Coca Cola 2010 Annual Report Download - page 151

The following table summarizes the balance of accrued expenses related to these integration initiatives and the changes
in the accrued amounts since the commencement of the plan (in millions):
Severance pay Other
and benefits Outside services1direct costs Total
2010
Costs incurred $ 45 $ 42 $ 48 $ 135
Payments (1) (33) (34) (68)
Noncash and exchange 4 — (2) 2
Accrued balance as of December 31 $ 48 $ 9 $ 12 $ 69
1Primarily relates to expenses in connection with legal, outplacement and consulting activities.
Integration of Our German Bottling and Distribution Operations
In 2008, the Company began an integration initiative related to the 18 German bottling and distribution operations
acquired in 2007. The Company incurred $94 million, $110 million and $21 million of expenses related to this initiative
in 2010, 2009 and 2008, respectively. The Company has incurred total pretax expenses of $225 million related to this
initiative since it commenced, which were recorded in the line item other operating charges and impacted the Bottling
Investments operating segment. The expenses recorded in connection with these integration activities have been
primarily due to involuntary terminations. The Company had $34 million and $46 million accrued related to these
integration costs as of December 31, 2010 and 2009, respectively.
The Company is currently reviewing other integration and restructuring opportunities within the German bottling and
distribution operations, which if implemented will result in additional charges in future periods. However, as of
December 31, 2010, the Company has not finalized any additional plans.
Restructuring Initiatives
Streamlining
During 2007, the Company took steps to streamline and simplify its operations globally. In North America, the
Company reorganized its operations around three main business units: Sparkling Beverages, Still Beverages and
Emerging Brands. In Ireland, the Company announced a plan to close its beverage concentrate manufacturing and
distribution plant in Drogheda, which was closed during the third quarter of 2008. The plant closure is expected to
improve operating productivity and enhance capacity utilization. The costs associated with this plant closure are
included in the Corporate operating segment. Selected other operations also took steps to streamline their operations to
improve overall efficiency and effectiveness.
The Company incurred total pretax expenses of $415 million related to these streamlining initiatives from the time they
commenced until the plan was completed in 2009, which included charges of $5 million and $173 million in 2009 and
2008, respectively. Expenses recognized in conjunction with this plan were recorded in the line item other operating
charges in our consolidated statements of income. The Company did not have an accrual related to this initiative as of
December 31, 2010, and our accrual was immaterial as of December 31, 2009.
Other Restructuring Initiatives
The Company incurred $59 million and $51 million of charges related to other restructuring initiatives during 2010 and
2009, respectively. These other restructuring initiatives were outside the scope of the productivity, integration and
streamlining initiatives discussed above. These other restructuring charges were related to individually insignificant
activities throughout many of our business units. None of these activities is expected to be individually significant. These
charges were recorded in the line item other operating charges. Refer to Note 19 for the impact these charges had on
our operating segments.
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