Pfizer New Zealand Limited Financial statements for the year ended 30 November 2015 Pfizer New Zealand Limited Financial statements for the year ended 30 November 2015 Table of contents Directors' report Auditors' report Financial statements Statement of pro?t or loss and other comprehensive income Statement of ?nancial position Statement of changes in equity Statement of cash flows Notes to the ?nancial statements Pfizer New Zealand Limited Directors' report 30 November 2015 Directors' report The Board of Directors have pleasure in presenting the annual report of P?zer New Zealand Limited, incorporating the ?nancial statements and the auditors' report, for the year ended 30 November 2015. The directors are responsible for ensuring that the ?nancial statements give a true and fair view of the ?nancial position of the Company as at 30 November 2015 and their ?nancial performance for the year ended on that date. The directors consider that the ?nancial statements of the Company have been prepared using appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates and that all relevant ?nancial reporting and accounting standards have been followed. The directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the determination of the ?nancial position of the Company and facilitate compliance of the ?nancial statements with the Financial Reporting Act 2013. The directors are pleased to present the ?nancial statements of P?zer New Zealand Limited for the year ended 30 November 2015. For and on behalf of the Board of Directors Anita Thorpe Director Director 21 April 2016 21 April 2016 Independent auditOr?s report To the shareholder of P?zer New Zealand Limited We have audited the accompanying ?nancial statements of P?zer New Zealand Limited (?the company") on pages 5 to 21. The ?nancial statements comprise the statement of ?nancial position as at 30 November 2015, the statements of comprehensive income, changes in equity and cash ?ows for the year then ended, and a summary of signi?cant accounting policies and other explanatory information. This report is made solely to the shareholder as a body. Our audit work has been undertaken so that we might state to the company?s shareholder those matters we are required to state to them in the auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company?s shareholder as a body, for our audit work, this report or any of the opinions we have formed. Directors' responsibility for the ?nancial statements . The directors are responsible on behalf of the company for the preparation and fair presentation of the ?nancial statements in accordance with generally accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime) and for such internal control as the directors determine is necessary to enable the preparation of ?nancial statements that are free from material misstatement whether due to ?aud 0r error. Auditor?s responsibility Our responsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor?s judgement, including the assessment of the risks of material misstatement of the ?nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company?s preparation and fair presentation of the ?nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative Liability limited by a scheme approved under lnternational"), a Swiss entity. Professional Standards Legislation. as?: Our ?rm has also provided other services to the company in relation to taxation. Subject to certain restrictions, partners and employees of our ?rm may also deal with the company on normal terms within the ordinary course of trading activities of the business of the company. These matters have not impaired our independence as auditor of the company. The ?rm has no other relationship with, or interest in, the company. Opinion In our opinion, the ?nancial statements on pages 5 to 21 comply with generally accepted accounting practice in New Zealand and present fairly, in all material respects, the ?nancial position of P?zer New Zealand Limited as at 30 November 2015 and its ?nancial performance and cash ?ows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime. KPMG 21 April 2016 Sydney Revenue Cost of sales Gross profit Distribution expenses Marketing and ?eld selling expenses Administrative expenses Research and development expenses Advertising and promotion expenses Management fee expenses Other expenses Operating profit before ?nancing costs Financial expenses Financial income Net financing income Profit before income tax Income tax expense Profit for the year Other comprehensive income Total comprehensive income for the year Attributable to: Owners of the company Pfizer New Zealand Limited Statement of profit or loss and other comprehensive income For the year ended 30 November 2015 201 5 2014 Notes $'000 44,861 91 .273 (34.910) (69.445) 9.951 21 .828 (1,090) (2.116) (1,996) (8,367) (1 ,741) (3,549) (326) (66) (565) (4.462) (2,002) (1,900) (730) 315 1 .501 1 .683 (177) (25.341 2,51 8 5 (585) (771 1 .256 1 .747 1 .256 1 .747 1 .256 1 .747 The notes on pages 10 to 21 are an integral part of these ?nancial statements. -5- ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Current tax asset