Coca Cola 2014 Annual Report Download - page 135

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In 2014, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $26 million for Eurasia and Africa,
$111 million for Europe, $20 million for Latin America, $281 million for North America, $36 million for Asia Pacific,
$211 million for Bottling Investments and $124 million for Corporate due to charges related to the Company’s productivity
and reinvestment program as well as other restructuring initiatives. Refer to Note 18.
• Operating income (loss) and income (loss) before income taxes were reduced by $42 million for Bottling Investments as
a result of the restructuring and transition of the Company’s Russian juice operations to an existing joint venture with an
unconsolidated bottling partner. Refer to Note 17.
• Income (loss) before income taxes was reduced by $2 million for Europe and $16 million for Bottling Investments due to the
Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to
Note 17.
• Income (loss) before income taxes was reduced by $799 million for North America due to the refranchising of certain
territories. Refer to Note 2 and Note 17.
• Income (loss) before income taxes was reduced by $275 million for Latin America and $411 million for Corporate due to the
remeasurement of the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SICAD 2 exchange
rate, an impairment of a Venezuelan trademark, and a write-down the Company recorded on the concentrate sales receivables
from our bottling partner in Venezuela. Refer to Note 1 and Note 17.
• Income (loss) before income taxes was increased by $25 million for Bottling Investments due to the elimination of
intercompany profits resulting from a write-down we recorded on the concentrate sales receivables from our bottling partner in
Venezuela, an equity method investee, partially offset by our proportionate share of their remeasurement loss. Refer to Note 1.
• Income (loss) before income taxes was reduced by $32 million for Corporate as a result of a Brazilian bottling entity’s majority
interest owners exercising their option to acquire from us an additional equity interest at an exercise price less than that of our
carrying value. Refer to Note 2 and Note 17.
In 2013, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa,
$57 million for Europe, $282 million for North America, $26 million for Asia Pacific, $194 million for Bottling Investments
and $121 million for Corporate due to charges related to the Company’s productivity and reinvestment program as well as
other restructuring initiatives. Refer to Note 18.
• Operating income (loss) and income (loss) before income taxes were reduced by $195 million for Corporate due to impairment
charges recorded on certain of the Company’s intangible assets. Refer to Note 8 and Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Asia Pacific due to charges
associated with certain of the Company’s fixed assets. Refer to Note 17.
• Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the
deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner.
Refer to Note 2.
• Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due
to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method
investee that has operations in Venezuela. Refer to Note 1 and Note 17.
• Income (loss) before income taxes was reduced by a net $114 million for Corporate due to the merger of four of the Company’s
Japanese bottling partners in which we held equity method investments prior to their merger into CCEJ. Refer to Note 2 and
Note 17.
• Income (loss) before income taxes was increased by $139 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 value of the Company’s per share investment. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by a net $159 million for Bottling Investments due to the Company’s
proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17.