Coca Cola 2008 Annual Report Download - page 69

Aggregate Contractual Obligations
As of December 31, 2008, the Company’s contractual obligations, including payments due by period, were
as follows (in millions):
Payments Due by Period
2014 and
Total 2009 2010-2011 2012-2013 Thereafter
Short-term loans and notes
payable1:
Commercial paper borrowings $ 5,389 $ 5,389 $ — $ — $ —
Lines of credit and other
short-term borrowings 677 677 — — —
Current maturities of long-term
debt2465 465 — — —
Long-term debt, net of current
maturities22,781 — 620 265 1,896
Estimated interest payments31,707 163 273 219 1,052
Accrued income taxes4252 252 — — —
Purchase obligations510,737 7,041 1,221 517 1,958
Marketing obligations64,464 1,910 1,061 658 835
Lease obligations 631 174 231 108 118
Total contractual obligations4$ 27,103 $ 16,071 $ 3,406 $ 1,767 $ 5,859
1Refer to Note 7 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 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 our long-term fixed-rate debt based on the applicable
rates and payment dates. We typically expect to settle such interest payments with cash flows from
operating activities and/or short-term borrowings.
4Refer to Note 17 of Notes to Consolidated Financial Statements for information regarding income
taxes. As of December 31, 2008, the noncurrent portion of our income tax liability, including accrued
interest and penalties related to unrecognized tax benefits, was approximately $447 million, which was
not included in the total above. At this time, the settlement period for the noncurrent portion of our
income tax liability cannot be determined. In addition, any payments related to unrecognized tax
benefits would be partially offset by reductions in payments in other jurisdictions.
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, 2008 was approximately $1,620 million. Refer to Note 16 of Notes to
Consolidated Financial Statements. This amount is impacted by, among other items, pension expense, funding
levels, plan amendments, 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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