Pfizer 2008 Annual Report Download - page 93

Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
The following tables present segment, geographic and revenue information:
Segment
FOR/AS OF THE YEAR ENDED DECEMBER 31,
(MILLIONS OF DOLLARS) 2008 2007 2006
Revenues
Pharmaceutical $ 44,174 $ 44,424 $ 45,083
Animal Health 2,825 2,639 2,311
Corporate/Other(a) 1,297 1,355 977
Total revenues $ 48,296 $ 48,418 $ 48,371
Segment profit/(loss)(b)
Pharmaceutical $ 21,786 $ 20,740 $ 21,615
Animal Health 772 620 455
Corporate/Other(a)(c) (12,864) (12,082) (9,042)
Total profit/(loss) $ 9,694 $ 9,278 $ 13,028
Identifiable assets
Pharmaceutical $ 60,591 $ 67,431 $ 72,497
Animal Health 2,075 2,043 1,951
Discontinued operations/Held for sale 148 114 62
Corporate/Other(a)(d) 48,334 45,680 41,036
Total identifiable assets $111,148 $115,268 $115,546
Property, plant and equipment additions(e)
Pharmaceutical $ 1,351 $ 1,608 $ 1,681
Animal Health 183 70 51
Discontinued operations/Held for sale —— 162
Corporate/Other(a) 167 202 156
Total property, plant and equipment additions $ 1,701 $ 1,880 $ 2,050
Depreciation and amortization(e)
Pharmaceutical $ 2,223 $ 1,886 $ 1,765
Animal Health 61 52 49
Discontinued operations/Held for sale ——71
Corporate/Other(a)(f) 2,806 3,262 3,408
Total depreciation and amortization $ 5,090 $ 5,200 $ 5,293
(a) Corporate/Other includes our gelatin capsules business, our contract manufacturing business and a bulk pharmaceutical chemicals business, and
transition activity associated with our former Consumer Healthcare business (sold in December 2006). Corporate/Other under Segment profit/(loss)
also includes interest income/(expense), corporate expenses (e.g., corporate administration costs), other income/(expense) (e.g., realized gains and
losses attributable to our investments in debt and equity securities), certain performance-based and all share-based compensation expenses,
significant impacts of purchase accounting for acquisitions, acquisition-related costs, intangible asset impairments and costs related to our cost-
reduction initiatives.
(b) Segment profit/(loss) equals Income from continuing operations before provision for taxes on income and minority interests. Certain costs, such as
significant impacts of purchase accounting for acquisitions, acquisition-related costs and costs related to our cost-reduction initiatives and transition
activity associated with our former Consumer Healthcare business, are included in Corporate/Other only. This methodology is utilized by
management to evaluate our businesses.
(c) In 2008, Corporate/Other includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives of $4.2 billion;
(ii) significant impacts of purchase accounting for acquisitions of $3.2 billion, including acquired in-process research and development, intangible
asset amortization and other charges; (iii) charges of approximately $2.3 billion resulting from an agreement in principle with the U.S. Department of
Justice to resolve the previously reported investigation regarding allegations of past off-label promotional practices concerning Bextra, as wellas
certain other open investigations, and charges of approximately $900 million associated with agreements and agreements in principle to resolve
certain NSAID litigation and claims (see Note 4A. Certain Charges: Bextra and Certain Other Investigations and Note 4B. Certain Charges: Certain
Product Litigation—Celebrex and Bextra); (iv) all share-based compensation expense; (v) net interest income of $772 million; (vi) asset impairment
charges of $213 million; (vii) acquisition-related costs of $49 million; and (viii) transition activity associated with our former Consumer Healthcare
business of $7 million in income.
In 2007, Corporate/Other includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives of $3.9 billion;
(ii) significant impacts of purchase accounting for acquisitions of $3.4 billion, including acquired in-process research and development, intangible
asset amortization and other charges; (iii) $2.8 billion of charges associated with Exubera (see Note 4D. Certain Charges: Exubera); (iv) net interest
income of $1.1 billion; (v) all share-based compensation expense; (vi) gain on disposal of assets and other of $174 million; (vii) transition activity
associated with our former Consumer Healthcare business of $26 million in income; and (viii) acquisition-related costs of $11 million.
In 2006, Corporate/Other includes: (i) significant impacts of purchase accounting for acquisitions of $4.1 billion, including acquired in-process
research and development, intangible asset amortization and other charges; (ii) restructuring charges and implementation costs associated with our
cost-reduction initiatives of $2.1 billion; (iii) all share-based compensation expense; (iv) net interest income of $437 million; (v) impairment of the
Depo-Provera intangible asset of $320 million; (vi) gain on disposals of investments and other of $173 million; (vii) a research and development
milestone due to us from sanofi-aventis of approximately $118 million; and (viii) acquisition-related costs of $27 million.
(d) Corporate assets are primarily cash and cash equivalents, short-term investments and long-term investments and loans.
(e) Certain production facilities are shared by various segments. Property, plant and equipment, as well as capital additions and depreciation, are
allocated based on estimates of physical production.
(f) Corporate/Other includes non-cash charges associated with purchase accounting related to intangible asset amortization of $2.5 billion in 2008,
$3.0 billion in 2007 and $3.2 billion in 2006.
2008 Financial Report 91