Coca Cola 2013 Annual Report Download - page 103

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During 2012, the Company retired $1,250 million of long-term notes upon maturity and issued $2,750 million of long-term debt.
The general terms of the notes issued are as follows:
• $1,000 million total principal amount of notes due March 14, 2014, at a variable interest rate equal to the three-month
LIBOR minus 0.05 percent;
• $1,000 million total principal amount of notes due March 13, 2015, at a fixed interest rate of 0.75 percent; and
• $750 million total principal amount of notes due March 14, 2018, at a fixed interest rate of 1.65 percent.
During 2011, the Company issued $2,979 million of long-term debt. We used $979 million of this debt and paid a premium of
$208 million to exchange $1,022 million of existing long-term debt that was assumed in connection with our acquisition of CCE’s
former North America business. The remaining cash from the issuance was used to reduce the Company’s outstanding commercial
paper balance and exchange a certain amount of short-term debt.
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 2011, the Company extinguished $20 million of long-term debt prior to maturity. In addition, the Company repurchased
long-term debt during 2011, which included $99 million in unamortized fair value adjustments related to purchase accounting for a
prior year transaction and was settled throughout the year as follows:
• $674 million, which represented the carrying value of all of our outstanding British pound sterling notes, was repurchased;
and
• $61 million in carrying value of long-term debt was repurchased.
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.
The Company’s long-term debt consisted of the following (in millions, except average rate data):
December 31, 2013 December 31, 2012
Average Average
Amount Rate1Amount Rate1
U.S. dollar notes due 2014–2093 $ 17,427 1.8% $ 13,407 1.7%
U.S. dollar debentures due 2017–2098 2,191 3.9 2,207 3.7
U.S. dollar zero coupon notes due 20202138 8.4 135 8.4
Other, due through 20983370 4.0 291 4.4
Fair value adjustment452 N/A 273 N/A
Total5,6 $ 20,178 2.2% $ 16,313 2.1%
Less current portion 1,024 1,577
Long-term debt $ 19,154 $ 14,736
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 $33 million and $36 million as of December 31, 2013 and 2012, respectively.
3As of December 31, 2013, the amount shown includes $167 million of debt instruments that are due through 2022.
4Refer to Note 5 for additional information about our fair value hedging strategy.
5As of December 31, 2013 and 2012, the fair value of our long-term debt, including the current portion, was $20,352 million and $17,157 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.
The carrying value of the Company’s long-term debt included fair value adjustments related to the debt assumed from CCE of
$514 million and $617 million as of December 31, 2013 and 2012, respectively. These fair value adjustments are being
amortized over the number of years remaining until the underlying debt matures. As of December 31, 2013, the weighted-
average maturity of the assumed debt to which these fair value adjustments relate was approximately 19 years. The
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