Pfizer 2012 Annual Report Download - page 100

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2012 Financial Report
99
Note 14. Earnings Per Common Share Attributable to Common Shareholders
The following table provides the detailed calculation of Earnings per common share:
Year Ended December 31,
(IN MILLIONS) 2012 2011 2010
EPS Numerator––Basic
Income from continuing operations $9,518 $8,395 $8,318
Less: Net income attributable to noncontrolling interests 28 40 31
Income from continuing operations attributable to Pfizer Inc. 9,490 8,355 8,287
Less: Preferred stock dividends––net of tax 222
Income from continuing operations attributable to Pfizer Inc. common
shareholders 9,488 8,353 8,285
Discontinued operations––net of tax 5,080 1,654 (30)
Net income attributable to Pfizer Inc. common shareholders $14,568 $10,007 $8,255
EPS Numerator––Diluted
Income from continuing operations attributable to Pfizer Inc. common
shareholders and assumed conversions $9,490 $8,355 $8,287
Discontinued operations––net of tax 5,080 1,654 (30)
Net income attributable to Pfizer Inc. common shareholders and assumed
conversions $14,570 $10,009 $8,257
EPS Denominator
Weighted-average number of common shares outstanding––Basic 7,442 7,817 8,036
Common-share equivalents: stock options, stock issuable under employee
compensation plans and convertible preferred stock 66 53 38
Weighted-average number of common shares outstanding––Diluted 7,508 7,870 8,074
Stock options that had exercise prices greater than the average market price of
our common stock issuable under employee compensation plans(a) 177 272 413
(a) These common stock equivalents were outstanding for the years ended December 31, 2012, 2011 and 2010, 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 $335 million in 2012, $380 million in 2011 and $381 million in 2010.
The future minimum rental commitments under non-cancelable operating leases follow:
(MILLIONS OF DOLLARS) 2013 2014 2015 2016 2017 After 2017
Lease commitments $ 184 $ 162 $132 $85$74$ 618
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 results of operations or cash flows in the
period in which the amounts are paid and/or accrued (see Note 17. Commitments and Contingencies).