Coca Cola 2013 Annual Report Download - page 94

exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates,
foreign currency exchange rates, commodity rates or other financial indices. The Company does not view the fair values of its
derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions or other
exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets.
The following table presents the fair values of the Company’s derivative instruments that were designated and qualified as part of
a hedging relationship (in millions):
Fair Value1,2
December 31, December 31,
Derivatives Designated as Hedging Instruments Balance Sheet Location12013 2012
Assets:
Foreign currency contracts Prepaid expenses and other assets $ 211 $ 149
Foreign currency contracts Other assets 109 —
Commodity contracts Prepaid expenses and other assets 1—
Interest rate contracts Prepaid expenses and other assets —7
Interest rate contracts Other assets 283 335
Total assets $ 604 $ 491
Liabilities:
Foreign currency contracts Accounts payable and accrued expenses $84 $55
Foreign currency contracts Other liabilities 40 —
Commodity contracts Accounts payable and accrued expenses 11
Interest rate contracts Other liabilities —6
Total liabilities $ 125 $62
1All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally
enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure
requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer
to Note 16 for the net presentation of the Company’s derivative instruments.
2Refer to Note 16 for additional information related to the estimated fair value.
The following table presents the fair values of the Company’s derivative instruments that were not designated as hedging
instruments (in millions):
Fair Value1,2
December 31, December 31,
Derivatives Not Designated as Hedging Instruments Balance Sheet Location12013 2012
Assets:
Foreign currency contracts Prepaid expenses and other assets $21 $19
Foreign currency contracts Other assets 171 42
Commodity contracts Prepaid expenses and other assets 33 72
Commodity contracts Other assets 1—
Other derivative instruments Prepaid expenses and other assets 96
Total assets $ 235 $ 139
Liabilities:
Foreign currency contracts Accounts payable and accrued expenses $24 $24
Foreign currency contracts Other liabilities —1
Commodity contracts Accounts payable and accrued expenses 23 43
Commodity contracts Other liabilities —1
Interest rate contracts Other liabilities 3—
Other derivative instruments Accounts payable and accrued expenses —2
Total liabilities $50 $71
1All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally
enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure
requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer
to Note 16 for the net presentation of the Company’s derivative instruments.
2Refer to Note 16 for additional information related to the estimated fair value.
92