Coca Cola 2014 Annual Report Download - page 101

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NOTE 6: EQUITY METHOD INVESTMENTS
Our consolidated net income includes our Company’s proportionate share of the net income or loss of our equity method investees.
When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statements of
income and our carrying value in that investment. Conversely, when we record our proportionate share of a net loss, it decreases
equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. The Company’s
proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items
recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net
in our consolidated statements of income and our carrying value in those investments. Refer to Note 17 for additional information
related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity
method investments are also impacted by our proportionate share of items impacting the equity investee’s AOCI.
We eliminate from our financial results all significant intercompany transactions, including the intercompany portion of transactions
with equity method investees.
The Company’s equity method investments include our ownership interests in Coca-Cola FEMSA, Coca-Cola Hellenic and Coca-Cola
Amatil. As of December 31, 2014, we owned 28 percent, 23 percent and 29 percent, respectively, of these companies’ outstanding
shares. As of December 31, 2014, our investment in our equity method investees in the aggregate exceeded our proportionate share of
the net assets of these equity method investees by $1,671 million. This difference is not amortized.
A summary of financial information for our equity method investees in the aggregate is as follows (in millions):
Year Ended December 31, 2014 2013 2012
Net operating revenues $ 52,627 $ 53,038 $ 47,087
Cost of goods sold 31,810 32,377 28,821
Gross profit $ 20,817 $ 20,661 $ 18,266
Operating income $ 4,489 $ 4,380 $ 4,605
Consolidated net income $ 2,440 $ 2,364 $ 2,993
Less: Net income attributable to noncontrolling interests 74 62 89
Net income attributable to common shareowners $ 2,366 $ 2,302 $ 2,904
Equity income (loss) — net $ 769 $ 602 $ 819
December 31, 2014 2013
Current assets $ 16,184 $ 19,229
Noncurrent assets 40,080 40,427
Total assets $ 56,264 $ 59,656
Current liabilities $ 12,477 $ 14,386
Noncurrent
liabilities
16,657 17,779
Total liabilities $ 29,134 $ 32,165
Equity attributable to shareowners of investees $ 26,363 $ 26,668
Equity attributable to noncontrolling interests 767 823
Total equity $ 27,130 $ 27,491
Company equity investment $ 9,947 $ 10,393
Net sales to equity method investees, the majority of which are located outside the United States, were $10,063 million, $9,178 million
and $7,082 million in 2014, 2013 and 2012, respectively. Total payments, primarily marketing, made to equity method investees were
$1,605 million, $1,807 million and $1,587 million in 2014, 2013 and 2012, respectively. In addition, purchases of finished products from
equity method investees were $381 million, $415 million and $392 million in 2014, 2013 and 2012, respectively.
If valued at the December 31, 2014 quoted closing prices of shares actively traded on stock markets, the value of our equity method
investments in publicly traded bottlers would have exceeded our carrying value by $5,443 million.