The Coca-Cola Company is organized geographically and defines reportable operating segments as regions of the world. The following information was extracted from Note 19 Operating Segments in the Coca-Cola Company 2017 Annual Report: Page 406 Information about our Company's continuing operations by operating segment as of and for the years ended December 31, 2017, 2016, and 2015, is as follows (in millions): Europe, Middle Latin North Asia Bottling East & Africa America America Pacific Investments Corporate Eliminations Consolidated 2017 $4.767 $ 138 $ $35,368 409 42 $7,332 42 7,374 3,646 $3.956 73 4,029 2.214 $8,651 1.986 10,637 2,578 $10,524 81 10.605 (1,117) (2,549) (2,549) 138 35.410 5,176 2.163 (1,983) 633 44 -- 841 Net operating revenues: Third party Intersegment Total net operating revenues Operating income (loss) Interest income Interest expense Depreciation and amortization Equity income (loss)-net Income (loss) from continuing operations before income taxes Identifiable operating assets Investments Capital expenditures 7,501 677 841 1.260 1,071 91 37 411 (3) 65 11 454 878 202 140 48 (3) 2,307 3,706 5,475 1,238 81 2,211 1,896 891 55 17,619 112 541 2.179 2.072 177 50 (2,345) 4,493 15.998 662 (1,316) 27,060 3,536 286 6,742 58,615 21.952 1,675 2016 $4,788 $ 127 $ $41.863 506 $7,014 264 7,278 3,676 $3,746 73 3.819 1,951 $6,437 3,773 10.210 2,582 $ 19,751 134 19.885 (137) (4.755) (4,755) 5.294 2.224 5 132 (1,670) 615 41.863 8.626 27 733 Net operating revenues: Third party Intersegment Total net operating revenues Operating income (loss) Interest income Interest expense Depreciation and amortization Equity income (loss)-net Income (loss) from continuing operations before income taxes Identifiable operating assets Investments Capital expenditures 642 733 1,787 835 93 35 80 426 (17) 1,013 648 140 115 62 18 9 2,560 8.136 3,749 4,067 1,302 1,966 1,785 804 16,566 109 2,338 2.024 164 107 (1,923) 15.973 11,456 1,329 (454) 29.606 3,414 281 70,021 17,249 2.262 62 45 438 2015 $ 156 $ $44,294 $3.999 75 $22.885 178 10 $6,966 621 7,587 3.875 $5,581 4,259 9,840 2,366 $4,707 545 5,252 2.189 (5,688) (5,688) 4.074 2,169 23.063 124 166 (1,995) 604 44,294 8.728 613 856 9 856 Net operating revenues: Third party Intersegment Total net operating revenues Operating income (loss) Interest income Interest expense Depreciation and amortization Equity income (loss-net Income (loss) from continuing operations before income taxes Identifiable operating assets Investments Capital expenditures 103 41 85 157 ( 373 (18) 1,211 426 1.970 489 39 (7) 9 40 3,923 4,156 1,138 54 2,164 1,627 657 2.356 16.396 107 2.207 1,639 (427) 22,688 8,084 (618) 27,702 5,644 272 9,605 74,208 15,788 2,553 158 70 377 81 1,699 Required 1. Calculate the following measures for each of Coca-Cola's operating segments (excluding Bottling Investments and Page 407 Corporate): Percentage of total net operating revenues, 2016 and 2017. Percentage change in total net operating revenues, 2015 to 2016 and 2016 to 2017. Operating income as a percentage of total net operating revenues (profit margin), 2013 and 2014. 2. Determine whether you believe Coca-Cola should attempt to expand its operations in a particular region of the world to increase net operating revenues and operating income. 3. List any additional information you would like to have to conduct your analysis. Page 408 . Chapter 8 - Segment and Interim Reporting Analysis Case 2Coca-Cola Geographic Segment Information (60 minutes) 1. The ratios required to be calculated for the Coca-Cola Company are as follows: % 2016 % 2017 7,374 14.80% 3,819 Percentage of total net revenues Europe, Middle East & Africa Latin America North America Asia Pacific Total 38.38% 100.00% 100.00% 2016 to 2017 2015 to 2016 -4.07% Percentage change in total net revenues Europe, Middle East & Africa Latin America North America Asia Pacific 4.18% 2017 2016 Operating income as a percentage of total net revenues (profit margin) Europe, Middle East & Africa Latin America North America Asia Pacific 51.09% 24.24%