Delaware | 13-5315170 | ||||
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $.05 par value | PFE | New York Stock Exchange | ||||||||||||
0.250% Notes due 2022 | PFE22 | New York Stock Exchange | ||||||||||||
1.000% Notes due 2027 | PFE27 | New York Stock Exchange |
Yes | x | No |
☐
|
Yes | x | No |
☐
|
Yes | ☐ | No |
x
|
Page | |||||
Condensed Consolidated Statements of Income for the three and nine months ended September 27, 2020 and
September 29, 2019 |
|||||
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 27, 2020 and September 29, 2019
|
|||||
Condensed Consolidated Balance Sheets as of September 27, 2020 and December 31, 2019 | |||||
Condensed Consolidated Statements of Equity for the three and nine months ended September 27, 2020 and
September 29, 2019 |
|||||
Condensed Consolidated Statements of Cash Flows for the nine months ended September 27, 2020 and
September 29, 2019 |
|||||
Item 2.
|
|||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|||||
2019 Financial Report | Financial Report for the fiscal year ended December 31, 2019, which was filed as Exhibit 13 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 | ||||
2019 Form 10-K | Annual Report on Form 10-K for the fiscal year ended December 31, 2019 | ||||
ACA (Also referred to as U.S. Healthcare Legislation) | U.S. Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act | ||||
ACIP | Advisory Committee on Immunization Practices | ||||
ALK | anaplastic lymphoma kinase | ||||
Alliance revenues | Revenues from alliance agreements under which we co-promote products discovered or developed by other companies or us | ||||
Allogene | Allogene Therapeutics, Inc. | ||||
AML | Acute Myeloid Leukemia | ||||
Anacor | Anacor Pharmaceuticals, Inc. | ||||
Array | Array BioPharma Inc. | ||||
Astellas | Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc. | ||||
ATTR-CM | transthyretin amyloid cardiomyopathy | ||||
Bamboo | Bamboo Therapeutics, Inc. | ||||
BioNTech | BioNTech SE | ||||
Biopharma | Pfizer Biopharmaceuticals Group | ||||
BMS | Bristol-Myers Squibb Company | ||||
CDC | U.S. Centers for Disease Control and Prevention | ||||
cGMP | current Good Manufacturing Practices | ||||
CHMP | Committee for Medicinal Products for Human Use | ||||
COVID-19 | novel coronavirus disease of 2019 | ||||
Developed Europe |
Includes the following markets: Western Europe, Scandinavian countries and Finland
|
||||
Developed Markets | U.S., Developed Europe, Japan, Canada, South Korea, Australia and New Zealand | ||||
Developed Rest of World |
Includes the following markets: Japan, Canada, South Korea, Australia and New Zealand
|
||||
EMA | European Medicines Agency | ||||
Emerging Markets |
Includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe, Africa, the Middle East, Central Europe and Turkey
|
||||
EPS | earnings per share | ||||
EU | European Union | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FDA | U.S. Food and Drug Administration | ||||
FTC | U.S. Federal Trade Commission | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GIST | gastrointestinal stromal tumors | ||||
GPD | Global Product Development organization | ||||
GSK | GlaxoSmithKline plc | ||||
hGH-CTP | human growth hormone | ||||
Hospira | Hospira, Inc. | ||||
IBT | Income before tax | ||||
IPR&D | in-process research and development | ||||
IRS | U.S. Internal Revenue Service | ||||
IV | intravenous | ||||
J&J | Johnson & Johnson | ||||
JV | Joint Venture | ||||
King | King Pharmaceuticals LLC (formerly King Pharmaceuticals, Inc.) | ||||
LDL | low density lipoprotein | ||||
LIBOR | London Interbank Offered Rate | ||||
Lilly | Eli Lilly & Company | ||||
MCO | managed care organization | ||||
GLOSSARY OF DEFINED TERMS
- continued -
|
|||||
mCRC | metastatic colorectal cancer | ||||
mCRPC |
metastatic castration-resistant prostate cancer
|
||||
mCSPC |
metastatic castration-sensitive prostate cancer
|
||||
mRNA | messenger ribonucleic acid | ||||
MD&A | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
Medivation | Medivation LLC (formerly Medivation, Inc.) | ||||
Meridian | Meridian Medical Technologies, Inc. | ||||
Moody’s | Moody’s Investors Service | ||||
Mylan | Mylan N.V. | ||||
NDA | new drug application | ||||
nmCRPC |
non-metastatic castration-resistant prostate cancer
|
||||
NSCLC | non-small cell lung cancer | ||||
OPKO | OPKO Health, Inc. | ||||
PARP | poly ADP ribose polymerase | ||||
PBM | pharmacy benefit manager | ||||
Pharmacia | Pharmacia Corporation | ||||
PP&E | property, plant & equipment | ||||
PsA | psoriatic arthritis | ||||
Quarterly Report on Form 10-Q | Quarterly Report on Form 10-Q for the quarterly period ended September 27, 2020 | ||||
RA | rheumatoid arthritis | ||||
RCC | renal cell carcinoma | ||||
R&D | research and development | ||||
RNA | ribonucleic acid | ||||
Sandoz | Sandoz, Inc., a division of Novartis AG | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SI&A | selling, informational and administrative | ||||
S&P | Standard and Poor’s | ||||
TCJA | legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 | ||||
Therachon | Therachon Holding AG | ||||
UC | ulcerative colitis | ||||
U.K. | United Kingdom | ||||
U.S. | United States | ||||
Valneva | Valneva SE | ||||
ViiV | ViiV Healthcare Limited | ||||
VBP | Volume-based procurement | ||||
WRDM | Worldwide Research, Development and Medical |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) |
September 27,
2020 |
September 29,
2019 |
September 27,
2020 |
September 29,
2019 |
||||||||||||||||||||||
Revenues | $ | 12,131 | $ | 12,680 | $ | 35,961 | $ | 39,062 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Cost of sales(a)
|
2,529 | 2,602 | 7,188 | 7,611 | ||||||||||||||||||||||
Selling, informational and administrative expenses(a)
|
3,016 | 3,260 | 8,919 | 10,110 | ||||||||||||||||||||||
Research and development expenses(a)
|
2,360 | 2,283 | 6,216 | 5,827 | ||||||||||||||||||||||
Amortization of intangible assets | 898 | 1,212 | 2,688 | 3,578 | ||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
4 | 365 | 435 | 295 | ||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | (8,087) | (6) | (8,087) | ||||||||||||||||||||||
Other (income)/deductions––net
|
1,148 | 319 | 507 | 537 | ||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 2,176 | 10,727 | 10,014 | 19,190 | ||||||||||||||||||||||
Provision/(benefit) for taxes on income | (26) | 3,047 | 968 | 2,566 | ||||||||||||||||||||||
Income from continuing operations | 2,202 | 7,680 | 9,046 | 16,625 | ||||||||||||||||||||||
Discontinued operations––net of tax | — | 4 | — | 4 | ||||||||||||||||||||||
Net income before allocation to noncontrolling interests
|
2,202 | 7,684 | 9,046 | 16,628 | ||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 8 | 4 | 25 | 19 | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. | $ | 2,194 | $ | 7,680 | $ | 9,022 | $ | 16,609 | ||||||||||||||||||
Earnings per common share––basic:
|
||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.39 | $ | 1.38 | $ | 1.62 | $ | 2.98 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 0.39 | $ | 1.38 | $ | 1.62 | $ | 2.98 | ||||||||||||||||||
Earnings per common share––diluted:
|
||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.39 | $ | 1.36 | $ | 1.60 | $ | 2.92 | ||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 0.39 | $ | 1.36 | $ | 1.60 | $ | 2.92 | ||||||||||||||||||
Weighted-average shares––basic | 5,557 | 5,545 | 5,552 | 5,581 | ||||||||||||||||||||||
Weighted-average shares––diluted | 5,633 | 5,649 | 5,622 | 5,690 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
September 27,
2020 |
September 29,
2019 |
||||||||||||||||||||||
Net income before allocation to noncontrolling interests | $ | 2,202 | $ | 7,684 | $ | 9,046 | $ | 16,628 | ||||||||||||||||||
Foreign currency translation adjustments, net(a)
|
1,609 | (468) | 96 | (628) | ||||||||||||||||||||||
Reclassification adjustments | — | 268 | — | 270 | ||||||||||||||||||||||
1,609 | (200) | 96 | (358) | |||||||||||||||||||||||
Unrealized holding gains/(losses) on derivative financial instruments, net | (372) | 150 | (661) | 241 | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(b)
|
143 | (29) | (25) | (372) | ||||||||||||||||||||||
(230) | 122 | (685) | (131) | |||||||||||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities, net | 239 | 15 | 231 | 48 | ||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(c)
|
(85) | (7) | (25) | 30 | ||||||||||||||||||||||
155 | 8 | 205 | 77 | |||||||||||||||||||||||
Benefit plans: actuarial gains/(losses), net | (1,211) | (171) | (1,372) | (175) | ||||||||||||||||||||||
Reclassification adjustments related to amortization | 67 | 60 | 200 | 180 | ||||||||||||||||||||||
Reclassification adjustments related to settlements, net | 174 | 38 | 240 | 40 | ||||||||||||||||||||||
Other | (206) | 42 | (123) | 60 | ||||||||||||||||||||||
(1,177) | (31) | (1,055) | 105 | |||||||||||||||||||||||
Benefit plans: prior service (costs)/credits and other, net | — | — | — | (1) | ||||||||||||||||||||||
Reclassification adjustments related to amortization of prior service costs and other, net | (45) | (44) | (134) | (137) | ||||||||||||||||||||||
Reclassification adjustments related to curtailments of prior service costs and other, net | — | (46) | — | (46) | ||||||||||||||||||||||
Other | (3) | 3 | 1 | 4 | ||||||||||||||||||||||
(47) | (88) | (133) | (180) | |||||||||||||||||||||||
Other comprehensive income/(loss), before tax | 310 | (190) | (1,572) | (486) | ||||||||||||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss) | (262) | 84 | (527) | 50 | ||||||||||||||||||||||
Other comprehensive income/(loss) before allocation to noncontrolling interests | $ | 572 | $ | (275) | $ | (1,045) | $ | (536) | ||||||||||||||||||
Comprehensive income before allocation to noncontrolling interests | $ | 2,774 | $ | 7,409 | $ | 8,001 | $ | 16,092 | ||||||||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 11 | (6) | 16 | 8 | ||||||||||||||||||||||
Comprehensive income attributable to Pfizer Inc. | $ | 2,763 | $ | 7,415 | $ | 7,986 | $ | 16,084 |
(MILLIONS OF DOLLARS) |
September 27,
2020 |
December 31, 2019 | ||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 1,587 | $ | 1,305 | ||||||||||
Short-term investments | 8,912 | 8,525 | ||||||||||||
Restricted short-term investments | 11,413 | — | ||||||||||||
Trade accounts receivable, less allowance for doubtful accounts: 2020—$533; 2019—$527
|
10,012 | 8,724 | ||||||||||||
Inventories | 9,295 | 8,283 | ||||||||||||
Current tax assets | 4,000 | 3,344 | ||||||||||||
Other current assets | 2,519 | 2,622 | ||||||||||||
Total current assets | 47,739 | 32,803 | ||||||||||||
Equity-method investments | 15,949 | 17,133 | ||||||||||||
Long-term investments | 3,059 | 3,014 | ||||||||||||
Property, plant and equipment, less accumulated depreciation: 2020—$16,636; 2019—$16,789
|
14,403 | 13,967 | ||||||||||||
Identifiable intangible assets, less accumulated amortization | 30,927 | 35,370 | ||||||||||||
Goodwill | 59,902 | 58,653 | ||||||||||||
Noncurrent deferred tax assets and other noncurrent tax assets | 2,649 | 2,099 | ||||||||||||
Other noncurrent assets | 4,355 | 4,450 | ||||||||||||
Total assets | $ | 178,983 | $ | 167,489 | ||||||||||
Liabilities and Equity | ||||||||||||||
Short-term borrowings, including current portion of long-term debt: 2020—$2,149; 2019—$1,462
|
$ | 13,363 | $ | 16,195 | ||||||||||
Trade accounts payable | 4,141 | 4,220 | ||||||||||||
Dividends payable | 2,112 | 2,104 | ||||||||||||
Income taxes payable | 1,430 | 980 | ||||||||||||
Accrued compensation and related items | 2,425 | 2,720 | ||||||||||||
Other current liabilities | 10,683 | 11,083 | ||||||||||||
Total current liabilities | 34,154 | 37,304 | ||||||||||||
Long-term debt | 49,785 | 35,955 | ||||||||||||
Pension benefit obligations, net | 5,350 | 5,638 | ||||||||||||
Postretirement benefit obligations, net | 1,087 | 1,124 | ||||||||||||
Noncurrent deferred tax liabilities | 4,542 | 5,578 | ||||||||||||
Other taxes payable | 11,720 | 12,126 | ||||||||||||
Other noncurrent liabilities | 6,851 | 6,317 | ||||||||||||
Total liabilities | 113,487 | 104,042 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Preferred stock | — | 17 | ||||||||||||
Common stock | 470 | 468 | ||||||||||||
Additional paid-in capital | 88,161 | 87,428 | ||||||||||||
Treasury stock | (110,980) | (110,801) | ||||||||||||
Retained earnings | 100,284 | 97,670 | ||||||||||||
Accumulated other comprehensive loss | (12,676) | (11,640) | ||||||||||||
Total Pfizer Inc. shareholders’ equity | 65,259 | 63,143 | ||||||||||||
Equity attributable to noncontrolling interests | 236 | 303 | ||||||||||||
Total equity | 65,495 | 63,447 | ||||||||||||
Total liabilities and equity | $ | 178,983 | $ | 167,489 |
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PREFERRED SHARES)
|
Shares | Stated Value | Shares | Par Value |
Add’l
Paid-In Capital |
Shares | Cost | Retained Earnings |
Accum. Other Comp.
