Delaware | 13-5315170 | ||||
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.05 par value | PFE | New York Stock Exchange | ||||||||||||
1.000% Notes due 2027 | PFE27 | New York Stock Exchange |
No | ☐ |
No | ☐ |
x |
TABLE OF CONTENTS |
Page | |||||
Condensed Consolidated Statements of Income | |||||
Item 2. | |||||
N/A | |||||
N/A | |||||
Item 5. | |||||
Other Information | N/A | ||||
DEFINED TERMS |
Advisory Committee on Immunization Practices | |||||
ALK | anaplastic lymphoma kinase | ||||
Alliance revenues | Revenues from alliance agreements under which we co-promote products discovered or developed by other companies or us | ||||
Astellas | Astellas Pharma | ||||
Global Biopharmaceuticals Business | |||||
BLA | Biologics License Application | ||||
BMS | Bristol-Myers Squibb Company | ||||
Board of Directors | |||||
CDC | U.S. Centers for Disease Control and Prevention | ||||
Cond. J-NDA | Conditional Japan New Drug Application | ||||
Consumer Healthcare JV | GSK Consumer Healthcare JV | ||||
COVID-19 | novel coronavirus disease of 2019 | ||||
Developed | |||||
Developed Markets | Includes the following markets: U.S., Developed Europe, Japan, Australia, Canada, | ||||
Developed Rest of World | Includes the following markets: Japan, Australia, Canada, South Korea and New Zealand | ||||
European | |||||
European Medicines Agency | |||||
Emerging Markets | Includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, | ||||
EPS | earnings per share | ||||
EU | European Union | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FDA | U.S. Food and Drug Administration | ||||
This Quarterly Report on Form 10-Q for the quarterly period ended October | |||||
Generally Accepted Accounting Principles | |||||
GIST | gastrointestinal stromal tumors | ||||
GPD | Global Product Development organization | ||||
GSK | GlaxoSmithKline plc | ||||
Haleon | Haleon plc | ||||
HIPAA | Health Insurance Portability and Accountability Act of 1996 | ||||
Hospira | Hospira, Inc. | ||||
IPR&D | in-process research and development | ||||
IRA | Inflation Reduction Act of 2022 | ||||
IRS | U.S. Internal Revenue Service | ||||
JAK | Janus kinase | ||||
JV | joint venture | ||||
King | King Pharmaceuticals LLC (formerly King Pharmaceuticals, Inc.) | ||||
LIBOR | London Interbank Offered Rate | ||||
LOE | loss of exclusivity |
mCRC | metastatic colorectal cancer | ||||
mCRPC | metastatic castration-resistant prostate cancer | ||||
mCSPC | metastatic castration-sensitive prostate cancer | ||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Meridian | Meridian Medical Technologies, Inc. | ||||
mRNA | messenger ribonucleic acid | ||||
MSA | Manufacturing Supply Agreement | ||||
Mylan | Mylan N.V. | ||||
Myovant | Myovant Sciences Ltd. | ||||
NDA | New Drug Application | ||||
nmCRPC | non-metastatic castration-resistant prostate cancer | ||||
NSCLC | non-small cell lung cancer | ||||
ODT | oral disintegrating tablet | ||||
OPKO | OPKO Health, Inc. | ||||
OTC | over-the-counter | ||||
Paxlovid* | an oral COVID-19 treatment (nirmatrelvir [PF-07321332] tablets and ritonavir tablets) | ||||
PC1 | Pfizer CentreOne | ||||
PGS | Pfizer Global Supply | ||||
Pharmacia | Pharmacia Corporation | ||||
PRAC | Pharmacovigilance Risk Assessment Committee | ||||
PsA | psoriatic arthritis | ||||
QTD | Quarter-to-date or three months ended | ||||
RA | rheumatoid arthritis | ||||
RCC | renal cell carcinoma | ||||
R&D | research and development | ||||
U.S. Securities and Exchange Commission | |||||
United | |||||
Viatris Inc. | |||||
ViiV | ViiV Healthcare Limited | ||||
Worldwide Research, Development and | |||||
PART I. FINANCIAL INFORMATION |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Revenues | $ | 22,638 | $ | 24,035 | $ | 76,040 | $ | 57,450 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Cost of sales(a) | 6,063 | 9,932 | 24,696 | 21,085 | ||||||||||||||||||||||
Selling, informational and administrative expenses(a) | 3,391 | 2,899 | 9,032 | 8,599 | ||||||||||||||||||||||
Research and development expenses(a) | 2,696 | 2,681 | 7,813 | 6,914 | ||||||||||||||||||||||
Acquired in-process research and development expenses(b) | 524 | 762 | 880 | 1,000 | ||||||||||||||||||||||
Amortization of intangible assets | 822 | 968 | 2,478 | 2,743 | ||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 199 | 646 | 580 | 667 | ||||||||||||||||||||||
Other (income)/deductions––net | (59) | (1,696) | 1,063 | (4,043) | ||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 9,001 | 7,843 | 29,498 | 20,484 | ||||||||||||||||||||||
Provision/(benefit) for taxes on income | 356 | (328) | 3,098 | 1,603 | ||||||||||||||||||||||
Income from continuing operations | 8,645 | 8,171 | 26,400 | 18,881 | ||||||||||||||||||||||
Discontinued operations––net of tax | (21) | (13) | 4 | (248) | ||||||||||||||||||||||
Net income before allocation to noncontrolling interests | 8,623 | 8,159 | 26,404 | 18,633 | ||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 15 | 12 | 27 | 47 | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 8,608 | $ | 8,146 | $ | 26,378 | $ | 18,586 | ||||||||||||||||||
Earnings per common share––basic: | ||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 1.54 | $ | 1.45 | $ | 4.70 | $ | 3.37 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | (0.04) | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 1.54 | $ | 1.45 | $ | 4.71 | $ | 3.32 | ||||||||||||||||||
Earnings per common share––diluted: | ||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 1.51 | $ | 1.43 | $ | 4.60 | $ | 3.31 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | (0.04) | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 1.51 | $ | 1.42 | $ | 4.60 | $ | 3.27 | ||||||||||||||||||
Weighted-average shares––basic | 5,607 | 5,609 | 5,606 | 5,597 | ||||||||||||||||||||||
Weighted-average shares––diluted | 5,718 | 5,725 | 5,729 | 5,688 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Revenues | $ | 13,168 | $ | 13,045 | $ | 38,843 | $ | 39,196 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales(a) | 2,847 | 3,085 | 7,980 | 9,111 | ||||||||||||
Selling, informational and administrative expenses(a) | 3,500 | 3,559 | 10,233 | 10,414 | ||||||||||||
Research and development expenses(a) | 1,859 | 1,881 | 5,346 | 5,360 | ||||||||||||
Amortization of intangible assets | 1,177 | 968 | 3,571 | 2,934 | ||||||||||||
Restructuring charges and certain acquisition-related costs | 149 | 531 | 377 | 988 | ||||||||||||
Other (income)/deductions––net | 51 | 1,417 | (16 | ) | 2,815 | |||||||||||
Income from continuing operations before provision for taxes on income | 3,585 | 1,604 | 11,351 | 7,575 | ||||||||||||
Provision for taxes on income(b) | 727 | 249 | 2,287 | 1,109 | ||||||||||||
Income from continuing operations(b) | 2,858 | 1,355 | 9,064 | 6,465 | ||||||||||||
Discontinued operations––net of tax | — | — | 1 | — | ||||||||||||
Net income before allocation to noncontrolling interests(b) | 2,858 | 1,355 | 9,066 | 6,465 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 18 | — | 32 | 25 | ||||||||||||
Net income attributable to Pfizer Inc.(b) | $ | 2,840 | $ | 1,355 | $ | 9,034 | $ | 6,440 | ||||||||
Earnings per common share––basic(b): | ||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 0.48 | $ | 0.22 | $ | 1.51 | $ | 1.06 | ||||||||
Discontinued operations––net of tax | — | — | — | — | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 0.48 | $ | 0.22 | $ | 1.51 | $ | 1.06 | ||||||||
Earnings per common share––diluted(b): | ||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 0.47 | $ | 0.22 | $ | 1.49 | $ | 1.04 | ||||||||
Discontinued operations––net of tax | — | — | — | — | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 0.47 | $ | 0.22 | $ | 1.49 | $ | 1.04 | ||||||||
Weighted-average shares––basic | 5,951 | 6,066 | 5,972 | 6,095 | ||||||||||||
Weighted-average shares––diluted(b) | 6,041 | 6,150 | 6,057 | 6,175 | ||||||||||||
Cash dividends paid per common share | $ | 0.32 | $ | 0.30 | $ | 0.96 | $ | 0.90 |
(b)See Note 1D. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Net income before allocation to noncontrolling interests | $ | 8,623 | $ | 8,159 | $ | 26,404 | $ | 18,633 | ||||||||||||||||||
Foreign currency translation adjustments, net | (918) | (866) | (2,549) | (366) | ||||||||||||||||||||||
Unrealized holding gains/(losses) on derivative financial instruments, net | 589 | 213 | 1,443 | 179 | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(a) | (615) | 48 | (972) | 286 | ||||||||||||||||||||||
(26) | 261 | 471 | 464 | |||||||||||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities, net | (777) | (266) | (1,397) | (128) | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(b) | 606 | 9 | 1,094 | (172) | ||||||||||||||||||||||
(171) | (257) | (303) | (300) | |||||||||||||||||||||||
Reclassification adjustments related to amortization of prior service costs and other, net | (31) | (39) | (99) | (119) | ||||||||||||||||||||||
Reclassification adjustments related to curtailments of prior service costs and other, net | 2 | (58) | (8) | (62) | ||||||||||||||||||||||
(29) | (97) | (107) | (181) | |||||||||||||||||||||||
Other comprehensive income/(loss), before tax | (1,144) | (959) | (2,488) | (382) | ||||||||||||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss) | (33) | (65) | (149) | (44) | ||||||||||||||||||||||
Other comprehensive income/(loss) before allocation to noncontrolling interests | $ | (1,111) | $ | (894) | $ | (2,339) | $ | (338) | ||||||||||||||||||
Comprehensive income/(loss) before allocation to noncontrolling interests | $ | 7,512 | $ | 7,265 | $ | 24,065 | $ | 18,296 | ||||||||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 10 | 9 | 16 | 48 | ||||||||||||||||||||||
Comprehensive income/(loss) attributable to Pfizer Inc. | $ | 7,503 | $ | 7,256 | $ | 24,049 | $ | 18,248 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Net income before allocation to noncontrolling interests | $ | 2,858 | $ | 1,355 | $ | 9,066 | $ | 6,465 | ||||||||
Foreign currency translation adjustments, net | 878 | 417 | 1,352 | 998 | ||||||||||||
Reclassification adjustments(a) | (3 | ) | — | 110 | — | |||||||||||
875 | 417 | 1,461 | 998 | |||||||||||||
Unrealized holding losses on derivative financial instruments, net | (50 | ) | (126 | ) | (149 | ) | (970 | ) | ||||||||
Reclassification adjustments for realized (gains)/losses(b) | 56 | 150 | (393 | ) | 280 | |||||||||||
6 | 24 | (542 | ) | (690 | ) | |||||||||||
Unrealized holding gains on available-for-sale securities, net | 384 | 261 | 698 | 740 | ||||||||||||
Reclassification adjustments for realized gains(b) | (278 | ) | (112 | ) | (181 | ) | (129 | ) | ||||||||
106 | 149 | 518 | 611 | |||||||||||||
Benefit plans: actuarial losses, net | (103 | ) | (82 | ) | (41 | ) | (101 | ) | ||||||||
Reclassification adjustments related to amortization(c) | 140 | 140 | 448 | 418 | ||||||||||||
Reclassification adjustments related to settlements, net(c) | 38 | 28 | 89 | 76 | ||||||||||||
Other | (76 | ) | 69 | (111 | ) | 51 | ||||||||||
(1 | ) | 155 | 384 | 444 | ||||||||||||
Benefit plans: prior service (costs)/credits and other, net | — | 95 | (2 | ) | 182 | |||||||||||
Reclassification adjustments related to amortization(c) | (46 | ) | (45 | ) | (138 | ) | (127 | ) | ||||||||
Reclassification adjustments related to curtailments, net(c) | (3 | ) | (8 | ) | (14 | ) | (14 | ) | ||||||||
Other | 1 | 6 | 2 | 12 | ||||||||||||
(48 | ) | 48 | (151 | ) | 54 | |||||||||||
Other comprehensive income, before tax | 938 | 793 | 1,669 | 1,417 | ||||||||||||
Tax provision/(benefit) on other comprehensive income(d) | (80 | ) | 116 | (218 | ) | 111 | ||||||||||
Other comprehensive income before allocation to noncontrolling interests | $ | 1,018 | $ | 677 | $ | 1,888 | $ | 1,306 | ||||||||
Comprehensive income before allocation to noncontrolling interests | $ | 3,876 | $ | 2,031 | $ | 10,953 | $ | 7,771 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 19 | — | 48 | 24 | ||||||||||||
Comprehensive income attributable to Pfizer Inc. | $ | 3,857 | $ | 2,032 | $ | 10,906 | $ | 7,747 |
(MILLIONS OF DOLLARS) | October 1, 2017 | December 31, 2016 | ||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 2,779 | $ | 2,595 | ||||
Short-term investments | 14,146 | 15,255 | ||||||
Trade accounts receivable, less allowance for doubtful accounts: 2017—$590; 2016—$609 | 10,002 | 8,225 | ||||||
Inventories | 7,925 | 6,783 | ||||||
Current tax assets | 3,263 | 3,041 | ||||||
Other current assets | 2,158 | 2,249 | ||||||
Assets held for sale | 16 | 801 | ||||||
Total current assets | 40,291 | 38,949 | ||||||
Long-term investments | 7,311 | 7,116 | ||||||
Property, plant and equipment, less accumulated depreciation: 2017—$15,906; 2016—$14,807 | 13,505 | 13,318 | ||||||
Identifiable intangible assets, less accumulated amortization | 49,721 | 52,648 | ||||||
Goodwill | 56,078 | 54,449 | ||||||
Noncurrent deferred tax assets and other noncurrent tax assets | 1,858 | 1,812 | ||||||
Other noncurrent assets | 3,388 | 3,323 | ||||||
Total assets | $ | 172,151 | $ | 171,615 | ||||
Liabilities and Equity | ||||||||
Short-term borrowings, including current portion of long-term debt: 2017—$3,072; 2016—$4,225 | $ | 9,448 | $ | 10,688 | ||||
Trade accounts payable | 3,480 | 4,536 | ||||||
Dividends payable | 1,909 | 1,944 | ||||||
Income taxes payable | 1,003 | 437 | ||||||
Accrued compensation and related items | 1,932 | 2,487 | ||||||
Other current liabilities | 10,446 | 11,023 | ||||||
Total current liabilities | 28,217 | 31,115 | ||||||
Long-term debt | 34,503 | 31,398 | ||||||
Pension benefit obligations, net | 5,531 | 6,406 | ||||||
Postretirement benefit obligations, net | 1,687 | 1,766 | ||||||
Noncurrent deferred tax liabilities | 30,411 | 30,753 | ||||||
Other taxes payable | 4,304 | 4,000 | ||||||
Other noncurrent liabilities | 6,388 | 6,337 | ||||||
Total liabilities | 111,041 | 111,776 | ||||||
Commitments and Contingencies | ||||||||
Preferred stock | 22 | 24 | ||||||
Common stock | 463 | 461 | ||||||
Additional paid-in capital | 83,827 | 82,685 | ||||||
Treasury stock | (89,421 | ) | (84,364 | ) | ||||
Retained earnings | 75,043 | 71,774 | ||||||
Accumulated other comprehensive loss | (9,164 | ) | (11,036 | ) | ||||
Total Pfizer Inc. shareholders’ equity | 60,770 | 59,544 | ||||||
Equity attributable to noncontrolling interests | 340 | 296 | ||||||
Total equity | 61,110 | 59,840 | ||||||
Total liabilities and equity | $ | 172,151 | $ | 171,615 |
(MILLIONS) | October 2, 2022 | December 31, 2021 | ||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 1,298 | $ | 1,944 | ||||||||||
Short-term investments | 34,825 | 29,125 | ||||||||||||
Trade accounts receivable, less allowance for doubtful accounts: 2022—$474; 2021—$492 | 16,076 | 11,479 | ||||||||||||
Inventories | 9,513 | 9,059 | ||||||||||||
Current tax assets | 2,544 | 4,266 | ||||||||||||
Other current assets | 6,149 | 3,820 | ||||||||||||
Total current assets | 70,403 | 59,693 | ||||||||||||
Equity-method investments | 9,826 | 16,472 | ||||||||||||
Long-term investments | 4,062 | 5,054 | ||||||||||||
Property, plant and equipment, less accumulated depreciation: 2022—$14,931; 2021—$15,074 | 15,441 | 14,882 | ||||||||||||
Identifiable intangible assets | 28,151 | 25,146 | ||||||||||||
Goodwill | 49,441 | 49,208 | ||||||||||||
Noncurrent deferred tax assets and other noncurrent tax assets | 7,136 | 3,341 | ||||||||||||
Other noncurrent assets | 10,890 | 7,679 | ||||||||||||
Total assets | $ | 195,350 | $ | 181,476 | ||||||||||
Liabilities and Equity | ||||||||||||||
Short-term borrowings, including current portion of long-term debt: 2022—$2,566; 2021—$1,636 | $ | 4,040 | $ | 2,241 | ||||||||||
Trade accounts payable | 6,267 | 5,578 | ||||||||||||
Dividends payable | 2,245 | 2,249 | ||||||||||||
Income taxes payable | 3,071 | 1,266 | ||||||||||||
Accrued compensation and related items | 2,852 | 3,332 | ||||||||||||
Deferred revenues | 6,191 | 3,067 | ||||||||||||
Other current liabilities | 19,647 | 24,939 | ||||||||||||
Total current liabilities | 44,314 | 42,671 | ||||||||||||
Long-term debt | 32,629 | 36,195 | ||||||||||||
Pension benefit obligations | 2,738 | 3,489 | ||||||||||||
Postretirement benefit obligations | 222 | 235 | ||||||||||||
Noncurrent deferred tax liabilities | 616 | 349 | ||||||||||||
Other taxes payable | 9,701 | 11,331 | ||||||||||||
Other noncurrent liabilities | 12,239 | 9,743 | ||||||||||||
Total liabilities | 102,459 | 104,013 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Common stock | 476 | 473 | ||||||||||||
Additional paid-in capital | 91,359 | 90,591 | ||||||||||||
Treasury stock | (113,945) | (111,361) | ||||||||||||
Retained earnings | 122,967 | 103,394 | ||||||||||||
Accumulated other comprehensive loss | (8,225) | (5,897) | ||||||||||||
Total Pfizer Inc. shareholders’ equity | 92,631 | 77,201 | ||||||||||||
Equity attributable to noncontrolling interests | 259 | 262 | ||||||||||||
Total equity | 92,891 | 77,462 | ||||||||||||
Total liabilities and equity | $ | 195,350 | $ | 181,476 |
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | Shares | Par Value | Add’l Paid-In Capital | Shares | Cost | Retained Earnings | Accum. Other Comp. Loss | Share- holders’ Equity | Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 3, 2022 | 9,496 | $ | 476 | $ | 91,183 | (3,903) | $ | (113,939) | $ | 116,608 | $ | (7,119) | $ | 87,208 | $ | 261 | $ | 87,469 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 8,608 | 8,608 | 15 | 8,623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | (1,106) | (1,106) | (5) | (1,111) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $0.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (2,245) | (2,245) | (2,245) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | (7) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions | 20 | — | 172 | — | (6) | (5) | 161 | 161 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 4 | — | — | — | 4 | (4) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, October 2, 2022 | 9,515 | $ | 476 | $ | 91,359 | (3,903) | $ | (113,945) | $ | 122,967 | $ | (8,225) | $ | 92,631 | $ | 259 | $ | 92,891 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | Shares | Par Value | Add’l Paid-In Capital | Shares | Cost | Retained Earnings | Accum. Other Comp. Loss | Share- holders’ Equity | Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 4, 2021 | 9,450 | $ | 472 | $ | 89,336 | (3,851) | $ | (111,356) | $ | 96,346 | $ | (4,758) | $ | 70,042 | $ | 273 | $ | 70,315 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 8,146 | 8,146 | 12 | 8,159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | (891) | (891) | (3) | (894) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $0.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (2,192) | (2,192) | (2,192) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | (8) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions | 13 | 1 | 637 | — | (3) | (1) | 634 | 634 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (47) | (47) | 1 | (46) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, October 3, 2021 | 9,462 | $ | 473 | $ | 89,973 | (3,851) | $ | (111,359) | $ | 102,252 | $ | (5,649) | $ | 75,691 | $ | 275 | $ | 75,967 |
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | Shares | Par Value | Add’l Paid-In Capital | Shares | Cost | Retained Earnings | Accum. Other Comp. Loss | Share- holders’ Equity | Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | 9,471 | $ | 473 | $ | 90,591 | (3,851) | $ | (111,361) | $ | 103,394 | $ | (5,897) | $ | 77,201 | $ | 262 | $ | 77,462 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 26,378 | 26,378 | 27 | 26,404 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | (2,328) | (2,328) | (11) | (2,339) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $1.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (6,734) | (6,734) | (6,734) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | (7) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions | 45 | 2 | 760 | (12) | (584) | (71) | 108 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | (39) | (2,000) | (2,000) | (2,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 7 | — | — | — | 7 | (11) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, October 2, 2022 | 9,515 | $ | 476 | $ | 91,359 | (3,903) | $ | (113,945) | $ | 122,967 | $ | (8,225) | $ | 92,631 | $ | 259 | $ | 92,891 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | Shares | Par Value | Add’l Paid-In Capital | Shares | Cost | Retained Earnings | Accum. Other Comp. Loss | Share- holders’ Equity | Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | 9,407 | $ | 470 | $ | 88,674 | (3,840) | $ | (110,988) | $ | 90,392 | $ | (5,310) | $ | 63,238 | $ | 235 | $ | 63,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 18,586 | 18,586 | 47 | 18,633 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | (338) | (338) | — | (338) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $1.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (6,569) | (6,569) | (6,569) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | (8) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions | 56 | 3 | 1,300 | (11) | (371) | (77) | 855 | 855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | (81) | (81) | 1 | (79) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, October 3, 2021 | 9,462 | $ | 473 | $ | 89,973 | (3,851) | $ | (111,359) | $ | 102,252 | $ | (5,649) | $ | 75,691 | $ | 275 | $ | 75,967 |
