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1.0.0.3 false Cost-Reduction Initiatives and Acquisition-Related Costs false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDperShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Cost - Reduction Initiatives and Acquisition - Related Costs [Abstract] 0 pfe_CostReductionInitiativesAndAcquisitionRelatedCostsAbstract pfe false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false No definition available. false 3 Cost-Reduction Initiatives and Acquisition-Related Costs [Text Block] 1 pfe_CostReductionInitiativesDisclosureTextBlock pfe false na duration string Description of cost-reduction initiatives associated with a comprehensive plan to integrate acquired operations, generate... false false false false false false false false false 1 false false 0 0 4. Cost-Reduction Initiatives and Acquisition-Related Costs We have incurred significant costs in connection with our cost-reduction initiatives (several programs initiated since 2005) and our acquisition of Wyeth on October 15, 2009. Since the acquisition of Wyeth, our cost-reduction initiatives that were announced on January 26, 2009 have been incorporated into a comprehensive plan to integrate Wyeth’s operations, generate cost savings and capture synergies across the combined company. We are focusing our efforts on achieving an appropriate cost structure for the combined company. We incurred the following costs in connection with our cost-reduction initiatives and the Wyeth acquisition:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="73%"/> <td valign="bottom" width="4%"/> <td/> <td/> <td/> <td valign="bottom" width="3%"/> <td/> <td valign="bottom" width="4%"/> <td/> <td/> <td valign="bottom" width="5%"/> <td/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="11">YEAR ENDED DECEMBER 31,</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">2008</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">2007</td></tr> <tr> <td valign="top"> Transaction costs(a)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">768</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">   </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—</td></tr> <tr> <td valign="top"> Integration costs and other(b)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">569</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">49</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Restructuring charges(c) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">3,000</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2,626</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2,523</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Restructuring charges and certain acquisition-related costs</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">4,337</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2,675</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2,534</td></tr> <tr> <td valign="top"> Additional depreciation—asset restructuring(d)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">241</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">786</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">788</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Implementation costs(e) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">250</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">819</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">601</td></tr> <tr> <td valign="top"> Total</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">4,828</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,280</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,923</td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="13"> </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(a)</td> <td valign="top" align="left"> Transaction costs represent external costs directly related to effecting the acquisition of Wyeth and primarily include expenditures for banking, legal, accounting and other similar services. Substantially all of the costs incurred are fees related to a $22.5 billion bridge term loan credit agreement entered into with certain financial institutions on March 12, 2009 to partially fund our acquisition of Wyeth. The bridge term loan credit agreement was terminated in June 2009 as a result of our issuance of approximately $24.0 billion of senior unsecured notes in the first half of 2009. All bridge term loan commitment fees have been expensed, and we no longer are subject to the covenants under that agreement (see Note 9D: Financial Instruments: Long-Term Debt). </td></tr></table> <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(b)</td> <td valign="top" align="left"> Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and systems integration. </td></tr></table> <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(c)</td> <td valign="top" align="left"> Restructuring charges include the following: </td></tr></table>   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="44%"/> <td valign="bottom" width="3%"/> <td/> <td/> <td/> <td valign="bottom" width="2%"/> <td/> <td valign="bottom" width="3%"/> <td/> <td/> <td valign="bottom" width="4%"/> <td/> <td/> <td valign="bottom" width="4%"/> <td/> <td/> <td valign="bottom" width="2%"/> <td/> <td valign="bottom" width="2%"/> <td/> <td/> <td valign="bottom" width="2%"/> <td/> <td valign="bottom" width="2%"/> <td/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">ACTIVITY</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">ACCRUAL</td></tr> <tr> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="16">COSTS INCURRED</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">THROUGH DECEMBER 31,</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">AS OF DECEMBER 31,</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">2008</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">2007</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" nowrap="nowrap" colspan="2">2005-2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009(1)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009(2)</td></tr> <tr> <td valign="top"> Employee termination costs</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">2,571</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">   </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,004</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,034</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7,721</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">4,488</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">3,233</td></tr> <tr> <td valign="top"> Asset impairments</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">159</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">543</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">260</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,452</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1,452</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Other</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">270</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">79</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">229</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">710</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">577</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">133</td></tr> <tr> <td valign="top"> Total</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">3,000</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,626</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,523</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">9,883</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">6,517</td> <td valign="bottom"> </td> <td valign="bottom"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">3,366</td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="26"> </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(1)</td> <td