

~~YES~~ X Yes	~~NO ___~~x	No	☐

Large Accelerated filer X x Accelerated filer ~~___~~☐ Non-accelerated filer ~~___~~☐ Smaller reporting company ~~___~~☐ Emerging growth company ~~___~~☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ~~___~~☐



~~YES ____~~Yes	NO X ☐	No	x

At November ~~6, 2017~~4, 2019, ~~5,960,707,317~~5,534,122,364 shares of the issuer’s voting common stock were outstanding.

Table of Contents



PART I. FINANCIAL INFORMATION	Page

Item 1.
Financial Statements

Condensed Consolidated Statements of Income for the three and nine months ended ~~October 1, 2017~~September 29, 2019 and ~~October 2, 2016~~ September 30, 2018	5

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended ~~October 1, 2017~~ September 29, 2019 and ~~October 2, 2016~~September 30, 2018	6

Condensed Consolidated Balance Sheets as of ~~October 1, 2017~~September 29, 2019 and December 31, ~~2016~~2018	7

Condensed Consolidated Statements of Equity for the three and nine months ended September 29, 2019 and September 30, 2018	8

Condensed Consolidated Statements of Cash Flows for the nine months ended ~~October 1, 2017~~September 29, 2019 and ~~October 2, 2016~~ September 30, 2018	810

Notes to Condensed Consolidated Financial Statements	912

Review Report of Independent Registered Public Accounting Firm	4552

Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations	4653

Item 3.
Quantitative and Qualitative Disclosures About Market Risk	~~106~~114

Item 4.
Controls and Procedures	~~106~~114

PART II. OTHER INFORMATION

Item 1.
Legal Proceedings	~~107~~115

Item 1A.
Risk Factors	~~107~~115

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds	~~109~~116

Item 3.
Defaults Upon Senior Securities	~~109~~116

Item 4.
Mine Safety Disclosures	~~109~~116

Item 5.
Other Information	~~109~~116

Item 6.
Exhibits	~~110~~117

Signature	~~111~~118

Unless the context requires otherwise, references to “Pfizer,” “the Company,” “we,” “us” or “our” in this Quarterly Report on Form 10-Q (defined below) refer to Pfizer Inc. and its subsidiaries. We also have used several other terms in this Quarterly Report on Form 10-Q, most of which are explained or defined below:

Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Net income before allocation to noncontrolling interests $ 2,858
$ 1,355
$ 9,066
$ 6,465

Foreign currency translation adjustments, net 878
417
1,352
998
Reclassification adjustments^(a)
(3 ) —
110
—
875
417
1,461
998
Unrealized holding losses on derivative financial instruments, net (50 ) (126 ) (149 ) (970 )
Reclassification adjustments for realized (gains)/losses^(b)
56
150
(393 ) 280
6
24
(542 ) (690 )
Unrealized holding gains on available-for-sale securities, net 384
261
698
740
Reclassification adjustments for realized gains^(b)
(278 ) (112 ) (181 ) (129 )
106
149
518
611
Benefit plans: actuarial losses, net (103 ) (82 ) (41 ) (101 )
Reclassification adjustments related to amortization^(c)
140
140
448
418
Reclassification adjustments related to settlements, net^(c)
38
28
89
76
Other (76 ) 69
(111 ) 51
(1 ) 155
384
444
Benefit plans: prior service (costs)/credits and other, net —
95
(2 ) 182
Reclassification adjustments related to amortization^(c)
(46 ) (45 ) (138 ) (127 )
Reclassification adjustments related to curtailments, net^(c)
(3 ) (8 ) (14 ) (14 )
Other 1
6
2
12
(48 ) 48
(151 ) 54
Other comprehensive income, before tax 938
793
1,669
1,417
Tax provision/(benefit) on other comprehensive income^(d)
(80 ) 116
(218 ) 111
Other comprehensive income before allocation to noncontrolling interests $ 1,018
$ 677
$ 1,888
$ 1,306

Comprehensive income before allocation to noncontrolling interests $ 3,876
$ 2,031
$ 10,953
$ 7,771
Less: Comprehensive income attributable to noncontrolling interests 19
—
48
24
Comprehensive income attributable to Pfizer Inc. $ 3,857
$ 2,032
$ 10,906
$ 7,747



	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Net income before allocation to noncontrolling interests	$	7,684		$	4,122		$	16,628		$	11,571

Foreign currency translation adjustments, net	(468		)	(567		)	(628		)	(507		)
Reclassification adjustments^(a)	268			(2		)	270			(22		)
	(200		)	(569		)	(358		)	(530		)
Unrealized holding gains on derivative financial instruments, net	150			222			241			236
Reclassification adjustments for (gains)/losses included in net income^(b)	(29		)	(235		)	(372		)	119
	122			(13		)	(131		)	355
Unrealized holding gains/(losses) on available-for-sale securities, net	15			149			48			(65		)
Reclassification adjustments for (gains)/losses included in net income^(b)	(7		)	(36		)	30			(67		)
Reclassification adjustments for unrealized gains included in Retained earnings^(c)	—			—			—			(462		)
	8			112			77			(595		)
Benefit plans: actuarial gains/(losses), net	(171		)	8			(175		)	114
Reclassification adjustments related to amortization	60			60			180			183
Reclassification adjustments related to settlements, net	38			42			40			108
Other	42			49			60			69
	(31		)	158			105			474
Benefit plans: prior service costs and other, net	—			—			(1		)	—
Reclassification adjustments related to amortization of prior service costs and other, net	(44		)	(46		)	(137		)	(137		)
Reclassification adjustments related to curtailments of prior service costs and other, net	(46		)	(4		)	(46		)	(18		)
Other	3			—			4			1
	(88		)	(50		)	(180		)	(154		)
Other comprehensive loss, before tax	(190		)	(361		)	(486		)	(449		)
Tax provision on other comprehensive loss	84			62			50			667
Other comprehensive loss before allocation to noncontrolling interests	$	(275	)	$	(422	)	$	(536	)	$	(1,116	)
Comprehensive income before allocation to noncontrolling interests	$	7,409		$	3,700		$	16,092		$	10,455
Less: Comprehensive income/(loss) attributable to noncontrolling interests	(6		)	—			8			5
Comprehensive income attributable to Pfizer Inc.	$	7,415		$	3,700		$	16,084		$	10,450



(MILLIONS OF DOLLARS)	September 29, 2019			December 31, 2018
	(Unaudited)
Assets
Cash and cash equivalents	$	2,785		$	1,139
Short-term investments	6,302			17,694
Trade accounts receivable, less allowance for doubtful accounts: 2019—$541; 2018—$541	9,439			8,025
Inventories	8,222			7,508
Current tax assets	3,730			3,374
Other current assets	2,954			2,461
Assets held for sale	29			9,725
Total current assets	33,459			49,926
Equity-method investments	15,999			181
Long-term investments	2,723			2,586
Property, plant and equipment, less accumulated depreciation: 2019—$16,728; 2018—$16,591	13,701			13,385
Identifiable intangible assets, less accumulated amortization	38,995			35,211
Goodwill	58,665			53,411
Noncurrent deferred tax assets and other noncurrent tax assets	1,984			1,924
Other noncurrent assets	4,920			2,799
Total assets	$	170,446		$	159,422

Liabilities and Equity
Short-term borrowings, including current portion of long-term debt: 2019—$2,431; 2018—$4,776	$	16,617		$	8,831
Trade accounts payable	3,942			4,674
Dividends payable	1,992			2,047
Income taxes payable	1,892			1,265
Accrued compensation and related items	2,369			2,397
Other current liabilities	10,160			10,753
Liabilities held for sale	—			1,890
Total current liabilities	36,974			31,858

Long-term debt	36,044			32,909
Pension benefit obligations, net	5,103			5,272
Postretirement benefit obligations, net	1,321			1,338
Noncurrent deferred tax liabilities	6,724			3,700
Other taxes payable	12,504			14,737
Other noncurrent liabilities	6,381			5,850
Total liabilities	105,051			95,664

Commitments and Contingencies

Preferred stock	18			19
Common stock	468			467
Additional paid-in capital	87,099			86,253
Treasury stock	(110,795		)	(101,610		)
Retained earnings	100,113			89,554
Accumulated other comprehensive loss	(11,801		)	(11,275		)
Total Pfizer Inc. shareholders’ equity	65,103			63,407
Equity attributable to noncontrolling interests	293			351
Total equity	65,396			63,758
Total liabilities and equity	$	170,446		$	159,422



	PFIZER INC. SHAREHOLDERS
	Preferred Stock					Common Stock						Treasury Stock
(MILLIONS, EXCEPT PREFERRED SHARES)	Shares		Stated Value			Shares	Par Value		Add’l Paid-In Capital			Shares		Cost			Retained Earnings			Accum. Other Comp. Loss			Share- holders’ Equity			Non-controlling interests			Total Equity
Balance, June 30, 2019	458		$	18		9,363	$	468	$	86,963		(3,801	)	$	(110,786	)	$	94,440		$	(11,535	)	$	59,568		$	357		$	59,924
Net income																	7,680						7,680			4			7,684
Other comprehensive income/(loss), net of tax																				(265		)	(265		)	(9		)	(275		)
Cash dividends declared:
Common stock																	(2,006		)				(2,006		)				(2,006		)
Preferred stock																	—						—						—
Noncontrolling interests																							—			2			2
Share-based payment transactions						3	—		136			—		(8		)							128						128
Purchases of common stock												(34	)	—									—						—
Preferred stock conversions and redemptions	(8	)	—						—			—		—									(1		)				(1		)
Other^(a)									—			—		—			—			—			—			(61		)	(61		)
Balance, September 29, 2019	449		$	18		9,366	$	468	$	87,099		(3,835	)	$	(110,795	)	$	100,113		$	(11,801	)	$	65,103		$	293		$	65,396

	PFIZER INC. SHAREHOLDERS
	Preferred Stock					Common Stock						Treasury Stock
(MILLIONS, EXCEPT PREFERRED SHARES)	Shares		Stated Value			Shares	Par Value		Add’l Paid-In Capital			Shares		Cost			Retained Earnings			Accum. Other Comp. Loss			Share- holders’ Equity			Non-controlling interests			Total Equity
Balance July 1, 2018	502		$	20		9,303	$	465	$	84,898		(3,438	)	$	(95,463	)	$	89,860		$	(10,003	)	$	69,778		$	346		$	70,124
Net income																	4,114						4,114			8			4,122
Other comprehensive income/(loss), net of tax																				(414		)	(414		)	(9		)	(422		)
Cash dividends declared:
Common stock																	(1,977		)				(1,977		)				(1,977		)
Preferred stock																	—						—						—
Noncontrolling interests																							—			—			—
Share-based payment transactions						23	1		930			—		(6		)							926						926
Purchases of common stock												(47	)	(1,105		)							(1,105		)				(1,105		)
Preferred stock conversions and redemptions	(14	)	(1		)				(1		)	—		—									(1		)				(1		)
Other									—			—					(2		)	—			(2		)	—			(2		)
Balance, September 30, 2018	488		$	20		9,326	$	466	$	85,828		(3,484	)	$	(96,574	)	$	91,995		$	(10,417	)	$	71,319		$	346		$	71,664



	Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018
Operating Activities
Net income before allocation to noncontrolling interests	$	16,628		$	11,571
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	4,626			4,743
Asset write-offs and impairments	224			88
TCJA impact^(a)	(319		)	(410		)
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed^(b)	(8,233		)	—
Deferred taxes from continuing operations^(c)	2,067			(974		)
Share-based compensation expense	448			682
Benefit plan contributions in excess of income	(429		)	(1,000		)
Other adjustments, net	(622		)	(1,170		)
Other changes in assets and liabilities, net of acquisitions and divestitures	(5,571		)	(2,441		)
Net cash provided by operating activities	8,819			11,089

Investing Activities
Purchases of property, plant and equipment	(1,504		)	(1,357		)
Purchases of short-term investments	(4,583		)	(7,364		)
Proceeds from redemptions/sales of short-term investments	7,766			12,752
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less	8,307			385
Purchases of long-term investments	(134		)	(1,503		)
Proceeds from redemptions/sales of long-term investments	116			2,174
Acquisition of business, net of cash acquired	(10,861		)	—
Acquisitions of intangible assets	(364		)	(47		)
Other investing activities, net^(b)	145			248
Net cash provided by/(used in) investing activities	(1,112		)	5,289

Financing Activities
Proceeds from short-term borrowings	11,582			1,945
Principal payments on short-term borrowings	(4,088		)	(4,239		)
Net proceeds from/(payments on) short-term borrowings with original maturities of three months or less	2,604			(973		)
Proceeds from issuance of long-term debt	4,942			4,974
Principal payments on long-term debt	(5,806		)	(3,104		)
Purchases of common stock	(8,865		)	(7,168		)
Cash dividends paid	(6,051		)	(6,015		)
Proceeds from exercise of stock options	303			1,099
Other financing activities, net	(667		)	(553		)
Net cash used in financing activities	(6,045		)	(14,034		)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents	(41		)	(116		)
Net increase in cash and cash equivalents and restricted cash and cash equivalents	1,620			2,227
Cash and cash equivalents and restricted cash and cash equivalents, beginning	1,225			1,431
Cash and cash equivalents and restricted cash and cash equivalents, end	$	2,846		$	3,658
- continued -




(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018
Supplemental Cash Flow Information
Non-cash transactions:
32% equity-method investment in GSK Consumer Healthcare JV in exchange for contributing Pfizer’s Consumer Healthcare business^(b)	$	15,711		$	—
Equity investment in Cerevel Therapeutics, Inc. in exchange for Pfizer’s portfolio of clinical and pre-clinical neuroscience assets⁽^d)	—			343
Equity investment in Allogene received in exchange for Pfizer's allogeneic CAR T developmental program assets^(d)	—			92
Cash paid (received) during the period for:
Income taxes	2,636			1,666
Interest paid	1,246			968
Interest rate hedges	(78		)	(104		)

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.

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 following table provides the components of Tax provision/(benefit) on other comprehensive income:
Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Foreign currency translation adjustments, net^(a)
$ (62 ) $ —
$ (192 ) $ (15 )
Unrealized holding losses on derivative financial instruments, net 28
—
30
(192 )
Reclassification adjustments for realized (gains)/losses (29 ) 32
(169 ) 81
(1 ) 32
(139 ) (112 )
Unrealized holding gains on available-for-sale securities, net 37
40
93
106
Reclassification adjustments for realized gains (49 ) (14 ) (45 ) (16 )
(12 ) 26
47
90
Benefit plans: actuarial losses, net (37 ) (31 ) (15 ) (39 )
Reclassification adjustments related to amortization 60
47
152
140
Reclassification adjustments related to settlements, net 22
10
30
27
Other (33 ) 14
(46 ) 5
11
40
121
133
Benefit plans: prior service (costs)/credits and other, net —
35
—
66
Reclassification adjustments related to amortization (17 ) (17 ) (50 ) (47 )
Reclassification adjustments related to curtailments, net (1 ) (3 ) (5 ) (5 )
Other 1
2
1
1
(17 ) 18
(55 ) 15
Tax provision/(benefit) on other comprehensive income $ (80 ) $ 116
$ (218 ) $ 111



The following table provides the components of Tax provision on other comprehensive loss:
	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Foreign currency translation adjustments, net^(a)	$	86		$	14		$	96		$	82
Unrealized holding gains on derivative financial instruments, net	31			35			37			39
Reclassification adjustments for (gains)/losses included in net income	(3		)	(28		)	(62		)	36
Reclassification adjustments of certain tax effects from AOCI to Retained earnings^(b)	—			—			—			1
	28			7			(24		)	77
Unrealized holding gains/(losses) on available-for-sale securities, net	2			20			6			(8		)
Reclassification adjustments for (gains)/losses included in net income	(1		)	(6		)	4			(8		)
Reclassification adjustments for tax on unrealized gains from AOCI to Retained earnings^(c)	—			—			—			(45		)
	1			14			10			(62		)
Benefit plans: actuarial gains/(losses), net	(41		)	2			(42		)	27
Reclassification adjustments related to amortization	23			15			41			43
Reclassification adjustments related to settlements, net	9			10			10			25
Reclassification adjustments of certain tax effects from AOCI to Retained earnings^(b)	—			—			—			637
Other	(1		)	11			2			18
	(10		)	38			12			750
Benefit plans: prior service costs and other, net	—			—			—			—
Reclassification adjustments related to amortization of prior service costs and other, net	(11		)	(11		)	(33		)	(33		)
Reclassification adjustments related to curtailments of prior service costs and other, net	(11		)	(1		)	(11		)	(4		)
Reclassification adjustments of certain tax effects from AOCI to Retained earnings^(b)	—			—			—			(144		)
Other	1			1			1			1
	(21		)	(11		)	(43		)	(179		)
Tax provision on other comprehensive loss	$	84		$	62		$	50		$	667

The following table provides additional information about certain of our financial assets and liabilities:
(MILLIONS OF DOLLARS) October 1,
2017
December 31,
2016
Selected financial assets measured at fair value on a recurring basis^(a)

Trading funds and securities^(b)
$ 347
$ 325
Available-for-sale debt securities^(c)
16,598
18,632
Money market funds 1,824
1,445
Available-for-sale equity securities^(c)
1,032
540
Derivative financial instruments in a receivable position^(d):

Interest rate swaps 630
625
Foreign currency swaps 92
79
Foreign currency forward-exchange contracts 110
551
20,631
22,198
Other selected financial assets

Held-to-maturity debt securities, carried at amortized cost^{(c), (e)}
1,464
1,242
Restricted stock and private equity securities, carried at cost or at equity-method^(e)
719
735
2,183
1,977
Total selected financial assets $ 22,815
$ 24,175
Selected financial liabilities measured at fair value on a recurring basis^(a)

Derivative financial instruments in a liability position^(f):

Interest rate swaps $ 154
$ 148
Foreign currency swaps 710
1,374
Foreign currency forward-exchange contracts 309
143
1,173
1,665
Other selected financial liabilities

Short-term borrowings:
Principal amount 9,460
10,674
Net fair value adjustments related to hedging and purchase accounting 2
24
Net unamortized discounts, premiums and debt issuance costs (15 ) (11 )
Total short-term borrowings, carried at historical proceeds, as adjusted^(e)
9,448
10,688
Long-term debt:
Principal amount 33,671
30,529
Net fair value adjustments related to hedging and purchase accounting 981
998
Net unamortized discounts, premiums and debt issuance costs (149 ) (130 )
Total long-term debt, carried at historical proceeds, as adjusted^(g)
34,503
31,398
43,951
42,085
Total selected financial liabilities $ 45,124
$ 43,750



The 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:
	September 29, 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 with readily determinable fair values:
Money market funds	$	1,035	$	—	$	1,035	$	1,571	$	—	$	1,571
Equity^(a)	19		7		12		29		17		11
	1,054		7		1,047		1,600		17		1,583
Classified as available-for-sale debt securities:
Government and agency—non-U.S.	2,498		—		2,498		9,609		—		9,609
Corporate and other	1,772		—		1,772		5,482		—		5,482
	4,270		—		4,270		15,091		—		15,091
Total short-term investments	5,324		7		5,317		16,691		17		16,674
Other current assets
Derivative assets:
Interest rate contracts	59		—		59		97		—		97
Foreign exchange contracts	559		—		559		477		—		477
Total other current assets	618		—		618		574		—		574
Long-term investments
Equity securities with readily determinable fair values^(a)	1,530		1,506		24		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	363		—		363		397		—		397
	408		—		408		491		—		491
Total long-term investments	1,937		1,506		432		1,764		1,243		521
Other noncurrent assets
Derivative assets:
Interest rate contracts	557		—		557		335		—		335
Foreign exchange contracts	367		—		367		232		—		232
Total other noncurrent assets	924		—		924		566		—		566
Total assets	$	8,803	$	1,513	$	7,290	$	19,595	$	1,260	$	18,335

Financial liabilities measured at fair value on a recurring basis:
Other current liabilities
Derivative liabilities:
Interest rate contracts	$	—	$	—	$	—	$	5	$	—	$	5
Foreign exchange contracts	133		—		133		78		—		78
Total other current liabilities	133		—		133		82		—		82
Other noncurrent liabilities
Derivative liabilities:
Interest rate contracts	—		—		—		378		—		378
Foreign exchange contracts	600		—		600		564		—		564
Total other noncurrent liabilities	600		—		600		942		—		942
Total liabilities	$	733	$	—	$	733	$	1,024	$	—	$	1,024

The following table provides the classification of these selected financial assets and liabilities in our condensed consolidated balance sheets:
(MILLIONS OF DOLLARS) October 1,
2017
December 31,
2016
Assets
Cash and cash equivalents $ 526
$ 547
Short-term investments 14,146
15,255
Other current assets^(a)
288
567
Long-term investments 7,311
7,116
Other noncurrent assets^(b)
543
689
$ 22,815
$ 24,175
Liabilities

Short-term borrowings, including current portion of long-term debt $ 9,448
$ 10,688
Other current liabilities^(c)
277
443
Long-term debt 34,503
31,398
Other noncurrent liabilities^(d)
896
1,222
$ 45,124
$ 43,750



The following table 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:
	September 29, 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	$	36,044	$	40,873	$	40,873	$	32,909	$	35,260	$	35,260

In addition, as of September 29, 2019 and December 31, 2018, we had long-term receivables whose fair value is based on Level 3 inputs. As of September 29, 2019 and December 31, 2018, the differences between the estimated fair values and carrying values of these receivables were not significant.



The following table represents our investments by classification type:
(MILLIONS OF DOLLARS)	September 29, 2019		December 31, 2018
Short-term investments
Equity securities with readily determinable fair values^(a)	$	1,054	$	1,600
Available-for-sale debt securities	4,270		15,091
Held-to-maturity debt securities	978		1,003
Total Short-term investments	$	6,302	$	17,694

Long-term investments
Equity securities with readily determinable fair values	$	1,530	$	1,273
Available-for-sale debt securities	408		491
Held-to-maturity debt securities	43		59
Private equity investments at cost	742		763
Total Long-term investments	$	2,723	$	2,586

Equity-method investments	15,999		181
Total long-term investments and equity-method investments	$	18,721	$	2,767
Held-to-maturity cash equivalents	$	217	$	199

The following table provides the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities:
Years October 1,
2017
(MILLIONS OF DOLLARS) Within 1

Over 1
to 5

Over 5
to 10

Over 10
Total
Available-for-sale debt securities
Corporate debt^(a)
$ 2,741
$ 2,591
$ 1,525
$ 17
$ 6,874
Western European, Asian, and other government debt^(b)
6,071
268
—
—
6,339
Western European, Scandinavian and other government agency debt^(b)
1,955
42
—
—
1,998
Supranational debt^(b)
387
195
—
—
582
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities 42
424
—
—
466
Other asset-backed debt^(c)
161
61
3
—
226
U.S. government debt —
112
—
—
112
Held-to-maturity debt securities

Time deposits and other 1,133
—
3
—
1,137
Western European government debt^(b)
326
—
—
—
326
Total debt securities $ 12,818
$ 3,694
$ 1,532
$ 18
$ 18,061



At September 29, 2019, the investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt and equity securities at September 29, 2019 and December 31, 2018 is as follows, including, as of September 29, 2019, the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities:
	September 29, 2019																	December 31, 2018
			Gross Unrealized							Maturities (in Years)										Gross Unrealized
(MILLIONS OF DOLLARS)	Amortized Cost		Gains		Losses			Fair Value		Within 1		Over 1 to 5		Over 5		Total		Amortized Cost		Gains		Losses			Fair Value
Available-for-sale debt securities
Government and agency––non-U.S.	$	2,538	$	11	$	(6	)	$	2,543	$	2,498	$	45	$	—	$	2,543	$	9,754	$	7	$	(58	)	$	9,703
Corporate and other^(a)	2,140		1		(6		)	2,135		1,772		360		2		2,135		5,905		—		(27		)	5,878
Held-to-maturity debt securities
Time deposits and other	636		—		—			636		593		8		35		636		668		—		—			668
Government and agency––non-U.S.	601		—		—			601		601		—		—		601		592		—		—			592
Total debt securities	$	5,916	$	11	$	(12	)	$	5,915	$	5,464	$	413	$	38	$	5,915	$	16,920	$	8	$	(85	)	$	16,842



Short-term borrowings include:
(MILLIONS OF DOLLARS)	September 29, 2019			December 31, 2018
Commercial paper	$	12,914		$	3,100
Current portion of long-term debt, principal amount	2,423			4,781
Other short-term borrowings, principal amount^(a)	1,334			966
Total short-term borrowings, principal amount	16,671			8,847
Net fair value adjustments related to hedging and purchase accounting	7			(5		)
Net unamortized discounts, premiums and debt issuance costs	(61		)	(11		)
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted	$	16,617		$	8,831

The following table provides the maturity schedule of our Long-term debt outstanding as of October 1, 2017:
(MILLIONS OF DOLLARS) 2018 2019 2020 2021 After 2021 Total
Maturities $ 481
$ 4,825
$ 1,534
$ 4,502
$ 23,162
$ 34,503



The following 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)	September 29, 2019			December 31, 2018
Total long-term debt, principal amount	$	34,602		$	32,558
Net fair value adjustments related to hedging and purchase accounting	1,614			479
Net unamortized discounts, premiums and debt issuance costs	(179		)	(136		)
Other long-term debt	7			7
Total long-term debt, carried at historical proceeds, as adjusted	$	36,044		$	32,909
Current portion of long-term debt, carried at historical proceeds, as adjusted	$	2,431		$	4,776

