Coca Cola 2006 Annual Report Download - page 91

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7: ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the following (in millions):
December 31, 2006 2005
Other accrued expenses $ 1,653 $ 1,413
Accrued marketing 1,348 1,268
Trade accounts payable 929 902
Accrued compensation 550 468
Sales, payroll and other taxes 264 215
Container deposits 264 209
Accrued streamlining costs 47 18
Accounts payable and accrued expenses $ 5,055 $ 4,493
NOTE 8: SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS
Loans and notes payable consist primarily of commercial paper issued in the United States and a liability to
acquire the remaining approximate 59 percent of the outstanding stock of Coca-Cola Erfrischungsgetraenke AG
(‘‘CCEAG’’). As of December 31, 2006, the Company owned approximately 41 percent of CCEAG’s outstanding
stock. In February 2002, the Company acquired control of CCEAG and agreed to put/call agreements with the
other shareowners of CCEAG, which resulted in the recording of a liability to acquire the remaining shares in
CCEAG. The present value of the total amount to be paid by our Company to all other CCEAG shareowners
was approximately $1,068 million at December 31, 2006, and approximately $941 million at December 31, 2005.
This amount increased from the initial liability of approximately $600 million due to the accretion of the
discounted value to the ultimate maturity of the liability and the translation adjustment related to this liability,
partially offset by payments made to the other CCEAG shareowners during the term of the agreements. The
accretion of the discounted value to its ultimate maturity value is recorded in the line item other income (loss)—
net, and this amount was approximately $58 million, $60 million and $58 million, respectively, for the years
ended December 31, 2006, 2005 and 2004.
As of December 31, 2006 and 2005, we had approximately $1,942 million and $3,311 million, respectively,
outstanding in commercial paper borrowings. Our weighted-average interest rates for commercial paper
outstanding were approximately 5.2 percent and 4.2 percent per year at December 31, 2006 and 2005,
respectively. In addition, we had $1,952 million in lines of credit and other short-term credit facilities available as
of December 31, 2006, of which approximately $225 million was outstanding. The outstanding amount of
approximately $225 million was primarily related to our international operations. Included in the available credit
facilities discussed above, the Company had $1,150 million in lines of credit for general corporate purposes,
including commercial paper backup. There were no borrowings under these lines of credit during 2006.
These credit facilities are subject to normal banking terms and conditions. Some of the financial
arrangements require compensating balances, none of which is presently significant to our Company.
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