Coca Cola 2011 Annual Report Download - page 72

The general terms of the notes issued during 2011 are as follows:
• $1,655 million total principal amount of notes due September 1, 2016, at a fixed interest rate of 1.8 percent; and
• $1,324 million total principal amount of notes due September 1, 2021, at a fixed interest rate of 3.3 percent.
During the fourth quarter of 2011, the Company extinguished long-term debt that had a carrying value of $20 million and was not
scheduled to mature until 2012. This debt was outstanding prior to the Company’s acquisition of CCE’s North American business.
In addition, the Company repurchased long-term debt during 2011 that was assumed in connection with our acquisition of CCE’s
North American business. The repurchased debt included $99 million in unamortized fair value adjustments recorded as part of
our purchase accounting for the CCE transaction and was settled throughout the year as follows:
• During the first quarter of 2011, the Company repurchased all of our outstanding U.K. pound sterling notes that had a
carrying value of $674 million;
• During the second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $42 million; and
• During the third quarter of 2011, the Company repurchased long-term debt that had a carrying value of $19 million.
In 2011, the Company had payments of debt of $22,530 million, including the repurchased debt discussed above. Total payments
of debt included $91 million of net payments of commercial paper and short-term debt with maturities of 90 days or less and
$20,334 million of payments of commercial paper and short-term debt with maturities greater than 90 days. The Company’s total
payments of debt also included long-term debt payments of $2,105 million. The Company recorded a net charge of $9 million in
the line item interest expense in our consolidated statement of income during the year ended December 31, 2011. This net charge
was due to the exchange, repurchase and/or extinguishment of long-term debt described above.
In 2010, the Company had issuances of debt of $15,251 million, which included $1,171 million of net issuances of commercial
paper and short-term debt with maturities of 90 days or less and $9,503 million of issuances of commercial paper and short-term
debt with maturities greater than 90 days. We also assumed $7.9 billion of debt as a result of our acquisition of CCE’s North
American business. In addition, on November 15, 2010, the Company issued $4,500 million of long-term notes. The proceeds from
the debt issuance were used to repurchase $2,910 million of long-term debt, and the remainder was used to reduce our
commercial paper balance. The long-term notes issued on November 15, 2010, had the following general terms:
• $1,250 million total principal notes due May 15, 2012, at a variable interest rate of 3 month LIBOR plus 0.05 percent;
• $1,250 million total principal notes due November 15, 2013, at a fixed interest rate of 0.75 percent;
• $1,000 million total principal notes due November 15, 2015, at a fixed interest rate of 1.5 percent; and
• $1,000 million total principal notes due November 15, 2020, at a fixed interest rate of 3.15 percent.
In 2010, the Company had payments of debt of $13,403 million, including the repurchased long-term debt discussed above. Total
payments of debt also included $9,667 million related to commercial paper and short-term debt with maturities greater than
90 days. The Company recorded a charge of $342 million 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. Refer to Note 10 of
Notes to Consolidated Financial Statements for additional information related to the Company’s long-term debt.
In 2009, the Company had issuances of debt of $14,689 million and payments of debt of $12,326 million. The issuances of debt
included $12,397 million of issuances of commercial paper and short-term debt with maturities greater than 90 days, as well as
$900 million and $1,350 million of long-term debt due March 15, 2014, and March 15, 2019, respectively. The payments of debt
included $1,861 million of net payments of commercial paper and short-term debt with maturities of 90 days or less;
$10,017 million related to commercial paper and short-term debt with maturities greater than 90 days; and $448 million related to
long-term debt. The increase in issuances and payments of commercial paper with maturities of greater than 90 days was primarily
due to a favorable interest rate environment on longer-term commercial paper. As a result, the Company also began investing in
longer-term time deposits that have maturities of greater than three months. Refer to the heading ‘‘Cash Flows from Investing
Activities’’ above.
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