The following excerpt is from Coca-Cola Company’s 2017 annual report filed with the SEC.

Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes from continuing operations and certain treasury-related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss before income taxes.

Selected segment data for Coca-Cola Company for the 2017 and 2016 fiscal years follow. Dollar amounts are in millions.

Required

a. Compute the ROI for each of Coke’s geographical segments for each fiscal year. Which segment appears to have the best performance during 2017 based their ROIs? Which segment showed the most improvement from 2016 to 2017?

b. Assuming Coke’s management expects a minimum return of 30 percent, calculate the residual income for each segment for each fiscal year. Which segment appears to have the best performance based on residual income? Which segment showed the most improvement from 2016 to 2017?