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Share-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2012
Schedule of Share-based Compensation Expense and Associated Tax Benefit
The following table provides the components of share-based compensation expense and the associated tax benefit:
 
 
Year Ended December 31,
(MILLIONS OF DOLLARS)
 
2012

 
2011

 
2010

Restricted stock units
 
$
235

 
$
228

 
$
211

Stock options
 
157

 
166

 
150

Total shareholder return units
 
35

 
17

 
28

Performance share awards
 
35

 
3

 
14

Portfolio performance shares
 
14

 
—

 
—

Directors’ compensation and other
 
5

 
5

 
2

Share-based payment expense
 
481

 
419

 
405

Tax benefit for share-based compensation expense
 
(149
)
 
(139
)
 
(129
)
Share-based payment expense, net of tax
 
$
332

 
$
280

 
$
276
Stock Options [Member]
  
Schedule of Valuation Assumptions

The following table provides the weighted-average assumptions used in the valuation of stock options:
 
 
Year Ended December 31,
  
 
2012

 
2011

 
2010

Expected dividend yield(a)
 
4.10
%
 
4.14
%
 
4.00
%
Risk-free interest rate(b)
 
1.28
%
 
2.59
%
 
2.87
%
Expected stock price volatility(c)
 
23.78
%
 
25.55
%
 
26.85
%
Expected term(d) (years)
 
6.50

 
6.25

 
6.25

(a) 
Determined using a constant dividend yield during the expected term of the option.
(b) 
Determined using the interpolated yield on U.S. Treasury zero-coupon issues.
(c) 
Determined using implied volatility, after consideration of historical volatility.
(d) 
Determined using historical exercise and post-vesting termination patterns.
Summary of Stock Option Activity Data
The following table summarizes data related to all stock option activity:

 
Year Ended/As of
December 31,
(MILLIONS OF DOLLARS, EXCEPT PER STOCK OPTION AMOUNTS)
 
2012

 
2011

 
2010

Weighted-average grant date fair value per stock option
 
$
2.79

 
$
3.15

 
$
3.25

Aggregate intrinsic value on exercise
 
$
263

 
$
32

 
$
5

Cash received upon exercise
 
$
568

 
$
153

 
$
16

Tax benefits realized related to exercise
 
$
81

 
$
10

 
$
1

Total compensation cost related to nonvested stock options not yet recognized, pre-tax

 
$
148

 
$
177

 
$
178

Weighted-average period over which stock option compensation cost is expected to be recognized (years)
 
1.2

 
1.3

 
1.3
Schedule of stock option activity
The following table summarizes all stock option activity during 2012:
 
 
Shares
(Thousands)

 
Weighted-Average
Exercise Price
Per Share

 
Weighted-Average
Remaining
Contractual Term
(Years)
 
Aggregate
Intrinsic
Value(a)
(Millions)

Outstanding, December 31, 2011
 
429,553

 
$
25.31

 
 
 
 
Granted
 
57,919

 
21.04

 
 
 
 
Exercised
 
(37,160
)
 
15.98

 
 
 
 
Forfeited
 
(6,881
)
 
19.12

 
 
 
 
Canceled
 
(60,476
)
 
35.96

 
 
 
 
Outstanding, December 31, 2012
 
382,955

 
$
24.00

 
5.0
 
$
1,230

Vested and expected to vest(b), December 31, 2012
 
375,102

 
24.10

 
4.9
 
$
1,183

Exercisable, December 31, 2012
 
225,829

 
$
27.32

 
2.8
 
$
308

(a) 
Market price of underlying Pfizer common stock less exercise price.
(b) 
The number of options expected to vest takes into account an estimate of expected forfeitures.
Restricted Stock Units [Member]
  
Summary of Stock Option Activity Data
The following table provides data related to all RSU activity:
(MILLIONS OF DOLLARS)
 
Year Ended December 31,
2012

 
2011

 
2010

Total fair value of shares vested
 
$
348

 
$
256

 
$
222

Total compensation cost related to nonvested RSU awards not yet recognized, pre-tax
 
$
258

 
$
264

 
$
230

Weighted-average period over which RSU cost is expected to be recognized (years)
 
1.2

 
1.3

 
1.4
Schedule of stock option activity
The following table summarizes all RSU activity during 2012:
 
 
Shares 
(Thousands)

 
Weighted-
Average
Grant Date
Fair Value
Per Share

Nonvested, December 31, 2011
 
41,940

 
$
17.08

Granted
 
13,232

 
21.05

Vested
 
(15,464
)
 
15.09

Reinvested dividend equivalents
 
1,585

 
22.95

Forfeited
 
(3,433
)
 
19.17

Nonvested, December 31, 2012
 
37,860

 
$
19.34
Performance Share Awards [Member]
  
Summary of Stock Option Activity Data
The following table provides data related to all PPS activity:
(MILLIONS OF DOLLARS)
 
Year Ended December 31,
2012

 
2011

 
2010

Total fair value of shares vested
 
$
—

 
$
—

 
$
—

Total compensation cost related to nonvested PPS awards not yet recognized, pre-tax
 
$
33

 
$
—

 
$
—

Weighted-average period over which nonvested PPS cost is expected to be recognized (years)
 
2.2

 
—

 
—
Schedule of stock option activity
The following table summarizes all PPS activity during 2012, with the shares representing the maximum award that could be achieved:
 
 
Shares 
(Thousands)

 
Weighted-
Average
Intrinsic
Value
Per Share

Nonvested, December 31, 2011
 
—

 
$
—

Granted
 
3,964

 
21.03

Vested
 
(2
)
 
22.42

Forfeited
 
(220
)
 
23.18

Nonvested, December 31, 2012
 
3,742

 
$
25.08