Coca Cola 2007 Annual Report Download - page 126

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20: ACQUISITIONS AND INVESTMENTS (Continued)
Shanduka Beverages (Proprietary) Limited (“Shanduka”). This issuance reduced the Company’s ownership interest in
Shanduka to 30 percent. As a result of subordinated financial support provided by the Company for the BEEE to
complete this transaction, the Company concluded that we must continue to consolidate Shanduka’s operations under
Interpretation No. 46(R). Shanduka is included in our Bottling Investments operating segment.
Assuming the results of the businesses acquired in 2006 had been included in operations beginning on January 1,
2005, pro forma financial data would not be required for 2005 or 2006 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 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. Sucos Mais is included in our Latin America operating segment.
Assuming the results of our 2005 acquisitions had been included in operations beginning on January 1, 2004, pro
forma financial data would not be required due to immateriality.
On April 20, 2005, our Company and Coca-Cola Hellenic jointly acquired Multon for a total purchase price of
approximately $501 million, split equally between the Company and Coca-Cola Hellenic. The Company’s investment
in Multon is accounted for under the equity method. Equity income—net includes our proportionate share of the results
of Multon’s operations beginning April 20, 2005. Multon is included in our Eurasia operating segment.
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