Pfizer 2011 Annual Report Download - page 110

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
•Specialty Care and Oncology operating segment––comprises the Specialty Care business unit and the Oncology business unit.
– Specialty Care––includes revenues and earnings, as defined by management, from most human pharmaceutical products primarily
prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: anti-
infectives, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension,
specialty neuroscience and vaccines. Examples of products in this unit include BeneFIX, Enbrel, Genotropin, Geodon, the Prevnar/
Prevenar franchise, Rebif, ReFacto AF, Revatio, Xalatan , Xyntha and Zyvox. All revenues and earnings for such products are
allocated to the Specialty Care unit, except those generated in Emerging Markets and those that are managed by the Established
Products unit.
– Oncology––includes revenues and earnings, as defined by management, from human prescription pharmaceutical products
addressing oncology and oncology-related illnesses. Examples of products in this unit include Aromasin, Sutent, Torisel and Xalkori.
All revenues and earnings for such products are allocated to the Oncology unit, except those generated in Emerging Markets and
those that are managed by the Established Products unit.
•Established Products and Emerging Markets operating segment––comprises the Established Products business unit and the Emerging
Markets business unit.
– Established Products––generally includes revenues and earnings, as defined by management, from human prescription
pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically,
products are transferred to this unit in the beginning of the fiscal year following loss of patent protection or marketing exclusivity. In
certain situations, products may be transferred to this unit at a different point than the beginning of the fiscal year following loss of
patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues and earnings generated
in Emerging Markets. Examples of products in this unit include Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/
Tazocin.
– Emerging Markets––includes revenues and earnings, as defined by management, from all human prescription pharmaceutical
products sold in Emerging Markets, including Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central
and Eastern Europe and Turkey.
•Animal Health and Consumer Healthcare operating segment—comprises the Animal Health business unit and the Consumer
Healthcare business unit.
– Animal Health––includes worldwide revenues and earnings, as defined by management, from products and services to prevent and
treat disease in livestock and companion animals, including vaccines, parasiticides and anti-infectives.
– Consumer Healthcare––generally includes worldwide revenues and earnings, as defined by management, from non-prescription
products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. Products
marketed by Consumer Healthcare include Advil, Caltrate, Centrum, ChapStick, Preparation H and Robitussin.
•Nutrition operating segment––generally includes revenues and earnings, as defined by management, from a full line of infant and
toddler nutritional products sold outside of the U.S. and Canada.
Our chief operating decision maker uses the revenues and earnings of the five operating segments, among other factors, for
performance evaluation and resource allocation. For the operating segments that comprise more than one business unit, a single
segment manager has responsibility for those business units.
Other Costs and Business Activities
Certain costs are not allocated to our operating segment results, such as costs associated with the following:
•Worldwide Research and Development (WRD), which is generally responsible for human health research projects until
proof-of-concept is achieved and then for transitioning those projects to the appropriate business unit for possible clinical and
commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization
also has responsibility for certain science-based platform services, which provide technical expertise and other services to the various
research and development projects.
•Pfizer Medical, which is responsible for all human-health-related regulatory submissions and interactions with regulatory agencies. This
organization is also responsible for the collection, evaluation and reporting of all safety event information related to our human health
products and for conducting clinical trial audits and readiness reviews and for providing Pfizer-related medical information to healthcare
providers.
•Corporate, which is responsible for platform functions such as finance, global real estate operations, human resources, legal,
compliance, science and technology, worldwide procurement, worldwide public affairs and policy and worldwide technology. These
costs also include compensation costs and other miscellaneous operating expenses not charged to our operating segments, as well as
interest income and expense.
•Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the
amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) acquisition-related activities,
where we incur costs for restructuring, integration, implementation and executing the transaction; and (iii) certain significant items,
which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and sales of
assets or businesses.
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