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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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DELAWARE
(State or other jurisdiction of
incorporation or organization)
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58-0628465
(IRS Employer
Identification No.)
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One Coca-Cola Plaza
Atlanta, Georgia
(Address of principal executive offices)
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30313
(Zip Code)
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Title of each class
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Name of each exchange on which registered
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COMMON STOCK, $0.25 PAR VALUE
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NEW YORK STOCK EXCHANGE
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Large accelerated filer
ý
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page
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Part I
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Part II
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Part III
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Part IV
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•
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Eurasia and Africa
|
•
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Europe
|
•
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Latin America
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•
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North America
|
•
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Pacific
|
•
|
Bottling Investments
|
•
|
Corporate
|
•
|
"concentrates" means flavoring ingredients and, depending on the product, sweeteners used to prepare syrups or finished beverages, and includes powders for purified water products such as Dasani;
|
•
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"syrups" means beverage ingredients produced by combining concentrates and, depending on the product, sweeteners and added water;
|
•
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"fountain syrups" means syrups that are sold to fountain retailers, such as restaurants and convenience stores, which use dispensing equipment to mix the syrups with sparkling or still water at the time of purchase to produce finished beverages that are served in cups or glasses for immediate consumption;
|
•
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"sparkling beverages" means nonalcoholic ready-to-drink beverages with carbonation, including carbonated energy drinks and carbonated waters and flavored waters;
|
•
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"still beverages" means nonalcoholic beverages without carbonation, including noncarbonated waters, flavored waters and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks;
|
•
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"Company Trademark Beverages" means beverages bearing our trademarks and certain other beverage products bearing trademarks licensed to us by third parties for which we provide marketing support and from the sale of which we derive economic benefit; and
|
•
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"Trademark Coca-Cola Beverages" or "Trademark Coca-Cola" means beverages bearing the trademark Coca-Cola or any trademark that includes Coca-Cola or Coke (that is, Coca-Cola, Diet Coke and Coca-Cola Zero and all their variations and line extensions, including Coca-Cola Light, caffeine free Diet Coke, Cherry Coke, etc.). Likewise, when we use the capitalized word "Trademark" together with the name of one of our other beverage products (such as "Trademark Fanta," "Trademark Sprite" or "Trademark Simply"), we mean beverages bearing the indicated trademark (that is, Fanta, Sprite or Simply, respectively) and all its variations and line extensions (such that "Trademark Fanta" includes Fanta Orange, Fanta Zero Orange and Fanta Apple; "Trademark Sprite" includes Sprite, Diet Sprite, Sprite Zero and Sprite Light; and "Trademark Simply" includes Simply Orange, Simply Apple and Simply Grapefruit).
|
•
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beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished sparkling and still beverages (we refer to this part of our business as our "finished products business" or "finished products operations").
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SPARKLING BEVERAGES*
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STILL BEVERAGES*
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||||||
Core Sparkling
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Energy Drinks
†
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Juices and Juice Drinks
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Coffees and Teas
|
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Waters
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Coca-Cola
|
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Burn
|
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Minute Maid
1
|
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Nestea teas
2
|
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Ciel
1
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Sprite
|
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Nos
4
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|
Minute Maid Pulpy
|
|
Georgia coffees
3
|
|
Dasani
1
|
Fanta
5
|
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Real Gold
3
|
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Del Valle
9
|
|
Leão / Matte Leão teas
7
|
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Ice Dew
8
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Diet Coke / Coca-Cola Light
|
|
|
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Simply
4
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Sokenbicha teas
3
|
|
Bonaqua / Bonaqa
1
|
Coca-Cola Zero
|
|
|
|
Hi-C
|
|
Dogadan teas
10
|
|
Kinley
11
|
Schweppes
12
|
|
|
|
Dobriy
6
|
|
Ayataka teas
3
|
|
|
Thums Up
13
|
|
|
|
Cappy
1
|
|
|
|
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Fresca
|
|
|
|
|
|
|
|
|
Inca Kola
15
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|
|
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Other Still Beverages
|
|
|
|
Sports Drinks
|
Lift
|
|
|
|
glacéau vitaminwater
|
|
|
|
Powerade
1
|
Barq's
4
|
|
|
|
Fuze
4
|
|
|
|
Aquarius
14
|
*
|
Includes, for each brand, all flavor variations and line extensions. Unless otherwise indicated in a footnote below, products under the brands are sold in markets across two or more geographic operating groups.
|
†
|
In some markets, certain of our energy drink products are still beverages.
|
1
|
In some markets, certain products sold under this brand are sparkling beverages.
|
2
|
Nestea products are distributed in the United States under a sublicense from a subsidiary of Nestlé S.A. ("Nestlé"), and in various other markets worldwide through Beverage Partners Worldwide ("BPW"), the Company's joint venture with Nestlé. The Nestea trademark is owned by Société des Produits Nestlé S.A. In January 2012, the Company and Nestlé announced that they are refocusing BPW on markets in Europe and Canada. In Taiwan and Hong Kong, the Company will enter into a license agreement with Nestlé for Nestea. In all other territories, the joint venture will be phased out by the end of 2012. In addition, the sublicense agreement for Nestea in the United States will terminate at the end of 2012. In some markets, certain Nestea products are sparkling beverages.
|
3
|
Sold primarily in Japan.
|
4
|
Sold primarily in North America.
|
5
|
In some markets, certain Fanta products are still beverages.
|
6
|
Dobriy juice products are manufactured, marketed and sold primarily in Russia, Ukraine and Belarus by Multon, a Russian juice business operated as a joint venture with Coca-Cola Hellenic Bottling Company S.A. Certain products sold under this brand are sparkling beverages.
|
7
|
The Company manufactures, markets and sells Leão / Matte Leão teas in Brazil through a joint venture with our bottling partners.
|
8
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Sold in China.
|
9
|
The Company manufactures, markets and sells juices and juice drinks under the Del Valle trademark through joint ventures with our bottling partners in Mexico and Brazil.
|
10
|
Sold in Turkey.
|
11
|
Kinley is also a sparkling beverage in certain countries.
|
12
|
The Schweppes brand is owned by the Company in some countries (excluding the U.S., among others). In some markets, certain Schweppes products are still beverages.
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13
|
Sold primarily in India.
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14
|
In some markets, we offer water products or sparkling beverages in addition to sports drinks under the brand Aquarius.
|
15
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Sold primarily in Latin America (Chile, Ecuador and Peru).
|
•
|
below a "safe harbor" threshold that may be established;
|
•
|
naturally occurring;
|
•
|
the result of necessary cooking; or
|
•
|
subject to another applicable exemption.
|
|
Common Stock
Market Prices
|
|
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||||||||
|
High
|
|
|
Low
|
|
|
Dividends
Declared
|
|
|||
2011
|
|
|
|
|
|
||||||
Fourth quarter
|
$
|
70.29
|
|
|
$
|
63.34
|
|
|
$
|
0.47
|
|
Third quarter
|
71.77
|
|
|
63.59
|
|
|
0.47
|
|
|||
Second quarter
|
68.77
|
|
|
64.43
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|
|
0.47
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|
|||
First quarter
|
67.48
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|
|
61.29
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|
|
0.47
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|
|||
2010
|
|
|
|
|
|
||||||
Fourth quarter
|
$
|
65.88
|
|
|
$
|
58.55
|
|
|
$
|
0.44
|
|
Third quarter
|
59.24
|
|
|
50.02
|
|
|
0.44
|
|
|||
Second quarter
|
55.56
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|
|
49.47
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|
|
0.44
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|||
First quarter
|
57.43
|
|
|
52.23
|
|
|
0.44
|
|
Period
|
Total Number of
Shares Purchased
1
|
|
|
Average
Price Paid
Per Share
|
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
2
|
|
|
Maximum Number of
Shares That May
Yet Be Purchased
Under the Publicly
Announced Plans
or Programs
|
|
|
October 1, 2011 through October 28, 2011
|
1,370,988
|
|
|
$
|
66.42
|
|
|
1,350,000
|
|
|
93,759,148
|
|
October 29, 2011 through November 25, 2011
|
3,926,672
|
|
|
67.33
|
|
|
3,800,000
|
|
|
89,959,148
|
|
|
November 26, 2011 through December 31, 2011
|
8,244,042
|
|
|
67.83
|
|
|
7,979,076
|
|
|
81,980,072
|
|
|
Total
|
13,541,702
|
|
|
$
|
67.54
|
|
|
13,129,076
|
|
|
|
|
1
|
The total number of shares purchased includes: (i) shares purchased pursuant to the 2006 Plan described in footnote 2 below and (ii) shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding obligations in connection with so-called stock swap exercises of employee stock options and/or the vesting of restricted stock issued to employees, totaling 20,988 shares, 126,672 shares and 264,966 shares for the fiscal months of October, November and December 2011, respectively.
|
2
|
On July 20, 2006, we publicly announced that our Board of Directors had authorized a plan (the "2006 Plan") for the Company to purchase up to 300 million shares of our Company's common stock. This column discloses the number of shares purchased pursuant to the 2006 Plan during the indicated time periods.
|
Year Ended December 31,
|
2011
|
|
|
2010
1
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
|
|||||
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
||||||||||
SUMMARY OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
46,542
|
|
|
$
|
35,119
|
|
|
$
|
30,990
|
|
|
$
|
31,944
|
|
|
$
|
28,857
|
|
Net income attributable to shareowners of
The Coca-Cola Company
|
8,572
|
|
|
11,809
|
|
|
6,824
|
|
|
5,807
|
|
|
5,981
|
|
|||||
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income
|
$
|
3.75
|
|
|
$
|
5.12
|
|
|
$
|
2.95
|
|
|
$
|
2.51
|
|
|
$
|
2.59
|
|
Diluted net income
|
3.69
|
|
|
5.06
|
|
|
2.93
|
|
|
2.49
|
|
|
2.57
|
|
|||||
Cash dividends
|
1.88
|
|
|
1.76
|
|
|
1.64
|
|
|
1.52
|
|
|
1.36
|
|
|||||
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
79,974
|
|
|
$
|
72,921
|
|
|
$
|
48,671
|
|
|
$
|
40,519
|
|
|
$
|
43,269
|
|
Long-term debt
|
13,656
|
|
|
14,041
|
|
|
5,059
|
|
|
2,781
|
|
|
3,277
|
|
1
|
Includes the impact of the Company's acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. Both of these transactions occurred on October 2, 2010. This information also includes the impact of the deconsolidation of certain entities, primarily bottling operations, on January 1, 2010, as a result of the Company's adoption of new accounting guidance issued by the Financial Accounting Standards Board ("FASB"). Refer to
Note 1
and
Note 2
of Notes to Consolidated Financial Statements.
|
•
|
Our Business —
a general description of our business and the nonalcoholic beverage segment of the commercial beverage industry, our objective, our strategic priorities, our core capabilities, and challenges and risks of our business.
|
•
|
Critical Accounting Policies and Estimates —
a discussion of accounting policies that require critical judgments and estimates.
|
•
|
Operations Review —
an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating segments are material to an understanding of our business as a whole, we present the discussion in the MD&A on a consolidated basis.
|
•
|
Liquidity, Capital Resources and Financial Position —
an analysis of cash flows; off-balance sheet arrangements and aggregate contractual obligations; foreign exchange; an overview of financial position; and the impact of inflation and changing prices.
|
•
|
beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished sparkling and still beverages (we refer to this part of our business as our "finished products business" or "finished products operations").
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Concentrate operations
1
|
39
|
%
|
|
51
|
%
|
|
54
|
%
|
Finished products operations
2
|
61
|
|
3
|
49
|
|
3
|
46
|
|
Net operating revenues
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
1
|
Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
3
|
Includes net operating revenues related to the acquired CCE North American business for the full year in 2011. In 2010, the percentage includes net operating revenues from the date of the CCE acquisition on October 2, 2010.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Concentrate operations
1
|
70
|
%
|
|
76
|
%
|
|
78
|
%
|
Finished products operations
2
|
30
|
|
3
|
24
|
|
3
|
22
|
|
Total worldwide unit case volume
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
1
|
Includes unit case volume related to concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes unit case volume related to fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
3
|
Includes unit case volume related to the acquired CCE North American business for the full year in 2011. In 2010, the percentage includes unit case volume from the date of the CCE acquisition on October 2, 2010.
|
•
|
People: Being a great place to work where people are inspired to be the best they can be.
|
•
|
Portfolio: Bringing to the world a portfolio of beverage brands that anticipates and satisfies people's desires and needs.
|
•
|
Partners: Nurturing a winning network of partners and building mutual loyalty.
|
•
|
Planet: Being a responsible global citizen that makes a difference.
|
•
|
Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
|
•
|
Productivity: Managing our people, time and money for greatest effectiveness.
|
•
|
Principles of Consolidation
|
•
|
Purchase Accounting for Acquisitions
|
•
|
Recoverability of Noncurrent Assets
|
•
|
Pension Plan Valuations
|
•
|
Revenue Recognition
|
•
|
Income Taxes
|
December 31, 2011
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Equity method investments
|
$
|
7,233
|
|
|
9
|
%
|
Securities classified as available-for-sale
|
1,401
|
|
|
2
|
|
|
Securities classified as trading
|
211
|
|
|
*
|
|
|
Cost method investments
|
155
|
|
|
*
|
|
|
Securities classified as held-to-maturity
|
113
|
|
|
*
|
|
|
Total
|
$
|
9,113
|
|
|
11
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
December 31, 2011
|
Fair
Value
|
|
|
Carrying
Value
|
|
|
Difference
|
|
|||
Coca-Cola FEMSA, S.A.B. de C.V.
|
$
|
5,532
|
|
|
$
|
1,569
|
|
|
$
|
3,963
|
|
Coca-Cola Amatil Limited
|
2,551
|
|
|
999
|
|
|
1,552
|
|
|||
Coca-Cola Hellenic Bottling Company S.A.
|
1,506
|
|
|
1,442
|
|
|
64
|
|
|||
Coca-Cola Icecek A.S.
|
622
|
|
|
155
|
|
|
467
|
|
|||
Coca-Cola Central Japan
|
183
|
|
|
186
|
|
|
(3
|
)
|
|||
Embotelladoras Coca-Cola Polar S.A.
|
154
|
|
|
86
|
|
|
68
|
|
|||
Coca-Cola Bottling Co. Consolidated
|
145
|
|
|
84
|
|
|
61
|
|
|||
Total
|
$
|
10,693
|
|
|
$
|
4,521
|
|
|
$
|
6,172
|
|
December 31, 2011
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Goodwill
|
$
|
12,219
|
|
|
15
|
%
|
Bottlers' franchise rights with indefinite lives
|
7,770
|
|
|
10
|
|
|
Trademarks with indefinite lives
|
6,430
|
|
|
8
|
|
|
Definite-lived intangible assets, net
|
1,137
|
|
|
1
|
|
|
Other intangible assets not subject to amortization
|
113
|
|
|
*
|
|
|
Total
|
$
|
27,669
|
|
|
35
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
•
|
on October 2, 2010, in legally separate transactions, we acquired CCE's North American business and entered into a license agreement with DPS;
|
•
|
on October 2, 2010, we sold all of our ownership interests in our Norwegian and Swedish bottling operations to New CCE; and
|
•
|
on January 1, 2010, we deconsolidated certain entities, primarily bottling operations, as a result of the Company's adoption of new accounting guidance issued by the FASB.
|
•
|
During the first quarter of 2011, the Company repurchased all of our outstanding U.K. pound sterling notes that had a carrying value of $
674 million
;
|
•
|
During the second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
42 million
; and
|
•
|
During the third quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
19 million
.
|
|
Percent Change
|
||||||||||
|
2011 vs. 2010
|
|
2010 vs. 2009
|
||||||||
Year Ended December 31,
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
Worldwide
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
|
5
|
%
|
Eurasia & Africa
|
6
|
%
|
|
5
|
%
|
|
12
|
%
|
|
12
|
%
|
Europe
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Latin America
|
6
|
|
|
5
|
|
|
5
|
|
|
7
|
|
North America
|
4
|
|
|
4
|
|
|
2
|
|
|
2
|
|
Pacific
|
5
|
|
|
6
|
|
|
6
|
|
|
6
|
|
Bottling Investments
|
—
|
|
|
N/A
|
|
|
(1
|
)
|
|
N/A
|
|
1
|
Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only.
|
2
|
Geographic segment data reflects unit case volume growth for all bottlers in the applicable geographic areas, both consolidated and unconsolidated.
|
|
|
|
|
|
|
|
Percent Change
|
||||||||||
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2011 vs. 2010
|
|
2010 vs. 2009
|
|||||
(In millions except percentages and per share data)
|
|
|
|
|
|
|
|
|
|
||||||||
NET OPERATING REVENUES
|
$
|
46,542
|
|
|
$
|
35,119
|
|
|
$
|
30,990
|
|
|
33
|
%
|
|
13
|
%
|
Cost of goods sold
|
18,216
|
|
|
12,693
|
|
|
11,088
|
|
|
44
|
|
|
14
|
|
|||
GROSS PROFIT
|
28,326
|
|
|
22,426
|
|
|
19,902
|
|
|
26
|
|
|
13
|
|
|||
GROSS PROFIT MARGIN
|
60.9
|
%
|
|
63.9
|
%
|
|
64.2
|
%
|
|
|
|
|
|
|
|||
Selling, general and administrative expenses
|
17,440
|
|
|
13,158
|
|
|
11,358
|
|
|
33
|
|
|
16
|
|
|||
Other operating charges
|
732
|
|
|
819
|
|
|
313
|
|
|
*
|
|
|
*
|
|
|||
OPERATING INCOME
|
10,154
|
|
|
8,449
|
|
|
8,231
|
|
|
20
|
|
|
3
|
|
|||
OPERATING MARGIN
|
21.8
|
%
|
|
24.1
|
%
|
|
26.6
|
%
|
|
|
|
|
|
|
|||
Interest income
|
483
|
|
|
317
|
|
|
249
|
|
|
52
|
|
|
27
|
|
|||
Interest expense
|
417
|
|
|
733
|
|
|
355
|
|
|
(43
|
)
|
|
106
|
|
|||
Equity income (loss) — net
|
690
|
|
|
1,025
|
|
|
781
|
|
|
(33
|
)
|
|
31
|
|
|||
Other income (loss) — net
|
529
|
|
|
5,185
|
|
|
40
|
|
|
*
|
|
|
*
|
|
|||
INCOME BEFORE INCOME TAXES
|
11,439
|
|
|
14,243
|
|
|
8,946
|
|
|
(20
|
)
|
|
59
|
|
|||
Income taxes
|
2,805
|
|
|
2,384
|
|
|
2,040
|
|
|
18
|
|
|
17
|
|
|||
Effective tax rate
|
24.5
|
%
|
|
16.7
|
%
|
|
22.8
|
%
|
|
|
|
|
|
|
|||
CONSOLIDATED NET INCOME
|
8,634
|
|
|
11,859
|
|
|
6,906
|
|
|
(27
|
)
|
|
72
|
|
|||
Less: Net income attributable to noncontrolling interests
|
62
|
|
|
50
|
|
|
82
|
|
|
24
|
|
|
(39
|
)
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
8,572
|
|
|
$
|
11,809
|
|
|
$
|
6,824
|
|
|
(27
|
)%
|
|
73
|
%
|
BASIC NET INCOME PER SHARE
1
|
$
|
3.75
|
|
|
$
|
5.12
|
|
|
$
|
2.95
|
|
|
(27
|
)%
|
|
74
|
%
|
DILUTED NET INCOME PER SHARE
1
|
$
|
3.69
|
|
|
$
|
5.06
|
|
|
$
|
2.93
|
|
|
(27
|
)%
|
|
73
|
%
|
*
|
Calculation is not meaningful.
|
1
|
Basic net income per share and diluted net income per share are calculated based on net income attributable to shareowners of The Coca-Cola Company.
|
|
Percent Change 2011 vs. 2010
|
|||||||||||||
|
Volume
2
|
|
|
Structural Changes
|
|
|
Price, Product &
Geographic Mix
|
|
|
Currency
Fluctuations
|
|
|
Total
|
|
International (including Bottling Investments)
1
|
5
|
%
|
|
(3
|
)%
|
|
2
|
%
|
|
4
|
%
|
|
8
|
%
|
Eurasia & Africa
|
5
|
%
|
|
—
|
%
|
|
7
|
%
|
|
(1
|
)%
|
|
11
|
%
|
Europe
|
1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
4
|
|
Latin America
|
5
|
|
|
(2
|
)
|
|
7
|
|
|
4
|
|
|
14
|
|
Pacific
|
6
|
|
|
—
|
|
|
(2
|
)
|
|
7
|
|
|
11
|
|
Bottling Investments
|
4
|
|
|
(8
|
)
|
|
3
|
|
|
4
|
|
|
3
|
|
1
|
Represents the total change in net operating revenues for Bottling Investments and each of our geographic operating segments, excluding North America.
|
2
|
Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating segments (expressed in equivalent unit cases). For our Bottling Investments operating segment, this represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume for the Bottling Investments operating segment after considering the impact of structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.
|
•
|
Our international and Bottling Investments operating segments' results were unfavorably impacted by geographic mix as a result of growth in our emerging and developing markets. The revenue per unit sold in these markets is generally less than in developed markets;
|
•
|
Eurasia and Africa was favorably impacted by price mix as a result of pricing increases in a number of key markets;
|
•
|
Europe's price mix was even, including a negative 1 percent impact as a result of a change in our concentrate pricing strategy in Germany with our consolidated bottler;
|
•
|
Latin America was favorably impacted by price mix as a result of pricing increases in a number of key markets. Also, still beverages grew faster than sparkling beverages in Latin America, bolstered by the strong performance of Del Valle;
|
•
|
Pacific was unfavorably impacted by geographic mix due to the growth in emerging and developing markets. The revenue per unit sold in these markets is generally less than in developed markets;
|
•
|
Pacific was unfavorably impacted by channel and product mix due to the earthquake and tsunami that devastated
|
•
|
Bottling Investments was favorably impacted by price mix as a result of pricing increases in a number of key markets, including China, India and Latin America.
|
|
Percent Change 2010 vs. 2009
|
|||||||||||||||
|
|
|
Structural Changes
|
|
|
|
|
|
|
|||||||
|
Volume
1
|
|
|
Volume
2
|
|
Other
|
|
|
Price, Product &
Geographic Mix
|
|
|
Currency
Fluctuations
|
|
|
Total
|
|
Consolidated
|
5
|
%
|
|
—
|
%
|
5
|
%
|
|
1
|
%
|
|
2
|
%
|
|
13
|
%
|
Eurasia & Africa
|
12
|
%
|
|
—
|
%
|
—
|
%
|
|
(2
|
)%
|
|
6
|
%
|
|
16
|
%
|
Europe
|
—
|
|
|
—
|
|
2
|
|
|
1
|
|
|
(2
|
)
|
|
1
|
|
Latin America
|
7
|
|
|
—
|
|
(13
|
)
|
|
9
|
|
|
3
|
|
|
6
|
|
North America
|
1
|
|
|
1
|
|
32
|
|
|
—
|
|
|
1
|
|
|
35
|
|
Pacific
|
6
|
|
|
—
|
|
1
|
|
|
(5
|
)
|
|
6
|
|
|
8
|
|
Bottling Investments
|
10
|
|
|
(11
|
)
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
Corporate
|
*
|
|
|
*
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
*
|
Calculation is not meaningful.
|
1
|
Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating segments, excluding the impact of volume associated with new license agreements (expressed in equivalent unit cases). For our Bottling Investments operating segment, this represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume for the Bottling Investments operating segment after considering the impact of structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.
|
2
|
Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume related to new license agreements for our geographic operating segments. For our Bottling Investments operating segment, this represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume for the Bottling Investments operating segment due to structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.
