Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 30, 2014 | 5-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'PFE | ' |
Entity Registrant Name | 'PFIZER INC | ' |
Entity Central Index Key | '0000078003 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 6,378,718,293 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Revenues | $11,353 | $12,410 | ||
Costs and expenses: | ' | ' | ||
Cost of sales(a) | 2,045 | [1] | 2,263 | [1] |
Selling, informational and administrative expenses(a) | 3,040 | [1] | 3,217 | [1] |
Research and development expenses(a) | 1,623 | [1] | 1,710 | [1] |
Amortization of intangible assets | 1,117 | 1,219 | ||
Restructuring charges and certain acquisition-related costs | 58 | 131 | ||
Other deductions––net | 623 | 145 | ||
Income from continuing operations before provision for taxes on income | 2,847 | [2] | 3,725 | [2] |
Provision for taxes on income | 582 | 1,109 | ||
Income from continuing operations | 2,265 | 2,616 | ||
Discontinued operations: | ' | ' | ||
Discontinued operations––net of tax | 73 | 149 | ||
Net income before allocation to noncontrolling interests | 2,338 | 2,765 | ||
Net Income (Loss) Attributable to Noncontrolling Interests | 9 | 15 | ||
Net income attributable to Pfizer Inc. | $2,329 | $2,750 | ||
Earnings per common share––basic: | ' | ' | ||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $0.35 | $0.36 | ||
Discontinued operations––net of tax | $0.01 | $0.02 | ||
Net income attributable to Pfizer Inc. common shareholders | $0.36 | $0.38 | ||
Earnings per common share––diluted: | ' | ' | ||
Income from continuing operations attributable to Pfizer Inc. common shareholders | $0.35 | $0.36 | ||
Discontinued operations––net of tax | $0.01 | $0.02 | ||
Net income attributable to Pfizer Inc. common shareholders | $0.36 | $0.38 | ||
Weighted-average shares––basic | 6,389 | 7,187 | ||
Weighted-average shares––diluted | 6,476 | 7,269 | ||
Cash dividends paid per common share | $0.26 | $0.24 | ||
[1] | Excludes amortization of intangible assets, except as disclosed in Note 9B. Goodwill and Other Intangible Assets: Other Intangible Assets. | |||
[2] | Income from continuing operations before provision for taxes on income. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Net income before allocation to noncontrolling interests | $2,338 | $2,765 | ||
Other Comprehensive Income/(Loss) | ' | ' | ||
Foreign currency translation adjustments | -75 | -292 | ||
Reclassification adjustments(a) | -62 | [1] | 0 | [1] |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | -137 | -292 | ||
Unrealized holding losses on derivative financial instruments | -58 | -396 | ||
Reclassification adjustments for realized losses(b) | 12 | [2] | 526 | [2] |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Total | -46 | 130 | ||
Unrealized holding gains/(losses) on available-for-sale securities | 108 | -10 | ||
Reclassification adjustments for realized gains(b) | -99 | [2] | -158 | [2] |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Total | 9 | -168 | ||
Benefit plans: actuarial gains, net | 6 | 22 | ||
Reclassification adjustments related to amortization(c) | 49 | [3] | 151 | [3] |
Reclassification adjustments related to settlements, net(c) | 21 | [3] | 55 | [3] |
Other | -17 | 97 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax, Total | 59 | 325 | ||
Benefit plans: prior service credits and other | 0 | 3 | ||
Reclassification adjustments related to amortization(c) | -18 | [3] | -16 | [3] |
Reclassification adjustments related to curtailments, net(c) | -4 | [3] | -9 | [3] |
Other | -1 | -2 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost, before Tax | -23 | -24 | ||
Other comprehensive loss, before tax | -138 | -29 | ||
Tax provision/(benefit) on other comprehensive loss(d) | -17 | [4] | 176 | [4] |
Other comprehensive loss before allocation to noncontrolling interests | -121 | -205 | ||
Comprehensive Income | ' | ' | ||
Comprehensive income before allocation to noncontrolling interests | 2,217 | 2,560 | ||
Less: Comprehensive income attributable to noncontrolling interests | 7 | 12 | ||
Comprehensive income attributable to Pfizer Inc. | $2,210 | $2,548 | ||
[1] | Reclassified into Discontinued operations—net of tax in the condensed consolidated statements of income. | |||
[2] | Reclassified into Other deductions—net in the condensed consolidated statements of income. | |||
[3] | Generally reclassified, as part of net periodic pension cost, into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, in the condensed consolidated statements of income. For additional information, see Note 10. Pension and Postretirement Benefit Plans. | |||
[4] | See Note 5C. Tax Matters: Taxes on Items of Other Comprehensive Loss. |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $2,862 | $2,183 | ||
Short-term investments | 31,019 | 30,225 | ||
Accounts receivable, less allowance for doubtful accounts | 9,399 | 9,357 | ||
Inventories | 6,066 | 6,166 | ||
Current deferred tax assets and other current tax assets | 4,974 | 4,624 | ||
Other current assets | 3,473 | 3,689 | ||
Total current assets | 57,793 | 56,244 | ||
Long-term investments | 15,822 | 16,406 | ||
Property, plant and equipment, less accumulated depreciation | 12,347 | 12,397 | ||
Goodwill | 42,467 | [1] | 42,519 | |
Identifiable intangible assets, less accumulated amortization | 38,122 | [2] | 39,385 | [2] |
Noncurrent deferred tax assets and other noncurrent tax assets | 1,498 | 1,554 | ||
Other noncurrent assets | 3,759 | 3,596 | ||
Total assets | 171,808 | 172,101 | ||
Liabilities and Equity | ' | ' | ||
Short-term borrowings, including current portion of long-term debt | 9,319 | [3],[4] | 6,027 | [3],[4] |
Accounts payable | 2,546 | 3,234 | ||
Dividends payable | 1 | 1,663 | ||
Income taxes payable | 851 | 678 | ||
Accrued compensation and related items | 1,758 | 1,792 | ||
Other current liabilities | 10,315 | 9,972 | ||
Total current liabilities | 24,790 | 23,366 | ||
Long-term debt | 27,649 | [4],[5],[6] | 30,462 | [4],[5],[6] |
Pension benefit obligations, net | 4,533 | 4,635 | ||
Postretirement benefit obligations, net | 2,645 | 2,668 | ||
Noncurrent deferred tax liabilities | 25,923 | 25,590 | ||
Other taxes payable | 3,784 | 3,993 | ||
Other noncurrent liabilities | 4,416 | 4,767 | ||
Total liabilities | 93,740 | 95,481 | ||
Commitments and Contingencies | ' | ' | ||
Preferred stock | 32 | 33 | ||
Common stock | 454 | 453 | ||
Additional paid-in capital | 77,849 | 77,283 | ||
Treasury stock | -69,204 | -67,923 | ||
Retained earnings | 72,028 | 69,732 | ||
Accumulated other comprehensive loss | -3,390 | -3,271 | ||
Total Pfizer Inc. shareholders’ equity | 77,769 | 76,307 | ||
Equity attributable to noncontrolling interests | 299 | 313 | ||
Total equity | 78,068 | 76,620 | ||
Total liabilities and equity | $171,808 | $172,101 | ||
[1] | The amount to be allocated includes the goodwill associated with our former biopharmaceutical operating segments (see above), for which the allocation to our new reporting units, and, as a result, to the new operating segments, is pending. | |||
[2] | The decrease is primarily related to amortization and asset impairment charges. For information about impairments of intangible assets, see Note 4. Other Deductions—Net. | |||
[3] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 30, 2014 or December 31, 2013. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs. | |||
[4] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | |||
[5] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | |||
[6] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Operating Activities | ' | ' | ||
Net income before allocation to noncontrolling interests | $2,338 | $2,765 | ||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ' | ' | ||
Depreciation and amortization | 1,456 | 1,774 | ||
Asset write-offs, impairments and related charges | 137 | 513 | ||
Gain associated with the transfer of certain product rights to an equity-method investment | 0 | [1] | -490 | [1] |
Deferred taxes from continuing operations | 345 | 920 | ||
Deferred taxes from discontinued operations | 0 | 7 | ||
Share-based compensation expense | 143 | 189 | ||
Benefit plan contributions (in excess of)/less than expense | -99 | 71 | ||
Other non-cash adjustments, net | -294 | -119 | ||
Other changes in assets and liabilities, net of acquisitions and divestitures | -1,091 | -3,327 | ||
Net cash provided by operating activities | 2,935 | 2,303 | ||
Investing Activities | ' | ' | ||
Purchases of property, plant and equipment | -292 | -202 | ||
Purchases of short-term investments | -8,721 | -10,742 | ||
Proceeds from redemptions and sales of short-term investments | 7,569 | 6,386 | ||
Net (purchases of)/proceeds from redemptions/sales of investments with original maturities of 90 days or less | 1,500 | -5,596 | ||
Purchases of long-term investments | -1,808 | -2,246 | ||
Proceeds from redemptions and sales of long-term investments | 1,454 | 1,444 | ||
Acquisitions of intangible assets | -6 | -126 | ||
Other investing activities | 206 | 156 | ||
Net cash used in investing activities | -98 | -10,926 | ||
Financing Activities | ' | ' | ||
Proceeds from short-term borrowings | 0 | 1,031 | ||
Principal payments on short-term borrowings | -3 | -1,031 | ||
Net proceeds from short-term borrowings with original maturities of 90 days or less | 1,031 | 3,485 | ||
Proceeds from issuance of long-term debt(a) | 0 | [2] | 2,624 | [2] |
Principal payments on long-term debt | -752 | -2 | ||
Purchases of common stock | -1,197 | -4,626 | ||
Cash dividends paid | -1,662 | -1,735 | ||
Proceeds from exercise of stock options | 425 | 642 | ||
Other financing activities | 25 | 46 | ||
Net cash provided by/(used in) financing activities | -2,133 | 434 | ||
Effect of exchange-rate changes on cash and cash equivalents | -25 | 0 | ||
Net increase/(decrease) in cash and cash equivalents | 679 | -8,189 | ||
Cash and cash equivalents, beginning | 2,183 | 10,081 | ||
Cash and cash equivalents, end | 2,862 | 1,892 | ||
Non-cash transactions: | ' | ' | ||
Noncash transaction exchange of subsidiary common stock for the retirement of company commercial paper | 0 | [3] | 2,479 | [3] |
Non-cash exchange of subsidiary senior notes for the retirement of company commercial paper | 0 | [3] | 992 | [3] |
Transfer of certain product rights to an equity-method investment(c) | 0 | [4] | 1,233 | [4] |
Cash paid during the period for: | ' | ' | ||
Income taxes | 536 | 548 | ||
Interest | $361 | $433 | ||
[1] | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | |||
[2] | Includes $2.6 billion from the issuance of senior notes by Zoetis (our former Animal Health subsidiary), net of the $1.0 billion non-cash exchange of Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012. See Note 2A. Divestiture and Equity-Method Investments: Divestiture. | |||
[3] | See Note 2A. Divestiture and Equity-Method Investments: Divestiture. | |||
[4] | See Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) (USD $) | 3 Months Ended |
Mar. 31, 2013 | |
Zoetis [Member] | |
Proceeds from issuance of long-term debt(a) | $2,600,000,000 |
Non-cash exchange of subsidiary senior notes for the retirement of company commercial paper | $1,000,000,000 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended | |
Mar. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation and Significant Accounting Policies | ' | |
Basis of Presentation and Significant Accounting Policies | ||
A. Basis of Presentation | ||
We prepared the condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. | ||
Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three months ended February 23, 2014 and February 24, 2013. | ||
In the condensed consolidated statements of comprehensive income, we have revised the presentation of other comprehensive income/(loss) shown in prior periods for derivative financial instruments and available-for-sale securities, as certain items had been reported net. | ||
On June 24, 2013, we completed the full disposition of our Animal Health business, Zoetis Inc. (Zoetis). On February 6, 2013, an initial public offering (IPO) of the Class A common stock of Zoetis was completed, pursuant to which we sold 99.015 million shares of Class A common stock of Zoetis, which represented approximately 19.8% of the total outstanding Zoetis shares. The operating results of this business are reported as Discontinued operations––net of tax in the condensed consolidated statement of income for the three months ended March 31, 2013. Prior periods have been restated. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | ||
Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. | ||
We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our condensed consolidated balance sheets and condensed consolidated statements of income. | ||
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2013 Annual Report on Form 10-K. | ||
B. Adoption of New Accounting Standards | ||
We adopted the following new accounting and disclosure standards as of January 1, 2014 and there were no impacts to our condensed consolidated financial statements: | ||
• | A new standard that clarified the accounting for cumulative translation adjustment (CTA) upon derecognition of a group of assets that is a business or an equity-method investment within a foreign entity. | |
• | A new standard regarding the measurement of obligations resulting from joint and several liability arrangements that may include debt agreements, other contractual obligations and settled litigation or judicial rulings. | |
C. Fair Value | ||
Our fair value methodologies depend on the following types of inputs: | ||
• | Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). | |
• | Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). | |
• | Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). | |
A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. |
Divestiture_and_EquityMethod_I
Divestiture and Equity-Method Investment | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Business Combinations, Discontinued Operations, And Disposal Groups [Abstract] | ' | ||||||||
Acquisitions and Divestitures | ' | ||||||||
Divestiture and Equity-Method Investments | |||||||||
A. Divestiture | |||||||||
Animal Health Business—(Zoetis) | |||||||||
On June 24, 2013, we completed the full disposition of Zoetis. The full disposition was completed through a series of steps, including, in the first quarter of 2013, the formation of Zoetis and an IPO of an approximate 19.8% interest in Zoetis and, in the second quarter of 2013, an exchange offer for the remaining 80.2% interest. | |||||||||
In the first quarter of 2013: | |||||||||
• | Formation of Zoetis—On January 28, 2013, our then wholly owned subsidiary, Zoetis, issued $3.65 billion aggregate principal amount of senior notes. Also, on January 28, 2013, we transferred to Zoetis substantially all of the assets and liabilities of our Animal Health business in exchange for all of the Class A and Class B common stock of Zoetis, $1.0 billion of the $3.65 billion of Zoetis senior notes, and an amount of cash equal to substantially all of the cash proceeds received by Zoetis from the remaining $2.65 billion of senior notes issued. The $1.0 billion of Zoetis senior notes received by Pfizer were exchanged by Pfizer for the retirement of Pfizer commercial paper issued in 2012, and the cash proceeds received by Pfizer of approximately $2.6 billion were used for dividends and stock buybacks. | ||||||||
• | Initial Public Offering (19.8% Interest)—On February 6, 2013, an IPO of the Class A common stock of Zoetis was completed, pursuant to which we sold 99.015 million shares of Class A common stock of Zoetis (all of the Class A common stock, including shares sold pursuant to the underwriters' over-allotment option to purchase additional shares, which was exercised in full) in exchange for the retirement of approximately $2.5 billion of Pfizer commercial paper issued in 2013. The Class A common stock sold in the IPO represented approximately 19.8% of the total outstanding Zoetis shares. The excess of the consideration received over the net book value of our divested interest was approximately $2.3 billion and was recorded in Additional paid-in capital. | ||||||||
In the second quarter of 2013: | |||||||||
• | Exchange Offer (80.2% Interest)—On June 24, 2013, we exchanged all of our remaining interest in Zoetis for Pfizer common stock. | ||||||||
The operating results of the Animal Health business are reported as Discontinued operations––net of tax in the condensed consolidated statement of income for the three months ended March 31, 2013. | |||||||||
Total Discontinued Operations | |||||||||
The following table provides the components of Discontinued operations—net of tax: | |||||||||
Three Months Ended | |||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
Revenues | $ | — | $ | 1,089 | |||||
Pre-tax income from discontinued operations | 5 | 200 | |||||||
Provision for taxes on income(a) | — | 51 | |||||||
Income from discontinued operations––net of tax | 5 | 149 | |||||||
Pre-tax gain on disposal of discontinued operations | 64 | — | |||||||
Benefit for taxes on income | (4 | ) | — | ||||||
Gain on disposal of discontinued operations––net of tax(b) | 68 | — | |||||||
Discontinued operations––net of tax | $ | 73 | $ | 149 | |||||
(a) | Includes a deferred tax expense of $7 million for the three months ended March 31, 2013. | ||||||||
(b) | For the three months ended March 30, 2014, represents post-close adjustments. | ||||||||
The net cash flows of our discontinued operations for each of the categories of operating, investing and financing activities are not significant for the three months ended March 31, 2013, except that financing activities include the cash proceeds from the issuance of senior notes by Zoetis. | |||||||||
B. Equity-Method Investments | |||||||||
Investment in Hisun Pfizer Pharmaceuticals Company Limited (Hisun Pfizer) | |||||||||
On September 6, 2012, we and Zhejiang Hisun Pharmaceuticals Co., Ltd. (Hisun), a leading pharmaceutical company in China, formed a new company, Hisun Pfizer, 49% owned by Pfizer and 51% owned by Hisun, to develop, manufacture, market and sell pharmaceutical products, primarily branded generic products, predominately in China. In the first quarter of 2013, we and Hisun contributed certain assets to Hisun Pfizer. Our contributions constituted a business, as defined by U.S. GAAP, and in the first quarter of 2013, we recognized a pre-tax gain of approximately $490 million in Other deductions––net, reflecting the transfer of the business to Hisun Pfizer (including an allocation of goodwill from our former Emerging Markets reporting unit as part of the carrying amount of the business transferred). Since we hold a 49% interest in Hisun Pfizer, we had an indirect retained interest in the contributed assets; as such, 49% of the gain, or $240 million, represented the portion of the gain associated with that indirect retained interest. | |||||||||
Investment in ViiV Healthcare Limited | |||||||||
On January 21, 2014, the European Commission approved Tivicay (dolutegravir), a product for the treatment of HIV-1 infection, developed by ViiV Healthcare Limited (ViiV), an equity method investee. This approval, in accordance with the agreement between GlaxoSmithKline plc and Pfizer, triggered a reduction in our equity interest in ViiV from 12.6% to 11.7% and an increase in GlaxoSmithKline plc’s equity interest in ViiV from 77.4% to 78.3%, effective April 1, 2014. As a result, in the first quarter of 2014, we recognized a loss of approximately $36 million in Other deductions––net. |
Restructuring_Charges_and_Othe
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | 3 Months Ended | ||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | ' | ||||||||||||||||
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives | |||||||||||||||||
We can incur significant costs in connection with acquiring, integrating and restructuring businesses and in connection with our global cost-reduction/productivity initiatives. For example: | |||||||||||||||||
• | In connection with acquisition activity, we typically incur costs associated with executing the transactions, integrating the acquired operations (which may include expenditures for consulting and the integration of systems and processes), and restructuring the combined company (which may include charges related to employees, assets and activities that will not continue in the combined company); and | ||||||||||||||||
• | In connection with our cost-reduction/productivity initiatives, we typically incur costs and charges associated with site closings and other facility rationalization and optimization actions, workforce reductions and the expansion of shared services, including the development of global systems. | ||||||||||||||||
All of our businesses and functions may be impacted by these actions, including sales and marketing, manufacturing and research and development (R&D), as well as groups such as information technology, shared services and corporate operations. However, in 2014-2016, our primary activities are expected to be associated with our manufacturing plant network rationalization and optimization activities, and commercial property rationalization and consolidation. | |||||||||||||||||
At the end of 2013, we had substantially completed many of the initiatives launched in prior periods. In early 2014, we announced that we would be incurring costs in 2014-2016 related to new programs: our new global commercial structure reorganization and additional cost-reduction/productivity initiatives. | |||||||||||||||||
In 2014, we have the following initiatives underway: | |||||||||||||||||
• | Manufacturing plant network rationalization and optimization, where execution timelines are necessarily long. Our plant network strategy is expected to result in the exit of nine sites over the next several years. In connection with these activities, during 2014-2016, we expect to incur costs of approximately $450 million associated with prior acquisition activity and costs of approximately $1.5 billion associated with new non-acquisition-related cost-reduction initiatives. | ||||||||||||||||
• | New global commercial structure reorganization, which primarily includes the streamlining of certain functions, the realignment of regional locations and colleagues to support the businesses, as well as implementing the necessary system changes to support future reporting requirements. In connection with this reorganization, during 2014-2016, we expect to incur costs of approximately $350 million. | ||||||||||||||||
• | Other new cost-reduction/productivity initiatives, primarily related to commercial property rationalization and consolidation. In connection with these cost-reduction activities, during 2014-2016, we expect to incur costs of approximately $900 million. | ||||||||||||||||
The costs expected to be incurred during 2014-2016, of approximately $3.2 billion in total, include restructuring charges, integration costs, implementation costs and additional depreciation––asset restructuring. Of this amount, we expect that about a quarter of the charges will be non-cash. | |||||||||||||||||
Current-Period Key Activities | |||||||||||||||||
In the first quarter of 2014, we incurred approximately $164 million in cost-reduction and acquisition-related costs (excluding transaction costs) in connection with the aforementioned programs, primarily associated with our manufacturing and sales operations. | |||||||||||||||||
The following table provides the components of costs associated with acquisitions and cost-reduction/productivity initiatives: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Restructuring charges(a): | |||||||||||||||||
Employee terminations | $ | 30 | $ | (21 | ) | ||||||||||||
Asset impairments | 6 | 103 | |||||||||||||||
Exit costs | 4 | 13 | |||||||||||||||
Total restructuring charges | 40 | 95 | |||||||||||||||
Integration costs(b) | 18 | 36 | |||||||||||||||
Restructuring charges and certain acquisition-related costs | 58 | 131 | |||||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | |||||||||||||||||
Cost of sales | 74 | 33 | |||||||||||||||
Selling, informational and administrative expenses | — | 11 | |||||||||||||||
Research and development expenses | — | 91 | |||||||||||||||
Total additional depreciation––asset restructuring | 74 | 135 | |||||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | |||||||||||||||||
Cost of sales | 6 | 6 | |||||||||||||||
Selling, informational and administrative expenses | 15 | 31 | |||||||||||||||
Research and development expenses | 11 | 2 | |||||||||||||||
Total implementation costs | 32 | 39 | |||||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 164 | $ | 305 | |||||||||||||
(a) | In the three months ended March 30, 2014, Employee terminations represent the expected reduction of the workforce by approximately 200 employees, mainly in manufacturing and sales. | ||||||||||||||||
The restructuring charges in 2014 are associated with the following: | |||||||||||||||||
• | For the three months ended March 30, 2014, the Global Innovative Pharmaceutical segment (GIP) ($2 million), the Global Established Pharmaceutical segment (GEP) ($7 million), Worldwide Research and Development and Medical ($1 million), manufacturing operations ($26 million) and Corporate ($4 million). | ||||||||||||||||
The restructuring charges in 2013 are associated with the following: | |||||||||||||||||
• | For the three months ended March 31, 2013, total operating segments ($13 million), Worldwide Research and Development and Medical ($2 million), manufacturing operations ($3 million) and Corporate ($77 million). In 2014, we revised our operating segments and are unable to identify these prior-period restructuring charges to the new individual segments. | ||||||||||||||||
(b) | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | ||||||||||||||||
(c) | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||||||||||||||
(d) | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. | ||||||||||||||||
The following table provides the components of and changes in our restructuring accruals: | |||||||||||||||||
(MILLIONS OF DOLLARS) | Employee | Asset | Exit Costs | Accrual | |||||||||||||
Termination | Impairment | ||||||||||||||||
Costs | Charges | ||||||||||||||||
Balance, December 31, 2013(a) | $ | 1,685 | $ | — | $ | 94 | $ | 1,779 | |||||||||
Provision | 30 | 6 | 4 | 40 | |||||||||||||
Utilization and other(b) | (115 | ) | (6 | ) | (25 | ) | (146 | ) | |||||||||
Balance, March 30, 2014(c) | $ | 1,600 | $ | — | $ | 73 | $ | 1,673 | |||||||||
(a) | Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($767 million). | ||||||||||||||||
(b) | Includes adjustments for foreign currency translation. | ||||||||||||||||
(c) | Included in Other current liabilities ($968 million) and Other noncurrent liabilities ($705 million). |
Other_IncomeDeductions_Net
Other (Income)/Deductions - Net | 3 Months Ended | ||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||||||
Other (Income)/Deductions-Net | ' | ||||||||||||||||||||
Other Deductions—Net | |||||||||||||||||||||
The following table provides components of Other deductions––net: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Interest income(a) | $ | (92 | ) | $ | (95 | ) | |||||||||||||||
Interest expense(a) | 321 | 371 | |||||||||||||||||||
Net interest expense | 229 | 276 | |||||||||||||||||||
Royalty-related income(b) | (248 | ) | (63 | ) | |||||||||||||||||
Certain legal matters, net(c) | 694 | (83 | ) | ||||||||||||||||||
Gain associated with the transfer of certain product rights(d) | — | (490 | ) | ||||||||||||||||||
Net gains on asset disposals(e) | (181 | ) | (26 | ) | |||||||||||||||||
Certain asset impairments and related charges(f) | 115 | 398 | |||||||||||||||||||
Costs associated with the Zoetis IPO(g) | — | 18 | |||||||||||||||||||
Other, net | 14 | 115 | |||||||||||||||||||
Other deductions––net | $ | 623 | $ | 145 | |||||||||||||||||
(a) | Interest income decreased in the first three months of 2014 due to lower cash equivalents and investment balances and lower investment returns. Interest expense decreased in the first three months of 2014 primarily due to the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | ||||||||||||||||||||
(b) | Royalty-related income increased in 2014 due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period. | ||||||||||||||||||||
(c) | In the first quarter of 2014, includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter. In the first quarter of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. For additional information, see Note 12A. Commitments and Contingencies: Legal Proceedings. | ||||||||||||||||||||
