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(in millions)
PepsiCo, Inc. and Subsidiaries
Fiscal years ended December 25, 1999, December 26, 1998 and December 27, 1997
1999
1998
1997
Operating Activities
Income from continuing operations
$
2,050
$
1,993
.
$
1,491
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities
Gain on bottling transactions
(1,000
)
-
-
Bottling equity income, net
(83
)
-
-
Depreciation and amortization
1,032
1,234
1,106
Noncash portion of 1998 income tax benefit
-
(259
)
-
Noncash portion of impairment and restructuring charges
37
254
233
Deferred income taxes
529
150
51
Other noncash charges and credits, net
364
237
342
Changes in operating working capital, excluding effects of
acquisitions and dispositions
Accounts and notes receivable
(149
)
(104
)
(53
)
Inventories
(186
)
29
79
Prepaid expenses and other current assets
(203
)
(12
)
(56
)
Accounts payable and other current liabilities
310
(195
)
84
Income taxes payable
326
(116
)
142
Net change in operating working capital
98
(398
)
196
Net Cash Provided by Operating Activities
3,027
3,211
3,419
Investing Activities
Capital spending
(1,118
)
(1,405
)
(1,506
)
Acquisitions and investments in unconsolidated affiliates
(430
)
(4,537
)
(119
)
Sales of businesses
499
.
17
221
Sales of property, plant and equipment
126
134
80
Short-term investments, by original maturity
More than three months - purchases
(2,025
)
(525
)
(92
)
More than three months - maturities
2,008
584
177
Three months or less, net
12
839
(735
)
Other, net
(144
)
(126
)
(96
)
Net Cash Used for Investing Activities
(1,072
)
(5,019
)
(2,070
)
Financing Activities
Proceeds from issuances of long-term debt
3,480
990
-
Payments of long-term debt
(1,123
)
(2,277
)
(1,875
)
Short-term borrowings, by original maturity
More than three months - proceeds
3,691
2,713
146
More than three months - payments
(2,741
)
(417
)
(177
)
Three months or less, net
(2,856
)
1,753
(1,269
)
Cash dividends paid
(778
)
(757
)
(736
)
Share repurchases
(1,285
)
(2,230
)
(2,459
)
Proceeds from exercises of stock options
308
415
403
Other, net
-
-
5
Net Cash (Used for) Provided by Financing Activities
(1,304
)
190
(5,962
)
Net Cash Provided by Discontinued Operations
-
-
6,236
Effect of Exchange Rate Changes on Cash and Cash Equivalents
2
1
(2
)
Net Increase (Decrease) in Cash and Cash Equivalents
653
(1,617
)
1,621
Cash and Cash Equivalents - Beginning of Year
311
1,928
307
Cash and Cash Equivalents - End of Year
$
964
$
311
$
1,928
Supplemental Cash Flow Information
Interest paid
$
321
$
367
$
462
Income taxes paid
$
525
$
521
$
696
Schedule of Noncash Investing and Financing Activities
Fair value of assets acquired
$
717
$
5,359
$
160
Cash paid and stock issued
(438
)
(4,537
)
(134
)
Liabilities assumed
$
279
$
822
$
26
See accompanying Notes to Consolidated Financial Statements.