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UsetheselinkstorapidlyreviewthedocumentTABLEOFCONTENTSTABLEOFCONTENTS
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CALCULATIONOFREGISTRATIONFEE
TitleofEachClassofSecuritiestobeRegistered
AmounttobeRegistered
ProposedMaximumAggregateOfferingPricePerUnit
ProposedMaximumAggregateOffering
Price
AmountofRegistrationFee(1)
1.750%Notesdue2024 $1,000,000,000 99.819% $998,190,000
2.125%Notesdue2029 $1,000,000,000 99.964% $999,640,000
Total $2,000,000,000 $1,997,830,000 $242,137
(1) CalculatedinaccordancewithRule457(r)oftheSecuritiesActof1933,asamended.
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FiledpursuanttoRule424(b)(2)RegistrationNo.333-214273
PROSPECTUSSUPPLEMENT(ToProspectusDatedMay22,2017)
$2,000,000,000
$1,000,000,0001.750%Notesdue2024
$1,000,000,0002.125%Notesdue2029
Weareoffering$1,000,000,000principalamountof1.750%Notesdue2024,whichwerefertointhisprospectussupplementasthe"2024notes,"and$1,000,000,000principalamountof2.125%Notesdue2029,whichwerefertointhisprospectussupplementasthe"2029notes."Wecollectivelyrefertoalloftheseriesofnotesofferedherebyasthe"notes."
The2024noteswillbearinterestatarateperannumof1.750%,andthe2029noteswillbearinterestatarateperannumof2.125%.Wewillpayinterestonthenotessemi-annuallyinarrearsonMarch6andSeptember6ofeachyear,beginningonMarch6,2020.The2024noteswillmatureonSeptember6,2024andthe2029noteswillmatureonSeptember6,2029.Wemayredeemanyseriesofthenotesatouroptionandatanytime,eitherinwholeorinpart,attheapplicableredemptionpricedescribedinthisprospectussupplement.Thenoteswillbeourunsecuredobligationsandwillrankequallywithourunsecuredseniorindebtednessfromtimetotimeoutstanding.Thenoteswillbeissuedonlyindenominationsof$2,000andinintegralmultiplesof$1,000inexcessthereof.
Thenoteswillnotbelistedonanysecuritiesexchangeorquotedonanyautomatedquotationsystem.Thereiscurrentlynopublicmarketforanyseriesofthenotes.
Investinginthenotesinvolvesrisks.See"RiskFactors"inourAnnualReportonForm10-KfortheyearendedDecember31,2018,whichisincorporatedbyreferenceintothisprospectussupplementandtheaccompanyingprospectus.
NoneoftheSecuritiesandExchangeCommission,anystatesecuritiescommissionoranyotherregulatorybodyhasapprovedordisapprovedofthenotesorpassedupontheaccuracyoradequacyofthisprospectussupplementortheaccompanyingprospectus.Anyrepresentationtothecontraryisacriminaloffense.
Per2024Note Total
Per2029Note Total
Publicofferingprice 99.819% $ 998,190,000 99.964% $ 999,640,000
Underwritingdiscounts 0.350% $ 3,500,000 0.450% $ 4,500,000
Proceeds,beforeexpenses,toTheCoca-ColaCompany 99.469% $ 994,690,000 99.514% $ 995,140,000
Thepublicofferingpricessetforthabovedonotincludeaccruedinterest,ifany.InterestonthenoteswillaccruefromSeptember6,2019.
Theunderwritersexpecttodeliverthenotestoinvestorsinbook-entryformonlythroughTheDepositoryTrustCompanyfortheaccountsofitsparticipants,includingClearstreamBanking,societé anonymeandEuroclearBankS.A./N.V.,onoraboutSeptembr6,2019.
Joint Book-Running Managers
Co-Managers
Citigroup CreditSuisse J.P.Morgan
BNPPARIBAS WellsFargoSecurities
AcademySecurities ANZSecurities CastleOakSecurities,L.P.
ThedateofthisprospectussupplementisSeptember4,2019.
R.Seelaus&Co.,LLC Ramirez&Co.,Inc.
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TABLEOFCONTENTS
ProspectusSupplement
Page ABOUTTHISPROSPECTUSSUPPLEMENT S-iCAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS S-iSUMMARY S-1USEOFPROCEEDS S-4CAPITALIZATION S-5DESCRIPTIONOFNOTES S-6U.S.FEDERALINCOMETAXCONSIDERATIONSTONON-U.S.HOLDERS S-10UNDERWRITING S-13LEGALOPINIONS S-18
Prospectus
ABOUTTHISPROSPECTUS 1
WHEREYOUCANFINDMOREINFORMATION 1CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 2OURCOMPANY 4USEOFPROCEEDS 5RATIOOFEARNINGSTOFIXEDCHARGES 5DESCRIPTIONOFDEBTSECURITIES 6DESCRIPTIONOFCAPITALSTOCK 20DESCRIPTIONOFWARRANTS 24DESCRIPTIONOFDEPOSITARYSHARES 25DESCRIPTIONOFPURCHASECONTRACTS 28DESCRIPTIONOFGUARANTEES 29PLANOFDISTRIBUTION 30LEGALMATTERS 32EXPERTS 32
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Inthisprospectussupplement,exceptasotherwiseindicatedorthecontextotherwiserequires,theterms"TheCoca-ColaCompany,""Company,""we,""us"and"our"meanTheCoca-ColaCompanyandallentitiesincludedinitsconsolidatedfinancialstatements.
ABOUTTHISPROSPECTUSSUPPLEMENT
Weprovideinformationtoyouaboutthisofferingintwoseparatedocuments.Theaccompanyingprospectusprovidesgeneralinformationaboutusandsecuritieswemayofferfromtimetotime,someofwhichmaynotapplytothisoffering.Thisprospectussupplementdescribesthespecificdetailsregardingthisoffering.Generally,whenwerefertothe"prospectus,"wearereferringtobothdocumentscombined.Additionalinformationisincorporatedbyreferenceintothisprospectussupplement.Ifinformationinthisprospectussupplementisinconsistentwiththeaccompanyingprospectus,youshouldrelyonthisprospectussupplement.
Youshouldrelyonlyontheinformationcontainedorincorporatedbyreferenceintothisprospectussupplement,theaccompanyingprospectusoranyrelatedfreewritingprospectusfiledbyuswiththeSecuritiesandExchangeCommission(the"SEC").Wehavenot,andtheunderwritershavenot,authorizedanyoneelsetoprovideyouwithdifferentoradditionalinformation.Ifanyoneprovidesyouwithdifferentorinconsistentinformation,youshouldnotrelyonit.Wearenot,andtheunderwritersarenot,makinganoffertosellthesesecuritiesinanyjurisdictionwheretheofferandsaleisnotpermitted.Youshouldnotassumethattheinformationinthisprospectussupplement,theaccompanyingprospectus,anyfreewritingprospectusoranydocumentincorporatedbyreferenceisaccurateasofanydateotherthantheirrespectivedates.Ourbusiness,financialcondition,resultsofoperationsandprospectsmayhavechangedsincethosedates.
CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS
Thisprospectussupplementandthedocumentsincorporatedbyreferencehereinmaycontainstatements,estimatesorprojectionsthatconstitute"forward-lookingstatements"asdefinedunderU.S.federalsecuritieslaws.Generally,thewords"believe,""expect,""intend,""estimate,""anticipate,""project,""will"andsimilarexpressionsidentifyforward-lookingstatements,whichgenerallyarenothistoricalinnature.Forward-lookingstatementsaresubjecttocertainrisksanduncertaintiesthatcouldcauseTheCoca-ColaCompany'sactualresultstodiffermateriallyfromitshistoricalexperienceandourpresentexpectationsorprojections.Theserisksinclude,butarenotlimitedto,obesityconcerns;evolvingconsumerproductandshoppingpreferences;increasedcompetition;waterscarcityandpoorquality;increaseddemandforfoodproductsanddecreasedagriculturalproductivity;productsafetyandqualityconcerns;perceivednegativehealthconsequencesofcertainingredients,suchasnon-nutritivesweetenersandbiotechnology-derivedsubstances,andofothersubstancespresentinourbeverageproductsorpackagingmaterials;aninabilitytobesuccessfulinourinnovationactivities;aninabilitytoprotectourinformationsystemsagainstserviceinterruption,misappropriationofdataorbreachesofsecurity;failuretocomplywithpersonaldataprotectionlaws;failuretodigitizetheCoca-Colasystem,changesintheretaillandscapeorthelossofkeyretailorfoodservicecustomers;aninabilitytoexpandoperationsinemerginganddevelopingmarkets;fluctuationsinforeigncurrencyexchangerates;interestrateincreases;aninabilitytomaintaingoodrelationshipswithourbottlingpartners;adeteriorationinourbottlingpartners'financialcondition;increasesinincometaxrates,changesinincometaxlawsorunfavorableresolutionoftaxmatters;increasedornewindirecttaxesintheUnitedStatesorinoneormoreothermajormarkets;aninabilitytorealizetheeconomicbenefitsweanticipatefromourproductivityandreinvestmentprogram,oraninabilitytosuccessfullymanageitspossiblenegativeconsequences;aninabilitytoattractorretainahighlyskilledworkforce;increasedcost,disruptionofsupplyorshortageofenergyorfuel;increasedcost,disruptionofsupplyorshortageofingredients,otherrawmaterials,packagingmaterials,aluminumcansandothercontainers;changesinlawsandregulationsrelatingtobeveragecontainersandpackaging;significantadditionallabelingor
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warningrequirementsorlimitationsonthemarketingorsaleofourproducts;unfavorablegeneraleconomicconditionsintheUnitedStates;unfavorableeconomicandpoliticalconditionsininternationalmarkets;litigationorlegalproceedings;conductingbusinessinmarketswithhigh-risklegalcomplianceenvironments;failurebyourthird-partyserviceprovidersandbusinesspartnerstosatisfactorilyfulfilltheircommitmentsandresponsibilities;failuretoadequatelyprotect,ordisputesrelatingto,trademarks,formulaeandotherintellectualpropertyrights;adverseweatherconditions;climatechange;damagetoourbrandimageandcorporatereputationfromnegativepublicity,whetherornotwarranted,concerningproductsafetyorquality,humanandworkplacerights,obesityorotherissues;changesin,orfailuretocomplywith,thelawsandregulationsapplicabletoourproductsorourbusinessoperations;changesinaccountingstandards;aninabilitytoachieveouroveralllong-termgrowthobjectives;deteriorationofglobalcreditmarketconditions;defaultbyorfailureofoneormoreofourcounterpartyfinancialinstitutions;aninabilitytorenewcollectivebargainingagreementsonsatisfactoryterms,orweorourbottlingpartnersexperiencestrikes,workstoppagesorlaborunrest;futureimpairmentcharges;multi-employerplanwithdrawalliabilitiesinthefuture;aninabilitytosuccessfullyintegrateandmanageourCompany-ownedor-controlledbottlingoperations;aninabilitytosuccessfullymanageourrefranchisingactivities;failuretorealizeasignificantportionoftheanticipatedbenefitsofourstrategicrelationshipwithMonsterBeverageCorporation;globalorregionalcatastrophicevents;andotherrisksdiscussedinourfilingswiththeSEC,includingourAnnualReportonForm10-KfortheyearendedDecember31,2018,whichfilingsareavailablefromtheSEC.Youshouldnotplaceunduerelianceonforward-lookingstatements,whichspeakonlyatthedatetheyaremade.Weundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatements.
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SUMMARY
This summary highlights selected information contained in, or incorporated by reference into, this prospectus supplement and the accompanyingprospectus and does not contain all of the information that you should consider in making your investment decision. You should read this summary togetherwith the more detailed information appearing elsewhere in this prospectus supplement, as well as the information in the accompanying prospectus and inthe documents incorporated by reference into this prospectus supplement or the accompanying prospectus. You should carefully consider, among otherthings, the matters discussed in the sections titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018, which isincorporated by reference into this prospectus supplement and the accompanying prospectus.
OurCompany
General
TheCoca-ColaCompanyistheworld'slargestnonalcoholicbeveragecompany.Weownorlicenseandmarketmorethan500nonalcoholicbeveragebrands,whichwegroupintothefollowingcategoryclusters:sparklingsoftdrinks;water,enhancedwaterandsportsdrinks;juice,dairyandplant-basedbeverages;teaandcoffee;andenergydrinks.Weownandmarketfouroftheworld'stopfivenonalcoholicsparklingsoftdrinkbrands:Coca-Cola,DietCoke,FantaandSprite.Finishedbeverageproductsbearingourtrademarks,soldintheUnitedStatessince1886,arenowsoldinmorethan200countriesandterritories.
Wemakeourbrandedbeverageproductsavailabletoconsumersthroughouttheworldthroughournetworkofindependentbottlingpartners,distributors,wholesalersandretailersaswellasCompany-ownedor—controlledbottlinganddistributionoperations—theworld'slargestbeveragedistributionsystem.Beveragesbearingtrademarksownedbyorlicensedtousaccountformorethan1.9billionoftheapproximately61billionservingsofallbeveragesconsumedworldwideeveryday.
Webelieveoursuccessdependsonourabilitytoconnectwithconsumersbyprovidingthemwithawidevarietyofbeverageoptionstomeettheirdesires,needsandlifestyles.Oursuccessfurtherdependsontheabilityofourpeopletoexecuteeffectively,everyday.
OurobjectiveistouseourCompany'sassets—ourbrands,financialstrength,unrivaleddistributionsystem,globalreach,andthetalentandstrongcommitmentofourmanagementandassociates—tobecomemorecompetitiveandtoaccelerategrowthinamannerthatcreatesvalueforourshareowners.
WewereincorporatedinSeptember1919underthelawsoftheStateofDelawareandsucceededtothebusinessofaGeorgiacorporationwiththesamenamethathadbeenorganizedin1892.
OurprincipalofficeislocatedatOneCoca-ColaPlaza,Atlanta,Georgia30313,andourtelephonenumberatthataddressis(404)676-2121.Wemaintainawebsiteatwww.coca-colacompany.comwheregeneralinformationaboutusisavailable.Wearenotincorporatingthecontentsofthewebsiteintothisprospectussupplementortheaccompanyingprospectus.
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TheOffering
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Issuer TheCoca-ColaCompany.
SecuritiesOffered$1,000,000,000principalamountof1.750%Notesdue2024.
$1,000,000,000principalamountof2.125%Notesdue2029.
MaturityDateThe2024notes:September6,2024.
The2029notes:September6,2029.
InterestRateThe2024notes:1.750%perannum,payablesemi-annuallyinarrears.
The2029notes:2.125%perannum,payablesemi-annuallyinarrears.
InterestPaymentDatesThe2024notes:March6andSeptember6ofeachyear,commencingonMarch6,2020.
The2029notes:March6andSeptember6ofeachyear,commencingonMarch6,2020.
OptionalRedemptionWemayredeemanyseriesofthenotesatouroptionandatanytime,eitherasawholeorinpart,attheapplicableredemptionpricedescribedunder"DescriptionofNotes—OptionalRedemption."
RankingThenoteswillbeourunsecuredobligationsandwillrankequallywithourunsecuredseniorindebtednessfromtimetotimeoutstanding.
FurtherIssuesWemay,atanytime,withoutnoticetoortheconsentoftheholdersofthenotes,createandissuefurthernotesrankingequallywithanyseriesofthenotesinallrespects(orinallrespectsotherthanthepaymentofinterestaccruingpriortotheissuedateofsuchfurthernotesorexceptfor,insomecases,thefirstpaymentofinterestfollowingtheissuedateofsuchfurthernotes).
Book-Entry;FormandDenominationsWewillissuethenotesofeachseriesintheformofoneormoreglobalnotesindefinitive,fullyregistered,book-entryform.TheglobalnoteswillbedepositedwithoronbehalfofTheDepositoryTrustCompany("DTC")andregisteredinthenameofCede&Co.,asnomineeofDTC.Thenoteswillbeissuedonlyindenominationsof$2,000andinintegralmultiplesof$1,000inexcessthereof.
UseofProceedsWeexpecttousethenetproceedsfromtheofferingforgeneralcorporatepurposes.See"UseofProceeds."
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TaxConsiderations YoushouldconsultyourtaxadvisorwithrespecttotheU.S.federalincometaxconsequencesofpurchasing,owninganddisposingofthenotesthenotesinlightofyourownparticularsituationandwithrespecttoanytaxconsequencesarisingunderthelawsofanystate,local,foreignorothertaxingjurisdiction.See"U.S.FederalIncomeTaxConsiderationstoNon-U.S.Holders."
GoverningLawTheseniorindentureisgovernedandthenoteswillbegovernedbythelawsoftheStateofNewYork.
TrusteeDeutscheBankTrustCompanyAmericas.
RiskFactorsSee"RiskFactors"inourAnnualReportonForm10-KfortheyearendedDecember31,2018foradiscussionofcertainrelevantfactorsyoushouldcarefullyconsiderbeforedecidingtoinvestinthenotes.
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USEOFPROCEEDS
Weestimatethatwewillreceivenetproceedsfromtheofferingofapproximately$1.99billionafterdeductingtheunderwritingdiscountsandestimatedexpensesoftheofferingpayablebyus.
Weexpecttousethenetproceedsfromtheofferingforgeneralcorporatepurposes,whichmayincludeworkingcapital,capitalexpenditures,acquisitionsoforinvestmentsinbusinessesorassets,redemptionandrepaymentofshort-termorlong-termborrowingsandpurchasesofourcommonstock.Pendingapplicationofthenetproceeds,wemaytemporarilyinvestthenetproceedsinshort-termmarketablesecurities.
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CAPITALIZATION
ThefollowingtablepresentsthecapitalizationoftheCompanyanditsconsolidatedsubsidiariesatJune28,2019andasadjustedtogiveeffecttothisofferingandtheintendedapplicationoftheestimatednetproceedsofthisofferingassetforthin"UseofProceeds."Youshouldreadthefollowinginformationinconjunctionwithourconsolidatedfinancialstatementsandthenotestothosefinancialstatementsandtheinformationundertheheading"Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations"inourQuarterlyReportonForm10-QforthesixmonthsendedJune28,2019,whichisincorporatedbyreferenceintothisprospectussupplement.
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AtJune28,2019
(Inmillions) Actual As
Adjusted Cash,cashequivalentsandshort-terminvestments: Cashandcashequivalents $ 6,731 $ 8,718Short-terminvestments 2,572 2,572
Cash, cash equivalents and short-term investments $ 9,303 $ 11,290Debt,includingcurrentportion: Loansandnotespayable $ 13,030 $ 13,030Currentportionoflong-termdebt 2,749 2,749Notesoutstanding 29,296 29,296Notesofferedhereby — 1,998
Total debt $ 45,075 $ 47,073Total debt less cash, cash equivalents and short-term investments $ 35,772 $ 35,783
Total shareowners' equity $ 20,295 $ 20,295Total capitalization $ 65,370 $ 67,368
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DESCRIPTIONOFNOTES
The following summary of the terms of the notes supplements the general description of debt securities contained in the accompanying prospectus. To theextent the following terms are inconsistent with the general description contained in the accompanying prospectus, the following terms replace such inconsistentterms. You should read both the accompanying prospectus and this prospectus supplement in their entirety.
General
The2024notes:
• willbeinanaggregateinitialprincipalamountof$1,000,000,000,subjecttoourabilitytoissueadditionalnoteswhichmaybeofthesameseriesasthe2024notesasdescribedunder"—FurtherIssues";
• willmatureonSeptember6,2024;
• willbearinterestatarateof1.750%perannum;
• willbeourseniordebt,rankingequallywithallourotherpresentandfutureunsecuredandunsubordinatedindebtedness;
• willbeissuedinminimumdenominationsof$2,000andinintegralmultiplesof$1,000inexcessthereof;
• willberepaidatparatmaturity;
• willberedeemablebyusatanytimepriortomaturityasdescribedbelowunder"—OptionalRedemption";and
• willnotbesubjecttoanysinkingfund.
The2029notes:
• willbeinanaggregateinitialprincipalamountof$1,000,000,000,subjecttoourabilitytoissueadditionalnoteswhichmaybeofthesameseriesasthe2029notesasdescribedunder"—FurtherIssues";
• willmatureonSeptember6,2029;
• willbearinterestatarateof2.125%perannum;
• willbeourseniordebt,rankingequallywithallourotherpresentandfutureunsecuredandunsubordinatedindebtedness;
• willbeissuedinminimumdenominationsof$2,000andinintegralmultiplesof$1,000inexcessthereof;
• willberepaidatparatmaturity;
• willberedeemablebyusatanytimepriortomaturityasdescribedbelowunder"—OptionalRedemption";and
• willnotbesubjecttoanysinkingfund.
Thenotesofferedbythisprospectussupplementareseniordebtsecuritiesissuedunderourseniorindenture,datedApril26,1988,asamended(the"seniorindenture"),withDeutscheBankTrustCompanyAmericas,assuccessortoBankersTrustCompany,astrustee.TheseniorindentureissubjecttotheprovisionsoftheTrustIndentureActof1939,asamended.
