Coca Cola 2004 Annual Report Download - page 112

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 17: STREAMLINING COSTS (Continued)
The total streamlining initiative costs incurred for the year ended December 31, 2003 by operating segment
were as follows (in millions):
North America $ 273
Africa 12
Asia 18
Europe, Eurasia and Middle East 183
Latin America 8
Corporate 67
Total $ 561
NOTE 18: ACQUISITIONS AND INVESTMENTS
During 2004, our Company’s acquisition and investment activity totaled approximately $267 million,
primarily related to the purchase of trademarks, brands and related contractual rights in Latin America, none of
which was individually significant.
During 2003, our Company’s acquisition and investment activity totaled approximately $359 million. These
acquisitions included purchases of trademarks, brands and related contractual rights of approximately
$142 million, none of which was individually significant. Refer to Note 4. Other acquisition and investing activity
totaled approximately $217 million, and with the exception of the acquisition of Truesdale, none was individually
significant. In March 2003, our Company acquired a 100 percent ownership interest in Truesdale from CCE for
cash consideration of approximately $58 million. Truesdale owns a noncarbonated beverage production facility.
The purchase price was allocated primarily to property, plant and equipment acquired. No amount was allocated
to intangible assets. Truesdale is included in our North America operating segment.
During 2002, our Company’s acquisition and investment activity totaled approximately $1,144 million.
Included in this $1,144 million, our Company paid $544 million in cash and recorded a note payable of
approximately $600 million to finance the CCEAG acquisition described below.
In November 2001, we entered into the Control and Profit and Loss Transfer Agreement (‘‘CPL’’) with
CCEAG. Under the terms of the CPL, our Company acquired management control of CCEAG. In
November 2001, we also entered into a Pooling Agreement with certain shareowners of CCEAG that provided
our Company with voting control of CCEAG. Both agreements became effective in February 2002, when our
Company acquired control of CCEAG for a term ending no later than December 31, 2006. CCEAG is included
in our Europe, Eurasia and Middle East operating segment. As a result of acquiring control of CCEAG, our
Company is working to help focus its sales and marketing programs and assist in developing the business. This
transaction was accounted for as a business combination, and the results of CCEAG’s operations have been
included in the Company’s consolidated financial statements since February 2002. Prior to February 2002, our
Company accounted for CCEAG under the equity method of accounting. As of December 31, 2002, our
Company had approximately a 41 percent ownership interest in the outstanding shares of CCEAG. In return for
control of CCEAG, pursuant to the CPL we guaranteed annual payments, in lieu of dividends by CCEAG, to all
other CCEAG shareowners. These guaranteed annual payments equal 0.76 euro for each CCEAG share
outstanding. Additionally, all other CCEAG shareowners entered into either a put or a put/call option
agreement with the Company, exercisable at any time up to the December 31, 2006 expiration date. In 2003, one
of the other shareowners exercised its put option which represented approximately 29 percent of the outstanding
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