Covetrus (CVET) 10-Q 11 Aug 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
Entity [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-38794
Entity Registrant Name	COVETRUS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-1448706
Entity Address, Address Line One	7 Custom House Street
Entity Address, City or Town	Portland
Entity Address, State or Province	ME
Entity Address, Postal Zip Code	04101
City Area Code	888
Local Phone Number	280-2221
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CVET
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		112,826,098
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Central Index Key	0001752836
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 414	$ 130
Accounts receivable, net of allowance of $X and $X	470	426
Inventories, net	484	636
Other receivables	75	67
Prepaid expenses and other	41	30
Assets held for sale	0	51
Total current assets	1,484	1,340
Non-current assets:
Property and equipment, net of accumulated depreciation of $X and $X	102	93
Operating lease right-of-use assets, net (Note 5)	127	84
Goodwill	1,154	1,154
Other intangibles, net (Note 6)	572	643
Investments and other	87	47
Total assets	3,526	3,361
Current liabilities:
Accounts payable	429	520
Current maturities of long-term debt and other borrowings (Note 7)	31	62
Accrued payroll and related liabilities	50	44
Accrued taxes	48	18
Other current liabilities	162	164
Liabilities held for sale	0	21
Total current liabilities	720	829
Non-current liabilities:
Long-term debt and other borrowings, net (Note 7)	1,095	1,125
Deferred taxes	41	47
Other liabilities	141	94
Total liabilities	1,997	2,095
Commitments and contingencies (Note 10)
Mezzanine equity:
Redeemable non-controlling interests (Note 11)	9	10
Redeemable series A convertible preferred stock, $0.01 par value, $1,000 per share liquidation preference, 250,000 shares authorized, issued, and outstanding as of June 30, 2020 (Note 12)	244	0
Shareholders' equity:
Common stock, $0.01 par value per share, 675,000,000 shares authorized; 112,674,657 shares issued and outstanding as of June 30, 2020; 111,620,507 shares issued and outstanding as of December 31, 2019	1	1
Accumulated other comprehensive loss (Note 13)	(107)	(86)
Additional paid-in capital	2,404	2,381
Accumulated deficit	(1,022)	(1,040)
Total shareholders’ equity	1,276	1,256
Total liabilities, mezzanine equity, and shareholders’ equity	$ 3,526	$ 3,361

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - Parenthetical - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, reserves	$ 6	$ 8
Property and equipment, accumulated depreciation	$ 94	$ 84
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized (in shares)	250,000	250,000
Preferred stock shares issued (in shares)	250,000	250,000
Preferred stock, shares outstanding (in shares)	250,000	250,000
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	675,000,000	675,000,000
Common stock, shares issued (in shares)	112,674,657	111,620,507
Common stock, shares outstanding (in shares)	112,674,657	111,620,507

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales		$ 1,026	$ 1,009	$ 2,091	$ 1,950
Cost of sales		834	816	1,696	1,580
Gross profit		192	193	395	370
Operating expenses:
Selling, general and administrative		196	198	419	384
Operating loss		(4)	(5)	(24)	(14)
Other income (expense):
Interest income		1	2	1	3
Interest expense		(14)	(15)	(28)	(26)
Other Nonoperating Income (Expense)		76	13	75	15
Income (loss) before taxes and equity in earnings of affiliates		59	(5)	24	(22)
Income tax benefit		(6)	(5)	(4)	(1)
Equity in net earnings of affiliates (Note 3)		1	0	1	0
Net income (loss)		54	(10)	21	(23)
Less: net income attributable to redeemable non-controlling interests		0	0	(1)	0
Net income (loss) attributable to Covetrus	[1]	$ 54	$ (10)	$ 20	$ (23)
Earnings (loss) per share attributable to Covetrus: (Note 15)
Basic (in usd per share)		$ 0.40	$ (0.09)	$ 0.15	$ (0.22)
Diluted (in usd per share)		$ 0.40	$ (0.09)	$ 0.15	$ (0.22)
Weighted-average common shares outstanding:
Basic (in shares)		112	112	112	103
Diluted (in shares)		113	112	113	103
[1]	(a) Net income earned from January 1, 2019 through February 7, 2019 is attributed to the Former Parent as it was the sole shareholder prior to February 7, 2019.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 54	$ (10)	$ 21	$ (23)
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss)	6	4	(16)	5
Unrealized gain (loss) on derivative instruments	1	0	(7)	0
Total other comprehensive income (loss)	7	4	(23)	5
Comprehensive income (loss)	61	(6)	(2)	(18)
Comprehensive (income) loss attributable to redeemable non-controlling interests:
Net income	0	0	(1)	0
Foreign currency translation (gain) loss	0	0	(2)	1
Comprehensive income attributable to redeemable non-controlling interests	0	0	(3)	1
Comprehensive income (loss) attributable to Covetrus	$ 61	$ (6)	$ (5)	$ (17)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions		Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Net Former Parent Investment	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 29, 2018			0
Beginning balance at Dec. 29, 2018		$ 1,494	$ 0	$ 0	$ 0	$ 1,576	$ (82)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Covetrus	[1]	(23)			(33)	10
Dividend to Former Parent		(1,174)		(21)		(1,153)
Issuance of shares at Separation (including share sale investors) (in shares)			71,693,426
Issuance of shares at Separation (including Share Sale investors)		0	$ 1	608		(609)
Issuance of shares in connection with the Acquisition (in shares)			39,742,089
Issuance of shares in connection with the Acquisition		1,772		1,772
Shares held in escrow expected to be canceled		(30)		(30)
Net Increase (Decrease) In Parent Investment		176				176
Issuance of shares in connection with share-based compensation plans (in shares)			496,976
Issuance of shares in connection with share-based compensation plans		2		2
Share-based compensation		25		25
Dividends declared on Series A Preferred Stock		0
Other comprehensive income (loss)		5					5
Ending balance (in shares) at Jun. 30, 2019			111,932,491
Ending balance at Jun. 30, 2019		2,247	$ 1	2,356	(33)	0	(77)
Beginning balance (in shares) at Mar. 31, 2019			111,576,343
Beginning balance at Mar. 31, 2019		2,294	$ 1	2,395	(21)	0	(81)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Covetrus	[1]	(10)			(12)	2
Dividend to Former Parent		(21)		(21)		0
Shares held in escrow expected to be canceled		(30)		(30)
Net Increase (Decrease) In Parent Investment		(2)				(2)
Issuance of shares in connection with share-based compensation plans (in shares)			356,148
Issuance of shares in connection with share-based compensation plans		2		2
Share-based compensation		10		10
Dividends declared on Series A Preferred Stock		0
Other comprehensive income (loss)		4					4
Ending balance (in shares) at Jun. 30, 2019			111,932,491
Ending balance at Jun. 30, 2019		$ 2,247	$ 1	2,356	(33)	$ 0	(77)
Beginning balance (in shares) at Dec. 31, 2019		111,620,507	111,620,507
Beginning balance at Dec. 31, 2019		$ 1,256	$ 1	2,381	(1,040)		(86)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Covetrus	[1]	20			20
Issuance of shares in connection with share-based compensation plans (in shares)			1,054,150
Issuance of shares in connection with share-based compensation plans		4		4
Share-based compensation		19		19
Dividends declared on Series A Preferred Stock		(2)			(2)
Other comprehensive income (loss)		$ (21)					(21)
Ending balance (in shares) at Jun. 30, 2020		112,674,657	112,674,657
Ending balance at Jun. 30, 2020		$ 1,276	$ 1	2,404	(1,022)		(107)
Beginning balance (in shares) at Mar. 31, 2020			111,854,439
Beginning balance at Mar. 31, 2020		1,201	$ 1	2,390	(1,074)		(116)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Covetrus	[1]	54			54
Dividend to Former Parent		(2)
Issuance of shares in connection with share-based compensation plans (in shares)			820,218
Issuance of shares in connection with share-based compensation plans		4		4
Share-based compensation		10		10
Dividends declared on Series A Preferred Stock		(2)			(2)
Other comprehensive income (loss)		$ 9					9
Ending balance (in shares) at Jun. 30, 2020		112,674,657	112,674,657
Ending balance at Jun. 30, 2020		$ 1,276	$ 1	$ 2,404	$ (1,022)		$ (107)
[1]	(a) Net income earned from January 1, 2019 through February 7, 2019 is attributed to the Former Parent as it was the sole shareholder prior to February 7, 2019.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ 21	$ (23)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	82	71
Amortization of right-of-use assets	12	10
Gain on divestiture of a business	(73)	0
Share-based compensation expense	19	25
Benefit for deferred income taxes	(2)	(9)
Gain on affiliate investment	0	(11)
Amortization of debt issuance costs	3	3
Other	(2)	0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(56)	(13)
Inventories, net	130	21
Other assets and liabilities	(14)	(77)
Accounts payable and accrued expenses	(66)	6
Net cash provided by operating activities	54	3
Cash flows from investing activities:
Purchases of property and equipment	(24)	(21)
Payments related to equity investments and business acquisitions, net of cash acquired	(13)	(25)
Proceeds from Divestiture of Businesses	104	0
Proceeds from sale of property and equipment	4	1
Net cash provided by (used for) investing activities	71	(45)
Cash flows from financing activities:
Proceeds from revolving credit facility	190	0
Repayments of Long-term Lines of Credit	(190)	0
Proceeds from issuance of debt	0	1,220
Principal payments of debt	(62)	(43)
Debt issuance and amendment costs	(5)	(24)
Dividend paid to Former Parent	0	(1,174)
Issuance of common shares in connection with share-based compensation plans	4	3
Net transfers from Former Parent	0	165
Proceeds from Issuance of Preferred Stock and Preference Stock	250	0
Payments of Stock Issuance Costs	(6)	0
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	(2)	0
Acquisition payment	(17)	0
Acquisitions of non-controlling interests in subsidiaries	0	(74)
Net cash provided by financing activities	162	73
Effect of exchange rate changes on cash and cash equivalents	(3)	1
Net change in cash and cash equivalents	284	32
Cash and cash equivalents, beginning of period	130	23
Cash and cash equivalents, end of period	414	55
Supplemental disclosures of cash flows information:
Interest	23	22
Income taxes	10	10
Amounts included in the measurement of operating lease liabilities	13	12
Right-of-use assets obtained in exchange for new operating lease liabilities	57	71
Noncash or Part Noncash Divestiture, Amount of Consideration Received	$ 15	$ 0

