Segment, Geographic and Other Revenue Information (Tables)

3 Months Ended

Apr. 01, 2012

Schedule of Selected Income Statement Information by Segment

Selected income statement information follows:

	Revenues				R&D Expenses				Earnings(a)
	Three Months Ended
(millions of dollars)	April 1, 2012		April 3, 2011		April 1, 2012		April 3, 2011		April 1, 2012			April 3, 2011
Reportable Segments: Primary Care	$	4,097	$	5,441	$	241	$	323	$	2,670		$	3,551
Specialty Care and Oncology		3,868		4,238		373		347		2,596			2,878
Established Products and Emerging Markets(b)		5,100		4,545		73		56		3,177			2,481
Animal Health and Consumer Healthcare		1,761		1,727		93		101		495			489
Total reportable segments		14,826		15,951		780		827		8,938			9,399
Nutrition and other business activities(c)		579		551		682		857		(539	)		(722	)
Reconciling Items:
Corporate(d)		––		––		286		325		(1,820	)		(1,844	)
Purchase accounting adjustments(e)		––		––		10		––		(1,458	)		(1,785	)
Acquisition-related costs(f)		––		––		5		4		(182	)		(575	)
Certain significant items(g)		––		––		302		70		(2,069	)		(1,208	)
Other unallocated(h)		––		––		7		8		(317	)		(147	)
	$	15,405	$	16,502	$	2,072	$	2,091	$	2,553		$	3,118

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

(b) Revenues from the Established Products and Emerging Markets segment increased in the three months ended April 1, 2012 as compared to the three months ended April 3, 2011 due to additional products losing exclusivity and moving to the Established Products unit.   Earnings from the Established Products and Emerging Markets segment increased in the three months ended April 1, 2012 as compared to the three months ended April 3, 2011 primarily due to additional products losing exclusivity and moving to the Established Products unit, as well as change in the mix of products.

(c) 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.

(d) Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities and for Earnings includes, among other things, administration expenses, interest income/(expense), certain compensation and other costs not charged to our operating segments.

(e) Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment.

(f) Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring (see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives for additional information).

(g) Certain significant items are substantive, unusual items 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. 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 Earnings in the first quarter of 2012, certain significant items for earnings includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $817 million, (ii) charges for certain legal matters of $775 million, (iii) certain asset impairment charges of $412 million and (iv) other charges of $65 million (see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions––Net for additional information).

For Earnings in the first quarter of 2011, certain significant items for earnings includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $572 million, (ii) charges for certain legal matters of $472 million, (iii) certain asset impairment charges of $157 million and (iv) other charges of $7 million (see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions––Net for additional information).

R&D Expenses

For the first quarter of 2012 and 2011, certain significant items for R&D primarily reflect additional depreciation.

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

Schedule of Revenues by Geographic Region

Revenues by geographic region follow:

	Three Months Ended
(millions of dollars)	April 1, 2012		April 3, 2011		% Change
Revenues
United States	$	5,954	$	7,024		(15	)
Developed Europe(a)		3,592		3,884		(8	)
Developed Rest of World(b)		2,635		2,546		3
Emerging Markets(c)		3,224		3,048		6
Total Revenues	$	15,405	$	16,502		(7	)

(a) Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.6 billion in the first quarter of 2012 and $2.9 billion in the first quarter of 2011.

(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.

Schedule of Significant Product Revenues

Significant product revenues follow:

	Three Months Ended
(millions of dollars)	April 1, 2012		April 3, 2011
Revenues from biopharmaceutical products:
Lipitor(a)	$	1,395	$	2,385
Lyrica		955		826
Prevnar 13/Prevenar 13		941		996
Enbrel (Outside the U.S. and Canada)		899		870
Celebrex		634		591
Viagra		496		470
Norvasc		334		356
Zyvox		325		319
Sutent		300		276
Premarin family		261		235
Xalatan/Xalacom		227		392
Detrol/Detrol LA		195		225
Genotropin		195		209
BeneFIX		183		164
Geodon/Zeldox		181		232
Vfend		178		195
Chantix/Champix		178		199
Pristiq		151		129
Prevnar/Prevenar (7-valent)		138		153
Revatio		136		123
Medrol		134		121
ReFacto AF/Xyntha		132		117
Zoloft		130		135
Effexor		129		204
Zosyn/Tazocin		128		179
Zithromax/Zmax		123		128
Aricept(b)		94		106
Fragmin		91		91
Relpax		85		80
Cardura		84		96
Rapamune		82		89
Tygacil		81		73
Xanax XR		68		76
BMP2		67		93
Caduet		65		142
EpiPen(c)		58		35
Neurontin		58		71
Sulperazon		58		55
Diflucan		57		65
Aromasin		56		114
Arthrotec		56		59
Unasyn		54		53
Alliance revenues(d)		836		884
All other biopharmaceutical products		2,037		1,813
Total revenues from biopharmaceutical products		13,065		14,224
Revenues from other products:
Animal Health		1,026		982
Consumer Healthcare		735		745
Nutrition		513		470
Other(e)		66		81
Total revenues	$	15,405	$	16,502

(a)	On November 30, 2011, Lipitor lost exclusivity in the U.S. This loss of exclusivity reduced revenues by $922 million in the first quarter of 2012, in comparison with the first quarter of 2011.
(b)	Represents direct sales under license agreement with Eisai Co., Ltd.
(c)	Acquired from King.
(d)	Includes Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
(e)	Includes revenues generated primarily from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.