Pfizer 2011 Annual Report Download - page 42

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Financial Review
Pfizer Inc. and Subsidiary Companies
ANALYSIS OF THE CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, % INCR./(DECR.)
(MILLIONS OF DOLLARS) 2011 2010 2009 11/10 10/09
Cash provided by/(used in):
Operating activities $ 20,240 $ 11,454 $ 16,587 77 (31)
Investing activities 2,200 (492) (31,272) *(98)
Financing activities (20,607) (11,174) 14,481 (84) *
Effect of exchange-rate changes on cash and cash
equivalents (29) (31) 60 6*
Net increase/decrease in cash and cash equivalents $ 1,804 $ (243) $ (144) *(69)
* Calculation not meaningful
Operating Activities
2011 vs. 2010
Our net cash provided by operating activities was $20.2 billion in 2011, compared to $11.5 billion in 2010. The increase in operating
cash flows was primarily attributable to:
•income tax payments made in 2010 of approximately $11.8 billion, primarily associated with certain business decisions executed to
finance the Wyeth acquisition, including the decision to repatriate certain funds earned outside the U.S., compared with $2.9 billion in
2011; and
•the timing of receipts and payments in the ordinary course of business.
In 2010, the cash flow line item called Other tax accounts, net, reflects the $11.8 billion tax payment described above.
2010 vs. 2009
Our net cash provided by continuing operating activities was $11.5 billion in 2010, compared to $16.6 billion in 2009. The decrease
in net cash provided by operating activities was primarily attributable to:
•income tax payments in 2010 of approximately $11.8 billion, primarily associated with certain business decisions executed to finance
the Wyeth acquisition, including the decision to repatriate certain funds earned outside the U.S., compared with $2.3 billion in 2009;
partially offset by:
•the inclusion of operating cash flows from legacy Wyeth operations for a full year in 2010;
•the non-recurrence of payments in 2009 in connection with the resolution of certain legal matters related to Bextra and certain other
products and our NSAID pain medicines of approximately $3.2 billion; and
•the timing of receipts and payments in the ordinary course of business.
Investing Activities
2011 vs. 2010
Our net cash provided by investing activities was $2.2 billion in 2011, compared to $492 million net cash used in 2010. The increase
in cash provided by investing activities was primarily attributable to:
•net proceeds from redemptions, purchases and sales of investments of $4.1 billion in 2011, which were primarily used to finance our
acquisitions, compared to net proceeds from redemptions, purchases and sales of investments of $23 million in 2010; and
•net proceeds of $2.4 billion received from the sale of Capsugel in 2011 (see Notes to Consolidated Financial Statements—Note 2D.
Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Divestitures);
partially offset by:
•net cash of $3.3 billion paid for the acquisitions of King, Excaliard and Icagen in 2011, compared to $273 million paid for the
acquisitions of FoldRx, Vetnex and Synbiotics in 2010.
2010 vs. 2009
Our net cash used in investing activities was $492 million in 2010, compared to $31.3 billion in 2009. The decrease in net cash used
in investing activities was primarily attributable to:
•net cash paid for acquisitions of $273 million in 2010 compared to $43.1 billion in 2009 for the acquisition of Wyeth;
partially offset by:
•net proceeds from redemptions and sales of investments of $23 million in 2010, compared to net proceeds from redemptions and sales
of investments of $12.4 billion in 2009.
2011 Financial Report 41