Coca Cola 2015 Annual Report Download - page 136

In 2014, the Company incurred other operating charges of $1,183 million. These charges primarily consisted of $601 million due to the Company's
productivity and reinvestment program and $208 million due to the integration of our German bottling operations. In addition, the Company incurred a
charge of $314 million due to a write-down we recorded related to receivables from our bottling partner in Venezuela and an impairment of a Venezuelan
trademark primarily due to changes in exchange rates. The write-down was recorded as a result of limited government-approved exchange rate conversion
mechanisms. The Company also recorded a loss of $36 million 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 18 for additional information on our productivity and reinvestment program as
well as the Company's other productivity, integration and restructuring initiatives. Refer to Note 1 for additional information on the Venezuelan currency
change. Refer to Note 19 for the impact these charges had on our operating segments.
In 2013, the Company incurred other operating charges of $895 million, which primarily consisted of $494 million associated with the Company's
productivity and reinvestment program; $195 million due to the impairment of certain intangible assets described below; $188 million due to the Company's
other restructuring and integration initiatives; and $22 million due to charges associated with certain of the Company's fixed assets. Refer to Note 18 for
additional information on our productivity and reinvestment program as well as the Company's other productivity, integration and restructuring initiatives.
Refer to Note 19 for the impact these charges had on our operating segments.
During the year ended December 31, 2013, the Company recorded charges of $195 million related to certain intangible assets. These charges included $113
million related to the impairment of trademarks recorded in our Bottling Investments and Asia Pacific operating segments. These impairments were primarily
due to a strategic decision to phase out certain local-market value brands, which resulted in a change in the expected useful life of the intangible assets. The
charges were determined by comparing the fair value of the trademarks, derived using discounted cash flow analyses, to the current carrying value.
Additionally, the remaining charge of $82 million was related to goodwill recorded in our Bottling Investments operating segment. This charge was primarily
the result of management's revised outlook on market conditions and volume performance.
Other Nonoperating Items
Interest Expense
During the year ended December 31, 2015, the Company recorded charges of $320 million due to the early extinguishment of certain long-term debt. These
charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair
value hedging relationship. Refer to Note 10 for additional information and Note 19 for the impact this charge had on our operating segments.
Equity Income (Loss) — Net
The Company recorded net charges of $87 million, $18 million and $159 million in equity income (loss) — net during the years ended December 31, 2015,
2014 and 2013, respectively. These amounts primarily represent the Company's proportionate share of unusual or infrequent items recorded by certain of our
equity method investees. Refer to Note 19 for the impact these charges had on our operating segments.
Other Income (Loss) — Net
In 2015, the Company recorded a net gain of $1,403 million as a result of the Monster Transaction and charges of $1,006 million due to the refranchising of
certain territories in North America. In addition, the Company recognized a foreign currency exchange gain of $300 million associated with our foreign-
denominated debt partially offset by a charge of $27 million due to the remeasurement of the net monetary assets of our Venezuelan subsidiary using the
SIMADI exchange rate. Refer to Note 2 for additional information related to the Monster Transaction and North America refranchising. Refer to Note 1 for
additional information related to the charge due to the remeasurement in Venezuela. Refer to Note 19 for the impact these items had on our operating
segments.
In 2014, the Company recorded charges of $799 million due to the refranchising of certain territories in North America. The Company also incurred a charge
of $372 million due to the remeasurement of the net monetary assets of our Venezuelan subsidiary using the SICAD 2 exchange rate. Refer to Note 2 for more
information related to the North America refranchising, Note 1 for more information related to the charge due to the remeasurement in Venezuela and Note 19
for the impact these charges had on our operating segments.
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