Zoetis Inc
For the period ended Sep 30, 2024. Filed Nov 4, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 4, 2024
ZTS$79.40-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001555280-24-000299
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-04.
0001555280-24-000332
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 245 previous paragraphs and 252 current paragraphs.
164 unchanged; 63 reworded; 20 added; 13 removed; 5 previous and 5 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
•price growth of approximately 6%;
Current report
•higher freight costs.
Current report
fully offset by:
Current report
•increased technology project investments,
Current report
•favorable foreign exchange;
Current report
•lower contract labor costs.
Current report
•favorable foreign exchange;
Current report
•higher depreciation expense.
Current report
•higher other operating costs; and
Current report
•higher depreciation expense.
Current report
27 | termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. Restructuring charges and certain acquisition and divestiture-related costs in the nine months ended September 30, 2023 primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, as well as costs related to recent acquisitions.
Current report
U.S. segment revenue increased by $172 million, or 15%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, reflecting an increase of $160 million in companion animal products and $12 million in livestock products.
Current report
Other unallocated expenses decreased by $2 million, or 3%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, primarily due to higher manufacturing costs and freight charges, partially offset by lower scrap charges and favorable foreign exchange.
Current report
The lower effective tax rate for the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, was primarily attributable to a higher benefit in the U.S. related to foreign-derived intangible income and a lower net discrete tax expenses, partially offset by a less favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs). Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible and non-taxable items.
Current report
For the three and nine months ended September 30, 2023, primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives.
Current report
businesses.
Current report
Inventories decreased primarily due to a reclassification of certain assets to Assets held for saleand higher sales than anticipated for certain products, partially offset by the build-up of certain products for increased demand.
Current report
Property, plant and equipment increased primarily as a result of capital spending, partially offset by depreciation expense and a reclassification of certain assets to Assets held for sale.
Current report
Accrued expenses increased primarily due to employee termination costs related to organizational structure refinements and the timing of payments for other expenses.
Current report
Other current liabilities increased primarily due to an increase in deferred revenue.
Removed paragraphs (13)
Previous report
•price growth of approximately 8%;
Previous report
•lower freight costs.
Previous report
•unfavorable foreign exchange,
Previous report
•favorable foreign exchange; and
Previous report
•higher selling and distribution costs;
Previous report
•higher logistics and freight costs;
Previous report
•higher other operating costs.
Previous report
•higher other operating costs.
Previous report
26 | costs in the six months ended June 30, 2023 primarily consisted of employee termination costs related to organizational structure refinements and costs related to the acquisition of Jurox.
Previous report
U.S. segment revenue increased by $143 million, or 12%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023, reflecting an increase of $121 million in companion animal products and $22 million in livestock products.
Previous report
For the three and six months ended June 30, 2023, primarily consisted of employee termination costs related to organizational structure refinements.
Previous report
Other current assets increased primarily due to the jurisdictional netting of income taxes receivable and income taxes payable, the mark-to-market adjustment of derivative instruments, the recognition of the deferral of a prepaid tax benefit in connection with a prepayment from a related foreign entity in Belgium, partially offset by a decrease in collateral posted related to derivative contracts.
Previous report
Other current liabilities decreased primarily due to the mark-to-market adjustment of derivative instruments, partially offset by an increase in collateral received related to derivative contracts.
Reworded paragraphs (63)
Previous wording
Our quarterly financial results are subject to variability related to a number of factors including, but not limited to: the decline in global macroeconomic conditions, the regional conflict in the Middle East, geopolitical tensions with and economic uncertainty in China, Russia’s invasion of Ukraine, inflation, global supply chain disruption, variability in distributor inventory stocking levels as a result of expected demand and promotional activities, weather patterns, herd management decisions, regulatory actions, competitive dynamics, disease outbreaks, product and geographic mix, timing of price increases and timing of investment decisions.
Current wording
Our quarterly financial results are subject to variability related to a number of factors including, but not limited to: the decline in global macroeconomic conditions, competitive dynamics, the regional conflict in the Middle East, geopolitical tensions with and economic uncertainty in China, inflation, global supply chain disruption, variability in distributor inventory stocking levels as a result of expected demand and promotional activities, weather patterns, herd management decisions, regulatory actions, disease outbreaks, product and geographic mix, timing of price increases and timing of investment decisions.