AsA significant portion of ~~October 1, 2017,~~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 ~~aggregate notional amount~~use of ~~foreign exchange~~ derivative financial instruments ~~hedging or offsetting~~and foreign currency ~~exposures was $31.5 billion.~~ 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 following tables provide information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:
	Amount of Gains/(Losses) Recognized in OID^(a)						Amount of Gains/(Losses) Recognized in OCI^{(a), (b)}					Amount of Gains/(Losses) Reclassified from OCI into OID and COS^{(a), (b)}
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018		September 29, 2019		September 30, 2018
Three Months Ended
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Foreign exchange contracts^(c)	$	—		$	—		$	131		$	183	$	7	$	198
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach	—			—			21			39		22		36
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts	378			(195		)	—			—		—		—
Hedged item	(378		)	195			—			—		—		—
Foreign exchange contracts	—			1			—			—		—		—
Hedged item	—			(1		)	—			—		—		—
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts	—			—			112			43		—		—
The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness	—			—			43			14		45		21
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign currency short-term borrowings^(d)	—			—			45			8		—		—
Foreign currency long-term debt^(d)	—			—			79			17		—		—
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts	(77		)	150			—			—		—		—
All other net	—			—			(1		)	—		—		—
	$	(77	)	$	150		$	429		$	304	$	74	$	256

The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:
Three Months Ended

Amount of
Gains/(Losses)
Recognized in OID^{(a), (b), (c)}

Amount of
Gains/(Losses)
Recognized in OCI
(Effective Portion)^{(a), (d)}

Amount of
Gains/(Losses)
Reclassified from
OCI into OID and COS
(Effective Portion)^{(a), (d)}
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Foreign currency swaps $ —
$ —
$ 218
$ 87
$ 148
$ (39 )
Foreign currency forward-exchange contracts 1
2
(269 ) (212 ) (204 ) (111 )
Derivative Financial Instruments in Net Investment Hedge Relationships:

Foreign currency forward-exchange contracts —
—
—
—
—
—

Derivative Financial Instruments Not Designated as Hedges:

Foreign currency forward-exchange contracts 33
20
—
—
—
—
Foreign currency swaps —
(4 ) —
—
—
—

Non-Derivative Financial Instruments in Net Investment Hedge Relationships:

Foreign currency long-term debt —
—
(166 ) —
—
—
All other net —
—
1
—
—
—
$ 34
$ 18
$ (216 ) $ (126 ) $ (55 ) $ (150 )

Nine Months Ended

Amount of
Gains/(Losses)
Recognized in OID^{(a), (b), (c)}

Amount of
Gains/(Losses)
Recognized in OCI
(Effective Portion)^{(a), (d)}

Amount of
Gains/(Losses)
Reclassified from
OCI into OID and COS
(Effective Portion)^{(a), (d)}
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Foreign currency swaps $ —
$ —
$ 455
$ (204 ) $ 419
$ (165 )
Foreign currency forward-exchange contracts (5 ) 1
(604 ) (770 ) (26 ) (118 )
Derivative Financial Instruments in Net Investment Hedge Relationships:

Foreign currency forward-exchange contracts —
1
—
(15 ) —
—

Derivative Financial Instruments Not Designated as Hedges:

Foreign currency forward-exchange contracts (111 ) (49 ) —
—
—
—
Foreign currency swaps (1 ) (9 ) —
—
—
—

Non-Derivative Financial Instruments in Net Investment Hedge Relationships:

Foreign currency short-term borrowings —
—
—
(26 ) —
—
Foreign currency long-term debt —
—
(518 ) —
—
—
All other net —
—
1
1
—
—
$ (117 ) $ (56 ) $ (666 ) $ (1,014 ) $ 394
$ (283 )



	Amount of Gains/(Losses) Recognized in OID^(a)						Amount of Gains/(Losses) Recognized in OCI^{(a), (b)}				Amount of Gains/(Losses) Reclassified from OCI into OID and COS^{(a), (b)}
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Nine Months Ended
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Foreign exchange contracts^(c)	$	—		$	—		$	137	$	147	$	265	$	(204	)
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach	—			—			105		87		108		84
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts	1,191			(715		)	—		—		—		—
Hedged item	(1,191		)	715			—		—		—		—
Foreign exchange contracts	—			5			—		—		—		—
Hedged item	—			(5		)	—		—		—		—
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts	—			—			87		191		—		—
The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness	—			—			136		41		99		47
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign currency short-term borrowings^(d)	—			—			65		50		—		—
Foreign currency long-term debt^(d)	—			—			89		111		—		—
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts	(201		)	156			—		—		—		—
All other net	—			—			—		1		—		1
	$	(201	)	$	156		$	617	$	629	$	472	$	(72	)



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					Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018			September 29 2019		September 30, 2018
Cost of sales	$	2,602	$	2,694		$	7,611	$	8,173
Other (income)/deductions—net	319		(414		)	537		(1,143		)



The following table provides the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges:
	September 29, 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	$	—	$	—	$	45	$	(1	)	$	—
Short-term borrowings, including current portion of long-term debt	—		—		—		1,499		(5		)	—
Long-term debt	7,101		557		700		9,952		(45		)	129

~~For information about the fair value of our derivative financial instruments, and the impact on our condensed consolidated balance sheets, see~~

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 ~~October 1, 2017,~~September 29, 2019, we had ~~$946 million~~amounts due from a well-diversified, high quality group of ~~technology companies~~banks ($2.7 billion) from around the world. For details about our investments, see Note 7B ~~above.~~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, ~~payments~~ depending on levels of exposure, our credit rating and the credit rating of the counterparty. As of October 1, 2017, we received cash collateral of $232 million from various counterparties. The collateral primarily supports the approximate fair value of our derivative contracts. With respect to the collateral received, the obligations are reported incounterparty, see ~~Short-term borrowings, including current portion of long-term debt.~~Note 7E above.


The following table provides the components of Inventories:	The following table provides the components of Inventories:					The following table provides the components of Inventories:
(MILLIONS OF DOLLARS)		October 1, 2017		December 31, 2016			September 29, 2019		December 31, 2018
Finished goods		$	2,977	$	2,293		$	2,594	$	2,262
Work-in-process		4,070		3,696			4,866		4,701
Raw materials and supplies		879		793			762		546
Inventories^(a)		$	7,925	$	6,783		$	8,222	$	7,508
Noncurrent inventories not included above^(b)		$	669	$	683		$	677	$	618


The following table provides the components of Identifiable intangible assets:	The following table provides the components of Identifiable intangible assets:															The following table provides the components of Identifiable intangible assets:
		October 1, 2017							December 31, 2016								September 29, 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			Gross Carrying Amount		Accumulated Amortization			Identifiable Intangible Assets, less Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization			Identifiable Intangible Assets, less Accumulated Amortization
Finite-lived intangible assets
Developed technology rights^(a)		$	89,585	$	(53,960	)	$	35,625	$	83,390	$	(49,650	)	$	33,740		$	91,212	$	(62,032	)	$	29,180	$	89,430	$	(58,895	)	$	30,535
Brands		2,135		(1,127		)	1,008		2,092		(1,032		)	1,060			922		(733		)	190		923		(708		)	215
Licensing agreements and other(a)		1,930		(1,071		)	859		1,869		(1,005		)	864			1,776		(1,173		)	603		1,436		(1,140		)	296
		93,650		(56,158		)	37,492		87,351		(51,687		)	35,664			93,910		(63,938		)	29,972		91,788		(60,743		)	31,045
Indefinite-lived intangible assets
Brands and other		6,937					6,937		6,883					6,883
Brands																	1,991					1,991		1,991					1,991
IPR&D^(a)		5,292					5,292		10,101					10,101			5,959					5,959		2,171					2,171
Licensing agreementsand other^(a)^,^(b)																	1,073					1,073		3					3
		12,229					12,229		16,984					16,984			9,023					9,023		4,165					4,165
Identifiable intangible assets^(b)		$	105,879	$	(56,158	)	$	49,721	$	104,335	$	(51,687	)	$	52,648
Identifiable intangible assets^(a),^(c)																	$	102,933	$	(63,938	)	$	38,995	$	95,954	$	(60,743	)	$	35,211

Licensing agreements for developed technology and licensing agreements for technology in development primarily relate to out-licensing arrangements acquired from third parties, including the Array acquisition. These intangible assets represent the amortized or unamortized cost associated with the license, where Pfizer has acquired the right to future royalties and/or milestones upon development or commercialization by the licensing partner. A significant component of the licensing arrangements at September 29, 2019 are for out-licensing arrangements with a number of partners for oncology technology in varying stages of development that have not yet received regulatory approval in a major market. Accordingly, during the development period after the date of acquisition, each of these assets is classified as indefinite-lived intangible assets and will not be amortized until approval is obtained in a major market. At that time we will determine the useful life of the asset, reclassify the respective licensing arrangement asset to finite-lived intangible asset and begin amortization. If the development effort is abandoned, the related licensing asset will likely be written-off, and we will record an impairment charge.

Total amortization expense for finite-lived intangible assets was $1.2 billion for the third quarter of ~~2017~~2019 and ~~$988 million~~$1.3 billion for the third quarter of ~~2016~~2018, and $3.6 billion for the first nine months of ~~2017~~2019 and ~~$3.0~~$3.7 billion for the first nine months of ~~2016~~2018.

~~B. Goodwill~~Prior to 2019, we managed our commercial operations through 2 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 managed through 3 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 was classified as held for sale as of December 31, 2018 and therefore, the goodwill attributable to the Pfizer Consumer Healthcare business was not included in the table below (see Note 2B. for further information). Additionally, upon closing of the transaction during the third quarter, we deconsolidated our Consumer Healthcare business and derecognized Consumer Healthcare goodwill.

Pension Plans
(MILLIONS OF DOLLARS) U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans
Contributions from our general assets for the nine months ended October 1, 2017 $ 1,095
$ 121
$ 134
$ 158
Expected contributions from our general assets during 2017^(a)
$ 1,095
$ 146
$ 170
$ 204



The following 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)	Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018
Net periodic benefit cost/(credit):
Service cost	$	—		$	—		$	—		$	—		$	31		$	33		$	9		$	10
Interest cost	157			149			12			14			53			52			19			18
Expected return on plan assets	(222		)	(259		)	—			—			(79		)	(89		)	(8		)	(9		)
Amortization of:
Actuarial losses	37			30			2			3			20			25			—			2
Prior service credits	(1		)	—			—			—			(1		)	(1		)	(43		)	(45		)
Curtailments	—			1			—			1			—			(4		)	(47		)	(1		)
Settlements	1			38			22			3			12			—			(10		)	—
Special termination benefits	3			—			5			—			—			—			1			—
	$	(25	)	$	(40	)	$	41		$	20		$	37		$	17		$	(78	)	$	(26	)
	Nine Months Ended
	Pension Plans
	U.S. Qualified						U.S. Supplemental (Non-Qualified)						International						Postretirement Plans
(MILLIONS OF DOLLARS)	Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018			Sept. 29, 2019			Sept. 30, 2018
Net periodic benefit cost/(credit):
Service cost	$	—		$	—		$	—		$	—		$	94		$	104		$	28		$	29
Interest cost	472			450			37			40			162			160			57			54
Expected return on plan assets	(667		)	(783		)	—			—			(239		)	(274		)	(25		)	(28		)
Amortization of:
Actuarial losses	110			90			7			10			61			77			2			5
Prior service costs/(credits)	(2		)	1			(1		)	(1		)	(3		)	(3		)	(132		)	(135		)
Curtailments	—			11			—			1			—			(4		)	(47		)	(15		)
Settlements	3			84			21			24			12			—			(10		)	—
Special termination benefits	4			—			14			—			—			1			2			—
	$	(80	)	$	(147	)	$	78		$	75		$	88		$	61		$	(124	)	$	(89	)

We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of ~~business.~~business, including tax and legal contingencies. For a discussion of our tax contingencies, see Note 5B.

Our ~~non-tax~~legal contingencies include, but are not limited to, the following:

We believe that our claims and defenses in ~~these~~ 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,

In December 2016, Wyeth LLC, Wyeth Pharmaceuticals Inc., and PF Prism C.V. (collectively, ~~Wyeth)~~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 ~~Limited~~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 ~~patents, which expire in 2026,~~a patent covering polymorphic forms of bosutinib, which expires in 2026, and a patent covering methods of treating chronic myelogenous ~~leukemia.~~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~~2 other patents challenged by Sun, ~~which expire in 2025 and 2026 respectively,~~ covering compositions of bosutinib and methods of treating chronic myelogenous ~~leukemia.~~

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.

In June 2014, Ben Venue Laboratories, Inc. (Ben Venue) notified our subsidiary, Hospira, that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Hospira’s premix version of Precedex and containing allegations that a patent ~~relating~~related to the use of Precedex in an intensive care unit setting, which ~~expires~~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 that is the subject of the lawsuit.~~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.

Beginning in May 2013, several generic drug manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Toviaz and asserting the invalidity, unenforceability and/or non-infringement of all of our patents for Toviaz that are listed in the FDA’s list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly referred to as the “Orange Book”. Beginning in June 2013, we filed actions against all of those generic drug manufacturers in the U.S. District Court for the District of Delaware, asserting the infringement of five of the patents for Toviaz: three composition-of-matter patents and a method-of-use patent that expire in 2019 and a patent covering salts of fesoterodine that expires in 2022. In June and July 2015, we settled with four of the generic defendants. The trial relating to the four remaining defendants occurred in July 2015. In April 2016, the District Court held that the patents that were the subject of the lawsuit were valid and infringed. The defendants’ deadline to appeal this decision expired in June 2016.

In December ~~2016, Torrent Pharmaceuticals,~~2017, Jiangsu Hengrui Medicine Co., Ltd. ~~(Torrent)~~(Hengrui) notified usHospira that it had filed anabbreviated new drug application with the FDA seeking approval to market a generic version of ~~Toviaz~~Hospira’s premix version of Precedex and ~~asserting~~containing allegations that 6 patents relating to the ~~invalidity, unenforceability and/or non-infringement of~~Precedex premix formulations and their use, all of ~~our patents for Toviaz that are listed~~which expire in ~~the Orange Book.~~2032, were invalid or not infringed. In February ~~2017, we~~2018, Hospira filed ~~an action~~suit against ~~Torrent~~Hengrui in the U.S. District Court for the District of Delaware asserting the validity and infringement of ~~the same five~~4 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 ~~Mylan Pharmaceuticals.~~Hospira in the U.S. District Court for the District of Delaware seeking a declaration of non-infringement of 4 patents relating to the Precedex premix formulations and their use. NaN 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 3 patents expire in 2032. In ~~September 2017, this~~March 2018, Hospira filed a counterclaim for infringement of the patent that expired in 2019. In November 2018, the case was ~~dismissed.~~dismissed by mutual agreement of the parties.

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~~3 patents challenged by MicroLabs in its abbreviated new drug application seeking approval to market a generic version of tofacitinib 5 mg tablets. ~~Of the three patents that are the subject~~In November 2018, we settled all of the lawsuit, one covers the active ingredient and expires in December 2025, the second covers an enantiomer of tofacitinib and expires in 2022, and the third covers a polymorphic form of tofacitinib and expires in 2023. Three other patents for Xeljanz expiring in December 2020 haveour claims against MicroLabs on terms not ~~been challenged by MicroLabs.~~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 ~~Pharmaceutical Industries~~ 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 ~~Pharmaceuticals Industries~~ Ltd. in the U.S. District Court for the District of Delaware asserting the infringement and validity of another patent challenged by Sun ~~Pharmaceuticals Industries Ltd,~~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 3 patents: the ~~same three patents that are~~patent covering the ~~subject~~active ingredient expiring in December 2025, the patent covering an enantiomer of tofacitinib expiring in 2022, and the ~~action against MicroLabs,~~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~~2 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~~4 additional patents challenged by Breckenridge, ~~three~~3 of which expire in December 2020 and ~~one~~1 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 2 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.

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.

In May 2019, Glenmark Pharmaceuticals Limited (Glenmark) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Inlyta. Glenmark asserts the invalidity and non-infringement of the crystalline form patent for Inlyta that expires in 2030. In June 2019, we filed suit against Glenmark in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the crystalline form patent for Inlyta.

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 February, March, and April 2017, ~~twenty-five~~NaN 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~~3 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~~3 patents.

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.

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 ~~October 1, 2017,~~September 29, 2019, approximately ~~56,500~~46,500 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~~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.

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.

A number of individual and multi-plaintiff lawsuits have been filed against us in various federal and state courts alleging that the plaintiffs developed melanoma and/or the exacerbation of melanoma purportedly as a result of the ~~purported~~ ingestion of Viagra. Plaintiffs seek compensatory and punitive damages.

Beginning in November 2016, purported class actions were filed in the U.S. District Court for the Northern District of Illinois against Hospira, Hospira Worldwide, Inc. and certain other defendants relating to intravenous saline solution. Plaintiffs seek to represent ~~classes~~a class consisting of all persons and entities in the U.S. who directly purchased intravenous saline solution sold by any of the defendants from January 1, 2013 until the time the defendants’ allegedly unlawful conduct ceases. Plaintiffs allege that the defendants’ conduct restricts output and artificially fixes, raises, maintains and/or stabilizes the prices of intravenous saline

solution sold throughout the U.S. in violation of federal antitrust laws. Plaintiffs seek treble damages (for themselves and on behalf of the putative classes) and an injunction against defendants for alleged price overcharges for intravenous saline solution in the U.S. since January 1, 2013. All of these actions have been consolidated in the U.S. District Court for the Northern District of Illinois. In July 2018, the District Court granted defendants’ motions to dismiss the consolidated amended complaint without prejudice. Plaintiffs filed a second amended complaint in September 2018. On February 3, 2017, we completed the sale of our global infusion ~~therapy~~systems net assets, HIS, which includes intravenous saline solution, to ICU Medical. The litigation is the subject of cross-claims for indemnification by both Pfizer and ICU Medical under the purchase agreement.

A certified consumer class action is pending against Wyeth in the U.S. District Court for the Southern District of California based on the alleged off-label marketing of its hormone therapy products. The case was originally filed in December 2003. The class consists of California consumers who purchased Wyeth’s hormone-replacement products between January 1995 and January 2003 and who do not seek personal injury damages therefrom. The class seeks compensatory and punitive damages, including a full refund of the purchase price.

Beginning in February 2017, purported class actions were filed in various federal courts by indirect purchasers of EpiPen against Pfizer, and/or its affiliates King and Meridian, and/or various entities affiliated with Mylan, ~~N.V.,~~ and Mylan ~~N.V.~~ Chief Executive Officer, Heather Bresch. The plaintiffs in these actions seek to represent U.S. nationwide classes comprising persons or entities who paid for any portion of the end-user purchase price of an EpiPen between 2009 until the cessation of the defendants’ allegedly unlawful conduct. In August 2017, a similar lawsuit brought in the U.S. District Court for the District of New Jersey on behalf of a purported class of direct purchaser plaintiffs against Pfizer, King, Meridian and Mylan was voluntarily dismissed without prejudice. Against Pfizer and/or its affiliates, plaintiffs generally allege that Pfizer’s and/or its affiliates’ settlement of patent litigation regarding EpiPen delayed market entry of generic EpiPen in violation of federal antitrust laws and various state antitrust or consumer protection laws. At least one lawsuit also alleges that Pfizer and/or Mylan ~~N.V.~~ violated the federal Racketeer Influenced and Corrupt Organizations Act. Plaintiffs also filed various consumer protection and unjust enrichment claims against, and relating to conduct attributable solely to, Mylan ~~Pharmaceuticals~~and/or its affiliates regarding EpiPen. Plaintiffs seek treble damages for alleged overcharges for EpiPen since 2009. In August 2017, the actions were consolidated for coordinated pre-trial proceedings in a Multi-District Litigation (In re: EpiPen (Epinephrine Injection, USP) Marketing, Sales Practices and Antitrust Litigation, MDL-2785) in the U.S. District Court for the District of Kansas with other EpiPen-related actions against Mylan ~~N.V.~~ and/or its affiliates to which Pfizer, King and Meridian are not parties.

A number of individual and multi-plaintiff lawsuits have been filed against Pfizer, certain of its subsidiaries and/or other pharmaceutical manufacturers in various federal and state courts alleging that the plaintiffs developed kidney-related injuries purportedly as a result of the ~~purported~~ ingestion of certain proton pump inhibitors. The cases against usPfizer involve Protonix and/or Nexium 24HR ~~and/or Protonix~~ and seek compensatory and punitive damages and, in some cases, treble damages, restitution or disgorgement. In August 2017, the federal actions were ordered transferred for coordinated pre-trial proceedings to a Multi-District Litigation (In re: Proton-Pump Inhibitor Products Liability Litigation (No. II)) in the U.S. District Court for the District of New Jersey. On July 31, 2019, we completed 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. As part of the joint venture transaction, the joint venture has agreed to assume, and to indemnify Pfizer for, liabilities arising out of such litigation to the extent related to Nexium 24HR.

Pfizer, certain of its subsidiaries and other pharmaceutical manufacturers were sued in various state courts by a number of states alleging that the defendants provided average wholesale price (AWP) information for certain of their products that was higher than the actual average prices at which those products were sold. The AWP is used to determine reimbursement levels under Medicare Part B and Medicaid and in many private-sector insurance policies and medical plans. All but ~~one~~1 of those actions have been resolved through settlement, dismissal or final judgment. The plaintiff state, Illinois, in the ~~one~~1 remaining action, claims that the alleged spread between the AWPs at which purchasers were reimbursed and the actual sale prices was promoted by the defendants as an incentive to purchase certain of their products. The action alleges, among other things, fraud and violation of the state’s unfair trade practices and consumer protection statutes and seeks monetary and other relief, including civil penalties and treble damages. In September 2019, we settled the remaining action on terms not material to Pfizer. All actions have now been resolved through settlement, dismissal or final judgment.

In 1997, Monsanto Company (Former Monsanto) contributed certain chemical manufacturing operations and facilities to a newly formed corporation, Solutia Inc. (Solutia), and spun off the shares of Solutia. In 2000, Former Monsanto merged with Pharmacia & Upjohn Company to form Pharmacia. Pharmacia then transferred its agricultural operations to a newly created subsidiary, named Monsanto Company (New Monsanto), which it spun off in a two-stage process that was completed in 2002. Pharmacia was acquired by Pfizer in 2003 and is a ~~wholly-owned~~wholly owned subsidiary of Pfizer.

We are a party to a number of other proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and other state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation.

In August 2018, Pfizer was named as a defendant in a third-party complaint for indemnity, along with King, filed by Allergan Finance LLC (Allergan) in a Multi-District Litigation (In re National Prescription Opiate Litigation MDL 2804) in the U.S. District Court for the Northern District of Ohio. The lawsuit asserted claims for indemnity related to Kadian, which was owned for a short period by King in 2008, prior to Pfizer's acquisition of King in 2010. In December 2018, the District Court dismissed the lawsuit. In February 2019, Allergan filed a similar complaint in the Supreme Court of the State of New York, asserting claims for indemnity related to Kadian.

In 2012, Pfizer sold the U.K. Marketing Authorisation for phenytoin sodium capsules to a third party, but retained the right to supply the finished product to that third party. In May 2013, the U.K. Competition & Markets Authority (CMA) informed us that it had launched an investigation into the supply of phenytoin sodium capsules in the U.K. market. In August 2015, the CMA issued a Statement of Objections alleging that Pfizer and Pfizer Limited, a U.K. subsidiary, engaged in conduct that violates U.K. and EU antitrust laws. In December 2016, the CMA imposed a £~~84.2~~£84.2 million fine on Pfizer and Pfizer Limited. Pfizer appealed the CMA ~~Decision~~decision to The Competition Appeal Tribunal in February 2017.On June 7, 2018, the Competition

~~Civil Investigative Demand relating to Pharmacy Benefit Managers~~

In October 2018, we received a subpoena from the U.S. Attorney’s Office for the Southern District of New York (SDNY) seeking records relating to our relationship with another drug manufacturer and its production and manufacturing of drugs including, but not limited to, Quillivant XR. We are producing records pursuant to the subpoena.

In February 2019, we received a civil investigative demand from the U.S. Attorney’s Office for the SDNY. The civil investigative demand seeks records and information related to alleged quality issues involving the manufacture of auto-injectors at our Meridian site. In August 2019, we received a HIPAA subpoena from the U.S. Attorney’s Office for the Eastern District of Missouri seeking similar records and information. We are producing records in response to these requests.

See Note 12A3. Contingencies and Certain Commitments: Legal Proceedings––Commercial and Other Matters––Contracts with Iraqi Ministry of Health above for information regarding U.S. government investigations related to contracts with the Iraqi Ministry of Health.

See Note 12A2.Contingencies and Certain Commitments: Legal Proceedings––Product Litigation––~~Intravenous Solutions~~Docetaxel––Mississippi Attorney General Government Investigation above for information regarding a government ~~investigations~~investigation related to ~~sales of intravenous solution products.~~Docetaxel marketing practices.

WeAt the beginning of our 2019 fiscal year, we began to manage our commercial operations through ~~two~~a new global structure consisting of 3 distinct business segments: Pfizer ~~Innovative Health (IH)~~Biopharmaceuticals Group (Biopharma), Upjohn and ~~Pfizer Essential Health (EH). The IH and EH segments are~~through July 31, 2019, Pfizer’s Consumer Healthcare business (Consumer Healthcare), 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 ~~for certain~~WRDM. These services include IPR&D projects for new investigational products and additional indications for in-line ~~products that generally have achieved proof-of-concept.~~products. Each business has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the ~~two~~ operating segments, among other factors, for performance evaluation and resource allocation.

We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared ~~(such as our plant network assets)~~ or commingled (such as accounts receivable, as many of our customers are served by ~~both~~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 ~~$172~~$170 billion as of ~~October 1, 2017~~September 29, 2019 and $159 billion as of December 31, ~~2016~~2018.

