UNITED STATES SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
(Mark One) | |||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-5315170 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
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 |
Securities registered pursuant to Section 12(g) of the Act: None
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DOCUMENTS INCORPORATED BY REFERENCE | |||||
Portions of the Proxy Statement for the 2021 Annual Meeting of Shareholders | Part III |
TABLE OF CONTENTS |
Page | |||||
ITEM 1. BUSINESS
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ITEM 1B. UNRESOLVED STAFF COMMENTS | N/A | ||||
ITEM 4. MINE SAFETY DISCLOSURES | N/A | ||||
ITEM 9B. OTHER INFORMATION | N/A | ||||
N/A = Not Applicable
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DEFINED TERMS |
2018 Financial Report | Exhibit 13 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 | ||||
Form 10-K | This Annual Report on Form 10-K for the fiscal year ended December 31, 2020 | ||||
Proxy Statement | Proxy Statement for the 2021 Annual Meeting of Shareholders, which will be filed no later than 120 days after December 31, 2020 | ||||
AbbVie |
AbbVie Inc.
|
||||
ABO | Accumulated benefit obligation represents the present value of the benefit obligation earned through the end of the year but does not factor in future compensation increases | ||||
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 | ||||
Akcea | Akcea Therapeutics, Inc. | ||||
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. | ||||
AOCI | Accumulated Other Comprehensive Income | ||||
Array | Array BioPharma Inc. | ||||
Astellas | Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc. | ||||
ATTR-CM | transthyretin amyloid cardiomyopathy | ||||
Bain Capital | Bain Capital Private Equity and Bain Capital Life Sciences | ||||
Biogen | Biogen Inc. | ||||
BioNTech | BioNTech SE | ||||
Biopharma | Pfizer Biopharmaceuticals Group | ||||
BMS | Bristol-Myers Squibb Company | ||||
BNT162b2 | Pfizer-BioNTech COVID-19 Vaccine | ||||
BOD | Board of Directors | ||||
BRCA | BReast CAncer susceptibility gene | ||||
CAR T | chimeric antigen receptor T cell | ||||
CDC | U.S. Centers for Disease Control and Prevention | ||||
Cellectis | Cellectis S.A. | ||||
Cerevel | Cerevel Therapeutics, LLC | ||||
cGMPs | current Good Manufacturing Practices | ||||
CIAS | cognitive impairment associated with schizophrenia | ||||
Consumer Healthcare JV | GSK Consumer Healthcare JV | ||||
COVID-19 | novel coronavirus disease of 2019 | ||||
CMA |
conditional marketing authorization
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CStone |
CStone Pharmaceuticals
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DEA | U.S. Drug Enforcement Agency | ||||
Developed Europe | Includes the following markets: Western Europe, Scandinavian countries and Finland | ||||
Developed Markets | Includes the following markets: U.S., Developed Europe, Japan, Canada, Australia, South Korea and New Zealand | ||||
Developed Rest of World | Includes the following markets: Japan, Canada, Australia, South Korea 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
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EPS | earnings per share | ||||
ESOP | employee stock ownership plan | ||||
EU | European Union | ||||
EUA | emergency use authorization | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FCPA | U.S. Foreign Corrupt Practices Act | ||||
FDA | U.S. Food and Drug Administration |
Pfizer Inc. | 2020 Form 10-K |
i
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FFDCA | U.S. Federal Food, Drug and Cosmetic Act | ||||
GAAP | Generally Accepted Accounting Principles | ||||
GDFV | grant-date fair value | ||||
GIST | gastrointestinal stromal tumors | ||||
GPD | Global Product Development organization | ||||
GSK | GlaxoSmithKline plc | ||||
Hospira | Hospira, Inc. | ||||
Ionis | Ionis Pharmaceuticals, Inc. | ||||
IPR&D | in-process research and development | ||||
IRC | Internal Revenue Code | ||||
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 | ||||
LOE | loss of exclusivity | ||||
MCO | managed care organization | ||||
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. | ||||
Mylan-Japan collaboration | a pre-existing strategic collaboration between Pfizer and Mylan for generic drugs in Japan that terminated on December 21, 2020 | ||||
Myovant | Myovant Sciences Ltd. | ||||
NAV | net asset value | ||||
NDA | new drug application | ||||
nmCRPC | non-metastatic castration-resistant prostate cancer | ||||
NMPA | National Medical Product Administration in China | ||||
NYSE | New York Stock Exchange | ||||
OTC | over-the-counter | ||||
PBM | pharmacy benefit manager | ||||
PBO | Projected benefit obligation; represents the present value of the benefit obligation earned through the end of the year and factors in future compensation increases | ||||
PCPP | Pfizer Consolidated Pension Plan | ||||
PGS | Pfizer Global Supply | ||||
Pharmacia | Pharmacia Corporation | ||||
PMDA | Pharmaceuticals and Medical Device Agency in Japan | ||||
PsA | psoriatic arthritis | ||||
QCE | quality consistency evaluation | ||||
RA | rheumatoid arthritis | ||||
RCC | renal cell carcinoma | ||||
R&D | research and development | ||||
ROU | right of use | ||||
Sandoz | Sandoz, Inc., a division of Novartis AG | ||||
S&P | Standard & Poor’s | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Servier | Les Laboratoires Servier SAS | ||||
Shire | Shire International GmbH | ||||
Tax Cuts and Jobs Act or TCJA | Legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 | ||||
Teva | Teva Pharmaceuticals USA, Inc. | ||||
Therachon | Therachon Holding AG |
Pfizer Inc. | 2020 Form 10-K |
ii
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Upjohn Business | Pfizer’s global, primarily off-patent branded and generics business, which includes a portfolio of 20 globally recognized solid oral dose brands, including Lipitor, Lyrica, Norvasc, Celebrex and Viagra, as well as a U.S.-based generics platform, Greenstone, that was spun-off on November 16, 2020 and combined with Mylan to create Viatris | ||||
UC | ulcerative colitis | ||||
U.K. | United Kingdom | ||||
U.S. | United States | ||||
VAI | Voluntary Action Indicated | ||||
Valneva | Valneva SE | ||||
VBP | volume-based procurement | ||||
Viatris | Viatris Inc. | ||||
ViiV | ViiV Healthcare Limited | ||||
WRDM | Worldwide Research, Development and Medical |
Pfizer Inc. | 2020 Form 10-K |
iii
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Pfizer Inc. | 2020 Form 10-K |
iv
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Pfizer Inc. | 2020 Form 10-K |
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PART I |
ITEM 1. | BUSINESS |
Pfizer Inc. | 2020 Form 10-K |
1
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Therapeutic Area | Description | Key Products | ||||||
Internal Medicine
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Includes innovative brands from two therapeutic areas, Cardiovascular Metabolic and Pain, as well as regional brands.
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Eliquis*, Chantix/Champix* and the Premarin family
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Oncology
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Includes innovative oncology brands of biologics, small molecules, immunotherapies and biosimilars across a wide range of cancers.
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Ibrance*, Xtandi*, Sutent*, Inlyta, Retacrit, Lorbrena and Braftovi
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Hospital
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Includes our global portfolio of sterile injectable and anti-infective medicines, as well as Pfizer CentreOne, our contract manufacturing and active pharmaceutical ingredient sales operation.
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Sulperazon, Medrol, Zithromax, Vfend and Panzyga
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Vaccines
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Includes innovative vaccines across all ages—infants, adolescents and adults—in pneumococcal disease, meningococcal disease, tick-borne encephalitis and COVID-19, with a pipeline focus on infectious diseases with significant unmet medical need.
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Prevnar 13/Prevenar 13 (pediatric/adult)*, Nimenrix, FSME/IMMUN-TicoVac, Trumenba and the Pfizer-BioNTech COVID-19 vaccine
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Inflammation & Immunology
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Includes innovative brands and biosimilars for chronic immune and inflammatory diseases.
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Xeljanz*, Enbrel (outside the U.S. and Canada)*, Inflectra and Eucrisa/Staquis
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Rare Disease
|
Includes innovative brands for a number of therapeutic areas with rare diseases, including amyloidosis, hemophilia and endocrine diseases.
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Vyndaqel/Vyndamax*, BeneFIX and Genotropin
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Pfizer Inc. | 2020 Form 10-K |
2
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Pfizer Inc. | 2020 Form 10-K |
3
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Pfizer Inc. | 2020 Form 10-K |
4
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Drug |
U.S. Basic Product Patent Expiration Year(1)
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Major Europe Basic Product Patent Expiration Year(1)
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Japan Basic Product Patent Expiration Year(1)
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Chantix/Champix |
2020(2)
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2021 | 2022 | |||||||||||||||||
Sutent | 2021 | 2022 | 2024 | |||||||||||||||||
Inlyta | 2025 | 2025 | 2025 | |||||||||||||||||
Xeljanz | 2025 |
2028 (3)
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2025 | |||||||||||||||||
Prevnar 13/Prevenar 13 | 2026 |
__(4)
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2029 | |||||||||||||||||
Eliquis(5)
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2026 | 2026 | 2026 | |||||||||||||||||
Ibrance | 2027 | 2028 | 2028 | |||||||||||||||||
Xtandi(6)
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2027 |
*(6)
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*(6)
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|||||||||||||||||
Vyndaqel/Vyndamax |
2024
(2028 pending PTE) |
2026 | 2026 | |||||||||||||||||
Xalkori | 2029 | 2027 | 2028 | |||||||||||||||||
Besponsa | 2030 | 2028 |
2028(7)
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Braftovi(8)
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2031
(2031 pending PTE) |
*(8)
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*(8)
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Mektovi(8)
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2031(9)
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*(8)
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*(8)
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Bavencio(10)
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2033 | 2032 | 2033 | |||||||||||||||||
Lorbrena | 2033 | 2034 | 2036 |
Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
6
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
10
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ITEM 1A. | RISK FACTORS |
Pfizer Inc. | 2020 Form 10-K |
11
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Pfizer Inc. | 2020 Form 10-K |
12
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Pfizer Inc. | 2020 Form 10-K |
13
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
Name | Age | Position | ||||||||||||
Albert Bourla | 59 | Chairman of the Board since January 2020 and Chief Executive Officer since January 2019. Chief Operating Officer from January 2018 until December 2018. Group President, Pfizer Innovative Health from June 2016 until December 2017. Group President, Global Innovative Pharma Business (responsible for Vaccines, Oncology and Consumer Healthcare since 2014) from February 2016 until June 2016. President and General Manager of Established Products Business Unit from December 2010 until December 2013. Our Director since February 2018. Board member of Pharmaceutical Research and Manufacturers of America (PhRMA). Board member of The Pfizer Foundation, which promotes access to quality healthcare. Director of the Partnership for New York City and Catalyst, a global non-profit organization accelerating progress for the advancement of women into leadership. | ||||||||||||
William Carapezzi | 63 |
Executive Vice President, Global Business Services and Transformation since June 2020. Senior Vice President of Global Business Operations from June 2013 until June 2020. Senior Vice President of Global Tax from 2008 until June 2013.
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Pfizer Inc. | 2020 Form 10-K |
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Name | Age | Position | ||||||||||||
Frank A. D’Amelio | 63 | Chief Financial Officer and Executive Vice President, Global Supply since June 2020. Chief Financial Officer, Executive Vice President, Business Operations and Global Supply from November 2018 until June 2020. Executive Vice President, Business Operations and Chief Financial Officer from December 2010 until October 2018. Senior Vice President and Chief Financial Officer from September 2007 until December 2010. Director of Zoetis Inc. and Humana Inc. and Chair of the Humana Inc. Board of Directors’ Audit Committee. Director of the Independent College Fund of New Jersey. | ||||||||||||
Mikael Dolsten | 62 | Chief Scientific Officer, President, Worldwide Research, Development and Medical since January 2019. President of Worldwide Research and Development from December 2010 until December 2018. Senior Vice President; President of Worldwide Research and Development from May 2010 until December 2010. Senior Vice President; President of Pfizer BioTherapeutics Research & Development Group from October 2009 until May 2010. He was Senior Vice President of Wyeth and President, Wyeth Research from June 2008 until October 2009. Director of Karyopharm Therapeutics Inc. Director of PhRMA Foundation and Governor of New York Academy of Science (NYAS). | ||||||||||||
Lidia Fonseca | 52 | Chief Digital and Technology Officer, Executive Vice President since January 2019. Chief Information Officer and Senior Vice President of Quest Diagnostics Incorporated from 2014 to 2018. Senior Vice President of Laboratory Corporation of America Holdings from 2008 until March 2013. Director of Tegna, Inc. | ||||||||||||
Angela Hwang | 55 | Group President, Pfizer Biopharmaceuticals Group since January 2019. Group President, Pfizer Essential Health from January 2018 until December 2018. Global President, Pfizer Inflammation and Immunology from January 2016 until December 2017. Regional Head, U.S. Vaccines from January 2014 until December 2015. Vice President, Emerging Markets for the Primary Care therapeutic area from September 2011 until December 2013. Vice President, U.S. Brands commercial organization within Essential Health from October 2009 until August 2011. Director of United Parcel Service, Inc. | ||||||||||||
Rady A. Johnson | 59 | Chief Compliance, Quality and Risk Officer, Executive Vice President since January 2019. Executive Vice President, Chief Compliance and Risk Officer from December 2013 until December 2018. Senior Vice President and Associate General Counsel from October 2006 until December 2013. | ||||||||||||
Douglas M. Lankler | 55 | General Counsel, Executive Vice President since December 2013. Corporate Secretary from January 2014 until February 2014. Executive Vice President, Chief Compliance and Risk Officer from February 2011 until December 2013. Executive Vice President, Chief Compliance Officer from December 2010 until February 2011. Senior Vice President and Chief Compliance Officer from January 2010 until December 2010. Senior Vice President, Deputy General Counsel and Chief Compliance Officer from August 2009 until January 2010. | ||||||||||||
A. Rod MacKenzie | 61 | Chief Development Officer, Executive Vice President since June 2016. Senior Vice President, Chief Development Officer from March 2016 until June 2016. Group Senior Vice President and Head, Pharma Therapeutics Research and Development from 2010 until March 2016. Dr. MacKenzie represents Pfizer as a member of the Board of Directors of ViiV Healthcare Limited, TransCelerate Biopharma Inc. and the National Health Council. | ||||||||||||
Payal Sahni | 46 |
Chief Human Resources Officer, Executive Vice President since June 2020. From May 2016 until June 2020 served as Senior Vice President of Human Resources for multiple operating units. Vice President of Human Resources, Vaccines, Oncology & Consumer from 2015 until 2016. Ms. Sahni has served in a number of positions in the Human Resources organization with increasing responsibility since joining Pfizer in 1997.
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Sally Susman | 59 | Chief Corporate Affairs Officer, Executive Vice President since January 2019. Executive Vice President, Corporate Affairs (formerly Policy, External Affairs and Communications) from December 2010 until December 2018. Senior Vice President, Policy, External Affairs and Communications from December 2009 until December 2010. Director of WPP plc. | ||||||||||||
John D. Young | 56 | Chief Business Officer, Group President since January 2019. Group President, Pfizer Innovative Health from January 2018 until December 2018. Group President, Pfizer Essential Health from June 2016 until December 2017. Group President, Global Established Pharma Business from January 2014 until June 2016. President and General Manager, Pfizer Primary Care from June 2012 until December 2013. Primary Care Business Unit’s Regional President for Europe and Canada from 2009 until June 2012. Director of Johnson Controls International plc. Mr. Young represents Pfizer as a member of the Board of Directors of the Consumer Healthcare JV. Director of Biotechnology Innovation Organization (BIO). |
PART II |
ITEM 5. | MARKET FOR THE COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
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)
|
|||||||||||||||||||
September 28 through October 25, 2020 | 26,921 | $ | 36.99 | — | $ | 5,292,881,709 | |||||||||||||||||
October 26 through November 30, 2020 | 84,279 | $ | 37.48 | — | $ | 5,292,881,709 | |||||||||||||||||
December 1 through December 31, 2020 | 69,317 | $ | 37.39 | — | $ | 5,292,881,709 | |||||||||||||||||
Total | 180,517 | $ | 37.37 | — |
Pfizer Inc. | 2020 Form 10-K |
21
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2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||||
PFIZER | $100.0 | $104.5 | $120.9 | $151.0 | $140.5 | $145.4 | ||||||||||||||||||||||||||||||||
PEER GROUP | $100.0 | $100.8 | $118.1 | $127.8 | $155.3 | $161.7 | ||||||||||||||||||||||||||||||||
S&P 500 | $100.0 | $112.0 | $136.4 | $130.4 | $171.4 | $203.0 |
Pfizer Inc. | 2020 Form 10-K |
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ITEM 6. | SELECTED FINANCIAL DATA |
Year Ended/As of December 31,(a)
|
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(MILLIONS, EXCEPT PER COMMON SHARE DATA) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Revenues | $ | 41,908 | $ | 41,172 | $ | 40,825 | $ | 38,757 | $ | 38,664 | ||||||||||||||||||||||
Income/(loss) from continuing operations | 7,021 | 10,867 | 3,861 | 13,558 | (67) | |||||||||||||||||||||||||||
Total assets | 154,229 | 167,594 | 159,588 | 172,064 | 171,912 | |||||||||||||||||||||||||||
Long-term obligations(b)
|
64,835 | 66,844 | 63,972 | 69,981 | 80,957 | |||||||||||||||||||||||||||
Earnings/(loss) per common share—basic(c)
|
||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders | $ | 1.26 | $ | 1.95 | $ | 0.65 | $ | 2.26 | $ | (0.02) | ||||||||||||||||||||||
Income from discontinued operations––net of tax(a)
|
0.47 | 0.98 | 1.25 | 1.31 | 1.20 | |||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 1.73 | $ | 2.92 | $ | 1.90 | $ | 3.57 | $ | 1.18 | ||||||||||||||||||||||
Earnings/(loss) per common share—diluted(c)
|
||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders | $ | 1.24 | $ | 1.91 | $ | 0.64 | $ | 2.23 | $ | (0.02) | ||||||||||||||||||||||
Income from discontinued operations––net of tax(a)
|
0.47 | 0.96 | 1.23 | 1.29 | 1.19 | |||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 1.71 | $ | 2.87 | $ | 1.87 | $ | 3.52 | $ | 1.17 | ||||||||||||||||||||||
Cash dividends declared per common share | $ | 1.53 | $ | 1.46 | $ | 1.38 | $ | 1.30 | $ | 1.22 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
2020 Total Revenues––$41.9 billion | 2020 Net Cash Flow from Operations––$14.4 billion | ||||
An increase of 2% compared to 2019 | An increase of 14% compared to 2019 |
2020 Reported Diluted EPS––$1.71 | 2020 Adjusted Diluted EPS (Non-GAAP)––$2.22* | ||||
A decrease of 40% compared to 2019 | An increase of 16% compared to 2019 |
Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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(MILLIONS OF DOLLARS) | ||||||||
Income from continuing operations before provision/(benefit) for taxes on income for the year ended December 31, 2019
|
$ | 11,485 | ||||||
Favorable change in revenues | 736 | |||||||
Favorable/(Unfavorable) changes: | ||||||||
Non-recurrence of (Gain) on completion of Consumer Healthcare JV transaction
|
(8,080) | |||||||
Higher Cost of sales(a)
|
(441) | |||||||
Lower Selling, information and administrative expenses(a)
|
1,136 | |||||||
Higher Research and development expenses(a)
|
(1,010) | |||||||
Lower Amortization of intangible assets(a)
|
1,026 | |||||||
Lower asset impairment charges(b)
|
1,152 | |||||||
Higher net periodic benefit credits other than service costs(b)
|
308 | |||||||
Lower business and legal entity alignment costs(b)
|
300 | |||||||
Higher Consumer Healthcare JV equity method income(b)
|
281 | |||||||
Lower charges for certain legal matters(b)
|
264 | |||||||
Higher income from collaborations, out-licensing arrangements and sales of compound/product rights(b)
|
158 | |||||||
Lower charges to separate our Consumer Healthcare business into a separate legal entity(b)
|
152 | |||||||
Lower interest expense(b)
|
125 | |||||||
Higher royalty-related income(b)
|
124 | |||||||
Lower net losses on early retirement of debt(b)
|
101 | |||||||
Higher net gains recognized during the period on equity securities(b)
|
86 | |||||||
Higher ViiV dividend income(b)
|
58 | |||||||
Higher net losses on asset disposals(b)
|
(268) | |||||||
Lower interest income(b)
|
(153) | |||||||
All other items, net | (44) | |||||||
Income from continuing operations before provision/(benefit) for taxes on income for the year ended December 31, 2020
|
$ | 7,497 |
Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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Pfizer Inc. | 2020 Form 10-K |
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The following presents worldwide revenues by geography: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Worldwide | U.S. | International | Worldwide | U.S. | International | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 20/19 | 19/18 | 20/19 | 19/18 | 20/19 | 19/18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 41,908 | $ | 41,172 | $ | 40,825 | $ | 21,712 | $ | 20,593 | $ | 20,119 | $ | 20,196 | $ | 20,579 | $ | 20,705 | 2 | 1 | 5 | 2 | (2) | (1) |
Pfizer Inc. | 2020 Form 10-K |
31
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Pfizer Inc. | 2020 Form 10-K |
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Revenue | ||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Year Ended Dec. 31, | % Change | ||||||||||||||||||||||||||||||||||||||||||
Product |
Global
Revenues |
Region | 2020 | 2019 | Total | Oper. | Operational Results Commentary | |||||||||||||||||||||||||||||||||||||
Prevnar 13/
Prevenar 13 |
$5,850
Up 1%
(operationally)
|
U.S. | $ | 2,930 | $ | 3,209 | (9) |
Operational growth internationally primarily reflects 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, partially offset by a decline in the U.S., primarily driven by the expected unfavorable impact of disruptions to wellness visits for pediatric and adult patients due to COVID-19-related mobility restrictions or limitations as well as the continued impact of a lower remaining eligible adult population and the impact of the revised ACIP recommendation for the adult indication to shared clinical decision making, which means the decision to vaccinate should be made at the individual level between health care providers and their patients.
