Pepsi 2007 Annual Report Download - page 84

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Note 14 — Supplemental Financial Information
2007 2006 2005
Accounts receivable
Trade receivables $3,670 $3,147
Other receivables 788 642
4,458 3,789
Allowance, beginning of year 64 75 $ 97
Net amounts charged/(credited) to expense 5 10 (1)
Deductions(a)
(7) (27) (22)
Other(b)
7 6 1
Allowance, end of year 69 64 $ 75
Net receivables $4,389 $3,725
Inventories(c)
Raw materials $ 1,056 $ 860
Work-in-process
157 140
Finished goods 1,077 926
$2,290 $1,926
(a) Includes accounts written off.
(b) Includes currency translation effects and other adjustments.
(c) Inventories are valued at the lower of cost or market. Cost is determined using the average, first-in,
first-out (FIFO) or last-in, first-out (LIFO) methods. Approximately 14% in 2007 and 19% in 2006 of the
inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods of
valuing these inventories were not material.
2007 2006
Other assets
Noncurrent notes and accounts receivable $ 121 $ 149
Deferred marketplace spending 205 232
Unallocated purchase price for recent acquisitions 451 196
Pension plans 635 197
Other 270 206
$ 1,682 $ 980
Accounts payable and other current liabilities
Accounts payable $2,562 $ 2,102
Accrued marketplace spending
1,607 1,444
Accrued compensation and benefits
1,287 1,143
Dividends payable 602 492
Other current liabilities
1,544 1,315
$7,602 $ 6,496
Other supplemental information
Rent expense $303 $291 $228
Interest paid $251 $215 $213
Income taxes paid, net of refunds $1,731 $2,155 $1,258
Acquisitions(a)
Fair value of assets acquired $ 1,611 $ 678 $ 1,089
Cash paid and debt issued
(1,320) (522) (1,096)
SVE minority interest eliminated – – 216
Liabilities assumed $ 291 $ 156 $ 209
(a) In 2005, these amounts include the impact of our acquisition of General Mills, Inc.’s 40.5% ownership
interest in SVE for $750 million. The excess of our purchase price over the fair value of net assets acquired
was $250 million and reported in goodwill. We also reacquired rights to distribute global brands for
$263 million which is included in other nonamortizable intangible assets.
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