Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2017 | Aug. 07, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PFIZER INC | |
Entity Central Index Key | 78,003 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | PFE | |
Entity Common Stock, Shares Outstanding | 5,947,349,054 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Income Statement [Abstract] | |||||||
Revenues | [1] | $ 12,896 | $ 13,147 | $ 25,675 | [2] | $ 26,152 | [2] |
Costs and expenses: | |||||||
Cost of sales | [1],[2] | 2,663 | 3,174 | 5,134 | 6,026 | ||
Selling, informational and administrative expenses | [1],[2] | 3,425 | 3,471 | 6,733 | 6,856 | ||
Research and development expenses | [1],[2] | 1,780 | 1,748 | 3,487 | 3,478 | ||
Amortization of intangible assets | [1] | 1,208 | 961 | 2,394 | 1,966 | ||
Restructuring charges and certain acquisition-related costs | [1] | 70 | 316 | 228 | 457 | ||
Other (income)/deductions––net | [1] | (66) | 1,068 | (68) | 1,398 | ||
Income from continuing operations before provision for taxes on income | [1],[3] | 3,815 | 2,410 | 7,767 | 5,971 | ||
Provision for taxes on income | [1],[4] | 739 | 347 | 1,560 | 861 | ||
Income from continuing operations | [1],[4] | 3,077 | 2,062 | 6,207 | 5,110 | ||
Discontinued operations––net of tax | [1] | 2 | 1 | 1 | 1 | ||
Net income before allocation to noncontrolling interests | [1],[4],[5],[6] | 3,078 | 2,063 | 6,208 | 5,111 | ||
Less: Net income attributable to noncontrolling interests | [1] | 5 | 16 | 14 | 25 | ||
Net income attributable to Pfizer Inc. | [1],[4] | $ 3,073 | $ 2,047 | $ 6,194 | $ 5,085 | ||
Earnings per common share––basic: | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | [1],[4] | $ 0.52 | $ 0.34 | $ 1.04 | $ 0.83 | ||
Discontinued operations––net of tax (in dollars per share) | [1],[4] | 0 | 0 | 0 | 0 | ||
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | [1],[4] | 0.52 | 0.34 | 1.04 | 0.83 | ||
Earnings per common share––diluted: | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | [1],[4] | 0.51 | 0.33 | 1.02 | 0.82 | ||
Discontinued operations––net of tax (in dollars per share) | [1],[4] | 0 | 0 | 0 | 0 | ||
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | [1],[4] | $ 0.51 | $ 0.33 | $ 1.02 | $ 0.82 | ||
Weighted-average shares––basic | [1] | 5,958 | 6,068 | 5,982 | 6,110 | ||
Weighted-average shares––diluted | [1],[7] | 6,037 | 6,149 | 6,065 | 6,188 | ||
Cash dividends paid per common share (in dollars per share) | [1] | $ 0.32 | $ 0.30 | $ 0.64 | $ 0.60 | ||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||||
[3] | Income from continuing operations before provision for taxes on income. IH’s earnings in the second quarter and first six months of 2017 include d ividend income of $114 million and $157 million , respectively, from our investment in ViiV. For additional information, see | ||||||
[4] | Amounts for the three and six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see Note 1B . Basis of Presentation and Significant Accounting Policies––Adoption of New Accounting Standards | ||||||
[5] | Amounts may not add due to rounding. | ||||||
[6] | Amounts may not add due to rounding. | ||||||
[7] | Amounts for the second quarter and first six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016 , as of January 1, 2016, that requires, when applying the treasury stock method for shares that could be repurchased, that the assumed proceeds no longer include the amount of excess tax benefit (see Note 1B |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income before allocation to noncontrolling interests | [1],[2],[3],[4] | $ 3,078 | $ 2,063 | $ 6,208 | $ 5,111 |
Foreign currency translation adjustments, net | [4] | 247 | 515 | 474 | 581 |
Reclassification adjustments | [4],[5] | 111 | 0 | 112 | 0 |
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax | [4] | 358 | 515 | 586 | 581 |
Unrealized holding losses on derivative financial instruments, net | [4] | (90) | (571) | (99) | (845) |
Reclassification adjustments for realized (gains)/losses | [4],[6] | (208) | 469 | (449) | 130 |
Other comprehensive income (loss), derivatives qualifying as hedges, before tax, total | [4] | (297) | (102) | (548) | (714) |
Unrealized holding gains on available-for-sale securities, net | [4] | 164 | 350 | 314 | 479 |
Reclassification adjustments for realized (gains)/losses | [4],[6] | (40) | (226) | 97 | (16) |
Other comprehensive income (loss), available-for-sale securities adjustment, before tax, total | [4] | 124 | 124 | 412 | 463 |
Benefit plans: actuarial gains/(losses), net | [4] | 61 | (19) | 62 | (19) |
Reclassification adjustments related to amortization | [4],[7] | 145 | 139 | 308 | 278 |
Reclassification adjustments related to settlements, net | [4],[7] | (1) | 22 | 51 | 48 |
Other | [4] | (80) | (57) | (35) | (18) |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net gain (loss), before tax, total | [4] | 124 | 85 | 385 | 288 |
Benefit plans: prior service (costs)/credits and other, net | [4] | (2) | 87 | (2) | 87 |
Reclassification adjustments related to amortization | [4],[7] | (46) | (41) | (91) | (81) |
Reclassification adjustments related to curtailments, net | [4],[7] | (4) | 0 | (11) | (6) |
Other | [4] | 0 | 1 | 1 | 6 |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net prior service cost, before tax | [4] | (52) | 48 | (104) | 6 |
Other comprehensive income, before tax | [4] | 258 | 669 | 732 | 624 |
Tax provision/(benefit) on other comprehensive income | [4],[8] | (163) | 36 | (138) | (5) |
Other comprehensive income before allocation to noncontrolling interests | [4] | 421 | 633 | 870 | 629 |
Comprehensive income before allocation to noncontrolling interests | [4] | 3,499 | 2,696 | 7,078 | 5,740 |
Less: Comprehensive income attributable to noncontrolling interests | [4] | 13 | 21 | 29 | 24 |
Comprehensive income attributable to Pfizer Inc. | [4] | $ 3,486 | $ 2,676 | $ 7,049 | $ 5,715 |
[1] | Amounts for the three and six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see Note 1B . Basis of Presentation and Significant Accounting Policies––Adoption of New Accounting Standards | ||||
[2] | Amounts may not add due to rounding. | ||||
[3] | Amounts may not add due to rounding. | ||||
[4] | Amounts may not add due to rounding. | ||||
[5] | The foreign currency translation adjustments reclassified into Other (income)/deductions—net in the condensed consolidated statements of income primarily result from the agreement to sell our 40% ownership investment in Teuto. See Note 2D. Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments | ||||
[6] | Reclassified into Other (income)/deductions—net and Cost of sales | ||||
[7] | 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 | ||||
[8] | See Note 5C. Tax Matters: Tax Provision/(Benefit) on Other Comprehensive Income. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) | Jun. 30, 2017 | Jul. 03, 2016 |
Laboratorio Teuto Brasilero [Member] | ||
Equity method investment, ownership percentage | 40.00% | 40.00% |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and cash equivalents | [1],[2] | $ 2,585 | $ 2,595 |
Short-term investments | [1] | 11,748 | 15,255 |
Trade accounts receivable, less allowance for doubtful accounts: 2017—$579; 2016—$609 | [1] | 9,476 | 8,225 |
Inventories | [1],[3] | 7,584 | 6,783 |
Current tax assets | [1] | 3,113 | 3,041 |
Other current assets | [1] | 1,877 | 2,249 |
Assets held for sale | [1] | 3 | 801 |
Total current assets | [1] | 36,385 | 38,949 |
Long-term investments | [1] | 7,008 | 7,116 |
Property, plant and equipment, less accumulated depreciation: 2017—$15,506; 2016—$14,807 | [1] | 13,386 | 13,318 |
Identifiable intangible assets, less accumulated amortization | [1],[4] | 51,348 | 52,648 |
Goodwill | [1] | 55,014 | 54,449 |
Noncurrent deferred tax assets and other noncurrent tax assets | [1] | 1,952 | 1,812 |
Other noncurrent assets | [1] | 3,466 | 3,323 |
Total assets | [1] | 168,558 | 171,615 |
Liabilities and Equity | |||
Short-term borrowings, including current portion of long-term debt: 2017—$3,072; 2016—$4,225 | [1],[5] | 9,514 | 10,688 |
Trade accounts payable | [1] | 3,439 | 4,536 |
Dividends payable | [1] | 1,904 | 1,944 |
Income taxes payable | [1] | 552 | 437 |
Accrued compensation and related items | [1] | 1,625 | 2,487 |
Other current liabilities | [1] | 10,148 | 11,023 |
Total current liabilities | [1] | 27,182 | 31,115 |
Long-term debt | [1],[6] | 34,191 | 31,398 |
Pension benefit obligations, net | [1] | 5,371 | 6,406 |
Postretirement benefit obligations, net | [1] | 1,705 | 1,766 |
Noncurrent deferred tax liabilities | [1] | 30,879 | 30,753 |
Other taxes payable | [1] | 4,096 | 4,000 |
Other noncurrent liabilities | [1] | 6,440 | 6,337 |
Total liabilities | [1] | 109,863 | 111,776 |
Commitments and Contingencies | [1] | ||
Preferred stock | [1] | 23 | 24 |
Common stock | [1] | 463 | 461 |
Additional paid-in capital | [1] | 83,373 | 82,685 |
Treasury stock | [1] | (89,416) | (84,364) |
Retained earnings | [1] | 74,107 | 71,774 |
Accumulated other comprehensive loss | [1] | (10,181) | (11,036) |
Total Pfizer Inc. shareholders’ equity | [1] | 58,368 | 59,544 |
Equity attributable to noncontrolling interests | [1] | 326 | 296 |
Total equity | [1] | 58,694 | 59,840 |
Total liabilities and equity | [1] | $ 168,558 | $ 171,615 |
[1] | Amounts may not add due to rounding. | ||
[2] | Amounts may not add due to rounding. | ||
[3] | The change from December 31, 2016 | ||
[4] | The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization, partially offset by assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A | ||
[5] | 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 July 2, 2017 or December 31, 2016 . 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 priv | ||
[6] | The fair value of our long-term debt (not including the current portion of long-term debt) was $38.5 billion as of July 2, 2017 and $34.9 billion as of December 31, 2016 . The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Long-term debt includes foreign currency long-term borrowings with fair values of $4.5 billion as of July 2, 2017 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | [1] | $ 579 | $ 609 |
Property, plant and equipment, accumulated depreciation | [1] | 15,506 | 14,807 |
Current portion of long-term debt | [1] | $ 3,072 | $ 4,225 |
[1] | Amounts may not add due to rounding. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | |||
Operating Activities | ||||
Net income before allocation to noncontrolling interests | [1],[2],[3],[4] | $ 6,208 | $ 5,111 | |
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ||||
Depreciation and amortization | [4] | 3,129 | 2,812 | |
Asset write-offs and impairments | [4] | 97 | 983 | |
Loss on sale of HIS net assets | [4],[5] | 64 | 0 | |
Deferred taxes from continuing operations | [4] | 320 | (10) | |
Share-based compensation expense | [4] | 388 | 387 | |
Benefit plan contributions in excess of expense | [4] | (1,079) | (857) | |
Other adjustments, net | [4] | (433) | 170 | |
Other changes in assets and liabilities, net of acquisitions and divestitures | [4],[6] | (3,853) | (3,182) | |
Net cash provided by operating activities | [4] | 4,841 | 5,414 | |
Investing Activities | ||||
Purchases of property, plant and equipment | [4] | (806) | (702) | |
Purchases of short-term investments | [4] | (2,394) | (8,744) | |
Proceeds from redemptions/sales of short-term investments | [4] | 3,520 | 14,757 | |
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | [4] | 3,424 | (249) | |
Purchases of long-term investments | [4] | (1,663) | (3,126) | |
Proceeds from redemptions/sales of long-term investments | [4] | 1,539 | 2,427 | |
Acquisitions of businesses, net of cash acquired | [4] | (1,000) | (4,616) | |
Acquisitions of intangible assets | [4] | (41) | (96) | |
Other investing activities, net | [4] | 455 | 26 | |
Net cash provided by/(used in) investing activities | [4] | 3,034 | (323) | |
Financing Activities | ||||
Proceeds from short-term borrowings | [4] | 4,799 | 2,307 | |
Principal payments on short-term borrowings | [4] | (5,110) | (2,291) | |
Net proceeds from short-term borrowings with original maturities of three months or less | [4] | 261 | 2,182 | |
Proceeds from issuance of long-term debt | [4] | 5,273 | 5,031 | |
Principal payments on long-term debt | [4] | (4,473) | (4,317) | |
Purchases of common stock | [4] | (5,000) | (5,000) | |
Cash dividends paid | [4] | (3,855) | (3,675) | |
Proceeds from exercise of stock options | [4] | 411 | 696 | |
Other financing activities, net | [4],[6] | (228) | (186) | |
Net cash used in financing activities | [4] | (7,922) | (5,253) | |
Effect of exchange-rate changes on cash and cash equivalents | [4] | 37 | (68) | |
Net decrease in cash and cash equivalents | [4] | (10) | (230) | |
Cash and cash equivalents, beginning | [4] | 2,595 | [7] | 3,641 |
Cash and cash equivalents, end | [4] | 2,585 | [7] | 3,411 |
Non-cash transactions: | ||||
Receipt of ICU Medical common stock | [4],[8] | 428 | 0 | |
Promissory note from ICU Medical | [4],[8] | 75 | 0 | |
Cash paid (received) during the period for: | ||||
Income taxes | [4] | 1,121 | 1,111 | |
Interest | [4] | 881 | 903 | |
Interest rate hedges | [4] | $ (226) | $ (306) | |
[1] | Amounts for the three and six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see Note 1B . Basis of Presentation and Significant Accounting Policies––Adoption of New Accounting Standards | |||
[2] | Amounts may not add due to rounding. | |||
[3] | Amounts may not add due to rounding. | |||
[4] | Amounts may not add due to rounding. | |||
[5] | In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. | |||
[6] | Amounts for the three and six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see Note 1B . Basis of Presentation and Significant Accounting Policies | |||
[7] | Amounts may not add due to rounding. | |||
[8] | In connection with the sale of HIS net assets to ICU Medical, on February 3, 2017, Pfizer received 3.2 million newly issued shares of ICU Medical common stock valued at $428 million and a promissory note in the amount of $75 million . For additional information, see Note 2B . Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - HIS [Member] - Disposed of by Sale [Member] - ICU Medical [Member] - USD ($) shares in Millions, $ in Millions | Jul. 02, 2017 | Feb. 03, 2017 |
Number of shares received in disposition | 3.2 | |
Value of shares received from disposition | $ 428 | $ 428 |
Promissory note | $ 75 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jul. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies A. Basis of Presentation See the Glossary of Defined Terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout the condensed consolidated financial statements and related notes of this Quarterly Report on Form 10-Q. We prepared the condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial information included in our condensed consolidated financial statements for subsidiaries operating outside the U.S. is as of and for the three and six months ended May 28, 2017 and May 29, 2016 . The financial information included in our condensed consolidated financial statements for U.S. subsidiaries is as of and for the three and six months ended July 2, 2017 and July 3, 2016 . 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 interim financial statements include all normal and recurring adjustments that are considered necessary for the fair statement 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 2016 Form 10-K. We manage our commercial operations through two distinct business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). Beginning in the second quarter of 2016 , we reorganized our operating segments to reflect that we manage our innovative pharmaceutical and consumer healthcare operations as one business segment, IH. For additional information, see Note 13 and Notes to Consolidated Financial Statements–– Note 18. Segment, Geographic and Other Revenue Information in Pfizer’s 2016 Financial Report. Certain amounts in the condensed consolidated financial statements and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts. Our recent significant business development activities include: • On February 3, 2017, we completed the sale of our global infusion therapy net assets, HIS, to ICU Medical. The operating results of HIS are included in the condensed consolidated statement of income and EH’s operating results through February 2, 2017 and, therefore, our financial results, and EH’s operating results, for the second quarter of 2017 do not reflect any contribution from HIS global operations, while our financial results, and EH’s operating results, for the second quarter of 2016 reflect three months of HIS global operations. Our financial results, and EH’s operating results, for the first six months of 2017 reflect approximately one month of HIS domestic operations and approximately two months of HIS international operations, while our financial results, and EH’s operating results, for the first six months of 2016 reflect six months of HIS global operations. Assets and liabilities associated with HIS are presented as held for sale in the condensed consolidated balance sheet as of December 31, 2016. The HIS assets held for sale are reported in Assets held for sale and HIS liabilities held for sale are reported in Other current liabilities. • On December 22, 2016, which falls in the first fiscal quarter of 2017 for our international operations, we acquired the development and commercialization rights to AstraZeneca’s small molecule anti-infectives business, primarily outside the U.S. Commencing from the acquisition date, our financial statements reflect the assets, liabilities, operating results and cash flows of this business, and, in accordance with our international reporting period, our financial results, and EH’s operating results, for the second quarter and first six months of 2017 reflect approximately three months and five months, respectively, of the small molecule anti-infectives business acquired from AstraZeneca. • On September 28, 2016, we acquired Medivation for $81.50 per share. Commencing from the acquisition date, our financial statements reflect the assets, liabilities, operating results and cash flows of Medivation. Therefore, Medivation operations are reflected in our financial results, IH’s operating results, and cash flows for the second quarter and first six months of 2017 , but not for the second quarter and first six months of 2016 . • On June 24, 2016, we acquired Anacor for $99.25 per share. Commencing from the acquisition date, our financial statements reflect the assets, liabilities, operating results and cash flows of Anacor. Therefore, Anacor operations are reflected in our financial results, IH’s operating results, and cash flows for the second quarter and first six months of 2017 , but for only five days in the second quarter and first six months of 2016 . For additional information, see Note 2 and Notes to Consolidated Financial Statements–– Note 2. Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments in Pfizer’s 2016 Financial Report. B. Adoption of New Accounting Standards In the fourth quarter of 2016, we adopted a new accounting standard for certain elements of the accounting for share-based payments as of January 1, 2016. Specifically, the new standard requires excess tax benefits or deficiencies (including tax benefits of dividend equivalents) of share-based compensation to be recognized as a component of the Provision for taxes on income , whereas excess tax benefits or deficiencies previously were recognized in Additional paid-in capital . The net tax benefit for the Company was $28 million for the second quarter of 2016 and $50 million for the first six months of 2016 . Also, in the diluted net earnings per share calculation, when applying the treasury stock method for shares that could be repurchased, the assumed proceeds no longer include the amount of excess tax benefit. Another element of the new accounting standard requires that we now present excess tax benefits as operating activities in our consolidated statements of cash flow. We elected to adopt this presentation on a prospective basis as of January 1, 2016. Additionally, cash paid by us when directly withholding shares for tax-withholding purposes is now a cash outflow from financing activities. This reclassification was required to be adopted retrospectively. As a result, $51 million of cash outflows for the first six months of 2016 was reclassified from operating activities to financing activities in the condensed consolidated statement of cash flows. For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards included in our 2016 Financial Report. We adopted a new standard as of January 1, 2017 that amended guidance on the assessment of whether an entity is the primary beneficiary of a variable interest entity. Under this new guidance, when evaluating whether an entity is the primary beneficiary, a single decision maker must consider its indirect interest held through related parties under common control proportionately. There was no material impact to our condensed consolidated financial statements from adopting this standard. |
Acquisitions, Sale of Hospira I
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments | 6 Months Ended |
Jul. 02, 2017 | |
Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract] | |
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments | Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments A. Acquisitions AstraZeneca’s Small Molecule Anti-Infectives Business (EH) On December 22, 2016, which falls in the first fiscal quarter of 2017 for our international operations, we acquired the development and commercialization rights to AstraZeneca’s small molecule anti-infectives business, primarily outside the U.S., including the commercialization and development rights to the newly approved EU drug Zavicefta™ (ceftazidime-avibactam), the marketed agents Merrem™/Meronem™ (meropenem) and Zinforo™ (ceftaroline fosamil), and the clinical development assets ATM-AVI and CXL (ceftaroline fosamil-AVI). Under the terms of the agreement, we made an upfront payment of approximately $552 million to AstraZeneca upon the close of the transaction and an additional $3 million payment for a contractual purchase price adjustment in the second quarter of 2017. We also made a $50 million milestone payment to AstraZeneca in the second quarter of 2017 and will make a deferred payment of $175 million in January 2019. In addition, AstraZeneca is eligible to receive up to $200 million in additional milestone payments, and up to $600 million if sales of Zavicefta™ exceed certain thresholds during the next nine years, as well as tiered royalties on sales of Zavicefta™ and ATM-AVI in certain markets for a period ending on the later of ten years or the loss of patent protection or loss of regulatory exclusivity. The total royalty payments are unlimited during the royalty term and the undiscounted payments are expected to be in the range of approximately $250 million to $425 million . The total fair value of consideration transferred for AstraZeneca’s small molecule anti-infectives business was approximately $1,045 million , which includes $555 million in cash, plus the fair value of contingent consideration of $490 million (which is composed of the deferred payment, the $50 million milestone payment made in the second quarter of 2017 and the future expected milestone and royalty payments). In connection with this acquisition, we provisionally recorded $902 million in Identifiable intangible assets , primarily consisting of $683 million in Developed technology rights and $219 million in IPR&D . We also recorded $96 million in Other current assets related to the economic value of inventory which was retained by AstraZeneca for sale on our behalf, $68 million in Goodwill and $20 million of net deferred tax liabilities. The allocation of the consideration transferred to the assets and the liabilities assumed has not yet been finalized. Medivation, Inc. (IH) On September 28, 2016, we acquired Medivation for $81.50 per share. The total fair value of consideration transferred for Medivation was approximately $14.3 billion in cash ( $13.9 billion , net of cash acquired). Of this consideration, approximately $365 million was not paid as of December 31, 2016, and was recorded in Other current liabilities. Substantially all of the remaining consideration was paid as of July 2, 2017 . Medivation is now a wholly-owned subsidiary of Pfizer. Medivation is a biopharmaceutical company focused on developing and commercializing small molecules for oncology. Medivation’s portfolio includes Xtandi (enzalutamide), an androgen receptor inhibitor that blocks multiple steps in the androgen receptor signaling pathway within tumor cells. Xtandi is being developed and commercialized through a collaboration with Astellas. Astellas has exclusive commercialization rights for Xtandi outside the U.S. In addition, Medivation has a development-stage oncology asset in its pipeline, talazoparib, which is currently in a Phase 3 study for the treatment of BRCA-mutated breast cancer. In connection with this acquisition, we provisionally recorded $13.0 billion in Identifiable intangible assets , primarily consisting of $8.7 billion of Developed technology rights with an average useful life of approximately 12 years and $4.3 billion of IPR&D, and provisionally recorded $5.6 billion of Goodwill, $4.3 billion of net income tax liabilities, and $259 million of assumed contingent consideration. The allocation of the consideration transferred to the assets acquired and the liabilities assumed has not yet been finalized. Bamboo Therapeutics, Inc. (R&D) On August 1, 2016, we acquired all the remaining equity in Bamboo, a privately-held biotechnology company focused on developing gene therapies for the potential treatment of patients with certain rare diseases relating to neuromuscular conditions and those affecting the central nervous system, for $150 million , plus potential milestone payments of up to $495 million contingent upon the progression of key assets through development, regulatory approval and commercialization. The total fair value of the consideration transferred for Bamboo was approximately $331 million , including cash of $130 million ( $101 million , net of cash acquired), contingent consideration of $157 million , consisting of milestone payments, and the fair value of Pfizer’s previously held equity interest in Bamboo of $44 million . We previously purchased a minority stake in Bamboo in the first quarter of 2016 for a payment of approximately $43 million . Upon acquiring the remaining interest in Bamboo, in the third quarter of 2016 , we recognized a gain of $1 million on our existing investment in Other (income)/deductions––net. This acquisition provides us with several clinical and pre-clinical assets that complement our rare disease portfolio, an advanced recombinant AAV vector design and production technology, and a fully functional Phase I/II gene therapy manufacturing facility. Bamboo is now a wholly-owned subsidiary of Pfizer. In connection with this acquisition, we provisionally recorded $325 million of Identifiable intangible assets, consisting entirely of IPR&D. We also provisionally recorded $133 million of Goodwill and $93 million of net deferred tax liabilities. The allocation of the consideration transferred to the assets acquired and the liabilities assumed has not yet been finalized. Anacor Pharmaceuticals, Inc. (IH) On June 24, 2016, we acquired Anacor for $99.25 per share. The total fair value of consideration transferred for Anacor was approximately $4.9 billion in cash ( $4.5 billion net of cash acquired), plus $698 million debt assumed. Anacor is now a wholly-owned subsidiary of Pfizer. Anacor is a biopharmaceutical company focused on novel small-molecule therapeutics derived from its boron chemistry platform. Anacor’s crisaborole, a non-steroidal topical PDE-4 inhibitor with anti-inflammatory properties, was approved by the FDA on December 14, 2016 under the trade name Eucrisa. In connection with this acquisition, we recorded $698 million as the fair value of notes payable in cash, and recorded $4.9 billion in Identifiable intangible assets , primarily consisting of $4.8 billion of IPR&D , and recorded $646 million of Goodwill and $346 million of net income tax liabilities. The final allocation of the consideration transferred to the assets acquired and the liabilities assumed has been completed. B. Sale of Hospira Infusion Systems Net Assets to ICU Medical, Inc. (EH) On October 6, 2016, we announced that we entered into a definitive agreement under which ICU Medical would acquire all of our global infusion therapy net assets, HIS, for approximately $1 billion in cash and ICU Medical common stock . HIS includes IV pumps, solutions, and devices. As a result of the performance of HIS relative to ICU Medical’s expectations, on January 5, 2017, we entered into a revised agreement with ICU Medical under which ICU Medical would acquire HIS for up to approximately $900 million , composed of cash and contingent cash consideration, ICU Medical common stock and seller financing. The revised transaction closed on February 3, 2017. At closing, under the terms of the revised agreement, we received 3.2 million newly issued shares of ICU Medical common stock (as originally agreed), which we valued at approximately $428 million (based upon the closing price of ICU Medical common stock on the closing date less a discount for lack of marketability) and which are reported in Long-term investments on the condensed consolidated balance sheet as of July 2, 2017 , a promissory note in the amount of $75 million , which is reported in Other noncurrent assets on the condensed consolidated balance sheet as of July 2, 2017 , and net cash of approximately $200 million before customary adjustments for net working capital, which is reported in Other investing activities, net on the condensed consolidated statement of cash flows for the six months ended July 2, 2017 . In addition, we are entitled to receive a contingent amount of up to an additional $225 million in cash based on ICU Medical’s achievement of certain cumulative performance targets for the combined company through December 31, 2019. After receipt of the ICU Medical shares, we own approximately 16% of ICU Medical. We have agreed to certain restrictions on transfer of our ICU Medical shares for 18 months after the closing date. The promissory note from ICU Medical has a term of three years and bears interest at LIBOR plus 2.25% for the first year and LIBOR plus 2.50% for the second and third years. In the second quarter and first six months of 2017 , we recognized pre-tax losses of approximately $28 million and $64 million , respectively, in Other (income)/deductions––net, (see Note 4 ), representing incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell. While we have received the full purchase price excluding the contingent amount as of the February 3, 2017 closing, the sale of the HIS net assets was not completed in certain non-U.S. jurisdictions due to temporary regulatory or operational constraints. In these jurisdictions, which represent a relatively small portion of the HIS net assets, we continue to operate the net assets for the net economic benefit of ICU Medical, and we are indemnified by ICU Medical against risks associated with such operations during the interim period, subject to our obligations under the definitive transaction agreements. We expect the sale of the HIS net assets in these jurisdictions to be completed by the first quarter of 2018. As such, and as we have already received all of the non-contingent proceeds from the sale and ICU Medical is contractually obligated to complete the transaction, we have treated these jurisdictions as sold for accounting purposes. In connection with the sale transaction, we entered into certain transitional agreements designed to facilitate the orderly transition of the HIS net assets to ICU Medical. These agreements primarily relate to administrative services, which are generally to be provided for a period of up to 24 months after the closing date. We will also manufacture and supply certain HIS products for ICU Medical and ICU Medical will manufacture and supply certain retained Pfizer products for us after closing, generally for a term of five years. These agreements are not material to Pfizer and none confers upon us the ability to influence the operating and/or financial policies of ICU Medical subsequent to the sale. C. Collaboration Arrangement Collaboration with Merck & Co., Inc. In 2013, we entered into a worldwide, except for Japan, collaboration agreement with Merck for the development and commercialization of ertugliflozin (PF-04971729), our investigational oral sodium glucose cotransporter (SGLT2) inhibitor currently in Phase 3 development for the treatment of type 2 diabetes. Under the agreement, we are collaborating with Merck on the clinical development of ertugliflozin, and ertugliflozin-containing fixed-dose combinations with metformin and Januvia (sitagliptin) tablets. In the first quarter of 2017 , we received a $90 million milestone payment from Merck upon the FDA’s acceptance for review of the NDAs for ertugliflozin and two fixed-dose combinations (ertugliflozin plus Januvia (sitagliptin) and ertugliflozin plus metformin), which has been deferred and primarily reported in Other noncurrent liabilities and is being recognized in Other (income)/deductions––net over a multi-year period. We are eligible for additional payments associated with the achievement of future clinical, regulatory and commercial milestones. We share potential revenues and certain costs with Merck on a 60% / 40% basis, with Pfizer having the 40% share. D. Equity-Method Investments Investment in Hisun Pfizer Pharmaceuticals Company Limited In the first and second quarters of 2016 , we determined that we had other-than-temporary declines in the value of Hisun Pfizer, our 49% -owned equity-method investment in China, and, therefore, we recognized losses of $81 million and $130 million , respectively, in Other (income)/deductions––net (see Note 4 ) . The declines in value resulted from lower expectations as to the future cash flows to be generated by Hisun Pfizer, primarily as a result of an increase in risk due to the continued slowdown in the Chinese economy and changes in the expected timing and number of new product introductions by Hisun Pfizer. As of July 2, 2017 , the carrying value of our investment in Hisun Pfizer is $270 million , which is included in Long-term investments . We are continuing to evaluate strategic alternatives with Hisun. These strategic alternatives could impact the value of our investment in Hisun Pfizer in future periods. In valuing our investment in Hisun Pfizer, we used discounted cash flow techniques, 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, economic 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. Investment in Laboratório Teuto Brasileiro S.A. We entered into an agreement on June 30, 2017 to exit our investment in Teuto, a 40% -owned generics company in Brazil, and sell our 40% interest in Teuto to the majority shareholders. As part of the agreement, we have waived our option to acquire the remaining 60% of Teuto, and Teuto’s other shareholders have waived their option to sell their 60% stake in the company to us. The transaction is expected to close in the third quarter of 2017. As a result, in the second quarter of 2017, we recognized a net loss of approximately $30 million in Other (income)/deductions––net (see Note 4 ), which included the impairment of our equity-method investment in Teuto, the reversal of a contingent liability associated with the majority shareholders’ option to sell their 60% stake in the company to us, and the recognition in earnings of the currency translation adjustment associated with the Teuto investment. In the first quarter of 2016 , we determined that we had an other-than-temporary decline in the value of Teuto, and, therefore, we recognized a loss of $50 million in Other (income)/deductions––net (see Note 4 ) related to our equity-method investment. The decline in value resulted from lower expectations as to the future cash flows to be generated by Teuto, primarily due to a slowdown in Brazilian economic conditions, which have been impacted by political risk, higher inflation, and the depreciation of the Brazilian real. |
