Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Nov. 04, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'PFE | ' |
Entity Registrant Name | 'PFIZER INC | ' |
Entity Central Index Key | '0000078003 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 6,481,070,845 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Revenues | $12,643 | $12,953 | $38,026 | $40,766 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales(a) | 2,287 | [1] | 2,309 | [1] | 6,792 | [1] | 7,068 | [1] |
Selling, informational and administrative expenses(a) | 3,395 | [1] | 3,491 | [1] | 10,203 | [1] | 10,834 | [1] |
Research and development expenses(a) | 1,627 | [1] | 1,887 | [1] | 4,867 | [1] | 5,461 | [1] |
Amortization of intangible assets | 1,117 | 1,211 | 3,476 | 3,889 | ||||
Restructuring charges and certain acquisition-related costs | 233 | 312 | 547 | 1,085 | ||||
Other (income)/deductions––net | 411 | 937 | -514 | 3,264 | ||||
Income from continuing operations before provision for taxes on income | 3,573 | [2] | 2,806 | [2] | 12,655 | [2] | 9,165 | [2] |
Provision/(benefit) for taxes on income | 985 | -183 | 3,876 | 1,622 | ||||
Income from continuing operations | 2,588 | 2,989 | 8,779 | 7,543 | ||||
Discontinued operations: | ' | ' | ' | ' | ||||
Income from discontinued operations––net of tax | 36 | 225 | 326 | 734 | ||||
Gain on disposal of discontinued operations––net of tax | -25 | 0 | 10,393 | 0 | ||||
Discontinued operations––net of tax | 11 | 225 | 10,719 | 734 | ||||
Net income before allocation to noncontrolling interests | 2,599 | 3,214 | 19,498 | 8,277 | ||||
Less: Net income attributable to noncontrolling interests | 9 | 6 | 63 | 22 | ||||
Net income attributable to Pfizer Inc. | $2,590 | $3,208 | $19,435 | $8,255 | ||||
Earnings per common share––basic(b): | ' | ' | ' | ' | ||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $0.39 | [3] | $0.40 | [3] | $1.26 | [3] | $1 | [3] |
Discontinued operations––net of tax | $0 | [3] | $0.03 | [3] | $1.54 | [3] | $0.10 | [3] |
Net income attributable to Pfizer Inc. common shareholders | $0.39 | [3] | $0.43 | [3] | $2.80 | [3] | $1.10 | [3] |
Earnings per common share––diluted(b): | ' | ' | ' | ' | ||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $0.39 | [3] | $0.40 | [3] | $1.25 | [3] | $1 | [3] |
Discontinued operations––net of tax | $0 | [3] | $0.03 | [3] | $1.52 | [3] | $0.10 | [3] |
Net income attributable to Pfizer Inc. common shareholders | $0.39 | [3] | $0.43 | [3] | $2.77 | [3] | $1.09 | [3] |
Weighted-average shares––basic | 6,581 | 7,436 | 6,938 | 7,483 | ||||
Weighted-average shares––diluted | 6,656 | 7,508 | 7,016 | 7,550 | ||||
Cash dividends paid per common share | $0.24 | $0.22 | $0.72 | $0.66 | ||||
[1] | Excludes amortization of intangible assets, except as disclosed in Note 9B. Goodwill and Other Intangible Assets: Other Intangible Assets. | |||||||
[2] | Income from continuing operations before provision for taxes on income. | |||||||
[3] | EPS amounts may not add due to rounding. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Net income before allocation to noncontrolling interests | $2,599 | $3,214 | $19,498 | $8,277 | ||||
Other Comprehensive Income/(Loss) | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | -21 | 153 | -1,068 | -1,565 | ||||
Reclassification adjustments(a) | 0 | [1] | 0 | [1] | 171 | [1] | 0 | [1] |
Other comprehensive income (loss), foreign currencey transaction and translation adjustment, before tax | -21 | 153 | -897 | -1,565 | ||||
Unrealized holding gains on derivative financial instruments | 490 | 455 | 336 | 242 | ||||
Reclassification adjustments for realized gains(b) | -313 | [2] | -221 | [2] | -64 | [2] | -94 | [2] |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Total | 177 | 234 | 272 | 148 | ||||
Unrealized holding gains/(losses) on available-for-sale securities | -156 | 26 | -57 | 101 | ||||
Reclassification adjustments for realized (gains)/losses(b) | -15 | [2] | -9 | [2] | -46 | [2] | 24 | [2] |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Total | -171 | 17 | -103 | 125 | ||||
Benefit plans: actuarial gains/(losses), net | -13 | -88 | 34 | -592 | ||||
Reclassification adjustments related to amortization(c) | 137 | [3] | 122 | [3] | 438 | [3] | 351 | [3] |
Reclassification adjustments related to curtailments/settlements, net(c) | 54 | [3] | 48 | [3] | 147 | [3] | 160 | [3] |
Foreign currency translation adjustments and other | -28 | -37 | 112 | 18 | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax, Total | 150 | 45 | 731 | -63 | ||||
Benefit plans: prior service (costs)/credits and other | 0 | -3 | 3 | 23 | ||||
Reclassification adjustments related to amortization(c) | -16 | [3] | -20 | [3] | -45 | [3] | -54 | [3] |
Reclassification adjustments related to curtailments/settlements, net(c) | 0 | [3] | -4 | [3] | -9 | [3] | -86 | [3] |
Other | 2 | 5 | -4 | 1 | ||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost, before Tax | -14 | -22 | -55 | -116 | ||||
Other comprehensive income/(loss), before tax | 121 | 427 | -52 | -1,471 | ||||
Tax provision on other comprehensive income/(loss)(d) | 80 | [4] | 73 | [4] | 443 | [4] | 72 | [4] |
Other comprehensive income/(loss) before allocation to noncontrolling interests | 41 | 354 | -495 | -1,543 | ||||
Comprehensive Income | ' | ' | ' | ' | ||||
Comprehensive income before allocation to noncontrolling interests | 2,640 | 3,568 | 19,003 | 6,734 | ||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | -32 | 5 | -2 | 3 | ||||
Comprehensive income attributable to Pfizer Inc. | $2,672 | $3,563 | $19,005 | $6,731 | ||||
[1] | Primarily reclassified into Gain on disposal of discontinued operations—net of tax in the condensed consolidated statements of income. | |||||||
[2] | Reclassified into Other (income)/deductions—net in the condensed consolidated statements of income. | |||||||
[3] | Generally reclassified, as part of net periodic pension cost, into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, in the condensed consolidated statements of income. For additional information, see Note 10. Pension and Postretirement Benefit Plans. | |||||||
[4] | See Note 5C. Tax Matters: Taxes on Items of Other Comprehensive Income/(Loss). |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $2,052 | $10,081 | ||
Short-term investments | 31,627 | 22,318 | ||
Accounts receivable, less allowance for doubtful accounts | 11,371 | 11,456 | ||
Inventories | 6,482 | 6,076 | ||
Taxes and other current assets | 7,835 | 8,956 | ||
Assets of discontinued operations and other assets held for sale | 133 | 5,944 | ||
Total current assets | 59,500 | 64,831 | ||
Long-term investments | 15,731 | 14,149 | ||
Property, plant and equipment, less accumulated depreciation | 12,359 | 13,213 | ||
Goodwill | 42,400 | 43,661 | ||
Identifiable intangible assets, less accumulated amortization | 40,549 | [1] | 45,146 | [1] |
Taxes and other noncurrent assets | 4,982 | 4,798 | ||
Total assets | 175,521 | 185,798 | ||
Liabilities and Equity | ' | ' | ||
Short-term borrowings, including current portion of long-term debt | 4,738 | [2],[3] | 6,424 | [2],[3] |
Accounts payable | 2,287 | 2,921 | ||
Dividends payable | 1 | 1,733 | ||
Income taxes payable | 802 | 979 | ||
Accrued compensation and related items | 1,750 | 1,875 | ||
Other current liabilities | 10,774 | 13,812 | ||
Liabilities of discontinued operations | 21 | 1,442 | ||
Total current liabilities | 20,373 | 29,186 | ||
Long-term debt | 31,812 | [2],[4] | 31,036 | [2],[4] |
Pension benefit obligations | 7,588 | 7,782 | ||
Postretirement benefit obligations | 3,423 | 3,491 | ||
Noncurrent deferred tax liabilities | 22,432 | 21,193 | ||
Other taxes payable | 7,024 | 6,581 | ||
Other noncurrent liabilities | 4,515 | 4,851 | ||
Total liabilities | 97,167 | 104,120 | ||
Commitments and Contingencies | ' | ' | ||
Preferred stock | 35 | 39 | ||
Common stock | 452 | 448 | ||
Additional paid-in capital | 76,756 | 72,608 | ||
Treasury stock | -63,272 | -40,122 | ||
Retained earnings | 70,381 | 54,240 | ||
Accumulated other comprehensive loss | -6,383 | -5,953 | ||
Total Pfizer Inc. shareholders’ equity | 77,969 | 81,260 | ||
Equity attributable to noncontrolling interests | 385 | 418 | ||
Total equity | 78,354 | 81,678 | ||
Total liabilities and equity | $175,521 | $185,798 | ||
[1] | The decrease is primarily related to amortization, asset impairment charges and the transfer of certain product rights to our equity-method investment in China. For additional information about the asset impairment charges, see Note 4. Other (Income)/Deductions—Net. For additional information about the transfer of certain product rights, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |||
[2] | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | |||
[3] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | |||
[4] | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | ||
Operating Activities | ' | ' | ||
Net income before allocation to noncontrolling interests | $19,498 | $8,277 | ||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ' | ' | ||
Depreciation and amortization | 4,818 | 5,548 | ||
Share-based compensation expense | 418 | 362 | ||
Gain associated with the transfer of certain product rights to an equity-method investment | -459 | [1] | 0 | [1] |
Asset write-offs and impairment charges | 926 | 865 | ||
Gain on disposal of discontinued operations | -10,501 | 0 | ||
Deferred taxes from continuing operations | 1,667 | 130 | ||
Deferred taxes from discontinued operations | -23 | -10 | ||
Benefit plan expense in excess of contributions | 258 | 86 | ||
Other non-cash adjustments, net | -311 | -118 | ||
Other changes in assets and liabilities, net of acquisitions and divestitures | -4,312 | -3,342 | ||
Net cash provided by operating activities | 11,979 | 11,798 | ||
Investing Activities | ' | ' | ||
Purchases of property, plant and equipment | -789 | -833 | ||
Purchases of short-term investments | -33,927 | -14,587 | ||
Proceeds from redemptions and sales of short-term investments | 29,008 | 19,377 | ||
Net (purchases of)/proceeds from redemptions and sales of short-term investments with original maturities of 90 days or less | -2,177 | 1,483 | ||
Purchases of long-term investments | -8,746 | -8,694 | ||
Proceeds from redemptions and sales of long-term investments | 5,943 | 3,357 | ||
Acquisitions, net of cash acquired | -15 | -782 | ||
Other investing activities | -2 | -4 | ||
Net cash used in investing activities | -10,705 | -683 | ||
Financing Activities | ' | ' | ||
Proceeds from short-term borrowings | 3,723 | 5,700 | ||
Principal payments on short-term borrowings | -3,776 | -5,882 | ||
Net proceeds from/(payments on) short-term borrowings with original maturities of 90 days or less | 1,831 | -176 | ||
Proceeds from issuance of long-term debt(a) | 6,618 | [2] | 0 | [2] |
Principal payments on long-term debt | -2,396 | -14 | ||
Purchases of common stock | -11,643 | -4,834 | ||
Cash dividends paid | -5,026 | -4,915 | ||
Proceeds from exercise of stock options and other financing activities | 1,438 | 355 | ||
Net cash used in financing activities | -9,231 | -9,766 | ||
Effect of exchange-rate changes on cash and cash equivalents | -72 | -25 | ||
Net increase/(decrease) in cash and cash equivalents | -8,029 | 1,324 | ||
Cash and cash equivalents, beginning | 10,081 | 3,182 | ||
Cash and cash equivalents, end | 2,052 | 4,506 | ||
Non-cash transactions: | ' | ' | ||
Sale of Zoetis (our Animal Health business) for Pfizer common stock(b) | 11,408 | [3] | 0 | [3] |
Exchange of Zoetis common stock for the retirement of Pfizer commercial paper issued in 2013(b) | 2,479 | [3] | 0 | [3] |
Exchange of Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012(b) | 992 | [3] | 0 | [3] |
Transfer of certain product rights to an equity-method investment(c) | 1,233 | [4] | 0 | [4] |
Cash paid during the period for: | ' | ' | ||
Income taxes | 1,799 | 1,895 | ||
Interest | $1,512 | $1,675 | ||
[1] | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |||
[2] | Includes $2.6 billion from the issuance of senior notes by Zoetis, our former Animal Health subsidiary, net of the non-cash exchange of Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012. See Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||
[3] | See Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment: Divestitures. | |||
[4] | See Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | |
Proceeds from issuance of long-term debt(a) | $6,618 | [1] |
Zoetis [Member] | ' | |
Proceeds from issuance of long-term debt(a) | $2,600 | |
[1] | Includes $2.6 billion from the issuance of senior notes by Zoetis, our former Animal Health subsidiary, net of the non-cash exchange of Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012. See Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended | |
Sep. 29, 2013 | ||
Organization Consolidation And Presentation Of Financial Statements And Accounting Policies [Abstract] | ' | |
Basis of Presentation and Significant Accounting Policies | ' | |
Basis of Presentation and Significant Accounting Policies | ||
A. Basis of Presentation | ||
We prepared the condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. | ||
Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three and nine months ended August 25, 2013 and August 26, 2012. | ||
On June 24, 2013, we completed the full disposition of our Animal Health business (Zoetis), and recognized a gain of approximately $10.4 billion, net of tax, related to the disposal of this business in Gain on disposal of discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013. The operating results of this business are reported as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013 and for the three and nine months ended September 30, 2012. In addition, in the condensed consolidated balance sheet as of December 31, 2012, the assets and liabilities associated with this business are classified as Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, as appropriate. Prior period financial statements have been restated. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||
On November 30, 2012, we completed the sale of our Nutrition business to Nestlé. The operating results of this business are reported as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the three and nine months ended September 30, 2012. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||
Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. | ||
We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our condensed consolidated balance sheets and condensed consolidated statements of income. | ||
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2012 Annual Report on Form 10-K/A. | ||
B. Adoption of New Accounting Standards | ||
There were no new accounting and disclosure standards adopted in the nine months ended September 29, 2013. | ||
C. Fair Value | ||
Our fair value methodologies depend on the following types of inputs: | ||
• | Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). | |
• | Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). | |
• | Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). | |
A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. |
Acquisitions_Divestitures_Coll
Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Business Combinations, Discontinued Operations, And Disposal Groups [Abstract] | ' | ||||||||||||||||
Acquisitions and Divestitures | ' | ||||||||||||||||
Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments | |||||||||||||||||
A. Acquisitions | |||||||||||||||||
NextWave Pharmaceuticals, Inc. | |||||||||||||||||
In the first quarter of 2013, we finalized the allocation of the consideration transferred to the assets acquired and the liabilities assumed in the acquisition of NextWave Pharmaceuticals Incorporated (NextWave), a privately held, specialty pharmaceutical company, completed on November 27, 2012. The total consideration for the acquisition was approximately $442 million, which consisted of upfront payments to NextWave's shareholders of approximately $278 million and contingent consideration with an estimated acquisition-date fair value of approximately $164 million. We recorded $519 million in Identifiable intangible assets, consisting of $474 million in Developed technology rights and $45 million in In-process research and development; $166 million in net deferred tax liabilities; and $89 million in Goodwill. In the third quarter and the first nine months of 2013, as a result of lowered commercial forecasts, the fair value of the contingent consideration decreased and we recognized a pre-tax gain of approximately $128 million and $109 million, respectively, in Other (income)/deductions––net. | |||||||||||||||||
Alacer Corp. | |||||||||||||||||
On February 26, 2012, we completed our acquisition of Alacer Corp., a company that manufactures, markets and distributes Emergen-C, a line of effervescent, powdered drink mix vitamin supplements that is the largest-selling branded vitamin C line in the U.S. In connection with this Consumer Healthcare acquisition, we recorded $181 million in Identifiable intangible assets, consisting primarily of the Emergen-C indefinite-lived brand; $69 million in net deferred tax liabilities; and $192 million in Goodwill. | |||||||||||||||||
Ferrosan Holding A/S | |||||||||||||||||
On December 1, 2011, we completed our acquisition of the consumer healthcare business of Ferrosan Holding A/S (Ferrosan), a Danish company engaged in the sale of science-based consumer healthcare products, including dietary supplements and lifestyle products, primarily in the Nordic region and the emerging markets of Russia and Central and Eastern Europe. This acquisition is reflected in our condensed consolidated financial statements beginning in the first fiscal quarter of 2012. Our acquisition of Ferrosan’s consumer healthcare business increases our presence in dietary supplements with a new set of brands and pipeline products. Also, we believe that the acquisition allows us to expand the marketing of Ferrosan’s brands through Pfizer’s global footprint and provide greater distribution and scale for certain Pfizer brands, such as Centrum and Caltrate, in Ferrosan’s key markets. In connection with this Consumer Healthcare acquisition, we recorded $362 million in Identifiable intangible assets, consisting of indefinite-lived and finite-lived brands; $94 million in net deferred tax liabilities; and $322 million in Goodwill. | |||||||||||||||||
B. Divestitures | |||||||||||||||||
Animal Health Business—Zoetis Inc. | |||||||||||||||||
On June 24, 2013, we completed the full disposition of our Animal Health business (Zoetis). The full disposition was completed through a series of steps, including the formation of Zoetis, an initial public offering (IPO) of an approximate 19.8% interest in Zoetis and an exchange offer for the remaining 80.2% interest. | |||||||||||||||||
Formation of Zoetis—On January 28, 2013, our then wholly owned subsidiary, Zoetis, issued $3.65 billion aggregate principal amount of senior notes. Also, on January 28, 2013, we transferred to Zoetis substantially all of the assets and liabilities of our Animal Health business in exchange for all of the Class A and Class B common stock of Zoetis, $1.0 billion of the $3.65 billion of Zoetis senior notes, and an amount of cash equal to substantially all of the cash proceeds received by Zoetis from the remaining $2.65 billion of senior notes issued. The $1.0 billion of Zoetis senior notes received by Pfizer were exchanged by Pfizer for the retirement of Pfizer commercial paper issued in 2012, and the cash proceeds received by Pfizer of approximately $2.6 billion were used for dividends and stock buybacks. | |||||||||||||||||
Initial Public Offering (19.8% Interest)—On February 6, 2013, an IPO of the Class A common stock of Zoetis was completed, pursuant to which we sold 99.015 million shares of Class A common stock of Zoetis (all of the Class A common stock, including shares sold pursuant to the underwriters' overallotment option to purchase additional shares, which was exercised in full) in exchange for the retirement of approximately $2.5 billion of Pfizer commercial paper issued in 2013. The Class A common stock sold in the IPO represented approximately 19.8% of the total outstanding Zoetis shares. The excess of the consideration received over the net book value of our divested interest was approximately $2.3 billion and was recorded in Additional paid-in capital. For additional information, see Note 6. Certain Changes in Total Equity. | |||||||||||||||||
Exchange Offer (80.2% Interest)—On June 24, 2013, we exchanged all of our remaining interest in Zoetis, 400.985 million shares of Class A common stock of Zoetis (after converting all of our Class B common stock into Class A common stock, representing approximately 80.2% of the total outstanding Zoetis shares), for approximately 405.117 million outstanding shares of Pfizer common stock on a tax-free basis pursuant to an exchange offer made to Pfizer shareholders. The $11.4 billion of Pfizer common stock received in the exchange transaction was recorded in Treasury stock and was valued using the opening price of Pfizer common stock on June 24, 2013, the date we accepted the Zoetis shares for exchange. For additional information, see Note 6. Certain Changes in Total Equity. The gain on the sale of the remaining interest in Zoetis was approximately $10.4 billion, net of income taxes resulting from certain legal entity reorganizations, and was recorded in Gain on disposal of discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013. | |||||||||||||||||
In summary, as a result of the above transactions, we received approximately $6.1 billion of cash and Treasury stock valued at $11.4 billion. | |||||||||||||||||
The operating results of the animal health business are reported as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013 (through the disposal date) and for the three and nine months ended September 30, 2012. In addition, in the condensed consolidated balance sheet as of December 31, 2012, the assets and liabilities associated with this business are classified as Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, as appropriate. Prior period financial statements have been restated. | |||||||||||||||||
In connection with the above transactions, we entered into a transitional services agreement (TSA) and manufacturing and supply agreements (MSAs) with Zoetis that are designed to facilitate the orderly transfer of business operations to the standalone Zoetis entity. The TSA relates primarily to administrative services, which are generally to be provided within 24 months. Under the MSAs, we will manufacture and supply certain animal health products to Zoetis for a transitional period of up to 5 years, with an ability to extend, if necessary, upon mutual agreement of both parties. These agreements are not material and none confers upon us the ability to influence the operating and/or financial policies of Zoetis subsequent to June 24, 2013, the full disposition date. | |||||||||||||||||
Nutrition Business | |||||||||||||||||
On November 30, 2012, we completed the sale of our Nutrition business to Nestlé for $11.85 billion in cash, and recognized a gain of approximately $4.8 billion, net of tax. The divested business includes: | |||||||||||||||||
• | our former Nutrition operating segment and certain prenatal vitamins previously commercialized by the Pfizer Consumer Healthcare operating segment; and | ||||||||||||||||
• | other associated amounts, such as direct manufacturing costs, enabling support functions and other costs not charged to the business, purchase-accounting impacts, acquisition-related costs, impairment charges, restructuring charges and implementation costs associated with our cost-reduction/productivity initiatives, all of which are reported outside our operating segment results. | ||||||||||||||||
The operating results of this business are classified as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the three and nine months ended September 30, 2012. | |||||||||||||||||
Total Discontinued Operations | |||||||||||||||||
The following table provides the components of Discontinued operations—net of tax: | |||||||||||||||||
Three Months Ended(a) | Nine Months Ended(a) | ||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | $ | — | $ | 1,587 | $ | 2,201 | $ | 4,817 | |||||||||
Pre-tax income from discontinued operations(a) | $ | 32 | $ | 314 | $ | 421 | $ | 1,110 | |||||||||
Provision for taxes on income(b) | (4 | ) | 89 | 95 | 376 | ||||||||||||
Income from discontinued operations––net of tax | 36 | 225 | 326 | 734 | |||||||||||||
Pre-tax gain on disposal of discontinued operations | (38 | ) | — | 10,501 | — | ||||||||||||
Provision for taxes on income(c) | (13 | ) | — | 108 | — | ||||||||||||
Gain on disposal of discontinued operations––net of tax | (25 | ) | — | 10,393 | — | ||||||||||||
Discontinued operations––net of tax | $ | 11 | $ | 225 | $ | 10,719 | $ | 734 | |||||||||
(a) | Includes the Animal Health (Zoetis) business for the nine months ended September 29, 2013 (through the disposal date) and for the three and nine months ended September 30, 2012, and the Nutrition business for the three and nine months ended September 30, 2012. For the three months ended September 29, 2013, includes certain post-close adjustments. | ||||||||||||||||
(b) | Includes a deferred tax benefit of $4 million and $30 million for the three months ended September 29, 2013 and September 30, 2012, respectively, and a deferred tax benefit of $23 million and $10 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. These deferred tax provisions include deferred taxes related to investments in certain foreign subsidiaries resulting from our intention not to hold these subsidiaries indefinitely. | ||||||||||||||||
(c) | For the nine months ended September 29, 2013, primarily reflects income taxes resulting from certain legal entity reorganizations. | ||||||||||||||||
The following table provides the components of Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations: | |||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable, less allowance for doubtful accounts | $ | — | $ | 922 | |||||||||||||
Inventories | — | 1,137 | |||||||||||||||
Other current assets | — | 550 | |||||||||||||||
Property, plant and equipment, less accumulated depreciation | 133 | 1,318 | |||||||||||||||
Goodwill | — | 1,011 | |||||||||||||||
Identifiable intangible assets, less accumulated amortization | — | 867 | |||||||||||||||
Other noncurrent assets | — | 139 | |||||||||||||||
Assets of discontinued operations and other assets held for sale | $ | 133 | $ | 5,944 | |||||||||||||
Current liabilities | $ | 21 | $ | 874 | |||||||||||||
Other liabilities | — | 568 | |||||||||||||||
Liabilities of discontinued operations | $ | 21 | $ | 1,442 | |||||||||||||
The net cash flows of our discontinued operations for each of the categories of operating, investing and financing activities are not significant for the nine months ended September 29, 2013 and September 30, 2012. | |||||||||||||||||
C. Collaborative Arrangement | |||||||||||||||||
Collaboration for ertugliflozin | |||||||||||||||||
On April 29, 2013, we announced that we had entered into a worldwide, except Japan, collaboration agreement with Merck & Co., Inc. (Merck) for the development and commercialization of Pfizer's ertugliflozin (PF-04971729), an investigational oral sodium glucose cotransporter (SGLT2) inhibitor currently in Phase 3 development for the treatment of type 2 diabetes. Under the terms of the agreement, we will collaborate with Merck on the clinical development and commercialization of ertugliflozin, and ertugliflozin-containing fixed-dose combinations with metformin and Januvia (sitagliptin) tablets. Merck will continue to retain the rights to its existing portfolio of sitagliptin-containing products. Through September 29, 2013, we received payments totaling $60 million and we will be eligible for additional payments associated with the achievement of future clinical, regulatory and commercial milestones. The payments received to date have been deferred and are being recognized in Other (income)/deductions––net over a multi-year period. We will share potential revenues and certain costs with Merck on a 60%/40% basis, with Pfizer having the 40% share. Each party has the right to terminate the agreement at certain times under certain circumstances, with various resulting rights and obligations depending on the nature of the termination. | |||||||||||||||||
D. Equity-Method Investments | |||||||||||||||||
Investment in ViiV Healthcare Limited | |||||||||||||||||
On August 12, 2013, the U.S. Food and Drug Administration (FDA) approved Tivicay (dolutegravir), a product for the treatment of HIV-1 infection, developed by ViiV Healthcare Limited (ViiV), an equity-method investee. This approval, in accordance with the agreement between GlaxoSmithKline plc and Pfizer, triggered a reduction in our interest in ViiV from 13.5% to 12.6% and an increase in GlaxoSmithKline plc's equity interest in ViiV from 76.5% to 77.4% effective October 1, 2013. As a result, in the third quarter of 2013, we recognized a loss of approximately $31 million in Other (income)/deductions––net. We continue to account for our investment in ViiV under the equity method due to the significant influence that we continue to have through our board representation and minority veto rights. | |||||||||||||||||
Investment in Hisun Pfizer Pharmaceuticals Company Limited | |||||||||||||||||
On September 6, 2012, we and Zhejiang Hisun Pharmaceuticals Co., Ltd., a leading pharmaceutical company in China, formed a new company, Hisun Pfizer Pharmaceuticals Company Limited (Hisun Pfizer), to develop, manufacture, market and sell pharmaceutical products, primarily branded generic products, predominately in China. Hisun Pfizer was established with registered capital of $250 million, of which our portion was $122.5 million. On January 1, 2013, both parties transferred selected employees to Hisun Pfizer and contributed, among other things, certain rights to commercialized products and products in development, intellectual property rights, and facilities, equipment and distribution/customer contracts. Our contributions in 2013 constituted a business, as defined by U.S. GAAP, and included, among other things, the China rights to certain commercialized products and other products not yet commercialized and all associated intellectual property rights. As a result of the contributions from both parties, Hisun Pfizer holds a broad portfolio of branded generics covering cardiovascular disease, infectious disease, oncology, mental health, and other therapeutic areas. We hold a 49% equity interest in Hisun Pfizer. | |||||||||||||||||
We also entered into certain transition agreements designed to ensure and facilitate the orderly transfer of the business operations to Hisun Pfizer, primarily the Pfizer Products Transition Period Agreement and a related supply and promotional services agreement. These agreements provide for a profit margin on the manufacturing services provided by Pfizer to Hisun Pfizer and govern the supply, promotion and distribution of Pfizer products until Hisun Pfizer begins its own manufacturing and distribution. While intended to be transitional, these agreements may be extended by mutual agreement of the parties for several years and, possibly, indefinitely. These agreements are not material to Pfizer, and none confers upon us any additional ability to influence the operating and/or financial policies of Hisun Pfizer. | |||||||||||||||||
In connection with our contributions in the first quarter of 2013, we recognized a pre-tax gain of approximately $459 million in Other (income)/deductions––net, reflecting the transfer of the business to Hisun Pfizer (including an allocation of goodwill from our Emerging Markets reporting unit as part of the carrying amount of the business transferred). Since we hold a 49% interest in Hisun Pfizer, we have an indirect retained interest in the contributed assets; as such, 49% of the gain, or $225 million, represents the portion of the gain associated with that indirect retained interest. | |||||||||||||||||
In valuing our investment in Hisun Pfizer (which includes the indirect retained interest in the contributed assets), we used discounted cash flow techniques, utilizing a 11.5% discount rate, reflecting our best estimate of the various risks inherent in the projected cash flows, and a nominal terminal year growth factor. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which include the expected impact of competitive, legal and/or regulatory forces on the products; the long-term growth rate, which seeks to project the sustainable growth rate over the long-term; and the discount rate, which seeks to reflect the various risks inherent in the projected cash flows, including country risk. | |||||||||||||||||
We are accounting for our interest in Hisun Pfizer as an equity-method investment, due to the significant influence we have over the operations of Hisun Pfizer through our board representation, minority veto rights and 49% voting interest. Our investment in Hisun Pfizer is reported as a private equity investment in Long-term investments, and our share of Hisun Pfizer's net income is recorded in Other (income)/deductions––net. As of September 29, 2013, the carrying value of our investment in Hisun Pfizer is approximately $1.4 billion, and the amount of our underlying equity in the net assets of Hisun Pfizer is approximately $750 million. The excess of the carrying value of our investment over our underlying equity in the net assets of Hisun Pfizer has been allocated, within the investment account, to goodwill and other intangible assets. The amount allocated to other intangible assets is being amortized into Other (income)/deductions––net over an average estimated useful life of 25 years. |
Restructuring_Charges_and_Othe
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | ' | ||||||||||||||||||||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | |||||||||||||||||||||
We incur significant costs in connection with acquiring, integrating and restructuring businesses and in connection with our global cost-reduction/productivity initiatives. For example: | |||||||||||||||||||||
• | In connection with acquisition activity, we typically incur costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and | ||||||||||||||||||||
• | In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges associated with site closings and other facility rationalization actions, workforce reductions and the expansion of shared services, including the development of global systems. | ||||||||||||||||||||
All of our businesses and functions may be impacted by these actions, including sales and marketing, manufacturing and research and development, as well as groups such as information technology, shared services and corporate operations. Since the acquisition of Wyeth on October 15, 2009, our cost-reduction initiatives announced on January 26, 2009, but not completed as of December 31, 2009, were incorporated into a comprehensive plan to integrate Wyeth’s operations to generate cost savings and to capture synergies across the combined company. In addition, among our ongoing cost-reduction/productivity initiatives, on February 1, 2011, we announced a new productivity initiative to accelerate our strategies to improve innovation and productivity in R&D by prioritizing areas that we believe have the greatest scientific and commercial promise, utilizing appropriate risk/return profiles and focusing on areas with the highest potential to deliver value in the near term and over time. | |||||||||||||||||||||
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) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restructuring charges(a): | |||||||||||||||||||||
Employee terminations | $ | 174 | $ | 132 | $ | 289 | $ | 439 | |||||||||||||
Asset impairments | — | 33 | 115 | 279 | |||||||||||||||||
Exit costs | 21 | 68 | 36 | 88 | |||||||||||||||||
Total restructuring charges | 195 | 233 | 440 | 806 | |||||||||||||||||
Integration costs(b) | 38 | 79 | 107 | 279 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 233 | 312 | 547 | 1,085 | |||||||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | |||||||||||||||||||||
Cost of sales | 43 | 75 | 134 | 205 | |||||||||||||||||
Selling, informational and administrative expenses | — | 1 | 19 | 7 | |||||||||||||||||
Research and development expenses | — | — | 94 | 259 | |||||||||||||||||
Total additional depreciation––asset restructuring | 43 | 76 | 247 | 471 | |||||||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | |||||||||||||||||||||
Cost of sales | 16 | 18 | 27 | 22 | |||||||||||||||||
Selling, informational and administrative expenses | 30 | 47 | 95 | 77 | |||||||||||||||||
Research and development expenses | 1 | 47 | 10 | 132 | |||||||||||||||||
Total implementation costs | 47 | 112 | 132 | 231 | |||||||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 323 | $ | 500 | $ | 926 | $ | 1,787 | |||||||||||||
(a) | From the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013, Employee terminations represent the expected reduction of the workforce by approximately 63,500 employees, mainly in manufacturing, sales and research, of which approximately 57,000 employees have been terminated as of September 29, 2013. For the nine months ended September 29, 2013, substantially all employee termination costs represent additional costs with respect to approximately 1,300 employees. | ||||||||||||||||||||
The restructuring charges in 2013 are associated with the following: | |||||||||||||||||||||
• | For the three months ended September 29, 2013, Primary Care operating segment ($12 million), Specialty Care and Oncology operating segment ($18 million), Established Products and Emerging Markets operating segment ($4 million), Consumer Healthcare operating segment ($5 million), manufacturing operations ($112 million) and Corporate ($44 million). | ||||||||||||||||||||
• | For the nine months ended September 29, 2013, Primary Care operating segment ($29 million), Specialty Care and Oncology operating segment ($37 million), Established Products and Emerging Markets operating segment ($34 million), Consumer Healthcare operating segment ($6 million), research and development operations ($15 million), manufacturing operations ($194 million) and Corporate ($125 million). | ||||||||||||||||||||
The restructuring charges in 2012 are associated with the following: | |||||||||||||||||||||
• | For the three months ended September 30, 2012, Primary Care operating segment ($83 million), Specialty Care and Oncology operating segment ($60 million), Established Products and Emerging Markets operating segment ($16 million), Consumer Healthcare operating segment ($5 million), research and development operations ($39 million income), manufacturing operations ($48 million) and Corporate ($60 million). | ||||||||||||||||||||
• | For the nine months ended September 30, 2012, Primary Care operating segment ($51 million), Specialty Care and Oncology operating segment ($79 million), Established Products and Emerging Markets operating segment ($20 million), Consumer Healthcare operating segment ($18 million), research and development operations ($14 million income), manufacturing operations ($214 million) and Corporate ($438 million). | ||||||||||||||||||||
(b) | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | ||||||||||||||||||||
(c) | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||||||||||||||||||
(d) | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. | ||||||||||||||||||||
The following table provides the components of and changes in our restructuring accruals: | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Employee | Asset | Exit Costs | Accrual | |||||||||||||||||
Termination | Impairment | ||||||||||||||||||||
Costs | Charges | ||||||||||||||||||||
Balance, December 31, 2012(a) | $ | 1,734 | $ | — | $ | 152 | $ | 1,886 | |||||||||||||
Provision | 289 | 115 | 36 | 440 | |||||||||||||||||
Utilization and other(b) | (741 | ) | (115 | ) | (109 | ) | (965 | ) | |||||||||||||
Balance, September 29, 2013(c) | $ | 1,282 | $ | — | $ | 79 | $ | 1,361 | |||||||||||||
(a) | Included in Other current liabilities ($1.2 billion) and Other noncurrent liabilities ($720 million). | ||||||||||||||||||||
(b) | Includes adjustments for foreign currency translation. | ||||||||||||||||||||
(c) | Included in Other current liabilities ($717 million) and Other noncurrent liabilities ($644 million). | ||||||||||||||||||||
Total restructuring charges incurred from the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013 were $16.1 billion. | |||||||||||||||||||||
The asset impairment charges included in restructuring charges for the nine months ended September 29, 2013 primarily relate to assets held for sale and are based on an estimate of fair value, which was determined to be lower than the carrying value of the assets prior to the impairment charge. | |||||||||||||||||||||
The following table provides additional information about the long-lived assets that were impaired during the first nine months of 2013 in Restructuring charges and certain acquisition-related costs: | |||||||||||||||||||||
Fair Value(a) | Nine Months Ended September 29, | ||||||||||||||||||||
2013 | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Assets held for sale(b) | $ | 84 | $ | — | $ | 84 | $ | — | $ | 64 | |||||||||||
Assets abandoned/demolished | — | — | — | — | 51 | ||||||||||||||||
Long-lived assets | $ | 84 | $ | — | $ | 84 | $ | — | $ | 115 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects property, plant and equipment and other long-lived held-for-sale assets written down to their fair value, less costs to sell of $2 million (a net of $82 million), in the first nine months of 2013. Fair value was determined primarily using a market approach, with various inputs, such as recent sales transactions. |