|
•
|
Consolidated results were unfavorably impacted by geographic mix as a result of growth in our emerging and developing markets. The growth in our emerging and developing markets resulted in unfavorable geographic mix due to the fact that the revenue per unit sold in these markets is generally less than in developed markets;
|
•
|
Eurasia and Africa was unfavorably impacted by negative geographic mix due to the growth in emerging and developing markets such as India and Russia. The revenue per unit sold in these markets is generally less than in developed markets;
|
•
|
Latin America was favorably impacted by pricing in a number of our key markets and the impact of still beverages growing faster than sparkling beverages; and
|
•
|
Pacific was negatively impacted by unfavorable geographic mix due to the growth in emerging and developing markets such as China and the Philippines. The revenue per unit sold in these markets is generally less than in developed markets.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Eurasia & Africa
|
5.8
|
%
|
|
6.9
|
%
|
|
6.4
|
%
|
Europe
|
10.3
|
|
|
12.6
|
|
|
13.9
|
|
Latin America
|
9.4
|
|
|
11.0
|
|
|
12.0
|
|
North America
|
44.2
|
|
|
31.7
|
|
|
26.4
|
|
Pacific
|
11.7
|
|
|
14.1
|
|
|
14.6
|
|
Bottling Investments
|
18.3
|
|
|
23.4
|
|
|
26.4
|
|
Corporate
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Stock-based compensation expense
|
$
|
354
|
|
|
$
|
380
|
|
|
$
|
241
|
|
Advertising expenses
|
3,256
|
|
|
2,917
|
|
|
2,791
|
|
|||
Bottling and distribution expenses
|
8,501
|
|
|
3,902
|
|
|
2,627
|
|
|||
Other operating expenses
|
5,329
|
|
|
5,959
|
|
|
5,699
|
|
|||
Selling, general and administrative expenses
|
$
|
17,440
|
|
|
$
|
13,158
|
|
|
$
|
11,358
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Eurasia & Africa
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
4
|
|
Europe
|
25
|
|
|
50
|
|
|
7
|
|
|||
Latin America
|
4
|
|
|
—
|
|
|
—
|
|
|||
North America
|
374
|
|
|
133
|
|
|
31
|
|
|||
Pacific
|
54
|
|
|
22
|
|
|
1
|
|
|||
Bottling Investments
|
89
|
|
|
122
|
|
|
141
|
|
|||
Corporate
|
174
|
|
|
485
|
|
|
129
|
|
|||
Total
|
$
|
732
|
|
|
$
|
819
|
|
|
$
|
313
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Eurasia & Africa
|
10.8
|
%
|
|
11.6
|
%
|
|
9.8
|
%
|
Europe
|
30.4
|
|
|
35.2
|
|
|
35.8
|
|
Latin America
|
27.7
|
|
|
28.5
|
|
|
24.8
|
|
North America
|
22.8
|
|
|
18.0
|
|
|
20.7
|
|
Pacific
|
21.2
|
|
|
24.2
|
|
|
22.9
|
|
Bottling Investments
|
2.2
|
|
|
2.7
|
|
|
2.2
|
|
Corporate
|
(15.1
|
)
|
|
(20.2
|
)
|
|
(16.2
|
)
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Consolidated
|
21.8
|
%
|
|
24.1
|
%
|
|
26.6
|
%
|
Eurasia & Africa
|
40.6
|
%
|
|
40.4
|
%
|
|
41.0
|
%
|
Europe
|
64.7
|
|
|
67.3
|
|
|
68.4
|
|
Latin America
|
63.9
|
|
|
62.0
|
|
|
55.2
|
|
North America
|
11.3
|
|
|
13.6
|
|
|
20.7
|
|
Pacific
|
39.4
|
|
|
41.4
|
|
|
41.6
|
|
Bottling Investments
|
2.6
|
|
|
2.8
|
|
|
2.2
|
|
Corporate
|
*
|
|
|
*
|
|
|
*
|
|
*
|
Calculation is not meaningful.
|
•
|
In 2011, foreign currency exchange rates favorably impacted consolidated operating income by 4 percent. The favorable impact of changes in foreign currency exchange rates was primarily due to a weaker U.S. dollar compared to most foreign currencies, including the euro, Japanese yen, Mexican peso, Brazilian real, British pound, South African rand and Australian dollar, which had a favorable impact on the Eurasia and Africa, Europe, Latin America, Pacific and Bottling Investments operating segments. Refer to the heading "Liquidity, Capital Resources and Financial Position — Foreign Exchange."
|
•
|
In 2011, operating income was favorably impacted by fluctuations in foreign currency exchange rates by 2 percent for Europe, 4 percent for Latin America, 1 percent for North America, 7 percent for Pacific, 7 percent for Bottling Investments and 1 percent for Corporate. Operating income was unfavorably impacted by fluctuations in foreign currency exchange rates by 1 percent for Eurasia and Africa.
|
•
|
In 2011, our consolidated operating margin was favorably impacted by geographic mix. The favorable geographic mix was primarily due to many of our emerging markets recovering from the global recession at a quicker pace than our developed markets. Although this shift in geographic mix has a negative impact on net operating revenues, it generally has a favorable impact on our gross profit margin and operating margin due to the correlated impact it has on our product mix. The product mix in the majority of our emerging and developing markets is more heavily skewed toward products in our sparkling beverage portfolio, which generally yield a higher gross profit margin compared to our still beverages and finished products. Consequently, the shift in our geographic mix is driving favorable product mix from a global perspective.
|
•
|
In 2011, operating income and operating margin for Europe were unfavorably impacted by a change in our concentrate pricing strategy in Germany with our consolidated bottler.
|
•
|
In 2011, operating income and operating margin for Latin America were favorably impacted by volume growth across all of the group's business units and pricing increases in key markets, partially offset by continued investments in the business.
|
•
|
In 2011, the operating margin for North America was unfavorably impacted by the full year impact of the Company's acquisition of CCE's North American business. Generally, bottling and finished products operations have higher net operating revenues but lower operating margins when compared to concentrate and syrup operations. The impact of this transaction was also reflected in the Company's operating margin. Refer to the heading "Structural Changes, Acquired Brands and New License Agreements" above.
|
•
|
In 2011, operating income and operating margin for North America were unfavorably impacted by higher commodity costs in the segment's finished products businesses.
|
•
|
In 2011, operating income was reduced by $19 million for North America due to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business.
|
•
|
In 2011, operating income and operating margin for Pacific and North America were unfavorably impacted as a result of the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. Operating income was reduced by $82 million and $2 million for Pacific and North America, respectively. The charges were primarily related to the Company's charitable donations in support of relief and rebuilding efforts in Japan as well as funds we provided certain bottling partners in the affected regions.
|
•
|
In 2011, operating income was reduced by $10 million for Corporate due to charges associated with the floods in Thailand that impacted the Company's supply chain operations in the region.
|
•
|
In 2011, operating income was reduced by $12 million for Eurasia and Africa, $25 million for Europe, $4 million for Latin America, $374 million for North America, $4 million for Pacific, $89 million for Bottling Investments and $164 million for Corporate, primarily due to the Company’s ongoing productivity, integration and restructuring initiatives as well as costs associated with the merger of Arca and Contal.
|
•
|
In 2010, foreign currency exchange rates favorably impacted consolidated operating income by 3 percent. The favorable impact of changes in foreign currency exchange rates was primarily due to a weaker U.S. dollar compared to most foreign currencies, including the Japanese yen, Mexican peso, Brazilian real, South African rand and Australian dollar, which had a favorable impact on the Eurasia and Africa, Latin America, Pacific and Bottling Investments operating segments. The favorable impact of a weaker U.S. dollar compared to the aforementioned currencies was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the euro and British pound, which had an unfavorable impact on the Europe and Bottling Investments operating segments. Refer to the heading "Liquidity, Capital Resources and Financial Position — Foreign Exchange" below.
|
•
|
In 2010, operating income was favorably impacted by fluctuations in foreign currency exchange rates by 7 percent for Eurasia and Africa, 3 percent for Latin America, 8 percent for Pacific and 9 percent for Bottling Investments. Operating income was unfavorably impacted by fluctuations in foreign currency exchange rates by 1 percent for Europe. Fluctuations in foreign currency exchange rates had a nominal impact on operating income for North America and Corporate.
|
•
|
In 2010, our consolidated operating margin was favorably impacted by geographic mix. The favorable geographic mix was primarily due to many of our emerging markets recovering from the global recession at a quicker pace than our developed markets. Although this shift in geographic mix has a negative impact on net operating revenues, it generally has a favorable impact on our gross profit margin and operating margin due to the correlated impact it has on our product mix. The product mix in the majority of our emerging and developing markets is more heavily skewed toward products in our sparkling beverage portfolio, which generally yield a higher gross profit margin compared to our still beverages and finished products.
|
•
|
In 2010, our consolidated operating margin was favorably impacted by the deconsolidation of certain entities as a result of the Company's adoption of new accounting guidance issued by the FASB. These entities are primarily bottling operations and have been accounted for under the equity method of accounting since they were deconsolidated on January 1, 2010. Generally, bottling and finished products operations produce higher net revenues but lower operating margins compared to concentrate and syrup operations. The majority of the deconsolidated entities had previously been included in our Bottling Investments operating segment.
|
•
|
In 2010, the operating margin for the Latin America operating segment was favorably impacted by the sale of 50 percent of our ownership interest in Leão Junior, resulting in its deconsolidation, as well as the deconsolidation of certain entities as a result of the Company's adoption of new accounting guidance issued by the FASB. Price and product mix also favorably impacted Latin America's operating income and operating margin during the year.
|
•
|
In 2010, the operating margin for the North America operating segment was unfavorably impacted by the Company's acquisition of CCE's North American business. Generally, bottling and finished products operations have higher net operating revenues but lower operating margins when compared to concentrate and syrup operations. Refer to the heading "Structural Changes, Acquired Brands and New License Agreements" above.
|
•
|
In 2010, operating income for the North America operating segment was reduced by $74 million due to the acceleration of expense associated with certain share-based replacement awards issued in connection with our acquisition of CCE's North American business. Refer to Note 2 of Notes to Consolidated Financial Statements.
|
•
|
In 2010, operating income for the North America operating segment was negatively impacted by $235 million, primarily due to the elimination of gross profit in inventory on intercompany sales and an inventory fair value adjustment as a result of our acquisition of CCE's North American business. Prior to the acquisition, we recognized the profit associated with concentrate sales when the concentrate was sold to CCE, excluding the portion that was deemed to be intercompany due to our previous ownership interest in CCE. However, subsequent to the acquisition, the Company does not recognize the profit associated with concentrate sold to CCE's legacy North American business until the finished beverage products made from those concentrates are sold.
|
•
|
In 2010, operating income for the North America operating segment was reduced by $20 million due to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business.
|
•
|
In 2010, operating income was reduced by $7 million for Eurasia and Africa, $50 million for Europe, $133 million for North America, $22 million for Pacific, $122 million for Bottling Investments and $485 million for Corporate, primarily due to the Company's productivity, integration and restructuring initiatives; charitable donations; transaction costs incurred in connection with our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE; and other charges related to bottling activities in Eurasia. Refer to the heading "Other Operating Charges" above.
|
•
|
In 2009, operating income was reduced by $4 million for Eurasia and Africa, $7 million for Europe, $31 million for North America, $1 million for Pacific, $141 million for Bottling Investments and $129 million for Corporate, primarily as a result of restructuring costs, the Company's ongoing productivity initiatives and asset impairments. Refer to the heading "Other Operating Charges" above.
|
•
|
$
1,655 million
total principal amount of notes due September 1, 2016, at a fixed interest rate of
1.8 percent
; and
|
•
|
$
1,324 million
total principal amount of notes due September 1, 2021, at a fixed interest rate of
3.3 percent
.
|
•
|
During the first quarter of 2011, the Company repurchased all of our outstanding U.K. pound sterling notes that had a carrying value of $
674 million
;
|
•
|
During the second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
42 million
; and
|
•
|
During the third quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
19 million
.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
Statutory U.S. federal tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
State and local income taxes — net of federal benefit
|
0.9
|
|
|
0.6
|
|
|
0.7
|
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(9.5
|
)
|
1,2.3
|
(5.6
|
)
|
11
|
(11.6
|
)
|
19
|
Equity income or loss
|
(1.4
|
)
|
4
|
(1.9
|
)
|
12
|
(2.3
|
)
|
20
|
CCE transaction
|
—
|
|
|
(12.5
|
)
|
13,14
|
—
|
|
|
Sale of Norwegian and Swedish bottling operations
|
—
|
|
5
|
0.4
|
|
15
|
—
|
|
|
Other operating charges
|
0.3
|
|
6
|
0.4
|
|
16
|
0.6
|
|
21
|
Other — net
|
(0.8
|
)
|
7,8,9,10
|
0.3
|
|
17,18
|
0.4
|
|
22,23
|
Effective tax rate
|
24.5
|
%
|
|
16.7
|
%
|
|
22.8
|
%
|
|
1
|
Includes a tax benefit of $6 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
|
2
|
Includes a zero percent effective tax rate on charges due to the impairment of available-for-sale securities. Refer to Note 3 and Note 17 of Notes to Consolidated Financial Statements.
|
3
|
Includes a tax expense of $299 million (or a 0.7 percent impact on our effective tax rate) related to the net gain recognized as a result of the merger of Arca and Contal, the gain recognized on the sale of our investment in Embonor and gains the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the year at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
4
|
Includes a tax benefit of $7 million (or a 0.1 percent impact on our effective tax rate) related to our proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
5
|
Includes a tax benefit of $2 million related to the finalization of working capital adjustments on the sale of our Norwegian and Swedish bottling operations. Refer to Note 2 and Note 17 of Notes to Consolidated Financial Statements.
|
6
|
Includes a tax benefit of $224 million (or a 0.3 percent impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs incurred in connection with the merger of Arca and Contal, costs associated with the earthquake and tsunami that devastated northern and eastern Japan and costs associated with the flooding in Thailand. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
7
|
Includes a tax benefit of $8 million related to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business.
|
8
|
Includes a tax benefit of $3 million related to net charges we recognized on the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's North American business as well as the early extinguishment of certain other long-term debt. Refer to Note 10 of Notes to Consolidated Financial Statements.
|
9
|
Includes a tax benefit of $14 million on charges due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
10
|
Includes a tax benefit of $2 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions.
|
11
|
Includes tax expense of $265 million (or a 1.9 percent impact on our effective tax rate), primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties.
|
12
|
Includes a tax benefit of $9 million (or a 0.1 percent impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
13
|
Includes a tax benefit of $34 million (or a reduction of 12.5 percent on our effective tax rate) related to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's North American business. The tax benefit reflects the impact of reversing deferred tax liabilities associated with our equity investment in CCE prior to the acquisition. Refer to Note 2 of Notes to Consolidated Financial Statements.
|
14
|
Includes a tax benefit of $99 million related to charges associated with the write-off of preexisting relationships with CCE. Refer to Note 2 of Notes to Consolidated Financial Statements.
|
15
|
Includes a tax expense of $261 million (or a 0.4 percent impact on our effective tax rate) related to the sale of our Norwegian and Swedish bottling operations. Refer to Note 2 of Notes to Consolidated Financial Statements.
|
16
|
Includes a tax benefit of $223 million (or a 0.4 percent impact on our effective tax rate), primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs and charitable contributions. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
17
|
Includes a tax benefit of $114 million (or a 0.5 percent impact on our effective tax rate) related to charges associated with the repurchase of certain long-term debt and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer, the loss related to the remeasurement of our Venezuelan subsidiary's net assets, other-than-temporary impairment charges and a donation of preferred shares in one of our equity method investees. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
18
|
Includes a tax expense of $31 million (or a 0.2 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, and other tax matters in certain domestic jurisdictions.
|
19
|
Includes a tax benefit of $16 million (or a reduction of 0.2 percent on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
|
20
|
Includes a tax benefit of $17 million (or a 0.1 percent impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
21
|
Includes a tax benefit of $16 million (or a 0.6 percent impact on our effective tax rate) related to restructuring charges and asset impairments. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
22
|
Includes a zero percent effective rate (or a reduction of 0.2 percent on our effective tax rate) related to the sale of all or a portion of certain investments. Refer to Note 3 of Notes to Consolidated Financial Statements.
|
23
|
Includes a zero percent effective rate (or a 0.1 percent impact on our effective tax rate) related to an other-than-temporary impairment of a cost method investment. Refer to Note 17 of Notes to Consolidated Financial Statements.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
387
|
|
|
$
|
354
|
|
|
$
|
369
|
|
Increases related to prior period tax positions
|
9
|
|
|
26
|
|
|
49
|
|
|||
Decreases related to prior period tax positions
|
(19
|
)
|
|
(10
|
)
|
|
(28
|
)
|
|||
Increases related to current period tax positions
|
6
|
|
|
33
|
|
|
16
|
|
|||
Decreases related to current period tax positions
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Decreases related to settlements with taxing authorities
|
(5
|
)
|
|
—
|
|
|
(27
|
)
|
|||
Reductions as a result of a lapse of the applicable statute of limitations
|
(46
|
)
|
|
(1
|
)
|
|
(73
|
)
|
|||
Increase related to acquisition of CCE's North American business
|
—
|
|
|
6
|
|
|
—
|
|
|||
Increases (decreases) from effects of foreign currency exchange rates
|
(11
|
)
|
|
(21
|
)
|
|
48
|
|
|||
Ending balance of unrecognized tax benefits
|
$
|
320
|
|
|
$
|
387
|
|
|
$
|
354
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Purchases of short-term investments
|
$
|
(4,057
|
)
|
|
$
|
(4,579
|
)
|
|
$
|
(2,130
|
)
|
Proceeds from disposals of short-term investments
|
5,647
|
|
|
4,032
|
|
|
—
|
|
|||
Acquisitions and investments
|
(977
|
)
|
|
(2,511
|
)
|
|
(300
|
)
|
|||
Purchases of other investments
|
(787
|
)
|
|
(132
|
)
|
|
(22
|
)
|
|||
Proceeds from disposals of bottling companies and other investments
|
562
|
|
|
972
|
|
|
240
|
|
|||
Purchases of property, plant and equipment
|
(2,920
|
)
|
|
(2,215
|
)
|
|
(1,993
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
101
|
|
|
134
|
|
|
104
|
|
|||
Other investing activities
|
(93
|
)
|
|
(106
|
)
|
|
(48
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(2,524
|
)
|
|
$
|
(4,405
|
)
|
|
$
|
(4,149
|
)
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Capital expenditures
|
$
|
2,920
|
|
|
$
|
2,215
|
|
|
$
|
1,993
|
|
Eurasia & Africa
|
2.9
|
%
|
|
2.7
|
%
|
|
3.5
|
%
|
|||
Europe
|
1.3
|
|
|
1.5
|
|
|
3.4
|
|
|||
Latin America
|
3.6
|
|
|
4.2
|
|
|
6.2
|
|
|||
North America
|
46.7
|
|
|
32.1
|
|
|
23.0
|
|
|||
Pacific
|
3.2
|
|
|
4.6
|
|
|
4.6
|
|
|||
Bottling Investments
|
35.6
|
|
|
42.5
|
|
|
41.4
|
|
|||
Corporate
|
6.7
|
|
|
12.4
|
|
|
17.9
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Issuances of debt
|
$
|
27,495
|
|
|
$
|
15,251
|
|
|
$
|
14,689
|
|
Payments of debt
|
(22,530
|
)
|
|
(13,403
|
)
|
|
(12,326
|
)
|
|||
Issuances of stock
|
1,569
|
|
|
1,666
|
|
|
664
|
|
|||
Purchases of stock for treasury
|
(4,513
|
)
|
|
(2,961
|
)
|
|
(1,518
|
)
|
|||
Dividends
|
(4,300
|
)
|
|
(4,068
|
)
|
|
(3,800
|
)
|
|||
Other financing activities
|
45
|
|
|
50
|
|
|
(2
|
)
|
|||
Net cash provided by (used in) financing activities
|
$
|
(2,234
|
)
|
|
$
|
(3,465
|
)
|
|
$
|
(2,293
|
)
|
•
|
$
1,655 million
total principal amount of notes due September 1, 2016, at a fixed interest rate of
1.8 percent
; and
|
•
|
$
1,324 million
total principal amount of notes due September 1, 2021, at a fixed interest rate of
3.3 percent
.
|
•
|
During the first quarter of 2011, the Company repurchased all of our outstanding U.K. pound sterling notes that had a carrying value of $
674 million
;
|
•
|
During the second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
42 million
; and
|
•
|
During the third quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
19 million
.
|
•
|
$1,250 million total principal notes due May 15, 2012, at a variable interest rate of 3 month LIBOR plus 0.05 percent;
|
•
|
$1,250 million total principal notes due November 15, 2013, at a fixed interest rate of 0.75 percent;
|
•
|
$1,000 million total principal notes due November 15, 2015, at a fixed interest rate of 1.5 percent; and
|
•
|
$1,000 million total principal notes due November 15, 2020, at a fixed interest rate of 3.15 percent.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Number of shares repurchased (in millions)
|
63
|
|
|
49
|
|
|
26
|
|
|||
Average price per share
|
$
|
67.46
|
|
|
$
|
63.85
|
|
|
$
|
57.09
|
|
•
|
any obligation under certain guarantee contracts;
|
•
|
a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets;
|
•
|
any obligation under certain derivative instruments; and
|
•
|
any obligation arising out of a material variable interest held by the registrant in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and development services with the registrant.
