SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from. . .to. . .
Commission file number 1-3619
A. Full title of the Plan and the address of the Plan, if
different from that of the issuer named below:
PFIZER SAVINGS AND INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the Plan and
the address of its principal executive offices:
PFIZER INC.
235 EAST 42nd STREET
NEW YORK, NEW YORK 10017
PFIZER SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR PLAN BENEFITS
December 31, 1998
(thousands of dollars, except unit values)
<TABLE>
<CAPTION>
Non-
Partici-
pant
Directed Participant Directed
-------- -----------------------------------------------------------------------------------
Company
Common
Stock Loan
Total Fund* Fund A Fund B Fund C* Fund D Fund E Fund F Fund G Fund
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments,
at fair
value:
Pfizer Inc.
common
stock:
Company
Common
Stock
Fund,
17,473,855
shares, cost
$147,996;
Fund C,
18,401,562
shares, cost
$276,676 $4,484,427 $2,184,232 $ -- $ -- $2,300,195 $ -- $ -- $ -- $ -- $ --
Intermediate
Treasury Bond
Fund, The
Northern Trust
Company, cost
$193,651 199,239 -- 199,239 -- -- -- -- -- -- --
Collective
Stock Index
Fund, The
Northern Trust
Company:
Fund B, cost
$71,916; Fund G,
cost $439 230,323 -- -- 229,859 -- -- -- -- 464 --
Small Company
Index Mutual
Fund, The
Northern Trust
Company,
cost $8,370 7,393 -- -- -- -- -- 7,393 -- -- --
Collective
Value Index
Fund, The
Northern Trust
Company, cost
$7,651 8,134 -- -- -- -- -- -- 8,134 -- --
Collective Growth
Equity Index Fund,
The Northern Trust
Company, cost
$8,780 10,811 -- -- -- -- -- -- -- 10,811 --
Other investments,
at cost which
approximates fair
value:
Loans to
participants 44,941 -- -- -- -- -- -- -- -- 44,941
Cash and short-
term securities 45,554 733 196 202 127 43,408 170 52 666 --
--------------------------------------------------------------------------------------------------------
Total
investments 5,030,822 2,184,965 199,435 230,061 2,300,322 43,408 7,563 8,186 11,941 44,941
Due to (from)
other funds -- -- 6,356 (382) (13,668) 4,661 1,359 83 1,591 --
Interest
receivable 3,297 3 3,110 -- 3 179 2 -- -- --
Contributions
receivable
from (due to)
employers,
including
amounts
collected from
employees 11,726 3,578 (148) 1,050 6,891 77 80 77 121 --
Investment
management fees
payable--Note 4 (61) -- (29) (32) -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------
Net assets
available for
plan benefits--
Note 7 $5,045,784 $2,188,546 $208,724 $230,697 $2,293,548 $48,325 $9,004 $8,346 $13,653 $44,941
=========================================================================================================
Number of units
outstanding at
end of year 27,764,315 14,721,400 8,110,431 29,372,583 3,793,168 922,376 731,830 1,027,454
Unit Value--
Note 1 $77.98 $13.90 $28.32 $77.66 $12.53 $9.74 $11.30 $13.25
<FN>
<F1>* Total investments represent 5% or more of the Plan's net assets available
for plan benefits.
See Notes to Financial Statements which are an integral part of these financial statements.
