Pfizer 2015 Annual Report Download - page 116

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2015 Financial Report
115
The following table provides data related to all PSA activity:
Year Ended December 31,
(MILLIONS OF DOLLARS) 2015 2014 2013
Total fair value of shares vested $14$39$40
Total compensation cost related to nonvested PSA grants not yet recognized, pre-tax $24$21$25
Weighted-average period over which PSA cost is expected to be recognized (years) 1.9 1.7 1.7
Note 14. Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders
The following table provides the detailed calculation of Earnings per common share (EPS):
Year Ended December 31,
(IN MILLIONS) 2015 2014 2013
EPS Numerator––Basic
Income from continuing operations $6,975 $9,119 $11,410
Less: Net income attributable to noncontrolling interests 26 32 30
Income from continuing operations attributable to Pfizer Inc. 6,949 9,087 11,380
Less: Preferred stock dividends––net of tax 112
Income from continuing operations attributable to Pfizer Inc. common
shareholders 6,948 9,086 11,378
Discontinued operations––net of tax 11 48 10,662
Less: Discontinued operations––net of tax, attributable to noncontrolling interests ——39
Discontinued operations––net of tax, attributable to Pfizer Inc. common
shareholders 11 48 10,623
Net income attributable to Pfizer Inc. common shareholders $6,959 $9,134 $22,001
EPS Numerator––Diluted
Income from continuing operations attributable to Pfizer Inc. common
shareholders and assumed conversions $6,948 $9,087 $11,380
Discontinued operations––net of tax, attributable to Pfizer Inc. common
shareholders and assumed conversions 11 48 10,623
Net income attributable to Pfizer Inc. common shareholders and assumed
conversions $6,960 $9,135 $22,003
EPS Denominator
Weighted-average number of common shares outstanding––Basic 6,176 6,346 6,813
Common-share equivalents: stock options, stock issuable under employee
compensation plans, convertible preferred stock and accelerated share
repurchase agreement 81 78 82
Weighted-average number of common shares outstanding––Diluted 6,257 6,424 6,895
Stock options that had exercise prices greater than the average market price of
our common stock issuable under employee compensation plans(a) 50 44 43
(a) These common stock equivalents were outstanding for the years ended December 31, 2015, 2014 and 2013, 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 $243 million in 2015, $216 million in 2014 and $233 million in 2013.
The future minimum rental commitments under non-cancelable operating leases follow:
(MILLIONS OF DOLLARS) 2016 2017 2018 2019 2020 After 2020
Lease commitments $ 202 $ 196 $170 $143 $119 $1,002
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).