Restructuring Charges and Other
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 6 Months Ended |
Jul. 02, 2017 | |
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 R&D, as well as groups such as information technology, shared services and corporate operations. In connection with our acquisition of Hospira, we are focusing our efforts on achieving an appropriate cost structure for the combined company. For up to a three -year period post-acquisition, we expect to incur costs of approximately $1 billion (not including costs of $215 million for full-year 2015 associated with the return of acquired IPR&D rights as described in the Current-Period Key Activities section of Notes to Consolidated Financial Statements–– Note 3 . Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives in our 2016 Financial Report) associated with the integration of Hospira. In 2016, we substantially completed previously disclosed cost-reduction initiatives begun in 2014 associated with our global commercial structure reorganization, manufacturing plant network rationalization and optimization initiatives, and additional cost-reduction/productivity initiatives across the enterprise. As a result of the evaluation performed in connection with our decision in September 2016 to not pursue, at that time, splitting IH and EH into two separate publicly-traded companies, we identified new opportunities to potentially achieve greater optimization and efficiency to become more competitive in our business. Therefore, in early 2017 , we initiated new enterprise-wide cost reduction/productivity initiatives, which we expect to substantially complete by the end of 2019. These initiatives will encompass all areas of our cost base and will include: • Optimization of our manufacturing plant network to support IH and EH products and pipelines. During 2017-2019, we expect to incur costs of approximately $750 million related to this initiative. Through July 2, 2017 , we incurred approximately $91 million associated with this initiative. • Activities in non-manufacturing related areas, which include further centralization of our corporate and platform functions, as well as other activities where opportunities are identified. During 2017-2019, we expect to incur costs of approximately $150 million related to this initiative. Through July 2, 2017 , we incurred approximately $73 million associated with this initiative. The costs expected to be incurred during 2017-2019, of approximately $900 million for the above-mentioned programs (but not including expected costs associated with the Hospira integration), include restructuring charges, implementation costs and additional depreciation––asset restructuring. Of this amount, we expect that about a quarter of the charges will be non-cash. Current-Period Key Activities For the first six months of 2017 , we incurred costs of $163 million associated with the 2017-2019 program, $107 million associated with the integration of Hospira and $85 million associated with all other acquisition-related initiatives. The following table provides the components of costs associated with acquisitions and cost-reduction/productivity initiatives: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Restructuring charges (a) : Employee terminations $ 10 $ 93 $ 29 $ 117 Asset impairments — 16 24 18 Exit costs 4 31 6 35 Total restructuring charges 14 141 59 170 Transaction costs (b) 6 36 18 60 Integration costs (c) 50 139 151 227 Restructuring charges and certain acquisition-related costs 70 316 228 457 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 21 52 35 99 Research and development expenses — 1 — 5 Total additional depreciation––asset restructuring 21 53 35 104 Implementation costs recorded in our condensed consolidated statements of income as follows (e) : Cost of sales 36 38 51 81 Selling, informational and administrative expenses 15 20 24 33 Research and development expenses 11 5 17 9 Other (income)/deductions––net — 1 — 1 Total implementation costs 62 64 93 124 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 153 $ 433 $ 356 $ 685 (a) In the second quarter and first six months of 2017 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of mainly Anacor for the second quarter of 2017 and mainly Anacor and Medivation for the first six months of 2017. In the second quarter and first six months of 2016 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions. In the six months ended July 2, 2017 , Employee terminations primarily include pension and postretirement benefit costs, partially offset by revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. The restructuring activities for 2017 are associated with the following: • For the second quarter of 2017 , IH ( $3 million income); EH ( $8 million ); WRD/GPD ( $3 million ); manufacturing operations ( $1 million income); and Corporate ( $7 million ). • For the first six months of 2017 , IH ( $6 million ); EH ( $10 million income); WRD/GPD ( $13 million ); manufacturing operations ( $24 million ); and Corporate ( $26 million ). The restructuring activities for 2016 are associated with the following: • For the second quarter of 2016 , IH ( $5 million ); EH ( $11 million income); WRD/GPD ( $49 million ); manufacturing operations ( $59 million ); and Corporate ( $39 million ). • For the first six months of 2016 , IH ( $14 million ); EH ( $8 million income); WRD/GPD ( $52 million ); manufacturing operations ( $73 million ); and Corporate ( $40 million ). (b) Transaction costs represent external costs for banking, legal, accounting and other similar services, virtually all of which in the second quarter and first six months of 2017 are directly related to our acquisition of Medivation. Transaction costs in the second quarter of 2016 were mostly related to the Anacor acquisition and in the first six months of 2016 , were mostly related to the Anacor acquisition and our terminated transaction with Allergan. (c) 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. In the second quarter and first six months of 2017 , integration costs were primarily related to our acquisitions of Hospira and Medivation, including a net gain of $12 million related to the settlement of the Hospira U.S. qualified defined benefit pension plan (see Note 10 ). In the second quarter and first six months of 2016 , integration costs were primarily related to our acquisition of Hospira and the terminated transaction with Allergan. (d) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) 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 Termination Costs Asset Impairment Charges Exit Costs Accrual Balance, December 31, 2016 (a) $ 1,547 $ — $ 36 $ 1,583 Provision 29 24 6 59 Utilization and other (b) (293 ) (24 ) (6 ) (323 ) Balance, July 2, 2017 (c) $ 1,282 $ — $ 36 $ 1,319 (a) Included in Other current liabilities ( $863 million ) and Other noncurrent liabilities ( $720 million ). (b) Includes adjustments for foreign currency translation. (c) Included in Other current liabilities ( $602 million ) and Other noncurrent liabilities ( $717 million |
Other (Income)_Deductions - Net
Other (Income)/Deductions - Net | 6 Months Ended |
Jul. 02, 2017 | |
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 Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Interest income (a) $ (94 ) $ (122 ) $ (175 ) $ (234 ) Interest expense (a) 312 292 621 598 Net interest expense 218 170 446 363 Royalty-related income (b) (105 ) (274 ) (191 ) (461 ) Certain legal matters, net (c) 3 261 11 534 Net gains on asset disposals (d) (62 ) (31 ) (194 ) (39 ) Loss on sale of HIS net assets (e) 28 — 64 — Certain asset impairments (f) — 816 13 947 Business and legal entity alignment costs (g) 17 60 38 111 Other, net (h) (164 ) 66 (254 ) (57 ) Other (income)/deductions––net $ (66 ) $ 1,068 $ (68 ) $ 1,398 (a) Interest income decreased in the second quarter and first six months of 2017 , primarily due to lower investment returns driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2017 , primarily as a result of higher short-term interest rates, offset, in part, by the retirement of high-coupon debt and the issuance of new low-coupon debt. (b) Royalty-related income decreased in the second quarter and first six months of 2017 , primarily due to lower royalty income for Enbrel of $157 million and $275 million , respectively, resulting from the expiration on October 31, 2016 of the 36 -month royalty period under the collaboration agreement for Enbrel in the U.S. and Canada (the collaboration period under the agreement expired on October 31, 2013), partially offset by the addition of Xtandi royalty-related income of $51 million and $87 million , respectively. (c) In the second quarter and first six months of 2016 , primarily includes amounts to resolve a Multi-District Litigation relating to Celebrex and Bextra that was pending against the Company in New York federal court for $486 million , partially offset by the reversal of a legal accrual where a loss was no longer deemed probable. In addition, the first six months of 2016 includes a settlement related to a patent matter. (d) In the second quarter of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $64 million ) and gains on sales/out-licensing of product and compound rights (approximately $27 million ), partially offset by a net loss related to the sale of our 40% ownership investment in Teuto, including the extinguishment of a put option for the remaining 60% ownership interest (approximately $30 million ). In the first six months of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $118 million ), gains on sales/out-licensing of product and compound rights (approximately $69 million ) and a gain on sale of property (approximately $50 million ), partially offset by the net loss related to the sale of our investment in Teuto discussed above. In the first six months of 2016 , primarily includes gains on sales/out-licensing of product and compound rights (approximately $31 million ). (e) In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. (f) In the second quarter and first six months of 2016 , primarily includes intangible asset impairment charges of $641 million , reflecting (i) $331 million related to developed technology rights for a generic injectable antibiotic product for the treatment of bacterial infections; (ii) $265 million related to an IPR&D compound for the treatment of anemia; and (iii) $45 million of other IPR&D assets, all acquired in connection with our acquisition of Hospira and associated with the EH segment. In addition, 2016 includes an impairment loss of $130 million in the second quarter and $211 million in the first six months related to Pfizer’s 49% -owned equity-method investment with Hisun in China, Hisun Pfizer, and the first six months of 2016 includes an impairment loss of $50 million related to Pfizer’s 40% -owned equity-method investment in Teuto. For additional information concerning Hisun Pfizer and Teuto, see Note 2D. (g) In the second quarter and first six months of 2017 and 2016 , represents expenses for changes to our infrastructure to align our commercial operations, including costs to internally separate our businesses into distinct legal entities, as well as to streamline our intercompany supply operations to better support each business. (h) In the second quarter and first six months of 2017 , primarily includes, among other things, dividend income of $114 million and $157 million , respectively, from our investment in ViiV. In the second quarter and first six months of 2016 , primarily includes, among other things, $150 million paid to Allergan for reimbursement of Allergan’s expenses associated with the terminated transaction. The first six months of 2016 also includes income of $116 million |
Tax Matters
Tax Matters | 6 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Tax Matters | Tax Matters A. Taxes on Income from Continuing Operations Our effective tax rate for continuing operations was 19.4% for the second quarter of 2017 , compared to 14.4% for the second quarter of 2016 and was 20.1% for the first six months of 2017 , compared to 14.4% for the first six months of 2016 . The higher effective tax rate for the second quarter of 2017 in comparison with the same period in 2016 was primarily due to an unfavorable change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business. The higher effective tax rate for the first six months of 2017 in comparison with the same period in 2016 was primarily due to: • the non-recurrence of benefits related to the final resolution of an agreement in principle reached in February 2016 and finalized in April 2016 to resolve certain claims related to Protonix, which resulted in the receipt of information that raised our initial assessment in 2015 of the likelihood of prevailing on the technical merits of our tax position; • the non-recurrence of benefits associated with our Venezuela operations; as well as • a decrease in benefits associated with the resolution of certain tax positions pertaining to prior years primarily with various foreign tax authorities, and the expiration of certain statutes of limitations, partially offset by: • the change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business. 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, as we treat these events as discrete items in the period of resolution. The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS: • With respect to Pfizer, the IRS has issued a Revenue Agent’s Report (RAR) for tax years 2009-2010. We are not in agreement with the RAR and are currently appealing certain disputed issues. Tax years 2011-2013 are currently under audit. Tax years 2014-2017 are open, but not under audit. All other tax years are closed. • With respect to Hospira, the IRS is currently auditing tax years 2012-2013 and 2014 through short-year 2015. All other tax years are closed. The tax years under audit for Hospira are not considered material to Pfizer. • With respect to Anacor and Medivation, the open tax years are not considered material to Pfizer. In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2010-2017), Japan (2015-2017), Europe (2011-2017, primarily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany), Latin America (1998-2017, primarily reflecting Brazil) and Puerto Rico (2010-2017). C. Tax Provision/(Benefit) on Other Comprehensive Income The following table provides the components of Tax provision/(benefit) on other comprehensive income: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Foreign currency translation adjustments, net (a) $ (109 ) $ (1 ) $ (130 ) $ (15 ) Unrealized holding losses on derivative financial instruments, net (1 ) (157 ) 2 (193 ) Reclassification adjustments for realized (gains)/losses (88 ) 122 (140 ) 49 (89 ) (35 ) (138 ) (144 ) Unrealized holding gains on available-for-sale securities, net 18 49 55 65 Reclassification adjustments for realized (gains)/losses (7 ) (28 ) 4 (2 ) 11 21 59 63 Benefit plans: actuarial gains/(losses), net 22 (8 ) 22 (8 ) Reclassification adjustments related to amortization 43 47 92 93 Reclassification adjustments related to settlements, net (4 ) 8 8 17 Other (17 ) (9 ) (13 ) (9 ) 43 38 110 93 Benefit plans: prior service (costs)/credits and other, net — 31 — 31 Reclassification adjustments related to amortization (17 ) (15 ) (33 ) (30 ) Reclassification adjustments related to curtailments, net (1 ) — (4 ) (2 ) Other — (2 ) — (1 ) (19 ) 14 (38 ) (3 ) Tax provision/(benefit) on other comprehensive income $ (163 ) $ 36 $ (138 ) $ (5 ) (a) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | 6 Months Ended |
Jul. 02, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests The following table provides the changes, net of tax, in Accumulated other comprehensive loss : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS OF DOLLARS) Foreign Currency Translation Adjustments Derivative Financial Instruments Available-For-Sale Securities Actuarial Gains/(Losses) Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2016 $ (6,659 ) $ 348 $ (131 ) $ (5,473 ) $ 879 $ (11,036 ) Other comprehensive income/(loss) (a) 702 (410 ) 352 276 (66 ) 855 Balance, July 2, 2017 $ (5,957 ) $ (62 ) $ 221 $ (5,198 ) $ 814 $ (10,181 ) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $15 million income for the first six months of 2017 . As of July 2, 2017 , with respect to derivative financial instruments, the amount of unrealized pre-tax net losses on derivative financial instruments estimated to be reclassified into income within the next 12 months is approximately $100 million |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 02, 2017 | |
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) July 2, December 31, Selected financial assets measured at fair value on a recurring basis (a) Trading funds and securities (b) $ 323 $ 325 Available-for-sale debt securities (c) 14,995 18,632 Money market funds 1,021 1,445 Available-for-sale equity securities (c) 488 540 Derivative financial instruments in a receivable position (d) : Interest rate swaps 640 625 Foreign currency swaps 34 79 Foreign currency forward-exchange contracts 144 551 17,645 22,198 Other selected financial assets Held-to-maturity debt securities, carried at amortized cost (c), (e) 1,554 1,242 Restricted stock and private equity securities, carried at cost or at equity-method (e), (f) 1,125 735 2,678 1,977 Total selected financial assets $ 20,323 $ 24,175 Selected financial liabilities measured at fair value on a recurring basis (a) Derivative financial instruments in a liability position (g) : Interest rate swaps $ 166 $ 148 Foreign currency swaps 939 1,374 Foreign currency forward-exchange contracts 254 143 1,359 1,665 Other selected financial liabilities Short-term borrowings: Principal amount 9,523 10,674 Net fair value adjustments related to hedging and purchase accounting 4 24 Net unamortized discounts, premiums and debt issuance costs (14 ) (11 ) Total short-term borrowings, carried at historical proceeds, as adjusted (e) 9,514 10,688 Long-term debt: Principal amount 33,357 30,529 Net fair value adjustments related to hedging and purchase accounting 986 998 Net unamortized discounts, premiums and debt issuance costs (151 ) (130 ) Total long-term debt, carried at historical proceeds, as adjusted (h) 34,191 31,398 43,705 42,085 Total selected financial liabilities $ 45,064 $ 43,750 (a) We use a market approach in valuing financial instruments on a recurring basis. 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 4% that use Level 1 inputs and money market funds that are measured at net asset value. (b) As of July 2, 2017 , trading funds and securities are composed of $244 million of trading equity funds and $78 million of trading debt funds. As of December 31, 2016 , trading funds and securities are composed of $236 million of trading equity funds and $89 million of trading debt funds. As of July 2, 2017 and December 31, 2016 , trading equity funds of $55 million and $71 million , respectively, are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. (c) Gross unrealized gains and losses are not significant. (d) Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $60 million as of July 2, 2017 ; and foreign currency forward-exchange contracts with fair values of $162 million as of December 31, 2016 . (e) 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 July 2, 2017 or December 31, 2016 . 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 priv ate equity securities carried at cost are based on Level 3 inputs. (f) Restricted stock as of July 2, 2017 is primarily composed of $428 million representing the value of 3.2 million shares of ICU Medical common stock received on February 3, 2017, with a fair value of $544 million as of July 2, 2017 based on the closing price of ICU Medical common stock less a discount for lack of marketability. See Note 2B for additional information. Our p rivate equity securities represent investments in the life sciences sector. (g) Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $72 million as of July 2, 2017 ; and foreign currency swaps with fair values of $269 million and foreign currency forward-exchange contracts with fair values of $113 million as of December 31, 2016 . (h) The fair value of our long-term debt (not including the current portion of long-term debt) was $38.5 billion as of July 2, 2017 and $34.9 billion as of December 31, 2016 . The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Long-term debt includes foreign currency long-term borrowings with fair values of $4.5 billion as of July 2, 2017 , which are used as hedging instruments. The following table provides the classification of these selected financial assets and liabilities in our condensed consolidated balance sheets: (MILLIONS OF DOLLARS) July 2, December 31, Assets Cash and cash equivalents $ 749 $ 547 Short-term investments 11,748 15,255 Other current assets (a) 251 567 Long-term investments 7,008 7,116 Other noncurrent assets (b) 568 689 $ 20,323 $ 24,175 Liabilities Short-term borrowings, including current portion of long-term debt $ 9,514 $ 10,688 Other current liabilities (c) 234 443 Long-term debt 34,191 31,398 Other noncurrent liabilities (d) 1,125 1,222 $ 45,064 $ 43,750 (a) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $106 million ), foreign currency swaps ( $8 million ) and foreign currency forward-exchange contracts ( $137 million ) and, as of December 31, 2016 , include interest rate swaps ( $26 million ), foreign currency swaps ( $43 million ) and foreign currency forward-exchange contracts ( $497 million ). (b) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $534 million ), foreign currency swaps ( $27 million ) and foreign currency forward-exchange contracts ( $7 million ) and, as of December 31, 2016 , include interest rate swaps ( $599 million ), foreign currency swaps ( $36 million ) and foreign currency forward-exchange contracts ( $54 million ). (c) As of July 2, 2017 , derivative instruments at fair value include foreign currency swaps ( $5 million ) and foreign currency forward-exchange contracts ( $229 million ) and, as of December 31, 2016 , include interest rate swaps ( $1 million ), foreign currency swaps ( $300 million ) and foreign currency forward-exchange contracts ( $143 million ). (d) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $166 million ), foreign currency swaps ( $933 million ) and foreign currency forward-exchange contracts ( $26 million ) and, as of December 31, 2016 , include interest rate swaps ( $147 million ) and foreign currency swaps ( $1.1 billion ). 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, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: Years July 2, (MILLIONS OF DOLLARS) Within 1 Over 1 to 5 Over 5 to 10 Over 10 Total Available-for-sale debt securities Corporate debt (a) $ 2,561 $ 2,613 $ 1,579 $ 16 $ 6,770 Western European, Asian, and other government debt (b) 4,863 377 — — 5,240 Western European, Scandinavian and other government agency debt (b) 1,120 46 6 — 1,172 Government National Mortgage Association and other U.S. government guaranteed asset-backed securities 404 84 — — 488 Other asset-backed debt (c) 302 102 4 — 408 U.S. government debt 328 35 9 — 371 Supranational debt (b) 351 194 — — 546 Held-to-maturity debt securities Time deposits and other 1,275 — 3 — 1,279 Western European government debt (b) 275 — — — 275 Total debt securities $ 11,479 $ 3,452 $ 1,601 $ 16 $ 16,548 (a) Issued by a diverse group of corporations, with a significant concentration in the technology and energy sectors, all of which are investment-grade. (b) Issued by governments, government agencies or supranational entities, as applicable, all of which are high quality. (c) Includes receivable-backed, loan-backed, and mortgage-backed securities, all of which are high quality and in senior positions in the capital structure of the security. Receivable-backed securities are collateralized by credit cards receivables, loan-backed securities are collateralized by senior secured obligations of a diverse pool of companies or student loans, and mortgage-backed securities are collateralized by diversified pools of residential and commercial mortgages. C. Short-Term Borrowings Short-term borrowings include amounts for commercial paper of $6.1 billion as of July 2, 2017 and $5.8 billion as of December 31, 2016 . D. Long-Term Debt The following table provides the amounts of senior unsecured long-term debt issued in the first quarter of 2017: Principal As of July 2, 2017 (MILLIONS) Maturity Date Euro U.S. Dollar 3-month EURIBOR + 0.20% floating rate notes (0% floor) March 6, 2019 € 1,250 $ 1,427 0.00% euro notes (a) March 6, 2020 1,000 1,141 0.25% euro notes (a) March 6, 2022 1,000 1,141 1.00% euro notes (a) March 6, 2027 750 856 Total euro long-term debt issued in the first quarter of 2017 (b) € 4,000 $ 4,566 4.20% notes (c) March 17, 2047 1,065 Total long-term debt issued in the first quarter of 2017 (d) $ 5,631 (a) Redeemable at any time, in whole, or in part, at our option prior to 30 to 90 days of maturity date at the comparable German government bond rate, plus 0.15% ; plus, in each case, accrued and unpaid interest. The fixed rate euro notes are also redeemable at our option, in whole, or in part, within 30 to 90 days of maturity date. (b) The weighted-average effective interest rate for the euro notes at issuance was 0.23% . (c) The notes, issued in U.S. dollars in Taiwan, are redeemable, at our option, in whole but not in part, on each March 17 on or after March 17, 2020. (d) The aggregate amount at issuance date was $5,279 million . The increase in the amount since the date of issuance is due to foreign currency exchange. The following table provides the maturity schedule of our Long-term debt outstanding as of July 2, 2017: (MILLIONS OF DOLLARS) 2018 2019 2020 2021 After 2021 Total Maturities $ 484 $ 4,774 $ 1,494 $ 4,418 $ 23,021 $ 34,191 E. Other Noncurrent Liabilities In June 2017, the EU approved Besponsa (inotuzumab ozogamicin) as monotherapy for the treatment of adults with relapsed or refractory CD22-positive B-cell precursor acute lymphoblastic leukemia. In connection with this approval, we incurred an obligation to make guaranteed fixed annual payments over a nine year period aggregating $148 million related to a research and development arrangement. As a result, we recorded the estimated net present value of $118 million as an intangible asset in Developed technology rights , and $115 million in Other noncurrent liabilities and $3 million in Other current liabilities in the second quarter of 2017. F. Derivative Financial Instruments and Hedging Activities Foreign Exchange Risk As of July 2, 2017 , the aggregate notional amount of foreign exchange derivative financial instruments hedging or offsetting foreign currency exposures was $26.4 billion . The derivative financial instruments primarily hedge or offset exposures in the euro and U.K. pound. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.9 billion U.K. pound debt maturing in 2038. We designate foreign currency forward-exchange contracts as cash flow hedges of a portion of our forecasted euro, Japanese yen, U.K. pound, Canadian dollar, and Australian dollar-denominated intercompany inventory sales expected to occur no more than two years from the date of each hedge. As of July 2, 2017 , the notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted sales was $3.5 billion , with a pre-tax loss of $23 million deferred in Accumulated other comprehensive loss. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $2 million within the next 12 months into Cost of sales. We recognized a $26 million gain in the second quarter of 2017 and a $71 million gain in the first six months of 2017 as an offset to Cost of sales . Interest Rate Risk As of July 2, 2017 , the aggregate notional amount of interest rate derivative financial instruments designated as fair value hedges was $12.4 billion . The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt. The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Three Months Ended Amount of Gains/(Losses) Recognized in OID (a), (b), (c) Amount of Gains/(Losses) Recognized in OCI (Effective Portion) (a), (d) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) (a), (d) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, July 2, July 3, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign currency swaps $ — $ — $ 149 $ (345 ) $ 225 $ (243 ) Foreign currency forward-exchange contracts (4 ) (2 ) (239 ) (227 ) (17 ) (226 ) Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency forward-exchange contracts — 3 — (3 ) — — Derivative Financial Instruments Not Designated as Hedges: Foreign currency forward-exchange contracts (3 ) (46 ) — — — — Foreign currency swaps (2 ) (3 ) — — — — Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency long-term debt — — (295 ) — — — $ (9 ) $ (48 ) $ (384 ) $ (575 ) $ 208 $ (470 ) Six Months Ended Amount of Gains/(Losses) Recognized in OID (a), (b), (c) Amount of Gains/(Losses) Recognized in OCI (Effective Portion) (a), (d) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) (a), (d) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, July 2, July 3, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign currency swaps $ — $ — $ 237 $ (290 ) $ 271 $ (126 ) Foreign currency forward-exchange contracts (6 ) (1 ) (335 ) (558 ) 178 (8 ) Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency forward-exchange contracts — 1 — (15 ) — — Derivative Financial Instruments Not Designated as Hedges: Foreign currency forward-exchange contracts (144 ) (69 ) — — — — Foreign currency swaps (1 ) (4 ) — — — — Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings — — — (26 ) — — Foreign currency long-term debt — — (352 ) — — — $ (151 ) $ (73 ) $ (450 ) $ (889 ) $ 450 $ (134 ) (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income . (b) Includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges (primarily interest rate swaps), as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. (c) There was no significant ineffectiveness for any period presented. (d) For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding losses on derivative financial instruments, net . 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, net. For information about the fair value of our derivative financial instruments, and the impact on our condensed consolidated balance sheets, see Note 7A 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 July 2, 2017 , the aggregate fair value of these derivative instruments that are in a net liability position was $409 million , for which we have posted collateral of $400 million in the normal course of business. If there had been a ratings downgrade, we would not have been required to post any collateral to our counterparties . G. 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, except for certain significant customers. As of July 2, 2017 , we had amounts due from a well-diversified, high quality group of bank ( $959 million ), technology ( $941 million ) and energy sector ( $806 million ) companies around the world. For details about our investments, see Note 7B above. In general, there is no requirement for collateral from customers. However, derivative financial instruments are executed under credit-support agreements that provide for the ability to request collateral payments depending on levels of exposure, our credit rating and the credit rating of the counterparty. As of July 2, 2017 , we received cash collateral of $279 million from various counterparties. The collateral primarily supports the approximate fair value of our derivative contracts. With respect to the collateral received, the obligations are reported in |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table provides the components of Inventories : (MILLIONS OF DOLLARS) July 2, December 31, Finished goods $ 2,911 $ 2,293 Work-in-process 3,860 3,696 Raw materials and supplies 813 793 Inventories (a) $ 7,584 $ 6,783 Noncurrent inventories not included above (b) $ 754 $ 683 (a) The change from December 31, 2016 primarily reflects the build of inventory primarily for and in advance of new product launches and to meet targeted levels for certain products, partially offset by inventory reductions in the normal course of business. (b) Included in Other noncurrent assets |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets and Goodwill | Identifiable Intangible Assets and Goodwill A. Identifiable Intangible Assets Balance Sheet Information The following table provides the components of Identifiable intangible assets : July 2, 2017 December 31, 2016 (MILLIONS OF DOLLARS) Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Finite-lived intangible assets Developed technology rights (a) $ 89,531 $ (52,341 ) $ 37,191 $ 83,390 $ (49,650 ) $ 33,740 Brands 2,113 (1,088 ) 1,025 2,092 (1,032 ) 1,060 Licensing agreements and other 1,876 (1,058 ) 818 1,869 (1,005 ) 864 93,520 (54,487 ) 39,033 87,351 (51,687 ) 35,664 Indefinite-lived intangible assets Brands and other 6,902 6,902 6,883 6,883 IPR&D (a) 5,413 5,413 10,101 10,101 12,315 12,315 16,984 16,984 Identifiable intangible assets (b) $ 105,835 $ (54,487 ) $ 51,348 $ 104,335 $ (51,687 ) $ 52,648 (a) The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A ). (b) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization, partially offset by assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ). Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: July 2, 2017 IH EH WRD Developed technology rights 68 % 32 % — % Brands, finite-lived 74 % 26 % — % Brands, indefinite-lived 71 % 29 % — % IPR&D 81 % 13 % 7 % Amortization Total amortization expense for finite-lived intangible assets was $1.2 billion for the second quarter of 2017 and $977 million for the second quarter of 2016 , and $2.4 billion for the first six months of 2017 and $2.0 billion for the first six months of 2016 . B. Goodwill The following table provides the components of and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) IH EH Total Balance, December 31, 2016 $ 30,134 $ 24,315 $ 54,449 Additions (a) 89 68 157 Other (b) 207 201 407 Balance, July 2, 2017 $ 30,430 $ 24,584 $ 55,014 (a) IH additions primarily relate to our Medivation acquisition and EH additions relate to our acquisition of AstraZeneca’s small molecule anti-infectives business and both are subject to change until we complete the valuation of assets acquired and liabilities assumed (see Note 2A ). (b) |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 6 Months Ended |
Jul. 02, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following table provides the components of net periodic benefit cost/(income): Three Months Ended Pension Plans U.S. Qualified (a) U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Net periodic benefit cost/(credit): Service cost $ 67 $ 62 $ 6 $ 5 $ 42 $ 43 $ 11 $ 10 Interest cost 159 134 13 11 50 60 23 22 Expected return on plan assets (252 ) (240 ) — — (85 ) (98 ) (9 ) (8 ) Amortization of: Actuarial losses 97 99 12 9 28 24 8 7 Prior service costs (credits) 1 1 — — (1 ) (1 ) (46 ) (41 ) Curtailments 4 1 — — — (1 ) (5 ) (1 ) Settlements (7 ) 16 4 6 2 — — — $ 69 $ 73 $ 35 $ 31 $ 37 $ 27 $ (19 ) $ (11 ) Six Months Ended Pension Plans U.S. Qualified (a) U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Net periodic benefit cost/(credit): Service cost $ 135 $ 125 $ 12 $ 9 $ 83 $ 85 $ 21 $ 20 Interest cost 321 268 28 23 100 119 45 44 Expected return on plan assets (511 ) (481 ) — — (169 ) (196 ) (18 ) (17 ) Amortization of: Actuarial losses 212 199 25 18 56 46 15 15 Prior service costs (credits) 3 2 — (1 ) (2 ) (1 ) (92 ) (82 ) Curtailments 9 3 — — — (1 ) (12 ) (6 ) Settlements 24 31 24 16 3 1 — — $ 193 $ 146 $ 88 $ 66 $ 71 $ 53 $ (40 ) $ (27 ) (a) In April 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pretax settlement gain of $41 million , partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Restructuring charges and certain acquisition-related costs during the second quarter of 2017 (see Note 3 ). As of and for the six months ended July 2, 2017 , we contributed and expect to contribute from our general assets as follows: Pension Plans (MILLIONS OF DOLLARS) U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans Contributions from our general assets for the six months ended July 2, 2017 $ 1,095 $ 95 $ 92 $ 109 Expected contributions from our general assets during 2017 (a) $ 1,095 $ 141 $ 167 $ 199 (a) Contributions expected to be made for 2017 are inclusive of amounts contributed during the six months ended July 2, 2017 , including the $1.0 billion |
Earnings Per Common Share Attri
Earnings Per Common Share Attributable to Common Shareholders | 6 Months Ended |
Jul. 02, 2017 | |
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 Six Months Ended (IN MILLIONS) July 2, July 3, July 2, July 3, EPS Numerator––Basic Income from continuing operations $ 3,077 $ 2,062 $ 6,207 $ 5,110 Less: Net income attributable to noncontrolling interests 5 16 14 25 Income from continuing operations attributable to Pfizer Inc. 3,071 2,046 6,193 5,085 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 3,071 2,046 6,192 5,084 Discontinued operations––net of tax 2 1 1 1 Net income attributable to Pfizer Inc. common shareholders $ 3,073 $ 2,047 $ 6,194 $ 5,085 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 3,071 $ 2,046 $ 6,193 $ 5,084 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions 2 1 1 1 Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 3,073 $ 2,047 $ 6,194 $ 5,085 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,958 6,068 5,982 6,110 Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements (a) 80 81 83 78 Weighted-average number of common shares outstanding––Diluted (a) 6,037 6,149 6,065 6,188 Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans (a), (b) 47 51 47 71 (a) Amounts for the second quarter and first six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016 , as of January 1, 2016, that requires, when applying the treasury stock method for shares that could be repurchased, that the assumed proceeds no longer include the amount of excess tax benefit (see Note 1B ). (b) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2017 | |
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 Note 5B. On February 2, 2017, we entered into an accelerated share repurchase agreement with Citibank to repurchase $5 billion of our common stock. Pursuant to the terms of the agreement, on February 6, 2017, we paid $5 billion to Citibank and received an initial delivery of approximately 126 million shares of our common stock from Citibank at a price of $31.73 per share, which represented, based on the closing price of our common stock on the NYSE on February 2, 2017, approximately 80% of the notional amount of the accelerated share repurchase agreement. On May 16, 2017, the accelerated share repurchase agreement with Citibank was completed, which, per the terms of the agreement, resulted in Citibank owing us a certain number of shares of Pfizer common stock. Pursuant to the agreement’s settlement terms, we received an additional 24 million shares of our common stock from Citibank on May 19, 2017. The average price paid for all of the shares delivered under the accelerated share repurchase agreement was $33.31 per share. The common stock received is included in Treasury Stock . This agreement was entered into pursuant to our previously announced share repurchase authorization. At July 2, 2017 , our remaining share-purchase authorization was approximately $6.4 billion . A. Legal Proceedings Our non-tax contingencies include, but are not limited to, the following: • Patent litigation, which typically involves challenges to the coverage and/or validity of 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 loss of patent protection for a drug, a significant loss of revenues from that drug or impairment of the value of associated assets. • Product liability and other product-related litigation, which can include personal injury, consumer, off-label promotion, securities, 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, or is, a class action and, if not certified, 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 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 in which we are the plaintiff, 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 drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed alleging that our assertions of, or attempts to enforce, 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, patent rights to certain of our products are being challenged in various other countries. We are also party to other patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments or other parties are seeking damages from us for alleged delay of generic entry. Additionally, our licensing and collaboration partners face challenges by generic drug manufacturers to patents covering several of their products that may impact our licenses or co-promotion rights to such products. We also are often involved in other proceedings, such as inter partes review, post-grant review, re-examination or opposition proceedings, before the U.S. Patent and Trademark Office, the European Patent Office, or other foreign counterparts relating to our intellectual property or the intellectual property rights of others. Also, if one of our patents is found to be invalid by such proceedings, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio have been challenged in inter partes review and post-grant review proceedings in the United States. The invalidation of these patents could potentially allow a competitor pneumococcal vaccine into the marketplace. We are also subject to patent litigation pursuant to which one or more third parties seeks damages and/or injunctive relief to compensate for alleged infringement of its patents by our commercial or other activities. For example, our subsidiary, Hospira, is involved in patent and patent-related disputes over its attempts to bring generic pharmaceutical and biosimilar products to market. If one of our marketed products is found to infringe valid patent rights of a third party, such third party may be awarded significant damages, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold in the event that we or one of our subsidiaries, like Hospira, is found to have willfully infringed valid patent rights of a third party. Actions In Which We Are The Plaintiff Bosulif (bosutinib) In December 2016, Wyeth LLC, Wyeth Pharmaceuticals Inc., and PF Prism C.V. (collectively, Wyeth) brought a patent-infringement action against Alembic Pharmaceuticals, Ltd, Alembic Pharmaceuticals, Inc. (collectively, Alembic), Sun Pharmaceutical Industries, Inc., and Sun Pharmaceutical Industries Limited (collectively, Sun), in the U.S. District Court for the District of Delaware in connection with abbreviated new drug applications respectively filed with the FDA by Alembic and Sun, each seeking approval to market generic versions of bosutinib. Both Alembic and Sun are challenging patents, which expire in 2026, covering polymorphic forms of bosutinib and methods of treating chronic myelogenous leukemia. In March 2017, Wyeth brought a patent-infringement action against MSN Laboratories Private Limited and MSN Pharmaceuticals, Inc. (collectively, MSN), in the U.S. District Court for the District of Delaware in connection with an abbreviated new drug application filed with the FDA by MSN, seeking approval to market a generic version of bosutinib, and challenging a patent expiring in 2026 covering polymorphic forms of bosutinib. EpiPen In July 2010, King, which we acquired in 2011 and is a wholly-owned subsidiary, brought a patent-infringement action against Sandoz in the U.S. District Court for the District of New Jersey in connection with Sandoz’s abbreviated new drug application filed 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. Flector Patch (diclofenac) In October 2015, the owners (Teikoku Seiyaku Co., Ltd. and Altergon SA) of a patent covering Pfizer’s Flector Patch product, along with the New Drug Application holder (IBSA Institut Biochemique SA), brought a patent-infringement action against Actavis Laboratories UT, Inc. in the U.S. District Court for the District of Delaware in connection with an abbreviated new drug application filed by Actavis Laboratories UT, Inc. with the FDA requesting approval to launch a generic version of Flector Patch prior to the 2019 expiration of the patent. In August 2016, Pfizer subsidiary Alpharma Pharmaceuticals LLC was added as a plaintiff to the lawsuit. Precedex Premix In June 2014, Ben Venue Laboratories, Inc. (Ben Venue) notified our subsidiary, Hospira, that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Hospira’s premix version of Precedex and containing allegations that a patent relating to the use of Precedex in an intensive care unit setting, which expires in March 2019, was invalid or not infringed. In August 2014, Hospira and Orion Corporation (co-owner of the patent that is the subject of the lawsuit) filed suit against Ben Venue, Hikma Pharmaceuticals PLC (Hikma), and West-Ward Pharmaceutical Corp. in the U.S. District Court for the District of Delaware asserting the validity and infringement of the patent that is the subject of the lawsuit. In October 2014, Eurohealth International Sarl was substituted for Ben Venue and Hikma. In June 2016, this case was settled on terms not material to Pfizer. In June 2015, Amneal Pharmaceuticals LLC (Amneal) notified Hospira that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Hospira’s premix version of Precedex and containing allegations that four patents relating to the Precedex premix formulations and their use, all of which expire in 2032, were invalid or not infringed. In August 2015, Hospira filed suit against Amneal in the U.S. District Court for the District of Delaware asserting the validity and infringement of the patents that are the subject of the lawsuit. In December 2015, Fresenius Kabi USA LLC (Fresenius) notified Hospira that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Hospira’s premix version of Precedex and containing allegations that four patents relating to the Precedex premix formulations and their use, all of which expire in 2032, were invalid or not infringed. In January 2016, Hospira filed suit against Fresenius in the U.S. District Court for the Northern District of Illinois asserting the validity and infringement of the patents that are the subject of the lawsuit. In August 2016, Par Sterile Products, LLC (Par) notified Hospira that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Hospira’s premix version of Precedex and containing allegations that four patents relating to the Precedex premix formulations and their use, all of which expire in 2032, were invalid or not infringed. In September 2016, Hospira filed suit against Par in the U.S. District Court for the District of Delaware asserting the validity and infringement of the patents that are the subject of the lawsuit. In December 2016, the case was stayed pending the outcome of Hospira’s suit against Amneal (including all appeals). Toviaz (fesoterodine) We have an exclusive, worldwide license to market Toviaz from UCB Pharma GmbH (UCB), which owns the patents relating to Toviaz. Beginning in May 2013, several generic drug 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 FDA’s list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly referred to as the “Orange Book”. Beginning in June 2013, we filed actions against all of those generic drug manufacturers in the U.S. District Court for the District of Delaware, asserting the infringement of five of the 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. In June and July 2015, we settled with four of the generic defendants. The trial relating to the four remaining defendants occurred in July 2015. In April 2016, the District Court held that the patents that were the subject of the lawsuit were valid and infringed. The defendants’ deadline to appeal this decision expired in June 2016. In December 2014, Mylan Pharmaceuticals, Inc. (Mylan Pharmaceuticals) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version 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. In January 2015, we filed an action against Mylan Pharmaceuticals in the U.S. District Court for the District of Delaware, asserting the infringement of five of the 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. In January 2017, the District Court issued a verdict finding that the five patents that are the subject of the lawsuit are valid and infringed. In August 2017, the District Court issued a written decision consistent with the verdict, finding the five patents valid and infringed. In December 2016, Torrent Pharmaceuticals, Ltd. (Torrent) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version 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. In February 2017, we filed an action against Torrent in the U.S. District Court for the District of Delaware, asserting the infringement of the same five patents that are the subject of the action against Mylan Pharmaceuticals. Xeljanz (tofacitinib) In February 2017, we brought a patent-infringement action against MicroLabs USA Inc. and MicroLabs Ltd. (collectively, MicroLabs) in the U.S. District Court for the District of Delaware asserting the infringement and validity of three patents challenged by MicroLabs in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 5 mg tablets. Of the three patents that are the subject of the lawsuit, one covers the active ingredient and expires in December 2020, the second covers an enantiomer of tofacitinib and expires in 2022, and the third covers a polymorphic form of tofacitinib and expires in 2023. Three other patents for Xeljanz expiring in December 2020 have not been challenged by MicroLabs. Separately, also in February 2017, we brought a patent-infringement action against Sun Pharmaceutical Industries Ltd. in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patent covering a polymorphic form of tofacitinib, expiring in 2023, that was challenged by Sun Pharmaceutical Industries Ltd. in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In March 2017, we brought a patent-infringement action against Zydus Pharmaceuticals (USA) Inc. and Cadila Healthcare Ltd. (collectively, Zydus) in the U.S. District Court for the District of Delaware asserting the infringement and validity of the same three patents that are the subject of the action against MicroLabs, which Zydus challenged in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 5 mg tablets. Also in March 2017, we brought separate actions in the U.S. District Court for the District of Delaware against Prinston Pharmaceutical Inc., Zhejiang Huahai Pharmaceutical Co., Ltd., Huahai US Inc. and Solco Healthcare US, LLC (collectively Prinston) and against Breckenridge Pharmaceutical Inc., Pensa Pharma S.A. and Laboratorios Del Dr. Esteve, S.A. (collectively Breckenridge) on the two patents expiring in 2022 and 2023, respectively, that were challenged by Prinston and Breckenridge in their respective abbreviated new drug applications seeking approval to market generic versions of tofacitinib 5 mg tablets. Xtandi (enzalutamide) In December 2016, Medivation and Medivation Prostate Therapeutics, Inc. (collectively, the Medivation Group); Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc. (collectively, Astellas); and The Regents of the University of California filed patent-infringement suits in the U.S. District Court for the District of Delaware against Actavis Laboratories FL, Inc. and Actavis LLC (collectively, Actavis); Zydus; and Apotex Inc. and Apotex Corp. (collectively, Apotex) in connection with those companies’ respective abbreviated new drug applications filed with the FDA for approval to market generic versions of enzalutamide. The generic manufacturers are challenging patents, which expire as early as 2026, covering enzalutamide and treatments for prostate cancer. In May 2017, the Medivation Group filed a patent-infringement suit against Roxane Laboratories Inc. (Roxane) in the same court in connection with Roxane’s abbreviated new drug application with the FDA for approval to market a generic version of enzalutamide. Matters Involving Our Collaboration/Licensing Partners Nexium 24HR (esomeprazole) We have an exclusive license from AstraZeneca PLC (AstraZeneca) to market in the U.S. the OTC version of Nexium (Nexium 24HR). Beginning in October 2014, Actavis Laboratories FL, Inc., and subsequently Andrx Labs, LLC (Andrx), Perrigo Company plc (Perrigo), Lupin Limited and, in October 2015, Dr. Reddy’s Laboratories, Inc. & Ltd. (Dr. Reddy’s) notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Nexium 24HR prior to the expiration of one or more of AstraZeneca’s patents listed in the Orange Book for Nexium 24HR. From November 2014 through November 2015, AstraZeneca filed actions against each of Actavis Laboratories FL, Inc., Andrx, Perrigo, Lupin Limited and Dr. Reddy’s in the U.S. District Court for the District of New Jersey asserting the infringement of the challenged patents. In March and June 2017, the cases against Actavis/ Andrx and Perrigo, respectively, were settled on terms not material to Pfizer. We are not a party to AstraZeneca’s patent-infringement actions. Toviaz (fesoterodine)––Inter-Partes Reviews In January 2016, Mylan Pharmaceuticals and Mylan Laboratories filed petitions with the U.S. Patent and Trademark Office requesting inter partes reviews of five of the patents covering fesoterodine, the active ingredient in 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. The patents are owned by UCB, and we have an exclusive, worldwide license to market Toviaz from UCB. In July 2016, the Patent Trial and Appeal Board agreed to institute inter partes reviews of all five patents. Amerigen Pharmaceuticals Limited, Alembic Pharmaceuticals Limited and Torrent Pharmaceuticals Limited have joined the inter partes reviews. In July 2017, the U.S. Patent and Trademark Office issued decisions upholding all five patents. Eliquis In February, March, and April 2017, twenty-five generic companies sent BMS Paragraph-IV certification letters informing BMS that they had filed abbreviated new drug applications seeking approval of generic versions of Eliquis, challenging the validity and infringement of one or more of the three patents listed in the Orange Book for Eliquis. The patents currently are set to expire in 2019, 2023, and 2031. Eliquis has been jointly developed and is being commercialized by BMS and Pfizer. In April 2017, BMS and Pfizer filed patent-infringement actions against all generic filers in the U.S. District Court for the District of Delaware and the U.S. District Court for the District of West Virginia, asserting that each of the generic companies’ proposed products would infringe each of the patent(s) that each generic filer challenged. Some generic filers challenged only the 2031 patent, some challenged both the 2031 and 2023 patent, and one generic company challenged all three patents. Bavencio (avelumab) In July 2017, BMS, E.R. Squibb & Sons LLC, Ono Pharmaceutical Co. Ltd., and Tasuku Honjo brought a patent-infringement action in the U.S. District Court for the District of Delaware against Pfizer, Merck KGaA, and EMD Serono, alleging that Bavencio (avelumab) infringes one patent relating to methods for treating tumors with anti-PD-L1 antibodies, which expires in 2023. Actions In Which We Are The Defendant Inflectra (infliximab-dyyb) In March 2015, Janssen and New York University, together, brought a patent-infringement action in the U.S. District Court for the District of Massachusetts against Hospira, Celltrion Healthcare Co. Ltd. and Celltrion Inc. alleging that infliximab-dyyb, to be marketed by Hospira in the U.S. under the brand name Inflectra, would infringe six patents relating to infliximab, its manufacture and use. Claims with respect to four of the patents have since been dismissed by the plaintiffs, leaving two patents at issue in the ongoing action: the infliximab antibody patent and a patent relating to cell culture media. In August 2016, the U.S. District Court for the District of Massachusetts ruled that the antibody patent was invalid, and Janssen has appealed that ruling to the Court of Appeals for the Federal Circuit. 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 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 July 2, 2017 , approximately 56,400 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 was acquired by Pfizer in 2000 and is a wholly-owned subsidiary of Pfizer. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means of resolving, these claims. Numerous lawsuits are pending against Pfizer in various federal and state courts seeking damages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly hazardous materials sold by Pfizer and certain of its previously owned subsidiaries. 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. 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. Almost all plaintiffs have voluntarily dismissed their actions. The Multi-District Litigation, as well as the coordinated state court proceedings in California, has been administratively stayed. • 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 in the Orange Book, enforcing certain patents for Effexor XR and entering into a litigation settlement agreement with a generic drug 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. In October 2014, the District Court dismissed the direct purchaser plaintiffs’ claims based on the litigation settlement agreement but declined to dismiss the other direct purchaser plaintiff claims. In January 2015, the District Court entered partial final judgments as to all settlement agreement claims, including those asserted by direct purchasers and end-payer plaintiffs, which plaintiffs have appealed to the U.S. Court of Appeals for the Third Circuit. Motions to dismiss remain pending as to the end-payer plaintiffs’ remaining claims. 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. A number of plaintiffs have voluntarily dismissed their actions. In April 2016, the District Court granted our motion for summary judgment, dismissing the claims of almost all of the remaining plaintiffs. In May 2016, the plaintiffs appealed the District Court’s decision to the U.S. Court of Appeals for the Third Circuit. In June 2017, the U.S. Court of Appeals for the Third Circuit affirmed the District Court’s decision. Lipitor • Antitrust Actions Beginning in November 2011, purported class actions relating to Lipitor were filed in various federal courts against, among others, Pfizer, certain affiliates of Pfizer, and, in most of the actions, Ranbaxy, Inc. (Ranbaxy) and certain affiliates of Ranbaxy. 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 September 2013 and 2014, the District Court dismissed with prejudice the claims by direct purchasers. In October and November 2014, the District Court dismissed with prejudice the claims of all other Multi-District Litigation plaintiffs. All plaintiffs have appealed the District Court’ |
