manage our portfolio to minimize concentration of risk by allocating funds within asset categories. In addition, within a category we use different managers with various management objectives to eliminate any significant concentration of risk. The investment strategy for the legacy Elanco plans is to diversify in five major categories with a designated percentage invested in each including 35% fixed-income securities, 30% equity securities, a share of 22% in real estate and 13% in other alternative investments. The acquired Bayer Animal Health plans are managed separately. The underlying investments are classified in the same categories with designated percentages in each of the following: 51% fixed-income securities, 26% equity securities and 23% in other alternative investments Each category is diversified and comprised of the following: • Fixed-income securities - Swiss bonds, global aggregates, global aggregate corporates, global government bonds, emerging market local currencies and emerging markets hard currencies. • Equity securities - Swiss equities, global equities, low volatility equities (to reduce risk), and emerging market equities. • Real estate - Swiss real estate and global real estate funds. • Other alternative investments - cash, cash equivalents and investments in senior secured loans. We determine the fair value of the investments based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities. Real estate is mostly comprised of public holdings. Real estate investments in registered investment companies that trade on an exchange are classified as Level 1 on the fair value hierarchy. Other real estate investments are marked to fair value using models that are supported by observable market-based data (Level 2). The fair values of these pension plan assets as of December 31, 2022 by asset category are as follows: Fair Value Measurements Using Asset Class Total Quoted Prices in Active Markets for Identical Assets Significant Observable Significant Unobservable Inputs Investments Valued at NAV (1) Public equity securities $ 49 $ 47 $ — $ — $ 2 Fixed income: Developed markets 64 63 — — 1 Emerging markets 9 9 — — — Real estate 23 17 6 — — Other 30 25 5 — — Total $ 175 $ 161 $ 11 $ — $ 3 (1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2022. The fair values of these pension plan assets as of December 31, 2021 by asset category are as follows: Fair Value Measurements Using Asset Class Total Quoted Prices in Active Markets for Identical Assets Significant Observable Significant Unobservable Inputs Investments Valued at NAV (1) Public equity securities $ 63 $ 60 $ — $ — $ 3 Fixed income: Developed markets 76 75 — — 1 Emerging markets 11 11 — — — Real estate 26 21 5 — — Other 31 26 5 — — Total $ 207 $ 193 $ 10 $ — $ 4 (1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2021. Contributions of $11 million to these pension plans are expected in 2023. Defined Contribution Plans Elanco has defined contribution savings plans that include certain employees worldwide. The purpose of these plans is generally to provide additional financial security during retirement by providing employees with an incentive to save. Our contributions to the plans are based on our employee contributions and the level of our match. Expenses related to our employees under the plans totaled $34 million, $39 million and $35 million for the years ended December 31, 2022, 2021 and 2020, respectively. Multiemployer Plans Through the acquisition of Bayer Animal Health, we acquired participation in certain multiemployer arrangements with Bayer-Pensionskasse VVaG, Leverkusen (Germany) (Bayer-Pensionskasse) and Rheinishche Pensionskasse VVaG, Leverkusen (Germany) (Rheinishche Pensionskasse). These plans provide for basic pension benefits to the majority of our employees in Germany. Up to a certain salary level, the benefit obligations are covered by our contributions and the contributions from employees to the plan. Contributions made to the multi-employer plan are expensed as incurred and were as follows: 2022 2021 Bayer-Pensionskasse $ 2 $ 3 Rheinische-Pensionskasse 1 1 Total $ 3 $ 4 The Company-specific plan information for the Bayer-Pensionskasse and Rheinische-Pensionskasse is not publicly available, and the plans are not subject to a collective-bargaining agreement. The plans provide fixed, monthly retirement payments on the basis of the credits earned by the participating employees. To the extent that the Bayer-Pensionskasse or Rheinische-Pensionskasse is underfunded, the future contributions to the plan may increase and may be used to fund retirement benefits for employees related to other employers. The Bayer-Pensionskasse financial statements for the years ended December 31, 2021 and 2020 indicated total assets of $10,818 million and $11,476 million, respectively; total actuarial present value of accumulated plan benefits of $10,328 million and $10,950 million, respectively; and total contributions for all participating employers of $128 million and $134 million, respectively. Our plan contributions in 2022 and 2021 did not exceed 5% of the total contributions. The Rheinische-Pensionskasse financial statements for the years ended December 31, 2021 and 2020 indicated total assets of $1,054 million and $1,026 million, respectively; total actuarial present value of accumulated plan benefits of $1,002 million and $972 million, respectively; and total contributions for all participating employers of $52 million each year. Our plan contributions in 2022 and 2021 did not exceed 5% of the total contributions. Contributing to these types of plans creates risk that differs from providing benefits under our sponsored plans, in that if another participating employer ceases to contribute to a multiemployer plan, additional unfunded obligations may need to be funded over time by remaining participating employers.

Loss Per Share

Loss Per Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Loss Per Share	Loss Per Share We compute basic earnings (loss) per share by dividing net earnings (loss) available to common shareholders by the actual weighted average number of common shares outstanding for the reporting period. Elanco has variable common stock equivalents relating to certain equity awards in stock-based compensation arrangements. We also had variable common stock equivalents related to the TEU prepaid stock purchase contracts (see Note 9: Equity for further discussion). Diluted earnings per share reflects the potential dilution that could occur if holders of the unvested equity awards and unsettled TEUs converted their holdings into common stock. The weighted average number of potentially dilutive shares outstanding is calculated using the treasury stock method. Potential common shares that would have the effect of increasing diluted earnings per share (or reducing loss per share) are considered to be anti-dilutive and as such, these shares are not included in the calculation of diluted earnings (loss) per share. Basic and diluted loss per share are calculated as follows: 2022 2021 2020 Net loss available to common shareholders $ (78) $ (483) $ (574) Determination of shares: Weighted average common shares outstanding 488.3 487.2 441.4 Assumed conversion of dilutive common stock equivalents (1) — — — Diluted weighted average shares outstanding 488.3 487.2 441.4 Loss per share (2) Basic $ (0.16) $ (0.99) $ (1.30) Diluted $ (0.16) $ (0.99) $ (1.30) (1) During the years ended December 31, 2022, 2021 and 2020, we reported a net loss. Therefore, dilutive common stock equivalents are not assumed to have been issued since their effect is anti-dilutive. As a result, basic and diluted weighted average shares are the same, causing diluted net loss per share to be equivalent to basic net loss per share. For the years ended December 31, 2022, 2021 and 2020, approximately 3.3 million, 3.2 million and 4.1 million, respectively, of potential common shares were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. (2) Due to rounding conventions, earnings (loss) per share may not recalculate precisely based on the amounts presented within this table.

Selected Quarterly Data (unaudi

Selected Quarterly Data (unaudited)	12 Months Ended
	Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Data (unaudited)	Selected Quarterly Data (unaudited) In connection with the corrections discussed in Note 2: Revisions of Previously Issued Consolidated Financial Statements, we revised our unaudited interim consolidated financial statements for the affected prior periods as follows: Condensed Consolidated Statements of Operations Three Months Ended March 31, 2022 Three Months Ended June 30, 2022 Three Months Ended September 30, 2022 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,225 $ 1 $ 1,226 $ 1,177 $ (2) $ 1,175 $ 1,028 $ (2) $ 1,026 Marketing, selling and administrative 320 2 322 343 — 343 298 — 298 Asset impairment, restructuring and other special charges 46 (6) 40 86 — 86 26 — 26 Other (income) expense, net 9 — 9 — (6) (6) 8 — 8 Income (loss) before income taxes 71 4 75 (18) 4 (14) (42) (2) (44) Income tax expense (benefit) 23 1 24 4 (8) (4) 7 14 21 Net income (loss) 48 3 51 (22) 12 (10) (49) (16) (65) Earnings (loss) per share: Basic $ 0.10 — $ 0.10 $ (0.04) 0.02 $ (0.02) $ (0.10) (0.03) $ (0.13) Diluted $ 0.10 — $ 0.10 $ (0.04) 0.02 $ (0.02) $ (0.10) (0.03) $ (0.13) Weighted average shares outstanding: Basic 488.0 488.0 488.0 488.4 488.4 488.4 488.4 488.4 488.4 Diluted 492.2 492.2 492.2 488.4 488.4 488.4 488.4 488.4 488.4 Amounts presented may not recalculate in total due to rounding. Three Months Ended March 31, 2021 Three Months Ended June 30, 2021 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,242 $ 1 $ 1,243 $ 1,279 $ (1) $ 1,278 Cost of sales 569 (3) 566 551 — 551 Marketing, selling and administrative 348 1 349 385 — 385 Asset impairment, restructuring and other special charges 108 — 108 299 6 305 Interest expense, net of capitalized interest 61 — 61 60 — 60 Income (loss) before income taxes (80) 3 (77) (236) (7) (243) Income tax expense (benefit) (19) 6 (13) (26) (11) (37) Net income (loss) (61) (3) (64) (210) 4 (206) Earnings (loss) per share: Basic $ (0.12) (0.01) $ (0.13) $ (0.43) 0.01 $ (0.42) Diluted $ (0.12) (0.01) $ (0.13) $ (0.43) 0.01 $ (0.42) Weighted average shares outstanding: Basic 486.7 486.7 486.7 487.3 487.3 487.3 Diluted 486.7 486.7 486.7 487.3 487.3 487.3 Amounts presented may not recalculate in total due to rounding. Three Months Ended September 30, 2021 Three Months Ended December 31, 2021 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,131 $ — $ 1,131 $ 1,113 $ (1) $ 1,112 Marketing, selling and administrative 342 — 342 329 (2) 327 Income (loss) before income taxes (130) — (130) (121) 1 (120) Income tax expense (benefit) (26) 4 (22) (24) 9 (15) Net loss (104) (4) (108) (97) (8) (105) Loss per share: Basic $ (0.21) (0.01) $ (0.22) $ (0.20) (0.02) $ (0.22) Diluted $ (0.21) (0.01) $ (0.22) $ (0.20) (0.02) $ (0.22) Weighted average shares outstanding: Basic 487.3 487.3 487.3 487.4 487.4 487.4 Diluted 487.3 487.3 487.3 487.4 487.4 487.4 Amounts presented may not recalculate in total due to rounding. Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2022 Six Months Ended June 30, 2022 Nine Months Ended September 30, 2022 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Net income (loss) $ 48 $ 3 $ 51 $ 26 $ 15 $ 41 $ (23) $ (1) $ (24) Deferred income taxes (11) 4 (7) (40) 6 (34) (36) 8 (28) Asset impairment and write-down charges 28 (6) 22 87 (6) 81 87 (6) 81 Changes in operating assets and liabilities (331) (1) (332) (369) (15) (384) (384) (1) (385) Year-to-date amounts presented in the table above may not equal the sum of quarter-to-date amounts due to rounding. Three Months Ended March 31, 2021 Six Months Ended June 30, 2021 Nine Months Ended September 30, 2021 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Net loss $ (61) $ (3) $ (64) $ (271) $ — $ (271) $ (375) $ (3) $ (378) Deferred income taxes (32) 4 (28) (114) (6) (120) (119) (3) (122) Asset impairment and write-down charges 9 — 9 278 6 284 334 6 340 Changes in operating assets and liabilities (183) (1) (184) (190) — (190) (243) — (243) Year-to-date amounts presented in the table above may not equal the sum of quarter-to-date amounts due to rounding.

Related Party Agreements and Tr

Related Party Agreements and Transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Agreements and Transactions	Related Party Agreements and Transactions Transactions and Agreements with Bayer While Bayer is no longer considered a related party, we transacted with Bayer during the period after the acquisition of Bayer Animal Health, including the period in which Bayer was considered a principal owner of Elanco from August 2020 to December 2020. Those transactions primarily related to local country asset purchases and various transitional services agreements (TSAs), contract manufacturing arrangements, and certain lease agreements to ensure business continuity after the acquisition. For regulatory purposes in certain jurisdictions, consideration was required to be paid locally at closing in addition to amounts paid globally for the acquisition. Pursuant to the stock and asset purchase agreement, Bayer provided a refund for payment amounts duplicated in these regions. The total amount paid to and received from Bayer in 2021 and 2020 for those local country asset purchases was approximately $16 million and $633 million, respectively. All local country asset purchases were completed as of December 31, 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	We have prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States (GAAP). In our opinion, the financial statements reflect all adjustments (including those that are normal and recurring) that are necessary for fair presentation of the results of operations for the periods shown. All intercompany balances and transactions have been eliminated. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. We issued our financial statements by filing with the Securities and Exchange Commission and have evaluated subsequent events up to the time of the filing.
Revenue	We recognize revenue primarily from product sales to customers. Revenue from sales of products is recognized at the point where the customer obtains control of the goods and we satisfy our performance obligation, which is generally once the goods have shipped and the customer has assumed title. Payment terms differ by jurisdiction and customer, but payment terms in most of our major jurisdictions typically range from 30 to 120 days from date of shipment. Revenue for our product sales has not been adjusted for the effects of a financing component as we expect, at contract inception, that the period between when we transfer control of the product and when we receive payment will be one year or less. Any exceptions are either not material or we collect interest for payments made after the due date. For contract manufacturing organization (CMO) arrangements, we recognize revenue over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or service. Revenue is recognized over time when we are creating or enhancing an asset that the customer controls. In this instance, revenue is recognized as the asset is created or enhanced or our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed. Provisions for rebates and discounts, as well as returns are established in the same period the related sales are recognized. We generally ship product shortly after orders are received; therefore, we generally only have a few days of orders received but not yet shipped at the end of any reporting period. Shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are imposed on our sales of product and collected from a customer. Significant judgments must be made in determining the transaction price for sales of products related to anticipated rebates, discounts and returns. The following describe the most significant of these judgments: Sales Rebates and Discounts - Background and Uncertainties • Many of our products are sold to wholesale distributors. We initially invoice our customers contractual list prices. Contracts with direct and indirect customers may provide for various rebates and discounts that may differ in each contract. As a consequence, to determine the appropriate transaction price for our product sales at the time we recognize a sale to a direct customer, we must estimate any rebates or discounts that ultimately will be due to the direct customer and other customers in the distribution chain under the terms of our contracts. Judgments are required in making these estimates. • The rebate and discount amounts are recorded as a deduction to arrive at our net product sales. We estimate these accruals using an expected value approach. • In determining the appropriate accrual amount, we consider our historical experience with similar incentives programs and current sales data and estimates of inventory levels at our channel distributors to evaluate the impact of such programs on revenue and continually monitor the impact of this experience and adjust as necessary. Although we accrue a liability for rebates related to these programs at the time the sale is recorded, the rebate related to that sale is typically paid up to six months after the rebate or incentive period expires. Because of this time lag, in any particular period rebate adjustments may incorporate revisions of accruals for several periods. Sales Returns - Background and Uncertainties • We estimate a reserve for future product returns related to product sales using an expected value approach. This estimate is based on several factors, including: local returns policies and practices; returns as a percentage of revenue; an understanding of the reasons for past returns; estimated shelf life by product; and estimates of the amount of time between shipment and return. Adjustments to the returns reserve have been and may in the future be required based on revised estimates to our assumptions, which would have an impact on our consolidated results of operations. Reserves for sales returns are recorded concurrently with revenue recognition as a deduction to arrive at our net product sales and a liability.
Research and Development Expenses	Research and development expenses include the following: • Research and development costs, which are expensed as incurred; and • Milestone payment obligations incurred prior to regulatory approval of the product, which are accrued when the event requiring payment of the milestone occurs.
Goodwill and Intangible Assets	Goodwill and Intangible Assets We have historically performed our annual goodwill and indefinite-lived intangible asset impairment assessment as of the last day of the fourth fiscal quarter of each year. During the fourth quarter of 2022, we elected to change the date of our annual impairment assessment from December 31 st to October 1 st . The change was made to more closely align the impairment assessment date with our annual planning and budgeting process as well as our long-term planning and forecasting process. We have determined that this change in accounting principle is preferable and will not affect the consolidated financial statements. Pursuant to this change in accounting principle, in 2022 we performed an impairment assessment as of the first day of our fourth fiscal quarter. The change in impairment assessment date did not delay or avoid an impairment charge. This change was not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change has been applied prospectively. See Note 12: Goodwill and Intangibles for further accounting policy information.
Advertising Expenses	Costs associated with advertising are generally expensed as incurred and are included in marketing, selling and administrative expenses in the consolidated statements of operations. The costs of TV, radio, and other electronic media and publications are expensed when the related advertising occurs. Advertising and promotion expenses totaled approximately $201 million and $248 million in 2022 and 2021, respectively. Expenses increased significantly in 2021 as compared to prior years due to the 2020 acquisition of Bayer Animal Health.
Foreign Currency Translation	Operations in our subsidiaries outside the U.S. are recorded in the functional currency of each subsidiary which is determined by a review of the environment where each subsidiary primarily generates and expends cash. The results of operations for our subsidiaries outside the U.S., where the U.S. dollar is not the functional currency, are translated from functional currencies into U.S. dollars using the weighted average currency rate for the period. Assets and liabilities are translated using the period end exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries are recorded in other comprehensive income (loss).
Implementation of New Financial Accounting Pronouncements	The following table provides a brief description of an accounting standard that was effective January 1, 2022 and was adopted on that date: Standard Description Effect on the financial statements or other significant matters ASU 2021-10, Government Assistance (Topic 832) The amendments in this update require annual disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature, terms and conditions associated with the transactions and the financial statement line items affected. The adoption of this guidance did not have a material impact on our consolidated financial statements. The following table provides a brief description of an accounting standard applicable to us that has not yet been adopted: Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2020-04, Reference rate reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting; ASU 2021-01, Reference Rate Reform (Topic 848): Scope; ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2021-01 clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions. ASU 2022-06 extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. Adoption of the guidance is optional and effective as of March 12, 2020 through December 31, 2024. Adoption is permitted at any time during the period on a prospective basis. Our current credit facilities reference London Inter-Bank Offered Rate (LIBOR) as a benchmark rate. The underlying credit agreements include provisions which outline criteria for establishing a consistent replacement benchmark rate in the event that LIBOR is discontinued. Therefore, it is unlikely that we will need to adopt this optional guidance. However, we will continue to evaluate the impact as reference rate reform activities occur.
Income Tax	Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates. The tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.

