Pepsi 2010 Annual Report Download - page 99

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Notes to Consolidated Financial Statements
98 PepsiCo, Inc. 2010 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 $164million in 2010,
$900million in 2009 and $(3,793)million in 2008. The accumu-
lated balances for each component of other comprehensive loss
attributable to PepsiCo were as follows:
2010 2009 2008
Currency translation adjustment $(1,159) $(1,471) $(2,271)
Cash ow hedges, net of tax(a) (100) (42) (14)
Unamortized pension and retiree medical,
net of tax(b) (2,442) (2,328) (2,435)
Unrealized gain on securities, net of tax 70 47 28
Other 1 – (2)
Accumulated other comprehensive
loss attributable to PepsiCo $(3,630) $(3,794) $(4,694)
(a) Includes $23million after-tax gain in 2009 and $17million after-tax loss in 2008
for our share of our equity investees’ accumulated derivative activity.
(b) Net of taxes of $1,322million in 2010, $1,211million in 2009 and $1,288million
in 2008. Includes $51million decrease to the opening balance of accumulated
other comprehensive loss attributable to PepsiCo in 2008 due to a change in
measurement date for our pension and retiree medical plans.
Note 14 Supplemental
FinancialInformation
2010 2009 2008
Accounts receivable
Trade receivables $5,514 $4,026
Other receivables 953 688
6,467 4,714
Allowance, beginning of year 90 70 $ 69
Net amounts charged to expense 12 40 21
Deductions(a) (37) (21) (16)
Other(b) 79 1 (4)
Allowance, end of year 144 90 $ 70
Net receivables $6,323 $4,624
Inventories(c)
Raw materials
$1,654 $1,274
Work-in-process 128 165
Finished goods 1,590 1,179
$3,372 $2,618
(a) Includes accounts written off.
(b) Includes adjustments related to our acquisitions of PBG and PAS, 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 8% in 2010 and 10% in 2009 of the inventory cost was
computed using the LIFO method. The differences between LIFO and FIFO
methods of valuing these inventories were not material.
2010 2009
Other assets
Noncurrent notes and accounts receivable $ 165 $ 118
Deferred marketplace spending 203 182
Unallocated purchase price for recent acquisitions – 143
Pension plans 121 64
Other investments(a) 653 89
Other 547 369
$ 1,689 $ 965
Accounts payable and other current liabilities
Accounts payable $ 3,865 $2,881
Accrued marketplace spending 1,841 1,656
Accrued compensation and benets 1,779 1,291
Dividends payable 766 706
Other current liabilities 2,672 1,593
$10,923 $8,127
(a) In 2010, includes our investment in WBD of $549million. This investment is
accounted for as an available-for-sale security with any unrealized gains or
losses recorded in other comprehensive income.