Pfizer 2009 Annual Report Download - page 75

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
10. Inventories
The components of inventories follow:
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2009 2008
Finished goods $ 5,249 $2,024
Work-in-process 5,776 1,527
Raw materials and supplies 1,378 830
Total inventories(a), (b) $12,403 $4,381
(a) Increase primarily due to the acquisition of Wyeth inventories, which were recorded at fair value (see Note 2. Acquisition of Wyeth for additional
detail). Wyeth inventories included pre-launch inventory associated with Prevnar/Prevenar 13 Infant which did not launch until 2010. Prevnar/
Prevenar 13 Infant was approved by the EU member states in December 2009 and in the U.S. in February 2010.
(b) Certain amounts of inventories are in excess of one year’s supply, including the pre-launch inventory associated with Prevnar/Prevenar 13 Infant.
These excess amounts are primarily attributable to biologics inventory acquired from Wyeth at fair value and the quantities are generally consistent
with the normal operating cycle of such inventory. There are no recoverability issues associated with these quantities.
11. Property, Plant and Equipment
The major categories of property, plant and equipment follow:
USEFUL LIVES
(YEARS)
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2009 2008
Land — $ 937 $ 616
Buildings 33
1
⁄ 3 -50 14,186 8,775
Machinery and equipment 8-20 12,236 9,583
Furniture, fixtures and other 3-12
1
⁄ 2 4,599 4,350
Construction in progress — 1,966 1,804
33,924 25,128
Less: Accumulated depreciation 11,144 11,841
Total property, plant and equipment(a) $22,780 $13,287
(a) Increase primarily due to the acquisition of Wyeth property, plant and equipment, which was recorded at fair value (see Note 2. Acquisition of Wyeth
for additional detail).
12. Goodwill and Other Intangible Assets
A. Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2009 and 2008 follow:
(MILLIONS OF DOLLARS) BIOPHARMACEUTICAL DIVERSIFIED OTHER TOTAL
Balance as of January 1, 2008 $21,256 $126 $ — $21,382
Additions(a) 21 36 — 57
Other(b) 40 (15) — 25
Balance, December 31, 2008 21,317 147 — 21,464
Additions(a) — — 19,954 19,954
Other(b) 848 26 84 958
Balance as of December 31, 2009 $22,165 $173 $20,038 $42,376
(a) In 2009, $20.0 billion relates to our acquisition of Wyeth and is subject to change upon completion of our allocation of the consideration transferred
to the assets acquired and liabilities assumed from Wyeth (see Note 2. Acquisition of Wyeth). The allocation of goodwill among reporting units has
not yet been completed but will be completed within one year from the Wyeth acquisition date, October 15, 2009. In 2008, primarily related to our
acquisitions of Coley and a number of animal health product lines from Schering-Plough, as well as two smaller animal health acquisitions.
(b) In 2009, primarily relates to foreign exchange, partially offset by a reduction of approximately $150 million in Biopharmaceutical in connection with
the formation of ViiV (see Note 3A. Other Significant Transactions and Events: Formation of ViiV, an Equity-Method Investment for additional
information.) In 2008, primarily relates to tax adjustments and the impact of foreign exchange.
2009 Financial Report 73