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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (16597)	4/22/2005 7:19:03 PM
From: DewDiligence_on_SI	Read Replies (2) \| Respond to of 52153

>>PFE last balance sheet shows $1.8B Cash and $18B Short Term investments. Is the $38B included in that balance sheet or off it?<< PFE had $39.7B of current assets (cash, securities, accounts receivable, inventories) at 2004 year-end By definition, current assets, if not already cash, are assets that will be converted to cash within the fiscal yr. For PFE, most of these assets resided outside the U.S. at 2004 year-end. PFE does not have any material off-balance-sheet assets, according to its 10K filing. Regards, Dew

To: Ian@SI who wrote (16597)	4/26/2005 9:59:44 AM
From: Spheres	Respond to of 52153

Ian, Great question, and although it was fun researching, I was unable to come up with a succinct answer. For the most part what the article refers to is repatriated earnings; foreign earnings untaxed by the US. In October of 2004, tax relief for foreign earnings was signed into law, and in 2005 the tax rate is 5.25% rather than the traditional 35%. It is a huge tax savings. However, as is the case with Pfizer, having not anticipated repatriating earnings, they did not carry a tax liability on the books. So, the tax, while greatly reduced, impacts earnings. Pfizer took a charge of $2.19 billion to cover the tax bill for repatriating $28.3 billion in overseas earnings later this year. Excluding that and other charges, the world's largest drug maker said it earned $4 billion, or 54 cents a share. wsj.com