Pfizer 2010 Annual Report Download - page 89

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
The favorable change in our postretirement plans’ accumulated benefit obligations (ABO) funded status from $3.4 billion
underfunded in the aggregate as of December 31, 2009, to $3.2 billion underfunded in the aggregate as of December 31, 2010, was
largely driven by the harmonization of the Wyeth postretirement benefit plan into the existing lower-cost Pfizer postretirement benefit
plan, which was partially offset by higher costs incurred from the acquired Wyeth defined benefit obligations and the 0.4 percentage-
point reduction in discount rate.
The ABO for all of our U.S. qualified pension plans was $12.0 billion in 2010 and $11.4 billion in 2009. The ABO for our U.S.
supplemental (non-qualified) pension plans was $1.2 billion in 2010 and 2009. The ABO for our international pension plans was $8.1
billion in 2010 and $8.0 billion in 2009.
The U.S. qualified pension plans loan securities to other companies. Such securities may be onward loaned, sold or pledged by the
other companies, but they may be required to be returned in a short period of time. We also require cash collateral from these
companies and a maintenance margin of 103% of the fair value of the collateral relative to the fair value of the loaned securities. As
of December 31, 2010, the fair value of collateral received was $581 million and, as of December 31, 2009, the fair value of
collateral received was $722 million. The securities loaned continue to be included in the table above in Fair value of plan assets at
end of year.
Amounts recognized in our consolidated balance sheet follow:
AS OF DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
(MILLIONS OF DOLLARS) 2010 2009 2010 2009 2010 2009 2010 2009
Noncurrent assets(a) $—$— $—$— $ 119 $ 146 $—$—
Current liabilities(b) ——(155) (203) (41) (58) (133) (120)
Noncurrent liabilities(c) (2,439) (2,601) (1,246) (1,165) (2,516) (2,626) (3,035) (3,243)
Funded status $(2,439) $(2,601) $(1,401) $(1,368) $(2,438) $(2,538) $(3,168) $(3,363)
(a) Included primarily in Taxes and other noncurrent assets.
(b) Included in Other current liabilities.
(c) Included in Pension benefit obligations and Postretirement benefit obligations, as appropriate.
Amounts recognized in Accumulated other comprehensive (loss)/income follow:
AS OF DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
(MILLIONS OF DOLLARS) 2010 2009 2010 2009 2010 2009 2010 2009
Actuarial losses $(2,699) $(2,391) $(525) $(405) $(2,388) $(2,231) $(451) $(226)
Prior service (costs)/credits
and other 63 15 21 18 (18) (23) 581 173
Total $(2,636) $(2,376) $(504) $(387) $(2,406) $(2,254) $ 130 $ (53)
The actuarial losses primarily represent the cumulative difference between the actuarial assumptions and actual return on plan
assets, changes in discount rates and changes in other assumptions used in measuring the benefit obligations. These actuarial
losses are recognized in Accumulated other comprehensive (loss)/income and are amortized into net periodic pension costs over an
average period of 10.1 years for our U.S. qualified plans, an average period of 10.6 years for our U.S. supplemental (non-qualified)
plans and an average period of 13.7 years for our international plans.
Information related to the U.S. qualified, U.S. supplemental (non-qualified) and international pension plans follows:
AS OF DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
(MILLIONS OF DOLLARS) 2010 2009 2010 2009 2010 2009
Pension plans with an accumulated benefit obligation in excess of
plan assets:
Fair value of plan assets $10,596 $ 9,792 $— $— $2,235 $1,796
Accumulated benefit obligation 11,953 11,218 1,177 1,246 4,082 3,725
Pension plans with a projected benefit obligation in excess of plan
assets:
Fair value of plan assets 10,596 9,977 ——5,739 5,332
Projected benefit obligation 13,035 12,578 1,401 1,368 8,296 8,016
All of our U.S. plans were underfunded as of December 31, 2010.
2010 Financial Report 87