Coca Cola 2003 Annual Report Download - page 48

considered variable interest entities, and we expect to consolidate such variable interest entities effective
March 31, 2004. Refer to Note 1. The difference between consolidation and the equity method impacts certain
financial ratios because of the presentation of the detailed line items reported in the financial statements.
However, consolidated net income for the period and our share-owners’ equity at the end of the period are the
same whether the investment is accounted for under the equity method or is consolidated.
Aggregate Contractual Obligations. As of December 31, 2003, the Company’s contractual obligations,
including payments due by period, are as follows (in millions):
Payments Due by Period
2009 and
Total 2004 2005–2006 2007–2008 Thereafter
Short-term loans and notes payable1:
Commercial paper borrowings $ 2,234 $ 2,234 $ — $ — $ —
Lines of credit and other short-term
borrowings 349 349 — — —
Current maturities of long-term debt2323 323 — — —
Long-term debt22,517 — 1,404 11 1,102
Estimated interest payments31,253 136 162 130 825
Marketing and other commitments43,144 918 865 561 800
Purchase commitments55,979 1,230 1,209 738 2,802
Other long-term liabilities:
Liability to CCEAG share owners61,034 32 1,002 — —
Miscellaneous732 — 32 — —
Total contractual obligations $ 16,865 $ 5,222 $ 4,674 $ 1,440 $ 5,529
1Refer to Note 6 for information regarding short-term loans and notes payable. Upon payment of
commercial paper borrowings, we typically expect to issue new commercial paper borrowings. Lines
of credit and other short-term borrowings are expected to fluctuate depending upon current liquidity
needs, especially at international subsidiaries.
2Refer to Note 7 for information regarding long-term debt. We expect to settle such long-term debt by
several options including cash flows from operations, issuance of commercial paper or issuance of
other long-term debt.
3We calculated estimated interest payments for short-term loans and notes payable and long-term debt
as follows. For fixed-rate debt and term debt, we calculated interest based on the applicable rates and
payment dates. For variable-rate debt and/or nonterm debt, we estimated interest rates and payment
dates based on our determination of the most likely scenarios for each relevant debt instrument. We
typically expect to settle such interest payments with cash flows from operations and short-term
borrowings.
4Refer to Note 11 for information regarding marketing and other commitments. We expect to fund
these commitments with cash flows from operations. We have excluded expected payments for
volume-related programs, such as payments to unconsolidated bottlers or customers that are
generally determined and committed to on an annual basis.
5The purchase commitments include agreements to purchase goods or services that are enforceable
and legally binding and that specify all significant terms, including open purchase orders. We expect
to fund these commitments with cash flows from operations.
6The amount represents the estimated cash to be paid to CCEAG share owners. Refer to Note 18 for
discussion of the present value of our liability to CCEAG share owners. We will consider several
options to settle this liability including cash flows from operations, issuance of commercial paper, or
issuance of other long-term debt.
7The remaining miscellaneous amount represents several individually insignificant items that will
require liquidity in future periods. We generally expect to fund these items with cash flows from
operations.
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