Pfizer (PFE) 10-Q 13 May 10 2010 Q1 Quarterly report Financial data

Document Information

Document Information
	3 Months Ended Apr. 04, 2010
Document Information [Line Items]
Document type	10-Q
Amendment flag	false
Document period end date	2010-04-04
Document fiscal year focus	2,010
Document fiscal period focus	Q1

Entity Information

Entity Information (USD $)
In Billions, except Share data	3 Months Ended Apr. 04, 2010	May. 10, 2010	Jun. 26, 2009
Entity Information [Line Items]
Entity registrant name	PFIZER INC
Entity central index key	0000078003
Current fiscal year end date	--12-31
Entity well known seasoned issuer	Yes
Entity voluntary filers	No
Entity current reporting status	Yes
Entity filer category	Large Accelerated Filer
Entity public float			$102
Entity Listings [Line Items]
Entity common stock shares outstanding		8,066,133,809

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)
In Millions, except Per Share data	3 Months Ended Apr. 04, 2010		3 Months Ended Mar. 29, 2009
Revenues	$16,750		$10,867
Costs and expenses:
Cost of sales [1]	4,306	[1]	1,408	[1]
Selling, informational and administrative expenses [1]	4,436	[1]	2,876	[1]
Research and development expenses [1]	2,226	[1]	1,705	[1]
Amortization of intangible assets	1,409		578
Acquisition-related in-process research and development charges	74
Restructuring charges and certain acquisition-related costs	706		554
Other (income)/deductions - net	414		(57)
Income from continuing operations before provision for taxes on income	3,179		3,803
Provision for taxes on income	1,146		1,074
Income from continuing operations	2,033		2,729
Discontinued operations - net of tax	2		1
Net income before allocation to noncontrolling interests	2,035		2,730
Less: Net income attributable to noncontrolling interests	9		1
Net income attributable to Pfizer Inc.	$2,026		$2,729
Earnings per common share - basic:
Income from continuing operations attributable to Pfizer Inc. common shareholders	0.25		0.41
Discontinued operations - net of tax	$0		$0
Net income attributable to Pfizer Inc. common shareholders	0.25		0.41
Earnings per common share - diluted:
Income from continuing operations attributable to Pfizer Inc. common shareholders	0.25		0.4
Discontinued operations - net of tax	$0		$0
Net income attributable to Pfizer Inc. common shareholders	0.25		0.4
Weighted-average shares used to calculate earnings per common share:
Basic	8,061		6,723
Diluted	8,101		6,753
Cash dividends paid per common share	0.18		0.32
[1]Exclusive of amortization of intangible assets, except as disclosed in Note 8B. Goodwill and Other Intangible Assets: Other Intangible Assets.

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Millions	Apr. 04, 2010		Dec. 31, 2009
Assets
Cash and cash equivalents	$1,759	[1]	$1,978	[2]
Short-term investments	15,503	[1]	23,991	[2]
Accounts receivable, less allowance for doubtful accounts	13,611	[1]	14,645	[2]
Short-term loans	919	[1]	1,195	[2]
Inventories	10,132	[1]	12,403	[2]
Current deferred tax assets and other current assets	7,502	[1]	6,962	[2]
Assets held for sale	490	[1]	496	[2]
Total current assets	49,916	[1]	61,670	[2]
Long-term investments and loans	12,081	[1]	13,122	[2]
Property, plant and equipment, less accumulated depreciation	21,651	[1]	22,780	[2]
Goodwill	42,648	[1]	42,376	[2]
Identifiable intangible assets, less accumulated amortization	64,480	[1]	68,015	[2]
Noncurrent deferred tax assets and other noncurrent assets	4,337	[1]	4,986	[2]
Total assets	195,113	[1]	212,949	[2]
Liabilities and Shareholders' Equity
Short-term borrowings, including current portion of long-term debt	7,769	[1]	5,469	[2]
Accounts payable	3,028	[1]	4,370	[2]
Dividends payable	1	[1]	1,454	[2]
Income taxes payable	765	[1]	10,107	[2]
Accrued compensation and related items	2,060	[1]	2,242	[2]
Current deferred tax liabilities and other current liabilities	12,301	[1]	13,583	[2]
Total current liabilities	25,924	[1]	37,225	[2]
Long-term debt	38,281	[1]	43,193	[2]
Pension benefit obligations	6,119	[1]	6,392	[2]
Postretirement benefit obligations	3,239	[1]	3,243	[2]
Noncurrent deferred tax liabilities	17,460	[1]	17,839	[2]
Other taxes payable	8,338	[1]	9,000	[2]
Other noncurrent liabilities	5,670	[1]	5,611	[2]
Total liabilities	105,031	[1]	122,503	[2]
Preferred stock	58	[1]	61	[2]
Common stock	443	[1]	443	[2]
Additional paid-in capital	70,456	[1]	70,497	[2]
Employee benefit trusts	(89)	[1]	(333)	[2]
Treasury stock	(21,697)	[1]	(21,632)	[2]
Retained earnings	42,429	[1]	40,426	[2]
Accumulated other comprehensive income/(loss)	(1,941)	[1]	552	[2]
Total Pfizer Inc. shareholders' equity	89,659	[1]	90,014	[2]
Equity attributable to noncontrolling interests	423	[1]	432	[2]
Total shareholders' equity	90,082	[1]	90,446	[2]
Total liabilities and shareholders' equity	$195,113	[1]	$212,949	[2]
[1]Unaudited.
[2]Condensed from audited financial statements.