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Theseniorindentureandthenotesdonotlimittheamountofunsecuredindebtednessthatmaybeincurredortheamountofsecuritiesthatmaybeissuedbyus.Wemayissuedebtsecuritiesundertheseniorindentureinoneormoreseries,eachwithdifferentterms,uptotheaggregateprincipalamountwhichwemayauthorizefromtimetotime.Wealsohavetherightto"re-open"apreviousissueofaseriesofdebtsecuritiesbyissuingadditionaldebtsecuritiesofsuchseries.
InapplicabilityofDefeasance,Lien,SaleandLeasebackProvisions
Thedefeasanceprovisionsdescribedintheaccompanyingprospectusunder"DescriptionofDebtSecurities—DefeasanceoftheIndenturesandSecurities"andinSection12.01(b)oftheseniorindenturewillnotbeapplicabletothenotes.Thelienandsaleandleasebackprovisionsdescribedintheaccompanyingprospectusunder"DescriptionofDebtSecurities—RestrictiveCovenants"andinSections5.03and5.04oftheseniorindenturewillnotbeapplicabletothenotes.
InterestontheNotes
InterestonthenoteswillaccruefromandincludingSeptember6,2019orfromandincludingthemostrecentinterestpaymentdatetowhichinteresthasbeenpaidorprovidedfor.Wewillmakeinterestpaymentsonthenotessemi-annuallyonMarch6andSeptember6ofeachyear,withthefirstinterestpaymentbeingmadeonMarch6,2020.Wewillmakeinterestpaymentstothepersoninwhosenamethenotesareregisteredatthecloseofbusinessonthefifteenthcalendarday(whetherornotabusinessday)precedingtherespectiveinterestpaymentdate.
Iftheinterestpaymentdateisnotabusinessdayattherelevantplaceofpayment,paymentofinterestwillbemadeonthenextdaythatisabusinessdayatsuchplaceofpaymentandnointerestwillaccrueasaresultofsuchdelayedpaymentonamountspayablefromandaftersuchinterestpaymentdatetothenextsucceedingbusinessday.Forthepurposesofthenotes,"businessday"meansanydaythatisnotaSaturdayorSundayandthatisnotadayonwhichbankinginstitutionsaregenerallyauthorizedorobligatedbylaworexecutiveordertocloseintheCityofNewYorkand,foranyplaceofpaymentoutsideoftheCityofNewYork,insuchplaceofpayment.Interestonthenoteswillbecomputedonthebasisofa360-dayyearconsistingoftwelve30-daymonths.
OptionalRedemption
Meaning of terms
Wemayredeemanyseriesofthenotesatouroptionasdescribedbelow.See"—Ourredemptionrights."Thefollowingtermsarerelevanttothedeterminationoftheredemptionpricesofthenotes:
Whenweusetheterm"Treasuryrate,"wemean,withrespecttoanyredemptiondate,therateperannumequaltothesemi-annualequivalentyieldtomaturityofthecomparableTreasuryissue(asdefinedbelow).Indeterminingthisrate,weassumeapriceforthecomparableTreasuryissue(expressedasapercentageofitsprincipalamount)equaltothecomparableTreasuryprice(asdefinedbelow)forsuchredemptiondate.
Whenweusetheterm"comparableTreasuryissue,"wemeantheUnitedStatesTreasurysecurityselectedbyanindependentinvestmentbanker(asdefinedbelow)ashavingamaturitycomparabletotheremainingtermofthenotestoberedeemedthatwouldbeutilized,atthetimeofselectionandinaccordancewithcustomaryfinancialpractice,inpricinganewissueofcorporatedebtsecuritiesofcomparablematuritytotheremainingtermofsuchnotes.
"independentinvestmentbanker"meanseachofCitigroupGlobalMarketsInc.,CreditSuisseSecurities(USA)LLC,andJ.P.MorganSecuritiesLLC,andtheirrespectivesuccessorsasmaybeappointedfromtimetotimebyus;provided,however,thatifanyoftheforegoingshallceasetobea
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primaryU.S.GovernmentsecuritiesdealerintheUnitedStates,ora"primaryTreasurydealer,"weshallsubstitutethereforanotherprimaryTreasurydealer.
Whenweusetheterm"comparableTreasuryprice,"wemean,withrespecttoanyredemptiondate(1),thearithmeticaverageofthereferenceTreasurydealerquotations(asdefinedbelow)forsuchredemptiondate,afterexcludingthehighestandlowestofsuchreferenceTreasurydealerquotations,or(2)ifweobtainfewerthanthreesuchreferenceTreasurydealerquotations,thearithmeticaverageofallreferenceTreasurydealerquotationsobtained,or(3)ifonlyonereferenceTreasurydealerquotationisobtained,suchreferenceTreasurydealerquotation.
"referenceTreasurydealerquotations"means,withrespecttoeachreferenceTreasurydealerandanyredemptiondate,thearithmeticaverage,asdeterminedbyus,ofthebidandaskedpricesforthecomparableTreasuryissue(expressedineachcaseasapercentageofitsprincipalamount)quotedinwritingtousbysuchreferenceTreasurydealerby5:00p.m.onthethirdbusinessdayprecedingsuchredemptiondate.
"referenceTreasurydealer"meanseachofCitigroupGlobalMarketsInc.,CreditSuisseSecurities(USA)LLC,andJ.P.MorganSecuritiesLLC,andtheirrespectivesuccessors;provided,however,thatifanyoftheforegoingshallceasetobeaprimaryTreasurydealer,theCompanyshallsubstitutethereforanotherprimaryTreasurydealer.
Whenweusetheterm"remainingscheduledpayments,"wemean,withrespecttoanynote,theremainingscheduledpaymentsoftheprincipalthereoftoberedeemedandinterestthereonthatwouldbedueaftertherelatedredemptiondatebutforsuchredemption;provided,however,that,ifsuchredemptiondateisnotaninterestpaymentdatewithrespecttosuchnote,theamountofthenextscheduledinterestpaymentthereonwillbereducedbytheamountofinterestaccruedthereontosuchredemptiondate.
Our redemption rights
Wemayredeemanyseriesofnotesatouroptionandatanytime,eitherasawholeorinpart.Ifweelecttoredeemaseriesofnotes,wewillpayaredemptionpriceequaltothegreaterof:
• 100%oftheprincipalamountofthenotestoberedeemed,plusaccruedandunpaidinterestto,butexcluding,theredemptiondate;and
• thesumofthepresentvaluesoftheremainingscheduledpayments,plusaccruedandunpaidinterestto,butexcluding,theredemptiondate(excludinganyportionofsuchpaymentsofinterestaccruedasofthedateofredemption).
Indeterminingthepresentvalueoftheremainingscheduledpayments,wewilldiscountsuchpaymentstotheredemptiondateonasemi-annualbasis(assuminga360-dayyearconsistingoftwelve30-daymonths)usingadiscountrateequaltotheTreasuryrateplusten(10)basispointsforthe2024notesandadiscountrateequaltotheTreasuryrateplusfifteen(15)basispointsforthe2029notes.ApartialredemptionofnotesmaybeeffectedbysuchmethodasthetrusteeshalldeemfairandappropriateinaccordancewithDTCproceduresandmayprovidefortheselectionforredemptionofportions(equaltotheminimumauthorizeddenominationforsuchnotesoranyintegralmultipleof$1,000inexcessthereof)oftheprincipalamountofsuchnotesofadenominationlargerthantheminimumauthorizeddenominationforsuchnotes.
Thetrusteeshallhavenoresponsibilityforthecalculationoftheredemptionprice.
Noticeofanyredemptionwillbemailedatleast15daysbutnotmorethan30daysbeforetheredemptiondatetoeachholderofnotestoberedeemed.
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Unlesswedefaultinpaymentoftheredemptionprice,onandaftertheredemptiondateinterestwillceasetoaccrueonthenotesorportionsthereofcalledforredemption.
FurtherIssues
Wemayfromtimetotime,withoutnoticetoortheconsentoftheholdersofthenotes,createandissuefurthernotesrankingequallywithandhavingthesametermsandconditionsasanyseriesofthenotesinallrespects(otherthantheissuedate,thepricetothepublic,thepaymentofinterestaccruingpriortotheissuedateofsuchfurthernotesand,insomecases,thefirstpaymentofinterestfollowingtheissuedateofsuchfurthernotes).Suchfurthernotesmaybeconsolidatedandformasingleserieswiththepreviouslyissuednotesofthatseriesandhavethesametermsastostatus,redemptionorotherwiseasthenotesofthatseries.
AnyfurthernotesthatarenotfungibleforU.S.federalincometaxpurposeswiththeoriginallyissuednoteswillbeissuedunderaseparateCUSIPnumber.
GoverningLaw
NewYorklawgovernstheseniorindentureandwillgovernthenotes,withoutregardtoitsconflictsoflawprinciplesthatwouldresultintheapplicationofanylawotherthanNewYorklaw.
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U.S.FEDERALINCOMETAXCONSIDERATIONSTONON-U.S.HOLDERS
ThefollowingisageneraldiscussionofU.S.federalincometaxconsiderationsofthepurchase,ownershipanddispositionofthenotesbyaninitialholderofthenotesthatisanon-U.S.holder(asdefinedbelow)thatacquiresthenotespursuanttothisofferingattheinitialsalepriceandholdsthenotesascapitalassetsforU.S.federalincometaxpurposes.ThisdiscussionisbasedupontheInternalRevenueCodeof1986,asamended(the"Code"),theTreasuryregulationspromulgatedthereunder(the"TreasuryRegulations"),judicialdecisionsandcurrentadministrativerulingsandpractice,allasineffectandavailableatthedatehereofandallofwhicharesubjecttochange,possiblywithretroactiveeffect.ThisdiscussiondoesnotaddressallaspectsofU.S.federalincometaxationthatmaybeapplicabletoholdersinlightoftheirparticularcircumstances,ortoholderssubjecttospecialtreatmentunderU.S.federalincometaxlaw,suchasbrokers,financialinstitutions,insurancecompanies,regulatedinvestmentcompanies,realestateinvestmenttrusts,controlledforeigncorporations,passiveforeigninvestmentcompanies,cooperatives,tradersinsecuritiesorcurrencieswhoelecttoapplyamark-to-marketmethodofaccounting,tax-exemptentitiesorqualifiedretirementplans,entitiesthataretreatedaspartnershipsforU.S.federalincometaxpurposes,dealersinsecuritiesorcurrencies,apersonthathasafunctionalcurrencyotherthantheU.S.dollar,apersonsubjecttoalternativeminimumtax,certainU.S.expatriates,apersonwhoacquiresthenotesinconnectionwithemploymentorotherperformanceofservices,personsdeemedtosellthenotesundertheconstructivesaleprovisionsoftheCodeandpersonsthatholdthenotesaspartofastraddle,hedge,conversiontransactionorotherintegratedtransaction.ThisdiscussiondoesnotapplytoholdersofTenderNotesthatparticipateintheOffer.Furthermore,thisdiscussiondoesnotaddressthealternativeminimumtax,theMedicarecontributiontax,oranyotherU.S.federaltaxconsiderations(e.g.,estateorgifttax)oranystate,localorforeigntaxlaws.Thisdiscussionisnotintendedtoconstituteacompleteanalysisofalltaxconsiderationsofthepurchase,ownershipanddispositionofthenotes.NorulingfromtheInternalRevenueService("IRS")hasbeenorwillbesoughtregardinganymatterdiscussedherein.NoassurancecanbegiventhattheIRSwouldnotassert,orthatacourtwouldnotsustain,apositioncontrarytoanyofthosesetforthbelow.HoldersareurgedtoconsulttheirtaxadvisorsregardingtheU.S.federal,state,localandforeignincomeandothertaxconsequencestothemintheirparticularcircumstances.
Forpurposesofthisdiscussion,theterm"non-U.S.holder"meansabeneficialownerofanotethat,forU.S.federalincometaxpurposes,isnot(i)acitizenorindividualresidentoftheUnitedStates;(ii)acorporationorotherentitytreatedasacorporationthatiscreatedororganizedunderthelawsoftheUnitedStates,anystateortheDistrictofColumbia;(iii)anestatetheincomeofwhichissubjecttoU.S.federalincometaxationregardlessofitssource;(iv)atrustif(A)acourtwithintheUnitedStatesisabletoexerciseprimarycontroloveritsadministrationandoneormore"UnitedStatespersons,"withinthemeaningofSection7701(a)(30)oftheCode(a"U.S.person"),havetheauthoritytocontrolallsubstantialdecisionsofsuchtrust;or(B)thetrusthasmadeanelectionundertheapplicableTreasuryRegulationstobetreatedasaU.S.person;or(v)apartnershiporotherentitytreatedasapartnership.
Ifapartnership(includinganyentityorarrangementtreatedasapartnershipforU.S.federalincometaxpurposes)beneficiallyownsthenotes,thetaxtreatmentofapartnerinthepartnershipwilldependuponthestatusofthepartnerandtheactivitiesofthepartnership.PartnersinapartnershipthatbeneficiallyownsthenotesshouldconsulttheirtaxadvisorsastotheparticularU.S.federalincometaxconsiderationsapplicabletothem.
EACHPROSPECTIVEINVESTORSHOULDCONSULTITSTAXADVISORSASTOTHEU.S.FEDERAL,STATE,LOCAL,FOREIGNANDANYOTHERTAXCONSIDERATIONSTOITOFTHEPURCHASE,OWNERSHIPANDDISPOSITIONOFTHENOTESINLIGHTOFITSPARTICULARCIRCUMSTANCES.
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Interest
Anon-U.S.holdergenerallywillnotbesubjecttoU.S.federalincomeorwithholdingtax,subjecttothediscussionsofbackupwithholdingandtheForeignAccountTaxComplianceActbelow,onpaymentsofinterestonthenotes,providedthat(i)suchinterestisnoteffectivelyconnectedwiththeconductofatradeorbusinesswithintheUnitedStatesbythenon-U.S.holder(or,ifcertaintaxtreatiesapply,suchinterestisnotattributabletoapermanentestablishmentofthenon-U.S.holderwithintheUnitedStates)and(ii)thenon-U.S.holder(A)doesnotactuallyorconstructivelyown10%ormoreofthetotalcombinedvotingpowerofallclassesofourvotingstock,(B)isnotacontrolledforeigncorporationrelatedtousdirectly,indirectlyorconstructivelythroughstockownership,(C)isnotabankreceivingcertaintypesofinterestand(D)satisfiescertaincertificationrequirements.Suchcertificationrequirementswillbemetif(x)thenon-U.S.holderprovidesitsnameandaddress,andcertifiesonanInternalRevenueService("IRS")FormW-8BEN,inthecaseofindividuals(orappropriatesubstituteform),orFormW-8BEN-E,inthecaseofentities(orappropriatesubstituteform),underpenaltiesofperjury,thatitisnotaU.S.personor(y)asecuritiesclearingorganizationorcertainotherfinancialinstitutionsholdingthenoteonbehalfofthenon-U.S.holdercertifiesonIRSFormW-8IMY(orappropriatesubstituteform),underpenaltiesofperjury,thatthecertificationreferredtoinclause(x)hasbeenreceivedbyitandfurnishesusorourpayingagentwithacopythereof.Inaddition,weorourpayingagentmustnothaveactualknowledgeorreasontoknowthatthebeneficialownerofthenotesisaU.S.person.
IfinterestonthenotesisnoteffectivelyconnectedwiththeconductofatradeorbusinessintheUnitedStatesbyanon-U.S.holder(or,ifcertaintaxtreatiesapply,suchinterestisnotattributabletoapermanentestablishmentofthenon-U.S.holderwithintheUnitedStates)butsuchnon-U.S.holdercannotsatisfytheotherrequirementsoutlinedintheprecedingparagraph,interestonthenotesgenerallywillbesubjecttoU.S.federalwithholdingtax(currentlyimposedata30%rateoralowerapplicabletaxtreatyrate).
IfinterestonthenotesiseffectivelyconnectedwiththeconductofatradeorbusinesswithintheUnitedStatesbyanon-U.S.holder(or,ifcertaintaxtreatiesapply,suchnon-U.S.holdercarriesonbusinessthroughapermanentestablishmentintheUnitedStatesandsuchinterestisattributabletosuchpermanentestablishmentofthenon-U.S.holderwithintheUnitedStates),thenthenon-U.S.holdergenerallywillbesubjecttoU.S.federalincometaxonsuchinterestonanetincomebasisand,inthecaseofanon-U.S.holderthatisaforeigncorporation,mayalsobesubjecttothebranchprofitstax(currentlyimposedatarateof30%,oralowerapplicabletaxtreatyrate).AnysuchinterestwillnotalsobesubjecttoU.S.federalwithholdingtax,however,ifthenon-U.S.holderdeliverstousaproperlyexecutedIRSFormW-8ECI(orappropriatesubstituteform)inordertoclaimanexemptionfromU.S.federalwithholdingtax.
DispositionoftheNotes
Anon-U.S.holdergenerallywillnotbesubjecttoU.S.federalincometax(oranywithholdingthereof)withrespecttogain,ifany,recognizedonthesale,exchange,retirementatmaturity,redemptionorothertaxabledispositionofanote(collectively,a"Disposition")unless(i)thegainiseffectivelyconnectedwiththeconductofatradeorbusinesswithintheUnitedStatesbythenon-U.S.holder(or,ifcertaintaxtreatiesapply,suchnon-U.S.holdercarriesonbusinessthroughapermanentestablishmentintheUnitedStatesandsuchgainisattributabletosuchpermanentestablishmentofthenon-U.S.holderwithintheUnitedStates),or(ii)inthecaseofanon-U.S.holderthatisanonresidentalienindividual,suchholderispresentintheUnitedStatesfor183ormoredaysinthetaxableyearandcertainotherconditionsaresatisfied.Iftheexceptionunder(i)applies,thenon-U.S.holdergenerallywillbesubjecttoU.S.federalincometaxonanetincomebasisunlessanapplicabletaxtreatyprovidesotherwise,andifsuchholderisacorporation,itmaybesubjecttothebranchprofitstax(currentlyimposedatarateof30%oralowerapplicabletaxtreatyrate).Accruedandunpaid
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interestrealizedonaDispositionwillbesubjecttoU.S.federalincometaxtotheextentinterestwouldhavebeensubjecttoU.S.federalincometaxasdescribedunder"—Interest."Iftheexceptionunder(ii)applies,thenon-U.S.holdergenerallywillbesubjecttotaxequalto30%onthegainrealizedexceptasprovidedunderanapplicabletaxtreaty.
ForeignAccountTaxComplianceAct
Sections1471through1474oftheCodeandtheTreasuryRegulationsandadministrativeguidancepromulgatedthereunder(commonlyreferredasthe"ForeignAccountTaxComplianceAct"or"FATCA")generallyimposewithholdingatarateof30%incertaincircumstancesoninterestpayableonthenotesheldbyorthroughcertainfinancialinstitutions(includinginvestmentfunds),unlesssuchinstitution(y)entersinto,andcomplieswith,anagreementwiththeIRStoreport,onanannualbasis,informationwithrespecttointerestsin,andaccountsmaintainedby,theinstitutionthatareownedbycertainU.S.personsorbycertainnon-U.S.entitiesthatarewhollyorpartiallyownedbyU.S.personsandtowithholdoncertainpayments,or(z)ifrequiredunderanintergovernmentalagreementbetweentheUnitedStatesandanapplicableforeigncountry,reportssuchinformationtoitslocaltaxauthority,whichwillexchangesuchinformationwiththeU.S.authorities.AnintergovernmentalagreementbetweentheUnitedStatesandapplicableforeigncountrymaymodifytheserequirements.Accordingly,theentitythroughwhichthenotesareheldwillaffectthedeterminationofwhethersuchwithholdingisrequired.Similarly,interestpayableonthenotesheldbyaninvestorthatisanon-financialnon-U.S.entitythatdoesnotqualifyundercertainexemptionsgenerallywillbesubjecttowithholdingatarateof30%,unlesssuchentityeither(y)certifiesthatsuchentitydoesnothaveany"substantialUnitedStatesowners"or(z)providescertaininformationregardingtheentity's"substantialUnitedStatesowners,"whichwewillinturnprovidetotheUnitedStatesDepartmentoftheTreasury.Prospectiveinvestorsshouldconsulttheirtaxadvisorsregardingthepossibleimplicationsoftheserulesonaninvestmentinthenotes.
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UNDERWRITING
Subjecttothetermsandconditionsoftheunderwritingagreement,theunderwritersnamedbelow,throughtheirrepresentatives,CitigroupGlobalMarketsInc.,CreditSuisseSecurities(USA)LLCandJ.P.MorganSecuritiesLLC,haveseverallyagreedtopurchasefromusthefollowingrespectiveprincipalamountsofnoteslistedoppositetheirnamebelowatthepublicofferingpricelesstheunderwritingdiscountssetforthonthecoverpageofthisprospectussupplement:
Theunderwritingagreementprovidesthattheobligationsoftheseveralunderwriterstopurchasethenotesofferedherebyaresubjecttocertainconditionsprecedentandthattheunderwriterswillpurchaseallofthenotesofferedbythisprospectussupplementifanyofthesenotesarepurchased.Theofferingofnotesbytheunderwritersissubjecttoreceiptandacceptanceandsubjecttotheunderwriters'righttorejectanyorderinwholeorinpart.
