Segment, Geographic and Other Revenue Information (Tables)

9 Months Ended

Sep. 30, 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)	September 30, 2018		October 1, 2017		September 30, 2018			October 1, 2017
Reportable Segments:
IH(b)	$	8,471	$	8,118	$	5,388		$	5,000
EH(b)	4,826		5,050		2,527			2,801
Total reportable segments	13,298		13,168		7,915			7,801
Other business activities(c), (d)	—		—		(736		)	(759		)
Reconciling Items:
Corporate(b), (d)	—		—		(1,337		)	(1,363		)
Purchase accounting adjustments(d)	—		—		(1,309		)	(1,154		)
Acquisition-related costs(d)	—		—		(112		)	(155		)
Certain significant items(e)	—		—		213			(449		)
Other unallocated(b), (d)	—		—		(457		)	(335		)
	$	13,298	$	13,168	$	4,177		$	3,585
	Nine Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	September 30, 2018		October 1, 2017		September 30, 2018			October 1, 2017
Reportable Segments:
IH(b)	$	24,573	$	23,204	$	15,419		$	14,534
EH(b)	15,097		15,639		8,133			8,672
Total reportable segments	39,670		38,843		23,552			23,206
Other business activities(c), (d)	—		—		(2,130		)	(2,205		)
Reconciling Items:
Corporate(b), (d)	—		—		(3,633		)	(3,908		)
Purchase accounting adjustments(d)	—		—		(3,665		)	(3,527		)
Acquisition-related costs(d)	—		—		(221		)	(347		)
Certain significant items(e)	—		—		(8		)	(797		)
Other unallocated(b), (d)	—		—		(1,064		)	(1,070		)
	$	39,670	$	38,843	$	12,831		$	11,351

^(a)  Income from continuing operations before provision for taxes on income. IH’s earnings include dividend income of $91 million and $54 million in the third quarter of 2018 and 2017, respectively, and $226 million and $211 million in the first nine months of2018 and 2017, respectively, from our investment in ViiV. For additional information, see Note 4.

^(b)  In connection with the StratCO reporting change, in the third quarter of 2017, we reclassified approximately $125 million of costs from IH, approximately $36 million of costs from EH and approximately $19 million of costs from Corporate to Other unallocated costs to conform to the current period presentation. In the first nine months of 2017, we reclassified approximately $344 million of costs from IH, approximately $114 million of costs from EH and approximately $40 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 third 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$35 million, (ii) net charges for certain legal matters of$37 million, (iii) income of$2 million, representing an adjustment to amounts previously recorded to write down the HIS net assets to fair value less costs to sell and (iv) other income of $282 million, which includes, among other things, a non-cash $343 million pre-tax gain in Other (income)/deductions––net associated with our transaction with Bain Capital to create a new biopharmaceutical company, Cerevel, to continue development of a portfolio of clinical and preclinical stage neuroscience assets primarily targeting disorders of the central nervous system. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the third 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 $55 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 $81 million, which includes, among other things, $55 million in inventory losses, overhead costs related to the period in which our Puerto Rico plants were not operational, and incremental costs, all of which resulted from hurricanes in Puerto Rico and are included in Cost of sales. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $127 million, (ii) net credits for certain legal matters of $70 million, (iii) income of $1 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 $31 million, (v) charges for business and legal entity alignment of $4 million and (vi) other income of $84 million, which includes, among other things, a non-cash $343 million pre-tax gain in Other (income)/deductions––net associated with our transaction with Bain Capital to create a new biopharmaceutical company, Cerevel, to continue development of a portfolio of clinical and preclinical stage neuroscience assets primarily targeting disorders of the central nervous system, a $119 million charge, in the aggregate, in Selling, information and administrative expenses, 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, and a $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic chimeric antigen receptor T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2017, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $133 million, (ii) charges for certain legal matters of $191 million, (iii) charges of $52 million, representing adjustments 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 $54 million and (v) other charges of $239 million, which include, among other things, $55 million in inventory losses, overhead costs related to the period in which our Puerto Rico plants were not operational, and incremental costs, all of which resulted from hurricanes in Puerto Rico and are included in Cost of sales, and a net loss of $30 million related to the sale of our 40% ownership investment in Teuto, including the extinguishment of a put option for the then remaining 60% ownership interest, which is included in Other (income)/deductions––net. 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)	September 30, 2018		October 1, 2017		September 30, 2018			October 1, 2017
Reportable Segments:
IH(b)	$	8,471	$	8,118	$	5,388		$	5,000
EH(b)	4,826		5,050		2,527			2,801
Total reportable segments	13,298		13,168		7,915			7,801
Other business activities(c), (d)	—		—		(736		)	(759		)
Reconciling Items:
Corporate(b), (d)	—		—		(1,337		)	(1,363		)
Purchase accounting adjustments(d)	—		—		(1,309		)	(1,154		)
Acquisition-related costs(d)	—		—		(112		)	(155		)
Certain significant items(e)	—		—		213			(449		)
Other unallocated(b), (d)	—		—		(457		)	(335		)
	$	13,298	$	13,168	$	4,177		$	3,585
	Nine Months Ended
	Revenues				Earnings(a)
(MILLIONS OF DOLLARS)	September 30, 2018		October 1, 2017		September 30, 2018			October 1, 2017
Reportable Segments:
IH(b)	$	24,573	$	23,204	$	15,419		$	14,534
EH(b)	15,097		15,639		8,133			8,672
Total reportable segments	39,670		38,843		23,552			23,206
Other business activities(c), (d)	—		—		(2,130		)	(2,205		)
Reconciling Items:
Corporate(b), (d)	—		—		(3,633		)	(3,908		)
Purchase accounting adjustments(d)	—		—		(3,665		)	(3,527		)
Acquisition-related costs(d)	—		—		(221		)	(347		)
Certain significant items(e)	—		—		(8		)	(797		)
Other unallocated(b), (d)	—		—		(1,064		)	(1,070		)
	$	39,670	$	38,843	$	12,831		$	11,351