Business Overview and Significa

Business Overview and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Business Overview and Significant Accounting Policies	Business Overview and Significant Accounting Policies Business Covetrus, Inc. (“Covetrus,” “Company,” “we,” “our,” “us,” or “ourselves”) is a global animal-health technology and services company dedicated to supporting the companion, equine, and large-animal veterinary markets. On February 7, 2019, Covetrus became an independent company through the consummation of the spin-off by Henry Schein (“Former Parent”) of its animal-health business (“Animal Health Business”) and the completion of its acquisition of Direct Vet Marketing, Inc. (d/b/a Vets First Choice) (“Vets First Choice”). On February 8, 2019, Covetrus began trading on the Nasdaq Stock Market. Accordingly, results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”) reflect the operations of the Animal Health Business from January 1, 2019 to June 30, 2019 and Vets First Choice for the period from February 8, 2019 to June 30, 2019. Basis of Presentation and Principles of Consolidation The accompanying balance sheet as of December 31, 2019, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements as of and for the six months ended June 30, 2020, have been prepared in accordance with applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Pursuant to those rules and regulations, we omitted certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP. In our opinion, the accompanying condensed consolidated financial statements reflect all recurring adjustments and transactions necessary for a fair statement of our financial position, results of operations, and cash flows for the interim periods presented. Such operating results are not necessarily indicative of annual or future results. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 (“Form 10-K”) filed with the SEC on March 3, 2020. The accompanying unaudited condensed consolidated financial statements include the operations of the Company, as well as those of our wholly-owned and majority-owned subsidiaries from their respective dates of inception or acquisition. All significant intercompany transactions and balances were eliminated in consolidation. Investments in unconsolidated affiliates, which are 20% to 50.01% owned, or investments of less than 20% in which we could influence the operating or financial decisions, are accounted for under the equity method. Certain prior period amounts were reclassified or rounded to conform to the presentation of the current period. Redeemable Convertible Preferred Stock We classify our redeemable convertible preferred stock as mezzanine equity on our condensed consolidated balance sheets because it is redeemable at the option of holders upon a change of control as defined in the Certificate of Designation, Preferences and Rights for the Series A Preferred Stock (the “Certificate of Designations”), which is considered an event outside of our control. We recorded redeemable convertible preferred stock at fair value upon issuance, net of issuance costs. Our redeemable convertible preferred stock is not currently redeemable, nor is it probable of redemption. If and when a change of control becomes probable, we will accrete the redeemable convertible preferred stock to redemption value. Accounting Pronouncements Adopted • As of January 1, 2019, we adopted Accounting Standards Codification Topic 326, Credit Losses (“Topic 326”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including accounts receivable. Topic 326 is effective for interim and annual reporting periods beginning after December 15, 2019 and is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to Retained earnings (Accumulated deficit) as of the beginning of the first reporting period in which the guidance of Topic 326 is effective. The adoption of Topic 326 did not have a material impact on the results of our condensed consolidated financial statements. To be Adopted • ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” removes specific technical exceptions to general principles found in Topic 740, items that often produce information that investors have a hard time understanding and simplifies the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are evaluating the anticipated impact of this standard on our condensed consolidated financial statements as well as timing of adoption. • ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”). The standard is currently effective and upon adoption may be applied prospectively to contract modifications made on or before December 31, 2022. We are evaluating the impact of the LIBOR transition and this optional relief guidance on our condensed consolidated financial statements.

Novel Coronavirus Disease 2019

Novel Coronavirus Disease 2019 ("COVID-19")	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Novel Coronavirus Disease (COVID-19)	Novel Coronavirus Disease 2019 (“COVID-19”) The COVID-19 pandemic has resulted in social distancing and other measures that were instituted in various localities around the world. These measures led to phased temporary closures of non-essential businesses throughout many of the regions in which we conduct operations. However, veterinary care has been deemed an essential business in most of these regions and we continue to deliver products and services to our customers and their animal-owner clients. In addition, most of our customers are generally able to continue their operations through new social distancing guidelines which, depending on local regulations, can include telehealth and animal curbside check-in and drop-off at clinics. As a result, through June 30, 2020, we experienced limited disruption to our results of operations from the COVID-19 pandemic. However, the COVID-19 pandemic has created volatility and unpredictability to our business, including shifts in timing and channel mix, reduced travel and entertainment expenses due to travel restrictions, as well as other changes. We believe our allowance for credit losses related to our accounts receivable is adequate as of June 30, 2020, due to the essential nature of our customers' businesses, as noted above, as well as the historic behavior of our large customer base. As the COVID-19 pandemic continues, there could be an increase in the aging of our accounts receivable, however, we do not anticipate a significant increase in defaults for such accounts receivable. During the first quarter ended March 31, 2020, we experienced a sustained decline in our share price and a resulting decrease in our market capitalization due to the overall macroeconomic effects of the COVID-19 pandemic. Due to this overall market decline and the uncertainty surrounding COVID-19, we concluded that a triggering event occurred and conducted an interim impairment review of our goodwill as of March 31, 2020. We tested for goodwill impairment by quantitatively comparing the fair value of our North America reporting unit (the only reporting unit currently bearing goodwill) to its carrying amount. Using the income-based approach, fair value exceeded the carrying amount as of March 31, 2020. We did not experience triggering events during the second quarter ended June 30, 2020. We took the following actions to help ensure that our business has flexibility to mitigate potential effects from continued global economic pressure: • During the quarter ended March 31, 2020, we borrowed funds under our revolving line of credit to increase our cash position and provide flexibility. In May 2020, we used a portion of the $244 million in aggregate net proceeds from the issuance of our Series A Convertible Preferred Stock to repay borrowings under our revolving line of credit. See Note 7 - Long-term Debt and Other Borrowings, Net and Note 12 - Redeemable Series A Convertible Preferred Stock. • We reduced our non-critical, near-term planned capital expenditures. • We negotiated for extended payment terms on certain contracts. • We managed our inventory levels in line with expected demand. • We instituted cost containment measures including temporary executive, board, and other senior-level employee compensation reductions, employee furloughs in certain European countries, certain shift eliminations, a temporary hiring freeze, discretionary spending deferrals, deferred payroll taxes as available under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and suspended our 401(k)-employer match. Some of these actions have been eased alongside our improved business performance and the recovery in our end-market. For example, in July, we returned to pre-COVID-19 compensation levels and, in August, we expect to reinstate our 401(k)-employer match. Hiring for our business was strictly limited, especially in response to the COVID-19 pandemic; however, we are relaxing the restrictions we instituted as part of our temporary hiring freeze. We continue to monitor our business performance and intend to take a cautious, but balanced approach in managing our expenses in light of uncertainty created by the COVID-19 pandemic. Risk and Uncertainties The duration and severity of COVID-19-related potential disruptions and the actions we have taken, and may take in the future, in response thereto, involve risks and uncertainties, and it is not possible at this time to estimate the impact that COVID-19 could have on our business. The impact of COVID-19 on various business activities in affected countries could adversely affect our estimates, results of operations, and financial condition.