Revision of Previously Issued_2

Revision of Previously Issued Consolidated Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]
Summary of Error Correction Adjustments	Year Ended December 31, 2021 Year Ended December 31, 2020 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 4,765 $ (1) $ 4,764 $ 3,273 $ (2) $ 3,271 Cost of sales 2,134 (2) 2,132 1,667 — 1,667 Research and development 369 — 369 327 2 329 Marketing, selling and administrative 1,404 (1) 1,403 996 1 997 Asset impairment, restructuring and other special charges 628 6 634 623 — 623 Loss before income taxes (567) (4) (571) (672) (5) (677) Income tax benefit (95) 7 (88) (112) 9 (103) Net loss (472) (11) (483) (560) (14) (574) Loss per share: Basic $ (0.97) $ (0.02) $ (0.99) $ (1.27) $ (0.03) $ (1.30) Diluted $ (0.97) $ (0.02) $ (0.99) $ (1.27) $ (0.03) $ (1.30) Weighted average shares outstanding: Basic 487.2 487.2 487.2 441.4 441.4 441.4 Diluted 487.2 487.2 487.2 441.4 441.4 441.4 Consolidated Balance Sheet December 31, 2021 As Reported Revisions As Revised Inventories $ 1,373 $ (2) $ 1,371 Total current assets 3,276 (2) 3,274 Other noncurrent assets 387 3 390 Property and equipment, net 1,061 (6) 1,055 Total assets 16,483 (5) 16,478 Accounts payable 418 (2) 416 Sales rebates and discounts 316 3 319 Other current liabilities 430 3 433 Total current liabilities 1,643 4 1,647 Deferred taxes 745 20 765 Other noncurrent liabilities 261 1 262 Total liabilities 8,945 25 8,970 Accumulated deficit (949) (30) (979) Total equity 7,538 (30) 7,508 Total liabilities and equity 16,483 (5) 16,478 Consolidated Statements of Equity Additional Paid-In Capital Retained Earnings (Accumulated Deficit) As Reported Revisions As Revised As Reported Revisions As Revised December 31, 2019 $ 5,636 $ 1 $ 5,637 $ 84 $ (5) $ 79 Net loss — — — (560) (14) (574) Stock-based compensation 48 (1) 47 — — — December 31, 2020 8,650 — 8,650 (477) (19) (496) Net loss — — — (472) (11) (483) December 31, 2021 8,696 — 8,696 (949) (30) (979) Consolidated Statements of Cash Flows December 31, 2021 December 31, 2020 As Reported Revisions As Revised As Reported Revisions As Revised Net loss $ (472) $ (11) $ (483) $ (560) $ (14) $ (574) Deferred income taxes (154) 6 (148) (125) 11 (114) Stock-based compensation expense 66 — 66 48 (1) 47 Asset impairment and write-down charges 339 6 345 25 — 25 Receivables (25) (10) (35) 14 10 24 Inventories 27 2 29 (95) — (95) Other assets 22 3 25 (123) 1 (122) Accounts payable and other liabilities (120) 4 (116) 369 (7) 362

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Description of Accounting Standards Adopted and Not Yet Adopted	The following table provides a brief description of an accounting standard that was effective January 1, 2022 and was adopted on that date: Standard Description Effect on the financial statements or other significant matters ASU 2021-10, Government Assistance (Topic 832) The amendments in this update require annual disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature, terms and conditions associated with the transactions and the financial statement line items affected. The adoption of this guidance did not have a material impact on our consolidated financial statements. The following table provides a brief description of an accounting standard applicable to us that has not yet been adopted: Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2020-04, Reference rate reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting; ASU 2021-01, Reference Rate Reform (Topic 848): Scope; ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2021-01 clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions. ASU 2022-06 extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. Adoption of the guidance is optional and effective as of March 12, 2020 through December 31, 2024. Adoption is permitted at any time during the period on a prospective basis. Our current credit facilities reference London Inter-Bank Offered Rate (LIBOR) as a benchmark rate. The underlying credit agreements include provisions which outline criteria for establishing a consistent replacement benchmark rate in the event that LIBOR is discontinued. Therefore, it is unlikely that we will need to adopt this optional guidance. However, we will continue to evaluate the impact as reference rate reform activities occur.

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of Activity in Sales Rebates and Discounts Liability	The following table summarizes the activity in our global sales rebates liability: Year Ended December 31, 2022 2021 Beginning balance $ 319 $ 297 Reduction of revenue 682 674 Payments (662) (645) Foreign currency translation adjustments (15) (7) Ending balance $ 324 $ 319
Disaggregation of Revenue	The following table summarizes our revenue disaggregated by product category: 2022 2021 Pet Health $ 2,138 $ 2,350 Farm Animal: Cattle 944 980 Poultry 716 744 Swine 384 464 Aqua 175 144 Total Farm Animal 2,219 2,332 Contract Manufacturing (1) 54 82 Revenue $ 4,411 $ 4,764 (1) Represents revenue from arrangements in which we manufacture products on behalf of a third party, including supply agreements associated with divestitures of products related to the acquisition of Bayer Animal Health

Acquisitions, Divestitures an_2

Acquisitions, Divestitures and Other Arrangements (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Fair Value Assets Acquired and Liabilities Assumed	The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at August 27, 2021 Cash and cash equivalents $ 31 Other net working capital 13 Property and equipment 33 Intangible assets, primarily acquired in-process research and development (IPR&D) 333 Deferred income taxes, net (30) Total identifiable net assets 380 Goodwill 35 Settlement of liability related to previous license agreement 29 Total consideration transferred $ 444 The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date: Estimated Fair Value at August 1, 2020 Cash and cash equivalents $ 169 Accounts receivable 10 Inventories 487 Prepaid expenses and other current assets 60 Property and equipment 315 Intangible assets: Acquired in-process research and development 65 Marketed products 3,740 Assets held for sale 138 Accounts payable and accrued liabilities (237) Accrued retirement benefits (220) Other noncurrent assets and liabilities - net (878) Total identifiable net assets 3,649 Goodwill 3,129 Total consideration transferred $ 6,778
Schedule of Purchase Consideration	Total consideration transferred to Bayer and its subsidiaries for the acquisition is summarized as follows: Cash consideration (1) $ 5,054 Fair value of Elanco common stock (2) 1,724 Fair value of total consideration transferred $ 6,778 (1) Includes initial cash consideration of $5,170 million less working capital and tax adjustments of $116 million. (2) Represents the acquisition date fair value of 73 million shares of Elanco common stock at $23.64 per share. Per the terms of the stock and asset purchase agreement, the number of shares was based on approximately $2.3 billion divided by the 20-day volume-weighted average stock price as of the last day of trading before the closing of the acquisition (but subject to a 7.5% symmetrical collar centered on the baseline share number of approximately $2.3 billion divided by an initial share price of $33.60).
Schedule of Pro Forma Information	The following table presents the estimated unaudited pro forma combined results of Elanco and Bayer Animal Health for the year ended December 31, 2020 as if the acquisition had occurred on January 1, 2019: 2020 Revenue $ 4,439 Loss before income taxes (680)
Schedule of Divestitures Activities	Assets considered held for sale in connection with the above divestitures were included in the respective line items on the consolidated balance sheet as follows: December 31, 2021 Inventories $ 31 Property and equipment, net 50 Total assets held for sale $ 81

Asset Impairment, Restructuri_2

Asset Impairment, Restructuring and Other Special Charges (Tables)	12 Months Ended
	Dec. 31, 2022
Restructuring and Related Activities [Abstract]
Summary of Asset Impairment, Restructuring and Other Special Charges	Components of asset impairment, restructuring and other special charges for the years ended December 31 are as follows: 2022 2021 2020 Restructuring charges (credits): Severance and other costs (credits) (1) $ (9) $ 110 $ 155 Facility exit costs (credits) 2 — (3) Acquisition related charges: Transaction and integration costs (2) 105 162 424 Non-cash and other items: Asset impairment (3) 60 66 17 Asset write-down (4) 21 284 19 Gain on sale of fixed assets — — (4) Net periodic benefit income (Note 19) — (29) — Settlements and other (5) 4 41 15 Total expense $ 183 $ 634 $ 623 (1) 2022 credits primarily relate to adjustments resulting from the reversal of severance accruals associated with the November 2021 program. 2021 charges mainly represent employee termination costs for restructuring programs announced and initiated in January 2021 and November 2021. These costs were partially offset by the reversal of severance accruals associated with the January 2021 and September 2020 programs during the period. 2020 restructuring charges mainly represent employee termination costs for cost-reduction and productivity initiatives related to a restructuring program initiated following the acquisition of Bayer Animal Health, partially offset by a favorable true-up of a lease termination related to a previous restructuring program. (2) Transaction costs represent external costs directly related to acquiring businesses and primarily include expenditures for banking, legal, accounting and other similar services. Integration costs represent internal and external incremental costs directly related to integrating acquired businesses, including the acquisitions of KindredBio and Bayer Animal Health (e.g., expenditures for consulting, system and process integration, and product transfers), as well as independent company stand-up costs related to the implementation of new systems, programs, and processes. (3) 2022 primarily includes a charge of $59 million related to the expensing of an IPR&D asset with no alternative future use licensed from BexCaFe during the second quarter. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. 2021 amounts represent the impact of adjustments to the fair value of certain IPR&D assets that were subject to product rationalization, including a decision by management to terminate an IPR&D project and fully impair the related asset associated with a farm animal parasiticide. The decision was prompted by unfavorable efficacy results observed during the year. See Note 12: Goodwill and Intangibles for further information. (4) 2022 primarily includes the finalization of the write-down charge upon the final sale of the Speke manufacturing site. 2021 primarily includes the initial adjustments recorded to write down the Shawnee and Speke assets classified as held for sale as of June 30, 2021 to an amount equal to estimated fair value less costs to sell, as well as adjustments to values of assets sold in relation to the Shawnee manufacturing site sold on August 1, 2021 and assets classified as held for sale in relation to the Speke manufacturing site. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. Also included are charges recorded to write down assets in Belford Roxo, Brazil; Basel, Switzerland; Cuxhaven, Germany; and Manukau, New Zealand that were classified as held and used to their current fair value. These charges were recorded in connection with announced restructuring programs. (5) 2022 includes a $2 million measurement period adjustment to the charge associated with the settlement of a liability for future royalty and milestone payments triggered in connection with our acquisition of KindredBio. See Note 6: Acquisitions, Divestitures and Other Arrangements for further discussion. 2021 includes the initial charge associated with the settlement of the liability for future royalty and milestone payments triggered in connection with our acquisition of KindredBio, accounting and advisory fees related to the sale of our manufacturing site in Shawnee, and $10 million of litigation settlements, partially offset by a gain recorded on the divestiture of an early stage IPR&D asset acquired as part of the Bayer Animal Health acquisition. 2020 charges relate to a non-recurring litigation settlement for a matter that originated prior to our separation from Lilly and a one-time expense associated with our agreement to build a new corporate headquarters.
Summary of Activity in Reserves	The following table summarizes the activity in our reserves established in connection with restructuring activities: Severance Balance at December 31, 2020 $ 130 Charges 126 Reserve adjustment (16) Cash paid (111) Foreign currency translation adjustments (3) Balance at December 31, 2021 126 Charges — Reserve adjustment (9) Cash paid (79) Foreign currency translation adjustments (2) Balance at December 31, 2022 $ 36

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories at December 31 consisted of the following: 2022 2021 Finished products $ 725 $ 598 Work in process 605 565 Raw materials and supplies 266 254 Total 1,596 1,417 Decrease to LIFO cost (58) (46) Inventories $ 1,538 $ 1,371