Nine Months Ended | ||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | ||||||
Operating Activities | ||||||||
Net income before allocation to noncontrolling interests(a) | $ | 9,066 | $ | 6,465 | ||||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,695 | 4,208 | ||||||
Asset write-offs and impairments | 326 | 1,146 | ||||||
Loss on sale of HIS net assets | 52 | 1,422 | ||||||
Deferred taxes from continuing operations | 241 | (1,335 | ) | |||||
Share-based compensation expense | 595 | 532 | ||||||
Benefit plan contributions in excess of expense | (1,042 | ) | (775 | ) | ||||
Other adjustments, net | (561 | ) | 68 | |||||
Other changes in assets and liabilities, net of acquisitions and divestitures(a) | (3,644 | ) | (1,582 | ) | ||||
Net cash provided by operating activities(a) | 9,728 | 10,151 | ||||||
Investing Activities | ||||||||
Purchases of property, plant and equipment | (1,256 | ) | (1,134 | ) | ||||
Purchases of short-term investments | (6,469 | ) | (15,170 | ) | ||||
Proceeds from redemptions/sales of short-term investments | 5,783 | 20,685 | ||||||
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less | 2,758 | 6,485 | ||||||
Purchases of long-term investments | (2,526 | ) | (4,771 | ) | ||||
Proceeds from redemptions/sales of long-term investments | 2,417 | 6,915 | ||||||
Acquisitions of businesses, net of cash acquired | (1,000 | ) | (17,679 | ) | ||||
Acquisitions of intangible assets | (188 | ) | (96 | ) | ||||
Other investing activities, net | 519 | 60 | ||||||
Net cash provided by/(used in) investing activities | 38 | (4,704 | ) | |||||
Financing Activities | ||||||||
Proceeds from short-term borrowings | 7,003 | 6,397 | ||||||
Principal payments on short-term borrowings | (7,691 | ) | (3,321 | ) | ||||
Net proceeds from/(payments on) short-term borrowings with original maturities of three months or less | 555 | (963 | ) | |||||
Proceeds from issuance of long-term debt | 5,273 | 5,031 | ||||||
Principal payments on long-term debt | (4,474 | ) | (4,317 | ) | ||||
Purchases of common stock | (5,000 | ) | (5,000 | ) | ||||
Cash dividends paid | (5,750 | ) | (5,496 | ) | ||||
Proceeds from exercise of stock options | 656 | 946 | ||||||
Other financing activities, net(a) | (223 | ) | (192 | ) | ||||
Net cash used in financing activities(a) | (9,650 | ) | (6,915 | ) | ||||
Effect of exchange-rate changes on cash and cash equivalents | 67 | (79 | ) | |||||
Net increase/(decrease) in cash and cash equivalents | 184 | (1,547 | ) | |||||
Cash and cash equivalents, beginning | 2,595 | 3,641 | ||||||
Cash and cash equivalents, end | $ | 2,779 | $ | 2,094 | ||||
Supplemental Cash Flow Information | ||||||||
Non-cash transactions: | ||||||||
Receipt of ICU Medical common stock(b) | $ | 428 | $ | — | ||||
Promissory note from ICU Medical(b) | 75 | — | ||||||
Cash paid (received) during the period for: | ||||||||
Income taxes | $ | 1,424 | $ | 1,430 | ||||
Interest | 1,101 | 1,177 | ||||||
Interest rate hedges | (183 | ) | (356 | ) |
Nine Months Ended | ||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net income before allocation to noncontrolling interests | $ | 26,404 | $ | 18,633 | ||||||||||
Discontinued operations—net of tax | 4 | (248) | ||||||||||||
Net income from continuing operations before allocation to noncontrolling interests | 26,400 | 18,881 | ||||||||||||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 3,545 | 3,856 | ||||||||||||
Asset write-offs and impairments | 287 | 93 | ||||||||||||
Deferred taxes from continuing operations | (3,399) | (3,610) | ||||||||||||
Share-based compensation expense | 508 | 686 | ||||||||||||
Benefit plan contributions in excess of expense/income | (532) | (1,933) | ||||||||||||
Other adjustments, net | 1,481 | (1,848) | ||||||||||||
Other changes in assets and liabilities, net of acquisitions and divestitures | (7,605) | 10,867 | ||||||||||||
Net cash provided by operating activities from continuing operations | 20,685 | 26,993 | ||||||||||||
Net cash provided by/(used in) operating activities from discontinued operations | — | (327) | ||||||||||||
Net cash provided by operating activities | 20,685 | 26,666 | ||||||||||||
Investing Activities | ||||||||||||||
Purchases of property, plant and equipment | (2,235) | (1,709) | ||||||||||||
Purchases of short-term investments | (29,701) | (26,280) | ||||||||||||
Proceeds from redemptions/sales of short-term investments | 35,087 | 15,852 | ||||||||||||
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | (10,877) | (7,152) | ||||||||||||
Purchases of long-term investments | (1,627) | (861) | ||||||||||||
Proceeds from redemptions/sales of long-term investments | 446 | 569 | ||||||||||||
Acquisition of business, net of cash acquired | (6,225) | — | ||||||||||||
Dividends received from Haleon/GSK Consumer Healthcare JV (Note 2C) | 3,960 | — | ||||||||||||
Other investing activities, net | (200) | (370) | ||||||||||||
Net cash provided by/(used in) investing activities from continuing operations | (11,373) | (19,951) | ||||||||||||
Net cash provided by/(used in) investing activities from discontinued operations | — | (8) | ||||||||||||
Net cash provided by/(used in) investing activities | (11,373) | (19,960) | ||||||||||||
Financing Activities | ||||||||||||||
Proceeds from short-term borrowings | 3,887 | — | ||||||||||||
Payments on short-term borrowings | (3,887) | (1) | ||||||||||||
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less | 870 | 265 | ||||||||||||
Proceeds from issuance of long-term debt | — | 997 | ||||||||||||
Payments on long-term debt | (1,609) | (1,001) | ||||||||||||
Purchases of common stock | (2,000) | — | ||||||||||||
Cash dividends paid | (6,738) | (6,540) | ||||||||||||
Other financing activities, net | (342) | (185) | ||||||||||||
Net cash provided by/(used in) financing activities | (9,819) | (6,465) | ||||||||||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents | (139) | (32) | ||||||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents | (646) | 209 | ||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period | 1,983 | 1,825 | ||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at end of period | $ | 1,338 | $ | 2,034 | ||||||||||
Supplemental Cash Flow Information | ||||||||||||||
Cash paid/(received) during the period for: | ||||||||||||||
Income taxes | $ | 4,919 | $ | 2,943 | ||||||||||
Interest paid | 1,121 | 1,205 | ||||||||||||
Interest rate hedges | 28 | (26) | ||||||||||||
Non-cash transaction: | ||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 463 | $ | 1,552 |
(MILLIONS) | October 2, 2022 | December 31, 2021 | ||||||||||||
Reserve against Trade accounts receivable, less allowance for doubtful accounts | $ | 1,133 | $ | 1,077 | ||||||||||
Other current liabilities: | ||||||||||||||
Accrued rebates | 3,991 | 3,811 | ||||||||||||
Other accruals | 418 | 528 | ||||||||||||
Other noncurrent liabilities | 497 | 433 | ||||||||||||
Total accrued rebates and other sales-related accruals | $ | 6,038 | $ | 5,850 |
Summarized financial information for our equity method investee, the Consumer Healthcare JV, for the three and nine months ending June 30, 2022, the most recent period available, and for the three and nine months ending June 30, 2021, is as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
(MILLIONS) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||
Net sales | $ | 3,218 | $ | 3,152 | $ | 10,164 | $ | 9,428 | ||||||||||||||||||||||||
Cost of sales | (1,196) | (1,180) | (3,830) | (3,536) | ||||||||||||||||||||||||||||
Gross profit | $ | 2,022 | $ | 1,972 | $ | 6,334 | $ | 5,892 | ||||||||||||||||||||||||
Income from continuing operations | 226 | 348 | 1,303 | 1,064 | ||||||||||||||||||||||||||||
Net income | 226 | 348 | 1,303 | 1,064 | ||||||||||||||||||||||||||||
Income attributable to shareholders | 210 | 330 | 1,256 | 1,012 |
The following summarizes acquisitions and cost-reduction/productivity initiatives costs and credits: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Restructuring charges/(credits): | ||||||||||||||||||||||||||
Employee terminations | $ | 158 | $ | 630 | $ | 293 | $ | 649 | ||||||||||||||||||
Asset impairments | 17 | 10 | 44 | 7 | ||||||||||||||||||||||
Exit costs/(credits) | 2 | 3 | 31 | — | ||||||||||||||||||||||
Restructuring charges/(credits)(a) | 177 | 643 | 368 | 656 | ||||||||||||||||||||||
Transaction costs(b) | — | — | 42 | — | ||||||||||||||||||||||
Integration costs and other(c) | 22 | 3 | 170 | 11 | ||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 199 | 646 | 580 | 667 | ||||||||||||||||||||||
Net periodic benefit costs/(credits) recorded in Other (income)/deductions––net | — | (63) | (5) | (51) | ||||||||||||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(d): | ||||||||||||||||||||||||||
Cost of sales | 7 | 19 | 22 | 53 | ||||||||||||||||||||||
Selling, informational and administrative expenses | 1 | 8 | 1 | 23 | ||||||||||||||||||||||
Total additional depreciation––asset restructuring | 7 | 27 | 22 | 76 | ||||||||||||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(e): | ||||||||||||||||||||||||||
Cost of sales | 14 | 8 | 40 | 29 | ||||||||||||||||||||||
Selling, informational and administrative expenses | 136 | 142 | 344 | 287 | ||||||||||||||||||||||
Research and development expenses | — | — | — | 1 | ||||||||||||||||||||||
Total implementation costs | 150 | 151 | 384 | 316 | ||||||||||||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 357 | $ | 760 | $ | 982 | $ | 1,008 |
The following summarizes the components and changes in restructuring accruals: | ||||||||||||||||||||||||||
(MILLIONS) | Employee Termination Costs | Asset Impairment Charges | Exit Costs | Accrual | ||||||||||||||||||||||
Balance, December 31, 2021(a) | $ | 1,014 | $ | — | $ | 57 | $ | 1,071 | ||||||||||||||||||
Provision | 293 | 44 | 31 | 368 | ||||||||||||||||||||||
Utilization and other(b) | (447) | (44) | (80) | (572) | ||||||||||||||||||||||
Balance, October 2, 2022(c) | $ | 859 | $ | — | $ | 8 | $ | 867 |
Components of Other (income)/deductions––net include: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Interest income | $ | (70) | $ | (10) | $ | (114) | $ | (21) | ||||||||||||||||||
Interest expense | 311 | 325 | 925 | 975 | ||||||||||||||||||||||
Net interest expense | 240 | 315 | 811 | 954 | ||||||||||||||||||||||
Royalty-related income | (239) | (261) | (628) | (649) | ||||||||||||||||||||||
Net (gains)/losses on asset disposals | 7 | (1) | 6 | (99) | ||||||||||||||||||||||
Net (gains)/losses recognized during the period on equity securities(a) | 112 | (400) | 1,353 | (1,601) | ||||||||||||||||||||||
Income from collaborations, out-licensing arrangements and sales of compound/product rights(b) | (4) | (65) | (17) | (317) | ||||||||||||||||||||||
Net periodic benefit costs/(credits) other than service costs | (306) | (1,132) | (294) | (1,635) | ||||||||||||||||||||||
Certain legal matters, net | 77 | 38 | 175 | 112 | ||||||||||||||||||||||
Certain asset impairments(c) | 200 | — | 200 | — | ||||||||||||||||||||||
Haleon/Consumer Healthcare JV equity method (income)/loss(d) | 51 | (105) | (283) | (307) | ||||||||||||||||||||||
Other, net | (198) | (84) | (260) | (502) | ||||||||||||||||||||||
Other (income)/deductions––net | $ | (59) | $ | (1,696) | $ | 1,063 | $ | (4,043) |
Additional information about the intangible asset that was impaired during 2022 (impairment recorded in Other (income)/deductions–net) follows: | ||||||||||||||||||||||||||||||||
Fair Value(a) | Nine Months Ended October 2, 2022 | |||||||||||||||||||||||||||||||
(MILLIONS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | |||||||||||||||||||||||||||
Intangible asset––IPR&D(b) | $ | — | $ | — | $ | — | $ | — | $ | 200 | ||||||||||||||||||||||
The following table provides the components of costs associated with acquisitions and cost-reduction/productivity initiatives: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Restructuring charges(a): | ||||||||||||||||
Employee terminations | $ | (20 | ) | $ | 347 | $ | 9 | $ | 464 | |||||||
Asset impairments(b) | 101 | 27 | 126 | 45 | ||||||||||||
Exit costs | 10 | 29 | 16 | 64 | ||||||||||||
Total restructuring charges | 91 | 404 | 150 | 574 | ||||||||||||
Transaction costs(c) | (14 | ) | 54 | 4 | 114 | |||||||||||
Integration costs(d) | 73 | 74 | 224 | 300 | ||||||||||||
Restructuring charges and certain acquisition-related costs | 149 | 531 | 377 | 988 | ||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(e): | ||||||||||||||||
Cost of sales | 39 | 46 | 74 | 145 | ||||||||||||
Research and development expenses | — | 1 | — | 5 | ||||||||||||
Total additional depreciation––asset restructuring | 39 | 47 | 74 | 151 | ||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(f): | ||||||||||||||||
Cost of sales | 26 | 46 | 77 | 127 | ||||||||||||
Selling, informational and administrative expenses | 22 | 23 | 46 | 56 | ||||||||||||
Research and development expenses | 9 | 8 | 26 | 17 | ||||||||||||
Other (income)/deductions––net | — | 1 | — | 2 | ||||||||||||
Total implementation costs | 57 | 78 | 150 | 202 | ||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 245 | $ | 655 | $ | 601 | $ | 1,341 |
The following table provides the components of and changes in our restructuring accruals: | ||||||||||||||||
(MILLIONS OF DOLLARS) | Employee Termination Costs | Asset Impairment Charges | Exit Costs | Accrual | ||||||||||||
Balance, December 31, 2016(a) | $ | 1,547 | $ | — | $ | 36 | $ | 1,583 | ||||||||
Provision | 9 | 126 | 16 | 150 | ||||||||||||
Utilization and other(b) | (401 | ) | (126 | ) | (24 | ) | (551 | ) | ||||||||
Balance, October 1, 2017(c) | $ | 1,154 | $ | — | $ | 28 | $ | 1,182 |
The following table provides components of Other (income)/deductions––net: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Interest income(a) | $ | (99 | ) | $ | (123 | ) | $ | (275 | ) | $ | (357 | ) | ||||
Interest expense(a) | 320 | 291 | 940 | 889 | ||||||||||||
Net interest expense | 220 | 168 | 666 | 532 | ||||||||||||
Royalty-related income(b) | (140 | ) | (233 | ) | (331 | ) | (695 | ) | ||||||||
Certain legal matters, net(c) | 183 | (40 | ) | 194 | 494 | |||||||||||
Net gains on asset disposals(d) | (155 | ) | (47 | ) | (349 | ) | (81 | ) | ||||||||
Loss on sale and impairment on remeasurement of HIS net assets(e) | (12 | ) | 1,422 | 52 | 1,422 | |||||||||||
Certain asset impairments(f) | 130 | 133 | 143 | 1,080 | ||||||||||||
Business and legal entity alignment costs(g) | 16 | 69 | 54 | 180 | ||||||||||||
Other, net(h) | (191 | ) | (55 | ) | (445 | ) | (117 | ) | ||||||||
Other (income)/deductions––net | $ | 51 | $ | 1,417 | $ | (16 | ) | $ | 2,815 |
The following table provides additional information about the intangible assets that were impaired during 2017 in Other (income)/deductions––net: | ||||||||||||||||||||
Fair Value(a) | Nine Months Ended October 1, 2017 | |||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | |||||||||||||||
Intangible assets––Developed technology rights(b) | $ | 50 | $ | — | $ | — | $ | 50 | $ | 127 |
The following table provides the components of Tax provision/(benefit) on other comprehensive income: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Foreign currency translation adjustments, net(a) | $ | (62 | ) | $ | — | $ | (192 | ) | $ | (15 | ) | |||||
Unrealized holding losses on derivative financial instruments, net | 28 | — | 30 | (192 | ) | |||||||||||
Reclassification adjustments for realized (gains)/losses | (29 | ) | 32 | (169 | ) | 81 | ||||||||||
(1 | ) | 32 | (139 | ) | (112 | ) | ||||||||||
Unrealized holding gains on available-for-sale securities, net | 37 | 40 | 93 | 106 | ||||||||||||
Reclassification adjustments for realized gains | (49 | ) | (14 | ) | (45 | ) | (16 | ) | ||||||||
(12 | ) | 26 | 47 | 90 | ||||||||||||
Benefit plans: actuarial losses, net | (37 | ) | (31 | ) | (15 | ) | (39 | ) | ||||||||
Reclassification adjustments related to amortization | 60 | 47 | 152 | 140 | ||||||||||||
Reclassification adjustments related to settlements, net | 22 | 10 | 30 | 27 | ||||||||||||
Other | (33 | ) | 14 | (46 | ) | 5 | ||||||||||
11 | 40 | 121 | 133 | |||||||||||||
Benefit plans: prior service (costs)/credits and other, net | — | 35 | — | 66 | ||||||||||||
Reclassification adjustments related to amortization | (17 | ) | (17 | ) | (50 | ) | (47 | ) | ||||||||
Reclassification adjustments related to curtailments, net | (1 | ) | (3 | ) | (5 | ) | (5 | ) | ||||||||
Other | 1 | 2 | 1 | 1 | ||||||||||||
(17 | ) | 18 | (55 | ) | 15 | |||||||||||
Tax provision/(benefit) on other comprehensive income | $ | (80 | ) | $ | 116 | $ | (218 | ) | $ | 111 |
Components of Tax provision/(benefit) on other comprehensive income/(loss) include: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Foreign currency translation adjustments, net(a) | $ | 20 | $ | (32) | $ | (165) | $ | (30) | ||||||||||||||||||
Unrealized holding gains/(losses) on derivative financial instruments, net | 47 | 21 | 177 | 28 | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income | (72) | 13 | (97) | 48 | ||||||||||||||||||||||
(25) | 34 | 80 | 76 | |||||||||||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities, net | (97) | (33) | (175) | (16) | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income | 76 | 1 | 137 | (22) | ||||||||||||||||||||||
(21) | (32) | (38) | (37) | |||||||||||||||||||||||
Reclassification adjustments related to amortization of prior service costs and other, net | (7) | (22) | (23) | (39) | ||||||||||||||||||||||
Reclassification adjustments related to curtailments of prior service costs and other, net | — | (14) | (3) | (15) | ||||||||||||||||||||||
(8) | (36) | (26) | (54) | |||||||||||||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss) | $ | (33) | $ | (65) | $ | (149) | $ | (44) |
The following summarizes the changes, net of tax, in Accumulated other comprehensive loss: | ||||||||||||||||||||||||||||||||||||||
Net Unrealized Gains/(Losses) | Benefit Plans | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | Foreign Currency Translation Adjustments(a) | Derivative Financial Instruments | Available-For-Sale Securities | Prior Service (Costs)/Credits and Other | Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | (6,172) | $ | 119 | $ | (220) | $ | 377 | $ | (5,897) | ||||||||||||||||||||||||||||
Other comprehensive income/(loss) | (2,373) | 391 | (265) | (81) | (2,328) | |||||||||||||||||||||||||||||||||
Balance, October 2, 2022 | $ | (8,545) | $ | 509 | $ | (485) | $ | 296 | $ | (8,225) |
The following table provides the changes, net of tax, in Accumulated other comprehensive loss: | ||||||||||||||||||||||||
Net Unrealized Gains/(Losses) | Benefit Plans | |||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Foreign Currency Translation Adjustments | Derivative Financial Instruments | Available-For-Sale Securities | Actuarial Gains/(Losses) | Prior Service (Costs)/Credits and Other | Accumulated Other Comprehensive Income/(Loss) | ||||||||||||||||||
Balance, December 31, 2016 | $ | (6,659 | ) | $ | 348 | $ | (131 | ) | $ | (5,473 | ) | $ | 879 | $ | (11,036 | ) | ||||||||
Other comprehensive income/(loss)(a) | 1,638 | (403 | ) | 470 | 263 | (96 | ) | 1,872 | ||||||||||||||||
Balance, October 1, 2017 | $ | (5,021 | ) | $ | (55 | ) | $ | 339 | $ | (5,210 | ) | $ | 783 | $ | (9,164 | ) |
October 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities with readily determinable fair values: | ||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 12,154 | $ | — | $ | 12,154 | $ | 5,365 | $ | — | $ | 5,365 | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—non-U.S. | 15,885 | — | 15,885 | 17,318 | — | 17,318 | ||||||||||||||||||||||||||||||||||||||
Government and agency—U.S. | 2,931 | — | 2,931 | 4,050 | — | 4,050 | ||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,361 | — | 1,361 | 647 | — | 647 | ||||||||||||||||||||||||||||||||||||||
20,176 | — | 20,176 | 22,014 | — | 22,014 | |||||||||||||||||||||||||||||||||||||||
Total short-term investments | 32,330 | — | 32,330 | 27,379 | — | 27,379 | ||||||||||||||||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 9 | — | 9 | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1,950 | — | 1,950 | 704 | — | 704 | ||||||||||||||||||||||||||||||||||||||
Total other current assets | 1,959 | — | 1,959 | 709 | — | 709 | ||||||||||||||||||||||||||||||||||||||
Long-term investments | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities with readily determinable fair values(a) | 2,972 | 2,960 | 12 | 3,876 | 3,849 | 27 | ||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—non-U.S. | 285 | — | 285 | 465 | — | 465 | ||||||||||||||||||||||||||||||||||||||