Divestiture and Equity Method I

Divestiture and Equity Method Investment	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Divestiture and Equity Method Investment	Divestiture and Equity Method Investment Divestiture On April 1, 2020, we completed the divestiture of our scil animal-care business (“scil”) to Heska Corporation for $110 million pursuant to an amended purchase agreement. The cash flow impact of the transaction is $104 million which represents gross proceeds, net of cash included in the sale. The sale of scil resulted in a pre-tax gain of $73 million that was recognized during the three months ended June 30, 2020 and included in Other, net in our condensed consolidated statements of operation. Equity Method Investment On April 30, 2020, we completed the previously announced combination of our subsidiary, Spain Animal Health Solutions S.L.U. (“SAHS”), with Distrivet, S.A. to form a leading animal-health provider on the Iberian Peninsula. We contributed SAHS by means of a contribution in kind of all the shares of SAHS in exchange for the transfer of shares from shareholders of Distrivet, S.A. (“Distrivet Shareholders”). In addition, at closing, we made a payment of $11 million, and we are obligated to make an additional payment of $11 million on the one-year anniversary of the closing of the combination. As a result of these transactions, we now own 50.01% of the new company, called Distrivet, a Covetrus company (“Distrivet”). Based on Distrivet's governance structure, we do not have power over key financial and operating decisions that are made in the ordinary course of business. Accordingly, our investment in Distrivet is accounted for under the equity method and Distrivet is considered a related party. See Note 17 - Related Party Transactions. The Investment and Shareholders Agreement of Distrivet, S.A. (“Agreement”) executed on January 13, 2020, contains put and call options on the shares owned by the Distrivet Shareholders, representing up to 49.99%, that are exercisable at fair market value based on floor and ceiling prices tied to Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) multiples as specified in the Agreement. See Note 9 - Fair Value.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Disaggregation of Revenue The tables below present our revenue disaggregated by major product category and reportable segment. Three Months Ended June 30, 2020 Supply Chain Services Software Prescription Management Eliminations Total North America $ 495 $ 19 $ 110 $ (22) $ 602 Europe 342 2 — (2) 342 APAC & Emerging Markets 83 2 — — 85 Eliminations (3) — — — (3) Total Net sales $ 917 $ 23 $ 110 $ (24) $ 1,026 Three Months Ended June 30, 2019 Supply Chain Services Software Prescription Management Eliminations Total North America $ 472 $ 20 $ 67 $ (7) $ 552 Europe 370 3 — (3) 370 APAC & Emerging Markets 88 2 — — 90 Eliminations (3) — — — (3) Total Net sales $ 927 $ 25 $ 67 $ (10) $ 1,009 Six Months Ended June 30, 2020 Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 956 $ 40 $ 195 $ (39) $ 1,152 Europe 766 4 — (6) 764 APAC & Emerging Markets 176 4 — — 180 Eliminations (5) — — — (5) Total Net sales $ 1,893 $ 48 $ 195 $ (45) $ 2,091 Six Months Ended June 30, 2019 Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 915 $ 42 $ 100 $ (8) $ 1,049 Europe 733 5 — (7) 731 APAC & Emerging Markets 172 4 — — 176 Eliminations (6) — — — (6) Total Net sales $ 1,814 $ 51 $ 100 $ (15) $ 1,950 Contract Balances Contract balances represent amounts presented in the condensed consolidated balance sheets when we have either transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets, and contract liabilities. Accounts Receivable Accounts receivable are recognized at the amount invoiced and the carrying amount is reduced by an allowance for credit losses. Our estimation of current expected credit losses, with respect to receivables and recognition of allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. We do not consider there to be significant concentrations of credit risk with regard to trade receivables due to the short-term nature of our accounts, our large customer base, and strong historical experience collecting receivables. The allowance for credit losses is based on a number of factors which include reviewing delinquent accounts receivable, historical data, experience, customer types, creditworthiness, and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect collectability, and the allowance for credit losses is reviewed quarterly for any required adjustments. Accounts receivable are written-off when it is probable that all contractual payments due will not be collected. Contract Assets Contract assets include amounts related to any conditional right to consideration for work completed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to Accounts receivable when the right becomes unconditional. Current contract assets are included in Prepaid expenses and other and non-current contract assets are included in Investments and other within the condensed consolidated balance sheets. The contract assets primarily relate to the bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current and non-current contract asset balances as of June 30, 2020 and December 31, 2019 were not material. Contract Liabilities Contract liabilities are comprised of advance payments and deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Current contract liabilities are included in Other current liabilities and non-current contract liabilities are included in Other liabilities within the condensed consolidated balance sheets. The contract liabilities primarily relate to advance payments from customers and upfront payments for service arrangements provided over time. The current portion of contract liabilities of $29 million at June 30, 2020 and $37 million at December 31, 2019 were reported in Other current liabilities. Amounts related to non-current contract liabilities were not material. Performance Obligations Estimated future revenues expected to be generated from long-term contracts with unsatisfied performance obligations as of June 30, 2020 were not material.

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	Leases The lease for our compounding facility and office space in Arizona commenced on January 1, 2020, which increased our operating lease right-of-use assets and liabilities by $19 million. This facility has a lease term of 14 years. We also commenced or extended various other facility and equipment operating leases which individually were not material.

Other Intangibles, Net

Other Intangibles, Net	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangibles, Net	Other Intangibles, Net Other intangibles, net includes customer relationships, trademarks, patents, product development, and non-compete arrangements. The following table presents the balances within the condensed consolidated balance sheets as of: June 30, 2020 December 31, 2019 Gross definite-lived intangible assets $ 993 $ 1,001 Less: Accumulated amortization (421) (358) Other intangibles, net $ 572 $ 643 The following table presents our amortization expense: Three Months Ended June 30, Location 2020 2019 Cost of sales $ 1 $ 1 Selling, general and administrative 32 33 Total amortization expense $ 33 $ 34

Long-term Debt and Other Borrow

Long-term Debt and Other Borrowings, Net	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Long-term Debt and Other Borrowings, Net	Long-term Debt and Other Borrowings, Net As of June 30, 2020, our Long-term debt and other borrowings, net consisted of the following: Commencement Date Maturity Date June 30, December 31, 2019 Revolving line of credit February 2019 February 2024 $ — $ — Term loan payable; quarterly installments of $15 million began March 31, 2020 with balloon payment due at maturity February 2019 February 2024 1,140 1,200 Loan payable with balloon payment due at maturity February 2019 March 2023 5 6 Finance lease obligations 1 1 Total debt and other borrowings 1,146 1,207 Less: current maturities (31) (62) Total Long-term debt and other borrowings 1,115 1,145 Less: unamortized debt discount (20) (20) Total Long-term debt and other borrowings, net $ 1,095 $ 1,125 The amount available for borrowing under the revolving line of credit as of June 30, 2020 was $299 million, subject to covenant restrictions. In February 2020, our credit facility was amended primarily to delay the step down of our leverage covenant from 5.50x to 5.00x until June 30, 2021. On April 10, 2020, we used $45 million in proceeds from the sale of scil (see Note 3 - Divestiture and Equity Method Investment ) to prepay our remaining quarterly principal amortization term loan payments for 2020. Following this prepayment, the next quarterly principal amortization term loan payment of $15 million is due on March 31, 2021.