The following table provides selected income statement information by reportable segment:
Three Months Ended
Revenues
Earnings^(a)
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Reportable Segments:
IH $ 8,118
$ 7,332
$ 4,875
$ 4,187
EH 5,050
5,712
2,765
3,128
Total reportable segments 13,168
13,045
7,640
7,315
Other business activities^{(b), (c)}
—
—
(759 ) (753 )
Reconciling Items:

Corporate^(c)
—
—
(1,382 ) (1,537 )
Purchase accounting adjustments^(c)
—
—
(1,154 ) (966 )
Acquisition-related costs^(c)
—
—
(155 ) (280 )
Certain significant items^(d)
—
—
(449 ) (1,969 )
Other unallocated —
—
(156 ) (206 )
$ 13,168
$ 13,045

$ 3,585
$ 1,604

Nine Months Ended
Revenues
Earnings^(a)
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Reportable Segments:
IH $ 23,204
$ 21,471
$ 14,190
$ 12,470
EH 15,639
17,725
8,558
9,985
Total reportable segments 38,843
39,196
22,748
22,454
Other business activities^{(b), (c)}
—
—
(2,205 ) (2,096 )
Reconciling Items:
Corporate^(c)
—
—
(3,948 ) (4,217 )
Purchase accounting adjustments^(c)
—
—
(3,527 ) (3,103 )
Acquisition-related costs^(c)
—
—
(347 ) (598 )
Certain significant items^(d)
—
—
(797 ) (4,112 )
Other unallocated —
—
(573 ) (753 )
$ 38,843
$ 39,196
$ 11,351
$ 7,575



The following table provides selected income statement information by reportable segment:
	Three Months Ended
	Revenues				Earnings^(a)
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		September 29, 2019			September 30, 2018
Reportable Segments:
Biopharma	$	10,108	$	9,422	$	6,503		$	6,206
Upjohn	2,195		3,036		1,353			2,051
Total reportable segments	12,303		12,458		7,856			8,257
Other business activities	—		—		(1,443		)	(1,298		)
Reconciling Items:
Corporate and other unallocated	377		839		(1,431		)	(1,658		)
Purchase accounting adjustments	—		—		(1,141		)	(1,309		)
Acquisition-related costs	—		—		(300		)	(112		)
Certain significant items^(b)	—		—		7,187			298
	$	12,680	$	13,298	$	10,727		$	4,177

	Nine Months Ended
	Revenues				Earnings^(a)
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		September 29, 2019			September 30, 2018
Reportable Segments:
Biopharma	$	28,887	$	27,737	$	18,484		$	17,987
Upjohn	8,077		9,302		5,577			6,442
Total reportable segments	36,964		37,040		24,062			24,428
Other business activities	—		—		(3,750		)	(3,605		)
Reconciling Items:
Corporate and other unallocated	2,098		2,631		(4,108		)	(4,558		)
Purchase accounting adjustments	—		—		(3,357		)	(3,665		)
Acquisition-related costs	—		—		(152		)	(221		)
Certain significant items^(b)	—		—		6,495			452
	$	39,062	$	39,670	$	19,190		$	12,831

C. Other Revenue Information



The following table provides detailed revenue information:
(MILLIONS OF DOLLARS)		Three Months Ended				Nine Months Ended
PRODUCT	PRIMARY INDICATIONS OR CLASS	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
TOTAL REVENUES		$	12,680	$	13,298	$	39,062	$	39,670
PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA)^(a)		$	10,108	$	9,422	$	28,887	$	27,737
Internal Medicine^(b)		$	2,207	$	2,182	$	6,754	$	6,529
Eliquis alliance revenues and direct sales	Atrial fibrillation, deep vein thrombosis, pulmonary embolism	1,025		870		3,121		2,524
Chantix/Champix	An aid to smoking cessation treatment in adults 18 years of age or older	276		261		825		789
Premarin family	Symptoms of menopause	182		204		542		605
BMP2	Development of bone and cartilage	66		54		212		206
Toviaz	Overactive bladder	61		67		186		197
All other Internal Medicine	Various	597		727		1,867		2,208
Oncology^(c)		$	2,350	$	1,840	$	6,547	$	5,487
Ibrance	Advanced breast cancer	1,283		1,025		3,677		2,985
Sutent	Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor	224		248		704		785
Xtandi alliance revenues	Castration-resistant prostate cancer	225		180		594		510
Xalkori	ALK-positive and ROS1-positive advanced NSCLC	130		127		385		417
Inlyta	Advanced RCC	139		71		316		226
Bosulif	Philadelphia chromosome–positive chronic myelogenous leukemia	90		69		267		206
Retacrit^(j)	Anemia	64		19		147		55
All other Oncology	Various	194		101		456		302
Hospital^(d)		$	1,917	$	1,841	$	5,717	$	5,944
Sulperazon	Treatment of infections	163		145		505		464
Medrol^(e)	Steroid anti-inflammatory	109		110		348		369
Vfend	Fungal infections	87		87		265		294
Zithromax^(e)	Bacterial infections	77		61		254		243
EpiPen	Epinephrine injection used in treatment of life-threatening allergic reactions	92		68		238		215
Zyvox	Bacterial infections	61		50		195		184
Fragmin	Slows blood clotting	62		76		185		221
Zosyn/Tazocin	Antibiotic	49		56		153		176
Tygacil	Tetracycline class antibiotic	50		60		146		186
Pfizer CentreOne^(f)	Various	176		159		556		539
All other Anti-infectives	Various	335		300		961		929
All other Hospital^(d)	Various	656		669		1,910		2,124
Vaccines		$	1,808	$	1,845	$	4,795	$	4,708
Prevnar 13/Prevenar 13	Pneumococcal disease	1,603		1,660		4,268		4,290
FSME/IMMUN-TicoVac	Tick-borne encephalitis disease	64		57		197		162
Nimenrix	Meningococcal disease	52		46		159		95
Trumenba	Meningococcal disease	73		61		117		95
All other Vaccines	Various	16		21		54		65
Inflammation & Immunology (I&I)^(g)		$	1,226	$	1,184	$	3,482	$	3,419
Xeljanz	RA, PsA, UC	599		432		1,634		1,221
Enbrel (Outside the U.S. and Canada)	RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis	415		531		1,285		1,589
Inflectra/Remsima^{(g), (j)}	Inflammatory diseases	155		166		446		469
Eucrisa	Mild-to-moderate atopic dermatitis (eczema)	43		40		92		104
All other I&I	Various	15		14		24		36

The following table provides detailed revenue information:
Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
PFIZER INNOVATIVE HEALTH (IH)^(a)
$ 8,118
$ 7,332
$ 23,204
$ 21,471
Internal Medicine $ 2,455
$ 2,243
$ 7,245
$ 6,557
Lyrica IH^(b)
1,150
1,049
3,382
3,107
Eliquis alliance revenues and direct sales 644
449
1,813
1,225
Chantix/Champix 240
198
727
631
Viagra IH^(c)
206
297
711
897
BMP2 79
63
198
175
Toviaz 62
60
187
191
All other Internal Medicine 75
128
228
330
Vaccines $ 1,649
$ 1,641
$ 4,385
$ 4,576
Prevnar 13/Prevenar 13 1,522
1,536
4,069
4,302
FSME/IMMUN-TicoVac 43
33
119
102
All other Vaccines 85
72
197
172
Oncology $ 1,616
$ 1,104
$ 4,551
$ 3,206
Ibrance 878
550
2,410
1,492
Sutent 276
260
805
823
Xalkori 146
140
442
415
Xtandi alliance revenues 150
2
422
2
Inlyta 84
95
256
304
Bosulif 57
43
163
121
All other Oncology 26
15
54
49
Inflammation & Immunology (I&I) $ 1,000
$ 960
$ 2,863
$ 2,907
Enbrel (Outside the U.S. and Canada) 613
701
1,818
2,201
Xeljanz 348
235
935
649
Eucrisa
15

—

33

—
All other I&I 23
24
78
57
Rare Disease $ 569
$ 585
$ 1,637
$ 1,768
BeneFIX 151
176
453
543
Refacto AF/Xyntha 140
140
409
408
Genotropin 136
147
375
425
Somavert 65
59
182
173
All other Rare Disease 77
64
218
219
Consumer Healthcare $ 829
$ 798
$ 2,522
$ 2,457
PFIZER ESSENTIAL HEALTH (EH)^(d)
$ 5,050
$ 5,712
$ 15,639
$ 17,725
Legacy Established Products (LEP)^(e)
$ 2,681
$ 2,708
$ 7,995
$ 8,373
Lipitor 491
422
1,341
1,294
Premarin family 238
244
711
751
Norvasc 226
238
684
714
EpiPen 82
110
253
300
Xalatan/Xalacom 83
91
241
273
Effexor 76
70
215
207
Zoloft 78
72
215
228
Zithromax 61
56
202
203
Relpax 50
83
193
248
Xanax 58
55
164
163
All other LEP 1,237
1,268
3,776
3,992
Sterile Injectable Pharmaceuticals (SIP)^(f)
$ 1,273
$ 1,461
$ 4,270
$ 4,481
Medrol 109
102
352
330
Sulperazon 114
102
345
304
Fragmin 79
80
221
240
Tygacil 60
69
192
203
Precedex 51
64
182
199
All other SIP 860
1,044
2,977
3,206

Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Peri-LOE Products^(g)
$ 794
$ 1,023
$ 2,398
$ 3,224
Celebrex 212
194
564
550
Lyrica EH^(b)
134
191
428
623
Vfend 97
140
305
459
Viagra EH^(c)
102
89
285
286
Pristiq 69
174
230
546
Zyvox 68
94
220
334
Revatio 58
73
189
213
All other Peri-LOE Products 55
68
176
214
Biosimilars^(h)
$ 141
$ 83
$ 367
$ 228
Inflectra/Remsima 112
49
284
130
All other Biosimilars 28
34
82
97
Pfizer CentreOne⁽ⁱ⁾
$ 161
$ 156
$ 514
$ 540
Hospira Infusion Systems (HIS)^(j)
$ —
$ 281
$ 97
$ 879
Revenues $ 13,168
$ 13,045
$ 38,843
$ 39,196

Total Lyrica^(b)
$ 1,285
$ 1,240
$ 3,810
$ 3,730
Total Viagra^(c)
$ 308
$ 387
$ 996
$ 1,183
Total Alliance revenues $ 741
$ 419
$ 2,112
$ 1,155



(MILLIONS OF DOLLARS)		Three Months Ended				Nine Months Ended
PRODUCT	PRIMARY INDICATIONS OR CLASS	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Rare Disease		$	601	$	531	$	1,592	$	1,651
BeneFIX	Hemophilia	125		132		372		420
Genotropin	Replacement of human growth hormone	124		143		357		416
Refacto AF/Xyntha	Hemophilia	104		117		319		388
Vyndaqel	ATTR-Cardiomyopathy and Polyneuropathy	156		37		259		108
Somavert	Acromegaly	64		64		192		195
All other Rare Disease	Various	28		38		94		123
UPJOHN^(b)^,^(h)		$	2,195	$	3,036	$	8,077	$	9,302
Lyrica	Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury	527		1,213		2,888		3,649
Lipitor	Reduction of LDL cholesterol	476		507		1,506		1,539
Norvasc	Hypertension	219		248		735		777
Celebrex	Arthritis pain and inflammation, acute pain	179		188		526		494
Viagra	Erectile dysfunction	120		137		379		509
Effexor	Depression and certain anxiety disorders	80		78		242		228
Zoloft	Depression and certain anxiety disorders	74		72		217		223
Xalatan/Xalacom	Glaucoma and ocular hypertension	68		76		201		233
Xanax	Anxiety disorders	50		52		147		163
Revatio	Pulmonary arterial hypertension	24		53		122		163
All other Upjohn	Various	379		411		1,114		1,325
CONSUMER HEALTHCARE BUSINESS⁽ⁱ⁾		$	377	$	839	$	2,098	$	2,631

Total Alliance revenues	Various	$	1,141	$	977	$	3,418	$	2,820
Total Biosimilars^(j)	Various	$	236	$	197	$	632	$	558
Total Sterile Injectable Pharmaceuticals^(k)		$	1,248	$	1,239	$	3,703	$	3,928

To the Board of Directors and Shareholders of Pfizer Inc.:

We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the ~~Public Company Accounting Oversight Board (United States),~~PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ KPMG LLP

New York, New York

November ~~9, 2017~~7, 2019

See the Glossary of Defined Terms at the beginning of this Quarterly Report on Form 10-Q for terms used throughout this MD&A. Our MD&A is provided in addition to the accompanying condensed consolidated financial statements and footnotes to assist readers in understanding Pfizer’s results of operations, financial condition and cash flows. The MD&A is organized as follows:

We apply science and our global resources to bring therapies to people that extend and significantly improve their lives through the discovery, development and manufacture of healthcare ~~products. Our global portfolio includes~~products, including innovative medicines and ~~vaccines, as well as many of the world’s best-known consumer healthcare products.~~vaccines. We work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. We collaborate with healthcare providers, governments and local communities to support and expand access to reliable, affordable healthcare around the world. Our revenues are derived from the sale of our products and, to a much lesser extent, from alliance agreements, under which we co-promote products discovered or developed by other companies or us (Alliance revenues).

WeAt the beginning of our 2019 fiscal year, we began to manage our commercial operations through ~~two distinct~~a new global structure consisting of three business ~~segments:~~ segments––Pfizer ~~Innovative Health (IH)~~Biopharmaceuticals Group (Biopharma), Upjohn and ~~Pfizer Essential Health (EH).~~through July 31, 2019, Consumer Healthcare. Biopharma and Upjohn are the only reportable segments. For additional information, see Notes to Condensed Consolidated Financial Statements––Note 2B. Acquisitions, Equity-Method Investment and Assets and Liabilities Held for Sale and Research and Development Arrangement: Equity-Method Investment and Assets and Liabilities Held for Sale andNote 13A. Segment, Geographic and Other Revenue Information: Segment Information and the “Our Strategy––Commercial Operations” section of this MD&A below.

The financial information included in our condensed consolidated financial statements for our subsidiaries operating outside the U.S. is as of and for the three and nine months ended August ~~27, 2017~~25, 2019 and August ~~28, 2016.~~26, 2018. The financial information included in our condensed consolidated financial statements for U.S. subsidiaries is as of and for the three and nine months ended ~~October 1, 2017~~September 29, 2019 and ~~October 2, 2016~~September 30, 2018.

The product shortages we have been experiencing ~~product shortages with some products. The product shortages~~within our portfolio are primarily for products from the legacy Hospira portfolio and are largely driven by capacity constraints, technical issues and ~~technical issues. In February 2017, for example, we received a~~

Revenues in the third quarter of ~~2017~~2019 ~~increased 1%~~decreased $618 million, or 5%, compared to the same period in ~~2016~~2018, which reflects an operational ~~increase~~decrease of ~~$178~~$403 million, or 1%3%, ~~slightly offset by~~as well as the unfavorable impact of foreign ~~exchange.~~exchange of $215 million, or 2%.

(MILLIONS OF DOLLARS) Three Months
Nine Months

Revenues, for the three months and nine months ended October 2, 2016
$ 13,045
$ 39,196

Disposition-related operational impact––February 2017 sale of HIS^(a)
(280 ) (783 )

Other operational growth/(decline)
Continued growth from key brands^(b) and growth from Biosimilars
806
2,245
Growth in Xtandi alliance revenues in the U.S. (September 2016 acquisition of Medivation) 148
420
Declines from Peri-LOE Products, Enbrel (driven by declines in most developed Europe markets), Prevnar 13/Prevenar 13 (driven by declines in the U.S.), and Viagra (IH) (primarily in the U.S.), as well as a decline in our SIP portfolio, and for the first nine months of 2017, also includes a decline in the LEP portfolio (598 ) (1,951 )
Other operational factors, net 102
87
Operational growth, net 178
19

Operational revenues 13,222
39,215
Unfavorable impact of foreign exchange (54 ) (372 )
Revenues, for the three months and nine months ended October 1, 2017
$ 13,168
$ 38,843



(MILLIONS OF DOLLARS)	Three Months			Nine Months
Revenues, for the three and nine months ended September 30, 2018	$	13,298		$	39,670

Operational growth/(decline):
Continued growth from certain key brands^(a)	621			1,978
Higher revenues for Biosimilars, certain rare disease productsand Inlyta primarily in the U.S.; and, in the nine months ended September 29, 2019, volume growth from Celebrex and Effexor, primarily in Japan and China	200			284
Decline from Lipitor and Norvasc in the third quarter of 2019 and growth from Lipitor in the first nine months of 2019, partially offset by decline from Norvasc	(35		)	37
Declines from Viagra and Pfizer’s authorized generic for Viagra in the U.S.; Enbrel internationally; Lyrica, primarily in the U.S., reflecting significant lower volume associated with multi-source generic competition that began in July 2019; Revatio and Relpax primarily in the U.S.; and in the third quarter of 2019, Prevnar 13/Prevenar 13	(897		)	(1,215		)
Decline from Consumer Healthcare reflecting the July 31, 2019 completion of the Consumer Healthcare joint venture transaction with GSK	(451		)	(462		)
Growth/(decline) from the Hospital business	112			(46		)
Other operational factors, net	47			10
Operational growth/(decline), net	(403		)	586

Operational revenues	12,895			40,256
Unfavorable impact of foreign exchange	(215		)	(1,194		)
Revenues, for the three and nine months ended September 29, 2019	$	12,680		$	39,062

The loss, expiration or invalidation of intellectual property rights, patent litigation settlements with ~~generic~~ manufacturers and the expiration of co-promotion and licensing rights can have a significant adverse effect on our revenues. WeMany of our branded products have multiple patents that expire at varying dates, thereby strengthening our overall patent protection. However, once patent protection has expired or has been lost prior to the expiration date as a result of a legal challenge, we typically lose exclusivity on these products, and generic and biosimilar pharmaceutical manufacturers generally produce similar products and sell them for a number of our products in certain markets and we have lost collaboration rights with respect to a number of our alliance products in certain markets, and we expect certain products to face significantly increasedlower price. The date at which generic competition ~~over~~commences may be different from the ~~next few years.~~date that the patent or regulatory exclusivity expires. However, when generic competition does commence, the resulting price competition can

substantially decrease our revenues for the impacted products, often in a very short period of time. Also, if one of our patents is found to be invalid by judicial, court or administrative 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, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio ~~have been~~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 ~~these~~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.

Our biologic products, including BeneFIX, ReFacto, Xyntha, Bavencio, Prevnar 13/Prevenar 13 and Enbrel (we market Enbrel outside the U.S. and Canada), may face in the future, or already face, competition from biosimilars (also referred to as follow-on biologics). If competitors are able to obtain marketing approval for biosimilars referencing our biologic products, our biologic products may become subject to competition from these biosimilars, with attendant competitive pressure, and price reductions could follow. For example, Enbrel faces ongoing biosimilar competition in most developed Europe markets. The expiration or successful challenge of applicable patent rights could trigger this competition, assuming any relevant regulatory exclusivity period has expired.

~~We expect~~For additional information, including the patent rights we consider most significant in relation to ~~lose exclusivity for various other products~~our business as a whole, together with the year in ~~various markets over the next few years, including, among others, Viagra in the U.S. in December 2017 and the expiration of~~which the basic product patent ~~for Lyrica in the U.S. in December 2018.~~

In March 2010, the ACA was enacted in the U.S. For additional information, see the “Government Regulation and Price Constraints” section in Part I, Item 1, “Business” of our ~~2016~~2018 Form 10-K.



We recorded the following amounts as a result of the U.S. Healthcare Legislation:
	Three Months Ended				Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Reduction to Revenues, related to the Medicare “coverage gap” discount provision	$	307	$	217	$	596	$	435
Selling, informational and administrative expenses, related to the fee payable to the federal government (which is not deductible for U.S. income tax purposes), based on our prior-calendar-year share relative to other companies of branded prescription drug sales to specified government programs. The first nine months of 2018 also reflected a favorable true-up associated with the updated 2017 invoice received from the federal government, which reflected a lower expense than what was previously estimated for invoiced periods.	52		43		173		118

In response to the evolving U.S. and global healthcare spending landscape, we continue to work with health authorities, health technology assessment and quality measurement bodies and major U.S. payers throughout the product-development process to better understand how these entities value our compounds and products. Further, we seek to develop stronger internal capabilities focused on demonstrating the value of the medicines that we discover or develop, register and manufacture, by recognizing patterns of usage of our medicines and competitor medicines along with patterns of healthcare costs.

In 2017 and 2018, China’s government negotiated with companies to add approximately 60 innovative drugs (mainly oncology medicines) to the National Reimbursement Drug List. Prices for drugs were reduced dramatically through this government-led process. While these negotiations included a path to access for companies, market access is not assured. In addition, significant questions about the processes and negotiations for provincial tendering remain, as well as the need for multi-layered negotiations across provincial, municipal and hospital levels.~~2016 UN High Level Panel Report on Access to Medicines~~ ~~and~~ ~~2017 OECD Report on New Health Technologies––Managing Access, Value and Sustainability). Government adoption of these recommendations may lead to additional pricing pressures.~~

healthcare cost by driving utilization of generics that have passed QCE, which has resulted in dramatic price cuts for off-patent medicines.

Upjohn and ~~global healthcare spending landscape, we are continuing~~most off-patent originators were not successful in the first bidding process, which was finalized in December 2018 and implemented in March 2019, and those contracts went to ~~work~~local generic companies. The first bidding process resulted in significant price cuts by the successful bidders, with ~~health authorities, health technology assessment and quality measurement bodies and major U.S. payers throughout~~some reducing the ~~product-development process~~price of their products by as much as 96%, as companies attempted to ~~better understand how these entities value our compounds and products. Further, we are seeking to develop stronger internal capabilities focused on demonstrating the value~~secure volumes of the ~~medicines~~Chinese pharmaceutical market. The drugs which lost the bidding were also requested to reduce their selling price up to 30% based on the price difference with the successful bidder. In July 2019, China’s government announced a plan for a nationwide expansion of the volume-based procurement model, which was finalized in September 2019 and will be implemented in late 2019 or early 2020. The expanded model allows for as many as three successful bidders and includes an additional 25 provinces and regions, and applies to certain drugs that are purchased for public hospitals as well as some military and private medical institutions. Our Upjohn business unit and most originator brands were not successful in the bidding process for this nationwide expansion, and those contracts mostly went to local Chinese generic companies. The QCE-qualified generic makers of atorvastatin and amlodipine bid aggressively, lowering prices even further from the March 2019 tender. Our Upjohn business unit continues to take steps to mitigate the revenue impact of these initiatives but anticipates that they will continue to affect our Upjohn business in China going forward. We expect to utilize our presence in the retail channel and tendering capabilities to mitigate some of these pricing pressures. In addition, we ~~discover or develop, register~~believe that our geographic expansion to under-penetrated and ~~manufacture, by recognizing patterns of usage of our~~lower-tiered cities and counties and additional focus on non-tendered products will increase sales volumes in greater China and partially mitigate pressures from QCE.

These and other industry-wide factors that may affect our businesses should be considered along with information presented in the “Forward-Looking Information and Factors That May Affect Future Results” section of this MD&A and in Part I, Item 1A, “Risk Factors” of our ~~2016~~2018 Form ~~10-K and Part II, Item 1A, "Risk Factors," of this Quarterly Report on Form 10-Q.~~10-K.

We believe that our medicines provide significant value for both healthcare providers and patients, not only from the improved treatment of diseases but also from a reduction in other healthcare costs, such as emergency room or hospitalization costs, as well as improvements in health, wellness and productivity. We continue to actively engage in dialogues about the value of our medicines and how we can best work with patients, physicians and payers to prevent and treat disease and improve outcomes.

In the fourth quarter of 2018, we took steps to simplify the organization, increase spans of control and reduce organizational layers, which impacted some managerial roles and responsibilities. We also offered enhancements to certain employee benefits for a short period of time. The expenses related to these enhancements for certain employee benefits did not have a material impact on our 2018 results of operations and any expected future impact of these enhancements are reflected in the totality of our annual guidance for 2019. To partially offset the incremental cost increases of increased R&D investments and marketing activities in future periods, we expect to generate cost reduction opportunities, particularly in indirect SI&A.

WeAs discussed under “Organizing for Growth”, at the beginning of our 2019 fiscal year, we began to manage our commercial operations through ~~two distinct~~a new global structure consisting of three business ~~segments: Pfizer Innovative Health (IH)~~segments––Biopharma, Upjohn and ~~Pfizer Essential Health (EH). The IH and EH operating segments are~~through July 31, 2019, Consumer Healthcare, 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 ~~for certain~~WRDM. These services include IPR&D projects for new investigational products and additional indications for in-line ~~products that generally have achieved proof-of-concept.~~products. Each business has a geographic footprint across developed and emerging markets.

WeIn 2019, we continue to strengthen our global R&D organization and pursue strategies intended to improve innovation and overall productivity in R&D to achieve a sustainable pipeline that ~~will~~is positioned to deliver value in the near term and over time.

Generally, we do not disaggregate total R&D expense by development phase or by therapeutic area since, as described above, we do not manage a significant portion of our R&D operations by development phase or by therapeutic area. Further, as we are able to adjust a significant portion of our spending quickly, as conditions change, we believe that any prior-period information about R&D expense by development phase or by therapeutic area would not necessarily be representative of future spending.

While a significant portion of R&D is done internally, we continue to seek out promising chemical and biological lead molecules and innovative technologies developed by third parties to incorporate into our discovery and development processes or projects, as well as our product lines, by entering into ~~collaborations, alliances~~collaboration, alliance and license agreements with other companies, as well as leveraging acquisitions and equity- or debt-based investments. These agreements enable us to co-develop, license or acquire promising compounds, technologies or capabilities. We also enter into agreements pursuant to which a third party agrees to fund a portion of the development costs of one or more of our pipeline products in exchange for rights to receive potential milestone payments, revenue sharing payments, profit sharing payments and/or royalties. Collaboration, alliance, license and

We remain focused on achieving an appropriate cost structure for ~~the Company.~~our company. For additional information about our cost-reduction and productivity initiatives, see the “Costs and Expenses––Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives” section of this MD&A and Notes to Condensed Consolidated Financial Statements––Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives.



