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 September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions):



	Eurasia & Africa		Europe		Latin America		North America		Pacific		Bottling Investments		Corporate			Eliminations			Consolidated
2013
Net operating revenues:
Third party	$	669	$	1,232	$	1,208	$	5,715	$	1,368	$	1,811	$	27		$	—		$	12,030
Intersegment	—		188		22		4		128		21		—			(363		)	—
Total net revenues	669		1,420		1,230		5,719		1,496		1,832		27			(363		)	12,030
Operating income (loss)	231		742		720		803		575		22		(621		)	—			2,472
Income (loss) before income taxes	228		755		719		805		585		214		74			—			3,380
Identifiable operating assets	1,340		3,567		2,672		34,278		1,848		6,836		27,356			—			77,897
Noncurrent investments	1,160		104		525		44		140		9,486		76			—			11,535
2012
Net operating revenues:
Third party	$	698	$	1,124	$	1,171	$	5,669	$	1,470	$	2,182	$	26		$	—		$	12,340
Intersegment	—		165		55		1		176		26		—			(423		)	—
Total net revenues	698		1,289		1,226		5,670		1,646		2,208		26			(423		)	12,340
Operating income (loss)	244		698		734		832		613		44		(372		)	—			2,793
Income (loss) before income taxes	248		716		734		838		616		269		(337		)	—			3,084
Identifiable operating assets	1,373		3,012		2,576		33,906		2,303		9,374		23,960			—			76,504
Noncurrent investments	1,143		275		556		21		126		7,953		76			—			10,150
As of December 31, 2012
Identifiable operating assets	$	1,299	$	2,976	$	2,759	$	34,114	$	2,163	$	9,648	$	22,767		$	—		$	75,726
Noncurrent investments	1,155		271		539		39		127		8,253		64			—			10,448

During the three months ended September 27, 2013, 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 Europe, $53 million for North America, $2 million for Pacific, $45 million for Bottling Investments and $41 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11.


•	Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14.


•	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 and Note 10.


•	Income (loss) before income taxes was increased by $30 million for Corporate due to a gain recognized on the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. Refer to Note 10 and Note 14.


•	Income (loss) before income taxes was increased by a net $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 10.

During the three months ended September 28, 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 $48 million for North America, $1 million for Pacific, $14 million for Bottling Investments and $10 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Pacific and $5 million for Corporate due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives. Operating income (loss) and income (loss) before income taxes were increased by $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11.


•	Operating income (loss) and income (loss) before income taxes were reduced by $9 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. Refer to Note 10.


•	Income (loss) before income taxes was reduced by $1 million for Latin America, $1 million for North America, $2 million for Pacific and was increased by $1 million for Eurasia and Africa and $3 million for Europe 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.


•	Income (loss) before income taxes was reduced by a net $10 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.

Information about our Company's operations as of and for the nine months ended September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions):



	Eurasia & Africa		Europe		Latin America		North America		Pacific		Bottling Investments		Corporate			Eliminations			Consolidated
2013
Net operating revenues:
Third party	$	2,103	$	3,545	$	3,504	$	16,306	$	4,185	$	6,047	$	124		$	—		$	35,814
Intersegment	—		520		169		13		431		61		—			(1,194		)	—
Total net revenues	2,103		4,065		3,673		16,319		4,616		6,108		124			(1,194		)	35,814
Operating income (loss)	845		2,261		2,209		1,875		2,024		186		(1,277		)	—			8,123
Income (loss) before income taxes	868		2,318		2,213		1,879		2,042		677		(748		)	—			9,249
2012
Net operating revenues:
Third party	$	2,041	$	3,492	$	3,381	$	16,375	$	4,423	$	6,742	$	108		$	—		$	36,562
Intersegment	—		488		176		13		498		66		—			(1,241		)	—
Total net revenues	2,041		3,980		3,557		16,388		4,921		6,808		108			(1,241		)	36,562
Operating income (loss)	806		2,290		2,164		2,039		2,089		169		(961		)	—			8,596
Income (loss) before income taxes	821		2,340		2,164		2,066		2,088		750		(797		)	—			9,432

During the nine months ended September 27, 2013, the results of our operating segments were impacted by the following items:

•

Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Pacific, $86 million for Bottling Investments and $97 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Pacific and $1 million for Corporate due to the refinement of previously established accruals 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 $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14.


•	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 and Note 10.


•	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.


•	Income (loss) before income taxes was reduced by $114 million for Corporate due to a loss related to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. Refer to Note 10 and Note 14.


•	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 at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14.


•	Income (loss) before income taxes was reduced by a net $25 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.


•	Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized as a result of the early extinguishment of certain long-term debt. Refer to Note 6.

During the nine months ended September 28, 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 $157 million for North America, $1 million for Pacific, $45 million for Bottling Investments and $18 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $3 million for Europe, $1 million for Pacific and $5 million for Corporate due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives. Operating income (loss) and income (loss) before income taxes were increased by $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11.


•	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. Refer to Note 10.


•	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.


•	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 period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14.


•	Income (loss) before income taxes was increased by a net $33 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.


•	Income (loss) before income taxes was reduced by $2 million for Eurasia and Africa, $3 million for Europe, $3 million for Latin America, $1 million for North America and $5 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 10.