Elanco Animal Health (ELAN) 10-Q 8 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38661
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		494,181,620
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001739104
Current Fiscal Year End Date	--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 1,205	$ 1,257
Costs, expenses and other:
Cost of sales	515	494
Research and development	87	81
Marketing, selling and administrative	337	327
Amortization of intangible assets	133	134
Asset impairment, restructuring and other special charges	46	40
Interest expense, net of capitalized interest	66	64
Other expense, net	9	9
Costs, expenses and other	1,193	1,149
Income before income taxes	12	108
Income tax (benefit) expense	(20)	5
Net income	$ 32	$ 103
Earnings per share:
Basic (usd per share)	$ 0.06	$ 0.21
Diluted (usd per share)	$ 0.06	$ 0.21
Weighted-average shares outstanding:
Basic (in shares)	493.2	491.1
Diluted (in shares)	496	492.8

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 32	$ 103
Other comprehensive (loss) income:
Cash flow hedges, net of taxes	32	(48)
Foreign currency translation, net of taxes	(227)	130
Defined benefit plans, net of taxes	(4)	0
Other comprehensive (loss) income, net of taxes	(199)	82
Comprehensive (loss) income	$ (167)	$ 185

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 345	$ 352
Accounts receivable, net	988	842
Other receivables	90	168
Inventories	1,638	1,735
Prepaid expenses and other	338	310
Assets held for sale	651	0
Total current assets	4,050	3,407
Noncurrent Assets
Goodwill	4,478	5,094
Other intangibles, net	4,196	4,494
Other noncurrent assets	346	341
Property and equipment, net	949	1,026
Total assets	14,019	14,362
Current Liabilities
Accounts payable	302	270
Sales rebates and discounts	318	367
Current portion of long-term debt	38	38
Other current liabilities	574	566
Total current liabilities	1,232	1,241
Noncurrent Liabilities
Long-term debt	5,727	5,736
Deferred taxes	530	567
Other noncurrent liabilities	474	595
Total liabilities	7,963	8,139
Commitments and Contingencies
Equity
Common stock, no par value, 5,000,000,000 shares authorized, 494,049,915 and 492,845,216 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	8,777	8,777
Accumulated deficit	(2,256)	(2,288)
Accumulated other comprehensive loss	(465)	(266)
Total equity	6,056	6,223
Total liabilities and equity	$ 14,019	$ 14,362

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	5,000,000,000	5,000,000,000
Common stock, shares issued (in shares)	494,049,915	492,845,216
Common stock, shares outstanding (in shares)	494,049,915	492,845,216

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Cash Flow Hedges	Foreign Currency Translation	Defined Benefit Plans
Balance at beginning of period (in shares) at Dec. 31, 2022		474,200,000
Balance at beginning of period at Dec. 31, 2022	$ 7,289	$ 0	$ 8,738	$ (1,057)	$ (392)	$ 182	$ (672)	$ 98
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	103			103
Other comprehensive income (loss), net of tax	82				82	(48)	130
Stock-based compensation activity, net (in shares)		1,000,000
Stock-based compensation activity, net	6		6
Conversion of tangible equity units (TEUs) into common stock (in shares)		17,200,000
Balance at end of period (in shares) at Mar. 31, 2023		492,400,000
Balance at end of period at Mar. 31, 2023	$ 7,480	$ 0	8,744	(954)	(310)	134	(542)	98
Balance at beginning of period (in shares) at Dec. 31, 2023	492,845,216	492,800,000
Balance at beginning of period at Dec. 31, 2023	$ 6,223	$ 0	8,777	(2,288)	(266)	57	(379)	56
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	32			32
Other comprehensive income (loss), net of tax	$ (199)				(199)	32	(227)	(4)
Stock-based compensation activity, net (in shares)		1,200,000
Balance at end of period (in shares) at Mar. 31, 2024	494,049,915	494,000,000
Balance at end of period at Mar. 31, 2024	$ 6,056	$ 0	$ 8,777	$ (2,256)	$ (465)	$ 89	$ (606)	$ 52

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities
Net income	$ 32	$ 103
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	166	173
Stock-based compensation expense	11	12
Changes in operating assets and liabilities, net of acquisitions and divestitures	(177)	(439)
Other non-cash operating activities, net	(30)	6
Net Cash Provided by (Used for) Operating Activities	2	(145)
Cash Flows from Investing Activities
Net purchases of property and equipment and software	(24)	(24)
Cash paid for acquisitions	(5)	(16)
Proceeds from sale of Shawnee and Speke facilities (see Note 4)	66	0
Purchases of intangible assets	0	(14)
Other investing activities, net	0	(1)
Net Cash Provided by (Used for) Investing Activities	37	(55)
Cash Flows from Financing Activities
Repayments of long-term borrowings	(13)	(19)
Other financing activities, net	(14)	(7)
Net Cash (Used for) Provided by Financing Activities	(27)	174
Effect of exchange rate changes on cash and cash equivalents	(19)	(1)
Net decrease in cash and cash equivalents	(7)	(27)
Cash and cash equivalents – beginning of period	352	345
Cash and cash equivalents – end of period	345	318
Revolving Credit Facility
Cash Flows from Financing Activities
Proceeds from facility	50	200
Repayments of facility	(50)	0
Securitization Facility
Cash Flows from Financing Activities
Proceeds from facility	50	0
Repayments of facility	$ (50)	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1. Basis of Presentation and Summary of Significant Accounting Policies We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the SEC requirements for interim reporting. As permitted under those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the U.S. (GAAP) have been condensed or omitted. The information included in this Form 10-Q should be read in conjunction with our consolidated financial statements and accompanying notes for the year ended December 31, 2023, included in our 2023 Form 10-K . In addition, results for interim periods should not be considered indicative of results for any other interim period or for the full year ending December 31, 2024, or any other future period. 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. 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. Certain reclassifications of prior year information have been made to conform to the current year's presentation. The significant accounting policies set forth in Note 2 to the consolidated financial statements in our 2023 Form 10-K and the footnotes herein appropriately represent, in all material respects, the current status of our accounting policies.

