Pfizer Provides Historical Consolidated Statements of Income with the Animal Health Business (Zoetis) Reported as a Discontinued

  Pfizer Provides Historical Consolidated Statements of Income with the Animal
  Health Business (Zoetis) Reported as a Discontinued Operation

Statements Include First Quarter of 2013 and First and Second Quarters of 2012

Business Wire

NEW YORK -- July 23, 2013

For the information of investors, Pfizer Inc. (NYSE:PFE) is providing  the
unaudited condensed consolidated statements of income (statements of income)
of Pfizer for the three months ended March 31, 2013, July 1, 2012 and April 1,
2012, with the financial results of its Animal Health business reported as a
discontinued operation for all periods presented. These statements were
derived from the historical statements of income of Pfizer for the respective
periods. Pfizer’s press release announcing its financial results for the three
months ended June 30, 2013 will be issued on July 30, 2013.

On June 24, 2013, Pfizer completed the full disposition of Zoetis Inc.
(Zoetis), which was achieved through a series of steps, including the
formation of Zoetis, a separate company to which Pfizer transferred
substantially all of its animal health assets and liabilities, an initial
public offering of a 19.8% interest in Zoetis and an exchange offer for the
remaining 80.2% interest. The financial results of Zoetis, the standalone
public company, may differ from the financial results of the Animal Health
business reflected in Pfizer’s statements of income as a discontinued
operation, as the components of this business differed from Zoetis.

This financial information is provided for informational purposes only and
should be read in conjunction with Pfizer’s statements of income and the
accompanying notes and related Management’s Discussion and Analysis of
Financial Condition and Results of Operations included in Pfizer’s Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2013, July 1,
2012 and April 1, 2012.



PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME^(1)
(UNAUDITED)
(millions, except per common share data)
                                                        
                          First-Quarter                         Second-Quarter
                          2013               2012               2012
Revenues                  $   12,410      $   13,845      $   13,968  
Costs and expenses:
Cost of sales^(2)               2,263              2,383            2,376
Selling,
informational and               3,217              3,678            3,665
administrative
expenses^(2)
Research and
development                     1,710              1,974            1,600
expenses^(2)
Amortization of
intangible                      1,219              1,403            1,275
assets^(3)
Restructuring
charges and certain             131                589              184
acquisition-related
costs
Other                        145            1,639          688     
deductions––net
Income from
continuing
operations before               3,725              2,179            4,180
provision for taxes
on income
Provision for taxes          1,109          625            1,180   
on income
Income from
continuing                      2,616              1,554            3,000
operations
Discontinued
operations––net of           149            249            260     
tax
Net income before
allocation to                   2,765              1,803            3,260
noncontrolling
interests
Less: Net income
attributable to              15             9              7       
noncontrolling
interests
Net income
attributable to           $   2,750       $   1,794       $   3,253   
Pfizer Inc.
Earnings per common
share––basic:
Income from
continuing
operations                $     0.36         $     0.20         $   0.40
attributable to
Pfizer Inc. common
shareholders
Discontinued
operations––net of           0.02           0.03           0.03    
tax
Net income
attributable to           $   0.38        $   0.24        $   0.44    
Pfizer Inc. common
shareholders
Earnings per common
share––diluted:
Income from
continuing
operations                $     0.36         $     0.20         $   0.40
attributable to
Pfizer Inc. common
shareholders
Discontinued
operations––net of           0.02           0.03           0.03    
tax
Net income
attributable to           $   0.38        $   0.24        $   0.43    
Pfizer Inc. common
shareholders
                                                                
Weighted-average
shares used to
calculate earnings
per common share:
Basic                        7,187          7,537          7,476   
Diluted                      7,269          7,598          7,537   
                                                                
EPS amounts may not add due to rounding.

    These financial statements present the three months ended March 31, 2013,
(1) April 1, 2012 and July 1, 2012. Subsidiaries operating outside the United
    States are included for the three months ended February 24, 2013, February
    26, 2012 and May 27, 2012.
    
    On June 24, 2013, we completed the full disposition of our Animal Health
    business (Zoetis). The operating results of this business are reported as
    Discontinued operations––net of tax for all periods presented.
    
