Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v2.4.0.6
Operating Segments
 3 Months Ended
Mar. 30, 2012
Operating Segments  
Operating Segments
Operating Segments
Information about our Company's operations as of and for the three months ended March 30, 2012, and April 1, 2011, by operating segment, is as follows (in millions):
 
Eurasia
& Africa

Europe

Latin
America

North
America

Pacific

Bottling
Investments

Corporate

Eliminations

Consolidated

2012
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
650

$
1,054

$
1,127

$
4,917

$
1,275

$
2,084

$
30

$
—

$
11,137

Intersegment
34

150

59

4

104

19

—

(370
)
—

Total net revenues
684

1,204

1,186

4,921

1,379

2,103

30

(370
)
11,137

Operating income (loss)
295

695

744

451

573

35

(284
)
—

2,509

Income (loss) before income taxes
296

708

743

467

571

169

(229
)
—

2,725

Identifiable operating assets
1,421

3,276

2,667

33,932

1,986

9,439

22,265

—

74,986

Noncurrent investments
304

251

535

22

132

7,593

74

—

8,911

2011
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
622

$
1,072

$
1,082

$
4,684

$
1,141

$
1,888

$
28

$
—

$
10,517

Intersegment
34

152

72

3

88

19

—

(368
)
—

Total net revenues
656

1,224

1,154

4,687

1,229

1,907

28

(368
)
10,517

Operating income (loss)
265

714

716

464

443

8

(326
)
—

2,284

Income (loss) before income taxes
268

720

728

464

444

129

(237
)
—

2,516

Identifiable operating assets
1,323

3,201

2,499

33,809

1,808

8,602

17,228

—

68,470

Noncurrent investments
316

254

425

28

122

6,378

65

—

7,588

As of December 31, 2011
 
 
 
 
 
 
 
 
 
Identifiable operating assets
$
1,245

$
3,204

$
2,446

$
33,422

$
2,085

$
8,905

$
20,293

$
—

$
71,600

Noncurrent investments
284

243

475

26

133

7,140

73

—

8,374


During the three months ended March 30, 2012, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $61 million for North America, $15 million for Bottling Investments and $3 million for Corporate due to the Company's productivity and reinvestment program as well as other ongoing restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Europe due to the reversal of an accrual related to the Company's 2008–2011 productivity initiatives. Refer to Note 10 and Note 11.
•
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 current U.S. license agreement with Nestlé terminating at the end of 2012. Refer to Note 10.
•
Operating income (loss) and income (loss) before income taxes were reduced by $6 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 10.
•
Income (loss) before income taxes was reduced by $3 million for Corporate related to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the ready-to-drink tea category. Refer to Note 10.
•
Income (loss) before income taxes was increased by $44 million for Bottling Investments, primarily attributable to the Company's proportionate share of a transaction gain recorded by an equity method investee, partially offset by our proportionate share of restructuring charges recorded by certain of our equity method investees. Refer to Note 10.
During the three months ended April 1, 2011, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $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 productivity, integration and restructuring initiatives. Refer to Note 11.
•
Operating income (loss) and income (loss) before income taxes were reduced by $79 million for Pacific due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. These charges were 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 10.
•
Income (loss) before income taxes was increased by $102 million for Corporate due to the gain on the sale of our investment in Embonor. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $4 million for Corporate related to premiums paid to repurchase long-term debt.
•
Income (loss) before income taxes was reduced by $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 10.