Pfizer 2012 Annual Report Download - page 112

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2012 Financial Report 111
C. Purchase Commitments
As of December 31, 2012, we have agreements totaling $3.5 billion to purchase goods and services that are enforceable and legally binding
and include amounts relating to advertising, information technology services, employee benefit administration services, and potential
milestone payments deemed reasonably likely to occur.
Note 18. Segment, Geographic and Other Revenue Information
A. Segment Information
We manage our operations through five operating segments––Primary Care, Specialty Care and Oncology, Established Products and
Emerging Markets, Animal Health, and Consumer Healthcare. (As of the third quarter of 2012, the Animal Health and Consumer Healthcare
business units are no longer managed as a single operating segment.) Each operating segment has responsibility for its commercial activities
and for certain research and development activities related to in-line products and IPR&D projects that generally have achieved proof-of-
concept.
On November 30, 2012, we completed the sale of our Nutrition business to Nestlé and recognized a gain on the sale of this business in Gain/
(loss) on sale of discontinued operations––net of tax in the consolidated statement of income for the year ended December 31, 2012. The
operating results of this business are reported as Income/(loss) from discontinued operations––net of tax in the consolidated statements of
income for all periods presented. See Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments:
Divestitures.
We regularly review our segments and the approach used by management to evaluate performance and allocate resources. Generally,
products are transferred to the Established Products unit in the beginning of the fiscal year following loss of patent protection or marketing
exclusivity.
Operating Segments
A description of each of our five operating segments follows:
• Primary Care operating segment––includes revenues and earnings, as defined by management, from human prescription pharmaceutical
products primarily prescribed by primary-care physicians, and may include products in the following therapeutic and disease areas:
Alzheimer’s disease, cardiovascular (excluding pulmonary arterial hypertension), erectile dysfunction, genitourinary, major depressive
disorder, pain, respiratory and smoking cessation. Examples of products in this unit in 2012 include Celebrex, Chantix/Champix, Eliquis,
Lipitor (in certain EU countries and in Australia and New Zealand), Lyrica, Premarin, Pristiq and Viagra. All revenues and earnings for such
products are allocated to the Primary Care unit, except those generated in Emerging Markets and those that are managed by the
Established Products unit.
• Specialty Care and Oncology operating segment––comprises the Specialty Care business unit and the Oncology business unit.
Specialty Care––includes revenues and earnings, as defined by management, from human prescription pharmaceutical products
primarily prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: anti-
infectives, endocrine disorders, hemophilia, inflammation, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and
vaccines. Examples of products in this unit in 2012 include BeneFIX, Enbrel, Genotropin, Geodon (outside the U.S.), the Prevnar/
Prevenar family, ReFacto AF, Revatio (outside the U.S.), Tygacil, Vfend (outside the U.S. and South Korea), Vyndaqel (outside the
U.S.), Xalatan (outside the U.S., Canada and South Korea), Xeljanz (in the U.S.), Xyntha and Zyvox. All revenues and earnings for such
products are allocated to the Specialty Care unit, except those generated in Emerging Markets and those that are managed by the
Established Products unit.
Oncology––includes revenues and earnings, as defined by management, from human prescription pharmaceutical products addressing
oncology and oncology-related illnesses. The products in this unit in 2012 include Inlyta, Sutent, Torisel, Xalkori, Mylotarg (in Japan) and
Bosulif (in the U.S.). All revenues and earnings for such products are allocated to the Oncology unit, except those generated in
Emerging Markets and those that are managed by the Established Products unit.
• Established Products and Emerging Markets operating segment––comprises the Established Products business unit and the Emerging
Markets business unit.
Established Products–– includes revenues and earnings, as defined by management, from human prescription pharmaceutical products
that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically, products are transferred to this unit
in the beginning of the fiscal year following loss of patent protection or marketing exclusivity. However, in certain situations, products
may be transferred to this unit at a different point than the beginning of the fiscal year following loss of patent protection or marketing
exclusivity in order to maximize their value. This unit also excludes revenues and earnings generated in Emerging Markets. Examples of
products in this unit in 2012 include Arthrotec, Effexor, Lipitor (in the U.S., Canada, South Korea and Japan), Medrol, Norvasc, Protonix,
Relpax, Vfend (in the U.S. and South Korea), Xalatan (in the U.S., Canada and South Korea) and Zosyn/Tazocin.
Emerging Markets––includes revenues and earnings, as defined by management, from all human prescription pharmaceutical products
sold in Emerging Markets, including Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa,
Turkey and Central Europe.