Segment, Geographic and Other Revenue Information (Tables)

9 Months Ended

Oct. 02, 2016

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

The following table provides selected income statement information by reportable segment:
	Three Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		October 2, 2016			September 27, 2015
Reportable Segments:
IH(b)	$	7,332	$	6,752	$	4,187		$	4,018
EH(c)	5,712		5,335		3,128			3,181
Total reportable segments	13,045		12,087		7,315			7,199
Other business activities(d)	—		—		(786		)	(715		)
Reconciling Items:
Corporate(e)	—		—		(1,504		)	(1,376		)
Purchase accounting adjustments(e)	—		—		(966		)	(960		)
Acquisition-related costs(e)	—		—		(280		)	(541		)
Certain significant items(f)	—		—		(1,969		)	(837		)
Other unallocated	—		—		(206		)	(73		)
	$	13,045	$	12,087	$	1,604		$	2,697
	Nine Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		October 2, 2016			September 27, 2015
Reportable Segments:
IH(b)	$	21,471	$	19,120	$	12,470		$	10,831
EH(c)	17,725		15,683		9,985			9,540
Total reportable segments	39,196		34,804		22,454			20,371
Other business activities(d)	—		—		(2,190		)	(2,127		)
Reconciling Items:
Corporate(e)	—		—		(4,123		)	(3,949		)
Purchase accounting adjustments(e)	—		—		(3,103		)	(2,698		)
Acquisition-related costs(e)	—		—		(598		)	(631		)
Certain significant items(f)	—		—		(4,112		)	(1,369		)
Other unallocated	—		—		(753		)	(278		)
	$	39,196	$	34,804	$	7,575		$	9,319

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

^(b)  Effective as of the beginning of the second quarter of 2016, in connection with the formation of the GPD organization, certain development-related functions transferred from IH to GPD. We have reclassified approximately $76 million of costs in the first quarter of 2016, approximately $77 million of costs in the third quarter of 2015 and approximately $223 million of costs in the first nine months of 2015 from IH to GPD to conform to the current period presentation as part of GPD. Additionally, Anacor's and Medivations’s commercial operations are included in IH's operating results in our condensed consolidated statements of income. As a result, commencing from the acquisition date of June 24, 2016, IH's operating results for the third quarter and first nine months of 2016 include approximately three months of legacy Anacor operations, which were immaterial, and commencing from the acquisition date of September, 28, 2016, IH's operating results for the third quarter and first nine months of 2016 reflect three business days of legacy Medivation operations, which were immaterial.

^(c)  On September 3, 2015, we acquired Hospira. Commencing from the acquisition date, our condensed consolidated statement of income includes the operating results of Hospira. As a result, legacy Hospira commercial operations, including the legacy Hospira One-2-One contract manufacturing business, are included in EH’s operating results in our condensed consolidated statements of income for the third quarter and first nine months of 2016. In accordance with our domestic and international reporting periods, our results of operations and EH's operating results for the third quarter and first nine months of2015 reflect only one month of legacy Hospira U.S. operations but no financial results from legacy Hospira international operations. See Note 2A for additional information. Effective as of the beginning of 2016, our entire contract manufacturing business, Pfizer CentreOne (previously known as Pfizer CentreSource or PCS), is part of EH. Pfizer CentreOne consists of (i) the revenues and expenses of legacy Pfizer's contract manufacturing and active pharmaceutical ingredient sales operation, including the revenues and expenses related to our manufacturing and supply agreements with Zoetis; and (ii) the revenues and expenses of legacy Hospira's One-2-One sterile injectables contract manufacturing operation, which has been included in EH since we acquired Hospira on September 3, 2015. Prior to 2016, PCS was managed outside our operating segments as part of PGS and reported as "Other Business Activities". We have reclassified prior period PCS operating results ($116 million of PCS revenues and $15 million of PCS earnings in the third quarter of 2015, and $360 million of PCS revenues and $66 million of PCS earnings in the first nine months of 2015) to conform to the current period presentation as part of EH. As noted above, also effective as of the beginning of 2016, in connection with the formation of a new EH R&D organization, certain functions transferred from Pfizer’s WRD organization to the new EH R&D organization. We have reclassified approximately $68 million of costs in the third quarter of 2015 and $202 million of costs in the first nine months of 2015 from WRD to EH to conform to the current period presentation as part of EH.

