Coca Cola 2008 Annual Report Download - page 64

Additionally, the Company made approximately $224 million in payments related to streamlining activities and
the costs of productivity initiatives during 2008. Refer to Note 18 of Notes to Consolidated Financial Statements.
On May 26, 2008, the Company and the other defendants reached an agreement with the plaintiffs in a class
action lawsuit (Carpenters Health & Welfare Fund of Philadelphia & Vicinity v. The Coca-Cola Company, et al.) to
settle the lawsuit for approximately $138 million, without admitting any wrongdoing. The settlement amount was
covered by insurance and, therefore, the settlement had no impact on our consolidated statement of income.
The payments related to this settlement were made directly from the insurers to the plaintiffs during the third
quarter and fourth quarter of 2008. As a result, the settlement had no impact on our consolidated statement of
cash flows.
Cash flows from operating activities increased $1,193 million, or 20 percent, in 2007 compared to 2006. This
increase was primarily related to increased cash receipts from customers in 2007, which was driven by a
20 percent rise in net operating revenues. These higher cash collections were offset in part by increased
payments to suppliers and vendors in 2007, primarily related to the increased cost of goods sold to support the
higher sales volumes, and secondarily related to higher cash payments for selling, general and administrative
related costs. Cash flows from operating activities in 2007 were also reduced due to an increase in interest
payments of $193 million and an increase in cash payments for streamlining initiatives of $83 million. Cash flows
from operating activities in 2006 included the impact of increased tax payments made related to repatriation of
foreign earnings under The American Jobs Creation Act of 2004, a contribution of approximately $216 million
to a U.S. Voluntary Employee Beneficiary Association (‘‘VEBA’’), a tax-qualified trust to fund retiree medical
benefits and a $100 million donation made to The Coca-Cola Foundation. Refer to Note 16 and Note 19 of
Notes to Consolidated Financial Statements for additional information on the contribution to a VEBA.
Cash Flows from Investing Activities
Our cash flows used in investing activities are summarized as follows (in millions):
Year Ended December 31, 2008 2007 2006
Cash flows (used in) provided by investing activities:
Acquisitions and investments, principally beverage and
bottling companies and trademarks $ (759) $ (5,653) $ (901)
Purchases of other investments (240) (99) (82)
Proceeds from disposals of bottling companies and other
investments 479 448 640
Purchases of property, plant and equipment (1,968) (1,648) (1,407)
Proceeds from disposals of property, plant and equipment 129 239 112
Other investing activities (4) (6) (62)
Net cash used in investing activities $ (2,363) $ (6,719) $ (1,700)
Cash used in investing activities included acquisitions and investments of approximately $759 million in
2008, $5,653 million in 2007 and $901 million in 2006.
In 2008, the Company’s acquisition and investment activities included the acquisition of brands and licenses
in Denmark and Finland from Carlsberg for approximately $225 million. None of the other acquisitions during
2008 was individually significant. Refer to Note 20 of Notes to Consolidated Financial Statements.
Investing activities during 2008 also included proceeds of approximately $275 million, net of the cash
balance as of the disposal date, related to the sale of Remil to Coca-Cola FEMSA. Refer to Note 3 and Note 19
of Notes to Consolidated Financial Statements.
In 2007, our Company acquired glac´ eau, 18 German bottling and distribution operations, Fuze
Beverage, LLC (‘‘Fuze’’) and Leao Junior. Our Company also completed the acquisition of the remaining
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