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Financial Review
Pfizer Inc. and Subsidiary Companies
2012 Financial Report
1
INTRODUCTION
Our Financial Review is provided to assist readers in understanding the results of operations, financial condition and cash flows of Pfizer Inc.
(the Company). It should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements.
The discussion in this Financial Review contains forward-looking statements that involve substantial risks and uncertainties. Our actual results
could differ materially from those anticipated in these forward-looking statements as a result of various factors, such as those discussed in
Part 1, Item 1A, “Risk Factors” of our 2012 Annual Report on Form 10-K and in the “Forward-Looking Information and Factors That May Affect
Future Results”, “Our Operating Environment” and “Our Strategy” sections of this Financial Review.
The Financial Review is organized as follows:
•Overview of Our Performance, Operating Environment, Strategy and Outlook. This section, beginning on page 2, provides information
about the following: our business; our 2012 performance; our operating environment; our strategy; our business development initiatives,
such as acquisitions, dispositions, licensing and collaborations; and our financial guidance for 2013.
•Significant Accounting Policies and Application of Critical Accounting Estimates. This section, beginning on page 10, discusses those
accounting policies and estimates that we consider important in understanding Pfizer’s consolidated financial statements. For additional
discussion of our accounting policies, see Notes to Consolidated Financial Statements—Note 1. Basis of Presentation and Significant
Accounting Policies.
•Analysis of the Consolidated Statements of Income. This section begins on page 15, and consists of the following sections:
Revenues. This sub-section, beginning on page 15, provides an analysis of our revenues and products for the three years ended
December 31, 2012, including an overview of research and development expenses and important biopharmaceutical product
developments.
Costs and Expenses. This sub-section, beginning on page 28, provides a discussion about our costs and expenses.
Provision for Taxes on Income. This sub-section, beginning on page 33, provides a discussion of items impacting our tax provisions.
Discontinued Operations. This sub-section, on page 34, provides an analysis of the financial statement impact of our discontinued
operations.
Adjusted Income. This sub-section, beginning on page 34, provides a discussion of an alternative view of performance used by
management.
• Analysis of the Consolidated Statements of Comprehensive Income. This section, on page 38, provides a discussion of changes in certain
components of other comprehensive income.
•Analysis of the Consolidated Balance Sheets. This section, beginning on page 38, provides a discussion of changes in certain balance
sheet accounts.
•Analysis of the Consolidated Statements of Cash Flows. This section, beginning on page 39, provides an analysis of our consolidated
cash flows for the three years ended December 31, 2012.
•Analysis of Financial Condition, Liquidity and Capital Resources. This section, beginning on page 40, provides an analysis of selected
measures of our liquidity and of our capital resources as of December 31, 2012 and December 31, 2011, as well as a discussion of our
outstanding debt and other commitments that existed as of December 31, 2012. Included in the discussion of outstanding debt is a
discussion of the amount of financial capacity available to help fund Pfizer’s future activities.
•New Accounting Standards. This section, on page 44, discusses accounting standards that we have recently adopted, as well as those
that recently have been issued, but not yet adopted.
•Forward-Looking Information and Factors That May Affect Future Results. This section, beginning on page 44, provides a description of
the risks and uncertainties that could cause actual results to differ materially from those discussed in forward-looking statements
presented in this Financial Review relating to, among other things, our anticipated financial and operating performance, business plans
and prospects, in-line products and product candidates, strategic reviews, capital allocation, business-development plans, and plans
relating to share repurchases and dividends. Such forward-looking statements are based on management’s current expectations about
future events, which are inherently susceptible to uncertainty and changes in circumstances. Also included in this section are discussions
of Financial Risk Management and Legal Proceedings and Contingencies.