Segment, Geographic and Other Revenue Information

A. Segment Information

We manage our commercial operations through a global commercial structure consisting of three operating segments, each of which is led by a single manager––the Global Innovative Pharmaceutical segment (GIP); the Global Vaccines, Oncology and Consumer Healthcare segment (VOC); and the Global Established Pharmaceutical segment (GEP). Each operating segment has responsibility for its commercial activities and for certain IPR&D projects for new investigational products and additional indications for in-line products that generally have achieved proof of concept.

We have restated prior-period information (Revenues and Earnings, as defined by management) to conform to the current management structure. As our operations were not managed under the new structure until the beginning of the first quarter of 2014, certain costs and expenses could not be directly attributed to one of the new operating segments. As a result, our operating segment results for the second quarter and first six months of 2013 include allocations. The amounts subject to allocation methods in the second quarter of 2013 were approximately $520 million of Selling, informational and administrative expenses (SI&A) and approximately $160 million of Research and development expenses (R&D), and the amounts subjected to allocation methods in the first six months of 2013 were approximately $1.0 billion of Selling, informational and administrative expenses (SI&A) and approximately $420 million of Research and development expenses (R&D):


•	The SI&A expenses were allocated using proportional allocation methods based on associated selling costs, revenues or product-specific costs, as applicable.


•	The R&D expenses were allocated based on product-specific R&D costs or revenue metrics, as applicable.

Management believes that the allocations are reasonable.

We regularly review our segments and the approach used by management to evaluate performance and allocate resources.

Operating Segments

Some additional information about each segment follows:


•	Global Innovative Pharmaceutical segment––GIP comprises medicines within several therapeutic areas that are generally expected to have market exclusivity beyond 2015. These therapeutic areas include immunology and inflammation, cardiovascular/metabolic, neuroscience and pain, rare diseases and women's/men's health.


•	Global Vaccines, Oncology and Consumer Healthcare segment––VOC focuses on the development and commercialization of vaccines and products for oncology and consumer healthcare. Each of the three businesses that comprise this segment operates with distinct specialization in terms of the science, talent and market approach necessary to deliver value to consumers and patients.


•	Global Established Pharmaceutical segment––GEP includes the brands that have lost market exclusivity and, generally, the mature, patent-protected products that are expected to lose exclusivity through 2015 in most major markets and, to a much smaller extent, generic pharmaceuticals. Additionally, GEP includes our sterile injectable products and biosimilar development portfolio.

Our chief operating decision maker uses the revenues and earnings of the three operating segments, among other factors, for performance evaluation and resource allocation.

Other Costs and Business Activities

Certain costs are not allocated to our operating segment results, such as costs associated with the following:

•

Worldwide Research and Development, which is generally responsible for research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate operating segment for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization also has responsibility for certain science-based and other platform-services organizations, which provide technical expertise and other services to the various R&D projects. Worldwide Research and Development is also responsible for facilitating all regulatory submissions and interactions with regulatory agencies, including all safety-event activities.

•

Pfizer Medical, which is responsible for the provision of medical information to healthcare providers, patients and other parties, transparency and disclosure activities, clinical trial results publication, grants for healthcare quality improvement and medical education, partnerships with global public health and medical associations, regulatory inspection readiness reviews, internal audits of Pfizer-sponsored clinical trials and internal regulatory compliance processes.


•	Corporate, representing platform functions (such as worldwide technology, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement) and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments.


•	Other unallocated costs, representing overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment.

•

Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) certain significant items, which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities.

Segment Assets

We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared (such as our plant network assets) or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $172.6 billion as of June 29, 2014 and approximately $172.1 billion as of December 31, 2013.

Selected Income Statement Information



The following table provides selected income statement information by reportable segment:
	Revenues				Earnings^(a)
(MILLIONS OF DOLLARS)	June 29, 2014		June 30, 2013		June 29, 2014			June 30, 2013
Three Months Ended
Reportable Segments:
Global Innovative Pharmaceutical (GIP)	$	3,547	$	3,726	$	2,009		$	2,320
Global Vaccines, Oncology and Consumer Healthcare (VOC)	2,579		2,263		1,157			1,063
Global Established Pharmaceutical (GEP)	6,513		6,921		4,176			4,409
Total reportable segments	12,639		12,910		7,342			7,792
Other business activities^(b)	63		63		(713		)	(671		)
Reconciling Items:
Corporate^(c)	—		—		(1,287		)	(1,437		)
Purchase accounting adjustments^(c)	—		—		(949		)	(1,108		)
Acquisition-related costs^(c)	—		—		(47		)	(113		)
Certain significant items^(d)	71		—		(238		)	1,012
Other unallocated	—		—		(105		)	(118		)
	$	12,773	$	12,973	$	4,003		$	5,357
Six Months Ended
Reportable Segments:
Global Innovative Pharmaceutical business (GIP)	$	6,623	$	7,032	$	3,776		$	4,215
Global Vaccines, Oncology and Consumer Healthcare (VOC)	4,753		4,453		2,214			2,058
Global Established Pharmaceutical business (GEP)	12,503		13,782		8,225			8,861
Total reportable segments	23,879		25,267		14,215			15,134
Other business activities^(b)	119		116		(1,380		)	(1,331		)
Reconciling Items:
Corporate^(c)	—		—		(2,487		)	(2,771		)
Purchase accounting adjustments^(c)	—		—		(1,957		)	(2,327		)
Acquisition-related costs^(c)	—		—		(77		)	(203		)
Certain significant items^(d)	128		—		(1,254		)	924
Other unallocated	—		—		(210		)	(344		)
	$	24,126	$	25,383	$	6,850		$	9,082


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


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


^(c)	For a description, see the "Other Costs and Business Activities" section above.


