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1.0.0.3 false Taxes on Income 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 Taxes on Income [Abstract] 0 pfe_TaxesOnIncomeAbstract 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 Taxes on Income [Text Block] 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 7. Taxes on Income A. Taxes on Income Income from continuing operations before provision for taxes on income, and income attributable to noncontrolling interests consist of the following:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="71%"/> <td valign="bottom" width="4%"/> <td/> <td/> <td/> <td valign="bottom" width="5%"/> <td/> <td/> <td/> <td valign="bottom" width="4%"/> <td/> <td/> <td valign="bottom" width="3%"/> <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="10">YEAR ENDED DECEMBER 31,</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></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" 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">  </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">  </td></tr> <tr> <td valign="top"> United States</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(3,632</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(1,760</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">242</td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> International</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">14,459</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">11,454</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">9,036</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Total income from continuing operations before provision for taxes on income</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">10,827</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">9,694</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right"> 9,278</td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="14"> </td></tr></table> The decrease in domestic income from continuing operations before taxes in 2009 compared to 2008 was due primarily to an increase in certain expenses incurred in connection with the Wyeth acquisition, which was partially offset by the non-recurrence of charges of $2.3 billion recorded in 2008 resulting from an agreement-in-principle with the DOJ to resolve the previously reported investigations regarding past off-label promotional practices concerning Bextra and certain other investigations, as well as other litigation-related charges recorded in 2008 of approximately $900 million associated with the resolution of certain litigation involving our NSAID pain medicines. The decrease in domestic income from continuing operations before taxes in 2008 compared to 2007 was due primarily to the aforementioned charges and an increase in restructuring charges in 2008 compared to 2007, partially offset by the charges a ssociated with Exubera in 2007. The increase in international income from continuing operations before taxes in 2009 compared to 2008 was due primarily to the gain in connection with the formation of ViiV, the decrease in international restructuring charges and the non-recurrence of acquired IPR&D, partially offset by an increase in amortization expenses incurred in connection with the Wyeth acquisition. The increase in international income from continuing operations before taxes in 2008 compared to 2007 was due primarily to the charges associated with Exubera in 2007. For additional information on all of these charges, see Note 3. Other Significant Transactions and Events. Provision for taxes on income consists of the following:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="69%"/> <td valign="bottom" width="6%"/> <td/> <td/> <td/> <td valign="bottom" width="5%"/> <td/> <td/> <td/> <td valign="bottom" width="5%"/> <td/> <td/> <td/> <td valign="bottom" width="4%"/> <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="10">YEAR ENDED DECEMBER 31,</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></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" 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">  </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"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td></tr> <tr> <td valign="top"> United States:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Taxes currently payable:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Federal</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">10,169</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">     </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">707</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,393</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> State and local</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">71</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">154</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">243</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Deferred income taxes:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Federal</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(10,002</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">106</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,774</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> State and local</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">(93</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" align="right">(136</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </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">(212</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total U.S. tax (benefit)/provision(a), (b)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">    </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">145</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">831</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(350</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> International:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Taxes currently payable</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1,539</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,115</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,175</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Deferred income taxes</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">513</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" align="right">(1,301</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </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">(802</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total international tax provision</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">    </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">2,052</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">814</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,373</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Total provision for taxes on income(c)</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">2,197</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,645</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,023</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="15"> </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"> The increase in Federal current tax payable in 2009 was due to increased tax costs associated with certain business decisions executed to finance the Wyeth acquisition. </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"> The decrease in Federal deferred income taxes was due to a reduction of deferred tax liabilities recorded in connection with our acquisition of Wyeth. </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"> Excludes federal, state and international net tax liabilities assumed or established on the date of the acquisition of Wyeth (see Note 2. Acquisition of Wyeth for additional details) and $4 million in 2008 and $1 million in 2007 primarily related to the resolution of certain tax positions related to Pharmacia Corporation (Pharmacia), which were debited or credited to Goodwill, as appropriate. </td></tr></table> A tax benefit of $174 million was recorded in the third quarter of 2009 related to the final resolution of an agreement-in-principle with the DOJ to settle investigations of past promotional practices concerning Bextra and certain other investigations. This resulted in the receipt of information that raised our assessment of the likelihood of prevailing on the technical merits of our tax position. In 2009 and 2008, we sold two of our biopharmaceutical companies, Vicuron Pharmaceuticals, Inc. (Vicuron) and Esperion Therapeutics, Inc. (Esperion), respectively. Both sales, for nominal consideration, resulted in a loss for tax purposes that reduced our U.S. tax expense by $556 million in 2009 and $426 million in 2008. These tax benefits are a result of the significant initial investment in these entities at the time of acquisition, primarily reported as an income statement charge for IPR&D at acquisition date. These tax benefits were offset by certain costs associated with the Wyeth acquisition that are not deductible. In 2008, we effectively settled certain issues common among multinational corporations with various foreign tax authorities primarily relating to years 2000 through 2005. As a result, in 2008 we recognized $305 million in tax benefits. 