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1.0.0.3 false Acquisition of Wyeth 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 Acquisition of Wyeth [Abstract] 0 pfe_AcquisitionOfWyethAbstract 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 Acquisition of Wyeth [Text Block] 1 us-gaap_BusinessCombinationDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 2. Acquisition of Wyeth A. Description of the Transaction On October 15, 2009 (the acquisition date), we acquired all of the outstanding equity of Wyeth in a cash-and-stock transaction, valued at approximately $68 billion, in which each share of Wyeth common stock outstanding, with certain limited exceptions, was canceled and converted into the right to receive $33.00 in cash without interest and 0.985 of a share of Pfizer common stock. The stock component was valued at $17.40 per share of Wyeth common stock based on the closing market price of Pfizer’s common stock on the acquisition date, resulting in a total merger consideration value of $50.40 per share of Wyeth common stock. While Wyeth now is a wholly owned subsidiary of Pfizer, the merger of local Pfizer and Wyeth entities may be pending or delayed in various jurisdictions and integration in these jurisdictions is subject to completion of various local legal and regulatory obligations. Wyeth’s core business was the discovery, development, manufacture and sale of prescription pharmaceutical products, including vaccines, for humans. Other operations of Wyeth included the discovery, development, manufacture and sale of consumer healthcare products (over-the-counter products), nutritionals and animal health products. Our acquisition of Wyeth has made us a more diversified health care company, with product offerings in human, animal, and consumer health, including vaccines, biologics, small molecules and nutrition, across developed and emerging markets. The acquisition of Wyeth also added to our pipeline of biopharmaceutical development projects endeavoring to develop medicines to help patients in critical areas, including oncology, pain, inflammation, Alzheimer’s disease, psychoses and diabetes. In connection with the regulatory approval process, we are required to divest certain animal health assets. Certain of these assets were sold in 2009, while others, classified as Assets held for sale, are pending disposition. B. Fair Value of Consideration Transferred The table below details the consideration transferred to acquire Wyeth:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="69%"/> <td valign="bottom" width="7%"/> <td/> <td/> <td valign="bottom" width="7%"/> <td/> <td/> <td valign="bottom" width="7%"/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom">(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)</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">CONVERSION CALCULATION</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">FAIR VALUE</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">FORM OF CONSIDERATION</td></tr> <tr> <td valign="top"> Wyeth common stock outstanding as of the acquisition date</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,339.6</td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Multiplied by Pfizer’s stock price as of the acquisition date multiplied by the exchange ratio of 0.985 ($17.66(a) x 0.985)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">17.40</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">23,303</td> <td valign="bottom">  </td> <td valign="bottom" align="center">Pfizer common stock(a),(b)</td></tr> <tr> <td valign="top"> Wyeth common stock outstanding as of the acquisition date</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,339.6</td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"/></tr> <tr> <td valign="top"> Multiplied by cash consideration per common share outstanding</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">$</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">33.00</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">44,208</td> <td valign="bottom">  </td> <td valign="bottom" align="right">Cash</td></tr> <tr> <td valign="top"> Wyeth stock options canceled for a cash payment(c)</td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">405</td> <td valign="bottom">  </td> <td valign="bottom" align="right">Cash</td></tr> <tr> <td valign="top"> Wyeth restricted stock/restricted stock units and other equity-based awards canceled for a cash payment</td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <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">320</td> <td valign="bottom">  </td> <td valign="bottom" align="right">Cash</td></tr> <tr> <td valign="top"> Total fair value of consideration transferred</td> <td valign="bottom">  </td> <td valign="bottom"/> <td valign="bottom"/> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">68,236</td> <td valign="bottom">  </td> <td valign="bottom"/></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="9"> </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 fair value of Pfizer’s common stock used in the conversion calculation represents the closing market price of Pfizer’s common stock on the acquisition date. </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"> Approximately 1.3 billion shares of Pfizer common stock, previously held as Pfizer treasury stock, were issued to former Wyeth shareholders. The excess of the average cost of Pfizer treasury stock issued over the fair value of the stock portion of the consideration transferred to acquire Wyeth was recorded as a reduction to Retained earnings. </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"> Each Wyeth stock option, whether or not vested and exercisable on the acquisition date, was canceled for a cash payment equal to the excess of the per share value of the merger consideration (calculated on the basis of the volume-weighted average of the per share price of Pfizer common stock on the New York Stock Exchange Transaction Reporting System for the five consecutive trading days ending two days prior to the acquisition date) over the per share exercise price of the Wyeth stock option. </td></tr></table> Certain amounts may reflect rounding adjustments. C. Recording of Assets Acquired and Liabilities Assumed The transaction has been accounted for using the acquisition method of accounting which requires, among other things, that most assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the fair value of acquired IPR&D be recorded on the balance sheet. The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date. Certain estimated values are not yet finalized (see below) and are subject to change, which could be significant. We will finalize the amounts recognized as we obtain the information necessary to complete the analyses. