Coca Cola 2003 Annual Report Download - page 47

of which approximately $246 million was outstanding. This entire $246 million related to our
international operations.
The issuances of debt in 2003 primarily included approximately $304 million of issuances of commercial
paper with maturities 90 days or less and approximately $715 million of issuances of commercial paper with
maturities more than 90 days. The payments of debt in 2003 primarily included approximately $907 million
related to commercial paper with maturities more than 90 days and $150 million of long-term debt.
The issuances of debt in 2002 primarily included approximately $832 million of issuances of commercial
paper with maturities of more than 90 days and $750 million in issuances of long-term notes due June 1, 2005.
The payments of debt in 2002 primarily included approximately $816 million related to commercial paper with
maturities of more than 90 days, net payments of $1,280 million related to commercial paper with maturities of
90 days or less and the $150 million redemption of 65⁄8 percent U.S. dollar notes.
The issuances of debt in 2001 primarily included approximately $2,383 million of issuances of commercial
paper with maturities of more than 90 days. In 2001, we also had a $500 million issuance of long-term debt. The
payments of debt in 2001 primarily included approximately $3,864 million related to commercial paper with
maturities of more than 90 days. Net issuances related to commercial paper with maturities of 90 days or less
were $40 million in 2001.
During 2003, 2002 and 2001, the Company repurchased common stock under the share repurchase plan
authorized by our Board of Directors in October 1996. As strong cash flows are expected to continue in the
future, the Company currently expects to increase its 2004 share repurchase levels to at least $2 billion. Refer to
MD&A heading ‘‘Financial Strategies and Risk Management.’’
Dividends have increased every year for each of the last 42 years, and we believe that for the foreseeable
future, our Board of Directors intends to increase our dividends.
Off–Balance Sheet Arrangements and Aggregate Contractual Obligations
Off–Balance Sheet Arrangements. In accordance with the definition under Securities and Exchange
Commission rules, the following qualify as off–balance sheet arrangements:
• any obligation under certain guarantees or contracts;
• a retained or contingent interest in assets transferred to an unconsolidated entity or similar entity or
similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets;
• any obligation under certain derivative instruments;
• any obligation under a material variable interest held by the registrant in an unconsolidated entity that
provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing,
hedging or research and development services with the registrant.
The following discussion addresses each of the above items for our Company. On December 31, 2003, our
Company was contingently liable for guarantees of indebtedness owed by third parties in the amount of
$280 million. Management concluded that the likelihood of any material amounts being paid by our Company is
not probable. In December 2003, we granted a $250 million stand-by line of credit to Coca-Cola FEMSA with
normal market terms. We do not provide any other guarantees. As of December 31, 2003, we were not directly
liable for the debt of any unconsolidated entity, and we do not have any retained or contingent interest in assets
as defined above. Additionally, our Company recognizes all derivative instruments as either assets or liabilities at
fair value in our balance sheets. Refer to Notes 10 and 11.
Our Company has equity ownership interests in bottlers that we currently account for under the equity
method of accounting. For certain entities, primarily bottlers, our Company holds variable interests such as
providing financing and guarantees, in addition to our equity investments. As a result, these entities are
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