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Millions	3 Months Ended Apr. 04, 2010		3 Months Ended Mar. 29, 2009
Operating Activities:
Net income before allocation to noncontrolling interests	$2,035		$2,730
Adjustments to reconcile net income before allocation to noncontrolling interests to net cash (used in)/provided by operating activities:
Depreciation and amortization	2,051		1,008
Share-based compensation expense	138		71
Acquisition-related in-process research and development charges	74
Deferred taxes from continuing operations	840		533
Other non-cash adjustments	319		(296)
Changes in assets and liabilities, net of acquisitions and divestitures	(11,817)		(899)
Net cash (used in)/provided by operating activities	(6,360)		3,147
Investing Activities:
Purchases of property, plant and equipment	(305)		(253)
Purchases of short-term investments	(2,178)		(17,724)
Proceeds from redemptions and sales of short-term investments	11,388		6,711
Purchases of long-term investments	(858)		(3,442)
Proceeds from redemptions and sales of long-term investments	1,127		889
Other investing activities	220		185
Net cash provided by/(used in) investing activities	9,394		(13,634)
Financing Activities:
Increase in short-term borrowings	1,892		10,774
Principal payments on short-term borrowings	(3,663)		(12,100)
Proceeds from issuances of long-term debt	2		13,392
Principal payments on long-term debt	(9)		(303)
Cash dividends paid	(1,441)		(2,133)
Other financing activities	8		5
Net cash (used in)/provided by financing activities	(3,211)		9,635
Effect of exchange-rate changes on cash and cash equivalents	(42)		(23)
Net decrease in cash and cash equivalents	(219)		(875)
Cash and cash equivalents at beginning of period	1,978	[1]	2,122
Cash and cash equivalents at end of period	1,759	[2]	1,247
Supplemental Cash Flow Information - Cash paid during the period for:
Income taxes	10,547		454
Interest	$792		$84
[1]Condensed from audited financial statements.
[2]Unaudited.

Basis of Presentation

Basis of Presentation
	3 Months Ended Apr. 04, 2010
Basis of Presentation [Abstract]
Basis of Presentation [Text Block]	Note 1. Basis of Presentation We prepared the condensed consolidated financial statements following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (U.S. GAAP) can be condensed or omitted. Balance sheet amounts and operating results for subsidiaries operating outside the U.S. are as of and for the three-month periods ended February 28, 2010, and February 22, 2009. On October 15, 2009, we completed our acquisition of Wyeth and, commencing from the acquisition date, our financial statements include the assets, liabilities, operating results and cash flows of Wyeth. As a result, legacy Wyeth operations are reflected in our results of operations and cash flows for the first quarter of 2010, but not for the first quarter of 2009. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year. We are responsible for the unaudited financial statements included in this document.The financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2009.

