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Consolidated Balance Sheet

PepsiCo, Inc. and Subsidiaries

December 27, 2014 and December 28, 2013

(in millions except per share amounts)

2014

2013

$8,958

$10,414

9,052

6,707

18,010

17,121

3,665

3,147

4,466

4,873

3,100

3,277

3,066

2,886

679

32,986

31,304

9,947

10,393

3,678

1,119

4,407

4,661

14,633

14,967

6,533

6,744

6,689

7,415

12,100

12,312

1,050

1,140

$92,023

$90,055

$9,234

$9,577

19,130

16,901

3,552

1,024

400

309

58

32,374

27,811

19,063

19,154

4,389

3,498

5,636

6,152

1,760

1,760

13,154

12,276

63,408

61,660

(5,777)

(3,432)

(42,225)

(39,091)

30,320

33,173

241

267

30,561

33,440

$92,023

$90,055

The Coca-Cola Company and PepsiCo, Inc.

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online.

Instructions

(d)For year-end 2014, what amounts were reported by Coca-Cola and PepsiCo as (1) gross deferred tax assets and (2) gross deferred tax liabilities?

(e)Do either Coca-Cola or PepsiCo disclose any net operating loss carrybacks and/or carryforwards at year-end 2014? What are the amounts, and when do the carryforwards expire?

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THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31,

2014

2013

(In millions except par value) ASSETS   CURRENT ASSETS     Cash and cash equivalents

$8,958

$10,414

    Short-term investments

9,052

6,707

  TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

18,010

17,121

    Marketable securities

3,665

3,147

    Trade accounts receivable, less allowances of $331 and $61, respectively

4,466

4,873

    Inventories

3,100

3,277

    Prepaid expenses and other assets

3,066

2,886

    Assets held for sale

679

  TOTAL CURRENT ASSETS

32,986

31,304

  EQUITY METHOD INVESTMENTS

9,947

10,393

  OTHER INVESTMENTS

3,678

1,119

  OTHER ASSETS

4,407

4,661

  PROPERTY, PLANT AND EQUIPMENT — net

14,633

14,967

  TRADEMARKS WITH INDEFINITE LIVES

6,533

6,744

  BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES

6,689

7,415

  GOODWILL

12,100

12,312

  OTHER INTANGIBLE ASSETS

1,050

1,140

                 TOTAL ASSETS

$92,023

$90,055

LIABILITIES AND EQUITY   CURRENT LIABILITIES     Accounts payable and accrued expenses

$9,234

$9,577

    Loans and notes payable

19,130

16,901

    Current maturities of long-term debt

3,552

1,024

    Accrued income taxes

400

309

    Liabilities held for sale

58

  TOTAL CURRENT LIABILITIES

32,374

27,811

  LONG-TERM DEBT

19,063

19,154

  OTHER LIABILITIES

4,389

3,498

  DEFERRED INCOME TAXES

5,636

6,152

  THE COCA-COLA COMPANY SHAREOWNERS' EQUITY     Common stock, $0.25 par value; Authorized — 11,200 shares;         Issued — 7,040 and 7,040 shares, respectively

1,760

1,760

    Capital surplus

13,154

12,276

    Reinvested earnings

63,408

61,660

    Accumulated other comprehensive income (loss)

(5,777)

(3,432)

    Treasury stock, at cost — 2,674 and 2,638 shares, respectively

(42,225)

(39,091)

  EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

30,320

33,173

  EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

241

267

  TOTAL EQUITY

30,561

33,440

      TOTAL LIABILITIES AND EQUITY

$92,023

$90,055

Explanation / Answer

d)For year-end 2014, amounts reported by Coca-Cola (Pg. 118) and PepsiCo (pg. 88 & 90)   as Coca-Cola PepsiCo (1) Gross deferred tax assets 4440 4149 (2) Gross deferred tax liabilities -9398 7348 e..NOL Carryforwards YES YES $ 6408 mlns. $ 10.4 blns. Expires in 2015 $ 0.1 bln. Expires bet. Yrs. 2016 & 2034 $ 9.8 bln C/f indefinitely $ 0.5 bln. Expires in next 5 yrs. $ 497 mlns. After 5 yrs. Balance