Borrowing Cost Capitalization

Capitalizing the Borrowing Cost

Muhammad Akber Ansari Muhammad Arsalan Ashraf Rafay Naeem Shozab Abid

1. The Coca-Cola Company and Subsidiaries of North America 2. Azgard-9 Limited 3. Siemens Pakistan 4. Dadabhoy Cement Industries Limited

12/19/2013

1. The Coca-Cola Company and Subsidiaries of North America  Reference: Annual Report 2011  Bibliography: http://assets.cocacolacompany.com/b6/f3/ecad445f4fc1819dd37e04e057ad/form_10K_2011.pdf  The principal United States market in which the Company’s common stock is listed and traded is the New York Stock Exchange

In the Notes to Consolidated Financial Statements, Note 2, “ACQUISITIONS AND DIVESTITURES” the Company acquired the 67 percent of CCE’s North American business. The acquisition led to the purchase of Non-current assets as well, including PP &E. Below is the detail of the acquisition cost.

In NOTE 10, “DEBT AND BORROWING ARRANGEMENTS, Short-Term Borrowings” section, Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2011 and 2010, the company had $12,135 million and $7,535 million, respectively. In 2010, the Company assumed $266 million of short-term borrowings in connection with the acquisition of CCE’s North American business including the fixed assets. In NOTE 10, “DEBT AND BORROWING ARRANGEMENTS, Long-Term Borrowings” section, during 2011, the Company issued $2,979 million of long-term debt. It used $979 million of this newly issued debt and paid a premium of $208 million to exchange $1,022 million of existing long-term debt that was assumed in connection with our acquisition of CCE’s North American business. During the fourth quarter of 2011, the Company extinguished long-term debt that had a carrying value of $20 million and was not scheduled to mature until 2012. This debt was outstanding prior to the Company’s acquisition of CCE’s North American business. During 2010, in connection with the Company’s acquisition of CCE’s North...