Coca Cola 2011 Annual Report Download - page 56

Price, product and geographic mix had a favorable 1 percent impact on consolidated net operating revenues. Price, product and
geographic mix for our operating segments was impacted by a variety of factors and events including, but not limited to, the
following:
• Consolidated results were unfavorably impacted by geographic mix as a result of growth in our emerging and developing
markets. The growth in our emerging and developing markets resulted in unfavorable geographic mix due to the fact that
the revenue per unit sold in these markets is generally less than in developed markets;
• Eurasia and Africa was unfavorably impacted by negative geographic mix due to the growth in emerging and developing
markets such as India and Russia. The revenue per unit sold in these markets is generally less than in developed markets;
• Latin America was favorably impacted by pricing in a number of our key markets and the impact of still beverages growing
faster than sparkling beverages; and
• Pacific was negatively impacted by unfavorable geographic mix due to the growth in emerging and developing markets such
as China and the Philippines. The revenue per unit sold in these markets is generally less than in developed markets.
The favorable impact of foreign currency fluctuations increased net operating revenues by 2 percent. The favorable impact of
changes in foreign currency exchange rates was primarily due to a weaker U.S. dollar compared to certain other foreign
currencies, including the Japanese yen, Mexican peso, Brazilian real, South African rand and Australian dollar, which had a
favorable impact on the Eurasia and Africa, Latin America, Pacific and Bottling Investments operating segments. The favorable
impact of a weaker U.S. dollar compared to the aforementioned currencies was partially offset by the impact of a stronger U.S.
dollar compared to certain other foreign currencies, including the euro and British pound, which had an unfavorable impact on
the Europe and Bottling Investments operating segments. Refer to the heading ‘‘Liquidity, Capital Resources and Financial
Position — Foreign Exchange.’’
Net Operating Revenues by Operating Segment
Information about our net operating revenues by operating segment as a percentage of Company net operating revenues is
as follows:
Year Ended December 31, 2011 2010 2009
Eurasia & Africa 5.8% 6.9% 6.4%
Europe 10.3 12.6 13.9
Latin America 9.4 11.0 12.0
North America 44.2 31.7 26.4
Pacific 11.7 14.1 14.6
Bottling Investments 18.3 23.4 26.4
Corporate 0.3 0.3 0.3
100.0% 100.0% 100.0%
Net operating revenue growth rates are impacted by sales volume, structural changes, price and product/geographic mix, and
foreign currency fluctuations. The percentage of the Company’s net operating revenues contributed by our North America
operating segment increased 12.5 percent and 5.3 percent in 2011 and 2010, respectively, as a result of our acquisition of CCE’s
North American business on October 2, 2010. The CCE acquisition resulted in a decrease in the proportionate share of the
Company’s consolidated net operating revenues contributed by our operating segments outside of North America for both 2011
and 2010. The percentage of the Company’s net operating revenues contributed by our Bottling Investments operating segment
decreased 5.1 percent and 3.0 percent in 2011 and 2010, respectively, primarily due to the sale of our Norwegian and Swedish
bottling operations to New CCE and the segment’s proportionate decrease in the Company’s consolidated net operating revenues
due to the CCE acquisition in North America. Refer to the heading ‘‘Structural Changes, Acquired Brands and New License
Agreements’’ above.
The size and timing of structural changes are not consistent from period to period. As a result, anticipating the impact of such
events on future net operating revenues, and other financial statement line items, usually is not possible. We expect structural
changes to have an impact on our consolidated financial statements in future periods.
54