Coca Cola 2011 Annual Report Download - page 69

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partially offset by an increase in cash receipts from customers, a decrease in tax payments, and the favorable impact of foreign
currency exchange rates on operations. Refer to the heading ‘‘Net Operating Revenues’’ above.
Cash flows from operating activities increased $1,346 million, or 16 percent, in 2010 compared to 2009. This increase was primarily
attributable to increased receipts from customers, the impact of our acquisition of CCE’s North American business, the favorable
impact of exchange rates on operations and a decrease in contributions to our pension plans. The impact of these items was
partially offset by higher tax payments in 2010. The increase in cash receipts from customers was primarily due to an increase in
net operating revenues. Refer to the heading ‘‘Net Operating Revenues’’ above. Also, in 2009, cash flows from operating activities
included the receipt of a $183 million special dividend from Coca-Cola Hellenic. The Company contributed approximately
$77 million to our pension plans during the year ended December 31, 2010, compared to $269 million during the year ended
December 31, 2009.
Cash Flows from Investing Activities
Our cash flows provided by (used in) investing activities are summarized as follows (in millions):
Year Ended December 31, 2011 2010 2009
Purchases of short-term investments $ (4,057) $ (4,579) $ (2,130)
Proceeds from disposals of short-term investments 5,647 4,032 —
Acquisitions and investments (977) (2,511) (300)
Purchases of other investments (787) (132) (22)
Proceeds from disposals of bottling companies and other investments 562 972 240
Purchases of property, plant and equipment (2,920) (2,215) (1,993)
Proceeds from disposals of property, plant and equipment 101 134 104
Other investing activities (93) (106) (48)
Net cash provided by (used in) investing activities $ (2,524) $ (4,405) $ (4,149)
Short-Term Investments
In 2011, purchases of short-term investments were $4,057 million, and proceeds from disposals of short-term investments were
$5,647 million. This activity resulted in a net cash inflow of $1,590 million during 2011. In 2010, purchases of short-term
investments were $4,579 million, and proceeds from disposals of short-term investments were $4,032 million. This activity resulted
in a net cash outflow of $547 million during 2010. In 2009, purchases of short-term investments were $2,130 million. These
short-term investments are time deposits that have maturities of greater than three months but less than one year, and are
classified in the line item short-term investments in our consolidated balance sheets. The Company began investing in longer-term
time deposits during the fourth quarter of 2009 to match the maturities of short-term debt issued as part of our commercial paper
program. Refer to the heading ‘‘Cash Flows from Financing Activities’’ below. These time deposits are classified in the line item
short-term investments in our consolidated balance sheets.
Acquisitions and Investments
In 2011, the Company’s acquisition and investment activities totaled $977 million. These activities were primarily related to the
acquisitions of Great Plains and Honest Tea, Inc. (‘‘Honest Tea’’), and an additional investment in Coca-Cola Central Japan
Company (‘‘Central Japan’’). In addition, the Company’s acquisition and investment activities during 2011 included immaterial
cash payments for the finalization of working capital adjustments related to our acquisition of CCE’s North American business.
Refer to our discussion of this transaction below. None of the Company’s other acquisitions or investments was individually
significant.
In 2010, the Company’s acquisition and investment activities totaled $2,511 million, which was primarily related to our acquisition
of CCE’s North American business; DPS license agreements; our acquisition of OAO Nidan Juices (‘‘Nidan’’), a Russian juice
company; and our additional investment in Fresh Trading Ltd. (‘‘innocent’’). The Company and the existing shareowners of
innocent have a series of outstanding put and call options for the Company to potentially acquire the remaining shares not
already owned by the Company. The put and call options are exercisable in stages between 2013 and 2014. Refer to the heading
‘‘Operations Review — Structural Changes, Acquired Brands and New License Agreements’’ above and Note 2 of Notes to
Consolidated Financial Statements for additional information related to our acquisitions during the year.
In 2009, our Company’s acquisition and investment activities totaled $300 million. None of the acquisitions or investments was
individually significant. Included in these investment activities was the acquisition of a minority interest in innocent. Refer to
Note 2 of Notes to Consolidated Financial Statements for additional information related to our acquisitions during the year.
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