Government and agency—U.S. | — | — | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||
Corporate and other | 73 | — | 73 | 50 | — | 50 | ||||||||||||||||||||||||||||||||||||||
358 | — | 358 | 521 | — | 521 | |||||||||||||||||||||||||||||||||||||||
Total long-term investments | 3,330 | 2,960 | 370 | 4,397 | 3,849 | 548 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | — | — | — | 16 | — | 16 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 812 | — | 812 | 242 | — | 242 | ||||||||||||||||||||||||||||||||||||||
Total derivative assets | 812 | — | 812 | 259 | — | 259 | ||||||||||||||||||||||||||||||||||||||
Insurance contracts(b) | 631 | — | 631 | 808 | — | 808 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent assets | 1,444 | — | 1,444 | 1,067 | — | 1,067 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 39,063 | $ | 2,960 | $ | 36,103 | $ | 33,552 | $ | 3,849 | $ | 29,703 | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 295 | $ | — | $ | 295 | $ | 476 | $ | — | $ | 476 | ||||||||||||||||||||||||||||||||
Total other current liabilities | 295 | — | 295 | 476 | — | 476 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 330 | — | 330 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1,153 | — | 1,153 | 405 | — | 405 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent liabilities | 1,482 | — | 1,482 | 405 | — | 405 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,777 | $ | — | $ | 1,777 | $ | 881 | $ | — | $ | 881 |
The following table provides additional information about certain of our financial assets and liabilities: | ||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | December 31, 2016 | ||||||
Selected financial assets measured at fair value on a recurring basis(a) | ||||||||
Trading funds and securities(b) | $ | 347 | $ | 325 | ||||
Available-for-sale debt securities(c) | 16,598 | 18,632 | ||||||
Money market funds | 1,824 | 1,445 | ||||||
Available-for-sale equity securities(c) | 1,032 | 540 | ||||||
Derivative financial instruments in a receivable position(d): | ||||||||
Interest rate swaps | 630 | 625 | ||||||
Foreign currency swaps | 92 | 79 | ||||||
Foreign currency forward-exchange contracts | 110 | 551 | ||||||
20,631 | 22,198 | |||||||
Other selected financial assets | ||||||||
Held-to-maturity debt securities, carried at amortized cost(c), (e) | 1,464 | 1,242 | ||||||
Restricted stock and private equity securities, carried at cost or at equity-method(e) | 719 | 735 | ||||||
2,183 | 1,977 | |||||||
Total selected financial assets | $ | 22,815 | $ | 24,175 | ||||
Selected financial liabilities measured at fair value on a recurring basis(a) | ||||||||
Derivative financial instruments in a liability position(f): | ||||||||
Interest rate swaps | $ | 154 | $ | 148 | ||||
Foreign currency swaps | 710 | 1,374 | ||||||
Foreign currency forward-exchange contracts | 309 | 143 | ||||||
1,173 | 1,665 | |||||||
Other selected financial liabilities | ||||||||
Short-term borrowings: | ||||||||
Principal amount | 9,460 | 10,674 | ||||||
Net fair value adjustments related to hedging and purchase accounting | 2 | 24 | ||||||
Net unamortized discounts, premiums and debt issuance costs | (15 | ) | (11 | ) | ||||
Total short-term borrowings, carried at historical proceeds, as adjusted(e) | 9,448 | 10,688 | ||||||
Long-term debt: | ||||||||
Principal amount | 33,671 | 30,529 | ||||||
Net fair value adjustments related to hedging and purchase accounting | 981 | 998 | ||||||
Net unamortized discounts, premiums and debt issuance costs | (149 | ) | (130 | ) | ||||
Total long-term debt, carried at historical proceeds, as adjusted(g) | 34,503 | 31,398 | ||||||
43,951 | 42,085 | |||||||
Total selected financial liabilities | $ | 45,124 | $ | 43,750 |
The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities, long-term receivables and short-term borrowings not measured at fair value on a recurring basis were not significant as of October 2, 2022 and December 31, 2021. The fair value measurements of our held-to-maturity debt securities and short-term borrowings are based on Level 2 inputs. The fair value measurements of our long-term receivables and private equity securities are based on Level 3 inputs. B. Investments Total Short-Term, Long-Term and Equity-Method Investments
(a)Includes money market funds primarily invested in U.S. Treasury and government debt. (b)Represent investments in the life sciences sector. Debt Securities
Any expected credit losses to these portfolios would be immaterial to our financial statements. |
The following table provides the classification of these selected financial assets and liabilities in our condensed consolidated balance sheets: | ||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | December 31, 2016 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 526 | $ | 547 | ||||
Short-term investments | 14,146 | 15,255 | ||||||
Other current assets(a) | 288 | 567 | ||||||
Long-term investments | 7,311 | 7,116 | ||||||
Other noncurrent assets(b) | 543 | 689 | ||||||
$ | 22,815 | $ | 24,175 | |||||
Liabilities | ||||||||
Short-term borrowings, including current portion of long-term debt | $ | 9,448 | $ | 10,688 | ||||
Other current liabilities(c) | 277 | 443 | ||||||
Long-term debt | 34,503 | 31,398 | ||||||
Other noncurrent liabilities(d) | 896 | 1,222 | ||||||
$ | 45,124 | $ | 43,750 |
The following table provides the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: | ||||||||||||||||||||
Years | October 1, 2017 | |||||||||||||||||||
(MILLIONS OF DOLLARS) | Within 1 | Over 1 to 5 | Over 5 to 10 | Over 10 | Total | |||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||
Corporate debt(a) | $ | 2,741 | $ | 2,591 | $ | 1,525 | $ | 17 | $ | 6,874 | ||||||||||
Western European, Asian, and other government debt(b) | 6,071 | 268 | — | — | 6,339 | |||||||||||||||
Western European, Scandinavian and other government agency debt(b) | 1,955 | 42 | — | — | 1,998 | |||||||||||||||
Supranational debt(b) | 387 | 195 | — | — | 582 | |||||||||||||||
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities | 42 | 424 | — | — | 466 | |||||||||||||||
Other asset-backed debt(c) | 161 | 61 | 3 | — | 226 | |||||||||||||||
U.S. government debt | — | 112 | — | — | 112 | |||||||||||||||
Held-to-maturity debt securities | ||||||||||||||||||||
Time deposits and other | 1,133 | — | 3 | — | 1,137 | |||||||||||||||
Western European government debt(b) | 326 | — | — | — | 326 | |||||||||||||||
Total debt securities | $ | 12,818 | $ | 3,694 | $ | 1,532 | $ | 18 | $ | 18,061 |
Equity Securities
(a)Reported in Other (income)/deductions––net. See Note 4. (b)Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of October 2, 2022, there were cumulative impairments and downward adjustments of $148 million and upward adjustments of $201 million. Impairments, downward and upward adjustments were not significant in the third quarter and first nine months of 2022 and 2021. |
Short-term borrowings include: | ||||||||||||||
(MILLIONS) | October 2, 2022 | December 31, 2021 | ||||||||||||
Current portion of long-term debt, principal amount | $ | 2,550 | $ | 1,636 | ||||||||||
Other short-term borrowings, principal amount(a) | 1,474 | 605 | ||||||||||||
Total short-term borrowings, principal amount | 4,024 | 2,241 | ||||||||||||
Net fair value adjustments related to hedging and purchase accounting | 16 | — | ||||||||||||
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted | $ | 4,040 | $ | 2,241 |
The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: | ||||||||||||||
(MILLIONS) | October 2, 2022 | December 31, 2021 | ||||||||||||
Total long-term debt, principal amount | $ | 31,831 | $ | 34,948 | ||||||||||
Net fair value adjustments related to hedging and purchase accounting | 976 | 1,438 | ||||||||||||
Net unamortized discounts, premiums and debt issuance costs | (178) | (195) | ||||||||||||
Other long-term debt | — | 4 | ||||||||||||
Total long-term debt, carried at historical proceeds, as adjusted | $ | 32,629 | $ | 36,195 | ||||||||||
The following table provides the amounts of senior unsecured long-term debt issued in the first quarter of 2017: | ||||||||||
Principal | ||||||||||
As of October 1, 2017 | ||||||||||
(MILLIONS) | Maturity Date | Euro | U.S. Dollar | |||||||
3-month EURIBOR + 0.20% floating rate notes (0% floor) | March 6, 2019 | € | 1,250 | $ | 1,479 | |||||
0.00% euro notes(a) | March 6, 2020 | 1,000 | 1,183 | |||||||
0.25% euro notes(a) | March 6, 2022 | 1,000 | 1,183 | |||||||
1.00% euro notes(a) | March 6, 2027 | 750 | 887 | |||||||
Total euro long-term debt issued in the first quarter of 2017(b) | € | 4,000 | $ | 4,732 | ||||||
4.20% notes(c) | March 17, 2047 | 1,065 | ||||||||
Total long-term debt issued in the first quarter of 2017(d) | $ | 5,797 |
The derivative financial instruments primarily hedge or offset exposures in the euro, U.K. pound, Japanese yen, and Canadian dollar, and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to two years. We may seek to protect against possible declines in the reported net investments of our foreign business entities. Interest Rate Risk––Our interest-bearing investments and borrowings are subject to interest rate risk. Depending on market conditions, we may change the profile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps, either to hedge or offset the exposure to changes in the fair value of hedged items with fixed interest rates, or to convert variable rate debt or investments to fixed rates. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt. |
The following table provides the maturity schedule of our Long-term debt outstanding as of October 1, 2017: | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2018 | 2019 | 2020 | 2021 | After 2021 | Total | ||||||||||||||||||
Maturities | $ | 481 | $ | 4,825 | $ | 1,534 | $ | 4,502 | $ | 23,162 | $ | 34,503 |
The following summarizes the fair value of the derivative financial instruments and notional amounts (including those reported as part of discontinued operations): | ||||||||||||||||||||||||||||||||||||||
October 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | Notional | Asset | Liability | Notional | Asset | Liability | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(a) | $ | 33,274 | $ | 2,479 | $ | 1,175 | $ | 29,576 | $ | 787 | $ | 717 | ||||||||||||||||||||||||||
Interest rate contracts | 2,250 | 9 | 330 | 2,250 | 21 | — | ||||||||||||||||||||||||||||||||
2,488 | 1,505 | 808 | 717 | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 26,426 | 283 | 273 | $ | 21,419 | 160 | 164 | ||||||||||||||||||||||||||||||
Total | $ | 2,771 | $ | 1,777 | $ | 968 | $ | 881 |
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures (including those reported as part of discontinued operations): | ||||||||||||||||||||||||||||||||||||||
Gains/(Losses) Recognized in OID(a) | Gains/(Losses) Recognized in OCI(a) | Gains/(Losses) Reclassified from OCI into OID and COS(a) | ||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(b) | $ | — | $ | — | $ | 528 | $ | 204 | $ | 558 | $ | (59) | ||||||||||||||||||||||||||
Amount excluded from effectiveness testing and amortized into earnings(c) | — | — | 61 | 10 | 57 | 10 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Fair Value Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | (124) | (5) | — | — | — | — | ||||||||||||||||||||||||||||||||
Hedged item | 124 | 5 | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | 680 | 177 | — | — | ||||||||||||||||||||||||||||||||
Amount excluded from effectiveness testing and amortized into earnings(c) | — | — | 78 | 19 | 32 | 26 | ||||||||||||||||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:(d) | ||||||||||||||||||||||||||||||||||||||
Foreign currency short-term borrowings | — | — | — | 25 | — | — | ||||||||||||||||||||||||||||||||
Foreign currency long-term debt | — | — | 49 | 19 | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | (420) | (74) | — | — | — | — | ||||||||||||||||||||||||||||||||
All other net(c) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
$ | (420) | $ | (74) | $ | 1,396 | $ | 453 | $ | 647 | $ | (21) | |||||||||||||||||||||||||||
Gains/(Losses) Recognized in OID(a) | Gains/(Losses) Recognized in OCI(a) | Gains/(Losses) Reclassified from OCI into OID and COS(a) | ||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(b) | $ | — | $ | — | $ | 1,339 | $ | 147 | $ | 872 | $ | (314) | ||||||||||||||||||||||||||
Amount excluded from effectiveness testing and amortized into earnings(c) | — | — | 105 | 31 | 100 | 28 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Fair Value Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | (346) | (6) | — | — | — | — | ||||||||||||||||||||||||||||||||
Hedged item | 346 | 6 | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | — | — | 1,613 | 332 | — | — | ||||||||||||||||||||||||||||||||
Amount excluded from effectiveness testing and amortized into earnings(c) | — | — | 63 | 54 | 95 | 82 | ||||||||||||||||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:(d) | ||||||||||||||||||||||||||||||||||||||
Foreign currency short-term borrowings | — | — | 26 | 52 | — | — | ||||||||||||||||||||||||||||||||
Foreign currency long-term debt | — | — | 119 | 66 | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | (832) | (97) | — | — | — | — | ||||||||||||||||||||||||||||||||
All other net(c) | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||
$ | (832) | $ | (97) | $ | 3,264 | $ | 683 | $ | 1,068 | $ | (204) |
The following summarizes cumulative basis adjustments to our debt in fair value hedges: | ||||||||||||||||||||||||||||||||||||||
October 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount | Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | Carrying Amount of Hedged Assets/Liabilities(a) | Active Hedging Relationships | Discontinued Hedging Relationships | Carrying Amount of Hedged Assets/Liabilities(a) | Active Hedging Relationships | Discontinued Hedging Relationships | ||||||||||||||||||||||||||||||||
Short-term borrowings, including current portion of long-term debt | $ | — | $ | — | $ | 16 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Long-term debt | $ | 2,235 | $ | (330) | $ | 1,061 | $ | 2,233 | $ | 16 | $ | 1,154 |
The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Amount of Gains/(Losses) Recognized in OID(a), (b), (c) | Amount of Gains/(Losses) Recognized in OCI (Effective Portion)(a), (d) | Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion)(a), (d) | ||||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 218 | $ | 87 | $ | 148 | $ | (39 | ) | |||||||||||
Foreign currency forward-exchange contracts | 1 | 2 | (269 | ) | (212 | ) | (204 | ) | (111 | ) | ||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency forward-exchange contracts | — | — | — | — | — | — | ||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign currency forward-exchange contracts | 33 | 20 | — | — | — | — | ||||||||||||||||||
Foreign currency swaps | — | (4 | ) | — | — | — | — | |||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency long-term debt | — | — | (166 | ) | — | — | — | |||||||||||||||||
All other net | — | — | 1 | — | — | — | ||||||||||||||||||
$ | 34 | $ | 18 | $ | (216 | ) | $ | (126 | ) | $ | (55 | ) | $ | (150 | ) | |||||||||
Nine Months Ended | ||||||||||||||||||||||||
Amount of Gains/(Losses) Recognized in OID(a), (b), (c) | Amount of Gains/(Losses) Recognized in OCI (Effective Portion)(a), (d) | Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion)(a), (d) | ||||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 455 | $ | (204 | ) | $ | 419 | $ | (165 | ) | ||||||||||
Foreign currency forward-exchange contracts | (5 | ) | 1 | (604 | ) | (770 | ) | (26 | ) | (118 | ) | |||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency forward-exchange contracts | — | 1 | — | (15 | ) | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | ||||||||||||||||||||||||
Foreign currency forward-exchange contracts | (111 | ) | (49 | ) | — | — | — | — | ||||||||||||||||
Foreign currency swaps | (1 | ) | (9 | ) | — | — | — | — | ||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | ||||||||||||||||||||||||
Foreign currency short-term borrowings | — | — | — | (26 | ) | — | — | |||||||||||||||||
Foreign currency long-term debt | — | — | (518 | ) | — | — | — | |||||||||||||||||
All other net | — | — | 1 | 1 | — | — | ||||||||||||||||||
$ | (117 | ) | $ | (56 | ) | $ | (666 | ) | $ | (1,014 | ) | $ | 394 | $ | (283 | ) |
The following summarizes the components of Inventories: | ||||||||||||||
(MILLIONS) | October 2, 2022 | December 31, 2021 | ||||||||||||
Finished goods | $ | 3,159 | $ | 3,641 | ||||||||||
Work-in-process | 4,540 | 4,424 | ||||||||||||
Raw materials and supplies | 1,813 | 994 | ||||||||||||
Inventories(a) | $ | 9,513 | $ | 9,059 | ||||||||||
Noncurrent inventories not included above(b) | $ | 3,327 | $ | 939 |
The following summarizes the components of Identifiable intangible assets: | ||||||||||||||||||||||||||||||||||||||
October 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | Gross Carrying Amount | Accumulated Amortization | Identifiable Intangible Assets, less Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Identifiable Intangible Assets, less Accumulated Amortization | ||||||||||||||||||||||||||||||||
Finite-lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Developed technology rights | $ | 72,818 | $ | (55,309) | $ | 17,509 | $ | 73,346 | $ | (53,732) | $ | 19,614 | ||||||||||||||||||||||||||
Brands | 922 | (832) | 90 | 922 | (807) | 115 | ||||||||||||||||||||||||||||||||
Licensing agreements and other | 2,296 | (1,373) | 923 | 2,284 | (1,299) | 985 | ||||||||||||||||||||||||||||||||
76,036 | (57,514) | 18,522 | 76,552 | (55,838) | 20,714 | |||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Brands | 827 | 827 | 827 | 827 | ||||||||||||||||||||||||||||||||||
IPR&D(a) | 7,829 | 7,829 | 3,092 | 3,092 | ||||||||||||||||||||||||||||||||||
Licensing agreements and other(a) | 972 | 972 | 513 | 513 | ||||||||||||||||||||||||||||||||||
9,629 | 9,629 | 4,432 | 4,432 | |||||||||||||||||||||||||||||||||||
Identifiable intangible assets(a), (b) | $ | 85,665 | $ | (57,514) | $ | 28,151 | $ | 80,984 | $ | (55,838) | $ | 25,146 |
Total(a) |
Balance, January 1, 2022 | $ | 49,208 | ||||||||||||||||||||||||||||||
1,029 | ||||||||||||||||||||||||||||||||
Balance, October 2, 2022 |
The following summarizes the components of net periodic benefit cost/(credit): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | International | Postretirement Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 29 | $ | 32 | $ | 7 | $ | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 151 | 114 | 38 | 37 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (195) | (261) | (72) | (83) | (12) | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost/(credit) | — | — | — | — | (31) | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gains)/losses(a) | (193) | (836) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | (1) | (64) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | 1 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(credit) reported in income | $ | (235) | $ | (983) | $ | (6) | $ | (14) | $ | (30) | $ | (96) | ||||||||||||||||||||||||||||||||||||||||||||
The following table provides the components of Inventories: | ||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | December 31, 2016 | ||||||
Finished goods | $ | 2,977 | $ | 2,293 | ||||
Work-in-process | 4,070 | 3,696 | ||||||
Raw materials and supplies | 879 | 793 | ||||||
Inventories(a) | $ | 7,925 | $ | 6,783 | ||||
Noncurrent inventories not included above(b) | $ | 669 | $ | 683 |
The following table provides the components of Identifiable intangible assets: | ||||||||||||||||||||||||
October 1, 2017 | December 31, 2016 | |||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Gross Carrying Amount | Accumulated Amortization | Identifiable Intangible Assets, less Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Identifiable Intangible Assets, less Accumulated Amortization | ||||||||||||||||||
Finite-lived intangible assets | ||||||||||||||||||||||||
Developed technology rights(a) | $ | 89,585 | $ | (53,960 | ) | $ | 35,625 | $ | 83,390 | $ | (49,650 | ) | $ | 33,740 | ||||||||||
Brands | 2,135 | (1,127 | ) | 1,008 | 2,092 | (1,032 | ) | 1,060 | ||||||||||||||||
Licensing agreements and other | 1,930 | (1,071 | ) | 859 | 1,869 | (1,005 | ) | 864 | ||||||||||||||||
93,650 | (56,158 | ) | 37,492 | 87,351 | (51,687 | ) | 35,664 | |||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Brands and other | 6,937 | 6,937 | 6,883 | 6,883 | ||||||||||||||||||||
IPR&D(a) | 5,292 | 5,292 | 10,101 | 10,101 | ||||||||||||||||||||
12,229 | 12,229 | 16,984 | 16,984 | |||||||||||||||||||||
Identifiable intangible assets(b) | $ | 105,879 | $ | (56,158 | ) | $ | 49,721 | $ | 104,335 | $ | (51,687 | ) | $ | 52,648 |
Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: | |||||||||
October 1, 2017 | |||||||||
IH | EH | WRD | |||||||