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||||||||||||||||||||||||||||||||||||
Int’l. | 2,920 | 2,638 | 11 | 13 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 5,850 | $ | 5,847 | — | 1 | ||||||||||||||||||||||||||||||||||||||
Ibrance |
$5,392
Up 9%
(operationally)
|
U.S. | $ | 3,634 | $ | 3,250 | 12 |
Primarily driven by continued strong volume growth in most markets, partially offset by pricing pressures in certain developed Europe markets.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 1,758 | 1,710 | 3 | 5 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 5,392 | $ | 4,961 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||
Eliquis |
$4,949
Up 18%
(operationally)
|
U.S. | $ | 2,688 | $ | 2,343 | 15 |
Primarily driven by continued increased adoption in non-valvular atrial fibrillation as well as oral anti-coagulant market share gains, partially offset by a lower net price due to an increased impact from the Medicare “coverage gap” and unfavorable channel mix in the U.S.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 2,260 | 1,877 | 20 | 22 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 4,949 | $ | 4,220 | 17 | 18 | ||||||||||||||||||||||||||||||||||||||
Xeljanz |
$2,437
Up 9%
(operationally)
|
U.S. | $ | 1,706 | $ | 1,636 | 4 |
Higher volumes in the U.S. within the RA, PsA and UC indications driven by reaching additional patients through improvements in formulary access, partially offset by increased discounts from recently-signed contracts which were entered into in order to unlock access to additional patient lives. Also reflects operational growth internationally mainly driven by continued uptake in the RA indication and, to a lesser extent, from the recent launch of the UC indication in certain developed markets.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 731 | 606 | 21 | 23 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 2,437 | $ | 2,242 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||
Vyndaqel/
Vyndamax |
$1,288
*
|
U.S. | $ | 613 | $ | 191 | * |
Driven by the U.S. launches of Vyndaqel in May 2019 and Vyndamax in September 2019 for the treatment of ATTR-CM and 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.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 675 | 282 | * | * | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,288 | $ | 473 | * | * | ||||||||||||||||||||||||||||||||||||||
Xtandi |
$1,024
Up 22%
(operationally)
|
U.S. | $ | 1,024 | $ | 838 | 22 |
Primarily driven by continued strong demand for Xtandi in the mCRPC and nmCRPC indications, as well as the mCSPC indication, which was approved in the U.S. in December 2019.
|
||||||||||||||||||||||||||||||||||||
Int’l. | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,024 | $ | 838 | 22 | 22 | ||||||||||||||||||||||||||||||||||||||
Chantix/
Champix |
$919
Down 17%
(operationally)
|
U.S. | $ | 716 | $ | 899 | (20) |
Driven by the U.S. and primarily reflects expected lower demand resulting from reduced doctor visits, including wellness visits when Chantix is typically prescribed, due to COVID-19-related mobility restrictions or limitations as well as the loss of patent protection in the U.S. in November 2020, partially offset by increased demand in Spain as a result of government reimbursement starting in January 2020.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 203 | 208 | (2) | (1) | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 919 | $ | 1,107 | (17) | (17) | ||||||||||||||||||||||||||||||||||||||
Inlyta |
$787
Up 66%
(operationally)
|
U.S. | $ | 523 | $ | 295 | 78 |
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.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 264 | 182 | 45 | 47 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 787 | $ | 477 | 65 | 66 | ||||||||||||||||||||||||||||||||||||||
Biosimilars |
$1,527
Up 68%
(operationally)
|
U.S. | $ | 899 | $ | 451 | 99 | 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. | ||||||||||||||||||||||||||||||||||||
Int’l. | 628 | 460 | 36 | 37 | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 1,527 | $ | 911 | 68 | 68 | ||||||||||||||||||||||||||||||||||||||
Hospital |
$7,961
Up 3%
(operationally)
|
U.S. | $ | 3,362 | $ | 3,081 | 9 |
Higher revenues 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, continued growth from Panzyga and recent anti-infective launches, as well as Pfizer CentreOne business in international markets, 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.
|
||||||||||||||||||||||||||||||||||||
Int’l. | 4,599 | 4,691 | (2) | — | ||||||||||||||||||||||||||||||||||||||||
Worldwide | $ | 7,961 | $ | 7,772 | 2 | 3 |
Pfizer Inc. | 2020 Form 10-K |
33
|
PRODUCT | DISEASE AREA | APPROVED/FILED* | ||||||||||||
U.S. | EU | JAPAN | ||||||||||||
PF-07302048 (COVID-19 Vaccine)(a)
|
Immunization to prevent COVID-19 (16 years of age and older) |
EUA
Dec.
2020
|
CMA
Dec.
2020
|
Approved Feb.
2021
|
||||||||||
Bavencio
(avelumab)(b)
|
First-line maintenance urothelial cancer |
Approved
June
2020
|
Approved
Jan.
2021
|
Filed
May
2020
|
||||||||||
First-line RCC (combination with Inlyta (axitinib))
|
Approved
Dec.
2019
|
|||||||||||||
Nyvepria (pegfilgrastim-apgf) |
Neutropenia in patients undergoing cancer chemotherapy (biosimilar)
|
Approved
June
2020
|
Approved
Nov.
2020
|
|||||||||||
Braftovi (encorafenib)(c)
|
Second or third-line BRAFv600E-mutant mCRC (combination with Erbitux® (cetuximab))
|
Approved
April
2020
|
Approved
June
2020
|
Approved
Nov.
2020
|
||||||||||
Braftovi (encorafenib) and Mektovi (binimetinib)(c)
|
Second or third-line BRAFV600E-mutant mCRC (combination with Erbitux® (cetuximab))
|
Approved
Nov.
2020
|
||||||||||||
Xtandi
(enzalutamide)(d)
|
mCSPC
|
Approved
Dec.
2019
|
Filed
July
2019
|
|||||||||||
Abrilada (U.S.); Amsparity (EU)
(adalimumab-afzb)(e)
|
RA (biosimilar)
|
Approved
Nov.
2019
|
Approved Feb.
2020
|
|||||||||||
abrocitinib (PF-04965842) | Atopic dermatitis |
Filed
Oct.
2020
|
Filed
Oct.
2020
|
Filed
Dec.
2020
|
||||||||||
Infliximab Pfizer (infliximab) | Ankylosing spondylitis (biosimilar) |
Approved
Oct.
2020
|
||||||||||||
Bevacizumab Pfizer (bevacizumab) | Non-small cell lung cancer (biosimilar) |
Approved
Sept.
2020
|
||||||||||||
Rituximab Pfizer (rituximab) | Chronic idiopathic thrombocytopenic purpura (biosimilar) |
Approved
Aug.
2020
|
||||||||||||
tanezumab(f)
|
Chronic pain due to moderate-to-severe osteoarthritis |
Filed
March
2020
|
Filed
March
2020
|
Filed
Aug.
2020
|
||||||||||
Bosulif
(bosutinib) |
First-line chronic myelogenous leukemia |
Approved
June
2020
|
||||||||||||
Daurismo
(glasdegib) |
Combination with low-dose cytarabine for AML
|
Approved
June
2020
|
||||||||||||
Ruxience
(rituximab) |
Follicular lymphoma (biosimilar)
|
Approved
April
2020
|
||||||||||||
Staquis
(crisaborole) |
Atopic dermatitis |
Approved
March
2020
|
||||||||||||
Vyndaqel
(tafamidis free acid)
|
ATTR-CM |
Approved
Feb.
2020
|
||||||||||||
Xeljanz
(tofacitinib) |
Modified release 11 mg tablet for RA (combination with methotrexate)
|
Approved
Dec.
2019
|
||||||||||||
Ankylosing spondylitis |
Filed
Aug.
2020
|
|||||||||||||
Relugolix(g)
|
Uterine fibroids (combination with estradiol and norethindrone acetate)
|
Filed
Aug.
2020
|
||||||||||||
Lorbrena
(lorlatinib)
|
First- line ALK-positive non-small cell lung cancer
|
Filed
Dec.
2020
|
||||||||||||
somatrogon (PF-06836922)(h)
|
Pediatric growth hormone deficiency
|
Filed
Jan.
2021
|
||||||||||||
PF-06482077 (Vaccine)
|
Invasive and non-invasive pneumococcal infections (adults)
|
Filed
Dec.
2020
|
Pfizer Inc. | 2020 Form 10-K |
34
|
PRODUCT/CANDIDATE | PROPOSED DISEASE AREA | |||||||
LATE-STAGE CLINICAL PROGRAMS FOR ADDITIONAL USES AND DOSAGE FORMS
FOR IN-LINE AND IN-REGISTRATION PRODUCTS |
Bavencio (avelumab)(a)
|
First-line non-small cell lung cancer
|
||||||
Ibrance (palbociclib)(b)
|
ER+/HER2+ metastatic breast cancer
|
|||||||
Xtandi (enzalutamide)(c)
|
Non-metastatic high-risk castration sensitive prostate cancer
|
|||||||
Talzenna (talazoparib) |
Combination with Xtandi (enzalutamide) for first-line mCRPC
|
|||||||
PF-06482077 (Vaccine) | Invasive and non-invasive pneumococcal infections (pediatric) | |||||||
somatrogon (PF-06836922)(d)
|
Adult growth hormone deficiency | |||||||
tanezumab(e)
|
Cancer pain | |||||||
Braftovi (encorafenib) and Erbitux® (cetuximab)(f)
|
First-line BRAFv600E-mutant mCRC
|
|||||||
Relugolix(g)
|
Combination with estradiol and norethindrone acetate for endometriosis
|
|||||||
NEW DRUG CANDIDATES IN LATE-STAGE DEVELOPMENT |
aztreonam-avibactam
(PF-06947387) |
Treatment of infections caused by Gram-negative bacteria for which there are limited or no treatment options | ||||||
fidanacogene elaparvovec (PF-06838435) | Hemophilia B | |||||||
Giroctocogene
fitelparvovec
(SB-525 or PF-07055480)
|
Hemophilia A | |||||||
PF-06425090 (Vaccine) | Primary clostridioides difficile infection | |||||||
PF-06886992 (Vaccine) | Serogroups meningococcal (adolescent and young adults) | |||||||
PF-06928316 (Vaccine) | Respiratory syncytial virus infection (maternal) | |||||||
PF-07265803 | Dilated cardiomyopathy due to Lamin A/C gene mutation | |||||||
ritlecitinib (PF-06651600) | Alopecia areata | |||||||
sasanlimab (PF-06801591) | Non-muscle-invasive bladder cancer | |||||||
PF-06939926 | Duchenne muscular dystrophy | |||||||
marstacimab (PF-06741086) | Hemophilia |
Pfizer Inc. | 2020 Form 10-K |
35
|
Costs and expenses follow:
|
||||||||||||||||||||||||||||||||
Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | 20/19 | 19/18 | |||||||||||||||||||||||||||
Cost of sales | $ | 8,692 | $ | 8,251 | $ | 8,987 | 5 | (8) | ||||||||||||||||||||||||
Percentage of Revenues
|
20.7 | % | 20.0 | % | 22.0 | % | ||||||||||||||||||||||||||
Selling, informational and administrative expenses | 11,615 | 12,750 | 12,612 | (9) | 1 | |||||||||||||||||||||||||||
Percentage of Revenues
|
27.7 | % | 31.0 | % | 30.9 | % | ||||||||||||||||||||||||||
Research and development expenses | 9,405 | 8,394 | 7,760 | 12 | 8 | |||||||||||||||||||||||||||
Percentage of Revenues
|
22.4 | % | 20.4 | % | 19.0 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | 3,436 | 4,462 | 4,736 | (23) | (6) | |||||||||||||||||||||||||||
Percentage of Revenues
|
8.2 | % | 10.8 | % | 11.6 | % | ||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related
costs
|
600 | 601 | 1,058 | — | (43) | |||||||||||||||||||||||||||
Percentage of Revenues
|
1.4 | % | 1.5 | % | 2.6 | % | ||||||||||||||||||||||||||
Other (income)/deductions—net | 669 | 3,314 | 2,077 | (80) | 60 |
Pfizer Inc. | 2020 Form 10-K |
36
|
Pfizer Inc. | 2020 Form 10-K |
37
|
Year Ended December 31, | % Change | |||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | 20/19 | 19/18 | |||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | $ | 477 | $ | 618 | $ | (266) | (23) | * | ||||||||||||||||||||||||
Effective tax rate on continuing operations
|
6.4 | % | 5.4 | % | (7.4) | % |
Measure | Definition | Illustrative Use | ||||||||||||
Adjusted income |
Net income attributable to Pfizer Inc. common shareholders(a)
before the impact of purchase accounting for acquisitions, acquisition-related costs, discontinued operations and certain significant items
|
•Monthly managerial analysis of our operating results and our annual budgets are prepared using these non-GAAP measures
•Senior management’s compensation is determined, in part, using these non-GAAP measures(b)
|
||||||||||||
Adjusted cost of sales, Adjusted selling, informational and administrative expenses, Adjusted research and development expenses, Adjusted other (income)/deductions––net
|
Cost of sales, Selling, informational and administrative expenses, Research and development expenses, Amortization of intangible assets and Other (income)/deductions––net (a), each before the impact of purchase accounting for acquisitions, acquisition-related costs, discontinued operations and certain significant items, which are components of the Adjusted income measure
|
|||||||||||||
Adjusted diluted EPS |
EPS attributable to Pfizer Inc. common shareholders––diluted (a) before the impact of purchase accounting for acquisitions, acquisition-related costs, discontinued operations and certain significant items
|
Pfizer Inc. | 2020 Form 10-K |
38
|
Pfizer Inc. | 2020 Form 10-K |
39
|
2020 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Costs(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 41,908 | $ | — | $ | — | $ | — | $ | — | $ | 41,908 | ||||||||||||||||||||||||||
Cost of sales | 8,692 | 18 | — | — | (118) | 8,592 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
11,615 | (2) | — | — | (489) | 11,124 | ||||||||||||||||||||||||||||||||
Research and development expenses | 9,405 | 5 | — | — | (526) | 8,884 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 3,436 | (3,152) | — | — | — | 284 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
600 | — | (44) | — | (556) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
(6) | — | — | — | 6 | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 669 | (75) | — | — | (2,068) | (1,474) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income
|
7,497 | 3,206 | 44 | — | 3,752 | 14,499 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
477 | 668 | 9 | — | 803 | 1,957 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 7,021 | 2,537 | 35 | — | 2,948 | 12,541 | ||||||||||||||||||||||||||||||||
Income from discontinued operations––net of tax | 2,631 | — | — | (2,631) | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
36 | — | — | — | — | 36 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | 9,616 | 2,537 | 35 | (2,631) | 2,948 | 12,506 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | 1.71 | 0.45 | 0.01 | (0.47) | 0.52 | 2.22 |
2019 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Costs(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 41,172 | $ | — | $ | — | $ | — | $ | — | $ | 41,172 | ||||||||||||||||||||||||||
Cost of sales | 8,251 | 19 | — | — | (208) | 8,062 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
12,750 | 2 | (2) | — | (263) | 12,488 | ||||||||||||||||||||||||||||||||
Research and development expenses | 8,394 | 4 | — | — | (663) | 7,736 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 4,462 | (4,191) | — | — | — | 271 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
601 | — | (183) | — | (418) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
(8,086) | — | — | — | 8,086 | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 3,314 | (21) | — | — | (3,563) | (270) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income
|
11,485 | 4,186 | 185 | — | (2,971) | 12,885 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
618 | 823 | 59 | — | 539 | 2,039 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 10,867 | 3,363 | 126 | — | (3,510) | 10,846 | ||||||||||||||||||||||||||||||||
Income from discontinued operations––net of tax | 5,435 | — | — | (5,435) | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
29 | — | — | — | — | 29 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | 16,273 | 3,363 | 126 | (5,435) | (3,510) | 10,817 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | 2.87 | 0.59 | 0.02 | (0.96) | (0.62) | 1.91 |
Pfizer Inc. | 2020 Form 10-K |
40
|
2018 | ||||||||||||||||||||||||||||||||||||||
IN MILLIONS, EXCEPT PER COMMON SHARE DATA | GAAP Reported |
Purchase Accounting Adjustments(a)
|
Acquisition-Related Costs(a)
|
Discontinued Operations(a)
|
Certain Significant Items(a)
|
Non-GAAP Adjusted | ||||||||||||||||||||||||||||||||
Revenues | $ | 40,825 | $ | — | $ | — | $ | — | $ | — | $ | 40,825 | ||||||||||||||||||||||||||
Cost of sales | 8,987 | 3 | (10) | — | (105) | 8,874 | ||||||||||||||||||||||||||||||||
Selling, informational and administrative expenses
|
12,612 | 2 | (2) | — | (191) | 12,420 | ||||||||||||||||||||||||||||||||
Research and development expenses | 7,760 | 3 | — | — | (47) | 7,716 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 4,736 | (4,456) | — | — | — | 280 | ||||||||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
1,058 | — | (299) | — | (759) | — | ||||||||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction
|
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other (income)/deductions––net | 2,077 | (182) | (7) | — | (2,520) | (631) | ||||||||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income
|
3,594 | 4,630 | 318 | — | 3,622 | 12,164 | ||||||||||||||||||||||||||||||||
Provision/(benefit) for taxes on income(b)
|
(266) | 888 | 54 | — | 1,509 | 2,185 | ||||||||||||||||||||||||||||||||
Income from continuing operations | 3,861 | 3,741 | 264 | — | 2,113 | 9,979 | ||||||||||||||||||||||||||||||||
Income from discontinued operations––net of tax | 7,328 | — | — | (7,328) | — | — | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
36 | — | — | — | — | 36 | ||||||||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | 11,153 | 3,741 | 264 | (7,328) | 2,113 | 9,944 | ||||||||||||||||||||||||||||||||
Earnings per common share attributable to Pfizer Inc. common shareholders––diluted | 1.87 | 0.63 | 0.04 | (1.23) | 0.35 | 1.66 |
Pfizer Inc. | 2020 Form 10-K |
41
|
Year Ended December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||
Purchase accounting adjustments | ||||||||||||||||||||
Amortization, depreciation and other(a)
|
$ | 3,224 | $ | 4,205 | $ | 4,633 | ||||||||||||||
Cost of sales | (18) | (19) | (3) | |||||||||||||||||
Total purchase accounting adjustments—pre-tax
|
3,206 | 4,186 | 4,630 | |||||||||||||||||
Income taxes(b)
|
(668) | (823) | (888) | |||||||||||||||||
Total purchase accounting adjustments—net of tax
|
2,537 | 3,363 | 3,741 | |||||||||||||||||
Acquisition-related items | ||||||||||||||||||||
Restructuring charges/(credits)(c)
|
— | (192) | 37 | |||||||||||||||||
Transaction costs(c)
|
10 | 63 | 1 | |||||||||||||||||
Integration costs and other(c)
|
34 | 311 | 260 | |||||||||||||||||
Net periodic benefit costs/(credits) other than service costs(d)
|
— | — | 7 | |||||||||||||||||
Additional depreciation—asset restructuring(e)
|
— | 3 | 12 | |||||||||||||||||
Total acquisition-related items—pre-tax | 44 | 185 | 318 | |||||||||||||||||
Income taxes(f)
|
(9) | (59) | (54) | |||||||||||||||||
Total acquisition-related items—net of tax | 35 | 126 | 264 | |||||||||||||||||
Discontinued operations | ||||||||||||||||||||
Income from discontinued operations—net of tax(g)
|
(2,631) | (5,435) | (7,328) | |||||||||||||||||
Certain significant items | ||||||||||||||||||||
Restructuring charges/(credits)––cost reduction initiatives(h)
|
556 | 418 | 759 | |||||||||||||||||
Implementation costs and additional depreciation—asset restructuring(i)
|
257 | 192 | 212 | |||||||||||||||||
Net (gains)/losses on asset disposals(d)
|
238 | — | — | |||||||||||||||||
Net (gains)/losses recognized during the period on equity securities(d)
|
(557) | (415) | (586) | |||||||||||||||||
Certain legal matters, net(d)
|
24 | 291 | 84 | |||||||||||||||||
Certain asset impairments(d)
|
1,691 | 2,798 | 3,101 | |||||||||||||||||
Business and legal entity alignment costs(j)
|
270 | 412 | 63 | |||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction(k)
|
(6) | (8,086) | — | |||||||||||||||||
Other(l)
|
1,278 | 1,418 | (10) | |||||||||||||||||
Total certain significant items—pre-tax
|
3,752 | (2,971) | 3,622 | |||||||||||||||||
Income taxes(m)
|
(803) | (539) | (1,509) | |||||||||||||||||
Total certain significant items—net of tax
|
2,948 | (3,510) | 2,113 | |||||||||||||||||
Total purchase accounting adjustments, acquisition-related items, discontinued operations and certain significant items—net of tax, attributable to Pfizer Inc. | $ | 2,890 | $ | (5,455) | $ | (1,209) |
Pfizer Inc. | 2020 Form 10-K |
42
|
Pfizer Inc. | 2020 Form 10-K |
43
|
Year Ended December 31, | ||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | Drivers of change | ||||||||||||||||||||||
Cash provided by/(used in): | ||||||||||||||||||||||||||
Operating activities from continuing operations | $ | 10,586 | $ | 7,011 | $ | 8,875 |
2020 v. 2019
The change is driven mainly by higher net income adjusted for non-cash items, advanced payments in 2020 for BNT162b2 recorded in deferred revenue, the upfront cash payment associated with our acquisition of Therachon in 2019, and the upfront cash payment associated with our licensing agreement with Akcea in 2019, partially offset by an increase in benefit plan contributions.
