Coca Cola 2013 Annual Report Download - page 40

The following table presents the difference between calculated fair values, based on quoted closing prices of publicly traded
shares, and our Company’s cost basis in publicly traded bottlers accounted for as equity method investments (in millions):
Fair Carrying
December 31, 2013 Value Value Difference
Coca-Cola FEMSA, S.A.B. de C.V. $ 7,098 $ 2,247 $ 4,851
Coca-Cola Amatil Limited 2,459 854 1,605
Coca-Cola HBC AG 2,429 1,467 962
Coca-Cola ˙ I¸cecek A.¸S. 1,324 233 1,091
Coca-Cola East Japan Bottling Company, Ltd. 849 507 342
Embotelladora Andina S.A. 569 362 207
Coca-Cola Bottling Co. Consolidated 182 85 97
Total $ 14,910 $ 5,755 $ 9,155
Other Assets
Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our bottling system and
increasing unit case volume. Additionally, our Company advances payments to certain customers for distribution rights as well as
to fund future marketing activities intended to generate profitable volume and expenses such payments over the periods benefited.
Payments under these programs are generally capitalized and reported in the line items prepaid expenses and other assets or
other assets, as appropriate, in our consolidated balance sheets. When facts and circumstances indicate that the carrying value of
these assets (or asset groups) may not be recoverable, management assesses the recoverability of the carrying value by preparing
estimates of sales volume and the resulting gross profit and cash flows. These estimated future cash flows are consistent with those
we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less
than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying
amount exceeds the fair value.
Property, Plant and Equipment
As of December 31, 2013, the carrying value of our property, plant and equipment, net of depreciation, was $14,967 million, or
17 percent of our total assets. Certain events or changes in circumstances may indicate that the recoverability of the carrying
amount or remaining useful life of property, plant and equipment should be assessed, including, among others, the manner or
length of time in which the Company intends to use the asset, a significant decrease in market value, a significant change in the
business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or
projected future losses. When such events or changes in circumstances are present and an impairment review is performed, we
estimate the future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition. These
estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows
(undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment
loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to
determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are
consistent with the assumptions we believe hypothetical marketplace participants would use.
Goodwill, Trademarks and Other Intangible Assets
Intangible assets are classified into one of three categories: (1) intangible assets with definite lives subject to amortization,
(2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. For intangible assets with definite lives, tests
for impairment must be performed if conditions exist that indicate the carrying value may not be recoverable. For intangible assets
with indefinite lives and goodwill, tests for impairment must be performed at least annually or more frequently if events or
circumstances indicate that assets might be impaired.
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