Developed technology rights | 68 | % | 32 | % | — | % | |||
Brands, finite-lived | 75 | % | 25 | % | — | % | |||
Brands, indefinite-lived | 71 | % | 29 | % | — | % | |||
IPR&D | 80 | % | 13 | % | 7 | % |
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | International | Postretirement Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 89 | $ | 98 | $ | 22 | $ | 27 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 387 | 341 | 121 | 110 | 21 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (685) | (782) | (229) | (246) | (35) | (29) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service credits | 1 | (1) | (1) | (1) | (99) | (116) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gains)/losses(a) | 231 | (881) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | (1) | (14) | (64) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | 8 | 12 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(credit) reported in income | $ | (57) | $ | (1,312) | $ | (20) | $ | (40) | $ | (106) | $ | (160) |
The following presents the detailed calculation of EPS: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
EPS Numerator––Basic | ||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 8,630 | $ | 8,159 | $ | 26,373 | $ | 18,834 | ||||||||||||||||||
Discontinued operations––net of tax | (21) | (13) | 4 | (248) | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 8,608 | $ | 8,146 | $ | 26,378 | $ | 18,586 | ||||||||||||||||||
EPS Numerator––Diluted | ||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 8,630 | $ | 8,159 | $ | 26,373 | $ | 18,834 | ||||||||||||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | (21) | (13) | 4 | (248) | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 8,608 | $ | 8,146 | $ | 26,378 | $ | 18,586 | ||||||||||||||||||
EPS Denominator | ||||||||||||||||||||||||||
Weighted-average number of common shares outstanding––Basic | 5,607 | 5,609 | 5,606 | 5,597 | ||||||||||||||||||||||
Common-share equivalents: stock options and stock issuable under employee compensation plans | 111 | 116 | 124 | 91 | ||||||||||||||||||||||
Weighted-average number of common shares outstanding––Diluted | 5,718 | 5,725 | 5,729 | 5,688 | ||||||||||||||||||||||
Anti-dilutive common stock equivalents(a) | 3 | — | 1 | 3 |
The following table provides the components of and changes in the carrying amount of Goodwill: | ||||||||||||
(MILLIONS OF DOLLARS) | IH | EH | Total | |||||||||
Balance, December 31, 2016 | $ | 30,134 | $ | 24,315 | $ | 54,449 | ||||||
Additions(a) | 572 | 92 | 664 | |||||||||
Other(b) | 491 | 475 | 966 | |||||||||
Balance, October 1, 2017 | $ | 31,197 | $ | 24,882 | $ | 56,078 |
The following table provides the components of net periodic benefit cost/(income): | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||
U.S. Qualified | U.S. Supplemental (Non-Qualified) | International | Postretirement Plans | |||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | ||||||||||||||||||||||||
Net periodic benefit cost/(credit): | ||||||||||||||||||||||||||||||||
Service cost | $ | 67 | $ | 69 | $ | 6 | $ | 5 | $ | 44 | $ | 41 | $ | 10 | $ | 11 | ||||||||||||||||
Interest cost | 157 | 218 | 13 | 18 | 52 | 58 | 23 | 33 | ||||||||||||||||||||||||
Expected return on plan assets | (248 | ) | (239 | ) | — | — | (87 | ) | (95 | ) | (9 | ) | (8 | ) | ||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Actuarial losses | 91 | 99 | 12 | 9 | 29 | 23 | 8 | 9 | ||||||||||||||||||||||||
Prior service costs (credits) | — | 1 | — | — | (1 | ) | (1 | ) | (45 | ) | (45 | ) | ||||||||||||||||||||
Curtailments | 1 | 2 | — | 1 | (2 | ) | — | (3 | ) | (8 | ) | |||||||||||||||||||||
Settlements | 30 | 21 | 7 | 7 | — | 1 | — | — | ||||||||||||||||||||||||
$ | 99 | $ | 170 | $ | 39 | $ | 39 | $ | 35 | $ | 27 | $ | (17 | ) | $ | (9 | ) | |||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||
U.S. Qualified(a) | U.S. Supplemental (Non-Qualified) | International | Postretirement Plans | |||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | ||||||||||||||||||||||||
Net periodic benefit cost/(credit): | ||||||||||||||||||||||||||||||||
Service cost | $ | 202 | $ | 193 | $ | 18 | $ | 14 | $ | 127 | $ | 126 | $ | 32 | $ | 31 | ||||||||||||||||
Interest cost | 478 | 486 | 41 | 40 | 152 | 178 | 68 | 77 | ||||||||||||||||||||||||
Expected return on plan assets | (759 | ) | (721 | ) | — | — | (256 | ) | (291 | ) | (27 | ) | (25 | ) | ||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||
Actuarial losses | 302 | 297 | 37 | 27 | 86 | 70 | 23 | 23 | ||||||||||||||||||||||||
Prior service costs (credits) | 3 | 4 | (1 | ) | (1 | ) | (3 | ) | (2 | ) | (137 | ) | (127 | ) | ||||||||||||||||||
Curtailments | 10 | 5 | — | 1 | (2 | ) | (1 | ) | (15 | ) | (14 | ) | ||||||||||||||||||||
Settlements | 54 | 52 | 32 | 23 | 3 | 2 | — | — | ||||||||||||||||||||||||
$ | 292 | $ | 316 | $ | 127 | $ | 105 | $ | 106 | $ | 81 | $ | (57 | ) | $ | (36 | ) |
Pension Plans | ||||||||||||||||
(MILLIONS OF DOLLARS) | U.S. Qualified | U.S. Supplemental (Non-Qualified) | International | Postretirement Plans | ||||||||||||
Contributions from our general assets for the nine months ended October 1, 2017 | $ | 1,095 | $ | 121 | $ | 134 | $ | 158 | ||||||||
Expected contributions from our general assets during 2017(a) | $ | 1,095 | $ | 146 | $ | 170 | $ | 204 |
The following table provides the detailed calculation of Earnings per common share (EPS): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(IN MILLIONS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
EPS Numerator––Basic | ||||||||||||||||
Income from continuing operations(a) | $ | 2,858 | $ | 1,355 | $ | 9,064 | $ | 6,465 | ||||||||
Less: Net income attributable to noncontrolling interests | 18 | — | 32 | 25 | ||||||||||||
Income from continuing operations attributable to Pfizer Inc.(a) | 2,840 | 1,355 | 9,032 | 6,440 | ||||||||||||
Less: Preferred stock dividends––net of tax | — | — | 1 | 1 | ||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders(a) | 2,839 | 1,355 | 9,032 | 6,439 | ||||||||||||
Discontinued operations––net of tax | — | — | 1 | — | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders(a) | $ | 2,839 | $ | 1,355 | $ | 9,033 | $ | 6,439 | ||||||||
EPS Numerator––Diluted | ||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions(a) | $ | 2,840 | $ | 1,355 | $ | 9,032 | $ | 6,440 | ||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | — | — | 1 | — | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions(a) | $ | 2,840 | $ | 1,355 | $ | 9,034 | $ | 6,440 | ||||||||
EPS Denominator | ||||||||||||||||
Weighted-average number of common shares outstanding––Basic | 5,951 | 6,066 | 5,972 | 6,095 | ||||||||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements(a) | 89 | 84 | 85 | 80 | ||||||||||||
Weighted-average number of common shares outstanding––Diluted(a) | 6,041 | 6,150 | 6,057 | 6,175 | ||||||||||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a), (b) | 47 | 38 | 47 | 60 |
Key therapeutic areas include internal medicine, vaccines, oncology, inflammation & immunology, rare diseases and consumer healthcare. | ||
- - - |
The following provides selected income statement information by reportable segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Earnings(a) | Revenues | Earnings(a) | |||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||||||||||||||||||||||
Reportable Segment: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Biopharma | $ | 22,319 | $ | 23,513 | $ | 14,665 | $ | 11,848 | $ | 75,066 | $ | 56,101 | $ | 45,222 | $ | 29,952 | ||||||||||||||||||||||||||||||||||
Other business activities(b) | 319 | 521 | (4,007) | (3,303) | 974 | 1,348 | (9,820) | (7,778) | ||||||||||||||||||||||||||||||||||||||||||
Reconciling Items: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | — | — | (822) | (980) | — | — | (2,478) | (2,778) | ||||||||||||||||||||||||||||||||||||||||||
Acquisition-related items | — | — | (62) | (41) | — | — | (331) | (14) | ||||||||||||||||||||||||||||||||||||||||||
Certain significant items(c) | — | — | (773) | 318 | — | — | (3,095) | 1,102 | ||||||||||||||||||||||||||||||||||||||||||
$ | 22,638 | $ | 24,035 | $ | 9,001 | $ | 7,843 | $ | 76,040 | $ | 57,450 | $ | 29,498 | $ | 20,484 | |||||||||||||||||||||||||||||||||||
The following summarizes revenues by geographic area: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
United States | $ | 13,851 | $ | 7,020 | 97 | $ | 33,991 | $ | 22,066 | 54 | ||||||||||||||||||||||||||||
Developed Europe | 3,136 | 6,221 | (50) | 14,705 | 13,836 | 6 | ||||||||||||||||||||||||||||||||
Developed Rest of World | 2,351 | 4,498 | (48) | 10,671 | 8,617 | 24 | ||||||||||||||||||||||||||||||||
Emerging Markets | 3,300 | 6,296 | (48) | 16,673 | 12,930 | 29 | ||||||||||||||||||||||||||||||||
Revenues | $ | 22,638 | $ | 24,035 | (6) | $ | 76,040 | $ | 57,450 | 32 | ||||||||||||||||||||||||||||
The following table provides selected income statement information by reportable segment: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Revenues | Earnings(a) | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Reportable Segments: | ||||||||||||||||
IH | $ | 8,118 | $ | 7,332 | $ | 4,875 | $ | 4,187 | ||||||||
EH | 5,050 | 5,712 | 2,765 | 3,128 | ||||||||||||
Total reportable segments | 13,168 | 13,045 | 7,640 | 7,315 | ||||||||||||
Other business activities(b), (c) | — | — | (759 | ) | (753 | ) | ||||||||||
Reconciling Items: | ||||||||||||||||
Corporate(c) | — | — | (1,382 | ) | (1,537 | ) | ||||||||||
Purchase accounting adjustments(c) | — | — | (1,154 | ) | (966 | ) | ||||||||||
Acquisition-related costs(c) | — | — | (155 | ) | (280 | ) | ||||||||||
Certain significant items(d) | — | — | (449 | ) | (1,969 | ) | ||||||||||
Other unallocated | — | — | (156 | ) | (206 | ) | ||||||||||
$ | 13,168 | $ | 13,045 | $ | 3,585 | $ | 1,604 | |||||||||
Nine Months Ended | ||||||||||||||||
Revenues | Earnings(a) | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Reportable Segments: | ||||||||||||||||
IH | $ | 23,204 | $ | 21,471 | $ | 14,190 | $ | 12,470 | ||||||||
EH | 15,639 | 17,725 | 8,558 | 9,985 | ||||||||||||
Total reportable segments | 38,843 | 39,196 | 22,748 | 22,454 | ||||||||||||
Other business activities(b), (c) | — | — | (2,205 | ) | (2,096 | ) | ||||||||||
Reconciling Items: | ||||||||||||||||
Corporate(c) | — | — | (3,948 | ) | (4,217 | ) | ||||||||||
Purchase accounting adjustments(c) | — | — | (3,527 | ) | (3,103 | ) | ||||||||||
Acquisition-related costs(c) | — | — | (347 | ) | (598 | ) | ||||||||||
Certain significant items(d) | — | — | (797 | ) | (4,112 | ) | ||||||||||
Other unallocated | — | — | (573 | ) | (753 | ) | ||||||||||
$ | 38,843 | $ | 39,196 | $ | 11,351 | $ | 7,575 |
(MILLIONS) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | |||||||||||||||||||||||||||
TOTAL REVENUES(a) | $ | 22,638 | $ | 24,035 | $ | 76,040 | $ | 57,450 | ||||||||||||||||||||||||
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)(a), (b) | $ | 22,319 | $ | 23,513 | $ | 75,066 | $ | 56,101 | ||||||||||||||||||||||||
Primary Care | $ | 15,846 | $ | 16,680 | $ | 55,676 | $ | 35,804 | ||||||||||||||||||||||||
Comirnaty direct sales and alliance revenues(c) | Active immunization to prevent COVID-19 | 4,402 | 12,977 | 26,477 | 24,277 | |||||||||||||||||||||||||||
Paxlovid | COVID-19 infection (high risk population) | 7,514 | — | 17,099 | — | |||||||||||||||||||||||||||
Eliquis alliance revenues and direct sales | Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism | 1,464 | 1,346 | 5,001 | 4,470 | |||||||||||||||||||||||||||
Prevnar family(d) | Pneumococcal disease | 1,607 | 1,447 | 4,601 | 3,971 | |||||||||||||||||||||||||||
Premarin family | Symptoms of menopause | 110 | 148 | 327 | 420 | |||||||||||||||||||||||||||
Nimenrix | Meningococcal ACWY disease | 79 | 51 | 221 | 145 | |||||||||||||||||||||||||||
BMP2 | Development of bone and cartilage | 58 | 71 | 201 | 186 | |||||||||||||||||||||||||||
FSME-IMMUN/TicoVac | Tick-borne encephalitis disease | 67 | 47 | 177 | 161 | |||||||||||||||||||||||||||
Toviaz | Overactive bladder | 30 | 56 | 130 | 174 | |||||||||||||||||||||||||||
Trumenba | Meningococcal B disease | 60 | 52 | 108 | 102 | |||||||||||||||||||||||||||
Chantix/Champix | An aid to smoking cessation treatment in adults 18 years of age or older | 4 | 7 | 8 | 409 | |||||||||||||||||||||||||||
All other Primary Care | Various | 451 | 479 | 1,326 | 1,490 | |||||||||||||||||||||||||||
Specialty Care | $ | 3,404 | $ | 3,749 | $ | 10,267 | $ | 11,205 | ||||||||||||||||||||||||
Vyndaqel/Vyndamax | ATTR-CM and polyneuropathy | 602 | 501 | 1,766 | 1,454 | |||||||||||||||||||||||||||
Xeljanz | RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis | 502 | 610 | 1,304 | 1,734 | |||||||||||||||||||||||||||
Enbrel (Outside the U.S. and Canada) | RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis | 230 | 283 | 767 | 888 | |||||||||||||||||||||||||||
Sulperazon | Bacterial infections | 178 | 181 | 598 | 515 | |||||||||||||||||||||||||||
Inflectra | Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis | 131 | 172 | 403 | 485 | |||||||||||||||||||||||||||
Ig Portfolio(e) | Various | 124 | 99 | 356 | 311 | |||||||||||||||||||||||||||
BeneFIX | Hemophilia B | 99 | 104 | 325 | 328 | |||||||||||||||||||||||||||
Zavicefta | Bacterial infections | 98 | 107 | 302 | 306 | |||||||||||||||||||||||||||
Genotropin | Replacement of human growth hormone | 90 | 95 | 261 | 284 | |||||||||||||||||||||||||||
Zithromax | Bacterial infections | 71 | 66 | 250 | 198 | |||||||||||||||||||||||||||
Medrol | Anti-inflammatory glucocorticoid | 79 | 109 | 235 | 320 | |||||||||||||||||||||||||||
Fragmin | Treatment/prevention of venous thromboembolism | 60 | 74 | 202 | 223 | |||||||||||||||||||||||||||
Somavert | Acromegaly | 70 | 70 | 202 | 203 | |||||||||||||||||||||||||||
Refacto AF/Xyntha | Hemophilia A | 58 | 69 | 188 | 235 | |||||||||||||||||||||||||||
Vfend | Fungal infections | 51 | 51 | 171 | 204 | |||||||||||||||||||||||||||
All other Anti-infectives | Various | 374 | 455 | 1,123 | 1,384 | |||||||||||||||||||||||||||
All other Specialty Care | Various | 586 | 702 | 1,816 | 2,134 | |||||||||||||||||||||||||||
Oncology | $ | 3,070 | $ | 3,085 | $ | 9,124 | $ | 9,091 | ||||||||||||||||||||||||
Ibrance | HR-positive/HER2-negative metastatic breast cancer | 1,283 | 1,381 | 3,841 | 4,039 | |||||||||||||||||||||||||||
Xtandi alliance revenues | mCRPC, nmCRPC, mCSPC | 320 | 309 | 878 | 879 | |||||||||||||||||||||||||||
Inlyta | Advanced RCC | 252 | 256 | 760 | 742 | |||||||||||||||||||||||||||
Zirabev | Treatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer | 146 | 96 | 432 | 311 | |||||||||||||||||||||||||||
Bosulif | Philadelphia chromosome–positive chronic myelogenous leukemia | 141 | 136 | 425 | 395 | |||||||||||||||||||||||||||
Xalkori | ALK-positive and ROS1-positive advanced NSCLC | 118 | 116 | 362 | 371 | |||||||||||||||||||||||||||
Ruxience | Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis | 120 | 124 | 357 | 343 |
The following table provides revenues by geographic area: | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
U.S. | $ | 6,534 | $ | 6,530 | — | $ | 19,516 | $ | 19,561 | — | ||||||||||||
Developed Europe(a) | 2,163 | 2,218 | (2 | ) | 6,309 | 6,982 | (10 | ) | ||||||||||||||
Developed Rest of World(b) | 1,632 | 1,711 | (5 | ) | 4,797 | 4,940 | (3 | ) | ||||||||||||||
Emerging Markets(c) | 2,839 | 2,586 | 10 | 8,222 | 7,714 | 7 | ||||||||||||||||
Revenues | $ | 13,168 | $ | 13,045 | 1 | $ | 38,843 | $ | 39,196 | (1 | ) |
The following table provides detailed revenue information: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
PFIZER INNOVATIVE HEALTH (IH)(a) | $ | 8,118 | $ | 7,332 | $ | 23,204 | $ | 21,471 | ||||||||
Internal Medicine | $ | 2,455 | $ | 2,243 | $ | 7,245 | $ | 6,557 | ||||||||
Lyrica IH(b) | 1,150 | 1,049 | 3,382 | 3,107 | ||||||||||||
Eliquis alliance revenues and direct sales | 644 | 449 | 1,813 | 1,225 | ||||||||||||
Chantix/Champix | 240 | 198 | 727 | 631 | ||||||||||||
Viagra IH(c) | 206 | 297 | 711 | 897 | ||||||||||||
BMP2 | 79 | 63 | 198 | 175 | ||||||||||||
Toviaz | 62 | 60 | 187 | 191 | ||||||||||||
All other Internal Medicine | 75 | 128 | 228 | 330 | ||||||||||||
Vaccines | $ | 1,649 | $ | 1,641 | $ | 4,385 | $ | 4,576 | ||||||||
Prevnar 13/Prevenar 13 | 1,522 | 1,536 | 4,069 | 4,302 | ||||||||||||
FSME/IMMUN-TicoVac | 43 | 33 | 119 | 102 | ||||||||||||
All other Vaccines | 85 | 72 | 197 | 172 | ||||||||||||
Oncology | $ | 1,616 | $ | 1,104 | $ | 4,551 | $ | 3,206 | ||||||||
Ibrance | 878 | 550 | 2,410 | 1,492 | ||||||||||||
Sutent | 276 | 260 | 805 | 823 | ||||||||||||
Xalkori | 146 | 140 | 442 | 415 | ||||||||||||
Xtandi alliance revenues | 150 | 2 | 422 | 2 | ||||||||||||
Inlyta | 84 | 95 | 256 | 304 | ||||||||||||
Bosulif | 57 | 43 | 163 | 121 | ||||||||||||
All other Oncology | 26 | 15 | 54 | 49 | ||||||||||||
Inflammation & Immunology (I&I) | $ | 1,000 | $ | 960 | $ | 2,863 | $ | 2,907 | ||||||||
Enbrel (Outside the U.S. and Canada) | 613 | 701 | 1,818 | 2,201 | ||||||||||||
Xeljanz | 348 | 235 | 935 | 649 | ||||||||||||
Eucrisa | 15 | — | 33 | — | ||||||||||||
All other I&I | 23 | 24 | 78 | 57 | ||||||||||||
Rare Disease | $ | 569 | $ | 585 | $ | 1,637 | $ | 1,768 | ||||||||
BeneFIX | 151 | 176 | 453 | 543 | ||||||||||||
Refacto AF/Xyntha | 140 | 140 | 409 | 408 | ||||||||||||
Genotropin | 136 | 147 | 375 | 425 | ||||||||||||
Somavert | 65 | 59 | 182 | 173 | ||||||||||||
All other Rare Disease | 77 | 64 | 218 | 219 | ||||||||||||
Consumer Healthcare | $ | 829 | $ | 798 | $ | 2,522 | $ | 2,457 | ||||||||
PFIZER ESSENTIAL HEALTH (EH)(d) | $ | 5,050 | $ | 5,712 | $ | 15,639 | $ | 17,725 | ||||||||
Legacy Established Products (LEP)(e) | $ | 2,681 | $ | 2,708 | $ | 7,995 | $ | 8,373 | ||||||||
Lipitor | 491 | 422 | 1,341 | 1,294 | ||||||||||||
Premarin family | 238 | 244 | 711 | 751 | ||||||||||||
Norvasc | 226 | 238 | 684 | 714 | ||||||||||||
EpiPen | 82 | 110 | 253 | 300 | ||||||||||||
Xalatan/Xalacom | 83 | 91 | 241 | 273 | ||||||||||||
Effexor | 76 | 70 | 215 | 207 | ||||||||||||
Zoloft | 78 | 72 | 215 | 228 | ||||||||||||
Zithromax | 61 | 56 | 202 | 203 | ||||||||||||
Relpax | 50 | 83 | 193 | 248 | ||||||||||||
Xanax | 58 | 55 | 164 | 163 | ||||||||||||
All other LEP | 1,237 | 1,268 | 3,776 | 3,992 | ||||||||||||
Sterile Injectable Pharmaceuticals (SIP)(f) | $ | 1,273 | $ | 1,461 | $ | 4,270 | $ | 4,481 | ||||||||
Medrol | 109 | 102 | 352 | 330 | ||||||||||||
Sulperazon | 114 | 102 | 345 | 304 | ||||||||||||
Fragmin | 79 | 80 | 221 | 240 | ||||||||||||
Tygacil | 60 | 69 | 192 | 203 | ||||||||||||
Precedex | 51 | 64 | 182 | 199 | ||||||||||||
All other SIP | 860 | 1,044 | 2,977 | 3,206 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Peri-LOE Products(g) | $ | 794 | $ | 1,023 | $ | 2,398 | $ | 3,224 | ||||||||
Celebrex | 212 | 194 | 564 | 550 | ||||||||||||
Lyrica EH(b) | 134 | 191 | 428 | 623 | ||||||||||||
Vfend | 97 | 140 | 305 | 459 | ||||||||||||
Viagra EH(c) | 102 | 89 | 285 | 286 | ||||||||||||
Pristiq | 69 | 174 | 230 | 546 | ||||||||||||
Zyvox | 68 | 94 | 220 | 334 | ||||||||||||
Revatio | 58 | 73 | 189 | 213 | ||||||||||||
All other Peri-LOE Products | 55 | 68 | 176 | 214 | ||||||||||||
Biosimilars(h) | $ | 141 | $ | 83 | $ | 367 | $ | 228 | ||||||||
Inflectra/Remsima | 112 | 49 | 284 | 130 | ||||||||||||
All other Biosimilars | 28 | 34 | 82 | 97 | ||||||||||||
Pfizer CentreOne(i) | $ | 161 | $ | 156 | $ | 514 | $ | 540 | ||||||||
Hospira Infusion Systems (HIS)(j) | $ | — | $ | 281 | $ | 97 | $ | 879 | ||||||||
Revenues | $ | 13,168 | $ | 13,045 | $ | 38,843 | $ | 39,196 | ||||||||
Total Lyrica(b) | $ | 1,285 | $ | 1,240 | $ | 3,810 | $ | 3,730 | ||||||||
Total Viagra(c) | $ | 308 | $ | 387 | $ | 996 | $ | 1,183 | ||||||||
Total Alliance revenues | $ | 741 | $ | 419 | $ | 2,112 | $ | 1,155 |
(MILLIONS) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | |||||||||||||||||||||||||||
Retacrit | Anemia | 87 | 110 | 308 | 322 | |||||||||||||||||||||||||||
Sutent | Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor | 75 | 142 | 287 | 537 | |||||||||||||||||||||||||||
Lorbrena | ALK-positive metastatic NSCLC | 99 | 67 | 247 | 193 | |||||||||||||||||||||||||||
Bavencio alliance revenues | Locally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC | 73 | 54 | 198 | 122 | |||||||||||||||||||||||||||
Aromasin | Post-menopausal early and advanced breast cancer | 66 | 56 | 187 | 159 | |||||||||||||||||||||||||||
Besponsa | Relapsed or refractory B-cell acute lymphoblastic leukemia | 55 | 50 | 164 | 145 | |||||||||||||||||||||||||||
Braftovi | In combination with Mektovi for metastatic melanoma in patients with a BRAFV600E/K mutation and, in combination with Erbitux® (cetuximab)(f), for the treatment of BRAFV600E -mutant mCRC after prior therapy | 58 | 47 | 156 | 136 | |||||||||||||||||||||||||||
Trazimera | HER-positive breast cancer and metastatic stomach cancers | 51 | 45 | 149 | 131 | |||||||||||||||||||||||||||
Mektovi | In combination with Braftovi for metastatic melanoma in patients with a BRAFV600E/K mutation | 45 | 41 | 129 | 112 | |||||||||||||||||||||||||||
