Coca Cola 2004 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2004 Coca Cola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 9: FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments
The carrying amounts reflected in our consolidated balance sheets for cash and cash equivalents,
non-marketable cost method investments, trade accounts receivable and loans and notes payable approximate
their respective fair values. The carrying amount and the fair value of our long-term debt, including the current
portion, as of December 31, 2004 was approximately $2,647 million and $2,736 million, respectively. As of
December 31, 2003, the carrying amount and the fair value of our long-term debt, including the current portion,
was approximately $2,840 million and $2,942 million, respectively. For additional details about our long-term
debt, refer to Note 7.
Fair values are based primarily on quoted prices for those or similar instruments. Fair values for our
derivative financial instruments are included in Note 10.
Credit Risk
With respect to our cash and cash equivalents balances, we manage our exposure to counterparty credit risk
through specific minimum credit standards, diversification of counterparties and procedures to monitor
concentration of credit risk. Based on these factors, we consider the risk of counterparty default to be minimal.
Certain Debt and Marketable Equity Securities
Investments in debt and marketable equity securities, other than investments accounted for by the equity
method, are required to be categorized as either trading, available-for-sale or held-to-maturity. On
December 31, 2004 and 2003, we had no trading securities. Securities categorized as available-for-sale are stated
at fair value, with unrealized gains and losses, net of deferred income taxes, reported as a component of
Accumulated Other Comprehensive Income (Loss) (‘‘AOCI’’). Debt securities, primarily time deposits,
categorized as held-to-maturity are stated at amortized cost.
85