Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-3619 | |
Entity Registrant Name | PFIZER INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-5315170 | |
Entity Address, Address Line One | 235 East 42nd Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 733-2323 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,531,048,353 | |
Entity Central Index Key | 0000078003 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, $.05 par value [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.05 par value | |
Trading Symbol | PFE | |
Security Exchange Name | NYSE | |
0.000% Notes due 2020 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.000% Notes due 2020 | |
Trading Symbol | PFE20A | |
Security Exchange Name | NYSE | |
0.250% Notes due 2022 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.250% Notes due 2022 | |
Trading Symbol | PFE22 | |
Security Exchange Name | NYSE | |
1.000% Notes due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2027 | |
Trading Symbol | PFE27 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Income Statement [Abstract] | |||||
Revenues | [1] | $ 13,264 | $ 13,466 | $ 26,382 | $ 26,373 |
Costs and expenses: | |||||
Cost of sales | [1],[2] | 2,576 | 2,916 | 5,009 | 5,479 |
Selling, informational and administrative expenses | [1],[2] | 3,511 | 3,542 | 6,850 | 6,954 |
Research and development expenses | [1],[2] | 1,842 | 1,797 | 3,544 | 3,540 |
Amortization of intangible assets | [1] | 1,184 | 1,191 | 2,367 | 2,387 |
Restructuring charges and certain acquisition-related costs | [1] | (115) | 44 | (69) | 87 |
Other (income)/deductions––net | [1] | 126 | (551) | 218 | (728) |
Income from continuing operations before provision/(benefit) for taxes on income | [1],[3] | 4,141 | 4,527 | 8,463 | 8,654 |
Provision/(benefit) for taxes on income | [1] | (915) | 648 | (481) | 1,204 |
Income from continuing operations | [1] | 5,056 | 3,879 | 8,945 | 7,450 |
Discontinued operations––net of tax | [1] | 0 | 0 | 0 | (1) |
Net income before allocation to noncontrolling interests | [1],[4],[5],[6] | 5,056 | 3,879 | 8,945 | 7,449 |
Less: Net income attributable to noncontrolling interests | [1] | 10 | 7 | 15 | 16 |
Net income attributable to Pfizer Inc. | [1] | $ 5,046 | $ 3,872 | $ 8,929 | $ 7,432 |
Earnings per common share––basic: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | [1] | $ 0.91 | $ 0.66 | $ 1.59 | $ 1.26 |
Discontinued operations––net of tax (in dollars per share) | [1] | 0 | 0 | 0 | 0 |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | [1] | 0.91 | 0.66 | 1.59 | 1.26 |
Earnings per common share––diluted: | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders (in dollars per share) | [1] | 0.89 | 0.65 | 1.56 | 1.24 |
Discontinued operations––net of tax (in dollars per share) | [1] | 0 | 0 | 0 | 0 |
Net income attributable to Pfizer Inc. common shareholders (in dollars per share) | [1] | $ 0.89 | $ 0.65 | $ 1.56 | $ 1.24 |
Weighted-average shares––basic | [1] | 5,562 | 5,866 | 5,598 | 5,911 |
Weighted-average shares––diluted | [1] | 5,672 | 5,952 | 5,711 | 6,004 |
[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/(benefit) for taxes on income . Biopharma’s earnings include d ividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018 , and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4. | ||||
[4] | Amounts may not add due to rounding. | ||||
[5] | Amounts may not add due to rounding. | ||||
[6] | Amounts may not add due to rounding. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income before allocation to noncontrolling interests | [1],[2],[3],[4] | $ 5,056 | $ 3,879 | $ 8,945 | $ 7,449 |
Foreign currency translation adjustments, net | [4] | (485) | (699) | (161) | 59 |
Reclassification adjustments | [4] | 0 | (35) | 2 | (20) |
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax | [4] | (485) | (734) | (159) | 39 |
Unrealized holding gains/(losses) on derivative financial instruments, net | [4] | (176) | 127 | 91 | 13 |
Reclassification adjustments for (gains)/losses included in net income | [4],[5] | (81) | 310 | (343) | 354 |
Other comprehensive income (loss), derivatives qualifying as hedges, before tax, total | [4] | (256) | 437 | (252) | 367 |
Unrealized holding gains/(losses) on available-for-sale securities, net | [4] | (7) | (374) | 33 | (214) |
Reclassification adjustments for (gains)/losses included in net income | [4],[5] | 26 | 143 | 37 | (31) |
Reclassification adjustments for unrealized gains included in Retained Earnings | [4],[6] | 0 | 0 | 0 | (462) |
Other comprehensive income (loss), available-for-sale securities, before tax, total | [4] | 19 | (231) | 70 | (707) |
Benefit plans: actuarial gains/(losses), net | [4] | (4) | (57) | (4) | 106 |
Reclassification adjustments related to amortization | [4] | 60 | 61 | 121 | 123 |
Reclassification adjustments related to settlements, net | [4] | 2 | 30 | 2 | 67 |
Other | [4] | 41 | 107 | 18 | 21 |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net gain (loss), before tax, total | [4] | 100 | 141 | 137 | 316 |
Benefit plans: prior service costs and other, net | [4] | (1) | 0 | (1) | 0 |
Reclassification adjustments related to amortization of prior service costs and other, net | [4] | (46) | (46) | (93) | (92) |
Reclassification adjustments related to curtailments of prior service costs and other, net | [4] | 0 | (7) | 0 | (13) |
Other | [4] | 1 | (1) | 2 | 1 |
Defined benefit plan, amounts recognized in other comprehensive income (loss), net prior service cost, before tax | [4] | (46) | (53) | (92) | (104) |
Other comprehensive loss, before tax | [4] | (669) | (440) | (296) | (88) |
Tax provision/(benefit) on other comprehensive loss | [4] | (59) | 173 | (34) | 605 |
Other comprehensive loss before allocation to noncontrolling interests | [2],[4] | (610) | (613) | (262) | (693) |
Comprehensive income before allocation to noncontrolling interests | [4] | 4,446 | 3,266 | 8,683 | 6,755 |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | [4] | 12 | (4) | 13 | 6 |
Comprehensive income attributable to Pfizer Inc. | [4] | $ 4,434 | $ 3,270 | $ 8,669 | $ 6,750 |
[1] | Amounts may not add due to rounding. | ||||
[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] | Reclassified into Other (income)/deductions—net and Cost of sales in the condensed consolidated statements of income. For additional information on amounts reclassified into Cost of sales, see Note 7E. Financial Instruments: Derivative Financial Instruments and Hedging Activities. | ||||
[6] | For additional information, see Notes to Consolidated Financial Statements —Note 1B . Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 1,784 | $ 1,139 | [2] |
Short-term investments | [1] | 11,128 | 17,694 | |
Trade accounts receivable, less allowance for doubtful accounts: 2019—$540; 2018—$541 | [1] | 9,793 | 8,025 | |
Inventories | [1],[3] | 8,233 | 7,508 | |
Current tax assets | [1] | 3,723 | 3,374 | |
Other current assets | [1] | 2,535 | 2,461 | |
Assets held for sale | [1] | 9,877 | 9,725 | |
Total current assets | [1] | 47,073 | 49,926 | |
Long-term investments | [1] | 2,905 | 2,767 | |
Property, plant and equipment, less accumulated depreciation: 2019—$16,389; 2018—$16,591 | [1] | 13,521 | 13,385 | |
Identifiable intangible assets, less accumulated amortization | [1],[4] | 33,024 | 35,211 | |
Goodwill | [1] | 53,352 | 53,411 | |
Noncurrent deferred tax assets and other noncurrent tax assets | [1] | 1,935 | 1,924 | |
Other noncurrent assets | [1] | 4,388 | 2,799 | |
Total assets | [1] | 156,199 | 159,422 | |
Liabilities and Equity | ||||
Short-term borrowings, including current portion of long-term debt: 2019—$2,139; 2018—$4,776 | [1] | 10,507 | 8,831 | |
Trade accounts payable | [1] | 4,002 | 4,674 | |
Dividends payable | [1] | 1,991 | 2,047 | |
Income taxes payable | [1] | 1,536 | 1,265 | |
Accrued compensation and related items | [1] | 1,875 | 2,397 | |
Other current liabilities | [1] | 10,110 | 10,753 | |
Liabilities held for sale | [1] | 2,009 | 1,890 | |
Total current liabilities | [1] | 32,030 | 31,858 | |
Long-term debt | [1] | 36,168 | 32,909 | |
Pension benefit obligations, net | [1] | 4,982 | 5,272 | |
Postretirement benefit obligations, net | [1] | 1,310 | 1,338 | |
Noncurrent deferred tax liabilities | [1] | 3,180 | 3,700 | |
Other taxes payable | [1] | 12,421 | 14,737 | |
Other noncurrent liabilities | [1] | 6,183 | 5,850 | |
Total liabilities | [1] | 96,274 | 95,664 | |
Commitments and Contingencies | [1] | |||
Preferred stock | [1] | 18 | 19 | |
Common stock | [1] | 468 | 467 | |
Additional paid-in capital | [1] | 86,963 | 86,253 | |
Treasury stock | [1] | (110,786) | (101,610) | |
Retained earnings | [1] | 94,440 | 89,554 | |
Accumulated other comprehensive loss | [1] | (11,535) | (11,275) | |
Total Pfizer Inc. shareholders’ equity | [1] | 59,568 | 63,407 | |
Equity attributable to noncontrolling interests | [1] | 357 | 351 | |
Total equity | [1],[5] | 59,924 | 63,758 | |
Total liabilities and equity | [1] | $ 156,199 | $ 159,422 | |
[1] | Amounts may not add due to rounding. | |||
[2] | Amounts may not add due to rounding. | |||
[3] | The change from December 31, 2018 reflects increases for certain products to meet targeted levels in the normal course of business, including inventory build for supply recovery and market demand, partially offset by a decrease due to foreign exchange. | |||
[4] | The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization and intangible asset impairment charges, partially offset by additions for the period. See Note 4 for additional information on intangible asset impairments. | |||
[5] | Amounts may not add due to rounding. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | [1] | $ 540 | $ 541 |
Property, plant and equipment, accumulated depreciation | [1] | 16,389 | 16,591 |
Current portion of long-term debt | [1] | $ 2,139 | $ 4,776 |
[1] | Amounts may not add due to rounding. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Add'l Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accum. Other Comp. Loss [Member] | Shareholders' Equity [Member] | Noncontrolling Interests [Member] | ||
Beginning balance (in shares) at Dec. 31, 2017 | [1] | 524 | 9,275,000,000 | (3,296,000,000) | |||||||
Beginning balance at Dec. 31, 2017 | [1] | $ 71,656 | $ 21 | $ 464 | $ 84,278 | $ (89,425) | $ 85,291 | $ (9,321) | $ 71,308 | $ 348 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | [1] | 7,449 | [2],[3],[4] | 7,432 | 7,432 | 16 | |||||
Other comprehensive income/(loss), net of tax | [1] | (693) | [4] | (682) | (682) | (11) | |||||
Cash dividends declared: | |||||||||||
Common stock | [1] | (4,035) | (4,035) | (4,035) | |||||||
Preferred stock | [1] | (1) | (1) | (1) | |||||||
Noncontrolling interests | [1] | (7) | (7) | ||||||||
Share-based payment transactions (in shares) | [1] | 28,000,000 | 3,000,000 | ||||||||
Share-based payment transactions | [1] | 648 | $ 1 | 621 | $ 25 | 648 | |||||
Purchases of common stock (in shares) | [1] | (145,000,000) | |||||||||
Purchases of common stock | [1] | (6,063) | $ (6,063) | (6,063) | |||||||
Preferred stock conversions and redemptions (in shares) | [1] | (22) | |||||||||
Preferred stock conversions and redemptions | [1] | (2) | $ (1) | (1) | (2) | ||||||
Other | [1],[5] | 1,172 | 1,172 | 1,173 | |||||||
Ending balance (in shares) at Jul. 01, 2018 | [1] | 502 | 9,303,000,000 | (3,438,000,000) | |||||||
Ending balance at Jul. 01, 2018 | [1] | 70,124 | $ 20 | $ 465 | 84,898 | $ (95,463) | 89,860 | (10,003) | 69,778 | 346 | |
Beginning balance (in shares) at Apr. 01, 2018 | [1] | 513 | 9,299,000,000 | (3,437,000,000) | |||||||
Beginning balance at Apr. 01, 2018 | [1] | 70,541 | $ 21 | $ 465 | 84,599 | $ (95,460) | 89,961 | (9,402) | 70,184 | 358 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | [1] | 3,879 | [2],[3],[4] | 3,872 | 3,872 | 7 | |||||
Other comprehensive income/(loss), net of tax | [1] | (613) | [4] | (602) | (602) | (11) | |||||
Cash dividends declared: | |||||||||||
Common stock | [1] | (3,970) | (3,970) | (3,970) | |||||||
Preferred stock | [1] | 0 | 0 | 0 | |||||||
Noncontrolling interests | [1] | (7) | (7) | ||||||||
Share-based payment transactions (in shares) | [1] | 4,000,000 | |||||||||
Share-based payment transactions | [1] | 297 | $ 0 | 300 | (4) | 297 | |||||
Purchases of common stock | [1] | 0 | $ 0 | 0 | |||||||
Preferred stock conversions and redemptions (in shares) | [1] | (11) | |||||||||
Preferred stock conversions and redemptions | [1] | (1) | (1) | (1) | |||||||
Other | [1] | (2) | (2) | (2) | |||||||
Ending balance (in shares) at Jul. 01, 2018 | [1] | 502 | 9,303,000,000 | (3,438,000,000) | |||||||
Ending balance at Jul. 01, 2018 | [1] | 70,124 | $ 20 | $ 465 | 84,898 | $ (95,463) | 89,860 | (10,003) | 69,778 | 346 | |
Beginning balance (in shares) at Dec. 31, 2018 | [1] | 478 | 9,332,000,000 | (3,615,000,000) | |||||||
Beginning balance at Dec. 31, 2018 | [1] | 63,758 | [6] | $ 19 | $ 467 | 86,253 | $ (101,610) | 89,554 | (11,275) | 63,407 | 351 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | [1] | 8,945 | [2],[3],[4] | 8,929 | 8,929 | 15 | |||||
Other comprehensive income/(loss), net of tax | [1] | (262) | [4] | (260) | (260) | (2) | |||||
Cash dividends declared: | |||||||||||
Common stock | [1] | (4,062) | (4,062) | (4,062) | |||||||
Preferred stock | [1] | (1) | (1) | (1) | |||||||
Noncontrolling interests | [1] | (8) | (8) | ||||||||
Share-based payment transactions (in shares) | [1] | 31,000,000 | (7,000,000) | ||||||||
Share-based payment transactions | [1] | 402 | $ 2 | 712 | $ (312) | 402 | |||||
Purchases of common stock (in shares) | [1] | (180,000,000) | |||||||||
Purchases of common stock | [1] | (8,865) | (8,865) | ||||||||
Preferred stock conversions and redemptions (in shares) | [1] | (20) | |||||||||
Preferred stock conversions and redemptions | [1] | (2) | $ (1) | (1) | (2) | ||||||
Other | [1],[7] | 19 | 19 | 19 | |||||||
Ending balance (in shares) at Jun. 30, 2019 | [1] | 458 | 9,363,000,000 | (3,801,000,000) | |||||||
Ending balance at Jun. 30, 2019 | [1] | 59,924 | [6] | $ 18 | $ 468 | 86,963 | $ (110,786) | 94,440 | (11,535) | 59,568 | 357 |
Beginning balance (in shares) at Mar. 31, 2019 | [1] | 466 | 9,358,000,000 | (3,801,000,000) | |||||||
Beginning balance at Mar. 31, 2019 | [1] | 59,158 | $ 19 | $ 468 | 86,635 | $ (110,781) | 93,388 | (10,923) | 58,806 | 352 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | [1] | 5,056 | [2],[3],[4] | 5,046 | 5,046 | 10 | |||||
Other comprehensive income/(loss), net of tax | [1] | (610) | [4] | (613) | (613) | 3 | |||||
Cash dividends declared: | |||||||||||
Common stock | [1] | (3,994) | (3,994) | (3,994) | |||||||
Preferred stock | [1] | 0 | 0 | 0 | |||||||
Noncontrolling interests | [1] | (8) | (8) | ||||||||
Share-based payment transactions (in shares) | [1] | 5,000,000 | 0 | ||||||||
Share-based payment transactions | [1] | 324 | $ 0 | 329 | $ (6) | 324 | |||||
Purchases of common stock (in shares) | [1] | 0 | |||||||||
Purchases of common stock | [1] | 0 | $ 0 | 0 | |||||||
Preferred stock conversions and redemptions (in shares) | [1] | (8) | |||||||||
Preferred stock conversions and redemptions | [1] | (1) | (1) | (1) | |||||||
Other | [1] | 0 | 0 | 0 | 0 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | [1] | 458 | 9,363,000,000 | (3,801,000,000) | |||||||
Ending balance at Jun. 30, 2019 | [1] | $ 59,924 | [6] | $ 18 | $ 468 | $ 86,963 | $ (110,786) | $ 94,440 | $ (11,535) | $ 59,568 | $ 357 |
[1] | Amounts may not add due to rounding. | ||||||||||
[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] | Represents the cumulative effect of the adoption of new accounting standards in the first quarter of 2018 for revenues, financial assets and liabilities, income tax accounting, and the reclassification of certain tax effects from Accumulated other comprehensive income . For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. | ||||||||||
[6] | Amounts may not add due to rounding. | ||||||||||
[7] | Represents the cumulative effect of the adoption of a new accounting standard for leases in the first quarter of 2019. For additional information, see Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards . |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | ||
Operating Activities | |||
Net income before allocation to noncontrolling interests | [1],[2],[3],[4] | $ 8,945 | $ 7,449 |
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | |||
Depreciation and amortization | [3] | 3,073 | 3,129 |
Asset write-offs and impairments | [3] | 178 | 41 |
TCJA impact | [3],[5] | (285) | (68) |
Deferred taxes from continuing operations | [3] | (160) | (500) |
Share-based compensation expense | [3] | 384 | 379 |
Benefit plan contributions in excess of income | [3] | (313) | (826) |
Other adjustments, net | [3] | (462) | (523) |
Other changes in assets and liabilities, net of acquisitions and divestitures | [3] | (7,051) | (3,250) |
Net cash provided by operating activities | [3] | 4,309 | 5,830 |
Investing Activities | |||
Purchases of property, plant and equipment | [3] | (939) | (810) |
Purchases of short-term investments | [3] | (4,063) | (3,122) |
Proceeds from redemptions/sales of short-term investments | [3] | 6,001 | 10,497 |
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less | [3] | 4,717 | 1,231 |
Purchases of long-term investments | [3] | (123) | (1,070) |
Proceeds from redemptions/sales of long-term investments | [3] | 142 | 1,361 |
Acquisitions of intangible assets | [3] | (267) | (32) |
Other investing activities, net | [3] | 179 | 138 |
Net cash provided by investing activities | [3] | 5,648 | 8,193 |
Financing Activities | |||
Proceeds from short-term borrowings | [3] | 3,956 | 1,746 |
Principal payments on short-term borrowings | [3] | (2,375) | (2,921) |
Net proceeds from short-term borrowings with original maturities of three months or less | [3] | 2,719 | 2,092 |
Proceeds from issuance of long-term debt | [3] | 4,942 | 0 |
Principal payments on long-term debt | [3] | (5,355) | (3,104) |
Purchases of common stock | [3] | (8,865) | (6,063) |
Cash dividends paid | [3] | (4,047) | (4,021) |
Proceeds from exercise of stock options | [3] | 248 | 474 |
Other financing activities, net | [3] | (541) | (831) |
Net cash used in financing activities | [3] | (9,318) | (12,628) |
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents | [3] | (28) | (15) |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | [3] | 612 | 1,381 |
Cash and cash equivalents and restricted cash and cash equivalents, beginning | [3] | 1,225 | 1,431 |
Cash and cash equivalents and restricted cash and cash equivalents, end | [3] | 1,837 | 2,811 |
Non-cash transactions: | |||
Equity investment in Allogene received in exchange for Pfizer's allogeneic CAR T developmental program assets | [3],[6] | 0 | 92 |
Cash paid (received) during the period for: | |||
Income taxes | [3] | 2,136 | 1,197 |
Interest paid | [3] | 809 | 724 |
Interest rate hedges | [3] | $ (72) | $ (71) |
[1] | Amounts may not add due to rounding. | ||
[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] | As a result of the enactment of the TCJA in December 2017, Pfizer’s Provision for taxes on income for (i) the six months ended June 30, 2019 was favorably impacted by approximately $285 million , primarily as a result of additional guidance issued by the U.S. Department of Treasury and (ii) the six months ended July 1, 2018 was favorably impacted by approximately $68 million , primarily related to certain tax initiatives associated with the lower U.S. tax rate as a result of the TCJA. | ||
[6] | For additional information, see Notes to Consolidated Financial Statements–– Note 2B. Acquisitions, Divestitures, Assets and Liabilities Held for Sale, Licensing Arrangements, Research and Development and Collaborative Arrangements, Equity-Method Investments and Privately Held Investment: Divestitures in our 2018 Financial Report. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | ||
Statement of Cash Flows [Abstract] | |||
TCJA benefit | [1],[2] | $ 285 | $ 68 |
[1] | Amounts may not add due to rounding. | ||
[2] | As a result of the enactment of the TCJA in December 2017, Pfizer’s Provision for taxes on income for (i) the six months ended June 30, 2019 was favorably impacted by approximately $285 million , primarily as a result of additional guidance issued by the U.S. Department of Treasury and (ii) the six months ended July 1, 2018 was favorably impacted by approximately $68 million , primarily related to certain tax initiatives associated with the lower U.S. tax rate as a result of the TCJA. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 in 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 26, 2019 and May 27, 2018 . 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 June 30, 2019 and July 1, 2018 . 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 results for the interim periods presented. 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 2018 Financial Report. At the beginning of our 2019 fiscal year, we began to manage our commercial operations through a new global structure consisting of three business segments––Pfizer Biopharmaceuticals Group (Biopharma), Upjohn and through July 31, 2019 , Consumer Healthcare. Biopharma and Upjohn are the only reportable segments. We have revised prior-period segment information to reflect the reorganization. For additional information, see Note 13 . 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. In the first quarter of 2019 , as of January 1, 2019 , we adopted four new accounting standards. See Note 1B for further information. Our recent significant business development activities include: • Formation of a New Consumer Healthcare Joint Venture ––On July 31, 2019 , which fell in the third fiscal quarter of 2019, we closed the transaction in which we and GSK combined our respective consumer healthcare businesses into a new consumer healthcare joint venture that operates globally under the GSK Consumer Healthcare name. Assets and liabilities associated with our Consumer Healthcare business were reclassified as held for sale in the consolidated balance sheets as of June 30, 2019 and December 31, 2018. • Acquisition of Array BioPharma Inc. ––On July 30, 2019 , which fell in the third fiscal quarter of 2019, we acquired Array, a commercial stage biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule medicines to treat cancer and other diseases of high unmet need, for $48 per share in cash, for a total enterprise value of approximately $11.4 billion . We financed the majority of the transaction with debt and the balance with existing cash. • Agreement to Combine Upjohn with Mylan ––On July 29, 2019, which fell in the third fiscal quarter of 2019, we announced that we entered into a definitive agreement to combine Upjohn with Mylan, creating a new global pharmaceutical company. Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, Upjohn is expected to be spun off or split off to Pfizer’s shareholders and simultaneously combined with Mylan. Pfizer shareholders would own 57% of the combined new company, and Mylan shareholders would own 43% . The transaction is expected to be tax free to Pfizer and Pfizer shareholders. The transaction is anticipated to close in mid-2020, subject to Mylan shareholder approval and customary closing conditions, including receipt of regulatory approvals. • Acquisition of Therachon Holding AG ––On July 1, 2019, which fell in the third fiscal quarter of 2019, we acquired all the remaining shares of Therachon, a privately-held clinical-stage biotechnology company focused on rare diseases, with assets in development for the treatment of achondroplasia, a genetic condition and the most common form of short-limb dwarfism, for $340 million upfront, plus potential milestone payments of up to $470 million , contingent on the achievement of key milestones in the development and commercialization of the lead asset TA-46. In 2018, Pfizer acquired 3% of Therachon’s outstanding shares. For additional information, see Note 2 below and Notes to Consolidated Financial Statements–– Note 2. Acquisitions, Divestitures, Assets and Liabilities Held for Sale, Licensing Arrangements, Research and Development and Collaborative Arrangements, Equity-Method Investments and Privately Held Investment in Pfizer’s 2018 Financial Report. B. Adoption of New Accounting Standards On January 1, 2019, we adopted four new accounting standards. Leases ––On January 1, 2019, we adopted a new accounting standard for leases and changed our lease policies accordingly. Under the new standard, the most significant change is the requirement of balance sheet recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. We adopted the new accounting standard utilizing the modified retrospective method using a simplified transition approach, and, therefore, no adjustments were made to our prior period financial statements. We have elected the package of practical expedients for transition which are permitted in the new standard. Accordingly, we did not reassess whether (i) any expired or existing contracts are or contain leases under the new standard, (ii) classification of leases as operating leases or capital leases would be different under the new standard, or (iii) any initial direct costs would have met the definition of initial direct costs under the new standard. Additionally, we did not elect to use hindsight in determining the lease term for existing leases as of January 1, 2019. We recorded noncurrent ROU assets of $1.4 billion and current and noncurrent operating lease liabilities of $1.4 billion as of January 1, 2019. We also recorded the cumulative effect of adopting the standard as an adjustment to increase the opening balance of Retained earnings by $30 million on a pre-tax basis ( $20 million after-tax), relating to previously deferred sale-leaseback gains that can be recognized under the new rules. Adopting the standard related to leases impacted our prior period condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) As Previously Reported Balance at December 31, 2018 Effect of Change Higher/(Lower) Balance at January 1, 2019 Other current assets $ 2,461 $ (1 ) $ 2,460 Noncurrent deferred tax assets and other noncurrent tax assets 1,924 (11 ) 1,913 Other noncurrent assets 2,799 1,351 4,149 Other current liabilities 10,753 258 11,011 Other noncurrent liabilities 5,850 1,060 6,910 Retained earnings 89,554 20 89,574 Adoption of the standard related to leases did not have a material impact on our condensed consolidated statements of income or condensed consolidated statements of cash flows for the six months ended June 30, 2019 . For additional information, see Note 1D . Amortization Period for Certain Callable Debt Securities Held at a Premium ––We prospectively adopted the standard, which shortens the amortization period for certain callable debt securities held at a premium. The new guidance requires the premium to be amortized to the earliest call date. We do not have any investments with features subject to this standard and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity and Accounting for Certain Financial Instruments with Down Round Features ––We prospectively adopted the standard, which changes the accounting for warrants or convertible instruments that include a down round feature. We do not have any financial instruments with features subject to this standard and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. Accounting for Share-Based Payments to Nonemployees ––We prospectively adopted the standard, which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. We do not have any share-based awards issued to nonemployees and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. On January 1, 2018, we adopted eleven new accounting standards. For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 included in our 2018 Financial Report. C. Revenues and Trade Accounts Receivable Our accruals for Medicare rebates, Medicaid and related state program rebates, performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts totaled $5.6 billion as of June 30, 2019 and $5.4 billion as of December 31, 2018 . The following table provides information about the balance sheet classification of these accruals: (MILLIONS OF DOLLARS) June 30, December 31, 2018 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,226 $ 1,288 Other current liabilities : Accrued rebates 3,256 3,208 Other accruals 620 531 Other noncurrent liabilities 472 399 Total accrued rebates and other accruals $ 5,574 $ 5,426 D. Leases On January 1, 2019, we adopted a new accounting standard for leases. For further information, see Note 1B . We lease real estate, fleet, and equipment for use in our operations. Our leases generally have lease terms of 1 to 30 years, some of which include options to terminate or extend leases for up to 5 to 10 years or on a month-to-month basis. We include options that are reasonably certain to be exercised as part of the determination of lease terms. We may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options are not exercised. Residual value guarantees are generally not included within our operating leases with the exception of some fleet leases. In addition to base rent payments, the leases may require us to pay directly for taxes and other non-lease components, such as insurance, maintenance and other operating expenses, which may be dependent on usage or vary month-to-month. Variable lease payments amounted to $59 million for the three months ended June 30, 2019 and $118 million for the six months ended June 30, 2019 . We have elected the practical expedient in the new standard to not separate non-lease components from lease components in calculating the amounts of ROU assets and lease liabilities for all underlying asset classes. We determine if an arrangement is a lease at inception of the contract in accordance with guidance detailed in the new standard and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. For operating leases, the ROU assets and liabilities are presented in our condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) Balance Sheet Classification Balance at June 30, 2019 ROU assets Other noncurrent assets $ 1,273 Lease liabilities (short-term) Other current liabilities 263 Lease liabilities (long-term) Other noncurrent liabilities 1,026 Our total lease costs are as follows: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, 2019 June 30, 2019 Operating lease cost $ 100 $ 200 Variable lease cost 59 118 Sublease income (11 ) (21 ) Total lease cost $ 148 $ 297 Other supplemental information includes the following: (MILLIONS OF DOLLARS) Weighted-Average Remaining Contractual Lease Term (Years) as of June 30, 2019 Weighted-Average Discount Rate as of June 30, 2019 Six Months Ended June 30, 2019 Operating leases 7.1 3.7 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 156 ROU assets obtained in exchange for new operating lease liabilities $ 122 The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of June 30, 2019: (MILLIONS OF DOLLARS) Period Operating Lease Liabilities Next one year (a) $ 302 1-2 years 254 2-3 years 216 3-4 years 171 4-5 years 122 Thereafter 419 Total undiscounted lease payments 1,483 Less: Imputed interest 195 Present Value of Minimum Lease Payments 1,288 Less: Current portion 263 Noncurrent portion $ 1,026 (a) Reflects lease payments due within 12 months subsequent to the balance sheet date. In April 2018, we entered an agreement to lease space in an office building in New York City. We expect to take control of the property in 2021 and relocate our global headquarters to this new office building in 2022. Our future minimum rental commitment under this 20 -year lease is approximately $1.7 billion . Prior to our adoption of the new lease standard, rental expense, net of sublease income, was $301 million in 2018, $314 million in 2017 and $292 million in 2016. As of December 31, 2018, the future minimum rental commitments under non-cancelable operating leases follow: (MILLIONS OF DOLLARS) 2019 2020 2021 2022 2023 After 2023 Lease commitments $ 300 $ 252 $ 210 $ 267 $ 248 $ 2,040 |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale On July 31, 2019 , which fell in the third fiscal quarter of 2019, we closed the transaction in which we and GSK combined our respective consumer healthcare businesses into a new consumer healthcare joint venture that operates globally under the GSK Consumer Healthcare name. In exchange for contributing our Consumer Healthcare business, we received a 32% equity stake in the new company and GSK owns the remaining 68% . Upon the closing of the transaction, we deconsolidated our Consumer Healthcare business and expect to recognize a gain in our fiscal third quarter of 2019 for the difference in the fair value of our 32% equity stake in the new company and the carrying value of our Consumer Healthcare business. We will account for our 32% equity stake in the new company as an equity-method investment. Assets and liabilities associated with our Consumer Healthcare business were reclassified as held for sale in the consolidated balance sheets as of June 30, 2019 and December 31, 2018. The Consumer Healthcare business assets held for sale are reported in Assets held for sale and Consumer Healthcare business liabilities held for sale are reported in Liabilities held for sale . This includes the Consumer Healthcare business tax assets and liabilities related to fully dedicated consumer healthcare subsidiaries. The amounts associated with the Consumer Healthcare business, as well as other assets classified as held for sale consisted of the following: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Assets Held for Sale Cash and cash equivalents $ 53 $ 32 Trade accounts receivable, less allowance for doubtful accounts 555 532 Inventories 580 538 Other current assets 56 56 PP&E 714 675 Identifiable intangible assets, less accumulated amortization 5,753 5,763 Goodwill 1,965 1,972 Noncurrent deferred tax assets and other noncurrent tax assets 55 54 Other noncurrent assets 91 57 Total Consumer Healthcare assets held for sale 9,821 9,678 Other assets held for sale (a) 56 46 Assets held for sale $ 9,877 $ 9,725 Liabilities Held for Sale Trade accounts payable $ 348 $ 406 Income taxes payable 63 39 Accrued compensation and related items 79 93 Other current liabilities 334 353 Pension benefit obligations, net 41 39 Postretirement benefit obligations, net 34 33 Noncurrent deferred tax liabilities 1,036 870 Other noncurrent liabilities 74 56 Total Consumer Healthcare liabilities held for sale $ 2,009 $ 1,890 (a) Other assets held for sale consist of PP&E. As a part of Pfizer, pre-tax income on a management business unit basis for the Consumer Healthcare business was $274 million for the second quarter of 2019 and $554 million for the six months ended June 30, 2019 , and $249 million for the second quarter of 2018 and $514 million for the six months ended July 1, 2018 . |
