Coca Cola 2005 Annual Report Download - page 124

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GLOSSARY
As used in this report, the following terms have the meanings indicated.
Bottler or Bottling Partner: business that buys concentrates (sometimes referred to as ‘‘beverage bases’’) or
syrups from the Company, converts them into finished packaged products and sells them to customers.
Carbonated Soft Drink: nonalcoholic carbonated beverage (sometimes referred to as ‘‘soft drinks’’) containing
flavorings and sweeteners. Excludes, among others, waters and flavored waters, juice and juice drinks, sports
drinks, and teas and coffees.
The Coca-Cola System: the Company and its bottling partners.
Coca-Cola Trademark Beverages: cola-flavored Company Trademark Beverages bearing the Coca-Cola
trademark.
Company: The Coca-Cola Company together with its subsidiaries.
Company Trademark Beverages: beverages bearing our trademarks and certain other beverage products licensed
to our Company for which our Company provides marketing support and from the sale of which it derives
income.
Concentrate: material manufactured from Company-defined ingredients and sold to bottlers to prepare finished
beverages through the addition of water and, depending on the product, sweeteners and/or carbonated water,
marketed under trademarks of the Company.
Consumer: person who drinks Company products.
Cost of Capital: after-tax blended cost of equity and borrowed funds used to invest in operating capital required
for business.
Customer: retail outlet, restaurant or other operation that sells or serves Company products directly to
consumers.
Derivatives: contracts or agreements, the value of which may change based on changes in interest rates,
exchange rates, prices of securities, or financial or commodity indices. The Company uses derivatives to reduce
our exposure to adverse fluctuations in interest and foreign currency exchange rates and other market risks.
Fountain: system used by retail outlets to dispense product into cups or glasses for immediate consumption.
Gallon: unit of physical volume measurement for concentrates (sometimes referred to as ‘‘beverage bases’’),
syrups, finished beverages and powders (in all cases, expressed in equivalent gallons of syrup) sold by the
Company to its bottling partners or other customers. Most of the Company’s revenues are based on gallon sales,
a measure of primarily ‘‘wholesale’’ activity.
Gross Profit Margin: gross profit divided by net operating revenues.
Market: when used in reference to geographic areas, territory in which the Company and its bottling partners
do business, often defined by national boundaries.
Noncarbonated Beverages: nonalcoholic beverages without carbonation including, but not limited to, waters and
flavored waters, juice and juice drinks, sports drinks, and teas and coffees.
Operating Margin: operating income divided by net operating revenues.
Per Capita Consumption: average number of servings consumed per person, per year in a specific market. Per
capita consumption of Company beverage products is calculated by multiplying our unit case volume by 24, and
dividing by the population.
Serving: eight U.S. fluid ounces of a finished beverage.
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