Coca Cola 2007 Annual Report Download - page 121

THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19: SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Continued)
Equity income in 2007 was reduced by approximately $99 million in the Bottling Investments operating segment
related to our proportionate share of asset write-downs recorded by CCBPI. The asset write-downs primarily related to
excess and obsolete bottles and cases at CCBPI. Refer to Note 3.
In 2007, our equity income was also reduced by approximately $62 million in the Bottling Investments operating
segment related to our proportionate share of an impairment recorded by Coca-Cola Amatil as a result of the sale of its
bottling operations in South Korea. Refer to Note 3.
Equity income was increased in 2007 by approximately $11 million in the Bottling Investments operating
segment, primarily consisting of our proportionate share of tax benefits recorded by CCE, partially offset by our
proportionate share of restructuring charges recorded by CCE. Refer to Note 3.
In 2006, our Company recorded charges of approximately $606 million related to our proportionate share of
charges recorded by our equity method investees. Of this amount, approximately $602 million related to our
proportionate share of an impairment charge recorded by CCE for its North American franchise rights. Our
proportionate share of CCE’s charges also included approximately $18 million due to restructuring charges recorded by
CCE. These charges were partially offset by approximately $33 million related to our proportionate share of changes in
certain of CCE’s state and Canadian federal and provincial tax rates. The charges were recorded in the line item equity
income—net in the consolidated statement of income. All of these charges and changes impacted our Bottling
Investments operating segment. Refer to Note 3.
During 2006, our Company also recorded charges of approximately $112 million, primarily related to the
impairment of assets and investments in our bottling operations, approximately $53 million for contract termination
costs related to production capacity efficiencies and approximately $24 million related to other restructuring costs.
These charges impacted the Africa, the European Union, the Pacific, the Bottling Investments and the Corporate
operating segments. None of these charges was individually significant. Approximately $4 million of these charges was
recorded in the line item cost of goods sold and approximately $185 million of these charges was recorded in the line
item other operating charges in the consolidated statement of income. Refer to Note 21.
The Company made a $100 million donation to The Coca-Cola Foundation in 2006, which resulted in a charge to
the consolidated statement of income line item selling, general and administrative expenses and impacted the Corporate
operating segment.
In 2006, the Company sold a portion of its Coca-Cola FEMSA shares to FEMSA and recorded a pretax gain of
approximately $175 million in the consolidated statement of income line item other income (loss)—net, which
impacted the Corporate operating segment. Refer to Note 3.
The Company sold a portion of our investment in Coca-Cola Icecek in an initial public offering in 2006. Our
Company received net cash proceeds of approximately $198 million and realized a pretax gain of approximately
$123 million, which was recorded as other income (loss)—net in the consolidated statement of income and impacted
the Corporate operating segment. Refer to Note 3.
In 2005, our Company received approximately $109 million related to the settlement of a class action lawsuit
concerning price-fixing in the sale of HFCS purchased by the Company during the years 1991 to 1995. Subsequent to
the receipt of this settlement amount, the Company distributed approximately $62 million to certain bottlers in North
America. From 1991 to 1995, the Company purchased HFCS on behalf of these bottlers. Therefore, these bottlers were
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