Coca Cola 2013 Annual Report Download - page 136

• Income (loss) before income taxes was increased by $92 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 amount of the Company’s per share investment. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership
interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the
acquisition date. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $16 million for Corporate due to other-than-temporary declines in the
fair values of certain cost method investments. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $1 million for Eurasia and Africa, $4 million for Europe, $2 million for
Latin America and $4 million for Pacific due to changes in the structure of BPW, our 50/50 joint venture with Nestl´ e in the
ready-to-drink tea category. Refer to Note 17.
In 2011, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa,
$25 million for Europe, $4 million for Latin America, $374 million for North America, $4 million for Pacific, $89 million
for Bottling Investments and $164 million for Corporate, primarily due to the Company’s ongoing productivity, integration
and restructuring initiatives as well as costs associated with the merger of Arca and Contal. Refer to Note 18 for additional
information on our productivity, integration and restructuring initiatives. Refer to Note 17 for additional information
related to the merger of Arca and Contal.
• Operating income (loss) and income (loss) before income taxes were reduced by $82 million for Pacific and $2 million for
North America due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on
March 11, 2011. Refer to Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $10 million for Corporate due to charges
associated with the floods in Thailand that impacted the Company’s supply chain operations in the region. Refer to
Note 17.
• Equity income (loss) — net and income (loss) before income taxes were reduced by $53 million for Bottling Investments,
primarily attributable to the Company’s proportionate share of asset impairments and restructuring charges recorded by
certain of our equity method investees. Refer to Note 17.
• Income (loss) before income taxes was increased by a net $417 million for Corporate, primarily due to the gain the
Company recognized as a result of the merger of Arca and Contal. Refer to Note 17.
• Income (loss) before income taxes was increased by a net $122 million for Corporate, primarily due to gains the Company
recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the year at per share amounts
greater than the carrying value of the Company’s per share investment. These gains were partially offset by charges
associated with certain of the Company’s equity method investments in Japan. Refer to Note 17.
• Income (loss) before income taxes was increased by $102 million for Corporate, primarily due to the gain on the sale of
our investment in Embonor, a bottling partner with operations primarily in Chile. Prior to this transaction, the Company
accounted for our investment in Embonor under the equity method of accounting. Refer to Note 17.
• Income (loss) before income taxes was reduced by $41 million for Corporate due to the impairment of an investment in an
entity accounted for under the equity method of accounting. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $17 million for Corporate due to other-than-temporary impairments of
certain available-for-sale securities. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $9 million for Corporate due to the net charge we recognized on the
repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE’s former North
America business as well as the early extinguishment of certain other long-term debt. Refer to Note 10.
• Income (loss) before income taxes was reduced by $5 million for Corporate due to the finalization of working capital
adjustments related to the sale of our Norwegian and Swedish bottling operations to CCE. Refer to Note 2 and Note 17.
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