Coca Cola 2015 Annual Report Download - page 56

Other Operating Charges
Other operating charges incurred by operating segment were as follows (in millions):
Year Ended December 31, 
2014
2013
Eurasia & Africa  
$ 26
$ 2
Europe 
111
57
Latin America 
295
—
North America 
281
277
Asia Pacific 
38
47
Bottling Investments 
247
194
Corporate 
185
318
Total  
$ 1,183
$ 895
In 2015, the Company incurred other operating charges of $1,657 million. These charges included $691 million due to the Company's productivity and
reinvestment program and $292 million due to the integration of our German bottling operations. In addition, the Company recorded impairment charges of
$418 million primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction and incurred a charge
of $100 million due to a cash contribution we made to The Coca-Cola Foundation. The Company also incurred a charge of $111 million due to the 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 as a result of the establishment of the new open market exchange system. Refer to Note 18 of Notes to Consolidated Financial Statements for
additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 2 of Notes to Consolidated Financial
Statements for additional information on the Monster Transaction. Refer to Note 1 of Notes to Consolidated Financial Statements for additional information
on the Venezuelan currency change. Refer to Note 19 of Notes to Consolidated Financial Statements for the impact these charges had on our operating
segments.
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 higher exchange rates. The write-down was recorded as a result of our revised assessment of the U.S. dollar value we expect to
realize upon the conversion of the Venezuelan bolivar into U.S. dollars by our bottling partner to pay our concentrate sales receivables. 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 of Notes to Consolidated Financial Statements and see below 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 of Notes to
Consolidated Financial Statements for additional information on the Venezuelan currency rate change. Refer to Note 19 of Notes to Consolidated Financial
Statements 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; $188 million due to the Company's other
productivity, integration and restructuring initiatives; and $22 million due to charges associated with certain of the Company's fixed assets. Refer to Note 17
of Notes to Consolidated Financial Statements for further information on the impairment charges. Refer to Note 18 of Notes to Consolidated Financial
Statements and see below for further information on the Company's productivity and reinvestment program, as well as the Company's other productivity,
integration and restructuring initiatives. Refer to Note 19 of Notes to Consolidated Financial Statements for the impact these charges had on our operating
segments.
Productivity and Reinvestment Program
In February 2012, the Company announced a four-year productivity and reinvestment program designed to further enable our efforts to strengthen our brands
and reinvest our resources to drive long-term profitable growth. This program is focused on the following initiatives: global supply chain optimization;
global marketing and innovation effectiveness; operating expense leverage and operational excellence; data and information technology systems
standardization; and the integration of Coca-Cola Enterprises Inc.'s ("Old CCE") former North America business.
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