Loss |
Share-
holders’ Equity |
Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 28, 2020
|
— | $ | — | 9,394 | $ | 470 | $ | 87,886 | (3,840) | $ | (110,978) | $ | 100,203 | $ | (13,246) | $ | 64,336 | $ | 228 | $ | 64,564 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 2,194 | 2,194 | 8 | 2,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
569 | 569 | 3 | 572 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(2,113) | (2,113) | (2,113) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
3 | — | 275 | — | (2) | 273 | 273 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 27, 2020 | — | $ | — | 9,397 | $ | 470 | $ | 88,161 | (3,840) | $ | (110,980) | $ | 100,284 | $ | (12,676) | $ | 65,259 | $ | 236 | $ | 65,495 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PREFERRED SHARES)
|
Shares | Stated Value | Shares | Par Value |
Add’l
Paid-In Capital |
Shares | Cost | Retained Earnings |
Accum. Other Comp.
Loss |
Share-
holders’ Equity |
Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2019 | 458 | $ | 18 | 9,363 | $ | 468 | $ | 86,963 | (3,801) | $ | (110,786) | $ | 94,440 | $ | (11,535) | $ | 59,568 | $ | 357 | $ | 59,924 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 7,680 | 7,680 | 4 | 7,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
(265) | (265) | (9) | (275) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(2,006) | (2,006) | (2,006) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
3 | — | 136 | — | (8) | 128 | 128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
(34) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions
|
(8) | — | — | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (61) | (61) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 29, 2019
|
449 | $ | 18 | 9,366 | $ | 468 | $ | 87,099 | (3,835) | $ | (110,795) | $ | 100,113 | $ | (11,801) | $ | 65,103 | $ | 293 | $ | 65,396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PREFERRED SHARES)
|
Shares | Stated Value | Shares | Par Value |
Add’l
Paid-In Capital |
Shares | Cost | Retained Earnings |
Accum. Other Comp.
Loss |
Share-
holders’ Equity |
Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020
|
431 | $ | 17 | 9,369 | $ | 468 | $ | 87,428 | (3,835) | $ | (110,801) | $ | 97,670 | $ | (11,640) | $ | 63,143 | $ | 303 | $ | 63,447 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 9,022 | 9,022 | 25 | 9,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
(1,036) | (1,036) | (9) | (1,045) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(6,408) | (6,408) | (6,408) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (81) | (81) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
28 | 1 | 748 | (6) | (210) | 539 | 539 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions(a)
|
(431) | (17) | (15) | 1 | 31 | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 27, 2020
|
— | $ | — | 9,397 | $ | 470 | $ | 88,161 | (3,840) | $ | (110,980) | $ | 100,284 | $ | (12,676) | $ | 65,259 | $ | 236 | $ | 65,495 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PREFERRED SHARES)
|
Shares | Stated Value | Shares | Par Value |
Add’l
Paid-In Capital |
Shares | Cost | Retained Earnings |
Accum. Other Comp.
Loss |
Share-
holders’ Equity |
Non-controlling interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2019
|
478 | $ | 19 | 9,332 | $ | 467 | $ | 86,253 | (3,615) | $ | (101,610) | $ | 89,554 | $ | (11,275) | $ | 63,407 | $ | 351 | $ | 63,758 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 16,609 | 16,609 | 19 | 16,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
(525) | (525) | (11) | (536) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(6,068) | (6,068) | (6,068) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
(1) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (5) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
34 | 2 | 848 | (7) | (320) | 530 | 530 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
(213) | (8,865) | (8,865) | (8,865) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions
|
(28) | (1) | (2) | — | — | (3) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 19 | 19 | (61) | (42) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 29, 2019
|
449 | $ | 18 | 9,366 | $ | 468 | $ | 87,099 | (3,835) | $ | (110,795) | $ | 100,113 | $ | (11,801) | $ | 65,103 | $ | 293 | $ | 65,396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
||||||||||||
Operating Activities | ||||||||||||||
Net income before allocation to noncontrolling interests | $ | 9,046 | $ | 16,628 | ||||||||||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 3,731 | 4,626 | ||||||||||||
Asset write-offs and impairments | 990 | 224 | ||||||||||||
TCJA impact | — | (319) | ||||||||||||
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed(a)
|
(6) | (8,233) | ||||||||||||
Deferred taxes from continuing operations | (597) | 2,067 | ||||||||||||
Share-based compensation expense | 492 | 448 | ||||||||||||
Benefit plan contributions in excess of expense/income | (1,643) | (429) | ||||||||||||
Other adjustments, net | (156) | (622) | ||||||||||||
Other changes in assets and liabilities, net of acquisitions and divestitures | (3,080) | (5,571) | ||||||||||||
Net cash provided by operating activities | 8,778 | 8,819 | ||||||||||||
Investing Activities | ||||||||||||||
Purchases of property, plant and equipment | (1,467) | (1,504) | ||||||||||||
Purchases of short-term investments | (9,309) | (4,583) | ||||||||||||
Proceeds from redemptions/sales of short-term investments | 8,397 | 7,766 | ||||||||||||
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less | (10,741) | 8,307 | ||||||||||||
Purchases of long-term investments | (284) | (134) | ||||||||||||
Proceeds from redemptions/sales of long-term investments | 648 | 116 | ||||||||||||
Acquisition of business, net of cash acquired | — | (10,861) | ||||||||||||
Acquisitions of intangible assets | (38) | (364) | ||||||||||||
Other investing activities, net(a)
|
194 | 145 | ||||||||||||
Net cash used in investing activities | (12,601) | (1,112) | ||||||||||||
Financing Activities | ||||||||||||||
Proceeds from short-term borrowings | 12,352 | 11,582 | ||||||||||||
Principal payments on short-term borrowings | (17,449) | (4,088) | ||||||||||||
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less
|
1,628 | 2,604 | ||||||||||||
Proceeds from issuance of long-term debt | 16,700 | 4,942 | ||||||||||||
Principal payments on long-term debt | (2,511) | (5,806) | ||||||||||||
Purchases of common stock | — | (8,865) | ||||||||||||
Cash dividends paid | (6,328) | (6,051) | ||||||||||||
Proceeds from exercise of stock options | 206 | 303 | ||||||||||||
Other financing activities, net | (460) | (667) | ||||||||||||
Net cash provided by/(used in) financing activities | 4,138 | (6,045) | ||||||||||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents
|
(39) | (41) | ||||||||||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 277 | 1,620 | ||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period
|
1,350 | 1,225 | ||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at end of period
|
$ | 1,627 | $ | 2,846 | ||||||||||
‘- continued -
|
||||||||||||||
See Notes to Condensed Consolidated Financial Statements. | ||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||
Non-cash transactions: | ||||||||||||||
32% equity-method investment in GSK Consumer Healthcare JV in exchange for contributing Pfizer’s Consumer Healthcare business(a)
|
$ | — | $ | 15,711 | ||||||||||
Cash paid (received) during the period for: | ||||||||||||||
Income taxes
|
2,445 | 2,636 | ||||||||||||
Interest paid
|
1,297 | 1,246 | ||||||||||||
Interest rate hedges
|
(45) | (78) |
(MILLIONS OF DOLLARS) | September 27, 2020 | December 31, 2019 | ||||||||||||
Reserve against Trade accounts receivable, less allowance for doubtful accounts
|
$ | 1,126 | $ | 1,257 | ||||||||||
Other current liabilities:
|
||||||||||||||
Accrued rebates | 3,270 | 3,285 | ||||||||||||
Other accruals | 573 | 581 | ||||||||||||
Other noncurrent liabilities
|
622 | 565 | ||||||||||||
Total accrued rebates and other accruals | $ | 5,591 | $ | 5,689 |
(MILLIONS OF DOLLARS) | Three Months Ended June 30, 2020 |
Nine Months Ended
June 30, 2020 |
||||||||||||
Net sales | $ | 2,927 | $ | 9,618 | ||||||||||
Cost of sales | (1,061) | (4,266) | ||||||||||||
Gross profit | $ | 1,866 | $ | 5,352 | ||||||||||
Income from continuing operations | 524 | 995 | ||||||||||||
Net income | 524 | 995 | ||||||||||||
Income attributable to shareholders | 518 | 959 |
Additional information about the intangible assets that were impaired during 2020 in Other (income)/deductions follows:
|
||||||||||||||||||||||||||||||||
Fair Value(a)
|
Nine Months Ended September 27, 2020 | |||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amount | Level 1 | Level 2 | Level 3 | Impairment | |||||||||||||||||||||||||||
Intangible assets––IPR&D(b)
|
$ | 1,100 | $ | — | $ | — | $ | 1,100 | $ | 900 | ||||||||||||||||||||||
The following summarizes the changes, net of tax, in Accumulated other comprehensive loss:
|
||||||||||||||||||||||||||||||||||||||
Net Unrealized Gains/(Losses) | Benefit Plans | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Foreign Currency Translation Adjustments | Derivative Financial Instruments | Available-For-Sale Securities | Actuarial Gains/(Losses) | Prior Service (Costs)/Credits and Other | Accumulated Other Comprehensive Income/(Loss) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | (5,952) | $ | 20 | $ | (35) | $ | (6,257) | $ | 584 | $ | (11,640) | ||||||||||||||||||||||||||
Other comprehensive income/(loss)(a)
|
249 | (546) | 179 | (817) | (102) | (1,036) | ||||||||||||||||||||||||||||||||
Balance, September 27, 2020 | $ | (5,703) | $ | (526) | $ | 144 | $ | (7,074) | $ | 482 | $ | (12,676) |
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||||||||
Classified as equity securities with readily determinable fair values: | ||||||||||||||||||||||||||||||||||||||||||||
Money market funds(a)
|
$ | 12,273 | $ | — | $ | 12,273 | $ | 705 | $ | — | $ | 705 | ||||||||||||||||||||||||||||||||
Classified as available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—non-U.S.
|
5,906 | — | 5,906 | 4,863 | — | 4,863 | ||||||||||||||||||||||||||||||||||||||
Government and agency—U.S.
|
582 | — | 582 | 811 | — | 811 | ||||||||||||||||||||||||||||||||||||||
Corporate and other
|
1,371 | — | 1,371 | 1,013 | — | 1,013 | ||||||||||||||||||||||||||||||||||||||
7,859 | — | 7,859 | 6,687 | — | 6,687 | |||||||||||||||||||||||||||||||||||||||
Total short-term investments | 20,132 | — | 20,132 | 7,392 | — | 7,392 | ||||||||||||||||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts
|
16 | — | 16 | 53 | — | 53 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
321 | — | 321 | 413 | — | 413 | ||||||||||||||||||||||||||||||||||||||
Total other current assets | 337 | — | 337 | 465 | — | 465 | ||||||||||||||||||||||||||||||||||||||
Long-term investments | ||||||||||||||||||||||||||||||||||||||||||||
Classified as equity securities with readily determinable fair values(b)
|
2,092 | 2,063 | 28 | 1,902 | 1,863 | 39 | ||||||||||||||||||||||||||||||||||||||
Classified as available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—U.S.
|
142 | — | 142 | 303 | — | 303 | ||||||||||||||||||||||||||||||||||||||
Corporate and other
|
7 | — | 7 | 11 | — | 11 | ||||||||||||||||||||||||||||||||||||||
149 | — | 149 | 315 | — | 315 | |||||||||||||||||||||||||||||||||||||||
Total long-term investments | 2,241 | 2,063 | 178 | 2,216 | 1,863 | 354 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts
|
131 | — | 131 | 266 | — | 266 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
100 | — | 100 | 261 | — | 261 | ||||||||||||||||||||||||||||||||||||||
Total derivative assets | 231 | — | 231 | 526 | — | 526 | ||||||||||||||||||||||||||||||||||||||
Insurance contracts(c)
|
626 | — | 626 | 575 | — | 575 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent assets | 857 | — | 857 | 1,102 | — | 1,102 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 23,567 | $ | 2,063 | $ | 21,504 | $ | 11,176 | $ | 1,863 | $ | 9,313 | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
$ | 464 | $ | — | $ | 464 | $ | 114 | $ | — | $ | 114 | ||||||||||||||||||||||||||||||||
Total other current liabilities | 464 | — | 464 | 114 | — | 114 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
808 | — | 808 | 604 | — | 604 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent liabilities | 808 | — | 808 | 604 | — | 604 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,272 | $ | — | $ | 1,272 | $ | 718 | $ | — | $ | 718 |
The following summarizes the financial liabilities not measured at fair value on a recurring basis, including the carrying values and estimated fair values using a market approach: | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Total | Level 2 | Total | Level 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, excluding the current portion(a)
|
$ | 49,785 | $ | 59,073 | $ | 59,073 | $ | 35,955 | $ | 40,842 | $ | 40,842 |
At September 27, 2020, our investment securities portfolio consisted of debt securities that were virtually all investment-grade. Information on investments in debt securities at September 27, 2020 and December 31, 2019 is as follows, including the contractual maturities, or as necessary, the estimated maturities, of the available-for-sale and held-to-maturity debt securities as of September 27, 2020: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Maturities (in Years) | Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Amortized Cost | Gains | Losses | Fair Value | Within 1 |
Over 1
to 5 |
Over 5 | Total | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––non-U.S.