Adoption of New Accounting Poli

Adoption of New Accounting Policies
	3 Months Ended Apr. 04, 2010
Adoption of New Accounting Policies [Abstract]
Adoption of New Accounting Policies [Text Block]	Note 2. Adoption of New Accounting Policies The provisions of the following new accounting standards were adopted as of January 1, 2010 and did not have a significant impact on our consolidated financial statements: An amendment to the recognition and measurement guidance for the transfers of financial assets. An amendment to the guidelines for determining the primary beneficiary in a variable interest entity.

Acquisition of Wyeth

Acquisition of Wyeth
	3 Months Ended Apr. 04, 2010
Acquisition of Wyeth [Abstract]
Acquisition of Wyeth [Text Block]	Note 3. Acquisition of Wyeth On October 15, 2009 (the acquisition date), we acquired all of the outstanding equity of Wyeth in a cash-and-stock transaction, valued at the acquisition date at approximately $68 billion. While Wyeth now is a wholly-owned subsidiary of Pfizer, the merger of local Pfizer and Wyeth entities may be pending or delayed in various international jurisdictions and integration in these jurisdictions is subject to completion of various local legal and regulatory obligations. Recording of Assets Acquired and Liabilities Assumed The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date as well as adjustments made in the first quarter of 2010 to the amounts initially recorded in 2009 (measurement period adjustments). The measurement period adjustments did not have a significant impact on our consolidated statements of income, balance sheets or cash flows in any period and, therefore, we have not retrospectively adjusted our financial statements. Certain estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as we obtain the information necessary to complete the analyses, but no later than one year from the acquisition date. (millions of dollars) Amounts Recognized as of Acquisition Date (as previously reported) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as adjusted) Working capital, excluding inventories $ 16,342 $ $ 16,342 Inventories 8,388 (167 ) 8,221 Property, plant and equipment 10,054 (171 ) 9,883 Identifiable intangible assets, excluding in-process research and development (a) 37,595 (452 ) 37,143 In-process research and development (a) 14,918 (956 ) 13,962 Other noncurrent assets 2,394 2,394 Long-term debt (11,187 ) (11,187 ) Benefit obligations (3,211 ) (3,211 ) Net tax accounts (24,773 ) 761 (24,012 ) Other noncurrent liabilities (1,908 ) (1,908 ) Total identifiable net assets 48,612 (985 ) 47,627 Goodwill 19,954 985 20,939 Net assets acquired 68,566 68,566 Less: Amounts attributable to noncontrolling interests (330 ) (330 ) Total consideration transferred $ 68,236 $ $ 68,236 (a) The measurement period adjustments for Identifiable intangible assets reflect changes in the estimated fair value of certain acquired intangibles, principally in-process research and development assets, primarily to better reflect market participant assumptions about facts and circumstances existing as of the acquisition date.The measurement period adjustments did not result from intervening events subsequent to the acquisition date. The recorded amounts are provisional and subject to change. Specifically, the following items are subject to change: Amounts for intangibles and inventory, pending finali

