Coca Cola 2011 Annual Report Download - page 140

NOTE 19: OPERATING SEGMENTS
As of December 31, 2011, our organizational structure consisted of the following operating segments: Eurasia and Africa; Europe;
Latin America; North America; Pacific; Bottling Investments; and Corporate.
Segment Products and Services
The business of our Company is nonalcoholic beverages. Our geographic operating segments (Eurasia and Africa; Europe; Latin
America; North America; and Pacific) derive a majority of their revenues from the manufacture and sale of beverage concentrates
and syrups and, in some cases, the sale of finished beverages. Our Bottling Investments operating segment is comprised of our
Company-owned or consolidated bottling operations, regardless of the geographic location of the bottler, except for bottling
operations managed by CCR, which are included in our North America operating segment, and equity income from the majority
of our equity method investments. Company-owned or consolidated bottling operations derive the majority of their revenues from
the sale of finished beverages. Subsequent to our acquisition of CCE’s North American business on October 2, 2010, our North
America operating segment began to derive the majority of its net operating revenues from the sale of finished beverages. Refer
to Note 2. Generally, bottling and finished products operations produce higher net revenues but lower gross profit margins
compared to concentrate and syrup operations.
The following table sets forth the percentage of total net operating revenues related to concentrate operations and finished
products operations:
Year Ended December 31, 2011 2010 2009
Concentrate operations139% 51% 54%
Finished products operations2,3 61 49 46
Net operating revenues 100% 100% 100%
1Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell
the fountain syrups to wholesalers or directly to fountain retailers.
2Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized
fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
3Includes net operating revenues related to the acquired CCE North American business from October 2, 2010.
Method of Determining Segment Income or Loss
Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting
financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and
expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss
before income taxes.
Geographic Data
The following table provides information related to our net operating revenues (in millions):
Year Ended December 31, 2011 2010 2009
United States $ 18,699 $ 10,629 $ 8,011
International 27,843 24,490 22,979
Net operating revenues $ 46,542 $ 35,119 $ 30,990
The following table provides information related to our property, plant and equipment — net (in millions):
Year Ended December 31, 2011 2010 2009
United States $ 8,043 $ 8,251 $ 3,115
International 6,896 6,476 6,446
Property, plant and equipment — net $ 14,939 $ 14,727 $ 9,561
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