Coca Cola 2005 Annual Report Download - page 4

Operating Segments
The Company’s operating structure is the basis for our Company’s internal financial reporting. As of
December 31, 2005, our operating structure included the following operating segments, the first six of which are
sometimes referred to as ‘‘operating groups’’ or ‘‘groups.’’
• North America
• Africa
• East, South Asia and Pacific Rim
• European Union
• Latin America
• North Asia, Eurasia and Middle East
• Corporate
Our operating structure as of December 31, 2005, reflected the changes we made during the second quarter
of 2005, when we replaced our then existing Europe, Eurasia and Middle East operating segment and Asia
operating segment with three new operating segments: European Union; East, South Asia and Pacific Rim; and
North Asia, Eurasia and Middle East. The North America operating segment included the United States,
Canada and Puerto Rico. The European Union operating segment included our operations in all 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 included our operations in China, Japan, Eurasia, the Middle East (other than Israel and the
Palestinian Territories), Russia, Ukraine and Belarus, and those in other European countries not included in the
European Union operating segment. The East, South Asia and Pacific Rim operating segment included our
operations in India, the Philippines, Southeast and West Asia, and South Pacific and Korea.
In the first quarter of 2006, the Company made certain changes to its operating structure primarily to
establish a new, separate internal organization for its consolidated bottling operations and its unconsolidated
bottling investments. This new structure will result in the reporting of a separate operating segment, along with
the six existing geographic operating segments and Corporate, beginning with the first quarter of 2006.
Except to the extent that differences between operating segments are material to an understanding of our
business taken as a whole, the description of our business in this report is presented on a consolidated basis.
For financial information about our operating segments and geographic areas, refer to Note 5 and Note 20
of Notes to Consolidated Financial Statements set forth in Part II, ‘‘Item 8. Financial Statements and
Supplementary Data’’ of this report, incorporated herein by reference. For certain risks attendant to our
non-U.S. operations, refer to ‘‘Item 1A. Risk Factors’’ below.
Products and Distribution
Our Company manufactures and sells beverage concentrates, sometimes referred to as ‘‘beverage bases,’’
and syrups, including fountain syrups. We also manufacture and sell some finished beverages, both carbonated
and noncarbonated, including certain juice and juice-drink products; sports drinks; ready-to-drink coffees and
teas; and water products.
As used in this report:
• ‘‘concentrates’’ means flavoring ingredients and, depending on the product, sweeteners used to prepare
beverage syrups or finished beverages;
2