Coca Cola 2004 Annual Report Download - page 54

Aggregate Contractual Obligations. As of December 31, 2004, the Company’s contractual obligations,
including payments due by period, are as follows (in millions):
Payments Due by Period
2010 and
Total 2005 2006-2007 2008-2009 Thereafter
Short-term loans and notes payable1:
Commercial paper borrowings $ 4,235 $ 4,235 $ — $ — $ —
Lines of credit and other short-term
borrowings 296 296 — — —
Current maturities of long-term debt21,490 1,490 — — —
Long-term debt21,157 — 64 413 680
Estimated interest payments31,114 99 129 126 760
Marketing and other commitments42,779 899 759 452 669
Purchase commitments55,847 1,567 1,063 695 2,522
Other long-term liabilities:
Liability to CCEAG shareowners61,124 36 1,088 — —
Miscellaneous 32 — 32 — —
Total contractual obligations $ 18,074 $ 8,622 $ 3,135 $ 1,686 $ 4,631
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.
4We expect to fund these marketing and other 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 shareowners. Refer to Note 18 for a
discussion of the present value of our liability to CCEAG shareowners. 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.
In accordance with SFAS No. 87, ‘‘Employers’ Accounting for Pensions,’’ and SFAS No. 106, ‘‘Employers’
Accounting for Postretirement Benefits Other Than Pensions,’’ the total accrued benefit liability for pension and
other postretirement benefit plans recognized as of December 31, 2004 was $1,205 million. Refer to Note 14.
This accrued liability is included in the consolidated balance sheet line item other liabilities. This amount is
impacted by, among other items, funding levels, changes in plan demographics and assumptions, and investment
return on plan assets. Because the accrued liability does not represent expected liquidity needs, we did not
include this amount in the contractual obligations table.
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