</FN>
</TABLE>
PFIZER SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR PLAN BENEFITS
December 31, 1997
(thousands of dollars, except unit values)
<TABLE>
<CAPTION>
Non-
Participant
Directed Participant Directed
----------- --------------------------------------------------------
Company
Common Loan
Total Stock Fund* Fund A* Fund B* Fund C* Fund D Fund
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair
value:
Pfizer Inc. common
stock:
Company Common
Stock Fund,
18,882,198 shares,
cost $147,881;
Fund C, 19,692,281
shares, cost
$252,905 $2,875,168 $1,407,656 $ -- $ -- $ 1,467,512 $ -- $ --
Intermediate Treasury
Bond Fund, The
Northern Trust Company,
cost $172,994 175,191 -- 175,191 -- -- -- --
Collective Stock Index
Fund, The Northern
Trust Company, cost
$80,445 200,583 -- -- 200,583 -- -- --
Other investments, at
cost which approxi-
mates fair value:
Loans to participants 45,889 -- -- -- -- -- 45,889
Cash and short-term
securities 42,086 115 1,899 132 67 39,873 --
-----------------------------------------------------------------------------------
Total investments 3,338,917 1,407,771 177,090 200,715 1,467,579 39,873 45,889
Due to(from) other funds -- -- 5 (984) 1,797 (818) --
Interest receivable 3,141 2 2,953 -- 2 184 --
Contributions
receivable from
employers, including
amounts collected
from employees 12,282 3,593 844 1,330 6,430 85 --
----------------------------------------------------------------------------------
Net assets available
for plan benefits--
Note 7 $3,354,340 $1,411,366 $180,892 $201,061 $1,475,808 $39,324 $45,889
==================================================================================
Number of units
outstanding at end
of year 30,417,979 14,022,561 9,128,896 31,943,800 3,228,137
Unit Value--Note 1 $46.15 $12.77 $21.97 $46.01 $11.89
<FN>
<F1>* Total investments represent 5% or more of the Plan's net assets available
for plan benefits.
See Notes to Financial Statements which are an integral part of these financial statements.
</FN>
</TABLE>
PFIZER SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS
Year Ended December 31, 1998
(thousands of dollars)
<TABLE>
<CAPTION>
Non-
Partici-
pant
Directed Participant Directed
--------- -------------------------------------------------------------------
Company
Common
Stock Loan
Total Fund Fund A Fund B Fund C Fund D Fund E Fund F Fund G Fund
-----------------------------------------------------------------------------------------
<S> <c <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment
income
Cash dividends:
Pfizer Inc.
common stock $ 28,573 $ 13,872 $ -- $ -- $ 14,701 $ -- $ -- $ -- $ -- $ --
Other
marketable
securities 3,259 -- -- 3,131 -- -- 52 -- 76 --
Interest on
investments 14,269 39 12,246 3 39 1,927 3 4 8 --
Interest on
loans 4,124 692 270 367 2,736 25 12 10 12 --
-----------------------------------------------------------------------------------------
50,225 14,603 12,516 3,501 17,476 1,952 67 14 96 --
Investment
management
fees--Note 4 (115) -- (54) (61) -- -- -- -- -- --
-----------------------------------------------------------------------------------------
50,110 14,603 12,462 3,440 17,476 1,952 67 14 96 --
-----------------------------------------------------------------------------------------
Realized gains
on investments,
net--Note 5:
Pfizer Inc.
common stock 314,981 148,336 -- -- 166,645 -- -- -- -- --
Other
securities 14,891 -- 210 13,835 -- -- 777 5 64 --
------------------------------------------------------------------------------------------
329,872 148,336 210 13,835 166,645 -- 777 5 64 --
------------------------------------------------------------------------------------------
Unrealized
appreciation
(depreciation)
of investments,
net--Note 6 1,628,131 776,461 3,391 37,805 808,912 -- (977) 483 2,056 --
------------------------------------------------------------------------------------------
2,008,113 939,400 16,063 55,080 993,033 1,952 (133) 502 2,216 --
------------------------------------------------------------------------------------------
Contributions:
Employees 124,510 -- 8,387 18,340 92,479 1,443 1,035 1,203 1,623 --
Employers 46,058 46,058 -- -- -- -- -- -- -- --
Withdrawals--
Notes 5 and 7 (487,237) (207,733) (36,136) (25,051) (204,444) (7,318) (185) (370) (593) (5,407)
Loan transaction
transfers, net -- (545) (184) (92) (3,484) (122) (4) (5) (23) 4,459
Transfers at
fair value, net -- -- 39,702 (18,641) (59,844) 13,046 8,291 7,016 10,430 --
------------------------------------------------------------------------------------------
(316,669) (162,220) 11,769 (25,444) (175,293) 7,049 9,137 7,844 11,437 (948)
------------------------------------------------------------------------------------------
Net increase
(decrease) 1,691,444 777,180 27,832 29,636 817,740 9,001 9,004 8,346 13,653 (948)
Net assets
available for
plan benefits--
Note 7:
Beginning of
year 3,354,340 1,411,366 180,892 201,061 1,475,808 39,324 -- -- -- 45,889
-------------------------------------------------------------------------------------------
End of year $5,045,784 $2,188,546 $208,724 $230,697 $2,293,548 $48,325 $9,004 $8,346 $13,653 $44,941
===========================================================================================
<FN>
<F1> See Notes to Financial Statements which are an integral part of these financial statements.
