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.