The change also reflects the impact of timing of receipts and payments in the ordinary course of business.
The change in Other adjustments, net is driven primarily by an increase in equity method dividends received, partially offset by an increase in equity income and increases in net unrealized gains on equity securities.
2019 v. 2018
The change is driven mostly by the upfront cash payments in 2019 associated with our acquisition of Therachon and our licensing agreement with Akcea, partially offset by a decrease in benefit plan contributions.
The change also reflects the impact of timing of receipts and payments in the ordinary course of business.
The change in Other adjustments, net is driven primarily by a non-cash gain in 2018 associated with our transaction with Bain Capital to create a new biopharmaceutical company, Cerevel, and a non-cash gain in 2018 on the contribution of Pfizer’s allogeneic CAR T developmental program assets, partially offset by net gains on foreign exchange hedging of our intercompany inventory sales.
|
|||||||||||||||||||
Investing activities from continuing operations | $ | (4,188) | $ | (3,852) | $ | 4,584 |
2020 v. 2019
The change is driven mostly by a $6.0 billion decrease in net proceeds from short-term investments with original maturities of three months or less and $2.7 billion in net purchases of short-term investments with original maturities of greater than three months in 2020 (compared to $2.3 billion net proceeds from short-term investments with original maturities of greater than three months in 2019), partially offset by the cash used to acquire Array, net of cash acquired, of $10.9 billion in 2019.
2019 v. 2018
The change is driven primarily by cash used for the acquisition of Array, net of cash acquired, of $10.9 billion in 2019, partially offset by an increase in net proceeds generated from the sale of investments of $2.9 billion for cash needs, including financing the acquisition of Array.
|
|||||||||||||||||||
Financing activities from continuing operations | $ | (21,640) | $ | (8,485) | $ | (20,441) |
2020 v. 2019
The change is driven primarily by $14.0 billion net payments on short-term borrowings in 2020 (compared to $10.6 billion net proceeds raised from short-term borrowings in 2019) and an increase in cash dividends paid of $397 million, partially offset by a decrease in purchases of common stock of $8.9 billion, lower repayments on long-term debt of $2.8 billion, and an increase in issuances of long-term debt of $280 million.
2019 v. 2018
The change is driven mostly by $10.6 billion of net proceeds raised from short-term borrowings in 2019, primarily in connection with the acquisition of Array (compared to net payments on short-term borrowings of $2.3 billion in 2018) and lower purchases of common stock of $3.3 billion, partially offset by higher repayments on long-term debt of $3.2 billion and lower proceeds from the exercise of stock options of $864 million.
|
|||||||||||||||||||
Pfizer Inc. | 2020 Form 10-K |
44
|
Pfizer Inc. | 2020 Form 10-K |
45
|
The current ratings assigned to our commercial paper and senior unsecured long-term debt: | ||||||||||||||||||||||||||
NAME OF RATING AGENCY |
Pfizer
Short-Term |
Pfizer
Long-Term |
Outlook/Watch | Date of Last Rating Change | ||||||||||||||||||||||
Rating | Rating | |||||||||||||||||||||||||
Moody’s | P-1 | A2 | Stable | November 2020 | ||||||||||||||||||||||
S&P | A-1+ | A+ | Stable | November 2020 |
Pfizer Inc. | 2020 Form 10-K |
46
|
Years | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Total |
2021
|
2022-
2023
|
2024-
2025
|
There-after | |||||||||||||||||||||||||||||||||
Long-term debt, including current portion(a)
|
$ | 39,135 | $ | 2,002 | $ | 4,346 | $ | 3,068 | $ | 29,719 |
Consists of senior unsecured notes (including fixed and floating rate, foreign currency denominated, and other notes). Commitments under financing leases are not significant.
|
|||||||||||||||||||||||||||
Interest payments on long-term debt obligations(a)
|
21,122 | 1,390 | 2,746 | 2,455 | 14,530 |
Incorporates only current period assumptions for interest rates, foreign currency translation rates and hedging strategies, and assumes that interest is accrued through the maturity date or expiration of the related instrument.
|
||||||||||||||||||||||||||||||||
Other long-term liabilities(b)
|
2,070 | 383 | 451 | 381 | 855 |
Includes expected payments relating to our unfunded U.S. supplemental (non-qualified) pension plans, postretirement plans and deferred compensation plans. Excludes amounts relating to our U.S. qualified pension plans and international pension plans, all of which have a substantial amount of plan assets, because the required funding obligations are not expected to be material and/or because such liabilities do not necessarily reflect future cash payments, as the impact of changes in economic conditions on the fair value of the pension plan assets and/or liabilities can be significant. Also, excludes $4.2 billion of liabilities related to the fair value of derivative financial instruments, legal matters and employee terminations, among other liabilities, most of which do not represent contractual obligations.
|
||||||||||||||||||||||||||||||||
Operating leases(c)
|
3,312 | 357 | 638 | 460 | 1,856 |
Includes future minimum rental commitments under non-cancelable operating leases, including an agreement to lease space in an office building in New York City.
|
||||||||||||||||||||||||||||||||
Purchase obligations and other(d)
|
3,793 | 847 | 1,470 | 933 | 543 |
Includes agreements to purchase goods and services that are enforceable and legally binding and includes amounts relating to advertising, information technology services, employee benefit administration services, and potential milestone payments deemed reasonably likely to occur.
|
||||||||||||||||||||||||||||||||
Other taxes payable—deemed repatriated accumulated post-1986 earnings of foreign subsidiaries(e)
|
9,000 | 700 | 1,700 | 3,700 | 2,900 |
Represents estimated cash payments related to the TCJA repatriation tax liability.
|
||||||||||||||||||||||||||||||||
Uncertain tax positions(e)
|
42 | 42 | — | — | — |
Includes only income tax amounts currently payable. We are unable to predict the timing of tax settlements related to our noncurrent obligations for uncertain tax positions as tax audits can involve complex issues and the resolution of those issues may span multiple years, particularly if subject to negotiation or litigation.
|
Pfizer Inc. | 2020 Form 10-K |
47
|
Recently Issued Accounting Standards, Not Adopted as of December 31, 2020
|
||||||||||||||
Standard/Description | Effective Date | Effect on the Financial Statements | ||||||||||||
Accounting for income taxes eliminates 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. | We do not expect this guidance to have a material impact on our consolidated financial statements. | ||||||||||||
Reference rate reform provides 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. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Pfizer Inc. | 2020 Form 10-K |
48
|
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Pfizer Inc. | 2020 Form 10-K |
49
|
KPMG LLP | ||
We have not been able to determine the specific year that KPMG and our predecessor firms began serving as the Company’s auditor, however, we are aware that KPMG and our predecessor firms have served as the Company’s auditor since at least 1942. | ||
New York, New York | ||
February 25, 2021 |
Pfizer Inc. | 2020 Form 10-K |
50
|
Year Ended December 31, | |||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PER COMMON SHARE DATA) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Revenues | $ | 41,908 | $ | 41,172 | $ | 40,825 | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of sales(a)
|
8,692 | 8,251 | 8,987 | ||||||||||||||||||||||||||
Selling, informational and administrative expenses(a)
|
11,615 | 12,750 | 12,612 | ||||||||||||||||||||||||||
Research and development expenses(a)
|
9,405 | 8,394 | 7,760 | ||||||||||||||||||||||||||
Amortization of intangible assets | 3,436 | 4,462 | 4,736 | ||||||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs
|
600 | 601 | 1,058 | ||||||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction | (6) | (8,086) | — | ||||||||||||||||||||||||||
Other (income)/deductions––net | 669 | 3,314 | 2,077 | ||||||||||||||||||||||||||
Income from continuing operations before provision/(benefit) for taxes on income
|
7,497 | 11,485 | 3,594 | ||||||||||||||||||||||||||
Provision/(benefit) for taxes on income | 477 | 618 | (266) | ||||||||||||||||||||||||||
Income from continuing operations
|
7,021 | 10,867 | 3,861 | ||||||||||||||||||||||||||
Income from discontinued operations––net of tax | 2,631 | 5,435 | 7,328 | ||||||||||||||||||||||||||
Net income before allocation to noncontrolling interests
|
9,652 | 16,302 | 11,188 | ||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 36 | 29 | 36 | ||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders | $ | 9,616 | $ | 16,273 | $ | 11,153 | |||||||||||||||||||||||
Earnings per common share––basic:
|
|||||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 1.26 | $ | 1.95 | $ | 0.65 | |||||||||||||||||||||||
Income from discontinued operations––net of tax | 0.47 | 0.98 | 1.25 | ||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 1.73 | $ | 2.92 | $ | 1.90 | |||||||||||||||||||||||
Earnings per common share––diluted:
|
|||||||||||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 1.24 | $ | 1.91 | $ | 0.64 | |||||||||||||||||||||||
Income from discontinued operations––net of tax | 0.47 | 0.96 | 1.23 | ||||||||||||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 1.71 | $ | 2.87 | $ | 1.87 | |||||||||||||||||||||||
Weighted-average shares––basic | 5,555 | 5,569 | 5,872 | ||||||||||||||||||||||||||
Weighted-average shares––diluted | 5,632 | 5,675 | 5,977 |
Pfizer Inc. | 2020 Form 10-K |
51
|
Year Ended December 31, | ||||||||||||||||||||
(MILLIONS) | 2020 | 2019 | 2018 | |||||||||||||||||
Net income before allocation to noncontrolling interests | $ | 9,652 | $ | 16,302 | $ | 11,188 | ||||||||||||||
Foreign currency translation adjustments, net | $ | 957 | $ | 654 | $ | (799) | ||||||||||||||
Reclassification adjustments | (17) | (288) | (22) | |||||||||||||||||
940 | 366 | (821) | ||||||||||||||||||
Unrealized holding gains/(losses) on derivative financial instruments, net | (582) | 476 | 220 | |||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(a)
|
21 | (664) | 27 | |||||||||||||||||
(561) | (188) | 247 | ||||||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities, net | 361 | (1) | (185) | |||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income(b)
|
(188) | 39 | 124 | |||||||||||||||||
Reclassification adjustments for unrealized gains included in Retained earnings(c)
|
— | — | (462) | |||||||||||||||||
173 | 38 | (522) | ||||||||||||||||||
Benefit plans: actuarial gains/(losses), net | (1,128) | (826) | (649) | |||||||||||||||||
Reclassification adjustments related to amortization | 276 | 241 | 242 | |||||||||||||||||
Reclassification adjustments related to settlements, net | 278 | 274 | 142 | |||||||||||||||||
Other | (189) | 22 | 112 | |||||||||||||||||
(763) | (289) | (153) | ||||||||||||||||||
Benefit plans: prior service (costs)/credits and other, net | 52 | (7) | (9) | |||||||||||||||||
Reclassification adjustments related to amortization of prior service costs and other, net | (176) | (181) | (181) | |||||||||||||||||
Reclassification adjustments related to curtailments of prior service costs and other, net | — | (2) | (19) | |||||||||||||||||
Other | — | 1 | 2 | |||||||||||||||||
(124) | (189) | (207) | ||||||||||||||||||
Other comprehensive income/(loss), before tax | (335) | (262) | (1,457) | |||||||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss)(d)
|
(349) | 115 | 518 | |||||||||||||||||
Other comprehensive income/(loss) before allocation to noncontrolling interests | $ | 14 | $ | (376) | $ | (1,975) | ||||||||||||||
Comprehensive income before allocation to noncontrolling interests
|
$ | 9,666 | $ | 15,926 | $ | 9,214 | ||||||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interests | 27 | 18 | 16 | |||||||||||||||||
Comprehensive income attributable to Pfizer Inc.
|
$ | 9,639 | $ | 15,908 | $ | 9,198 |
Pfizer Inc. | 2020 Form 10-K |
52
|
As of December 31, | ||||||||||||||
(MILLIONS, EXCEPT PREFERRED STOCK ISSUED AND PER COMMON SHARE DATA) | 2020 | 2019 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 1,784 | $ | 1,121 | ||||||||||
Short-term investments | 10,437 | 8,525 | ||||||||||||
Trade accounts receivable, less allowance for doubtful accounts: 2020—$508; 2019—$493
|
7,930 | 6,772 | ||||||||||||
Inventories | 8,046 | 7,068 | ||||||||||||
Current tax assets | 3,264 | 2,736 | ||||||||||||
Other current assets | 3,438 | 2,357 | ||||||||||||
Current assets of discontinued operations and other assets held for sale | 167 | 4,224 | ||||||||||||
Total current assets | 35,067 | 32,803 | ||||||||||||
Equity-method investments | 16,856 | 17,133 | ||||||||||||
Long-term investments | 3,406 | 3,014 | ||||||||||||
Property, plant and equipment | 13,900 | 12,969 | ||||||||||||
Identifiable intangible assets | 28,471 | 33,936 | ||||||||||||
Goodwill | 49,577 | 48,202 | ||||||||||||
Noncurrent deferred tax assets and other noncurrent tax assets | 2,383 | 1,911 | ||||||||||||
Other noncurrent assets | 4,569 | 4,199 | ||||||||||||
Noncurrent assets of discontinued operations | — | 13,427 | ||||||||||||
Total assets | $ | 154,229 | $ | 167,594 | ||||||||||
Liabilities and Equity | ||||||||||||||
Short-term borrowings, including current portion of long-term debt: 2020—$2,002; 2019—$1,462
|
$ | 2,703 | $ | 16,195 | ||||||||||
Trade accounts payable | 4,309 | 3,887 | ||||||||||||
Dividends payable | 2,162 | 2,104 | ||||||||||||
Income taxes payable | 1,049 | 980 | ||||||||||||
Accrued compensation and related items | 3,058 | 2,390 | ||||||||||||
Other current liabilities | 12,640 | 9,334 | ||||||||||||
Current liabilities of discontinued operations | — | 2,413 | ||||||||||||
Total current liabilities | 25,920 | 37,304 | ||||||||||||
Long-term debt | 37,133 | 35,955 | ||||||||||||
Pension benefit obligations | 4,766 | 5,291 | ||||||||||||
Postretirement benefit obligations | 645 | 926 | ||||||||||||
Noncurrent deferred tax liabilities | 4,063 | 5,652 | ||||||||||||
Other taxes payable | 11,560 | 12,126 | ||||||||||||
Other noncurrent liabilities | 6,669 | 6,894 | ||||||||||||
Total liabilities | 90,756 | 104,148 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Preferred stock, no par value, at stated value; 27 shares authorized; issued: 2020—0; 2019—431
|
— | 17 | ||||||||||||
Common stock, $0.05 par value; 12,000 shares authorized; issued: 2020—9,407; 2019—9,369
|
470 | 468 | ||||||||||||
Additional paid-in capital | 88,674 | 87,428 | ||||||||||||
Treasury stock, shares at cost: 2020—3,840; 2019—3,835
|
(110,988) | (110,801) | ||||||||||||
Retained earnings | 96,770 | 97,670 | ||||||||||||
Accumulated other comprehensive loss | (11,688) | (11,640) | ||||||||||||
Total Pfizer Inc. shareholders’ equity | 63,238 | 63,143 | ||||||||||||
Equity attributable to noncontrolling interests | 235 | 303 | ||||||||||||
Total equity | 63,473 | 63,447 | ||||||||||||
Total liabilities and equity | $ | 154,229 | $ | 167,594 |
Pfizer Inc. | 2020 Form 10-K |
53
|
PFIZER INC. SHAREHOLDERS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS, EXCEPT PREFERRED SHARES AND PER SHARE AMOUNTS) | 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, 2018 | 524 | $ | 21 | 9,275 | $ | 464 | $ | 84,278 | (3,296) | $ | (89,425) | $ | 85,291 | $ | (9,321) | $ | 71,308 | $ | 348 | $ | 71,656 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 11,153 | 11,153 | 36 | 11,188 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
(1,955) | (1,955) | (20) | (1,975) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $1.38
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(8,060) | (8,060) | (8,060) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
(1) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (12) | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions | 57 | 3 | 1,977 | (12) | 13 | 1,993 | 1,993 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
(307) | (12,198) | (12,198) | (12,198) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions
|
(46) | (2) | (3) | — | — | (4) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(a)
|
— | — | 1,172 | 1,172 | — | 1,172 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 478 | 19 | 9,332 | 467 | 86,253 | (3,615) | (101,610) | 89,554 | (11,275) | 63,407 | 351 | 63,758 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 16,273 | 16,273 | 29 | 16,302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
(365) | (365) | (11) | (376) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $1.46
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(8,174) | (8,174) | (8,174) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
(1) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (6) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
37 | 2 | 1,219 | (8) | (326) | 894 | 894 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of common stock
|
(213) | (8,865) | (8,865) | (8,865) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions
|
(47) | (2) | (3) | — | 1 | (4) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (40) | — | — | 19 | (21) | (60) | (81) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 431 | 17 | 9,369 | 468 | 87,428 | (3,835) | (110,801) | 97,670 | (11,640) | 63,143 | 303 | 63,447 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 9,616 | 9,616 | 36 | 9,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
23 | 23 | (9) | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, per share: $1.53
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock
|
(8,571) | (8,571) | (8,571) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock
|
— | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests
|
— | (91) | (91) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payment transactions
|
37 | 2 | 1,261 | (6) | (218) | 1,044 | 1,044 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions and redemptions(b)
|
(431) | (17) | (15) | 1 | 31 | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution of Upjohn Business(c)
|
(1,944) | (71) | (2,015) | (3) | (2,018) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | — | $ | — | 9,407 | $ | 470 | $ | 88,674 | (3,840) | $ | (110,988) | $ | 96,770 | $ | (11,688) | $ | 63,238 | $ | 235 | $ | 63,473 |
Pfizer Inc. | 2020 Form 10-K |
54
|
Year Ended December 31, | ||||||||||||||||||||
(MILLIONS) | 2020 | 2019 | 2018 | |||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income before allocation to noncontrolling interests | $ | 9,652 | $ | 16,302 | $ | 11,188 | ||||||||||||||
Income from discontinued operations—net of tax | 2,631 | 5,435 | 7,328 | |||||||||||||||||
Net income from continuing operations before allocation to noncontrolling interests | 7,021 | 10,867 | 3,861 | |||||||||||||||||
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash provided by operating activities:
|
||||||||||||||||||||
Depreciation and amortization | 4,777 | 5,795 | 6,150 | |||||||||||||||||
Asset write-offs and impairments | 2,049 | 2,941 | 3,398 | |||||||||||||||||
TCJA impact | — | (323) | (596) | |||||||||||||||||
Gain on completion of Consumer Healthcare JV transaction, net of cash conveyed(a)
|
(6) | (8,233) | — | |||||||||||||||||
Deferred taxes from continuing operations | (1,468) | 596 | (2,204) | |||||||||||||||||
Share-based compensation expense | 756 | 688 | 923 | |||||||||||||||||
Benefit plan contributions in excess of expense/income | (1,790) | (288) | (1,057) | |||||||||||||||||
Other adjustments, net | (478) | (1,080) | (1,266) | |||||||||||||||||
Other changes in assets and liabilities, net of acquisitions and divestitures: | ||||||||||||||||||||
Trade accounts receivable | (1,249) | (1,140) | (458) | |||||||||||||||||
Inventories | (736) | (1,080) | (432) | |||||||||||||||||
Other assets | (146) | 840 | (52) | |||||||||||||||||
Trade accounts payable | 353 | (340) | 404 | |||||||||||||||||
Other liabilities | 2,741 | 851 | 367 | |||||||||||||||||
Other tax accounts, net | (1,238) | (3,084) | (163) | |||||||||||||||||
Net cash provided by operating activities from continuing operations | 10,586 | 7,011 | 8,875 | |||||||||||||||||
Net cash provided by operating activities from discontinued operations | 3,817 | 5,576 | 6,952 | |||||||||||||||||
Net cash provided by operating activities | 14,403 | 12,588 | 15,827 | |||||||||||||||||
Investing Activities | ||||||||||||||||||||
Purchases of property, plant and equipment | (2,252) | (2,072) | (1,984) | |||||||||||||||||
Purchases of short-term investments | (13,805) | (6,835) | (11,677) | |||||||||||||||||