|
$ | 5,743 | $ | 164 | $ | (1) | $ | 5,906 | $ | 5,906 | $ | — | $ | — | $ | 5,906 | $ | 4,895 | $ | 6 | $ | (38) | $ | 4,863 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––U.S.
|
726 | — | (1) | 725 | 582 | 142 | — | 725 | 1,120 | — | (6) | 1,114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other(a)
|
1,379 | 3 | (5) | 1,378 | 1,371 | 7 | — | 1,378 | 1,027 | — | (2) | 1,025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity debt securities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits and other
|
290 | — | — | 290 | 258 | 10 | 23 | 290 | 535 | — | — | 535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––non-U.S.
|
70 | — | — | 70 | 65 | — | 5 | 70 | 803 | — | — | 803 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities | $ | 8,208 | $ | 168 | $ | (7) | $ | 8,369 | $ | 8,182 | $ | 159 | $ | 28 | $ | 8,369 | $ | 8,380 | $ | 6 | $ | (47) | $ | 8,340 |
Short-term borrowings include: | ||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
December 31, 2019 | ||||||||||||
Commercial paper | $ | 10,990 | $ | 13,915 | ||||||||||
Current portion of long-term debt, principal amount | 2,152 | 1,458 | ||||||||||||
Other short-term borrowings, principal amount(a)
|
226 | 860 | ||||||||||||
Total short-term borrowings, principal amount
|
13,367 | 16,233 | ||||||||||||
Net fair value adjustments related to hedging and purchase accounting | — | 5 | ||||||||||||
Net unamortized discounts, premiums and debt issuance costs | (4) | (43) | ||||||||||||
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
|
$ | 13,363 | $ | 16,195 |
In the second quarter of 2020, we issued the following senior unsecured notes: | ||||||||||||||
(MILLIONS OF DOLLARS) | ||||||||||||||
Principal | ||||||||||||||
Interest Rate | Maturity Date |
As of
September 27, 2020 |
||||||||||||
Pfizer Inc.(a)
|
||||||||||||||
0.800% | May 28, 2025 | $ | 750 | |||||||||||
1.700% | May 28, 2030 | 1,000 | ||||||||||||
2.550% | May 28, 2040 | 1,000 | ||||||||||||
2.700% | May 28, 2050 | 1,250 | ||||||||||||
$ | 4,000 | |||||||||||||
Upjohn Inc., a wholly-owned subsidiary of Pfizer Inc.(b)
|
||||||||||||||
1.125% | June 22, 2022 | $ | 1,000 | |||||||||||
1.650% | June 22, 2025 | 750 | ||||||||||||
2.300% | June 22, 2027 | 750 | ||||||||||||
2.700% | June 22, 2030 | 1,450 | ||||||||||||
3.850% | June 22, 2040 | 1,500 | ||||||||||||
4.000% | June 22, 2050 | 2,000 | ||||||||||||
$ | 7,450 | |||||||||||||
Upjohn Finance B.V., a wholly-owned subsidiary of Upjohn Inc.(b)
|
||||||||||||||
0.816% | June 23, 2022 | € | 750 | |||||||||||
1.023% | June 23, 2024 | 750 | ||||||||||||
1.362% | June 23, 2027 | 850 | ||||||||||||
1.908% | June 23, 2032 | 1,250 | ||||||||||||
€ | 3,600 |
The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt: | ||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
December 31, 2019 | ||||||||||||
Total long-term debt, principal amount(a)
|
$ | 48,473 | $ | 34,820 | ||||||||||
Net fair value adjustments related to hedging and purchase accounting | 1,621 | 1,305 | ||||||||||||
Net unamortized discounts, premiums and debt issuance costs | (314) | (176) | ||||||||||||
Other long-term debt | 5 | 5 | ||||||||||||
Total long-term debt, carried at historical proceeds, as adjusted | $ | 49,785 | $ | 35,955 | ||||||||||
Current portion of long-term debt, carried at historical proceeds, as adjusted (not included above)
|
$ | 2,149 | $ | 1,462 |
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk: | ||||||||||||||||||||||||||||||||||||||
Amount of
Gains/(Losses) Recognized in OID(a) |
Amount of
Gains/(Losses)
Recognized in OCI(a), (b) |
Amount of Gains/(Losses)
Reclassified from OCI into OID and COS(a) |
||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(c)
|
$ | — | $ | — | $ | (379) | $ | 131 | $ | (149) | $ | 7 | ||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach(d)
|
— | — | 7 | 21 | 7 | 22 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Fair Value Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Interest rate contracts
|
(9) | 378 | — | — | — | — | ||||||||||||||||||||||||||||||||
Hedged item
|
9 | (378) | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
— | — | (257) | 112 | — | — | ||||||||||||||||||||||||||||||||
The portion on foreign exchange contracts excluded from the assessment of hedge effectiveness(d)
|
— | — | 9 | 43 | 38 | 45 | ||||||||||||||||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign currency short-term borrowings(e)
|
— | — | — | 45 | — | — | ||||||||||||||||||||||||||||||||
Foreign currency long-term debt(e)
|
— | — | (72) | 79 | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
255 | (77) | — | — | — | — | ||||||||||||||||||||||||||||||||
All other net(d)
|
— | — | — | (1) | — | — | ||||||||||||||||||||||||||||||||
$ | 255 | $ | (77) | $ | (692) | $ | 429 | $ | (104) | $ | 74 | |||||||||||||||||||||||||||
Amount of
Gains/(Losses)
Recognized in OID(a)
|
Amount of
Gains/(Losses)
Recognized in OCI(a), (b)
|
Amount of Gains/(Losses)
Reclassified from
OCI into OID and COS(a)
|
||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | ||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Cash Flow Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(c)
|
$ | — | $ | — | $ | (721) | $ | 137 | $ | (23) | $ | 265 | ||||||||||||||||||||||||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach(d)
|
— | — | 49 | 105 | 48 | 108 | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Fair Value Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Interest rate contracts
|
383 | 1,191 | — | — | — | — | ||||||||||||||||||||||||||||||||
Hedged item
|
(383) | (1,191) | — | — | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments in Net Investment Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
— | — | (17) | 87 | — | — | ||||||||||||||||||||||||||||||||
The portion of foreign exchange contracts excluded from the assessment of hedge effectiveness(d)
|
— | — | 185 | 136 | 122 | 99 | ||||||||||||||||||||||||||||||||
Non-Derivative Financial Instruments in Net Investment Hedge Relationships:
|
||||||||||||||||||||||||||||||||||||||
Foreign currency short-term borrowings(e)
|
— | — | 8 | 65 | — | — | ||||||||||||||||||||||||||||||||
Foreign currency long-term debt(e)
|
— | — | (69) | 89 | — | — | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedges:
|
||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
205 | (201) | — | — | — | — | ||||||||||||||||||||||||||||||||
All other net(d)
|
— | — | 12 | — | (1) | — | ||||||||||||||||||||||||||||||||
$ | 205 | $ | (201) | $ | (553) | $ | 617 | $ | 147 | $ | 472 |
The following summarizes the amounts recorded in our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges:
|
||||||||||||||||||||||||||||||||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount |
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to
Carrying Amount |
|||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
Carrying Amount of Hedged Assets/Liabilities(a)
|
Active Hedging Relationships | Discontinued Hedging Relationships |
Carrying Amount of Hedged Assets/Liabilities(a)
|
Active Hedging Relationships | Discontinued Hedging Relationships | ||||||||||||||||||||||||||||||||
Short-term investments | $ | 45 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Long-term investments | — | — | — | 45 | — | — | ||||||||||||||||||||||||||||||||
Long-term debt | 2,019 | 131 | 1,165 | 7,092 | 266 | 690 |
The following summarizes the components of Inventories:
|
||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
December 31, 2019 | ||||||||||||
Finished goods | $ | 3,521 | $ | 2,750 | ||||||||||
Work-in-process | 5,014 | 4,743 | ||||||||||||
Raw materials and supplies | 760 | 790 | ||||||||||||
Inventories(a)
|
$ | 9,295 | $ | 8,283 | ||||||||||
Noncurrent inventories not included above(b)
|
$ | 948 | $ | 714 |
The following summarizes the components of Identifiable intangible assets:
|
||||||||||||||||||||||||||||||||||||||
September 27, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
Gross
Carrying Amount |
Accumulated
Amortization |
Identifiable
Intangible Assets, less Accumulated Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
Identifiable
Intangible Assets, less Accumulated Amortization |
||||||||||||||||||||||||||||||||
Finite-lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Developed technology rights(a)
|
$ | 90,052 | $ | (66,212) | $ | 23,840 | $ | 88,730 | $ | (63,106) | $ | 25,625 | ||||||||||||||||||||||||||
Brands | 922 | (766) | 156 | 922 | (741) | 181 | ||||||||||||||||||||||||||||||||
Licensing agreements and other(b)
|
2,385 | (1,238) | 1,146 | 1,772 | (1,191) | 582 | ||||||||||||||||||||||||||||||||
93,358 | (68,216) | 25,142 | 91,425 | (65,037) | 26,387 | |||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Brands | 1,991 | 1,991 | 1,991 | 1,991 | ||||||||||||||||||||||||||||||||||
IPR&D(c)
|
3,221 | 3,221 | 5,919 | 5,919 | ||||||||||||||||||||||||||||||||||
Licensing agreements and other(b)
|
573 | 573 | 1,073 | 1,073 | ||||||||||||||||||||||||||||||||||
5,785 | 5,785 | 8,983 | 8,983 | |||||||||||||||||||||||||||||||||||
Identifiable intangible assets(d)
|
$ | 99,143 | $ | (68,216) | $ | 30,927 | $ | 100,408 | $ | (65,037) | $ | 35,370 |
The following summarizes the components and changes in the carrying amount of Goodwill:
|
||||||||||||||||||||
(MILLIONS OF DOLLARS) | Biopharma | Upjohn | Total | |||||||||||||||||
Balance, December 31, 2019 | $ | 48,202 | $ | 10,451 | $ | 58,653 | ||||||||||||||
Additions(a)
|
727 | — | 727 | |||||||||||||||||
Other(b)
|
420 | 102 | 522 | |||||||||||||||||
Balance, September 27, 2020 | $ | 49,349 | $ | 10,553 | $ | 59,902 |
The following summarizes the components of net periodic benefit cost/(credit): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Qualified |
U.S. Supplemental
(Non-Qualified) |
International |
Postretirement
Plans |
|||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||
Service cost
|
$ | — | $ | — | $ | — | $ | — | $ | 36 | $ | 31 | $ | 10 | $ | 9 | ||||||||||||||||||||||||||||||||||
Interest cost
|
131 | 157 | 9 | 12 | 40 | 53 | 13 | 19 | ||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets
|
(251) | (222) | — | — | (75) | (79) | (9) | (8) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial losses
|
32 | 37 | 4 | 2 | 31 | 20 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Prior service credits
|
(1) | (1) | — | — | (1) | (1) | (43) | (43) | ||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | — | — | — | (47) | ||||||||||||||||||||||||||||||||||||||||||
Settlements | 171 | 1 | 3 | 22 | 1 | 12 | — | (10) | ||||||||||||||||||||||||||||||||||||||||||
Special termination benefits
|
— | 3 | — | 5 | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(credit) reported in income
|
$ | 82 | $ | (25) | $ | 15 | $ | 41 | $ | 32 | $ | 37 | $ | (30) | $ | (78) | ||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Qualified |
U.S. Supplemental
(Non-Qualified) |
International |
Postretirement
Plans |
|||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||
Service cost
|
$ | — | $ | — | $ | — | $ | — | $ | 108 | $ | 94 | $ | 29 | $ | 28 | ||||||||||||||||||||||||||||||||||
Interest cost
|
393 | 472 | 26 | 37 | 122 | 162 | 38 | 57 | ||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets
|
(754) | (667) | — | — | (228) | (239) | (27) | (25) | ||||||||||||||||||||||||||||||||||||||||||
Amortization of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial losses
|
96 | 110 | 11 | 7 | 93 | 61 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
Prior service credits
|
(2) | (2) | — | (1) | (2) | (3) | (129) | (132) | ||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | — | — | — | (47) | ||||||||||||||||||||||||||||||||||||||||||
Settlements | 191 | 3 | 47 | 21 | 2 | 12 | — | (10) | ||||||||||||||||||||||||||||||||||||||||||
Special termination benefits
|
— | 4 | 2 | 14 | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(credit) reported in income
|
$ | (77) | $ | (80) | $ | 85 | $ | 78 | $ | 96 | $ | 88 | $ | (89) | $ | (124) |
The following presents quarterly cash dividends: | ||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||
Date
Declared |
Payment
Date |
Dividend Per
Share |
Date
Declared |
Payment
Date |
Dividend Per Share | |||||||||||||||||||||||||||
December 13, 2019 | March 6, 2020 | $ | 0.38 | December 14, 2018 | March 1, 2019 | $ | 0.36 | |||||||||||||||||||||||||
April 23, 2020 | June 5, 2020 | 0.38 | April 25, 2019 | June 7, 2019 | 0.36 | |||||||||||||||||||||||||||
June 25, 2020 | September 1, 2020 | 0.38 | June 27, 2019 | September 3, 2019 | 0.36 | |||||||||||||||||||||||||||
September 24, 2020 | December 1, 2020 | 0.38 | September 24, 2019 | December 2, 2019 | 0.36 |
The following presents the detailed calculation of EPS:
|
||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(IN MILLIONS) |
September 27,
2020 |
September 29,
2019 |
September 27,
2020 |
September 29,
2019 |
||||||||||||||||||||||
EPS Numerator––Basic | ||||||||||||||||||||||||||
Income from continuing operations
|
$ | 2,202 | $ | 7,680 | $ | 9,046 | $ | 16,625 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
8 | 4 | 25 | 19 | ||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc.
