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Segment, Geographic and Other Revenue Information (Tables)
 9 Months Ended
Oct. 01, 2017
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 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

Reportable Segments:
 
 
 
 
 
 
 
 
IH
 
$
8,118

 
$
7,332

 
$
4,875

 
$
4,187

EH
 
5,050

 
5,712

 
2,765

 
3,128

Total reportable segments
 
13,168

 
13,045

 
7,640

 
7,315

Other business activities(b), (c)
 
—

 
—

 
(759
)
 
(753
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate(c)
 
—

 
—

 
(1,382
)
 
(1,537
)
Purchase accounting adjustments(c)
 
—

 
—

 
(1,154
)
 
(966
)
Acquisition-related costs(c)
 
—

 
—

 
(155
)
 
(280
)
Certain significant items(d)
 
—

 
—

 
(449
)
 
(1,969
)
Other unallocated
 
—

 
—

 
(156
)
 
(206
)
 
 
$
13,168

 
$
13,045


$
3,585

 
$
1,604

 
 
 
Nine Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
October 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

Reportable Segments:
 
 
 
 
 
 
 
 
IH
 
$
23,204

 
$
21,471

 
$
14,190

 
$
12,470

EH
 
15,639

 
17,725

 
8,558

 
9,985

Total reportable segments
 
38,843

 
39,196

 
22,748

 
22,454

Other business activities(b), (c)
 
—

 
—

 
(2,205
)
 
(2,096
)
Reconciling Items:
 
 
 
 
 
 
 
 
Corporate(c)
 
—

 
—

 
(3,948
)
 
(4,217
)
Purchase accounting adjustments(c)
 
—

 
—

 
(3,527
)
 
(3,103
)
Acquisition-related costs(c)
 
—

 
—

 
(347
)
 
(598
)
Certain significant items(d)
 
—

 
—

 
(797
)
 
(4,112
)
Other unallocated
 
—

 
—

 
(573
)
 
(753
)
 
 
$
38,843

 
$
39,196

 
$
11,351

 
$
7,575

(a) 
Income from continuing operations before provision for taxes on income. IH’s earnings in the third quarter and first nine months of 2017 include dividend income of $54 million and $211 million, respectively, from our investment in ViiV. For additional information, see Note 4.
(b) 
Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017, Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $33 million and $94 million of costs from Other Business Activities to Corporate in the third quarter and first nine months of 2016, respectively, to conform to the current period presentation.
(c) 
For a description, see the “Other Costs and Business Activities” section above.
(d) 
Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) 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 2017, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $90 million, (ii) charges for certain legal matters of $183 million, (iii) income of $12 million, representing an adjustment to amounts previously recorded to write down the HIS net assets to fair value less costs to sell, (iv) certain asset impairment charges of $127 million, (v) charges for business and legal entity alignment of $16 million and (vi) other charges of $45 million. For additional information, see Note 2B, Note 3 and Note 4.
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 3 and Note 4.
For Earnings in the first nine months of 2017, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $253 million, (ii) charges for certain legal matters of $191 million, (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $52 million, (iv) certain asset impairment charges of $127 million, (v) charges for business and legal entity alignment of $54 million and (vi) other charges of $119 million. For additional information, see Note 2B, Note 3 and Note 4.
For Earnings in the first nine months 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 $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 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 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

Reportable Segments:
 
 
 
 
 
 
 
 
IH
 
$
8,118

 
$
7,332

 
$
4,875

 
$
4,187

EH
 
5,050

 
5,712

 
2,765

 
3,128

Total reportable segments
 
13,168

 
13,045

 
7,640

 
7,315

Other business activities(b), (c)
 
—

 
—

 
(759
)
 
(753
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate(c)
 
—

 
—

 
(1,382
)
 
(1,537
)
Purchase accounting adjustments(c)
 
—

 
—

 
(1,154
)
 
(966
)
Acquisition-related costs(c)
 
—

 
—

 
(155
)
 
(280
)
Certain significant items(d)
 
—

 
—

 
(449
)
 
(1,969
)
Other unallocated
 
—

 
—

 
(156
)
 
(206
)
 
 
$
13,168

 
$
13,045


$
3,585

 
$
1,604

 
 
 
Nine Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
October 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

Reportable Segments:
 
 
 
 
 
 
 
 
IH
 
$
23,204

 
$
21,471

 
$
14,190

 
$
12,470

EH
 
15,639

 
17,725

 
8,558

 
9,985

Total reportable segments
 
38,843

 
39,196

 
22,748

 
22,454

Other business activities(b), (c)
 
—

 
—

 
(2,205
)
 
(2,096
)
Reconciling Items:
 
 
 
 
 
 
 
 
Corporate(c)
 
—

 
—

 
(3,948
)
 
(4,217
)
Purchase accounting adjustments(c)
 
