Subsequent Event |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Event |
SUBSEQUENT EVENTS
Coca-Cola Beverages Africa Limited
In October 2016, Anheuser-Busch InBev ("ABI") acquired SABMiller plc, including its controlling interest in CCBA. Subsequently, the Company announced that it has chosen to exercise its contractual right to acquire ABI's controlling interest in CCBA at fair value in order to implement our long-term strategic plan in CCBA's territories with other partners. The Company will negotiate the terms of the transaction with ABI according to the contractual parameters. The transaction is subject to regulatory approval. The Company will also negotiate with potential partners to refranchise CCBA as soon as practical following regulatory approval of the transaction with ABI.
North America Refranchising
In October 2016, additional bottling territories in North America met the criteria to be classified as held for sale. Therefore, we are required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the estimated sale prices, which will result in an estimated loss of $248 million in the fourth quarter of 2016. This loss is primarily related to the write-down of intangible assets due to the accounting treatment for the contingent consideration that will be received in exchange for the grant of the exclusive territory rights. The Company expects these territories to be refranchised at various times throughout 2016 and 2017. Refer to Note 2 for additional information about North America refranchising.
The following table presents information related to the major classes of assets and liabilities related to these additional territories, which are included in the Bottling Investments operating segment (in millions):
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