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Financial Review
Pfizer Inc. and Subsidiary Companies
2012 Financial Report
41
Selected Measures of Liquidity and Capital Resources
The following table provides certain relevant measures of our liquidity and capital resources:
As of December 31,
(MILLIONS OF DOLLARS, EXCEPT RATIOS AND PER COMMON SHARE DATA) 2012 2011
Selected financial assets:
Cash and cash equivalents(a) $10,389 $3,182
Short-term investments(a) 22,319 23,270
Long-term investments 14,149 9,814
46,857 36,266
Debt:
Short-term borrowings, including current portion of long-term debt 6,424 4,016
Long-term debt 31,036 34,926
37,460 38,942
Net financial assets (liabilities)(b) $9,397 $(2,676)
Working capital(c) $32,796 $31,908
Ratio of current assets to current liabilities 2.15:1 2.10:1
Total Pfizer Inc. shareholders' equity per common share(d) $11.17 $10.85
(a) See Notes to Consolidated Financial Statements––Note 7. Financial Instruments for a description of assets held and for a description of credit risk related to our
financial instruments held.
(b) Net financial assets increased during 2012 primarily related to the $11.85 billion proceeds received from the sale of the Nutrition business. For additional
information, see the “Analysis of the Consolidated Statements of Cash Flows” section of this Financial Review.
(c) Working capital includes net assets held for sale of $70 million as of December 31, 2012 and $4.1 billion as of December 31, 2011.
(d) Represents total Pfizer Inc. shareholders’ equity divided by the actual number of common shares outstanding (which excludes treasury shares and shares held
by our employee benefit trust).
For additional information about the sources and uses of our funds, see the “Analysis of the Consolidated Balance Sheets” and “Analysis of
the Consolidated Statements of Cash Flows” sections of this Financial Review.
Subsequent Events
On January 28, 2013, our then wholly owned subsidiary, Zoetis, issued $3.65 billion aggregate principal amount of senior notes, net of an
original issue debt discount of $10 million. The notes have a weighted-average effective interest rate of 3.30%, and mature at various dates as
follows: 1.15% Notes due 2016 ($400 million); 1.875% Notes due 2018 ($749 million); 3.25% Notes due 2023 ($1.349 billion); and 4.7% Notes
due 2043 ($1.142 billion). On February 6, 2013, Zoetis also entered into a commercial paper program with a capacity of up to $1.0 billion. No
amounts are currently outstanding under this program.
Also on January 28, 2013, we transferred to Zoetis substantially all of the assets and liabilities of our Animal Health business in exchange for
all of the Class A and Class B common stock of Zoetis, $1.0 billion of the $3.65 billion senior notes and an amount of cash equal to
substantially all of the cash proceeds received by Zoetis from the remaining $2.65 billion senior notes issued. The $1.0 billion of senior notes
received by Pfizer were exchanged by Pfizer for the retirement of Pfizer commercial paper issued in December 2012, and the cash proceeds
received by Pfizer of approximately $2.5 billion are restricted to debt repayment, dividends and/or stock buybacks, in all cases to be completed
by mid-2014.
On February 6, 2013, an initial public offering (IPO) of Zoetis was completed, pursuant to which we sold 99.015 million shares of Zoetis in
exchange for the retirement of approximately $2.5 billion of Pfizer commercial paper issued on January 10, 2013.
In summary, as a result of the above transactions, we received approximately $6.1 billion of cash (of which approximately $2.5 billion is
restricted to debt repayment, dividends and/or stock buybacks, in all cases to be completed by mid-2014) and incurred approximately $3.65
billion in Zoetis long-term debt. For additional information, see Notes to Consolidated Financial Statements—Note 19A. Subsequent Events:
Zoetis Debt Offering and Initial Public Offering.
Two major corporate debt-rating organizations, Moody’s and S&P, assign ratings to the Zoetis short-term and long-term debt. A security rating
is not a recommendation to buy, sell or hold securities and the rating is subject to revision or withdrawal at any time by the rating organization.
Each rating should be evaluated independently of any other rating.