Coca Cola 2013 Annual Report Download - page 120

In 2013, the Company recognized a net increase of $99 million in its valuation allowances. This increase was primarily due to the
addition of a deferred tax asset and related valuation allowance on certain equity method investments and increases in net
operating losses during the normal course of business operations. In addition, the Company recognized a reduction in the
valuation allowances primarily due to the reversal of a deferred tax asset and related valuation allowance on certain equity
method investments.
In 2012, the Company recognized a net decrease of $372 million in its valuation allowances. This decrease was primarily related to
the reversal of valuation allowances in several foreign jurisdictions. As a result of considering recent significant positive evidence,
including, among other items, a consistent pattern of earnings in the past three years, as well as business plans showing continued
profitability, it was determined that a valuation allowance was no longer required for certain deferred tax assets primarily recorded
on net operating losses in foreign jurisdictions. This decrease was also partially due to a transfer of a valuation allowance into
assets held for sale as required by accounting principles generally accepted in the United States upon execution of the share
purchase agreement for the sale of a majority interest in our consolidated Philippine bottling operations. Refer to Note 1 for
additional information on the Company’s accounting policy related to assets and liabilities held for sale. Refer to Note 2 for
additional information on the Company’s Philippine bottling operations. In addition, the Company recognized an increase in its
valuation allowances primarily due to the addition of a deferred tax asset and related valuation allowance on certain equity
method investments and increases in net operating losses during the normal course of business operations.
In 2011, the Company recognized a net decrease of $91 million in its valuation allowances. This decrease was primarily related to
the utilization of net operating losses during the normal course of business operations; the reversal of a deferred tax asset and
related valuation allowance on certain expiring attributes; and the reversal of a deferred tax asset and related valuation allowance
on certain equity method investments. In addition, the Company recognized an increase in the valuation allowances primarily due
to the carryforward of expenses disallowed in 2011 and increases in net operating losses during the normal course of business
operations.
NOTE 15: OTHER COMPREHENSIVE INCOME
AOCI attributable to shareowners of The Coca-Cola Company is separately presented on our consolidated balance sheets as a
component of The Coca-Cola Company’s shareowners’ equity, which also includes our proportionate share of equity method
investees’ AOCI. Other comprehensive income (loss) (‘‘OCI’’) attributable to noncontrolling interests is allocated to, and included
in, our balance sheets as part of the line item equity attributable to noncontrolling interests. AOCI attributable to shareowners of
The Coca-Cola Company consisted of the following (in millions):
December 31, 2013 2012
Foreign currency translation adjustment $ (2,849) $ (1,665)
Accumulated derivative net gains (losses) 197 46
Unrealized net gains (losses) on available-for-sale securities 258 338
Adjustments to pension and other benefit liabilities (1,038) (2,104)
Accumulated other comprehensive income (loss) $ (3,432) $ (3,385)
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