</FN>
</TABLE
PFIZER SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS
Year Ended December 31, 1997
(thousands of dollars)
</TABLE>
<TABLE>
<CAPTION>
Non-
Participant
Directed Participant Directed
----------- ---------------------------------------------------------
Company
Common Loan
Total Stock Fund Fund A Fund B Fund C Fund D Fund
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income
Cash dividends:
Pfizer Inc. common
stock $ 26,444 $ 13,060 $ -- $ -- $ 13,384 $ -- $ --
Other marketable
securities 2,906 -- -- 2,906 -- -- --
Interest on investments 13,574 38 11,698 7 22 1,809 --
Interest on loans 3,829 660 357 404 2,384 24 --
-------------------------------------------------------------------------------------
46,753 13,758 12,055 3,317 15,790 1,833 --
Investment management
fees--Note 4 (95) -- (49) (46) -- -- --
-------------------------------------------------------------------------------------
46,658 13,758 12,006 3,271 15,790 1,833 --
-------------------------------------------------------------------------------------
Realized gains (losses)
on investments, net--
Note 5:
Pfizer Inc. common
stock 98,602 51,016 -- -- 47,586 -- --
Other securities (286) -- (1,297) 1,011 -- -- --
-------------------------------------------------------------------------------------
98,316 51,016 (1,297) 1,011 47,586 -- --
-------------------------------------------------------------------------------------
Unrealized appreciation
of investments, net--
Note 6 1,235,281 580,865 2,290 45,490 606,636 -- --
-------------------------------------------------------------------------------------
1,380,255 645,639 12,999 49,772 670,012 1,833 --
-------------------------------------------------------------------------------------
Contributions:
Employees 109,053 -- 11,125 19,525 75,158 3,245 --
Employers 41,066 41,066 -- -- -- -- --
Withdrawals--Notes 5
and 7 (206,041) (94,517) (20,340) (11,231) (69,213) (10,001) (739)
Loan transaction
transfers, net -- (822) (711) (888) (4,704) (118) 7,243
Transfers at fair
value, net -- -- 2,004 (3,632) (14,687) 16,315 --
--------------------------------------------------------------------------------------
(55,922) (54,273) (7,922) 3,774 (13,446) 9,441 6,504
--------------------------------------------------------------------------------------
Net increase 1,324,333 591,366 5,077 53,546 656,566 11,274 6,504
Net assets available
for plan benefits--
Note 7:
Beginning of year 2,030,007 820,000 175,815 147,515 819,242 28,050 39,385
--------------------------------------------------------------------------------------
End of year $3,354,340 $1,411,366 $180,892 $201,061 $1,475,808 $39,324 $45,889
======================================================================================
<FN>
<F1>
See Notes to Financial Statements which are an integral part of these financial statements.
</FN>
</TABLE>
PFIZER SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
Note 1 - Summary Plan Description
General - The Pfizer Savings and Investment Plan (the "Plan") is a
defined contribution plan which was originally adopted by Pfizer Inc.
(the "Company") in 1965 as the Pfizer Savings Plan and has been amended
from time to time since that date. Participation in the Plan is open to
all eligible employees of the Company and any corporation which, with the
consent of the Company, adopts the Plan ("Associate Companies"). The Plan
is subject to the provisions of the Employee Retirement Income Security
Act of 1974.
The Plan accepts rollover contributions by participants in certain
instances (as defined in the Plan) and values a participant's account as
of the valuation date subsequent to the receipt of the distribution
election. Participants are permitted to roll over into the Plan eligible
distributions from other qualified employer sponsored savings plans and
conduit IRAs.
The following is a general description of certain provisions of the
Plan. Refer to the Plan agreement for a complete description.
Contributions - Each participant may make contributions on an
after-tax basis and/or on a before-tax basis (that is, choose to reduce
his or her compensation and have the Company contribute on his or her
behalf). Contributions are subject to certain restrictions under the
Internal Revenue Code of 1986, as amended. Contributions of up to 2% of
compensation are matched 100% by the Company and the next 4% is matched
50%. Employee contributions in excess of 6% are not matched.
