Pfizer 2009 Annual Report Download - page 81

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
The unfavorable change in our international plans’ projected benefit obligations funded status from $1.5 billion underfunded in the
aggregate as of December 31, 2008, to $2.5 billion underfunded in the aggregate as of December 31, 2009, was largely driven by
the acquisition of the Wyeth international pension plans, a 0.4 percentage-point increase in the average rate of compensation
increases and weakening of the U.S. dollar against the U.K. pound, euro and Japanese yen, somewhat offset by the increase in
plan assets due to investment gains earned from the securities market recovery during 2009. Outside the U.S., in general, we fund
our defined benefit plans to the extent that tax or other incentives exist and we have accrued liabilities on our consolidated balance
sheet to reflect those plans that are not fully funded.
The unfavorable change in our postretirement plans’ accumulated benefit obligations (ABO) funded status from $1.7 billion
underfunded in the aggregate as of December 31, 2008, to $3.4 billion underfunded in the aggregate as of December 31, 2009, was
largely driven by the acquisition of the Wyeth postretirement plans.
The ABO for all of our U.S. qualified pension plans were $11.4 billion in 2009 and $7.0 billion in 2008. The ABO for our U.S.
supplemental (non-qualified) pension plans was $1.2 billion in 2009 and $762 million in 2008. The ABO for our international pension
plans was $8.0 billion in 2009 and $5.3 billion in 2008.
The U.S. qualified pension plans loan securities to other companies. Such securities may be onward loaned, sold or pledged by the
other companies, but they may be required to be returned in a short period of time. We also require cash collateral from these
companies and a maintenance margin of 103% of the fair value of the collateral relative to the fair value of the loaned securities. As
of December 31, 2009, the fair value of collateral received was $722 million and as of December 31, 2008, the fair value of collateral
received was $572 million. The securities loaned continue to be included in the table above in Fair value of plan assets at end of
year.
Amounts recognized in our consolidated balance sheet follow:
AS OF DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
(MILLIONS OF DOLLARS) 2009 2008 2009 2008 2009 2008 2009 2008
Noncurrent assets(a) $—$— $— $— $ 146 $ 160 $— $—
Current liabilities(b) ——(203) (107) (58) (37) (120) (59)
Noncurrent liabilities(c) (2,601) (1,886) (1,165) (769) (2,626) (1,580) (3,243) (1,604)
Funded status $(2,601) $(1,886) $(1,368) $(876) $(2,538) $(1,457) $(3,363) $(1,663)
(a) Included primarily in Noncurrent deferred tax assets and other noncurrent assets.
(b) Included in Current deferred tax liabilities and other current liabilities.
(c) Included in Pension benefit obligations and Postretirement benefit obligations, as appropriate.
Amounts recognized in Accumulated other comprehensive income/(expense) follow:
AS OF DECEMBER 31,
PENSION PLANS
U.S. QUALIFIED
U.S. SUPPLEMENTAL
(NON-QUALIFIED) INTERNATIONAL
POSTRETIREMENT
PLANS
(MILLIONS OF DOLLARS) 2009 2008 2009 2008 2009 2008 2009 2008
Actuarial losses $(2,391) $(3,173) $(405) $(433) $(2,231) $(1,231) $(226) $(204)
Prior service (costs)/credits
and other 15 14 18 23 (23) (23) 173 29
Total $(2,376) $(3,159) $(387) $(410) $(2,254) $(1,254) $ (53) $(175)
The actuarial losses primarily represent the cumulative difference between the actuarial assumptions and actual return on plan
assets, changes in discount rates and plan experience. These actuarial losses are recognized in Accumulated other comprehensive
income/(expense) and are amortized into net periodic pension costs over an average period of 10.6 years for our U.S. qualified
plans, an average period of 9.8 years for our U.S. supplemental (non-qualified) plans and an average period of 14.6 years for our
international plans.
2009 Financial Report 79