Pfizer 2005 Annual Report Download - page 75

74 2005 Financial Report
Financial Summary
Pfizer Inc and Subsidiary Companies
2004 — Integration costs of $475 million and restructuring charges
of $704 million related to our acquisition of Pharmacia in 2003.
2003 — Integration costs of $838 million and restructuring charges
of $177 million related to our acquisition of Pharmacia in 2003.
2002 — Integration costs of $345 million and restructuring
charges of $187 million related to our merger with Warner-
Lambert in 2000 and pre-integration costs of $98 million related
to our pending acquisition of Pharmacia.
2001 — Integration costs of $456 million and restructuring
charges of $363 million related to our merger with Warner-
Lambert in 2000.
2000 — Transaction costs directly related to our merger with
Warner-Lambert of $226 million; costs related to Warner-
Lambert’s termination of the Warner-Lambert/American Home
Products merger of $1.8 billion; integration costs of $242 million
and restructuring charges of $917 million.
(e) In 2005, as a result of adopting FIN 47, Accounting for Conditional
Asset Retirement Obligations, we recorded a non-cash pre-tax
charge of $40 million ($25 million, net of tax). In 2003, as a result
of adopting SFAS No.143, Accounting for Asset Retirement
Obligations, we recorded a non-cash pre-tax charge of $47 million
($30 million, net of tax).
In 2002, as a result of adopting SFAS No.142, Goodwill and Other
Intangible Assets, we recorded pre-tax charges of $565 million
($410 million, net of tax).
(f) For 2004, 2003, 2002, 2001 and 2000, includes assets held for sale
of our in-vitro allergy and autoimmune diagnostic testing, surgical
ophthalmic, certain European generics, confectionery and shaving
businesses (and the Tetra business in 2001 and 2000) as well as
certain non-core consumer healthcare products (primarily
marketed in Europe) and the femhrt, Loestrin and Estrostep
women’s health product lines.
(g) Defined as long-term debt, deferred taxes, minority interests and
shareholders’ equity.
On April 16, 2003, Pfizer acquired Pharmacia Corporation, in a transaction
accounted for as a purchase. All financial information reflects the
following as discontinued operations: our in-vitro allergy and autoimmune
diagnostic testing, certain European generics, surgical ophthalmic,
confectionery, shaving and fish-care products businesses as well as certain
non-core consumer healthcare product lines (primarily marketed in
Europe) and the femhrt, Loestrin and Estrostep women’s health product
lines, as applicable.
In addition, depreciation and amortization includes amortization of
goodwill prior to our adoption of SFAS No.142, Goodwill and Other
Intangible Assets, in 2002.
(a) In 2001, we brought the accounting methodology pertaining to
accruals for estimated liabilities related to Medicaid discounts and
contract rebates of Warner-Lambert into conformity with our
historical method. This adjustment increased revenues in 2001 by
$175 million. 2001 and 2000 data reflect reclassifications between
Revenues and Other costs and expenses of $108 million in 2001,
and $105 million in 2000 as a result of the January 1, 2002
adoption of EITF Issue No.00-25, Vendor Income Statement
Characterization of Consideration Paid to a Reseller of the
Vendor’s Products.
(b) Research and development expenses includes co-promotion
charges and milestone payments for intellectual property rights of
$156 million in 2005; $160 million in 2004; $380 million in 2003;
$32 million in 2002; and $206 million in 2001.
(c) In 2005, 2004 and 2003, we recorded charges for the estimated
portion of the purchase price of acquisitions allocated to in-
process research and development.
(d) Restructuring charges and merger-related costs primarily includes
the following:
2005 — Integration costs of $538 million and restructuring
charges of $390 million related to our acquisition of Pharmacia in
2003 and restructuring charges of $450 million related to our AtS
productivity initiative.