Previous wording
Significant portions of our revenue and costs are exposed to changes in foreign exchange rates. Our products are sold in more than 100 countries and, as a result, our revenue is influenced by changes in foreign exchange rates. For the six months ended June 30, 2024, approximately 42% of our revenue was denominated in foreign currencies. We seek to manage our foreign exchange risk, in part, through operational means, including managing same-currency revenue in relation to same-currency costs and same-currency assets in relation to same-currency liabilities. As we operate in multiple foreign currencies, including the Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese renminbi, euro and other currencies, changes in those currencies relative to the U.S. dollar will impact our revenue, cost of goods and expenses, and consequently, net income. Exchange rate fluctuations may also have an impact beyond our reported financial results and directly impact operations. These fluctuations may affect the ability to buy and sell our goods and services between markets impacted by significant exchange rate variances. For the six months ended June 30, 2024, approximately 58% of our total revenue was in U.S. dollars. Our year-over-year total revenue growth was unfavorably impacted by approximately 3% from changes in foreign currency values relative to the U.S. dollar. For operations in highly inflationary economies, we translate monetary items at rates in effect at the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates.
Current wording
Significant portions of our revenue and costs are exposed to changes in foreign exchange rates. Our products are sold in more than 100 countries and, as a result, our revenue is influenced by changes in foreign exchange rates. For the nine months ended September 30, 2024, approximately 41% of our revenue was denominated in foreign currencies. We seek to manage our foreign exchange risk, in part, through operational means, including managing same-currency revenue in relation to same-currency costs and same-currency assets in relation to same-currency liabilities. As we operate in multiple foreign currencies, including the Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese renminbi, euro and other currencies, changes in those currencies relative to the U.S. dollar will impact our revenue, cost of goods and expenses, and consequently, net income. Exchange rate fluctuations may also have an impact beyond our reported financial results and directly impact operations. These fluctuations may affect the ability to buy and sell our goods and services between markets impacted by significant exchange rate variances. For the nine months ended September 30, 2024, approximately 59% of our total revenue was in U.S. dollars. Our year-over-year total revenue growth was unfavorably impacted by approximately 2% from changes in foreign currency values relative to the U.S. dollar. For operations in highly inflationary economies, we translate monetary items at rates in effect at the balance sheet date, with translation adjustments recorded in Other (income)/deductions––net, and we translate non-monetary items at historical rates.
Previous wording
Total revenue increased by $181 million, or 8%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023, an increase of $243 million, or 11%, on an operational basis. Operational revenue growth was comprised primarily of the following:
Current wording
Total revenue increased by $237 million, or 11%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, an increase of $297 million, or 14%, on an operational basis. Operational revenue growth was comprised primarily of the following:
Previous wording
•volume growth from new products of approximately 4%; and
Current wording
•volume growth from new products of approximately 3%;
Previous wording
•volume decrease from other in-line products of approximately 2%.
Current wording
•volume growth from other in-line products of approximately 3%; and
Previous wording
Total revenue increased by $371 million, or 9%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, an increase of $482 million, or 12%, on an operational basis. Operational revenue growth was comprised primarily of the following:
Current wording
Total revenue increased by $608 million, or 10%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, an increase of $779 million, or 12%, on an operational basis. Operational revenue growth was comprised primarily of the following:
Previous wording
Foreign exchange decreased reported revenue growth by approximately 3%.
Current wording
Foreign exchange decreased reported revenue growth by approximately 2%.
Previous wording
Cost of sales as a percentage of revenue was 28.3% in the three months ended June 30, 2024, compared with 27.8% in the three months ended June 30, 2023. The increase was primarily as a result of:
Current wording
Cost of sales as a percentage of revenue was 29.4% in the three months ended September 30, 2024, compared with 29.7% in the three months ended September 30, 2023. The decrease was primarily as a result of:
Previous wording
Cost of sales as a percentage of revenue was 28.8% in the six months ended June 30, 2024, compared with 28.6% in the six months ended June 30, 2023. The increase was primarily as a result of:
Current wording
Cost of sales as a percentage of revenue remained flat at 29.0% in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023 primarily as a result of:
Previous wording
SG&A expenses increased by $25 million, or 4%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023, primarily as a result of:
Current wording
SG&A expenses increased by $40 million, or 8%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, primarily as a result of:
Previous wording
•lower advertising and promotion costs due to timing of marketing activities.
