Coca Cola 2010 Annual Report Download - page 125

have continued to pursue and obtain coverage agreements for the asbestos-related claims against Aqua-Chem with
those insurance companies that did not settle in the Wisconsin coverage litigation. The court’s judgment concluded the
Wisconsin insurance coverage litigation. The Georgia litigation remains subject to the stay agreement.
Indemnifications
At the time we acquire or divest our interest in an entity, we sometimes agree to indemnify the seller or buyer for
specific contingent liabilities. Management believes that any liability to the Company that may arise as a result of any
such indemnification agreements will not have a material adverse effect on the financial condition of the Company
taken as a whole.
Tax Audits
The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. These audits
may result in the assessment of additional taxes that are subsequently resolved with authorities or potentially through
the courts. Refer to Note 14.
Risk Management Programs
The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In
general, we are self-insured for large portions of many different types of claims; however, we do use commercial
insurance above our self-insured retentions to reduce the Company’s risk of catastrophic loss. Our reserves for the
Company’s self-insured losses are estimated through actuarial procedures of the insurance industry and by using
industry assumptions, adjusted for our specific expectations based on our claim history. As of December 31, 2010, our
self-insurance reserves totaled approximately $502 million. Our self-insurance reserves were not significant as of
December 31, 2009. The increase in our self-insurance reserves was primarily due to the acquisition of CCE’s North
American business. Refer to Note 2.
Workforce (Unaudited)
We refer to our employees as ‘‘associates.’’ As of December 31, 2010 and 2009, our Company had approximately
139,600 and 92,800 associates, respectively, of which approximately 70,400 and 11,700 associates, respectively, were
located in the United States, including Puerto Rico. Our Company, through its divisions and subsidiaries, has entered
into numerous collective bargaining agreements. As of December 31, 2010, approximately 18,600 associates in North
America were covered by collective bargaining agreements. These agreements usually have terms of three to five years.
We currently expect that we will be able to renegotiate such agreements on satisfactory terms when they expire. The
Company believes that its relations with its associates are generally satisfactory.
Operating Leases
The following table summarizes our minimum lease payments under noncancelable operating leases with initial or
remaining lease terms in excess of one year as of December 31, 2010 (in millions):
Operating
Years ending December 31, Lease Payments
2011 $ 205
2012 185
2013 143
2014 101
2015 78
Thereafter 253
Total minimum operating lease payments1$ 965
1Income associated with sublease arrangements is not significant.
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