Pfizer 2010 Annual Report Download - page 22

Financial Review
Pfizer Inc. and Subsidiary Companies
Analysis of the Consolidated Statements of Income
YEAR ENDED DECEMBER 31, % CHANGE
(MILLIONS OF DOLLARS) 2010 2009 2008 10/09 09/08
Revenues $67,809 $50,009 $48,296 36 4
Cost of sales 16,279 8,888 8,112 83 10
% of revenues 24.0% 17.8% 16.8%
Selling, informational and administrative expenses 19,614 14,875 14,537 32 2
% of revenues 29.0% 29.7% 30.1%
R&D expenses 9,413 7,845 7,945 20 (1)
% of revenues 13.9% 15.7% 16.5%
Amortization of intangible assets 5,404 2,877 2,668 88 8
% of revenues 8.0% 5.8% 5.5%
Acquisition-related IPR&D charges 125 68 633 84 (89)
% of revenues 0.2% 0.1% 1.3%
Restructuring charges and certain acquisition-related costs 3,214 4,337 2,675 (26) 62
% of revenues 4.7% 8.7% 5.5%
Other deductions—net 4,338 292 2,032 *(86)
Income from continuing operations before provision for taxes
on income 9,422 10,827 9,694 (13) 12
% of revenues 13.9% 21.7% 20.1%
Provision for taxes on income 1,124 2,197 1,645 (49) 34
Effective tax rate 11.9% 20.3% 17.0%
Discontinued operations—net of tax (9) 14 78 (164) (81)
Less: Net income attributable to noncontrolling interests 32 923256 (59)
Net income attributable to Pfizer Inc. $ 8,257 $ 8,635 $ 8,104 (4) 7
% of revenues 12.2% 17.3% 16.8%
Percentages may reflect rounding adjustments.
* Calculation not meaningful.
Revenues
Total revenues of $67.8 billion in 2010 increased by approximately $17.8 billion compared to 2009, primarily due to:
•the inclusion of revenues from legacy Wyeth products of $18.1 billion; and
•the favorable impact of foreign exchange, which increased revenues by approximately $1.1 billion,
partially offset by:
•the net revenue decrease from legacy Pfizer products of $1.4 billion resulting primarily from continuing generic competition and the loss
of exclusivity on certain products.
Total revenues of $50.0 billion in 2009 increased by approximately $1.7 billion compared to 2008, primarily due to:
•the inclusion of revenues from legacy Wyeth products of $3.3 billion; and
•net revenue growth of legacy Pfizer products of $247 million,
partially offset by:
•the unfavorable impact of foreign exchange, which decreased revenues by approximately $1.8 billion in 2009.
In 2010, Lipitor, Enbrel, Lyrica, Prevnar/Prevenar 13 and Celebrex each delivered at least $2 billion in revenues, while Viagra,
Xalatan/Xalacom, Effexor (which lost exclusivity in the U.S. in July 2010), Norvasc, Prevnar/Prevenar (7-valent), Zyvox, Sutent, the
Premarin family, Geodon/Zeldox and Detrol/Detrol LA each surpassed $1 billion in revenues.
In 2009, Lipitor, Lyrica and Celebrex each delivered at least $2 billion in revenues, while Norvasc, Viagra, Xalatan/Xalacom, Detrol/
Detrol LA, Zyvox and Geodon/Zeldox each surpassed $1 billion in revenues. In 2009, we did not record more than $1 billion in
revenues for any individual legacy Wyeth product since the Wyeth acquisition date of October 15, 2009.
In 2008, Lipitor, Norvasc (which lost U.S. exclusivity in March 2007), Lyrica and Celebrex each delivered at least $2 billion in
revenues, while Geodon/Zeldox, Zyvox, Viagra, Detrol/Detrol LA and Xalatan/Xalacom each surpassed $1 billion in revenues.
Revenues exceeded $500 million in each of 18 countries outside the U.S. in 2010, in each of 13 countries outside the U.S. in 2009
and in each of 14 countries outside the U.S. in 2008. The increase in the number of countries outside the U.S. in which revenues
exceeded $500 million in 2010 was due to the inclusion of revenues from legacy Wyeth products for the full year in 2010. The
decrease in the number of countries outside the U.S. in which revenues exceeded $500 million in 2009 was due to the unfavorable
impact of foreign exchange. The U.S. was the only country to contribute more than 10% of total revenues in each year.
20 2010 Financial Report