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
|
2012
|
|
|
2013-2014
|
|
|
2015-2016
|
|
|
2017 and
Thereafter
|
|
|||||
Short-term loans and notes payable:
1
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper borrowings
|
$
|
12,135
|
|
|
$
|
12,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Lines of credit and other short-term borrowings
|
736
|
|
|
736
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Current maturities of long-term debt
2
|
2,038
|
|
|
2,038
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt, net of current maturities
2
|
12,941
|
|
|
—
|
|
|
3,107
|
|
|
3,076
|
|
|
6,758
|
|
|||||
Estimated interest payments
3
|
5,007
|
|
|
431
|
|
|
784
|
|
|
633
|
|
|
3,159
|
|
|||||
Accrued income taxes
4
|
362
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchase obligations
5
|
13,357
|
|
|
9,741
|
|
|
1,611
|
|
|
1,035
|
|
|
970
|
|
|||||
Marketing obligations
6
|
4,389
|
|
|
2,600
|
|
|
736
|
|
|
421
|
|
|
632
|
|
|||||
Lease obligations
|
1,213
|
|
|
282
|
|
|
387
|
|
|
226
|
|
|
318
|
|
|||||
Total contractual obligations
4
|
$
|
52,178
|
|
|
$
|
28,325
|
|
|
$
|
6,625
|
|
|
$
|
5,391
|
|
|
$
|
11,837
|
|
1
|
Refer to Note 10 of Notes to Consolidated Financial Statements for information regarding short-term loans and notes payable. Upon payment of outstanding commercial paper, we typically issue new commercial paper. Lines of credit and other short-term borrowings are expected to fluctuate depending upon current liquidity needs, especially at international subsidiaries.
|
2
|
Refer to Note 10 of Notes to Consolidated Financial Statements for information regarding long-term debt. We will consider several alternatives to settle this long-term debt, including the use of cash flows from operating activities, issuance of commercial paper or issuance of other long-term debt.
|
3
|
We calculated estimated interest payments for our long-term fixed-rate debt based on the applicable rates and payment dates. We typically expect to settle such interest payments with cash flows from operating activities and/or short-term borrowings.
|
4
|
Refer to Note 14 of Notes to Consolidated Financial Statements for information regarding income taxes. As of
December 31, 2011
, the noncurrent portion of our income tax liability, including accrued interest and penalties related to unrecognized tax benefits, was $418 million, which was not included in the total above. At this time, the settlement period for the noncurrent portion of our income tax liability cannot be determined. In addition, any payments related to unrecognized tax benefits would be partially offset by reductions in payments in other jurisdictions.
|
5
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including long-term contractual obligations, open purchase orders, accounts payable and certain accrued liabilities. We expect to fund these obligations with cash flows from operating activities.
|
6
|
We expect to fund these marketing obligations with cash flows from operating activities.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
All operating currencies
|
6
|
%
|
|
3
|
%
|
|
(9
|
)%
|
Brazilian real
|
5
|
%
|
|
11
|
%
|
|
(8
|
)%
|
Mexican peso
|
4
|
|
|
6
|
|
|
(24
|
)
|
Australian dollar
|
14
|
|
|
13
|
|
|
(8
|
)
|
South African rand
|
1
|
|
|
11
|
|
|
(1
|
)
|
British pound
|
4
|
|
|
(2
|
)
|
|
(18
|
)
|
Euro
|
7
|
|
|
(5
|
)
|
|
(8
|
)
|
Japanese yen
|
10
|
|
|
6
|
|
|
9
|
|
December 31,
|
2011
|
|
|
2010
|
|
|
Increase (Decrease)
|
|
|
Percent Change
|
|
|||
Cash and cash equivalents
|
$
|
12,803
|
|
|
$
|
8,517
|
|
|
$
|
4,286
|
|
|
50
|
%
|
Short-term investments
|
1,088
|
|
|
2,682
|
|
|
(1,594
|
)
|
|
(59
|
)
|
|||
Marketable securities
|
144
|
|
|
138
|
|
|
6
|
|
|
4
|
|
|||
Trade accounts receivable — net
|
4,920
|
|
|
4,430
|
|
|
490
|
|
|
11
|
|
|||
Inventories
|
3,092
|
|
|
2,650
|
|
|
442
|
|
|
17
|
|
|||
Prepaid expenses and other assets
|
3,450
|
|
|
3,162
|
|
|
288
|
|
|
9
|
|
|||
Equity method investments
|
7,233
|
|
|
6,954
|
|
|
279
|
|
|
4
|
|
|||
Other investments, principally bottling companies
|
1,141
|
|
|
631
|
|
|
510
|
|
|
81
|
|
|||
Other assets
|
3,495
|
|
|
2,121
|
|
|
1,374
|
|
|
65
|
|
|||
Property, plant and equipment — net
|
14,939
|
|
|
14,727
|
|
|
212
|
|
|
1
|
|
|||
Trademarks with indefinite lives
|
6,430
|
|
|
6,356
|
|
|
74
|
|
|
1
|
|
|||
Bottlers' franchise rights with indefinite lives
|
7,770
|
|
|
7,511
|
|
|
259
|
|
|
3
|
|
|||
Goodwill
|
12,219
|
|
|
11,665
|
|
|
554
|
|
|
5
|
|
|||
Other intangible assets
|
1,250
|
|
|
1,377
|
|
|
(127
|
)
|
|
(9
|
)
|
|||
Total assets
|
$
|
79,974
|
|
|
$
|
72,921
|
|
|
$
|
7,053
|
|
|
10
|
%
|
Accounts payable and accrued expenses
|
$
|
9,009
|
|
|
$
|
8,859
|
|
|
$
|
150
|
|
|
2
|
%
|
Loans and notes payable
|
12,871
|
|
|
8,100
|
|
|
4,771
|
|
|
59
|
|
|||
Current maturities of long-term debt
|
2,041
|
|
|
1,276
|
|
|
765
|
|
|
60
|
|
|||
Accrued income taxes
|
362
|
|
|
273
|
|
|
89
|
|
|
33
|
|
|||
Long-term debt
|
13,656
|
|
|
14,041
|
|
|
(385
|
)
|
|
(3
|
)
|
|||
Other liabilities
|
5,420
|
|
|
4,794
|
|
|
626
|
|
|
13
|
|
|||
Deferred income taxes
|
4,694
|
|
|
4,261
|
|
|
433
|
|
|
10
|
|
|||
Total liabilities
|
$
|
48,053
|
|
|
$
|
41,604
|
|
|
$
|
6,449
|
|
|
16
|
%
|
Net assets
|
$
|
31,921
|
|
|
$
|
31,317
|
|
|
$
|
604
|
|
1
|
2
|
%
|
1
|
Includes a decrease in net assets of $692 million resulting from translation adjustments in various balance sheet accounts.
|
•
|
Cash and cash equivalents increased $4,286 million, or 50 percent, primarily due to increased receipts from customers and proceeds from the net issuances of commercial paper. A majority of the Company's consolidated cash and cash equivalents balance is held by our foreign subsidiaries.
|
•
|
Short-term investments decreased $1,594 million, or 59 percent, primarily due to the maturity of time deposits.
|
•
|
Other investments, principally bottling companies increased $510 million, or 81 percent, primarily due to the merger of Arca and Contal. Refer to Note 17 of Notes to Consolidated Financial Statements for additional information related to the merger.
|
•
|
Other assets increased $1,374 million, or 65 percent, primarily due to long-term investments made by our captive insurance company, the fair value of interest rate swap agreements, and the impact of certain pension contributions. These pension contributions resulted in certain plans being in a net asset position.
|
•
|
Goodwill increased $554 million, or 5 percent, primarily due to our acquisitions of Great Plains and Honest Tea in addition to purchase accounting adjustments related to our acquisition of CCE's North American business.
|
•
|
Loans and notes payable increased $4,771 million, or 59 percent, primarily due to an increase in our commercial paper balance.
|
•
|
Other liabilities increased $626 million, or 13 percent, primarily due to the decrease in the weighted-average discount rate used to calculate the Company's pension benefit obligation.
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
(In millions except per share data)
|
|
|
|
|
|
||||||
NET OPERATING REVENUES
|
$
|
46,542
|
|
|
$
|
35,119
|
|
|
$
|
30,990
|
|
Cost of goods sold
|
18,216
|
|
|
12,693
|
|
|
11,088
|
|
|||
GROSS PROFIT
|
28,326
|
|
|
22,426
|
|
|
19,902
|
|
|||
Selling, general and administrative expenses
|
17,440
|
|
|
13,158
|
|
|
11,358
|
|
|||
Other operating charges
|
732
|
|
|
819
|
|
|
313
|
|
|||
OPERATING INCOME
|
10,154
|
|
|
8,449
|
|
|
8,231
|
|
|||
Interest income
|
483
|
|
|
317
|
|
|
249
|
|
|||
Interest expense
|
417
|
|
|
733
|
|
|
355
|
|
|||
Equity income (loss) — net
|
690
|
|
|
1,025
|
|
|
781
|
|
|||
Other income (loss) — net
|
529
|
|
|
5,185
|
|
|
40
|
|
|||
INCOME BEFORE INCOME TAXES
|
11,439
|
|
|
14,243
|
|
|
8,946
|
|
|||
Income taxes
|
2,805
|
|
|
2,384
|
|
|
2,040
|
|
|||
CONSOLIDATED NET INCOME
|
8,634
|
|
|
11,859
|
|
|
6,906
|
|
|||
Less: Net income attributable to noncontrolling interests
|
62
|
|
|
50
|
|
|
82
|
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
8,572
|
|
|
$
|
11,809
|
|
|
$
|
6,824
|
|
BASIC NET INCOME PER SHARE
1
|
$
|
3.75
|
|
|
$
|
5.12
|
|
|
$
|
2.95
|
|
DILUTED NET INCOME PER SHARE
1
|
$
|
3.69
|
|
|
$
|
5.06
|
|
|
$
|
2.93
|
|
AVERAGE SHARES OUTSTANDING
|
2,284
|
|
|
2,308
|
|
|
2,314
|
|
|||
Effect of dilutive securities
|
39
|
|
|
25
|
|
|
15
|
|
|||
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION
|
2,323
|
|
|
2,333
|
|
|
2,329
|
|
1
|
Basic net income per share and diluted net income per share are calculated based on net income attributable to shareowners of
|
December 31,
|
2011
|
|
|
2010
|
|
||
(In millions except par value)
|
|
|
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
12,803
|
|
|
$
|
8,517
|
|
Short-term investments
|
1,088
|
|
|
2,682
|
|
||
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
|
13,891
|
|
|
11,199
|
|
||
Marketable securities
|
144
|
|
|
138
|
|
||
Trade accounts receivable, less allowances of $83 and $48, respectively
|
4,920
|
|
|
4,430
|
|
||
Inventories
|
3,092
|
|
|
2,650
|
|
||
Prepaid expenses and other assets
|
3,450
|
|
|
3,162
|
|
||
TOTAL CURRENT ASSETS
|
25,497
|
|
|
21,579
|
|
||
EQUITY METHOD INVESTMENTS
|
7,233
|
|
|
6,954
|
|
||
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES
|
1,141
|
|
|
631
|
|
||
OTHER ASSETS
|
3,495
|
|
|
2,121
|
|
||
PROPERTY, PLANT AND EQUIPMENT — net
|
14,939
|
|
|
14,727
|
|
||
TRADEMARKS WITH INDEFINITE LIVES
|
6,430
|
|
|
6,356
|
|
||
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES
|
7,770
|
|
|
7,511
|
|
||
GOODWILL
|
12,219
|
|
|
11,665
|
|
||
OTHER INTANGIBLE ASSETS
|
1,250
|
|
|
1,377
|
|
||
TOTAL ASSETS
|
$
|
79,974
|
|
|
$
|
72,921
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
9,009
|
|
|
$
|
8,859
|
|
Loans and notes payable
|
12,871
|
|
|
8,100
|
|
||
Current maturities of long-term debt
|
2,041
|
|
|
1,276
|
|
||
Accrued income taxes
|
362
|
|
|
273
|
|
||
TOTAL CURRENT LIABILITIES
|
24,283
|
|
|
18,508
|
|
||
LONG-TERM DEBT
|
13,656
|
|
|
14,041
|
|
||
OTHER LIABILITIES
|
5,420
|
|
|
4,794
|
|
||
DEFERRED INCOME TAXES
|
4,694
|
|
|
4,261
|
|
||
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
|
|
|
|
||||
Common stock, $0.25 par value; Authorized — 5,600 shares;
Issued — 3,520 and 3,520 shares, respectively
|
880
|
|
|
880
|
|
||
Capital surplus
|
11,212
|
|
|
10,057
|
|
||
Reinvested earnings
|
53,550
|
|
|
49,278
|
|
||
Accumulated other comprehensive income (loss)
|
(2,703
|
)
|
|
(1,450
|
)
|
||
Treasury stock, at cost — 1,257 and 1,228 shares, respectively
|
(31,304
|
)
|
|
(27,762
|
)
|
||
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
31,635
|
|
|
31,003
|
|
||
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
286
|
|
|
314
|
|
||
TOTAL EQUITY
|
31,921
|
|
|
31,317
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
79,974
|
|
|
$
|
72,921
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
(In millions)
|
|
|
|
|
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Consolidated net income
|
$
|
8,634
|
|
|
$
|
11,859
|
|
|
$
|
6,906
|
|
Depreciation and amortization
|
1,954
|
|
|
1,443
|
|
|
1,236
|
|
|||
Stock-based compensation expense
|
354
|
|
|
380
|
|
|
241
|
|
|||
Deferred income taxes
|
1,028
|
|
|
617
|
|
|
353
|
|
|||
Equity (income) loss — net of dividends
|
(269
|
)
|
|
(671
|
)
|
|
(359
|
)
|
|||
Foreign currency adjustments
|
7
|
|
|
151
|
|
|
61
|
|
|||
Significant (gains) losses on sales of assets — net
|
(220
|
)
|
|
(645
|
)
|
|
(43
|
)
|
|||
Other significant (gains) losses — net
|
—
|
|
|
(4,713
|
)
|
|
—
|
|
|||
Other operating charges
|
214
|
|
|
264
|
|
|
134
|
|
|||
Other items
|
(335
|
)
|
|
477
|
|
|
221
|
|
|||
Net change in operating assets and liabilities
|
(1,893
|
)
|
|
370
|
|
|
(564
|
)
|
|||
Net cash provided by operating activities
|
9,474
|
|
|
9,532
|
|
|
8,186
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Purchases of short-term investments
|
(4,057
|
)
|
|
(4,579
|
)
|
|
(2,130
|
)
|
|||
Proceeds from disposals of short-term investments
|
5,647
|
|
|
4,032
|
|
|
—
|
|
|||
Acquisitions and investments
|
(977
|
)
|
|
(2,511
|
)
|
|
(300
|
)
|
|||
Purchases of other investments
|
(787
|
)
|
|
(132
|
)
|
|
(22
|
)
|
|||
Proceeds from disposals of bottling companies and other investments
|
562
|
|
|
972
|
|
|
240
|
|
|||
Purchases of property, plant and equipment
|
(2,920
|
)
|
|
(2,215
|
)
|
|
(1,993
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
101
|
|
|
134
|
|
|
104
|
|
|||
Other investing activities
|
(93
|
)
|
|
(106
|
)
|
|
(48
|
)
|
|||
Net cash provided by (used in) investing activities
|
(2,524
|
)
|
|
(4,405
|
)
|
|
(4,149
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Issuances of debt
|
27,495
|
|
|
15,251
|
|
|
14,689
|
|
|||
Payments of debt
|
(22,530
|
)
|
|
(13,403
|
)
|
|
(12,326
|
)
|
|||
Issuances of stock
|
1,569
|
|
|
1,666
|
|
|
664
|
|
|||
Purchases of stock for treasury
|
(4,513
|
)
|
|
(2,961
|
)
|
|
(1,518
|
)
|
|||
Dividends
|
(4,300
|
)
|
|
(4,068
|
)
|
|
(3,800
|
)
|
|||
Other financing activities
|
45
|
|
|
50
|
|
|
(2
|
)
|
|||
Net cash provided by (used in) financing activities
|
(2,234
|
)
|
|
(3,465
|
)
|
|
(2,293
|
)
|
|||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS
|
(430
|
)
|
|
(166
|
)
|
|
576
|
|
|||
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
||||||
Net increase (decrease) during the year
|
4,286
|
|
|
1,496
|
|
|
2,320
|
|
|||
Balance at beginning of year
|
8,517
|
|
|
7,021
|
|
|
4,701
|
|
|||
Balance at end of year
|
$
|
12,803
|
|
|
$
|
8,517
|
|
|
$
|
7,021
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
(In millions except per share data)
|
|
|
|
|
|
||||||
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
|
|
|
|
|
||||||
NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
||||||
Balance at beginning of year
|
2,292
|
|
|
2,303
|
|
|
2,312
|
|
|||
Purchases of treasury stock
|
(63
|
)
|
|
(49
|
)
|
|
(26
|
)
|
|||
Treasury stock issued to employees related to stock compensation plans
|
34
|
|
|
38
|
|
|
17
|
|
|||
Balance at end of year
|
2,263
|
|
|
2,292
|
|
|
2,303
|
|
|||
COMMON STOCK
|
$
|
880
|
|
|
$
|
880
|
|
|
$
|
880
|
|
CAPITAL SURPLUS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
10,057
|
|
|
8,537
|
|
|
7,966
|
|
|||
Stock issued to employees related to stock compensation plans
|
724
|
|
|
855
|
|
|
339
|
|
|||
Replacement share-based awards issued in connection with an acquisition
|
—
|
|
|
237
|
|
|
—
|
|
|||
Tax benefit (charge) from employees' stock option and restricted stock plans
|
79
|
|
|
48
|
|
|
(6
|
)
|
|||
Stock-based compensation
|
354
|
|
|
380
|
|
|
238
|
|
|||
Other activities
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at end of year
|
11,212
|
|
|
10,057
|
|
|
8,537
|
|
|||
REINVESTED EARNINGS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
49,278
|
|
|
41,537
|
|
|
38,513
|
|
|||
Net income attributable to shareowners of The Coca-Cola Company
|
8,572
|
|
|
11,809
|
|
|
6,824
|
|
|||
Dividends (per share — $1.88, $1.76 and $1.64 in 2011, 2010 and 2009, respectively)
|
(4,300
|
)
|
|
(4,068
|
)
|
|
(3,800
|
)
|
|||
Balance at end of year
|
53,550
|
|
|
49,278
|
|
|
41,537
|
|
|||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(1,450
|
)
|
|
(757
|
)
|
|
(2,674
|
)
|
|||
Net foreign currency translation adjustment
|
(640
|
)
|
|
(935
|
)
|
|
1,824
|
|
|||
Net gain (loss) on derivatives
|
145
|
|
|
(120
|
)
|
|
34
|
|
|||
Net change in unrealized gain on available-for-sale securities
|
(7
|
)
|
|
102
|
|
|
(52
|
)
|
|||
Net change in pension and other benefit liabilities
|
(751
|
)
|
|
260
|
|
|
111
|
|
|||
Net other comprehensive income (loss)
|
(1,253
|
)
|
|
(693
|
)
|
|
1,917
|
|
|||
Balance at end of year
|
(2,703
|
)
|
|
(1,450
|
)
|
|
(757
|
)
|
|||
TREASURY STOCK
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(27,762
|
)
|
|
(25,398
|
)
|
|
(24,213
|
)
|
|||
Stock issued to employees related to stock compensation plans
|
830
|
|
|
824
|
|
|
333
|
|
|||
Purchases of treasury stock
|
(4,372
|
)
|
|
(3,188
|
)
|
|
(1,518
|
)
|
|||
Balance at end of year
|
(31,304
|
)
|
|
(27,762
|
)
|
|
(25,398
|
)
|
|||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
$
|
31,635
|
|
|
$
|
31,003
|
|
|
$
|
24,799
|
|
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
314
|
|
|
$
|
547
|
|
|
$
|
390
|
|
Net income attributable to noncontrolling interests
|
62
|
|
|
50
|
|
|
82
|
|
|||
Net foreign currency translation adjustment
|
(52
|
)
|
|
(12
|
)
|
|
49
|
|
|||
Dividends paid to noncontrolling interests
|
(38
|
)
|
|
(32
|
)
|
|
(14
|
)
|
|||
Contributions by noncontrolling interests
|
—
|
|
|
1
|
|
|
40
|
|
|||
Increase due to business combinations
|
—
|
|
|
13
|
|
|
—
|
|
|||
Deconsolidation of certain variable interest entities
|
—
|
|
|
(253
|
)
|
|
—
|
|
|||
TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
$
|
286
|
|
|
$
|
314
|
|
|
$
|
547
|
|
COMPREHENSIVE INCOME
|
|
|
|
|
|
||||||
Consolidated net income
|
$
|
8,634
|
|
|
$
|
11,859
|
|
|
$
|
6,906
|
|
Consolidated net other comprehensive income (loss)
|
(1,305
|
)
|
|
(705
|
)
|
|
1,966
|
|
|||
CONSOLIDATED COMPREHENSIVE INCOME
|
$
|
7,329
|
|
|
$
|
11,154
|
|
|
$
|
8,872
|
|
•
|
beverage
concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished
sparkling and still beverages (we refer to this part of our business as our "finished products business" or "finished products operations").
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Balance at beginning of year
|
$
|
48
|
|
|
$
|
55
|
|
|
$
|
51
|
|
Net charges to costs and expenses
|
56
|
|
|
21
|
|
|
24
|
|
|||
Write-offs
|
(12
|
)
|
|
(18
|
)
|
|
(22
|
)
|
|||
Other
1
|
(9
|
)
|
|
(10
|
)
|
|
2
|
|
|||
Balance at end of year
|
$
|
83
|
|
|
$
|
48
|
|
|
$
|
55
|
|
1
|
Other includes acquisitions, divestitures and currency translation.
|
|
Number of
Shares, Options
and Units Issued
|
|
|
Fair Value
|
|
|
Performance share units
|
1.6
|
|
|
$
|
192
|
|
Stock options
|
4.8
|
|
|
109
|
|
|
Restricted share units
|
0.8
|
|
|
50
|
|
|
Restricted stock
|
0.2
|
|
|
12
|
|
|
Total
|
7.4
|
|
|
$
|
363
|
|
|
October 2,
2010 |
|
|
Fair value of our equity investment in CCE
1
|
$
|
5,373
|
|
Cash consideration
2
|
1,368
|
|
|
Fair value of share-based payment awards
3
|
154
|
|
|
Total purchase price
|
$
|
6,895
|
|
1
|
Represents the fair value of our
33 percent
ownership interest in the outstanding common stock of CCE based on the closing price of CCE's common stock on the last day the New York Stock Exchange was open prior to the acquisition date. The fair value reflects our indirect ownership interest in both CCE's North American business and European operations.
|
2
|
Primarily related to the debt shortfall and working capital adjustments.
|
3
|
Represents the portion of the total fair value of the replacement awards associated with services rendered prior to the business combination, net of tax.
|
|
Amounts
Recognized as of
Acquisition Date
1
|
|
|
Measurement
Period
Adjustments
2
|
|
|
Amounts
Recognized as of
Acquisition Date
(as Adjusted)
|
|
|||
Cash and cash equivalents
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Marketable securities
|
7
|
|
|
—
|
|
|
7
|
|
|||
Trade accounts receivable
3
|
1,194
|
|
|
—
|
|
|
1,194
|
|
|||
Inventories
|
696
|
|
|
—
|
|
|
696
|
|
|||
Other current assets
4
|
744
|
|
|
(5
|
)
|
|
739
|
|
|||
Property, plant and equipment
4
|
5,385
|
|
|
(682
|
)
|
|
4,703
|
|
|||
Bottlers' franchise rights with indefinite lives
4,5
|
5,100
|
|
|
100
|
|
|
5,200
|
|
|||
Other intangible assets
4,6
|
1,032
|
|
|
45
|
|
|
1,077
|
|
|||
Other noncurrent assets
|
261
|
|
|
—
|
|
|
261
|
|
|||
Total identifiable assets acquired
|
$
|
14,468
|
|
|
$
|
(542
|
)
|
|
$
|
13,926
|
|
Accounts payable and accrued expenses
4
|
1,826
|
|
|
8
|
|
|
1,834
|
|
|||
Loans and notes payable
7
|
266
|
|
|
—
|
|
|
266
|
|
|||
Long-term debt
7
|
9,345
|
|
|
—
|
|
|
9,345
|
|
|||
Pension and other postretirement liabilities
8
|
1,313
|
|
|
—
|
|
|
1,313
|
|
|||
Other noncurrent liabilities
4,9
|
2,603
|
|
|
(293
|
)
|
|
2,310
|
|
|||
Total liabilities assumed
|
$
|
15,353
|
|
|
$
|
(285
|
)
|
|
$
|
15,068
|
|
Net liabilities assumed
|
(885
|
)
|
|
(257
|
)
|
|
(1,142
|
)
|
|||
Goodwill
4,10
|
7,746
|
|
|
304
|
|
|
8,050
|
|
|||
|
$
|
6,861
|
|
|
$
|
47
|
|
|
$
|
6,908
|
|
Less: Noncontrolling interests
|
13
|
|
|
—
|
|
|
13
|
|
|||
Net assets acquired
|
$
|
6,848
|
|
|
$
|
47
|
|
|
$
|
6,895
|
|
1
|
As previously reported in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended
December 31, 2010
.
|
2
|
The measurement period adjustments did not have a significant impact on our consolidated statements of income for the years ended December 31, 2011, and December 31, 2010. In addition, these adjustments did not have a significant impact on our consolidated balance sheet as of December 31, 2010. Therefore, we have not retrospectively adjusted the comparative 2010 financial information.
|
3
|
The gross amount due under receivables we acquired was $
1,226 million
, of which $
32 million
was expected to be uncollectible.
|
4
|
The measurement period adjustments were due to the finalization of appraisals related to intangible assets and certain fixed assets and resulted in the following: a decrease to property, plant and equipment; an increase to franchise rights; and a decrease to noncurrent deferred tax liabilities. The net impact of the measurement period adjustments and the payments made to New CCE that related to the finalization of working capital adjustments resulted in a net increase to goodwill.
|
5
|
Represents reacquired franchise rights that had previously provided CCE with exclusive and perpetual rights to manufacture and/or distribute certain beverages in specified territories. These rights have been determined to have indefinite lives and are not amortized.
|
6
|
Other intangible assets primarily relate to franchise rights that had previously provided CCE with exclusive rights to manufacture and/or distribute certain beverages in specified territories for a finite period of time, and therefore have been classified as definite-lived intangible assets. The estimated fair value of franchise rights with definite lives was $
650 million
as of the acquisition date. These franchise rights will be amortized over a weighted-average life of approximately
eight
years, which is equal to the weighted-average remaining contractual term of the franchise rights. Other intangible assets also include $
380 million
of customer relationships, which will be amortized over approximately
20
years.
|
7
|
Refer to
Note 10
for additional information.