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of Stockholders Equity	The proceeds from the issuance were allocated to equity and debt based on the relative fair value of the respective components of each TEU as follows: Equity Component Debt Total Fair value per unit $ 42.80 $ 7.20 $ 50.00 Gross proceeds $ 471 $ 79 $ 550 Less: Issuance costs 19 3 22 Net proceeds $ 452 $ 76 $ 528 Unless settled early at the holder’s or our election, each prepaid stock purchase contract automatically settled on February 1, 2023 (the mandatory settlement date) for a number of shares of common stock per contract based on the average of the volume-weighted average trading prices during the 20 consecutive trading day period beginning on, and including the 21st scheduled trading day immediately preceding February 1, 2023 (applicable market value) with reference to the following settlement rates: Applicable Market Value Common Stock Issued Equal to or greater than $38.40 1.3021 shares (minimum settlement rate) Less than $38.40, but greater than $32.00 $50 divided by applicable market value Less than or equal to $32.00 1.5625 (maximum settlement rate)

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt as of December 31 consisted of the following: 2022 2021 Incremental Term Facility due 2025 $ 175 $ — Incremental Term Facility due 2028 494 499 Incremental Term Facility due 2029 249 — Term Loan B due 2027 3,881 4,118 Revolving Credit Facility (1) — 250 4.272% Senior Notes due 2023 344 750 4.900% Senior Notes due 2028 750 750 TEU Amortizing Notes due 2023 7 34 Unamortized debt issuance costs (64) (82) 5,836 6,319 Less current portion of long-term debt 388 294 Total long-term debt $ 5,448 $ 6,025
Schedule of Maturities of Long-term Debt	Maturities on the principal amount of debt outstanding as of December 31, 2022 consist of the following: As of and for the years ending December 31 2023 $ 401 2024 50 2025 225 2026 50 2027 3,718 2028 and thereafter 1,456 Total obligations and commitments 5,900 Unamortized debt issuance costs (64) Total debt $ 5,836
Cash Payments of Interest Expense and Income Taxes	Cash payments for interest during the years ended December 31 were as follows: 2022 2021 2020 Interest paid $ 266 $ 221 $ 131 Cash payments of income taxes were as follows: 2022 2021 2020 Cash payments of income taxes $ 93 $ 151 $ 97

Financial Instruments and Fai_2

Financial Instruments and Fair Value (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Fair Value Information	The following table summarizes the fair value information at December 31, 2022 and 2021 for foreign exchange contract assets (liabilities), investments, and cash flow hedge assets (liabilities) measured at fair value on a recurring basis in the respective balance sheet line items, as well as long-term debt (including TEU amortizing notes) for which fair value is disclosed on a recurring basis: Fair Value Measurements Using Financial statement line item Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value December 31, 2022 Prepaid expenses and other - foreign exchange contracts not designated as hedging instruments $ 76 $ — $ 76 $ — $ 76 Prepaid expenses and other - forward-starting interest rate contracts designated as cash flow hedges 14 — 14 — 14 Other noncurrent assets - forward-starting interest rate contracts designated as cash flow hedges 10 — 10 — 10 Other noncurrent assets - investments 7 7 — — 7 Other current liabilities - foreign exchange contracts not designated as hedging instruments (64) — (64) — (64) Long-term debt, including current portion (5,900) — (5,711) — (5,711) December 31, 2021 Prepaid expenses and other - foreign exchange contracts not designated as hedging instruments $ 19 $ — $ 19 $ — $ 19 Other noncurrent assets - forward-starting interest rate contracts designated as cash flow hedges 8 — 8 — 8 Other noncurrent assets - investments 13 13 — — 13 Other current liabilities - foreign exchange contracts not designated as hedging instruments (20) — (20) — (20) Long-term debt, including current portion (6,401) — (6,518) — (6,518)
Summary of Gain (loss), Net of Tax	The amount of net losses on derivative instruments not designated as hedging instruments, recorded in other (income) expense, net were as follows: For the Year Ended December 31, 2022 2021 2020 Foreign exchange forward contracts (1) $ (12) $ (35) $ (4) (1) These amounts were substantially offset in other (income) expense, net by the effect of changing exchange rates on the underlying foreign currency exposures. For the Year Ended December 31, 2022 2021 2020 Cross-currency interest rate swap contracts $ — $ — $ 24 The amounts of net gains (losses) on cash flow hedges recorded, net of tax, in other comprehensive income (loss), are as follows: For the Year Ended December 31, 2022 2021 2020 Forward-starting interest rate swaps, net of tax benefit of $0, $0, and $15, respectively $ 157 $ 86 $ (61)

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in the carrying amount of goodwill: Balance as of December 31, 2020 $ 6,225 Bayer Animal Health measurement period adjustments 207 Additions related to the KindredBio acquisition 33 Goodwill associated with Shawnee, Speke and other divestitures (64) Foreign currency translation adjustments (229) Balance as of December 31, 2021 6,172 KindredBio measurement period adjustments 3 Goodwill associated with Speke divestiture (3) Foreign currency translation adjustments (179) Balance as of December 31, 2022 $ 5,993
Components of Finite-Lived Intangible Assets	The components of intangible assets other than goodwill as of December 31 were as follows: 2022 2021 Description Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Finite-lived intangible assets: Marketed products $ 6,561 $ (2,275) $ 4,286 $ 6,828 $ (1,837) $ 4,991 Software 310 (135) 175 285 (77) 208 Other 47 (31) 16 47 (28) 19 Total finite-lived intangible assets 6,918 (2,441) 4,477 7,160 (1,942) 5,218 Indefinite-lived intangible assets: Acquired in-process research and development 365 — 365 369 — 369 Other intangible assets $ 7,283 $ (2,441) $ 4,842 $ 7,529 $ (1,942) $ 5,587
Components of Indefinite-Lived Intangible Assets	The components of intangible assets other than goodwill as of December 31 were as follows: 2022 2021 Description Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Carrying Amount, Gross Accumulated Amortization Carrying Amount, Net Finite-lived intangible assets: Marketed products $ 6,561 $ (2,275) $ 4,286 $ 6,828 $ (1,837) $ 4,991 Software 310 (135) 175 285 (77) 208 Other 47 (31) 16 47 (28) 19 Total finite-lived intangible assets 6,918 (2,441) 4,477 7,160 (1,942) 5,218 Indefinite-lived intangible assets: Acquired in-process research and development 365 — 365 369 — 369 Other intangible assets $ 7,283 $ (2,441) $ 4,842 $ 7,529 $ (1,942) $ 5,587
Schedule of Impaired Intangible Assets	Impairment charges recorded in relation to our other intangible assets were as follows: 2022 2021 2020 Asset impairment, restructuring and other special charges $ 60 $ 66 $ 17
Schedule of Weighted-Average Amortization Periods For Finite-Lived Intangible Assets	As of December 31, 2022, the remaining weighted-average amortization periods for finite-lived intangible assets were as follows: Weighted Average Life (Years) Marketed products 9 Software 5 Other 5
Schedule of Estimated Amortization Expense	The estimated amortization expense for each of the next five years associated with our finite-lived intangible assets as of December 31, 2022 is as follows: 2023 2024 2025 2026 2027 Estimated amortization expense $ 512 $ 510 $ 491 $ 488 $ 456

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment and Depreciation Expense	At December 31, property and equipment consisted of the following: 2022 2021 Land $ 40 $ 42 Buildings 578 543 Equipment 941 1,354 Construction in progress 163 157 1,722 2,096 Less accumulated depreciation (723) (1,041) Property and equipment, net $ 999 $ 1,055 The following provides property and equipment, less accumulated depreciation by geographic area: 2022 2021 United States $ 554 $ 557 Germany 224 211 United Kingdom 3 59 France 52 54 Other foreign countries 166 174 Property and equipment, net $ 999 $ 1,055 Depreciation expense related to property and equipment was as follows: 2022 2021 2020 Depreciation expense $ 89 $ 108 $ 122

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Schedule of Operating Leases to Condensed Consolidated Financial Statements	The impact of operating leases to the consolidated financial statements for the years ended December 31, was as follows: 2022 2021 2020 Lease cost Operating lease cost $ 45 $ 43 $ 38 Short-term lease cost 1 1 1 Variable lease cost 5 4 3 Total lease cost $ 51 $ 48 $ 42 Other information Operating cash outflows from operating leases $ 33 $ 40 $ 36 Right-of-use assets obtained in exchange for new operating lease liabilities 32 36 138 Weighted-average remaining lease term - operating leases 7 years 7 years 8 years Weighted-average discount rate - operating leases 4.0 % 3.8 % 3.8 %
Summary of Supplemental Balance Sheet Information Related to Operating Leases	Supplemental balance sheet information related to our operating leases is as follows: Asset/Liability Balance Sheet Classification December 31, 2022 December 31, 2021 Right-of-use assets Other noncurrent assets $ 141 $ 161 Current operating lease liabilities Other current liabilities 31 34 Non-current operating lease liabilities Other noncurrent liabilities 111 127
Schedule of Annual Minimum Lease Payments of Operating Lease Liabilities	As of December 31, 2022, the annual minimum lease payments for our operating lease liabilities were as follows: 2023 $ 36 2024 28 2025 22 2026 17 2027 11 2028 and thereafter 50 Total lease payments 164 Less imputed interest (22) Total $ 142

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expenses	Components of stock-based compensation expense and related tax benefit for the years ended December 31 were as follows: 2022 2021 2020 Total stock-based compensation expense (1) $ 59 $ 66 $ 47 Related tax benefit (3) (11) (8)
Schedule of Restricted Stock Unit Activity	RSUs granted to employees for the years ended December 31 were as follows: (Units in millions) 2022 2021 2020 Granted units 1.3 1.1 1.3 Weighted-average fair value $ 28.17 $ 33.57 $ 27.44 Changes in the nonvested portion of RSUs for 2022 are summarized below: (Shares in millions) Shares Weighted-Average Grant Date Fair Value Nonvested units at January 1, 2022 2.2 $ 30.87 Granted 1.3 28.17 Vested (1.1) 30.51 Forfeited (0.4) 30.39 Nonvested units at December 31, 2022 2.0 29.40
Schedule of Performance Awards Activity	PA activity during the year ended December 31, 2022 is summarized below: (Shares in millions) Shares Weighted-Average Grant Date Fair Value Nonvested awards at January 1, 2022 1.0 $ 30.53 Granted 0.5 28.94 Vested (1.0) 33.45 Forfeited 0.0 31.40 Nonvested awards at December 31, 2022 0.5 28.94
Schedule of Assumptions Used	The Black-Scholes-Merton model incorporates a number of valuation assumptions, which are noted in the following table, shown at their weighted-average values for the year ended December 31: 2022 Expected dividend yield (1) — % Risk-free interest rate (2) 1.59 % Expected stock price volatility (3) 36.5 % Expected term (4) (years) 6 (1) We have never declared nor paid any dividends on our common stock, and we do not anticipate paying dividends on our common stock for the foreseeable future. (2) Determined using the term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded (3) Determined using a leverage-adjusted historical volatility of peer companies (4) Determined using SEC safe harbor approach, based on a 3-year cliff vesting schedule and 10-year contractual term.
Schedule of Stock Option Activity	Stock option activity during the year ended December 31, 2022 is summarized below: (Shares in millions) Shares of Common Stock Attributable to Options Weighted-Average Exercise Price of Options Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding at January 1, 2022 0.3 $ 31.61 Granted 0.5 28.94 Exercised — — Forfeited or expired — — Outstanding at December 31, 2022 0.8 $ 30.11 7.7 $ — Exercisable at December 31, 2022 0.3 31.61 5.8 —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Composition of Loss Before Income Tax Expense (Benefit)	The composition of loss before income tax expense (benefit) is as follows: 2022 2021 2020 Federal $ (350) $ (341) $ (491) Foreign 278 (230) (186) Loss before income taxes $ (72) $ (571) $ (677)
Composition of Income Tax Expense (Benefit)	The composition of income tax expense (benefit) is as follows: 2022 2021 2020 Current: Federal $ 11 $ — $ (36) Foreign 51 59 54 State 1 1 (7) Total current tax expense 63 60 11 Deferred: Federal (20) (11) (6) Foreign (36) (136) (116) State (1) (1) 8 Total deferred tax benefit (57) (148) (114) Income tax expense (benefit) $ 6 $ (88) $ (103)
Schedule of Significant Components of Deferred Tax Assets and Liabilities	Significant components of our deferred tax assets and liabilities as of December 31 are as follows: 2022 2021 Deferred tax assets: Compensation and benefits $ 32 $ 58 Accruals and reserves 54 41 Tax credit carryovers 53 53 Tax loss carryovers 329 311 Business interest deduction limitation 120 55 Inventories 30 18 Restructuring and other reserves 13 31 R&D capitalized assets 42 — Operating lease liabilities 34 42 Other assets 13 34 Total gross deferred tax assets 720 643 Valuation allowances (228) (182) Total deferred tax assets 492 461 Deferred tax liabilities: Right-of-use assets (34) (42) Intangibles (920) (995) Property and equipment (70) (80) Cash flow hedge deferred gain (42) — Other liabilities (6) — Total deferred tax liabilities (1,072) (1,117) Deferred tax liabilities - net $ (580) $ (656)
Schedule of Movements in the Valuation Allowance	Movements in the valuation allowance are summarized as follows: 2022 2021 January 1 $ (182) $ (100) Increase (49) (88) Release 3 6 December 31 $ (228) $ (182)
Schedule of Cash Payments of Interest Expense and Income Taxes	Cash payments for interest during the years ended December 31 were as follows: 2022 2021 2020 Interest paid $ 266 $ 221 $ 131 Cash payments of income taxes were as follows: 2022 2021 2020 Cash payments of income taxes $ 93 $ 151 $ 97
Summary of Prepaid Taxes	Income taxes receivable included in prepaid expenses and other on our consolidated balance sheets as of December 31 were as follows: 2022 2021 2020 Income taxes receivable $ 180 $ 130 $ 116 Amounts recognized in the consolidated balance sheet consisted of: Other noncurrent assets $ 2 $ — Other current liabilities — (1) Accrued retirement benefits (150) (254) Accumulated other comprehensive income before income taxes (112) (21) Net amount recognized $ (260) $ (276)
Reconciliation of Income Tax Expense (Benefit)	The following is a reconciliation of the income tax expense (benefit) applying the U.S. federal statutory rate to income before income taxes to reported income tax expense: 2022 2021 2020 Income tax benefit at the U.S. federal statutory tax rate $ (15) $ (120) $ (143) Add (deduct): Taxation of international operations (27) (16) (15) State taxes (11) (8) (10) Income tax credits (13) (14) (24) Non-deductible employee compensation 7 4 1 Other permanent adjustments (2) (8) 23 Change in uncertain tax positions 3 (2) (7) Change in valuation allowance 80 76 72 Brazil receivable (16) — — Income tax expense (benefit) $ 6 $ (88) $ (103)
Schedule of Gross Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: 2022 2021 2020 Beginning balance at January 1 $ 6 $ 3 $ 8 Additions based on tax positions related to the current year 3 — — Changes for tax positions of prior years — (1) (2) Additions related to acquisition 7 4 — Settlements — — (3) Ending balance at December 31 $ 16 $ 6 $ 3

