it generally has a favorable impact on our gross profit margin and operating margin due to the correlated impact it has on our product mix. The product mix in the majority of our emerging and developing markets is more heavily skewed toward products in our sparkling beverage portfolio, which generally yield a higher gross profit margin compared to our still beverages and finished products. Consequently, the shift in our geographic mix is driving favorable product mix from a global perspective. 

In2012,ourconsolidatedoperatingincomeandoperatingmarginwerefavorablyimpactedbythereversalofpreviouslyrecognizedexpensesrelatedtotheCompany's long-term incentive compensation programs. As a result of the Company's revised outlook of the unfavorable impact foreign currency fluctuations are projected to have on certain performance periods, the Company lowered the estimated payouts associated with these periods. 

In2012,operatingincomeincreasedforEurasiaandAfricaduetovolumeandrevenuegrowthacrosstheoperating segment. 

In2012,operatingincomedeclinedforEuropeasaresultoflowersalesvolumeandshiftsinproduct,packageandchannelmixacrossmarkets,partiallyoffsetby efficient expense management. 

In2012,operatingincomeincreasedforLatinAmerica,reflectingsolidvolumegrowthandfavorablepricingacrossthegroup,partiallyoffsetbycontinuedinvestments in the business, including some initial investments related to the 2014 World Cup. 

In2012,operatingincomeincreasedforNorthAmerica,primarilyduetopositivevolumegrowthandfavorablepricing,partiallyoffsetbyhighercommoditycostsand ongoing investment in marketplace executional capabilities. 

In2012,operatingincomewasreducedby$21millionforNorthAmericaduetocostsassociatedwiththeCompanydetectingresiduesofcarbendazim,afungicidethat is not registered in the United States for use on citrus products, in orange juice imported from Brazil for distribution in the United States. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. 

In2012,operatingincomewasreducedby$20millionforNorthAmericaduetochangesintheCompany'sready-to-drinkteastrategyasaresultofourcurrentU.S. license agreement with Nestlé terminating at the end of 2012. 

In2012,operatingincomewasreducedby$1millionforEurope,$227millionforNorthAmerica,$3millionforPacific,$164millionforBottlingInvestmentsand$38 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. 

In2012,operatingincomewasincreasedby$4millionforEurope,$1millionforPacificand$5millionforCorporateduetotherefinementofpreviouslyestablished accruals related to the Company's 2008–2011 productivity initiatives. 

In2012,operatingincomewasincreasedby$6millionforNorthAmericaduetotherefinementofpreviouslyestablishedaccrualsrelatedtotheCompany'sintegration of CCE's former North America business. 

In2011,foreigncurrencyexchangeratesfavorablyimpactedconsolidatedoperatingincomeby4percent.Thefavorableimpactofchangesinforeigncurrencyexchange rates was primarily due to a weaker U.S. dollar compared to most foreign currencies, including the Japanese yen, Mexican peso,