Wehavebeenadvisedbytherepresentativesoftheunderwritersthattheunderwritersproposetoofferthenotestothepublicatthepublicofferingpricessetforthonthecoverofthisprospectusandmayofferthenotestodealersatapricethatrepresentsaconcessionnotinexcessof0.200%oftheprincipalamountofthe2024notesand0.250%oftheprincipalamountofthe2029notes.Theunderwritersmayallow,andthesedealersmayre-allow,aconcessionofnotmorethan0.100%oftheprincipalamountofthe2024notesand0.150%oftheprincipalamountofthe2029notestootherdealers.Aftertheinitialpublicoffering,representativesoftheunderwritersmaychangetheofferingpricesandothersellingterms.
Weestimatethatthetotalexpensesofthisofferingtous,excludingtheunderwritingdiscounts,willbeapproximately$2.9million.
Wehaveagreedtoindemnifytheseveralunderwritersagainstsomespecifiedtypesofliabilities,includingliabilitiesundertheSecuritiesActof1933,andtocontributetopaymentstheunderwritersmayberequiredtomakeinrespectofanyoftheseliabilities.
Eachofthe2024notesandthe2029notesareanewissueofsecuritieswithnoestablishedtradingmarket.Wedonotintendtoapplyforlistingofanyseriesofnotesonanysecuritiesexchangeorforinclusionofanyseriesofnotesonanyautomateddealerquotationsystem.Theunderwritersareundernoobligationtomakeamarketinanyseriesofnotesandmaydiscontinueanymarket-makingactivitiesatanytimewithoutanynotice.Wecannotassuretheliquidityofthetradingmarketforanyseriesofnotesorthatanactivepublicmarketforanyseriesofnoteswilldevelop.Ifanactivepublictradingmarketforaseriesofnotesdoesnotdevelop,themarketpriceandliquidityofthatseriesofnotesmaybeadverselyaffected.Ifthenotesofanyseriesaretraded,theymaytradeatadiscount
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Underwriters PrincipalAmountof2024Notes
PrincipalAmountof2029Notes
CitigroupGlobalMarketsInc. $ 283,334,000 $ 283,334,000CreditSuisseSecurities(USA)LLC 283,333,000 283,333,000J.P.MorganSecuritiesLLC 283,333,000 283,333,000BNPParibasSecuritiesCorp. 40,000,000 40,000,000WellsFargoSecurities,LLC 40,000,000 40,000,000AcademySecurities,Inc. 14,000,000 14,000,000ANZSecurities,Inc. 14,000,000 14,000,000CastleOakSecurities,L.P. 14,000,000 14,000,000R.Seelaus&Co.,LLC 14,000,000 14,000,000SamuelA.Ramirez&Company,Inc. 14,000,000 14,000,000Total $ 1,000,000,000 $ 1,000,000,000
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fromtheirinitialofferingprice,dependingonprevailinginterestrates,themarketforsimilarsecurities,ouroperatingperformanceandfinancialcondition,generaleconomicconditionsandotherfactors.
Inconnectionwiththeoffering,theunderwritersmaypurchaseandsellthenotesintheopenmarket.Thesetransactionsmayincludeshortsales,purchasestocoverpositionscreatedbyshortsalesandstabilizingtransactions.
Shortsalesinvolvethesalebytheunderwritersofagreaterprincipalamountofnotesthantheyarerequiredtopurchaseintheoffering.Theunderwritersmaycloseoutanyshortpositionbypurchasingnotesintheopenmarket.Ashortpositionismorelikelytobecreatediftheunderwritersareconcernedthattheremaybedownwardpressureonthepriceofthenotesintheopenmarketpriortothecompletionoftheoffering.
Stabilizingtransactionsconsistofvariousbidsfororpurchasesofthenotesmadebytheunderwritersintheopenmarketpriortothecompletionoftheoffering.
Theunderwritersalsomayimposeapenaltybid.Thisoccurswhenaparticularunderwriterrepaystotheotherunderwritersaportionoftheunderwritingdiscountreceivedbyitbecausetherepresentativesoftheunderwritershaverepurchasednotessoldbyorfortheaccountofthatunderwriterinstabilizingorshortcoveringtransactions.
Purchasestocoverashortpositionandstabilizingtransactionsmayhavetheeffectofpreventingorslowingadeclineinthemarketpricesofthenotes.Additionally,thesepurchases,alongwiththeimpositionofthepenaltybid,maystabilize,maintainorotherwiseaffectthemarketpricesofthenotes.Asaresult,thepricesofthenotesmaybehigherthanthepricesthatmightotherwiseexistintheopenmarket.Thesetransactionsmaybeeffectedintheover-the-countermarketorotherwise.
Theunderwritersandtheirrespectiveaffiliatesarefullservicefinancialinstitutionsengagedinvariousactivities,whichmayincludesecuritiestrading,commercialandinvestmentbanking,financialadvisory,investmentmanagement,investmentresearch,principalinvestment,hedging,financing,corporatetrustandbrokerageactivities.Theunderwritersandtheirrespectiveaffiliateshaveperformedcommercialbanking,investmentbanking,advisoryandothercommercialservicesforusfromtimetotimeforwhichtheyhavereceivedcustomaryfeesandexpenses.Theunderwritersandtheirrespectiveaffiliatesmayfromtimetotimeengageintransactionswithandperformservicesforusintheordinarycourseoftheirbusiness.Inaddition,intheordinarycourseoftheirbusinessactivities,theunderwritersandtheirrespectiveaffiliatesmaymakeorholdabroadarrayofinvestmentsandactivelytradedebtandequitysecurities(orrelatedderivativesecurities)andfinancialinstruments(includingbankloans)fortheirownaccountandfortheaccountsoftheircustomers.Suchinvestmentsandsecuritiesactivitiesmayinvolvesecuritiesand/orinstrumentsofoursorouraffiliates.Ifanyoftheunderwritersortheiraffiliateshasalendingrelationshipwithus,certainoftheseunderwritersortheiraffiliatesroutinelyhedge,andcertainotheroftheunderwritersortheiraffiliatesmayhedge,theircreditexposuretousconsistentwiththeircustomaryriskmanagementpolicies.Typically,theseunderwritersandtheiraffiliateswouldhedgesuchexposurebyenteringintotransactionswhichconsistofeitherthepurchaseofcreditdefaultswapsorthecreationofshortpositionsinoursecurities,includingpotentiallythenotesofferedhereby.Anysuchcreditdefaultswapsorshortpositionscouldadverselyaffectthefuturetradingpricesofthenotesofferedhereby.Theunderwritersandtheirrespectiveaffiliatesmayalsomakeinvestmentrecommendationsand/orpublishorexpressindependentresearchviewsinrespectofsuchsecuritiesorfinancialinstrumentsandmayhold,orrecommendtoclientsthattheyacquire,longand/orshortpositionsinsuchsecuritiesandinstruments.
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SellingRestrictions
Note to Canadian Residents
Thenotesmaybesoldonlytopurchaserspurchasing,ordeemedtobepurchasing,asprincipal,thatareaccreditedinvestors,asdefinedinNationalInstrument45-106ProspectusExemptionsorsubsection73.3(1)oftheSecuritiesAct(Ontario),andarepermittedclients,asdefinedinNationalInstrument31-103RegistrationRequirements,ExemptionsandOngoingRegistrantObligations.Anyresaleofthenotesmustbemadeinaccordancewithanexemptionfrom,orinatransactionnotsubjectto,theprospectusrequirementsofapplicablesecuritieslaws.
SecuritieslegislationincertainprovincesorterritoriesofCanadamayprovideapurchaserwithremediesforrescissionordamagesifthisprospectussupplement(includinganyamendmentthereto)containsamisrepresentation,providedthattheremediesforrescissionordamagesareexercisedbythepurchaserwithinthetimelimitprescribedbythesecuritieslegislationofthepurchaser'sprovinceorterritory.Thepurchasershouldrefertoanyapplicableprovisionsofthesecuritieslegislationofthepurchaser'sprovinceorterritoryforparticularsoftheserightsorconsultwithalegaladvisor.
Pursuanttosection3A.3(or,inthecaseofsecuritiesissuedorguaranteedbythegovernmentofanonCanadianjurisdiction,section3A.4)ofNationalInstrument33-105UnderwritingConflicts("NI33-105"),theunderwritersarenotrequiredtocomplywiththedisclosurerequirementsofNI33-105regardingunderwriterconflictsofinterestinconnectionwiththisoffering.
Note to Prospective Investors in the United Kingdom
IntheUnitedKingdom,thisprospectussupplementisbeingdistributedonlyto,andisdirectedonlyat,andanyoffersubsequentlymademayonlybedirectedatpersons(i)whohaveprofessionalexperienceinmattersrelatingtoinvestmentsfallingwithinArticle19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005,asamended(the"Order")and/or(ii)whoarehighnetworthcompanies(orpersonstowhomitmayotherwisebelawfullycommunicated)fallingwithinArticle49(2)(a)to(e)oftheOrder(allsuchpersonstogetherbeingreferredtoas"relevantpersons").ThisprospectussupplementmustnotbeactedonorreliedonintheUnitedKingdombypersonswhoarenotrelevantpersons.IntheUnitedKingdom,anyinvestmentorinvestmentactivitytowhichthisdocumentrelatesisonlyavailableto,andwillbeengagedinwith,relevantpersons.
Eachunderwriterhasrepresented,warrantedandagreedthat:
• ithasonlycommunicatedandcausedtobecommunicatedandwillonlycommunicateorcausetobecommunicatedanyinvitationorinducementtoengageininvestmentactivitywithinthemeaningofSection21oftheFinancialServicesandMarketsAct2000,asamended(the"FSMA")receivedbyitinconnectionwiththeissueorsaleofanynotesincludedinthisofferingincircumstancesinwhichSection21(1)oftheFSMAdoesnotapplytous;and
• ithascompliedandwillcomplywithallapplicableprovisionsoftheFSMAwithrespecttoanythingdonebyitinrelationtothenotesincludedinthisofferingin,fromorotherwiseinvolvingtheUnitedKingdom.
Note to Prospective Investors in the European Economic Area
Thenotesarenotintendedtobeoffered,soldorotherwisemadeavailabletoandshouldnotbeoffered,soldorotherwisemadeavailabletoanyretailinvestorintheEuropeanEconomicArea("EEA").Forthesepurposes,aretailinvestormeansapersonwhoisone(ormore)of:(i)aretailclientasdefinedinpoint(11)ofArticle4(1)ofDirective2014/65/EU(asamended,"MiFIDII");or(ii)acustomerwithinthemeaningofDirective2002/92/EC(asamended,the"InsuranceMediationDirective")wherethatcustomerwouldnotqualifyasaprofessionalclientasdefinedinpoint(10)of
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Article4(1)ofMiFIDII;or(iii)notaqualifiedinvestorasdefinedintheRegulation(EU)No.2017/1129,knownasthe"ProspectusRegulation".Consequently,nokeyinformationdocumentrequiredbyRegulation(EU)No1286/2014(asamended,the"PRIIPsRegulation")forofferingorsellingthenotesorotherwisemakingthemavailabletoretailinvestorsintheEEAhasbeenpreparedandthereforeofferingorsellingthenotesorotherwisemakingthemavailabletoanyretailinvestorintheEEAmaybeunlawfulunderthePRIIPsRegulation.
Notice to Prospective Investors in Switzerland
ThenotesmaynotbepubliclyofferedinSwitzerlandandwillnotbelistedontheSIXSwissExchange("SIX")oronanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.Thisprospectussupplementhasbeenpreparedwithoutregardtothedisclosurestandardsforissuanceprospectusesunderart.652aorart.1156oftheSwissCodeofObligationsorthedisclosurestandardsforlistingprospectusesunderart.27ff.oftheSIXListingRulesorthelistingrulesofanyotherstockexchangeorregulatedtradingfacilityinSwitzerland.NeitherthisprospectussupplementnoranyotherofferingormarketingmaterialrelatingtothenotesortheofferingmaybepubliclydistributedorotherwisemadepubliclyavailableinSwitzerland.
Neitherthisprospectussupplementnoranyotherofferingormarketingmaterialrelatingtotheoffering,theCompany,orthenoteshavebeenorwillbefiledwithorapprovedbyanySwissregulatoryauthority.Inparticular,thisprospectussupplementwillnotbefiledwith,andtheofferofnoteswillnotbesupervisedby,theSwissFinancialMarketSupervisoryAuthorityFINMA("FINMA"),andtheofferofthenoteshasnotbeenandwillnotbeauthorizedundertheSwissFederalActonCollectiveInvestmentSchemes("CISA").TheinvestorprotectionaffordedtoacquirersofinterestsincollectiveinvestmentschemesundertheCISAdoesnotextendtoacquirersofthenotes.
Notice to Prospective Investors in Hong Kong
Thenotesmaynotbeofferedorsoldbymeansofanydocumentotherthan(i)to"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunder,or(ii)inothercircumstanceswhichdonotresultinthedocumentbeinga"prospectus"withinthemeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong)orwhichdonotconstituteanoffertothepublicwithinthemeaningofthatOrdinance,andnoadvertisement,invitationordocumentrelatingtothenotesmaybeissuedormaybeinthepossessionofanypersonforthepurposeofissue(ineachcasewhetherinHongKongorelsewhere),whichisdirectedat,orthecontentsofwhicharelikelytobeaccessedorreadby,thepublicinHongKong(exceptifpermittedtodosounderthelawsofHongKong)otherthanwithrespecttonoteswhichareorareintendedtobedisposedofonlytopersonsoutsideHongKongoronlyto"professionalinvestors"withinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,LawsofHongKong)andanyrulesmadethereunder.
Notice to Prospective Investors in Japan
ThenoteshavenotbeenandwillnotberegisteredundertheFinancialInstrumentsandExchangeLawofJapan(the"FinancialInstrumentsandExchangeLaw")andeachunderwriterhasagreedthatitwillnotofferorsellanynotes,directlyorindirectly,inJapanorto,orforthebenefitof,anyresidentofJapan(whichtermasusedhereinmeansanypersonresidentinJapan,includinganycorporationorotherentityorganizedunderthelawsofJapan),ortoothersforre-offeringorresale,directlyorindirectly,inJapanortoaresidentofJapan,exceptpursuanttoanexemptionfromtheregistrationrequirementsof,andotherwiseincompliancewith,theFinancialInstrumentsandExchangeLawandanyotherapplicablelaws,regulationsandministerialguidelinesofJapan.
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Notice to Prospective Investors in Singapore
ThisprospectussupplementandtheaccompanyingprospectushavenotbeenregisteredasaprospectuswiththeMonetaryAuthorityofSingapore.Accordingly,thisprospectussupplementandtheaccompanyingprospectusandanyotherdocumentormaterialinconnectionwiththeofferorsale,orinvitationforsubscriptionorpurchase,ofthenotesmaynotbecirculatedordistributed,normaythenotesbeofferedorsold,orbemadethesubjectofaninvitationforsubscriptionorpurchase,whetherdirectlyorindirectly,topersonsinSingaporeotherthan(i)toaninstitutionalinvestor(asdefinedunderSection4AoftheSecuritiesandFuturesAct,Chapter289ofSingapore(the"SFA"))underSection274oftheSFA,(ii)toarelevantperson(asdefinedinSection275(2)oftheSFA)pursuanttoSection275(1)oftheSFA,oranypersonpursuanttoSection275(1A)oftheSFA,andinaccordancewiththeconditionsspecifiedinSection275oftheSFAor(iii)otherwisepursuantto,andinaccordancewiththeconditionsof,anyotherapplicableprovisionoftheSFA,ineachcasesubjecttoconditionssetforthintheSFA.
WherethenotesaresubscribedorpurchasedunderSection275oftheSFAbyarelevantpersonwhichisacorporation(whichisnotanaccreditedinvestor(asdefinedinSection4AoftheSFA))thesolebusinessofwhichistoholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisanaccreditedinvestor,thesecurities(asdefinedinSection239(1)oftheSFA)ofthatcorporationshallnotbetransferablefor6monthsafterthatcorporationhasacquiredthenotesunderSection275oftheSFAexcept:(1)toaninstitutionalinvestorunderSection274oftheSFAortoarelevantperson(asdefinedinSection275(2)oftheSFA),(2)wheresuchtransferarisesfromanofferinthatcorporation'ssecuritiespursuanttoSection275(1A)oftheSFA,(3)wherenoconsiderationisorwillbegivenforthetransfer,(4)wherethetransferisbyoperationoflaw,(5)asspecifiedinSection276(7)oftheSFA,or(6)asspecifiedinRegulation32oftheSecuritiesandFutures(OffersofInvestments)(SharesandDebentures)Regulations2005ofSingapore("Regulation32").
WherethenotesaresubscribedorpurchasedunderSection275oftheSFAbyarelevantpersonwhichisatrust(wherethetrusteeisnotanaccreditedinvestor(asdefinedinSection4AoftheSFA))whosesolepurposeistoholdinvestmentsandeachbeneficiaryofthetrustisanaccreditedinvestor,thebeneficiaries'rightsandinterest(howsoeverdescribed)inthattrustshallnotbetransferablefor6monthsafterthattrusthasacquiredthenotesunderSection275oftheSFAexcept:(1)toaninstitutionalinvestorunderSection274oftheSFAortoarelevantperson(asdefinedinSection275(2)oftheSFA),(2)wheresuchtransferarisesfromanofferthatismadeontermsthatsuchrightsorinterestareacquiredataconsiderationofnotlessthanS$200,000(oritsequivalentinaforeigncurrency)foreachtransaction(whethersuchamountistobepaidforincashorbyexchangeofsecuritiesorotherassets),(3)wherenoconsiderationisorwillbegivenforthetransfer,(4)wherethetransferisbyoperationoflaw,(5)asspecifiedinSection276(7)oftheSFA,or(6)asspecifiedinRegulation32.
SingaporeSecuritiesandFuturesActProductClassification:
Solelyforthepurposesofitsobligationspursuanttosections309B(1)(a)and309B(1)(c)oftheSFA),theIssuerhasdetermined,andherebynotifiesallrelevantpersons(asdefinedinSection309AoftheSFA)thatthenotesare"prescribedcapitalmarketsproducts"(asdefinedintheSecuritiesandFutures(CapitalMarketsProducts)Regulations2018)andExcludedInvestmentProducts(asdefinedinMASNoticeSFA04-N12:NoticeontheSaleofInvestmentProductsandMASNoticeFAA-N16:NoticeonRecommendationsonInvestmentProducts).
Notice to Prospective Investors in Taiwan
Thenoteshavenotbeenandwillnotberegisteredorfiledwith,orapprovedby,theFinancialSupervisoryCommissionofTaiwanand/orotherregulatoryauthorityofTaiwanpursuanttorelevant
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securitieslawsandregulationsandmaynotbesold,issuedorofferedwithinTaiwanthroughapublicofferingorincircumstanceswhichcouldconstituteanofferwithinthemeaningoftheSecuritiesandExchangeActofTaiwanorrelevantlawsandregulationsthatrequirearegistration,filingorapprovaloftheFinancialSupervisoryCommissionofTaiwanand/orotherregulatoryauthorityofTaiwan.NopersonorentityinTaiwanhasbeenauthorizedtoofferorsellthenotesinTaiwan.
LEGALOPINIONS
ThevalidityofthenotesofferedherebywillbepasseduponforusbySkadden,Arps,Slate,Meagher&FlomLLP,NewYork,NewYork,andfortheunderwritersbyAlston&BirdLLP,Atlanta,Georgia.Alston&BirdLLPfromtimetotimeservesasourcounsel.
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PROSPECTUS
DEBTSECURITIESCOMMONSTOCK
PREFERREDSTOCKWARRANTS
DEPOSITARYSHARESPURCHASECONTRACTS
GUARANTEES
Wemayoffer,issueandsellfromtimetotime,togetherorseparately:
• debtsecurities;
• sharesofourcommonstock;
• sharesofourpreferredstock;
• warrantstopurchasedebtorequitysecurities;
• depositaryshares;
• purchasecontracts;and
• guaranteesofdebtsecuritiesissuedbyoursubsidiaries.
Inaddition,sellingstockholderstobenamedinaprospectussupplementmayoffer,fromtimetotime,sharesofourcommonstock.Wemayofferandsellthesesecuritiestoorthroughoneormoreunderwriters,dealersandagents,ordirectlytopurchasers,onacontinuousordelayedbasis.
Thisprospectusdescribessomeofthegeneraltermsthatmayapplytothesesecurities.Thespecifictermsofanysecuritiestobeofferedwillbedescribedinasupplementtothisprospectus.Theprospectussupplementmayalsoadd,updateorchangeinformationcontainedinthisprospectus.Youshouldreadthisprospectusandtheapplicableprospectussupplementcarefullybeforeyoumakeyourinvestmentdecision.OurcommonstockislistedontheNewYorkStockExchangeunderthetradingsymbol"KO."Eachprospectussupplementwillindicateifthesecuritiesofferedtherebywillbelistedonanysecuritiesexchange.
Thisprospectusmaynotbeusedtosellsecuritiesunlessaccompaniedbyaprospectussupplement.
YoushouldcarefullyreadandconsidertheriskfactorsincorporatedbyreferenceintothisprospectusfromourAnnualReportonForm10-KfortheyearendedDecember31,2016,andanysubsequentperiodicreportsandotherinformationthatwefilewiththeSecuritiesandExchangeCommissionbeforeyouinvestinoursecurities.
