Coca Cola 2010 Annual Report Download - page 107

The preliminary allocation of the purchase price presented above is subject to refinement when appraisals are finalized.
As of December 31, 2010, the appraisals that have not been finalized primarily relate to intangible assets and certain
fixed assets. The final purchase price allocation will be completed as soon as possible, but no later than the end of the
third quarter of 2011.
In a concurrent transaction, we agreed to sell all of our ownership interests in Coca-Cola Drikker AS (the ‘‘Norwegian
bottling operation’’) and Coca-Cola Drycker Sverige AB (the ‘‘Swedish bottling operation’’) to New CCE at fair value.
The divestiture of our Norwegian and Swedish bottling operations also closed on October 2, 2010. See further
discussion of this divestiture below. In addition, we granted New CCE the right to acquire our majority interest in our
German bottling operation, Coca-Cola Erfrischungsgetraenke AG (‘‘CCEAG’’), 18 to 39 months after the date of the
merger agreement, at the then current fair value and subject to terms and conditions as mutually agreed.
In 2010, the Company incurred $81 million of transaction costs in connection with our acquisition of CCE’s North
American business and the sale of our ownership interests in our Norwegian and Swedish bottling operations to New
CCE. These costs were included in the line item other operating charges in our consolidated statement of income.
Refer to Note 17 for additional information. In addition, the Company recognized $265 million of charges related to
preexisting relationships. These charges were also included in the line item other income (loss) — net in our
consolidated statement of income. Refer to Note 6 for additional information.
The CCE North American business contributed net revenues of approximately $3,637 million and net losses of
approximately $122 million from October 2, 2010 through December 31, 2010. The following table presents unaudited
consolidated pro forma information as if our acquisition of CCE’s North American business and the divestiture of our
Norwegian and Swedish bottling operations had occurred on January 1, 2009 (in millions):
Unaudited
Year Ended December 31, 2010 2009
Net operating revenues1$ 43,106 $ 41,635
Net income attributable to shareowners of The Coca-Cola Company26,839 11,7673
1The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net operating revenues of
approximately $433 million and $542 million in 2010 and 2009, respectively.
2The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net income attributable to
shareowners of The Coca-Cola Company of approximately $387 million in 2010 and an increase of $294 million in 2009.
3Includes the gain related to the remeasurement of our equity interest in CCE to fair value upon the close of the transaction, the
gain on the sale of our Norwegian and Swedish bottling operations, transaction costs and charges related to preexisting
relationships. The 2010 pro forma information has been adjusted to exclude the impact of these items in order to present the pro
forma information as if the transactions had occurred on January 1, 2009.
The unaudited pro forma financial information presented above does not purport to represent what the actual results of
our operations would have been if our acquisition of CCE’s North American business and the divestiture of our
Norwegian and Swedish bottling operations had occurred on January 1, 2009, nor is it indicative of the future operating
results of The Coca-Cola Company. The unaudited pro forma financial information does not reflect the impact of
future events that may occur after the acquisition, including, but not limited to, anticipated cost savings from operating
synergies.
The unaudited pro forma financial information presented in the table above has been adjusted to give effect to
adjustments that are (1) directly related to the business combination; (2) factually supportable; and (3) expected to have
a continuing impact. These adjustments include, but are not limited to, the application of our accounting policies;
elimination of related party transactions and equity income; and depreciation and amortization related to fair value
adjustments to property, plant and equipment and intangible assets.
Dr Pepper Snapple Group, Inc. Agreements
In contemplation of the closing of our acquisition of CCE’s North American business, we reached an agreement with
DPS to distribute certain DPS brands in territories where DPS brands had been distributed by CCE prior to the CCE
transaction. Under the terms of our agreement with DPS, and concurrently with the closing of the CCE transaction, we
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