New Financial Accounting Pronou

New Financial Accounting Pronouncements	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
New Financial Accounting Pronouncements	Note 2. New Financial Accounting Pronouncements The following table provides a brief description of accounting standards applicable to us that we have not yet adopted: Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 is intended to improve disclosure requirements related to reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (CODM) for purposes of assessing a segment's profit or loss and deciding how to allocate resources. This new standard applies to all public entities, including entities, like us, with a single reportable segment. This new standard is effective for fiscal years beginning after December 31, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption requires retrospective application. We are currently assessing the impact ASU 2023-07 will have on our consolidated financial statements, including our footnote disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity's operations and related tax risks and its tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact ASU 2023-09 will have on our consolidated financial statements, including our Income Taxes footnote disclosure.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Note 3. 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 obligations, which is generally once the goods have been shipped and the customer has assumed title. 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 services. Provisions for sales rebates and discounts are recorded as a reduction to revenue in the period the related sales are recognized and are based on specific agreements. In determining the appropriate accrual amount, we consider our historical experience with similar incentive programs, current sales data and estimates of inventory levels at our channel distributors. The following table summarizes the activity in our global sales rebates and discounts liability: Three Months Ended March 31, 2024 2023 Beginning balance $ 367 $ 324 Reduction of revenue 221 209 Payments (266) (204) Foreign currency translation adjustments (4) — Ending balance $ 318 $ 329 Adjustments to revenue recognized as a result of changes in estimates during the three months ended March 31, 2024 and 2023, for product shipped in previous periods were not material. Actual global product returns were approximately 1% of net revenue for the three months ended March 31, 2024 and 2023. Disaggregation of Revenue The following table summarizes our revenue disaggregated by product category: Three Months Ended March 31, 2024 2023 Pet Health $ 639 $ 675 Farm Animal: Cattle 244 248 Poultry 197 183 Swine 84 102 Aqua 31 40 Total Farm Animal 556 573 Contract Manufacturing (1) 10 9 Revenue $ 1,205 $ 1,257 (1) Represents revenue from arrangements in which we manufacture products on behalf of a third party. The following table summarizes our revenue disaggregated by geographic area: Three Months Ended March 31, 2024 2023 United States $ 531 $ 543 International 674 714 Revenue $ 1,205 $ 1,257 We have a single customer that accounted for approximately 9% of revenue for each of the three months ended March 31, 2024 and 2023. Product sales with this customer resulted in accounts receivable of $93 million and $78 million at March 31, 2024 and December 31, 2023, respectively.

Acquisitions, Divestitures and

Acquisitions, Divestitures and Other Arrangements	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Divestitures and Other Arrangements	Note 4. Acquisitions, Divestitures and Other Arrangements Acquisitions During 2023, we completed the acquisitions of certain U.S. marketed products, pipeline products, inventory and an assembled workforce from NutriQuest, LLC (NutriQuest) and certain assets including inventory and distribution rights for certain marketed products from NutriQuest Nutricao Animal Ltda (NutriQuest Brazil). Each of these transactions was accounted for as a business combination under the acquisition method of accounting. The acquisition method requires, among other things, that assets acquired and liabilities assumed 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. NutriQuest On January 3, 2023, we acquired NutriQuest for total purchase consideration of $59 million. NutriQuest is a provider of swine, poultry and cattle nutritional health products to animal producers. The acquisition helped us expand our existing nutritional health offerings and further our efforts to explore innovative antibiotic alternatives. The composition of the purchase price was as follows: Up-front cash consideration $ 16 Deferred cash consideration paid January 4, 2024 5 Fair value of contingent consideration 38 Total purchase consideration $ 59 Contingent consideration for this acquisition includes up to $85 million of cash consideration payable if specific development, sales and geographic expansion milestones are achieved, as outlined in the asset purchase agreement. The initial fair value of this contingent consideration liability of $38 million was estimated at the acquisition date using a Monte Carlo simulation model, which represented a Level 3 measurement under the fair value hierarchy (see Note 10. Fair Value for further information). The following table summarizes the fair values of assets acquired as of the acquisition date: Inventories $ 3 Intangible assets: Marketed products 29 Acquired in-process research and development (IPR&D) 9 Other intangible assets 15 Total identifiable assets 56 Goodwill 3 Total consideration transferred $ 59 Other intangible assets consist of customer relationships and trade names. The acquired definite-lived intangible assets are being amortized over a weighted-average estimated useful life of approximately 12 years on a straight-line basis. NutriQuest Brazil On August 1, 2023, we acquired NutriQuest Brazil for total purchase consideration of $19 million. The composition of the purchase price included cash paid on the closing date of $3 million, with additional consideration payable through 2026 valued at approximately $16 million, a portion of which is contingent upon the continuation of certain terms and conditions set forth in the asset purchase agreement. The following table summarizes the preliminary amounts recognized for assets acquired as of the acquisition date: Inventories $ 3 Definite-lived intangible assets 15 Total identifiable assets 18 Goodwill 1 Total consideration transferred $ 19 The acquired definite-lived intangible assets are being amortized over a weighted-average estimated useful life of approximately nine years on a straight-line basis. The purchase price allocation for this acquisition is preliminary as of March 31, 2024, and subject to change, including the valuation of the intangible assets. The final determination of these amounts will be completed as soon as possible but no later than one year from the acquisition date. Divestitures Shawnee and Speke During 2021, we announced an agreement with TriRx Pharmaceuticals (TriRx) to sell our manufacturing sites in Shawnee, Kansas (Shawnee) and Speke, U.K. (Speke). In August 2021 and February 2022, we completed the sales of our Shawnee and Speke sites, respectively. Based on the original terms of the sales agreements, we anticipated receiving cash consideration from TriRx over a three-year period, and we received cash proceeds of $13 million from TriRx in 2022. In May 2023, we entered into amendments to the agreements (the amended agreement), which effectively restructured the payment schedule related to the remaining amount owed. At December 31, 2023, our remaining net receivable balance from TriRx under the amended agreement was $69 million. In February 2024, we received $66 million from TriRx, in addition to accrued interest, with the remaining $3 million due in August 2024. Aqua Business In February 2024, we entered into an asset purchase agreement (APA) to sell our aqua business to Intervet International B.V., a Dutch subsidiary of Merck Animal Health, for approximately $1.3 billion in cash, payable at closing. Our aqua business includes products across both warm-water and cold-water species. This divestiture is expected to include inventories, real property and equipment, including our manufacturing sites in Canada and Vietnam, and certain intellectual property, technology and other intangible assets, including marketed brands, as well as approximately 280 commercial and manufacturing employees. The APA contains certain representations, warranties and covenants that are customary for transactions of this nature, including covenants by us relating to the operation of the aqua business prior to the closing of the transaction, as well as certain non-compete restrictions. The future closing of the divestiture is subject to customary conditions, including the receipt of applicable regulatory and antitrust approvals, and is currently anticipated to occur around mid-year 2024. If the APA is terminated due to failure to obtain the applicable required approvals, subject to certain conditions, Merck Animal Health will be required to pay us a termination fee of $55 million in cash. Our aqua business generated revenues of $31 million and $40 million during the three months ended March 31, 2024 and 2023, respectively. Given that we operate our business as a single reporting unit, we are unable to reasonably determine stand-alone costs and related earnings or loss before income taxes attributable to our aqua business. We determined the aqua business assets being sold (the disposal group) met all the required criteria to be classified as held for sale in February 2024. Accordingly, at that time we ceased depreciation and amortization of the long-lived assets included within the disposal group. We have also determined that the sale of our aqua business does not qualify for reporting as a discontinued operation, as it does not represent a strategic shift that has or will have a major effect on our operations and/or financial results. We also determined that the disposal group's fair value, based upon the expected $1.3 billion sales price, less anticipated costs to sell, exceeded its carrying value. As such, no write-down of the carrying value was required. In establishing the carrying value of our disposal group, a portion of our single reporting unit’s goodwill was allocated to it on a relative fair value basis. In determining the relative fair value of the disposal group to our single reporting unit as a whole, we compared the fair value of the disposal group to an estimated fair value of our single reporting unit, which was based on a fair value assessment using the income approach. The income approach is a valuation technique that provides an estimate of fair value based on market participant expectations of the cash flows an asset would generate over its remaining useful life. Significant management judgment was required in estimating the fair value of our single reporting unit, including, but not limited to, estimates and assumptions regarding future cash flows of our single reporting unit, revenue growth and other profitability measures, such as gross margin and earnings before interest, taxes, depreciation and amortization (EBITDA) margin, and the determination of an appropriate discount rate. We consider this valuation approach to be a Level 3 measurement under the fair value hierarchy. As of March 31, 2024, the carrying amounts of the following major assets were classified as held for sale on our condensed consolidated balance sheet: Inventories $ 45 Goodwill 482 Other intangibles, net 50 Property and equipment, net 66 Other assets 8 Total assets held for sale $ 651

