Pepsi 2006 Annual Report Download - page 62

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Amortization of Depreciation and
Intangible Assets Other Amortization
2006 2005 2004 2006 2005 2004
FLNA $9 $3 $3 $ 432 $ 419 $ 420
PBNA 77 76 75 282 264 258
PI 76 71 68 478 420 382
QFNA ––1 33 34 36
Total division 162 150 147 1,225 1,137 1,096
Corporate ––– 19 21 21
$162 $150 $147 $1,244 $1,158 $1,117
Net Revenue(a) Long-Lived Assets(b)
2006 2005 2004 2006 2005 2004
U.S. $20,788 $19,937 $18,329 $11,515 $10,723 $10,212
Mexico 3,228 3,095 2,724 996 902 878
United Kingdom 1,839 1,821 1,692 1,995 1,715 1,896
Canada 1,702 1,509 1,309 589 582 548
All other countries 7,580 6,200 5,207 4,725 3,948 3,339
$35,137 $32,562 $29,261 $19,820 $17,870 $16,873
(a) Represents net revenue from businesses operating in these countries.
(b) Long-lived assets represent property, plant and equipment, nonamortizable intangible assets,
amortizable intangible assets, and investments in noncontrolled affiliates. These assets are reported
in the country where they are primarily used.
Note 2 — Our Significant Accounting Policies
Revenue Recognition
We recognize revenue upon shipment
or delivery to our customers based on
written sales terms that do not allow
for a right of return. However, our pol-
icy for DSD and chilled products is to
remove and replace damaged and out-
of-date products from store shelves to
ensure that our consumers receive the
product quality and freshness that they
expect. Similarly, our policy for ware-
house-distributed products is to replace
damaged and out-of-date products.
Based on our historical experience with
this practice, we have reserved for
anticipated damaged and out-of-date
products. For additional unaudited
information on our revenue recognition
and related policies, including our pol-
icy on bad debts, see “Our Critical
Accounting Policies” in Management’s
Discussion and Analysis. We are exposed
to concentration of credit risk by our
customers, Wal-Mart and PBG. In 2006,
Wal-Mart represented approximately
9% of our total net revenue, including
concentrate sales to our bottlers which
are used in finished goods sold by them
to Wal-Mart; and PBG represented
approximately 10%. We have
not experienced credit issues with
these customers.
60
FLNA
20%
PBNA
22%
PI
38%
QFNA
3%
Other
17%
Total Assets
QFNA
2%
FLNA
24%
PBNA
24%
PI
40%
Corporate
10%
Capital Spending
Canada
5% United States
59%
Mexico
9%
United
Kingdom
5%
Other
22%
Net Revenue
Canada
3%
United States
58%
Mexico
5%
United
Kingdom
10%
Other
24%
Long-Lived Assets
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