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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 18: ACQUISITIONS AND INVESTMENTS (Continued)
consolidated results of CCDA’s operations have been included in the Company’s financial statements since
July 2002. This business combination expanded our water brands to include a national offering in all sectors of
the water category with purified, spring and source waters. CCDA is included in our North America operating
segment.
In January 2002, our Company and CCBPI finalized the purchase of RFM Corp.’s (‘‘RFM’’) approximate
83 percent interest in CBC, a publicly traded Philippine beverage company. CBC is an established carbonated
soft-drink business in the Philippines and was included in our Asia operating segment. The original sale and
purchase agreement with RFM was entered into in November 2001. As of the date of this sale and purchase
agreement, the Company began supplying concentrate for this operation. The purchase of RFM’s interest was
finalized on January 3, 2002. In March 2002, a tender offer was completed with our Company and CCBPI
acquiring all shares of the remaining minority share owners except for shares representing a 1 percent interest in
CBC. This transaction was accounted for as a business combination, and the results of CBC’s operations were
included in the Company’s financial statements from January 2002 to March 2003.
The Company and CCBPI agreed to restructure the ownership of the operations of CBC, and this
transaction was completed in April 2003. This transaction resulted in the Company acquiring all the trademarks
of CBC and CCBPI owning approximately 99 percent of the outstanding shares of CBC. Accordingly, CBC was
deconsolidated by the Company. No gain or loss was recorded by our Company upon completion of the
transaction, as the fair value of the assets exchanged was approximately equal. Additionally, there was no impact
on our cash flows related to this transaction.
Our Company acquired controlling interests in CCDA and CBC for total combined consideration of
approximately $328 million. As of December 31, 2003, the Company allocated approximately $56 million of the
purchase price for these acquisitions to goodwill and $208 million to other indefinite-lived intangible assets,
primarily trademarks, brands and licenses. This goodwill is all related to the CCDA acquisition and is allocated
to our North America operating segment.
The combined 2002 net operating revenues of CCEAG, CBC and CCDA were approximately $1.3 billion.
During 2001, our Company’s acquisition and investment activity totaled approximately $651 million. In
February 2001, our Company reached an agreement with Carlsberg for the dissolution of CCNB, a joint venture
bottler in which our Company had a 49 percent ownership interest. At that time, CCNB had bottling operations
in Sweden, Norway, Denmark, Finland and Iceland. Under this agreement with Carlsberg, our Company
acquired CCNB’s Sweden and Norway bottling operations in June 2001, increasing our Company’s ownership in
those bottlers to 100 percent. Carlsberg acquired CCNB’s Denmark and Finland bottling operations, increasing
Carlsberg’s ownership in those bottlers to 100 percent. Pursuant to the agreement, CCNB sold its Iceland
bottling operations to a third-party group of investors in May 2001.
In March 2001, our Company signed a definitive agreement with La Tondena Distillers, Inc. (‘‘La
Tondena’’) and San Miguel to acquire carbonated soft-drink, water and juice brands for $84 million. CCBPI
acquired the related manufacturing and distribution assets from La Tondena for $63 million.
In July 2001, our Company and San Miguel acquired CCBPI from Coca-Cola Amatil. Upon the completion
of this transaction, our Company owned 35 percent of the common shares and 100 percent of the Preferred B
shares, and San Miguel owned 65 percent of the common shares of CCBPI. Additionally, as a result of this
transaction, our Company’s interest in Coca-Cola Amatil was reduced from approximately 38 percent to
approximately 35 percent.
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