Coca Cola 2004 Annual Report Download - page 52

the world. None of these trademarks and brands was considered individually significant. Additionally, the
Company acquired certain brands and related contractual rights from Panamco valued at $54 million in the
Latin America operating segment with an estimated useful life of 10 years.
In 2002, our Company expended cash of approximately $328 million for acquisitions of our interests in
CBC, a publicly traded Philippine beverage company, and CCDA. Refer to Note 18.
In July 2003, we made a convertible loan of approximately $133 million to The Coca-Cola Bottling
Company of Egypt (‘‘TCCBCE’’). The loan is convertible into preferred shares of TCCBCE upon receipt of
governmental approvals. Additionally, upon certain defaults under either the loan agreement or the terms of the
preferred shares, we have the ability to convert the loan or the preferred shares into common shares. At
December 31, 2003, our Company owned approximately 42 percent of the common shares of TCCBCE. The
Company consolidated TCCBCE under Interpretation 46 effective March 31, 2004. Refer to Note 1.
In November 2003, Coca-Cola HBC approved a share capital reduction totaling approximately 473 million
euros and the return of 2 euros per share to all shareowners. In December 2003, our Company received our
share capital return payment from Coca-Cola HBC equivalent to $136 million. Refer to Note 2.
Cash Flows from Financing Activities
Our cash flows used in financing activities are as follows (in millions):
Year Ended December 31, 2004 2003 2002
Cash flows provided by (used in) financing activities:
Issuances of debt $ 3,030 $ 1,026 $ 1,622
Payments of debt (1,316) (1,119) (2,378)
Issuances of stock 193 98 107
Purchases of stock for treasury (1,739) (1,440) (691)
Dividends (2,429) (2,166) (1,987)
Net cash used in financing activities $ (2,261) $ (3,601) $ (3,327)
Issuances and payments of debt included both short-term and long-term financing activities. On December 31,
2004, we had $1,614 million in lines of credit and other short-term credit facilities available, of which approximately
$296 million was outstanding. This entire $296 million related to our international operations.
The issuances of debt in 2004 primarily included approximately $2,109 million of net issuances of
commercial paper with maturities of 90 days or less and approximately $818 million of issuances of commercial
paper with maturities of more than 90 days. The payments of debt in 2004 primarily included approximately
$927 million related to commercial paper with maturities of more than 90 days and $367 million of long-term
debt. Our Company’s total net increase in debt was primarily due to meeting our short-term cash needs in the
United States, as a majority of our cash is currently being held in locations outside of the United States. Refer to
the heading ‘‘Operations Review—Interest Income and Interest Expense.’’
The issuances of debt in 2003 primarily included approximately $304 million of net issuances of commercial
paper with maturities of 90 days or less and approximately $715 million of issuances of commercial paper with
maturities of more than 90 days. The payments of debt in 2003 primarily included approximately $907 million
related to commercial paper with maturities of 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.
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