Coca Cola 2013 Annual Report Download - page 67

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During 2013, the Company made payments of $38,714 million, which included $70 million of net payments of commercial paper
and short-term debt with maturities of 90 days or less, $35,199 million of payments of commercial paper and short-term debt with
maturities greater than 90 days and long-term debt payments of $3,445 million. The long-term debt payments included the
extinguishment of $2,154 million of long-term debt prior to maturity, which resulted in associated charges of $53 million, including
hedge accounting adjustments reclassified from accumulated other comprehensive income, in the line item interest expense in our
consolidated statement of income during the year ended December 31, 2013.
In 2012, the Company had issuances of debt of $42,791 million, which included $40,008 million of issuances of commercial paper
and short-term debt with maturities greater than 90 days. The Company’s total issuances of debt also included long-term debt
issuances of $2,783 million, net of related discounts and issuance costs.
During 2012, the Company made payments of debt of $38,573 million. Total payments of debt included $1,553 million of net
payments of commercial paper and short-term debt with maturities of 90 days or less, and $35,118 million of payments of
commercial paper and short-term debt with maturities greater than 90 days. The Company’s total payments of debt also included
long-term debt payments of $1,902 million.
In 2011, the Company had issuances of debt of $27,495 million, which included $25,219 million of issuances of commercial paper
and short-term debt with maturities greater than 90 days. The Company’s total issuances of debt also included long-term debt
issuances of $2,276 million, net of the debt issued to exchange a certain amount of our existing long-term debt. The Company
issued $2,979 million of long-term debt during 2011. We used $979 million of this newly issued 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 in the fourth quarter of 2010. 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.
During 2011, the Company made payments of debt of $22,530 million, including repurchased debt that was assumed in connection
with our acquisition of CCE’s former North America business. Total payments of debt included $91 million of net payments of
commercial paper and short-term debt with maturities of 90 days or less, and $20,334 million of payments of commercial paper
and short-term debt with maturities greater than 90 days. The Company’s total payments of debt also included long-term debt
payments of $2,105 million. During 2011, the Company recorded a net charge of $9 million in the line item interest expense in
our consolidated statement of income due to the exchange, repurchase and/or extinguishment of long-term debt described above.
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 amortization of these fair value
adjustments will be a reduction of interest expense in future periods, which will typically result in our interest expense being less
than the actual interest paid to service the debt. Total interest paid was $498 million, $574 million and $573 million in 2013, 2012
and 2011, respectively. Refer to Note 10 of Notes to Consolidated Financial Statements for additional information related to the
Company’s long-term debt balances.
Issuances of Stock
The issuances of stock in 2013, 2012 and 2011 were primarily related to the exercise of stock options by Company employees.
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