(d) | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||
(e) | In the first quarter of 2014, primarily includes gains on sales of product rights (approximately $70 million) and gains on sales of investments in equity securities (approximately $95 million). | ||||||||||||||||||||
(f) | In the first quarter of 2014, includes an intangible asset impairment charge of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first quarter of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program. In the first quarter of 2013, includes an intangible asset impairment charge of $394 million, all of which relates to developed technology rights for use in the development of bone and cartilage. The intangible asset impairment charge for 2013 is associated with the Global Innovative Pharmaceutical segment and reflects, among other things, updated commercial forecasts. | ||||||||||||||||||||
(g) | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | ||||||||||||||||||||
The asset impairment charges included in Other deductions––net for the first three months of 2014 virtually all relate to identifiable intangible assets and are based on estimates of fair value. | |||||||||||||||||||||
The following table provides additional information about the intangible assets that were impaired during the first three months of 2014 in Other deductions––net: | |||||||||||||||||||||
Fair Value(a) | Three Months Ended March 30, 2014 | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Intangible assets––IPR&D(b) | $ | 79 | $ | — | $ | — | $ | 79 | $ | 114 | |||||||||||
Total | $ | 79 | $ | — | $ | — | $ | 79 | $ | 114 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects intangible assets written down to fair value in the first three months of 2014. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters
Tax Matters | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Tax Matters | ' | ||||||||
Tax Matters | |||||||||
A. Taxes on Income from Continuing Operations | |||||||||
Our effective tax rate for continuing operations was 20.4% for the first quarter of 2014, compared to 29.8% for the first quarter of 2013. The lower effective tax rate for the first quarter of 2014 in comparison with the same period in 2013 was primarily due to the favorable impact of the resolution in the first quarter of 2014 of certain tax positions, pertaining to prior years, primarily with various foreign tax authorities, and from the expiration of certain statutes of limitations, the non-recurrence of the unfavorable tax impact associated with the non-deductibility of the goodwill derecognized and the jurisdictional mix of the other intangible assets divested as part of the transfer of certain product rights to our 49%-owned equity-method investment, as well as the change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business, partially offset by the expiration of the U.S. research and development (R&D) tax credit on December 31, 2013. For additional information about the transfer of certain product rights, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | |||||||||
B. Tax Contingencies | |||||||||
We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the period of resolution. | |||||||||
The United States is one of our major tax jurisdictions, and we are regularly audited by the U.S. Internal Revenue Service (IRS): | |||||||||
• | With respect to Pfizer Inc., tax years 2009 and 2010 are currently under audit. Tax years 2011-2014 are open, but not under audit. All other tax years are closed. | ||||||||
In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2004-2014), Japan (2013-2014), Europe (2007-2014, primarily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany), Latin America (1998-2014, primarily reflecting Brazil and Mexico) and Puerto Rico (2009-2014). | |||||||||
C. Taxes on Items of Other Comprehensive Loss | |||||||||
The following table provides the components of the tax provision/(benefit) on Other comprehensive loss: | |||||||||
Three Months Ended | |||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments(a) | $ | (7 | ) | $ | 71 | ||||
Unrealized holding losses on derivative financial instruments | (17 | ) | (155 | ) | |||||
Reclassification adjustments for realized (gains)/losses | (1 | ) | 167 | ||||||
(18 | ) | 12 | |||||||
Unrealized holding gains on available-for-sale securities | 27 | 11 | |||||||
Reclassification adjustments for realized gains | (29 | ) | (25 | ) | |||||
(2 | ) | (14 | ) | ||||||
Benefit plans: actuarial gains, net | 1 | 6 | |||||||
Reclassification adjustments related to amortization | 16 | 54 | |||||||
Reclassification adjustments related to settlements, net | 8 | 20 | |||||||
Foreign currency translation adjustments and other | (12 | ) | 37 | ||||||
13 | 117 | ||||||||
Benefit plans: prior service costs and other | — | (1 | ) | ||||||
Reclassification adjustments related to amortization | (7 | ) | (6 | ) | |||||
Reclassification adjustments related to curtailments, net | (1 | ) | (3 | ) | |||||
Other | 5 | — | |||||||
(3 | ) | (10 | ) | ||||||
Tax provision/(benefit) on other comprehensive loss | $ | (17 | ) | $ | 176 | ||||
(a) | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Certain Changes in Total Equity | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
The following table provides the changes, net of tax, in Accumulated other comprehensive loss: | |||||||||||||||||||||||||
Net Unrealized Gains/(Losses) | Benefit Plans | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Foreign Currency Translation Adjustments | Derivative Financial Instruments | Available-For-Sale Securities | Actuarial Gains/(Losses) | Prior Service (Costs)/Credits and Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance, December 31, 2013 | $ | (590 | ) | $ | 79 | $ | 150 | $ | (3,223 | ) | $ | 313 | $ | (3,271 | ) | ||||||||||
Other comprehensive income/(loss)(a) | (128 | ) | (28 | ) | 11 | 46 | (20 | ) | (119 | ) | |||||||||||||||
Balance, March 30, 2014 | $ | (718 | ) | $ | 51 | $ | 161 | $ | (3,177 | ) | $ | 293 | $ | (3,390 | ) | ||||||||||
(a) | Amounts do not include foreign currency translation loss of $2 million attributable to noncontrolling interests for the first three months of 2014. | ||||||||||||||||||||||||
As of March 30, 2014, with respect to derivative financial instruments, we estimate that we will reclassify into income within the next 12 months approximately $77.5 million of unrealized pre-tax losses (which is expected to be offset by gains resulting from reclassification adjustments related to available-for-sale securities). |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||
A. Selected Financial Assets and Liabilities | |||||||||||||||||||||||||
The following table provides additional information about certain of our financial assets and liabilities: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Selected financial assets measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Trading securities(b) | $ | 103 | $ | 126 | |||||||||||||||||||||
Available-for-sale debt securities(c) | 35,693 | 34,899 | |||||||||||||||||||||||
Available-for-sale money market funds | 977 | 945 | |||||||||||||||||||||||
Available-for-sale equity securities, excluding money market funds(c) | 462 | 356 | |||||||||||||||||||||||
Derivative financial instruments in receivable positions(d): | |||||||||||||||||||||||||
Interest rate swaps | 438 | 468 | |||||||||||||||||||||||
Foreign currency swaps | 953 | 871 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 49 | 172 | |||||||||||||||||||||||
38,675 | 37,837 | ||||||||||||||||||||||||
Other selected financial assets | |||||||||||||||||||||||||
Held-to-maturity debt securities, carried at amortized cost(c), (e) | 8,501 | 9,139 | |||||||||||||||||||||||
Private equity securities, carried at equity-method or at cost(e), (f) | 2,276 | 2,270 | |||||||||||||||||||||||
10,777 | 11,409 | ||||||||||||||||||||||||
Total selected financial assets | $ | 49,452 | $ | 49,246 | |||||||||||||||||||||
Financial liabilities measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Derivative financial instruments in a liability position(g): | |||||||||||||||||||||||||
Interest rate swaps | $ | 187 | $ | 301 | |||||||||||||||||||||
Foreign currency swaps | 116 | 110 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 184 | 219 | |||||||||||||||||||||||
487 | 630 | ||||||||||||||||||||||||
Other financial liabilities(h) | |||||||||||||||||||||||||
Short-term borrowings, carried at historical proceeds, as adjusted(e) | 9,319 | 6,027 | |||||||||||||||||||||||
Long-term debt, carried at historical proceeds, as adjusted(i), (j) | 27,649 | 30,462 | |||||||||||||||||||||||
36,968 | 36,489 | ||||||||||||||||||||||||
Total selected financial liabilities | $ | 37,455 | $ | 37,119 | |||||||||||||||||||||
(a) | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 inputs. | ||||||||||||||||||||||||
(b) | Trading securities are held in trust for legacy business acquisition severance benefits. | ||||||||||||||||||||||||
(c) | Gross unrealized gains and losses are not significant. | ||||||||||||||||||||||||
(d) | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $26 million and foreign currency forward-exchange contracts with fair values of $30 million as of March 30, 2014; and, interest rate swaps with fair values of $38 million, foreign currency swaps with fair values of $30 million and foreign currency forward-exchange contracts with fair values of $66 million as of December 31, 2013. | ||||||||||||||||||||||||
(e) | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 30, 2014 or December 31, 2013. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs. | ||||||||||||||||||||||||
(f) | Our private equity securities represent investments in the life sciences sector. | ||||||||||||||||||||||||
(g) | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $78 million and foreign currency forward-exchange contracts with fair values of $55 million as of March 30, 2014; and, foreign currency swaps with fair values of $76 million and foreign currency forward-exchange contracts with fair values of $77 million as of December 31, 2013. | ||||||||||||||||||||||||
(h) | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | ||||||||||||||||||||||||
(i) | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | ||||||||||||||||||||||||
(j) | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance. | ||||||||||||||||||||||||
The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,171 | $ | 1,104 | |||||||||||||||||||||
Short-term investments | 31,019 | 30,225 | |||||||||||||||||||||||
Long-term investments | 15,822 | 16,406 | |||||||||||||||||||||||
Other current assets(a) | 132 | 286 | |||||||||||||||||||||||
Other noncurrent assets(b) | 1,308 | 1,225 | |||||||||||||||||||||||
$ | 49,452 | $ | 49,246 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Short-term borrowings, including current portion of long-term debt | $ | 9,319 | $ | 6,027 | |||||||||||||||||||||
Other current liabilities(c) | 275 | 303 | |||||||||||||||||||||||
Long-term debt | 27,649 | 30,462 | |||||||||||||||||||||||
Other noncurrent liabilities(d) | 212 | 327 | |||||||||||||||||||||||
$ | 37,455 | 37,119 | |||||||||||||||||||||||
(a) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($68 million), foreign currency swaps ($15 million) and foreign currency forward-exchange contracts ($49 million) and, as of December 31, 2013, include interest rate swaps ($90 million), foreign currency swaps ($24 million) and foreign currency forward-exchange contracts ($172 million). | ||||||||||||||||||||||||
(b) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($370 million) and foreign currency swaps ($938 million) and, as of December 31, 2013, include interest rate swaps ($378 million) and foreign currency swaps ($847 million). | ||||||||||||||||||||||||
(c) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($1 million), foreign currency swaps ($90 million) and foreign currency forward-exchange contracts ($184 million) and, as of December 31, 2013, include foreign currency swaps ($84 million) and foreign currency forward-exchange contracts ($219 million). | ||||||||||||||||||||||||
(d) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($186 million) and foreign currency swaps ($26 million) and, as of December 31, 2013, include interest rate swaps ($301 million) and foreign currency swaps ($26 million). | ||||||||||||||||||||||||
There were no significant impairments of financial assets recognized in any period presented. | |||||||||||||||||||||||||
B. Investments in Debt Securities | |||||||||||||||||||||||||
The following table provides the contractual maturities of the available-for-sale and held-to-maturity debt securities: | |||||||||||||||||||||||||
Years | 30-Mar-14 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Within 1 | Over 1 | Over 5 | Over 10 | Total | ||||||||||||||||||||
to 5 | to 10 | ||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | $ | 11,530 | $ | 2,141 | $ | — | $ | — | $ | 13,671 | |||||||||||||||
Corporate debt(b) | 2,701 | 4,696 | 1,260 | 290 | 8,947 | ||||||||||||||||||||
U.S. government debt | 3,483 | 166 | — | — | 3,649 | ||||||||||||||||||||
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities | — | 2,576 | 10 | 299 | 2,885 | ||||||||||||||||||||
Supranational debt(a) | 990 | 940 | — | — | 1,930 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt(a) | 1,568 | 356 | — | — | 1,924 | ||||||||||||||||||||
Reverse repurchase agreements(c) | 1,433 | — | — | — | 1,433 | ||||||||||||||||||||
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities | 1,076 | 139 | — | 39 | 1,254 | ||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | 5,336 | — | — | — | 5,336 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt, certificates of deposit and other(a) | 2,995 | 169 | 1 | — | 3,165 | ||||||||||||||||||||
Total debt securities | $ | 31,112 | $ | 11,183 | $ | 1,271 | $ | 628 | $ | 44,194 | |||||||||||||||
(a) | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | ||||||||||||||||||||||||
(b) | Largely issued by above-investment-grade institutions in the financial services sector. | ||||||||||||||||||||||||
(c) | Involving U.S. securities. | ||||||||||||||||||||||||
C. Short-Term Borrowings | |||||||||||||||||||||||||
Short-term borrowings include amounts for commercial paper of $3.7 billion and $3.0 billion as of March 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
D. Derivative Financial Instruments and Hedging Activities | |||||||||||||||||||||||||
Foreign Exchange Risk | |||||||||||||||||||||||||
As of March 30, 2014, the aggregate notional amount of foreign exchange derivative financial instruments hedging or offsetting foreign currency exposures is $38.0 billion. The derivative financial instruments primarily hedge or offset exposures in the euro, Japanese yen, U.K. pound and Swiss franc. The maximum length of time over which we are hedging future foreign exchange cash flow relates to our $2.5 billion U.K. pound debt maturing in 2038. | |||||||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||||||
As of March 30, 2014, the aggregate notional amount of interest rate derivative financial instruments is $14.1 billion. The derivative financial instruments primarily hedge U.S. dollar and euro fixed-rate debt. | |||||||||||||||||||||||||
The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: | |||||||||||||||||||||||||
Amount of | Amount of | Amount of | |||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) | |||||||||||||||||||||||
Recognized in OID(a), (b), (c) | Recognized in OCI | Reclassified from | |||||||||||||||||||||||
(Effective Portion)(a), (d) | OCI into OID | ||||||||||||||||||||||||
(Effective Portion)(a), (d) | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | (15 | ) | $ | (449 | ) | $ | 9 | $ | (382 | ) | ||||||||||
Foreign currency forward-exchange contracts | — | — | (43 | ) | 53 | (21 | ) | (144 | ) | ||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | — | (3 | ) | (8 | ) | 123 | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | (12 | ) | 149 | — | — | — | — | ||||||||||||||||||
Foreign currency swaps | (3 | ) | (4 | ) | — | — | — | — | |||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | (14 | ) | 63 | — | — | ||||||||||||||||||
All other net | (3 | ) | — | — | — | — | — | ||||||||||||||||||
$ | (18 | ) | $ | 142 | $ | (80 | ) | $ | (210 | ) | $ | (12 | ) | $ | (526 | ) | |||||||||
(a) | OID =ther (income)/deductions—net, included in Other deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income. | ||||||||||||||||||||||||
(b) | Also includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges, as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. | ||||||||||||||||||||||||
(c) | There was no significant ineffectiveness for any period presented. | ||||||||||||||||||||||||
(d) | For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive loss––Unrealized holding gains/(losses) on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive loss––Foreign currency translation adjustments. | ||||||||||||||||||||||||
For information about the fair value of our derivative financial instruments, and the impact on our condensed consolidated balance sheets, see Note 7A. Financial Instruments: Selected Financial Assets and Liabilities above. Certain of our derivative instruments are covered by associated credit-support agreements that have credit-risk-related contingent features designed to reduce our counterparties’ exposure to our risk of defaulting on amounts owed. As of March 30, 2014, the aggregate fair value of these derivative instruments that are in a net liability position is $192 million, for which we have posted collateral of $225 million in the normal course of business. These features include the requirement to pay additional collateral in the event of a downgrade in our debt ratings. At March 30, 2014, if there had been a downgrade to below an A rating by Standard & Poor's (S&P) or the equivalent rating by Moody’s Investors Service, we would not have been required to post any additional collateral to our counterparties. The collateral advanced receivables are reported in Short-term investments. | |||||||||||||||||||||||||
E. Credit Risk | |||||||||||||||||||||||||
On an ongoing basis, we review the creditworthiness of counterparties to our foreign exchange and interest rate agreements and do not expect to incur a significant loss from failure of any counterparties to perform under the agreements. There are no significant concentrations of credit risk related to our financial instruments with any individual counterparty. As of March 30, 2014, we had $2.2 billion due from a well-diversified, highly rated group (S&P ratings of mostly A+ or better) of bank counterparties around the world. For details about our investments, see Note 7B. Financial Instruments: Investments in Debt Securities above. | |||||||||||||||||||||||||
In general, there is no requirement for collateral from customers. However, derivative financial instruments are executed under master netting agreements with financial institutions and these agreements contain provisions that provide for collateral payments, depending on levels of exposure, our credit rating and the credit rating of the counterparty. For information about our financial instruments (excluding the impact of collateral), see Note 7A. Financial Instruments: Selected Financial Assets and Liabilities and Note 7B. Financial Instruments: Investments in Debt Securities above. For information about the collateral posted on our derivative instruments, see Note 7D. Financial Instruments: Derivative Financial Instruments and Hedging Activities above. As of March 30, 2014, we received cash collateral of $1.2 billion from various counterparties. The collateral primarily supports the approximate fair value of our derivative contracts. With respect to the collateral received, which is included in Cash and cash equivalents, the obligations are reported in Short-term borrowings, including current portion of long-term debt. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
The following table provides the components of Inventories: | |||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 2,526 | $ | 2,216 | |||||
Work-in-process | 3,013 | 3,445 | |||||||
Raw materials and supplies | 527 | 505 | |||||||
Inventories | $ | 6,066 | $ | 6,166 | |||||
Noncurrent inventories not included above(a) | $ | 468 | $ | 463 | |||||
(a) | Included in Other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
A. Goodwill | |||||||||||||||||||||||||
Our businesses were previously managed through four operating segments (Primary Care, Specialty Care and Oncology, Established Products and Emerging Markets and Consumer Healthcare) and are now managed through three different operating segments: the Global Innovative Pharmaceutical segment (GIP); the Global Vaccines, Oncology and Consumer Healthcare segment (VOC); and the Global Established Pharmaceutical segment (GEP). For additional information, see Note 13. Segment, Geographic and Other Revenue Information. | |||||||||||||||||||||||||
As a result of this change, our goodwill is required to be reallocated to the new reporting units. The allocation of goodwill is a complex process that requires, among other things, that we determine the fair value of each reporting unit. Therefore, we have not yet completed the allocation, but we expect that it will be completed in the current year. | |||||||||||||||||||||||||
The following table provides the components of and changes in the carrying amount of Goodwill: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | GIP | VOC | GEP | To be Allocated(a) | Total | ||||||||||||||||||||
Balance, December 31, 2013 | $ | $ | $ | $ | 42,519 | $ | 42,519 | ||||||||||||||||||
Additions | — | — | |||||||||||||||||||||||
Other(b) | (52 | ) | (52 | ) | |||||||||||||||||||||
Balance, March 30, 2014 | $ | $ | $ | $ | 42,467 | $ | 42,467 | ||||||||||||||||||
(a) | The amount to be allocated includes the goodwill associated with our former biopharmaceutical operating segments (see above), for which the allocation to our new reporting units, and, as a result, to the new operating segments, is pending. | ||||||||||||||||||||||||
(b) | Primarily reflects the impact of foreign exchange. | ||||||||||||||||||||||||
B. Other Intangible Assets | |||||||||||||||||||||||||
Balance Sheet Information | |||||||||||||||||||||||||
The following table provides the components of Identifiable intangible assets: | |||||||||||||||||||||||||
March 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Gross | Accumulated | Identifiable | Gross | Accumulated | Identifiable | |||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Amount | Assets, less | Amount | Assets, less | ||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||
Developed technology rights | $ | 72,064 | $ | (42,676 | ) | $ | 29,388 | $ | 72,038 | $ | (41,541 | ) | $ | 30,497 | |||||||||||
Brands | 1,742 | (793 | ) | 949 | 1,743 | (773 | ) | 970 | |||||||||||||||||
Licensing agreements and other | 903 | (810 | ) | 93 | 896 | (805 | ) | 91 | |||||||||||||||||
74,709 | (44,279 | ) | 30,430 | 74,677 | (43,119 | ) | 31,558 | ||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Brands and other | 7,363 | 7,363 | 7,384 | 7,384 | |||||||||||||||||||||
In-process research and development | 329 | 329 | 443 | 443 | |||||||||||||||||||||
7,692 | 7,692 | 7,827 | 7,827 | ||||||||||||||||||||||
Identifiable intangible assets(a) | $ | 82,401 | $ | (44,279 | ) | $ | 38,122 | $ | 82,504 | $ | (43,119 | ) | $ | 39,385 | |||||||||||
(a) | The decrease is primarily related to amortization and asset impairment charges. For information about impairments of intangible assets, see Note 4. Other Deductions—Net. | ||||||||||||||||||||||||
Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: | |||||||||||||||||||||||||
March 30, 2014 | |||||||||||||||||||||||||
GIP | VOC | GEP | WRD(a) | ||||||||||||||||||||||
Developed technology rights | 34 | % | 32 | % | 34 | % | — | % | |||||||||||||||||
Brands, finite-lived | — | % | 75 | % | 25 | % | — | % | |||||||||||||||||
Brands, indefinite-lived | — | % | 69 | % | 31 | % | — | % | |||||||||||||||||
In-process research and development | 9 | % | 58 | % | 9 | % | 24 | % | |||||||||||||||||
(a) | Worldwide Research and Development. | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate. Total amortization expense for finite-lived intangible assets was $1.1 billion for the first quarter of 2014 and $1.3 billion for the first quarter of 2013. | |||||||||||||||||||||||||
Impairment Charges | |||||||||||||||||||||||||
For information about impairments of intangible assets, see Note 4. Other Deductions—Net. | |||||||||||||||||||||||||
For IPR&D assets, the risk of failure is significant and there can be no certainty that these assets ultimately will yield a successful product. The nature of the biopharmaceutical business is high-risk and, as such, we expect that many of these IPR&D assets will become impaired and be written off at some time in the future. |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefit Plans | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit cost (including, in 2013, costs reported as part of discontinued operations): | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
U.S. | U.S. | International(c) | Postretirement | ||||||||||||||||||||||||||||||
Qualified(a) | Supplemental | Plans | |||||||||||||||||||||||||||||||
(Non-Qualified)(b) | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 64 | $ | 77 | $ | 5 | $ | 7 | $ | 52 | $ | 56 | $ | 14 | $ | 16 | |||||||||||||||||
Interest cost | 175 | 168 | 15 | 14 | 100 | 97 | 42 | 42 | |||||||||||||||||||||||||
Expected return on plan assets | (263 | ) | (253 | ) | — | — | (114 | ) | (104 | ) | (16 | ) | (14 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 16 | 90 | 7 | 13 | 25 | 37 | 1 | 11 | |||||||||||||||||||||||||
Prior service credits | (2 | ) | (2 | ) | — | (1 | ) | (2 | ) | (2 | ) | (14 | ) | (11 | ) | ||||||||||||||||||
Curtailments | 2 | (1 | ) | — | — | (1 | ) | (1 | ) | (3 | ) | (7 | ) | ||||||||||||||||||||
Settlements | 9 | 30 | 11 | 22 | 1 | 4 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | — | — | — | 2 | — | — | — | |||||||||||||||||||||||||
$ | 1 | $ | 109 | $ | 38 | $ | 55 | $ | 63 | $ | 87 | $ | 24 | $ | 37 | ||||||||||||||||||
(a) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. qualified pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation (which reduced the amount of deferred actuarial losses), lower service cost resulting from cost-reduction initiatives, lower settlement activity and greater expected return on plan assets resulting from an increased plan asset base, partially offset by higher interest costs resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | ||||||||||||||||||||||||||||||||
(b) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. supplemental (non-qualified) pension plans was primarily driven by lower settlement activity and the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | ||||||||||||||||||||||||||||||||
(c) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our international pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from increases, in 2013, in the discount rates used to determine the benefit obligations and greater expected return on plan assets resulting from an increased plan asset base. | ||||||||||||||||||||||||||||||||
As of and for the three months ended March 30, 2014, we contributed and expect to contribute from our general assets as follows: | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | U.S. Qualified | U.S. Supplemental (Non-Qualified) | International | Postretirement Plans | |||||||||||||||||||||||||||||
Contributions from our general assets for the three months ended March 30, 2014 | $ | — | $ | 83 | $ | 87 | $ | 55 | |||||||||||||||||||||||||
Expected contributions from our general assets during 2014(a) | $ | 6 | $ | 176 | $ | 310 | $ | 239 | |||||||||||||||||||||||||
(a) | Contributions expected to be made for 2014 are inclusive of amounts contributed during the three months ended March 30, 2014. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings_Per_Common_Share_Attr
Earnings Per Common Share Attributable to Common Shareholders | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Common Share Attributable to Common Shareholders | ' | ||||||||
Earnings Per Common Share Attributable to Common Shareholders | |||||||||
The following table provides the detailed calculation of Earnings per common share (EPS): | |||||||||
Three Months Ended | |||||||||
(IN MILLIONS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
EPS Numerator––Basic | |||||||||
Income from continuing operations | $ | 2,265 | $ | 2,616 | |||||
Less: Net income attributable to noncontrolling interests | 9 | 9 | |||||||