Pfizer’s updated ~~2017~~2019 financial guidance is presented below^(a),^(b):
Revenues	$~~52.4~~51.2 to ~~$53.1~~$52.2 billion
	(previously ~~$52.0~~$50.5 to ~~$54.0~~$52.5 billion)
Adjusted cost of sales as a percentage of revenues	~~20.0%~~19.3% to ~~20.5%~~19.8%
	(previously ~~20.0%~~20.1% to ~~21.0%~~21.1%)
Adjusted selling, informational and administrative expenses	$~~14.0~~13.5 to ~~$14.5~~$14.0 billion
	(previously ~~$13.7~~$13.0 to ~~$14.7~~$14.0 billion)
Adjusted research and development expenses	$~~7.5~~7.7 to ~~$7.8~~$8.1 billion
	(previously ~~$7.5~~$7.9 to ~~$8.0~~$8.3 billion)
Adjusted other (income)/deductions	Approximately ~~$500~~$200 million of income
~~(previously approximately $200 million of income)~~
Effective tax rate on adjusted income	Approximately ~~23.0%~~16.0%
Adjusted diluted EPS	$~~2.58~~2.94 to ~~$2.62~~$3.00
	(previously ~~$2.54~~$2.76 to ~~$2.60)~~$2.86)

The following tables provide worldwide revenues by operating segment and by geography:
Three Months Ended
Worldwide U.S. International World-wide U.S. Inter-national
(MILLIONS OF DOLLARS) Oct 1,
2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
% Change in Revenues
Operating Segments^(a):

IH $ 8,118
$ 7,332
$ 4,777
$ 4,244
$ 3,341
$ 3,088
11
13
8
EH 5,050
5,712
1,756
2,286
3,294
3,426
(12 ) (23 ) (4 )
Total revenues $ 13,168
$ 13,045
$ 6,534
$ 6,530
$ 6,634
$ 6,515
1
—
2

Nine Months Ended
Worldwide U.S. International World-wide U.S. Inter-national
(MILLIONS OF DOLLARS) Oct 1, 2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
Oct 1, 2017
Oct 2, 2016
% Change in Revenues
Operating Segments^(a):

IH $ 23,204
$ 21,471
$ 13,708
$ 12,308
$ 9,496
$ 9,163
8
11
4
EH 15,639
17,725
5,808
7,253
9,831
10,472
(12 ) (20 ) (6 )
Total revenues $ 38,843
$ 39,196
$ 19,516
$ 19,561
$ 19,327
$ 19,636
(1 ) —
(2 )



The following table provides the components of the condensed consolidated statements of income:
	Three Months Ended								Nine Months Ended
(MILLIONS OF DOLLARS, EXCEPT PER COMMON SHARE DATA)	September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change
Revenues	$	12,680		$	13,298		(5	)	$	39,062		$	39,670		(2	)

Cost of sales^(a)	2,602			2,694			(3	)	7,611			8,173			(7	)
% of revenues	20.5		%	20.3		%			19.5		%	20.6		%

Selling, informational and administrative expenses^(a)	3,260			3,494			(7	)	10,110			10,448			(3	)
% of revenues	25.7		%	26.3		%			25.9		%	26.3		%

Research and development expenses^(a)	2,283			2,008			14		5,827			5,549			5
% of revenues	18.0		%	15.1		%			14.9		%	14.0		%

Amortization of intangible assets	1,212			1,253			(3	)	3,578			3,640			(2	)
% of revenues	9.6		%	9.4		%			9.2		%	9.2		%

Restructuring charges and certain acquisition-related costs	365			85			*		295			172			72
% of revenues	2.9		%	0.6		%			0.8		%	0.4		%

(Gain) on completion of Consumer Healthcare JV transaction	(8,087		)	—			*		(8,087		)	—			*
% of revenues	63.8		%	—			*		20.7		%	—			*

Other (income)/deductions––net	319			(414		)	*		537			(1,143		)	*
Income from continuing operations before provision for taxes on income	10,727			4,177			*		19,190			12,831			50
% of revenues	84.6		%	31.4		%			49.1		%	32.3		%

Provision for taxes on income	3,047			66			*		2,566			1,270			*
Effective tax rate	28.4		%	1.6		%			13.4		%	9.9		%

Income from continuing operations	7,680			4,111			87		16,625			11,562			44
% of revenues	60.6		%	30.9		%			42.6		%	29.1		%

Discontinued operations––net of tax	4			11			(66	)	4			10			(61	)

Net income before allocation to noncontrolling interests	7,684			4,122			86		16,628			11,571			44
% of revenues	60.6		%	31.0		%			42.6		%	29.2		%

Less: Net income attributable to noncontrolling interests	4			8			(56	)	19			25			(23	)
Net income attributable to Pfizer Inc.	$	7,680		$	4,114		87		$	16,609		$	11,546		44
% of revenues	60.6		%	30.9		%			42.5		%	29.1		%

Earnings per common share––basic:
Income from continuing operations attributable to Pfizer Inc. common shareholders	$	1.38		$	0.70		98		$	2.98		$	1.96		52
Net income attributable to Pfizer Inc. common shareholders	$	1.38		$	0.70		98		$	2.98		$	1.96		52

Earnings per common share––diluted:
Income from continuing operations attributable to Pfizer Inc. common shareholders	$	1.36		$	0.69		98		$	2.92		$	1.92		52
Net income attributable to Pfizer Inc. common shareholders	$	1.36		$	0.69		98		$	2.92		$	1.92		52



The following tables provide worldwide revenues by operating segment and geography:
	Three Months Ended
	Worldwide				U.S.				International				World-wide		U.S.		Inter-national
(MILLIONS OF DOLLARS)	Sept. 29, 2019		Sept. 30, 2018		Sept. 29, 2019		Sept. 30, 2018		Sept. 29, 2019		Sept. 30, 2018		% Change in Revenues
Operating Segments^(a):
Biopharma	$	10,108	$	9,422	$	5,218	$	4,684	$	4,890	$	4,738	7		11		3
Upjohn	2,195		3,036		509		1,231		1,686		1,805		(28	)	(59	)	(7	)
Consumer Healthcare	377		839		124		445		253		394		(55	)	(72	)	(36	)
Total revenues	$	12,680	$	13,298	$	5,850	$	6,361	$	6,830	$	6,937	(5	)	(8	)	(2	)

	Nine Months Ended
	Worldwide				U.S.				International				World-wide		U.S.		Inter-national
(MILLIONS OF DOLLARS)	Sept. 29, 2019		Sept. 30, 2018		Sept. 29, 2019		Sept. 30, 2018		Sept. 29, 2019		Sept. 30, 2018		% Change in Revenues
Operating Segments^(a):
Biopharma	$	28,887	$	27,737	$	14,481	$	13,582	$	14,406	$	14,155	4		7		2
Upjohn	8,077		9,302		2,891		3,921		5,186		5,381		(13	)	(26	)	(4	)
Consumer Healthcare	2,098		2,631		988		1,357		1,110		1,273		(20	)	(27	)	(13	)
Total revenues	$	39,062	$	39,670	$	18,360	$	18,861	$	20,701	$	20,810	(2	)	(3	)	(1	)



The following table provides information about revenue deductions:
	Three Months Ended				Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Medicare rebates^(a)	$	295	$	443	$	1,080	$	1,266
Medicaid and related state program rebates^(a)	503		502		1,531		1,500
Performance-based contract rebates^{(a), (b)}	923		854		2,784		2,467
Chargebacks^(c)	1,328		1,654		4,252		4,850
Sales allowances^(d)	1,350		1,448		4,164		4,142
Sales returns and cash discounts	262		358		1,065		1,067
Total^(e)	$	4,660	$	5,259	$	14,875	$	15,292

The following table provides information about revenue deductions:
Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
October 1,
2017
October 2,
2016
Medicare rebates^(a)
$ 355
$ 285
$ 931
$ 777
Medicaid and related state program rebates^(a)
439
338

1,335
1,073
Performance-based contract rebates^{(a), (b)}
773
629

2,321
1,854
Chargebacks^(c)
1,608
1,465

4,585
4,318
Sales allowances^(d)
1,419
1,177

3,718
3,268
Sales returns and cash discounts 329
356
1,025
1,044
Total^(e)
$ 4,923
$ 4,251
$ 13,916
$ 12,334


^(a)	Rebates are product-specific and, therefore, for any given year are impacted by the mix of products sold.

^(b)

Performance-based contract rebates include contract rebates with MCOs within the U.S., including health maintenance organizations and PBMs, who receive rebates based on the achievement of contracted performance terms and claims under these contracts. Outside the U.S., performance-based contract rebates include rebates to wholesalers/distributors based on achievement of contracted performance for specific products or sales milestones.


^(c)	Chargebacks primarily represent reimbursements to U.S. wholesalers for honoring contracted prices to third parties.


^(d)	Sales allowances primarily represent price reductions that are contractual or legislatively mandated outside the U.S., discounts and distribution fees.

^(e)

For the three months ended ~~October 1, 2017,~~September 29, 2019, associated with the following segments: IHBiopharma ($~~2.4~~3.0 billion), Upjohn ($1.6 billion) and EHOther ($~~2.5~~0.1 billion). For the three months ended ~~October 2, 2016,~~September 30, 2018, associated with the following segments: IHBiopharma ($~~1.8~~2.6 billion);, Upjohn ($2.5 billion) and EHOther ($~~2.4~~0.2 billion). For the nine months ended ~~October 1, 2017,~~September 29, 2019, associated with the following segments: IHBiopharma ($~~6.4~~8.7 billion), Upjohn ($5.8 billion) and EHOther ($~~7.5~~0.4 billion). For the nine months ended ~~October 2, 2016,~~September 30, 2018, associated with the following segments: IHBiopharma ($~~5.1~~7.4 billion), Upjohn ($7.4 billion) and EHOther ($~~7.2~~0.5 billion).

Total revenue deductions for the third quarter of ~~2017~~2019 ~~increased 16%~~decreased 11% compared to the third quarter of ~~2016~~2018, and total revenue deductions for the first nine months of ~~2017~~2019 ~~increased 13%~~decreased 3%, compared to the first nine months of ~~2016~~2018, primarily as a result of:

a decrease in chargebacks, primarily related to Upjohn products, including Viagra and Lyrica; and

a decrease in Medicare rebates, driven by a significant decrease in Lyrica sales in the U.S., due to multi-source generic competition that began in July 2019,

partially offset by:

an increase in performance-based contract rebates, primarily ~~due to sales to managed care customers~~ in the U.S.~~, as well as higher rebates in~~ due to increased sales of certain ~~markets outside the U.S.;~~

~~an increase in sales allowances primarily in markets outside the U.S.;~~

~~an increase in chargebacks from certain IH~~Biopharma products, ~~partially~~slightly offset by ~~decreases across several EH products; and~~

~~an increase in Medicaid and related state program rebates, primarily as a result of updated estimates of sales related to these programs.~~decreased Lyrica sales.

~~Our~~For information on 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 $4.6 billion as~~including the balance sheet classification of ~~October 1, 2017,~~these accruals, see Notes to Condensed Consolidated Financial Statements––Note 1C. Basis of ~~which (i) approximately $2.5 billion represents accrued rebates included in~~ Presentation and Significant Accounting Policies: Revenues and Trade Accounts Receivable~~Other current liabilities,~~ ~~and (ii) approximately $2.1 billion represents other accruals included in~~ ~~Other current liabilities~~ ~~($472 million),~~ ~~Other noncurrent liabilities~~ ~~($344 million)and against~~ ~~Trade accounts receivable, less allowance for doubtful accounts~~ ~~($1.3 billion), in our condensed consolidated balance sheet.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$4.3 billion as of~~ ~~December 31, 2016, of which (i) approximately $2.3 billion represents accrued rebates included in~~ ~~Other current liabilities, and (ii) approximately $2.0 billion represents other accruals included in~~ ~~Other current liabilities~~ ~~($509 million),~~ ~~Other noncurrent liabilities~~ ~~($357 million) and against~~ ~~Trade accounts receivable, less allowance for doubtful accounts~~ ~~($1.2 billion), in our condensed consolidated balance sheet.~~.

Revenues––Selected Product Discussion

~~Revenues—Major Products~~

The following table provides revenue information for several of our major products. As described in Note 1A, acquisitions and divestitures have impacted our results of operations in 2017 and 2016.
Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS)
% Change^(a)

% Change^(a)
PRODUCT PRIMARY INDICATIONS OR CLASS Oct 1,
2017
Total
Oper.
Oct 1,
2017
Total
Oper.
TOTAL REVENUES $ 13,168
1
1
$ 38,843
(1 ) —
PFIZER INNOVATIVE HEALTH (IH)^(b)
$ 8,118
11
11
$ 23,204
8
9
Internal Medicine $ 2,455
9
10
$ 7,245
10
11
Lyrica IH^(c)
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury 1,150
10
11
3,382
9
9
Eliquis alliance revenues and direct sales Atrial fibrillation, deep vein thrombosis, pulmonary embolism 644
43
43
1,813
48
49
Chantix/Champix An aid to smoking cessation treatment in adults 18 years of age or older 240
21
22
727
15
15
Viagra IH^(d)
Erectile dysfunction 206
(31 ) (31 ) 711
(21 ) (21 )
BMP2 Development of bone and cartilage 79
24
24
198
13
13
Toviaz Overactive bladder 62
4
5
187
(2 ) —
All other Internal Medicine Various 75
(41 ) (41 ) 228
(31 ) (31 )
Vaccines $ 1,649
1
—
$ 4,385
(4 ) (4 )
Prevnar 13/Prevenar 13 Vaccines for prevention of pneumococcal disease 1,522
(1 ) (1 ) 4,069
(5 ) (5 )
FSME/IMMUN-TicoVac Tick-borne encephalitis vaccine 43
31
29
119
17
19
All other Vaccines Various 85
17
16
197
14
17
Oncology $ 1,616
46
46
$ 4,551
42
43
Ibrance Advanced breast cancer 878
60
59
2,410
61
62
Sutent Advanced and/or metastatic RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor 276
6
6
805
(2 ) (1 )
Xalkori ALK-positive and ROS1-positive advanced NSCLC 146
4
4
442
6
8
Xtandi alliance revenues Advanced prostate cancer 150
*
*
422
*
*
Inlyta Advanced RCC 84
(12 ) (10 ) 256
(16 ) (14 )
Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 57

34

35
163
35
36
All other Oncology Various 26
74
76
54
10
11
Inflammation & Immunology (I&I) $ 1,000
4
4
$ 2,863
(1 ) —
Enbrel (Outside the U.S. and Canada) Rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 613
(13 ) (13 ) 1,818
(17 ) (16 )
Xeljanz Rheumatoid arthritis 348
48
49
935
44
44
Eucrisa Mild to moderate atopic dermatitis (eczema) 15
*
*
33
*
*
All other I&I Various 23
(3 ) 1
78
35
36
Rare Disease $ 569
(3 ) (3 ) $ 1,637
(7 ) (6 )
BeneFIX Hemophilia 151
(14 ) (14 ) 453
(17 ) (16 )
Refacto AF/Xyntha Hemophilia 140
—
(1 ) 409
—
3
Genotropin Replacement of human growth hormone 136
(7 ) (6 ) 375
(12 ) (10 )
Somavert Acromegaly 65
11
10
182
6
7
All other Rare Disease Various 77
21
21
218
(1 ) 1
Consumer Healthcare $ 829
4
4
$ 2,522
3
3
PFIZER ESSENTIAL HEALTH (EH)^(e)
$ 5,050
(12 ) (11 ) $ 15,639
(12 ) (11 )
Legacy Established Products (LEP)^(f)
$ 2,681
(1 ) —
$ 7,995
(5 ) (3 )
Lipitor Reduction of LDL cholesterol 491
16
18
1,341
4
6
Premarin family Symptoms of menopause 238
(2 ) (2 ) 711
(5 ) (5 )
Norvasc Hypertension 226
(5 ) (3 ) 684
(4 ) (1 )
EpiPen Epinephrine injection used in treatment of life-threatening allergic reactions 82
(25 ) (25 ) 253
(16 ) (15 )
Xalatan/Xalacom Glaucoma and ocular hypertension 83
(9 ) (8 ) 241
(12 ) (12 )
Effexor Depression and certain anxiety disorders 76
8
9
215
4
5
Zoloft Depression and certain anxiety disorders 78
9
11
215
(6 ) (4 )
Zithromax Bacterial infections 61
10
11
202
(1 ) 3
Relpax Symptoms of migraine headache 50
(39 ) (39 ) 193
(22 ) (22 )
Xanax Anxiety disorders 58
5
4
164
1
2
All other LEP Various 1,237
(2 ) (1 ) 3,776
(5 ) (4 )
Sterile Injectable Pharmaceuticals (SIP)^(g)
$ 1,273
(13 ) (12 ) $ 4,270
(5 ) (4 )
Medrol Steroid anti-inflammatory 109
7
7
352
7
7
Sulperazon Treatment of infections 114
11
13
345
14
18
Fragmin Slows blood clotting 79
(1 ) (1 ) 221
(8 ) (6 )
Tygacil Tetracycline class antibiotic 60
(12 ) (12 ) 192
(5 ) (5 )
Precedex Sedation agent in surgery or intensive care 51
(21 ) (20 ) 182
(8 ) (9 )
All other SIP Various 860
(18 ) (17 ) 2,977
(7 ) (6 )

Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS)
% Change^(a)

% Change^(a)
PRODUCT PRIMARY INDICATIONS OR CLASS Oct 1,
2017
Total
Oper.
Oct 1,
2017
Total
Oper.
Peri-LOE Products^(h)
$ 794
(22 ) (22 ) $ 2,398
(26 ) (24 )
Celebrex Arthritis pain and inflammation, acute pain 212
9
11
564
3
4
Lyrica EH^(c)
Epilepsy, neuropathic pain and generalized anxiety disorder 134
(30 ) (31 ) 428
(31 ) (29 )
Vfend Fungal infections 97
(31 ) (29 ) 305
(33 ) (32 )
Viagra EH^(d)
Erectile dysfunction 102
14
16
285
—
3
Pristiq Depression 69
(61 ) (61 ) 230
(58 ) (58 )
Zyvox Bacterial infections 68
(28 ) (27 ) 220
(34 ) (33 )
Revatio Pulmonary arterial hypertension 58
(20 ) (20 ) 189
(11 ) (11 )
All other Peri-LOE Products Various 55
(19 ) (17 ) 176
(17 ) (15 )
Biosimilars⁽ⁱ⁾
Various $ 141
70
67
$ 367
61
63
Inflectra/Remsima Inflammatory diseases 112
*
*
284
*
*
All other Biosimilars Various 28
(16 ) (18 ) 82
(15 ) (14 )
Pfizer CentreOne^(j)
$ 161
3
3
$ 514
(5 ) (5 )
Hospira Infusion Systems (HIS)^(k)
Various $ —
*
*
$ 97
(89 ) (89 )
Total Lyrica^(c)
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury $ 1,285
4
5
$ 3,810
2
3
Total Viagra^(d)
Erectile dysfunction $ 308
(20 ) (20 ) $ 996
(16 ) (15 )
Total Alliance revenues Various $ 741
77
78
$ 2,112
83
84


^(a)	~~As compared to the three and nine months ended~~ ~~October 2, 2016~~.

^(b)

The IH business encompasses Internal Medicine, Vaccines, Oncology, Inflammation & Immunology, Rare Disease and Consumer Healthcare. Through December 31, 2016, includes Duavive/Duavee and Viviant (recorded in All other Internal Medicine in 2016), which were transferred from Innovative Health to Essential Health effective January 1, 2017 (recorded in All other LEP (EH) beginning January 1, 2017), in order to align these products with our management of the women’s health portfolio within EH.


^(c)	Lyrica revenues from all of Europe, Russia, Turkey, Israel and Central Asia countries are included in Lyrica EH. All other Lyrica revenues are included in Lyrica IH. Total Lyrica revenues represent the aggregate of worldwide revenues from Lyrica IH and Lyrica EH.


^(d)	Viagra revenues from the U.S. and Canada are included in Viagra IH. All other Viagra revenues are included in Viagra EH. Total Viagra revenues represent the aggregate of worldwide revenues from Viagra IH and Viagra EH.


^(e)	The EH business encompasses Legacy Established Products, Sterile Injectable Pharmaceuticals, Peri-LOE Products, Biosimilars, Pfizer CentreOne and HIS (through February 2, 2017) and includes all legacy Hospira commercial operations.

^(f)

Legacy Established Products primarily include products that have lost patent protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE Products). Effective January 1, 2017, All other LEP includes Duavive/Duavee and Viviant, which were transferred from Innovative Health (recorded in All other Internal Medicine (IH) in 2016), in order to align these products with our management of the women’s health portfolio within EH. See note (b) above.


^(g)	~~Sterile Injectable Pharmaceuticals include generic injectables and proprietary specialty injectables (excluding Peri-LOE Products).~~


^(h)	Peri-LOE Products include products that have recently lost or are anticipated to soon lose patent protection. These products include: Lyrica in Europe, Russia, Turkey, Israel and Central Asia; Viagra in all countries (excluding the U.S. and Canada); and worldwide revenues for Celebrex, Pristiq, Zyvox, Vfend, Revatio and Inspra.


⁽ⁱ⁾	Biosimilars include Inflectra/Remsima (biosimilar infliximab) in the U.S. and certain international markets, Nivestim (biosimilar filgrastim) in certain European, Asian and Africa/Middle Eastern markets and Retacrit (biosimilar epoetin zeta) in certain European and Africa/Middle Eastern markets.


^(j)	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.


^(k)	HIS (through February 2, 2017) includes Medication Management Systems products composed of infusion pumps and related software and services, as well as IV Infusion Products, including large volume IV solutions and their associated administration sets.


*	~~Indicates calculation not meaningful.~~

The tables below provide worldwide revenues and revenues by geography, for selected products. References to total change pertain to period-over-period growth rates that include foreign exchange. The difference between the total change and operational change represents the impact of foreign exchange. Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.

~~Revenues––Selected Product Discussion~~ An asterisk (*) indicates the calculation is not meaningful or results are equal to or greater than 100%.

~~The information included in “Revenues—Selected Product Discussion” below should be read in conjunction with the revenue information included in the “Revenues—Major Products” section.~~


•	Prevnar 13/Prevenar 13 ~~(IH) worldwide revenues decreased operationally~~(Biopharma):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	1,008	$	1,089	(7	)			$	2,498	$	2,597	(4	)
International	595		571		4		7		1,770		1,694		4		9
Worldwide revenues	$	1,603	$	1,660	(3	)	(3	)	$	4,268	$	4,290	(1	)	1

The declines in the third quarter and ~~first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~In the U.S., revenues for Prevnar 13 decreased 4% in the third quarter of~~ ~~2017~~ ~~and 9% in the~~ first nine months of ~~2017~~2019~~, compared to~~ in the ~~same periods in~~ ~~2016~~,U.S. primarily ~~due to~~reflect lower government purchases for the pediatric indication as well as the continued decline in revenues for the ~~Adult~~adult indication ~~in the U.S.~~ due to a high initial capture rate of the eligible population following its successful fourth-quarter 2014 launch, which resulted in a smaller remaining “catch up” opportunity (i.e., the opportunity to reach adults ~~age~~aged 65 years and older who have not been previously vaccinated with Prevnar 13) compared to the prior-year period, partially offset by growth from the pediatric indication. Given the success since the launch of the Adult indication, approximately 53% of the eligible patient pool 65 years and above in the U.S. has already been vaccinated. While the remaining eligible population is large, this cohort is much more difficult to capture..

~~Internationally, revenues for Prevenar 13 increased 5% operationally~~The operational growth in the third quarter of ~~2017~~2019 ~~and 3% operationally~~internationally was mostly due to higher volumes reflecting continued uptake following the 2017 launch in China, partially offset by the unfavorable impact of timing associated with government purchases for the pediatric indication in certain emerging markets.

The operational growth in the first nine months of ~~2017~~2019~~, compared to the same periods in~~ ~~2016~~, internationally was primarily due to higher volumes resulting from increased shipments associated with Gavi, the ~~favorable overall impact of timing of government purchases in certain emerging markets~~Vaccine Alliance, and higher volumes reflecting continued uptake following the second quarter 2017 launch ~~of Prevenar 13~~ in China, ~~for~~partially offset by the ~~pediatric indication. Foreign exchange had a de minimis impact on international revenues~~non-recurrence of volumes associated with an adult national immunization program in ~~the third~~first quarter of 2018.~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

In 2014, the ACIP voted to recommend Prevnar 13 for routine use to help protect adults aged 65 years and older against pneumococcal disease, which for adults includes pneumonia caused by the 13 pneumococcal serotypes included in the vaccine. These ACIP recommendations were subsequently approved by the directors at the CDC and U.S. Department of Health and Human Services, and were published in the Morbidity and Mortality Weekly Report in September 2014 by the CDC. ~~As with other vaccines, the~~The CDC regularly monitors the impact of vaccination and reviews the ~~recommendations; in this case, however,~~recommendations. During the February 2019 ACIP meeting, the CDC ~~announced formally~~presented a formal evaluation of evidence to the recommendation framework (grading) for ACIP’s input. On June 26, 2019, the ACIP voted to revise the pneumococcal vaccination guidelines and recommend Prevnar 13 for adults 65 and older based on the shared clinical decision making of the provider and patient, which means the decision to vaccinate should be made at the individual level between health care providers and their patients, maintaining reimbursement. This revised recommendation reaffirms that ~~it will conduct this review in 2018. A potential adverse change~~there remains vaccine preventable pneumococcal disease in the ~~ACIP~~population of adults 65 years or older, which may be prevented through direct vaccination, and we expect the ACIP’s provisional recommendation ~~could negatively~~to be approved by the directors at the CDC and U.S. Department of Health and Human Services, and is expected to be published by the CDC in the Morbidity and Mortality Weekly Report in the fourth quarter of 2019. We do not expect the ACIP’s latest recommendation will have a significant impact ~~future~~on Prevnar 13 ~~revenues. Currently, we are working with a number~~revenues for the remainder of ~~U.S. investigators to monitor the proportion of community-acquired pneumonia caused by the serotypes included in Prevnar 13 and continue to observe trends.~~

•

~~Lyrica~~ (EH (revenues from all of Europe, Russia, Turkey, Israel and Central Asia)/IH (revenues from all other geographies)) worldwide revenues increased operationally in the third quarter and the first nine months of ~~2017, compared to the same periods in~~ ~~2016. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~In the U.S., Lyrica revenues increased 12% in the third quarter of~~ ~~2017~~ ~~and 10% in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, driven by sustained demand and positive price impact.~~

~~Internationally, Lyrica revenues decreased 8% operationally in the third quarter of~~ ~~2017~~ ~~and 10% operationally in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, primarily due to losses of exclusivity in developed Europe markets. Foreign exchange had an unfavorable impact on international revenues in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~Lyrica revenues in our IH segment increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily driven by sustained demand and positive price impact in the U.S. Foreign exchange had an unfavorable impact on Lyrica IH revenues in the third quarter and a de minimis impact in the first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

~~In our EH segment, worldwide revenues from Lyrica decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, due to losses of exclusivity in developed Europe markets. Foreign exchange had a favorable impact on Lyrica EH worldwide revenues in the third quarter of~~ ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.2019.

