Coca Cola 2008 Annual Report Download - page 72

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• an increase in our trademarks with indefinite lives of $906 million, primarily related to the finalization of
purchase accounting for glac´
eau and Fuze and the acquisition of brands and licenses from Carlsberg. The
increase in trademarks with indefinite lives related to the finalization of purchase accounting for glac´
eau
resulted in a reclassification from goodwill; and
• a decrease in deferred income taxes of $1,013 million, primarily related to the change in deferred taxes on
pension and other postretirement benefit obligations and the reversal of deferred tax liabilities on our
investment in CCE as a result of our proportionate share of impairment charges recorded by CCE during
2008.
Impact of Inflation and Changing Prices
Inflation affects the way we operate in many markets around the world. In general, we believe that, over
time, we are able to increase prices to counteract the majority of the inflationary effects of increasing costs and
to generate sufficient cash flows to maintain our productive capability.
Additional Information
On September 3, 2008, we announced our intention to make cash offers to purchase Huiyuan. The making
of the offers is subject to preconditions relating to Chinese regulatory approvals. We are offering HK$12.20 per
share, and making a comparable offer for outstanding convertible bonds and options. We have accepted
irrevocable undertakings from three shareholders for acceptance of the offers, in aggregate representing
approximately 66 percent of the Huiyuan shares, and upon satisfaction of the preconditions the Company plans
to commence a tender offer under Hong Kong securities laws for the remaining shares. Assuming full
acceptance of the offers, the transaction is valued at approximately $2.4 billion.
70