Coca Cola 2006 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2006 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 144

  • 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
  • 141
  • 142
  • 143
  • 144

Share Repurchases
In October 1996, our Board of Directors authorized a plan (‘‘1996 Plan’’) to repurchase up to 206 million
shares of our Company’s common stock through 2006. On July 20, 2006, the Board of Directors of the Company
authorized a new share repurchase program of up to 300 million shares of the Company’s common stock. The
new program took effect upon the expiration of the 1996 Plan on October 31, 2006. The table below presents
annual shares repurchased and average price per share:
Year Ended December 31, 2006 2005 2004
Number of shares repurchased (in millions) 55 46 38
Average price per share $ 45.19 $ 43.26 $ 46.33
Since the inception of our initial share repurchase program in 1984 through our current program as of
December 31, 2006, we have purchased more than 1.2 billion shares of our Company’s common stock at an
average price per share of $17.53.
As strong cash flows are expected to continue in the future, the Company currently expects 2007 share
repurchases to be in the range of $2.5 billion to $3.0 billion.
Dividends
At its February 2007 meeting, our Board of Directors increased our quarterly dividend by 10 percent,
raising it to $0.34 per share, equivalent to a full-year dividend of $1.36 per share in 2007. This is our 45th
consecutive annual increase. Our annual common stock dividend was $1.24 per share, $1.12 per share and $1.00
per share in 2006, 2005 and 2004, respectively. The 2006 dividend represented a 10 percent increase from 2005,
and the 2005 dividend represented a 12 percent increase from 2004.
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.
As of December 31, 2006, our Company was contingently liable for guarantees of indebtedness owed by
third parties in the amount of approximately $270 million. Management concluded that the likelihood of any
material amounts being paid by our Company under these guarantees is not probable. As of December 31, 2006,
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 derivatives as either assets or liabilities at fair value in our consolidated
balance sheets. Refer to 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. This standby line of credit expired in December 2006.
60