Coca Cola 2005 Annual Report Download - page 59

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Share Repurchases
In October 1996, our Board of Directors authorized the 1996 Plan to repurchase up to 206 million shares of
our Company’s common stock through 2006. The table below presents shares repurchased and average price per
share under the 1996 Plan:
Year Ended December 31, 2005 2004 2003
Number of shares repurchased (in millions) 46 38 33
Average price per share $ 43.26 $ 46.33 $ 44.33
Since the inception of our initial share repurchase program in 1984 through our current program as of
December 31, 2005, we have purchased more than 1.1 billion shares of our Company’s common stock at an
average price per share of $16.24. This represents approximately 36 percent of the shares outstanding as of
January 1, 1984.
During 2005, 2004 and 2003, the Company repurchased common stock under the 1996 Plan. As strong cash
flows are expected to continue in the future, the Company currently expects 2006 share repurchases to be in the
range of $2.0 billion to $2.5 billion.
Dividends
At its February 2006 meeting, our Board of Directors increased our quarterly dividend by 11 percent,
raising it to $0.31 per share, equivalent to a full-year dividend of $1.24 per share in 2006. This is our 44th
consecutive annual increase. Our annual common stock dividend was $1.12 per share, $1.00 per share and $0.88
per share in 2005, 2004 and 2003, respectively. The 2005 dividend represented a 12 percent increase from 2004,
and the 2004 dividend represented a 14 percent increase from 2003.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Off-Balance Sheet Arrangements
In accordance with the definition under SEC rules, the following qualify as off-balance sheet arrangements:
• any obligation under certain guarantee contracts;
• a retained or contingent interest in assets transferred to an unconsolidated 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; and
• any obligation arising out of 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 discusses certain obligations and arrangements involving our Company.
On December 31, 2005, our Company was contingently liable for guarantees of indebtedness owed by third
parties in the amount of approximately $248 million. Management concluded that the likelihood of any material
amounts being paid by our Company is not probable. As of December 31, 2005, we were not directly liable for
the debt of any unconsolidated entity, and we did not have any retained or contingent interest in assets as
defined above.
Our Company recognizes all derivative instruments as either assets or liabilities at fair value in our
consolidated balance sheets. Refer to Note 11 and Note 12 of Notes to Consolidated Financial Statements.
In December 2003, we granted a $250 million standby line of credit to Coca-Cola FEMSA with normal
market terms. As of December 31, 2005, no amounts have been drawn against this line of credit. This standby
line of credit expires in December 2006.
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