Coca Cola 2015 Annual Report Download - page 60

Interest Income
Year Ended December 31, 2015 versus Year Ended December 31, 2014
Interest income was $613 million in 2015, compared to $594 million in 2014, an increase of $19 million, or 3 percent. The increase primarily reflects higher
average cash and investment balances and higher average interest rates in certain of our international locations, partially offset by the unfavorable impact of
fluctuations in foreign currency exchange rates due to a stronger U.S. dollar against most major currencies.
Year Ended December 31, 2014 versus Year Ended December 31, 2013
Interest income was $594 million in 2014, compared to $534 million in 2013, an increase of $60 million, or 11 percent. The increase primarily reflects higher
cash balances and higher average interest rates in certain of our international locations, partially offset by the unfavorable impact of fluctuations in foreign
currency exchange rates due to a stronger U.S. dollar against most major currencies.
Interest Expense
Year Ended December 31, 2015 versus Year Ended December 31, 2014
Interest expense was $856 million in 2015, compared to $483 million in 2014, an increase of $373 million, or 77 percent. The increase is primarily due to
charges of $320 million the Company recorded on the early extinguishment of certain long-term debt. These charges included the difference between the
reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair value hedging relationship. Interest expense
also increased as a result of an overall increase in the total debt balances and a shift in the mix of our debt portfolio from short-term to long-term debt. During
the year ended December 31, 2015, the Company issued SFr1,325 million, €8,500 million and $4,000 million of long-term debt. Refer to Note 5 of Notes to
Consolidated Financial Statements for additional information related to the Company's hedging program. Refer to the heading "Liquidity, Capital Resources
and Financial Position — Cash Flows from Financing Activities — Debt Financing" below and Note 10 of Notes to Consolidated Financial Statements for
additional information related to the Company's long-term debt.
Year Ended December 31, 2014 versus Year Ended December 31, 2013
Interest expense was $483 million in 2014, compared to $463 million in 2013, an increase of $20 million, or 4 percent. The increase primarily reflects the
impact of additional long-term debt the Company issued during late 2013 and 2014 as well as the unfavorable impact of interest rate swaps. In addition,
interest expense in 2013 included charges related to the Company's early extinguishment of long-term debt. Refer to Note 5 of Notes to Consolidated
Financial Statements for additional information related to the Company's hedging program. Refer to the heading "Liquidity, Capital Resources and Financial
Position — Cash Flows from Financing Activities — Debt Financing" below for additional information related to the Company's long-term debt.
Equity Income (Loss) — Net
Year Ended December 31, 2015 versus Year Ended December 31, 2014
Equity income (loss) — net represents our Company's proportionate share of net income or loss from each of our equity method investees. In 2015, equity
income was $489 million, compared to equity income of $769 million in 2014, a decrease of $280 million, or 36 percent. This decrease reflects, among other
items, the unfavorable impact of the challenging economic conditions around the world where many of our equity method investees operate and fluctuations
in foreign currency exchange rates due to a stronger U.S. dollar against most major currencies. The impact of these items was partially offset by the impact of
acquisitions of equity investees. Refer to Note 2 of Notes to Consolidated Financial Statements for additional information.
Year Ended December 31, 2014 versus Year Ended December 31, 2013
In 2014, equity income was $769 million, compared to equity income of $602 million in 2013, an increase of $167 million, or 28 percent. This increase was
primarily due to more favorable operating results reported by several of our equity method investees, a decrease in the impact of unusual or infrequent
charges recorded by certain of our equity method investees, and the deconsolidation of our Brazilian bottling operations during 2013, which is now an
equity method investee. This increase was partially offset by the unfavorable impact of foreign currency fluctuations.
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