Coca Cola 2013 Annual Report Download - page 68

Share Repurchases
On July 20, 2006, the Board of Directors of the Company authorized a share repurchase program of up to 600 million shares of
the Company’s common stock. The program took effect on October 31, 2006. Although there were approximately 43 million
shares that were yet to be purchased under this share repurchase program, the Board of Directors authorized a new share
repurchase program of up to 500 million shares of the Company’s common stock on October 18, 2012 (the ‘‘2012 Plan’’). The
2012 Plan allowed the Company to continue repurchasing shares following the completion of the prior program. The table below
presents annual shares repurchased and average price per share:
Year Ended December 31, 2013 2012 2011
Number of shares repurchased (in millions) 121 121 127
Average price per share $ 39.84 $ 37.11 $ 33.73
Since the inception of our initial share repurchase program in 1984 through our current program as of December 31, 2013, we
have purchased 3.1 billion shares of our Company’s common stock at an average price per share of $13.82. In addition to shares
repurchased under the stock repurchase plans authorized by our Board of Directors, the Company’s treasury stock activity also
includes shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding obligations in connection
with so-called stock swap exercises of employee stock options and/or the vesting of restricted stock issued to employees. In 2013,
we repurchased $4.8 billion of our stock. The net impact of the Company’s treasury stock issuance and purchase activities in 2013
resulted in a net cash outflow of $3.5 billion. We currently expect to repurchase $2.5 billion to $3.0 billion of our stock during
2014, net of proceeds from the issuance of stock due to the exercise of employee stock options.
Dividends
At its February 2014 meeting, our Board of Directors increased our quarterly dividend by 9 percent, raising it to $0.305 per share,
equivalent to a full year dividend of $1.22 per share in 2014. This is our 52nd consecutive annual increase. Our annual common
stock dividend was $1.12 per share, $1.02 per share and $0.94 per share in 2013, 2012 and 2011, respectively. The 2013 dividend
represented a 10 percent increase from 2012, and the 2012 dividend represented an 8.5 percent increase from 2011.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Off-Balance Sheet Arrangements
In accordance with the definition under SEC rules, the following qualify as off-balance sheet arrangements:
• any obligation under certain guarantee contracts;
• a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as
credit, liquidity or market risk support to that entity for such assets;
• any obligation under certain derivative instruments; and
• any obligation arising out of a material variable interest held by the registrant in an unconsolidated entity that provides
financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and
development services with the registrant.
As of December 31, 2013, we were contingently liable for guarantees of indebtedness owed by third parties of $662 million, of
which $288 million was related to VIEs. These guarantees are primarily related to third-party customers, bottlers, vendors and
container manufacturing operations and have arisen through the normal course of business. These guarantees have various terms,
and none of these guarantees was individually significant. The amount represents the maximum potential future payments that we
could be required to make under the guarantees; however, we do not consider it probable that we will be required to satisfy these
guarantees. Management concluded that the likelihood of any significant amounts being paid by our Company under these
guarantees is not probable. As of December 31, 2013, we were not directly liable for the debt of any unconsolidated entity, and
we did not have any retained or contingent interest in assets as defined above.
Our Company recognizes all derivatives as either assets or liabilities at fair value in our consolidated balance sheets. Refer to
Note 5 of Notes to Consolidated Financial Statements.
As of December 31, 2013, the Company had $6,410 million in lines of credit for general corporate purposes. These backup lines
of credit expire at various times from 2014 through 2018. There were no borrowings under these backup lines of credit during
2013. These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements require
compensating balances, none of which are presently significant to our Company.
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