Restructuring Charges and Other
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 6 Months Ended |
Jun. 30, 2019 | |
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. 2017-2019 Initiatives and Organizing for Growth During 2018, as we reviewed our business opportunities and challenges and the way in which we think about our business operations, we determined that at the start of our 2019 fiscal year, we would begin operating under our new commercial structure, which reorganized our operations into three businesses –– Biopharma, a science-based innovative medicines business; Upjohn, a global, primarily off-patent branded and generic established medicines business; and through July 31, 2019, a Consumer Healthcare business (see Note 13 ). To operate effectively in this structure and position ourselves for future growth, we are focused on creating a simpler, more efficient operating structure within each business as well as the functions that support them. Beginning in the fourth quarter of 2018, we reviewed previously planned initiatives and new initiatives to ensure that there was alignment around our new structure and combined the 2017-2019 initiatives with our current Organizing for Growth initiatives to form one cohesive plan. Initiatives for the combined program include activities related to the optimization of our manufacturing plant network, the centralization of our corporate and platform functions, and the simplification and optimization of our operating business structure and functions that support them. From 2017 through June 30, 2019 , we incurred approximately $774 million associated with manufacturing optimization, and approximately $871 million associated with other activities. In 2019, we expect restructuring, implementation and additional depreciation charges of about $600 million and, of that amount, we expect approximately 20% of the total charges will be non-cash. Current-Period Key Activities For the first six months of 2019 , we incurred costs of $32 million composed of $180 million associated with the 2017-2019 and Organizing for Growth initiatives, $51 million associated with the integration of Hospira and income of $199 million primarily due to the reversal of certain accruals upon the effective favorable settlement of a U.S. IRS audit for multiple tax years and 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) June 30, July 1, June 30, July 1, Restructuring charges/(credits): Employee terminations $ (166 ) $ (21 ) $ (167 ) $ (29 ) Asset impairments (9 ) (6 ) — (4 ) Exit costs 31 3 34 — Restructuring credits (a) (144 ) (24 ) (134 ) (33 ) Integration costs (b) 29 68 64 120 Restructuring charges and certain acquisition-related costs (115 ) 44 (69 ) 87 Net periodic benefit costs recorded in Other (income)/deductions––net 4 29 10 61 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (c) : Cost of sales 7 13 15 30 Selling, informational and administrative expenses 1 — 2 — Research and development expenses 2 — 5 — Total additional depreciation––asset restructuring 10 13 23 31 Implementation costs recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 17 20 31 36 Selling, informational and administrative expenses 16 16 25 34 Research and development expenses 9 7 13 13 Total implementation costs 42 44 69 82 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ (59 ) $ 131 $ 32 $ 262 (a) In the second quarter and first six months of 2019 , restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B ). In the three and six months ended July 1, 2018 , restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. The restructuring activities for 2019 are associated with the following: • For the second quarter of 2019 , Biopharma ( $62 million credit ); Upjohn ( $9 million credit ); and Other ( $74 million credit). • For the first six months of 2019 , Biopharma ( $48 million credit ); Upjohn ( $22 million credit ); and Other ( $63 million credit). The restructuring activities for 2018 are associated with the following: • For the second quarter of 2018, total reportable segments ( $10 million credit); and Other ( $13 million credit). • For the first six months of 2018, total reportable segments ( $24 million credit); and Other ( $9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments. (b) Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. In the second quarter and first six months of 2019 and 2018, integration costs were primarily related to our acquisition of Hospira. (c) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (d) Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. The following table provides the components of and changes in our restructuring accruals: (MILLIONS OF DOLLARS) Employee Termination Costs Asset Impairment Charges Exit Costs Accrual Balance, December 31, 2018 (a) $ 1,203 $ — $ 49 $ 1,252 Provision/(credit) (b) (167 ) — 34 (134 ) Utilization and other (c) (303 ) — (18 ) (321 ) Balance, June 30, 2019 (d) $ 733 $ — $ 64 $ 797 (a) Included in Other current liabilities ( $823 million ) and Other noncurrent liabilities ( $428 million ). (b) Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information. (c) Includes adjustments for foreign currency translation. (d) Included in Other current liabilities ( $593 million ) and Other noncurrent liabilities ( $204 million ). |
Other (Income)_Deductions - Net
Other (Income)/Deductions - Net | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, July 1, June 30, July 1, Interest income (a) $ (59 ) $ (80 ) (125 ) (157 ) Interest expense (a) 389 326 750 635 Net interest expense 330 245 625 478 Royalty-related income (b) (231 ) (121 ) (320 ) (217 ) Net gains on asset disposals — (15 ) (1 ) (22 ) Net gains recognized during the period on investments in equity securities (c) (36 ) (257 ) (147 ) (375 ) Net realized losses on sales of investments in debt securities — 8 — 12 Income from collaborations, out-licensing arrangements and sales of compound/product rights (d) (22 ) (174 ) (104 ) (316 ) Net periodic benefit credits other than service costs (e) (51 ) (84 ) (91 ) (166 ) Certain legal matters, net (f) 15 (88 ) 19 (107 ) Certain asset impairments (g) 10 40 160 40 Business and legal entity alignment costs (h) 137 1 256 4 Net losses on early retirement of debt (i) — — 138 3 Other, net (j) (27 ) (106 ) (318 ) (64 ) Other (income)/deductions––net $ 126 $ (551 ) $ 218 $ (728 ) (a) Interest income decreased in the second quarter and first six months of 2019 , primarily driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2019 , mainly as a result of higher short-term interest rates, as well as the retirement of lower-coupon debt and the issuance of new debt with a higher coupon than the debt outstanding for the comparative prior year periods. (b) The increase in royalty-related income for the second quarter and first six months of 2019 is primarily due to a one-time favorable resolution in the second quarter of 2019 of a legal dispute for $82 million . (c) The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . (d) Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. In the first six months of 2019 , mainly includes $68 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® (fluticasone propionate and salmeterol inhalation powder). In the second quarter of 2018 , primarily included, among other things, $88 million in milestone income from multiple licensees and an upfront payment to us of $75 million for the sale of an α-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid (AMPA) receptor potentiator for cognitive impairment associated with schizophrenia (CIAS) to Biogen Inc. In the first six months of 2018, mainly includes, among other things, all of the factors discussed above for the second quarter of 2018, as well as a $75 million milestone payment received from Shire related to their first dosing of a patient in a Phase 3 clinical trial of a compound out-licensed by Pfizer to Shire for the treatment of ulcerative colitis, and a $40 million milestone payment from Merck in conjunction with the approval of ertugliflozin in the EU. (e) For additional information, see Note 10 . (f) In the second quarter and first six months of 2018, primarily represented the reversal of a legal accrual where a loss was no longer deemed probable. (g) The second quarter and first six months of 2019 include an intangible asset impairment charge of $10 million and the second quarter and first six months of 2018 included an intangible asset impairment charge of $31 million , which are all related to a finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, associated with Biopharma and reflect , among other things, updated commercial forecasts. The first six months of 2019 also includes intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, which relates to a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases; and (ii) $40 million related to a Biopharma developed technology right, acquired in connection with our acquisition of King, for government defense products. The WRDM IPR&D intangible asset impairment charge was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development. The intangible asset impairment charge related to the Biopharma developed technology right reflects, among other things, updated commercial forecasts including manufacturing cost assumptions. In addition, the first six months of 2019 , includes other asset impairments of $20 million . (h) In the second quarter and first six months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. In the second quarter and first six months of 2018, represents expenses for changes to our infrastructure to align our commercial operations that existed through December 31, 2018, 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. (i) In the first six months of 2019 , represents net losses due to the early retirement of debt in the first quarter of 2019, inclusive of the related termination of cross-currency swaps. (j) The second quarter of 2019 includes, among other things, charges of $81 million , reflecting the change in the fair value of contingent consideration, dividend income of $76 million from our investment in ViiV and $25 million of income from insurance recoveries related to Hurricane Maria. The first six months of 2019 includes, among other things, dividend income of $140 million from our investment in ViiV and $50 million of income from insurance recoveries related to Hurricane Maria. The second quarter of 2018 included, among other things, dividend income of $76 million from our investment in ViiV, and charges of $23 million , reflecting the change in the fair value of contingent consideration. The first six months of 2018 included, among other things, dividend income of $135 million from our investment in ViiV, and charges of $135 million reflecting the change in the fair value of contingent consideration. The second quarter and first six months of 2018 also included a non-cash $50 million pre-tax gain on the contribution of Pfizer’s allogeneic CAR T development program assets obtained from Cellectis S.A. and Les Laboratoires Servier SAS in connection with our contribution agreement entered into with Allogene, and a non-cash $17 million gain on the cash settlement of a liability that we incurred in April 2018 upon the EU approval of Mylotarg. The following table provides additional information about the intangible assets that were impaired during 2019 in Other (income)/deductions: Fair Value (a) Six Months Ended June 30, 2019 (MILLIONS OF DOLLARS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets –– IPR&D (b) $ — $ — $ — $ — $ 90 Intangible assets––Developed technology rights (b) 13 — — 13 50 Total $ 13 $ — $ — $ 13 $ 140 (a) The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. (b) Reflects intangible assets written down to fair value in the first six months of 2019 . Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters
Tax Matters | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Matters | Tax Matters A. Taxes on Income from Continuing Operations During the second quarter of 2019, Pfizer reached settlement of disputed issues at the IRS Office of Appeals, thereby settling all issues related to U.S. tax returns of Pfizer for the years 2009-2010. As a result of settling these years, in the second quarter of 2019 we recorded a benefit of approximately $1.4 billion , representing tax and interest. Our effective tax rate for continuing operations was (22.1)% for the second quarter of 2019 , compared to 14.3% for the second quarter of 2018 and was (5.7)% for the first six months of 2019 , compared to 13.9% for the first six months of 2018 . The lower effective tax rate for the second quarter and first six months of 2019 in comparison with the same periods in 2018 was primarily due to: • an increase in tax benefits associated with the resolution of certain tax positions pertaining to prior years, primarily resulting from the aforementioned favorable settlement with the IRS; • the tax benefit recorded as a result of additional guidance issued by the U.S. Department of Treasury related to the enactment of the TCJA, as well as • the favorable change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business . Our estimated $15 billion repatriation tax liability on accumulated post-1986 foreign earnings for which we plan to elect, with the filing of our 2018 U.S. Federal Consolidated Income Tax Return, payment over eight years through 2026 is reported in Income taxes payable (approximately $750 million ) and the remaining liability is reported in Other taxes payable in our consolidated balance sheet as of June 30, 2019 . The first installment of $750 million was paid in April 2019. Our obligations may vary as a result of changes in our uncertain tax positions and/or availability of attributes such as foreign tax and other credit carryforwards. 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: • During the second quarter of 2019, Pfizer reached settlement of disputed issues at the IRS Office of Appeals, thereby settling all issues related to U.S. tax returns of Pfizer for the years 2009-2010. As a result of settling these years, in the second quarter of 2019 we recorded a benefit of approximately $1.4 billion , representing tax and interest. • With respect to Pfizer, tax years 2011-2015 are currently under audit. Tax years 2016-2019 are open, but not under audit. All other tax years are closed. In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2013-2019), Japan (2017-2019), Europe (2011-2019, primarily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany), Latin America (1998-2019, primarily reflecting Brazil) and Puerto Rico (2014-2019). C. Tax Provision/(Benefit) on Other Comprehensive Loss The following table provides the components of Tax provision/(benefit) on other comprehensive loss : Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Foreign currency translation adjustments, net (a) $ (17 ) $ 101 $ 10 $ 67 Unrealized holding gains/(losses) on derivative financial instruments, net (53 ) 8 6 4 Reclassification adjustments for (gains)/losses included in net income (4 ) 72 (59 ) 65 Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — 1 (57 ) 79 (53 ) 70 Unrealized holding gains/(losses) on available-for-sale securities, net (1 ) (48 ) 4 (28 ) Reclassification adjustments for (gains)/losses included in net income 3 20 5 (2 ) Reclassification adjustments for tax on unrealized gains from AOCI to Retained earnings (c) — — — (45 ) 2 (29 ) 9 (76 ) Benefit plans: actuarial gains/(losses), net (1 ) (13 ) (1 ) 25 Reclassification adjustments related to amortization 15 14 18 28 Reclassification adjustments related to settlements, net — 7 1 15 Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — 637 Other 8 27 3 6 23 34 21 712 Benefit plans: prior service costs and other, net — — — — Reclassification adjustments related to amortization of prior service costs and other, net (11 ) (11 ) (22 ) (22 ) Reclassification adjustments related to curtailments of prior service costs and other, net — 4 — (3 ) Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — (144 ) Other — (6 ) — — (11 ) (13 ) (22 ) (168 ) Tax provision/(benefit) on other comprehensive loss $ (59 ) $ 173 $ (34 ) $ 605 (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. (b) For additional information on the adoption of a new accounting standard related to reclassification of certain tax effects from AOCI, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. (c) For additional information on the adoption of a new accounting standard related to financial assets and liabilities, see Notes to Consolidated Financial Statements–– Note 1B . Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 $ (6,075 ) $ 167 $ (68 ) $ (6,027 ) $ 728 $ (11,275 ) Other comprehensive income/(loss) (a) (167 ) (200 ) 61 116 (70 ) (260 ) Balance, June 30, 2019 $ (6,242 ) $ (33 ) $ (8 ) $ (5,911 ) $ 658 $ (11,535 ) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $2 million loss for the first six months of 2019 . As of June 30, 2019 , with respect to derivative financial instruments, the amount of unrealized pre-tax net gains on derivative financial instruments estimated to be reclassified into income within the next 12 months is approximately $153 million . The net gains are expected to be offset primarily by net losses from reclassification adjustments related to foreign currency exchange-denominated forecasted intercompany inventory sales and available-for-sale debt securities. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments A. Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the financial assets and liabilities measured at fair value using a market approach on a recurring basis by balance sheet categories and fair value hierarchy level as defined in Notes to Consolidated Financial Statements–– Note 1E. Basis of Presentation and Significant Accounting Policies: Fair Value in Pfizer’s 2018 Financial Report: June 30, 2019 December 31, 2018 (MILLIONS OF DOLLARS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets measured at fair value on a recurring basis: Short-term investments Classified as equity securities: Money market funds $ 4,727 $ — $ 4,727 $ 1,571 $ — $ 1,571 Equity (a) 26 15 12 29 17 11 4,753 15 4,739 1,600 17 1,583 Classified as available-for-sale debt securities: Government and agency—non-U.S. 3,014 — 3,014 9,609 — 9,609 Corporate and other 2,013 — 2,013 5,482 — 5,482 5,027 — 5,027 15,091 — 15,091 Total short-term investments 9,780 15 9,766 16,691 17 16,674 Other current assets Derivative assets: Interest rate contracts 79 — 79 97 — 97 Foreign exchange contracts 334 — 334 477 — 477 Total other current assets 412 — 412 574 — 574 Long-term investments Classified as equity securities: Equity (a) 1,425 1,400 25 1,223 1,193 30 Classified as trading securities: Equity funds 53 53 — 50 50 — 1,477 1,452 25 1,273 1,243 30 Classified as available-for-sale debt securities: Government and agency—non-U.S. 45 — 45 94 — 94 Corporate and other 385 — 385 397 — 397 430 — 430 491 — 491 Total long-term investments 1,907 1,453 454 1,764 1,243 521 Other noncurrent assets Derivative assets: Interest rate contracts 453 — 453 335 — 335 Foreign exchange contracts 249 — 249 232 — 232 Total other noncurrent assets 702 — 702 566 — 566 Total assets $ 12,801 $ 1,467 $ 11,334 $ 19,595 $ 1,260 $ 18,335 Financial liabilities measured at fair value on a recurring basis: Other current liabilities Derivative liabilities: Interest rate contracts $ 1 $ — $ 1 $ 5 $ — $ 5 Foreign exchange contracts 109 — 109 78 — 78 Total other current liabilities 110 — 110 82 — 82 Other noncurrent liabilities Derivative liabilities: Interest rate contracts — — — 378 — 378 Foreign exchange contracts 467 — 467 564 — 564 Total other noncurrent liabilities 467 — 467 942 — 942 Total liabilities $ 577 $ — $ 577 $ 1,024 $ — $ 1,024 (a) As of June 30, 2019 , short-term equity securities of $11 million and long-term equity securities of $24 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. As of December 31, 2018 , short-term equity securities of $11 million and long-term equity securities of $29 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis The following table presents the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (MILLIONS OF DOLLARS) Total Level 2 Total Level 2 Financial Liabilities Long-term debt, excluding the current portion $ 36,168 $ 40,301 $ 40,301 $ 32,909 $ 35,260 $ 35,260 The differences between the estimated fair values and carrying values of held-to-maturity debt securities, restricted stock and private equity securities, and short-term borrowings not measured at fair value on a recurring basis were not significant as of June 30, 2019 or December 31, 2018 . The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs. The fair value measurements of our private equity securities, which represent investments in the life sciences sector, are based on Level 3 inputs using a market approach. In addition, as of June 30, 2019 and December 31, 2018 , we had long-term receivables whose fair value is based on Level 3 inputs. As of June 30, 2019 and December 31, 2018 , the differences between the estimated fair values and carrying values of these receivables were not significant. Total Short-Term and Long-Term Investments The following table represents our investments by classification type: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Short-term investments Equity securities $ 4,753 $ 1,600 Available-for-sale debt securities 5,027 15,091 Held-to-maturity debt securities 1,347 1,003 Total Short-term investments $ 11,128 $ 17,694 Long-term investments Equity securities $ 1,425 $ 1,223 Trading equity funds securities 53 50 Available-for-sale debt securities 430 491 Held-to-maturity debt securities 47 59 Private equity investments at cost, as adjusted, or equity method 951 944 Total Long-term investments $ 2,905 $ 2,767 Held-to-maturity cash equivalents $ 163 $ 199 B. Investments At June 30, 2019, the investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt and equity securities at June 30, 2019 and December 31, 2018 is as follows, including, as of June 30, 2019, the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: June 30, 2019 December 31, 2018 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 3,056 $ 9 $ (7 ) $ 3,059 $ 3,014 $ 45 $ — $ 3,059 $ 9,754 $ 7 $ (58 ) $ 9,703 Corporate and other (a) 2,409 1 (12 ) 2,398 2,013 382 3 2,398 5,905 — (27 ) 5,878 Held-to-maturity debt securities Time deposits and other 693 — — 693 646 10 37 693 668 — — 668 Government and agency –– non-U.S. 865 — — 865 864 — — 865 592 — — 592 Total debt securities $ 7,023 $ 10 $ (19 ) $ 7,014 $ 6,537 $ 437 $ 40 $ 7,014 $ 16,920 $ 8 $ (85 ) $ 16,842 (a) Primarily issued by a diverse group of corporations. The following table presents the net unrealized (gains) and losses for the period that relate to equity securities still held at the reporting date, calculated as follows: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Net gains recognized during the period on investments in equity securities (a) $ (36 ) $ (257 ) $ (147 ) $ (375 ) Less: Net gains recognized during the period on equity securities sold during the period (6 ) (27 ) (10 ) (46 ) Net unrealized gains during the reporting period on equity securities still held at the reporting date $ (31 ) $ (230 ) $ (137 ) $ (328 ) (a) The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . C. Short-Term Borrowings Short-term borrowings include: (MILLIONS OF DOLLARS) June 30, December 31, Commercial paper $ 6,705 $ 3,100 Current portion of long-term debt, principal amount 2,139 4,781 Other short-term borrowings, principal amount (a) 1,691 966 Total short-term borrowings, principal amount 10,535 8,847 Net fair value adjustments related to hedging and purchase accounting — (5 ) Net unamortized discounts, premiums and debt issuance costs (29 ) (11 ) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 10,507 $ 8,831 (a) Other short-term borrowings primarily include cash collateral. For additional information, see Note 7E D. Long-Term Debt New Issuances In the first quarter of 2019, we issued the following senior unsecured notes: Principal (MILLIONS OF DOLLARS) Maturity Date As of June 30, 2019 2.800% notes (a) March 11, 2022 $ 500 2.950% notes (a) March 15, 2024 750 3.450% notes (a) March 15, 2029 1,750 3.900% notes (a) March 15, 2039 750 4.000% notes (a) March 15, 2049 1,250 Total long-term debt issued in the first quarter of 2019 (b) $ 5,000 (a) Fixed rate notes may be redeemed by us at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. (b) The weighted-average effective interest rate for the notes at issuance was 3.57% . Retirements In January 2019, we repurchased all €1.1 billion ( $1.3 billion , at exchange rates on settlement) principal amount outstanding of the 5.75% euro-denominated debt that was due June 2021 before the maturity date at a redemption value of €1.3 billion ( $1.5 billion , at exchange rates on settlement). As a result, in the first quarter of 2019, we recorded a net loss of approximately $138 million , which included the related termination of cross-currency swaps, and that was recorded in Other (income)/deductions––net in the condensed consolidated statement of income in the first quarter of 2019. For additional information, see Note 4 . The following table provides the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS OF DOLLARS) June 30, December 31, Total long-term debt, principal amount $ 35,082 $ 32,558 Net fair value adjustments related to hedging and purchase accounting 1,264 479 Net unamortized discounts, premiums and debt issuance costs (185 ) (136 ) Other long-term debt 6 7 Total long-term debt, carried at historical proceeds, as adjusted $ 36,168 $ 32,909 Current portion of long-term debt, carried at historical proceeds, as adjusted $ 2,139 $ 4,776 E. Derivative Financial Instruments and Hedging Activities Foreign Exchange Risk A significant portion of our revenues, earnings and net investments in foreign affiliates is exposed to changes in foreign exchange rates. We manage our foreign exchange risk, in part, through operational means, including managing same-currency revenues in relation to same-currency costs and same-currency assets in relation to same-currency liabilities. We also manage our foreign exchange risk, depending on market conditions, through fair value, cash flow, and net investment hedging programs through the use of derivative financial instruments and foreign currency debt. These financial instruments serve to protect net income against the impact of remeasurement into another currency, or against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative financial instruments primarily hedge or offset exposures in the euro, Japanese yen, U.K. pound, Chinese renminbi and Swedish krona . As a part of our cash flow hedging program, we designate foreign exchange contracts to hedge a portion of our forecasted euro, Japanese yen, Chinese renminbi, Canadian dollar, U.K. pound and Australian dollar -denominated intercompany inventory sales expected to occur no more than two years from the date of each hedge. Interest Rate Risk Our interest-bearing investments and borrowings are subject to interest rate risk. With respect to our investments, we strive to maintain a predominantly floating-rate basis position, but our strategy may change based on prevailing market conditions. We currently borrow primarily on a long-term, fixed rate basis. From time to time, depending on market conditions, we will change the profile of our outstanding debt by entering into derivative financial instruments like interest rate swaps. We entered into derivative financial instruments to hedge or offset the fixed interest rates on the hedged item, matching the amount and timing of the hedged item. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt. The following table provides the fair value of the derivative financial instruments and the related notional amounts presented between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 18,012 $ 483 $ 519 $ 22,984 $ 654 $ 586 Interest rate contracts 8,812 531 1 11,145 432 383 1,015 520 1,085 968 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,615 99 58 $ 15,154 55 55 Total $ 1,114 $ 577 $ 1,140 $ 1,024 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $6.7 billion as of June 30, 2019 and $5.8 billion as of December 31, 2018. The following tables provide information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a), (b) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, June 30, July 1, Three Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (204 ) $ 107 $ 48 $ (330 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 28 20 32 20 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 483 (121 ) — — — — Hedged item (483 ) 121 — — — — Foreign exchange contracts — 12 — — — — Hedged item — (12 ) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (48 ) 153 — — The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness — — 52 25 31 21 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (d) — — (16 ) 85 — — Foreign currency long-term debt (d) — — (27 ) 186 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (4 ) 61 — — — — All other net — — — 1 — 1 $ (4 ) $ 62 $ (216 ) $ 577 $ 111 $ (289 ) Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a), (b) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, June 30, July 1, Six Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ 6 $ (36 ) $ 257 $ (402 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 84 48 86 48 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 813 (520 ) — — — — Hedged item (813 ) 520 — — — — Foreign exchange contracts — 4 — — — — Hedged item — (4 ) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (25 ) 148 — — The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness — — 93 27 55 26 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (d) — — 19 43 — — Foreign currency long-term debt (d) — — 11 94 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (124 ) 6 — — — — All other net — — 1 1 — 1 $ (124 ) $ 6 $ 188 $ 325 $ 398 $ (328 ) (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) For derivative financial instruments in cash flow hedge relationships, the gains and losses are included in Other comprehensive income–– Unrealized holding gains/(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––Foreign currency translation adjustments, net. (c) Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $155 million within the next 12 months into Cost of sales. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. (d) Short-term borrowings include foreign currency short-term borrowings with carrying values of $1.1 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. Long-term debt includes foreign currency long-term borrowings with carrying values of $2.0 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. The following table provides the total amount of each income and expense line in which the results of fair value or cash flow hedges are recorded: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30 July 1, Cost of sales $ 2,576 $ 2,916 $ 5,009 $ 5,479 Other (income)/deductions—net 126 (551 ) 218 (728 ) The following table provides the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges: June 30, 2019 December 31, 2018 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount (MILLIONS OF DOLLARS) Carrying Amount of Actively Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Actively Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Long-term investments $ 45 $ (1 ) $ — $ 45 $ (1 ) $ — Short-term borrowings, including current portion of long-term debt — — — 1,499 (5 ) — Long-term debt 9,321 452 435 9,952 (45 ) 129 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. Certain of our derivative instruments are covered by associated credit-support agreements that have credit-risk-related contingent features designed to reduce both counterparties’ exposure to risk of defaulting on amounts owed by the other party. As of June 30, 2019 , the aggregate fair value of these derivative instruments that are in a net liability position was $279 million , for which we have posted collateral of $283 million in the normal course of business. If there had been a downgrade to below an A rating by S&P or the equivalent rating by Moody’s, we would not have been required to post any additional collateral to our counterparties. As of June 30, 2019 , we received cash collateral of $1.6 billion from various counterparties. The collateral primarily supports the approximate fair value of our derivative contracts that are in a net asset position. With respect to the collateral received, the obligations are reported in Short-term borrowings, including current portion of long-term debt. F. Credit Risk On an ongoing basis, we review the creditworthiness of counterparties to our foreign exchange and interest rate agreements and do not expect to incur a significant loss from failure of any counterparties to perform under the agreements. There are no significant concentrations of credit risk related to our financial instruments with any individual counterparty, except for certain significant customers. For additional information on significant customers, see Notes to Consolidated Financial Statements–– Note 18C. Segment, Geographic and Other Revenue Information: Other Revenue Information in Pfizer’s 2018 Financial Report. As of June 30, 2019 , we had amounts due from a well-diversified, high quality group of banks ( $2.0 billion ) from 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 to receive cash collateral, depending on levels of exposure, our credit rating and the credit rating of the counterparty, see Note 7E above. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table provides the components of Inventories : (MILLIONS OF DOLLARS) June 30, December 31, Finished goods $ 2,494 $ 2,262 Work-in-process 5,249 4,701 Raw materials and supplies 490 546 Inventories (a) $ 8,233 $ 7,508 Noncurrent inventories not included above (b) $ 646 $ 618 (a) The change from December 31, 2018 reflects increases for certain products to meet targeted levels in the normal course of business, including inventory build for supply recovery and market demand, partially offset by a decrease due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Assets
