Coca Cola 2011 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2011 Coca Cola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

The following table presents the final allocation of the purchase price by major class of assets and liabilities (in millions) as of the
acquisition date, as well as adjustments made during 2011 (referred to as ‘‘measurement period adjustments’’):
Amounts
Amounts Measurement Recognized as of
Recognized as of Period Acquisition Date
Acquisition Date1Adjustments2(as Adjusted)
Cash and cash equivalents $ 49 $ — $ 49
Marketable securities 7— 7
Trade accounts receivable31,194 — 1,194
Inventories 696 — 696
Other current assets4744 (5) 739
Property, plant and equipment45,385 (682) 4,703
Bottlers’ franchise rights with indefinite lives4,5 5,100 100 5,200
Other intangible assets4,6 1,032 45 1,077
Other noncurrent assets 261 — 261
Total identifiable assets acquired $ 14,468 $ (542) $ 13,926
Accounts payable and accrued expenses41,826 8 1,834
Loans and notes payable7266 — 266
Long-term debt79,345 — 9,345
Pension and other postretirement liabilities81,313 — 1,313
Other noncurrent liabilities4,9 2,603 (293) 2,310
Total liabilities assumed $ 15,353 $ (285) $ 15,068
Net liabilities assumed (885) (257) (1,142)
Goodwill4,10 7,746 304 8,050
$ 6,861 $ 47 $ 6,908
Less: Noncontrolling interests 13 — 13
Net assets acquired $ 6,848 $ 47 $ 6,895
1As previously reported in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended
December 31, 2010.
2The measurement period adjustments did not have a significant impact on our consolidated statements of income for the years ended
December 31, 2011, and December 31, 2010. In addition, these adjustments did not have a significant impact on our consolidated balance sheet as
of December 31, 2010. Therefore, we have not retrospectively adjusted the comparative 2010 financial information.
3The gross amount due under receivables we acquired was $1,226 million, of which $32 million was expected to be uncollectible.
4The measurement period adjustments were due to the finalization of appraisals related to intangible assets and certain fixed assets and resulted in
the following: a decrease to property, plant and equipment; an increase to franchise rights; and a decrease to noncurrent deferred tax liabilities.
The net impact of the measurement period adjustments and the payments made to New CCE that related to the finalization of working capital
adjustments resulted in a net increase to goodwill.
5Represents reacquired franchise rights that had previously provided CCE with exclusive and perpetual rights to manufacture and/or distribute
certain beverages in specified territories. These rights have been determined to have indefinite lives and are not amortized.
6Other intangible assets primarily relate to franchise rights that had previously provided CCE with exclusive rights to manufacture and/or distribute
certain beverages in specified territories for a finite period of time, and therefore have been classified as definite-lived intangible assets. The
estimated fair value of franchise rights with definite lives was $650 million as of the acquisition date. These franchise rights will be amortized over a
weighted-average life of approximately eight years, which is equal to the weighted-average remaining contractual term of the franchise rights. Other
intangible assets also include $380 million of customer relationships, which will be amortized over approximately 20 years.
7Refer to Note 10 for additional information.
8The assumed pension and other postretirement liabilities consisted of benefit obligations of $3,544 million and plan assets of $2,231 million. Refer
to Note 13 for additional information related to pension and other postretirement plans assumed from CCE.
9Primarily relates to deferred tax liabilities recorded on franchise rights. Refer to Note 14.
10 The goodwill recognized as part of this acquisition has been assigned to the North America operating segment. $170 million of this goodwill is tax
deductible. The goodwill recognized in conjunction with our acquisition of CCE’s North American business is primarily related to synergistic value
created from having a unified operating system that will strategically position us to better market and distribute our nonalcoholic beverage brands
in North America. It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.
93