valign="top" align="left"> Includes adjustments for foreign currency translation. </td></tr></table> <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(2)</td> <td valign="top" align="left"> Included in Current deferred tax liabilities and other current liabilities ($2.5 billion) and Other noncurrent liabilities ($846 million). </td></tr></table> From the beginning of our cost-reduction and transformation initiatives in 2005 through December 31, 2009, Employee termination costs represent the expected reduction of the workforce by approximately 40,000 employees, mainly in manufacturing, sales and research of which approximately 25,700 employees have been terminated as of December 31, 2009. Employee termination costs are generally recorded when the actions are probable and estimable and include accrued severance benefits, pension and postretirement benefits, many of which may be paid out during periods after termination. Asset impairments primarily include charges to write down property, plant and equipment to fair value. Other primarily includes costs to exit certain assets and activities.   <table cellpadding="0" style="BORDER-COLLAPSE: collapse" cellspacing="0" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(d)</td> <td valign="top" align="left"> Additional depreciation—asset restructuring represents the impact of changes in the estimated useful lives of assets involved in restructuring actions and are included in our consolidated statements of income as follows: </td></tr></table>   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="82%"/> <td valign="bottom" width="2%"/> <td/> <td/> <td/> <td valign="bottom" width="2%"/> <td/> <td/> <td valign="bottom" width="2%"/> <td/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="9">YEAR ENDED DECEMBER 31,</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2" bgcolor="#cccccc">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">2008</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">2007</td></tr> <tr> <td valign="top"> Cost of sales</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc">$</td> <td valign="bottom" align="right" bgcolor="#cccccc">   133</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">596</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">   571</td></tr> <tr> <td valign="top"> Selling, informational and administrative expenses</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" align="right" bgcolor="#cccccc">53</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">19</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Research and development expenses</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#cccccc">55</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">171</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">216</td></tr> <tr> <td valign="top"> Total</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc">$</td> <td valign="bottom" align="right" bgcolor="#cccccc">241</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">   786</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">788</td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="11"> </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(e)</td> <td valign="top" align="left"> Implementation costs represent external, incremental costs directly related to implementing cost-reduction initiatives and primarily include expenditures related to system and process standardization and the expansion of shared services. Implementation costs relate to costs incurred for our cost-reduction initiatives prior to our acquisition of Wyeth on October 15, 2009. Costs related to our cost-reduction initiatives incurred after the Wyeth acquisition, other than additional depreciation––asset restructuring, are included in Restructuring charges and certain acquisition-related costs. Implementation costs are included in our consolidated statements of income as follows: </td></tr></table>   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="81%"/> <td valign="bottom" width="3%"/> <td/> <td/> <td/> <td valign="bottom" width="3%"/> <td/> <td/> <td valign="bottom" width="3%"/> <td/> <td/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="9">YEAR ENDED DECEMBER 31,</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2" bgcolor="#cccccc">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">2008</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">2007</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Cost of sales</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc">$</td> <td valign="bottom" align="right" bgcolor="#cccccc">42</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">   149</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">   129</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Selling, informational and administrative expenses</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" align="right" bgcolor="#cccccc">   166</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">394</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">333</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Research and development expenses</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" align="right" bgcolor="#cccccc">36</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">262</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">200</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Other (income)/deductions—net</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#cccccc"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#cccccc">6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">14</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(61</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Total</td> <td valign="bottom" bgcolor="#cccccc"> </td> <td valign="bottom" bgcolor="#cccccc">$</td> <td valign="bottom" align="right" bgcolor="#cccccc">250</td> <td valign="bottom" nowrap="nowrap" bgcolor="#cccccc">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">819</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">601</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="11"> </td></tr></table> 4. Cost-Reduction Initiatives and Acquisition-Related Costs We have incurred significant costs in connection with our cost-reduction initiatives (several false false Description of cost-reduction initiatives associated with a comprehensive plan to integrate acquired operations, generate cost savings and capture synergies across the company; as well as costs incurred in connection with the Wyeth acquisition. These costs include (i) restructuring activities, including exit and disposal activities, the major types of costs associated with the plan activities and the accrual balance at the end of the period; (ii) integration costs, which represent external, incremental costs directly related to integrating acquired businesses; (iii) implementation costs, which represent external, incremental costs directly related to implementing cost-reduction initiatives prior to the Wyeth acquisition and primarily include expenditures related to system and process standardization and the expansion of shared services. Costs related to Pfizer's cost-reduction initiatives incurred after the Wyeth acquisition, other than additional depreciation-asset restructuring, are included in Restructuring charges and certain acquisition-related costs on the income statement; (iv) additional depreciation-asset restructuring, which represents the impact of changes in the estimated useful lives of assets involved in restructuring actions; and (v) transaction costs, representing external costs directly related to effecting the acquisition of Wyeth. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true