Income from continuing operations attributable to Pfizer Inc. | 2,256 | 2,607 | |||||||
Less: Preferred stock dividends––net of tax | — | — | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,256 | 2,607 | |||||||
Discontinued operations––net of tax | 73 | 149 | |||||||
Less: Discontinued operations––net of tax, attributable to noncontrolling interests | — | 6 | |||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 73 | 143 | |||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 2,329 | $ | 2,750 | |||||
EPS Numerator––Diluted | |||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,256 | $ | 2,607 | |||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 73 | 143 | |||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,329 | $ | 2,750 | |||||
EPS Denominator | |||||||||
Weighted-average number of common shares outstanding––Basic | 6,389 | 7,187 | |||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 87 | 82 | |||||||
Weighted-average number of common shares outstanding––Diluted | 6,476 | 7,269 | |||||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | 97 | |||||||
(a) | These common stock equivalents were outstanding for the three months ended March 30, 2014 and March 31, 2013, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
Commitments and Contingencies | ||
We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business. For a discussion of our tax contingencies, see Note 5B. Tax Matters: Tax Contingencies. | ||
A. Legal Proceedings | ||
Our non-tax contingencies include, among others, the following: | ||
• | Patent litigation, which typically involves challenges to the coverage and/or validity of our patents on various products, processes or dosage forms. We are the plaintiff in the vast majority of these actions. An adverse outcome in actions in which we are the plaintiff could result in a loss of patent protection for the drug at issue, a significant loss of revenues from that drug and impairments of any associated assets. | |
• | Product liability and other product-related litigation, which can include personal injury, consumer, off-label promotion, securities-law, antitrust and breach of contract claims, among others, often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters. | |
• | Commercial and other matters, which can include merger-related and product-pricing claims and environmental claims and proceedings, can involve complexities that will vary from matter to matter. | |
• | Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other countries. | |
Certain of these contingencies could result in losses, including damages, fines and/or civil penalties, and/or criminal charges, which could be substantial. | ||
We believe that our claims and defenses in these matters are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and/or our cash flows in the period in which the amounts are paid. | ||
We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies heavily on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. | ||
Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. | ||
The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors in order to assess materiality, such as, among other things, the amount of damages and the nature of any other relief sought in the proceeding, if such damages and other relief are specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be a class action and our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information about the Company that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters, we consider, among other things, the financial significance of the product protected by the patent. As a result of considering qualitative factors in our determination of principal matters, there are some matters discussed below with respect to which management believes that the likelihood of possible loss in excess of amounts accrued is remote. | ||
A1. Legal Proceedings––Patent Litigation | ||
Like other pharmaceutical companies, we are involved in numerous suits relating to our patents, including but not limited to those discussed below. Most of the suits involve claims by generic drug manufacturers that patents covering our products, processes or dosage forms are invalid and/or do not cover the product of the generic drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed claiming that our assertions of, or attempts to enforce, our patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. patents on a number of our products that are discussed below, we note that the patent rights to certain of our products are being challenged in various other countries. | ||
Actions In Which We Are The Plaintiff | ||
Viagra (sildenafil) | ||
In October 2010, we filed a patent-infringement action with respect to Viagra in the U.S. District Court for the Southern District of New York against Apotex Inc. and Apotex Corp., Mylan Pharmaceuticals Inc. and Mylan Inc., Actavis, Inc. and Amneal Pharmaceuticals LLC. These generic drug manufacturers have filed abbreviated new drug applications with the FDA seeking approval to market their generic versions of Viagra. They assert the invalidity and non-infringement of the Viagra use patent, which expires in 2020 (including the six-month pediatric exclusivity period resulting from the Company’s conduct of clinical studies to evaluate Revatio in the treatment of pediatric patients with pulmonary arterial hypertension; Viagra and Revatio have the same active ingredient, sildenafil). In April 2014, we settled our claim against Amneal Pharmaceuticals LLC on terms that are not material to us. | ||
In May and June 2011, respectively, Watson Laboratories Inc. (Watson) and Hetero Labs Limited (Hetero) notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market their generic versions of Viagra. Each asserts the invalidity and non-infringement of the Viagra use patent. In June and July 2011, respectively, we filed actions against Watson and Hetero in the U.S. District Court for the Southern District of New York asserting the validity and infringement of the Viagra use patent. | ||
In February 2014, Torrent Pharmaceuticals Ltd. (Torrent) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market its generic version of Viagra. Torrent asserts the invalidity and non-infringement of the Viagra use patent. In March 2014, we filed actions against Torrent in the U.S. District Courts for the Southern District of New York and the District of New Jersey asserting the validity and infringement of the Viagra use patent. | ||
Sutent (sunitinib malate) | ||
In May 2010, Mylan Pharmaceuticals Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Sutent and challenging on various grounds the Sutent basic patent, which expires in 2021, and two other patents, which expire in 2020 and 2021. In June 2010, we filed suit against Mylan Pharmaceuticals Inc. in the U.S. District Court for the District of Delaware asserting the infringement of those three patents. | ||
Lyrica (pregabalin) | ||
Beginning in March 2009, several generic drug manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Lyrica capsules and, in the case of one generic drug manufacturer, Lyrica oral solution. Each of the generic drug manufacturers is challenging one or more of three patents for Lyrica: the basic patent, which expires in 2018, and two other patents, one of which expired in October 2013 and the other of which expires in 2018. Each of the generic drug manufacturers asserts the invalidity and/or the non-infringement of the patents subject to challenge. Beginning in April 2009, we filed actions against these generic drug manufacturers in the U.S. District Court for the District of Delaware asserting the infringement and validity of our patents for Lyrica. All of these cases were consolidated in the District of Delaware. In July 2012, the court held that all three patents are valid and infringed. In August 2012, the generic drug manufacturers appealed the decision to the U.S. Court of Appeals for the Federal Circuit. In February 2014, the Federal Circuit affirmed the decision of the District Court with respect to the validity and enforcement of one claim of the basic patent and determined, on the ground of mootness, that it did not have to render a decision on any other issues raised on appeal, including with respect to the other patent that expires in 2018. As a result, the generic drug manufacturers cannot obtain FDA approval for their generic versions of Lyrica or market those products in the U.S. prior to the expiration of the basic patent in 2018, subject to the possible filing by any of the generic drug manufacturers of a petition for certiorari requesting a review by the U.S. Supreme Court. | ||
Apotex Inc. notified us, in May and June 2011, respectively, that it had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Lyrica oral solution and Lyrica capsules. Apotex Inc. asserts the invalidity and non-infringement of the basic patent, as well as the seizure patent that expired in October 2013. In July 2011, we filed an action against Apotex Inc. in the U.S. District Court for the District of Delaware asserting the validity and infringement of the challenged patents in connection with both of the abbreviated new drug applications. | ||
In November 2010, Novel Laboratories, Inc. (Novel) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica oral solution and asserting the invalidity and/or non-infringement of our three patents for Lyrica referred to above in the first paragraph of this section. In January 2011, we filed an action against Novel in the U.S. District Court for the District of Delaware asserting the validity and infringement of all three patents. | ||
In October 2011, Alembic Pharmaceuticals Limited (Alembic) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica capsules and asserting the invalidity of the basic patent. In addition, in December 2012, Wockhardt Limited (Wockhardt) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Lyrica oral solution and asserting the invalidity and non-infringement of the basic patent. In December 2011 and January 2013, we filed actions against Alembic and Wockhardt, respectively, in the U.S. District Court for the District of Delaware asserting the validity and infringement of the basic patent. | ||
Each of Novel, Alembic and Wockhardt has agreed to a stay of the respective actions described above and to be bound by any final judgment of infringement and validity of the patents at issue in the consolidated action discussed above in the first paragraph of this section. | ||
EpiPen | ||
King Pharmaceuticals, Inc. (King), which we acquired in 2011 and is a wholly owned subsidiary, brought a patent-infringement action against Sandoz, Inc., a division of Novartis AG (Sandoz), in the U.S. District Court for the District of New Jersey in July 2010 as the result of its abbreviated new drug application with the FDA seeking approval to market an epinephrine injectable product. Sandoz is challenging patents, which expire in 2025, covering the next-generation autoinjector for use with epinephrine that is sold under the EpiPen brand name. | ||
Embeda (morphine sulfate/naltrexone hydrochloride extended-release capsules) | ||
In August 2011, Watson Laboratories Inc. - Florida (Watson Florida) notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Embeda extended-release capsules. Watson Florida asserts the invalidity and non-infringement of three formulation patents that expire in 2027. In October 2011, we filed an action against Watson Florida in the U.S. District Court for the District of Delaware asserting the infringement of, and defending against the allegations of the invalidity of, the three formulation patents. | ||
Pristiq (desvenlafaxine) | ||
Beginning in May 2012, several generic drug manufacturers notified us that they had filed abbreviated new drug applications with the FDA seeking approval to market generic versions of Pristiq. Each of the generic drug manufacturers asserts the invalidity, unenforceability and/or non-infringement of two patents for Pristiq that expire in 2022 and 2027. Beginning in June 2012, we filed actions against these generic drug manufacturers in the U.S. District Court for the District of Delaware asserting the validity, enforceability and infringement of those patents. All of these actions have been consolidated in the District of Delaware. | ||
Celebrex (celecoxib) | ||
In March 2013, the U.S. Patent and Trademark Office granted us a reissue patent covering methods of treating osteoarthritis and other approved conditions with celecoxib, the active ingredient in Celebrex. The reissue patent, including the six-month pediatric exclusivity period, expires in December 2015. On the date that the reissue patent was granted, we filed suit in the U.S. District Court for the Eastern District of Virginia, asserting the infringement of the reissue patent, against Teva Pharmaceuticals USA, Inc. (Teva USA), Mylan Pharmaceuticals Inc., Watson, Lupin Pharmaceuticals USA, Inc., Apotex Corp. and Apotex Inc. Each of those generic drug companies had previously filed an abbreviated new drug application with the FDA seeking approval to market a generic version of celecoxib beginning in May 2014, upon the expiration of the basic patent (including the six-month pediatric exclusivity period) for celecoxib. In March 2014, the court granted the defendants’ motion for summary judgment, invalidating the reissue patent. In April 2014, we entered into settlement agreements with two of the defendants, Teva USA and Watson, pursuant to which we granted licenses to the reissue patent permitting Teva USA and Watson to launch their generic versions of celecoxib in the U.S. beginning in December 2014. We will appeal the District Court’s decision to the U.S. Court of Appeals for the Federal Circuit. | ||
Toviaz (fesoterodine) | ||
We have an exclusive, worldwide license to market Toviaz from UCB Pharma GmbH, which owns the patents relating to Toviaz. | ||
Beginning in May 2013, several generic 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 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 our patents for Toviaz: three composition-of-matter patents and a method-of-use patent that expire in 2019, and a patent covering salts of fesoterodine that expires in 2022. | ||
Tygacil (tigecycline) | ||
In September 2013, Apotex Inc. notified us that it had filed an abbreviated new drug application with the FDA seeking approval to market a generic version of Tygacil. Apotex Inc. asserts the non-infringement of a polymorph patent for Tygacil that expires in 2030, but has not challenged the basic patent, which expires in 2016. In September 2013, we filed suit against Apotex Inc. in the U.S. District Court for the District of Delaware asserting the infringement of the polymorph patent. | ||
Actions In Which We Are The Defendant | ||
Lipitor (atorvastatin) | ||
In an action initially brought against us by a generic drug company, the Beijing High Court upheld the validity of our patent in China covering the crystalline form of atorvastatin in Lipitor. The crystalline patent expires in July 2016 and is the only patent covering Lipitor in China. In January 2014, the China Supreme People’s Court (SPC) notified us that it will conduct a retrial regarding certain issues related to the validity of the crystalline patent. If there were an adverse decision by the SPC, we would expect additional generic competition for Lipitor in China, and the price for Lipitor in China may be subject to a government-imposed price reduction larger than might otherwise occur. | ||
Effexor XR (venlafaxine HCI) | ||
In 2006, Wyeth and Wyeth Canada Limited (the Wyeth companies) filed an action in the Federal Court in Canada against Ratiopharm Inc. (Ratiopharm) seeking to prevent Ratiopharm from obtaining approval in Canada for its generic version of Effexor XR prior to the expiration of one the Wyeth companies’ patents. As a result of that action, Ratiopharm was enjoined from obtaining regulatory approval for its generic product. However, in August 2007, the Federal Court of Appeal in Canada ruled that the patent at issue could not be asserted against Ratiopharm under the applicable Canadian regulations governing approvals, and it dismissed the Wyeth companies’ action. | ||
Following the dismissal, in 2007, Ratiopharm filed an action in the Federal Court in Canada seeking damages from the Wyeth companies for preventing it from marketing its generic version of Effexor XR in Canada from January 2006 through August 2007. The Federal Court dismissed Ratiopharm’s action in 2011, but the Federal Court of Appeal reinstated it in 2012. In 2011 and 2012, Pfizer Inc. made payments to Teva Canada Limited, which had acquired Ratiopharm, totaling Canadian dollars 52.5 million in partial settlement of this action. | ||
The trial in this action was held in January 2014, and the court issued various findings in March 2014. A judgment has not yet been rendered. However, based on the court’s March 2014 findings, we expect that Teva Canada Limited will be awarded damages of approximately Canadian dollars 120 million, consisting of compensatory damages, pre-judgment interest and legal costs, which, by virtue of the Canadian dollars 52.5 million previously paid to Teva Canada Limited, is expected to result in a net liability of approximately Canadian dollars 67.5 million. Pfizer Canada Inc., as successor to the Wyeth companies, will appeal the expected judgment after it has been issued. As of March 30, 2014, 1 Canadian dollar was equivalent to approximately 0.9 U.S. dollars. | ||
A2. Legal Proceedings––Product Litigation | ||
Like other pharmaceutical companies, we are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. | ||
Asbestos | ||
Between 1967 and 1982, Warner-Lambert owned American Optical Corporation, which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. As of March 30, 2014, approximately 64,000 claims naming American Optical and numerous other defendants were pending in various federal and state courts seeking damages for alleged personal injury from exposure to asbestos and other allegedly hazardous materials. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means to resolve, these claims. | ||
Numerous lawsuits are pending against Pfizer in various federal and state courts seeking damages for alleged personal injury from exposure to products containing asbestos and other allegedly hazardous materials sold by Gibsonburg Lime Products Company (Gibsonburg). Gibsonburg was acquired by Pfizer in the 1960s and sold products containing small amounts of asbestos until the early 1970s. | ||
There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries. | ||
Celebrex and Bextra | ||
Beginning in late 2004, several purported class actions were filed in federal and state courts alleging that Pfizer and certain current and former officers of Pfizer violated federal securities laws by misrepresenting the safety of Celebrex and Bextra. In June 2005, the federal actions were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Pfizer Inc. Securities, Derivative and "ERISA" Litigation MDL-1688) in the U.S. District Court for the Southern District of New York. In March 2012, the court in the Multi-District Litigation certified a class consisting of all persons who purchased or acquired Pfizer stock between October 31, 2000 and October 19, 2005. | ||
Various Drugs: Off-Label Promotion Action | ||
In May 2010, a purported class action was filed in the U.S. District Court for the Southern District of New York against Pfizer and several of our current and former officers. The complaint alleges that the defendants violated federal securities laws by making or causing Pfizer to make false statements, and by failing to disclose or causing Pfizer to fail to disclose material information, concerning the alleged off-label promotion of certain pharmaceutical products, alleged payments to physicians to promote the sale of those products and government investigations related thereto. Plaintiffs seek damages in an unspecified amount. In March 2012, the court certified a class consisting of all persons who purchased Pfizer common stock in the U.S. or on U.S. stock exchanges between January 19, 2006 and January 23, 2009 and were damaged as a result of the decline in the price of Pfizer common stock allegedly attributable to the claimed violations. | ||
Various Drugs: Foreign Corrupt Practices Act Compliance | ||
In February 2013, a shareholder derivative action was filed in the Supreme Court of the State of New York, County of New York, against certain current and former officers and directors of Pfizer. Pfizer is named as a nominal defendant. The complaint alleges that the individual defendants breached their fiduciary duties to the Company as the result of, among other things, inadequate oversight of compliance by Pfizer subsidiaries in various countries outside the U.S. with the U.S. Foreign Corrupt Practices Act. The plaintiff seeks damages in unspecified amounts and other unspecified relief on behalf of Pfizer. | ||
Effexor | ||
• | Personal Injury Actions | |
A number of individual lawsuits and multi-plaintiff lawsuits have been filed against us and/or our subsidiaries in various federal and state courts alleging personal injury as a result of the purported ingestion of Effexor. Among other types of actions, the Effexor personal injury litigation includes actions alleging a variety of birth defects as a result of the purported ingestion of Effexor by women during pregnancy. Plaintiffs in these birth-defect actions seek compensatory and punitive damages. In August 2013, the federal birth-defect cases were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Effexor (Venlafaxine Hydrochloride) Products Liability Litigation MDL-2458) in the U.S. District Court for the Eastern District of Pennsylvania. | ||
• | Antitrust Actions | |
Beginning in May 2011, actions, including purported class actions, were filed in various federal courts against Wyeth and, in certain of the actions, affiliates of Wyeth and certain other defendants relating to Effexor XR, which is the extended-release formulation of Effexor. The plaintiffs in each of the class actions seek to represent a class consisting of all persons in the U.S. and its territories who directly purchased, indirectly purchased or reimbursed patients for the purchase of Effexor XR or generic Effexor XR from any of the defendants from June 14, 2008 until the time the defendants’ allegedly unlawful conduct ceased. The plaintiffs in all of the actions allege delay in the launch of generic Effexor XR in the U.S. and its territories, in violation of federal antitrust laws and, in certain of the actions, the antitrust, consumer protection and various other laws of certain states, as the result of Wyeth fraudulently obtaining and improperly listing certain patents for Effexor XR, enforcing certain patents for Effexor XR, and entering into a litigation settlement agreement with a generic 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. | ||
Zoloft | ||
A number of individual lawsuits and multi-plaintiff lawsuits have been filed against us and/or our subsidiaries in various federal and state courts alleging personal injury as a result of the purported ingestion of Zoloft. Among other types of actions, the Zoloft personal injury litigation includes actions alleging a variety of birth defects as a result of the purported ingestion of Zoloft by women during pregnancy. Plaintiffs in these birth-defect actions seek compensatory and punitive damages and the disgorgement of profits resulting from the sale of Zoloft. In April 2012, the federal birth-defect cases were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Zoloft Products Liability Litigation MDL-2342) in the U.S. District Court for the Eastern District of Pennsylvania. | ||
Neurontin | ||
• | Off-Label Promotion Actions | |
A number of lawsuits, including purported class actions, have been filed against us in various federal and state courts alleging claims arising from the promotion and sale of Neurontin. The plaintiffs in the purported class actions seek to represent nationwide and certain statewide classes consisting of persons, including individuals, health insurers, employee benefit plans and other third-party payers, who purchased or reimbursed patients for the purchase of Neurontin that allegedly was used for indications other than those included in the product labeling approved by the FDA. In 2004, many of the suits pending in federal courts, including individual actions as well as purported class actions, were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Neurontin Marketing, Sales Practices and Product Liability Litigation MDL-1629) in the U.S. District Court for the District of Massachusetts. | ||
In the Multi-District Litigation, the District Court (i) denied the plaintiffs’ motion for certification of a nationwide class of all individual consumers and third-party payers who allegedly purchased or reimbursed patients for the purchase of Neurontin for off-label uses from 1994 through 2004, and (ii) dismissed actions by certain proposed class representatives for third-party payers and for individual consumers. In April 2013, the U.S. Court of Appeals for the First Circuit reversed the decision of the District Court dismissing the action by the third-party payer proposed class representatives and remanded that action to the District Court for further consideration, including reconsideration of class certification. | ||
In December 2013, the U.S. Supreme Court denied our petition for certiorari seeking review of the First Circuit's decision reversing the dismissal of the third-party payer purported class action. In April 2014, we and the attorneys for the proposed class representatives and for the plaintiffs in various individual actions entered into an agreement-in-principle to settle the third-party payer purported class action, subject to court approval, as well as the pending individual actions by third-party payers, for an aggregate of $325 million. As part of that settlement, we also are in the process of seeking to resolve the pending consumer actions related to Neurontin, including the purported statewide consumer class actions in California and Illinois. | ||
• | Personal Injury Actions | |
A number of individual lawsuits have been filed against us in various federal and state courts alleging suicide, attempted suicide and other personal injuries as a result of the purported ingestion of Neurontin. Certain of the federal actions have been transferred for consolidated pre-trial proceedings to the same Multi-District Litigation referred to in the first paragraph of the “Neurontin––Off-Label Promotion Actions” section above. | ||
• | Antitrust Action | |
In January 2011, in a Multi-District Litigation (In re Neurontin Antitrust Litigation MDL-1479) that consolidates four actions, the U.S. District Court for the District of New Jersey certified a nationwide class consisting of wholesalers and other entities who purchased Neurontin directly from Pfizer and Warner-Lambert during the period from December 11, 2002 to August 31, 2008 and who also purchased generic gabapentin after it became available. The complaints allege that Pfizer and Warner-Lambert engaged in anticompetitive conduct in violation of the Sherman Act that included, among other things, submitting patents for listing in the Orange Book and prosecuting and enforcing certain patents relating to Neurontin, as well as engaging in off-label marketing of Neurontin. Plaintiffs seek compensatory damages on behalf of the class, which may be subject to trebling. In April 2014, the parties entered into an agreement to settle this action for $190 million, subject to court approval. In addition, Pfizer and Warner-Lambert are defendants in two actions pending in the District of New Jersey, which were brought by certain direct purchasers who had opted out of the certified class, that assert allegations substantially similar to those in the class action. | ||
Lipitor | ||
• | Whistleblower Action | |
In 2004, a former employee filed a “whistleblower” action against us in the U.S. District Court for the Eastern District of New York. The complaint remained under seal until September 2007, at which time the U.S. Attorney for the Eastern District of New York declined to intervene in the case. We were served with the complaint in December 2007. Plaintiff alleges off-label promotion of Lipitor in violation of the Federal Civil False Claims Act and the false claims acts of certain states, and he seeks treble damages and civil penalties on behalf of the federal government and the specified states as the result of their purchase, or reimbursement of patients for the purchase, of Lipitor allegedly for such off-label uses. Plaintiff also seeks compensation as a whistleblower under those federal and state statutes. In addition, plaintiff alleges that he was wrongfully terminated, in violation of the anti-retaliation provisions of applicable federal and New York law, and he seeks damages and the reinstatement of his employment. In 2009, the District Court dismissed without prejudice the off-label promotion claims and, in 2010, plaintiff filed an amended complaint containing off-label promotion allegations that are substantially similar to the allegations in the original complaint. In November 2012, the District Court dismissed the amended complaint. In December 2012, plaintiff appealed the District Court's decision to the U.S. Court of Appeals for the Second Circuit. | ||
