Pfizer Provides Historical Consolidated Statements of Income with the Animal Health Business (Zoetis) Reported as a Discontinued Operation
For the information of investors, Pfizer Inc. (NYSE:PFE) is providing the
unaudited condensed consolidated statements of income (statements of
income) of Pfizer for the three months ended March 31, 2013, July 1,
2012 and April 1, 2012, with the financial results of its Animal Health
business reported as a discontinued operation for all periods presented.
These statements were derived from the historical statements of income
of Pfizer for the respective periods. Pfizer’s press release announcing
its financial results for the three months ended June 30, 2013 will be
issued on July 30, 2013.
On June 24, 2013, Pfizer completed the full disposition of Zoetis Inc.
(Zoetis), which was achieved through a series of steps, including the
formation of Zoetis, a separate company to which Pfizer transferred
substantially all of its animal health assets and liabilities, an
initial public offering of a 19.8% interest in Zoetis and an exchange
offer for the remaining 80.2% interest. The financial results of Zoetis,
the standalone public company, may differ from the financial results of
the Animal Health business reflected in Pfizer’s statements of income as
a discontinued operation, as the components of this business differed
from Zoetis.
This financial information is provided for informational purposes only
and should be read in conjunction with Pfizer’s statements of income and
the accompanying notes and related Management’s Discussion and
Analysis of Financial Condition and Results of Operations included
in Pfizer’s Quarterly Reports on Form 10-Q for the quarterly periods
ended March 31, 2013, July 1, 2012 and April 1, 2012.
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PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME(1)
(UNAUDITED)
(millions,
except per common share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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First-Quarter
|
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Second-Quarter
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Revenues
|
|
|
|
$
|
|
|
12,410
|
|
|
|
$
|
|
|
13,845
|
|
|
|
$
|
13,968
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales(2) |
|
|
|
|
|
|
2,263
|
|
|
|
|
|
|
2,383
|
|
|
|
|
2,376
|
|
|
Selling, informational and administrative expenses(2) |
|
|
|
|
|
|
3,217
|
|
|
|
|
|
|
3,678
|
|
|
|
|
3,665
|
|
|
Research and development expenses(2) |
|
|
|
|
|
|
1,710
|
|
|
|
|
|
|
1,974
|
|
|
|
|
1,600
|
|
|
Amortization of intangible assets(3) |
|
|
|
|
|
|
1,219
|
|
|
|
|
|
|
1,403
|
|
|
|
|
1,275
|
|
|
Restructuring charges and certain acquisition-related costs
|
|
|
|
|
|
|
131
|
|
|
|
|
|
|
589
|
|
|
|
|
184
|
|
|
Other deductions––net
|
|
|
|
|
|
|
145
|
|
|
|
|
|
|
1,639
|
|
|
|
|
688
|
|
|
Income from continuing operations before provision for taxes on
income
|
|
|
|
|
|
|
3,725
|
|
|
|
|
|
|
2,179
|
|
|
|
|
4,180
|
|
|
Provision for taxes on income
|
|
|
|
|
|
|
1,109
|
|
|
|
|
|
|
625
|
|
|
|
|
1,180
|
|
|
Income from continuing operations
|
|
|
|
|
|
|
2,616
|
|
|
|
|
|
|
1,554
|
|
|
|
|
3,000
|
|
|
Discontinued operations––net of tax
|
|
|
|
|
|
|
149
|
|
|
|
|
|
|
249
|
|
|
|
|
260
|
|
|
Net income before allocation to noncontrolling interests
|
|
|
|
|
|
|
2,765
|
|
|
|
|
|
|
1,803
|
|
|
|
|
3,260
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|
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
Net income attributable to Pfizer Inc.
|
|
|
|
$
|
|
|
2,750
|
|
|
|
$
|
|
|
1,794
|
|
|
|
$
|
3,253
|
|
|
Earnings per common share––basic:
|
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|
|
|
|
|
|
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|
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Income from continuing operations attributable to Pfizer Inc.
