Coca Cola 2005 Annual Report Download - page 60

Aggregate Contractual Obligations
As of December 31, 2005, the Company’s contractual obligations, including payments due by period, were
as follows (in millions):
Payments Due by Period
2011 and
Total 2006 2007-2008 2009-2010 Thereafter
Short-term loans and notes payable1:
Commercial paper borrowings $ 3,311 $ 3,311 $ — $ — $ —
Lines of credit and other short-term
borrowings 266 266 — — —
Current maturities of long-term debt228 28 — — —
Long-term debt, net of current maturities21,154 — 99 418 637
Estimated interest payments31,033 70 135 130 698
Marketing and other commitments44,022 1,437 870 611 1,104
Purchase commitments56,173 2,620 930 548 2,075
Liability to CCEAG shareowners61,022 1,022 — — —
Other contractual obligations7448 144 145 83 76
Total contractual obligations $ 17,457 $ 8,898 $ 2,179 $ 1,790 $ 4,590
1Refer to Note 7 of Notes to Consolidated Financial Statements for information regarding short-term
loans and notes payable. Upon payment of commercial paper borrowings, we typically 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 8 of Notes to Consolidated Financial Statements for information regarding long-term
debt. We will consider several alternatives to settle this long-term debt, including the use of cash flows
from operating activities, issuance of commercial paper or issuance of other long-term debt.
3We calculated estimated interest payments for 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 non-term 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 operating activities and/or short-term borrowings.
4We expect to fund these marketing and other commitments with cash flows from operating activities.
We have excluded expected payments for marketing programs 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 operating activities.
6The amount represents the estimated cash to be paid to CCEAG shareowners. Refer to Note 7 of
Notes to Consolidated Financial Statements for a discussion of the present value of our liability to
CCEAG shareowners. We will consider several alternatives to settle this liability, including the use of
cash flows from operating activities, issuance of commercial paper or issuance of other long-term
debt.
7Other contractual obligations consist primarily of future minimum lease payments under our non-
cancelable leasing arrangements, with an initial term in excess of one year.
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, 2005, was $1,221 million. Refer to Note 15 of
Notes to Consolidated Financial Statements. 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
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