Asset Impairment, Restructuring

Asset Impairment, Restructuring and Other Special Charges	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Asset Impairment, Restructuring and Other Special Charges	Note 5. 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. Restructuring activities primarily include charges associated with product, facility and business rationalizations and workforce reductions. We have also incurred costs associated with executing acquisition, divestiture and other significant transactions and related integration and/or separation activities. Components of asset impairment, restructuring and other special charges were as follows: Three Months Ended March 31, 2024 2023 Restructuring charges (1) $ 39 $ — Acquisition and divestiture-related charges (2) 7 40 Total expense $ 46 $ 40 (1) Restructuring charges in 2024 primarily related to expected cash-based severance costs associated with a restructuring program approved and announced in February 2024 intended to reallocate resources by shifting international resources from farm animal to pet health. This restructuring program has also resulted in changes in how we operate in and sell into the Argentina market, among others. (2) Acquisition and divestiture-related charges included transaction costs directly related to acquiring or divesting businesses, such as expenditures for banking, legal, accounting, consulting and other similar services and integration or separation charges, inclusive of system and process integration or carve-out costs, product transfers and costs related to the implementation of new systems, programs and processes. The following table summarizes the activity in our reserves established in connection with restructuring activities: Balance at December 31, 2023 $ 7 Charges 39 Cash paid (6) Balance at March 31, 2024 $ 40

Inventories

Inventories	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventories	Note 6. Inventories Inventories are stated at the lower of cost and net realizable value. We value a majority of our inventories using the first-in, first out (FIFO) method, although we use the last-in, first-out (LIFO) method for a portion of our inventories. Inventories consisted of the following: March 31, 2024 December 31, 2023 Finished products $ 797 $ 857 Work in process 796 814 Raw materials and supplies 109 128 Total 1,702 1,799 Decrease to LIFO cost (64) (64) Inventories $ 1,638 $ 1,735

Equity

Equity	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Equity	Note 7. Equity Tangible Equity Unit (TEU) Offering