Derivatives and Financial Instr

Derivatives and Financial Instruments	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Financial Instruments	Derivatives and Financial Instruments We are exposed to the impact of changes in interest rates in the normal course of business. Our financial risk management program is designed to manage the exposure arising from this cash flow risk and uses derivative financial instruments to minimize this risk. We do not enter into derivative financial instruments for trading or speculative purposes. In 2019, we executed interest rate swap contracts with notional amounts aggregating $500 million that are designated as cash flow hedges to manage interest rate risk on our floating rate debt. These interest rate swap contracts effectively fix the borrowing rates on a portion of our floating rate debt discussed in Note 7 - Long-term Debt and Other Borrowings, Net . Our interest rate swap agreements exchange payment streams based on the notional principal amount. These agreements fix our future interest rates ranging from 1.63% to 1.70% plus the applicable margin as provided in our debt agreement on an amount of our debt principal equal to the then-outstanding swap notional amount. The base notional amount matures on July 31, 2021. On the interest rate swap inception dates, we designated the swaps as a hedge of the variability in cash flows we pay on our variable rate borrowings. The following table discloses the fair value and balance sheet location of our derivative instruments: Liability Derivatives Cash Flow Hedging Instruments Balance Sheet Location June 30, 2020 December 31, 2019 Interest rate swap contracts Other liabilities $ 8 $ 1 At inception of the hedging contract, we used statistical regression to assess the effectiveness of the interest rate hedges. The hedging contracts were deemed highly effective and are expected to be highly effective throughout the hedge period. Therefore, we perform a qualitative assessment of the hedge effectiveness at each subsequent quarterly reporting date. As of June 30, 2020, derivative gains and losses were reported as a component of Other comprehensive income (loss) and will subsequently be recorded in the condensed consolidated statements of operations when the hedged transaction is recognized in earnings. The effect of cash flow hedges on Other comprehensive income (loss) was as follows: Cash Flow Hedging Instruments Location Three Months Ended Six Months Ended Amounts recognized in Other comprehensive income (loss), net of tax Accumulated other comprehensive loss $ 1 $ (7) The net amount of deferred losses on cash flow hedges that are expected to be reclassified from Accumulated other comprehensive income (loss) into Interest expense within the next 12 months is $8 million.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value	Fair Value GAAP defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our condensed consolidated balance sheets, but the fair value is disclosed. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability • Level 3 - Unobservable inputs for the asset or liability There were no changes in valuation approaches or techniques during the three and six months ended June 30, 2020. See Note 9 - Fair Value in our Form 10-K for a description of our valuation techniques. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents our financial instruments measured at fair value on a recurring basis and indicates the level within the fair value hierarchy: Level June 30, 2020 December 31, 2019 Liabilities: Interest rate swap contracts 2 $ 8 $ 1 Distrivet put option 3 5 — Total liabilities $ 13 $ 1 Interest Rate Swap Contracts Our derivatives at June 30, 2020 consisted of five interest rate swap contracts which are over-the-counter and not traded through an exchange. See Note 8 - Derivatives and Financial Instruments . Distrivet Put Option The Distrivet put option fair value was derived from a Monte Carlo simulation methodology. The significant unobservable inputs utilized in this Level 3 fair value measurement includes the enterprise value of Distrivet, volatility, and cost of debt. We regularly evaluate each of the assumptions used in establishing this liability. Significant changes in assumptions could result in significantly lower or higher fair value measurements. See Note 3 - Divestiture and Equity Method Investment. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis primarily relate to Property and equipment, net, Operating lease right-of-use assets, net, Goodwill, and Other intangibles, net. We do not periodically adjust carrying value to fair value for these assets; rather, the carrying value of the asset is reduced to its fair value when we determine that impairment has occurred. We did not have any assets or liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2020 or the year ended December 31, 2019. Assets and Liabilities not Measured at Fair Value Financial Assets and Liabilities The carrying amounts reported on the condensed consolidated balance sheets for Cash and cash equivalents, Accounts receivable, net, Other receivables, Accounts payable, and accrued expenses approximate their fair value due to the short maturity of those instruments. Investments in Affiliates There are no quoted market prices available for investments in affiliates, however, we believe the carrying amounts are a reasonable estimate of fair value. Long-term Debt Our long-term debt is classified as a level 2 instrument. The carrying amount of the term loan approximates fair value given the underlying interest rate applied to such amounts outstanding and is currently reset to the prevailing monthly market rate.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are involved in various legal proceedings that arise in the ordinary course of business. Substantial judgment is required in predicting the outcome of these legal proceedings, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and can be reasonably estimated. No material accrued loss contingencies were recorded as of June 30, 2020. Securities Litigation Matter On September 30, 2019, the City of Hollywood (Florida) Police Officers' Retirement System filed a putative securities class action lawsuit in the United States District Court for the Eastern District of New York, purportedly on behalf of purchasers of Covetrus common stock from February 8, 2019 through August 12, 2019, against the Company, our Former Parent, our former Chief Executive Officer and President, and our former Chief Financial Officer (collectively, the “Defendants”). The complaint alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), by making allegedly false and misleading statements and omissions, primarily regarding the Company’s financial prospects and the integration costs relating to the business combination involving the Animal Health Business and Vets First Choice. The suit seeks unspecified damages, fees, interest, and costs. We intend to defend the matter vigorously and have filed a motion to dismiss the lawsuit. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from this action. Purchase Obligations We are party to an exclusive supply arrangement for certain products within the U.S. market. We amended this arrangement in February 2020 to extend the purchase obligations until 2025 which include unconditional purchase obligations totaling $44 million over this period. Our unconditional purchase obligations for 2020 is $8 million. During the six months ended June 30, 2020, we paid $4 million for products purchased under this exclusive arrangement, leaving a remaining commitment of $40 million. Our forecasted sales for products under this exclusive supply arrangement exceed our purchase obligations. In 2019, we engaged a third-party for services over a three-year period ending December 31, 2022. The fixed portion of the contract is capped at $14 million while the variable portion of the contract is capped at $39 million over the term of the engagement. We consider the contract to be of a “take-or-pay” nature due to the termination fees embedded in the contract: fixed termination fees of $12 million until mid-November 2020 and $14 million thereafter, plus any variable performance fees through termination. During 2019, we incurred $2 million in fixed fees. During the six months ended June 30, 2020, we incurred $7 million in variable fees and $2 million in fixed fees under this arrangement, leaving a remaining potential commitment of $42 million.

Redeemable Non-controlling Inte

Redeemable Non-controlling Interests	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Redeemable Non-controlling Interests	Redeemable Non-controlling Interests Some minority equity owners in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities. We initially record our Redeemable non-controlling interests at fair value on the date of acquisition and subsequently adjust to redemption value. The following table presents the components of change and balances of Redeemable non-controlling interests within the condensed consolidated balance sheets as follows: Six Months Ended June 30, 2020 Year Ended Balance at beginning of period $ 10 $ 92 Decrease due to redemptions — (74) Net income (loss) attributable to redeemable non-controlling interests 1 (3) Effect of foreign currency translation (gain) loss attributable to redeemable non-controlling interests (2) 1 Change to redemption value — (6) Balance at end of period $ 9 $ 10

Redeemable, Convertible Series

Redeemable, Convertible Series A Preferred Stock	6 Months Ended
	Jun. 30, 2020
Schedule of Investments [Abstract]
Redeemable, Convertible Series A Preferred Stock	Redeemable Series A Convertible Preferred Stock On May 19, 2020, we issued 250,000 shares of our 7.5% Series A Convertible Preferred Stock (the “Series A Preferred Stock”), with a par value of $0.01 per share, for an aggregate purchase price of $250 million, or $1,000 per share, pursuant to an Investment Agreement (the “Investment Agreement”) with CD&R VFC Holdings, L.P. (the “Purchaser”), an affiliate of Clayton, Dubilier & Rice, LLC, dated April 30, 2020. We received net proceeds of $244 million after issuance costs, a portion of which was used to pay down our revolver borrowings and the remainder of which will be used to provide additional short-term liquidity and support general corporate purposes. Our Series A Preferred Stock is a participating security for our calculation of earnings per share (see Note 15 - Earnings (Loss) Per Share) . Below is a summary of our Series A Preferred Stock characteristics, which are set forth in the Certificate of Designations: Voting and Other The holders of our Series A Preferred Stock vote together with the holders of common stock as a single class on an as-converted basis. In addition, the holders are entitled to vote as a separate class on certain matters and as required by law. On an as-converted basis, together with the Purchaser's existing common shares of Covetrus, the Purchaser owns approximately 25% of pro forma common shares outstanding. However, unless certain stockholder approval is obtained, the terms of the Series A Preferred Stock limit the Purchaser's voting interest to 19.99% of our then-outstanding voting interests. Under the terms of the Investment Agreement, the Purchaser has the right to appoint two designees to our board of directors. Dividends The holders participate in dividends on an as-converted basis when paid on common stock. Additionally, the holders are entitled to cumulative dividends, payable quarterly in arrears, at an annual rate of 7.5% of the stated value of $1,000 per share. Dividends may be paid in cash or accrue in accordance with the terms of the Certificate of Designations. For the three months ended June 30, 2020, our board of directors declared a pro rata quarterly dividend of $8.65 per share, or $2 million, that was paid on June 30, 2020. Accordingly, there were no cumulative dividends included in the accompanying condensed consolidated financial statements in connection with the outstanding shares of Series A Preferred Stock. Conversion Rights At the option of the holder, each share of the Series A Preferred Stock is convertible into common stock at any time as is determined by dividing the applicable conversion value by the applicable conversion price in effect at the time of conversion. At the option of the Company, we may require the conversion of all of the outstanding shares of Series A Preferred Stock into the relevant number of shares of our common stock if either (i) our consolidated EBITDA (as defined in the Certificate of Designations) exceeds $300 million for two consecutive 12-month periods and our consolidated net total leverage ratio (as defined in the Certificate of Designations) as of the last day of such two consecutive 12-month periods does not exceed 4:00:1:00, or (ii) the volume-weighted average price of our common stock exceeds the product of the mandatory conversion threshold, 200%, if within two years of the issuance date multiplied by the conversion price on each of at least twenty trading days (whether or not consecutive) in a period of thirty consecutive trading days. Currently, our conversion price as described under (ii) above is $22.20. However, unless certain stockholder approval is obtained, no share of Series A Preferred Stock is convertible into common stock if the conversion would result in the holder beneficially owning more than 19.99% of our then outstanding voting power. In determining the appropriate classification for the conversion features of the Series A Preferred Stock, we determined that the conversion features do not meet the definition of a derivative and that bifurcation was not required as the features are considered clearly and closely related to the host instruments. Redemption Provision At the option of the holder, upon certain change in control events, each share of the Series A Preferred Stock is redeemable in an amount in cash equal to 101% of the liquidation preference thereof plus all accrued and unpaid dividends. Should the holders not redeem, we have the option to redeem the shares, upon certain change of control events, in an amount in cash equal to the liquidation preference as of the date of redemption, plus all accrued but unpaid dividends as of the date of redemption, plus certain additional amounts if the applicable redemption date is prior to the fifth anniversary of the date of issuance of such Series A Preferred Stock. As of June 30, 2020, a change in control was not probable. We determined that bifurcation of the redemption features was not required as they do not require net settlement and therefore do not meet the definition of a derivative. Liquidation Rights In the event of any voluntary or involuntary liquidation, dissolution, or winding up of Covetrus, the holders of outstanding shares of Series A Preferred Stock are entitled to be paid out of the assets of Covetrus available for distribution to our shareholders before any payment to the holders of our common stock.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes certain gains and losses that are excluded from net income (loss) under GAAP as these amounts are recorded directly as an adjustment to total equity. The following table presents the changes in Accumulated other comprehensive loss, net of applicable taxes, by component: Derivative Loss Foreign Currency Translation Loss Total Balance at December 29, 2018 $ — $ (82) $ (82) Other comprehensive loss before reclassifications (1) (4) (5) Reclassified from Accumulated other comprehensive loss to earnings 1 — 1 Balance at December 31, 2019 — (86) (86) Other comprehensive loss before reclassifications (7) (16) (23) Reclassified from Accumulated other comprehensive loss to earnings — 2 2 Balance at June 30, 2020 $ (7) $ (100) $ (107) We recognized foreign currency translation losses as a component of comprehensive income (loss) due to changes in foreign exchange rates from the beginning of the period to the end of the period. The condensed consolidated financial statements are denominated in the U.S. dollar currency. Fluctuations in the value of foreign currencies as compared to the U.S. dollar may have a significant impact on Comprehensive income (loss). The tax effect on accumulated unrealized losses on derivative instruments was not material for the periods presented. See Note 8 - Derivatives and Financial Instruments .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense for the three months ended June 30, 2020 was $6 million on income before taxes and equity in earnings of affiliates of $59 million for a consolidated effective tax rate of 10.6%. The difference between our effective tax rate and the statutory tax rates for the jurisdictions in which we operate for the three months ended June 30, 2020, primarily related to valuation allowances due to uncertainty regarding the realization of future tax benefits from deferred tax assets and the sale of scil business units. Income tax expense for the six months ended June 30, 2020 was $4 million on income before taxes and equity in earnings of affiliates of $24 million for a consolidated effective tax rate of 17.7%. The difference between our effective tax rate and the federal statutory tax rates for the jurisdictions in which we operate for the six months ended June 30, 2020, primarily related to non-deductible share-based compensation expense, the sale of scil business units, valuation allowances due to uncertainty regarding the realization of future tax benefits from deferred tax assets, and the federal tax impact of international operations included as Global Intangible Low-Taxed Income (“GILTI”). Income tax expense for the three months ended June 30, 2019 was $5 million on a loss before taxes and equity in earnings of affiliates of $5 million for a consolidated effective tax rate of (94.8)%. The difference between our effective tax rate and the statutory tax rates for the jurisdictions in which we operate for the three months ended June 30, 2019, primarily related to the change from using the actual effective tax rate methodology for the three months ended March 31, 2019 to an annualized effective tax rate methodology for the three and six months ended June 30, 2019. Income tax expense for the six months ended June 30, 2019 was $1 million on a loss before taxes and equity in earnings of affiliates of $22 million for a consolidated effective tax rate of (2.4)%. The difference between our effective tax rate and the federal statutory tax rates for the jurisdictions in which we operate for the six months ended June 30, 2019, primarily related to the federal tax impact of international operations included as GILTI and non-deductible share-based compensation expense.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per common share (“EPS”) is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. In addition, the shares of common stock issuable pursuant to restricted stock awards, restricted stock units, performance stock units, and stock options outstanding under our 2019 Omnibus Incentive Compensation Plan, shares issuable under our Employee Stock Purchase Plan, and Series A Preferred Stock are included in the diluted EPS calculation to the extent they are dilutive. The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Covetrus $ 54 $ (10) $ 20 $ (23) Adjustment for: Dividends declared on Series A Preferred Stock (2) — (2) — Allocation of earnings to participating securities (6) — (1) — Income (loss) available to common shareholders $ 46 $ (10) $ 17 $ (23) Denominator: Basic Weighted-average common shares outstanding 112 112 112 103 Diluted Effect of dilutive shares 1 — 1 — Weighted-average common shares outstanding 113 112 113 103 Income (loss) per share attributable to Covetrus: Basic $ 0.40 $ (0.09) $ 0.15 $ (0.22) Diluted $ 0.40 $ (0.09) $ 0.15 $ (0.22) Potentially dilutive securities (a) 19 5 12 3 (a) Potentially dilutive securities attributable to outstanding convertible Series A Preferred Stock, stock options, restricted stock units, and restricted stock awards were excluded from the computation of diluted earnings per share because the securities would have had an antidilutive effect.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement, Disclosure [Abstract]
Share-based Payment Arrangement	Share-based Compensation Share-based Compensation Expense In connection with share-based payment awards, we recorded share-based compensation expense of $10 million for the three months ended June 30, 2020, $10 million for the three months ended June 30, 2019, $19 million for the six months ended June 30, 2020, and $25 million for the six months ended June 30, 2019 which is included in Selling, general and administrative within the condensed consolidated statements of operations. As of June 30, 2020, there was $72 million in unrecognized compensation expense related to nonvested share-based awards that is expected to be recognized over a weighted-average period of 2.0 years. Performance-based Grants Under our 2019 Omnibus Incentive Compensation Plan (the “Plan”), we grant restricted stock awards that are subject to performance conditions to certain participating employees. For the six months ended June 30, 2020, we granted 1,323,267 performance stock units (“PSUs”) under the Plan with a weighted-average fair value of $11.34. The performance stock units are subject to the specific performance conditions, vesting on a one-year performance cycle. Compensation expense for the PSUs for the three months ended June 30, 2020 was $1 million, which is included in share-based compensation expense noted above.

