Coca Cola 2011 Annual Report Download - page 73

Issuances of Stock
The issuances of stock in 2011, 2010 and 2009 were primarily related to the exercise of stock options by Company employees.
Share Repurchases
On July 20, 2006, the Board of Directors of the Company authorized a share repurchase program of up to 300 million shares of
the Company’s common stock. The program took effect on October 31, 2006. The table below presents annual shares repurchased
and average price per share:
Year Ended December 31, 2011 2010 2009
Number of shares repurchased (in millions) 63 49 26
Average price per share $ 67.46 $ 63.85 $ 57.09
Since the inception of our initial share repurchase program in 1984 through our current program as of December 31, 2011, we
have purchased approximately 1.4 billion shares of our Company’s common stock at an average price per share of $23.43. In
addition to shares repurchased under the stock repurchase plans authorized by our Board of Directors, the Company’s treasury
stock activity also includes shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding
obligations in connection with so-called stock swap exercises of employee stock options and/or the vesting of restricted stock
issued to employees. In 2011, we repurchased $4.3 billion of our stock. However, due to the timing of settlements, the total
amount of treasury stock purchases that settled during 2011 was $4.5 billion, which includes treasury stock that was purchased and
settled during 2011 as well as treasury stock purchased in December 2010 that settled in early 2011. The net impact of the
Company’s treasury stock issuance and purchase activities in 2011 resulted in a net cash outflow of $2.9 billion. We currently
expect to repurchase an additional $2.5 billion to $3.0 billion of our stock during 2012, net of proceeds from the issuance of stock
due to the exercise of employee stock options.
Dividends
At its February 2012 meeting, our Board of Directors increased our quarterly dividend by 8.5 percent, raising it to $0.51 per share,
equivalent to a full year dividend of $2.04 per share in 2012. This is our 50th consecutive annual increase. Our annual common
stock dividend was $1.88 per share, $1.76 per share and $1.64 per share in 2010, 2009 and 2008, respectively. The 2011 dividend
represented a 7 percent increase from 2010, and the 2010 dividend represented a 7 percent increase from 2009.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Off-Balance Sheet Arrangements
In accordance with the definition under SEC rules, the following qualify as off-balance sheet arrangements:
• any obligation under certain guarantee contracts;
• a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as
credit, liquidity or market risk support to that entity for such assets;
• any obligation under certain derivative instruments; and
• any obligation arising out of a material variable interest held by the registrant in an unconsolidated entity that provides
financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and
development services with the registrant.
As of December 31, 2011, we were contingently liable for guarantees of indebtedness owed by third parties of $654 million, of
which $321 million was related to VIEs. These guarantees are primarily related to third-party customers, bottlers, vendors and
container manufacturing operations and have arisen through the normal course of business. These guarantees have various terms,
and none of these guarantees was individually significant. The amount represents the maximum potential future payments that we
could be required to make under the guarantees; however, we do not consider it probable that we will be required to satisfy these
guarantees. Management concluded that the likelihood of any significant amounts being paid by our Company under these
guarantees is not probable. As of December 31, 2011, we were not directly liable for the debt of any unconsolidated entity, and
we did not have any retained or contingent interest in assets as defined above.
Our Company recognizes all derivatives as either assets or liabilities at fair value in our consolidated balance sheets. Refer to
Note 5 of Notes to Consolidated Financial Statements.
As of December 31, 2011, the Company had $4,625 million in lines of credit for general corporate purposes, including
commercial paper backup. These backup lines of credit expire at various times from 2012 through 2016. There were no
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