Coca Cola 2006 Annual Report Download - page 125

THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20: OPERATING SEGMENTS (Continued)
2Operating income (loss) and income (loss) before income taxes were reduced by approximately $3 million for Africa, $44 million for East, South Asia
and Pacific Rim, $36 million for the European Union, $17 million for North Asia, Eurasia and Middle East, $88 million for Bottling Investments and
$1 million for Corporate primarily due to asset impairments, contract termination costs related to production capacity efficiencies and other
restructuring costs during 2006. Refer to Note 18.
3Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a donation made to The
Coca-Cola Foundation. Refer to Note 18.
4Income (loss) before income taxes was increased by approximately $298 million for Corporate as a result of net gains on the sale of Coca-Cola FEMSA
shares and the sale of a portion of our investment in Coca-Cola Icecek in an initial public offering. Refer to Note 18.
5Principally cash and cash equivalents, marketable securities, finance subsidiary receivables, goodwill, trademarks and other intangible assets and
property, plant and equipment—net.
6Equity income—net and income (loss) before income taxes were reduced by approximately $587 million for Bottling Investments primarily related to
our proportionate share of impairment and restructuring charges recorded by CCE which were partially offset by our proportionate share of changes in
certain of CCE’s state and Canadian federal and provincial tax rates (refer to Note 3) and by $19 million due to our proportionate share of restructuring
charges recorded by other equity method investees.
7Property, plant and equipment—net in Germany represented approximately 19 percent of total property, plant and equipment—net in 2006, 19 percent
in 2005 and 20 percent in 2004.
8Principally equity and cost method investments in bottling companies.
9Operating income (loss) and income (loss) before income taxes were reduced by approximately $3 million for Africa, $3 million for East, South Asia and
Pacific Rim, $3 million for the European Union, $4 million for Latin America, $12 million for North America, $3 million for North Asia, Eurasia and
Middle East, and $22 million for Corporate as a result of accelerated amortization of stock-based compensation expense due to a change in our
estimated service period for retirement-eligible participants. Refer to Note 15.
10 Operating income (loss) and income (loss) before income taxes were reduced by approximately $85 million for East, South Asia and Pacific Rim related
to the Philippines impairment charges. Refer to Note 18.
11 Operating income (loss) and income (loss) before income taxes benefited by approximately $47 million for Corporate related to the settlement of a class
action lawsuit related to HFCS purchases. Refer to Note 18.
12 Equity income—net and income (loss) before income taxes were reduced by approximately $33 million for Bottling Investments primarily related to our
proportionate share of the tax liability recorded as a result of CCE’s repatriation of unremitted foreign earnings under the Jobs Creation Act and
restructuring charges, offset by CCE’s HFCS lawsuit settlement proceeds and changes in certain of CCE’s state and provincial tax rates and by $4 million
due to our proportionate share of impairments of certain intangible assets and investments recorded by an equity method investee in the Philippines.
Refer to Note 18.
13 Income (loss) before income taxes benefited by approximately $23 million for Corporate due to noncash pretax gains on issuances of stock by Coca-Cola
Amatil in connection with the acquisition of SPC Ardmona Pty. Ltd., an Australian fruit company. Refer to Note 4.
14 Operating income (loss) and income (loss) before income taxes were reduced by approximately $18 million for North America, $398 million for Bottling
Investments and $64 million for Corporate as a result of other operating charges recorded for asset impairments. Refer to Note 18.
15 Operating income (loss) and income (loss) before income taxes for Corporate were impacted as a result of the Company’s receipt of a $75 million
insurance settlement related to the class action lawsuit settled in 2000. The Company subsequently donated $75 million to The Coca-Cola Foundation.
16 Equity income—net and income (loss) before income taxes were increased by approximately $37 million for Bottling Investments as a result of a
favorable tax settlement related to Coca-Cola FEMSA. Refer to Note 3.
17 Income (loss) before income taxes was increased by approximately $24 million for Corporate due to noncash pretax gains that were recognized on the
issuances of stock by CCE. Refer to Note 4.
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