•

Ibrance ~~(IH) worldwide revenues, most of which were recorded in the U.S., increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~. The significant revenue growth reflects our scientific/clinical data, continued positive patient experience as well as Ibrance being the class leader among cyclin-dependent kinase inhibitors in major markets. Foreign exchange had a favorable impact on worldwide revenues in the third quarter of ~~2017~~ ~~and had an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Enbrel~~ ~~(IH, outside the U.S. and Canada) worldwide revenues, excluding the U.S. and Canada, decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily due to on-going biosimilar competition in most developed Europe markets, which is expected to continue. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter and an unfavorable impact in the first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Lipitor~~ ~~(EH) worldwide revenues increased operationally in the third quarter and the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter of~~ ~~2017~~ ~~and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. In the U.S., revenues increased more than 100% in the third quarter of~~ ~~2017~~ ~~and 11% in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, primarily due to favorable rebates.~~(Biopharma):

~~In our~~



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	832	$	708	18		$	2,405	$	2,178	10
International	451		317		42	48	1,273		807		58	70
Worldwide revenues	$	1,283	$	1,025	25	27	$	3,677	$	2,985	23	27

Operational growth in international markets ~~revenues increased 11% operationally~~reflects the continued strong uptake in ~~the third quarter of~~ ~~2017, compared to the same period in~~ ~~2016, driven by increased demand in China~~developed Europe and ~~certain Middle Eastern markets, partially offset by lower volumes in~~ Japan ~~and pricing pressures in China. International revenues increased 6% operationally in the first nine months of~~ ~~2017, compared to the same period in~~ ~~2016, driven by increased demand in China, partially offset by lower volumes in Japan and certain Middle Eastern markets,~~ as well as ~~pricing pressures~~ in ~~China. Foreign exchange had an unfavorable impact on international revenues~~certain emerging markets following launches. The growth in the ~~third quarter of~~ ~~2017~~U.S. was mainly driven by cyclin-dependent kinase (CDK) class share growth and ~~first nine months of~~ ~~2017, compared to the same periods~~Ibrance’s continued CDK class share leadership in ~~2016~~.its approved metastatic breast cancer indications.

•

~~Viagra~~ ~~(IH (U.S. and Canada revenues)/EH (all other revenues excluding U.S. and Canada)) worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. The decrease in the third quarter of~~ ~~2017, compared to the same period in~~ ~~2016, was primarily due to wholesaler destocking in advance of anticipated generic competition in the U.S. beginning in December 2017. The decrease in the first nine months of~~ ~~2017, compared to the same period in~~ ~~2016, was primarily due to lower market growth. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter of~~ ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~Revenues in the U.S. decreased 32% in the third quarter of~~ ~~2017, compared to the same period in~~ ~~2016, primarily due to wholesaler destocking in advance of anticipated generic competition beginning in December 2017. Revenues in the U.S. decreased 21% in the first nine months of~~ ~~2017, compared to the same period in~~ ~~2016, primarily due to lower market growth. International revenues increased 15% operationally in the third quarter of~~ ~~2017, compared to the same period in~~ ~~2016, primarily from demand in emerging markets, primarily in China. International revenues increased 3% operationally in the first nine months of~~ ~~2017, compared to the same period in~~ ~~2016~~, primarily from increased demand in emerging markets, mainly China and certain Middle Eastern markets, partially offset by price reductions in China. Foreign exchange had an unfavorable impact on international revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Xeljanz~~ ~~(IH) worldwide revenues increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. In the U.S., Xeljanz revenues increased 44% in the third quarter of~~ ~~2017~~ ~~and 40% in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily driven by increased adoption among rheumatologists, growing awareness among patients and improvements in payer access. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter of ~~2017~~ ~~and had a de minimis impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~BeneFIX and ReFacto AF/Xyntha~~ ~~(IH)––BeneFIX worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily as a result of erosion of market share in the U.S. and European countries due to increasing adoption of extended half-life treatment options as well as a price decrease in the U.K. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter and an unfavorable impact in the first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

~~ReFacto AF/Xyntha worldwide revenues decreased operationally in the third quarter of~~ ~~2017~~ ~~and increased operationally in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. The increase in the first nine months of~~ ~~2017~~ was largely due to increased product demand in certain emerging markets, partially offset by declines in developed markets in Europe and the U.S., primarily driven by increasing adoption of extended half-life treatment options. Foreign exchange had a favorable impact on worldwide revenues in the third quarter of ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Sutent~~ ~~(IH) worldwide revenues increased operationally in the third quarter of~~ ~~2017~~ ~~and decreased operationally in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. The increase in the third quarter of~~ ~~2017~~ ~~was primarily driven by increased performance in certain emerging markets. The decrease in the first nine months of~~ ~~2017~~ was primarily due to competitive pressure in the U.S. and Europe and cost containment measures in certain developed international markets, partially offset by increased performance in certain emerging markets. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter of ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.


•	~~Chantix/Champix~~ ~~(IH) worldwide revenues increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter of~~ ~~2017~~ ~~and a de minimis impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~In the U.S., Chantix revenues increased 27% in the third quarter of~~ ~~2017~~ ~~and 21% in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, primarily due to increased promotional activities~~, educating healthcare providers on updates to the Chantix label, including removal of the boxed warning, the addition of EAGLES safety and efficacy data, improved patient access and positive price impact.

•

~~The~~ ~~Premarin~~ ~~family of products (EH) worldwide revenues decreased operationally in the third quarter of~~ ~~2017~~ ~~and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. Revenues in the U.S. decreased 2% in the third quarter and 5% in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, primarily driven by lower volume, partially offset by a positive price impact.~~

~~Internationally, Premarin revenues decreased 8% operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily due to lower volumes in certain emerging markets and, with respect to the first nine months of 2017, the U.K., partially offset by price increases. Foreign exchange had a favorable impact on international revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Norvasc~~ ~~(EH) worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. Results for the third quarter of~~ ~~2017~~ ~~and first nine months of~~ ~~2017~~ were impacted by generic competition in Japan, lower volumes in certain Middle Eastern markets and pricing pressures in China, partially offset by demand in China. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.


•	~~Celebrex~~ ~~(EH) worldwide revenues increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016. The increase in the third quarter of~~ ~~2017, compared to the same period in~~ ~~2016, was primarily~~

driven by favorable rebates in the U.S. and increased demand in China, partially offset by generic competition in the U.S., lower volumes in certain Middle Eastern markets and pricing pressures in China and Mexico. The increase in the first nine months of ~~2017, compared to the same period in~~ ~~2016~~, was primarily driven by favorable rebates in the U.S. and volume growth in emerging markets, primarily China, partially offset by generic competition in the U.S. and most developed international markets and pricing pressures in China and Mexico. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Xalkori~~ ~~(IH) worldwide revenues increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, as a result of a steady increase in diagnostic rates for the ALK gene mutation across key markets outside the U.S., which has led to more patients being treated. This increase was partially offset by volume declines in the U.S. and Japan due to competitive pressure, partially mitigated by the March 2016 FDA approval of the supplemental NDA to treat patients with metastatic NSCLC whose tumors are ROS1-positive as detected by an FDA-approved test. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter of ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Inflectra/Remsima~~ ~~(EH) worldwide revenues increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, due to continued uptake in developed markets in Europe, and the U.S. launch in the fourth quarter of 2016, partially offset by pricing pressures in Europe. Foreign exchange had a favorable impact on worldwide revenues in the third quarter of ~~2017~~ ~~and an unfavorable impact in the first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

Inflectra uptake in the U.S. is being driven by a number of factors including Inflectra’s clinical data package, patient support programs, price and the access/reimbursement environment. To date, reimbursement coverage has been mixed. While we achieved 100% Medicare coverage, we have experienced access challenges among commercial payers where our lower priced product has not received access at parity to the innovator product and remains in a disadvantaged position despite recent price increases taken by the innovator product. We will look at all relevant factors impacting reimbursement given our extensive experience working with commercial payers to enable greater access for Inflectra. Additionally, in September 2017, Pfizer filed suit in the U.S. District Court for the Eastern District of Pennsylvania against Johnson & Johnson (J&J) alleging that J&J’s exclusionary contracts and other anticompetitive practices concerning Remicade® (infliximab) violate federal antitrust laws.

•

~~Inlyta~~ ~~(IH) worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, primarily due to increased competition in the U.S. and Europe, partially offset by performance in key emerging markets. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.


•	~~Pristiq~~ ~~(EH) worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, primarily due to loss of exclusivity in the U.S. in March 2017. Foreign exchange had a de minimis impact on worldwide revenues in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

~~Zyvox~~ ~~(EH) worldwide revenues decreased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~, due to generic competition in developed international markets and the U.S. and corresponding pricing pressures, partially offset by volume growth in China. Foreign exchange had an unfavorable impact on worldwide revenues in the third quarter and first nine months of ~~2017, compared to the same periods in~~ ~~2016~~.

•

~~Eucrisa~~ (IH) is approved in the U.S. for the treatment of mild to moderate atopic dermatitis for patients two years of age and older. The FDA approved Eucrisa on December 14, 2016, and Eucrisa was launched in the U.S. late in the first quarter of ~~2017~~. Eucrisa is a novel non-steroidal topical ointment and is the first topical prescription treatment for atopic dermatitis approved in over 10 years. Prescription volume continued to strengthen through the third quarter of 2017 supported by the launch of our direct-to-consumer campaign.


•	~~Alliance revenues~~ ~~(IH/EH) increased operationally in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016, mainly due to:~~


◦	~~an increase in~~ Eliquis alliance revenues ~~due to higher demand resulting from increased market penetration of novel oral anticoagulants~~ and ~~market share gains; and~~

◦

~~the inclusion of Xtandi alliance revenues of $150 million in the third quarter of~~direct sales ~~2017~~ ~~and $422 million in the first nine months of~~ ~~2017~~ in the U.S. resulting from the September 2016 acquisition of Medivation. We expect patient assistance program (which provides free medicines to patients) utilization as a percentage of total demand to normalize as we move into next year.

~~Foreign exchange had an unfavorable impact on alliance revenues in the third quarter and first nine months of~~ ~~2017, compared to the same periods in~~ ~~2016~~.

◦

(Biopharma): Eliquis ~~(IH)~~ has been jointly developed and is commercialized by Pfizer and BMS. Pfizer funds between 50% and 60% of all development costs depending on the study. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMS compensation based on a percentage of net sales. We have full commercialization rights in certain smaller markets. BMS supplies the product to us at cost, plus a percentage of the net sales to end-customers in these markets. Eliquis is part of the Novel Oral Anticoagulant (NOAC) market; the agents in this class were developed as alternative treatment options to warfarin in appropriate patients.



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	541	$	455	19		$	1,768	$	1,371	29
International	484		416		16	20	1,353		1,153		17	24
Worldwide revenues	$	1,025	$	870	18	20	$	3,121	$	2,524	24	27

The worldwide operational growth in the third quarter and first nine months of 2019 was mostly driven by continued increased adoption in non-valvular atrial fibrillation, as well as oral anti-coagulant market share gains, partially offset by a higher Medicare “coverage gap” discount provision on U.S. revenues compared to the prior year.


◦•	Lyrica (Upjohn):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	200	$	875	(77	)			$	1,924	$	2,643	(27	)
International	326		338		(4	)	(4	)	964		1,006		(4	)	(2	)
Worldwide revenues	$	527	$	1,213	(57	)	(57	)	$	2,888	$	3,649	(21	)	(20	)

The declines in the third quarter and first nine months of 2019 in the U.S. were due to the expected significantly lower volumes driven by multi-source generic competition which began in July 2019.

The operational decline internationally in the third quarter of 2019 was mostly due to generic competition in developed Europe markets. The operational decline internationally in the first nine months of 2019 was primarily due to generic competition in developed Europe markets and pricing pressures across international markets, partially offset by increased volumes in Japan attributable to growth in the orally dissolving tablet formulation, and increased volumes in Russia and China.


•	Xeljanz (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	444	$	332	34		$	1,201	$	964	25
International	154		100		54	61	434		256		69	83
Worldwide revenues	$	599	$	432	38	40	$	1,634	$	1,221	34	37

The growth in the U.S. in the third quarter and first nine months of 2019 was primarily due to continued growth in the RA indication driven by access improvements, and by volume growth from the launches of the UC and PsA indications in 2018, partially offset by higher rebating from new commercial contracts. The third quarter of 2019 also benefited from the non-recurrence of a one-time true-up payment in the prior year quarter for improved access with one customer.

The operational growth internationally in the third quarter and first nine months of 2019 was mainly driven by continued uptake in the RA indication in developed Europe, emerging markets, Japan and Canada as well as from the recent launch of the UC indication in certain developed markets.

In July 2019, the FDA updated the U.S. prescribing information for Xeljanz to include two additional boxed warnings as well as changes to the indication and dosing for UC. These updates were based on the FDA’s review of data from the ongoing post-marketing requirement RA study A3921133. While we expect these updates to have an impact on prescribing, we expect Xeljanz to continue to grow globally across all indications due to improved access and reimbursement and due to the high unmet need for these disease states. See the “Analysis of Condensed Consolidated Statements of Income—Product Development—Biopharmaceuticals” section of this MD&A.


•	Lipitor (Upjohn):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	25	$	25	1				$	76	$	86	(12	)
International	451		482		(6	)	(3	)	1,430		1,453		(2	)	4
Worldwide revenues	$	476	$	507	(6	)	(3	)	$	1,506	$	1,539	(2	)	3

The worldwide operational decline in the third quarter of 2019 was primarily driven by pricing pressures in China resulting from the March 2019 government implementation of the VBP in certain cities, discontinued sales in Saudi Arabia and lower volumes in Japan, partially offset by volume growth and geographic expansion in provinces in China where the VBP has not yet been implemented. The worldwide operational growth in the first nine months of 2019 was mostly due to overall increased demand in China in the first quarter of 2019 and continued geographic expansion during the third quarter in provinces where the VBP program has not yet been implemented, partially offset by pricing pressures in China resulting from the VBP implementation in certain cities and discontinued sales in Saudi Arabia.


•	Enbrel (Biopharma, outside the U.S. and Canada):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	—	$	—	—				$	—	$	—	—
International	415		531		(22	)	(19	)	1,285		1,589		(19	)	(13	)
Worldwide revenues	$	415	$	531	(22	)	(19	)	$	1,285	$	1,589	(19	)	(13	)

The worldwide operational declines in the third quarter and first nine months of 2019 were primarily due to ongoing biosimilar competition in most developed Europe markets, which is expected to continue.


•	Chantix/Champix (Biopharma):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	227	$	197	15				$	666	$	602	11
International	49		64		(22	)	(20	)	159		187		(15	)	(10	)
Worldwide revenues	$	276	$	261	6		7		$	825	$	789	5		6

The growth in the U.S. in the third quarter and first nine months of 2019 was primarily due to favorable channel mix. The operational declines internationally in the third quarter and first nine months of 2019 were mainly driven by generic entry in South Korea and Canada.


•	Norvasc (Upjohn):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	9	$	9	5				$	30	$	27	11
International	209		239		(12	)	(9	)	704		750		(6	)	(1	)
Worldwide revenues	$	219	$	248	(12	)	(9	)	$	735	$	777	(6	)	(1	)

The worldwide operational decline in the third quarter of 2019 was primarily driven by pricing pressures in China resulting from the VBP implementation in certain cities and lower volumes in Japan and South Korea, partially offset by volume growth and geographic expansion in provinces in China where the VBP has not yet been implemented. The worldwide operational decline in the first nine months of 2019 was primarily due to pricing pressures in China resulting from the VBP implementation in certain cities and lower volumes in Japan, partially offset by overall increased demand in China in the first quarter of 2019 and continued geographic expansion during the third quarter of 2019 in provinces where the VBP has not yet been implemented.


•	Sutent (Biopharma):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	64	$	80	(20	)			$	217	$	262	(17	)
International	160		168		(5	)	—		488		524		(7	)	—
Worldwide revenues	$	224	$	248	(10	)	(7	)	$	704	$	785	(10	)	(5	)

The worldwide operational declines in the third quarter and first nine months of 2019 reflect continued erosion as a result of increased competition in the U.S. and key developed markets, partially offset by growth in certain emerging markets.

•

Xtandi alliance revenues ~~(IH)~~(Biopharma): Xtandi is being developed and commercialized through a collaboration with Astellas. The two companies share equally in the gross profits (losses) related to U.S. net sales of Xtandi. Subject to certain exceptions, Pfizer and Astellas also share equally all Xtandi commercialization costs attributable to the U.S. market. Pfizer and Astellas also share certain development and other collaboration expenses, and Pfizer receives tiered royalties as a percentage of international Xtandi net sales (recorded in Other (income)/deductions—net).



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	225	$	180	25		$	594	$	510	17
International	—		—		—	—	—		—		—	—
Worldwide revenues	$	225	$	180	25	25	$	594	$	510	17	17

~~See~~The growth in the ~~“Analysis~~U.S. in the third quarter and first nine months of 2019 was primarily driven by increased demand for Xtandi in metastatic (mCRPC) and non-metastatic (nmCRPC) castration-resistant prostate cancer, partially offset by higher patient assistance programs (PAP) utilization in the first nine months of 2019, compared to the same period in 2018.


•	The Premarin family of products (Biopharma):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	170	$	191	(11	)			$	510	$	569	(10	)
International	11		12		(8	)	(5	)	32		36		(10	)	(5	)
Worldwide revenues	$	182	$	204	(11	)	(11	)	$	542	$	605	(10	)	(10	)

The worldwide operational declines in the third quarter and first nine months of 2019 were primarily driven by competitive pressures in the U.S.


•	Celebrex (Upjohn):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	14	$	16	(17	)			$	44	$	50	(13	)
International	166		171		(3	)	(3	)	482		444		9		12
Worldwide revenues	$	179	$	188	(5	)	(4	)	$	526	$	494	7		9

The worldwide operational decline in the third quarter of 2019 was primarily due to lower volumes and pricing pressures in certain emerging markets. The worldwide operational growth in the first nine months of 2019 was mainly due to higher volumes in Japan and in China, driven by investments in geographic expansion, partially offset by pricing pressures in certain emerging markets.


•	Sulperazon (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	—	$	—	—		$	—	$	—	—
International	163		145		12	16	505		464		9	15
Worldwide revenues	$	163	$	145	12	16	$	505	$	464	9	15

The international operational growth in the third quarter and first nine months of 2019 was mostly due to increased demand in China.


•	Inflectra/Remsima (Biopharma):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	77	$	71	8				$	208	$	189	10
International	78		95		(18	)	(15	)	238		280		(15	)	(10	)
Worldwide revenues	$	155	$	166	(7	)	(5	)	$	446	$	469	(5	)	(2	)

The worldwide operational revenues declined in the third quarter and first nine months of 2019 due to pricing pressures globally as well as competitive pressures internationally, partially offset by continued volume growth in certain channels in the U.S., as well as in certain developed markets in Europe and Canada.

The growth in the U.S. in the third quarter and first nine months of 2019 was primarily driven by demand in open systems, partially offset by price erosion. While Inflectra has achieved parity access to Remicade^® (infliximab) in Medicare Part B, nearly half of all commercial patients are not able to access Inflectra due to exclusionary contracting practices by J&J. In September 2017, Pfizer filed suit in the U.S. District Court for the Eastern District of Pennsylvania against J&J alleging that J&J’s exclusionary contracts and other anticompetitive practices concerning Remicade violate federal antitrust laws. In June 2019, Pfizer received a Civil Investigative Demand from the Federal Trade Commission (FTC) seeking documents and information relating to the alleged conduct and market conditions at issue in Pfizer’s lawsuit against J&J. Pfizer understands that the FTC’s investigation is focused on J&J’s alleged conduct at issue in Pfizer’s lawsuit against J&J.


•	Xalkori (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	36	$	34	7		$	111	$	118	(6	)
International	94		93		1	4	274		299		(8	)	(3	)
Worldwide revenues	$	130	$	127	2	5	$	385	$	417	(8	)	(4	)

The worldwide operational growth in the third quarter of 2019 was primarily due to increased volumes in China following the impact of inclusion of Xalkori in the 2019 National Reimbursement Drug Listing (NRDL) in China, partially offset by volume declines in the ALK indication due to competitive pressure primarily across developed Europe and pricing pressures in China. In the first nine months of 2019, the worldwide operational decline in revenues primarily resulted from erosion due to competition in developed Europe and in the U.S., partially offset by growth in China, following the impact of inclusion of Xalkori in the NRDL.


•	Viagra (Upjohn):



	Three Months Ended								Nine Months Ended
					% Change								% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total		Oper.		September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	20	$	32	(37	)			$	72	$	196	(63	)
International	99		105		(5	)	(3	)	306		313		(2	)	3
Worldwide revenues	$	120	$	137	(13	)	(11	)	$	379	$	509	(26	)	(22	)

The declines in the U.S. in the third quarter and first nine months of 2019 were driven by the loss of exclusivity in December 2017.

The operational decline internationally in the third quarter of 2019 was primarily due to lower volumes across developed markets. The operational growth internationally in the first nine months of 2019 was mostly due to increased demand in China driven by investments in geographic expansion, partially offset by pricing pressures in China and lower volumes across developed and certain emerging markets.


•	Inlyta (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	92	$	27	*		$	185	$	88	*
International	46		44		6	10	131		138		(5	)	2
Worldwide revenues	$	139	$	71	95	98	$	316	$	226	40		44

The worldwide operational growth in the third quarter and first nine months of 2019 was primarily due to increased demand in the U.S. as a result of the ~~Consolidated Statements~~FDA approvals in the second quarter of ~~Income—Revenues—Selected Product Descriptions” section~~2019 for combinations of ~~our~~certain checkpoint inhibitors plus Inlyta for the first-line treatment of patients with advanced RCC. The growth was partially offset by the decline in other developed markets due to increased competition.


•	Eucrisa (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total		Oper.
U.S.	$	42	$	40	5		$	90	$	104	(14	)
International	1		—		*	*	2		—		*		*
Worldwide revenues	$	43	$	40	7	7	$	92	$	104	(12	)	(12	)

The growth in the U.S. in the third quarter of ~~2016~~2019 was driven by volume growth that was partially offset by higher rebating and unfavorable channel mix. The decline in the U.S. in the first nine months of 2019 was driven by volume growth that was more than offset by higher rebating and unfavorable channel mix, in addition to favorable rebate adjustments in 2018.


•	Alliance revenues (Biopharma):



	Three Months Ended						Nine Months Ended
					% Change						% Change
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018		Total	Oper.	September 29, 2019		September 30, 2018		Total	Oper.
U.S.	$	773	$	642	20		$	2,383	$	1,901	25
International	368		336		10	13	1,034		919		13	18
Worldwide revenues	$	1,141	$	977	17	18	$	3,418	$	2,820	21	23

The worldwide operational growth was mainly due to increases in Eliquis and Xtandi alliance revenues included in the above discussion.

◦

Bavencio (Biopharma) is being developed and commercialized in collaboration with Merck KGaA. Both companies jointly fund the majority of development and commercialization costs, and split equally any profits generated from selling any products containing avelumab from this collaboration. Bavencio is currently approved in metastatic MCC in the U.S., Europe and Japan and select other markets, as well as in second line treatment of locally advanced or metastatic urothelial carcinoma and first-line treatment of patients with advanced RCC in combination with Inlyta in the U.S.

See Notes to Condensed Consolidated Financial ~~Report~~Statements––Note 13C.Segment, Geographic and Other Revenue Information: Other Revenue Information for additional information regarding the primary indications or class of the selected products discussed above.

See Notes to Condensed Consolidated Financial Statements—Note 12. ~~Commitments~~Contingencies and ~~Contingencies~~Certain Commitments for a discussion of recent developments concerning patent and product litigation relating to certain of the products discussed above.

Product Developments—Biopharmaceutical

We continue to invest in R&D to provide potential future sources of revenues through the development of new products, as well as through additional uses for in-line and alliance products. Notwithstanding our efforts, there are no assurances as to when, or if, we will receive regulatory approval for additional indications for existing products or any of our other products in development.

