Coca Cola 2010 Annual Report Download - page 86

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deconsolidation of certain entities as a result of our adoption of new accounting guidance issued by the FASB
and the disposal of our Norwegian and Swedish bottling operations. Refer to Note 1 and Note 2 of Notes to
Consolidated Financial Statements.
• Other intangible assets increased $909 million, primarily due to $605 million of definite-lived franchise rights and
$380 million of customer rights we acquired in connection with our acquisition of CCE’s North American
business. Refer to Note 2 of Notes to Consolidated Financial Statements.
• Accounts payable and accrued expenses increased $2,202 million, primarily due to the $1,826 million of accounts
payable and accrued expenses assumed in connection with our acquisition of CCE’s North American business.
Refer to Note 2 of Notes to Consolidated Financial Statements. The increase also reflects additional accrued
liabilities related to our stock repurchase program for shares purchased but not settled as of December 31, 2010.
• Loans and notes payable increased $1,351 million, primarily related to an increase in short-term borrowings to
fund the cash payment made in connection with our acquisition of CCE’s North American business. Refer to
Note 2 of Notes to Consolidated Financial Statements.
• Current maturities of long-term debt increased $1,225 million, primarily related to an increase in our overall debt
balance as a result of our acquisition of CCE’s North American business. Refer to Note 10 of Notes to
Consolidated Financial Statements.
• Long-term debt increased $8,982 million, primarily due to long-term debt assumed in connection with our
acquisition of CCE’s North American business. Refer to the heading ‘‘Cash Flows from Financing Activities,’’
above, and Note 10 of Notes to Consolidated Financial Statements.
• Other liabilities increased $1,829 million, primarily due to pension and other postretirement liabilities assumed in
connection with our acquisition of CCE’s North American business. The assumed liabilities consisted of benefit
obligations of $3,544 million and plan assets of $2,231 million as of the acquisition date. Refer to Note 13 of
Notes to Consolidated Financial Statements for additional information related to pension and other
postretirement plans assumed from CCE.
• Deferred income taxes increased $2,681 million, primarily due to deferred tax liabilities recorded on the
franchise rights acquired in connection with our acquisition of CCE’s North American business. Refer to Note 2
of Notes to Consolidated Financial Statements.
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.
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