Pfizer 2011 Annual Report Download - page 116

Financial Summary
Pfizer Inc. and Subsidiary Companies
YEAR ENDED/AS OF DECEMBER 31,(a)
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2011 2010 2009 2008 2007
Revenues $ 67,425 $ 67,057 $ 49,269 $ 47,529 $ 47,733
Research and development expenses(b) 9,112 9,392 7,824 7,924 8,071
Other costs and expenses 42,617 45,057 26,373 26,790 27,728
Acquisition-related in-process research and development charges(c) —125 68 633 283
Restructuring charges and certain acquisition-related costs(d) 2,934 3,201 4,330 2,662 2,524
Income from continuing operations before provision for taxes on
income 12,762 9,282 10,674 9,520 9,127
Provision for taxes on income 4,023 1,071 2,145 1,582 977
Income from continuing operations 8,739 8,211 8,529 7,938 8,150
Discontinued operations—net of tax(e) 1,312 77 114 188 34
Less: Net income attributable to noncontrolling interests 42 31 8 22 40
Net income attributable to Pfizer Inc. $ 10,009 $ 8,257 $ 8,635 $ 8,104 $ 8,144
Effective tax rate—continuing operations 31.5% 11.5% 20.1% 16.6% 10.7%
Depreciation and amortization(f) $ 9,026 $ 8,487 $ 4,757 $ 5,090 $ 5,200
Property, plant and equipment additions(f) 1,660 1,513 1,205 1,701 1,880
Cash dividends paid 6,234 6,088 5,548 8,541 7,975
Working capital 29,659 32,377 24,929 16,748 25,415
Property, plant and equipment, less accumulated depreciation 16,938 18,645 22,291 12,864 15,315
Total assets 188,002 195,014 212,949 111,148 115,268
Long-term debt 34,931 38,410 43,192 7,955 7,299
Long-term capital(g) 137,149 145,303 151,454 68,637 80,103
Total Pfizer Inc. shareholders’ equity 82,190 87,813 90,014 57,556 65,010
Earnings per common share—basic:(h)
Income from continuing operations attributable to Pfizer Inc. common
shareholders $ 1.11 $ 1.02 $ 1.22 $ 1.18 $ 1.17
Discontinued operations—net of tax 0.17 0.01 0.02 0.03 —
Net income attributable to Pfizer Inc. common Shareholders $ 1.28 $ 1.03 $ 1.23 $ 1.20 $ 1.18
Earnings per common share—diluted:(h)
Income from continuing operations attributable to Pfizer Inc. common
shareholders $ 1.11 $ 1.01 $ 1.21 $ 1.17 $ 1.17
Discontinued operations—net of tax 0.17 0.01 0.02 0.03 —
Net income attributable to Pfizer Inc. common shareholders $ 1.27 $ 1.02 $ 1.23 $ 1.20 $ 1.17
Market value per share (December 31) $ 21.64 $ 17.51 $ 18.19 $ 17.71 $ 22.73
Return on Pfizer Inc. shareholders’ equity 11.78% 10.39% 13.42% 13.22% 11.94%
Cash dividends paid per common share $ 0.80 $ 0.72 $ 0.80 $ 1.28 $ 1.16
Shareholders’ equity per common share(i) $ 10.85 $ 10.96 $ 11.19 $ 8.56 $ 9.65
Current ratio 2.06:1 2.13:1 1.67:1 1.61:1 2.16:1
Weighted-average shares used to calculate:
Basic earnings per common share amounts 7,817 8,036 7,007 6,727 6,917
Diluted earnings per common share amounts 7,870 8,074 7,045 6,750 6,939
(a) For 2011, includes King commencing on the acquisition date of January 31, 2011. For 2009, includes Wyeth commencing on the acquisition date of
October 15, 2009.
(b) Research and development expenses includes upfront and milestone payments for intellectual property rights of $306 million in 2011, $393 million
in 2010; $489 million in 2009; $377 million in 2008; and $603 million in 2007.
(c) 2010 and 2009 amounts relate to the resolution of a contingency related to our 2008 acquisition of CovX. In 2008 and 2007, we recorded charges
for the estimated portion of the purchase price of acquisitions allocated to in-process research and development.
(d) Restructuring charges and certain acquisition-related costs primarily includes the following:
2011—Restructuring charges of $2.2 billion related to our cost-reduction and productivity initiatives.
2010—Restructuring charges of $2.2 billion related to our acquisition of Wyeth and other cost-reduction initiatives.
2009—Restructuring charges of $3.0 billion related to our acquisition of Wyeth and other cost-reduction initiatives.
2008—Restructuring charges of $2.6 billion related to our cost-reduction initiatives.
2007—Restructuring charges of $2.5 billion related to our cost-reduction initiatives.
(e) The sale of the Capsugel business closed on August 1, 2011, and we have recognized a gain related to the sale of Capsugel in Discontinued
operations—net of tax for the year ended December 31, 2011. Capsugel is presented as a discontinued operation and we have made certain
reclassification adjustments to conform the prior year amounts to current-year presentation.
(f) Includes discontinued operations.
(g) Defined as long-term debt, noncurrent deferred tax liabilities and total shareholders’ equity. In 2009, increase reflects the long-term debt and
deferred tax liabilities associated with the acquisition of Wyeth.
(h) EPS amounts may not add due to rounding.
(i) Represents total Pfizer Inc. shareholders’ equity divided by the actual number of common shares outstanding (which excludes treasury shares and
those held by our employee benefit trusts). The increase in 2009 was due to the issuance of equity to partially finance the Wyeth acquisition.
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