Coca Cola 2005 Annual Report Download - page 116

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20: OPERATING SEGMENTS (Continued)
Segment Products and Services
The business of our Company is nonalcoholic beverages. Our operating segments derive a majority of their
revenues from the manufacture and sale of beverage concentrates and syrups and, in some cases, the sale of
finished beverages. The following table summarizes the contribution to net operating revenues from Company
operations (in millions):
Year Ended December 31, 2005 2004 2003
Company operations, excluding bottling operations $ 19,687 $ 18,651 $ 17,990
Company-owned bottling operations 3,417 3,091 2,867
Consolidated net operating revenues $ 23,104 $ 21,742 $ 20,857
Method of Determining Segment Income or Loss
Management evaluates the performance of our operating segments separately to individually monitor the
different factors affecting financial performance. Segment income or loss includes substantially all of the
segment’s costs of production, distribution and administration. Our Company typically manages and evaluates
equity method investments and related income on a segment level. However, we manage certain investments,
such as our equity interests in CCE and Coca-Cola HBC, within the Corporate operating segment. Our
Company manages income taxes and financial costs, such as interest income and expense, on a global basis
within the Corporate operating segment. We evaluate segment performance based on income or loss before
income taxes.
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