Pepsi 2005 Annual Report Download - page 53

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51
Consolidated Statement of Cash Flows
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 31, 2005, December 25, 2004 and December 27, 2003
(in millions) 2005 2004 2003
Operating Activities
Net income................................................................................................................................. $ 4,078 $ 4,212 $ 3,568
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization ............................................................................................. 1,308 1,264 1,221
Stock-based compensation expense..................................................................................... 311 368 407
Restructuring and impairment charges ............................................................................... –150 147
Cash payments for merger-related costs and restructuring charges ................................... (22) (92) (109)
Tax benefit from discontinued operations............................................................................. –(38) –
Pension and retiree medical plan contributions................................................................... (877) (534) (605)
Pension and retiree medical plan expenses.......................................................................... 464 395 277
Bottling equity income, net of dividends.............................................................................. (411) (297) (276)
Deferred income taxes and other tax charges and credits ................................................... 440 (203) (286)
Merger-related costs............................................................................................................. ––59
Other non-cash charges and credits, net............................................................................. 145 166 101
Changes in operating working capital, excluding effects of acquisitions and divestitures
Accounts and notes receivable........................................................................................ (272) (130) (220)
Inventories ...................................................................................................................... (132) (100) (49)
Prepaid expenses and other current assets .................................................................... (56) (31) 23
Accounts payable and other current liabilities................................................................ 188 216 (11)
Income taxes payable...................................................................................................... 609 (268) 182
Net change in operating working capital.............................................................................. 337 (313) (75)
Other..................................................................................................................................... 79 (24) (101)
Net Cash Provided by Operating Activities .............................................................................. 5,852 5,054 4,328
Investing Activities
Snack Ventures Europe (SVE) minority interest acquisition ....................................................... (750) ––
Capital spending ....................................................................................................................... (1,736) (1,387) (1,345)
Sales of property, plant and equipment..................................................................................... 88 38 49
Other acquisitions and investments in noncontrolled affiliates ................................................ (345) (64) (71)
Cash proceeds from sale of PBG stock ...................................................................................... 214 ––
Divestitures................................................................................................................................ 352 46
Short-term investments, by original maturity
More than three months — purchases ................................................................................ (83) (44) (38)
More than three months — maturities ................................................................................ 84 38 28
Three months or less, net ..................................................................................................... (992) (963) (940)
Net Cash Used for Investing Activities..................................................................................... (3,517) (2,330) (2,271)
Financing Activities
Proceeds from issuances of long-term debt .............................................................................. 25 504 52
Payments of long-term debt ......................................................................................................(177) (512) (641)
Short-term borrowings, by original maturity
More than three months — proceeds................................................................................... 332 153 88
More than three months — payments ................................................................................. (85) (160) (115)
Three months or less, net ..................................................................................................... 1,601 1,119 40
Cash dividends paid.................................................................................................................. (1,642) (1,329) (1,070)
Share repurchases — common ................................................................................................. (3,012) (3,028) (1,929)
Share repurchases — preferred ................................................................................................ (19) (27) (16)
Proceeds from exercises of stock options................................................................................... 1,099 965 689
Net Cash Used for Financing Activities.................................................................................... (1,878) (2,315) (2,902)
Effect of exchange rate changes on cash and cash equivalents............................................... (21) 51 27
Net Increase/(Decrease) in Cash and Cash Equivalents......................................................... 436 460 (818)
Cash and Cash Equivalents, Beginning of Year ....................................................................... 1,280 820 1,638
Cash and Cash Equivalents, End of Year ................................................................................. $ 1,716 $ 1,280 $ 820
See accompanying notes to consolidated financial statements.