All other Oncology | Various | 80 | 53 | 243 | 155 | |||||||||||||||||||||||||||
PFIZER CENTREONE(b) | $ | 319 | $ | 521 | $ | 974 | $ | 1,348 | ||||||||||||||||||||||||
Total Alliance revenues included above | $ | 1,689 | $ | 2,068 | $ | 6,320 | $ | 5,718 |
The following table provides the components of the condensed consolidated statements of income: | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT PER COMMON SHARE DATA) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
Revenues | $ | 13,168 | $ | 13,045 | 1 | $ | 38,843 | $ | 39,196 | (1 | ) | |||||||||||
Cost of sales(a) | 2,847 | 3,085 | (8 | ) | 7,980 | 9,111 | (12 | ) | ||||||||||||||
% of revenues | 21.6 | % | 23.6 | % | 20.5 | % | 23.2 | % | ||||||||||||||
Selling, informational and administrative expenses(a) | 3,500 | 3,559 | (2 | ) | 10,233 | 10,414 | (2 | ) | ||||||||||||||
% of revenues | 26.6 | % | 27.3 | % | 26.3 | % | 26.6 | % | ||||||||||||||
Research and development expenses(a) | 1,859 | 1,881 | (1 | ) | 5,346 | 5,360 | — | |||||||||||||||
% of revenues | 14.1 | % | 14.4 | % | 13.8 | % | 13.7 | % | ||||||||||||||
Amortization of intangible assets | 1,177 | 968 | 22 | 3,571 | 2,934 | 22 | ||||||||||||||||
% of revenues | 8.9 | % | 7.4 | % | 9.2 | % | 7.5 | % | ||||||||||||||
Restructuring charges and certain acquisition-related costs | 149 | 531 | (72 | ) | 377 | 988 | (62 | ) | ||||||||||||||
% of revenues | 1.1 | % | 4.1 | % | 1.0 | % | 2.5 | % | ||||||||||||||
Other (income)/deductions––net | 51 | 1,417 | (96 | ) | (16 | ) | 2,815 | * | ||||||||||||||
Income from continuing operations before provision for taxes on income | 3,585 | 1,604 | * | 11,351 | 7,575 | 50 | ||||||||||||||||
% of revenues | 27.2 | % | 12.3 | % | 29.2 | % | 19.3 | % | ||||||||||||||
Provision for taxes on income(b) | 727 | 249 | * | 2,287 | 1,109 | * | ||||||||||||||||
Effective tax rate | 20.3 | % | 15.5 | % | 20.1 | % | 14.6 | % | ||||||||||||||
Income from continuing operations(b) | 2,858 | 1,355 | * | 9,064 | 6,465 | 40 | ||||||||||||||||
% of revenues | 21.7 | % | 10.4 | % | 23.3 | % | 16.5 | % | ||||||||||||||
Discontinued operations––net of tax | — | — | — | 1 | — | * | ||||||||||||||||
Net income before allocation to noncontrolling interests | 2,858 | 1,355 | * | 9,066 | 6,465 | 40 | ||||||||||||||||
% of revenues | 21.7 | % | 10.4 | % | 23.3 | % | 16.5 | % | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 18 | — | * | 32 | 25 | 27 | ||||||||||||||||
Net income attributable to Pfizer Inc.(b) | $ | 2,840 | $ | 1,355 | * | $ | 9,034 | $ | 6,440 | 40 | ||||||||||||
% of revenues | 21.6 | % | 10.4 | % | 23.3 | % | 16.4 | % | ||||||||||||||
Earnings per common share––basic(b): : | ||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 0.48 | $ | 0.22 | * | $ | 1.51 | $ | 1.06 | 43 | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 0.48 | $ | 0.22 | * | $ | 1.51 | $ | 1.06 | 43 | ||||||||||||
Earnings per common share––diluted(b): | ||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $ | 0.47 | $ | 0.22 | * | $ | 1.49 | $ | 1.04 | 43 | ||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 0.47 | $ | 0.22 | * | $ | 1.49 | $ | 1.04 | 43 | ||||||||||||
Cash dividends paid per common share | $ | 0.32 | $ | 0.30 | 7 | $ | 0.96 | $ | 0.90 | 7 |
(MILLIONS OF DOLLARS) | Three Months | Nine Months | ||||||
Revenues, for the three months and nine months ended October 2, 2016 | $ | 13,045 | $ | 39,196 | ||||
Disposition-related operational impact––February 2017 sale of HIS(a) | (280 | ) | (783 | ) | ||||
Other operational growth/(decline) | ||||||||
Continued growth from key brands(b) and growth from Biosimilars | 806 | 2,245 | ||||||
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) | 148 | 420 | ||||||
Declines from Peri-LOE Products, Enbrel (driven by declines in most developed Europe markets), Prevnar 13/Prevenar 13 (driven by declines in the U.S.), and Viagra (IH) (primarily in the U.S.), as well as a decline in our SIP portfolio, and for the first nine months of 2017, also includes a decline in the LEP portfolio | (598 | ) | (1,951 | ) | ||||
Other operational factors, net | 102 | 87 | ||||||
Operational growth, net | 178 | 19 | ||||||
Operational revenues | 13,222 | 39,215 | ||||||
Unfavorable impact of foreign exchange | (54 | ) | (372 | ) | ||||
Revenues, for the three months and nine months ended October 1, 2017 | $ | 13,168 | $ | 38,843 |
(MILLIONS OF DOLLARS) | Three Months | Nine Months | ||||||
Income from continuing operations before provision for taxes on income, for the three months and nine months ended October 2, 2016 | $ | 1,604 | $ | 7,575 | ||||
Favorable/(Unfavorable) change in revenues | 123 | (353 | ) | |||||
Favorable/(Unfavorable) changes: | ||||||||
Nonrecurrence of 2016 impairment on remeasurement of HIS net assets and lower loss on sale of HIS(a) | 1,434 | 1,369 | ||||||
Lower Cost of sales(b) | 238 | 1,130 | ||||||
Lower certain asset impairments(a) | 3 | 937 | ||||||
Lower Restructuring charges and certain acquisition-related costs(c) | 381 | 611 | ||||||
(Higher)/lower certain legal matters, net(a) | (223 | ) | 300 | |||||
Higher net gains on asset disposals(a) | 108 | 268 | ||||||
Higher dividend income(a) | 54 | 204 | ||||||
Lower Selling, information and administrative expenses(d) | 59 | 181 | ||||||
Lower business and legal entity alignment costs(a) | 53 | 126 | ||||||
Higher Amortization of intangible assets(e) | (209 | ) | (637 | ) | ||||
Lower royalty-related income(a) | (93 | ) | (363 | ) | ||||
All other items, net | 52 | 4 | ||||||
Income from continuing operations before provision for taxes on income, for the three months and nine months ended October 1, 2017 | $ | 3,585 | $ | 11,351 |
- - - - - - - Several OTC consumer healthcare products (e.g., | - - - - Several sterile injectable products |
The following presents worldwide revenues by geography: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | U.S. | International | World-wide | U.S. | Inter-national | |||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | % Change in Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating segments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biopharma | $ | 22,319 | $ | 23,513 | $ | 13,748 | $ | 6,899 | $ | 8,571 | $ | 16,614 | (5) | 99 | (48) | |||||||||||||||||||||||||||||||||||||||||
Pfizer CentreOne | 319 | 521 | 103 | 121 | 216 | 400 | (39) | (15) | (46) | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 22,638 | $ | 24,035 | $ | 13,851 | $ | 7,020 | $ | 8,786 | $ | 17,014 | (6) | 97 | (48) | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | U.S. | International | World-wide | U.S. | Inter-national | |||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS) | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | Oct. 2, 2022 | Oct. 3, 2021 | % Change in Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating segments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Biopharma | $ | 75,066 | $ | 56,101 | $ | 33,700 | $ | 21,657 | $ | 41,366 | $ | 34,444 | 34 | 56 | 20 | |||||||||||||||||||||||||||||||||||||||||
Pfizer CentreOne | 974 | 1,348 | 291 | 409 | 683 | 939 | (28) | (29) | (27) | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 76,040 | $ | 57,450 | $ | 33,991 | $ | 22,066 | $ | 42,049 | $ | 35,384 | 32 | 54 | 19 |
The following tables provide worldwide revenues by operating segment and by geography: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Worldwide | U.S. | International | World-wide | U.S. | Inter-national | ||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | % Change in Revenues | ||||||||||||||||||||||||||
Operating Segments(a): | |||||||||||||||||||||||||||||||||
IH | $ | 8,118 | $ | 7,332 | $ | 4,777 | $ | 4,244 | $ | 3,341 | $ | 3,088 | 11 | 13 | 8 | ||||||||||||||||||
EH | 5,050 | 5,712 | 1,756 | 2,286 | 3,294 | 3,426 | (12 | ) | (23 | ) | (4 | ) | |||||||||||||||||||||
Total revenues | $ | 13,168 | $ | 13,045 | $ | 6,534 | $ | 6,530 | $ | 6,634 | $ | 6,515 | 1 | — | 2 | ||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Worldwide | U.S. | International | World-wide | U.S. | Inter-national | ||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | % Change in Revenues | ||||||||||||||||||||||||||
Operating Segments(a): | |||||||||||||||||||||||||||||||||
IH | $ | 23,204 | $ | 21,471 | $ | 13,708 | $ | 12,308 | $ | 9,496 | $ | 9,163 | 8 | 11 | 4 | ||||||||||||||||||
EH | 15,639 | 17,725 | 5,808 | 7,253 | 9,831 | 10,472 | (12 | ) | (20 | ) | (6 | ) | |||||||||||||||||||||
Total revenues | $ | 38,843 | $ | 39,196 | $ | 19,516 | $ | 19,561 | $ | 19,327 | $ | 19,636 | (1 | ) | — | (2 | ) |
The following provides an analysis of the change in worldwide revenues by geographic areas in the third quarter of 2022: | ||||||||||||||||||||
Three Months Ended October 2, 2022 | ||||||||||||||||||||
(MILLIONS) | Worldwide | U.S. | International | |||||||||||||||||
Operational growth/(decline): | ||||||||||||||||||||
Worldwide declines from Comirnaty, Xeljanz and Ibrance, partially offset by worldwide growth from Paxlovid, Eliquis, Prevnar family, Vyndaqel/Vyndamax, Xtandi and Inlyta(a) | $ | (226) | $ | 6,849 | $ | (7,075) | ||||||||||||||
Decline from PC1(a) | (180) | (18) | (162) | |||||||||||||||||
Lower revenues for Sutent, primarily reflecting lower volume demand in Europe following its loss of exclusivity in January 2022 | (61) | (4) | (57) | |||||||||||||||||
Other operational factors, net | 26 | 4 | 22 | |||||||||||||||||
Operational growth/(decline), net | (441) | 6,831 | (7,272) | |||||||||||||||||
Unfavorable impact of foreign exchange | (957) | — | (957) | |||||||||||||||||
Revenues increase/(decrease) | $ | (1,397) | $ | 6,831 | $ | (8,228) |
The following provides an analysis of the change in revenues by geographic areas in the third quarter of 2017: | ||||||||||||
(MILLIONS OF DOLLARS) | Three Months Ended October 1, 2017 | |||||||||||
Worldwide | U.S. | International | ||||||||||
Disposition-related operational impact: | ||||||||||||
Financial results in the third quarter of 2017 do not reflect any contribution from HIS global operations, compared to the inclusion of three months of HIS global operations in the same period in 2016 (February 2017 sale) | $ | (280 | ) | $ | (220 | ) | $ | (60 | ) | |||
Other operational growth/(decline): | ||||||||||||
Continued growth from key brands including Ibrance and Eliquis globally, as well as Lyrica (IH) and Xeljanz, both primarily in the U.S. | 751 | 460 | 291 | |||||||||
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) | 148 | 148 | — | |||||||||
Growth from Biosimilars | 55 | 34 | 21 | |||||||||
Decline from Peri-LOE Products, including declines in Pristiq in the U.S., which lost marketing exclusivity in the U.S. in March 2017, as well as Lyrica (EH) and Vfend, both primarily in developed Europe markets | (220 | ) | (103 | ) | (117 | ) | ||||||
Decline from the Sterile Injectable Pharmaceuticals portfolio, primarily due to legacy Hospira product shortages in the U.S. | (182 | ) | (196 | ) | 14 | |||||||
Lower revenues for Viagra (IH) in the U.S. primarily due to wholesaler destocking in advance of anticipated generic competition beginning in December 2017 | (91 | ) | (91 | ) | — | |||||||
Lower revenues for Enbrel, primarily in most developed Europe markets due to continued biosimilar competition | (89 | ) | — | (89 | ) | |||||||
Decline in Prevnar 13/Prevenar 13 revenues. U.S. revenues decreased primarily due to the continued decline in revenues for the Adult indication due to a smaller remaining “catch up” opportunity compared to the prior-year quarter, partially offset by growth from the pediatric indication. International revenues increased primarily due to the favorable overall impact of timing of government purchases in certain emerging markets and the launch of Prevenar 13 in China for the pediatric indication. | (16 | ) | (40 | ) | 24 | |||||||
Other operational factors, net | 102 | 12 | 89 | |||||||||
Operational growth, net | 178 | 4 | 174 | |||||||||
Unfavorable impact of foreign exchange | (54 | ) | — | (54 | ) | |||||||
Revenues increase | $ | 123 | $ | 4 | $ | 120 |
The following provides an analysis of the worldwide change in revenues by geographic areas in the first nine months of 2022: | ||||||||||||||||||||
Nine Months Ended October 2, 2022 | ||||||||||||||||||||
(MILLIONS) | Worldwide | U.S. | International | |||||||||||||||||
Operational growth/(decline): | ||||||||||||||||||||
Worldwide growth from Paxlovid, Comirnaty, Eliquis, Prevnar family, Vyndaqel/Vyndamax and Inlyta, partially offset by worldwide declines from Xeljanz and Ibrance(a) | $ | 22,507 | $ | 12,440 | $ | 10,066 | ||||||||||||||
Decline from PC1(a) | (332) | (118) | (214) | |||||||||||||||||
Lower revenues for Chantix/Champix and Sutent: •The decrease in Chantix/Champix was driven by the ongoing global pause in shipments of Chantix due to the presence of N-nitroso-varenicline above an acceptable level of intake set by various global regulators, the ultimate timing for resolution of which may vary by country •The decrease for Sutent primarily reflects lower volume demand in Europe and the U.S. following its loss of exclusivity in January 2022 and August 2021, respectively | (632) | (386) | (246) | |||||||||||||||||
Other operational factors, net | 42 | (11) | 53 | |||||||||||||||||
Operational growth/(decline), net | 21,585 | 11,925 | 9,659 | |||||||||||||||||
Unfavorable impact of foreign exchange | (2,995) | — | (2,995) | |||||||||||||||||
Revenues increase/(decrease) | $ | 18,590 | $ | 11,925 | $ | 6,665 |
The following provides an analysis of the change in revenues by geographic areas in the first nine months of 2017: | ||||||||||||
(MILLIONS OF DOLLARS) | Nine Months Ended October 1, 2017 | |||||||||||
Worldwide | U.S. | International | ||||||||||
Disposition-related operational impact: | ||||||||||||
Approximately one month of HIS domestic operations and approximately two months of HIS international operations in the first nine months of 2017, compared to nine months of HIS global operations in the same period in 2016 (February 2017 sale) | $ | (783 | ) | $ | (626 | ) | $ | (158 | ) | |||
Other operational growth/(decline): | ||||||||||||
Continued growth from key brands including Ibrance and Eliquis globally, as well as Lyrica (IH) and Xeljanz, both primarily in the U.S. | 2,102 | 1,404 | 698 | |||||||||
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) | 420 | 420 | — | |||||||||
Growth from Biosimilars | 143 | 74 | 69 | |||||||||
Decline from Peri-LOE Products, including declines in Pristiq in the U.S., which lost marketing exclusivity in the U.S. in March 2017, as well as Lyrica (EH) and Vfend, both primarily in developed Europe markets | (779 | ) | (342 | ) | (437 | ) | ||||||
Lower revenues for Enbrel, primarily in most developed Europe markets due to continued biosimilar competition | (353 | ) | — | (353 | ) | |||||||
Decline in the Legacy Established Products portfolio | (250 | ) | (314 | ) | 64 | |||||||
Decline in Prevnar 13/Prevenar 13 revenues. U.S. revenues decreased primarily due to the continued decline in revenues for the Adult indication due to a smaller remaining “catch up” opportunity compared to the first nine months of 2016, partially offset by growth from the pediatric indication. International revenues increased primarily due to the favorable overall impact of timing of government purchases in certain emerging markets and the launch of Prevenar 13 in China for the pediatric indication. | (213 | ) | (256 | ) | 44 | |||||||
Decline in Viagra (IH) revenues mainly in the U.S. primarily due to lower market growth | (186 | ) | (186 | ) | (1 | ) | ||||||
Decline from the Sterile Injectable Pharmaceuticals portfolio, primarily due to legacy Hospira product shortages in the U.S. | (169 | ) | (253 | ) | 84 | |||||||
Other operational factors, net | 87 | 33 | 54 | |||||||||
Operational growth (decline), net | 19 | (45 | ) | 64 | ||||||||
Unfavorable impact of foreign exchange | (372 | ) | — | (372 | ) | |||||||
Revenues decrease | $ | (353 | ) | $ | (45 | ) | $ | (308 | ) |
The following presents information about revenue deductions: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | October 2, 2022 | October 3, 2021 | ||||||||||||||||||||||
Medicare rebates | $ | 195 | $ | 175 | $ | 582 | $ | 546 | ||||||||||||||||||
Medicaid and related state program rebates | 223 | 252 | 689 | 904 | ||||||||||||||||||||||
Performance-based contract rebates | 851 | 883 | 2,518 | 2,424 | ||||||||||||||||||||||
Chargebacks | 1,946 | 1,618 | 5,480 | 4,567 | ||||||||||||||||||||||
Sales allowances | 1,334 | 1,216 | 3,905 | 3,569 | ||||||||||||||||||||||
Sales returns and cash discounts | 247 | 267 | 845 | 726 | ||||||||||||||||||||||
Total | $ | 4,796 | $ | 4,411 | $ | 14,019 | $ | 12,737 |
The following table provides information about revenue deductions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Medicare rebates(a) | $ | 355 | $ | 285 | $ | 931 | $ | 777 | ||||||||
Medicaid and related state program rebates(a) | 439 | 338 | 1,335 | 1,073 | ||||||||||||
Performance-based contract rebates(a), (b) | 773 | 629 | 2,321 | 1,854 | ||||||||||||
Chargebacks(c) | 1,608 | 1,465 | 4,585 | 4,318 | ||||||||||||
Sales allowances(d) | 1,419 | 1,177 | 3,718 | 3,268 | ||||||||||||
Sales returns and cash discounts | 329 | 356 | 1,025 | 1,044 | ||||||||||||
Total(e) | $ | 4,923 | $ | 4,251 | $ | 13,916 | $ | 12,334 |
The following table provides revenue information for several of our major products. As described in Note 1A, acquisitions and divestitures have impacted our results of operations in 2017 and 2016. | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | % Change(a) | % Change(a) | ||||||||||||||||||||
PRODUCT | PRIMARY INDICATIONS OR CLASS | Oct 1, 2017 | Total | Oper. | Oct 1, 2017 | Total | Oper. | |||||||||||||||
TOTAL REVENUES | $ | 13,168 | 1 | 1 | $ | 38,843 | (1 | ) | — | |||||||||||||
PFIZER INNOVATIVE HEALTH (IH)(b) | $ | 8,118 | 11 | 11 | $ | 23,204 | 8 | 9 | ||||||||||||||
Internal Medicine | $ | 2,455 | 9 | 10 | $ | 7,245 | 10 | 11 | ||||||||||||||
Lyrica IH(c) | Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury | 1,150 | 10 | 11 | 3,382 | 9 | 9 | |||||||||||||||
Eliquis alliance revenues and direct sales | Atrial fibrillation, deep vein thrombosis, pulmonary embolism | 644 | 43 | 43 | 1,813 | 48 | 49 | |||||||||||||||
Chantix/Champix | An aid to smoking cessation treatment in adults 18 years of age or older | 240 | 21 | 22 | 727 | 15 | 15 | |||||||||||||||
Viagra IH(d) | Erectile dysfunction | 206 | (31 | ) | (31 | ) | 711 | (21 | ) | (21 | ) | |||||||||||
BMP2 | Development of bone and cartilage | 79 | 24 | 24 | 198 | 13 | 13 | |||||||||||||||
Toviaz | Overactive bladder | 62 | 4 | 5 | 187 | (2 | ) | — | ||||||||||||||
All other Internal Medicine | Various | 75 | (41 | ) | (41 | ) | 228 | (31 | ) | (31 | ) | |||||||||||
Vaccines | $ | 1,649 | 1 | — | $ | 4,385 | (4 | ) | (4 | ) | ||||||||||||
Prevnar 13/Prevenar 13 | Vaccines for prevention of pneumococcal disease | 1,522 | (1 | ) | (1 | ) | 4,069 | (5 | ) | (5 | ) | |||||||||||
FSME/IMMUN-TicoVac | Tick-borne encephalitis vaccine | 43 | 31 | 29 | 119 | 17 | 19 | |||||||||||||||
All other Vaccines | Various | 85 | 17 | 16 | 197 | 14 | 17 | |||||||||||||||
Oncology | $ | 1,616 | 46 | 46 | $ | 4,551 | 42 | 43 | ||||||||||||||
Ibrance | Advanced breast cancer | 878 | 60 | 59 | 2,410 | 61 | 62 | |||||||||||||||
Sutent | Advanced and/or metastatic RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor | 276 | 6 | 6 | 805 | (2 | ) | (1 | ) | |||||||||||||
Xalkori | ALK-positive and ROS1-positive advanced NSCLC | 146 | 4 | 4 | 442 | 6 | 8 | |||||||||||||||
Xtandi alliance revenues | Advanced prostate cancer | 150 | * | * | 422 | * | * | |||||||||||||||
Inlyta | Advanced RCC | 84 | (12 | ) | (10 | ) | 256 | (16 | ) | (14 | ) | |||||||||||
Bosulif | Philadelphia chromosome–positive chronic myelogenous leukemia | 57 | 34 | 35 | 163 | 35 | 36 | |||||||||||||||
All other Oncology | Various | 26 | 74 | 76 | 54 | 10 | 11 | |||||||||||||||
Inflammation & Immunology (I&I) | $ | 1,000 | 4 | 4 | $ | 2,863 | (1 | ) | — | |||||||||||||
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 | 613 | (13 | ) | (13 | ) | 1,818 | (17 | ) | (16 | ) | |||||||||||
Xeljanz | Rheumatoid arthritis | 348 | 48 | 49 | 935 | 44 | 44 | |||||||||||||||
Eucrisa | Mild to moderate atopic dermatitis (eczema) | 15 | * | * | 33 | * | * | |||||||||||||||
All other I&I | Various | 23 | (3 | ) | 1 | 78 | 35 | 36 | ||||||||||||||
Rare Disease | $ | 569 | (3 | ) | (3 | ) | $ | 1,637 | (7 | ) | (6 | ) | ||||||||||
BeneFIX | Hemophilia | 151 | (14 | ) | (14 | ) | 453 | (17 | ) | (16 | ) | |||||||||||
Refacto AF/Xyntha | Hemophilia | 140 | — | (1 | ) | 409 | — | 3 | ||||||||||||||
Genotropin | Replacement of human growth hormone | 136 | (7 | ) | (6 | ) | 375 | (12 | ) | (10 | ) | |||||||||||
Somavert | Acromegaly | 65 | 11 | 10 | 182 | 6 | 7 | |||||||||||||||
All other Rare Disease | Various | 77 | 21 | 21 | 218 | (1 | ) | 1 | ||||||||||||||