Identifiable Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
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 : June 30, 2019 December 31, 2018 (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 $ 89,540 $ (60,949 ) $ 28,590 $ 89,430 $ (58,895 ) $ 30,535 Brands 923 (725 ) 198 923 (708 ) 215 Licensing agreements and other 1,440 (1,159 ) 281 1,436 (1,140 ) 296 91,903 (62,833 ) 29,070 91,788 (60,743 ) 31,045 Indefinite-lived intangible assets Brands and other 1,994 1,994 1,994 1,994 IPR&D 1,961 1,961 2,171 2,171 3,954 3,954 4,165 4,165 Identifiable intangible assets (a) $ 95,857 $ (62,833 ) $ 33,024 $ 95,954 $ (60,743 ) $ 35,211 (a) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization and intangible asset impairment charges, partially offset by additions for the period. See Note 4 for additional information on intangible asset impairments. Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: June 30, 2019 Biopharma Upjohn WRDM Developed technology rights 99 % 1 % — Brands, finite-lived 100 % — — Brands, indefinite-lived 42 % 58 % — IPR&D 86 % — 14 % Amortization Total amortization expense for finite-lived intangible assets was $1.2 billion for each of the second quarters of 2019 and 2018 , and $2.4 billion for the first six months of 2019 and 2018 . B. Goodwill Prior to 2019, we managed our commercial operations through two distinct business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). At the beginning of our 2019 fiscal year, we reorganized our commercial operations and our businesses are now managed through three different operating segments––Biopharma, Upjohn and through July 31, 2019 , Pfizer’s Consumer Healthcare business (see Note 13 for further information). Our Consumer Healthcare business is classified as held for sale as of December 31, 2018 and June 30, 2019 and, therefore the goodwill attributable to the Pfizer Consumer Healthcare business is included in Assets held for sale in the accompanying condensed consolidated balance sheets and not included in the table below (see Note 2 for further information). As a result of the reorganization of our commercial operations, our remaining goodwill was required to be reallocated amongst the new Biopharma and Upjohn operating segments by determining the fair value of each reporting unit under our old and new management structure and the portions being transferred. We completed this re-allocation based on relative fair value in the second quarter of 2019 and have retrospectively presented goodwill according to the new operating structure. The following table provides the components of and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) Biopharma Upjohn Total Balance, December 31, 2018 $ 42,927 $ 10,484 $ 53,411 Other (a) (47 ) (12 ) (59 ) Balance, June 30, 2019 $ 42,880 $ 10,472 $ 53,352 (a) Primarily reflects the impact of foreign exchange. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following tables provide the components of net periodic benefit cost/(credit): Three Months Ended Pension Plans U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Net periodic benefit cost/(credit): Service cost $ — $ — $ — $ — $ 31 $ 34 $ 9 $ 10 Interest cost 157 150 12 14 54 55 19 18 Expected return on plan assets (223 ) (261 ) — — (80 ) (93 ) (8 ) (9 ) Amortization of: Actuarial losses 37 30 2 3 20 26 1 2 Prior service credits (1 ) — — — (1 ) (1 ) (45 ) (45 ) Curtailments — 7 — — — — — (7 ) Settlements 2 25 — 5 — — — — Special termination benefits 1 — 3 — — — 1 — $ (27 ) $ (49 ) $ 17 $ 21 $ 25 $ 21 $ (23 ) $ (32 ) Six Months Ended Pension Plans U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Net periodic benefit cost/(credit): Service cost $ — $ — $ — $ — $ 63 $ 71 $ 19 $ 20 Interest cost 315 301 25 26 109 109 38 36 Expected return on plan assets (445 ) (524 ) — — (160 ) (185 ) (16 ) (18 ) Amortization of: Actuarial losses 74 60 5 7 41 52 2 4 Prior service costs/(credits) (2 ) 1 — — (2 ) (2 ) (89 ) (90 ) Curtailments — 9 — — — — — (14 ) Settlements 2 45 — 21 — — — — Special termination benefits 1 — 9 — — — 1 — $ (55 ) $ (107 ) $ 37 $ 55 $ 51 $ 44 $ (46 ) $ (63 ) The following table provides the amounts we contributed, and the amounts we expect to contribute during 2019, to our pension and postretirement plans from our general assets for the periods indicated: 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 June 30, 2019 $ 5 $ 99 $ 130 $ 67 Expected contributions from our general assets during 2019 (a) 11 197 191 147 (a) Contributions expected to be made for 2019 are inclusive of amounts contributed during the six months ended June 30, 2019 . The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings Per Common Share Attri
Earnings Per Common Share Attributable to Common Shareholders | 6 Months Ended |
Jun. 30, 2019 | |
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 EPS : Three Months Ended Six Months Ended (IN MILLIONS) June 30, July 1, June 30, July 1, EPS Numerator––Basic Income from continuing operations $ 5,056 $ 3,879 $ 8,945 $ 7,450 Less: Net income attributable to noncontrolling interests 10 7 15 16 Income from continuing operations attributable to Pfizer Inc. 5,046 3,872 8,929 7,434 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 5,045 3,871 8,929 7,433 Discontinued operations––net of tax — — — (1 ) Net income attributable to Pfizer Inc. common shareholders $ 5,045 $ 3,871 $ 8,929 $ 7,432 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 5,046 $ 3,872 $ 8,929 $ 7,434 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions — — — (1 ) Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 5,046 $ 3,872 $ 8,929 $ 7,432 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,562 5,866 5,598 5,911 Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements 110 86 112 93 Weighted-average number of common shares outstanding––Diluted 5,672 5,952 5,711 6,004 Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans (a) 1 3 2 2 Cash dividends declared per share $ 0.36 $ 0.34 $ 0.72 $ 0.68 (a) 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. |
Contingencies and Certain Commi
Contingencies and Certain Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Certain Commitments | Contingencies and Certain Commitments We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, including tax and legal contingencies. For a discussion of our tax contingencies, see Note 5B. For a discussion of our legal contingencies, see below. A. Legal Proceedings Our legal 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 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 jurisdictions. Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, which could be substantial, and/or criminal charges. We believe that our claims and defenses in matters in which we are a defendant 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; whether related actions have been transferred to multidistrict litigation; 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(s) at issue. 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 jurisdictions. We are also party to patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payers, governments or other parties are seeking damages from us for allegedly causing delay of generic entry. Additionally, our licensing and collaboration partners face challenges by generic drug manufacturers to patents covering products for which we have licenses or co-promotion rights. 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 were challenged in inter partes review and post-grant review proceedings in the U.S. The Patent Trial and Appeal Board refused to initiate proceedings as to two patents. In June 2018, the Patent Trial and Appeal Board ruled on another patent, holding that one claim was valid and that all other claims were invalid. The party challenging that patent has appealed the decision. In March and June 2019, an additional patent was found invalid in separate proceedings by the Patent Trial and Appeal Board. We have appealed. Challenges to other patents remain pending in jurisdictions outside the U.S. The invalidation of all of the patents in our pneumococcal portfolio could potentially allow a competitor pneumococcal vaccine into the marketplace. In the event that any of the patents are found valid and infringed, a competitor pneumococcal vaccine might be prohibited from entering the market or required to pay Pfizer a royalty. 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 Hospira subsidiaries are involved in patent and patent-related disputes over their 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, the Wyeth Group) brought a patent-infringement action against Alembic Pharmaceuticals, Ltd, Alembic Pharmaceuticals, Inc. (collectively, Alembic), Sun Pharmaceutical Industries, Inc., and Sun Pharmaceutical Industries Ltd. (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. Alembic is challenging a patent covering polymorphic forms of bosutinib, which expires in 2026, and a patent covering methods of treating chronic myelogenous leukemia, which expires in 2025. Sun is also challenging the same patent covering polymorphic forms of bosutinib that expires in 2026. In March 2017, the Wyeth Group 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. In September 2017, the case against MSN was dismissed. Also, in September 2017, the Wyeth Group brought an additional patent-infringement action against Sun in the U.S. District Court for the District of Delaware asserting the infringement and validity of two other patents challenged by Sun, covering compositions of bosutinib and methods of treating chronic myelogenous leukemia, each of which expire in 2025. 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. 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 related to the use of Precedex in an intensive care unit setting, which expired 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. 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 January 2018, the District Court ruled that one of the four patents was valid and infringed, and that the other three patents were invalid. In February and March 2018, respectively, each of Amneal and Hospira appealed the District Court decision to the U.S. Court of Appeals for the Federal Circuit. In January 2019, the U.S. Court of Appeals for the Federal Circuit affirmed the District Court’s decision. 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 certain 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 those patents. In December 2018, the District Court ruled that the asserted patents were invalid. Hospira has appealed the District Court’s decision to the U.S. Court of Appeals for the Federal Circuit. 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). In February 2019, a new stay was entered, extending the stay until the outcome of the appeal in the Fresenius case. In December 2017, Gland Pharma Limited (Gland) 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 six patents relating to the Precedex premix formulations and their use, all of which expire in 2032, were invalid or not infringed. In February 2018, Hospira filed suit against Gland in the U.S. District Court for the District of Delaware asserting the validity and infringement of four patents that are the subject of the lawsuit. The case against Gland has been stayed pending the outcome of the appeal in the Fresenius case. In December 2017, Jiangsu Hengrui Medicine Co., Ltd. (Hengrui) 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 six patents relating to the Precedex premix formulations and their use, all of which expire in 2032, were invalid or not infringed. In February 2018, Hospira filed suit against Hengrui in the U.S. District Court for the District of Delaware asserting the validity and infringement of four patents that are the subject of the lawsuit. The case against Hengrui has been stayed pending the outcome of the appeal in the Fresenius case. In February 2018, Baxter Healthcare Corporation (Baxter) filed a declaratory judgment action against Hospira in the U.S. District Court for the District of Delaware seeking a declaration of non-infringement of four patents relating to the Precedex premix formulations and their use. One of the patents included in the action related to the use of Precedex in an intensive care unit setting and expired in 2019 and the other three patents expire in 2032. In March 2018, Hospira filed a counterclaim for infringement of the patent that expired in 2019. In November 2018, the case was dismissed by mutual agreement of the parties. 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. In November 2018, we settled all of our claims against MicroLabs on terms not material to Pfizer. Separately, also in February 2017, we brought a patent-infringement action against Sun Pharmaceutical Industries Ltd. (Sun 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 Ltd. in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In November 2017, we brought an additional patent-infringement action against Sun Ltd. in the U.S. District Court for the District of Delaware asserting the infringement and validity of another patent challenged by Sun Ltd., which covers the active ingredient and expires in December 2025. In October 2018, we brought a third patent infringement action against Sun Ltd. in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patent covering the extended release formulation of tofacitinib, which expires in 2034. In March and April 2019, the actions against Sun Ltd. were dismissed by mutual agreement of the parties. 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 three patents: the patent covering the active ingredient expiring in December 2025, the patent covering an enantiomer of tofacitinib expiring in 2022, and the patent covering a polymorphic form of tofacitinib expiring in 2023, 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. In October 2017, we brought an additional patent-infringement action against Breckenridge in the U.S. District Court for the District of Delaware asserting the infringement and validity of four additional patents challenged by Breckenridge, three of which expire in December 2020 and one of which expires in December 2025. In March 2018, we brought another patent infringement action against Prinston in the U.S. District Court for the District of Delaware asserting the infringement and validity of an additional patent, which had been subsequently challenged by Prinston and which expires in December 2025. In May 2018, we settled all of our claims against Breckenridge on terms not material to Pfizer. In January 2019, we settled all of our claims against Prinston on terms not material to Pfizer. In December 2018, we brought a separate patent infringement action against Teva Pharmaceuticals USA, Inc. (Teva) in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patent covering extended release formulations of tofacitinib that was challenged by Teva in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 11 mg extended release tablets. In March 2019, we brought a separate patent infringement action against Ajanta Pharma Ltd. and Ajanta Pharma USA Inc. (collectively, Ajanta) in the U.S. District Court for the District of Delaware asserting the infringement and validity of two patents: the patent covering the active ingredient that expires in December 2025 and the patent covering a polymorphic form of tofacitinib that expires in 2023, each of which Ajanta challenged in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 5 mg tablets. Inlyta (axitinib) In April 2018, Apotex Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Inlyta. Apotex Inc. asserts the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030. In May 2018, we filed suit against Apotex Inc. in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the crystalline form patent for Inlyta. Kerydin (tavaborole) In September 2018, several generic companies notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Kerydin. The generic companies assert the invalidity and non-infringement of methods of use and formulation patents for tavaborole that expire in 2026 and 2027, including pediatric exclusivity. In October 2018, Anacor, our wholly-owned subsidiary , filed infringement lawsuits against each of the 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. Ibrance (palbociclib) In March 2019, several generic companies notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Ibrance. The generic companies assert the invalidity and non-infringement of two composition of matter patents and a method of use patent covering palbociclib, each of which expire in 2023. In April 2019, we brought patent infringement actions against each of the generic filers in various federal courts, asserting the validity and infringement of the patents challenged by the generic companies. Matters Involving Our Collaboration/Licensing Partners 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. In 2018 and early 2019, we settled all pending claims against the various generic challengers on terms not material to Pfizer, with the exception of our claims against Aurobindo, which remain pending in the U.S. District Court for the District of Delaware. 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, 2026, 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 2026 patent, and one generic company challenged all three patents. We and BMS have settled with certain of the generic companies on terms not material to Pfizer, and we and BMS may settle with other generic companies in the future. 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 were dismissed by the plaintiffs, leaving two patents at issue: the infliximab antibody patent and a patent relating to cell culture media. In January 2018, the antibody patent was declared invalid by the Court of Appeals for the Federal Circuit. In July 2018, the U.S. District Court for the District of Massachusetts granted defendants’ motion for summary judgment and ruled that the patent relating to cell culture media was not infringed. Janssen appealed the District Court’s decision to the U.S. 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 (American Optical), 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 June 30, 2019 , approximately 46,400 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 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 appealed to the U.S. Court of Appeals for the Third Circuit. In August 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court. 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’s orders dismissing their claims with prejudice to the U.S. Court of Appeals for the Third Circuit. In addition, the direct purchaser class plaintiffs appealed the order denying their motion to amend the judgment and for leave to amend their complaint to the U.S. Court of Appeals for the Third Circuit. In August 2017, the U.S. Court of Appeals for the Third Circuit reversed the District Court’s decisions and remanded the claims to the District Court. Also, in January 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that |
Segment, Geographic and Other R
Segment, Geographic and Other Revenue Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment, Geographic and Other Revenue Information | Segment, Geographic and Other Revenue Information A. Segment Information At the beginning of our 2019 fiscal year, we began to manage our commercial operations through a new global structure consisting of three distinct business segments: Pfizer Biopharmaceuticals Group (Biopharma), Upjohn and through July 31, 2019 , Pfizer’s Consumer Healthcare business (Consumer Healthcare). The Biopharma, Upjohn and Consumer Healthcare segments are each led by a single manager. Each operating segment has responsibility for its commercial activities. Upjohn and Consumer Healthcare are responsible for their own R&D activities while Biopharma receives its R&D services from GPD and WRDM. These services include IPR&D projects for new investigational products and additional indications for in-line products. Each business has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the three operating segments, among other factors, for performance evaluation and resource allocation. Biopharma and Upjohn are the only reportable segments. We have revised prior-period information (Revenues and Earnings, as defined by management) to conform to the current management structure. As our operations were not managed under the new structure until the beginning of fiscal 2019, certain costs and expenses could not be directly attributed to one of the new operating segments. As a result, our operating segment results for the second quarter and first six months of 2018 include allocations, which management believes are reasonable. Operating Segments Some additional information about our Biopharma and Upjohn business segments follows: Pfizer Biopharmaceuticals Group Biopharma is a science-based innovative medicines business that includes six business units – Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine. The new Hospital unit commercializes our global portfolio of sterile injectable and anti-infective medicines and includes Pfizer’s contract manufacturing operation, Pfizer CentreOne. At the beginning of our 2019 fiscal year, we also incorporated our biosimilar portfolio into our Oncology and Inflammation & Immunology business units and certain legacy established products into the Internal Medicine business unit. Each business unit is committed to delivering breakthroughs that change patients’ lives. Upjohn is a global, primarily off-patent branded and generic established medicines business, which includes 20 primarily off-patent solid oral dose legacy brands, as well as certain generic medicines. Select products include: - Prevnar 13/Prevenar 13 - Eliquis - Xeljanz - Enbrel (outside the U.S. and Canada) Chantix/Champix - Sutent - Xtandi Select products include: - Lyrica - Celebrex - Viagra - Certain generic medicines On July 29, 2019, which fell in the third fiscal quarter of 2019, we announced that we entered into a definitive agreement to combine Upjohn with Mylan, creating a new global pharmaceutical company. For additional information, see Note 1A . Pfizer’s Consumer Healthcare segment is an over-the-counter medicines business, which on July 31, 2019 was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. See Note 2 for additional information. Other Costs and Business Activities Certain pre-tax costs are not allocated to our operating segment results, such as costs associated with the following: • WRDM––the R&D and Medical expenses managed by our WRDM organization, which is generally responsible for research projects for our Biopharma portfolio until proof-of-concept is achieved and then for transitioning those projects to the GPD organization for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. The WRDM organization also has responsibility for certain science-based and other platform-services organizations, which provide end-to-end technical expertise and other services to the various R&D projects, as well as the Worldwide Medical and Safety group, which ensures that Pfizer provides all stakeholders––including patients, healthcare providers, pharmacists, payers and health authorities––with complete and up-to-date information on the risks and benefits associated with Pfizer products so that they can make appropriate decisions on how and when to use Pfizer’s medicines. • GPD––the costs associated with our GPD organization, which is generally responsible for clinical trials from WRDM in the Biopharma portfolio, including late stage portfolio spend. GPD also provides technical support and other services to Pfizer R&D projects. GPD is responsible for facilitating all regulatory submissions and interactions with regulatory agencies. • Other––the operating results of our Consumer Healthcare business, and costs associated with other commercial activities not managed as part of Biopharma or Upjohn, including all strategy, business development, portfolio management and valuation capabilities, which previously had been reported in various parts of the organization. • Corporate and Other Unallocated––the costs associated with platform functions (such as worldwide technology, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance, and worldwide procurement), patient advocacy activities and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments, as well as overhead expenses associated with our manufacturing (which include manufacturing variances associated with production) and commercial operations that are not directly assessed to an operating segment, as business unit (segment) management does not manage these costs. • 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 charges, legal charges or net gains and losses on investments in equity securities) 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 or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $156 billion as of June 30, 2019 and $159 billion as of December 31, 2018 . Selected Income Statement Information The following table provides selected income statement information by reportable segment: Three Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 9,595 $ 9,434 $ 6,093 $ 5,958 Upjohn 2,807 3,147 1,951 2,222 Total reportable segments 12,402 12,581 8,044 8,181 Other business activities — — (1,193 ) (1,119 ) Reconciling Items: Corporate and other unallocated 862 886 (1,399 ) (1,576 ) Purchase accounting adjustments — — (1,178 ) (1,134 ) Acquisition-related costs — — 176 (62 ) Certain significant items (b) — — (309 ) 237 $ 13,264 $ 13,466 $ 4,141 $ 4,527 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 18,779 $ 18,315 $ 11,981 $ 11,781 Upjohn 5,882 6,267 4,225 4,391 Total reportable segments 24,661 24,582 16,206 16,172 Other business activities — — (2,306 ) (2,307 ) Reconciling Items: Corporate and other unallocated 1,721 1,791 (2,676 ) (2,900 ) Purchase accounting adjustments — — (2,217 ) (2,355 ) Acquisition-related costs — — 148 (110 ) Certain significant items (b) — — (691 ) 154 $ 26,382 $ 26,373 $ 8,463 $ 8,654 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include d ividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018 , and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4. (b) 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 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million , (ii) charges for certain legal matters of $15 million , (iii) certain asset impairment charges of $10 million , (iv) charges for business and legal entity alignment of $141 million , (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million . For additional information, see Note 3 and Note 4. For Earnings in the second quarter of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million , (ii) a net credit for certain legal matters of $88 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $1 million , (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million , (ii) charges for certain legal matters of $9 million , (iii) certain asset impairment charges of $149 million , (iv) charges for business and legal entity alignment of $264 million , (v) net gains recognized during the period on investments in equity securities of $136 million , (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million . For additional information, see Note 3 and Note 4. For Earnings in the first six months of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million , (ii) net credits for certain legal matters of $107 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $4 million , (v) net gains recognized during the period on investments in equity securities of $375 million , (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. 