^(d)  Other business activities includes the costs managed by our WRD, GPD and Pfizer Medical organizations.

^(e)  For a description, see the “Other Costs and Business Activities” section above.

^(f)  Certain significant items are substantive and in some cases recurring (such as restructuring or legal charges), or 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 third quarter of 2016, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $375 million, (ii) income for certain legal matters of $40 million, (iii) an impairment charge related to the write-down of the HIS net assets to fair value less estimated costs to sell of $1.4 billion, (iv) certain asset impairment charges of $126 million, (v) charges for business and legal entity alignment of $69 million and (vi) other charges of $17 million. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the third quarter of 2015, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $107 million, (ii) certain asset impairment charges of $633 million, (iii) charges for business and legal entity alignment of $60 million and (iv) other charges of $36 million. For additional information, see Note 3 and Note 4.

For Earnings in the first nine months of2016, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $743 million, (ii) charges for certain legal matters of $506 million, (iii) an impairment charge related to the write-down of the HIS net assets to fair value less estimated costs to sell of $1.4 billion, (iv) certain asset impairment charges of $1.1 billion, (v) charges for business and legal entity alignment of $180 million and (vi) other charges of $189 million. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2015, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $302 million, (ii) certain asset impairment charges of $633 million, (iii) charges for business and legal entity alignment of $224 million, (iv) charges for certain legal matters of $92 million, and (v) other charges of $117 million. For additional information, see Note 3 and Note 4.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table provides selected income statement information by reportable segment:
	Three Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		October 2, 2016			September 27, 2015
Reportable Segments:
IH(b)	$	7,332	$	6,752	$	4,187		$	4,018
EH(c)	5,712		5,335		3,128			3,181
Total reportable segments	13,045		12,087		7,315			7,199
Other business activities(d)	—		—		(786		)	(715		)
Reconciling Items:
Corporate(e)	—		—		(1,504		)	(1,376		)
Purchase accounting adjustments(e)	—		—		(966		)	(960		)
Acquisition-related costs(e)	—		—		(280		)	(541		)
Certain significant items(f)	—		—		(1,969		)	(837		)
Other unallocated	—		—		(206		)	(73		)
	$	13,045	$	12,087	$	1,604		$	2,697
	Nine Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		October 2, 2016			September 27, 2015
Reportable Segments:
IH(b)	$	21,471	$	19,120	$	12,470		$	10,831
EH(c)	17,725		15,683		9,985			9,540
Total reportable segments	39,196		34,804		22,454			20,371
Other business activities(d)	—		—		(2,190		)	(2,127		)
Reconciling Items:
Corporate(e)	—		—		(4,123		)	(3,949		)
Purchase accounting adjustments(e)	—		—		(3,103		)	(2,698		)
Acquisition-related costs(e)	—		—		(598		)	(631		)
Certain significant items(f)	—		—		(4,112		)	(1,369		)
Other unallocated	—		—		(753		)	(278		)
	$	39,196	$	34,804	$	7,575		$	9,319

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

^(b)  Effective as of the beginning of the second quarter of 2016, in connection with the formation of the GPD organization, certain development-related functions transferred from IH to GPD. We have reclassified approximately $76 million of costs in the first quarter of 2016, approximately $77 million of costs in the third quarter of 2015 and approximately $223 million of costs in the first nine months of 2015 from IH to GPD to conform to the current period presentation as part of GPD. Additionally, Anacor's and Medivations’s commercial operations are included in IH's operating results in our condensed consolidated statements of income. As a result, commencing from the acquisition date of June 24, 2016, IH's operating results for the third quarter and first nine months of 2016 include approximately three months of legacy Anacor operations, which were immaterial, and commencing from the acquisition date of September, 28, 2016, IH's operating results for the third quarter and first nine months of 2016 reflect three business days of legacy Medivation operations, which were immaterial.

