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33
Results of Operations by Segment
We report our business in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The
key financial measures management uses to assess the performance of our segments are net sales and SOP. The following tables
set forth net sales and SOP for our segments for 2011 and 2010, as well as the other amounts necessary to reconcile our total
segment results to our consolidated results presented in accordance with U.S. GAAP (in millions):
For the Year Ended
December 31,
2011 2010
Segment Results — Net sales
Beverage Concentrates $ 1,193 $ 1,156
Packaged Beverages 4,292 4,098
Latin America Beverages 418 382
Net sales $ 5,903 $ 5,636
For the Year Ended
December 31,
2011 2010
Segment Results — SOP
Beverage Concentrates $ 779 $ 745
Packaged Beverages 519 536
Latin America Beverages 43 40
Total SOP 1,341 1,321
Unallocated corporate costs 306 288
Other operating expense, net 11 8
Income from operations 1,024 1,025
Interest expense, net 111 125
Loss on early extinguishment of debt — 100
Other income, net (12)(21)
Income before provision for income taxes and equity in earnings of unconsolidated
subsidiaries $ 925 $ 821
BEVERAGE CONCENTRATES
The following table details our Beverage Concentrates segment's net sales and SOP for the year ended December 31, 2011
and 2010 (in millions):
For the Year Ended
December 31,
2011 2010 Change
Net sales $ 1,193 $ 1,156 $ 37
SOP 779 745 34
Net Sales. Net sales increased $37 million, or approximately 3%, for the year ended December 31, 2011, compared with the
year ended December 31, 2010. The increase was primarily due to higher net price realization, $27 million in revenue recognized
under the PepsiCo and Coca-Cola licensing arrangements and a slight increase in concentrate case sales, excluding the impact of
the repatriation of brands. The increase was partially offset by a 2% decline in concentrate case sales as a result of the repatriation
of brands to our Packaged Beverages segment.