Geographic Information (Tables)

Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Revenue by Selected Geographic Area Information	Selected geographic area information was as follows: 2022 2021 2020 United States $ 1,965 $ 2,124 $ 1,475 International 2,446 2,640 1,796 Revenue $ 4,411 $ 4,764 $ 3,271

Retirement Benefits (Tables)

Retirement Benefits (Tables)	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Schedule of Change in Benefit Obligation, Change in Plan Assets, and Funded Status	We use a measurement date of December 31 to develop the change in benefit obligation, change in plan assets, funded status and amounts recorded on the consolidated balance sheets at December 31 for our defined benefit pension plans, which were as follows: 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 462 $ 560 Service cost 14 18 Interest cost 4 2 Actuarial gain (123) (25) Benefits paid (12) (4) Plan amendments (1) — Curtailment gain — (19) Settlements (1) (38) Foreign currency exchange rate changes and other adjustments (19) (32) Benefit obligation at end of year 324 462 Change in plan assets: Fair value of plan assets at beginning of year 207 234 Actual return on plan assets (26) 13 Employer contribution 12 12 Benefits paid (12) (4) Settlements (1) (38) Foreign currency exchange rate changes and other adjustments (5) (10) Fair value of plan assets at end of year 175 207 Funded status (148) (255) Unrecognized net actuarial (gain) loss (82) 13 Unrecognized prior service cost (30) (34) Net amount recognized $ (260) $ (276)
Schedule of Amounts Recognized in Combined Balance Sheet	Income taxes receivable included in prepaid expenses and other on our consolidated balance sheets as of December 31 were as follows: 2022 2021 2020 Income taxes receivable $ 180 $ 130 $ 116 Amounts recognized in the consolidated balance sheet consisted of: Other noncurrent assets $ 2 $ — Other current liabilities — (1) Accrued retirement benefits (150) (254) Accumulated other comprehensive income before income taxes (112) (21) Net amount recognized $ (260) $ (276)
Schedule of Weighted-Average Assumptions Related to Pension Plans	The following represents our weighted-average assumptions related to these pension plans as of December 31: (Percentages) 2022 2021 2020 Discount rate for benefit obligation 3.4 % 1.1 % 0.6 % Discount rate for net benefit costs 1.1 0.6 0.6 Rate of compensation increase for benefit obligation 3.0 2.7 3.1 Rate of compensation increase for net benefit costs 2.7 3.1 2.3 Expected return on plan assets for net benefit costs 3.1 2.9 3.2
Schedule of Expected Benefit Payments	The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: 2023 2024 2025 2026 2027 2027-2031 Benefit payments $ 12 $ 13 $ 14 $ 14 $ 16 $ 85
Schedule of Projected Benefit Obligations in Excess of Plan Assets	Amounts relating to these pension plans with projected benefit obligations in excess of plan assets were as follows at December 31: 2022 2021 Projected benefit obligation $ 301 $ 455 Fair value of plan assets 150 200
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets	Amounts relating to these defined benefit pension plans with accumulated benefit obligations in excess of plan assets were as follows at December 31: 2022 2021 Accumulated benefit obligation $ 289 $ 441 Fair value of plan assets 146 200
Summary of Net Pension Expense (Benefit)	Net pension expense (benefit) related to our defined benefit pension plans included the following components: 2022 2021 2020 Service cost $ 14 $ 18 $ 14 Interest cost 4 2 2 Expected return on plan assets (6) (6) (6) Amortization of prior service cost (5) (6) (8) Amortization of net actuarial loss 1 2 3 Net curtailments and settlements (Note 7) — (29) — Net pension expense (benefit) $ 8 $ (19) $ 5
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	The following represents the pre-tax amounts recognized for these plans in other comprehensive income (loss): 2022 2021 2020 Actuarial gain (loss) arising during period $ 92 $ 29 $ (18) Prior year service cost during the year 1 — — Amortization of prior service cost, including settlements, in net loss (5) (36) (8) Amortization of net actuarial loss, including curtailments, in net loss 1 22 3 Foreign currency exchange rate changes and other 1 — 1 Total other comprehensive income (loss) during period $ 90 $ 15 $ (22)
Schedule of Fair Value of Pension Plan Assets	The fair values of these pension plan assets as of December 31, 2022 by asset category are as follows: Fair Value Measurements Using Asset Class Total Quoted Prices in Active Markets for Identical Assets Significant Observable Significant Unobservable Inputs Investments Valued at NAV (1) Public equity securities $ 49 $ 47 $ — $ — $ 2 Fixed income: Developed markets 64 63 — — 1 Emerging markets 9 9 — — — Real estate 23 17 6 — — Other 30 25 5 — — Total $ 175 $ 161 $ 11 $ — $ 3 (1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair values of these pension plan assets as of December 31, 2021 by asset category are as follows: Fair Value Measurements Using Asset Class Total Quoted Prices in Active Markets for Identical Assets Significant Observable Significant Unobservable Inputs Investments Valued at NAV (1) Public equity securities $ 63 $ 60 $ — $ — $ 3 Fixed income: Developed markets 76 75 — — 1 Emerging markets 11 11 — — — Real estate 26 21 5 — — Other 31 26 5 — — Total $ 207 $ 193 $ 10 $ — $ 4 (1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
Schedule of Multiemployer Plan	Contributions made to the multi-employer plan are expensed as incurred and were as follows: 2022 2021 Bayer-Pensionskasse $ 2 $ 3 Rheinische-Pensionskasse 1 1 Total $ 3 $ 4

Loss Per Share (Tables)

Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Basic And Diluted Loss	Basic and diluted loss per share are calculated as follows: 2022 2021 2020 Net loss available to common shareholders $ (78) $ (483) $ (574) Determination of shares: Weighted average common shares outstanding 488.3 487.2 441.4 Assumed conversion of dilutive common stock equivalents (1) — — — Diluted weighted average shares outstanding 488.3 487.2 441.4 Loss per share (2) Basic $ (0.16) $ (0.99) $ (1.30) Diluted $ (0.16) $ (0.99) $ (1.30) (1) During the years ended December 31, 2022, 2021 and 2020, we reported a net loss. Therefore, dilutive common stock equivalents are not assumed to have been issued since their effect is anti-dilutive. As a result, basic and diluted weighted average shares are the same, causing diluted net loss per share to be equivalent to basic net loss per share. For the years ended December 31, 2022, 2021 and 2020, approximately 3.3 million, 3.2 million and 4.1 million, respectively, of potential common shares were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. (2) Due to rounding conventions, earnings (loss) per share may not recalculate precisely based on the amounts presented within this table.

Selected Quarterly Data (unau_2

Selected Quarterly Data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]
Schedule of Selected Quarterly Data	Condensed Consolidated Statements of Operations Three Months Ended March 31, 2022 Three Months Ended June 30, 2022 Three Months Ended September 30, 2022 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,225 $ 1 $ 1,226 $ 1,177 $ (2) $ 1,175 $ 1,028 $ (2) $ 1,026 Marketing, selling and administrative 320 2 322 343 — 343 298 — 298 Asset impairment, restructuring and other special charges 46 (6) 40 86 — 86 26 — 26 Other (income) expense, net 9 — 9 — (6) (6) 8 — 8 Income (loss) before income taxes 71 4 75 (18) 4 (14) (42) (2) (44) Income tax expense (benefit) 23 1 24 4 (8) (4) 7 14 21 Net income (loss) 48 3 51 (22) 12 (10) (49) (16) (65) Earnings (loss) per share: Basic $ 0.10 — $ 0.10 $ (0.04) 0.02 $ (0.02) $ (0.10) (0.03) $ (0.13) Diluted $ 0.10 — $ 0.10 $ (0.04) 0.02 $ (0.02) $ (0.10) (0.03) $ (0.13) Weighted average shares outstanding: Basic 488.0 488.0 488.0 488.4 488.4 488.4 488.4 488.4 488.4 Diluted 492.2 492.2 492.2 488.4 488.4 488.4 488.4 488.4 488.4 Amounts presented may not recalculate in total due to rounding. Three Months Ended March 31, 2021 Three Months Ended June 30, 2021 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,242 $ 1 $ 1,243 $ 1,279 $ (1) $ 1,278 Cost of sales 569 (3) 566 551 — 551 Marketing, selling and administrative 348 1 349 385 — 385 Asset impairment, restructuring and other special charges 108 — 108 299 6 305 Interest expense, net of capitalized interest 61 — 61 60 — 60 Income (loss) before income taxes (80) 3 (77) (236) (7) (243) Income tax expense (benefit) (19) 6 (13) (26) (11) (37) Net income (loss) (61) (3) (64) (210) 4 (206) Earnings (loss) per share: Basic $ (0.12) (0.01) $ (0.13) $ (0.43) 0.01 $ (0.42) Diluted $ (0.12) (0.01) $ (0.13) $ (0.43) 0.01 $ (0.42) Weighted average shares outstanding: Basic 486.7 486.7 486.7 487.3 487.3 487.3 Diluted 486.7 486.7 486.7 487.3 487.3 487.3 Amounts presented may not recalculate in total due to rounding. Three Months Ended September 30, 2021 Three Months Ended December 31, 2021 As Reported Revisions As Revised As Reported Revisions As Revised Revenue $ 1,131 $ — $ 1,131 $ 1,113 $ (1) $ 1,112 Marketing, selling and administrative 342 — 342 329 (2) 327 Income (loss) before income taxes (130) — (130) (121) 1 (120) Income tax expense (benefit) (26) 4 (22) (24) 9 (15) Net loss (104) (4) (108) (97) (8) (105) Loss per share: Basic $ (0.21) (0.01) $ (0.22) $ (0.20) (0.02) $ (0.22) Diluted $ (0.21) (0.01) $ (0.22) $ (0.20) (0.02) $ (0.22) Weighted average shares outstanding: Basic 487.3 487.3 487.3 487.4 487.4 487.4 Diluted 487.3 487.3 487.3 487.4 487.4 487.4 Amounts presented may not recalculate in total due to rounding. Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2022 Six Months Ended June 30, 2022 Nine Months Ended September 30, 2022 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Net income (loss) $ 48 $ 3 $ 51 $ 26 $ 15 $ 41 $ (23) $ (1) $ (24) Deferred income taxes (11) 4 (7) (40) 6 (34) (36) 8 (28) Asset impairment and write-down charges 28 (6) 22 87 (6) 81 87 (6) 81 Changes in operating assets and liabilities (331) (1) (332) (369) (15) (384) (384) (1) (385) Year-to-date amounts presented in the table above may not equal the sum of quarter-to-date amounts due to rounding. Three Months Ended March 31, 2021 Six Months Ended June 30, 2021 Nine Months Ended September 30, 2021 As Reported Revisions As Revised As Reported Revisions As Revised As Reported Revisions As Revised Net loss $ (61) $ (3) $ (64) $ (271) $ — $ (271) $ (375) $ (3) $ (378) Deferred income taxes (32) 4 (28) (114) (6) (120) (119) (3) (122) Asset impairment and write-down charges 9 — 9 278 6 284 334 6 340 Changes in operating assets and liabilities (183) (1) (184) (190) — (190) (243) — (243) Year-to-date amounts presented in the table above may not equal the sum of quarter-to-date amounts due to rounding.

Background (Details)

Background (Details)	Dec. 31, 2022 country
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of brands in diverse portfolio (approximately)	200
Number of countries in which entity operates (more than)	90

Revision of Previously Issued_3

Revision of Previously Issued Consolidated Financial Statements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended			24 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Jan. 01, 2020	Dec. 31, 2019
Income tax expense (benefit)	$ 21	$ (4)	$ 24	$ (15)	$ (22)	$ (37)	$ (13)	$ 6	$ (88)	$ (103)
Total equity				7,508				$ 7,289	7,508	8,457	$ 7,508		$ 5,543
Revisions
Income tax expense (benefit)	$ 14	$ (8)	$ 1	9	$ 4	$ (11)	$ 6		7	9
Total equity				$ (30)					(30)		(30)	$ 4
Revisions | Southeast Asia
Income tax expense (benefit)									$ 14	$ 6	$ 20

Revision of Previously Issued_4

Revision of Previously Issued Consolidated Financial Statements - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue	$ 1,026	$ 1,175	$ 1,226	$ 1,112	$ 1,131	$ 1,278	$ 1,243					$ 4,411	$ 4,764	$ 3,271
Cost of sales						551	566					1,913	2,132	1,667
Research and development												321	369	329
Marketing, selling and administrative	298	343	322	327	342	385	349					1,265	1,403	997
Asset impairment, restructuring and other special charges	26	86	40			305	108					183	634	623
Loss before income taxes	(44)	(14)	75	(120)	(130)	(243)	(77)					(72)	(571)	(677)
Income tax expense (benefit)	21	(4)	24	(15)	(22)	(37)	(13)					6	(88)	(103)
Net loss	$ (65)	$ (10)	$ 51	$ (105)	$ (108)	$ (206)	$ (64)	$ 41	$ (271)	$ (24)	$ (378)	$ (78)	$ (483)	$ (574)
Loss per share:
Basic (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Diluted (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7					488.3	487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7					488.3	487.2	441.4
As Reported
Revenue	$ 1,028	$ 1,177	$ 1,225	$ 1,113	$ 1,131	$ 1,279	$ 1,242						$ 4,765	$ 3,273
Cost of sales						551	569						2,134	1,667
Research and development													369	327
Marketing, selling and administrative	298	343	320	329	342	385	348						1,404	996
Asset impairment, restructuring and other special charges	26	86	46			299	108						628	623
Loss before income taxes	(42)	(18)	71	(121)	(130)	(236)	(80)						(567)	(672)
Income tax expense (benefit)	7	4	23	(24)	(26)	(26)	(19)						(95)	(112)
Net loss	$ (49)	$ (22)	$ 48	$ (97)	$ (104)	$ (210)	$ (61)	26	(271)	(23)	(375)		$ (472)	$ (560)
Loss per share:
Basic (usd per share)	$ (0.10)	$ (0.04)	$ 0.10	$ (0.20)	$ (0.21)	$ (0.43)	$ (0.12)						$ (0.97)	$ (1.27)
Diluted (usd per share)	$ (0.10)	$ (0.04)	$ 0.10	$ (0.20)	$ (0.21)	$ (0.43)	$ (0.12)						$ (0.97)	$ (1.27)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7						487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7						487.2	441.4
Revisions
Revenue	$ (2)	$ (2)	$ 1	$ (1)	$ 0	$ (1)	$ 1						$ (1)	$ (2)
Cost of sales						0	(3)						(2)	0
Research and development													0	2
Marketing, selling and administrative	0	0	2	(2)	0	0	1						(1)	1
Asset impairment, restructuring and other special charges	0	0	(6)			6	0						6	0
Loss before income taxes	(2)	4	4	1	0	(7)	3						(4)	(5)
Income tax expense (benefit)	14	(8)	1	9	4	(11)	6						7	9
Net loss	$ (16)	$ 12	$ 3	$ (8)	$ (4)	$ 4	$ (3)	$ 15	$ 0	$ (1)	$ (3)		$ (11)	$ (14)
Loss per share:
Basic (usd per share)	$ (0.03)	$ 0.02	$ 0	$ (0.02)	$ (0.01)	$ 0.01	$ (0.01)						$ (0.02)	$ (0.03)
Diluted (usd per share)	$ (0.03)	$ 0.02	$ 0	$ (0.02)	$ (0.01)	$ 0.01	$ (0.01)						$ (0.02)	$ (0.03)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7						487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7						487.2	441.4

