Acquisitions, Licensing Agreements, Collaborative Arrangements, Equity-Method Investments and Cost-Method Investment (Tables)

9 Months Ended

Sep. 27, 2015

Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract]

Schedule of Amounts Recognized for Assets Acquired and Liabilities Assumed

The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date. The estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as we obtain the information necessary to complete the analyses. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date.

(MILLIONS OF DOLLARS)	Amounts Recognized as of Acquisition Date (Provisional)
Working capital, excluding inventories(a)	$	271
Inventories	1,894
Property, plant and equipment	2,338
Identifiable intangible assets, excluding in-process research and development(b)	10,030
In-process research and development	1,120
Other noncurrent assets	311
Long-term debt	(1,928		)
Benefit obligations	(117		)
Net income tax accounts(c)	(3,645		)
Other noncurrent liabilities	(37		)
Total identifiable net assets	10,237
Goodwill	5,790
Net assets acquired/total consideration transferred	$	16,027

^(a)  Includes cash and cash equivalents, short-term investments, accounts receivable, other current assets, assets held for sale, accounts payable and other current liabilities.

^(b)  Comprised of finite-lived developed technology rights with a weighted-average life of approximately 13 years ($9.4 billion) and other finite-lived identifiable intangible assets with a weighted-average life of approximately 18 years ($590 million).

^(c)  As of the acquisition date, included in Current deferred tax assets and other current tax assets ($218 million), Noncurrent deferred tax liabilities ($3.8 billion) and Other taxes payable ($114 million, including accrued interest of $5 million).

Summary of Pro Forma Information

Actual and Pro Forma Impact of Acquisition—The following table presents information for Hospira’s operations that are included in Pfizer’s condensed consolidated statements of income beginning from the acquisition date, September 3, 2015 (see Note 1A):

	Three Months Ended			Nine Months Ended
(MILLIONS OF DOLLARS)	September 27, 2015			September 27, 2015
Revenues	$	330		$	330
Net loss attributable to Pfizer Inc. common shareholders(a)	(265		)	(265		)

^(a)  Includes purchase accounting charges related to (i) the preliminary fair value adjustment for acquisition-date inventory estimated to have been sold ($77 million pre-tax in both the third quarter and first nine months of 2015); (ii) amortization expense related to the preliminary fair value of identifiable intangible assets acquired from Hospira ($57 million pre-tax in both the third quarter and first nine months of 2015); (iii) depreciation expense related to the preliminary fair value adjustment of fixed assets acquired from Hospira ($8 million pre-tax both in the third quarter and first nine months of 2015); and (iv) amortization expense related to the fair value adjustment of long-term debt acquired from Hospira ($3 million income pre-tax both in the third quarter and first nine months of 2015), as well as restructuring and integration costs ($413 million pre-tax in both the third quarter and first nine months of 2015).

The following table provides supplemental pro forma information as if the acquisition of Hospira had occurred on January 1, 2014:

	Unaudited Supplemental Pro Forma Consolidated Results
	Three Months Ended				Nine Months Ended
(MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA)	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Revenues	$	12,957	$	13,512	$	38,034	$	39,824
Net income attributable to Pfizer Inc. common shareholders	2,471		2,679		7,432		6,966
Diluted earnings per share attributable to Pfizer Inc. common shareholders	0.40		0.42		1.19		1.08