Coca Cola 2005 Annual Report Download - page 115

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19: ACQUISITIONS AND INVESTMENTS (Continued)
In August 2005, we completed the acquisition of the remaining 49 percent interest in the business of CCDA
Waters L.L.C. (‘‘CCDA’’) not previously owned by our Company. Our Company and Danone Waters of North
America, Inc. (‘‘DWNA’’) had formed CCDA in July 2002 for the production, marketing and distribution of
DWNA’s bottled spring and source water business in the United States. This transaction was accounted for as a
business combination, and the consolidated results of CCDA’s operations have been included in the Company’s
consolidated financial statements since July 2002. CCDA is included in our North America operating segment.
In July 2005, the Company acquired Sucos Mais, a Brazilian juice company. The results of Sucos Mais have been
included in our consolidated financial statements since July 2005.
Assuming the results of these businesses had been included in operations beginning on January 1, 2005, pro
forma financial data would not be required due to immateriality.
On April 20, 2005, our Company and Coca-Cola HBC jointly acquired Multon for a total purchase price of
approximately $501 million, split equally between the Company and Coca-Cola HBC. The Company’s
investment in Multon is accounted for under the equity method. Equity income—net includes our proportionate
share of the results of Multon’s operations beginning April 20, 2005.
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. Other acquisition and investing activity totaled
approximately $217 million, none of which were individually significant. In March 2003, our Company acquired a
100 percent ownership interest in Truesdale from our equity method investee 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.
NOTE 20: OPERATING SEGMENTS
During 2005, the Company made certain changes to its operating structure impacting its Europe, Eurasia
and Middle East operating segment and its Asia operating segment. The Company replaced these operating
segments with three new operating segments: the European Union operating segment; the North Asia, Eurasia
and Middle East operating segment; and the East, South Asia and Pacific Rim operating segment. The
European Union operating segment includes the Company’s operations in all of the current member states of
the European Union as well as the European Free Trade Association countries, Switzerland, Israel and the
Palestinian Territories, and Greenland. The North Asia, Eurasia and Middle East operating segment includes
the Company’s operations in China, Japan, Eurasia and Middle East (other than Israel and the Palestinian
Territories), Russia, Ukraine and Belarus, and other European countries not included in the European Union
operating segment. The East, South Asia and Pacific Rim operating segment includes the Company’s operations
in India, the Philippines, Southeast and West Asia, and South Pacific and Korea. As of December 31, 2005, our
Company’s operating structure consisted of the following operating segments: North America; Africa; East,
South Asia and Pacific Rim; European Union; Latin America; North Asia, Eurasia and Middle East; and
Corporate. Prior year amounts have been reclassified to conform with the new operating structure described
above.
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