Segment, Geographic and Other R
Segment, Geographic and Other Revenue Information | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Other Revenue Information | Segment, Geographic and Other Revenue Information A. Segment Information We manage our commercial operations through two distinct business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). The IH and EH segments are each led by a single manager. Each operating segment has responsibility for its commercial activities and for certain IPR&D projects for new investigational products and additional indications for in-line products that generally have achieved proof-of-concept. Each business has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the two operating segments, among other factors, for performance evaluation and resource allocation. We regularly review our segments and the approach used by management for performance evaluation and resource allocation. As described in Note 1A , acquisitions and divestitures have impacted our results of operations in 2017 and 2016. Operating Segments Some additional information about our business segments follows: IH Segment EH Segment IH focuses on developing and commercializing novel, value-creating medicines and vaccines that significantly improve patients’ lives, as well as products for consumer healthcare. EH includes legacy brands that have lost or will soon lose market exclusivity in both developed and emerging markets, branded generics, generic sterile injectable products, biosimilars, select branded products including anti-infectives and, through February 2, 2017, HIS. EH also includes an R&D organization, as well as our contract manufacturing business. Leading brands include: - Prevnar 13 /Prevenar 13 - Xeljanz - Eliquis - Lyrica (U.S., Japan and certain other markets) - Enbrel (outside the U.S. and Canada) - Viagra (U.S. and Canada) - Ibrance - Xtandi - Several OTC consumer healthcare products (e.g., Advil and Centrum ) Leading brands include: - Lipitor - Premarin family - Norvasc - Lyrica (Europe, Russia, Turkey, Israel and Central Asia countries) - Celebrex - Inflectra/Remsima - Several sterile injectable products Other Costs and Business Activities Certain pre-tax costs are not allocated to our operating segment results, such as costs associated with the following: • WRD, which is generally responsible for research projects for our IH business until proof-of-concept is achieved and then for transitioning those projects to the IH segment via the GPD organization for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. The WRD 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, including EH R&D projects. WRD is also responsible for facilitating all regulatory submissions and interactions with regulatory agencies, including all safety-event activities. • GPD, which is generally responsible for the clinical development of assets that are in clinical trials for our WRD and Innovative portfolios. GPD also provides technical support and other services to Pfizer R&D projects. • Corporate, representing platform functions (such as worldwide technology, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement) and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments. Effective in the first quarter of 2017 , Corporate also includes the costs associated with our Pfizer Medical organization (Medical), previously reported as part of Other Business Activities. Medical 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, and partnerships with global public health and medical associations. • Other unallocated costs, representing overhead expenses associated with our manufacturing and commercial operations that are not directly assessed to an operating segment, as business unit (segment) management does not manage these costs (which include manufacturing variances associated with production). • 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 PP&E; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items can include, but are not limited to, 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 both 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 $169 billion as of July 2, 2017 and approximately $172 billion as of December 31, 2016 . Selected Income Statement Information The following table provides selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 7,671 $ 7,105 $ 4,666 $ 4,179 EH 5,226 6,042 2,787 3,198 Total reportable segments 12,896 13,147 7,453 7,377 Other business activities (b), (c) — — (758 ) (674 ) Reconciling Items: Corporate (c) — — (1,222 ) (1,289 ) Purchase accounting adjustments (c) — — (1,201 ) (984 ) Acquisition-related costs (c) — — (68 ) (202 ) Certain significant items (d) — — (191 ) (1,506 ) Other unallocated — — (199 ) (312 ) $ 12,896 $ 13,147 $ 3,815 $ 2,410 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 15,086 $ 14,139 $ 9,316 $ 8,282 EH 10,590 12,013 5,793 6,857 Total reportable segments 25,675 26,152 15,109 15,139 Other business activities (b), (c) — — (1,445 ) (1,343 ) Reconciling Items: Corporate (c) — — (2,566 ) (2,680 ) Purchase accounting adjustments (c) — — (2,373 ) (2,137 ) Acquisition-related costs (c) — — (192 ) (317 ) Certain significant items (d) — — (348 ) (2,144 ) Other unallocated — — (418 ) (548 ) $ 25,675 $ 26,152 $ 7,767 $ 5,971 (a) Income from continuing operations before provision for taxes on income. IH’s earnings in the second quarter and first six months of 2017 include d ividend income of $114 million and $157 million , respectively, from our investment in ViiV. For additional information, see Note 4. (b) Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017 , Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $34 million and $61 million of costs from Other Business Activities to Corporate in the second quarter and first six months of 2016 , respectively, to conform to the current period presentation. (c) For a description, see the “Other Costs and Business Activities” section above. (d) Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Earnings in the second quarter of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $85 million , (ii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $28 million , (iii) charges for business and legal entity alignment of $17 million and (iv) other charges of $61 million . For additional information, see Note 2B, Note 3 and Note 4. For Earnings in the second quarter of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $231 million , (ii) charges for certain legal matters of $261 million , (iii) certain asset impairment charges of $816 million , (iv) charges for business and legal entity alignment of $60 million and (v) other charges of $138 million . For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $163 million , (ii) charges for certain legal matters of $8 million , (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $64 million , (iv) charges for business and legal entity alignment of $38 million and (v) other charges of $74 million . For additional information, see Note 2B , Note 3 and Note 4 . For Earnings in the first six months of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $368 million , (ii) charges for certain legal matters of $546 million , (iii) certain asset impairment charges of $947 million , (iv) charges for business and legal entity alignment of $111 million and (v) other charges of $172 million . For additional information, see Note 3 and Note 4 . Equity in the net income of investees accounted for by the equity method is not significant for any of our operating segments. The operating segment information does not purport to represent the revenues, costs and income from continuing operations before provision for taxes on income that each of our operating segments would have recorded had each segment operated as a standalone company during the periods presented. B. Geographic Information As described in Note 1A , acquisitions and divestitures have impacted our results of operations in 2017 and 2016. The following table provides revenues by geographic area: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, % Change July 2, July 3, % Change U.S. $ 6,345 $ 6,370 — $ 12,982 $ 13,031 — Developed Europe (a) 2,124 2,418 (12 ) 4,145 4,764 (13 ) Developed Rest of World (b) 1,611 1,713 (6 ) 3,165 3,229 (2 ) Emerging Markets (c) 2,815 2,646 6 5,382 5,128 5 Revenues $ 12,896 $ 13,147 (2 ) $ 25,675 $ 26,152 (2 ) (a) Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion and $1.8 billion in the second quarter of 2017 and 2016 , respectively, and $3.3 billion and $3.6 billion in the first six months of 2017 and 2016 , respectively. (b) Developed Rest of World region includes the following markets: Japan, Canada, Australia, South Korea and New Zealand. (c) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Africa, Eastern Europe, Central Europe, the Middle East and Turkey. C. Other Revenue Information Significant Product Revenues As described in Note 1A , acquisitions and divestitures have impacted our results of operations in 2017 and 2016. The following table provides detailed revenue information: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, PFIZER INNOVATIVE HEALTH (IH) (a) $ 7,671 $ 7,105 $ 15,086 $ 14,139 Internal Medicine $ 2,412 $ 2,190 $ 4,789 $ 4,314 Lyrica IH (b) 1,101 1,048 2,231 2,059 Eliquis alliance revenues and direct sales 605 404 1,169 776 Viagra IH (c) 255 300 505 600 Chantix/Champix 248 213 487 434 Toviaz 62 67 125 131 BMP2 57 61 119 112 All other Internal Medicine 84 97 153 203 Vaccines $ 1,270 $ 1,365 $ 2,735 $ 2,935 Prevnar 13/Prevenar 13 1,154 1,258 2,547 2,766 FSME/IMMUN-TicoVac 50 42 76 69 All other Vaccines 66 65 112 100 Oncology $ 1,589 $ 1,101 $ 2,935 $ 2,102 Ibrance 853 514 1,532 942 Sutent 279 285 529 563 Xalkori 155 137 296 275 Xtandi alliance revenues 141 — 272 — Inlyta 88 108 172 209 Bosulif 59 41 106 78 All other Oncology 14 16 28 34 Inflammation & Immunology (I&I) $ 992 $ 999 $ 1,863 $ 1,947 Enbrel (Outside the U.S. and Canada) 617 766 1,205 1,500 Xeljanz 336 217 587 414 Eucrisa 9 — 17 — All other I&I 31 16 54 33 Rare Disease $ 562 $ 614 $ 1,069 $ 1,182 BeneFIX 153 183 302 367 Refacto AF/Xyntha 139 139 269 268 Genotropin 135 152 238 277 Somavert 61 59 117 114 All other Rare Disease 74 81 141 156 Consumer Healthcare $ 846 $ 837 $ 1,694 $ 1,659 PFIZER ESSENTIAL HEALTH (EH) (d) $ 5,226 $ 6,042 $ 10,590 $ 12,013 Legacy Established Products (LEP) (e) $ 2,707 $ 2,864 $ 5,313 $ 5,664 Lipitor 445 461 849 872 Premarin family 245 251 473 507 Norvasc 231 240 458 476 EpiPen 90 93 171 190 Xalatan/Xalacom 81 94 158 182 Relpax 60 87 143 165 Zithromax 62 67 140 147 Effexor 73 67 139 137 Zoloft 69 77 137 156 Xanax 52 55 107 108 All other LEP 1,300 1,371 2,538 2,723 Sterile Injectable Pharmaceuticals (SIP) (f) $ 1,444 $ 1,497 $ 2,996 $ 3,021 Medrol 123 115 243 228 Sulperazon 110 105 232 201 Fragmin 71 82 142 160 Precedex 67 66 132 135 Tygacil 57 59 131 134 All other SIP 1,016 1,070 2,116 2,162 Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Peri-LOE Products (g) $ 782 $ 1,111 $ 1,604 $ 2,201 Celebrex 178 183 353 355 Lyrica EH (b) 154 214 294 431 Vfend 101 162 208 319 Viagra EH (c) 93 101 183 197 Pristiq 46 194 161 372 Zyvox 75 114 152 240 Revatio 67 74 131 140 All other Peri-LOE Products 68 69 121 146 Biosimilars (h) $ 121 $ 78 $ 226 $ 145 Inflectra/Remsima 94 45 172 81 All other Biosimilars 27 33 54 64 Pfizer CentreOne (i) $ 171 $ 196 $ 353 $ 384 Hospira Infusion Systems (HIS) (j) $ — $ 295 $ 97 $ 599 Revenues $ 12,896 $ 13,147 $ 25,675 $ 26,152 Total Lyrica (b) $ 1,254 $ 1,261 $ 2,526 $ 2,490 Total Viagra (c) $ 349 $ 401 $ 687 $ 796 Total Alliance revenues $ 715 $ 376 $ 1,370 $ 736 (a) The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare. Through December 31, 2016, includes Duavive/Duavee and Viviant (recorded in All other Internal Medicine in 2016), which were transferred from Innovative Health to Essential Health effective January 1, 2017 (recorded in All other LEP (EH) beginning January 1, 2017), in order to align these products with our management of the women’s health portfolio within EH. (b) Lyrica revenues from all of Europe, Russia, Turkey, Israel and Central Asia countries are included in Lyrica EH. All other Lyrica revenues are included in Lyrica IH. Total Lyrica revenues represent the aggregate of worldwide revenues from Lyrica IH and Lyrica EH. (c) Viagra revenues from the U.S. and Canada are included in Viagra IH. All other Viagra revenues are included in Viagra EH. Total Viagra revenues represent the aggregate of worldwide revenues from Viagra IH and Viagra EH. (d) The EH business encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, HIS (through February 2, 2017), Biosimilars and Pfizer CentreOne and includes all legacy Hospira commercial operations. (e) Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). Effective January 1, 2017, All other LEP includes Duavive/Duavee and Viviant, which were transferred from Innovative Health (recorded in All other Internal Medicine (IH) in 2016), in order to align these products with our management of the women’s health portfolio within EH. See note (a) above. (f) Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products). (g) Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; Viagra in all countries (excluding the U.S. and Canada); and worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra. (h) Biosimilars include Inflectra/Remsima (biosimilar infliximab) in the U.S. and certain international markets, Nivestim (biosimilar filgrastim) in certain European, Asian and Africa/Middle Eastern markets and Retacrit (biosimilar epoetin zeta) in certain European and Africa/Middle Eastern markets. (i) Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements, including with Zoetis. (j) |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation See the Glossary of Defined Terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout the condensed consolidated financial statements and related notes of this Quarterly Report on Form 10-Q. We prepared the condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial information included in our condensed consolidated financial statements for subsidiaries operating outside the U.S. is as of and for the three and six months ended May 28, 2017 and May 29, 2016 . The financial information included in our condensed consolidated financial statements for U.S. subsidiaries is as of and for the three and six months ended July 2, 2017 and July 3, 2016 . 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 interim financial statements include all normal and recurring adjustments that are considered necessary for the fair statement 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 2016 |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In the fourth quarter of 2016, we adopted a new accounting standard for certain elements of the accounting for share-based payments as of January 1, 2016. Specifically, the new standard requires excess tax benefits or deficiencies (including tax benefits of dividend equivalents) of share-based compensation to be recognized as a component of the Provision for taxes on income , whereas excess tax benefits or deficiencies previously were recognized in Additional paid-in capital . The net tax benefit for the Company was $28 million for the second quarter of 2016 and $50 million for the first six months of 2016 . Also, in the diluted net earnings per share calculation, when applying the treasury stock method for shares that could be repurchased, the assumed proceeds no longer include the amount of excess tax benefit. Another element of the new accounting standard requires that we now present excess tax benefits as operating activities in our consolidated statements of cash flow. We elected to adopt this presentation on a prospective basis as of January 1, 2016. Additionally, cash paid by us when directly withholding shares for tax-withholding purposes is now a cash outflow from financing activities. This reclassification was required to be adopted retrospectively. As a result, $51 million of cash outflows for the first six months of 2016 was reclassified from operating activities to financing activities in the condensed consolidated statement of cash flows. For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards included in our 2016 Financial Report. We adopted a new standard as of January 1, 2017 that amended guidance on the assessment of whether an entity is the primary beneficiary of a variable interest entity. Under this new guidance, when evaluating whether an entity is the primary beneficiary, a single decision maker must consider its indirect interest held through related parties under common control proportionately. There was no material impact to our condensed consolidated financial statements from adopting this standard. |
Restructuring Charges and Oth23
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Components of Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | The following table provides the components of costs associated with acquisitions and cost-reduction/productivity initiatives: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Restructuring charges (a) : Employee terminations $ 10 $ 93 $ 29 $ 117 Asset impairments — 16 24 18 Exit costs 4 31 6 35 Total restructuring charges 14 141 59 170 Transaction costs (b) 6 36 18 60 Integration costs (c) 50 139 151 227 Restructuring charges and certain acquisition-related costs 70 316 228 457 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 21 52 35 99 Research and development expenses — 1 — 5 Total additional depreciation––asset restructuring 21 53 35 104 Implementation costs recorded in our condensed consolidated statements of income as follows (e) : Cost of sales 36 38 51 81 Selling, informational and administrative expenses 15 20 24 33 Research and development expenses 11 5 17 9 Other (income)/deductions––net — 1 — 1 Total implementation costs 62 64 93 124 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 153 $ 433 $ 356 $ 685 (a) In the second quarter and first six months of 2017 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of mainly Anacor for the second quarter of 2017 and mainly Anacor and Medivation for the first six months of 2017. In the second quarter and first six months of 2016 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions. In the six months ended July 2, 2017 , Employee terminations primarily include pension and postretirement benefit costs, partially offset by revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. The restructuring activities for 2017 are associated with the following: • For the second quarter of 2017 , IH ( $3 million income); EH ( $8 million ); WRD/GPD ( $3 million ); manufacturing operations ( $1 million income); and Corporate ( $7 million ). • For the first six months of 2017 , IH ( $6 million ); EH ( $10 million income); WRD/GPD ( $13 million ); manufacturing operations ( $24 million ); and Corporate ( $26 million ). The restructuring activities for 2016 are associated with the following: • For the second quarter of 2016 , IH ( $5 million ); EH ( $11 million income); WRD/GPD ( $49 million ); manufacturing operations ( $59 million ); and Corporate ( $39 million ). • For the first six months of 2016 , IH ( $14 million ); EH ( $8 million income); WRD/GPD ( $52 million ); manufacturing operations ( $73 million ); and Corporate ( $40 million ). (b) Transaction costs represent external costs for banking, legal, accounting and other similar services, virtually all of which in the second quarter and first six months of 2017 are directly related to our acquisition of Medivation. Transaction costs in the second quarter of 2016 were mostly related to the Anacor acquisition and in the first six months of 2016 , were mostly related to the Anacor acquisition and our terminated transaction with Allergan. (c) 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. In the second quarter and first six months of 2017 , integration costs were primarily related to our acquisitions of Hospira and Medivation, including a net gain of $12 million related to the settlement of the Hospira U.S. qualified defined benefit pension plan (see Note 10 ). In the second quarter and first six months of 2016 , integration costs were primarily related to our acquisition of Hospira and the terminated transaction with Allergan. (d) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (e) |
Schedule of Components of and Changes in Restructuring Accruals | The following table provides the components of and changes in our restructuring accruals: (MILLIONS OF DOLLARS) Employee Termination Costs Asset Impairment Charges Exit Costs Accrual Balance, December 31, 2016 (a) $ 1,547 $ — $ 36 $ 1,583 Provision 29 24 6 59 Utilization and other (b) (293 ) (24 ) (6 ) (323 ) Balance, July 2, 2017 (c) $ 1,282 $ — $ 36 $ 1,319 (a) Included in Other current liabilities ( $863 million ) and Other noncurrent liabilities ( $720 million ). (b) Includes adjustments for foreign currency translation. (c) Included in Other current liabilities ( $602 million ) and Other noncurrent liabilities ( $717 million |
Other (Income)_Deductions - N24
Other (Income)/Deductions - Net (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income)/Deductions - Net | The following table provides components of Other (income)/deductions––net : Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Interest income (a) $ (94 ) $ (122 ) $ (175 ) $ (234 ) Interest expense (a) 312 292 621 598 Net interest expense 218 170 446 363 Royalty-related income (b) (105 ) (274 ) (191 ) (461 ) Certain legal matters, net (c) 3 261 11 534 Net gains on asset disposals (d) (62 ) (31 ) (194 ) (39 ) Loss on sale of HIS net assets (e) 28 — 64 — Certain asset impairments (f) — 816 13 947 Business and legal entity alignment costs (g) 17 60 38 111 Other, net (h) (164 ) 66 (254 ) (57 ) Other (income)/deductions––net $ (66 ) $ 1,068 $ (68 ) $ 1,398 (a) Interest income decreased in the second quarter and first six months of 2017 , primarily due to lower investment returns driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2017 , primarily as a result of higher short-term interest rates, offset, in part, by the retirement of high-coupon debt and the issuance of new low-coupon debt. (b) Royalty-related income decreased in the second quarter and first six months of 2017 , primarily due to lower royalty income for Enbrel of $157 million and $275 million , respectively, resulting from the expiration on October 31, 2016 of the 36 -month royalty period under the collaboration agreement for Enbrel in the U.S. and Canada (the collaboration period under the agreement expired on October 31, 2013), partially offset by the addition of Xtandi royalty-related income of $51 million and $87 million , respectively. (c) In the second quarter and first six months of 2016 , primarily includes amounts to resolve a Multi-District Litigation relating to Celebrex and Bextra that was pending against the Company in New York federal court for $486 million , partially offset by the reversal of a legal accrual where a loss was no longer deemed probable. In addition, the first six months of 2016 includes a settlement related to a patent matter. (d) In the second quarter of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $64 million ) and gains on sales/out-licensing of product and compound rights (approximately $27 million ), partially offset by a net loss related to the sale of our 40% ownership investment in Teuto, including the extinguishment of a put option for the remaining 60% ownership interest (approximately $30 million ). In the first six months of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $118 million ), gains on sales/out-licensing of product and compound rights (approximately $69 million ) and a gain on sale of property (approximately $50 million ), partially offset by the net loss related to the sale of our investment in Teuto discussed above. In the first six months of 2016 , primarily includes gains on sales/out-licensing of product and compound rights (approximately $31 million ). (e) In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. (f) In the second quarter and first six months of 2016 , primarily includes intangible asset impairment charges of $641 million , reflecting (i) $331 million related to developed technology rights for a generic injectable antibiotic product for the treatment of bacterial infections; (ii) $265 million related to an IPR&D compound for the treatment of anemia; and (iii) $45 million of other IPR&D assets, all acquired in connection with our acquisition of Hospira and associated with the EH segment. In addition, 2016 includes an impairment loss of $130 million in the second quarter and $211 million in the first six months related to Pfizer’s 49% -owned equity-method investment with Hisun in China, Hisun Pfizer, and the first six months of 2016 includes an impairment loss of $50 million related to Pfizer’s 40% -owned equity-method investment in Teuto. For additional information concerning Hisun Pfizer and Teuto, see Note 2D. (g) In the second quarter and first six months of 2017 and 2016 , represents expenses for changes to our infrastructure to align our commercial operations, including costs to internally separate our businesses into distinct legal entities, as well as to streamline our intercompany supply operations to better support each business. (h) In the second quarter and first six months of 2017 , primarily includes, among other things, dividend income of $114 million and $157 million , respectively, from our investment in ViiV. In the second quarter and first six months of 2016 , primarily includes, among other things, $150 million paid to Allergan for reimbursement of Allergan’s expenses associated with the terminated transaction. The first six months of 2016 also includes income of $116 million |
Tax Matters (Tables)
Tax Matters (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Tax Provision (Benefit) on Other Comprehensive Income/(Loss) | The following table provides the components of Tax provision/(benefit) on other comprehensive income: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Foreign currency translation adjustments, net (a) $ (109 ) $ (1 ) $ (130 ) $ (15 ) Unrealized holding losses on derivative financial instruments, net (1 ) (157 ) 2 (193 ) Reclassification adjustments for realized (gains)/losses (88 ) 122 (140 ) 49 (89 ) (35 ) (138 ) (144 ) Unrealized holding gains on available-for-sale securities, net 18 49 55 65 Reclassification adjustments for realized (gains)/losses (7 ) (28 ) 4 (2 ) 11 21 59 63 Benefit plans: actuarial gains/(losses), net 22 (8 ) 22 (8 ) Reclassification adjustments related to amortization 43 47 92 93 Reclassification adjustments related to settlements, net (4 ) 8 8 17 Other (17 ) (9 ) (13 ) (9 ) 43 38 110 93 Benefit plans: prior service (costs)/credits and other, net — 31 — 31 Reclassification adjustments related to amortization (17 ) (15 ) (33 ) (30 ) Reclassification adjustments related to curtailments, net (1 ) — (4 ) (2 ) Other — (2 ) — (1 ) (19 ) 14 (38 ) (3 ) Tax provision/(benefit) on other comprehensive income $ (163 ) $ 36 $ (138 ) $ (5 ) (a) |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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 : Net Unrealized Gains/(Losses) Benefit Plans (MILLIONS OF DOLLARS) Foreign Currency Translation Adjustments Derivative Financial Instruments Available-For-Sale Securities Actuarial Gains/(Losses) Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss) Balance, December 31, 2016 $ (6,659 ) $ 348 $ (131 ) $ (5,473 ) $ 879 $ (11,036 ) Other comprehensive income/(loss) (a) 702 (410 ) 352 276 (66 ) 855 Balance, July 2, 2017 $ (5,957 ) $ (62 ) $ 221 $ (5,198 ) $ 814 $ (10,181 ) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $15 million income for the first six months of 2017 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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) July 2, December 31, Selected financial assets measured at fair value on a recurring basis (a) Trading funds and securities (b) $ 323 $ 325 Available-for-sale debt securities (c) 14,995 18,632 Money market funds 1,021 1,445 Available-for-sale equity securities (c) 488 540 Derivative financial instruments in a receivable position (d) : Interest rate swaps 640 625 Foreign currency swaps 34 79 Foreign currency forward-exchange contracts 144 551 17,645 22,198 Other selected financial assets Held-to-maturity debt securities, carried at amortized cost (c), (e) 1,554 1,242 Restricted stock and private equity securities, carried at cost or at equity-method (e), (f) 1,125 735 2,678 1,977 Total selected financial assets $ 20,323 $ 24,175 Selected financial liabilities measured at fair value on a recurring basis (a) Derivative financial instruments in a liability position (g) : Interest rate swaps $ 166 $ 148 Foreign currency swaps 939 1,374 Foreign currency forward-exchange contracts 254 143 1,359 1,665 Other selected financial liabilities Short-term borrowings: Principal amount 9,523 10,674 Net fair value adjustments related to hedging and purchase accounting 4 24 Net unamortized discounts, premiums and debt issuance costs (14 ) (11 ) Total short-term borrowings, carried at historical proceeds, as adjusted (e) 9,514 10,688 Long-term debt: Principal amount 33,357 30,529 Net fair value adjustments related to hedging and purchase accounting 986 998 Net unamortized discounts, premiums and debt issuance costs (151 ) (130 ) Total long-term debt, carried at historical proceeds, as adjusted (h) 34,191 31,398 43,705 42,085 Total selected financial liabilities $ 45,064 $ 43,750 (a) We use a market approach in valuing financial instruments on a recurring basis. 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 4% that use Level 1 inputs and money market funds that are measured at net asset value. (b) As of July 2, 2017 , trading funds and securities are composed of $244 million of trading equity funds and $78 million of trading debt funds. As of December 31, 2016 , trading funds and securities are composed of $236 million of trading equity funds and $89 million of trading debt funds. As of July 2, 2017 and December 31, 2016 , trading equity funds of $55 million and $71 million , respectively, are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. (c) Gross unrealized gains and losses are not significant. (d) Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $60 million as of July 2, 2017 ; and foreign currency forward-exchange contracts with fair values of $162 million as of December 31, 2016 . (e) 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 July 2, 2017 or December 31, 2016 . 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 priv ate equity securities carried at cost are based on Level 3 inputs. (f) Restricted stock as of July 2, 2017 is primarily composed of $428 million representing the value of 3.2 million shares of ICU Medical common stock received on February 3, 2017, with a fair value of $544 million as of July 2, 2017 based on the closing price of ICU Medical common stock less a discount for lack of marketability. See Note 2B for additional information. Our p rivate equity securities represent investments in the life sciences sector. (g) Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $72 million as of July 2, 2017 ; and foreign currency swaps with fair values of $269 million and foreign currency forward-exchange contracts with fair values of $113 million as of December 31, 2016 . (h) The fair value of our long-term debt (not including the current portion of long-term debt) was $38.5 billion as of July 2, 2017 and $34.9 billion as of December 31, 2016 . The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Long-term debt includes foreign currency long-term borrowings with fair values of $4.5 billion as of July 2, 2017 |