Revision of Previously Issued_5

Revision of Previously Issued Consolidated Financial Statements - Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Current Assets
Inventories	$ 1,538	$ 1,371
Total current assets	3,279	3,274
Noncurrent Assets
Other noncurrent assets	378	390
Property and equipment, net	999	1,055
Total assets	15,491	16,478
Current Liabilities
Accounts payable	390	416
Sales rebates and discounts	324	319
Other current liabilities	454	433
Total current liabilities	1,702	1,647
Noncurrent Liabilities
Deferred taxes	662	765
Other noncurrent liabilities	229	262
Total liabilities	8,202	8,970
Equity
Accumulated deficit	(1,057)	(979)
Total equity	7,289	7,508	$ 8,457		$ 5,543
Total liabilities and equity	$ 15,491	16,478
As Reported
Current Assets
Inventories		1,373
Total current assets		3,276
Noncurrent Assets
Other noncurrent assets		387
Property and equipment, net		1,061
Total assets		16,483
Current Liabilities
Accounts payable		418
Sales rebates and discounts		316
Other current liabilities		430
Total current liabilities		1,643
Noncurrent Liabilities
Deferred taxes		745
Other noncurrent liabilities		261
Total liabilities		8,945
Equity
Accumulated deficit		(949)
Total equity		7,538
Total liabilities and equity		16,483
Revisions
Current Assets
Inventories		(2)
Total current assets		(2)
Noncurrent Assets
Other noncurrent assets		3
Property and equipment, net		(6)
Total assets		(5)
Current Liabilities
Accounts payable		(2)
Sales rebates and discounts		3
Other current liabilities		3
Total current liabilities		4
Noncurrent Liabilities
Deferred taxes		20
Other noncurrent liabilities		1
Total liabilities		25
Equity
Accumulated deficit		(30)
Total equity		(30)		$ 4
Total liabilities and equity		$ (5)

Revision of Previously Issued_6

Revision of Previously Issued Consolidated Financial Statements - Consolidated Statements of Equity (Details) - USD ($) $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			$ 7,508				$ 8,457	$ 7,508	$ 8,457	$ 7,508	$ 8,457	$ 7,508	$ 8,457	$ 5,543
Net loss available to common shareholders	$ (65)	$ (10)	51	$ (105)	$ (108)	$ (206)	(64)	41	(271)	(24)	(378)	(78)	(483)	(574)
Stock-based compensation												58	66	47
Balance at end of period				7,508								7,289	7,508	8,457
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			8,696				8,650	8,696	8,650	8,696	8,650	8,696	8,650	5,637
Net loss available to common shareholders													0	0
Stock-based compensation												58	66	47
Balance at end of period				8,696								8,738	8,696	8,650
Retained Earnings (Accumulated Deficit)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			(979)				(496)	(979)	(496)	(979)	(496)	(979)	(496)	79
Net loss available to common shareholders												(78)	(483)	(574)
Stock-based compensation														0
Balance at end of period				(979)								(1,057)	(979)	(496)
As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			7,538					7,538		7,538		7,538
Net loss available to common shareholders	(49)	(22)	48	(97)	(104)	(210)	(61)	26	(271)	(23)	(375)		(472)	(560)
Balance at end of period				7,538									7,538
As Reported | Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			8,696				8,650	8,696	8,650	8,696	8,650	8,696	8,650	5,636
Net loss available to common shareholders													0	0
Stock-based compensation														48
Balance at end of period				8,696									8,696	8,650
As Reported | Retained Earnings (Accumulated Deficit)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			(949)				(477)	(949)	(477)	(949)	(477)	(949)	(477)	84
Net loss available to common shareholders													(472)	(560)
Stock-based compensation														0
Balance at end of period				(949)									(949)	(477)
Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			(30)					(30)		(30)		(30)
Net loss available to common shareholders	$ (16)	$ 12	3	(8)	$ (4)	$ 4	(3)	15	0	(1)	(3)		(11)	(14)
Balance at end of period				(30)									(30)
Revisions | Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			0				0	0	0	0	0	0	0	1
Net loss available to common shareholders													0	0
Stock-based compensation														(1)
Balance at end of period				0									0	0
Revisions | Retained Earnings (Accumulated Deficit)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			$ (30)				$ (19)	$ (30)	$ (19)	$ (30)	$ (19)	$ (30)	(19)	(5)
Net loss available to common shareholders													(11)	(14)
Stock-based compensation														0
Balance at end of period				$ (30)									$ (30)	$ (19)

Revision of Previously Issued_7

Revision of Previously Issued Consolidated Financial Statements - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net income (loss)	$ (65)	$ (10)	$ 51	$ (105)	$ (108)	$ (206)	$ (64)	$ 41	$ (271)	$ (24)	$ (378)	$ (78)	$ (483)	$ (574)
Deferred income taxes			(7)				(28)	(34)	(120)	(28)	(122)	(57)	(148)	(114)
Stock-based compensation expense												59	66	47
Asset impairment and write-down charges			22				9	81	284	81	340	81	345	25
Receivables												14	(35)	24
Inventories												(269)	29	(95)
Other assets												(109)	25	(122)
Accounts payable and other liabilities												$ (98)	(116)	362
As Reported
Net income (loss)	(49)	(22)	48	(97)	(104)	(210)	(61)	26	(271)	(23)	(375)		(472)	(560)
Deferred income taxes			(11)				(32)	(40)	(114)	(36)	(119)		(154)	(125)
Stock-based compensation expense													66	48
Asset impairment and write-down charges			28				9	87	278	87	334		339	25
Receivables													(25)	14
Inventories													27	(95)
Other assets													22	(123)
Accounts payable and other liabilities													(120)	369
Revisions
Net income (loss)	$ (16)	$ 12	3	$ (8)	$ (4)	$ 4	(3)	15	0	(1)	(3)		(11)	(14)
Deferred income taxes			4				4	6	(6)	8	(3)		6	11
Stock-based compensation expense													0	(1)
Asset impairment and write-down charges			$ (6)				$ 0	$ (6)	$ 6	$ (6)	$ 6		6	0
Receivables													(10)	10
Inventories													2	0
Other assets													3	1
Accounts payable and other liabilities													$ 4	$ (7)

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Rebate period	6 months
Advertising and promotion expenses	$ 201	$ 248
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term	30 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payment term	120 days

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Revenue	$ 4,411	$ 4,764
Pet Health
Concentration Risk [Line Items]
Revenue	2,138	2,350	$ 1,356
Farm Animal
Concentration Risk [Line Items]
Revenue	2,219	2,332	1,835
Contract Manufacturing
Concentration Risk [Line Items]
Revenue	$ 54	$ 82	$ 80
Geographic Concentration Risk | Sales rebates and discounts, liability | United States
Concentration Risk [Line Items]
Concentration risk	77%	74%
Product Return Concentration Risk | Net revenue | Global Customers
Concentration Risk [Line Items]
Concentration risk	1%	1%	1%

Revenue - Summary of Activity i

Revenue - Summary of Activity in Sales Rebates and Discounts Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Change In Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 319	$ 297
Reduction of revenue	682	674
Payments	(662)	(645)
Foreign currency translation adjustments	(15)	(7)
Ending balance	$ 324	$ 319

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 4,411	$ 4,764
Pet Health
Disaggregation of Revenue [Line Items]
Revenue	2,138	2,350	$ 1,356
Farm Animal
Disaggregation of Revenue [Line Items]
Revenue	2,219	2,332	1,835
Cattle
Disaggregation of Revenue [Line Items]
Revenue	944	980
Poultry
Disaggregation of Revenue [Line Items]
Revenue	716	744
Swine
Disaggregation of Revenue [Line Items]
Revenue	384	464
Aqua
Disaggregation of Revenue [Line Items]
Revenue	175	144
Contract Manufacturing
Disaggregation of Revenue [Line Items]
Revenue	$ 54	$ 82	$ 80

Acquisitions, Divestitures an_3

Acquisitions, Divestitures and Other Arrangements - Narrative (Details) $ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Jan. 22, 2023 USD ($) installment

Dec. 17, 2022 USD ($) installment

Aug. 27, 2021 USD ($) $ / shares

Aug. 01, 2021 USD ($)

Aug. 01, 2020 USD ($) $ / shares

Mar. 31, 2023 USD ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2021 USD ($) employee

Dec. 31, 2020 USD ($)

Jun. 30, 2022 USD ($)

Feb. 01, 2022 USD ($)

May 31, 2021 USD ($)

Business Acquisition [Line Items]

Revenue

$ 4,411

$ 4,764

Increase to goodwill

3

207

Contract with customer, asset, before allowance for credit loss

$ 55

Divestiture proceeds

13

0

$ 435

Gain (loss) on disposition of business

3

(1)

170

Finite-lived intangible assets

4,477

5,218

Liabilities

8,202

$ 8,970

Variable Interest Entity, Primary Beneficiary | BexCaFe, LLC

Business Acquisition [Line Items]

Liabilities

$ 59

Payment on agreement

10

Variable Interest Entity, Primary Beneficiary | BexCaFe, LLC | Scenario, Forecast

Business Acquisition [Line Items]

Payment on agreement

$ 13

Variable Interest Entity, Primary Beneficiary | BexCaFe, LLC | Future Milestone Payments And Sales Royalties

Business Acquisition [Line Items]

Liabilities

49

49

Disposal group

Business Acquisition [Line Items]

Number of employees transferred | employee

600

Divestiture proceeds

435

Gain (loss) on disposition of business

156

Divestiture transaction costs

13

Disposal group | Rights To The Profender And Drontal | Marketed products

Business Acquisition [Line Items]

Assets held for sale

$ 133

Disposal group | Rights To The Profender And Drontal | Inventories

Business Acquisition [Line Items]

Assets held for sale

$ 5

Disposal group | Microbiome R&D Platform Carve-Out

Business Acquisition [Line Items]

Gain on disposal

3

Disposal group | Shawnee

Business Acquisition [Line Items]

Cash received in agreement to divest

$ 78

Duration over which proceeds will be received

3 years

Divestiture proceeds

13

NutriQuest U.S. Assets Acquisition

Business Acquisition [Line Items]

Asset purchase agreement, consideration

$ 19

Number of installments | installment

2

Cash consideration

$ 85

NutriQuest Brazil Assets Acquisition | Subsequent Event

Business Acquisition [Line Items]

Asset purchase agreement, consideration

$ 24

Number of installments | installment

2

Acquired in-process research and development | Variable Interest Entity, Primary Beneficiary | BexCaFe, LLC

Business Acquisition [Line Items]

Finite-lived intangible assets

$ 59

Marketed products

Business Acquisition [Line Items]

Finite-lived intangible assets

$ 4,286

$ 4,991

Acquired in-process research and development | Disposal group | Rights To The Profender And Drontal

Business Acquisition [Line Items]

Gain (loss) on disposition of business

7

KindredBio

Business Acquisition [Line Items]

Common stock price (in dollars per share) | $ / shares

$ 9.25

Aggregate cash purchase consideration

$ 444

Settlement of liability related to previous license agreement

$ 29

Transaction costs

6

KindredBio | Acquired in-process research and development

Business Acquisition [Line Items]

Intangible assets, primarily acquired in-process research and development (IPR&D)

$ 333

Bayer Animal Business

Business Acquisition [Line Items]

Common stock price (in dollars per share) | $ / shares

$ 23.64

Aggregate cash purchase consideration

$ 5,054

Transaction costs

3

267

Revenue

$ 592

Intangible asset adjustment

210

Property, plant, and equipment, adjustments

32

Working capital and other adjustment

26

Increase to goodwill

$ 207

Inventories

487

Business combination, inventories, step-up fair value adjustment

152

Intangible assets, primarily acquired in-process research and development (IPR&D)

65

Marketed products

$ 3,740

Average useful life

10 years

Assets held for sale

$ 138

Bayer Animal Business | Marketed products

Business Acquisition [Line Items]

Marketed products

3,740

Bayer Animal Business | Acquired in-process research and development

Business Acquisition [Line Items]

Intangible assets, primarily acquired in-process research and development (IPR&D)

65

Bayer Animal Business | Finished Products

Business Acquisition [Line Items]

Inventories

311

Bayer Animal Business | in Process

Business Acquisition [Line Items]

Inventories

81

Bayer Animal Business | Raw Materials

Business Acquisition [Line Items]

Inventories

$ 95

Acquisitions, Divestitures an_4

Acquisitions, Divestitures and Other Arrangements - Summary of Amounts Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Aug. 27, 2021	Dec. 31, 2020	Aug. 01, 2020
Business Acquisition [Line Items]
Goodwill	$ 5,993	$ 6,172		$ 6,225
KindredBio
Business Acquisition [Line Items]
Cash and cash equivalents			$ 31
Other net working capital			13
Property and equipment			33
Deferred income taxes, net			(30)
Total identifiable net assets			380
Goodwill			35
Settlement of liability related to previous license agreement			29
Total consideration transferred			444
KindredBio | Acquired in-process research and development
Business Acquisition [Line Items]
Intangible assets, primarily acquired in-process research and development (IPR&D)			$ 333
Bayer Animal Business
Business Acquisition [Line Items]
Cash and cash equivalents					$ 169
Property and equipment					315
Intangible assets, primarily acquired in-process research and development (IPR&D)					65
Accounts receivable					10
Inventories					487
Prepaid expenses and other current assets					60
Marketed products					3,740
Assets held for sale					138
Accounts payable and accrued liabilities					(237)
Accrued retirement benefits					(220)
Other noncurrent assets and liabilities - net					(878)
Total identifiable net assets					3,649
Goodwill					3,129
Total consideration transferred					6,778
Bayer Animal Business | Marketed products
Business Acquisition [Line Items]
Marketed products					3,740
Bayer Animal Business | Acquired in-process research and development
Business Acquisition [Line Items]
Intangible assets, primarily acquired in-process research and development (IPR&D)					$ 65

Acquisitions, Divestitures an_5

Acquisitions, Divestitures and Other Arrangements - Purchase Consideration (Details) $ / shares in Units, shares in Millions, $ in Millions	Aug. 01, 2020 USD ($) $ / shares shares
Business Acquisition [Line Items]
Payments to acquire businesses, before working capital adjustment	$ 5,170
Working capital adjustments	116
Bayer Animal Business
Business Acquisition [Line Items]
Cash consideration	5,054
Fair value of Elanco common stock	1,724
Fair value of total consideration transferred	$ 6,778
Number of shares issued to previous shareholders upon closing (in shares) | shares	73
Common stock price (in dollars per share) | $ / shares	$ 23.64
Fair value used in estimate	$ 2,300
Volume weighted average stock price as of the last day of trading before the closing of the acquisition duration	20 days
Symmetrical collar (as a percent)	7.50%
Volume weighted average price for thirty trading days (usd per share) | $ / shares	$ 33.60

