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Segment, Geographic and Other Revenue Information (Tables)
 3 Months Ended
Apr. 01, 2018
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)
 
April 1,
2018

 
April 2,
2017

 
April 1,
2018

 
April 2,
2017

Reportable Segments:
 
 
 
 
 
 
 
 
IH(b)
 
$
7,829

 
$
7,415

 
$
4,930

 
$
4,747

EH(b)
 
5,077

 
5,364

 
2,788

 
3,039

Total reportable segments
 
12,906

 
12,779

 
7,719

 
7,787

Other business activities(c), (d)
 
—

 
—

 
(725
)
 
(688
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate(b), (d)
 
—

 
—

 
(1,153
)
 
(1,335
)
Purchase accounting adjustments(d)
 
—

 
—

 
(1,221
)
 
(1,172
)
Acquisition-related costs(d)
 
—

 
—

 
(48
)
 
(124
)
Certain significant items(e)
 
—

 
—

 
(201
)
 
(157
)
Other unallocated(b)
 
—

 
—

 
(244
)
 
(359
)
 
 
$
12,906

 
$
12,779


$
4,127

 
$
3,951

(a) 
Income from continuing operations before provision for taxes on income. IH’s earnings in the first quarter of 2018 and 2017 include dividend income of $59 million and $43 million, respectively, from our investment in ViiV. For additional information, see Note 4.
(b) 
In connection with the StratCO reporting change, in the first quarter of 2017 we reclassified approximately $98 million of costs from IH, approximately $33 million of costs from EH and approximately $9 million of costs from Corporate to Other unallocated costs to conform to the current period presentation.
(c) 
Other business activities includes the costs managed by our WRD and GPD organizations.
(d) 
For a description, see the “Other Costs and Business Activities” section above.
(e) 
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 first quarter of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $51 million, (ii) income for certain legal matters of $19 million, (iii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $3 million, (iv) charges for business and legal entity alignment of $3 million and (v) other charges of $163 million, which primarily includes $108 million, in the aggregate, for a special one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA on us. For additional information, see Note 2B, Note 3, Note 4 and Note 5.
For Earnings in the first quarter of 2017, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $30 million, (ii) charges for certain legal matters of $8 million, (iii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $37 million, (iv) charges for business and legal entity alignment of $21 million and (v) other charges of $61 million. For additional information, see Note 2B, 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)
 
April 1,
2018

 
April 2,
2017

 
April 1,
2018

 
April 2,
2017

Reportable Segments:
 
 
 
 
 
 
 
 
IH(b)
 
$
7,829

 
$
7,415

 
$
4,930

 
$
4,747

EH(b)
 
5,077

 
5,364

 
2,788

 
3,039

Total reportable segments
 
12,906

 
12,779

 
7,719

 
7,787

Other business activities(c), (d)
 
—

 
—

 
(725
)
 
(688
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate(b), (d)
 
—

 
—

 
(1,153
)
 
(1,335
)
Purchase accounting adjustments(d)
 
—

 
—

 
(1,221
)
 
(1,172
)
Acquisition-related costs(d)
 
—

 
—

 
(48
)
 
(124
)
Certain significant items(e)
 
—

 
—

 
(201
)
 
(157
)
Other unallocated(b)
 
—

 
—

 
(244
)
 
(359
)
 
 
$
12,906

 
$
12,779


$
4,127

 
$
3,951

(a) 
Income from continuing operations before provision for taxes on income. IH’s earnings in the first quarter of 2018 and 2017 include dividend income of $59 million and $43 million, respectively, from our investment in ViiV. For additional information, see Note 4.
(b) 
In connection with the StratCO reporting change, in the first quarter of 2017 we reclassified approximately $98 million of costs from IH, approximately $33 million of costs from EH and approximately $9 million of costs from Corporate to Other unallocated costs to conform to the current period presentation.
(c) 
Other business activities includes the costs managed by our WRD and GPD organizations.
(d) 
For a description, see the “Other Costs and Business Activities” section above.
(e) 
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 first quarter of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $51 million, (ii) income for certain legal matters of $19 million, (iii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $3 million, (iv) charges for business and legal entity alignment of $3 million and (v) other charges of $163 million, which primarily includes $108 million, in the aggregate, for a special one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA on us. For additional information, see Note 2B, Note 3, Note 4 and Note 5.
For Earnings in the first quarter of 2017, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $30 million, (ii) charges for certain legal matters of $8 million, (iii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $37 million, (iv) charges for business and legal entity alignment of $21 million and (v) other charges of $61 million. For additional information, see Note 2B, Note 3 and Note 4.
Schedule of Revenues by Geographic Region
The following table provides revenues by geographic area:
 