Cost-Reduction Initiatives and

Cost-Reduction Initiatives and Acquisition-Related Costs
	3 Months Ended Apr. 04, 2010
Cost Reduction Initiatives and Acquisition Related Costs [Abstract]
Cost-Reduction Initiatives and Acquistion-Related Costs [Text Block]	Note 4. Cost-Reduction Initiatives and Acquisition-Related Costs We have incurred significant costs in connection with our cost-reduction initiatives (several programs initiated since 2005) and our acquisition of Wyeth on October 15, 2009. Since the acquisition of Wyeth, our cost-reduction initiatives that were announced on January 26, 2009, but not completed as of December 31, 2009, have been incorporated into a comprehensive plan to integrate Wyeth's operations, generate cost savings and capture synergies across the combined company. We are focusing our efforts on achieving an appropriate cost structure for the combined company. We incurred the following costs in connection with all of our cost-reduction initiatives and the acquisition of Wyeth: Three Months Ended (millions of dollars) April 4, 2010 Mar. 29, 2009 Transaction costs(a) $ 9 $ 369 Integration costs(b) 208 28 Restructuring charges(c) 489 157 Restructuring charges and certain acquisition-related costs 706 554 Additional depreciation--asset restructuring(d) 93 90 Implementation costs(e) -- 84 Total $ 799 $ 728 (a) Transaction costs represent external costs directly related to effecting the acquisition of Wyeth and primarily include expenditures for banking, legal, accounting and other similar services. Substantially all of the costs incurred in the first quarter of 2009 were fees related to a $22.5 billion bridge term loan credit agreement entered into with certain financial institutions on March 12, 2009 to partially fund our acquisition of Wyeth. The bridge term loan credit agreement was terminated in June 2009 as a result of our issuance of approximately $24.0 billion of senior unsecured notes in the first half of 2009. (b) Integration costs represent external, incremental costs directly related to integrating Wyeth and primarily include expenditures for consulting and systems integration. (c) Restructuring charges include the following: Costs Incurred Three Months Ended Activity Accrual (millions of dollars) April 4, 2010 Mar. 29, 2009 2005-2010 Through April 4, 2010(1) As of April 4, 2010(2) Employee termination costs $ 458 $ 135 $ 8,179 $ 5,276 $ 2,903 Asset impairments 6 18 1,458 1,458 -- Other 25 4 735 631 104 Total restructuring charges $ 489 $ 157 $ 10,372 $ 7,365 $ 3,007 (1) Includes adjustments for foreign currency translation. (2) Included in Current deferred tax liabilities and other current liabilities ($2.0 billion) and Other noncurrent liabilities($1.0 billion). In the first quarter of 2010, the restructuring charges are related to the integration of Wyeth.From the beginning of our cost-reduction initiatives in 2005 through April 4, 2010, Employee termination costs represent the expected reduction of the workforce by approximately 45,400 employees, mainly in manufacturing, sales and r

Financial Instruments

Financial Instruments
	3 Months Ended Apr. 04, 2010
Financial Instruments [Abstract]
Financial Instruments [Text Block]	Note 5. Financial Instruments A. Selected Financial Assets and Liabilities Information about certain of our financial assets and liabilities follows: (millions of dollars) April 4, 2010 Dec. 31, 2009 Selected financial assets measured at fair value on a recurring basis (a) : Trading securities (b) $ 168 $ 184 Available-for-sale debt securities(c) 23,787 32,338 Available-for-sale money market funds(d) 1,484 2,569 Available-for-sale equity securities, excluding money market funds(c) 243 281 Derivative financial instruments in receivable positions(e): Foreign currency swaps 400 798 Interest rate swaps 315 276 Foreign currency forward-exchange contracts 284 502 Total 26,681 36,948 Other selected financial assets(f): Short-term loans, carried at cost (g) 919 1,195 Held-to-maturity debt securities, carried at amortized cost(c) 642 812 Private equity securities, carried at cost or equity method (h) 858 811 Long-term loans, carried at cost(g) 782 784 Total 3,201 3,602 Total selected financial assets(i) $ 29,882 $ 40,550 Financial liabilities measured at fair value on a recurring basis(a): Derivative financial instruments in a liability position(j): Foreign currency forward-exchange contracts $ 351 $ 237 Foreign currency swaps 221 528 Interest rate swaps 73 25 Total 645 790 Other financial liabilities (k): Short-term borrowings, carried at historical proceeds, as adjusted(f), (l) 7,769 5,469 Long-term debt, carried at historical proceeds, as adjusted(m), (n) 38,281 43,193 Total 46,050 48,662 Total selected financial liabilities $ 46,695 $ 49,452 (a) Fair values are determined based on valuation techniques categorized as follows: Level 1 means the use of quoted prices for identical instruments in active markets; Level 2 means the use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable; Level 3 means the use of unobservable inputs. Virtually all of our financial assets and liabilities measured at fair value on a recurring basis use Level 2 inputs in the calculation of fair value, except that included in available-for-sale equity securities, excluding money market funds, are $93 million as of April 4, 2010 and $77 million as of December 31, 2009 of investments that use Level 1 inputs in the calculation of fair value. None of our financial assets and liabilities measured at fair value on a recurring basis are valued using Level 3 inputs as of April 4, 2010 or December 31, 2009. (b) Trading securities are held in trust for legacy Pharmacia severance benefits. (c) Gross unrealized gains and losses are not significant. (d) Includes approximately $1.2 billion of money market funds held in escrow to secure ce

