Coca Cola 2006 Annual Report Download - page 63

Aggregate Contractual Obligations
As of December 31, 2006, the Company’s contractual obligations, including payments due by period, were
as follows (in millions):
Payments Due by Period
2012 and
Total 2007 2008-2009 2010-2011 Thereafter
Short-term loans and notes payable1:
Commercial paper borrowings $ 1,942 $ 1,942 $ — $ — $ —
Lines of credit and other short-term
borrowings 225 225 — — —
Liability to CCEAG shareowners21,068 1,068 — — —
Current maturities of long-term debt333 33 — — —
Long-term debt, net of current maturities31,314 — 611 576 127
Estimated interest payments4993 80 135 73 705
Purchase obligations58,401 4,815 1,237 636 1,713
Marketing obligations63,925 1,579 832 583 931
Lease obligations 545 141 193 127 84
Total contractual obligations $ 18,446 $ 9,883 $ 3,008 $ 1,995 $ 3,560
1Refer to Note 8 of Notes to Consolidated Financial Statements for information regarding short-term
loans and notes payable. Upon payment of outstanding commercial paper, we typically issue new
commercial paper. 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 a discussion of our liability to
CCEAG shareowners as of December 31, 2006. We paid the amount due to CCEAG shareowners in
January 2007 to discharge our liability.
3Refer to Note 9 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.
4We 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.
5The purchase obligations include agreements to purchase goods or services that are enforceable and
legally binding and that specify all significant terms, including long-term contractual obligations, open
purchase orders, accounts payable and certain accrued liabilities. We expect to fund these obligations
with cash flows from operating activities.
6We expect to fund these marketing obligations with cash flows from operating activities.
In accordance with SFAS No. 87, ‘‘Employers’ Accounting for Pensions,’’ and SFAS No. 106, ‘‘Employers’
Accounting for Postretirement Benefits Other Than Pensions,’’ as amended by SFAS No. 158, ‘‘Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements
No. 87, 88, 106, and 132(R),’’ the total accrued benefit liability for pension and other postretirement benefit
plans recognized as of December 31, 2006, was $1,273 million. Refer to Note 16 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, pension expense funding levels, changes in plan
demographics and assumptions, investment return on plan assets, and the application of SFAS No. 158. 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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