18. Segment, Geographic and Other Revenue Information

A. Segment Information

We manage our operations through five operating segments––Primary Care, Specialty Care and Oncology, Established Products and Emerging Markets, Animal Health and Consumer Healthcare and Nutrition. Each operating segment has responsibility for its commercial activities and for certain research and development activities related to in-line products and IPR&D projects that generally have achieved proof-of-concept. Previously, we managed our operations through two operating segments––Biopharmaceutical and Diversified. We have restated our prior period segment information to conform with the current period presentation.

We regularly review our segments and the approach used by management to evaluate performance and allocate resources.

Operating Segments

A description of each of our five operating segments follows:

•

Primary Care operating segment––includes revenues and earnings, as defined by management, from human pharmaceutical products primarily prescribed by primary-care physicians, and may include products in the following therapeutic and disease areas: Alzheimer’s disease, cardiovascular (excluding pulmonary arterial hypertension), erectile dysfunction, genitourinary, major depressive disorder, pain, respiratory and smoking cessation. Examples of products in this unit include Celebrex, Chantix/Champix, Lipitor, Lyrica, Premarin, Pristiq and Viagra. All revenues and earnings for such products are allocated to the Primary Care unit, except those generated in Emerging Markets and those that are managed by the Established Products unit.

•

Specialty Care and Oncology operating segment––comprises the Specialty Care business unit and the Oncology business unit.

Specialty Care––includes revenues and earnings, as defined by management, from most human pharmaceutical products primarily prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: anti-infectives, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. Examples of products in this unit include BeneFIX, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Rebif, ReFacto AF, Revatio, Xalatan , Xyntha and Zyvox. All revenues and earnings for such products are allocated to the Specialty Care unit, except those generated in Emerging Markets and those that are managed by the Established Products unit.

Oncology––includes revenues and earnings, as defined by management, from human prescription pharmaceutical products addressing oncology and oncology-related illnesses. Examples of products in this unit include Aromasin, Sutent, Torisel and Xalkori. All revenues and earnings for such products are allocated to the Oncology unit, except those generated in Emerging Markets and those that are managed by the Established Products unit.

•

Established Products and Emerging Markets operating segment––comprises the Established Products business unit and the Emerging Markets business unit.

Established Products––generally includes revenues and earnings, as defined by management, from human prescription pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically, products are transferred to this unit in the beginning of the fiscal year following loss of patent protection or marketing exclusivity. In certain situations, products may be transferred to this unit at a different point than the beginning of the fiscal year following loss of patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues and earnings generated in Emerging Markets. Examples of products in this unit include Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin.

Emerging Markets––includes revenues and earnings, as defined by management, from all human prescription pharmaceutical products sold in Emerging Markets, including Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

•

Animal Health and Consumer Healthcare operating segment—comprises the Animal Health business unit and the Consumer Healthcare business unit.

Animal Health––includes worldwide revenues and earnings, as defined by management, from products and services to prevent and treat disease in livestock and companion animals, including vaccines, parasiticides and anti-infectives.

Consumer Healthcare––generally includes worldwide revenues and earnings, as defined by management, from non-prescription products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. Products marketed by Consumer Healthcare include Advil, Caltrate, Centrum, ChapStick, Preparation H and Robitussin.

•

Nutrition operating segment––generally includes revenues and earnings, as defined by management, from a full line of infant and toddler nutritional products sold outside of the U.S. and Canada.

Our chief operating decision maker uses the revenues and earnings of the five operating segments, among other factors, for performance evaluation and resource allocation. For the operating segments that comprise more than one business unit, a single segment manager has responsibility for those business units.

Other Costs and Business Activities

Certain costs are not allocated to our operating segment results, such as costs associated with the following:

•

Worldwide Research and Development (WRD), which is generally responsible for human health research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate business unit for possible clinical and commercial development. R&D spending may include upfront and milestone payments for intellectual property rights. This organization also has responsibility for certain science-based platform services, which provide technical expertise and other services to the various research and development projects.

•

Pfizer Medical, which is responsible for all human-health-related regulatory submissions and interactions with regulatory agencies. This organization is also responsible for the collection, evaluation and reporting of all safety event information related to our human health products and for conducting clinical trial audits and readiness reviews and for providing Pfizer-related medical information to healthcare providers.

•

Corporate, which is responsible for platform functions such as finance, global real estate operations, human resources, legal, compliance, science and technology, worldwide procurement, worldwide public affairs and policy and worldwide technology. These costs also include compensation costs and other miscellaneous operating expenses not charged to our operating segments, as well as interest income and expense.

•

Certain transactions and events such as (i) purchase accounting adjustments, where we incur expenses associated with the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment; (ii) acquisition-related activities, where we incur costs for restructuring, integration, implementation and executing the transaction; and (iii) certain significant items, which include non-acquisition-related restructuring costs, as well as costs incurred for legal settlements, asset impairments and sales of assets or businesses.

