$15 million of tax expense related to nondeductible goodwill write- offs associated with divestitures. Fiscal 2010 income tax expense included a $35 million increase related to the enactment of federal health care reform (the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010). This legislation changed the tax treatment of subsidies to companies that provide prescription drug benefits that are at least the equivalent of benefits under Medicare Part D (see the “Impact of Inflation” section on page 30 for additional discussion of this legislation).The fiscal 2010 tax rate also included increased benefits from the domestic manufacturing deduction. 

After-tax earnings from joint ventures for fiscal 2010 increased to $102 million compared to $92 million in the same period in fiscal 2009. In fiscal 2010, net sales for CPW grew 6 percent, due to 4 percentage points of growth from net price realization and mix, 1 percentage point from favorable foreign exchange and a 1 per- centage point increase in volume, including growth in Russia, Southeast Asia, the Middle East and Latin America. Net sales for Ha ¨agen-Dazs Japan (HDJ) decreased 4 percent, due primarily to an 11 percentage point decline in volume, partially offset by favorable foreign exchange. 

Average diluted shares outstanding decreased by 4 million in fiscal 2010 from fiscal 2009, due primarily to the timing of share repurchases including the repurchase of 21 million shares since the end of fiscal 2009, partially offset by the issuance of shares upon stock option exercises. 

## FISCAL 2010 CONSOLIDATED BALANCE SHEET ANALYSIS 

Cash and cash equivalents decreased $77 million from fiscal 2009, as discussed in the “Liquidity” section on page 30. 

Receivables increased $88 million from fiscal 2009, as a result of sales timing shifts and a $33 million increase in foreign exchange translation. The allowance for doubtful accounts was essentially unchanged from fiscal 2009. 

Inventories were essentially flat to fiscal 2009 balances. 

Prepaid expenses and other current assets decreased $91 million from fiscal 2009, due mainly to a $48 million decrease in certain equipment parts as a result of a change in the capitalization thresh- old, enabled by an upgrade to our parts management system. In 

addition, there was a $22 million decrease in notes receivable and a $19 million reduction in collateral for certain derivative contracts. 

Land, buildings, and equipment increased $93 million from fiscal 2009, as capital expenditures of $650 million were partially offset by depreciation expense of $448 million and foreign exchange impact of $32 million in fiscal 2010. 

Goodwill and other intangible assets decreased $102 million from fiscal 2009 primarily due to foreign currency translation. 

Other assets decreased $132 million from fiscal 2009, driven mainly by a $193 million decrease in our prepaid pension assets due to a decrease in the funded status of our pension plans and a $60 million decrease in noncurrent interest rate derivative receiv- ables, partially offset by an increase in advances to joint ventures, mainly CPW, of $131 million. 

Accounts payable increased $46 million to $850 million in fiscal 2010 as a result of an increase in SG&A expenses and shifts in timing. 

Long-term debt, including current portion, and notes payable decreased $650 million from fiscal 2009. In May 2010, we paid $437 million to repurchase $400 million of debt as part of a cash tender offer.We repurchased $221 million of our 6.0 percent notes due 2012 and $179 million of the 5.65 percent notes due 2012. 

The current and noncurrent portions of net deferred income taxes liability decreased $318 million from fiscal 2009, due to increased pension and post retirement liabilities and the book versus tax treatment of our deferred compensation plans. We also incurred $22 million of deferred income tax expense in fiscal 2010, including a $35 million increase in the net deferred income tax liability related to changes in the tax treatment of subsidies to companies that provide prescription drug benefits that are at least the equivalent of benefits under Medicare Part D included in the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010. 

Other current liabilities increased $280 million from fiscal 2009, primarily driven by increases in accrued taxes of $272 mil- lion and an $82 million increase in consumer marketing accruals. These increases were partially offset by a $46 million decrease in accrued interest payable. 

Other liabilities increased $186 million from fiscal 2009, driven by an increase in accrued compensation and benefits of $537 mil- lion primarily due to a decrease in the funded status of our pension plans, partially offset by a $265 million shift in taxes 