2008 also reflects the impact of the third-quarter 2008 provision for the proposed resolution of certain Bextra and Celebrex civil litigation and the impact of the fourth-quarter 2008 provision for the proposed resolution of certain investigations, which were either not deductible or deductible at lower tax rates. Amounts reflected in the preceding tables are based on the location of the taxing authorities. B. Tax Rate Reconciliation Reconciliation of the U.S. statutory income tax rate to our effective tax rate for income from continuing operations follows:   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="70%"/> <td valign="bottom" width="9%"/> <td/> <td/> <td valign="bottom" width="8%"/> <td/> <td/> <td valign="bottom" width="8%"/> <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="7">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">  </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">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" align="right">2008</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">2007</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> U.S. statutory income tax rate</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">35.0</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">% </td> <td valign="bottom">    </td> <td valign="bottom" align="right">35.0</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom">    </td> <td valign="bottom" align="right">35.0</td> <td valign="bottom" nowrap="nowrap">% </td></tr> <tr> <td valign="top"> Earnings taxed at other than U.S. statutory rate</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(9.3</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">)     </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(20.2</td> <td valign="bottom" nowrap="nowrap">)     </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(21.6</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Sales of biopharmaceutical companies</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(5.1</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(4.3</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Resolution of certain tax positions</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(3.1</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> U.S. research tax credit and manufacturing deduction</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(1.3</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(1.2</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">(1.5</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Legal settlements</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(1.6</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">    </td> <td valign="bottom" align="right">9.0</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Acquired IPR&D</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">0.2</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">2.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">1.1</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Costs associated with Wyeth acquisition</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">2.4</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> All other—net</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">—</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" align="right">(0.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(2.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Effective tax rate for income from continuing operations</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">20.3</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">% </td> <td valign="bottom">    </td> <td valign="bottom" align="right">17.0</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom">    </td> <td valign="bottom" align="right">11.0</td> <td valign="bottom" nowrap="nowrap">% </td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="9"> </td> <td> </td></tr></table> For earnings taxed at other than the U.S. statutory rate, this rate impact reflects the fact that we operate manufacturing subsidiaries in Puerto Rico, Ireland and Singapore. We benefit from Puerto Rican incentive grants that expire between 2013 and 2029. Under the grants, we are partially exempt from income, property and municipal taxes. In Ireland, we benefit from an incentive tax rate effective through 2010 on income from manufacturing operations. In Singapore, we benefit from incentive tax rates effective through 2031 on income from manufacturing operations. In 2008 and 2009, the rate impact also reflects the jurisdictional location of earnings and the costs of certain repatriation decisions. In 2008, the rate impact also reflects the realization of approximately $711 million (tax effect) in net operating losses. For a discussion about the sales of the biopharmaceutical companies, legal settlements and costs associated with the Wyeth acquisition, see the “Taxes on Income” section above. For a discussion about the resolution of certain tax positions, see the “Tax Contingencies” section below. On October 3, 2008, the Tax Extenders and Alternative Minimum Tax Relief Act (the Extenders Act) extended the R&D tax credit from January 1, 2008, through December 31, 2009. As of December 31, 2009, the credit has expired. The charges for acquired IPR&D in 2009, 2008 and 2007 are primarily not deductible. C. Deferred Taxes Deferred taxes arise as a result of basis differentials between financial statement accounting and tax amounts. The tax effect of the major items recorded as deferred tax assets and liabilities, shown before jurisdictional netting, as of December 31 is as follows:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="52%"/> <td valign="bottom" width="7%"/> <td/> <td/> <td/> <td valign="bottom" width="6%"/> <td/> <td/> <td/> <td valign="bottom" width="6%"/> <td/> <td/> <td/> <td valign="bottom" width="7%"/> <td/> <td/> <td/> <td valign="bottom" width="5%"/> <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" bgcolor="#bfbfbf">    </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="6" bgcolor="#bfbfbf">2009 DEFERRED TAX</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </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="6">2008 DEFERRED TAX</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></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">ASSETS</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" colspan="2" bgcolor="#bfbfbf">(LIABILITIES)</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" align="right" colspan="2">ASSETS</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">(LIABILITIES)</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></tr> <tr> <td valign="bottom"> Prepaid/deferred