Comprehensive Income

Comprehensive Income (Loss)
	3 Months Ended Apr. 04, 2010
Comprehensive Income (Loss) [Abstract]
Comprehensive Income/(Loss) [Text Block]	Note 6. Comprehensive Income/(Loss) The components of comprehensive income/(loss) follow: Three Months Ended (millions of dollars) April 4, 2010 Mar. 29, 2009 Net income before allocation to noncontrolling interests $ 2,035 $ 2,730 Other comprehensive income/(loss): Currency translation adjustment and other (2,747 ) (384 ) Net unrealized gains/(losses) on derivative financial instruments 134 (23 ) Net unrealized gains/(losses) on available-for-sale securities (15 ) 145 Benefit plan adjustments 117 159 Total other comprehensive loss (2,511 ) (103 ) Total comprehensive (loss)/income before allocation to noncontrolling interests (476 ) 2,627 Less: Comprehensive (loss)/income attributable to noncontrolling interests (9) 2 Comprehensive (loss)/income attributable to Pfizer Inc. $ (467 ) $ 2,625

Inventories

Inventories
	3 Months Ended Apr. 04, 2010
Inventories [Abstract]
Inventories [Text Block]	Note 7. Inventories The components of inventories follow: (millions of dollars) April 4, 2010 Dec. 31, 2009 Finished goods $ 4,535 $ 5,249 Work-in-process 4,233 5,776 Raw materials and supplies 1,364 1,378 Total inventories(a) $ 10,132 $ 12,403 (a) The decrease in total inventories is primarily due to the inventory sold during the first quarter of 2010 that was acquired from Wyeth and had been recorded at fair value, as well as operational reductions and the impact of foreign exchange. Certain amounts of inventories are in excess of one year's supply.These excess amounts are primarily attributable to biologics inventory acquired from Wyeth and recorded at fair value and the quantities are generally consistent with the normal operating cycle of such inventory. There are no recoverability issues associated with these quantities.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Apr. 04, 2010
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets [Text Block]	Note 8. Goodwill and Other Intangible Assets A. Goodwill The changes in the carrying amount of goodwill for the three months ended April 4, 2010, follow: (millions of dollars) Biopharmaceutical Diversified Other Total Balance, December 31, 2009(a) $ 22,165 $ 173 $ 20,038 $ 42,376 Additions -- 18 985 (b) 1,003 Other(c) (570 ) (3 ) (158 ) (731 ) Balance, April 4, 2010 $ 21,595 $ 188 $ 20,865 $ 42,648 (a) The Other goodwill relates to our acquisition of Wyeth and is subject to change until we complete the recording of the assets acquired and liabilities assumed from Wyeth (see Note 3. Acquisition of Wyeth). The allocation of Wyeth goodwill among the Biopharmaceutical and Diversified segments has not yet been completed, but will be completed within one year of the acquisition date. (b) Reflects the impact of measurement period adjustments (see Note 3. Acquisition of Wyeth). (c) Primarily reflects the impact of foreign exchange. B. Other Intangible Assets The components of identifiable intangible assets, primarily included in our Biopharmaceutical segment, follow: April 4, 2010 December 31, 2009 (millions of dollars) Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, less Accumulated Amortization Finite-lived intangible assets: Developed technology rights $ 68,416 $ (22,417 ) $ 45,999 $ 68,870 $ (21,223 ) $ 47,647 Brands 1,627 (563 ) 1,064 1,637 (535 ) 1,102 License agreements 620 (148 ) 472 622 (119 ) 503 Trademarks 107 (69 ) 38 113 (73 ) 40 Other 425 (228 ) 197 488 (231 ) 257 Total amortized finite-lived intangible assets 71,195 (23,425 ) 47,770 71,730 (22,181 ) 49,549 Indefinite-lived intangible assets: Brands 12,462 -- 12,462 12,562 -- 12,562 In-process research and development (a) 4,178 -- 4,178 5,834 -- 5,834 Trademarks 70 -- 70 70 -- 70 Total indefinite-lived intangible assets 16,710 -- 16,710 18,466 -- 18,466 Total identifiable intangible assets(b) $ 87,905 $ (23,425 ) $ 64,480 $ 90,196 $ (22,181 ) $ 68,015 (a) Decrease is primarily related to the impact of measurement period adjustments (see Note 3. Acquisition of Wyeth). (b) Decrease is primarily related to amortization of finite-lived intangible assets, the impact of measurement period adjustments (see Note 3. Acquisition of Wyeth) and the impact of foreign exchange. Amortization