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 our condensed consolidated balance sheets: (MILLIONS OF DOLLARS) July 2, December 31, Assets Cash and cash equivalents $ 749 $ 547 Short-term investments 11,748 15,255 Other current assets (a) 251 567 Long-term investments 7,008 7,116 Other noncurrent assets (b) 568 689 $ 20,323 $ 24,175 Liabilities Short-term borrowings, including current portion of long-term debt $ 9,514 $ 10,688 Other current liabilities (c) 234 443 Long-term debt 34,191 31,398 Other noncurrent liabilities (d) 1,125 1,222 $ 45,064 $ 43,750 (a) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $106 million ), foreign currency swaps ( $8 million ) and foreign currency forward-exchange contracts ( $137 million ) and, as of December 31, 2016 , include interest rate swaps ( $26 million ), foreign currency swaps ( $43 million ) and foreign currency forward-exchange contracts ( $497 million ). (b) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $534 million ), foreign currency swaps ( $27 million ) and foreign currency forward-exchange contracts ( $7 million ) and, as of December 31, 2016 , include interest rate swaps ( $599 million ), foreign currency swaps ( $36 million ) and foreign currency forward-exchange contracts ( $54 million ). (c) As of July 2, 2017 , derivative instruments at fair value include foreign currency swaps ( $5 million ) and foreign currency forward-exchange contracts ( $229 million ) and, as of December 31, 2016 , include interest rate swaps ( $1 million ), foreign currency swaps ( $300 million ) and foreign currency forward-exchange contracts ( $143 million ). (d) As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $166 million ), foreign currency swaps ( $933 million ) and foreign currency forward-exchange contracts ( $26 million ) and, as of December 31, 2016 , include interest rate swaps ( $147 million ) and foreign currency swaps ( $1.1 billion ). |
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | The following table provides the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: Years July 2, (MILLIONS OF DOLLARS) Within 1 Over 1 to 5 Over 5 to 10 Over 10 Total Available-for-sale debt securities Corporate debt (a) $ 2,561 $ 2,613 $ 1,579 $ 16 $ 6,770 Western European, Asian, and other government debt (b) 4,863 377 — — 5,240 Western European, Scandinavian and other government agency debt (b) 1,120 46 6 — 1,172 Government National Mortgage Association and other U.S. government guaranteed asset-backed securities 404 84 — — 488 Other asset-backed debt (c) 302 102 4 — 408 U.S. government debt 328 35 9 — 371 Supranational debt (b) 351 194 — — 546 Held-to-maturity debt securities Time deposits and other 1,275 — 3 — 1,279 Western European government debt (b) 275 — — — 275 Total debt securities $ 11,479 $ 3,452 $ 1,601 $ 16 $ 16,548 (a) Issued by a diverse group of corporations, with a significant concentration in the technology and energy sectors, all of which are investment-grade. (b) Issued by governments, government agencies or supranational entities, as applicable, all of which are high quality. (c) Includes receivable-backed, loan-backed, and mortgage-backed securities, all of which are high quality and in senior positions in the capital structure of the security. Receivable-backed securities are collateralized by credit cards receivables, loan-backed securities are collateralized by senior secured obligations of a diverse pool of companies or student loans, and mortgage-backed securities are collateralized by diversified pools of residential and commercial mortgages. |
Schedule of Principal Amounts and Components of Unsecured Long-term Debt Issued | The following table provides the amounts of senior unsecured long-term debt issued in the first quarter of 2017: Principal As of July 2, 2017 (MILLIONS) Maturity Date Euro U.S. Dollar 3-month EURIBOR + 0.20% floating rate notes (0% floor) March 6, 2019 € 1,250 $ 1,427 0.00% euro notes (a) March 6, 2020 1,000 1,141 0.25% euro notes (a) March 6, 2022 1,000 1,141 1.00% euro notes (a) March 6, 2027 750 856 Total euro long-term debt issued in the first quarter of 2017 (b) € 4,000 $ 4,566 4.20% notes (c) March 17, 2047 1,065 Total long-term debt issued in the first quarter of 2017 (d) $ 5,631 (a) Redeemable at any time, in whole, or in part, at our option prior to 30 to 90 days of maturity date at the comparable German government bond rate, plus 0.15% ; plus, in each case, accrued and unpaid interest. The fixed rate euro notes are also redeemable at our option, in whole, or in part, within 30 to 90 days of maturity date. (b) The weighted-average effective interest rate for the euro notes at issuance was 0.23% . (c) The notes, issued in U.S. dollars in Taiwan, are redeemable, at our option, in whole but not in part, on each March 17 on or after March 17, 2020. (d) The aggregate amount at issuance date was $5,279 million |
Maturity Schedule of Long-term Debt Outstanding | The following table provides the maturity schedule of our Long-term debt outstanding as of July 2, 2017: (MILLIONS OF DOLLARS) 2018 2019 2020 2021 After 2021 Total Maturities $ 484 $ 4,774 $ 1,494 $ 4,418 $ 23,021 $ 34,191 |
Information about Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk | The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Three Months Ended Amount of Gains/(Losses) Recognized in OID (a), (b), (c) Amount of Gains/(Losses) Recognized in OCI (Effective Portion) (a), (d) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) (a), (d) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, July 2, July 3, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign currency swaps $ — $ — $ 149 $ (345 ) $ 225 $ (243 ) Foreign currency forward-exchange contracts (4 ) (2 ) (239 ) (227 ) (17 ) (226 ) Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency forward-exchange contracts — 3 — (3 ) — — Derivative Financial Instruments Not Designated as Hedges: Foreign currency forward-exchange contracts (3 ) (46 ) — — — — Foreign currency swaps (2 ) (3 ) — — — — Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency long-term debt — — (295 ) — — — $ (9 ) $ (48 ) $ (384 ) $ (575 ) $ 208 $ (470 ) Six Months Ended Amount of Gains/(Losses) Recognized in OID (a), (b), (c) Amount of Gains/(Losses) Recognized in OCI (Effective Portion) (a), (d) Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) (a), (d) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, July 2, July 3, Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign currency swaps $ — $ — $ 237 $ (290 ) $ 271 $ (126 ) Foreign currency forward-exchange contracts (6 ) (1 ) (335 ) (558 ) 178 (8 ) Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency forward-exchange contracts — 1 — (15 ) — — Derivative Financial Instruments Not Designated as Hedges: Foreign currency forward-exchange contracts (144 ) (69 ) — — — — Foreign currency swaps (1 ) (4 ) — — — — Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings — — — (26 ) — — Foreign currency long-term debt — — (352 ) — — — $ (151 ) $ (73 ) $ (450 ) $ (889 ) $ 450 $ (134 ) (a) OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income . (b) Includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges (primarily interest rate swaps), as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. (c) There was no significant ineffectiveness for any period presented. (d) For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding losses on derivative financial instruments, net . 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, net. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories, Current | The following table provides the components of Inventories : (MILLIONS OF DOLLARS) July 2, December 31, Finished goods $ 2,911 $ 2,293 Work-in-process 3,860 3,696 Raw materials and supplies 813 793 Inventories (a) $ 7,584 $ 6,783 Noncurrent inventories not included above (b) $ 754 $ 683 (a) The change from December 31, 2016 primarily reflects the build of inventory primarily for and in advance of new product launches and to meet targeted levels for certain products, partially offset by inventory reductions in the normal course of business. (b) Included in Other noncurrent assets |
Schedule of Components of Inventories, Noncurrent | The following table provides the components of Inventories : (MILLIONS OF DOLLARS) July 2, December 31, Finished goods $ 2,911 $ 2,293 Work-in-process 3,860 3,696 Raw materials and supplies 813 793 Inventories (a) $ 7,584 $ 6,783 Noncurrent inventories not included above (b) $ 754 $ 683 (a) The change from December 31, 2016 primarily reflects the build of inventory primarily for and in advance of new product launches and to meet targeted levels for certain products, partially offset by inventory reductions in the normal course of business. (b) Included in Other noncurrent assets |
Identifiable Intangible Asset29
Identifiable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table provides the components of Identifiable intangible assets : July 2, 2017 December 31, 2016 (MILLIONS OF DOLLARS) Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Finite-lived intangible assets Developed technology rights (a) $ 89,531 $ (52,341 ) $ 37,191 $ 83,390 $ (49,650 ) $ 33,740 Brands 2,113 (1,088 ) 1,025 2,092 (1,032 ) 1,060 Licensing agreements and other 1,876 (1,058 ) 818 1,869 (1,005 ) 864 93,520 (54,487 ) 39,033 87,351 (51,687 ) 35,664 Indefinite-lived intangible assets Brands and other 6,902 6,902 6,883 6,883 IPR&D (a) 5,413 5,413 10,101 10,101 12,315 12,315 16,984 16,984 Identifiable intangible assets (b) $ 105,835 $ (54,487 ) $ 51,348 $ 104,335 $ (51,687 ) $ 52,648 (a) The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A ). (b) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization, partially offset by assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A |
Schedule of Indefinite Lived Intangible Assets | The following table provides the components of Identifiable intangible assets : July 2, 2017 December 31, 2016 (MILLIONS OF DOLLARS) Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Finite-lived intangible assets Developed technology rights (a) $ 89,531 $ (52,341 ) $ 37,191 $ 83,390 $ (49,650 ) $ 33,740 Brands 2,113 (1,088 ) 1,025 2,092 (1,032 ) 1,060 Licensing agreements and other 1,876 (1,058 ) 818 1,869 (1,005 ) 864 93,520 (54,487 ) 39,033 87,351 (51,687 ) 35,664 Indefinite-lived intangible assets Brands and other 6,902 6,902 6,883 6,883 IPR&D (a) 5,413 5,413 10,101 10,101 12,315 12,315 16,984 16,984 Identifiable intangible assets (b) $ 105,835 $ (54,487 ) $ 51,348 $ 104,335 $ (51,687 ) $ 52,648 (a) The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A ). (b) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization, partially offset by assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A |
Identifiable Intangible Assets as a Percentage of Total Identifiable Intangible Assets Less Accumulated Amortization, By Segment | Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: July 2, 2017 IH EH WRD Developed technology rights 68 % 32 % — % Brands, finite-lived 74 % 26 % — % Brands, indefinite-lived 71 % 29 % — % IPR&D 81 % 13 % 7 % |
Schedule of Goodwill | The following table provides the components of and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) IH EH Total Balance, December 31, 2016 $ 30,134 $ 24,315 $ 54,449 Additions (a) 89 68 157 Other (b) 207 201 407 Balance, July 2, 2017 $ 30,430 $ 24,584 $ 55,014 (a) IH additions primarily relate to our Medivation acquisition and EH additions relate to our acquisition of AstraZeneca’s small molecule anti-infectives business and both are subject to change until we complete the valuation of assets acquired and liabilities assumed (see Note 2A ). (b) |
Pension and Postretirement Be30
Pension and Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table provides the components of net periodic benefit cost/(income): Three Months Ended Pension Plans U.S. Qualified (a) U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Net periodic benefit cost/(credit): Service cost $ 67 $ 62 $ 6 $ 5 $ 42 $ 43 $ 11 $ 10 Interest cost 159 134 13 11 50 60 23 22 Expected return on plan assets (252 ) (240 ) — — (85 ) (98 ) (9 ) (8 ) Amortization of: Actuarial losses 97 99 12 9 28 24 8 7 Prior service costs (credits) 1 1 — — (1 ) (1 ) (46 ) (41 ) Curtailments 4 1 — — — (1 ) (5 ) (1 ) Settlements (7 ) 16 4 6 2 — — — $ 69 $ 73 $ 35 $ 31 $ 37 $ 27 $ (19 ) $ (11 ) Six Months Ended Pension Plans U.S. Qualified (a) U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Net periodic benefit cost/(credit): Service cost $ 135 $ 125 $ 12 $ 9 $ 83 $ 85 $ 21 $ 20 Interest cost 321 268 28 23 100 119 45 44 Expected return on plan assets (511 ) (481 ) — — (169 ) (196 ) (18 ) (17 ) Amortization of: Actuarial losses 212 199 25 18 56 46 15 15 Prior service costs (credits) 3 2 — (1 ) (2 ) (1 ) (92 ) (82 ) Curtailments 9 3 — — — (1 ) (12 ) (6 ) Settlements 24 31 24 16 3 1 — — $ 193 $ 146 $ 88 $ 66 $ 71 $ 53 $ (40 ) $ (27 ) (a) In April 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pretax settlement gain of $41 million , partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Restructuring charges and certain acquisition-related costs during the second quarter of 2017 (see Note 3 |
Schedule of Employer Contributions to Pension and Postretirement Plans | As of and for the six months ended July 2, 2017 , we contributed and expect to contribute from our general assets as follows: Pension Plans (MILLIONS OF DOLLARS) U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans Contributions from our general assets for the six months ended July 2, 2017 $ 1,095 $ 95 $ 92 $ 109 Expected contributions from our general assets during 2017 (a) $ 1,095 $ 141 $ 167 $ 199 (a) Contributions expected to be made for 2017 are inclusive of amounts contributed during the six months ended July 2, 2017 , including the $1.0 billion |
Earnings Per Common Share Att31
Earnings Per Common Share Attributable to Common Shareholders (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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 Six Months Ended (IN MILLIONS) July 2, July 3, July 2, July 3, EPS Numerator––Basic Income from continuing operations $ 3,077 $ 2,062 $ 6,207 $ 5,110 Less: Net income attributable to noncontrolling interests 5 16 14 25 Income from continuing operations attributable to Pfizer Inc. 3,071 2,046 6,193 5,085 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 3,071 2,046 6,192 5,084 Discontinued operations––net of tax 2 1 1 1 Net income attributable to Pfizer Inc. common shareholders $ 3,073 $ 2,047 $ 6,194 $ 5,085 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 3,071 $ 2,046 $ 6,193 $ 5,084 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions 2 1 1 1 Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 3,073 $ 2,047 $ 6,194 $ 5,085 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,958 6,068 5,982 6,110 Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements (a) 80 81 83 78 Weighted-average number of common shares outstanding––Diluted (a) 6,037 6,149 6,065 6,188 Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans (a), (b) 47 51 47 71 (a) Amounts for the second quarter and first six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016 , as of January 1, 2016, that requires, when applying the treasury stock method for shares that could be repurchased, that the assumed proceeds no longer include the amount of excess tax benefit (see Note 1B ). (b) |
Segment, Geographic and Other32
Segment, Geographic and Other Revenue Information (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table provides selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 7,671 $ 7,105 $ 4,666 $ 4,179 EH 5,226 6,042 2,787 3,198 Total reportable segments 12,896 13,147 7,453 7,377 Other business activities (b), (c) — — (758 ) (674 ) Reconciling Items: Corporate (c) — — (1,222 ) (1,289 ) Purchase accounting adjustments (c) — — (1,201 ) (984 ) Acquisition-related costs (c) — — (68 ) (202 ) Certain significant items (d) — — (191 ) (1,506 ) Other unallocated — — (199 ) (312 ) $ 12,896 $ 13,147 $ 3,815 $ 2,410 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 15,086 $ 14,139 $ 9,316 $ 8,282 EH 10,590 12,013 5,793 6,857 Total reportable segments 25,675 26,152 15,109 15,139 Other business activities (b), (c) — — (1,445 ) (1,343 ) Reconciling Items: Corporate (c) — — (2,566 ) (2,680 ) Purchase accounting adjustments (c) — — (2,373 ) (2,137 ) Acquisition-related costs (c) — — (192 ) (317 ) Certain significant items (d) — — (348 ) (2,144 ) Other unallocated — — (418 ) (548 ) $ 25,675 $ 26,152 $ 7,767 $ 5,971 (a) Income from continuing operations before provision for taxes on income. IH’s earnings in the second quarter and first six months of 2017 include d ividend income of $114 million and $157 million , respectively, from our investment in ViiV. For additional information, see Note 4. (b) Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017 , Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $34 million and $61 million of costs from Other Business Activities to Corporate in the second quarter and first six months of 2016 , respectively, to conform to the current period presentation. (c) For a description, see the “Other Costs and Business Activities” section above. (d) Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Earnings in the second quarter of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $85 million , (ii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $28 million , (iii) charges for business and legal entity alignment of $17 million and (iv) other charges of $61 million . For additional information, see Note 2B, Note 3 and Note 4. For Earnings in the second quarter of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $231 million , (ii) charges for certain legal matters of $261 million , (iii) certain asset impairment charges of $816 million , (iv) charges for business and legal entity alignment of $60 million and (v) other charges of $138 million . For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $163 million , (ii) charges for certain legal matters of $8 million , (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $64 million , (iv) charges for business and legal entity alignment of $38 million and (v) other charges of $74 million . For additional information, see Note 2B , Note 3 and Note 4 . For Earnings in the first six months of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $368 million , (ii) charges for certain legal matters of $546 million , (iii) certain asset impairment charges of $947 million , (iv) charges for business and legal entity alignment of $111 million and (v) other charges of $172 million . For additional information, see Note 3 and Note 4 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table provides selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 7,671 $ 7,105 $ 4,666 $ 4,179 EH 5,226 6,042 2,787 3,198 Total reportable segments 12,896 13,147 7,453 7,377 Other business activities (b), (c) — — (758 ) (674 ) Reconciling Items: Corporate (c) — — (1,222 ) (1,289 ) Purchase accounting adjustments (c) — — (1,201 ) (984 ) Acquisition-related costs (c) — — (68 ) (202 ) Certain significant items (d) — — (191 ) (1,506 ) Other unallocated — — (199 ) (312 ) $ 12,896 $ 13,147 $ 3,815 $ 2,410 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Reportable Segments: IH $ 15,086 $ 14,139 $ 9,316 $ 8,282 EH 10,590 12,013 5,793 6,857 Total reportable segments 25,675 26,152 15,109 15,139 Other business activities (b), (c) — — (1,445 ) (1,343 ) Reconciling Items: Corporate (c) — — (2,566 ) (2,680 ) Purchase accounting adjustments (c) — — (2,373 ) (2,137 ) Acquisition-related costs (c) — — (192 ) (317 ) Certain significant items (d) — — (348 ) (2,144 ) Other unallocated — — (418 ) (548 ) $ 25,675 $ 26,152 $ 7,767 $ 5,971 (a) Income from continuing operations before provision for taxes on income. IH’s earnings in the second quarter and first six months of 2017 include d ividend income of $114 million and $157 million , respectively, from our investment in ViiV. For additional information, see Note 4. (b) Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017 , Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $34 million and $61 million of costs from Other Business Activities to Corporate in the second quarter and first six months of 2016 , respectively, to conform to the current period presentation. (c) For a description, see the “Other Costs and Business Activities” section above. (d) Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Earnings in the second quarter of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $85 million , (ii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $28 million , (iii) charges for business and legal entity alignment of $17 million and (iv) other charges of $61 million . For additional information, see Note 2B, Note 3 and Note 4. For Earnings in the second quarter of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $231 million , (ii) charges for certain legal matters of $261 million , (iii) certain asset impairment charges of $816 million , (iv) charges for business and legal entity alignment of $60 million and (v) other charges of $138 million . For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $163 million , (ii) charges for certain legal matters of $8 million , (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $64 million , (iv) charges for business and legal entity alignment of $38 million and (v) other charges of $74 million . For additional information, see Note 2B , Note 3 and Note 4 . For Earnings in the first six months of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $368 million , (ii) charges for certain legal matters of $546 million , (iii) certain asset impairment charges of $947 million , (iv) charges for business and legal entity alignment of $111 million and (v) other charges of $172 million . For additional information, see Note 3 and Note 4 |
Schedule of Revenues by Geographic Region | The following table provides revenues by geographic area: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, % Change July 2, July 3, % Change U.S. $ 6,345 $ 6,370 — $ 12,982 $ 13,031 — Developed Europe (a) 2,124 2,418 (12 ) 4,145 4,764 (13 ) Developed Rest of World (b) 1,611 1,713 (6 ) 3,165 3,229 (2 ) Emerging Markets (c) 2,815 2,646 6 5,382 5,128 5 Revenues $ 12,896 $ 13,147 (2 ) $ 25,675 $ 26,152 (2 ) (a) Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion and $1.8 billion in the second quarter of 2017 and 2016 , respectively, and $3.3 billion and $3.6 billion in the first six months of 2017 and 2016 , respectively. (b) Developed Rest of World region includes the following markets: Japan, Canada, Australia, South Korea and New Zealand. (c) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Africa, Eastern Europe, Central Europe, the Middle East and Turkey. |
Schedule of Significant Product Revenues | The following table provides detailed revenue information: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, PFIZER INNOVATIVE HEALTH (IH) (a) $ 7,671 $ 7,105 $ 15,086 $ 14,139 Internal Medicine $ 2,412 $ 2,190 $ 4,789 $ 4,314 Lyrica IH (b) 1,101 1,048 2,231 2,059 Eliquis alliance revenues and direct sales 605 404 1,169 776 Viagra IH (c) 255 300 505 600 Chantix/Champix 248 213 487 434 Toviaz 62 67 125 131 BMP2 57 61 119 112 All other Internal Medicine 84 97 153 203 Vaccines $ 1,270 $ 1,365 $ 2,735 $ 2,935 Prevnar 13/Prevenar 13 1,154 1,258 2,547 2,766 FSME/IMMUN-TicoVac 50 42 76 69 All other Vaccines 66 65 112 100 Oncology $ 1,589 $ 1,101 $ 2,935 $ 2,102 Ibrance 853 514 1,532 942 Sutent 279 285 529 563 Xalkori 155 137 296 275 Xtandi alliance revenues 141 — 272 — Inlyta 88 108 172 209 Bosulif 59 41 106 78 All other Oncology 14 16 28 34 Inflammation & Immunology (I&I) $ 992 $ 999 $ 1,863 $ 1,947 Enbrel (Outside the U.S. and Canada) 617 766 1,205 1,500 Xeljanz 336 217 587 414 Eucrisa 9 — 17 — All other I&I 31 16 54 33 Rare Disease $ 562 $ 614 $ 1,069 $ 1,182 BeneFIX 153 183 302 367 Refacto AF/Xyntha 139 139 269 268 Genotropin 135 152 238 277 Somavert 61 59 117 114 All other Rare Disease 74 81 141 156 Consumer Healthcare $ 846 $ 837 $ 1,694 $ 1,659 PFIZER ESSENTIAL HEALTH (EH) (d) $ 5,226 $ 6,042 $ 10,590 $ 12,013 Legacy Established Products (LEP) (e) $ 2,707 $ 2,864 $ 5,313 $ 5,664 Lipitor 445 461 849 872 Premarin family 245 251 473 507 Norvasc 231 240 458 476 EpiPen 90 93 171 190 Xalatan/Xalacom 81 94 158 182 Relpax 60 87 143 165 Zithromax 62 67 140 147 Effexor 73 67 139 137 Zoloft 69 77 137 156 Xanax 52 55 107 108 All other LEP 1,300 1,371 2,538 2,723 Sterile Injectable Pharmaceuticals (SIP) (f) $ 1,444 $ 1,497 $ 2,996 $ 3,021 Medrol 123 115 243 228 Sulperazon 110 105 232 201 Fragmin 71 82 142 160 Precedex 67 66 132 135 Tygacil 57 59 131 134 All other SIP 1,016 1,070 2,116 2,162 Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) July 2, July 3, July 2, July 3, Peri-LOE Products (g) $ 782 $ 1,111 $ 1,604 $ 2,201 Celebrex 178 183 353 355 Lyrica EH (b) 154 214 294 431 Vfend 101 162 208 319 Viagra EH (c) 93 101 183 197 Pristiq 46 194 161 372 Zyvox 75 114 152 240 Revatio 67 74 131 140 All other Peri-LOE Products 68 69 121 146 Biosimilars (h) $ 121 $ 78 $ 226 $ 145 Inflectra/Remsima 94 45 172 81 All other Biosimilars 27 33 54 64 Pfizer CentreOne (i) $ 171 $ 196 $ 353 $ 384 Hospira Infusion Systems (HIS) (j) $ — $ 295 $ 97 $ 599 Revenues $ 12,896 $ 13,147 $ 25,675 $ 26,152 Total Lyrica (b) $ 1,254 $ 1,261 $ 2,526 $ 2,490 Total Viagra (c) $ 349 $ 401 $ 687 $ 796 Total Alliance revenues $ 715 $ 376 $ 1,370 $ 736 (a) The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare. Through December 31, 2016, includes Duavive/Duavee and Viviant (recorded in All other Internal Medicine in 2016), which were transferred from Innovative Health to Essential Health effective January 1, 2017 (recorded in All other LEP (EH) beginning January 1, 2017), in order to align these products with our management of the women’s health portfolio within EH. (b) Lyrica revenues from all of Europe, Russia, Turkey, Israel and Central Asia countries are included in Lyrica EH. All other Lyrica revenues are included in Lyrica IH. Total Lyrica revenues represent the aggregate of worldwide revenues from Lyrica IH and Lyrica EH. (c) Viagra revenues from the U.S. and Canada are included in Viagra IH. All other Viagra revenues are included in Viagra EH. Total Viagra revenues represent the aggregate of worldwide revenues from Viagra IH and Viagra EH. (d) The EH business encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, HIS (through February 2, 2017), Biosimilars and Pfizer CentreOne and includes all legacy Hospira commercial operations. (e) Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). Effective January 1, 2017, All other LEP includes Duavive/Duavee and Viviant, which were transferred from Innovative Health (recorded in All other Internal Medicine (IH) in 2016), in order to align these products with our management of the women’s health portfolio within EH. See note (a) above. (f) Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products). (g) Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; Viagra in all countries (excluding the U.S. and Canada); and worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra. (h) Biosimilars include Inflectra/Remsima (biosimilar infliximab) in the U.S. and certain international markets, Nivestim (biosimilar filgrastim) in certain European, Asian and Africa/Middle Eastern markets and Retacrit (biosimilar epoetin zeta) in certain European and Africa/Middle Eastern markets. (i) Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements, including with Zoetis. (j) HIS (through February 2, 2017) includes Medication Management Systems products composed of infusion pumps and related software and services, as well as IV Infusion Products, including large volume IV solutions and their associated administration sets. |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($)Operating_Segment | Jul. 03, 2016USD ($) | Sep. 28, 2016$ / shares | Jun. 24, 2016$ / shares | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of business segments | Operating_Segment | 2 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net tax benefit | $ 28 | $ 50 | ||||
Amount reclassified from operating activities | [1] | $ (4,841) | (5,414) | |||
Amount reclassified to financing activities | [1] | $ (7,922) | (5,253) | |||
Medivation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, per share in cash (in dollars per share) | $ / shares | $ 81.50 | |||||
Anacor [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, per share in cash (in dollars per share) | $ / shares | $ 99.25 | |||||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amount reclassified from operating activities | 51 | |||||
Amount reclassified to financing activities | $ 51 | |||||
[1] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira34
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - AstraZeneca (Details) - USD ($) $ in Millions | Dec. 22, 2016 | Jul. 02, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 55,014 | $ 54,449 | |
AstraZeneca [Member] | ||||
Business Acquisition [Line Items] | ||||
Initial payment | $ 552 | |||
Additional payment made for a purchase price adjustment | 3 | |||
Milestone payment | $ 50 | |||
Deferred payment | 175 | |||
Maximum amount of potential milestone payments | 200 | |||
Maximum amount of potential sales-related payments | $ 600 | |||
Term of sales related payments | 9 years | |||
Term of royalty payments | 10 years | |||
Consideration transferred in business acquisition | $ 1,045 | |||
Payments for acquisitions, cash portion | 555 | |||
Contingent consideration assumed | 490 | |||
Identifiable intangible assets | 902 | |||
Other current assets | 96 | |||
Goodwill | 68 | |||
Deferred tax liabilities | 20 | |||
In Process Research and Development [Member] | AstraZeneca [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 219 | |||
Developed Technology Rights [Member] | AstraZeneca [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 683 | |||
Minimum [Member] | AstraZeneca [Member] | ||||
Business Acquisition [Line Items] | ||||
Undiscounted royalty payments | 250 | |||
Maximum [Member] | AstraZeneca [Member] | ||||
Business Acquisition [Line Items] | ||||
Undiscounted royalty payments | $ 425 | |||
[1] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira35
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Medivation (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 28, 2016 | Jul. 02, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | [1] | $ 55,014 | $ 54,449 | |
Medivation [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, per share in cash (in dollars per share) | $ 81.50 | |||
Consideration transferred in business acquisition | $ 14,300 | |||
Consideration transferred in business acquisition, net of cash acquired | 13,900 | |||
Amount payable | $ 365 | |||
Identifiable intangible assets | 13,000 | |||
Goodwill | 5,600 | |||
Deferred tax liabilities | 4,300 | |||
Contingent consideration assumed | 259 | |||
Medivation [Member] | In Process Research and Development [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | 4,300 | |||
Medivation [Member] | Developed Technology Rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 8,700 | |||
Acquired intangible assets, average useful life | 12 years | |||
[1] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira36
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Bamboo Therapeutics (Details) - USD ($) $ in Millions | Aug. 01, 2016 | Apr. 02, 2017 | Oct. 02, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||