Acquisitions, Divestitures an_6

Acquisitions, Divestitures and Other Arrangements -Pro forma financial information (Details) - Bayer Animal Business $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Revenue	$ 4,439
Loss before income taxes	$ (680)

Acquisitions, Divestitures an_7

Acquisitions, Divestitures and Other Arrangements - Assets and Liabilities Held for Sale (Details) - Worldwide rights to Osurnia and U.S. rights to Capstar - Held for Sale $ in Millions	Dec. 31, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventories	$ 31
Property and equipment, net	50
Total assets held for sale	$ 81

Asset Impairment, Restructuri_3

Asset Impairment, Restructuring and Other Special Charges - Additional Information (Details) $ in Millions	1 Months Ended			12 Months Ended
	Nov. 30, 2021 position	Jan. 31, 2021 position	Sep. 30, 2020 country position	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) restructuring_program	Dec. 31, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Number of restructuring programs announced | restructuring_program						2
Restructuring, expected payment term					12 months
Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Cash paid				$ 29
January 2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | position		315
Restructuring costs						$ 43
November 2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | position	380
Restructuring costs						86
Restructuring reserve, accrual adjustment					$ 9
Bayer Animal Business
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | position			900
Restructuring reserve, accrual adjustment						$ 15	$ 162
Number of countries expected to eliminate positions | country			40

Asset Impairment, Restructuri_4

Asset Impairment, Restructuring and Other Special Charges - Total Charges Related to Asset Impairment, Restructuring and Other Special Charges (Details) - USD ($) $ in Millions	3 Months Ended					12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring charges (credits):
Severance and other costs (credits)						$ (9)	$ 110	$ 155
Facility exit costs (credits)						2	0	(3)
Transaction and integration costs						105	162	424
Non-cash and other items:
Asset impairment						60	66	17
Asset write-down						21	284	19
Gain on sale of fixed assets						0	0	(4)
Net periodic benefit income						0	(29)	0
Settlements and other						4	41	15
Total expense	$ 26	$ 86	$ 40	$ 305	$ 108	183	634	$ 623
Litigation settlement charges							$ 10
KindredBio
Non-cash and other items:
Measurement period adjustment related to settlement of preexisting liability						2
Variable Interest Entity, Primary Beneficiary | BexCaFe, LLC | Acquired in-process research and development
Non-cash and other items:
Asset impairment						$ 59

Asset Impairment, Restructuri_5

Asset Impairment, Restructuring and Other Special Charges - Activity in Reserves (Details) - Severance - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 126	$ 130
Charges	0	126
Reserve adjustment	(9)	(16)
Cash paid	(79)	(111)
Foreign currency translation adjustments	(2)	(3)
Balance at end of period	$ 36	$ 126

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished products	$ 725	$ 598
Work in process	605	565
Raw materials and supplies	266	254
Total	1,596	1,417
Decrease to LIFO cost	(58)	(46)
Inventories	$ 1,538	$ 1,371

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventories valued under the LIFO method	$ 288	$ 260

Equity - Narrative (Details)

Equity - Narrative (Details)			1 Months Ended
	Jan. 23, 2020 USD ($) shares	Jan. 22, 2020 USD ($) $ / shares shares	Jan. 31, 2020 USD ($) tradingDay $ / shares shares	Feb. 01, 2023 $ / shares shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Class of Stock [Line Items]
Number of shares sold in public offering (in shares)	25,000,000
Total cash received upon sale closing | $	$ 768,000,000
Net proceeds | $					$ 5,836,000,000	$ 6,319,000,000
Tangible Equity Unit
Class of Stock [Line Items]
Number of shares sold in public offering (in shares)		11,000,000	11,000,000
Offering price (usd per share) | $ / shares		$ 50	$ 50
Total cash received upon sale closing | $		$ 528,000,000	$ 528,000,000
Additional dilutive shares (in shares)			3,000,000
Tangible Equity Unit | Subsequent Event
Class of Stock [Line Items]
Settlement rate				156.25%
Tangible Equity Unit | Minimum
Class of Stock [Line Items]
Shares issued upon conversion of prepaid stock purchase contracts (in shares)			14,000,000
Average applicable market value necessary to be included in calculation of diluted shares outstanding (usd per share) | $ / shares			$ 32
Settlement rate			130.21%
Tangible Equity Unit | Maximum
Class of Stock [Line Items]
Shares issued upon conversion of prepaid stock purchase contracts (in shares)			17,000,000
Average applicable market value necessary to be included in calculation of diluted shares outstanding (usd per share) | $ / shares			$ 38.40
Settlement rate			156.25%
Tangible Equity Unit | Maximum | Subsequent Event
Class of Stock [Line Items]
Average applicable market value necessary to be included in calculation of diluted shares outstanding (usd per share) | $ / shares				$ 32
TEU Amortizing Notes due 2023 | Senior Notes
Class of Stock [Line Items]
Interest rate on debt component		5%	5%
Number of consecutive trading days | tradingDay			20
2.75% Senior Amortizing Notes | Senior Notes
Class of Stock [Line Items]
Interest rate on debt component			2.75%
Net proceeds | $			$ 79,000,000
Quarterly cash installment per amortizing note | $			0.6250
Initial principal amount | $			7.2007
First installment payment per amortizing note | $			$ 0.6528
Common Stock Offering
Class of Stock [Line Items]
Number of shares sold in public offering (in shares)			23,000,000
Offering price (usd per share) | $ / shares			$ 32
Over-Allotment Option
Class of Stock [Line Items]
Number of shares sold in public offering (in shares)			2,000,000
Tangible Equity Unit
Class of Stock [Line Items]
Offering price (usd per share) | $ / shares			$ 50
Tangible Equity Unit | Subsequent Event
Class of Stock [Line Items]
Shares issued upon conversion of prepaid stock purchase contracts (in shares)				17,000,000

Equity - Schedule of Stockholde

Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions			1 Months Ended
	Jan. 23, 2020	Jan. 22, 2020	Jan. 31, 2020
Class of Stock [Line Items]
Net proceeds	$ 768
Equity Component
Class of Stock [Line Items]
Price per share (usd per share)			$ 42.80
Gross proceeds			$ 471
Less: Issuance costs			19
Net proceeds		$ 452	$ 452
Debt Component
Class of Stock [Line Items]
Price per share (usd per share)			$ 7.20
Gross proceeds			$ 79
Less: Issuance costs			3
Net proceeds		$ 76	$ 76
Tangible Equity Unit
Class of Stock [Line Items]
Price per share (usd per share)		$ 50	$ 50
Gross proceeds			$ 550
Less: Issuance costs			22
Net proceeds		$ 528	$ 528
Tangible Equity Unit | Minimum
Class of Stock [Line Items]
Applicable Market Value (usd per share)			$ 32
Settlement rate			130.21%
Tangible Equity Unit | Maximum
Class of Stock [Line Items]
Applicable Market Value (usd per share)			$ 38.40
Settlement rate			156.25%

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 24, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Apr. 30, 2022	Jan. 31, 2020	Jan. 22, 2020	Aug. 31, 2018
Debt Instrument [Line Items]
Long-term debt, gross		$ 5,900
Unamortized debt issuance costs		(64)	$ (82)
Total debt		5,836	6,319
Current portion of long-term debt		388	294
Total long-term debt		5,448	6,025
Proceeds from revolving credit facility		563	500	$ 0
Credit Facility | Secured Debt | Incremental Term Facility due 2025
Debt Instrument [Line Items]
Long-term debt, gross		175	0
Credit Facility | Secured Debt | Incremental Term Facility due 2028
Debt Instrument [Line Items]
Long-term debt, gross		494	499
Credit Facility | Secured Debt | Incremental Term Facility due 2029
Debt Instrument [Line Items]
Long-term debt, gross		249	0
Credit Facility | Term B Loan Facility
Debt Instrument [Line Items]
Long-term debt, gross		3,881	4,118
Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross		$ 0	250
Credit Facility | Revolving credit facility | Subsequent Event
Debt Instrument [Line Items]
Proceeds from revolving credit facility	$ 100
Senior Notes | 4.272% Senior Notes due 2023
Debt Instrument [Line Items]
Interest rate		4.272%			4.272%			4.272%
Long-term debt, gross		$ 344	750
Senior Notes | 4.900% Senior Notes due 2028
Debt Instrument [Line Items]
Interest rate		4.90%
Long-term debt, gross		$ 750	750
Senior Notes | TEU Amortizing Notes due 2023
Debt Instrument [Line Items]
Interest rate						5%	5%
Long-term debt, gross		$ 7	$ 34

Debt - Maturity of Long-Term De

Debt - Maturity of Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2023	$ 401
2024	50
2025	225
2026	50
2027	3,718
2028 and thereafter	1,456
Total obligations and commitments	5,900
Unamortized debt issuance costs	(64)
Total debt	$ 5,836	$ 6,319

Debt - Interest Paid (Details)

Debt - Interest Paid (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Interest paid	$ 266	$ 221	$ 131

Debt - Narrative (Details)

Debt - Narrative (Details)

1 Months Ended

12 Months Ended

Apr. 30, 2022 USD ($)

Aug. 12, 2021

Aug. 01, 2020 USD ($)

Jan. 23, 2020 USD ($) shares

Jan. 22, 2020 USD ($) $ / shares shares

Jun. 30, 2022 USD ($)

Apr. 30, 2022 USD ($)

Aug. 31, 2021 USD ($)

Sep. 30, 2020 USD ($)

Jan. 31, 2020 USD ($) $ / shares shares

Dec. 31, 2022 USD ($) covenant

Dec. 31, 2021 USD ($)

Dec. 31, 2020 USD ($)

Aug. 31, 2018 USD ($)

Debt Instrument [Line Items]

Proceeds from revolving credit facility

$ 563,000,000

$ 500,000,000

$ 0

Number of shares issued (in shares) | shares

25,000,000

Total net proceeds, after underwriting discounts and commissions

$ 768,000,000

Loss on extinguishment of debt

$ 20,000,000

$ 0

$ 3,000,000

Tangible Equity Unit

Debt Instrument [Line Items]

Number of shares issued (in shares) | shares

11,000,000

11,000,000

Price per share (usd per share) | $ / shares

$ 50

$ 50

Total net proceeds, after underwriting discounts and commissions

$ 528,000,000

$ 528,000,000

Equity Component

Debt Instrument [Line Items]

Price per share (usd per share) | $ / shares

$ 42.80

Total net proceeds, after underwriting discounts and commissions

452,000,000

$ 452,000,000

Debt Component

Debt Instrument [Line Items]

Price per share (usd per share) | $ / shares

$ 7.20

Total net proceeds, after underwriting discounts and commissions

76,000,000

$ 76,000,000

Senior Notes

Debt Instrument [Line Items]

Aggregate principal amount

$ 2,000,000,000

Senior Notes | 3.912% Senior Notes Due 2021

Debt Instrument [Line Items]

Aggregate principal amount

$ 500,000,000

Interest rate

3.912%

Senior Notes | 4.272% Senior Notes due 2023

Debt Instrument [Line Items]

Aggregate principal amount

$ 750,000,000

Interest rate

4.272%

4.272%

4.272%

4.272%

Amount of debt retired

$ 406,000,000

$ 406,000,000

Loss on extinguishment of debt

17,000,000

Senior Notes | 4.900% Senior Notes Due 2028

Debt Instrument [Line Items]

Aggregate principal amount

$ 750,000,000

Interest rate

4.90%

Senior Notes | TEU Amortizing Notes due 2023

Debt Instrument [Line Items]

Aggregate principal amount

$ 550,000,000

Interest rate

5%

5%

Payment of principal and interest

$ 28,000,000

Farm Credit Term Loan Facility | Credit Facility

Debt Instrument [Line Items]

Basis points

1.75%

Proceeds from revolving credit facility

$ 500,000,000

Term B Loan Facility | Credit Facility

Debt Instrument [Line Items]

Number of financial covenants | covenant

0

Loss on extinguishment of debt

$ 2,000,000

$ 3,000,000

Repayments of debt

$ 195,000,000

Repayments of long-term debt

$ 100,000,000

Revolving credit facility | Credit Facility

Debt Instrument [Line Items]

Credit facility, maximum borrowing capacity

$ 750,000,000

Debt maturity term

5 years

Number of financial covenants | covenant

2

Required EBITDA leverage ratio

7.71

Required EBITDA ratio to cash interest expense

2

Revolving credit facility | Credit Facility | LIBOR | Minimum

Debt Instrument [Line Items]

Basis points

1.50%

Revolving credit facility | Credit Facility | LIBOR | Maximum

Debt Instrument [Line Items]

Basis points

2.25%

Term credit facility | Credit Facility

Debt Instrument [Line Items]

Loss on extinguishment of debt

$ 1,000,000

Repayments of debt

372,000,000

Repayments of long-term debt

371,000,000

Repayments of debt, interest

$ 1,000,000

Secured Debt | Credit Facility | Incremental Term Facility due 2029

Debt Instrument [Line Items]

Aggregate principal amount

$ 250,000,000

$ 250,000,000

Secured Debt | Credit Facility | Incremental Term Facility due 2025

Debt Instrument [Line Items]

Aggregate principal amount

$ 175,000,000

Secured Debt | Credit Facility | Secured Overnight Financing Rate (SOFR) | Incremental Term Facility due 2029

Debt Instrument [Line Items]

Basis points

1.75%

Secured Debt | Credit Facility | Secured Overnight Financing Rate (SOFR) | Incremental Term Facility due 2025

Debt Instrument [Line Items]

Basis points

1.75%

Bayer Animal Business | Term B Loan Facility | Credit Facility

Debt Instrument [Line Items]

Credit facility, maximum borrowing capacity

$ 4,275,000,000

Bayer Animal Business | Term B Loan Facility | Credit Facility | LIBOR

Debt Instrument [Line Items]

Basis points

1.75%

Financial Instruments and Fai_3

Financial Instruments and Fair Value - Narrative (Details)	1 Months Ended	6 Months Ended	12 Months Ended
	Oct. 31, 2018 CHF (SFr)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity method investments			$ 27,000,000	$ 22,000,000
Net unrealized gain (loss)			(8,000,000)	(10,000,000)	$ 11,000,000
Unrealized gains associated with cancelled swaps			49,000,000
Stranded tax benefits reclassified to earnings			17,000,000
Interest rate swaps, tax			0	0	15,000,000
Reclassification from AOCI			15,000,000	28,000,000	7,000,000
Unrealized gains			105,000,000
Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash flow hedge, gain (loss) recorded in other comprehensive income (loss)			224,000,000	86,000,000	(61,000,000)
Cross-currency fixed interest rate swap | Not Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount (USD, CHF)			784,000,000	1,212,000,000
Cross-currency fixed interest rate swap | Designated as Hedging Instrument | Net Investment Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount (USD, CHF) | SFr	SFr 750,000,000
Term of contract	5 years
Cash benefit for liquidation					35,000,000
Interest included in cash benefit					$ 2,000,000
Forward-starting interest rate contracts designated as cash flow hedges | Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional amount (USD, CHF)			3,050,000,000	3,800,000,000
Unrealized gains			89,000,000
Forward-starting interest rate contracts designated as cash flow hedges | Designated as Hedging Instrument | Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash received for derivative settlement		$ 207,000,000
Interest rate swaps, tax			$ 0	$ 0