items</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1,330</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(60</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,000</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(152</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Inventories</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">437</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(859</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">102</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(43</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Intangibles</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">949</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(19,802</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">872</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(5,727</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Property, plant and equipment</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">715</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(2,014</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">205</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(996</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Employee benefits</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">4,786</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(66</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,414</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(585</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Restructurings and other charges</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">884</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(8</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">841</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(5</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Legal and product liability reserves</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1,010</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">703</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(104</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Net operating loss/credit carryforwards</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">4,658</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,065</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Unremitted earnings</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(7,057</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(4,471</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> State and local tax adjustments</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">747</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">585</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> All 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">744</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </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">(187</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" align="right">905</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </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">(389</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="bottom"> Subtotal</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">16,260</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(30,053</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">)     </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11,692</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(12,472</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Valuation allowance</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(353</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">)     </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">—</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(194</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> Total deferred taxes</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">    </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">$</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">15,907</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">$</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" bgcolor="#bfbfbf">(30,053</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">11,498</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </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">$</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(12,472</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="bottom"> Net deferred tax liability</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(14,146</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(974</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="19"> </td></tr></table> Classified in our Consolidated Balance Sheet as follows:   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="49%"/> <td valign="bottom" width="16%"/> <td/> <td/> <td/> <td valign="bottom" width="16%"/> <td/> <td/> <td/> <td valign="bottom" width="10%"/> <td/></tr> <tr> <td valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">    </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2" bgcolor="#bfbfbf"> DEFERRED TAX ASSET/ (LIABILITY)</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </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"> DEFERRED TAX ASSET/ (LIABILITY)</td> <td style="BORDER-TOP: #000000 1px solid; 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></tr> <tr> <td valign="bottom">Current:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">    </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Current deferred tax assets and other current assets</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">2,591</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,143</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Current deferred tax liabilities and other current liabilities</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(226</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(414</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom">Noncurrent:</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom" bgcolor="#bfbfbf"/> <td valign="bottom">    </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="bottom"> Noncurrent deferred tax assets and other noncurrent assets</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1,328</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,256</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> Noncurrent deferred tax liabilities</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">(17,839</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" align="right">(2,959</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="bottom">Net deferred tax liability</td> <td valign="bottom" bgcolor="#bfbfbf">    </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(14,146</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(974</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="11"> </td></tr></table> The increase in the net deferred tax liability position in 2009 compared to 2008 was primarily due to the noncurrent deferred tax liabilities related to identifiable intangible assets established in connection with our acquisition of Wyeth as well as the increase in noncurrent deferred tax liabilities on unremitted earnings, partially offset by the net deferred tax assets acquired, and net deferred tax assets established as a result of various restructuring charges incurred in connection with our acquisition of Wyeth. We have carryforwards, primarily related to foreign tax credit carryovers and net operating loss carryovers, which are available to reduce future U.S. federal and state, as well as international income taxes payable with either an indefinite life or expiring at various times between 2010 and 2028. Certain of our U.S. net operating losses are subject to limitations under Internal Revenue Code Section 382. Valuation allowances are provided when we believe that our deferred tax assets are not recoverable based on an assessment of estimated future taxable income that incorporates ongoing, prudent, feasible tax planning strategies. As of December 31, 2009, we have not made a U.S. tax provision on approximately $42.5 billion of unremitted earnings of our international subsidiaries. As of December 31, 2009, these earnings are intended to be permanently reinvested overseas; as such, it is not practical to compute the estimated deferred