1Our 2010 guidance does not assume the completion of any business-development transactions not completed as of December 31, 2009. It excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of December 31, 2009, as well as the potential impact of health care reform in the U.S. In addition, this guidance is based on approximate foreign currency exchange rates in effect in late January 2010.
2"Reported net income" is defined as net income attributable to Pfizer Inc. in accordance with U.S. generally accepted accounting principles (GAAP). "Reported diluted earnings per share" is defined as reported diluted earnings per share attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.
3 "Adjusted income" and its components and "Adjusted diluted earnings per share" are defined as "reported net income"2 and its components and "reported diluted earnings per share"2 excluding purchase-accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. "Adjusted R&D Expenses" is an income statement line item prepared on the same basis and, therefore, a component of the overall adjusted income measure. As described in our Form 10-K for the fiscal year ended December 31, 2009, we use adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. A reconciliation of 2009 adjusted income and its components and adjusted diluted earnings per share to "reported net income"2 and its components and "reported diluted earnings per share"2 is provided in our Form 8-K filed on February 3, 2010. Additional information regarding our 2009 financial performance can be found in our Form 10-K for the fiscal year ended December 31, 2009. The adjusted income and its components and adjusted diluted earnings per share measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted earnings per share.