|
8
|
The assumed pension and other postretirement liabilities consisted of benefit obligations of $
3,544 million
and plan assets of $
2,231 million
. Refer to
Note 13
for additional information related to pension and other postretirement plans assumed from CCE.
|
9
|
Primarily relates to deferred tax liabilities recorded on franchise rights. Refer to
Note 14
.
|
10
|
The goodwill recognized as part of this acquisition has been assigned to the North America operating segment. $
170 million
of this goodwill is tax deductible. The goodwill recognized in conjunction with our acquisition of CCE's North American business is primarily related to synergistic value created from having a unified operating system that will strategically position us to better market and distribute our nonalcoholic beverage brands in North America. It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.
|
|
Unaudited
|
|
||||||
Year Ended December 31,
|
2010
|
|
|
2009
|
|
|
||
Net operating revenues
1
|
$
|
43,106
|
|
|
$
|
41,635
|
|
|
Net income attributable to shareowners of The Coca-Cola Company
2
|
6,839
|
|
|
11,767
|
|
3
|
1
|
The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net operating revenues of approximately $
433 million
and $
542 million
in 2010 and 2009, respectively.
|
2
|
The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net income attributable to shareowners of The Coca-Cola Company of approximately $
387 million
in 2010 and an increase of $
294 million
in 2009.
|
3
|
Includes the gain related to the remeasurement of our equity interest in CCE to fair value upon the close of the transaction, the gain on the sale of our Norwegian and Swedish bottling operations, transaction costs and charges related to preexisting relationships. The 2010 pro forma information has been adjusted to exclude the impact of these items in order to present the pro forma information as if the transactions had occurred on January 1, 2009.
|
Trade receivables, less allowances for doubtful accounts
|
$
|
67
|
|
Inventories
|
42
|
|
|
Prepaid expenses and other current assets
|
17
|
|
|
Property, plant and equipment — net
|
315
|
|
|
Intangible assets
|
172
|
|
|
Total assets
1
|
$
|
613
|
|
Accounts payable and accrued expenses
|
$
|
159
|
|
Accrued income taxes
|
10
|
|
|
Deferred income taxes
|
45
|
|
|
Total liabilities
1
|
$
|
214
|
|
1
|
Prior to the divestiture of our Norwegian and Swedish bottling operations, the assets and liabilities of these entities were included in our Bottling Investments operating segment. Refer to
Note 19
.
|
December 31,
|
2011
|
|
|
2010
|
|
||
Marketable securities
|
$
|
138
|
|
|
$
|
132
|
|
Other assets
|
73
|
|
|
77
|
|
||
Total trading securities
|
$
|
211
|
|
|
$
|
209
|
|
|
|
|
Gross
Unrealized
|
|
Estimated
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
2011
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
1,2
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
834
|
|
|
$
|
237
|
|
|
$
|
—
|
|
|
$
|
1,071
|
|
Debt securities
|
332
|
|
|
1
|
|
|
(3
|
)
|
|
330
|
|
||||
|
$
|
1,166
|
|
|
$
|
238
|
|
|
$
|
(3
|
)
|
|
$
|
1,401
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Bank and corporate debt
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
113
|
|
2010
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
1
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
209
|
|
|
$
|
267
|
|
|
$
|
(5
|
)
|
|
$
|
471
|
|
Debt securities
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
|
$
|
223
|
|
|
$
|
267
|
|
|
$
|
(5
|
)
|
|
$
|
485
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Bank and corporate debt
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111
|
|
1
|
Refer to
Note 16
for additional information related to the estimated fair value.
|
2
|
During
2011
, the balance of available-for-sale securities increased significantly, primarily due to long-term investments made by our captive insurance company and an investment in Arca Continental, S.A.B. de C.V. ("Arca Contal"). Refer to
Note 17
for a discussion of the Arca Contal transaction.
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||||
|
Available-
for-Sale
Securities
|
|
|
Held-to-
Maturity
Securities
|
|
|
Available-
for-Sale
Securities
|
|
|
Held-to-
Maturity
Securities
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
110
|
|
Marketable securities
|
5
|
|
|
1
|
|
|
5
|
|
|
1
|
|
||||
Other investments, principally bottling companies
|
986
|
|
|
—
|
|
|
471
|
|
|
—
|
|
||||
Other assets
|
410
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||
|
$
|
1,401
|
|
|
$
|
113
|
|
|
$
|
485
|
|
|
$
|
111
|
|
|
Available-for-Sale Securities
|
|
Held-to-Maturity Securities
|
||||||||||||
|
Cost
|
|
|
Fair Value
|
|
|
Amortized Cost
|
|
|
Fair Value
|
|
||||
Within 1 year
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
113
|
|
|
$
|
113
|
|
After 1 year through 5 years
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
||||
After 5 years through 10 years
|
191
|
|
|
191
|
|
|
—
|
|
|
—
|
|
||||
After 10 years
|
104
|
|
|
102
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
834
|
|
|
1,071
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
1,166
|
|
|
$
|
1,401
|
|
|
$
|
113
|
|
|
$
|
113
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Raw materials and packaging
|
$
|
1,680
|
|
|
$
|
1,425
|
|
Finished goods
|
1,198
|
|
|
1,029
|
|
||
Other
|
214
|
|
|
196
|
|
||
Total inventories
|
$
|
3,092
|
|
|
$
|
2,650
|
|
|
|
|
Fair Value
1,2
|
||||||
Derivatives Designated as Hedging Instruments
|
Balance Sheet Location
1
|
|
December 31,
2011 |
|
|
December 31,
2010 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
170
|
|
|
$
|
32
|
|
Commodity contracts
|
Prepaid expenses and other assets
|
|
2
|
|
|
4
|
|
||
Interest rate swaps
|
Other assets
|
|
246
|
|
|
—
|
|
||
Total assets
|
|
|
$
|
418
|
|
|
$
|
36
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
41
|
|
|
$
|
141
|
|
Commodity contracts
|
Accounts payable and accrued expenses
|
|
1
|
|
|
2
|
|
||
Interest rate swaps
|
Other liabilities
|
|
—
|
|
|
97
|
|
||
Total liabilities
|
|
|
$
|
42
|
|
|
$
|
240
|
|
1
|
All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments.
|
2
|
Refer to Note 16 for additional information related to the estimated fair value.
|
|
|
|
Fair Value
1,2
|
||||||
Derivatives Not Designated as Hedging Instruments
|
Balance Sheet Location
1
|
|
December 31,
2011 |
|
|
December 31,
2010 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
29
|
|
|
$
|
65
|
|
Commodity contracts
|
Prepaid expenses and other assets
|
|
54
|
|
|
56
|
|
||
Other derivative instruments
|
Prepaid expenses and other assets
|
|
5
|
|
|
17
|
|
||
Total assets
|
|
|
$
|
88
|
|
|
$
|
138
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
116
|
|
|
$
|
144
|
|
Commodity contracts
|
Accounts payable and accrued expenses
|
|
47
|
|
|
—
|
|
||
Other derivative instruments
|
Accounts payable and accrued expenses
|
|
1
|
|
|
—
|
|
||
Total liabilities
|
|
|
$
|
164
|
|
|
$
|
144
|
|
1
|
All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments.
|
2
|
Refer to Note 16 for additional information related to the estimated fair value.
|
|
Gain (Loss)
Recognized
in Other
Comprehensive
Income ("OCI")
|
|
|
Location of Gain (Loss)
Recognized in Income
1
|
|
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
|
Gain (Loss)
Recognized in Income
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
|
|
|
|||
2011
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
3
|
|
|
Net operating revenues
|
|
$
|
(231
|
)
|
|
$
|
—
|
|
2
|
Interest rate locks
|
(11
|
)
|
|
Interest expense
|
|
(12
|
)
|
|
(1
|
)
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
—
|
|
|
—
|
|
|
|||
Total
|
$
|
(9
|
)
|
|
|
|
$
|
(243
|
)
|
|
$
|
(1
|
)
|
|
2010
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
(307
|
)
|
|
Net operating revenues
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
Interest rate locks
|
—
|
|
|
Interest expense
|
|
(15
|
)
|
|
—
|
|
|
|||
Commodity contracts
|
1
|
|
|
Cost of goods sold
|
|
—
|
|
|
—
|
|
|
|||
Total
|
$
|
(306
|
)
|
|
|
|
$
|
(17
|
)
|
|
$
|
(2
|
)
|
|
2009
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
(59
|
)
|
|
Net operating revenues
|
|
$
|
(62
|
)
|
|
$
|
—
|
|
2
|
Interest rate locks
|
—
|
|
|
Interest expense
|
|
(10
|
)
|
|
4
|
|
|
|||
Commodity contracts
|
—
|
|
|
Cost of goods sold
|
|
(47
|
)
|
|
—
|
|
|
|||
Total
|
$
|
(59
|
)
|
|
|
|
$
|
(119
|
)
|
|
$
|
4
|
|
|
1
|
The Company records gains and losses reclassified from AOCI in income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income.
|
2
|
Includes a de minimis amount of ineffectiveness in the hedging relationship.
|
Hedging Instruments and Hedged Items
|
Location of Gain (Loss)
Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|
|
2011
|
|
|
||
Interest rate swaps
|
Interest expense
|
$
|
343
|
|
Fixed-rate debt
|
Interest expense
|
(333
|
)
|
|
Total
|
|
$
|
10
|
|
2010
|
|
|
||
Interest rate swaps
|
Interest expense
|
$
|
(97
|
)
|
Fixed-rate debt
|
Interest expense
|
102
|
|
|
Total
|
|
$
|
5
|
|
|
Gain (Loss)
Recognized in OCI
|
||||||
Year Ended December 31,
|
2011
|
|
|
2010
|
|
||
Foreign currency contracts
|
$
|
(3
|
)
|
|
$
|
(15
|
)
|
|
|
|
Gains (Losses)
|
||||||||||
Derivatives Not Designated
as Hedging Instruments
|
Location of Gains (Losses)
Recognized in Income
|
|
Year Ended December 31,
|
||||||||||
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
Foreign currency contracts
|
Net operating revenues
|
|
$
|
7
|
|
|
$
|
(15
|
)
|
|
$
|
(16
|
)
|
Foreign currency contracts
|
Other income (loss) — net
|
|
(37
|
)
|
|
(46
|
)
|
|
114
|
|
|||
Foreign currency contracts
|
Cost of goods sold
|
|
(12
|
)
|
|
(9
|
)
|
|
—
|
|
|||
Commodity contracts
|
Cost of goods sold
|
|
(42
|
)
|
|
40
|
|
|
12
|
|
|||
Commodity contracts
|
Selling, general and administrative expenses
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
|
Interest expense
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|||
Interest rate locks
|
Interest expense
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|||
Other derivative instruments
|
Selling, general and administrative expenses
|
|
8
|
|
|
21
|
|
|
23
|
|
|||
Total
|
|
|
$
|
(87
|
)
|
|
$
|
(118
|
)
|
|
$
|
133
|
|
|
Nine Months Ended
|
|
|
Year Ended
|
|
||
|
October 1, 2010
|
|
|
December 31, 2009
|
|
||
Net operating revenues
|
$
|
16,464
|
|
|
$
|
21,645
|
|
Cost of goods sold
|
10,028
|
|
|
13,333
|
|
||
Gross profit
|
$
|
6,436
|
|
|
$
|
8,312
|
|
Operating income (loss)
|
$
|
1,369
|
|
|
$
|
1,527
|
|
Net income (loss)
|
$
|
677
|
|
|
$
|
731
|
|
|
Nine Months Ended
|
|
|
Year Ended
|
|
||
|
October 1, 2010
|
|
|
December 31, 2009
|
|
||
Concentrate, syrup and finished product sales to CCE
|
$
|
4,737
|
|
|
$
|
6,032
|
|
Syrup and finished product purchases from CCE
|
263
|
|
|
351
|
|
||
CCE purchases of sweeteners through our Company
|
251
|
|
|
419
|
|
||
Marketing payments made by us directly to CCE
|
314
|
|
|
415
|
|
||
Marketing payments made to third parties on behalf of CCE
|
106
|
|
|
174
|
|
||
Local media and marketing program reimbursements from CCE
|
268
|
|
|
330
|
|
||
Payments made to CCE for dispensing equipment repair services
|
64
|
|
|
87
|
|
||
Other payments — net
|
19
|
|
|
66
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Net operating revenues
|
$
|
42,472
|
|
|
$
|
38,663
|
|
|
$
|
34,292
|
|
Cost of goods sold
|
26,271
|
|
|
23,053
|
|
|
20,205
|
|
|||
Gross profit
|
$
|
16,201
|
|
|
$
|
15,610
|
|
|
$
|
14,087
|
|
Operating income
|
$
|
4,181
|
|
|
$
|
4,134
|
|
|
$
|
3,657
|
|
Consolidated net income
|
$
|
2,237
|
|
|
$
|
2,659
|
|
|
$
|
2,269
|
|
Less: Net income attributable to noncontrolling interests
|
99
|
|
|
89
|
|
|
78
|
|
|||
Net income attributable to common shareowners
|
$
|
2,138
|
|
|
$
|
2,570
|
|
|
$
|
2,191
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Current assets
|
$
|
13,960
|
|
|
$
|
12,223
|
|
Noncurrent assets
|
27,152
|
|
|
26,524
|
|
||
Total assets
|
$
|
41,112
|
|
|
$
|
38,747
|
|
Current liabilities
|
$
|
10,545
|
|
|
$
|
9,039
|
|
Noncurrent liabilities
|
11,646
|
|
|
11,175
|
|
||
Total liabilities
|
$
|
22,191
|
|
|
$
|
20,214
|
|
Shareowners' equity
|
$
|
18,392
|
|
|
$
|
18,046
|
|
Noncontrolling interest
|
529
|
|
|
487
|
|
||
Total equity
|
$
|
18,921
|
|
|
$
|
18,533
|
|
Company equity investment
|
$
|
7,234
|
|
|
$
|
6,954
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Land
|
$
|
1,141
|
|
|
$
|
1,122
|
|
Buildings and improvements
|
5,240
|
|
|
4,883
|
|
||
Machinery, equipment and vehicle fleet
|
14,609
|
|
|
13,421
|
|
||
Containers
|
895
|
|
|
826
|
|
||
Construction in progress
|
1,266
|
|
|
1,454
|
|
||
|
23,151
|
|
|
21,706
|
|
||
Less accumulated depreciation
|
8,212
|
|
|
6,979
|
|
||
Property, plant and equipment — net
|
$
|
14,939
|
|
|
$
|
14,727
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Trademarks
1
|
$
|
6,430
|
|
|
$
|
6,356
|
|
Bottlers' franchise rights
2
|
7,770
|
|
|
7,511
|
|
||
Goodwill
3
|
12,219
|
|
|
11,665
|
|
||
Other
|
113
|
|
|
113
|
|
||
Indefinite-lived intangible assets
4
|
$
|
26,532
|
|
|
$
|
25,645
|
|
1
|
The increase in 2011 was primarily related to the acquisition of Honest Tea. Refer to
Note 2
.
|
2
|
The increase in 2011 was primarily related to the reacquisition of Great Plains' rights to distribute Trademark Coca-Cola beverages in specified territories as well as the finalization of purchase accounting for the Company's 2010 acquisition of CCE's North American business. Refer to
Note 2
.
|
3
|
The increase in 2011 was primarily related to the acquisition of Great Plains and Honest Tea as well as the finalization of purchase accounting for the Company's 2010 acquisition of CCE's North American business. Refer to
Note 2
.
|
4
|
The distribution rights acquired from DPS are the only significant indefinite-lived intangible assets subject to renewal or extension arrangements. Refer to
Note 2
.
|
|
Eurasia &
Africa
|
|
|
Europe
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Pacific
|
|
|
Bottling
Investments
|
|
|
Total
|
|
|||||||
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance as of January 1
|
$
|
43
|
|
|
$
|
797
|
|
|
$
|
320
|
|
|
$
|
2,154
|
|
|
$
|
110
|
|
|
$
|
800
|
|
|
$
|
4,224
|
|
Effect of foreign currency translation
|
1
|
|
|
(102
|
)
|
|
4
|
|
|
—
|
|
|
2
|
|
|
(39
|
)
|
|
(134
|
)
|
|||||||
Acquisitions
1
|
—
|
|
|
—
|
|
|
54
|
|
|
7,746
|
|
|
—
|
|
|
83
|
|
|
7,883
|
|
|||||||
Adjustments related to the finalization
of purchase accounting
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Divestitures, deconsolidations and other
1,2
|
—
|
|
|
—
|
|
|
(212
|
)
|
|
(39
|
)
|
|
—
|
|
|
(57
|
)
|
|
(308
|
)
|
|||||||
Balance as of December 31
|
$
|
44
|
|
|
$
|
695
|
|
|
$
|
166
|
|
|
$
|
9,861
|
|
|
$
|
112
|
|
|
$
|
787
|
|
|
$
|
11,665
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance as of January 1
|
$
|
44
|
|
|
$
|
695
|
|
|
$
|
166
|
|
|
$
|
9,861
|
|
|
$
|
112
|
|
|
$
|
787
|
|
|
$
|
11,665
|
|
Effect of foreign currency translation
|
(6
|
)
|
|
15
|
|
|
(3
|
)
|
|
—
|
|
|
2
|
|
|
11
|
|
|
19
|
|
|||||||
Acquisitions
1
|
—
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|||||||
Adjustments related to the finalization
of purchase accounting
1
|
—
|
|
|
—
|
|
|
—
|
|
|
304
|
|
|
—
|
|
|
5
|
|
|
309
|
|
|||||||
Divestitures, deconsolidations and other
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|
—
|
|
|
(124
|
)
|
|
31
|
|
|||||||
Balance as of December 31
|
$
|
38
|
|
|
$
|
710
|
|
|
$
|
163
|
|
|
$
|
10,515
|
|
|
$
|
114
|
|
|
$
|
679
|
|
|
$
|
12,219
|
|
1
|
Refer to
Note 2
for information related to the Company's acquisitions and divestitures.
|
2
|
Refer to
Note 1
for information related to the deconsolidation of certain entities as a result of the Company's adoption of new accounting guidance issued by the FASB.
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
||||||
Customer relationships
|
$
|
619
|
|
$
|
(126
|
)
|
$
|
493
|
|
|
$
|
606
|
|
$
|
(83
|
)
|
$
|
523
|
|
Bottlers' franchise rights
1
|
668
|
|
(119
|
)
|
549
|
|
|
605
|
|
(22
|
)
|
583
|
|
||||||
Trademarks
|
99
|
|
(70
|
)
|
29
|
|
|
111
|
|
(67
|
)
|
44
|
|
||||||
Other
2
|
196
|
|
(130
|
)
|
66
|
|
|
258
|
|
(144
|
)
|
114
|
|
||||||
Total
|
$
|
1,582
|
|
$
|
(445
|
)
|
$
|
1,137
|
|
|
$
|
1,580
|
|
$
|
(316
|
)
|
$
|
1,264
|
|
1
|
The increase in 2011 was primarily related to the acquisition of Great Plains and the finalization of purchase accounting for the Company's 2010 acquisition of CCE's North American business. Refer to
Note 2
.
|
2
|
The decrease in 2011 was primarily related to the finalization of purchase accounting for certain of the Company's acquisitions and other individually insignificant items.
|
|
|
Amortization
Expense
|
|
|
2012
|
|
$
|
160
|
|
2013
|
|
148
|
|
|
2014
|
|
144
|
|
|
2015
|
|
137
|
|
|
2016
|
|
134
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Accrued marketing
|
$
|
2,286
|
|
|
$
|
2,250
|
|
Other accrued expenses
|
2,749
|
|
|
2,920
|
|
||
Trade accounts payable
|
2,172
|
|
|
1,887
|
|
||
Accrued compensation
|
1,048
|
|
|
1,068
|
|
||
Sales, payroll and other taxes
|
405
|
|
|
401
|
|
||
Container deposits
|
349
|
|
|
333
|
|
||
Accounts payable and accrued expenses
|
$
|
9,009
|
|
|
$
|
8,859
|
|
•
|
$
1,655 million
total
principal
amount of notes due September 1, 2016, at a fixed interest rate of
1.8 percent
; and
|
•
|
$
1,324 million
total
principal
amount of notes due September 1, 2021, at a fixed interest rate of
3.3 percent
.
|
•
|
During
the
first
quarter
of
2011
, the Company repurchased all of our outstanding U.K. pound sterling notes that had a carrying value of $
674 million
;
|
•
|
During the
second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
42 million
; and
|
•
|
During
the
third
quarter of 2011, the Company repurchased long-term debt that had a carrying value of $
19 million
.
|
•
|
$
1,250 million
total
principal
amount of notes due May 15, 2012, at a variable interest rate of
3
month LIBOR plus
0.05 percent
;
|
•
|
$
1,250 million
total
principal
amount of notes due November 15, 2013, at a fixed interest rate of
0.75 percent
;
|
•
|
$
1,000 million
total principal
amount of notes due November 15, 2015, at a fixed interest rate of
1.5 percent
; and
|
•
|
$
1,000 million
total
principal amount of notes due November 15, 2020, at a fixed interest rate of
3.15 percent
.
|
•
|
$
2,594 million
total
principal
amount of U.S. dollar notes due
2011
to
2037
at an average interest rate of
5.7 percent
;
|
•
|
$
2,288 million
total
principal amount
of U.S. dollar debentures due
2012
to
2098
at an average interest rate of
7.4 percent
;
|
•
|
$
275 million
total
principal amount
of U.S. dollar notes due
2011
at a variable interest rate of
1.0 percent
;
|
•
|
$
544 million
total
principal
amount of U.K. pound sterling notes due
2016
and
2021
at an average interest rate of
6.5 percent
;
|
•
|
$
303 million
principal
amount
of U.S. dollar
zero
coupon notes due
2020
; and
|
•
|
$
26 million
of other
long
-
term
debt.
|
•
|
$
900 million
total
principal
amount of notes due March 15, 2014, at a fixed interest rate of
3.625 percent
; and
|
•
|
$
1,350 million
total
principal
amount of notes due March 15, 2019, at a fixed interest rate of
4.875 percent
.
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||
|
Amount
|
|
|
Average
Rate
1
|
|
|
Amount
|
|
|
Average
Rate
1
|
|
||
U.S. dollar notes due 2012–2093
|
$
|
12,270
|
|
|
1.9
|
%
|
|
$
|
11,195
|
|
|
1.8
|
%
|
U.S. dollar debentures due 2012–2098
|
2,482
|
|
|
4.0
|
|
|
2,946
|
|
|
3.9
|
|
||
U.S. dollar zero coupon notes due 2020
2
|
130
|
|
|
8.4
|
|
|
222
|
|
|
8.4
|
|
||
U.K. pound sterling notes due 2016 and 2021
|
—
|
|
|
—
|
|
|
652
|
|
|
6.5
|
|
||
Other, due through 2098
3
|
584
|
|
|
4.8
|
|
|
404
|
|
|
5.0
|
|
||
Fair value adjustment
4
|
231
|
|
|
N/A
|
|
|
(102
|
)
|
|
N/A
|
|
||
Total
5,6
|
$
|
15,697
|
|
|
2.3
|
%
|
|
$
|
15,317
|
|
|
2.6
|
%
|
Less current portion
|
2,041
|
|
|
|
|
|
1,276
|
|
|
|
|
||
Long-term debt
|
$
|
13,656
|
|
|
|
|
|
$
|
14,041
|
|
|
|
|
1
|
These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements as well as fair value adjustments, if applicable. Refer to
Note 5
for a more detailed discussion on interest rate management.
|
2
|
This amount is shown net of unamortized discounts of $
41 million
and $
81 million
as of
December 31, 2011
and
2010
, respectively.
|
3
|
As of
December 31, 2011
, the amount shown includes $
372 million
of debt instruments that are due through
2020
.
|
4
|
Refer to
Note 5
for additional information about our fair value hedging strategy.
|
5
|
As of
December 31, 2011
and
2010
, the fair value of our long-term debt, including the current portion, was $
16,360 million
and $
16,218 million
, respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments.
|
6
|
The above notes and debentures include various restrictions, none of which is presently significant to our Company.
|
|
Maturities of
Long-Term Debt
|
|
|
2012
|
$
|
2,041
|
|
2013
|
1,515
|
|
|
2014
|
1,690
|
|
|
2015
|
1,462
|
|
|
2016
|
1,707
|
|
Years Ending December 31,
|
Operating Lease Payments
|
|
|
2012
|
$
|
241
|
|
2013
|
174
|
|
|
2014
|
133
|
|
|
2015
|
101
|
|
|
2016
|
78
|
|
|
Thereafter
|
270
|
|
|
Total minimum operating lease payments
1
|
$
|
997
|
|
1
|
Income associated with sublease arrangements is not significant.
