Pfizer 2013 Annual Report Download - page 42

Financial Review
Pfizer Inc. and Subsidiary Companies
2013 Financial Report 41
2011
For Foreign currency translation adjustments, reflects the strengthening of several currencies against the U.S. dollar, primarily the euro, the
Japanese yen, the U.K. pound and the Australian dollar, and the reclassification of certain amounts associated with dispositions into income.
For Unrealized holding gains/(losses) on derivative financial instruments, reflects the impact of fair value remeasurements (losses) and the
reclassification of realized losses into income. See also Notes to Consolidated Financial Statements—Note 7 Financial Instruments.
For Unrealized holding gains on available-for-sale securities, reflects the impact of fair value remeasurements and the reclassification of
realized gains into income. For additional information, see Notes to Consolidated Financial Statements—Note 7. Financial Instruments.
For Benefit plans: actuarial gains/(losses), net, reflects the impact of actuarial losses (due to a decrease in the discount rate and lower-than-
expected returns on plan assets) and the reclassification of certain amounts related to amortization and curtailments/settlements into income.
See also Notes to Consolidated Financial Statements—Note 11. Pension and Postretirement Benefit Plans and Defined Contribution Plans.
ANALYSIS OF THE CONSOLIDATED BALANCE SHEETS
For information about certain of our financial assets and liabilities, including Cash and cash equivalents, Short-term investments, Long-term
investments, Short-term borrowings, including current portion of long-term debt, and Long-term debt, see "Analysis of the Consolidated
Statements of Cash Flows" section of this Financial Review, the “Analysis of Financial Condition, Liquidity and Capital Resources: Selected
Measures of Liquidity and Capital Resources” section of this Financial Review and Notes to Consolidated Financial Statements—Note 7.
Financial Instruments.
For information about certain balances in Accounts receivable, less allowance for doubtful accounts, see also the “Analysis of Financial
Condition, Liquidity and Capital Resources: Selected Measures of Liquidity and Capital Resources: Accounts Receivable” section of this
Financial Review.
For information about our tax accounts, including Current deferred tax assets and other current tax assets, Noncurrent deferred tax assets and
other noncurrent tax assets, Noncurrent deferred tax liabilities and Other taxes payable, including the impact of the adoption of a new
accounting standard, see Notes to Consolidated Financial Statements—Note 5. Tax Matters.
For a description of changes in Total Equity, see the consolidated statements of equity.
Virtually all of the changes in our asset and liability accounts as of December 31, 2013, compared to December 31, 2012, reflect, among other
things, decreases due to changes in foreign currency exchange rates. The following explanations exclude the impact of foreign exchange.
• For Accounts receivable, less allowance for doubtful accounts, the change also reflects the timing of collections in the normal course of
business as well as reductions in revenues of certain products.
• For Inventories, the change also reflects increases in pharmaceutical and consumer inventory in the normal course of business.
• For Assets of discontinued operations and other assets held for sale and Liabilities of discontinued operations, the change also reflects
the impact of the full disposition of our Animal Health business (Zoetis). For additional information, see Notes to Consolidated Financial
Statements—Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Divestitures.
• For Long-term investments, the change also reflects an increase associated with the transfer of certain product rights to our equity-
method investment in China. For additional information, see Notes to Consolidated Financial Statements—Note 2D. Acquisitions,
Divestitures, Collaborative Arrangements and Equity-Method Investments: Equity-Method Investments.
• For Property, plant and equipment, less accumulated depreciation, the change also reflects depreciation partially offset by capital
additions. In addition, there were some minor asset impairments and disposals.
• For Goodwill, the change also reflects goodwill derecognized as part of the transfer of certain product rights, which constituted a
business, to our equity-method investment in China. For additional information, see Notes to Consolidated Financial Statements—Note
2D. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Equity-Method Investments and Note 10A.
Goodwill and Other Intangible Assets: Goodwill.
• For Identifiable intangible assets, less accumulated amortization, the change also reflects amortization, asset impairment charges and
the transfer of certain product rights to our equity-method investment in China, slightly offset by some minor intangible asset acquisitions.
For additional information, see Notes to Consolidated Financial Statements—Note 10B. Goodwill and Other Intangible Assets: Other
Intangible Assets. For additional information about the asset impairment charges, see Notes to Consolidated Financial Statements—Note
4. Other (Income)/Deductions—Net. For additional information about the transfer of certain product rights, see Notes to Consolidated
Financial Statements—Note 2D. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Equity-Method
Investments.
• For Accounts payable, the change also reflects the timing of payments in the normal course of business.
• For Other current liabilities, the change also reflects a decrease in our legal accruals, including those related to the Quigley product
liability claims, reflecting payments made, and, to a much lesser extent, decreases in our restructuring accruals, VAT payables, and
accrued interest, all in the normal course of business.
• For Long-term debt, the change also reflects the completion of a public offering of $4.0 billion aggregate principal amount of senior
unsecured notes, the $2.4 billion repayment, at maturity, of our 3.625% senior unsecured notes that were due June 2013, the redemption
in December 2013 of the aggregate principal amount of $1.8 billion of our 5.50% senior unsecured notes that were due February 2014,
and reclassifications to Short-term borrowings, including current portion of long-term debt.