    On November 30, 2012, we completed the sale of our Nutrition business. The
    operating results of this business are reported as Discontinued
    operations––net of tax for the three months ended April 1, 2012 and July
    1, 2012.
    
(2) Exclusive of amortization of intangible assets, except as discussed in
    footnote (3) below.
    
    Amortization expense related to finite-lived acquired intangible assets
    that contribute to our ability to sell, manufacture, research, market and
    distribute products, compounds and intellectual property is included in
(3) Amortization of intangible assets as these intangible assets benefit
    multiple business functions. Amortization expense related to intangible
    assets that are associated with a single function is included in Cost of
    sales, Selling, informational and administrative expenses or Research and
    development expenses, as appropriate.

                                                                                      

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)
                                                                                                    
                        
                        Three Months Ended March31, 2013
                                         Purchase        Acquisition-                      Certain
                        GAAP             Accounting      Related          Discontinued     Significant     Non-GAAP
                        Reported^(1)     Adjustments     Costs^(2)        Operations       Items^(3)       Adjusted^(4)
Revenues              $ 12,410        $ -             $ -              $ -              $ -             $ 12,410    
Cost of sales^(5)       2,263            5               (33     )        -                (6       )      2,229
Selling,
informational and       3,217            5               (2      )        -                (42      )      3,178
administrative
expenses^(5)
Research and
development             1,710            1               -                -                (93      )      1,618
expenses^(5)
Amortization of
intangible              1,219            (1,180   )      -                -                -               39
assets^(6)
Restructuring
charges and certain     131              -               (55     )        -                (76      )      -
acquisition-related
costs
Other                   145              (50      )      -                -                129             224
deductions––net
Income from
continuing
operations before       3,725            1,219           90               -                88              5,122
provision for taxes
on income
Provision for taxes     1,109            334             26               -                (96      )      1,373
on income
Income from
continuing              2,616            885             64               -                184             3,749
operations
Discontinued
operations––net of      149              -               -                (149     )       -               -
tax
Net income
attributable to         15               -               -                (6       )       -               9
noncontrolling
interests
Net income
attributable to         2,750            885             64               (143     )       184             3,740
Pfizer Inc.
Earnings per common
share attributable      0.38             0.12            0.01             (0.02    )       0.03            0.51
to Pfizer
Inc.––diluted
                                                                                                           
                                                                                                           
                        Three Months Ended April1, 2012
                        GAAP             Purchase        Acquisition-     Discontinued     Certain         Non-GAAP
                        Reported^(1)     Accounting      Related          Operations       Significant     Adjusted^(4)
                                         Adjustments     Costs^(2)                         Items^(3)
Revenues              $ 13,845         $ -             $ -              $ -              $ -             $ 13,845
Cost of sales^(5)       2,383            (7       )      (76     )        -                -               2,300
Selling,
informational and       3,678            3               (1      )        -                (16      )      3,664
administrative
expenses^(5)
Research and
development             1,974            1               (5      )        -                (302     )      1,668
expenses^(5)
Amortization of
intangible              1,403            (1,339   )      -                -                -               64
assets^(6)
Restructuring
charges and certain     589              -               (91     )        -                (498     )      -
acquisition-related
costs
Other                   1,639            (91      )      -                -                (1,244   )      304
deductions––net
Income from
continuing
operations before       2,179            1,433           173              -                2,060           5,845
provision for taxes
on income
Provision for taxes     625              380             63               -                613             1,681
on income
Income from
continuing              1,554            1,053           110              -                1,447           4,164
operations
Discontinued
operations––net of      249              -               -                (249     )       -               -
tax
Net income
attributable to         9                -               -                -                -               9
noncontrolling
interests
Net income
attributable to         1,794            1,053           110              (249     )       1,447           4,155
Pfizer Inc.
Earnings per common
share attributable      0.24             0.14            0.01             (0.03    )       0.19            0.55
to Pfizer
Inc.––diluted
                                                                                                           