Effective February 1, 1997, the definition of earnings eligible
for contributions was expanded to include overtime pay, premium pay and
shift differentials.
Investment options - Each participant in the Plan elects to have
his or her contribution invested in any one or any combination of seven
investment funds. These funds are primarily comprised of the following:
Fund A - Intermediate U.S. Treasury bonds
Fund B - An index fund of corporate common stocks
Fund C - Common stock of the Company
Fund D - U.S. Treasury and government agency money market
investments with maturities of less than one year
Effective January 1, 1998, three new investment funds were added
to the Plan as follows:
Fund E - An index fund of common stocks of companies with market
capitalization averaging approximately $500 million.
Fund F - An index fund of common stocks of large, well-established
companies whose price-to-book ratios are, as a whole,
typically below the average for the S&P 500 index and
whose dividends are typically higher than the average for
the S&P 500 index.
Fund G - An index fund of common stocks of large, well-established
companies whose price-to-book ratios are, as a whole,
typically above the average for the S&P 500 index and
whose dividends are typically lower than average for the
S&P 500 index.
At December 31, 1998 and 1997, respectively, there were 16,685 and
15,915 employees participating in the Plan, some of whom had investments
in more than one employee investment fund. On the basis of allocations by
the employees of their contributions at December 31, 1998 and 1997,
respectively, Fund A had 4,138 and 3,965 participating employees; Fund B,
5,843 and 5,824, Fund C, 13,976 and 14,184 and Fund D, 1,031 and 610. At
December 31, 1998, Fund E had 716 participating employees; Fund F, 664
and Fund G, 979.
All Company matching contributions are invested by the trustee in a
fund designated the "Company Common Stock Fund," which consists primarily
of common stock of the Company. These contributions are non-participant
directed.
The trustee of the Plan, The Northern Trust Company, manages
investments in each of the funds and therefore, is deemed a related
party. The Plan's trust agreement provides that any portion of any of
the investment funds may, pending its permanent investment or
distribution, be invested in short-term investments.
The net assets used to calculate the unit values disclosed on the
Statement of Net Assets Available for Plan Benefits as of December 31,
1998 and 1997, have been reduced by benefits payable as of that date.
(See Note 7.)
Eligibility and Vesting - Substantially all the domestic employees
of the Company, except those covered by a collective bargaining
agreement, are eligible to enroll in the Plan on their date of hire. A
participant is immediately vested in the full value of his or her account
(i.e., participant's and employer's contributions).
Payment of Benefits - Upon separation from service, retirement or
disability, a participant may elect to receive a lump sum distribution
currently or at any time up to the later of 13 months from separation or
age 65, subject to the provisions of the Plan. In the event of a
participant's death, a spouse beneficiary may elect payment currently or
defer payments until the later of when the participant would have reached
age 65 or 13 months from date of death. A nonspouse beneficiary may
defer payment up until 13 months from the date of death.
Withdrawals - A participant in the Plan may withdraw all or part of
his or her account balance subject to the provisions of the Plan.
Loans - Plan participants are permitted to borrow against their
vested balance. The minimum amount a participant may borrow is $1,000 and
the maximum amount is the lesser of 50% of the vested account balance
reduced by any current outstanding loan balance or $50,000 reduced by the
highest outstanding loan balance in the preceding 12 months.
Under the terms of the Plan, loans must be repaid within five
years, unless the funds are used to purchase a primary residence. Primary
residence loans must be repaid over 10 or 15 years at the participant's
option. The interest rate on all loans is based on the prime rate plus
1%. Interest paid by the participant is credited to the participant's
account.
The Loan Fund reflects participant loans, repayments and other
withdrawals.
Termination - The Company expects to continue the Plan
indefinitely, but necessarily reserves the right to amend, suspend or
discontinue it in whole or in part at any time by action of the Company's
Board of Directors. In the event of termination of the Plan, each
participant shall receive the full value of his or her account balance as
though he or she had retired as of the date of such termination. No part
of the assets in the investment funds established pursuant to the Plan
will at any time revert to the Company.
