Coca Cola 2014 Annual Report Download - page 136

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134
• Income (loss) before income taxes was reduced by $53 million for Corporate due to charges the Company recognized on the
early extinguishment of certain long-term debt, including the hedge accounting adjustments reclassified from accumulated
other comprehensive income to earnings. Refer to Note 10.
In 2012, the results of our operating segments were impacted by the following items:
• Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $227 million for North
America, $3 million for Asia Pacific, $164 million for Bottling Investments and $38 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 $21 million for North America due to costs
associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States for use
on citrus products, in orange juice imported from Brazil for distribution in the United States. As a result, the Company began
purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. Refer to Note 17.
• Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to changes
in the Company’s ready-to-drink tea strategy as a result of our U.S. license agreement with Nestlé that terminated at the end of
2012. Refer to Note 17.
• Equity income (loss) — net and income (loss) before income taxes were increased by $8 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 increased by $185 million for Corporate due to the gain the Company recognized as a
result of the merger of Andina and Polar. Refer to Note 17.
• Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on the
pending sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA, which was completed
in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling operations were
classified as held for sale in our consolidated balance sheets. Refer to Note 17.
• Income (loss) before income taxes was increased by $92 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
amount of the Company’s per share investment. Refer to Note 17.
• Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership
interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the
acquisition date. Refer to Note 17.
• Income (loss) before income taxes was reduced by $16 million for Corporate due to other-than-temporary declines in the fair
values of certain cost method investments. Refer to Note 16 and Note 17.
• Income (loss) before income taxes was reduced by $1 million for Eurasia and Africa, $4 million for Europe, $2 million for
Latin America and $4 million for Asia Pacific due to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the
ready-to-drink tea category. Refer to Note 17.
NOTE 20: NET CHANGE IN OPERATING ASSETS AND LIABILITIES
Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the
following (in millions):
Year Ended December 31, 2014 2013 2012
(Increase) decrease in trade accounts
receivable
$ (253) $ 28 $ (33)
(Increase) decrease in
inventories
35 (105) (286)
(Increase) decrease in prepaid expenses and other assets 194 (163) (29)
Increase (decrease) in accounts payable and accrued
expenses
(250) (158) (556)
Increase (decrease) in accrued
taxes
151 22 770
Increase (decrease) in other
liabilities
(316) (556) (946)
Net change in operating assets and
liabilities
$ (439) $ (932) $ (1,080)