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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3: BOTTLING INVESTMENTS (Continued)
our proportionate share of the results of Jugos del Valle’s operations beginning November 2007 and is included in the
Latin America operating segment. Refer to Note 20.
During 2007, the Company acquired a 34 percent interest in Tokyo Coca-Cola Bottling Company (“Tokyo
CCBC”). The Company’s investment in Tokyo CCBC is accounted for under the equity method. Equity income—net
includes our proportionate share of the results of Tokyo CCBC’s operations beginning July 2007 and is included in the
Bottling Investments operating segment. In the third quarter of 2007, the Company also acquired an additional interest
in Nordeste Refrigerantes S.A. (“NORSA”). After this acquisition, the Company owned approximately 60 percent of
NORSA. The Company began consolidating this entity from the date we acquired the additional 11 percent interest.
The combined purchase price for these third quarter acquisitions was approximately $203 million. NORSA is included
in the Bottling Investments operating segment. Refer to Note 20.
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 gain of approximately $73 million, which impacted the
Corporate segment and was included in other income (loss)—net in our consolidated statement of income. Our
ownership interest in the total outstanding shares of Coca-Cola Amatil was reduced from approximately 32 percent to
30 percent. Refer to Note 19.
During 2007, the Company sold substantially all of its interest in Vonpar Refrescos S.A. (“Vonpar”), a bottler
headquartered in Brazil. Total proceeds from the sale were approximately $238 million, and we recognized a gain on
this sale of approximately $70 million, which impacted the Corporate segment and is included in other income (loss)—
net in our consolidated statements of income. Prior to this sale, our Company owned approximately 49 percent of
Vonpar’s outstanding common stock and accounted for the investment using the equity method. Refer to Note 19.
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 19.
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 Coca-Cola Bottlers Philippines, Inc. (“CCBPI”).
The asset write-downs primarily related to excess and obsolete bottles and cases at CCBPI. Refer to Note 19.
In 2003, one of our Company’s equity method investees, Coca-Cola FEMSA, consummated a merger with another of
the Company’s equity method investees, Panamerican Beverages, Inc. At the time of the merger, the Company and Fomento
Economico Mexicano, S.A.B. de C.V. (“FEMSA”), the major shareowner of Coca-Cola FEMSA, reached an understanding
under which this shareowner could purchase from our Company an amount of Coca-Cola FEMSA shares sufficient for this
shareowner to regain majority ownership interest in Coca-Cola FEMSA. That understanding expired in May 2006; however,
in the third quarter of 2006, the Company and the shareowner reached an agreement under which the Company would sell a
number of shares representing 8 percent of the capital stock of Coca-Cola FEMSA to FEMSA. As a result of this sale, which
occurred in the fourth quarter of 2006, the Company received cash proceeds of approximately $427 million and realized a
gain of approximately $175 million, which was recorded in the consolidated statement of income line item other income
(loss)—net and impacted the Corporate operating segment. Also as a result of this sale, our ownership interest in Coca-Cola
FEMSA was reduced from approximately 40 percent to approximately 32 percent. Refer to Note 19.
In 2006, our Company sold a portion of our investment in Coca-Cola Icecek A.S. (“Coca-Cola Icecek”), an equity
method investee bottler incorporated in Turkey, in an initial public offering. Our Company received cash proceeds of
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