|
2,194 | 7,676 | 9,022 | 16,606 | ||||||||||||||||||||||
Less: Preferred stock dividends––net of tax
|
— | — | — | 1 | ||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
2,194 | 7,676 | 9,021 | 16,605 | ||||||||||||||||||||||
Discontinued operations––net of tax
|
— | 4 | — | 4 | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 2,194 | $ | 7,680 | $ | 9,021 | $ | 16,609 | ||||||||||||||||||
EPS Numerator––Diluted | ||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions
|
$ | 2,194 | $ | 7,676 | $ | 9,022 | $ | 16,606 | ||||||||||||||||||
Discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions
|
— | 4 | — | 4 | ||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions
|
$ | 2,194 | $ | 7,680 | $ | 9,022 | $ | 16,609 | ||||||||||||||||||
EPS Denominator | ||||||||||||||||||||||||||
Weighted-average number of common shares outstanding––Basic
|
5,557 | 5,545 | 5,552 | 5,581 | ||||||||||||||||||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock
|
76 | 104 | 70 | 110 | ||||||||||||||||||||||
Weighted-average number of common shares outstanding––Diluted
|
5,633 | 5,649 | 5,622 | 5,690 | ||||||||||||||||||||||
Anti-dilutive common stock equivalents(a)
|
7 | 3 | 5 | 2 |
(MILLIONS OF DOLLARS) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | |||||||||||||||||||||||||||
TOTAL REVENUES | $ | 12,131 | $ | 12,680 | $ | 35,961 | $ | 39,062 | ||||||||||||||||||||||||
PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA)
|
$ | 10,215 | $ | 9,952 | $ | 30,017 | $ | 28,429 | ||||||||||||||||||||||||
Internal Medicine(a)
|
$ | 2,085 | $ | 2,128 | $ | 6,695 | $ | 6,508 | ||||||||||||||||||||||||
Eliquis alliance revenues and direct sales
|
Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism
|
1,114 | 1,025 | 3,686 | 3,121 | |||||||||||||||||||||||||||
Chantix/Champix
|
An aid to smoking cessation treatment in adults 18 years of age or older
|
223 | 276 | 728 | 825 | |||||||||||||||||||||||||||
Premarin family
|
Symptoms of menopause | 168 | 182 | 471 | 542 | |||||||||||||||||||||||||||
BMP2
|
Development of bone and cartilage | 70 | 66 | 197 | 212 | |||||||||||||||||||||||||||
Toviaz
|
Overactive bladder | 59 | 61 | 183 | 186 | |||||||||||||||||||||||||||
All other Internal Medicine
|
Various | 451 | 517 | 1,429 | 1,621 | |||||||||||||||||||||||||||
Oncology | $ | 2,761 | $ | 2,350 | $ | 7,843 | $ | 6,547 | ||||||||||||||||||||||||
Ibrance
|
Metastatic breast cancer | 1,357 | 1,283 | 3,955 | 3,677 | |||||||||||||||||||||||||||
Xtandi alliance revenues
|
mCRPC, nmCRPC, mCSPC | 266 | 225 | 741 | 594 | |||||||||||||||||||||||||||
Sutent
|
Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor | 202 | 224 | 616 | 704 | |||||||||||||||||||||||||||
Inlyta
|
Advanced RCC | 195 | 139 | 559 | 316 | |||||||||||||||||||||||||||
Xalkori
|
ALK-positive and ROS1-positive advanced NSCLC | 122 | 130 | 409 | 385 | |||||||||||||||||||||||||||
Bosulif
|
Philadelphia chromosome–positive chronic myelogenous leukemia | 111 | 90 | 324 | 267 | |||||||||||||||||||||||||||
Retacrit(b)
|
Anemia | 102 | 64 | 278 | 147 | |||||||||||||||||||||||||||
Lorbrena |
ALK-positive metastatic NSCLC
|
55 | 32 | 142 | 77 | |||||||||||||||||||||||||||
Braftovi
|
In combination with Mektovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation and, in combination with Erbitux® (cetuximab), for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy
|
42 | 18 | 116 | 18 | |||||||||||||||||||||||||||
Mektovi
|
In combination with Braftovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation | 34 | 19 | 103 | 19 |
(MILLIONS OF DOLLARS) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | |||||||||||||||||||||||||||
Ruxience(b)
|
Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis
|
59 | — | 78 | — | |||||||||||||||||||||||||||
All other Oncology
|
Various | 217 | 125 | 522 | 342 | |||||||||||||||||||||||||||
Hospital(a), (c)
|
$ | 1,728 | $ | 1,840 | $ | 5,535 | $ | 5,505 | ||||||||||||||||||||||||
Sulperazon
|
Bacterial infections | 143 | 163 | 432 | 505 | |||||||||||||||||||||||||||
Medrol
|
Anti-inflammatory glucocorticoid | 87 | 109 | 295 | 348 | |||||||||||||||||||||||||||
Zithromax
|
Bacterial infections | 25 | 77 | 218 | 254 | |||||||||||||||||||||||||||
Precedex
|
Sedation agent in surgery or intensive care | 55 | 36 | 211 | 116 | |||||||||||||||||||||||||||
Vfend
|
Fungal infections | 52 | 87 | 201 | 265 | |||||||||||||||||||||||||||
Panzyga
|
Primary humoral immunodeficiency | 62 | 46 | 199 | 107 | |||||||||||||||||||||||||||
Fragmin | Treatment/prevention of venous thromboembolism | 60 | 62 | 178 | 185 | |||||||||||||||||||||||||||
Zyvox
|
Bacterial infections | 51 | 61 | 176 | 195 | |||||||||||||||||||||||||||
Pfizer CentreOne(d)
|
Various | 242 | 176 | 618 | 556 | |||||||||||||||||||||||||||
All other Anti-infectives
|
Various
|
384 | 434 | 1,195 | 1,260 | |||||||||||||||||||||||||||
All other Hospital(c)
|
Various
|
568 | 589 | 1,813 | 1,713 | |||||||||||||||||||||||||||
Vaccines | $ | 1,717 | $ | 1,808 | $ | 4,574 | $ | 4,795 | ||||||||||||||||||||||||
Prevnar 13/Prevenar 13
|
Pneumococcal disease | 1,534 | 1,603 | 4,100 | 4,268 | |||||||||||||||||||||||||||
Nimenrix |
Meningococcal disease
|
50 | 52 | 180 | 159 | |||||||||||||||||||||||||||
FSME/IMMUN-TicoVac | Tick-borne encephalitis disease | 77 | 64 | 170 | 197 | |||||||||||||||||||||||||||
All other Vaccines
|
Various
|
56 | 89 | 124 | 171 | |||||||||||||||||||||||||||
Inflammation & Immunology (I&I) | $ | 1,173 | $ | 1,226 | $ | 3,299 | $ | 3,482 | ||||||||||||||||||||||||
Xeljanz
|
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis
|
654 | 599 | 1,741 | 1,634 | |||||||||||||||||||||||||||
Enbrel (Outside the U.S. and Canada)
|
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
|
321 | 415 | 1,005 | 1,285 | |||||||||||||||||||||||||||
Inflectra/Remsima(b)
|
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
|
162 | 155 | 471 | 446 | |||||||||||||||||||||||||||
All other I&I
|
Various | 35 | 58 | 83 | 116 | |||||||||||||||||||||||||||
Rare Disease | $ | 752 | $ | 601 | $ | 2,071 | $ | 1,592 | ||||||||||||||||||||||||
Vyndaqel/Vyndamax
|
ATTR-cardiomyopathy and polyneuropathy | 351 | 156 | 859 | 259 | |||||||||||||||||||||||||||
BeneFIX
|
Hemophilia B | 107 | 125 | 337 | 372 | |||||||||||||||||||||||||||
Genotropin
|
Replacement of human growth hormone | 107 | 124 | 316 | 357 | |||||||||||||||||||||||||||
Refacto AF/Xyntha
|
Hemophilia A | 92 | 104 | 272 | 319 | |||||||||||||||||||||||||||
Somavert
|
Acromegaly | 67 | 64 | 198 | 192 | |||||||||||||||||||||||||||
All other Rare Disease | Various | 27 | 28 | 89 | 94 | |||||||||||||||||||||||||||
UPJOHN(a)
|
$ | 1,916 | $ | 2,351 | $ | 5,944 | $ | 8,535 | ||||||||||||||||||||||||
Lipitor
|
Reduction of LDL cholesterol | 356 | 476 | 1,191 | 1,506 | |||||||||||||||||||||||||||
Lyrica
|
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury
|
352 | 527 | 1,058 | 2,888 | |||||||||||||||||||||||||||
Norvasc
|
Hypertension | 183 | 219 | 601 | 735 | |||||||||||||||||||||||||||
Celebrex
|
Arthritis pain and inflammation, acute pain | 133 | 179 | 428 | 526 | |||||||||||||||||||||||||||
Viagra
|
Erectile dysfunction | 121 | 120 | 342 | 379 | |||||||||||||||||||||||||||
Effexor
|
Depression and certain anxiety disorders | 80 | 80 | 242 | 242 | |||||||||||||||||||||||||||
Zoloft
|
Depression and certain anxiety disorders | 76 | 74 | 233 | 217 | |||||||||||||||||||||||||||
EpiPen(a)
|
Epinephrine injection used in treatment of life-threatening allergic reactions
|
58 | 74 | 194 | 197 | |||||||||||||||||||||||||||
Xalatan/Xalacom
|
Glaucoma and ocular hypertension | 62 | 68 | 188 | 201 | |||||||||||||||||||||||||||
Xanax | Anxiety disorders | 55 | 50 | 149 | 147 | |||||||||||||||||||||||||||
All other Upjohn | Various | 442 | 485 | 1,317 | 1,496 | |||||||||||||||||||||||||||
CONSUMER HEALTHCARE BUSINESS(e)
|
$ | — | $ | 377 | $ | — | $ | 2,098 | ||||||||||||||||||||||||
Total Alliance revenues | $ | 1,250 | $ | 1,141 | $ | 4,036 | $ | 3,418 | ||||||||||||||||||||||||
Total Biosimilars(b)
|
$ | 424 | $ | 236 | $ | 1,001 | $ | 632 | ||||||||||||||||||||||||
Total Sterile Injectable Pharmaceuticals(f)
|
$ | 1,195 | $ | 1,248 | $ | 3,839 | $ | 3,703 |
● |
Beginning on page 50
|
||||||||||||||||
This section provides information about the following: Our Business; Our Business Development Initiatives; our performance during the third quarter and first nine months of 2020 and 2019; Our Operating Environment; The Global Economic Environment; Our Strategy; and Our Financial Guidance for 2020.
|
|||||||||||||||||
● |
Beginning on page 59
|
||||||||||||||||
This section discusses our disclosures for those accounting policies and estimates that we consider important in understanding our consolidated financial statements.
|
|||||||||||||||||
● |
Beginning on page 61
|
||||||||||||||||
This section includes the following sub-sections:
|
|||||||||||||||||
Beginning on page 61
|
|||||||||||||||||
This sub-section provides an overview of revenues by operating segment and geography as well as revenue deductions.
|
|||||||||||||||||
Beginning on page 66
|
|||||||||||||||||
This sub-section provides an overview of several of our biopharmaceutical products.
|
|||||||||||||||||
Beginning on page 71
|
|||||||||||||||||
This sub-section provides an overview of important biopharmaceutical product developments.
|
|||||||||||||||||
Beginning on page 73
|
|||||||||||||||||
This sub-section provides a discussion about our costs and expenses.
|
|||||||||||||||||
Beginning on page 77
|
|||||||||||||||||
This sub-section provides a discussion of items impacting our tax provisions.
|
|||||||||||||||||
Beginning on page 77
|
|||||||||||||||||
This sub-section provides a discussion of an alternative view of performance used by management.
|
|||||||||||||||||
● |
Beginning on page 82
|
||||||||||||||||
This section provides a discussion of the performance of each of our operating segments.
|
|||||||||||||||||
● |
Beginning on page 89
|
||||||||||||||||
This section provides an analysis of our cash flows for the first nine months of 2020 and 2019. | |||||||||||||||||
● |
Beginning on page 90
|
||||||||||||||||
This section provides an analysis of selected measures of our liquidity and of our capital resources as of September 27, 2020 and December 31, 2019, as well as a discussion of our outstanding debt and other commitments that existed as of September 27, 2020 and December 31, 2019. Included in the discussion of outstanding debt is a discussion of the amount of financial capacity available to help fund Pfizer’s future activities. | |||||||||||||||||
● |
Beginning on page 94
|
||||||||||||||||
This section discusses accounting standards that we have recently adopted, as well as those that recently have been issued, but not yet adopted.
|
|||||||||||||||||
● |
Beginning on page 94
|
||||||||||||||||
This section 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 MD&A.
