and $23 million in 2005 and were recorded in other income (loss)—net in our consolidated statements of income. Exchange losses—net include the remeasurement of monetary assets and liabilities from certain currencies into functional currencies and the costs of hedging certain exposures of our consolidated balance sheets. Refer to Note 12 of Notes to Consolidated Financial Statements. 

The Company will continue to manage its foreign currency exposure to mitigate, over time, a portion of the impact of exchange rate changes on net income and earnings per share. 

Overview of Financial Position 

Our consolidated balance sheet as of December 31, 2007, compared to our consolidated balance sheet as of December 31, 2006, was impacted by the effects of translation adjustments and the following: 

increases in trade accounts receivable, inventories, and prepaid expenses and other assets of $730 million, $579 million and $637 million, respectively, primarily due to 2007 acquisitions, including glacéau, 18 German bottling and distribution operations, CCBPI, Fuze and Leao Junior (refer to Note 20 of Notes to Consolidated Financial Statements); 

increases in trademarks with indefinite lives, goodwill and other intangible assets of $3,108 million, $2,853 million and $1,123 million, respectively, primarily due to 2007 acquisitions, including glacéau, 18 German bottling and distribution operations, CCBPI, Fuze and Leao Junior (refer to Note 20 of Notes to Consolidated Financial Statements); 

an increase in the cost of property, plant and equipment of $2,533 million, primarily due to 2007 capital expenditures and acquisitions, including 18 German bottling and distribution operations and CCBPI (refer to Note 20 of Notes to Consolidated Financial Statements); 

an increase in accounts payable and accrued expenses of $1,860 million, primarily due to 2007 acquisitions, including glacéau, 18 German bottling and distribution operations, CCBPI, Fuze and Leao Junior (refer to Note 20 of Notes to Consolidated Financial Statements); 

an increase in loans and notes payable of $2,684 million, primarily due to net borrowings of commercial paper and short-term debt during 2007 to fund current- year acquisitions (refer to Note 20 of Notes to Consolidated Financial Statements); 

an increase in long-term debt of $1,963 million, primarily due to issuance of $1,750 million of notes due November 15, 2017, to repay short-term debt used to fund current-year acquisitions (refer to Note 20 of Notes to Consolidated Financial Statements); 

an increase in other liabilities of $902 million, primarily due to tax liabilities related to Interpretation No. 48 (refer to Note 17 of Notes to Consolidated Financial Statements) and additional liabilities related to 2007 acquisitions (refer to Note 20 of Notes to Consolidated Financial Statements); and 

an increase in deferred tax liabilities of $1,282 million, primarily due to 2007 acquisitions, including glacéau, 18 German bottling and distribution operations, CCBPI, Fuze and Leao Junior. Refer to Note 20 of Notes to Consolidated Financial Statements. 

Impact of Inflation and Changing Prices 

Inflation affects the way we operate in