Total current assets Non-current assets Property, plant and equipment Intangible assets Deferred tax assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Current tax liabilities Sundry creditors and accruals Total current liabilities Total liabilities Net assets EQUITY Contributed equity Reserves Retained earnings Total equity The notes on pages 10 to 21 are an integral part of these ?nancial statements. Notes 1O 11 12 13 14 Pfizer New Zealand Limited Statement of financial position As at 30 November 2015 2015 2014 $'000 $'000 1,378 2,772 34,865 35,878 9,758 20,014 - 342 46.001 59.006 316 513 11,099 1 1 ,099 917 1.109 12.332 12.721 58.333 71 .727 28,562 17,1 18 3 1.897 5.642 30.462 22.760 30.462 22.760 27.871 48.967 23,466 45,922 763 659 3.642 2.386 27.871 48.967 Balance at 1 December 2013 Pro?t for the year, being total comprehensive income Total comprehensive income for the year Share based payment reserve Dividends paid to equity holders Balance as at 30 November 2014 Balance as at 1 December 2014 Pro?t for the year, being total comprehensive income Total comprehensive income for the year Return of capital Share based payment reserve Balance as at 30 November 2015 Pfizer New Zealand Limited Statement of changes in equity For the year ended 30 November 2015 Attributable to equity holders of Pfizer New Zealand Limited Share Based Contributed Payments Retained equity Reserve earnings Total equity $'000 $?000 $?000 $?000 45,922 496 30.639 77,057 - 1 .747 1 .747 - 1 .747 1 .747 163 - 163 - - (30.000) (30.000) 45.922 659 2.386 48.967 45.922 659 2.386 48.967 - - 1 .256 1 .256 - 1 .256 1 .256 (22.456) - (22,456) 1 04 1 04 23.466 763 3.642 27.871 The notes on pages 10 to 21 are an integral part of these ?nancial statements. Cash flows from operating activities Cash receipts from customers Cash paid to suppliers, employees and others Interest received Other income Interest paid Income taxes paid/ (refund) Net cash inflowl (outflow) from operating activities Cash flows from investing activities Proceeds from sale of assets and liabilities to P?zer PFE New Zealand Cash transferred as part of the sale to P?zer PFE New Zealand Acquisition of property, plant and equipment Net cash inflowl (outflow) from investing activities Cash flows from financing activities Return of capital to P?zer Global Holdings B.V. Dividends paid to shareholders Net cash (outflow) from financing activities Net increase] (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the ?nancial year Cash and cash equivalents at end of year The notes on pages 10 to 21 are an integral part of these ?nancial statements. Pfizer New Zealand Limited Statement of cash flows For the year ended 30 November 2015 2015 2014 Notes $?000 41 ,086 142,409 (28,660) (113,76274) (25) (347) 406 15 - 12.695 30,365 1 22,455 - (14,085) - (3) (583) 8,367 (583) 14 (22,456) - - (30.000) (22.456) (30,000) (1,394) (218) 2.772 2.990 6 1 .378 2,772 Contents of the notes to the financial statements General information Signi?cant accounting policies Expenses Net ?nance income and expenses Income taxation Cash and cash equivalents Trade and other receivables Inventories Current tax assets Property, plant and equipment Intangible assets Trade and other payables Current tax liabilities Contributed equity Reconciliation of cash ?ows from operating activities Financial instruments by category Director and executive disclosures Commitments Contingencies Related party transactions Events occurring after the reporting date Pfizer New Zealand Limited Notes to the financial statements Pfizer New Zealand Limited Notes to the financial statements (continued) 1 General information P?zer New Zealand Limited (The "Company") is a limited liability company incorporated and domiciled in New Zealand. The registered of?ce of the company is in Auckland. P?zer New Zealand Limited is a wholly owned subsidiary of P?zer Global Holdings B.V.incorporated in Netherlands, whose ultimate parent is P?zer Inc, a Group incorporated in the United States of America. The principle activities of the Company during the course of the ?nancial year were the sales and marketing of a range of pharmaceutical and consumer health products. On 1 December 2014, the Company sold the Innovative Products, Vaccines, Oncology and Consumer Businesses to P?zer PFE New Zealand for $22,455,325. The Company then distributed these proceeds in full to its Holding Company by way of a return of capital. On 3 February 2015, the Company?s subsidiary, Catapult Systems Limited was liquidated. 