Current wording
•lower advertising and promotion costs due to timing of marketing activities; and
Previous wording
SG&A expenses increased by $67 million, or 6%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, primarily as a result of:
Current wording
SG&A expenses increased by $107 million, or 7%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, primarily as a result of:
Previous wording
•higher professional and consulting fees; and
Current wording
•higher professional and consulting fees;
Previous wording
R&D expenses increased by $25 million, or 17%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023, primarily as a result of:
Current wording
R&D expenses increased by $15 million, or 10%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, primarily as a result of:
Previous wording
R&D expenses increased by $45 million, or 16%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, primarily as a result of:
Current wording
R&D expenses increased by $60 million, or 14%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, primarily as a result of:
Previous wording
•increased costs due to recent acquisitions; and
Current wording
•increased costs due to recent acquisitions;
Previous wording
Amortization of intangible assets decreased in the three and six months ended versus the comparable prior year periods primarily due to asset impairments taken in 2023 and assets that became fully amortized, partially offset by intangible assets placed in service in 2023.
Current wording
Amortization of intangible assets decreased in the three and nine months ended versus the comparable prior year periods primarily due to asset impairments taken in 2023 and assets that became fully amortized, partially offset by intangible assets placed in service in 2023.
Previous wording
Restructuring charges and certain acquisition and divestiture-related costs were $42 million and $8 million in the three months ended June 30, 2024 and 2023, respectively. Restructuring charges and certain acquisition and divestiture-related costs for the three months ended June 30, 2024 primarily consisted of employee termination costs related to organizational structure refinements, as well as costs related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets. Restructuring charges and certain acquisition and divestiture-related costs in the three months ended June 30, 2023 primarily consisted of employee termination costs related to organizational structure refinements and costs related to the acquisition of Jurox.
Current wording
Restructuring charges and certain acquisition and divestiture-related costs were $5 million and $16 million in the three months ended September 30, 2024 and 2023, respectively. Restructuring charges and certain acquisition and divestiture-related costs in the three months ended September 30, 2024 primarily consisted of costs related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets. Restructuring charges and certain acquisition and divestiture-related costs in the three months ended September 30, 2023 primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, as well as costs related to recent acquisitions.
Previous wording
Restructuring charges and certain acquisition and divestiture-related costs were $46 million and $29 million in the six months ended June 30, 2024 and 2023, respectively. Restructuring charges and certain acquisition and divestiture-related costs for the six months ended June 30, 2024 primarily consisted of employee termination costs related to organizational structure refinements, as well as costs related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. Restructuring charges and certain acquisition and divestiture-related
Current wording
Restructuring charges and certain acquisition and divestiture-related costs were $51 million and $45 million in the nine months ended September 30, 2024 and 2023, respectively. Restructuring charges and certain acquisition and divestiture-related costs for the nine months ended September 30, 2024 primarily consisted of employee termination costs related to organizational structure refinements, as well as costs related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, partially offset by a reversal of certain employee
Previous wording
Interest expense, net of capitalized interest, decreased in the six months ended June 30, 2024 versus the comparable prior year period. The decrease was primarily as a result of a higher debt balance during a portion of the prior year period.
Current wording
Interest expense, net of capitalized interest, decreased in the nine months ended September 30, 2024 versus the comparable prior year period. The decrease was primarily as a result of higher capitalized interest in the current period associated with capital projects to support our future growth and a higher debt balance during a portion of the prior year period.
Previous wording
The change in Other (income)/deductions—netin the three months ended June 30, 2024 versus the comparable prior year period was primarily as a result of a gain on the sale of a majority interest in our pet insurance business in the prior year period, a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, as well as certain asset impairment charges related to our aquaculture business and higher foreign currency losses in the current period, partially offset by certain asset impairment charges related to our precision animal health business in the prior year period.
Current wording
The change in Other (income)/deductions—netin the three months ended September 30, 2024 versus the comparable prior year period was primarily as a result of lower foreign currency losses in the current period and certain asset impairment charges related to our diagnostics and precision animal health businesses in the prior year period.