Other_IncomeDeductions_Net
Other (Income)/Deductions - Net | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||||||
Other (Income)/Deductions-Net | ' | ||||||||||||||||||||
Other (Income)/Deductions—Net | |||||||||||||||||||||
The following table provides components of Other (income)/deductions––net: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest income(a) | $ | (94 | ) | $ | (109 | ) | $ | (291 | ) | $ | (275 | ) | |||||||||
Interest expense(a) | 340 | 381 | 1,067 | 1,149 | |||||||||||||||||
Net interest expense | 246 | 272 | 776 | 874 | |||||||||||||||||
Royalty-related income | (122 | ) | (149 | ) | (305 | ) | (343 | ) | |||||||||||||
Patent litigation settlement income(b) | 9 | — | (1,342 | ) | — | ||||||||||||||||
Other legal matters, net(c) | 1 | 727 | (94 | ) | 2,014 | ||||||||||||||||
Gain associated with the transfer of certain product rights to an equity-method investment(d) | — | — | (459 | ) | — | ||||||||||||||||
Net gain on asset disposals | (46 | ) | (21 | ) | (100 | ) | (45 | ) | |||||||||||||
Certain asset impairments and related charges(e) | 443 | 14 | 968 | 524 | |||||||||||||||||
Costs associated with the Zoetis IPO(f) | — | 32 | 18 | 93 | |||||||||||||||||
Other, net(g) | (120 | ) | 62 | 24 | 147 | ||||||||||||||||
Other (income)/deductions––net | $ | 411 | $ | 937 | $ | (514 | ) | $ | 3,264 | ||||||||||||
(a) | Interest income decreased in the third quarter of 2013 as portfolio maturities were invested at lower rates; however, during the first nine months of 2013, interest income increased due to higher cash and investment balances. Interest expense decreased in the third quarter and first nine months of 2013 due to lower outstanding debt, refinancings and lower rates, and the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | ||||||||||||||||||||
(b) | In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. (Teva) and Sun Pharmaceutical Industries Ltd. (Sun) for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States. As of September 29, 2013, the remaining receivables from Teva are included in Taxes and other current assets ($474 million) and Taxes and other noncurrent assets ($128 million). For additional information, see Note 12A5. Commitments and Contingencies: Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013. | ||||||||||||||||||||
(c) | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. | ||||||||||||||||||||
(d) | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||
(e) | In the third quarter of 2013, includes intangible asset impairment charges of $185 million, primarily reflecting (i) $95 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax, and (ii) $90 million related to one IPR&D compound (full write-off), as well as a loss of $223 million related to an option to acquire the remaining interest in Laboratório Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (an equity-method investment). In addition, the third quarter of 2013 includes an impairment charge of approximately $32 million related to the aforementioned equity-method investment in Brazil. | ||||||||||||||||||||
In the first nine months of 2013, includes intangible asset impairment charges of $674 million, primarily reflecting (i) $394 million of developed technology rights (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth, (ii) $171 million related to three IPR&D compounds, and (iii) $109 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax. The intangible asset impairment charges for 2013 reflect, among other things, updated commercial forecasts and, with regard to IPR&D, the impact of new scientific findings. The intangible asset impairment charges for the first nine months of 2013 are associated with the following: Specialty Care ($394 million), Established Products ($185 million), Worldwide Research and Development ($43 million), Primary Care ($38 million), and Consumer Healthcare ($14 million). In addition, the first nine months of 2013 include a loss of $223 million related to an option to acquire the remaining interest Teuto, a 40%-owned generics company in Brazil (an equity-method investment), an impairment charge of approximately $39 million for certain private company investments and an impairment charge of $32 million related to the aforementioned equity-method investment in Brazil, Teuto. | |||||||||||||||||||||
In the first nine months of 2012, includes intangible asset impairment charges of $457 million reflecting (i) $314 million of IPR&D, substantially all related to assets that targeted autoimmune and inflammatory diseases (full write-off), (ii) $45 million related to our Consumer Healthcare indefinite-lived brand, Robitussin, a cough suppressant, and (iii) $98 million related to three developed technology rights. The intangible asset impairment charges for 2012 reflect, among other things, the impact of new scientific findings, updated commercial forecasts and an increased competitive environment. The impairment charges for the first nine months of 2012 are associated with the following: Worldwide Research and Development ($297 million); Consumer Healthcare ($45 million); Established Products ($44 million); Primary Care ($52 million) and Specialty Care ($19 million). In addition, the first nine months of 2012 includes charges of approximately $67 million for certain investments. These investment impairment charges reflect the difficult global economic environment. | |||||||||||||||||||||
(f) | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||||||||||||||||||||
(g) In the third quarter and first nine months of 2013, includes the gain of approximately $128 million and $109 million, respectively, reflecting the change in the fair value of the contingent consideration associated with our acquisition of NextWave. For additional information, see Note 2A. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Acquisitions. | |||||||||||||||||||||
The asset impairment charges included in Other (income)/deductions––net for the first nine months of 2013 primarily relate to identifiable intangible assets and are based on estimates of fair value. | |||||||||||||||||||||
The following table provides additional information about the intangible assets that were impaired during the first nine months of 2013 in Other (income)/deductions––net: | |||||||||||||||||||||
Fair Value(a) | Nine Months Ended September 29, | ||||||||||||||||||||
2013 | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Intangible assets––Developed technology rights(b) | $ | 564 | $ | — | $ | — | $ | 564 | $ | 394 | |||||||||||
Intangible assets––Brands(b) | 1,499 | — | — | 1,499 | 109 | ||||||||||||||||
Intangible assets––IPR&D(b) | 220 | — | — | 220 | 171 | ||||||||||||||||
Total | $ | 2,283 | $ | — | $ | — | $ | 2,283 | $ | 674 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects intangible assets written down to their fair value in the first nine months of 2013. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters
Tax Matters | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Tax Matters | ' | ||||||||||||||||
Tax Matters | |||||||||||||||||
A. Taxes on Income from Continuing Operations | |||||||||||||||||
Our effective tax rate for continuing operations was 27.6% for the third quarter of 2013, compared to (6.5)% for the third quarter of 2012, and was 30.6% for the first nine months of 2013, compared to 17.7% for the first nine months of 2012. | |||||||||||||||||
The unfavorable change in the effective tax rate for both periods reflects favorable audit settlements in the third quarter and first nine months of 2012; specifically, (i) a tax benefit of approximately $1.1 billion (representing tax and interest) recorded in connection with a settlement with the U.S. Internal Revenue Service (IRS) related to audits for multiple tax years (2006-2008), as well as (ii) a tax benefit recorded for the resolution of foreign audits pertaining to multiple tax years. | |||||||||||||||||
In addition, the unfavorable comparison of the first nine months of 2013 to the first nine months of 2012 reflects, to a lesser extent, (i) the tax rate associated with the patent litigation settlement income, (ii) the non-deductibility of the goodwill derecognized and the jurisdictional mix of the other intangible assets divested as part of the transfer of certain product rights to our equity-method investment in China and (iii) the non-deductibility of the loss on an option to acquire the remaining interest in Teuto, a 40%-owned generics company in Brazil, since we expect to retain the investment indefinitely, partially offset by (i) the extension of the U.S. R&D tax credit (resulting in the full-year benefit of the 2012 R&D tax credit and the year-to-date 2013 R&D tax credit being recorded in the first nine months of 2013) and (ii) the change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business. For additional information about the patent litigation settlement income, see Note 12A5. Commitments and Contingencies: Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013. For additional information about the transfer of certain product rights to our equity-method investment in China, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |||||||||||||||||
B. Tax Contingencies | |||||||||||||||||
We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire. We treat these events as discrete items in the period of resolution. | |||||||||||||||||
The United States is one of our major tax jurisdictions, and we are regularly audited by the U.S. IRS: | |||||||||||||||||
• | With respect to Pfizer Inc., tax years 2009 and 2010 are currently under audit. Tax years 2011-2013 are open, but not under audit. All other tax years are closed. | ||||||||||||||||
• | With respect to Wyeth, tax years 2006 through the Wyeth acquisition date (October 15, 2009) are currently under audit. All other tax years are closed. | ||||||||||||||||
• | With respect to King Pharmaceuticals, Inc. (King), the audit for tax years 2009 and 2010 has been effectively settled in the third quarter of 2013. The tax year January 1, 2011 through the date of acquisition (January 31, 2011) is open, but not under audit. All other tax years are closed. The open tax year for King and its subsidiaries is not material to Pfizer Inc. | ||||||||||||||||
In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2001-2013), Japan (2013), Europe (2007-2013, primarily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany), Latin America (1998-2013, primarily reflecting Brazil and Mexico) and Puerto Rico (2007-2013). | |||||||||||||||||
C. Taxes on Items of Other Comprehensive Loss | |||||||||||||||||
The following table provides the components of tax provision on Other comprehensive income/(loss): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency translation adjustments(a) | $ | (2 | ) | $ | (23 | ) | $ | 88 | $ | 14 | |||||||
Unrealized holding gains on derivative financial instruments | 205 | 137 | 152 | 80 | |||||||||||||
Reclassification adjustments for realized gains | (132 | ) | (52 | ) | (43 | ) | (34 | ) | |||||||||
73 | 85 | 109 | 46 | ||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities | (16 | ) | 4 | 32 | 17 | ||||||||||||
Reclassification adjustments for realized (gains)/losses | (14 | ) | 3 | (19 | ) | 8 | |||||||||||
(30 | ) | 7 | 13 | 25 | |||||||||||||
Benefit plans: actuarial gains/(losses), net | (1 | ) | (39 | ) | 10 | (157 | ) | ||||||||||
Reclassification adjustments related to amortization | 49 | 44 | 155 | 129 | |||||||||||||
Reclassification adjustments related to curtailments/settlements, net | 18 | 20 | 54 | 59 | |||||||||||||
Foreign currency translation adjustments and other | (23 | ) | (12 | ) | 35 | 5 | |||||||||||
43 | 13 | 254 | 36 | ||||||||||||||
Benefit plans: prior service (costs)/credits and other | — | (2 | ) | 1 | 6 | ||||||||||||
Reclassification adjustments related to amortization | (5 | ) | (7 | ) | (17 | ) | (21 | ) | |||||||||
Reclassification adjustments related to curtailments/settlements, net | — | (2 | ) | (4 | ) | (34 | ) | ||||||||||
Other | 1 | 2 | (1 | ) | — | ||||||||||||
(4 | ) | (9 | ) | (21 | ) | (49 | ) | ||||||||||
Tax provision on other comprehensive income/(loss) | $ | 80 | $ | 73 | $ | 443 | $ | 72 | |||||||||
(a) | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. |
Certain_Changes_in_Total_Equit
Certain Changes in Total Equity | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Certain Changes in Total Equity | ' | ||||||||||||||||||||||||
Certain Changes in Total Equity | |||||||||||||||||||||||||
The change in Additional paid-in capital in the first nine months of 2013 reflects, among other things, the impact of share-based payment transactions and an increase of approximately $2.3 billion related to the completion of an IPO for a 19.8% interest in Zoetis, our former Animal Health subsidiary, in the first quarter of 2013. The Zoetis-related increase represents the excess of the consideration received over the book value of our divested interest, which was recorded in Additional paid-in capital as we retained control over Zoetis immediately after the IPO transaction. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||||||||||||||||||||||||
The change in Treasury stock in the first nine months of 2013 reflects, among other things, an increase of approximately $11.6 billion related to common stock acquired for cash and an increase of approximately $11.4 billion related to the divestment of the remaining 80.2% interest in Zoetis in the second quarter of 2013 through an exchange offer. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||||||||||||||||||||||||
The following table provides the changes, net of tax, in Accumulated other comprehensive loss, excluding noncontrolling interests: | |||||||||||||||||||||||||
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 Loss | |||||||||||||||||||
Balance, December 31, 2012 | $ | (177 | ) | $ | (88 | ) | $ | 163 | $ | (6,110 | ) | $ | 259 | $ | (5,953 | ) | |||||||||
Other comprehensive income/(loss)(a) | (920 | ) | 163 | (116 | ) | 477 | (34 | ) | (430 | ) | |||||||||||||||
Balance, September 29, 2013 | $ | (1,097 | ) | $ | 75 | $ | 47 | $ | (5,633 | ) | $ | 225 | $ | (6,383 | ) | ||||||||||
(a) | Amounts do not include foreign currency translation loss of $65 million attributable to noncontrolling interests for the first nine months of 2013. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||
A. Selected Financial Assets and Liabilities | |||||||||||||||||||||||||
The following table provides additional information about certain of our financial assets and liabilities: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Selected financial assets measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Trading securities(b) | $ | 122 | $ | 142 | |||||||||||||||||||||
Available-for-sale debt securities(c) | 42,534 | 32,584 | |||||||||||||||||||||||
Available-for-sale money market funds(d) | 1,533 | 1,727 | |||||||||||||||||||||||
Available-for-sale equity securities, excluding money market funds(c) | 379 | 263 | |||||||||||||||||||||||
Derivative financial instruments in receivable positions(e): | |||||||||||||||||||||||||
Interest rate swaps | 495 | 1,036 | |||||||||||||||||||||||
Foreign currency swaps | 524 | 194 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 143 | 152 | |||||||||||||||||||||||
45,730 | 36,098 | ||||||||||||||||||||||||
Other selected financial assets | |||||||||||||||||||||||||
Held-to-maturity debt securities, carried at amortized cost(c), (f) | 1,465 | 1,459 | |||||||||||||||||||||||
Private equity securities, carried at equity-method or at cost(f), (g) | 2,250 | 1,239 | |||||||||||||||||||||||
3,715 | 2,698 | ||||||||||||||||||||||||
Total selected financial assets | $ | 49,445 | $ | 38,796 | |||||||||||||||||||||
Financial liabilities measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Derivative financial instruments in a liability position(h): | |||||||||||||||||||||||||
Interest rate swaps | $ | 200 | $ | 33 | |||||||||||||||||||||
Foreign currency swaps | 188 | 428 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 208 | 243 | |||||||||||||||||||||||
596 | 704 | ||||||||||||||||||||||||
Other financial liabilities(i) | |||||||||||||||||||||||||
Short-term borrowings, carried at historical proceeds, as adjusted(f) | 4,738 | 6,424 | |||||||||||||||||||||||
Long-term debt, carried at historical proceeds, as adjusted(j), (k) | 31,812 | 31,036 | |||||||||||||||||||||||
36,550 | 37,460 | ||||||||||||||||||||||||
Total selected financial liabilities | $ | 37,146 | $ | 38,164 | |||||||||||||||||||||
(a) | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 or Level 3 inputs. | ||||||||||||||||||||||||
(b) | Trading securities are held in trust for legacy business acquisition severance benefits. | ||||||||||||||||||||||||
(c) | Gross unrealized gains and losses are not significant. | ||||||||||||||||||||||||
(d) | Includes $447 million as of September 29, 2013 and $408 million as of December 31, 2012 of money market funds held in trust in connection with the asbestos litigation involving Quigley Company, Inc., a wholly owned subsidiary. | ||||||||||||||||||||||||
(e) | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $14 million and foreign currency forward-exchange contracts with fair values of $65 million as of September 29, 2013; and, foreign currency forward-exchange contracts with fair values of $102 million as of December 31, 2012. | ||||||||||||||||||||||||
(f) | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | ||||||||||||||||||||||||
(g) | Our private equity securities represent investments in the life sciences sector. The increase in 2013 primarily reflects an increased investment in our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||
(h) | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $97 million and foreign currency forward-exchange contracts with fair values of $83 million as of September 29, 2013; and, foreign currency swaps with fair values of $129 million and foreign currency forward-exchange contracts with fair values of $141 million as of December 31, 2012. | ||||||||||||||||||||||||
(i) | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | ||||||||||||||||||||||||
(j) | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. | ||||||||||||||||||||||||
(k) | The fair value of our long-term debt (not including the current portion of long-term debt) is $36.4 billion as of September 29, 2013 and $37.5 billion as of December 31, 2012. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. | ||||||||||||||||||||||||
The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 925 | $ | 947 | |||||||||||||||||||||
Short-term investments | 31,627 | 22,318 | |||||||||||||||||||||||
Long-term investments | 15,731 | 14,149 | |||||||||||||||||||||||
Taxes and other current assets(a) | 200 | 296 | |||||||||||||||||||||||
Taxes and other noncurrent assets(b) | 962 | 1,086 | |||||||||||||||||||||||
$ | 49,445 | $ | 38,796 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Short-term borrowings, including current portion of long-term debt | $ | 4,738 | $ | 6,424 | |||||||||||||||||||||
Other current liabilities(c) | 222 | 330 | |||||||||||||||||||||||
Long-term debt | 31,812 | 31,036 | |||||||||||||||||||||||
Other noncurrent liabilities(d) | 374 | 374 | |||||||||||||||||||||||
$ | 37,146 | $ | 38,164 | ||||||||||||||||||||||
(a) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($35 million), foreign currency swaps ($22 million) and foreign currency forward-exchange contracts ($143 million) and, as of December 31, 2012, include foreign currency swaps ($144 million) and foreign currency forward-exchange contracts ($152 million). | ||||||||||||||||||||||||
(b) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($460 million) and foreign currency swaps ($502 million) and, as of December 31, 2012, include interest rate swaps ($1.0 billion) and foreign currency swaps ($50 million). | ||||||||||||||||||||||||
(c) | As of September 29, 2013, derivative instruments at fair value include foreign currency swaps ($14 million) and foreign currency forward-exchange contracts ($208 million) and, as of December 31, 2012, include foreign currency swaps ($87 million) and foreign currency forward-exchange contracts ($243 million). | ||||||||||||||||||||||||
(d) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($200 million) and foreign currency swaps ($174 million) and, as of December 31, 2012, include interest rate swaps ($33 million) and foreign currency swaps ($341 million). | ||||||||||||||||||||||||
In addition, we have long-term receivables where the determination of fair value employs discounted future cash flows, using current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The differences between the estimated fair values and carrying values of these receivables were not significant as of September 29, 2013 or December 31, 2012. | |||||||||||||||||||||||||
There were no significant impairments of financial assets recognized in any period presented. | |||||||||||||||||||||||||
B. Investments in Debt Securities | |||||||||||||||||||||||||
The following table provides the contractual maturities of the available-for-sale and held-to-maturity debt securities: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
Over 1 | Over 5 | September 29, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Within 1 | to 5 | to 10 | Over 10 | Total | ||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | $ | 20,409 | $ | 2,225 | $ | — | $ | — | $ | 22,634 | |||||||||||||||
Corporate debt(b) | 2,152 | 4,479 | 1,097 | 348 | 8,076 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt(a) | 2,955 | 440 | — | — | 3,395 | ||||||||||||||||||||
Reverse repurchase agreements(c) | 2,270 | — | — | — | 2,270 | ||||||||||||||||||||
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities | 663 | 873 | 11 | 524 | 2,071 | ||||||||||||||||||||
Supranational debt(a) | 1,086 | 919 | — | — | 2,005 | ||||||||||||||||||||
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities | — | 1,668 | — | 16 | 1,684 | ||||||||||||||||||||
U.S. government debt | 77 | 273 | 49 | — | 399 | ||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||
Certificates of deposit and other | 1,398 | 67 | — | — | 1,465 | ||||||||||||||||||||
Total debt securities | $ | 31,010 | $ | 10,944 | $ | 1,157 | $ | 888 | $ | 43,999 | |||||||||||||||
(a) | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | ||||||||||||||||||||||||
(b) | Largely issued by above-investment-grade institutions in the financial services sector. | ||||||||||||||||||||||||
(c) | Involving U.S. and U.K. government securities. | ||||||||||||||||||||||||
C. Short-Term Borrowings | |||||||||||||||||||||||||
Short-term borrowings include amounts for commercial paper of $1.3 billion and $2.7 billion as of September 29, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
D. Long-Term Debt | |||||||||||||||||||||||||
On June 3, 2013, we completed a public offering of $4.0 billion aggregate principal amount of senior unsecured notes. In addition, we repaid at maturity our 3.625% senior unsecured notes that were due June 2013, which had a balance of $2.4 billion at December 31, 2012. | |||||||||||||||||||||||||
The following table provides the components of the senior unsecured long-term debt issued in the second quarter of 2013: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
September 29, | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Maturity Date | 2013 | |||||||||||||||||||||||
1.50%(a) | Jun-18 | $ | 1,000 | ||||||||||||||||||||||
3.00%(b) | Jun-23 | 1,000 | |||||||||||||||||||||||
0.90%(a) | Jan-17 | 750 | |||||||||||||||||||||||
4.30%(b) | Jun-43 | 750 | |||||||||||||||||||||||
Three-month London Interbank Offering Rate (LIBOR) plus 0.30% | Jun-18 | 500 | |||||||||||||||||||||||
Total long-term debt issued in the second quarter of 2013 | $ | 4,000 | |||||||||||||||||||||||
(a) | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.10% plus, in each case, accrued and unpaid interest. | ||||||||||||||||||||||||
(b) | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.15% plus, in each case, accrued and unpaid interest. | ||||||||||||||||||||||||
The following table provides the maturity schedule of our Long-term debt outstanding as of September 29, 2013: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2014 | 2015 | 2016 | 2017 | After 2017 | Total | |||||||||||||||||||
Maturities | $ | 1,259 | $ | 3,026 | $ | 4,439 | $ | 2,653 | $ | 20,435 | $ | 31,812 | |||||||||||||
E. Derivative Financial Instruments and Hedging Activities | |||||||||||||||||||||||||
Foreign Exchange Risk | |||||||||||||||||||||||||
As of September 29, 2013, the aggregate notional amount of foreign exchange derivative financial instruments hedging or offsetting foreign currency exposures is $41.7 billion. The derivative financial instruments primarily hedge or offset exposures in the euro, Japanese yen, U.K. pound and Swiss franc. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $2.4 billion U.K. pound debt maturing in 2038. | |||||||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||||||
As of September 29, 2013, the aggregate notional amount of interest rate derivative financial instruments is $16.5 billion. The derivative financial instruments primarily hedge U.S. dollar and euro fixed-rate debt. | |||||||||||||||||||||||||
The following table provides information about the gains/(losses) recognized to hedge or offset operational foreign exchange or interest rate risk: | |||||||||||||||||||||||||
Amount of | Amount of | Amount of | |||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) | |||||||||||||||||||||||
Recognized in OID(a), (b), (c) | Recognized in OCI | Reclassified from | |||||||||||||||||||||||
(Effective Portion)(a), (d) | OCI into OID | ||||||||||||||||||||||||
(Effective Portion)(a), (d) | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 489 | $ | 455 | $ | 313 | $ | 221 | |||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | — | — | (2 | ) | (40 | ) | — | — | |||||||||||||||||
Foreign currency forward-exchange contracts | (4 | ) | — | (1 | ) | — | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | (81 | ) | (201 | ) | — | — | — | — | |||||||||||||||||
Foreign currency swaps | (15 | ) | 10 | — | — | — | — | ||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | (4 | ) | (20 | ) | — | — | |||||||||||||||||
All other net | — | — | 1 | — | — | — | |||||||||||||||||||
$ | (100 | ) | $ | (191 | ) | $ | 483 | $ | 395 | $ | 313 | $ | 221 | ||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 334 | $ | 237 | $ | 64 | $ | 89 | |||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | (3 | ) | (2 | ) | 137 | 32 | — | — | |||||||||||||||||
Foreign currency forward-exchange contracts | (4 | ) | — | (1 | ) | — | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | 47 | (138 | ) | — | — | — | — | ||||||||||||||||||
Foreign currency swaps | (14 | ) | (7 | ) | — | — | — | — | |||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | 93 | 3 | — | — | |||||||||||||||||||
All other net | — | 2 | 2 | 5 | — | 5 | |||||||||||||||||||
$ | 26 | $ | (145 | ) | $ | 565 | $ | 277 | $ | 64 | $ | 94 | |||||||||||||
(a) | OID =ther (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income. | ||||||||||||||||||||||||
(b) | Also includes gains and losses attributable to the hedged risk in fair value hedge relationships. | ||||||||||||||||||||||||
(c) | There was no significant ineffectiveness for any period presented. | ||||||||||||||||||||||||
(d) | Amounts presented represent the effective portion of the gain or loss. For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding gains on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive income/(loss)––Foreign currency translation adjustments. | ||||||||||||||||||||||||
For information about the fair value of our derivative financial instruments, and the impact on our condensed consolidated balance sheets, see Note 7A. Financial Instruments: Selected Financial Assets and Liabilities above. Certain of our derivative instruments are covered by associated credit-support agreements that have credit-risk-related contingent features designed to reduce our counterparties’ exposure to our risk of defaulting on amounts owed. As of September 29, 2013, the aggregate fair value of these derivative instruments that are in a net liability position is $250 million, for which we have posted collateral of $221 million in the normal course of business. These features include the requirement to pay additional collateral in the event of a downgrade in our debt ratings. If there had been a downgrade to below an A rating by S&P or the equivalent rating by Moody’s Investors Service, on September 29, 2013, we would have been required to post an additional $46 million of collateral to our counterparties. The collateral advanced receivables are reported in Cash and cash equivalents. | |||||||||||||||||||||||||
F. Credit Risk | |||||||||||||||||||||||||
On an ongoing basis, we review the creditworthiness of counterparties to our foreign exchange and interest rate agreements and do not expect to incur a significant loss from failure of any counterparties to perform under the agreements. There are no significant concentrations of credit risk related to our financial instruments with any individual counterparty. As of September 29, 2013, we had $2.5 billion due from a well-diversified, highly rated group (S&P ratings of mostly A+ or better) of bank counterparties around the world. For details about our investments, see Note 7B. Financial Instruments: Investments in Debt Securities. | |||||||||||||||||||||||||
In general, there is no requirement for collateral from customers. However, derivative financial instruments are executed under master netting agreements with financial institutions and these agreements contain provisions that provide for collateral payments, depending on levels of exposure, our credit rating and the credit rating of the counterparty. For information about our financial instruments (excluding the impact of collateral), see Note 7A. Financial Instruments: Selected Financial Assets and Liabilities and Note 7B. Financial Instruments: Investments in Debt Securities above. For information about the collateral posted on our derivative instruments, see Note 7E. Financial Instruments: Derivative Financial Instruments and Hedging Activities above. As of September 29, 2013, we received cash collateral of $526 million from various counterparties. The collateral primarily supports the approximate fair value of our derivative contracts. With respect to the collateral received, which is included in Cash and cash equivalents, the obligations are reported in Short-term borrowings, including current portion of long-term debt. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
The following table provides the components of Inventories: | |||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||
2013 | 2012 | ||||||||
Finished goods | $ | 2,471 | $ | 2,254 | |||||
Work-in-process | 3,601 | 3,374 | |||||||
Raw materials and supplies | 410 | 448 | |||||||
Inventories | $ | 6,482 | $ | 6,076 | |||||
Noncurrent inventories not included above(a) | $ | 573 | $ | 612 | |||||
(a) | Included in Taxes and other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
A. Goodwill | |||||||||||||||||||||||||
The following table provides the components of and changes in the carrying amount of Goodwill: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Primary | Specialty | Established | Consumer Healthcare | Total | ||||||||||||||||||||
Care | Care and | Products and | |||||||||||||||||||||||
Oncology | Emerging | ||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 6,152 | $ | 16,885 | $ | 18,603 | $ | 2,021 | $ | 43,661 | |||||||||||||||
Derecognition(a) | — | — | (292 | ) | — | (292 | ) | ||||||||||||||||||
Other(b) | (140 | ) | (390 | ) | (429 | ) | (10 | ) | (969 | ) | |||||||||||||||
Balance, September 29, 2013 | $ | 6,012 | $ | 16,495 | $ | 17,882 | $ | 2,011 | $ | 42,400 | |||||||||||||||
(a) | Reflects the goodwill derecognized as part of the transfer of certain product rights, which constituted a business, to our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||
(b) | Primarily reflects the impact of foreign exchange. | ||||||||||||||||||||||||
B. Other Intangible Assets | |||||||||||||||||||||||||
Balance Sheet Information | |||||||||||||||||||||||||
The following table provides the components of Identifiable intangible assets: | |||||||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Gross | Accumulated | Identifiable | Gross | Accumulated | Identifiable | |||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Amount | Assets, less | Amount | Assets, less | ||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||
Developed technology rights | $ | 72,025 | $ | (40,432 | ) | $ | 31,593 | $ | 72,349 | $ | (36,895 | ) | $ | 35,454 | |||||||||||
Brands | 1,657 | (752 | ) | 905 | 1,657 | (693 | ) | 964 | |||||||||||||||||
License agreements and other | 897 | (722 | ) | 175 | 914 | (642 | ) | 272 | |||||||||||||||||
74,579 | (41,906 | ) | 32,673 | 74,920 | (38,230 | ) | 36,690 | ||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Brands | 7,373 | — | 7,373 | 7,786 | — | 7,786 | |||||||||||||||||||
In-process research and development | 500 | — | 500 | 669 | — | 669 | |||||||||||||||||||
Trademarks/tradenames | 3 | — | 3 | 1 | — | 1 | |||||||||||||||||||
7,876 | — | 7,876 | 8,456 | — | 8,456 | ||||||||||||||||||||
Identifiable intangible assets(a) | $ | 82,455 | $ | (41,906 | ) | $ | 40,549 | $ | 83,376 | $ | (38,230 | ) | $ | 45,146 | |||||||||||
(a) | The decrease is primarily related to amortization, asset impairment charges and the transfer of certain product rights to our equity-method investment in China. For additional information about the asset impairment charges, see Note 4. Other (Income)/Deductions—Net. For additional information about the transfer of certain product rights, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||
As of September 29, 2013, our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: | |||||||||||||||||||||||||
• | Developed Technology Rights: Specialty Care (68%); Established Products (19%); Primary Care (12%); and Oncology (1%); | ||||||||||||||||||||||||
• | Brands, finite-lived: Consumer Healthcare (73%); and Established Products (27%); | ||||||||||||||||||||||||
• | Brands, indefinite-lived: Consumer Healthcare (69%); and Established Products (31%); and | ||||||||||||||||||||||||
• | IPR&D: Worldwide Research and Development (43%); Specialty Care (38%); Established Products (10%); and Primary Care (9%). | ||||||||||||||||||||||||
There are no percentages for our Emerging Markets business unit as it is a geographic-area unit, not a product-based unit. The carrying value of the assets associated with our Emerging Markets business unit is included within the assets associated with the other four biopharmaceutical business units. | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate. Total amortization expense for finite-lived intangible assets was $1.1 billion for the third quarter of 2013 and $1.2 billion for the third quarter of 2012, and $3.6 billion for the first nine months of 2013 and $4.0 billion for the first nine months of 2012. | |||||||||||||||||||||||||
Impairment Charges | |||||||||||||||||||||||||
For information about impairments of intangible assets, see Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For IPR&D assets, the risk of failure is significant and there can be no certainty that these assets ultimately will yield a successful product. The nature of the biopharmaceutical business is high-risk and, as such, we expect that many of these IPR&D assets will become impaired and be written off at some time in the future. |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefit Plans | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
U.S. | U.S. | International(c) | Postretirement | ||||||||||||||||||||||||||||||
Qualified(a) | Supplemental | Plans | |||||||||||||||||||||||||||||||
(Non-Qualified)(b) | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 75 | $ | 86 | $ | 7 | $ | 8 | $ | 50 | $ | 50 | $ | 15 | $ | 16 | |||||||||||||||||
Interest cost | 166 | 170 | 26 | 15 | 92 | 97 | 42 | 46 | |||||||||||||||||||||||||
Expected return on plan assets | (248 | ) | (247 | ) | — | — | (99 | ) | (103 | ) | (14 | ) | (12 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 88 | 75 | 11 | 10 | 27 | 29 | 11 | 8 | |||||||||||||||||||||||||
Prior service credits | (2 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) | (3 | ) | (11 | ) | (13 | ) | |||||||||||||||||
Curtailments | — | — | — | — | (6 | ) | — | — | (3 | ) | |||||||||||||||||||||||
Settlements | 29 | 31 | 7 | 3 | 9 | 2 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | 1 | — | 8 | 1 | — | — | 1 | |||||||||||||||||||||||||
$ | 108 | $ | 114 | $ | 50 | $ | 42 | $ | 72 | $ | 72 | $ | 43 | $ | 43 | ||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 227 | $ | 272 | $ | 20 | $ | 27 | $ | 155 | $ | 151 | $ | 46 | $ | 51 | |||||||||||||||||
Interest cost | 501 | 528 | 53 | 47 | 279 | 297 | 125 | 137 | |||||||||||||||||||||||||
Expected return on plan assets | (752 | ) | (738 | ) | — | — | (301 | ) | (314 | ) | (41 | ) | (35 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 267 | 232 | 38 | 31 | 99 | 63 | 34 | 25 | |||||||||||||||||||||||||
Prior service credits | (5 | ) | (8 | ) | (2 | ) | (3 | ) | (5 | ) | (6 | ) | (33 | ) | (37 | ) | |||||||||||||||||
Curtailments | (1 | ) | (56 | ) | — | (8 | ) | (6 | ) | (9 | ) | (9 | ) | (26 | ) | ||||||||||||||||||
Settlements | 92 | 113 | 35 | 21 | 14 | 4 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | 8 | — | 23 | 3 | 3 | — | 5 | |||||||||||||||||||||||||
$ | 329 | $ | 351 | $ | 144 | $ | 138 | $ | 238 | $ | 189 | $ | 122 | $ | 120 | ||||||||||||||||||
(a) | The decrease in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. qualified plans was primarily driven by lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, lower settlement activity and greater expected return on plan assets resulting from a higher plan asset base, partially offset by the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. | ||||||||||||||||||||||||||||||||
(b) | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. supplemental (non-qualified) pension plans was primarily driven by higher settlement activity, an increase in the amounts amortized for actuarial losses resulting from the decrease in the discount rate and the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico, partially offset by special termination benefits in 2012. | ||||||||||||||||||||||||||||||||
(c) | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our international pension plans was primarily driven by an increase in the amounts amortized for actuarial losses resulting from decreases in discount rates and higher settlement activity. | ||||||||||||||||||||||||||||||||
For the nine months ended September 29, 2013, we contributed from our general assets: $5 million to our U.S. qualified pension plans, $146 million to our U.S. supplemental (non-qualified) pension plans, $246 million to our international pension plans and $178 million to our postretirement plans. | |||||||||||||||||||||||||||||||||
During 2013, we expect to contribute from our general assets a total of $5 million to our U.S. qualified pension plans, | |||||||||||||||||||||||||||||||||
$177 million to our U.S. supplemental (non-qualified) pension plans, $346 million to our international pension plans and $238 million to our postretirement plans. Contributions expected to be made for 2013 are inclusive of amounts contributed during the nine months ended September 29, 2013. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings_Per_Common_Share_Attr
Earnings Per Common Share Attributable to Common Shareholders | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Common Share Attributable to Common Shareholders | ' | ||||||||||||||||
Earnings Per Common Share Attributable to Common Shareholders | |||||||||||||||||
The following table provides the detailed calculation of Earnings per common share (EPS): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(IN MILLIONS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
EPS Numerator––Basic | |||||||||||||||||
Income from continuing operations | $ | 2,588 | $ | 2,989 | $ | 8,779 | $ | 7,543 | |||||||||
Less: Net income attributable to noncontrolling interests | 6 | 6 | 25 | 22 | |||||||||||||
Income from continuing operations attributable to Pfizer Inc. | 2,582 | 2,983 | 8,754 | 7,521 | |||||||||||||
Less: Preferred stock dividends––net of tax | — | 1 | 1 | 1 | |||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,582 | 2,982 | 8,753 | 7,520 | |||||||||||||
Discontinued operations––net of tax | 11 | 225 | 10,719 | 734 | |||||||||||||
Less: Discontinued operations––net of tax, attributable to noncontrolling interests | — | — | 39 | — | |||||||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 11 | 225 | 10,680 | 734 | |||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 2,593 | $ | 3,207 | $ | 19,433 | $ | 8,254 | |||||||||
EPS Numerator––Diluted | |||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,582 | $ | 2,983 | $ | 8,754 | $ | 7,521 | |||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 11 | 225 | 10,680 | 734 | |||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,593 | $ | 3,208 | $ | 19,434 | $ | 8,255 | |||||||||
EPS Denominator | |||||||||||||||||
Weighted-average number of common shares outstanding––Basic | 6,581 | 7,436 | 6,938 | 7,483 | |||||||||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 75 | 72 | 78 | 67 | |||||||||||||