2 Summary of signi?cant accounting policies These ?nancial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand. They comply with the New Zealand Equivalents to International Financial Reporting Standards-Reduced Disclosure Regime IFRS and other applicable Financial Reporting Standards, as appropriate for pro?t-oriented en??es. Basis of preparation The ?nancial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice They comply with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime IFRS and other applicable Financial Reporting Standards, as appropriate for Tier 2 for?pro?t entities that qualify for and elect to apply reduced disclosure reporting concessions. The entity has elected to report in accordance with Tier 2 For-Pro?t Accounting Standards on the basis that it does not have public accountability and is not a large for-pro?t public sector entity. These are P?zer New Zealand Limited?s ?rst ?nancial statements prepared in accordance with NZ IF RS RDR and NZ IFRS 1 First?time Adoption of New Zealand Equivalents to International Financial Reporting Standards has been applied. There has been no impact on reported equity of the company as a result of the transition to NZ IFRS. The ?nancial statements were authorised for issue by the Board of Directors on 21 April 2016. Foreign currency translation Functional and presentation currency Items included in the ?nancial statements of each of the company's operations are measured using the currency of the primary economic environment in which the entity operates (?the functional currency?). The ?nancial statements are presented in New Zealand dollars, which is P?zer New Zealand Limited?s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year?end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying cash ?ow hedges. Goodwill and fair value adjustments arising on the acquisition of a foreign entities are treated as assets and liabilities of the foreign entities and translated at the closing rate. -10- Pfizer New Zealand Limited Notes to the financial statements (continued) 2 Summary of significant accounting policies (continued) Revenue recognition Goods sold and services rendered Revenue from the sale of goods is recognised in the statement of pro?t or loss and other comprehensive income when the signi?cant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are signi?cant uncertainties regarding recovery of the consideration due, the costs incurred or to be incurred cannot be measured reliably, there is a risk of return of goods or there is continuing management involvement with the goods. (ii) Interest revenue lnterest revenue is recognised as it accrues, taking into account the effective yield on the ?nancial asset. Income tax The income tax expense recognised for the year is calculated using the taxes payable method and is determined using tax rules. Under the taxes payable method, income tax expense in respect of the current period is equal to the income tax payable for the same period, adjusted for any difference between estimated and actual tax payable in prior periods. Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and service tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, taxation authorities is included as a currently asset or liability in the statement of ?nancial position. Leases The Company is the lessee Leases in which the Company has substantially all the risks and rewards of ownership are classi?ed as ?nance leases. Finance leases are capitalised at the lease?s inception at the lower of the fair value of the leased asset and the present value of the minimum lease payments. Each lease payment is allocated between the liability and ?nance charges so as to achieve a constant rate on the ?nance balance outstanding. The corresponding rental obligations, net of ?nance charges are included in other long term payables. The interest element of the ?nance cost is charged to the pro?t and loss component of the statement of pro?t or loss and other comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under ?nance leases is depreciated over the shorter of the asset?s useful life and the lease term. Leases in which a signi?cant portion of the risks and rewards of ownership are retained by the lessor are classi?ed as operating leases. Payments made under an operating lease (net of any incentives received from the lessor) are charged to the pro?t and loss component of the statement of pro?t or loss and other comprehensive income on a straight?line basis over the period of the lease. -11- Pfizer New Zealand Limited Notes to the financial statements (continued) 2 Summary of significant accounting policies (continued) (9) Impairment of assets The carrying amounts of the Company's assets other than inventories are reviewed at each'balance date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated. If the estimated recoverable amount of an asset is less than its carrying amount, the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the statement of pro?t or loss and other comprehensive income. Estimated recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. Value in use is determined by estimating future cash flows from the use and ultimate disposal of the asset and discounting these to their present value using a pre?tax discount rate that re?ects current market rates and the risks speci?c to the asset. For an asset that does not generate largely independent cash in?ows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss in respect of goodwill is not reversed. Other impairment losses are reversed when there is a change in the estimates used to determine the recoverable amount. An impairment loss on an investment in shares classi?ed as available-for-sale or on property carried at fair value is reversed through the