Pfizer 2015 Annual Report Download - page 126

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2015 Financial Report
125
For Earnings in 2015, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that
are not associated with an acquisition of $584 million, (ii) foreign currency loss and inventory impairment related to Venezuela of $878 million, (iii) certain asset
impairments of $787 million, (iv) a charge related to pension settlements of $491 million, (v) charges for business and legal entity alignment of $282 million,
(vi) charges for certain legal matters of $968 million and (vii) other charges of $332 million. For additional information, see Note 3 and Note 4.
For Earnings in 2014, certain significant items includes: (i) charges for certain legal matters of $999 million, (ii) certain asset impairments of $440 million, (iii) a
charge for an additional year of Branded Prescription Drug Fee of $215 million, (iv) restructuring charges and implementation costs associated with our cost-
reduction initiatives that are not associated with an acquisition of $598 million, (v) an upfront fee associated with collaborative arrangement with Merck KGaA
of $1.2 billion, (vi) charges for business and legal entity alignment of $168 million and (vii) other charges of $165 million. For additional information, see Note
2C, Note 3 and Note 4.
For Earnings in 2013, certain significant items includes: (i) patent litigation settlement income of $1.3 billion, (ii) restructuring charges and implementation
costs associated with our cost-reduction initiatives that are not associated with an acquisition of $1.3 billion, (iii) net charges for certain legal matters of $21
million, (iv) certain asset impairments of $836 million, (v) the gain associated with the transfer of certain product rights to Hisun Pfizer of $459 million, (vi) costs
associated with the separation of Zoetis of $18 million and (vii) other charges of $290 million. For additional information, see Note 2E, Note 3 and Note 4.
Equity in the net income of investees accounted for by the equity method is not significant for any of our operating segments.
The operating segment information does not purport to represent the revenues, costs and income from continuing operations before provision
for taxes on income that each of our operating segments would have recorded had each segment operated as a standalone company during
the periods presented.
B. Geographic Information
Revenues exceeded $500 million in each of 12 countries outside the U.S. in 2015, 2014 and 2013. The U.S. is the only country to contribute
more than 10% of total revenue in 2015 and 2014. The U.S. and Japan were the only countries to contribute more than 10% of total revenue
in 2013.
The following table provides revenues by geographic area:
Year Ended December 31,
(MILLIONS OF DOLLARS) 2015 2014 2013
United States(a) $ 21,704 $19,073 $20,274
Developed Europe(a), (b) 9,714 11,719 11,739
Developed Rest of World(a), (c) 6,298 7,314 8,346
Emerging Markets (a), (d) 11,136 11,499 11,225
Revenues $48,851 $49,605 $51,584
(a) On September 3, 2015, we acquired Hospira. Commencing from the acquisition date, and in accordance with our domestic and international reporting periods,
our consolidated statement of income for the year ended December 31, 2015 reflects four months of legacy Hospira U.S. operations and three months of legacy
Hospira international operations. See Note 2A for additional information.
(b) Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Revenues denominated in euros were $7.4
billion in 2015, $9.0 billion in 2014 and $8.9 billion in 2013.
(c) Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.
(d) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Africa, Eastern Europe,
Central Europe, the Middle East and Turkey.
Long-lived assets by geographic region follow(a):
As of December 31,
(MILLIONS OF DOLLARS) 2015 2014 2013
Property, plant and equipment, net
United States $7,072 $5,575 $5,885
Developed Europe(b) 4,376 4,606 4,845
Developed Rest of World(c) 660 617 696
Emerging Markets(d) 1,658 963 971
Property, plant and equipment, net $13,766 $11,762 $12,397
(a) Reflects legacy Hospira amounts in 2015 commencing on the Hospira acquisition date, September 3, 2015.
(b) Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.
(c) Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.
(d) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Africa, Eastern Europe,
Central Europe, the Middle East and Turkey.