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 The following table provides revenues by geographic area: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, % Change June 30, July 1, % Change U.S. $ 6,335 $ 6,225 2 $ 12,510 $ 12,500 — Developed Europe (a) 2,228 2,334 (5 ) 4,315 4,426 (3 ) Developed Rest of World (b) 1,639 1,694 (3 ) 3,174 3,155 1 Emerging Markets (c) 3,062 3,214 (5 ) 6,383 6,292 1 Revenues $ 13,264 $ 13,466 (2 ) $ 26,382 $ 26,373 — (a) Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion in the second quarter of 2019 and $1.9 billion in the second quarter of 2018 , and were $3.5 billion in the first six months of 2019 and $3.6 billion in the first six months of 2018 . (b) Developed Rest of World region includes the following markets: Japan, Canada, South Korea, Australia and New Zealand. (c) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Africa, Central Europe and Turkey. C. Other Revenue Information Significant Product Revenues The following table provides detailed revenue information: (MILLIONS OF DOLLARS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATIONS OR CLASS June 30, July 1, June 30, July 1, TOTAL REVENUES $ 13,264 $ 13,466 $ 26,382 $ 26,373 PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA) (a) $ 9,595 $ 9,434 $ 18,779 $ 18,315 Internal Medicine (b) $ 2,330 $ 2,276 $ 4,546 $ 4,347 Eliquis alliance revenues and direct sales Atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,085 889 2,096 1,654 Chantix/Champix An aid to smoking cessation treatment in adults 18 years of age or older 276 277 549 528 Premarin family Symptoms of menopause 193 210 361 401 BMP2 Development of bone and cartilage 79 80 145 153 Toviaz Overactive bladder 65 70 125 130 All other Internal Medicine Various 631 750 1,270 1,480 Oncology (c) $ 2,236 $ 1,888 $ 4,198 $ 3,648 Ibrance Advanced breast cancer 1,261 1,027 2,394 1,960 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 248 275 480 537 Xtandi alliance revenues Castration-resistant prostate cancer 201 171 369 330 Xalkori ALK-positive and ROS1-positive advanced NSCLC 133 137 255 290 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 97 77 177 138 Inlyta Advanced RCC 104 81 177 155 Retacrit (j) Anemia 51 18 82 36 All other Oncology Various 140 100 262 201 Hospital (d) $ 1,913 $ 2,077 $ 3,800 $ 4,103 Sulperazon Treatment of infections 165 150 342 319 Medrol (e) Steroid anti-inflammatory 120 123 240 258 Vfend Fungal infections 94 110 178 207 Zithromax (e) Bacterial infections 73 81 177 182 EpiPen Epinephrine injection used in treatment of life-threatening allergic reactions 80 95 146 148 Zyvox Bacterial infections 71 66 134 134 Fragmin Slows blood clotting 63 74 123 145 Zosyn/Tazocin Antibiotic 53 58 104 120 Pfizer CentreOne (f) Various 204 209 380 381 All other Anti-infectives Various 367 362 721 755 All other Hospital (d) Various 623 748 1,254 1,455 Vaccines $ 1,375 $ 1,400 $ 2,988 $ 2,863 Prevnar 13/Prevenar 13 Pneumococcal disease 1,179 1,250 2,665 2,631 FSME/IMMUN-TicoVac Tick-borne encephalitis disease 95 73 133 105 Nimenrix Meningococcal disease 58 30 107 49 All other Vaccines Various 43 47 82 78 Inflammation & Immunology (I&I) (g) $ 1,219 $ 1,222 $ 2,256 $ 2,235 Xeljanz RA, PsA, UC 613 463 1,036 788 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 420 551 871 1,057 Inflectra/Remsima (g), (j) Inflammatory diseases 153 158 291 303 Eucrisa Mild-to-moderate atopic dermatitis (eczema) 27 39 50 65 All other I&I Various 6 11 9 22 Rare Disease $ 521 $ 571 $ 991 $ 1,120 BeneFIX Hemophilia 121 141 247 288 Genotropin Replacement of human growth hormone 125 140 232 272 Refacto AF/Xyntha Hemophilia 108 141 214 271 Somavert Acromegaly 68 68 128 131 Vyndaqel ATTR-Cardiomyopathy and Polyneuropathy 63 38 104 72 All other Rare Disease Various 35 43 66 86 (MILLIONS OF DOLLARS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATIONS OR CLASS June 30, July 1, June 30, July 1, UPJOHN (b) , (h) $ 2,807 $ 3,147 $ 5,882 $ 6,267 Lyrica Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury 1,175 1,223 2,362 2,436 Lipitor Reduction of LDL cholesterol 407 521 1,029 1,032 Norvasc Hypertension 216 273 516 529 Celebrex Arthritis pain and inflammation, acute pain 174 161 347 306 Viagra Erectile dysfunction 114 185 259 372 Effexor Depression and certain anxiety disorders 86 79 163 150 Zoloft Depression and certain anxiety disorders 73 77 143 151 Xalatan/Xalacom Glaucoma and ocular hypertension 72 85 133 157 Revatio Pulmonary arterial hypertension 56 54 98 109 Xanax Anxiety disorders 52 56 98 111 All other Upjohn Various 382 433 735 914 CONSUMER HEALTHCARE BUSINESS (i) $ 862 $ 886 $ 1,721 $ 1,791 Total Alliance revenues Various $ 1,187 $ 987 $ 2,277 $ 1,842 Total Biosimilars (j) Various $ 217 $ 188 $ 396 $ 361 Total Sterile Injectable Pharmaceuticals (k) $ 1,218 $ 1,329 $ 2,455 $ 2,688 (a) The Pfizer Biopharmaceuticals Group encompasses Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology and Rare Disease. The new Hospital business unit commercializes our global portfolio of sterile injectable and anti-infective medicines, and also includes Pfizer CentreOne (f) . (b) We reclassified certain products from the LEP category, including Premarin family products, and certain other products from the legacy Peri-LOE category, including Pristiq, to the Internal Medicine category and reclassified Lyrica from the Internal Medicine category to the Upjohn business to conform 2018 product revenues to the current presentation. (c) We performed certain reclassifications in the All other Oncology category to conform 2018 product revenues to the current presentation. (d) Hospital is a new business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. We performed certain reclassifications, primarily from the legacy Sterile Injectables Pharmaceuticals (SIP) category (Sulperazon, Medrol, Fragmin, Tygacil, Zosyn/Tazocin and Precedex, among other products), the LEP category (Epipen and Zithromax), and the legacy Peri-LOE category (Vfend and Zyvox) to the Hospital category to conform 2018 product revenues to the current presentation. Hospital also includes Pfizer CentreOne (f) . All other Hospital primarily includes revenues from legacy SIP products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. (e) 2018 revenues for Medrol and Zithromax may not agree to previously disclosed revenues because revenues for those products were previously split between LEP and the legacy SIP categories. All revenues for these products are currently reported in the Hospital category. (f) 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 Inc. In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within legacy All Other LEP and legacy All Other SIP, are reported in emerging markets within Pfizer CentreOne. (g) We reclassified Inflectra/Remsima from the legacy Biosimilars category to the Inflammation & Immunology category to conform 2018 product revenues to the current presentation. (h) Pfizer’s Upjohn business encompasses primarily off-patent branded and generic established medicines that includes 20 of our primarily off-patent solid oral dose legacy brands including Lyrica, Lipitor, Norvasc, Celebrex and Viagra, as well as certain generic medicines. (i) Pfizer’s Consumer Healthcare business is an over-the-counter medicines business, which on July 31, 2019 was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. For additional information, see Note 2 . (j) Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima and Retacrit. (k) Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 in 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 26, 2019 and May 27, 2018 . 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 June 30, 2019 and July 1, 2018 . 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 results for the interim periods presented. 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 2018 Financial Report. At the beginning of our 2019 fiscal year, we began to manage our commercial operations through a new global structure consisting of three business segments––Pfizer Biopharmaceuticals Group (Biopharma), Upjohn and through July 31, 2019 , Consumer Healthcare. Biopharma and Upjohn are the only reportable segments. We have revised prior-period segment information to reflect the reorganization. For additional information, see Note 13 . 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. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2019, we adopted four new accounting standards. Leases ––On January 1, 2019, we adopted a new accounting standard for leases and changed our lease policies accordingly. Under the new standard, the most significant change is the requirement of balance sheet recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. We adopted the new accounting standard utilizing the modified retrospective method using a simplified transition approach, and, therefore, no adjustments were made to our prior period financial statements. We have elected the package of practical expedients for transition which are permitted in the new standard. Accordingly, we did not reassess whether (i) any expired or existing contracts are or contain leases under the new standard, (ii) classification of leases as operating leases or capital leases would be different under the new standard, or (iii) any initial direct costs would have met the definition of initial direct costs under the new standard. Additionally, we did not elect to use hindsight in determining the lease term for existing leases as of January 1, 2019. We recorded noncurrent ROU assets of $1.4 billion and current and noncurrent operating lease liabilities of $1.4 billion as of January 1, 2019. We also recorded the cumulative effect of adopting the standard as an adjustment to increase the opening balance of Retained earnings by $30 million on a pre-tax basis ( $20 million after-tax), relating to previously deferred sale-leaseback gains that can be recognized under the new rules. Adopting the standard related to leases impacted our prior period condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) As Previously Reported Balance at December 31, 2018 Effect of Change Higher/(Lower) Balance at January 1, 2019 Other current assets $ 2,461 $ (1 ) $ 2,460 Noncurrent deferred tax assets and other noncurrent tax assets 1,924 (11 ) 1,913 Other noncurrent assets 2,799 1,351 4,149 Other current liabilities 10,753 258 11,011 Other noncurrent liabilities 5,850 1,060 6,910 Retained earnings 89,554 20 89,574 Adoption of the standard related to leases did not have a material impact on our condensed consolidated statements of income or condensed consolidated statements of cash flows for the six months ended June 30, 2019 . For additional information, see Note 1D . Amortization Period for Certain Callable Debt Securities Held at a Premium ––We prospectively adopted the standard, which shortens the amortization period for certain callable debt securities held at a premium. The new guidance requires the premium to be amortized to the earliest call date. We do not have any investments with features subject to this standard and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity and Accounting for Certain Financial Instruments with Down Round Features ––We prospectively adopted the standard, which changes the accounting for warrants or convertible instruments that include a down round feature. We do not have any financial instruments with features subject to this standard and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. Accounting for Share-Based Payments to Nonemployees ––We prospectively adopted the standard, which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, the measurement of equity-classified nonemployee awards will be fixed at the grant date. We do not have any share-based awards issued to nonemployees and, therefore, there was no impact to our condensed consolidated financial statements from the adoption of this new standard. On January 1, 2018, we adopted eleven new accounting standards. For additional information, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 included in our 2018 Financial Report. C. Revenues and Trade Accounts Receivable Our accruals for Medicare rebates, Medicaid and related state program rebates, performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts totaled $5.6 billion as of June 30, 2019 and $5.4 billion as of December 31, 2018 . The following table provides information about the balance sheet classification of these accruals: (MILLIONS OF DOLLARS) June 30, December 31, 2018 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,226 $ 1,288 Other current liabilities : Accrued rebates 3,256 3,208 Other accruals 620 531 Other noncurrent liabilities 472 399 Total accrued rebates and other accruals $ 5,574 $ 5,426 D. Leases On January 1, 2019, we adopted a new accounting standard for leases. For further information, see Note 1B . We lease real estate, fleet, and equipment for use in our operations. Our leases generally have lease terms of 1 to 30 years, some of which include options to terminate or extend leases for up to 5 to 10 years or on a month-to-month basis. We include options that are reasonably certain to be exercised as part of the determination of lease terms. We may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options are not exercised. Residual value guarantees are generally not included within our operating leases with the exception of some fleet leases. In addition to base rent payments, the leases may require us to pay directly for taxes and other non-lease components, such as insurance, maintenance and other operating expenses, which may be dependent on usage or vary month-to-month. Variable lease payments amounted to $59 million for the three months ended June 30, 2019 and $118 million for the six months ended June 30, 2019 . We have elected the practical expedient in the new standard to not separate non-lease components from lease components in calculating the amounts of ROU assets and lease liabilities for all underlying asset classes. We determine if an arrangement is a lease at inception of the contract in accordance with guidance detailed in the new standard and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. For operating leases, the ROU assets and liabilities are presented in our condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) Balance Sheet Classification Balance at June 30, 2019 ROU assets Other noncurrent assets $ 1,273 Lease liabilities (short-term) Other current liabilities 263 Lease liabilities (long-term) Other noncurrent liabilities 1,026 Our total lease costs are as follows: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, 2019 June 30, 2019 Operating lease cost $ 100 $ 200 Variable lease cost 59 118 Sublease income (11 ) (21 ) Total lease cost $ 148 $ 297 Other supplemental information includes the following: (MILLIONS OF DOLLARS) Weighted-Average Remaining Contractual Lease Term (Years) as of June 30, 2019 Weighted-Average Discount Rate as of June 30, 2019 Six Months Ended June 30, 2019 Operating leases 7.1 3.7 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 156 ROU assets obtained in exchange for new operating lease liabilities $ 122 The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of June 30, 2019: (MILLIONS OF DOLLARS) Period Operating Lease Liabilities Next one year (a) $ 302 1-2 years 254 2-3 years 216 3-4 years 171 4-5 years 122 Thereafter 419 Total undiscounted lease payments 1,483 Less: Imputed interest 195 Present Value of Minimum Lease Payments 1,288 Less: Current portion 263 Noncurrent portion $ 1,026 (a) Reflects lease payments due within 12 months subsequent to the balance sheet date. In April 2018, we entered an agreement to lease space in an office building in New York City. We expect to take control of the property in 2021 and relocate our global headquarters to this new office building in 2022. Our future minimum rental commitment under this 20 -year lease is approximately $1.7 billion . Prior to our adoption of the new lease standard, rental expense, net of sublease income, was $301 million in 2018, $314 million in 2017 and $292 million in 2016. As of December 31, 2018, the future minimum rental commitments under non-cancelable operating leases follow: (MILLIONS OF DOLLARS) 2019 2020 2021 2022 2023 After 2023 Lease commitments $ 300 $ 252 $ 210 $ 267 $ 248 $ 2,040 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of Adoption of Accounting Standard Updates | Adopting the standard related to leases impacted our prior period condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) As Previously Reported Balance at December 31, 2018 Effect of Change Higher/(Lower) Balance at January 1, 2019 Other current assets $ 2,461 $ (1 ) $ 2,460 Noncurrent deferred tax assets and other noncurrent tax assets 1,924 (11 ) 1,913 Other noncurrent assets 2,799 1,351 4,149 Other current liabilities 10,753 258 11,011 Other noncurrent liabilities 5,850 1,060 6,910 Retained earnings 89,554 20 89,574 |
Schedule of Balance Sheet Classification of Accruals | The following table provides information about the balance sheet classification of these accruals: (MILLIONS OF DOLLARS) June 30, December 31, 2018 Reserve against Trade accounts receivable, less allowance for doubtful accounts $ 1,226 $ 1,288 Other current liabilities : Accrued rebates 3,256 3,208 Other accruals 620 531 Other noncurrent liabilities 472 399 Total accrued rebates and other accruals $ 5,574 $ 5,426 |
ROU Assets and Liabilities Presented in Condensed Consolidated Balance Sheets | For operating leases, the ROU assets and liabilities are presented in our condensed consolidated balance sheet as follows: (MILLIONS OF DOLLARS) Balance Sheet Classification Balance at June 30, 2019 ROU assets Other noncurrent assets $ 1,273 Lease liabilities (short-term) Other current liabilities 263 Lease liabilities (long-term) Other noncurrent liabilities 1,026 |
Total Lease Costs and Other Supplemental Information | Our total lease costs are as follows: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, 2019 June 30, 2019 Operating lease cost $ 100 $ 200 Variable lease cost 59 118 Sublease income (11 ) (21 ) Total lease cost $ 148 $ 297 Other supplemental information includes the following: (MILLIONS OF DOLLARS) Weighted-Average Remaining Contractual Lease Term (Years) as of June 30, 2019 Weighted-Average Discount Rate as of June 30, 2019 Six Months Ended June 30, 2019 Operating leases 7.1 3.7 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 156 ROU assets obtained in exchange for new operating lease liabilities $ 122 |
Schedule of Future Minimum Rental Payments for Operating Leases | The table below reconciles the undiscounted cash flows for the first five years and total of the remaining years to the operating lease liabilities recorded in the condensed consolidated balance sheet as of June 30, 2019: (MILLIONS OF DOLLARS) Period Operating Lease Liabilities Next one year (a) $ 302 1-2 years 254 2-3 years 216 3-4 years 171 4-5 years 122 Thereafter 419 Total undiscounted lease payments 1,483 Less: Imputed interest 195 Present Value of Minimum Lease Payments 1,288 Less: Current portion 263 Noncurrent portion $ 1,026 (a) |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, the future minimum rental commitments under non-cancelable operating leases follow: (MILLIONS OF DOLLARS) 2019 2020 2021 2022 2023 After 2023 Lease commitments $ 300 $ 252 $ 210 $ 267 $ 248 $ 2,040 |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale Assets and Liabilities Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Amounts Associated with the Consumer Healthcare Business | The amounts associated with the Consumer Healthcare business, as well as other assets classified as held for sale consisted of the following: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Assets Held for Sale Cash and cash equivalents $ 53 $ 32 Trade accounts receivable, less allowance for doubtful accounts 555 532 Inventories 580 538 Other current assets 56 56 PP&E 714 675 Identifiable intangible assets, less accumulated amortization 5,753 5,763 Goodwill 1,965 1,972 Noncurrent deferred tax assets and other noncurrent tax assets 55 54 Other noncurrent assets 91 57 Total Consumer Healthcare assets held for sale 9,821 9,678 Other assets held for sale (a) 56 46 Assets held for sale $ 9,877 $ 9,725 Liabilities Held for Sale Trade accounts payable $ 348 $ 406 Income taxes payable 63 39 Accrued compensation and related items 79 93 Other current liabilities 334 353 Pension benefit obligations, net 41 39 Postretirement benefit obligations, net 34 33 Noncurrent deferred tax liabilities 1,036 870 Other noncurrent liabilities 74 56 Total Consumer Healthcare liabilities held for sale $ 2,009 $ 1,890 (a) Other assets held for sale consist of PP&E. |
Restructuring Charges and Oth_2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, July 1, June 30, July 1, Restructuring charges/(credits): Employee terminations $ (166 ) $ (21 ) $ (167 ) $ (29 ) Asset impairments (9 ) (6 ) — (4 ) Exit costs 31 3 34 — Restructuring credits (a) (144 ) (24 ) (134 ) (33 ) Integration costs (b) 29 68 64 120 Restructuring charges and certain acquisition-related costs (115 ) 44 (69 ) 87 Net periodic benefit costs recorded in Other (income)/deductions––net 4 29 10 61 Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows (c) : Cost of sales 7 13 15 30 Selling, informational and administrative expenses 1 — 2 — Research and development expenses 2 — 5 — Total additional depreciation––asset restructuring 10 13 23 31 Implementation costs recorded in our condensed consolidated statements of income as follows (d) : Cost of sales 17 20 31 36 Selling, informational and administrative expenses 16 16 25 34 Research and development expenses 9 7 13 13 Total implementation costs 42 44 69 82 Total costs associated with acquisitions and cost-reduction/productivity initiatives $ (59 ) $ 131 $ 32 $ 262 (a) In the second quarter and first six months of 2019 , restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B ). In the three and six months ended July 1, 2018 , restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. The restructuring activities for 2019 are associated with the following: • For the second quarter of 2019 , Biopharma ( $62 million credit ); Upjohn ( $9 million credit ); and Other ( $74 million credit). • For the first six months of 2019 , Biopharma ( $48 million credit ); Upjohn ( $22 million credit ); and Other ( $63 million credit). The restructuring activities for 2018 are associated with the following: • For the second quarter of 2018, total reportable segments ( $10 million credit); and Other ( $13 million credit). • For the first six months of 2018, total reportable segments ( $24 million credit); and Other ( $9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments. (b) Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. In the second quarter and first six months of 2019 and 2018, integration costs were primarily related to our acquisition of Hospira. (c) Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. (d) Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Schedule of 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, 2018 (a) $ 1,203 $ — $ 49 $ 1,252 Provision/(credit) (b) (167 ) — 34 (134 ) Utilization and other (c) (303 ) — (18 ) (321 ) Balance, June 30, 2019 (d) $ 733 $ — $ 64 $ 797 (a) Included in Other current liabilities ( $823 million ) and Other noncurrent liabilities ( $428 million ). (b) Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information. (c) Includes adjustments for foreign currency translation. (d) Included in Other current liabilities ( $593 million ) and Other noncurrent liabilities ( $204 million ). |
Other (Income)_Deductions - N_2
Other (Income)/Deductions - Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, July 1, June 30, July 1, Interest income (a) $ (59 ) $ (80 ) (125 ) (157 ) Interest expense (a) 389 326 750 635 Net interest expense 330 245 625 478 Royalty-related income (b) (231 ) (121 ) (320 ) (217 ) Net gains on asset disposals — (15 ) (1 ) (22 ) Net gains recognized during the period on investments in equity securities (c) (36 ) (257 ) (147 ) (375 ) Net realized losses on sales of investments in debt securities — 8 — 12 Income from collaborations, out-licensing arrangements and sales of compound/product rights (d) (22 ) (174 ) (104 ) (316 ) Net periodic benefit credits other than service costs (e) (51 ) (84 ) (91 ) (166 ) Certain legal matters, net (f) 15 (88 ) 19 (107 ) Certain asset impairments (g) 10 40 160 40 Business and legal entity alignment costs (h) 137 1 256 4 Net losses on early retirement of debt (i) — — 138 3 Other, net (j) (27 ) (106 ) (318 ) (64 ) Other (income)/deductions––net $ 126 $ (551 ) $ 218 $ (728 ) (a) Interest income decreased in the second quarter and first six months of 2019 , primarily driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2019 , mainly as a result of higher short-term interest rates, as well as the retirement of lower-coupon debt and the issuance of new debt with a higher coupon than the debt outstanding for the comparative prior year periods. (b) The increase in royalty-related income for the second quarter and first six months of 2019 is primarily due to a one-time favorable resolution in the second quarter of 2019 of a legal dispute for $82 million . (c) The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . (d) Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. In the first six months of 2019 , mainly includes $68 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® (fluticasone propionate and salmeterol inhalation powder). In the second quarter of 2018 , primarily included, among other things, $88 million in milestone income from multiple licensees and an upfront payment to us of $75 million for the sale of an α-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid (AMPA) receptor potentiator for cognitive impairment associated with schizophrenia (CIAS) to Biogen Inc. In the first six months of 2018, mainly includes, among other things, all of the factors discussed above for the second quarter of 2018, as well as a $75 million milestone payment received from Shire related to their first dosing of a patient in a Phase 3 clinical trial of a compound out-licensed by Pfizer to Shire for the treatment of ulcerative colitis, and a $40 million milestone payment from Merck in conjunction with the approval of ertugliflozin in the EU. (e) For additional information, see Note 10 . (f) In the second quarter and first six months of 2018, primarily represented the reversal of a legal accrual where a loss was no longer deemed probable. (g) The second quarter and first six months of 2019 include an intangible asset impairment charge of $10 million and the second quarter and first six months of 2018 included an intangible asset impairment charge of $31 million , which are all related to a finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, associated with Biopharma and reflect , among other things, updated commercial forecasts. The first six months of 2019 also includes intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, which relates to a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases; and (ii) $40 million related to a Biopharma developed technology right, acquired in connection with our acquisition of King, for government defense products. The WRDM IPR&D intangible asset impairment charge was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development. The intangible asset impairment charge related to the Biopharma developed technology right reflects, among other things, updated commercial forecasts including manufacturing cost assumptions. In addition, the first six months of 2019 , includes other asset impairments of $20 million . (h) In the second quarter and first six months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. In the second quarter and first six months of 2018, represents expenses for changes to our infrastructure to align our commercial operations that existed through December 31, 2018, 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. (i) In the first six months of 2019 , represents net losses due to the early retirement of debt in the first quarter of 2019, inclusive of the related termination of cross-currency swaps. (j) The second quarter of 2019 includes, among other things, charges of $81 million , reflecting the change in the fair value of contingent consideration, dividend income of $76 million from our investment in ViiV and $25 million of income from insurance recoveries related to Hurricane Maria. The first six months of 2019 includes, among other things, dividend income of $140 million from our investment in ViiV and $50 million of income from insurance recoveries related to Hurricane Maria. The second quarter of 2018 included, among other things, dividend income of $76 million from our investment in ViiV, and charges of $23 million , reflecting the change in the fair value of contingent consideration. The first six months of 2018 included, among other things, dividend income of $135 million from our investment in ViiV, and charges of $135 million reflecting the change in the fair value of contingent consideration. The second quarter and first six months of 2018 also included a non-cash $50 million pre-tax gain on the contribution of Pfizer’s allogeneic CAR T development program assets obtained from Cellectis S.A. and Les Laboratoires Servier SAS in connection with our contribution agreement entered into with Allogene, and a non-cash $17 million gain on the cash settlement of a liability that we incurred in April 2018 upon the EU approval of Mylotarg. The following table provides additional information about the intangible assets that were impaired during 2019 in Other (income)/deductions: Fair Value (a) Six Months Ended June 30, 2019 (MILLIONS OF DOLLARS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets –– IPR&D (b) $ — $ — $ — $ — $ 90 Intangible assets––Developed technology rights (b) 13 — — 13 50 Total $ 13 $ — $ — $ 13 $ 140 |
Schedule of Additional Information About Intangible Assets Impaired | The following table provides additional information about the intangible assets that were impaired during 2019 in Other (income)/deductions: Fair Value (a) Six Months Ended June 30, 2019 (MILLIONS OF DOLLARS) Amount Level 1 Level 2 Level 3 Impairment Intangible assets –– IPR&D (b) $ — $ — $ — $ — $ 90 Intangible assets––Developed technology rights (b) 13 — — 13 50 Total $ 13 $ — $ — $ 13 $ 140 (a) The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. (b) Reflects intangible assets written down to fair value in the first six months of 2019 . Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters (Tables)