relevant reserve. All other impairment losses are reversed through the statement of pro?t or loss and other comprehensive income. Non-derivative financial instruments Non-derivative ?nancial instruments comprise investments in shares, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non derivative ?nancial instruments are recognised initially at fair value plus, for instruments not at fair value through pro?t or loss, any directly attributable transactions costs. Subsequent to initial recognition non derivative ?nancial instruments are measured as described below. A ?nancial instrument is recognised if the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Company's contractual rights to the cash ?ows from the ?nancial assets expire or if the Company transfers the ?nancial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of ?nancial assets are accounted for at trade date, the date that the Company commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Company's obligations speci?ed in the contract expire or are discharged or cancelled. Subsequent to initial recognition, other non derivative ?nancial instruments are measured at amortised cost using the effective interest method, less any impairment losses. Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The cost of inventories is based on the ?rst-in ?rst?out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Property, plant and equipment All property, plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains/losses on qualifying cash ?ow hedges of foreign currency purchases of property, plant and equipment. -12- Pfizer New Zealand Limited Notes to the financial statements (continued) 2 Summary of significant accounting policies (continued) All other repairs and maintenance are charged to the statement of pro?t or loss and other comprehensive income during the ?nancial period in which they are incurred. Depreciation is calculated on a straight line basis to allocate the cost of an asset, less any residual value over its useful life. The rates are as follows: Plant and equipment 10-20 years - Furniture and computer equipment 3?20 years - Leasehold improvements Over the term of the lease An asset?s carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. . Gains and losses on disposals are determined by?comparing proceeds with carrying amount. These are included in the pro?t and loss component of the statement of pro?t or loss and other comprehensive income. intangible assets and goodwill Goodwill Goodwill is reviewed at each balance sheet date to determine whether there is any objective evidence of impairment. An impairment loss is recognised whenever the carrying amount of goodwill exceeds its recoverable amount. Impairment losses reduce the carrying amount of goodwill and is recognised in the balance sheet. The recoverable amount of goodwill is based on discounted cash ?ows. All business combinations are accounted for by applying the purchase method. Goodwill represents amounts arising on acquisition of a business and is the difference between the cost of the acquisition and the fair value of the net identi?able assets acquired. Acquisitions prior to 1 January 2004 As part of its transition to NZ the Company elected to restate only those business combinations that occurred after 1 December 2007 (the entity?s date of transition to NZ For acquisitions prior to 1 December 2007 goodwill is included on the basis of the amount recorded under New Zealand?s previous GAAP on transition. Acquisitions on or after 1 January 2004 For acquisitions on or after 1 January 2004, goodwill represents the excess of cost of the acquisition over the fair value of the identi?able assets, liabilities and contingent liabilities acquired. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is not amortised but is tested annually for impairment. Provisions Provisions for legal claims, service warranties and rental obligations are recognised when the Company has a present legal or constructive obligation as a result of past events; it is more likely than not that an out?ow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an out?ow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an out?ow with respect to any one item included in the same class of obligations may be small. -13- Pfizer New Zealand Limited Notes to the financial statements (continued) 2 Summary of significant accounting policies (continued) Employee benefits Share?based payment transactions The share option program allows certain Company employees to acquire shares of the ultimate parent, P?zer Inc. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The amount recognised as an expense is adjusted to re?ect the actual number of share options expected to vest. Share capital All ordinary shares have equal voting rights and share equally in dividends and surplus on winding up. (0) Dividends A provision for dividends payable is recognised in the reporting period in which the dividends are declared, for the entire undistributed amount, regardless of the extent to which they will be paid in cash. Common control transactions Common control business combinations are accounted for using book value accounting. -14- 3 Expenses Depreciation and amortisation Leasehold land and buildings Plant and equipment Total depreciation Employee benefit expense Salaries and wages including restructuring costs Auditors' fees Pfizer New Zealand Limited Notes to the financial statements (continued) 2015 2014 $'000 200 - - 125 200 125 3.563 5,378 During the year the following fees were paid or payable for services provided by the auditor of the company, its related practices and unrelated audit ?rms: Audit and review of ?nancial reports and other audit work Tax compliance services, including review of company income tax returns Total remuneration for audit services There have been no donations paid by the entity during the year. (2014znil) 4 Net finance income and expenses Foreign exchange loss Interest expense Foreign exchange gain Interest income Net financing income 5 Income taxation Taxation expense Pro?t before tax Income tax 28% (2014:28%) Expenses not deductible for tax purposes Over provision in prior years Tax expense -15- 100 100 59 41 159 141 2015 2014 $000 $000 (3) - (174) (25) (177) (25) - 34 517 826 517 860 340 835 2015 2014 $000 $000 1.841 2J518 (515) (705) (48) (66) 122) - 1585) (771) Deferred tax Deferred tax assets I (liabilities) are attributable to: At 1 December 2013 Recognised in pro?t At 30 November 2014 At 1 December 2014 Recognised in pro?t Deferred tax asset sold to P?zer PFE New Zealand At 30 November 2015 The analysis of deferred tax assets is as follows: Deferred tax asset to be recovered after more than 12 months Deferred tax asset to be recovered within 12 months Total 6 Cash and cash equivalents Cash at bank and in hand 7 Trade and other receivables Current Trade receivables Trade and other receivables due from related parties Provision for doubtful receivables Prepayments and other receivables Total trade and other receivables 8 Inventories Finished goods Stock in transit Less: provision for stock obsolescence Total inventories -16- Pfizer New Zealand Limited Notes to the financial statements (continued) Provisions Fixed assets Total $'000 $?000 $?000 1,546 101 1 ,647 (478) (60) (538) 1,068 41 1 ,109 1,068 41 1,109 44 63 1 07 (292) (7) (299) 820 97 917 2015 2014 $?000 $'000 111 - 806 1 ,109 917 1.109 2015 2014 $'000 $'000 1.378 2.772 201 5 2014 $?000 $?000 4,996 17,520 30,091 18,878 (257) (578) 35 58 34.865 35.878 2015 2014 $?000 $?000 9,363 20,841 2,248 1 ,221 (1.853) (2,048) 9.758 20,014 Pfizer New Zealand Limited Notes to the financial statements (continued) 9 Current tax assets 2015 2014 $?000 $?000 Income tax receivable - 342 10 Property, plant and equipment Leasehold land and Plant and buildings equipment Total $?000 $?000 $?000 At 30 November 2014 Cost 435 319 754 - Accumulated depreciation (110) (131) (241) Net book amount 325 188 513 At 30 November 2015 - Cost 437 206 643 Accumulated depreciation (211) (116) (323 Net book amount 226 90 316 11' Intangible assets Goodwill Total $?000 $?000 At 30 November 2014 Cost 17,260 17,260 Accumulated amortisation and impairment (6.161) (6,161) Net book amount 11.099 11.099 At 30 November 2015 Cost 17,260 17,260 Accumulated amortisation and impairment (6.161) (6.1 61) Net book amount 11.099 11.099 Goodwill on acquisition relates to the acquisition of Pharmacia Limited (NZ) in September 2003 and the amalgamation of Warner Lambert Limited (NZ) in November 2004. Impairment for goodwill P?zer New Zealand's impairment test for goodwill and inde?nite life intangible assets was based on the following assumptions: - Future revenue streams were determined with respect to historical unit growth rates and having regard to future anticipated prices changes; and - Cash flows were projected based on the most accurate forecasts and budget information available; and - A discount rate of 8% applied to impairment test for goodwill. -17- 12 Trade and other payables Trade payables Accrued expenses Trade and other payables to related parties Total trade and other payables 13 Current tax liabilities Income tax liabilities 14 Contributed equity Share capital Ordinary shares - Value Pfizer New Zealand Limited Notes to the financial statements (continued) 2015 2014 $'000 $'000 426 3,269 220 1 ,149 27,916 12.700 28.562 17.1 18 2015 2014 $?000 $000 3 2015 2014 $'000 $'000 23.466 45.922 All ordinary shares rank equally with one vote attached to each fully paid ordinary share. Ordinary shares do not have a par value. The Company reduced $22,456,000 in share capital on 1 December 2014 by way of an equity capital reduction. The number of shares held was 10,226,632 (2014: 20,011,940). Dividends No dividends were paid during the current year by the Company (2014: $30,000,000). 15 Reconciliation of cash flows from operating activities Pro?t for the year Depreciation and amortization Equity settled share based payment transactions Income tax expense Decrease/ (increase) in trade and other receivables Decrease/ (increase) in inventories Decrease/ (increase) in prepayments lncrease/ (decrease) in trade and other payables Increase/ (decrease) in employee bene?ts provision lncome taxes (paid)/ refund Net cash inflowl (outflow) from operating activities _18_ 2015 2014 $000 $000 1,256 1,747 200 126 104 163 585 771 771 38,481 10,255 (1,354) (32) 1 1 1 712 (9,099) (809) (987) (347) 406 12,695 30.365 Pfizer New Zealand Limited Notes to the financial statements (continued) 16 Financial instruments by category 2015 . 