Pfizer 2010 Annual Report Download - page 76

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
Any settlements or statute of limitations expirations would likely result in a significant decrease in our uncertain tax positions. We
estimate that within the next 12 months, our gross unrecognized tax benefits, exclusive of interest, could decrease by as much as $750
million, as a result of settlements with taxing authorities or the expiration of the statute of limitations. Our estimates of unrecognized tax
benefits and potential tax benefits may not be representative of actual outcomes, and variation from such estimates could materially
affect our financial statements in the period of settlement or when the statutes of limitations expire, as we treat these events as discrete
items in the period of resolution. Finalizing audits with the relevant taxing authorities can include formal administrative and legal
proceedings, and, as a result, it is difficult to estimate the timing and range of possible change related to our uncertain tax positions,
and such changes could be significant.
8. Other Comprehensive Income/(Loss)
Changes, net of tax, in Accumulated other comprehensive (loss)/income and the components of comprehensive income follow:
NET UNREALIZED
GAINS/(LOSSES) BENEFIT PLANS
ACCUMULATED
OTHER
COMPREHENSIVE
(LOSS)/INCOME(MILLIONS OF DOLLARS)
CURRENCY
TRANSLATION
ADJUSTMENT
AND OTHER
DERIVATIVE
FINANCIAL
INSTRUMENTS
AVAILABLE
FOR-SALE
SECURITIES
ACTUARIAL
GAINS/
(LOSSES)
PRIOR
SERVICE
(COSTS)/
CREDITS
AND
OTHER
Balance, January 1, 2008 $ 3,872 $ (32) $ 54 $(1,567) $ (28) $ 2,299
Other comprehensive income/(loss)—Pfizer
Inc(a):
Foreign currency translation adjustments (5,898) — — — — (5,898)
Unrealized holding gains/(losses) — 69 (193) — — (124)
Reclassification adjustments to income(b) (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)
Other comprehensive income/(loss)—Pfizer
Inc.(a):
Foreign currency translation adjustments 4,978 — — — — 4,978
Unrealized holding gains — 291 576 — — 867
Reclassification adjustments to income(b) 5 (299) (143) — — (437)
Actuarial gains/(losses) and other benefit
plan items — — — (701) 154 (547)
Amortization of actuarial losses and other
benefit plan items — — — 291 (6) 285
Curtailments and settlements—net — — — 390 (5) 385
Other 2 — — (192) (3) (193)
Income taxes (46) (14) (78) (23) (56) (217)
5,121
Balance, December 31, 2009 3,550 6 269 (3,367) 94 552
Other comprehensive income/(loss)—Pfizer
Inc.(a):
Foreign currency translation adjustments (3,544) — — — — (3,544)
Unrealized holding gains/(losses) — (1,043) 7 — — (1,036)
Reclassification adjustments to income(b) (7) 702 (141) — — 554
Actuarial gains/(losses) and other benefit
plan items — — — (1,428) 550 (878)
Amortization of actuarial losses and other
benefit plan items — — — 262 (43) 219
Curtailments and settlements—net — — — 266 (49) 217
Other 5 — — 90 6 101
Income taxes 165 127 22 230 (169) 375
(3,992)
Balance, December 31, 2010 $ 169 $ (208) $ 157 $(3,947) $ 389 $(3,440)
(a) Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests of $4 million in 2010, $5 million in 2009 and $35
million in 2008.
(b) The currency translation adjustments reclassified to income resulted from the sale of businesses.
Income taxes are not provided for foreign currency translation relating to permanent investments in international subsidiaries.
As of December 31, 2010, we estimate that we will reclassify into 2011 income the following pre-tax amounts currently held in
Accumulated other comprehensive (loss)/income: $7 million of the unrealized holding gains on derivative financial instruments; $280
million of actuarial losses related to benefit plan obligations and plan assets and other benefit plan items; and $72 million of prior
service credits related primarily to benefit plan amendments.
74 2010 Financial Report