Revenue Recognition Accounting Policy
Pfizer records revenues from product sales when the goods are shipped and title passes to the customer. At the time of sale, Pfizer also records estimates for a variety of sales deductions, such as sales rebates, discounts and incentives, and product returns. When Pfizer cannot reasonably estimate the amount of future product returns and/or other sales deductions, Pfizer records revenues when the risk of product return and/or additional sales deductions have been substantially eliminated. Pfizer records sales of certain of vaccines to the U.S. government as part of the Pediatric Vaccine Stockpile program; these rules require that for fixed commitments made by the U.S. government, Pfizer records revenues when risk of ownership for the completed product has been passed to the U.S. government. There are no specific performance obligations associated with products sold under this program.
Source: Pfizer Inc., Annual Report
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