Coca Cola 2013 Annual Report Download - page 128

Other Postretirement Benefit Plan Assets
The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets as of
December 31, 2013 and 2012 (in millions):
December 31, 2013 December 31, 2012
Level 1 Level 2 Level 31Total Level 1 Level 2 Level 31Total
Cash and cash equivalents $— $10 $—$10 $ 1 $12 $—$13
Equity securities:
U.S.-based companies 112 — — 112 81——81
International-based companies 8—— 8 4—— 4
Fixed-income securities:
Government bonds 76 3 — 79 75 3 — 78
Corporate bonds and debt securities —9—9 —5—5
Mutual, pooled and commingled funds 11 7 — 18 11 5 — 16
Hedge funds/limited partnerships —123 —123
Real estate —— 2 2 —— 2 2
Other —— 2 2 ————
Total $ 207 $ 30 $ 6 $ 243 $ 172 $ 26 $ 4 $ 202
1Level 3 assets are not a significant portion of other postretirement benefit plan assets.
Other Fair Value Disclosures
The carrying amounts of cash and cash equivalents; short-term investments; receivables; accounts payable and accrued expenses;
and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial
instruments.
The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments. Where
quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest
rates, credit risk and the contractual terms of the debt instruments. As of December 31, 2013, the carrying amount and fair value
of our long-term debt, including the current portion, were $20,178 million and $20,352 million, respectively. As of December 31,
2012, the carrying amount and fair value of our long-term debt, including the current portion, were $16,313 million and
$17,157 million, respectively.
NOTE 17: SIGNIFICANT OPERATING AND NONOPERATING ITEMS
Other Operating Items
In December 2011, the Company detected that orange juice being imported from Brazil contained residues of carbendazim, a
fungicide that is not registered in the United States for use on citrus products. As a result, we began purchasing additional
supplies of Florida orange juice at a higher cost than Brazilian orange juice and incurred charges of $13 million during the year
ended December 31, 2012. These charges were recorded in the line item cost of goods sold in our consolidated statement of
income.
On March 11, 2011, a major earthquake struck off the coast of Japan, resulting in a tsunami that devastated the northern and
eastern regions of the country. As a result of these events, the Company made a donation to a charitable organization to
establish the Coca-Cola Japan Reconstruction Fund, which has helped rebuild schools and community facilities across the
impacted areas of the country. The Company recorded total charges of $84 million related to these events during the year ended
December 31, 2011, including $23 million in deductions from revenue, $11 million in cost of goods sold and $50 million in other
operating charges. The charges of $23 million recorded in deductions from revenue were primarily related to funds we provided
our local bottling partners to enable them to continue producing and distributing our beverage products in the affected regions.
This support not only helped restore our business operations in the impacted areas, but it also assisted our bottling partners in
meeting the evolving customer and consumer needs as the recovery and rebuilding efforts advanced. The charges of $11 million
recorded in cost of goods sold were primarily related to Company-owned inventory that was destroyed or lost. The charges of
$50 million recorded in other operating charges were primarily related to the donation discussed above and included an
impairment charge of $1 million related to certain Company-owned fixed assets. These fixed assets primarily consisted of
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