common shareholders
|
|
|
|
$
|
|
|
0.36
|
|
|
|
$
|
|
|
0.20
|
|
|
|
$
|
0.40
|
|
|
Discontinued operations––net of tax
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
0.03
|
|
|
|
|
0.03
|
|
|
Net income attributable to Pfizer Inc. common shareholders
|
|
|
|
$
|
|
|
0.38
|
|
|
|
$
|
|
|
0.24
|
|
|
|
$
|
0.44
|
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|
Earnings per common share––diluted:
|
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|
|
|
|
|
|
|
|
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Income from continuing operations attributable to Pfizer Inc.
common shareholders
|
|
|
|
$
|
|
|
0.36
|
|
|
|
$
|
|
|
0.20
|
|
|
|
$
|
0.40
|
|
|
Discontinued operations––net of tax
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
0.03
|
|
|
|
|
0.03
|
|
|
Net income attributable to Pfizer Inc. common shareholders
|
|
|
|
$
|
|
|
0.38
|
|
|
|
$
|
|
|
0.24
|
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted-average shares used to calculate earnings per common share:
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Basic
|
|
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|
|
|
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7,187
|
|
|
|
|
|
|
7,537
|
|
|
|
|
7,476
|
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|
Diluted
|
|
|
|
|
|
|
7,269
|
|
|
|
|
|
|
7,598
|
|
|
|
|
7,537
|
|
|
|
|
|
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EPS amounts may not add due to rounding.
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(1)
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These financial statements present the three months ended March 31,
2013, April 1, 2012 and July 1, 2012. Subsidiaries operating outside
the United States are included for the three months ended February
24, 2013, February 26, 2012 and May 27, 2012.
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On June 24, 2013, we completed the full disposition of our Animal
Health business (Zoetis). The operating results of this business are
reported as Discontinued operations––net of tax for all
periods presented.
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On November 30, 2012, we completed the sale of our Nutrition
business. The operating results of this business are reported as Discontinued
operations––net of tax for the three months ended April 1, 2012
and July 1, 2012.
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(2)
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Exclusive of amortization of intangible assets, except as discussed
in footnote (3) below.
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(3)
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Amortization expense related to finite-lived acquired intangible
assets that contribute to our ability to sell, manufacture,
research, market and distribute products, compounds and intellectual
property is included in Amortization of intangible assets as
these intangible assets benefit multiple business functions.
Amortization expense related to intangible assets that are
associated with a single function is included in Cost of sales,
Selling, informational and administrative expenses or Research
and development expenses, as appropriate.
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PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP
REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions
of dollars, except per common share data)
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Three Months Ended March 31, 2013
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|
Purchase
|
|
|
Acquisition-
|
|
|
|
|
|
Certain
|
|
|
|
|
|
|
|
GAAP
|
|
|
Accounting
|
|
|
Related
|
|
|
Discontinued
|
|
|
Significant
|
|
|
Non-GAAP
|
|
|
|
|
Reported(1)
|
|
|
Adjustments
|
|
|
Costs(2)
|
|
|
Operations
|
|
|
Items(3)
|
|
|
Adjusted(4)
|
|
Revenues
|
|
$
|
12,410
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
12,410
|
|
|
Cost of sales(5) |
|
|
2,263
|
|
|
|
5
|
|
|
|
(33
|
)
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
2,229
|
|
|
Selling, informational and administrative expenses(5) |
|
|
3,217
|
|
|
|
5
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(42
|
)
|
|
|
3,178
|
|
|
Research and development expenses(5) |
|
|
1,710
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(93
|
)
|
|
|
1,618
|
|
|
Amortization of intangible assets(6) |
|
|
1,219
|
|
|
|
(1,180
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
39
|
|
|
Restructuring charges and certain acquisition-related costs
|
|
|
131
|
|
|
|
-
|
|
|
|
(55
|
)
|
|
|
-
|
|
|
|
(76
|
)
|
|
|
-
|
|
|
Other deductions––net
|
|
|
145
|
|
|
|
(50
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
129
|
|
|
|
224
|
|
|
Income from continuing operations before provision for taxes on
income
|
|
|
3,725
|
|
|
|
1,219
|
|
|
|
90
|
|
|
|
-
|
|
|
|
88
|
|
|
|
5,122
|
|
|
Provision for taxes on income
|
|
|
1,109
|
|
|
|
334
|
|
|
|
26
|
|
|
|
-
|
|
|
|
(96
|
)
|
|
|
1,373
|
|
|
Income from continuing operations
|
|
|
2,616
|
|
|
|
885
|
|
|
|
64
|
|
|
|
-
|
|
|
|
184
|
|
|
|
3,749
|
|
|
Discontinued operations––net of tax
|
|
|
149
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(149
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to noncontrolling interests
|
|
|
15
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
9
|
|
|
Net income attributable to Pfizer Inc.
