Coca Cola 2007 Annual Report Download - page 62

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and 2005, respectively. The 2007 dividend represented a 10 percent increase from 2006, and the 2006 dividend
represented a 10 percent increase from 2005.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Off-Balance Sheet Arrangements
In accordance with the definition under SEC rules, the following qualify as off-balance sheet arrangements:
• any obligation under certain guarantee contracts;
• a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that
serves as credit, liquidity or market risk support to that entity for such assets;
• any obligation under certain derivative instruments; and
• any obligation arising out of a material variable interest held by the registrant in an unconsolidated entity that
provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing,
hedging or research and development services with the registrant.
As of December 31, 2007, we were contingently liable for guarantees of indebtedness owed by third parties in the
amount of approximately $267 million. These guarantees primarily are related to third-party customers, bottlers and
vendors and have arisen through the normal course of business. These guarantees have various terms, and none of these
guarantees was individually significant. The amount represents the maximum potential future payments that we could
be required to make under the guarantees; however, we do not consider it probable that we will be required to satisfy
these guarantees. Management concluded that the likelihood of any material amounts being paid by our Company
under these guarantees is not probable. As of December 31, 2007, we were not directly liable for the debt of any
unconsolidated entity, and we did not have any retained or contingent interest in assets as defined above.
Our Company recognizes all derivatives as either assets or liabilities at fair value in our consolidated balance
sheets. Refer to Note 12 of Notes to Consolidated Financial Statements.
Aggregate Contractual Obligations
As of December 31, 2007, the Company’s contractual obligations, including payments due by period, were as
follows (in millions):
Payments Due by Period
Total 2008 2009-2010 2011-2012 2013 and
Thereafter
Short-term loans and notes payable1:
Commercial paper borrowings $ 5,420 $ 5,420 $ — $ — $ —
Lines of credit and other short-term
borrowings 499 499———
Current maturities of long-term debt2133133———
Long-term debt, net of current
maturities23,277 — 649 749 1,879
Estimated interest payments31,955 197 339 265 1,154
Accrued income taxes4258258———
Purchase obligations513,445 6,891 2,247 815 3,492
Marketing obligations64,219 1,708 868 591 1,052
Lease obligations 601 171 203 112 115
Total contractual obligations4$ 29,807 $ 15,277 $ 4,306 $ 2,532 $ 7,692
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.
60