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Fair value of options at grant date
|
$
|
9.28
|
|
|
$
|
9.39
|
|
|
$
|
6.38
|
|
Dividend yield
1
|
2.7
|
%
|
|
2.9
|
%
|
|
3.4
|
%
|
|||
Expected volatility
2
|
19.0
|
%
|
|
20.0
|
%
|
|
20.0
|
%
|
|||
Risk-free interest rate
3
|
2.3
|
%
|
|
3.0
|
%
|
|
2.8
|
%
|
|||
Expected term of the option
4
|
5 years
|
|
|
6 years
|
|
|
6 years
|
|
1
|
The dividend yield is the calculated yield on the Company's stock at the time of the grant.
|
2
|
Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors.
|
3
|
The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
|
4
|
The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historic exercise behavior.
|
•
|
The Coca-Cola Company
1999
Stock Option Plan (the "1999 Option Plan") was approved by shareowners in April 1999. Under the 1999 Option Plan, a maximum of
120 million
shares of our common stock was approved to be issued or transferred, through the grant of stock options, to certain officers and employees.
|
•
|
The Coca-Cola
Company
2002 Stock Option Plan (the "2002 Option Plan") was approved by shareowners in April 2002. An amendment to the 2002 Option Plan which permitted the issuance of stock appreciation rights was approved by shareowners in April 2003. Under the 2002 Option Plan, a maximum of
120 million
shares of our common stock was approved to be issued or transferred, through the grant of stock options or stock appreciation rights, to certain officers and employees. No stock appreciation rights have been issued under the 2002 Option Plan as of
December 31, 2011
.
|
•
|
The Coca-
Cola
Company 2008 Stock Option Plan (the "2008 Option Plan") was approved by shareowners in April 2008. Under the 2008 Option Plan, a maximum of
140 million
shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 2008 Option Plan.
|
•
|
As
of
December 31, 2011
, there were
90 million
shares available to be granted under the stock option plans discussed above. Options to purchase common stock under all of these plans have generally been granted at fair market value at the date of grant.
|
|
Shares
(In millions)
|
|
|
Weighted-Average
Exercise Price
|
|
|
Weighted-Average
Remaining
Contractual Life
|
|
Aggregate
Intrinsic Value
(In millions)
|
|
||
Outstanding on January 1, 2011
|
171
|
|
|
$
|
48.77
|
|
|
|
|
|
|
|
Granted
|
26
|
|
|
64.03
|
|
|
|
|
|
|
||
Exercised
|
(32
|
)
|
|
47.96
|
|
|
|
|
|
|
||
Forfeited/expired
|
(3
|
)
|
|
53.77
|
|
|
|
|
|
|
||
Outstanding on December 31, 2011
1
|
162
|
|
|
$
|
51.23
|
|
|
5.93 years
|
|
$
|
3,028
|
|
Expected to vest at December 31, 2011
|
160
|
|
|
$
|
51.13
|
|
|
5.90 years
|
|
$
|
3,009
|
|
Exercisable on December 31, 2011
|
106
|
|
|
$
|
48.65
|
|
|
4.76 years
|
|
$
|
2,266
|
|
1
|
Includes
3 million
stock option replacement awards in connection with our acquisition of CCE's North American business in 2010. These options had a weighted-average exercise price of $
36.98
, which generally vest over
three
years and expire
10
years from the original date of grant.
|
|
Share Units
(In thousands)
|
|
|
Weighted-Average
Grant-Date
Fair Value
|
|
|
Outstanding on January 1, 2011
|
5,254
|
|
|
$
|
51.60
|
|
Granted
|
3,054
|
|
|
51.16
|
|
|
Conversions:
|
|
|
|
|||
Restricted stock units
1,2
|
(2,311
|
)
|
|
53.08
|
|
|
Paid in cash equivalent
|
(10
|
)
|
|
53.13
|
|
|
Canceled/forfeited
|
(304
|
)
|
|
50.56
|
|
|
Outstanding on December 31, 2011
3
|
5,683
|
|
|
$
|
50.81
|
|
1
|
Represents the target amount of performance share units converted to restricted stock units based on the financial results for the 2008-2010 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements.
|
2
|
The performance share unit conversions during 2011 are presented at the target award amount. An additional
173,360
restricted stock units were awarded during 2011 based on the financial results of the 2008-2010 performance period.
|
3
|
The outstanding performance share units as of
December 31, 2011
, at the threshold award and maximum award levels were
2.8 million
and
8.5 million
, respectively.
|
|
Share Units
(In thousands)
|
|
|
Weighted-Average
Grant-Date
Fair Value
1
|
|
|
Nonvested on January 1, 2011
|
797
|
|
|
$
|
43.29
|
|
Granted:
|
|
|
|
|||
Restricted stock units
2
|
2,311
|
|
|
53.08
|
|
|
Vested and released
|
(1,024
|
)
|
|
45.72
|
|
|
Canceled/forfeited
|
(17
|
)
|
|
43.71
|
|
|
Nonvested on December 31, 2011
3
|
2,067
|
|
|
$
|
53.05
|
|
1
|
The weighted-average grant-date fair value is based on the fair values of the performance share units grant fair values.
|
2
|
The granted shares are presented at the performance share units target award amount. An additional
173,360
restricted stock units were granted based on the financial results of the 2008-2010 performance period.
|
3
|
The nonvested shares as of
December 31, 2011
, are presented at the performance share units target award amount. An additional
154,500
shares were outstanding and nonvested as of December 31, 2011.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
||||
Benefit obligation at beginning of year
1
|
$
|
7,292
|
|
|
$
|
3,996
|
|
|
$
|
889
|
|
|
$
|
483
|
|
Service cost
|
249
|
|
|
143
|
|
|
32
|
|
|
24
|
|
||||
Interest cost
|
391
|
|
|
260
|
|
|
45
|
|
|
30
|
|
||||
Foreign currency exchange rate changes
|
30
|
|
|
(80
|
)
|
|
2
|
|
|
—
|
|
||||
Amendments
|
(57
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|
—
|
|
||||
Actuarial loss (gain)
|
773
|
|
|
109
|
|
|
45
|
|
|
1
|
|
||||
Benefits paid
2
|
(440
|
)
|
|
(249
|
)
|
|
(63
|
)
|
|
(37
|
)
|
||||
Business combinations
3
|
—
|
|
|
3,163
|
|
|
—
|
|
|
381
|
|
||||
Divestitures
4
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
(24
|
)
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Special termination benefits
|
8
|
|
|
—
|
|
|
3
|
|
|
1
|
|
||||
Other
|
33
|
|
|
2
|
|
|
12
|
|
|
6
|
|
||||
Benefit obligation at end of year
1
|
$
|
8,255
|
|
|
$
|
7,292
|
|
|
$
|
953
|
|
|
$
|
889
|
|
Fair value of plan assets at beginning of year
|
$
|
5,497
|
|
|
$
|
3,032
|
|
|
$
|
187
|
|
|
$
|
173
|
|
Actual return on plan assets
|
73
|
|
|
445
|
|
|
(4
|
)
|
|
16
|
|
||||
Employer contributions
|
1,001
|
|
|
77
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency exchange rate changes
|
(1
|
)
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(374
|
)
|
|
(193
|
)
|
|
(1
|
)
|
|
(6
|
)
|
||||
Business combinations
3
|
—
|
|
|
2,231
|
|
|
—
|
|
|
—
|
|
||||
Divestitures
4
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
(27
|
)
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
||||
Other
|
2
|
|
|
2
|
|
|
3
|
|
|
4
|
|
||||
Fair value of plan assets at end of year
|
$
|
6,171
|
|
|
$
|
5,497
|
|
|
$
|
185
|
|
|
$
|
187
|
|
Net liability recognized
|
$
|
(2,084
|
)
|
|
$
|
(1,795
|
)
|
|
$
|
(768
|
)
|
|
$
|
(702
|
)
|
1
|
For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was
$7,958 million
and
$6,949 million
as of
December 31, 2011
and
2010
, respectively.
|
2
|
Benefits paid to pension plan participants during
2011
and
2010
included
$66 million
and
$56 million
, respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during
2011
and
2010
included
$62 million
and
$31 million
, respectively, that were paid from Company assets.
|
3
|
Related to the acquisition of CCE's North American business during the fourth quarter of 2010. Refer to
Note 2
.
|
4
|
Primarily related to the sale of our Norwegian bottling operation to New CCE during the fourth quarter of 2010. Refer to
Note 2
.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
||||
Noncurrent asset
|
$
|
468
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liability
|
(68
|
)
|
|
(55
|
)
|
|
(21
|
)
|
|
(21
|
)
|
||||
Long-term liability
|
(2,484
|
)
|
|
(1,806
|
)
|
|
(747
|
)
|
|
(681
|
)
|
||||
Net liability recognized
|
$
|
(2,084
|
)
|
|
$
|
(1,795
|
)
|
|
$
|
(768
|
)
|
|
$
|
(702
|
)
|
December 31,
|
2011
|
|
|
2010
|
|
||
Projected benefit obligation
|
$
|
7,591
|
|
|
$
|
7,024
|
|
Fair value of plan assets
|
5,048
|
|
|
5,172
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Accumulated benefit obligation
|
$
|
7,277
|
|
|
$
|
6,503
|
|
Fair value of plan assets
|
4,998
|
|
|
4,981
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
||||
Cash and cash equivalents
|
$
|
104
|
|
|
$
|
88
|
|
|
$
|
123
|
|
|
$
|
38
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
U.S.-based companies
|
1,362
|
|
|
1,324
|
|
|
33
|
|
|
30
|
|
||||
International-based companies
|
630
|
|
|
631
|
|
|
323
|
|
|
107
|
|
||||
Fixed-income securities:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
358
|
|
|
268
|
|
|
415
|
|
|
163
|
|
||||
Corporate bonds and debt securities
|
669
|
|
|
625
|
|
|
49
|
|
|
20
|
|
||||
Mutual, pooled and commingled funds
1
|
323
|
|
|
431
|
|
|
406
|
|
|
700
|
|
||||
Hedge funds/limited partnerships
|
458
|
|
|
415
|
|
|
31
|
|
|
23
|
|
||||
Real estate
|
256
|
|
|
230
|
|
|
14
|
|
|
12
|
|
||||
Other
|
114
|
|
|
106
|
|
|
503
|
|
|
286
|
|
||||
Total pension plan assets
2
|
$
|
4,274
|
|
|
$
|
4,118
|
|
|
$
|
1,897
|
|
|
$
|
1,379
|
|
1
|
Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual and pooled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans.
|
2
|
Fair value disclosures related to our pension assets are included in
Note 16
. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall, a reconciliation of the beginning and ending balances of Level 3 assets and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets.
|
(1)
|
optimize the long-term return on plan assets at an acceptable level of risk;
|
(2)
|
maintain a broad diversification across asset classes and among investment managers;
|
(3)
|
maintain careful control of the risk level within each asset class; and
|
(4)
|
focus on a long-term return objective.
|
December 31,
|
2011
|
|
|
2010
|
|
||
Cash and cash equivalents
|
$
|
86
|
|
|
$
|
84
|
|
Equity securities:
|
|
|
|
||||
U.S.-based companies
|
70
|
|
|
75
|
|
||
International-based companies
|
13
|
|
|
14
|
|
||
Fixed-income securities:
|
|
|
|
||||
Government bonds
|
2
|
|
|
1
|
|
||
Corporate bonds and debt securities
|
6
|
|
|
6
|
|
||
Mutual, pooled and commingled funds
|
3
|
|
|
3
|
|
||
Hedge funds/limited partnerships
|
2
|
|
|
1
|
|
||
Real estate
|
2
|
|
|
2
|
|
||
Other
|
1
|
|
|
1
|
|
||
Total other postretirement benefit plan assets
1
|
$
|
185
|
|
|
$
|
187
|
|
1
|
Fair value disclosures related to our other postretirement benefit plan assets are included in
Note 16
. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall, a reconciliation of the beginning and ending balances of Level 3 assets and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
||||||
Service cost
|
$
|
249
|
|
|
$
|
143
|
|
|
$
|
113
|
|
|
$
|
32
|
|
|
$
|
24
|
|
|
$
|
21
|
|
Interest cost
|
391
|
|
|
260
|
|
|
213
|
|
|
45
|
|
|
30
|
|
|
29
|
|
||||||
Expected return on plan assets
|
(494
|
)
|
|
(295
|
)
|
|
(214
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|
(8
|
)
|
||||||
Amortization of prior service cost (credit)
|
5
|
|
|
5
|
|
|
5
|
|
|
(61
|
)
|
|
(61
|
)
|
|
(61
|
)
|
||||||
Amortization of actuarial loss
|
87
|
|
|
57
|
|
|
86
|
|
|
2
|
|
|
3
|
|
|
—
|
|
||||||
Net periodic benefit cost (credit)
|
$
|
238
|
|
|
$
|
170
|
|
|
$
|
203
|
|
|
$
|
10
|
|
|
$
|
(12
|
)
|
|
$
|
(19
|
)
|
Settlement charge
|
3
|
|
|
6
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailment charge
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Special termination benefits
1
|
8
|
|
|
—
|
|
|
9
|
|
|
3
|
|
|
1
|
|
|
4
|
|
||||||
Total cost (credit) recognized in the statements of income
|
$
|
249
|
|
|
$
|
176
|
|
|
$
|
218
|
|
|
$
|
13
|
|
|
$
|
(11
|
)
|
|
$
|
(15
|
)
|
1
|
The special termination benefits primarily relate to the Company's productivity, restructuring and integration initiatives. Refer to
Note 18
for additional information related to our productivity, restructuring and integration initiatives.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
||||
Beginning balance in AOCI
|
$
|
(1,006
|
)
|
|
$
|
(1,119
|
)
|
|
$
|
72
|
|
|
$
|
118
|
|
Recognized prior service cost (credit)
|
5
|
|
|
5
|
|
|
(61
|
)
|
|
(61
|
)
|
||||
Recognized net actuarial loss (gain)
|
90
|
|
|
63
|
|
|
2
|
|
|
3
|
|
||||
Prior service credit (cost) arising in current year
|
57
|
|
|
6
|
|
|
12
|
|
|
—
|
|
||||
Net actuarial (loss) gain arising in current year
|
(1,194
|
)
|
|
41
|
|
|
(57
|
)
|
|
8
|
|
||||
Impact of divestitures
1
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
Translation gain (loss)
|
(7
|
)
|
|
6
|
|
|
(2
|
)
|
|
4
|
|
||||
Ending balance in AOCI
|
$
|
(2,055
|
)
|
|
$
|
(1,006
|
)
|
|
$
|
(34
|
)
|
|
$
|
72
|
|
1
|
Primarily related to the sale of our Norwegian bottling operation to New CCE. Refer to
Note 2
.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
||||
Prior service credit (cost)
|
$
|
14
|
|
|
$
|
(49
|
)
|
|
$
|
73
|
|
|
$
|
122
|
|
Net actuarial loss
|
(2,069
|
)
|
|
(957
|
)
|
|
(107
|
)
|
|
(50
|
)
|
||||
Ending balance in AOCI
|
$
|
(2,055
|
)
|
|
$
|
(1,006
|
)
|
|
$
|
(34
|
)
|
|
$
|
72
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||
Amortization of prior service cost (credit)
|
$
|
(2
|
)
|
|
$
|
(52
|
)
|
Amortization of actuarial loss
|
137
|
|
|
7
|
|
||
|
$
|
135
|
|
|
$
|
(45
|
)
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
Discount rate
|
4.75
|
%
|
|
5.50
|
%
|
|
4.75
|
%
|
|
5.25
|
%
|
Rate of increase in compensation levels
|
3.25
|
%
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||
December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
Discount rate
|
5.50
|
%
|
|
5.75
|
%
|
|
6.00
|
%
|
|
5.25
|
%
|
|
5.50
|
%
|
|
6.25
|
%
|
Rate of increase in compensation levels
|
4.00
|
%
|
|
3.75
|
%
|
|
3.75
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
8.25
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
December 31,
|
2011
|
|
|
2010
|
|
Health care cost trend rate assumed for next year
|
8.00
|
%
|
|
8.50
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
5.00
|
%
|
|
5.00
|
%
|
Year that the rate reaches the ultimate trend rate
|
2018
|
|
|
2018
|
|
Year Ended December 31,
|
2012
|
|
|
2013
|
|
|
2014
|
|
|
2015
|
|
|
2016
|
|
|
2017–2021
|
|
||||||
Pension benefit payments
|
$
|
486
|
|
|
$
|
501
|
|
|
$
|
521
|
|
|
$
|
537
|
|
|
$
|
553
|
|
|
$
|
3,042
|
|
Other benefit payments
1
|
53
|
|
|
56
|
|
|
59
|
|
|
62
|
|
|
65
|
|
|
342
|
|
||||||
Total estimated benefit payments
|
$
|
539
|
|
|
$
|
557
|
|
|
$
|
580
|
|
|
$
|
599
|
|
|
$
|
618
|
|
|
$
|
3,384
|
|
1
|
The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be approximately
$17 million
for the period 2012–2016, and
$21 million
for the period 2017–2021.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
United States
|
$
|
3,010
|
|
|
$
|
7,224
|
|
1
|
$
|
2,691
|
|
International
|
8,429
|
|
|
7,019
|
|
|
6,255
|
|
|||
|
$
|
11,439
|
|
|
$
|
14,243
|
|
|
$
|
8,946
|
|
1
|
The increase in 2010 was primarily attributable to a $
4,978 million
gain due to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's North American business. Refer to
Note 2
.
|
|
United States
|
|
|
State and Local
|
|
|
International
|
|
|
Total
|
|
||||
2011
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
286
|
|
|
$
|
66
|
|
|
$
|
1,425
|
|
|
$
|
1,777
|
|
Deferred
|
891
|
|
|
27
|
|
|
110
|
|
|
1,028
|
|
||||
2010
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
470
|
|
|
$
|
85
|
|
|
$
|
1,212
|
|
|
$
|
1,767
|
|
Deferred
|
599
|
|
|
2
|
|
|
16
|
|
|
617
|
|
||||
2009
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
509
|
|
|
$
|
79
|
|
|
$
|
1,099
|
|
|
$
|
1,687
|
|
Deferred
|
322
|
|
|
18
|
|
|
13
|
|
|
353
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
Statutory U.S. federal tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
State and local income taxes — net of federal benefit
|
0.9
|
|
|
0.6
|
|
|
0.7
|
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(9.5
|
)
|
1,2.3
|
(5.6
|
)
|
11
|
(11.6
|
)
|
19
|
Equity income or loss
|
(1.4
|
)
|
4
|
(1.9
|
)
|
12
|
(2.3
|
)
|
20
|
CCE transaction
|
—
|
|
|
(12.5
|
)
|
13,14
|
—
|
|
|
Sale of Norwegian and Swedish bottling operations
|
—
|
|
5
|
0.4
|
|
15
|
—
|
|
|
Other operating charges
|
0.3
|
|
6
|
0.4
|
|
16
|
0.6
|
|
21
|
Other — net
|
(0.8
|
)
|
7,8,9,10
|
0.3
|
|
17,18
|
0.4
|
|
22,23
|
Effective tax rate
|
24.5
|
%
|
|
16.7
|
%
|
|
22.8
|
%
|
|
1
|
Includes a tax benefit of $
6 million
related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
|
2
|
Includes a
zero percent
effective tax rate on charges due to the impairment of available-for-sale securities. Refer to Note 3 and Note 17.
|
3
|
Includes a tax expense of $
299 million
(or a
0.7 percent
impact on our effective tax rate) related to the net gain recognized as a result of the merger of Embotelladoras Arca, S.A.B. de C.V. ("Arca") and Grupo Continental S.A.B. ("Contal"), the gain recognized on the sale of our investment in Embonor and gains the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the year at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17.
|
4
|
Includes a tax benefit of $
7 million
(or a
0.1 percent
impact on our effective tax rate) related to our proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17.
|
5
|
Includes a tax benefit of $
2 million
related to the finalization of working capital adjustments on the sale of our Norwegian and Swedish bottling operations. Refer to Note 2 and Note 17.
|
6
|
Includes a tax benefit of $
224 million
(or a
0.3 percent
impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs incurred in connection with the merger of Arca and Contal, costs associated with the earthquake and tsunami that devastated northern and eastern Japan and costs associated with the flooding in Thailand. Refer to Note 17.
|
7
|
Includes a tax benefit of $
8 million
related to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business.
|
8
|
Includes a tax benefit of $
3 million
related to net charges we recognized on the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's North American business as well as the early extinguishment of certain other long-term debt. Refer to Note 10.
|
9
|
Includes a tax benefit of $
14 million
on charges due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 17.
|
10
|
Includes a tax benefit of $
2 million
related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions.
|
11
|
Includes tax expense of $
265 million
(or a
1.9 percent
impact on our effective tax rate), primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties.
|
12
|
Includes a tax benefit of $
9 million
(or a
0.1 percent
impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17.
|
13
|
Includes a tax benefit of $
34 million
(or a reduction of
12.5 percent
on our effective tax rate) related to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's North American business. The tax benefit reflects the impact of reversing deferred tax liabilities associated with our equity investment in CCE prior to the acquisition. Refer to Note 2.
|
14
|
Includes a tax benefit of $
99 million
related to charges associated with the write-off of preexisting relationships with CCE. Refer to Note 2.
|
15
|
Includes a tax expense of $
261 million
(or a
0.4 percent
impact on our effective tax rate) related to the sale of our Norwegian and Swedish bottling operations. Refer to Note 2.
|
16
|
Includes a tax benefit of $
223 million
(or a
0.4 percent
impact on our effective tax rate), primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs and charitable contributions. Refer to Note 17.
|
17
|
Includes a tax benefit of $
114 million
(or a
0.5 percent
impact on our effective tax rate) related to charges associated with the repurchase of certain long-term debt and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer, the loss related to the remeasurement of our Venezuelan subsidiary's net assets, other-than-temporary impairment charges and a donation of preferred shares in one of our equity method investees. Refer to Note 17.
|
18
|
Includes a tax expense of $
31 million
(or a
0.2 percent
impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, and other tax matters in certain domestic jurisdictions.
|
19
|
Includes a tax benefit of $
16 million
(or a reduction of
0.2 percent
on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
|
20
|
Includes a tax benefit of $
17 million
(or a
0.1 percent
impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17.
|
21
|
Includes a tax benefit of $
16 million
(or a
0.6 percent
impact on our effective tax rate) related to restructuring charges and asset impairments. Refer to Note 17.
|
22
|
Includes a
zero percent
effective rate (or a reduction of
0.2 percent
on our effective tax rate) related to the sale of all or a portion of certain investments. Refer to Note 3.