Financial Instruments and Fai_4

Financial Instruments and Fair Value - Summary of Fair Value Information (Details) - Recurring - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	$ 0	$ 0
Significant Observable  Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	(5,711)	(6,518)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	0	0
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	(5,900)	(6,401)
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	(5,711)	(6,518)
Prepaid expenses and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Prepaid expenses and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0
Prepaid expenses and other | Significant Observable  Inputs (Level 2) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	76	19
Prepaid expenses and other | Significant Observable  Inputs (Level 2) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	14
Prepaid expenses and other | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Prepaid expenses and other | Significant Unobservable Inputs (Level 3) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0
Prepaid expenses and other | Carrying Amount | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	76	19
Prepaid expenses and other | Carrying Amount | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	14
Prepaid expenses and other | Fair Value | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	76	19
Prepaid expenses and other | Fair Value | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	14
Other noncurrent assets | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	7	13
Other noncurrent assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other noncurrent assets | Significant Observable  Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other noncurrent assets | Significant Observable  Inputs (Level 2) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	10	8
Other noncurrent assets | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other noncurrent assets | Significant Unobservable Inputs (Level 3) | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other noncurrent assets | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	7	13
Other noncurrent assets | Carrying Amount | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	10	8
Other noncurrent assets | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	7	13
Other noncurrent assets | Fair Value | Forward-starting interest rate contracts designated as cash flow hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	10	8
Other current liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other current liabilities | Significant Observable  Inputs (Level 2) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(64)	(20)
Other current liabilities | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Other current liabilities | Carrying Amount | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(64)	(20)
Other current liabilities | Fair Value | Foreign exchange contracts not designated as hedging instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	$ (64)	$ (20)

Financial Instruments and Fai_5

Financial Instruments and Fair Value - Net Gain/Loss on Derivative Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps, tax	$ 0	$ 0	$ 15,000,000
Cross-currency fixed interest rate swap | Not Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net gain (loss) on derivative instruments	(12,000,000)	(35,000,000)	(4,000,000)
Cross-currency fixed interest rate swap | Designated as Hedging Instrument | Net Investment Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gain, net of tax	0	0	24,000,000
Forward-starting interest rate contracts designated as cash flow hedges | Designated as Hedging Instrument | Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gain, net of tax	157,000,000	86,000,000	$ (61,000,000)
Interest rate swaps, tax	$ 0	$ 0

Goodwill and Intangibles - Good

Goodwill and Intangibles - Goodwill Activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Balance as of December 31, 2021	$ 6,172	$ 6,225
Measurement period adjustments	3	207
Additions related to the KindredBio acquisition		33
Goodwill associated with divestitures	(3)	(64)
Foreign currency translation adjustments	(179)	(229)
Balance as of December 31, 2022	$ 5,993	$ 6,172

Goodwill and Intangibles - Narr

Goodwill and Intangibles - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Impairments with respect to the carrying value of goodwill	$ 0	$ 0	$ 0
Impairment charges	$ 60,000,000	66,000,000	17,000,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	20 years
Acquired in-process research and development
Finite-Lived Intangible Assets [Line Items]
Impairment charges	$ 59,000,000	55,000,000	9,000,000
Other
Finite-Lived Intangible Assets [Line Items]
Impairment charges	1,000,000
Marketed products
Finite-Lived Intangible Assets [Line Items]
Impairment charges		11,000,000	8,000,000
Software
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 65,000,000	$ 52,000,000	$ 35,000,000

Goodwill and Intangibles - Comp

Goodwill and Intangibles - Components of Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Carrying Amount, Gross	$ 6,918	$ 7,160
Accumulated Amortization	(2,441)	(1,942)
Carrying Amount, Net	4,477	5,218
Other intangible assets
Carrying Amount, Gross	7,283	7,529
Accumulated Amortization	(2,441)	(1,942)
Carrying Amount, Net	4,842	5,587
Acquired in-process research and development
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	365	369
Marketed products
Finite-Lived Intangible Assets [Line Items]
Carrying Amount, Gross	6,561	6,828
Accumulated Amortization	(2,275)	(1,837)
Carrying Amount, Net	4,286	4,991
Other intangible assets
Accumulated Amortization	(2,275)	(1,837)
Software
Finite-Lived Intangible Assets [Line Items]
Carrying Amount, Gross	310	285
Accumulated Amortization	(135)	(77)
Carrying Amount, Net	175	208
Other intangible assets
Accumulated Amortization	(135)	(77)
Other
Finite-Lived Intangible Assets [Line Items]
Carrying Amount, Gross	47	47
Accumulated Amortization	(31)	(28)
Carrying Amount, Net	16	19
Other intangible assets
Accumulated Amortization	$ (31)	$ (28)

Goodwill and Intangibles - Impa

Goodwill and Intangibles - Impairment Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Asset impairment, restructuring and other special charges	$ 60	$ 66	$ 17

Goodwill and Intangibles - Rema

Goodwill and Intangibles - Remaining Weighted Average Amortization Periods (Details)	12 Months Ended
	Dec. 31, 2022
Marketed products
Finite-Lived Intangible Assets [Line Items]
Remaining amortization period	9 years
Software
Finite-Lived Intangible Assets [Line Items]
Remaining amortization period	5 years
Other
Finite-Lived Intangible Assets [Line Items]
Remaining amortization period	5 years

Goodwill and Intangibles - Esti

Goodwill and Intangibles - Estimated Amortization Expense (Details) $ in Millions	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 512
2024	510
2025	491
2026	488
2027	$ 456

Property and Equipment - Narrat

Property and Equipment - Narrative (Details)	12 Months Ended
	Dec. 31, 2022
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	12 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	50 years
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	25 years

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,722	$ 2,096
Less accumulated depreciation	(723)	(1,041)
Property and equipment, net	999	1,055
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	40	42
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	578	543
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	941	1,354
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 163	$ 157

Property and Equipment- Schedul

Property and Equipment- Schedule of Property and Equipment Geographic Area (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 999	$ 1,055
United States
Property, Plant and Equipment [Line Items]
Property and equipment, net	554	557
Germany
Property, Plant and Equipment [Line Items]
Property and equipment, net	224	211
United Kingdom
Property, Plant and Equipment [Line Items]
Property and equipment, net	3	59
France
Property, Plant and Equipment [Line Items]
Property and equipment, net	52	54
Other foreign countries
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 166	$ 174

Property and Equipment - Deprec

Property and Equipment - Depreciation Expense and Rental Expense for All Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 89	$ 108	$ 122

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Jun. 26, 2020	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating leases, not yet commenced, minimum lease payments		$ 378		$ 310
Operating leases, not yet commenced, term (in years)		25 years
Sale leaseback transaction, net proceeds	$ 55
Term of contract	15 years
Gain on sale			$ 46
Lease payments		$ 28
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term		15 years

Leases - Impact of Operating Le

Leases - Impact of Operating Leases to Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease cost
Operating lease cost	$ 45	$ 43	$ 38
Short-term lease cost	1	1	1
Variable lease cost	5	4	3
Total lease cost	51	48	42
Other information
Operating cash outflows from operating leases	33	40	36
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 32	$ 36	$ 138
Weighted-average remaining lease term - operating leases	7 years	7 years	8 years
Weighted-average discount rate - operating leases	4%	3.80%	3.80%

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Right-of-use assets	$ 141	$ 161
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Current operating lease liabilities	$ 31	$ 34
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other noncurrent liabilities	Other noncurrent liabilities
Non-current operating lease liabilities	$ 111	$ 127

Leases - Annual Minimum Lease P

Leases - Annual Minimum Lease Payments of Operating Lease Liabilities (Details) $ in Millions	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 36
2024	28
2025	22
2026	17
2027	11
2028 and thereafter	50
Total lease payments	164
Less imputed interest	(22)
Total	$ 142

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0.5
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Vested in period, fair value	$ 29	$ 30	$ 33
Unrecognized compensation cost	$ 24
Weighted-average remaining requisite service period	16 months
PAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested in period, fair value	$ 23	$ 22	$ 2
Unrecognized compensation cost	$ 6
Weighted-average remaining requisite service period	12 months
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years		3 years
Weighted-average remaining requisite service period	18 months
Expiration period	10 years		10 years
Compensation not yet recognized	$ 2
Elanco Stock Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock to be reserved for future issuance (in shares)	20
Stock options granted (in shares)	12.2

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expenses (Details) - Elanco Stock Compensation Plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 59	$ 66	$ 47
Related tax benefit	$ (3)	$ (11)	$ (8)

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Restricted Stock Unit and Performance Award Activity (Details) - $ / shares shares in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
RSUs
Outstanding Restricted Stock Units
Beginning nonvested balance (in shares)	2.2
Granted (in shares)	1.3	1.1	1.3
Vested (in shares)	(1.1)
Forfeited (in shares)	(0.4)
Ending nonvested balance (in shares)	2	2.2
Weighted-Average Restricted Stock Unit Fair Value
Beginning nonvested balance (in dollars per share)	$ 30.87
Granted (in dollars per share)	28.17	$ 33.57	$ 27.44
Vested (in dollars per share)	30.51
Forfeited (in dollars per share)	30.39
Ending nonvested balance (in dollars per share)	$ 29.40	$ 30.87
PAs
Outstanding Restricted Stock Units
Beginning nonvested balance (in shares)	1
Granted (in shares)	0.5
Vested (in shares)	(1)
Forfeited (in shares)	0
Ending nonvested balance (in shares)	0.5	1
Weighted-Average Restricted Stock Unit Fair Value
Beginning nonvested balance (in dollars per share)	$ 30.53
Granted (in dollars per share)	28.94
Vested (in dollars per share)	33.45
Forfeited (in dollars per share)	31.40
Ending nonvested balance (in dollars per share)	$ 28.94	$ 30.53

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Assumptions Used (Details) - Stock options	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0%
Risk-free interest rate	1.59%
Expected stock price volatility	36.50%
Expected term (years)	6 years
Vesting period	3 years	3 years
Expiration period	10 years	10 years

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Shares of Common Stock Attributable to Options
Outstanding at beginning of period (in shares) | shares	0.3
Granted (in shares) | shares	0.5
Exercised (in shares) | shares	0
Forfeited or expired (in shares) | shares	0
Outstanding at end of period (in shares) | shares	0.8
Exercisable (in shares) | shares	0.3
Weighted-Average Exercise Price of Options
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 31.61
Granted (in dollars per share) | $ / shares	28.94
Exercised (in dollars per share) | $ / shares	0
Forfeited or expired (in dollars per share) | $ / shares	0
Outstanding at end of period (in dollars per share) | $ / shares	30.11
Exercisable (in dollars per share) | $ / shares	$ 31.61
Stock Option Activity, Additional Disclosures
Weighted-average remaining contractual term of the outstanding options	7 years 8 months 12 days
Weighted-average remaining contractual term of the exercisable options	5 years 9 months 18 days
Aggregate intrinsic value of outstanding options | $	$ 0
Aggregate intrinsic value of exercisable options | $	$ 0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Capitalized research and development costs	$ 161
Tax credit carryovers	53
Net operating losses and other carryovers	329	$ 311
Net increase in the valuation allowance	80	76	$ 72
Unrecognized tax benefits that, if recognized, would affect effective tax rate	2	$ 6	$ 3
Domestic
Operating Loss Carryforwards [Line Items]
Capitalized research and development costs	154
Tax credit carryovers	30
Foreign
Operating Loss Carryforwards [Line Items]
Capitalized research and development costs	7
Tax credit carryovers	8
State
Operating Loss Carryforwards [Line Items]
Tax credit carryovers	15
International, State and Federal
Operating Loss Carryforwards [Line Items]
Net operating losses and other carryovers	329
Net operating loss carryforwards with indefinite carryforward period	217
International, State and Federal | 2023 to 2041
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards that expire	$ 112

Income Taxes - Composition of I

Income Taxes - Composition of Income (Loss) Before Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal								$ (350)	$ (341)	$ (491)
Foreign								278	(230)	(186)
Loss before income taxes	$ (44)	$ (14)	$ 75	$ (120)	$ (130)	$ (243)	$ (77)	$ (72)	$ (571)	$ (677)

Income Taxes - Composition of_2

Income Taxes - Composition of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal												$ 11	$ 0	$ (36)
Foreign												51	59	54
State												1	1	(7)
Total current tax expense												63	60	11
Deferred:
Federal												(20)	(11)	(6)
Foreign												(36)	(136)	(116)
State												(1)	(1)	8
Total deferred tax benefit			$ (7)				$ (28)	$ (34)	$ (120)	$ (28)	$ (122)	(57)	(148)	(114)
Income tax expense (benefit)	$ 21	$ (4)	$ 24	$ (15)	$ (22)	$ (37)	$ (13)					$ 6	$ (88)	$ (103)

Income Taxes - Significant Comp

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Compensation and benefits	$ 32	$ 58
Accruals and reserves	54	41
Tax credit carryovers	53	53
Tax loss carryovers	329	311
Business interest deduction limitation	120	55
Inventories	30	18
Restructuring and other reserves	13	31
R&D capitalized assets	42	0
Operating lease liabilities	34	42
Other assets	13	34
Total gross deferred tax assets	720	643
Valuation allowances	(228)	(182)
Total deferred tax assets	492	461
Deferred tax liabilities:
Right-of-use assets	(34)	(42)
Intangibles	(920)	(995)
Property and equipment	(70)	(80)
Cash flow hedge deferred gain	(42)	0
Other liabilities	(6)	0
Total deferred tax liabilities	(1,072)	(1,117)
Deferred tax liabilities - net	$ (580)	$ (656)

Income Taxes - Movements in the

Income Taxes - Movements in the Valuation Allowance (Details) - Valuation Allowance, Deferred Tax Asset - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ (182)	$ (100)
Increase	(49)	(88)
Release	3	6
Ending balance	$ (228)	$ (182)

Income Taxes - Cash Payments of

Income Taxes - Cash Payments of Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Cash payments of income taxes	$ 93	$ 151	$ 97

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Taxes Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income taxes receivable	$ 180	$ 130	$ 116

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax benefit at the U.S. federal statutory tax rate								$ (15)	$ (120)	$ (143)
Add (deduct):
Taxation of international operations								(27)	(16)	(15)
State taxes								(11)	(8)	(10)
Income tax credits								(13)	(14)	(24)
Non-deductible employee compensation								7	4	1
Other permanent adjustments								(2)	(8)	23
Change in uncertain tax positions								3	(2)	(7)
Change in valuation allowance								80	76	72
Brazil receivable								(16)	0	0
Income tax expense (benefit)	$ 21	$ (4)	$ 24	$ (15)	$ (22)	$ (37)	$ (13)	$ 6	$ (88)	$ (103)