We continue to strengthen our global R&D organization and pursue strategies intended to improve innovation and overall productivity in R&D to achieve a sustainable pipeline that will deliver value in the near term and over time. ~~Our R&D priorities include:~~

~~delivering a pipeline of differentiated therapies with the greatest scientific and commercial promise;~~

~~innovating new capabilities that can position Pfizer for long-term leadership; and~~

~~creating new models for biomedical collaboration that will expedite the pace of innovation and productivity.~~

~~Our R&D primarily focuses on:~~

~~Biosimilars;~~

~~Inflammation and Immunology;~~

~~Metabolic Disease and Cardiovascular Risks;~~

~~Neuroscience;~~

~~Oncology~~

~~Rare Diseases; and~~

~~Vaccines.~~

For additional information about our ~~R&D organization, including the EH~~ R&D organization, see the “Overview of Our Performance, Operating Environment, Strategy and Outlook—Our Strategy—Organizing for Growth” and “—Description of Research and Development Operations” ~~section~~sections of this MD&A.

A comprehensive update of Pfizer’s development pipeline was published on as of October ~~31, 2017~~29, 2019 and is available at www.pfizer.com/science/drug-product-pipeline. It includes an overview of our research and a list of compounds in development with targeted indication and phase of development, as well as mechanism of action for some candidates in Phase 1 and all candidates from Phase 2 through registration.

The following series of tables provides information about significant regulatory actions by, and filings pending with, the FDA and regulatory authorities in the EU and Japan, as well as additional indications and new drug candidates in late-stage development.



RECENT FDA APPROVALS
PRODUCT	INDICATION	DATE APPROVED
~~Lyrica (pregabalin)~~ Ruxience™ (rituximab-pvvr)^(a)	~~Extended-release tablets CV as once-daily therapy~~ A biosimilar to Rituxan^® (rituximab) for the ~~management~~treatment of ~~neuropathic pain associated~~adult patients with ~~diabetic peripheral neuropathy~~non-Hodgkin’s lymphoma, chronic lymphocytic leukemia, and ~~the management of post-herpetic neuralgia~~granulomatosis with polyangiitis and microscopic polyangiitis	~~October 2017~~ July 2019
~~Mylotarg (gemtuzumab ozogamicin)~~ Zirabev (bevacizumab-bvzr)^(b)	~~Treatment~~ A biosimilar to Avastin^® (bevacizumab) for the treatment of ~~adults with newly diagnosed CD33-positive acute myeloid leukemia (AML),~~mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and ~~adults and children 2 years and older with relapsed~~persistent, recurrent or ~~refractory CD33-positive AML~~metastatic cervical cancer	~~September 2017~~
~~Besponsa (inotuzumab ozogamicin)~~	~~Treatment of adults with relapsed or refractory B-cell precursor acute lymphoblastic leukemia~~	~~August 2017~~June 2019
Bavencio (avelumab)	~~Treatment~~Bavencio (avelumab) in combination with Inlyta (axitinib) for the first-line treatment of patients with ~~locally~~ advanced ~~or metastatic urothelial carcinoma with disease progression on or after platinum-based therapy,~~RCC, which is being developed in collaboration with Merck KGaA, Germany	May ~~2017~~2019
~~Bavencio (avelumab)~~Vyndaqel (tafamidis meglumine)	Treatment of the cardiomyopathy of wild-type or hereditary transthyretin-mediated amyloidosis (ATTR-CM) in adults to reduce cardiovascular mortality and ~~pediatric patients 12 years~~cardiovascular-related hospitalization	May 2019
Vyndamax (tafamidis)	Treatment of the cardiomyopathy of wild-type or hereditary ATTR-CM in adults to reduce cardiovascular mortality and ~~older with metastatic Merkel cell carcinoma, which is being developed in collaboration with Merck KGaA, Germany~~cardiovascular-related hospitalization	May 2019
Trazimera (trastuzumab-qyyp)^(c)	A biosimilar to Herceptin^® (trastuzumab) for all eligible indications of the reference product	March ~~2017~~2019
~~Eucrisa (crisaborole)~~Daurismo (glasdegib)	~~A non-steroidal topical anti-inflammatory PDE-4~~Treatment of newly-diagnosed acute myeloid leukemia in adult patients who are 75 years or older or who have comorbidities that preclude use of intensive induction chemotherapy	November 2018
Lorbrena (lorlatinib)	Treatment of patients with ALK-positive metastatic NSCLC whose disease has progressed on crizotinib and at least one other ALK inhibitor for metastatic disease; or whose disease has progressed on alectinib or ceritinib as the ~~treatment of mild-to-moderate atopic dermatitis~~first ALK inhibitor therapy for metastatic disease	~~December 2016~~November 2018


^(a)	Rituxan^® is a registered trademark of Biogen MA Inc.


^(b)	Avastin^® is a registered trademark of Genentech, Inc.


^(c)	Herceptin^® is a registered trademark of Genentech, Inc.



PENDING U.S. NDAs AND SUPPLEMENTAL FILINGS
PRODUCT	PROPOSED INDICATION	DATE ~~FILED~~^* FILED*
Xtandi (enzalutamide)	Treatment of metastatic hormone-sensitive prostate cancer, which is being developed through a collaboration with Astellas	August 2019
~~PF-05280014~~PF-06881894^(a)	A potential biosimilar to ~~Herceptin~~Neulasta^® ~~(trastuzumab)~~(pegfilgrastim)	August ~~2017~~
~~Bosulif (bosutinib)~~	~~Treatment of patients with newly diagnosed chronic phase Philadelphia chromosome-positive chronic myeloid leukemia, which is being developed in collaboration with Avillion~~	~~August 2017~~
~~Xeljanz (tofacitinib)~~	~~Treatment of adult patients with moderately to severely active ulcerative colitis~~	~~July 2017~~2019
~~Sutent (sunitinib)~~PF-06410293^(b)	~~Adjuvant treatment in adult patients at high risk of recurrent renal cell carcinoma following nephrectomy~~	~~May 2017~~
~~Xeljanz (tofacitinib)~~^(c)	~~Treatment of adult patients with active psoriatic arthritis~~	~~May 2017~~
~~PF-06438179~~^(d)	A potential biosimilar to ~~Remicade~~Humira^® ~~(infliximab)~~(adalimumab)	~~April 2017~~
~~ertugliflozin~~	~~Treatment of type 2 diabetes, which is being developed in collaboration with Merck~~	~~March 2017~~January 2019
~~Retacrit~~Vyndaqel (tafamidis meglumine)^(e)	~~A potential biosimilar to Epogen~~^® ~~and Procrit~~^® ~~(epotein alfa)~~	~~February 2015~~
~~tafamidis meglumine~~^(f)(c)	Treatment of transthyretin familial amyloid polyneuropathy	February 2012


*	The dates set forth in this column are the dates on which the FDA accepted our submissions.


^(a)	~~Herceptin~~Neulasta^®is a registered U.S. trademark of ~~Genentech,~~Amgen Inc.


^(b)	In September 2017, the FDA’s Oncologic Drug Advisory Committee (ODAC) voted six in favor and six against the benefit-risk profile for Sutent as adjuvant treatment of adult patients at high risk of recurrent renal cell carcinoma after nephrectomy (surgical removal of the cancer-containing kidney).


^(c)	~~In August 2017, the FDA’s Arthritis Advisory Committee voted ten to one to recommend approval of the proposed dose of tofacitinib for the treatment of adult patients with active psoriatic arthritis.~~

^(d)

~~Remicade~~Humira^® is a registered trademark of ~~Janssen. In February 2016, we divested the rights for development and commercialization of PF-06438179, a potential biosimilar to Remicade~~^® (infliximab) in the 28 countries that form the EEA to Sandoz, which was a condition to the European Commission’s approval of the Hospira transaction. We retain commercialization rights to PF-06438179 in all countries outside of the EEA.AbbVie Biotechnology Ltd.

^(e)

~~Epogen~~^® ~~is a registered U.S. trademark of Amgen Inc.; Procrit~~^® is a registered U.S. trademark of Johnson & Johnson. In October 2015, we received a “complete response” letter from the FDA with respect to our biologics license application (BLA) for Retacrit, our proposed biosimilar to epoetin alfa, which was submitted for all indications of the reference product. In December 2016, we completed the resubmission of the BLA to the FDA for Retacrit in response to the “complete response” letter. In May 2017, the FDA’s ODAC voted to recommend Retacrit for approval. In June 2017, we received a “complete response” letter from the FDA, relating to matters noted in a Warning Letter issued in February 2017 following a routine inspection of the company’s facility in McPherson, Kansas in 2016. This facility was listed as the potential manufacturing site in the BLA for the proposed epoetin alfa biosimilar. The issues noted in the Warning Letter do not relate specifically to the manufacture of epoetin alfa. No additional clinical data was requested at this time and we continue to work closely with the FDA on next steps.

^(f)(c)

In May 2012, the FDA’s Peripheral and Central Nervous System Drugs Advisory Committee voted that the tafamidis meglumine data provide substantial evidence of efficacy for a surrogate endpoint that is reasonably likely to predict a clinical benefit. In June 2012, the FDA issued a “complete response” letter with respect to ~~the~~this tafamidis NDA. The FDA has requested the completion of a second efficacy study, and also has asked for additional information on the data within the current tafamidis NDA. Pfizer ~~initiated~~has completed study B3461028, ~~in December 2013,~~ a global Phase 3 study to support ~~a potential~~the new indication inof transthyretin amyloid cardiomyopathy, which includes ~~transthyretin familial amyloid cardiomyopathy (TTR-FAC)~~patients with wild type and ~~wild-type cardiomyopathy (WT-CM).~~variant transthyretin. We ~~anticipate results from this study in 2018, and continue to work~~are working with the FDA to identify next steps.



REGULATORY APPROVALS AND FILINGS IN THE EU AND JAPAN
PRODUCT	DESCRIPTION OF EVENT	DATE APPROVED	DATE ~~FILED~~^* FILED*
~~Xeljanz (tofacitinib)~~Braftovi (encorafenib) and Mektovi (binimetinib)	Application filed in the EU for second-or-third-line treatment of ~~psoriatic arthritis~~BRAF-mutant mCRC, which is being developed in collaboration with the Pierre Fabre Group	—	~~September 2017~~
~~Ibrance (palbociclib)~~	~~Approval in Japan for Ibrance in combination with endocrine therapy for the treatment of HR+, HER2- inoperable or recurrent breast cancer~~	~~September 2017~~	—November 2019
Bavencio (avelumab)	~~Approval~~Application approved in ~~Japan~~the EU for Bavencio (avelumab) in combination with Inlyta (axitinib) for the first-line treatment of ~~curatively unresectable Merkel cell carcinoma,~~advanced RCC, which is being developed in collaboration with Merck KGaA, Germany	~~September 2017~~October 2019	—
~~Bavencio (avelumab)~~ PF-06881894^(a)	~~Approval~~Application filed in the EU for a potential biosimilar to Neulasta® (pegfilgrastim)	—	October 2019
Rituximab Pfizer (rituximab)^(b)	Application approved in Japan for a biosimilar to Rituxan^® (rituximab) for the treatment of CD20-positive, B-cell non-Hodgkin’s Lymphoma, CD20-positive, B-cell lymphoproliferative disease under immunosuppression, and Granulomatosis with polyangiitis, and microscopic polyangiitis	September 2019	—
Bosulif (bosutinib)	Application filed in Japan for the treatment of chronic myelogenous leukemia (CML), which is being developed in collaboration with Avillion LLP	—	July 2019
Xtandi (enzalutamide)	Application filed in the EU for the treatment of metastatic hormone-sensitive prostate cancer, which is being developed through a collaboration with Astellas	—	July 2019
Talzenna (talazoparib)	Application approved in the EU for monotherapy for the treatment of adult patients with germline breast cancer susceptibility gene (gBRCA)1/2-mutations, who have human epidermal growth factor receptor 2-negative (HER2-) locally advanced or metastatic ~~Merkel~~breast cancer	June 2019	—
Bevacizumab Pfizer (bevacizumab)^(c)	Application approved in Japan for a biosimilar to Avastin^® (bevacizumab) for the treatment of metastatic colorectal cancer	June 2019	—
Daurismo (glasdegib)	Application filed in the EU for treatment of newly-diagnosed acute myeloid leukemia in adult patients who are 75 years or older or who have co-morbidities that preclude use of intensive induction chemotherapy	—	May 2019
Lorviqua (lorlatinib)	Application approved in the EU as monotherapy, for the treatment of adult patients with ALK- positive advanced non-small cell lung cancer whose disease has progressed after: • alectinib or ceritinib as the first ALK tyrosine kinase inhibitor (TKI) therapy; or • crizotinib and at least one other ALK TKI	May 2019	—
Vizimpro (dacomitinib)	Application approved in the EU as monotherapy for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with EGFR activating mutations, which is being developed in collaboration with SFJ	April 2019	—
Vyndaqel (tafamidis meglumine)	Application approved in Japan for treatment of transthyretin amyloid cardiomyopathy	March 2019	—
Zirabev^(c)	Application approved in the EU for a biosimilar to Avastin^® (bevacizumab) for the treatment of metastatic carcinoma of the colon or rectum, metastatic breast cancer, unresectable advanced, metastatic or recurrent NSCLC, advanced and/or metastatic renal cell cancer and persistent, recurrent, or metastatic carcinoma of the cervix	February 2019	—
Vyndaqel (tafamidis free acid)	Application filed in the EU for the treatment of adults with transthyretin amyloid cardiomyopathy	—	January 2019
Bavencio (avelumab)	Application filed in Japan for Bavencio (avelumab) in combination with Inlyta (axitinib) for the first-line treatment of advanced RCC, which is being developed in collaboration with Merck KGaA, Germany	~~September 2017~~—	—January 2019
~~Xeljanz (tofacitinib)~~Vizimpro (dacomitinib)	Application ~~filed~~approved in ~~the EU for the treatment of ulcerative colitis~~	—	~~August 2017~~
~~Bosulif (bosutinib)~~	~~Application filed in the EU~~Japan for the treatment of patients with ~~newly diagnosed chronic phase Philadelphia chromosome-positive chronic myeloid leukemia,~~locally advanced or metastatic non-small cell lung cancer with EGFR mutations, which is being developed in collaboration with ~~Avillion~~SFJ	January 2019	—	~~August 2017~~
~~PF-06438179~~PF-06410293^(a)(d)	~~Application filed in Japan for a potential biosimilar to Remicade~~^® ~~(infliximab)~~	—	~~August 2017~~
~~PF-05280014~~^(b)	Application filed in the EU for a potential biosimilar to ~~Herceptin~~Humira^® ~~(trastuzumab)~~(adalimumab)	—	~~July 2017~~
~~Besponsa (inotuzumab ozogamicin)~~	~~Approval in the EU for the treatment of adult patients with relapsed or refractory B-cell precursor acute lymphoblastic leukemia~~	~~June 2017~~	—November 2018
~~Trumenba~~ PF-05280586^(b)	~~Approval in the EU for a prophylactic vaccine for active immunization to prevent invasive disease caused by~~ ~~Neisseria meningtidis~~ ~~serogroup B in individuals 10 years of age and older~~	~~May 2017~~	—
~~Xalkori (crizotinib)~~	~~Approval in Japan for the treatment of ROS1-positive non-small cell lung cancer~~	~~May 2017~~	—
~~Xeljanz (tofacitinib)~~	~~Application filed in Japan for the treatment of ulcerative colitis~~	—	~~May 2017~~
~~Sutent (sunitinib)~~	Application filed in the EU for ~~the adjuvant treatment in adult patients at high risk of recurrent renal cell carcinoma following nephrectomy~~a potential biosimilar to Rituxan^® (rituximab)	—	~~April 2017~~August 2018
~~inotuzumab ozogamicin~~	~~Application filed in Japan for the treatment of acute lymphoblastic leukemia~~	—	~~April 2017~~
~~Xeljanz (tofacitinib)~~	Approval in the EU for Xeljanz in combination with methotrexate for the treatment of moderate to severe active rheumatoid arthritis in adult patients who have responded inadequately to, or who are intolerant to one or more disease-modifying antirheumatic drugs. Xeljanz can be given as monotherapy in case of intolerance to methotrexate or when treatment with methotrexate is inappropriate	~~March 2017~~	—
~~ertugliflozin~~crisaborole	Application filed in the EU for the treatment of ~~type 2 diabetes, which is being developed in collaboration with Merck~~mild-to-moderate atopic dermatitis	—	~~February 2017~~May 2018
~~Mylotarg (gemtuzumab ozogamicin)~~Xeljanz (tofacitinib)	Application filed in the EU for ~~the treatment of acute myeloid leukemia~~modified release 11mg tablet for RA	—	~~December 2016~~
~~Ibrance (palbociclib)~~	~~Approval in the EU for palbociclib in combination with~~ ~~endocrine therapy for the treatment of HR+, HER2- advanced or~~ ~~metastatic breast cancer, as well as for the treatment of recurrent~~ ~~advanced breast cancer~~	~~November 2016~~	—March 2018


*	For applications in the EU, the dates set forth in this column are the dates on which the EMA validated our submissions.

^(a)

~~Remicade~~Neulasta^® is a registered trademark of ~~Janssen. In February 2016, we divested the rights for development and commercialization of PF-06438179, a potential biosimilar to Remicade~~^® (infliximab) in the 28 countries that form the EEA to Sandoz, which was a condition to the European Commission’s approval of the Hospira transaction. We retain commercialization rights to PF-06438179 in all countries outside of the EEA.Amgen Inc.


^(b)	~~Herceptin~~Rituxan^® is a registered trademark of Biogen MA Inc.


^(c)	Avastin^® is a registered trademark of Genentech, Inc.


^(d)	Humira^® is a registered trademark of AbbVie Biotechnology Ltd.



LATE-STAGE CLINICAL PROGRAMS FOR ADDITIONAL USES AND DOSAGE FORMS FOR IN-LINE AND IN-REGISTRATION PRODUCTS
PRODUCT	PROPOSED INDICATION
Bavencio (avelumab)	~~A monoclonal antibody that inhibits PD-L1, in combination with Inlyta (axitinib), a tyrosine kinase inhibitor,~~ ~~for the first-line treatment of advanced renal cell carcinoma, which is being developed in collaboration with~~ ~~Merck KGaA, Germany~~
~~Bavencio (avelumab)~~	A monoclonal antibody that inhibits PD-L1 for the first-line treatment of stage IIIb/IV non-small cell lung cancer, ~~which is being developed in collaboration with Merck KGaA, Germany~~
~~Bavencio (avelumab)~~	~~A monoclonal antibody that inhibits PD-L1 for treatment of stage IIIb/IV non-small cell lung cancer that has progressed after a platinum-containing doublet,~~ which is being developed in collaboration with Merck KGaA, Germany
Bavencio (avelumab)	~~A monoclonal antibody that inhibits PD-L1 for treatment of platinum-resistant/refractory ovarian cancer,~~ ~~which is being developed in collaboration with Merck KGaA, Germany~~
~~Bavencio (avelumab)~~	~~A monoclonal antibody that inhibits PD-L1 for the first-line treatment of ovarian cancer, which is being~~ ~~developed in collaboration with Merck KGaA, Germany~~
~~Bavencio (avelumab)~~	A monoclonal antibody that inhibits PD-L1 for maintenance treatment, in the first-line setting, for patients with urothelial cancer, which is being developed in collaboration with Merck KGaA, Germany
Bavencio (avelumab)	A monoclonal antibody that inhibits PD-L1 for maintenance treatment of advanced or metastatic gastric/ gastro-esophageal junction cancers, which is being developed in collaboration with Merck KGaA, Germany
Bavencio (avelumab)	~~A monoclonal antibody that inhibits PD-L1 for the third-line treatment of advanced or metastatic gastric/~~ ~~gastro-esophageal junction cancers, which is being developed in collaboration with Merck KGaA, Germany~~
~~Bavencio (avelumab)~~	A monoclonal antibody that inhibits PD-L1 for treatment of locally advanced squamous cell carcinoma of the head and neck, which is being developed in collaboration with Merck KGaA, Germany
Braftovi (encorafenib) and Mektovi (binimetinib)	Second-or-third-line treatment of BRAF-mutant mCRC (ex-EU)
~~Inlyta (axitinib)~~Daurismo (glasdegib)	~~Adjuvant~~A smoothened inhibitor, in combination with azacitidine, for the treatment of ~~renal cell carcinoma, which is being developed in collaboration with SFJ~~acute myeloid leukemia
Ibrance (palbociclib)	Treatment of HER2+ advanced breast cancer, in collaboration with the Alliance Foundation Trials, LLC
Ibrance (palbociclib)	Treatment of high-risk early breast cancer, in collaboration with the German Breast Group
Ibrance (palbociclib)	Treatment of HR+ early breast cancer, in collaboration with the Alliance Foundation Trials, LLC, and the Austrian Breast Colorectal Cancer Study Group
~~Xtandi (enzalutamide)~~Lorbrena (lorlatinib)	Treatment of ~~non-metastatic castration resistant prostate~~patients with metastatic non-small cell lung cancer whose tumors are ALK-positive as detected by an FDA-approved test
Xeljanz (tofacitinib)	Treatment of ankylosing spondylitis
Xtandi (enzalutamide)	Treatment of non-metastatic ~~high risk~~ hormone-sensitive prostate cancer, which is being developed through a collaboration with Astellas
Talzenna (talazoparib)	An oral PARP inhibitor, in combination with Xtandi (enzalutamide)	~~Treatment~~, for the treatment of metastatic ~~hormone-sensitive~~castration-resistant prostate cancer
~~Vyndaqel (tafamidis meglumine)~~	~~Adult symptomatic transthyretin cardiomyopathy~~

In February 2019, the company took steps to transition rheumatoid arthritis study patients who were on tofacitinib 10 mg twice daily to tofacitinib 5 mg twice daily in the ongoing FDA post-marketing requirement study A3921133, a study performed in patients considered to be at high risk for certain side effects. This action was taken as the result of notification from the tofacitinib Rheumatology Data Safety Monitoring Board of a safety signal regarding the tofacitinib 10 mg twice daily treatment arm in study A3921133. The 5 mg twice daily dose is the FDA approved dose in the U.S. for adult patients with moderate to severe rheumatoid arthritis. In July 2019, the FDA updated the U.S. prescribing information for Xeljanz to include two additional boxed warnings as well as changes to the indication and dosing for UC. These updates were based on the FDA’s review of data from the ongoing post-marketing requirement RA study A3921133. In addition, the EU product labeling (SmPC) for Xeljanz was updated in July 2019 to reflect provisional measures required by the EMA’s pharmacovigilance committee (PRAC) while a review was conducted. The PRAC has completed its review and has recommended to the EMA’s scientific committee (CHMP) that caution should be utilized in treating patients with Xeljanz who are at risk for certain side effects. This recommendation will be reviewed by the CHMP who will issue a final opinion; this is expected during November 2019. The CHMP opinion will be provided to the European Commission to issue a legally-binding decision; this procedure is expected to be completed in early 2020.



NEW DRUG CANDIDATES IN LATE-STAGE DEVELOPMENT
CANDIDATE	PROPOSED INDICATION
~~dacomitinib~~aztreonam-avibactam (PF-06947387)	A pan-human epidermal growth factor receptor (HER) tyrosine kinase inhibitor for the first-line treatment of patients with advanced non-small cell lung cancer with estimated glomerular filtration rate (eGFR) activating mutations, which is being developed in collaboration with SFJ
~~lorlatinib (PF-06463922)~~	~~A next generation ALK/ROS1 tyrosine kinase~~beta lactam/beta lactamase inhibitor for the treatment of patients with ~~ALK-positive metastatic non-small cell lung cancer, previously treated~~infections caused by Gram-negative bacteria, including those that produce metallo-beta-lactamases, for which there are limited or no treatment options
fidanacogene elaparvovec (PF-06838435)	An investigational gene therapy for the treatment of hemophilia B
PF-06482077	A 20-Valent pneumococcal conjugate vaccine for the prevention of invasive pneumococcal disease and pneumonia caused by Streptococcus pneumoniae serotypes covered by the vaccine in adults 18 years of age and older
PF-06651600	A selective dual Janus kinase 3 (JAK3) and Tyrosine kinase Expressed in hepatocellular Carcinoma (TEC) family inhibitor for the treatment of patients with ~~one or more ALK inhibitors~~moderate to severe alopecia areata
abrocitinib (PF-04965842)	A Janus kinase 1 (JAK1) inhibitor for the treatment of moderate-to-severe atopic dermatitis
PF-06425090	A prophylactic vaccine for ~~active immunization to prevent~~prevention of primary clostridium difficile ~~colitis~~infection (CDI) in individuals
PF-06802861	An oral inhibitor of p38 mitogen-activated protein kinase for the treatment of patients with symptomatic dilated cardiomyopathy due to a Lamin A/C gene mutation
~~PF-05280586~~rivipansel (GMI-1070)^(a)	A ~~potential biosimilar to Rituxan~~^®~~(rituximab)~~
~~PF-06439535~~^(b)	~~A potential biosimilar to Avastin~~^® ~~(bevacizumab)~~
~~PF-06410293~~^(c)	~~A potential biosimilar to Humira~~^® ~~(adalimumab)~~
~~rivipansel (GMI-1070)~~	~~A pan-selectin~~triple selectin inhibitor, with highest potency for E-selectin for the treatment of acute vaso-occlusive ~~crisis in hospitalized individuals~~crises associated with sickle cell disease in patients aged 6 years and above, which was licensed from GlycoMimetics Inc.
somatrogon (PF-06836922)	A long-acting hGH-CTP for the treatment of growth hormone deficiency in children, which is being developed in collaboration with OPKO
somatrogon (PF-06836922)	A long-acting hGH-CTP for the treatment of growth hormone deficiency in adults, which is being developed in collaboration with OPKO
~~talazoparib (MDV3800)~~	~~An oral PARP inhibitor for the treatment of patients with germline breast cancer susceptibility gene BRCA mutated advanced breast cancer~~
tanezumab^(b)	An anti-nerve growth factor monoclonal antibody for the treatment of pain, which is being developed in collaboration with Lilly

^(a)

~~Rituxan~~^® isIn August 2019, we announced that the Phase 3 RESET (Rivipansel Evaluating Safety, Efficacy and Time to Discharge) pivotal study did not meet its primary or key secondary efficacy endpoints. The objective of the trial was to evaluate the efficacy and safety of rivipansel in patients aged six and older with sickle cell disease who were hospitalized for a ~~registered trademark~~vaso-occlusive crisis and required treatment with IV opioids. The primary endpoint was time to readiness-for-discharge and the key secondary efficacy endpoints were time-to-discharge, cumulative IV opioid consumption, and time to discontinuation of ~~Biogen MA Inc.~~

IV opioids. Detailed analyses of the RESET study, including additional data on efficacy and safety endpoints, which are not available at this time, will be submitted for presentation at a future scientific meeting. We are awaiting additional data to determine next steps.