Proceeds from redemptions/sales of short-term investments | 11,087 | 9,183 | 17,581 | |||||||||||||||||
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less
|
920 | 6,925 | (3,917) | |||||||||||||||||
Purchases of long-term investments | (597) | (201) | (1,797) | |||||||||||||||||
Proceeds from redemptions/sales of long-term investments | 723 | 232 | 6,244 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (10,861) | — | |||||||||||||||||
Acquisitions of intangible assets | (539) | (418) | (152) | |||||||||||||||||
Other investing activities, net(a)
|
274 | 195 | 287 | |||||||||||||||||
Net cash provided by/(used in) investing activities from continuing operations | (4,188) | (3,852) | 4,584 | |||||||||||||||||
Net cash provided by/(used in) investing activities from discontinued operations | (82) | (94) | (60) | |||||||||||||||||
Net cash provided by/(used in) investing activities
|
(4,271) | (3,945) | 4,525 | |||||||||||||||||
Financing Activities | ||||||||||||||||||||
Proceeds from short-term borrowings | 12,352 | 16,455 | 3,711 | |||||||||||||||||
Principal payments on short-term borrowings | (22,197) | (8,378) | (4,437) | |||||||||||||||||
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less | (4,129) | 2,551 | (1,617) | |||||||||||||||||
Proceeds from issuance of long-term debt | 5,222 | 4,942 | 4,974 | |||||||||||||||||
Principal payments on long-term debt | (4,003) | (6,806) | (3,566) | |||||||||||||||||
Purchases of common stock | — | (8,865) | (12,198) | |||||||||||||||||
Cash dividends paid | (8,440) | (8,043) | (7,978) | |||||||||||||||||
Proceeds from exercise of stock options | 425 | 394 | 1,259 | |||||||||||||||||
Other financing activities, net
|
(869) | (736) | (588) | |||||||||||||||||
Net cash provided by/(used in) financing activities from continuing operations | (21,640) | (8,485) | (20,441) | |||||||||||||||||
Net cash provided by/(used in) financing activities from discontinued operations | 11,991 | — | — | |||||||||||||||||
Net cash provided by/(used in) financing activities | (9,649) | (8,485) | (20,441) | |||||||||||||||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents
|
(8) | (32) | (116) | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents
|
475 | 125 | (205) | |||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period | 1,350 | 1,225 | 1,431 | |||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents, at end of period | $ | 1,825 | $ | 1,350 | $ | 1,225 | ||||||||||||||
- Continued - |
Pfizer Inc. | 2020 Form 10-K |
55
|
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Supplemental Cash Flow Information | ||||||||||||||||||||
Cash paid (received) during the period for: | ||||||||||||||||||||
Income taxes | $ | 3,153 | $ | 3,664 | $ | 3,655 | ||||||||||||||
Interest paid | 1,641 | 1,587 | 1,311 | |||||||||||||||||
Interest rate hedges | (20) | (42) | (38) | |||||||||||||||||
Non-cash transactions: | ||||||||||||||||||||
32% equity-method investment in the Consumer Healthcare JV received in exchange for contributing Pfizer’s Consumer Healthcare business(a)
|
$ | — | $ | 15,711 | $ | — | ||||||||||||||
Equity investment in Allogene received in exchange for Pfizer's allogeneic CAR T developmental program assets | — | — | 92 | |||||||||||||||||
Equity investment in Cerevel in exchange for Pfizer’s portfolio of clinical and preclinical neuroscience assets | — | — | 343 |
Pfizer Inc. | 2020 Form 10-K |
56
|
Pfizer Inc. | 2020 Form 10-K |
57
|
Pfizer Inc. | 2020 Form 10-K |
58
|
Pfizer Inc. | 2020 Form 10-K |
59
|
Pfizer Inc. | 2020 Form 10-K |
60
|
Pfizer Inc. | 2020 Form 10-K |
61
|
Pfizer Inc. | 2020 Form 10-K |
62
|
Pfizer Inc. | 2020 Form 10-K |
63
|
Pfizer Inc. | 2020 Form 10-K |
64
|
Components of Income from discontinued operations––net of tax:
|
||||||||||||||||||||||||||
Year Ended December 31,(a)
|
||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Revenues | $ | 7,314 | $ | 10,578 | $ | 12,822 | ||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Cost of sales | 1,899 | 1,976 | 2,261 | |||||||||||||||||||||||
Selling, informational and administrative expenses | 1,665 | 1,599 | 1,842 | |||||||||||||||||||||||
Research and development expenses | 212 | 255 | 246 | |||||||||||||||||||||||
Amortization of intangible assets | 136 | 148 | 157 | |||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 7 | 146 | (14) | |||||||||||||||||||||||
Other (income)/deductions––net | 400 | 253 | 30 | |||||||||||||||||||||||
Pre-tax income from discontinued operations | 2,995 | 6,201 | 8,300 | |||||||||||||||||||||||
Provision for taxes on income | 364 | 766 | 973 | |||||||||||||||||||||||
Income from discontinued operations––net of tax | $ | 2,631 | $ | 5,435 | $ | 7,328 |
Components of assets and liabilities of discontinued operations and other assets held for sale:
|
||||||||||||||||||||
As of December 31,(a)
|
||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 184 | ||||||||||||||||
Trade accounts receivable, less allowance for doubtful accounts | — | 1,952 | ||||||||||||||||||
Inventories | 86 | 1,215 | ||||||||||||||||||
Other current assets | — | 852 | ||||||||||||||||||
Other assets held for sale | 82 | 21 | ||||||||||||||||||
Current assets of discontinued operations and other assets held for sale | $ | 167 | $ | 4,224 | ||||||||||||||||
Property, plant and equipment | $ | — | $ | 998 | ||||||||||||||||
Identifiable intangible assets | — | 1,434 | ||||||||||||||||||
Goodwill | — | 10,451 | ||||||||||||||||||
Other noncurrent assets | — | 544 | ||||||||||||||||||
Noncurrent assets of discontinued operations | $ | — | $ | 13,427 | ||||||||||||||||
Trade accounts payable | $ | — | $ | 334 | ||||||||||||||||
Accrued compensation and related items | — | 330 | ||||||||||||||||||
Other current liabilities | — | 1,749 | ||||||||||||||||||
Current liabilities of discontinued operations | $ | — | $ | 2,413 | ||||||||||||||||
Pension and postretirement benefit obligations | $ | — | $ | 545 | ||||||||||||||||
Other noncurrent liabilities | — | 403 | ||||||||||||||||||
Noncurrent liabilities of discontinued operations(b)
|
$ | — | $ | 948 |
Pfizer Inc. | 2020 Form 10-K |
65
|
Pfizer Inc. | 2020 Form 10-K |
66
|
For the Twelve Months Ending |
For the Two Months
Ending |
|||||||||||||||||||
(MILLIONS OF DOLLARS) | September 30, 2020 | September 30, 2019 | ||||||||||||||||||
Net sales | $ | 12,720 | $ | 2,161 | ||||||||||||||||
Cost of sales | (5,439) | (803) | ||||||||||||||||||
Gross profit | $ | 7,281 | $ | 1,358 | ||||||||||||||||
Income from continuing operations | 1,350 | 152 | ||||||||||||||||||
Net income | 1,350 | 152 | ||||||||||||||||||
Income attributable to shareholders | 1,307 | 148 |
Pfizer Inc. | 2020 Form 10-K |
67
|
Summarized financial information for our equity method investee, ViiV, as of December 31, 2020 and 2019 and for the years ending December 31, 2020, 2019, and 2018 is as follows:
|
||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||||||||
Current assets | $ | 3,283 | $ | 3,839 | ||||||||||||||||
Noncurrent assets | 3,381 | 3,437 | ||||||||||||||||||
Total assets
|
$ | 6,664 | $ | 7,276 | ||||||||||||||||
Current liabilities | $ | 3,028 | $ | 2,904 | ||||||||||||||||
Noncurrent liabilities | 6,370 | 5,860 | ||||||||||||||||||
Total liabilities
|
$ | 9,398 | $ | 8,765 | ||||||||||||||||
Total net equity/(deficit) attributable to shareholders | $ | (2,734) | $ | (1,489) |
Year Ended December 31, | ||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Net sales | $ | 6,224 | $ | 6,139 | $ | 6,219 | ||||||||||||||||||||
Cost of sales | (574) | (516) | (462) | |||||||||||||||||||||||
Gross profit | $ | 5,650 | $ | 5,623 | $ | 5,757 | ||||||||||||||||||||
Income from continuing operations | 2,012 | 3,398 | 2,154 | |||||||||||||||||||||||
Net income | 2,012 | 3,398 | 2,154 | |||||||||||||||||||||||
Income attributable to shareholders | 2,012 | 3,398 | 2,154 |
Pfizer Inc. | 2020 Form 10-K |
68
|
Pfizer Inc. | 2020 Form 10-K |
69
|
Pfizer Inc. | 2020 Form 10-K |
70
|
Components of Other (income)/deductions––net include:
|
||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||
Interest income | $ | (73) | $ | (225) | $ | (333) | ||||||||||||||
Interest expense(a)
|
1,449 | 1,573 | 1,316 | |||||||||||||||||
Net interest expense
|
1,376 | 1,348 | 983 | |||||||||||||||||
Royalty-related income | (770) | (646) | (485) | |||||||||||||||||
Net (gains)/losses on asset disposals | 237 | (32) | (71) | |||||||||||||||||
Net (gains)/losses recognized during the period on equity securities(b)
|
(540) | (454) | (586) | |||||||||||||||||
Net realized (gains)/losses on sales of investments in debt securities(c)
|
— | — | 141 | |||||||||||||||||
Income from collaborations, out-licensing arrangements and sales of compound/product rights(d)
|
(326) | (168) | (476) | |||||||||||||||||
Net periodic benefit costs/(credits) other than service costs(e)
|
(236) | 72 | (270) | |||||||||||||||||
Certain legal matters, net(f)
|
28 | 292 | 84 | |||||||||||||||||
Certain asset impairments(g)
|
1,691 | 2,843 | 3,115 | |||||||||||||||||
Business and legal entity alignment costs(h)
|
— | 300 | 63 | |||||||||||||||||
Consumer Healthcare JV equity method (income)/loss(i)
|
(298) | (17) | — | |||||||||||||||||
Other, net(j)
|
(493) | (226) | (421) | |||||||||||||||||
Other (income)/deductions––net
|
$ | 669 | $ | 3,314 | $ | 2,077 |
Pfizer Inc. | 2020 Form 10-K |
71
|
Pfizer Inc. | 2020 Form 10-K |
72
|
Pfizer Inc. | 2020 Form 10-K |
73
|
The reconciliation of the U.S. statutory income tax rate to our effective tax rate for Income from continuing operations follows:
|
||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
U.S. statutory income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||
TCJA impact(a)
|
— | (2.8) | (16.6) | |||||||||||||||||
Taxation of non-U.S. operations (b), (c)
|
(9.6) | (4.5) | 1.2 | |||||||||||||||||
Tax settlements and resolution of certain tax positions(d)
|
(2.5) | (13.8) | (19.3) | |||||||||||||||||
Completion of Consumer Healthcare JV transaction(d)
|
— | 8.2 | — | |||||||||||||||||
U.S. Healthcare Legislation(e)
|
0.1 | — | (1.1) | |||||||||||||||||
U.S. R&D tax credit | (1.3) | (0.8) | (2.2) | |||||||||||||||||
Interest(f)
|
1.1 | 0.6 | 5.7 | |||||||||||||||||
All other, net(g)
|
(2.4) | (2.5) | 3.9 | |||||||||||||||||
Effective tax rate for income from continuing operations
|
6.4 | % | 5.4 | % | (7.4) | % |
Pfizer Inc. | 2020 Form 10-K |
74
|
Components of our deferred tax assets and liabilities, shown before jurisdictional netting, follow:
|
||||||||||||||||||||||||||
2020 Deferred Tax* | 2019 Deferred Tax* | |||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Assets | (Liabilities) | Assets | (Liabilities) | ||||||||||||||||||||||
Prepaid/deferred items(a)
|
$ | 3,094 | $ | (352) | $ | 1,918 | $ | (204) | ||||||||||||||||||
Inventories | 276 | (25) | 267 | (10) | ||||||||||||||||||||||
Intangible assets(b)
|
793 | (5,355) | 718 | (6,784) | ||||||||||||||||||||||
Property, plant and equipment | 211 | (1,219) | 177 | (1,204) | ||||||||||||||||||||||
Employee benefits | 1,981 | (127) | 2,115 | (37) | ||||||||||||||||||||||
Restructurings and other charges | 291 | — | 212 | — | ||||||||||||||||||||||
Legal and product liability reserves | 382 | — | 469 | — | ||||||||||||||||||||||
Net operating loss/tax credit carryforwards(c)
|
1,761 | — | 2,003 | — | ||||||||||||||||||||||
Unremitted earnings | — | (46) | — | (77) | ||||||||||||||||||||||
State and local tax adjustments | 171 | — | 152 | — | ||||||||||||||||||||||
Investments(d)
|
128 | (3,545) | 11 | (3,318) | ||||||||||||||||||||||
All other | 102 | (57) | 167 | (9) | ||||||||||||||||||||||
9,189 | (10,726) | 8,208 | (11,643) | |||||||||||||||||||||||
Valuation allowances | (1,586) | — | (1,526) | — | ||||||||||||||||||||||
Total deferred taxes | $ | 7,603 | $ | (10,726) | $ | 6,682 | $ | (11,643) | ||||||||||||||||||
Net deferred tax liability(e)
|
$ | (3,123) | $ | (4,961) |
Pfizer Inc. | 2020 Form 10-K |
75
|
The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: | ||||||||||||||||||||
(MILLIONS OF DOLLARS)
|
2020 | 2019 | 2018 | |||||||||||||||||
Balance, beginning | $ | (5,381) | $ | (6,259) | $ | (6,558) | ||||||||||||||
Acquisitions(a)
|
37 | (44) | — | |||||||||||||||||
Divestitures(b)
|
265 | — | — | |||||||||||||||||
Increases based on tax positions taken during a prior period(c)
|
(232) | (36) | (192) | |||||||||||||||||
Decreases based on tax positions taken during a prior period(c), (d)
|
64 | 1,109 | 561 | |||||||||||||||||
Decreases based on settlements for a prior period(e)
|
15 | 100 | 123 | |||||||||||||||||
Increases based on tax positions taken during the current period(c)
|
(411) | (383) | (370) | |||||||||||||||||
Impact of foreign exchange | (72) | 25 | 56 | |||||||||||||||||
Other, net(c), (f)
|
120 | 107 | 121 | |||||||||||||||||
Balance, ending(g)
|
$ | (5,595) | $ | (5,381) | $ | (6,259) |
Pfizer Inc. | 2020 Form 10-K |
76
|
Components of the Tax provision/(benefit) on other comprehensive income/(loss) include:
|
||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net(a)
|
$ | (79) | $ | 254 | $ | 94 | ||||||||||||||||||||||||||
Unrealized holding gains/(losses) on derivative financial instruments, net | (88) | 83 | 21 | |||||||||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income | (25) | (125) | 27 | |||||||||||||||||||||||||||||
Reclassification adjustments of certain tax effects from AOCI to Retained earnings(b)
|
— | — | 1 | |||||||||||||||||||||||||||||
(113) | (42) | 50 | ||||||||||||||||||||||||||||||
Unrealized holding gains/(losses) on available-for-sale securities, net | 45 | — | (23) | |||||||||||||||||||||||||||||
Reclassification adjustments for (gains)/losses included in net income | (24) | 5 | 16 | |||||||||||||||||||||||||||||
Reclassification adjustments for tax on unrealized gains from AOCI to Retained earnings(c)
|
— | — | (45) | |||||||||||||||||||||||||||||
22 | 5 | (53) | ||||||||||||||||||||||||||||||
Benefit plans: actuarial gains/(losses), net | (281) | (169) | (141) | |||||||||||||||||||||||||||||
Reclassification adjustments related to amortization | 62 | 55 | 55 | |||||||||||||||||||||||||||||
Reclassification adjustments related to settlements, net | 65 | 65 | 33 | |||||||||||||||||||||||||||||
Reclassification adjustments of certain tax effects from AOCI to Retained earnings(b)
|
— | — | 637 | |||||||||||||||||||||||||||||
Other | (8) | (10) | 29 | |||||||||||||||||||||||||||||
(161) | (58) | 612 | ||||||||||||||||||||||||||||||
Benefit plans: prior service (costs)/credits and other, net | 12 | (1) | 2 | |||||||||||||||||||||||||||||
Reclassification adjustments related to amortization of prior service costs and other, net | (31) | (43) | (39) | |||||||||||||||||||||||||||||
Reclassification adjustments related to curtailments of prior service costs and other, net | — | (1) | (4) | |||||||||||||||||||||||||||||
Reclassification adjustments of certain tax effects from AOCI to Retained earnings(b)
|
— | — | (144) | |||||||||||||||||||||||||||||
Other | 1 | — | — | |||||||||||||||||||||||||||||
(17) | (45) | (185) | ||||||||||||||||||||||||||||||
Tax provision/(benefit) on other comprehensive income/(loss) | $ | (349) | $ | 115 | $ | 518 |
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, January 1, 2018 | $ | (5,180) | $ | (30) | $ | 401 | $ | (5,262) | $ | 750 | $ | (9,321) | ||||||||||||||||||||||||||
Other comprehensive income/(loss) due to the adoption of new accounting standards(a)
|
(2) | (1) | (416) | (637) | 144 | (913) | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss)(b)
|
(893) | 198 | (53) | (128) | (166) | (1,041) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | (6,075) | 167 | (68) | (6,027) | 728 | (11,275) | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss)(b)
|
123 | (146) | 33 | (231) | (144) | (365) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | (5,952) | 20 | (35) | (6,257) | 584 | (11,640) | ||||||||||||||||||||||||||||||||
Other comprehensive income/(loss)(b)
|
1,028 | (448) | 151 | (602) | (106) | 23 | ||||||||||||||||||||||||||||||||
Distribution of Upjohn Business(c)
|
(397) | — | — | 352 | (26) | (71) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | (5,321) | $ | (428) | $ | 116 | $ | (6,507) | $ | 452 | $ | (11,688) |
Pfizer Inc. | 2020 Form 10-K |
77
|
As of December 31, 2020 | As of 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 | $ | 567 | $ | — | $ | 567 | $ | 705 | $ | — | $ | 705 | ||||||||||||||||||||||||||||||||
Classified as available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—non-U.S. | 7,719 | — | 7,719 | 4,863 | — | 4,863 | ||||||||||||||||||||||||||||||||||||||
Government and agency—U.S. | 982 | — | 982 | 811 | — | 811 | ||||||||||||||||||||||||||||||||||||||
Corporate and other | 1,008 | — | 1,008 | 1,013 | — | 1,013 | ||||||||||||||||||||||||||||||||||||||
9,709 | — | 9,709 | 6,687 | — | 6,687 | |||||||||||||||||||||||||||||||||||||||
Total short-term investments | 10,276 | — | 10,276 | 7,392 | — | 7,392 | ||||||||||||||||||||||||||||||||||||||
Other current assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 18 | — | 18 | 53 | — | 53 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 234 | — | 234 | 413 | — | 413 | ||||||||||||||||||||||||||||||||||||||
Total other current assets | 251 | — | 251 | 465 | — | 465 | ||||||||||||||||||||||||||||||||||||||
Long-term investments | ||||||||||||||||||||||||||||||||||||||||||||
Classified as equity securities with readily determinable fair values(a)
|
2,809 | 2,776 | 32 | 1,902 | 1,863 | 39 | ||||||||||||||||||||||||||||||||||||||
Classified as available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
Government and agency—non-U.S. | 6 | — | 6 | — | — | — | ||||||||||||||||||||||||||||||||||||||
Government and agency—U.S. | 121 | — | 121 | 303 | — | 303 | ||||||||||||||||||||||||||||||||||||||
Corporate and other | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||||||||||||||||
128 | — | 128 | 315 | — | 315 | |||||||||||||||||||||||||||||||||||||||
Total long-term investments | 2,936 | 2,776 | 160 | 2,216 | 1,863 | 354 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent assets | ||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | 117 | — | 117 | 266 | — | 266 | ||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 5 | — | 5 | 261 | — | 261 | ||||||||||||||||||||||||||||||||||||||
Total derivative assets | 122 | — | 122 | 526 | — | 526 | ||||||||||||||||||||||||||||||||||||||
Insurance contracts(b)
|
693 | — | 693 | 575 | — | 575 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent assets | 814 | — | 814 | 1,102 | — | 1,102 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 14,278 | $ | 2,776 | $ | 11,501 | $ | 11,176 | $ | 1,863 | $ | 9,313 | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 501 | $ | — | $ | 501 | $ | 114 | $ | — | $ | 114 | ||||||||||||||||||||||||||||||||
Total other current liabilities | 501 | — | 501 | 114 | — | 114 | ||||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | 599 | — | 599 | 604 | — | 604 | ||||||||||||||||||||||||||||||||||||||
Total other noncurrent liabilities | 599 | — | 599 | 604 | — | 604 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 1,100 | $ | — | $ | 1,100 | $ | 718 | $ | — | $ | 718 |
Pfizer Inc. | 2020 Form 10-K |
78
|
Carrying values and estimated fair values using a market approach:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of 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 | $ | 37,133 | $ | 45,533 | $ | 45,533 | $ | 35,955 | $ | 40,842 | $ | 40,842 |
The following summarizes our investments by classification type: | ||||||||||||||
As of December 31, | ||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||
Short-term investments | ||||||||||||||
Equity securities with readily determinable fair values(a)
|
$ | 567 | $ | 705 | ||||||||||
Available-for-sale debt securities | 9,709 | 6,687 | ||||||||||||
Held-to-maturity debt securities | 161 | 1,133 | ||||||||||||
Total Short-term investments | $ | 10,437 | $ | 8,525 | ||||||||||
Long-term investments | ||||||||||||||
Equity securities with readily determinable fair values | $ | 2,809 | $ | 1,902 | ||||||||||
Available-for-sale debt securities | 128 | 315 | ||||||||||||
Held-to-maturity debt securities | 37 | 42 | ||||||||||||
Private equity securities at cost(b)
|
432 | 756 | ||||||||||||
Total Long-term investments
|
$ | 3,406 | $ | 3,014 | ||||||||||
Equity-method investments | 16,856 | 17,133 | ||||||||||||
Total long-term investments and equity-method investments
|
$ | 20,262 | $ | 20,147 | ||||||||||
Held-to-maturity cash equivalents | $ | 89 | $ | 163 |
At December 31, 2020, our investment securities portfolio consisted of diverse, primarily investment-grade, debt securities. The contractual maturities, or estimated maturities, of the debt securities are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of 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 | Amortized Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––non-U.S.
