Pfizer 2010 Annual Report Download - page 113

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
(c) Segment profit/(loss) equals Income from continuing operations before provision for taxes on income. Certain costs are included in Corporate/Other
only (see note (b) above). This methodology is utilized by management to evaluate our businesses.
(d) In 2010, Corporate/Other includes: (i) significant impacts of purchase accounting for acquisitions of $8.3 billion, including intangible asset
amortization and charges related to fair value adjustments of inventory acquired as part of our acquisition of Wyeth and sold during the period;
(ii) restructuring and acquisition-related costs of $4.0 billion, related to our acquisition of Wyeth; (iii) intangible asset impairments of $2.1 billion
primarily related to certain intangible assets acquired as part of our acquisition of Wyeth and to one of our products, Thelin (see Note 3B. Other
Significant Transactions and Events: Asset Impairment Charges); (iv) Wyeth-related inventory write-off of $212 million (which includes a purchase
accounting fair value adjustment of $104 million), primarily related to Biopharmaceutical inventory; (v) an additional $1.3 billion charge for asbestos
litigation related to our wholly owned subsidiary Quigley Company, Inc.; (vi) all share-based compensation expense and (vii) net interest expense of
$1.4 billion.
In 2009, Corporate/Other includes: (i) significant impacts of purchase accounting for acquisitions of $3.8 billion, including intangible asset amor-
tization and charges related to fair value adjustments of inventory acquired as part of our acquisition of Wyeth and sold during the period;
(ii) restructuring and acquisition-related costs of $4.3 billion, primarily related to our acquisition of Wyeth; (iii) all share-based compensation
expense; (iv) a gain of $482 million related to ViiV (see Note 3E. Other Significant Transactions and Events: Equity-Method Investments); (v) net
interest expense of $487 million; and (vi) an impairment of $298 million associated with certain materials used in our research and development
activities that were no longer considered recoverable.
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 related to the resolution of certain investigations concerning Bextra
and various other products, as well as certain other investigations, and charges of approximately $900 million associated with the resolution of cer-
tain litigation involving our NSAID pain medicines; (iv) all share-based compensation expense; (v) net interest income of $772 million; (vi) asset
impairment charges of $213 million; and (vii) acquisition-related costs of $49 million.
Substantially all of the restructuring charges recorded in Corporate/Other in 2010, 2009 and 2008 are associated with our Biopharmaceutical seg-
ment.
Segment Assets, Property, Plant and Equipment Additions, and Depreciation and Amortization
Additional details follow:
YEAR ENDED/AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2010(a) 2009(a) 2008
Identifiable assets
Biopharmaceutical $123,560 $140,008 $ 60,591
Diversified 18,255 19,470 2,808
Discontinued operations/Held for sale 561 496 148
Corporate/Other(b), (c) 52,638 52,975 47,601
Total identifiable assets $195,014 $212,949 $111,148
Property, plant and equipment additions(d)
Biopharmaceutical $ 1,263 $ 985 $ 1,351
Diversified 160 147 265
Corporate/Other(b) 90 73 85
Total property, plant and equipment additions $ 1,513 $ 1,205 $ 1,701
Depreciation and amortization(d)
Biopharmaceutical $ 2,731 $ 1,672 $ 2,223
Diversified 183 113 108
Corporate/Other(b), (e) 5,573 2,972 2,759
Total depreciation and amortization $ 8,487 $ 4,757 $ 5,090
(a) Reflects legacy Wyeth amounts for a full year in 2010. 2009 reflects legacy Wyeth amounts commencing on the Wyeth acquisition date, October 15,
2009.
(b) Corporate/Other includes Pfizer CentreSource, which includes contract manufacturing and bulk pharmaceutical chemical sales.
(c) Assets included within Corporate/Other are primarily cash and cash equivalents, short-term investments, long-term investments and loans and tax
assets.
(d) Certain production facilities are shared. Property, plant and equipment, as well as capital additions and depreciation, are allocated based on
estimates of physical production.
(e) Corporate/Other includes non-cash charges associated with purchase accounting related to intangible asset amortization of $5.3 billion in 2010,
$2.7 billion in 2009 and $2.5 billion in 2008.
2010 Financial Report 111