Weighted-average number of common shares outstanding––Diluted | 6,656 | 7,508 | 7,016 | 7,550 | |||||||||||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | 180 | 43 | 180 | |||||||||||||
(a) | These common stock equivalents were outstanding for the three and nine months ended September 29, 2013 and September 30, 2012, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 29, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
Commitments and Contingencies | ||
We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business. For a discussion of our tax contingencies, see Notes to Condensed Consolidated Financial Statements––Note 5B. Tax Matters: Tax Contingencies. | ||
A. Legal Proceedings | ||
Our non-tax contingencies include, among others, the following: | ||
• | Patent litigation, which typically involves challenges to the coverage and/or validity of our patents on various products, processes or dosage forms. We are the plaintiff in the vast majority of these actions. An adverse outcome in actions in which we are the plaintiff could result in a loss of patent protection for the drug at issue, a significant loss of revenues from that drug and impairments of any associated assets. | |
• | Product liability and other product-related litigation, which can include personal injury, consumer, off-label promotion, securities-law, antitrust and breach of contract claims, among others, often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters. | |
• | Commercial and other matters, which can include merger-related and product-pricing claims and environmental claims and proceedings, can involve complexities that will vary from matter to matter. | |
• | Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other countries. | |
Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, and/or criminal charges, which could be substantial. | ||
We believe that our claims and defenses in these matters are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and/or our cash flows in the period in which the amounts are paid. | ||
We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies heavily on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. | ||
Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. | ||
The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors in order to assess materiality, such as, among other things, the amount of damages and the nature of any other relief sought in the proceeding, if such damages and other relief are specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be a class action and our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information about the Company that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters, we consider, among other things, the financial significance of the product protected by the patent. As a result of considering qualitative factors in our determination of principal matters, there are some matters discussed below with respect to which management believes that the likelihood of possible loss in excess of amounts accrued is remote. | ||
A1. Legal Proceedings––Patent Litigation | ||
Like other pharmaceutical companies, we are involved in numerous suits relating to our patents, including but not limited to those discussed below. Most of the suits involve claims by generic drug manufacturers that patents covering our products, processes or dosage forms are invalid and/or do not cover the product of the generic manufacturer. Also, counterclaims, as well as various independent actions, have been filed claiming that our assertions of, or attempts to enforce, our patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. patents on a number of our products that are discussed below, we note that the patent rights to certain of our products are being challenged in various other countries. | ||
Viagra (sildenafil) | ||
In March 2010, we brought a patent-infringement action in the U.S. District Court for the Eastern District of Virginia against Teva Pharmaceuticals USA, Inc. (Teva USA) and Teva Pharmaceutical Industries Ltd. (Teva Pharmaceutical Industries), which had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Viagra. Teva Pharmaceutical Industries subsequently was dismissed from this action. Teva USA asserts the invalidity and non-infringement of the Viagra use patent, which (including the six-month pediatric exclusivity period resulting from the Company’s conduct of clinical studies to evaluate Revatio in the treatment of pediatric patients with pulmonary arterial hypertension; Viagra and Revatio have the same active ingredient, sildenafil) expires in 2020. In August 2011, the court ruled that our Viagra use patent is valid and infringed, thereby preventing Teva USA from receiving FDA approval for a generic version of Viagra and from marketing its generic product in the U.S. before 2020. In September 2011, Teva USA appealed the decision to the U.S. Court of Appeals for the Federal Circuit. We and Teva USA have entered into an agreement to settle this litigation that will become effective upon the satisfaction of certain conditions, including court approval. | ||
In October 2010, we filed a patent-infringement action with respect to Viagra in the U.S. District Court for the Southern District of New York against Apotex Inc. and Apotex Corp., Mylan Pharmaceuticals Inc. and Mylan Inc., Actavis, Inc. and Amneal Pharmaceuticals LLC. These generic manufacturers have filed abbreviated new drug applications with the FDA seeking approval to market their generic versions of Viagra. They assert the invalidity and non-infringement of the Viagra use patent. | ||
In May and June 2011, respectively, Watson Laboratories Inc. (Watson) and Hetero Labs Limited (Hetero) notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market their generic versions of Viagra. Each asserts the invalidity and non-infringement of the Viagra use patent. In June and July 2011, respectively, we filed actions against Watson and Hetero in the U.S. District Court for the Southern District of New York asserting the validity and infringement of the use patent. | ||
Sutent (sunitinib malate) | ||
In May 2010, Mylan Pharmaceuticals Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Sutent and challenging on various grounds the Sutent basic patent, which expires in 2021, and two other patents, which expire in 2020 and 2021. In June 2010, we filed suit against Mylan Pharmaceuticals Inc. in the U.S. District Court for the District of Delaware asserting the infringement of those three patents. | ||
Lyrica (pregabalin) | ||
Beginning in March 2009, several generic manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Lyrica capsules and, in the case of one generic manufacturer, Lyrica oral solution. Each of the generic manufacturers is challenging one or more of three patents for Lyrica: the basic patent, which expires in 2018, and two other patents, one of which expired in October 2013 and the other of which expires in 2018. Each of the generic manufacturers asserts the invalidity and/or the non-infringement of the patents subject to challenge. Beginning in April 2009, we filed actions against these generic manufacturers in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patents for Lyrica. All of these cases were consolidated in the District of Delaware. In July 2012, the court held that all three patents are valid and infringed, thereby preventing the generic manufacturers from obtaining final FDA approval for their generic versions of Lyrica and from marketing those products in the U.S. prior to the expiration of the three patents. In August 2012, the generic manufacturers appealed the decision to the U.S. Court of Appeals for the Federal Circuit. | ||
Apotex Inc. notified us, in May and June 2011, respectively, that it had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Lyrica oral solution and Lyrica capsules. Apotex Inc. asserts the invalidity and non-infringement of the basic patent, as well as the seizure patent that expired in October 2013. In July 2011, we filed an action against Apotex Inc. in the U.S. District Court for the District of Delaware asserting the validity and infringement of the challenged patents in connection with both of the abbreviated new drug applications. | ||
In November 2010, Novel Laboratories, Inc. (Novel) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica oral solution and asserting the invalidity and/or non-infringement of our three patents for Lyrica referred to above in the first paragraph of this section. In January 2011, we filed an action against Novel in the U.S. District Court for the District of Delaware asserting the validity and infringement of all three patents. | ||
In October 2011, Alembic Pharmaceuticals Limited (Alembic) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica capsules and asserting the invalidity of the basic patent. In addition, in December 2012, Wockhardt Limited (Wockhardt) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica oral solution and asserting the invalidity and non-infringement of the basic patent. In December 2011 and January 2013, we filed actions against Alembic and Wockhardt, respectively, in the U.S. District Court for the District of Delaware asserting the validity and infringement of the basic patent. | ||
Each of Novel, Alembic and Wockhardt has agreed to a stay of the respective actions described above and to be bound by the decision of the U.S. Court of Appeals for the Federal District in the appeal of the judgment of the District of Delaware in the consolidated action discussed above in the first paragraph of this section. | ||
EpiPen | ||
King Pharmaceuticals, Inc. (King) brought a patent-infringement action against Sandoz, Inc., a division of Novartis AG (Sandoz), in the U.S. District Court for the District of New Jersey in July 2010 as the result of its abbreviated new drug application with the FDA seeking approval to market an epinephrine injectable product. Sandoz is challenging patents, which expire in 2025, covering the next-generation autoinjector for use with epinephrine that is sold under the EpiPen brand name. | ||
Embeda (morphine sulfate/naltrexone hydrochloride extended-release capsules) | ||
In August 2011, Watson Laboratories Inc. - Florida (Watson Florida) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Embeda extended-release capsules. Watson Florida asserts the invalidity and non-infringement of three formulation patents that expire in 2027. In October 2011, we filed an action against Watson Florida in the U.S. District Court for the District of Delaware asserting the infringement of, and defending against the allegations of the invalidity of, the three formulation patents. | ||
Torisel (temsirolimus) | ||
In December 2011, we brought patent-infringement actions in the U.S. District Court for the District of Delaware against Sandoz and Accord Healthcare, Inc. USA and certain of its affiliates (collectively, Accord) as a result of their abbreviated new drug applications with the FDA seeking approval to market generic versions of Torisel before the expiration of the basic patent in 2014. In May 2012, we brought an action in the same court against Sandoz for infringement of a formulation patent that expires in 2026. In September 2012, our actions against Sandoz and Accord were consolidated in the District of Delaware. In October 2013, we and Accord entered into an agreement-in-principle to settle our action against Accord on terms that are not material to Pfizer. | ||
Pristiq (desvenlafaxine) | ||
Beginning in May 2012, several generic manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Pristiq. Each of the generic manufacturers asserts the invalidity, unenforceability and/or non-infringement of two patents for Pristiq that expire in 2022 and in 2027. Beginning in June 2012, we filed actions against these generic manufacturers in the U.S. District Court for the District of Delaware asserting the validity, enforceability and infringement of those patents. All of these actions have been consolidated in the District of Delaware. | ||
Zyvox (linezolid) | ||
In February 2013, Apotex Inc. and Apotex Corp. notified us that they had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Zyvox. They assert invalidity of the basic Zyvox patent, which (including the six-month pediatric exclusivity period) expires in 2015. In March 2013, we filed an action against Apotex Inc. and Apotex Corp. in the U.S. District Court for the Northern District of Illinois for infringement of the basic patent. | ||
Detrol LA (tolterodine) | ||
In February 2013, Lupin Ltd. and Lupin Pharmaceuticals, Inc. notified us that they had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Detrol LA. They asserted the invalidity and non-infringement of three Detrol LA formulation patents, which (including the six-month pediatric exclusivity period) expire in 2020. In March 2013, we filed an action against Lupin Ltd. and Lupin Pharmaceuticals, Inc. in the U.S. District Court for the District of New Jersey for infringement of two of the formulation patents. | ||
In March 2013, Inventia Healthcare Private Limited (Inventia) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Detrol LA. Inventia asserted the invalidity and non-infringement of the three Detrol LA formulation patents referred to above. In April 2013, we filed an action against Inventia in the U.S. District Court for the Northern District of Illinois for infringement of two of the formulation patents. | ||
In October 2013, both of the actions described above were settled on terms that are not material to Pfizer. | ||
Celebrex (celecoxib) | ||
In March 2013, the U.S. Patent and Trademark Office granted us a reissue patent covering methods of treating osteoarthritis and other approved conditions with celecoxib, the active ingredient in Celebrex. The reissue patent, including the six-month pediatric exclusivity period, expires in December 2015. On the date that the reissue patent was granted, we filed suit in the U.S. District Court for the Eastern District of Virginia, asserting the infringement of the reissue patent, against Teva USA, Mylan Pharmaceuticals Inc., Watson, Lupin Pharmaceuticals USA, Inc., Apotex Corp. and Apotex Inc. Each of those generic companies had previously filed an abbreviated new drug application with the FDA seeking approval to market a generic version of celecoxib beginning in May 2014, upon the expiration of the basic patent (including the six-month pediatric exclusivity period) for celecoxib. | ||
Toviaz (fesoterodine) | ||
We have an exclusive, worldwide license to market Toviaz from UCB Pharma GmbH, which owns the patents relating to Toviaz. | ||
Beginning in May 2013, several generic manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Toviaz and asserting the invalidity, unenforceability and/or non-infringement of all of our patents for Toviaz that are listed in the Orange Book. Beginning in June 2013, we filed actions against all of those generic manufacturers in the U.S. District Court for the District of Delaware asserting the infringement of five of our patents for Toviaz: three composition-of-matter patents and a method-of-use patent that expire in 2019, and a patent covering salts of fesoterodine that expires in 2022. | ||
Tygacil (tigecycline) | ||
In September 2013, Apotex Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Tygacil. Apotex Inc. asserts the non-infringement of a polymorph patent for Tygacil that expires in 2030, but has not challenged the basic patent, which expires in 2016. In September 2013, we filed suit against Apotex Inc. in the U.S. District Court for the District of Delaware asserting the infringement of the polymorph patent. | ||
A2. Legal Proceedings––Product Litigation | ||
Like other pharmaceutical companies, we are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. | ||
Asbestos | ||
• | Quigley | |
Quigley Company, Inc. (Quigley or, subsequent to the effectiveness of the amended reorganization plan on November 4, 2013, Reorganized Quigley), a wholly owned subsidiary, was acquired by Pfizer in 1968 and sold products containing small amounts of asbestos until the early 1970s. In September 2004, Pfizer and Quigley took steps that were intended to resolve all pending and future claims against Pfizer and Quigley in which the claimants allege personal injury from exposure to Quigley products containing asbestos, silica or mixed dust. We recorded a charge of $369 million pre-tax ($229 million after-tax) in the third quarter of 2004 in connection with these matters. | ||
In September 2004, Quigley filed a petition in the U.S. Bankruptcy Court for the Southern District of New York seeking reorganization under Chapter 11 of the U.S. Bankruptcy Code. In March 2005, Quigley filed a reorganization plan in the Bankruptcy Court that needed the approval of 75% of the voting claimants, as well as the Bankruptcy Court and the U.S. District Court for the Southern District of New York. In connection with that filing, Pfizer entered into settlement agreements with lawyers representing more than 80% of the individuals with claims related to Quigley products against Quigley and Pfizer. The agreements provide for a total of $430 million in payments, of which $215 million became due in December 2005 and has been and is being paid to claimants upon receipt by Pfizer of certain required documentation from each of the claimants. The reorganization plan provided for the establishment of a trust (the Asbestos Personal Injury Trust) for the evaluation and, as appropriate, payment of all unsettled pending claims, as well as any future claims alleging injury from exposure to Quigley products. | ||
In February 2008, the Bankruptcy Court authorized Quigley to solicit an amended reorganization plan for acceptance by claimants. According to the official report filed with the court by the balloting agent in July 2008, the requisite votes were cast in favor of the amended plan of reorganization. | ||
The Bankruptcy Court held a confirmation hearing with respect to Quigley’s amended plan of reorganization that concluded in December 2009. In September 2010, the Bankruptcy Court declined to confirm the amended reorganization plan. As a result of the foregoing, Pfizer recorded additional charges for this matter of approximately $1.3 billion pre-tax (approximately $800 million after-tax) in 2010. Further, in order to preserve its right to address certain legal issues raised in the court’s opinion, in October 2010, Pfizer filed a notice of appeal and motion for leave to appeal the Bankruptcy Court’s decision denying confirmation. | ||
In March 2011, Pfizer entered into a settlement agreement with a committee (the Ad Hoc Committee) representing approximately 40,000 claimants in the Quigley bankruptcy proceeding (the Ad Hoc Committee claimants). Consistent with the charges previously recorded with respect to Quigley, the principal provisions of the settlement agreement provided for a settlement payment in two installments and other consideration, as follows: | ||
• | the payment to the Ad Hoc Committee, for the benefit of the Ad Hoc Committee claimants, of a first installment of $500 million upon receipt by Pfizer of releases of asbestos-related claims against Pfizer Inc. from Ad Hoc Committee claimants holding $500 million in the aggregate of claims (Pfizer began paying this first installment in June 2011 and all amounts have been paid); | |
• | the payment to the Ad Hoc Committee, for the benefit of the Ad Hoc Committee claimants, of a second installment of $300 million upon Pfizer’s receipt of releases of asbestos-related claims against Pfizer Inc. from Ad Hoc Committee claimants holding an additional $300 million in the aggregate of claims (Pfizer began paying this second installment in April 2013 and all amounts have been paid); | |
• | the payment of the Ad Hoc Committee’s legal fees and expenses incurred in this matter up to a maximum of $19 million (Pfizer began paying these legal fees and expenses in May 2011 and all amounts have been paid); and | |
• | the procurement by Pfizer of insurance for the benefit of certain Ad Hoc Committee claimants to the extent such claimants with non-malignant diseases have a future disease progression to a malignant disease (Pfizer procured this insurance in August 2011). | |
Following the execution of the settlement agreement with the Ad Hoc Committee, Quigley filed a revised plan of reorganization and accompanying disclosure statement with the Bankruptcy Court in April 2011, which it amended in June 2012. In August 2012, the Bankruptcy Court authorized Quigley to solicit the amended plan of reorganization for acceptance by claimants. The balloting agent's tabulation report filed with the court reflects that the requisite number of asbestos-related claimants cast votes in favor of the revised plan. | ||
In June 2013, the Bankruptcy Court held a hearing to consider confirmation of the amended reorganization plan and, in July 2013, it entered an order confirming the plan. Subsequently, in July 2013, the District Court entered an order issuing an injunction directing pending and future claims alleging asbestos-related personal injury from exposure to Quigley products to the Asbestos Personal Injury Trust, subject to any appeal and to the decision of the Second Circuit discussed below. The District Court's judgment on its order became final and non-appealable on October 17, 2013. The amended reorganization plan became effective on November 4, 2013, at which time, consistent with the charges previously recorded with respect to Quigley, we contributed an additional amount of cash and non-cash items (including insurance proceeds and the value of certain debt forgiveness) to Reorganized Quigley and the Asbestos Personal Injury Trust with a value of approximately $1.08 billion; the value of the non-cash items was finalized and approved by the Bankruptcy Court. | ||
In April 2012, the U.S. Court of Appeals for the Second Circuit affirmed a ruling by the U.S. District Court for the Southern District of New York that the Bankruptcy Court’s preliminary injunction in the Quigley bankruptcy proceeding does not prohibit actions directly against Pfizer Inc. for alleged asbestos-related personal injury from exposure to Quigley products based on the “apparent manufacturer” theory of liability under Pennsylvania law. The Second Circuit’s decision is procedural and does not address the merits of the plaintiffs’ claims under Pennsylvania law. In June 2013, the U.S. Supreme Court denied our petition for certiorari seeking a reversal of the Second Circuit’s decision. As a result, actions against Pfizer Inc. for alleged asbestos-related personal injury from exposure to Quigley products alleging an “apparent manufacturer” theory of liability are no longer stayed and additional actions might be filed to the extent allowed by the Second Circuit's decision and applicable law. | ||
In a separately negotiated transaction with an insurance company in August 2004, we agreed to a settlement related to certain insurance coverage which provides for payments to an insurance proceeds trust established by Pfizer and Quigley over a ten-year period of amounts totaling $405 million. All amounts paid by this insurance company to date were paid into the insurance proceeds trust and subsequently deposited in the Asbestos Personal Injury Trust as of the November 4, 2013 effective date of the Quigley amended reorganization plan. In addition, certain other insurance companies that issued policies covering Pfizer and Quigley entered into settlement agreements during the Quigley bankruptcy proceeding pursuant to which they have made, or will make in accordance with the schedules provided for in the respective settlement agreements, settlement payments to the Asbestos Personal Injury Trust for the benefit of present unsettled and future claimants with claims arising from exposure to Quigley products. | ||
• | Other Matters | |
Between 1967 and 1982, Warner-Lambert owned American Optical Corporation, which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. As of September 29, 2013, approximately 66,400 claims naming American Optical and numerous other defendants were pending in various federal and state courts seeking damages for alleged personal injury from exposure to asbestos and other allegedly hazardous materials. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means to resolve, these claims. | ||
Warner-Lambert and American Optical brought suit in state court in New Jersey against the insurance carriers that provided coverage for the asbestos and other allegedly hazardous materials claims related to American Optical. A majority of the carriers subsequently agreed to pay for a portion of the costs of defending and resolving those claims. The litigation continues against the carriers who have disputed coverage or how costs should be allocated to their policies, and the court held that Warner-Lambert and American Optical are entitled to payment from each of those carriers of a proportionate share of the costs associated with those claims. Under New Jersey law, a special allocation master was appointed to implement certain aspects of the court’s rulings. By late-May 2013, Warner-Lambert and American Optical had agreed to principal settlement terms with all of those remaining carriers regarding their payment of a portion of the past costs and their coverages for a portion of the future costs of defending and resolving the aforementioned claims against American Optical. Final settlement agreements have been negotiated, and it is expected that final payment will be made and that Warner-Lambert's and American Optical's action against the insurance carriers will be dismissed in the fourth quarter of 2013. | ||
Numerous lawsuits are pending against Pfizer in various federal and state courts seeking damages for alleged personal injury from exposure to products containing asbestos and other allegedly hazardous materials sold by Gibsonburg Lime Products Company (Gibsonburg). Gibsonburg was acquired by Pfizer in the 1960s and sold products containing small amounts of asbestos until the early 1970s. | ||
There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries. | ||
Celebrex and Bextra | ||
Beginning in late 2004, several purported class actions were filed in federal and state courts alleging that Pfizer and certain current and former officers of Pfizer violated federal securities laws by misrepresenting the safety of Celebrex and Bextra. In June 2005, the federal actions were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Pfizer Inc. Securities, Derivative and "ERISA" Litigation MDL-1688) in the U.S. District Court for the Southern District of New York. In March 2012, the court in the Multi-District Litigation certified a class consisting of all persons who purchased or acquired Pfizer stock between October 31, 2000 and October 19, 2005. In November 2012, several institutional investors that had opted out of the certified class filed three, separate, multi-plaintiff actions in the Southern District of New York against the same defendants named in the consolidated class action, asserting allegations substantially similar to those asserted in the consolidated class action. In September 2013, the Southern District dismissed the three, multi-plaintiff actions without prejudice, and the plaintiffs in those actions rejoined the certified class in the Multi-District Litigation. | ||
Various Drugs: Off-Label Promotion Actions | ||
In May 2010, a purported class action was filed in the U.S. District Court for the Southern District of New York against Pfizer and several of our current and former officers. The complaint alleges that the defendants violated federal securities laws by making or causing Pfizer to make false statements, and by failing to disclose or causing Pfizer to fail to disclose material information, concerning the alleged off-label promotion of certain pharmaceutical products, alleged payments to physicians to promote the sale of those products and government investigations related thereto. Plaintiffs seek damages in an unspecified amount. In March 2012, the court certified a class consisting of all persons who purchased Pfizer common stock in the U.S. or on U.S. stock exchanges between January 19, 2006 and January 23, 2009 and were damaged as a result of the decline in the price of Pfizer common stock allegedly attributable to the claimed violations. | ||
Various Drugs: Foreign Corrupt Practices Act Compliance | ||
In February 2013, a shareholder derivative action was filed in the Supreme Court of the State of New York, County of New York, against certain current and former officers and directors of Pfizer. Pfizer is named as a nominal defendant. The complaint alleges that the individual defendants breached their fiduciary duties to the Company as the result of, among other things, inadequate oversight of compliance by Pfizer subsidiaries in various countries outside the U.S. with the U.S. Foreign Corrupt Practices Act. The plaintiff seeks damages in unspecified amounts and other unspecified relief on behalf of Pfizer. | ||
Hormone-Replacement Therapy | ||
• | Personal Injury and Economic Loss Actions | |
Pfizer and certain wholly owned subsidiaries and limited liability companies, including Wyeth and King, along with several other pharmaceutical manufacturers, have been named as defendants in approximately 10,000 actions in various federal and state courts alleging personal injury or economic loss related to the use or purchase of certain estrogen and progestin medications prescribed for women to treat the symptoms of menopause. Although new actions are occasionally filed, the number of new actions was not significant in the third quarter of 2013, and we do not expect a substantial change in the rate of new actions being filed. Plaintiffs in these suits allege a variety of personal injuries, including breast cancer, ovarian cancer, stroke and heart disease. Certain co-defendants in some of these actions have asserted indemnification rights against Pfizer and its affiliated companies. The cases against Pfizer and its affiliated companies involve one or more of the following products, all of which remain approved by the FDA: femhrt (which Pfizer divested in 2003); Activella and Vagifem (which are Novo Nordisk products that were marketed by a Pfizer affiliate from 2000 to 2004); Premarin, Prempro, Aygestin, Cycrin and Premphase (which are legacy Wyeth products); and Provera, Ogen, Depo-Estradiol, Estring and generic MPA (which are legacy Pharmacia & Upjohn products). The federal cases were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Prempro Products Liability Litigation MDL-1507) in the U.S. District Court for the Eastern District of Arkansas. Certain of the federal cases have been remanded to their respective District Courts for further proceedings including, if necessary, trial. | ||
This litigation consists of individual actions; a few purported statewide class actions; a purported nationwide class action in Canada; a purported province-wide class action in Quebec, Canada; a statewide class action in California; and a nationwide class action in Canada. In March 2011, in an action against Wyeth seeking the refund of the purchase price paid for Wyeth’s hormone-replacement therapy products by individuals in the State of California during the period from January 1995 to January 2003, the U.S. District Court for the Southern District of California certified a class consisting of all individual purchasers of such products in California who actually heard or read Wyeth’s alleged misrepresentations regarding such products. This is the only hormone-replacement therapy action to date against Pfizer and its affiliated companies in the U.S. in which a class has been certified. In addition, in August 2011, in an action against Wyeth seeking damages for personal injury and consumer fraud, the Supreme Court of British Columbia certified a class consisting of all women who were prescribed Premplus and/or Premarin in combination with progestin in Canada between January 1, 1997 and December 1, 2003 and who thereafter were diagnosed with breast cancer. | ||
Pfizer and its affiliated companies have prevailed in many of the hormone-replacement therapy actions that have been resolved to date, whether by voluntary dismissal by the plaintiffs, summary judgment, defense verdict or judgment notwithstanding the verdict; a number of these cases have been appealed by the plaintiffs. Certain other hormone-replacement therapy actions have resulted in verdicts for the plaintiffs and have included the award of compensatory and, in some instances, punitive damages; each of these cases has been appealed by Pfizer and/or its affiliated companies. The decisions in a few of the cases that had been appealed by Pfizer and/or its affiliated companies or by the plaintiffs have been upheld by the appellate courts, while several other cases that had been appealed by Pfizer and/or its affiliated companies or by the plaintiffs have been remanded by the appellate courts to their respective trial courts for further proceedings. Trials of additional hormone-replacement therapy actions are scheduled in 2014. | ||
Most of the unresolved actions against Pfizer and/or its affiliated companies have been outstanding for more than five years and could take many more years to resolve. However, opportunistic settlements could occur at any time. The litigation process is time-consuming, as every hormone-replacement action being litigated involves contested issues of medical causation and knowledge of risk. Even though the vast majority of hormone-replacement therapy actions concern breast cancer, the underlying facts (e.g., medical causation, family history, reliance on warnings, physician/patient interaction, analysis of labels, actual, provable injury and other critical factors) can differ significantly from action to action, and the process of discovery has not yet begun for a majority of the unresolved actions. In addition, the hormone-replacement therapy litigation involves fundamental issues of science and medicine that often are uncertain and continue to evolve. | ||
As of September 29, 2013, Pfizer and its affiliated companies had settled, or entered into definitive agreements or agreements-in-principle to settle, approximately 98% of the hormone-replacement therapy actions pending against us and our affiliated companies. Since the inception of this litigation, we recorded aggregate charges in previous years with respect to those actions, as well as with respect to the actions that have resulted in verdicts against us or our affiliated companies, of approximately $1.7 billion. These charges also include approximately $25 million for the expected costs to resolve all remaining hormone-replacement therapy actions against Pfizer and its affiliated companies, excluding the class actions and purported class actions referred to above. The approximately $25 million charges are an estimate and, while we cannot reasonably estimate the range of reasonably possible loss in excess of the amounts accrued for these contingencies given the uncertainties inherent in this product liability litigation, as described above, additional charges may be required in the future. | ||
• | Government Inquiries; Action by the State of Nevada | |
Pfizer and/or its affiliated companies also have received inquiries from various federal and state agencies and officials relating to the marketing of their hormone-replacement products. In November 2008, the State of Nevada filed an action against Pfizer, Pharmacia & Upjohn Company and Wyeth in state court in Nevada alleging that they had engaged in deceptive marketing of their respective hormone-replacement therapy medications in Nevada in violation of the Nevada Deceptive Trade Practices Act. The action seeks monetary relief, including civil penalties and treble damages. In February 2010, the action was dismissed by the court on statute of limitations grounds. In July 2011, the Nevada Supreme Court reversed the dismissal and remanded the case to the district court for further proceedings. | ||
Effexor | ||
• | Personal Injury Actions | |
A number of individual lawsuits and multi-plaintiff lawsuits have been filed against us and/or our subsidiaries in various federal and state courts alleging personal injury as a result of the purported ingestion of Effexor. Among other types of actions, the Effexor personal injury litigation includes actions alleging a variety of birth defects as a result of the purported ingestion of Effexor by women during pregnancy. Plaintiffs in these birth-defect actions seek compensatory and punitive damages. In August 2013, the federal birth-defect cases were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Effexor (Venlafaxine Hydrochloride) Products Liability Litigation MDL-2458) in the U.S. District Court for the Eastern District of Pennsylvania. | ||
• | Antitrust Actions | |
Beginning in May 2011, actions, including purported class actions, were filed in various federal courts against Wyeth and, in certain of the actions, affiliates of Wyeth and certain other defendants relating to Effexor XR, which is the extended-release formulation of Effexor. The plaintiffs in each of the class actions seek to represent a class consisting of all persons in the U.S. and its territories who directly purchased, indirectly purchased or reimbursed patients for the purchase of Effexor XR or generic Effexor XR from any of the defendants from June 14, 2008 until the time the defendants’ allegedly unlawful conduct ceased. The plaintiffs in all of the actions allege delay in the launch of generic Effexor XR in the U.S. and its territories, in violation of federal antitrust laws and, in certain of the actions, the antitrust, consumer protection and various other laws of certain states, as the result of Wyeth fraudulently obtaining and improperly listing certain patents for Effexor XR, enforcing certain patents for Effexor XR, and entering into a litigation settlement agreement with a generic manufacturer with respect to Effexor XR. Each of the plaintiffs seeks treble damages (for itself in the individual actions or on behalf of the putative class in the purported class actions) for alleged price overcharges for Effexor XR or generic Effexor XR in the U.S. and its territories since June 14, 2008. All of these actions have been consolidated in the U.S. District Court for the District of New Jersey. | ||
Zoloft | ||
A number of individual lawsuits and multi-plaintiff lawsuits have been filed against us and/or our subsidiaries in various federal and state courts alleging personal injury as a result of the purported ingestion of Zoloft. Among other types of actions, the Zoloft personal injury litigation includes actions alleging a variety of birth defects as a result of the purported ingestion of Zoloft by women during pregnancy. Plaintiffs in these birth-defect actions seek compensatory and punitive damages and the disgorgement of profits resulting from the sale of Zoloft. In April 2012, the federal birth-defect cases were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Zoloft Products Liability Litigation MDL-2342) in the U.S. District Court for the Eastern District of Pennsylvania. | ||
Neurontin | ||
• | Off-Label Promotion Actions | |
A number of lawsuits, including purported class actions, have been filed against us in various federal and state courts alleging claims arising from the promotion and sale of Neurontin. The plaintiffs in the purported class actions seek to represent nationwide and certain statewide classes consisting of persons, including individuals, health insurers, employee benefit plans and other third-party payers, who purchased or reimbursed patients for the purchase of Neurontin that allegedly was used for indications other than those included in the product labeling approved by the FDA. In 2004, many of the suits pending in federal courts, including individual actions as well as purported class actions, were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Neurontin Marketing, Sales Practices and Product Liability Litigation MDL-1629) in the U.S. District Court for the District of Massachusetts. | ||
In the Multi-District Litigation, the District Court (i) denied the plaintiffs’ motion for certification of a nationwide class of all individual consumers and third-party payers who allegedly purchased or reimbursed patients for the purchase of Neurontin for off-label uses from 1994 through 2004, and (ii) dismissed an individual action by a third-party payer, Aetna, as well as actions by certain proposed class representatives for third-party payers and for individual consumers. In April 2013, the U.S. Court of Appeals for the First Circuit reversed the decisions of the District Court dismissing the individual action by Aetna as well as the action by the third-party payer proposed class representatives. The First Circuit remanded those actions to the District Court for further consideration, including reconsideration of class certification in the third-party payer action. In addition, a number of individual actions by other third-party payers remain pending in the Multi-District Litigation and in other courts. | ||
In January 2011, the U.S. District Court for the District of Massachusetts entered an order trebling a jury verdict against us in an individual action by a third-party payer, the Kaiser Foundation Health Plan Inc., seeking damages for the alleged off-label promotion of Neurontin in violation of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The verdict was for approximately $47.4 million, which was subject to automatic trebling to $142.1 million under the RICO Act. In November 2010, the court had entered a separate verdict against us in the amount of $65.4 million, together with prejudgment interest, under California’s Unfair Trade Practices law relating to the same alleged conduct, which amount is included within and is not additional to the $142.1 million trebled amount of the jury verdict. In April 2013, the U.S. Court of Appeals for the First Circuit affirmed the District Court's decisions. | ||