NeithertheSecuritiesandExchangeCommissionnoranystatesecuritiescommissionhasapprovedordisapprovedofthesesecuritiesorpassedupontheaccuracyoradequacyofthisprospectus.Anyrepresentationtothecontraryisacriminaloffense.
ThedateofthisprospectusisMay22,2017.
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TABLEOFCONTENTS
Weincludecrossreferencestocaptionselsewhereinthisprospectuswhereyoucanfindrelatedadditionalinformation.Thefollowingtableofcontentstellsyouwheretofindthesecaptions.
Inthisprospectus,exceptasotherwiseindicatedorthecontextotherwiserequires,theterms"Company,""we,""us"and"our"meanTheCoca-ColaCompanyandallentitiesincludedinourconsolidatedfinancialstatements.
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Page ABOUTTHISPROSPECTUS 1
WHEREYOUCANFINDMOREINFORMATION 1
CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 2
OURCOMPANY 4
USEOFPROCEEDS 5
RATIOOFEARNINGSTOFIXEDCHARGES 5
DESCRIPTIONOFDEBTSECURITIES 6
DESCRIPTIONOFCAPITALSTOCK 20
DESCRIPTIONOFWARRANTS 24
DESCRIPTIONOFDEPOSITARYSHARES 25
DESCRIPTIONOFPURCHASECONTRACTS 28
DESCRIPTIONOFGUARANTEES 29
PLANOFDISTRIBUTION 30
LEGALMATTERS 32
EXPERTS 32
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ABOUTTHISPROSPECTUS
ThisprospectusispartofaregistrationstatementonFormS-3thatwefiledwiththeSecuritiesandExchangeCommission,orthe"SEC,"usinga"shelf"registrationprocess.Underthisshelfprocess,wemay,fromtimetotime,sell:
• debtsecurities,whichmaybeseniororsubordinatedandmaybeconvertible;
• sharesofourcommonstock;
• sharesofourpreferredstock;
• warrantstopurchasedebtorequitysecurities;
• depositaryshares;
• purchasecontracts;and
• guaranteesofdebtsecuritiesissuedbyoursubsidiaries,
eitherseparatelyorinunits,inoneormoreofferings.Thisprospectusprovidesyouwithageneraldescriptionofthosesecurities.Inaddition,sellingstockholderstobenamedinaprospectussupplementmayoffer,fromtimetotime,sharesofourcommonstock.Eachtimeweorsellingstockholderssellsecurities,wewillprovideaprospectussupplementthatwillcontainspecificinformationaboutthetermsofthatoffering,includingthespecificamounts,pricesandtermsofthesecuritiesoffered.Theprospectussupplementmayalsoadd,updateorchangeinformationcontainedinthisprospectus.Ifthereisanyinconsistencybetweentheinformationinthisprospectusandanyprospectussupplement,youshouldrelyontheinformationintheprospectussupplement.Youshouldreadthisprospectusandtheapplicableprospectussupplementtogetherwiththeadditionalinformationdescribedhereinundertheheading"WhereYouCanFindMoreInformation."
WHEREYOUCANFINDMOREINFORMATION
YoumayobtainfromtheSEC,throughtheSEC'swebsiteorattheSECofficesmentionedinthefollowingparagraph,acopyoftheregistrationstatementonFormS-3,includingexhibits,thatwehavefiledwiththeSECtoregisterthesecuritiesofferedunderthisprospectus.Thisprospectusispartoftheregistrationstatementanddoesnotcontainalltheinformationintheregistrationstatement.Youwillfindadditionalinformationaboutusintheregistrationstatement.Anystatementmadeinthisprospectusconcerningacontractorotherdocumentofoursisnotnecessarilycomplete,andyoushouldreadthedocumentsthatarefiledasexhibitstotheregistrationstatementorotherwisefiledwiththeSECforamorecompleteunderstandingofthedocumentormatter.Eachsuchstatementisqualifiedinallrespectsbyreferencetothedocumenttowhichitrefers.
Wefileannual,quarterlyandcurrentreports,proxystatementsandotherinformationwiththeSEC.OurSECfilingsareavailabletothepublicovertheInternetattheSEC'swebsiteathttp://www.sec.govandonourcorporatewebsiteathttp://www.coca-colacompany.com.Informationonourwebsitedoesnotconstitutepartofthisprospectus.YoumayinspectwithoutchargeanydocumentsfiledbyusattheSEC'sPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549.YoumayobtaincopiesofalloranypartofthesematerialsfromtheSECuponthepaymentofcertainfeesprescribedbytheSEC.PleasecalltheSECat1-800-SEC-0330forfurtherinformationonthePublicReferenceRoom.OurSECfilingsarealsoavailableattheofficeoftheNewYorkStockExchangelocatedat20BroadStreet,NewYork,NewYork10005.
We"incorporatebyreference"intothisprospectusdocumentswefilewiththeSEC,whichmeansthatwecandiscloseimportantinformationtoyoubyreferringyoutothosedocuments.Theinformationincorporatedbyreferenceisanimportantpartofthisprospectus.Someinformationcontainedinthisprospectusupdatestheinformationincorporatedbyreference,andinformationthatwefilesubsequentlywiththeSECwillautomaticallyupdatethisprospectus.Inotherwords,inthecaseofaconflictorinconsistencybetweeninformationsetforthinthisprospectusandinformationthatwe
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filelaterandincorporatebyreferenceintothisprospectus,youshouldrelyontheinformationcontainedinthedocumentthatwasfiledlater.
WeincorporatebyreferenceintothisprospectusthedocumentslistedbelowandanyfilingswemakewiththeSECunderSections13(a),13(c),14or15(d)oftheSecuritiesExchangeActof1934,asamended,orthe"ExchangeAct,"afterthedateofthisprospectusandpriortothetimethatallthesecuritiesofferedbythisprospectushavebeenissuedasdescribedinthisprospectus(otherthan,ineachcase,documentsorinformationdeemedtohavebeenfurnishedandnot"filed"inaccordancewithSECrules):
• ourAnnualReportonForm10-KfortheyearendedDecember31,2016(filedonFebruary24,2017);
• ourQuarterlyReportonForm10-QforthequarterendedMarch31,2017(filedonApril27,2017);
• ourCurrentReportsonForm8-KfiledonFebruary15,2017,March3,2017,March9,2017,March24,2017andApril28,2017(exceptforanyportionsfurnishedpursuanttoItem2.02orItem7.01thereofandanycorrespondingexhibitsthereto);
• theportionsofourDefinitiveProxyStatementforour2017AnnualMeetingofShareholders,filedonMarch9,2017pursuanttoRegulation14A,thatarespecificallyincorporatedbyreferenceintoourAnnualReportonForm10-KfortheyearendedDecember31,2016;and
• thedescriptionsofthecommonstocksetforthinourregistrationstatementsfiledpursuanttoSection12oftheExchangeAct,andanyamendmentorreportfiledforthepurposeofupdatingthosedescriptions.
Youmayrequestacopyoftheregistrationstatement,theabovefilingsandanyfuturefilingsthatareincorporatedbyreferenceintothisprospectus,otherthananexhibittoafilingunlessthatexhibitisspecificallyincorporatedbyreferenceintothatfiling,atnocost,bywritingorcallingusatthefollowingaddress:OfficeoftheSecretary,TheCoca-ColaCompany,OneCoca-ColaPlaza,Atlanta,Georgia30313;telephone:(404)676-2121.
Youshouldrelyonlyontheinformationcontainedorincorporatedbyreferenceinthisprospectus,anyaccompanyingprospectussupplementoranyfreewritingprospectusfiledbyuswiththeSECandanyinformationaboutthetermsofsecuritiesofferedconveyedtoyoubyus,ourunderwritersoragents.Wehavenotauthorizedanyoneelsetoprovideyouwithadditionalordifferentinformation.Thesesecuritiesareonlybeingofferedinjurisdictionswheretheofferispermitted.Youshouldnotassumethattheinformationcontainedinthisprospectus,anyaccompanyingprospectussupplementoranyfreewritingprospectusisaccurateasofanydateotherthantheirrespectivedates.
CAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS
Thisprospectus,anyaccompanyingprospectussupplementandthedocumentsincorporatedbyreferencehereinmaycontainstatements,estimatesorprojectionsthatconstitute"forward-lookingstatements"asdefinedunderU.S.federalsecuritieslaws.Generally,thewords"believe,""expect,""intend,""estimate,""anticipate,""project,""will"andsimilarexpressionsidentifyforward-lookingstatements,whichgenerallyarenothistoricalinnature.Forward-lookingstatementsaresubjecttocertainrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromourhistoricalexperienceandourpresentexpectationsorprojections.Theserisksinclude,butarenotlimitedto,obesityandotherhealth-relatedconcerns;waterscarcityandpoorquality;evolvingconsumerpreferences;increasedcompetitionandcapabilitiesinthemarketplace;productsafetyandqualityconcerns;perceivednegativehealthconsequencesofcertainingredients,suchasnon-nutritivesweetenersandbiotechnology-derivedsubstances,andofothersubstancespresentinourbeverage
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productsorpackagingmaterials;aninabilitytobesuccessfulinourinnovationactivities;increaseddemandforfoodproductsanddecreasedagriculturalproductivity;changesintheretaillandscapeorthelossofkeyretailorfoodservicecustomers;aninabilitytoexpandoperationsinemerginganddevelopingmarkets;fluctuationsinforeigncurrencyexchangerates;interestrateincreases;aninabilitytomaintaingoodrelationshipswithourbottlingpartners;adeteriorationinourbottlingpartners'financialcondition;increasesinincometaxrates,changesinincometaxlawsorunfavorableresolutionoftaxmatters;increasedornewindirecttaxesintheUnitedStatesandthroughouttheworld;increasedcost,disruptionofsupplyorshortageofenergyorfuels;increasedcost,disruptionofsupplyorshortageofingredients,otherrawmaterialsorpackagingmaterials;changesinlawsandregulationsrelatingtobeveragecontainersandpackaging;significantadditionallabelingorwarningrequirementsorlimitationsonthemarketingorsaleofourproducts;aninabilitytoprotectourinformationsystemsagainstserviceinterruption,misappropriationofdataorbreachesofsecurity;unfavorablegeneraleconomicconditionsintheUnitedStates;unfavorableeconomicandpoliticalconditionsininternationalmarkets;litigationorlegalproceedings;failuretoadequatelyprotect,ordisputesrelatingto,trademarks,formulaeandotherintellectualpropertyrights;adverseweatherconditions;climatechange;damagetoourbrandimageandcorporatereputationfromnegativepublicity,evenifunwarranted,relatedtoproductsafetyorquality,humanandworkplacerights,obesityorotherissues;changesin,orfailuretocomplywith,thelawsandregulationsapplicabletoourproductsorourbusinessoperations;changesinaccountingstandards;aninabilitytoachieveouroveralllong-termgrowthobjectives;deteriorationofglobalcreditmarketconditions;defaultbyorfailureofoneormoreofourcounterpartyfinancialinstitutions;aninabilitytorenewcollectivebargainingagreementsonsatisfactoryterms,orweorourbottlingpartnersexperiencestrikes,workstoppagesorlaborunrest;futureimpairmentcharges;multi-employerpensionplanwithdrawalliabilitiesinthefuture;aninabilitytosuccessfullyintegrateandmanageourCompany-ownedor-controlledbottlingoperations;aninabilitytosuccessfullymanageourrefranchisingactivities;failuretorealizetheeconomicbenefitsfromoraninabilitytosuccessfullymanagethepossiblenegativeconsequencesofourproductivityinitiatives;failuretorealizeasignificantportionoftheanticipatedbenefitsofourstrategicrelationshipwithMonster;inabilitytoattractorretainahighlyskilledworkforce;globalorregionalcatastrophicevents,includingterroristacts,cyber-strikesandradiologicalattacks;andotherrisksdiscussedinourfilingswiththeSEC,includingourAnnualReportonForm10-KfortheyearendedDecember31,2016andoursubsequentlyfiledQuarterlyReportsonForm10-Q,whichfilingsareavailablefromtheSEC.Youshouldnotplaceunduerelianceonforward-lookingstatements,whichspeakonlyasofthedatetheyaremade.Weundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatements.
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OURCOMPANY
TheCoca-ColaCompanyistheworld'slargestbeveragecompany.Weownorlicenseandmarketmorethan500nonalcoholicbeveragebrandsincludingsparklingbeveragesandavarietyofstillbeveragessuchaswaters,flavoredwatersandenhancedwaters,juicesandjuicedrinks,ready-to-drinkteasandcoffees,sportsdrinks,dairyandenergydrinks.Weownandmarketfouroftheworld'stopfivenonalcoholicsparklingbeveragebrands:Coca-Cola,DietCoke,FantaandSprite.Finishedbeverageproductsbearingourtrademarks,soldintheUnitedStatessince1886,arenowsoldinmorethan200countries.
WemakeourbrandedbeverageproductsavailabletoconsumersthroughouttheworldthroughournetworkofCompany-ownedor-controlledbottlinganddistributionoperationsaswellasindependentbottlingpartners,distributors,wholesalersandretailers—theworld'slargestbeveragedistributionsystem.Beveragesbearingtrademarksownedbyorlicensedtousaccountformorethan1.9billionoftheapproximately59billionservingsofallbeveragesconsumedworldwideeveryday.
Webelieveoursuccessdependsonourabilitytoconnectwithconsumersbyprovidingthemwithawidevarietyofoptionstomeettheirdesires,needsandlifestyles.Oursuccessfurtherdependsontheabilityofourpeopletoexecuteeffectively,everyday.
OurgoalistouseourCompany'sassets—ourbrands,financialstrength,unrivaleddistributionsystem,globalreach,andthetalentandstrongcommitmentofourmanagementandassociates—tobecomemorecompetitiveandtoaccelerategrowthinamannerthatcreatesvalueforourshareowners.
WewereincorporatedinSeptember1919underthelawsoftheStateofDelawareandsucceededtothebusinessofaGeorgiacorporationwiththesamenamethathadbeenorganizedin1892.
OurprincipalofficeislocatedatOneCoca-ColaPlaza,Atlanta,Georgia30313,andourtelephonenumberatthataddressis(404)676-2121.Wemaintainawebsiteatwww.coca-colacompany.comwheregeneralinformationaboutusisavailable.Wearenotincorporatingthecontentsofthewebsiteintothisprospectus.
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USEOFPROCEEDS
Exceptasmaybeotherwisesetforthintheapplicableprospectussupplementaccompanyingthisprospectus,thenetproceedsfromthesaleofthesecuritiesbyuswillbeusedforgeneralcorporatepurposes,including:
• workingcapital;
• capitalexpenditures;
• acquisitionsoforinvestmentsinbusinessesorassets;
• redemptionandrepaymentofshort-termorlong-termborrowings;and
• purchasesofourcommonstock.
Pendingapplicationofthenetproceeds,wemaytemporarilyinvestthenetproceedsinshort-termmarketablesecurities.
Wewillnotreceiveanyproceedsfromthesaleofsecuritiesbysellingstockholders.
RATIOOFEARNINGSTOFIXEDCHARGES
OurratiosofearningstofixedchargesforthefivefiscalyearsendedDecember31,2016andforthethreemonthsendedMarch31,2017aresetforthbelow:
Wecomputedratiosofearningstofixedchargesonatotalenterprisebasisbydividingincomefromcontinuingoperationsbeforeincometaxesandchangesinaccountingprinciples(excludingundistributedequityearnings)andfixedcharges(excludingcapitalizedinterest)byfixedcharges.Fixedchargesconsistofgrossinterestincurredandtheinterestportionofrentalexpense.
AsofMarch31,2017,wewerecontingentlyliableforguaranteesofindebtednessowedbythirdparties,includingcertainvariableinterestentities,intheamountof$578million.Fixedchargesforthesecontingentliabilitieshavenotbeenincludedinthecomputationoftheaboveratios,astheamountsareimmaterialand,intheopinionofmanagement,itisnotprobablethatwewillberequiredtosatisfytheguarantees.Theinterestamountintheabovetabledoesnotincludeinterestexpenseassociatedwithunrecognizedtaxbenefits.
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YearEndedDecember31,
ThreeMonths
EndedMarch31,
2017
2016 2015 2014 2013 2012 7.7x 10.6x 11.2x 16.7x 21.4x 24.4x
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DESCRIPTIONOFDEBTSECURITIES
Thissectiondescribesthegeneraltermsandprovisionsofthedebtsecurities.Theapplicableprospectussupplementwilldescribethespecifictermsofthedebtsecuritiesofferedbythatprospectussupplementandanygeneraltermsoutlinedinthissectionthatwillnotapplytothosedebtsecurities.
Anydebtsecuritieswillbeeitherourseniorunsecuredobligationsissuedinoneormoreseries,whichwerefertoasthe"seniordebtsecurities,"oroursubordinatedunsecuredobligationsissuedinoneormoreseries,whichwerefertoasthe"subordinateddebtsecurities."WewillissuetheseniordebtsecuritiesunderanamendedandrestatedindenturebetweenusandDeutscheBankTrustCompanyAmericas,assuccessortoBankersTrustCompany,astrustee,datedasofApril26,1988,asamended,whichwerefertoasthe"seniorindenture."WewillissuethesubordinateddebtsecuritiesunderanindenturetobeenteredintobetweenusandDeutscheBankTrustCompanyAmericas,astrustee,whichwerefertoasthe"subordinatedindenture."Werefertotheseniorindentureandthesubordinatedindenture,collectively,asthe"indentures."Asusedinthisprospectus,"debtsecurities"meansthedebentures,notes,bondsandotherevidencesofindebtednessthatweissueandthetrusteeauthenticatesanddeliversundertheindentures.TheindenturesandalldebtsecuritiesissuedundertheindentureswillbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork.Additionally,theindenturesaresubjecttotheprovisionsoftheTrustIndentureActof1939,asamended.
Wehavesummarizedselectedtermsandprovisionsoftheindenturesinthissection.Wehavealsoincorporatedbyreferencetheindenturesasexhibitstotheregistrationstatementofwhichthisprospectusformsapart.Youshouldreadtheindenturesforadditionalinformationbeforeyoubuyanydebtsecurities.See"WhereYouCanFindMoreInformation"forinformationonhowtoobtaincopiesoftheindentures.Thesummarythatfollowsincludesreferencestosectionnumbersoftheindentures(assupplementedbythefirstsupplementalindenturetotheseniorindenture,datedasofFebruary24,1992,andthesecondsupplementalindenturetotheseniorindenture,datedasofNovember1,2007,insomeinstances)sothatyoucanmoreeasilylocatetheseprovisions.Unlessotherwiseindicated,sectionreferencesarethesamefortheseniorindentureandthesubordinatedindenture.Capitalizedtermsusedbutnotdefinedinthissummaryhavethemeaningsspecifiedintheindentures.
General
Theseniordebtsecuritieswillrankequallyandratablywithourotherunsecuredandunsubordinatedobligations.Thesubordinateddebtsecuritieswillbesubordinatedinrightofpaymenttothepriorpaymentinfullofourseniordebt,includinganyseniordebtsecurities,asdescribedbelowunder"SubordinatedIndentureProvisions—Subordination."Thedebtsecuritieswillrankjuniortoallofourcurrentlyexistingandfuturesecureddebt.
Wearenotlimitedastotheamountofdebtsecuritiesthatwecanissueundertheindentures.Wemayissuedebtsecuritiesundertheindenturesinoneormoreseries,eachwithdifferentterms,uptotheaggregateprincipalamountwhichwemayauthorizefromtimetotime.Wealsohavetherightto"reopen"apreviousissueofaseriesofdebtsecuritiesbyissuingadditionaldebtsecuritiesofsuchseries.(Section3.01).
Aprospectussupplementrelatingtoaseriesofdebtsecuritiesbeingofferedwillincludespecifictermsrelatingtothatoffering.Inadditiontostatingwhetherthesecuritieswillbeseniororsubordinated,thesetermswillincludesomeorallofthefollowing:
• thetitleandtypeofthedebtsecurities;
• thetotalprincipalamountofdebtsecuritiesofthatseriesthatareauthorizedandoutstandingasofthemostrecentdate;
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• anylimitonthetotalprincipalamountofthedebtsecurities;
• thepriceatwhichthedebtsecuritieswillbeissued;
• thedateordatesonwhichtheprincipalofandpremium,ifany,onthedebtsecuritieswillbepayable;
• thematuritydateofthedebtsecurities;
• theminimumdenominationsinwhichthedebtsecuritieswillbeissued;
• ifthedebtsecuritieswillbearinterest;
• theinterestrateonthedebtsecuritiesorthemethodofcalculatingtheinterestrate;
• thedatefromwhichinterestwillaccrue;
• therecordandinterestpaymentdatesforthedebtsecurities;
• thefirstinterestpaymentdate;
• theplaceorplacesatwhichtheprincipalorpremium,ifany,andinterest,ifany,onthedebtsecuritieswillbepaid;
• anyoptionalredemptionprovisionsthatwouldpermitusortheholdersofthedebtsecuritiestoelectredemptionofthedebtsecuritiespriortotheirfinalmaturity;
• anysinkingfundormandatoryredemptionorretirementprovisionsthatwouldobligateustoredeemthedebtsecuritiespriortotheirfinalmaturity;
• thecurrencyorcurrenciesinwhichthedebtsecuritieswillbedenominatedandpayable,ifotherthanU.S.dollars;
• anyprovisionsthatwouldpermitusortheholdersofthedebtsecuritiestoelectthecurrencyorcurrenciesinwhichthedebtsecuritiesarepaid;
• theportionoftheprincipalamountofthedebtsecuritiesthatwillbepayableupondeclarationoraccelerationofmaturityofthedebtsecurities(ifotherthantheprincipalamountofthedebtsecurities);
• whethertheprovisionsdescribedundertheheading"DefeasanceoftheIndenturesandSecurities"belowapplytothedebtsecurities;
• whethertheprovisionsofsomeorallofthecovenantsdescribedundertheheading"RestrictiveCovenants"belowapplytothedebtsecurities;
• anychangestooradditionalEventsofDefault(asdefinedundertheheading"EventofDefault"below)orcovenants;
• whetherthedebtsecuritieswillbeissuedinwholeorinpartintheformofglobalsecuritiesand,ifso,thedepositaryforthoseglobalsecurities;
• anyspecialtaximplicationsofthedebtsecurities;
• forthesubordinateddebtsecurities,whetherthespecificsubordinationprovisionsapplicabletothesubordinateddebtsecuritiesareotherthanassetforthinthesubordinatedindenture;
• whetherthedebtsecuritiesareconvertibleorexchangeableintoourcommonstockorotherequitysecuritiesandthetermsandconditionsuponwhichsuchconversionorexchangeshallbeeffected;and
• anyothertermsofthedebtsecurities.
