Coca Cola 2013 Annual Report Download - page 91

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NOTE 3: INVESTMENTS
Investments in debt and marketable securities, other than investments accounted for under the equity method, are classified as
trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as either trading or
available-for-sale with their cost basis determined by the specific identification method. Our investments in debt securities are
carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to
hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not
classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized
gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in net income.
Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets
as a component of AOCI, except for the change in fair value attributable to the currency risk being hedged. Refer to Note 5 for
additional information related to the Company’s fair value hedges of available-for-sale securities.
Trading Securities
As of December 31, 2013 and 2012, our trading securities had a fair value of $372 million and $266 million, respectively, and
consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $12 million and $19 million
as of December 31, 2013 and 2012, respectively, and net unrealized losses of $5 million as of December 31, 2011. The Company’s
trading securities were included in the following captions in our consolidated balance sheets (in millions):
December 31, 2013 2012
Marketable securities $ 286 $ 184
Other assets 86 82
Total trading securities $ 372 $ 266
Available-for-Sale and Held-to-Maturity Securities
As of December 31, 2013 and 2012, the Company did not have any held-to-maturity securities. Available-for-sale securities
consisted of the following (in millions):
Gross
Unrealized Estimated
Cost Gains Losses Fair Value
2013
Available-for-sale securities:1,2
Equity securities $ 1,097 $ 373 $ (17) $ 1,453
Debt securities 3,388 24 (23) 3,389
$ 4,485 $ 397 $ (40) $ 4,842
2012
Available-for-sale securities:1,2
Equity securities $ 957 $ 441 $ (10) $ 1,388
Debt securities 3,169 46 (10) 3,205
$ 4,126 $ 487 $ (20) $ 4,593
1Refer to Note 16 for additional information related to the estimated fair value.
2During 2012, the Company made a change to its overall cash management program. In an effort to manage counterparty risk and diversify our
assets, the Company began to make additional investments in high-quality securities. These investments are primarily classified as available-for-sale
securities.
The sale and/or maturity of available-for-sale securities resulted in the following activity (in millions):
Year Ended December 31, 2013 2012 2011
Gross gains $12 $41 $5
Gross losses (24) (35) (1)
Proceeds 4,212 5,036 37
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