Pfizer 2008 Annual Report Download - page 65

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Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
8. Other Comprehensive Income/(Expense)
Changes, net of tax, in accumulated other comprehensive income/(expense) follow:
(MILLIONS OF DOLLARS)
CURRENCY
TRANSLATION
ADJUSTMENT
AND OTHER
NET UNREALIZED
GAINS/(LOSSES) BENEFIT PLANS
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME/
(EXPENSE)
DERIVATIVE
FINANCIAL
INSTRUMENTS
AVAILABLE-
FOR-SALE
SECURITIES
ACTUARIAL
GAINS/
(LOSSES)
PRIOR
SERVICE
(COSTS)/
CREDITS
AND
OTHER
MINIMUM
PENSION
LIABILITY
Balance, January 1, 2006 $ 1,113 $(107) $ 83 $ — $ — $(610) $ 479
Other comprehensive income:
Foreign currency translation adjustments 1,104 — — — — — 1,104
Unrealized holding gains — 126 63 — — — 189
Reclassification adjustments to income(a) (40) 5 (64) — — — (99)
Other (3) — — — — (16) (19)
Income taxes 53 (50) 14 — — — 17
1,192
Adoption of new accounting standard, net of
tax(b) — — — (2,739) (27) 626 (2,140)
Balance, December 31, 2006 2,227 (26) 96 (2,739) (27) — (469)
Other comprehensive income:
Foreign currency translation adjustments 1,422 — — — — — 1,422
Unrealized holding gains/(losses) — 3 (43) — — — (40)
Reclassification adjustments to income(a) (96) 3 (8) — — — (101)
Actuarial gains and other benefit plan items — — — 1,374 11 — 1,385
Amortization of actuarial losses and other
benefit plan items — — — 248 7 — 255
Curtailments and settlements—net — — — 268 (5) — 263
Other 6 — — (62) (6) — (62)
Income taxes 313 (12) 9 (656) (8) — (354)
2,768
Balance, December 31, 2007 3,872 (32) 54 (1,567) (28) — 2,299
Other comprehensive expense:
Foreign currency translation adjustments (5,898) — — — — — (5,898)
Unrealized holding gains/(losses) — 69 (193) — — — (124)
Reclassification adjustments to income(a) (2) — (20) — — — (22)
Actuarial gains/(losses) and other benefit plan
items — — — (3,098) 22 — (3,076)
Amortization of actuarial losses and other
benefit plan items — — — 130 3 — 133
Curtailments and settlements—net — — — 280 3 — 283
Other 10 — — 129 35 — 174
Income taxes 629 (9) 73 994 (25) — 1,662
(6,868)
Balance, December 31, 2008 $(1,389) $ 28 $ (86) $(3,132) $ 10 $ — $(4,569)
(a) The currency translation adjustments reclassified to income result from the sale of businesses.
(b) Includes pre-tax amounts for Actuarial losses of $4.3 billion and Prior service costs/(credits) and other of $27 million. See also Note 13A. Pension and Postretirement
Benefit Plans and Defined Contribution Plans: Adoption of New Accounting Standard.
Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries.
As of December 31, 2008, we estimate that we will reclassify into 2009 income the following pre-tax amounts currently held in Accumulated other
comprehensive income/(expense): virtually all of the unrealized holding gains on derivative financial instruments; $302 million of actuarial losses
related to benefit plan obligations and plan assets and other benefit plan items; and $6 million of prior service credits related primarily to benefit plan
amendments.
2008 Financial Report 63