Pepsi 2008 Annual Report Download - page 92

90 PepsiCo, Inc. 2008 Annual Report
Notes to Consolidated Financial Statements
Note 13 Accumulated Other
Comprehensive Loss
Comprehensive income is a measure of income which includes
both net income and other comprehensive income or loss. Other
comprehensive income or loss results from items deferred from
recognition into our income statement. Accumulated other com-
prehensive loss is separately presented on our balance sheet
as part of common shareholders’ equity. Other comprehensive
(loss)/income was $(3,793) million in 2008, $1,294 million in
2007 and $456 million in 2006. The accumulated balances for
each component of other comprehensive loss were as follows:
2008 2007 2006
Currency translation adjustment $(2,271) $÷÷213 $÷«(506)
Cash ow hedges, net of tax (a) (14) (35) 4
Unamortized pension and retiree medical,
net of tax (b) (2,435) (1,183) (1,782)
Unrealized gain on securities, net of tax 28 49 40
Other (2) 4 (2)
Accumulated other comprehensive loss $(4,694) $÷«(952) $(2,246)
(a) Includes $17 million after-tax loss in 2008 and $3 million after-tax gain in 2007 and 2006 for
our share of our equity investees’ accumulated derivative activity.
(b) Net of taxes of $1,288 million in 2008, $645 million in 2007 and $919 million in 2006.
Includes $51 million decrease to the opening balance of accumulated other comprehensive
loss in 2008 due to the change in measurement date. See Note 7.
Note 14 Supplemental Financial Information
2008 2007 2006
Accounts receivable
Trade receivables $3,784 $3,670
Other receivables 969 788
4,753 4,458
Allowance, beginning of year 69 64 $«75
Net amounts charged to expense 21 5 10
Deductions (a) (16) (7) (27)
Other (b) (4) 7 6
Allowance, end of year 70 69 $«64
Net receivables $4,683 $4,389
Inventories (c)
Raw materials $1,228 $1,056
Work-in-process 169 157
Finished goods 1,125 1,077
$2,522 $2,290
(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,
rst-in,rst-out(FIFO)orlast-in,rst-out(LIFO)methods.Approximately14%in2008and
2007oftheinventorycostwascomputedusingtheLIFOmethod.Thedifferencesbetween
LIFOandFIFOmethodsofvaluingtheseinventorieswerenotmaterial.
2008 2007
Other assets
Noncurrent notes and accounts receivable $÷«115 $÷«121
Deferred marketplace spending 219 205
Unallocated purchase price for recent acquisitions 1,594 451
Pension plans 28 635
Other 702 270
$2,658 $1,682
Accounts payable and other current liabilities
Accounts payable $2,846 $2,562
Accrued marketplace spending 1,574 1,607
Accrued compensation and benets 1,269 1,287
Dividends payable 660 602
Other current liabilities 1,924 1,544
$8,273 $7,602
2008 2007 2006
Other supplemental information
Rent expense $÷÷357 $«÷«303 $÷«291
Interest paid $÷÷359 $«÷«251 $÷«215
Income taxes paid, net of refunds $«1,477 $«1,731 $2,155
Acquisitions (a)
Fair value of assets acquired $«2,907 $«1,611 $÷«678
Cash paid and debt issued (1,925) (1,320) (522)
Liabilities assumed $÷÷982 $÷÷291 $÷«156
(a) During2008,togetherwithPBG,wejointlyacquiredLebedyansky,foratotalpurchaseprice
of$1.8billion.Lebedyanskyisowned25%and75%byPBGandus,respectively.Theunal-
locatedpurchasepriceisincludedinotherassetsonourbalancesheetandLebedyansky’s
nancialresultssubsequenttotheacquisitionarereectedinourincomestatement.