—

 
—

 
(3,527
)
 
(3,103
)
Acquisition-related costs(c)
 
—

 
—

 
(347
)
 
(598
)
Certain significant items(d)
 
—

 
—

 
(797
)
 
(4,112
)
Other unallocated
 
—

 
—

 
(573
)
 
(753
)
 
 
$
38,843

 
$
39,196

 
$
11,351

 
$
7,575

(a) 
Income from continuing operations before provision for taxes on income. IH’s earnings in the third quarter and first nine months of 2017 include dividend income of $54 million and $211 million, respectively, from our investment in ViiV. For additional information, see Note 4.
(b) 
Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017, Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $33 million and $94 million of costs from Other Business Activities to Corporate in the third quarter and first nine months of 2016, respectively, to conform to the current period presentation.
(c) 
For a description, see the “Other Costs and Business Activities” section above.
(d) 
Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) 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 2017, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $90 million, (ii) charges for certain legal matters of $183 million, (iii) income of $12 million, representing an adjustment to amounts previously recorded to write down the HIS net assets to fair value less costs to sell, (iv) certain asset impairment charges of $127 million, (v) charges for business and legal entity alignment of $16 million and (vi) other charges of $45 million. For additional information, see Note 2B, Note 3 and Note 4.
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 3 and Note 4.
For Earnings in the first nine months of 2017, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $253 million, (ii) charges for certain legal matters of $191 million, (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $52 million, (iv) certain asset impairment charges of $127 million, (v) charges for business and legal entity alignment of $54 million and (vi) other charges of $119 million. For additional information, see Note 2B, Note 3 and Note 4.
For Earnings in the first nine months 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 $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 3 and Note 4.
Schedule of Revenues by Geographic Region
The following table provides revenues by geographic area:
 
 
Three Months Ended
 
Nine Months Ended
(MILLIONS OF DOLLARS)
 
October 1,
2017

 
October 2,
2016

 
%
Change

 
October 1,
2017

 
October 2,
2016

 
%
Change

U.S.
 
$
6,534

 
$
6,530

 
—

 
$
19,516

 
$
19,561

 
—

Developed Europe(a)
 
2,163

 
2,218

 
(2
)
 
6,309

 
6,982

 
(10
)
Developed Rest of World(b)
 
1,632

 
1,711

 
(5
)
 
4,797

 
4,940

 
(3
)
Emerging Markets(c)
 
2,839

 
2,586

 
10

 
8,222

 
7,714

 
7

Revenues
 
$
13,168

 
$
13,045

 
1

 
$
38,843

 
$
39,196

 
(1
)
(a) 
Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion in both the third quarter of 2017 and 2016, and $5.0 billion and $5.3 billion in the first nine months of 2017 and 2016, respectively.
(b) 
Developed Rest of World region includes the following markets: Japan, Canada, Australia, South Korea and New Zealand.
(c) 
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 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

PFIZER INNOVATIVE HEALTH (IH)(a)
 
$
8,118

 
$
7,332

 
$
23,204

 
$
21,471

Internal Medicine
 
$
2,455

 
$
2,243

 
$
7,245

 
$
6,557

Lyrica IH(b)
 
1,150

 
1,049

 
3,382

 
3,107

Eliquis alliance revenues and direct sales
 
644

 
449

 
1,813

 
1,225

Chantix/Champix
 
240

 
198

 
727

 
631

Viagra IH(c)
 
206

 
297

 
711

 
897

BMP2
 
79

 
63

 
198

 
175

Toviaz
 
62

 
60

 
187

 
191

All other Internal Medicine
 
75

 
128

 
228

 
330

Vaccines
 
$
1,649

 
$
1,641

 
$
4,385

 
$
4,576

Prevnar 13/Prevenar 13
 
1,522

 
1,536

 
4,069

 
4,302

FSME/IMMUN-TicoVac
 
43

 
33

 
119

 
102

All other Vaccines
 
85

 
72

 
197

 
172

Oncology
 
$
1,616

 
$
1,104

 
$
4,551

 
$
3,206

Ibrance
 
878

 
550

 
2,410

 
1,492

Sutent
 
276

 
260

 
805

 
823

Xalkori
 
146

 
140

 
442

 
415

Xtandi alliance revenues
 
150

 
2

 
422

 
2

Inlyta
 
84

 
95

 
256

 
304

Bosulif
 
57

 
43

 
163

 
121

All other Oncology
 
26

 
15

 
54

 
49

Inflammation & Immunology (I&I)
 
$
1,000

 
$
960

 
$
2,863

 
$
2,907

Enbrel (Outside the U.S. and Canada)
 