|
|
|
2,750
|
|
|
|
885
|
|
|
|
64
|
|
|
|
(143
|
)
|
|
|
184
|
|
|
|
3,740
|
|
|
Earnings per common share attributable to Pfizer Inc.––diluted
|
|
|
0.38
|
|
|
|
0.12
|
|
|
|
0.01
|
|
|
|
(0.02
|
)
|
|
|
0.03
|
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 1, 2012
|
|
|
|
|
GAAP
Reported(1)
|
|
|
Purchase
Accounting
Adjustments
|
|
|
Acquisition-
Related
Costs(2)
|
|
|
Discontinued
Operations
|
|
|
Certain
Significant
Items(3)
|
|
|
Non-GAAP
Adjusted(4)
|
|
Revenues
|
|
$
|
13,845
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
13,845
|
|
|
Cost of sales(5) |
|
|
2,383
|
|
|
|
(7
|
)
|
|
|
(76
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
2,300
|
|
|
Selling, informational and administrative expenses(5) |
|
|
3,678
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(16
|
)
|
|
|
3,664
|
|
|
Research and development expenses(5) |
|
|
1,974
|
|
|
|
1
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(302
|
)
|
|
|
1,668
|
|
|
Amortization of intangible assets(6) |
|
|
1,403
|
|
|
|
(1,339
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
64
|
|
|
Restructuring charges and certain acquisition-related costs
|
|
|
589
|
|
|
|
-
|
|
|
|
(91
|
)
|
|
|
-
|
|
|
|
(498
|
)
|
|
|
-
|
|
|
Other deductions––net
|
|
|
1,639
|
|
|
|
(91
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,244
|
)
|
|
|
304
|
|
|
Income from continuing operations before provision for taxes on
income
|
|
|
2,179
|
|
|
|
1,433
|
|
|
|
173
|
|
|
|
-
|
|
|
|
2,060
|
|
|
|
5,845
|
|
|
Provision for taxes on income
|
|
|
625
|
|
|
|
380
|
|
|
|
63
|
|
|
|
-
|
|
|
|
613
|
|
|
|
1,681
|
|
|
Income from continuing operations
|
|
|
1,554
|
|
|
|
1,053
|
|
|
|
110
|
|
|
|
-
|
|
|
|
1,447
|
|
|
|
4,164
|
|
|
Discontinued operations––net of tax
|
|
|
249
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(249
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to noncontrolling interests
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9
|
|
|
Net income attributable to Pfizer Inc.
|
|
|
1,794
|
|
|
|
1,053
|
|
|
|
110
|
|
|
|
(249
|
)
|
|
|
1,447
|
|
|
|
4,155
|
|
|
Earnings per common share attributable to Pfizer Inc.––diluted
|
|
|
0.24
|
|
|
|
0.14
|
|
|
|
0.01
|
|
|
|
(0.03
|
)
|
|
|
0.19
|
|
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 1, 2012
|
|
|
|
|
GAAP
Reported(1)
|
|
|
Purchase
Accounting
Adjustments
|
|
|
Acquisition-
Related
Costs(2) |
|
|
Discontinued
Operations
|
|
|
Certain
Significant
Items(3) |
|
|
Non-GAAP
Adjusted(4) |
|
Revenues
|
|
$
|
13,968
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
13,968
|
|
|
Cost of sales(5) |
|
|
2,376
|
|
|
|
(2
|
)
|
|
|
(54
|
)
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
2,293
|
|
|
Selling, informational and administrative expenses(5) |
|
|
3,665
|
|
|
|
2
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
3,648
|
|
|
Research and development expenses(5) |
|
|
1,600
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(37
|
)
|
|
|
1,565
|
|
|
Amortization of intangible assets(6) |
|
|
1,275
|
|
|
|
(1,214
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
61
|
|
|
Restructuring charges and certain acquisition-related costs
|
|
|
184
|
|
|
|
-
|
|
|
|
(170
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
Other deductions––net
|
|
|
688
|
|
|
|
59
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(579
|
)
|
|
|
168
|
|
|
Income from continuing operations before provision for taxes on
income
|
|
|
4,180
|
|
|
|
1,153
|
|
|
|
228
|
|
|
|
-
|
|
|
|
672
|
|
|
|
6,233
|
|
|
Provision for taxes on income
|
|
|
1,180
|
|
|
|
310
|
|
|
|
50
|
|
|
|
-
|
|
|
|
237
|
|
|
|
1,777
|
|
|
Income from continuing operations
|
|
|
3,000
|
|
|
|
843
|
|
|
|
178
|
|
|
|
-
|
|
|
|
435
|
|
|
|
4,456
|
|
|
Discontinued operations––net of tax
|
|
|
260
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(260
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Net income attributable to noncontrolling interests
|
|
|
7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7
|
|
|
Net income attributable to Pfizer Inc.
