EQUITY METHOD INVESTMENTS
Our consolidated net income includes our Company's proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. The Company's proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statements of income and our carrying value in those investments. Refer to Note 17 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity investee's AOCI.
We eliminate from our financial results all significant intercompany transactions, including the intercompany portion of transactions with equity method investees.
The Company's equity method investments include our ownership interests in Coca-Cola FEMSA, Coca-Cola Hellenic and Coca-Cola Amatil. As of December 31, 2013, we owned 28 percent, 23 percent and 29 percent, respectively, of these companies' outstanding shares. As of December 31, 2013, our investment in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $2,202 million. This difference is not amortized.
A summary of financial information for our equity method investees in the aggregate is as follows (in millions):
|
| | | | | | | | | | | |
Year Ended December 31, | 2013 |
| | 2012 |
| | 2011 |
|
Net operating revenues | $ | 53,038 |
| | $ | 47,087 |
| | $ | 42,472 |
|
Cost of goods sold | 32,377 |
| | 28,821 |
| | 26,271 |
|
Gross profit | $ | 20,661 |
| | $ | 18,266 |
| | $ | 16,201 |
|
Operating income | $ | 4,380 |
| | $ | 4,605 |
| | $ | 4,181 |
|
Consolidated net income | $ | 2,364 |
| | $ | 2,993 |
| | $ | 2,237 |
|
Less: Net income attributable to noncontrolling interests | 62 |
| | 89 |
| | 99 |
|
Net income attributable to common shareowners | $ | 2,302 |
| | $ | 2,904 |
| | $ | 2,138 |
|
Equity income (loss) — net | $ | 602 |
| | $ | 819 |
| | $ | 690 |
|
|
| | | | | | | |
December 31, | 2013 |
| | 2012 |
|
Current assets | $ | 19,229 |
| | $ | 16,054 |
|
Noncurrent assets | 40,427 |
| | 32,687 |
|
Total assets | $ | 59,656 |
| | $ | 48,741 |
|
Current liabilities | $ | 14,386 |
| | $ | 12,004 |
|
Noncurrent liabilities | 17,779 |
| | 12,272 |
|
Total liabilities | $ | 32,165 |
| | $ | 24,276 |
|
Equity attributable to shareowners of investees | $ | 26,668 |
| | $ | 23,827 |
|
Equity attributable to noncontrolling interests | 823 |
| | 638 |
|
Total equity | $ | 27,491 |
| | $ | 24,465 |
|
Company equity investment | $ | 10,393 |
| | $ | 9,216 |
|
Net sales to equity method investees, the majority of which are located outside the United States, were $9,178 million, $7,082 million and $6,874 million in 2013, 2012 and 2011, respectively. Total payments, primarily marketing, made to equity method investees were $1,807 million, $1,587 million and $1,147 million in 2013, 2012 and 2011, respectively. In addition, purchases of finished products from equity method investees were $415 million, $392 million and $430 million in 2013, 2012 and 2011, respectively.
If valued at the December 31, 2013, quoted closing prices of shares actively traded on stock markets, the value of our equity method investments in publicly traded bottlers would have exceeded our carrying value by $9,155 million.
Net Receivables and Dividends from Equity Method Investees
Total net receivables due from equity method investees were $1,308 million and $1,280 million as of December 31, 2013 and 2012, respectively. The total amount of dividends received from equity method investees was $401 million, $393 million and $421 million for the years ended December 31, 2013, 2012 and 2011, respectively. Dividends received included a $35 million and $60 million special dividend from Coca-Cola Hellenic during 2012 and 2011, respectively. We classified the receipt of these cash dividends in cash flows from operating activities because our cumulative equity in earnings from Coca-Cola Hellenic exceeded the cumulative distributions received; therefore, the dividends were deemed to be a return on our investment and not a return of our investment.
