Note 15. Segment, Product and Geographic Area Information

A. Segment Information

We manage our operations through five operating segments––Primary Care (PC), Specialty Care and Oncology (SC&O), Established Products and Emerging Markets (EP&EM), Animal Health and Consumer Healthcare (AH&CH) and Nutrition (Nutri). Each operating segment has responsibility for its commercial activities and for certain research and development activities related to in-line products and IPR&D projects that generally have achieved proof-of-concept.

Previously, we managed our operations through two operating segments––Biopharmaceutical and Diversified.

We regularly review our segments and the approach used by management to evaluate performance and allocate resources.

A description of each of our five operating segments follows:

●

Primary Care operating segment (PC)––includes revenues and earnings, as defined by management, from human pharmaceutical products primarily prescribed by primary-care physicians, and may include products in the following therapeutic and disease areas: Alzheimer’s disease, diabetes, cardiovascular (excluding pulmonary arterial hypertension), major depressive disorder, genitourinary, osteoporosis, pain and respiratory. Examples of products in this unit include Celebrex, Lipitor, Lyrica, Premarin, Pristiq and Viagra. All revenues and earnings for such products are allocated to the Primary Care unit, except those generated in emerging markets and those that are managed by the Established Products unit.

●	Specialty Care and Oncology operating segment (SC&O)––comprises the Specialty Care business unit and the Oncology business unit.

●

Specialty Care––includes revenues and earnings, as defined by management, from human pharmaceutical products primarily prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: antibacterials, antifungals, antivirals, bone, inflammation, growth hormones, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, psychosis and vaccines. Examples of products in this unit include Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Xalatan and Zyvox. All revenues and earnings for such products are allocated to the Specialty Care unit, except those generated in emerging markets and those that are managed by the Established Products unit.

●

Oncology––includes revenues and earnings, as defined by management, from human pharmaceutical products addressing oncology and oncology-related illnesses. Examples of products in this unit include Aromasin, Sutent and Torisel. All revenues and earnings for such products are allocated to the Oncology unit, except those generated in emerging markets and those that are managed by the Established Products unit.

●	Established Products and Emerging Markets operating segment (EP&EM)––comprises the Established Products business unit and the Emerging Markets business unit.

●

Established Products––generally includes revenues and earnings, as defined by management, from human pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically, products are transferred to this unit in the beginning of the fiscal year following losing patent protection or marketing exclusivity. In certain situations, products may be transferred to this unit at a different point than the beginning of the fiscal year following losing patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues and earnings generated in emerging markets. Examples of products in this unit include Arthrotec, Effexor XR, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin.

●

Emerging Markets––includes revenues and earnings, as defined by management, from all human pharmaceutical products sold in emerging markets, including Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

●	Animal Health and Consumer Healthcare operating segment (AH&CH)—comprises the Animal Health business unit and the Consumer Healthcare business unit.

●

Animal Health––includes worldwide revenues and earnings, as defined by management, from products to prevent and treat disease in livestock and companion animals, including vaccines, paraciticides and anti-infectives.

●

Consumer Healthcare––generally includes worldwide revenues and earnings, as defined by management, from non-prescription medicines and vitamins, including products in the following therapeutic categories: GI-topicals, dietary supplements, pain management and respiratory. Examples of products in Consumer Healthcare are Advil, Caltrate, Centrum, ChapStick and Robitussin.

●	Nutrition operating segment (Nutri)––generally includes revenues and earnings, as defined by management, from a full line of infant and toddler nutritional products sold outside of the U.S. and Canada.

Our chief operating decision maker uses the revenues and earnings of the five operating segments, among other factors, for performance evaluation and resource allocation. For the operating segments that comprise more than one business unit, a single segment manager is responsible for target setting, performance evaluation and resource allocation among those business units.

Certain costs are not allocated to our operating segment results, such as costs associated with the following:

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Worldwide Research and Development (WRD), which is generally responsible for human health research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate business unit for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization also has responsibility for certain science-based platform services, which provide technical expertise and other services to the various research and development projects.

●

Pfizer Medical, which is responsible for all human-health-related regulatory submissions and interactions with regulatory agencies. This organization is also responsible for the collection, evaluation and reporting of all safety event information related to our human health products and for conducting clinical trial audits and readiness reviews and for providing Pfizer-related medical information to healthcare providers.

