[1]

Amounts may not add due to rounding.

[2]

Income from continuing operations before provision for taxes on income. IH’s earnings include dividend income of $76 million and $114 million in the second quarter of 2018 and 2017, respectively, and $135 million and $157 million in the first six months of 2018 and 2017, respectively, from our investment in ViiV. For additional information, see Note 4.

[3]

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

[4]

Other business activities includes the costs managed by our WRD and GPD organizations.

[5]

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 second 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 $42 million, (ii) a net credit for certain legal matters of $88 million, (iii) adjustments of $2 million income to amounts previously recorded to write down the HIS net assets to fair value less costs to sell, (iv) certain asset impairments of $31 million, (v) charges for business and legal entity alignment of $1 million and (vi) other charges of $37 million. For additional information, see Note 2B, Note 3 and Note 4.For Earnings in the second 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 $49 million, (ii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $28 million, (iii) charges for business and legal entity alignment of $17 million and (iv) other charges of $97 million. For additional information, see Note 2B, Note 3 and Note 4.For Earnings in the first six months 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 $93 million, (ii) net credits for certain legal matters of $107 million, (iii) adjustments to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $1 million, (iv) certain asset impairments of $31 million, (v) charges for business and legal entity alignment of $4 million and (vi) other charges of $199 million, which primarily includes $119 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 and Note 4.For Earnings in the first six months 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 $79 million, (ii) charges for certain legal matters of $8 million, (iii) adjustments to amounts previously recorded to the write-down the HIS net assets to fair value less costs to sell of $64 million, (iv) charges for business and legal entity alignment of $38 million and (v) other charges of $158 million. For additional information, see Note 2B, Note 3 and Note 4.

[6]

In connection with the StratCO reporting change, in the second quarter of 2017 we reclassified approximately $120 million of costs from IH, approximately $45 million of costs from EH and approximately $12 million of costs from Corporate to Other unallocated costs to conform to the current period presentation. In the first six months of 2017, we reclassified approximately $218 million of costs from IH, approximately $78 million of costs from EH and approximately $21 million of costs from Corporate to Other unallocated costs to conform to the current period presentation.