^(d)	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 Revenues in the second quarter and first six months of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisition, Divestiture, Collaborative Arrangement and Equity-Method Investments: Divestiture.

For Earnings in the second quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $9 million, (ii) charges for certain legal matters of $4 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $212 million and (v) other charges of $31 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions—Net.

For Earnings in the second quarter of 2013, certain significant items includes: (i) patent litigation settlement income of $1.4 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $185 million, (iii) certain asset impairments and related charges of $95 million, and (iv) other charges of $59 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions—Net.

For Earnings in the first six months of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $17 million, (ii) charges for certain legal matters of $698 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $346 million and (v) other charges of $113 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions—Net.

For Earnings in the first six months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.4 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $400 million, (iii) net credits for certain legal matters of $100 million, (iv) certain asset impairment charges of $489 million, (v) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $459 million, (vi) costs associated with the separation of Zoetis of $18 million and (vii) other charges of $79 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions—Net.

Equity in the net income of investees accounted for by the equity method is not significant for any of our operating segments.

B. Geographic Information



The following table provides revenues by geographic area:
	Three Months Ended						Six Months Ended
(MILLIONS OF DOLLARS)	June 29, 2014		June 30, 2013		% Change		June 29, 2014		June 30, 2013		% Change
United States	$	4,906	$	5,090	(4	)	$	9,181	$	10,004	(8	)
Developed Europe^(a)	3,008		2,913		3		5,803		5,717		2
Developed Rest of World^(b)	1,861		2,108		(12	)	3,589		4,147		(13	)
Emerging Markets^(c)	2,998		2,862		5		5,553		5,515		1
Revenues	$	12,773	$	12,973	(2	)	$	24,126	$	25,383	(5	)


^(a)	Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.3 billion and $2.2 billion in the second quarter of 2014 and 2013, respectively, and $4.5 billion and $4.3 billion in the first six months of 2014 and 2013, respectively.


^(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.

C. Other Revenue Information



The following table provides detailed revenue information:
		Three Months Ended				Six Months Ended
(MILLIONS OF DOLLARS)	Business^(a)	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Biopharmaceutical revenues:
Lyrica^(b)	GIP/GEP	$	1,315	$	1,134	$	2,465	$	2,200
Prevnar family	V	1,097		969		2,024		1,896
Enbrel (Outside the U.S. and Canada)	GIP	977		960		1,891		1,837
Celebrex	GEP	762		715		1,386		1,368
Lipitor	GEP	543		545		1,000		1,171
Viagra^(c)	GEP/GIP	427		484		801		945
Zyvox	GEP	348		346		669		688
Sutent	O	310		312		578		614
Norvasc	GEP	282		313		560		614
Premarin family	GEP	274		273		522		517
BeneFIX	GIP	227		217		428		406
Vfend	GEP	221		177		398		364
Pristiq	GEP	198		177		370		343
Genotropin	GIP	194		198		360		387
Chantix/Champix	GIP	170		166		317		332
Refacto AF/Xyntha	GIP	171		146		316		285
Xalatan/Xalacom	GEP	128		147		247		294
Medrol	GEP	115		123		221		236
Zoloft	GEP	104		109		205		225
Xalkori	O	108		67		196		120
Inlyta	O	101		71		189		134
Relpax	GEP	98		94		185		180
Sulperazon	GEP	92		73		180		144
Effexor	GEP	96		125		178		230
Fragmin	GEP	95		94		176		180
Rapamune	GIP	87		86		175		170
Zithromax/Zmax	GEP	76		83		168		199
Tygacil	GEP	82		92		156		179
EpiPen	GEP	89		73		152		145
Zosyn/Tazocin	GEP	75		102		149		189
Revatio	GEP	68		78		144		150
Toviaz	GIP	79		65		142		117
Cardura	GEP	68		75		134		151
Xanax/Xanax XR	GEP	68		65		127		135
Inspra	GEP	62		59		123		111
Xeljanz	GIP	68		22		120		33
Somavert	GIP	59		55		109		103
Neurontin	GEP	58		56		107		108
Unasyn	GEP	54		53		100		109
Diflucan	GEP	46		60		98		105
Protonix/Pantoprazole	GEP	50		48		98		95
Detrol/Detrol LA	GEP	57		155		94		306
Depo-Provera	GEP	40		53		93		90
BMP2	GIP	51		66		90		111
Alliance revenues^(d)	GEP/GIP	235		756		448		1,503
All other GIP	GIP	131		148		237		269
All other GEP	GEP	1,620		1,781		3,187		3,490
All other V/O	V/O	51		44		93		78
Total biopharmaceutical revenues		11,727		12,110		22,206		23,656
Other revenues:
Consumer Healthcare	C	912		800		1,673		1,611
Other^(e)		134		63		247		116
Revenues		$	12,773	$	12,973	$	24,126	$	25,383


^(a)	Indicates the business to which the revenues relate. GIP = the Global Innovative Pharmaceutical segment; V= the Global Vaccines

business; O= the Global Oncology business; C = the Consumer Healthcare business; and GEP = the Global Established Pharmaceutical segment.


^(b)	Lyrica revenues from all of Europe are included in GEP. All other Lyrica revenues are included in GIP.


^(c)	Viagra revenues from the U.S. and Canada are included in GIP. All other Viagra revenues are included in GEP.


^(d)	Includes Enbrel (GIP, in the U.S. and Canada through October 31, 2013), Spiriva (GEP), Rebif (GIP), Aricept (GEP) and Eliquis (GIP).


^(e)	Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes, in 2014, the revenues related to our transitional manufacturing and supply agreements with Zoetis.