Coca Cola 2007 Annual Report Download - page 89

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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, 2007 2006
Other accrued expenses $ 2,379 $ 1,700
Accrued marketing 1,749 1,348
Trade accounts payable 1,380 929
Accrued compensation 696 550
Sales, payroll and other taxes 352 264
Container deposits 359 264
Accounts payable and accrued expenses $ 6,915 $ 5,055
NOTE 8: SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS
Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31,
2007 and 2006, we had approximately $5,420 million and $1,942 million, respectively, outstanding in commercial
paper borrowings. Our weighted-average interest rates for commercial paper outstanding were approximately
4.5 percent and 5.2 percent per year at December 31, 2007 and 2006, respectively. In addition, we had approximately
$4,963 million in lines of credit and other short-term credit facilities available as of December 31, 2007, of which
approximately $499 million was outstanding. The outstanding amount of approximately $499 million was primarily
related to our international operations. Included in the available credit facilities discussed above, the Company had
$3,750 million in lines of credit for general corporate purposes, including commercial paper backup. There were no
borrowings under these lines of credit during 2007.
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.
As of December 31, 2006, loans and notes payable included 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,
which was paid in January 2007. 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. The accretion was approximately $58 million and $60 million, respectively, for the years ended
December 31, 2006 and 2005.
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