                                                                                                           
                        Three Months Ended July1, 2012
                        GAAP             Purchase        Acquisition-     Discontinued     Certain         Non-GAAP
                        Reported^(1)     Accounting      Related          Operations       Significant     Adjusted^(4)
                                         Adjustments     Costs^(2)                         Items^(3)
Revenues              $ 13,968         $ -             $ -              $ -              $ -             $ 13,968
Cost of sales^(5)       2,376            (2       )      (54     )        -                (27      )      2,293
Selling,
informational and       3,665            2               (4      )        -                (15      )      3,648
administrative
expenses^(5)
Research and
development             1,600            2               -                -                (37      )      1,565
expenses^(5)
Amortization of
intangible              1,275            (1,214   )      -                -                -               61
assets^(6)
Restructuring
charges and certain     184              -               (170    )        -                (14      )      -
acquisition-related
costs
Other                   688              59              -                -                (579     )      168
deductions––net
Income from
continuing
operations before       4,180            1,153           228              -                672             6,233
provision for taxes
on income
Provision for taxes     1,180            310             50               -                237             1,777
on income
Income from
continuing              3,000            843             178              -                435             4,456
operations
Discontinued
operations––net of      260              -               -                (260     )       -               -
tax
Net income
attributable to         7                -               -                -                -               7
noncontrolling
interests
Net income
attributable to         3,253            843             178              (260     )       435             4,449
Pfizer Inc.
Earnings per common
share attributable      0.43             0.11            0.02             (0.03    )       0.06            0.59
to Pfizer
Inc.––diluted
                                                                                                           
See end of tables for notes (1) through (6).

Certain amounts may reflect rounding adjustments.

EPS amounts may not add due to rounding.



PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
                                                                       
    These financial statements present the three months ended March 31, 2013,
(1) April 1, 2012 and July 1, 2012. Subsidiaries operating outside the United
    States are included for the three months ended February 24, 2013, February
    26, 2012 and May 27, 2012.
                                                                             
    On June 24, 2013, we completed the full disposition of our Animal Health
    business (Zoetis). The operating results of this business are reported as
    Discontinued operations––net of tax for all periods presented.
                                                                             
    On November 30, 2012, we completed the sale of our Nutrition business. The
    operating results of this business are reported as Discontinued
    operations––net of tax for the three months ended April 1, 2012 and July
    1, 2012.
                                                                             
(2) Acquisition-related costs include the following:
                                                                             
                               First-Quarter              Second-Quarter
         (millions of          2013         2012          2012
         dollars)
                                                                             
         Integration           $  36       $  95        $   105
         costs^(a)
         Restructuring             19           (4    )       65
         charges^(a)
         Additional
         depreciation––asset     35        82          58     
         restructuring^(b)
         Total
         acquisition-related       90           173           228
         costs––pre-tax
         Income taxes^(c)        (26  )     (63   )      (50    )
         Total
         acquisition-related   $  64      $  110      $   178    
         costs––net of tax
                                                                             
         Integration costs represent external, incremental costs directly
         related to integrating acquired businesses, and primarily include
         expenditures for consulting and the integration of systems and
    (a)  processes. Restructuring charges include employee termination costs,
         asset impairments and other exit costs associated with business
         combinations. All of these costs and charges are included in
         Restructuring charges and certain acquisition-related costs.
                                                                             
         Represents the impact of changes in the estimated useful lives of
         assets involved in restructuring actions related to acquisitions.
         Included in Cost of sales ($33 million) and Selling, informational
         and administrative expenses ($2 million) for the three months ended
    (b)  March 31, 2013. Included in Cost of sales ($76 million), Research and
         development expenses ($5 million) and Selling, informational and
         administrative expenses ($1 million) for the three months ended April
         1, 2012. Included in Cost of sales ($54 million) and Selling,
         informational and administrative expenses ($4 million) for the three
         months ended July 1, 2012.
                                                                             
    (c)  Included in Provision for taxes on income.
                                                                             
(3) Certain significant items include the following:
                               First-Quarter              Second-Quarter
         (millions of          2013         2012          2012
         dollars)
                                                                             