Tax Matters (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 loss : Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Foreign currency translation adjustments, net (a) $ (17 ) $ 101 $ 10 $ 67 Unrealized holding gains/(losses) on derivative financial instruments, net (53 ) 8 6 4 Reclassification adjustments for (gains)/losses included in net income (4 ) 72 (59 ) 65 Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — 1 (57 ) 79 (53 ) 70 Unrealized holding gains/(losses) on available-for-sale securities, net (1 ) (48 ) 4 (28 ) Reclassification adjustments for (gains)/losses included in net income 3 20 5 (2 ) Reclassification adjustments for tax on unrealized gains from AOCI to Retained earnings (c) — — — (45 ) 2 (29 ) 9 (76 ) Benefit plans: actuarial gains/(losses), net (1 ) (13 ) (1 ) 25 Reclassification adjustments related to amortization 15 14 18 28 Reclassification adjustments related to settlements, net — 7 1 15 Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — 637 Other 8 27 3 6 23 34 21 712 Benefit plans: prior service costs and other, net — — — — Reclassification adjustments related to amortization of prior service costs and other, net (11 ) (11 ) (22 ) (22 ) Reclassification adjustments related to curtailments of prior service costs and other, net — 4 — (3 ) Reclassification adjustments of certain tax effects from AOCI to Retained earnings (b) — — — (144 ) Other — (6 ) — — (11 ) (13 ) (22 ) (168 ) Tax provision/(benefit) on other comprehensive loss $ (59 ) $ 173 $ (34 ) $ 605 (a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. (b) For additional information on the adoption of a new accounting standard related to reclassification of certain tax effects from AOCI, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. (c) For additional information on the adoption of a new accounting standard related to financial assets and liabilities, see Notes to Consolidated Financial Statements–– Note 1B . Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 $ (6,075 ) $ 167 $ (68 ) $ (6,027 ) $ 728 $ (11,275 ) Other comprehensive income/(loss) (a) (167 ) (200 ) 61 116 (70 ) (260 ) Balance, June 30, 2019 $ (6,242 ) $ (33 ) $ (8 ) $ (5,911 ) $ 658 $ (11,535 ) (a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $2 million loss for the first six months of 2019 . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Schedule of Financial Assets and Liabilities Measured At Fair Value On a Recurring Basis | The following table presents the financial assets and liabilities measured at fair value using a market approach on a recurring basis by balance sheet categories and fair value hierarchy level as defined in Notes to Consolidated Financial Statements–– Note 1E. Basis of Presentation and Significant Accounting Policies: Fair Value in Pfizer’s 2018 Financial Report: June 30, 2019 December 31, 2018 (MILLIONS OF DOLLARS) Total Level 1 Level 2 Total Level 1 Level 2 Financial assets measured at fair value on a recurring basis: Short-term investments Classified as equity securities: Money market funds $ 4,727 $ — $ 4,727 $ 1,571 $ — $ 1,571 Equity (a) 26 15 12 29 17 11 4,753 15 4,739 1,600 17 1,583 Classified as available-for-sale debt securities: Government and agency—non-U.S. 3,014 — 3,014 9,609 — 9,609 Corporate and other 2,013 — 2,013 5,482 — 5,482 5,027 — 5,027 15,091 — 15,091 Total short-term investments 9,780 15 9,766 16,691 17 16,674 Other current assets Derivative assets: Interest rate contracts 79 — 79 97 — 97 Foreign exchange contracts 334 — 334 477 — 477 Total other current assets 412 — 412 574 — 574 Long-term investments Classified as equity securities: Equity (a) 1,425 1,400 25 1,223 1,193 30 Classified as trading securities: Equity funds 53 53 — 50 50 — 1,477 1,452 25 1,273 1,243 30 Classified as available-for-sale debt securities: Government and agency—non-U.S. 45 — 45 94 — 94 Corporate and other 385 — 385 397 — 397 430 — 430 491 — 491 Total long-term investments 1,907 1,453 454 1,764 1,243 521 Other noncurrent assets Derivative assets: Interest rate contracts 453 — 453 335 — 335 Foreign exchange contracts 249 — 249 232 — 232 Total other noncurrent assets 702 — 702 566 — 566 Total assets $ 12,801 $ 1,467 $ 11,334 $ 19,595 $ 1,260 $ 18,335 Financial liabilities measured at fair value on a recurring basis: Other current liabilities Derivative liabilities: Interest rate contracts $ 1 $ — $ 1 $ 5 $ — $ 5 Foreign exchange contracts 109 — 109 78 — 78 Total other current liabilities 110 — 110 82 — 82 Other noncurrent liabilities Derivative liabilities: Interest rate contracts — — — 378 — 378 Foreign exchange contracts 467 — 467 564 — 564 Total other noncurrent liabilities 467 — 467 942 — 942 Total liabilities $ 577 $ — $ 577 $ 1,024 $ — $ 1,024 (a) As of June 30, 2019 , short-term equity securities of $11 million and long-term equity securities of $24 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. As of December 31, 2018 , short-term equity securities of $11 million and long-term equity securities of $29 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. |
Schedule of Financial Liabilities Not Measured At Fair Value On a Recurring Basis | The following table presents the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (MILLIONS OF DOLLARS) Total Level 2 Total Level 2 Financial Liabilities Long-term debt, excluding the current portion $ 36,168 $ 40,301 $ 40,301 $ 32,909 $ 35,260 $ 35,260 |
Investments by Classification Type | The following table represents our investments by classification type: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Short-term investments Equity securities $ 4,753 $ 1,600 Available-for-sale debt securities 5,027 15,091 Held-to-maturity debt securities 1,347 1,003 Total Short-term investments $ 11,128 $ 17,694 Long-term investments Equity securities $ 1,425 $ 1,223 Trading equity funds securities 53 50 Available-for-sale debt securities 430 491 Held-to-maturity debt securities 47 59 Private equity investments at cost, as adjusted, or equity method 951 944 Total Long-term investments $ 2,905 $ 2,767 Held-to-maturity cash equivalents $ 163 $ 199 |
Schedule of Held-to-maturity Securities | At June 30, 2019, the investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt and equity securities at June 30, 2019 and December 31, 2018 is as follows, including, as of June 30, 2019, the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: June 30, 2019 December 31, 2018 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 3,056 $ 9 $ (7 ) $ 3,059 $ 3,014 $ 45 $ — $ 3,059 $ 9,754 $ 7 $ (58 ) $ 9,703 Corporate and other (a) 2,409 1 (12 ) 2,398 2,013 382 3 2,398 5,905 — (27 ) 5,878 Held-to-maturity debt securities Time deposits and other 693 — — 693 646 10 37 693 668 — — 668 Government and agency –– non-U.S. 865 — — 865 864 — — 865 592 — — 592 Total debt securities $ 7,023 $ 10 $ (19 ) $ 7,014 $ 6,537 $ 437 $ 40 $ 7,014 $ 16,920 $ 8 $ (85 ) $ 16,842 (a) Primarily issued by a diverse group of corporations. |
Schedule of Available-for-sale Securities | At June 30, 2019, the investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt and equity securities at June 30, 2019 and December 31, 2018 is as follows, including, as of June 30, 2019, the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: June 30, 2019 December 31, 2018 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 3,056 $ 9 $ (7 ) $ 3,059 $ 3,014 $ 45 $ — $ 3,059 $ 9,754 $ 7 $ (58 ) $ 9,703 Corporate and other (a) 2,409 1 (12 ) 2,398 2,013 382 3 2,398 5,905 — (27 ) 5,878 Held-to-maturity debt securities Time deposits and other 693 — — 693 646 10 37 693 668 — — 668 Government and agency –– non-U.S. 865 — — 865 864 — — 865 592 — — 592 Total debt securities $ 7,023 $ 10 $ (19 ) $ 7,014 $ 6,537 $ 437 $ 40 $ 7,014 $ 16,920 $ 8 $ (85 ) $ 16,842 (a) Primarily issued by a diverse group of corporations. |
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | At June 30, 2019, the investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt and equity securities at June 30, 2019 and December 31, 2018 is as follows, including, as of June 30, 2019, the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities: June 30, 2019 December 31, 2018 Gross Unrealized Maturities (in Years) Gross Unrealized (MILLIONS OF DOLLARS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 Over 5 Total Amortized Cost Gains Losses Fair Value Available-for-sale debt securities Government and agency –– non-U.S. $ 3,056 $ 9 $ (7 ) $ 3,059 $ 3,014 $ 45 $ — $ 3,059 $ 9,754 $ 7 $ (58 ) $ 9,703 Corporate and other (a) 2,409 1 (12 ) 2,398 2,013 382 3 2,398 5,905 — (27 ) 5,878 Held-to-maturity debt securities Time deposits and other 693 — — 693 646 10 37 693 668 — — 668 Government and agency –– non-U.S. 865 — — 865 864 — — 865 592 — — 592 Total debt securities $ 7,023 $ 10 $ (19 ) $ 7,014 $ 6,537 $ 437 $ 40 $ 7,014 $ 16,920 $ 8 $ (85 ) $ 16,842 (a) Primarily issued by a diverse group of corporations. |
Schedule of Gains and Losses on Investment Securities | The following table presents the net unrealized (gains) and losses for the period that relate to equity securities still held at the reporting date, calculated as follows: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Net gains recognized during the period on investments in equity securities (a) $ (36 ) $ (257 ) $ (147 ) $ (375 ) Less: Net gains recognized during the period on equity securities sold during the period (6 ) (27 ) (10 ) (46 ) Net unrealized gains during the reporting period on equity securities still held at the reporting date $ (31 ) $ (230 ) $ (137 ) $ (328 ) (a) The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . |
Schedule of Short-term Borrowings | Short-term borrowings include: (MILLIONS OF DOLLARS) June 30, December 31, Commercial paper $ 6,705 $ 3,100 Current portion of long-term debt, principal amount 2,139 4,781 Other short-term borrowings, principal amount (a) 1,691 966 Total short-term borrowings, principal amount 10,535 8,847 Net fair value adjustments related to hedging and purchase accounting — (5 ) Net unamortized discounts, premiums and debt issuance costs (29 ) (11 ) Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 10,507 $ 8,831 (a) Other short-term borrowings primarily include cash collateral. For additional information, see Note 7E |
Schedule of Principal Amounts of Senior Unsecured Long-Term Debt and Adjustments | The following table provides the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: (MILLIONS OF DOLLARS) June 30, December 31, Total long-term debt, principal amount $ 35,082 $ 32,558 Net fair value adjustments related to hedging and purchase accounting 1,264 479 Net unamortized discounts, premiums and debt issuance costs (185 ) (136 ) Other long-term debt 6 7 Total long-term debt, carried at historical proceeds, as adjusted $ 36,168 $ 32,909 Current portion of long-term debt, carried at historical proceeds, as adjusted $ 2,139 $ 4,776 In the first quarter of 2019, we issued the following senior unsecured notes: Principal (MILLIONS OF DOLLARS) Maturity Date As of June 30, 2019 2.800% notes (a) March 11, 2022 $ 500 2.950% notes (a) March 15, 2024 750 3.450% notes (a) March 15, 2029 1,750 3.900% notes (a) March 15, 2039 750 4.000% notes (a) March 15, 2049 1,250 Total long-term debt issued in the first quarter of 2019 (b) $ 5,000 (a) Fixed rate notes may be redeemed by us at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. (b) The weighted-average effective interest rate for the notes at issuance was 3.57% . |
Schedule of Derivative Instruments | The following table provides the fair value of the derivative financial instruments and the related notional amounts presented between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 18,012 $ 483 $ 519 $ 22,984 $ 654 $ 586 Interest rate contracts 8,812 531 1 11,145 432 383 1,015 520 1,085 968 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,615 99 58 $ 15,154 55 55 Total $ 1,114 $ 577 $ 1,140 $ 1,024 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $6.7 billion as of June 30, 2019 and $5.8 billion as of December 31, 2018. |
Schedule of Derivative Assets | The following table provides the fair value of the derivative financial instruments and the related notional amounts presented between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 18,012 $ 483 $ 519 $ 22,984 $ 654 $ 586 Interest rate contracts 8,812 531 1 11,145 432 383 1,015 520 1,085 968 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,615 99 58 $ 15,154 55 55 Total $ 1,114 $ 577 $ 1,140 $ 1,024 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $6.7 billion as of June 30, 2019 and $5.8 billion as of December 31, 2018. |
Schedule of Derivative Liabilities | The following table provides the fair value of the derivative financial instruments and the related notional amounts presented between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments: (MILLIONS OF DOLLARS) June 30, 2019 December 31, 2018 Fair Value Fair Value Notional Asset Liability Notional Asset Liability Derivatives designated as hedging instruments: Foreign exchange contracts (a) $ 18,012 $ 483 $ 519 $ 22,984 $ 654 $ 586 Interest rate contracts 8,812 531 1 11,145 432 383 1,015 520 1,085 968 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 16,615 99 58 $ 15,154 55 55 Total $ 1,114 $ 577 $ 1,140 $ 1,024 (a) The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $6.7 billion as of June 30, 2019 and $5.8 billion as of December 31, 2018. |
Information about Gains/(Losses) Incurred to Hedge or Offset Operational Foreign Exchange or Interest Rate Risk | The following tables provide information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a), (b) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, June 30, July 1, Three Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ (204 ) $ 107 $ 48 $ (330 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 28 20 32 20 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 483 (121 ) — — — — Hedged item (483 ) 121 — — — — Foreign exchange contracts — 12 — — — — Hedged item — (12 ) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (48 ) 153 — — The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness — — 52 25 31 21 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (d) — — (16 ) 85 — — Foreign currency long-term debt (d) — — (27 ) 186 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (4 ) 61 — — — — All other net — — — 1 — 1 $ (4 ) $ 62 $ (216 ) $ 577 $ 111 $ (289 ) Amount of (a) Amount of Gains/(Losses) (a), (b) Amount of Gains/(Losses) (a), (b) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, June 30, July 1, Six Months Ended Derivative Financial Instruments in Cash Flow Hedge Relationships: Foreign exchange contracts (c) $ — $ — $ 6 $ (36 ) $ 257 $ (402 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 84 48 86 48 Derivative Financial Instruments in Fair Value Hedge Relationships: Interest rate contracts 813 (520 ) — — — — Hedged item (813 ) 520 — — — — Foreign exchange contracts — 4 — — — — Hedged item — (4 ) — — — — Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign exchange contracts — — (25 ) 148 — — The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness — — 93 27 55 26 Non-Derivative Financial Instruments in Net Investment Hedge Relationships: Foreign currency short-term borrowings (d) — — 19 43 — — Foreign currency long-term debt (d) — — 11 94 — — Derivative Financial Instruments Not Designated as Hedges: Foreign exchange contracts (124 ) 6 — — — — All other net — — 1 1 — 1 $ (124 ) $ 6 $ 188 $ 325 $ 398 $ (328 ) (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) For derivative financial instruments in cash flow hedge relationships, the gains and losses are included in Other comprehensive income–– Unrealized holding gains/(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––Foreign currency translation adjustments, net. (c) Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $155 million within the next 12 months into Cost of sales. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. (d) Short-term borrowings include foreign currency short-term borrowings with carrying values of $1.1 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. Long-term debt includes foreign currency long-term borrowings with carrying values of $2.0 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. |
Schedule of Amounts Recorded In Balance Sheet Related to Cumulative Adjustments for Fair Value Hedges | The following table provides the total amount of each income and expense line in which the results of fair value or cash flow hedges are recorded: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30 July 1, Cost of sales $ 2,576 $ 2,916 $ 5,009 $ 5,479 Other (income)/deductions—net 126 (551 ) 218 (728 ) |
Schedule of Amounts Recorded In Balance Sheet Related to Cumulative Adjustments for Fair Value Hedges | The following table provides the total amount of each income and expense line in which the results of fair value or cash flow hedges are recorded: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30 July 1, Cost of sales $ 2,576 $ 2,916 $ 5,009 $ 5,479 Other (income)/deductions—net 126 (551 ) 218 (728 ) The following table provides the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges: June 30, 2019 December 31, 2018 Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount (MILLIONS OF DOLLARS) Carrying Amount of Actively Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Actively Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Long-term investments $ 45 $ (1 ) $ — $ 45 $ (1 ) $ — Short-term borrowings, including current portion of long-term debt — — — 1,499 (5 ) — Long-term debt 9,321 452 435 9,952 (45 ) 129 (a) Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories, Current | The following table provides the components of Inventories : (MILLIONS OF DOLLARS) June 30, December 31, Finished goods $ 2,494 $ 2,262 Work-in-process 5,249 4,701 Raw materials and supplies 490 546 Inventories (a) $ 8,233 $ 7,508 Noncurrent inventories not included above (b) $ 646 $ 618 (a) The change from December 31, 2018 reflects increases for certain products to meet targeted levels in the normal course of business, including inventory build for supply recovery and market demand, partially offset by a decrease due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Schedule of Components of Inventories, Noncurrent | The following table provides the components of Inventories : (MILLIONS OF DOLLARS) June 30, December 31, Finished goods $ 2,494 $ 2,262 Work-in-process 5,249 4,701 Raw materials and supplies 490 546 Inventories (a) $ 8,233 $ 7,508 Noncurrent inventories not included above (b) $ 646 $ 618 (a) The change from December 31, 2018 reflects increases for certain products to meet targeted levels in the normal course of business, including inventory build for supply recovery and market demand, partially offset by a decrease due to foreign exchange. (b) Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Asset_2
Identifiable Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table provides the components of Identifiable intangible assets : June 30, 2019 December 31, 2018 (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 $ 89,540 $ (60,949 ) $ 28,590 $ 89,430 $ (58,895 ) $ 30,535 Brands 923 (725 ) 198 923 (708 ) 215 Licensing agreements and other 1,440 (1,159 ) 281 1,436 (1,140 ) 296 91,903 (62,833 ) 29,070 91,788 (60,743 ) 31,045 Indefinite-lived intangible assets Brands and other 1,994 1,994 1,994 1,994 IPR&D 1,961 1,961 2,171 2,171 3,954 3,954 4,165 4,165 Identifiable intangible assets (a) $ 95,857 $ (62,833 ) $ 33,024 $ 95,954 $ (60,743 ) $ 35,211 (a) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization and intangible asset impairment charges, partially offset by additions for the period. See Note 4 for additional information on intangible asset impairments. |
Schedule of Indefinite Lived Intangible Assets | The following table provides the components of Identifiable intangible assets : June 30, 2019 December 31, 2018 (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 $ 89,540 $ (60,949 ) $ 28,590 $ 89,430 $ (58,895 ) $ 30,535 Brands 923 (725 ) 198 923 (708 ) 215 Licensing agreements and other 1,440 (1,159 ) 281 1,436 (1,140 ) 296 91,903 (62,833 ) 29,070 91,788 (60,743 ) 31,045 Indefinite-lived intangible assets Brands and other 1,994 1,994 1,994 1,994 IPR&D 1,961 1,961 2,171 2,171 3,954 3,954 4,165 4,165 Identifiable intangible assets (a) $ 95,857 $ (62,833 ) $ 33,024 $ 95,954 $ (60,743 ) $ 35,211 (a) The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization and intangible asset impairment charges, partially offset by additions for the period. See Note 4 for additional information on intangible asset impairments. |
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: June 30, 2019 Biopharma Upjohn WRDM Developed technology rights 99 % 1 % — Brands, finite-lived 100 % — — Brands, indefinite-lived 42 % 58 % — IPR&D 86 % — 14 % |
Schedule of Goodwill | The following table provides the components of and changes in the carrying amount of Goodwill : (MILLIONS OF DOLLARS) Biopharma Upjohn Total Balance, December 31, 2018 $ 42,927 $ 10,484 $ 53,411 Other (a) (47 ) (12 ) (59 ) Balance, June 30, 2019 $ 42,880 $ 10,472 $ 53,352 (a) Primarily reflects the impact of foreign exchange. |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following tables provide the components of net periodic benefit cost/(credit): Three Months Ended Pension Plans U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Net periodic benefit cost/(credit): Service cost $ — $ — $ — $ — $ 31 $ 34 $ 9 $ 10 Interest cost 157 150 12 14 54 55 19 18 Expected return on plan assets (223 ) (261 ) — — (80 ) (93 ) (8 ) (9 ) Amortization of: Actuarial losses 37 30 2 3 20 26 1 2 Prior service credits (1 ) — — — (1 ) (1 ) (45 ) (45 ) Curtailments — 7 — — — — — (7 ) Settlements 2 25 — 5 — — — — Special termination benefits 1 — 3 — — — 1 — $ (27 ) $ (49 ) $ 17 $ 21 $ 25 $ 21 $ (23 ) $ (32 ) Six Months Ended Pension Plans U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans (MILLIONS OF DOLLARS) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Net periodic benefit cost/(credit): Service cost $ — $ — $ — $ — $ 63 $ 71 $ 19 $ 20 Interest cost 315 301 25 26 109 109 38 36 Expected return on plan assets (445 ) (524 ) — — (160 ) (185 ) (16 ) (18 ) Amortization of: Actuarial losses 74 60 5 7 41 52 2 4 Prior service costs/(credits) (2 ) 1 — — (2 ) (2 ) (89 ) (90 ) Curtailments — 9 — — — — — (14 ) Settlements 2 45 — 21 — — — — Special termination benefits 1 — 9 — — — 1 — $ (55 ) $ (107 ) $ 37 $ 55 $ 51 $ 44 $ (46 ) $ (63 ) The following table provides the amounts we contributed, and the amounts we expect to contribute during 2019, to our pension and postretirement plans from our general assets for the periods indicated: 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 June 30, 2019 $ 5 $ 99 $ 130 $ 67 Expected contributions from our general assets during 2019 (a) 11 197 191 147 |
Schedule of Employer Contributions to Pension and Postretirement Plans | The following table provides the amounts we contributed, and the amounts we expect to contribute during 2019, to our pension and postretirement plans from our general assets for the periods indicated: 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 June 30, 2019 $ 5 $ 99 $ 130 $ 67 Expected contributions from our general assets during 2019 (a) 11 197 191 147 (a) Contributions expected to be made for 2019 are inclusive of amounts contributed during the six months ended June 30, 2019 . The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings Per Common Share Att_2
Earnings Per Common Share Attributable to Common Shareholders (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning Per Share | The following table provides the detailed calculation of EPS : Three Months Ended Six Months Ended (IN MILLIONS) June 30, July 1, June 30, July 1, EPS Numerator––Basic Income from continuing operations $ 5,056 $ 3,879 $ 8,945 $ 7,450 Less: Net income attributable to noncontrolling interests 10 7 15 16 Income from continuing operations attributable to Pfizer Inc. 5,046 3,872 8,929 7,434 Less: Preferred stock dividends––net of tax — — — 1 Income from continuing operations attributable to Pfizer Inc. common shareholders 5,045 3,871 8,929 7,433 Discontinued operations––net of tax — — — (1 ) Net income attributable to Pfizer Inc. common shareholders $ 5,045 $ 3,871 $ 8,929 $ 7,432 EPS Numerator––Diluted Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions $ 5,046 $ 3,872 $ 8,929 $ 7,434 Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions — — — (1 ) Net income attributable to Pfizer Inc. common shareholders and assumed conversions $ 5,046 $ 3,872 $ 8,929 $ 7,432 EPS Denominator Weighted-average number of common shares outstanding––Basic 5,562 5,866 5,598 5,911 Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements 110 86 112 93 Weighted-average number of common shares outstanding––Diluted 5,672 5,952 5,711 6,004 Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans (a) 1 3 2 2 Cash dividends declared per share $ 0.36 $ 0.34 $ 0.72 $ 0.68 (a) 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. |
Segment, Geographic and Other_2
Segment, Geographic and Other Revenue Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 9,595 $ 9,434 $ 6,093 $ 5,958 Upjohn 2,807 3,147 1,951 2,222 Total reportable segments 12,402 12,581 8,044 8,181 Other business activities — — (1,193 ) (1,119 ) Reconciling Items: Corporate and other unallocated 862 886 (1,399 ) (1,576 ) Purchase accounting adjustments — — (1,178 ) (1,134 ) Acquisition-related costs — — 176 (62 ) Certain significant items (b) — — (309 ) 237 $ 13,264 $ 13,466 $ 4,141 $ 4,527 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 18,779 $ 18,315 $ 11,981 $ 11,781 Upjohn 5,882 6,267 4,225 4,391 Total reportable segments 24,661 24,582 16,206 16,172 Other business activities — — (2,306 ) (2,307 ) Reconciling Items: Corporate and other unallocated 1,721 1,791 (2,676 ) (2,900 ) Purchase accounting adjustments — — (2,217 ) (2,355 ) Acquisition-related costs — — 148 (110 ) Certain significant items (b) — — (691 ) 154 $ 26,382 $ 26,373 $ 8,463 $ 8,654 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include d ividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018 , and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4. (b) 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 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million , (ii) charges for certain legal matters of $15 million , (iii) certain asset impairment charges of $10 million , (iv) charges for business and legal entity alignment of $141 million , (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million . For additional information, see Note 3 and Note 4. For Earnings in the second quarter of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million , (ii) a net credit for certain legal matters of $88 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $1 million , (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million , (ii) charges for certain legal matters of $9 million , (iii) certain asset impairment charges of $149 million , (iv) charges for business and legal entity alignment of $264 million , (v) net gains recognized during the period on investments in equity securities of $136 million , (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million . For additional information, see Note 3 and Note 4. For Earnings in the first six months of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million , (ii) net credits for certain legal matters of $107 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $4 million , (v) net gains recognized during the period on investments in equity securities of $375 million , (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. 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) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 9,595 $ 9,434 $ 6,093 $ 5,958 Upjohn 2,807 3,147 1,951 2,222 Total reportable segments 12,402 12,581 8,044 8,181 Other business activities — — (1,193 ) (1,119 ) Reconciling Items: Corporate and other unallocated 862 886 (1,399 ) (1,576 ) Purchase accounting adjustments — — (1,178 ) (1,134 ) Acquisition-related costs — — 176 (62 ) Certain significant items (b) — — (309 ) 237 $ 13,264 $ 13,466 $ 4,141 $ 4,527 Six Months Ended Revenues Earnings (a) (MILLIONS OF DOLLARS) June 30, July 1, June 30, July 1, Reportable Segments: Biopharma $ 18,779 $ 18,315 $ 11,981 $ 11,781 Upjohn 5,882 6,267 4,225 4,391 Total reportable segments 24,661 24,582 16,206 16,172 Other business activities — — (2,306 ) (2,307 ) Reconciling Items: Corporate and other unallocated 1,721 1,791 (2,676 ) (2,900 ) Purchase accounting adjustments — — (2,217 ) (2,355 ) Acquisition-related costs — — 148 (110 ) Certain significant items (b) — — (691 ) 154 $ 26,382 $ 26,373 $ 8,463 $ 8,654 (a) Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include d ividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018 , and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4. (b) 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 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million , (ii) charges for certain legal matters of $15 million , (iii) certain asset impairment charges of $10 million , (iv) charges for business and legal entity alignment of $141 million , (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million . For additional information, see Note 3 and Note 4. For Earnings in the second quarter of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million , (ii) a net credit for certain legal matters of $88 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $1 million , (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million , (ii) charges for certain legal matters of $9 million , (iii) certain asset impairment charges of $149 million , (iv) charges for business and legal entity alignment of $264 million , (v) net gains recognized during the period on investments in equity securities of $136 million , (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million . For additional information, see Note 3 and Note 4. For Earnings in the first six months of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million , (ii) net credits for certain legal matters of $107 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $4 million , (v) net gains recognized during the period on investments in equity securities of $375 million , (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. 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) June 30, July 1, % Change June 30, July 1, % Change U.S. $ 6,335 $ 6,225 2 $ 12,510 $ 12,500 — Developed Europe (a) 2,228 2,334 (5 ) 4,315 4,426 (3 ) Developed Rest of World (b) 1,639 1,694 (3 ) 3,174 3,155 1 Emerging Markets (c) 3,062 3,214 (5 ) 6,383 6,292 1 Revenues $ 13,264 $ 13,466 (2 ) $ 26,382 $ 26,373 — (a) Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion in the second quarter of 2019 and $1.9 billion in the second quarter of 2018 , and were $3.5 billion in the first six months of 2019 and $3.6 billion in the first six months of 2018 . (b) Developed Rest of World region includes the following markets: Japan, Canada, South Korea, Australia and New Zealand. (c) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Africa, Central Europe and Turkey. |