^(a)  Income from continuing operations before provision for taxes on income. IH’s earnings include dividend income of $91 million and $54 million in the third quarter of 2018 and 2017, respectively, and $226 million and $211 million in the first nine months of2018 and 2017, respectively, from our investment in ViiV. For additional information, see Note 4.

^(b)  In connection with the StratCO reporting change, in the third quarter of 2017, we reclassified approximately $125 million of costs from IH, approximately $36 million of costs from EH and approximately $19 million of costs from Corporate to Other unallocated costs to conform to the current period presentation. In the first nine months of 2017, we reclassified approximately $344 million of costs from IH, approximately $114 million of costs from EH and approximately $40 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 third 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$35 million, (ii) net charges for certain legal matters of$37 million, (iii) income of$2 million, representing an adjustment to amounts previously recorded to write down the HIS net assets to fair value less costs to sell and (iv) other income of $282 million, which includes, among other things, a non-cash $343 million pre-tax gain in Other (income)/deductions––net associated with our transaction with Bain Capital to create a new biopharmaceutical company, Cerevel, to continue development of a portfolio of clinical and preclinical stage neuroscience assets primarily targeting disorders of the central nervous system. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the third 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 $55 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 $81 million, which includes, among other things, $55 million in inventory losses, overhead costs related to the period in which our Puerto Rico plants were not operational, and incremental costs, all of which resulted from hurricanes in Puerto Rico and are included in Cost of sales. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $127 million, (ii) net credits for certain legal matters of $70 million, (iii) income of $1 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 $31 million, (v) charges for business and legal entity alignment of $4 million and (vi) other income of $84 million, which includes, among other things, a non-cash $343 million pre-tax gain in Other (income)/deductions––net associated with our transaction with Bain Capital to create a new biopharmaceutical company, Cerevel, to continue development of a portfolio of clinical and preclinical stage neuroscience assets primarily targeting disorders of the central nervous system, a $119 million charge, in the aggregate, in Selling, information and administrative expenses, 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, and a $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic chimeric antigen receptor T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 2B, Note 3 and Note 4.

For Earnings in the first nine months of2017, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $133 million, (ii) charges for certain legal matters of $191 million, (iii) charges of $52 million, representing adjustments 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 $54 million and (v) other charges of $239 million, which include, among other things, $55 million in inventory losses, overhead costs related to the period in which our Puerto Rico plants were not operational, and incremental costs, all of which resulted from hurricanes in Puerto Rico and are included in Cost of sales, and a net loss of $30 million related to the sale of our 40% ownership investment in Teuto, including the extinguishment of a put option for the then remaining 60% ownership interest, which is included in Other (income)/deductions––net. 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						Nine Months Ended
(MILLIONS OF DOLLARS)	September 30, 2018		October 1, 2017		% Change		September 30, 2018		October 1, 2017		% Change
U.S.	$	6,361	$	6,534	(3	)	$	18,861	$	19,516	(3	)
Developed Europe(a)	2,231		2,163		3		6,657		6,309		6
Developed Rest of World(b)	1,640		1,632		1		4,795		4,797		—
Emerging Markets(c)	3,066		2,839		8		9,358		8,222		14
Revenues	$	13,298	$	13,168	1		$	39,670	$	38,843	2