|
(MILLIONS OF DOLLARS) | Three Months | Nine Months | ||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income, for the three and nine months ended September 29, 2019
|
$ | 10,727 | $ | 19,190 | ||||||||||
Unfavorable change in revenues | (549) | (3,101) | ||||||||||||
Favorable/(Unfavorable) changes: | ||||||||||||||
Lower Cost of sales(a)
|
73 | 423 | ||||||||||||
Lower Selling, informational and administrative expenses(b)
|
244 | 1,191 | ||||||||||||
Higher Research and development expenses(c)
|
(77) | (388) | ||||||||||||
Lower Amortization of intangible assets(d)
|
313 | 890 | ||||||||||||
Lower/(higher) Restructuring charges and certain acquisition-related costs(e)
|
361 | (139) | ||||||||||||
Non-recurrence of (Gain) on completion of Consumer Healthcare JV transaction
|
(8,087) | (8,081) | ||||||||||||
Lower business and legal entity alignment costs(f)
|
87 | 343 | ||||||||||||
(Lower)/higher net gains recognized during the period on equity-securities(f)
|
(76) | 255 | ||||||||||||
GSK Consumer Healthcare JV equity method income(f)
|
103 | 196 | ||||||||||||
Non-recurrence of net losses on early retirement of debt(f)
|
— | 138 | ||||||||||||
Higher income from collaborations, out-licensing arrangements and sales of compound/product rights(f)
|
10 | 121 | ||||||||||||
Higher royalty-related income(f)
|
59 | 50 | ||||||||||||
(Lower)/higher net periodic benefit credits other than service costs(f)
|
(73) | 12 | ||||||||||||
Higher asset impairment charges(f)
|
(872) | (712) | ||||||||||||
Loss on remeasurement of Euro debt issued by Upjohn(f)
|
(144) | (144) | ||||||||||||
Higher net interest expense(f)
|
(50) | (134) | ||||||||||||
Favorable/(Unfavorable) change in the fair value of contingent consideration(f)
|
11 | (78) | ||||||||||||
Non-recurrence of insurance recoveries related to Hurricane Maria in 2019(f)
|
— | (50) | ||||||||||||
All other items, net | 117 | 34 | ||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income, for the three and nine months ended September 27, 2020
|
$ | 2,176 | $ | 10,014 |
2020 reaffirmed financial guidance for New Pfizer is presented below(a), (b):
|
|||||
Revenues | $40.8 to $42.4 billion | ||||
Adjusted IBT Margin(c)
|
Approximately 37.0% | ||||
Adjusted Diluted EPS | $2.28 to $2.38 | ||||
Operating Cash Flow(d)
|
$10.0 to $11.0 billion | ||||
2020 reaffirmed financial guidance for Upjohn is presented below(a):
|
|||||
Revenues | $8.0 to $8.5 billion | ||||
Adjusted EBITDA(b)
|
$3.8 to $4.2 billion |
2020 Revenues by Geography | % of Total | |||||||
U.S. | 47% | |||||||
International | 53% |
2019 Revenues by Geography | % of Total | |||||||
U.S. | 46% | |||||||
International | 54% |
2020 Revenues by Geography | % of Total | |||||||
U.S. | 47% | |||||||
International | 53% |
2019 Revenues by Geography | % of Total | |||||||
U.S. | 47% | |||||||
International | 53% |
The following provides an analysis of the worldwide change in revenues by geographic areas in the third quarter of 2020:
|
||||||||||||||||||||
Three Months Ended September 27, 2020 | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | Worldwide | U.S. | International | |||||||||||||||||
Operational growth/(decline): | ||||||||||||||||||||
Continued growth from certain key brands(a)
|
$ | 235 | $ | 118 | $ | 118 | ||||||||||||||
Higher revenues for Biosimilars, primarily driven by recent oncology biosimilar launches in the U.S. and other global markets and continued growth from Retacrit, primarily in the U.S. | 188 | 137 | 51 | |||||||||||||||||
Higher revenues for the rare disease business driven by the U.S. launches of Vyndaqel in May 2019 and Vyndamax in September 2019 for ATTR-CM; and in international markets, primarily driven by the March 2019 launch of the ATTR-CM indication in Japan and the February 2020 approval of the ATTR-CM indication in the EU | 154 | 78 | 76 | |||||||||||||||||
Higher revenues for Inlyta, primarily due to increased demand in the U.S. and certain developed international markets, following the approvals in 2019 for combinations of certain immune checkpoint inhibitors plus Inlyta for the first-line treatment of patients with advanced RCC | 57 | 32 | 26 | |||||||||||||||||
Lower revenues for Consumer Healthcare reflecting the July 31, 2019 completion of the GSK Consumer Healthcare joint venture transaction. As a result, for the third quarter of 2019, revenues reflect one month of Consumer Healthcare segment domestic operations and two months of Consumer Healthcare segment international operations, while for the third quarter of 2020, there is no contribution from the Consumer Healthcare business | (377) | (124) | (253) | |||||||||||||||||
Lower worldwide revenues for Lyrica, primarily in the U.S., reflecting the expected significantly lower volumes associated with multi-source generic competition that began in July 2019 | (174) | (157) | (18) | |||||||||||||||||
Declines in revenues for Lipitor and Norvasc, reflecting significant revenue declines associated with the VBP program in China, which was initially implemented in certain cities in March 2019, and expanded nationwide beginning in December 2019, resulting in significant volume and price erosion | (150) | (8) | (143) | |||||||||||||||||
Decreased revenue for the Hospital business, primarily in emerging markets and driven by lower demand for certain anti-infective products in China due to lower infection rates driven by fewer elective surgical procedures, shorter in-patient hospital stays and improved infection control | (90) | 20 | (109) | |||||||||||||||||
Lower revenues for Enbrel internationally, primarily reflecting continued biosimilar competition in most developed Europe markets, as well as in Japan and Brazil, all of which is expected to continue | (87) | — | (87) | |||||||||||||||||
Decline in Prevnar 13/Prevenar 13 revenues primarily in the U.S., reflecting the unfavorable impact of timing associated with government purchases for the pediatric indication and the impact of the revised adult recommendation from the ACIP, partially offset by the recovery of a portion of the missed doses from the second quarter of 2020, resulting from COVID-19-related mobility restrictions or limitations. The decline in the U.S. was partially offset by continued strong pediatric uptake in China as well as increased adult uptake in certain international markets resulting from greater vaccine awareness for respiratory illnesses, including specifically pneumococcal disease, due to the COVID-19 pandemic | (55) | (140) | 85 | |||||||||||||||||
Decline in revenues for Celebrex driven by lower volume in Japan, resulting from generic competition which began in June 2020 | (45) | (2) | (43) | |||||||||||||||||
Other operational factors, net | (101) | (88) | (13) | |||||||||||||||||
Operational growth/(decline), net | (444) | (134) | (310) | |||||||||||||||||
Unfavorable impact of foreign exchange | (104) | — | (104) | |||||||||||||||||
Revenues decrease
|
$ | (549) | $ | (134) | $ | (415) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 868 | $ | 1,008 | (14) | $ | 2,143 | $ | 2,498 | (14) | ||||||||||||||||||||||||||||||||||||||||
International | 665 | 595 | 12 | 14 | 1,957 | 1,770 | 11 | 14 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 1,534 | $ | 1,603 | (4) | (3) | $ | 4,100 | $ | 4,268 | (4) | (2) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 909 | $ | 832 | 9 | $ | 2,689 | $ | 2,405 | 12 | ||||||||||||||||||||||||||||||||||||||||
International | 448 | 451 | (1) | 1 | 1,266 | 1,273 | (1) | 3 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 1,357 | $ | 1,283 | 6 | 6 | $ | 3,955 | $ | 3,677 | 8 | 9 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 557 | $ | 541 | 3 | $ | 2,084 | $ | 1,768 | 18 | ||||||||||||||||||||||||||||||||||||||||
International | 557 | 484 | 15 | 16 | 1,602 | 1,353 | 18 | 21 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 1,114 | $ | 1,025 | 9 | 9 | $ | 3,686 | $ | 3,121 | 18 | 19 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 469 | $ | 444 | 6 | $ | 1,213 | $ | 1,201 | 1 | ||||||||||||||||||||||||||||||||||||||||
International | 185 | 154 | 20 | 23 | 528 | 434 | 22 | 26 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 654 | $ | 599 | 9 | 10 | $ | 1,741 | $ | 1,634 | 6 | 8 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 20 | $ | 25 | (21) | $ | 87 | $ | 76 | 15 | ||||||||||||||||||||||||||||||||||||||||
International | 336 | 451 | (26) | (25) | 1,104 | 1,430 | (23) | (21) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 356 | $ | 476 | (25) | (24) | $ | 1,191 | $ | 1,506 | (21) | (19) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 43 | $ | 200 | (78) | $ | 175 | $ | 1,924 | (91) | ||||||||||||||||||||||||||||||||||||||||
International | 308 | 326 | (6) | (5) | 883 | 964 | (8) | (8) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 352 | $ | 527 | (33) | (33) | $ | 1,058 | $ | 2,888 | (63) | (63) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | — | $ | — | — | $ | — | $ | — | — | ||||||||||||||||||||||||||||||||||||||||
International | 321 | 415 | (23) | (21) | 1,005 | 1,285 | (22) | (19) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 321 | $ | 415 | (23) | (21) | $ | 1,005 | $ | 1,285 | (22) | (19) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 158 | $ | 79 | * | $ | 431 | $ | 87 | * | ||||||||||||||||||||||||||||||||||||||||
International | 193 | 77 | * | * | 429 | 173 | * | * | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 351 | $ | 156 | * | * | $ | 859 | $ | 259 | * | * |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 266 | $ | 225 | 18 | $ | 741 | $ | 594 | 25 | ||||||||||||||||||||||||||||||||||||||||
International | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 266 | $ | 225 | 18 | 18 | $ | 741 | $ | 594 | 25 | 25 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 185 | $ | 227 | (19) | $ | 575 | $ | 666 | (14) | ||||||||||||||||||||||||||||||||||||||||
International | 38 | 49 | (23) | (22) | 153 | 159 | (4) | (1) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 223 | $ | 276 | (19) | (19) | $ | 728 | $ | 825 | (12) | (11) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 56 | $ | 64 | (13) | $ | 169 | $ | 217 | (22) | ||||||||||||||||||||||||||||||||||||||||
International | 146 | 160 | (9) | (6) | 448 | 488 | (8) | (5) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 202 | $ | 224 | (10) | (8) | $ | 616 | $ | 704 | (13) | (10) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 7 | $ | 9 | (23) | $ | 23 | $ | 30 | (23) | ||||||||||||||||||||||||||||||||||||||||
International | 175 | 209 | (16) | (15) | 578 | 704 | (18) | (16) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 183 | $ | 219 | (17) | (16) | $ | 601 | $ | 735 | (18) | (16) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 124 | $ | 92 | 34 | $ | 372 | $ | 185 | * | ||||||||||||||||||||||||||||||||||||||||
International | 71 | 46 | 53 | 55 | 187 | 131 | 43 | 47 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 195 | $ | 139 | 41 | 41 | $ | 559 | $ | 316 | 77 | 79 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 157 | $ | 170 | (8) | $ | 441 | $ | 510 | (14) | ||||||||||||||||||||||||||||||||||||||||
International | 11 | 11 | (7) | (2) | 31 | 32 | (4) | — | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 168 | $ | 182 | (8) | (7) | $ | 471 | $ | 542 | (13) | (13) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 88 | $ | 77 | 15 | $ | 244 | $ | 208 | 17 | ||||||||||||||||||||||||||||||||||||||||
International | 74 | 78 | (5) | (5) | 227 | 238 | (5) | (2) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 162 | $ | 155 | 5 | 5 | $ | 471 | $ | 446 | 6 | 7 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | — | $ | — | — | $ | — | $ | — | — | ||||||||||||||||||||||||||||||||||||||||
International | 143 | 163 | (12) | (11) | 432 | 505 | (14) | (12) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues | $ | 143 | $ | 163 | (12) | (11) | $ | 432 | $ | 505 | (14) | (12) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 12 | $ | 14 | (14) | $ | 33 | $ | 44 | (24) | ||||||||||||||||||||||||||||||||||||||||
International | 121 | 166 | (27) | (26) | 395 | 482 | (18) | (17) | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 133 | $ | 179 | (26) | (25) | $ | 428 | $ | 526 | (19) | (18) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 29 | $ | 36 | (20) | $ | 106 | $ | 111 | (5) | ||||||||||||||||||||||||||||||||||||||||
International | 93 | 94 | (1) | 1 | 303 | 274 | 11 | 14 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 122 | $ | 130 | (6) | (5) | $ | 409 | $ | 385 | 6 | 8 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 10 | $ | 20 | (52) | $ | 38 | $ | 72 | (48) | ||||||||||||||||||||||||||||||||||||||||
International | 111 | 99 | 12 | 14 | 305 | 306 | (1) | 1 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 121 | $ | 120 | 1 | 3 | $ | 342 | $ | 379 | (10) | (8) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
% Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
Total | Oper. |
September 27,
2020 |
September 29,
2019 |
Total | Oper. | ||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 832 | $ | 773 | 8 | $ | 2,850 | $ | 2,383 | 20 | ||||||||||||||||||||||||||||||||||||||||
International | 417 | 368 | 13 | 12 | 1,186 | 1,034 | 15 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Worldwide revenues
|
$ | 1,250 | $ | 1,141 | 10 | 9 | $ | 4,036 | $ | 3,418 | 18 | 18 |
RECENT FDA APPROVALS | ||||||||
PRODUCT | INDICATION | DATE APPROVED | ||||||
Bavencio (avelumab) |
For the maintenance treatment of patients with locally advanced or metastatic urothelial carcinoma that has not progressed with first-line platinum-containing chemotherapy, which is being developed in collaboration with Merck KGaA, Germany
