Coca Cola 2011 Annual Report Download - page 32

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 operations261349346
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 for the full year in 2011. In 2010, the percentage includes net
operating revenues from the date of the CCE acquisition on October 2, 2010.
The following table sets forth the percentage of total worldwide unit case volume related to concentrate operations and finished
products operations:
Year Ended December 31, 2011 2010 2009
Concentrate operations170% 76% 78%
Finished products operations230324322
Total worldwide unit case volume 100% 100% 100%
1Includes unit case volume related to 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 unit case volume related to 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 unit case volume related to the acquired CCE North American business for the full year in 2011. In 2010, the percentage includes unit case
volume from the date of the CCE acquisition on October 2, 2010.
Acquisition of CCE’s North American Business and Related Transactions
Pursuant to the terms of the business separation and merger agreement entered into on February 25, 2010, as amended (the
‘‘merger agreement’’), on October 2, 2010 (the ‘‘acquisition date’’), we acquired CCE’s North American business, consisting of
CCE’s production, sales and distribution operations in the United States, Canada, the British Virgin Islands, the United States
Virgin Islands and the Cayman Islands, and a substantial majority of CCE’s corporate segment. We believe this acquisition will
result in an evolved franchise system that will enable us to better serve the unique needs of the North American market. The
creation of a unified operating system will strategically position us to better market and distribute our nonalcoholic beverage
brands in North America.
Under the terms of the merger agreement, the Company acquired the 67 percent of CCE’s North American business that was not
already owned by the Company for consideration that included: (1) the Company’s 33 percent indirect ownership interest in
CCE’s European operations; (2) cash consideration; and (3) replacement awards issued to certain current and former employees
of CCE’s North American and corporate operations. At closing, CCE shareowners other than the Company exchanged their CCE
common stock for common stock in a new entity, which was renamed Coca-Cola Enterprises, Inc. (which is referred to herein as
‘‘New CCE’’) and which continues to hold the European operations held by CCE prior to the acquisition. At closing, New CCE
became 100 percent owned by shareowners that held shares of common stock of CCE immediately prior to the closing, other than
the Company. As a result of this transaction, the Company does not own any interest in New CCE.
As of October 1, 2010, our Company owned 33 percent of the outstanding common stock of CCE. Based on the closing price of
CCE’s common stock on the last day of trading prior to the acquisition date, the fair value of our investment in CCE was
$5,373 million, which reflected the fair value of our ownership in both CCE’s North American business and its European
operations. We remeasured our equity interest in CCE to fair value upon the close of the transaction. As a result, we recognized a
gain of $4,978 million, which was classified in the line item other income (loss) — net in our consolidated statement of income.
The gain included a $137 million reclassification adjustment related to foreign currency translation gains recognized upon the
disposal of our indirect investment in CCE’s European operations. The Company relinquished its indirect ownership interest in
CCE’s European operations to New CCE as part of the consideration to acquire the 67 percent of CCE’s North American
business that was not already owned by the Company.
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