Schedule of Significant Product Revenues | The following table provides detailed revenue information: (MILLIONS OF DOLLARS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATIONS OR CLASS June 30, July 1, June 30, July 1, TOTAL REVENUES $ 13,264 $ 13,466 $ 26,382 $ 26,373 PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA) (a) $ 9,595 $ 9,434 $ 18,779 $ 18,315 Internal Medicine (b) $ 2,330 $ 2,276 $ 4,546 $ 4,347 Eliquis alliance revenues and direct sales Atrial fibrillation, deep vein thrombosis, pulmonary embolism 1,085 889 2,096 1,654 Chantix/Champix An aid to smoking cessation treatment in adults 18 years of age or older 276 277 549 528 Premarin family Symptoms of menopause 193 210 361 401 BMP2 Development of bone and cartilage 79 80 145 153 Toviaz Overactive bladder 65 70 125 130 All other Internal Medicine Various 631 750 1,270 1,480 Oncology (c) $ 2,236 $ 1,888 $ 4,198 $ 3,648 Ibrance Advanced breast cancer 1,261 1,027 2,394 1,960 Sutent Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 248 275 480 537 Xtandi alliance revenues Castration-resistant prostate cancer 201 171 369 330 Xalkori ALK-positive and ROS1-positive advanced NSCLC 133 137 255 290 Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 97 77 177 138 Inlyta Advanced RCC 104 81 177 155 Retacrit (j) Anemia 51 18 82 36 All other Oncology Various 140 100 262 201 Hospital (d) $ 1,913 $ 2,077 $ 3,800 $ 4,103 Sulperazon Treatment of infections 165 150 342 319 Medrol (e) Steroid anti-inflammatory 120 123 240 258 Vfend Fungal infections 94 110 178 207 Zithromax (e) Bacterial infections 73 81 177 182 EpiPen Epinephrine injection used in treatment of life-threatening allergic reactions 80 95 146 148 Zyvox Bacterial infections 71 66 134 134 Fragmin Slows blood clotting 63 74 123 145 Zosyn/Tazocin Antibiotic 53 58 104 120 Pfizer CentreOne (f) Various 204 209 380 381 All other Anti-infectives Various 367 362 721 755 All other Hospital (d) Various 623 748 1,254 1,455 Vaccines $ 1,375 $ 1,400 $ 2,988 $ 2,863 Prevnar 13/Prevenar 13 Pneumococcal disease 1,179 1,250 2,665 2,631 FSME/IMMUN-TicoVac Tick-borne encephalitis disease 95 73 133 105 Nimenrix Meningococcal disease 58 30 107 49 All other Vaccines Various 43 47 82 78 Inflammation & Immunology (I&I) (g) $ 1,219 $ 1,222 $ 2,256 $ 2,235 Xeljanz RA, PsA, UC 613 463 1,036 788 Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 420 551 871 1,057 Inflectra/Remsima (g), (j) Inflammatory diseases 153 158 291 303 Eucrisa Mild-to-moderate atopic dermatitis (eczema) 27 39 50 65 All other I&I Various 6 11 9 22 Rare Disease $ 521 $ 571 $ 991 $ 1,120 BeneFIX Hemophilia 121 141 247 288 Genotropin Replacement of human growth hormone 125 140 232 272 Refacto AF/Xyntha Hemophilia 108 141 214 271 Somavert Acromegaly 68 68 128 131 Vyndaqel ATTR-Cardiomyopathy and Polyneuropathy 63 38 104 72 All other Rare Disease Various 35 43 66 86 (MILLIONS OF DOLLARS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATIONS OR CLASS June 30, July 1, June 30, July 1, UPJOHN (b) , (h) $ 2,807 $ 3,147 $ 5,882 $ 6,267 Lyrica Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury 1,175 1,223 2,362 2,436 Lipitor Reduction of LDL cholesterol 407 521 1,029 1,032 Norvasc Hypertension 216 273 516 529 Celebrex Arthritis pain and inflammation, acute pain 174 161 347 306 Viagra Erectile dysfunction 114 185 259 372 Effexor Depression and certain anxiety disorders 86 79 163 150 Zoloft Depression and certain anxiety disorders 73 77 143 151 Xalatan/Xalacom Glaucoma and ocular hypertension 72 85 133 157 Revatio Pulmonary arterial hypertension 56 54 98 109 Xanax Anxiety disorders 52 56 98 111 All other Upjohn Various 382 433 735 914 CONSUMER HEALTHCARE BUSINESS (i) $ 862 $ 886 $ 1,721 $ 1,791 Total Alliance revenues Various $ 1,187 $ 987 $ 2,277 $ 1,842 Total Biosimilars (j) Various $ 217 $ 188 $ 396 $ 361 Total Sterile Injectable Pharmaceuticals (k) $ 1,218 $ 1,329 $ 2,455 $ 2,688 (a) The Pfizer Biopharmaceuticals Group encompasses Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology and Rare Disease. The new Hospital business unit commercializes our global portfolio of sterile injectable and anti-infective medicines, and also includes Pfizer CentreOne (f) . (b) We reclassified certain products from the LEP category, including Premarin family products, and certain other products from the legacy Peri-LOE category, including Pristiq, to the Internal Medicine category and reclassified Lyrica from the Internal Medicine category to the Upjohn business to conform 2018 product revenues to the current presentation. (c) We performed certain reclassifications in the All other Oncology category to conform 2018 product revenues to the current presentation. (d) Hospital is a new business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. We performed certain reclassifications, primarily from the legacy Sterile Injectables Pharmaceuticals (SIP) category (Sulperazon, Medrol, Fragmin, Tygacil, Zosyn/Tazocin and Precedex, among other products), the LEP category (Epipen and Zithromax), and the legacy Peri-LOE category (Vfend and Zyvox) to the Hospital category to conform 2018 product revenues to the current presentation. Hospital also includes Pfizer CentreOne (f) . All other Hospital primarily includes revenues from legacy SIP products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. (e) 2018 revenues for Medrol and Zithromax may not agree to previously disclosed revenues because revenues for those products were previously split between LEP and the legacy SIP categories. All revenues for these products are currently reported in the Hospital category. (f) 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 Inc. In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within legacy All Other LEP and legacy All Other SIP, are reported in emerging markets within Pfizer CentreOne. (g) We reclassified Inflectra/Remsima from the legacy Biosimilars category to the Inflammation & Immunology category to conform 2018 product revenues to the current presentation. (h) Pfizer’s Upjohn business encompasses primarily off-patent branded and generic established medicines that includes 20 of our primarily off-patent solid oral dose legacy brands including Lyrica, Lipitor, Norvasc, Celebrex and Viagra, as well as certain generic medicines. (i) Pfizer’s Consumer Healthcare business is an over-the-counter medicines business, which on July 31, 2019 was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. For additional information, see Note 2 . (j) Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima and Retacrit. (k) Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) $ / shares in Units, $ in Millions | Jul. 30, 2019USD ($)$ / shares | Jul. 01, 2019USD ($) | Jan. 01, 2019USD ($)Accounting_standard | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)Operating_Segment | Dec. 31, 2018USD ($)Operating_Segment | Jun. 28, 2020 | Jan. 01, 2018Accounting_standard |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Number of business segments | Operating_Segment | 3 | 2 | ||||||
Number of accounting standards adopted | Accounting_standard | 4 | 11 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
ROU assets | $ 1,273 | $ 1,273 | ||||||
Lease liabilities (long-term) | 1,026 | 1,026 | ||||||
Accrued rebates and other accruals | 5,574 | 5,574 | $ 5,426 | |||||
Variable lease payments | $ 59 | $ 118 | ||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
ROU assets | $ 1,400 | |||||||
Lease liabilities (long-term) | 1,400 | |||||||
Cumulative effect adjustment to retained earnings, pre-tax | 30 | |||||||
Cumulative effect adjustment to retained earnings, after-tax | $ 20 | |||||||
Minimum [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease term | 1 year | 1 year | ||||||
Operating lease term, option to extend | 5 years | |||||||
Maximum [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease term | 30 years | 30 years | ||||||
Operating lease term, option to extend | 10 years | |||||||
Therachon [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Percentage of voting interests previously acquired | 3.00% | |||||||
Subsequent Event [Member] | Array [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Business acquisition, per share in cash (in dollars per share) | $ / shares | $ 48 | |||||||
Payments for acquisitions, cash portion | $ 11,400 | |||||||
Subsequent Event [Member] | Therachon [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Payments for acquisitions, cash portion | $ 340 | |||||||
Maximum amount of potential milestone payments | $ 470 | |||||||
Upjohn And Mylan [Member] | Forecast [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership percentage | 57.00% | |||||||
Upjohn And Mylan [Member] | Mylan [Member] | Forecast [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 43.00% |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Impact of Lease Standard Adoption (Details) - USD ($) $ in Millions | Jun. 30, 2019 | [1] | Jan. 01, 2019 | Dec. 31, 2018 | [1] |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other current assets | $ 2,535 | $ 2,460 | $ 2,461 | ||
Noncurrent deferred tax assets and other noncurrent tax assets | 1,935 | 1,913 | 1,924 | ||
Other noncurrent assets | 4,388 | 4,149 | 2,799 | ||
Other current liabilities | 10,110 | 11,011 | 10,753 | ||
Other noncurrent liabilities | 6,183 | 6,910 | 5,850 | ||
Retained earnings | $ 94,440 | 89,574 | $ 89,554 | ||
Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other current assets | (1) | ||||
Noncurrent deferred tax assets and other noncurrent tax assets | (11) | ||||
Other noncurrent assets | 1,351 | ||||
Other current liabilities | 258 | ||||
Other noncurrent liabilities | 1,060 | ||||
Retained earnings | $ 20 | ||||
[1] | Amounts may not add due to rounding. |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Accrued Rebates and Other Accruals (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | $ 5,574 | $ 5,426 |
Trade accounts receivable, less allowance for doubtful accounts [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | 1,226 | 1,288 |
Other current liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates | 3,256 | 3,208 |
Other accruals | 620 | 531 |
Other noncurrent liabilities [Member] | ||
Schedule Of Accrued Liabilities [Line Items] | ||
Accrued rebates and other accruals | $ 472 | $ 399 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - ROU Assets and Liabilities Presented in Balance Sheet (Details) $ in Millions | Jun. 30, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ROU assets | $ 1,273 |
Lease liabilities (short-term) | 263 |
Lease liabilities (long-term) | $ 1,026 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Total Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease cost | $ 100 | $ 200 |
Variable lease cost | 59 | 118 |
Sublease income | (11) | (21) |
Total lease cost | $ 148 | $ 297 |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Other Supplemental Lease Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating leases, weighted-average remaining contractual lease term | 7 years 1 month 6 days |
Operating lease, weighted-average discount rate | 3.70% |
Operating cash flows from operating leases | $ 156 |
ROU assets obtained in exchange for new operating lease liabilities | $ 122 |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Future Minimum Rental Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2019 | Apr. 30, 2018 | ||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||||||
Next one year | [1] | $ 302 | ||||
1-2 years | 254 | |||||
2-3 years | 216 | |||||
3-4 years | 171 | |||||
4-5 years | 122 | |||||
Thereafter | 419 | |||||
Total undiscounted lease payments | 1,483 | |||||
Less: Imputed interest | 195 | |||||
Present Value of Minimum Lease Payments | 1,288 | |||||
Less: Current portion | 263 | |||||
Noncurrent portion | $ 1,026 | |||||
Rental expense, net of sublease income | $ 301 | $ 314 | $ 292 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2019 | 300 | |||||
2020 | 252 | |||||
2021 | 210 | |||||
2022 | 267 | |||||
2023 | 248 | |||||
After 2023 | $ 2,040 | |||||
Office Building in New York City [Member] | ||||||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||||||
Term of corporate headquarters lease agreement | 20 years | |||||
Future minimum commitment for corporate headquarters lease | $ 1,700 | |||||
[1] | Reflects lease payments due within 12 months subsequent to the balance sheet date. |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 31, 2019 | Dec. 31, 2018 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Total Consumer Healthcare liabilities held for sale | [1] | $ 2,009 | $ 2,009 | $ 1,890 | |||
Held-for-sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other assets held for sale | [2] | 56 | 56 | 46 | |||
Assets held for sale | 9,877 | 9,877 | 9,725 | ||||
Consumer Healthcare [Member] | Held-for-sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash and cash equivalents | 53 | 53 | 32 | ||||
Trade accounts receivable, less allowance for doubtful accounts | 555 | 555 | 532 | ||||
Inventories | 580 | 580 | 538 | ||||
Other current assets | 56 | 56 | 56 | ||||
PP&E | 714 | 714 | 675 | ||||
Identifiable intangible assets, less accumulated amortization | 5,753 | 5,753 | 5,763 | ||||
Goodwill | 1,965 | 1,965 | 1,972 | ||||
Noncurrent deferred tax assets and other noncurrent tax assets | 55 | 55 | 54 | ||||
Other noncurrent assets | 91 | 91 | 57 | ||||
Assets held for sale | 9,821 | 9,821 | 9,678 | ||||
Trade accounts payable | 348 | 348 | 406 | ||||
Income taxes payable | 63 | 63 | 39 | ||||
Accrued compensation and related items | 79 | 79 | 93 | ||||
Other current liabilities | 334 | 334 | 353 | ||||
Pension benefit obligations, net | 41 | 41 | 39 | ||||
Postretirement benefit obligations, net | 34 | 34 | 33 | ||||
Noncurrent deferred tax liabilities | 1,036 | 1,036 | 870 | ||||
Other noncurrent liabilities | 74 | 74 | 56 | ||||
Total Consumer Healthcare liabilities held for sale | 2,009 | 2,009 | $ 1,890 | ||||
Pre-tax income on a management business unit basis | $ 274 | $ 249 | $ 554 | $ 514 | |||
Subsequent Event [Member] | GSK Consumer Healthcare [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Equity method investment, ownership percentage | 32.00% | ||||||
Subsequent Event [Member] | GSK [Member] | GSK Consumer Healthcare [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Equity method investment, ownership percentage | 68.00% | ||||||
[1] | Amounts may not add due to rounding. | ||||||
[2] | Other assets held for sale consist of PP&E. |
Restructuring Charges and Oth_3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)Operating_Segment | Dec. 31, 2018Operating_Segment | |
Restructuring Cost and Reserve [Line Items] | ||
Number of business segments | Operating_Segment | 3 | 2 |
Restructuring costs incurred | $ 32 | |
2017 Through 2019 Initiatives And Organizing For Growth [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring cost | $ 600 | |
Percentage of expected costs to be non-cash | 20.00% | |
Restructuring costs incurred | $ 180 | |
Manufacturing Plant Network Optimization [Member] | 2017 Through 2019 Initiatives And Organizing For Growth [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs incurred | 774 | |
Other Activities [Member] | 2017 Through 2019 Initiatives And Organizing For Growth [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs incurred | 871 | |
Business Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs incurred | (199) | |
Hospira [Member] | Business Integration Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs incurred | $ 51 |
Restructuring Charges and Oth_4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |||
Restructuring charges: | ||||||
Employee terminations | $ (166) | $ (21) | $ (167) | $ (29) | ||
Asset impairments | (9) | (6) | 0 | (4) | ||
Exit costs | 31 | 3 | 34 | 0 | ||
Restructuring charges/(credits) | [1] | (144) | (24) | (134) | [2] | (33) |
Integration costs | [3] | 29 | 68 | 64 | 120 | |
Restructuring charges and certain acquisition-related costs | [4] | (115) | 44 | (69) | 87 | |
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [5] | 10 | 13 | 23 | 31 | |
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||
Implementation costs | [6] | 42 | 44 | 69 | 82 | |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | (59) | 131 | 32 | 262 | ||
OID [Member] | ||||||
Restructuring charges: | ||||||
Net periodic pension and postretirement benefit costs recorded in Other (income)/deductions––net | 4 | 29 | 10 | 61 | ||
Cost of Sales [Member] | ||||||
Restructuring charges: | ||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [5] | 7 | 13 | 15 | 30 | |
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||
Implementation costs | [6] | 17 | 20 | 31 | 36 | |
Selling, Informational and Administrative Expenses [Member] | ||||||
Restructuring charges: | ||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [5] | 1 | 0 | 2 | 0 | |
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||
Implementation costs | [6] | 16 | 16 | 25 | 34 | |
Research and Development Expense [Member] | ||||||
Restructuring charges: | ||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income | [5] | 2 | 0 | 5 | 0 | |
Implementation costs recorded in our condensed consolidated statements of income as follows: | ||||||
Implementation costs | [6] | $ 9 | $ 7 | $ 13 | $ 13 | |
[1] | In the second quarter and first six months of 2019 , restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B ). In the three and six months ended July 1, 2018 , restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. The restructuring activities for 2019 are associated with the following: • For the second quarter of 2019 , Biopharma ( $62 million credit ); Upjohn ( $9 million credit ); and Other ( $74 million credit). • For the first six months of 2019 , Biopharma ( $48 million credit ); Upjohn ( $22 million credit ); and Other ( $63 million credit). The restructuring activities for 2018 are associated with the following: • For the second quarter of 2018, total reportable segments ( $10 million credit); and Other ( $13 million credit). • For the first six months of 2018, total reportable segments ( $24 million credit); and Other ( $9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments. | |||||
[2] | Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information. | |||||
[3] | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. In the second quarter and first six months of 2019 and 2018, integration costs were primarily related to our acquisition of Hospira. | |||||
[4] | Amounts may not add due to rounding. | |||||
[5] | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | |||||
[6] | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring Charges and Oth_5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges (income) | [1] | $ (144) | $ (24) | $ (134) | [2] | $ (33) |
Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges (income) | (74) | (13) | (63) | (9) | ||
Biopharma and Upjohn [Member] | Operating Segments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges (income) | $ (10) | $ (24) | ||||
Biopharma [Member] | Operating Segments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges (income) | (62) | (48) | ||||
Upjohn [Member] | Operating Segments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges (income) | $ (9) | $ (22) | ||||
[1] | In the second quarter and first six months of 2019 , restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B ). In the three and six months ended July 1, 2018 , restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. The restructuring activities for 2019 are associated with the following: • For the second quarter of 2019 , Biopharma ( $62 million credit ); Upjohn ( $9 million credit ); and Other ( $74 million credit). • For the first six months of 2019 , Biopharma ( $48 million credit ); Upjohn ( $22 million credit ); and Other ( $63 million credit). The restructuring activities for 2018 are associated with the following: • For the second quarter of 2018, total reportable segments ( $10 million credit); and Other ( $13 million credit). • For the first six months of 2018, total reportable segments ( $24 million credit); and Other ( $9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments. | |||||
[2] | Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information. |
Restructuring Charges and Oth_6
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |||
Restructuring Reserve [Roll Forward] | ||||||
Balance, December 31, 2018 | [1] | $ 1,252 | ||||
Provision/(credit)(b) | [2] | $ (144) | $ (24) | (134) | [3] | $ (33) |
Utilization and other | [4] | (321) | ||||
Balance, June 30, 2019 | [5] | 797 | 797 | |||
Employee Termination Costs [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, December 31, 2018 | [1] | 1,203 | ||||
Provision/(credit)(b) | [3] | (167) | ||||
Utilization and other | [4] | (303) | ||||
Balance, June 30, 2019 | [5] | 733 | 733 | |||
Asset Impairment Charges [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, December 31, 2018 | [1] | 0 | ||||
Provision/(credit)(b) | [3] | 0 | ||||
Utilization and other | [4] | 0 | ||||
Balance, June 30, 2019 | [5] | 0 | 0 | |||
Exit Costs [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, December 31, 2018 | [1] | 49 | ||||
Provision/(credit)(b) | [3] | 34 | ||||
Utilization and other | [4] | (18) | ||||
Balance, June 30, 2019 | [5] | $ 64 | $ 64 | |||
[1] | Included in Other current liabilities ( $823 million ) and Other noncurrent liabilities ( $428 million ). | |||||
[2] | In the second quarter and first six months of 2019 , restructuring credits mostly represent the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years (see Note 5B ). In the three and six months ended July 1, 2018 , restructuring credits were associated with cost-reduction and productivity initiatives not associated with acquisitions, as well as acquisition-related costs, primarily associated with Hospira. The restructuring activities for 2019 are associated with the following: • For the second quarter of 2019 , Biopharma ( $62 million credit ); Upjohn ( $9 million credit ); and Other ( $74 million credit). • For the first six months of 2019 , Biopharma ( $48 million credit ); Upjohn ( $22 million credit ); and Other ( $63 million credit). The restructuring activities for 2018 are associated with the following: • For the second quarter of 2018, total reportable segments ( $10 million credit); and Other ( $13 million credit). • For the first six months of 2018, total reportable segments ( $24 million credit); and Other ( $9 million credit). At the beginning of fiscal 2019, we revised our operating segments and are unable to directly associate these prior-period restructuring charges with the new individual segments. | |||||
[3] | Includes the reversal of certain accruals related to our acquisition of Wyeth upon the effective favorable settlement of a U.S. IRS audit for multiple tax years. See Note 5B for additional information. | |||||
[4] | Includes adjustments for foreign currency translation. | |||||
[5] | Included in Other current liabilities ( $593 million ) and Other noncurrent liabilities ( $204 million ). |
Restructuring Charges and Oth_7
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals - Footnotes (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 797 | [1] | $ 1,252 | [2] |
Other Current Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 593 | 823 | ||
Other Noncurrent Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 204 | $ 428 | ||
[1] | Included in Other current liabilities ( $593 million ) and Other noncurrent liabilities ( $204 million ). | |||
[2] | Included in Other current liabilities ( $823 million ) and Other noncurrent liabilities ( $428 million ). |
Other (Income)_Deductions - N_3
Other (Income)/Deductions - Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Other Income and Expenses [Abstract] | |||||
Interest income | [1] | $ (59) | $ (80) | $ (125) | $ (157) |
Interest expense | [1] | 389 | 326 | 750 | 635 |
Net interest expense | 330 | 245 | 625 | 478 | |
Royalty-related income | [2] | (231) | (121) | (320) | (217) |
Net gains on asset disposals | 0 | (15) | (1) | (22) | |
Net gains recognized during the period on investments in equity securities | [3],[4] | (36) | (257) | (147) | (375) |
Net realized losses on sales of investments in debt securities | 0 | 8 | 0 | 12 | |
Income from collaborations, out-licensing arrangements and sales of compound/product rights | [5] | (22) | (174) | (104) | (316) |
Net periodic benefit credits other than service costs | [6] | (51) | (84) | (91) | (166) |
Certain legal matters, net | [7] | 15 | (88) | 19 | (107) |
Certain asset impairments | [8] | 10 | 40 | 160 | 40 |
Business and legal entity alignment costs | [9] | 137 | 1 | 256 | 4 |
Net losses on early retirement of debt | [10] | 0 | 0 | 138 | 3 |
Other, net | [11] | (27) | (106) | (318) | (64) |
Other (income)/deductions––net | [12] | $ 126 | $ (551) | $ 218 | $ (728) |
[1] | Interest income decreased in the second quarter and first six months of 2019 , primarily driven by a lower investment balance. Interest expense increased in the second quarter and first six months of 2019 , mainly as a result of higher short-term interest rates, as well as the retirement of lower-coupon debt and the issuance of new debt with a higher coupon than the debt outstanding for the comparative prior year periods. | ||||
[2] | The increase in royalty-related income for the second quarter and first six months of 2019 is primarily due to a one-time favorable resolution in the second quarter of 2019 of a legal dispute for $82 million . | ||||
[3] | The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . | ||||
[4] | The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . | ||||
[5] | Includes income from upfront and milestone payments from our collaboration partners and income from out-licensing arrangements and sales of compound/product rights. In the first six months of 2019 , mainly includes $68 million in milestone income from Mylan Pharmaceuticals Inc. related to the FDA’s approval and launch of Wixela Inhub ® , a generic of Advair Diskus ® (fluticasone propionate and salmeterol inhalation powder). In the second quarter of 2018 , primarily included, among other things, $88 million in milestone income from multiple licensees and an upfront payment to us of $75 million for the sale of an α-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid (AMPA) receptor potentiator for cognitive impairment associated with schizophrenia (CIAS) to Biogen Inc. In the first six months of 2018, mainly includes, among other things, all of the factors discussed above for the second quarter of 2018, as well as a $75 million milestone payment received from Shire related to their first dosing of a patient in a Phase 3 clinical trial of a compound out-licensed by Pfizer to Shire for the treatment of ulcerative colitis, and a $40 million milestone payment from Merck in conjunction with the approval of ertugliflozin in the EU. | ||||
[6] | For additional information, see Note 10 . | ||||
[7] | In the second quarter and first six months of 2018, primarily represented the reversal of a legal accrual where a loss was no longer deemed probable. | ||||
[8] | The second quarter and first six months of 2019 include an intangible asset impairment charge of $10 million and the second quarter and first six months of 2018 included an intangible asset impairment charge of $31 million , which are all related to a finite-lived developed technology right, acquired in connection with our acquisition of Anacor, for the treatment for toenail fungus marketed in the U.S. market only, associated with Biopharma and reflect , among other things, updated commercial forecasts. The first six months of 2019 also includes intangible asset impairment charges of: (i) $90 million related to WRDM IPR&D, which relates to a pre-clinical stage asset from our acquisition of Bamboo for gene therapies for the potential treatment of patients with certain rare diseases; and (ii) $40 million related to a Biopharma developed technology right, acquired in connection with our acquisition of King, for government defense products. The WRDM IPR&D intangible asset impairment charge was the result of a determination to not use certain Bamboo IPR&D acquired in future rare disease development. The intangible asset impairment charge related to the Biopharma developed technology right reflects, among other things, updated commercial forecasts including manufacturing cost assumptions. In addition, the first six months of 2019 , includes other asset impairments of $20 million . | ||||
[9] | In the second quarter and first six months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. In the second quarter and first six months of 2018, represents expenses for changes to our infrastructure to align our commercial operations that existed through December 31, 2018, 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. | ||||
[10] | In the first six months of 2019 , represents net losses due to the early retirement of debt in the first quarter of 2019, inclusive of the related termination of cross-currency swaps. | ||||
[11] | The second quarter of 2019 includes, among other things, charges of $81 million , reflecting the change in the fair value of contingent consideration, dividend income of $76 million from our investment in ViiV and $25 million of income from insurance recoveries related to Hurricane Maria. The first six months of 2019 includes, among other things, dividend income of $140 million from our investment in ViiV and $50 million of income from insurance recoveries related to Hurricane Maria. The second quarter of 2018 included, among other things, dividend income of $76 million from our investment in ViiV, and charges of $23 million , reflecting the change in the fair value of contingent consideration. The first six months of 2018 included, among other things, dividend income of $135 million from our investment in ViiV, and charges of $135 million reflecting the change in the fair value of contingent consideration. The second quarter and first six months of 2018 also included a non-cash $50 million pre-tax gain on the contribution of Pfizer’s allogeneic CAR T development program assets obtained from Cellectis S.A. and Les Laboratoires Servier SAS in connection with our contribution agreement entered into with Allogene, and a non-cash $17 million gain on the cash settlement of a liability that we incurred in April 2018 upon the EU approval of Mylotarg. | ||||
[12] | Amounts may not add due to rounding. |
Other (Income)_Deductions - N_4
Other (Income)/Deductions - Net - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Loss Contingencies [Line Items] | |||||
Proceeds from favorable resolution of legal dispute | $ 82 | ||||
Gains related to equity securities | [1],[2] | 36 | $ 257 | $ 147 | $ 375 |
Intangible asset impairment charge | 10 | 31 | 10 | 31 | |
Other asset impairments | 20 | ||||
Change in fair value of contingent consideration | 81 | 23 | 135 | ||
Income from insurance recoveries | 25 | 50 | |||
Allogene [Member] | |||||
Loss Contingencies [Line Items] | |||||
Non-cash pre-tax gain on contribution of assets | 50 | 50 | |||
ViiV Healthcare Limited [Member] | |||||
Loss Contingencies [Line Items] | |||||
Dividend income | $ 76 | 76 | 140 | 135 | |
Mylan [Member] | Collaborative Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 68 | ||||
Shire [Member] | Licensing Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Proceeds from licensing arrangement | 75 | ||||
Merck [Member] | Collaborative Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 40 | ||||
Disposed of by Sale [Member] | HIS [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gains related to equity securities | 142 | 203 | |||
Disposed of by Sale [Member] | Phase 2b Ready AMPA Receptor Potentiator For CIAS [Member] | |||||
Loss Contingencies [Line Items] | |||||
Consideration transferred | 75 | 75 | |||
Developed Technology Rights [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | [3] | 50 | |||
In Process Research and Development [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | [3] | 90 | |||
Pfizer's Worldwide Research, Development And Medical [Member] | In Process Research and Development [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | 90 | ||||
Biopharma [Member] | Operating Segments [Member] | Developed Technology Rights [Member] | |||||
Loss Contingencies [Line Items] | |||||
Intangible asset impairment charge | $ 40 | ||||
Other Nonoperating Income (Expense) [Member] | Licensing Arrangement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Milestone payment received | 88 | ||||
Mylotarg [Member] | EU [Member] | Developed Technology Rights [Member] | |||||
Loss Contingencies [Line Items] | |||||
Non-cash gain on cash settlement of liability | $ 17 | $ 17 | |||
[1] | The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . | ||||
[2] | The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . | ||||
[3] | Reflects intangible assets written down to fair value in the first six months of 2019 . Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other (Income)_Deductions - N_5
Other (Income)/Deductions - Net - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Total | [1] | $ 13 | $ 13 | ||
Impairment | 10 | $ 31 | 10 | $ 31 | |
Developed Technology Right [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-Developed technology right | [1],[2] | 13 | 13 | ||
Impairment | [2] | 50 | |||
Level 1 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total | [1] | 0 | 0 | ||
Level 1 [Member] | Developed Technology Right [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-Developed technology right | [1],[2] | 0 | 0 | ||
Level 2 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total | [1] | 0 | 0 | ||
Level 2 [Member] | Developed Technology Right [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-Developed technology right | [1],[2] | 0 | 0 | ||
Level 3 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total | [1] | 13 | 13 | ||
Level 3 [Member] | Developed Technology Right [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-Developed technology right | [1],[2] | 13 | 13 | ||
In Process Research and Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-IPR&D | [1],[2] | 0 | 0 | ||
Impairment | [2] | 90 | |||
In Process Research and Development [Member] | Level 1 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-IPR&D | [1],[2] | 0 | 0 | ||
In Process Research and Development [Member] | Level 2 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-IPR&D | [1],[2] | 0 | 0 | ||
In Process Research and Development [Member] | Level 3 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets-IPR&D | [1],[2] | $ 0 | $ 0 | ||
[1] | The fair value amount is presented as of the date of impairment, as these assets are not measured at fair value on a recurring basis. | ||||
[2] | Reflects intangible assets written down to fair value in the first six months of 2019 . Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax Matters - Narrative (Detail
Tax Matters - Narrative (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2019 | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Income Taxes [Line Items] | |||||
Benefit recorded as a result of tax settlement | $ 1,400 | ||||
Effective tax rate for income from continuing operations | (22.10%) | 14.30% | (5.70%) | 13.90% | |
Repatriation tax liability | $ 15,000 | $ 15,000 | |||
First installment for repatriation tax | $ 750 | ||||
Income Taxes Payable [Member] | |||||
Income Taxes [Line Items] | |||||
Repatriation tax liability | $ 750 | $ 750 |
Tax Matters (Detail)
Tax Matters (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Foreign currency translation adjustments, net | [1] | $ (17) | $ 101 | $ 10 | $ 67 |
Unrealized holding gains/(losses) on derivative financial instruments, net | (53) | 8 | 6 | 4 | |