Cash payments for acquisition, net of cash acquired | [1] | $ 1,000 | $ 4,616 | ||||
Goodwill | [2] | $ 55,014 | $ 54,449 | ||||
Bamboo Therapeutics [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payment to acquire the remaining equity | $ 150 | ||||||
Maximum amount of potential milestone payments | 495 | ||||||
Total fair value of consideration transferred | 331 | ||||||
Payments for acquisitions, cash portion | 130 | $ 43 | |||||
Cash payments for acquisition, net of cash acquired | 101 | ||||||
Contingent consideration incurred | 157 | ||||||
Fair value of previously held equity interest | 44 | ||||||
Goodwill | 133 | ||||||
Deferred tax liabilities | 93 | ||||||
Other (Income)/Deductions, Net [Member] | Bamboo Therapeutics [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Gain recognized upon acquisition of remaining interest in acquiree | $ 1 | ||||||
In Process Research and Development [Member] | Bamboo Therapeutics [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 325 | ||||||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira37
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Anacor Pharmaceuticals, Inc. (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 24, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||
Cash payments for acquisition, net of cash acquired | [1] | $ 1,000 | $ 4,616 | ||
Goodwill | [2] | $ 55,014 | $ 54,449 | ||
Anacor [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, per share in cash (in dollars per share) | $ 99.25 | ||||
Payments for acquisitions, cash portion | $ 4,900 | ||||
Cash payments for acquisition, net of cash acquired | 4,500 | ||||
Debt assumed | 698 | ||||
IPR&D | 4,900 | ||||
Goodwill | 646 | ||||
Deferred tax liabilities | 346 | ||||
Anacor [Member] | In Process Research and Development [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 4,800 | ||||
[1] | Amounts may not add due to rounding. | ||||
[2] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira38
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Sale of Hospira Infusion Systems Net Assets to ICU Medical, Inc. (EH) (Details) - USD ($) shares in Millions, $ in Millions | Feb. 03, 2017 | Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | [2] | Jan. 05, 2017 | Oct. 06, 2016 | ||
Business Acquisition [Line Items] | ||||||||||
Loss on sale of HIS net assets | [1] | $ 28 | $ 0 | $ 64 | [2] | $ 0 | ||||
HIS [Member] | Disposed of by Sale [Member] | ICU Medical [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration transferred | $ 900 | $ 1,000 | ||||||||
Number of shares received in disposition | 3.2 | |||||||||
Value of shares received from disposition | $ 428 | $ 428 | $ 428 | |||||||
Promissory note | 75 | |||||||||
Cash received from disposition | 200 | |||||||||
Contingent consideration | $ 225 | |||||||||
Ownership percentage | 16.00% | 16.00% | ||||||||
Minimum share transfer restriction term | 18 months | |||||||||
Term of promissory note | 3 years | |||||||||
Loss on sale of HIS net assets | $ 28 | $ 64 | ||||||||
Administrative service period | 24 months | |||||||||
Maximum manufacturing service period | 5 years | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | HIS [Member] | Disposed of by Sale [Member] | ICU Medical [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Interest rate of promissory note in year one | 2.25% | |||||||||
Interest rate of promissory note in year two | 2.50% | |||||||||
Interest rate of promissory note in year three | 2.50% | |||||||||
[1] | In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. | |||||||||
[2] | Amounts may not add due to rounding. |
Acquisitions, Sale of Hospira39
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Collaboration Arrangement (Details) - Other (Income)/Deductions, Net [Member] - Merck KGaA [Member] - Collaborative Arrangement [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 02, 2017 | Jul. 02, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Upfront payments received | $ 90 | |
Collaborator's revenue and expense ownership percentage | 60.00% | |
Company's revenue and expense ownership percentage | 40.00% |
Acquisitions, Sale of Hospira40
Acquisitions, Sale of Hospira Infusion Systems Net Assets, Collaborative Arrangement and Equity-Method Investments - Equity-Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Apr. 03, 2016 | Jul. 03, 2016 | Jun. 30, 2017 | |
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | 49.00% | |||
Equity method investment, impairment | $ 130 | $ 81 | $ 211 | ||
Equity method investments | $ 270 | ||||
Laboratorio Teuto Brasilero [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 40.00% | 40.00% | 40.00% | ||
Equity method investment, impairment | $ 50 | ||||
Loss on disposal of equity method investment | $ 30 | ||||
Laboratorio Teuto Brasilero [Member] | Other (Income)/Deductions, Net [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, impairment | $ 50 | ||||
Laboratorio Teuto Brasilero [Member] | Laboratorio Teuto Brasilero [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 60.00% |
Restructuring Charges and Oth41
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($) $ in Millions | Sep. 03, 2015 | Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2015 | Sep. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Integration costs | [1] | $ 50 | $ 139 | $ 151 | $ 227 | |||
Restructuring charges: | ||||||||
Employee terminations | [2] | 10 | 93 | 29 | 117 | |||
Asset impairments | [2] | 0 | 16 | 24 | 18 | |||
Exit costs | [2] | 4 | 31 | 6 | 35 | |||
Total restructuring charges | [2] | 14 | 141 | 59 | 170 | |||
Transaction costs | [3] | 6 | 36 | 18 | 60 | |||
Integration costs | [1] | 50 | 139 | 151 | 227 | |||
Restructuring charges and certain acquisition-related costs | [4] | 70 | 316 | 228 | 457 | |||
Total additional depreciation––asset restructuring | [5] | 21 | 53 | 35 | 104 | |||
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||||
Total implementation costs | [6] | 62 | 64 | 93 | 124 | |||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 153 | 433 | 356 | 685 | ||||
Cost of Sales [Member] | ||||||||
Restructuring charges: | ||||||||
Total additional depreciation––asset restructuring | [5] | 21 | 52 | 35 | 99 | |||
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||||
Total implementation costs | [6] | 36 | 38 | 51 | 81 | |||
Selling, Informational and Administrative Expenses [Member] | ||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||||
Total implementation costs | [6] | 15 | 20 | 24 | 33 | |||
Research and Development Expense [Member] | ||||||||
Restructuring charges: | ||||||||
Total additional depreciation––asset restructuring | [5] | 0 | 1 | 0 | 5 | |||
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||||
Total implementation costs | [6] | 11 | 5 | 17 | 9 | |||
Other (Income)/Deductions - Net [Member] | ||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||||
Total implementation costs | [6] | 0 | $ 1 | 0 | $ 1 | |||
Enterprise-wide Cost Reduction/Productivity Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred associated with the return of acquired in-process research and development rights | 163 | |||||||
Expected restructuring cost | 900 | 900 | ||||||
Manufacturing Plant Network Optimization [Member] | Enterprise-wide Cost Reduction/Productivity Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected restructuring cost | 750 | 750 | ||||||
Restructuring costs incurred | 91 | 91 | ||||||
Centralization of Corporate and Platform Functions [Member] | Enterprise-wide Cost Reduction/Productivity Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected restructuring cost | 150 | 150 | ||||||
Restructuring costs incurred | $ 73 | 73 | ||||||
Business Integration Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred associated with the return of acquired in-process research and development rights | 85 | |||||||
Hospira [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected integration related costs, period | 3 years | |||||||
Hospira [Member] | Return of Acquired Rights [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred associated with the return of acquired in-process research and development rights | $ 215 | |||||||
Hospira [Member] | Business Integration Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred associated with the return of acquired in-process research and development rights | $ 107 | |||||||
Forecast [Member] | Hospira [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Integration costs | $ 1,000 | |||||||
Restructuring charges: | ||||||||
Integration costs | $ 1,000 | |||||||
[1] | 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. In the second quarter and first six months of 2017 , integration costs were primarily related to our acquisitions of Hospira and Medivation, including a net gain of $12 million related to the settlement of the Hospira U.S. qualified defined benefit pension plan (see Note 10 ). In the second quarter and first six months of 2016 | |||||||
[2] | In the second quarter and first six months of 2017 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of mainly Anacor for the second quarter of 2017 and mainly Anacor and Medivation for the first six months of 2017. In the second quarter and first six months of 2016 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions. In the six months ended July 2, 2017 , Employee terminations primarily include pension and postretirement benefit costs, partially offset by revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. The restructuring activities for 2017 are associated with the following: • For the second quarter of 2017 , IH ( $3 million income); EH ( $8 million ); WRD/GPD ( $3 million ); manufacturing operations ( $1 million income); and Corporate ( $7 million ). • For the first six months of 2017 , IH ( $6 million ); EH ( $10 million income); WRD/GPD ( $13 million ); manufacturing operations ( $24 million ); and Corporate ( $26 million ). The restructuring activities for 2016 are associated with the following: • For the second quarter of 2016 , IH ( $5 million ); EH ( $11 million income); WRD/GPD ( $49 million ); manufacturing operations ( $59 million ); and Corporate ( $39 million ). • For the first six months of 2016 , IH ( $14 million ); EH ( $8 million income); WRD/GPD ( $52 million ); manufacturing operations ( $73 million ); and Corporate ( $40 million ). | |||||||
[3] | Transaction costs represent external costs for banking, legal, accounting and other similar services, virtually all of which in the second quarter and first six months of 2017 are directly related to our acquisition of Medivation. Transaction costs in the second quarter of 2016 were mostly related to the Anacor acquisition and in the first six months of 2016 | |||||||
[4] | Amounts may not add due to rounding. | |||||||
[5] | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | |||||||
[6] | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring Charges and Oth42
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Footnotes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | [1] | $ 14 | $ 141 | $ 59 | $ 170 |
Corporate [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | 7 | 39 | 26 | 40 | |
IH [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | (3) | 5 | 6 | 14 | |
EH [Member] | Operating Segments [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | 8 | (11) | (10) | (8) | |
WRD & GPD [Member] | Segment Reconciling Items [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | 3 | 49 | 13 | 52 | |
Manufacturing operations [Member] | Segment Reconciling Items [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Provision | (1) | 59 | 24 | 73 | |
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net gain related to the settlement | [2] | $ 7 | $ (16) | (24) | $ (31) |
Hospira [Member] | Pension Plan [Member] | U.S. [Member] | Qualified [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Net gain related to the settlement | $ 12 | ||||
[1] | In the second quarter and first six months of 2017 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of mainly Anacor for the second quarter of 2017 and mainly Anacor and Medivation for the first six months of 2017. In the second quarter and first six months of 2016 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions. In the six months ended July 2, 2017 , Employee terminations primarily include pension and postretirement benefit costs, partially offset by revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. The restructuring activities for 2017 are associated with the following: • For the second quarter of 2017 , IH ( $3 million income); EH ( $8 million ); WRD/GPD ( $3 million ); manufacturing operations ( $1 million income); and Corporate ( $7 million ). • For the first six months of 2017 , IH ( $6 million ); EH ( $10 million income); WRD/GPD ( $13 million ); manufacturing operations ( $24 million ); and Corporate ( $26 million ). The restructuring activities for 2016 are associated with the following: • For the second quarter of 2016 , IH ( $5 million ); EH ( $11 million income); WRD/GPD ( $49 million ); manufacturing operations ( $59 million ); and Corporate ( $39 million ). • For the first six months of 2016 , IH ( $14 million ); EH ( $8 million income); WRD/GPD ( $52 million ); manufacturing operations ( $73 million ); and Corporate ( $40 million ). | ||||
[2] | In April 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pretax settlement gain of $41 million , partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Restructuring charges and certain acquisition-related costs during the second quarter of 2017 (see Note 3 |
Restructuring Charges and Oth43
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Restructuring Reserve [Roll Forward] | |||||
Balance, December 31, 2016 | [1] | $ 1,583 | |||
Provision | [2] | $ 14 | $ 141 | 59 | $ 170 |
Utilization and other | [3] | (323) | |||
Balance, July 2, 2017 | [4] | 1,319 | 1,319 | ||
Employee Termination Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, December 31, 2016 | [1] | 1,547 | |||
Provision | 29 | ||||
Utilization and other | [3] | (293) | |||
Balance, July 2, 2017 | [4] | 1,282 | 1,282 | ||
Asset Impairment Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, December 31, 2016 | [1] | 0 | |||
Provision | 24 | ||||
Utilization and other | [3] | (24) | |||
Balance, July 2, 2017 | [4] | 0 | 0 | ||
Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance, December 31, 2016 | [1] | 36 | |||
Provision | 6 | ||||
Utilization and other | [3] | (6) | |||
Balance, July 2, 2017 | [4] | $ 36 | $ 36 | ||
[1] | Included in Other current liabilities ( $863 million ) and Other noncurrent liabilities ( $720 million | ||||
[2] | In the second quarter and first six months of 2017 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as our acquisitions of mainly Anacor for the second quarter of 2017 and mainly Anacor and Medivation for the first six months of 2017. In the second quarter and first six months of 2016 , restructuring charges are largely associated with cost-reduction and productivity initiatives not associated with acquisitions. In the six months ended July 2, 2017 , Employee terminations primarily include pension and postretirement benefit costs, partially offset by revisions of our estimates of severance benefits. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. The restructuring activities for 2017 are associated with the following: • For the second quarter of 2017 , IH ( $3 million income); EH ( $8 million ); WRD/GPD ( $3 million ); manufacturing operations ( $1 million income); and Corporate ( $7 million ). • For the first six months of 2017 , IH ( $6 million ); EH ( $10 million income); WRD/GPD ( $13 million ); manufacturing operations ( $24 million ); and Corporate ( $26 million ). The restructuring activities for 2016 are associated with the following: • For the second quarter of 2016 , IH ( $5 million ); EH ( $11 million income); WRD/GPD ( $49 million ); manufacturing operations ( $59 million ); and Corporate ( $39 million ). • For the first six months of 2016 , IH ( $14 million ); EH ( $8 million income); WRD/GPD ( $52 million ); manufacturing operations ( $73 million ); and Corporate ( $40 million ). | ||||
[3] | Includes adjustments for foreign currency translation. | ||||
[4] | Included in Other current liabilities ( $602 million ) and Other noncurrent liabilities ( $717 million |
Restructuring Charges and Oth44
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals - Footnotes (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 1,319 | [1] | $ 1,583 | [2] |
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 602 | 863 | ||
Other Noncurrent Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 717 | $ 720 | ||
[1] | Included in Other current liabilities ( $602 million ) and Other noncurrent liabilities ( $717 million | |||
[2] | Included in Other current liabilities ( $863 million ) and Other noncurrent liabilities ( $720 million |
Other (Income)_Deductions - N45
Other (Income)/Deductions - Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Other Income and Expenses [Abstract] | |||||||
Interest income | [1] | $ (94) | $ (122) | $ (175) | $ (234) | ||
Interest expense | [1] | 312 | 292 | 621 | 598 | ||
Net interest expense | 218 | 170 | 446 | 363 | |||
Royalty-related income | [2] | (105) | (274) | (191) | (461) | ||
Certain legal matters, net | [3] | 3 | 261 | 11 | 534 | ||
Net gains on asset disposals | [4] | (62) | (31) | (194) | (39) | ||
Loss on sale of HIS net assets | [5] | 28 | 0 | 64 | [6] | 0 | [6] |
Certain asset impairments | [7] | 0 | 816 | 13 | 947 | ||
Business and legal entity alignment costs | [8] | 17 | 60 | 38 | 111 | ||
Other, net | [9] | (164) | 66 | (254) | (57) | ||
Other (income)/deductions––net | [10] | $ (66) | $ 1,068 | $ (68) | $ 1,398 | ||
[1] | Interest income decreased in the second quarter and first six months of 2017 , primarily due to lower investment returns driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2017 | ||||||
[2] | Royalty-related income decreased in the second quarter and first six months of 2017 , primarily due to lower royalty income for Enbrel of $157 million and $275 million , respectively, resulting from the expiration on October 31, 2016 of the 36 -month royalty period under the collaboration agreement for Enbrel in the U.S. and Canada (the collaboration period under the agreement expired on October 31, 2013), partially offset by the addition of Xtandi royalty-related income of $51 million and $87 million | ||||||
[3] | In the second quarter and first six months of 2016 , primarily includes amounts to resolve a Multi-District Litigation relating to Celebrex and Bextra that was pending against the Company in New York federal court for $486 million , partially offset by the reversal of a legal accrual where a loss was no longer deemed probable. In addition, the first six months of 2016 | ||||||
[4] | In the second quarter of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $64 million ) and gains on sales/out-licensing of product and compound rights (approximately $27 million ), partially offset by a net loss related to the sale of our 40% ownership investment in Teuto, including the extinguishment of a put option for the remaining 60% ownership interest (approximately $30 million ). In the first six months of 2017 , primarily includes gains on sales and redemptions of investments in equity and debt securities (approximately $118 million ), gains on sales/out-licensing of product and compound rights (approximately $69 million ) and a gain on sale of property (approximately $50 million ), partially offset by the net loss related to the sale of our investment in Teuto discussed above. In the first six months of 2016 , primarily includes gains on sales/out-licensing of product and compound rights (approximately $31 million | ||||||
[5] | In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. | ||||||
[6] | Amounts may not add due to rounding. | ||||||
[7] | In the second quarter and first six months of 2016 , primarily includes intangible asset impairment charges of $641 million , reflecting (i) $331 million related to developed technology rights for a generic injectable antibiotic product for the treatment of bacterial infections; (ii) $265 million related to an IPR&D compound for the treatment of anemia; and (iii) $45 million of other IPR&D assets, all acquired in connection with our acquisition of Hospira and associated with the EH segment. In addition, 2016 includes an impairment loss of $130 million in the second quarter and $211 million in the first six months related to Pfizer’s 49% -owned equity-method investment with Hisun in China, Hisun Pfizer, and the first six months of 2016 includes an impairment loss of $50 million related to Pfizer’s 40% -owned equity-method investment in Teuto. For additional information concerning Hisun Pfizer and Teuto, see | ||||||
[8] | In the second quarter and first six months of 2017 and 2016 | ||||||
[9] | In the second quarter and first six months of 2017 , primarily includes, among other things, dividend income of $114 million and $157 million , respectively, from our investment in ViiV. In the second quarter and first six months of 2016 , primarily includes, among other things, $150 million paid to Allergan for reimbursement of Allergan’s expenses associated with the terminated transaction. The first six months of 2016 also includes income of $116 million | ||||||
[10] | Amounts may not add due to rounding. |
Other (Income)_Deductions - N46
Other (Income)/Deductions - Net (Footnotes) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Apr. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 30, 2017 | ||
Loss Contingencies [Line Items] | |||||||
Royalty revenue | [1] | $ 105 | $ 274 | $ 191 | $ 461 | ||
Gain on sale of investments | 64 | 118 | |||||
Gain on sale of property | 50 | ||||||
Intangible asset impairment charges | 641 | 641 | |||||
Payments for merger termination costs | $ 150 | 150 | |||||
Income from contract resolution | $ 116 | ||||||
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | |||||
Equity method investment, impairment | $ 130 | $ 81 | $ 211 | ||||
Laboratorio Teuto Brasilero [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Equity method investment, ownership percentage | 40.00% | 40.00% | 40.00% | ||||
Loss on disposal of equity method investment | 30 | ||||||
Equity method investment, impairment | $ 50 | ||||||
Xtandi [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Royalty revenue | 51 | 87 | |||||
Distribution Rights [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Gain on disposition of intangible assets | 27 | 69 | 31 | ||||
Developed Technology Rights [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Intangible asset impairment charges | $ 331 | 331 | |||||
Collaborative Arrangement, Co-promotion [Member] | Enbrel [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Decrease in royalty revenue | 157 | $ 275 | |||||
Royalty period | 36 months | ||||||
Pending Litigation [Member] | Product Safety Misrepresentation [Member] | Celebrex and Bextra [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement | 486 | 486 | |||||
In Process Research and Development [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Intangible asset impairment charges | 265 | 265 | |||||
Operating Segments [Member] | EH [Member] | Hospira [Member] | Other In Process Research and Development [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Intangible asset impairment charges | $ 45 | $ 45 | |||||
Operating Segments [Member] | IH [Member] | ViiV Healthcare Limited [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Dividend income | $ 114 | $ 157 | |||||
Laboratorio Teuto Brasilero [Member] | Laboratorio Teuto Brasilero [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Ownership percentage | 60.00% | ||||||
[1] | Royalty-related income decreased in the second quarter and first six months of 2017 , primarily due to lower royalty income for Enbrel of $157 million and $275 million , respectively, resulting from the expiration on October 31, 2016 of the 36 -month royalty period under the collaboration agreement for Enbrel in the U.S. and Canada (the collaboration period under the agreement expired on October 31, 2013), partially offset by the addition of Xtandi royalty-related income of $51 million and $87 million |
Tax Matters - Narrative (Detail
Tax Matters - Narrative (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate for income from continuing operations | 19.40% | 14.40% | 20.10% | 14.40% |
Tax Matters (Detail)
Tax Matters (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Income Tax Disclosure [Abstract] | |||||
Foreign currency translation adjustments, net | [1] | $ (109) | $ (1) | $ (130) | $ (15) |
Unrealized holding losses on derivative financial instruments, net | (1) | (157) | 2 | (193) | |
Reclassification adjustments for realized (gains)/losses | (88) | 122 | (140) | 49 | |
Derivatives qualifying as hedges, tax, total | (89) | (35) | (138) | (144) | |
Unrealized holding gains on available-for-sale securities, net | 18 | 49 | 55 | 65 | |
Reclassification adjustments for realized (gains)/losses | (7) | (28) | 4 | (2) | |
Available-for-sale securities, tax, total | 11 | 21 | 59 | 63 | |
Benefit plans: actuarial gains/(losses), net | 22 | (8) | 22 | (8) | |
Reclassification adjustments related to amortization | 43 | 47 | 92 | 93 | |
Reclassification adjustments related to settlements, net | (4) | 8 | 8 | 17 | |
Other | (17) | (9) | (13) | (9) | |
Defined benefit plans, actuarial gain (loss), tax, total | 43 | 38 | 110 | 93 | |
Benefit plans: prior service (costs)/credits and other, net | 0 | 31 | 0 | 31 | |
Reclassification adjustments related to amortization | (17) | (15) | (33) | (30) | |
Reclassification adjustments related to curtailments, net | (1) | 0 | (4) | (2) | |
Other | 0 | (2) | 0 | (1) | |
Pension and other postretirement benefit plans, net prior service cost (credit), tax | (19) | 14 | (38) | (3) | |
Tax provision/(benefit) on other comprehensive income | [2],[3] | $ (163) | $ 36 | $ (138) | $ (5) |
[1] | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. | ||||
[2] | Amounts may not add due to rounding. | ||||
[3] | See Note 5C. Tax Matters: Tax Provision/(Benefit) on Other Comprehensive Income. |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Detail) $ in Millions | 6 Months Ended | |
Jul. 02, 2017USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | $ 59,544 | [1] |
Balance, July 2, 2017 | 58,368 | [1] |
Foreign currency translation adjustments attributable to noncontrolling interests | 15 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | (11,036) | |
Other comprehensive income/(loss) | 855 | [2] |
Balance, July 2, 2017 | (10,181) | |
Foreign Currency Translation Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | (6,659) | |
Other comprehensive income/(loss) | 702 | [2] |
Balance, July 2, 2017 | (5,957) | |
Derivative Financial Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | 348 | |
Other comprehensive income/(loss) | (410) | [2] |
Balance, July 2, 2017 | (62) | |
Cash flow hedge loss to be reclassified within twelve months | 100 | |
Available-For-Sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | (131) | |
Other comprehensive income/(loss) | 352 | [2] |
Balance, July 2, 2017 | 221 | |
Actuarial Gains/(Losses) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | (5,473) | |
Other comprehensive income/(loss) | 276 | [2] |
Balance, July 2, 2017 | (5,198) | |
Prior Service (Costs)/Credits and Other [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2016 | 879 | |
Other comprehensive income/(loss) | (66) | [2] |
Balance, July 2, 2017 | $ 814 | |
[1] | Amounts may not add due to rounding. | |
[2] | Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $15 million income for the first six months of 2017 |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Other selected financial assets | |||
Total selected financial assets | $ 20,323 | $ 24,175 | |
Short-term borrowings: | |||
Total short-term borrowings, carried at historical proceeds, as adjusted | [1],[2] | 9,514 | 10,688 |
Long-term debt: | |||
Total long-term debt, carried at historical proceeds, as adjusted | [1],[3] | 34,191 | 31,398 |
Total | 43,705 | 42,085 | |
Total selected financial liabilities | 45,064 | 43,750 | |
Reported Value Measurement [Member] | |||
Other selected financial assets | |||
Held-to-maturity debt securities, carried at amortized cost | [2],[4] | 1,554 | 1,242 |
Restricted stock and private equity securities, carried at cost or at equity-method | [2],[5] | 1,125 | 735 |
Total | 2,678 | 1,977 | |
Long-term debt [Member] | |||
Short-term borrowings: | |||
Net fair value adjustments related to hedging and purchase accounting | 986 | 998 | |
Net unamortized discounts, premiums and debt issuance costs | (151) | (130) | |
Long-term debt: | |||
Principal amount | 33,357 | 30,529 | |
Short-term Debt [Member] | |||
Short-term borrowings: | |||
Principal amount | 9,523 | 10,674 | |
Net fair value adjustments related to hedging and purchase accounting | 4 | 24 | |
Net unamortized discounts, premiums and debt issuance costs | (14) | (11) | |
Fair Value, Measurements, Recurring [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Trading funds and securities | [6],[7] | 323 | 325 |
Selected financial assets measured at fair value on a recurring basis | [7],[8] | 17,645 | 22,198 |
Selected financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments in a liability position | [7],[9] | 1,359 | 1,665 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instruments in a receivable position | [7],[8] | 640 | 625 |
Selected financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments in a liability position | [7],[9] | 166 | 148 |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Swap [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instruments in a receivable position | [7],[8] | 34 | 79 |
Selected financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments in a liability position | [7],[9] | 939 | 1,374 |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Forward-Exchange Contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instruments in a receivable position | [7],[8] | 144 | 551 |
Selected financial liabilities measured at fair value on a recurring basis | |||
Derivative financial instruments in a liability position | [7],[9] | 254 | 143 |
Fair Value, Measurements, Recurring [Member] | Available-for-sale Debt Securities [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available-for-sale securities | [4],[7] | 14,995 | 18,632 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available-for-sale securities | [7] | 1,021 | 1,445 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Available-for-sale securities | [4],[7] | $ 488 | $ 540 |
[1] | Amounts may not add due to rounding. | ||
[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 July 2, 2017 or December 31, 2016 . 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 priv | ||
[3] | The fair value of our long-term debt (not including the current portion of long-term debt) was $38.5 billion as of July 2, 2017 and $34.9 billion as of December 31, 2016 . The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Long-term debt includes foreign currency long-term borrowings with fair values of $4.5 billion as of July 2, 2017 | ||
[4] | Gross unrealized gains and losses are not significant. | ||
[5] | Restricted stock as of July 2, 2017 is primarily composed of $428 million representing the value of 3.2 million shares of ICU Medical common stock received on February 3, 2017, with a fair value of $544 million as of July 2, 2017 based on the closing price of ICU Medical common stock less a discount for lack of marketability. See Note 2B for additional information. Our p | ||
