Pfizer 2012 Annual Report Download - page 113

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
112
2012 Financial Report
• Animal Health operating segment––includes worldwide revenues and earnings, as defined by management, from products and services to
prevent and treat disease in livestock and companion animals, including anti-infectives, vaccines, parasiticides, medicinal feed additives,
other pharmaceutical products and other non-pharmaceutical products.
• Consumer Healthcare operating segment–– 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, Emergen-C, Preparation H and Robitussin.
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 and other platform-services organizations, which provide technical expertise and other services to the various R&D projects.
WRD is also responsible for facilitating all human-health-related regulatory submissions and interactions with regulatory agencies, including
all safety-event activities.
• Pfizer Medical is responsible for external affairs relating to all therapeutic areas, providing Pfizer-related medical information to healthcare
providers, patients and other parties, and quality assurance and regulatory compliance activities, which include conducting clinical trial
audits and readiness reviews.
• 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.
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 $186 billion as of December 31, 2012 and approximately
$188 billion as of December 31, 2011.