finances. In today’s world, earning trust requires more than just attention to sales reports and balance sheets. Conducting business responsibly is just as important as conducting it profitably. We are making sure this reality is ingrained in our Company’s culture and plans for future growth. 

In 2006, for the first time in our history, every function and every operating group implemented business plans with specific, quantifiable corporate responsibility objectives alongside unit case volume, profitability and other business goals. Our most prestigious and coveted divisional award—the Woodruff Cup—was won by our Iberian Division (Portugal and Spain) based on outstanding performance in 2006 across the five Ps of our Manifesto for Growth: people, portfolio, partners, planet and profit. 

In Closing 

I am proud of what we achieved in 2006. We are not satisfied, however. There will always be room to grow and improve. We have much work to do, but I believe our business is well positioned to grow sustainably and profitably. 

I am grateful to our shareowners who have shown faith in us as we have worked to turn our business around. I thank our Board of Directors for their continued wise counsel and guidance. Our local bottling and business partners have worked tirelessly to continue bringing the optimism and promise of Coca-Cola to all of the communities we are privileged to serve. Our associates everywhere continue to be dedicated stewards of the most valuable brand in the world. And our consumers? They inspire us every day. 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview 

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand The Coca- Cola Company, our operations and our present business environment. MD&A is provided as a supplement to—and should be read in conjunction with—our consolidated financial statements and the accompanying notes thereto contained in Item 8 of this report. This overview summarizes the MD&A, which includes the following sections: 

Our Business — a general description of our business and the nonalcoholic beverages segment of the commercial beverages industry; our objective; our areas of focus; and challenges and risks of our business. 

Critical Accounting Policies and Estimates — a discussion of accounting policies that require critical judgments and estimates. 

Operations Review — an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating segments are material to an understanding of our business as a whole, we present the discussion in the MD&A on a consolidated basis. 

Liquidity, Capital Resources and Financial Position — an analysis of cash flows; off-balance sheet arrangements and aggregate contractual obligations; the impact of foreign exchange; an overview of financial position; and the impact of inflation and changing prices. 

Our Business 

General 

We are the largest manufacturer, distributor and marketer of nonalcoholic beverage