|
June 2020 | ||||||
Nyvepria (pegfilgrastim-apgf)(a)
|
A biosimilar to Neulasta® (pegfilgrastim) to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with a clinically significant incidence of febrile neutropenia
|
June 2020 | ||||||
Braftovi (encorafenib)(b)
|
Braftovi (encorafenib) in combination with Erbitux® (cetuximab) for the treatment of BRAFV600E-mutant metastatic colorectal cancer after prior therapy
|
April 2020 | ||||||
Xtandi (enzalutamide) | Treatment of metastatic castration-sensitive prostate cancer, which is being developed through a collaboration with Astellas | December 2019 | ||||||
Abrilada (adalimumab-afzb)(c)
|
A biosimilar to Humira® (adalimumab) for the treatment of certain patients with rheumatoid arthritis, juvenile idiopathic arthritis, PsA, ankylosing spondylitis, adult Crohn's disease, UC and plaque psoriasis
|
November 2019 |
PENDING U.S. NDAs AND SUPPLEMENTAL FILINGS | ||||||||
PRODUCT | PROPOSED INDICATION | DATE FILED* | ||||||
abrocitinib (PF-04965842) | Treatment of moderate-to-severe atopic dermatitis | October 2020 | ||||||
Xeljanz (tofacitinib) | Treatment of ankylosing spondylitis | August 2020 | ||||||
tanezumab | For patients with chronic pain due to moderate-to-severe osteoarthritis (OA) who have experienced inadequate pain relief with other analgesics, which is being developed in collaboration with Lilly | March 2020 |
REGULATORY APPROVALS AND FILINGS IN THE EU AND JAPAN | |||||||||||
PRODUCT | DESCRIPTION OF EVENT | DATE APPROVED | DATE FILED* | ||||||||
abrocitinib (PF-04965842) | Application filed in the EU for the treatment of moderate-to-severe atopic dermatitis | — | October 2020 | ||||||||
Infliximab Pfizer (infliximab)(a)
|
Application approved in Japan for a biosimilar to Remicade® (Infliximab) for the treatment of ankylosing spondylitis
|
October 2020 | — | ||||||||
Bevacizumab Pfizer (bevacizumab)(b)
|
Application approved in Japan for a biosimilar to Avastin® (bevacizumab) for the treatment of non-small cell lung cancer
|
September 2020 | — | ||||||||
Rituximab Pfizer (rituximab)(c)
|
Application approved in Japan for a biosimilar to Rituxan® (rituximab) for the treatment of chronic idiopathic thrombocytopenic purpura
|
August 2020 | — | ||||||||
tanezumab | Application filed in Japan for patients with chronic pain due to moderate-to-severe osteoarthritis (OA) who have experienced inadequate pain relief with other analgesics | — | August 2020 | ||||||||
Bosulif (bosutinib) | Application approved in Japan for the first-line treatment of chronic myelogenous leukemia (CML) | June 2020 | — | ||||||||
Daurismo (glasdegib) | Application approved in the EU for Daurismo (glasdegib) in combination with low-dose cytarabine, a type of chemotherapy, for the treatment of newly diagnosed (de novo or secondary) AML in adult patients who are not candidates for standard chemotherapy | June 2020 | — | ||||||||
Bavencio (avelumab) |
Application filed in the EU for first-line maintenance treatment of patients with locally advanced or metastatic urothelial carcinoma, which is being developed in collaboration with Merck KGaA, Germany
|
— | June 2020 | ||||||||
Braftovi (encorafenib)(d)
|
Application approved in the EU for Braftovi (encorafenib) in combination with Erbitux® (cetuximab), for the treatment of adult patients with mCRC with a BRAF mutation, who have received prior systemic therapy, which is being developed in collaboration with the Pierre Fabre Group
|
June 2020 | — | ||||||||
Bavencio (avelumab) |
Application filed in Japan for first-line maintenance treatment of patients with locally advanced or metastatic urothelial carcinoma, which is being developed in collaboration with Merck KGaA, Germany
|
— | May 2020 | ||||||||
Ruxience (rituximab)(e)
|
Application approved in the EU for a biosimilar to MabThera® (rituximab) for the treatment of non-Hodgkin’s lymphoma, chronic lymphocytic leukemia, RA, granulomatosis with polyangiitis and microscopic polyangiitis, and pemphigus vulgaris
|
April 2020 | — | ||||||||
Staquis (crisaborole) | Application approved in the EU for the treatment of mild to moderate atopic dermatitis in adults and pediatric patients from 2 years of age with ≤ 40% body surface area affected | March 2020 | — | ||||||||
tanezumab | Application filed in the EU for adult patients with moderate to severe chronic pain associated with OA for whom treatment with NSAIDs and/or an opioid is ineffective, not tolerated or inappropriate | — | March 2020 | ||||||||
Braftovi (encorafenib) and Mektovi (binimetinib)
|
Application filed in Japan for second-or-third-line treatment of BRAF-mutant mCRC in patients who have received prior systemic therapy, which is being developed in collaboration with Ono Pharmaceutical Co., Ltd.
|
— | March 2020 | ||||||||
Vyndaqel (tafamidis free acid) |
Application approved in the EU for a once-daily 61 mg oral capsule, for the treatment of wild-type or hereditary transthyretin amyloidosis in adult patients with cardiomyopathy
|
February 2020 | — | ||||||||
Amsparity (adalimumab)(f)
|
Application approved in the EU for a biosimilar to Humira® (adalimumab) for the treatment of certain patients with RA, juvenile idiopathic arthritis, axial spondyloarthritis, PsA, psoriasis, hidradenitis suppurativa, Crohn’s disease, UC, uveitis, and pediatric plaque psoriasis
|
February 2020 | — | ||||||||
Xeljanz (tofacitinib) | Application approved in the EU for Xeljanz (tofacitinib) 11 mg prolonged release tablets in combination with methotrexate for the treatment of moderate to severe active rheumatoid arthritis in adult patients who have responded inadequately to, or who are intolerant to one or more disease-modifying antirheumatic drugs | December 2019 | — | ||||||||
Bavencio (avelumab) | Application approved in Japan for Bavencio (avelumab) in combination with Inlyta (axitinib) for the first-line treatment of advanced RCC, which is being developed in collaboration with Merck KGaA, Germany | December 2019 | — | ||||||||
PF-06881894(g)
|
Application filed in the EU for a potential biosimilar to Neulasta® (pegfilgrastim)
|
— | October 2019 | ||||||||
Xtandi (enzalutamide) | Application filed in the EU for the treatment of metastatic castration-sensitive prostate cancer, which is being developed through a collaboration with Astellas | — | July 2019 |
LATE-STAGE CLINICAL PROGRAMS FOR ADDITIONAL USES AND DOSAGE FORMS
FOR IN-LINE AND IN-REGISTRATION PRODUCTS |
|||||
PRODUCT | PROPOSED INDICATION | ||||
Bavencio (avelumab) | A monoclonal antibody that inhibits PD-L1 for the first-line treatment of stage IIIb/IV non-small cell lung cancer, which is being developed in collaboration with Merck KGaA, Germany | ||||
Ibrance (palbociclib) | Treatment of HER2+ advanced breast cancer, in collaboration with the Alliance Foundation Trials, LLC | ||||
Lorbrena (lorlatinib) | Treatment of patients with metastatic non-small cell lung cancer whose tumors are ALK-positive as detected by an FDA-approved test | ||||
Xeljanz (tofacitinib) | Treatment of ankylosing spondylitis (ex-U.S.) | ||||
Xtandi (enzalutamide) | Treatment of non-metastatic castration-sensitive prostate cancer, which is being developed through a collaboration with Astellas | ||||
Talzenna (talazoparib) | An oral PARP inhibitor, in combination with Xtandi (enzalutamide), for the treatment of metastatic castration-resistant prostate cancer |
NEW DRUG CANDIDATES IN LATE-STAGE DEVELOPMENT | |||||
CANDIDATE | PROPOSED INDICATION | ||||
aztreonam-avibactam
(PF-06947387) |
A beta lactam/beta lactamase inhibitor for the treatment of patients with infections caused by Gram-negative bacteria, including those that produce metallo-beta-lactamases, for which there are limited or no treatment options | ||||
fidanacogene elaparvovec (PF-06838435)
|
An investigational gene therapy for the treatment of hemophilia B | ||||
Giroctocogene fitelparvovec (SB-525 or PF-07055480)
|
An investigational gene therapy for moderately severe to severe hemophilia A patients
|
||||
PF-06482077 |
A 20-Valent pneumococcal conjugate vaccine for the prevention of invasive pneumococcal disease and pneumonia caused by Streptococcus pneumoniae serotypes covered by the vaccine in adults 18 years of age and older
|
||||
PF-06482077 |
A 20-Valent pneumococcal conjugate vaccine for the prevention of invasive pneumococcal disease and pneumonia caused by Streptococcus pneumoniae serotypes covered by the vaccine in infants
|
||||
PF-06425090 |
A prophylactic vaccine for prevention of primary clostridioides difficile infection (CDI) in individuals
|
||||
PF-06886992
|
Prevention of invasive meningococcal disease caused by Neisseria meningitidis serogroups A,B,C,W and Y in persons one through 25 years of age | ||||
PF-06928316 | A respiratory syncytial virus (RSV) vaccine for the prevention of RSV disease in young infants through maternal immunization and in older adults through direct immunization | ||||
PF-07302048 (BNT162)
|
A mRNA-based vaccine for the prevention of SARS-CoV-2, the virus that causes COVID-19 disease, in partnership with BioNTech | ||||
PF-07265803 | An oral inhibitor of p38 mitogen-activated protein kinase for the treatment of patients with symptomatic dilated cardiomyopathy due to a Lamin A/C gene mutation | ||||
ritlecitinib (PF-06651600) | A selective dual Janus kinase 3 (JAK3) and Tyrosine kinase Expressed in hepatocellular Carcinoma (TEC) family inhibitor for the treatment of patients with moderate to severe alopecia areata | ||||
sasanlimab (PF-06801591)
|
A monoclonal antibody that inhibits PD-1, in combination with Bacillus Calmette-Guerin (BCG), for the treatment of non-muscle invasive bladder cancer | ||||
somatrogon (PF-06836922) | A long-acting hGH-CTP for the treatment of growth hormone deficiency in children, which is being developed in collaboration with OPKO | ||||
somatrogon (PF-06836922) | A long-acting hGH-CTP for the treatment of growth hormone deficiency in adults, which is being developed in collaboration with OPKO | ||||
tanezumab | An anti-nerve growth factor monoclonal antibody for the treatment of cancer pain, which is being developed in collaboration with Lilly |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Cost of sales | $ | 2,529 | $ | 2,602 | (3) | $ | 7,188 | $ | 7,611 | (6) | ||||||||||||||||||||||||||||
As a percentage of Revenues
|
20.8 | % | 20.5 | % | 20.0 | % | 19.5 | % | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
$ | 3,016 | $ | 3,260 | (7) | $ | 8,919 | $ | 10,110 | (12) | ||||||||||||||||||||||||||||
As a percentage of Revenues
|
24.9 | % | 25.7 | % | 24.8 | % | 25.9 | % | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Research and development expenses
|
$ | 2,360 | $ | 2,283 | 3 | $ | 6,216 | $ | 5,827 | 7 | ||||||||||||||||||||||||||||
As a percentage of Revenues
|
19.5 | % | 18.0 | % | 17.3 | % | 14.9 | % | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Amortization of intangible assets | $ | 898 | $ | 1,212 | (26) | $ | 2,688 | $ | 3,578 | (25) | ||||||||||||||||||||||||||||
As a percentage of Revenues
|
7.4 | % | 9.6 | % | 7.5 | % | 9.2 | % | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 |
%
Change |
Sept. 27, 2020 | Sept. 29, 2019 |
%
Change |
||||||||||||||||||||||||||||||||
Restructuring charges/(credits)—acquisition-related costs(a)
|
$ | 4 | $ | 19 | (80) | $ | 3 | $ | (196) | * | ||||||||||||||||||||||||||||
Restructuring charges/(credits)—cost reduction initiatives(b)
|
(7) | 64 | * | 389 | 145 | * | ||||||||||||||||||||||||||||||||
Restructuring charges/(credits)
|
(4) | 83 | * | 392 | (50) | * | ||||||||||||||||||||||||||||||||
Transaction costs(c)
|
— | 65 | * | 14 | 65 | (79) | ||||||||||||||||||||||||||||||||
Integration costs and other(c)
|
7 | 217 | (97) | 29 | 281 | (90) | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
4 | 365 | (99) | 435 | 295 | 47 | ||||||||||||||||||||||||||||||||
Net periodic benefit costs
|
— | 9 | * | 29 | 19 | 47 | ||||||||||||||||||||||||||||||||
Total additional depreciation—asset restructuring
|
4 | 6 | (36) | 10 | 29 | (64) | ||||||||||||||||||||||||||||||||
Total implementation costs
|
48 | 40 | 21 | 148 | 109 | 36 | ||||||||||||||||||||||||||||||||
Costs associated with acquisitions and cost-reduction/productivity initiatives(d)
|
$ | 56 | $ | 420 | (87) | $ | 621 | $ | 452 | 38 | ||||||||||||||||||||||||||||
* Indicates calculation not meaningful or results are equal to or greater than 100%. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Other (income)/deductions––net | $ | 1,148 | $ | 319 | * | $ | 507 | $ | 537 | (6) | ||||||||||||||||||||||||||||
* Indicates calculation not meaningful or results are equal to or greater than 100%. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
September 27,
2020 |
September 29,
2019 |
%
Change |
||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | $ | (26) | $ | 3,047 | * | $ | 968 | $ | 2,566 | (62) | ||||||||||||||||||||||||||||
Effective tax rate on continuing operations
|
(1.2) | % | 28.4 | % | 9.7 | % | 13.4 | % | ||||||||||||||||||||||||||||||
* Indicates calculation not meaningful or results are equal to or greater than 100%. |
Three Months Ended September 27, 2020 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Items(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 12,131 | $ | — | $ | — | $ | — | $ | — | $ | 12,131 | ||||||||||||||||||||||||||
Cost of sales | 2,529 | 5 | — | — | (32) | 2,502 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
3,016 | (1) | — | — | (147) | 2,869 | ||||||||||||||||||||||||||||||||
Research and development expenses | 2,360 | 1 | — | — | (8) | 2,354 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 898 | (826) | — | — | — | 73 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