In August 2013, we filed a petition for certiorari seeking review by the U.S. Supreme Court of the First Circuit's decisions, described above, reversing the dismissals of the individual action by Aetna and the third-party payer purported class action and affirming the verdict against us in the individual action by Kaiser. Our petition asks the Supreme Court to review certain issues regarding causation and damages. | ||
Plaintiffs are seeking certification of statewide classes of Neurontin purchasers in actions pending in California and Illinois that allege off-label promotion of Neurontin. State courts in New York, Pennsylvania, Missouri and New Mexico have declined to certify statewide classes of Neurontin purchasers. | ||
• | Personal Injury Actions | |
A number of individual lawsuits have been filed against us in various federal and state courts alleging suicide, attempted suicide and other personal injuries as a result of the purported ingestion of Neurontin. Certain of the federal actions have been transferred for consolidated pre-trial proceedings to the same Multi-District Litigation referred to in the first paragraph of the “Neurontin––Off-Label Promotion Actions” section above. | ||
• | Antitrust Action | |
In January 2011, in a Multi-District Litigation (In re Neurontin Antitrust Litigation MDL-1479) that consolidates four actions, the U.S. District Court for the District of New Jersey certified a nationwide class consisting of wholesalers and other entities who purchased Neurontin directly from Pfizer and Warner-Lambert during the period from December 11, 2002 to August 31, 2008 and who also purchased generic gabapentin after it became available. The complaints allege that Pfizer and Warner-Lambert engaged in anticompetitive conduct in violation of the Sherman Act that included, among other things, submitting patents for listing in the Orange Book and prosecuting and enforcing certain patents relating to Neurontin, as well as engaging in off-label marketing of Neurontin. Plaintiffs seek compensatory damages on behalf of the class, which may be subject to trebling. | ||
Lipitor | ||
• | Whistleblower Action | |
In 2004, a former employee filed a “whistleblower” action against us in the U.S. District Court for the Eastern District of New York. The complaint remained under seal until September 2007, at which time the U.S. Attorney for the Eastern District of New York declined to intervene in the case. We were served with the complaint in December 2007. Plaintiff alleges off-label promotion of Lipitor in violation of the Federal Civil False Claims Act and the false claims acts of certain states, and he seeks treble damages and civil penalties on behalf of the federal government and the specified states as the result of their purchase, or reimbursement of patients for the purchase, of Lipitor allegedly for such off-label uses. Plaintiff also seeks compensation as a whistleblower under those federal and state statutes. In addition, plaintiff alleges that he was wrongfully terminated, in violation of the anti-retaliation provisions of applicable federal and New York law, and he seeks damages and the reinstatement of his employment. In 2009, the District Court dismissed without prejudice the off-label promotion claims and, in 2010, plaintiff filed an amended complaint containing off-label promotion allegations that are substantially similar to the allegations in the original complaint. In November 2012, the District Court dismissed the amended complaint. In December 2012, the plaintiff appealed the District Court's decision to the U.S. Court of Appeals for the Second Circuit. | ||
• | Antitrust Actions | |
Beginning in November 2011, purported class actions relating to Lipitor were filed in various federal courts against Pfizer, certain affiliates of Pfizer, and, in most of the actions, Ranbaxy, among others. The plaintiffs in these various actions seek to represent nationwide, multi-state or statewide classes consisting of persons or entities who directly purchased, indirectly purchased or reimbursed patients for the purchase of Lipitor (or, in certain of the actions, generic Lipitor) from any of the defendants from March 2010 until the cessation of the defendants’ allegedly unlawful conduct (the Class Period). The plaintiffs allege delay in the launch of generic Lipitor, in violation of federal antitrust laws and/or state antitrust, consumer protection and various other laws, resulting from (i) the 2008 agreement pursuant to which Pfizer and Ranbaxy settled certain patent litigation involving Lipitor, and Pfizer granted Ranbaxy a license to sell a generic version of Lipitor in various markets beginning on varying dates, and (ii) in certain of the actions, the procurement and/or enforcement of certain patents for Lipitor. Each of the actions seeks, among other things, treble damages on behalf of the putative class for alleged price overcharges for Lipitor (or, in certain of the actions, generic Lipitor) during the Class Period. In addition, individual actions have been filed against Pfizer, Ranbaxy and certain of their affiliates, among others, that assert claims and seek relief for the plaintiffs that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. These various actions have been consolidated for pre-trial proceedings in a Multi-District Litigation (In re Lipitor Antitrust Litigation MDL-2332) in the U.S. District Court for the District of New Jersey. | ||
In November 2012, the defendants moved to dismiss all of the foregoing actions. In September 2013, the court dismissed the claims by direct purchasers that relate to the procurement and/or enforcement of certain patents for Lipitor. In addition, the court limited the timeframe for which direct purchasers may pursue their remaining damage claims to the period from June 2011 to November 2011. The court deferred its ruling on the defendants' motions to dismiss the claims by direct purchasers that relate to the 2008 litigation settlement agreement with Ranbaxy and granted the plaintiffs leave to amend their complaints as to those claims. Defendants' motions to dismiss the actions by the other plaintiffs in the Multi-District Litigation—the indirect purchaser, third-party payer and individual plaintiffs—remain pending. | ||
Also, in January 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that asserts claims and seeks relief on behalf of the State of West Virginia and residents of that state that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. | ||
Chantix/Champix | ||
Beginning in December 2008, purported class actions were filed against us in the Ontario Superior Court of Justice (Toronto Region), the Superior Court of Quebec (District of Montreal), the Court of Queen’s Bench of Alberta, Judicial District of Calgary, and the Superior Court of British Columbia (Vancouver Registry) on behalf of all individuals and third-party payers in Canada who have purchased and ingested Champix or reimbursed patients for the purchase of Champix. Each of these actions asserts claims under Canadian product liability law, including with respect to the safety and efficacy of Champix, and, on behalf of the putative class, seeks monetary relief, including punitive damages. In June 2012, the Ontario Superior Court of Justice certified the Ontario proceeding as a class action, defining the class as consisting of the following: (i) all persons in Canada who ingested Champix during the period from April 2, 2007 to May 31, 2010 and who experienced at least one of a number of specified neuropsychiatric adverse events; (ii) all persons who are entitled to assert claims in respect of Champix pursuant to Canadian legislation as the result of their relationship with a class member; and (iii) all health insurers who are entitled to assert claims in respect of Champix pursuant to Canadian legislation. The Ontario Superior Court of Justice certified the class against Pfizer Canada Inc. only and ruled that the action against Pfizer Inc. should be stayed until after the trial of the issues that are common to the class members. The actions in Quebec, Alberta and British Columbia have been stayed in favor of the Ontario action, which is proceeding on a national basis. | ||
Bapineuzumab | ||
In June 2010, a purported class action was filed in the U.S. District Court for the District of New Jersey against Pfizer, as successor to Wyeth, and several former officers of Wyeth. The complaint alleges that Wyeth and the individual defendants violated federal securities laws by making or causing Wyeth to make false and misleading statements, and by failing to disclose or causing Wyeth to fail to disclose material information, concerning the results of a clinical trial involving bapineuzumab, a product in development for the treatment of Alzheimer’s disease. The plaintiff seeks to represent a class consisting of all persons who purchased Wyeth securities from May 21, 2007 through July 2008 and seeks damages in an unspecified amount on behalf of the putative class. In February 2012, the court granted the defendants’ motion to dismiss the complaint. In December 2012, the court granted the plaintiff's motion to file an amended complaint. In April 2013, the court granted the defendants' motion to dismiss the amended complaint. In May 2013, the plaintiff appealed the District Court's decision to the U.S. Court of Appeals for the Third Circuit. | ||
Thimerosal | ||
Wyeth was a defendant in a number of individual suits and purported class actions by or on behalf of vaccine recipients alleging that exposure through vaccines to cumulative doses of thimerosal, a preservative used in certain childhood vaccines formerly manufactured and distributed by Wyeth and other vaccine manufacturers, caused severe neurological damage and/or autism in children. In addition to the suits alleging injury from exposure to thimerosal, certain of the cases were brought by parents in their individual capacities for, among other things, loss of services and loss of consortium of the injured child. All of the actions against Wyeth have been dismissed, either by the courts or voluntarily by the plaintiffs. | ||
The National Childhood Vaccine Injury Act (the Vaccine Act) requires that persons alleging injury from childhood vaccines first file a petition in the U.S. Court of Federal Claims asserting a vaccine-related injury. At the conclusion of that proceeding, petitioners may bring a lawsuit against the manufacturer in federal or state court, provided that they have satisfied certain procedural requirements. Also under the terms of the Vaccine Act, if a petition has not been adjudicated by the U.S. Court of Federal Claims within a specified time period after filing, the petitioner may opt out of the proceeding and pursue a lawsuit against the manufacturer by following certain procedures. Claims brought by parents for, among other things, loss of services and loss of consortium of the injured child are not covered by the Vaccine Act. | ||
In 2002, the Office of Special Masters of the U.S. Court of Federal Claims established an Omnibus Autism Proceeding with jurisdiction over petitions in which vaccine recipients claim to suffer from autism or autism spectrum disorder as a result of receiving thimerosal-containing childhood vaccines and/or the measles, mumps and rubella (MMR) vaccine. Special masters of the court have heard six test cases on petitioners’ theories that either thimerosal-containing vaccines in combination with the MMR vaccine or thimerosal-containing vaccines alone can cause autism or autism spectrum disorder. | ||
• | In February 2009, special masters of the U.S. Court of Federal Claims rejected the three cases brought on the theory that a combination of MMR and thimerosal-containing vaccines caused petitioners’ conditions. After these rulings were affirmed by the U.S. Court of Federal Claims, two of them were appealed by petitioners to the U.S. Court of Appeals for the Federal Circuit. In 2010, the Federal Circuit affirmed the decisions of the special masters in both of these cases. | |
• | In March 2010, special masters of the U.S. Court of Federal Claims rejected the three additional test cases brought on the theory that thimerosal-containing vaccines alone caused petitioners’ conditions. Petitioners did not seek review by the U.S. Court of Federal Claims of the decisions of the special masters in these latter three test cases, and judgments were entered dismissing the cases in April 2010. | |
• | Petitioners in each of the six test cases have filed an election to bring a civil action. | |
Various Drugs: Co-Pay Programs | ||
In July 2012, a purported class action was filed against Pfizer in the U.S. District Court for the Southern District of Illinois. The plaintiffs seek to represent a class consisting of all entities in the U.S. and its territories that have reimbursed patients for the purchase of certain Pfizer drugs for which co-pay programs exist or have existed. The plaintiffs allege that these programs violate the federal Racketeer Influenced and Corrupt Organization (RICO) Act and federal antitrust law by, among other things, providing an incentive for patients to use certain Pfizer drugs rather than less-expensive competitor products, thereby increasing the payers’ reimbursement costs. The plaintiffs seek treble damages on behalf of the putative class for their excess reimbursement costs allegedly attributable to the co-pay programs, as well as an injunction prohibiting us from offering such programs. Similar purported class actions have been filed against several other pharmaceutical companies. | ||
A3. Legal Proceedings––Commercial and Other Matters | ||
Average Wholesale Price Litigation | ||
Pfizer, certain of its subsidiaries and other pharmaceutical manufacturers are defendants in actions in various state courts by a number of states alleging that the defendants provided average wholesale price (AWP) information for certain of their products that was higher than the actual average prices at which those products were sold. The AWP is used to determine reimbursement levels under Medicare Part B and Medicaid and in many private-sector insurance policies and medical plans. The plaintiffs claim that the alleged spread between the AWPs at which purchasers were reimbursed and the actual sale prices was promoted by the defendants as an incentive to purchase certain of their products. In addition to suing on their own behalf, some of the plaintiff states seek to recover on behalf of individuals, private-sector insurance companies and medical plans in their states. These various actions allege, among other things, fraud, unfair competition, unfair trade practices and the violation of consumer protection statutes, and seek monetary and other relief, including civil penalties and treble damages. | ||
Monsanto-Related Matters | ||
In 1997, Monsanto Company (Former Monsanto) contributed certain chemical manufacturing operations and facilities to a newly formed corporation, Solutia Inc. (Solutia), and spun off the shares of Solutia. In 2000, Former Monsanto merged with Pharmacia & Upjohn Company to form Pharmacia Corporation (Pharmacia). Pharmacia then transferred its agricultural operations to a newly created subsidiary, named Monsanto Company (New Monsanto), which it spun off in a two-stage process that was completed in 2002. Pharmacia was acquired by Pfizer in 2003 and is now a wholly owned subsidiary of Pfizer. | ||
In connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities related to Pharmacia’s former agricultural business. New Monsanto is defending and indemnifying Pharmacia in connection with various claims and litigation arising out of, or related to, the agricultural business. | ||
In connection with its spin-off in 1997, Solutia assumed, and agreed to indemnify Pharmacia for, liabilities related to Former Monsanto's chemical businesses. As the result of its reorganization under Chapter 11 of the U.S. Bankruptcy Code, Solutia’s indemnification obligations related to Former Monsanto’s chemical businesses are limited to sites that Solutia has owned or operated. In addition, in connection with its spinoff that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities primarily related to Former Monsanto's chemical businesses, including, but not limited to, any such liabilities that Solutia assumed. Solutia's and New Monsanto's assumption of and agreement to indemnify Pharmacia for these liabilities apply to pending actions and any future actions related to Former Monsanto's chemical businesses in which Pharmacia is named as a defendant, including, without limitation, actions asserting environmental claims, including alleged exposure to polychlorinated biphenyls. Solutia and New Monsanto are defending and indemnifying Pharmacia in connection with various claims and litigation arising out of, or related to, Former Monsanto’s chemical businesses. | ||
Trade Secrets Action in California | ||
In 2004, Ischemia Research and Education Foundation (IREF) and its chief executive officer brought an action in California Superior Court, Santa Clara County, against a former IREF employee and Pfizer. Plaintiffs allege that defendants conspired to misappropriate certain information from IREF’s allegedly proprietary database in order to assist Pfizer in designing and executing a clinical study of a Pfizer drug. In 2008, the jury returned a verdict for compensatory damages of approximately $38.7 million. In March 2009, the court awarded prejudgment interest, but declined to award punitive damages. In July 2009, the court granted our motion for a new trial and vacated the jury verdict. In February 2013, the trial court's decision was affirmed by the California Court of Appeal, Sixth Appellate District. In May 2013, the action was remanded for further proceedings to the California Superior Court, Santa Clara County. | ||
Environmental Matters | ||
In 2009, we submitted to the U.S. Environmental Protection Agency (EPA) a corrective measures study report with regard to Pharmacia Corporation's discontinued industrial chemical facility in North Haven, Connecticut and a revised site-wide feasibility study with regard to Wyeth Holdings Corporation's discontinued industrial chemical facility in Bound Brook, New Jersey. In September 2010, our corrective measures study report with regard to the North Haven facility was approved by the EPA, and we commenced construction of the site remedy in late 2011 under an Updated Administrative Order on Consent with the EPA. In July 2011, Wyeth Holdings Corporation finalized an Administrative Settlement Agreement and Order on Consent for Removal Action with the EPA with regard to the Bound Brook facility. In May 2012, we completed construction of an interim remedy to address the discharge of impacted groundwater from that facility to the Raritan River. In September 2012, the EPA issued a final remediation plan for the Bound Brook facility's main plant area, which is generally in accordance with one of the remedies evaluated in our revised site-wide feasibility study. In March 2013, Wyeth Holdings Corporation entered into an Administrative Settlement Agreement and Order on Consent with the EPA to allow us to undertake detailed engineering design of the remedy for the main plant area and to perform a focused feasibility study for two adjacent lagoons. The estimated costs of the site remedy for the North Haven facility and the site remediation for the Bound Brook facility are covered by accruals previously taken by us. | ||
We are a party to a number of other proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA or Superfund), and other state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation. | ||
In October 2011, we voluntarily disclosed to the EPA potential non-compliance with certain provisions of the federal Clean Air Act at our Barceloneta, Puerto Rico manufacturing facility. We do not expect that any injunctive relief or penalties that may result from our voluntary disclosure will be material to Pfizer. Separately, in October 2012, the EPA issued an administrative complaint and penalty demand of $216,000 to resolve alleged non-compliance with similar provisions of the federal Clean Air Act that the EPA identified as part of its March 2010 inspection of the Barceloneta facility. We are in discussions with the EPA seeking to resolve these matters. | ||
A4. Legal Proceedings––Government Investigations | ||
Like other pharmaceutical companies, we are subject to extensive regulation by national, state and local government agencies in the U.S. and in the other countries in which we operate. As a result, we have interactions with government agencies on an ongoing basis. It is possible that criminal charges and substantial fines and/or civil penalties could result from government investigations. Among the investigations by government agencies is the matter discussed below. | ||
In 2009, the U.S. Department of Justice (DOJ) filed a civil complaint in intervention in two qui tam actions that had been filed under seal in the U.S. District Court for the District of Massachusetts. The complaint alleges that Wyeth’s practices relating to the pricing for Protonix for Medicaid rebate purposes between 2001 and 2006, prior to Wyeth's acquisition by Pfizer, violated the Federal Civil False Claims Act and federal common law. The two qui tam actions have been unsealed and the complaints include substantially similar allegations. In addition, in 2009, several states and the District of Columbia filed a complaint under the same docket number asserting violations of various state laws based on allegations substantially similar to those set forth in the civil complaint filed by the DOJ. We are exploring with the DOJ various ways to resolve this matter. | ||
A5. Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013 | ||
As previously reported, during the first nine months of 2013, certain matters, including those discussed below, were resolved or were the subject of definitive settlement agreements or settlement agreements-in-principle. | ||
Protonix (pantoprazole sodium) | ||
Wyeth has a license to market Protonix in the U.S. from Nycomed GmbH (Nycomed), which owns the patents relating to Protonix. Nycomed was acquired by Takeda Pharmaceutical Company Limited (Takeda) in 2011. The basic patent (including the six-month pediatric exclusivity period) for Protonix expired in January 2011. | ||
In June 2013, Pfizer announced a settlement of Pfizer’s and Takeda’s patent-infringement action against Teva Pharmaceutical Industries and Sun Pharmaceutical Industries Ltd. (Sun) in the U.S. District Court for the District of New Jersey that provides for the payment of a total of $2.15 billion by the two generic companies. In that action, Pfizer and Takeda sought compensation for damages resulting from Teva Pharmaceutical Industries’ and Sun’s “at-risk” launches of Protonix in the U.S. prior to the expiration of the basic patent. Pursuant to the settlement agreement: (i) Teva Pharmaceutical Industries agreed to pay Pfizer and Takeda a total of $800 million in 2013, of which $660 million has been paid to date, and an additional $800 million by October 2014, and (ii) Sun agreed to pay Pfizer and Takeda a total of $550 million, all of which has been paid. Pfizer is entitled to 64% and Takeda is entitled to 36% of the settlement proceeds. | ||
Separately, Wyeth and Nycomed were defendants in purported class actions in the U.S. District Court for the District of New Jersey that alleged violation of antitrust laws in connection with the procurement and enforcement of the patents for Protonix. These actions had been stayed pending resolution of the underlying patent litigation discussed above. In July 2013, after the settlement and dismissal of the underlying patent litigation, these purported class actions were dismissed with the consent of the parties. | ||
Rebif | ||
We have an exclusive collaboration agreement with EMD Serono, Inc. (Serono) to co-promote Rebif, a treatment for multiple sclerosis, in the U.S. In August 2011, Serono filed a complaint in the Philadelphia Court of Common Pleas seeking a declaratory judgment that we are not entitled to a 24-month extension of the Rebif co-promotion agreement, which otherwise would terminate at the end of 2013. We disagreed with Serono's interpretation of the agreement and believed that we have the right to extend the agreement to the end of 2015. In October 2011, the court sustained our preliminary objections and dismissed Serono’s complaint. In March 2013, the Superior Court of Pennsylvania affirmed the decision of the Philadelphia Court of Common Pleas dismissing Serono’s complaint, thereby upholding our right to extend the Rebif co-promotion agreement to the end of 2015. In May 2013, the Superior Court of Pennsylvania denied Serono’s petition seeking reconsideration of the decision. | ||
B. Guarantees and Indemnifications | ||
In the ordinary course of business and in connection with the sale of assets and businesses, we often indemnify our counterparties against certain liabilities that may arise in connection with the transaction or related to activities prior to the transaction. These indemnifications typically pertain to environmental, tax, employee and/or product-related matters and patent-infringement claims. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we would be required to reimburse the loss. These indemnifications are generally subject to threshold amounts, specified claim periods and other restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of September 29, 2013, recorded amounts for the estimated fair value of these indemnifications are not significant. | ||
Pfizer Inc. has also guaranteed the long-term debt of certain companies that it acquired and that now are subsidiaries of Pfizer. |
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A. Segment Information | |||||||||||||||||||||||||
We manage our operations through four operating segments––Primary Care, Specialty Care and Oncology, Established Products and Emerging Markets, and Consumer Healthcare. Each operating segment has responsibility for its commercial activities and for certain research and development activities related to in-line products and IPR&D projects that generally have achieved proof-of-concept. | |||||||||||||||||||||||||
We regularly review our segments and the approach used by management to evaluate performance and allocate resources. Generally, products are transferred to the Established Products unit in the beginning of the fiscal year following loss of patent protection or marketing exclusivity. | |||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||
A description of each of our four operating segments follows: | |||||||||||||||||||||||||
• | Primary Care operating segment––includes revenues and earnings, as defined by management, from prescription pharmaceutical products primarily prescribed by primary-care physicians, and may include products in the following therapeutic and disease areas: Alzheimer’s disease, cardiovascular (excluding pulmonary arterial hypertension), erectile dysfunction, genitourinary, major depressive disorder, pain, respiratory and smoking cessation. Examples of products in this unit in 2013 include Celebrex, Chantix/Champix, Eliquis, Lyrica, Premarin, Pristiq and Viagra (outside Canada and South Korea). All revenues and earnings for such products are allocated to the Primary Care unit, except those generated in Emerging Markets and those that are managed by the Established Products unit. | ||||||||||||||||||||||||
• | Specialty Care and Oncology operating segment––comprises the Specialty Care business unit and the Oncology business unit. | ||||||||||||||||||||||||
◦ | Specialty Care––includes revenues and earnings, as defined by management, from prescription pharmaceutical products primarily prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: anti-infectives, endocrine disorders, hemophilia, inflammation, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. Examples of products in this unit in 2013 include BeneFIX, Enbrel, Genotropin, Geodon (outside the U.S.), the Prevnar family of products, ReFacto AF, Revatio (outside the U.S.), Tygacil, Vfend (outside the U.S. and South Korea), Vyndaqel outside the U.S., Xalatan (outside the U.S., Canada, South Korea, developed Europe, Australia and New Zealand), Xeljanz, Xyntha and Zyvox. All revenues and earnings for such products are allocated to the Specialty Care unit, except those generated in Emerging Markets and those that are managed by the Established Products unit. | ||||||||||||||||||||||||
◦ | Oncology––includes revenues and earnings, as defined by management, from prescription pharmaceutical products addressing oncology and oncology-related illnesses. The products in this unit in 2013 include Inlyta, Sutent, Torisel, Xalkori, Mylotarg (in Japan), Bosulif (in the U.S. and European Union (EU)) and Aromasin (in Japan and South Korea). All revenues and earnings for such products are allocated to the Oncology unit, except those generated in Emerging Markets and those that are managed by the Established Products unit. | ||||||||||||||||||||||||
• | Established Products and Emerging Markets operating segment––comprises the Established Products business unit and the Emerging Markets business unit. | ||||||||||||||||||||||||
◦ | Established Products––includes revenues and earnings, as defined by management, from prescription pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically, products are transferred to this unit in the beginning of the fiscal year following loss of patent protection or marketing exclusivity. However, in certain situations, products may be transferred to this unit at a different point than the beginning of the fiscal year following loss of patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues and earnings generated in Emerging Markets. Examples of products in this unit in 2013 include Arthrotec, Effexor, Geodon (in the U.S.), Lipitor, Medrol, Norvasc, Protonix, Relpax, Vfend (in the U.S. and South Korea), Xalatan (in the U.S., Canada, South Korea, developed Europe, Australia and New Zealand), Zosyn/Tazocin and Viagra (in Canada and South Korea). | ||||||||||||||||||||||||
◦ | Emerging Markets––includes revenues and earnings, as defined by management, from all prescription pharmaceutical products sold in Emerging Markets, including Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | ||||||||||||||||||||||||
• | Consumer Healthcare operating segment––includes worldwide revenues and earnings, as defined by management, from non-prescription products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. Products marketed by Consumer Healthcare include Advil, Caltrate, Centrum, ChapStick, Emergen-C, Preparation H and Robitussin. | ||||||||||||||||||||||||
Our chief operating decision maker uses the revenues and earnings of the four operating segments, among other factors, for performance evaluation and resource allocation. For the operating segments that comprise more than one business unit, a single segment manager has responsibility for those business units. | |||||||||||||||||||||||||
Other Costs and Business Activities | |||||||||||||||||||||||||
Certain costs are not allocated to our operating segment results, such as costs associated with the following: | |||||||||||||||||||||||||
• | Worldwide Research and Development, which is generally responsible for research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate business unit for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization also has responsibility for certain science-based and other platform-services organizations, which provide technical expertise and other services to the various R&D projects. Worldwide Research and Development is also responsible for facilitating all regulatory submissions and interactions with regulatory agencies, including all safety-event activities. | ||||||||||||||||||||||||
• | Pfizer Medical, which is responsible for the provision of medical information to healthcare providers, patients and other parties, transparency and disclosure activities, clinical trial results publication, grants for healthcare quality improvement and medical education, partnerships with global public health and medical associations, regulatory inspection readiness reviews, internal audits of Pfizer-sponsored clinical trials and internal regulatory compliance processes. | ||||||||||||||||||||||||
• | Corporate, which is responsible for platform functions such as finance, global real estate operations, human resources, legal, compliance, science and technology, worldwide procurement, worldwide public affairs and policy and worldwide technology. These costs also include compensation costs and other miscellaneous operating expenses not charged to our operating segments, as well as interest income and expense. | ||||||||||||||||||||||||
• | Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) acquisition-related activities, where we incur costs for restructuring, integration, implementation and executing the transaction; and (iii) certain significant items, which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. | ||||||||||||||||||||||||
Segment Assets | |||||||||||||||||||||||||
We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared (such as our plant network assets) or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $176 billion as of September 29, 2013 and approximately $186 billion as of December 31, 2012. | |||||||||||||||||||||||||
Selected income statement information | |||||||||||||||||||||||||
The following table provides selected income statement information by reportable segment: | |||||||||||||||||||||||||
Revenues | R&D Expenses | Earnings(a) | |||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||
Primary Care(b) | $ | 3,259 | $ | 3,610 | $ | 245 | $ | 247 | $ | 1,917 | $ | 2,112 | |||||||||||||
Specialty Care and Oncology | 3,756 | 3,735 | 326 | 345 | 2,660 | 2,630 | |||||||||||||||||||
Established Products and Emerging Markets(c) | 4,727 | 4,772 | 95 | 84 | 2,680 | 2,673 | |||||||||||||||||||
Total reportable segments | 11,742 | 12,117 | 666 | 676 | 7,257 | 7,415 | |||||||||||||||||||
Consumer Healthcare and other business activities(d) | 834 | 836 | 734 | 933 | (491 | ) | (693 | ) | |||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||||
Corporate(e) | — | — | 220 | 217 | (1,369 | ) | (1,359 | ) | |||||||||||||||||
Purchase accounting adjustments(f) | — | — | 1 | (1 | ) | (960 | ) | (1,127 | ) | ||||||||||||||||
Acquisition-related costs(g) | — | — | — | — | (61 | ) | (237 | ) | |||||||||||||||||
Certain significant items(h) | 67 | — | 1 | 47 | (744 | ) | (1,052 | ) | |||||||||||||||||
Other unallocated(i) | — | — | 5 | 15 | (59 | ) | (141 | ) | |||||||||||||||||
$ | 12,643 | $ | 12,953 | $ | 1,627 | $ | 1,887 | $ | 3,573 | $ | 2,806 | ||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||
Primary Care(b) | $ | 9,830 | $ | 11,725 | $ | 682 | $ | 739 | $ | 6,002 | $ | 7,399 | |||||||||||||
Specialty Care and Oncology | 11,069 | 11,423 | 1,047 | 1,044 | 7,670 | 7,883 | |||||||||||||||||||
Established Products and Emerging Markets(c) | 14,499 | 15,173 | 264 | 223 | 8,303 | 8,926 | |||||||||||||||||||
Total reportable segments | 35,398 | 38,321 | 1,993 | 2,006 | 21,975 | 24,208 | |||||||||||||||||||
Consumer Healthcare and other business activities(d) | 2,561 | 2,445 | 2,113 | 2,322 | (1,410 | ) | (1,721 | ) | |||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||||
Corporate(e) | — | — | 639 | 705 | (4,194 | ) | (4,700 | ) | |||||||||||||||||
Purchase accounting adjustments(f) | — | — | (1 | ) | (4 | ) | (3,287 | ) | (3,713 | ) | |||||||||||||||
Acquisition-related costs(g) | — | — | — | 5 | (264 | ) | (638 | ) | |||||||||||||||||
Certain significant items(h) | 67 | — | 104 | 386 | 180 | (3,784 | ) | ||||||||||||||||||
Other unallocated(i) | — | — | 19 | 41 | (345 | ) | (487 | ) | |||||||||||||||||
$ | 38,026 | $ | 40,766 | $ | 4,867 | $ | 5,461 | $ | 12,655 | $ | 9,165 | ||||||||||||||
(a) | Income from continuing operations before provision for taxes on income. | ||||||||||||||||||||||||
(b) | Revenues and Earnings from the Primary Care segment decreased in the three and nine months ended September 29, 2013 as compared to the prior year, and Earnings as a percentage of revenues for the nine months ended September 29, 2013 also declined, primarily due to the loss of exclusivity for Lipitor in developed Europe and Australia; the subsequent shift in the reporting of Lipitor in those markets to the Established Products business unit; the losses of exclusivity of certain other products in various markets; lower Alliance revenues from Spiriva due to the ongoing expiration of the Spiriva collaboration in certain countries; and the termination of the co-promotion agreement for Aricept in Japan in December 2012. Earnings as a percentage of revenues increased for the three months ended September 29, 2013 primarily due to market growth of Lyrica as well as mid-year price increases. | ||||||||||||||||||||||||
(c) | Revenues from the Established Products and Emerging Markets segment decreased in the three and nine months ended September 29, 2013, and Earnings from the Established Products and Emerging Markets segment decreased in the nine months ended September 29, 2013, as compared to the prior year, primarily due to the continued erosion of branded Lipitor in the U.S. and Japan, partially offset by the addition of products in certain markets that shifted to the Established Products unit from other business units beginning January 1, 2013 and strong volume growth in China. Earnings as a percentage of revenue increased in the three months ended September 29, 2013 as compared to the prior year due to Lipitor and Norvasc growth in China. Earnings as a percentage of revenue decreased in the nine months ended September 29, 2013 as compared to the prior year due to the change in the mix of products. | ||||||||||||||||||||||||
(d) | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the R&D costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. | ||||||||||||||||||||||||
(e) | Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities, and for Earnings includes, among other things, administration expenses, interest income/(expense) and certain compensation and other costs not charged to our operating segments. | ||||||||||||||||||||||||
(f) | Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment. | ||||||||||||||||||||||||
(g) | Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives. | ||||||||||||||||||||||||
(h) | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. | ||||||||||||||||||||||||
For Revenues in the third quarter and first nine months of 2013, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||||||||||||||||||||||||
For Earnings in the third quarter of 2013, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (ii) certain asset impairments and related charges of $440 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $262 million, (iv) other charges of $43 million and (v) costs associated with a patent litigation settlement of $9 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the third quarter of 2012, certain significant items includes: (i) charges for certain legal matters of $723 million, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $263 million, (iii) costs associated with the separation of Zoetis of $32 million, (iv) certain asset impairment charges of $17 million and (v) other charges of $17 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the first nine months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) the gain associated with the transfer of certain product rights to our equity-method investment in China of $459 million, (iii) net credits for certain legal matters of $99 million, (iv) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (v) certain asset impairments and related charges of $929 million, (vi) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $662 million, (vii) other charges of $121 million and (viii) costs associated with the separation of Zoetis of $18 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the first nine months of 2012, certain significant items includes: (i) charges for certain legal matters of $2.0 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.1 billion, (iii) certain asset impairment charges of $506 million, (iv) costs associated with the separation of Zoetis of $93 million and (v) other charges of $55 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs. | |||||||||||||||||||||||||
(i) | Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. | ||||||||||||||||||||||||
B. Geographic Information | |||||||||||||||||||||||||
The following table provides revenues by geographic area: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | % | September 29, | September 30, | % | |||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||||
United States | $ | 5,186 | $ | 5,174 | — | $ | 15,190 | $ | 16,011 | (5 | ) | ||||||||||||||
Developed Europe(a) | 2,785 | 2,804 | (1 | ) | 8,502 | 9,433 | (10 | ) | |||||||||||||||||
Developed Rest of World(b) | 1,992 | 2,386 | (17 | ) | 6,139 | 7,383 | (17 | ) | |||||||||||||||||
Emerging Markets(c) | 2,680 | 2,589 | 4 | 8,195 | 7,939 | 3 | |||||||||||||||||||
Revenues | $ | 12,643 | $ | 12,953 | (2 | ) | $ | 38,026 | $ | 40,766 | (7 | ) | |||||||||||||
(a) | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.1 billion and $2.1 billion in both the third quarter of 2013 and 2012, and $6.4 billion and $7.1 billion in the first nine months of 2013 and 2012, respectively. | ||||||||||||||||||||||||