|
23
|
Includes a
zero percent
effective rate (or a
0.1 percent
impact on our effective tax rate) related to an other-than-temporary impairment of a cost method investment. Refer to Note 17.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
387
|
|
|
$
|
354
|
|
|
$
|
369
|
|
Increases related to prior period tax positions
|
9
|
|
|
26
|
|
|
49
|
|
|||
Decreases related to prior period tax positions
|
(19
|
)
|
|
(10
|
)
|
|
(28
|
)
|
|||
Increases related to current period tax positions
|
6
|
|
|
33
|
|
|
16
|
|
|||
Decreases related to current period tax positions
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Decreases related to settlements with taxing authorities
|
(5
|
)
|
|
—
|
|
|
(27
|
)
|
|||
Reductions as a result of a lapse of the applicable statute of limitations
|
(46
|
)
|
|
(1
|
)
|
|
(73
|
)
|
|||
Increase related to acquisition of CCE's North American business
|
—
|
|
|
6
|
|
|
—
|
|
|||
Increases (decreases) from effects of foreign currency exchange rates
|
(11
|
)
|
|
(21
|
)
|
|
48
|
|
|||
Ending balance of unrecognized tax benefits
|
$
|
320
|
|
|
$
|
387
|
|
|
$
|
354
|
|
December 31,
|
2011
|
|
|
2010
|
|
|
||
Deferred tax assets:
|
|
|
|
|
||||
Property, plant and equipment
|
$
|
224
|
|
|
$
|
49
|
|
|
Trademarks and other intangible assets
|
68
|
|
|
271
|
|
|
||
Equity method investments (including translation adjustment)
|
278
|
|
|
304
|
|
|
||
Net change in unrealized gain/loss
|
43
|
|
|
28
|
|
|
||
Other liabilities
|
1,257
|
|
|
1,257
|
|
|
||
Benefit plans
|
2,022
|
|
|
2,019
|
|
|
||
Net operating/capital loss carryforwards
|
818
|
|
|
911
|
|
|
||
Other
|
418
|
|
|
683
|
|
1
|
||
Gross deferred tax assets
|
$
|
5,128
|
|
|
$
|
5,522
|
|
|
Valuation allowances
|
(859
|
)
|
|
(950
|
)
|
|
||
Total deferred tax assets
2,3
|
$
|
4,269
|
|
|
$
|
4,572
|
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Property, plant and equipment
|
$
|
(2,039
|
)
|
|
$
|
(2,227
|
)
|
|
Trademarks and other intangible assets
|
(4,201
|
)
|
|
(4,284
|
)
|
|
||
Equity method investments (including translation adjustment)
|
(816
|
)
|
|
(509
|
)
|
|
||
Net change in unrealized gain/loss
|
(129
|
)
|
|
(102
|
)
|
|
||
Other liabilities
|
(129
|
)
|
|
(5
|
)
|
|
||
Benefit plans
|
(445
|
)
|
|
(383
|
)
|
|
||
Other
|
(753
|
)
|
|
(765
|
)
|
|
||
Total deferred tax liabilities
4
|
$
|
(8,512
|
)
|
|
$
|
(8,275
|
)
|
|
Net deferred tax liabilities
|
$
|
(4,243
|
)
|
|
$
|
(3,703
|
)
|
|
1
|
Includes $
183 million
of tax credit carryforwards acquired in conjunction with our acquisition of CCE's North American business.
|
2
|
Noncurrent deferred tax assets of $
243 million
and $
98 million
were included in the line item other assets in our consolidated balance sheets as of
December 31, 2011
and
2010
, respectively.
|
3
|
Current deferred tax assets of $
227 million
and $
478 million
were included in the line item prepaid expenses and other assets in our consolidated balance sheets as of
December 31, 2011
and
2010
, respectively.
|
4
|
Current deferred tax liabilities of $
19 million
and $
18 million
were included in the line item accounts payable and accrued expenses in our consolidated balance sheets as of
December 31, 2011
and
2010
, respectively.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
Balance at beginning of year
|
$
|
950
|
|
|
$
|
681
|
|
|
$
|
569
|
|
Increase due to our acquisition of CCE's North American business
|
—
|
|
|
291
|
|
|
—
|
|
|||
Additions
|
138
|
|
|
115
|
|
|
178
|
|
|||
Deductions
|
(229
|
)
|
|
(137
|
)
|
|
(66
|
)
|
|||
Balance at end of year
|
$
|
859
|
|
|
$
|
950
|
|
|
$
|
681
|
|
December 31,
|
2011
|
|
|
2010
|
|
||
Foreign currency translation adjustment
|
$
|
(1,445
|
)
|
|
$
|
(805
|
)
|
Accumulated derivative net losses
|
(53
|
)
|
|
(198
|
)
|
||
Unrealized net gain on available-for-sale securities
|
160
|
|
|
167
|
|
||
Adjustment to pension and other benefit liabilities
|
(1,365
|
)
|
|
(614
|
)
|
||
Accumulated other comprehensive income (loss)
|
$
|
(2,703
|
)
|
|
$
|
(1,450
|
)
|
|
Before-Tax
Amount
|
|
|
Income
Tax
|
|
|
After-Tax
Amount
|
|
|||
2011
|
|
|
|
|
|
||||||
Net foreign currency translation adjustment
|
$
|
(639
|
)
|
|
$
|
(1
|
)
|
|
$
|
(640
|
)
|
Net gain (loss) on derivatives
1
|
240
|
|
|
(95
|
)
|
|
145
|
|
|||
Net change in unrealized gain on available-for-sale securities
|
6
|
|
|
(13
|
)
|
|
(7
|
)
|
|||
Net change in pension and other benefit liabilities
|
(1,156
|
)
|
|
405
|
|
|
(751
|
)
|
|||
Other comprehensive income (loss)
|
$
|
(1,549
|
)
|
|
$
|
296
|
|
|
$
|
(1,253
|
)
|
2010
|
|
|
|
|
|
||||||
Net foreign currency translation adjustment
|
$
|
(966
|
)
|
|
$
|
31
|
|
|
$
|
(935
|
)
|
Net gain (loss) on derivatives
1
|
(222
|
)
|
|
102
|
|
|
(120
|
)
|
|||
Net change in unrealized gain on available-for-sale securities
|
133
|
|
|
(31
|
)
|
|
102
|
|
|||
Net change in pension and other benefit liabilities
|
396
|
|
|
(136
|
)
|
|
260
|
|
|||
Other comprehensive income (loss)
|
$
|
(659
|
)
|
|
$
|
(34
|
)
|
|
$
|
(693
|
)
|
2009
|
|
|
|
|
|
||||||
Net foreign currency translation adjustment
|
$
|
1,968
|
|
|
$
|
(144
|
)
|
|
$
|
1,824
|
|
Net gain (loss) on derivatives
1
|
58
|
|
|
(24
|
)
|
|
34
|
|
|||
Net change in unrealized gain on available-for-sale securities
2
|
(39
|
)
|
|
(13
|
)
|
|
(52
|
)
|
|||
Net change in pension and other benefit liabilities
|
173
|
|
|
(62
|
)
|
|
111
|
|
|||
Other comprehensive income (loss)
|
$
|
2,160
|
|
|
$
|
(243
|
)
|
|
$
|
1,917
|
|
1
|
Refer to
Note 5
for information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to
Note 3
for additional information related to these divestitures.
|
•
|
Level 1 — Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
|
December 31, 2011
|
||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Netting
Adjustment
1
|
|
|
Fair Value
Measurements
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
$
|
166
|
|
|
$
|
41
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
211
|
|
Available-for-sale securities
|
1,071
|
|
|
214
|
|
|
116
|
|
2
|
—
|
|
|
1,401
|
|
|||||
Derivatives
3
|
39
|
|
|
467
|
|
|
—
|
|
|
(117
|
)
|
|
389
|
|
|||||
Total assets
|
$
|
1,276
|
|
|
$
|
722
|
|
|
$
|
120
|
|
|
$
|
(117
|
)
|
|
$
|
2,001
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives
3
|
$
|
5
|
|
|
$
|
201
|
|
|
$
|
—
|
|
|
$
|
(121
|
)
|
|
$
|
85
|
|
Total liabilities
|
$
|
5
|
|
|
$
|
201
|
|
|
$
|
—
|
|
|
$
|
(121
|
)
|
|
$
|
85
|
|
1
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties.
|
2
|
Primarily related to long-term debt securities that mature in 2018.
|
3
|
Refer to Note 5 for additional information related to the composition of our derivative portfolio.
|
|
December 31, 2010
|
||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Netting
Adjustment
1
|
|
|
Fair Value
Measurements
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading securities
|
$
|
183
|
|
|
$
|
23
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
209
|
|
Available-for-sale securities
|
480
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|||||
Derivatives
2
|
19
|
|
|
151
|
|
|
4
|
|
|
(143
|
)
|
|
31
|
|
|||||
Total assets
|
$
|
682
|
|
|
$
|
179
|
|
|
$
|
7
|
|
|
$
|
(143
|
)
|
|
$
|
725
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives
2
|
$
|
2
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
(142
|
)
|
|
$
|
242
|
|
Total liabilities
|
$
|
2
|
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
(142
|
)
|
|
$
|
242
|
|
1
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties.
|
2
|
Refer to Note 5 for additional information related to the composition of our derivative portfolio.
|
|
Gains (Losses)
|
|
||||||
December 31,
|
2011
|
|
|
2010
|
|
|
||
Exchange of investment in equity securities
|
$
|
418
|
|
1
|
$
|
—
|
|
|
Valuation of shares in equity method investee
|
122
|
|
2
|
—
|
|
|
||
Equity method investments
|
(41
|
)
|
3
|
(15
|
)
|
6
|
||
Available-for-sale securities
|
(17
|
)
|
4
|
(26
|
)
|
7
|
||
Inventories
|
(11
|
)
|
5
|
—
|
|
|
||
Cold-drink equipment
|
(1
|
)
|
5
|
—
|
|
|
||
Investment in formerly unconsolidated subsidiary
|
—
|
|
|
4,978
|
|
8
|
||
Retained investment in formerly consolidated subsidiary
|
—
|
|
|
12
|
|
9
|
||
Total
|
$
|
470
|
|
|
$
|
4,949
|
|
|
1
|
As a result of the merger of Arca and Contal, the Company recognized a gain on the exchange of the shares we previously owned in Contal for shares in the newly formed entity Arca Contal. The gain represents the difference between the carrying value of the Contal shares we relinquished and the fair value of the Arca Contal shares we received as a result of the transaction. The gain and initial carrying value of our investment were calculated based on Level 1 inputs. Refer to
Note 17
.
|
2
|
The Company recognized a net gain of $
122 million
, primarily as a result of an equity method investee issuing additional shares of its own stock at per share amounts greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company sold a proportionate share of its investment in the equity method investee. The gains the Company recognized as a result of the previous transactions were partially offset by charges associated with certain of the Company's equity method investments in Japan. The gains and charges were determined using Level 1 inputs. Refer to
Note 17
.
|
3
|
The Company recognized impairment charges of $
41 million
related to an investment in an entity accounted for under the equity method of accounting. Subsequent to the recognition of these impairment charges, the Company's remaining financial exposure related to this entity is not significant. This charge was determined using Level 3 inputs. Refer to
Note 17
.
|
4
|
The Company recognized other-than-temporary impairment charges of $
17 million
on certain available-for-sale securities. The Company determined the fair value of these securities based on Level 1 inputs. Refer to
Note 17
.
|
5
|
These assets primarily consisted of Company-owned inventory as well as cold-drink equipment that were damaged or lost as a result of the natural disasters in Japan on March 11, 2011. We recorded impairment charges of $
11 million
and $
1 million
related to Company-owned inventory and cold-drink equipment, respectively. These charges were determined using Level 3 inputs based on the carrying value of the inventory and cold-drink equipment prior to the disasters. Refer to
Note 17
.
|
6
|
The Company recognized an other-than-temporary impairment charge of $
15 million
. The carrying value of the Company's investment prior to recognizing the impairment was $
15 million
. The Company determined that the fair value of the investment was zero based on Level 3 inputs. Refer to
Note 17
.
|
7
|
The Company recognized other-than-temporary impairment charges on certain available-for-sale securities. The aggregate carrying value of these securities prior to recognizing the impairment charges was $
131 million
. The Company determined the fair value of these securities based on Level 1 and Level 2 inputs. The fair value of the Level 2 security was based on a dealer quotation. Refer to
Note 17
.
|
8
|
The Company recognized a gain on our previously held investment in CCE, which had been accounted for under the equity method of accounting prior to our acquisition of CCE's North American business. Accounting principles generally accepted in the United States require the acquirer to remeasure its previously held noncontrolling equity interest in the acquired entity to fair value as of the acquisition date and recognize any gains or losses in earnings. The Company remeasured our equity interest in CCE based on Level 1 inputs. Refer to
Note 2
and
Note 17
.
|
9
|
The Company sold
50 percent
of our investment in Leão Junior, which was a wholly owned subsidiary prior to this transaction. The gain on the transaction consisted of two parts: (1) the difference between the consideration received and
50 percent
of the carrying value of our investment and (2) the fair value adjustment for our remaining
50 percent
ownership. The gain in the table above represents the portion of the total gain related to the remeasurement of our retained investment in Leão Junior, which was based on Level 3 inputs. Refer to
Note 17
for further discussion of this transaction.
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||||||||
Cash and cash equivalents
|
$
|
152
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
227
|
|
|
$
|
50
|
|
|
$
|
76
|
|
|
—
|
|
|
$
|
126
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S.-based companies
|
1,366
|
|
|
15
|
|
|
14
|
|
|
1,395
|
|
|
1,325
|
|
|
14
|
|
|
15
|
|
|
1,354
|
|
||||||||
International-based companies
|
865
|
|
|
82
|
|
|
6
|
|
|
953
|
|
|
689
|
|
|
49
|
|
|
—
|
|
|
738
|
|
||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government bonds
|
—
|
|
|
773
|
|
|
—
|
|
|
773
|
|
|
—
|
|
|
431
|
|
|
—
|
|
|
431
|
|
||||||||
Corporate bonds and debt securities
|
—
|
|
|
718
|
|
|
—
|
|
|
718
|
|
|
—
|
|
|
645
|
|
|
—
|
|
|
645
|
|
||||||||
Mutual, pooled and commingled funds
|
167
|
|
|
557
|
|
|
5
|
|
|
729
|
|
|
248
|
|
|
863
|
|
|
20
|
|
|
1,131
|
|
||||||||
Hedge funds / limited partnerships
|
—
|
|
|
140
|
|
|
349
|
|
|
489
|
|
|
—
|
|
|
121
|
|
|
317
|
|
|
438
|
|
||||||||
Real estate
|
—
|
|
|
—
|
|
|
270
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|
242
|
|
||||||||
Other
|
—
|
|
|
99
|
|
|
518
|
|
1
|
617
|
|
|
3
|
|
|
86
|
|
|
303
|
|
1
|
392
|
|
||||||||
Total
|
$
|
2,550
|
|
|
$
|
2,459
|
|
|
$
|
1,162
|
|
|
$
|
6,171
|
|
|
$
|
2,315
|
|
|
$
|
2,285
|
|
|
$
|
897
|
|
|
$
|
5,497
|
|
1
|
Includes $
514 million
and $
299 million
of purchased annuity contracts as of
December 31, 2011
and
2010
, respectively.
|
|
Corporate
Bonds and
Debt Securities
|
|
|
Hedge
Funds/Limited
Partnerships
|
|
|
Real Estate
|
|
|
Equity
Securities
|
|
|
Mutual,
Pooled and
Commingled
Funds
|
|
|
Other
|
|
|
Total
|
|
|||||||
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of year
|
$
|
10
|
|
|
$
|
80
|
|
|
$
|
153
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
288
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Related to assets still held at the reporting date
|
—
|
|
|
19
|
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|
10
|
|
|
37
|
|
|||||||
Related to assets sold during the year
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(3
|
)
|
|||||||
Purchases, sales and settlements — net
|
(10
|
)
|
|
7
|
|
|
(36
|
)
|
|
10
|
|
|
(4
|
)
|
|
288
|
|
|
255
|
|
|||||||
Business combinations and divestitures — net
1
|
—
|
|
|
213
|
|
|
121
|
|
|
—
|
|
|
24
|
|
|
5
|
|
|
363
|
|
|||||||
Transfers in or out of Level 3 — net
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(4
|
)
|
|||||||
Translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
|||||||
Balance at end of year
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
242
|
|
|
$
|
15
|
|
|
$
|
20
|
|
|
$
|
303
|
|
2
|
$
|
897
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at beginning of year
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
242
|
|
|
$
|
15
|
|
|
$
|
20
|
|
|
$
|
303
|
|
|
$
|
897
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Related to assets still held at the reporting date
|
—
|
|
|
9
|
|
|
35
|
|
|
4
|
|
|
(5
|
)
|
|
61
|
|
|
104
|
|
|||||||
Related to assets sold during the year
|
—
|
|
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(2
|
)
|
|||||||
Purchases, sales and settlements — net
|
—
|
|
|
26
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(16
|
)
|
|
146
|
|
|
153
|
|
|||||||
Business combinations and divestitures — net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Transfers in or out of Level 3 — net
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|||||||
Translation
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
5
|
|
|||||||
Balance at end of year
|
$
|
—
|
|
|
$
|
349
|
|
|
$
|
270
|
|
|
$
|
20
|
|
|
$
|
5
|
|
|
$
|
518
|
|
2
|
$
|
1,162
|
|
1
|
Primarily related to our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2.
|
2
|
Includes $
514 million
and $
299 million
of purchased annuity contracts as of
December 31, 2011
and
2010
, respectively.
|
|
December 31, 2011
|
|
December 31, 2010
|
||||||||||||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
1
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
1
|
|
|
Total
|
|
||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S.-based companies
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||||||
International-based companies
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government bonds
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Corporate bonds and debt securities
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
Mutual, pooled and commingled funds
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Hedge funds / limited partnerships
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||||
Real estate
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Total
|
$
|
83
|
|
|
$
|
98
|
|
|
$
|
4
|
|
|
$
|
185
|
|
|
$
|
89
|
|
|
$
|
95
|
|
|
$
|
3
|
|
|
$
|
187
|
|
1
|
Level 3 assets are not a significant portion of other postretirement benefit plan assets.
|
|
Severance Pay
and Benefits
|
|
|
Outside Services
1
|
|
|
Other
Direct Costs
|
|
|
Total
|
|
||||
2009
|
|
|
|
|
|
|
|
||||||||
Accrued balance as of January 1
|
$
|
14
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
17
|
|
Costs incurred
|
41
|
|
|
47
|
|
|
19
|
|
|
107
|
|
||||
Payments
|
(37
|
)
|
|
(41
|
)
|
|
(12
|
)
|
|
(90
|
)
|
||||
Noncash and exchange
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||
Accrued balance as of December 31
|
$
|
18
|
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
31
|
|
2010
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
71
|
|
|
$
|
58
|
|
|
$
|
61
|
|
|
$
|
190
|
|
Payments
|
(30
|
)
|
|
(61
|
)
|
|
(54
|
)
|
|
(145
|
)
|
||||
Noncash and exchange
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Accrued balance as of December 31
|
$
|
59
|
|
|
$
|
6
|
|
|
$
|
9
|
|
|
$
|
74
|
|
2011
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
59
|
|
|
$
|
17
|
|
|
$
|
80
|
|
|
$
|
156
|
|
Payments
|
(50
|
)
|
|
(21
|
)
|
|
(71
|
)
|
|
(142
|
)
|
||||
Noncash and exchange
|
(20
|
)
|
|
1
|
|
|
(9
|
)
|
|
(28
|
)
|
||||
Accrued balance as of December 31
|
$
|
48
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
60
|
|
1
|
Primarily relate to expenses in connection with legal, outplacement and consulting activities.
|
|
Severance Pay
and Benefits
|
|
|
Outside Services
1
|
|
|
Other
Direct Costs
|
|
|
Total
|
|
||||
2010
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
45
|
|
|
$
|
42
|
|
|
$
|
48
|
|
|
$
|
135
|
|
Payments
|
(1
|
)
|
|
(33
|
)
|
|
(34
|
)
|
|
(68
|
)
|
||||
Noncash and exchange
|
4
|
|
|
—
|
|
|
(2
|
)
|
|
2
|
|
||||
Accrued balance as of December 31
|
$
|
48
|
|
|
$
|
9
|
|
|
$
|
12
|
|
|
$
|
69
|
|
2011
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
40
|
|
|
$
|
91
|
|
|
$
|
227
|
|
|
$
|
358
|
|
Payments
|
(40
|
)
|
|
(89
|
)
|
|
(210
|
)
|
|
(339
|
)
|
||||
Noncash and exchange
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Accrued balance as of December 31
|
$
|
48
|
|
|
$
|
11
|
|
|
$
|
32
|
|
|
$
|
91
|
|
1
|
Primarily relate to expenses in connection with legal, outplacement and consulting activities.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
Concentrate operations
1
|
39
|
%
|
|
51
|
%
|
|
54
|
%
|
Finished products operations
2,3
|
61
|
|
|
49
|
|
|
46
|
|
Net operating revenues
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
1
|
Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
3
|
Includes net operating revenues related to the acquired CCE North American business from October 2, 2010.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
United States
|
$
|
18,699
|
|
|
$
|
10,629
|
|
|
$
|
8,011
|
|
International
|
27,843
|
|
|
24,490
|
|
|
22,979
|
|
|||
Net operating revenues
|
$
|
46,542
|
|
|
$
|
35,119
|
|
|
$
|
30,990
|
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
United States
|
$
|
8,043
|
|
|
$
|
8,251
|
|
|
$
|
3,115
|
|
International
|
6,896
|
|
|
6,476
|
|
|
6,446
|
|
|||
Property, plant and equipment — net
|
$
|
14,939
|
|
|
$
|
14,727
|
|
|
$
|
9,561
|
|
|
Eurasia &
Africa
|
|
|
Europe
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Pacific
|
|
|
Bottling
Investments
|
|
|
Corporate
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|||||||||
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
2,689
|
|
|
$
|
4,777
|
|
|
$
|
4,403
|
|
|
$
|
20,559
|
|
|
$
|
5,454
|
|
1
|
$
|
8,501
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
46,542
|
|
Intersegment
|
152
|
|
|
697
|
|
|
287
|
|
|
12
|
|
|
384
|
|
|
90
|
|
|
—
|
|
|
(1,622
|
)
|
|
—
|
|
|||||||||
Total net revenues
|
2,841
|
|
|
5,474
|
|
|
4,690
|
|
|
20,571
|
|
|
5,838
|
|
|
8,591
|
|
|
159
|
|
|
(1,622
|
)
|
|
46,542
|
|
|||||||||
Operating income (loss)
|
1,091
|
|
|
3,090
|
|
|
2,815
|
|
|
2,318
|
|
|
2,151
|
|
|
224
|
|
|
(1,535
|
)
|
|
—
|
|
|
10,154
|
|
|||||||||
Interest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
483
|
|
|
—
|
|
|
483
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
417
|
|
|
—
|
|
|
417
|
|
|||||||||
Depreciation and amortization
|
39
|
|
|
109
|
|
|
63
|
|
|
1,065
|
|
|
106
|
|
|
403
|
|
|
169
|
|
|
—
|
|
|
1,954
|
|
|||||||||
Equity income (loss) — net
|
(3
|
)
|
|
33
|
|
|
20
|
|
|
6
|
|
|
1
|
|
|
646
|
|
|
(13
|
)
|
|
—
|
|
|
690
|
|
|||||||||
Income (loss) before income taxes
|
1,089
|
|
|
3,134
|
|
|
2,832
|
|
|
2,325
|
|
|
2,154
|
|
|
897
|
|
|
(992
|
)
|
|
—
|
|
|
11,439
|
|
|||||||||
Identifiable operating assets
2
|
1,245
|
|
|
3,204
|
|
3
|
2,446
|
|
|
33,422
|
|
|
2,085
|
|
|
8,905
|
|
3
|
20,293
|
|
|
—
|
|
|
71,600
|
|
|||||||||
Investments
4
|
284
|
|
|
243
|
|
|
475
|
|
|
26
|
|
|
133
|
|
|
7,140
|
|
|
73
|
|
|
—
|
|
|
8,374
|
|
|||||||||
Capital expenditures
|
86
|
|
|
38
|
|
|
105
|
|
|
1,364
|
|
|
92
|
|
|
1,039
|
|
|
196
|
|
|
—
|
|
|
2,920
|
|
|||||||||
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
2,426
|
|
|
$
|
4,424
|
|
|
$
|
3,880
|
|
|
$
|
11,140
|
|
|
$
|
4,941
|
|
1
|
$
|
8,216
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
35,119
|
|
Intersegment
|
130
|
|
|
825
|
|
|
241
|
|
|
65
|
|
|
330
|
|
|
97
|
|
|
—
|
|
|
(1,688
|
)
|
|
—
|
|
|||||||||
Total net revenues
|
2,556
|
|
|
5,249
|
|
|
4,121
|
|
|
11,205
|
|
|
5,271
|
|
|
8,313
|
|
|
92
|
|
|
(1,688
|
)
|
|
35,119
|
|
|||||||||
Operating income (loss)
|
980
|
|
|
2,976
|
|
|
2,405
|
|
|
1,520
|
|
|
2,048
|
|
|
227
|
|
|
(1,707
|
)
|
|
—
|
|
|
8,449
|
|
|||||||||
Interest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317
|
|
|
—
|
|
|
317
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
733
|
|
|
—
|
|
|
733
|
|
|||||||||
Depreciation and amortization
|
31
|
|
|
106
|
|
|
54
|
|
|
575
|
|
|
101
|
|
|
430
|
|
|
146
|
|
|
—
|
|
|
1,443
|
|
|||||||||
Equity income (loss) — net
|
18
|
|
|
33
|
|
|
24
|
|
|
(4
|
)
|
|
1
|
|
|
971
|
|
|
(18
|
)
|
|
—
|
|
|
1,025
|
|
|||||||||
Income (loss) before income taxes
|
1,000
|
|
|
3,020
|
|
|
2,426
|
|
|
1,523
|
|
|
2,049
|
|
|
1,205
|
|
|
3,020
|
|
|
—
|
|
|
14,243
|
|
|||||||||
Identifiable operating assets
2
|
1,278
|
|
|
2,724
|
|
3
|
2,298
|
|
|
32,793
|
|
|
1,827
|
|
|
8,398
|
|
3
|
16,018
|
|
|
—
|
|
|
65,336
|
|
|||||||||
Investments
4
|
291
|
|
|
243
|
|
|
379
|
|
|
57
|
|
|
123
|
|
|
6,426
|
|
|
66
|
|
|
—
|
|
|
7,585
|
|
|||||||||
Capital expenditures
|
59
|
|
|
33
|
|
|
94
|
|
|
711
|
|
|
101
|
|
|
942
|
|
|
275
|
|
|
—
|
|
|
2,215
|
|
|||||||||
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
1,977
|
|
|
$
|
4,308
|
|
|
$
|
3,700
|
|
|
$
|
8,191
|
|
|
$
|
4,533
|
|
1
|
$
|
8,193
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
30,990
|
|
Intersegment
|
220
|
|
|
895
|
|
|
182
|
|
|
80
|
|
|
342
|
|
|
127
|
|
|
—
|
|
|
(1,846
|
)
|
|
—
|
|
|||||||||
Total net revenues
|
2,197
|
|
|
5,203
|
|
|
3,882
|
|
|
8,271
|
|
|
4,875
|
|
|
8,320
|
|
|
88
|
|
|
(1,846
|
)
|
|
30,990
|
|
|||||||||
Operating income (loss)
|
810
|
|
|
2,946
|
|
|
2,042
|
|
|
1,699
|
|
|
1,887
|
|
|
179
|
|
|
(1,332
|
)
|
|
—
|
|
|
8,231
|
|
|||||||||
Interest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
249
|
|
|
—
|
|
|
249
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355
|
|
|
—
|
|
|
355
|
|
|||||||||
Depreciation and amortization
|
27
|
|
|
132
|
|
|
52
|
|
|
365
|
|
|
95
|
|
|
424
|
|
|
141
|
|
|
—
|
|
|
1,236
|
|
|||||||||
Equity income (loss) — net
|
(1
|
)
|
|
20
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(23
|
)
|
|
785
|
|
|
5
|
|
|
—
|
|
|
781
|
|
|||||||||
Income (loss) before income taxes
|
810
|
|
|
2,976
|
|
|
2,039
|
|
|
1,701
|
|
|
1,866
|
|
|
980
|
|
|
(1,426
|
)
|
|
—
|
|
|
8,946
|
|
|||||||||
Identifiable operating assets
2
|
1,155
|
|
|
3,047
|
|
3
|
2,480
|
|
|
10,941
|
|
|
1,929
|
|
|
9,140
|
|
3
|
13,224
|
|
|
—
|
|
|
41,916
|
|
|||||||||
Investments
4
|
331
|
|
|
214
|
|
|
248
|
|
|
8
|
|
|
82
|
|
|
5,809
|
|
|
63
|
|
|
—
|
|
|
6,755
|
|
|||||||||
Capital expenditures
|
70
|
|
|
68
|
|
|
123
|
|
|
458
|
|
|
91
|
|
|
826
|
|
|
357
|
|
|
—
|
|
|
1,993
|
|
1
|
Net operating revenues in Japan represented approximately
8 percent
of consolidated net operating revenues in
2011
,
9 percent
in
2010
and
10 percent
in
2009
.
