Coca Cola 2013 Annual Report Download - page 102

NOTE 9: ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the following (in millions):
December 31, 2013 2012
Accrued marketing $ 2,407 $ 2,231
Other accrued expenses 3,515 2,711
Trade accounts payable 1,933 1,969
Accrued compensation 933 1,045
Sales, payroll and other taxes 450 389
Container deposits 339 335
Accounts payable and accrued expenses $ 9,577 $ 8,680
NOTE 10: DEBT AND BORROWING ARRANGEMENTS
Short-Term Borrowings
Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2013 and 2012,
we had $16,853 million and $16,204 million, respectively, in outstanding commercial paper borrowings. Our weighted-average
interest rates for commercial paper outstanding were approximately 0.2 percent and 0.3 percent per year as of December 31, 2013
and 2012, respectively.
In addition, we had $7,413 million in lines of credit and other short-term credit facilities as of December 31, 2013. The Company’s
total lines of credit included $48 million that was outstanding and primarily related to our international operations.
Included in the credit facilities discussed above, the Company had $6,410 million in lines of credit for general corporate purposes.
These backup lines of credit expire at various times from 2014 through 2018. There were no borrowings under these backup lines
of credit during 2013. 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.
Long-Term Debt
During 2013, the Company issued $7,500 million of long-term debt. The general terms of the notes issued are as follows:
• $500 million total principal amount of notes due March 5, 2015, at a variable interest rate equal to the three-month
London Interbank Offered Rate (‘‘LIBOR’’) minus 0.02 percent;
• $500 million total principal amount of notes due November 1, 2016, at a variable interest rate equal to the three-month
LIBOR plus 0.10 percent;
• $500 million total principal amount of notes due November 1, 2016, at a fixed interest rate of 0.75 percent;
• $1,250 million total principal amount of notes due April 1, 2018, at a fixed interest rate of 1.15 percent;
• $1,250 million total principal amount of notes due November 1, 2018, at a fixed interest rate of 1.65 percent;
• $1,250 million total principal amount of notes due November 1, 2020, at a fixed interest rate of 2.45 percent;
• $750 million total principal amount of notes due April 1, 2023, at a fixed interest rate of 2.50 percent; and
• $1,500 million total principal amount of notes due November 1, 2023, at a fixed interest rate of 3.20 percent.
During 2013, the Company retired $1,250 million of debt upon maturity. The Company also extinguished $2,154 million of
long-term debt prior to maturity, incurring associated extinguishment charges of $50 million. The general terms of the notes that
were extinguished were:
• $225 million total principal amount of notes due August 15, 2013, at a fixed interest rate of 5.0 percent;
• $675 million total principal amount of notes due March 3, 2014, at a fixed interest rate of 7.375 percent;
• $900 million total principal amount of notes due March 15, 2014, at a fixed interest rate of 3.625 percent; and
• $354 million total principal amount of notes due March 1, 2015, at a fixed interest rate of 4.25 percent.
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