●

Corporate, which is responsible for platform functions such as finance, global real estate operations, human resources, legal, science and technology, worldwide procurement, worldwide public affairs and policy and worldwide technology. These costs include payroll charges and associated operating expenses, as well as interest income and expense.

●

Certain transactions and events such as (1) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (2) acquisition-related activities, where we incur costs for restructuring, integration, implementation and executing the transaction; and (3) certain significant items, which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and sales of assets or businesses.

We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared (such as our plant network assets) or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $196 billion at July 3, 2011 and approximately $195 billion at December 31, 2010.

Certain information by operating segment follows:

	Revenues				R&D Expenses				Earnings(a)
(millions of dollars)	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010		July 3, 2011			July 4, 2010
Three Months Ended:
Primary Care	$	5,870	$	5,923	$	304	$	413	$	3,811		$	4,054
Specialty Care and Oncology		4,038		4,118		375		377		2,586			2,729
Established Products and Emerging Markets		4,732		4,980		79		65		2,475			2,924
Animal Health and Consumer Healthcare		1,776		1,571		105		97		514			482
Total reportable segments		16,416		16,592		863		952		9,386			10,189
Nutrition and other business activities(b)		568		540		868		849		(759	)		(728	)
Reconciling Items:
Corporate(c)		––		––		328		375		(1,647	)		(1,654	)
Purchase accounting adjustments(d)		––		––		––		5		(1,736	)		(2,100	)
Acquisition-related costs(e)		––		––		––		––		(595	)		(1,101	)
Certain significant items(f)		––		––		178		––		(658	)		(95	)
Other unallocated(g)		––		––		––		––		(309	)		(585	)
	$	16,984	$	17,132	$	2,237	$	2,181	$	3,682		$	3,926
Six Months Ended:
Primary Care	$	11,311	$	11,789	$	627	$	775	$	7,357		$	8,137
Specialty Care and Oncology		8,276		8,002		722		741		5,459			5,390
Established Products and Emerging Markets		9,277		9,736		135		97		4,965			5,916
Animal Health and Consumer Healthcare		3,503		3,080		207		203		1,003			879
Total reportable segments		32,367		32,607		1,691		1,816		18,784			20,322
Nutrition and other business activities(b)		1,119		1,101		1,724		1,769		(1,481	)		(1,521	)
Reconciling Items:
Corporate(c)		––		––		661		782		(3,307	)		(3,533	)
Purchase accounting adjustments(d)		––		––		––		15		(3,521	)		(4,939	)
Acquisition-related costs(e)		––		––		4		20		(1,170	)		(1,900	)
Certain significant items(f)		––		––		248		––		(1,866	)		(278	)
Other unallocated(g)		––		––		––		––		(639	)		(1,076	)
	$	33,486	$	33,708	$	4,328	$	4,402	$	6,800		$	7,075

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

(b)

Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the research and development costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization.

(c)	Corporate includes, among other things, administration expenses, interest income/(expense), certain performance-based and all share-based compensation expenses.

(d)	Significant impacts of purchase accounting include charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment.

(e)

Acquisition-related costs can include costs associated with acquiring businesses and, integrating and restructuring acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring (see Note 5. Costs Associated with Cost-Reduction and Productivity Initiatives and Acquisition Activity for additional information).

(f)

Certain significant items are substantive, unusual items that, either as a result of their nature or size, we would not expect to occur as part of our normal business on a regular basis. Such items primarily include restructuring charges and implementation costs associated with our cost-reduction and productivity initiatives that are not associated with an acquisition, the impact of certain tax and/or legal settlements and certain asset impairments.

For the second quarter of 2011, certain significant items related to (a) R&D expenses, representing implementation costs and additional depreciation––asset restructuring associated with our cost-reduction and productivity initiatives that are not associated with an acquisition and (b) earnings, including: (i) restructuring charges and implementation costs associated with our cost-reduction and productivity initiatives that are not associated with an acquisition of $256 million, (ii) charges for certain legal matters of $53 million, (iii) certain asset impairment charges of $332 million and (iv) other charges of $17 million (see Note 5. Costs Associated with Cost-Reduction and Productivity Initiatives and Acquisition Activity and Note 6. Other (Income)/Deductions––Net for additional information).

