Coca Cola 2006 Annual Report Download - page 122

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19: ACQUISITIONS AND INVESTMENTS (Continued)
Also in the third quarter of 2006, our Company acquired Apollinaris GmbH (‘‘Apollinaris’’). Apollinaris has
been selling sparkling and still mineral water in Germany since 1862. This transaction was accounted for as a
business combination, and the results of Apollinaris’ operations have been included in the Company’s
consolidated financial statements since July 1, 2006. A portion of Apollinaris’ business is included in the
European Union operating segment, and the balance is included in the Bottling Investments operating segment.
The combined amount paid or to be paid to complete these third-quarter 2006 transactions totals
approximately $707 million. As a result of these transactions, the Company recorded approximately $707 million
of franchise rights, approximately $74 million of trademarks and $182 million of goodwill. These amounts reflect
a preliminary allocation of the purchase price of the applicable transactions and are subject to refinement. The
franchise rights and trademarks have been assigned an indefinite life.
In January 2006, our Company acquired a 100 percent interest in TJC Holdings (Pty) Ltd. (‘‘TJC’’), a
bottling company in South Africa, from Chef Limited and Tom Cook Trust for cash consideration of
approximately $200 million. This transaction was accounted for as a business combination, with the results of
TJC included in the Company’s consolidated financial statements since the date of acquisition. TJC is included
in our Bottling Investments operating segment. The Company allocated the purchase price, based on estimated
fair values, to all of the assets and liabilities that we acquired. The amount of the purchase price allocated to
property, plant and equipment was approximately $21 million, franchise rights was approximately $169 million
and goodwill was approximately $59 million. The franchise rights have been assigned an indefinite life.
Assuming the results of these businesses had been included in operations beginning on January 1, 2006, pro
forma financial data would not be required due to immateriality.
During 2005, our Company’s acquisition and investment activity totaled approximately $637 million and
included the acquisition of the German bottling company Bremer Erfrischungsgetraenke GmbH (‘‘Bremer’’) for
approximately $160 million from InBev SA. This transaction was accounted for as a business combination, and
the results of Bremer’s operations have been included in the Company’s consolidated financial statements
beginning in September 2005. The Company recorded approximately $54 million of property, plant and
equipment, approximately $85 million of franchise rights and approximately $58 million of goodwill related to
this acquisition. The franchise rights have been assigned an indefinite life, and the goodwill was allocated to the
Germany and Nordic reporting unit within the European Union operating segment.
In August 2005, we completed the acquisition of the remaining 49 percent interest in the business of CCDA
Waters L.L.C. (‘‘CCDA’’) not previously owned by our Company. Our Company and Danone Waters of North
America, Inc. (‘‘DWNA’’) had formed CCDA in July 2002 for the production, marketing and distribution of
DWNA’s bottled spring and source water business in the United States. This transaction was accounted for as a
business combination, and the consolidated results of CCDA’s operations have been included in the Company’s
consolidated financial statements since July 2002. CCDA is included in our North America operating segment.
In July 2005, the Company acquired Sucos Mais, a Brazilian juice company. The results of Sucos Mais have been
included in our consolidated financial statements since July 2005.
Assuming the results of these businesses had been included in operations beginning on January 1, 2005, pro
forma financial data would not be required due to immateriality.
On April 20, 2005, our Company and Coca-Cola HBC jointly acquired Multon for a total purchase price of
approximately $501 million, split equally between the Company and Coca-Cola HBC. The Company’s
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