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Ifthepurchasepriceofanydebtsecuritiesisdenominatedinaforeigncurrencyorcompositecurrency,oriftheprincipaloforanypremiumorinterestonanydebtsecuritiesispayableinaforeigncurrencyorcompositecurrency,wewillincludetherestrictions,elections,taxconsequences,specifictermsandotherinformationwithrespecttothedebtsecuritiesandtheapplicableforeigncurrencyorcompositecurrencyintheapplicableprospectussupplement.
WemayissuedebtsecuritiesasOriginalIssueDiscountSecurities(asdefinedbelow)tobeofferedandsoldatasubstantialdiscountfromtheirprincipalamountandtypicallybearingnointerestorinterestataratewhichatthetimeofissuanceisbelowmarketrates.An"OriginalIssueDiscountSecurity"isanydebtsecuritywhichprovidesforanamountlessthanitsprincipalamounttobedueandpayableuponadeclarationofaccelerationofitsmaturity.(Section1.01).Wewilldescribethefederalincometax,accountingandotherconsiderationsrelevanttoanysuchOriginalIssueDiscountSecuritiesintheapplicableprospectussupplement.
Theparticulartermsofaseriesofdebtsecuritieswillbesetforthinanofficers'certificateorsupplementalindenture,anddescribedintheapplicableprospectussupplement.Weurgeyoutoreadtheapplicableindentureassupplementedbyanyofficers'certificateorsupplementalindenturethatisapplicabletoyoubecausethatindenture,assupplemented,andnotthissection,definesyourrightsasaholderofthedebtsecurities.
RestrictiveCovenants
Theindenturescontaincertainrestrictivecovenantsthatapply,ormayapply,tousandallofourRestrictedSubsidiaries(asdefinedbelow).Thecovenantsdescribedbelowunder"RestrictionsonLiens"and"RestrictionsonSaleandLeasebackTransactions"willnotapplytoaseriesofdebtsecuritiesunlesswespecificallysoprovideintheapplicableprospectussupplement.ThesecovenantsdonotapplytoanyofourSubsidiariesthatarenotdesignatedasRestrictedSubsidiaries.
Youshouldcarefullyreadtheapplicableprospectussupplementfortheparticularprovisionsoftheseriesofdebtsecuritiesbeingoffered,includinganyadditionalrestrictivecovenantsorEventsofDefaultthatmaybeincludedinthetermsofsuchdebtsecurities.
Restrictions on Liens.IftheapplicableprospectussupplementstatesthatthecovenantsetforthinSection5.03oftheindentureswillbeapplicabletoaseriesofdebtsecurities,thenwewillbesubjecttoacovenantprovidingthatwewillnot,norwillwepermitanyRestrictedSubsidiary(asdefinedbelow)to,create,incur,issue,assumeorguaranteeanydebtformoneyborrowed(asusedinthis"RestrictiveCovenants"section,"Debt")ifsuchDebtissecuredbyamortgage,pledge,lien,securityinterestorotherencumbranceuponanyPrincipalProperty(asdefinedbelow)oronanysharesofstockorindebtednessofanyRestrictedSubsidiary(whethersuchPrincipalProperty,sharesofstockorindebtednessarenowownedoracquiredinthefuture),without,inanysuchcase,effectivelyprovidingthatthedebtsecuritiesand,atouroption,anyofourotherindebtednessorguaranteesoranyindebtednessorguaranteesofaRestrictedSubsidiaryrankingequallywiththedebtsecurities,willbesecuredequallyandratablywith(or,atouroption,priorto)suchDebt.Theforegoingrestrictionsdonotapplyto:
(1) mortgagesonproperty,sharesofstockorindebtednessofanycorporationexistingatthetimesuchcorporationbecomesaRestrictedSubsidiary;
(2) mortgagesonpropertyexistingatthetimeofacquisitionofsuchpropertyand,insomeinstances,certainpurchasemoneymortgages;
(3) mortgagessecuringDebtowingbyanyRestrictedSubsidiarytousoranotherRestrictedSubsidiary;
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(4) mortgagesonpropertyofacorporationexistingatthetimesuchcorporationismergedintoorconsolidatedwithusoraRestrictedSubsidiaryoratthetimeofasale,leaseorotherdispositionofthepropertiesofacorporationorfirmasanentiretyorsubstantiallyasanentiretytousoraRestrictedSubsidiary;
(5) mortgagesinfavorofanycountryoranypoliticalsubdivisionofanycountry,oranyinstrumentalitythereof,tosecurepaymentspursuanttoanycontractorstatuteortosecureanyindebtednessincurredforthepurposeoffinancingalloranypartofthepurchasepriceorthecostofconstructionofthepropertysubjecttosuchmortgages;or
(6) anyextension,renewalorreplacement(orsuccessiveextensions,renewalsorreplacements),inwholeorinpart,ofanymortgagereferencedinclauses(1)through(5)above,inclusive,oranymortgageexistingattherespectivedateoftheapplicableindenture,providedthattheprincipalamountofDebtsecuredatthetimeofsuchextensionmaynotbeincreased,andthecollateralwhichsecuresthesamecannotbeexpanded.
Notwithstandingtheseexceptions,weandoneormoreRestrictedSubsidiariesmay,withoutsecuringthedebtsecurities,create,incur,issue,assumeorguaranteesecuredDebtwhichwouldotherwisebesubjecttotheforegoingrestrictions,providedthatif,aftergivingeffecttosuchDebt,theaggregateofsuchsecuredDebtthenoutstanding(notincludingsecuredDebtpermittedundertheforegoingexceptions)atsuchtimedoesnotexceed10%ofourconsolidatedshareowners'equityasoftheendoftheprecedingfiscalyear.(Section5.03).
Restrictions on Sale and Leaseback Transactions.IftheapplicableprospectussupplementstatesthatthecovenantsetforthinSection5.04oftheindentureswillbeapplicabletoaseriesofdebtsecurities,thenwewillbesubjecttothecovenantprovidingthatwewillnot,andwewillnotpermitanyRestrictedSubsidiaryto,enterintoanylease,otherthanintercompanyleases,longerthanthreeyearscoveringanyPrincipalPropertythatissoldtoanyotherpersoninconnectionwithsuchleaseunless:
(1) weorsuchRestrictedSubsidiarywouldbeentitled,pursuantto"RestrictionsonLiens"describedabove,toincurDebtsecuredbyamortgageonthePrincipalPropertyinvolvedinanamountatleastequaltotheAttributableDebt(asdefinedbelow)withoutequallyandratablysecuringthedebtsecuritiesprovidedthatsuchAttributableDebtshallthenbedeemedtobeDebtsubjecttotheprovisionsofsuchrestrictiononliens;
(2) sincetherespectivedateoftheapplicableindentureandwithinaperiodcommencingtwelvemonthspriortotheconsummationofthesaleandleasebacktransactionandendingtwelvemonthsaftertheconsummationofsuchtransaction,weorsuchRestrictedSubsidiaryhasexpended,orwillexpend,forthePrincipalPropertyanamountequalto(a)thenetproceedsofsuchsaleandleasebacktransaction,andweelecttodesignateallofsuchamountasacreditagainstsuchtransactionor(b)apartofthenetproceedsofsuchsaleandleasebacktransaction,andweelecttodesignatesuchamountasacreditagainstsuchtransactionandapplyanamountequaltotheremainderofthenetproceedsasprovidedinclause(3)below;or
(3) anamountequaltosuchAttributableDebt(lessanyamountelectedunderclause(2)above)isappliedwithin90daysofsuchleasetotheretirementofDebt,otherthanintercompanyDebt,whichbyitstermsmaturesat,orisprepayableorextendibleorrenewableatthesoleoptionoftheobligorwithoutrequiringtheconsentoftheobligeeto,adatemorethantwelvemonthsafterthedateofthecreationofsuchDebt.(Section5.04).
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Consolidation,MergerandSale
Theindenturesgenerallyprovidethatwemayconsolidatewithormergeintoanyothercorporation,ortransferorleaseourpropertiesandassetsasanentiretyorsubstantiallyasanentiretytoanyothercorporation,ifthecorporationformedbyorresultingfromanysuchconsolidation,intowhichwearemergedorwhichshallhaveacquiredorleasedsuchpropertiesandassets,shall,pursuanttoasupplementalindenture,assumepaymentoftheprincipalof(andpremium,ifany)andinterest,ifany,onthedebtsecuritiesandtheperformanceandobservanceofthecovenantsoftheindentures.(Section11.01).
Ifupon(1)anyconsolidationormergerofus,orofusandanySubsidiary,withorintoanyothercorporationorcorporations,oruponthemergerofanothercorporationintous,or(2)successiveconsolidationsormergerstowhichweoroursuccessorsshallbeapartyorparties,or(3)uponanysaleorconveyanceofourproperty,orthepropertyofusandanySubsidiary,asanentiretyorsubstantiallyasanentirety,anyPrincipalPropertyoranysharesofstockorDebtofanyRestrictedSubsidiarywouldthenbecomesubjecttoanymortgage,wewillcausethedebtsecurities,andatouroptionanyotherindebtednessoforguaranteesbyusorsuchRestrictedSubsidiaryrankingequallywiththedebtsecurities,tobesecuredequallyandratablywith(or,atouroption,priorto)anyDebtsecuredthereby,unlesssuchDebtcouldhavebeenincurredwithoutusbeingrequiredtosecurethedebtsecuritiesequallyorratablywith(orpriorto)suchDebtpursuantto"RestrictionsonLiens"describedabove.(Section11.01).
CertainDefinitions
Asusedintheindenturesandthisprospectus,thefollowingdefinitionsapply:
"AttributableDebt"means,inrespectofasaleandleasebacktransaction,asofanyparticulartime,thepresentvalue(discountedattherateofinterestimplicitinthetermsoftheleaseinvolvedinsuchsaleandleasebacktransaction,asdeterminedingoodfaithbyus)oftheobligationofthelesseethereunderforrentalpayments(excluding,however,anyamountsrequiredtobepaidbysuchlessee,whetherornotdesignatedasrentoradditionalrent,onaccountofmaintenanceandrepairs,insurance,taxes,assessments,waterratesorsimilarchargesoranyamountsrequiredtobepaidbysuchlesseethereundercontingentupontheamountofsales,maintenanceandrepairs,insurance,taxes,assessments,waterratesorsimilarcharges)duringtheremainingtermofsuchlease(includinganyperiodforwhichsuchleasehasbeenextendedormay,attheoptionofthelessor,beextended).(Section1.01).
"PrincipalProperty"meansourmanufacturingplantsorfacilitiesorthoseofaRestrictedSubsidiarylocatedwithintheUnitedStatesofAmerica(otherthanitsterritoriesandpossessions)orPuertoRico,exceptanysuchmanufacturingplantorfacilitywhichourboardofdirectorsbyresolutionreasonablydeterminesnottobeofmaterialimportancetothetotalbusinessconductedbyusandourRestrictedSubsidiaries.(Section1.01).
"RestrictedSubsidiary"meansanySubsidiary(1)substantiallyallofthepropertyofwhichislocated,orsubstantiallyallofthebusinessofwhichiscarriedon,withintheUnitedStatesofAmerica(otherthanitsterritoriesandpossessions)orPuertoRicoand(2)whichownsoristhelesseeofanyPrincipalProperty,butdoesnotincludeanySubsidiaryprimarilyengagedinfinancingactivities,primarilyengagedintheleasingofrealpropertytopersonsotherthanusandourSubsidiaries,orwhichischaracterizedbyusasatemporaryinvestment.Theterms"RestrictedSubsidiary"doesnotincludeCoca-ColaFinancialCorporation,TheCoca-ColaTradingCompanyLLC,55th&5thAvenueCorporation,BottlingInvestmentsCorporationorACCBCHoldingCompany,andtheirrespectiveSubsidiaries.(Section1.01).
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"Subsidiary"meansacorporationmorethan50%oftheoutstandingVotingStockofwhichisowned,directlyorindirectly,byusoroneormoreotherSubsidiaries,orbyusandoneormoreotherSubsidiaries.(Section1.01).
"VotingStock"meansstockoftheclassorclasseshavinggeneralvotingpowerunderordinarycircumstancestoelectatleastamajorityoftheboardofdirectors,managersortrusteesofsaidcorporation(irrespectiveofwhetherornotatthetimestockofanyotherclassorclassesshallhaveormighthavevotingpowerbyreasonofthehappeningofanycontingency).(Section1.01).
EventofDefault
"EventofDefault,"whenusedintheindentureswithrespecttoanyseriesofdebtsecurities,meansanyofthefollowingevents:
• defaultfor30daysinpaymentofanyinterestonsuchseries;
• defaultinpaymentofanyprincipaloforpremium,ifany,onsuchseries;
• defaultinpaymentofanysinkingfundinstallmentforsuchseries;
• defaultfor90daysafterwrittennoticeinperformanceofanyothercovenantintheindentures(otherthanacovenantoragreementincludedintheindenturessolelyforthebenefitofholdersofdebtsecuritiesofanyseriesotherthanthatseries);
• certaineventsofbankruptcy,insolvencyorreorganization;or
• anyotherEventofDefaultprovidedwithrespecttothatseries.(Section7.01).
Theindenturesrequireustodeliverannuallytothetrusteeanofficers'certificate,inwhichcertainofourofficerscertifywhetherornottheyhaveknowledgeofanydefaultinourperformanceofthecovenantsdescribed.(Section5.07).
IfanEventofDefaultshalloccurandbecontinuingwithrespecttothedebtsecuritiesofanyseries,thetrusteeortheholdersofnotlessthan25%inaggregateprincipalamountofthedebtsecuritiesofsuchseriesthenoutstandingmaydeclaretheprincipal(or,ifthedebtsecuritiesofsuchseriesareOriginalIssueDiscountSecurities,suchportionoftheprincipalamountasmaybespecifiedintheapplicableprospectussupplementforsuchseries)ofallthedebtsecuritiesofsuchseriesandtheinterestaccruedthereontobedueandpayable.(Section7.02).Theholdersofnotlessthanamajorityinaggregateprincipalamountoftheoutstandingdebtsecuritiesofsuchseries(or,inthecaseofcertainEventsofDefaultpertainingtoalloutstandingdebtsecurities,withtheconsentofholdersofamajorityinaggregateprincipalamountofallthedebtsecuritiesthenoutstandingactingasoneclass)maywaiveanyEventofDefaultwithrespecttoaparticularseriesofdebtsecurities,exceptanEventofDefaultinthepaymentofprincipaloforanypremiumorinterestonanydebtsecuritiesofsuchseriesorinrespectofacovenantorprovisionoftheindentureswhich,underthetermsthereof,cannotbemodifiedoramendedwithouttheconsentoftheholdersofeachoutstandingdebtsecurityofsuchseries.(Section7.11).See"ModificationsoftheIndentures"below.
SubjecttotheprovisionsoftheindenturesrelatingtothedutiesofthetrusteeincaseanEventofDefaultshalloccurandbecontinuing,thetrusteeisundernoobligationtoexerciseanyoftherightsorpowersundertheindenturesattherequest,orderordirectionofanyoftheholdersofdebtsecuritiesofanyseries,unlesssuchsecurityholdersshallhaveofferedtothetrusteereasonablesecurityorindemnityagainstthecosts,expensesandliabilitieswhichmightbeincurredbysuchexercise.(Section8.02).Subjecttosuchprovisionsfortheindemnificationofthetrusteeandcertainlimitationscontainedintheindentures,theholdersofamajorityinaggregateprincipalamountofalldebtsecuritiesofsuchseriesatthetimeoutstandingshallhavetherighttodirectthetime,methodand
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placeofconductinganyproceedingforanyremedyavailabletothetrusteeorexercisinganytrustorpowerconferredonthetrusteewithrespecttothedebtsecuritiesofthatseries.(Section7.10).
Ifanydebtsecuritiesaredenominatedinaforeigncurrencyorcompositecurrency,thenforthepurposesofdeterminingwhethertheholdersoftherequisiteprincipalamountofdebtsecuritieshavetakenanyactionashereindescribed,theprincipalamountofsuchdebtsecuritiesshallbedeemedtobethatamountofUnitedStatesdollarsthatcouldbeobtainedforsuchprincipalamountonthebasisofthespotrateofexchangeintoUnitedStatesdollarsforthecurrencyorcompositecurrencyinwhichsuchdebtsecuritiesaredenominated(asdeterminedbyusoranauthorizedexchangerateagentandevidencedtothetrustee)asofthedatethetakingofsuchactionbytheholdersofsuchrequisiteprincipalamountisevidencedtothetrusteeasprovidedintheindentures.(Section14.10).
ModificationsoftheIndentures
Weandthetrusteemaymodifyandamendtheindentureswiththeconsentoftheholdersofnotlessthanamajorityinaggregateprincipalamountthenoutstandingofanyseriesofthedebtsecuritiesaffectedbysuchmodificationoramendment.However,wemaynot,withouttheconsentoftheholdersofeachdebtsecuritysoaffected:
• extendthefixedmaturityofsuchseriesofdebtsecurities;
• reducetheprincipalamountofsuchseriesofdebtsecurities;
• reducetherateorextendthetimeofpaymentofinterestonsuchseriesofdebtsecurities;
• impairoraffecttherightofanysecurityholdertoinstitutesuitforpaymentofprincipalorinterestorchangethecoinorcurrencyinwhichtheprincipaloforinterestonsuchseriesofdebtsecuritiesispayable;or
• reducethepercentageofaggregateprincipalamountofdebtsecuritiesofsuchseriesfromwhomconsentisrequiredtomodifytheindentures.(Section10.02).
Inaddition,underoursubordinatedindenture,withouttheconsentofeachholderofeachdebtsecuritysoaffected,wemaynotmodifytheprovisionsofthesubordinatedindenturewithrespecttosubordinationofthedebtsecuritiesinamanneradversetotheholders.
Weandthetrusteemaymodifyandamendtheindentureswithouttheconsentofanyholdersofdebtsecuritiesto:
• provideforsecurityforthedebtsecurities;
• evidencetheassumptionofourobligationsundertheapplicableindenturebyasuccessor;
• addcovenantsthatwouldbenefitholdersofanydebtsecurities;
• cureanyambiguity,omission,defectorinconsistency;
• changeoreliminateanyoftheprovisionsoftheindenturessolongassuchchangeoreliminationbecomeseffectiveonlywhentherearenosecuritiescreatedpriortotheexecutionofthesupplementalindenturethenoutstandingwhichareentitledtothebenefitofsuchprovision;
• provideforasuccessortrustee;or
• makesuchprovisionsasmaybenecessaryoradvisableinordertocomplywiththewithholdingprovisionsoftheInternalRevenueCodeof1986,asamended,andtherulesandregulationsthereunder.(Section10.01).
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DefeasanceoftheIndenturesandSecurities
Unlesstheapplicableprospectussupplementstatesotherwise,theindenturesprovidethatwewillbedeemedtohavepaidanddischargedtheentireindebtednessonthedebtsecuritiesofanyseries,andourobligationsundertheindentureswithrespecttothedebtsecuritiesofsuchseries(otherthancertainspecifiedobligations,suchastheobligationstomaintainasecurityregisterpertainingtotransferofthedebtsecurities,tomaintainapayingagencyoffice,andtoreplacestolen,lostordestroyeddebtsecurities)willceasetobeineffect,fromandafterthedatethatwedepositwiththetrustee,intrust:
• moneyinthecurrencyorcompositecurrencyinwhichthedebtsecuritiesofsuchseriesaredenominated;or
• U.S.GovernmentObligations,inthecaseofdebtsecuritiesdenominatedindollars,orobligationsissuedorguaranteedbythegovernmentwhichissuedthecurrencyinwhichthedebtsecuritiesofsuchseriesaredenominated,inthecaseofdebtsecuritiesdenominatedinforeigncurrencies,whichthroughthepaymentofinterestandprincipalinaccordancewiththeirtermswillprovidemoneyinthecurrencyinwhichthedebtsecuritiesofsuchseriesaredenominated;or
• acombinationthereof,
whichissufficienttopayanddischargetheprincipalandpremium,ifany,andinterest,ifany,tothedateofmaturityonortheredemptiondateof,suchseriesofdebtsecurities.(Sections12.01and12.02).Intheeventofanysuchdefeasance,holdersofsuchdebtsecuritieswouldbeabletolookonlytosuchtrustfundforpaymentofprincipal(andpremium,ifany)andinterest,ifany,ontheirdebtsecuritiesuntilmaturity.
