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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
8. Inventories
The components of inventories follow:
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2011 2010
Finished goods $2,765 $3,665
Work-in-process 4,119 3,727
Raw materials and supplies 885 883
Total inventories(a), (b) $7,769 $8,275
(a) The decrease in total inventories is primarily due to the inventory sold during 2011 that was acquired from Wyeth and had been recorded at fair
value, partially offset by the acquisition of King (see Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method
Investments: Acquisition of King Pharmaceuticals, Inc.) and the impact of foreign exchange.
(b) Certain amounts of inventories are in excess of one year’s supply. There are no recoverability issues associated with those amounts.
9. Property, Plant and Equipment
The components of property, plant and equipment follow:
USEFUL LIVES
(YEARS)
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2011 2010
Land — $ 747 $ 791
Buildings 331/3-50 12,804 13,200
Machinery and equipment 8-20 11,541 11,744
Furniture, fixtures and other 3-121/24,291 4,643
Construction in progress — 1,139 999
30,522 31,377
Less: Accumulated depreciation 13,584 12,732
Total property, plant and equipment(a) $16,938 $18,645
(a) The decrease in total property, plant and equipment is primarily due to depreciation, disposals and impairments, partially offset by capital additions,
the impact of foreign exchange and the acquisition of King (see Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method
Investments: Acquisition of King Pharmaceuticals, Inc.).
10. Goodwill and Other Intangible Assets
A. Goodwill
The components and changes in the carrying amount of goodwill follow:
(MILLIONS OF DOLLARS)
PRIMARY
CARE
SPECIALTY
CARE AND
ONCOLOGY
ESTABLISHED
PRODUCTS AND
EMERGING
MARKETS
ANIMAL
HEALTH AND
CONSUMER
HEALTHCARE NUTRITION OTHER(a) TOTAL
Balance, January 1, 2010(b) $3,272 $ 9,010 $ 9,883 $ 154 $ — $ 20,038 $42,357
Additions(c) 11 29 32 19 — 2,163 2,254
Other(d) (71) (195) (214) (14) — (189) (683)
Allocation of other goodwill 2,838 7,815 8,573 2,290 496 (22,012) —
Balance, December 31, 2010(b) 6,050 16,659 18,274 2,449 496 — 43,928
Additions(e) 129 300 321 55 — — 805
Other(d) 50 138 151 (7) 2 — 334
Balance, December 31, 2011 $6,229 $17,097 $18,746 $2,497 $498 $ — $45,067
(a) The Other goodwill related to our acquisition of Wyeth and was unallocated and subject to change until we completed the recording of the assets
acquired and liabilities assumed (see Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisition
of Wyeth).
(b) Beginning in the first quarter of 2011, our Company is managed through five operating segments, as shown in the table above (see also Note 18.
Segment, Product and Geographic Area Information for further discussion about the change in management approach). As part of the change, we
have retrospectively presented goodwill according to the new operating segment structure.
(c) Primarily reflects the impact of measurement period adjustments related to Wyeth (see Note 2A. Acquisitions, Divestitures, Collaborative
Arrangements and Equity-Method Investments: Acquisition of Wyeth).
(d) Primarily reflects the impact of foreign exchange.
(e) Primarily reflects the acquisition of King (see Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments:
Acquisition of King Pharmaceuticals, Inc.).
82 2011 Financial Report