2014 $?000 $'000 Financial assets as per the balance sheet Cash and cash equivalents 1,378 2,772 Trade and other receivables 35.087 36,398 Total 36.465 39.170 Financial liabilities as per the balance sheet Trade and other payables 28.342 15,969 Total 28.342 15.969 17 Director and executive disclosures The following persons were executive directors of P?zer New Zealand Limited during the ?nancial year: Anita Thorpe, Director since 22 April 1996 Genevieve Small, Director since 06 February 2004 David Gallagher, Director since 22 April 2013 Melissa McGregor, Director since 1 April 2014 Jennifer Alltoft, Director from 16 April 2014 to 12 March 2015 Paul Lagunowich, Director since 24 September 2015 The total remuneration to New Zealand based directors for 2015 is $717,000 (2014: $652,000). P?zer New Zealand Limited has paid the remuneration of the directors of the NZ based directors of P?zer PFE New Zealand for the current ?nancial period. 18 Commitments As at 30 November 2015 the Company had no capital commitments Operating leases The Company leases various of?ces under non-cancellable operating leases expiring within two years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated. The Company also leases various plant and machinery under cancellable operating leases. The Company is required to give six months? notice for termination of these leases. 2015 2014 $?000 Commitments for minimum lease payments in relation to non?cancellable operating leases are payable as follows: Within one year 288 449 Later than one year but not later than ?ve years 187 638 Total lease commitments 475 1,087 Total operating lease expenses recognized in the statement of pro?t or loss and other comprehensive income totalled $236,000 for the period ending 30 November 2015 (2014: $1,405,000). 19 Contingencies The directors are of the opinion that provisions are not required in respect of any contingencies for 2015. _19_ Pfizer New Zealand Limited Notes to the financial statements (continued) 20 Related party transactions P?zer New Zealand Limited is a wholly owned subsidiary of P?zer Global Holdings B.V. incorporated in Netherlands, whose ultimate parent is P?zer Inc, a Group incorporated in the United States of America. During the year there were no dividend payment to the parent entity (2014: $30,000,000). Related party information During the ?nancial year P?zer New Zealand Limited had the following signi?cant related party transactions, which related to the purchase of inventory, receipt of marketing and distribution allowances and treasury transactions. AII intercompany balances are unsecured and payable on demand. All transactions are at arms length. During the ?nancial year, the Company acted as an agent and purchased inventory from related parties on behalf of P?zer PFE New Zealand. The Company also purchased active ingredients and ?nished products from related entities and sold ?nished products to related entities. Such purchases and sales were on normal commercial terms and conditions. Net purchases totalled $16,017,000 (2014: $73,875,000) and sales totalled $484,000 (2014: $793,000). At year end amounts owing to related entities totalled $27,916,000 (2014: $12,700,000) and amounts receivable from related entities totalled $30,091,000 (2014: $18,878,000). The Company has no loans from related entities in 2015 (2014: $Nil). The nature of the relationship with the following related parties is that of fellow subsidiary of P?zer Inc. FerroSan AIS Lederle International I OTC Div Of ACY Pfizer Asia Manufacturing Pte Pfizer Australia Pty Limited Pfizer Corporation Hong Kong Limited Pfizer Enterprises SARL BE VAT Pfizer Enterprises SARL FR VAT Pfizer Enterprises SARL lT VAT Pfizer Enterprises SARL Sales Branch Pfizer Export Company Pfizer Export Company BE VAT Pfizer Export Company DE VAT Pfizer Export Company Export Division Hong Kong Pfizer Export Company GB VAT Pfizer Finance Dalian Co Pfizer Global Trading . Pfizer Global Trading BE VAT Pfizer Global Trading DE VAT Pfizer Inc Pfizer Italia SRL P?zer Manufacturing Services GB VAT Pfizer Manufacturing Services SE VAT Pfizer Overseas LLC Pfizer Singapore Trading Pte Limited BE VAT Pfizer Singapore Trading Pte Limited DE VAT Warner-Lambert Company LLC Wyeth Farma SA On 1 December 2014, the Company sold the Innovative Products, Vaccines, Oncology and Consumer Businesses to P?zer PFE New Zealand for $22,455,325. The Company then distributed these proceeds in full to its Holding Company by way of a return of capital. _20_ Pfizer New Zealand Limited Notes to the financial statements (continued) 21 Events occurring after the reporting date On The 18th March 2016, P?zer New Zealand Limited acquired the shares in Hospira NZ Limited from Hospira Singapore PTE. P?zer New Zealand Limited acquired all the share capital of Hospira NZ Limited for a cash consideration of $151,000. -21-