Related Party Disclosures

Related Party Disclosures	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Upon closing the transaction with Distrivet, S.A. on April 30, 2020 (see Note 3 - Divestiture and Equity Method Investment ), Distrivet, our equity method investee, became a related party. During the three months ended June 30, 2020, we provided management services and corporate branding to Distrivet under our agreement, and we provided goods to Distrivet. These services and product sales were not material during this period.

Segment Data

Segment Data	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Data	Segment Data The following tables reflect our segment and Corporate information and reconciles Adjusted EBITDA for reportable segments to consolidated Net income (loss) attributable to Covetrus: At and For the Three Months Ended June 30, 2020 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 602 $ 342 $ 85 $ — $ (3) $ 1,026 Adjusted EBITDA $ 55 $ 16 $ 5 $ (13) $ — $ 63 Total assets $ 3,066 $ 635 $ 132 $ 1,145 $ (1,452) $ 3,526 Reconciliation of net income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 54 Plus: Depreciation and amortization 41 Plus: Interest expense, net 13 Plus: Income tax expense 6 Earnings before interest, taxes, depreciation, and amortization 114 Plus: Share-based compensation 10 Plus: Strategic consulting 5 Plus: Separation programs and executive severance 1 Plus: Formation of Covetrus (a) 7 Plus: Capital structure 1 Less: Other income items, net (b) (75) Adjusted EBITDA $ 63 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. (b) Includes a $73 million gain on the divestiture of scil and a $1 million gain on the deconsolidation of SAHS. See Note 3 - Divestiture and Equity Method Investment. At and For the Three Months Ended June 30, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 552 $ 370 $ 90 $ — $ (3) $ 1,009 Adjusted EBITDA $ 43 $ 19 $ 4 $ (13) $ — $ 53 Total assets $ 3,265 $ 797 $ 191 $ 872 $ (935) $ 4,190 Reconciliation of net loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (10) Plus: Depreciation and amortization 41 Plus: Interest expense, net 14 Plus: Income tax expense 5 Earnings before interest, taxes, depreciation, and amortization 50 Plus: Share-based compensation 10 Plus: Formation of Covetrus (a) 6 Plus: IT infrastructure 2 Less: Other income items, net (15) Adjusted EBITDA $ 53 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. For the Six Months Ended June 30, 2020 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,152 $ 764 $ 180 $ — $ (5) $ 2,091 Adjusted EBITDA $ 96 $ 34 $ 12 $ (31) $ — $ 111 Reconciliation of net income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 20 Plus: Depreciation and amortization 82 Plus: Interest expense, net 27 Plus: Income tax expense 4 Earnings before interest, taxes, depreciation, and amortization 133 Plus: Share-based compensation 19 Plus: Strategic consulting 9 Plus: Transaction costs (a) 6 Plus: Separation programs and executive severance 2 Plus: IT infrastructure 2 Plus: Formation of Covetrus (b) 14 Plus: Capital structure 1 Less: Other income items, net (c) (75) Adjusted EBITDA $ 111 (a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures. (b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. (c) Includes a $73 million gain on the divestiture of scil and a $1 million gain on the deconsolidation of SAHS. See Note 3 - Divestiture and Equity Method Investment. For the Six Months Ended June 30, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,049 $ 731 $ 176 $ — $ (6) $ 1,950 Adjusted EBITDA $ 78 $ 35 $ 8 $ (16) $ — $ 105 Reconciliation of net loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (23) Plus: Depreciation and amortization 71 Plus: Interest expense, net 25 Plus: Income tax expense 1 Earnings before interest, taxes, depreciation, and amortization 74 Plus: Share-based compensation 25 Plus: Formation of Covetrus (a) 14 Plus: Carve-out operating expenses 5 Plus: IT infrastructure 2 Less: Other income items, net (15) Adjusted EBITDA $ 105 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. See Note 4 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.