• | Antitrust Actions | |
Beginning in November 2011, purported class actions relating to Lipitor were filed in various federal courts against Pfizer, certain affiliates of Pfizer, and, in most of the actions, Ranbaxy, among others. The plaintiffs in these various actions seek to represent nationwide, multi-state or statewide classes consisting of persons or entities who directly purchased, indirectly purchased or reimbursed patients for the purchase of Lipitor (or, in certain of the actions, generic Lipitor) from any of the defendants from March 2010 until the cessation of the defendants’ allegedly unlawful conduct (the Class Period). The plaintiffs allege delay in the launch of generic Lipitor, in violation of federal antitrust laws and/or state antitrust, consumer protection and various other laws, resulting from (i) the 2008 agreement pursuant to which Pfizer and Ranbaxy settled certain patent litigation involving Lipitor, and Pfizer granted Ranbaxy a license to sell a generic version of Lipitor in various markets beginning on varying dates, and (ii) in certain of the actions, the procurement and/or enforcement of certain patents for Lipitor. Each of the actions seeks, among other things, treble damages on behalf of the putative class for alleged price overcharges for Lipitor (or, in certain of the actions, generic Lipitor) during the Class Period. In addition, individual actions have been filed against Pfizer, Ranbaxy and certain of their affiliates, among others, that assert claims and seek relief for the plaintiffs that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. These various actions have been consolidated for pre-trial proceedings in a Multi-District Litigation (In re Lipitor Antitrust Litigation MDL-2332) in the U.S. District Court for the District of New Jersey. | ||
In November 2012, the defendants moved to dismiss all of the foregoing actions. In September 2013, the court dismissed the claims by direct purchasers that relate to the procurement and/or enforcement of certain patents for Lipitor. In addition, the court limited the timeframe for which direct purchasers may pursue their remaining damage claims to the period from June 2011 to November 2011. In October 2013, all of the direct and indirect purchaser plaintiffs, except for certain individual plaintiffs, filed amended complaints. In November 2013, the defendants filed motions to dismiss the amended complaints. | ||
Also, in January 2013, the State of West Virginia filed an action in West Virginia state court against Pfizer and Ranbaxy, among others, that asserts claims and seeks relief on behalf of the State of West Virginia and residents of that state that are substantially similar to the claims asserted and the relief sought in the purported class actions described above. | ||
• | Personal Injury Actions | |
A number of individual and multi-plaintiff lawsuits have been filed against us in various federal and state courts alleging that the plaintiffs developed type 2 diabetes as the result of the purported ingestion of Lipitor. Plaintiffs seek compensatory and punitive damages. In February 2014, the federal actions were transferred for consolidated pre-trial proceedings to a Multi-District Litigation (In re Lipitor (Atorvastatin Calcium) Marketing, Sales Practices and Products Liability Litigation (No. II) MDL-2502) in the U.S. District Court for the District of South Carolina. | ||
Chantix/Champix | ||
Beginning in December 2008, purported class actions were filed against us in the Ontario Superior Court of Justice (Toronto Region), the Superior Court of Quebec (District of Montreal), the Court of Queen’s Bench of Alberta, Judicial District of Calgary, and the Superior Court of British Columbia (Vancouver Registry) on behalf of all individuals and third-party payers in Canada who have purchased and ingested Champix or reimbursed patients for the purchase of Champix. Each of these actions asserts claims under Canadian product liability law, including with respect to the safety and efficacy of Champix, and, on behalf of the putative class, seeks monetary relief, including punitive damages. In June 2012, the Ontario Superior Court of Justice certified the Ontario proceeding as a class action, defining the class as consisting of the following: (i) all persons in Canada who ingested Champix during the period from April 2, 2007 to May 31, 2010 and who experienced at least one of a number of specified neuropsychiatric adverse events; (ii) all persons who are entitled to assert claims in respect of Champix pursuant to Canadian legislation as the result of their relationship with a class member; and (iii) all health insurers who are entitled to assert claims in respect of Champix pursuant to Canadian legislation. The Ontario Superior Court of Justice certified the class against Pfizer Canada Inc. only and ruled that the action against Pfizer Inc. should be stayed until after the trial of the issues that are common to the class members. The actions in Quebec, Alberta and British Columbia have been stayed in favor of the Ontario action, which is proceeding on a national basis. | ||
Bapineuzumab | ||
In June 2010, a purported class action was filed in the U.S. District Court for the District of New Jersey against Pfizer, as successor to Wyeth, and several former officers of Wyeth. The complaint alleges that Wyeth and the individual defendants violated federal securities laws by making or causing Wyeth to make false and misleading statements, and by failing to disclose or causing Wyeth to fail to disclose material information, concerning the results of a clinical trial involving bapineuzumab, a product in development for the treatment of Alzheimer’s disease. The plaintiff seeks to represent a class consisting of all persons who purchased Wyeth securities from May 21, 2007 through July 2008 and seeks damages in an unspecified amount on behalf of the putative class. In February 2012, the court granted the defendants’ motion to dismiss the complaint. In December 2012, the court granted the plaintiff's motion to file an amended complaint. In April 2013, the court granted the defendants' motion to dismiss the amended complaint. In May 2013, the plaintiff appealed the District Court's decision to the U.S. Court of Appeals for the Third Circuit. | ||
Various Drugs: Co-Pay Programs | ||
In July 2012, a purported class action was filed against Pfizer in the U.S. District Court for the Southern District of Illinois. In December 2013, the plaintiffs filed an amended complaint. The plaintiffs sought to represent a class consisting of all entities in the U.S. and its territories that have reimbursed patients for the purchase of certain Pfizer drugs for which co-pay programs exist or have existed. The plaintiffs alleged that these programs violated the federal Racketeer Influenced and Corrupt Organizations (RICO) Act by providing an incentive for patients to use certain Pfizer drugs rather than less-expensive competitor products, thereby increasing the payers’ reimbursement costs. The plaintiffs also alleged that these programs constituted tortuous interference with contract. In April 2014, this action was settled on terms that are not material to Pfizer. | ||
A3. Legal Proceedings––Commercial and Other Matters | ||
Average Wholesale Price Litigation | ||
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 two of those actions have been resolved through settlement, dismissal or final judgment. The plaintiff states in the two remaining actions claim that the alleged spread between the AWPs at which purchasers were reimbursed and the actual sale prices was promoted by the defendants as an incentive to purchase certain of their products. In addition to suing on their own behalf, the two states seek to recover on behalf of individuals, private-sector insurance companies and medical plans in their states. These actions allege, among other things, fraud, unfair competition, unfair trade practices and the violation of consumer protection statutes, and seek monetary and other relief, including civil penalties and treble damages. | ||
Monsanto-Related Matters | ||
In 1997, Monsanto Company (Former Monsanto) contributed certain chemical manufacturing operations and facilities to a newly formed corporation, Solutia Inc. (Solutia), and spun off the shares of Solutia. In 2000, Former Monsanto merged with Pharmacia & Upjohn Company to form Pharmacia Corporation (Pharmacia). Pharmacia then transferred its agricultural operations to a newly created subsidiary, named Monsanto Company (New Monsanto), which it spun off in a two-stage process that was completed in 2002. Pharmacia was acquired by Pfizer in 2003 and is now a wholly owned subsidiary of Pfizer. | ||
In connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities related to Pharmacia’s former agricultural business. New Monsanto is defending and indemnifying Pharmacia in connection with various claims and litigation arising out of, or related to, the agricultural business. | ||
In connection with its spin-off in 1997, Solutia assumed, and agreed to indemnify Pharmacia for, liabilities related to Former Monsanto's chemical businesses. As the result of its reorganization under Chapter 11 of the U.S. Bankruptcy Code, Solutia’s indemnification obligations related to Former Monsanto’s chemical businesses are limited to sites that Solutia has owned or operated. In addition, in connection with its spinoff that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities primarily related to Former Monsanto's chemical businesses, including, but not limited to, any such liabilities that Solutia assumed. Solutia's and New Monsanto's assumption of and agreement to indemnify Pharmacia for these liabilities apply to pending actions and any future actions related to Former Monsanto's chemical businesses in which Pharmacia is named as a defendant, including, without limitation, actions asserting environmental claims, including alleged exposure to polychlorinated biphenyls. Solutia and New Monsanto are defending and indemnifying Pharmacia in connection with various claims and litigation arising out of, or related to, Former Monsanto’s chemical businesses. | ||
Trade Secrets Action in California | ||
In 2004, Ischemia Research and Education Foundation (IREF) and its chief executive officer brought an action in California Superior Court, Santa Clara County, against a former IREF employee and Pfizer. Plaintiffs allege that defendants conspired to misappropriate certain information from IREF’s allegedly proprietary database in order to assist Pfizer in designing and executing a clinical study of a Pfizer drug. In 2008, the jury returned a verdict for compensatory damages of approximately $38.7 million. In March 2009, the court awarded prejudgment interest, but declined to award punitive damages. In July 2009, the court granted our motion for a new trial and vacated the jury verdict. In February 2013, the trial court's decision was affirmed by the California Court of Appeal, Sixth Appellate District. In May 2013, the action was remanded for further proceedings to the California Superior Court, Santa Clara County. | ||
Environmental Matters | ||
In 2009, we submitted to the U.S. Environmental Protection Agency (EPA) a corrective measures study report with regard to Pharmacia Corporation's discontinued industrial chemical facility in North Haven, Connecticut and a revised site-wide feasibility study with regard to Wyeth Holdings Corporation's discontinued industrial chemical facility in Bound Brook, New Jersey. In September 2010, our corrective measures study report with regard to the North Haven facility was approved by the EPA, and we commenced construction of the site remedy in late 2011 under an Updated Administrative Order on Consent with the EPA. In July 2011, Wyeth Holdings Corporation finalized an Administrative Settlement Agreement and Order on Consent for Removal Action with the EPA with regard to the Bound Brook facility. In May 2012, we completed construction of an interim remedy to address the discharge of impacted groundwater from that facility to the Raritan River. In September 2012, the EPA issued a final remediation plan for the Bound Brook facility's main plant area, which is generally in accordance with one of the remedies evaluated in our revised site-wide feasibility study. In March 2013, Wyeth Holdings Corporation entered into an Administrative Settlement Agreement and Order on Consent with the EPA to allow us to undertake detailed engineering design of the remedy for the main plant area and to perform a focused feasibility study for two adjacent lagoons. The estimated costs of the site remedy for the North Haven facility and the site remediation for the Bound Brook facility are covered by accruals previously taken by us. | ||
We are a party to a number of other proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA or Superfund), and other state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation. | ||
In October 2011, we voluntarily disclosed to the EPA potential non-compliance with certain provisions of the federal Clean Air Act at our Barceloneta, Puerto Rico manufacturing facility. We do not expect that any injunctive relief or penalties that may result from our voluntary disclosure will be material to Pfizer. Separately, in October 2012, the EPA issued an administrative complaint and penalty demand of $216,000 to resolve alleged non-compliance with similar provisions of the federal Clean Air Act that the EPA identified as part of its March 2010 inspection of the Barceloneta facility. We are in discussions with the EPA seeking to resolve these matters. | ||
A4. Legal Proceedings––Government Investigations | ||
Like other pharmaceutical companies, we are subject to extensive regulation by national, state and local government agencies in the U.S. and in the other countries in which we operate. As a result, we have interactions with government agencies on an ongoing basis. It is possible that criminal charges and substantial fines and/or civil penalties could result from government investigations. Among the investigations by government agencies is the matter discussed below. | ||
In 2009, the U.S. Department of Justice (DOJ) filed a civil complaint in intervention in two qui tam actions that had been filed under seal in the U.S. District Court for the District of Massachusetts. The complaint alleges that Wyeth’s practices relating to the pricing for Protonix for Medicaid rebate purposes between 2001 and 2006, prior to Wyeth's acquisition by Pfizer, violated the Federal Civil False Claims Act and federal common law. The two qui tam actions have been unsealed and the complaints include substantially similar allegations. In addition, in 2009, several states and the District of Columbia filed a complaint under the same docket number asserting violations of various state laws based on allegations substantially similar to those set forth in the civil complaint filed by the DOJ. | ||
B. Guarantees and Indemnifications | ||
In the ordinary course of business and in connection with the sale of assets and businesses, we often indemnify our counterparties against certain liabilities that may arise in connection with the transaction or related to activities prior to the transaction. These indemnifications typically pertain to environmental, tax, employee and/or product-related matters and patent-infringement claims. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we would be required to reimburse the loss. These indemnifications are generally subject to threshold amounts, specified claim periods and other restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of March 30, 2014, recorded amounts for the estimated fair value of these indemnifications are not significant. | ||
Pfizer Inc. has also guaranteed the long-term debt of certain companies that it acquired and that now are subsidiaries of Pfizer. |
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Segment, Geographic and Other Revenue Information | 3 Months Ended | ||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment, Geographic and Other Revenue Information | ' | ||||||||||||||||
Segment, Geographic and Other Revenue Information | |||||||||||||||||
A. Segment Information | |||||||||||||||||
We manage our commercial operations through a global commercial structure consisting of three operating segments, each of which is led by a single manager––the Global Innovative Pharmaceutical segment (GIP); the Global Vaccines, Oncology and Consumer Healthcare segment (VOC); and the Global Established Pharmaceutical segment (GEP). Each operating segment has responsibility for its commercial activities and for certain IPR&D projects for new investigational products and additional indications for in-line products that generally have achieved proof of concept. | |||||||||||||||||
We have restated prior-period information (Revenues and Earnings, as defined by management) to conform to the current management structure. As our operations were not managed under the new structure until the beginning of the first quarter of 2014, certain costs and expenses could not be directly attributed to one of the new operating segments. As a result, our operating segment results for 2013 include allocations. The amounts subjected to allocation methods in 2013 were approximately $500 million of Selling, informational and administrative expenses (SI&A) and approximately $260 million of Research and development expenses (R&D): | |||||||||||||||||
• | The SI&A expenses were allocated using proportional allocation methods based on associated selling costs, revenues or product-specific costs, as applicable. | ||||||||||||||||
• | The R&D expenses were allocated based on product-specific R&D costs or revenue metrics, as applicable. | ||||||||||||||||
Management believes that the allocations are reasonable. | |||||||||||||||||
We regularly review our segments and the approach used by management to evaluate performance and allocate resources. | |||||||||||||||||
Operating Segments | |||||||||||||||||
Some additional information about each segment follows: | |||||||||||||||||
• | Global Innovative Pharmaceutical segment––GIP comprises medicines within several therapeutic areas that are generally expected to have market exclusivity beyond 2015. These therapeutic areas include immunology and inflammation, cardiovascular/metabolic, neuroscience and pain, rare diseases and women's/men's health. | ||||||||||||||||
• | Global Vaccines, Oncology and Consumer Healthcare segment––VOC focuses on the development and commercialization of vaccines and products for oncology and consumer healthcare. Each of the three businesses that comprise this segment operates with distinct specialization in terms of the science, talent and market approach necessary to deliver value to consumers and patients. | ||||||||||||||||
• | Global Established Pharmaceutical segment––GEP includes the brands that have lost market exclusivity and, generally, the mature, patent-protected products that are expected to lose exclusivity through 2015 in most major markets and, to a much smaller extent, generic pharmaceuticals. Additionally, GEP includes our sterile injectable products and biosimilar development portfolio. | ||||||||||||||||
Our chief operating decision maker uses the revenues and earnings of the three operating segments, among other factors, for performance evaluation and resource allocation. | |||||||||||||||||
Other Costs and Business Activities | |||||||||||||||||
Certain costs are not allocated to our operating segment results, such as costs associated with the following: | |||||||||||||||||
• | Worldwide Research and Development, which is generally responsible for research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate operating segment for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization also has responsibility for certain science-based and other platform-services organizations, which provide technical expertise and other services to the various R&D projects. Worldwide Research and Development is also responsible for facilitating all regulatory submissions and interactions with regulatory agencies, including all safety-event activities. | ||||||||||||||||
• | Pfizer Medical, which is responsible for the provision of medical information to healthcare providers, patients and other parties, transparency and disclosure activities, clinical trial results publication, grants for healthcare quality improvement and medical education, partnerships with global public health and medical associations, regulatory inspection readiness reviews, internal audits of Pfizer-sponsored clinical trials and internal regulatory compliance processes. | ||||||||||||||||
• | Corporate, representing platform functions (such as worldwide technology, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance and worldwide procurement) and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments. | ||||||||||||||||
• | Other unallocated costs, representing overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. | ||||||||||||||||
• | Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) acquisition-related costs, where we incur costs for executing the transaction, integrating the acquired operations and restructuring the combined company; and (iii) certain significant items, which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and disposals of assets or businesses, including, as applicable, any associated transition activities. | ||||||||||||||||
Segment Assets | |||||||||||||||||
We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared (such as our plant network assets) or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $172 billion as of March 30, 2014 and approximately $172 billion as of December 31, 2013. | |||||||||||||||||
Selected Income Statement Information | |||||||||||||||||
The following table provides selected income statement information by reportable segment: | |||||||||||||||||
Revenues | Earnings(a) | ||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Three Months Ended | |||||||||||||||||
Reportable Segments: | |||||||||||||||||
Global Innovative Pharmaceutical (GIP) | $ | 3,076 | $ | 3,306 | $ | 1,767 | $ | 1,895 | |||||||||
Global Vaccines, Oncology and Consumer Healthcare (VOC) | 2,174 | 2,190 | 1,057 | 995 | |||||||||||||
Global Established Pharmaceutical (GEP) | 5,990 | 6,861 | 4,049 | 4,452 | |||||||||||||
Total reportable segments | 11,240 | 12,357 | 6,873 | 7,342 | |||||||||||||
Other business activities(b) | 56 | 53 | (667 | ) | (660 | ) | |||||||||||
Reconciling Items: | |||||||||||||||||
Corporate(c) | — | — | (1,200 | ) | (1,334 | ) | |||||||||||
Purchase accounting adjustments(c) | — | — | (1,008 | ) | (1,219 | ) | |||||||||||
Acquisition-related costs(c) | — | — | (30 | ) | (90 | ) | |||||||||||
Certain significant items(d) | 57 | — | (1,016 | ) | (88 | ) | |||||||||||
Other unallocated | — | — | (105 | ) | (226 | ) | |||||||||||
$ | 11,353 | $ | 12,410 | $ | 2,847 | $ | 3,725 | ||||||||||
(a) | Income from continuing operations before provision for taxes on income. | ||||||||||||||||
(b) | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. | ||||||||||||||||
(c) | As described above in the "Other Costs and Business Activities" section. | ||||||||||||||||
(d) | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. | ||||||||||||||||
For Revenues in the first quarter of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | |||||||||||||||||
For Earnings in the first quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $8 million, (ii) charges for certain legal matters of $694 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $134 million and (v) other charges of $82 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. | |||||||||||||||||
For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $215 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $394 million, (iv) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $18 million and (vi) other charges of $38 million. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. | |||||||||||||||||
Equity in the net income of investees accounted for by the equity method is not significant for any of our operating segments. | |||||||||||||||||
B. Geographic Information | |||||||||||||||||
The following table provides revenues by geographic area: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | % Change | ||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 4,275 | $ | 4,914 | (13 | ) | |||||||||||
Developed Europe(a) | 2,795 | 2,804 | — | ||||||||||||||
Developed Rest of World(b) | 1,728 | 2,032 | (15 | ) | |||||||||||||
Emerging Markets(c) | 2,555 | 2,660 | (4 | ) | |||||||||||||
Revenues | $ | 11,353 | $ | 12,410 | (9 | ) | |||||||||||
(a) | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.2 billion in the first quarter of 2014 and $2.1 billion in the first quarter of 2013. | ||||||||||||||||
(b) | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | ||||||||||||||||
(c) | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | ||||||||||||||||
C. Other Revenue Information | |||||||||||||||||
The following table provides detailed revenue information: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | Business(a) | March 30, | March 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||||
Biopharmaceutical revenues: | |||||||||||||||||
Lyrica(b) | GIP/GEP | $ | 1,150 | $ | 1,066 | ||||||||||||
Prevnar family | V | 927 | 927 | ||||||||||||||
Enbrel (Outside the U.S. & Canada) | GIP | 914 | 877 | ||||||||||||||
Celebrex | GEP | 624 | 653 | ||||||||||||||
Lipitor | GEP | 457 | 626 | ||||||||||||||
Viagra(c) | GEP/GIP | 374 | 461 | ||||||||||||||
Zyvox | GEP | 321 | 342 | ||||||||||||||
Norvasc | GEP | 278 | 301 | ||||||||||||||
Sutent | O | 268 | 302 | ||||||||||||||
Premarin family | GEP | 248 | 244 | ||||||||||||||
BeneFIX | GIP | 201 | 189 | ||||||||||||||
Vfend | GEP | 177 | 187 | ||||||||||||||
Pristiq | GEP | 172 | 166 | ||||||||||||||
Genotropin | GIP | 166 | 189 | ||||||||||||||
Chantix/Champix | GIP | 147 | 166 | ||||||||||||||
Refacto AF/Xyntha | GIP | 145 | 139 | ||||||||||||||
Xalatan/Xalacom | GEP | 119 | 147 | ||||||||||||||
Medrol | GEP | 106 | 113 | ||||||||||||||
Zoloft | GEP | 101 | 116 | ||||||||||||||
Zithromax/Zmax | GEP | 92 | 116 | ||||||||||||||
Sulperazon | GEP | 88 | 71 | ||||||||||||||
Inlyta | O | 88 | 63 | ||||||||||||||
Xalkori | O | 88 | 53 | ||||||||||||||
Rapamune | GIP | 88 | 84 | ||||||||||||||
Relpax | GEP | 87 | 86 | ||||||||||||||
Effexor | GEP | 82 | 105 | ||||||||||||||
Fragmin | GEP | 81 | 86 | ||||||||||||||
Revatio | GEP | 76 | 72 | ||||||||||||||
Zosyn/Tazocin | GEP | 74 | 87 | ||||||||||||||
Tygacil | GEP | 74 | 87 | ||||||||||||||
Cardura | GEP | 66 | 76 | ||||||||||||||
Toviaz | GIP | 63 | 52 | ||||||||||||||
EpiPen | GEP | 63 | 72 | ||||||||||||||
Inspra | GEP | 61 | 52 | ||||||||||||||
Xanax/Xanax XR | GEP | 59 | 70 | ||||||||||||||
Depo-Provera | GEP | 53 | 37 | ||||||||||||||
Diflucan | GEP | 52 | 45 | ||||||||||||||
Xeljanz | GIP | 52 | 11 | ||||||||||||||
Caduet | GEP | 50 | 56 | ||||||||||||||
Somavert | GIP | 50 | 48 | ||||||||||||||
Alliance revenues(d) | GEP/GIP | 213 | 747 | ||||||||||||||
All other GIP | GIP | 145 | 166 | ||||||||||||||
All other GEP | GEP | 1,697 | 1,959 | ||||||||||||||
All other V/O | V/O | 42 | 34 | ||||||||||||||
Total biopharmaceutical revenues | 10,479 | 11,546 | |||||||||||||||
Other revenues: | |||||||||||||||||
Consumer Healthcare | C | 761 | 811 | ||||||||||||||
Other(e) | 113 | 53 | |||||||||||||||
Revenues | $ | 11,353 | $ | 12,410 | |||||||||||||
(a) | Indicates the business to which the revenues relate. GIP =he Global Innovative Pharmaceutical segment; V=he Global Vaccines | ||||||||||||||||
business; O=he Global Oncology business; C =he Consumer Healthcare business; and GEP =he Global Established Pharmaceutical segment. | |||||||||||||||||
(b) | Lyrica revenues from all of Europe are included in GEP. All other Lyrica revenues are included in GIP. | ||||||||||||||||
