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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
A. Components of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive
(Income)/Loss
The annual cost and other amounts recognized in other comprehensive (income)/loss of the U.S. qualified, U.S. supplemental (non-
qualified) and international pension plans and postretirement plans follow:
YEAR ENDED DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
(MILLIONS OF DOLLARS) 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008
Service cost(a) $ 347 $ 252 $ 236 $28 $24 $23 $ 231 $ 188 $ 249 $79 $39 $39
Interest cost(a) 740 526 459 77 53 38 427 342 388 211 145 141
Expected return on
plan assets(a) (782) (527) (646) ———(435) (375) (437) (31) (26) (35)
Amortization of:
Actuarial losses 151 212 32 29 31 29 67 30 43 15 18 28
Prior service
costs/(credits) 223(2) (2) (2) (5) (3) 1 (38) (3) 1
Curtailments and
settlements—net (52) 110 32 1(2) 120 (3) 43(23) (3) 10
Special termination
benefits 73 61 30 180 137 — 6825 19 24 17
Net periodic benefit
costs 479 636 146 313 241 208 288 194 272 232 194 201
Other changes
recognized in
other
comprehensive
(income)/loss(b) 260 (783) 2,273 117 (23) (52) 152 1,000 415 (183) (122) (140)
Total recognized in
net periodic
benefit costs and
other
comprehensive
(income)/loss $ 739 $(147) $2,419 $430 $218 $156 $ 440 $1,194 $ 687 $49 $72 $61
(a) The acquisition of Wyeth during fourth quarter 2009 contributed to the increase in certain components of net periodic benefit costs, such as service
cost and interest cost, which was largely offset by higher expected returns on plan assets during 2010 from the inclusion of the Wyeth plan assets.
(b) For details, see Note 8. Other Comprehensive Income/(Loss).
The decrease in the 2010 U.S. qualified pension plans’ net periodic benefit costs compared to 2009 was largely driven by
curtailment gains and lower settlement charges associated with Wyeth-related restructuring initiatives. The increase in the 2009 U.S.
qualified pension plans’ net periodic benefit costs compared to 2008 was largely driven by the securities market downturn during
2008 and by charges resulting from employee terminations associated with our cost-reduction initiatives. The securities market
downturn during 2008 contributed to a lower plan asset base and higher actuarial losses recognized.
The increase in the 2010 U.S. supplemental (non-qualified) plans’ net periodic benefit costs compared to 2009 was primarily driven
by special termination benefits recognized for certain executives as part of ongoing Wyeth-related restructuring initiatives. The
increase in the 2009 U.S. supplemental (non-qualified) plans’ net periodic benefit costs compared to 2008 was largely driven by the
impact of special termination benefits recognized for certain executives as part of Wyeth-related restructuring initiatives, which was
largely offset by lower settlement charges
The increase in the 2010 international plans’ net periodic benefit costs compared to 2009 was primarily driven by changes to
actuarial assumptions, which include a decrease in the discount rate. The decrease in the 2009 international plans’ net periodic
benefit costs compared to 2008 was largely driven by an increase in interest rates set at the beginning of the year and ongoing
restructuring and certain acquisition-related activities, which was partially offset by lower expected returns on plan assets.
The following table presents the amount in Accumulated other comprehensive (loss)/income expected to be amortized into 2011 net
periodic benefit costs:
PENSION PLANS
(MILLIONS OF DOLLARS) U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
Actuarial losses $(141) $(38) $(84) $(17)
Prior service credits and other 8 3 5 56
Total $(133) $(35) $(79) $ 39
84 2010 Financial Report