Previous wording
The change in Other (income)/deductions—netin the six months ended June 30, 2024 versus the comparable prior year period was primarily as a result of a gain on the sale of a majority interest in our pet insurance business, royalty-related income in the prior year period that was predominantly associated with a settlement received from a third-party for underpayment of royalties related to prior periods, a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, as well as higher foreign currency losses and certain asset impairment charges related to our aquaculture business in the current period, partially offset by certain asset impairment charges related to our precision animal health business in the prior year period.
Current wording
The change in Other (income)/deductions—netin the nine months ended September 30, 2024 versus the comparable prior year period was primarily as a result of a gain on the sale of a majority interest in our pet insurance business in the prior year period, royalty-related income in the prior year period that was predominantly associated with a settlement received from a third-party for underpayment of royalties related to prior periods, a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets in the current period, as well as certain asset impairment charges related to our aquaculture business in the current period, partially offset by certain asset impairment charges related to our precision animal health and diagnostics businesses in the prior year period.
Previous wording
The global minimum tax provisions (Pillar Two) resulting from the OECD Base Erosion and Profit Shifting project are effective beginning in 2024 and the impact of these provisions is included in our effective tax rate for the three and six months ended June 30, 2024.
Current wording
The global minimum tax provisions (Pillar Two) resulting from the OECD Base Erosion and Profit Shifting project are effective beginning in 2024 and the impact of these provisions is included in our effective tax rate for the three and nine months ended September 30, 2024.
Previous wording
Our effective tax rate was 20.0% and 23.2% for the three months ended June 30, 2024 and 2023, respectively. The lower effective tax rate for the three months ended June 30, 2024, compared with the three months ended June 30, 2023, was primarily attributable to lower net discrete tax expenses, a higher benefit in the U.S. related to foreign-derived intangible income and a more favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs). Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items.
Current wording
Our effective tax rate was 20.8% and 16.9% for the three months ended September 30, 2024 and 2023, respectively. The higher effective tax rate for the three months ended September 30, 2024, compared with the three months ended September 30, 2023, was primarily attributable to a benefit from the tax loss on the divestiture of Performance Livestock Analytics recorded in the third quarter of 2023, higher net discrete tax expenses and a less favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs), partially offset by a higher benefit in the U.S. related to foreign-derived intangible income. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items.
Previous wording
Our effective tax rate was 19.9% and 22.2% for the six months ended June 30, 2024 and 2023, respectively. The lower effective tax rate for the six months ended June 30, 2024, compared with the six months ended June 30, 2023, was primarily attributable to lower net discrete tax expenses, a higher benefit in the U.S. related to foreign-derived intangible income and a more favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs). Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items.
Current wording
Our effective tax rate was 20.2% and 20.5% for the nine months ended September 30, 2024 and 2023, respectively. The lower effective tax rate for the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, was primarily attributable to a higher benefit in the U.S. related to foreign-derived intangible income, lower net discrete tax expenses and a more favorable jurisdictional mix of earnings (which includes the impact of the location of earnings and repatriation costs), partially offset by a benefit from the tax loss on the divestiture of Performance Livestock Analytics recorded in the third quarter of 2023. Jurisdictional mix of earnings can vary depending on repatriation decisions, operating fluctuations in the normal course of business and the impact of non-deductible items and non-taxable items.
Previous wording
•Companion animal revenue increased primarily due to growth in sales of our mAb products for osteoarthritis (OA) pain, Librela and Solensia, Simparica Trio and key dermatology products, partially offset by lower sales of small animal vaccines.
Current wording
•Companion animal revenue increased primarily due to growth in sales of our mAb products for osteoarthritis (OA) pain, Librela® and Solensia®, Simparica Trio® and key dermatology products.
Previous wording
•Livestock growth was due to increased sales of cattle and swine products, partially offset by lower sales of poultry products. Sales of cattle and swine products grew due to supply availability in the current year compared to the prior year period. Sales of products in our poultry portfolio declined due to lower sales of medicated feed additives.
Current wording
•Livestock growth was primarily due to increased sales of cattle and swine products. Sales of cattle and swine products grew due to supply availability in the current year compared to the prior year period.