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Note 8. Debt Long-term debt consisted of the following: March 31, 2024 December 31, 2023 Incremental Term Facility due 2025 $ 175 $ 175 Incremental Term Facility due 2028 488 489 Incremental Term Facility due 2029 246 247 Term Loan B due 2027 3,827 3,838 Revolving Credit Facility (1) 200 200 Securitization Facility (2) 125 125 4.900% Senior Notes due 2028 (3) 750 750 Unamortized debt issuance costs (46) (50) 5,765 5,774 Less current portion of long-term debt 38 38 Total long-term debt $ 5,727 $ 5,736 (1) Our Revolving Credit Facility provides up to $750 million in borrowing capacity (with incremental capacity if certain conditions are met), bears interest at Term SOFR plus 2.10% and matures in August 2025. (2) Our Securitization Facility is secured and collateralized by our U.S. Net Eligible Receivables Balance, has a maximum borrowing capacity of $300 million, bears interest at Term SOFR plus 1.25% and matures in July 2026. (3) Subsequent to issuance in August 2018, our 4.900% Senior Notes due 2028 have been subject to interest rate increases related to credit rating agency downgrades. As of March 31, 2024, these notes bear interest at a rate of 6.650%. As of March 31, 2024, approximately 78% of our long-term indebtedness bears interest at a fixed rate, including variable-rate debt converted to fixed-rate through the use of interest rate swaps (see Note 9. Financial Instruments for further information). We were in compliance with all of our debt covenants as of March 31, 2024.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Note 9. Financial Instruments To manage our exposure to market risks, such as changes in foreign currency exchange rates and interest rates, 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. We also assess 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 are principally classified in the operating activities section of the condensed consolidated statements of cash flows, consistent with the underlying hedged item. Further, we do not offset derivative assets and liabilities on the condensed consolidated balance sheets. Derivatives not designated as hedges We may enter into foreign exchange forward or option contracts to reduce the effect of fluctuating foreign currency exchange rates. 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 expense, net in the condensed consolidated statements of operations. Forward contracts generally have maturities not exceeding 12 months. As of March 31, 2024 and December 31, 2023, we had outstanding foreign exchange contracts with aggregate notional amounts of $812 million and $891 million, respectively. The amounts of net (losses) gains on derivative instruments not designated as hedging instruments, recorded in other expense, net were as follows: Three Months Ended March 31, 2024 2023 Foreign exchange forward contracts (1) $ (9) $ 2 (1) These amounts were substantially offset in other expense, net by the effect of changing exchange rates on the underlying foreign currency exposures. Derivatives designated as hedges - Net investment hedges In September 2023 we entered into a series of cross-currency fixed interest rate swaps to help mitigate the impact of foreign currency fluctuations on our operations in Switzerland with a combined 1,000 million CHF notional amount with tenors in 2026 and 2027. These instruments were determined to be, and were designated as, effective economic hedges of net investments in our CHF denominated net assets. The fair values of these instruments were estimated based on quoted market values of similar hedges and are classified as Level 2 in the fair value hierarchy (see Note 10. Fair Value for further information). Gains or losses related to these instruments due to spot rate fluctuations are recorded as cumulative translation adjustments as a component of other comprehensive income (loss). Gains and losses will remain in accumulated other comprehensive income (loss) until either the sale or substantial liquidation of the hedged subsidiary. Gains on net investment hedges, net of tax, recorded in other comprehensive (loss) income, were as follows: Three Months Ended March 31, 2024 2023 Cross-currency fixed interest rate swaps $ 62 $ — During the three months ended March 31, 2024, these instruments also generated $8 million of interest income, which was included as a contra interest expense, net of capitalized interest in our condensed consolidated statement of operations. Derivatives designated as hedges - Interest rate swaps To manage our exposure to variable interest rate risk, we utilize interest rate swap contracts to effectively convert our variable-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 our interest rate swaps as cash flow hedges and record them at fair value on the condensed consolidated balance sheets. Changes in the fair value of the hedges are recognized in other comprehensive income (loss) and reclassified into earnings through interest expense, net of capitalized interest at the time earnings are affected by the hedged transaction. Fair value is estimated based on quoted market values of similar hedges and is classified as Level 2 in the fair value hierarchy. We had outstanding interest rate swaps, with aggregate notional amounts of $3,800 million as of both March 31, 2024 and December 31, 2023. As of March 31, 2024, our interest rate swap instruments had maturities ranging between 2026 and 2028. The amounts of gains (losses) on our interest rate swap contracts, net of tax, recorded in other comprehensive (loss) income were as follows: Three Months Ended March 31, 2024 2023 Interest rate swaps $ 63 $ (25) The amounts of gains reclassified from accumulated other comprehensive loss and recognized into earnings through interest expense, net of capitalized interest were as follows: Three Months Ended March 31, 2024 2023 Interest rate swaps $ 31 $ 23 Over the next 12 months, we expect to reclassify a gain of $92 million from accumulated other comprehensive loss into interest expense, net of capitalized interest related to our current and previously settled interest rate swaps. As of March 31, 2024, when factoring in the $3,800 million of variable rate debt converted to fixed-rate through the use of interest rate swaps (excluding the expected future reclassifications to interest expense, net of capitalized interest related to past interest rate swap settlements), the weighted-average effective interest rate on our outstanding indebtedness was 6.40%.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value	Note 10. Fair Value Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. Level 1 fair value measurements are based on quoted prices in active markets for identical assets or liabilities. 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. Our Level 3 fair value measurements are based on unobservable inputs based on little or no market activity. The following table summarizes the fair value information at March 31, 2024 and December 31, 2023, for assets and liabilities measured at fair value on a recurring basis in the respective balance sheet line items, as well as long-term debt, for which fair value is disclosed on a recurring basis: Fair Value Measurements Using Financial statement line item Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair March 31, 2024 Recurring fair value measurements Prepaid expenses and other - derivative instruments $ 66 $ — $ 66 $ — $ 66 Other current liabilities - derivative instruments (74) — (74) — (74) Other current liabilities - contingent consideration (7) — — (7) (7) Other noncurrent liabilities - derivative instruments (17) — (17) — (17) Other noncurrent liabilities - contingent consideration (31) — — (31) (31) Financial instruments not carried at fair value Long-term debt, including current portion (5,811) — (5,815) — (5,815) December 31, 2023 Recurring fair value measurements Prepaid expenses and other - derivative instruments $ 65 $ — $ 65 $ — $ 65 Other current liabilities - derivative instruments (63) — (63) — (63) Other current liabilities - contingent consideration (9) — — (9) (9) Other noncurrent liabilities - derivative instruments (132) — (132) — (132) Other noncurrent liabilities - contingent consideration (31) — — (31) (31) Financial instruments not carried at fair value Long-term debt, including current portion (5,824) — (5,825) — (5,825) Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities at the time of purchase of three months or less. The carrying values of cash and cash equivalents, accounts and other receivables, accounts payable and other current liabilities are a reasonable estimate of their fair values due to the short-term nature of these assets and liabilities. We also had investments without readily determinable fair values and equity method investments, which were classified as other noncurrent assets on our condensed consolidated balance sheets totaling $25 million and $26 million as of March 31, 2024 and December 31, 2023, respectively. These investments are not recorded at fair value on a recurring basis, and as such, are not included in the fair value table above. The fair values of contingent consideration liabilities related to our acquisition of NutriQuest were estimated using the Monte Carlo simulation model, consisting of Level 3 inputs not observable in the market, including estimates relating to revenue forecasts, discount rates and volatility.

