Segment, Geographic and Other Revenue Information (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Selected Income Statement Information by Segment

The following table provides selected income statement information by reportable segment:



	Revenues				R&D Expenses						Earnings^(a)
(MILLIONS OF DOLLARS)	March 31, 2013		April 1, 2012		March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
Three Months Ended
Reportable Segments:
Primary Care^(b)	$	3,238	$	4,097	$	223		$	241		$	2,014		$	2,670
Specialty Care and Oncology	3,536		3,868		404			373			2,314			2,596
Established Products and Emerging Markets^(c)	4,772		5,100		64			73			2,810			3,177
Total reportable segments	11,546		13,065		691			687			7,138			8,443
Other operating segments^(d)	1,901		1,767		111			112			448			353
Other business activities^(e)	53		53		654			674			(658		)	(681		)
Reconciling Items:
Corporate^(f)	—		—		240			276			(1,361		)	(1,705		)
Purchase accounting adjustments^(g)	—		—		(1		)	(1		)	(1,232		)	(1,446		)
Acquisition-related costs^(h)	—		—		—			5			(95		)	(183		)
Certain significant items⁽ⁱ⁾	—		—		93			302			(128		)	(2,067		)
Other unallocated^(j)	—		—		12			7			(191		)	(279		)
	$	13,500	$	14,885	$	1,800		$	2,062		$	3,921		$	2,435


^(a)	Income from continuing operations before provision for taxes on income.

^(b)

Revenues and Earnings from the Primary Care segment decreased in the three months ended March 31, 2013 as compared to the three months ended April 1, 2012, and earnings as a percentage of revenues also declined, primarily due to the loss of exclusivity for Lipitor in developed Europe and Australia and the subsequent shift in the reporting of Lipitor in those markets to the Established Products business unit.

^(c)

Revenues and Earnings from the Established Products and Emerging Markets segment decreased in the three months ended March 31, 2013 as compared to the three months ended April 1, 2012, driven by, among other things, the expiration of the 180-day exclusivity period in the U.S. for atorvastatin and the loss of exclusivity in the U.S. for branded Lipitor, partially offset by the addition of products in certain markets that shifted to the Established Products unit from other business units beginning January 1, 2013. Earnings as a percentage of revenue decreased due to the change in the mix of products.


^(d)	Includes our Animal Health (Zoetis) operating segment and the Consumer Healthcare operating segment. The Animal Health earnings reflect the income before taxes of Zoetis on a management-reporting basis and generally include higher operating costs associated with being a standalone public company.


^(e)	Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the R&D costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization.


^(f)	Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities, and for Earnings includes, among other things, administration expenses, interest income/(expense), certain compensation and other costs not charged to our operating segments.


^(g)	Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment.

^(h)

Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring (see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives for additional information).


⁽ⁱ⁾	Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis.

For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $217 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $396 million, (iv) gain associated with the transfer of certain product rights to our equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $76 million and (vi) other charges of $16 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment: Equity-Method Investment, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions––Net.

For Earnings in the first quarter of 2012, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $817 million, (ii) charges for certain legal matters of $775 million, (iii) certain asset impairment charges of $412 million, (iv) costs associated with the separation of Zoetis of $38 million and (v) other charges of $25 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions––Net.

For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs.


^(j)	Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment.

Schedule of Revenues by Geographic Region

The following table provides revenues by geographic area:



	Three Months Ended
(MILLIONS OF DOLLARS)	March 31, 2013		April 1, 2012		% Change
Revenues
United States	$	5,368	$	5,952	(10	)
Developed Europe^(a)	3,029		3,537		(14	)
Developed Rest of World^(b)	2,172		2,612		(17	)
Emerging Markets^(c)	2,931		2,784		5
Revenues	$	13,500	$	14,885	(9	)


^(a)	Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.3 billion in the first quarter of 2013 and $2.6 billion in the first quarter of 2012.


^(b)	Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.


^(c)	Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe.

Schedule of Significant Product Revenues



The following table provides revenues by product:
	Three Months Ended
(MILLIONS OF DOLLARS)	March 31, 2013		April 1, 2012
Revenues from biopharmaceutical products:
Lyrica	$	1,066	$	955
Enbrel (Outside the U.S. and Canada)	877		899
Prevnar 13/Prevenar 13	846		945
Celebrex	653		634
Lipitor^(a)	626		1,395
Viagra	461		496
Zyvox	342		325
Sutent	302		300
Norvasc	301		334
Premarin family	244		261
Genotropin	189		195
BeneFIX	189		183
Vfend	187		178
Chantix/Champix	166		178
Pristiq	166		151
Detrol/Detrol LA	151		195
Xalatan/Xalacom	147		227
Refacto AF/Xyntha	139		132
Zithromax/Zmax	116		123
Zoloft	116		130
Medrol	113		134
Effexor	105		129
Zosyn/Tazocin	87		128
Tygacil	87		81
Relpax	86		85
Fragmin	86		91
Rapamune	84		82
Prevnar/Prevenar (7-valent)	81		138
Cardura	76		84
EpiPen	72		58
Revatio	72		136
Sulperazon	71		58
Xanax XR	70		68
Inlyta	63		7
Aricept^(b)	62		94
Unasyn	56		54
Caduet	56		65
Xalkori	53		17
Neurontin	52		58
Inspra	52		49
Toviaz	52		46
Aromasin	51		56
Dalacin/Cleocin	50		49
Alliance revenues^(c)	747		836



All other biopharmaceutical products^(d)	1,878		2,226
	11,546		13,065
Other revenues:
Animal Health (Zoetis)	1,090		1,040
Consumer Healthcare	811		727
Other^(e)	53		53
	$	13,500	$	14,885


^(a)	Lipitor lost exclusivity in the U.S. in November 2011 and various other major markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $792 million in the first quarter of 2013, in comparison with the first quarter of 2012.


^(b)	Represents direct sales under license agreement with Eisai Co., Ltd.


^(c)	Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis.


^(d)	Includes sales of generic atorvastatin.


^(e)	Represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details