tax liability on these permanently reinvested earnings. D. Tax Contingencies Unrecognized tax benefits represent liabilities that we have recorded for the difference between the estimated tax benefits recognized in our financial statements and tax positions taken or expected to be taken on our tax returns. These unrecognized tax benefits are recorded due to the uncertainty of the ultimate outcome of tax positions taken on our tax returns. Because tax laws and regulations are subject to interpretation and tax litigation inherently is uncertain, these evaluations can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. Our evaluations are based on estimates and assumptions that have been deemed reasonable by management. However, if our estimates and assumptions are not representative of actual outcomes, our results could be materially impacted. For a description of our accounting policies associated with accounting for income tax c ontingencies, see Note 1P. Significant Accounting Policies: Income Tax Contingencies and Note 1C. Significant Accounting Policies: Estimates and Assumptions. Tax assets associated with uncertain tax positions represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another tax jurisdiction. These potential benefits generally result from cooperative efforts among taxing authorities, as required by tax treaties to minimize double taxation, commonly referred to as the competent authority process. The recoverability of these assets, which we believe to be more likely than not, is dependent upon the actual payment of taxes in one tax jurisdiction and, in some cases, the successful petition for recovery in another tax jurisdiction. The United States is one of our major tax jurisdictions. We currently are appealing two issues related to the Internal Revenue Service’s (IRS) audits of the Pfizer Inc. tax returns for the years 2002 through 2005. The 2006, 2007 and 2008 tax years currently are under audit. The 2009 tax year is not yet under audit. All other tax years in the U.S. for Pfizer Inc. are closed under the statute of limitations. With respect to Pharmacia, the IRS currently is conducting an audit for the year 2003 through the date of merger with Pfizer (April 16, 2003). With respect to Wyeth, the years 2002 through 2005 currently are under IRS audit, and tax years 2006 through the Wyeth acquisition date (October 15, 2009) have not been audited yet. In addition to the open audit years in the U.S., we have open audit years in other major tax jurisdictions, such as Canada (1998-2009), Japan (2006-2009), Europe (1997-2009, pri marily reflecting Ireland, the United Kingdom, France, Italy, Spain and Germany) and Puerto Rico (2003-2009). 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 change to our uncertain tax positions. If our estimates and assumptions are not representative of actual outcomes, any change could have a significant impact. In 2008, we effectively settled certain issues common among multinational corporations with various foreign tax authorities primarily relating to tax years 2000 to 2005. As a result, we recognized $305 million in tax benefits. Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in our financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. These unrecognized tax benefits relate primarily to issues common among multinational corporations. Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="84%"/> <td valign="bottom" width="3%"/> <td/> <td/> <td/> <td valign="bottom" width="3%"/> <td/> <td/> <td/> <td valign="bottom" width="3%"/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS)</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </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="right" colspan="2">2008</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></tr> <tr> <td valign="top"> Balance, January 1</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(5,372</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">)   </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(5,466</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Acquisition of Wyeth</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(1,785</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Decreases based on tax positions taken during a prior period(a) </td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">38</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">880</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Increases based on tax positions taken during the current period(b)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(941</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(990</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Decreases based on tax positions taken during the current period(c)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">712</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Impact of foreign exchange</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(284</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">211</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"/></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Other, net(d)</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">(25</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" align="right">(7</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Balance, December 31(e)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(7,657</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(5,372</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"/></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%">(a)</td> <td valign="top" align="left"> Decreases are primarily a result of effectively settling certain issues with various foreign tax authorities. </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"> Primarily included in Provision for taxes on income. </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"> Primarily included in Income taxes payable. </td></tr></table> <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">(d)</td> <td valign="top" align="left"> Includes increases based on tax positions taken during a prior period, decreases due to settlements with taxing authorities primarily resulting in cash payments and decreases as a result of a lapse of applicable statutes of limitations. </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"> In 2009, included in Income taxes payable ($144 million), Current deferred tax assets and other current assets ($78 million), Noncurrent deferred tax liabilities ($208 million) and Other taxes payable ($7.2 billion). In 2008, included in Income taxes payable ($85 million), Current deferred tax assets and other current assets ($44 million) and Other taxes payable ($5.2 billion). </td></tr></table> Interest expense related to our unrecognized tax benefits is recorded in Provision for taxes on income in our consolidated statements of income and totaled $191 million in 2009, $106 million in 2008 and $214 million in 2007. Gross accrued interest totaled $1.9 billion as of December 31, 2009 (including $300 million recorded upon the acquisition of Wyeth) and $1.3 billion as of December 31, 2008. In 2009, these amounts were included in Income taxes payable ($90 million), Current deferred tax assets and other current assets ($55 million) and Other taxes payable ($1.8 billion). In 2008, these amounts were primarily included in Other taxes payable. Accrued penalties are not significant. Any settlements or statute of limitations expirations would likely result in a significant decrease in our uncertain tax positions. We estimate that within the next 12 months, our gross uncertain tax positions, exclusive of interest could decrease by as much as $900 million, as a result of settlements with taxing authorities or the expiration of the statute of limitations. 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 ch ange related to our uncertain tax positions and such changes could be significant. 7. Taxes on Income A. Taxes on Income Income from continuing operations before provision for taxes on income, and income attributable to noncontrolling false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true