Previous wording
Other unallocated expenses increased by $22 million, or 19%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, primarily due to unfavorable foreign exchange, higher manufacturing costs, higher inventory obsolescence, scrap and other charges, partially offset by lower freight charges.
Current wording
U.S. segment earnings increased by $145 million, or 19%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023, primarily due to higher revenue, partially offset by higher cost of sales.
Previous wording
International segment revenue increased by $40 million, or 4%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023. Operational revenue increased by $101 million, or 10%, driven by growth of $62 million in companion animal products and $39 million in livestock products.
Current wording
International segment revenue increased by $65 million, or 7%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023. Operational revenue increased by $125 million, or 13%, driven by growth of $58 million in companion animal products and $67 million in livestock products.
Previous wording
•Companion animal operational revenue growth was driven primarily by the growth in sales of key dermatology products, our mAb products for OA pain, Librela and Solensia, vaccine products and small animal parasiticides.
Current wording
•Companion animal operational revenue growth was driven primarily by the growth in sales of key dermatology products, our mAb products for OA pain, Librela and Solensia, small animal parasiticides and vaccine products.
Previous wording
•Livestock operational revenue growth was due to increased sales of cattle, poultry and fish products, partially offset by declines in sheep and swine products. Sales of cattle products grew due to price, partially offset by volume declines as compared to the prior year period due to prior year supply recoveries. Sales of products in our poultry portfolio grew due to price and demand generation efforts in key poultry markets. Sales of our fish portfolio grew due to increased vaccine sales in Norway, partially offset by lower sales of anti-infective products in Chile. Sales of sheep products declined primarily due to supply constraints. Sales of swine products declined due to lower sales in China, partially offset by price.
Current wording
•Livestock operational revenue growth was due to increased sales of cattle, poultry, fish and swine products, partially offset by declines in sheep products. Sales of cattle products grew primarily due to price, increased demand and improved supply, partially offset by market conditions in China. Sales of products in our poultry portfolio grew primarily due to price and key account penetration. Sales of products in our fish portfolio grew due to increased vaccine sales in Norway. Sales of products in our swine portfolio grew as a result of price, favorable market conditions and key market penetration. Sales of sheep products declined primarily due to poor market conditions.
Previous wording
•Additionally, International segment revenue was unfavorably impacted by foreign exchange which decreased revenue by $111 million, or 6%, primarily driven by the Argentinian peso, Turkish lira, Japanese yen, Chinese renminbi and Russian ruble.
Current wording
•Additionally, International segment revenue was unfavorably impacted by foreign exchange which decreased revenue by $60 million, or 6%, primarily driven by the Argentinian peso, Brazilian real, Turkish lira, Mexican peso and Japanese yen.
Previous wording
International segment earnings increased by $3 million, or 1%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023. Operational earnings growth was $57 million, or 11%, primarily due to higher revenue, partially offset by higher cost of sales and operating expenses.
Current wording
International segment earnings increased by $49 million, or 10%, in the three months ended September 30, 2024, compared with the three months ended September 30, 2023. Operational earnings growth was $76 million, or 15%, primarily due to higher revenue, partially offset by higher cost of sales and operating expenses.
Previous wording
U.S. segment revenue increased by $301 million, or 14%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, reflecting an increase of $298 million in companion animal products and $3 million in livestock products.
Current wording
U.S. segment revenue increased by $473 million, or 14%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, reflecting an increase of $458 million in companion animal products and $15 million in livestock products.
Previous wording
•Livestock growth was due to increased sales of cattle and swine products, partially offset by lower sales of poultry products. Sales of cattle products grew due to timing of supply partially offset by price. Sales of products in our poultry portfolio declined primarily due to lower sales of medicated feed additives, partially offset by higher sales of vaccines.
Current wording
•Livestock growth was due to increased sales of cattle and swine products, partially offset by lower sales of poultry products. Sales of cattle products grew due to timing of supply partially offset by price. Sales of products in our poultry portfolio declined primarily as a result of the expanded use of lower cost alternatives and generic competition.
Previous wording
U.S. segment earnings increased by $275 million, or 20%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023, primarily due to higher revenue and lower operating expenses, partially offset by higher cost of sales.
Current wording
U.S. segment earnings increased by $420 million, or 20%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023, primarily due to higher revenue and lower operating expenses, partially offset by higher cost of sales.
Previous wording
International segment revenue increased by $69 million, or 3%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023. Operational revenue increased by $180 million, or 9%, driven by growth of $132 million in companion animal products and $48 million in livestock products.
Current wording
International segment revenue increased by $134 million, or 5%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. Operational revenue increased by $305 million, or 10%, driven by growth of $190 million in companion animal products and $115 million in livestock products.
Previous wording
•Livestock operational revenue growth was due to increased sales of cattle, poultry and fish products, partially offset by declines in sheep products. Sales of cattle products grew primarily due to price and improved market conditions, partially offset by prior year supply recoveries. Sales of products in our poultry portfolio grew primarily due to price and demand generation efforts in key poultry markets. Sales of products in our fish portfolio grew due to increased vaccine sales in Norway, partially offset by lower sales of anti-infective products in Chile. Sales of sheep products declined due to supply constraints.
Current wording
•Livestock operational revenue growth was due to increased sales of cattle, poultry and fish products, partially offset by a decline in sheep products. Sales of cattle products grew due to price, partially offset by volume declines as compared to the prior year period due to prior year supply recoveries. Sales of products in our poultry portfolio grew due to price and demand generation efforts in key poultry markets. Sales of our fish portfolio grew due to increased vaccine sales in Norway, partially offset by lower sales of anti-infective products in Chile. Sales of sheep products declined primarily due to poor market conditions.
Previous wording
•Additionally, International segment revenue was unfavorably impacted by foreign exchange which decreased revenue by $61 million, or 6%, primarily driven by the Argentinian peso, Turkish lira, Japanese yen, Chinese renminbi and Russian ruble.
Current wording
•Additionally, International segment revenue was unfavorably impacted by foreign exchange which decreased revenue by $171 million, or 5%, primarily driven by the Argentinian peso, Turkish lira, Japanese yen, Brazilian real, Chinese renminbi and Russian ruble.
Previous wording
International segment earnings increased by $3 million, or 0%, in the six months ended June 30, 2024, compared with the six months ended June 30, 2023. Operational earnings growth was $103 million, or 10%, primarily due to higher revenue, partially offset by higher cost of sales and operating expenses.
Current wording
International segment earnings increased by $52 million, or 3%, in the nine months ended September 30, 2024, compared with the nine months ended September 30, 2023. Operational earnings growth was $179 million, or 12%, primarily due to higher revenue, partially offset by higher cost of sales and operating expenses.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
•higher selling and distribution costs; and
Current report — wording carried from elsewhere
Interest expense, net of capitalized interest, decreased in the three months ended September 30, 2024 versus the comparable prior year period. The decrease was primarily as a result of higher capitalized interest in the current period associated with capital projects to support our future growth.
Current report — wording carried from elsewhere
The effective tax rate on adjusted pretax income was 20.3% and 20.5% for the nine months ended September 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
Pursuant to the indenture, we are able to redeem the senior notes of any series, in whole or in part, at any time by paying a “make whole” premium, plus accrued and unpaid interest to, but excluding, the date of redemption. Upon the occurrence of a change of control of us and a downgrade of the
Current report — wording carried from elsewhere
39 | contingencies, such as legal proceedings or investigations, plans related to share repurchases and dividends, government regulation and financial results. These statements are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties, many of which are beyond our control, and are based on assumptions that could prove to be inaccurate. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following:
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
•volume decrease from other in-line products of approximately 1%.
Previous report — wording carried elsewhere
•the reduced impact of purchase accounting adjustments.
Previous report — wording carried elsewhere
Interest expense, net of capitalized interest, was relatively flat in the three months ended June 30, 2024 versus the comparable prior year period.
Previous report — wording carried elsewhere
U.S. segment earnings increased by $133 million, or 18%, in the three months ended June 30, 2024, compared with the three months ended June 30, 2023, primarily due to higher revenue and lower operating expenses, partially offset by higher cost of sales.
Previous report — wording carried elsewhere
The integration and disintegration costs associated with a business combination, asset acquisition or divestiture may occur over several years, with the more significant impacts generally ending within three years of the transaction. Because of the need for certain external approvals for some