Pfizer 2011 Annual Report Download - page 77

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
Any settlements or statute of limitations expirations could result in a significant decrease in our uncertain tax positions. We estimate that it
is reasonably possible that within the next twelve months, our gross unrecognized tax benefits, exclusive of interest, could decrease by as
much as $500 million, as a result of settlements with taxing authorities or the expiration of the statute of limitations. Our assessments are
based on estimates and assumptions that have been deemed reasonable by management, but our estimates of unrecognized tax benefits
and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially affect our
financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete items in the
period of resolution. Finalizing audits with the relevant taxing authorities can include formal administrative and legal proceedings, and, as a
result, it is difficult to estimate the timing and range of possible change related to our uncertain tax positions, and such changes could be
significant.
6. Other Comprehensive Income/(Loss)
The components and changes in Accumulated other comprehensive income/(loss) follow:
NET UNREALIZED GAINS/(LOSSES) BENEFIT PLANS
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME/(LOSS)(MILLIONS OF DOLLARS)
CURRENCY
TRANSLATION
ADJUSTMENT
AND OTHER
DERIVATIVE
FINANCIAL
INSTRUMENTS
AVAILABLE
FOR-SALE
SECURITIES
ACTUARIAL
GAINS/
(LOSSES)
PRIOR
SERVICE
(COSTS)/
CREDITS AND
OTHER
Balance, January 1, 2009 $(1,389) $ 28 $ (86) $(3,132) $ 10 $(4,569)
Other comprehensive income/(loss)—
Pfizer Inc.(a):
Foreign currency translation
adjustments 4,978 — — — — 4,978
Unrealized holding gains — 291 576 — — 867
Reclassification adjustments to
income(b) 5 (299) (143) — — (437)
Actuarial gains/(losses) and other
benefit plan items — — — (701) 154 (547)
Amortization of actuarial losses and
other benefit plan items — — — 291 (6) 285
Curtailments and settlements—net — — — 390 (5) 385
Other 2 — — (196) (3) (197)
Income taxes (46) (14) (78) (19) (56) (213)
5,121
Balance, December 31, 2009 3,550 6 269 (3,367) 94 552
Other comprehensive income/(loss)—
Pfizer Inc.(a):
Foreign currency translation
adjustments (3,544) — — — — (3,544)
Unrealized holding gains/(losses) — (1,043) 7 — — (1,036)
Reclassification adjustments to
income(b) (7) 702 (141) — — 554
Actuarial gains/(losses) and other
benefit plan items — — — (1,426) 550 (876)
Amortization of actuarial losses and
other benefit plan items — — — 262 (42) 220
Curtailments and settlements—net — — — 266 (49) 217
Other 5 — — 88 5 98
Income taxes 165 127 22 230 (169) 375
(3,992)
Balance, December 31, 2010 169 (208) 157 (3,947) 389 (3,440)
Other comprehensive income/(loss)––
Pfizer Inc.(a):
Foreign currency translation
adjustments 837 — — — — 837
Unrealized holding losses — (502) (143) — — (645)
Reclassification adjustments to
income(b) (127) 239 15 — — 127
Actuarial gains/(losses) and other
benefit plan items — — — (2,459) 106 (2,353)
Amortization of actuarial losses and
other benefit plan items — — — 284 (69) 215
Curtailments and settlements—net — — — 355 (91) 264
Other 4 — — (100) 3 (93)
Income taxes 61 110 17 747 24 959
(689)
Balance, December 31, 2011 $ 944 $ (361) $ 46 $(5,120) $ 362 $(4,129)
(a) Amounts do not include adjustments attributable to noncontrolling interests of $45 million loss in 2011, $5 million income in 2010 and $6 million income in
2009.
(b) The currency translation adjustments reclassified to income resulted from the sale of legal entities.
Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries.
76 2011 Financial Report