Pfizer 2013 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2013 Pfizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 123

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123

Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2013 Financial Report
81
other current tax assets ($14 million) and Other taxes payable ($752 million). Accrued penalties are not significant. See also Note 5A. Tax
Matters: Taxes on Income from Continuing Operations.
Status of Tax Audits and Potential Impact on Accruals for Uncertain Tax Positions
The United States is one of our major tax jurisdictions, and we are regularly audited by the IRS:
• With respect to Pfizer Inc., tax years 2009-2010 are currently under audit. Tax years 2011-2013 are open, but not under audit. All other
tax years are closed.
• With respect to Wyeth, the audit for tax years 2006 through the Wyeth acquisition date (October 15, 2009) has been effectively settled in
2013. All other tax years are closed.
• With respect to King, the audit for tax years 2009 and 2010 has been effectively settled in 2013. The tax year January 1, 2011 through
the date of acquisition (January 31, 2011) is open, but not under audit. All other tax years are closed. The open tax year for King is not
material to Pfizer Inc.
In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (2001-2013), Japan
(2013), Europe (2007-2013, primarily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany), Latin America (1998-2013,
primarily reflecting Brazil and Mexico) and Puerto Rico (2008-2013).
Any settlements or statutes of limitations expirations could result in a significant decrease in our uncertain tax positions. We estimate that it is
reasonably possible that within the next twelve months, our gross unrecognized tax benefits, exclusive of interest, could decrease by as much
as $300 million, as a result of settlements with taxing authorities or the expiration of the statutes of limitations. Our assessments are based on
estimates and assumptions that have been deemed reasonable by management, but 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 changes related to our uncertain tax positions, and such changes could be significant.
E. Taxes on Items of Other Comprehensive Income/(Loss)
The following table provides the components of the tax provision/(benefit) on Other comprehensive income/(loss):
Year Ended December 31,
(MILLIONS OF DOLLARS) 2013 2012 2011
Foreign currency translation adjustments(a) $111 $110 $(61)
Unrealized holding gains/(losses) on derivative financial instruments 217 251 (220)
Reclassification adjustments for realized (gains)/losses (63)(144)135
154 107 (85)
Unrealized holding gains/(losses) on available-for-sale securities 57 15 (4)
Reclassification adjustments for realized (gains)/losses (57)47 (38)
—62 (42)
Benefit plans: actuarial gains/(losses), net 1,422 (721)(993)
Reclassification adjustments related to amortization 205 171 99
Reclassification adjustments related to settlements, net 2105 118
Foreign currency translation adjustments and other 215 29
1,631 (430)(747)
Benefit plans: prior service credits and other 56 741
Reclassification adjustments related to amortization (23)(27)(27)
Reclassification adjustments related to curtailments, net (1) (51)(35)
Other —(3) (3)
32 (74)(24)
Tax provision/(benefit) on other comprehensive income/(loss) $1,928 $(225)$ (959)
(a) Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely.