Pfizer 2009 Annual Report Download - page 107

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Financial Summary
Pfizer Inc. and Subsidiary Companies
(a) In accordance with Pfizer’s domestic and international year-ends, includes approximately two-and-a-half months of Wyeth’s U.S. operations and
approximately one-and-a-half months of Wyeth’s international operations in 2009.
(b) Research and development expenses includes co-promotion charges and milestone payments for intellectual property rights of $474 million in
2009; $377 million in 2008; $603 million in 2007; $292 million in 2006; $156 million in 2005; and $160 million in 2004.
(c) 2009 amount relates to the resolution of a contingency related to our 2008 acquisition of CovX. In 2008, 2007, 2006, 2005 and 2004, we recorded
charges for the estimated portion of the purchase price of acquisitions allocated to in-process research and development.
(d) Restructuring charges and certain acquisition-related costs primarily includes the following:
2009—Restructuring charges of $4.3 billion related to our cost-reduction initiatives.
2008—Restructuring charges of $2.6 billion related to our cost-reduction initiatives.
2007—Restructuring charges of $2.5 billion related to our cost-reduction initiatives.
2006—Restructuring charges of $1.3 billion related to our cost-reduction initiatives.
2005—Integration costs of $532 million and restructuring charges of $372 million related to our acquisition of Pharmacia in 2003 and restructuring
charges of $438 million related to our cost-reduction initiatives.
2004—Integration costs of $454 million and restructuring charges of $680 million related to our acquisition of Pharmacia in 2003.
(e) In 2005, as a result of adopting accounting rules related to asset retirement obligations, we recorded a non-cash pre-tax charge of $40 million ($23
million, net of tax).
(f) Includes discontinued operations.
(g) For 2005 and 2004, includes assets held for sale of our former consumer healthcare business (sold in 2006), and for 2004, also includes in-vitro
allergy and autoimmune diagnostic testing, surgical ophthalmic, certain European generics, confectionery and shaving businesses, and the femhrt,
Loestrin and Estrostep women’s health product lines.
(h) Defined as long-term debt, deferred taxes and total shareholders’ equity. In 2009, increase reflects the deferred tax liabilities associated with the
acquisition of Wyeth.
(i) Represents total shareholders’ equity divided by the actual number of common shares outstanding (which excludes treasury shares and those held
by our employee benefit trusts). The increase in shareholders’ equity per common share is due to the issuance of equity to partially fund the Wyeth
acquisition.
Peer Group Performance Graph
Five Year Performance
0.0
50.0
100.0
150.0
200.0
2004 2005 2006 2007 2008 2009
PEER GROUP (New) S&P 500
PFIZER PEER GROUP (Old)
2004 2005 2006 2007 2008 2009
Pfizer 100.0 89.4 103.0 94.6 78.7 85.1
Peer Group (Old) 100.0 99.4 116.9 130.4 108.2 126.2
Peer Group (New) 100.0 106.3 118.0 119.8 100.8 117.0
S&P 500 100.0 105.3 121.3 128.0 80.6 102.0
Since 2005, Pfizer’s pharmaceutical peer group has consisted of the following companies: Abbott Laboratories, Amgen,
AstraZeneca, Bristol-Myers Squibb Company, Eli Lilly and Company, GlaxoSmithKline, Johnson & Johnson, Merck and Co.,
Schering-Plough Corporation and Wyeth (New Peer Group). Prior to that, Pfizer’s pharmaceutical peer group was comprised of
Abbot Laboratories, Baxter International, Bristol-Myers Squibb Company, Colgate-Palmolive Company, Eli Lilly and Company,
Johnson & Johnson, Merck and Co., Schering-Plough Corporation and Wyeth (Old Peer Group). Wyeth’s 2009 total shareholder
return is until 10/15/09; Schering-Plough Corporation’s total shareholder return is until 11/03/09.
We believe that the companies included in the New Peer Group are more reflective of the Company’s core business, and therefore will
provide a more meaningful comparison of stock performance. We have included the New Peer Group in the graph to show what the
comparison to those companies would have been if the New Peer Group had been in place during the periods shown on the graph.
2009 Financial Report 105