Coca Cola 2007 Annual Report Download - page 81
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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3: BOTTLING INVESTMENTS
Coca-Cola Enterprises Inc.
CCE is a marketer, producer and distributor of bottle and can nonalcoholic beverages, operating in eight countries.
As of December 31, 2007, our Company owned approximately 35 percent of the outstanding common stock of CCE.
We account for our investment by the equity method of accounting and, therefore, our net income includes our
proportionate share of income resulting from our investment in CCE. As of December 31, 2007, our proportionate
share of the net assets of CCE exceeded our investment by approximately $337 million. This difference is not
amortized.
A summary of financial information for CCE is as follows (in millions):
Year Ended December 31, 2007 2006 2005
Net operating revenues $ 20,936 $ 19,804 $ 18,743
Cost of goods sold 12,955 12,067 11,258
Gross profit $ 7,981 $ 7,737 $ 7,485
Operating income (loss) $ 1,470 $ (1,495) $ 1,431
Net income (loss) $ 711 $ (1,143) $ 514
December 31, 2007 2006
Current assets $ 4,092 $ 3,802
Noncurrent assets 19,954 19,564
Total assets $ 24,046 $ 23,366
Current liabilities $ 5,343 $ 3,924
Noncurrent liabilities 13,014 14,916
Total liabilities $ 18,357 $ 18,840
Shareowners’ equity $ 5,689 $ 4,526
Company equity investment $ 1,637 $ 1,312
A summary of our significant transactions with CCE is as follows (in millions):
Year Ended December 31, 2007 2006 2005
Concentrate, syrup and finished product sales to CCE $ 5,948 $ 5,378 $ 5,125
Syrup and finished product purchases from CCE 410 415 428
CCE purchases of sweeteners through our Company 326 274 275
Marketing payments made by us directly to CCE 636 514 482
Marketing payments made to third parties on behalf of CCE 123 113 136
Local media and marketing program reimbursements from CCE 299 279 245
Payments made to CCE for dispensing equipment repair services 78 74 70
Other payments—net 102 99 81
Syrup and finished product purchases from CCE represent purchases of fountain syrup in certain territories that
have been resold by our Company to major customers and purchases of bottle and can products. Marketing payments
made by us directly to CCE represent support of certain marketing activities and our participation with CCE in
cooperative advertising and other marketing activities to promote the sale of Company trademark products within CCE
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