Suchdefeasancemaybetreatedasataxableexchangeoftherelateddebtsecuritiesforanissueofobligationsofthetrustoradirectinterestinthemoney,U.S.GovernmentObligationsorotherobligationsheldinthetrust.Inthatcase,holdersofsuchdebtsecuritiesmayrecognizegainorlossasifthetrustobligationsorthemoney,U.S.GovernmentObligationsorotherobligationsdeposited,asthecasemaybe,hadactuallybeenreceivedbytheminexchangefortheirdebtsecurities.Suchholdersthereaftermightberequiredtoincludeinincomeadifferentamountthanwouldbeincludableintheabsenceofdefeasance.Weencourageprospectiveinvestorstoconsultwiththeirowntaxadvisorsastothespecificconsequencesofdefeasance.
Denominations
Unlesstheapplicableprospectussupplementstatesotherwise,thedebtsecuritieswillbeissuedonlyinregisteredformwithoutcoupons,inU.S.dollarsindenominationsof$1,000oranyintegralmultiplesof$1,000.Wewillissueabook-entrysecurityequaltotheaggregateprincipalamountofoutstandingdebtsecuritiesoftheseriesrepresentedbysuchbook-entrysecurity.Wewillspecifythedenominationsofaseriesofdebtsecuritiesdenominatedinaforeigncurrencyorcompositecurrencyintheapplicableprospectussupplement.(Sections3.02and3.03).
RegistrationandTransfer
Youmayexchangeanycertificatedsecuritiesofanyseriesforothercertificatedsecuritiesofthesameseriesandofalikeaggregateprincipalamountandtenorofdifferentauthorizeddenominations.Uponpaymentofanytaxesandothergovernmentalchargesasdescribedintheindentures,youmaypresentcertificatedsecuritiesforregistrationoftransfer(withtheformoftransferdulyexecuted),withoutaservicecharge,attheofficeofthesecuritiesregistrarorattheofficeofanytransferagentthatwedesignateforsuchpurposeandreferenceintheapplicableprospectussupplementwithrespecttoanyseriesofdebtsecurities.Subjecttoitssatisfactionwiththedocumentsoftitleandidentityofthe
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personmakingtherequest,thesecuritiesregistrarorsuchtransferagent,asthecasemaybe,willeffectsuchtransferorexchange.
Wehaveinitiallyappointedthetrusteeassecuritiesregistrarundertheindentures.(Section3.05).Iftheprospectussupplementreferstoanytransferagentinadditiontothesecuritiesregistrarinitiallydesignatedbyuswithrespecttoanyseriesofdebtsecurities,wemayatanytimerescindthedesignationofanysuchtransferagentorapproveachangeinthelocationthroughwhichanysuchtransferagentacts,exceptthatwewillberequiredtomaintainatransferagentintheboroughofManhattan,thecityofNewYork,forsuchseries.Wemayatanytimedesignateadditionaltransferagentswithrespecttoanyseriesofdebtsecurities.(Section5.02).
Intheeventofanypartialredemptioninpartofaseriesofdebtsecurities,wewillnotberequiredto(1)issuesecuritiesofsuchseries,registerthetransferofsecuritiesofsuchseriesorexchangedebtsecuritiesofsuchseriesduringaperiodbeginningattheopeningofbusiness15daysbeforethemailingdateofanoticeofredemptionofsuchdebtsecuritiesofthatseriesselectedtoberedeemedandendingatthecloseofbusinessonsuchmailingdateor(2)registerthetransferorexchangeofanydebtsecurity,orportionofanysuchdebtsecurity,thatiscalledforredemption,excepttheunredeemedportionofanydebtsecuritybeingredeemedinpart.(Section3.05).
PaymentandPayingAgents
Unlesstheapplicableprospectussupplementstatesotherwise,wewillpaytheprincipalofandanypremiumandinterestondebtsecuritiesattheofficeofthepayingagentorpayingagentsaswemaydesignatefromtimetotime.However,atouroptionwemaypayanyinterestbycheckmailedordeliveredtotheaddressofthepersonentitledtosuchpaymentasitappearsinthesecuritiesregister.(Section2.02).Unlesstheapplicableprospectussupplementstatesotherwise,wewillpayanyinstallmentofinterestondebtsecuritiestothepersoninwhosenamethedebtsecurityisregisteredatthecloseofbusinessontheregularrecorddateforsuchinterestpayment.(Section3.07).Paymentsofanyinterestonthedebtsecuritiesmaybesubjecttothedeductionofapplicablewithholdingtaxes.(Section5.01).
Unlesstheapplicableprospectussupplementstatesotherwise,theprincipalofficeofthetrusteeinthecityofNewYorkisdesignatedasourpayingagentforpaymentswithrespecttodebtsecurities.Anyotherpayingagentsthatwemaydesignateatthetimeoftheofferingandissuanceofaseriesofdebtsecuritieswillbenamedintherelatedprospectussupplement.Withregardtoanyseries,wemayatanytimedesignateadditionalpayingagents,rescindthedesignationofanypayingagentsorapproveachangeintheofficethroughwhichanypayingagentacts,exceptthatwewillberequiredtomaintainapayingagentintheboroughofManhattaninthecityofNewYork.(Section5.02).
Thetrusteeoranypayingagentforthepaymentofprincipaloforinterestonanydebtsecuritywillrepaytousallmoneyspaidbyuswhichremainunclaimedattheendoftwoyearsaftersuchprincipalorinterestshallhavebecomedueandpayable,and,aftersuchrepaymentoccurs,theholderoftheapplicabledebtsecuritywillbeentitledtolookonlytousforpayment.(Section12.04).
ConcerningtheTrustee
DeutscheBankTrustCompanyAmericas,assuccessortoBankersTrustCompany,NewYork,NewYork,isthetrusteeundertheseniorindentureandhasagreedtoactastrusteeunderthesubordinatedindenture.WemaintainbankingrelationshipsintheordinarycourseofbusinesswithaffiliatesofDeutscheBankTrustCompanyAmericas,andaffiliatesofDeutscheBankTrustCompanyAmericashaveenteredintoforeigncurrencytransactionswithus,serveasfiscalagentsforcertainofouroutstandingobligationsandhaveprovidedback-uplinesofcreditforourcommercialpaper.
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Book-EntryDeliveryandSettlement
Global Notes
Wewillissueanydebtsecuritiesintheformofoneormoreglobalnotesindefinitive,fullyregistered,book-entryform.TheglobalnoteswillbedepositedwithoronbehalfoftheDepositoryTrustCompany("DTC")andregisteredinthenameofCede&Co.,asnomineeofDTC.
DTC, Clearstream and Euroclear
Beneficialinterestsintheglobalnoteswillberepresentedthroughbook-entryaccountsoffinancialinstitutionsactingonbehalfofbeneficialownersasdirectandindirectparticipantsinDTC.InvestorsmayholdinterestsintheglobalnotesthrougheitherDTC(intheUnitedStates),ClearstreamBanking,societeanonyme,Luxembourg,whichwerefertoasClearstream,orEuroclearBankS.A./N.V.,asoperatoroftheEuroclearSystem,whichwerefertoasEuroclear,inEurope,eitherdirectlyiftheyareparticipantsinsuchsystemsorindirectlythroughorganizationsthatareparticipantsinsuchsystems.ClearstreamandEuroclearwillholdinterestsonbehalfoftheirparticipantsthroughcustomers'securitiesaccountsinClearstream'sandEuroclear'snamesonthebooksoftheirU.S.depositaries,whichinturnwillholdsuchinterestsincustomers'securitiesaccountsintheU.S.depositaries'namesonthebooksofDTC.
DTChasadvisedusthat:
• DTCisalimited-purposetrustcompanyorganizedundertheNewYorkBankingLaw,a"bankingorganization"withinthemeaningoftheNewYorkBankingLaw,amemberoftheFederalReserveSystem,a"clearingcorporation"withinthemeaningoftheNewYorkUniformCommercialCodeanda"clearingagency"registeredunderSection17AoftheExchangeAct.
• DTCholdssecuritiesthatitsparticipantsdepositwithDTCandfacilitatesthesettlementamongparticipantsofsecuritiestransactions,suchastransfersandpledges,indepositedsecuritiesthroughelectroniccomputerizedbook-entrychangesinparticipants'accounts,therebyeliminatingtheneedforphysicalmovementofsecuritiescertificates.
• DirectparticipantsincludebothU.S.andnon-U.S.securitiesbrokersanddealers,banks,trustcompanies,clearingcorporationsandotherorganizations,someofwhom,and/ortheirrepresentatives,ownDTC.
• DTCisawholly-ownedsubsidiaryofTheDepositoryTrust&ClearingCorporation("DTCC").DTCCistheholdingcompanyforDTC,NationalSecuritiesClearingCorporationandFixedIncomeClearingCorporation,allofwhichareregisteredclearingagencies.DTCCisownedbytheusersofitsregulatedsubsidiaries.
• AccesstotheDTCsystemisalsoavailabletootherssuchasbothU.S.andnon-U.S.securitiesbrokersanddealers,banksandtrustcompaniesthatclearthroughormaintainacustodialrelationshipwithadirectparticipant,eitherdirectlyorindirectly.
• TherulesapplicabletoDTCanditsdirectandindirectparticipantsareonfilewiththeSEC.
ClearstreamhasadvisedusthatitisincorporatedunderthelawsofLuxembourgasaprofessionaldepositary.Clearstreamholdssecuritiesforitscustomersandfacilitatestheclearanceandsettlementofsecuritiestransactionsbetweenitscustomersthroughelectronicbook-entrychangesinaccountsofitscustomers,therebyeliminatingtheneedforphysicalmovementofcertificates.Clearstreamprovidestoitscustomers,amongotherthings,servicesforsafekeeping,administration,clearanceandsettlementofinternationallytradedsecuritiesandsecuritieslendingandborrowing.Clearstreaminterfaceswithdomesticmarketsinseveralcountries.Asaprofessionaldepositary,ClearstreamissubjecttoregulationbytheLuxembourgCommissionfortheSupervisionoftheFinancialSector.Clearstreamcustomersarerecognizedfinancialinstitutionsaroundtheworld,includingunderwriters,securitiesbrokersand
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dealers,banks,trustcompanies,clearingcorporationsandotherorganizationsandmayincludetheunderwriters.IndirectaccesstoClearstreamisalsoavailabletoothers,suchasbanks,brokers,dealersandtrustcompaniesthatclearthroughormaintainacustodialrelationshipwithaClearstreamcustomereitherdirectlyorindirectly.
Euroclearhasadvisedusthatitwascreatedin1968toholdsecuritiesforparticipantsofEuroclearandtoclearandsettletransactionsbetweenEuroclearparticipantsthroughsimultaneouselectronicbook-entrydeliveryagainstpayment,therebyeliminatingtheneedforphysicalmovementofcertificatesandanyriskfromlackofsimultaneoustransfersofsecuritiesandcash.Euroclearprovidesvariousotherservices,includingsecuritieslendingandborrowingandinterfaceswithdomesticmarketsinseveralcountries.EuroclearisoperatedbyEuroclearBankS.A./N.V.,whichwerefertoastheEuroclearOperator.AlloperationsareconductedbytheEuroclearOperator,andallEuroclearsecuritiesclearanceaccountsandEuroclearcashaccountsareaccountswiththeEuroclearOperator.Euroclearparticipantsincludebanks(includingcentralbanks),securitiesbrokersanddealers,andotherprofessionalfinancialintermediariesandmayincludetheunderwriters.IndirectaccesstoEuroclearisalsoavailabletootherfirmsthatclearthroughormaintainacustodialrelationshipwithaEuroclearparticipant,eitherdirectlyorindirectly.
WeunderstandthattheEuroclearOperatorislicensedbytheBelgianBankingandFinanceCommissiontocarryoutbankingactivitiesonaglobalbasis.AsaBelgianbank,itisregulatedandexaminedbytheBelgianBankingandFinanceCommission.
WehaveprovidedthedescriptionsoftheoperationsandproceduresofDTC,ClearstreamandEuroclearinthisprospectussupplementsolelyasamatterofconvenience.Theseoperationsandproceduresaresolelywithinthecontrolofthoseorganizationsandaresubjecttochangebythemfromtimetotime.Noneofus,theunderwritersnorthetrusteetakesanyresponsibilityfortheseoperationsorprocedures,andyouareurgedtocontactDTC,ClearstreamandEuroclearortheirparticipantsdirectlytodiscussthesematters.
WeexpectthatunderproceduresestablishedbyDTC:
• upondepositoftheglobalnoteswithDTCoritscustodian,DTCwillcreditonitsinternalsystemtheaccountsofdirectparticipantsdesignatedbytheunderwriterswithportionsoftheprincipalamountsoftheglobalnotes;and
• ownershipofthedebtsecuritieswillbeshownon,andthetransferofownershipthereofwillbeeffectedonlythrough,recordsmaintainedbyDTCoritsnominee,withrespecttointerestsofdirectparticipants,andtherecordsofdirectandindirectparticipants,withrespecttointerestsofpersonsotherthanparticipants.
Thelawsofsomejurisdictionsmayrequirethatpurchasersofsecuritiestakephysicaldeliveryofthosesecuritiesindefinitiveform.Accordingly,theabilitytotransferinterestsinthedebtsecuritiesrepresentedbyaglobalnotetothosepersonsmaybelimited.Inaddition,becauseDTCcanactonlyonbehalfofitsparticipants,whointurnactonbehalfofpersonswhoholdintereststhroughparticipants,theabilityofapersonhavinganinterestindebtsecuritiesrepresentedbyaglobalnotetopledgeortransferthoseintereststopersonsorentitiesthatdonotparticipateinDTC'ssystem,orotherwisetotakeactionsinrespectofsuchinterest,maybeaffectedbythelackofaphysicaldefinitivesecurityinrespectofsuchinterest.
SolongasDTCoritsnomineeistheregisteredownerofaglobalnote,DTCorthatnomineewillbeconsideredthesoleownerorholderofthedebtsecuritiesrepresentedbythatglobalnoteforallpurposesundertheindentureandunderthedebtsecurities.Exceptasprovidedbelow,ownersofbeneficialinterestsinaglobalnotewillnotbeentitledtohavedebtsecuritiesrepresentedbythatglobalnoteregisteredintheirnames,willnotreceiveorbeentitledtoreceivephysicaldeliveryofcertificatednotesandwillnotbeconsideredtheownersorholdersthereofundertheapplicable
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indentureorunderthedebtsecuritiesforanypurpose,includingwithrespecttothegivingofanydirection,instructionorapprovaltothetrustee.Accordingly,eachholderowningabeneficialinterestinaglobalnotemustrelyontheproceduresofDTCand,ifthatholderisnotadirectorindirectparticipant,ontheproceduresoftheparticipantthroughwhichthatholderownsitsinterest,toexerciseanyrightsofaholderofdebtsecuritiesundertheapplicableindentureoraglobalnote.
NeitherwenorthetrusteewillhaveanyresponsibilityorliabilityforanyaspectoftherecordsrelatingtoorpaymentsmadeonaccountofdebtsecuritiesbyDTC,ClearstreamorEuroclear,orformaintaining,supervisingorreviewinganyrecordsofthoseorganizationsrelatingtothedebtsecurities.
PaymentsonthedebtsecuritiesrepresentedbytheglobalnoteswillbemadetoDTCoritsnominee,asthecasemaybe,astheregisteredownerthereof.WeexpectthatDTCoritsnominee,uponreceiptofanypaymentonthedebtsecuritiesrepresentedbyaglobalnote,willcreditparticipants'accountswithpaymentsinamountsproportionatetotheirrespectivebeneficialinterestsintheglobalnoteasshownintherecordsofDTCoritsnominee.Wealsoexpectthatpaymentsbyparticipantstoownersofbeneficialinterestsintheglobalnoteheldthroughsuchparticipantswillbegovernedbystandinginstructionsandcustomarypracticeasisnowthecasewithsecuritiesheldfortheaccountsofcustomersregisteredinthenamesofnomineesforsuchcustomers.Theparticipantswillberesponsibleforthosepayments.
DistributionsonthedebtsecuritiesheldbeneficiallythroughClearstreamwillbecreditedtocashaccountsofitscustomersinaccordancewithitsrulesandprocedures,totheextentreceivedbytheU.S.depositaryforClearstream.
SecuritiesclearanceaccountsandcashaccountswiththeEuroclearOperatoraregovernedbytheTermsandConditionsGoverningUseofEuroclearandtherelatedOperatingProceduresoftheEuroclearSystem,andapplicableBelgianlaw(collectively,the"TermsandConditions").TheTermsandConditionsgoverntransfersofsecuritiesandcashwithinEuroclear,withdrawalsofsecuritiesandcashfromEuroclear,andreceiptsofpaymentswithrespecttosecuritiesinEuroclear.AllsecuritiesinEuroclearareheldonafungiblebasiswithoutattributionofspecificcertificatestospecificsecuritiesclearanceaccounts.TheEuroclearOperatoractsundertheTermsandConditionsonlyonbehalfofEuroclearparticipantsandhasnorecordoforrelationshipwithpersonsholdingthroughEuroclearparticipants.
DistributionsonthedebtsecuritiesheldbeneficiallythroughEuroclearwillbecreditedtothecashaccountsofitsparticipantsinaccordancewiththeTermsandConditions,totheextentreceivedbytheU.S.depositaryforEuroclear.
Clearance and Settlement Procedures
Initialsettlementforthedebtsecuritieswillbemadeinimmediatelyavailablefunds.SecondarymarkettradingbetweenDTCparticipantswilloccurintheordinarywayinaccordancewithDTCrulesandwillbesettledinimmediatelyavailablefunds.SecondarymarkettradingbetweenClearstreamcustomersand/orEuroclearparticipantswilloccurintheordinarywayinaccordancewiththeapplicablerulesandoperatingproceduresofClearstreamandEuroclear,asapplicable,andwillbesettledusingtheproceduresapplicabletoconventionaleurobondsinimmediatelyavailablefunds.
Cross-markettransfersbetweenpersonsholdingdirectlyorindirectlythroughDTC,ontheonehand,anddirectlyorindirectlythroughClearstreamcustomersorEuroclearparticipants,ontheother,willbeeffectedthroughDTCinaccordancewithDTCrulesonbehalfoftherelevantEuropeaninternationalclearingsystembyitsU.S.depositary;however,suchcross-markettransactionswillrequiredeliveryofinstructionstotherelevantEuropeaninternationalclearingsystembythecounterpartyinsuchsysteminaccordancewithitsrulesandproceduresandwithinitsestablisheddeadlines(Europeantime).TherelevantEuropeaninternationalclearingsystemwill,ifthetransactionmeetsitssettlementrequirements,deliverinstructionstotheU.S.depositarytotakeactiontoeffectfinalsettlementonits
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behalfbydeliveringorreceivingthedebtsecuritiesinDTC,andmakingorreceivingpaymentinaccordancewithnormalproceduresforsame-dayfundssettlementapplicabletoDTC.ClearstreamcustomersandEuroclearparticipantsmaynotdeliverinstructionsdirectlytotheirU.S.depositaries.
Becauseoftime-zonedifferences,creditsofthedebtsecuritiesreceivedinClearstreamorEuroclearasaresultofatransactionwithaDTCparticipantwillbemadeduringsubsequentsecuritiessettlementprocessinganddatedthebusinessdayfollowingtheDTCsettlementdate.SuchcreditsoranytransactionsinthedebtsecuritiessettledduringsuchprocessingwillbereportedtotherelevantClearstreamcustomersorEuroclearparticipantsonsuchbusinessday.CashreceivedinClearstreamorEuroclearasaresultofsalesofthedebtsecuritiesbyorthroughaClearstreamcustomeroraEuroclearparticipanttoaDTCparticipantwillbereceivedwithvalueontheDTCsettlementdatebutwillbeavailableintherelevantClearstreamorEuroclearcashaccountonlyasofthebusinessdayfollowingsettlementinDTC.
AlthoughDTC,ClearstreamandEuroclearhaveagreedtotheforegoingprocedurestofacilitatetransfersofthedebtsecuritiesamongparticipantsofDTC,ClearstreamandEuroclear,theyareundernoobligationtoperformorcontinuetoperformsuchproceduresandsuchproceduresmaybechangedordiscontinuedatanytime.
