Coca Cola 2005 Annual Report Download - page 39

The following table presents the difference between calculated fair values, based on quoted closing prices of
publicly traded shares, and our Company’s carrying values for significant investments in publicly traded bottlers
accounted for as equity method investees (in millions):
Fair Carrying
December 31, 2005 Value Value Difference
Coca-Cola Enterprises Inc. $ 3,239 $ 1,731 $ 1,508
Coca-Cola Hellenic Bottling Company S.A. 1,645 1,039 606
Coca-Cola FEMSA, S.A. de C.V. 2,016 982 1,034
Coca-Cola Amatil Limited 1,367 748 619
Grupo Continental, S.A. 262 160 102
Coca-Cola Embonor S.A. 164 186 (22)1
Coca-Cola Bottling Company Consolidated 107 66 41
Coca-Cola West Japan Company Ltd. 94 116 (22)1
Embotelladoras Polar S.A. 85 56 29
$ 8,979 $ 5,084 $ 3,895
1The current decline in value is considered to be temporary.
Other Assets
Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our
bottling system and increasing unit case volume. Additionally, our Company advances payments to certain
customers to fund future marketing activities intended to generate profitable volume and expenses such
payments over the period benefited. Advance payments are also made to certain customers for distribution
rights. Payments under these programs are generally capitalized and reported as other assets in our consolidated
balance sheets. Management evaluates the recoverability of the carrying value of these assets when facts and
circumstances indicate that the carrying value of these assets may not be recoverable by preparing estimates of
sales volume and the resulting gross profit and cash flows. If the carrying value of the assets is assessed to be
recoverable, it is amortized over the periods benefited. If the carrying value of these assets is considered to be
not recoverable, an impairment is recognized, resulting in a write-down of assets.
Property, Plant and Equipment
Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of
property, plant and equipment should be assessed. Such events or changes may include a significant decrease in
market value, a significant change in the business climate in a particular market, or a current-period operating or
cash flow loss combined with historical losses or projected future losses. If an event occurs or changes in
circumstances are present, we estimate the future cash flows expected to result from the use of the asset and its
eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is
less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount
by which the carrying amount exceeds the fair value.
Goodwill, Trademarks and Other Intangible Assets
Statement of Financial Accounting Standards (‘‘SFAS’’) No. 142, ‘‘Goodwill and Other Intangible Assets,’’
classifies intangible assets into three categories: (1) intangible assets with definite lives subject to amortization;
(2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. For intangible assets with
definite lives, tests for impairment must be performed if conditions exist that indicate the carrying value may not
be recoverable. For intangible assets with indefinite lives and goodwill, tests for impairment must be performed
at least annually or more frequently if events or circumstances indicate that assets might be impaired. Our equity
method investees also perform such tests for impairment for intangible assets and/or goodwill. If an impairment
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