|
$ | 7,593 | $ | 136 | $ | (4) | $ | 7,725 | $ | 7,719 | $ | 6 | $ | — | $ | 4,895 | $ | 6 | $ | (38) | $ | 4,863 | ||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––U.S.
|
1,104 | — | (1) | 1,103 | 982 | 121 | — | 1,120 | — | (6) | 1,114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and other(a)
|
1,006 | 2 | — | 1,008 | 1,008 | — | — | 1,027 | — | (2) | 1,025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity debt securities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits and other
|
283 | — | — | 283 | 251 | 9 | 24 | 535 | — | — | 535 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency––non-U.S.
|
5 | — | — | 5 | — | — | 5 | 803 | — | — | 803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities | $ | 9,991 | $ | 138 | $ | (5) | $ | 10,124 | $ | 9,959 | $ | 136 | $ | 29 | $ | 8,380 | $ | 6 | $ | (47) | $ | 8,340 |
Pfizer Inc. | 2020 Form 10-K |
79
|
The following presents the calculation of the portion of unrealized (gains)/losses that relate to equity securities, excluding equity method investments, held at the reporting date: | ||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||
Net (gains)/losses recognized during the period on equity securities(a)
|
$ | (540) | $ | (454) | $ | (586) | ||||||||||||||
Less: Net (gains)/losses recognized during the period on equity securities sold during the period | (24) | (25) | (109) | |||||||||||||||||
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date(b)
|
$ | (515) | $ | (429) | $ | (477) |
Short-term borrowings include: | ||||||||||||||
As of December 31, | ||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||
Commercial paper(a)
|
$ | 556 | $ | 13,915 | ||||||||||
Current portion of long-term debt, principal amount(b)
|
2,004 | 1,458 | ||||||||||||
Other short-term borrowings, principal amount(c)
|
145 | 860 | ||||||||||||
Total short-term borrowings, principal amount
|
2,705 | 16,233 | ||||||||||||
Net fair value adjustments related to hedging and purchase accounting | — | 5 | ||||||||||||
Net unamortized discounts, premiums and debt issuance costs | (2) | (43) | ||||||||||||
Total Short-term borrowings, including current portion of long-term debt, carried at historical proceeds, as adjusted
|
$ | 2,703 | $ | 16,195 |
Pfizer Inc. | 2020 Form 10-K |
80
|
In 2020, we issued the following: | ||||||||||||||
(MILLIONS OF DOLLARS) | Principal | |||||||||||||
Interest Rate | Maturity Date |
As of
December 31, 2020 |
||||||||||||
0.800%(a)
|
May 28, 2025 | $ | 750 | |||||||||||
1.700%(a)
|
May 28, 2030 | 1,000 | ||||||||||||
2.550%(a)
|
May 28, 2040 | 1,000 | ||||||||||||
2.700%(a)
|
May 28, 2050 | 1,250 | ||||||||||||
$ | 4,000 | |||||||||||||
2.625%(b)
|
April 1, 2030 | $ | 1,250 |
Pfizer Inc. | 2020 Form 10-K |
81
|
Pfizer Inc. | 2020 Form 10-K |
82
|
Pfizer Inc. | 2020 Form 10-K |
83
|
The following summarizes the components of Property, plant and equipment:
|
||||||||||||||||||||
Useful Lives | As of December 31, | |||||||||||||||||||
(MILLIONS OF DOLLARS) | (Years) | 2020 | 2019 | |||||||||||||||||
Land | - | $ | 444 | $ | 495 | |||||||||||||||
Buildings |
33-50
|
9,022 | 9,181 | |||||||||||||||||
Machinery and equipment |
8-20
|
11,153 | 10,648 | |||||||||||||||||
Furniture, fixtures and other |
3-12.5
|
4,541 | 4,840 | |||||||||||||||||
Construction in progress | - | 3,552 | 2,794 | |||||||||||||||||
28,711 | 27,959 | |||||||||||||||||||
Less: Accumulated depreciation | 14,812 | 14,990 | ||||||||||||||||||
Property, plant and equipment | $ | 13,900 | $ | 12,969 |
The following provides long-lived assets by geographic area: | ||||||||||||||
As of December 31, | ||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||
Property, plant and equipment | ||||||||||||||
United States | $ | 7,821 | $ | 7,194 | ||||||||||
Developed Europe | 4,775 | 4,238 | ||||||||||||
Developed Rest of World | 413 | 453 | ||||||||||||
Emerging Markets | 890 | 1,083 | ||||||||||||
Property, plant and equipment | $ | 13,900 | $ | 12,969 |
The following summarizes the components of Identifiable intangible assets:
|
||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of 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)
|
$ | 73,545 | $ | (50,902) | $ | 22,643 | $ | 72,449 | $ | (47,092) | $ | 25,357 | ||||||||||||||||||||||||||
Brands | 922 | (774) | 148 | 922 | (741) | 181 | ||||||||||||||||||||||||||||||||
Licensing agreements and other(b)
|
2,292 | (1,186) | 1,106 | 1,687 | (1,108) | 579 | ||||||||||||||||||||||||||||||||
76,759 | (52,862) | 23,896 | 75,058 | (48,941) | 26,117 | |||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Brands | 827 | 827 | 827 | 827 | ||||||||||||||||||||||||||||||||||
IPR&D(c)
|
3,175 | 3,175 | 5,919 | 5,919 | ||||||||||||||||||||||||||||||||||
Licensing agreements and other(b)
|
573 | 573 | 1,073 | 1,073 | ||||||||||||||||||||||||||||||||||
4,575 | 4,575 | 7,819 | 7,819 | |||||||||||||||||||||||||||||||||||
Identifiable intangible assets(d)
|
$ | 81,334 | $ | (52,862) | $ | 28,471 | $ | 82,877 | $ | (48,941) | $ | 33,936 |
Pfizer Inc. | 2020 Form 10-K |
84
|
The following provides the expected annual amortization expense: | ||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||||||||||||||||
Amortization expense | $ | 3,372 | $ | 3,249 | $ | 2,921 | $ | 2,642 | $ | 2,492 |
Pfizer Inc. | 2020 Form 10-K |
85
|
The following summarizes the components and changes in the carrying amount of Goodwill:
|
||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | Total | |||||||||||||||||||||||||||||||
Balance, January 1, 2019
|
$ | 42,927 | ||||||||||||||||||||||||||||||
Additions(a)
|
5,411 | |||||||||||||||||||||||||||||||
Other(b)
|
(136) | |||||||||||||||||||||||||||||||
Balance, December 31, 2019
|
48,202 | |||||||||||||||||||||||||||||||
Additions(c)
|
727 | |||||||||||||||||||||||||||||||
Other(b)
|
648 | |||||||||||||||||||||||||||||||
Balance, December 31, 2020
|
$ | 49,577 |
The following provides the annual (credit)/cost (including costs reported as part of discontinued operations) and changes in Other comprehensive income/(loss) for our benefit plans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
Qualified |
U.S.
Supplemental (Non-Qualified) |
International |
Postretirement
Plans |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 146 | $ | 125 | $ | 136 | $ | 38 | $ | 37 | $ | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 499 | 629 | 598 | 34 | 47 | 55 | 164 | 215 | 212 | 49 | 75 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets
|
(1,015) | (890) | (1,040) | — | — | — | (306) | (317) | (360) | (36) | (33) | (37) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial losses | 136 | 147 | 120 | 15 | 11 | 13 | 125 | 80 | 101 | — | 3 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost/(credit)
|
(3) | (3) | 2 | (1) | (1) | (1) | (3) | (4) | (4) | (170) | (173) | (178) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailments
|
— | — | 12 | — | — | 1 | — | (1) | (4) | — | (47) | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements
|
223 | 230 | 113 | 49 | 27 | 26 | 6 | 16 | 4 | — | (10) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits
|
(1) | 4 | 6 | 2 | 17 | 10 | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(credit) reported in income | (161) | 116 | (189) | 99 | 100 | 103 | 132 | 115 | 84 | (118) | (146) | (111) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Credit)/cost reported in Other comprehensive income/(loss)
|
640 | (246) | 361 | 95 | 115 | (189) | 202 | 570 | 84 | (50) | 38 | 105 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Credit)/cost recognized in Comprehensive income
|
$ | 479 | $ | (129) | $ | 171 | $ | 194 | $ | 215 | $ | (86) | $ | 333 | $ | 685 | $ | 168 | $ | (168) | $ | (107) | $ | (6) |
Pfizer Inc. | 2020 Form 10-K |
86
|
The following provides the weighted-average actuarial assumptions of our benefit plans: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(PERCENTAGES) | 2020 | 2019 | 2018 | |||||||||||||||||
Weighted-average assumptions used to determine benefit obligations | ||||||||||||||||||||
Discount rate: | ||||||||||||||||||||
U.S. qualified pension plans | 2.6 % | 3.3 | % | 4.4 | % | |||||||||||||||
U.S. non-qualified pension plans | 2.4 % | 3.2 | % | 4.3 | % | |||||||||||||||
International pension plans | 1.5 % | 1.7 | % | 2.5 | % | |||||||||||||||
Postretirement plans | 2.5 % | 3.2 | % | 4.3 | % | |||||||||||||||
Rate of compensation increase(a):
|
||||||||||||||||||||
International pension plans | 2.9 % | 1.4 | % | 1.4 | % | |||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||||||||||||||||
Discount rate: | ||||||||||||||||||||
U.S. qualified pension plans | 3.3 % | 4.4 | % | 3.8 | % | |||||||||||||||
U.S. non-qualified pension plans | 3.2 % | 4.3 | % | 3.7 | % | |||||||||||||||
International pension plans interest cost | 1.5 % | 2.2 | % | 2.0 | % | |||||||||||||||
International pension plans service cost | 1.6 % | 2.4 | % | 2.3 | % | |||||||||||||||
Postretirement plans | 3.2 % | 4.3 | % | 3.7 | % | |||||||||||||||
Expected return on plan assets: | ||||||||||||||||||||
U.S. qualified pension plans | 7.0 % | 7.2 | % | 7.5 | % | |||||||||||||||
International pension plans | 3.6 % | 3.9 | % | 4.4 | % | |||||||||||||||
Postretirement plans | 7.0 % | 7.3 | % | 7.5 | % | |||||||||||||||
Rate of compensation increase: | ||||||||||||||||||||
U.S. qualified pension plans(a)
|
— | — | 2.8 | % | ||||||||||||||||
U.S. non-qualified pension plans(a)
|
— | — | 2.8 | % | ||||||||||||||||
International pension plans | 2.9 % | 1.4 | % | 2.5 | % |
The following provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans: | ||||||||||||||
As of December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Healthcare cost trend rate assumed for next year (up to age 65) | 5.4 % | 5.6 | % | |||||||||||
Healthcare cost trend rate assumed for next year (age 65 and older) | 5.6 % | 6.0 | % | |||||||||||
Rate to which the cost trend rate is assumed to decline | 4.5 % | 4.5 | % | |||||||||||
Year that the rate reaches the ultimate trend rate | 2037 | 2037 |
Pfizer Inc. | 2020 Form 10-K |
87
|
The following provides an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans (including those reported as part of discontinued operations):
|
||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Qualified |
U.S. Supplemental
(Non-Qualified) |
International |
Postretirement
Plans |
|||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation(a)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning | $ | 16,535 | $ | 15,141 | $ | 1,351 | $ | 1,280 | $ | 11,059 | $ | 9,952 | $ | 1,667 | $ | 1,870 | ||||||||||||||||||||||||||||||||||
Service cost | — | — | — | — | 146 | 125 | 38 | 37 | ||||||||||||||||||||||||||||||||||||||||||
Interest cost | 499 | 629 | 34 | 47 | 164 | 215 | 49 | 75 | ||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | — | — | 8 | 7 | 88 | 84 | ||||||||||||||||||||||||||||||||||||||||||
Plan amendments | 2 | — | — | — | 2 | 18 | (56) | (56) | ||||||||||||||||||||||||||||||||||||||||||
Changes in actuarial assumptions and other(b)
|
1,953 | 2,001 | 159 | 152 | 702 | 1,224 | (132) | (87) | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange impact | — | — | — | — | 646 | (33) | 2 | (1) | ||||||||||||||||||||||||||||||||||||||||||
Upjohn spin-off(c)
|
(1,016) | — | — | — | (320) | — | (218) | — | ||||||||||||||||||||||||||||||||||||||||||
Acquisitions/divestitures/other, net | — | (4) | — | (1) | — | (55) | — | (36) | ||||||||||||||||||||||||||||||||||||||||||
Curtailments | — | — | — | — | — | (2) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Settlements | (650) | (692) | (117) | (70) | (34) | (34) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | (1) | 4 | 2 | 17 | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (383) | (544) | (62) | (74) | (372) | (360) | (201) | (221) | ||||||||||||||||||||||||||||||||||||||||||
Benefit obligation, ending(a)
|
16,940 | 16,535 | 1,366 | 1,351 | 12,001 | 11,059 | 1,238 | 1,667 | ||||||||||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning
|
14,586 | 13,051 | — | — | 8,956 | 8,215 | 519 | 469 | ||||||||||||||||||||||||||||||||||||||||||
Actual gain/(loss) on plan assets | 1,974 | 2,760 | — | — | 868 | 873 | 69 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Company contributions | 1,253 | 11 | 179 | 144 | 197 | 230 | 113 | 137 | ||||||||||||||||||||||||||||||||||||||||||
Employee contributions | — | — | — | — | 8 | 7 | 88 | 84 | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange impact | — | — | — | — | 462 | 42 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Upjohn spin-off(c)
|
(687) | — | — | — | (270) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Acquisitions/divestitures, net | — | — | — | — | (6) | (16) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Settlements | (650) | (692) | (117) | (70) | (34) | (34) | — | — | ||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (383) | (544) | (62) | (74) | (372) | (360) | (201) | (221) | ||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, ending | 16,094 | 14,586 | — | — | 9,811 | 8,956 | 588 | 519 | ||||||||||||||||||||||||||||||||||||||||||
Funded status—Plan assets less than benefit obligation
|
$ | (845) | $ | (1,949) | $ | (1,366) | $ | (1,351) | $ | (2,191) | $ | (2,103) | $ | (651) | $ | (1,148) |
Pfizer Inc. | 2020 Form 10-K |
88
|
The following provides the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Qualified |
U.S. Supplemental
(Non-Qualified) |
International |
Postretirement
Plans |
|||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
Actuarial losses(a)
|
$ | (5,062) | $ | (4,812) | $ | (579) | $ | (484) | $ | (3,056) | $ | (2,921) | $ | 58 | $ | (76) | ||||||||||||||||||||||||||||||||||
Prior service (costs)/credits | (3) | (2) | (1) | — | (31) | (21) | 688 | 830 | ||||||||||||||||||||||||||||||||||||||||||
Total(b)
|
$ | (5,065) | $ | (4,814) | $ | (580) | $ | (485) | $ | (3,087) | $ | (2,942) | $ | 746 | $ | 754 |
Pfizer Inc. | 2020 Form 10-K |
89
|
The following provides the components of plan assets (including those reported as part of discontinued operations):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | As of December 31, 2020 | Level 1 | Level 2 | Level 3 |
Assets Measured at NAV(a)
|
As of December 31, 2019 | Level 1 | Level 2 | Level 3 |
Assets Measured at NAV(a)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. qualified pension plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 781 | $ | 70 | $ | 711 | $ | — | $ | — | $ | 363 | $ | 80 | $ | 284 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global equity securities | 3,241 | 3,213 | 27 | 1 | — | 3,464 | 3,406 | 57 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity commingled funds | 1,325 | — | 1,110 | — | 215 | 1,179 | — | 819 | — | 360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 6,499 | 23 | 6,476 | — | — | 5,292 | 10 | 5,281 | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations(b)
|
1,555 | — | 1,555 | — | — | 1,799 | — | 1,799 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income commingled funds | 23 | — | 23 | — | — | 6 | — | 6 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership investments(c)
|
1,431 | — | — | — | 1,431 | 1,212 | — | — | — | 1,212 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 190 | — | 190 | — | — | 196 | — | 196 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commingled funds(d)
|
1,049 | — | 11 | — | 1,038 | 1,075 | — | 9 | — | 1,066 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,094 | $ | 3,306 | $ | 10,103 | $ | 1 | $ | 2,684 | $ | 14,586 | $ | 3,496 | $ | 8,451 | $ | 1 | $ | 2,638 | ||||||||||||||||||||||||||||||||||||||||||
International pension plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 407 | $ | 61 | $ | 346 | $ | — | $ | — | $ | 221 | $ | 33 | $ | 187 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity commingled funds | 2,051 | — | 1,681 | — | 370 | 1,922 | — | 1,548 | — | 374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 925 | — | 925 | — | — | 796 | — | 796 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations(b)
|
1,334 | — | 1,334 | — | — | 1,200 | — | 1,200 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income commingled funds | 2,484 | — | 1,217 | — | 1,267 | 2,201 | — | 1,031 | — | 1,171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership investments(c)
|
69 | — | 3 | — | 66 | 66 | — | 3 | — | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | 1,027 | — | 57 | 969 | 1 | 1,027 | — | 82 | 944 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other(d)
|
1,514 | — | 117 | 393 | 1,003 | 1,524 | — | 82 | 398 | 1,043 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,811 | $ | 61 | $ | 5,681 | $ | 1,362 | $ | 2,707 | $ | 8,956 | $ | 33 | $ | 4,929 | $ | 1,342 | $ | 2,652 | ||||||||||||||||||||||||||||||||||||||||||
U.S. postretirement plans(e)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts | $ | 588 | $ | — | $ | 588 | $ | — | $ | — | $ | 519 | $ | — | $ | 519 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Pfizer Inc. | 2020 Form 10-K |
90
|
Pfizer Inc. | 2020 Form 10-K |
91
|
The following provides the expected future cash flow information related to our benefit plans: | ||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | U.S. Qualified |
U.S. Supplemental
(Non-Qualified) |
International | Postretirement Plans | ||||||||||||||||||||||
Expected employer contributions: | ||||||||||||||||||||||||||
2021
|
$ | — | $ | 127 | $ | 282 | $ | 90 | ||||||||||||||||||
Expected benefit payments: | ||||||||||||||||||||||||||
2021 | $ | 1,139 | $ | 127 | $ | 371 | $ | 97 | ||||||||||||||||||
2022 | 1,036 | 121 | 375 | 94 | ||||||||||||||||||||||
2023 | 1,032 | 116 | 375 | 92 | ||||||||||||||||||||||
2024 | 1,030 | 106 | 385 | 89 | ||||||||||||||||||||||
2025 | 986 | 100 | 393 | 86 | ||||||||||||||||||||||
2026–2030 | 4,625 | 424 | 2,086 | 430 |
Pfizer Inc. | 2020 Form 10-K |
92
|
The following provides the number of shares of our common stock purchased and the cost of purchases under our publicly announced share purchase plans, including our ASRs: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(SHARES IN MILLIONS, DOLLARS IN BILLIONS) | 2020 |
2019(a)
|
2018(b)
|
|||||||||||||||||
Shares of common stock purchased | — | 213 | 307 | |||||||||||||||||
Cost of purchase | $ | — | $ | 8.9 | $ | 12.2 |
Pfizer Inc. | 2020 Form 10-K |
93
|
Awarded to | Terms | Valuation | Recognition and Presentation | ||||||||
Portfolio Performance Shares (PPSs) | |||||||||||
Select employees |
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents paid on such shares.