Segment Assets

We manage our assets on a total company basis, not by operating segment, as many of our operating assets are shared (such as our plant network assets) or commingled (such as accounts receivable, as many of our customers are served by multiple operating segments). Therefore, our chief operating decision maker does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were approximately $188 billion at December 31, 2011 and approximately $195 billion at December 31, 2010.

Selected Income Statement Information

Selected income statement information follows:


(MILLIONS OF DOLLARS)	REVENUES		R&D EXPENSES			EARNINGS^(a)			DEPRECIATION & AMORTIZATION^(b)
YEAR ENDED DECEMBER 31, 2011^(c)
Primary Care		$22,670		$1,307			$15,001			$ 247
Specialty Care and Oncology		16,568		1,561			10,789			419
Established Products and Emerging Markets		18,509		441			9,417			422
Animal Health and Consumer Healthcare		7,241		425			2,020			232
Total reportable segments		64,988		3,734			37,227			1,320
Nutrition and other business activities^(d)		2,437		3,378			(2,793	)		230
Reconciling Items:
Corporate^(e)		—		1,309			(7,430	)		541
Purchase accounting adjustments^(f)		—		(2	)		(6,801	)		5,565
Acquisition-related costs^(g)		—		23			(1,983	)		624
Certain significant items^(h)		—		656			(4,354	)		615
Other unallocated⁽ⁱ⁾		—		14			(1,104	)		131
		$67,425		$9,112			$12,762			$9,026

YEAR ENDED DECEMBER 31, 2010
Primary Care		$23,328		$1,473			$15,773			$201
Specialty Care and Oncology		16,435		1,624			10,571			432
Established Products and Emerging Markets		18,760		452			10,100			418
Animal Health and Consumer Healthcare		6,347		428			1,569			197
Total reportable segments		64,870		3,977			38,013			1,248
Nutrition and other business activities^(d)		2,187		3,743			(3,263	)		242
Reconciling Items:
Corporate^(e)		—		1,567			(7,990	)		619
Purchase accounting adjustments^(f)		—		26			(8,257	)		5,477
Acquisition-related costs^(g)		—		34			(3,989	)		788
Certain significant items^(h)		—		18			(3,964	)		—
Other unallocated⁽ⁱ⁾		—		27			(1,268	)		113
		$67,057		$9,392			$9,282			$8,487

YEAR ENDED DECEMBER 31, 2009^(c)
Primary Care		$22,576		$1,407			$15,100			$130
Specialty Care and Oncology		8,925		1,060			4,661			269
Established Products and Emerging Markets		13,947		392			6,955			360
Animal Health and Consumer Healthcare		3,258		297			812			142
Total reportable segments		48,706		3,156			27,528			901
Nutrition and other business activities^(d)		563		2,706			(2,751	)		181
Reconciling Items:
Corporate^(e)		—		1,296			(4,657	)		526
Purchase accounting adjustments^(f)		—		37			(3,787	)		2,799
Acquisition-related costs^(g)		—		13			(4,025	)		241
Certain significant items^(h)		—		56			(1,511	)		—
Other unallocated⁽ⁱ⁾		—		560			(123	)		109
		$49,269		$7,824			$10,674			$4,757

^(a)	Income from continuing operations before provision for taxes on income.

^(b)	Certain production facilities are shared. Depreciation is allocated based on estimates of physical production.

^(c)	For 2011, includes King commencing on the acquisition date of January 31, 2011. For 2009, includes Wyeth commencing on the acquisition date of October 15, 2009.

^(d)

Other business activities includes the revenues and operating results of Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales operation, and the research and development costs managed by our Worldwide Research and Development organization and our Pfizer Medical organization.

^(e)

Corporate for R&D expenses includes, among other things, administration expenses and compensation expenses associated with our research and development activities and for Earnings includes, among other things, administration expenses, interest income/(expense), certain compensation and other costs not charged to our operating segments.

^(f)	Purchase accounting adjustments include certain charges related to the fair value adjustments to inventory, intangible assets and property, plant and equipment.

^(g)

Acquisition-related costs can include costs associated with acquiring, integrating and restructuring newly acquired businesses, such as transaction costs, integration costs, restructuring charges and additional depreciation associated with asset restructuring (see Note 3. Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives for additional information).

^(h)

Certain significant items are substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include restructuring charges and implementation costs associated with our cost-reduction and productivity initiatives that are not associated with an acquisition, the impact of certain tax and/or legal settlements and certain asset impairments.

⁽ⁱ⁾

Includes overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment. In 2009, R&D expenses include approximately $550 million of Wyeth R&D expenses and Earnings include approximately $900 million of Wyeth earnings and $290 million of operating expenses incurred in Japan associated with our three biopharmaceutical operating segments, where allocation among the segments is not practicable.

Geographic Information

Revenues exceeded $500 million in each of 18 countries outside the U.S. in 2011 and 2010, and in each of 13 countries outside the U.S. in 2009. The U.S. was the only country to contribute more than 10% of total revenues in each year.

