Coca Cola 2010 Annual Report Download - page 156

REPORT OF MANAGEMENT
Management’s Responsibility for the Financial Statements
Management of the Company is responsible for the preparation and integrity of the consolidated financial statements
appearing in our annual report on Form 10-K. The financial statements were prepared in conformity with generally
accepted accounting principles appropriate in the circumstances and, accordingly, include certain amounts based on our
best judgments and estimates. Financial information in this annual report on Form 10-K is consistent with that in the
financial statements.
Management of the Company is responsible for establishing and maintaining a system of internal controls and
procedures to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the
consolidated financial statements. Our internal control system is supported by a program of internal audits and
appropriate reviews by management, written policies and guidelines, careful selection and training of qualified personnel
and a written Code of Business Conduct adopted by our Company’s Board of Directors, applicable to all officers and
employees of our Company and subsidiaries. In addition, our Company’s Board of Directors adopted a written Code of
Business Conduct for Non-Employee Directors which reflects the same principles and values as our Code of Business
Conduct for officers and employees but focuses on matters of relevance to non-employee Directors.
Because of its inherent limitations, internal controls may not prevent or detect misstatements and, even when
determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and
presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Management’s Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934 (‘‘Exchange Act’’).
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,
2010. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO) in Internal Control — Integrated Framework. During 2010, the Company acquired
the North American operations of Coca-Cola Enterprises Inc. (subsequently renamed Coca-Cola Refreshments
USA, Inc.). Refer to Note 2 of Notes to Consolidated Financial Statements for additional information regarding this
event. Management has excluded this business from its evaluation of the effectiveness of the Company’s internal control
over financial reporting as of December 31, 2010. The net operating revenues attributable to this business represented
approximately 10 percent of the Company’s consolidated net operating revenues for the year ended December 31, 2010
and its aggregate total assets represented approximately 31 percent of the Company’s consolidated total assets as of
December 31, 2010. Based on this assessment, management believes that the Company maintained effective internal
control over financial reporting as of December 31, 2010.
The Company’s independent auditors, Ernst & Young LLP, a registered public accounting firm, are appointed by the
Audit Committee of the Company’s Board of Directors, subject to ratification by our Company’s shareowners. Ernst &
Young LLP has audited and reported on the consolidated financial statements of The Coca-Cola Company and
subsidiaries and the Company’s internal control over financial reporting. The reports of the independent auditors are
contained in this annual report.
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