(b) | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | ||||||||||||||||||||||||
(c) | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | ||||||||||||||||||||||||
C. Other Revenue Information | |||||||||||||||||||||||||
Significant Product Revenues | |||||||||||||||||||||||||
The following table provides revenues by product: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Revenues from biopharmaceutical products: | |||||||||||||||||||||||||
Lyrica | $ | 1,135 | $ | 1,036 | $ | 3,335 | $ | 3,026 | |||||||||||||||||
Prevnar family | 959 | 949 | 2,855 | 3,028 | |||||||||||||||||||||
Enbrel (Outside the U.S. and Canada) | 932 | 893 | 2,769 | 2,780 | |||||||||||||||||||||
Celebrex | 752 | 676 | 2,120 | 1,969 | |||||||||||||||||||||
Lipitor | 533 | 749 | 1,704 | 3,364 | |||||||||||||||||||||
Viagra | 460 | 517 | 1,405 | 1,498 | |||||||||||||||||||||
Zyvox | 319 | 328 | 1,007 | 996 | |||||||||||||||||||||
Norvasc | 303 | 319 | 917 | 1,001 | |||||||||||||||||||||
Sutent | 278 | 294 | 892 | 913 | |||||||||||||||||||||
Premarin family | 276 | 262 | 793 | 797 | |||||||||||||||||||||
BeneFIX | 213 | 201 | 619 | 577 | |||||||||||||||||||||
Genotropin | 183 | 212 | 570 | 619 | |||||||||||||||||||||
Vfend | 193 | 187 | 557 | 543 | |||||||||||||||||||||
Pristiq | 173 | 152 | 516 | 461 | |||||||||||||||||||||
Chantix/Champix | 154 | 146 | 486 | 496 | |||||||||||||||||||||
Detrol/Detrol LA | 131 | 176 | 437 | 576 | |||||||||||||||||||||
Xalatan/Xalacom | 140 | 181 | 434 | 617 | |||||||||||||||||||||
ReFacto AF/Xyntha | 148 | 150 | 433 | 420 | |||||||||||||||||||||
Medrol | 107 | 113 | 343 | 388 | |||||||||||||||||||||
Zoloft | 116 | 129 | 341 | 398 | |||||||||||||||||||||
Effexor | 96 | 107 | 326 | 342 | |||||||||||||||||||||
Zosyn/Tazocin | 104 | 109 | 293 | 378 | |||||||||||||||||||||
Zithromax/Zmax | 84 | 89 | 283 | 318 | |||||||||||||||||||||
Tygacil | 92 | 82 | 271 | 249 | |||||||||||||||||||||
Relpax | 83 | 92 | 263 | 266 | |||||||||||||||||||||
Fragmin | 83 | 91 | 263 | 283 | |||||||||||||||||||||
Rapamune | 91 | 92 | 261 | 259 | |||||||||||||||||||||
EpiPen | 85 | 67 | 230 | 217 | |||||||||||||||||||||
Revatio | 75 | 135 | 225 | 414 | |||||||||||||||||||||
Sulperazon | 78 | 62 | 222 | 191 | |||||||||||||||||||||
Cardura | 70 | 79 | 221 | 254 | |||||||||||||||||||||
Inlyta | 83 | 29 | 217 | 53 | |||||||||||||||||||||
Xanax XR | 69 | 66 | 204 | 203 | |||||||||||||||||||||
Xalkori | 73 | 38 | 193 | 78 | |||||||||||||||||||||
Toviaz | 57 | 52 | 174 | 150 | |||||||||||||||||||||
Aricept(a) | 52 | 71 | 173 | 249 | |||||||||||||||||||||
Caduet | 52 | 68 | 164 | 191 | |||||||||||||||||||||
Inspra | 53 | 51 | 164 | 156 | |||||||||||||||||||||
Diflucan | 59 | 61 | 164 | 185 | |||||||||||||||||||||
Somavert | 56 | 49 | 159 | 143 | |||||||||||||||||||||
Neurontin | 50 | 52 | 158 | 172 | |||||||||||||||||||||
Dalacin/Cleocin | 50 | 74 | 149 | 176 | |||||||||||||||||||||
Xeljanz | 35 | — | 68 | — | |||||||||||||||||||||
Alliance revenues(b) | 684 | 879 | 2,187 | 2,577 | |||||||||||||||||||||
All other biopharmaceutical products | 1,923 | 1,952 | 5,833 | 6,350 | |||||||||||||||||||||
11,742 | 12,117 | 35,398 | 38,321 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||
Consumer Healthcare | 788 | 780 | 2,399 | 2,276 | |||||||||||||||||||||
Other(c) | 113 | 56 | 229 | 169 | |||||||||||||||||||||
$ | 12,643 | $ | 12,953 | $ | 38,026 | $ | 40,766 | ||||||||||||||||||
(a) Represents direct sales under license agreement with Eisai Co., Ltd. | |||||||||||||||||||||||||
(b) Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis. | |||||||||||||||||||||||||
(c) Other represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 29, 2013 | ||
Organization Consolidation And Presentation Of Financial Statements And Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
We prepared the condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. | ||
Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three and nine months ended August 25, 2013 and August 26, 2012. | ||
On June 24, 2013, we completed the full disposition of our Animal Health business (Zoetis), and recognized a gain of approximately $10.4 billion, net of tax, related to the disposal of this business in Gain on disposal of discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013. The operating results of this business are reported as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the nine months ended September 29, 2013 and for the three and nine months ended September 30, 2012. In addition, in the condensed consolidated balance sheet as of December 31, 2012, the assets and liabilities associated with this business are classified as Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, as appropriate. Prior period financial statements have been restated. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||
On November 30, 2012, we completed the sale of our Nutrition business to Nestlé. The operating results of this business are reported as Income from discontinued operations––net of tax in the condensed consolidated statements of income for the three and nine months ended September 30, 2012. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||
Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. | ||
We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our condensed consolidated balance sheets and condensed consolidated statements of income. | ||
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2012 Annual Report on Form 10-K/A. | ||
Adoption of New Accounting Standards | ' | |
Adoption of New Accounting Standards | ||
There were no new accounting and disclosure standards adopted in the nine months ended September 29, 2013. | ||
Fair Value | ' | |
Fair Value | ||
Our fair value methodologies depend on the following types of inputs: | ||
• | Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). | |
• | Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). | |
• | Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). | |
A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. |
Acquisitions_Divestitures_Coll1
Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Business Combinations, Discontinued Operations, And Disposal Groups [Abstract] | ' | ||||||||||||||||
Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Text Block] | ' | ||||||||||||||||
The following table provides the components of Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations: | |||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Accounts receivable, less allowance for doubtful accounts | $ | — | $ | 922 | |||||||||||||
Inventories | — | 1,137 | |||||||||||||||
Other current assets | — | 550 | |||||||||||||||
Property, plant and equipment, less accumulated depreciation | 133 | 1,318 | |||||||||||||||
Goodwill | — | 1,011 | |||||||||||||||
Identifiable intangible assets, less accumulated amortization | — | 867 | |||||||||||||||
Other noncurrent assets | — | 139 | |||||||||||||||
Assets of discontinued operations and other assets held for sale | $ | 133 | $ | 5,944 | |||||||||||||
Current liabilities | $ | 21 | $ | 874 | |||||||||||||
Other liabilities | — | 568 | |||||||||||||||
Liabilities of discontinued operations | $ | 21 | $ | 1,442 | |||||||||||||
Schedule of Discontinued Operations-Net of Tax | ' | ||||||||||||||||
The following table provides the components of Discontinued operations—net of tax: | |||||||||||||||||
Three Months Ended(a) | Nine Months Ended(a) | ||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues | $ | — | $ | 1,587 | $ | 2,201 | $ | 4,817 | |||||||||
Pre-tax income from discontinued operations(a) | $ | 32 | $ | 314 | $ | 421 | $ | 1,110 | |||||||||
Provision for taxes on income(b) | (4 | ) | 89 | 95 | 376 | ||||||||||||
Income from discontinued operations––net of tax | 36 | 225 | 326 | 734 | |||||||||||||
Pre-tax gain on disposal of discontinued operations | (38 | ) | — | 10,501 | — | ||||||||||||
Provision for taxes on income(c) | (13 | ) | — | 108 | — | ||||||||||||
Gain on disposal of discontinued operations––net of tax | (25 | ) | — | 10,393 | — | ||||||||||||
Discontinued operations––net of tax | $ | 11 | $ | 225 | $ | 10,719 | $ | 734 | |||||||||
(a) | Includes the Animal Health (Zoetis) business for the nine months ended September 29, 2013 (through the disposal date) and for the three and nine months ended September 30, 2012, and the Nutrition business for the three and nine months ended September 30, 2012. For the three months ended September 29, 2013, includes certain post-close adjustments. | ||||||||||||||||
(b) | Includes a deferred tax benefit of $4 million and $30 million for the three months ended September 29, 2013 and September 30, 2012, respectively, and a deferred tax benefit of $23 million and $10 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. These deferred tax provisions include deferred taxes related to investments in certain foreign subsidiaries resulting from our intention not to hold these subsidiaries indefinitely. | ||||||||||||||||
(c) | For the nine months ended September 29, 2013, primarily reflects income taxes resulting from certain legal entity reorganizations. |
Restructuring_Charges_and_Othe1
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Schedule of Costs Associated with Cost-Reduction/Productivity Initiatives and Acquisition Activity | ' | ||||||||||||||||||||
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) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restructuring charges(a): | |||||||||||||||||||||
Employee terminations | $ | 174 | $ | 132 | $ | 289 | $ | 439 | |||||||||||||
Asset impairments | — | 33 | 115 | 279 | |||||||||||||||||
Exit costs | 21 | 68 | 36 | 88 | |||||||||||||||||
Total restructuring charges | 195 | 233 | 440 | 806 | |||||||||||||||||
Integration costs(b) | 38 | 79 | 107 | 279 | |||||||||||||||||
Restructuring charges and certain acquisition-related costs | 233 | 312 | 547 | 1,085 | |||||||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | |||||||||||||||||||||
Cost of sales | 43 | 75 | 134 | 205 | |||||||||||||||||
Selling, informational and administrative expenses | — | 1 | 19 | 7 | |||||||||||||||||
Research and development expenses | — | — | 94 | 259 | |||||||||||||||||
Total additional depreciation––asset restructuring | 43 | 76 | 247 | 471 | |||||||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | |||||||||||||||||||||
Cost of sales | 16 | 18 | 27 | 22 | |||||||||||||||||
Selling, informational and administrative expenses | 30 | 47 | 95 | 77 | |||||||||||||||||
Research and development expenses | 1 | 47 | 10 | 132 | |||||||||||||||||
Total implementation costs | 47 | 112 | 132 | 231 | |||||||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 323 | $ | 500 | $ | 926 | $ | 1,787 | |||||||||||||
(a) | From the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013, Employee terminations represent the expected reduction of the workforce by approximately 63,500 employees, mainly in manufacturing, sales and research, of which approximately 57,000 employees have been terminated as of September 29, 2013. For the nine months ended September 29, 2013, substantially all employee termination costs represent additional costs with respect to approximately 1,300 employees. | ||||||||||||||||||||
The restructuring charges in 2013 are associated with the following: | |||||||||||||||||||||
• | For the three months ended September 29, 2013, Primary Care operating segment ($12 million), Specialty Care and Oncology operating segment ($18 million), Established Products and Emerging Markets operating segment ($4 million), Consumer Healthcare operating segment ($5 million), manufacturing operations ($112 million) and Corporate ($44 million). | ||||||||||||||||||||
• | For the nine months ended September 29, 2013, Primary Care operating segment ($29 million), Specialty Care and Oncology operating segment ($37 million), Established Products and Emerging Markets operating segment ($34 million), Consumer Healthcare operating segment ($6 million), research and development operations ($15 million), manufacturing operations ($194 million) and Corporate ($125 million). | ||||||||||||||||||||
The restructuring charges in 2012 are associated with the following: | |||||||||||||||||||||
• | For the three months ended September 30, 2012, Primary Care operating segment ($83 million), Specialty Care and Oncology operating segment ($60 million), Established Products and Emerging Markets operating segment ($16 million), Consumer Healthcare operating segment ($5 million), research and development operations ($39 million income), manufacturing operations ($48 million) and Corporate ($60 million). | ||||||||||||||||||||
• | For the nine months ended September 30, 2012, Primary Care operating segment ($51 million), Specialty Care and Oncology operating segment ($79 million), Established Products and Emerging Markets operating segment ($20 million), Consumer Healthcare operating segment ($18 million), research and development operations ($14 million income), manufacturing operations ($214 million) and Corporate ($438 million). | ||||||||||||||||||||
(b) | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | ||||||||||||||||||||
(c) | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||||||||||||||||||
(d) | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. | ||||||||||||||||||||
Schedule of Restructuring Accruals | ' | ||||||||||||||||||||
The following table provides the components of and changes in our restructuring accruals: | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Employee | Asset | Exit Costs | Accrual | |||||||||||||||||
Termination | Impairment | ||||||||||||||||||||
Costs | Charges | ||||||||||||||||||||
Balance, December 31, 2012(a) | $ | 1,734 | $ | — | $ | 152 | $ | 1,886 | |||||||||||||
Provision | 289 | 115 | 36 | 440 | |||||||||||||||||
Utilization and other(b) | (741 | ) | (115 | ) | (109 | ) | (965 | ) | |||||||||||||
Balance, September 29, 2013(c) | $ | 1,282 | $ | — | $ | 79 | $ | 1,361 | |||||||||||||
(a) | Included in Other current liabilities ($1.2 billion) and Other noncurrent liabilities ($720 million). | ||||||||||||||||||||
(b) | Includes adjustments for foreign currency translation. | ||||||||||||||||||||
(c) | Included in Other current liabilities ($717 million) and Other noncurrent liabilities ($644 million). | ||||||||||||||||||||
Schedule of Asset Impairment Charges Included In Restructuring Charges | ' | ||||||||||||||||||||
The following table provides additional information about the long-lived assets that were impaired during the first nine months of 2013 in Restructuring charges and certain acquisition-related costs: | |||||||||||||||||||||
Fair Value(a) | Nine Months Ended September 29, | ||||||||||||||||||||
2013 | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Assets held for sale(b) | $ | 84 | $ | — | $ | 84 | $ | — | $ | 64 | |||||||||||
Assets abandoned/demolished | — | — | — | — | 51 | ||||||||||||||||
Long-lived assets | $ | 84 | $ | — | $ | 84 | $ | — | $ | 115 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects property, plant and equipment and other long-lived held-for-sale assets written down to their fair value, less costs to sell of $2 million (a net of $82 million), in the first nine months of 2013. Fair value was determined primarily using a market approach, with various inputs, such as recent sales transactions. |
Other_IncomeDeductions_Net_Tab
Other (Income)/Deductions - Net (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||||||
Schedule of Other (Income)/Deductions-Net | ' | ||||||||||||||||||||
The following table provides components of Other (income)/deductions––net: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest income(a) | $ | (94 | ) | $ | (109 | ) | $ | (291 | ) | $ | (275 | ) | |||||||||
Interest expense(a) | 340 | 381 | 1,067 | 1,149 | |||||||||||||||||
Net interest expense | 246 | 272 | 776 | 874 | |||||||||||||||||
Royalty-related income | (122 | ) | (149 | ) | (305 | ) | (343 | ) | |||||||||||||
Patent litigation settlement income(b) | 9 | — | (1,342 | ) | — | ||||||||||||||||
Other legal matters, net(c) | 1 | 727 | (94 | ) | 2,014 | ||||||||||||||||
Gain associated with the transfer of certain product rights to an equity-method investment(d) | — | — | (459 | ) | — | ||||||||||||||||
Net gain on asset disposals | (46 | ) | (21 | ) | (100 | ) | (45 | ) | |||||||||||||
Certain asset impairments and related charges(e) | 443 | 14 | 968 | 524 | |||||||||||||||||
Costs associated with the Zoetis IPO(f) | — | 32 | 18 | 93 | |||||||||||||||||
Other, net(g) | (120 | ) | 62 | 24 | 147 | ||||||||||||||||
Other (income)/deductions––net | $ | 411 | $ | 937 | $ | (514 | ) | $ | 3,264 | ||||||||||||
(a) | Interest income decreased in the third quarter of 2013 as portfolio maturities were invested at lower rates; however, during the first nine months of 2013, interest income increased due to higher cash and investment balances. Interest expense decreased in the third quarter and first nine months of 2013 due to lower outstanding debt, refinancings and lower rates, and the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | ||||||||||||||||||||
(b) | In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. (Teva) and Sun Pharmaceutical Industries Ltd. (Sun) for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States. As of September 29, 2013, the remaining receivables from Teva are included in Taxes and other current assets ($474 million) and Taxes and other noncurrent assets ($128 million). For additional information, see Note 12A5. Commitments and Contingencies: Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013. | ||||||||||||||||||||
(c) | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. | ||||||||||||||||||||
(d) | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||
(e) | In the third quarter of 2013, includes intangible asset impairment charges of $185 million, primarily reflecting (i) $95 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax, and (ii) $90 million related to one IPR&D compound (full write-off), as well as a loss of $223 million related to an option to acquire the remaining interest in Laboratório Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (an equity-method investment). In addition, the third quarter of 2013 includes an impairment charge of approximately $32 million related to the aforementioned equity-method investment in Brazil. | ||||||||||||||||||||
In the first nine months of 2013, includes intangible asset impairment charges of $674 million, primarily reflecting (i) $394 million of developed technology rights (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth, (ii) $171 million related to three IPR&D compounds, and (iii) $109 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax. The intangible asset impairment charges for 2013 reflect, among other things, updated commercial forecasts and, with regard to IPR&D, the impact of new scientific findings. The intangible asset impairment charges for the first nine months of 2013 are associated with the following: Specialty Care ($394 million), Established Products ($185 million), Worldwide Research and Development ($43 million), Primary Care ($38 million), and Consumer Healthcare ($14 million). In addition, the first nine months of 2013 include a loss of $223 million related to an option to acquire the remaining interest Teuto, a 40%-owned generics company in Brazil (an equity-method investment), an impairment charge of approximately $39 million for certain private company investments and an impairment charge of $32 million related to the aforementioned equity-method investment in Brazil, Teuto. | |||||||||||||||||||||
In the first nine months of 2012, includes intangible asset impairment charges of $457 million reflecting (i) $314 million of IPR&D, substantially all related to assets that targeted autoimmune and inflammatory diseases (full write-off), (ii) $45 million related to our Consumer Healthcare indefinite-lived brand, Robitussin, a cough suppressant, and (iii) $98 million related to three developed technology rights. The intangible asset impairment charges for 2012 reflect, among other things, the impact of new scientific findings, updated commercial forecasts and an increased competitive environment. The impairment charges for the first nine months of 2012 are associated with the following: Worldwide Research and Development ($297 million); Consumer Healthcare ($45 million); Established Products ($44 million); Primary Care ($52 million) and Specialty Care ($19 million). In addition, the first nine months of 2012 includes charges of approximately $67 million for certain investments. These investment impairment charges reflect the difficult global economic environment. | |||||||||||||||||||||
(f) | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | ||||||||||||||||||||
(g) In the third quarter and first nine months of 2013, includes the gain of approximately $128 million and $109 million, respectively, reflecting the change in the fair value of the contingent consideration associated with our acquisition of NextWave. For additional information, see Note 2A. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Acquisitions. | |||||||||||||||||||||
Schedule of Additional Information About Intangible Assets Impaired | ' | ||||||||||||||||||||
The following table provides additional information about the intangible assets that were impaired during the first nine months of 2013 in Other (income)/deductions––net: | |||||||||||||||||||||
Fair Value(a) | Nine Months Ended September 29, | ||||||||||||||||||||
2013 | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Intangible assets––Developed technology rights(b) | $ | 564 | $ | — | $ | — | $ | 564 | $ | 394 | |||||||||||
Intangible assets––Brands(b) | 1,499 | — | — | 1,499 | 109 | ||||||||||||||||
Intangible assets––IPR&D(b) | 220 | — | — | 220 | 171 | ||||||||||||||||
Total | $ | 2,283 | $ | — | $ | — | $ | 2,283 | $ | 674 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects intangible assets written down to their fair value in the first nine months of 2013. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters_Tables
Tax Matters (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Tax Benefit on Other Comprehensive Income/(Loss) | ' | ||||||||||||||||
The following table provides the components of tax provision on Other comprehensive income/(loss): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign currency translation adjustments(a) | $ | (2 | ) | $ | (23 | ) | $ | 88 | $ | 14 | |||||||
Unrealized holding gains on derivative financial instruments | 205 | 137 | 152 | 80 | |||||||||||||
Reclassification adjustments for realized gains | (132 | ) | (52 | ) | (43 | ) | (34 | ) | |||||||||
73 | 85 | 109 | 46 | ||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities | (16 | ) | 4 | 32 | 17 | ||||||||||||
Reclassification adjustments for realized (gains)/losses | (14 | ) | 3 | (19 | ) | 8 | |||||||||||
(30 | ) | 7 | 13 | 25 | |||||||||||||
Benefit plans: actuarial gains/(losses), net | (1 | ) | (39 | ) | 10 | (157 | ) | ||||||||||
Reclassification adjustments related to amortization | 49 | 44 | 155 | 129 | |||||||||||||
Reclassification adjustments related to curtailments/settlements, net | 18 | 20 | 54 | 59 | |||||||||||||
Foreign currency translation adjustments and other | (23 | ) | (12 | ) | 35 | 5 | |||||||||||
43 | 13 | 254 | 36 | ||||||||||||||
Benefit plans: prior service (costs)/credits and other | — | (2 | ) | 1 | 6 | ||||||||||||
Reclassification adjustments related to amortization | (5 | ) | (7 | ) | (17 | ) | (21 | ) | |||||||||
Reclassification adjustments related to curtailments/settlements, net | — | (2 | ) | (4 | ) | (34 | ) | ||||||||||
Other | 1 | 2 | (1 | ) | — | ||||||||||||
(4 | ) | (9 | ) | (21 | ) | (49 | ) | ||||||||||
Tax provision on other comprehensive income/(loss) | $ | 80 | $ | 73 | $ | 443 | $ | 72 | |||||||||
(a) | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely |
Certain_Changes_in_Total_Equit1
Certain Changes in Total Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | ' | ||||||||||||||||||||||||
The following table provides the changes, net of tax, in Accumulated other comprehensive loss, excluding noncontrolling interests: | |||||||||||||||||||||||||
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 Loss | |||||||||||||||||||
Balance, December 31, 2012 | $ | (177 | ) | $ | (88 | ) | $ | 163 | $ | (6,110 | ) | $ | 259 | $ | (5,953 | ) | |||||||||
Other comprehensive income/(loss)(a) | (920 | ) | 163 | (116 | ) | 477 | (34 | ) | (430 | ) | |||||||||||||||
Balance, September 29, 2013 | $ | (1,097 | ) | $ | 75 | $ | 47 | $ | (5,633 | ) | $ | 225 | $ | (6,383 | ) | ||||||||||
(a) | Amounts do not include foreign currency translation loss of $65 million attributable to noncontrolling interests for the first nine months of 2013. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Information about Certain Financial Assets and Liabilities | ' | ||||||||||||||||||||||||
The following table provides additional information about certain of our financial assets and liabilities: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Selected financial assets measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Trading securities(b) | $ | 122 | $ | 142 | |||||||||||||||||||||
Available-for-sale debt securities(c) | 42,534 | 32,584 | |||||||||||||||||||||||
Available-for-sale money market funds(d) | 1,533 | 1,727 | |||||||||||||||||||||||
Available-for-sale equity securities, excluding money market funds(c) | 379 | 263 | |||||||||||||||||||||||
Derivative financial instruments in receivable positions(e): | |||||||||||||||||||||||||
Interest rate swaps | 495 | 1,036 | |||||||||||||||||||||||
Foreign currency swaps | 524 | 194 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 143 | 152 | |||||||||||||||||||||||
45,730 | 36,098 | ||||||||||||||||||||||||
Other selected financial assets | |||||||||||||||||||||||||
Held-to-maturity debt securities, carried at amortized cost(c), (f) | 1,465 | 1,459 | |||||||||||||||||||||||
Private equity securities, carried at equity-method or at cost(f), (g) | 2,250 | 1,239 | |||||||||||||||||||||||
3,715 | 2,698 | ||||||||||||||||||||||||
Total selected financial assets | $ | 49,445 | $ | 38,796 | |||||||||||||||||||||
Financial liabilities measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Derivative financial instruments in a liability position(h): | |||||||||||||||||||||||||
Interest rate swaps | $ | 200 | $ | 33 | |||||||||||||||||||||
Foreign currency swaps | 188 | 428 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 208 | 243 | |||||||||||||||||||||||
596 | 704 | ||||||||||||||||||||||||
Other financial liabilities(i) | |||||||||||||||||||||||||
Short-term borrowings, carried at historical proceeds, as adjusted(f) | 4,738 | 6,424 | |||||||||||||||||||||||
Long-term debt, carried at historical proceeds, as adjusted(j), (k) | 31,812 | 31,036 | |||||||||||||||||||||||
36,550 | 37,460 | ||||||||||||||||||||||||
Total selected financial liabilities | $ | 37,146 | $ | 38,164 | |||||||||||||||||||||
(a) | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 or Level 3 inputs. | ||||||||||||||||||||||||
(b) | Trading securities are held in trust for legacy business acquisition severance benefits. | ||||||||||||||||||||||||
(c) | Gross unrealized gains and losses are not significant. | ||||||||||||||||||||||||
(d) | Includes $447 million as of September 29, 2013 and $408 million as of December 31, 2012 of money market funds held in trust in connection with the asbestos litigation involving Quigley Company, Inc., a wholly owned subsidiary. | ||||||||||||||||||||||||
(e) | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $14 million and foreign currency forward-exchange contracts with fair values of $65 million as of September 29, 2013; and, foreign currency forward-exchange contracts with fair values of $102 million as of December 31, 2012. | ||||||||||||||||||||||||
(f) | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | ||||||||||||||||||||||||
(g) | Our private equity securities represent investments in the life sciences sector. The increase in 2013 primarily reflects an increased investment in our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||
(h) | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $97 million and foreign currency forward-exchange contracts with fair values of $83 million as of September 29, 2013; and, foreign currency swaps with fair values of $129 million and foreign currency forward-exchange contracts with fair values of $141 million as of December 31, 2012. | ||||||||||||||||||||||||
(i) | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | ||||||||||||||||||||||||
(j) | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. | ||||||||||||||||||||||||
(k) | The fair value of our long-term debt (not including the current portion of long-term debt) is $36.4 billion as of September 29, 2013 and $37.5 billion as of December 31, 2012. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. | ||||||||||||||||||||||||
Selected Financial Assets and Liabilities Presented in the Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 925 | $ | 947 | |||||||||||||||||||||
Short-term investments | 31,627 | 22,318 | |||||||||||||||||||||||
Long-term investments | 15,731 | 14,149 | |||||||||||||||||||||||
Taxes and other current assets(a) | 200 | 296 | |||||||||||||||||||||||
Taxes and other noncurrent assets(b) | 962 | 1,086 | |||||||||||||||||||||||
$ | 49,445 | $ | 38,796 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Short-term borrowings, including current portion of long-term debt | $ | 4,738 | $ | 6,424 | |||||||||||||||||||||
Other current liabilities(c) | 222 | 330 | |||||||||||||||||||||||
Long-term debt | 31,812 | 31,036 | |||||||||||||||||||||||
Other noncurrent liabilities(d) | 374 | 374 | |||||||||||||||||||||||
$ | 37,146 | $ | 38,164 | ||||||||||||||||||||||
(a) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($35 million), foreign currency swaps ($22 million) and foreign currency forward-exchange contracts ($143 million) and, as of December 31, 2012, include foreign currency swaps ($144 million) and foreign currency forward-exchange contracts ($152 million). | ||||||||||||||||||||||||
(b) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($460 million) and foreign currency swaps ($502 million) and, as of December 31, 2012, include interest rate swaps ($1.0 billion) and foreign currency swaps ($50 million). | ||||||||||||||||||||||||
(c) | As of September 29, 2013, derivative instruments at fair value include foreign currency swaps ($14 million) and foreign currency forward-exchange contracts ($208 million) and, as of December 31, 2012, include foreign currency swaps ($87 million) and foreign currency forward-exchange contracts ($243 million). | ||||||||||||||||||||||||
(d) | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($200 million) and foreign currency swaps ($174 million) and, as of December 31, 2012, include interest rate swaps ($33 million) and foreign currency swaps ($341 million). | ||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||||||||||||||||||
The following table provides the components of the senior unsecured long-term debt issued in the second quarter of 2013: | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
September 29, | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Maturity Date | 2013 | |||||||||||||||||||||||
1.50%(a) | Jun-18 | $ | 1,000 | ||||||||||||||||||||||
3.00%(b) | Jun-23 | 1,000 | |||||||||||||||||||||||
0.90%(a) | Jan-17 | 750 | |||||||||||||||||||||||
4.30%(b) | Jun-43 | 750 | |||||||||||||||||||||||
Three-month London Interbank Offering Rate (LIBOR) plus 0.30% | Jun-18 | 500 | |||||||||||||||||||||||
Total long-term debt issued in the second quarter of 2013 | $ | 4,000 | |||||||||||||||||||||||
(a) | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.10% plus, in each case, accrued and unpaid interest. | ||||||||||||||||||||||||
(b) | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.15% plus, in each case, accrued and unpaid interest. | ||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||||||||||
The following table provides the maturity schedule of our Long-term debt outstanding as of September 29, 2013: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2014 | 2015 | 2016 | 2017 | After 2017 | Total | |||||||||||||||||||
Maturities | $ | 1,259 | $ | 3,026 | $ | 4,439 | $ | 2,653 | $ | 20,435 | $ | 31,812 | |||||||||||||
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | ' | ||||||||||||||||||||||||
The following table provides the contractual maturities of the available-for-sale and held-to-maturity debt securities: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
Over 1 | Over 5 | September 29, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Within 1 | to 5 | to 10 | Over 10 | Total | ||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | $ | 20,409 | $ | 2,225 | $ | — | $ | — | $ | 22,634 | |||||||||||||||
Corporate debt(b) | 2,152 | 4,479 | 1,097 | 348 | 8,076 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt(a) | 2,955 | 440 | — | — | 3,395 | ||||||||||||||||||||
Reverse repurchase agreements(c) | 2,270 | — | — | — | 2,270 | ||||||||||||||||||||
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities | 663 | 873 | 11 | 524 | 2,071 | ||||||||||||||||||||
Supranational debt(a) | 1,086 | 919 | — | — | 2,005 | ||||||||||||||||||||
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities | — | 1,668 | — | 16 | 1,684 | ||||||||||||||||||||
U.S. government debt | 77 | 273 | 49 | — | 399 | ||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||
Certificates of deposit and other | 1,398 | 67 | — | — | 1,465 | ||||||||||||||||||||
Total debt securities | $ | 31,010 | $ | 10,944 | $ | 1,157 | $ | 888 | $ | 43,999 | |||||||||||||||
(a) | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | ||||||||||||||||||||||||
(b) | Largely issued by above-investment-grade institutions in the financial services sector. | ||||||||||||||||||||||||
(c) | Involving U.S. and U.K. government securities. | ||||||||||||||||||||||||
Schedule of Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk | ' | ||||||||||||||||||||||||
The following table provides information about the gains/(losses) recognized to hedge or offset operational foreign exchange or interest rate risk: | |||||||||||||||||||||||||
Amount of | Amount of | Amount of | |||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) | |||||||||||||||||||||||
Recognized in OID(a), (b), (c) | Recognized in OCI | Reclassified from | |||||||||||||||||||||||
(Effective Portion)(a), (d) | OCI into OID | ||||||||||||||||||||||||
(Effective Portion)(a), (d) | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 489 | $ | 455 | $ | 313 | $ | 221 | |||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | — | — | (2 | ) | (40 | ) | — | — | |||||||||||||||||
Foreign currency forward-exchange contracts | (4 | ) | — | (1 | ) | — | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | (81 | ) | (201 | ) | — | — | — | — | |||||||||||||||||
Foreign currency swaps | (15 | ) | 10 | — | — | — | — | ||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | (4 | ) | (20 | ) | — | — | |||||||||||||||||
All other net | — | — | 1 | — | — | — | |||||||||||||||||||
$ | (100 | ) | $ | (191 | ) | $ | 483 | $ | 395 | $ | 313 | $ | 221 | ||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | 334 | $ | 237 | $ | 64 | $ | 89 | |||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | (3 | ) | (2 | ) | 137 | 32 | — | — | |||||||||||||||||
Foreign currency forward-exchange contracts | (4 | ) | — | (1 | ) | — | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | 47 | (138 | ) | — | — | — | — | ||||||||||||||||||
Foreign currency swaps | (14 | ) | (7 | ) | — | — | — | — | |||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | 93 | 3 | — | — | |||||||||||||||||||
All other net | — | 2 | 2 | 5 | — | 5 | |||||||||||||||||||
$ | 26 | $ | (145 | ) | $ | 565 | $ | 277 | $ | 64 | $ | 94 | |||||||||||||
(a) | OID =ther (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income. | ||||||||||||||||||||||||
(b) | Also includes gains and losses attributable to the hedged risk in fair value hedge relationships. | ||||||||||||||||||||||||
(c) | There was no significant ineffectiveness for any period presented. | ||||||||||||||||||||||||
(d) | Amounts presented represent the effective portion of the gain or loss. For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding gains on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive income/(loss)––Foreign currency translation adjustments |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Inventories | ' | ||||||||
The following table provides the components of Inventories: | |||||||||
(MILLIONS OF DOLLARS) | September 29, | December 31, | |||||||
2013 | 2012 | ||||||||
Finished goods | $ | 2,471 | $ | 2,254 | |||||
Work-in-process | 3,601 | 3,374 | |||||||
Raw materials and supplies | 410 | 448 | |||||||
Inventories | $ | 6,482 | $ | 6,076 | |||||
Noncurrent inventories not included above(a) | $ | 573 | $ | 612 | |||||
(a) | Included in Taxes and other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||
The following table provides the components of and changes in the carrying amount of Goodwill: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Primary | Specialty | Established | Consumer Healthcare | Total | ||||||||||||||||||||
Care | Care and | Products and | |||||||||||||||||||||||
Oncology | Emerging | ||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 6,152 | $ | 16,885 | $ | 18,603 | $ | 2,021 | $ | 43,661 | |||||||||||||||
Derecognition(a) | — | — | (292 | ) | — | (292 | ) | ||||||||||||||||||
Other(b) | (140 | ) | (390 | ) | (429 | ) | (10 | ) | (969 | ) | |||||||||||||||
Balance, September 29, 2013 | $ | 6,012 | $ | 16,495 | $ | 17,882 | $ | 2,011 | $ | 42,400 | |||||||||||||||
(a) | Reflects the goodwill derecognized as part of the transfer of certain product rights, which constituted a business, to our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||
(b) | Primarily reflects the impact of foreign exchange. | ||||||||||||||||||||||||
Schedule of Finite Lived And Indefinite Lived Intangible Assets | ' | ||||||||||||||||||||||||
The following table provides the components of Identifiable intangible assets: | |||||||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Gross | Accumulated | Identifiable | Gross | Accumulated | Identifiable | |||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Amount | Assets, less | Amount | Assets, less | ||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||
Developed technology rights | $ | 72,025 | $ | (40,432 | ) | $ | 31,593 | $ | 72,349 | $ | (36,895 | ) | $ | 35,454 | |||||||||||
Brands | 1,657 | (752 | ) | 905 | 1,657 | (693 | ) | 964 | |||||||||||||||||
License agreements and other | 897 | (722 | ) | 175 | 914 | (642 | ) | 272 | |||||||||||||||||
74,579 | (41,906 | ) | 32,673 | 74,920 | (38,230 | ) | 36,690 | ||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Brands | 7,373 | — | 7,373 | 7,786 | — | 7,786 | |||||||||||||||||||
In-process research and development | 500 | — | 500 | 669 | — | 669 | |||||||||||||||||||
Trademarks/tradenames | 3 | — | 3 | 1 | — | 1 | |||||||||||||||||||
7,876 | — | 7,876 | 8,456 | — | 8,456 | ||||||||||||||||||||
Identifiable intangible assets(a) | $ | 82,455 | $ | (41,906 | ) | $ | 40,549 | $ | 83,376 | $ | (38,230 | ) | $ | 45,146 | |||||||||||
(a) | The decrease is primarily related to amortization, asset impairment charges and the transfer of certain product rights to our equity-method investment in China. For additional information about the asset impairment charges, see Note 4. Other (Income)/Deductions—Net. For additional information about the transfer of certain product rights, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. |
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
U.S. | U.S. | International(c) | Postretirement | ||||||||||||||||||||||||||||||
Qualified(a) | Supplemental | Plans | |||||||||||||||||||||||||||||||
(Non-Qualified)(b) | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | Sep 29, | Sep 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 75 | $ | 86 | $ | 7 | $ | 8 | $ | 50 | $ | 50 | $ | 15 | $ | 16 | |||||||||||||||||
Interest cost | 166 | 170 | 26 | 15 | 92 | 97 | 42 | 46 | |||||||||||||||||||||||||
Expected return on plan assets | (248 | ) | (247 | ) | — | — | (99 | ) | (103 | ) | (14 | ) | (12 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 88 | 75 | 11 | 10 | 27 | 29 | 11 | 8 | |||||||||||||||||||||||||
Prior service credits | (2 | ) | (2 | ) | (1 | ) | (2 | ) | (2 | ) | (3 | ) | (11 | ) | (13 | ) | |||||||||||||||||
Curtailments | — | — | — | — | (6 | ) | — | — | (3 | ) | |||||||||||||||||||||||
Settlements | 29 | 31 | 7 | 3 | 9 | 2 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | 1 | — | 8 | 1 | — | — | 1 | |||||||||||||||||||||||||
$ | 108 | $ | 114 | $ | 50 | $ | 42 | $ | 72 | $ | 72 | $ | 43 | $ | 43 | ||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 227 | $ | 272 | $ | 20 | $ | 27 | $ | 155 | $ | 151 | $ | 46 | $ | 51 | |||||||||||||||||
Interest cost | 501 | 528 | 53 | 47 | 279 | 297 | 125 | 137 | |||||||||||||||||||||||||
Expected return on plan assets | (752 | ) | (738 | ) | — | — | (301 | ) | (314 | ) | (41 | ) | (35 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 267 | 232 | 38 | 31 | 99 | 63 | 34 | 25 | |||||||||||||||||||||||||
Prior service credits | (5 | ) | (8 | ) | (2 | ) | (3 | ) | (5 | ) | (6 | ) | (33 | ) | (37 | ) | |||||||||||||||||
Curtailments | (1 | ) | (56 | ) | — | (8 | ) | (6 | ) | (9 | ) | (9 | ) | (26 | ) | ||||||||||||||||||
Settlements | 92 | 113 | 35 | 21 | 14 | 4 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | 8 | — | 23 | 3 | 3 | — | 5 | |||||||||||||||||||||||||