Pension and Postretirement Bene

Pension and Postretirement Benefit Plans
	3 Months Ended Apr. 04, 2010
Pension and Postretirement Benefit Plans [Abstract]
Pension and Postretirement Benefit Plans [Text Block]	Note 9. Pension and Postretirement Benefit Plans The components of net periodic benefit costs of the U.S. and international pension plans and the postretirement plans, which provide medical and life insurance benefits to retirees and their eligible dependents, follow: Pension Plans U.S. Qualified U.S. Supplemental (Non-Qualified) International Postretirement Plans (millions of dollars) April 4, 2010 Mar. 29, 2009 April 4, 2010 Mar. 29, 2009 April 4, 2010 Mar. 29, 2009 April 4, 2010 Mar. 29, 2009 Three Months Ended: Service cost $ 94 $ 59 $ 8 $ 5 $ 60 $ 45 $ 22 $ 8 Interest cost 191 119 19 13 111 78 54 30 Expected return on plan assets (202 ) (118 ) -- -- (112 ) (86 ) (8 ) (6 ) Amortization of: Actuarial losses 38 57 7 8 17 6 -- 4 Prior service costs/(credits) -- 1 (1 ) (1 ) (1 ) (1 ) (4 ) (1 ) Curtailments and settlements--net (33 ) 24 (1 ) 7 1 2 -- 5 Special termination benefits 14 13 90 -- 1 1 6 12 Net periodic benefit costs $ 102 $ 155 $ 122 $ 32 $ 77 $ 45 $ 70 $ 52 The decrease in net periodic benefit costs in the first three months of 2010 compared to the first three months of 2009 for our U.S. qualified plans was primarily driven by curtailment gains and lower settlement charges associated with Wyeth-related restructuring initiatives.The acquisition of Wyeth contributed to the increase in certain components of net periodic benefit costs, such as service cost and interest cost, offset by related expected return on plan assets. The increase in net periodic benefit costs in the first three months of 2010, compared to the first three months of 2009 for our U.S. supplemental (non-qualified) pension plans was primarily driven by special termination benefits recognized for certain executives as part of Wyeth-related restructuring initiatives. For the first quarter of 2010, we contributed from our general assets $87 million to our international pension plans, $61 million to our U.S. supplemental (non-qualified) pension plans and $60 million to our postretirement plans. Contributions to our U.S. qualified pension plans in the first quarter of 2010 were not significant. During 2010, we expect to contribute from our general assets, a total of $439 million to our international pension plans, $257 million to our postretirement plans, $205 million to our U.S. supplemental (non-qualified) pension plans and $7 million to our U.S. qualified pension plans. Contributions expected to be made for 2010 are inclusive of amounts contributed during the first quarter of 2010. The international pension plan, postretirement plan and U.S. supplemental (non-qualified) pension plan contributions from our general ass

Earnings Per Share Attributable

Earnings Per Share Attributable to Common Shareholders
	3 Months Ended Apr. 04, 2010
Earnings Per Share Attributable to Common Shareholders [Abstract]
Earnings Per Share Attributable to Common Shareholders [Text Block]	Note 10. Earnings Per Share Attributable to Common Shareholders Basic and diluted earnings per share (EPS) were computed using the following data: Three Months Ended (millions) April 4, 2010 Mar. 29, 2009 EPS Numerator--Basic: Income from continuing operations attributable to Pfizer Inc. $ 2,024 $ 2,728 Less: Preferred stock dividends--net of tax 1 -- Income from continuing operations attributable to Pfizer Inc. common shareholders 2,023 2,728 Discontinued operations--net of tax 2 1 Net income attributable to Pfizer Inc. common shareholders $ 2,025 $ 2,729 EPS Denominator--Basic: Weighted-average number of common shares outstanding 8,061 6,723 EPS Numerator--Diluted: Income from continuing operations attributable to Pfizer Inc. common shareholders $ 2,024 $ 2,728 Discontinued operations--net of tax 2 1 Net income attributable to Pfizer Inc. common shareholders $ 2,026 $ 2,729 EPS Denominator--Diluted: Weighted-average number of common shares outstanding 8,061 6,723 Common-share equivalents: stock options, stock issuable under employee compensation plansand convertible preferred stock 40 30 Weighted-average number of common shares outstanding and common-share equivalents 8,101 6,753 Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a) 366 475 (a) These common stock equivalents were outstanding during the first quarters of 2010 and 2009, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.

