Coca Cola 2011 Annual Report Download - page 74

borrowings under these backup lines of credit during 2011. These credit facilities are subject to normal banking terms and
conditions. Some of the financial arrangements require compensating balances, none of which is presently significant to our
Company.
Aggregate Contractual Obligations
As of December 31, 2011, the Company’s contractual obligations, including payments due by period, were as follows (in millions):
Payments Due by Period
2017 and
Total 2012 2013–2014 2015–2016 Thereafter
Short-term loans and notes payable:1
Commercial paper borrowings $ 12,135 $ 12,135 $ — $ — $ —
Lines of credit and other short-term borrowings 736 736 — — —
Current maturities of long-term debt22,038 2,038 — — —
Long-term debt, net of current maturities212,941 — 3,107 3,076 6,758
Estimated interest payments35,007 431 784 633 3,159
Accrued income taxes4362 362 — — —
Purchase obligations513,357 9,741 1,611 1,035 970
Marketing obligations64,389 2,600 736 421 632
Lease obligations 1,213 282 387 226 318
Total contractual obligations4$ 52,178 $ 28,325 $ 6,625 $ 5,391 $ 11,837
1Refer to Note 10 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 10 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 14 of Notes to Consolidated Financial Statements for information regarding income taxes. As of December 31, 2011, the noncurrent
portion of our income tax liability, including accrued interest and penalties related to unrecognized tax benefits, was $418 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.
5Purchase 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.
The total accrued benefit liability for pension and other postretirement benefit plans recognized as of December 31, 2011, was
$3,320 million. Refer to Note 13 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, and the 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.
The Pension Protection Act of 2006 (‘‘PPA’’) was enacted in August 2006 and established, among other things, new standards for
funding of U.S. defined benefit pension plans. We generally expect to fund all future contributions with cash flows from operating
activities. Our international pension plans are generally funded in accordance with local laws and income tax regulations.
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