$ | 329 | $ | 351 | $ | 144 | $ | 138 | $ | 238 | $ | 189 | $ | 122 | $ | 120 | ||||||||||||||||||
(a) | The decrease in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. qualified plans was primarily driven by lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, lower settlement activity and greater expected return on plan assets resulting from a higher plan asset base, partially offset by the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. | ||||||||||||||||||||||||||||||||
(b) | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. supplemental (non-qualified) pension plans was primarily driven by higher settlement activity, an increase in the amounts amortized for actuarial losses resulting from the decrease in the discount rate and the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico, partially offset by special termination benefits in 2012. | ||||||||||||||||||||||||||||||||
(c) | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our international pension plans was primarily driven by an increase in the amounts amortized for actuarial losses resulting from decreases in discount rates and higher settlement activity. |
Earnings_Per_Common_Share_Attr1
Earnings Per Common Share Attributable to Common Shareholders (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Basic and Diluted Earning Per Share | ' | ||||||||||||||||
The following table provides the detailed calculation of Earnings per common share (EPS): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(IN MILLIONS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
EPS Numerator––Basic | |||||||||||||||||
Income from continuing operations | $ | 2,588 | $ | 2,989 | $ | 8,779 | $ | 7,543 | |||||||||
Less: Net income attributable to noncontrolling interests | 6 | 6 | 25 | 22 | |||||||||||||
Income from continuing operations attributable to Pfizer Inc. | 2,582 | 2,983 | 8,754 | 7,521 | |||||||||||||
Less: Preferred stock dividends––net of tax | — | 1 | 1 | 1 | |||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,582 | 2,982 | 8,753 | 7,520 | |||||||||||||
Discontinued operations––net of tax | 11 | 225 | 10,719 | 734 | |||||||||||||
Less: Discontinued operations––net of tax, attributable to noncontrolling interests | — | — | 39 | — | |||||||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 11 | 225 | 10,680 | 734 | |||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 2,593 | $ | 3,207 | $ | 19,433 | $ | 8,254 | |||||||||
EPS Numerator––Diluted | |||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,582 | $ | 2,983 | $ | 8,754 | $ | 7,521 | |||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 11 | 225 | 10,680 | 734 | |||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,593 | $ | 3,208 | $ | 19,434 | $ | 8,255 | |||||||||
EPS Denominator | |||||||||||||||||
Weighted-average number of common shares outstanding––Basic | 6,581 | 7,436 | 6,938 | 7,483 | |||||||||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 75 | 72 | 78 | 67 | |||||||||||||
Weighted-average number of common shares outstanding––Diluted | 6,656 | 7,508 | 7,016 | 7,550 | |||||||||||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | 180 | 43 | 180 | |||||||||||||
(a) | These common stock equivalents were outstanding for the three and nine months ended September 29, 2013 and September 30, 2012, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Segment_Geographic_and_Other_R1
Segment, Geographic and Other Revenue Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Selected Income Statement Information by Segment | ' | ||||||||||||||||||||||||
The following table provides selected income statement information by reportable segment: | |||||||||||||||||||||||||
Revenues | R&D Expenses | Earnings(a) | |||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||
Primary Care(b) | $ | 3,259 | $ | 3,610 | $ | 245 | $ | 247 | $ | 1,917 | $ | 2,112 | |||||||||||||
Specialty Care and Oncology | 3,756 | 3,735 | 326 | 345 | 2,660 | 2,630 | |||||||||||||||||||
Established Products and Emerging Markets(c) | 4,727 | 4,772 | 95 | 84 | 2,680 | 2,673 | |||||||||||||||||||
Total reportable segments | 11,742 | 12,117 | 666 | 676 | 7,257 | 7,415 | |||||||||||||||||||
Consumer Healthcare and other business activities(d) | 834 | 836 | 734 | 933 | (491 | ) | (693 | ) | |||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||||
Corporate(e) | — | — | 220 | 217 | (1,369 | ) | (1,359 | ) | |||||||||||||||||
Purchase accounting adjustments(f) | — | — | 1 | (1 | ) | (960 | ) | (1,127 | ) | ||||||||||||||||
Acquisition-related costs(g) | — | — | — | — | (61 | ) | (237 | ) | |||||||||||||||||
Certain significant items(h) | 67 | — | 1 | 47 | (744 | ) | (1,052 | ) | |||||||||||||||||
Other unallocated(i) | — | — | 5 | 15 | (59 | ) | (141 | ) | |||||||||||||||||
$ | 12,643 | $ | 12,953 | $ | 1,627 | $ | 1,887 | $ | 3,573 | $ | 2,806 | ||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||
Primary Care(b) | $ | 9,830 | $ | 11,725 | $ | 682 | $ | 739 | $ | 6,002 | $ | 7,399 | |||||||||||||
Specialty Care and Oncology | 11,069 | 11,423 | 1,047 | 1,044 | 7,670 | 7,883 | |||||||||||||||||||
Established Products and Emerging Markets(c) | 14,499 | 15,173 | 264 | 223 | 8,303 | 8,926 | |||||||||||||||||||
Total reportable segments | 35,398 | 38,321 | 1,993 | 2,006 | 21,975 | 24,208 | |||||||||||||||||||
Consumer Healthcare and other business activities(d) | 2,561 | 2,445 | 2,113 | 2,322 | (1,410 | ) | (1,721 | ) | |||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||||
Corporate(e) | — | — | 639 | 705 | (4,194 | ) | (4,700 | ) | |||||||||||||||||
Purchase accounting adjustments(f) | — | — | (1 | ) | (4 | ) | (3,287 | ) | (3,713 | ) | |||||||||||||||
Acquisition-related costs(g) | — | — | — | 5 | (264 | ) | (638 | ) | |||||||||||||||||
Certain significant items(h) | 67 | — | 104 | 386 | 180 | (3,784 | ) | ||||||||||||||||||
Other unallocated(i) | — | — | 19 | 41 | (345 | ) | (487 | ) | |||||||||||||||||
$ | 38,026 | $ | 40,766 | $ | 4,867 | $ | 5,461 | $ | 12,655 | $ | 9,165 | ||||||||||||||
(a) | Income from continuing operations before provision for taxes on income. | ||||||||||||||||||||||||
(b) | Revenues and Earnings from the Primary Care segment decreased in the three and nine months ended September 29, 2013 as compared to the prior year, and Earnings as a percentage of revenues for the nine months ended September 29, 2013 also declined, primarily due to the loss of exclusivity for Lipitor in developed Europe and Australia; the subsequent shift in the reporting of Lipitor in those markets to the Established Products business unit; the losses of exclusivity of certain other products in various markets; lower Alliance revenues from Spiriva due to the ongoing expiration of the Spiriva collaboration in certain countries; and the termination of the co-promotion agreement for Aricept in Japan in December 2012. Earnings as a percentage of revenues increased for the three months ended September 29, 2013 primarily due to market growth of Lyrica as well as mid-year price increases. | ||||||||||||||||||||||||
(c) | Revenues from the Established Products and Emerging Markets segment decreased in the three and nine months ended September 29, 2013, and Earnings from the Established Products and Emerging Markets segment decreased in the nine months ended September 29, 2013, as compared to the prior year, primarily due to the continued erosion of branded Lipitor in the U.S. and Japan, partially offset by the addition of products in certain markets that shifted to the Established Products unit from other business units beginning January 1, 2013 and strong volume growth in China. Earnings as a percentage of revenue increased in the three months ended September 29, 2013 as compared to the prior year due to Lipitor and Norvasc growth in China. Earnings as a percentage of revenue decreased in the nine months ended September 29, 2013 as compared to the prior year due to the change in the mix of products. | ||||||||||||||||||||||||
(d) | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the R&D costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. | ||||||||||||||||||||||||
(e) | Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities, and for Earnings includes, among other things, administration expenses, interest income/(expense) and certain compensation and other costs not charged to our operating segments. | ||||||||||||||||||||||||
(f) | Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment. | ||||||||||||||||||||||||
(g) | Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives. | ||||||||||||||||||||||||
(h) | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. | ||||||||||||||||||||||||
For Revenues in the third quarter and first nine months of 2013, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||||||||||||||||||||||||
For Earnings in the third quarter of 2013, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (ii) certain asset impairments and related charges of $440 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $262 million, (iv) other charges of $43 million and (v) costs associated with a patent litigation settlement of $9 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the third quarter of 2012, certain significant items includes: (i) charges for certain legal matters of $723 million, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $263 million, (iii) costs associated with the separation of Zoetis of $32 million, (iv) certain asset impairment charges of $17 million and (v) other charges of $17 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the first nine months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) the gain associated with the transfer of certain product rights to our equity-method investment in China of $459 million, (iii) net credits for certain legal matters of $99 million, (iv) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (v) certain asset impairments and related charges of $929 million, (vi) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $662 million, (vii) other charges of $121 million and (viii) costs associated with the separation of Zoetis of $18 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For Earnings in the first nine months of 2012, certain significant items includes: (i) charges for certain legal matters of $2.0 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.1 billion, (iii) certain asset impairment charges of $506 million, (iv) costs associated with the separation of Zoetis of $93 million and (v) other charges of $55 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net. | |||||||||||||||||||||||||
For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs. | |||||||||||||||||||||||||
(i) | Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. | ||||||||||||||||||||||||
Schedule of Revenues by Geographic Region | ' | ||||||||||||||||||||||||
The following table provides revenues by geographic area: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | % | September 29, | September 30, | % | |||||||||||||||||||
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||||
United States | $ | 5,186 | $ | 5,174 | — | $ | 15,190 | $ | 16,011 | (5 | ) | ||||||||||||||
Developed Europe(a) | 2,785 | 2,804 | (1 | ) | 8,502 | 9,433 | (10 | ) | |||||||||||||||||
Developed Rest of World(b) | 1,992 | 2,386 | (17 | ) | 6,139 | 7,383 | (17 | ) | |||||||||||||||||
Emerging Markets(c) | 2,680 | 2,589 | 4 | 8,195 | 7,939 | 3 | |||||||||||||||||||
Revenues | $ | 12,643 | $ | 12,953 | (2 | ) | $ | 38,026 | $ | 40,766 | (7 | ) | |||||||||||||
(a) | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.1 billion and $2.1 billion in both the third quarter of 2013 and 2012, and $6.4 billion and $7.1 billion in the first nine months of 2013 and 2012, respectively. | ||||||||||||||||||||||||
(b) | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | ||||||||||||||||||||||||
(c) | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | ||||||||||||||||||||||||
Schedule of Significant Product Revenues | ' | ||||||||||||||||||||||||
The following table provides revenues by product: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Revenues from biopharmaceutical products: | |||||||||||||||||||||||||
Lyrica | $ | 1,135 | $ | 1,036 | $ | 3,335 | $ | 3,026 | |||||||||||||||||
Prevnar family | 959 | 949 | 2,855 | 3,028 | |||||||||||||||||||||
Enbrel (Outside the U.S. and Canada) | 932 | 893 | 2,769 | 2,780 | |||||||||||||||||||||
Celebrex | 752 | 676 | 2,120 | 1,969 | |||||||||||||||||||||
Lipitor | 533 | 749 | 1,704 | 3,364 | |||||||||||||||||||||
Viagra | 460 | 517 | 1,405 | 1,498 | |||||||||||||||||||||
Zyvox | 319 | 328 | 1,007 | 996 | |||||||||||||||||||||
Norvasc | 303 | 319 | 917 | 1,001 | |||||||||||||||||||||
Sutent | 278 | 294 | 892 | 913 | |||||||||||||||||||||
Premarin family | 276 | 262 | 793 | 797 | |||||||||||||||||||||
BeneFIX | 213 | 201 | 619 | 577 | |||||||||||||||||||||
Genotropin | 183 | 212 | 570 | 619 | |||||||||||||||||||||
Vfend | 193 | 187 | 557 | 543 | |||||||||||||||||||||
Pristiq | 173 | 152 | 516 | 461 | |||||||||||||||||||||
Chantix/Champix | 154 | 146 | 486 | 496 | |||||||||||||||||||||
Detrol/Detrol LA | 131 | 176 | 437 | 576 | |||||||||||||||||||||
Xalatan/Xalacom | 140 | 181 | 434 | 617 | |||||||||||||||||||||
ReFacto AF/Xyntha | 148 | 150 | 433 | 420 | |||||||||||||||||||||
Medrol | 107 | 113 | 343 | 388 | |||||||||||||||||||||
Zoloft | 116 | 129 | 341 | 398 | |||||||||||||||||||||
Effexor | 96 | 107 | 326 | 342 | |||||||||||||||||||||
Zosyn/Tazocin | 104 | 109 | 293 | 378 | |||||||||||||||||||||
Zithromax/Zmax | 84 | 89 | 283 | 318 | |||||||||||||||||||||
Tygacil | 92 | 82 | 271 | 249 | |||||||||||||||||||||
Relpax | 83 | 92 | 263 | 266 | |||||||||||||||||||||
Fragmin | 83 | 91 | 263 | 283 | |||||||||||||||||||||
Rapamune | 91 | 92 | 261 | 259 | |||||||||||||||||||||
EpiPen | 85 | 67 | 230 | 217 | |||||||||||||||||||||
Revatio | 75 | 135 | 225 | 414 | |||||||||||||||||||||
Sulperazon | 78 | 62 | 222 | 191 | |||||||||||||||||||||
Cardura | 70 | 79 | 221 | 254 | |||||||||||||||||||||
Inlyta | 83 | 29 | 217 | 53 | |||||||||||||||||||||
Xanax XR | 69 | 66 | 204 | 203 | |||||||||||||||||||||
Xalkori | 73 | 38 | 193 | 78 | |||||||||||||||||||||
Toviaz | 57 | 52 | 174 | 150 | |||||||||||||||||||||
Aricept(a) | 52 | 71 | 173 | 249 | |||||||||||||||||||||
Caduet | 52 | 68 | 164 | 191 | |||||||||||||||||||||
Inspra | 53 | 51 | 164 | 156 | |||||||||||||||||||||
Diflucan | 59 | 61 | 164 | 185 | |||||||||||||||||||||
Somavert | 56 | 49 | 159 | 143 | |||||||||||||||||||||
Neurontin | 50 | 52 | 158 | 172 | |||||||||||||||||||||
Dalacin/Cleocin | 50 | 74 | 149 | 176 | |||||||||||||||||||||
Xeljanz | 35 | — | 68 | — | |||||||||||||||||||||
Alliance revenues(b) | 684 | 879 | 2,187 | 2,577 | |||||||||||||||||||||
All other biopharmaceutical products | 1,923 | 1,952 | 5,833 | 6,350 | |||||||||||||||||||||
11,742 | 12,117 | 35,398 | 38,321 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||
Consumer Healthcare | 788 | 780 | 2,399 | 2,276 | |||||||||||||||||||||
Other(c) | 113 | 56 | 229 | 169 | |||||||||||||||||||||
$ | 12,643 | $ | 12,953 | $ | 38,026 | $ | 40,766 | ||||||||||||||||||
(a) Represents direct sales under license agreement with Eisai Co., Ltd. | |||||||||||||||||||||||||
(b) Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis. | |||||||||||||||||||||||||
(c) Other represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Jun. 24, 2013 |
Zoetis [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' |
Gain on disposal of discontinued operations––net of tax | ($25) | $0 | $10,393 | $0 | $10,400 |
Acquisitions_Divestitures_Coll2
Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment - Narrative (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||
Share data in Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 06, 2012 | Sep. 29, 2013 | Oct. 01, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 06, 2012 | Oct. 01, 2013 | Jun. 24, 2013 | Mar. 31, 2013 | Jun. 24, 2013 | Nov. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Feb. 06, 2013 | Jun. 24, 2013 | Jan. 28, 2013 | Jun. 24, 2013 | Nov. 27, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Nov. 27, 2012 | Nov. 27, 2012 | Feb. 26, 2012 | Sep. 29, 2013 | |||||||
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Glaxosmithkline plc [Member] | Glaxosmithkline plc [Member] | Pfizer [Member] | Pfizer [Member] | Pfizer [Member] | Pfizer [Member] | Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | Nutrition [Member] | Nutrition [Member] | Nutrition [Member] | Nutrition [Member] | Nutrition [Member] | IPO [Member] | Exchange offer [Member] | Senior Notes [Member] | Common Class A [Member] | NextWave Pharmaceuticals, Inc. [Member] | NextWave Pharmaceuticals, Inc. [Member] | NextWave Pharmaceuticals, Inc. [Member] | NextWave Pharmaceuticals, Inc. [Member] | NextWave Pharmaceuticals, Inc. [Member] | Alacer Corp [Member] | Ferrosan Holding A/S [Member] | |||||||||||||
ViiV Healthcare Limited [Member] | Subsequent Event [Member] | ViiV Healthcare Limited [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Subsequent Event [Member] | Zoetis [Member] | Pfizer [Member] | Zoetis [Member] | Exchange offer [Member] | Developed Technology Rights [Member] | In-Process Research And Development [Member] | |||||||||||||||||||||||||||
ViiV Healthcare Limited [Member] | ViiV Healthcare Limited [Member] | Zoetis [Member] | ||||||||||||||||||||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Business combination, consideration transferred, including equity interest in acquiree held prior to combination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $442,000,000 | ' | ' | ' | ' | ' | ' | |||||||
Payments to acquire businesses, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278,000,000 | ' | ' | ' | ' | ' | ' | |||||||
Business combination, contingent consideration, liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 164,000,000 | ' | ' | ' | ' | ' | ' | |||||||
Business combination, recognized identifiable assets acquired, goodwill, and liabilities assumed, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 519,000,000 | ' | ' | ' | ' | ' | ' | |||||||
Identifiable intangible assets, excluding in-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 474,000,000 | 45,000,000 | ' | ' | |||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, deferred tax liabilities noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,000,000 | ' | ' | ' | ' | 69,000,000 | 94,000,000 | |||||||
Goodwill | 42,400,000,000 | ' | 42,400,000,000 | ' | 43,661,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89,000,000 | ' | ' | ' | ' | 192,000,000 | 322,000,000 | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,000,000 | 109,000,000 | ' | ' | ' | ' | |||||||
Identifiable intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 181,000,000 | 362,000,000 | |||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Initial public offering, long-term debt assumed, parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Cash Proceeds From Exchange of Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Initial public offering, cash proceeds received, parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Subsidiary or equity method investee, cumulative number of shares issued for all transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,015 | 405,117 | ' | 400,985 | ' | ' | ' | ' | ' | ' | ' | |||||||
Repayments of Short-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Treasury Stock, Value | 63,272,000,000 | ' | 63,272,000,000 | ' | 40,122,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Gain on disposal of discontinued operations––net of tax | -25,000,000 | 0 | 10,393,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 10,400,000,000 | ' | ' | ' | -25,000,000 | 0 | [1] | 10,393,000,000 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Administrative Service Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Manufacturing Service Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Sale price for discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,850,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net gains on asset disposals | 46,000,000 | 21,000,000 | 100,000,000 | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Collaborative Arrangement, Payments Received | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Collaborative Arrangement, Collaborator's Revenue and Expense Ownership Percentage | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Collaborative Arrangement, Company's Revenue and Expense Ownership Percentage | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment summarized financial information, equity | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment, summarized financial information, current assets, cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 122,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | ' | 76.50% | 77.40% | 13.50% | 49.00% | ' | 12.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment, realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Gain associated with Pfizer's equity-method investment in China | 0 | [2] | 0 | [2] | 459,000,000 | [2] | 0 | [2] | ' | ' | ' | ' | ' | 459,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity method investment, summarized financial information, gain (loss) associated with indirect retained interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Fair value inputs, discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment, aggregate cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Equity method investment, underlying equity in net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Finite-lived intangible asset, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '25 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
[1] | Includes the Animal Health (Zoetis) business for the nine months ended September 29, 2013 (through the disposal date) and for the three and nine months ended September 30, 2012, and the Nutrition business for the three and nine months ended September 30, 2012. For the three months ended September 29, 2013, includes certain post-close adjustments. | |||||||||||||||||||||||||||||||||||||
[2] | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. |
Acquisitions_Divestitures_Coll3
Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investment - Discontinued Operations - Net of Tax (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 24, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Jun. 24, 2013 | Feb. 06, 2013 | ||||
Zoetis [Member] | Nutrition [Member] | Nutrition [Member] | Nutrition [Member] | Nutrition [Member] | Zoetis [Member] | IPO [Member] | ||||||||||
Zoetis [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Subsidiary or equity method investee, cumulative number of shares issued for all transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,015 | ||||
Treasury Stock, Value | $63,272 | ' | $63,272 | ' | $40,122 | $11,400 | ' | ' | ' | ' | ' | ' | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ' | ' | 0 | 1,587 | [1] | 2,201 | [1] | 4,817 | [1] | ' | ' | |
Pre-tax income from discontinued operations(a) | ' | ' | ' | ' | ' | ' | 32 | [1] | 314 | [1] | 421 | [1] | 1,110 | [1] | ' | ' |
Provision for taxes on income(b) | ' | ' | ' | ' | ' | ' | -4 | [2] | 89 | [1],[2] | 95 | [1],[2] | 376 | [1],[2] | ' | ' |
Income from discontinued operations––net of tax | 36 | 225 | 326 | 734 | ' | ' | 36 | 225 | [1] | 326 | [1] | 734 | [1] | ' | ' | |
Pre-tax gain on disposal of discontinued operations | ' | ' | ' | ' | ' | ' | -38 | 0 | [1] | 10,501 | [1] | 0 | [1] | ' | ' | |
Provision for taxes on income(c) | ' | ' | ' | ' | ' | ' | -13 | [3] | 0 | [1],[3] | 108 | [1],[3] | 0 | [1],[3] | ' | ' |
Gain on disposal of discontinued operations––net of tax | -25 | 0 | 10,393 | 0 | ' | ' | -25 | 0 | [1] | 10,393 | [1] | 0 | [1] | 10,400 | ' | |
Discontinued operations––net of tax | 11 | 225 | 10,719 | 734 | ' | ' | 11 | 225 | [1] | 10,719 | [1] | 734 | [1] | ' | ' | |
Deferred tax expense (benefit) | ' | ' | ' | ' | ' | ' | 4 | 30 | 23 | 10 | ' | ' | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Accounts receivable, less allowance for doubtful accounts | 0 | ' | 0 | ' | 922 | ' | ' | ' | ' | ' | ' | ' | ||||
Inventories | 0 | ' | 0 | ' | 1,137 | ' | ' | ' | ' | ' | ' | ' | ||||
Other current assets | 0 | ' | 0 | ' | 550 | ' | ' | ' | ' | ' | ' | ' | ||||
Property, plant and equipment, less accumulated depreciation | 133 | ' | 133 | ' | 1,318 | ' | ' | ' | ' | ' | ' | ' | ||||
Goodwill | 0 | ' | 0 | ' | 1,011 | ' | ' | ' | ' | ' | ' | ' | ||||
Identifiable intangible assets, less accumulated amortization | 0 | ' | 0 | ' | 867 | ' | ' | ' | ' | ' | ' | ' | ||||
Other noncurrent assets | 0 | ' | 0 | ' | 139 | ' | ' | ' | ' | ' | ' | ' | ||||
Assets of discontinued operations and other assets held for sale | 133 | ' | 133 | ' | 5,944 | ' | ' | ' | ' | ' | ' | ' | ||||
Current liabilities | 21 | ' | 21 | ' | 874 | ' | ' | ' | ' | ' | ' | ' | ||||
Other liabilities | 0 | ' | 0 | ' | 568 | ' | ' | ' | ' | ' | ' | ' | ||||
Liabilities of discontinued operations | $21 | ' | $21 | ' | $1,442 | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Includes the Animal Health (Zoetis) business for the nine months ended September 29, 2013 (through the disposal date) and for the three and nine months ended September 30, 2012, and the Nutrition business for the three and nine months ended September 30, 2012. For the three months ended September 29, 2013, includes certain post-close adjustments. | |||||||||||||||
[2] | Includes a deferred tax benefit of $4 million and $30 million for the three months ended September 29, 2013 and September 30, 2012, respectively, and a deferred tax benefit of $23 million and $10 million for the nine months ended September 29, 2013 and September 30, 2012, respectively. These deferred tax provisions include deferred taxes related to investments in certain foreign subsidiaries resulting from our intention not to hold these subsidiaries indefinitely. | |||||||||||||||
[3] | For the nine months ended September 29, 2013, primarily reflects income taxes resulting from certain legal entity reorganizations. |
Restructuring_Charges_and_Othe2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 105 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | ||||
Restructuring charges(a): | ' | ' | ' | ' | ' | ||||
Employee terminations | $174 | [1] | $132 | [1] | $289 | [1] | $439 | [1] | ' |
Asset impairments | 0 | [1] | 33 | [1] | 115 | [1] | 279 | [1] | ' |
Exit costs | 21 | [1] | 68 | [1] | 36 | [1] | 88 | [1] | ' |
Total restructuring charges | 195 | [1] | 233 | [1] | 440 | [1] | 806 | [1] | 16,100 |
Integration costs(b) | 38 | [2] | 79 | [2] | 107 | [2] | 279 | [2] | ' |
Restructuring charges and certain acquisition-related costs | 233 | 312 | 547 | 1,085 | ' | ||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | ' | ' | ' | ' | ' | ||||
Total additional depreciation––asset restructuring | 43 | [3] | 76 | [3] | 247 | [3] | 471 | [3] | ' |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ' | ' | ' | ||||
Total implementation costs | 47 | [4] | 112 | [4] | 132 | [4] | 231 | [4] | ' |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 323 | 500 | 926 | 1,787 | ' | ||||
Cost of Sales [Member] | ' | ' | ' | ' | ' | ||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | ' | ' | ' | ' | ' | ||||
Total additional depreciation––asset restructuring | 43 | [3] | 75 | [3] | 134 | [3] | 205 | [3] | ' |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ' | ' | ' | ||||
Total implementation costs | 16 | [4] | 18 | [4] | 27 | [4] | 22 | [4] | ' |
Selling Informational And Administrative Expenses [Member] | ' | ' | ' | ' | ' | ||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | ' | ' | ' | ' | ' | ||||
Total additional depreciation––asset restructuring | 0 | [3] | 1 | [3] | 19 | [3] | 7 | [3] | ' |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ' | ' | ' | ||||
Total implementation costs | 30 | [4] | 47 | [4] | 95 | [4] | 77 | [4] | ' |
Research and Development Expenses [Member] | ' | ' | ' | ' | ' | ||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | ' | ' | ' | ' | ' | ||||
Total additional depreciation––asset restructuring | ' | [3] | 0 | [3] | 94 | [3] | 259 | [3] | ' |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ' | ' | ' | ||||
Total implementation costs | $1 | [4] | $47 | [4] | $10 | [4] | $132 | [4] | ' |
[1] | From the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013, Employee terminations represent the expected reduction of the workforce by approximately 63,500 employees, mainly in manufacturing, sales and research, of which approximately 57,000 employees have been terminated as of September 29, 2013. For the nine months ended September 29, 2013, substantially all employee termination costs represent additional costs with respect to approximately 1,300 employees.The restructuring charges in 2013 are associated with the following:•For the three months ended September 29, 2013, Primary Care operating segment ($12 million), Specialty Care and Oncology operating segment ($18 million), Established Products and Emerging Markets operating segment ($4 million), Consumer Healthcare operating segment ($5 million), manufacturing operations ($112 million) and Corporate ($44 million).•For the nine months ended September 29, 2013, Primary Care operating segment ($29 million), Specialty Care and Oncology operating segment ($37 million), Established Products and Emerging Markets operating segment ($34 million), Consumer Healthcare operating segment ($6 million), research and development operations ($15 million), manufacturing operations ($194 million) and Corporate ($125 million).The restructuring charges in 2012 are associated with the following:•For the three months ended September 30, 2012, Primary Care operating segment ($83 million), Specialty Care and Oncology operating segment ($60 million), Established Products and Emerging Markets operating segment ($16 million), Consumer Healthcare operating segment ($5 million), research and development operations ($39 million income), manufacturing operations ($48 million) and Corporate ($60 million).•For the nine months ended September 30, 2012, Primary Care operating segment ($51 million), Specialty Care and Oncology operating segment ($79 million), Established Products and Emerging Markets operating segment ($20 million), Consumer Healthcare operating segment ($18 million), research and development operations ($14 million income), manufacturing operations ($214 million) and Corporate ($438 million). | ||||||||
[2] | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | ||||||||
[3] | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||||||
[4] | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring_Charges_and_Othe3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 105 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | $195 | [1] | $233 | [1] | $440 | [1] | $806 | [1] | $16,100 |
Primary Care [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | 12 | 83 | 29 | 51 | ' | ||||
Specialty Care And Oncology [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | 18 | 60 | 37 | 79 | ' | ||||
Established Products and Emerging Markets [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | 4 | 16 | 34 | 20 | ' | ||||
Other Operating Segments [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | 5 | 5 | 6 | 18 | ' | ||||
Research and Development Operations [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | ' | 39 | 15 | 14 | ' | ||||
Manufacturing Operations [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | 112 | 48 | 194 | 214 | ' | ||||
Corporate [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Total restructuring charges | $44 | $60 | $125 | $438 | ' | ||||
Employee Termination Costs [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Estimated Employee Terminations | ' | ' | 1,300 | ' | 63,500 | ||||
Restructuring and Related Activities, Initiation Date | ' | ' | ' | ' | 1-Jan-05 | ||||
Restructuring and Related Activities, Current Date | ' | ' | ' | ' | 29-Sep-13 | ||||
Actual Employees Terminated | ' | ' | ' | ' | 57,000 | ||||
[1] | From the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013, Employee terminations represent the expected reduction of the workforce by approximately 63,500 employees, mainly in manufacturing, sales and research, of which approximately 57,000 employees have been terminated as of September 29, 2013. For the nine months ended September 29, 2013, substantially all employee termination costs represent additional costs with respect to approximately 1,300 employees.The restructuring charges in 2013 are associated with the following:•For the three months ended September 29, 2013, Primary Care operating segment ($12 million), Specialty Care and Oncology operating segment ($18 million), Established Products and Emerging Markets operating segment ($4 million), Consumer Healthcare operating segment ($5 million), manufacturing operations ($112 million) and Corporate ($44 million).•For the nine months ended September 29, 2013, Primary Care operating segment ($29 million), Specialty Care and Oncology operating segment ($37 million), Established Products and Emerging Markets operating segment ($34 million), Consumer Healthcare operating segment ($6 million), research and development operations ($15 million), manufacturing operations ($194 million) and Corporate ($125 million).The restructuring charges in 2012 are associated with the following:•For the three months ended September 30, 2012, Primary Care operating segment ($83 million), Specialty Care and Oncology operating segment ($60 million), Established Products and Emerging Markets operating segment ($16 million), Consumer Healthcare operating segment ($5 million), research and development operations ($39 million income), manufacturing operations ($48 million) and Corporate ($60 million).•For the nine months ended September 30, 2012, Primary Care operating segment ($51 million), Specialty Care and Oncology operating segment ($79 million), Established Products and Emerging Markets operating segment ($20 million), Consumer Healthcare operating segment ($18 million), research and development operations ($14 million income), manufacturing operations ($214 million) and Corporate ($438 million). |
Restructuring_Charges_and_Othe4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2012(a) | $1,886 | [1] |
Provision | 440 | |
Utilization and other(b) | -965 | [2] |
Balance, September 29, 2013(c) | 1,361 | [3] |
Employee Termination Costs [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2012(a) | 1,734 | [1] |
Provision | 289 | |
Utilization and other(b) | -741 | [2] |
Balance, September 29, 2013(c) | 1,282 | [3] |
Asset Impairment Charges [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2012(a) | 0 | [1] |
Provision | 115 | |
Utilization and other(b) | -115 | [2] |
Balance, September 29, 2013(c) | 0 | [3] |
Exit Costs [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2012(a) | 152 | [1] |
Provision | 36 | |
Utilization and other(b) | -109 | [2] |
Balance, September 29, 2013(c) | $79 | [3] |
[1] | Included in Other current liabilities ($1.2 billion) and Other noncurrent liabilities ($720 million). | |
[2] | Includes adjustments for foreign currency translation. | |
[3] | Included in Other current liabilities ($717 million) and Other noncurrent liabilities ($644 million). |
Restructuring_Charges_and_Othe5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 105 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Dec. 31, 2012 | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ||||||
Restructuring Reserve | $1,361 | [1] | ' | $1,361 | [1] | ' | $1,361 | [1] | $1,886 | [2] | ||
Other current liabilities | 717 | ' | 717 | ' | 717 | ' | ||||||
Other noncurrent liabilities | 644 | ' | 644 | ' | 644 | ' | ||||||
Total restructuring charges | 195 | [3] | 233 | [3] | 440 | [3] | 806 | [3] | 16,100 | ' | ||
Other Current Liabilities [Member] | ' | ' | ' | ' | ' | ' | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ||||||
Restructuring Reserve | ' | ' | ' | ' | ' | 1,200 | ||||||
Other Long-Term Liabilties [Member] | ' | ' | ' | ' | ' | ' | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ||||||
Restructuring Reserve | ' | ' | ' | ' | ' | $720 | ||||||
[1] | Included in Other current liabilities ($717 million) and Other noncurrent liabilities ($644 million). | |||||||||||
[2] | Included in Other current liabilities ($1.2 billion) and Other noncurrent liabilities ($720 million). | |||||||||||
[3] | From the beginning of our cost-reduction/productivity initiatives in 2005 through September 29, 2013, Employee terminations represent the expected reduction of the workforce by approximately 63,500 employees, mainly in manufacturing, sales and research, of which approximately 57,000 employees have been terminated as of September 29, 2013. For the nine months ended September 29, 2013, substantially all employee termination costs represent additional costs with respect to approximately 1,300 employees.The restructuring charges in 2013 are associated with the following:•For the three months ended September 29, 2013, Primary Care operating segment ($12 million), Specialty Care and Oncology operating segment ($18 million), Established Products and Emerging Markets operating segment ($4 million), Consumer Healthcare operating segment ($5 million), manufacturing operations ($112 million) and Corporate ($44 million).•For the nine months ended September 29, 2013, Primary Care operating segment ($29 million), Specialty Care and Oncology operating segment ($37 million), Established Products and Emerging Markets operating segment ($34 million), Consumer Healthcare operating segment ($6 million), research and development operations ($15 million), manufacturing operations ($194 million) and Corporate ($125 million).The restructuring charges in 2012 are associated with the following:•For the three months ended September 30, 2012, Primary Care operating segment ($83 million), Specialty Care and Oncology operating segment ($60 million), Established Products and Emerging Markets operating segment ($16 million), Consumer Healthcare operating segment ($5 million), research and development operations ($39 million income), manufacturing operations ($48 million) and Corporate ($60 million).•For the nine months ended September 30, 2012, Primary Care operating segment ($51 million), Specialty Care and Oncology operating segment ($79 million), Established Products and Emerging Markets operating segment ($20 million), Consumer Healthcare operating segment ($18 million), research and development operations ($14 million income), manufacturing operations ($214 million) and Corporate ($438 million). |
Restructuring_Charges_and_Othe6
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Asset Impairment Charges (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | |
Assets held for sale(b) | $84 | [1],[2] |
Assets held for sale, impairment | 64 | [2] |
Assets abandoned/demolished | 0 | [1] |
Assets abandoned/demolished, impairment | 51 | |
Long-lived assets | 84 | [1] |
Long-lived assets, impairment | 115 | |
Fair Value, Inputs, Level 1 [Member] | ' | |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | |
Assets held for sale(b) | 0 | [1],[2] |
Assets abandoned/demolished | 0 | [1] |
Long-lived assets | 0 | [1] |
Fair Value, Inputs, Level 2 [Member] | ' | |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | |
Assets held for sale(b) | 84 | [1],[2] |
Assets abandoned/demolished | 0 | [1] |
Long-lived assets | 84 | [1] |
Fair Value, Inputs, Level 3 [Member] | ' | |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | |
Assets held for sale(b) | 0 | [1],[2] |
Assets abandoned/demolished | 0 | [1] |
Long-lived assets | $0 | [1] |
[1] | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | |
[2] | Reflects property, plant and equipment and other long-lived held-for-sale assets written down to their fair value, less costs to sell of $2 million (a net of $82 million), in the first nine months of 2013. Fair value was determined primarily using a market approach, with various inputs, such as recent sales transactions. |
Restructuring_Charges_and_Othe7
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Asset Impairment Charges (Parenthetical) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Impaired Long-Lived Assets Held and Used [Line Items] | ' |
Long-lived assets held-for-sale cost of sale | $2 |
Property, plant, and equipment and other long-lived assets, fair value | $82 |
Other_IncomeDeductions_Net_Det
Other (Income)/Deductions - Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Other Income and Expenses [Abstract] | ' | ' | ' | ' | ||||
Interest income(a) | ($94) | [1] | ($109) | [1] | ($291) | [1] | ($275) | [1] |
Interest expense(a) | 340 | [1] | 381 | [1] | 1,067 | [1] | 1,149 | [1] |
Net interest expense | 246 | 272 | 776 | 874 | ||||
Royalty-related income | -122 | -149 | -305 | -343 | ||||
Patent litigation settlement income(b) | 9 | [2] | 0 | [2] | -1,342 | [2] | 0 | [2] |
Other legal matters, net(c) | 1 | [3] | 727 | [3] | -94 | [3] | 2,014 | [3] |
Gain associated with the transfer of certain product rights to an equity-method investment | 0 | [4] | 0 | [4] | -459 | [4] | 0 | [4] |
Net gain on asset disposals | -46 | -21 | -100 | -45 | ||||
Certain asset impairments and related charges(e) | 443 | [5] | 14 | [5] | 968 | [5] | 524 | [5] |
Costs associated with the Zoetis IPO(f) | 0 | [6] | 32 | [6] | 18 | [6] | 93 | [6] |
Other, net(g) | -120 | [7] | 62 | [7] | 24 | [7] | 147 | [7] |
Other (income)/deductions––net | $411 | $937 | ($514) | $3,264 | ||||
[1] | Interest income decreased in the third quarter of 2013 as portfolio maturities were invested at lower rates; however, during the first nine months of 2013, interest income increased due to higher cash and investment balances. Interest expense decreased in the third quarter and first nine months of 2013 due to lower outstanding debt, refinancings and lower rates, and the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | |||||||