Reclassification adjustments for (gains)/losses included in net income | (4) | 72 | (59) | 65 | |
Derivatives qualifying as hedges, tax, total | (57) | 79 | (53) | 70 | |
Unrealized holding gains/(losses) on available-for-sale securities, net | (1) | (48) | 4 | (28) | |
Reclassification adjustments for (gains)/losses included in net income | 3 | 20 | 5 | (2) | |
Available-for-sale securities, tax, total | 2 | (29) | 9 | (76) | |
Benefit plans: actuarial gains/(losses), net | (1) | (13) | (1) | 25 | |
Reclassification adjustments related to amortization | 15 | 14 | 18 | 28 | |
Reclassification adjustments related to settlements, net | 0 | 7 | 1 | 15 | |
Other | 8 | 27 | 3 | 6 | |
Defined benefit plans, actuarial gain (loss), tax, total | 23 | 34 | 21 | 712 | |
Benefit plans: prior service costs and other, net | 0 | 0 | 0 | 0 | |
Reclassification adjustments related to amortization of prior service costs and other, net | (11) | (11) | (22) | (22) | |
Reclassification adjustments related to curtailments of prior service costs and other, net | 0 | 4 | 0 | (3) | |
Other | 0 | (6) | 0 | 0 | |
Pension and other postretirement benefit plans, net prior service cost (credit), tax | (11) | (13) | (22) | (168) | |
Tax provision/(benefit) on other comprehensive loss | [2] | (59) | 173 | (34) | 605 |
ASU 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification adjustments of certain tax effects from AOCI to Retained earnings | [3] | 0 | 0 | 0 | 1 |
Reclassification adjustments of certain tax effects from AOCI to Retained earnings | [3] | 0 | 0 | 0 | 637 |
Reclassification adjustments of certain tax effects from AOCI to Retained earnings | [3] | 0 | 0 | 0 | (144) |
ASU 2016-01 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification adjustments for tax on unrealized gains from AOCI to Retained earnings | [4] | $ 0 | $ 0 | $ 0 | $ (45) |
[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] | For additional information on the adoption of a new accounting standard related to reclassification of certain tax effects from AOCI, see Notes to Consolidated Financial Statements–– Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. | ||||
[4] | For additional information on the adoption of a new accounting standard related to financial assets and liabilities, see Notes to Consolidated Financial Statements–– Note 1B . Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards in 2018 in our 2018 Financial Report. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | $ 63,407 | [1] |
Balance, June 30, 2019 | 59,568 | [1] |
Foreign currency translation adjustments loss attributable to noncontrolling interests | 2 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | (11,275) | |
Other comprehensive income/(loss) | (260) | [2] |
Balance, June 30, 2019 | (11,535) | |
Foreign Currency Translation Adjustment [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | (6,075) | |
Other comprehensive income/(loss) | (167) | [2] |
Balance, June 30, 2019 | (6,242) | |
Derivative Financial Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | 167 | |
Other comprehensive income/(loss) | (200) | [2] |
Balance, June 30, 2019 | (33) | |
Cash flow hedge gain to be reclassified within twelve months | 153 | |
Available-For-Sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | (68) | |
Other comprehensive income/(loss) | 61 | [2] |
Balance, June 30, 2019 | (8) | |
Actuarial Gains/(Losses) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | (6,027) | |
Other comprehensive income/(loss) | 116 | [2] |
Balance, June 30, 2019 | (5,911) | |
Prior Service (Costs)/Credits and Other [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, December 31, 2018 | 728 | |
Other comprehensive income/(loss) | (70) | [2] |
Balance, June 30, 2019 | $ 658 | |
[1] | Amounts may not add due to rounding. | |
[2] | Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $2 million loss for the first six months of 2019 . |
Financial Instruments - Financi
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | $ 4,753 | $ 1,600 | |
Total assets | [1] | 156,199 | 159,422 |
Total liabilities | 577 | 1,024 | |
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 12,801 | 19,595 | |
Total liabilities | 577 | 1,024 | |
Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 4,753 | 1,600 | |
Available-for-sale debt securities | 5,027 | 15,091 | |
Total short-term investments | 9,780 | 16,691 | |
Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 412 | 574 | |
Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 79 | 97 | |
Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 334 | 477 | |
Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 430 | 491 | |
Trading funds and securities | 1,477 | 1,273 | |
Total long-term investments | 1,907 | 1,764 | |
Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 702 | 566 | |
Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 453 | 335 | |
Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 249 | 232 | |
Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 110 | 82 | |
Other Current Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 1 | 5 | |
Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 109 | 78 | |
Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 467 | 942 | |
Other Noncurrent Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 378 | |
Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 467 | 564 | |
Level 1 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 1,467 | 1,260 | |
Total liabilities | 0 | 0 | |
Level 1 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 15 | 17 | |
Available-for-sale debt securities | 0 | 0 | |
Total short-term investments | 15 | 17 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 0 | 0 | |
Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Trading funds and securities | 1,452 | 1,243 | |
Total long-term investments | 1,453 | 1,243 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 0 | 0 | |
Level 1 [Member] | Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 0 | |
Level 1 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 0 | |
Level 2 [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 11,334 | 18,335 | |
Total liabilities | 577 | 1,024 | |
Level 2 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 4,739 | 1,583 | |
Available-for-sale debt securities | 5,027 | 15,091 | |
Total short-term investments | 9,766 | 16,674 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 412 | 574 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 79 | 97 | |
Level 2 [Member] | Other Current Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative assets | 334 | 477 | |
Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 430 | 491 | |
Trading funds and securities | 25 | 30 | |
Total long-term investments | 454 | 521 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 702 | 566 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 453 | 335 | |
Level 2 [Member] | Other Noncurrent Assets [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative assets | 249 | 232 | |
Level 2 [Member] | Other Current Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 110 | 82 | |
Level 2 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 1 | 5 | |
Level 2 [Member] | Other Current Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current derivative liabilities | 109 | 78 | |
Level 2 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 467 | 942 | |
Level 2 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Interest rate contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 0 | 378 | |
Level 2 [Member] | Other Noncurrent Liabilities [Member] | Recurring [Member] | Foreign exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Noncurrent derivative liabilities | 467 | 564 | |
Money market funds [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 4,727 | 1,571 | |
Money market funds [Member] | Level 1 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 0 | 0 | |
Money market funds [Member] | Level 2 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 4,727 | 1,571 | |
Equity [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 26 | 29 |
Equity [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 1,425 | 1,223 |
Equity [Member] | Level 1 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 15 | 17 |
Equity [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 1,400 | 1,193 |
Equity [Member] | Level 2 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 12 | 11 |
Equity [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | [2] | 25 | 30 |
Trading Securities [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 53 | 50 | |
Trading Securities [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 53 | 50 | |
Trading Securities [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 0 | 0 | |
Government and agency - non U.S. [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,059 | 9,703 | |
Government and agency - non U.S. [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,014 | 9,609 | |
Government and agency - non U.S. [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 45 | 94 | |
Government and agency - non U.S. [Member] | Level 1 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency - non U.S. [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Government and agency - non U.S. [Member] | Level 2 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,014 | 9,609 | |
Government and agency - non U.S. [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 45 | 94 | |
Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | [3] | 2,398 | 5,878 |
Corporate [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,013 | 5,482 | |
Corporate [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 385 | 397 | |
Corporate [Member] | Level 1 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate [Member] | Level 1 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Corporate [Member] | Level 2 [Member] | Short-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,013 | 5,482 | |
Corporate [Member] | Level 2 [Member] | Long-term Investments [Member] | Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 385 | $ 397 | |
[1] | Amounts may not add due to rounding. | ||
[2] | As of June 30, 2019 , short-term equity securities of $11 million and long-term equity securities of $24 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. As of December 31, 2018 , short-term equity securities of $11 million and long-term equity securities of $29 million are held in trust for benefits attributable to the former Pharmacia Savings Plus Plan. | ||
[3] | Primarily issued by a diverse group of corporations. |
Financial Instruments - Finan_2
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - Footnotes (Detail) - Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Footnotes to selected financial assets and liabilities: | ||
Short-term equity securities held in trust | $ 11 | $ 11 |
Long-term equity securities held in trust | $ 24 | $ 29 |
Financial Instruments - Finan_3
Financial Instruments - Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, excluding the current portion | $ 36,168 | $ 32,909 |
Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, excluding the current portion | 40,301 | 35,260 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, excluding the current portion | $ 40,301 | $ 35,260 |
Financial Instruments - Total S
Financial Instruments - Total Short-Term and Long-Term Investments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | |||
Equity securities | $ 4,753 | $ 1,600 | |
Available-for-sale debt securities | 5,027 | 15,091 | |
Held-to-maturity debt securities | 1,347 | 1,003 | |
Total Short-term investments | [1] | 11,128 | 17,694 |
Equity securities | 1,425 | 1,223 | |
Trading equity funds securities | 53 | 50 | |
Available-for-sale debt securities | 430 | 491 | |
Held-to-maturity debt securities | 47 | 59 | |
Private equity investments at cost, as adjusted, or equity method | 951 | 944 | |
Total Long-term investments | [1] | 2,905 | 2,767 |
Held-to-maturity cash equivalents | $ 163 | $ 199 | |
[1] | Amounts may not add due to rounding. |
Financial Instruments - Investm
Financial Instruments - Investments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Debt securities, amortized cost | $ 7,023 | $ 16,920 | |
Debt securities, gross unrealized gains | 10 | 8 | |
Debt securities, gross unrealized losses | (19) | (85) | |
Available-for-sale securities and held-to-maturity securities | 7,014 | 16,842 | |
Debt securities maturities, within 1 year, fair value | 6,537 | ||
Debt securities maturities, over 1 to 5 years, fair value | 437 | ||
Debt securities maturities, over 5 years, fair value | 40 | ||
Government and agency - non U.S. [Member] | |||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | |||
Available-for-sale debt securities, amortized cost | 3,056 | 9,754 | |
Available-for-sale debt securities, gross unrealized gains | 9 | 7 | |
Available-for-sale debt securities, gross unrealized losses | (7) | (58) | |
Available-for-sale debt securities, fair value | 3,059 | 9,703 | |
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale securities, debt maturities, within 1 year, fair value | 3,014 | ||
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | 45 | ||
Available-for-sale securities, debt maturities, over 5 years, fair value | 0 | ||
Available-for-sale debt securities, fair value | 3,059 | 9,703 | |
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Held-to-maturity securities, debt maturities, total | 865 | 592 | |
Held-to-maturity securities, gross unrealized gains | 0 | 0 | |
Held-to-maturity securities, gross unrealized losses | 0 | 0 | |
Held-to-maturity securities, fair value | 865 | 592 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 864 | ||
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 0 | ||
Held-to-maturity securities, debt maturities, over 5 years, fair value | 0 | ||
Held-to-maturity securities, debt maturities, total | 865 | 592 | |
Corporate [Member] | |||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | |||
Available-for-sale debt securities, amortized cost | [1] | 2,409 | 5,905 |
Available-for-sale debt securities, gross unrealized gains | [1] | 1 | 0 |
Available-for-sale debt securities, gross unrealized losses | [1] | (12) | (27) |
Available-for-sale debt securities, fair value | [1] | 2,398 | 5,878 |
Available-for-sale Securities, Debt Maturities [Abstract] | |||
Available-for-sale securities, debt maturities, within 1 year, fair value | [1] | 2,013 | |
Available-for-sale securities, debt maturities, over 1 to 5 years, fair value | [1] | 382 | |
Available-for-sale securities, debt maturities, over 5 years, fair value | [1] | 3 | |
Available-for-sale debt securities, fair value | [1] | 2,398 | 5,878 |
Time deposits and other [Member] | |||
Debt Securities, Held-to-maturity, Maturity [Abstract] | |||
Held-to-maturity securities, debt maturities, total | 693 | 668 | |
Held-to-maturity securities, gross unrealized gains | 0 | 0 | |
Held-to-maturity securities, gross unrealized losses | 0 | 0 | |
Held-to-maturity securities, fair value | 693 | 668 | |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | |||
Held-to-maturity securities, debt maturities, within 1 year, fair value | 646 | ||
Held-to-maturity securities, debt maturities, over 1 to 5 years, fair value | 10 | ||
Held-to-maturity securities, debt maturities, over 5 years, fair value | 37 | ||
Held-to-maturity securities, debt maturities, total | $ 693 | $ 668 | |
[1] | Primarily issued by a diverse group of corporations. |
Financial Instruments - Inves_2
Financial Instruments - Investments - Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Financial Instruments [Abstract] | |||||
Net gains recognized during the period on investments in equity securities | [1],[2] | $ (36) | $ (257) | $ (147) | $ (375) |
Less: Net gains recognized during the period on equity securities sold during the period | (6) | (27) | (10) | (46) | |
Net unrealized gains during the reporting period on equity securities still held at the reporting date | $ (31) | $ (230) | $ (137) | $ (328) | |
[1] | The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . | ||||
[2] | The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . |
Financial Instruments - Short-t
Financial Instruments - Short-term Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | |||
Commercial paper | $ 6,705 | $ 3,100 | |
Current portion of long-term debt, principal amount | 2,139 | 4,781 | |
Other short-term borrowings, principal amount | [1] | 1,691 | 966 |
Total short-term borrowings, principal amount | 10,535 | 8,847 | |
Net fair value adjustments related to hedging and purchase accounting | 0 | (5) | |
Net unamortized discounts, premiums and debt issuance costs | (29) | (11) | |
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted | [2] | $ 10,507 | $ 8,831 |
[1] | Other short-term borrowings primarily include cash collateral. For additional information, see Note 7E . | ||
[2] | Amounts may not add due to rounding. |
Financial Instruments - Long-Te
Financial Instruments - Long-Term Debt - New Issuances (Details) - Senior Notes [Member] - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 03, 2016 | |
Debt Instrument [Line Items] | |||
Principal | [1] | $ 5,000 | |
Weighted-average effective interest rate | 3.57% | ||
2.800% notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | [2] | $ 500 | |
Stated interest rate | 2.80% | ||
2.950% notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | [2] | $ 750 | |
Stated interest rate | 2.95% | ||
3.450% notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | [2] | $ 1,750 | |
Stated interest rate | 3.45% | ||
3.900% notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | [2] | $ 750 | |
Stated interest rate | 3.90% | ||
4.000% notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | [2] | $ 1,250 | |
Stated interest rate | 4.00% | ||
[1] | The weighted-average effective interest rate for the notes at issuance was 3.57% . | ||
[2] | Fixed rate notes may be redeemed by us at any time, in whole, or in part, at varying redemption prices plus accrued and unpaid interest. |
Financial Instruments - Long-_2
Financial Instruments - Long-Term Debt Narrative (Details) $ in Millions, € in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | Jan. 31, 2019EUR (€) | ||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | [1] | $ 0 | $ 0 | $ 138 | $ 3 | ||
5.75% notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 138 | ||||||
Senior Notes [Member] | 5.75% notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase amount | $ 1,300 | € 1.1 | |||||
Stated interest rate | 5.75% | 5.75% | |||||
Redemption value | $ 1,500 | € 1.3 | |||||
[1] | In the first six months of 2019 , represents net losses due to the early retirement of debt in the first quarter of 2019, inclusive of the related termination of cross-currency swaps. |
Financial Instruments - Long-_3
Financial Instruments - Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Net fair value adjustments related to hedging and purchase accounting | $ 0 | $ (5) | |
Net unamortized discounts, premiums and debt issuance costs | (29) | (11) | |
Total long-term debt, carried at historical proceeds, as adjusted | [1] | 36,168 | 32,909 |
Current portion of long-term debt, carried at historical proceeds, as adjusted | [1] | 2,139 | 4,776 |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, principal amount | 35,082 | 32,558 | |
Net fair value adjustments related to hedging and purchase accounting | 1,264 | 479 | |
Net unamortized discounts, premiums and debt issuance costs | (185) | (136) | |
Other long-term debt | 6 | 7 | |
Total long-term debt, carried at historical proceeds, as adjusted | 36,168 | 32,909 | |
Current portion of long-term debt, carried at historical proceeds, as adjusted | $ 2,139 | $ 4,776 | |
[1] | Amounts may not add due to rounding. |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Financial Instruments and Related Notional Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Asset | $ 1,114 | $ 1,140 | |
Liability | 577 | 1,024 | |
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Asset | 1,015 | 1,085 | |
Liability | 520 | 968 | |
Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | 18,012 | 22,984 |
Asset | [1] | 483 | 654 |
Liability | [1] | 519 | 586 |
Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 8,812 | 11,145 | |
Asset | 531 | 432 | |
Liability | 1 | 383 | |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | 16,615 | 15,154 | |
Asset | 99 | 55 | |
Liability | 58 | 55 | |
Inventory sales [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||
Derivative [Line Items] | |||
Notional | [1] | $ 6,700 | $ 5,800 |
[1] | The notional amount of outstanding foreign currency forward-exchange contracts hedging our intercompany forecasted inventory sales was $6.7 billion as of June 30, 2019 and $5.8 billion as of December 31, 2018. |
Financial Instruments - Derivat
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
OID [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | $ (4) | $ 62 | $ (124) | $ 6 |
Not Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | (4) | 61 | (124) | 6 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1],[2] | 0 | 0 | 0 | 0 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | [1] | 0 | 0 | 0 | 0 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | 0 | 12 | 0 | 4 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Interest rate contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | 483 | (121) | 813 | (520) |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Interest rate contracts, hedged item gain/(loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | (483) | 121 | (813) | 520 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts, hedged item gain (loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | 0 | (12) | 0 | (4) |
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | 0 | 0 | 0 | 0 |
The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness | [1] | 0 | 0 | 0 | 0 |
Net Investment Hedging, Nonderivative Instruments [Member] | OID [Member] | Foreign currency short-term borrowings [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1],[3] | 0 | 0 | 0 | 0 |
Net Investment Hedging, Nonderivative Instruments [Member] | OID [Member] | Foreign currency long-term debt [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1],[3] | 0 | 0 | 0 | 0 |
Other Derivative Instruments [Member] | OID [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OID | [1] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | (216) | 577 | 188 | 325 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | [1],[4] | 28 | 20 | 84 | 48 |
Amount of Gains/(Losses) Recognized in OCI | [1],[2],[4] | (204) | 107 | 6 | (36) |
Amount of Gains/(Losses) Recognized in OCI [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest rate contracts, hedged item gain/(loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts, hedged item gain (loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness | [1],[4] | 52 | 25 | 93 | 27 |
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | (48) | 153 | (25) | 148 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Foreign currency short-term borrowings [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[3],[4] | (16) | 85 | 19 | 43 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | Foreign currency long-term debt [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[3],[4] | (27) | 186 | 11 | 94 |
Amount of Gains/(Losses) Recognized in OCI [Member] | Other Derivative Instruments [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Recognized in OCI | [1],[4] | 0 | 1 | 1 | 1 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | OID [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 111 | (289) | 398 | (328) |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Not Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | [1],[4] | 32 | 20 | 86 | 48 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[2],[4] | 48 | (330) | 257 | (402) |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Interest rate contracts [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Interest rate contracts, hedged item gain/(loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts, hedged item gain (loss) [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | OID [Member] | Foreign exchange contracts [Member] | |||||
Derivative [Line Items] | |||||
The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness | [1],[4] | 31 | 21 | 55 | 26 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | OID [Member] | Foreign currency short-term borrowings [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[3],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Net Investment Hedging, Nonderivative Instruments [Member] | OID [Member] | Foreign currency long-term debt [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[3],[4] | 0 | 0 | 0 | 0 |
Amount of Gains/(Losses) Reclassified from OCI into OID and COS [Member] | Other Derivative Instruments [Member] | OID [Member] | |||||
Derivative [Line Items] | |||||
Amount of Gains/(Losses) Reclassified from OCI into OID and COS | [1],[4] | $ 0 | $ 1 | $ 0 | $ 1 |
[1] | 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 . | ||||
[2] | Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax gain of $155 million within the next 12 months into Cost of sales. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $1.8 billion U.K. pound debt maturing in 2043. | ||||
[3] | Short-term borrowings include foreign currency short-term borrowings with carrying values of $1.1 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. Long-term debt includes foreign currency long-term borrowings with carrying values of $2.0 billion as of June 30, 2019 , which are used as hedging instruments in net investment hedges. The following table provides the total amount of each income and expense line in which the results of fair value or cash flow hedges are recorded: Three Months Ended Six Months Ended (MILLIONS OF DOLLARS) June 30, July 1, June 30 July 1, Cost of sales $ 2,576 $ 2,916 $ 5,009 $ 5,479 Other (income)/deductions—net 126 (551 ) 218 (728 ) | ||||
[4] | For derivative financial instruments in cash flow hedge relationships, the gains and losses are included in Other comprehensive income–– Unrealized holding gains/(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––Foreign currency translation adjustments, net. |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Financial Instruments and Hedging Activities - Footnotes (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Pre-tax gain expected to be reclassified within the next 12 months | $ 155 | ||
Short-term debt | [1] | 10,507 | $ 8,831 |
Unsecured Debt [Member] | |||
Derivative [Line Items] | |||
Long-term debt | 1,800 | ||
Foreign currency short-term borrowings [Member] | |||
Derivative [Line Items] | |||
Short-term debt | 1,100 | ||
Foreign currency long-term debt [Member] | |||
Derivative [Line Items] | |||
Long-term debt | $ 2,000 | ||
[1] | Amounts may not add due to rounding. |
Financial Instruments - Fair _2
Financial Instruments - Fair Value And Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Financial Instruments [Abstract] | |||||
Cost of sales | [1],[2] | $ 2,576 | $ 2,916 | $ 5,009 | $ 5,479 |
Other (income)/deductions––net | [2] | $ 126 | $ (551) | $ 218 | $ (728) |
[1] | Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets. | ||||
[2] | Amounts may not add due to rounding. |
Financial Instruments - Cumulat
Financial Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Long-term investments [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Assets | [1] | $ 45 | $ 45 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Asset | (1) | (1) | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Asset | 0 | 0 | |
Short-term borrowings, including current portion of long-term debt [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | 0 | 1,499 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | 0 | (5) | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | 0 | 0 | |
Long-term debt [Member] | |||
Derivative [Line Items] | |||
Carrying Amount of Actively Hedged Liabilities | [1] | 9,321 | 9,952 |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Active Hedging Relationships, Liability | 452 | (45) | |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount, Discontinued Hedging Relationships, Liability | $ 435 | $ 129 | |
[1] | Carrying amounts exclude the cumulative amount of fair value hedging adjustments. |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) |
Financial Instruments [Abstract] | |
Derivatives in a net liability position | $ 279 |
Collateral posted | 283 |
Cash collateral received | $ 1,600 |
Financial Instruments - Credit
Financial Instruments - Credit Risk (Details) $ in Billions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Bank sector [Member] | |
Concentration Risk [Line Items] | |
Maximum exposure, amount | $ 2 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 2,494 | $ 2,262 | |
Work-in-process | 5,249 | 4,701 | |
Raw materials and supplies | 490 | 546 | |
Inventories | [1],[2] | 8,233 | 7,508 |
Noncurrent inventories not included above | [3] | $ 646 | $ 618 |
[1] | The change from December 31, 2018 reflects increases for certain products to meet targeted levels in the normal course of business, including inventory build for supply recovery and market demand, partially offset by a decrease due to foreign exchange. | ||
[2] | Amounts may not add due to rounding. | ||
[3] | Included in Other noncurrent assets . There are no recoverability issues associated with these amounts. |
Identifiable Intangible Asset_3
Identifiable Intangible Assets and Goodwill - Finite-lived and Indefinite-lived Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 3,954 | $ 4,165 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 91,903 | 91,788 | |
Finite-lived intangible assets, accumulated amortization | [1] | (62,833) | (60,743) |
Finite-lived intangible assets, net | 29,070 | 31,045 | |
Intangible assets, gross carrying amount | [1] | 95,857 | 95,954 |
Finite-lived intangible assets, accumulated amortization | [1] | (62,833) | (60,743) |
Identifiable Intangible Assets, less Accumulated Amortization | [1],[2] | 33,024 | 35,211 |
Brands [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 1,994 | 1,994 | |
In Process Research and Development [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 1,961 | 2,171 | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 89,540 | 89,430 | |
Finite-lived intangible assets, accumulated amortization | (60,949) | (58,895) | |
Finite-lived intangible assets, net | 28,590 | 30,535 | |
Finite-lived intangible assets, accumulated amortization | (60,949) | (58,895) | |
Brands [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 923 | 923 | |
Finite-lived intangible assets, accumulated amortization | (725) | (708) | |
Finite-lived intangible assets, net | 198 | 215 | |
Finite-lived intangible assets, accumulated amortization | (725) | (708) | |
License Agreements and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 1,440 | 1,436 | |
Finite-lived intangible assets, accumulated amortization | (1,159) | (1,140) | |
Finite-lived intangible assets, net | 281 | 296 | |
Finite-lived intangible assets, accumulated amortization | $ (1,159) | $ (1,140) | |
[1] | The decrease in I dentifiable intangible assets, less accumulated amortization , is primarily due to amortization and intangible asset impairment charges, partially offset by additions for the period. See Note 4 for additional information on intangible asset impairments. | ||
[2] | Amounts may not add due to rounding. |
Identifiable Intangible Asset_4
Identifiable Intangible Assets and Goodwill - Finite-lived Intangible Assets Percentage of Total Intangibles (Details) | Jun. 30, 2019 |
Operating Segments [Member] | Developed Technology Rights [Member] | Biopharma [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 99.00% |
Operating Segments [Member] | Developed Technology Rights [Member] | Upjohn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 1.00% |
Operating Segments [Member] | Brands [Member] | Biopharma [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 100.00% |
Operating Segments [Member] | Brands [Member] | Upjohn [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% |
Pfizer's Worldwide Research, Development And Medical [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, Development And Medical [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 Asset_5
