Pfizer 2013 Annual Report Download - page 105

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
104
2013 Financial Report
Note 14. Earnings Per Common Share Attributable to Common Shareholders
The following table provides the detailed calculation of Earnings per common share (EPS):
Year Ended December 31,
(IN MILLIONS) 2013 2012 2011
EPS Numerator––Basic
Income from continuing operations $11,410 $ 9,021 $ 7,860
Less: Net income attributable to noncontrolling interests 30 28 40
Income from continuing operations attributable to Pfizer Inc. 11,380 8,993 7,820
Less: Preferred stock dividends––net of tax 222
Income from continuing operations attributable to Pfizer Inc. common
shareholders 11,378 8,991 7,818
Discontinued operations––net of tax 10,662 5,577 2,189
Less: Discontinued operations––net of tax, attributable to noncontrolling interests 39 ——
Discontinued operations––net of tax, attributable to Pfizer Inc. common
shareholders 10,623 5,577 2,189
Net income attributable to Pfizer Inc. common shareholders $22,001 $ 14,568 $ 10,007
EPS Numerator––Diluted
Income from continuing operations attributable to Pfizer Inc. common
shareholders and assumed conversions $11,380 $ 8,993 $ 7,820
Discontinued operations––net of tax, attributable to Pfizer Inc. common
shareholders and assumed conversions 10,623 5,577 2,189
Net income attributable to Pfizer Inc. common shareholders and assumed
conversions $22,003 $ 14,570 $ 10,009
EPS Denominator
Weighted-average number of common shares outstanding––Basic 6,813 7,442 7,817
Common-share equivalents: stock options, stock issuable under employee
compensation plans and convertible preferred stock 82 66 53
Weighted-average number of common shares outstanding––Diluted 6,895 7,508 7,870
Stock options that had exercise prices greater than the average market price of
our common stock issuable under employee compensation plans(a) 43 177 272
(a) These common stock equivalents were outstanding for the years ended December 31, 2013, 2012 and 2011, but were not included in the computation of diluted
EPS for those periods because their inclusion would have had an anti-dilutive effect.
Note 15. Lease Commitments
We lease properties and equipment for use in our operations. In addition to rent, the leases may require us to pay directly for taxes, insurance,
maintenance and other operating expenses or to pay higher rent when operating expenses increase. Rental expense, net of sublease income,
was $233 million in 2013, $301 million in 2012 and $378 million in 2011.
The future minimum rental commitments under non-cancelable operating leases follow:
(MILLIONS OF DOLLARS) 2014 2015 2016 2017 2018 After 2018
Lease commitments $ 204 $ 168 $130 $ 98 $ 80 $ 771
Note 16. Insurance
Our insurance coverage reflects market conditions (including cost and availability) existing at the time it is written, and our decision to obtain
insurance coverage or to self-insure varies accordingly. Depending upon the cost and availability of insurance and the nature of the risk
involved, the amount of self-insurance may be significant. The cost and availability of coverage have resulted in self-insuring certain
exposures, including product liability. If we incur substantial liabilities that are not covered by insurance or substantially exceed insurance
coverage and that are in excess of existing accruals, there could be a material adverse effect on our cash flows or results of operations in the
period in which the amounts are paid and/or accrued (see Note 17. Commitments and Contingencies).