| Operating Segments |
OPERATING SEGMENTS
Effective January 1, 2013, the Company transferred our India and South West Asia business unit from the Eurasia and Africa operating segment to the Pacific operating segment. Accordingly, all prior period segment information presented herein has been adjusted to reflect this change in our organizational structure.
Information about our Company's operations as of and for the three months ended March 29, 2013, and March 30, 2012, by operating segment, is as follows (in millions):
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Eurasia
& Africa |
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Europe |
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Latin
America |
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North
America |
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Pacific |
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Bottling
Investments |
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Corporate |
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Eliminations |
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Consolidated |
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2013 |
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Net operating revenues: |
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Third party |
$ |
669 |
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$ |
1,020 |
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$ |
1,157 |
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$ |
4,883 |
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$ |
1,244 |
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$ |
2,018 |
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$ |
44 |
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$ |
— |
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$ |
11,035 |
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Intersegment |
— |
|
157 |
|
71 |
|
4 |
|
146 |
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20 |
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— |
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(398 |
) |
— |
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Total net revenues |
669 |
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1,177 |
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1,228 |
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4,887 |
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1,390 |
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2,038 |
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44 |
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(398 |
) |
11,035 |
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Operating income (loss) |
282 |
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683 |
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763 |
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341 |
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602 |
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39 |
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(302 |
) |
— |
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2,408 |
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Income (loss) before income taxes |
289 |
|
694 |
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764 |
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342 |
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604 |
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109 |
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(458 |
) |
— |
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2,344 |
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Identifiable operating assets |
1,366 |
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3,160 |
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2,734 |
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34,591 |
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2,193 |
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8,224 |
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25,105 |
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— |
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77,373 |
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Noncurrent investments |
1,172 |
|
278 |
|
567 |
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38 |
|
128 |
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8,828 |
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66 |
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— |
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11,077 |
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2012 |
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Net operating revenues: |
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Third party |
$ |
615 |
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$ |
1,054 |
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$ |
1,127 |
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$ |
4,917 |
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$ |
1,310 |
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$ |
2,084 |
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$ |
30 |
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$ |
— |
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$ |
11,137 |
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Intersegment |
— |
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150 |
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59 |
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4 |
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138 |
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19 |
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— |
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(370 |
) |
— |
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Total net revenues |
615 |
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1,204 |
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1,186 |
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4,921 |
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1,448 |
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2,103 |
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30 |
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(370 |
) |
11,137 |
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Operating income (loss) |
266 |
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695 |
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744 |
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451 |
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602 |
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35 |
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(284 |
) |
— |
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2,509 |
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Income (loss) before income taxes |
266 |
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708 |
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743 |
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467 |
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601 |
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169 |
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(229 |
) |
— |
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2,725 |
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Identifiable operating assets |
1,304 |
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3,276 |
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2,667 |
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33,932 |
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2,103 |
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9,439 |
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22,265 |
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— |
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74,986 |
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Noncurrent investments |
304 |
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251 |
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535 |
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22 |
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132 |
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7,593 |
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74 |
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— |
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8,911 |
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As of December 31, 2012 |
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Identifiable operating assets |
$ |
1,299 |
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$ |
2,976 |
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$ |
2,759 |
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$ |
34,114 |
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$ |
2,163 |
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$ |
9,648 |
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$ |
22,767 |
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$ |
— |
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$ |
75,726 |
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Noncurrent investments |
1,155 |
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271 |
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539 |
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39 |
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127 |
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8,253 |
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64 |
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— |
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10,448 |
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During the three months ended March 29, 2013, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $82 million for North America, $8 million for Pacific, $21 million for Bottling Investments and $10 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives.
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• |
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 which has operations in Venezuela. Refer to Note 10.
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• |
Income (loss) before income taxes was reduced by $30 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 10.
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During the three months ended March 30, 2012, the results of our operating segments were impacted by the following items:
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• |
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 restructuring initiatives. Refer to Note 10 and Note 11. 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.
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• |
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.
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• |
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.
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• |
Income (loss) before income taxes was reduced by $3 million for Corporate 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 10.
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• |
Income (loss) before income taxes was increased by $44 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 10.
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