Income Taxes - Reconciliation_2

Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 6	$ 3	$ 8
Additions based on tax positions related to the current year	3	0	0
Changes for tax positions of prior years	0	(1)	(2)
Additions related to acquisition	7	4	0
Settlements	0	0	(3)
Ending balance	$ 16	$ 6	$ 3

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Oct. 16, 2020
Commitments and Contingencies Disclosure [Abstract]
Liabilities related to litigation	$ 0	$ 0
Percent of TEUs issued involved in lawsuit			5%
New corporate headquarters, estimated total incentive to be funded by TIF	64,000,000
Tax incremental financing, commitment amount		$ 64,000,000
Refund within next three months	$ 15,000,000

Geographic Information - Narrat

Geographic Information - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020
Concentration Risk [Line Items]
Number of operating segments | segment	1
Accounts receivable	$ 797	$ 833
Product Sales
Concentration Risk [Line Items]
Accounts receivable	$ 73	$ 74
Customer Concentration Risk | Revenue | Single Customer
Concentration Risk [Line Items]
Concentration risk	11%	10%	11%

Geographic Information - Revenu

Geographic Information - Revenue and Long-lived Assets by Selected Geographic Area Information (Details) - USD ($) $ in Millions	3 Months Ended							12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,026	$ 1,175	$ 1,226	$ 1,112	$ 1,131	$ 1,278	$ 1,243	$ 4,411	$ 4,764	$ 3,271
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue								1,965	2,124	1,475
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue								$ 2,446	$ 2,640	$ 1,796

Retirement Benefits - Narrative

Retirement Benefits - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, tax amount	$ 11	$ 0	$ 0
Contributions expected in next fiscal year	11
Expenses related to employees under defined contribution plans	34	39	35
Bayer-Pensionskasse
Defined Benefit Plan Disclosure [Line Items]
Multiemployer plan, assets		10,818	11,476
Multiemployer plan, obligation		10,328	10,950
Multiemployer plan, contributions		128	134
Rheinische-Pensionskasse
Defined Benefit Plan Disclosure [Line Items]
Multiemployer plan, assets		1,054	1,026
Multiemployer plan, obligation		1,002	972
Multiemployer plan, contributions		52	$ 52
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Total accumulated benefit obligation	$ 314	$ 446
Pension Plans | Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	35%
Pension Plans | Fixed Income Securities | Bayer Animal Business
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	51%
Pension Plans | Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	30%
Pension Plans | Public equity securities | Bayer Animal Business
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	26%
Pension Plans | Real estate
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	22%
Pension Plans | Other alternative investments
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	13%
Pension Plans | Other alternative investments | Bayer Animal Business
Defined Benefit Plan Disclosure [Line Items]
Designated percentage invested	23%
Pension Plans | Switzerland
Defined Benefit Plan Disclosure [Line Items]
Percentage of benefit obligation in Switzerland pension plans	91%
Percentage of plan assets in Switzerland pension plans	87%

Retirement Benefits - Change in

Retirement Benefits - Change in Benefit Obligation, Change in Plan Assets, and Funded Status (Details) - Pension Plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Change in benefit obligation:
Benefit obligation at beginning of year	$ 462	$ 560
Service cost	14	18	$ 14
Interest cost	4	2	2
Actuarial gain	(123)	(25)
Benefits paid	(12)	(4)
Plan amendments	(1)	0
Curtailment gain	0	(19)
Settlements	(1)	(38)
Foreign currency exchange rate changes and other adjustments	(19)	(32)
Benefit obligation at end of year	324	462	560
Change in plan assets:
Fair value of plan assets at beginning of year	207	234
Actual return on plan assets	(26)	13
Employer contribution	12	12
Benefits paid	(12)	(4)
Settlements	(1)	(38)
Foreign currency exchange rate changes and other adjustments	(5)	(10)
Fair value of plan assets at end of year	175	207	$ 234
Funded status	(148)	(255)
Unrecognized net actuarial (gain) loss	(82)	13
Unrecognized prior service cost	(30)	(34)
Net amount recognized	$ (260)	$ (276)

Retirement Benefits - Amounts R

Retirement Benefits - Amounts Recognized in Combined Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Amounts recognized in the consolidated balance sheet consisted of:
Accrued retirement benefits	$ (161)	$ (271)
Pension Plans
Amounts recognized in the consolidated balance sheet consisted of:
Other noncurrent assets	2	0
Other current liabilities	0	(1)
Accrued retirement benefits	(150)	(254)
Accumulated other comprehensive income before income taxes	(112)	(21)
Net amount recognized	$ (260)	$ (276)

Retirement Benefits - Weighted-

Retirement Benefits - Weighted-Average Assumptions Related to Pension Plans (Details) - Pension Plans	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate for benefit obligation	3.40%	1.10%	0.60%
Discount rate for net benefit costs	1.10%	0.60%	0.60%
Rate of compensation increase for benefit obligation	3%	2.70%	3.10%
Rate of compensation increase for net benefit costs	2.70%	3.10%	2.30%
Expected return on plan assets for net benefit costs	3.10%	2.90%	3.20%

Retirement Benefits - Schedule

Retirement Benefits - Schedule of Expected Benefit Payments (Details) - Pension Plans $ in Millions	Dec. 31, 2022 USD ($)
Benefit payments
2023	$ 12
2024	13
2025	14
2026	14
2027	16
2027-2031	$ 85

Retirement Benefits - Projected

Retirement Benefits - Projected Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 301	$ 455
Fair value of plan assets	$ 150	$ 200

Retirement Benefits - Accumulat

Retirement Benefits - Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 289	$ 441
Fair value of plan assets	$ 146	$ 200

Retirement Benefits - Net Pensi

Retirement Benefits - Net Pension Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Net pension expense (benefit)	$ 0	$ (29)	$ 0
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	14	18	14
Interest cost	4	2	2
Expected return on plan assets	(6)	(6)	(6)
Amortization of prior service cost	(5)	(6)	(8)
Amortization of net actuarial loss	1	2	3
Net curtailments and settlements (Note 7)	0	(29)	0
Net pension expense (benefit)	$ 8	$ (19)	$ 5

Retirement Benefits - Amounts_2

Retirement Benefits - Amounts Recognized in Other Comprehensive Loss (Details) - Pension Plans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Actuarial gain (loss) arising during period	$ 92	$ 29	$ (18)
Prior year service cost during the year	1	0	0
Amortization of prior service cost, including settlements, in net loss	(5)	(36)	(8)
Amortization of net actuarial loss, including curtailments, in net loss	1	22	3
Foreign currency exchange rate changes and other	1	0	1
Total other comprehensive income (loss) during period	$ 90	$ 15	$ (22)

Retirement Benefits - Fair Valu

Retirement Benefits - Fair Value of Pension Plan Assets (Details) - Pension Plans - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 175	$ 207	$ 234
Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	49	63
Developed markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	64	76
Emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9	11
Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	23	26
Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	30	31
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	161	193
Quoted Prices in Active Markets for Identical Assets (Level 1) | Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	47	60
Quoted Prices in Active Markets for Identical Assets (Level 1) | Developed markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	63	75
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9	11
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	17	21
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	25	26
Significant Observable  Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11	10
Significant Observable  Inputs (Level 2) | Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Observable  Inputs (Level 2) | Developed markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Observable  Inputs (Level 2) | Emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Observable  Inputs (Level 2) | Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	5
Significant Observable  Inputs (Level 2) | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	5	5
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Unobservable Inputs (Level 3) | Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Unobservable Inputs (Level 3) | Developed markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Unobservable Inputs (Level 3) | Emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Unobservable Inputs (Level 3) | Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Significant Unobservable Inputs (Level 3) | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Investments Valued at Net Asset Value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3	4
Investments Valued at Net Asset Value | Public equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	2	3
Investments Valued at Net Asset Value | Developed markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	1	1
Investments Valued at Net Asset Value | Emerging markets
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Investments Valued at Net Asset Value | Real estate
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Investments Valued at Net Asset Value | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

Retirement Benefits - Multiempl

Retirement Benefits - Multiemployer Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Multiemployer Plan [Line Items]
Employer contribution, cost	$ 3	$ 4
Bayer-Pensionskasse
Multiemployer Plan [Line Items]
Employer contribution, cost	2	3
Rheinische-Pensionskasse
Multiemployer Plan [Line Items]
Employer contribution, cost	$ 1	$ 1

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net loss available to common shareholders	$ (65)	$ (10)	$ 51	$ (105)	$ (108)	$ (206)	$ (64)	$ 41	$ (271)	$ (24)	$ (378)	$ (78)	$ (483)	$ (574)
Weighted average common shares outstanding (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7					488.3	487.2	441.4
Assumed conversion of dilutive common stock equivalents (in shares)												0	0	0
Diluted weighted average shares outstanding (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7					488.3	487.2	441.4
Basic (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Diluted (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Antidilutive shares not included in calculation diluted earnings per share (in shares)												3.3	3.2	4.1

Selected Quarterly Data (unau_3

Selected Quarterly Data (unaudited) - Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interim Period, Costs Not Allocable [Line Items]
Revenue	$ 1,026	$ 1,175	$ 1,226	$ 1,112	$ 1,131	$ 1,278	$ 1,243					$ 4,411	$ 4,764	$ 3,271
Cost of sales						551	566					1,913	2,132	1,667
Marketing, selling and administrative	298	343	322	327	342	385	349					1,265	1,403	997
Asset impairment, restructuring and other special charges	26	86	40			305	108					183	634	623
Interest expense, net of capitalized interest						60	61					241	236	150
Other (income) expense, net	8	(6)	9									32	5	(178)
Loss before income taxes	(44)	(14)	75	(120)	(130)	(243)	(77)					(72)	(571)	(677)
Income tax expense (benefit)	21	(4)	24	(15)	(22)	(37)	(13)					6	(88)	(103)
Net income (loss)	$ (65)	$ (10)	$ 51	$ (105)	$ (108)	$ (206)	$ (64)	$ 41	$ (271)	$ (24)	$ (378)	$ (78)	$ (483)	$ (574)
Loss per share:
Basic (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Diluted (usd per share)	$ (0.13)	$ (0.02)	$ 0.10	$ (0.22)	$ (0.22)	$ (0.42)	$ (0.13)					$ (0.16)	$ (0.99)	$ (1.30)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7					488.3	487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7					488.3	487.2	441.4
As Reported
Interim Period, Costs Not Allocable [Line Items]
Revenue	$ 1,028	$ 1,177	$ 1,225	$ 1,113	$ 1,131	$ 1,279	$ 1,242						$ 4,765	$ 3,273
Cost of sales						551	569						2,134	1,667
Marketing, selling and administrative	298	343	320	329	342	385	348						1,404	996
Asset impairment, restructuring and other special charges	26	86	46			299	108						628	623
Interest expense, net of capitalized interest						60	61
Other (income) expense, net	8	0	9
Loss before income taxes	(42)	(18)	71	(121)	(130)	(236)	(80)						(567)	(672)
Income tax expense (benefit)	7	4	23	(24)	(26)	(26)	(19)						(95)	(112)
Net income (loss)	$ (49)	$ (22)	$ 48	$ (97)	$ (104)	$ (210)	$ (61)	26	(271)	(23)	(375)		$ (472)	$ (560)
Loss per share:
Basic (usd per share)	$ (0.10)	$ (0.04)	$ 0.10	$ (0.20)	$ (0.21)	$ (0.43)	$ (0.12)						$ (0.97)	$ (1.27)
Diluted (usd per share)	$ (0.10)	$ (0.04)	$ 0.10	$ (0.20)	$ (0.21)	$ (0.43)	$ (0.12)						$ (0.97)	$ (1.27)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7						487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7						487.2	441.4
Revisions
Interim Period, Costs Not Allocable [Line Items]
Revenue	$ (2)	$ (2)	$ 1	$ (1)	$ 0	$ (1)	$ 1						$ (1)	$ (2)
Cost of sales						0	(3)						(2)	0
Marketing, selling and administrative	0	0	2	(2)	0	0	1						(1)	1
Asset impairment, restructuring and other special charges	0	0	(6)			6	0						6	0
Interest expense, net of capitalized interest						0	0
Other (income) expense, net	0	(6)	0
Loss before income taxes	(2)	4	4	1	0	(7)	3						(4)	(5)
Income tax expense (benefit)	14	(8)	1	9	4	(11)	6						7	9
Net income (loss)	$ (16)	$ 12	$ 3	$ (8)	$ (4)	$ 4	$ (3)	$ 15	$ 0	$ (1)	$ (3)		$ (11)	$ (14)
Loss per share:
Basic (usd per share)	$ (0.03)	$ 0.02	$ 0	$ (0.02)	$ (0.01)	$ 0.01	$ (0.01)						$ (0.02)	$ (0.03)
Diluted (usd per share)	$ (0.03)	$ 0.02	$ 0	$ (0.02)	$ (0.01)	$ 0.01	$ (0.01)						$ (0.02)	$ (0.03)
Weighted average shares outstanding:
Basic (in shares)	488.4	488.4	488	487.4	487.3	487.3	486.7						487.2	441.4
Diluted (in shares)	488.4	488.4	492.2	487.4	487.3	487.3	486.7						487.2	441.4

Selected Quarterly Data (unau_4

Selected Quarterly Data (unaudited) - Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended							6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interim Period, Costs Not Allocable [Line Items]
Net income (loss)	$ (65)	$ (10)	$ 51	$ (105)	$ (108)	$ (206)	$ (64)	$ 41	$ (271)	$ (24)	$ (378)	$ (78)	$ (483)	$ (574)
Deferred income taxes			(7)				(28)	(34)	(120)	(28)	(122)	(57)	(148)	(114)
Asset impairment and write-down charges			22				9	81	284	81	340	$ 81	345	25
Changes in operating assets and liabilities			(332)				(184)	(384)	(190)	(385)	(243)
As Reported
Interim Period, Costs Not Allocable [Line Items]
Net income (loss)	(49)	(22)	48	(97)	(104)	(210)	(61)	26	(271)	(23)	(375)		(472)	(560)
Deferred income taxes			(11)				(32)	(40)	(114)	(36)	(119)		(154)	(125)
Asset impairment and write-down charges			28				9	87	278	87	334		339	25
Changes in operating assets and liabilities			(331)				(183)	(369)	(190)	(384)	(243)
Revisions
Interim Period, Costs Not Allocable [Line Items]
Net income (loss)	$ (16)	$ 12	3	$ (8)	$ (4)	$ 4	(3)	15	0	(1)	(3)		(11)	(14)
Deferred income taxes			4				4	6	(6)	8	(3)		6	11
Asset impairment and write-down charges			(6)				0	(6)	6	(6)	6		$ 6	$ 0
Changes in operating assets and liabilities			$ (1)				$ (1)	$ (15)	$ 0	$ (1)	$ 0

Related Party Agreements and _2

Related Party Agreements and Transactions - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Bayer
Related Party Transaction [Line Items]
Asset purchase refund	$ 16	$ 633

Uncategorized Items - elan-2022

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]