Business Overview and Signifi_2

Business Overview and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Business	Business Covetrus, Inc. (“Covetrus,” “Company,” “we,” “our,” “us,” or “ourselves”) is a global animal-health technology and services company dedicated to supporting the companion, equine, and large-animal veterinary markets. On February 7, 2019, Covetrus became an independent company through the consummation of the spin-off by Henry Schein (“Former Parent”) of its animal-health business (“Animal Health Business”) and the completion of its acquisition of Direct Vet Marketing, Inc. (d/b/a Vets First Choice) (“Vets First Choice”). On February 8, 2019, Covetrus began trading on the Nasdaq Stock Market. Accordingly, results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”) reflect the operations of the Animal Health Business from January 1, 2019 to June 30, 2019 and Vets First Choice for the period from February 8, 2019 to June 30, 2019.
Basis of Presentation	Basis of Presentation and Principles of Consolidation The accompanying balance sheet as of December 31, 2019, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements as of and for the six months ended June 30, 2020, have been prepared in accordance with applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Pursuant to those rules and regulations, we omitted certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP. In our opinion, the accompanying condensed consolidated financial statements reflect all recurring adjustments and transactions necessary for a fair statement of our financial position, results of operations, and cash flows for the interim periods presented. Such operating results are not necessarily indicative of annual or future results. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K
Principles of Consolidation	The accompanying unaudited condensed consolidated financial statements include the operations of the Company, as well as those of our wholly-owned and majority-owned subsidiaries from their respective dates of inception or acquisition. All significant intercompany transactions and balances were eliminated in consolidation. Investments in unconsolidated affiliates, which are 20% to 50.01% owned, or investments of less than 20% in which we could influence the operating or financial decisions, are accounted for under the equity method. Certain prior period amounts were reclassified or rounded to conform to the presentation of the current period.
Redeemable Convertible Preferred Stock	Redeemable Convertible Preferred Stock We classify our redeemable convertible preferred stock as mezzanine equity on our condensed consolidated balance sheets because it is redeemable at the option of holders upon a change of control as defined in the Certificate of Designation, Preferences and Rights for the Series A Preferred Stock (the “Certificate of Designations”), which is considered an event outside of our control. We recorded redeemable convertible preferred stock at fair value upon issuance, net of issuance costs. Our redeemable convertible preferred stock is not currently redeemable, nor is it probable of redemption. If and when a change of control becomes probable, we will accrete the redeemable convertible preferred stock to redemption value.
Accounting Pronouncements	Accounting Pronouncements Adopted • As of January 1, 2019, we adopted Accounting Standards Codification Topic 326, Credit Losses (“Topic 326”) which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including accounts receivable. Topic 326 is effective for interim and annual reporting periods beginning after December 15, 2019 and is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to Retained earnings (Accumulated deficit) as of the beginning of the first reporting period in which the guidance of Topic 326 is effective. The adoption of Topic 326 did not have a material impact on the results of our condensed consolidated financial statements. To be Adopted • ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” removes specific technical exceptions to general principles found in Topic 740, items that often produce information that investors have a hard time understanding and simplifies the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are evaluating the anticipated impact of this standard on our condensed consolidated financial statements as well as timing of adoption. • ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”). The standard is currently effective and upon adoption may be applied prospectively to contract modifications made on or before December 31, 2022. We are evaluating the impact of the LIBOR transition and this optional relief guidance on our condensed consolidated financial statements.
Contract Balances	Contract Balances Contract balances represent amounts presented in the condensed consolidated balance sheets when we have either transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets, and contract liabilities.
Fair Value	GAAP defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our condensed consolidated balance sheets, but the fair value is disclosed. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability • Level 3 - Unobservable inputs for the asset or liability

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The tables below present our revenue disaggregated by major product category and reportable segment. Three Months Ended June 30, 2020 Supply Chain Services Software Prescription Management Eliminations Total North America $ 495 $ 19 $ 110 $ (22) $ 602 Europe 342 2 — (2) 342 APAC & Emerging Markets 83 2 — — 85 Eliminations (3) — — — (3) Total Net sales $ 917 $ 23 $ 110 $ (24) $ 1,026 Three Months Ended June 30, 2019 Supply Chain Services Software Prescription Management Eliminations Total North America $ 472 $ 20 $ 67 $ (7) $ 552 Europe 370 3 — (3) 370 APAC & Emerging Markets 88 2 — — 90 Eliminations (3) — — — (3) Total Net sales $ 927 $ 25 $ 67 $ (10) $ 1,009 Six Months Ended June 30, 2020 Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 956 $ 40 $ 195 $ (39) $ 1,152 Europe 766 4 — (6) 764 APAC & Emerging Markets 176 4 — — 180 Eliminations (5) — — — (5) Total Net sales $ 1,893 $ 48 $ 195 $ (45) $ 2,091 Six Months Ended June 30, 2019 Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 915 $ 42 $ 100 $ (8) $ 1,049 Europe 733 5 — (7) 731 APAC & Emerging Markets 172 4 — — 176 Eliminations (6) — — — (6) Total Net sales $ 1,814 $ 51 $ 100 $ (15) $ 1,950

Other Intangibles, Net (Tables)

Other Intangibles, Net (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The following table presents the balances within the condensed consolidated balance sheets as of: June 30, 2020 December 31, 2019 Gross definite-lived intangible assets $ 993 $ 1,001 Less: Accumulated amortization (421) (358) Other intangibles, net $ 572 $ 643
Finite-lived Intangible Assets Amortization Expense	The following table presents our amortization expense: Three Months Ended June 30, Location 2020 2019 Cost of sales $ 1 $ 1 Selling, general and administrative 32 33 Total amortization expense $ 33 $ 34

Long-term Debt and Other Borr_2

Long-term Debt and Other Borrowings, Net (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Debt	As of June 30, 2020, our Long-term debt and other borrowings, net consisted of the following: Commencement Date Maturity Date June 30, December 31, 2019 Revolving line of credit February 2019 February 2024 $ — $ — Term loan payable; quarterly installments of $15 million began March 31, 2020 with balloon payment due at maturity February 2019 February 2024 1,140 1,200 Loan payable with balloon payment due at maturity February 2019 March 2023 5 6 Finance lease obligations 1 1 Total debt and other borrowings 1,146 1,207 Less: current maturities (31) (62) Total Long-term debt and other borrowings 1,115 1,145 Less: unamortized debt discount (20) (20) Total Long-term debt and other borrowings, net $ 1,095 $ 1,125

Derivatives and Financial Ins_2

Derivatives and Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following table discloses the fair value and balance sheet location of our derivative instruments: Liability Derivatives Cash Flow Hedging Instruments Balance Sheet Location June 30, 2020 December 31, 2019 Interest rate swap contracts Other liabilities $ 8 $ 1
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location	The effect of cash flow hedges on Other comprehensive income (loss) was as follows: Cash Flow Hedging Instruments Location Three Months Ended Six Months Ended Amounts recognized in Other comprehensive income (loss), net of tax Accumulated other comprehensive loss $ 1 $ (7)

Fair Value Fair Value (Tables)

Fair Value Fair Value (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule Financial Instruments Measured at Fair Value on a Recurring Basis	The following table presents our financial instruments measured at fair value on a recurring basis and indicates the level within the fair value hierarchy: Level June 30, 2020 December 31, 2019 Liabilities: Interest rate swap contracts 2 $ 8 $ 1 Distrivet put option 3 5 — Total liabilities $ 13 $ 1

Redeemable Non-controlling In_2

Redeemable Non-controlling Interests (Tables)	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Redeemable Non-controlling Interests	The following table presents the components of change and balances of Redeemable non-controlling interests within the condensed consolidated balance sheets as follows: Six Months Ended June 30, 2020 Year Ended Balance at beginning of period $ 10 $ 92 Decrease due to redemptions — (74) Net income (loss) attributable to redeemable non-controlling interests 1 (3) Effect of foreign currency translation (gain) loss attributable to redeemable non-controlling interests (2) 1 Change to redemption value — (6) Balance at end of period $ 9 $ 10

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following table presents the changes in Accumulated other comprehensive loss, net of applicable taxes, by component: Derivative Loss Foreign Currency Translation Loss Total Balance at December 29, 2018 $ — $ (82) $ (82) Other comprehensive loss before reclassifications (1) (4) (5) Reclassified from Accumulated other comprehensive loss to earnings 1 — 1 Balance at December 31, 2019 — (86) (86) Other comprehensive loss before reclassifications (7) (16) (23) Reclassified from Accumulated other comprehensive loss to earnings — 2 2 Balance at June 30, 2020 $ (7) $ (100) $ (107)

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Reconciliation of Basic Shares to Diluted Shares	The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Covetrus $ 54 $ (10) $ 20 $ (23) Adjustment for: Dividends declared on Series A Preferred Stock (2) — (2) — Allocation of earnings to participating securities (6) — (1) — Income (loss) available to common shareholders $ 46 $ (10) $ 17 $ (23) Denominator: Basic Weighted-average common shares outstanding 112 112 112 103 Diluted Effect of dilutive shares 1 — 1 — Weighted-average common shares outstanding 113 112 113 103 Income (loss) per share attributable to Covetrus: Basic $ 0.40 $ (0.09) $ 0.15 $ (0.22) Diluted $ 0.40 $ (0.09) $ 0.15 $ (0.22) Potentially dilutive securities (a) 19 5 12 3 (a) Potentially dilutive securities attributable to outstanding convertible Series A Preferred Stock, stock options, restricted stock units, and restricted stock awards were excluded from the computation of diluted earnings per share because the securities would have had an antidilutive effect.