4 | — | (11) | — | 7 | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 1,148 | (4) | — | — | (1,495) | (351) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 2,176 | 823 | 11 | — | 1,675 | 4,685 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
(26) | 197 | 3 | — | 432 | 606 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 2,202 | 626 | 9 | — | 1,242 | 4,079 | ||||||||||||||||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
8 | — | — | — | — | 8 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. | 2,194 | 626 | 9 | — | 1,242 | 4,071 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted
|
0.39 | 0.11 | — | — | 0.22 | 0.72 |
Nine Months Ended September 27, 2020 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Items(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 35,961 | $ | — | $ | — | $ | — | $ | — | $ | 35,961 | ||||||||||||||||||||||||||
Cost of sales | 7,188 | 14 | — | — | (114) | 7,088 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
8,919 | (1) | — | — | (497) | 8,421 | ||||||||||||||||||||||||||||||||
Research and development expenses | 6,216 | 4 | — | — | (244) | 5,976 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 2,688 | (2,474) | — | — | — | 215 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
435 | — | (46) | — | (389) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
(6) | — | — | — | 6 | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 507 | (89) | — | — | (1,316) | (898) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 10,014 | 2,545 | 46 | — | 2,554 | 15,159 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
968 | 564 | 11 | — | 602 | 2,145 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 9,046 | 1,981 | 35 | — | 1,952 | 13,014 | ||||||||||||||||||||||||||||||||
Discontinued operations––net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
25 | — | — | — | — | 25 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. | 9,022 | 1,981 | 35 | — | 1,952 | 12,989 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted
|
1.60 | 0.35 | 0.01 | — | 0.35 | 2.31 |
Three Months Ended September 29, 2019 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Items(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 12,680 | $ | — | $ | — | $ | — | $ | — | $ | 12,680 | ||||||||||||||||||||||||||
Cost of sales | 2,602 | 4 | — | — | (147) | 2,459 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
3,260 | 1 | — | — | (64) | 3,196 | ||||||||||||||||||||||||||||||||
Research and development expenses | 2,283 | 1 | — | — | (343) | 1,940 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 1,212 | (1,140) | — | — | — | 72 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
365 | — | (300) | — | (64) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
(8,087) | — | — | — | 8,087 | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 319 | (6) | — | — | (281) | 32 | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 10,727 | 1,141 | 300 | — | (7,187) | 4,981 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
3,047 | 239 | 58 | — | (2,581) | 763 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 7,680 | 902 | 242 | — | (4,606) | 4,218 | ||||||||||||||||||||||||||||||||
Discontinued operations––net of tax | 4 | — | — | (4) | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
4 | — | — | — | — | 4 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. | 7,680 | 902 | 242 | (4) | (4,606) | 4,214 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted
|
1.36 | 0.16 | 0.04 | — | (0.82) | 0.75 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 29, 2019 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Items(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 39,062 | $ | — | $ | — | $ | — | $ | — | $ | 39,062 | ||||||||||||||||||||||||||
Cost of sales | 7,611 | 15 | — | — | (196) | 7,430 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses | 10,110 | 2 | (2) | — | (139) | 9,971 | ||||||||||||||||||||||||||||||||
Research and development expenses | 5,827 | 3 | — | — | (372) | 5,458 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 3,578 | (3,377) | — | — | — | 201 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 295 | — | (150) | — | (145) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
(8,087) | — | — | — | 8,087 | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 537 | — | — | — | (740) | (203) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income | 19,190 | 3,357 | 152 | — | (6,495) | 16,204 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
2,566 | 685 | 69 | — | (759) | 2,560 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 16,625 | 2,673 | 83 | — | (5,737) | 13,644 | ||||||||||||||||||||||||||||||||
Discontinued operations––net of tax | 4 | — | — | (4) | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 19 | — | — | — | — | 19 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. | 16,609 | 2,673 | 83 | (4) | (5,737) | 13,625 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc.––diluted | 2.92 | 0.47 | 0.01 | — | (1.01) | 2.39 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Sept. 27, 2020 | Sept. 29, 2019 | Sept. 27, 2020 | Sept. 29, 2019 | ||||||||||||||||||||||
Purchase accounting adjustments | ||||||||||||||||||||||||||
Amortization, depreciation and other(a)
|
$ | 829 | $ | 1,145 | $ | 2,559 | $ | 3,372 | ||||||||||||||||||
Cost of sales
|
(5) | (4) | (14) | (15) | ||||||||||||||||||||||
Total purchase accounting adjustments––pre-tax | 823 | 1,141 | 2,545 | 3,357 | ||||||||||||||||||||||
Income taxes(b)
|
(197) | (239) | (564) | (685) | ||||||||||||||||||||||
Total purchase accounting adjustments––net of tax | 626 | 902 | 1,981 | 2,673 | ||||||||||||||||||||||
Acquisition-related items | ||||||||||||||||||||||||||
Restructuring charges/(credits)(c)
|
4 | 19 | 3 | (196) | ||||||||||||||||||||||
Transaction costs(c)
|
— | 65 | 14 | 65 | ||||||||||||||||||||||
Integration costs and other(c)
|
7 | 217 | 29 | 281 | ||||||||||||||||||||||
Additional depreciation––asset restructuring(d)
|
— | — | — | 2 | ||||||||||||||||||||||
Total acquisition-related items––pre-tax | 11 | 300 | 46 | 152 | ||||||||||||||||||||||
Income taxes(e)
|
(3) | (58) | (11) | (69) | ||||||||||||||||||||||
Total acquisition-related items––net of tax | 9 | 242 | 35 | 83 | ||||||||||||||||||||||
Discontinued operations | ||||||||||||||||||||||||||
Total discontinued operations––net of tax, attributable to Pfizer Inc.(f)
|
— | (4) | — | (4) | ||||||||||||||||||||||
Certain significant items | ||||||||||||||||||||||||||
Restructuring charges/(credits)––cost reduction initiatives(g)
|
(7) | 64 | 389 | 145 | ||||||||||||||||||||||
Implementation costs and additional depreciation––asset restructuring(h)
|
52 | 46 | 158 | 135 | ||||||||||||||||||||||
Net (gains)/losses recognized during the period on equity securities(i)
|
73 | (3) | (429) | (139) | ||||||||||||||||||||||
Certain legal matters, net(i)
|
38 | 63 | 64 | 72 | ||||||||||||||||||||||
Certain asset impairments(i)
|
900 | — | 900 | 149 | ||||||||||||||||||||||
Business and legal entity alignment costs(j)
|
127 | 89 | 416 | 353 | ||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction(k)
|
— | (8,087) | (6) | (8,087) | ||||||||||||||||||||||
Net losses on early retirement of debt(i)
|
— | — | — | 138 | ||||||||||||||||||||||
Other(l)
|
493 | 641 | 1,062 | 738 | ||||||||||||||||||||||
Total certain significant items––pre-tax | 1,675 | (7,187) | 2,554 | (6,495) | ||||||||||||||||||||||
Income taxes(m)
|
(432) | 2,581 | (602) | 759 | ||||||||||||||||||||||
Total certain significant items––net of tax | 1,242 | (4,606) | 1,952 | (5,737) | ||||||||||||||||||||||
Total purchase accounting adjustments, acquisition-related items, discontinued operations and certain significant items––net of tax, attributable to Pfizer Inc. | $ | 1,878 | $ | (3,466) | $ | 3,967 | $ | (2,984) |
Nine Months Ended September 27, 2020 | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
Biopharma(a)
|
Upjohn(a)
|
Other(b)
|
Non-GAAP
Adjusted(c) |
Reconciling Items(d)
|
GAAP Reported | ||||||||||||||||||||||||||||||||
Revenues | $ | 30,017 | $ | 5,944 | $ | — | $ | 35,961 | $ | — | $ | 35,961 | ||||||||||||||||||||||||||
Cost of sales | 5,371 | 1,563 | 155 | 7,088 | 100 | 7,188 | ||||||||||||||||||||||||||||||||
% of revenue | 17.9 | % | 26.3 | % | * | 19.7 | % | * | 20.0 | % | ||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
4,492 | 859 | 3,070 | 8,421 | 498 | 8,919 | ||||||||||||||||||||||||||||||||
Research and development expenses | 630 | 169 | 5,178 | 5,976 | 240 | 6,216 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 213 | 1 | 2 | 215 | 2,474 | 2,688 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | 435 | 435 | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | (6) | (6) | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | (874) | (15) | (9) | (898) | 1,405 | 507 | ||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | 20,186 | 3,367 | (8,395) | 15,159 | (5,145) | 10,014 |
Third Quarter of 2019 | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
Biopharma(a)
|
Upjohn(a)
|
Other(b)
|
Non-GAAP
Adjusted(c) |
Reconciling Items(d)
|
GAAP Reported | ||||||||||||||||||||||||||||||||
Revenues | $ | 9,952 | $ | 2,351 | $ | 377 | $ | 12,680 | $ | — | $ | 12,680 | ||||||||||||||||||||||||||
Cost of sales | 1,750 | 544 | 164 | 2,459 | 143 | 2,602 | ||||||||||||||||||||||||||||||||
% of revenue | 17.6 | % | 23.1 | % | * | 19.4 | % | * | 20.5 | % | ||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
1,590 | 365 | 1,241 | 3,196 | 64 | 3,260 | ||||||||||||||||||||||||||||||||
Research and development expenses | 227 | 59 | 1,655 | 1,940 | 343 | 2,283 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 71 | — | — | 72 | 1,140 | 1,212 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | 365 | 365 | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | (8,087) | (8,087) | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | (193) | — | 226 | 32 | 287 | 319 | ||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | 6,506 | 1,384 | (2,909) | 4,981 | 5,746 | 10,727 |
Nine Months Ended September 29, 2019 | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
Biopharma(a)
|
Upjohn(a)
|
Other(b)
|
Non-GAAP
Adjusted(c) |
Reconciling Items(d)
|
GAAP Reported | ||||||||||||||||||||||||||||||||
Revenues | $ | 28,429 | $ | 8,535 | $ | 2,098 | $ | 39,062 | $ | — | $ | 39,062 | ||||||||||||||||||||||||||
Cost of sales | 5,124 | 1,632 | 674 | 7,430 | 181 | 7,611 | ||||||||||||||||||||||||||||||||
% of revenue | 18.0 | % | 19.1 | % | * | 19.0 | % | * | 19.5 | % | ||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
4,791 | 1,087 | 4,093 | 9,971 | 139 | 10,110 | ||||||||||||||||||||||||||||||||
Research and development expenses | 591 | 173 | 4,694 | 5,458 | 369 | 5,827 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 201 | 1 | — | 201 | 3,377 | 3,578 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | 295 | 295 | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | (8,087) | (8,087) | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | (738) | 7 | 528 | (203) | 740 | 537 | ||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | 18,461 | 5,635 | (7,891) | 16,204 | 2,986 | 19,190 |
Third Quarter of 2020
|
||||||||||||||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
WRDM(i)
|
GPD(ii)
|
Other(iii)
|
Corporate and Other Unallocated(iv)
|
Total | |||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Cost of sales | — | 1 | — | 59 | 60 | |||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
41 | — | 109 | 906 | 1,057 | |||||||||||||||||||||||||||
Research and development expenses | 896 | 887 | 6 | 279 | 2,067 | |||||||||||||||||||||||||||
Amortization of intangible assets | — | — | — | 1 | 1 | |||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | — | |||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | |||||||||||||||||||||||||||
Other (income)/deductions––net | 1 | — | — | (54) | (54) | |||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | (937) | (887) | (115) | (1,192) | (3,131) |
Nine Months Ended September 27, 2020 | ||||||||||||||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
WRDM(i)
|
GPD(ii)
|
Other(iii)
|
Corporate and Other Unallocated(iv)
|
Total | |||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Cost of sales | (1) | 1 | — | 155 | 155 | |||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
109 | — | 323 | 2,638 | 3,070 | |||||||||||||||||||||||||||
Research and development expenses | 2,120 | 2,385 | 17 | 655 | 5,178 | |||||||||||||||||||||||||||
Amortization of intangible assets | — | — | — | 2 | 2 | |||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | — | |||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | |||||||||||||||||||||||||||
Other (income)/deductions––net | 3 | — | 1 | (13) | (9) | |||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | (2,231) | (2,386) | (341) | (3,437) | (8,395) |
Third Quarter of 2019
|
||||||||||||||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
WRDM(i)
|
GPD(ii)
|
Other(iii)
|
Corporate and Other Unallocated(iv)
|
Total | |||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 377 | $ | — | $ | 377 | ||||||||||||||||||||||
Cost of sales | — | — | 113 | 51 | 164 | |||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
34 | — | 263 | 943 | 1,241 | |||||||||||||||||||||||||||
Research and development expenses | 591 | 834 | 19 | 211 | 1,655 | |||||||||||||||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | — | |||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | |||||||||||||||||||||||||||
Other (income)/deductions––net | (9) | 1 | — | 234 | 226 | |||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | (616) | (835) | (19) | (1,439) | (2,909) |