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date. The following table summarizes the provisional recording of assets acquired and liabilities assumed as of the acquisition date:   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="83%"/> <td valign="bottom" width="12%"/> <td/> <td/> <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">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2"> AMOUNTS RECOGNIZED AS OF ACQUISITION DATE</td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Working capital, excluding inventories(a)</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">16,342</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Inventories</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">8,388</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Property, plant and equipment</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">10,054</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Identifiable intangible assets, excluding in-process research and development</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">37,595</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> In-process research and development</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">14,918</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Other noncurrent assets</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,394</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Long-term debt</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(11,187</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Benefit obligations</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,211</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Net tax accounts(b)</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(24,773</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Other noncurrent 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" align="right">(1,908</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td valign="top"> Total identifiable net assets</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">48,612</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Goodwill</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">19,954</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Net assets acquired</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">68,566</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr> <td valign="top"> Less: Amounts attributable to noncontrolling interests</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(330</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="top"> Total consideration transferred</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" align="right">68,236</td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="4"> </td> <td> </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"> Includes cash and cash equivalents, short-term investments, accounts receivable, other current assets, assets held for sale, accounts payable and other current liabilities. </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"> As of the acquisition date, included in Current deferred tax assets and other current assets ($1.2 billion), Noncurrent deferred tax assets and other noncurrent assets ($2.7 billion), Income taxes payable ($0.6 billion), Current deferred tax liabilities and other current liabilities ($11.1 billion), Noncurrent deferred tax liabilities ($14.9 billion) and Other taxes payable ($2.1 billion, including accrued interest of $300 million). </td></tr></table> As of the acquisition date, the fair value of accounts receivable approximated book value acquired. The gross contractual amount receivable was $4.2 billion, of which $140 million was not expected to be collected. In the ordinary course of business, Wyeth incurs liabilities for environmental, legal and tax matters, as well as guarantees and indemnifications. These matters can include contingencies. Except as specifically excluded by the relevant accounting standard, contingencies are required to be measured at fair value as of the acquisition date, if the acquisition-date fair value of the asset or liability arising from a contingency can be determined. If the acquisition-date fair value of the asset or liability cannot be determined, the asset or liability would be recognized at the acquisition date if both of the following criteria were met: (i) it is probable that an asset existed or that a liability had been incurred at the acquisition date, and (ii) the amount of the asset or liability can be reasonably estimated.   <table cellpadding="0" style="BORDER-COLLAPSE: collapse" cellspacing="0" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Environmental Matters—In the ordinary course of business, Wyeth incurs liabilities for environmental matters such as remediation work, asset retirement obligations and environmental guarantees and indemnifications. Virtually all liabilities for environmental matters, including contingencies, have been measured at fair value and approximate $550 million as of the acquisition date. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Legal Matters—Wyeth is involved in various legal proceedings, including product liability, patent, commercial, environmental, antitrust matters and government investigations, of a nature considered normal to its business (see Note 19. Legal Proceedings and Contingencies). Due to the uncertainty of the variables and assumptions involved in assessing the possible outcomes of events related to these items, an estimate of fair value is not determinable. As such, these contingencies have been measured under the same “probable and estimable” standard previously used by Wyeth. Liabilities for legal contingencies approximate $650 million as of the acquisition date, which includes the recording of additional adjustments of approximately $150 million for legal matters that we intend to resolve in a manner different from what Wyeth had planned or intended. See below for items pending finalization. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Tax Matters—In the ordinary course of business, Wyeth incurs liabilities for income taxes. Income taxes are exceptions to both the recognition and fair value measurement principles associated with the accounting for business combinations. Reserves for income tax contingencies continue to be measured under the benefit recognition model as previously used by Wyeth (see Note 1P. Significant Accounting Policies: Income Tax Contingencies). Net liabilities for income taxes approximate $24.8 billion as of the acquisition date, which includes $1.8 billion for uncertain tax positions. The net tax liability includes the recording of additional adjustments of approximately $15.0 billion for the tax impact of fair value adjustments and $10.6 billion for income tax matters that we intend to resolve in a manner different from what Wyeth had planned or intended. For example, because we plan to repa triate certain overseas funds, we provided deferred taxes on Wyeth’s unremitted earnings, as well as on certain book/tax basis differentials related to investments in certain foreign subsidiaries for which no taxes have been previously provided by Wyeth as it was Wyeth’s intention to permanently reinvest those earnings and investments. See below for items pending finalization. </td></tr></table> Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the acquisition of Wyeth includes the following:   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> the expected synergies and other benefits that we believe will result from combining the operations of Wyeth with the operations of Pfizer, </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> any intangible assets that do not qualify for separate recognition, as well as future, as yet unidentified projects and products, and </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> the value of the going-concern element of Wyeth’s existing businesses (the higher rate of return on the assembled collection of net assets versus if Pfizer had acquired all of the net assets separately). </td></tr></table> Goodwill is not amortized and is not deductible for tax purposes. While the allocation of goodwill among reporting units is not complete, we expect the majority of the goodwill will be related to our Biopharmaceutical segment (see Note 12. Goodwill and Other Intangible Assets for additional information). The recorded amounts are provisional and subject to change. The following items still are subject to change:   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Amounts for intangibles, inventory and PP&E, pending finalization of valuation efforts for acquired intangible assets as well as the completion of certain physical inventory counts and the confirmation of the physical existence and condition of certain property, plant and equipment assets. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Amounts for legal contingencies, pending the finalization of our examination and valuation of the portfolio of filed cases. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Amounts for income tax assets, receivables and liabilities pending the filing of Wyeth pre-acquisition tax returns and the receipt of information from taxing authorities which may change certain estimates and assumptions used. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> The allocation of goodwill among reporting units. </td></tr></table> A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. Our judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact our results of operations. D. Actual and Pro Forma Impact of Acquisition The following table presents information for Wyeth that is included in Pfizer’s consolidated statements of income from the acquisition date, October 15, 2009, through Pfizer’s domestic and international year-ends in 2009:   <table cellspacing="0" cellpadding="0" align="center" border="0" width="100%"> <tr> <td width="77%"/> <td valign="bottom" width="19%"/> <td/> <td/> <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">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">WYETH’S OPERATIONS INCLUDED IN PFIZER’S 2009 RESULTS </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td></tr> <tr> <td valign="top"> Revenues</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">3,303</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">  </td></tr> <tr> <td valign="top"> Loss from continuing operations attributable to Pfizer Inc. common shareholders(a)</td> <td valign="bottom" bgcolor="#bfbfbf">  </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">(2,191</td> <td valign="bottom" nowrap="nowrap" bgcolor="#bfbfbf">) </td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="4"> </td> <td> </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"> Includes purchase accounting charges related to the fair value adjustments for acquisition-date inventory that has been sold ($904 million pre-tax), amortization of identifiable intangible assets acquired from Wyeth ($512 million pre-tax), and restructuring charges and additional depreciation—asset restructuring ($2.1 billion pre-tax). </td></tr></table> The following table presents supplemental pro forma information as if the acquisition of Wyeth had occurred on January 1, 2009 for the year ended December 31, 2009 and January 1, 2008 for the year ended December 31, 