Assets and Liabilities Held for Sale

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

On July 31, 2019, which fell in the third fiscal quarter of 2019, we closed the transaction in which we and GSK combined our respective consumer healthcare businesses into a new consumer healthcare joint venture that operates globally under the GSK Consumer Healthcare name. In exchange for contributing our Consumer Healthcare business, we received a 32% equity stake in the new company and GSK owns the remaining 68%. Upon the closing of the transaction, we deconsolidated our

Consumer Healthcare business and expect to recognize a gain in our fiscal third quarter of 2019 for the difference in the fair value of our 32% equity stake in the new company and the carrying value of our Consumer Healthcare business. We will account for our 32% equity stake in the new company as an equity-method investment. Assets and liabilities associated with our Consumer Healthcare business were reclassified as held for sale in the consolidated balance sheets as of June 30, 2019 and December 31, 2018. The Consumer Healthcare business assets held for sale are reported in Assets held for sale and Consumer Healthcare business liabilities held for sale are reported in Liabilities held for sale. This includes the Consumer Healthcare business tax assets and liabilities related to fully dedicated consumer healthcare subsidiaries.



The amounts associated with the Consumer Healthcare business, as well as other assets classified as held for sale consisted of the following:
(MILLIONS OF DOLLARS)	June 30, 2019		December 31, 2018
Assets Held for Sale
Cash and cash equivalents	$	53	$	32
Trade accounts receivable, less allowance for doubtful accounts	555		532
Inventories	580		538
Other current assets	56		56
PP&E	714		675
Identifiable intangible assets, less accumulated amortization	5,753		5,763
Goodwill	1,965		1,972
Noncurrent deferred tax assets and other noncurrent tax assets	55		54
Other noncurrent assets	91		57
Total Consumer Healthcare assets held for sale	9,821		9,678
Other assets held for sale^(a)	56		46
Assets held for sale	$	9,877	$	9,725

Liabilities Held for Sale

Trade accounts payable	$	348	$	406
Income taxes payable	63		39
Accrued compensation and related items	79		93
Other current liabilities	334		353
Pension benefit obligations, net	41		39
Postretirement benefit obligations, net	34		33
Noncurrent deferred tax liabilities	1,036		870
Other noncurrent liabilities	74		56
Total Consumer Healthcare liabilities held for sale	$	2,009	$	1,890


^(a)	Other assets held for sale consist of PP&E.

As a part of Pfizer, pre-tax income on a management business unit basis for the Consumer Healthcare business was $274 million for the second quarter of 2019 and $554 million for the six months ended June 30, 2019, and $249 million for the second quarter of 2018 and $514 million for the six months ended July 1, 2018.