^(b)

~~Avastin~~^®In April 2019, Pfizer and Lilly announced top-line results from a Phase 3 study (A4091058) evaluating subcutaneous (SC) administration of tanezumab 2.5 mg and 5 mg. The objective of the study was to compare the long-term joint safety and 16-week efficacy of tanezumab relative to nonsteroidal anti-inflammatory drugs in patients with moderate-to-severe osteoarthritis (OA) of the hip or knee. During additional routine quality-control activities that occurred after the study was completed and the database was locked, an adverse event of osteonecrosis, which required adjudication was identified in a patient treated with tanezumab 2.5 mg SC. Accounting for the one additional adjudicated case of osteonecrosis in the tanezumab 2.5 mg arm, the incidence of the primary joint safety endpoint for the 2.5 mg SC arm is ~~a registered trademark of Genentech, Inc.~~

3.9


^(c) percent (vs. 3.8 percent, reported in the top-line report). This additional finding does not change the conclusion of the study. Detailed results from this study will be presented at the 2019 American College of Rheumatology and the Association of Rheumatology Professionals Annual Meeting on November 11 and 12, 2019.	~~Humira~~^® ~~is a registered trademark of AbbVie Biotechnology Ltd.~~

Additional product-related programs are in various stages of discovery and development. ~~Also, see the discussion in the “Our Strategy––Our Business Development Initiatives” section of this MD&A.~~

~~COSTS AND EXPENSES~~

Costs and Expenses

The changes in expenses below reflect, among other things, a decline in expenses resulting from the ~~favorable impact~~July 31, 2019 completion of the ~~February 2017 sale of HIS. The operating~~Consumer Healthcare JV transaction with GSK. Our financial results, ~~of HIS are included in~~and our ~~operating results through February 2, 2017 and, therefore,~~Consumer Healthcare segment’s operating results, for the third quarter of ~~2017 do not~~2019 reflect ~~HIS global operations, while operating results for the third quarter of~~ ~~2016~~ ~~reflect three months of HIS global operations. Operating results for the first nine months of~~ ~~2017~~ ~~include approximately~~only one month of ~~HIS~~Consumer Healthcare segment domestic operations and ~~approximately~~ two months of ~~HIS~~Consumer Healthcare segment international ~~operations, while~~operations. Likewise, our financial results, and our Consumer Healthcare segment’s operating results, for the first nine months of ~~2016~~2019 reflect ~~nine~~seven months of ~~HIS global~~Consumer Healthcare segment domestic operations and eight months of Consumer Healthcare segment international operations. For additional information, see Notes to Condensed Consolidated Financial Statements—Note 1A.Basis of Presentation and Significant Accounting Policies: Basis of Presentation.

Cost of Sales


	Three Months Ended								Nine Months Ended								Three Months Ended								Nine Months Ended
(MILLIONS OF DOLLARS)	October 1, 2017			October 2, 2016			% Change		October 1, 2017			October 2, 2016			% Change		September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change
Cost of sales	$	2,847		$	3,085		(8	)	$	7,980		$	9,111		(12	)	$	2,602		$	2,694		(3	)	$	7,611		$	8,173		(7	)
As a percentage of Revenues	21.6		%	23.6		%			20.5		%	23.2		%			20.5		%	20.3		%			19.5		%	20.6		%



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change	September 29, 2019			September 30, 2018			% Change
Research and development expenses	$	2,283		$	2,008		14	$	5,827		$	5,549		5
As a percentage of Revenues	18.0		%	15.1		%		14.9		%	14.0		%

Amortization of intangible assets ~~increased 22%~~decreased $42 million, or 3%, in the third quarter of ~~2017~~2019, compared to the same period in 2018, primarily due to the non-recurrence of amortization expense resulting from the impairment of sterile injectable products

in the fourth quarter of 2018 and ~~22%~~the contribution of our Consumer Healthcare business to the Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of intangible assets as a result of our acquisition of Array.

Amortization of intangible assets decreased $61 million, or 2%, in the first nine months of ~~2017~~,2019, compared to ~~the~~ same ~~periods~~period in ~~2016~~,2018, primarily due to the ~~inclusion~~non-recurrence of amortization expense resulting from the impairment of ~~approximately $221 million (pre-tax)~~sterile injectable products in 2018 and the ~~third quarter~~contribution of ~~2017~~ ~~and approximately $751 million (pre-tax) in the first nine months of~~ ~~2017~~ ~~related~~our Consumer Healthcare business to the ~~identifiable intangible assets acquired from Medivation and Anacor,~~Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of assets ~~that became fully amortized at~~recorded as a result of the ~~end~~approval of ~~their estimated useful lives.~~

Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
%
Change
October 1,
2017
October 2,
2016
%
Change
Restructuring charges $ 91
$ 404
(77 ) $ 150
$ 574
(74 )
Transaction costs (14 ) 54
*
4
114
(97 )
Integration costs 73
74
(1 ) 224
300
(26 )
Restructuring charges and certain acquisition-related costs 149
531
(72 ) 377
988
(62 )
Total additional depreciation—asset restructuring 39
47
(17 ) 74
151
(51 )
Total implementation costs 57
78
(27 ) 150
202
(26 )
Costs associated with acquisitions and cost-reduction/productivity initiatives^(a)
$ 245
$ 655
(63 ) $ 601
$ 1,341
(55 )



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	Sept. 29, 2019		Sept. 30, 2018			% Change		Sept. 29, 2019			Sept. 30, 2018			% Change
Restructuring charges/(credits)—acquisition-related costs^(a)	$	19	$	24		(20	)	$	(196	)	$	5		*
Restructuring charges/(credits)—cost reduction initiatives^(b)	64		(22		)	*		145			(37		)	*
Restructuring charges/(credits)	83		1			*		(50		)	(32		)	58
Transaction costs^(c)	65		1			*		65			1			*
Integration costs and other^(c)	217		82			*		281			202			39
Restructuring charges and certain acquisition-related costs	365		85			*		295			172			72
Net periodic benefit costs	9		41			(78	)	19			103			(81	)
Additional depreciation—asset restructuring	6		12			(50	)	29			43			(33	)
Total implementation costs	40		48			(17	)	109			130			(17	)
Costs associated with acquisitions and cost-reduction/productivity initiatives^(d)	$	420	$	186		*		$	452		$	447		1
* Calculation not meaningful or results are equal to or greater than 100%.

Other (Income)/Deductions—Net

Three Months Ended Nine Months Ended
(MILLIONS OF DOLLARS) October 1,
2017
October 2,
2016
%
Change
October 1,
2017
October 2,
2016
%
Change
Other (income)/deductions––net $ 51
$ 1,417
(96 )% $ (16 ) $ 2,815
*

Three Months Ended October 1, 2017
IN MILLIONS, EXCEPT PER COMMON SHARE DATA GAAP Reported

Purchase Accounting Adjustments^(a)

Acquisition-Related Costs^(a)

Discontinued Operations^(a)

Certain Significant Items^(a)

Non-GAAP Adjusted
Revenues $ 13,168
$ —
$ —
$ —
$ —
$ 13,168
Cost of sales 2,847
(28 ) (26 ) —
(92 ) 2,699
Selling, informational and administrative expenses 3,500
—
—
—
(22 ) 3,478
Research and development expenses 1,859
1
—
—
(9 ) 1,851
Amortization of intangible assets 1,177
(1,120 ) —
—
—
57
Restructuring charges and certain acquisition-related costs 149
—
(129 ) —
(21 ) —
Other (income)/deductions––net 51
(7 ) —
—
(305 ) (261 )
Income from continuing operations before provision for taxes on income 3,585
1,154
155
—
449
5,343
Provision for taxes on income^(b)
727
306
72
—
161
1,267
Income from continuing operations 2,858
848
83
—
288
4,077
Discontinued operations––net of tax —
—
—
—
—
—
Net income attributable to noncontrolling interests 18
—
—
—
—
18
Net income attributable to Pfizer Inc. 2,840
848
83
—
288
4,059
Earnings per common share attributable to Pfizer Inc.––diluted 0.47
0.14
0.01
—
0.05
0.67



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change	September 29, 2019			September 30, 2018			% Change
Research and development expenses	$	2,283		$	2,008		14	$	5,827		$	5,549		5
As a percentage of Revenues	18.0		%	15.1		%		14.9		%	14.0		%



	Three Months Ended								Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change
Amortization of intangible assets	$	1,212		$	1,253		(3	)	$	3,578		$	3,640		(2	)
As a percentage of Revenues	9.6		%	9.4		%			9.2		%	9.2		%

Amortization of intangible assets decreased $42 million, or 3%, in the third quarter of 2019, compared to the same period in 2018, primarily due to the non-recurrence of amortization expense resulting from the impairment of sterile injectable products

in the fourth quarter of 2018 and the contribution of our Consumer Healthcare business to the Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of intangible assets as a result of our acquisition of Array.

Amortization of intangible assets decreased $61 million, or 2%, in the first nine months of 2019, compared to same period in 2018, primarily due to the non-recurrence of amortization expense resulting from the impairment of sterile injectable products in 2018 and the contribution of our Consumer Healthcare business to the Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of assets recorded as a result of the approval of an additional indication for Xtandi in the U.S., and amortization of intangible assets as a result of our acquisition of Array.



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	Sept. 29, 2019		Sept. 30, 2018			% Change		Sept. 29, 2019			Sept. 30, 2018			% Change
Restructuring charges/(credits)—acquisition-related costs^(a)	$	19	$	24		(20	)	$	(196	)	$	5		*
Restructuring charges/(credits)—cost reduction initiatives^(b)	64		(22		)	*		145			(37		)	*
Restructuring charges/(credits)	83		1			*		(50		)	(32		)	58
Transaction costs^(c)	65		1			*		65			1			*
Integration costs and other^(c)	217		82			*		281			202			39
Restructuring charges and certain acquisition-related costs	365		85			*		295			172			72
Net periodic benefit costs	9		41			(78	)	19			103			(81	)
Additional depreciation—asset restructuring	6		12			(50	)	29			43			(33	)
Total implementation costs	40		48			(17	)	109			130			(17	)
Costs associated with acquisitions and cost-reduction/productivity initiatives^(d)	$	420	$	186		*		$	452		$	447		1
* Calculation not meaningful or results are equal to or greater than 100%.

Other (Income)/Deductions—Net

The following tables provide revenue and cost information by reportable operating segment and a reconciliation of that information to our condensed consolidated statements of income:
Third Quarter of 2017
(MILLIONS OF DOLLARS)
Innovative Health (IH)^(a)

Essential Health (EH)^(a)

Other^(b)

Non-GAAP
Adjusted^(c)

Reconciling Items^(d)

GAAP Reported
Revenues $ 8,118
$ 5,050
$ —
$ 13,168
$ —
$ 13,168
Cost of sales 1,082
1,448
170
2,699
147
2,847
% of revenue 13.3 %
28.7 %
*

20.5 %
*

21.6 %
Selling, informational and administrative expenses 1,736
727
1,016
3,478
22
3,500
Research and development expenses 639
249
964
1,851
8
1,859
Amortization of intangible assets 40
17
—
57
1,120
1,177
Restructuring charges and certain acquisition-related costs —
—
—
—
149
149
Other (income)/deductions––net (253 ) (155 ) 147
(261 ) 312
51
Income/(loss) from continuing operations before provision for taxes on income $ 4,875
$ 2,765
$ (2,297 ) $ 5,343
$ (1,759 ) $ 3,585

Nine Months Ended October 1, 2017
(MILLIONS OF DOLLARS)
Innovative Health (IH)^(a)

Essential Health (EH)^(a)

Other^(b)

Non-GAAP
Adjusted^(c)

Reconciling Items^(d)

GAAP Reported
Revenues $ 23,204
$ 15,639
$ —
$ 38,843
$ —
$ 38,843
Cost of sales 2,912
4,319
497
7,729
252
7,980
% of revenue 12.6 % 27.6 % *
19.9 % *
20.5 %
Selling, informational and administrative expenses 4,914
2,212
3,026
10,151
82
10,233
Research and development expenses 1,709
755
2,862
5,326
20
5,346
Amortization of intangible assets 90
43
—
133
3,438
3,571
Restructuring charges and certain acquisition-related costs —
—
—
—
377
377
Other (income)/deductions––net (611 ) (248 ) 341
(519 ) 503
(16 )
Income/(loss) from continuing operations before provision for taxes on income $ 14,190
$ 8,558
$ (6,725 ) $ 16,023
$ (4,671 ) $ 11,351

Third Quarter of 2016
(MILLIONS OF DOLLARS)
Innovative Health (IH)^(a)

Essential Health (EH)^(a)

Other^(b)

Non-GAAP
Adjusted^(c)

Reconciling Items^(d)

GAAP Reported
Revenues $ 7,332
$ 5,712
$ —
$ 13,045
$ —
$ 13,045
Cost of sales 1,039
1,546
372
2,957
128
3,085
% of revenue 14.2 %
27.1 %
*

22.7 %
*

23.6 %
Selling, informational and administrative expenses 1,647
813
1,071
3,531
28
3,559
Research and development expenses 671
292
911
1,873
8
1,881
Amortization of intangible assets 25
7
—
32
936
968
Restructuring charges and certain acquisition-related costs —
—
—
—
531
531
Other (income)/deductions––net (237 ) (73 ) 142
(168 ) 1,584
1,417
Income/(loss) from continuing operations before provision for taxes on income $ 4,187
$ 3,128
$ (2,496 ) $ 4,819
$ (3,215 ) $ 1,604



	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018			% Change	September 29, 2019		September 30, 2018			% Change
Other (income)/deductions––net	$	319	$	(414	)	*	$	537	$	(1,143	)	*
* Calculation not meaningful or results are equal to or greater than 100%.



	Three Months Ended								Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change
Cost of sales	$	2,602		$	2,694		(3	)	$	7,611		$	8,173		(7	)
As a percentage of Revenues	20.5		%	20.3		%			19.5		%	20.6		%



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change	September 29, 2019			September 30, 2018			% Change
Research and development expenses	$	2,283		$	2,008		14	$	5,827		$	5,549		5
As a percentage of Revenues	18.0		%	15.1		%		14.9		%	14.0		%



	Three Months Ended								Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change		September 29, 2019			September 30, 2018			% Change
Amortization of intangible assets	$	1,212		$	1,253		(3	)	$	3,578		$	3,640		(2	)
As a percentage of Revenues	9.6		%	9.4		%			9.2		%	9.2		%

Amortization of intangible assets decreased $42 million, or 3%, in the third quarter of 2019, compared to the same period in 2018, primarily due to the non-recurrence of amortization expense resulting from the impairment of sterile injectable products

in the fourth quarter of 2018 and the contribution of our Consumer Healthcare business to the Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of intangible assets as a result of our acquisition of Array.

Amortization of intangible assets decreased $61 million, or 2%, in the first nine months of 2019, compared to same period in 2018, primarily due to the non-recurrence of amortization expense resulting from the impairment of sterile injectable products in 2018 and the contribution of our Consumer Healthcare business to the Consumer Healthcare joint venture with GSK, partially offset by an increase in amortization expense of assets recorded as a result of the approval of an additional indication for Xtandi in the U.S., and amortization of intangible assets as a result of our acquisition of Array.



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	Sept. 29, 2019		Sept. 30, 2018			% Change		Sept. 29, 2019			Sept. 30, 2018			% Change
Restructuring charges/(credits)—acquisition-related costs^(a)	$	19	$	24		(20	)	$	(196	)	$	5		*
Restructuring charges/(credits)—cost reduction initiatives^(b)	64		(22		)	*		145			(37		)	*
Restructuring charges/(credits)	83		1			*		(50		)	(32		)	58
Transaction costs^(c)	65		1			*		65			1			*
Integration costs and other^(c)	217		82			*		281			202			39
Restructuring charges and certain acquisition-related costs	365		85			*		295			172			72
Net periodic benefit costs	9		41			(78	)	19			103			(81	)
Additional depreciation—asset restructuring	6		12			(50	)	29			43			(33	)
Total implementation costs	40		48			(17	)	109			130			(17	)
Costs associated with acquisitions and cost-reduction/productivity initiatives^(d)	$	420	$	186		*		$	452		$	447		1
* Calculation not meaningful or results are equal to or greater than 100%.

Other (Income)/Deductions—Net



	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019		September 30, 2018			% Change	September 29, 2019		September 30, 2018			% Change
Other (income)/deductions––net	$	319	$	(414	)	*	$	537	$	(1,143	)	*
* Calculation not meaningful or results are equal to or greater than 100%.



	Three Months Ended							Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			% Change	September 29, 2019			September 30, 2018			% Change
Provision for taxes on income	$	3,047		$	66		*	$	2,566		$	1,270		*
Effective tax rate on continuing operations	28.4		%	1.6		%		13.4		%	9.9		%
* Calculation not meaningful or results are equal to or greater than 100%.

Adjusted income is calculated prior to considering certain significant purchase accounting impacts resulting from business combinations and net asset acquisitions. These impacts, primarily associated with Wyeth (acquired in 2009), Hospira (acquired in 2015), Anacor (acquired in 2016), Medivation (acquired in 2016) and Array (acquired in 2019), can include the incremental charge to cost of sales from the sale of acquired inventory that was written up to fair value, amortization related to the increase in fair value of the acquired finite-lived intangible assets, and to a much lesser extent, depreciation related to the increase/decrease in fair value of the acquired fixed assets (primarily manufacturing facilities), amortization related to the increase in fair value of acquired debt, and the fair value changes associated with contingent consideration. Therefore, the Adjusted income measure includes the revenues earned upon the sale of the acquired products without considering the acquisition cost of those products.

Adjusted income is calculated prior to considering transaction, integration, restructuring and additional depreciation costs associated with business combinations because these costs are unique to each transaction and represent costs that were incurred to restructure and integrate two businesses as a result of the acquisition decision. For additional clarity, only transaction costs, additional depreciation and restructuring and integration activities that are associated with a business combination or a net-asset acquisition are included in acquisition-related costs. We have made no adjustments for the resulting synergies.

Adjusted income is calculated prior to considering the results of operations included in discontinued operations, as well as any related gains or losses on the disposal of such operations.



	Three Months Ended September 29, 2019
IN MILLIONS, EXCEPT PER COMMON SHARE DATA	GAAP Reported			Purchase Accounting Adjustments^(a)			Acquisition-Related Items^(a)			Discontinued Operations^(a)			Certain Significant Items^(a)			Non-GAAP Adjusted
Revenues	$	12,680		$	—		$	—		$	—		$	—		$	12,680
Cost of sales	2,602			4			—			—			(147		)	2,459
Selling, informational and administrative expenses	3,260			1			—			—			(64		)	3,196
Research and development expenses	2,283			1			—			—			(343		)	1,940
Amortization of intangible assets	1,212			(1,140		)	—			—			—			72
Restructuring charges and certain acquisition-related costs	365			—			(300		)	—			(64		)	—
(Gain) on completion of Consumer Healthcare JV transaction	(8,087		)	—			—			—			8,087			—
Other (income)/deductions––net	319			(6		)	—			—			(281		)	32
Income from continuing operations before provision for taxes on income	10,727			1,141			300			—			(7,187		)	4,981
Provision for taxes on income^(b)	3,047			239			58			—			(2,581		)	763
Income from continuing operations	7,680			902			242			—			(4,606		)	4,218
Discontinued operations––net of tax	4			—			—			(4		)	—			—
Net income attributable to noncontrolling interests	4			—			—			—			—			4
Net income attributable to Pfizer Inc.	7,680			902			242			(4		)	(4,606		)	4,214
Earnings per common share attributable to Pfizer Inc.––diluted	1.36			0.16			0.04			—			(0.82		)	0.75



	Nine Months Ended September 29, 2019
IN MILLIONS, EXCEPT PER COMMON SHARE DATA	GAAP Reported			Purchase Accounting Adjustments^(a)			Acquisition-Related Items^(a)			Discontinued Operations^(a)			Certain Significant Items^(a)			Non-GAAP Adjusted
Revenues	$	39,062		$	—		$	—		$	—		$	—		$	39,062
Cost of sales	7,611			15			—			—			(196		)	7,430
Selling, informational and administrative expenses	10,110			2			(2		)	—			(139		)	9,971
Research and development expenses	5,827			3			—			—			(372		)	5,458
Amortization of intangible assets	3,578			(3,377		)	—			—			—			201
Restructuring charges and certain acquisition-related costs	295			—			(150		)	—			(145		)	—
(Gain) on completion of Consumer Healthcare JV transaction	(8,087		)	—			—			—			8,087			—
Other (income)/deductions––net	537			—			—			—			(740		)	(203		)
Income from continuing operations before provision for taxes on income	19,190			3,357			152			—			(6,495		)	16,204
Provision for taxes on income^(b)	2,566			685			69			—			(759		)	2,560
Income from continuing operations	16,625			2,673			83			—			(5,737		)	13,644
Discontinued operations––net of tax	4			—			—			(4		)	—			—
Net income attributable to noncontrolling interests	19			—			—			—			—			19
Net income attributable to Pfizer Inc.	16,609			2,673			83			(4		)	(5,737		)	13,625
Earnings per common share attributable to Pfizer Inc.––diluted	2.92			0.47			0.01			—			(1.01		)	2.39



	Three Months Ended September 30, 2018
IN MILLIONS, EXCEPT PER COMMON SHARE DATA	GAAP Reported			Purchase Accounting Adjustments^(a)			Acquisition-Related Items^(a)			Discontinued Operations^(a)			Certain Significant Items^(a)			Non-GAAP Adjusted
Revenues	$	13,298		$	—		$	—		$	—		$	—		$	13,298
Cost of sales	2,694			1			(3		)	—			(19		)	2,673
Selling, informational and administrative expenses	3,494			—			—			—			(23		)	3,471
Research and development expenses	2,008			1			—			—			(11		)	1,998
Amortization of intangible assets	1,253			(1,182		)	—			—			—			71
Restructuring charges and certain acquisition-related costs	85			—			(107		)	—			22			—
(Gain) on completion of Consumer Healthcare JV transaction	—			—			—			—			—			—
Other (income)/deductions––net	(414		)	(130		)	(2		)	—			329			(217		)
Income from continuing operations before provision for taxes on income	4,177			1,309			112			—			(298		)	5,300
Provision for taxes on income^(b)	66			263			21			—			363			712
Income from continuing operations	4,111			1,047			91			—			(661		)	4,588
Discontinued operations––net of tax	11			—			—			(11		)	—			—
Net income attributable to noncontrolling interests	8			—			—			—			—			8
Net income attributable to Pfizer Inc.	4,114			1,047			91			(11		)	(661		)	4,580
Earnings per common share attributable to Pfizer Inc.––diluted	0.69			0.17			0.02			—			(0.11		)	0.77



The following tables provide revenue and cost information by reportable operating segment and a reconciliation of that information to our condensed consolidated statements of income:
	Third Quarter of 2019
(MILLIONS OF DOLLARS)	Biopharma^(a)			Upjohn^(a)			Other^(b)			Non-GAAP Adjusted^(c)			Reconciling Items^(d)			GAAP Reported
Revenues	$	10,108		$	2,195		$	377		$	12,680		$	—		$	12,680
Cost of sales	1,869			425			164			2,459			143			2,602
% of revenue	18.5		%	19.4		%	*			19.4		%	*			20.5		%
Selling, informational and administrative expenses	1,602			360			1,234			3,196			64			3,260
Research and development expenses	256			57			1,628			1,940			343			2,283
Amortization of intangible assets	71			—			—			72			1,140			1,212
Restructuring charges and certain acquisition-related costs	—			—			—			—			365			365
(Gain) on completion of Consumer Healthcare JV transaction	—			—			—			—			(8,087		)	(8,087		)
Other (income)/deductions––net	(193		)	—			226			32			287			319
Income/(loss) from continuing operations before provision for taxes on income	6,503			1,353			(2,874		)	4,981			5,746			10,727

See end of tables for notes (a) through (d).



	Nine Months Ended September 29, 2019
(MILLIONS OF DOLLARS)	Biopharma^(a)			Upjohn^(a)			Other^(b)			Non-GAAP Adjusted^(c)			Reconciling Items^(d)			GAAP Reported
Revenues	$	28,887		$	8,077		$	2,098		$	39,062		$	—		$	39,062
Cost of sales	5,488			1,268			674			7,430			181			7,611
% of revenue	19.0		%	15.7		%	*			19.0		%	*			19.5		%
Selling, informational and administrative expenses	4,821			1,064			4,087			9,971			139			10,110
Research and development expenses	623			169			4,667			5,458			369			5,827
Amortization of intangible assets	201			1			—			201			3,377			3,578
Restructuring charges and certain acquisition-related costs	—			—			—			—			295			295
(Gain) on completion of Consumer Healthcare JV transaction	—			—			—			—			(8,087		)	(8,087		)
Other (income)/deductions––net	(729		)	(2		)	528			(203		)	740			537
Income/(loss) from continuing operations before provision for taxes on income	18,484			5,577			(7,857		)	16,204			2,986			19,190

For additional information, see Notes to Condensed Consolidated Financial Statements––Note 7E. Financial Instruments: Derivative Financial Instruments and Hedging Activities.