Segment Data (Tables)

Segment Data (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables reflect our segment and Corporate information and reconciles Adjusted EBITDA for reportable segments to consolidated Net income (loss) attributable to Covetrus: At and For the Three Months Ended June 30, 2020 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 602 $ 342 $ 85 $ — $ (3) $ 1,026 Adjusted EBITDA $ 55 $ 16 $ 5 $ (13) $ — $ 63 Total assets $ 3,066 $ 635 $ 132 $ 1,145 $ (1,452) $ 3,526 Reconciliation of net income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 54 Plus: Depreciation and amortization 41 Plus: Interest expense, net 13 Plus: Income tax expense 6 Earnings before interest, taxes, depreciation, and amortization 114 Plus: Share-based compensation 10 Plus: Strategic consulting 5 Plus: Separation programs and executive severance 1 Plus: Formation of Covetrus (a) 7 Plus: Capital structure 1 Less: Other income items, net (b) (75) Adjusted EBITDA $ 63 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. (b) Includes a $73 million gain on the divestiture of scil and a $1 million gain on the deconsolidation of SAHS. See Note 3 - Divestiture and Equity Method Investment. At and For the Three Months Ended June 30, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 552 $ 370 $ 90 $ — $ (3) $ 1,009 Adjusted EBITDA $ 43 $ 19 $ 4 $ (13) $ — $ 53 Total assets $ 3,265 $ 797 $ 191 $ 872 $ (935) $ 4,190 Reconciliation of net loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (10) Plus: Depreciation and amortization 41 Plus: Interest expense, net 14 Plus: Income tax expense 5 Earnings before interest, taxes, depreciation, and amortization 50 Plus: Share-based compensation 10 Plus: Formation of Covetrus (a) 6 Plus: IT infrastructure 2 Less: Other income items, net (15) Adjusted EBITDA $ 53 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. For the Six Months Ended June 30, 2020 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,152 $ 764 $ 180 $ — $ (5) $ 2,091 Adjusted EBITDA $ 96 $ 34 $ 12 $ (31) $ — $ 111 Reconciliation of net income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 20 Plus: Depreciation and amortization 82 Plus: Interest expense, net 27 Plus: Income tax expense 4 Earnings before interest, taxes, depreciation, and amortization 133 Plus: Share-based compensation 19 Plus: Strategic consulting 9 Plus: Transaction costs (a) 6 Plus: Separation programs and executive severance 2 Plus: IT infrastructure 2 Plus: Formation of Covetrus (b) 14 Plus: Capital structure 1 Less: Other income items, net (c) (75) Adjusted EBITDA $ 111 (a) Includes legal, accounting, tax, and other professional fees incurred in connection with acquisitions and divestitures. (b) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. (c) Includes a $73 million gain on the divestiture of scil and a $1 million gain on the deconsolidation of SAHS. See Note 3 - Divestiture and Equity Method Investment. For the Six Months Ended June 30, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,049 $ 731 $ 176 $ — $ (6) $ 1,950 Adjusted EBITDA $ 78 $ 35 $ 8 $ (16) $ — $ 105 Reconciliation of net loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (23) Plus: Depreciation and amortization 71 Plus: Interest expense, net 25 Plus: Income tax expense 1 Earnings before interest, taxes, depreciation, and amortization 74 Plus: Share-based compensation 25 Plus: Formation of Covetrus (a) 14 Plus: Carve-out operating expenses 5 Plus: IT infrastructure 2 Less: Other income items, net (15) Adjusted EBITDA $ 105 (a) Includes professional and consulting fees, duplicative costs associated with transition service agreements, and other costs incurred in connection with the separation from Former Parent and establishing Covetrus as an independent public company. See Note 4 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.

Divestiture and Equity Method_2

Divestiture and Equity Method Investment (Details) - USD ($) $ in Millions	Apr. 30, 2021	Apr. 30, 2020	Jun. 30, 2020	Apr. 01, 2020	Jan. 13, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Building held-for-sale			$ 73
Put and Call Options excercisable, percent					49.99%
Animal Care Business | Disposal Group, Held-for-sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price				$ 110
Net of dealer related fees and other transaction items				$ 104
Distrivet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments to acquire businesses, gross		$ 11
Ownership interest		50.01%
Forecast | Subsequent Event | Distrivet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments to acquire businesses, gross	$ 11
Investments and Other | Distrivet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity method investments			45
Other, Net | Distrivet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Realized gain (loss) on disposal			1
Equity method investment, fair value disclosure			$ 47

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 1,026	$ 1,009	$ 2,091	$ 1,950
North America
Disaggregation of Revenue [Line Items]
Net sales	602	552	1,152	1,049
Europe
Disaggregation of Revenue [Line Items]
Net sales	342	370	764	731
APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	85	90	180	176
Operating Segments | North America
Disaggregation of Revenue [Line Items]
Net sales	602	552	1,152	1,049
Operating Segments | Europe
Disaggregation of Revenue [Line Items]
Net sales	342	370	764	731
Operating Segments | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	85	90	180	176
Operating Segments | Supply Chain Services
Disaggregation of Revenue [Line Items]
Net sales	917	927	1,893	1,814
Operating Segments | Supply Chain Services | North America
Disaggregation of Revenue [Line Items]
Net sales	495	472	956	915
Operating Segments | Supply Chain Services | Europe
Disaggregation of Revenue [Line Items]
Net sales	342	370	766	733
Operating Segments | Supply Chain Services | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	83	88	176	172
Operating Segments | Software Solutions
Disaggregation of Revenue [Line Items]
Net sales	23	25	48	51
Operating Segments | Software Solutions | North America
Disaggregation of Revenue [Line Items]
Net sales	19	20	40	42
Operating Segments | Software Solutions | Europe
Disaggregation of Revenue [Line Items]
Net sales	2	3	4	5
Operating Segments | Software Solutions | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	2	2	4	4
Operating Segments | Prescription Management
Disaggregation of Revenue [Line Items]
Net sales	110	67	195	100
Operating Segments | Prescription Management | North America
Disaggregation of Revenue [Line Items]
Net sales	110	67	195	100
Operating Segments | Prescription Management | Europe
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Operating Segments | Prescription Management | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Net sales	(24)	(10)	(45)	(15)
Eliminations | North America
Disaggregation of Revenue [Line Items]
Net sales	(22)	(7)	(39)	(8)
Eliminations | Europe
Disaggregation of Revenue [Line Items]
Net sales	(2)	(3)	(6)	(7)
Eliminations | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Net sales	(3)	(3)	(5)	(6)
Eliminations | Supply Chain Services
Disaggregation of Revenue [Line Items]
Net sales	(3)	(3)	(5)	(6)
Eliminations | Software Solutions
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Eliminations | Prescription Management
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Current contract liabilities	$ 29	$ 37

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 57	$ 71
Office space | Arizona
Lessee, Lease, Description [Line Items]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 19
Term of contract	14 years

Other Intangibles, Net - Finite

Other Intangibles, Net - Finite Lived Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Gross definite-lived intangible assets	$ 993	$ 1,001
Less: Accumulated amortization	(421)	(358)
Other intangibles, net	$ 572	$ 643

Other Intangibles, Net - Amorti

Other Intangibles, Net - Amortization of Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 33	$ 34
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1	1
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 32	$ 33

Long-term Debt and Other Borr_3

Long-term Debt and Other Borrowings, Net - Schedule of Debt (Details) - USD ($) $ in Millions	Apr. 10, 2020	Mar. 31, 2021	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Repayments of debt	$ 45
Total debt and other borrowings			$ 1,146	$ 1,207
Less: current maturities			(31)	(62)
Total Long-term debt and other borrowings			1,115	1,145
Less: unamortized debt discount			(20)	(20)
Total Long-term debt and other borrowings			1,095	1,125
Forecast
Debt Instrument [Line Items]
Repayments of debt		$ 15
Finance lease obligations
Debt Instrument [Line Items]
Finance lease obligations			1	1
Notes Payable to Banks | Term loan payable; quarterly installments of $15 million began March 31, 2020 with balloon payment due at maturity
Debt Instrument [Line Items]
Long-term debt			1,140	1,200
Quarterly installment payment, amount			15
Notes Payable to Banks | Loan payable with balloon payment due at maturity
Debt Instrument [Line Items]
Long-term debt			5	6
Revolving Facility | Credit Agreement
Debt Instrument [Line Items]
Long-term debt			$ 0	$ 0

Long-term Debt and Other Borr_4

Long-term Debt and Other Borrowings, Net - Narrative (Details) $ in Millions	Apr. 10, 2020USD ($)	Mar. 31, 2021USD ($)	Jun. 30, 2020USD ($)	Feb. 29, 2020
Line of Credit Facility [Line Items]
Repayments of debt	$ 45
Forecast
Line of Credit Facility [Line Items]
Repayments of debt		$ 15
Notes Payable to Banks | Term loan payable; quarterly installments of $15 million began March 31, 2020 with balloon payment due at maturity
Line of Credit Facility [Line Items]
Quarterly installment payment, amount			$ 15
Credit Agreement | Syndicated Credit Agreement 2019
Line of Credit Facility [Line Items]
Leverage ratio			5	5.50
Revolving Facility | Credit Agreement
Line of Credit Facility [Line Items]
Remaining borrowing capacity			$ 299

Derivatives and Financial Ins_3

Derivatives and Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Derivative [Line Items]
Net amount of deferred losses on cash flow hedges that are expected to be reclassified from Accumulated other comprehensive income (loss) into Interest expense within the next 12 months	$ 8
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap contracts
Derivative [Line Items]
Notional amount		$ 500
Minimum | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap contracts
Derivative [Line Items]
Forward interest rate	1.63%
Maximum | Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap contracts
Derivative [Line Items]
Forward interest rate	1.70%

Derivatives and Financial Ins_4

Derivatives and Financial Instruments - Balance Sheet Location (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Recurring | Cash Flow Hedging | Interest rate swap contracts | Other Noncurrent Liabilities
Derivative [Line Items]
Interest rate swap contracts	$ 8	$ 1