|
|
|
3,253
|
|
|
|
843
|
|
|
|
178
|
|
|
|
(260
|
)
|
|
|
435
|
|
|
|
4,449
|
|
|
Earnings per common share attributable to Pfizer Inc.––diluted
|
|
|
0.43
|
|
|
|
0.11
|
|
|
|
0.02
|
|
|
|
(0.03
|
)
|
|
|
0.06
|
|
|
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of tables for notes (1) through (6).
Certain
amounts may reflect rounding adjustments.
EPS amounts
may not add due to rounding.
|
|
|
|
|
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF
GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE
ITEMS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These financial statements present the three months ended March 31,
2013, April 1, 2012 and July 1, 2012. Subsidiaries operating outside
the United States are included for the three months ended February
24, 2013, February 26, 2012 and May 27, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On June 24, 2013, we completed the full disposition of our Animal
Health business (Zoetis). The operating results of this business are
reported as Discontinued operations––net of tax for all
periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On November 30, 2012, we completed the sale of our Nutrition
business. The operating results of this business are reported as Discontinued
operations––net of tax for the three months ended April 1, 2012
and July 1, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Acquisition-related costs include the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First-Quarter
|
|
Second-Quarter
|
|
|
|
|
|
|
(millions of dollars)
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration costs(a) |
|
$
|
|
36
|
|
|
$
|
|
95
|
|
|
$
|
105
|
|
|
|
|
|
|
|
Restructuring charges(a) |
|
|
|
19
|
|
|
|
|
(4
|
)
|
|
|
65
|
|
|
|
|
|
|
|
Additional depreciation––asset restructuring(b) |
|
|
|
35
|
|
|
|
|
82
|
|
|
|
58
|
|
|
|
|
|
|
|
Total acquisition-related costs––pre-tax
|
|
|
|
90
|
|
|
|
|
173
|
|
|
|
228
|
|
|
|
|
|
|
|
Income taxes(c) |
|
|
|
(26
|
)
|
|
|
|
(63
|
)
|
|
|
(50
|
)
|
|
|
|
|
|
|
Total acquisition-related costs––net of tax
|
|
$
|
|
64
|
|
|
$
|
|
110
|
|
|
$
|
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Integration costs represent external, incremental costs directly
related to integrating acquired businesses, and primarily include
expenditures for consulting and the integration of systems and
processes. Restructuring charges include employee termination costs,
asset impairments and other exit costs associated with business
combinations. All of these costs and charges are included in Restructuring
charges and certain acquisition-related costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Represents the impact of changes in the estimated useful lives of
assets involved in restructuring actions related to acquisitions.
