Pfizer 2009 Annual Report Download - page 77

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
All of these IPR&D assets were acquired in connection with our acquisition of Wyeth. The significant components of IPR&D are
Prevnar/Prevenar 13 Adult and projects for the treatment of Alzheimer’s disease, cancer and leukemia, among others.
Amortization and Impairments
The weighted-average life of both our total finite-lived intangible assets and our developed technology rights is approximately 11
years. Total amortization expense for finite-lived intangible assets was $3.0 billion in 2009, $2.8 billion in 2008 and $3.2 billion in
2007.
The annual amortization expense expected for the years 2010 through 2014 is as follows:
(MILLIONS OF DOLLARS) 2010 2011 2012 2013 2014
Amortization expense $5,884 $5,842 $5,737 $5,309 $4,317
In 2009, we recorded an impairment charge of $298 million in Other (income)/deductions––net associated with certain materials
used in our research and development activities that are no longer considered recoverable. We had no significant impairments in
2008, and, in 2007, we recorded charges of $1.1 billion in Cost of sales and Selling, informational and administrative expenses
related to the impairment of Exubera (see Note 3F. Other Significant Transactions and Events: Exubera).
13. Pension and Postretirement Benefit Plans and Defined Contribution Plans
We provide defined benefit pension plans and defined contribution plans for the majority of our employees worldwide. In the U.S.,
we have both qualified and supplemental (non-qualified) defined benefit plans. A qualified plan meets the requirements of certain
sections of the Internal Revenue Code, and, generally, contributions to qualified plans are tax deductible. A qualified plan typically
provides benefits to a broad group of employees and may not discriminate in favor of highly compensated employees in its
coverage, benefits or contributions. A supplemental (non-qualified) plan provides additional benefits to certain employees. In
addition, we provide medical and life insurance benefits to certain retirees and their eligible dependents through our postretirement
plans. In 2009, we assumed all of Wyeth’s defined benefit obligations and related plan assets for qualified and non-qualified pension
plans and postretirement plans in connection with our acquisition of Wyeth (see Note 2. Acquisition of Wyeth).
2009 Financial Report 75