Pepsi 2006 Annual Report Download - page 79

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Note 14 — Supplemental Financial Information
77
2006 2005 2004
Accounts receivable
Trade receivables $3,147 $2,718
Other receivables 642 618
3,789 3,336
Allowance, beginning of year 75 97 $105
Net amounts charged/(credited) to expense 10 (1) 18
Deductions(a) (27) (22) (25)
Other(b) 61 (1)
Allowance, end of year 64 75 $ 97
Net receivables $3,725 $3,261
Inventories(c)
Raw materials $ 860 $ 738
Work-in-process 140 112
Finished goods 926 843
$1,926 $1,693
(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 19% in 2006 and 17% in 2005 of the
inventory cost was computed using the LIFO method. The differences between LIFO and FIFO methods
of valuing these inventories were not material.
2006 2005 2004
Other assets
Non-current notes and accounts receivable $149 $ 186
Deferred marketplace spending 232 281
Unallocated purchase price for
recent acquisitions 196 256
Pension plans 197 2,440
Other 206 240
$980 $3,403
Accounts payable and other current liabilities
Accounts payable $2,102 $1,799
Accrued marketplace spending 1,444 1,383
Accrued compensation and benefits 1,143 1,062
Dividends payable 492 431
Other current liabilities 1,315 1,296
$6,496 $5,971
Other liabilities
Reserves for income taxes $1,435 $1,884
Other 3,189 2,439
$4,624 $4,323
Other supplemental information
Rent expense $291 $228 $245
Interest paid $215 $213 $137
Income taxes paid, net of refunds $2,155 $1,258 $1,833
Acquisitions(a)
Fair value of assets acquired $ 678 $ 1,089 $ 78
Cash paid and debt issued (522) (1,096) (64)
SVE minority interest eliminated –216 –
Liabilities assumed $ 156 $ 209 $ 14
(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 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.
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