On October 2, 2010, The Coca-Cola Company acquired the 67 percent of CCE’s North
American business that was not already owned by the company for consideration of $6.84
billion that included:
• The company’s 33 percent indirect ownership interest in CCE’s European operations.
• Cash consideration.
• Replacement awards issued to certain current and former employees of CCE’s North American
and corporate operations.
Access Coca-Cola’s 2010 10-K annual report and answer the following.
1. How did Coca-Cola allocate the acquisition-date fair value of CCE among the assets acquired
and liabilities assumed?
2. What are employee replacement awards? How did Coca-Cola account for the replacement
award value provided to the former employees of CCE?
3. How did Coca-Cola account for its 33 percent interest in CCE prior to the acquisition of the 67
percent not already owned by Coca-Cola?
4. Upon acquisition of the additional 67 percent interest, how did Coca-Cola account for the
change in fair value of its original 33 percent ownership interest?