|
2
|
Principally cash and cash equivalents, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets and property, plant and equipment — net.
|
3
|
Property, plant and equipment — net in Germany represented approximately
10 percent
of consolidated property, plant and equipment — net in
2011
,
10 percent
in
2010
and
18 percent
in
2009
.
|
4
|
Principally equity method investments, available-for-sale securities and nonmarketable investments in bottling companies.
|
•
|
Operating
income
(loss) and income (loss) before income taxes were reduced by $
12 million
for Eurasia and Africa, $
25 million
for Europe, $
4 million
for Latin America, $
374 million
for North America, $
4 million
for Pacific, $
89 million
for Bottling Investments and $
164 million
for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives as well as costs associated with the merger of Arca and Contal. Refer to
Note 18
for additional information on our productivity, integration and restructuring initiatives. Refer to
Note 17
for additional information related to the merger of Arca and Contal.
|
•
|
Operating
income
(loss) and income (loss) before income taxes were reduced by $
82 million
for Pacific and $
2 million
for North America due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. Refer to
Note 17
.
|
•
|
Operating
income (loss) and income (loss) before income taxes were reduced by $
10 million
for Corporate due to charges associated with the floods in Thailand that impacted the Company's supply chain operations in the region. Refer to
Note 17
.
|
•
|
Equity
income (loss) — net and income (loss) before income taxes were reduced by $
53 million
for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was increased by a net $
417 million
for Corporate, primarily due to the gain the Company recognized as a result of the merger of Arca and Contal. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was increased by a net $
122 million
for Corporate, primarily due to gains the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the year at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was increased by $
102 million
for Corporate, primarily due to the gain on the sale of our investment in Embonor, a bottling partner with operations primarily in Chile. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was reduced by $
41 million
for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to
Note 16
and
Note 17
.
|
•
|
Income
(loss) before income taxes was reduced by $
17 million
for Corporate due to other-than-temporary impairments of certain available-for-sale securities. Refer to
Note 16
and
Note 17
.
|
•
|
Income
(
loss) before income taxes was reduced by $
9 million
for Corporate due to the net charge we recognized on the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's North American business as well as the early extinguishment of certain other long-term debt. Refer to
Note 10
.
|
•
|
Income
(loss) before income taxes was reduced by $
5 million
for Corporate due to the finalization of working capital adjustments related to the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to
Note 2
and
Note 17
.
|
•
|
Operating
income
(loss) and income (loss) before income taxes were reduced by $
7 million
for Eurasia and Africa, $
50 million
for Europe, $
133 million
for North America, $
22 million
for Pacific, $
122 million
for Bottling Investments and $
485 million
for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives; charitable donations; transaction costs incurred in connection with our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE; and other charges related to bottling activities in Eurasia. Refer to
Note 17
.
|
•
|
Operating
income
(loss) and income (loss) before income taxes were reduced by $
74 million
for North America due to the acceleration of expense associated with certain share-based replacement awards issued in connection with our acquisition of CCE's North American business. Refer to
Note 12
.
|
•
|
Equity
income
(loss) — net and income (loss) before income taxes were reduced by $
66 million
for Bottling Investments. This net charge was primarily attributable to the Company's proportionate share of unusual tax charges, asset impairments, restructuring charges and transaction costs recorded by equity method investees, which were partially offset by our proportionate share of a foreign currency remeasurement gain recorded by an equity method investee. The components of the net charge were individually insignificant. Refer to
Note 17
.
|
•
|
Income (
loss
) before income taxes was reduced by $
23 million
for Bottling Investments and $
25 million
for Corporate due to other-than-temporary impairments and a donation of preferred shares in one of our equity method investees. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was increased by $
4,978 million
for Corporate due to the remeasurement of our equity investment in CCE to fair value upon the close of the transaction. Refer to
Note 2
.
|
•
|
Income
(loss) before income taxes was increased by $
597 million
for Corporate due to the gain on the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to
Note 2
.
|
•
|
Income
(loss) before income taxes was reduced by $
342 million
for Corporate related to the premiums paid to repurchase the long-term debt and the costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer. Refer to
Note 10
.
|
•
|
Income
(
loss) before income taxes was reduced by $
265 million
for Corporate due to charges related to preexisting relationships with CCE. These charges primarily related to the write-off of our investment in infrastructure programs with CCE. Refer to
Note 2
.
|
•
|
Income
(loss) before income taxes was reduced by $
103 million
for Corporate due to the remeasurement of our Venezuelan subsidiary's net assets. Refer to
Note 1
.
|
•
|
Income (
loss
) before income taxes was increased by $
23 million
for Corporate due to the gain on the sale of
50 percent
of our investment in Leão Junior. Refer to
Note 17
.
|
•
|
Operating
income (loss) and income (loss) before income taxes were reduced by $
4 million
for Eurasia and Africa, $
7 million
for Europe, $
31 million
for North America, $
1 million
for Pacific, $
141 million
for Bottling Investments and $
129 million
for Corporate, primarily as a result of the Company's ongoing productivity, integration and restructuring initiatives and asset impairments. Refer to
Note 17
.
|
•
|
Equity
income
(loss) — net and income (loss) before income taxes were reduced by $
84 million
for Bottling Investments and $
2 million
for Corporate, primarily attributable to the Company's proportionate share of asset impairment and restructuring charges recorded by certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) before income taxes was increased by $
44 million
for Corporate due to realized gains on the sale of
equity
securities that were classified as available-for-sale. In 2008, the Company recognized an other-than-temporary impairment related to these securities. Refer to
Note 17
.
|
•
|
Income
(loss) before income taxes was reduced by $
27 million
for Corporate due to an other-than-temporary impairment of a cost method investment. Refer to
Note 17
.
|
Year Ended December 31,
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||
(Increase) decrease in trade accounts receivable
|
$
|
(562
|
)
|
|
$
|
(41
|
)
|
|
$
|
(404
|
)
|
(Increase) decrease in inventories
|
(447
|
)
|
|
182
|
|
|
(50
|
)
|
|||
(Increase) decrease in prepaid expenses and other assets
|
(350
|
)
|
|
(148
|
)
|
|
(332
|
)
|
|||
Increase (decrease) in accounts payable and accrued expenses
|
63
|
|
|
656
|
|
|
319
|
|
|||
Increase (decrease) in accrued taxes
|
(132
|
)
|
|
(266
|
)
|
|
81
|
|
|||
Increase (decrease) in other liabilities
|
(465
|
)
|
|
(13
|
)
|
|
(178
|
)
|
|||
Net change in operating assets and liabilities
|
$
|
(1,893
|
)
|
|
$
|
370
|
|
|
$
|
(564
|
)
|
![]() |
|
![]() |
Muhtar Kent
|
|
Kathy N. Waller
|
Chairman of the Board of Directors,
Chief Executive Officer and President
February 23, 2012
|
|
Vice President and Controller
February 23, 2012
|
|
|
|
![]() |
|
|
Gary P. Fayard
Executive Vice President
and Chief Financial Officer
February 23, 2012
|
|
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
Full Year
|
|
|
|||||
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2011
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
10,517
|
|
|
$
|
12,737
|
|
|
$
|
12,248
|
|
|
$
|
11,040
|
|
|
$
|
46,542
|
|
|
Gross profit
|
6,568
|
|
|
7,748
|
|
|
7,373
|
|
|
6,637
|
|
|
28,326
|
|
|
|||||
Net income attributable to shareowners of The Coca-Cola Company
|
1,900
|
|
|
2,797
|
|
|
2,221
|
|
|
1,654
|
|
|
8,572
|
|
|
|||||
Basic net income per share
|
$
|
0.83
|
|
|
$
|
1.22
|
|
|
$
|
0.97
|
|
|
$
|
0.73
|
|
|
$
|
3.75
|
|
|
Diluted net income per share
|
$
|
0.82
|
|
|
$
|
1.20
|
|
|
$
|
0.95
|
|
|
$
|
0.72
|
|
|
$
|
3.69
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
7,525
|
|
|
$
|
8,674
|
|
|
$
|
8,426
|
|
|
$
|
10,494
|
|
1
|
$
|
35,119
|
|
1
|
Gross profit
|
4,984
|
|
|
5,719
|
|
|
5,508
|
|
|
6,215
|
|
1
|
22,426
|
|
1
|
|||||
Net income attributable to shareowners of The Coca-Cola Company
|
1,614
|
|
|
2,369
|
|
|
2,055
|
|
|
5,771
|
|
1
|
11,809
|
|
1
|
|||||
Basic net income per share
|
$
|
0.70
|
|
|
$
|
1.03
|
|
|
$
|
0.89
|
|
|
$
|
2.50
|
|
1
|
$
|
5.12
|
|
1
|
Diluted net income per share
|
$
|
0.69
|
|
|
$
|
1.02
|
|
|
$
|
0.88
|
|
|
$
|
2.46
|
|
1
|
$
|
5.06
|
|
1,2
|
1
|
Amounts include the impacts of our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2.
|
2
|
The sum of the quarterly diluted net income per share amounts does not agree to the full year diluted net income per share. We calculate net income per share based on the weighted-average number of outstanding shares during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
|
•
|
Charges
of $1 million for Eurasia and Africa, $1 million for Europe, $111 million for North America, $1 million for Pacific, $21 million for Bottling Investments and $27 million for Corporate due to the Company's ongoing productivity, integration and restructuring initiatives. Refer to Note 17 and Note 18.
|
•
|
Gain
of $102 million for Corporate due to the sale of our investment in Embonor, a bottling partner with operations primarily in Chile. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to Note 17.
|
•
|
Charge
of $79 million for Pacific associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. This charge was primarily related to the Company's charitable donations in support of relief and rebuilding efforts in Japan and funds provided to certain bottling partners in the affected regions. Refer to Note 17.
|
•
|
Charge
of $19 million for North America due to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business. Refer to Note 17.
|
•
|
Charge
of $4 million for Corporate related to premiums paid to repurchase certain long-term debt assumed in connection with our acquisition of CCE's North American business. Refer to Note 10.
|
•
|
Charge
of $4 million for Bottling Investments, primarily attributable to the Company's proportionate share of restructuring charges recorded by an equity method investee. Refer to Note 17.
|
•
|
A
net
tax charge of $3 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $8 million for Eurasia and Africa, $2 million for Europe, $1 million for Latin America, $66 million for North
|
•
|
A
net
gain of $417 million for Corporate, primarily due to the merger of Arca and Contal. Refer to Note 16 and Note 17.
|
•
|
Charge
of $38 million for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 16 and Note 17.
|
•
|
Charge
of $4 million for Pacific due to the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. Refer to Note 17.
|
•
|
A
net
gain of $1 million for Corporate related to the repurchase of certain long-term debt we assumed in connection with our acquisition of CCE's North American business. Refer to Note 10.
|
•
|
A
net
tax charge of $16 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $2 million for Europe, $2 million for Latin America, $52 million for North America, $2 million for Pacific, $14 million for Bottling Investments and $26 million for Corporate, due to the Company's ongoing productivity, integration and restructuring initiatives as well as costs associated with the merger of Arca and Contal. Refer to Note 17 and Note 18.
|
•
|
Charge
of $36 million for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17.
|
•
|
A net
charge
of $5 million for Corporate due to the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's North American business. Refer to Note 10.
|
•
|
Charge
of
$5 million for Corporate due to the finalization of working capital adjustments related to the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE. Refer to Note 17.
|
•
|
Charge
of $3 million for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 16 and Note 17.
|
•
|
A
net
charge of $1 million associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. This net charge included a charge of $2 million for North America and a benefit of $1 million for Pacific. Refer to Note 17.
|
•
|
A
net
tax benefit of $4 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $3 million for Eurasia and Africa, $20 million for Europe, $1 million for Latin America, $145 million for North America, $1 million for Pacific, $31 million for Bottling Investments and $64 million for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives. Refer to Note 17 and Note 18.
|
•
|
A net
gain
of $122 million for Corporate, primarily due to gains the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the period at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17.
|
•
|
Charge
of
$17 million for Corporate due to other-than-temporary impairments of certain available-for-sale securities. Refer to Note 16 and Note 17.
|
•
|
Charge
of
$13 million for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17.
|
•
|
Charge
of $10 million for Corporate due to the floods in Thailand that impacted the Company's supply chain operations in the region. Refer to Note 17.
|
•
|
Charge
of $1 million for Corporate due to the early extinguishment of certain long-term debt. This debt existed prior to the Company's acquisition of CCE's North American business. Refer to Note 10.
|
•
|
A net
tax
benefit of $22 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $1 million for Eurasia and Africa, $28 million for Europe, $4 million for North America, $33 million for Bottling Investments and $30 million for Corporate, primarily due to the Company's ongoing productivity initiatives, restructuring charges and transaction costs. Refer to Note 17 and Note 18.
|
•
|
Charge
of $103 million for Corporate due to the remeasurement of our Venezuelan subsidiary's net assets. Refer to Note 17.
|
•
|
Charge
of $29 million for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairment charges and restructuring costs recorded by equity method investees. Refer to Note 17.
|
•
|
Charges
of $23 million for Bottling Investments and $3 million for Corporate, primarily due to other-than-temporary impairments of available-for-sale securities. Refer to Note 17.
|
•
|
A
tax
charge of $14 million related to new legislation that changed the tax treatment of Medicare Part D subsidies. Refer to Note 14.
|
•
|
A
net
tax benefit of $1 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges of $2 million for Eurasia and Africa, $2 million for Europe, $6 million for North America, $5 million for
Pacific,
$11 million for Bottling Investments and $52 million for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives and transaction costs. Refer to Note 17 and Note 18.
|
•
|
Charge
of $16 million for Bottling Investments, primarily attributable to the Company's proportionate share of unusual tax charges and transaction costs recorded by equity method investees. Refer to Note 17.
|
•
|
A net
tax
charge of $16 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $1 million for Eurasia and Africa, $13 million for Europe, $8 million for Pacific, $12 million for Bottling Investments and $68 million for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives and transaction costs incurred in connection with our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. These charges were partially offset by a $2 million benefit for North America due to the refinement of previously established restructuring accruals. Refer to Note 17 and Note 18.
|
•
|
Charge
of
$10 million for Bottling Investments. This net charge was primarily attributable to the Company's proportionate share of transaction costs recorded by CCE, which was partially offset by our proportionate share of a foreign currency remeasurement gain recorded by an equity method investee. The components of the net charge were individually insignificant. Refer to Note 17.
|
•
|
Gain
of
$23 million for Corporate due to the sale of 50 percent of our investment in Leão Junior. Refer to Note 2 and Note 17.
|
•
|
A net
tax
charge of $13 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges
of $3 million for Eurasia and Africa, $7 million for Europe, $125 million for North America, $9 million for Pacific, $66 million for Bottling Investments and $335 million for Corporate, primarily due to the Company's productivity, integration and restructuring initiatives, charitable donations, transaction costs incurred in connection with our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE and other charges related to bottling activities in Eurasia. Refer to Note 17 and Note 18.
|
•
|
Benefit
of
$4,978 million for Corporate due to the remeasurement of our equity investment in CCE to fair value upon the close of the transaction. Refer to Note 2 and Note 17.
|
•
|
Gain of
$
597 million for Corporate due to the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2 and Note 17.
|
•
|
Charge
of
$342 million for Corporate related to the premiums paid to repurchase certain long-term debt and the costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer. Refer to Note 10.
|
•
|
Charge
of
$265 million for Corporate due to expenses related to preexisting relationships with CCE. These expenses primarily related to the write-off of our investment in infrastructure programs with CCE. Refer to Note 2 and Note 17.
|
•
|
Charge
of
$74 million for North America due to the acceleration of expense associated with certain share-based replacement awards issued in connection with our acquisition of CCE's North American business. Refer to Note 17.
|
•
|
Charge
of
$22 million for Corporate due to an other-than-temporary impairment of an equity method investment and a donation of preferred shares in one of our equity method investees. Refer to Note 16 and Note 17.
|
•
|
Charge
of
$20 million for North America due to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's North American business. Refer to Note 17.
|
•
|
Charge
of
$11 million for Bottling Investments, primarily attributable to the Company's proportionate share of restructuring charges recorded by equity method investees. Refer to Note 17.
|
•
|
A tax
charge
of $260 million primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested. Refer to Note 14.
|
•
|
A tax b
e
nefit of $44 million primarily due to the impact that tax rate changes had on certain deferred tax assets. Refer to Note 14.
|
•
|
A ne
t
tax charge of $38 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
(a)
|
The following documents are filed as part of this report:
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
•
|
may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
2.1.1
|
|
Business Separation and Merger Agreement, dated as of February 25, 2010, by and among Coca-Cola Enterprises Inc., International CCE, Inc., The Coca-Cola Company and Cobalt Subsidiary LLC.
|
|
|
|
Exhibit I
|
Tax Sharing Agreement
|
|
|
Exhibit II
|
Employee Matters Agreement
|
|
|
Exhibit III
|
Form of Corporate Name Letter
|
|
|
Exhibit IV
|
Form of Transition Services Agreement
|
|
|
Exhibit V-1
|
Bottler's Agreement Jurisdictions
|
|
|
Exhibit V-2
|
Form of Bottler's Agreement
|
|
|
— incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on March 3, 2010. In accordance with Item 601(b)(2) of Regulation S-K, certain schedules have not been filed. The Company hereby agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request.
|
|
2.1.2
|
|
Amendment No. 1, dated as of September 6, 2010, to the Business Separation and Merger Agreement, dated as of February 25, 2010, by and among Coca-Cola Enterprises Inc., International CCE Inc., the Company and Cobalt Subsidiary LLC — incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on September 7, 2010.
|
|
2.2
|
|
Tax Sharing Agreement, dated as of February 25, 2010, by and among The Coca-Cola Company, Coca-Cola Enterprises Inc. and International CCE, Inc. (included as Exhibit I to the Business Separation and Merger Agreement) — incorporated herein by reference to Exhibit 2.2 of the Company's Current Report on Form 8-K filed on March 3, 2010.
|
|
2.3
|
|
Employee Matters Agreement, dated as of February 25, 2010, by and among The Coca-Cola Company, Coca-Cola Enterprises Inc. and International CCE, Inc. (included as Exhibit II to the Business Separation and Merger Agreement) — incorporated herein by reference to Exhibit 2.3 of the Company's Current Report on Form 8-K filed on March 3, 2010.
|
|
2.4
|
|
Letter Agreement, dated as of February 25, 2010, by and between the Company and Coca-Cola Enterprises Inc. — incorporated herein by reference to Exhibit 2.4 of the Company's Current Report on Form 8-K filed on March 3, 2010.
|
|
2.5
|
|
Share Purchase Agreement, dated as of March 20, 2010, by and among The Coca-Cola Company, Bottling Holdings (Luxembourg) s.a.r.l., Coca-Cola Enterprises Inc. and International CCE, Inc.
|
|
|
|
Exhibit I
|
Form of Corporate Name Letter
|
|
|
Exhibit II
|
Form of Bottler's Agreement
|
|
|
— incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on March 22, 2010. In accordance with Item 601(b)(2) of Regulation S-K, certain schedules have not been filed. The Company hereby agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request.
|
|
3.1
|
|
Certificate of Incorporation of the Company, including Amendment of Certificate of Incorporation, effective May 1, 1996 — incorporated herein by reference to Exhibit 3 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 1996.
|
|
3.2
|
|
By-Laws of the Company, as amended and restated through April 17, 2008 — incorporated herein by reference to Exhibit 3.2 of the Company's Quarterly Report on Form 10-Q for the quarter ended June 27, 2008.