Note 2 - Summary of Significant Accounting Policies
Basis of Accounting - The financial statements of the Plan are
prepared on the accrual basis of accounting. For treatment of benefits
payable, refer to Note 7. Certain reclassifications have been made to
the 1997 financial statements to conform to the 1998 presentation.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
Investment Valuation - Pfizer Inc. common stock is valued at the
closing market price on the last business day of the year. The
investments in index funds and the intermediate U.S. Treasury bond fund
are recorded at fair value based on the closing market prices of the
underlying investments of the respective fund as of the last business day
of the year. Loans to participants and cash and short-term securities are
recorded at cost which approximates fair value.
Security Transactions - Purchases and sales of securities are
reflected on a trade-date basis. Realized gains and losses on sales of
investments represent the difference between the net proceeds and the
cost of the investments (average cost if less than the entire investment
is sold).
Unrealized Appreciation (Depreciation) of Investments - Unrealized
appreciation (depreciation) of investments for the year represents the
difference between the cost of the investments and their fair value at
the end of the year. Additionally, it reflects the reversal of the
unrealized appreciation (depreciation) as of the end of the prior year.
Net Investment Income - Dividend income is recorded on the
ex-dividend date. Interest income is recorded as earned.
Pfizer Inc. Common Stock - In June 1997, the Company effected a
two-for-one stock split in the form of a 100 percent stock dividend.
Note 3 - Income Taxes
The Internal Revenue Service has determined and informed the
Company that the Plan and related trust as of May 26, 1994 were designed
in accordance with the applicable sections of the Internal Revenue Code.
The Plan has been amended since receiving the determination letter. The
Plan administrator and the Plan's legal and tax counsel believe that the
Plan is designed and is currently being operated in compliance with all
the applicable requirements. Therefore, no provision has been made for
Federal income taxes.
Contributions made to the Plan by the Company, including before-tax
contributions made on the employees' behalf by the Company and the
appreciation on all funds in the employees' account, are not taxable to
the employees under Federal income tax law while these amounts remain in
the Plan.
Note 4 - Administrative Costs
Except for certain member transfer costs and the investment
management fees, all costs and expenses of administering the Plan are
assumed by the Company.
Note 5 - Realized Gains (Losses) on Investments
The aggregate net proceeds and carrying value used in the
calculation of the realized gains (losses) on investments are as follows:
<TABLE>
<CAPTION>
Realized
Net Proceeds Cost Gains(Losses)
------------ ------- -------------
(thousands of dollars)
<S> <C> <C> <C>
Pfizer Inc. common stock
1998 $353,319 $ 38,338 $314,981
1997 119,098 20,496 98,602
Other securities
1998 $125,283 $110,392 $ 14,891
1997 92,397 92,683 (286)
</TABLE>
Realized gains from the disposal of Pfizer Inc. common stock
include $258,316 thousand in 1998 and $48,932 thousand in 1997 related to
shares distributed in kind to participants who withdrew from the Plan on
retirement or termination.
The 1998 net proceeds include $71,517, $66,120 and $53,766 thousand
related to the transfer of plan assets of the former employees of
Valleylab to U.S. Surgical Corporation, American Medical Systems (AMS) to
E.M. Warburg, Pincus & Co., LLC and Schneider to Boston Scientific
Corporation, respectively. In addition, the 1997 net proceeds include
$20,540 thousand related to the transfer of plan assets of the former
employees of the Company's divested Coty, Inc. business to the Benckiser
Incentive Savings Plan. Transfers of plan assets are reflected in
withdrawals on the Statement of Changes in Net Assets Available for Plan
Benefits.
Note 6 - Unrealized Appreciation (Depreciation) of Investments
The change in the amount of unrealized appreciation (depreciation)
was as follows:
<TABLE>
<CAPTION>
Aggregate Unrealized
-------------------------
December 31, December 31, Change
1998 1997 During 1998
----------- ------------ -----------
(thousands of dollars)
<S> <C> <C> <C>
Company Common Stock Fund $2,036,236 $1,259,775 $ 776,461
Fund A 5,588 2,197 3,391
Fund B 157,943 120,138 37,805
Fund C 2,023,519 1,214,607 808,912
Fund E (977) -- (977)
Fund F 483 -- 483
Fund G 2,056 -- 2,056
---------- ---------- ----------
$4,224,848 $2,596,717 $1,628,131
========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Aggregate Unrealized
-------------------------
December 31, December 31, Change
1997 1996 During 1997
----------- ------------ -----------
(thousands of dollars)
<S> <C> <C> <C>
Company Common Stock Fund $1,259,775 $ 678,910 $ 580,865
Fund A 2,197 (93) 2,290
Fund B 120,138 74,648 45,490
Fund C 1,214,607 607,971 606,636
---------- ---------- ----------
$2,596,717 $1,361,436 $1,235,281
========== ========== ==========
</TABLE>
Note 7 - Withdrawals and Reconciliation with Form 5500
In connection with the sale of Valleylab, Schneider and AMS, the
Plan also transferred loan balances totaling $3,914 thousand to the
buyers' plans. This amount is included in withdrawals in the Loan Fund.