The following provides an analysis of the increase in Biopharma worldwide Revenues:

The following provides an analysis of the decrease in Upjohn worldwide Revenues:

Changes in the components of Accumulated other comprehensive loss ~~for the third quarter and first nine months of2017~~reflect the following:

The changes in our asset and liability accounts as of ~~October 1, 2017,~~September 29, 2019, compared to December 31, ~~2016~~2018, generally reflect, ~~among other things,~~and the impact of assets acquired and liabilities assumed as part of the acquisition of AstraZeneca’s small molecule anti-infectives business, measurement period adjustments related to the acquisition of Medivation, andfollowing explanations exclude, fluctuations in foreign currency exchange rates,. ~~The following explanations exclude~~ the impact of the ~~acquisition~~adoption of ~~AstraZeneca’s small molecule anti-infectives~~new accounting standards in the first quarter of 2019, our Consumer Healthcare business ~~measurement period adjustments related to the acquisition~~joint venture with GSK, and our acquisitions of ~~Medivation, as well as the sale of HIS to ICU Medical~~Array and ~~foreign exchange~~Therachon (see Notes to Condensed Consolidated Financial ~~Statements––~~Statements—Note ~~2. Acquisitions, Sale~~1B. Basis of ~~Hospira Infusion Systems Net Assets, Collaborative Arrangement~~Presentation and ~~Equity-Method Investments~~Significant Accounting Policies: Adoption of New Accounting Standards and Note ~~9. Identifiable Intangible~~2. Acquisitions, Equity-Method Investment and Assets and ~~Goodwill~~ Liabilities Held for Sale and Research and Development Arrangementfor additional information).

We rely largely on operating cash flows, short-term investments, short-term commercial paper borrowings and long-term debt to provide for our liquidity requirements. We continue our efforts to improve cash inflows through working capital efficiencies. We target specific areas of focus including accounts receivable, inventories, accounts payable, and other working capital, which allows us to optimize our operating cash flows. Due to our significant operating cash flows as well as our financial assets, access to capital markets and available lines of credit and revolving credit agreements, we believe that we have, and will maintain, the ability to meet our liquidity needs for the foreseeable future, which include:

For additional information about the sources and uses of our funds, see the “Analysis of the Condensed Consolidated Balance Sheets” and the “Analysis of the Condensed Consolidated Statements of Cash Flows” sections of this MD&A.

Many of our operations are conducted outside the U.S., and significant portions of our ~~cash, cash equivalents and short-term investments~~selected financial assets are held internationally. ~~We generally hold up to $10 billion of these short-term funds in U.S. tax jurisdictions.~~ The amount of funds held in U.S. tax jurisdictions can fluctuate due to the timing of receipts and payments in the ordinary course of business and due to other reasons, such as business-development activities. As part of our ongoing liquidity assessments, we regularly monitor the mix of domestic and international cash flows (both inflows and outflows). ~~Repatriation~~The changes in tax law under the TCJA, which includes transitioning U.S. international taxation from a worldwide tax system to a territorial tax system, allow us to more easily access our selected financial assets globally. The majority of ~~overseas funds can result~~our cash we held internationally as of year-end 2017 was repatriated in ~~additional U.S. federal, state~~2018.

Two major corporate debt-rating organizations, Moody’s and S&P, assign ratings to our short-term and long-term debt. A security rating is not a recommendation to buy, sell or hold securities and the rating is subject to revision or withdrawal at any time by the rating organization. Each rating should be evaluated independently of any other rating.



The following table provides the current ratings assigned by these rating agencies to our commercial paper and senior unsecured long-term debt:
NAME OF RATING AGENCY	Pfizer Commercial Paper	Pfizer Long-Term Debt	Outlook/Watch	Date of Last Rating Change
NAME OF RATING AGENCY	Rating	Rating	Outlook/Watch	Date of Last Rating Change
Moody’s^(a)	P-1	A1	Under Review for Downgrade	October 2009
S&P^(b)	A-1+	AAAA-	~~October 2009~~CreditWatch Negative	July 2019

The global economic environment has not had, nor do we anticipate it will have, a material impact on our liquidity or capital resources. Due to our significant operating cash flows, financial assets, access to capital markets and available lines of credit and revolving credit agreements, we continue to believe that we have, and will maintain, the ability to meet our liquidity needs for the foreseeable future. We monitor our liquidity position continuously in the face of evolving economic conditions.

In the ordinary course of business and in connection with the sale of assets and businesses and other transactions, we often indemnify our counterparties against certain liabilities that may arise in connection with a transaction or that are related to events and activities prior to or following a transaction. ~~These indemnifications typically pertain to environmental, tax, employee and/or product-related matters, and patent-infringement claims.~~ If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we ~~would~~may be required to reimburse the loss. These ~~indemnifications~~indemnification obligations generally are subject to ~~threshold amounts, specified claim periods and other~~various restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of ~~October 1, 2017, recorded amounts for~~September 29, 2019, the estimated fair value of ~~these indemnifications were~~our indemnity obligations was not significant.

Certain of our co-promotion or license agreements give our licensors or partners the rights to negotiate for, or in some cases to obtain under certain financial conditions, co-promotion or other rights in specified countries with respect to certain of our products.

See Notes to Condensed Consolidated Financial Statements––Note 1B. Basis of Presentation and Significant Accounting Policies: Adoption of New Accounting Standards.

~~Recently Issued Accounting Standards, Not Adopted as of~~ ~~October 1, 2017~~



~~The following table provides a brief description~~Recently Issued Accounting Standards, Not Adopted as of ~~recently issued accounting standards, not yet adopted:~~ September 29, 2019
Standard/Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
~~In May 2014, the FASB issued amended guidance related to~~ ~~revenue from contracts with customers~~. The new guidance introduces a new principles-based framework for revenue recognition and disclosure. Since its issuance the FASB has issued six ASUs, amending the guidance and effective date, and the SEC has rescinded certain related SEC guidance; the most recent of these changes was issued in December 2016.	~~January 1, 2018.~~	We have made substantial progress in completing our review of the impact of this guidance across our various business arrangements and revenue-related activities, and do not expect the adoption of this standard to have a material impact on our reported ~~Revenues~~ in our consolidated financial statements, revenue recognition processes, or our internal controls. We are reviewing our disclosures for revenue recognition and do not anticipate significant changes will be needed to conform with the disclosure requirements of the new guidance. The interpretation and applicability of the new revenue recognition standard to collaboration arrangements in certain industries is still being assessed. We expect that milestone payments received in our collaboration agreements, which are recorded in ~~Other~~ (~~income~~)~~/deductions~~––~~net~~, and currently amortized over the life of the agreement, will, for many arrangements, be amortized over the remaining development period or sooner, if there is a distinct and separable licensing component. We are required to apply the new rules to existing contracts as if the new principles had always existed, and therefore, upon adoption, we expect to record a cumulative effect adjustment to ~~Retained earnings~~ as of the adoption date in the range of $350 million to $550 million to accelerate what would have been future income under the current rules into prior periods. The financial statement impact on pre-tax income is expected to be less than $100 million in any future annual period. We continue to monitor additional changes, modifications, clarifications or interpretations undertaken by the FASB, which may impact our current conclusions. In addition, we continue to monitor other changes, such as changes in our business, new collaboration arrangements, business combinations, etc., which may impact our current conclusions prior to the adoption date.

The operating segment information provided in this report 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.

Information with respect to legal proceedings and contingencies required by this Item is incorporated herein by reference to Notes to Condensed Consolidated Financial Statements––Note 12A. ~~Commitments~~Contingencies and ~~Contingencies:~~Certain Commitments: Legal Proceedings in Part I, Item 1, of this Quarterly Report on Form 10-Q.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be disclosed in our periodic reports filed with the SEC.

During our most recent fiscal quarter, there has not been any change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The information required by this Item is incorporated herein by reference to Notes to Condensed Consolidated Financial Statements––Note 12A. ~~Commitments~~Contingencies and ~~Contingencies:~~Certain Commitments: Legal Proceedings in Part I, Item 1, of this Quarterly Report on Form 10-Q.

The following table provides certain information with respect to our purchases of shares of the Company’s common stock during the third fiscal quarter of ~~2017~~2019:

Period
Total Number of
Shares Purchased^(b)

Average Price
Paid per Share^(b)

Total Number of Shares Purchased as Part of Publicly Announced Plan

Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan^(a)

July 3, 2017 through July 30, 2017 12,102
$ 33.46
—
$ 6,355,862,076
July 31, 2017 through August 27, 2017 51,568
$ 33.03
—
$ 6,355,862,076
August 28, 2017 through October 1, 2017 33,579
$ 34.06
—
$ 6,355,862,076
Total 97,249
$ 33.44
—



Period	Total Number of Shares Purchased^(a)^, ^(b⁾	Average Price Paid per Share^(b)		Total Number of Shares Purchased as Part of Publicly Announced Plan^(a)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan^(a)
July 1, 2019 through July 28, 2019	30,230	$	43.28	—	$	5,292,881,709
July 29, 2019 through August 25, 2019	33,620,322	$	41.42	33,501,384	$	5,292,881,709
August 26, 2019 through September 29, 2019	23,422	$	37.78	—	$	5,292,881,709
Total	33,673,974	$	41.41	33,501,384

None.



~~DELAWARE~~ Delaware	13-5315170
(State of Incorporation)	~~13-5315170~~ (I.R.S. Employer Identification No.)



Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.05 par value	PFE	New York Stock Exchange
0.000% Notes due 2020	PFE20A	New York Stock Exchange
0.250% Notes due 2022	PFE22	New York Stock Exchange
1.000% Notes due 2027	PFE27	New York Stock Exchange



~~2016~~2018 Financial Report	Financial Report for the fiscal year ended December 31, ~~2016,~~2018, which was filed as Exhibit 13 to the Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~2018
~~2016~~2018 Form 10-K	Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~
~~AAV~~	~~Adeno-Associated Virus~~2018
ACA (Also referred to as U.S. Healthcare Legislation)	U.S. Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act
ACIP	Advisory Committee on Immunization Practices
Akcea	Akcea Therapeutics, Inc.
ALK	anaplastic lymphoma kinase
~~Allergan~~	~~Allergan plc~~
Alliance revenues	Revenues from alliance agreements under which we co-promote products discovered or developed by other companies or us
Allogene	Allogene Therapeutics, Inc.
Anacor	Anacor Pharmaceuticals, Inc.
AOCI	Accumulated Other Comprehensive Income
Array	Array BioPharma Inc.
Astellas	Astellas Pharma ~~U.S.~~Inc., Astellas US LLC and Astellas Pharma US, Inc.
~~ASU~~Bain Capital	~~Accounting Standards Update~~
~~ATM-AVI~~	~~aztreonam-avibactam~~
~~Avillion~~	~~Avillion LLP~~Bain Capital Private Equity and Bain Capital Life Sciences
Bamboo	Bamboo Therapeutics, Inc.
Biopharma	Pfizer Biopharmaceuticals Group
BMS	Bristol-Myers Squibb Company
CAR T	chimeric antigen receptor T cell
CDC	U.S. Centers for Disease Control and Prevention
~~Cellectis~~Cerevel	~~Cellectis SA~~Cerevel Therapeutics, LLC
cGMP	current Good Manufacturing Practices
Citibank	Citibank, N.A.
~~cGMPs~~	~~current Good Manufacturing Practices~~
Developed Markets	U.S., Western Europe, Japan, Canada, ~~Australia,~~ South Korea, Australia, Scandinavian countries, Finland and New Zealand
~~EEA~~EGFR	~~European Economic Area~~epidermal growth factor receptor
EH	Essential Health
EMA	European Medicines Agency
Emerging Markets	Includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, ~~Africa,~~ Eastern ~~Europe, Central~~ Europe, the Middle East, Africa, Central Europe and Turkey
EPS	earnings per share
EU	European Union
~~EURIBOR~~	~~Euro Interbank Offered Rate~~
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FDA	U.S. Food and Drug Administration
GAAP	Generally Accepted Accounting Principles
GIST	gastrointestinal stromal tumors
GPD	Global Product Development organization
~~HER2-~~GSK	GlaxoSmithKline plc
GS&Co.	Goldman, Sachs & Co. LLC
hGH-CTP	human ~~epidermal~~ growth ~~factor receptor 2-negative~~hormone
HIS	Hospira Infusion Systems
~~Hisun~~	~~Zhejiang Hisun Pharmaceuticals Co., Ltd.~~
Hisun Pfizer	Hisun Pfizer Pharmaceuticals Company Limited
Hospira	Hospira, Inc.
HR+	hormone receptor-positive
ICU Medical	ICU Medical, Inc.
IH	Innovative Health
~~InnoPharma~~Ionis	~~InnoPharma,~~Ionis Pharmaceuticals, Inc.
IPR&D	in-process research and development
IRS	U.S. Internal Revenue Service
IV	intravenous
Janssen	Janssen Biotech Inc.
~~King~~	~~King Pharmaceuticals, Inc.~~
~~LDL~~	~~low density lipoprotein~~



	Nine Months Ended
(MILLIONS OF DOLLARS)	October 1, 2017			October 2, 2016
Operating Activities
Net income before allocation to noncontrolling interests^(a)	$	9,066		$	6,465
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	4,695			4,208
Asset write-offs and impairments	326			1,146
Loss on sale of HIS net assets	52			1,422
Deferred taxes from continuing operations	241			(1,335		)
Share-based compensation expense	595			532
Benefit plan contributions in excess of expense	(1,042		)	(775		)
Other adjustments, net	(561		)	68
Other changes in assets and liabilities, net of acquisitions and divestitures^(a)	(3,644		)	(1,582		)
Net cash provided by operating activities^(a)	9,728			10,151

Investing Activities
Purchases of property, plant and equipment	(1,256		)	(1,134		)
Purchases of short-term investments	(6,469		)	(15,170		)
Proceeds from redemptions/sales of short-term investments	5,783			20,685
Net proceeds from redemptions/sales of short-term investments with original maturities of three months or less	2,758			6,485
Purchases of long-term investments	(2,526		)	(4,771		)
Proceeds from redemptions/sales of long-term investments	2,417			6,915
Acquisitions of businesses, net of cash acquired	(1,000		)	(17,679		)
Acquisitions of intangible assets	(188		)	(96		)
Other investing activities, net	519			60
Net cash provided by/(used in) investing activities	38			(4,704		)

Financing Activities
Proceeds from short-term borrowings	7,003			6,397
Principal payments on short-term borrowings	(7,691		)	(3,321		)
Net proceeds from/(payments on) short-term borrowings with original maturities of three months or less	555			(963		)
Proceeds from issuance of long-term debt	5,273			5,031
Principal payments on long-term debt	(4,474		)	(4,317		)
Purchases of common stock	(5,000		)	(5,000		)
Cash dividends paid	(5,750		)	(5,496		)
Proceeds from exercise of stock options	656			946
Other financing activities, net^(a)	(223		)	(192		)
Net cash used in financing activities^(a)	(9,650		)	(6,915		)
Effect of exchange-rate changes on cash and cash equivalents	67			(79		)
Net increase/(decrease) in cash and cash equivalents	184			(1,547		)
Cash and cash equivalents, beginning	2,595			3,641
Cash and cash equivalents, end	$	2,779		$	2,094

Supplemental Cash Flow Information
Non-cash transactions:
Receipt of ICU Medical common stock^(b)	$	428		$	—
Promissory note from ICU Medical^(b)	75			—
Cash paid (received) during the period for:
Income taxes	$	1,424		$	1,430
Interest	1,101			1,177
Interest rate hedges	(183		)	(356		)



The following table provides information about the balance sheet classification of these accruals:
(MILLIONS OF DOLLARS)	September 29, 2019		December 31, 2018
Reserve against Trade accounts receivable, less allowance for doubtful accounts	$	1,203	$	1,288
Other current liabilities:
Accrued rebates	3,275		3,208
Other accruals	617		531
Other noncurrent liabilities	463		399
Total accrued rebates and other accruals	$	5,557	$	5,426



J&J	Johnson & Johnson
JV	Joint Venture
King	King Pharmaceuticals LLC (formerly King Pharmaceuticals, Inc.)
LDL	low density lipoprotein
LEP	Legacy Established Products
LIBOR	London Interbank Offered Rate
Lilly	Eli Lilly & Company
LOE	loss of exclusivity
MCC	Merkel cell carcinoma
MCO	~~Managed Care Organization~~managed care organization
mCRC	metastatic colorectal cancer
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Medivation	Medivation LLC (formerly Medivation, Inc.)
Merck	Merck & Co., Inc.
Meridian	Meridian Medical Technologies, Inc.
Moody’s	Moody’s Investors Service
Mylan	Mylan N.V.
NDA	new drug application
~~NovaQuest~~	~~NovaQuest Co-Investment Fund V, L.P.~~
NSCLC	non-small cell lung cancer
NYSE	New York Stock Exchange
OPKO	OPKO Health, Inc.
OTC	over-the-counter
PARP	poly ADP ribose polymerase
PBM	~~Pharmacy Benefit Manager~~pharmacy benefit manager
Pharmacia	Pharmacia Corporation
PP&E	~~Property,~~property, plant & equipment
PsA	psoriatic arthritis
Quarterly Report on Form 10-Q	Quarterly Report on Form 10-Q for the quarterly period ended ~~October 1, 2017~~September 29, 2019
RA	rheumatoid arthritis
RCC	renal cell carcinoma
R&D	research and development
~~RPI~~ROU	~~RPI Finance Trust~~right of use
Sandoz	Sandoz, Inc., a division of Novartis AG
~~Sangamo~~	~~Sangamo Therapeutics, Inc.~~
SEC	U.S. Securities and Exchange Commission
SFJ	SFJ Pharmaceuticals Group
~~SIP~~Shire	~~Sterile Injectable Pharmaceuticals~~Shire International GmbH
SI&A	selling, informational and administrative
S&P	Standard and Poor’s
~~Teuto~~TCJA	~~Laboratório Teuto Brasileiro S.A.~~legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017
Therachon	Therachon Holding AG
UC	ulcerative colitis
U.K.	United Kingdom
U.S.	United States
ViiV	ViiV Healthcare Limited
~~WRD~~VBP	Volume-based procurement program
WRDM	Worldwide Research, Development and ~~Development~~
~~Zoetis~~	~~Zoetis Inc.~~Medical


^(a)	Excludes amortization of intangible assets, except as disclosed in Note 9A. Identifiable Intangible Assets and Goodwill: Identifiable Intangible Assets.


^(b)	Amounts for the three and nine months ended October 2, 2016 have been revised from previously reported amounts to reflect the adoption of a new accounting standard in the fourth quarter of 2016, as of January 1, 2016. For additional information, see ~~Note 1B~~. ~~Basis of Presentation and Significant Accounting Policies––Adoption of New Accounting Standards~~.


^(b)	Reclassified into Other (income)/deductions—net and Cost of sales in the condensed consolidated statements of income. For additional information on amounts reclassified into Other (income)/deductions—net and Cost of sales, see Note ~~7F.~~7E. Financial Instruments: Derivative Financial Instruments and Hedging Activities.


^(d)	~~See~~Significant Accounting Policies: Adoption of New Accounting Standards in 2018 ~~Note 5C. Tax Matters: Tax Provision/(Benefit) on Other Comprehensive Income.~~in our 2018 Financial Report.



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



For operating leases, the ROU assets and liabilities are presented in our condensed consolidated balance sheet as follows:
		Balance at
(MILLIONS OF DOLLARS)	Balance Sheet Classification	September 29, 2019
ROU assets	Other noncurrent assets	$	1,306
Lease liabilities (short-term)	Other current liabilities	281
Lease liabilities (long-term)	Other noncurrent liabilities	1,037



Our total lease costs are as follows:
	Three Months Ended			Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 29, 2019
Operating lease cost	$	111		$	310
Variable lease cost	74			192
Sublease income	(10		)	(31		)
Total lease cost	$	174		$	471



Other supplemental information includes the following:
	Weighted-Average Remaining Contractual Lease Term (Years) as of	Weighted-Average Discount Rate as of
(MILLIONS OF DOLLARS)	September 29, 2019	September 29, 2019		Nine Months Ended September 29, 2019
Operating leases	6.8	3.6	%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases				$	244
(Gains)/losses on sale and leaseback transactions, net				(32		)
ROU assets obtained in exchange for new operating lease liabilities				$	250



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 September 29, 2019:
(MILLIONS OF DOLLARS)
Period	Operating Lease Liabilities
Next one year^(a)	$	322
1-2 years	279
2-3 years	222
3-4 years	176
4-5 years	110
Thereafter	406
Total undiscounted lease payments	1,516
Less: Imputed interest	197
Present Value of Minimum Lease Payments	1,319
Less: Current portion	281
Noncurrent portion	$	1,037


^(a)	Reflects lease payments due within 12 months subsequent to the balance sheet date.



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



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)	December 31, 2018
Assets Held for Sale
Cash and cash equivalents	$	32
Trade accounts receivable, less allowance for doubtful accounts	532
Inventories	538
Other current assets	56
PP&E	675
Identifiable intangible assets, less accumulated amortization	5,763
Goodwill	1,972
Noncurrent deferred tax assets and other noncurrent tax assets	54
Other noncurrent assets	57
Total Consumer Healthcare assets held for sale	9,678
Other assets held for sale^(a)	46
Assets held for sale	$	9,725

Liabilities Held for Sale

Trade accounts payable	$	406
Income taxes payable	39
Accrued compensation and related items	93
Other current liabilities	353
Pension benefit obligations, net	39
Postretirement benefit obligations, net	33
Noncurrent deferred tax liabilities	870
Other noncurrent liabilities	56
Total Consumer Healthcare liabilities held for sale	$	1,890


•	For the third quarter of ~~2017~~2019, IHBiopharma ($~~4 million)~~10 million charge); EHUpjohn ($~~1 million); WRD/GPD ($15 million); manufacturing operations ($47 million)~~6 million credit); and ~~Corporate~~Other ($~~25 million)~~79 million charge).


•	For the first nine months of ~~2017~~2019, IHBiopharma ($~~10 million)~~38 million credit); EHUpjohn ($927 million ~~income); WRD/GPD ($29 million); manufacturing operations ($70 million)~~credit); and ~~Corporate~~Other ($~~51 million)~~15 million charge).


•	~~For the first nine months of~~ ~~2016, IH ($162 million); EH ($19 million); WRD/GPD ($104 million); manufacturing operations ($181 million); and Corporate ($107 million).~~


^(b)	~~The asset impairment charges~~Transaction costs represent external costs for banking, legal, accounting and other similar services. In the third quarter and ~~the~~ first nine months of ~~2017~~ ~~are largely associated with~~2019, transaction costs relate to our ~~acquisitions~~acquisition of ~~Hospira and Medivation.~~ Array.


^(e)(d)	Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.


^(f)(e)	Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.



The following table provides the components of and changes in our restructuring accruals:
(MILLIONS OF DOLLARS)	Employee Termination Costs			Asset Impairment Charges			Exit Costs			Accrual
Balance, December 31, 2016^(a)	$	1,547		$	—		$	36		$	1,583
Provision	9			126			16			150
Utilization and other^(b)	(401		)	(126		)	(24		)	(551		)
Balance, October 1, 2017^(c)	$	1,154		$	—		$	28		$	1,182


^(a)	Included in Other current liabilities ($~~863~~823 million) and Other noncurrent liabilities ($~~720~~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)(d)	Included in Other current liabilities ($~~533~~535 million) and Other noncurrent liabilities ($~~650~~199 million).



The following table provides components of Other (income)/deductions––net:
	Three Months Ended						Nine Months Ended
(MILLIONS OF DOLLARS)	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Interest income^(a)	$	(60	)	$	(82	)	(185		)	(240		)
Interest expense^(a)	409			310			1,158			946
Net interest expense	348			228			973			706
Royalty-related income^(b)	(155		)	(143		)	(475		)	(360		)
Net gains on asset disposals	(32		)	(4		)	(33		)	(19		)
Net gains recognized during the period on investments in equity securities^(c)	(6		)	(85		)	(153		)	(460		)
Net realized losses on sales of investments in debt securities	—			8			—			19
Income from collaborations, out-licensing arrangements and sales of compound/product rights^(d)	(20		)	(139		)	(124		)	(455		)
Net periodic benefit credits other than service costs^(e)	(19		)	(65		)	(110		)	(231		)
Certain legal matters, net^(f)	64			37			84			(70		)
Certain asset impairments^(g)	28			(1		)	188			40
Business and legal entity alignment costs^(h)	87			1			343			5
Net losses on early retirement of debt⁽ⁱ⁾	—			—			138			3
Other, net^(j)	24			(252		)	(294		)	(322		)
Other (income)/deductions––net	$	319		$	(414	)	$	537		$	(1,143	)


^(f)	For the first nine months of 2018, the net credits primarily represented the reversal of a legal accrual where a loss was no longer deemed probable. ~~In addition, the first nine months of~~ ~~2016~~ ~~includes a settlement related to a patent matter.~~


^(g)	~~In the third quarter and first nine months of~~ ~~2017~~ ~~and~~ ~~2016~~,2018, mainly 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 nine 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.



The following table provides additional information about the intangible assets that were impaired during 2019 in Other (income)/deductions:
	Fair Value^(a)								Nine Months Ended September 29, 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



The following table provides additional information about the intangible assets that were impaired during 2017 in Other (income)/deductions––net:
	Fair Value^(a)								Nine Months Ended October 1, 2017
(MILLIONS OF DOLLARS)	Amount		Level 1		Level 2		Level 3		Impairment
Intangible assets––Developed technology rights^(b)	$	50	$	—	$	—	$	50	$	127


^(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.