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 11. Goodwill The following table summarizes the changes in the carrying amount of goodwill: December 31, 2023 (gross) $ 6,136 Accumulated impairment (1,042) December 31, 2023 (net) 5,094 Reclassification to assets held for sale (1) (482) Foreign currency translation adjustments (134) March 31, 2024 (net) $ 4,478 (1) We reclassified $482 million of goodwill to assets held for sale during the three months ended March 31, 2024, in connection with the expected divestiture of our aqua business. See Note 4. Acquisitions, Divestitures and Other Arrangements for further information.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 12. Income Taxes Three Months Ended March 31, 2024 2023 Income tax (benefit) expense $ (20) $ 5 Effective tax rate (182.2) % 4.4 % For the three months ended March 31, 2024, we recognized an income tax benefit of $20 million. Our effective tax rate of (182.2)% differed from the statutory income tax rate primarily due to the partial release of a valuation allowance attributable to the anticipated sale of our aqua business and a benefit related to the recognition of certain state tax credits. For the three months ended March 31, 2023, we recognized income tax expense of $5 million. Our effective tax rate of 4.4% differed from the statutory income tax rate due to jurisdictional earnings mix of projected income in lower tax jurisdictions, partially offset by losses in the U.S. and a Southeast Asia affiliate for which there was no tax benefit, as valuation allowances had been established in those countries. We were included in Eli Lilly and Company's (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 our initial public offering (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 of tax years 2016 to 2018 began in 2019 and remains ongoing. Final resolution of certain matters is dependent upon several factors, including the potential for formal administrative proceedings.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. 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. Under GAAP, loss contingency provisions are recorded when we deem it probable that we will incur a loss and we are able to formulate a reasonable estimate of that loss. Seresto Class Action Lawsuits 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. 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. In June 2023, the parties agreed on the monetary terms of a potential settlement of the consolidated class action lawsuits, and as a result, a charge of $15 million was recorded. As of December 31, 2023, the parties had agreed on the non-monetary terms of a potential settlement, in addition to the monetary terms agreed to in June 2023. In January 2024, the court preliminarily approved the settlement. The court set a hearing to consider final approval of the settlement in December 2024. If at that time all conditions of the settlement are met, and the settlement is approved, we anticipate the settlement amount will be payable in the first quarter of 2025. As such, the $15 million provision was included within other current liabilities on our condensed consolidated balance sheet as of March 31, 2024. Additional Legal Matters For the legal matters discussed below, we either believe loss is not probable or 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 March 31, 2024 and December 31, 2023, we had no material liabilities established related to the matters discussed below. On May 20, 2020, a shareholder class action lawsuit captioned Hunter v. Elanco Animal Health Inc., et al. ( Hunter ) was filed in the United States District Court for the Southern District of Indiana 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 alleged, 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 sought 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 Therapeutics, Inc. On January 13, 2021, we filed a motion to dismiss, and 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. On December 7, 2022, we filed an opposition to the plaintiffs' motion, and on September 27, 2023, the court denied the plaintiffs' motion for leave, issuing final judgment in favor of Elanco. On October 25, 2023, the plaintiffs filed a notice of appeal to the United Stated Court of Appeals for the Seventh Circuit. We continue to believe the claims made in the case are meritless, and we intend to continue 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 TEUs issued in connection with the public offering. From February 2021 to August 2022, this case was stayed in deference to Hunter . On October 24, 2022, we filed a motion to dismiss. On December 23, 2022, the plaintiffs filed their opposition to the motion to dismiss. Prior to the ruling on the motion to dismiss, on June 8, 2023, the plaintiffs filed a motion for leave to file a second amended complaint, which is now the operative complaint. We filed a motion to dismiss the second amended complaint on August 7, 2023, to which the plaintiffs filed their opposition on October 13, 2023. On April 17, 2024, our motion to dismiss was granted. The dismissal is without prejudice to plaintiffs' right to re-file a claim, and it is possible the plaintiffs will attempt to file a third amended complaint. We continue to believe the claims made in the case are meritless, and we intend to vigorously defend our position. 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. On April 16, 2024, the court granted our motion for summary judgment to exclude all damages subsequent to our acquisition of Bayer Animal Health in August 2020. The trial is scheduled for July 2024. We intend to vigorously defend our position. 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. We have engaged in discussions with the SEC about a possible resolution or settlement of potential disclosure claims. While we have not reached an agreement on a resolution or settlement of the potential disclosure claims, based on the ongoing discussions with the SEC, we believe a loss contingency is both probable and estimable. Accordingly, we have accrued a liability of $15 million as of March 31, 2024, which was an increase of $2.5 million from the liability we had recorded for this matter as of December 31, 2023. This liability was included within other current liabilities on our condensed consolidated balance sheets. It remains uncertain whether an agreement will be reached and the terms of any such agreement. Management continues to believe its actions were appropriate. Other Commitments As of March 31, 2024, we had 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. Final lease payments may vary depending on the actual cost of certain construction activities. Lease commencement is expected in 2025. 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 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 was included in other noncurrent liabilities on our condensed consolidated balance sheets and will be amortized over the lease term beginning on the commencement date and offset future rent expense.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 14. Earnings Per Share We compute basic earnings per share by dividing net income 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 in the first quarter of 2023 through the settlement date of February 1, 2023 (see Note 7. Equity for further discussion). Diluted earnings per share reflects the potential dilution that could have occurred if holders of the unvested equity awards converted their holdings into common stock and that could have occurred if holders of unsettled TEUs had converted their holdings into common stock prior to the February 1, 2023 settlement date. The weighted-average number of potentially dilutive shares outstanding was calculated using the treasury stock method. Potential common shares that would have had the effect of increasing diluted earnings per share were considered to be anti-dilutive and as such, these shares were not included in the calculation of diluted earnings per share. Basic and diluted weighted-average shares outstanding were as follows: Three Months Ended March 31, 2024 2023 Basic weighted-average common shares outstanding (1) 493.2 491.1 Assumed conversion of dilutive common stock equivalents (2) 2.8 1.7 Diluted weighted-average shares outstanding 496.0 492.8 (1) The TEU prepaid stock purchase contracts were convertible into a minimum of 14.3 million shares or a maximum of 17.2 million shares. The minimum 14.3 million shares were included in the calculation of basic weighted-average shares from January 22, 2020 to February 1, 2023. The 17.2 million shares that were ultimately issued have been included in the calculation of basic weighted-average shares outstanding subsequent to the settlement date of February 1, 2023. (2)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 32	$ 103

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the SEC requirements for interim reporting. As permitted under those rules, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the U.S. (GAAP) have been condensed or omitted. The information included in this Form 10-Q should be read in conjunction with our consolidated financial statements and accompanying notes for the year ended December 31, 2023, included in our 2023 Form 10-K . In addition, results for interim periods should not be considered indicative of results for any other interim period or for the full year ending December 31, 2024, or any other future period. 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. 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. Certain reclassifications of prior year information have been made to conform to the current year's presentation.
New Financial Accounting Pronouncements	The following table provides a brief description of accounting standards applicable to us that we have not yet adopted: Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 is intended to improve disclosure requirements related to reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (CODM) for purposes of assessing a segment's profit or loss and deciding how to allocate resources. This new standard applies to all public entities, including entities, like us, with a single reportable segment. This new standard is effective for fiscal years beginning after December 31, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption requires retrospective application. We are currently assessing the impact ASU 2023-07 will have on our consolidated financial statements, including our footnote disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity's operations and related tax risks and its tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact ASU 2023-09 will have on our consolidated financial statements, including our Income Taxes footnote disclosure.

New Financial Accounting Pron_2

New Financial Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
Schedule of Description of Accounting Standards Adopted and Not Yet Adopted	The following table provides a brief description of accounting standards applicable to us that we have not yet adopted: Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 is intended to improve disclosure requirements related to reportable segments, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (CODM) for purposes of assessing a segment's profit or loss and deciding how to allocate resources. This new standard applies to all public entities, including entities, like us, with a single reportable segment. This new standard is effective for fiscal years beginning after December 31, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption requires retrospective application. We are currently assessing the impact ASU 2023-07 will have on our consolidated financial statements, including our footnote disclosures. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity's operations and related tax risks and its tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact ASU 2023-09 will have on our consolidated financial statements, including our Income Taxes footnote disclosure.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Activity in Sales Rebates and Discounts Liability	The following table summarizes the activity in our global sales rebates and discounts liability: Three Months Ended March 31, 2024 2023 Beginning balance $ 367 $ 324 Reduction of revenue 221 209 Payments (266) (204) Foreign currency translation adjustments (4) — Ending balance $ 318 $ 329
Schedule of Revenue Disaggregated by Product Category	The following table summarizes our revenue disaggregated by product category: Three Months Ended March 31, 2024 2023 Pet Health $ 639 $ 675 Farm Animal: Cattle 244 248 Poultry 197 183 Swine 84 102 Aqua 31 40 Total Farm Animal 556 573 Contract Manufacturing (1) 10 9 Revenue $ 1,205 $ 1,257 (1)
Schedule of Revenue Disaggregated by Geographic Area	The following table summarizes our revenue disaggregated by geographic area: Three Months Ended March 31, 2024 2023 United States $ 531 $ 543 International 674 714 Revenue $ 1,205 $ 1,257

