Pfizer 2010 Annual Report Download - page 58

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Consolidated Statements of Cash Flows
Pfizer Inc. and Subsidiary Companies
YEAR ENDED DECEMBER 31,
(MILLIONS OF DOLLARS) 2010 2009 2008
Operating Activities
Net income before allocation to noncontrolling interests $ 8,289 $ 8,644 $ 8,127
Adjustments to reconcile net income before noncontrolling interests to net cash provided
by operating activities:
Depreciation and amortization 8,487 4,757 5,090
Share-based compensation expense 405 349 384
Acquisition-related in-process research and development charges 125 68 633
Asset write-offs and impairment charges 3,486 305 570
Gains on disposals (155) (670) (14)
Gains on sales of discontinued operations —— (6)
Deferred taxes from continuing operations 1,953 (9,582) (1,331)
Benefit plan contributions (in excess of)/less than expense (691) 545 (49)
Other non-cash adjustments (19) 199 (74)
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable (608) 252 195
Inventories 2,917 1,631 294
Other assets (896) (867) (538)
Accounts payable and other liabilities 827 1,502 4,310
Other tax accounts, net (12,666) 9,454 647
Net cash provided by operating activities 11,454 16,587 18,238
Investing Activities
Purchases of property, plant and equipment (1,513) (1,205) (1,701)
Purchases of short-term investments with original maturities greater than 90 days (10,931) (35,331) (35,705)
Proceeds from redemptions and sales of short-term investments with original
maturities greater than 90 days 4,543 42,364 27,883
Proceeds from redemptions and sales of short-term investments with original
maturities of 90 days or less—net 5,950 5,775 7,913
Purchases of long-term investments (3,920) (6,888) (9,357)
Proceeds from redemptions and sales of long-term investments 4,381 6,504 1,009
Proceeds from redemptions of short-term loans with original
maturities greater than 90 days 1,156 1,158 625
Issuances of short-term loans with original maturities greater than 90 days (151) (565) (449)
Proceeds from redemptions of long-term loans 356 —55
Issuances of long-term loans (208) (61) (501)
Acquisitions, net of cash acquired (273) (43,123) (1,184)
Other investing activities 118 100 (1,423)
Net cash used in investing activities (492) (31,272) (12,835)
Financing Activities
Increase in short-term borrowings—net 6,400 32,033 40,119
Principal payments on short-term borrowings—net (10,546) (34,969) (37,264)
Proceeds from issuances of long-term debt —24,023 605
Principal payments on long-term debt (6) (967) (1,053)
Purchases of common stock (1,000) — (500)
Cash dividends paid (6,088) (5,548) (8,541)
Other financing activities 66 (91) 74
Net cash (used in)/provided by financing activities (11,174) 14,481 (6,560)
Effect of exchange-rate changes on cash and cash equivalents (31) 60 (127)
Net decrease in cash and cash equivalents (243) (144) (1,284)
Cash and cash equivalents at beginning of year 1,978 2,122 3,406
Cash and cash equivalents at end of year $ 1,735 $ 1,978 $ 2,122
Supplemental Cash Flow Information
Non-cash transactions:
Acquisition of Wyeth, treasury stock issued $—$ 23,303 $ —
Cash paid during the period for:
Income taxes $ 11,775 $ 2,300 $ 2,252
Interest 2,155 935 782
See Notes to Consolidated Financial Statements, which are an integral part of these statements.
56 2010 Financial Report