For financial statement purposes, participant withdrawals and
distributions are recorded when paid rather than when processed and
approved for payment. Therefore, the net assets available for plan
benefits as of December 31, 1998 and 1997 do not reflect a reduction for
the following benefits payable to participants who had requested
withdrawals as of December 31, but which were not distributed until the
subsequent year:
<TABLE>
<CAPTION>
1998 1997
------- -------
(thousands of dollars)
<S> <C> <C>
Company Common Stock Fund $23,386 $ 7,451
Fund A 4,196 1,820
Fund B 1,054 485
Fund C 12,503 6,180
Fund D 781 957
Fund E 20 --
Fund F 75 --
Fund G 40 --
------- -------
$42,055 $16,893
======= =======
</TABLE>
For the purposes of Form 5500, such withdrawals and distributions
are recorded when processed and approved for payment. Therefore, benefits
payable to participants who have requested withdrawals have been reported
as benefit expense on Form 5500 for those years.
Note 8 - Stock Split
On April 22, 1999, the Company's Board of Directors approved a
three-for-one stock split in the form of a 200% stock dividend to all
shareholders who own shares on June 2, 1999. The Company will issue the
additional shares on June 30, 1999.
Note 9 - Subsequent Event (Unaudited)
The market value of Pfizer Inc. common stock declined subsequent
to December 31, 1998. The decline resulted in unrealized depreciation
for the period January 1, 1999 through June 10, 1999 of approximately
$444,535 thousand for the Company Common Stock Fund and $468,135
thousand for Fund C. Unrealized depreciation was based on the number of
shares in these funds as of December 31, 1998 at the closing market
price of $99.56 on June 10, 1999.
SCHEDULE 1
PFIZER SAVINGS AND INVESTMENT PLAN
ITEM 27a -- SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1998
(thousands of dollars)
<TABLE>
<CAPTION>
Number of
Interest Maturity Shares or
Rate Date Units Cost Fair Value
-------- -------- --------- -------- ----------
<S> <C> <C> <C> <C> <C>
COMPANY COMMON STOCK FUND:
- --------------------------
Pfizer Inc.* Common Stock -- -- 17,473,855 $147,996 $2,184,232
The Northern Trust Company*,
Short-Term Investment Fund Various Various 732,509 733 733
-------- ----------
Total of Company Common
Stock Fund $148,729 $2,184,965
======== ==========
FUND A:
- -------
The Northern Trust Company*,
Intermediate Treasury
Bond Fund Various Various 187,050,000 $193,651 $ 199,239
The Northern Trust Company*,
Short-Term Investment Fund Various Various 196,137 196 196
-------- ---------
Total of Fund A $193,847 $ 199,435
======== ==========
FUND B:
- -------
The Northern Trust Company*,
Collective Stock Index Fund -- -- 2,061,308 $ 71,916 $ 229,859
The Northern Trust Company*,
Short-Term Investment Fund Various Various 201,947 202 202
-------- ----------
Total of Fund B $ 72,118 $ 230,061
======== ==========
FUND C:
- -------
Pfizer Inc.* Common Stock -- -- 18,401,562 $276,676 $2,300,195
The Northern Trust Company*,
Short-Term Investment Fund Various Various 126,673 127 127
-------- ----------
Total of Fund C $276,803 $2,300,322
======== ==========
FUND D:
- -------
The Northern Trust Company*,
Government Short-Term
Investment Fund Various Various 43,408,311 $ 43,408 $ 43,408
======== ==========
FUND E:
- -------
The Northern Trust Company*,
Small Company Index Mutual
Fund -- -- 608,472 $ 8,370 $ 7,393
The Northern Trust Company*,
Short-Term Investment Fund Various Various 170,403 170 170
-------- ----------
Total of Fund E $ 8,540 $ 7,563
======== ==========
FUND F:
- -------
The Northern Trust Company*,
Collective Value Index Fund -- -- 467,461 $ 7,651 $ 8,134
The Northern Trust Company*,
Short-Term Investment Fund Various Various 52,109 52 52
-------- ----------
Total of Fund F $ 7,703 $ 8,186
======== ==========
FUND G:
- -------
The Northern Trust Company*,