•For PPSs granted during the period presented, the awards vest after three years of continuous service from the grant date and the number of shares paid, if any, depends on the achievement of predetermined goals related to Pfizer’s long-term product portfolio during a five-year performance period from the year of the grant date.
•The number of shares that may be earned ranges from 0% to 200% of the initial award depending on goal achievement over the performance period.
|
As of the grant date using the intrinsic value method using the closing price of our common stock |
Amortized on a straight-line basis over the probable vesting term into Cost of sales, Selling, informational and administrative expenses and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, changes in the number of shares that are probable of being earned and changes in management’s assessment of the probability that the specified performance criteria will be achieved and/or changes in management’s
assessment of the probable vesting term.
|
||||||||
Performance Share Awards (PSAs) | |||||||||||
Senior and other key management |
•Entitle the holder to receive, at the end of the performance period, shares of our common stock, if any, including shares resulting from dividend equivalents, dependent upon the achievement of predetermined goals related to two measures:
a.Adjusted operating income (for performance years through 2018) or adjusted net income (for 2019 and later years, except for the 2017 PSAs) over three one-year periods; and
b.TSR as compared to the NYSE ARCA Pharmaceutical Index (DRG Index) over the three-year performance period.
•PSAs vest after three years of continuous service from the grant date.
•The number of shares that may be earned ranges from 0% to 200% of the initial award depending on goal achievement over the performance period.
|
As of the grant date using the intrinsic value method using the closing price of our common stock |
Amortized on a straight-line basis over the probable vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate, and adjusted each reporting period, as necessary, to reflect changes in the price of our common stock, changes in the number of shares that are probable of being earned and changes in management’s assessment of the probability that the specified performance criteria will be achieved.
|
||||||||
Stock Options | |||||||||||
Select employees |
•Entitle the holder to purchase a specified number of our common stock at a price per share equal to the closing market price of our common stock on the date of grant, when vested.
•Beginning in 2016, only a limited set of non-U.S. employees received stock option grants. No stock options were awarded to senior and other key management in any period presented.
•Stock options vest after three years of continuous service from the grant date and have a contractual term of 10 years.
|
As of the grant date using the Black-Scholes-Merton option-pricing model |
Amortized on a straight-line basis over the vesting term into Cost of sales, Selling, informational and administrative expenses, and/or Research and development expenses, as appropriate.
|
Pfizer Inc. | 2020 Form 10-K |
94
|
Pfizer Inc. | 2020 Form 10-K |
95
|
Summary of all stock option activity during 2020:
|
||||||||||||||||||||||||||
Shares
(Thousands)
|
Weighted-Average
Exercise Price Per Share |
Weighted-Average
Remaining Contractual Term
(Years)
|
Aggregate
Intrinsic Value(a)
(Millions)
|
|||||||||||||||||||||||
Outstanding, December 31, 2019(b)
|
88,600 | $ | 28.39 | |||||||||||||||||||||||
Granted(b)
|
1,755 | 34.10 | ||||||||||||||||||||||||
Exercised(b)
|
(18,492) | 23.05 | ||||||||||||||||||||||||
Forfeited(b)
|
(160) | 35.49 | ||||||||||||||||||||||||
Expired(b)
|
(326) | 24.91 | ||||||||||||||||||||||||
Upjohn spin-off adjustment(c)
|
4,024 | 28.08 | ||||||||||||||||||||||||
Outstanding, December 31, 2020 | 75,402 | 28.31 | 3.1 | $ | 645 | |||||||||||||||||||||
Vested and expected to vest, December 31, 2020(d)
|
75,226 | 28.30 | 3.0 | 645 | ||||||||||||||||||||||
Exercisable, December 31, 2020 | 71,732 | $ | 27.97 | 2.8 | $ | 635 |
The following presents the detailed calculation of EPS:
|
||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
(IN MILLIONS) | 2020 | 2019 | 2018 | |||||||||||||||||
EPS Numerator––Basic | ||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc.
|
$ | 6,985 | $ | 10,838 | $ | 3,825 | ||||||||||||||
Less: Preferred stock dividends––net of tax | — | 1 | 1 | |||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders
|
6,984 | 10,837 | 3,824 | |||||||||||||||||
Income from discontinued operations––net of tax | 2,631 | 5,435 | 7,328 | |||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders
|
$ | 9,616 | $ | 16,272 | $ | 11,152 | ||||||||||||||
EPS Numerator––Diluted | ||||||||||||||||||||
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions
|
$ | 6,985 | $ | 10,838 | $ | 3,825 | ||||||||||||||
Income from discontinued operations––net of tax, attributable to Pfizer Inc. common shareholders and assumed conversions | 2,631 | 5,435 | 7,328 | |||||||||||||||||
Net income attributable to Pfizer Inc. common shareholders and assumed conversions
|
$ | 9,616 | $ | 16,273 | $ | 11,153 | ||||||||||||||
EPS Denominator | ||||||||||||||||||||
Weighted-average number of common shares outstanding––Basic | 5,555 | 5,569 | 5,872 | |||||||||||||||||
Common-share equivalents: stock options, stock issuable under employee compensation plans convertible preferred stock and accelerated share repurchase agreements | 77 | 106 | 105 | |||||||||||||||||
Weighted-average number of common shares outstanding––Diluted
|
5,632 | 5,675 | 5,977 | |||||||||||||||||
Anti-dilutive common stock equivalents(a)
|
4 | 2 | 2 |
Pfizer Inc. | 2020 Form 10-K |
96
|
For operating leases, the ROU assets and liabilities in our consolidated balance sheets follows: | ||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
(MILLIONS OF DOLLARS) | Balance Sheet Classification | 2020 | 2019 | |||||||||||||||||
ROU assets | Other noncurrent assets | $ | 1,393 | $ | 1,289 | |||||||||||||||
Lease liabilities (short-term) | Other current liabilities | 321 | 269 | |||||||||||||||||
Lease liabilities (long-term) | Other noncurrent liabilities | 1,114 | 1,030 |
Components of total lease cost includes: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | ||||||||||||
Operating lease cost | $ | 433 | $ | 422 | ||||||||||
Variable lease cost | 380 | 327 | ||||||||||||
Sublease income | (40) | (45) | ||||||||||||
Total lease cost | $ | 773 | $ | 704 |
Other supplemental information for 2019 follows:
|
||||||||||||||||||||
Weighted-Average Remaining Contractual Lease Term (Years) | Weighted-Average Discount Rate | |||||||||||||||||||
(MILLIONS OF DOLLARS) |
As of December 31, 2019
|
Year Ended
December 31,
2019
|
||||||||||||||||||
Operating leases | 6.9 | 3.5 | % | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 339 | ||||||||||||||||||
(Gains)/losses on sale and leaseback transactions, net | (29) | |||||||||||||||||||
ROU assets obtained in exchange for new operating lease liabilities
|
318 |
Pfizer Inc. | 2020 Form 10-K |
97
|
Pfizer Inc. | 2020 Form 10-K |
98
|
Pfizer Inc. | 2020 Form 10-K |
99
|
Pfizer Inc. | 2020 Form 10-K |
100
|
Pfizer Inc. | 2020 Form 10-K |
101
|
Pfizer Inc. | 2020 Form 10-K |
102
|
Pfizer Inc. | 2020 Form 10-K |
103
|
Pfizer Inc. | 2020 Form 10-K |
104
|
The following summarizes revenues by geographic area: | ||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
(MILLIONS OF DOLLARS) | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
United States | $ | 21,712 | $ | 20,593 | $ | 20,119 | ||||||||||||||||||||||||||||||||
Developed Europe | 7,788 | 7,729 | 7,997 | |||||||||||||||||||||||||||||||||||
Developed Rest of World | 4,036 | 4,022 | 4,090 | |||||||||||||||||||||||||||||||||||
Emerging Markets | 8,372 | 8,828 | 8,618 | |||||||||||||||||||||||||||||||||||
Revenues
|
$ | 41,908 | $ | 41,172 | $ | 40,825 |
Pfizer Inc. | 2020 Form 10-K |
105
|
The following summarizes revenue, as a percentage of total revenues, for our three largest U.S. wholesaler customers: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
McKesson, Inc.
|
16 | % | 15 | % | 13 | % | ||||||||||||||
AmerisourceBergen Corporation
|
13 | % | 11 | % | 8 | % | ||||||||||||||
Cardinal Health, Inc. | 10 | % | 9 | % | 8 | % |
(MILLIONS OF DOLLARS) | Year Ended December 31, | |||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | 2020 | 2019 | 2018 | ||||||||||||||||||||||
TOTAL REVENUES(a)
|
$ | 41,908 | $ | 41,172 | $ | 40,825 | ||||||||||||||||||||
Internal Medicine(a)
|
$ | 9,003 | $ | 8,790 | $ | 8,548 | ||||||||||||||||||||
Eliquis alliance revenues and direct sales
|
Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism | 4,949 | 4,220 | 3,434 | ||||||||||||||||||||||
Chantix/Champix
|
An aid to smoking cessation treatment in adults 18 years of age or older
|
919 | 1,107 | 1,085 | ||||||||||||||||||||||
Premarin family
|
Symptoms of menopause | 680 | 734 | 832 | ||||||||||||||||||||||
BMP2
|
Development of bone and cartilage | 274 | 287 | 279 | ||||||||||||||||||||||
Toviaz
|
Overactive bladder | 252 | 250 | 271 | ||||||||||||||||||||||
All other Internal Medicine
|
Various | 1,930 | 2,192 | 2,648 | ||||||||||||||||||||||
Oncology | $ | 10,867 | $ | 9,014 | $ | 7,471 | ||||||||||||||||||||
Ibrance | Metastatic breast cancer | 5,392 | 4,961 | 4,118 | ||||||||||||||||||||||
Xtandi alliance revenues | mCRPC, nmCRPC, mCSPC | 1,024 | 838 | 699 | ||||||||||||||||||||||
Sutent
|
Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor
|
819 | 936 | 1,049 | ||||||||||||||||||||||
Inlyta
|
Advanced RCC | 787 | 477 | 298 | ||||||||||||||||||||||
Xalkori
|
ALK-positive and ROS1-positive advanced NSCLC | 544 | 530 | 524 | ||||||||||||||||||||||
Bosulif
|
Philadelphia chromosome–positive chronic myelogenous leukemia | 450 | 365 | 296 | ||||||||||||||||||||||
Retacrit(b)
|
Anemia | 386 | 225 | 82 | ||||||||||||||||||||||
Lorbrena |
ALK-positive metastatic NSCLC
|
204 | 115 | 11 | ||||||||||||||||||||||
Ruxience(b)
|
Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis | 170 | (1) | — | ||||||||||||||||||||||
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 mCRC after prior therapy
|
160 | 48 | — | ||||||||||||||||||||||
Zirabev(b)
|
Treatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer | 143 | 1 | — | ||||||||||||||||||||||
Mektovi
|
In combination with Braftovi for metastatic melanoma for patients who test positive for a BRAF genetic mutation | 142 | 49 | — | ||||||||||||||||||||||
All other Oncology
|
Various | 645 | 470 | 395 | ||||||||||||||||||||||
Hospital(a), (c)
|
$ | 7,961 | $ | 7,772 | $ | 7,955 | ||||||||||||||||||||
Sulperazon
|
Bacterial infections | 618 | 684 | 613 | ||||||||||||||||||||||
Medrol | Anti-inflammatory glucocorticoid | 402 | 469 | 493 | ||||||||||||||||||||||
EpiPen(a)
|
Epinephrine injection used in treatment of life-threatening allergic reactions | 297 | 303 | 303 | ||||||||||||||||||||||
Zithromax | Bacterial infections | 276 | 336 | 326 | ||||||||||||||||||||||
Vfend
|
Fungal infections | 270 | 346 | 392 | ||||||||||||||||||||||
Panzyga | Primary humoral immunodeficiency | 269 | 183 | 39 | ||||||||||||||||||||||
Precedex | Sedation agent in surgery or intensive care | 260 | 155 | 213 | ||||||||||||||||||||||
Fragmin
|
Treatment/prevention of venous thromboembolism | 252 | 253 | 293 | ||||||||||||||||||||||
Zyvox
|
Bacterial infections | 222 | 251 | 236 | ||||||||||||||||||||||
Zavicefta | Bacterial infections | 212 | 108 | 46 | ||||||||||||||||||||||
Pfizer CentreOne(d)
|
Various | 926 | 810 | 755 | ||||||||||||||||||||||
All other Anti-infectives
|
Various | 1,455 | 1,592 | 1,661 |
Pfizer Inc. | 2020 Form 10-K |
106
|
(MILLIONS OF DOLLARS) | Year Ended December 31, | |||||||||||||||||||||||||
PRODUCT | PRIMARY INDICATION OR CLASS | 2020 | 2019 | 2018 | ||||||||||||||||||||||
All other Hospital(c)
|
Various | 2,502 | 2,281 | 2,584 | ||||||||||||||||||||||
Vaccines
|
$ | 6,575 | $ | 6,504 | $ | 6,332 | ||||||||||||||||||||
Prevnar 13/Prevenar 13
|
Pneumococcal disease | 5,850 | 5,847 | 5,802 | ||||||||||||||||||||||
Nimenrix
|
Meningococcal disease | 221 | 230 | 140 | ||||||||||||||||||||||
FSME/IMMUN-TicoVac
|
Tick-borne encephalitis disease
|
196 | 220 | 184 | ||||||||||||||||||||||
BNT162b2
|
Active immunization to prevent COVID-19 in individuals 16 years of age and older
|
154 | — | — | ||||||||||||||||||||||
All other Vaccines
|
Various | 154 | 207 | 206 | ||||||||||||||||||||||
Inflammation & Immunology (I&I) | $ | 4,567 | $ | 4,733 | $ | 4,720 | ||||||||||||||||||||
Xeljanz
|
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis | 2,437 | 2,242 | 1,774 | ||||||||||||||||||||||
Enbrel (Outside the U.S. and Canada)
|
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
|
1,350 | 1,699 | 2,112 | ||||||||||||||||||||||
Inflectra/Remsima(b)
|
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
|
659 | 625 | 642 | ||||||||||||||||||||||
All other I&I
|
Various | 121 | 167 | 192 | ||||||||||||||||||||||
Rare Disease
|
$ | 2,936 | $ | 2,278 | $ | 2,211 | ||||||||||||||||||||
Vyndaqel/Vyndamax | ATTR-cardiomyopathy and polyneuropathy | 1,288 | 473 | 148 | ||||||||||||||||||||||
BeneFIX | Hemophilia B | 454 | 488 | 554 | ||||||||||||||||||||||
Genotropin
|
Replacement of human growth hormone | 427 | 498 | 558 | ||||||||||||||||||||||
Refacto AF/Xyntha
|
Hemophilia A | 370 | 426 | 514 | ||||||||||||||||||||||
Somavert
|
Acromegaly | 277 | 264 | 267 | ||||||||||||||||||||||
All other Rare Disease
|
Various | 120 | 129 | 170 | ||||||||||||||||||||||
Consumer Healthcare Business(e)
|
$ | — | $ | 2,082 | $ | 3,587 | ||||||||||||||||||||
Total Alliance revenues | $ | 5,418 | $ | 4,648 | $ | 3,838 | ||||||||||||||||||||
Total Biosimilars(b)
|
$ | 1,527 | $ | 911 | $ | 769 | ||||||||||||||||||||
Total Sterile Injectable Pharmaceuticals(a). (f)
|
$ | 5,315 | $ | 5,013 | $ | 5,173 |
Pfizer Inc. | 2020 Form 10-K |
107
|
Quarter | ||||||||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT PER COMMON SHARE DATA) | First | Second | Third | Fourth | ||||||||||||||||||||||
2020(a)
|
||||||||||||||||||||||||||
Revenues | $ | 10,083 | $ | 9,864 | $ | 10,277 | $ | 11,684 | ||||||||||||||||||
Costs and expenses(b)
|
7,219 | 6,559 | 8,716 | 11,323 | ||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs | 54 | 360 | 2 | 184 | ||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction | (6) | — | — | — | ||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss)
|
2,817 | 2,944 | 1,559 | 178 | ||||||||||||||||||||||
Provision/(benefit) for taxes on income/(loss) | 355 | 396 | (104) | (170) | ||||||||||||||||||||||
Income/(loss) from continuing operations | 2,462 | 2,548 | 1,663 | 348 | ||||||||||||||||||||||
Income from discontinued operations––net of tax(c)
|
948 | 887 | 539 | 257 | ||||||||||||||||||||||
Net income/(loss) before allocation to noncontrolling interests | 3,410 | 3,434 | 2,202 | 605 | ||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 9 | 8 | 8 | 11 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders | $ | 3,401 | $ | 3,426 | $ | 2,194 | $ | 594 | ||||||||||||||||||
Earnings/(loss) per common share—basic: | ||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.44 | $ | 0.46 | $ | 0.30 | $ | 0.06 | ||||||||||||||||||
Income from discontinued operations––net of tax(c)
|
0.17 | 0.16 | 0.10 | 0.05 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders
|
$ | 0.61 | $ | 0.62 | $ | 0.39 | $ | 0.11 | ||||||||||||||||||
Earnings/(loss) per common share—diluted: | ||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.44 | $ | 0.45 | $ | 0.29 | $ | 0.06 | ||||||||||||||||||
Income from discontinued operations––net of tax(c)
|
0.17 | 0.16 | 0.10 | 0.05 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders
|
$ | 0.61 | $ | 0.61 | $ | 0.39 | $ | 0.10 |
Pfizer Inc. | 2020 Form 10-K |
108
|
Quarter | ||||||||||||||||||||||||||
(MILLIONS OF DOLLARS, EXCEPT PER COMMON SHARE DATA) | First | Second | Third | Fourth | ||||||||||||||||||||||
2019(a)
|
||||||||||||||||||||||||||
Revenues | $ | 9,957 | $ | 10,363 | $ | 10,402 | $ | 10,449 | ||||||||||||||||||
Costs and expenses(b)
|
7,839 | 8,257 | 8,695 | 12,380 | ||||||||||||||||||||||
Restructuring charges and certain acquisition-related costs(c), (d)
|
39 | (122) | 351 | 333 | ||||||||||||||||||||||
(Gain) on completion of Consumer Healthcare JV transaction(d)
|
— | — | (8,087) | 1 | ||||||||||||||||||||||
Income/(loss) from continuing operations before provision/(benefit) for taxes on income/(loss)
|
2,079 | 2,228 | 9,442 | (2,264) | ||||||||||||||||||||||
Provision/(benefit) for taxes on income/(loss)(e)
|
142 | (1,169) | 2,866 | (1,221) | ||||||||||||||||||||||
Income/(loss) from continuing operations | 1,937 | 3,397 | 6,576 | (1,043) | ||||||||||||||||||||||
Income from discontinued operations––net of tax(f)
|
1,952 | 1,659 | 1,107 | 716 | ||||||||||||||||||||||
Net income/(loss) before allocation to noncontrolling interests | 3,889 | 5,056 | 7,684 | (327) | ||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 6 | 10 | 4 | 10 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders | $ | 3,884 | $ | 5,046 | $ | 7,680 | $ | (337) | ||||||||||||||||||
Earnings/(loss) per common share—basic: | ||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.34 | $ | 0.61 | $ | 1.19 | $ | (0.19) | ||||||||||||||||||
Income from discontinued operations––net of tax(f)
|
0.35 | 0.30 | 0.20 | 0.13 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders
|
$ | 0.69 | $ | 0.91 | $ | 1.38 | $ | (0.06) | ||||||||||||||||||
Earnings/(loss) per common share—diluted: | ||||||||||||||||||||||||||
Income/(loss) from continuing operations attributable to Pfizer Inc. common shareholders
|
$ | 0.34 | $ | 0.60 | $ | 1.16 | $ | (0.19) | ||||||||||||||||||
Income from discontinued operations––net of tax(f)
|
0.34 | 0.29 | 0.20 | 0.13 | ||||||||||||||||||||||
Net income/(loss) attributable to Pfizer Inc. common shareholders
|
$ | 0.68 | $ | 0.89 | $ | 1.36 | $ | (0.06) |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
Pfizer Inc. | 2020 Form 10-K |
109
|
KPMG LLP | ||
New York, New York | ||
February 25, 2021 |
Pfizer Inc. | 2020 Form 10-K |
110
|
|
||||||||
Albert Bourla | ||||||||
Chairman and Chief Executive Officer |
|
|
|||||||
Frank D’Amelio | Jennifer B. Damico | |||||||
Principal Financial Officer | Principal Accounting Officer | |||||||
February 25, 2021 |
Pfizer Inc. | 2020 Form 10-K |
111
|
PART III |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
Pfizer Inc. | 2020 Form 10-K |
112
|
PART IV |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
Stock and Asset Purchase Agreement, dated December 19, 2018, by and among us, GlaxoSmithKline plc and GlaxoSmithKline Consumer Healthcare Holdings Limited is incorporated by reference from our 2018 Annual Report on Form 10-K. (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 Stock and Asset Purchase Agreement.) | ||||||||
Business Combination Agreement, dated as of July 29, 2019, by and among us, Upjohn Inc., Utah Acquisition Sub Inc., Mylan N.V., Mylan I B.V. and Mylan II B.V. is incorporated by reference from our Current Report on Form 8-K filed on July 29, 2019. (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 Business Combination Agreement.) | ||||||||
Amendment No. 1 to the Business Combination Agreement, dated as of May 29, 2020, by and among us, Upjohn Inc., Utah Acquisition Sub Inc., Mylan N.V., Mylan I B.V. and Mylan II B.V. is incorporated by reference from our Current Report on Form 8-K filed on June 1, 2020. (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 Amendment No. 1 to the Business Combination Agreement.) | ||||||||
Separation and Distribution Agreement, dated as of July 29, 2019, by and between us and Upjohn Inc. is incorporated by reference from our Current Report on Form 8-K filed on July 29, 2019. (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.) | ||||||||
Amendment No. 1 to the Separation and Distribution Agreement, dated as of February 18, 2020, by and between us and Upjohn Inc. is incorporated by reference from our 2019 Annual Report on Form 10-K. (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 Amendment No. 1 to the Separation and Distribution Agreement.) | ||||||||
Amendment No. 2 to the Separation and Distribution Agreement, dated as of May 29, 2020, by and between us and Upjohn Inc. is incorporated by reference from our Current Report on Form 8-K filed on June 1, 2020. (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 Amendment No. 2 to the Separation and Distribution Agreement.)
