Coca Cola 2013 Annual Report Download - page 135

In 2013, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa,
$57 million for Europe, $282 million for North America, $26 million for Pacific, $194 million for Bottling Investments and
$121 million for Corporate due to charges related to the Company’s productivity and reinvestment program as well as other
restructuring initiatives. Refer to Note 18.
• Operating income (loss) and income (loss) before income taxes were reduced by $195 million for Corporate due to
impairment charges recorded on certain of the Company’s intangible assets. Refer to Note 8 and Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Pacific due to charges
associated with certain of the Company’s fixed assets. Refer to Note 17.
• Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on
the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling
partner. Refer to Note 2.
• Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due
to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method
investee that has operations in Venezuela. Refer to Note 1 and Note 17.
• Income (loss) before income taxes was reduced by a net $114 million for Corporate due to the merger of four of the
Company’s Japanese bottling partners in which we held equity method investments prior to their merger into CCEJ. Refer
to Note 2 and Note 17.
• Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a
result of Coca-Cola FEMSA issuing additional shares of its own stock during the year at a per share amount greater than
the carrying value of the Company’s per share investment. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by a net $159 million for Bottling Investments due to the Company’s
proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17.
• Income (loss) before income taxes was reduced by $53 million for Corporate due to charges the Company recognized on
the early extinguishment of certain long-term debt, including the hedge accounting adjustments reclassified from
accumulated other comprehensive income to earnings. Refer to Note 10.
In 2012, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $227 million for
North America, $3 million for Pacific, $164 million for Bottling Investments and $38 million for Corporate due to charges
related to the Company’s productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18.
• Operating income (loss) and income (loss) before income taxes were reduced by $21 million for North America due to
costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States
for use on citrus products, in orange juice imported from Brazil for distribution in the United States. As a result, the
Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. Refer to
Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to
changes in the Company’s ready-to-drink tea strategy as a result of our U.S. license agreement with Nestl´ e that terminated
at the end of 2012. Refer to Note 17.
• Equity income (loss) — net and income (loss) before income taxes were increased by $8 million for Bottling Investments
due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method
investees. Refer to Note 17.
• Income (loss) before income taxes was increased by $185 million for Corporate due to the gain the Company recognized as
a result of the merger of Andina and Polar. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on
the pending sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA, which was
completed in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling
operations were classified as held for sale in our consolidated balance sheets. Refer to Note 16 and Note 17.
133