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Financial Review
Pfizer Inc. and Subsidiary Companies
2013 Financial Report
43
2012 v. 2011
Our net cash provided by investing activities was $6.2 billion in 2012, compared to $1.8 billion in 2011. The increase in net cash provided by
investing activities was primarily attributable to:
• net proceeds from the sale of our Nutrition business of $11.85 billion in 2012 compared to net proceeds from the sale of our Capsugel
business of $2.4 billion in 2011 (see Notes to Consolidated Financial Statements––Note 2B. Acquisitions, Divestitures, Collaborative
Arrangements and Equity-Method Investments: Divestitures); and
• cash paid of $1.1 billion, net of cash acquired, for our acquisitions of Alacer, Ferrosan and NextWave in 2012 (see Notes to Consolidated
Financial Statements––Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions),
compared to $3.3 billion cash paid, net of cash acquired, in 2011, for our acquisitions of King, Icagen and Excaliard,
partially offset by:
• net purchases of investments of $3.4 billion in 2012, compared to net proceeds from redemptions and sales of investments of $4.1 billion
in 2011, which were primarily used to finance our acquisition of King.
Financing Activities
2013 v. 2012
Our net cash used in financing activities was $15.0 billion in 2013, compared to $16.0 billion in 2012. The decrease in net cash used in
financing activities was primarily attributable to:
• net proceeds from borrowings of $6.0 billion in 2013, compared to net repayments of borrowings of $1.7 billion in 2012; and
• proceeds from the exercise of stock options of $1.8 billion in 2013 compared to $0.6 billion in 2012,
partially offset by:
• purchases of common stock of $16.3 billion in 2013, compared to $8.2 billion in 2012.
2012 v. 2011
Our net cash used in financing activities was $16.0 billion in 2012, compared to $20.6 billion in 2011. The decrease in net cash used in
financing activities was primarily attributable to:
• net repayments of borrowings of $1.7 billion in 2012, compared to net repayments of borrowings of $5.5 billion in 2011;
• purchases of common stock of $8.2 billion in 2012, compared to $9.0 billion in 2011; and
• increased proceeds from the exercise of stock options,
slightly offset by:
• higher cash dividends paid.
Supplemental Schedule of Non-Cash Investing and Financing Information
In 2013, we:
• sold Zoetis common stock for Pfizer common stock valued at $11.4 billion;
• exchanged Zoetis common stock for the retirement of Pfizer commercial paper issued in 2013 for $2.5 billion;
• exchanged Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012 for $1.0 billion;
• transferred certain product rights, valued at $1.2 billion, to an equity-method investment (Hisun Pfizer); and
• contributed an investment, valued at $447 million, in connection with the resolution of a legal matter (Quigley).
Zoetis is our former Animal Health business. For further details on Zoetis-related transactions, see Notes to Consolidated Financial
Statements—Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Divestitures. For further details
on the transfer of certain product rights, see Notes to Consolidated Financial Statements—Note 2D. Acquisitions, Divestitures, Collaborative
Arrangements and Equity-Method Investments: Equity-Method Investments. For further details on the transfer of investments in connection
with the resolution of the Quigley legal matter, see Notes to Consolidated Financial Statements—Note 17A5. Commitments and
Contingencies: Legal Proceedings––Certain Matters Resolved During 2013.
ANALYSIS OF FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
We rely largely on operating cash flows, short-term investments, short-term commercial paper borrowings and long-term debt to provide for
our liquidity requirements. Due to our significant operating cash flows as well as our financial assets, access to capital markets and available
lines of credit and revolving credit agreements, we believe that we have, and will maintain, the ability to meet our liquidity needs for the
foreseeable future, which include:
• the working capital requirements of our operations, including our research and development activities;