Coca Cola 2011 Annual Report Download - page 142

In 2011, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa,
$25 million for Europe, $4 million for Latin America, $374 million for North America, $4 million for Pacific, $89 million
for Bottling Investments and $164 million for Corporate, primarily due to the Company’s ongoing productivity, integration
and restructuring initiatives as well as costs associated with the merger of Arca and Contal. Refer to Note 18 for additional
information on our productivity, integration and restructuring initiatives. Refer to Note 17 for additional information
related to the merger of Arca and Contal.
• Operating income (loss) and income (loss) before income taxes were reduced by $82 million for Pacific and $2 million for
North America due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on
March 11, 2011. Refer to Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $10 million for Corporate due to charges
associated with the floods in Thailand that impacted the Company’s supply chain operations in the region. Refer to
Note 17.
• Equity income (loss) — net and income (loss) before income taxes were reduced by $53 million for Bottling Investments,
primarily attributable to the Company’s proportionate share of asset impairments and restructuring charges recorded by
certain of our equity method investees. Refer to Note 17.
• Income (loss) before income taxes was increased by a net $417 million for Corporate, primarily due to the gain the
Company recognized as a result of the merger of Arca and Contal. Refer to Note 17.
• Income (loss) before income taxes was increased by a net $122 million for Corporate, primarily due to gains the Company
recognized as a result of an equity method investee issuing additional shares of its own stock during the year at per share
amounts greater than the carrying value of the Company’s per share investment. These gains were partially offset by
charges associated with certain of the Company’s equity method investments in Japan. Refer to Note 17.
• Income (loss) before income taxes was increased by $102 million for Corporate, primarily due to the gain on the sale of
our investment in Embonor, a bottling partner with operations primarily in Chile. Prior to this transaction, the Company
accounted for our investment in Embonor under the equity method of accounting. Refer to Note 17.
• Income (loss) before income taxes was reduced by $41 million for Corporate due to the impairment of an investment in an
entity accounted for under the equity method of accounting. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $17 million for Corporate due to other-than-temporary impairments of
certain available-for-sale securities. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $9 million for Corporate due to the net charge we recognized on the
repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE’s North
American business as well as the early extinguishment of certain other long-term debt. Refer to Note 10.
• Income (loss) before income taxes was reduced by $5 million for Corporate due to the finalization of working capital
adjustments related to the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2 and
Note 17.
In 2010, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Eurasia and Africa,
$50 million for Europe, $133 million for North America, $22 million for Pacific, $122 million for Bottling Investments and
$485 million for Corporate, primarily due to the Company’s ongoing productivity, integration and restructuring initiatives;
charitable donations; transaction costs incurred in connection with our acquisition of CCE’s North American business and
the sale of our Norwegian and Swedish bottling operations to New CCE; and other charges related to bottling activities in
Eurasia. Refer to Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $74 million for North America due to the
acceleration of expense associated with certain share-based replacement awards issued in connection with our acquisition of
CCE’s North American business. Refer to Note 12.
• Equity income (loss) — net and income (loss) before income taxes were reduced by $66 million for Bottling Investments.
This net charge was primarily attributable to the Company’s proportionate share of unusual tax charges, asset impairments,
restructuring charges and transaction costs recorded by equity method investees, which were partially offset by our
proportionate share of a foreign currency remeasurement gain recorded by an equity method investee. The components of
the net charge were individually insignificant. Refer to Note 17.
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