Incorporating Additional Information

1. Incorporating Additional Information Kristen Bachteler March 31, 2014 Module 10

2. Agenda Review of Module 10 Deferred Tax Assets Property, Plant & Equipment Goodwill & Other Intangible Assets Accrued Expenses Debt Selling, general & administrative expense Sales Segment Product Expanded Financials Issues with Module 10

3. Deferred Tax Assets

4. Calculation of Additional Asset

5. Property, Plant, & Equipment

6. Goodwill & Other Intangible Assets

7. Accrued Expenses

8. Debt

9. Selling, General, & Administrative Expense • Advertising Expense (Note 1 – Summary of Significant Accounting Policies) • $1.1 billion in 2013; $1 billion in 2012; $930 million in 2011 • Intangible Asset Amortization (Note 4 – Goodwill and Other Intangible Assets) • ($2,002) in 2013 ; ($1,042) in 2012

10. Sales by Segment & Product

11. Expanded Balance Sheet

12. Expanded Balance Sheet (Continued)

13. Expanded Income Statement

14. Issues to Resolve with Mod 10 • Calculation of implied additional deferred tax liability • Additional info in Note 3 about non-current liabilities suggest Deferred Tax Liabilities of $16,489 & $13,847 in 2013 and 2012 respectfully • How do reconcile with face of balance sheet & other note information (presented earlier on DTA slide) • Which breakdown of sales is best – geographic or product? • Presented geographic operating segment because that is how management views it • Not as much detail on selling, general, & administrative expense • No mention of: • pension expense or retirement benefits • preferred stock issued or outstanding • non-controlling interest