         Restructuring         $   76       $   498       $   14
         charges^(a)
         Implementation
         costs and
         additional                139          318           56
         depreciation––asset
         restructuring^(b)
         Gain associated
         with the transfer
         of certain product        (490 )       -             -
         rights to an
         equity-method
         investment^(c)
         Certain legal             (87  )       775           483
         matters^(d)
         Certain asset
         impairment                394          412           77
         charges^(e)
         Costs associated
         with the Zoetis           18           32            29
         IPO^(f)
         Other                   38        25          13     
         Certain significant       88           2,060         672
         items––pre-tax
         Income taxes^(g)        96        (613  )      (237   )
         Certain significant   $  184     $  1,447    $   435    
         items––net of tax
                                                                             
         Primarily relates to our cost-reduction and productivity initiatives.
    (a)  Included in Restructuring charges and certain acquisition-related
         costs.
                                                                             
         Primarily relates to our cost-reduction and productivity initiatives.
         Included in Research and development expenses ($93 million), Selling,
         informational and administrative expenses ($40 million) and Cost of
         sales ($6 million) for the three months ended March 31, 2013.
    (b)  Included in Research and development expenses ($302 million) and
         Selling, informational and administrative expenses ($16 million) for
         the three months ended April 1, 2012. Included in Cost of sales ($4
         million), Selling, informational and administrative expenses ($15
         million) and Research and development expenses ($37 million) for the
         three months ended July 1, 2012.
                                                                             
         Included in Other deductions––net. Represents the gain associated
    (c)  with the transfer of certain product rights to Pfizer's 49%-owned
         equity-method investment in China.
                                                                             
         Included in Other deductions––net. In first-quarter 2013, primarily
         includes an $80 million insurance recovery related to a certain
         litigation matter. In first-quarter 2012, primarily relates to a $450
    (d)  million settlement of a lawsuit by Brigham Young University related
         to Celebrex and charges related to hormone-replacement therapy
         litigation. In second-quarter 2012, primarily includes charges
         related to hormone-replacement therapy litigation.
                                                                             
         Included in Other deductions––net. In first-quarter 2013,
         significantly relates to developed technology, for use in the
         development of bone and cartilage and acquired in connection with our
    (e)  acquisition of Wyeth. In first-quarter 2012, primarily relates to an
         in-process research and development intangible asset compound
         targeting autoimmune diseases and acquired in connection with our
         acquisition of Wyeth, and certain other intangible asset impairments.
                                                                             
         Included in Other deductions––net. Costs incurred in connection with
    (f)  the initial public offering of an approximate 19.8% ownership
         interest in Zoetis. Includes expenditures for banking, legal,
         accounting and similar services.
                                                                             
    (g)  Included in Provision for taxes on income.
                                                                             
    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted
    EPS are not, and should not be viewed as, substitutes for U.S. GAAP net
    income and its components and diluted EPS. Despite the importance of these
    measures to management in goal setting and performance measurement,
    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted
    EPS are Non-GAAP financial measures that have no standardized meaning
(4) prescribed by U.S. GAAP and, therefore, have limits in their usefulness to
    investors. Because of the non-standardized definitions, Non-GAAP Adjusted
    income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S.
    GAAP net income and its components and diluted EPS) may not be comparable
    to the calculation of similar measures of other companies. Non-GAAP
    Adjusted income and its components and Non-GAAP Adjusted diluted EPS are
    presented solely to permit investors to more fully understand how
    management assesses performance.
                                                                             
(5) Exclusive of amortization of intangible assets, except as discussed in
    footnote (6) below.
                                                                             
    Amortization expense related to finite-lived acquired intangible assets
    that contribute to our ability to sell, manufacture, research, market and
    distribute products, compounds and intellectual property is included in
(6) Amortization of intangible assets as these intangible assets benefit
    multiple business functions. Amortization expense related to intangible
    assets that are associated with a single function is included in Cost of
    sales, Selling, informational and administrative expenses or Research and
    development expenses, as appropriate.

Contact:

Pfizer Inc.
Media: Joan Campion, 212-733-2798
Investors: Suzanne Harnett, 212-733-8009
 
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