Revenues by geographic region follow:



	YEAR ENDED DECEMBER 31,
(MILLIONS OF DOLLARS)	2011		2010		2009
Revenues^(a)
United States	$	26,933	$	28,855	$	21,540
Developed Europe^(b)		16,297		16,345		12,586
Developed Rest of World^(c)		11,091		10,008		8,097
Emerging Markets^(d)		13,104		11,849		7,046
Consolidated	$	67,425	$	67,057	$	49,269

^(a)	For 2011, includes King commencing on the acquisition date of January 31, 2011. For 2009, includes Wyeth commencing on the acquisition date of October 15, 2009.

^(b)	Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries. Euro revenues were approximately $12 billion for each of 2011 and 2010 and $10 billion for 2009.

^(c⁾	Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.

^(d)	Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

Long-lived assets by geographic region follow:



	AS OF DECEMBER 31,
(MILLIONS OF DOLLARS)	2011		2010
Property, plant and equipment, net
United States		$ 7,893		$ 8,537
Developed Europe^(a)		6,023		7,159
Developed Rest of World^(b)		904		854
Emerging Markets^(c)		2,118		2,095
Consolidated		$16,938		$18,645

^(a)	Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.

^(b⁾	Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.

^(c)	Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

Other Revenue Information

Significant Customers

We sell our products primarily to customers in the wholesale sector. In 2011, sales to our three largest U.S. wholesaler customers represented approximately 13%, 10% and 9% of total revenues and, collectively, represented approximately 13% of total accounts receivable as of December 31, 2011. These sales and related accounts receivable were concentrated in our three biopharmaceutical operating segments. In 2010, sales to our three largest U.S. wholesaler customers represented approximately 14%, 10% and 9% of total revenues and, collectively, represented approximately 18% of total accounts receivable as of December 31, 2010.

Significant Product Revenues

Significant product revenues follow:



	YEAR ENDED DECEMBER 31,
(MILLIONS OF DOLLARS)	2011		2010		2009

Revenues from biopharmaceutical products^(a):
Lipitor^(b)		$9,577		$10,733		$11,434
Lyrica		3,693		3,063		2,840
Prevnar 13/Prevenar 13^(c)		3,657		2,416		—
Enbrel (Outside the U.S. and Canada)^(c)		3,666		3,274		378
Celebrex		2,523		2,374		2,383
Viagra		1,981		1,928		1,892
Norvasc		1,445		1,506		1,973
Zyvox		1,283		1,176		1,141
Xalatan/Xalacom		1,250		1,749		1,737
Sutent		1,187		1,066		964
Geodon/Zeldox		1,022		1,027		1,002
Premarin family^(c)		1,013		1,040		213
Genotropin		889		885		887
Detrol/Detrol LA		883		1,013		1,154
Vfend		747		825		798
Chantix/Champix		720		755		700
BeneFIX^(c)		693		643		98
Effexor^(c)		678		1,718		520
Zosyn/Tazocin^(c)		636		952		184
Pristiq^(c)		577		466		82
Zoloft		573		532		516
Caduet		538		527		548
Revatio		535		481		450
Medrol		510		455		457
ReFacto AF/Xyntha^(c)		506		404		47
Prevnar/Prevenar (7-valent)^(c)		488		1,253		287
Zithromax/Zmax		453		415		430
Aricept^(d)		450		454		435
Fragmin		382		341		359
Cardura		380		413		457
Rapamune^(c)		372		388		57
Aromasin		361		483		483
BMP2^(c)		340		400		81
Relpax		341		323		326
Xanax XR		306		307		318
Tygacil^(c)		298		324		54
Neurontin		289		322		327
Diflucan		265		278		281
Arthrotec		242		250		270
Unasyn		231		244		245
Sulperazon		218		213		204
Skelaxin^(e)		203		—		—
Inspra		195		157		130
Dalacin/Cleocin		192		214		241
Methotrexate		191		164		21
Toviaz		187		137		59
Somavert		183		157		147
Alliance revenues^(f)		3,630		4,084		2,925
All other biopharmaceutical products^(g)		6,768		6,194		4,913

Total revenues from biopharmaceutical products		57,747		58,523		45,448

Revenues from other products^(a):
Animal Health^(g)		4,184		3,575		2,764
Consumer Healthcare^(c)		3,057		2,772		494
Nutrition^(c)		2,138		1,867		191
Pfizer CentreSource		299		320		372

Total revenues^(a)		$67,425		$67,057		$49,269

^(a)	For 2011, includes King commencing on the acquisition date of January 31, 2011. For 2009, includes Wyeth commencing on the acquisition date of October 15, 2009.

^(b)	On November 30, 2011, Lipitor lost exclusivity in the U.S. This loss of exclusivity reduced revenues by $326 million in 2011, in comparison with 2010.

^(c)	Acquired from Wyeth.

^(d)	Represents direct sales under license agreement with Eisai Co., Ltd.

⁽^e⁾	Acquired from King.

^(f)	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.

⁽^g⁾	Includes products from legacy Pfizer, legacy Wyeth and legacy King.