Coca Cola 2014 Annual Report Download - page 104

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102
NOTE 9: ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the following (in millions):
December 31, 2014 2013
Accrued marketing
$ 2,103 $ 2,407
Other accrued expenses
3,182 3,515
Trade accounts payable 2,089 1,933
Accrued compensation
997 933
Sales, payroll and other taxes
511 450
Container deposits
352 339
Accounts payable and accrued expenses
$ 9,234 $ 9,577
NOTE 10: DEBT AND BORROWING ARRANGEMENTS
Short-Term Borrowings
Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2014 and 2013, we
had $19,010 million and $16,853 million, respectively, in outstanding commercial paper borrowings. Our weighted-average interest
rates for commercial paper outstanding were approximately 0.2 percent and 0.2 percent per year as of December 31, 2014 and 2013,
respectively.
In addition, we had $8,723 million in lines of credit and other short-term credit facilities as of December 31, 2014. The Company’s
total lines of credit included $120 million that was outstanding and primarily related to our international operations.
Included in the credit facilities discussed above, the Company had $7,677 million in lines of credit for general corporate purposes.
These backup lines of credit expire at various times from 2015 through 2019. There were no borrowings under these backup lines of
credit during 2014. These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements
require compensating balances, none of which is presently significant to our Company.
Long-Term Debt
During 2014, the Company issued $3,537 million of long-term debt. The general terms of the notes issued are as follows:
• $1,000 million total principal amount of notes due September 1, 2015, at a variable interest rate equal to the three-month
London Interbank Offered Rate (“LIBOR”) plus 0.01 percent;
• $1,015 million total principal amount of euro notes due September 22, 2022, at a fixed interest rate of 1.125 percent; and
• $1,522 million total principal amount of euro notes due September 22, 2026, at a fixed interest rate of 1.875 percent.
During 2014, the Company retired $1,000 million of long-term debt upon maturity.
During 2013, the Company issued $7,500 million of long-term debt. The general terms of the notes issued are as follows:
• $500 million total principal amount of notes due March 5, 2015, at a variable interest rate equal to the three-month LIBOR
minus 0.02 percent;
• $500 million total principal amount of notes due November 1, 2016, at a variable interest rate equal to the three-month LIBOR
plus 0.10 percent;
• $500 million total principal amount of notes due November 1, 2016, at a fixed interest rate of 0.75 percent;
• $1,250 million total principal amount of notes due April 1, 2018, at a fixed interest rate of 1.15 percent;
• $1,250 million total principal amount of notes due November 1, 2018, at a fixed interest rate of 1.65 percent;
• $1,250 million total principal amount of notes due November 1, 2020, at a fixed interest rate of 2.45 percent;
• $750 million total principal amount of notes due April 1, 2023, at a fixed interest rate of 2.50 percent; and
• $1,500 million total principal amount of notes due November 1, 2023, at a fixed interest rate of 3.20 percent.