Coca Cola 2014 Annual Report Download - page 23

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Results of Operations” of this report. Some of the actions we are taking in furtherance of our productivity initiatives may become a
distraction for our managers and employees and may disrupt our ongoing business operations; cause deterioration in employee morale
which may make it more difficult for us to retain or attract qualified managers and employees; disrupt or weaken the internal control
structures of the affected business operations; and give rise to negative publicity which could affect our corporate reputation. If we
are unable to successfully manage the possible negative consequences of these actions, our business operations could be adversely
affected.
Global or regional catastrophic events could impact our operations and financial results.
Because of our global presence and worldwide operations, our business can be affected by large-scale terrorist acts, especially those
directed against the United States or other major industrialized countries; the outbreak or escalation of armed hostilities; major
natural disasters; or widespread outbreaks of infectious diseases. Such events could impair our ability to manage our business around
the world, could disrupt our supply of raw materials and ingredients, and could impact production, transportation and delivery of
concentrates, syrups and finished products. In addition, such events could cause disruption of regional or global economic activity,
which can affect consumers’ purchasing power in the affected areas and, therefore, reduce demand for our products.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
Our worldwide headquarters is located on a 35-acre office complex in Atlanta, Georgia. The complex includes our 621,000 square foot
headquarters building and an 870,000 square foot building in which our North America group’s main offices are located. The complex
also includes several other buildings, including our 264,000 square foot Coca-Cola Plaza building, technical and engineering facilities
and a reception center. We also own an office and retail building at 711 Fifth Avenue in New York, New York. These properties, except
for the North America group’s main offices, are included in the Corporate operating segment.
We own or lease additional facilities, real estate and office space throughout the world which we use for administrative, manufacturing,
processing, packaging, storage, warehousing, distribution and retail operations. These properties are generally included in the
geographic operating segment in which they are located.
In North America, as of December 31, 2014, we owned 65 beverage production facilities, 10 principal beverage concentrate and/or
syrup manufacturing plants, one facility that manufactures juice concentrates for foodservice use, and two bottled water facilities;
we leased one beverage production facility, one bottled water facility and four container manufacturing facilities; and we operated
260 principal beverage distribution warehouses, of which 98 were leased and the rest were owned. Also included in the North America
operating segment is a portion of the Atlanta office complex consisting of the North America group’s main offices.
Additionally, outside of North America, as of December 31, 2014, our Company owned and operated 18 principal beverage
concentrate manufacturing plants, of which three are included in the Eurasia and Africa operating segment, three are included in
the Europe operating segment, five are included in the Latin America operating segment, and seven are included in the Asia Pacific
operating segment.
We own or hold a majority interest in or otherwise consolidate under applicable accounting rules bottling operations that, as of
December 31, 2014, owned 79 principal beverage bottling and canning plants located throughout the world. These plants are included
in the Bottling Investments operating segment.
Management believes that our Company’s facilities for the production of our products are suitable and adequate, that they are
being appropriately utilized in line with past experience, and that they have sufficient production capacity for their present intended
purposes. The extent of utilization of such facilities varies based upon seasonal demand for our products. However, management
believes that additional production can be obtained at the existing facilities by adding personnel and capital equipment and, at
some facilities, by adding shifts of personnel or expanding the facilities. We continuously review our anticipated requirements for
facilities and, on the basis of that review, may from time to time acquire additional facilities and/or dispose of existing facilities.