Three Months Ended
(MILLIONS OF DOLLARS)

April 1,
2018


April 2,
2017


%
Change

U.S.

$
6,275


$
6,637


(5
)
Developed Europe(a)

2,092


2,021


4

Developed Rest of World(b)

1,461


1,554


(6
)
Emerging Markets(c)

3,078


2,567


20

Revenues

$
12,906


$
12,779


1

(a) 
Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion and $1.6 billion in the first quarter of 2018 and 2017, 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, Eastern Europe, Africa, the Middle East, Central Europe and Turkey.
Schedule of Significant Product Revenues
The following table provides detailed revenue information:
(MILLIONS OF DOLLARS)
 
 
 
Three Months Ended
PRODUCT
 
PRIMARY INDICATIONS OR CLASS
 
April 1,
2018

 
April 2,
2017

TOTAL REVENUES
 
 
 
$
12,906

 
$
12,779

PFIZER INNOVATIVE HEALTH (IH)(a)
 
$
7,829

 
$
7,415

Internal Medicine
 
 
 
$
2,347

 
$
2,377

Lyrica IH(b)
 
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury
 
1,131

 
1,131

Eliquis alliance revenues and direct sales
 
Atrial fibrillation, deep vein thrombosis, pulmonary embolism
 
765

 
564

Chantix/Champix
 
An aid to smoking cessation treatment in adults 18 years of age or older
 
251

 
239

BMP2
 
Development of bone and cartilage
 
73

 
62

Toviaz
 
Overactive bladder
 
60

 
63

Viagra IH(c)
 
Erectile dysfunction
 
—

 
249

All other Internal Medicine
 
Various
 
66

 
69

Vaccines
 
 
 
$
1,463

 
$
1,465

Prevnar 13/Prevenar 13
 
Vaccines for prevention of pneumococcal disease
 
1,380

 
1,392

All other Vaccines
 
Various
 
83

 
73

Oncology
 
 
 
$
1,697

 
$
1,347

Ibrance
 
Advanced breast cancer
 
933

 
679

Sutent
 
Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor
 
262

 
250

Xtandi alliance revenues
 
Advanced prostate cancer
 
159

 
131

Xalkori
 
ALK-positive and ROS1-positive advanced NSCLC
 
153

 
142

Inlyta
 
Advanced RCC
 
74

 
85

Bosulif
 
Philadelphia chromosome–positive chronic myelogenous leukemia
 
60

 
47

All other Oncology
 
Various
 
57

 
14

Inflammation & Immunology (I&I)
 
 
 
$
869

 
$
871

Enbrel (Outside the U.S. and Canada)
 
Rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
 
506

 
588

Xeljanz
 
Rheumatoid arthritis; psoriatic arthritis
 
326

 
250

Eucrisa

Mild-to-moderate atopic dermatitis (eczema)
 
26

 
9

All other I&I
 
Various
 
11

 
24

Rare Disease
 
 
 
$
549

 
$
507

BeneFIX
 
Hemophilia
 
147

 
149

Genotropin
 
Replacement of human growth hormone
 
132

 
104

Refacto AF/Xyntha
 
Hemophilia
 
130

 
130

Somavert
 
Acromegaly
 
63

 
56

All other Rare Disease
 
Various
 
76

 
67

Consumer Healthcare
 
 
 
$
905

 
$
848

PFIZER ESSENTIAL HEALTH (EH)(d)
 
 
 
$
5,077

 
$
5,364

Legacy Established Products (LEP)(e)
 