[6] | As of July 2, 2017 , trading funds and securities are composed of $244 million of trading equity funds and $78 million of trading debt funds. As of December 31, 2016 , trading funds and securities are composed of $236 million of trading equity funds and $89 million of trading debt funds. As of July 2, 2017 and December 31, 2016 , trading equity funds of $55 million and $71 million | ||
[7] | We use a market approach in valuing financial instruments on a recurring basis. 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 4% | ||
[8] | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $60 million as of July 2, 2017 ; and foreign currency forward-exchange contracts with fair values of $162 million as of December 31, 2016 | ||
[9] | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency forward-exchange contracts with fair values of $72 million as of July 2, 2017 ; and foreign currency swaps with fair values of $269 million and foreign currency forward-exchange contracts with fair values of $113 million as of December 31, 2016 |
Financial Instruments - Asset51
Financial Instruments - Assets and Liabilities Measured on Recurring Basis - Footnotes (Detail) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jul. 02, 2017 | Dec. 31, 2016 | Feb. 03, 2017 | |
Footnotes to selected financial assets and liabilities: | |||
Gross unrealized gains and losses | $ 0 | $ 0 | |
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 (less than) | 4.00% | ||
Trading equity funds | $ 244 | 236 | |
Trading debt funds | 78 | 89 | |
Trading securities held in trust | 55 | 71 | |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward-Exchange Contracts [Member] | Fair Value, Measurements, Recurring [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Instruments used as offsets (assets) | 60 | 162 | |
Instruments used as offsets (liabilities) | 72 | 113 | |
Not Designated as Hedging Instrument [Member] | Foreign Currency Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Instruments used as offsets (liabilities) | 269 | ||
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Fair value of long-term debt | 38,500 | $ 34,900 | |
Foreign Currency Long Term Debt [Member] | Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Fair value of long-term debt | 4,500 | ||
ICU Medical [Member] | HIS [Member] | Disposed of by Sale [Member] | |||
Footnotes to selected financial assets and liabilities: | |||
Value of shares received from disposition | 428 | $ 428 | |
Number of shares received in disposition | 3.2 | ||
Fair value of shares received from disposition | $ 544 |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Grouping (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Assets | |||
Selected financial assets | $ 20,323 | $ 24,175 | |
Liabilities | |||
Selected financial liabilities | 45,064 | 43,750 | |
Cash and Cash Equivalents [Member] | |||
Assets | |||
Selected financial assets | 749 | 547 | |
Short-term Investments [Member] | |||
Assets | |||
Selected financial assets | 11,748 | 15,255 | |
Other Current Assets [Member] | |||
Assets | |||
Selected financial assets | [1] | 251 | 567 |
Long-term Investments [Member] | |||
Assets | |||
Selected financial assets | 7,008 | 7,116 | |
Other Noncurrent Assets [Member] | |||
Assets | |||
Selected financial assets | [2] | 568 | 689 |
Short-Term Borrowings, Including Current Portion of Long-Term Debt [Member] | |||
Liabilities | |||
Selected financial liabilities | 9,514 | 10,688 | |
Other Current Liabilities [Member] | |||
Liabilities | |||
Selected financial liabilities | [3] | 234 | 443 |
Long-term debt [Member] | |||
Liabilities | |||
Selected financial liabilities | 34,191 | 31,398 | |
Other Noncurrent Liabilities [Member] | |||
Liabilities | |||
Selected financial liabilities | [4] | $ 1,125 | $ 1,222 |
[1] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $106 million ), foreign currency swaps ( $8 million ) and foreign currency forward-exchange contracts ( $137 million ) and, as of December 31, 2016 , include interest rate swaps ( $26 million ), foreign currency swaps ( $43 million ) and foreign currency forward-exchange contracts ( $497 million | ||
[2] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $534 million ), foreign currency swaps ( $27 million ) and foreign currency forward-exchange contracts ( $7 million ) and, as of December 31, 2016 , include interest rate swaps ( $599 million ), foreign currency swaps ( $36 million ) and foreign currency forward-exchange contracts ( $54 million | ||
[3] | As of July 2, 2017 , derivative instruments at fair value include foreign currency swaps ( $5 million ) and foreign currency forward-exchange contracts ( $229 million ) and, as of December 31, 2016 , include interest rate swaps ( $1 million ), foreign currency swaps ( $300 million ) and foreign currency forward-exchange contracts ( $143 million | ||
[4] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $166 million ), foreign currency swaps ( $933 million ) and foreign currency forward-exchange contracts ( $26 million ) and, as of December 31, 2016 , include interest rate swaps ( $147 million ) and foreign currency swaps ( $1.1 billion |
Financial Instruments - Balan53
Financial Instruments - Balance Sheet Grouping - Footnotes (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | $ 20,323 | $ 24,175 | |
Selected financial liabilities | 45,064 | 43,750 | |
Other Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | [1] | 251 | 567 |
Other Current Assets [Member] | Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 106 | 26 | |
Other Current Assets [Member] | Foreign Currency Swap [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 8 | 43 | |
Other Current Assets [Member] | Foreign Currency Forward-Exchange Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 137 | 497 | |
Other Noncurrent Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | [2] | 568 | 689 |
Other Noncurrent Assets [Member] | Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 534 | 599 | |
Other Noncurrent Assets [Member] | Foreign Currency Swap [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 27 | 36 | |
Other Noncurrent Assets [Member] | Foreign Currency Forward-Exchange Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial assets | 7 | 54 | |
Other Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | [3] | 234 | 443 |
Other Current Liabilities [Member] | Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | 1 | ||
Other Current Liabilities [Member] | Foreign Currency Swap [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | 5 | 300 | |
Other Current Liabilities [Member] | Foreign Currency Forward-Exchange Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | 229 | 143 | |
Other Noncurrent Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | [4] | 1,125 | 1,222 |
Other Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | 166 | 147 | |
Other Noncurrent Liabilities [Member] | Foreign Currency Swap [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | 933 | $ 1,100 | |
Other Noncurrent Liabilities [Member] | Foreign Currency Forward-Exchange Contracts [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Selected financial liabilities | $ 26 | ||
[1] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $106 million ), foreign currency swaps ( $8 million ) and foreign currency forward-exchange contracts ( $137 million ) and, as of December 31, 2016 , include interest rate swaps ( $26 million ), foreign currency swaps ( $43 million ) and foreign currency forward-exchange contracts ( $497 million | ||
[2] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $534 million ), foreign currency swaps ( $27 million ) and foreign currency forward-exchange contracts ( $7 million ) and, as of December 31, 2016 , include interest rate swaps ( $599 million ), foreign currency swaps ( $36 million ) and foreign currency forward-exchange contracts ( $54 million | ||
[3] | As of July 2, 2017 , derivative instruments at fair value include foreign currency swaps ( $5 million ) and foreign currency forward-exchange contracts ( $229 million ) and, as of December 31, 2016 , include interest rate swaps ( $1 million ), foreign currency swaps ( $300 million ) and foreign currency forward-exchange contracts ( $143 million | ||
[4] | As of July 2, 2017 , derivative instruments at fair value include interest rate swaps ( $166 million ), foreign currency swaps ( $933 million ) and foreign currency forward-exchange contracts ( $26 million ) and, as of December 31, 2016 , include interest rate swaps ( $147 million ) and foreign currency swaps ( $1.1 billion |
Financial Instruments - Investm
Financial Instruments - Investments in Debt Securities (Detail) $ in Millions | Jul. 02, 2017USD ($) | |
Total Debt Securities [Line Items] | ||
Debt securities maturities within one year | $ 11,479 | |
Debt securities maturities over 1 to 5 years | 3,452 | |
Debt securities maturities over 5 to 10 years | 1,601 | |
Debt securities maturities over 10 years | 16 | |
Total debt securities | 16,548 | |
Corporate debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 2,561 | [1] |
Available-for-sale debt securities maturities over 1 to 5 years | 2,613 | [1] |
Available-for-sale debt securities maturities over 5 to 10 years | 1,579 | [1] |
Available-for-sale debt securities maturities over 10 years | 16 | [1] |
Available-for-sale debt securities maturities total | 6,770 | [1] |
Western European, Asian and other government debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 4,863 | [2] |
Available-for-sale debt securities maturities over 1 to 5 years | 377 | [2] |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | [2] |
Available-for-sale debt securities maturities over 10 years | 0 | [2] |
Available-for-sale debt securities maturities total | 5,240 | [2] |
Western European, Scandinavia and other government agency debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 1,120 | [2] |
Available-for-sale debt securities maturities over 1 to 5 years | 46 | [2] |
Available-for-sale debt securities maturities over 5 to 10 years | 6 | [2] |
Available-for-sale debt securities maturities over 10 years | 0 | [2] |
Available-for-sale debt securities maturities total | 1,172 | [2] |
Government National Mortgage Association and other U.S. government guaranteed asset-back securities [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 404 | |
Available-for-sale debt securities maturities over 1 to 5 years | 84 | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | |
Available-for-sale debt securities maturities over 10 years | 0 | |
Available-for-sale debt securities maturities total | 488 | |
Other asset-backed debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 302 | [3] |
Available-for-sale debt securities maturities over 1 to 5 years | 102 | [3] |
Available-for-sale debt securities maturities over 5 to 10 years | 4 | [3] |
Available-for-sale debt securities maturities over 10 years | 0 | [3] |
Available-for-sale debt securities maturities total | 408 | [3] |
U.S. government debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 328 | |
Available-for-sale debt securities maturities over 1 to 5 years | 35 | |
Available-for-sale debt securities maturities over 5 to 10 years | 9 | |
Available-for-sale debt securities maturities over 10 years | 0 | |
Available-for-sale debt securities maturities total | 371 | |
Supranational debt [Member] | ||
Total Debt Securities [Line Items] | ||
Available-for-sale debt securities maturities within 1 year | 351 | [2] |
Available-for-sale debt securities maturities over 1 to 5 years | 194 | [2] |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | [2] |
Available-for-sale debt securities maturities over 10 years | 0 | [2] |
Available-for-sale debt securities maturities total | 546 | [2] |
Time deposits and other [Member] | ||
Total Debt Securities [Line Items] | ||
Held-to-maturity debt securities maturities within 1 year | 1,275 | |
Held-to-maturity debt securities with maturities over 1 to 5 years | 0 | |
Held-to-maturity debt securities maturities over 5 to 10 years | 3 | |
Held-to-maturity debt securities maturities over 10 years | 0 | |
Held-to-maturity debt securities maturities total | 1,279 | |
Western European government debt [Member] | ||
Total Debt Securities [Line Items] | ||
Held-to-maturity debt securities maturities within 1 year | 275 | [2] |
Held-to-maturity debt securities with maturities over 1 to 5 years | 0 | [2] |
Held-to-maturity debt securities maturities over 5 to 10 years | 0 | [2] |
Held-to-maturity debt securities maturities over 10 years | 0 | [2] |
Held-to-maturity debt securities maturities total | $ 275 | [2] |
[1] | Issued by a diverse group of corporations, with a significant concentration in the technology and energy sectors, all of which are investment-grade. | |
[2] | Issued by governments, government agencies or supranational entities, as applicable, all of which are high quality. | |
[3] | Includes receivable-backed, loan-backed, and mortgage-backed securities, all of which are high quality and in senior positions in the capital structure of the security. Receivable-backed securities are collateralized by credit cards receivables, loan-backed securities are collateralized by senior secured obligations of a diverse pool of companies or student loans, and mortgage-backed securities are collateralized by diversified pools of residential and commercial mortgages. |
Financial Instruments - Short-T
Financial Instruments - Short-Term Borrowings (Details) - USD ($) $ in Billions | Jul. 02, 2017 | Dec. 31, 2016 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Commercial paper | $ 6.1 | $ 5.8 |
Financial Instruments - Long-Te
Financial Instruments - Long-Term Debt (Details) € in Millions, $ in Millions | 6 Months Ended | |||
Jul. 02, 2017USD ($) | Jul. 02, 2017EUR (€) | Apr. 02, 2017USD ($) | ||
Debt Instrument [Line Items] | ||||
Debt issued | $ 34,191 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [1] | 5,631 | ||
Debt issued | $ 5,279 | |||
Senior Notes [Member] | Three-month EURIBOR Plus 0.20% floating rate notes (2019 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | 1,427 | € 1,250 | ||
Senior Notes [Member] | 0.00% euro Notes (2020 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [2] | $ 1,141 | € 1,000 | |
Stated interest rate | 0.00% | 0.00% | ||
Senior Notes [Member] | 0.25% euro Notes (2022 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [2] | $ 1,141 | € 1,000 | |
Stated interest rate | 0.25% | 0.25% | ||
Senior Notes [Member] | 1.00% euro Notes (2027 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [2] | $ 856 | € 750 | |
Stated interest rate | 1.00% | 1.00% | ||
Senior Notes [Member] | Euro Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [3] | $ 4,566 | € 4,000 | |
Weighted average effective interest rate | 0.23% | 0.23% | ||
Senior Notes [Member] | 4.20% Notes (2047 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued | [4] | $ 1,065 | ||
Stated interest rate | 4.20% | 4.20% | ||
EURIBOR [Member] | Senior Notes [Member] | Three-month EURIBOR Plus 0.20% floating rate notes (2019 Notes) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.20% | |||
Floor interest rate | 0.00% | |||
Maximum [Member] | German Government Bond Rate [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption basis spread | 0.15% | |||
[1] | The aggregate amount at issuance date was $5,279 million . The increase in the amount since the date of issuance is due to foreign currency exchange. The following table provides the maturity schedule of our Long-term debt outstanding as of July 2, 2017: (MILLIONS OF DOLLARS) 2018 2019 2020 2021 After 2021 Total Maturities $ 484 $ 4,774 $ 1,494 $ 4,418 $ 23,021 $ 34,191 | |||
[2] | Redeemable at any time, in whole, or in part, at our option prior to 30 to 90 days of maturity date at the comparable German government bond rate, plus 0.15% | |||
[3] | The weighted-average effective interest rate for the euro notes at issuance was 0.23% | |||
[4] | The notes, issued in U.S. dollars in Taiwan, are redeemable, at our option, in whole but not in part, on each March 17 on or after March 17, 2020. |
Financial Instruments - Long-57
Financial Instruments - Long-Term Debt - Maturities (Details) $ in Millions | Jul. 02, 2017USD ($) |
Financial Instruments [Abstract] | |
2,018 | $ 484 |
2,019 | 4,774 |
2,020 | 1,494 |
2,021 | 4,418 |
After 2,021 | 23,021 |
Total | $ 34,191 |
Financial Instruments - Other N
Financial Instruments - Other Noncurrent Liabilities (Detail) - USD ($) $ in Millions | 1 Months Ended | |||
Jun. 30, 2017 | Jul. 02, 2017 | Dec. 31, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | $ 39,033 | $ 35,664 | ||
Developed Technology Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | [1] | 37,191 | $ 33,740 | |
Besponsa [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term over which fixed annual payments are to be made | 9 years | |||
Aggregate amount of guaranteed fixed annual payments to be made in connection with research and development arrangement | $ 148 | |||
Besponsa [Member] | Developed Technology Rights [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | 118 | |||
Besponsa [Member] | Developed Technology Rights [Member] | Other Noncurrent Liabilities [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | 115 | |||
Besponsa [Member] | Developed Technology Rights [Member] | Other Current Liabilities [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | $ 3 | |||
[1] | The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A |
Financial Instruments - Derivat
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | $ 34,191 | $ 34,191 | |||
Pre-tax loss on foreign currency forward exchange contracts | (23) | ||||
Pre-tax loss to be reclassified | 2 | 2 | |||
Gain recognized as an offset | 26 | 71 | |||
Gain (loss) on cash flow hedge ineffectiveness | 0 | $ 0 | 0 | $ 0 | |
Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | (384) | (575) | (450) | (889) |
Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | (9) | (48) | (151) | (73) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 208 | (470) | 450 | (134) |
Interest Rate Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset, notional amount | 12,400 | 12,400 | |||
Foreign Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | 149 | (345) | 237 | (290) |
Foreign Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | 0 | 0 | 0 | 0 |
Foreign Currency Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 225 | (243) | 271 | (126) |
Foreign Currency Swap [Member] | Not Designated as Hedging Instrument [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | 0 | 0 | 0 | 0 |
Foreign Currency Swap [Member] | Not Designated as Hedging Instrument [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | (2) | (3) | (1) | (4) |
Foreign Currency Swap [Member] | Not Designated as Hedging Instrument [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 0 | 0 | 0 | 0 |
Foreign Currency Forward-Exchange Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative asset, notional amount | 26,400 | 26,400 | |||
Notional amount | 3,500 | 3,500 | |||
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | (239) | (227) | (335) | (558) |
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | (4) | (2) | (6) | (1) |
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | (17) | (226) | 178 | (8) |
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | 0 | (3) | 0 | (15) |
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | 0 | 3 | 0 | 1 |
Foreign Currency Forward-Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 0 | 0 | 0 | 0 |
Foreign Currency Forward-Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | 0 | 0 | 0 | 0 |
Foreign Currency Forward-Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | (3) | (46) | (144) | (69) |
Foreign Currency Forward-Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 0 | 0 | 0 | 0 |
Foreign Currency Short Term Borrowings [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | 0 | (26) | ||
Foreign Currency Short Term Borrowings [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | 0 | 0 | ||
Foreign Currency Short Term Borrowings [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 0 | 0 | ||
Foreign Currency Long Term Debt [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Other Comprehensive Income (Loss) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI (Effective Portion) | [1],[2] | (295) | 0 | (352) | 0 |
Foreign Currency Long Term Debt [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [2],[3],[4] | 0 | 0 | 0 | 0 |
Foreign Currency Long Term Debt [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (Income)/Deductions, Net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS (Effective Portion) | [1],[2] | 0 | $ 0 | 0 | $ 0 |
Unsecured Debt [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | $ 1,900 | $ 1,900 | |||
[1] | For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive income/(loss)––Unrealized holding losses on derivative financial instruments, net . 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, net. | ||||
[2] | OID = Other (income)/deductions—net, included in Other (income)/deductions—net in the condensed consolidated statements of income. COS = Cost of sales, included in Cost of sales in the condensed consolidated statements of income. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income | ||||
[3] | Includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges (primarily interest rate swaps), as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. | ||||
[4] | There was no significant ineffectiveness for any period presented. |
Financial Instruments - Narrati
Financial Instruments - Narrative (Detail) $ in Millions | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Concentration Risk [Line Items] | |
Derivatives in a net liability position | $ 409 |
Collateral posted | 400 |
High quality group of banks [Member] | |
Concentration Risk [Line Items] | |
Maximum exposure, amount | 959 |
Technology sector [Member] | |
Concentration Risk [Line Items] | |
Maximum exposure, amount | 941 |
Energy sector [Member] | |
Concentration Risk [Line Items] | |
Maximum exposure, amount | 806 |
Cash and Cash Equivalents [Member] | |
Concentration Risk [Line Items] | |
Cash collateral received | $ 279 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 2,911 | $ 2,293 | |
Work-in-process | 3,860 | 3,696 | |
Raw materials and supplies | 813 | 793 | |
Inventories | [1],[2] | 7,584 | 6,783 |
Noncurrent inventories not included above | [3] | $ 754 | $ 683 |
[1] | Amounts may not add due to rounding. | ||
[2] | The change from December 31, 2016 | ||
[3] | Included in Other noncurrent assets |
Identifiable Intangible Asset62
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 12,315 | $ 16,984 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 93,520 | 87,351 | |
Finite-lived intangible assets, accumulated amortization | [1] | (54,487) | (51,687) |
Finite-lived Intangible Assets, less Accumulated Amortization | 39,033 | 35,664 | |
Intangible assets, gross carrying amount | [1] | 105,835 | 104,335 |
Identifiable Intangible Assets, less Accumulated Amortization | [1],[2] | 51,348 | 52,648 |
Brands [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 6,902 | 6,883 | |
In Process Research and Development [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | [3] | 5,413 | 10,101 |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | [3] | 89,531 | 83,390 |
Finite-lived intangible assets, accumulated amortization | [3] | (52,341) | (49,650) |
Finite-lived Intangible Assets, less Accumulated Amortization | [3] | 37,191 | 33,740 |
Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 2,113 | 2,092 | |
Finite-lived intangible assets, accumulated amortization | (1,088) | (1,032) | |
Finite-lived Intangible Assets, less Accumulated Amortization | 1,025 | 1,060 | |
License Agreements and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 1,876 | 1,869 | |
Finite-lived intangible assets, accumulated amortization | (1,058) | (1,005) | |
Finite-lived Intangible Assets, less Accumulated Amortization | $ 818 | $ 864 | |
[1] | The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization, partially offset by assets acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A | ||
[2] | Amounts may not add due to rounding. | ||
[3] | The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A |
Identifiable Intangible Asset63
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets - Footnotes (Details) - USD ($) $ in Millions | Jul. 02, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Increase in finite-lived intangible assets | $ 39,033 | $ 35,664 | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Increase in finite-lived intangible assets | [1] | 37,191 | $ 33,740 |
Eucrisa [Member] | Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Transfer of intangible assets during period | 4,800 | ||
Besponsa [Member] | Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Increase in finite-lived intangible assets | 118 | ||
In Process Research and Development [Member] | Eucrisa [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Transfer of intangible assets during period | $ (4,800) | ||
[1] | The changes in the gross carrying amount of Developed technology rights and IPR&D primarily reflect the transfer of $4.8 billion from IPR&D to Developed technology rights to reflect the approval of Eucrisa, the Developed technology rights and IPR&D acquired as part of the acquisition of AstraZeneca’s small molecule anti-infectives business (see Note 2A ), the Developed technology rights of $118 million recorded in connection with the EU approval of Besponsa (see Note 7E ), as well as measurement period adjustments related to Medivation (see Note 2A |
Identifiable Intangible Asset64
Identifiable Intangible Assets and Goodwill - Finite-lived Intangible Assets Percentage of Total Intangibles (Details) | Jul. 02, 2017 |
Operating Segments [Member] | Developed Technology Rights [Member] | IH [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 68.00% |
Operating Segments [Member] | Developed Technology Rights [Member] | EH [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 32.00% |
Operating Segments [Member] | Brands [Member] | IH [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 74.00% |
Operating Segments [Member] | Brands [Member] | EH [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 26.00% |
Pfizer's Worldwide Research and Development [Member] | Segment Reconciling Items [Member] | Developed Technology Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Pfizer's Worldwide Research and Development [Member] | Segment Reconciling Items [Member] | Brands [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Identifiable Intangible Asset65
Identifiable Intangible Assets and Goodwill - Indefinite-lived Intangible Assets Percentage of Total Intangibles (Details) | Jul. 02, 2017 |
IH [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 71.00% |
IH [Member] | Operating Segments [Member] | In Process Research and Development [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 81.00% |
EH [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 29.00% |
EH [Member] | Operating Segments [Member] | In Process Research and Development [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 13.00% |
Pfizer's Worldwide Research and Development [Member] | Segment Reconciling Items [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Pfizer's Worldwide Research and Development [Member] | Segment Reconciling Items [Member] | In Process Research and Development [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 7.00% |
Identifiable Intangible Asset66
Identifiable Intangible Assets and Goodwill - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Finite-Lived Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense for finite-lived intangible assets | $ 1,200 | $ 977 | $ 2,400 | $ 2,000 |
Identifiable Intangible Asset67
Identifiable Intangible Assets and Goodwill - Goodwill (Detail) $ in Millions | 6 Months Ended | |
Jul. 02, 2017USD ($) | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2016 | $ 54,449 | [1] |
Additions | 157 | [2] |
Other | 407 | [3] |
Balance, July 2, 2017 | 55,014 | [1] |
IH [Member] | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2016 | 30,134 | |
Additions | 89 | [2] |
Other | 207 | [3] |
Balance, July 2, 2017 | 30,430 | |
EH [Member] | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2016 | 24,315 | |
Additions | 68 | [2] |
Other | 201 | [3] |
Balance, July 2, 2017 | $ 24,584 | |
[1] | Amounts may not add due to rounding. | |
[2] | IH additions primarily relate to our Medivation acquisition and EH additions relate to our acquisition of AstraZeneca’s small molecule anti-infectives business and both are subject to change until we complete the valuation of assets acquired and liabilities assumed (see Note 2A | |
[3] | Primarily reflects the impact of foreign exchange and an adjustment of our estimate of goodwill associated with the HIS net assets sold. |
Pension and Postretirement Be68
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | [1] | $ 67 | $ 62 | $ 135 | $ 125 |
Interest cost | [1] | 159 | 134 | 321 | 268 |
Expected return on plan assets | [1] | (252) | (240) | (511) | (481) |
Amortization of: | |||||
Actuarial losses | [1] | 97 | 99 | 212 | 199 |
Prior service costs (credits) | [1] | 1 | 1 | 3 | 2 |
Curtailments | [1] | 4 | 1 | 9 | 3 |
Settlements | [1] | (7) | 16 | 24 | 31 |
Defined benefit plan, net periodic benefit cost | [1] | 69 | 73 | 193 | 146 |
Pension Plan [Member] | International [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 42 | 43 | 83 | 85 | |
Interest cost | 50 | 60 | 100 | 119 | |
Expected return on plan assets | (85) | (98) | (169) | (196) | |
Amortization of: | |||||
Actuarial losses | 28 | 24 | 56 | 46 | |
Prior service costs (credits) | (1) | (1) | (2) | (1) | |
Curtailments | 0 | (1) | 0 | (1) | |
Settlements | 2 | 0 | 3 | 1 | |
Defined benefit plan, net periodic benefit cost | 37 | 27 | 71 | 53 | |
Supplemental Employee Retirement Plan [Member] | U.S. [Member] | Non-Qualified [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 6 | 5 | 12 | 9 | |
Interest cost | 13 | 11 | 28 | 23 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of: | |||||
Actuarial losses | 12 | 9 | 25 | 18 | |
Prior service costs (credits) | 0 | 0 | 0 | (1) | |
Curtailments | 0 | 0 | 0 | 0 | |
Settlements | 4 | 6 | 24 | 16 | |
Defined benefit plan, net periodic benefit cost | 35 | 31 | 88 | 66 | |
Postretirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 11 | 10 | 21 | 20 | |
Interest cost | 23 | 22 | 45 | 44 | |
Expected return on plan assets | (9) | (8) | (18) | (17) | |
Amortization of: | |||||
Actuarial losses | 8 | 7 | 15 | 15 | |
Prior service costs (credits) | (46) | (41) | (92) | (82) | |
Curtailments | (5) | (1) | (12) | (6) | |
Settlements | 0 | 0 | 0 | 0 | |
Defined benefit plan, net periodic benefit cost | $ (19) | $ (11) | $ (40) | $ (27) | |
[1] | In April 2017, we settled the remaining obligation associated with the Hospira U.S. qualified defined benefit pension plan. We purchased a group annuity contract on behalf of the remaining plan participants with a third-party insurance provider. As a result, we were relieved of the $156 million net pension benefit obligation and recorded a pretax settlement gain of $41 million , partially offset by the recognition of actuarial losses and prior service costs upon plan settlement of approximately $30 million in Restructuring charges and certain acquisition-related costs during the second quarter of 2017 (see Note 3 |
Pension and Postretirement Be69
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost - Footnotes (Details) - Hospira [Member] - Pension Plan [Member] - U.S. [Member] - Qualified [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in pension benefit obligation in connection with Hospira pension plan | $ 156 |
