Coca Cola 2006 Annual Report Download - page 53

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Other Operating Charges
The other operating charges incurred by operating segment were as follows (in millions):
Year Ended December 31, 2006 2005 2004
Africa $3 $— $ —
East, South Asia and Pacific Rim 44 85 —
European Union 36 ——
Latin America ———
North America ——18
North Asia, Eurasia and Middle East 17 ——
Bottling Investments 84 — 398
Corporate 1—64
Total $ 185 $ 85 $ 480
During 2006, our Company recorded other operating charges of $185 million. Of these charges,
approximately $108 million were primarily related to the impairment of assets and investments in our bottling
operations, approximately $53 million were for contract termination costs related to production capacity
efficiencies and approximately $24 million were related to other restructuring costs. None of these charges was
individually significant. The impairment charges were primarily the result of a revised outlook for certain assets
and bottling operations in Asia, which have been impacted by unfavorable market conditions and declines in
volume. Refer to the discussion under ‘‘Critical Accounting Policies and Estimates—Goodwill, Trademarks and
Other Intangible Assets,’’ above.
Other operating charges in 2005 reflected the impact of approximately $84 million of expenses related to
impairment charges for intangible assets and approximately $1 million related to impairments of other assets.
These intangible assets primarily relate to trademark beverages sold in the Philippines, which is part of East,
South Asia and Pacific Rim. Refer to the heading ‘‘Critical Accounting Policies and Estimates—Goodwill,
Trademarks and Other Intangible Assets.’’
Other operating charges in 2004 reflected the impact of approximately $480 million of expenses primarily
related to impairment charges for franchise rights and certain manufacturing assets. Bottling Investments
accounted for approximately $398 million of the impairment charges, which were primarily related to the
impairment of franchise rights at CCEAG. For a discussion of the operating environment in Germany, refer to
the heading ‘‘Critical Accounting Policies and Estimates—Goodwill, Trademarks and Other Intangible Assets.’’
Corporate accounted for approximately $64 million of impairment charges, which were primarily related to the
impairment of certain manufacturing assets.
51