Pfizer 2013 Annual Report Download - page 45

Financial Review
Pfizer Inc. and Subsidiary Companies
44
2013 Financial Report
• investments in our business;
• dividend payments and potential increases in the dividend rate;
• share repurchases;
• the cash requirements associated with our cost-reduction/productivity initiatives;
• paying down outstanding debt;
• contributions to our pension and postretirement plans; and
• business-development activities.
With regard to share repurchases, the Company's Board of Directors authorized a new $10 billion share-purchase plan on June 27, 2013.
After giving effect to share purchases through year-end 2013, our remaining share-purchase authorization was approximately $5.5 billion at
December 31, 2013. (For additional information about the share-purchase plans, see the “Share-Purchase Plans” section of this Financial
Review.)
Our long-term debt is rated high quality by both Standard & Poor’s (S&P) and Moody’s Investors Service (Moody's). See the “Credit Ratings”
section below. As market conditions change, we continue to monitor our liquidity position. We have taken and will continue to take a
conservative approach to our financial investments. Both short-term and long-term investments consist primarily of high-quality, highly liquid,
well-diversified and available-for-sale debt securities.
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) 2013 2012
Selected financial assets:
Cash and cash equivalents(a) $2,183 $10,081
Short-term investments(a) 30,225 22,318
Long-term investments(a) 16,406 14,149
48,814 46,548
Debt:
Short-term borrowings, including current portion of long-term debt 6,027 6,424
Long-term debt 30,462 31,036
36,489 37,460
Net financial assets(b) $12,325 $9,088
Working capital(c) $32,878 $35,645
Ratio of current assets to current liabilities 2.41:1 2.22:1
Total Pfizer Inc. shareholders' equity per common share(d) $11.93 $11.17
(a) See Notes to Consolidated Financial Statements––Note 7. Financial Instruments for a description of certain assets held and for a description of credit risk
related to our financial instruments held.
(b) Net financial assets increased during 2013 as net cash provided by operating activities, the net impact of the Zoetis transactions and the proceeds from the
exercise of stock options, among other things, more than offset share purchases and dividend payments. 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 $55 million as of December 31, 2013 and $4.5 billion (Zoetis) as of December 31, 2012.
(d) Represents total Pfizer Inc. shareholders’ equity divided by the actual number of common shares outstanding (which excludes treasury shares).
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.
On June 3, 2013, we completed a public offering of $4.0 billion aggregate principal amount of senior unsecured notes. In addition, we repaid at
maturity our 3.625% senior unsecured notes that were due June 2013, which had a balance of $2.4 billion at December 31, 2012, and, in
December 2013, we redeemed the aggregate principal amount of $1.8 billion of our 5.50% senior unsecured notes that were due in February
2014.
Full Separation of Zoetis––Impacts on Liquidity
As a result of the Zoetis-related transactions, which were completed in the second quarter of 2013, among other impacts, we received cash
and were relieved of debt obligations in the aggregate amount of approximately $6.1 billion. For additional information, see Notes to
Consolidated Financial Statements––Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments:
Divestitures.