Identifiable Intangible Assets and Goodwill - Indefinite-lived Intangible Assets Percentage of Total Intangibles (Details) | Jun. 30, 2019 |
Biopharma [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 42.00% |
Biopharma [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 | 86.00% |
Upjohn [Member] | Operating Segments [Member] | Brands [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Percentage of total identifiable intangible assets, less accumulated amortization | 58.00% |
Upjohn [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 | 0.00% |
Pfizer's Worldwide Research, Development And Medical [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, Development And Medical [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 | 14.00% |
Identifiable Intangible Asset_6
Identifiable Intangible Assets and Goodwill - Narrative (Detail) $ in Billions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($)Operating_Segment | Jul. 01, 2018USD ($) | Dec. 31, 2018Operating_Segment | |
Finite-Lived Intangible Assets [Line Items] | |||||
Number of business segments | Operating_Segment | 3 | 2 | |||
Finite-Lived Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense for finite-lived intangible assets | $ | $ 1.2 | $ 1.2 | $ 2.4 | $ 2.4 |
Identifiable Intangible Asset_7
Identifiable Intangible Assets and Goodwill - Goodwill (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | $ 53,411 | [1] |
Other | (59) | [2] |
Balance, June 30, 2019 | 53,352 | [1] |
Operating Segments [Member] | Biopharma [Member] | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 42,927 | |
Other | (47) | [2] |
Balance, June 30, 2019 | 42,880 | |
Operating Segments [Member] | Upjohn [Member] | ||
Goodwill [Roll Forward] | ||
Balance, December 31, 2018 | 10,484 | |
Other | (12) | [2] |
Balance, June 30, 2019 | $ 10,472 | |
[1] | Amounts may not add due to rounding. | |
[2] | Primarily reflects the impact of foreign exchange. |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans - Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 157 | 150 | 315 | 301 |
Expected return on plan assets | (223) | (261) | (445) | (524) |
Amortization of: | ||||
Actuarial losses | 37 | 30 | 74 | 60 |
Prior service costs/(credits) | (1) | 0 | (2) | 1 |
Curtailments | 0 | 7 | 0 | 9 |
Settlements | 2 | 25 | 2 | 45 |
Special termination benefits | 1 | 0 | 1 | 0 |
Defined benefit plan, net periodic benefit cost | (27) | (49) | (55) | (107) |
Pension Plan [Member] | International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 31 | 34 | 63 | 71 |
Interest cost | 54 | 55 | 109 | 109 |
Expected return on plan assets | (80) | (93) | (160) | (185) |
Amortization of: | ||||
Actuarial losses | 20 | 26 | 41 | 52 |
Prior service costs/(credits) | (1) | (1) | (2) | (2) |
Curtailments | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 | 0 |
Defined benefit plan, net periodic benefit cost | 25 | 21 | 51 | 44 |
Supplemental Employee Retirement Plan [Member] | U.S. [Member] | Non-Qualified [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 12 | 14 | 25 | 26 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Actuarial losses | 2 | 3 | 5 | 7 |
Prior service costs/(credits) | 0 | 0 | 0 | 0 |
Curtailments | 0 | 0 | 0 | 0 |
Settlements | 0 | 5 | 0 | 21 |
Special termination benefits | 3 | 0 | 9 | 0 |
Defined benefit plan, net periodic benefit cost | 17 | 21 | 37 | 55 |
Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 9 | 10 | 19 | 20 |
Interest cost | 19 | 18 | 38 | 36 |
Expected return on plan assets | (8) | (9) | (16) | (18) |
Amortization of: | ||||
Actuarial losses | 1 | 2 | 2 | 4 |
Prior service costs/(credits) | (45) | (45) | (89) | (90) |
Curtailments | 0 | (7) | 0 | (14) |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 1 | 0 | 1 | 0 |
Defined benefit plan, net periodic benefit cost | $ (23) | $ (32) | $ (46) | $ (63) |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Pension Plan [Member] | U.S. [Member] | Qualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions from our general assets for the six months ended June 30, 2019 | $ 5 | |
Expected contributions from our general assets during 2019 | 11 | [1] |
Pension Plan [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions from our general assets for the six months ended June 30, 2019 | 130 | |
Expected contributions from our general assets during 2019 | 191 | [1] |
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 June 30, 2019 | 99 | |
Expected contributions from our general assets during 2019 | 197 | [1] |
Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions from our general assets for the six months ended June 30, 2019 | 67 | |
Expected contributions from our general assets during 2019 | $ 147 | [1] |
[1] | Contributions expected to be made for 2019 are inclusive of amounts contributed during the six months ended June 30, 2019 . The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings Per Common Share Att_3
Earnings Per Common Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
EPS Numerator––Basic | |||||
Income from continuing operations | [1] | $ 5,056 | $ 3,879 | $ 8,945 | $ 7,450 |
Less: Net income attributable to noncontrolling interests | 10 | 7 | 15 | 16 | |
Income from continuing operations attributable to Pfizer Inc. | 5,046 | 3,872 | 8,929 | 7,434 | |
Less: Preferred stock dividends––net of tax | 0 | 0 | 0 | 1 | |
Income from continuing operations attributable to Pfizer Inc. common shareholders | 5,045 | 3,871 | 8,929 | 7,433 | |
Discontinued operations––net of tax | [1] | 0 | 0 | 0 | (1) |
Net income attributable to Pfizer Inc. common shareholders | 5,045 | 3,871 | 8,929 | 7,432 | |
EPS Numerator––Diluted | |||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | 5,046 | 3,872 | 8,929 | 7,434 | |
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 0 | 0 | 0 | (1) | |
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ 5,046 | $ 3,872 | $ 8,929 | $ 7,432 | |
EPS Denominator | |||||
Weighted-average number of common shares outstanding––Basic (shares) | [1] | 5,562 | 5,866 | 5,598 | 5,911 |
Common-share equivalents: stock options, stock issuable under employee compensation plans, convertible preferred stock and accelerated share repurchase agreements (shares) | 110 | 86 | 112 | 93 | |
Weighted-average number of common shares outstanding––Diluted (shares) | [1] | 5,672 | 5,952 | 5,711 | 6,004 |
Cash dividends declared per share (in dollars per share) | $ 0.36 | $ 0.34 | $ 0.72 | $ 0.68 | |
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) | [2] | 1 | 3 | 2 | 2 |
[1] | Amounts may not add due to rounding. | ||||
[2] | 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. |
Contingencies and Certain Com_2
Contingencies and Certain Commitments (Actions In Which We Are The Plaintiff) (Details) | 1 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2019Patents | Jun. 30, 2018Patents | Feb. 28, 2018Patents | Jan. 31, 2018Patents | Dec. 31, 2017Patents | Oct. 31, 2017Patents | Sep. 30, 2017Patents | Mar. 31, 2017Patents | Feb. 28, 2017Patents | Aug. 31, 2016Patents | Jun. 30, 2015Patents | 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 Amneal Pharmaceuticals LLC [Member] | Settled Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents infringed upon | 1 | |||||||||||
Number of patents not infringed upon | 3 | |||||||||||
Precedex Premix [Member] | Hospira Versus Par [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents not infringed upon | 4 | |||||||||||
Precedex Premix [Member] | Hospira Versus Gland [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 4 | |||||||||||
Number of patents not infringed upon | 6 | |||||||||||
Precedex Premix [Member] | Hospira Versus Hengrui [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 4 | |||||||||||
Number of patents not infringed upon | 6 | |||||||||||
Precedex Premix [Member] | Hospira Versus Baxter [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents not infringed upon | 4 | |||||||||||
Number of patents due to expire in 2019 | 1 | |||||||||||
Number of patents due to expire in 2032 | 3 | |||||||||||
Patent Infringement [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents which the Patent Trial and Appeal Board refused to initiate proceedings | 2 | |||||||||||
Patent Infringement [Member] | Judicial Ruling [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents infringed upon | 1 | |||||||||||
Patent Infringement [Member] | Pfizer Versus Ajanta [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 2 | |||||||||||
Patent Infringement [Member] | Bosulif [Member] | Wyeth Versus Sun [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 2 | |||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus MicroLabs [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 3 | |||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Zydus [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 3 | |||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Prinston and Breckenridge [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 2 | |||||||||||
Patent Infringement [Member] | Xeljanz [Member] | Pfizer Versus Breckenridge [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 4 | |||||||||||
Number of patents due to expire in December 2020 | 3 | |||||||||||
Number or patents due to expire in December 2025 | 1 | |||||||||||
Patent Infringement [Member] | Eliquis [Member] | Pfizer and BMS Versus Several Generic Manufacturers [Member] | Pending Litigation [Member] | ||||||||||||
Gain Contingencies [Line Items] | ||||||||||||
Number of patents allegedly infringed upon | 3 | |||||||||||
Number of defendants | Defendant | 25 |
Contingencies and Certain Com_3
Contingencies and Certain Commitments (Actions In Which We Are The Defendant) (Detail) £ in Millions | 1 Months Ended | ||||||
Oct. 31, 2018manufacturer | Sep. 30, 2018lagoon | Nov. 30, 2017class_action | Mar. 31, 2015Patents | Mar. 31, 2013lagoon | Jun. 30, 2019Claim | Dec. 31, 2016GBP (£) | |
Loss Contingencies [Line Items] | |||||||
Number of class actions filed | class_action | 2 | ||||||
Inflectra [Member] | Janssen and New York University Versus Hospira, Celltrion Healthcare and Celltrion Inc. [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of patents allegedly infringed upon | 6 | ||||||
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 | ||||||
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 allegedly infringed upon | 2 | ||||||
Docetaxel [Member] | Pfizer And Various Other Manufacturers Versus Mississippi Attorney General [Member] | Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of defendants other than main defendant | manufacturer | 8 | ||||||
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 | 46,400 | ||||||
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 | 2 | |||||
Violation of Antitrust Laws [Member] | Phenytoin Sodium Capsules [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Imposed fine | £ | £ 84.2 |
Contingencies and Certain Com_4
Contingencies and Certain Commitments (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Billions | Aug. 05, 2019 | Feb. 12, 2019 | Feb. 07, 2019 | Jun. 30, 2019 |
Subsequent Event [Line Items] | ||||
Share repurchase agreement, amount | $ 6.8 | |||
Accelerated share repurchases, cash paid | $ 6.8 | |||
Shares repurchased (in shares) | 130 | |||
Accelerated share repurchases, shares repurchased during period, percentage of agreement amount | 80.00% | |||
Remaining authorized repurchase amount | $ 5.3 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares repurchased (in shares) | 33.5 | |||
Accelerated share repurchases, final price paid per share (in dollars per share) | $ 41.42 |
Segment, Geographic and Other_3
Segment, Geographic and Other Revenue Information - Narrative (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)Operating_Segment | Dec. 31, 2018USD ($)Operating_Segment | ||
Segment Reporting [Abstract] | |||
Number of business segments | Operating_Segment | 3 | 2 | |
Assets | $ | [1] | $ 156,199 | $ 159,422 |
[1] | Amounts may not add due to rounding. |
Segment, Geographic and Other_4
Segment, Geographic and Other Revenue Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 13,264 | $ 13,466 | $ 26,382 | $ 26,373 |
Earnings | [1],[2] | 4,141 | 4,527 | 8,463 | 8,654 |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,402 | 12,581 | 24,661 | 24,582 | |
Earnings | [2] | 8,044 | 8,181 | 16,206 | 16,172 |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | [2] | (1,193) | (1,119) | (2,306) | (2,307) |
Segment Reconciling Items [Member] | Purchase Accounting Adjustments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | [2] | (1,178) | (1,134) | (2,217) | (2,355) |
Segment Reconciling Items [Member] | Acquisition-Related Costs [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | [2] | 176 | (62) | 148 | (110) |
Segment Reconciling Items [Member] | Certain Significant Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Earnings | [2],[3] | (309) | 237 | (691) | 154 |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 862 | 886 | 1,721 | 1,791 | |
Earnings | [2] | (1,399) | (1,576) | (2,676) | (2,900) |
Biopharma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [4] | 9,595 | 9,434 | 18,779 | 18,315 |
Biopharma [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,595 | 9,434 | 18,779 | 18,315 | |
Earnings | [2] | 6,093 | 5,958 | 11,981 | 11,781 |
Upjohn [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,807 | 3,147 | 5,882 | 6,267 | |
Earnings | [2] | $ 1,951 | $ 2,222 | $ 4,225 | $ 4,391 |
[1] | Amounts may not add due to rounding. | ||||
[2] | Income from continuing operations before provision/(benefit) for taxes on income . Biopharma’s earnings include d ividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018 , and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4. | ||||
[3] | 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 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million , (ii) charges for certain legal matters of $15 million , (iii) certain asset impairment charges of $10 million , (iv) charges for business and legal entity alignment of $141 million , (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million . For additional information, see Note 3 and Note 4. For Earnings in the second quarter of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million , (ii) a net credit for certain legal matters of $88 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $1 million , (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4 . For Earnings in the first six months of 2019 , certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million , (ii) charges for certain legal matters of $9 million , (iii) certain asset impairment charges of $149 million , (iv) charges for business and legal entity alignment of $264 million , (v) net gains recognized during the period on investments in equity securities of $136 million , (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million . For additional information, see Note 3 and Note 4. For Earnings in the first six months of 2018 , certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million , (ii) net credits for certain legal matters of $107 million , (iii) certain asset impairment charges of $31 million , (iv) charges for business and legal entity alignment of $4 million , (v) net gains recognized during the period on investments in equity securities of $375 million , (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million , which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. For additional information, see Note 3 and Note 4 . | ||||
[4] | The Pfizer Biopharmaceuticals Group encompasses Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology and Rare Disease. The new Hospital business unit commercializes our global portfolio of sterile injectable and anti-infective medicines, and also includes Pfizer CentreOne (f) . |
Segment, Geographic and Other_5
Segment, Geographic and Other Revenue Information - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Income (charges) for certain legal matters | [1] | $ (15) | $ 88 | $ (19) | $ 107 |
Business and legal entity alignment costs | [2] | 137 | 1 | 256 | 4 |
Gains related to equity securities | [3],[4] | 36 | 257 | 147 | 375 |
Loss on extinguishment of debt | [5] | 0 | 0 | 138 | 3 |
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cost reduction and productivity initiatives excluding acquisition related costs | 113 | 42 | 170 | 93 | |
Income (charges) for certain legal matters | [1] | (15) | 88 | (9) | 107 |
Asset impairment charges | 10 | 31 | 149 | 31 | |
Business and legal entity alignment costs | 141 | 1 | 264 | 4 | |
Gains related to equity securities | 25 | 257 | 136 | 375 | |
Other charges | 56 | 35 | 97 | 197 | |
Special one-time bonus paid to all non-executive Pfizer colleagues | 119 | ||||
ViiV Healthcare Limited [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Dividend income | $ 76 | 76 | $ 140 | 135 | |
Allogene [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-cash pre-tax gain on contribution of assets | 50 | 50 | |||
Allogene [Member] | Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Non-cash pre-tax gain on contribution of assets | $ 50 | ||||
Innovative Health Segment [Member] | ViiV Healthcare Limited [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Dividend income | $ 76 | ||||
[1] | In the second quarter and first six months of 2018, primarily represented the reversal of a legal accrual where a loss was no longer deemed probable. | ||||
[2] | In the second quarter and first six months of 2019, represents incremental costs associated with the design, planning and implementation of our new organizational structure, effective in the beginning of 2019, and primarily includes consulting, legal, tax and advisory services. In the second quarter and first six months of 2018, represents expenses for changes to our infrastructure to align our commercial operations that existed through December 31, 2018, 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. | ||||
[3] | The second quarter of 2018 included gains of $142 million and the first six months of 2018 included gains of $203 million related to our investment in ICU Medical stock. For additional information, see Note 7B . | ||||
[4] | The net gains on investments in equity securities are reported in Other (income)/deductions –– net. For additional information, see Note 4 . | ||||
[5] | In the first six months of 2019 , represents net losses due to the early retirement of debt in the first quarter of 2019, inclusive of the related termination of cross-currency swaps. |
Segment, Geographic and Other_6
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 13,264 | $ 13,466 | $ 26,382 | $ 26,373 |
Percentage Change In Revenue | (2.00%) | 0.00% | |||
U.S. [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 6,335 | 6,225 | $ 12,510 | 12,500 | |
Percentage Change In Revenue | 2.00% | 0.00% | |||
Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [2] | $ 2,228 | 2,334 | $ 4,315 | 4,426 |
Percentage Change In Revenue | [2] | (5.00%) | (3.00%) | ||
Developed Rest Of World [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [3] | $ 1,639 | 1,694 | $ 3,174 | 3,155 |
Percentage Change In Revenue | [3] | (3.00%) | 1.00% | ||
Emerging Markets [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [4] | $ 3,062 | $ 3,214 | $ 6,383 | $ 6,292 |
Percentage Change In Revenue | [4] | (5.00%) | 1.00% | ||
[1] | Amounts may not add due to rounding. | ||||
[2] | Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion in the second quarter of 2019 and $1.9 billion in the second quarter of 2018 , and were $3.5 billion in the first six months of 2019 and $3.6 billion in the first six months of 2018 . | ||||
[3] | Developed Rest of World region includes the following markets: Japan, Canada, South Korea, Australia and New Zealand. | ||||
[4] | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Africa, Central Europe and Turkey. |
Segment, Geographic and Other_7
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area - Footnotes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [1] | $ 13,264 | $ 13,466 | $ 26,382 | $ 26,373 |
Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | [2] | 2,228 | 2,334 | 4,315 | 4,426 |
Euro Member Countries, Euro [Member] | Developed Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,800 | $ 1,900 | $ 3,500 | $ 3,600 | |
[1] | Amounts may not add due to rounding. | ||||
[2] | Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion in the second quarter of 2019 and $1.9 billion in the second quarter of 2018 , and were $3.5 billion in the first six months of 2019 and $3.6 billion in the first six months of 2018 . |
Segment, Geographic and Other_8
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Revenue from External Customer [Line Items] | |||||
Revenues | [1] | $ 13,264 | $ 13,466 | $ 26,382 | $ 26,373 |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 13,264 | 13,466 | 26,382 | 26,373 | |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Alliance revenues [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,187 | 987 | 2,277 | 1,842 | |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Biosimilars [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2] | 217 | 188 | 396 | 361 |
Biopharma, Upjohn And Consumer Healthcare Segments [Member] | Sterile Injectable Pharmaceuticals [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [3] | 1,218 | 1,329 | 2,455 | 2,688 |
Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [4] | 9,595 | 9,434 | 18,779 | 18,315 |
Internal Medicine [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [5] | 2,330 | 2,276 | 4,546 | 4,347 |
Internal Medicine [Member] | Biopharma [Member] | Eliquis [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,085 | 889 | 2,096 | 1,654 | |
Internal Medicine [Member] | Biopharma [Member] | Chantix / Champix [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 276 | 277 | 549 | 528 | |
Internal Medicine [Member] | Biopharma [Member] | Premarin family [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 193 | 210 | 361 | 401 | |
Internal Medicine [Member] | Biopharma [Member] | B M P 2 [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 79 | 80 | 145 | 153 | |
Internal Medicine [Member] | Biopharma [Member] | Toviaz [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 65 | 70 | 125 | 130 | |
Internal Medicine [Member] | Biopharma [Member] | All Other Internal Medicine [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 631 | 750 | 1,270 | 1,480 | |
Oncology [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [6] | 2,236 | 1,888 | 4,198 | 3,648 |
Oncology [Member] | Biopharma [Member] | Ibrance [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,261 | 1,027 | 2,394 | 1,960 | |
Oncology [Member] | Biopharma [Member] | Sutent [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 248 | 275 | 480 | 537 | |
Oncology [Member] | Biopharma [Member] | Xtandi Alliance [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 201 | 171 | 369 | 330 | |
Oncology [Member] | Biopharma [Member] | Xalkori [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 133 | 137 | 255 | 290 | |
Oncology [Member] | Biopharma [Member] | Bosulif [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 97 | 77 | 177 | 138 | |
Oncology [Member] | Biopharma [Member] | Inlyta [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 104 | 81 | 177 | 155 | |
Oncology [Member] | Biopharma [Member] | Retacrit [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2] | 51 | 18 | 82 | 36 |
Oncology [Member] | Biopharma [Member] | All other Oncology [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 140 | 100 | 262 | 201 | |
Hospital [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [7] | 1,913 | 2,077 | 3,800 | 4,103 |
Hospital [Member] | Biopharma [Member] | Other Anti-infectives [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 367 | 362 | 721 | 755 | |
Hospital [Member] | Biopharma [Member] | Other Hospital Products [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [7] | 623 | 748 | 1,254 | 1,455 |
Hospital [Member] | Biopharma [Member] | CentreOne [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [8] | 204 | 209 | 380 | 381 |
Hospital [Member] | Biopharma [Member] | Zithromax [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [9] | 73 | 81 | 177 | 182 |
Hospital [Member] | Biopharma [Member] | EpiPen [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 80 | 95 | 146 | 148 | |
Hospital [Member] | Biopharma [Member] | Sulperazon [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 165 | 150 | 342 | 319 | |
Hospital [Member] | Biopharma [Member] | Medrol [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [9] | 120 | 123 | 240 | 258 |
Hospital [Member] | Biopharma [Member] | Fragmin [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 63 | 74 | 123 | 145 | |
Hospital [Member] | Biopharma [Member] | Tazosyn / Zosyn [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 53 | 58 | 104 | 120 | |
Hospital [Member] | Biopharma [Member] | Vfend [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 94 | 110 | 178 | 207 | |
Hospital [Member] | Biopharma [Member] | Zyvox [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 71 | 66 | 134 | 134 | |
Vaccines [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,375 | 1,400 | 2,988 | 2,863 | |
Vaccines [Member] | Biopharma [Member] | Prevnar 13/Prevenar 13 [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,179 | 1,250 | 2,665 | 2,631 | |
Vaccines [Member] | Biopharma [Member] | FSME/IMMUN-TicoVac [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 95 | 73 | 133 | 105 | |
Vaccines [Member] | Biopharma [Member] | Nimenrix [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 58 | 30 | 107 | 49 | |
Vaccines [Member] | Biopharma [Member] | All other Vaccines [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 43 | 47 | 82 | 78 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [10] | 1,219 | 1,222 | 2,256 | 2,235 |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Enbrel (Outside the U.S. and Canada) [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 420 | 551 | 871 | 1,057 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Xeljanz [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 613 | 463 | 1,036 | 788 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Eucrisa [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 27 | 39 | 50 | 65 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | All Other Inflammation and Immunology Products [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 6 | 11 | 9 | 22 | |
Inflammation and Immunology (I&I) [Member] | Biopharma [Member] | Inflectra/Remsima [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [2],[10] | 153 | 158 | 291 | 303 |
Rare Disease [Member] | Biopharma [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 521 | 571 | 991 | 1,120 | |
Rare Disease [Member] | Biopharma [Member] | BeneFIX [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 121 | 141 | 247 | 288 | |
Rare Disease [Member] | Biopharma [Member] | Genotropin [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 125 | 140 | 232 | 272 | |
Rare Disease [Member] | Biopharma [Member] | ReFacto AF/ Xyntha [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 108 | 141 | 214 | 271 | |
Rare Disease [Member] | Biopharma [Member] | Somavert [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 68 | 68 | 128 | 131 | |
Rare Disease [Member] | Biopharma [Member] | Vyndaqel [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 63 | 38 | 104 | 72 | |
Rare Disease [Member] | Biopharma [Member] | All Other Rare Disease [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 35 | 43 | 66 | 86 | |
Upjohn [Member] | Upjohn [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [5],[11] | 2,807 | 3,147 | 5,882 | 6,267 |
Upjohn [Member] | Upjohn [Member] | Lyrica [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 1,175 | 1,223 | 2,362 | 2,436 | |
Upjohn [Member] | Upjohn [Member] | Lipitor [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 407 | 521 | 1,029 | 1,032 | |
Upjohn [Member] | Upjohn [Member] | Norvasc [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 216 | 273 | 516 | 529 | |
Upjohn [Member] | Upjohn [Member] | Xalatan/Xalacom [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 72 | 85 | 133 | 157 | |
Upjohn [Member] | Upjohn [Member] | Revatio [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 56 | 54 | 98 | 109 | |
Upjohn [Member] | Upjohn [Member] | Xanax [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 52 | 56 | 98 | 111 | |
Upjohn [Member] | Upjohn [Member] | Viagra [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 114 | 185 | 259 | 372 | |
Upjohn [Member] | Upjohn [Member] | Effexor [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 86 | 79 | 163 | 150 | |
Upjohn [Member] | Upjohn [Member] | Zoloft [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 73 | 77 | 143 | 151 | |
Upjohn [Member] | Upjohn [Member] | Other Legacy Established Products [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 382 | 433 | 735 | 914 | |
Upjohn [Member] | Upjohn [Member] | Celebrex [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | 174 | 161 | 347 | 306 | |
Consumer Healthcare [Member] | Consumer Healthcare [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenues | [12] | $ 862 | $ 886 | $ 1,721 | $ 1,791 |
[1] | Amounts may not add due to rounding. | ||||
[2] | Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima and Retacrit. | ||||
[3] | Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals. | ||||
[4] | The Pfizer Biopharmaceuticals Group encompasses Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology and Rare Disease. The new Hospital business unit commercializes our global portfolio of sterile injectable and anti-infective medicines, and also includes Pfizer CentreOne (f) . | ||||
[5] | We reclassified certain products from the LEP category, including Premarin family products, and certain other products from the legacy Peri-LOE category, including Pristiq, to the Internal Medicine category and reclassified Lyrica from the Internal Medicine category to the Upjohn business to conform 2018 product revenues to the current presentation. | ||||
[6] | We performed certain reclassifications in the All other Oncology category to conform 2018 product revenues to the current presentation. | ||||
[7] | Hospital is a new business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. We performed certain reclassifications, primarily from the legacy Sterile Injectables Pharmaceuticals (SIP) category (Sulperazon, Medrol, Fragmin, Tygacil, Zosyn/Tazocin and Precedex, among other products), the LEP category (Epipen and Zithromax), and the legacy Peri-LOE category (Vfend and Zyvox) to the Hospital category to conform 2018 product revenues to the current presentation. Hospital also includes Pfizer CentreOne (f) . All other Hospital primarily includes revenues from legacy SIP products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”. | ||||
[8] | 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 Inc. In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within legacy All Other LEP and legacy All Other SIP, are reported in emerging markets within Pfizer CentreOne. | ||||
[9] | 2018 revenues for Medrol and Zithromax may not agree to previously disclosed revenues because revenues for those products were previously split between LEP and the legacy SIP categories. All revenues for these products are currently reported in the Hospital category. | ||||
[10] | We reclassified Inflectra/Remsima from the legacy Biosimilars category to the Inflammation & Immunology category to conform 2018 product revenues to the current presentation. | ||||
[11] | Pfizer’s Upjohn business encompasses primarily off-patent branded and generic established medicines that includes 20 of our primarily off-patent solid oral dose legacy brands including Lyrica, Lipitor, Norvasc, Celebrex and Viagra, as well as certain generic medicines. | ||||
[12] | Pfizer’s Consumer Healthcare business is an over-the-counter medicines business, which on July 31, 2019 was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. For additional information, see Note 2 . |
Segment, Geographic and Other_9
Segment, Geographic and Other Revenue Information - Revenues By Products - Footnotes (Details) | 6 Months Ended |
Jun. 30, 2019brand | |
Upjohn [Member] | Upjohn [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of off-patent legacy brands | 20 |