Pfizer 2006 Annual Report Download - page 47

2006 Financial Report 45
Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
of business operations. For example, we entered into a number
of transition services agreements that will allow the buyer
sufficient time to prepare for the transfer of activities and to
limit the risk of business disruption. The nature, magnitude and
duration of the agreements vary depending on the specific
circumstances of the service, location and/or business need. The
agreements can include the following: manufacturing and
product supply, logistics, customer service, support of financial
processes, procurement, human resources, facilities
management, data collection and information services. Most
of these agreements extend for periods generally less than 24
months, but because of the inherent complexity of
manufacturing processes and the risk of product flow
disruption, the product supply agreements generally extend up
to 36 months.
For the period of time prior to the final transfer of these activities
to the buyer, we will continue to generate cash flows and to
report gross revenues, income and expense activity in
Discontinued operations—net of tax, although at a substantially
reduced level. After the transfer of these activities, these cash
flows and the income statement activity reported in Discontinued
operations—net of tax will be eliminated.
None of these agreements confers upon us the ability to
influence the operating and/or financial policies of the
Consumer Healthcare business under its new ownership.
•
In the third quarter of 2005, we sold the last of three European
generic pharmaceutical businesses, which we had included in
our Pharmaceutical segment, for 4.7 million euro
(approximately $5.6 million). This business became a part of
Pfizer in April 2003 in connection with our acquisition of
Pharmacia. We recorded a loss of $3 million ($2 million, net of
tax) in Gains on sales of discontinued operations—net of tax in
the consolidated statement of income for 2005.
•
In the first quarter of 2005, we sold the second of three
European generic pharmaceutical businesses, which we had
included in our Pharmaceutical segment, for 70 million euro
(approximately $93 million). This business became a part of
Pfizer in April 2003 in connection with our acquisition of
Pharmacia. We recorded a gain of $57 million ($36 million, net
of tax) in Gains on sales of discontinued operations—net of tax
in the consolidated statement of income for 2005. In addition,
we recorded an impairment charge of $9 million ($6 million, net
of tax) related to the third European generic business in Income
from discontinued operations—net of tax in the consolidated
statement of income for 2005.
•
In the fourth quarter of 2004, we sold the first of three
European generic pharmaceutical businesses, which we had
included in our Pharmaceutical segment, for 53 million euro
(approximately $65 million). This business became a part of
Pfizer in April 2003 in connection with our acquisition of
Pharmacia. In addition, we recorded an impairment charge of
$61 million ($37 million, net of tax), relating to a European
generic business which was later sold in 2005, and is included
in Income from discontinued operations—net of tax in the
consolidated statement of income for 2004.
•
In the third quarter of 2004, we sold certain non-core consumer
product lines marketed in Europe by our former Consumer
Healthcare business for 135 million euro (approximately $163
million) in cash. The majority of these products were small
brands sold in single markets only and included certain products
that became a part of Pfizer in April 2003 in connection with
the acquisition of Pharmacia. We recorded a gain of $58 million
($41 million, net of tax) in Gains on sales of discontinued
operations—net of tax in the consolidated statement of income
for 2004.
•
In the second quarter of 2004, we sold our surgical ophthalmic
business, which we had included in our Pharmaceutical
segment, for $450 million in cash. This business became a part
of Pfizer in April 2003 in connection with our acquisition of
Pharmacia. The results of this business were included in Income
from discontinued operations—net of tax.
•
In the second quarter of 2004, we sold our in-vitro allergy
and autoimmune diagnostics testing (Diagnostics) business,
which we had included in the Corporate/Other segment, for
$575 million in cash. This business became a part of Pfizer in
April 2003 in connection with our acquisition of Pharmacia. The
results of this business were included in Income from
discontinued operations—net of tax.