Coca Cola 2014 Annual Report Download - page 62

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60
Net operating revenues in the United States were $19.8 billion in 2014, or 43 percent of the Company’s consolidated net operating
revenues. We expect existing domestic cash, cash equivalents, short-term investments, marketable securities, cash flows from
operations and the issuance of debt to continue to be sufficient to fund our domestic operating activities and cash commitments for
investing and financing activities. In addition, we expect existing foreign cash, cash equivalents, short-term investments, marketable
securities and cash flows from operations to continue to be sufficient to fund our foreign operating activities and cash commitments for
investing activities.
In the future, should we require more capital to fund significant discretionary activities in the United States than is generated by our
domestic operations or is available through the issuance of debt, we could elect to repatriate future periods’ earnings from foreign
jurisdictions. This alternative could result in a higher effective tax rate. While the likelihood is remote, the Company could also elect
to repatriate earnings from foreign jurisdictions that have previously been considered to be indefinitely reinvested. Upon distribution
of those earnings in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes (net of an
adjustment for foreign tax credits) and withholding taxes payable to various foreign jurisdictions, where applicable. This alternative
could also result in a higher effective tax rate in the period in which such a determination is made to repatriate prior period foreign
earnings. Refer to Note 14 of Notes to Consolidated Financial Statements for further information related to our income taxes and
undistributed earnings of the Company’s foreign subsidiaries.
Based on all the aforementioned factors, the Company believes its current liquidity position is strong, and we will continue to meet
all of our financial obligations and other anticipated cash outflows for the foreseeable future. These obligations and anticipated cash
outflows include, but are not limited to, regular quarterly dividends, debt maturities, capital expenditures, share repurchases and
obligations included under the heading “Off-Balance Sheet Arrangements and Aggregate Contractual Obligations” below.
Cash Flows from Operating Activities
Net cash provided by operating activities for the years ended December 31, 2014, 2013 and 2012 was $10,615 million, $10,542 million
and $10,645 million, respectively.
Cash flows from operating activities increased $73 million, or 1 percent, in 2014 compared to 2013. This increase primarily reflects the
incremental pension contributions that were made in the first quarter of 2013 compared to 2014 as well as efficient management of
working capital. The increase was partially offset by an unfavorable impact of currency exchange rates during 2014.
Cash flows from operating activities decreased $103 million, or 1 percent, in 2013 compared to 2012. This decrease primarily reflects
the impact of foreign currency fluctuations, an increase in tax payments and the effect of the deconsolidation of our Philippine and
Brazilian bottling operations during 2013, partially offset by lower pension funding in 2013 compared to 2012. Refer to Note 2 of
Notes to Consolidated Financial Statements for additional information on the deconsolidation of these bottling operations. Refer to
the heading “Operations Review — Net Operating Revenues” above for additional information on the impact of foreign currency
fluctuations. Refer to Note 13 and Note 14 of Notes to Consolidated Financial Statements for additional information on the pension
funding and tax payments.
Cash Flows from Investing Activities
Our cash flows provided by (used in) investing activities are summarized as follows (in millions):
Year Ended December 31, 2014 2013 2012
Purchases of investments
$ (17,800
)$ (14,782) $ (14,824)
Proceeds from disposals of investments 12,986 12,791 7,791
Acquisitions of businesses, equity method investments and nonmarketable securities (389) (353) (1,486)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities 148 872 20
Purchases of property, plant and equipment (2,406) (2,550) (2,780)
Proceeds from disposals of property, plant and equipment 223 111 143
Other investing activities (268) (303) (268)
Net cash provided by (used in) investing activities
$ (7,506
)$ (4,214) $ (11,404)