Pfizer 2010 Annual Report Download - page 119

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Financial Summary
Pfizer Inc. and Subsidiary Companies
YEAR ENDED/AS OF DECEMBER 31,
(MILLIONS, EXCEPT PER COMMON SHARE DATA) 2010(a) 2009(a) 2008 2007 2006
Revenues $ 67,809 $ 50,009 $ 48,296 $ 48,418 $ 48,371
Research and development expenses(b) 9,413 7,845 7,945 8,089 7,599
Other costs and expenses 45,635 26,932 27,349 28,234 25,586
Acquisition-related in-process research and development charges(c) 125 68 633 283 835
Restructuring charges and certain acquisition-related costs(d) 3,214 4,337 2,675 2,534 1,323
Income from continuing operations before provision for taxes on
income 9,422 10,827 9,694 9,278 13,028
Provision for taxes on income 1,124 2,197 1,645 1,023 1,992
Income from continuing operations before cumulative effect of a
change in accounting principles 8,298 8,630 8,049 8,255 11,036
Discontinued operations—net of tax—(loss)/income (9) 14 78 (69) 8,313
Less: Net income attributable to noncontrolling interests 32 9234212
Net income attributable to Pfizer Inc. $ 8,257 $ 8,635 $ 8,104 $ 8,144 $ 19,337
Effective tax rate—continuing operations 11.9% 20.3% 17.0% 11.0% 15.3%
Depreciation and amortization(e) $ 8,487 $ 4,757 $ 5,090 $ 5,200 $ 5,293
Property, plant and equipment additions(e) 1,513 1,205 1,701 1,880 2,050
Cash dividends paid 6,088 5,548 8,541 7,975 6,919
Working capital 31,859 24,445 16,067 25,014 25,559
Property, plant and equipment, less accumulated depreciation 19,123 22,780 13,287 15,734 16,632
Total assets 195,014 212,949 111,148 115,268 115,546
Long-term debt 38,410 43,193 7,963 7,314 5,546
Long-term capital(f) 145,323 151,478 68,662 80,134 84,993
Total Pfizer Inc. shareholders’ equity 87,813 90,014 57,556 65,010 71,358
Earnings per common share—basic:
Income from continuing operations attributable to Pfizer Inc. common
shareholders $ 1.03 $ 1.23 $ 1.19 $ 1.19 $ 1.52
Discontinued operations—net of tax —— 0.01 (0.01) 1.15
Net income attributable to Pfizer Inc. common shareholders $ 1.03 $ 1.23 $ 1.20 $ 1.18 $ 2.67
Earnings per common share—diluted:
Income from continuing operations attributable to Pfizer Inc. common
shareholders $ 1.02 $ 1.23 $ 1.19 $ 1.18 $ 1.52
Discontinued operations—net of tax —— 0.01 (0.01) 1.14
Net income attributable to Pfizer Inc. common shareholders $ 1.02 $ 1.23 $ 1.20 $ 1.17 $ 2.66
Market value per share (December 31) $ 17.51 $ 18.19 $ 17.71 $ 22.73 $ 25.90
Return on Pfizer Inc. shareholders’ equity 10.39% 13.42% 13.22% 11.94% 28.20%
Cash dividends paid per common share $ 0.72 $ 0.80 $ 1.28 $ 1.16 $ 0.96
Shareholders’ equity per common share(g) $ 10.96 $ 11.19 $ 8.56 $ 9.65 $ 10.05
Current ratio 2.11:1 1.66:1 1.59:1 2.15:1 2.16:1
Weighted-average shares used to calculate:
Basic earnings per common share amounts 8,036 7,007 6,727 6,917 7,242
Diluted earnings per common share amounts 8,074 7,045 6,750 6,939 7,274
(a)
Legacy Wyeth operations are included for a full year in 2010. In accordance with Pfizer’s domestic and international year-ends, includes approximately
two-and-a-half months of Wyeth’s U.S. operations and approximately one-and-a-half months of Wyeth’s international operations in 2009.
(b) Research and development expenses includes co-promotion charges, upfront and milestone payments for intellectual property rights of $393 million
in 2010, $489 million in 2009; $377 million in 2008; $603 million in 2007; and $292 million in 2006.
(c) 2010 and 2009 amounts relate to the resolution of a contingency related to our 2008 acquisition of CovX. In 2008, 2007 and 2006, we recorded
charges for the estimated portion of the purchase price of acquisitions allocated to in-process research and development.
(d) Restructuring charges and certain acquisition-related costs primarily includes the following:
2010—Restructuring charges of $2.2 billion related to our acquisition of Wyeth and other cost-reduction initiatives.
2009—Restructuring charges of $3.0 billion related to our acquisition of Wyeth and other cost-reduction initiatives.
2008—Restructuring charges of $2.6 billion related to our cost-reduction initiatives.
2007—Restructuring charges of $2.5 billion related to our cost-reduction initiatives.
2006—Restructuring charges of $1.3 billion related to our cost-reduction initiatives.
(e) Includes discontinued operations.
(f) Defined as long-term debt, deferred taxes and total shareholders’ equity. In 2009, increase reflects the long-term debt and deferred tax liabilities
associated with the acquisition of Wyeth.
(g) Represents total Pfizer Inc. shareholders’ equity divided by the actual number of common shares outstanding (which excludes treasury shares and
those held by our employee benefit trusts). The increase in 2009 was due to the issuance of equity to partially finance the Wyeth acquisition.
2010 Financial Report 117