Coca Cola 2013 Annual Report Download - page 65

On February 5, 2014, the Company entered into agreements with Green Mountain Coffee Roasters, Inc. (‘‘GMCR’’), providing for
the development and introduction of the Company’s global brand portfolio for use in GMCR’s forthcoming Keurig ColdTM at-home
beverage system and the acquisition by the Company of an approximate 10 percent equity position in GMCR. Under the terms of
the equity agreement, a wholly-owned subsidiary of the Company agreed to purchase 16,684,139 newly issued shares in GMCR for
approximately $1.25 billion. The newly issued shares have been priced at $74.98, which represents the trailing 50-trading-day
volume weighted-average price as of the agreement date. The transaction closed on February 27, 2014.
Proceeds from Disposals of Businesses, Equity Method Investments and Nonmarketable Securities
In 2013, proceeds from disposals of businesses, equity method investments and nonmarketable securities were $872 million. These
proceeds primarily included the sale of a majority ownership interest in our previously consolidated Philippine bottling operations,
and separately, the deconsolidation of our Brazilian bottling operations. Refer to Note 2 of Notes to Consolidated Financial
Statements for additional information.
In 2011, proceeds from disposals of businesses, equity method investments and nonmarketable securities were $398 million. These
proceeds were primarily related to the sale of our investment in Embonor for $394 million. Refer to Note 2 of Notes to
Consolidated Financial Statements for additional information.
Property, Plant and Equipment
Purchases of property, plant and equipment net of disposals for the years ended December 31, 2013, 2012 and 2011 were
$2,439 million, $2,637 million and $2,819 million, respectively. Total capital expenditures for property, plant and equipment and
the percentage of such totals by operating segment were as follows (in millions):
Year Ended December 31, 2013 2012 2011
Capital expenditures $ 2,550 $ 2,780 $ 2,920
Eurasia & Africa 1.6% 1.8% 1.7%
Europe 1.3 1.1 1.3
Latin America 2.5 3.2 3.6
North America 53.9 52.0 46.7
Pacific 4.6 3.9 4.4
Bottling Investments 25.2 31.2 35.6
Corporate 10.9 6.8 6.7
We expect our annual 2014 capital expenditures to be $2.5 billion to $3.0 billion as we continue to make investments to enable
growth in our business and further enhance our operational effectiveness.
Other Investing Activities
In 2013, other investing activities were primarily related to the acquisition of trademarks and certain other intangible assets. None
of these investments was individually significant.
In 2012, other investing activities were primarily related to the Company’s consolidated Philippine and Brazilian bottling
operations being classified as held for sale as of December 31, 2012. Refer to Note 2 of Notes to Consolidated Financial
Statements for additional information on these transactions. The cash flow impact of these transactions in other investing activities
represents the balance of cash and cash equivalents held by these entities being transferred to assets held for sale.
In 2011, other investing activities were primarily related to the Company’s investments in joint ventures. None of these
investments was individually significant.
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