For the second quarter of 2010, certain significant items related to earnings included: (i) asset impairment charges of $200 million and (ii) other income of $105 million.

For the first six months of 2011, certain significant items related to (a) R&D expenses, representing implementation costs and additional depreciation––asset restructuring associated with our cost-reduction and productivity initiatives that are not associated with an acquisition and (b) earnings, including: (i) restructuring charges and implementation costs associated with our cost-reduction and productivity initiatives that are not associated with an acquisition of $828 million, (ii) charges for certain legal matters of $525 million, (iii) certain asset impairment charges of $489 million and (iv) other charges of $24 million (see Note 5. Costs Associated with Cost-Reduction and Productivity Initiatives and Acquisition Activity and Note 6. Other (Income)/Deductions––Net for additional information).

For the first six months of 2010, certain significant items included: (i) asset impairment charges of $200 million, (ii) charges for certain legal matters of $142 million, and (iii) other income of $64 million.

(g)	Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment.

B. Product Information

Significant product revenues follow:

	Three Months Ended				Six Months Ended
(millions of dollars)	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010
Revenues from biopharmaceutical products:
Lipitor	$	2,591	$	2,813	$	4,976	$	5,570
Prevnar/Prevenar 13		821		569		1,817		855
Enbrel(a)		914		808		1,784		1,610
Lyrica		908		762		1,734		1,485
Celebrex		622		604		1,213		1,174
Viagra		495		491		965		970
Norvasc		375		422		731		790
Xalatan/Xalacom		291		449		683		871
Zyvox		325		299		644		591
Sutent		296		255		572		514
Premarin family		255		260		490		516
Geodon/Zeldox		258		247		490		501
Detrol/Detrol LA		230		260		455		521
Genotropin		230		233		439		439
Chantix/Champix		190		170		389		359
Vfend		192		207		387		395
Effexor XR		168		621		372		1,337
Zosyn/Tazocin		162		230		341		494
BeneFIX		176		164		340		318
Prevnar/Prevenar (7-valent)		155		331		308		851
Caduet		143		126		285		261
Zoloft		146		144		281		264
Pristiq		147		113		276		223
Medrol		135		113		256		222
Revatio		130		122		253		236
Zithromax/Zmax		114		110		242		213
ReFacto AF/Xyntha		123		98		240		188
Aromasin		95		122		209		250
Aricept(b)		106		103		205		210
Cardura		101		110		197		217
BMP2		101		99		194		197
Rapamune		100		97		189		188
Fragmin		97		84		188		174
Tygacil		75		88		148		172
Protonix		44		174		103		332
Alliance revenues(c)		875		1,061		1,759		2,065
All other biopharmaceutical products		2,454		2,062		4,709		3,954
Total revenues from biopharmaceutical products		14,640		15,021		28,864		29,527
Revenues from other products:
Animal Health		1,055		893		2,037		1,739
Consumer Healthcare		721		678		1,466		1,341
Nutrition		493		476		963		934
Pfizer CentreSource		75		64		156		167
Total revenues	$	16,984	$	17,132	$	33,486	$	33,708

(a)	Outside the U.S. and Canada.

(b)	Represents direct sales under license agreement with Eisai Co., Ltd.

(c)	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.

C. Geographic Area Information

Revenues by geographic area follow:

	Three Months Ended							Six Months Ended
(millions of dollars)	July 3, 2011		July 4, 2010		% Change			July 3, 2011		July 4, 2010		% Change

Revenues
United States	$	6,700	$	7,333		(9	)	$	13,724	$	14,598		(6	)
Developed Europe(a)		4,265		4,056		5			8,149		8,317		(2	)
Developed Rest of World(b)		2,673		2,693		(1	)		5,219		4,995		4
Emerging Markets(c)		3,346		3,050		10			6,394		5,798		10
Total Revenues	$	16,984	$	17,132		(1	)	$	33,486	$	33,708		(1	)

(a)	Developed Europe region includes the following markets: Western Europe and the Scandinavian countries.

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

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