^(c)  On September 3, 2015, we acquired Hospira. Commencing from the acquisition date, our condensed consolidated statement of income includes the operating results of Hospira. As a result, legacy Hospira commercial operations, including the legacy Hospira One-2-One contract manufacturing business, are included in EH’s operating results in our condensed consolidated statements of income for the third quarter and first nine months of 2016. In accordance with our domestic and international reporting periods, our results of operations and EH's operating results for the third quarter and first nine months of2015 reflect only one month of legacy Hospira U.S. operations but no financial results from legacy Hospira international operations. See Note 2A for additional information. Effective as of the beginning of 2016, our entire contract manufacturing business, Pfizer CentreOne (previously known as Pfizer CentreSource or PCS), is part of EH. Pfizer CentreOne consists of (i) the revenues and expenses of legacy Pfizer's contract manufacturing and active pharmaceutical ingredient sales operation, including the revenues and expenses related to our manufacturing and supply agreements with Zoetis; and (ii) the revenues and expenses of legacy Hospira's One-2-One sterile injectables contract manufacturing operation, which has been included in EH since we acquired Hospira on September 3, 2015. Prior to 2016, PCS was managed outside our operating segments as part of PGS and reported as "Other Business Activities". We have reclassified prior period PCS operating results ($116 million of PCS revenues and $15 million of PCS earnings in the third quarter of 2015, and $360 million of PCS revenues and $66 million of PCS earnings in the first nine months of 2015) to conform to the current period presentation as part of EH. As noted above, also effective as of the beginning of 2016, in connection with the formation of a new EH R&D organization, certain functions transferred from Pfizer’s WRD organization to the new EH R&D organization. We have reclassified approximately $68 million of costs in the third quarter of 2015 and $202 million of costs in the first nine months of 2015 from WRD to EH to conform to the current period presentation as part of EH.

^(d)  Other business activities includes the costs managed by our WRD, GPD and Pfizer Medical organizations.

^(e)  For a description, see the “Other Costs and Business Activities” section above.

^(f)  Certain significant items are substantive and in some cases recurring (such as restructuring or legal charges), or 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 third quarter of 2016, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $375 million, (ii) income for certain legal matters of $40 million, (iii) an impairment charge related to the write-down of the HIS net assets to fair value less estimated costs to sell of $1.4 billion, (iv) certain asset impairment charges of $126 million, (v) charges for business and legal entity alignment of $69 million and (vi) other charges of $17 million. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the third quarter of 2015, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $107 million, (ii) certain asset impairment charges of $633 million, (iii) charges for business and legal entity alignment of $60 million and (iv) other charges of $36 million. For additional information, see Note 3 and Note 4.

For Earnings in the first nine months of2016, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $743 million, (ii) charges for certain legal matters of $506 million, (iii) an impairment charge related to the write-down of the HIS net assets to fair value less estimated costs to sell of $1.4 billion, (iv) certain asset impairment charges of $1.1 billion, (v) charges for business and legal entity alignment of $180 million and (vi) other charges of $189 million. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2015, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $302 million, (ii) certain asset impairment charges of $633 million, (iii) charges for business and legal entity alignment of $224 million, (iv) charges for certain legal matters of $92 million, and (v) other charges of $117 million. For additional information, see Note 3 and Note 4.

Schedule of Revenues by Geographic Region

The following table provides revenues by geographic area(a):
	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		% Change		October 2, 2016		September 27, 2015		% Change
U.S.	$	6,530	$	5,565	17		$	19,561	$	14,993	30
Developed Europe(b)	2,218		2,315		(4	)	6,982		7,006		—
Developed Rest of World(c)	1,711		1,513		13		4,940		4,562		8
Emerging Markets(d)	2,586		2,694		(4	)	7,714		8,243		(6	)
Revenues	$	13,045	$	12,087	8		$	39,196	$	34,804	13

^(a)  On September 3, 2015, we acquired Hospira. Commencing from the acquisition date, our condensed consolidated statement of income includes the operating results of Hospira. As a result, legacy Hospira operations are included in our condensed consolidated statements of income for the third quarter and first nine months of2016. In accordance with our domestic and international reporting periods, our results of operations and EH's operating results for the third quarter and first nine months of2015 reflect only one month of legacy Hospira U.S. operations but no financial results from legacy Hospira international operations. On June 24, 2016, we acquired Anacor. Commencing from the acquisition date, our condensed consolidated statement of income includes the operating results of Anacor. As a result, legacy Anacor operations are included in our condensed consolidated statements of income for the third quarter and first nine months of2016. In accordance with our domestic reporting period, our results of operations and IH's operating results for the third quarter and first nine months of 2016 include approximately three months of legacy Anacor operations. Additionally, on September 28, 2016, we acquired Medivation. Commencing from the acquisition date, our condensed consolidated statement of income includes the operating results of Medivation. As a result, legacy Medivation operations are included in our condensed consolidated statements of income for the third quarter and first nine months of2016. In accordance with our domestic and international reporting periods, our results of operations and IH's operating results for the third quarter and first nine months of 2016 reflect three business days of legacy Medivation operations, which were immaterial. See Note 2A for additional information.