2008:   <table cellpadding="0" cellspacing="0" align="center" border="0" width="100%"> <tr> <td width="81%"/> <td valign="bottom" width="4%"/> <td/> <td/> <td valign="bottom" width="5%"/> <td/> <td/></tr> <tr> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="5">UNAUDITED PRO FORMA CONSOLIDATED RESULTS</td></tr> <tr> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="5">YEAR ENDED DECEMBER 31,</td></tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">(MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" bgcolor="#bfbfbf"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2" bgcolor="#bfbfbf">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right" colspan="2">2008</td></tr> <tr> <td valign="top"> Revenues</td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" bgcolor="#bfbfbf">$</td> <td valign="bottom" align="right" bgcolor="#bfbfbf">68,599</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">71,130</td></tr> <tr> <td valign="top"> Income from continuing operations attributable to Pfizer Inc. common shareholders</td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">11,537</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">8,917</td></tr> <tr> <td valign="top"> Diluted earnings per common share attributable to Pfizer Inc. common shareholders</td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" bgcolor="#bfbfbf"> </td> <td valign="bottom" align="right" bgcolor="#bfbfbf">1.43</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1.11</td></tr> <tr style="FONT-SIZE: 1px"> <td style="BORDER-TOP: #000000 3px double" valign="bottom" colspan="7"> </td></tr></table> The unaudited pro forma consolidated results were prepared using the acquisition method of accounting and are based on the historical financial information of Pfizer and Wyeth, reflecting both in 2009 and 2008 Pfizer and Wyeth results of operations for a 12-month period. The historical financial information has been adjusted to give effect to the pro forma events that are: (i) directly attributable to the acquisition, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition on January 1, 2009 and on January 1, 2008. In addition, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company nor do they reflect the expected realization of any cost savings associated with the acquisition. The unaudited pro forma consolidated results reflect primarily the following pro forma pre-tax adjustments:   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Elimination of Wyeth’s historical intangible asset amortization expense (approximately $88 million in the pre-acquisition period in 2009 and $79 million in 2008). </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Additional amortization expense (approximately $2.4 billion in 2009 and $2.9 billion in 2008) related to the fair value of identifiable intangible assets acquired. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Additional depreciation expense (approximately $200 million in 2009 and $266 million in 2008) related to the fair value adjustment to property, plant and equipment acquired. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Additional interest expense (approximately $316 million in 2009 and $1.2 billion in 2008) associated with the incremental debt we issued in 2009 to partially finance the acquisition and a reduction of interest income (approximately $320 million in 2009 and $857 million in 2008) associated with short-term investments under the assumption that a portion of these investments would have been used to partially fund the acquisition. In addition, a reduction in interest expense (approximately $129 million in 2009 and $163 million in 2008) related to the fair value adjustment of Wyeth 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%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Elimination of $904 million incurred in 2009 related to the fair value adjustments to acquisition-date inventory that has been sold, which is considered non-recurring. There is no long-term continuing impact of the fair value adjustments to acquisition-date inventory, and, as such, the impact of those adjustments is not reflected in the unaudited pro forma operating results for 2009 and 2008. </td></tr></table>   <table cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse" border="0" width="100%"> <tr> <td valign="top" align="left" width="1%">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> Elimination of $834 million of costs incurred in 2009, which are directly attributable to the acquisition, and which do not have a continuing impact on the combined company’s operating results. Included in these costs are advisory, legal and regulatory costs incurred by both legacy Pfizer and legacy Wyeth and costs related to a bridge term loan credit agreement with certain financial institutions that has been terminated. </td></tr></table> In addition, all of the above adjustments were adjusted for the applicable tax impact. The taxes associated with the fair value adjustments for acquired intangible assets, property, plant and equipment and legacy Wyeth debt, as well as the elimination of the impact of the fair value step-up of acquired inventory reflect the statutory tax rates in the various jurisdictions where the fair value adjustments occurred. The taxes associated with incremental debt to partially finance the acquisition reflect a 38.3% tax rate since the debt is an obligation of a U.S. entity and is taxed at the combined effective U.S. federal statutory and state rate. The taxes associated with the elimination of the costs directly attributable to the acquisition reflect a 28.4% effective tax rate since the costs were incurred in the U.S. and were either taxed at the combined effective U.S. federal statutory and state rate or n ot deductible for tax purposes depending on the type of expenditure. 2. Acquisition of Wyeth A. Description of the Transaction On October 15, 2009 (the acquisition date), we acquired all of the outstanding equity of Wyeth false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true