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50 2006 Financial Report
Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
Income taxes are not provided for foreign currency translation
relating to permanent investments in international subsidiaries.
As of December 31, 2006, we estimate that we will reclassify into
2007 income the following pre-tax amounts currently held in
Accumulated other comprehensive income/(expense): mostly all
of the unrealized holding losses on derivative financial
instruments; $266 million of Actuarial losses related to benefit plan
obligations and plan assets; and $7 million of Prior service costs
and other related primarily to benefit plan amendments.
8.
Other Comprehensive Income/(Expense)
Changes, net of tax, in accumulated other comprehensive income/(expense) follow:
NET UNREALIZED GAINS/(LOSSES) BENEFIT PLANS
___________________________________________ _______________________________________________________________
ACCUMULATED
CURRENCY PRIOR OTHER
TRANSLATION DERIVATIVE AVAILABLE- SERVICE MINIMUM COMPREHENSIVE
ADJUSTMENT FINANCIAL FOR-SALE ACTUARIAL COSTS AND PENSION INCOME/
(MILLIONS OF DOLLARS) AND OTHER INSTRUMENTS SECURITIES LOSSES OTHER LIABILITY (EXPENSE)
Balance, January 1, 2004 $ 580 $ 52 $ 138 $ — $ — $ (575) $ 195
Foreign currency translation adjustments 2,013—————2,013
Unrealized holding gains/(losses) — (60) 168———108
Reclassification adjustments to income — — (24) — — — (24)
Minimum pension liability adjustment —————(19) (19)
Other 1 ————— 1
Income taxes — 7 (16) — — 13 4
Other comprehensive income 2,014 (53) 128 — — (6) 2,083
Balance, December 31, 2004 2,594 (1) 266 — — (581) 2,278
Foreign currency translation adjustments (1,476) —————(1,476)
Unrealized holding losses — (148) (68) — — — (216)
Reclassification adjustments to income — (11) (157) — — — (168)
Minimum pension liability adjustment —————(33) (33)
Other (5) ————— (5)
Income taxes — 53 42 — — 4 99
Other comprehensive expense (1,481) (106) (183) — — (29) (1,799)
Balance, December 31, 2005 1,113 (107) 83 — — (610) 479
Foreign currency translation adjustments 1,157—————1,157
Unrealized holding gains — 126 63 — — — 189
Reclassification adjustments to income
(a)
(40) 5 (64) — — — (99)
Minimum pension liability adjustment —————(16) (16)
Other (3) ————— (3)
Income taxes — (50) 14——— (36)
Other comprehensive income 1,114 81 13 — — (16) 1,192
Adoption of new accounting standard,
net of tax
(b)
— — — (2,739) (27) 626 (2,140)
Balance, December 31, 2006 $ 2,227 $ (26) $ 96 $ (2,739) $ (27) $ — $ (469)
(a)
In 2006, the currency translation adjustments reclassified to income resulted from the sale of our Consumer Healthcare business. See also
Note 3. Discontinued Operations.
(b)
Includes pre-tax amounts for Actuarial losses of $4.3 billion and Prior service costs and other of $27 million. See also Note 13. Pension and
Postretirement Benefit Plans and Defined Contribution Plans.