Acquisitions, Divestitures an_2

Acquisitions, Divestitures and Other Arrangements (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Purchase Consideration	The composition of the purchase price was as follows: Up-front cash consideration $ 16 Deferred cash consideration paid January 4, 2024 5 Fair value of contingent consideration 38 Total purchase consideration $ 59
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of assets acquired as of the acquisition date: Inventories $ 3 Intangible assets: Marketed products 29 Acquired in-process research and development (IPR&D) 9 Other intangible assets 15 Total identifiable assets 56 Goodwill 3 Total consideration transferred $ 59 The following table summarizes the preliminary amounts recognized for assets acquired as of the acquisition date: Inventories $ 3 Definite-lived intangible assets 15 Total identifiable assets 18 Goodwill 1 Total consideration transferred $ 19
Summary of Major Assets Classified as Held for Sale	As of March 31, 2024, the carrying amounts of the following major assets were classified as held for sale on our condensed consolidated balance sheet: Inventories $ 45 Goodwill 482 Other intangibles, net 50 Property and equipment, net 66 Other assets 8 Total assets held for sale $ 651

Asset Impairment, Restructuri_2

Asset Impairment, Restructuring and Other Special Charges (Tables)	3 Months Ended
	Mar. 31, 2024
Restructuring and Related Activities [Abstract]
Schedule of Asset Impairment, Restructuring and Other Special Charges	Components of asset impairment, restructuring and other special charges were as follows: Three Months Ended March 31, 2024 2023 Restructuring charges (1) $ 39 $ — Acquisition and divestiture-related charges (2) 7 40 Total expense $ 46 $ 40 (1) Restructuring charges in 2024 primarily related to expected cash-based severance costs associated with a restructuring program approved and announced in February 2024 intended to reallocate resources by shifting international resources from farm animal to pet health. This restructuring program has also resulted in changes in how we operate in and sell into the Argentina market, among others. (2) Acquisition and divestiture-related charges included transaction costs directly related to acquiring or divesting businesses, such as expenditures for banking, legal, accounting, consulting and other similar services and integration or separation charges, inclusive of system and process integration or carve-out costs, product transfers and costs related to the implementation of new systems, programs and processes.
Schedule of Activity in Reserves	The following table summarizes the activity in our reserves established in connection with restructuring activities: Balance at December 31, 2023 $ 7 Charges 39 Cash paid (6) Balance at March 31, 2024 $ 40

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: March 31, 2024 December 31, 2023 Finished products $ 797 $ 857 Work in process 796 814 Raw materials and supplies 109 128 Total 1,702 1,799 Decrease to LIFO cost (64) (64) Inventories $ 1,638 $ 1,735

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following: March 31, 2024 December 31, 2023 Incremental Term Facility due 2025 $ 175 $ 175 Incremental Term Facility due 2028 488 489 Incremental Term Facility due 2029 246 247 Term Loan B due 2027 3,827 3,838 Revolving Credit Facility (1) 200 200 Securitization Facility (2) 125 125 4.900% Senior Notes due 2028 (3) 750 750 Unamortized debt issuance costs (46) (50) 5,765 5,774 Less current portion of long-term debt 38 38 Total long-term debt $ 5,727 $ 5,736 (1) Our Revolving Credit Facility provides up to $750 million in borrowing capacity (with incremental capacity if certain conditions are met), bears interest at Term SOFR plus 2.10% and matures in August 2025. (2) Our Securitization Facility is secured and collateralized by our U.S. Net Eligible Receivables Balance, has a maximum borrowing capacity of $300 million, bears interest at Term SOFR plus 1.25% and matures in July 2026. (3) Subsequent to issuance in August 2018, our 4.900% Senior Notes due 2028 have been subject to interest rate increases related to credit rating agency downgrades. As of March 31, 2024, these notes bear interest at a rate of 6.650%.

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Gain (Loss), Net of Tax	The amounts of net (losses) gains on derivative instruments not designated as hedging instruments, recorded in other expense, net were as follows: Three Months Ended March 31, 2024 2023 Foreign exchange forward contracts (1) $ (9) $ 2 (1) These amounts were substantially offset in other expense, net by the effect of changing exchange rates on the underlying foreign currency exposures. Three Months Ended March 31, 2024 2023 Cross-currency fixed interest rate swaps $ 62 $ — Three Months Ended March 31, 2024 2023 Interest rate swaps $ 63 $ (25) The amounts of gains reclassified from accumulated other comprehensive loss and recognized into earnings through interest expense, net of capitalized interest were as follows: Three Months Ended March 31, 2024 2023 Interest rate swaps $ 31 $ 23

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value Information	The following table summarizes the fair value information at March 31, 2024 and December 31, 2023, for assets and liabilities measured at fair value on a recurring basis in the respective balance sheet line items, as well as long-term debt, for which fair value is disclosed on a recurring basis: Fair Value Measurements Using Financial statement line item Carrying Quoted Prices in Active Markets for Identical Assets Significant Significant Fair March 31, 2024 Recurring fair value measurements Prepaid expenses and other - derivative instruments $ 66 $ — $ 66 $ — $ 66 Other current liabilities - derivative instruments (74) — (74) — (74) Other current liabilities - contingent consideration (7) — — (7) (7) Other noncurrent liabilities - derivative instruments (17) — (17) — (17) Other noncurrent liabilities - contingent consideration (31) — — (31) (31) Financial instruments not carried at fair value Long-term debt, including current portion (5,811) — (5,815) — (5,815) December 31, 2023 Recurring fair value measurements Prepaid expenses and other - derivative instruments $ 65 $ — $ 65 $ — $ 65 Other current liabilities - derivative instruments (63) — (63) — (63) Other current liabilities - contingent consideration (9) — — (9) (9) Other noncurrent liabilities - derivative instruments (132) — (132) — (132) Other noncurrent liabilities - contingent consideration (31) — — (31) (31) Financial instruments not carried at fair value Long-term debt, including current portion (5,824) — (5,825) — (5,825)

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in the carrying amount of goodwill: December 31, 2023 (gross) $ 6,136 Accumulated impairment (1,042) December 31, 2023 (net) 5,094 Reclassification to assets held for sale (1) (482) Foreign currency translation adjustments (134) March 31, 2024 (net) $ 4,478 (1) We reclassified $482 million of goodwill to assets held for sale during the three months ended March 31, 2024, in connection with the expected divestiture of our aqua business. See Note 4. Acquisitions, Divestitures and Other Arrangements for further information.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Provision for Taxes on Income	Three Months Ended March 31, 2024 2023 Income tax (benefit) expense $ (20) $ 5 Effective tax rate (182.2) % 4.4 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic And Diluted Weighted-average Shares Outstanding	Basic and diluted weighted-average shares outstanding were as follows: Three Months Ended March 31, 2024 2023 Basic weighted-average common shares outstanding (1) 493.2 491.1 Assumed conversion of dilutive common stock equivalents (2) 2.8 1.7 Diluted weighted-average shares outstanding 496.0 492.8 (1) The TEU prepaid stock purchase contracts were convertible into a minimum of 14.3 million shares or a maximum of 17.2 million shares. The minimum 14.3 million shares were included in the calculation of basic weighted-average shares from January 22, 2020 to February 1, 2023. The 17.2 million shares that were ultimately issued have been included in the calculation of basic weighted-average shares outstanding subsequent to the settlement date of February 1, 2023. (2)

Revenue - Activity in Sales Reb

Revenue - Activity in Sales Rebates and Discounts Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Change In Contract With Customer, Liability [Roll Forward]
Beginning balance		$ 324
Reduction of revenue	$ 221	209
Payments	(266)	(204)
Foreign currency translation adjustments	(4)	0
Ending balance	$ 318	$ 329

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 1,205	$ 1,257
United States
Disaggregation of Revenue [Line Items]
Revenue	531	543
International
Disaggregation of Revenue [Line Items]
Revenue	674	714
Pet Health
Disaggregation of Revenue [Line Items]
Revenue	639	675
Farm Animal
Disaggregation of Revenue [Line Items]
Revenue	556	573
Cattle
Disaggregation of Revenue [Line Items]
Revenue	244	248
Poultry
Disaggregation of Revenue [Line Items]
Revenue	197	183
Swine
Disaggregation of Revenue [Line Items]
Revenue	84	102
Aqua
Disaggregation of Revenue [Line Items]
Revenue	31	40
Contract Manufacturing
Disaggregation of Revenue [Line Items]
Revenue	$ 10	$ 9

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Accounts receivable, net	$ 988		$ 842
Product Sales
Concentration Risk [Line Items]
Accounts receivable, net	$ 93		$ 78
Product Return Concentration Risk | Net revenue | Global Customers
Concentration Risk [Line Items]
Concentration risk	1%	1%
Customer Concentration Risk | Revenue | Single Customer
Concentration Risk [Line Items]
Concentration risk	9%	9%

Acquisitions, Divestitures an_3

Acquisitions, Divestitures and Other Arrangements - NutriQuest US Acquisition & NutriQuest Brazil Acquisition (Details) - USD ($) $ in Millions	Aug. 01, 2023	Jan. 03, 2023
NutriQuest, LLC
Business Acquisition [Line Items]
Total purchase consideration		$ 59
Fair value of contingent consideration		$ 38
Weighted average useful life		12 years
Up-front cash consideration		$ 16
NutriQuest, LLC | Maximum
Business Acquisition [Line Items]
Contingent consideration liability		$ 85
NutriQuest Brazil
Business Acquisition [Line Items]
Total purchase consideration	$ 19
Contingent consideration liability	$ 16
Weighted average useful life	9 years
Up-front cash consideration	$ 3

Acquisitions, Divestitures an_4

Acquisitions, Divestitures and Other Arrangements - Schedule of The Composition of The Purchase Consideration (Details) - NutriQuest, LLC $ in Millions	Jan. 03, 2023 USD ($)
Business Acquisition [Line Items]
Up-front cash consideration	$ 16
Deferred cash consideration paid January 4, 2024	5
Fair value of contingent consideration	38
Total purchase consideration	$ 59

Acquisitions, Divestitures an_5

Acquisitions, Divestitures and Other Arrangements - Amounts Recognized for Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023	Aug. 01, 2023	Jan. 03, 2023
Business Acquisition [Line Items]
Goodwill	$ 4,478	$ 5,094
NutriQuest, LLC
Business Acquisition [Line Items]
Inventories				$ 3
Total identifiable assets				56
Goodwill				3
Total consideration transferred				59
NutriQuest, LLC | Marketed products
Business Acquisition [Line Items]
Definite-lived intangible assets				29
NutriQuest, LLC | Acquired in-process research and development (IPR&D)
Business Acquisition [Line Items]
Definite-lived intangible assets				9
NutriQuest, LLC | Other intangible assets
Business Acquisition [Line Items]
Definite-lived intangible assets				$ 15
NutriQuest Brazil
Business Acquisition [Line Items]
Inventories			$ 3
Definite-lived intangible assets			15
Total identifiable assets			18
Goodwill			1
Total consideration transferred			$ 19

Acquisitions, Divestitures an_6

Acquisitions, Divestitures and Other Arrangements - Divestitures (Details) $ in Millions	1 Months Ended		3 Months Ended		12 Months Ended
	Aug. 31, 2024 USD ($)	Feb. 29, 2024 USD ($) employee	Mar. 31, 2024 USD ($) reporting_unit	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021	Dec. 31, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestiture proceeds			$ 66	$ 0
Number of reporting units | reporting_unit			1
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Shawnee and Speke
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Duration over which proceeds will be received						3 years
Divestiture proceeds		$ 66
Net receivable							$ 69
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Shawnee and Speke | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Additional proceeds	$ 3
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Shawnee and Speke | TriRx
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestiture proceeds					$ 13
Discontinued Operations, Disposed of by Sale | Aqua Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received in agreement to divest		$ 1,300
Number of employees | employee		280
Termination fee		$ 55
Revenue			$ 31	$ 40
Discontinued Operations, Disposed of by Sale | Aqua Business | Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain		600
Discontinued Operations, Disposed of by Sale | Aqua Business | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain		$ 650

Acquisitions, Divestitures an_7

Acquisitions, Divestitures and Other Arrangements - Assets Held for Sale (Details) - Aqua Business - Held for Sale $ in Millions	Mar. 31, 2024 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventories	$ 45
Goodwill	482
Other intangibles, net	50
Property and equipment, net	66
Other assets	8
Total assets held for sale	$ 651

Asset Impairment, Restructuri_3

Asset Impairment, Restructuring and Other Special Charges - Component of Asset Impairment, Restructuring and Other Special Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring charges	$ 39	$ 0
Acquisition and divestiture-related charges	7	40
Total expense	$ 46	$ 40

Asset Impairment, Restructuri_4

Asset Impairment, Restructuring and Other Special Charges - Activity in Reserves (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Reserve [Roll Forward]
Charges	$ 39	$ 0
Employee Severance
Restructuring Reserve [Roll Forward]
Balance at beginning of period	7
Charges	39
Cash paid	(6)
Balance at end of period	$ 40

