Coca Cola 2013 Annual Report Download - page 64

Cash Flows from Investing Activities
Our cash flows provided by (used in) investing activities are summarized as follows (in millions):
Year Ended December 31, 2013 2012 2011
Purchases of investments $ (14,782) $ (14,824) $ (4,798)
Proceeds from disposals of investments 12,791 7,791 5,811
Acquisitions of businesses, equity method investments and nonmarketable securities (353) (1,486) (971)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities 872 20 398
Purchases of property, plant and equipment (2,550) (2,780) (2,920)
Proceeds from disposals of property, plant and equipment 111 143 101
Other investing activities (303) (268) (145)
Net cash provided by (used in) investing activities $ (4,214) $ (11,404) $ (2,524)
Net cash used in investing activities decreased $7,190 million in 2013 compared to 2012. This decrease was primarily related to a
change in the Company’s overall cash management program during 2012 which resulted in a greater use of cash in the first year
of implementation. The Company’s strategy around its cash management program has remained the same in 2013 but has
resulted, and will continue to result, in a lower use of cash when compared to the amount used during the first year of
implementation. Refer to the heading ‘‘Purchases of Investments and Proceeds from Disposals of Investments,’’ below for the
impact this change had on our consolidated statements of cash flows.
Purchases of Investments and Proceeds from Disposals of Investments
In 2013, purchases of investments were $14,782 million, and proceeds from disposals of investments were $12,791 million. This
activity resulted in a net cash outflow of $1,991 million during 2013. In 2012, purchases of investments were $14,824 million and
proceeds from disposals of investments were $7,791 million, resulting in a net cash outflow of $7,033 million. In 2011, purchases of
investments were $4,798 million and proceeds from disposals of investments were $5,811 million, resulting in a net cash inflow of
$1,013 million. These investments include time deposits that have maturities greater than three months but less than one year and
are classified in the line item short-term investments in our consolidated balance sheets. In addition, the Company made changes
to its overall cash management program in 2012. In an effort to manage counterparty risk and diversify our assets, the Company
shifted a large portion of its cash balances to investments in high-quality securities, primarily investments in debt securities, which
were classified in the line item marketable securities in our consolidated balance sheets. Refer to Note 2 and Note 3 of Notes to
Consolidated Financial Statements for additional information.
Acquisitions of Businesses, Equity Method Investments and Nonmarketable Securities
In 2013, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $353 million.
These activities primarily included our acquisition of the majority of the remaining outstanding shares of innocent and a majority
interest in bottling operations in Myanmar.
In 2012, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $1,486 million.
These activities were primarily related to the following: our investments in the existing beverage business of Aujan, one of the
largest independent beverage companies in the Middle East; our investment in Mikuni, a bottling partner located in Japan; our
acquisition of Sacramento Coca-Cola Bottling Co., Inc. (‘‘Sacramento bottler’’); and our acquisition of bottling operations in
Vietnam, Cambodia and Guatemala. None of the Company’s other acquisitions or investments was individually significant.
In 2011, our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $971 million.
These activities were primarily related to the acquisitions of Great Plains and Honest Tea, Inc. (‘‘Honest Tea’’), and an additional
investment in Coca-Cola Central Japan Company (‘‘Central Japan’’). In addition, these activities included immaterial cash
payments for the finalization of working capital adjustments related to our acquisition of CCE’s former North America business.
None of the Company’s other acquisitions or investments was individually significant.
Refer to the heading ‘‘Operations Review — Structural Changes, Acquired Brands and New License Agreements’’ and Note 2 of
Notes to Consolidated Financial Statements for additional information related to our acquisitions during the years ended
December 31, 2013, 2012 and 2011.
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