Coca Cola 2007 Annual Report Download - page 120

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18: RESTRUCTURING COSTS (Continued)
The table below summarizes the balance of accrued streamlining expenses, which is included in the balance of
accounts payable and accrued expenses in the consolidated balance sheets, and the changes in the accrued amounts as
of and for the year ended December 31, 2007 (in millions):
Costs
Incurred
in 2007 Payments
Noncash
and
Exchange
Accrued
Balance
December 31,
2007
Severance pay and benefits $ 148 $ (72) $ 2 $ 78
Outside services—legal, outplacement, consulting 4 (3) — 1
Other direct costs 85 (8) (61) 16
Total $ 237 $ (83) $ (59) $ 95
The total streamlining initiative costs incurred by operating segment were as follows (in millions):
Year Ended December 31, 2007
Africa $33
Eurasia 3
European Union 33
Latin America 4
North America 23
Pacific 3
Bottling Investments 29
Corporate 109
Total $ 237
NOTE 19: SIGNIFICANT OPERATING AND NONOPERATING ITEMS
During 2007, our Company recorded restructuring charges of approximately $237 million (refer to Note 18) and
asset write-downs totaling approximately $31 million related to certain assets and investments in bottling operations,
none of which was individually significant. Of this total, approximately $14 million was recorded in cost of goods sold,
and approximately $254 million was recorded in other operating charges in our consolidated statement of income.
In 2007, the Company sold a portion of its interest in Coca-Cola Amatil for proceeds of approximately $143
million. As a result of this transaction, we recognized a pretax gain of approximately $73 million, which impacted the
Corporate operating segment and was included in other income (loss)—net in our consolidated statement of income.
Refer to Note 3.
During 2007, the Company sold substantially all of its interest in Vonpar. Total proceeds from the sale were
approximately $238 million, and we recognized a pretax gain on this sale of approximately $70 million, which
impacted the Corporate operating segment and was included in other income (loss)—net in our consolidated statement
of income. Refer to Note 3.
In 2007, the Company recorded pretax gains of approximately $66 million and $18 million resulting from the sales
of real estate in Spain and the United States, respectively. The gains were included in other income (loss)—net in the
consolidated statement of income and impacted the Corporate operating segment. Total proceeds amounted to
approximately $106 million.
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