Pfizer 2006 Annual Report Download - page 75

74 2006 Financial Report
Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
The following tables present segment, geographic and revenue information:
Segment
FOR/AS OF THE YEAR ENDED DEC. 31,
(MILLIONS OF DOLLARS) 2006 2005 2004
Revenues
Pharmaceutical $ 45,083 $ 44,269 $ 46,121
Animal Health 2,311 2,206 1,953
Corporate/Other
(a)
977 930 914
Total revenues $ 48,371 $ 47,405 $ 48,988
Segment profit/(loss)
(b)
Pharmaceutical $ 20,718 $ 19,599 $ 20,949
Animal Health 419 405 352
Corporate/Other
(a)(c)
(8,109) (9,204) (7,898)
Total profit/(loss) $ 13,028 $ 10,800 $ 13,403
Identifiable assets
Pharmaceutical $ 72,497 $ 74,056 $ 81,185
Animal Health 1,951 2,098 1,992
Discontinued operations/Held for sale 62 6,659 6,631
Corporate/Other
(a)(d)
40,327 34,157 36,040
Total identifiable assets $114,837 $116,970 $125,848
Property, plant and equipment additions
(e)
Pharmaceutical $ 1,681 $ 1,703 $ 2,228
Animal Health 51 61 95
Discontinued operations/Held for sale 162 189 116
Corporate/Other
(a)
156 153 162
Total property, plant and equipment additions $ 2,050 $ 2,106 $ 2,601
Depreciation and amortization
(e)
Pharmaceutical $ 1,765 $ 1,880 $ 1,473
Animal Health 49 59 57
Discontinued operations/Held for sale 71 78 81
Corporate/Other
(a)(f)
3,408 3,559 3,482
Total depreciation and amortization $ 5,293 $ 5,576 $ 5,093
(a)
Corporate/Other includes our gelatin capsules business, our
contract manufacturing business and a bulk pharmaceutical
chemicals business. Corporate/Other also includes interest
income/(expense), corporate expenses (e.g., corporate
administration costs), other income/(expense) (e.g., realized
gains and losses attributable to our investments in debt and
equity securities), certain performance-based and all share-based
compensation expenses not allocated to the business segments,
significant impacts of purchase accounting for acquisitions,
certain milestone payments, acquisition-related costs, intangible
asset impairments and costs related to our AtS productivity
initiative.
(b)
Segment profit/(loss) equals income from continuing operations
before provision for taxes on income, minority interests and the
cumulative effect of a change in accounting principles. Certain
costs, such as significant impacts of purchase accounting for
acquisitions, acquisition-related costs and costs related to our
AtS productivity initiative, are included in Corporate/Other only.
This methodology is utilized by management to evaluate our
businesses.
(c)
In 2006, Corporate/Other includes (i) significant impacts of
purchase accounting for acquisitions of $4.1 billion, including
acquired in-process research and development, intangible asset
amortization and other charges, (ii) acquisition-related costs of
$27 million, (iii) restructuring charges and implementation costs
associated with the AtS productivity initiative of $2.1 billion, (iv)
stock options expense, (v) impairment of the Depo-Provera
intangible asset of $320 million, (vi) gain on disposals of
investments and other of $173 million, and (vii) a research and
development milestone due to us from sanofi-aventis of
approximately $118 million.
In 2005, Corporate/Other includes (i) significant impacts of
purchase accounting for acquisitions of $4.9 billion, including
acquired in-process research and development, intangible asset
amortization and other charges, (ii) acquisition-related costs of
$918 million, (iii) restructuring charges and implementation costs
associated with the AtS productivity initiative of $763 million,
(iv) costs associated with the suspension of Bextra’s sales and
marketing of $1.2 billion, and (v) gain on disposals of investments
and other of $134 million.
In 2004, Corporate/Other includes (i) significant impacts of
purchase accounting for acquisitions of $4.4 billion, including
acquired in-process research and development, intangible asset
amortization and other charges, and the sale of acquired
inventory written up to fair value, (ii) acquisition-related costs of
$1.2 billion, (iii) an impairment charge of $691 million for Depo-
Provera, (iv) a $369 million charge for litigation-related matters,
(v) contingent income earned from the 2003 sale of a product-in-
development of $100 million, (vi) the operating results of a
divested legacy Pharmacia research facility of $64 million, and
(vii) other legacy Pharmacia intangible asset impairments of
$11 million.
(d)
Corporate assets are primarily cash, short-term investments and
long-term investments and loans.
(e)
Certain production facilities are shared by various segments.
Property, plant and equipment, as well as capital additions and
depreciation, are allocated based on estimates of physical
production.
(f)
Corporate/Other includes non-cash charges associated with
purchase accounting related to intangible asset amortization of
$3.2 billion in 2006, and $3.3 billion in 2005 and 2004.