Nine Months Ended September 29, 2019 | ||||||||||||||||||||||||||||||||
Other Business Activities | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) |
WRDM(i)
|
GPD(ii)
|
Other(iii)
|
Corporate and Other Unallocated(iv)
|
Total | |||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 2,098 | $ | — | $ | 2,098 | ||||||||||||||||||||||
Cost of sales | — | 1 | 663 | 9 | 674 | |||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
84 | — | 1,058 | 2,951 | 4,093 | |||||||||||||||||||||||||||
Research and development expenses | 1,671 | 2,324 | 82 | 618 | 4,694 | |||||||||||||||||||||||||||
Amortization of intangible assets | — | — | — | — | — | |||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
— | — | — | — | — | |||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | |||||||||||||||||||||||||||
Other (income)/deductions––net | (11) | — | — | 538 | 528 | |||||||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income | (1,744) | (2,326) | 294 | (4,116) | (7,891) |
(MILLIONS OF DOLLARS) | ||||||||
Biopharma Revenues, for the three months ended September 29, 2019
|
$ | 9,952 | ||||||
Operational growth/(decline): | ||||||||
Continued growth from certain key brands(a)
|
235 | |||||||
Higher revenues for Biosimilars, primarily driven by recent oncology biosimilar launches in the U.S. and other global markets and continued growth from Retacrit, primarily in the U.S. | 188 | |||||||
Higher revenues for the rare disease business driven by the U.S. launches of Vyndaqel in May 2019 and Vyndamax in September 2019 for ATTR-CM; and in international markets, primarily driven by the March 2019 launch of the ATTR-CM indication in Japan and the February 2020 approval of the ATTR-CM indication in the EU | 154 | |||||||
Higher revenues for Inlyta, primarily due to increased demand in the U.S. and certain developed international markets, following the approvals in 2019 for combinations of certain immune checkpoint inhibitors plus Inlyta for the first-line treatment of patients with advanced RCC | 57 | |||||||
Decreased revenue for the Hospital business, primarily in emerging markets and driven by lower demand for certain anti-infective products in China due to lower infection rates driven by fewer elective surgical procedures, shorter in-patient hospital stays and improved infection control | (90) | |||||||
Lower revenues for Enbrel internationally, primarily reflecting continued biosimilar competition in most developed Europe markets, as well as in Japan and Brazil, all of which is expected to continue | (87) | |||||||
Decline in Prevnar 13/Prevenar 13 revenues primarily in the U.S., reflecting the unfavorable impact of timing associated with government purchases for the pediatric indication and the impact of the revised adult recommendation from the ACIP, partially offset by the recovery of a portion of the missed doses from the second quarter of 2020, resulting from COVID-19-related mobility restrictions or limitations. The decline in the U.S. was partially offset by continued strong pediatric uptake in China as well as increased adult uptake in certain international markets resulting from greater vaccine awareness for respiratory illnesses, including specifically pneumococcal disease, due to the COVID-19 pandemic | (55) | |||||||
Other operational factors, net | (54) | |||||||
Operational growth, net | 349 | |||||||
Unfavorable impact of foreign exchange | (86) | |||||||
Biopharma Revenues increase
|
263 | |||||||
Biopharma Revenues, for the three months ended September 27, 2020
|
$ | 10,215 |
(MILLIONS OF DOLLARS) | ||||||||
Upjohn Revenues, for the three months ended September 29, 2019
|
$ | 2,351 | ||||||
Operational growth/(decline): | ||||||||
Lower worldwide revenues for Lyrica, primarily in the U.S., reflecting the expected significantly lower volumes associated with multi-source generic competition that began in July 2019 | (174) | |||||||
Declines in revenues for Lipitor and Norvasc, reflecting significant revenue declines associated with the VBP program in China, which was initially implemented in certain cities in March 2019, and expanded nationwide beginning in December 2019, resulting in significant volume and price erosion | (150) | |||||||
Decline in revenues for Celebrex driven by lower volume in Japan, resulting from generic competition which began in June 2020 | (45) | |||||||
Other operational factors, net | (46) | |||||||
Operational decline, net | (416) | |||||||
Unfavorable impact of foreign exchange | (18) | |||||||
Upjohn Revenues decrease
|
(435) | |||||||
Upjohn Revenues, for the three months ended September 27, 2020
|
$ | 1,916 |
(MILLIONS OF DOLLARS) | ||||||||
Biopharma Revenues, for the nine months ended September 29, 2019
|
$ | 28,429 | ||||||
Operational growth/(decline): | ||||||||
Continued growth from certain key brands(a)
|
1,047 | |||||||
Higher revenues for the rare disease business driven by the U.S. launches of Vyndaqel in May 2019 and Vyndamax in September 2019 for ATTR-CM; and in international markets, primarily driven by the March 2019 launch of the ATTR-CM indication in Japan and the February 2020 approval of the ATTR-CM indication in the EU
|
508 | |||||||
Higher revenues for Biosimilars, primarily driven by recent oncology biosimilar launches in the U.S. and other global markets and continued growth from Retacrit, primarily in the U.S. | 378 | |||||||
Higher revenues for Inlyta, primarily due to increased demand in the U.S. and certain developed international markets, following the approvals in 2019 for combinations of certain immune checkpoint inhibitors plus Inlyta for the first-line treatment of patients with advanced RCC | 248 | |||||||
Higher revenues for Xtandi primarily driven by continued strong demand in the mCRPC and nmCRPC indications as well as the mCSPC indication, which was approved in the U.S. in December 2019 | 146 | |||||||
Higher revenues for the Hospital business in the U.S., primarily driven by increased demand for certain sterile injectable products utilized in the intubation and ongoing treatment of mechanically-ventilated COVID-19 patients as well as continued growth from Panzyga following its November 2018 U.S. launch, partially offset by lower demand for certain anti-infective products in China due to lower infection rates driven by fewer elective surgical procedures, shorter in-patient hospital stays and improved infection control
|
123 | |||||||
Lower revenues for Enbrel internationally, primarily reflecting continued biosimilar competition in most developed Europe markets, as well as in Japan and Brazil, all of which is expected to continue | (246) | |||||||
Decline in Prevnar 13/Prevenar 13 revenues primarily in the U.S., driven by the unfavorable impact of timing associated with government purchases for the pediatric indication, the expected unfavorable impact of disruptions to wellness visits for pediatric and adult patients due to COVID-19-related mobility restrictions or limitations and the impact of the revised adult recommendation from the ACIP. The decline in the U.S. was partially offset by increased adult uptake in certain international markets resulting from greater vaccine awareness for respiratory illnesses, including specifically pneumococcal disease, due to the COVID-19 pandemic, as well as continued strong pediatric uptake in China | (102) | |||||||
Other operational factors, net | (84) | |||||||
Operational growth, net | 2,019 | |||||||
Unfavorable impact of foreign exchange | (431) | |||||||
Biopharma Revenues increase
|
1,588 | |||||||
Biopharma Revenues, for the nine months ended September 27, 2020
|
$ | 30,017 |
(MILLIONS OF DOLLARS) | ||||||||
Upjohn Revenues, for the nine months ended September 29, 2019
|
$ | 8,535 | ||||||
Operational decline: | ||||||||
Lower worldwide revenues for Lyrica, primarily in the U.S., reflecting the expected significantly lower volumes associated with multi-source generic competition that began in July 2019 | (1,829) | |||||||
Declines in revenues for Lipitor and Norvasc, primarily resulting from the VBP program in China, which was initially implemented in certain cities in March 2019, and expanded nationwide beginning in December 2019, resulting in significant volume and price erosion
|
(404) | |||||||
Decline in revenues for Celebrex driven by lower volume in Japan, resulting from generic competition which began in June 2020 and by pricing pressures and lower volumes in certain emerging markets | (94) | |||||||
Decline in revenues for Revatio driven by lower U.S. Oral Suspension formulation sales and pricing pressures due to multi-source generic competition
|
(58) | |||||||
Other operational factors, net | (121) | |||||||
Operational decline, net | (2,507) | |||||||
Unfavorable impact of foreign exchange | (84) | |||||||
Upjohn Revenues decrease
|
(2,591) | |||||||
Upjohn Revenues, for the nine months ended September 27, 2020
|
$ | 5,944 |
Nine Months Ended | ||||||||||||||||||||
(MILLIONS OF DOLLARS) |
September 27,
2020 |
September 29,
2019 |
%
Change |
|||||||||||||||||
Cash provided by/(used in): | ||||||||||||||||||||
Operating activities | $ | 8,778 | $ | 8,819 | — | |||||||||||||||
Investing activities | (12,601) | (1,112) | * | |||||||||||||||||
Financing activities | 4,138 | (6,045) | * | |||||||||||||||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents
|
(39) | (41) | (5) | |||||||||||||||||
Net increase in Cash and cash equivalents and restricted cash and cash equivalents
|
$ | 277 | $ | 1,620 | (83) | |||||||||||||||
* Calculation not meaningful or results are equal to or greater than 100%. |
Recently Issued Accounting Standards, Not Adopted as of September 27, 2020 | ||||||||||||||
Standard/Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | ||||||||||||
In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.
|
January 1, 2021. Early adoption is permitted. |
We do not expect this guidance to have a material impact on our consolidated financial statements.
|
||||||||||||
In March 2020, the FASB issued new guidance to address reference rate reform by providing temporary optional expedients and exceptions to the guidance for contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued after 2021 because of reference rate reform.
The new guidance provides the following optional expedients:
1.Simplify accounting analyses under current U.S. GAAP for contract modifications.
2.Simplify the assessment of hedge effectiveness and allow hedging relationships affected by reference rate reform to continue.
3.Allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform.
|
Elections can be adopted prospectively at any time in the first quarter of 2020 through December 31, 2022.
|
We are assessing the impact of the provisions of this new guidance on our consolidated financial statements.
|
Period |
Total Number of
Shares Purchased(b)
|
Average Price
Paid per Share(b)
|
Total Number of Shares Purchased as Part of Publicly Announced Plan |
Approximate Value of Shares That May Yet Be Purchased Under the Plan(a)
|
||||||||||||||||||||||
June 29 through July 26, 2020 | 21,706 | $ | 33.47 | — | $ | 5,292,881,709 | ||||||||||||||||||||
July 27 through August 23, 2020 | 18,025 | $ | 38.34 | — | $ | 5,292,881,709 | ||||||||||||||||||||
August 24 through September 27, 2020 | 4,978 | $ | 37.71 | — | $ | 5,292,881,709 | ||||||||||||||||||||
Total | 44,709 | $ | 35.90 | — |
- | Amendment No. 3, dated as of September 18, 2020, to the Separation and Distribution Agreement, dated as of July 29, 2019, by and between Pfizer Inc. and Upjohn Inc. (Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby agrees to supplementally furnish to the SEC upon request any omitted schedule or exhibit to the Separation and Distribution Agreement). | ||||||||||
- | Accountants’ Acknowledgment. | ||||||||||
- | Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
- | Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||||
- |
Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section
1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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- |
Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section
1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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Exhibit 101: | |||||||||||
EX-101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
EX-101.SCH
EX-101.CAL EX-101.LAB EX-101.PRE EX-101.DEF |
Inline XBRL Taxonomy Extension Schema
Inline XBRL Taxonomy Extension Calculation Linkbase Inline XBRL Taxonomy Extension Label Linkbase Inline XBRL Taxonomy Extension Presentation Linkbase Inline XBRL Taxonomy Extension Definition Document |
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Exhibit 104 | Cover Page Interactive Data File––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Pfizer Inc. | ||||||||
(Registrant) | ||||||||
Dated: | November 5, 2020 | /s/ Jennifer Damico | ||||||
Jennifer Damico, Senior Vice President and
Controller (Principal Accounting Officer and Duly Authorized Officer) |
PFIZER INC. | |||||
By: | /s/ Douglas Giordano | ||||
Name: Douglas Giordano | |||||
Title: Senior Vice President | |||||
UPJOHN INC. | |||||
By: | /s/ Alison L.M. O’Neill | ||||
Name: Alison L.M. O’Neill | |||||
Title: Vice President | |||||
/s/ ALBERT BOURLA | ||||||||
Albert Bourla | ||||||||
Chairman and Chief Executive Officer |
/s/ FRANK A. D'AMELIO | ||||||||
Frank A. D'Amelio | ||||||||
Chief Financial Officer and Executive Vice President,
Global Supply |
/s/ ALBERT BOURLA | ||||||||
Albert Bourla | ||||||||
Chairman and Chief Executive Officer | ||||||||
November 5, 2020 |
/s/ FRANK A. D'AMELIO | ||||||||
Frank A. D'Amelio | ||||||||
Chief Financial Officer and Executive Vice President,
Global Supply |
||||||||
November 5, 2020 |