Asset Impairment, Restructuri_5

Asset Impairment, Restructuring and Other Special Charges - Narrative (Details) - Employee Severance - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 40	$ 7
Other Current Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 27

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished products	$ 797	$ 857
Work in process	796	814
Raw materials and supplies	109	128
Total	1,702	1,799
Decrease to LIFO cost	(64)	(64)
Inventories	$ 1,638	$ 1,735

Equity (Details)

Equity (Details) - Tangible Equity Unit - $ / shares	1 Months Ended
	Jan. 31, 2020	Feb. 01, 2023
Class of Stock [Line Items]
Number of shares sold in public offering (in shares)	11,000,000
Offering price (usd per share)	$ 50
Settlement rate		156.25%
Shares issued upon conversion of prepaid stock purchase contracts (in shares)		17,000,000
Maximum
Class of Stock [Line Items]
Average applicable market value necessary to be included in calculation of diluted shares outstanding (usd per share)		$ 32

Debt - Long-term Debt (Details)

Debt - Long-term Debt (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Aug. 31, 2018
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (46)	$ (50)
Total debt	5,765	5,774
Less current portion of long-term debt	38	38
Total long-term debt	5,727	5,736
Line of Credit | Secured Debt
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 300
Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Line of Credit | Secured Debt | Incremental Term Facility due 2025
Debt Instrument [Line Items]
Long-term debt, gross	$ 175	175
Line of Credit | Secured Debt | Incremental Term Facility due 2028
Debt Instrument [Line Items]
Long-term debt, gross	488	489
Line of Credit | Secured Debt | Incremental Term Facility due 2029
Debt Instrument [Line Items]
Long-term debt, gross	246	247
Line of Credit | Secured Debt | Securitization Facility
Debt Instrument [Line Items]
Long-term debt, gross	125	125
Line of Credit | Term Loan B due 2027
Debt Instrument [Line Items]
Long-term debt, gross	3,827	3,838
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	200	200
Credit facility, maximum borrowing capacity	$ 750
Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.10%
Senior Notes | Senior Notes due 2028
Debt Instrument [Line Items]
Interest rate	4.90%		4.90%
Long-term debt, gross	$ 750	$ 750
Effective interest rate	6.65%

Debt - Narrative (Details)

Debt - Narrative (Details)	Mar. 31, 2024
Debt Disclosure [Abstract]
Percentage of long term debt bearing fixed interest	78%

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) SFr in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 CHF (SFr)
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gains	$ 92
Weighted Average
Derivative Instruments, Gain (Loss) [Line Items]
Effective interest rate	6.40%
Cross-currency fixed interest rate swap | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 812	$ 891
Cross-currency fixed interest rate swap | Designated as Hedging Instrument | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount | SFr			SFr 1,000
Investment income interest	8
Interest Rate Swap | Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 3,800	$ 3,800

Financial Instruments - Net Los

Financial Instruments - Net Losses/Gains on Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cross-currency fixed interest rate swap | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Net (losses) gains on derivative instruments	$ (9)	$ 2
Cross-currency fixed interest rate swap | Designated as Hedging Instrument | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain, net of tax	62	0
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Gain, net of tax	63	(25)
Reclassification from accumulated other comprehensive income, current period, net of tax	$ 31	$ 23

Fair Value - Schedule of Fair V

Fair Value - Schedule of Fair Value Information (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
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 Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	(5,815)	(5,825)
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	(5,811)	(5,824)
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, including current portion	(5,815)	(5,825)
Prepaid expenses and other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cross-currency fixed interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Prepaid expenses and other | Significant Other Observable Inputs (Level 2) | Cross-currency fixed interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	66	65
Prepaid expenses and other | Significant Unobservable Inputs (Level 3) | Cross-currency fixed interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Prepaid expenses and other | Carrying Amount | Cross-currency fixed interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	66	65
Prepaid expenses and other | Fair Value | Cross-currency fixed interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	66	65
Other current liabilities | 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)	0	0
Contingent consideration	0	0
Other current liabilities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(74)	(63)
Contingent consideration	0	0
Other current liabilities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Contingent consideration	(7)	(9)
Other current liabilities | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(74)	(63)
Contingent consideration	(7)	(9)
Other current liabilities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(74)	(63)
Contingent consideration	(7)	(9)
Other noncurrent liabilities | 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)	0	0
Contingent consideration	0	0
Other noncurrent liabilities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(17)	(132)
Contingent consideration	0	0
Other noncurrent liabilities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	0	0
Contingent consideration	(31)	(31)
Other noncurrent liabilities | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(17)	(132)
Contingent consideration	(31)	(31)
Other noncurrent liabilities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities)	(17)	(132)
Contingent consideration	$ (31)	$ (31)

Fair Value - Narrative (Details

Fair Value - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Equity method investments	$ 25	$ 26

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill, gross		$ 6,136
Accumulated impairment		$ (1,042)
Goodwill [Roll Forward]
Beginning balance	$ 5,094
Reclassification to assets held for sale	(482)
Foreign currency translation adjustments	(134)
Ending balance	4,478
Reclassification to assets held for sale	482
Held for Sale | Aqua Business
Goodwill [Roll Forward]
Reclassification to assets held for sale	(482)
Reclassification to assets held for sale	$ 482

Income Taxes - Provision for Ta

Income Taxes - Provision for Taxes on Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (20)	$ 5
Effective tax rate	(182.20%)	4.40%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (20)	$ 5
Effective tax rate	(182.20%)	4.40%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Liabilities related to litigation		$ 0	$ 0
Operating lease, lease not yet commenced liability		$ 378,000,000
Lessee, operating lease, lease not yet commenced, term of contract		25 years
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
Seresto Class Action Lawsuits
Loss Contingencies [Line Items]
Accrual charge	$ 15,000,000
Loss contingency accrual		15,000,000
SEC Regulatory Matters
Loss Contingencies [Line Items]
Loss contingency accrual		15,000,000
Increase (decrease) in loss contingency accrual		$ 2,500,000

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		14 Months Ended	36 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Feb. 01, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted-average common shares outstanding (in shares)	493.2	491.1
Assumed conversion of dilutive common stock equivalents (in shares)	2.8	1.7
Diluted weighted-average shares outstanding (in shares)	496	492.8
Potential common shares excluded from calculation (in shares)	0.8	1.4
Tangible Equity Unit
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion of tangible equity units (TEUs) into common stock (in shares)			17.2
Minimum | Tangible Equity Unit
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion of tangible equity units (TEUs) into common stock (in shares)	14.3			14.3
Maximum | Tangible Equity Unit
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion of tangible equity units (TEUs) into common stock (in shares)	17.2