Consumer Healthcare | $ | 829 | 4 | 4 | $ | 2,522 | 3 | 3 | ||||||||||||||
PFIZER ESSENTIAL HEALTH (EH)(e) | $ | 5,050 | (12 | ) | (11 | ) | $ | 15,639 | (12 | ) | (11 | ) | ||||||||||
Legacy Established Products (LEP)(f) | $ | 2,681 | (1 | ) | — | $ | 7,995 | (5 | ) | (3 | ) | |||||||||||
Lipitor | Reduction of LDL cholesterol | 491 | 16 | 18 | 1,341 | 4 | 6 | |||||||||||||||
Premarin family | Symptoms of menopause | 238 | (2 | ) | (2 | ) | 711 | (5 | ) | (5 | ) | |||||||||||
Norvasc | Hypertension | 226 | (5 | ) | (3 | ) | 684 | (4 | ) | (1 | ) | |||||||||||
EpiPen | Epinephrine injection used in treatment of life-threatening allergic reactions | 82 | (25 | ) | (25 | ) | 253 | (16 | ) | (15 | ) | |||||||||||
Xalatan/Xalacom | Glaucoma and ocular hypertension | 83 | (9 | ) | (8 | ) | 241 | (12 | ) | (12 | ) | |||||||||||
Effexor | Depression and certain anxiety disorders | 76 | 8 | 9 | 215 | 4 | 5 | |||||||||||||||
Zoloft | Depression and certain anxiety disorders | 78 | 9 | 11 | 215 | (6 | ) | (4 | ) | |||||||||||||
Zithromax | Bacterial infections | 61 | 10 | 11 | 202 | (1 | ) | 3 | ||||||||||||||
Relpax | Symptoms of migraine headache | 50 | (39 | ) | (39 | ) | 193 | (22 | ) | (22 | ) | |||||||||||
Xanax | Anxiety disorders | 58 | 5 | 4 | 164 | 1 | 2 | |||||||||||||||
All other LEP | Various | 1,237 | (2 | ) | (1 | ) | 3,776 | (5 | ) | (4 | ) | |||||||||||
Sterile Injectable Pharmaceuticals (SIP)(g) | $ | 1,273 | (13 | ) | (12 | ) | $ | 4,270 | (5 | ) | (4 | ) | ||||||||||
Medrol | Steroid anti-inflammatory | 109 | 7 | 7 | 352 | 7 | 7 | |||||||||||||||
Sulperazon | Treatment of infections | 114 | 11 | 13 | 345 | 14 | 18 | |||||||||||||||
Fragmin | Slows blood clotting | 79 | (1 | ) | (1 | ) | 221 | (8 | ) | (6 | ) | |||||||||||
Tygacil | Tetracycline class antibiotic | 60 | (12 | ) | (12 | ) | 192 | (5 | ) | (5 | ) | |||||||||||
Precedex | Sedation agent in surgery or intensive care | 51 | (21 | ) | (20 | ) | 182 | (8 | ) | (9 | ) | |||||||||||
All other SIP | Various | 860 | (18 | ) | (17 | ) | 2,977 | (7 | ) | (6 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | % Change(a) | % Change(a) | ||||||||||||||||||||
PRODUCT | PRIMARY INDICATIONS OR CLASS | Oct 1, 2017 | Total | Oper. | Oct 1, 2017 | Total | Oper. | |||||||||||||||
Peri-LOE Products(h) | $ | 794 | (22 | ) | (22 | ) | $ | 2,398 | (26 | ) | (24 | ) | ||||||||||
Celebrex | Arthritis pain and inflammation, acute pain | 212 | 9 | 11 | 564 | 3 | 4 | |||||||||||||||
Lyrica EH(c) | Epilepsy, neuropathic pain and generalized anxiety disorder | 134 | (30 | ) | (31 | ) | 428 | (31 | ) | (29 | ) | |||||||||||
Vfend | Fungal infections | 97 | (31 | ) | (29 | ) | 305 | (33 | ) | (32 | ) | |||||||||||
Viagra EH(d) | Erectile dysfunction | 102 | 14 | 16 | 285 | — | 3 | |||||||||||||||
Pristiq | Depression | 69 | (61 | ) | (61 | ) | 230 | (58 | ) | (58 | ) | |||||||||||
Zyvox | Bacterial infections | 68 | (28 | ) | (27 | ) | 220 | (34 | ) | (33 | ) | |||||||||||
Revatio | Pulmonary arterial hypertension | 58 | (20 | ) | (20 | ) | 189 | (11 | ) | (11 | ) | |||||||||||
All other Peri-LOE Products | Various | 55 | (19 | ) | (17 | ) | 176 | (17 | ) | (15 | ) | |||||||||||
Biosimilars(i) | Various | $ | 141 | 70 | 67 | $ | 367 | 61 | 63 | |||||||||||||
Inflectra/Remsima | Inflammatory diseases | 112 | * | * | 284 | * | * | |||||||||||||||
All other Biosimilars | Various | 28 | (16 | ) | (18 | ) | 82 | (15 | ) | (14 | ) | |||||||||||
Pfizer CentreOne(j) | $ | 161 | 3 | 3 | $ | 514 | (5 | ) | (5 | ) | ||||||||||||
Hospira Infusion Systems (HIS)(k) | Various | $ | — | * | * | $ | 97 | (89 | ) | (89 | ) | |||||||||||
Total Lyrica(c) | Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury | $ | 1,285 | 4 | 5 | $ | 3,810 | 2 | 3 | |||||||||||||
Total Viagra(d) | Erectile dysfunction | $ | 308 | (20 | ) | (20 | ) | $ | 996 | (16 | ) | (15 | ) | |||||||||
Total Alliance revenues | Various | $ | 741 | 77 | 78 | $ | 2,112 | 83 | 84 |
(MILLIONS) | Revenue | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Product | Period | Global Revenues | Region | Oct. 2, 2022 | Oct. 3, 2021 | Total | Oper. | Operational Results Commentary | ||||||||||||||||||||||||||||||||||||||||||
Comirnaty(a) | QTD | $4,402 Down 65% (operationally) | U.S. | $ | 2,908 | $ | 1,586 | 83 | QTD declines largely driven by a previously announced amendment to the supply agreement with the EC whereby all doses scheduled for delivery in June through August 2022 would instead be delivered in the fourth quarter of 2022 and similar shifts in scheduled deliveries to other developed countries, as well as slower demand in emerging markets. Declines were partially offset by growth in the U.S., driven primarily by deliveries of the Omicron BA.4/BA.5-adapted bivalent booster, following its EUA in late-August 2022, as well as the granting of an EUA in June 2022 for a primary vaccination series for children 6 months to less than 5 years of age. YTD performance was largely driven by operational growth in international markets, led by increased sales of doses to serve emerging markets and increased deliveries to certain international developed markets in the first six months of 2022, as well as the granting of an EUA in the U.S. in October 2021 for a primary vaccination series for children 5 to 11 years of age and QTD U.S. growth drivers noted above, partially offset by QTD declines noted above. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 1,494 | 11,391 | (87) | (86) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 4,402 | $ | 12,977 | (66) | (65) | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $26,477 Up 14% (operationally) | U.S. | $ | 6,303 | $ | 5,657 | 11 | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 20,174 | 18,619 | 8 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 26,477 | $ | 24,277 | 9 | 14 | ||||||||||||||||||||||||||||||||||||||||||||
Paxlovid | QTD | $7,514 * | U.S. | $ | 5,044 | $ | — | * | Driven by the U.S. launch under EUA in December 2021 and international launches in late 2021 and early 2022 following regulatory approvals or EUAs. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 2,470 | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 7,514 | $ | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $17,099 * | U.S. | $ | 10,514 | $ | — | * | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 6,584 | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 17,099 | $ | — | * | * | ||||||||||||||||||||||||||||||||||||||||||||
Eliquis | QTD | $1,464 Up 15% (operationally) | U.S. | $ | 835 | $ | 629 | 33 | Growth driven primarily by continued oral anti-coagulant adoption and market share gains in non-valvular atrial fibrillation in the U.S., as well as favorable changes in channel mix in the U.S., partially offset by declines in certain emerging markets. In addition, YTD performance was impacted by growth in oral anti-coagulant adoption and market share gains in certain markets in Europe, partially offset by the non-recurrence of an $80 million favorable adjustment related to the Medicare “coverage gap” provision recorded in the first quarter of 2021 in the U.S. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 628 | 717 | (12) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,464 | $ | 1,346 | 9 | 15 | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $5,001 Up 16% (operationally) | U.S. | $ | 2,979 | $ | 2,440 | 22 | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 2,022 | 2,030 | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 5,001 | $ | 4,470 | 12 | 16 | ||||||||||||||||||||||||||||||||||||||||||||
Prevnar family | QTD | $1,607 Up 14% (operationally) | U.S. | $ | 1,089 | $ | 850 | 28 | Growth primarily driven by the adult indications in the U.S. due to strong patient demand following the launch of Prevnar 20 for the eligible adult population, partially offset by unfavorable timing of government and private purchasing of Prevnar 13 for the pediatric indication globally and adult indication internationally. YTD growth was partially offset by competitive pressures in China for the pediatric indication. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 517 | 596 | (13) | (7) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,607 | $ | 1,447 | 11 | 14 | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $4,601 Up 18% (operationally) | U.S. | $ | 3,010 | $ | 2,130 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 1,591 | 1,841 | (14) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 4,601 | $ | 3,971 | 16 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Ibrance | QTD | $1,283 Down 3% (operationally) | U.S. | $ | 872 | $ | 883 | (1) | Global declines primarily driven by prior-year clinical trial purchases internationally, planned price decreases that recently went into effect in international developed markets, and continued increase in the proportion of patients accessing Ibrance through the U.S. Patient Assistance Program. YTD declines were partially offset by higher volumes in emerging markets. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 411 | 498 | (17) | (6) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,283 | $ | 1,381 | (7) | (3) | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $3,841 Down 2% (operationally) | U.S. | $ | 2,493 | $ | 2,539 | (2) | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 1,347 | 1,500 | (10) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 3,841 | $ | 4,039 | (5) | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Vyndaqel/ Vyndamax | QTD | $602 Up 29% (operationally) | U.S. | $ | 329 | $ | 228 | 44 | Growth largely driven by continued strong uptake of the ATTR-CM indication, primarily in developed Europe and the U.S., partially offset by a planned price decrease that went into effect in Japan in the second quarter of 2022. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 273 | 273 | — | 15 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 602 | $ | 501 | 20 | 29 | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $1,766 Up 28% (operationally) | U.S. | $ | 890 | $ | 658 | 35 | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 876 | 796 | 10 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,766 | $ | 1,454 | 21 | 28 | ||||||||||||||||||||||||||||||||||||||||||||
Xeljanz | QTD | $502 Down 14% (operationally) | U.S. | $ | 345 | $ | 410 | (16) | Declines driven primarily by decreased prescription volumes globally resulting from ongoing shifts in prescribing patterns related to JAK class label changes. In addition, YTD was impacted by declines in net price due to unfavorable changes in channel mix and unfavorable wholesaler inventory buying patterns in the U.S. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 157 | 201 | (22) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 502 | $ | 610 | (18) | (14) | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $1,304 Down 22% (operationally) | U.S. | $ | 802 | $ | 1,132 | (29) | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 502 | 602 | (17) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,304 | $ | 1,734 | (25) | (22) |
(MILLIONS) | Revenue | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Product | Period | Global Revenues | Region | Oct. 2, 2022 | Oct. 3, 2021 | Total | Oper. | Operational Results Commentary | ||||||||||||||||||||||||||||||||||||||||||
Xtandi | QTD | $320 Up 3% (operationally) | U.S. | $ | 320 | $ | 309 | 3 | Performance largely due to steady demand growth across the mCRPC, nmCRPC, and mCSPC indications. YTD demand growth was offset largely by unfavorable changes in channel mix and fluctuating enrollment rates in the Xtandi Patient Assistance Program. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 320 | $ | 309 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $878 Flat (operationally) | U.S. | $ | 878 | $ | 879 | — | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 878 | $ | 879 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Inlyta | QTD | $252 Up 3% (operationally) | U.S. | $ | 152 | $ | 151 | — | Growth primarily reflects continued adoption in emerging markets of combinations of certain immune checkpoint inhibitors and Inlyta for the first-line treatment of patients with advanced RCC. YTD growth also driven by continued adoption in developed Europe. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 100 | 104 | (4) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 252 | $ | 256 | (1) | 3 | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $760 Up 6% (operationally) | U.S. | $ | 454 | $ | 448 | 1 | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 306 | 294 | 4 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 760 | $ | 742 | 2 | 6 |
(MILLIONS) | Revenue | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment | Period | Global Revenues | Region | Oct. 2, 2022 | Oct. 3, 2021 | Total | Oper. | Operational Results Commentary | ||||||||||||||||||||||||||||||||||||||||||
PC1 | QTD | $319 Down 35% (operationally) | U.S. | $ | 103 | $ | 121 | (15) | Declines primarily driven by lower COVID-19 manufacturing activities performed on behalf of customers, including Comirnaty supply to BioNTech, and lower manufacturing of divested products under manufacturing and supply agreements. | |||||||||||||||||||||||||||||||||||||||||
Int’l. | 216 | 400 | (46) | (40) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 319 | $ | 521 | (39) | (35) | ||||||||||||||||||||||||||||||||||||||||||||
YTD | $974 Down 25% (operationally) | U.S. | $ | 291 | $ | 409 | (29) | |||||||||||||||||||||||||||||||||||||||||||
Int’l. | 683 | 939 | (27) | (23) | ||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 974 | $ | 1,348 | (28) | (25) |
Costs and expenses follow: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 6,063 | $ | 9,932 | (39) | $ | 24,696 | $ | 21,085 | 17 | ||||||||||||||||||||||||||||
Percentage of Revenues | 26.8 | % | 41.3 | % | 32.5 | % | 36.7 | % | ||||||||||||||||||||||||||||||
Selling, informational and administrative expenses | 3,391 | 2,899 | 17 | 9,032 | 8,599 | 5 | ||||||||||||||||||||||||||||||||
Research and development expenses | 2,696 | 2,681 | 1 | 7,813 | 6,914 | 13 | ||||||||||||||||||||||||||||||||
Acquired in-process research and development expenses | 524 | 762 | (31) | 880 | 1,000 | (12) | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 822 | 968 | (15) | 2,478 | 2,743 | (10) | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 199 | 646 | (69) | 580 | 667 | (13) | ||||||||||||||||||||||||||||||||
Other (income)/deductions—net | (59) | (1,696) | (97) | 1,063 | (4,043) | * | ||||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
Cost of sales | $ | 2,847 | $ | 3,085 | (8 | ) | $ | 7,980 | $ | 9,111 | (12 | ) | ||||||||||
As a percentage of Revenues | 21.6 | % | 23.6 | % | 20.5 | % | 23.2 | % |
•an unfavorable impact of $3.4 billion due to increased sales of Comirnaty, which includes a charge for the 50% gross profit split with BioNTech and applicable royalty expenses; •an increase of $1.8 billion for Paxlovid, which includes the charge of $400 million discussed above; and •a $450 million write off of |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
Selling, informational and administrative expenses | $ | 3,500 | $ | 3,559 | (2 | ) | $ | 10,233 | $ | 10,414 | (2 | ) | ||||||||||
As a percentage of Revenues | 26.6 | % | 27.3 | % | 26.3 | % | 26.6 | % |
•an increase of $300 million for marketing and promotional expenses for recently launched products, partially offset by: •a decrease of $270 million in our liability to be paid to participants of our supplemental savings plan; and •a $244 million |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
Research and development expenses | $ | 1,859 | $ | 1,881 | (1 | ) | $ | 5,346 | $ | 5,360 | — | |||||||||||
As a percentage of Revenues | 14.1 | % | 14.4 | % | 13.8 | % | 13.7 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||
Amortization of intangible assets | $ | 1,177 | $ | 968 | 22 | $ | 3,571 | $ | 2,934 | 22 | ||||||||||
As a percentage of Revenues | 8.9 | % | 7.4 | % | 9.2 | % | 7.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||||
Restructuring charges | $ | 91 | $ | 404 | (77 | ) | $ | 150 | $ | 574 | (74 | ) | ||||||||||
Transaction costs | (14 | ) | 54 | * | 4 | 114 | (97 | ) | ||||||||||||||
Integration costs | 73 | 74 | (1 | ) | 224 | 300 | (26 | ) | ||||||||||||||
Restructuring charges and certain acquisition-related costs | 149 | 531 | (72 | ) | 377 | 988 | (62 | ) | ||||||||||||||
Total additional depreciation—asset restructuring | 39 | 47 | (17 | ) | 74 | 151 | (51 | ) | ||||||||||||||
Total implementation costs | 57 | 78 | (27 | ) | 150 | 202 | (26 | ) | ||||||||||||||
Costs associated with acquisitions and cost-reduction/productivity initiatives(a) | $ | 245 | $ | 655 | (63 | ) | $ | 601 | $ | 1,341 | (55 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | |||||||||||||||
Other (income)/deductions––net | $ | 51 | $ | 1,417 | (96 | )% | $ | (16 | ) | $ | 2,815 | * |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | $ | 356 | $ | (328) | * | $ | 3,098 | $ | 1,603 | 93 | ||||||||||||||||||||||||||||
Effective tax rate on continuing operations | 4.0 | % | (4.2) | % | 10.5 | % | 7.8 | % | ||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | October 1, 2017 | October 2, 2016 | % Change | ||||||||||||||
Provision for taxes on income | $ | 727 | $ | 249 | * | $ | 2,287 | $ | 1,109 | * | ||||||||||
Effective tax rate on continuing operations | 20.3 | % | 15.5 | % | 20.1 | % | 14.6 | % |
Costs and expenses follow: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 6,063 | $ | 9,932 | (39) | $ | 24,696 | $ | 21,085 | 17 | ||||||||||||||||||||||||||||
Percentage of Revenues | 26.8 | % | 41.3 | % | 32.5 | % | 36.7 | % | ||||||||||||||||||||||||||||||
Selling, informational and administrative expenses | 3,391 | 2,899 | 17 | 9,032 | 8,599 | 5 | ||||||||||||||||||||||||||||||||
Research and development expenses | 2,696 | 2,681 | 1 | 7,813 | 6,914 | 13 | ||||||||||||||||||||||||||||||||
Acquired in-process research and development expenses | 524 | 762 | (31) | 880 | 1,000 | (12) | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 822 | 968 | (15) | 2,478 | 2,743 | (10) | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 199 | 646 | (69) | 580 | 667 | (13) | ||||||||||||||||||||||||||||||||
Other (income)/deductions—net | (59) | (1,696) | (97) | 1,063 | (4,043) | * | ||||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. |
Three Months Ended October 1, 2017 | ||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported | Purchase Accounting Adjustments(a) | Acquisition-Related Costs(a) | Discontinued Operations(a) | Certain Significant Items(a) | Non-GAAP Adjusted | ||||||||||||||||||
Revenues | $ | 13,168 | $ | — | $ | — | $ | — | $ | — | $ | 13,168 | ||||||||||||
Cost of sales | 2,847 | (28 | ) | (26 | ) | — | (92 | ) | 2,699 | |||||||||||||||
Selling, informational and administrative expenses | 3,500 | — | — | — | (22 | ) | 3,478 | |||||||||||||||||
Research and development expenses | 1,859 | 1 | — | — | (9 | ) | 1,851 | |||||||||||||||||
Amortization of intangible assets | 1,177 | (1,120 | ) | — | — | — | 57 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 149 | — | (129 | ) | — | (21 | ) | — | ||||||||||||||||
Other (income)/deductions––net | 51 | (7 | ) | — | — | (305 | ) | (261 | ) | |||||||||||||||
Income from continuing operations before provision for taxes on income | 3,585 | 1,154 | 155 | — | 449 | 5,343 | ||||||||||||||||||
Provision for taxes on income(b) | 727 | 306 | 72 | — | 161 | 1,267 | ||||||||||||||||||
Income from continuing operations | 2,858 | 848 | 83 | — | 288 | 4,077 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | — | — | ||||||||||||||||||
Net income attributable to noncontrolling interests | 18 | — | — | — | — | 18 | ||||||||||||||||||
Net income attributable to Pfizer Inc. | 2,840 | 848 | 83 | — | 288 | 4,059 | ||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted | 0.47 | 0.14 | 0.01 | — | 0.05 | 0.67 |
Nine Months Ended October 1, 2017 | ||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported | Purchase Accounting Adjustments(a) | Acquisition-Related Costs(a) | Discontinued Operations(a) | Certain Significant Items(a) | Non-GAAP Adjusted | ||||||||||||||||||
Revenues | $ | 38,843 | $ | — | $ | — | $ | — | $ | — | $ | 38,843 | ||||||||||||
Cost of sales | 7,980 | (45 | ) | (38 | ) | — | (168 | ) | 7,729 | |||||||||||||||
Selling, informational and administrative expenses | 10,233 | (15 | ) | — | — | (67 | ) | 10,151 | ||||||||||||||||
Research and development expenses | 5,346 | 7 | — | — | (26 | ) | 5,326 | |||||||||||||||||
Amortization of intangible assets | 3,571 | (3,438 | ) | — | — | — | 133 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 377 | — | (309 | ) | — | (68 | ) | — | ||||||||||||||||
Other (income)/deductions––net | (16 | ) | (35 | ) | — | — | (468 | ) | (519 | ) | ||||||||||||||
Income from continuing operations before provision for taxes on income | 11,351 | 3,527 | 347 | — | 797 | 16,023 | ||||||||||||||||||