^(b)  Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $1.7 billion and $1.8 billion in the third quarter of 2016 and 2015, respectively, and $5.3 billion and $5.4 billion in the first nine months of2016 and 2015, respectively.

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

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

Schedule of Significant Product Revenues

The following table provides detailed revenue information:
	Three Months Ended				Nine Months Ended
(MILLIONS OF DOLLARS)	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
PFIZER INNOVATIVE HEALTH (IH)(a)	$	7,332	$	6,752	$	21,471	$	19,120
Internal Medicine	$	2,243	$	1,954	$	6,557	$	5,500
Lyrica IH(b)	1,049		947		3,107		2,701
Viagra IH(c)	297		333		897		955
Chantix/Champix	198		159		631		491
Toviaz	60		59		191		193
BMP2	63		57		175		169
Alliance revenues(d)	417		343		1,139		841
All other Internal Medicine(m)	159		56		416		149
Vaccines	$	1,641	$	1,629	$	4,576	$	4,536
Prevnar/Prevenar 13	1,536		1,576		4,302		4,384
FSME/IMMUN-TicoVac	33		28		102		93
All other Vaccines	72		26		172		60
Oncology	$	1,104	$	786	$	3,206	$	2,026
Ibrance	550		230		1,492		408
Sutent	260		279		823		815
Xalkori	140		122		415		353
Inlyta	95		105		304		311
All other Oncology	60		50		172		139
Inflammation & Immunology (I&I)	$	960	$	987	$	2,907	$	2,816
Enbrel (Outside the U.S. and Canada)	701		844		2,201		2,426
Xeljanz	235		127		649		351
All other I&I	24		16		57		40
Rare Disease	$	585	$	579	$	1,768	$	1,776
BeneFIX	176		194		543		561
Genotropin	147		142		425		447
Refacto AF/Xyntha	140		130		408		392
Somavert	59		54		173		158
Rapamune	38		32		131		138
All other Rare Disease	25		27		88		80
Consumer Healthcare	$	798	$	817	$	2,457	$	2,465
PFIZER ESSENTIAL HEALTH (EH)(e)	$	5,712	$	5,335	$	17,725	$	15,683
Legacy Established Products (LEP)(f)	$	2,708	$	2,919	$	8,373	$	8,701
Lipitor	422		454		1,294		1,404
Premarin family	244		263		751		753
Norvasc	238		241		714		744
EpiPen	110		107		300		268
Xalatan/Xalacom	91		98		273		299
Relpax	83		91		248		254
Zoloft	72		95		228		274
Effexor	70		66		207		213
Zithromax/Zmax(g)	56		63		203		203
Xanax/Xanax XR	55		55		163		164
Cardura	49		52		143		158
Neurontin	45		45		136		148
Tikosyn	20		44		136		123
Depo-Provera	36		45		103		133
All other LEP	1,119		1,199		3,473		3,563
Sterile Injectable Pharmaceuticals (SIP)(h)	$	1,461	$	957	$	4,481	$	2,436
Medrol(g)	102		98		330		284
Sulperazon	102		72		304		251
Fragmin	80		84		240		246
Tygacil	69		81		203		231
All other SIP	1,108		621		3,405		1,424

