net purchases of investments of $4.2 billion in 2014, compared to $9.4 billion in 2013,

partially offset by:

• cash paid of $195 million, net of cash acquired, for the acquisition of InnoPharma in 2014.

2013 v. 2012

Our net cash used in investing activities was $10.5 billion in 2013, compared to net cash provided by investing activities of $6.2 billion in 2012. The increase in net cash used in investing activities was primarily attributable to:

• the nonrecurrence of net proceeds received on November 30, 2012 from the sale of our Nutrition business of $11.85 billion (see Notes to Consolidated Financial Statements––Note 2D. Acquisitions, Licensing Agreements, Collaborative Arrangements, Divestitures, and Equity- Method Investments: Divestitures); and

• net purchases of investments of $9.4 billion in 2013, compared to net purchases of investments of $3.4 billion in 2012,

partially offset by:

• cash paid of $1.1 billion, net of cash acquired, for our acquisitions of Alacer, Ferrosan and NextWave in 2012 (see Notes to Consolidated Financial Statements––Note 2A. Acquisitions, Licensing Agreements, Collaborative Arrangements, Divestitures, and Equity-Method Investments: Acquisitions).

Financing Activities

2014 v. 2013

Our net cash used in financing activities was $10.0 billion in 2014, compared to $15.0 billion in 2013. The decrease in net cash used in financing activities was primarily attributable to:

• purchases of common stock of $5.0 billion in 2014, compared to $16.3 billion in 2013, partially offset by:

• net proceeds from borrowings of $548 million in 2014, compared to net proceeds from borrowings of $6.0 billion in 2013; and

• proceeds from the exercise of stock options of $1.0 billion in 2014, compared to $1.8 billion in 2013.

2013 v. 2012

Our net cash used in financing activities was $15.0 billion in 2013, compared to $16.0 billion in 2012. The decrease in net cash used in financing activities was primarily attributable to:

• net proceeds from borrowings of $6.0 billion in 2013, compared to net repayments of borrowings of $1.7 billion in 2012; and

• proceeds from the exercise of stock options of $1.8 billion in 2013 compared to $0.6 billion in 2012, partially offset by:

• purchases of common stock of $16.3 billion in 2013, compared to $8.2 billion in 2012.

Supplemental Schedule of Non-Cash Investing and Financing Information

In 2013, we had the following non-cash transactions:

• we sold Zoetis common stock for Pfizer common stock valued at $11.4 billion;

• we exchanged Zoetis common stock for the retirement of Pfizer commercial paper issued in 2013 for $2.5 billion;

• we exchanged Zoetis senior notes for the retirement of Pfizer commercial paper issued in 2012 for $1.0 billion;

• we transferred certain product rights, valued at $1.2 billion, to an equity-method investment (Hisun Pfizer); and

• we contributed an investment, valued at $447 million, in connection with the resolution of a legal matter (Quigley).

Zoetis is our former Animal Health business. For further details on Zoetis-related transactions, see Notes to Consolidated Financial Statements—Note 2D. Acquisitions, Licensing Agreements, Collaborative