(c) | Viagra revenues from the U.S. and Canada are included in GIP. All other Viagra revenues are included in GEP. | ||||||||||||||||
(d) | Includes Enbrel (GIP, in the U.S. and Canada through October 31, 2013), Spiriva (GEP), Rebif (GIP), Aricept (GEP) and Eliquis (GIP). | ||||||||||||||||
(e) | Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes, in 2014, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Subsequent_Event_Notes
Subsequent Event (Notes) | 3 Months Ended |
Mar. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Event | |
On April 28, 2014, Pfizer issued an announcement pursuant to Rule 2.4 of the U.K. City Code on Takeovers and Mergers disclosing that (a) in January 2014, Pfizer submitted a preliminary, non-binding indication of interest to the Board of Directors of AstraZeneca PLC (AstraZeneca) regarding a possible merger transaction with AstraZeneca; (b) after limited high-level discussions, AstraZeneca declined to pursue negotiations, the discussions were discontinued on January 14, 2014 and Pfizer then ceased to consider a possible transaction; and (c) in light of recent market developments, Pfizer contacted AstraZeneca on April 26, 2014 seeking to renew discussions, but AstraZeneca again declined to engage. On May 2, 2014, Pfizer issued an announcement pursuant to Rule 2.4 of the U.K. City Code on Takeovers and Mergers disclosing, among other things, that, having consulted with major shareholders, it submitted a revised written proposal to AstraZeneca to make an offer to combine the two companies pursuant to which AstraZeneca shareholders would receive, for each AstraZeneca share, 1.845 shares in the combined entity and 1,598 pence in cash. The revised proposal was rejected by AstraZeneca. Pfizer is considering its options with respect to AstraZeneca. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
We prepared the condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. | ||
Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three months ended February 23, 2014 and February 24, 2013. | ||
In the condensed consolidated statements of comprehensive income, we have revised the presentation of other comprehensive income/(loss) shown in prior periods for derivative financial instruments and available-for-sale securities, as certain items had been reported net. | ||
On June 24, 2013, we completed the full disposition of our Animal Health business, Zoetis Inc. (Zoetis). On February 6, 2013, an initial public offering (IPO) of the Class A common stock of Zoetis was completed, pursuant to which we sold 99.015 million shares of Class A common stock of Zoetis, which represented approximately 19.8% of the total outstanding Zoetis shares. The operating results of this business are reported as Discontinued operations––net of tax in the condensed consolidated statement of income for the three months ended March 31, 2013. Prior periods have been restated. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | ||
Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. | ||
We are responsible for the unaudited financial statements included in this Quarterly Report on Form 10-Q. The financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our condensed consolidated balance sheets and condensed consolidated statements of income. | ||
The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2013 Annual Report on Form 10-K. | ||
Adoption of New Accounting Standards | ' | |
Adoption of New Accounting Standards | ||
We adopted the following new accounting and disclosure standards as of January 1, 2014 and there were no impacts to our condensed consolidated financial statements: | ||
• | A new standard that clarified the accounting for cumulative translation adjustment (CTA) upon derecognition of a group of assets that is a business or an equity-method investment within a foreign entity. | |
• | A new standard regarding the measurement of obligations resulting from joint and several liability arrangements that may include debt agreements, other contractual obligations and settled litigation or judicial rulings. | |
Fair Value | ' | |
Fair Value | ||
Our fair value methodologies depend on the following types of inputs: | ||
• | Quoted prices for identical assets or liabilities in active markets (Level 1 inputs). | |
• | Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable (Level 2 inputs). | |
• | Unobservable inputs that reflect estimates and assumptions (Level 3 inputs). | |
A single estimate of fair value can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. |
Divestiture_and_EquityMethod_I1
Divestiture and Equity-Method Investment (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Business Combinations, Discontinued Operations, And Disposal Groups [Abstract] | ' | ||||||||
Schedule of Discontinued Operations-Net of Tax | ' | ||||||||
The following table provides the components of Discontinued operations—net of tax: | |||||||||
Three Months Ended | |||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
Revenues | $ | — | $ | 1,089 | |||||
Pre-tax income from discontinued operations | 5 | 200 | |||||||
Provision for taxes on income(a) | — | 51 | |||||||
Income from discontinued operations––net of tax | 5 | 149 | |||||||
Pre-tax gain on disposal of discontinued operations | 64 | — | |||||||
Benefit for taxes on income | (4 | ) | — | ||||||
Gain on disposal of discontinued operations––net of tax(b) | 68 | — | |||||||
Discontinued operations––net of tax | $ | 73 | $ | 149 | |||||
(a) | Includes a deferred tax expense of $7 million for the three months ended March 31, 2013. | ||||||||
(b) | For the three months ended March 30, 2014, represents post-close adjustments. | ||||||||
Restructuring_Charges_and_Othe1
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||||||
The following table provides the components of and changes in our restructuring accruals: | |||||||||||||||||
(MILLIONS OF DOLLARS) | Employee | Asset | Exit Costs | Accrual | |||||||||||||
Termination | Impairment | ||||||||||||||||
Costs | Charges | ||||||||||||||||
Balance, December 31, 2013(a) | $ | 1,685 | $ | — | $ | 94 | $ | 1,779 | |||||||||
Provision | 30 | 6 | 4 | 40 | |||||||||||||
Utilization and other(b) | (115 | ) | (6 | ) | (25 | ) | (146 | ) | |||||||||
Balance, March 30, 2014(c) | $ | 1,600 | $ | — | $ | 73 | $ | 1,673 | |||||||||
(a) | Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($767 million). | ||||||||||||||||
(b) | Includes adjustments for foreign currency translation. | ||||||||||||||||
(c) | Included in Other current liabilities ($968 million) and Other noncurrent liabilities ($705 million). | ||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
The following table provides the components of costs associated with acquisitions and cost-reduction/productivity initiatives: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Restructuring charges(a): | |||||||||||||||||
Employee terminations | $ | 30 | $ | (21 | ) | ||||||||||||
Asset impairments | 6 | 103 | |||||||||||||||
Exit costs | 4 | 13 | |||||||||||||||
Total restructuring charges | 40 | 95 | |||||||||||||||
Integration costs(b) | 18 | 36 | |||||||||||||||
Restructuring charges and certain acquisition-related costs | 58 | 131 | |||||||||||||||
Additional depreciation––asset restructuring recorded in our condensed consolidated statements of income as follows(c): | |||||||||||||||||
Cost of sales | 74 | 33 | |||||||||||||||
Selling, informational and administrative expenses | — | 11 | |||||||||||||||
Research and development expenses | — | 91 | |||||||||||||||
Total additional depreciation––asset restructuring | 74 | 135 | |||||||||||||||
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | |||||||||||||||||
Cost of sales | 6 | 6 | |||||||||||||||
Selling, informational and administrative expenses | 15 | 31 | |||||||||||||||
Research and development expenses | 11 | 2 | |||||||||||||||
Total implementation costs | 32 | 39 | |||||||||||||||
Total costs associated with acquisitions and cost-reduction/productivity initiatives | $ | 164 | $ | 305 | |||||||||||||
(a) | In the three months ended March 30, 2014, Employee terminations represent the expected reduction of the workforce by approximately 200 employees, mainly in manufacturing and sales. | ||||||||||||||||
The restructuring charges in 2014 are associated with the following: | |||||||||||||||||
• | For the three months ended March 30, 2014, the Global Innovative Pharmaceutical segment (GIP) ($2 million), the Global Established Pharmaceutical segment (GEP) ($7 million), Worldwide Research and Development and Medical ($1 million), manufacturing operations ($26 million) and Corporate ($4 million). | ||||||||||||||||
The restructuring charges in 2013 are associated with the following: | |||||||||||||||||
• | For the three months ended March 31, 2013, total operating segments ($13 million), Worldwide Research and Development and Medical ($2 million), manufacturing operations ($3 million) and Corporate ($77 million). In 2014, we revised our operating segments and are unable to identify these prior-period restructuring charges to the new individual segments. | ||||||||||||||||
(b) | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | ||||||||||||||||
(c) | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | ||||||||||||||||
(d) | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Other_IncomeDeductions_Net_Tab
Other (Income)/Deductions - Net (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||||||
Schedule of Other (Income)/Deductions-Net | ' | ||||||||||||||||||||
The following table provides components of Other deductions––net: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Interest income(a) | $ | (92 | ) | $ | (95 | ) | |||||||||||||||
Interest expense(a) | 321 | 371 | |||||||||||||||||||
Net interest expense | 229 | 276 | |||||||||||||||||||
Royalty-related income(b) | (248 | ) | (63 | ) | |||||||||||||||||
Certain legal matters, net(c) | 694 | (83 | ) | ||||||||||||||||||
Gain associated with the transfer of certain product rights(d) | — | (490 | ) | ||||||||||||||||||
Net gains on asset disposals(e) | (181 | ) | (26 | ) | |||||||||||||||||
Certain asset impairments and related charges(f) | 115 | 398 | |||||||||||||||||||
Costs associated with the Zoetis IPO(g) | — | 18 | |||||||||||||||||||
Other, net | 14 | 115 | |||||||||||||||||||
Other deductions––net | $ | 623 | $ | 145 | |||||||||||||||||
(a) | Interest income decreased in the first three months of 2014 due to lower cash equivalents and investment balances and lower investment returns. Interest expense decreased in the first three months of 2014 primarily due to the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | ||||||||||||||||||||
(b) | Royalty-related income increased in 2014 due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period. | ||||||||||||||||||||
(c) | In the first quarter of 2014, includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter. In the first quarter of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. For additional information, see Note 12A. Commitments and Contingencies: Legal Proceedings. | ||||||||||||||||||||
(d) | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | ||||||||||||||||||||
(e) | In the first quarter of 2014, primarily includes gains on sales of product rights (approximately $70 million) and gains on sales of investments in equity securities (approximately $95 million). | ||||||||||||||||||||
(f) | In the first quarter of 2014, includes an intangible asset impairment charge of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first quarter of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program. In the first quarter of 2013, includes an intangible asset impairment charge of $394 million, all of which relates to developed technology rights for use in the development of bone and cartilage. The intangible asset impairment charge for 2013 is associated with the Global Innovative Pharmaceutical segment and reflects, among other things, updated commercial forecasts. | ||||||||||||||||||||
(g) | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | ||||||||||||||||||||
Schedule of Additional Information About Intangible Assets Impaired | ' | ||||||||||||||||||||
The following table provides additional information about the intangible assets that were impaired during the first three months of 2014 in Other deductions––net: | |||||||||||||||||||||
Fair Value(a) | Three Months Ended March 30, 2014 | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | ||||||||||||||||
Intangible assets––IPR&D(b) | $ | 79 | $ | — | $ | — | $ | 79 | $ | 114 | |||||||||||
Total | $ | 79 | $ | — | $ | — | $ | 79 | $ | 114 | |||||||||||
(a) | The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | ||||||||||||||||||||
(b) | Reflects intangible assets written down to fair value in the first three months of 2014. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters_Tables
Tax Matters (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Tax Benefit on Other Comprehensive Income/(Loss) | ' | ||||||||
The following table provides the components of the tax provision/(benefit) on Other comprehensive loss: | |||||||||
Three Months Ended | |||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustments(a) | $ | (7 | ) | $ | 71 | ||||
Unrealized holding losses on derivative financial instruments | (17 | ) | (155 | ) | |||||
Reclassification adjustments for realized (gains)/losses | (1 | ) | 167 | ||||||
(18 | ) | 12 | |||||||
Unrealized holding gains on available-for-sale securities | 27 | 11 | |||||||
Reclassification adjustments for realized gains | (29 | ) | (25 | ) | |||||
(2 | ) | (14 | ) | ||||||
Benefit plans: actuarial gains, net | 1 | 6 | |||||||
Reclassification adjustments related to amortization | 16 | 54 | |||||||
Reclassification adjustments related to settlements, net | 8 | 20 | |||||||
Foreign currency translation adjustments and other | (12 | ) | 37 | ||||||
13 | 117 | ||||||||
Benefit plans: prior service costs and other | — | (1 | ) | ||||||
Reclassification adjustments related to amortization | (7 | ) | (6 | ) | |||||
Reclassification adjustments related to curtailments, net | (1 | ) | (3 | ) | |||||
Other | 5 | — | |||||||
(3 | ) | (10 | ) | ||||||
Tax provision/(benefit) on other comprehensive loss | $ | (17 | ) | $ | 176 | ||||
(a) | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | ' | ||||||||||||||||||||||||
The following table provides the changes, net of tax, in Accumulated other comprehensive loss: | |||||||||||||||||||||||||
Net Unrealized Gains/(Losses) | Benefit Plans | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Foreign Currency Translation Adjustments | Derivative Financial Instruments | Available-For-Sale Securities | Actuarial Gains/(Losses) | Prior Service (Costs)/Credits and Other | Accumulated Other Comprehensive Loss | |||||||||||||||||||
Balance, December 31, 2013 | $ | (590 | ) | $ | 79 | $ | 150 | $ | (3,223 | ) | $ | 313 | $ | (3,271 | ) | ||||||||||
Other comprehensive income/(loss)(a) | (128 | ) | (28 | ) | 11 | 46 | (20 | ) | (119 | ) | |||||||||||||||
Balance, March 30, 2014 | $ | (718 | ) | $ | 51 | $ | 161 | $ | (3,177 | ) | $ | 293 | $ | (3,390 | ) | ||||||||||
(a) | Amounts do not include foreign currency translation loss of $2 million attributable to noncontrolling interests for the first three months of 2014. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | ||||||||||||||||||||||||
The following table provides information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: | |||||||||||||||||||||||||
Amount of | Amount of | Amount of | |||||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | Gains/(Losses) | |||||||||||||||||||||||
Recognized in OID(a), (b), (c) | Recognized in OCI | Reclassified from | |||||||||||||||||||||||
(Effective Portion)(a), (d) | OCI into OID | ||||||||||||||||||||||||
(Effective Portion)(a), (d) | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | $ | — | $ | — | $ | (15 | ) | $ | (449 | ) | $ | 9 | $ | (382 | ) | ||||||||||
Foreign currency forward-exchange contracts | — | — | (43 | ) | 53 | (21 | ) | (144 | ) | ||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency swaps | — | (3 | ) | (8 | ) | 123 | — | — | |||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges: | |||||||||||||||||||||||||
Foreign currency forward-exchange contracts | (12 | ) | 149 | — | — | — | — | ||||||||||||||||||
Foreign currency swaps | (3 | ) | (4 | ) | — | — | — | — | |||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships: | |||||||||||||||||||||||||
Foreign currency long-term debt | — | — | (14 | ) | 63 | — | — | ||||||||||||||||||
All other net | (3 | ) | — | — | — | — | — | ||||||||||||||||||
$ | (18 | ) | $ | 142 | $ | (80 | ) | $ | (210 | ) | $ | (12 | ) | $ | (526 | ) | |||||||||
(a) | OID =ther (income)/deductions—net, included in Other deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income. | ||||||||||||||||||||||||
(b) | Also includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges, as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. | ||||||||||||||||||||||||
(c) | There was no significant ineffectiveness for any period presented. | ||||||||||||||||||||||||
(d) | For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive loss––Unrealized holding gains/(losses) on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive loss––Foreign currency translation adjustments | ||||||||||||||||||||||||
Information about Certain Financial Assets and Liabilities | ' | ||||||||||||||||||||||||
The following table provides additional information about certain of our financial assets and liabilities: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Selected financial assets measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Trading securities(b) | $ | 103 | $ | 126 | |||||||||||||||||||||
Available-for-sale debt securities(c) | 35,693 | 34,899 | |||||||||||||||||||||||
Available-for-sale money market funds | 977 | 945 | |||||||||||||||||||||||
Available-for-sale equity securities, excluding money market funds(c) | 462 | 356 | |||||||||||||||||||||||
Derivative financial instruments in receivable positions(d): | |||||||||||||||||||||||||
Interest rate swaps | 438 | 468 | |||||||||||||||||||||||
Foreign currency swaps | 953 | 871 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 49 | 172 | |||||||||||||||||||||||
38,675 | 37,837 | ||||||||||||||||||||||||
Other selected financial assets | |||||||||||||||||||||||||
Held-to-maturity debt securities, carried at amortized cost(c), (e) | 8,501 | 9,139 | |||||||||||||||||||||||
Private equity securities, carried at equity-method or at cost(e), (f) | 2,276 | 2,270 | |||||||||||||||||||||||
10,777 | 11,409 | ||||||||||||||||||||||||
Total selected financial assets | $ | 49,452 | $ | 49,246 | |||||||||||||||||||||
Financial liabilities measured at fair value on a recurring basis(a) | |||||||||||||||||||||||||
Derivative financial instruments in a liability position(g): | |||||||||||||||||||||||||
Interest rate swaps | $ | 187 | $ | 301 | |||||||||||||||||||||
Foreign currency swaps | 116 | 110 | |||||||||||||||||||||||
Foreign currency forward-exchange contracts | 184 | 219 | |||||||||||||||||||||||
487 | 630 | ||||||||||||||||||||||||
Other financial liabilities(h) | |||||||||||||||||||||||||
Short-term borrowings, carried at historical proceeds, as adjusted(e) | 9,319 | 6,027 | |||||||||||||||||||||||
Long-term debt, carried at historical proceeds, as adjusted(i), (j) | 27,649 | 30,462 | |||||||||||||||||||||||
36,968 | 36,489 | ||||||||||||||||||||||||
Total selected financial liabilities | $ | 37,455 | $ | 37,119 | |||||||||||||||||||||
(a) | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 inputs. | ||||||||||||||||||||||||
(b) | Trading securities are held in trust for legacy business acquisition severance benefits. | ||||||||||||||||||||||||
(c) | Gross unrealized gains and losses are not significant. | ||||||||||||||||||||||||
(d) | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $26 million and foreign currency forward-exchange contracts with fair values of $30 million as of March 30, 2014; and, interest rate swaps with fair values of $38 million, foreign currency swaps with fair values of $30 million and foreign currency forward-exchange contracts with fair values of $66 million as of December 31, 2013. | ||||||||||||||||||||||||
(e) | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 30, 2014 or December 31, 2013. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs. | ||||||||||||||||||||||||
(f) | Our private equity securities represent investments in the life sciences sector. | ||||||||||||||||||||||||
(g) | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $78 million and foreign currency forward-exchange contracts with fair values of $55 million as of March 30, 2014; and, foreign currency swaps with fair values of $76 million and foreign currency forward-exchange contracts with fair values of $77 million as of December 31, 2013. | ||||||||||||||||||||||||
(h) | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | ||||||||||||||||||||||||
(i) | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | ||||||||||||||||||||||||
(j) | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance. | ||||||||||||||||||||||||
Selected Financial Assets and Liabilities Presented in the Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,171 | $ | 1,104 | |||||||||||||||||||||
Short-term investments | 31,019 | 30,225 | |||||||||||||||||||||||
Long-term investments | 15,822 | 16,406 | |||||||||||||||||||||||
Other current assets(a) | 132 | 286 | |||||||||||||||||||||||
Other noncurrent assets(b) | 1,308 | 1,225 | |||||||||||||||||||||||
$ | 49,452 | $ | 49,246 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Short-term borrowings, including current portion of long-term debt | $ | 9,319 | $ | 6,027 | |||||||||||||||||||||
Other current liabilities(c) | 275 | 303 | |||||||||||||||||||||||
Long-term debt | 27,649 | 30,462 | |||||||||||||||||||||||
Other noncurrent liabilities(d) | 212 | 327 | |||||||||||||||||||||||
$ | 37,455 | 37,119 | |||||||||||||||||||||||
(a) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($68 million), foreign currency swaps ($15 million) and foreign currency forward-exchange contracts ($49 million) and, as of December 31, 2013, include interest rate swaps ($90 million), foreign currency swaps ($24 million) and foreign currency forward-exchange contracts ($172 million). | ||||||||||||||||||||||||
(b) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($370 million) and foreign currency swaps ($938 million) and, as of December 31, 2013, include interest rate swaps ($378 million) and foreign currency swaps ($847 million). | ||||||||||||||||||||||||
(c) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($1 million), foreign currency swaps ($90 million) and foreign currency forward-exchange contracts ($184 million) and, as of December 31, 2013, include foreign currency swaps ($84 million) and foreign currency forward-exchange contracts ($219 million). | ||||||||||||||||||||||||
(d) | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($186 million) and foreign currency swaps ($26 million) and, as of December 31, 2013, include interest rate swaps ($301 million) and foreign currency swaps ($26 million). | ||||||||||||||||||||||||
Contractual Maturities of Available-for-sale and Held-to-maturity Debt Securities | ' | ||||||||||||||||||||||||
The following table provides the contractual maturities of the available-for-sale and held-to-maturity debt securities: | |||||||||||||||||||||||||
Years | 30-Mar-14 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Within 1 | Over 1 | Over 5 | Over 10 | Total | ||||||||||||||||||||
to 5 | to 10 | ||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | $ | 11,530 | $ | 2,141 | $ | — | $ | — | $ | 13,671 | |||||||||||||||
Corporate debt(b) | 2,701 | 4,696 | 1,260 | 290 | 8,947 | ||||||||||||||||||||
U.S. government debt | 3,483 | 166 | — | — | 3,649 | ||||||||||||||||||||
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities | — | 2,576 | 10 | 299 | 2,885 | ||||||||||||||||||||
Supranational debt(a) | 990 | 940 | — | — | 1,930 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt(a) | 1,568 | 356 | — | — | 1,924 | ||||||||||||||||||||
Reverse repurchase agreements(c) | 1,433 | — | — | — | 1,433 | ||||||||||||||||||||
Government National Mortgage Association and other U.S. government guaranteed asset-backed securities | 1,076 | 139 | — | 39 | 1,254 | ||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||
Western European, Scandinavian and other government debt(a) | 5,336 | — | — | — | 5,336 | ||||||||||||||||||||
Western European, Scandinavian and other government agency debt, certificates of deposit and other(a) | 2,995 | 169 | 1 | — | 3,165 | ||||||||||||||||||||
Total debt securities | $ | 31,112 | $ | 11,183 | $ | 1,271 | $ | 628 | $ | 44,194 | |||||||||||||||
(a) | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | ||||||||||||||||||||||||
(b) | Largely issued by above-investment-grade institutions in the financial services sector. | ||||||||||||||||||||||||
(c) | Involving U.S. securities. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Inventories | ' | ||||||||
The following table provides the components of Inventories: | |||||||||
(MILLIONS OF DOLLARS) | March 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 2,526 | $ | 2,216 | |||||
Work-in-process | 3,013 | 3,445 | |||||||
Raw materials and supplies | 527 | 505 | |||||||
Inventories | $ | 6,066 | $ | 6,166 | |||||
Noncurrent inventories not included above(a) | $ | 468 | $ | 463 | |||||
(a) | Included in Other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Identifiable intangible assets as a percentage of total identifiable intangible assets less accumulated amortization, by segment [Table Text Block] | ' | ||||||||||||||||||||||||
Our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible assets, less accumulated amortization: | |||||||||||||||||||||||||
March 30, 2014 | |||||||||||||||||||||||||
GIP | VOC | GEP | WRD(a) | ||||||||||||||||||||||
Developed technology rights | 34 | % | 32 | % | 34 | % | — | % | |||||||||||||||||
Brands, finite-lived | — | % | 75 | % | 25 | % | — | % | |||||||||||||||||
Brands, indefinite-lived | — | % | 69 | % | 31 | % | — | % | |||||||||||||||||
In-process research and development | 9 | % | 58 | % | 9 | % | 24 | % | |||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||
The following table provides the components of and changes in the carrying amount of Goodwill: | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | GIP | VOC | GEP | To be Allocated(a) | Total | ||||||||||||||||||||
Balance, December 31, 2013 | $ | $ | $ | $ | 42,519 | $ | 42,519 | ||||||||||||||||||
Additions | — | — | |||||||||||||||||||||||
Other(b) | (52 | ) | (52 | ) | |||||||||||||||||||||
Balance, March 30, 2014 | $ | $ | $ | $ | 42,467 | $ | 42,467 | ||||||||||||||||||
(a) | The amount to be allocated includes the goodwill associated with our former biopharmaceutical operating segments (see above), for which the allocation to our new reporting units, and, as a result, to the new operating segments, is pending. | ||||||||||||||||||||||||
(b) | Primarily reflects the impact of foreign exchange. | ||||||||||||||||||||||||
Schedule of Finite Lived And Indefinite Lived Intangible Assets | ' | ||||||||||||||||||||||||
The following table provides the components of Identifiable intangible assets: | |||||||||||||||||||||||||
March 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Gross | Accumulated | Identifiable | Gross | Accumulated | Identifiable | |||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Amount | Assets, less | Amount | Assets, less | ||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||
Developed technology rights | $ | 72,064 | $ | (42,676 | ) | $ | 29,388 | $ | 72,038 | $ | (41,541 | ) | $ | 30,497 | |||||||||||
Brands | 1,742 | (793 | ) | 949 | 1,743 | (773 | ) | 970 | |||||||||||||||||
Licensing agreements and other | 903 | (810 | ) | 93 | 896 | (805 | ) | 91 | |||||||||||||||||
74,709 | (44,279 | ) | 30,430 | 74,677 | (43,119 | ) | 31,558 | ||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||
Brands and other | 7,363 | 7,363 | 7,384 | 7,384 | |||||||||||||||||||||
In-process research and development | 329 | 329 | 443 | 443 | |||||||||||||||||||||
7,692 | 7,692 | 7,827 | 7,827 | ||||||||||||||||||||||
Identifiable intangible assets(a) | $ | 82,401 | $ | (44,279 | ) | $ | 38,122 | $ | 82,504 | $ | (43,119 | ) | $ | 39,385 | |||||||||||
(a) | The decrease is primarily related to amortization and asset impairment charges. For information about impairments of intangible assets, see Note 4. Other Deductions—Net. |
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit cost (including, in 2013, costs reported as part of discontinued operations): | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
