Pepsi 2011 Annual Report Download - page 79

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2011 2010
Other assets
Noncurrent notes and accounts receivable $ 159 $ 165
Deferred marketplace spending 186 203
Pension plans 65 121
Other investments 89 653
Other 522 547
$ 1,021 $ 1,689
Accounts payable and other current liabilities
Accounts payable $ 4,083 $ 3,865
Accrued marketplace spending 1,915 1,841
Accrued compensation and benets 1,771 1,779
Dividends payable 813 766
Other current liabilities 3,175 2,672
$ 11,757 $ 10,923
2011 2010 2009
Other supplemental information
Rent expense $ 589 $ 526 $ 412
Interest paid $ 1,039 $ 1,043 $ 456
Income taxes paid, net of refunds $ 2,218 $ 1,495 $ 1,498
Note 15
Acquisitions
PBG and PAS
On February26, 2010, we acquired PBG and PAS to create a more
fully integrated supply chain and go- to-market business model,
improving the eectiveness and eciency of the distribution of our
brands and enhancing our revenue growth. The total purchase price
was approximately $12.6billion, which included $8.3billion of cash
and equity and the fair value of our previously held equity interests
in PBG and PAS of $4.3billion. The acquisitions were accounted for
as business combinations, and, accordingly, the identiable assets
acquired and liabilities assumed were recorded at their estimated
fair values at the date of acquisition. Our fair market valuations of the
identiable assets acquired and liabilities assumed have been com-
pleted and the nal valuations did not materially dier from those
fair values reported as of December25, 2010.
The following table presents unaudited consolidated pro forma
nancial information as if the closing of our acquisitions of PBG and
PAS had occurred on December27, 2009 for purposes of the nan-
cial information presented for the year ended December25, 2010;
and as if the closing of our acquisitions of PBG and PAS had occurred
on December28, 2008 for purposes of the nancial information pre-
sented for the year ended December26, 2009.
2010 2009
Net Revenue $ 59,582 $ 57,471
Net Income Attributable to PepsiCo $ 5,856 $ 6,752
Net Income Attributable to PepsiCo per Common
Share — Diluted $ 3.60 $ 4.09
The unaudited consolidated pro forma nancial information was
prepared in accordance with the acquisition method of accounting
under existing standards, and the regulations of the U.S. Securities
and Exchange Commission, and is not necessarily indicative of the
results of operations that would have occurred if our acquisitions
of PBG and PAS had been completed on the date indicated, nor is it
indicative of the future operating results of PepsiCo.
The historical unaudited consolidated nancial information has
been adjusted to give eect to pro forma events that are (1) directly
attributable to the acquisitions, (2) factually supportable, and (3)
expected to have a continuing impact on the combined results of
PepsiCo, PBG and PAS.
The unaudited pro forma results have been adjusted with respect
to certain aspects of our acquisitions of PBG and PAS to reect:
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PepsiCo and the corresponding gain resulting from the remea-
surement of our previously held equity interests in PBG and PAS;
t UIFFMJNJOBUJPOPGSFMBUFEQBSUZUSBOTBDUJPOTCFUXFFO1FQTJ$P
and PBG, and PepsiCo and PAS;
t DIBOHFTJOBTTFUTBOEMJBCJMJUJFTUPSFDPSEUIFJSBDRVJTJUJPOEBUFGBJS
values and changes in certain expenses resulting therefrom; and
t BEEJUJPOBMJOEFCUFEOFTTJODMVEJOHCVUOPUMJNJUFEUPEFCUJTTV-
ance costs and interest expense, incurred in connection with
the acquisitions.
The unaudited pro forma results do not reect future events that
either have occurred or may occur after the acquisitions, including,
but not limited to, the anticipated realization of ongoing savings
from operating synergies in subsequent periods. They also do not
give eect to certain one- time charges we expect to incur in con-
nection with the acquisitions, including, but not limited to, charges
that are expected to achieve ongoing cost savings and synergies.
PepsiCo, Inc.  Annual Report

Notes to Consolidated Financial Statements