Included in Cost of sales ($33 million) and Selling,
informational and administrative expenses ($2 million) for the
three months ended March 31, 2013. Included in Cost of sales
($76 million), Research and development expenses ($5
million) and Selling, informational and administrative expenses
($1 million) for the three months ended April 1, 2012. Included in Cost
of sales ($54 million) and Selling, informational and
administrative expenses ($4 million) for the three months
ended July 1, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Included in Provision for taxes on income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Certain significant items include the following:
|
|
|
|
|
|
First-Quarter
|
|
Second-Quarter
|
|
|
|
|
|
|
(millions of dollars)
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges(a) |
|
$
|
|
76
|
|
|
$
|
|
498
|
|
|
$
|
14
|
|
|
|
|
|
|
|
Implementation costs and additional depreciation––asset restructuring(b) |
|
|
|
139
|
|
|
|
|
318
|
|
|
|
56
|
|
|
|
|
|
|
|
Gain associated with the transfer of certain product rights to an
equity-method investment(c) |
|
|
|
(490
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
Certain legal matters(d) |
|
|
|
(87
|
)
|
|
|
|
775
|
|
|
|
483
|
|
|
|
|
|
|
|
Certain asset impairment charges(e) |
|
|
|
394
|
|
|
|
|
412
|
|
|
|
77
|
|
|
|
|
|
|
|
Costs associated with the Zoetis IPO(f) |
|
|
|
18
|
|
|
|
|
32
|
|
|
|
29
|
|
|
|
|
|
|
|
Other
|
|
|
|
38
|
|
|
|
|
25
|
|
|
|
13
|
|
|
|
|
|
|
|
Certain significant items––pre-tax
|
|
|
|
88
|
|
|
|
|
2,060
|
|
|
|
672
|
|
|
|
|
|
|
|
Income taxes(g) |
|
|
|
96
|
|
|
|
|
(613
|
)
|
|
|
(237
|
)
|
|
|
|
|
|
|
Certain significant items––net of tax
|
|
$
|
|
184
|
|
|
$
|
|
1,447
|
|
|
$
|
435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Primarily relates to our cost-reduction and productivity
initiatives. Included in Restructuring charges and certain
acquisition-related costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Primarily relates to our cost-reduction and productivity
initiatives. Included in Research and development expenses
($93 million), Selling, informational and administrative expenses ($40
million) and Cost of sales ($6 million) for the three months
ended March 31, 2013. Included in Research and development
expenses ($302 million) and Selling, informational and
administrative expenses ($16 million) for the three months ended
April 1, 2012. Included in Cost of sales ($4 million), Selling,
informational and administrative expenses ($15 million) and Research
and development expenses ($37 million) for the three months
ended July 1, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
Included in Other deductions––net. Represents the gain
associated with the transfer of certain product rights to Pfizer's
49%-owned equity-method investment in China.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
Included in Other deductions––net. In first-quarter 2013,
primarily includes an $80 million insurance recovery related to a
certain litigation matter. In first-quarter 2012, primarily relates
to a $450 million settlement of a lawsuit by Brigham Young
University related to Celebrex and charges related to
hormone-replacement therapy litigation. In second-quarter 2012,
primarily includes charges related to hormone-replacement therapy
litigation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e)
|
Included in Other deductions––net. In first-quarter 2013,
significantly relates to developed technology, for use in the
development of bone and cartilage and acquired in connection with
our acquisition of Wyeth. In first-quarter 2012, primarily relates
to an in-process research and development intangible asset
compound targeting autoimmune diseases and acquired in connection
with our acquisition of Wyeth, and certain other intangible asset
impairments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f)
|
Included in Other deductions––net. Costs incurred in
connection with the initial public offering of an approximate 19.8%
ownership interest in Zoetis. Includes expenditures for banking,
legal, accounting and similar services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
Included in Provision for taxes on income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Non-GAAP Adjusted income and its components and Non-GAAP Adjusted
diluted EPS are not, and should not be viewed as, substitutes for
U.S. GAAP net income and its components and diluted EPS. Despite the
importance of these measures to management in goal setting and
performance measurement, Non-GAAP Adjusted income and its components
and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures
that have no standardized meaning prescribed by U.S. GAAP and,
therefore, have limits in their usefulness to investors. Because of
the non-standardized definitions, Non-GAAP Adjusted income and its
components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net
income and its components and diluted EPS) may not be comparable to
the calculation of similar measures of other companies. Non-GAAP
Adjusted income and its components and Non-GAAP Adjusted diluted EPS
are presented solely to permit investors to more fully understand
how management assesses performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Exclusive of amortization of intangible assets, except as discussed
in footnote (6) below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Amortization expense related to finite-lived acquired intangible
assets that contribute to our ability to sell, manufacture,
research, market and distribute products, compounds and intellectual
property is included in Amortization of intangible assets as
these intangible assets benefit multiple business functions.
Amortization expense related to intangible assets that are
associated with a single function is included in Cost of sales,
Selling, informational and administrative expenses or Research
and development expenses, as appropriate.
|
Copyright Business Wire 2013