Coca Cola 2014 Annual Report Download - page 121

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allowances and a reduction of income tax expense. The Company believes that it will generate sufficient future taxable income to
realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets.
In 2014, the Company recognized a net increase of $63 million in its valuation allowances. This increase was primarily due to the
increase in net operating losses during the normal course of business operations and due to the remeasurement of the net monetary
assets of our local Venezuelan subsidiary into U.S. dollars using the SICAD 2 exchange rate. The Company recognized a reduction in
the valuation allowances primarily due to changes in deferred tax assets and related valuation allowances on certain equity investments
and decreases in net operating losses during the normal course of business operations.
In 2013, the Company recognized a net increase of $99 million in its valuation allowances. This increase was primarily due to the
addition of a deferred tax asset and related valuation allowance on certain equity method investments and increases in net operating
losses during the normal course of business operations. In addition, the Company recognized a reduction in the valuation allowances
primarily due to the reversal of a deferred tax asset and related valuation allowance on certain equity method investments.
In 2012, the Company recognized a net decrease of $372 million in its valuation allowances. This decrease was primarily related to
the reversal of valuation allowances in several foreign jurisdictions. As a result of considering recent significant positive evidence,
including, among other items, a consistent pattern of earnings in the past three years, as well as business plans showing continued
profitability, it was determined that a valuation allowance was no longer required for certain deferred tax assets primarily recorded on
net operating losses in foreign jurisdictions. This decrease was also partially due to a transfer of a valuation allowance into assets held
for sale as required by accounting principles generally accepted in the United States upon execution of the share purchase agreement
for the sale of a majority interest in our consolidated Philippine bottling operations. Refer to Note 1 for additional information on
the Company’s accounting policy related to assets and liabilities held for sale. Refer to Note 2 for additional information on the
Company’s Philippine bottling operations. In addition, the Company recognized an increase in its valuation allowances primarily
due to the addition of a deferred tax asset and related valuation allowance on certain equity method investments and increases in net
operating losses during the normal course of business operations.
NOTE 15: OTHER COMPREHENSIVE INCOME
AOCI attributable to shareowners of The Coca-Cola Company is separately presented on our consolidated balance sheets as a
component of The Coca-Cola Company’s shareowners’ equity, which also includes our proportionate share of equity method investees’
AOCI. Other comprehensive income (loss) (“OCI”) attributable to noncontrolling interests is allocated to, and included in, our
balance sheets as part of the line item equity attributable to noncontrolling interests.
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following (in millions):
December 31, 2014 2013
Foreign currency translation adjustment $
(5,226)
$ (2,849)
Accumulated derivative net gains (losses) 554 197
Unrealized net gains (losses) on available-for-sale securities 972 258
Adjustments to pension and other benefit liabilities (2,077) (1,038)
Accumulated other comprehensive income (loss) $
(5,777)
$ (3,432)