[2] | In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. (Teva) and Sun Pharmaceutical Industries Ltd. (Sun) for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States. As of September 29, 2013, the remaining receivables from Teva are included in Taxes and other current assets ($474 million) and Taxes and other noncurrent assets ($128 million). For additional information, see Note 12A5. Commitments and Contingencies: Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013. | |||||||
[3] | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. | |||||||
[4] | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |||||||
[5] | In the third quarter of 2013, includes intangible asset impairment charges of $185 million, primarily reflecting (i) $95 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax, and (ii) $90 million related to one IPR&D compound (full write-off), as well as a loss of $223 million related to an option to acquire the remaining interest in Laboratório Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (an equity-method investment). In addition, the third quarter of 2013 includes an impairment charge of approximately $32 million related to the aforementioned equity-method investment in Brazil.In the first nine months of 2013, includes intangible asset impairment charges of $674 million, primarily reflecting (i) $394 million of developed technology rights (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth, (ii) $171 million related to three IPR&D compounds, and (iii) $109 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax. The intangible asset impairment charges for 2013 reflect, among other things, updated commercial forecasts and, with regard to IPR&D, the impact of new scientific findings. The intangible asset impairment charges for the first nine months of 2013 are associated with the following: Specialty Care ($394 million), Established Products ($185 million), Worldwide Research and Development ($43 million), Primary Care ($38 million), and Consumer Healthcare ($14 million). In addition, the first nine months of 2013 include a loss of $223 million related to an option to acquire the remaining interest Teuto, a 40%-owned generics company in Brazil (an equity-method investment), an impairment charge of approximately $39 million for certain private company investments and an impairment charge of $32 million related to the aforementioned equity-method investment in Brazil, Teuto. In the first nine months of 2012, includes intangible asset impairment charges of $457 million reflecting (i) $314 million of IPR&D, substantially all related to assets that targeted autoimmune and inflammatory diseases (full write-off), (ii) $45 million related to our Consumer Healthcare indefinite-lived brand, Robitussin, a cough suppressant, and (iii) $98 million related to three developed technology rights. The intangible asset impairment charges for 2012 reflect, among other things, the impact of new scientific findings, updated commercial forecasts and an increased competitive environment. The impairment charges for the first nine months of 2012 are associated with the following: Worldwide Research and Development ($297 million); Consumer Healthcare ($45 million); Established Products ($44 million); Primary Care ($52 million) and Specialty Care ($19 million). In addition, the first nine months of 2012 includes charges of approximately $67 million for certain investments. These investment impairment charges reflect the difficult global economic environment. | |||||||
[6] | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures. | |||||||
[7] | In the third quarter and first nine months of 2013, includes the gain of approximately $128 million and $109 million, respectively, reflecting the change in the fair value of the contingent consideration associated with our acquisition of NextWave. For additional information, see Note 2A. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Acquisitions. |
Other_IncomeDeductions_Net_Par
Other (Income)/Deductions - Net (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Taxes and other current assets | $7,835 | ' | $7,835 | ' | $8,956 | ||||
Taxes and other noncurrent assets | 4,982 | ' | 4,982 | ' | 4,798 | ||||
Insurance settlement gross recovery | ' | ' | 80 | ' | ' | ||||
Product litigation, hormone replacement therapy | 1 | [1] | 727 | [1] | -94 | [1] | 2,014 | [1] | ' |
Intangible asset impairments | 185 | ' | 674 | 457 | ' | ||||
NextWave Pharmaceuticals, Inc. [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 128 | ' | 109 | ' | ' | ||||
Indefinite Lived Brands [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 109 | [2] | ' | ' | |||
In-Process Research And Development [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | 90 | ' | 171 | [2] | 314 | ' | |||
Developed Technology Rights [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 394 | [2] | 98 | ' | |||
Celebrex [Member] | Brigham Young University [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Product litigation, hormone replacement therapy | ' | ' | ' | 450 | ' | ||||
Xanax [Member] | Indefinite Lived Brands [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | 95 | ' | 109 | ' | ' | ||||
Rapamune [Member] | U.S. Department of Justice [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Product litigation, hormone replacement therapy | ' | 491 | ' | 491 | ' | ||||
Robitussin [Member] | Consumer Healthcare [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | ' | 45 | ' | ||||
Worldwide Research and Development [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 43 | 297 | ' | ||||
Established Products [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 185 | 44 | ' | ||||
Primary Care [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 38 | 52 | ' | ||||
Consumer Healthcare [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 14 | 45 | ' | ||||
Specialty Care [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | 394 | 19 | ' | ||||
Certain Investments [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | ' | ' | ' | 67 | ' | ||||
IPO [Member] | Zoetis [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Percentage of ownership interests owned by public stockholders | 19.80% | ' | 19.80% | ' | ' | ||||
Brazil Generics Company [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset impairments | 32 | ' | 39 | ' | ' | ||||
Equity method investment, realized gain (loss) | -223 | ' | -223 | ' | ' | ||||
Equity method investment, ownership percentage | 40.00% | ' | 40.00% | ' | ' | ||||
Equity method investment, other than temporary impairment | ' | ' | 32 | ' | ' | ||||
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Pfizer [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Equity method investment, ownership percentage | 49.00% | ' | 49.00% | ' | ' | ||||
Litigation Settlement Payment [Member] | Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries Ltd. [Member] | Wyeth - Protonix [Member] | ' | ' | ' | ' | ' | ||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ||||
Taxes and other current assets | 474 | ' | 474 | ' | ' | ||||
Taxes and other noncurrent assets | $128 | ' | $128 | ' | ' | ||||
[1] | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. | ||||||||
[2] | Reflects intangible assets written down to their fair value in the first nine months of 2013. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other_IncomeDeductions_Net_Add
Other (Income)/Deductions - Net - Additional Information about Intangible Assets (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | $2,283 | [1] | $2,283 | [1] | ' |
Impairment charges | 185 | 674 | 457 | ||
Developed Technology Rights [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 564 | [1],[2] | 564 | [1],[2] | ' |
Impairment charges | ' | 394 | [2] | 98 | |
Indefinite Lived Brands [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 1,499 | [1],[2] | 1,499 | [1],[2] | ' |
Impairment charges | ' | 109 | [2] | ' | |
In-Process Research And Development [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 220 | [1],[2] | 220 | [1],[2] | ' |
Impairment charges | 90 | 171 | [2] | 314 | |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1] | 0 | [1] | ' |
Fair Value, Inputs, Level 1 [Member] | Developed Technology Rights [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 1 [Member] | Indefinite Lived Brands [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 1 [Member] | In-Process Research And Development [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1] | 0 | [1] | ' |
Fair Value, Inputs, Level 2 [Member] | Developed Technology Rights [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 2 [Member] | Indefinite Lived Brands [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 2 [Member] | In-Process Research And Development [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 0 | [1],[2] | 0 | [1],[2] | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 2,283 | [1] | 2,283 | [1] | ' |
Fair Value, Inputs, Level 3 [Member] | Developed Technology Rights [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 564 | [1],[2] | 564 | [1],[2] | ' |
Fair Value, Inputs, Level 3 [Member] | Indefinite Lived Brands [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | 1,499 | [1],[2] | 1,499 | [1],[2] | ' |
Fair Value, Inputs, Level 3 [Member] | In-Process Research And Development [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Intangible assets, fair value | $220 | [1],[2] | $220 | [1],[2] | ' |
[1] | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||
[2] | Reflects intangible assets written down to their fair value in the first nine months of 2013. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other_IncomeDeductions_Net_Add1
Other (Income)/Deductions - Net - Additional Information about Intangible Assets (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | $185 | $674 | $457 | ||
Intangible assets, fair value | 2,283 | [1] | 2,283 | [1] | ' |
Developed Technology Rights [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | ' | 394 | [2] | 98 | |
Intangible assets, fair value | 564 | [1],[2] | 564 | [1],[2] | ' |
In-Process Research And Development [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | 90 | 171 | [2] | 314 | |
Intangible assets, fair value | 220 | [1],[2] | 220 | [1],[2] | ' |
Primary Care [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | ' | 38 | 52 | ||
Specialty Care [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | ' | 394 | 19 | ||
Consumer Healthcare [Member] | ' | ' | ' | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ||
Impairment of Intangible Assets (Excluding Goodwill) | ' | $14 | $45 | ||
[1] | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||
[2] | Reflects intangible assets written down to their fair value in the first nine months of 2013. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters_Narrative_Detail
Tax Matters - Narrative (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Effective tax rate for income from continuing operations | 27.60% | -6.50% | 30.60% | 17.70% |
Tax_Matters_Detail
Tax Matters (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Tax Expense/(Benefit) on Other Comprehensive Income/(Loss) | ' | ' | ' | ' | ||||
Foreign currency translation adjustments(a) | ($2) | [1] | ($23) | [1] | $88 | [1] | $14 | [1] |
Unrealized holding gains on derivative financial instruments | 205 | 137 | 152 | 80 | ||||
Reclassification adjustments for realized gains | -132 | -52 | -43 | -34 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Total | 73 | 85 | 109 | 46 | ||||
Unrealized holding gains/(losses) on available-for-sale securities | -16 | 4 | 32 | 17 | ||||
Reclassification adjustments for realized (gains)/losses | -14 | 3 | -19 | 8 | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Total | -30 | 7 | 13 | 25 | ||||
Benefit plans: actuarial gains/(losses), net | -1 | -39 | 10 | -157 | ||||
Reclassification adjustments related to amortization | 49 | 44 | 155 | 129 | ||||
Reclassification adjustments related to curtailments/settlements, net | 18 | 20 | 54 | 59 | ||||
Foreign currency translation adjustments and other | -23 | -12 | 35 | 5 | ||||
Other Comprehensive Income Defined Benefit Plans Actuarial Gain Loss Tax Effect Period Decrease Increase | 43 | 13 | 254 | 36 | ||||
Benefit plans: prior service (costs)/credits and other | 0 | -2 | 1 | 6 | ||||
Reclassification adjustments related to amortization | -5 | -7 | -17 | -21 | ||||
Reclassification adjustments related to curtailments/settlements, net | 0 | -2 | -4 | -34 | ||||
Other | 1 | 2 | -1 | 0 | ||||
Other Comprehensive Income Defined Benefit Plan Net Prior Service Cost Credit Tax Effect Period Decrease Increase | -4 | -9 | -21 | -49 | ||||
Tax provision on other comprehensive income/(loss) | $80 | [2] | $73 | [2] | $443 | [2] | $72 | [2] |
[1] | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. | |||||||
[2] | See Note 5C. Tax Matters: Taxes on Items of Other Comprehensive Income/(Loss). |
Certain_Changes_in_Total_Equit2
Certain Changes in Total Equity (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||
Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Jun. 24, 2013 | Feb. 06, 2013 | Sep. 29, 2013 | |||||||
Foreign Currency Translation Adjustment [Member] | Derivative Financial Instruments [Member] | Available-For-Sale Securities [Member] | Accumulated Defined Benefit Plans Adjustment, Actuarial Gains / (Losses) [Member] | Accumulated Defined Benefit Plans Adjustment, Prior Service (Costs) / Credits and Other [Member] | Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | ||||||||
IPO [Member] | Exchange offer [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | $2,300,000,000 | ' | ||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | 19.80% | ' | ||||||
Treasury Stock, Value, Acquired, Cost Method | 11,600,000,000 | ' | ' | ' | ' | ' | ' | ' | 11,400,000,000 | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | 80.20% | ' | ' | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Balance, December 31, 2012 | -5,953,000,000 | -177,000,000 | -88,000,000 | 163,000,000 | -6,110,000,000 | 259,000,000 | ' | ' | ' | ||||||
Other comprehensive income/(loss)(a) | -430,000,000 | [1] | -920,000,000 | [1] | 163,000,000 | [1] | -116,000,000 | [1] | 477,000,000 | [1] | -34,000,000 | [1] | ' | ' | ' |
Balance, September 29, 2013 | ($6,383,000,000) | ($1,097,000,000) | $75,000,000 | $47,000,000 | ($5,633,000,000) | $225,000,000 | ' | ' | ' | ||||||
[1] | Amounts do not include foreign currency translation loss of $65 million attributable to noncontrolling interests for the first nine months of 2013. |
Certain_Changes_in_Total_Equit3
Certain Changes in Total Equity (Parenthetical) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Foreign currency translation adjustments attributable to noncontrolling interests | $65 |
Financial_Instruments_Assets_a
Financial Instruments Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Other selected financial assets | ' | ' | ||
Held-to-maturity debt securities, carried at amortized cost(c), (f) | $1,465 | [1],[2] | $1,459 | [1],[2] |
Private equity securities, carried at equity-method or at cost(f), (g) | 2,250 | [2],[3] | 1,239 | [2],[3] |
Total | 3,715 | 2,698 | ||
Total selected financial assets | 49,445 | 38,796 | ||
Other financial liabilities(i) | ' | ' | ||
Short-term borrowings, carried at historical proceeds, as adjusted(f) | 4,738 | [2],[4] | 6,424 | [2],[4] |
Long-term debt, carried at historical proceeds, as adjusted(j), (k) | 31,812 | [4],[5] | 31,036 | [4],[5] |
Total | 36,550 | [4] | 37,460 | [4] |
Total selected financial liabilities | 37,146 | [4] | 38,164 | [4] |
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 45,730 | [6],[7] | 36,098 | [6],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(h): | 596 | [6],[8] | 704 | [6],[8] |
Fair Value, Measurements, Recurring [Member] | Trading securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 122 | [6],[9] | 142 | [6],[9] |
Fair Value, Measurements, Recurring [Member] | Available for-sale debt securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 42,534 | [1],[6] | 32,584 | [1],[6] |
Fair Value, Measurements, Recurring [Member] | Available-for-sale money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 1,533 | [10],[6] | 1,727 | [10],[6] |
Fair Value, Measurements, Recurring [Member] | Available-for-sale equity securities, excluding money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 379 | [1],[6] | 263 | [1],[6] |
Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(e): | 495 | [6],[7] | 1,036 | [6],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(h): | 200 | [6],[8] | 33 | [6],[8] |
Fair Value, Measurements, Recurring [Member] | Foreign currency swap [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(e): | 524 | [6],[7] | 194 | |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(h): | 188 | [6],[8] | 428 | [6],[8] |
Fair Value, Measurements, Recurring [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(e): | 143 | [6],[7] | 152 | [6],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(h): | $208 | [6],[8] | $243 | [6],[8] |
[1] | Gross unrealized gains and losses are not significant. | |||
[2] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | |||
[3] | Our private equity securities represent investments in the life sciences sector. The increase in 2013 primarily reflects an increased investment in our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |||
[4] | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | |||
[5] | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. | |||
[6] | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 or Level 3 inputs. | |||
[7] | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $14 million and foreign currency forward-exchange contracts with fair values of $65 million as of September 29, 2013; and, foreign currency forward-exchange contracts with fair values of $102 million as of December 31, 2012. | |||
[8] | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $97 million and foreign currency forward-exchange contracts with fair values of $83 million as of September 29, 2013; and, foreign currency swaps with fair values of $129 million and foreign currency forward-exchange contracts with fair values of $141 million as of December 31, 2012. | |||
[9] | Trading securities are held in trust for legacy business acquisition severance benefits. | |||
[10] | Includes $447 million as of September 29, 2013 and $408 million as of December 31, 2012 of money market funds held in trust in connection with the asbestos litigation involving Quigley Company, Inc., a wholly owned subsidiary. |
Financial_Instruments_Assets_a1
Financial Instruments Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Long-term debt, carried at historical proceeds, as adjusted(j), (k) | $31,812,000,000 | [1],[2] | $31,036,000,000 | [1],[2] |
Fair value of long-term debt | 36,400,000,000 | 37,500,000,000 | ||
Asbestos Litigation [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Money market funds held in trust | 447,000,000 | 408,000,000 | ||
Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Instruments used as offsets (assets) | 65,000,000 | 102,000,000 | ||
Instruments used as offsets (liabilities) | 83,000,000 | 141,000,000 | ||
Foreign Exchange Contract [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Instruments used as offsets (assets) | 14,000,000 | ' | ||
Instruments used as offsets (liabilities) | 97,000,000 | 129,000,000 | ||
Foreign Currency Debt Designated As Hedging Instruments Long Term Liability At Fair Value [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Long-term debt, carried at historical proceeds, as adjusted(j), (k) | $697,000,000 | $809,000,000 | ||
Maximum [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Percentage of financial assets and liabilities measured at fair value inputs Level 1 and Level 3 inputs | 1.00% | 1.00% | ||
[1] | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | |||
[2] | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. |
Financial_Instruments_by_Balan
Financial Instruments by Balance Sheet Grouping (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $925 | $947 | ||
Short-term investments | 31,627 | 22,318 | ||
Long-term investments | 15,731 | 14,149 | ||
Taxes and other current assets(a) | 200 | [1] | 296 | [1] |
Taxes and other noncurrent assets(b) | 962 | [2] | 1,086 | [2] |
Total | 49,445 | 38,796 | ||
Liabilities | ' | ' | ||
Short-term borrowings, including current portion of long-term debt | 4,738 | [3],[4] | 6,424 | [3],[4] |
Other current liabilities(c) | 222 | [5] | 330 | [5] |
Long-term debt | 31,812 | [3],[6] | 31,036 | [3],[6] |
Other noncurrent liabilities(d) | 374 | [7] | 374 | [7] |
Total selected financial liabilities | $37,146 | [3] | $38,164 | [3] |
[1] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($35 million), foreign currency swaps ($22 million) and foreign currency forward-exchange contracts ($143 million) and, as of December 31, 2012, include foreign currency swaps ($144 million) and foreign currency forward-exchange contracts ($152 million). | |||
[2] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($460 million) and foreign currency swaps ($502 million) and, as of December 31, 2012, include interest rate swaps ($1.0 billion) and foreign currency swaps ($50 million). | |||
[3] | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | |||
[4] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | |||
[5] | As of September 29, 2013, derivative instruments at fair value include foreign currency swaps ($14 million) and foreign currency forward-exchange contracts ($208 million) and, as of December 31, 2012, include foreign currency swaps ($87 million) and foreign currency forward-exchange contracts ($243 million). | |||
[6] | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. | |||
[7] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($200 million) and foreign currency swaps ($174 million) and, as of December 31, 2012, include interest rate swaps ($33 million) and foreign currency swaps ($341 million). |
Financial_Instruments_by_Balan1
Financial Instruments by Balance Sheet Grouping (Parenthetical) (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Taxes and other current assets(a) | $200 | [1] | $296 | [1] |
Taxes and other noncurrent assets(b) | 962 | [2] | 1,086 | [2] |
Other current liabilities(c) | 222 | [3] | 330 | [3] |
Other noncurrent liabilities(d) | 374 | [4] | 374 | [4] |
Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Taxes and other current assets(a) | 143 | 152 | ||
Other current liabilities(c) | 208 | 243 | ||
Foreign Exchange Contract [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Taxes and other current assets(a) | 22 | 144 | ||
Taxes and other noncurrent assets(b) | 502 | 50 | ||
Other current liabilities(c) | 14 | 87 | ||
Other noncurrent liabilities(d) | 174 | 341 | ||
Interest rate swaps [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Taxes and other current assets(a) | 35 | ' | ||
Taxes and other noncurrent assets(b) | 460 | 1,000 | ||
Other noncurrent liabilities(d) | $200 | $33 | ||
[1] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($35 million), foreign currency swaps ($22 million) and foreign currency forward-exchange contracts ($143 million) and, as of December 31, 2012, include foreign currency swaps ($144 million) and foreign currency forward-exchange contracts ($152 million). | |||
[2] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($460 million) and foreign currency swaps ($502 million) and, as of December 31, 2012, include interest rate swaps ($1.0 billion) and foreign currency swaps ($50 million). | |||
[3] | As of September 29, 2013, derivative instruments at fair value include foreign currency swaps ($14 million) and foreign currency forward-exchange contracts ($208 million) and, as of December 31, 2012, include foreign currency swaps ($87 million) and foreign currency forward-exchange contracts ($243 million). | |||
[4] | As of September 29, 2013, derivative instruments at fair value include interest rate swaps ($200 million) and foreign currency swaps ($174 million) and, as of December 31, 2012, include interest rate swaps ($33 million) and foreign currency swaps ($341 million). |
Financial_Instruments_Investme
Financial Instruments - Investments in Debt Securities (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Held-to-maturity debt securities maturities total | $1,465 | [1],[2] | $1,459 | [1],[2] |
Debt securities maturities within 1 year | 31,010 | ' | ||
Debt securities maturities over 1 to 5 years | 10,944 | ' | ||
Debt securities maturities over 5 to 10 years | 1,157 | ' | ||
Debt securities maturities after 10 years | 888 | ' | ||
Total debt securities | 43,999 | ' | ||
Certificates of deposit and other [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Held-to-maturity debt securities maturities within 1 year | 1,398 | ' | ||
Held-to-maturity debt securities with maturities over 1 to 5 years | 67 | ' | ||
Held-to-maturity debt securities maturities over 5 to 10 years | 0 | ' | ||
Held-to-maturity debt securities maturities over 10 years | 0 | ' | ||
Held-to-maturity debt securities maturities total | 1,465 | ' | ||
Western European, scandinavian and other government debt [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 20,409 | [3] | ' | |
Available-for-sale debt securities maturities over 1 to 5 years | 2,225 | [3] | ' | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | ' | ||
Available-for-sale debt securities maturities over 10 years | 0 | [3] | ' | |
Available-for-sale debt securities maturities total | 22,634 | [3] | ' | |
Corporate debt [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 2,152 | [4] | ' | |
Available-for-sale debt securities maturities over 1 to 5 years | 4,479 | [4] | ' | |
Available-for-sale debt securities maturities over 5 to 10 years | 1,097 | ' | ||
Available-for-sale debt securities maturities over 10 years | 348 | [4] | ' | |
Available-for-sale debt securities maturities total | 8,076 | [4] | ' | |
Western European, Scandinavian, Australia and other government agency debt [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 2,955 | [3] | ' | |
Available-for-sale debt securities maturities over 1 to 5 years | 440 | [3] | ' | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | ' | ||
Available-for-sale debt securities maturities over 10 years | 0 | [3] | ' | |
Available-for-sale debt securities maturities total | 3,395 | ' | ||
Reverse repurchase agreements [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 2,270 | [5] | ' | |
Available-for-sale debt securities maturities over 1 to 5 years | 0 | [4] | ' | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | ' | ||
Available-for-sale debt securities maturities over 10 years | 0 | [4] | ' | |
Available-for-sale debt securities maturities total | 2,270 | ' | ||
Government National Mortgage Association Certificates and Obligations (GNMA) [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 663 | ' | ||
Available-for-sale debt securities maturities over 1 to 5 years | 873 | ' | ||
Available-for-sale debt securities maturities over 5 to 10 years | 11 | ' | ||
Available-for-sale debt securities maturities over 10 years | 524 | ' | ||
Available-for-sale debt securities maturities total | 2,071 | ' | ||
Supranational debt [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 1,086 | [3] | ' | |
Available-for-sale debt securities maturities over 1 to 5 years | 919 | [4] | ' | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | ' | ||
Available-for-sale debt securities maturities over 10 years | 0 | [3] | ' | |
Available-for-sale debt securities maturities total | 2,005 | ' | ||
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 0 | ' | ||
Available-for-sale debt securities maturities over 1 to 5 years | 1,668 | ' | ||
Available-for-sale debt securities maturities over 5 to 10 years | 0 | ' | ||
Available-for-sale debt securities maturities over 10 years | 16 | ' | ||
Available-for-sale debt securities maturities total | 1,684 | ' | ||
U.S. government debt [Member] | ' | ' | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ||
Available-for-sale debt securities maturities within 1 year | 77 | ' | ||
Available-for-sale debt securities maturities over 1 to 5 years | 273 | ' | ||
Available-for-sale debt securities maturities over 5 to 10 years | 49 | ' | ||
Available-for-sale debt securities maturities over 10 years | 0 | ' | ||
Available-for-sale debt securities maturities total | $399 | ' | ||
[1] | Gross unrealized gains and losses are not significant. | |||
[2] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of September 29, 2013 or December 31, 2012. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs, using a market approach. | |||
[3] | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | |||
[4] | Largely issued by above-investment-grade institutions in the financial services sector. | |||
[5] | Involving U.S. and U.K. government securities. |
Financial_Instruments_Narrativ
Financial Instruments - Narrative (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 |
Commercial Paper [Member] | Commercial Paper [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Interest Rate Contract [Member] | Credit Risk Contract [Member] | Derivative Financial Instruments [Member] | |
United Kingdom Pound [Member] | |||||||
Maturing in 2038 [Member] | |||||||
Short - Term Borrowings | ' | ' | ' | ' | ' | ' | ' |
Commercial paper outstanding | $1,300,000,000 | $2,700,000,000 | ' | ' | ' | ' | ' |
Derivative Financial Instruments and Hedging Activities | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | 2,400,000,000 | ' | ' | ' |
Aggregate notional amount of interest rate derivative financial instruments | ' | ' | 41,700,000,000 | ' | 16,500,000,000 | ' | ' |
Credit Risk Derivatives | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of net derivative liabilities | ' | ' | ' | ' | ' | 250,000,000 | ' |
Posted collateral | ' | ' | ' | ' | ' | 221,000,000 | ' |
Additional collateral | ' | ' | ' | ' | ' | 46,000,000 | ' |
Concentration risk maximum exposure | ' | ' | ' | ' | ' | ' | 2,500,000,000 |
Securities received as collateral | ' | ' | ' | ' | ' | ' | $526,000,000 |
Financial_Instruments_LongTerm
Financial Instruments - Long-Term Debt (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 29, 2013 | Sep. 29, 2013 | Jun. 03, 2013 | Dec. 31, 2012 | Jan. 28, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | ||||||||
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Zoetis [Member] | One Point Five Percent Senior Notes, Due 2018 [Member] | Three Point Two Five Percent Senior Notes, Due 2023 [Member] | Point Nine Percent Senior Notes, Due 2017 [Member] | Four Point Three Percent Senior Notes, Due 2043 [Member] | Floating Rate Note, Due 2018 [Member] | Floating Rate Note, Due 2018 [Member] | one point five percent senior notes due June 2018 and point nine percent senior notes due January 2017 [Member] | three percent senior notes due June 2023 and four point three percent notes due June 2043 [Member] | |||||||||
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | ||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Debt Instrument, Face Amount | ' | $4,000,000,000 | [1],[2] | $4,000,000,000 | [1],[2] | ' | ' | $1,000,000,000 | [2] | $1,000,000,000 | [1] | $750,000,000 | [2] | $750,000,000 | [1] | $500,000,000 | ' | ' | ' | |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 3.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Debt Instrument Callable Principal Amount Percentage | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Debt Instrument Callable US Treasury Rate Margin Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.15% | |||||||
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | 1.50% | 3.00% | 0.90% | 4.30% | ' | ' | ' | ' | |||||||
Long-term Debt, Gross | ' | ' | ' | ' | 3,650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Long-term Debt | ' | ' | ' | $2,400,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Derivative, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | |||||||
[1] | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.15% plus, in each case, accrued and unpaid interest. | |||||||||||||||||||
[2] | Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments of principal and interest discounted at the U.S. Treasury rate, plus 0.10% plus, in each case, accrued and unpaid interest. |
Financial_Instruments_LongTerm1
Financial Instruments - Long-Term Debt Outstanding Maturities (Details) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
2014 | $1,259 | ' | ||
2015 | 3,026 | ' | ||
2016 | 4,439 | ' | ||
2017 | 2,653 | ' | ||
After 2017 | 20,435 | ' | ||
Total | $31,812 | [1],[2] | $31,036 | [1],[2] |
[1] | Some carrying amounts include adjustments for discount or premium amortization or for the effect of interest rate swaps designated as hedges. | |||
[2] | Includes foreign currency debt with fair values of $697 million as of September 29, 2013 and $809 million as of December 31, 2012, which are used as hedging instruments. |
Financial_Instruments_Derivati
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | $313 | [1],[2] | $221 | [1],[2] | $64 | [1],[2] | $94 | [1],[2] |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | 313 | [1],[2] | 221 | [1],[2] | 64 | [1],[2] | 89 | [1],[2] |
All other, net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | 5 | [1],[2] |
Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 483 | [1],[2] | 395 | [1],[2] | 565 | [1],[2] | 277 | [1],[2] |
Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | Foreign currency long-term debt [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Non - Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -4 | [1],[2] | -20 | [1],[2] | 93 | [1],[2] | 3 | [1],[2] |
Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -2 | [1],[2] | -40 | [1],[2] | 137 | [1],[2] | 32 | [1],[2] |
Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -1 | 0 | -1 | 0 | ||||
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 489 | [1],[2] | 455 | [1],[2] | 334 | [1],[2] | 237 | [1],[2] |
Other Comprehensive Income (Loss) [Member] | All other, net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 1 | [1],[2] | 0 | [1],[2] | 2 | [1],[2] | 5 | [1],[2] |
Other Income Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -100 | [1],[3],[4] | -191 | [1],[3],[4] | 26 | [1],[3],[4] | -145 | [1],[3],[4] |
Other Income Expense [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[3],[4] | 0 | [1],[3],[4] | -3 | [1],[3],[4] | -2 | [1],[3],[4] |
Other Income Expense [Member] | Net Investment Hedging [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -4 | 0 | -4 | 0 | ||||
Other Income Expense [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -15 | [1],[3],[4] | 10 | [1],[3],[4] | -14 | [1],[3],[4] | -7 | [1],[3],[4] |
Other Income Expense [Member] | Not Designated as Hedging Instrument [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -81 | [1],[3],[4] | -201 | [1],[3],[4] | 47 | [1],[3],[4] | -138 | [1],[3],[4] |
Other Income Expense [Member] | All other, net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | $0 | [1],[3],[4] | $0 | [1],[3],[4] | $0 | [1],[3],[4] | $2 | [1],[3],[4] |
[1] | OID =ther (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income | |||||||
[2] | Amounts presented represent the effective portion of the gain or loss. For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding gains on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive income/(loss)––Foreign currency translation adjustments | |||||||
[3] | Also includes gains and losses attributable to the hedged risk in fair value hedge relationships | |||||||
[4] | There was no significant ineffectiveness for any period presented |
Inventories_Detail
Inventories (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Inventories [Line Items] | ' | ' | ||
Finished goods | $2,471 | $2,254 | ||
Work-in-process | 3,601 | 3,374 | ||
Raw materials and supplies | 410 | 448 | ||
Inventories | 6,482 | 6,076 | ||
Noncurrent inventories not included above(a) | $573 | [1] | $612 | [1] |
[1] | Included in Taxes and other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2012 | $43,661 | |
Derecognition(a) | -292 | [1] |
Other(b) | -969 | [2] |
Balance, September 29, 2013 | 42,400 | |
Primary Care [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2012 | 6,152 | |
Derecognition(a) | 0 | [1] |
Other(b) | -140 | [2] |
Balance, September 29, 2013 | 6,012 | |
Specialty Care And Oncology [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2012 | 16,885 | |
Derecognition(a) | 0 | [1] |
Other(b) | -390 | [2] |
Balance, September 29, 2013 | 16,495 | |
Established Products and Emerging Markets [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2012 | 18,603 | |
Derecognition(a) | -292 | [1] |
Other(b) | -429 | [2] |
Balance, September 29, 2013 | 17,882 | |
Consumer Healthcare [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2012 | 2,021 | |
Derecognition(a) | 0 | [1] |
Other(b) | -10 | [2] |
Balance, September 29, 2013 | $2,011 | |
[1] | Reflects the goodwill derecognized as part of the transfer of certain product rights, which constituted a business, to our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | |
[2] | Primarily reflects the impact of foreign exchange. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | $74,579 | $74,920 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -41,906 | [1] | -38,230 | [1] |
Finite-lived Intangible Assets, less Accumulated Amortization | 32,673 | 36,690 | ||
Total indefinite-lived intangible assets | 7,876 | 8,456 | ||
Intangible assets, gross carrying amount | 82,455 | [1] | 83,376 | [1] |
Identifiable Intangible Assets, less Accumulated Amortization | 40,549 | [1] | 45,146 | [1] |
Indefinite Lived Brands [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Brands | 7,373 | 7,786 | ||
In-Process Research And Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
In-process research and development | 500 | 669 | ||
Trademarks / Tradenames [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Trademarks/tradenames | 3 | 1 | ||
Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 72,025 | 72,349 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -40,432 | -36,895 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | 31,593 | 35,454 | ||
Brands [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 1,657 | 1,657 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -752 | -693 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | 905 | 964 | ||
License Agreements and Other [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 897 | 914 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -722 | -642 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | $175 | $272 | ||
[1] | The decrease is primarily related to amortization, asset impairment charges and the transfer of certain product rights to our equity-method investment in China. For additional information about the asset impairment charges, see Note 4. Other (Income)/Deductions—Net. For additional information about the transfer of certain product rights, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Narrative (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Billions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense for finite-lived intangible assets | $1.10 | $1.20 | $3.60 | $4 |
Indefinite Lived Brands [Member] | Established Products [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 31.00% | ' | 31.00% | ' |
Indefinite Lived Brands [Member] | Consumer Healthcare [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 69.00% | ' | 69.00% | ' |
In-Process Research And Development [Member] | Specialty Care [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 38.00% | ' | 38.00% | ' |
In-Process Research And Development [Member] | Established Products [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 10.00% | ' | 10.00% | ' |
In-Process Research And Development [Member] | Primary Care [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 9.00% | ' | 9.00% | ' |
In-Process Research And Development [Member] | Worldwide Research and Development [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of indefinite-lived intangible asset unamortized costs by segment | 43.00% | ' | 43.00% | ' |
Developed Technology Rights [Member] | Specialty Care [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 68.00% | ' | 68.00% | ' |
Developed Technology Rights [Member] | Established Products [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 19.00% | ' | 19.00% | ' |
Developed Technology Rights [Member] | Primary Care [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 12.00% | ' | 12.00% | ' |
Developed Technology Rights [Member] | Oncology [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 1.00% | ' | 1.00% | ' |
Finite Lived Brands [Member] | Established Products [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 27.00% | ' | 27.00% | ' |
Finite Lived Brands [Member] | Consumer Healthcare [Member] | ' | ' | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Percentage of finite-lived intangible asset amortized cost by segment | 73.00% | ' | 73.00% | ' |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefit Plans - Narrative (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
U.S. Qualified Pension Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Contributions | $5 |
Expected contributions in next fiscal year | 5 |
U.S. Supplemental (Non-Qualified) Pension Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Contributions | 146 |
Expected contributions in next fiscal year | 177 |
International Pension Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Contributions | 246 |
