Pfizer 2011 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2011 Pfizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

Financial Review
Pfizer Inc. and Subsidiary Companies
ANALYSIS OF THE CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, % CHANGE
(MILLIONS OF DOLLARS) 2011 2010 2009 11/10 10/09
Revenues $67,425 $67,057 $49,269 136
Cost of sales 15,085 15,838 8,459 (5) 87
% of revenues 22.4% 23.6% 17.2%
Selling, informational and administrative expenses 19,468 19,480 14,752 —32
% of revenues 28.9% 29.0% 29.9%
Research and development expenses 9,112 9,392 7,824 (3) 20
% of revenues 13.5% 14.0% 15.9%
Amortization of intangible assets 5,585 5,403 2,877 388
% of revenues 8.3% 8.1% 5.8%
Acquisition-related in-process research and development
charges —125 68 (100) 84
% of revenues —0.2% 0.1%
Restructuring charges and certain acquisition-related costs 2,934 3,201 4,330 (8) (26)
% of revenues 4.4% 4.8% 8.8%
Other deductions—net 2,479 4,336 285 (43) *
Income from continuing operations before provision for taxes
on income 12,762 9,282 10,674 37 (13)
% of revenues 18.9% 13.8% 21.7%
Provision for taxes on income 4,023 1,071 2,145 276 (50)
Effective tax rate 31.5% 11.5% 20.1%
Plus: Gain from discontinued operations—net of tax 1,312 77 114 *(32)
Less: Net income attributable to noncontrolling interests 42 31 8 35 288
Net income attributable to Pfizer Inc. $10,009 $ 8,257 $ 8,635 21 (4)
% of revenues 14.8% 12.3% 17.5%
Percentages may reflect rounding adjustments.
* Calculation not meaningful.
Revenues-Overview
Total revenues were $67.4 billion in 2011, an increase of 1% compared to 2010, due to:
•the favorable impact of foreign exchange, which increased revenues by approximately $1.9 billion, or 3%; and
•the inclusion of revenues of $1.3 billion, or 2% from our acquisition of King,
partially offset by:
•an operational decline of $2.9 billion or 4%, primarily due to the loss of exclusivity of certain products.
Total revenues of $67.1 billion in 2010 increased by approximately $17.8 billion compared to 2009, primarily due to:
•the inclusion of revenues from legacy Wyeth products of $18.1 billion; and
•the favorable impact of foreign exchange, which increased revenues by approximately $1.1 billion,
partially offset by:
•the net revenue decrease from legacy Pfizer products of $1.4 billion resulting primarily from continuing generic competition and the loss
of exclusivity on certain products.
In 2011, Lipitor (which lost exclusivity in the U.S in November 2011), Lyrica, Prevnar 13/Prevenar 13, Enbrel and Celebrex each
delivered at least $2 billion in revenues, while Viagra, Norvasc, Zyvox, Xalatan/Xalacom (Xalatan lost exclusivity in the U.S. in March
2011), Sutent, Geodon/Zeldox, and the Premarin family each surpassed $1 billion in revenues.
In 2010, Lipitor, Enbrel, Lyrica, Prevnar 13/Prevenar 13 and Celebrex each delivered at least $2 billion in revenues, while Viagra,
Xalatan/Xalacom, Effexor (Effexor XR lost exclusivity in the U.S. in July 2010), Norvasc, Prevnar/Prevenar (7-valent), Zyvox, Sutent,
the Premarin family, Geodon/Zeldox and Detrol/Detrol LA each surpassed $1 billion in revenues.
In 2009, Lipitor, Lyrica and Celebrex each delivered at least $2 billion in revenues, while Norvasc, Viagra, Xalatan/Xalacom, Detrol/
Detrol LA, Zyvox and Geodon/Zeldox each surpassed $1 billion in revenues. In 2009, we did not record more than $1 billion in
revenues for any individual legacy Wyeth product since the Wyeth acquisition date of October 15, 2009.
16 2011 Financial Report