Coca Cola 2011 Annual Report Download - page 111

assumed debt at its fair value as of the acquisition date. Refer to Note 2.
On November 15, 2010, the Company issued $4,500 million of long-term notes and used some of the proceeds to repurchase
$2,910 million of long-term debt. The remaining cash from the issuance was used to reduce our outstanding commercial paper
balance. The repurchased debt consisted of $1,827 million of debt assumed in our acquisition of CCE’s North American business
and $1,083 million of the Company’s debt that was outstanding prior to the acquisition. The Company recorded a charge of
$342 million in interest expense related to the premiums paid to repurchase the long-term debt and the costs associated with the
settlement of treasury rate locks issued in connection with the debt tender offer. The general terms of the notes issued on
November 15, 2010, were as follows:
• $1,250 million total principal amount of notes due May 15, 2012, at a variable interest rate of 3 month LIBOR plus
0.05 percent;
• $1,250 million total principal amount of notes due November 15, 2013, at a fixed interest rate of 0.75 percent;
• $1,000 million total principal amount of notes due November 15, 2015, at a fixed interest rate of 1.5 percent; and
• $1,000 million total principal amount of notes due November 15, 2020, at a fixed interest rate of 3.15 percent.
Subsequent to the repurchase of a portion of the long-term debt assumed from CCE, the general terms of the debt assumed and
remaining outstanding as of December 31, 2010, were as follows:
• $2,594 million total principal amount of U.S. dollar notes due 2011 to 2037 at an average interest rate of 5.7 percent;
• $2,288 million total principal amount of U.S. dollar debentures due 2012 to 2098 at an average interest rate of 7.4 percent;
• $275 million total principal amount of U.S. dollar notes due 2011 at a variable interest rate of 1.0 percent;
• $544 million total principal amount of U.K. pound sterling notes due 2016 and 2021 at an average interest rate of
6.5 percent;
• $303 million principal amount of U.S. dollar zero coupon notes due 2020; and
• $26 million of other long-term debt.
On March 6, 2009, the Company issued $2,250 million of long-term notes and used the proceeds to replace a certain amount of
commercial paper and short-term debt with long-term debt. The general terms of these notes were as follows:
• $900 million total principal amount of notes due March 15, 2014, at a fixed interest rate of 3.625 percent; and
• $1,350 million total principal amount of notes due March 15, 2019, at a fixed interest rate of 4.875 percent.
The Company’s long-term debt consisted of the following (in millions, except average rate data):
December 31, 2011 December 31, 2010
Average Average
Amount Rate1Amount Rate1
U.S. dollar notes due 2012–2093 $ 12,270 1.9% $ 11,195 1.8%
U.S. dollar debentures due 2012–2098 2,482 4.0 2,946 3.9
U.S. dollar zero coupon notes due 20202130 8.4 222 8.4
U.K. pound sterling notes due 2016 and 2021 —— 652 6.5
Other, due through 20983584 4.8 404 5.0
Fair value adjustment4231 N/A (102) N/A
Total5,6 $ 15,697 2.3% $ 15,317 2.6%
Less current portion 2,041 1,276
Long-term debt $ 13,656 $ 14,041
1These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest
rate swap agreements as well as fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management.
2This amount is shown net of unamortized discounts of $41 million and $81 million as of December 31, 2011 and 2010, respectively.
3As of December 31, 2011, the amount shown includes $372 million of debt instruments that are due through 2020.
4Refer to Note 5 for additional information about our fair value hedging strategy.
5As of December 31, 2011 and 2010, the fair value of our long-term debt, including the current portion, was $16,360 million and $16,218 million,
respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments.
6The above notes and debentures include various restrictions, none of which is presently significant to our Company.
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