Coca Cola 2007 Annual Report Download - page 86

THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3: BOTTLING INVESTMENTS (Continued)
approximately $198 million and realized a gain of approximately $123 million, which was recorded in the consolidated
statement of income line item other income (loss)—net and impacted the Corporate operating segment. As a result of
this public offering, our Company’s interest in Coca-Cola Icecek decreased from approximately 36 percent to
approximately 20 percent. Refer to Note 19.
Our Company owns a 50 percent interest in Multon, a Russian juice business (“Multon”), which we acquired in
April 2005 jointly with Coca-Cola Hellenic, for a total purchase price of approximately $501 million, split equally
between the Company and Coca-Cola Hellenic. Multon produces and distributes juice products under the Dobriy, Rich,
Nico and other trademarks in Russia, Ukraine and Belarus. Equity income—net includes our proportionate share of
Multon’s net income beginning April 20, 2005. Refer to Note 20.
Effective December 31, 2006, our equity method investees other than CCE, also adopted SFAS No. 158. Our
proportionate share of the impact of the adoption of SFAS No. 158 by our equity method investees other than CCE was
an approximate $18 million pretax ($12 million after tax) reduction in the carrying value of our investments in those
equity method investees and our AOCI. Refer to Note 10 and Note 16.
If valued at the December 31, 2007, quoted closing prices of shares actively traded on stock markets, the value of
our equity method investments in publicly traded bottlers other than CCE would have exceeded our carrying value by
approximately $5.8 billion.
Net Receivables and Dividends from Equity Method Investees
The total amount of net receivables due from equity method investees, including CCE, was approximately
$933 million and $857 million as of December 31, 2007 and 2006, respectively. The total amount of dividends received
from equity method investees, including CCE, was approximately $216 million, $226 million and $234 million for the
years ended December 31, 2007, 2006 and 2005, respectively.
NOTE 4: ISSUANCES OF STOCK BY EQUITY METHOD INVESTEES
In 2007 and 2006, our equity method investees did not issue any additional shares to third parties that resulted in
our Company recording any noncash pretax gains.
In 2005, our Company recorded approximately $23 million of noncash pretax gains on issuances of stock by
equity method investees. We recorded deferred taxes of approximately $8 million on these gains. These gains primarily
related to an issuance of common stock by Coca-Cola Amatil, which was valued at an amount greater than the book
value per share of our investment in Coca-Cola Amatil. Coca-Cola Amatil issued approximately 34 million shares of
common stock with a fair value of $5.78 each in connection with the acquisition of SPC Ardmona Pty. Ltd., an
Australian packaged fruit company. This issuance of common stock reduced our ownership interest in the total
outstanding shares of Coca-Cola Amatil from approximately 34 percent to approximately 32 percent.
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