Pretax settlement gain | 41 |
Actuarial losses and prior service costs recognized upon plan settlement | $ 30 |
Pension and Postretirement Be70
Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2017 | Jul. 02, 2017 | ||
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions from our general assets for the six months ended July 2, 2017 | $ 1,000 | $ 1,095 | |
Expected contributions from our general assets during 2017 | [1] | 1,095 | |
Pension Plan [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions from our general assets for the six months ended July 2, 2017 | 92 | ||
Expected contributions from our general assets during 2017 | [1] | 167 | |
Supplemental Employee Retirement Plan [Member] | U.S. [Member] | Non-Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions from our general assets for the six months ended July 2, 2017 | 95 | ||
Expected contributions from our general assets during 2017 | [1] | 141 | |
Postretirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions from our general assets for the six months ended July 2, 2017 | 109 | ||
Expected contributions from our general assets during 2017 | [1] | $ 199 | |
[1] | Contributions expected to be made for 2017 are inclusive of amounts contributed during the six months ended July 2, 2017 , including the $1.0 billion |
Earnings Per Common Share Att71
Earnings Per Common Share Attributable to Common Shareholders (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||
EPS Numerator––Basic | |||||
Income from continuing operations | [1],[2] | $ 3,077 | $ 2,062 | $ 6,207 | $ 5,110 |
Less: Net income attributable to noncontrolling interests | 5 | 16 | 14 | 25 | |
Income from continuing operations attributable to Pfizer Inc. | 3,071 | 2,046 | 6,193 | 5,085 | |
Less: Preferred stock dividends––net of tax | 0 | 0 | 0 | 1 | |
Income from continuing operations attributable to Pfizer Inc. common shareholders | 3,071 | 2,046 | 6,192 | 5,084 | |
Discontinued operations––net of tax | [2] | 2 | 1 | 1 | 1 |
Net income attributable to Pfizer Inc. common shareholders | 3,073 | 2,047 | 6,194 | 5,085 | |
EPS Numerator––Diluted | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | 3,071 | 2,046 | 6,193 | 5,084 | |
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 2 | 1 | 1 | 1 | |
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ 3,073 | $ 2,047 | $ 6,194 | $ 5,085 | |
EPS Denominator | |||||
Weighted-average number of common shares outstanding––Basic | [2] | 5,958 | 6,068 | 5,982 | 6,110 |
Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements (shares) | [3] | 80 | 81 | 83 | 78 |
Weighted-average number of common shares outstanding––Diluted | [2],[3] | 6,037 | 6,149 | 6,065 | 6,188 |
Equity Option [Member] | |||||
EPS Denominator | |||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans (shares) | [3],[4] | 47 | 51 | 47 | 71 |
[1] | Amounts for the three and six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see Note 1B . Basis of Presentation and Significant Accounting Policies––Adoption of New Accounting Standards | ||||
[2] | Amounts may not add due to rounding. | ||||
[3] | Amounts for the second quarter and first six months ended July 3, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016 , as of January 1, 2016, that requires, when applying the treasury stock method for shares that could be repurchased, that the assumed proceeds no longer include the amount of excess tax benefit (see Note 1B | ||||
[4] | These common stock equivalents were outstanding for the periods presented, 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 (Details) - Share Repurchase Agreement with Citibank [Member] - USD ($) $ / shares in Units, shares in Millions | May 19, 2017 | Feb. 06, 2017 | Feb. 02, 2017 | May 19, 2017 | Jul. 02, 2017 |
Accelerated Share Repurchases [Line Items] | |||||
Share repurchase agreement, amount | $ 5,000,000,000 | ||||
Accelerated share repurchases, cash paid | $ 5,000,000,000 | ||||
Shares repurchased | 24 | 126 | |||
Shares repurchased, price per share (in dollars per share) | $ 31.73 | ||||
Shares received in initial delivery, percentage of agreement amount | 80.00% | ||||
Average price paid for shares delivered under agreement (in dollars per share) | $ 33.31 | ||||
Remaining authorized repurchase amount | $ 6,400,000,000 |
Commitments and Contingencies73
Commitments and Contingencies (Actions In Which We Are The Plaintiff) (Details) | Aug. 10, 2017Patents | Jul. 31, 2017Patents | Mar. 31, 2017Patents | Feb. 28, 2017Patents | Jan. 31, 2017Patents | Aug. 31, 2016Patents | Jul. 31, 2016Patents | Jan. 31, 2016Patents | Dec. 31, 2015Patents | Jul. 31, 2015Defendant | Jun. 30, 2015Patents | Jan. 31, 2015Patents | Jun. 30, 2013Patents | Jul. 31, 2015Defendant | Apr. 30, 2017PatentsDefendant |
Precedex Premix [Member] | Hospira Versus Amneal Pharmaceuticals LLC [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents not infringed upon | 4 | ||||||||||||||
Precedex Premix [Member] | Hospira Versus Fresenius [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents not infringed upon | 4 | ||||||||||||||
Precedex Premix [Member] | Hospira Versus Par [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents not infringed upon | 4 | ||||||||||||||
Patent Infringement [Member] | Toviaz [Member] | Pfizer Versus Mylan Laboratories Limited [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents infringed upon | 5 | ||||||||||||||
Number of patents | 5 | 5 | 5 | ||||||||||||
Patent Infringement [Member] | Toviaz [Member] | Pfizer Versus Mylan Laboratories Limited [Member] | Judicial Ruling [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents infringed upon | 5 | 5 | |||||||||||||
Patent Infringement [Member] | Toviaz [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of defendants | Defendant | 4 | ||||||||||||||
Patent Infringement [Member] | Toviaz [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Settled Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of defendants | Defendant | 4 | ||||||||||||||
Patent Infringement [Member] | Toviaz Composition-of-matter Patents [Member] | Pfizer Versus Mylan Laboratories Limited [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents infringed upon | 3 | 3 | |||||||||||||
Patent Infringement [Member] | Toviaz Composition-of-matter Patents [Member] | Pfizer Versus Several Generic Manufacturers [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents infringed upon | 3 | ||||||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus MicroLabs [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents | 3 | ||||||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Zydus [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents | 3 | ||||||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Prinston and Breckenridge [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents | 2 | ||||||||||||||
Patent Infringement [Member] | Eliquis [Member] | Pfizer and BMS Versus Several Generic Manufacturers [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of defendants | Defendant | 25 | ||||||||||||||
Number of patents | 3 | ||||||||||||||
Subsequent Event [Member] | Patent Infringement [Member] | Toviaz [Member] | Pfizer Versus Mylan Laboratories Limited [Member] | Judicial Ruling [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents not infringed upon | 5 | ||||||||||||||
Number of patents infringed upon | 5 | ||||||||||||||
Subsequent Event [Member] | Patent Infringement [Member] | Bavencio [Member] | Pfizer Versus BMS, E.R. Squibb & Sons, Ono Pharmaceutical and Tasuku Honjo [Member] | Pending Litigation [Member] | |||||||||||||||
Gain Contingencies [Line Items] | |||||||||||||||
Number of patents | 1 |
Commitments and Contingencies74
Commitments and Contingencies (Actions In Which We Are The Defendant) (Detail) £ in Millions | 1 Months Ended | ||||
Apr. 30, 2017 | Dec. 31, 2016GBP (£) | Mar. 31, 2015Patents | Mar. 31, 2013lagoon | Jul. 02, 2017Claim | |
Inflectra [Member] | Janssen and New York University Versus Hospira, Celltrion Healthcare and Celltrion Inc. [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of patents | 6 | ||||
Inflectra [Member] | Janssen and New York University Versus Hospira, Celltrion Healthcare and Celltrion Inc. [Member] | Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of patents | 2 | ||||
Inflectra [Member] | Janssen and New York University Versus Hospira, Celltrion Healthcare and Celltrion Inc. [Member] | Settled Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Claims dismissed | 4 | ||||
Xtandi [Member] | Regents Versus Medivation [Member] | Settled Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Percentage of payments Medivation received sought by Regents | 10.00% | ||||
Damages from Product Defects [Member] | Class Action Versus American Optical Corporation And Various Other Defendants [Member] | Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of pending claims | Claim | 56,400 | ||||
Average Wholesale Price [Member] | State of Illinois Versus Pfizer [Member] | Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of pending claims | Claim | 1 | ||||
Environmental Remediation Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of lagoons | lagoon | 2 | ||||
Violation of Antitrust Laws [Member] | Phenytoin Sodium Capsules [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fine imposed by CMA | £ | £ 84.2 |
Segment, Geographic and Other75
Segment, Geographic and Other Revenue Information - Narrative (Detail) $ in Millions | 6 Months Ended | ||
Jul. 02, 2017USD ($)Operating_Segment | Dec. 31, 2016USD ($) | ||
Segment Reporting [Abstract] | |||
Number of business segments | Operating_Segment | 2 | ||
Assets | $ | [1] | $ 168,558 | $ 171,615 |
[1] | Amounts may not add due to rounding. |
Segment, Geographic and Other76
Segment, Geographic and Other Revenue Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | $ 12,896 | $ 13,147 | $ 25,675 | [2] | $ 26,152 | [2] |
Earnings | [1],[3] | 3,815 | 2,410 | 7,767 | 5,971 | ||
Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 12,896 | 13,147 | 25,675 | 26,152 | |||
Earnings | [3] | 7,453 | 7,377 | 15,109 | 15,139 | ||
Segment Reconciling Items [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3],[4],[5] | (758) | (674) | (1,445) | (1,343) | ||
Segment Reconciling Items [Member] | Purchase Accounting Adjustments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3],[4] | (1,201) | (984) | (2,373) | (2,137) | ||
Segment Reconciling Items [Member] | Acquisition-Related Costs [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3],[4] | (68) | (202) | (192) | (317) | ||
Segment Reconciling Items [Member] | Certain Significant Items [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3],[6] | (191) | (1,506) | (348) | (2,144) | ||
Segment Reconciling Items [Member] | Other Unallocated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3] | (199) | (312) | (418) | (548) | ||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Earnings | [3],[4] | (1,222) | (1,289) | (2,566) | (2,680) | ||
IH [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 7,671 | 7,105 | 15,086 | 14,139 | |||
Earnings | [3] | 4,666 | 4,179 | 9,316 | 8,282 | ||
EH [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5,226 | 6,042 | 10,590 | 12,013 | |||
Earnings | [3] | $ 2,787 | $ 3,198 | $ 5,793 | $ 6,857 | ||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||||
[3] | Income from continuing operations before provision for taxes on income. IH’s earnings in the second quarter and first six months of 2017 include d ividend income of $114 million and $157 million , respectively, from our investment in ViiV. For additional information, see | ||||||
[4] | For a description, see the “Other Costs and Business Activities” section above. | ||||||
[5] | Other business activities includes the costs managed by our WRD and GPD organizations. Effective in the first quarter of 2017 , Medical, previously reported as part of Other Business Activities, was reclassified to Corporate. We have reclassified approximately $34 million and $61 million of costs from Other Business Activities to Corporate in the second quarter and first six months of 2016 | ||||||
[6] | Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Earnings in the second quarter of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $85 million , (ii) an incremental charge to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $28 million , (iii) charges for business and legal entity alignment of $17 million and (iv) other charges of $61 million . For additional information, see Note 2B, Note 3 and Note 4. For Earnings in the second quarter of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $231 million , (ii) charges for certain legal matters of $261 million , (iii) certain asset impairment charges of $816 million , (iv) charges for business and legal entity alignment of $60 million and (v) other charges of $138 million . For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2017 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $163 million , (ii) charges for certain legal matters of $8 million , (iii) incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell of $64 million , (iv) charges for business and legal entity alignment of $38 million and (v) other charges of $74 million . For additional information, see Note 2B , Note 3 and Note 4 . For Earnings in the first six months of 2016 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $368 million , (ii) charges for certain legal matters of $546 million , (iii) certain asset impairment charges of $947 million , (iv) charges for business and legal entity alignment of $111 million and (v) other charges of $172 million . For additional information, see Note 3 and Note 4 |
Segment, Geographic and Other77
Segment, Geographic and Other Revenue Information - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Segment Reporting Information [Line Items] | |||||||
Impairment on remeasurement of HIS net assets | [1] | $ 28 | $ 0 | $ 64 | [2] | $ 0 | [2] |
Business and legal entity alignment costs | [3] | 17 | 60 | 38 | 111 | ||
Certain legal matters, net | [4] | 3 | 261 | 11 | 534 | ||
Certain asset impairments | [5] | 0 | 816 | 13 | 947 | ||
Segment Reconciling Items [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Cost reduction and productivity initiatives excluding acquisition related costs | 85 | 231 | 163 | 368 | |||
Business and legal entity alignment costs | 17 | 60 | 38 | 111 | |||
Other nonoperating charges | 61 | 138 | 74 | 172 | |||
Certain legal matters, net | 261 | 8 | 546 | ||||
Certain asset impairments | 816 | 947 | |||||
Adjustment [Member] | Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Costs and expenses | $ 34 | $ 61 | |||||
HIS [Member] | Segment Reconciling Items [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Impairment on remeasurement of HIS net assets | 28 | 64 | |||||
ViiV Healthcare Limited [Member] | Innovative Health Segment [Member] | Operating Segments [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Dividend income | $ 114 | $ 157 | |||||
[1] | In the second quarter and first six months of 2017 , represents incremental charges to amounts previously recorded to write down the HIS net assets to fair value less costs to sell related to the sale of HIS net assets to ICU Medical. | ||||||
[2] | Amounts may not add due to rounding. | ||||||
[3] | In the second quarter and first six months of 2017 and 2016 | ||||||
[4] | In the second quarter and first six months of 2016 , primarily includes amounts to resolve a Multi-District Litigation relating to Celebrex and Bextra that was pending against the Company in New York federal court for $486 million , partially offset by the reversal of a legal accrual where a loss was no longer deemed probable. In addition, the first six months of 2016 | ||||||
[5] | In the second quarter and first six months of 2016 , primarily includes intangible asset impairment charges of $641 million , reflecting (i) $331 million related to developed technology rights for a generic injectable antibiotic product for the treatment of bacterial infections; (ii) $265 million related to an IPR&D compound for the treatment of anemia; and (iii) $45 million of other IPR&D assets, all acquired in connection with our acquisition of Hospira and associated with the EH segment. In addition, 2016 includes an impairment loss of $130 million in the second quarter and $211 million in the first six months related to Pfizer’s 49% -owned equity-method investment with Hisun in China, Hisun Pfizer, and the first six months of 2016 includes an impairment loss of $50 million related to Pfizer’s 40% -owned equity-method investment in Teuto. For additional information concerning Hisun Pfizer and Teuto, see |
Segment, Geographic and Other78
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [1] | $ 12,896 | $ 13,147 | $ 25,675 | [2] | $ 26,152 | [2] |
Percentage Change In Revenue | (2.00%) | (2.00%) | |||||
U.S. [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | $ 6,345 | 6,370 | $ 12,982 | 13,031 | |||
Percentage Change In Revenue | 0.00% | 0.00% | |||||
Developed Europe [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [3] | $ 2,124 | 2,418 | $ 4,145 | 4,764 | ||
Percentage Change In Revenue | [3] | (12.00%) | (13.00%) | ||||
Developed Rest Of World [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [4] | $ 1,611 | 1,713 | $ 3,165 | 3,229 | ||
Percentage Change In Revenue | [4] | (6.00%) | (2.00%) | ||||
Emerging Markets [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [5] | $ 2,815 | $ 2,646 | $ 5,382 | $ 5,128 | ||
Percentage Change In Revenue | [5] | 6.00% | 5.00% | ||||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||||
[3] | Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion and $1.8 billion in the second quarter of 2017 and 2016 , respectively, and $3.3 billion and $3.6 billion in the first six months of 2017 and 2016 | ||||||
[4] | Developed Rest of World region includes the following markets: Japan, Canada, Australia, South Korea and New Zealand. | ||||||
[5] | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Africa, Eastern Europe, Central Europe, the Middle East and Turkey. |
Segment, Geographic and Other79
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [1] | $ 12,896 | $ 13,147 | $ 25,675 | [2] | $ 26,152 | [2] |
Developed Europe [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | [3] | 2,124 | 2,418 | 4,145 | 4,764 | ||
Euro Member Countries, Euro | Developed Europe [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | $ 1,700 | $ 1,800 | $ 3,300 | $ 3,600 | |||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||||
[3] | Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.7 billion and $1.8 billion in the second quarter of 2017 and 2016 , respectively, and $3.3 billion and $3.6 billion in the first six months of 2017 and 2016 |
Segment, Geographic and Other80
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | ||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [1] | $ 12,896 | $ 13,147 | $ 25,675 | [2] | $ 26,152 | [2] |
Innovative Health and Essential Health [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 12,896 | 13,147 | 25,675 | 26,152 | |||
Innovative Health and Essential Health [Member] | Lyrica [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [3] | 1,254 | 1,261 | 2,526 | 2,490 | ||
Innovative Health and Essential Health [Member] | Viagra [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [4] | 349 | 401 | 687 | 796 | ||
Innovative Health and Essential Health [Member] | Alliance revenues [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 715 | 376 | 1,370 | 736 | |||
Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [5] | 7,671 | 7,105 | 15,086 | 14,139 | ||
Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [6] | 5,226 | 6,042 | 10,590 | 12,013 | ||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [7] | 2,707 | 2,864 | 5,313 | 5,664 | ||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Lipitor [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 445 | 461 | 849 | 872 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Premarin family [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 245 | 251 | 473 | 507 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Norvasc [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 231 | 240 | 458 | 476 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | EpiPen [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 90 | 93 | 171 | 190 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Xalatan/Xalacom [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 81 | 94 | 158 | 182 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Relpax [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 60 | 87 | 143 | 165 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Zithromax [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 62 | 67 | 140 | 147 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Effexor [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 73 | 67 | 139 | 137 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Zoloft [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 69 | 77 | 137 | 156 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Xanax [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 52 | 55 | 107 | 108 | |||
Legacy Established Products (LEP) [Member] | Essential Health Business [Member] | EH [Member] | Other Legacy Established Products [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 1,300 | 1,371 | 2,538 | 2,723 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [8] | 1,444 | 1,497 | 2,996 | 3,021 | ||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | Medrol [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 123 | 115 | 243 | 228 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | Sulperazon [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 110 | 105 | 232 | 201 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | Fragmin [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 71 | 82 | 142 | 160 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | Precedex [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 67 | 66 | 132 | 135 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | Tygacil [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 57 | 59 | 131 | 134 | |||
Sterile Injectable Pharmaceuticals [Member] | Essential Health Business [Member] | EH [Member] | All Other Sterile Injectable Pharmaceuticals [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 1,016 | 1,070 | 2,116 | 2,162 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [9] | 782 | 1,111 | 1,604 | 2,201 | ||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Lyrica [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [3] | 154 | 214 | 294 | 431 | ||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Viagra [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [4] | 93 | 101 | 183 | 197 | ||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Celebrex [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 178 | 183 | 353 | 355 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Vfend [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 101 | 162 | 208 | 319 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Pristiq [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 46 | 194 | 161 | 372 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Zyvox [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 75 | 114 | 152 | 240 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | Revatio [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 67 | 74 | 131 | 140 | |||
Peri-LOE Products [Member] | Essential Health Business [Member] | EH [Member] | All Other Peri-LOE Products [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 68 | 69 | 121 | 146 | |||
Biosimilars [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [10] | 121 | 78 | 226 | 145 | ||
Biosimilars [Member] | Essential Health Business [Member] | EH [Member] | Inflectra/Remsima [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 94 | 45 | 172 | 81 | |||
Biosimilars [Member] | Essential Health Business [Member] | EH [Member] | All Other Biosimilars [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 27 | 33 | 54 | 64 | |||
CentreOne [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [11] | 171 | 196 | 353 | 384 | ||
Hospira Infusion Systems (HIS) [Member] | Essential Health Business [Member] | EH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [12] | 0 | 295 | 97 | 599 | ||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 2,412 | 2,190 | 4,789 | 4,314 | |||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | Lyrica [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [3] | 1,101 | 1,048 | 2,231 | 2,059 | ||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | Eliquis [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 605 | 404 | 1,169 | 776 | |||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | Viagra [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | [4] | 255 | 300 | 505 | 600 | ||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | Chantix / Champix [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 248 | 213 | 487 | 434 | |||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | Toviaz [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 62 | 67 | 125 | 131 | |||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | B M P 2 [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 57 | 61 | 119 | 112 | |||
Internal Medicine [Member] | Innovative Health Business [Member] | IH [Member] | All Other Internal Medicine [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 84 | 97 | 153 | 203 | |||
Vaccines [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 1,270 | 1,365 | 2,735 | 2,935 | |||
Vaccines [Member] | Innovative Health Business [Member] | IH [Member] | Prevnar 13/Prevenar 13 [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 1,154 | 1,258 | 2,547 | 2,766 | |||
Vaccines [Member] | Innovative Health Business [Member] | IH [Member] | FSME-IMMUN/TicoVac [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 50 | 42 | 76 | 69 | |||
Vaccines [Member] | Innovative Health Business [Member] | IH [Member] | All other Vaccines [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 66 | 65 | 112 | 100 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 1,589 | 1,101 | 2,935 | 2,102 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Ibrance [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 853 | 514 | 1,532 | 942 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Sutent [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 279 | 285 | 529 | 563 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Xalkori [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 155 | 137 | 296 | 275 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Xtandi Alliance [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 141 | 0 | 272 | 0 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Inlyta [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 88 | 108 | 172 | 209 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | Bosulif [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 59 | 41 | 106 | 78 | |||
Oncology [Member] | Innovative Health Business [Member] | IH [Member] | All other Oncology [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 14 | 16 | 28 | 34 | |||
Inflammation and Immunology (I&I) [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 992 | 999 | 1,863 | 1,947 | |||
Inflammation and Immunology (I&I) [Member] | Innovative Health Business [Member] | IH [Member] | Enbrel (Outside the U.S. and Canada) [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 617 | 766 | 1,205 | 1,500 | |||
Inflammation and Immunology (I&I) [Member] | Innovative Health Business [Member] | IH [Member] | Xeljanz [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 336 | 217 | 587 | 414 | |||
Inflammation and Immunology (I&I) [Member] | Innovative Health Business [Member] | IH [Member] | Eucrisa [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 9 | 0 | 17 | 0 | |||
Inflammation and Immunology (I&I) [Member] | Innovative Health Business [Member] | IH [Member] | All Other Inflammation and Immunology Products [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 31 | 16 | 54 | 33 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 562 | 614 | 1,069 | 1,182 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | BeneFIX [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 153 | 183 | 302 | 367 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | ReFacto AF/ Xyntha [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 139 | 139 | 269 | 268 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | Genotropin [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 135 | 152 | 238 | 277 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | Somavert [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 61 | 59 | 117 | 114 | |||
Rare Disease [Member] | Innovative Health Business [Member] | IH [Member] | All Other Rare Disease [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | 74 | 81 | 141 | 156 | |||
Consumer Healthcare [Member] | Innovative Health Business [Member] | IH [Member] | |||||||
Revenue from External Customer [Line Items] | |||||||
Revenues | $ 846 | $ 837 | $ 1,694 | $ 1,659 | |||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||||
[3] | Lyrica revenues from all of Europe, Russia, Turkey, Israel and Central Asia countries are included in Lyrica EH. All other Lyrica revenues are included in Lyrica IH. Total Lyrica revenues represent the aggregate of worldwide revenues from Lyrica IH and Lyrica EH. | ||||||
[4] | Viagra revenues from the U.S. and Canada are included in Viagra IH. All other Viagra revenues are included in Viagra EH. Total Viagra revenues represent the aggregate of worldwide revenues from Viagra IH and Viagra EH. | ||||||
[5] | The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare. Through December 31, 2016, includes Duavive/Duavee and Viviant (recorded in All other Internal Medicine in 2016), which were transferred from Innovative Health to Essential Health effective January 1, 2017 (recorded in All other LEP (EH) beginning January 1, 2017), in order to align these products with our management of the women’s health portfolio within EH. | ||||||
[6] | The EH business encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, HIS (through February 2, 2017), Biosimilars and Pfizer CentreOne and includes all legacy Hospira commercial operations. | ||||||
[7] | Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). Effective January 1, 2017, All other LEP includes Duavive/Duavee and Viviant, which were transferred from Innovative Health (recorded in All other Internal Medicine (IH) in 2016), in order to align these products with our management of the women’s health portfolio within EH. | ||||||
[8] | Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products). | ||||||
[9] | Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; Viagra in all countries (excluding the U.S. and Canada); and worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra. | ||||||
[10] | Biosimilars include Inflectra/Remsima (biosimilar infliximab) in the U.S. and certain international markets, Nivestim (biosimilar filgrastim) in certain European, Asian and Africa/Middle Eastern markets and Retacrit (biosimilar epoetin zeta) in certain European and Africa/Middle Eastern markets. | ||||||
[11] | Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements, including with Zoetis. | ||||||
[12] | HIS (through February 2, 2017) includes Medication Management Systems products composed of infusion pumps and related software and services, as well as IV Infusion Products, including large volume IV solutions and their associated administration sets. |