U.S. | U.S. | International(c) | Postretirement | ||||||||||||||||||||||||||||||
Qualified(a) | Supplemental | Plans | |||||||||||||||||||||||||||||||
(Non-Qualified)(b) | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | March 30, | March 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||||||||||
Service cost | $ | 64 | $ | 77 | $ | 5 | $ | 7 | $ | 52 | $ | 56 | $ | 14 | $ | 16 | |||||||||||||||||
Interest cost | 175 | 168 | 15 | 14 | 100 | 97 | 42 | 42 | |||||||||||||||||||||||||
Expected return on plan assets | (263 | ) | (253 | ) | — | — | (114 | ) | (104 | ) | (16 | ) | (14 | ) | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Actuarial losses | 16 | 90 | 7 | 13 | 25 | 37 | 1 | 11 | |||||||||||||||||||||||||
Prior service credits | (2 | ) | (2 | ) | — | (1 | ) | (2 | ) | (2 | ) | (14 | ) | (11 | ) | ||||||||||||||||||
Curtailments | 2 | (1 | ) | — | — | (1 | ) | (1 | ) | (3 | ) | (7 | ) | ||||||||||||||||||||
Settlements | 9 | 30 | 11 | 22 | 1 | 4 | — | — | |||||||||||||||||||||||||
Special termination benefits | — | — | — | — | 2 | — | — | — | |||||||||||||||||||||||||
$ | 1 | $ | 109 | $ | 38 | $ | 55 | $ | 63 | $ | 87 | $ | 24 | $ | 37 | ||||||||||||||||||
(a) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. qualified pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation (which reduced the amount of deferred actuarial losses), lower service cost resulting from cost-reduction initiatives, lower settlement activity and greater expected return on plan assets resulting from an increased plan asset base, partially offset by higher interest costs resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | ||||||||||||||||||||||||||||||||
(b) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. supplemental (non-qualified) pension plans was primarily driven by lower settlement activity and the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | ||||||||||||||||||||||||||||||||
(c) | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our international pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from increases, in 2013, in the discount rates used to determine the benefit obligations and greater expected return on plan assets resulting from an increased plan asset base. | ||||||||||||||||||||||||||||||||
Schedule of Employer Contributions to Pension and Postretirement Plans | ' | ||||||||||||||||||||||||||||||||
As of and for the three months ended March 30, 2014, we contributed and expect to contribute from our general assets as follows: | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | U.S. Qualified | U.S. Supplemental (Non-Qualified) | International | Postretirement Plans | |||||||||||||||||||||||||||||
Contributions from our general assets for the three months ended March 30, 2014 | $ | — | $ | 83 | $ | 87 | $ | 55 | |||||||||||||||||||||||||
Expected contributions from our general assets during 2014(a) | $ | 6 | $ | 176 | $ | 310 | $ | 239 | |||||||||||||||||||||||||
(a) | Contributions expected to be made for 2014 are inclusive of amounts contributed during the three months ended March 30, 2014. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings_Per_Common_Share_Attr1
Earnings Per Common Share Attributable to Common Shareholders (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Basic and Diluted Earning Per Share | ' | ||||||||
The following table provides the detailed calculation of Earnings per common share (EPS): | |||||||||
Three Months Ended | |||||||||
(IN MILLIONS) | March 30, | March 31, | |||||||
2014 | 2013 | ||||||||
EPS Numerator––Basic | |||||||||
Income from continuing operations | $ | 2,265 | $ | 2,616 | |||||
Less: Net income attributable to noncontrolling interests | 9 | 9 | |||||||
Income from continuing operations attributable to Pfizer Inc. | 2,256 | 2,607 | |||||||
Less: Preferred stock dividends––net of tax | — | — | |||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,256 | 2,607 | |||||||
Discontinued operations––net of tax | 73 | 149 | |||||||
Less: Discontinued operations––net of tax, attributable to noncontrolling interests | — | 6 | |||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 73 | 143 | |||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 2,329 | $ | 2,750 | |||||
EPS Numerator––Diluted | |||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,256 | $ | 2,607 | |||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 73 | 143 | |||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | $ | 2,329 | $ | 2,750 | |||||
EPS Denominator | |||||||||
Weighted-average number of common shares outstanding––Basic | 6,389 | 7,187 | |||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 87 | 82 | |||||||
Weighted-average number of common shares outstanding––Diluted | 6,476 | 7,269 | |||||||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | 97 | |||||||
(a) | These common stock equivalents were outstanding for the three months ended March 30, 2014 and March 31, 2013, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Segment_Geographic_and_Other_R1
Segment, Geographic and Other Revenue Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Selected Income Statement Information by Segment | ' | ||||||||||||||||
The following table provides selected income statement information by reportable segment: | |||||||||||||||||
Revenues | Earnings(a) | ||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | March 30, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Three Months Ended | |||||||||||||||||
Reportable Segments: | |||||||||||||||||
Global Innovative Pharmaceutical (GIP) | $ | 3,076 | $ | 3,306 | $ | 1,767 | $ | 1,895 | |||||||||
Global Vaccines, Oncology and Consumer Healthcare (VOC) | 2,174 | 2,190 | 1,057 | 995 | |||||||||||||
Global Established Pharmaceutical (GEP) | 5,990 | 6,861 | 4,049 | 4,452 | |||||||||||||
Total reportable segments | 11,240 | 12,357 | 6,873 | 7,342 | |||||||||||||
Other business activities(b) | 56 | 53 | (667 | ) | (660 | ) | |||||||||||
Reconciling Items: | |||||||||||||||||
Corporate(c) | — | — | (1,200 | ) | (1,334 | ) | |||||||||||
Purchase accounting adjustments(c) | — | — | (1,008 | ) | (1,219 | ) | |||||||||||
Acquisition-related costs(c) | — | — | (30 | ) | (90 | ) | |||||||||||
Certain significant items(d) | 57 | — | (1,016 | ) | (88 | ) | |||||||||||
Other unallocated | — | — | (105 | ) | (226 | ) | |||||||||||
$ | 11,353 | $ | 12,410 | $ | 2,847 | $ | 3,725 | ||||||||||
(a) | Income from continuing operations before provision for taxes on income. | ||||||||||||||||
(b) | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. | ||||||||||||||||
(c) | As described above in the "Other Costs and Business Activities" section. | ||||||||||||||||
(d) | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. | ||||||||||||||||
For Revenues in the first quarter of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. | |||||||||||||||||
For Earnings in the first quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $8 million, (ii) charges for certain legal matters of $694 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $134 million and (v) other charges of $82 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. | |||||||||||||||||
For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $215 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $394 million, (iv) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $18 million and (vi) other charges of $38 million. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. | |||||||||||||||||
Schedule of Revenues by Geographic Region | ' | ||||||||||||||||
The following table provides revenues by geographic area: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | March 30, | March 31, | % Change | ||||||||||||||
2014 | 2013 | ||||||||||||||||
United States | $ | 4,275 | $ | 4,914 | (13 | ) | |||||||||||
Developed Europe(a) | 2,795 | 2,804 | — | ||||||||||||||
Developed Rest of World(b) | 1,728 | 2,032 | (15 | ) | |||||||||||||
Emerging Markets(c) | 2,555 | 2,660 | (4 | ) | |||||||||||||
Revenues | $ | 11,353 | $ | 12,410 | (9 | ) | |||||||||||
(a) | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.2 billion in the first quarter of 2014 and $2.1 billion in the first quarter of 2013. | ||||||||||||||||
(b) | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | ||||||||||||||||
(c) | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | ||||||||||||||||
Schedule of Significant Product Revenues | ' | ||||||||||||||||
The following table provides detailed revenue information: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(MILLIONS OF DOLLARS) | Business(a) | March 30, | March 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||||
Biopharmaceutical revenues: | |||||||||||||||||
Lyrica(b) | GIP/GEP | $ | 1,150 | $ | 1,066 | ||||||||||||
Prevnar family | V | 927 | 927 | ||||||||||||||
Enbrel (Outside the U.S. & Canada) | GIP | 914 | 877 | ||||||||||||||
Celebrex | GEP | 624 | 653 | ||||||||||||||
Lipitor | GEP | 457 | 626 | ||||||||||||||
Viagra(c) | GEP/GIP | 374 | 461 | ||||||||||||||
Zyvox | GEP | 321 | 342 | ||||||||||||||
Norvasc | GEP | 278 | 301 | ||||||||||||||
Sutent | O | 268 | 302 | ||||||||||||||
Premarin family | GEP | 248 | 244 | ||||||||||||||
BeneFIX | GIP | 201 | 189 | ||||||||||||||
Vfend | GEP | 177 | 187 | ||||||||||||||
Pristiq | GEP | 172 | 166 | ||||||||||||||
Genotropin | GIP | 166 | 189 | ||||||||||||||
Chantix/Champix | GIP | 147 | 166 | ||||||||||||||
Refacto AF/Xyntha | GIP | 145 | 139 | ||||||||||||||
Xalatan/Xalacom | GEP | 119 | 147 | ||||||||||||||
Medrol | GEP | 106 | 113 | ||||||||||||||
Zoloft | GEP | 101 | 116 | ||||||||||||||
Zithromax/Zmax | GEP | 92 | 116 | ||||||||||||||
Sulperazon | GEP | 88 | 71 | ||||||||||||||
Inlyta | O | 88 | 63 | ||||||||||||||
Xalkori | O | 88 | 53 | ||||||||||||||
Rapamune | GIP | 88 | 84 | ||||||||||||||
Relpax | GEP | 87 | 86 | ||||||||||||||
Effexor | GEP | 82 | 105 | ||||||||||||||
Fragmin | GEP | 81 | 86 | ||||||||||||||
Revatio | GEP | 76 | 72 | ||||||||||||||
Zosyn/Tazocin | GEP | 74 | 87 | ||||||||||||||
Tygacil | GEP | 74 | 87 | ||||||||||||||
Cardura | GEP | 66 | 76 | ||||||||||||||
Toviaz | GIP | 63 | 52 | ||||||||||||||
EpiPen | GEP | 63 | 72 | ||||||||||||||
Inspra | GEP | 61 | 52 | ||||||||||||||
Xanax/Xanax XR | GEP | 59 | 70 | ||||||||||||||
Depo-Provera | GEP | 53 | 37 | ||||||||||||||
Diflucan | GEP | 52 | 45 | ||||||||||||||
Xeljanz | GIP | 52 | 11 | ||||||||||||||
Caduet | GEP | 50 | 56 | ||||||||||||||
Somavert | GIP | 50 | 48 | ||||||||||||||
Alliance revenues(d) | GEP/GIP | 213 | 747 | ||||||||||||||
All other GIP | GIP | 145 | 166 | ||||||||||||||
All other GEP | GEP | 1,697 | 1,959 | ||||||||||||||
All other V/O | V/O | 42 | 34 | ||||||||||||||
Total biopharmaceutical revenues | 10,479 | 11,546 | |||||||||||||||
Other revenues: | |||||||||||||||||
Consumer Healthcare | C | 761 | 811 | ||||||||||||||
Other(e) | 113 | 53 | |||||||||||||||
Revenues | $ | 11,353 | $ | 12,410 | |||||||||||||
(a) | Indicates the business to which the revenues relate. GIP =he Global Innovative Pharmaceutical segment; V=he Global Vaccines | ||||||||||||||||
business; O=he Global Oncology business; C =he Consumer Healthcare business; and GEP =he Global Established Pharmaceutical segment. | |||||||||||||||||
(b) | Lyrica revenues from all of Europe are included in GEP. All other Lyrica revenues are included in GIP. | ||||||||||||||||
(c) | Viagra revenues from the U.S. and Canada are included in GIP. All other Viagra revenues are included in GEP. | ||||||||||||||||
(d) | Includes Enbrel (GIP, in the U.S. and Canada through October 31, 2013), Spiriva (GEP), Rebif (GIP), Aricept (GEP) and Eliquis (GIP). | ||||||||||||||||
(e) | Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes, in 2014, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (IPO [Member], Zoetis [Member]) | 0 Months Ended |
In Thousands, unless otherwise specified | Feb. 06, 2013 |
IPO [Member] | Zoetis [Member] | ' |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' |
Shares offered in IPO of subsidiary | 99,015 |
Percentage offered in IPO | 19.80% |
Divestiture_Narrative_Detail
Divestiture - Narrative (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Share data in Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Feb. 06, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 24, 2013 | Jan. 28, 2013 | Feb. 06, 2013 | Jan. 28, 2013 | ||
Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | Zoetis [Member] | IPO [Member] | Senior Notes [Member] | |||||
Zoetis [Member] | Zoetis [Member] | |||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Shares offered in IPO of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 19.80% | ' | ||
Percentage offered in exchange offer | ' | ' | ' | ' | ' | ' | 80.20% | ' | ' | ' | ||
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,650,000,000 | ||
Senior notes received by parent during formation of subsidiary | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ||
Initial public offering, long-term debt assumed, parent | 0 | [1] | 992,000,000 | [1] | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' |
Initial public offering, cash proceeds received, parent | ' | ' | ' | ' | ' | ' | ' | 2,600,000,000 | ' | 2,650,000,000 | ||
Subsidiary or equity method investee, cumulative number of shares issued for all transactions | ' | ' | ' | ' | ' | ' | ' | ' | 99,015 | ' | ||
Repayments of Short-term Debt | 0 | [1] | 2,479,000,000 | [1] | ' | ' | ' | ' | ' | ' | 2,500,000,000 | ' |
Proceeds from issuance of common stock | ' | ' | $2,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
[1] | See Note 2A. Divestiture and Equity-Method Investments: Divestiture. |
Divestiture_Discontinued_Opera
Divestiture - Discontinued Operations - Net of Tax (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ||
Revenues | $0 | $1,089 | ||
Pre-tax income from discontinued operations | 5 | 200 | ||
Provision for taxes on income(a) | 0 | [1] | 51 | [1] |
Deferred tax expense (benefit) | 345 | 920 | ||
Income from discontinued operations––net of tax | 5 | 149 | ||
Pre-tax gain on disposal of discontinued operations | 64 | 0 | ||
Benefit for taxes on income | -4 | 0 | ||
Gain on disposal of discontinued operations––net of tax(b) | 68 | [2] | 0 | [2] |
Discontinued operations––net of tax | 73 | 149 | ||
Discontinued Operations [Member] | ' | ' | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ||
Deferred tax expense (benefit) | ' | $7 | ||
[1] | Includes a deferred tax expense of $7 million for the three months ended March 31, 2013. | |||
[2] | For the three months ended March 30, 2014, represents post-close adjustments. |
Divestiture_and_EquityMethod_I2
Divestiture and Equity-Method Investments Equity-Method Investments (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 06, 2012 | Mar. 30, 2014 | Mar. 30, 2014 | Sep. 06, 2012 | Apr. 01, 2014 | Apr. 01, 2014 | Mar. 31, 2013 | ||
Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | ViiV Healthcare Limited [Member] | Glaxosmithkline plc [Member] | Zhejiang Hisun [Member] | Equity Method Investments [Member] | Equity Method Investments [Member] | Indirect retained Interest [Member] | |||||
ViiV Healthcare Limited [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | ViiV Healthcare Limited [Member] | Glaxosmithkline plc [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | ||||||||
ViiV Healthcare Limited [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
(Gain) loss associated with the transfer of certain product rights to an equity-method investment | $0 | [1] | ($490) | [1] | $490 | ' | ' | ' | ' | ' | ' | $240 |
Equity method investment, ownership percentage | ' | ' | 49.00% | 49.00% | 12.60% | 77.40% | 51.00% | 11.70% | 78.30% | ' | ||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | ' | ' | ' | ' | $36 | ' | ' | ' | ' | ' | ||
[1] | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. |
Restructuring_Charges_and_Othe2
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | $3,200 | ' | ||
Restructuring charges(a): | ' | ' | ||
Employee terminations | 30 | [1] | -21 | [1] |
Asset impairments | 6 | [1] | 103 | [1] |
Exit costs | 4 | [1] | 13 | [1] |
Total restructuring charges | 40 | [1] | 95 | [1] |
Integration costs(b) | 18 | [2] | 36 | [2] |
Restructuring charges and certain acquisition-related costs | 58 | 131 | ||
Total additional depreciation––asset restructuring | 74 | [3] | 135 | [3] |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ||
Total implementation costs | 32 | [4] | 39 | [4] |
Total costs associated with acquisitions and cost-reduction/productivity initiatives | 164 | 305 | ||
Cost of Sales [Member] | ' | ' | ||
Restructuring charges(a): | ' | ' | ||
Total additional depreciation––asset restructuring | 74 | [3] | 33 | [3] |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ||
Total implementation costs | 6 | [4] | 6 | [4] |
Selling, General and Administrative Expenses [Member] | ' | ' | ||
Restructuring charges(a): | ' | ' | ||
Total additional depreciation––asset restructuring | 0 | [3] | 11 | [3] |
Selling Informational And Administrative Expenses [Member] | ' | ' | ||
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ||
Total implementation costs | 15 | [4] | 31 | [4] |
Research and Development Expense [Member] | ' | ' | ||
Restructuring charges(a): | ' | ' | ||
Total additional depreciation––asset restructuring | 0 | [3] | 91 | [3] |
Implementation costs recorded in our condensed consolidated statements of income as follows(d): | ' | ' | ||
Total implementation costs | 11 | [4] | 2 | [4] |
Acquisition-related Costs [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | 450 | ' | ||
Business Restructuring Reserves [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | 350 | ' | ||
Commercial Real Estate [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | 900 | ' | ||
Facility Closing [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | 1,500 | ' | ||
Restructuring Charges [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring and Related Cost, Expected Cost | $800 | ' | ||
[1] | In the three months ended March 30, 2014, Employee terminations represent the expected reduction of the workforce by approximately 200 employees, mainly in manufacturing and sales.The restructuring charges in 2014 are associated with the following:•For the three months ended March 30, 2014, the Global Innovative Pharmaceutical segment (GIP) ($2 million), the Global Established Pharmaceutical segment (GEP) ($7 million), Worldwide Research and Development and Medical ($1 million), manufacturing operations ($26 million) and Corporate ($4 million).The restructuring charges in 2013 are associated with the following:•For the three months ended March 31, 2013, total operating segments ($13 million), Worldwide Research and Development and Medical ($2 million), manufacturing operations ($3 million) and Corporate ($77 million). In 2014, we revised our operating segments and are unable to identify these prior-period restructuring charges to the new individual segments. | |||
[2] | Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. | |||
[3] | Additional depreciation––asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions. | |||
[4] | Implementation costs represent external, incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives. |
Restructuring_Charges_and_Othe3
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (Parenthetical) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Employee | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Cost Reduction Initiatives And Acquisition Costs | $164 | $305 | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 200 | ' | ||
Restructuring Charges | 40 | [1] | 95 | [1] |
Global Innovative Pharmaceutical [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | 2 | ' | ||
Global Established Pharmaceutical [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | 7 | ' | ||
Research and Development Expense [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | 1 | 2 | ||
Manufacturing Operations [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | 26 | 3 | ||
Corporate, Non-Segment [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | 4 | 77 | ||
Commercial operations [Member] | ' | ' | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ||
Restructuring Charges | ' | $13 | ||
[1] | In the three months ended March 30, 2014, Employee terminations represent the expected reduction of the workforce by approximately 200 employees, mainly in manufacturing and sales.The restructuring charges in 2014 are associated with the following:•For the three months ended March 30, 2014, the Global Innovative Pharmaceutical segment (GIP) ($2 million), the Global Established Pharmaceutical segment (GEP) ($7 million), Worldwide Research and Development and Medical ($1 million), manufacturing operations ($26 million) and Corporate ($4 million).The restructuring charges in 2013 are associated with the following:•For the three months ended March 31, 2013, total operating segments ($13 million), Worldwide Research and Development and Medical ($2 million), manufacturing operations ($3 million) and Corporate ($77 million). In 2014, we revised our operating segments and are unable to identify these prior-period restructuring charges to the new individual segments. |
Restructuring_Charges_and_Othe4
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2013(a) | $1,779 | [1] |
Provision | 40 | |
Utilization and other(b) | -146 | [2] |
Balance, March 30, 2014(c) | 1,673 | [3] |
Employee Termination Costs [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2013(a) | 1,685 | [1] |
Provision | 30 | |
Utilization and other(b) | -115 | [2] |
Balance, March 30, 2014(c) | 1,600 | [3] |
Asset Impairments [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2013(a) | 0 | [1] |
Provision | 6 | |
Utilization and other(b) | -6 | [2] |
Balance, March 30, 2014(c) | 0 | [3] |
Exit Costs [Member] | ' | |
Restructuring Reserve [Roll Forward] | ' | |
Balance, December 31, 2013(a) | 94 | [1] |
Provision | 4 | |
Utilization and other(b) | -25 | [2] |
Balance, March 30, 2014(c) | $73 | [3] |
[1] | Included in Other current liabilities ($1.0 billion) and Other noncurrent liabilities ($767 million). | |
[2] | Includes adjustments for foreign currency translation. | |
[3] | Included in Other current liabilities ($968 million) and Other noncurrent liabilities ($705 million). |
Restructuring_Charges_and_Othe5
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives - Restructuring Accruals (Parenthetical) (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Current Liabilities [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Other current liabilities | $968 | $1,000 |
Other Noncurrent Liabilities [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Other noncurrent liabilities | $705 | $767 |
Other_IncomeDeductions_Net_Det
Other (Income)/Deductions - Net (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Other Income and Expenses [Abstract] | ' | ' | ||
Interest income(a) | ($92) | [1] | ($95) | [1] |
Interest expense(a) | 321 | [1] | 371 | [1] |
Net interest expense | 229 | 276 | ||
Royalty-related income(b) | -248 | [2] | -63 | [2] |
Certain legal matters, net(c) | 694 | [3] | -83 | [3] |
(Gain) loss associated with the transfer of certain product rights to an equity-method investment | 0 | [4] | -490 | [4] |
Net gains on asset disposals(e) | -181 | [5] | -26 | [5] |
Certain asset impairments and related charges(f) | 115 | [6] | 398 | [6] |
Costs associated with the Zoetis IPO(g) | 0 | [7] | 18 | [7] |
Other, net | 14 | 115 | ||
Other deductions––net | $623 | $145 | ||
[1] | Interest income decreased in the first three months of 2014 due to lower cash equivalents and investment balances and lower investment returns. Interest expense decreased in the first three months of 2014 primarily due to the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities. | |||
[2] | Royalty-related income increased in 2014 due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period. | |||
[3] | In the first quarter of 2014, includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter. In the first quarter of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. | |||
[4] | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | |||
[5] | In the first quarter of 2014, primarily includes gains on sales of product rights (approximately $70 million) and gains on sales of investments in equity securities (approximately $95 million). | |||
[6] | In the first quarter of 2014, includes an intangible asset impairment charge of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first quarter of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program. In the first quarter of 2013, includes an intangible asset impairment charge of $394 million, all of which relates to developed technology rights for use in the development of bone and cartilage. The intangible asset impairment charge for 2013 is associated with the Global Innovative Pharmaceutical segment and reflects, among other things, updated commercial forecasts. | |||
[7] | Costs incurred in connection with the IPO of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture. |
Other_IncomeDeductions_Net_Par
Other (Income)/Deductions - Net (Parenthetical) (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 31, 2013 | Sep. 06, 2012 | Feb. 06, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 31, 2013 | |||
Neurontin [Member] | Effexor [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Hisun Pfizer Pharmaceuticals Co. Ltd [Member] | Zoetis [Member] | In Process Research and Development [Member] | In Process Research and Development [Member] | Insurance Settlement [Member] | Distribution Rights [Member] | Equity Securities [Member] | Developed Technology Rights [Member] | ||||||
IPO [Member] | Research and Development Expense [Member] | Global Innovative Pharmaceutical [Member] | ||||||||||||||
Operating and Other Costs and Expenses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gain on Sale of Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $70 | $95 | ' | |||
Certain legal matters, net(c) | 694 | [1] | -83 | [1] | 620 | 50 | ' | ' | ' | ' | ' | -80 | ' | ' | ' | |
Intangible asset impairments | $114 | ' | ' | ' | ' | ' | ' | $114 | [2] | $114 | ' | ' | ' | $394 | ||
Equity method investment, ownership percentage | ' | ' | ' | ' | 49.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' | |||
Percentage offered in IPO | ' | ' | ' | ' | ' | ' | 19.80% | ' | ' | ' | ' | ' | ' | |||
[1] | In the first quarter of 2014, includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter. In the first quarter of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. | |||||||||||||||
[2] | eflects intangible assets written down to fair value in the first three months of 2014. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Other_IncomeDeductions_Net_Add
Other (Income)/Deductions - Net - Additional Information about Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Impairment charges | $114 | |
Intangible assets––IPR&D(b) | 79 | [1] |
In Process Research and Development [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Impairment charges | 114 | [2] |
Intangible assets––IPR&D(b) | 79 | [1],[2] |
Fair Value, Inputs, Level 1 [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | 0 | [1] |
Fair Value, Inputs, Level 1 [Member] | In Process Research and Development [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | 0 | [1],[2] |
Fair Value, Inputs, Level 2 [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | 0 | [1] |
Fair Value, Inputs, Level 2 [Member] | In Process Research and Development [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | 0 | [1],[2] |
Fair Value, Inputs, Level 3 [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | 79 | [1] |
Fair Value, Inputs, Level 3 [Member] | In Process Research and Development [Member] | ' | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | |
Intangible assets––IPR&D(b) | $79 | [1],[2] |
[1] | The fair value amount is presented as of the date of impairment, as this asset is not measured at fair value on a recurring basis. See also Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. | |
[2] | eflects intangible assets written down to fair value in the first three months of 2014. Fair value was determined using the income approach, specifically the multi-period excess earnings method, also known as the discounted cash flow method. We started with a forecast of all the expected net cash flows associated with the asset and then we applied an asset-specific discount rate to arrive at a net present value amount. Some of the more significant estimates and assumptions inherent in this approach include: the amount and timing of the projected net cash flows, which includes the expected impact of competitive, legal and/or regulatory forces on the product and the impact of technological risk associated with IPR&D assets; the discount rate, which seeks to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. |