Provision for taxes on income(b) | 2,287 | 990 | 137 | — | 263 | 3,677 | ||||||||||||||||||
Income from continuing operations | 9,064 | 2,537 | 211 | — | 534 | 12,345 | ||||||||||||||||||
Discontinued operations––net of tax | 1 | — | — | (1 | ) | — | — | |||||||||||||||||
Net income attributable to noncontrolling interests | 32 | — | — | — | — | 32 | ||||||||||||||||||
Net income attributable to Pfizer Inc. | 9,034 | 2,537 | 211 | (1 | ) | 534 | 12,313 | |||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted | 1.49 | 0.42 | 0.03 | — | 0.09 | 2.03 |
Three Months Ended October 2, 2016 | ||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported | Purchase Accounting Adjustments(a) | Acquisition-Related Costs(a) | Discontinued Operations(a) | Certain Significant Items(a) | Non-GAAP Adjusted | ||||||||||||||||||
Revenues | $ | 13,045 | $ | — | $ | — | $ | — | $ | — | $ | 13,045 | ||||||||||||
Cost of sales | 3,085 | (32 | ) | (3 | ) | — | (93 | ) | 2,957 | |||||||||||||||
Selling, informational and administrative expenses | 3,559 | (5 | ) | — | — | (23 | ) | 3,531 | ||||||||||||||||
Research and development expenses | 1,881 | — | — | — | (8 | ) | 1,873 | |||||||||||||||||
Amortization of intangible assets | 968 | (936 | ) | — | — | — | 32 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 531 | — | (277 | ) | — | (254 | ) | — | ||||||||||||||||
Other (income)/deductions––net | 1,417 | 6 | — | — | (1,590 | ) | (168 | ) | ||||||||||||||||
Income from continuing operations before provision for taxes on income | 1,604 | 966 | 280 | — | 1,969 | 4,819 | ||||||||||||||||||
Provision for taxes on income(b), (c) | 249 | 366 | 73 | — | 370 | 1,058 | ||||||||||||||||||
Income from continuing operations(c) | 1,355 | 600 | 207 | — | 1,599 | 3,761 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | — | — | ||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | — | ||||||||||||||||||
Net income attributable to Pfizer Inc.(c) | 1,355 | 600 | 207 | — | 1,599 | 3,761 | ||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted(c) | 0.22 | 0.10 | 0.03 | — | 0.26 | 0.61 |
Nine Months Ended October 2, 2016 | ||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported | Purchase Accounting Adjustments(a) | Acquisition-Related Costs(a) | Discontinued Operations(a) | Certain Significant Items(a) | Non-GAAP Adjusted | ||||||||||||||||||
Revenues | $ | 39,196 | $ | — | $ | — | $ | — | $ | — | $ | 39,196 | ||||||||||||
Cost of sales | 9,111 | (284 | ) | (3 | ) | — | (240 | ) | 8,584 | |||||||||||||||
Selling, informational and administrative expenses | 10,414 | (13 | ) | — | — | (59 | ) | 10,342 | ||||||||||||||||
Research and development expenses | 5,360 | 1 | — | — | (24 | ) | 5,336 | |||||||||||||||||
Amortization of intangible assets | 2,934 | (2,841 | ) | — | — | — | 94 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 988 | — | (595 | ) | — | (393 | ) | — | ||||||||||||||||
Other (income)/deductions––net | 2,815 | 33 | — | — | (3,395 | ) | (547 | ) | ||||||||||||||||
Income from continuing operations before provision for taxes on income | 7,575 | 3,103 | 598 | — | 4,112 | 15,388 | ||||||||||||||||||
Provision for taxes on income(b), (c) | 1,109 | 962 | 47 | — | 1,377 | 3,496 | ||||||||||||||||||
Income from continuing operations(c) | 6,465 | 2,141 | 550 | — | 2,735 | 11,892 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | — | — | ||||||||||||||||||
Net income attributable to noncontrolling interests | 25 | — | — | — | — | 25 | ||||||||||||||||||
Net income attributable to Pfizer Inc.(c) | 6,440 | 2,141 | 550 | — | 2,735 | 11,867 | ||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted(c) | 1.04 | 0.35 | 0.09 | — | 0.44 | 1.92 |
The |
Three Months Ended | Nine Months Ended | |||||||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | October 1, 2017 | October 2, 2016 | ||||||||||||
Purchase accounting adjustments | ||||||||||||||||
Amortization, depreciation and other(a) | $ | 1,126 | $ | 934 | $ | 3,482 | $ | 2,819 | ||||||||
Cost of sales | 28 | 32 | 45 | 284 | ||||||||||||
Total purchase accounting adjustments––pre-tax | 1,154 | 966 | 3,527 | 3,103 | ||||||||||||
Income taxes(b) | (306 | ) | (366 | ) | (990 | ) | (962 | ) | ||||||||
Total purchase accounting adjustments––net of tax | 848 | 600 | 2,537 | 2,141 | ||||||||||||
Acquisition-related costs | ||||||||||||||||
Restructuring charges(c) | 70 | 150 | 82 | 181 | ||||||||||||
Transaction costs(c) | (14 | ) | 54 | 4 | 114 | |||||||||||
Integration costs(c) | 73 | 73 | 224 | 300 | ||||||||||||
Additional depreciation––asset restructuring(d) | 26 | 3 | 38 | 3 | ||||||||||||
Total acquisition-related costs––pre-tax | 155 | 280 | 347 | 598 | ||||||||||||
Income taxes(e) | (72 | ) | (73 | ) | (137 | ) | (47 | ) | ||||||||
Total acquisition-related costs––net of tax | 83 | 207 | 211 | 550 | ||||||||||||
Discontinued operations | ||||||||||||||||
Total discontinued operations––net of tax, attributable to Pfizer Inc.(f) | — | — | (1 | ) | — | |||||||||||
Certain significant items | ||||||||||||||||
Restructuring charges(g) | 21 | 254 | 68 | 393 | ||||||||||||
Implementation costs and additional depreciation––asset restructuring(h) | 69 | 122 | 185 | 350 | ||||||||||||
Certain legal matters, net(i) | 183 | (40 | ) | 191 | 506 | |||||||||||
Loss on sale and impairment on remeasurement of HIS net assets(i) | (12 | ) | 1,422 | 52 | 1,422 | |||||||||||
Certain asset impairments(i) | 127 | 126 | 127 | 1,073 | ||||||||||||
Business and legal entity alignment costs(i) | 16 | 69 | 54 | 180 | ||||||||||||
Other(j) | 45 | 17 | 119 | 189 | ||||||||||||
Total certain significant items––pre-tax | 449 | 1,969 | 797 | 4,112 | ||||||||||||
Income taxes(k) | (161 | ) | (370 | ) | (263 | ) | (1,377 | ) | ||||||||
Total certain significant items––net of tax | 288 | 1,599 | 534 | 2,735 | ||||||||||||
Total purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items––net of tax, attributable to Pfizer Inc. | $ | 1,219 | $ | 2,406 | $ | 3,280 | $ | 5,426 |
The following tables provide revenue and cost information by reportable operating segment and a reconciliation of that information to our condensed consolidated statements of income: | ||||||||||||||||||||||||
Third Quarter of 2017 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Innovative Health (IH)(a) | Essential Health (EH)(a) | Other(b) | Non-GAAP Adjusted(c) | Reconciling Items(d) | GAAP Reported | ||||||||||||||||||
Revenues | $ | 8,118 | $ | 5,050 | $ | — | $ | 13,168 | $ | — | $ | 13,168 | ||||||||||||
Cost of sales | 1,082 | 1,448 | 170 | 2,699 | 147 | 2,847 | ||||||||||||||||||
% of revenue | 13.3 | % | 28.7 | % | * | 20.5 | % | * | 21.6 | % | ||||||||||||||
Selling, informational and administrative expenses | 1,736 | 727 | 1,016 | 3,478 | 22 | 3,500 | ||||||||||||||||||
Research and development expenses | 639 | 249 | 964 | 1,851 | 8 | 1,859 | ||||||||||||||||||
Amortization of intangible assets | 40 | 17 | — | 57 | 1,120 | 1,177 | ||||||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | 149 | 149 | ||||||||||||||||||
Other (income)/deductions––net | (253 | ) | (155 | ) | 147 | (261 | ) | 312 | 51 | |||||||||||||||
Income/(loss) from continuing operations before provision for taxes on income | $ | 4,875 | $ | 2,765 | $ | (2,297 | ) | $ | 5,343 | $ | (1,759 | ) | $ | 3,585 |
Nine Months Ended October 1, 2017 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Innovative Health (IH)(a) | Essential Health (EH)(a) | Other(b) | Non-GAAP Adjusted(c) | Reconciling Items(d) | GAAP Reported | ||||||||||||||||||
Revenues | $ | 23,204 | $ | 15,639 | $ | — | $ | 38,843 | $ | — | $ | 38,843 | ||||||||||||
Cost of sales | 2,912 | 4,319 | 497 | 7,729 | 252 | 7,980 | ||||||||||||||||||
% of revenue | 12.6 | % | 27.6 | % | * | 19.9 | % | * | 20.5 | % | ||||||||||||||
Selling, informational and administrative expenses | 4,914 | 2,212 | 3,026 | 10,151 | 82 | 10,233 | ||||||||||||||||||
Research and development expenses | 1,709 | 755 | 2,862 | 5,326 | 20 | 5,346 | ||||||||||||||||||
Amortization of intangible assets | 90 | 43 | — | 133 | 3,438 | 3,571 | ||||||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | 377 | 377 | ||||||||||||||||||
Other (income)/deductions––net | (611 | ) | (248 | ) | 341 | (519 | ) | 503 | (16 | ) | ||||||||||||||
Income/(loss) from continuing operations before provision for taxes on income | $ | 14,190 | $ | 8,558 | $ | (6,725 | ) | $ | 16,023 | $ | (4,671 | ) | $ | 11,351 |
Third Quarter of 2016 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Innovative Health (IH)(a) | Essential Health (EH)(a) | Other(b) | Non-GAAP Adjusted(c) | Reconciling Items(d) | GAAP Reported | ||||||||||||||||||
Revenues | $ | 7,332 | $ | 5,712 | $ | — | $ | 13,045 | $ | — | $ | 13,045 | ||||||||||||
Cost of sales | 1,039 | 1,546 | 372 | 2,957 | 128 | 3,085 | ||||||||||||||||||
% of revenue | 14.2 | % | 27.1 | % | * | 22.7 | % | * | 23.6 | % | ||||||||||||||
Selling, informational and administrative expenses | 1,647 | 813 | 1,071 | 3,531 | 28 | 3,559 | ||||||||||||||||||
Research and development expenses | 671 | 292 | 911 | 1,873 | 8 | 1,881 | ||||||||||||||||||
Amortization of intangible assets | 25 | 7 | — | 32 | 936 | 968 | ||||||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | 531 | 531 | ||||||||||||||||||
Other (income)/deductions––net | (237 | ) | (73 | ) | 142 | (168 | ) | 1,584 | 1,417 | |||||||||||||||
Income/(loss) from continuing operations before provision for taxes on income | $ | 4,187 | $ | 3,128 | $ | (2,496 | ) | $ | 4,819 | $ | (3,215 | ) | $ | 1,604 |
Nine Months Ended October 2, 2016 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Innovative Health (IH)(a) | Essential Health (EH)(a) | Other(b) | Non-GAAP Adjusted(c) | Reconciling Items(d) | GAAP Reported | ||||||||||||||||||
Revenues | $ | 21,471 | $ | 17,725 | $ | — | $ | 39,196 | $ | — | $ | 39,196 | ||||||||||||
Cost of sales | 2,930 | 4,677 | 977 | 8,584 | 527 | 9,111 | ||||||||||||||||||
% of revenue | 13.6 | % | 26.4 | % | * | 21.9 | % | * | 23.2 | % | ||||||||||||||
Selling, informational and administrative expenses | 4,947 | 2,435 | 2,960 | 10,342 | 72 | 10,414 | ||||||||||||||||||
Research and development expenses | 1,815 | 876 | 2,645 | 5,336 | 23 | 5,360 | ||||||||||||||||||
Amortization of intangible assets | 74 | 20 | — | 94 | 2,841 | 2,934 | ||||||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | 988 | 988 | ||||||||||||||||||
Other (income)/deductions––net | (764 | ) | (267 | ) | 484 | (547 | ) | 3,362 | 2,815 | |||||||||||||||
Income/(loss) from continuing operations before provision for taxes on income | $ | 12,470 | $ | 9,985 | $ | (7,066 | ) | $ | 15,388 | $ | (7,813 | ) | $ | 7,575 |
Third Quarter of 2017 | ||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | WRD(i) | GPD(ii) | Corporate(iii) | Other Unallocated(iv) | Total | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Cost of sales | — | — | 28 | 142 | 170 | |||||||||||||||
Selling, informational and administrative expenses | — | — | 993 | 23 | 1,016 | |||||||||||||||
Research and development expenses | 568 | 193 | 194 | 8 | 964 | |||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | — | |||||||||||||||
Other (income)/deductions––net | (2 | ) | — | 167 | (18 | ) | 147 | |||||||||||||
Loss from continuing operations before provision for taxes on income | $ | (566 | ) | $ | (193 | ) | $ | (1,382 | ) | $ | (156 | ) | $ | (2,297 | ) |
Nine Months Ended October 1, 2017 | ||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | WRD(i) | GPD(ii) | Corporate(iii) | Other Unallocated(iv) | Total | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Cost of sales | — | — | (3 | ) | 500 | 497 | ||||||||||||||
Selling, informational and administrative expenses | — | (1 | ) | 2,995 | 31 | 3,026 | ||||||||||||||
Research and development expenses | 1,674 | 560 | 616 | 12 | 2,862 | |||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | — | |||||||||||||||
Other (income)/deductions––net | (29 | ) | — | 339 | 31 | 341 | ||||||||||||||
Loss from continuing operations before provision for taxes on income | $ | (1,645 | ) | $ | (559 | ) | $ | (3,948 | ) | $ | (573 | ) | $ | (6,725 | ) |
Third Quarter of 2016 | ||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | WRD(i) | GPD(ii) | Corporate(iii) | Other Unallocated(iv) | Total | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Cost of sales | — | — | 104 | 268 | 372 | |||||||||||||||
Selling, informational and administrative expenses | — | 1 | 1,073 | (3 | ) | 1,071 | ||||||||||||||
Research and development expenses | 575 | 172 | 169 | (5 | ) | 911 | ||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | — | |||||||||||||||
Other (income)/deductions––net | 5 | — | 191 | (54 | ) | 142 | ||||||||||||||
Loss from continuing operations before provision for taxes on income | $ | (580 | ) | $ | (173 | ) | $ | (1,537 | ) | $ | (206 | ) | $ | (2,496 | ) |
Nine Months Ended October 2, 2016 | ||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | WRD(i) | GPD(ii) | Corporate(iii) | Other Unallocated(iv) | Total | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Cost of sales | — | — | 194 | 783 | 977 | |||||||||||||||
Selling, informational and administrative expenses | — | 1 | 2,910 | 48 | 2,960 | |||||||||||||||
Research and development expenses | 1,629 | 487 | 523 | 6 | 2,645 | |||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | — | |||||||||||||||
Other (income)/deductions––net | (22 | ) | — | 590 | (83 | ) | 484 | |||||||||||||
Loss from continuing operations before provision for taxes on income | $ | (1,608 | ) | $ | (488 | ) | $ | (4,217 | ) | $ | (753 | ) | $ | (7,066 | ) |
Nine Months Ended October 1, 2017 | ||||||||||||||||
Estimated Other Costs Associated with IH(ii) | ||||||||||||||||
(MILLIONS OF DOLLARS) | Innovative Health Non-GAAP Adjusted(i), (iii) | Estimated WRD/GPD(ii) | Estimated Corporate/Other Unallocated(ii) | Innovative Health with Estimated Other Costs Associated with Innovative Health Non-GAAP Adjusted(ii), (iii) | ||||||||||||
Revenues | $ | 23,204 | $ | — | $ | — | $ | 23,204 | ||||||||
Cost of sales | 2,912 | — | 68 | 2,980 | ||||||||||||
Selling, informational and administrative expenses | 4,914 | (1 | ) | 1,688 | 6,601 | |||||||||||
Research and development expenses | 1,709 | 2,220 | 575 | 4,504 | ||||||||||||
Amortization of intangible assets | 90 | — | — | 90 | ||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | ||||||||||||
Other (income)/deductions––net | (611 | ) | (29 | ) | (84 | ) | (725 | ) | ||||||||
Income from continuing operations before provision for taxes on income | 14,190 | (2,190 | ) | (2,246 | ) | 9,754 |
Nine Months Ended October 1, 2017 | ||||||||||||||||
Estimated Other Costs Associated with EH(ii) | ||||||||||||||||
(MILLIONS OF DOLLARS) | Essential Health Non-GAAP Adjusted(i), (iii) | Estimated WRD/GPD(ii) | Estimated Corporate/Other Unallocated(ii) | Essential Health with Estimated Other Costs Associated with Essential Health Non-GAAP Adjusted(ii), (iii) | ||||||||||||
Revenues | $ | 15,639 | $ | — | $ | — | $ | 15,639 | ||||||||
Cost of sales | 4,319 | — | 429 | 4,749 | ||||||||||||
Selling, informational and administrative expenses | 2,212 | — | 1,338 | 3,550 | ||||||||||||
Research and development expenses | 755 | 15 | 53 | 823 | ||||||||||||
Amortization of intangible assets | 43 | — | — | 43 | ||||||||||||
Restructuring charges and certain acquisition-related costs | — | — | — | — | ||||||||||||
Other (income)/deductions––net | (248 | ) | — | (104 | ) | (353 | ) | |||||||||
Income from continuing operations before provision for taxes on income | 8,558 | (15 | ) | (1,716 | ) | 6,827 |
(MILLIONS OF DOLLARS) | ||||
IH Revenues, for the three months ended October 2, 2016 | $ | 7,332 | ||
Operational growth/(decline): | ||||
Continued growth from key brands including Ibrance and Eliquis globally, as well as Lyrica and Xeljanz, both primarily in the U.S. | 751 | |||
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) | 148 | |||
Lower revenues for Viagra in the U.S. primarily due to wholesaler destocking in advance of anticipated generic competition beginning in December 2017 | (91 | ) | ||
Lower revenues for Enbrel, primarily in most developed Europe markets due to continued biosimilar competition | (89 | ) | ||
Decline in Prevnar 13/Prevenar 13 revenues. U.S. revenues decreased primarily due to the continued decline in revenues for the Adult indication due to a smaller remaining “catch up” opportunity compared to the prior-year quarter, partially offset by growth from the pediatric indication. International revenues increased primarily due to the favorable overall impact of timing of government purchases in certain emerging markets and the launch of Prevenar 13 in China for the pediatric indication. | (16 | ) | ||
Other operational factors, net | 95 | |||
Operational growth, net | 799 | |||
Unfavorable impact of foreign exchange | (13 | ) | ||
IH Revenues increase | 786 | |||
IH Revenues, for the three months ended October 1, 2017 | $ | 8,118 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | $ | 356 | $ | (328) | * | $ | 3,098 | $ | 1,603 | 93 | ||||||||||||||||||||||||||||
Effective tax rate on continuing operations | 4.0 | % | (4.2) | % | 10.5 | % | 7.8 | % | ||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | ||||
EH Revenues, for the three months ended October 2, 2016 | $ | 5,712 | ||
Disposition-related operational impact: | ||||
Financial results in the third quarter of 2017 do not reflect any contribution from HIS global operations, compared to the inclusion of three months of HIS global operations in the same period in 2016 (February 2017 sale) | (280 | ) | ||
Other operational growth/(decline): | ||||
Decline from Peri-LOE Products, including declines in Pristiq in the U.S., which lost marketing exclusivity in the U.S. in March 2017, as well as Lyrica and Vfend, both primarily in developed Europe | (220 | ) | ||
Decline from the Sterile Injectable Pharmaceuticals portfolio, primarily due to legacy Hospira product shortages in the U.S. | (182 | ) | ||
Growth from Biosimilars | 55 | |||
Other operational factors, net | 6 | |||
Operational decline, net | (621 | ) | ||
Unfavorable impact of foreign exchange | (41 | ) | ||
EH Revenues decrease | (662 | ) | ||
EH Revenues, for the three months ended October 1, 2017 | $ | 5,050 |
Costs and expenses follow: | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 6,063 | $ | 9,932 | (39) | $ | 24,696 | $ | 21,085 | 17 | ||||||||||||||||||||||||||||
Percentage of Revenues | 26.8 | % | 41.3 | % | 32.5 | % | 36.7 | % | ||||||||||||||||||||||||||||||
Selling, informational and administrative expenses | 3,391 | 2,899 | 17 | 9,032 | 8,599 | 5 | ||||||||||||||||||||||||||||||||
Research and development expenses | 2,696 | 2,681 | 1 | 7,813 | 6,914 | 13 | ||||||||||||||||||||||||||||||||
Acquired in-process research and development expenses | 524 | 762 | (31) | 880 | 1,000 | (12) | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 822 | 968 | (15) | 2,478 | 2,743 | (10) | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 199 | 646 | (69) | 580 | 667 | (13) | ||||||||||||||||||||||||||||||||
Other (income)/deductions—net | (59) | (1,696) | (97) | 1,063 | (4,043) | * | ||||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | % Change | October 2, 2022 | October 3, 2021 | % Change | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | $ | 356 | $ | (328) | * | $ | 3,098 | $ | 1,603 | 93 | ||||||||||||||||||||||||||||
Effective tax rate on continuing operations | 4.0 | % | (4.2) | % | 10.5 | % | 7.8 | % | ||||||||||||||||||||||||||||||
* Indicates calculation not meaningful. | ||||||||||||||||||||||||||||||||||||||
PATIENT POPULATION AND DATE OF APPROVAL/FILING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COVID-19 VACCINE PRODUCT(a) | PRIMARY SERIES OR BOOSTER | 16 Years of age and older | 12-15 Years of age | 5-11 Years of age | 6 Months through 4 Years of age | |||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | EU | JAPAN | U.S. | EU | JAPAN | U.S. | EU | JAPAN | U.S. | EU | JAPAN | |||||||||||||||||||||||||||||||||||||||||||||
Comirnaty | 30-µg 2-dose primary(b) | 10-µg 2-dose primary(c) | 3-µg 3-dose primary | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Primary | Approved Aug. 2021 | CMA Dec. 2020 | Cond. J-NDA Feb. 2021 | EUA May 2021 | CMA May 2021 | Cond. J-NDA May 2021 | EUA Oct. 2021 | CMA Nov. 2021 | Cond. J-NDA Jan. 2022 | EUA June 2022 | CMA Oct. 2022 | Cond. J-NDA Oct. 2022 | ||||||||||||||||||||||||||||||||||||||||||||
30-µg booster dose(d) | 10-µg booster dose | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Booster | EUA(e) Dec. 2021 | CMA Oct. 2021 | Cond. J-NDA Nov. 2021 | EUA(e) Jan. 2022 | CMA Feb. 2022 | Cond. J-NDA Jan. 2022 | EUA(e) May 2022 | CMA Sep. 2022 | Cond. J-NDA June 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Comirnaty Original/Omicron BA.4/BA.5 Vaccine(f) | Booster | 30-µg booster dose | 10-µg booster dose | |||||||||||||||||||||||||||||||||||||||||||||||||||||
