Coca Cola 2013 Annual Report Download - page 22

We may be required to recognize impairment charges that could materially affect our financial results.
We assess our goodwill, trademarks and other intangible assets as well as our other long-lived assets as and when required by
accounting principles generally accepted in the United States to determine whether they are impaired and, if they are, we record
appropriate impairment charges. Our equity method investees also perform impairment tests, and we record our proportionate
share of impairment charges recorded by them adjusted, as appropriate, for the impact of items such as basis differences, deferred
taxes and deferred gains. It is possible that we may be required to record significant impairment charges or our proportionate
share of significant charges recorded by equity method investees in the future and, if we do so, our operating or equity income
could be materially adversely affected.
We may incur multi-employer plan withdrawal liabilities in the future, which could negatively impact our financial performance.
We participate in certain multi-employer pension plans in the United States. Our U.S. multi-employer pension plan expense
totaled $37 million in 2013. The U.S. multi-employer pension plans in which we currently participate have contractual
arrangements that extend into 2018. If, in the future, we choose to withdraw from any of the multi-employer pension plans in
which we participate, we will likely need to record withdrawal liabilities, which could negatively impact our financial performance
in the applicable periods.
If we do not successfully integrate and manage our Company-owned or -controlled bottling operations, our results could suffer.
From time to time we acquire or take control of bottling operations, often in underperforming markets where we believe we can
use our resources and expertise to improve performance. We may incur unforeseen liabilities and obligations in connection with
acquiring, taking control of or managing bottling operations and may encounter unexpected difficulties and costs in restructuring
and integrating them into our Company’s operating and internal control structures. We may also experience delays in extending
our Company’s internal control over financial reporting to newly acquired or controlled bottling operations, which may increase
the risk of failure to prevent misstatements in such operations’ financial records and in our consolidated financial statements. Our
financial performance depends in large part on how well we can manage and improve the performance of Company-owned or
-controlled bottling operations. We cannot assure you, however, that we will be able to achieve our strategic and financial
objectives for such bottling operations. If we are unable to achieve such objectives, our consolidated results could be negatively
affected.
Global or regional catastrophic events could impact our operations and financial results.
Because of our global presence and worldwide operations, our business can be affected by large-scale terrorist acts, especially
those directed against the United States or other major industrialized countries; the outbreak or escalation of armed hostilities;
major natural disasters; or widespread outbreaks of infectious diseases. Such events could impair our ability to manage our
business around the world, could disrupt our supply of raw materials and ingredients, and could impact production, transportation
and delivery of concentrates, syrups and finished products. In addition, such events could cause disruption of regional or global
economic activity, which can affect consumers’ purchasing power in the affected areas and, therefore, reduce demand for our
products.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
Our worldwide headquarters is located on a 35-acre office complex in Atlanta, Georgia. The complex includes our 621,000 square
foot headquarters building and an 870,000 square foot building in which our North America group’s main offices are located. The
complex also includes several other buildings, including our 264,000 square foot Coca-Cola Plaza building, technical and
engineering facilities, a learning center and a reception center. We also own an office and retail building at 711 Fifth Avenue in
New York, New York. These properties, except for the North America group’s main offices, are included in the Corporate
operating segment.
We own or lease additional facilities, real estate and office space throughout the world which we use for administrative,
manufacturing, processing, packaging, storage, warehousing, distribution and retail operations. These properties are generally
included in the geographic operating segment in which they are located.
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