Certificated Notes
Individualcertificatesinrespectofanydebtsecuritieswillnotbeissuedinexchangefortheglobalnotes,exceptinverylimitedcircumstances.WewillissueorcausetobeissuedcertificatednotestoeachpersonthatDTCidentifiesasthebeneficialownerofthedebtsecuritiesrepresentedbyaglobalnoteuponsurrenderbyDTCoftheglobalnoteif:
• DTCnotifiesusthatitisnolongerwillingorabletoactasadepositaryforsuchglobalnoteorceasestobeaclearingagencyregisteredundertheSecuritiesExchangeActof1934,andwehavenotappointedasuccessordepositarywithin90daysofthatnoticeorbecomingawarethatDTCisnolongersoregistered;
• aneventofdefaulthasoccurredandiscontinuing,andDTCrequeststheissuanceofcertificatednotes;or
• wedeterminenottohavethedebtsecuritiesofsuchseriesrepresentedbyaglobalnote.
NeitherwenorthetrusteewillbeliableforanydelaybyDTC,itsnomineeoranydirectorindirectparticipantinidentifyingthebeneficialownersofthedebtsecurities.Weandthetrusteemayconclusivelyrelyon,andwillbeprotectedinrelyingon,instructionsfromDTCoritsnomineeforallpurposes,includingwithrespecttotheregistrationanddelivery,andtherespectiveprincipalamounts,ofthecertificatednotestobeissued.
SubordinatedIndentureProvisions
Thesubordinateddebtsecuritieswillbeissuedunderthesubordinatedindenture.Thesubordinateddebtsecuritieswillrankonanequalbasiswithcertainofourothersubordinateddebtthatmaybeoutstandingfromtimetotimeandwillrankjuniortoallofourseniordebt,asdefinedbelow,includinganyseniordebtsecuritiesthatmaybeoutstandingfromtimetotime.
Subordination.Ifweissuesubordinateddebtsecurities,theaggregateprincipalamountofseniordebtoutstandingasofarecentdatewillbesetforthintheapplicableprospectussupplement.Neithertheseniornorthesubordinatedindenturerestrictstheamountofseniordebtthatwemayincur.
Holdersofsubordinateddebtsecuritiesshouldrecognizethatcontractualprovisionsinthesubordinatedindenturemayprohibitusfrommakingpaymentsonthosesecurities.Subordinateddebtsecuritiesaresubordinateandjuniorinrightofpayment,totheextentandinthemannerstatedinthe
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subordinatedindentureoranysupplementtheretotoallofourseniordebt,includingalldebtsecuritieswehaveissuedandwillissueundertheseniorindenture.
Asusedinthesubordinatedindentureandthisprospectus,theterm"seniordebt"meanstheprincipal,premium,ifany,unpaidinterestandallfeesandotheramountspayableinconnectionwithanydebtformoneyborrowedotherthan(1)debtincurred(a)withrespecttocertainelectionsunderthefederalbankruptcycode,(b)debttooursubsidiaries,(c)debttoouremployees,(d)taxliability,and(e)certaintradepayables,(2)allobligationsunderinterestrate,currencyandcommodityswaps,caps,floors,collars,hedgearrangements,forwardcontractsorsimilaragreementsand(3)renewals,modificationsandrefundsofanysuchdebt.
Unlessotherwiseindicatedintheapplicableprospectussupplement,wemaynotpayprincipalof,premium,ifany,orinterestonanysubordinateddebtsecuritiesordefease,purchase,redeemorotherwiseretiresuchsecuritiesif:
• adefaultinthepaymentofanyprincipal,orpremium,ifany,orinterestonanyseniordebt,occursandiscontinuingoranyotheramountowinginrespectofanyseniordebtisnotpaidwhendue;or
• anyotherdefaultoccurswithrespecttoanyseniordebtandthematurityofsuchseniordebtisacceleratedinaccordancewithitsterms,
unlessanduntilsuchdefaultinpaymentoreventofdefaulthasbeencuredorwaivedandanysuchaccelerationisrescindedorsuchseniordebthasbeenpaidinfullincash.
Ifthereisanypaymentordistributionofourassetstocreditorsuponatotalorpartialliquidationoratotalorpartialdissolutionorinabankruptcy,reorganization,insolvency,receivershiporsimilarproceeding,holdersofallpresentandfutureseniordebt(whichwillincludeinterestaccruingafter,orwhichwouldaccruebutfor,thecommencementofanybankruptcy,reorganization,insolvency,receivershiporsimilarproceeding)areentitledtoreceivepaymentinfullbeforeanypaymentordistribution,whetherincash,securitiesorotherproperty,inrespectofthesubordinatedindebtedness.Inaddition,unlessotherwiseindicatedintheapplicableprospectussupplement,inanysuchevent,paymentsordistributionswhichwouldotherwisebemadeonsubordinateddebtsecuritieswillgenerallybepaidtotheholdersofseniordebt,ortheirrepresentatives,inaccordancewiththeprioritiesexistingamongthesecreditorsatthattimeuntiltheseniordebtispaidinfull.
Afterpaymentinfullofallpresentandfutureseniordebt,holdersofsubordinateddebtsecuritieswillbesubrogatedtotherightsofanyholdersofseniordebttoreceiveanyfurtherpaymentsordistributionsthatareapplicabletotheseniordebtuntilallthesubordinateddebtsecuritiesarepaidinfull.Thesubordinatedindentureprovidesthattheforegoingsubordinationprovisionsmaynotbechangedinamannerwhichwouldbeadversetotheholdersofseniordebtwithouttheconsentoftheholdersofsuchseniordebt.
Theprospectussupplementdeliveredinconnectionwiththeofferingofaseriesofsubordinateddebtsecuritieswillsetforthamoredetaileddescriptionofthesubordinationprovisionsapplicabletoanysuchdebtsecurities.
Ifthetrusteeunderthesubordinatedindentureoranyholdersofthesubordinateddebtsecuritiesreceiveanypaymentordistributionthatisprohibitedunderthesubordinationprovisions,thenthetrusteeortheholderswillhavetorepaythatmoneytotheholdersoftheseniordebt.
Evenifthesubordinationprovisionspreventusfrommakinganypaymentwhendueonthesubordinateddebtsecuritiesofanyseries,wewillbeindefaultonourobligationsunderthatseriesifwedonotmakethepaymentwhendue.Thismeansthatthetrusteeunderthesubordinatedindentureandtheholdersofthatseriescantakeactionagainstus,buttheywillnotreceiveanymoneyuntiltheclaimsoftheholdersofseniordebthavebeenfullysatisfied.
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DESCRIPTIONOFCAPITALSTOCK
Setforthbelowisasummarydescriptionofthematerialtermsofourcapitalstock.Formoreinformation,pleaseseeourrestatedcertificateofincorporation,asamended.
DescriptionofCommonStock
Wemayissuesharesofourcommonstock,eitherseparatelyortogetherwithothersecuritiesofferedpursuanttothisprospectus.Underourrestatedcertificateofincorporation,asamended,weareauthorizedtoissueupto11,200,000,000sharesofourcommonstock,parvalue$0.25pershare,ofwhich4,272,559,271shareswereissuedandoutstandingasofApril24,2017.Youshouldreadtheapplicableprospectussupplementrelatingtoanofferingofsharesofourcommonstock,orofsecuritiesconvertible,exchangeableorexercisableforsharesofourcommonstock,forthetermsofsuchoffering,includingthenumberofsharesofcommonstockoffered,theinitialofferingpriceandmarketpricesanddividendinformationrelatingtoourcommonstock.
Theholdersofourcommonstockareentitledtoonevoteforeachshareonallmatterssubmittedtoavoteofshareowners.Eachshareofourcommonstockoutstandingisentitledtoparticipateequallyinanydistributionofnetassetsmadetotheshareownersintheliquidation,dissolutionorwindingupofourCompanyandisentitledtoparticipateequallyindividendsasandwhendeclaredbyourboardofdirectors.Therearenoredemption,sinkingfund,conversionorpreemptiverightswithrespecttothesharesofourcommonstock.Allsharesofourcommonstockhaveequalrightsandpreferences.Therights,preferencesandprivilegesoftheholdersofourcommonstockaresubjecttoandmaybeadverselyaffectedbytherightsofholdersofsharesofanyseriesofourpreferredstockthatwemaydesignateandissueinthefuture.
DescriptionofPreferredStock
Ourrestatedcertificateofincorporation,asamended,authorizesourboardofdirectorstoissue,fromtimetotime,upto100,000,000sharesofpreferredstock,parvalue$1.00pershare,inoneormoreseries,subjecttocertainlimitationsprescribedbylaw.Therearenopreferredsharesissuedandoutstandingasofthedateofthisprospectus.Ourboardofdirectorsisauthorizedtoestablishfromtimetotimethenumberofsharestobeincludedinanyseriesofpreferredstock,andtofixthedesignation,powers,preferences,andrightsofthesharesofsuchseriesandanyqualifications,limitationsorrestrictionsthereof.
Thespecifictermsofanypreferredstocktobesoldunderthisprospectuswillbedescribedintheapplicableprospectussupplement.Ifsoindicatedinsuchprospectussupplement,thetermsofthepreferredstockofferedmaydifferfromthegeneraltermssetforthbelow.Unlessotherwisespecifiedintheprospectussupplementrelatingtothepreferredstockofferedthereby,eachseriesofpreferredstockofferedwillrankequalinrightofpaymenttoallotherseriesofourpreferredstock,andholdersthereofwillhavenopreemptiverights.Thepreferredstockofferedwill,whenissued,befullypaidandnonassessable.
Youshouldreadtheapplicableprospectussupplementforthetermsofthepreferredstockoffered.Thetermsofthepreferredstocksetforthinsuchprospectussupplementmayincludethefollowing,asapplicabletothepreferredstockofferedthereby:
• thetitleandstatedvalueofthepreferredstock;
• thenumberofsharesofthepreferredstockoffered;
• theliquidationpreferenceandtheofferingpriceofthepreferredstock;
• thedividendratesofthepreferredstockand/ormethodsofcalculationofsuchdividends;
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• periodsand/orpaymentdatesforthepreferredstockdividends;
• whetherdividendsonthepreferredstockarecumulative;
• theliquidationrightsofthepreferredstock;
• theproceduresforanyauctionandremarketing,ifany,ofthepreferredstock;
• thesinkingfundprovisions,ifapplicable,forthepreferredstock;
• theredemptionprovisions,ifapplicable,forthepreferredstock;
• whetherthepreferredstockwillbeconvertibleintoorexchangeableforothersecuritiesand,ifso,thetermsandconditionsofconversionorexchange,includingtheconversionpriceorexchangeratioandtheconversionorexchangeperiodorthemethodofdeterminingthesame;
• whetherthepreferredstockwillhavevotingrightsand,ifso,thetermsofsuchvotingrights;
• whetherthepreferredstockwillbelistedonanysecuritiesexchange;
• whetherthepreferredstockwillbeissuedwithanyothersecuritiesand,ifso,theamountandtermsofsuchothersecurities;and
• anyotherspecificterms,preferencesorrightsof,orlimitationsorrestrictionson,thepreferredstock.
Ourauthorizedsharesofcommonstockandpreferredstockareavailableforissuancewithoutfurtheractionbyourshareowners,unlesssuchactionisrequiredbyapplicablelawortherulesofthestockexchangeorautomatedquotationsystemonwhichoursecuritiesmaybelistedortrade.Iftheapprovalofourshareownersisnotrequiredfortheissuanceofsharesofourcommonstockorpreferredstock,ourboardofdirectorsmaydeterminetoissueshareswithoutseekingshareowners'approval.
Ourboardofdirectorscouldissueaseriesofpreferredstockthatcould,dependingonthetermsofsuchseries,delay,deferorpreventachangeincontrolofourCompany.OurboardofdirectorswouldmakeanydeterminationtoissuesuchsharesbasedonitsjudgmentastothebestinterestsofourCompanyandourshareowners.Ourboardofdirectors,insoacting,couldissuepreferredstockhavingtermsthatcoulddiscourageanattempttoacquireourCompany,includingtenderoffersorothertransactionsthatsome,oramajority,ofourshareownersmightbelievetobeintheirbestinterests,orinwhichourshareownersmightreceiveapremiumfortheirstockoverthethencurrentmarketpriceofsuchstock.
CertainAnti-takeoverMatters
Ourrestatedcertificateofincorporation,asamended,andby-lawscontainprovisionsthatmaymakeitmoredifficultforapotentialacquirertoacquireusbymeansofatransactionthatisnotnegotiatedwithourboardofdirectors.TheseprovisionsandGeneralCorporationLawoftheStateofDelaware,orthe"DGCL,"coulddelayorprevententirelyamergeroracquisitionthatourshareownersconsiderfavorable.Theseprovisionsmayalsodiscourageacquisitionproposalsorhavetheeffectofdelayingorpreventingentirelyachangeincontrol,whichcouldharmourstockprice.OurboardofdirectorsisnotawareofanycurrentefforttoaccumulatesharesofourcommonstockortootherwiseobtaincontrolofourCompanyanddoesnotcurrentlycontemplateadoptingorrecommendingtheapprovalofanyotheractionthatmighthavetheeffectofdelaying,deterringorpreventingachangeincontrolofourCompany.
Followingisadescriptionoftheanti-takeovereffectsofcertainprovisionsofourrestatedcertificateofincorporation,asamended,andofourby-laws.
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No cumulative voting.TheDGCLprovidesthatstockholdersofaDelawarecorporationarenotentitledtotherighttocumulatevotesintheelectionofdirectorsunlessitscertificateofincorporation,asamended,providesotherwise.Ourrestatedcertificateofincorporation,asamended,doesnotprovideforcumulativevoting.
Calling of special meetings of shareowners.Ourby-lawsprovidethatspecialmeetingsofourshareownersmaybecalledonlybyoratthedirectionofourboardofdirectors,thechairmanofourboardofdirectors,ourchiefexecutiveofficerorbyoursecretaryifappropriatelyrequestedbyaperson(orgroupofpersons)beneficiallyowningatleastatwenty-fivepercent(25%)"netlongposition"oftheCompany'soutstandingsharesofcommonstock.
Advance notice requirements for shareowner proposals and director nominations.Ourby-lawsprovidethatshareownersseekingtonominatecandidatesforelectionasdirectorsortobringbusinessbeforeanannualmeetingofshareownersorashareownerrequestedspecialmeetingofshareownersmustprovidetimelynoticeoftheirproposalinwritingtoourcorporatesecretary.
Generally,tobetimely,ashareowner'snoticeregardinganannualmeetingofshareownersmustbereceivedatourprincipalexecutiveofficesnotlessthan120dayspriortothefirstanniversaryofthepreviousyear'sannualmeeting.Ourby-lawsalsospecifyrequirementsastotheformandcontentofashareowner'snotice.Theseprovisionsmayimpedeshareowners'abilitytobringmattersbeforeanannualmeetingofshareowners,ashareownerrequestedspecialmeetingofshareownersormakenominationsfordirectors.
Limitations on liability and indemnification of officers and directors.TheDGCLauthorizescorporationstolimitoreliminatethepersonalliabilityofdirectorstocorporationsandtheirstockholdersformonetarydamagesforbreachesofdirectors'fiduciaryduties.Ourrestatedcertificateofincorporation,asamended,includesaprovisionthateliminatesthepersonalliabilityofdirectorsformonetarydamagesforanybreachoffiduciarydutyinsuchcapacity,exceptforliability:
• foranybreachofthedirector'sdutyofloyaltytousorourshareowners;
• foractsoromissionsnotingoodfaithorwhichinvolveintentionalmisconductoraknowingviolationoflaw;
• underSection174oftheDGCL(providingforliabilityofdirectorsforunlawfulpaymentofdividendsorunlawfulstockpurchasesorredemptions);or
• foranytransactionfromwhichthedirectorderivedanyimproperpersonalbenefit.
Ourrestatedcertificateofincorporation,asamended,furtherprovides,thatiftheDGCLisamendedtoauthorizecorporateactionfurthereliminatingorlimitingthepersonalliabilityofdirectors,thentheliabilityofthedirectorswillbeeliminatedorlimitedtothefullestextentpermittedbytheDGCL,assoamended.
Wearealsoexpresslyauthorizedtocarrydirectors'andofficers'insuranceforthebenefitofourdirectors,officers,employeesandagents.Webelievethattheseindemnificationprovisionsandinsuranceareusefultoattractandretainqualifieddirectorsandexecutiveofficers.
Thelimitationofliabilityandindemnificationprovisionsintherestatedcertificateofincorporation,asamended,andtheby-lawsmaydiscourageourshareownersfrombringingalawsuitagainstdirectorsforbreachoftheirfiduciaryduty.Theseprovisionsmayalsohavetheeffectofreducingthelikelihoodofderivativelitigationagainstdirectorsandofficers,eventhoughsuchanaction,ifsuccessful,mightotherwisebenefitusandourshareowners.Inaddition,theshareowner'sinvestmentmaybeadverselyaffectedtotheextentwepaythecostsofsettlementanddamageawardsagainstdirectorsandofficerspursuanttotheseindemnificationprovisions.
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Board authority to amend by-laws.Undertheby-laws,ourboardofdirectorshastheauthoritytoadopt,amendorrepealtheby-lawswithouttheapprovalofourshareowners.However,theholdersofcommonstockwillalsohavetherighttoinitiateontheirown,withtheaffirmativevoteofamajorityofthesharesoutstandingandwithouttheapprovalofourboardofdirectors,proposalstoadopt,amendorrepealtheby-laws.
General Corporation Law of the State of Delaware.WeareaDelawarecorporationthatissubjecttoSection203oftheDGCL.Section203providesthat,subjecttocertainexceptionsspecifiedinthelaw,aDelawarecorporationshallnotengageincertain"businesscombinations"withany"interestedstockholder"forathree-yearperiodfollowingthetimethatthestockholderbecameaninterestedstockholderunless:
• priortosuchtime,theboardofdirectorsapprovedeitherthebusinesscombinationorthetransactionthatresultedinthestockholderbecominganinterestedstockholder;
• uponconsummationofthetransactionthatresultedinthestockholderbecominganinterestedstockholder,theinterestedstockholderownedatleast85%ofthecorporation'svotingstockoutstandingatthetimethetransactioncommenced,excludingcertainshares;or
• atorsubsequenttothattime,thebusinesscombinationisapprovedbytheboardofdirectorsofthecorporationandbytheaffirmativevoteofholdersofatleast662/3%oftheoutstandingvotingstockthatisnotownedbytheinterestedstockholder.
Generally,a"businesscombination"includesamerger,assetorstocksaleorothertransactionresultinginafinancialbenefittotheinterestedstockholder.Subjecttocertainexceptions,an"interestedstockholder"isapersonwho,togetherwiththatperson'saffiliatesandassociates,owns,orwithinthepreviousthreeyearsdidown,15%ormoreofourvotingstock.
Undercertaincircumstances,Section203makesitmoredifficultforapersonwhowouldbean"interestedstockholder"toeffectvariousbusinesscombinationswithacorporationforathreeyearperiod.TheprovisionsofSection203mayencourageanyentityinterestedinacquiringourcompanytonegotiateinadvancewithourboardofdirectorsbecausethestockholderapprovalrequirementwouldbeavoidedifourboardofdirectorsapproveseitherthebusinesscombinationorthetransactionthatresultsinsuchentitybecominganinterestedstockholder.TheseprovisionsalsomaymakeitmoredifficulttoaccomplishtransactionsinvolvingourCompanythatourshareownersmayotherwisedeemtobeintheirbestinterests.
Listing
OurcommonstockislistedandtradedontheNewYorkStockExchangeunderthesymbol"KO."
TransferAgentandRegistrar
ThetransferagentandregistrarforourcommonstockisComputershareTrustCompany,N.A.ItsaddressisP.O.Box43070,Providence,RI02940-3070anditstelephonenumberis(888)265-3747.
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DESCRIPTIONOFWARRANTS
Thissectiondescribesthegeneraltermsandprovisionsofthewarrants.Theapplicableprospectussupplementwilldescribethespecifictermsofthewarrantsofferedbythatprospectussupplementandanygeneraltermsoutlinedinthissectionthatwillnotapplytothosewarrants.
Wemayissuewarrantstopurchasedebtorequitysecurities.Eachwarrantwillentitletheholderofwarrantstopurchaseforcashtheamountofdebtorequitysecuritiesattheexercisepricestatedordeterminableintheprospectussupplementforthewarrants.Wemayissuewarrantsindependentlyortogetherwithanyofferedsecurities.Thewarrantsmaybeattachedtoorseparatefromthoseofferedsecurities.Wewillissuethewarrantsunderwarrantagreementstobeenteredintobetweenusandabankortrustcompany,aswarrantagent,allasdescribedintheapplicableprospectussupplement.Thewarrantagentwillactsolelyasouragentinconnectionwiththewarrantsandwillnotassumeanyobligationorrelationshipofagencyortrustfororwithanyholdersorbeneficialownersofwarrants.
