Coca Cola 2005 Annual Report Download - page 57

Acquisitions and investments represented the next most significant investing activity, accounting for
$637 million in 2005, $267 million in 2004 and $359 million in 2003.
On April 20, 2005, our Company and Coca-Cola HBC jointly acquired Multon for a total purchase price of
approximately $501 million, split equally between the Company and Coca-Cola HBC. During the third quarter
of 2005, our Company acquired the German soft drink bottling company Bremer for approximately $160 million
from InBev SA. Also in 2005, the Company acquired Sucos Mais, a Brazilian juice company, and completed the
acquisition of the remaining 49 percent interest in the business of CCDA Waters L.L.C. (‘‘CCDA’’) not
previously owned by our Company. Refer to Note 19 of Notes to Consolidated Financial Statements.
In 2004, proceeds from disposals of property, plant and equipment of approximately $341 million related
primarily to the sale of production assets in Japan. Refer to Note 2 of Notes to Consolidated Financial
Statements. In 2004, cash payments for acquisitions and investments were primarily related to the purchase of
trademarks in Latin America.
In 2003, our single largest acquisition requiring the use of cash was the purchase of a 100 percent ownership
interest in Truesdale Packaging Company LLC (‘‘Truesdale’’) from our equity method investee CCE for
approximately $58 million. Truesdale owns a noncarbonated beverage production facility. In 2003, acquisitions
of intangible assets totaled approximately $142 million. Of this amount, approximately $88 million was related to
the Company’s acquisition of certain intangible assets with indefinite lives, primarily trademarks and brands in
various parts of the world. None of these trademarks and brands were considered individually significant.
Additionally, the Company acquired certain indefinite-lived brands and related definite-lived contractual rights,
with an estimated useful life of 10 years, from Panamco valued at $54 million in the Latin America operating
segment.
In July 2003, we made a convertible loan of approximately $133 million to The Coca-Cola Bottling
Company of Egypt (‘‘TCCBCE’’) which is included in the line item purchases of investments and other assets in
our consolidated statement of cash flows. 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(R) effective April 2, 2004. Refer to Note 1 and Note 2
of Notes to Consolidated Financial Statements.
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 which is included in the line item
other investing activities in our consolidated statement of cash flows. Refer to Note 2 of Notes to Consolidated
Financial Statements.
Cash Flows from Financing Activities
Our cash flows used in financing activities were as follows (in millions):
Year Ended December 31, 2005 2004 2003
Cash flows provided by (used in) financing activities:
Issuances of debt $ 178 $ 3,030 $ 1,026
Payments of debt (2,460) (1,316) (1,119)
Issuances of stock 230 193 98
Purchases of stock for treasury (2,055) (1,739) (1,440)
Dividends (2,678) (2,429) (2,166)
Net cash used in financing activities $ (6,785) $ (2,261) $ (3,601)
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