Derivatives and Financial Ins_5

Derivatives and Financial Instruments - Income Statement Location (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Designated as Hedging Instrument | Cash Flow Hedging | Interest expense | Interest rate swap contracts
Derivative [Line Items]
Amounts recognized in Other comprehensive income (loss), net of tax	$ 1	$ (7)

Fair Value - Narrative and Sche

Fair Value - Narrative and Schedule Financial Instruments Measured at Fair Value on a Recurring Basis (Details) $ in Millions	Jun. 30, 2020USD ($)swap	Dec. 31, 2019USD ($)
Fair Value Disclosures [Abstract]
Number of interest rate swap contracts | swap	5
Fair Value, Recurring | Level 2
Liabilities:
Interest rate swap contracts	$ 13	$ 1
Interest rate swap contracts | Fair Value, Recurring | Level 2
Liabilities:
Interest rate swap contracts	8	1
Put Option | Fair Value, Recurring | Level 2
Liabilities:
Interest rate swap contracts	$ 5	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2020	Feb. 29, 2020
Long-term Purchase Commitment [Line Items]
Unrecorded unconditional purchase obligation	$ 42			$ 44
Purchases in the period	4
Remaining commitment	40
Purchase obligation, fixed fee cap		$ 14
Purchase obligation, variable fee cap		39
Future contingent termination fees, period two		12
Future contingent termination fees, period three		14
Purchase Obligation, Fixed Fees Incurred	2	$ 2
Purchase Obligation, Variable Fees Incurred	$ 7
Unconditional purchase obligation, term	3 years
Forecast
Long-term Purchase Commitment [Line Items]
Unconditional purchase obligation for 2020			$ 8

Redeemable Non-controlling In_3

Redeemable Non-controlling Interests - Summary of Redeemable Non-controlling Interests (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance at beginning of period	$ 10	$ 92
Decrease due to redemptions	0	(74)
Net income (loss) attributable to redeemable non-controlling interests	1	(3)
Effect of foreign currency translation (gain) loss attributable to redeemable non-controlling interests	(2)	1
Change to redemption value	0	(6)
Balance at end of period	$ 9	$ 10

Redeemable, Convertible Serie_2

Redeemable, Convertible Series A Preferred Stock (Details)	May 19, 2020USD ($)$ / sharesshares	Apr. 30, 2020USD ($)	Jun. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)consecutiveTradingDaysnumberOfTradingDaysnumberOfAnnualPeriodsDesignees$ / sharesshares	Jun. 30, 2019USD ($)	Dec. 31, 2019$ / sharesshares
Schedule of Investments [Line Items]
Preferred stock shares issued (in shares) | shares			250,000		250,000		250,000
Preferred stock par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01
Dividends declared (in dollars per share)			$ 8.65
Dividends | $			$ 2,000,000	$ 21,000,000		$ 1,174,000,000
Owner threshold for stockholder approval			19.99%		19.99%
Redemption provision of liquidation preference			101.00%		101.00%
Number of designees to board of directors | Designees					2
CD&R VFC Holdings, L.P.
Schedule of Investments [Line Items]
Voting interest		19.99%
Series A Preferred Stock
Schedule of Investments [Line Items]
Consolidated EBITDA threshold, amount | $					$ 300,000,000
Consolidated EBITDA threshold exceeded, number of consecutive annual periods | numberOfAnnualPeriods					2
EBITDA threshold exceeded, period					12 months
Mandatory conversion threshold, percent			200.00%		200.00%
Volume-weighted average price, mandatory conversion threshold, measurement period					2 years
Conversion ratio					4
Threshold trading days | numberOfTradingDays					20
Threshold consecutive trading days | consecutiveTradingDays					30
Stock price trigger					$ 22.20
Private Placement | Series A Preferred Stock
Schedule of Investments [Line Items]
Net proceeds from private placement | $		$ 244,000,000
Investment Agreement | Private Placement | Series A Preferred Stock | CD&R VFC Holdings, L.P.
Schedule of Investments [Line Items]
Preferred stock shares issued (in shares) | shares	250,000
Preferred stock, dividend rate, percentage	7.50%
Preferred stock par value (in dollars per share)	$ 0.01
Proceeds from issuance of private placement | $	$ 250,000,000
Proceeds from issuance of private placement, per share	$ 1,000
Percentage of ownership after transaction		25.00%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,256	$ 1,494
Other comprehensive loss before reclassifications	(23)	(5)
Reclassified from Accumulated other comprehensive loss to earnings	2	1
Ending balance	1,276	1,256
Derivative Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	0
Other comprehensive loss before reclassifications	(7)	(1)
Reclassified from Accumulated other comprehensive loss to earnings	0	1
Ending balance	(7)	0
Foreign Currency Translation Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(86)	(82)
Other comprehensive loss before reclassifications	(16)	(4)
Reclassified from Accumulated other comprehensive loss to earnings	2	0
Ending balance	$ (100)	$ (86)

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 6	$ 5	$ 4	$ 1
Income (loss) before taxes and equity in earnings of affiliates	$ 59	$ (5)	$ 24	$ (22)
Effective tax rate	10.60%	(94.80%)	17.70%	(2.40%)

Earnings (Loss) Per Share - Rec

Earnings (Loss) Per Share - Reconciliation of Basic Shares to Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net income (loss) attributable to Covetrus	[1]	$ 54	$ (10)	$ 20	$ (23)
Preferred Stock Dividends and Other Adjustments [Abstract]
Dividends declared on Series A Preferred Stock		(2)	0	(2)	0
Allocation of earnings to participating securities		(6)	0	(1)	0
Income (loss) available to common shareholders		$ 46	$ (10)	$ 17	$ (23)
Basic shares (in shares)		112	112	112	103
Effect of dilutive shares (in shares)		1	0	1	0
Diluted shares (in shares)		113	112	113	103
Basic (in usd per share)		$ 0.40	$ (0.09)	$ 0.15	$ (0.22)
Diluted (in usd per share)		$ 0.40	$ (0.09)	$ 0.15	$ (0.22)
Potential dilutive securities		19	5	12	3
[1]	(a) Net income earned from January 1, 2019 through February 7, 2019 is attributed to the Former Parent as it was the sole shareholder prior to February 7, 2019.

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 10	$ 10	$ 19	$ 25
Cost not yet recognized, amount	72		$ 72
Cost not yet recognized, period for recognition			2 years
Performance-based Grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 1
Stock granted (in shares)			1,323,267
Weighted average grant date fair value (in usd per share)			$ 11.34
Vesting period			1 year

Segment Data - Operating Result

Segment Data - Operating Results by Segment (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net sales		$ 1,026	$ 1,009	$ 2,091	$ 1,950
Adjusted EBITDA		63	53	111	105
Total assets		3,526	4,190	3,526	4,190	$ 3,361
Net income (loss) attributable to Covetrus	[1]	54	(10)	20	(23)
Plus: Depreciation and amortization		41	41	82	71
Plus: Interest expense, net		13	14	27	25
Plus: Income tax expense		6	5	4	1
Earnings before interest, taxes, depreciation, and amortization		114	50	133	74
Plus: Share-based compensation		10	10	19	25
Plus: Strategic consulting		5		9
Plus: Transaction costs				6
Plus: Separation programs and executive severance		1		2
Plus: IT infrastructure			2	2	2
Plus: Formation of Covetrus		7	6	14	14
Plus: Capital structure		1		1	5
Other Operating Income (Expense), Net		(75)	(15)	(75)	(15)
Adjusted EBITDA		63	53	111	105
Corporate
Segment Reporting Information [Line Items]
Net sales		0	0	0	0
Adjusted EBITDA		(13)	(13)	(31)	(16)
Total assets		1,145	872	1,145	872
Adjusted EBITDA		(13)	(13)	(31)	(16)
Eliminations
Segment Reporting Information [Line Items]
Net sales		(3)	(3)	(5)	(6)
Adjusted EBITDA		0	0	0	0
Total assets		(1,452)	(935)	(1,452)	(935)
Adjusted EBITDA		0	0	0	0
North America
Segment Reporting Information [Line Items]
Net sales		602	552	1,152	1,049
North America | Operating Segments
Segment Reporting Information [Line Items]
Net sales		602	552	1,152	1,049
Adjusted EBITDA		55	43	96	78
Total assets		3,066	3,265	3,066	3,265
Adjusted EBITDA		55	43	96	78
Europe
Segment Reporting Information [Line Items]
Net sales		342	370	764	731
Europe | Operating Segments
Segment Reporting Information [Line Items]
Net sales		342	370	764	731
Adjusted EBITDA		16	19	34	35
Total assets		635	797	635	797
Adjusted EBITDA		16	19	34	35
APAC & Emerging Markets
Segment Reporting Information [Line Items]
Net sales		85	90	180	176
APAC & Emerging Markets | Operating Segments
Segment Reporting Information [Line Items]
Net sales		85	90	180	176
Adjusted EBITDA		5	4	12	8
Total assets		132	191	132	191
Adjusted EBITDA		$ 5	$ 4	$ 12	$ 8
[1]	(a) Net income earned from January 1, 2019 through February 7, 2019 is attributed to the Former Parent as it was the sole shareholder prior to February 7, 2019.