^(a)  Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion and $1.7 billion in the third quarter of 2018 and 2017, respectively, and $5.3 billion and $5.0 billion in the first nine months of2018 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				Nine Months Ended
PRODUCT	PRIMARY INDICATIONS OR CLASS	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
TOTAL REVENUES		$	13,298	$	13,168	$	39,670	$	38,843
PFIZER INNOVATIVE HEALTH (IH)(a)		$	8,471	$	8,118	$	24,573	$	23,204
Internal Medicine		$	2,463	$	2,455	$	7,339	$	7,245
Lyrica IH(b)	Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury	1,132		1,150		3,398		3,382
Eliquis alliance revenues and direct sales	Atrial fibrillation, deep vein thrombosis, pulmonary embolism	870		644		2,524		1,813
Chantix/Champix	An aid to smoking cessation treatment in adults 18 years of age or older	261		240		789		727
BMP2	Development of bone and cartilage	54		79		206		198
Toviaz	Overactive bladder	67		62		197		187
Viagra IH(c)	Erectile dysfunction	—		206		—		711
All other Internal Medicine	Various	79		75		224		228
Vaccines		$	1,845	$	1,649	$	4,708	$	4,385
Prevnar 13/Prevenar 13	Vaccines for prevention of pneumococcal disease	1,660		1,522		4,290		4,069
FSME/IMMUN-TicoVac	Tick-borne encephalitis vaccine	57		43		162		119
Trumenba	Meningococcal Group B vaccine	61		42		95		79
All other Vaccines	Various	67		43		160		117
Oncology		$	1,775	$	1,616	$	5,294	$	4,551
Ibrance	Advanced breast cancer	1,025		878		2,985		2,410
Sutent	Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor	248		276		785		805
Xtandi alliance revenues	Castration-resistant prostate cancer	180		150		510		422
Xalkori	ALK-positive and ROS1-positive advanced NSCLC	127		146		417		442
Inlyta	Advanced RCC	71		84		226		256
Bosulif	Philadelphia chromosome–positive chronic myelogenous leukemia	69		57		206		163
All other Oncology	Various	55		26		164		54
Inflammation & Immunology (I&I)		$	1,018	$	1,000	$	2,951	$	2,863
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	531		613		1,589		1,818
Xeljanz	Rheumatoid arthritis, psoriatic arthritis, ulcerative colitis	432		348		1,221		935
Eucrisa	Mild-to-moderate atopic dermatitis (eczema)	40		15		104		33
All other I&I	Various	15		23		37		78
Rare Disease		$	531	$	569	$	1,651	$	1,637
BeneFIX	Hemophilia	132		151		420		453
Genotropin	Replacement of human growth hormone	143		136		416		375
Refacto AF/Xyntha	Hemophilia	117		140		388		409
Somavert	Acromegaly	64		65		195		182
All other Rare Disease	Various	74		77		232		218
Consumer Healthcare		$	839	$	829	$	2,631	$	2,522
PFIZER ESSENTIAL HEALTH (EH)(d)		$	4,826	$	5,050	$	15,097	$	15,639
Legacy Established Products (LEP)(e)		$	2,533	$	2,681	$	7,865	$	7,995
Lipitor	Reduction of LDL cholesterol	507		491		1,539		1,341
Norvasc	Hypertension	247		226		773		684
Premarin family	Symptoms of menopause	204		238		605		711
Xalatan/Xalacom	Glaucoma and ocular hypertension	76		83		233		241
Effexor	Depression and certain anxiety disorders	78		76		228		215
Zoloft	Depression and certain anxiety disorders	72		78		223		215
Zithromax	Bacterial infections	54		61		216		202
EpiPen	Epinephrine injection used in treatment of life-threatening allergic reactions	68		82		215		253
Xanax	Anxiety disorders	52		58		163		164
Sildenafil Citrate	Erectile dysfunction	1		—		72		—
All other LEP	Various	1,176		1,288		3,599		3,969

(MILLIONS OF DOLLARS)		Three Months Ended				Nine Months Ended
PRODUCT	PRIMARY INDICATIONS OR CLASS	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
Sterile Injectable Pharmaceuticals (SIP)(f)		$	1,239	$	1,273	$	3,928	$	4,270
Sulperazon	Treatment of infections	145		114		464		345
Medrol	Steroid anti-inflammatory	95		109		318		352
Fragmin	Slows blood clotting	76		79		221		221
Tygacil	Tetracycline class antibiotic	60		60		186		192
Zosyn/Tazocin	Antibiotic	55		47		175		124
Precedex	Sedation agent in surgery or intensive care	47		51		166		182
All other SIP	Various	761		814		2,399		2,852
Peri-LOE Products(g)		$	698	$	794	$	2,208	$	2,398
Viagra EH(c)	Erectile dysfunction	137		102		509		285
Celebrex	Arthritis pain and inflammation, acute pain	188		212		494		564
Vfend	Fungal infections	87		97		294		305
Lyrica EH(b)	Epilepsy, neuropathic pain and generalized anxiety disorder	81		134		251		428
Zyvox	Bacterial infections	50		68		184		220
Revatio	Pulmonary arterial hypertension	53		58		163		189
Pristiq	Depression	52		69		156		230
All other Peri-LOE Products	Various	49		55		157		176
Biosimilars(h)	Various	$	197	$	141	$	558	$	367
Inflectra/Remsima	Inflammatory diseases	166		112		469		284
All other Biosimilars	Various	31		28		89		82
Pfizer CentreOne(i)		$	159	$	161	$	539	$	514
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	$	1,285	$	3,649	$	3,810
Total Viagra(c)	Erectile dysfunction	$	137	$	308	$	509	$	996
Total Alliance revenues	Various	$	977	$	741	$	2,820	$	2,112

^(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, beginning in 2018, total Viagra revenues 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, previously 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 in the U.S. 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 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.

^(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.