Coca Cola 2014 Annual Report Download - page 64

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62
Property, Plant and Equipment
Purchases of property, plant and equipment net of disposals for the years ended December 31, 2014, 2013 and 2012 were
$2,183 million, $2,439 million and $2,637 million, respectively. Total capital expenditures for property, plant and equipment and the
percentage of such totals by operating segment were as follows (in millions):
Year Ended December 31,
2014 2013 2012
Capital expenditures
$
2,406 $ 2,550 $ 2,780
Eurasia & Africa 1.3% 1.6% 1.8%
Europe 2.2 1.3 1.1
Latin America 2.3 2.5 3.2
North America 53.7 53.9 52.0
Asia Pacific 3.2 4.6 3.9
Bottling Investments 26.1 25.2 31.2
Corporate 11.2 10.9 6.8
We expect our annual 2015 capital expenditures to be $2.5 billion to $3.0 billion as we continue to make investments to enable growth
in our business and further enhance our operational effectiveness.
Other Investing Activities
In 2014, other investing activities were primarily related to loans to Fairlife, LLC, a value-added dairy joint venture, as well as local
investments in Argentina.
In 2013, other investing activities were primarily related to the acquisition of trademarks and certain other intangible assets. None of
these investments was individually significant.
In 2012, other investing activities were primarily related to the Company’s consolidated Philippine and Brazilian bottling operations
being classified as held for sale as of December 31, 2012. Refer to Note 2 of Notes to Consolidated Financial Statements for additional
information on these transactions. The cash flow impact of these transactions in other investing activities represents the balance of
cash and cash equivalents held by these entities being transferred to assets held for sale.
Cash Flows from Financing Activities
Our cash flows provided by (used in) financing activities were as follows (in millions):
Year Ended December 31, 2014 2013 2012
Issuances of debt
$
41,674 $ 43,425 $ 42,791
Payments of debt (36,962) (38,714) (38,573)
Issuances of stock 1,532 1,328 1,489
Purchases of stock for treasury (4,162) (4,832) (4,559)
Dividends (5,350) (4,969) (4,595)
Other financing activities (363) 17 100
Net cash provided by (used in) financing activities
$
(3,631) $ (3,745) $ (3,347)
Debt Financing
Our Company maintains debt levels we consider prudent based on our cash flows, interest coverage ratio and percentage of debt to
capital. We use debt financing to lower our overall cost of capital, which increases our return on shareowners’ equity. This exposes us
to adverse changes in interest rates. Our interest expense may also be affected by our credit ratings.
As of December 31, 2014, our long-term debt was rated “AA” by Standard & Poor’s, “Aa3” by Moody’s and “A+” by Fitch. Our
commercial paper program was rated “A-1+” by Standard & Poor’s, “P-1” by Moody’s and “F-1” by Fitch. In assessing our
credit strength, all three agencies consider our capital structure (including the amount and maturity dates of our debt) and
financial policies as well as the aggregated balance sheet and other financial information of the Company. In addition, some
rating agencies also consider the financial information of certain bottlers, including New CCE, Coca-Cola Amatil Limited,
Coca-Cola Bottling Co. Consolidated, Coca-Cola FEMSA and Coca-Cola Hellenic. While the Company has no legal obligation
for the debt of these bottlers, the rating agencies believe the strategic importance of the bottlers to the Company’s business