Tax_Matters_Narrative_Detail
Tax Matters - Narrative (Detail) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate for income from continuing operations | 20.40% | 29.80% |
Tax_Matters_Detail
Tax Matters (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ' | ' | ||
Foreign currency translation adjustments(a) | ($7) | [1] | $71 | [1] |
Unrealized holding losses on derivative financial instruments | -17 | -155 | ||
Reclassification adjustments for realized (gains)/losses | -1 | 167 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Total | -18 | 12 | ||
Unrealized holding gains on available-for-sale securities | 27 | 11 | ||
Reclassification adjustments for realized gains | -29 | -25 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Total | -2 | -14 | ||
Benefit plans: actuarial gains, net | 1 | 6 | ||
Reclassification adjustments related to amortization | 16 | 54 | ||
Reclassification adjustments related to settlements, net | 8 | 20 | ||
Foreign currency translation adjustments and other | -12 | 37 | ||
Other Comprehensive Income Defined Benefit Plans Actuarial Gain Loss Tax Effect Period Decrease Increase | 13 | 117 | ||
Benefit plans: prior service costs and other | 0 | -1 | ||
Reclassification adjustments related to amortization | -7 | -6 | ||
Reclassification adjustments related to curtailments, net | -1 | -3 | ||
Other | 5 | 0 | ||
Other Comprehensive Income Defined Benefit Plan Net Prior Service Cost Credit Tax Effect Period Decrease Increase | -3 | -10 | ||
Tax provision/(benefit) on other comprehensive loss | ($17) | [2] | $176 | [2] |
[1] | Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. | |||
[2] | See Note 5C. Tax Matters: Taxes on Items of Other Comprehensive Loss. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | ||||||
Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Net Gain (Loss) From Derivative Financial Instruments [Member] | Accumulated Net Gain (Loss) From Derivative Financial Instruments [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment, Actuarial Gains / (Losses) [Member] | Accumulated Defined Benefit Plans Adjustment, Actuarial Gains / (Losses) [Member] | Accumulated Defined Benefit Plans Adjustment, Prior Service (Costs) / Credits and Other [Member] | Accumulated Defined Benefit Plans Adjustment, Prior Service (Costs) / Credits and Other [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Available-for-sale Securities [Member] | Accumulated Net Gain (Loss) From Derivative Financial Instruments [Member] | Accumulated Translation Adjustment [Member] | Prior Service Credit And Cost [Member] | |||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Balance, December 31, 2013 | ($3,271) | ' | ($718) | ($590) | $51 | $79 | ' | ($3,177) | ($3,223) | $293 | $313 | $161 | $150 | ' | ' | ' | ' | ||||||
Other comprehensive income/(loss)(a) | -121 | -205 | ' | ' | ' | ' | 46 | [1] | ' | ' | ' | ' | ' | ' | 11 | [1] | -28 | [1] | -128 | [1] | -20 | [1] | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -119 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Balance, March 30, 2014 | ($3,390) | ' | ($718) | ($590) | $51 | $79 | ' | ($3,177) | ($3,223) | $293 | $313 | $161 | $150 | ' | ' | ' | ' | ||||||
[1] | Amounts do not include foreign currency translation loss of $2 million attributable to noncontrolling interests for the first three months of 2014. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Foreign currency translation adjustments attributable to noncontrolling interests | ($2) |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $77.50 |
Financial_Instruments_Assets_a
Financial Instruments Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Other selected financial assets | ' | ' | ||
Held-to-maturity debt securities, carried at amortized cost(c), (e) | $8,501 | [1],[2] | $9,139 | [1],[2] |
Private equity securities, carried at equity-method or at cost(e), (f) | 2,276 | [2],[3] | 2,270 | [2],[3] |
Total | 10,777 | 11,409 | ||
Total selected financial assets | 49,452 | 49,246 | ||
Other financial liabilities(h) | ' | ' | ||
Short-term borrowings, carried at historical proceeds, as adjusted(e) | 9,319 | [2],[4] | 6,027 | [2],[4] |
Long-term debt, carried at historical proceeds, as adjusted(i), (j) | 27,649 | [4],[5],[6] | 30,462 | [4],[5],[6] |
Total | 36,968 | [4] | 36,489 | [4] |
Total selected financial liabilities | 37,455 | 37,119 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 38,675 | [7] | 37,837 | [7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(g): | 487 | [7],[8] | 630 | [7],[8] |
Fair Value, Measurements, Recurring [Member] | Trading securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 103 | [7],[9] | 126 | [7],[9] |
Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(d): | 438 | [10],[7] | 468 | [10],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(g): | 187 | [7],[8] | 301 | [7],[8] |
Fair Value, Measurements, Recurring [Member] | Foreign currency swap [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(d): | 953 | [10],[7] | 871 | [10],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(g): | 116 | [7],[8] | 110 | [7],[8] |
Fair Value, Measurements, Recurring [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial instruments in receivable positions(d): | 49 | [10],[7] | 172 | [10],[7] |
Financial liabilities measured at fair value on a recurring basis(a) | ' | ' | ||
Derivative financial instruments in a liability position(g): | 184 | [7],[8] | 219 | [7],[8] |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Available for-sale debt securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 35,693 | [1],[7] | 34,899 | [1],[7] |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Available for-sale debt securities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | 977 | [7] | 945 | [7] |
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Available-for-sale equity securities, excluding money market funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Financial assets measured at fair value on a recurring basis | $462 | [1],[7] | $356 | [1],[7] |
[1] | Gross unrealized gains and losses are not significant. | |||
[2] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 30, 2014 or December 31, 2013. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs. | |||
[3] | Our private equity securities represent investments in the life sciences sector. | |||
[4] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | |||
[5] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | |||
[6] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 | |||
[7] | We use a market approach in valuing financial instruments on a recurring basis. For additional information, see Note 1C. Basis of Presentation and Significant Accounting Policies: Fair Value. All of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except less than 1% that use Level 1 inputs. | |||
[8] | Designated as hedging instruments, except for certain foreign currency contracts used as offsets; namely, foreign currency swaps with fair values of $78 million and foreign currency forward-exchange contracts with fair values of $55 million as of March 30, 2014; and, foreign currency swaps with fair values of $76 million and foreign currency forward-exchange contracts with fair values of $77 million as of December 31, 2013. | |||
[9] | Trading securities are held in trust for legacy business acquisition severance benefits. | |||
[10] | Designated as hedging instruments, except for certain contracts used as offsets; namely, foreign currency swaps with fair values of $26 million and foreign currency forward-exchange contracts with fair values of $30 million as of March 30, 2014; and, interest rate swaps with fair values of $38 million, foreign currency swaps with fair values of $30 million and foreign currency forward-exchange contracts with fair values of $66 million as of December 31, 2013. |
Financial_Instruments_Assets_a1
Financial Instruments Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative, Net Liability Position, Aggregate Fair Value | $192 | ' | ||
Posted collateral | 225 | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Long-term debt, carried at historical proceeds, as adjusted(i), (j) | 27,649 | [1],[2],[3] | 30,462 | [1],[2],[3] |
Fair value of long-term debt | 32,600 | 35,100 | ||
Maximum [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Percentage of financial assets and liabilities measured at fair value inputs Level 1 and Level 3 inputs | 1.00% | ' | ||
Not Designated as Hedging Instrument [Member] | Currency Swap [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Instruments used as offsets (assets) | 26 | 30 | ||
Instruments used as offsets (liabilities) | 78 | 76 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Instruments used as offsets (assets) | 30 | 66 | ||
Instruments used as offsets (liabilities) | 55 | 77 | ||
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Instruments used as offsets (assets) | ' | 38 | ||
Foreign Currency Long Term Debt [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Footnotes to selected financial assets and liabilities: | ' | ' | ||
Fair value of long-term debt | $659 | $651 | ||
[1] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | |||
[2] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | |||
[3] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 |
Financial_Instruments_by_Balan
Financial Instruments by Balance Sheet Grouping (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Short-term investments | $31,019 | $30,225 | ||
Long-term investments | 15,822 | 16,406 | ||
Other current assets(a) | 3,473 | 3,689 | ||
Other noncurrent assets(b) | 3,759 | 3,596 | ||
Total | 49,452 | 49,246 | ||
Liabilities | ' | ' | ||
Short-term borrowings, including current portion of long-term debt | 9,319 | [1],[2] | 6,027 | [1],[2] |
Other current liabilities(c) | 10,315 | 9,972 | ||
Long-term debt | 27,649 | [2],[3],[4] | 30,462 | [2],[3],[4] |
Other noncurrent liabilities | 4,416 | 4,767 | ||
Total selected financial liabilities | 37,455 | 37,119 | ||
Selected Financial Assets and Liabilities [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash and cash equivalents | 1,171 | 1,104 | ||
Short-term investments | 31,019 | 30,225 | ||
Long-term investments | 15,822 | 16,406 | ||
Other current assets(a) | 132 | [5] | 286 | [5] |
Other noncurrent assets(b) | 1,308 | [6] | 1,225 | [6] |
Selected Financial Assets and Liabilities [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Short-term borrowings, including current portion of long-term debt | 9,319 | 6,027 | ||
Other current liabilities(c) | 275 | [7] | 303 | [7] |
Long-term debt | 27,649 | 30,462 | ||
Other noncurrent liabilities | $212 | [8] | $327 | [8] |
[1] | The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities at cost and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 30, 2014 or December 31, 2013. The fair value measurements of our held-to-maturity debt securities and our short-term borrowings are based on Level 2 inputs, using a market approach. The fair value measurements of our private equity securities at cost are based on Level 3 inputs. | |||
[2] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | |||
[3] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | |||
[4] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 | |||
[5] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($68 million), foreign currency swaps ($15 million) and foreign currency forward-exchange contracts ($49 million) and, as of December 31, 2013, include interest rate swaps ($90 million), foreign currency swaps ($24 million) and foreign currency forward-exchange contracts ($172 million). | |||
[6] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($370 million) and foreign currency swaps ($938 million) and, as of December 31, 2013, include interest rate swaps ($378 million) and foreign currency swaps ($847 million). | |||
[7] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($1 million), foreign currency swaps ($90 million) and foreign currency forward-exchange contracts ($184 million) and, as of December 31, 2013, include foreign currency swaps ($84 million) and foreign currency forward-exchange contracts ($219 million). | |||
[8] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($186 million) and foreign currency swaps ($26 million) and, as of December 31, 2013, include interest rate swaps ($301 million) and foreign currency swaps ($26 million). |
Financial_Instruments_by_Balan1
Financial Instruments by Balance Sheet Grouping (Parenthetical) (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current assets(a) | $3,473 | $3,689 | ||
Other noncurrent assets(b) | 3,759 | 3,596 | ||
Other current liabilities(c) | 10,315 | 9,972 | ||
Other noncurrent liabilities | 4,416 | 4,767 | ||
Selected Financial Assets and Liabilities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current assets(a) | 132 | [1] | 286 | [1] |
Other noncurrent assets(b) | 1,308 | [2] | 1,225 | [2] |
Selected Financial Assets and Liabilities [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current assets(a) | 49 | 172 | ||
Selected Financial Assets and Liabilities [Member] | Interest rate swaps [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current assets(a) | 68 | 90 | ||
Other noncurrent assets(b) | 370 | 378 | ||
Selected Financial Assets and Liabilities [Member] | Currency Swap [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current assets(a) | 15 | 24 | ||
Other noncurrent assets(b) | 938 | 847 | ||
Selected Financial Assets and Liabilities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current liabilities(c) | 275 | [3] | 303 | [3] |
Other noncurrent liabilities | 212 | [4] | 327 | [4] |
Selected Financial Assets and Liabilities [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current liabilities(c) | 184 | 219 | ||
Selected Financial Assets and Liabilities [Member] | Interest rate swaps [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other noncurrent liabilities | 186 | 301 | ||
Selected Financial Assets and Liabilities [Member] | Currency Swap [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Other current liabilities(c) | 90 | 84 | ||
Other noncurrent liabilities | $26 | $26 | ||
[1] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($68 million), foreign currency swaps ($15 million) and foreign currency forward-exchange contracts ($49 million) and, as of December 31, 2013, include interest rate swaps ($90 million), foreign currency swaps ($24 million) and foreign currency forward-exchange contracts ($172 million). | |||
[2] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($370 million) and foreign currency swaps ($938 million) and, as of December 31, 2013, include interest rate swaps ($378 million) and foreign currency swaps ($847 million). | |||
[3] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($1 million), foreign currency swaps ($90 million) and foreign currency forward-exchange contracts ($184 million) and, as of December 31, 2013, include foreign currency swaps ($84 million) and foreign currency forward-exchange contracts ($219 million). | |||
[4] | As of March 30, 2014, derivative instruments at fair value include interest rate swaps ($186 million) and foreign currency swaps ($26 million) and, as of December 31, 2013, include interest rate swaps ($301 million) and foreign currency swaps ($26 million). |
Financial_Instruments_Investme
Financial Instruments - Investments in Debt Securities (Detail) (USD $) | Mar. 30, 2014 | |
In Millions, unless otherwise specified | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Debt securities maturities within 1 year | $31,112 | |
Debt securities maturities over 1 to 5 years | 11,183 | |
Debt securities maturities over 5 to 10 years | 1,271 | |
Debt securities maturities after 10 years | 628 | |
Total debt securities | 44,194 | |
Western European, scandinavian and other government debt [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 11,530 | [1] |
Available-for-sale debt securities maturities over 1 to 5 years | 2,141 | [1] |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | [1] |
Available-for-sale debt securities maturities over 10 years | 0 | [1] |
Available-for-sale debt securities maturities total | 13,671 | [1] |
Held-to-maturity debt securities maturities within 1 year | 5,336 | [1] |
Held-to-maturity debt securities with maturities over 1 to 5 years | 0 | [1] |
Held-to-maturity debt securities maturities over 5 to 10 years | 0 | [1] |
Held-to-maturity debt securities maturities over 10 years | 0 | [1] |
Held-to-maturity debt securities maturities total | 5,336 | [1] |
Corporate debt [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 2,701 | [2] |
Available-for-sale debt securities maturities over 1 to 5 years | 4,696 | [2] |
Available-for-sale debt securities maturities over 5 to 10 years | 1,260 | [2] |
Available-for-sale debt securities maturities over 10 years | 290 | [2] |
Available-for-sale debt securities maturities total | 8,947 | [2] |
Reverse repurchase agreements [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 1,433 | [3] |
Available-for-sale debt securities maturities over 1 to 5 years | 0 | [3] |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | [3] |
Available-for-sale debt securities maturities over 10 years | 0 | [3] |
Available-for-sale debt securities maturities total | 1,433 | |
Government National Mortgage Association Certificates and Obligations (GNMA) [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 1,076 | |
Available-for-sale debt securities maturities over 1 to 5 years | 139 | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | |
Available-for-sale debt securities maturities over 10 years | 39 | |
Available-for-sale debt securities maturities total | 1,254 | |
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association asset-backed securities [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 0 | [1] |
Available-for-sale debt securities maturities over 1 to 5 years | 2,576 | [1] |
Available-for-sale debt securities maturities over 5 to 10 years | 10 | [1] |
Available-for-sale debt securities maturities over 10 years | 299 | [1] |
Available-for-sale debt securities maturities total | 2,885 | [3] |
Supranational Debt [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 990 | |
Available-for-sale debt securities maturities over 1 to 5 years | 940 | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | |
Available-for-sale debt securities maturities over 10 years | 0 | |
Available-for-sale debt securities maturities total | 1,930 | |
Western European Scandinavian And Other Government Agency Debt [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 1,568 | |
Available-for-sale debt securities maturities over 1 to 5 years | 356 | |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | |
Available-for-sale debt securities maturities over 10 years | 0 | |
Available-for-sale debt securities maturities total | 1,924 | [1] |
U.S. government debt [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Available-for-sale debt securities maturities within 1 year | 3,483 | [1] |
Available-for-sale debt securities maturities over 1 to 5 years | 166 | [1] |
Available-for-sale debt securities maturities over 5 to 10 years | 0 | [1] |
Available-for-sale debt securities maturities over 10 years | 0 | [1] |
Available-for-sale debt securities maturities total | 3,649 | [1] |
Western European, Scandinavian and Other Government Agency Debt, Certificates of Deposit And Other [Member] | Certificates of deposit and other [Member] | ' | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | |
Held-to-maturity debt securities maturities within 1 year | 2,995 | [1] |
Held-to-maturity debt securities with maturities over 1 to 5 years | 169 | [1] |
Held-to-maturity debt securities maturities over 5 to 10 years | 1 | [1] |
Held-to-maturity debt securities maturities over 10 years | 0 | [1] |
Held-to-maturity debt securities maturities total | $3,165 | [1] |
[1] | All issued by above-investment-grade governments, government agencies or supranational entities, as applicable. | |
[2] | Largely issued by above-investment-grade institutions in the financial services sector. | |
[3] | Involving U.S. securities. |
Financial_Instruments_Narrativ
Financial Instruments - Narrative (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | ||
Interest Rate Contract [Member] | Derivative Financial Instruments [Member] | Senior Unsecured Debt At 6.50 U.K. Pound June 2038 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ||
Commercial Paper | $3,700,000,000 | $3,000,000,000 | ' | ' | ' | ||
Derivative Financial Instruments and Hedging Activities | ' | ' | ' | ' | ' | ||
Long-term debt | 27,649,000,000 | [1],[2],[3] | 30,462,000,000 | [1],[2],[3] | ' | ' | 2,500,000,000 |
Aggregate notional amount of interest rate derivative financial instruments | ' | ' | 14,100,000,000 | ' | ' | ||
Derivative, Net Liability Position, Aggregate Fair Value | 192,000,000 | ' | ' | ' | ' | ||
Posted collateral | 225,000,000 | ' | ' | ' | ' | ||
Credit Risk Derivatives | ' | ' | ' | ' | ' | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | ' | ' | ' | 2,200,000,000 | ' | ||
Securities Received as Collateral | ' | ' | ' | $1,200,000,000 | ' | ||
[1] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | ||||||
[2] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | ||||||
[3] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 |
Financial_Instruments_Derivati
Financial Instruments - Derivative Financial Instruments and Hedging Activities (Detail) (USD $) | 3 Months Ended | |||||
Mar. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | ($12,000,000) | [1],[2] | ($526,000,000) | [1],[2] | ' | |
Long-term debt | 27,649,000,000 | [3],[4],[5] | ' | 30,462,000,000 | [3],[4],[5] | |
Net Investment Hedging [Member] | Foreign Currency Long Term Debt [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Non - Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 0 | [1],[2] | 0 | [1],[2] | ' | |
Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | 9,000,000 | [1],[2] | -382,000,000 | [1],[2] | ' | |
Cash Flow Hedging [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -43,000,000 | [1],[2] | 53,000,000 | [1],[2] | ' | |
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | -21,000,000 | [1],[2] | -144,000,000 | [1],[2] | ' | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
Not Designated as Hedging Instrument [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
All other, net [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Reclassified from OCI into OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -80,000,000 | [1],[2] | -210,000,000 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | Foreign Currency Long Term Debt [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Non - Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -14,000,000 | [1],[2] | 63,000,000 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -8,000,000 | [1],[2] | 123,000,000 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | -15,000,000 | [1],[2] | -449,000,000 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | Not Designated as Hedging Instrument [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[2] | 0 | [1],[2] | ' | |
Other Comprehensive Income (Loss) [Member] | All other, net [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 0 | [1],[2] | 0 | [1],[2] | ' | |
Other Income Expense [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -18,000,000 | [1],[6],[7] | 142,000,000 | [1],[6],[7] | ' | |
Other Income Expense [Member] | Net Investment Hedging [Member] | Foreign Currency Long Term Debt [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Non - Derivative Financial Instruments Gains/(Losses) Recognized in OCI | 0 | [1],[6],[7] | ' | ' | ||
Other Income Expense [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[6],[7] | -3,000,000 | [1],[6],[7] | ' | |
Other Income Expense [Member] | Cash Flow Hedging [Member] | Currency Swap [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[6],[7] | ' | ' | ||
Other Income Expense [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | 0 | [1],[6],[7] | 0 | [1],[6],[7] | ' | |
Other Income Expense [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -3,000,000 | [1],[6],[7] | -4,000,000 | [1],[6],[7] | ' | |
Other Income Expense [Member] | Not Designated as Hedging Instrument [Member] | Foreign currency forward-exchange contracts [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -12,000,000 | [1],[6],[7] | 149,000,000 | [1],[6],[7] | ' | |
Other Income Expense [Member] | All other, net [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Financial Instruments Gains/(Losses) Recognized in OID | -3,000,000 | [1],[6],[7] | 0 | [1],[6],[7] | ' | |
Interest Rate Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative, Notional Amount | 14,100,000,000 | ' | ' | |||
Foreign Exchange Contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Asset, Notional Amount | 38,000,000,000 | ' | ' | |||
Senior Unsecured Debt At 6.50 U.K. Pound June 2038 [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Long-term debt | $2,500,000,000 | ' | ' | |||
[1] | OID =ther (income)/deductions—net, included in Other deductions—net in the condensed consolidated statements of income. OCI =ther comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income | |||||
[2] | For derivative financial instruments in cash flow hedge relationships, the effective portion is included in Other comprehensive loss––Unrealized holding gains/(losses) on derivative financial instruments. For derivative financial instruments in net investment hedge relationships and for foreign currency debt designated as hedging instruments, the effective portion is included in Other comprehensive loss––Foreign currency translation adjustments. | |||||
[3] | Some carrying amounts may include adjustments for discount or premium amortization or for the effect of hedging the interest rate fair value risk associated with certain financial liabilities by interest rate swaps. | |||||
[4] | Includes foreign currency debt with fair values of $659 million as of March 30, 2014 and $651 million as of December 31, 2013, which are used as hedging instruments. | |||||
[5] | The fair value of our long-term debt (not including the current portion of long-term debt) is $32.6 billion as of March 30, 2014 and $35.1 billion as of December 31, 2013. The fair value measurements for our long-term debt are based on Level 2 inputs, using a market approach. Generally, the difference between the fair value of our long-term debt and the amount reported on the consolidated balance sheet is due to a decline in relative market interest rates since the debt issuance.The following table provides the classification of these selected financial assets and liabilities in the condensed consolidated balance sheets:(MILLIONS OF DOLLARS) March 30, 2014 December 31, 2013Assets Cash and cash equivalents $1,171 $1,104Short-term investments 31,019 30,225Long-term investments 15,822 16,406Other current assets(a) 132 286Other noncurrent assets(b) 1,308 1,225 $49,452 $49,246Liabilities Short-term borrowings, including current portion of long-term debt $9,319 $6,027Other current liabilities(c) 275 303Long-term debt 27,649 30,462Other noncurrent liabilities(d) 212 327 $37,455 37,119 | |||||
[6] | Also includes gains and losses attributable to derivative instruments designated and qualifying as fair value hedges, as well as the offsetting gains and losses attributable to the hedged items in such hedging relationships. | |||||
[7] | There was no significant ineffectiveness for any period presented. |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Inventories [Line Items] | ' | ' | ||
Finished goods | $2,526 | $2,216 | ||
Work-in-process | 3,013 | 3,445 | ||
Raw materials and supplies | 527 | 505 | ||
Inventories | 6,066 | 6,166 | ||
Noncurrent inventories not included above(a) | $468 | [1] | $463 | [1] |
[1] | Included in Other noncurrent assets. There are no recoverability issues associated with these amounts. |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2013 | $42,519 | |
Additions | 0 | |
Other(b) | -52 | [1] |
Balance, March 30, 2014 | 42,467 | [2] |
Other operating segment and other business activities [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance, December 31, 2013 | 42,519 | [2] |
Additions | 0 | [2] |
Other(b) | ($52) | [1],[2] |
[1] | Primarily reflects the impact of foreign exchange. | |
