Question

Answer the following questions based on your examination of the Coca Cola Company 2016 10-K (Link for 10k report -> http://www.annualreports.com/HostedData/AnnualReportArchive/c/NYSE_KO_2016.pdf)

1. What is the total liability dollar amount of derivative instruments designated as hedging instruments that Coca-Cola included in its 12/31/16 balance sheet?  

$178MM

$317MM

$109MM

$565MM

2. What is the total asset dollar amount of derivative instruments not designated as hedging instruments that Coca-Cola included in its 12/31/16 balance sheet?  

$178MM

$317MM

$109MM

$565MM

3. What types of Asset derivatives, designated as hedging instruments, are included in the 12/31/16 balance sheet?  

Foreign currency contracts and interest rate contracts

Foreign currency contracts, commodity contracts, and interest rate contracts

Foreign currency contracts, commodity contracts, and other derivative instruments

Foreign translation contracts

4. Do you see any evidence that Coca-Cola has capital leases?   

Yes

No

Answer 1

1. $178MM

Foreign currency contracts Accounts payable and accrued expenses $ 40

Foreign currency contracts Other liabilities $ 54

Commodity contracts Accounts payable and accrued expenses $ 1

Interest rate contracts Accounts payable and accrued expenses $ 36

Interest rate contracts Other liabilities $ 47

2. $317MM

Foreign currency contracts Prepaid expenses and other assets $ 284

Commodity contracts Prepaid expenses and other assets $ 27

Commodity contracts Other assets $ 1

Other derivative instruments Prepaid expenses and other assets $ 4

Other derivative instruments Other assets $ 1

3. Foreign currency contracts, commodity contracts, and interest rate contracts

Foreign currency contracts Prepaid expenses and other assets $ 400

Foreign currency contracts Other assets $ 60

Interest rate contracts Other assets $ 105

4. Yes

In a note "Property, Plant and Equipment", it is mentioned,

"Leasehold improvements are amortized using the straightline method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $1,575 million, $1,735 million and $1,716 million in 2016, 2015 and 2014, respectively. Amortization expense for leasehold improvements totaled $22 million, $18 million and $20 million in 2016, 2015 and 2014, respectively"