Coca Cola 2008 Annual Report Download - page 133
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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18: RESTRUCTURING COSTS (Continued)
to involuntary terminations and other direct costs associated with implementing these initiatives. Other direct
costs included expenses to relocate employees; contract termination costs; costs associated with the
development, communication and administration of these initiatives; accelerated depreciation; and asset
write-offs. The Company has incurred total pretax expenses of approximately $410 million related to these
streamlining initiatives since they commenced in 2007, which were recorded in the line item other operating
charges in our consolidated statements of income. The Company does not anticipate significant additional
charges, individually or in the aggregate, related to these initiatives.
The following table summarizes the balance of accrued streamlining expenses and the changes in the
accrued amounts for the years ended December 31, 2008 and 2007 (in millions):
Accrued Accrued
Costs Noncash Balance Costs Noncash Balance
Incurred and December 31, Incurred and December 31,
in 2007 Payments Exchange12007 in 2008 Payments Exchange12008
Severance pay and benefits $ 148 $ (72) $ 2 $ 78 $ 89 $ (143) $ (3) $ 21
Outside services—legal,
outplacement, consulting 4 (3) — 1 2 (2) — 1
Other direct costs 85 (8) (61) 16 82 (41) (49) 8
Total $ 237 $ (83) $ (59) $ 95 $ 173 $ (186) $ (52) $ 30
1Amounts primarily represent the reclassification of accelerated depreciation included in current period charges.
The total streamlining initiative costs incurred by operating segment were as follows (in millions):
Year Ended December 31, 2008 2007
Eurasia & Africa $1$36
Europe —33
Latin America 14
North America 30 23
Pacific —3
Bottling Investments 25 29
Corporate 116 109
Total $ 173 $ 237
Other Restructuring Activities
During 2008, the Company incurred approximately $21 million of charges related to other restructuring
activities outside the scope of the aforementioned streamlining initiatives, which primarily related to the
integration of the 18 German bottling and distribution operations acquired in 2007. These charges were
recorded in the line item other operating charges in our consolidated statement of income, and impacted the
Bottling Investments operating segment. This portion of the integration costs did not qualify to be accrued
during purchase accounting. Refer to Note 20.
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