Pepsi 2009 Annual Report Download - page 97

85PepsiCo, Inc. 2009 Annual Report
Note 13 Accumulated Other Comprehensive
Loss Attributable to PepsiCo
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
comprehensive loss is separately presented on our balance sheet
as part of common shareholders’ equity. Other comprehensive
income/(loss) attributable to PepsiCo was $900 million in 2009,
$(3,793) million in 2008 and $1,294 million in 2007. The accumu-
lated balances for each component of other comprehensive loss
attributable to PepsiCo were as follows:
2009 2008 2007
Currency translation adjustment $(1,471) $(2,271) $÷÷213
Cash flow hedges, net of tax(a) (42) (14) (35)
Unamortized pension and retiree
medical, net of tax(b) (2,328) (2,435) (1,183)
Unrealized gain on securities, net of tax 47 28 49
Other –(2) 4
Accumulated other comprehensive
loss attributable to PepsiCo $(3,794) $(4,694) $÷«(952)
(a) Includes $23 million after-tax gain in 2009, $17 million after-tax loss in 2008 and $3 million
after-tax gain in 2007 for our share of our equity investees’ accumulated derivative activity.
(b) Net of taxes of $1,211 million in 2009, $1,288 million in 2008 and $645 million in 2007. Includes
$51 million decrease to the opening balance of accumulated other comprehensive loss
attributable to PepsiCo in 2008 due to the change in measurement date. See Note 7.
Note 14 Supplemental Financial Information
2009 2008 2007
Accounts receivable
Trade receivables $4,026 $3,784
Other receivables 688 969
4,714 4,753
Allowance, beginning of year 70 69 $64
Net amounts charged to expense 40 21 5
Deductions (a) (21) (16) (7)
Other (b) 1(4) 7
Allowance, end of year 90 70 $69
Net receivables $4,624 $4,683
Inventories (c)
Raw materials $1,274 $1,228
Work-in-process 165 169
Finished goods 1,179 1,125
$2,618 $2,522
(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 10% in 2009 and
11% in 2008 of the inventory cost was computed using the LIFO method. The differences
between LIFO and FIFO methods of valuing these inventories were not material.
2009 2008
Other assets
Noncurrent notes and accounts receivable $÷«118 $÷«115
Deferred marketplace spending 182 219
Unallocated purchase price for recent acquisitions 143 1,594
Pension plans 64 28
Other 458 702
$÷«965 $2,658
Accounts payable and other current liabilities
Accounts payable $2,881 $2,846
Accrued marketplace spending 1,656 1,574
Accrued compensation and benefits 1,291 1,269
Dividends payable 706 660
Other current liabilities 1,593 1,924
$8,127 $8,273
2009 2008 2007
Other supplemental information
Rent expense $÷«412 $÷÷357 $÷÷303
Interest paid $÷«456 $÷÷359 $÷÷251
Income taxes paid, net of refunds $1,498 $«1,477 $«1,731
Acquisitions(a)
Fair value of assets acquired $÷«851 $«2,907 $«1,611
Cash paid (466) (1,925) (1,320)
Liabilities and noncontrolling interests
assumed $÷«385 $÷÷982 $÷÷291
(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.
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