Theprospectussupplementrelatingtoanywarrantsthatwemayofferwillcontainthespecifictermsofthewarrants.Thesetermsmayincludethefollowing:
• thetitleofthewarrants;
• thepriceorpricesatwhichthewarrantswillbeissuedandthecurrencyorcompositecurrencyyoumayusetopurchasethewarrants;
• thedesignation,amountandtermsofthesecuritiesforwhichthewarrantsareexercisable;
• thedesignationandtermsoftheothersecurities,ifany,withwhichthewarrantsaretobeissuedandthenumberofwarrantsissuedwitheachothersecurity;
• ifapplicable,theprincipalamountofdebtsecuritiesyoumaypurchaseuponexerciseofeachdebtwarrantandthepriceandcurrencyorcompositecurrencyorotherconsideration(whichmayincludedebtsecurities)youmayusetopurchasesuchprincipalamountofdebtsecuritiesuponsuchexercise;
• theaggregatenumberofwarrants;
• anyprovisionsforadjustmentofthenumberoramountofsecuritiesreceivableuponexerciseofthewarrantsortheexercisepriceofthewarrants;
• thepriceorpricesatwhichthesecuritiespurchasableuponexerciseofthewarrantsmaybepurchased;
• thedateonandafterwhichthewarrantsandthesecuritiespurchasableuponexerciseofthewarrantswillbeseparatelytransferable,ifapplicable;
• adiscussionofanymaterialU.S.federalincometaxconsiderationsapplicabletotheexerciseofthewarrants;
• thedateonwhichtherighttoexercisethewarrantswillcommence,andthedateonwhichtherightwillexpire;
• themaximumorminimumnumberofwarrantsthatmaybeexercisedatanytime;
• thetermsofanymandatoryoroptionredemptionbyus;
• theidentityofthewarrantagent;
• informationwithrespecttobook-entryprocedures,ifany;and
• anyothertermsofthewarrants,includingterms,proceduresandlimitationsrelatingtotheexchangeandexerciseofthewarrants.
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DESCRIPTIONOFDEPOSITARYSHARES
Thissectiondescribesthegeneraltermsandprovisionsofthedepositaryshares.Theapplicableprospectussupplementwilldescribethespecifictermsofthedepositarysharesofferedbythatprospectussupplementandanygeneraltermsoutlinedinthissectionthatwillnotapplytothosedepositaryshares.
General
Wemay,atouroption,electtoofferdepositaryshares,eachrepresentingafraction(tobesetforthintheprospectussupplementrelatingtoaparticularseriesofpreferredstock)ofashareofaparticularclassorseriesofpreferredstockasdescribedbelow.Intheeventweelecttodoso,depositaryreceiptsevidencingdepositaryshareswillbeissuedtothepublic.
Thesharesofanyclassorseriesofpreferredstockrepresentedbydepositaryshareswillbedepositedunderadepositagreementamongus,adepositaryselectedbyusandtheholdersofthedepositaryreceipts.ThedepositarywillbeabankortrustcompanyhavingitsprincipalofficeintheUnitedStatesandhavingacombinedcapitalandsurplusofatleast$50,000,000.Subjecttothetermsofthedepositagreement,eachownerofadepositarysharewillbeentitled,inproportiontotheapplicablefractionofashareofpreferredstockrepresentedbysuchdepositaryshare,toalltherightsandpreferencesofthesharesofpreferredstockrepresentedbythedepositaryshare,includingdividend,voting,redemptionandliquidationrights.Thedepositaryshareswillbeevidencedbydepositaryreceiptsissuedpursuanttothedepositagreement.Depositaryreceiptswillbedistributedtothosepersonspurchasingthefractionalsharesoftherelatedclassorseriesofpreferredsharesinaccordancewiththetermsoftheofferingdescribedintheapplicableprospectussupplement.
Pendingthepreparationofdefinitivedepositaryreceiptsthedepositarymay,uponourwrittenorder,issuetemporarydepositaryreceiptssubstantiallyidenticalto,andentitlingtheholdersthereoftoalltherightspertainingto,thedefinitivedepositaryreceiptsbutnotindefinitiveform.Definitivedepositaryreceiptswillbepreparedwithoutunreasonabledelay,andtemporarydepositaryreceiptswillbeexchangeablefordefinitivedepositaryreceiptswithoutchargetotheholder.
DividendsandOtherDistributions
Thedepositarywilldistributeallcashdividendsorothercashdistributionsreceivedforthepreferredstocktotheentitledrecordholdersofdepositarysharesinproportiontothenumberofdepositarysharesthattheholderownsontherelevantrecorddate,provided,however,thatifweorthedepositaryisrequiredbylawtowithholdanamountonaccountoftaxes,thentheamountdistributedtotheholdersofdepositarysharesshallbereducedaccordingly.Thedepositarywilldistributeonlyanamountthatcanbedistributedwithoutattributingtoanyholderofdepositarysharesafractionofonecent.Thedepositarywilladdtheundistributedbalancetoandtreatitaspartofthenextsumreceivedbythedepositaryfordistributiontoholdersofthedepositaryshares.
Ifthereisanon-cashdistribution,thedepositarywilldistributepropertyreceivedbyittotheentitledrecordholdersofdepositaryshares,inproportion,insofaraspossible,tothenumberofdepositarysharesownedbytheholders,unlessthedepositarydetermines,afterconsultationwithus,thatitisnotfeasibletomakesuchdistribution.Ifthisoccurs,thedepositarymay,withourapproval,sellsuchpropertyanddistributethenetproceedsfromsuchsaletotheholders.Thedepositagreementalsowillcontainprovisionsrelatingtohowanysubscriptionorsimilarrightsthatwemayoffertoholdersofthepreferredstockwillbeavailabletotheholdersofthedepositaryshares.
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WithdrawalofShares
Uponsurrenderofthedepositaryreceiptsatthecorporatetrustofficeofthedepositary,unlesstherelateddepositaryshareshavepreviouslybeencalledforredemption,convertedorexchangedintoourothersecurities,theholderofthedepositarysharesevidencedtherebyisentitledtodeliveryofthenumberofwholesharesoftherelatedclassorseriesofpreferredstockandanymoneyorotherpropertyrepresentedbysuchdepositaryshares.Holdersofdepositaryreceiptswillbeentitledtoreceivewholesharesoftherelatedclassorseriesofpreferredstockonthebasissetforthintheprospectussupplementforsuchclassorseriesofpreferredstock,butholdersofsuchwholesharesofpreferredstockwillnotthereafterbeentitledtoexchangethemfordepositaryshares.Ifthedepositaryreceiptsdeliveredbytheholderevidenceanumberofdepositarysharesinexcessofthenumberofdepositarysharesrepresentingthenumberofwholesharesofpreferredstocktobewithdrawn,thedepositarywilldelivertosuchholderatthesametimeanewdepositaryreceiptevidencingsuchexcessnumberofdepositaryshares.Innoeventwillfractionalsharesofpreferredstockbedelivereduponsurrenderofdepositaryreceiptstothedepositary.
Conversion,ExchangeandRedemption
Ifanyclassorseriesofpreferredstockunderlyingthedepositarysharesmaybeconvertedorexchanged,eachrecordholderofdepositaryreceiptsrepresentingthesharesofpreferredstockbeingconvertedorexchangedwillhavetherightorobligationtoconvertorexchangethedepositarysharesrepresentedbythedepositaryreceipts.Wheneverweredeemorconvertsharesofpreferredstockheldbythedepositary,thedepositarywillredeemorconvert,atthesametime,thenumberofdepositarysharesrepresentingthepreferredstocktoberedeemedorconverted.Thedepositarywillredeemthedepositarysharesfromtheproceedsitreceivesfromthecorrespondingredemptionoftheapplicableseriesofpreferredstock.Thedepositarywillmailnoticeofredemptionorconversiontotherecordholdersofthedepositarysharesthataretoberedeemedbetween30and60daysbeforethedatefixedforredemptionorconversion.Theredemptionpriceperdepositarysharewillbeequaltotheapplicablefractionoftheredemptionpricepershareontheapplicableclassorseriesofpreferredstock.Iflessthanallthedepositarysharesaretoberedeemed,thedepositarywillselectwhichsharesaretoberedeemedbylotonaproratabasisorbyanyotherequitablemethodasthedepositarymaydecide.Aftertheredemptionorconversiondate,thedepositarysharescalledforredemptionorconversionwillnolongerbeoutstanding.Whenthedepositarysharesarenolongeroutstanding,allrightsoftheholderswillend,excepttherighttoreceivemoney,securitiesorotherpropertypayableuponredemptionorconversion.
VotingthePreferredStock
Whenthedepositaryreceivesnoticeofameetingatwhichtheholdersoftheparticularclassorseriesofpreferredstockareentitledtovote,thedepositarywillmailtheparticularsofthemeetingtotherecordholdersofthedepositaryshares.Eachrecordholderofdepositarysharesontherecorddatemayinstructthedepositaryonhowtovotethesharesofpreferredstockunderlyingtheholder'sdepositaryshares.Thedepositarywilltry,ifpractical,tovotethenumberofsharesofpreferredstockunderlyingthedepositarysharesaccordingtotheinstructions.Wewillagreetotakeallreasonableactionrequestedbythedepositarytoenableittovoteasinstructed.
AmendmentandTerminationoftheDepositAgreement
Weandthedepositarymayagreeatanytimetoamendthedepositagreementandthedepositaryreceiptevidencingthedepositaryshares.Anyamendmentthat(1)imposesorincreasescertainfees,taxesorotherchargespayablebytheholdersofthedepositarysharesasdescribedinthedepositagreementor(2)otherwisemateriallyadverselyaffectsanysubstantialexistingrightsofholdersofdepositaryshares,willnottakeeffectuntilsuchamendmentisapprovedbytheholdersofatleasta
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majorityofthedepositarysharesthenoutstanding.Anyholderofdepositarysharesthatcontinuestoholditssharesaftersuchamendmenthasbecomeeffectivewillbedeemedtohaveagreedtotheamendment.
Wemaydirectthedepositarytoterminatethedepositagreementbymailinganoticeofterminationtoholdersofdepositarysharesatleast30dayspriortotermination.Thedepositarymayterminatethedepositagreementif90dayshaveelapsedafterthedepositarydeliveredwrittennoticeofitselectiontoresignandasuccessordepositaryisnotappointed.Inaddition,thedepositagreementwillautomaticallyterminateif:
• thedepositaryhasredeemedallrelatedoutstandingdepositaryshares;
• alloutstandingsharesofpreferredstockhavebeenconvertedintoorexchangedforcommonstock;or
• wehaveliquidated,terminatedorwoundupourbusinessandthedepositaryhasdistributedthepreferredstockoftherelevantseriestotheholdersoftherelateddepositaryshares.
ReportsandObligations
Thedepositarywillforwardtotheholdersofdepositarysharesallreportsandcommunicationsfromusthataredeliveredtothedepositaryandthatwearerequiredbylaw,therulesofanapplicablesecuritiesexchangeorourrestatedcertificateofincorporation,asamended,tofurnishtotheholdersofthepreferredstock.Neitherwenorthedepositarywillbeliableifthedepositaryispreventedordelayedbylaworanycircumstancesbeyonditscontrolinperformingitsobligationsunderthedepositagreement.Thedepositagreementlimitsourobligationstoperformanceingoodfaithofthedutiesstatedinthedepositagreement.Thedepositaryassumesnoobligationandwillnotbesubjecttoliabilityunderthedepositagreementexcepttoperformsuchobligationsasaresetforthinthedepositagreementwithoutnegligenceorbadfaith.Neitherwenorthedepositarywillbeobligatedtoprosecuteordefendanylegalproceedingconnectedwithanydepositarysharesorclassorseriesofpreferredstockunlesstheholdersofdepositarysharesrequestingustodosofurnishuswithasatisfactoryindemnity.Inperformingourobligations,weandthedepositarymayrelyandactupontheadviceofourcounselonanyinformationprovidedtousbyapersonpresentingsharesfordeposit,anyholderofareceipt,oranyotherdocumentbelievedbyusorthedepositarytobegenuineandtohavebeensignedorpresentedbytheproperpartyorparties.
PaymentofFeesandExpenses
Wewillpayallfees,chargesandexpensesofthedepositary,includingtheinitialdepositofthepreferredstockandanyredemptionofthepreferredstock.Holdersofdepositaryshareswillpaytaxesandgovernmentalchargesandanyotherchargesasarestatedinthedepositagreementfortheiraccounts.
ResignationandRemovalofDepositary
Atanytime,thedepositarymayresignbydeliveringnoticetous,andwemayremovethedepositaryatanytime.Resignationsorremovalswilltakeeffectupontheappointmentofasuccessordepositaryanditsacceptanceoftheappointment.Thesuccessordepositarymustbeappointedwithin90daysafterthedeliveryofthenoticeofresignationorremovalandmustbeabankortrustcompanyhavingitsprincipalofficeintheUnitedStatesandhavingacombinedcapitalandsurplusofatleast$50,000,000.
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DESCRIPTIONOFPURCHASECONTRACTS
Thissectiondescribesthegeneraltermsandprovisionsofthepurchasecontracts.Theapplicableprospectussupplementwilldescribethespecifictermsofthepurchasecontractsofferedbythatprospectussupplementandanygeneraltermsoutlinedinthissectionthatwillnotapplytothosepurchasecontracts.
Wemayissuepurchasecontractsforthepurchaseorsaleof:
• debtorequitysecuritiesissuedbyusorsecuritiesofthirdparties,abasketofsuchsecurities,anindexorindicesofsuchsecuritiesoranycombinationoftheaboveasspecifiedintheapplicableprospectussupplement;
• currencies;or
• commodities.
Eachpurchasecontractwillentitletheholderthereoftopurchaseorsell,andobligateustosellorpurchase,onspecifieddates,suchsecurities,currenciesorcommoditiesataspecifiedpurchaseprice,whichmaybebasedonaformula,allassetforthintheapplicableprospectussupplement.Wemay,however,satisfyourobligations,ifany,withrespecttoanypurchasecontractbydeliveringthecashvalueofsuchpurchasecontractorthecashvalueofthepropertyotherwisedeliverableor,inthecaseofpurchasecontractsonunderlyingcurrencies,bydeliveringtheunderlyingcurrencies,assetforthintheapplicableprospectussupplement.Theapplicableprospectussupplementwillalsospecifythemethodsbywhichtheholdersmaypurchaseorsellsuchsecurities,currenciesorcommoditiesandanyacceleration,cancellationorterminationprovisionsorotherprovisionsrelatingtothesettlementofapurchasecontract.
Thepurchasecontractsmayrequireustomakeperiodicpaymentstotheholdersthereoforviceversa,whichpaymentsmaybedeferredtotheextentsetforthintheapplicableprospectussupplement,andthosepaymentsmaybeunsecuredorprefundedonsomebasis.Thepurchasecontractsmayrequiretheholdersthereoftosecuretheirobligationsinaspecifiedmannertobedescribedintheapplicableprospectussupplement.Alternatively,purchasecontractsmayrequireholderstosatisfytheirobligationsthereunderwhenthepurchasecontractsareissued.Ourobligationtosettlesuchpre-paidpurchasecontractsontherelevantsettlementdatemayconstituteindebtedness.
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DESCRIPTIONOFGUARANTEES
Wemayofferguarantees,issuedbyus,ofdebtsecuritiesissuedbyoursubsidiaries.Exceptasotherwisedescribedinanyprospectussupplement,eachguaranteewillbeafullandunconditionalguaranteeofthepromptpayment,whendue,ofanyamountowedtotheholdersofthedebtsecuritiesofoursubsidiaries,andanyotheramountsduepursuanttoanyindenture,fiscalagencyagreementorothercontractgoverningsuchdebtsecurities.Wewilldescribetheparticulartermsofanyguaranteeweofferintheapplicableprospectussupplement,whichmayadd,updateorchangetheinformationonguaranteessetforthherein.Youshouldreviewthedocumentspursuanttowhichtheguaranteewillbeissued,whichwillbedescribedinmoredetailintheapplicableprospectussupplement.
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PLANOFDISTRIBUTION
Wemaysellthesecuritiesbeingofferedherebyinoneormoreofthefollowingwaysfromtimetotime:
• tounderwritersordealersforresaletothepublicortootherpurchasers;
• directlytooneormorepurchasers;
• throughagents;
• throughdealers;
• aspartofaconsentsolicitation;or
• throughacombinationofanyofthesemethodsofsale.
Wewilldiscloseintheapplicableprospectussupplementanyrequiredinformationwithrespecttothesellingstockholders,ifany.
Ifweuseunderwritersordealersinthesale,thesecuritieswillbeacquiredbytheunderwritersordealersfortheirownaccountandmayberesoldfromtimetotimeinoneormoretransactions,including:
• atafixedpriceorprices,whichmaybechangedfromtimetotime;
• in"atthemarketofferings"withinthemeaningofRule415(a)(4)undertheSecuritiesAct;
• atpricesrelatedtosuchprevailingmarketprices;or
• atnegotiatedprices.
Foreachseriesofsecurities,theapplicableprospectussupplementwillsetforththetermsoftheofferingofthesecurities,whichmayinclude:
• theinitialpublicofferingprice;
• themethodofdistribution,includingthenamesofanyunderwriters,dealersoragents;
• thepurchasepriceofthesecurities;
• ournetproceedsfromthesaleofsecuritiesbyus;
• anyunderwritingdiscounts,agencyfees,orothercompensationpayabletounderwritersoragents;
• anydiscountsorconcessionsallowedorreallowedorrepaidtodealers;and
• thesecuritiesexchangesonwhichthesecuritieswillbelisted,ifany.
Ifweuseunderwritersinthesale,theywillbuythesecuritiesfortheirownaccount.Theunderwritersmaythenresellthesecuritiesinoneormoretransactionsatafixedpublicofferingpriceoratvaryingpricesdeterminedatthetimeofsaleorthereafter.Theobligationsoftheunderwriterstopurchasethesecuritieswillbesubjecttocertainconditions.Theunderwritersmaybeobligatedtopurchaseallthesecuritiesofferediftheypurchaseanysecurities.Anyinitialpublicofferingpriceandanydiscountsorconcessionsallowedorreallowedorpaidtodealersmaybechangedfromtimetotime.Inconnectionwithanoffering,underwritersandsellinggroupmembersandtheiraffiliatesmayengageintransactionstostabilize,maintainorotherwiseaffectthemarketpriceofthesecuritiesinaccordancewithapplicablelaw.
Ifweusedealersinthesale,wewillsellsecuritiestosuchdealersasprincipals.Thedealersmaythenresellthesecuritiesinoneormoretransactionsatafixedofferingpriceoratvaryingpricestobe
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determinedbysuchdealersatthetimeofresale.Ifweuseagentsinthesale,theymayusetheirreasonablebesteffortstosolicitpurchasesfortheperiodoftheirappointment.Ifweselldirectly,nounderwriterswouldbeinvolved.Wearenotmakinganofferofsecuritiesinanyjurisdictionthatdoesnotpermitsuchanoffer.
Underwriters,dealersandagentsthatparticipateinthesecuritiesdistributionmaybedeemedtobeunderwritersasdefinedintheSecuritiesAct.Anydiscounts,commissionsorprofittheyreceivewhentheyresellthesecuritiesmaybetreatedasunderwritingdiscountsandcommissionsundertheSecuritiesAct.Wemayhaveagreementswithunderwriters,dealersandagentstoindemnifythemagainstcertaincivilliabilities,includingcertainliabilitiesundertheSecuritiesAct,ortocontributewithrespecttopaymentsthattheymayberequiredtomake.Underwriters,dealersandagentsmayengageintransactionswith,orperformservicesfor,usoroursubsidiariesintheordinarycourseoftheirbusiness.
Wemayauthorizeunderwriters,dealersoragentstosolicitoffersfromcertaininstitutionswherebytheinstitutionscontractuallyagreetopurchasethesecuritiesfromusonafuturedateataspecificprice.Thistypeofcontractmaybemadeonlywithinstitutionsthatwespecificallyapprove.Suchinstitutionscouldincludebanks,insurancecompanies,pensionfunds,investmentcompaniesandeducationalandcharitableinstitutions.Theunderwriters,dealersoragentswillnotberesponsibleforthevalidityorperformanceofthesecontracts.
Unlessotherwisespecifiedintheapplicableprospectussupplement,wewillnotlistanysecurities(otherthanourcommonstock)onanyexchange.Theunderwriters,ifany,ofthesecuritiesmaymakeamarketinthesecurities.Iftheunderwritersmakeamarketinthesecurities,suchmarketmakingmaybediscontinuedatanytimewithoutnotice.Noassurancecanbegivenastotheliquidityofthetradingmarketforanysecurities.Anyguaranteesofdebtsecuritiesmayonlyberesoldinconjunctionwiththesaleoftheunderlyingdebtsecurities.
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LEGALMATTERS
ThevalidityofthesecuritiesofferedbythisprospectuswillbepasseduponforusbySkadden,Arps,Slate,Meagher&FlomLLP,NewYork,NewYork,andforanyunderwritersoragentsbycounselnamedintheapplicableprospectussupplement.
EXPERTS
Ernst&YoungLLP,independentregisteredpublicaccountingfirm,hasauditedourconsolidatedfinancialstatementsfortheyearendedDecember31,2016,andtheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2016,assetforthintheirreports,whichareincorporatedbyreferenceinthisprospectusandelsewhereintheregistrationstatement.Ourconsolidatedfinancialstatementsare,andourauditedfinancialstatementstobeincludedinsubsequentlyfileddocumentswillbe,incorporatedbyreferenceinthisprospectusinrelianceonthereportsofErnst&YoungLLPpertainingtosuchfinancialstatementsandtheeffectivenessofourinternalcontroloverfinancialreportingasoftherespectivedates(totheextentcoveredbyconsentsfiledwiththeSecuritiesandExchangeCommission),givenontheauthorityofErnst&YoungLLPasexpertsinaccountingandauditing.
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