613

 
701

 
1,818

 
2,201

Xeljanz
 
348

 
235

 
935

 
649

Eucrisa

15


—


33


—

All other I&I
 
23

 
24

 
78

 
57

Rare Disease
 
$
569

 
$
585

 
$
1,637

 
$
1,768

BeneFIX
 
151

 
176

 
453

 
543

Refacto AF/Xyntha
 
140

 
140

 
409

 
408

Genotropin
 
136

 
147

 
375

 
425

Somavert
 
65

 
59

 
182

 
173

All other Rare Disease
 
77

 
64

 
218

 
219

Consumer Healthcare
 
$
829

 
$
798

 
$
2,522

 
$
2,457

PFIZER ESSENTIAL HEALTH (EH)(d)
 
$
5,050

 
$
5,712

 
$
15,639

 
$
17,725

Legacy Established Products (LEP)(e)
 
$
2,681

 
$
2,708

 
$
7,995

 
$
8,373

Lipitor
 
491

 
422

 
1,341

 
1,294

Premarin family
 
238

 
244

 
711

 
751

Norvasc
 
226

 
238

 
684

 
714

EpiPen
 
82

 
110

 
253

 
300

Xalatan/Xalacom
 
83

 
91

 
241

 
273

Effexor
 
76

 
70

 
215

 
207

Zoloft
 
78

 
72

 
215

 
228

Zithromax
 
61

 
56

 
202

 
203

Relpax
 
50

 
83

 
193

 
248

Xanax
 
58

 
55

 
164

 
163

All other LEP
 
1,237

 
1,268

 
3,776

 
3,992

Sterile Injectable Pharmaceuticals (SIP)(f)
 
$
1,273

 
$
1,461

 
$
4,270

 
$
4,481

Medrol
 
109

 
102

 
352

 
330

Sulperazon
 
114

 
102

 
345

 
304

Fragmin
 
79

 
80

 
221

 
240

Tygacil
 
60

 
69

 
192

 
203

Precedex
 
51

 
64

 
182

 
199

All other SIP
 
860

 
1,044

 
2,977

 
3,206

 
 
Three Months Ended
 
Nine Months Ended
(MILLIONS OF DOLLARS)
 
October 1,
2017

 
October 2,
2016

 
October 1,
2017

 
October 2,
2016

Peri-LOE Products(g)
 
$
794

 
$
1,023

 
$
2,398

 
$
3,224

Celebrex
 
212

 
194

 
564

 
550

Lyrica EH(b)
 
134

 
191

 
428

 
623

Vfend
 
97

 
140

 
305

 
459

Viagra EH(c)
 
102

 
89

 
285

 
286

Pristiq
 
69

 
174

 
230

 
546

Zyvox
 
68

 
94

 
220

 
334

Revatio
 
58

 
73

 
189

 
213

All other Peri-LOE Products
 
55

 
68

 
176

 
214

Biosimilars(h)
 
$
141

 
$
83

 
$
367

 
$
228

Inflectra/Remsima
 
112

 
49

 
284

 
130

All other Biosimilars
 
28

 
34

 
82

 
97

Pfizer CentreOne(i)
 
$
161

 
$
156

 
$
514

 
$
540

Hospira Infusion Systems (HIS)(j)
 
$
—

 
$
281

 
$
97

 
$
879

Revenues
 
$
13,168

 
$
13,045

 
$
38,843

 
$
39,196

 
 
 
 
 
 
 
 
 
Total Lyrica(b)
 
$
1,285

 
$
1,240

 
$
3,810

 
$
3,730

Total Viagra(c)
 
$
308

 
$
387

 
$
996

 
$
1,183

Total Alliance revenues
 
$
741

 
$
419

 
$
2,112

 
$
1,155


(a) 
The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare. Through December 31, 2016, includes Duavive/Duavee and Viviant (recorded in All other Internal Medicine in 2016), which were transferred from Innovative Health to Essential Health effective January 1, 2017 (recorded in All other LEP (EH) beginning January 1, 2017), in order to align these products with our management of the women’s health portfolio within EH.
(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) 
The EH business encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, Biosimilars, Pfizer CentreOne and HIS (through February 2, 2017) and includes all legacy Hospira commercial operations.
(e) 
Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). Effective January 1, 2017, All other LEP includes Duavive/Duavee and Viviant, which were transferred from Innovative Health (recorded in All other Internal Medicine (IH) in 2016), in order to align these products with our management of the women’s health portfolio within EH. See note (a) above.
(f)  
Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products).
(g) 
Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; Viagra in all countries (excluding the U.S. and Canada); and worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra.
(h) 
Biosimilars include Inflectra/Remsima (biosimilar infliximab) in the U.S. and certain international markets, Nivestim (biosimilar filgrastim) in certain European, Asian and Africa/Middle Eastern markets and Retacrit (biosimilar epoetin zeta) in certain European and Africa/Middle Eastern markets.
(i) 
Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements, including with Zoetis.
(j) 
HIS (through February 2, 2017) includes 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.