[2] | The amount to be allocated includes the goodwill associated with our former biopharmaceutical operating segments (see above), for which the allocation to our new reporting units, and, as a result, to the new operating segments, is pending. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | $74,709 | $74,677 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -44,279 | [1] | -43,119 | [1] |
Finite-lived Intangible Assets, less Accumulated Amortization | 30,430 | 31,558 | ||
Total indefinite-lived intangible assets | 7,692 | 7,827 | ||
Intangible assets, gross carrying amount | 82,401 | [1] | 82,504 | [1] |
Identifiable Intangible Assets, less Accumulated Amortization | 38,122 | [1] | 39,385 | [1] |
Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Total indefinite-lived intangible assets | 7,363 | 7,384 | ||
In Process Research and Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Total indefinite-lived intangible assets | 329 | 443 | ||
Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 72,064 | 72,038 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -42,676 | -41,541 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | 29,388 | 30,497 | ||
Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 1,742 | 1,743 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -793 | -773 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | 949 | 970 | ||
License Agreements and Other [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Finite-lived Intangible Assets, Gross Carrying Amount | 903 | 896 | ||
Finite-lived Intangible Assets, Accumulated Amortization | -810 | -805 | ||
Finite-lived Intangible Assets, less Accumulated Amortization | $93 | $91 | ||
Global Innovative Pharmaceutical [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% | ' | ||
Global Innovative Pharmaceutical [Member] | In Process Research and Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 9.00% | ' | ||
Global Innovative Pharmaceutical [Member] | Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 34.00% | ' | ||
Global Innovative Pharmaceutical [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% | ' | ||
Global Vaccines, Oncology and Consumer Healthcare [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 69.00% | ' | ||
Global Vaccines, Oncology and Consumer Healthcare [Member] | In Process Research and Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 58.00% | ' | ||
Global Vaccines, Oncology and Consumer Healthcare [Member] | Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 32.00% | ' | ||
Global Vaccines, Oncology and Consumer Healthcare [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 75.00% | ' | ||
Global Established Pharmaceutical [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 31.00% | ' | ||
Global Established Pharmaceutical [Member] | In Process Research and Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 9.00% | ' | ||
Global Established Pharmaceutical [Member] | Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 34.00% | ' | ||
Global Established Pharmaceutical [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 25.00% | ' | ||
Research and Development Expense [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% | ' | ||
Research and Development Expense [Member] | In Process Research and Development [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 24.00% | ' | ||
Research and Development Expense [Member] | Developed Technology Rights [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% | ' | ||
Research and Development Expense [Member] | Trade Names [Member] | ' | ' | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' | ||
Percentage of total identifiable intangible assets, less accumulated amortization | 0.00% | ' | ||
[1] | The decrease is primarily related to amortization and asset impairment charges. For information about impairments of intangible assets, see Note 4. Other Deductions—Net. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Narrative (Detail) (Finite-Lived Intangible Assets [Member], USD $) | 3 Months Ended | |
In Billions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Finite-Lived Intangible Assets [Member] | ' | ' |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Amortization expense for finite-lived intangible assets | $1.10 | $1.30 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefit Plans - Narrative (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
U.S. Qualified Pension Plans [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Service cost | $64 | [1] | $77 | [1] |
Interest cost | 175 | [1] | 168 | [1] |
Expected return on plan assets | -263 | [1] | -253 | [1] |
Actuarial losses | 16 | [1] | 90 | [1] |
Prior service credits | -2 | [1] | -2 | [1] |
Curtailments | 2 | [1] | -1 | [1] |
Settlements | 9 | [1] | 30 | [1] |
Special termination benefits | 0 | [1] | 0 | [1] |
Defined Benefit Plan, Net Periodic Benefit Cost | 1 | [1] | 109 | [1] |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Service cost | 5 | [2] | 7 | [2] |
Interest cost | 15 | [2] | 14 | [2] |
Expected return on plan assets | 0 | [2] | 0 | [2] |
Actuarial losses | 7 | [2] | 13 | [2] |
Prior service credits | 0 | [2] | -1 | [2] |
Curtailments | 0 | [2] | 0 | [2] |
Settlements | 11 | [2] | 22 | [2] |
Special termination benefits | 0 | [2] | 0 | [2] |
Defined Benefit Plan, Net Periodic Benefit Cost | 38 | [2] | 55 | [2] |
International Pension Plans [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Service cost | 52 | [3] | 56 | [3] |
Interest cost | 100 | [3] | 97 | [3] |
Expected return on plan assets | -114 | [3] | -104 | [3] |
Actuarial losses | 25 | [3] | 37 | [3] |
Prior service credits | -2 | [3] | -2 | [3] |
Curtailments | -1 | [3] | -1 | [3] |
Settlements | 1 | [3] | 4 | [3] |
Special termination benefits | 2 | [3] | 0 | [3] |
Defined Benefit Plan, Net Periodic Benefit Cost | 63 | [3] | 87 | [3] |
Postretirement Plans [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Service cost | 14 | 16 | ||
Interest cost | 42 | 42 | ||
Expected return on plan assets | -16 | -14 | ||
Actuarial losses | 1 | 11 | ||
Prior service credits | -14 | -11 | ||
Curtailments | -3 | -7 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $24 | $37 | ||
[1] | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. qualified pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation (which reduced the amount of deferred actuarial losses), lower service cost resulting from cost-reduction initiatives, lower settlement activity and greater expected return on plan assets resulting from an increased plan asset base, partially offset by higher interest costs resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | |||
[2] | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our U.S. supplemental (non-qualified) pension plans was primarily driven by lower settlement activity and the decrease in the amounts amortized for actuarial losses resulting from the increase, in 2013, in the discount rate used to determine the benefit obligation. | |||
[3] | The decrease in net periodic benefit costs for the three months ended March 30, 2014, compared to the three months ended March 31, 2013, for our international pension plans was primarily driven by the decrease in the amounts amortized for actuarial losses resulting from increases, in 2013, in the discount rates used to determine the benefit obligations and greater expected return on plan assets resulting from an increased plan asset base. |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefit Plans (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | |
U.S. Qualified Pension Plans [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Defined Benefit Plan, Contributions by Employer | $0 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 6 | [1] |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Defined Benefit Plan, Contributions by Employer | 83 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 176 | [1] |
International Pension Plans [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Defined Benefit Plan, Contributions by Employer | 87 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 310 | [1] |
Postretirement Plans [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Defined Benefit Plan, Contributions by Employer | 55 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $239 | [1] |
[1] | Contributions expected to be made for 2014 are inclusive of amounts contributed during the three months ended March 30, 2014. The U.S. supplemental (non-qualified) pension plan, international pension plan and the postretirement plan contributions from our general assets include direct employer benefit payments. |
Earnings_Per_Common_Share_Attr2
Earnings Per Common Share Attributable to Common Shareholders (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
EPS Numerator-Basic | ' | ' | ||
Income from continuing operations | $2,265 | $2,616 | ||
Net Income (Loss) Attributable to Noncontrolling Interests | 9 | 15 | ||
Income from continuing operations attributable to Pfizer Inc. | 2,256 | 2,607 | ||
Less: Preferred stock dividends––net of tax | 0 | 0 | ||
Income from continuing operations attributable to Pfizer Inc. common shareholders | 2,256 | 2,607 | ||
Discontinued operations––net of tax | 73 | 149 | ||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders | 73 | 143 | ||
Net income attributable to Pfizer Inc. common shareholders | 2,329 | 2,750 | ||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions | 2,256 | 2,607 | ||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions | 2,329 | 2,750 | ||
EPS Denominator | ' | ' | ||
Weighted-average number of common shares outstanding––Basic | 6,389 | 7,187 | ||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock | 87 | 82 | ||
Weighted-average number of common shares outstanding––Diluted | 6,476 | 7,269 | ||
Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) | 43 | [1] | 97 | [1] |
Discontinued Operations [Member] | ' | ' | ||
EPS Numerator-Basic | ' | ' | ||
Net Income (Loss) Attributable to Noncontrolling Interests | 0 | 6 | ||
Continuing Operations [Member] | ' | ' | ||
EPS Numerator-Basic | ' | ' | ||
Net Income (Loss) Attributable to Noncontrolling Interests | $9 | $9 | ||
[1] | These common stock equivalents were outstanding for the three months ended March 30, 2014 and March 31, 2013, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 24 Months Ended | 3 Months Ended | ||||||||||
Oct. 31, 2012 | Dec. 31, 2009 | Mar. 30, 2014 | Dec. 31, 2008 | Oct. 31, 2010 | Jun. 30, 2010 | Mar. 31, 2009 | Aug. 31, 2011 | 31-May-12 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 30, 2014 | Dec. 31, 2012 | Mar. 30, 2014 | Mar. 30, 2014 | Jan. 31, 2011 | Mar. 30, 2014 | |
USD ($) | Wyeth - Protonix [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Viagra [Member] | Sutent [Member] | Lyrica [Member] | Embeda [Member] | Pristiq [Member] | Celebrex [Member] | Toviaz [Member] | Effexor [Member] | Effexor [Member] | Off-Label Promotion [Member] | Antitrust [Member] | Antitrust [Member] | Canada, Dollars | |
Actions | American Optical Corp Subsidiary Of Warner Lambert [Member] | I R E F Trade Secrets Action [Member] | Teva Pharmaceuticals USA, Inc. and Teva Pharmaceutical Industries Ltd. [Member] | Mylan Pharmaceuticals Inc. [Member] | Several Generic Manufacturers [Member] | Watson Laboratories Inc. [Member] | Several Generic Manufacturers [Member] | Teva USA, Mylan Pharmaceuticals Inc., Watson, Lupin Pharmaceuticals USA, Inc., Apotex Corp. and Apotex Inc [Member] | Several Generic Manufacturers [Member] | CAD | CAD | Neurontin [Member] | Neurontin [Member] | Neurontin [Member] | |||
Claim | USD ($) | Patents | Patents | Patents | Patents | Patents | USD ($) | USD ($) | Actions | ||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of Exclusivity | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' |
Number of Patents | ' | ' | ' | ' | ' | 3 | 3 | 3 | 2 | ' | 5 | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,500,000 | ' | ' | ' | ' |
Number of Other Patents | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Pending Claims, Number | ' | ' | 64,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | 38,700,000 | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' |
Estimated Litigation Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,500,000 | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 |
Environmental Complaint And Penalty Demand, Environmental Protection Agency | 216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Settlement, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $325,000,000 | $190,000,000 | ' | ' |
Number of Actions | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Segment_Geographic_and_Other_R2
Segment, Geographic and Other Revenue Information - Narrative (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 |
Operating_Segment | Selling Informational And Administrative Expenses [Member] | Research and Development Expense [Member] | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of operating segments (in operating segments) | 3 | ' | ' | ' |
Amounts subject to allocation | ' | ' | $500 | $260 |
Total assets | $171,808 | $172,101 | ' | ' |
Segment_Geographic_and_Other_R3
Segment, Geographic and Other Revenue Information (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | $11,353 | $12,410 | ||
Earnings(a) | 2,847 | [1] | 3,725 | [1] |
Global Innovative Pharmaceutical [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 3,076 | 3,306 | ||
Earnings(a) | 1,767 | [1] | 1,895 | [1] |
Global Vaccines, Oncology and Consumer Healthcare [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 2,174 | 2,190 | ||
Earnings(a) | 1,057 | [1] | 995 | [1] |
Global Established Pharmaceutical [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 5,990 | 6,861 | ||
Earnings(a) | 4,049 | [1] | 4,452 | [1] |
Reportable Segments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 11,240 | 12,357 | ||
Earnings(a) | 6,873 | [1] | 7,342 | [1] |
Corporate [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 0 | [2] | 0 | [2] |
Earnings(a) | -1,200 | [1],[2] | -1,334 | [1],[2] |
Purchase Accounting Adjustments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 0 | [2] | 0 | [2] |
Earnings(a) | -1,008 | [1],[2] | -1,219 | [1],[2] |
Acquisition-related Costs [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 0 | [2] | 0 | [2] |
Earnings(a) | -30 | [1],[2] | -90 | [1],[2] |
Certain significant items [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 57 | [3] | 0 | [3] |
Earnings(a) | -1,016 | [1],[3] | -88 | [1],[3] |
Other unallocated [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Earnings(a) | -105 | [1] | -226 | [1] |
Other operating segment and other business activities [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Revenues | 56 | [4] | 53 | [4] |
Earnings(a) | ($667) | [1],[4] | ($660) | [1],[4] |
[1] | Income from continuing operations before provision for taxes on income. | |||
[2] | As described above in the "Other Costs and Business Activities" section. | |||
[3] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the first quarter of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture.For Earnings in the first quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $8 million, (ii) charges for certain legal matters of $694 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $134 million and (v) other charges of $82 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net.For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $215 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $394 million, (iv) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $18 million and (vi) other charges of $38 million. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. | |||
[4] | Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization. |
Segment_Geographic_and_Other_R4
Segment, Geographic and Other Revenue Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||
Mar. 30, 2014 | Mar. 31, 2013 | |||
Segment Reporting Information [Line Items] | ' | ' | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $2,847,000,000 | [1] | $3,725,000,000 | [1] |
Certain legal matters, net(c) | 694,000,000 | [2] | -83,000,000 | [2] |
Revenues | 11,353,000,000 | 12,410,000,000 | ||
Certain asset impairments and related charges(f) | 115,000,000 | [3] | 398,000,000 | [3] |
(Gain) loss associated with the transfer of certain product rights to an equity-method investment | 0 | [4] | -490,000,000 | [4] |
Certain significant items [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -1,016,000,000 | [1],[5] | -88,000,000 | [1],[5] |
Revenues | 57,000,000 | [5] | 0 | [5] |
(Gain) loss associated with the transfer of certain product rights to an equity-method investment | ' | 490,000,000 | ||
Other unallocated [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -105,000,000 | [1] | -226,000,000 | [1] |
Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest [Member] | Certain significant items [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 8,000,000 | ' | ||
Certain legal matters, net(c) | ' | -87,000,000 | ||
Certain asset impairments and related charges(f) | 114,000,000 | 394,000,000 | ||
Cost Reduction And Productivity Initiatives Excluding Acquisition Related Costs | 134,000,000 | 215,000,000 | ||
Other Nonoperating Income (Expense) | -82,000,000 | -38,000,000 | ||
Business Separation Costs | ' | $18,000,000 | ||
[1] | Income from continuing operations before provision for taxes on income. | |||
[2] | In the first quarter of 2014, includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter. In the first quarter of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. | |||
[3] | In the first quarter of 2014, includes an intangible asset impairment charge of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first quarter of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program. In the first quarter of 2013, includes an intangible asset impairment charge of $394 million, all of which relates to developed technology rights for use in the development of bone and cartilage. The intangible asset impairment charge for 2013 is associated with the Global Innovative Pharmaceutical segment and reflects, among other things, updated commercial forecasts. | |||
[4] | Represents the gain associated with the transfer of certain product rights to Hisun Pfizer, our 49%-owned equity-method investment in China. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments. | |||
[5] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the first quarter of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture.For Earnings in the first quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $8 million, (ii) charges for certain legal matters of $694 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $134 million and (v) other charges of $82 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net.For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $215 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $394 million, (iv) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $18 million and (vi) other charges of $38 million. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. |
Segment_Geographic_and_Other_R5
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | $11,353 | $12,410 | ||
Percentage Change in Revenue | -9.00% | ' | ||
United States [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | 4,275 | 4,914 | ||
Percentage Change in Revenue | -13.00% | ' | ||
Developed Europe [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | 2,795 | [1] | 2,804 | [1] |
Percentage Change in Revenue | 0.00% | [1] | ' | |
Developed Rest Of World [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | 1,728 | [2] | 2,032 | [2] |
Percentage Change in Revenue | -15.00% | [2] | ' | |
Emerging Markets [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | $2,555 | [3] | $2,660 | [3] |
Percentage Change in Revenue | -4.00% | [3] | ' | |
[1] | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.2 billion in the first quarter of 2014 and $2.1 billion in the first quarter of 2013. | |||
[2] | Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea. | |||
[3] | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. |
Segment_Geographic_and_Other_R6
Segment, Geographic and Other Revenue Information - Revenues By Geographic Area (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | $11,353 | $12,410 | ||
Developed Europe [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | 2,795 | [1] | 2,804 | [1] |
Certain significant items [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | 57 | [2] | 0 | [2] |
Euro Member Countries, Euro | Developed Europe [Member] | ' | ' | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ||
Revenues | $2,200 | $2,100 | ||
[1] | Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $2.2 billion in the first quarter of 2014 and $2.1 billion in the first quarter of 2013. | |||
[2] | Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. For Revenues in the first quarter of 2014, certain significant items represent revenues related to our transitional manufacturing and supply agreements with Zoetis. For additional information, see Note 2A. Divestiture and Equity-Method Investments: Divestiture.For Earnings in the first quarter of 2014, certain significant items includes: (i) income related to our transitional manufacturing and supply agreements with Zoetis of $8 million, (ii) charges for certain legal matters of $694 million, (iii) certain asset impairments and related charges of $114 million, (iv) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $134 million and (v) other charges of $82 million. For additional information, see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net.For Earnings in the first quarter of 2013, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $215 million, (ii) net credits for certain legal matters of $87 million, (iii) certain asset impairment charges of $394 million, (iv) the gain associated with the transfer of certain product rights to our 49%-owned equity-method investment in China of $490 million, (v) costs associated with the separation of Zoetis of $18 million and (vi) other charges of $38 million. For additional information, see Note 2B. Divestiture and Equity-Method Investments: Equity-Method Investments, Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives and Note 4. Other Deductions—Net. |
Segment_Geographic_and_Other_R7
Segment, Geographic and Other Revenue Information - Revenues By Products (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | $11,353 | $12,410 | ||
Biopharmaceutical [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 10,479 | 11,546 | ||
Biopharmaceutical [Member] | Lyrica [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 1,150 | [1] | 1,066 | [1] |
Biopharmaceutical [Member] | Prevnar/ Prevenar family [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 927 | 927 | ||
Biopharmaceutical [Member] | Enbrel (Outside the U.S. and Canada) [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 914 | 877 | ||
Biopharmaceutical [Member] | Celebrex [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 624 | 653 | ||
Biopharmaceutical [Member] | Lipitor [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 457 | 626 | ||
Biopharmaceutical [Member] | Viagra [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 374 | [2] | 461 | [2] |
Biopharmaceutical [Member] | Zyvox [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 321 | 342 | ||
Biopharmaceutical [Member] | Norvasc [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 278 | 301 | ||
Biopharmaceutical [Member] | Sutent [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 268 | 302 | ||
Biopharmaceutical [Member] | Premarin family [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 248 | 244 | ||
Biopharmaceutical [Member] | BeneFIX [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 201 | 189 | ||
Biopharmaceutical [Member] | Vfend [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 177 | 187 | ||
Biopharmaceutical [Member] | Pristiq [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 172 | 166 | ||
Biopharmaceutical [Member] | Genotropin [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 166 | 189 | ||
Biopharmaceutical [Member] | Chantix / Champix [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 147 | 166 | ||
Biopharmaceutical [Member] | ReFacto AF/ Xyntha [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 145 | 139 | ||
Biopharmaceutical [Member] | Xalatan Xalacom [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 119 | 147 | ||
Biopharmaceutical [Member] | Medrol [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 106 | 113 | ||
Biopharmaceutical [Member] | Zoloft [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 101 | 116 | ||
Biopharmaceutical [Member] | Zithromax / Zmax [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 92 | 116 | ||
Biopharmaceutical [Member] | Sulperazon [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 88 | 71 | ||
Biopharmaceutical [Member] | Inlyta [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 88 | 63 | ||
Biopharmaceutical [Member] | Xalkori [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 88 | 53 | ||
Biopharmaceutical [Member] | Rapamune [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 88 | 84 | ||
Biopharmaceutical [Member] | Relpax [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 87 | 86 | ||
Biopharmaceutical [Member] | Effexor [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 82 | 105 | ||
Biopharmaceutical [Member] | Fragmin [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 81 | 86 | ||
Biopharmaceutical [Member] | Revatio [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 76 | 72 | ||
Biopharmaceutical [Member] | Zosyn / Tazocin [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 74 | 87 | ||
Biopharmaceutical [Member] | Tygacil [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 74 | 87 | ||
Biopharmaceutical [Member] | Cardura [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 66 | 76 | ||
Biopharmaceutical [Member] | Toviaz [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 63 | 52 | ||
Biopharmaceutical [Member] | Epi Pen [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 63 | 72 | ||
Biopharmaceutical [Member] | Inspra [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 61 | 52 | ||
Biopharmaceutical [Member] | Xanax/Xanax XR [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 59 | 70 | ||
Biopharmaceutical [Member] | Depo-Provera [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 53 | 37 | ||
Biopharmaceutical [Member] | Diflucan [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 52 | 45 | ||
Biopharmaceutical [Member] | Xeljanz [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 52 | 11 | ||
Biopharmaceutical [Member] | Caduet [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 50 | 56 | ||
Biopharmaceutical [Member] | Somavert [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 50 | 48 | ||
Biopharmaceutical [Member] | Alliance revenues [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 213 | [3] | 747 | [3] |
Consumer Healthcare [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 761 | 811 | ||
Other products [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 113 | [4] | 53 | [4] |
Global Innovative Pharmaceutical [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 3,076 | 3,306 | ||
Global Innovative Pharmaceutical [Member] | Biopharmaceutical [Member] | All Other Biopharmaceutical Products [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 145 | 166 | ||
Global Established Pharmaceutical [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 5,990 | 6,861 | ||
Global Established Pharmaceutical [Member] | Biopharmaceutical [Member] | All Other Biopharmaceutical Products [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | 1,697 | 1,959 | ||
Vaccines and Oncology [Member] | Biopharmaceutical [Member] | All Other Biopharmaceutical Products [Member] | ' | ' | ||
Revenue from External Customer [Line Items] | ' | ' | ||
Revenues | $42 | $34 | ||
[1] | Lyrica revenues from all of Europe are included in GEP. All other Lyrica revenues are included in GIP. | |||
[2] | Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe. | |||
[3] | Includes Enbrel (GIP, in the U.S. and Canada through October 31, 2013), Spiriva (GEP), Rebif (GIP), Aricept (GEP) and Eliquis (GIP). | |||
[4] | Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes, in 2014, the revenues related to our transitional manufacturing and supply agreements with Zoetis. |
Subsequent_Event_Details
Subsequent Event (Details) (AstraZeneca [Member], Business acquisition [Member], GBP £) | 2-May-14 |
AstraZeneca [Member] | Business acquisition [Member] | ' |
Subsequent Event [Line Items] | ' |
Proposed Business Combination Amount of Shares Offered in Combined Entity | 1.845 |
Proposed Business Combination Cash Amount Offered (per share) in Addition to Shares in Combined Entity | £ 15.98 |