Pepsi 2005 Annual Report Download - page 73

71
2005 2004 2003
Accounts receivable
Trade receivables ..................................................... $2,718 $2,505
Other receivables ..................................................... 618 591
3,336 3,096
Allowance, beginning of year ................................... 97 105 $116
Net amounts (credited)/charged to expense ........ (1) 18 32
Deductions(a)........................................................ (22) (25) (43)
Other(b) ................................................................. 1(1) –
Allowance, end of year ............................................. 75 97 $105
Net receivables ........................................................ $3,261 $2,999
Inventory(c)
Raw materials.......................................................... $ 738 $ 665
Work-in-process ....................................................... 112 156
Finished goods......................................................... 843 720
$1,693 $1,541
Accounts payable and other current liabilities
Accounts payable..................................................... $1,799 $1,731
Accrued marketplace spending................................ 1,383 1,285
Accrued compensation and benefits........................ 1,062 961
Dividends payable.................................................... 431 387
Insurance accruals .................................................. 136 131
Other current liabilities............................................ 1,160 1,104
$5,971 $5,599
Other liabilities
Reserves for income taxes........................................ $1,884 $1,567
Other ........................................................................ 2,439 2,532
$4,323 $4,099
Other supplemental information
Rent expense............................................................ $228 $245 $231
Interest paid ............................................................ $213 $137 $147
Income taxes paid, net of refunds............................ $1,258 $1,833 $1,530
Acquisitions(d)
Fair value of assets acquired............................... $ 1,089 $ 78 $178
Cash paid and debt issued.................................. (1,096) (64) (71)
SVE minority interest eliminated.......................... 216 ––
Liabilities assumed.............................................. $ 209 $ 14 $107
(a) Includes accounts written off.
(b) Includes collections of previously written-off accounts and currency translation effects.
(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 17% in 2005 and 15% in 2004 of the inventory cost was computed using the LIFO method. The differences
between LIFO and FIFO methods of valuing these inventories were not material.
(d) 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 is $250 million and is included in goodwill. We also reacquired rights
to distribute global brands for $263 million which is included in other nonamortizable intangible assets.
Note 14 — Supplemental Financial Information