Coca Cola 2005 Annual Report Download - page 20

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infrastructure for digital marketing activities and electronic communications among our locations around the
world and between Company personnel and our bottlers, other customers and suppliers. Security breaches of
this infrastructure can create system disruptions, shutdowns or unauthorized disclosure of confidential
information. If we are unable to prevent such breaches, our operations could be disrupted or we may suffer
financial damage or loss because of lost or misappropriated information.
We may be required to recognize additional impairment charges.
We assess our goodwill, trademarks and other intangible assets and our long-lived assets as and when
required by generally accepted accounting principles in the United States to determine whether they are
impaired. In 2005, we recorded impairment charges of approximately $89 million related to our operations and
investments in the Philippines, while in 2004 we recorded impairment charges of approximately $374 million
primarily related to franchise rights at Coca-Cola Erfrischungsgetraenke AG (‘‘CCEAG’’). If market conditions
in Germany, India or the Philippines deteriorate further or structural changes we have implemented have
negative effects on our operating results in these markets, we may be required to record additional impairment
charges. In addition, unexpected declines in our operating results and future structural changes or divestitures in
these and other markets may also result in impairment charges. Additional impairment charges would reduce
our reported earnings for the periods in which they are recorded.
Global or regional catastrophic events could impact our operations and financial results.
Because of our global presence and worldwide operations, our business can be affected by large-scale
terrorist acts, especially those directed against the United States or other major industrialized countries; the
outbreak or escalation of armed hostilities; major natural disasters; or widespread outbreaks of infectious
diseases such as avian influenza or severe acute respiratory syndrome (generally known as SARS). Such events
could impair our ability to manage our business around the world, could disrupt our supply of raw materials, and
could impact production, transportation and delivery of concentrates, syrups and finished products. In addition,
such events could cause disruption of regional or global economic activity, which can affect consumers’
purchasing power in the affected areas and, therefore, reduce demand for our products.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our worldwide headquarters is located on a 35-acre office complex in Atlanta, Georgia. The complex
includes the approximately 621,000 square foot headquarters building, the approximately 870,000 square foot
Coca-Cola North America building and the approximately 264,000 square foot Coca-Cola Plaza building. The
complex also includes several other buildings, including the technical and engineering facilities, the learning
center and the reception center. Our Company leases approximately 250,000 square feet of office space at 10
Glenlake Parkway, Atlanta, Georgia, which we currently sublease to third parties. In addition, we lease
approximately 174,000 square feet of office space at Northridge Business Park, Dunwoody, Georgia. The North
America operating segment owns and occupies an office building located in Houston, Texas, that contains
approximately 330,000 square feet. The Company has facilities for administrative operations, manufacturing,
processing, packaging, packing, storage and warehousing throughout the United States.
As of December 31, 2005, our Company owned and operated 33 principal beverage concentrate and/or
syrup manufacturing plants located throughout the world. In addition, we own, hold a majority interest in or
otherwise consolidate under applicable accounting rules 34 operations with 80 principal beverage bottling and
canning plants located outside the United States. We also own four bottled water production facilities and lease
one such facility in the United States.
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