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Consolidated Financial Statements

Consolidated Statement of Cash Flows

PepsiCo, Inc. and Subsidiaries
(in millions)

                 
Fiscal years ended December 27, 2008,
December 29, 2007 and December 30, 2006
 
2008
   
2007
   
2006
Operating Activities
               
Net income
$
5,142
 
$
5,658
 
$
5,642
Depreciation and amortization
 
1,543
   
1,426
   
1,406
Stock-based compensation expense
 
238
   
260
   
270
Restructuring and impairment charges
 
543
   
102
   
67
Excess tax benefits from share-based payment arrangements
 
(107
)
 
(208
)
 
(134
)
Cash payments for restructuring charges
 
(180
)
 
(22
)
 
(56
)
Pension and retiree medical plan contributions
 
(219
)
 
(310
)
 
(131
)
Pension and retiree medical plan expenses
 
459
   
535
   
544
Bottling equity income, net of dividends
 
(202
)
 
(441
)
 
(442
)
Deferred income taxes and other tax charges and credits
 
573
   
118
   
(510
)
Change in accounts and notes receivable
 
(549
)
 
(405
)
 
(330
)
Change in inventories
 
(345
)
 
(204
)
 
(186
)
Change in prepaid expenses and other current assets
 
(68
)
 
(16
)
 
(37
)
Change in accounts payable and other current liabilities
 
718
   
522
   
279
Change in income taxes payable
 
(180
)
 
128
   
(295
)
Other, net
 
(367
)
 
(209
)
 
(3
)
Net Cash Provided by Operating Activities
 
6,999
   
6,934
   
6,084
Investing Activities
               
Capital spending
 
(2,446
)
 
(2,430
)
 
(2,068
)
Sales of property, plant and equipment
 
98
   
47
   
49
Proceeds from (Investment in) finance assets
 
   
27
   
(25
)
Acquisitions and investments in noncontrolled affiliates
 
(1,925
)
 
(1,320
)
 
(522
)
Cash restricted for pending acquisitions
 
(40
)
 
   
Cash proceeds from sale of PBG and PAS stock
 
358
   
315
   
318
Divestitures
 
6
   
   
37
Short-term investments, by original maturity
               
More than three months – purchases
 
(156
)
 
(83
)
 
(29
)
More than three months – maturities
 
62
   
113
   
25
Three months or less, net
 
1,376
   
(413
   
2,021
Net Cash Used for Investing Activities
 
(2,667
)
 
(3,744
)
 
(194
)
Financing Activities
               
Proceeds from issuances of long-term debt
 
3,719
   
2,168
   
51
Payments of long-term debt
 
(649
)
 
(579
)
 
(157
)
Short-term borrowings, by original maturity
               
More than three months – proceeds
 
89
   
83
   
185
More than three months – payments
 
(269
)
 
(133
)
 
(358
)
Three months or less, net
 
625
   
(345
)
 
(2,168
)
Cash dividends paid
 
(2,541
)
 
(2,204
)
 
(1,854
)
Share repurchases – common
 
(4,720
)
 
(4,300
)
 
(3,000
)
Share repurchases – preferred
 
(6
)
 
(12
)
 
(10
)
Proceeds from exercises of stock options
 
620
   
1,108
   
1,194
Excess tax benefits from share-based payment arrangements
 
107
   
208
   
134
Net Cash Used for Financing Activities
 
(3,025
)
 
(4,006
)
 
(5,983
)
Effect of exchange rate changes on cash and cash equivalents
 
(153
)
 
75
   
28
Net Increase/(Decrease) in Cash and Cash Equivalents
 
1,154
   
(741
)
 
(65
)
Cash and Cash Equivalents, Beginning of Year
 
910
   
1,651
   
1,716
Cash and Cash Equivalents, End of Year
$
2,064
 
$
910
 
$
1,651