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54 2005 Financial Report
Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
11. Property, Plant and Equipment
The major categories of property, plant and equipment as of
December 31 follow:
USEFUL
LIVES
(MILLIONS OF DOLLARS) (YEARS) 2005 2004
Land — $645 $688
Buildings 331⁄3-50 9,735 9,771
Machinery and equipment 8-20 9,453 9,395
Furniture, fixtures and
other 3-121⁄24,540 4,670
Construction in progress — 2,244 2,395
26,617 26,919
Less: accumulated depreciation 9,527 8,534
Total property, plant and equipment $17,090 $18,385
12. Goodwill and Other Intangible Assets
A. Goodwill
The changes in the carrying amount of goodwill by segment for
the years ended December 31, 2005 and 2004 follow:
HUMAN CONSUMER ANIMAL
(MILLIONS OF DOLLARS) HEALTH HEALTHCARE HEALTH OTHER TOTAL
Balance,
January 1, 2004 $19,487 $2,615 $ 78 $ 85 $22,265
Pharmacia goodwill
adjustments(a) 816 155 (14) (1) 956
Other(b) 663 (69) 15 (74) 535
Balance,
December 31, 2004 20,966 2,701 79 10 23,756
Other(b) (47) 88 (23) — 18
Balance,
December 31, 2005 $20,919 $2,789 $ 56 $ 10 $23,774
(a) Refer to Note 2A, Acquisitions: Pharmacia Corporation for the
primary factors impacting the Pharmacia goodwill adjustments.
None of the Pharmacia goodwill was deductible for tax purposes.
(b) Includes additions from acquisitions (primarily Vicuron in 2005
and Esperion in 2004), reductions to goodwill as a result of
adjusting certain purchase accounting liabilities in 2005,
reclassifications to Assets held for sale (including those
subsequently sold) in 2004 and the impact of foreign exchange.
B. Other Intangible Assets
The components of identifiable intangible assets as of
December 31 follow:
2005 2004
GROSS GROSS
CARRYING ACCUMULATED CARRYING ACCUMULATED
(MILLIONS OF DOLLARS) AMOUNT AMORTIZATION AMOUNT AMORTIZATION
Finite-lived
intangible assets:
Developed
technology rights $30,781 $(8,819) $33,137 $(5,967)
Brands 1,022 (60) 1,037 (14)
License agreements 160 (30) 158 (17)
Trademarks 152 (91) 134 (90)
Other(a) 452 (207) 390 (186)
Total amortized
finite-lived intangible
assets 32,567 (9,207) 34,856 (6,274)
Indefinite-lived
intangible assets:
Brands 3,864 — 4,012 —
License agreements 296 — 356 —
Trademarks 227 — 235 —
Other(b) 39 — 66 —
Total indefinite-lived
intangible assets 4,426 — 4,669 —
Total identifiable
intangible assets $36,993 $(9,207) $39,525 $(6,274)
Total identifiable
intangible assets,
less accumulated
amortization $27,786 $33,251
(a) Includes patents, non-compete agreements, customer contracts
and other intangible assets.
(b) Includes pension-related intangible assets.
Developed technology rights represent the amortized value
associated with developed technology, which has been acquired
from third parties and which can include the right to develop, use,
market, sell and/or offer for sale the product, compounds and
intellectual property that we have acquired with respect to
products, compounds and/or processes that have been completed.
We possess a well-diversified portfolio of hundreds of developed
technology rights across therapeutic categories primarily
representing the amortized value of the commercialized products
included in our Human Health segment that we acquired in
connection with our Pharmacia acquisition. While the Arthritis and
Pain therapeutic category represents about 28% of the total
amortized value of developed technology rights at December 31,
2005, the balance of the amortized value is evenly distributed
across the following Human Health therapeutic product
categories: Ophthalmology; Oncology; Urology; Infectious and
Respiratory Diseases; Endocrine Disorders categories; and, as a
group, the Cardiovascular and Metabolic Diseases; Central Nervous
System Disorders and All Other categories. The significant
components include values determined for Celebrex, Detrol,
Xalatan, Genotropin, Zyvox, and Campto/Camptosar. Also included
in this category are the post-approval milestone payments made
under our alliance agreements for certain Human Health products,
such as Rebif, Spiriva, Celebrex (prior to our acquisition of