v3.25.2
Business Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information
Note 14. Business Segment Information
We operate our business as a single segment engaged in the development, manufacturing, marketing and sales of animal health products for both pets and farm animals. Consistent with our operational structure, our Chief Executive Officer (CEO), as the chief operating decision maker, makes resource allocation and business process decisions globally across our consolidated business. Strategic and resource allocation decisions are managed globally, with global functional leaders responsible for determining significant costs and investments and with regional leaders responsible for overseeing the execution of our global strategy. Managing and allocating resources at the global corporate level enables our CEO to assess the overall level of resources available and how to best deploy these resources across functions, product types, regional commercial organizations and R&D projects in line with our overarching long-term, corporate-wide strategic goals, rather than on a product or geographic basis. Consistent with this decision-making process, our CEO considers consolidated net income (loss), which is our single segment’s principal measure of segment profit and loss, when evaluating performance. Our CEO also considers these measures, as well as other factors, such as an assessment of a new product’s future market potential, when determining how to allocate company-wide resources.
Significant expenses are amounts that are regularly provided to our CEO and included in consolidated net income (loss), our primary measure of our single segment’s profit or loss. Our CEO regularly reviews reported consolidated revenue, gross profit, other significant expenses and consolidated net income (loss), in addition to forecasted revenue, significant expenses and net income (loss) amounts for future periods. A summary of our consolidated net income (loss) for the three and six months ended June 30, 2025 and 2024 is as follows, including the significant expenses provided to and regularly reviewed by our CEO, as well as other expenses, which are included in consolidated net income (loss), but are not regularly provided to and/or reviewed by our CEO:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue$1,241 $1,184 $2,434 $2,389 
Cost of sales528 495 1,037 1,010 
Gross profit713 689 1,397 1,379 
Other significant segment expenses:
Research and development92 89 186 176 
Marketing and selling272 232 497 442 
General and administrative128 122 244 249 
Interest expense, net of capitalized interest48 65 88 131 
Other expense, net11 2 23 11 
Income tax expense (benefit)14 18 7 (2)
Total other significant segment expenses565 528 1,045 1,007 
Other expenses (1)
137 211 274 390 
Net income (loss)$11 $(50)$78 $(18)
(1)Other expenses include amortization of intangible assets and asset impairment, restructuring and other special charges.
Depreciation expense related to property and equipment and amortization expense related to software for the three and six months ended June 30, 2025 and 2024, respectively, were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Depreciation expense
$25 $22 $49 $44 
Amortization of software
8 10 17 20 
Given our single reporting segment structure, we manage our assets on a total company basis. Cash paid for acquisitions, intangible assets and property and equipment and software, and cash proceeds from divestitures, are all summarized in the Investing Activities section of our condensed consolidated statements of cash flows.