Expected contributions in next fiscal year | 346 |
Postretirement Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Contributions | 178 |
Expected contributions in next fiscal year | $238 |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
U.S. Qualified Pension Plans [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | $75 | [1] | $86 | [1] | $227 | [1] | $272 | [1] |
Interest cost | 166 | [1] | 170 | [1] | 501 | [1] | 528 | [1] |
Expected return on plan assets | -248 | [1] | -247 | [1] | -752 | [1] | -738 | [1] |
Amortization of: | ' | ' | ' | ' | ||||
Actuarial losses | 88 | [1] | 75 | [1] | 267 | [1] | 232 | [1] |
Prior service credits | -2 | [1] | -2 | [1] | -5 | [1] | -8 | [1] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | [1] | 0 | [1] | -1 | [1] | -56 | [1] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 29 | [1] | 31 | [1] | 92 | [1] | 113 | [1] |
Special termination benefits | 0 | [1] | 1 | [1] | 0 | [1] | 8 | [1] |
Net periodic benefit costs | 108 | [1] | 114 | [1] | 329 | [1] | 351 | [1] |
U.S. Supplemental (Non-Qualified) Pension Plans [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 7 | [2] | 8 | [2] | 20 | [2] | 27 | [2] |
Interest cost | 26 | [2] | 15 | [2] | 53 | [2] | 47 | [2] |
Expected return on plan assets | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Amortization of: | ' | ' | ' | ' | ||||
Actuarial losses | 11 | [2] | 10 | [2] | 38 | [2] | 31 | [2] |
Prior service credits | -1 | -2 | -2 | [2] | -3 | [2] | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | [2] | 0 | [2] | 0 | [2] | -8 | [2] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 7 | [2] | 3 | [2] | 35 | [2] | 21 | [2] |
Special termination benefits | 0 | [2] | 8 | [2] | 0 | [2] | 23 | [2] |
Net periodic benefit costs | 50 | [2] | 42 | [2] | 144 | [2] | 138 | [2] |
International Pension Plans [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 50 | [3] | 50 | [3] | 155 | [3] | 151 | [3] |
Interest cost | 92 | [3] | 97 | [3] | 279 | [3] | 297 | [3] |
Expected return on plan assets | -99 | [3] | -103 | [3] | -301 | [3] | -314 | [3] |
Amortization of: | ' | ' | ' | ' | ||||
Actuarial losses | 27 | [3] | 29 | [3] | 99 | [3] | 63 | [3] |
Prior service credits | -2 | [3] | -3 | [3] | -5 | [3] | -6 | [3] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | -6 | [3] | 0 | [3] | -6 | [3] | -9 | [3] |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 9 | [3] | 2 | [3] | 14 | [3] | 4 | [3] |
Special termination benefits | 1 | [3] | 0 | [3] | 3 | [3] | 3 | [3] |
Net periodic benefit costs | 72 | [3] | 72 | [3] | 238 | [3] | 189 | [3] |
Postretirement Plans [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 15 | 16 | 46 | 51 | ||||
Interest cost | 42 | 46 | 125 | 137 | ||||
Expected return on plan assets | -14 | -12 | -41 | -35 | ||||
Amortization of: | ' | ' | ' | ' | ||||
Actuarial losses | 11 | 8 | 34 | 25 | ||||
Prior service credits | -11 | -13 | -33 | -37 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | -3 | -9 | -26 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 0 | 0 | 0 | ||||
Special termination benefits | 0 | 1 | 0 | 5 | ||||
Net periodic benefit costs | $43 | $43 | $122 | $120 | ||||
[1] | The decrease in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. qualified plans was primarily driven by lower service cost resulting from the decision in 2012 to freeze the defined benefit plans in the U.S. and Puerto Rico, lower settlement activity and greater expected return on plan assets resulting from a higher plan asset base, partially offset by the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico. Also, the decrease in the discount rate resulted in lower interest costs, as well as an increase in the amounts amortized for actuarial losses. | |||||||
[2] | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our U.S. supplemental (non-qualified) pension plans was primarily driven by higher settlement activity, an increase in the amounts amortized for actuarial losses resulting from the decrease in the discount rate and the curtailment gain in the second quarter of 2012 resulting from the decision to freeze the defined benefit plans in the U.S. and Puerto Rico, partially offset by special termination benefits in 2012. | |||||||
[3] | The increase in net periodic benefit costs for the nine months ended September 29, 2013, compared to the nine months ended September 30, 2012, for our international pension plans was primarily driven by an increase in the amounts amortized for actuarial losses resulting from decreases in discount rates and higher settlement activity. |
Earnings_Per_Common_Share_Attr2
Earnings Per Common Share Attributable to Common Shareholders - Diluted Numerator (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
EPS Numerator-Diluted | ' | ' | ' | ' |
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $2,582 | $2,983 | $8,754 | $7,521 |
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 11 | 225 | 10,680 | 734 |
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $2,593 | $3,208 | $19,434 | $8,255 |
Earnings_Per_Common_Share_Attr3
Earnings Per Common Share Attributable to Common Shareholders - Basic Numerator (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
EPS Numerator-Basic | ' | ' | ' | ' | ||||
Income from continuing operations | $2,588 | $2,989 | $8,779 | $7,543 | ||||
Less: Net income attributable to noncontrolling interests | 6 | 6 | 25 | 22 | ||||
Income from continuing operations attributable to Pfizer Inc. | 2,582 | 2,983 | 8,754 | 7,521 | ||||
Less: Preferred stock dividends––net of tax | 0 | 1 | 1 | 1 | ||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,582 | 2,982 | 8,753 | 7,520 | ||||
Discontinued operations––net of tax | 11 | 225 | 10,719 | 734 | ||||
Less: Discontinued operations––net of tax, attributable to noncontrolling interests | 0 | 0 | 39 | 0 | ||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 11 | 225 | 10,680 | 734 | ||||
Net income attributable to Pfizer Inc. common shareholders | $2,593 | $3,207 | $19,433 | $8,254 | ||||
EPS Denominator | ' | ' | ' | ' | ||||
Weighted-average number of common shares outstanding––Basic | 6,581 | 7,436 | 6,938 | 7,483 | ||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 75 | 72 | 78 | 67 | ||||
Weighted-average number of common shares outstanding––Diluted | 6,656 | 7,508 | 7,016 | 7,550 | ||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | [1] | 180 | [1] | 43 | [1] | 180 | [1] |
[1] | These common stock equivalents were outstanding for the three and nine months ended September 29, 2013 and September 30, 2012, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||
Oct. 31, 2012 | Sep. 29, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Nov. 30, 2012 | Mar. 31, 2010 | Jan. 31, 2011 | Dec. 31, 2009 | Jun. 30, 2010 | Jun. 30, 2013 | 31-May-12 | Aug. 31, 2011 | Mar. 31, 2009 | Feb. 28, 2013 | Feb. 28, 2013 | Mar. 31, 2013 | Jan. 31, 2011 | Jun. 30, 2013 | Mar. 31, 2010 | Dec. 31, 2002 | Aug. 31, 2011 | Sep. 29, 2013 | Aug. 31, 2004 | Sep. 29, 2013 | Jan. 31, 2011 | Nov. 30, 2010 | Dec. 31, 2008 | Oct. 31, 2010 | Dec. 31, 2005 | Mar. 31, 2005 | Sep. 26, 2004 | Dec. 31, 2012 | Dec. 31, 2010 | Jun. 30, 2013 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |||||
Actions | Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries Ltd. [Member] | Pfizer - Neurontin Product [Member] | Wyeth - Protonix [Member] | Mylan Pharmaceuticals Inc. [Member] | Several Generic Manufacturers [Member] | Several Generic Manufacturers [Member] | Several Generic Manufacturers [Member] | Several Generic Manufacturers [Member] | Apotex Inc. and Apotex Corp. [Member] | Lupin Ltd and Lupin Pharmaceuticals, Inc. [Member] | Teva USA, Mylan Pharmaceuticals Inc., Watson, Lupin Pharmaceuticals USA, Inc., Apotex Corp. and Apotex Inc [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | Pfizer - Bapineuzumab [Member] | Pfizer - Bapineuzumab [Member] | Pfizer - Rebif [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Due Second Half of Two Thousand Thirteen [Member] | Due Second Half of Two Thousand Thirteen [Member] | Due October Two Thousand Fourteen [Member] [Member] | Due Two Thousand Thirteen [Member] | Takeda [Member] | |||||||||||
Actions | Actions | Patents | Patents | Patents | Patents | Patents | Patents | test_cases | test_cases | Hormone Replacement Therapy [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | American Optical Corp subsidiary of Warner-Lambert [Member] | Pfizer - Neurontin Product [Member] | Pfizer - Neurontin Product [Member] | IREF -Trade Secrets Action [Member] | Apotex Inc. and Apotex Corp., Mylan Pharmaceuticals Inc. and Mylan Inc. [Member] | March 2005 proposed settlement [Member] | March 2005 proposed settlement [Member] | March 2005 proposed settlement [Member] | Court settlement rejection and Pfizer motion to appeal [Member] | Court settlement rejection and Pfizer motion to appeal [Member] | March 2011 proposed settlement [Member] | March 2011 proposed settlement [Member] | March 2011 proposed settlement [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | Teva USA and Teva Pharmaceutical Industries, Sun Pharmaceutical Advanced Research Centre Ltd. and Sun Pharmaceutical Industries Ltd. [Member] | |||||||||||||||||||
Claim | Claim | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | Quigley Co, Inc., a wholly owned subsidiary [Member] | ||||||||||||||||||||||||||||||||||||||
Claimant | |||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Period of Exclusivity | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | '6 months | '6 months | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notice of appeal and related motion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'October 2010 | ' | ' | ' | 'October 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of patents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | 2 | 3 | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of other patents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of Claims, Infringement of Formulation Process | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Product litigation charge, pre-tax | ' | $1,000,000 | [1] | ' | $727,000,000 | [1] | ($94,000,000) | [1] | $2,014,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $369,000,000 | ' | $1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Product litigation charge, after-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,000,000 | ' | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
The minimum percentage of votes needed from claimants to approve the proposed bankruptcy reorganization plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of claimants that agreed to 2004 proposed settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss Contingency Proposed Settlement Amount Offered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 430,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss Contingency Claims Payment Amount For Qualified Claimants Second Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ||||
Loss Contingency Settled Payment Of Legal Costs Of Plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ||||
Loss Contingency Claims Payment Amount For Qualified Claimants First Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000,000 | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ||||
Number of Ad Hoc Committee claimants agreeing to the company's proposed settlement offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ||||
Agreed upon amount of assets (cash and non-cash) to be contributed to a special purpose trust created to pay claimants, if Quigley's proposed reorganization plan is approved by the court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,080,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Insurance Settlement Gross Recovery | ' | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 405,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Insurance settlement collection period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of claims seeking damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | 66,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of Multiple-Plaintiff Actions | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unresolved actions, years outstanding | ' | '5 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Cumulative percentage of actions settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Litigation settlement expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Estimated minimum cost to resolve outstanding actions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Damages awarded by the court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,400,000 | 65,400,000 | 38,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Treble damages amount awarded, under appeal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of actions | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of test cases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of additional test cases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of test cases with civil actions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Environmental complaint and penalty demand, environmental protection agency | 216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Litigation Settlement, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000,000 | $660,000,000 | $800,000,000 | $550,000,000 | ' | ||||
Litigation Settlement, Percentage of Settlement Proceeds | ' | ' | 64.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Litigation Settlement, Counterparty Percentage of Settlement Proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.00% | ||||
Contract Extension Agreement Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. |
Segment_Geographic_and_Other_R2
Segment, Geographic and Other Revenue Information - Narrative (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Dec. 31, 2012 |
Operating_segments | ||
Segment Reporting Information [Line Items] | ' | ' |
Number of operating segments (in operating segments) | 4 | ' |
Total assets | $175,521 | $185,798 |
Segment_Geographic_and_Other_R3
Segment, Geographic and Other Revenue Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $12,643 | $12,953 | $38,026 | $40,766 | ||||
R&D Expenses | 1,627 | [1] | 1,887 | [1] | 4,867 | [1] | 5,461 | [1] |
Earnings(a) | 3,573 | [2] | 2,806 | [2] | 12,655 | [2] | 9,165 | [2] |
Primary Care [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 3,259 | [3] | 3,610 | [3] | 9,830 | [3] | 11,725 | [3] |
R&D Expenses | 245 | [3] | 247 | [3] | 682 | [3] | 739 | [3] |
Earnings(a) | 1,917 | [2],[3] | 2,112 | [2],[3] | 6,002 | [2],[3] | 7,399 | [2],[3] |
Specialty Care And Oncology [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 3,756 | 3,735 | 11,069 | 11,423 | ||||
R&D Expenses | 326 | 345 | 1,047 | 1,044 | ||||
Earnings(a) | 2,660 | [2] | 2,630 | [2] | 7,670 | [2] | 7,883 | [2] |
Established Products and Emerging Markets [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 4,727 | [4] | 4,772 | [4] | 14,499 | [4] | 15,173 | [4] |
R&D Expenses | 95 | [4] | 84 | [4] | 264 | [4] | 223 | [4] |
Earnings(a) | 2,680 | [2],[4] | 2,673 | [2],[4] | 8,303 | [2],[4] | 8,926 | [2],[4] |
Reportable Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 11,742 | 12,117 | 35,398 | 38,321 | ||||
R&D Expenses | 666 | 676 | 1,993 | 2,006 | ||||
Earnings(a) | 7,257 | [2] | 7,415 | [2] | 21,975 | [2] | 24,208 | [2] |
Consumer Healthcare and other business activities [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 834 | [5] | 836 | [5] | 2,561 | [5] | 2,445 | [5] |
R&D Expenses | 734 | [5] | 933 | [5] | 2,113 | [5] | 2,322 | [5] |
Earnings(a) | -491 | [2],[5] | -693 | [2],[5] | -1,410 | [2],[5] | -1,721 | [2],[5] |
Corporate [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | [6] | 0 | [6] | 0 | [6] | 0 | [6] |
R&D Expenses | 220 | [6] | 217 | [6] | 639 | [6] | 705 | [6] |
Earnings(a) | -1,369 | [2],[6] | -1,359 | [2],[6] | -4,194 | [2],[6] | -4,700 | [2],[6] |
Purchase Accounting Adjustments [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | [7] | 0 | [7] | 0 | [7] | 0 | [7] |
R&D Expenses | 1 | [7] | -1 | [7] | -1 | [7] | -4 | [7] |
Earnings(a) | -960 | [2],[7] | -1,127 | [2],[7] | -3,287 | [2],[7] | -3,713 | [2],[7] |
Acquisition-related Costs [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | [8] | 0 | [8] | 0 | [8] | 0 | [8] |
R&D Expenses | 0 | [8] | 0 | [8] | 0 | [8] | 5 | [8] |
Earnings(a) | -61 | [2],[8] | -237 | [2],[8] | -264 | [2],[8] | -638 | [2],[8] |
Certain significant items [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 67 | [9] | 0 | [9] | 67 | [9] | 0 | [9] |
R&D Expenses | 1 | [9] | 47 | [9] | 104 | [9] | 386 | [9] |
Earnings(a) | -744 | [2],[9] | -1,052 | [2],[9] | 180 | [2],[9] | -3,784 | [2],[9] |
Other unallocated [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | [10] | 0 | [10] | 0 | [10] | 0 | [10] |
R&D Expenses | 5 | [10] | 15 | [10] | 19 | [10] | 41 | [10] |
Earnings(a) | ($59) | [10],[2] | ($141) | [10],[2] | ($345) | [10],[2] | ($487) | [10],[2] |
[1] | Excludes amortization of intangible assets, except as disclosed in Note 9B. Goodwill and Other Intangible Assets: Other Intangible Assets. | |||||||
[2] | Income from continuing operations before provision for taxes on income. | |||||||
[3] | Revenues and Earnings from the Primary Care segment decreased in the three and nine months ended September 29, 2013 as compared to the prior year, and Earnings as a percentage of revenues for the nine months ended September 29, 2013 also declined, primarily due to the loss of exclusivity for Lipitor in developed Europe and Australia; the subsequent shift in the reporting of Lipitor in those markets to the Established Products business unit; the losses of exclusivity of certain other products in various markets; lower Alliance revenues from Spiriva due to the ongoing expiration of the Spiriva collaboration in certain countries; and the termination of the co-promotion agreement for Aricept in Japan in December 2012. Earnings as a percentage of revenues increased for the three months ended September 29, 2013 primarily due to market growth of Lyrica as well as mid-year price increases. | |||||||
[4] | Revenues from the Established Products and Emerging Markets segment decreased in the three and nine months ended September 29, 2013, and Earnings from the Established Products and Emerging Markets segment decreased in the nine months ended September 29, 2013, as compared to the prior year, primarily due to the continued erosion of branded Lipitor in the U.S. and Japan, partially offset by the addition of products in certain markets that shifted to the Established Products unit from other business units beginning January 1, 2013 and strong volume growth in China. Earnings as a percentage of revenue increased in the three months ended September 29, 2013 as compared to the prior year due to Lipitor and Norvasc growth in China. Earnings as a percentage of revenue decreased in the nine months ended September 29, 2013 as compared to the prior year due to the change in the mix of products. | |||||||
[5] | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the R&D costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. | |||||||
[6] | Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities, and for Earnings includes, among other things, administration expenses, interest income/(expense) and certain compensation and other costs not charged to our operating segments. | |||||||
[7] | Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment. | |||||||
[8] | Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives. | |||||||
[9] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the third quarter and first nine months of 2013, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures.For Earnings in the third quarter of 2013, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (ii) certain asset impairments and related charges of $440 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $262 million, (iv) other charges of $43 million and (v) costs associated with a patent litigation settlement of $9 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the third quarter of 2012, certain significant items includes: (i) charges for certain legal matters of $723 million, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $263 million, (iii) costs associated with the separation of Zoetis of $32 million, (iv) certain asset impairment charges of $17 million and (v) other charges of $17 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) the gain associated with the transfer of certain product rights to our equity-method investment in China of $459 million, (iii) net credits for certain legal matters of $99 million, (iv) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (v) certain asset impairments and related charges of $929 million, (vi) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $662 million, (vii) other charges of $121 million and (viii) costs associated with the separation of Zoetis of $18 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2012, certain significant items includes: (i) charges for certain legal matters of $2.0 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.1 billion, (iii) certain asset impairment charges of $506 million, (iv) costs associated with the separation of Zoetis of $93 million and (v) other charges of $55 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs. | |||||||
[10] | Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. |
Segment_Geographic_and_Other_R4
Segment, Geographic and Other Revenue Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Jul. 01, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | ||||||||||||
Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Other unallocated [Member] | Other unallocated [Member] | Other unallocated [Member] | Other unallocated [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | |||||||||||||||||
Earnings [Member] | Earnings [Member] | Earnings [Member] | Earnings [Member] | Pfizer [Member] | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Restructuring charges and implementation costs associated with cost-reduction initiatives, excluding acquisition-related costs | ' | ' | ' | ' | ' | ' | ' | ' | $262 | $263 | $662 | $1,100 | ' | ' | ' | ' | ' | ||||||||||||
Gain related to litigation settlement | -9 | [1] | 0 | [1] | 1,342 | [1] | 0 | [1] | ' | ' | ' | ' | 0 | ' | 1,300 | ' | ' | ' | ' | ' | ' | ||||||||
Other legal matters, net(c) | 1 | [2] | 727 | [2] | -94 | [2] | 2,014 | [2] | ' | ' | ' | ' | ' | 723 | -99 | 2,000 | ' | ' | ' | ' | ' | ||||||||
Revenues | 12,643 | 12,953 | 38,026 | 40,766 | 67 | [3] | 0 | [3] | 67 | [3] | 0 | [3] | ' | ' | 10 | ' | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | ' | ||||
Certain asset impairments and related charges(e) | 443 | [5] | 14 | [5] | 968 | [5] | 524 | [5] | ' | ' | ' | ' | 440 | 17 | 929 | 506 | ' | ' | ' | ' | ' | ||||||||
Gains (Losses) on Sales of Assets | 0 | [6] | 0 | [6] | -459 | [6] | 0 | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -459 | ||||||||
Business separation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 18 | 93 | ' | ' | ' | ' | ' | ||||||||||||
Other charges | ($120) | [7] | $62 | [7] | $24 | [7] | $147 | [7] | ' | ' | ' | ' | $43 | $17 | $121 | $55 | ' | ' | ' | ' | ' | ||||||||
[1] | In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. (Teva) and Sun Pharmaceutical Industries Ltd. (Sun) for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States. As of September 29, 2013, the remaining receivables from Teva are included in Taxes and other current assets ($474 million) and Taxes and other noncurrent assets ($128 million). For additional information, see Note 12A5. Commitments and Contingencies: Legal Proceedings––Certain Matters Resolved During the First Nine Months of 2013. | ||||||||||||||||||||||||||||
[2] | In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge relating to the resolution of an investigation by the U.S. Department of Justice (DOJ) into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. For additional information, see Note 12. Commitments and Contingencies. | ||||||||||||||||||||||||||||
[3] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the third quarter and first nine months of 2013, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures.For Earnings in the third quarter of 2013, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (ii) certain asset impairments and related charges of $440 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $262 million, (iv) other charges of $43 million and (v) costs associated with a patent litigation settlement of $9 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the third quarter of 2012, certain significant items includes: (i) charges for certain legal matters of $723 million, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $263 million, (iii) costs associated with the separation of Zoetis of $32 million, (iv) certain asset impairment charges of $17 million and (v) other charges of $17 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) the gain associated with the transfer of certain product rights to our equity-method investment in China of $459 million, (iii) net credits for certain legal matters of $99 million, (iv) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (v) certain asset impairments and related charges of $929 million, (vi) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $662 million, (vii) other charges of $121 million and (viii) costs associated with the separation of Zoetis of $18 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2012, certain significant items includes: (i) charges for certain legal matters of $2.0 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.1 billion, (iii) certain asset impairment charges of $506 million, (iv) costs associated with the separation of Zoetis of $93 million and (v) other charges of $55 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs. | ||||||||||||||||||||||||||||
[4] | Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. | ||||||||||||||||||||||||||||
[5] | In the third quarter of 2013, includes intangible asset impairment charges of $185 million, primarily reflecting (i) $95 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax, and (ii) $90 million related to one IPR&D compound (full write-off), as well as a loss of $223 million related to an option to acquire the remaining interest in Laboratório Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (an equity-method investment). In addition, the third quarter of 2013 includes an impairment charge of approximately $32 million related to the aforementioned equity-method investment in Brazil.In the first nine months of 2013, includes intangible asset impairment charges of $674 million, primarily reflecting (i) $394 million of developed technology rights (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth, (ii) $171 million related to three IPR&D compounds, and (iii) $109 million of indefinite lived brands, primarily related to our biopharmaceutical indefinite-lived brand, Xanax. The intangible asset impairment charges for 2013 reflect, among other things, updated commercial forecasts and, with regard to IPR&D, the impact of new scientific findings. The intangible asset impairment charges for the first nine months of 2013 are associated with the following: Specialty Care ($394 million), Established Products ($185 million), Worldwide Research and Development ($43 million), Primary Care ($38 million), and Consumer Healthcare ($14 million). In addition, the first nine months of 2013 include a loss of $223 million related to an option to acquire the remaining interest Teuto, a 40%-owned generics company in Brazil (an equity-method investment), an impairment charge of approximately $39 million for certain private company investments and an impairment charge of $32 million related to the aforementioned equity-method investment in Brazil, Teuto. In the first nine months of 2012, includes intangible asset impairment charges of $457 million reflecting (i) $314 million of IPR&D, substantially all related to assets that targeted autoimmune and inflammatory diseases (full write-off), (ii) $45 million related to our Consumer Healthcare indefinite-lived brand, Robitussin, a cough suppressant, and (iii) $98 million related to three developed technology rights. The intangible asset impairment charges for 2012 reflect, among other things, the impact of new scientific findings, updated commercial forecasts and an increased competitive environment. The impairment charges for the first nine months of 2012 are associated with the following: Worldwide Research and Development ($297 million); Consumer Healthcare ($45 million); Established Products ($44 million); Primary Care ($52 million) and Specialty Care ($19 million). In addition, the first nine months of 2012 includes charges of approximately $67 million for certain investments. These investment impairment charges reflect the difficult global economic environment. | ||||||||||||||||||||||||||||
[6] | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||||||||||
[7] | In the third quarter and first nine months of 2013, includes the gain of approximately $128 million and $109 million, respectively, reflecting the change in the fair value of the contingent consideration associated with our acquisition of NextWave. For additional information, see Note 2A. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Acquisitions. |
Segment_Geographic_and_Other_R5
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues | $12,643 | $12,953 | $38,026 | $40,766 | ||||
Percentage Change in Revenue | -2.00% | ' | -7.00% | ' | ||||
United States [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues | 5,186 | 5,174 | 15,190 | 16,011 | ||||
Percentage Change in Revenue | 0.00% | ' | -5.00% | ' | ||||
Developed Europe [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues | 2,785 | [1] | 2,804 | [1] | 8,502 | [1] | 9,433 | [1] |
Percentage Change in Revenue | -1.00% | [1] | ' | -10.00% | [1] | ' | ||
Developed Rest Of World [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues | 1,992 | [2] | 2,386 | [2] | 6,139 | [2] | 7,383 | [2] |
Percentage Change in Revenue | -17.00% | [2] | ' | -17.00% | [2] | ' | ||
Emerging Markets [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues | $2,680 | [3] | $2,589 | [3] | $8,195 | [3] | $7,939 | [3] |
Percentage Change in Revenue | 4.00% | [3] | ' | 3.00% | [3] | ' | ||
[1] | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.1 billion and $2.1 billion in both the third quarter of 2013 and 2012, and $6.4 billion and $7.1 billion in the first nine months of 2013 and 2012, respectively. | |||||||
[2] | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | |||||||
[3] | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. |
Segment_Geographic_and_Other_R6
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Jul. 01, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||||||||||
Developed Europe [Member] | Developed Europe [Member] | Developed Europe [Member] | Developed Europe [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Euro Denominated [Member] | Euro Denominated [Member] | Euro Denominated [Member] | Euro Denominated [Member] | Earnings [Member] | Earnings [Member] | Earnings [Member] | Earnings [Member] | |||||||||||||||||
Developed Europe [Member] | Developed Europe [Member] | Developed Europe [Member] | Developed Europe [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | Certain significant items [Member] | |||||||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Other Nonoperating Income (Expense) | $120 | [1] | ($62) | [1] | ($24) | [1] | ($147) | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($43) | ($17) | ($121) | ($55) | ||||||||
Revenues | $12,643 | $12,953 | $38,026 | $40,766 | $2,785 | [2] | $2,804 | [2] | $8,502 | [2] | $9,433 | [2] | $67 | [3] | $0 | [3] | $67 | [3] | $0 | [3] | $2,100 | $2,100 | $6,400 | $7,100 | ' | ' | $10 | ' | ||||
[1] | In the third quarter and first nine months of 2013, includes the gain of approximately $128 million and $109 million, respectively, reflecting the change in the fair value of the contingent consideration associated with our acquisition of NextWave. For additional information, see Note 2A. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Acquisitions. | |||||||||||||||||||||||||||||||
[2] | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.1 billion and $2.1 billion in both the third quarter of 2013 and 2012, and $6.4 billion and $7.1 billion in the first nine months of 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
[3] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the third quarter and first nine months of 2013, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2B. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Divestitures.For Earnings in the third quarter of 2013, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (ii) certain asset impairments and related charges of $440 million, (iii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $262 million, (iv) other charges of $43 million and (v) costs associated with a patent litigation settlement of $9 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the third quarter of 2012, certain significant items includes: (i) charges for certain legal matters of $723 million, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $263 million, (iii) costs associated with the separation of Zoetis of $32 million, (iv) certain asset impairment charges of $17 million and (v) other charges of $17 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) the gain associated with the transfer of certain product rights to our equity-method investment in China of $459 million, (iii) net credits for certain legal matters of $99 million, (iv) income related to our transitional manufacturing and supply agreements with Zoetis of $10 million, (v) certain asset impairments and related charges of $929 million, (vi) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $662 million, (vii) other charges of $121 million and (viii) costs associated with the separation of Zoetis of $18 million. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For Earnings in the first nine months of 2012, certain significant items includes: (i) charges for certain legal matters of $2.0 billion, (ii) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.1 billion, (iii) certain asset impairment charges of $506 million, (iv) costs associated with the separation of Zoetis of $93 million and (v) other charges of $55 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other (Income)/Deductions––Net.For R&D in all periods presented, certain significant items primarily reflect additional depreciation––asset restructuring and implementation costs. |
Segment_Geographic_and_Other_R7
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | $12,643 | $12,953 | $38,026 | $40,766 | ||||
Biopharmaceutical [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 11,742 | 12,117 | 35,398 | 38,321 | ||||
Biopharmaceutical [Member] | Lyrica [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 1,135 | 1,036 | 3,335 | 3,026 | ||||
Biopharmaceutical [Member] | Prevnar/ Prevenar family [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 959 | 949 | 2,855 | 3,028 | ||||
Biopharmaceutical [Member] | Enbrel (Outside the U.S. and Canada) [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 932 | 893 | 2,769 | 2,780 | ||||
Biopharmaceutical [Member] | Celebrex [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 752 | 676 | 2,120 | 1,969 | ||||
Biopharmaceutical [Member] | Lipitor [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 533 | [1] | 749 | [1] | 1,704 | [1] | 3,364 | [1] |
Biopharmaceutical [Member] | Viagra [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 460 | 517 | 1,405 | 1,498 | ||||
Biopharmaceutical [Member] | Zyvox [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 319 | 328 | 1,007 | 996 | ||||
Biopharmaceutical [Member] | Norvasc [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 303 | 319 | 917 | 1,001 | ||||
Biopharmaceutical [Member] | Sutent [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 278 | 294 | 892 | 913 | ||||
Biopharmaceutical [Member] | Premarin family [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 276 | 262 | 793 | 797 | ||||
Biopharmaceutical [Member] | BeneFIX [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 213 | 201 | 619 | 577 | ||||
Biopharmaceutical [Member] | Genotropin [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 183 | 212 | 570 | 619 | ||||
Biopharmaceutical [Member] | Vfend [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 193 | 187 | 557 | 543 | ||||
Biopharmaceutical [Member] | Pristiq [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 173 | 152 | 516 | 461 | ||||
Biopharmaceutical [Member] | Chantix / Champix [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 154 | 146 | 486 | 496 | ||||
Biopharmaceutical [Member] | Detrol / Detrol LA [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 131 | 176 | 437 | 576 | ||||
Biopharmaceutical [Member] | Xalatan Xalacom [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 140 | 181 | 434 | 617 | ||||
Biopharmaceutical [Member] | ReFacto AF/ Xyntha [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 148 | 150 | 433 | 420 | ||||
Biopharmaceutical [Member] | Medrol [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 107 | 113 | 343 | 388 | ||||
Biopharmaceutical [Member] | Zoloft [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 116 | 129 | 341 | 398 | ||||
Biopharmaceutical [Member] | Effexor [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 96 | 107 | 326 | 342 | ||||
Biopharmaceutical [Member] | Zosyn / Tazocin [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 104 | 109 | 293 | 378 | ||||
Biopharmaceutical [Member] | Zithromax / Zmax [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 84 | 89 | 283 | 318 | ||||
Biopharmaceutical [Member] | Tygacil [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 92 | 82 | 271 | 249 | ||||
Biopharmaceutical [Member] | Relpax [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 83 | 92 | 263 | 266 | ||||
Biopharmaceutical [Member] | Fragmin [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 83 | 91 | 263 | 283 | ||||
Biopharmaceutical [Member] | Rapamune [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 91 | 92 | 261 | 259 | ||||
Biopharmaceutical [Member] | EpiPen [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 85 | 67 | 230 | 217 | ||||
Biopharmaceutical [Member] | Revatio [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 75 | 135 | 225 | 414 | ||||
Biopharmaceutical [Member] | Sulperazon [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 78 | 62 | 222 | 191 | ||||
Biopharmaceutical [Member] | Cardura [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 70 | 79 | 221 | 254 | ||||
Biopharmaceutical [Member] | Inlyta [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 83 | 29 | 217 | 53 | ||||
Biopharmaceutical [Member] | Xanax XR [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 69 | 66 | 204 | 203 | ||||
Biopharmaceutical [Member] | Xalkori [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 73 | 38 | 193 | 78 | ||||
Biopharmaceutical [Member] | Toviaz [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 57 | 52 | 174 | 150 | ||||
Biopharmaceutical [Member] | Aricept [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 52 | [2] | 71 | [2] | 173 | [2] | 249 | [2] |
Biopharmaceutical [Member] | Caduet [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 52 | 68 | 164 | 191 | ||||
Biopharmaceutical [Member] | Inspra [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 53 | 51 | 164 | 156 | ||||
Biopharmaceutical [Member] | Diflucan [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 59 | 61 | 164 | 185 | ||||
Biopharmaceutical [Member] | Somavert [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 56 | 49 | 159 | 143 | ||||
Biopharmaceutical [Member] | Neurontin [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 50 | 52 | 158 | 172 | ||||
Biopharmaceutical [Member] | Dalacin Cleocin [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 50 | 74 | 149 | 176 | ||||
Biopharmaceutical [Member] | Xeljanz [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 35 | 0 | 68 | 0 | ||||
Biopharmaceutical [Member] | Alliance revenues [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 684 | [3] | 879 | [3] | 2,187 | [3] | 2,577 | [3] |
Biopharmaceutical [Member] | All Other Biopharmaceutical Products [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 1,923 | 1,952 | 5,833 | 6,350 | ||||
Other products [Member] | Consumer Healthcare [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | 788 | 780 | 2,399 | 2,276 | ||||
Other products [Member] | Pfizer Centre Source And Other [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Revenues | $113 | $56 | $229 | $169 | ||||
[1] | Represents direct sales under license agreement with Eisai Co., Ltd. | |||||||
[2] | Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis. | |||||||
[3] | Other represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Segment_Geographic_and_Other_R8
Segment, Geographic and Other Revenue Information - Revenues By Products (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gains (Losses) on Sales of Assets | $0 | [1] | $0 | [1] | $459 | [1] | $0 | [1] |
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Pfizer [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Gains (Losses) on Sales of Assets | ' | ' | $459 | ' | ||||
[1] | In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our equity-method investment in China. For additional information, see Note 2D. Acquisitions, Divestitures, Collaborative Arrangement and Equity-Method Investments: Equity-Method Investments. |