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Notes to Consolidated Financial Statements

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, first-in, first-out (FIFO) or last-in, first-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 benefits
 
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 unallocated purchase price is included in other assets on our balance sheet and Lebedyansky’s financial results subsequent to the acquisition are reflected in our income statement.