|
||||||||
Amendment No. 3 to the Separation and Distribution Agreement, dated as of September 18, 2020, by and between us and Upjohn Inc. is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended September 27, 2020. (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 Amendment No. 3 to the Separation and Distribution Agreement.)
|
||||||||
Amendment No. 4 to the Separation and Distribution Agreement, dated as of November 15, 2020, by and between us 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 Amendment No. 4 to the Separation and Distribution Agreement.)
|
||||||||
Our Restated Certificate of Incorporation dated December 14, 2020, is incorporated by reference from our Current Report on Form 8-K filed on December 14, 2020. | ||||||||
Our By-laws, as amended December 18, 2017, are incorporated by reference from our Current Report on Form 8-K filed on December 21, 2017. | ||||||||
Indenture, dated as of January 30, 2001, between us and The Chase Manhattan Bank, is incorporated by reference from our Current Report on Form 8-K filed on January 30, 2001. | ||||||||
First Supplemental Indenture, dated as of March 24, 2009, between us and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank)), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended June 28, 2009. |
Pfizer Inc. | 2020 Form 10-K |
113
|
Second Supplemental Indenture, dated as of June 2, 2009, between us and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank)), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K filed on June 3, 2009. | ||||||||
Third Supplemental Indenture, dated as of June 3, 2013, between us and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank)), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K filed on June 3, 2013. | ||||||||
Fourth Supplemental Indenture, dated as of May 15, 2014, between us and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank)), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on May 15, 2014. | ||||||||
Fifth Supplemental Indenture, dated as of October 5, 2015, between us and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank)), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on October 6, 2015. | ||||||||
Sixth Supplemental Indenture, dated as of June 3, 2016, between us and The Bank of New York Mellon (formerly The Bank of New York (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank (National Association)))), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on June 3, 2016. | ||||||||
Seventh Supplemental Indenture, dated as of November 21, 2016, between us and The Bank of New York Mellon (formerly The Bank of New York (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank (National Association)))), as trustee, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on November 21, 2016. | ||||||||
Eighth Supplemental Indenture, dated as of March 17, 2017, among us, The Bank of New York Mellon (formerly The Bank of New York (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank (successor to the Chase Manhattan Bank (National Association)))), as trustee, and The Bank of New York Mellon, London Branch, as paying agent, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on March 17, 2017. | ||||||||
Ninth Supplemental Indenture, dated as of March 6, 2017, among us, The Bank of New York Mellon (formerly The Bank of New York (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank (National Association)))), as trustee, and The Bank of New York Mellon, London Branch, as paying agent and calculation agent, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on March 6, 2017. | ||||||||
Tenth Supplemental Indenture, dated as of December 19, 2017, among us, The Bank of New York Mellon (formerly The Bank of New York (successor to JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank, formerly The Chase Manhattan Bank (National Association)))), as trustee, and The Bank of New York Mellon, London Branch, as paying agent, to Indenture dated as of January 30, 2001, is incorporated by reference from our Current Report on Form 8-K report filed on December 19, 2017. | ||||||||
Indenture, dated as of April 10, 1992, between Wyeth (formerly American Home Products Corporation) and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.), as trustee, is incorporated by reference from Wyeth’s Registration Statement on Form S-3, filed on January 18, 1995. | ||||||||
Supplemental Indenture, dated as of October 13, 1992, between Wyeth and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.), as trustee, is incorporated by reference from Wyeth’s Registration Statement on Form S-3, filed on January 18, 1995. | ||||||||
Fifth Supplemental Indenture, dated as of December 16, 2003, between Wyeth and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.), as trustee, is incorporated by reference from Wyeth’s 2003 Annual Report on Form 10-K. | ||||||||
Sixth Supplemental Indenture, dated as of November 14, 2005, between Wyeth and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.), as trustee, is incorporated by reference from Wyeth’s Current Report on Form 8-K filed on November 15, 2005. | ||||||||
Seventh Supplemental Indenture, dated as of March 27, 2007, between Wyeth and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A.), as trustee, is incorporated by reference from Wyeth’s Current Report on Form 8-K filed on March 28, 2007. | ||||||||
Eighth Supplemental Indenture, dated as of October 30, 2009, between Wyeth, us and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, formerly The Chase Manhattan Bank), as trustee, to Indenture dated as of April 10, 1992 (as amended on October 13, 1992), is incorporated by reference from our Current Report on Form 8-K filed on November 3, 2009. | ||||||||
Indenture, dated as of September 7, 2018, between us and The Bank of New York Mellon, as trustee, is incorporated by reference from our Current Report on Form 8-K filed on September 7, 2018. | ||||||||
First Supplemental Indenture, dated as of September 7, 2018, between us and The Bank of New York Mellon, as trustee, is incorporated by reference from our Current Report on Form 8-K filed on September 7, 2018. | ||||||||
Second Supplemental Indenture, dated as of March 11, 2019, between us and The Bank of New York Mellon, as trustee, is incorporated by reference from our Current Report on Form 8-K filed on March 11, 2019. | ||||||||
Third Supplemental Indenture, dated as of March 27, 2020, between us and The Bank of New York Mellon, as trustee, is incorporated by reference from our Current Report on Form 8-K filed on March 27, 2020.
|
||||||||
Fourth Supplemental Indenture, dated as of May 28, 2020, between us and The Bank of New York Mellon, as trustee, is incorporated by reference from our Current Report on Form 8-K filed on May 28, 2020.
|
||||||||
*4.23
|
Description of Pfizer’s Securities. | |||||||
Pfizer Inc. | 2020 Form 10-K |
114
|
4.24 |
Except as set forth in Exhibits 4.1-22 above, the instruments defining the rights of holders of long-term debt securities of the Company and its subsidiaries have been omitted. We agree to furnish to the SEC, upon request, a copy of each instrument with respect to issuances of long-term debt of the Company and its subsidiaries.
|
|||||||
2001 Stock and Incentive Plan is incorporated by reference from our Proxy Statement for the 2001 Annual Meeting of Shareholders. | ||||||||
Pfizer Inc. 2004 Stock Plan, as Amended and Restated is incorporated by reference from our 2011 Annual Report on Form 10-K. | ||||||||
*10.3
|
Amendment No. 1 to Pfizer 2004 Stock Plan. | |||||||
Pfizer Inc. 2014 Stock Plan is incorporated by reference from our Proxy Statement for the 2014 Annual Meeting of Shareholders. | ||||||||
*10.5
|
Amendment No. 1 to Pfizer Inc. 2014 Stock Plan. | |||||||
Form of Acknowledgment and Consent and Summary of Key Terms for Grants of RSUs, TSRUs, PPSs and PSAs is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended March 29, 2020. | ||||||||
Form of Executive Grant Letter is incorporated by reference from our 2015 Annual Report on Form 10-K. | ||||||||
Pfizer Consolidated Supplemental Pension Plan for United States and Puerto Rico Employees is incorporated by reference from our 2017 Annual Report on Form 10-K. | ||||||||
Amendment No. 1 to the Pfizer Consolidated Supplemental Pension Plan for United States and Puerto Rico Employees is incorporated by reference from our 2018 Annual Report on Form 10-K. | ||||||||
Amendment No. 2 to the Pfizer Consolidated Supplemental Pension Plan for United States and Puerto Rico Employees. | ||||||||
Pfizer Supplemental Savings Plan is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended April 3, 2016. | ||||||||
Amendment No. 1 to the Pfizer Supplemental Savings Plan (Amended and Restated as of January 1, 2016), is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended October 1, 2017. | ||||||||
Amendment No. 2 to the Pfizer Supplemental Savings Plan is incorporated by reference from our 2017 Annual Report on Form 10-K. | ||||||||
Amendment No. 3 to the Pfizer Supplemental Savings Plan is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended September 30, 2018. | ||||||||
Amendment No. 4 to the Pfizer Supplemental Savings Plan is incorporated by reference from our 2018 Annual Report on Form 10-K. | ||||||||
Amendment No. 5 to the Pfizer Supplemental Savings Plan is incorporated by reference from our 2018 Annual Report on Form 10-K. | ||||||||
Amendment No. 6 to the Pfizer Supplemental Savings Plan is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended June 30, 2019. | ||||||||
Amendment No. 7 to the Pfizer Supplemental Savings Plan is incorporated by reference from our 2019 Annual Report on Form 10-K. | ||||||||
Amendment No. 8 to the Pfizer Supplemental Savings Plan. | ||||||||
Amendment No. 9 to the Pfizer Supplemental Savings Plan. | ||||||||
Amended and Restated Pfizer Inc. Global Performance Plan. | ||||||||
Amended and Restated Deferred Compensation Plan is incorporated by reference from our 2012 Annual Report on Form 10-K. | ||||||||
Amendment to Amended and Restated Deferred Compensation Plan, dated June 20, 2013, is incorporated by reference from our 2013 Annual Report on Form 10-K. | ||||||||
Amendment No. 2 to Amended and Restated Deferred Compensation Plan, dated April 27, 2016, is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended July 3, 2016. | ||||||||
Amendment No. 3 to Amended and Restated Deferred Compensation Plan. | ||||||||
Wyeth 2005 (409A) Deferred Compensation Plan (frozen as of January 2012), together with certain Amendments, is incorporated by reference from our 2013 Annual Report on Form 10-K. | ||||||||
Amendment No. 2 to Wyeth 2005 (409A) Deferred Compensation Plan. | ||||||||
Amended and Restated Wyeth Supplemental Employee Savings Plan (effective as of January 1, 2005 and frozen as of January 2012), together with all material Amendments is incorporated by reference from our 2011 Annual Report on Form 10-K. | ||||||||
Amendment to Amended and Restated Wyeth Supplemental Employee Savings Plan, dated June 20, 2013, is incorporated by reference from our 2013 Annual Report on Form 10-K. |
Pfizer Inc. | 2020 Form 10-K |
115
|
The form of Indemnification Agreement with each of our non-employee Directors is incorporated by reference from our 1996 Annual Report on Form 10-K. | ||||||||
The form of Indemnification Agreement with each of the Named Executive Officers identified in our Proxy Statement for the 2020 Annual Meeting of Shareholders is incorporated by reference from our 1997 Annual Report on Form 10-K. | ||||||||
Letter to Frank A. D’Amelio regarding replacement pension benefit dated August 22, 2007 is incorporated by reference from our Current Report on Form 8-K filed on August 22, 2007. | ||||||||
Pfizer Inc. Executive Severance Plan is incorporated by referenced from our Current Report on Form 8-K filed on February 20, 2009. | ||||||||
Amendment No. 1 to the Pfizer Inc. Executive Severance Plan is incorporated by reference from our 2018 Annual Report on Form 10-K. | ||||||||
Amendment No. 2 to the Pfizer Inc. Executive Severance Plan is incorporated by reference from our 2019 Annual Report on Form 10-K. | ||||||||
Amendment No. 3 to the Pfizer Inc. Executive Severance Plan. | ||||||||
Annual Retainer Unit Award Plan (for Non-Employee Directors) (frozen as of March 1, 2006) as amended, is incorporated by reference from our 2008 Annual Report on Form 10-K. | ||||||||
Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors, as amended, is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended September 28, 2014. | ||||||||
Form of Special Award Letter Agreement is incorporated by reference from our Current Report on Form 8-K filed on October 28, 2009. | ||||||||
Offer Letter to G. Mikael Dolsten, dated April 6, 2009, is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended April 3, 2011. | ||||||||
Form of Special Performance-Based Incentive Award Letter is incorporated by reference from our 2017 Annual Report on
Form 10-K. |
||||||||
Form of Special Performance-Based Incentive Grant Letter is incorporated by reference from our 2017 Annual Report on
Form 10-K. |
||||||||
Pfizer Inc. 2019 Stock Plan is incorporated by reference from our Proxy Statement for the 2019 Annual Meeting of Shareholders. | ||||||||
Time Sharing Agreement, dated July 9, 2020, between Pfizer Inc. and Albert Bourla is incorporated by reference from our Quarterly Report on Form 10-Q for the period ended June 28, 2020. | ||||||||
*21
|
Subsidiaries of the Company. | |||||||
*23
|
Consent of Independent Registered Public Accounting Firm. | |||||||
*24
|
Power of Attorney (included as part of signature page). | |||||||
*31.1
|
Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
*31.2
|
Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
*32.1
|
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. | |||||||
*32.2
|
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. | |||||||
Exhibit 101: | ||||||||
*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. | |||||||
*101.SCH | Inline XBRL Taxonomy Extension Schema | |||||||
*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||
*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | |||||||
*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
*101.DEF | Inline XBRL Taxonomy Extension Definition Document | |||||||
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. |
ITEM 16. | FORM 10-K SUMMARY |
Pfizer Inc. | 2020 Form 10-K |
116
|
Pfizer Inc. | |||||||||||
Dated: February 25, 2021 | By: | /S/ MARGARET M. MADDEN | |||||||||
Margaret M. Madden
Senior Vice President and Corporate Secretary Chief Governance Counsel |
Signature | Title | Date | ||||||||||||
/S/ ALBERT BOURLA
Albert Bourla
|
Chairman and Chief Executive Officer
(Principal Executive Officer) |
February 23, 2021 | ||||||||||||
/S/ FRANK A. D’AMELIO
Frank A. D’Amelio
|
Chief Financial Officer and Executive Vice President, Global Supply (Principal Financial Officer)
|
February 23, 2021 | ||||||||||||
/S/ JENNIFER B. DAMICO
Jennifer B. Damico
|
Senior Vice President and Controller
(Principal Accounting Officer) |
February 24, 2021 | ||||||||||||
/S/ RONALD E. BLAYLOCK
Ronald E. Blaylock |
Director | February 24, 2021 | ||||||||||||
/S/ SUSAN DESMOND-HELLMANN
Susan Desmond-Hellmann
|
Director | February 23, 2021 | ||||||||||||
/S/ JOSEPH J. ECHEVARRIA
Joseph J. Echevarria
|
Director | February 23, 2021 | ||||||||||||
/S/ SCOTT GOTTLIEB
Scott Gottlieb
|
Director | February 23, 2021 | ||||||||||||
/S/ HELEN H. HOBBS
Helen H. Hobbs
|
Director | February 23, 2021 | ||||||||||||
/S/ SUSAN HOCKFIELD
Susan Hockfield
|
Director | February 23, 2021 | ||||||||||||
/S/ DAN R. LITTMAN
Dan R. Littman
|
Director | February 23, 2021 | ||||||||||||
/S/ SHANTANU NARAYEN
Shantanu Narayen
|
Director | February 23, 2021 | ||||||||||||
/S/ SUZANNE NORA JOHNSON
Suzanne Nora Johnson
|
Director | February 23, 2021 | ||||||||||||
/S/ JAMES QUINCEY
James Quincey
|
Director | February 23, 2021 | ||||||||||||
/S/ JAMES C. SMITH
James C. Smith
|
Director | February 23, 2021 |
Pfizer Inc. | 2020 Form 10-K |
117
|
PFIZER INC. | |||||
By: | |||||
/s/ Douglas E. Giordano | |||||
Name: Douglas E. Giordano | |||||
Title: Senior Vice President, Worldwide Business Development | |||||
UPJOHN INC. | |||||
By: | |||||
/s/ Sanjeev Narula | |||||
Name: Sanjeev Narula | |||||
Title: Authorized Officer | |||||
Group 1 Countries
(Accumulation Of Monthly Daily Earnings and Targets)
|
||||||||||||||
AUS | AUSTRALIA |
KAZ
|
KAZAKHSTAN | |||||||||||
AUT | AUSTRIA | KOR | KOREA, REPUBLIC OF | |||||||||||
ZAE | AZERBAIJAN | LVA | LATVIA | |||||||||||
BLR | BELARUS | LTU | LITHUANIA | |||||||||||
BEL | BELGIUM | LUX | LUXEMBOURG | |||||||||||
