Coca Cola 2007 Annual Report Download - page 129

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21: OPERATING SEGMENTS (Continued)
5Property, plant and equipment—net in Germany represented approximately 21 percent of total consolidated property, plant and equipment—net
in 2007, 19 percent in 2006 and 19 percent in 2005.
6Principally equity and cost method investments in bottling companies.
7Operating income (loss) and income (loss) before income taxes were reduced by approximately $3 million for Africa, $36 million for the
European Union, $62 million for the Pacific, $87 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. Refer to Note 19.
8Operating 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 19.
9Equity 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 Note 19), and were reduced by
approximately $19 million due to our proportionate share of restructuring charges recorded by other equity method investees.
10 Income (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 19.
11 Operating income (loss) and income (loss) before income taxes were reduced by approximately $3 million for Africa, $3 million for Eurasia,
$3 million for the European Union, $4 million for Latin America, $12 million for North America, $3 million for the Pacific, 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.
12 Operating income (loss) and income (loss) before income taxes were reduced by approximately $85 million for the Pacific related to the
Philippines impairment charges. Refer to Note 19.
13 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 19.
14 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 approximately $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 3 and Note 19.
15 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.
Geographic Data (in millions)
Year Ended December 31, 2007 2006 2005
Net operating revenues:
United States $ 7,556 $ 6,662 $ 6,299
International 21,301 17,426 16,805
Net operating revenues $ 28,857 $ 24,088 $ 23,104
December 31, 2007 2006 2005
Property, plant and equipment—net:
United States $ 2,750 $ 2,607 $ 2,309
International 5,743 4,296 3,522
Property, plant and equipment—net $ 8,493 $ 6,903 $ 5,831
NOTE 22: SUBSEQUENT EVENT
On February 5, 2008, the Company and Honest Tea, Inc. completed an agreement resulting in the Company
holding an approximate 40 percent interest in Honest Tea, Inc., the maker of organic beverages, including beverages
sold under the Honest Tea trademark. The Company also may elect to buy, and the remaining Honest Tea, Inc.
shareholders may elect to sell to the Company, the outstanding interest not currently owned by the Company.
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