 
 
$
2,636

 
$
2,606

Lipitor
 
Reduction of LDL cholesterol
 
511

 
404

Norvasc
 
Hypertension
 
254

 
228

Premarin family
 
Symptoms of menopause
 
191

 
228

Zithromax
 
Bacterial infections
 
90

 
79

Zoloft
 
Depression and certain anxiety disorders
 
74

 
68

Xalatan/Xalacom
 
Glaucoma and ocular hypertension
 
72

 
77

Effexor
 
Depression and certain anxiety disorders
 
71

 
66

Sildenafil Citrate
 
Erectile dysfunction
 
62

 
—

Xanax
 
Anxiety disorders
 
54

 
55

EpiPen
 
Epinephrine injection used in treatment of life-threatening allergic reactions
 
52

 
81

All other LEP
 
Various
 
1,203

 
1,321

(MILLIONS OF DOLLARS)
 
 
 
Three Months Ended
PRODUCT
 
PRIMARY INDICATIONS OR CLASS
 
April 1,
2018

 
April 2,
2017

Sterile Injectable Pharmaceuticals (SIP)(f)
 
$
1,360

 
$
1,552

Sulperazon
 
Treatment of infections
 
168

 
122

Medrol
 
Steroid anti-inflammatory
 
120

 
120

Fragmin
 
Slows blood clotting
 
70

 
71

Tygacil
 
Tetracycline class antibiotic
 
63

 
74

Zosyn/Tazocin
 
Antibiotic
 
61

 
37

Precedex
 
Sedation agent in surgery or intensive care
 
55

 
64

All other SIP
 
Various
 
823

 
1,063

Peri-LOE Products(g)
 
 
 
$
737

 
$
822

Viagra EH(c)
 
Erectile dysfunction
 
187

 
89

Celebrex
 
Arthritis pain and inflammation, acute pain
 
145

 
175

Vfend
 
Fungal infections
 
98

 
107

Lyrica EH(b)
 
Epilepsy, neuropathic pain and generalized anxiety disorder
 
82

 
141

Zyvox
 
Bacterial infections
 
68

 
77

Revatio
 
Pulmonary arterial hypertension
 
56

 
65

Pristiq
 
Depression
 
53

 
116

All other Peri-LOE Products
 
Various
 
49

 
53

Biosimilars(h)
 
Various
 
$
173

 
$
105

Inflectra/Remsima
 
Inflammatory diseases
 
145

 
78

All other Biosimilars
 
Various
 
29

 
27

Pfizer CentreOne(i)
 
 
 
$
171

 
$
182

Hospira Infusion Systems (HIS)(j)
 
Various
 
$
—

 
$
97

Total Lyrica(b)
 
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury
 
$
1,213

 
$
1,271

Total Viagra(c)
 
Erectile dysfunction
 
$
187

 
$
339

Total Alliance revenues
 
Various
 
$
855

 
$
656


(a) 
The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare.
(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 lost exclusivity in the U.S. in December 2017. Beginning in 2018, revenues for Viagra in the U.S. and Canada, which were reported in IH through 2017, are reported in EH (which reported all other Viagra revenues excluding the U.S. and Canada through 2017). Therefore, total Viagra revenues in 2018 are reported in EH. Total Viagra revenues in 2017 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).
(e) 
Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within All Other LEP and All Other SIP, are reported in emerging markets within Pfizer CentreOne.
(f)  
Sterile Injectable Pharmaceuticals includes branded and generic injectables (excluding Peri-LOE Products). In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previous reported in emerging markets within All Other LEP and All Other SIP, are reported in emerging markets within Pfizer CentreOne.
(g) 
Peri-LOE Products includes products that have recently lost or are anticipated to soon lose patent protection. These products primarily include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra; and beginning in 2018, Viagra revenues for all countries (and Viagra revenues for all countries other than the U.S. and Canada in 2017, see note (c) above).
(h) 
Biosimilars includes 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 Inc. In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in first-quarter 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within All Other LEP and All Other SIP, are reported in emerging markets within Pfizer CentreOne.
(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.