BIH | BOSNIA & HERZEGOVINA | MYS | MALAYSIA | |||||||||||
BOL | BOLIVIA | MEX | MEXICO | |||||||||||
BRA | BRAZIL | NLD | NETHERLANDS | |||||||||||
BGR | BULGARIA | NZL | NEW ZEALAND | |||||||||||
CAN | CANADA | NIC | NICARAGUA | |||||||||||
CHL | CHILE | NOR | NORWAY | |||||||||||
CHN | CHINA | PAK | PAKISTAN | |||||||||||
COL | COLOMBIA | PHL | PHILIPPINES | |||||||||||
CYP | CYPRUS | POL | POLAND | |||||||||||
HRV | CROATIA | PRT | PORTUGAL | |||||||||||
CZE | CZECH REPUBLIC | ROU | ROMANIA | |||||||||||
DNK | DENMARK | RUS | RUSSIAN FEDERATION | |||||||||||
DOM | DOMINICAN REPUBLIC | SRB | SERBIA | |||||||||||
SLV | EL SALVADOR | SGP | SINGAPORE | |||||||||||
EST | ESTONIA | SVK | SLOVAKIA | |||||||||||
FIN | FINLAND | SVN | SLOVENIA | |||||||||||
FRA | FRANCE | ESP | SPAIN | |||||||||||
GEO | GEORGIA | SWE | SWEDEN | |||||||||||
DEU | GERMANY | CHE | SWITZERLAND | |||||||||||
GRC | GREECE | TWN | TAIWAN | |||||||||||
HND | HONDURAS | THA | THAILAND | |||||||||||
HKG | HONG KONG | TUR | TURKEY | |||||||||||
HUN | HUNGARY | UKR | UKRAINE | |||||||||||
IND | INDIA | GBR | UNITED KINGDOM | |||||||||||
IDN | INDONESIA | USA | UNITED STATES | |||||||||||
IRL | IRELAND | VEN | VENEZUELA | |||||||||||
ISR | ISRAEL | VNM | VIET NAM | |||||||||||
ITA | ITALY | |||||||||||||
JPN | JAPAN |
Group 2 Countries
(December 31 Salary and Target)
|
|||||
DZA | ALGERIA | ||||
ARG | ARGENTINA | ||||
BHR | BAHRAIN | ||||
CMR | CAMEROON | ||||
CRI | COSTA RICA | ||||
IVC | COTE D'IVOIRE (IVORY COAST) | ||||
ECU | ECUADOR | ||||
EGY | EGYPT | ||||
GHA | GHANA | ||||
GTM | GUATEMALA | ||||
IRN | IRAN (ISLAMIC REPUBLIC OF) | ||||
IRQ | IRAQ | ||||
JOR | JORDAN | ||||
KEN | KENYA | ||||
KWT | KUWAIT | ||||
LBN | LEBANON | ||||
LBY | LIBYAN ARAB JAMAHIRIYA | ||||
MAR | MOROCCO | ||||
NGA | NIGERIA | ||||
OMN | OMAN | ||||
PAN | PANAMA | ||||
PRY | PARAGUAY | ||||
PER | PERU | ||||
QAT | QATAR | ||||
SAU | SAUDI ARABIA | ||||
SEN | SENEGAL | ||||
ZAF | SOUTH AFRICA | ||||
SDN | SUDAN | ||||
SYR | SYRIAN ARAB REPUBLIC | ||||
TUN | TUNISIA | ||||
ARE | UNITED ARAB EMIRATES | ||||
URY | URUGUAY | ||||
YEM | YEMEN |
Company Name | Where Incorporated or Organized | ||||
Agouron Pharmaceuticals, LLC | California | ||||
AH Robins LLC | Delaware | ||||
AHP Manufacturing B.V. | Netherlands | ||||
Alpharma Pharmaceuticals LLC | Delaware | ||||
American Food Industries LLC | Delaware | ||||
Anacor Pharmaceuticals, Inc. | Delaware | ||||
Arixa Pharmaceuticals Australia Pty Ltd | Australia | ||||
Arixa Pharmaceuticals, Inc. | Delaware | ||||
Array BioPharma Inc. | Delaware | ||||
Bamboo Therapeutics, Inc. | Delaware | ||||
Blue Whale Re Ltd. | Vermont | ||||
C.P. Pharmaceuticals International C.V. | Netherlands | ||||
CICL Corporation | Delaware | ||||
COC I Corporation | Delaware | ||||
Coley Pharmaceutical GmbH | Germany | ||||
Coley Pharmaceutical Group, Inc. | Delaware | ||||
Cyanamid de Argentina S.A. | Delaware | ||||
Cyanamid de Colombia, S.A. | Delaware | ||||
Distribuidora Mercantil Centro Americana, S.A. | Delaware | ||||
Encysive Pharmaceuticals Inc. | Delaware | ||||
Farminova Produtos Farmaceuticos de Inovacao, Lda. | Portugal | ||||
FoldRx Pharmaceuticals, Inc. | Delaware | ||||
Fort Dodge Manufatura Ltda. | Brazil | ||||
G. D. Searle & Co. Limited | United Kingdom | ||||
G. D. Searle International Capital LLC | Delaware | ||||
Genetics Institute, LLC | Delaware | ||||
GenTrac, Inc. | Wisconsin | ||||
GI Europe, Inc. | Delaware | ||||
GI Japan, Inc. | Delaware | ||||
Hospira Adelaide Pty Ltd | Australia | ||||
Hospira Australia Pty Ltd | Australia | ||||
Hospira Benelux BVBA | Belgium | ||||
Hospira Holdings (S.A.) Pty Ltd | Australia | ||||
Hospira Limited | Hong Kong | ||||
Hospira Philippines, Inc. | Philippines | ||||
Hospira Pte. Ltd. | Singapore | ||||
Hospira Pty Limited | Australia | ||||
Hospira Puerto Rico, LLC | Delaware | ||||
Hospira Singapore Pte Ltd | Singapore | ||||
Hospira UK Limited | United Kingdom | ||||
Hospira Worldwide, LLC | Delaware |
Hospira Zagreb d.o.o. | Croatia | ||||
Hospira, Inc. | Delaware | ||||
InnoPharma, Inc. | Delaware | ||||
International Affiliated Corporation LLC | Delaware | ||||
JMI-Daniels Pharmaceuticals, Inc. | Florida | ||||
John Wyeth & Brother Limited | United Kingdom | ||||
Kiinteistö oy Espoon Pellavaniementie 14 | Finland | ||||
King Pharmaceuticals Holdings LLC | Delaware | ||||
King Pharmaceuticals LLC | Delaware | ||||
King Pharmaceuticals Research and Development, LLC | Delaware | ||||
Korea Pharma Holding Company Limited | Hong Kong | ||||
Laboratoires Pfizer, S.A. | Morocco | ||||
Laboratorios Pfizer Ltda. | Brazil | ||||
Laboratórios Pfizer, Lda. | Portugal | ||||
Laboratorios Wyeth LLC | Pennsylvania | ||||
Laboratorios Wyeth S.A. | Venezuela | ||||
Mayne Pharma IP Holdings (Euro) Pty Ltd | Australia | ||||
Medivation Field Solutions LLC | Delaware | ||||
Medivation LLC | Delaware | ||||
Medivation Neurology LLC | Delaware | ||||
Medivation Prostate Therapeutics LLC | Delaware | ||||
Medivation Services LLC | Delaware | ||||
Medivation Technologies LLC | Delaware | ||||
Meridian Medical Technologies, Inc. | Delaware | ||||
Monarch Pharmaceuticals, LLC | Tennessee | ||||
MTG Divestitures LLC | Delaware | ||||
Neusentis Limited | United Kingdom | ||||
PAH USA IN8 LLC | Delaware | ||||
Parke Davis Limited | Hong Kong | ||||
Parke, Davis & Company LLC | Michigan | ||||
Parkedale Pharmaceuticals, Inc. | Michigan | ||||
PBG Puerto Rico LLC | Puerto Rico | ||||
P-D Co., LLC | Delaware | ||||
Peak Enterprises LLC | Delaware | ||||
PF Consumer Healthcare Holdings LLC | Delaware | ||||
PF Consumer Healthcare Holdings US Inc. | Delaware | ||||
PF Czech Republic Holdings B.V. | Netherlands | ||||
PF Finland Holdings B.V. | Netherlands | ||||
PF OFG Ireland 2 B.V. | Netherlands | ||||
PF OFG South Korea 1 B.V. | Netherlands | ||||
PF OFG South Korea 2 B.V. | Netherlands | ||||
PF PR Holdings C.V. | Netherlands | ||||
PF PRISM C.V. | Netherlands | ||||
PF PRISM Holdings B.V. | Netherlands | ||||
PF PRISM IMB B.V. | Netherlands | ||||
PF Prism S.á.r.l. | Luxembourg | ||||
PFE PHAC Holdings 1 LLC | Delaware |
PFE Wyeth-Ayerst (Asia) LLC | Delaware | ||||
Pfizer | France | ||||
Pfizer (China) Research and Development Co. Ltd. | People’s Republic of China | ||||
Pfizer (Malaysia) Sdn Bhd | Malaysia | ||||
Pfizer (Perth) Pty Ltd | Australia | ||||
Pfizer (Thailand) Limited | Thailand | ||||
PFIZER (VIETNAM) LIMITED COMPANY | Vietnam | ||||
Pfizer (Wuhan) Research and Development Co. Ltd. | People’s Republic of China | ||||
Pfizer AB | Sweden | ||||
Pfizer Afrique de L'Ouest | Senegal | ||||
Pfizer AG | Switzerland | ||||
Pfizer Anti-Infectives AB | Sweden | ||||
Pfizer ApS | Denmark | ||||
Pfizer AS | Norway | ||||
Pfizer Asia Manufacturing Pte. Ltd. | Singapore | ||||
Pfizer Australia Holdings B.V. | Netherlands | ||||
Pfizer Australia Holdings Pty Limited | Australia | ||||
Pfizer Australia Investments Pty Ltd | Australia | ||||
Pfizer Australia Pty Ltd | Australia | ||||
Pfizer B.V. | Netherlands | ||||
Pfizer Biofarmacêutica, Sociedade Unipessoal Lda | Portugal | ||||
Pfizer Biologics (Hangzhou) Co. Ltd | People’s Republic of China | ||||
Pfizer Biopharma Egypt LLC | Egypt | ||||
Pfizer Biopharmaceuticals Egypt LLC | Egypt | ||||
Pfizer Bolivia S.A. | Bolivia | ||||
Pfizer Canada ULC / Pfizer Canada SRI | Canada | ||||
Pfizer Chile S.A. | Chile | ||||
Pfizer Cia. Ltda. | Ecuador | ||||
Pfizer Colombia Spinco I LLC | Pennsylvania | ||||
Pfizer Commercial Holdings TRAE Kft. | Hungary | ||||
Pfizer Consumer Healthcare | United Kingdom | ||||
Pfizer Cork Limited | Ireland | ||||
Pfizer Corporation Austria Gesellschaft m.b.H. | Austria | ||||
Pfizer Corporation Hong Kong Limited | Hong Kong | ||||
Pfizer Corporation S. de R.L. | Panama | ||||
Pfizer Croatia d.o.o. | Croatia | ||||
Pfizer Deutschland GmbH | Germany | ||||
Pfizer Development B.V. | Netherlands | ||||
Pfizer Development LLC | Delaware | ||||
Pfizer Development LP | United Kingdom | ||||
Pfizer Development Services (UK) Limited | United Kingdom | ||||
Pfizer East India B.V. | Netherlands | ||||
Pfizer Eastern Investments B.V. | Netherlands | ||||
Pfizer ESP Pty. Ltd. | Australia | ||||
Pfizer Export B.V. | Netherlands | ||||
Pfizer Export Company | Ireland | ||||
Pfizer Finance Share Service (Dalian) Co., Ltd. | People’s Republic of China |
Pfizer Financial Services B.V. | Belgium | ||||
Pfizer France International Investments | France | ||||
Pfizer Free Zone Panama, S. de R.L. | Panama | ||||
Pfizer Global Holdings B.V. | Netherlands | ||||
Pfizer Global Supply Japan Inc. | Japan | ||||
Pfizer Global Trading | Ireland | ||||
Pfizer Gulf FZ-LLC | United Arab Emirates | ||||
Pfizer H.C.P. Corporation | New York | ||||
Pfizer Health AB | Sweden | ||||
Pfizer Health Solutions Inc. | Delaware | ||||
Pfizer Healthcare India Private Limited | India | ||||
Pfizer Healthcare Ireland | Ireland | ||||
Pfizer Hellas, A.E. | Greece | ||||
Pfizer Himalaya Holdings Coöperatief U.A. | Netherlands | ||||
Pfizer Holding France | France | ||||
Pfizer Holding Ventures | Ireland | ||||
Pfizer Holdings Corporation | Delaware | ||||
Pfizer Holdings Europe Unlimited Company | Ireland | ||||
Pfizer Holdings International Corporation | Delaware | ||||
Pfizer Holdings International Luxembourg (PHIL) SARL | Luxembourg | ||||
Pfizer Innovations AB | Sweden | ||||
Pfizer Innovations LLC | Russia | ||||
Pfizer International LLC | New York | ||||
Pfizer International Operations | France | ||||
Pfizer International S. de R.L. | Panama | ||||
Pfizer International Trading (Shanghai) Limited | People’s Republic of China | ||||
Pfizer Investment Capital Unlimited Company | Ireland | ||||
Pfizer Investment Co. Ltd. | People’s Republic of China | ||||
Pfizer Ireland PFE Holding 1 LLC | Delaware | ||||
Pfizer Ireland PFE Holding 2 LLC | Delaware | ||||
Pfizer Ireland Pharmaceuticals | Ireland | ||||
Pfizer Ireland Ventures Unlimited Company | Ireland | ||||
Pfizer Italia S.r.l. | Italy | ||||
Pfizer Japan Inc. | Japan | ||||
Pfizer Laboratories (Pty) Limited | South Africa | ||||
Pfizer Laboratories Limited | Kenya | ||||
Pfizer Leasing Ireland Limited | Ireland | ||||
Pfizer Leasing UK Limited | United Kingdom | ||||
Pfizer Limited | India | ||||
Pfizer Limited | Taiwan | ||||
Pfizer Limited | United Kingdom | ||||
Pfizer Luxco Holdings SARL | Luxembourg | ||||
Pfizer Luxembourg Global Holdings S.à r.l. | Luxembourg | ||||
Pfizer Luxembourg SARL | Luxembourg | ||||
Pfizer Manufacturing Austria G.m.b.H. | Austria | ||||
Pfizer Manufacturing Belgium N.V. | Belgium | ||||
Pfizer Manufacturing Deutschland GmbH | Germany |
Pfizer Manufacturing Deutschland Grundbesitz GmbH & Co. KG | Germany | ||||
Pfizer Manufacturing Holdings LLC | Delaware | ||||
Pfizer Manufacturing Ireland Unlimited Company | Ireland | ||||
Pfizer Manufacturing LLC | Delaware | ||||
Pfizer Manufacturing Services | Ireland | ||||
Pfizer MAP Holding, Inc. | Delaware | ||||
Pfizer Medical Technology Group (Belgium) NV | Belgium | ||||
Pfizer Medicamentos Genericos e Participacoes Ltda. | Brazil | ||||
Pfizer Mexico Holding B.V. | Netherlands | ||||
Pfizer New Zealand Limited | New Zealand | ||||
Pfizer Norge AS | Norway | ||||
Pfizer North America Services LLC | Delaware | ||||
Pfizer OTC B.V. | Netherlands | ||||
Pfizer Overseas LLC | Delaware | ||||
Pfizer Oy | Finland | ||||
Pfizer Pakistan Limited | Pakistan | ||||
Pfizer PFE ApS | Denmark | ||||
Pfizer PFE AsiaPac Holding B.V. | Netherlands | ||||
Pfizer PFE Australia Pty Ltd | Australia | ||||
Pfizer PFE CIA. Ltda. | Ecuador | ||||
Pfizer PFE Eastern Investments B.V. | Netherlands | ||||
Pfizer PFE Finland Oy | Finland | ||||
Pfizer PFE Global Holdings B.V. | Netherlands | ||||
Pfizer PFE İlaçları Anonim Şirketi | Turkey | ||||
Pfizer PFE Limited | Taiwan | ||||
Pfizer PFE Pharmaceuticals Israel Holding LLC | Delaware | ||||
Pfizer PFE Pharmaceuticals Israel Ltd. | Israel | ||||
Pfizer PFE Service Company Holding B.V. | Netherlands | ||||
Pfizer PFE Spain B.V. | Netherlands | ||||
Pfizer PFE UK Holding 4 LP | United Kingdom | ||||
Pfizer Pharm Algerie | Algeria | ||||
Pfizer Pharma GmbH | Germany | ||||
Pfizer Pharma PFE GmbH | Germany | ||||
Pfizer Pharmaceutical (Wuxi) Co., Ltd. | People’s Republic of China | ||||
Pfizer Pharmaceutical Trading Limited Liability Company (a/k/a Pfizer Kft. or Pfizer LLC) | Hungary | ||||
Pfizer Pharmaceuticals Global B.V. | Netherlands | ||||
Pfizer Pharmaceuticals Israel Ltd. | Israel | ||||
Pfizer Pharmaceuticals Korea Limited | Korea, Republic of | ||||
Pfizer Pharmaceuticals Science and Technology Co., Ltd. | People’s Republic of China | ||||
Pfizer Pharmaceuticals Tunisie Sarl | Tunisia | ||||
Pfizer Pigments Inc. | Delaware | ||||
Pfizer Polska Sp. z.o.o. | Poland | ||||
Pfizer Private Limited | Singapore | ||||
Pfizer Production LLC | Delaware | ||||
Pfizer Products Inc. | Connecticut | ||||
Pfizer Products India Private Limited | India |
Pfizer R&D Holding B.V. | Netherlands | ||||
Pfizer R&D Japan G.K. | Japan | ||||
Pfizer R&D UK Limited | United Kingdom | ||||
Pfizer Research (NC), Inc. | Delaware | ||||
Pfizer Romania SRL | Romania | ||||
Pfizer S.A. | Peru | ||||
Pfizer S.A.S. | Colombia | ||||
Pfizer S.G.P.S. Lda. | Portugal | ||||
Pfizer S.r.l. | Italy | ||||
Pfizer S.R.L. | Argentina | ||||
Pfizer SA (Belgium) | Belgium | ||||
Pfizer Saudi Limited | Saudi Arabia | ||||
Pfizer Saudi Trading LLC | Saudi Arabia | ||||
Pfizer Service Company BVBA | Belgium | ||||
Pfizer Service Company Ireland Unlimited Company | Ireland | ||||
Pfizer Shared Services Unlimited Company | Ireland | ||||
Pfizer Shareholdings Intermediate SARL | Luxembourg | ||||
Pfizer Singapore Holding Pte. Ltd. | Singapore | ||||
Pfizer Specialties Limited | Nigeria | ||||
Pfizer SRB d.o.o. | Serbia | ||||
Pfizer Strategic Investment Holdings LLC | Delaware | ||||
Pfizer Trading Polska sp.z.o.o. | Poland | ||||
Pfizer Transactions LLC | Delaware | ||||
Pfizer Tunisie SA | Tunisia | ||||
Pfizer Vaccines LLC | Delaware | ||||
Pfizer Venezuela, S.A. | Venezuela | ||||
Pfizer Venture Investments LLC | Delaware | ||||
Pfizer Ventures (US) LLC | Delaware | ||||
Pfizer Ventures LLC | Delaware | ||||
Pfizer Worldwide Services Unlimited Company | Ireland | ||||
Pfizer Zona Franca, S.A. | Costa Rica | ||||
Pfizer, Inc. | Philippines | ||||
Pfizer, S.A. | Costa Rica | ||||
Pfizer, S.A. de C.V. | Mexico | ||||
Pfizer, S.L. | Spain | ||||
Pfizer, spol. s r.o. | Czech Republic | ||||
Pharmacia & Upjohn Company LLC | Delaware | ||||
Pharmacia & Upjohn LLC | Delaware | ||||
Pharmacia Brasil Ltda. | Brazil | ||||
Pharmacia Hepar LLC | Delaware | ||||
Pharmacia Holding AB | Sweden | ||||
Pharmacia Inter-American LLC | Pennsylvania | ||||
Pharmacia International B.V. | Netherlands | ||||
Pharmacia Limited | United Kingdom | ||||
Pharmacia LLC | Delaware | ||||
PHIVCO Corp. | Delaware | ||||
PHIVCO Holdco S.à r.l. | Luxembourg |
PIMB OFG Spain Holding, S.L. | Spain | ||||
PRISM Holdings B.V. | Netherlands | ||||
PT. Pfizer Indonesia | Indonesia | ||||
Purepac Pharmaceutical Holdings LLC | Delaware | ||||
Renrall LLC | Wyoming | ||||
Rinat Neuroscience Corp. | Delaware | ||||
Roerig S.A. | Chile | ||||
Searle Laboratorios, Lda. | Portugal | ||||
Servicios P&U, S. de R.L. de C.V. | Mexico | ||||
Shiley LLC | California | ||||
Sinergis Farma-Produtos Farmaceuticos, Lda. | Portugal | ||||
Solinor LLC | Delaware | ||||
Sugen LLC | Delaware | ||||
Tabor LLC | Delaware | ||||
Upjohn Laboratorios Lda. | Portugal | ||||
Vicuron Holdings LLC | Delaware | ||||
Warner Lambert del Uruguay S.A. | Uruguay | ||||
Warner-Lambert Company AG | Switzerland | ||||
Warner-Lambert Company LLC | Delaware | ||||
W-L LLC | Delaware | ||||
Wyeth AB | Sweden | ||||
Wyeth Ayerst Inc. | Delaware | ||||
Wyeth Ayerst S.à r.l. | Luxembourg | ||||
Wyeth Europa Limited | United Kingdom | ||||
Wyeth Farma, S.A. | Spain | ||||
Wyeth Holdings LLC | Maine | ||||
Wyeth Industria Farmaceutica Ltda. | Brazil | ||||
Wyeth Lederle S.r.l. | Italy | ||||
Wyeth LLC | Delaware | ||||
Wyeth Pakistan Limited | Pakistan | ||||
Wyeth Pharmaceuticals FZ-LLC | United Arab Emirates | ||||
Wyeth Pharmaceuticals India Private Limited | India | ||||
Wyeth Pharmaceuticals LLC | Delaware | ||||
Wyeth Subsidiary Illinois Corporation | Illinois | ||||
Wyeth Whitehall Export GmbH | Austria | ||||
Wyeth-Ayerst (Asia) LLC | Delaware | ||||
Wyeth-Ayerst International LLC | Delaware | ||||
Wyeth-Ayerst Promotions Limited | Delaware |
/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 | ||||||||
February 25, 2021 |
/s/ FRANK A. D'AMELIO | ||||||||
Frank A. D'Amelio | ||||||||
Chief Financial Officer and Executive Vice President,
Global Supply |
||||||||
February 25, 2021 |