Year Ended December 31, | 2013 | 2012 | 2011 | |||||
Concentrate operations1 | 38 | % | 38 | % | 39 | % | ||
Finished product operations2 | 62 | 62 | 61 | |||||
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. |
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
United States | $ | 19,820 | $ | 19,732 | $ | 18,699 | |||||
International | 27,034 | 28,285 | 27,843 | ||||||||
Net operating revenues | $ | 46,854 | $ | 48,017 | $ | 46,542 |
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||
United States | $ | 8,841 | $ | 8,509 | $ | 8,043 | |||||
International | 6,126 | 5,967 | 6,896 | ||||||||
Property, plant and equipment — net | $ | 14,967 | $ | 14,476 | $ | 14,939 |
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||
Net operating revenues: | |||||||||||||||||||||||||||||||||||
Third party | $ | 2,763 | $ | 4,645 | $ | 4,748 | $ | 21,574 | $ | 5,372 | $ | 7,598 | $ | 154 | $ | — | $ | 46,854 | |||||||||||||||||
Intersegment | — | 689 | 191 | 16 | 497 | 78 | — | (1,471 | ) | — | |||||||||||||||||||||||||
Total net revenues | 2,763 | 5,334 | 4,939 | 21,590 | 5,869 | 7,676 | 154 | (1,471 | ) | 46,854 | |||||||||||||||||||||||||
Operating income (loss) | 1,087 | 2,859 | 2,908 | 2,432 | 2,478 | 115 | (1,651 | ) | — | 10,228 | |||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 534 | — | 534 | ||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 463 | — | 463 | ||||||||||||||||||||||||||
Depreciation and amortization | 42 | 86 | 58 | 1,192 | 130 | 335 | 134 | — | 1,977 | ||||||||||||||||||||||||||
Equity income (loss) — net | 22 | 24 | 13 | 2 | 19 | 524 | (2 | ) | — | 602 | |||||||||||||||||||||||||
Income (loss) before income taxes | 1,109 | 2,923 | 2,920 | 2,434 | 2,494 | 679 | (1,082 | ) | — | 11,477 | |||||||||||||||||||||||||
Identifiable operating assets1 | 1,273 | 3,713 | 2 | 2,918 | 33,964 | 1,922 | 7,011 | 2 | 27,742 | — | 78,543 | ||||||||||||||||||||||||
Investments3 | 1,157 | 106 | 545 | 49 | 143 | 9,424 | 88 | — | 11,512 | ||||||||||||||||||||||||||
Capital expenditures | 40 | 34 | 63 | 1,374 | 117 | 643 | 279 | — | 2,550 | ||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||
Net operating revenues: | |||||||||||||||||||||||||||||||||||
Third party | $ | 2,697 | $ | 4,481 | $ | 4,560 | $ | 21,665 | $ | 5,680 | $ | 8,807 | $ | 127 | $ | — | $ | 48,017 | |||||||||||||||||
Intersegment | — | 642 | 271 | 15 | 628 | 88 | — | (1,644 | ) | — | |||||||||||||||||||||||||
Total net revenues | 2,697 | 5,123 | 4,831 | 21,680 | 6,308 | 8,895 | 127 | (1,644 | ) | 48,017 | |||||||||||||||||||||||||
Operating income (loss) | 1,078 | 2,960 | 2,879 | 2,597 | 2,516 | 140 | (1,391 | ) | — | 10,779 | |||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 471 | — | 471 | ||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 397 | — | 397 | ||||||||||||||||||||||||||
Depreciation and amortization | 33 | 100 | 70 | 1,083 | 119 | 406 | 171 | — | 1,982 | ||||||||||||||||||||||||||
Equity income (loss) — net | 20 | 45 | 4 | 13 | 2 | 732 | 3 | — | 819 | ||||||||||||||||||||||||||
Income (loss) before income taxes | 1,101 | 3,015 | 2,882 | 2,624 | 2,523 | 904 | (1,240 | ) | — | 11,809 | |||||||||||||||||||||||||
Identifiable operating assets1 | 1,299 | 2,976 | 2 | 2,759 | 34,114 | 2,163 | 9,648 | 2 | 22,767 | — | 75,726 | ||||||||||||||||||||||||
Investments3 | 1,155 | 271 | 539 | 39 | 127 | 8,253 | 64 | — | 10,448 | ||||||||||||||||||||||||||
Capital expenditures | 51 | 30 | 88 | 1,447 | 107 | 867 | 190 | — | 2,780 | ||||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||||||||||||
Net operating revenues: | |||||||||||||||||||||||||||||||||||
Third party | $ | 2,590 | $ | 4,777 | $ | 4,403 | $ | 20,559 | $ | 5,553 | $ | 8,501 | $ | 159 | $ | — | $ | 46,542 | |||||||||||||||||
Intersegment | — | 697 | 287 | 12 | 536 | 90 | — | (1,622 | ) | — | |||||||||||||||||||||||||
Total net revenues | 2,590 | 5,474 | 4,690 | 20,571 | 6,089 | 8,591 | 159 | (1,622 | ) | 46,542 | |||||||||||||||||||||||||
Operating income (loss) | 1,003 | 3,090 | 2,815 | 2,319 | 2,239 | 224 | (1,517 | ) | — | 10,173 | |||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 483 | — | 483 | ||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 417 | — | 417 | ||||||||||||||||||||||||||
Depreciation and amortization | 30 | 109 | 63 | 1,065 | 115 | 403 | 169 | — | 1,954 | ||||||||||||||||||||||||||
Equity income (loss) — net | (3 | ) | 33 | 20 | 6 | 1 | 646 | (13 | ) | — | 690 | ||||||||||||||||||||||||
Income (loss) before income taxes | 1,001 | 3,134 | 2,832 | 2,327 | 2,242 | 897 | (975 | ) | — | 11,458 | |||||||||||||||||||||||||
Identifiable operating assets1 | 1,160 | 3,204 | 2 | 2,446 | 33,422 | 2,170 | 8,905 | 2 | 20,293 | — | 71,600 | ||||||||||||||||||||||||
Investments3 | 284 | 243 | 475 | 26 | 133 | 7,140 | 73 | — | 8,374 | ||||||||||||||||||||||||||
Capital expenditures | 50 | 38 | 105 | 1,364 | 128 | 1,039 | 196 | — | 2,920 |
1 | Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets and property, plant and equipment — net. |
2 | Property, plant and equipment — net in Germany represented 11 percent of consolidated property, plant and equipment — net in 2013, 10 percent in 2012 and 10 percent in 2011. |
3 | 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 $2 million for Eurasia and Africa, $57 million for Europe, $282 million for North America, $26 million for Pacific, $194 million for Bottling Investments and $121 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $195 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 8 and Note 17. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Pacific due to charges associated with certain of the Company's fixed assets. Refer to Note 17. |
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2. |
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee that has operations in Venezuela. Refer to Note 1 and Note 17. |
• | Income (loss) before income taxes was reduced by a net $114 million for Corporate due to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger into CCEJ. Refer to Note 2 and Note 17. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the year at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was reduced by a net $159 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17. |
• | Income (loss) before income taxes was reduced by $53 million for Corporate due to charges the Company recognized on the early extinguishment of certain long-term debt, including the hedge accounting adjustments reclassified from accumulated other comprehensive income to earnings. Refer to Note 10. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $227 million for North America, $3 million for Pacific, $164 million for Bottling Investments and $38 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $21 million for North America due to costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States for use on citrus products, in orange juice imported from Brazil for distribution in the United States. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. Refer to Note 17. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to changes in the Company's ready-to-drink tea strategy as a result of our U.S. license agreement with Nestlé that terminated at the end of 2012. Refer to Note 17. |
• | Equity income (loss) — net and income (loss) before income taxes were increased by $8 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17. |
• | Income (loss) before income taxes was increased by $185 million for Corporate due to the gain the Company recognized as a result of the merger of Andina and Polar. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on the pending sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA, which was completed in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling operations were classified as held for sale in our consolidated balance sheets. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the year at a per share amount greater than the carrying amount of the Company's per share investment. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was reduced by $16 million for Corporate due to other-than-temporary declines in the fair values of certain cost method investments. Refer to Note 16 and Note 17. |
• | Income (loss) before income taxes was reduced by $1 million for Eurasia and Africa, $4 million for Europe, $2 million for Latin America and $4 million for Pacific due to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the ready-to-drink tea category. Refer to Note 17. |
• | 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 Coca-Cola FEMSA 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 former North America 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 CCE. Refer to Note 2 and Note 17. |