Pfizer 2011 Annual Report Download - page 112

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
(d) Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical
chemical sales operation, and the research and development costs managed by our Worldwide Research and Development organization and our
Pfizer Medical organization.
(e) Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and
development activities and for Earnings includes, among other things, administration expenses, interest income/(expense), certain compensation
and other costs not charged to our operating segments.
(f) Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant
and equipment.
(g) Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction
costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring (see Note 3. Restructuring Charges
and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives for additional information).
(h) Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our
normal business on a regular basis. Such items primarily include restructuring charges and implementation costs associated with our cost-reduction
and productivity initiatives that are not associated with an acquisition, the impact of certain tax and/or legal settlements and certain asset
impairments.
(i) Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. In
2009, R&D expenses include approximately $550 million of Wyeth R&D expenses and Earnings include approximately $900 million of Wyeth
earnings and $290 million of operating expenses incurred in Japan associated with our three biopharmaceutical operating segments, where
allocation among the segments is not practicable.
B. Geographic Information
Revenues exceeded $500 million in each of 18 countries outside the U.S. in 2011 and 2010, and in each of 13 countries outside the
U.S. in 2009. The U.S. was the only country to contribute more than 10% of total revenues in each year.
Revenues by geographic region follow:
YEAR ENDED DECEMBER 31,
(MILLIONS OF DOLLARS) 2011 2010 2009
Revenues(a)
United States $26,933 $28,855 $21,540
Developed Europe(b) 16,297 16,345 12,586
Developed Rest of World(c) 11,091 10,008 8,097
Emerging Markets(d) 13,104 11,849 7,046
Consolidated $67,425 $67,057 $49,269
(a) For 2011, includes King commencing on the acquisition date of January 31, 2011. For 2009, includes Wyeth commencing on the acquisition date of
October 15, 2009.
(b) Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Euro revenues were
approximately $12 billion for each of 2011 and 2010 and $10 billion for 2009.
(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, Middle East,
Africa, Central and Eastern Europe and Turkey.
Long-lived assets by geographic region follow:
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2011 2010
Property, plant and equipment, net
United States $ 7,893 $ 8,537
Developed Europe(a) 6,023 7,159
Developed Rest of World(b) 904 854
Emerging Markets(c) 2,118 2,095
Consolidated $16,938 $18,645
(a) Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.
(b) Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.
(c) Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East,
Africa, Central and Eastern Europe and Turkey.
C. Other Revenue Information
Significant Customers
We sell our products primarily to customers in the wholesale sector. In 2011, sales to our three largest U.S. wholesaler customers
represented approximately 13%, 10% and 9% of total revenues and, collectively, represented approximately 13% of total accounts
receivable as of December 31, 2011. These sales and related accounts receivable were concentrated in our three
biopharmaceutical operating segments. In 2010, sales to our three largest U.S. wholesaler customers represented approximately
14%, 10% and 9% of total revenues and, collectively, represented approximately 18% of total accounts receivable as of
December 31, 2010.
2011 Financial Report 111