Peri-LOE Products(i)	$	1,023	$	1,229	$	3,224	$	4,073
Lyrica EH(b)	191		273		623		925
Celebrex	194		212		550		640
Pristiq	174		185		546		523
Vfend	140		165		459		510
Zyvox	94		165		334		696
Viagra EH(c)	89		97		286		318
Revatio	73		53		213		181
All Other Peri-LOE Products	68		79		214		280
Infusion Systems(j)	$	281	$	94	$	879	$	94
Biosimilars(k)	$	83	$	—	$	228	$	—
Pfizer CentreOne(l)	$	156	$	136	$	540	$	380
Revenues	$	13,045	$	12,087	$	39,196	$	34,804
Total Lyrica(b)	$	1,240	$	1,220	$	3,730	$	3,626
Total Viagra(c)	$	387	$	430	$	1,183	$	1,274
Total Alliance revenues	$	419	$	349	$	1,155	$	881

^(a)  The IH business, previously known as the Innovative Products business, encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare and includes all legacy Medivation and Anacor commercial operations. Medivation’s and Anacor’s commercial operations are included in IH’s operating results in our condensed consolidated statements of income, commencing from the acquisition date of September 28, 2016 for Medivation and from the acquisition date of June 24, 2016 for Anacor. As a result, IH’s revenues for the third quarter and first nine months of 2016 include three business days of legacy Medivation operations and approximately three months of legacy Anacor operations, which were immaterial.

^(b)  Lyrica revenues from all of Europe, Russia, Turkey, Israel and Central Asia countries are included in Lyrica EH. All other Lyrica revenues are included in Lyrica IH. Total Lyrica revenues represent the aggregate of worldwide revenues from Lyrica IH and Lyrica EH.

^(c)  Viagra revenues from the U.S. and Canada are included in Viagra IH. All other Viagra revenues are included in Viagra EH. Total Viagra revenues represent the aggregate of worldwide revenues from Viagra IH and Viagra EH.

^(d)  Includes Eliquis (2016 and 2015) and Rebif (2015 only).

^(e)  The EH business, previously known as the Established Products business, encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, Infusion Systems, Biosimilars and Pfizer CentreOne and includes all legacy Hospira commercial operations. Hospira's commercial operations, including the legacy Hospira One-2-One sterile injectables contract manufacturing business, are included in EH’s operating results in our condensed consolidated statements of income, commencing from the acquisition date of September 3, 2015. Therefore, in accordance with our domestic and international reporting periods, our results of operations and EH's operating results for the third quarter and first nine months of2015 reflect only one month of legacy Hospira U.S. operations but no financial results from legacy Hospira international operations. Also, effective as of the beginning of 2016, our entire contract manufacturing business, Pfizer CentreOne (previously known as Pfizer CentreSource or PCS), is part of EH. Pfizer CentreOne consists of (i) legacy Pfizer's contract manufacturing and active pharmaceutical ingredient sales operation, including our manufacturing and supply agreements with Zoetis; and (ii) legacy Hospira's One-2-One sterile injectables contract manufacturing operation. Prior to 2016, PCS was managed outside our operating segments and its revenues were reported as other business activities. We have reclassified prior period PCS revenues ($116 million in the third quarter of 2015 and $360 million in the first nine months of2015) to conform to the current period presentation as part of EH.

^(f)  Legacy Established Products include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products).

^(g)  Prior period revenues for Medrol and Zithromax/Zmax may not agree to previously-disclosed revenues because revenues for those products are now split between the Legacy Established Products and the Sterile Injectable Pharmaceuticals categories.

^(h)  Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products).

⁽ⁱ⁾ Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products primarily include Lyrica in certain developed Europe markets, Pristiq globally, Celebrex, Zyvox and Revatio in most developed markets, Vfend and Viagra in certain developed Europe markets and Japan, and Inspra in the EU.

^(j)  Infusion Systems include Medication Management Systems products composed of infusion pumps and related software and services, as well as IV Infusion Products, including large volume IV solutions and their associated administration sets.

^(k)  Biosimilars include Inflectra (biosimilar infliximab) in certain European markets, Nivestim (biosimilar filgrastim) in certain Asian markets and Retacrit (biosimilar epoetin zeta) in certain international markets.

^(l)  Pfizer CentreOne (previously known as Pfizer CentreSource or PCS) includes (i) revenues from legacy Pfizer's contract manufacturing and active pharmaceutical ingredient sales operation, including revenues related to our manufacturing and supply agreements with Zoetis; and (ii) revenues from legacy Hospira’s One-2-One sterile injectables contract manufacturing operation.

^(m)  Includes Eliquis direct sales markets.