Chapter 3
Long-Term Assets
144
CS-2 (
3
6
)
Locate the current financial statements of a company that owns intangible assets
1
, and supply
the following information. Information has been supplied for Pfizer, as an example.
)
Note: Most large-cap companies engaged in manufacturing industrial or consumer products
will have intangible assets of some sort. You can speed up your search by using a stock filter
such as that found at
.
Set the filter as follows.
Industry = industrial products or consumer products
Security = common
Market Capitalization = $5,000 million (minimum)
Example
Item
Answer
Name of company
Pfizer Inc.
Date of financial statements
December 31, 2014
Amount of intangible assets shown on balance sheet
Goodwill—$42,069 million
Identifiable Intangible Assets less accu-
mulated amortization—$35,166 million
Total assets
$169,274 million
Intangible assets expressed as a percent of total assets
(42,069 + 35,166) ÷ 169,274
=
46%
Where is there further information about intangibles found on the
financial statements?
Note 10
What types of intangible assets does the company own?
Goodwill
Developed technology rights
Brands
License agreements
In-process R&D
Other
Amount of amortization expense for intangibles for the year
$4,039 million (from income statement)
Amortization expense as percent of profit (continuing operations)
before taxes
amortization ÷ (profit + amortization)
= 4,039 ÷ (4,039 + 9,119) = 31%
Over what period are intangibles written off? State the source.
Significant accounting policies—note K
Identifiable Intangible Assets are written
off over their estimated useful life.
Was there any impairment of goodwill or intangibles? State the
source.
Yes—as per cash flow statement and
note 10.
1 For Canadian company financial statements go to
; for U.S. companies go to
