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Financial Review
Pfizer Inc. and Subsidiary Companies
INTRODUCTION
Our Financial Review is provided to assist readers in understanding the results of operations, financial condition and cash flows of
Pfizer Inc. (the Company). It should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated
Financial Statements. The discussion in this Financial Review contains forward-looking statements that involve substantial risks and
uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of
various factors such as those discussed in Part 1, Item 1A, “Risk Factors” of our 2011 Annual Report on Form 10-K and in the
“Forward-Looking Information and Factors That May Affect Future Results”, “Our Operating Environment” and “Our Strategy”
sections of this Financial Review.
The Financial Review is organized as follows:
•Overview of Our Performance, Operating Environment, Strategy and Outlook. This section, beginning on page 2, provides information
about the following: our business; our 2011 performance; our operating environment; our strategy; our business development initiatives,
such as acquisitions, dispositions, licensing and collaborations; and our financial guidance for 2012.
•Significant Accounting Policies and Application of Critical Accounting Estimates. This section, beginning on page 11, discusses those
accounting policies and estimates that we consider important in understanding Pfizer’s consolidated financial statements. For additional
discussion of our accounting policies, see Notes to Consolidated Financial Statements—Note 1. Significant Accounting Policies.
•Analysis of the Consolidated Statements of Income. This section begins on page 16, and consists of the following sections:
ORevenues. This section, beginning on page 16, provides an analysis of our revenues and products for the three years ended
December 31, 2011, including an overview of important product developments.
OCosts and Expenses. This section, beginning on page 30, provides a discussion about our costs and expenses.
OProvision for Taxes on Income. This section, beginning on page 35, provides a discussion of items impacting our tax provisions.
ODiscontinued Operations. This section, beginning on page 36, provides an analysis of the financial statement impact of our
discontinued operations.
OAdjusted Income. This section, beginning on page 36, provides a discussion of an alternative view of performance used by
management.
•Analysis of the Consolidated Balance Sheets. This section begins on page 40 and provides a discussion of changes in certain balance
sheet accounts.
•Analysis of the Consolidated Statements of Cash Flows. This section begins on page 41 and provides an analysis of our consolidated
cash flows for the three years ended December 31, 2011.
•Analysis of Financial Condition, Liquidity and Capital Resources. This section, beginning on page 42, provides an analysis of our
financial assets and liabilities as of December 31, 2011 and December 31, 2010, as well as a discussion of our outstanding debt and
other commitments that existed as of December 31, 2011. Included in the discussion of outstanding debt is a discussion of the amount
of financial capacity available to help fund Pfizer’s future activities.
•New Accounting Standards. This section, on page 45, discusses accounting standards that we recently have adopted, as well as those
that recently have been issued, but not yet adopted by us.
•Forward-Looking Information and Factors That May Affect Future Results. This section, beginning on page 45, provides a description of
the risks and uncertainties that could cause actual results to differ materially from those discussed in forward-looking statements
presented in this Financial Review relating to our financial and operating performance, business plans and prospects, in-line products
and product candidates, strategic review, capital allocation, and share-repurchase and dividend-rate plans. Such forward-looking
statements are based on management’s current expectations about future events, which are inherently susceptible to uncertainty and
changes in circumstances. Also included in this section are discussions of Financial Risk Management and Legal Proceedings and
Contingencies.
2011 Financial Report 1