|
|
4.1
|
|
As permitted by the rules of the SEC, the Company has not filed certain instruments defining the rights of holders of long-term debt of the Company or consolidated subsidiaries under which the total amount of securities authorized does not exceed 10 percent of the total assets of the Company and its consolidated subsidiaries. The Company agrees to furnish to the SEC, upon request, a copy of any omitted instrument.
|
|
4.2
|
|
Amended and Restated Indenture, dated as of April 26, 1988, between the Company and Deutsche Bank Trust Company Americas, as successor to Bankers Trust Company, as trustee — incorporated herein by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-3 (Registration No. 33-50743) filed on October 25, 1993.
|
4.3
|
|
First Supplemental Indenture, dated as of February 24, 1992, to Amended and Restated Indenture, dated as of April 26, 1988, between the Company and Deutsche Bank Trust Company Americas, as successor to Bankers Trust Company, as trustee — incorporated herein by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-3 (Registration No. 33-50743) filed on October 25, 1993.
|
|
4.4
|
|
Second Supplemental Indenture, dated as of November 1, 2007, to Amended and Restated Indenture, dated as of April 26, 1988, as amended, between the Company and Deutsche Bank Trust Company Americas, as successor to Bankers Trust Company, as trustee — incorporated herein by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K filed on March 5, 2009.
|
|
4.5
|
|
Form of Note for 5.350% Notes due November 15, 2017 — incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed October 31, 2007.
|
|
4.6
|
|
Form of Note for 3.625% Notes due March 15, 2014 — incorporated herein by reference to Exhibit 4.4 of the Company's Current Report on Form 8-K filed on March 5, 2009.
|
|
4.7
|
|
Form of Note for 4.875% Notes due March 15, 2019 — incorporated herein by reference to Exhibit 4.5 of the Company's Current Report on Form 8-K filed on March 5, 2009.
|
|
4.8
|
|
Form of Note for Floating Rate Notes due May 15, 2012 — incorporated herein by reference to Exhibit 4.4 to the Company's Current Report on Form 8-K filed November 18, 2010.
|
|
4.9
|
|
Form of Note for 0.750% Notes due November 15, 2013 — incorporated herein by reference to Exhibit 4.5 to the Company's Current Report on Form 8-K filed November 18, 2010.
|
|
4.10
|
|
Form of Note for 1.500% Notes due November 15, 2015 — incorporated herein by reference to Exhibit 4.6 to the Company's Current Report on Form 8-K filed November 18, 2010.
|
|
4.10.1
|
|
Form of Note for 1.500% Notes due November 15, 2015 — incorporated herein by reference to Exhibit 4.7 to the Company's Current Report on Form 8-K filed November 18, 2010.
|
|
4.11
|
|
Form of Exchange and Registration Rights Agreement among the Company, the representatives of the initial purchasers of the Notes and the other parties named therein — incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed August 8, 2011.
|
|
4.12
|
|
Form of Note for 1.80% Notes due September 1, 2016 — incorporated herein by reference to Exhibit 4.13 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
|
|
4.13
|
|
Form of Note for 3.30% Notes due September 1, 2021 — incorporated herein by reference to Exhibit 4.14 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
|
|
10.1
|
|
Supplemental Disability Plan of the Company, as amended and restated effective January 1, 2003 — incorporated herein by reference to Exhibit 10.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
10.2
|
|
Performance Incentive Plan of the Company, as amended and restated as of February 16, 2011 — incorporated herein by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K filed February 17, 2011.*
|
|
10.3.1
|
|
1999 Stock Option Plan of the Company, as amended and restated through February 16, 2011 — incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed February 17, 2011.*
|
|
10.3.2
|
|
Form of Stock Option Agreement in connection with the 1999 Stock Option Plan of the Company — incorporated herein by reference to Exhibit 99.1 of the Company's Current Report on Form 8-K filed February 14, 2007.*
|
|
10.3.3
|
|
Form of Stock Option Agreement in connection with the 1999 Stock Option Plan of the Company, as adopted December 12, 2007 — incorporated herein by reference to Exhibit 10.8 of the Company's Current Report on Form 8-K filed February 21, 2008.*
|
|
10.3.4
|
|
Form of Stock Option Agreement in connection with the 1999 Stock Option Plan of the Company, as adopted February 18, 2009 — incorporated herein by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K filed February 18, 2009.*
|
|
10.4.1
|
|
2002 Stock Option Plan of the Company, amended and restated through February 18, 2009 — incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed February 18, 2009.*
|
|
10.4.2
|
|
Form of Stock Option Agreement in connection with the 2002 Stock Option Plan, as amended — incorporated herein by reference to Exhibit 99.1 of the Company's Current Report on Form 8-K filed on December 8, 2004.*
|
|
10.4.3
|
|
Form of Stock Option Agreement in connection with the 2002 Stock Option Plan, as adopted December 12, 2007 — incorporated herein by reference to Exhibit 10.9 of the Company's Current Report on Form 8-K filed on February 21, 2008.*
|
10.4.4
|
|
Form of Stock Option Agreement in connection with the 2002 Stock Option Plan, as adopted February 18, 2009 — incorporated herein by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K filed on February 18, 2009.*
|
|
10.5.1
|
|
2008 Stock Option Plan of the Company, as amended and restated, effective February 16, 2011 — incorporated herein by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on February 17, 2011.*
|
|
10.5.2
|
|
Form of Stock Option Agreement for grants under the Company's 2008 Stock Option Plan — incorporated herein by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed July 16, 2008.*
|
|
10.5.3
|
|
Form of Stock Option Agreement for grants under the Company's 2008 Stock Option Plan, as adopted February 18, 2009 — incorporated herein by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K filed February 18, 2009.*
|
|
10.6
|
|
1983 Restricted Stock Award Plan of the Company, as amended and restated through February 16, 2011 — incorporated herein by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K filed on February 17, 2011.*
|
|
10.7.1
|
|
1989 Restricted Stock Award Plan of the Company, as amended and restated through February 16, 2011 — incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed February 17, 2011.*
|
|
10.7.2
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) in connection with the 1989 Restricted Stock Award Plan of the Company, as adopted December 12, 2007 — incorporated herein by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K filed February 21, 2008.*
|
|
10.7.3
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) for France in connection with the 1989 Restricted Stock Award Plan of the Company, as adopted December 12, 2007 — incorporated herein by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K filed February 21, 2008.*
|
|
10.7.4
|
|
Form of Restricted Stock Agreement in connection with The Coca-Cola Company 1989 Restricted Stock Award Plan, as adopted February 17, 2010 — incorporated herein by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on February 18, 2010. *
|
|
10.7.5
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) in connection with The Coca-Cola Company 1989 Restricted Stock Award Plan, as adopted February 17, 2010 — incorporated herein by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on February 18, 2010.*
|
|
10.7.6
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) for France in connection with The Coca-Cola Company 1989 Restricted Stock Award Plan, as adopted February 17, 2010 — incorporated herein by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K filed on February 18, 2010.*
|
|
10.7.7
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) in connection with the 1989 Restricted Stock Award Plan of the Company, as adopted February 16, 2011 — incorporated herein by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K filed February 17, 2011.*
|
|
10.7.8
|
|
Form of Restricted Stock Agreement (Performance Share Unit Agreement) for France in connection with the 1989 Restricted Stock Award Plan of the Company, as adopted February 16, 2011 — incorporated herein by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K filed February 17, 2011.*
|
|
10.8.1
|
|
Compensation Deferral & Investment Program of the Company, as amended, including Amendment Number Four, dated November 28, 1995 — incorporated herein by reference to Exhibit 10.13 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995.*
|
|
10.8.2
|
|
Amendment Number Five to the Compensation Deferral & Investment Program of the Company, effective as of January 1, 1998 — incorporated herein by reference to Exhibit 10.8.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997.*
|
|
10.8.3
|
|
Amendment Number Six to the Compensation Deferral & Investment Program of the Company, dated as of January 12, 2004, effective January 1, 2004 — incorporated herein by reference to Exhibit 10.9.3 of the Company's Annual Report on Form 10-K for the year ended December 31, 2003.*
|
|
10.9
|
|
[RESERVED]
|
|
10.10
|
|
Supplemental Pension Plan, Amended and Restated Effective January 1, 2010 — incorporated herein by reference to Exhibit 10.10.6 of the Company's Annual Report on Form 10-K for the year ended December 31, 2009.*
|
|
10.11
|
|
The Coca-Cola Company Supplemental 401(k) Plan (f/k/a the Supplemental Thrift Plan of the Company), Amended and Restated Effective January 1, 2012, dated December 14, 2011.*
|
|
10.12
|
|
The Coca-Cola Company Supplemental Cash Balance Plan, effective January 1, 2012.*
|
10.13
|
|
The Coca-Cola Company Compensation and Deferred Compensation Plan for Non-Employee Directors, effective January 1, 2009 — incorporated herein by reference to Exhibit 10.8 of the Company's Quarterly Report on Form 10-Q for the quarter ended April 3, 2009.*
|
|
10.14
|
|
Long-Term Performance Incentive Plan of the Company, as amended and restated effective December 13, 2006 — incorporated herein by reference to Exhibit 10.14 of the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.15
|
|
Executive Incentive Plan of the Company, adopted as of February 14, 2001 — incorporated herein by reference to Exhibit 10.19 of the Company's Annual Report on Form 10-K for the year ended December 31, 2000.*
|
|
10.16
|
|
Deferred Compensation Plan of the Company, as amended and restated December 8, 2010 — incorporated herein by reference to Exhibit 10.16 of the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.17
|
|
The Coca-Cola Export Corporation Employee Share Plan, effective as of March 13, 2002 — incorporated herein by reference to Exhibit 10.31 of the Company's Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
10.18
|
|
Employees' Savings and Share Ownership Plan of Coca-Cola Ltd., effective as of January 1, 1990 — incorporated herein by reference to Exhibit 10.32 of the Company's Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
10.19
|
|
Share Purchase Plan — Denmark, effective as of 1991 — incorporated herein by reference to Exhibit 10.33 of the Company's Annual Report on Form 10-K for the year ended December 31, 2002.*
|
|
10.20.1
|
|
The Coca-Cola Company Benefits Plan for Members of the Board of Directors, as amended and restated through April 14, 2004 — incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.*
|
|
10.20.2
|
|
Amendment Number One to the Company's Benefits Plan for Members of the Board of Directors, dated December 16, 2005 — incorporated herein by reference to Exhibit 10.31.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 2005.*
|
|
10.21
|
|
Employment Agreement, dated as of February 20, 2003, between the Company and José Octavio Reyes — incorporated herein by reference to Exhibit 10.43 of the Company's Annual Report on Form 10-K for the year ended December 31, 2004.*
|
|
10.22
|
|
The Coca-Cola Company Severance Pay Plan, As Amended and Restated Effective January 1, 2012, dated December 14, 2011.*
|
|
10.23
|
|
Order Instituting Cease and Desist Proceedings, Making Findings and Imposing a Cease-and-Desist Order Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 — incorporated herein by reference to Exhibit 99.2 of the Company's Current Report on Form 8-K filed on April 18, 2005.
|
|
10.24
|
|
Offer of Settlement of The Coca-Cola Company — incorporated herein by reference to Exhibit 99.2 of the Company's Current Report on Form 8-K filed on April 18, 2005.
|
|
10.25
|
|
Employment Agreement, effective as of May 1, 2005, between Refreshment Services S.A.S. and Dominique Reiniche, dated September 7, 2006 — incorporated herein by reference to Exhibit 99.1 of the Company's Current Report on Form 8-K filed on September 12, 2006.*
|
|
10.26
|
|
Refreshment Services S.A.S. Defined Benefit Plan, dated September 25, 2006 — incorporated herein by reference to Exhibit 10.3 of the Company's Quarterly Report on Form 10-Q for the quarter ended September 29, 2006.*
|
|
10.27
|
|
Share Purchase Agreement among Coca-Cola South Asia Holdings, Inc. and San Miguel Corporation, San Miguel Beverages (L) Pte Limited and San Miguel Holdings Limited in connection with the Company's purchase of Coca-Cola Bottlers Philippines, Inc., dated December 23, 2006 — incorporated herein by reference to Exhibit 99.1 of the Company's Current Report on Form 8-K filed on December 29, 2006.
|
|
10.28
|
|
Cooperation Agreement between Coca-Cola South Asia Holdings, Inc. and San Miguel Corporation in connection with the Company's purchase of Coca-Cola Bottlers Philippines, Inc., dated December 23, 2006 — incorporated herein by reference to Exhibit 99.2 of the Company's Current Report on Form 8-K filed on December 29, 2006.
|
|
10.29.1
|
|
Offer Letter, dated July 20, 2007, from the Company to Joseph V. Tripodi, including Agreement on Confidentiality, Non-Competition and Non-Solicitation, dated July 20, 2007 — incorporated herein by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2007.*
|
|
10.29.2
|
|
Agreement between the Company and Joseph V. Tripodi, dated December 15, 2008 — incorporated herein by reference to Exhibit 10.47.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 2008.*
|
10.30
|
|
Letter, dated July 17, 2008, to Muhtar Kent — incorporated herein by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed July 21, 2008.*
|
|
10.31
|
|
Separation Agreement between the Company and Robert Leechman, dated February 24, 2009, including form of Full and Complete Release and Agreement on Competition, Trade Secrets and Confidentiality — incorporated herein by reference to Exhibit 10.9 of the Company's Quarterly Report on Form 10-Q for the quarter ended April 3, 2009.*
|
|
10.32
|
|
Separation Agreement between the Company and Cynthia McCague, dated June 22, 2009 (effective as of July 22, 2009), including form of Full and Complete Release and Agreement on Competition, Trade Secrets and Confidentiality and summary of anticipated consulting agreement — incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarter ended October 2, 2009.*
|
|
10.33
|
|
Letter of Understanding between the Company and Ceree Eberly, dated October 26, 2009, including Agreement on Confidentiality, Non-Competition and Non-Solicitation, dated November 1, 2009 — incorporated herein by reference to Exhibit 10.47 of the Company's Annual Report on Form 10-K for the year ended December 31, 2009.*
|
|
10.34.1
|
|
The Coca-Cola Export Corporation Overseas Retirement Plan, as amended and restated, effective October 1, 2007 — incorporated herein by reference to Exhibit 10.55 of the Company's Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.34.2
|
|
Amendment Number One to The Coca-Cola Export Corporation Overseas Retirement Plan, as Amended and Restated Effective October 1, 2007, dated September 29, 2011.*
|
|
10.34.3
|
|
Amendment Number Two to The Coca-Cola Export Corporation Overseas Retirement Plan, as Amended and Restated Effective October 1, 2007, dated November 14, 2011.*
|
|
10.35.1
|
|
The Coca-Cola Export Corporation International Thrift Plan, as amended and restated, effective January 1, 2011 — incorporated herein by reference to Exhibit 10.8 of the Company's Quarterly Report on Form 10-Q for the quarter ended April 1, 2011.*
|
|
10.35.2
|
|
Amendment Number One to The Coca-Cola Export Corporation International Thrift Plan, as Amended and Restated, Effective January 1, 2011, dated September 20, 2011.*
|
|
10.36
|
|
Letter Agreement, dated as of June 7, 2010, between The Coca-Cola Company and Dr Pepper Seven-Up, Inc. — incorporated herein by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on June 7, 2010.
|
|
10.37
|
|
[RESERVED]
|
|
10.38
|
|
Coca-Cola Enterprises Inc. Stock Deferral Plan — incorporated herein by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-3 (Registration No. 333-169724) filed on October 1, 2010.*
|
|
10.39
|
|
Coca-Cola Enterprises Inc. 1997 Stock Option Plan — incorporated herein by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.40
|
|
Coca-Cola Enterprises Inc. 1999 Stock Option Plan — incorporated herein by reference to Exhibit 99.2 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.41
|
|
Coca-Cola Enterprises Inc. 2001 Restricted Stock Award Plan — incorporated herein by reference to Exhibit 99.3 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.42
|
|
Coca-Cola Enterprises Inc. 2001 Stock Option Plan — incorporated herein by reference to Exhibit 99.4 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.43
|
|
Coca-Cola Enterprises Inc. 2004 Stock Award Plan — incorporated herein by reference to Exhibit 99.5 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.44.1
|
|
Coca-Cola Enterprises Inc. 2007 Incentive Award Plan — incorporated herein by reference to Exhibit 99.6 to the Company's Registration Statement on Form S-8 (Registration No. 333-169722) filed on October 1, 2010.*
|
|
10.44.2
|
|
Form of 2007 Stock Option Agreement (Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan — incorporated herein by reference to Exhibit 10.32 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2007.*
|
|
10.44.3
|
|
Form of Stock Option Agreement (Chief Executive Officer and Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan for Awards after October 29, 2008 — incorporated herein by reference to Exhibit 10.16.4 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
10.44.4
|
|
Form of 2007 Restricted Stock Unit Agreement (Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan — incorporated herein by reference to Exhibit 10.16.7 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.44.5
|
|
Form of 2007 Performance Share Unit Agreement (Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan — incorporated herein by reference to Exhibit 10.16.10 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.44.6
|
|
Form of Performance Share Unit Agreement (Chief Executive Officer and Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan for Awards after October 29, 2008 — incorporated herein by reference to Exhibit 10.16.12 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.45.1
|
|
Coca-Cola Refreshments USA, Inc. Supplemental Matched Employee Savings and Investment Plan (Amended and Restated Effective January 1, 2010) — incorporated herein by reference to Exhibit 10.2 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2009.*
|
|
10.45.2
|
|
First Amendment to the Coca-Cola Refreshments USA, Inc. Supplemental Matched Employee Savings and Investment Plan (Amended and Restated Effective January 1, 2010), dated September 24, 2010 — incorporated herein by reference to Exhibit 10.45.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.45.3
|
|
Second Amendment to the Coca-Cola Refreshments USA, Inc. Supplemental Matched Employee Savings and Investment Plan (Amended and Restated Effective January 1, 2010), dated November 3, 2010 — incorporated herein by reference to Exhibit 10.45.3 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.45.4
|
|
Third Amendment to the Coca-Cola Refreshments USA, Inc. Supplemental Matched Employee Savings and Investment Plan, Effective January 1, 2010), dated February 15, 2011.*
|
|
10.45.5
|
|
Fourth Amendment to the Coca-Cola Refreshments USA, Inc. Supplemental Matched Employee Savings and Investment Plan, effective December 31, 2011, dated December 14, 2011.*
|
|
10.46.1
|
|
Coca-Cola Refreshments Executive Pension Plan, dated December 13, 2010 (Amended and Restated Effective January 1, 2011) — incorporated herein by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.46.2
|
|
Amendment Number One to the Coca-Cola Refreshments Executive Pension Plan (Amended and Restated Effective January 1, 2011), dated as of July 14, 2011— incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.*
|
|
10.46.3
|
|
Amendment Number Two to the Coca-Cola Refreshments Executive Pension Plan, effective December 31, 2011, dated December 14, 2011.*
|
|
10.47
|
|
Summary Plan Description for Coca-Cola Refreshments USA, Inc. Executive Long-Term Disability Plan — incorporated by reference to Exhibit 10.18 of Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2006.*
|
|
10.48.1
|
|
Coca-Cola Refreshments USA, Inc. Executive Severance Plan (Amended and Restated Effective December 31, 2008) — incorporated herein by reference to Exhibit 10.5.4 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.48.2
|
|
First Amendment to the Coca-Cola Refreshments USA, Inc. Executive Severance Plan (Amended and Restated Effective December 31, 2008), dated as of November 3, 2010 — incorporated herein by reference to Exhibit 10.48.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.48.3
|
|
Form Agreement in connection with the Coca-Cola Refreshments USA, Inc. Executive Severance Plan (Amended and Restated Effective September 25, 2008) — incorporated herein by reference to Exhibit 10.5.5 to Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2008.*
|
|
10.48.4
|
|
Amendment Number Two to the Coca-Cola Refreshments USA, Inc. Executive Severance Plan (Amended and Restated Effective December 31, 2008), dated as of July 14, 2011 — incorporated herein by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.*
|
|
10.49
|
|
Amendment to certain Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Employee Benefit Plans and Equity Plans, effective December 6, 2010 — incorporated herein by reference to Exhibit 10.49 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
10.50
|
|
Offer Letter, dated October 21, 2010, from the Company to Steven A. Cahillane, including Agreement on Confidentiality, Non-Competition and Non-Solicitation, dated November 10, 2010 — incorporated herein by reference to Exhibit 10.50 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.*
|
|
10.51
|
|
Offer Letter, dated January 5, 2011, from the Company to Guy Wollaert, including Agreement on Confidentiality, Non-Competition and Non-Solicitation, dated June 23, 2008 — incorporated herein by reference to Exhibit 10.9 of the Company's Quarterly Report on Form 10-Q for the quarter ended April 1, 2011.*
|
|
12.1
|
|
Computation of Ratios of Earnings to Fixed Charges for the years ended December 31, 2011, 2010, 2009, 2008 and 2007.
|
|
21.1
|
|
List of subsidiaries of the Company as of December 31, 2011.
|
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
24.1
|
|
Powers of Attorney of Officers and Directors signing this report.
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification, executed by Muhtar Kent, Chairman of the Board of Directors, Chief Executive Officer and President of The Coca-Cola Company.
|
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification, executed by Gary P. Fayard, Executive Vice President and Chief Financial Officer of The Coca-Cola Company.
|
|
32.1
|
|
Certifications required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350), executed by Muhtar Kent, Chairman of the Board of Directors, Chief Executive Officer and President of The Coca-Cola Company and by Gary P. Fayard, Executive Vice President and Chief Financial Officer of The Coca-Cola Company.
|
|
101
|
|
The following financial information from The Coca-Cola Company's Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareowners' Equity and (v) the Notes to Consolidated Financial Statements.
|
*
|
Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this report.
|
|
THE COCA-COLA COMPANY
|
|
|||
|
(Registrant)
|
|
|||
|
By:
|
|
/s/ Muhtar Kent
|
|
|
|
|
|
Muhtar Kent
Chairman of the Board of Directors,
Chief Executive Officer and President
|
|
|
|
|
|
Date:
|
February 23, 2012
|
|
/s/ Muhtar Kent
|
|
*
|
Muhtar Kent
Chairman of the Board of Directors,
Chief Executive Officer,
President and a Director
(Principal Executive Officer)
|
|
Richard M. Daley
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
/s/ Gary P. Fayard
|
|
*
|
Gary P. Fayard
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
|
Barry Diller
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
/s/ Kathy N. Waller
|
|
*
|
Kathy N. Waller
Vice President and Controller
(Principal Accounting Officer)
|
|
Evan G. Greenberg
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
*
|
Herbert A. Allen
Director
|
|
Alexis M. Herman
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
*
|
Ronald W. Allen
Director
|
|
Donald R. Keough
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
*
|
Howard G. Buffett
Director
|
|
Robert A. Kotick
Director |
|
|
|
February 23, 2012
|
|
February 23, 2012
|
*
|
|
*
|
Maria Elena Lagomasino
Director
|
|
Peter V. Ueberroth
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
*
|
Donald F. McHenry
Director
|
|
Jacob Wallenberg
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
*
|
Sam Nunn
Director
|
|
James B. Williams
Director
|
|
|
|
February 23, 2012
|
|
February 23, 2012
|
|
|
|
*
|
|
|
James D. Robinson III
Director
|
|
|
|
|
|
February 23, 2012
|
|
|
*By:
|
|
/s/ Gloria K. Bowden
|
|
|
Gloria K. Bowden
Attorney-in-fact
|
|
|
|
|
|
February 23, 2012
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Costco Wholesale Corporation | COST |
Darden Restaurants, Inc. | DRI |
Dollar General Corporation | DG |
McDonald's Corporation | MCD |
Sears Holdings Corporation | SHLDQ |
Suppliers
Supplier name | Ticker |
---|---|
Anheuser-Busch InBev SA/NV | BUD |
Danaher Corporation | DHR |
Thermo Fisher Scientific Inc. | TMO |
PepsiCo, Inc. | PEP |
Ball Corporation | BLL |
Illinois Tool Works Inc. | ITW |
Dow Inc. | DOW |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|