Coca Cola 2005 Annual Report Download - page 114

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18: STREAMLINING COSTS (Continued)
after-tax. These expenses were recorded in our consolidated statements of income line item other operating
charges.
The table below summarizes the costs incurred in 2003, the balances of accrued streamlining expenses, and
the movement in those balances as of and for the years ended December 31, 2003, 2004 and 2005 (in millions):
Accrued Accrued Accrued
Costs Noncash Balance Noncash Balance Noncash Balance
Incurred and December 31, and December 31, and December 31,
in 2003 Payments Exchange 2003 Payments Exchange 2004 Payments Exchange 2005
Severance pay and
benefits $ 248 $ (113) $ 3 $ 138 $ (118) $ (2) $ 18 $ (14) $ (2) $ 2
Retirement related
benefits 43 — (14) 29 — (29) — — — —
Outside services—
legal,
outplacement,
consulting 36 (25) — 11 (10) (1) — — — —
Other direct costs 133 (81) (1) 51 (29) 1 23 (6) (1) 16
Total1$ 460 $ (219) $ (12) $ 229 $ (157) $ (31) $ 41 $ (20) $ (3) $ 18
Asset impairments $ 101
Total costs incurred $ 561
1As of December 31, 2004 and 2005, $41 million and $18 million, respectively, was included in our consolidated balance sheets line item accounts
payable and accrued expenses.
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
East, South Asia and Pacific Rim 11
European Union 157
Latin America 8
North Asia, Eurasia and Middle East 33
Corporate 67
Total $ 561
NOTE 19: ACQUISITIONS AND INVESTMENTS
During 2005, our Company’s acquisition and investment activity totaled approximately $637 million and
included the acquisition of the German soft drink bottling company Bremer Erfrischungsgetraenke GmbH
(‘‘Bremer’’) for approximately $160 million from InBev SA. This transaction was accounted for as a business
combination, and the results of Bremer’s operations have been included in the Company’s consolidated financial
statements beginning in September 2005. The Company recorded approximately $54 million of property, plant
and equipment, approximately $85 million of franchise rights and approximately $58 million of goodwill related
to this acquisition. The franchise rights have been assigned an indefinite life, and the goodwill was allocated to
the Germany and Nordic reporting unit within the European Union operating segment.
112