Segment Information

Segment Information
	3 Months Ended Apr. 04, 2010
Segment Information [Abstract]
Segment Information [Text Block]	Note 11. Segment Information We operate in the following two distinct commercial organizations, which constitute our two business segments: Biopharmaceutical consists of the Primary Care, Specialty Care, Oncology, Established Products and Emerging Markets customer-focused units and includes products that prevent and treat cardiovascular and metabolic diseases, central nervous system disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer, eye diseases and endocrine disorders, among others. Biopharmaceutical's segment profit includes costs related to research and development, manufacturing, and sales and marketing activities that are associated with the products in our Biopharmaceutical segment. Diversified includes Animal Health products that prevent and treat diseases in livestock and companion animals, including vaccines, parasiticides and anti-infectives; Consumer Healthcare products that include over-the-counter healthcare products such as pain management therapies (analgesics and heat wraps), cough/cold/allergy remedies, dietary supplements, hemorrhoidal care and personal care items; Nutrition products such as infant and toddler nutritional products; and Capsugel, which represents our capsule products and services business. Diversified's segment profit includes costs related to research and development, manufacturing, and sales and marketing activities that are associated with the products in our Diversified segment. Segment profit/(loss) is measured based on income from continuing operations before provision for taxes on income and income attributable to noncontrolling interests. Certain costs, such as significant impacts of purchase accounting for acquisitions, restructuring and acquisition-related costs and costs related to our cost-reduction initiatives are included in Corporate/Other only. This methodology is utilized by management to evaluate our businesses. Each segment is managed separately and offers different products requiring different marketing and distribution strategies. Revenues and profit/(loss) by segment for the first quarters of 2010 and 2009 follow: Three Months Ended(a) (millions of dollars) April 4, 2010 Mar. 29, 2009 Revenues Biopharmaceutical $ 14,506 $ 10,102 Diversified 2,141 691 Corporate/Other(b) 103 74 Total revenues $ 16,750 $ 10,867 Segment profit/(loss)(c) Biopharmaceutical $ 7,912 $ 5,407 Diversified 510 163 Corporate/Other(b), (d) (5,243 ) (1,767 ) Total profit/(loss) $ 3,179 $ 3,803 (a) Includes revenues and profit/(loss) from legacy Wyeth products and operations for the three months ended April 4, 2010. Revenues and profit/(loss) from legacy Wyeth products and operations are not included in the three months ended March 29, 2009. Prior-period amounts for Capsugel, which were previously classified in Corporate/Other, are now classified in Diversified. (b) Corporate/Other includes Pfizer Centersource, which includes contract manufacturing and bulk pharmaceutical chemical

Taxes on Income

Taxes on Income
	3 Months Ended Apr. 04, 2010
Taxes on Income [Abstract]
Taxes on Income [Text Block]	Note 12. Taxes on Income Our effective tax rate for continuing operations was 36.0% for the first quarter of 2010, compared to 28.2% for the first quarter of 2009. The higher tax rate for the first quarter of 2010 is primarily the result of: higher amortization charges, primarily related to intangible assets acquired in connection with the acquisition of Wyeth, and the mix of jurisdictions in which those charges were incurred; the write-off of the deferred tax asset of approximately $270 million related to the Medicare Part D subsidy for retiree prescription drug coverage, resulting from changes in the U.S. healthcare legislation enacted in March 2010 concerning the tax treatment of that subsidy effective for tax years beginning after December 31, 2012; the expiration of the U.S. research tax credit; and the increase in non-deductible in-process research and development charges. These factors were partially offset by $410 million in tax benefits for the resolution of certain tax positions pertaining to prior years with various foreign tax authorities.