Collective Stock Index Fund -- -- 15,273 $ 439 $ 464
The Northern Trust Company*,
Collective Growth Equity
Index Fund -- -- 312,674 8,780 10,811
The Northern Trust Company*,
Short-Term Investment Fund Various Various 665,663 666 666
-------- ----------
Total of Fund G $ 9,885 $ 11,941
======== ==========
LOAN FUND:
- ----------
Loans to participants Various Various -- $ 44,941 $ 44,941
======== ==========
<FN>
<F1>*Party-in-interest
</FN>
</TABLE>
SCHEDULE 2
PFIZER SAVINGS AND INVESTMENT PLAN
ITEM 27d -- SCHEDULE OF REPORTABLE TRANSACTIONS
Year Ended December 31, 1998
(thousands of dollars)
<TABLE>
<CAPTION>
COMPANY COMMON
STOCK FUND AND
FUND C:
Securities Purchased Number of Number of
- -------------------- Transactions Shares Cost
------------ ---------- -------
<S> <C> <C> <C>
Pfizer Inc. common stock 27 650,199 $62,248
</TABLE>
<TABLE>
<CAPTION>
Securities Disposed* Fair Value
- ------------------- Number of Number of of Disposed Realized
Transactions Shares Cost Shares Gains
------------ ---------- ------- ----------- --------
<S> <C> <C> <C> <C> <C>
Pfizer Inc. common stock 598 3,349,261 $38,338 $353,319 $314,981
<FN>
<F1>*Dispositions represent sales of stock and shares distributed in kind
to members who withdrew from the Plan on retirement or termination.
</FN>
</TABLE>
INDEPENDENT AUDITORS' REPORT
To the Savings and Investment Plan Committee
Pfizer Savings and Investment Plan:
We have audited the accompanying statements of net assets available
for plan benefits of the Pfizer Savings and Investment Plan (the Plan) as
of December 31, 1998 and 1997 and the related statements of changes in
net assets available for plan benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan
benefits of the Plan as of December 31, 1998 and 1997 and the changes in
net assets available for plan benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on
the basic financial statements taken as a whole. The supplemental
schedules of (1) assets held for investment purposes and (2) reportable
transactions, as of and for the year ended December 31, 1998 are
presented for the purpose of additional analysis and are not a required
part of the basic financial statements but are supplementary information
required by the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974.
The Fund Information in the statements of net assets available for plan
benefits and the statements of changes in net assets available for plan
benefits is presented for purposes of additional analysis rather than to
present the net assets available for plan benefits and changes in net
assets available for plan benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing
procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/ KPMG LLP
KPMG LLP
New York, New York
May 27, 1999
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the members of the Savings and Investment Plan Committee have
duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
PFIZER SAVINGS AND INVESTMENT PLAN
By: /s/ David L. Shedlarz
David L. Shedlarz
Executive Vice President and
Chief Financial Officer
Chair, Savings and Investment
Plan Committee
Date: June 16, 1999
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
To the Savings and Investment Plan Committee
Pfizer Savings and Investment Plan:
We consent to the use of our report dated May 27, 1999 included
herein and incorporated herein by reference in the Registration Statement
on Form S-8 dated October 5, 1994 (File No. 33-55771) which report
relates to the statements of net assets available for plan benefits of
the Pfizer Savings and Investment Plan as of December 31, 1998 and 1997,
and the related statements of changes in net assets available for plan
benefits for the years then ended, and appears in the December 31, 1998
annual report on Form 11-K of the Pfizer Savings and Investment Plan.
/s/ KPMG LLP
KPMG LLP
New York, New York
June 16, 1999