EUA Aug. 2022 | CMA Sep. 2022 | Cond. J-NDA Oct. 2022 | EUA Aug. 2022 | CMA Sep. 2022 | Cond. J-NDA Oct. 2022 | EUA Oct. 2022 | Filed Sep. 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comirnaty Original/Omicron BA.1 Vaccine | Booster | 30-µg booster dose | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMA Sep. 2022 | Cond. J-NDA Sep. 2022 | CMA Sep. 2022 | Cond. J-NDA Sep. 2022 |
PRODUCT | DISEASE AREA | APPROVED/FILED* | ||||||||||||
U.S. | EU | JAPAN | ||||||||||||
Cibinqo (abrocitinib) | Atopic dermatitis | Approved Jan. 2022 | Approved Dec. 2021 | Approved Sep. 2021 | ||||||||||
Xeljanz (tofacitinib) | Ankylosing spondylitis | Approved Dec. 2021 | Approved Nov. 2021 | |||||||||||
Myfembree (relugolix fixed dose combination)(a) | Uterine fibroids (combination with estradiol and norethindrone acetate) | Approved May 2021 | ||||||||||||
Endometriosis (combination with estradiol and norethindrone acetate) | Approved Aug. 2022 | |||||||||||||
Lorbrena/Lorviqua (lorlatinib) | First-line ALK-positive NSCLC | Approved Mar. 2021 | Approved Jan. 2022 | Approved Nov. 2021 | ||||||||||
Ngenla (somatrogon)(b) | Pediatric growth hormone deficiency | Filed Jan. 2021 | Approved Feb. 2022 | Approved Jan. 2022 | ||||||||||
Prevnar 20/Apexxnar (Vaccine)(c) | Immunization to prevent invasive and non-invasive pneumococcal infections (adults) | Approved June 2021 | Approved Feb. 2022 | |||||||||||
TicoVac (Vaccine) | Immunization to prevent tick-borne encephalitis | Approved Aug. 2021 | ||||||||||||
Paxlovid(d)(nirmatrelvir [PF-07321332]; ritonavir) | COVID-19 infection (high risk population) | EUA Dec. 2021 | CMA Jan. 2022 | Approved Feb. 2022 | ||||||||||
Nurtec ODT/Vydura (rimegepant) | Acute migraine | Approved Feb. 2020 | Approved Apr. 2022 | |||||||||||
Migraine prevention | Approved May 2021 | Approved Apr. 2022 | ||||||||||||
ritlecitinib (PF-06651600) | Alopecia areata | Filed Sep. 2022 | Filed Sep. 2022 | Filed Sep. 2022 | ||||||||||
zavegepant (intranasal) | Acute migraine | Filed May 2022 |
LATE-STAGE CLINICAL PROGRAMS FOR ADDITIONAL USES AND DOSAGE FORMS FOR IN-LINE AND IN-REGISTRATION PRODUCTS | PRODUCT/CANDIDATE | PROPOSED DISEASE AREA | |||||||||
Ibrance (palbociclib)(a) | ER+/HER2+ metastatic breast cancer | ||||||||||
Xtandi (enzalutamide)(b) | Non-metastatic high-risk castration sensitive prostate cancer | ||||||||||
Talzenna (talazoparib) | Combination with Xtandi (enzalutamide) for first-line mCRPC | ||||||||||
Combination with Xtandi (enzalutamide) for DNA Damage Repair (DDR)-deficient mCSPC | |||||||||||
PF-06482077 (Vaccine) | Immunization to prevent invasive and non-invasive pneumococcal infections (pediatric) | ||||||||||
somatrogon (PF-06836922)(c) | Adult growth hormone deficiency | ||||||||||
Braftovi (encorafenib) and Erbitux® (cetuximab)(d) | First-line BRAFv600E-mutant mCRC | ||||||||||
Braftovi (encorafenib) and Mektovi (binimetinib) and Keytruda® (pembrolizumab)(e) | BRAFv600E-mutant metastatic or unresectable locally advanced melanoma | ||||||||||
Paxlovid (nirmatrelvir [PF-07321332]; ritonavir) | COVID-19 infection (pediatric) | ||||||||||
zavegepant (oral) | Migraine prevention | ||||||||||
NEW DRUG CANDIDATES IN LATE-STAGE DEVELOPMENT | aztreonam-avibactam (PF-06947387) | Treatment of infections caused by Gram-negative bacteria with limited or no treatment options | |||||||||
fidanacogene elaparvovec (PF-06838435)(f) | Hemophilia B | ||||||||||
giroctocogene fitelparvovec (PF-07055480)(g) | Hemophilia A | ||||||||||
PF-06425090 (Vaccine) | Immunization to prevent primary clostridioides difficile infection | ||||||||||
PF-06886992 (Vaccine) | Immunization to prevent serogroups meningococcal infection (adolescent and young adults) | ||||||||||
PF-06928316 (Vaccine) | Immunization to prevent respiratory syncytial virus infection (maternal) | ||||||||||
Immunization to prevent respiratory syncytial virus infection (older adults) | |||||||||||
sasanlimab (PF-06801591) | Combination with Bacillus Calmette-Guerin for non-muscle-invasive bladder cancer | ||||||||||
fordadistrogene movaparvovec (PF-06939926) | Duchenne muscular dystrophy (ambulatory) | ||||||||||
marstacimab (PF-06741086) | Hemophilia | ||||||||||
elranatamab (PF-06863135)(h) | Multiple myeloma triple-class refractory | ||||||||||
Multiple myeloma double-class exposed | |||||||||||
Newly diagnosed multiple myeloma | |||||||||||
Omicron-based mRNA vaccine(i) | Immunization to prevent COVID-19 (adults) | ||||||||||
etrasimod (PF-07915503) | Ulcerative colitis (moderately to severely active) | ||||||||||
VLA15 (PF-07307405) vaccine(j) | Immunization to prevent Lyme Disease | ||||||||||
PF-07252220 (quadrivalent mRNA-based vaccine) | Immunization to prevent influenza | ||||||||||
inclacumab (PF-07940370) | Sickle Cell Disease |
Measure | Definition | Relevance of Metrics to Our Business Performance | ||||||||||||
Adjusted income | Net income attributable to Pfizer Inc. common shareholders(a) before the impact of amortization of intangible assets, certain acquisition-related items, discontinued operations and certain significant items | •Provides investors useful information to: ◦evaluate the normal recurring operational activities, and their components, on a comparable year-over-year basis ◦assist in modeling expected future performance on a normalized basis •Provides investors insight into the way we manage our budgeting and forecasting, how we evaluate and manage our recurring operations and how we reward and compensate our senior management(b) | ||||||||||||
Adjusted cost of sales, Adjusted selling, informational and administrative expenses, Adjusted research and development expenses and Adjusted other (income)/deductions––net | Cost of sales, |
Selling, informational and administrative |
Research and developmentexpenses |
(MILLIONS OF DOLLARS) | ||||
IH Revenues, for the nine months ended October 2, 2016 | $ | 21,471 | ||
Operational growth/(decline): | ||||
Continued growth from key brands including Ibrance and Eliquis globally, as well as Lyrica and Xeljanz, both primarily in the U.S. | 2,102 | |||
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) | 420 | |||
Lower revenues for Enbrel, primarily in most developed Europe markets due to continued biosimilar competition | (353 | ) | ||
Decline in Prevnar 13/Prevenar 13 revenues. U.S. revenues decreased primarily due to the continued decline in revenues for the Adult indication due to a smaller remaining “catch up” opportunity compared to the first nine months of 2016, partially offset by growth from the pediatric indication. International revenues increased primarily due to the favorable overall impact of timing of government purchases in certain emerging markets and the launch of Prevenar 13 in China for the pediatric indication. | (213 | ) | ||
Lower revenues for Viagra in the U.S. primarily due to lower market growth | (186 | ) | ||
Other operational factors, net | 113 | |||
Operational growth, net | 1,883 | |||
Unfavorable impact of foreign exchange | (150 | ) | ||
IH Revenues increase | 1,733 | |||
IH Revenues, for the nine months ended October 1, 2017 | $ | 23,204 |
(MILLIONS OF DOLLARS) | ||||
EH Revenues, for the nine months ended October 2, 2016 | $ | 17,725 | ||
Disposition-related operational impact: | ||||
Approximately one month of HIS domestic operations and approximately two months of HIS international operations in the first nine months of 2017, compared to nine months of HIS global operations in the same period in 2016 (February 2017 sale) | (783 | ) | ||
Other operational growth/(decline): | ||||
Decline from Peri-LOE Products, including declines in Pristiq in the U.S., which lost marketing exclusivity in the U.S. in March 2017, as well as Lyrica and Vfend, both primarily in developed Europe | (779 | ) | ||
Decline in the Legacy Established Products portfolio | (250 | ) | ||
Decline from the Sterile Injectable Pharmaceuticals portfolio, primarily due to legacy Hospira product shortages in the U.S. | (169 | ) | ||
Growth from Biosimilars | 143 | |||
Other operational factors, net | (26 | ) | ||
Operational decline, net | (1,864 | ) | ||
Unfavorable impact of foreign exchange | (222 | ) | ||
EH Revenues decrease | (2,086 | ) | ||
EH Revenues, for the nine months ended October 1, 2017 | $ | 15,639 |
Three Months Ended October 2, 2022 | ||||||||||||||||||||||||||||||||
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER COMMON SHARE DATA) | Cost of sales(a) | Selling, informational and administrative expenses(a) | Other (income)/deductions––net(a) | Net income attributable to Pfizer Inc. common shareholders(a) | Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | |||||||||||||||||||||||||||
GAAP reported | $ | 6,063 | $ | 3,391 | $ | (59) | $ | 8,608 | $ | 1.51 | ||||||||||||||||||||||
Amortization of intangible assets | — | — | — | 822 | ||||||||||||||||||||||||||||
Acquisition-related items(b) | 3 | (2) | (12) | 62 | ||||||||||||||||||||||||||||
Discontinued operations(c) | — | — | — | 15 | ||||||||||||||||||||||||||||
Certain significant items: | ||||||||||||||||||||||||||||||||
Restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring(d) | (20) | (137) | — | 306 | ||||||||||||||||||||||||||||
Certain asset impairments(e) | — | — | (200) | 200 | ||||||||||||||||||||||||||||
(Gains)/losses on equity securities | — | — | (111) | 111 | ||||||||||||||||||||||||||||
Actuarial valuation and other pension and postretirement plan (gains)/losses | — | — | 193 | (193) | ||||||||||||||||||||||||||||
Other(f) | (8) | (12) | (325) | 349 | ||||||||||||||||||||||||||||
Income tax provision—non-GAAP items | (109) | |||||||||||||||||||||||||||||||
Non-GAAP adjusted | $ | 6,038 | $ | 3,239 | $ | (515) | $ | 10,172 | $ | 1.78 |
Nine Months Ended October 2, 2022 | ||||||||||||||||||||||||||||||||
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER COMMON SHARE DATA) | Cost of sales(a) | Selling, informational and administrative expenses(a) | Other (income)/deductions––net(a) | Net income attributable to Pfizer Inc. common shareholders(a) | Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | |||||||||||||||||||||||||||
GAAP reported | $ | 24,696 | $ | 9,032 | $ | 1,063 | $ | 26,378 | $ | 4.60 | ||||||||||||||||||||||
Amortization of intangible assets | — | — | — | 2,478 | ||||||||||||||||||||||||||||
Acquisition-related items(b) | 12 | (5) | (51) | 331 | ||||||||||||||||||||||||||||
Discontinued operations(c) | — | — | — | (9) | ||||||||||||||||||||||||||||
Certain significant items: | ||||||||||||||||||||||||||||||||
Restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring(d) | (62) | (344) | — | 701 | ||||||||||||||||||||||||||||
Certain asset impairments(e) | — | — | (200) | 200 | ||||||||||||||||||||||||||||
(Gains)/losses on equity securities | — | — | (1,348) | 1,348 | ||||||||||||||||||||||||||||
Actuarial valuation and other pension and postretirement plan (gains)/losses | — | — | (225) | 225 | ||||||||||||||||||||||||||||
Other(f) | (24) | (47) | (536) | 621 | ||||||||||||||||||||||||||||
Income tax provision—Non-GAAP items | (1,107) | |||||||||||||||||||||||||||||||
Non-GAAP adjusted | $ | 24,621 | $ | 8,635 | $ | (1,298) | $ | 31,165 | $ | 5.44 |
Three Months Ended October 3, 2021 | ||||||||||||||||||||||||||||||||
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER COMMON SHARE DATA) | Cost of sales(a) | Selling, informational and administrative expenses(a) | Other (income)/deductions––net(a) | Net income attributable to Pfizer Inc. common shareholders(a) | Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | |||||||||||||||||||||||||||
GAAP reported | $ | 9,932 | $ | 2,899 | $ | (1,696) | $ | 8,146 | $ | 1.42 | ||||||||||||||||||||||
Amortization of intangible assets | — | (9) | (1) | 980 | ||||||||||||||||||||||||||||
Acquisition-related items | 6 | (1) | (47) | 41 | ||||||||||||||||||||||||||||
Discontinued operations(c) | — | — | — | 17 | ||||||||||||||||||||||||||||
Certain significant items: | ||||||||||||||||||||||||||||||||
Restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring(d) | (28) | (150) | — | 823 | ||||||||||||||||||||||||||||
(Gains)/losses on equity securities | — | — | 400 | (400) | ||||||||||||||||||||||||||||
Actuarial valuation and other pension and postretirement plan (gains)/losses | — | — | 899 | (899) | ||||||||||||||||||||||||||||
Other(f) | (11) | (20) | (126) | 159 | ||||||||||||||||||||||||||||
Income tax provision—non-GAAP items | (1,587) | |||||||||||||||||||||||||||||||
Non-GAAP adjusted | $ | 9,899 | $ | 2,719 | $ | (570) | $ | 7,279 | $ | 1.27 |
Nine Months Ended October 3, 2021 | ||||||||||||||||||||||||||||||||
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER COMMON SHARE DATA) | Cost of sales(a) | Selling, informational and administrative expenses(a) | Other (income)/deductions––net(a) | Net income attributable to Pfizer Inc. common shareholders(a) | Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | |||||||||||||||||||||||||||
GAAP reported | $ | 21,085 | $ | 8,599 | $ | (4,043) | $ | 18,586 | $ | 3.27 | ||||||||||||||||||||||
Amortization of intangible assets | — | (29) | (2) | 2,778 | ||||||||||||||||||||||||||||
Acquisition-related items | 17 | (2) | (31) | 14 | ||||||||||||||||||||||||||||
Discontinued operations(c) | — | — | — | 353 | ||||||||||||||||||||||||||||
Certain significant items: | ||||||||||||||||||||||||||||||||
Restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring(d) | (82) | (310) | — | 1,057 | ||||||||||||||||||||||||||||
(Gains)/losses on equity securities | — | — | 1,597 | (1,597) | ||||||||||||||||||||||||||||
Actuarial valuation and other pension and postretirement plan (gains)/losses | — | — | 932 | (932) | ||||||||||||||||||||||||||||
Other(f) | (45) | (119) | (200) | 370 | ||||||||||||||||||||||||||||
Income tax provision—Non-GAAP items | (1,976) | |||||||||||||||||||||||||||||||
Non-GAAP adjusted | $ | 20,975 | $ | 8,140 | $ | (1,747) | $ | 18,653 | $ | 3.28 |
Nine Months Ended | ||||||||||||||||||||||||||
(MILLIONS) | October 2, 2022 | October 3, 2021 | Drivers of change | |||||||||||||||||||||||
Cash provided by/(used in): | ||||||||||||||||||||||||||
Operating activities from continuing operations | $ | 20,685 | $ | 26,993 | The change was driven primarily by (i) a decrease in the change in amounts due to BioNTech for the gross profit split for Comirnaty (see Note 8), as well as (ii) the impact of timing of receipts and payments in the ordinary course of business, partially offset by (iii) higher net income adjusted for non-cash items, including an increase from non-cash unrealized losses on equity securities recognized in 2022, compared to unrealized gains recognized in 2021. | |||||||||||||||||||||
Investing activities from continuing operations | $ | (11,373) | $ | (19,951) | The change was driven mainly by a $19.2 billion increase in redemptions of short-term investments with original maturities of greater than three months and $4.0 billion of dividends received from our Haleon/GSK Consumer Healthcare JV investment that were allocated to investing activities, partially offset by $6.2 billion cash paid for the acquisition of Arena, net of cash acquired, a $3.7 billion increase in net purchases of short-term investments with original maturities of three months or less, and a $3.4 billion increase in purchases of short-term investments with original maturities of greater than three months. | |||||||||||||||||||||
Financing activities from continuing operations | $ | (9,819) | $ | (6,465) | The change was driven mostly by $2.0 billion purchases of the Company’s common stock in 2022 and a $997 million decrease in proceeds from the issuance of long-term debt. | |||||||||||||||||||||
Nine Months Ended | |||||||||||
(MILLIONS OF DOLLARS) | October 1, 2017 | October 2, 2016 | % Change | ||||||||
Cash provided by/(used in): | |||||||||||
Operating activities(a) | $ | 9,728 | $ | 10,151 | (4 | ) | |||||
Investing activities | 38 | (4,704 | ) | * | |||||||
Financing activities(a) | (9,650 | ) | (6,915 | ) | 40 | ||||||
Effect of exchange-rate changes on cash and cash equivalents | 67 | (79 | ) | * | |||||||
Net increase/(decrease) in Cash and cash equivalents | $ | 184 | $ | (1,547 | ) | * |
The following table provides certain relevant measures of our liquidity and capital resources: | ||||||||
(MILLIONS OF DOLLARS, EXCEPT RATIOS AND PER COMMON SHARE DATA) | October 1, 2017 | December 31, 2016 | ||||||
Selected financial assets: | ||||||||
Cash and cash equivalents(a) | $ | 2,779 | $ | 2,595 | ||||
Short-term investments(a) | 14,146 | 15,255 | ||||||
Long-term investments(a) | 7,311 | 7,116 | ||||||
24,236 | 24,967 | |||||||
Debt: | ||||||||
Short-term borrowings, including current portion of long-term debt | 9,448 | 10,688 | ||||||
Long-term debt | 34,503 | 31,398 | ||||||
43,951 | 42,085 | |||||||
Selected net financial liabilities(b) | $ | (19,714 | ) | $ | (17,118 | ) | ||
Working capital(c) | $ | 12,074 | $ | 7,834 | ||||
Ratio of current assets to current liabilities | 1.43:1 | 1.25:1 | ||||||
Total Pfizer Inc. shareholders’ equity per common share(d) | $ | 10.20 | $ | 9.81 |
The following table provides the number of shares of our common stock purchased and the cost of purchases under our publicly announced accelerated share repurchase agreements: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(SHARES IN MILLIONS, DOLLARS IN BILLIONS) | October 1, 2017 | October 2, 2016 | October 1, 2017(a) | October 2, 2016(b) | ||||||||||||
Shares of common stock purchased | — | — | 150 | 154 | ||||||||||||
Cost of purchase | $ | — | $ | — | $ | 5.0 | $ | 5.0 |
Standard/Description | Effective Date | Effect on the Financial Statements | ||||||||||||
1.Simplify accounting analyses under current U.S. GAAP for contract modifications. 2.Simplify the assessment of hedge effectiveness and allow hedging relationships affected by reference rate reform to continue. 3.Allow a |
adopted prospectively at any time through December 31, 2022. | ||||||||
We are assessing the impact, |
In June 2022, the FASB issued final guidance to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered when measuring fair value. Recognizing a contractual sale restriction as a separate unit of account is not permitted. | January 1, 2024, with early adoption permitted. | We are assessing the impact, but currently do not expect this new guidance to have a material impact on our consolidated financial statements. | ||||||||||||
In September 2022, the FASB issued final guidance to enhance transparency about an entity’s use of supplier finance programs. Under the final guidance, the buyer in a supplier finance program is required to disclose information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. | January 1, 2023, except for the amendment on rollforward information, which is effective January 1, 2024. Early adoption is permitted. | We are assessing the impact, but currently we expect this new guidance to result in increased disclosure in the notes to financial statements. |
PART II. OTHER INFORMATION |
Period | Total Number of Shares Purchased(a) | Average Price Paid per Share(a) | Total Number of Shares Purchased as Part of Publicly Announced Plan | Approximate Value of Shares That May Yet Be Purchased Under the Plan(b) | ||||||||||||||||||||||
July 4 through July 31, 2022 | 29,527 | $ | 52.06 | — | $ | 3,292,882,444 | ||||||||||||||||||||
August 1 through August 28, 2022 | 18,768 | $ | 50.29 | — | $ | 3,292,882,444 | ||||||||||||||||||||
August 29 through October 2, 2022 | 85,565 | $ | 45.46 | — | $ | 3,292,882,444 | ||||||||||||||||||||
Total | 133,860 | $ | 47.59 | — |
Period | Total Number of Shares Purchased(b) | Average Price Paid per Share(b) | Total Number of Shares Purchased as Part of Publicly Announced Plan | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan(a) | ||||||||||
July 3, 2017 through July 30, 2017 | 12,102 | $ | 33.46 | — | $ | 6,355,862,076 | ||||||||
July 31, 2017 through August 27, 2017 | 51,568 | $ | 33.03 | — | $ | 6,355,862,076 | ||||||||
August 28, 2017 through October 1, 2017 | 33,579 | $ | 34.06 | — | $ | 6,355,862,076 | ||||||||
Total | 97,249 | $ | 33.44 | — |
- | |||||||||||
Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
- | Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
- | Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
- | Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
Exhibit 101: | |||||||||||
EX-101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
EX-101.SCH EX-101.CAL EX-101.LAB EX-101.PRE EX-101.DEF | Inline XBRL Taxonomy Extension Schema Inline XBRL Taxonomy Extension Calculation Linkbase Inline XBRL Taxonomy Extension Label Linkbase Inline XBRL Taxonomy Extension Presentation Linkbase Inline XBRL Taxonomy Extension Definition Document | ||||||||||
Exhibit 104 | Cover Page Interactive Data File––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Pfizer Inc. | ||||||||
(Registrant) | ||||||||
Dated: | November 9, | /s/ | ||||||
Senior Vice President and Controller (Principal Accounting Officer and Duly Authorized Officer) |