Coca Cola 2013 Annual Report Download - page 69

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Aggregate Contractual Obligations
As of December 31, 2013, the Company’s contractual obligations, including payments due by period, were as follows (in millions):
Payments Due by Period
2019 and
Total 2014 2015–2016 2017–2018 Thereafter
Short-term loans and notes payable:1
Commercial paper borrowings $ 16,853 $ 16,853 $ — $ — $ —
Lines of credit and other short-term borrowings 48 48 — — —
Current maturities of long-term debt21,024 1,024 — — —
Long-term debt, net of current maturities218,722 — 5,225 4,685 8,812
Estimated interest payments35,084 436 858 730 3,060
Accrued income taxes4309 309 — — —
Purchase obligations516,427 10,398 1,502 661 3,866
Marketing obligations65,035 2,467 1,121 650 797
Purchase of minority shares7498 498 — — —
Lease obligations 1,258 300 391 238 329
Total contractual obligations $ 65,258 $ 32,333 $ 9,097 $ 6,964 $ 16,864
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 debt based on the applicable rates and payment dates. For our variable rate debt, we
have assumed the December 31, 2013 rate for all years presented. 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, 2013, the noncurrent
portion of our income tax liability, including accrued interest and penalties related to unrecognized tax benefits, was $327 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.
7Amount represents the Company’s obligation to pay the minority shareowners of our German bottling and distribution operations to purchase their
shares in January 2014 under existing put options. Refer to Note 2 of Notes to Consolidated Financial Statements.
The total accrued benefit liability for pension and other postretirement benefit plans recognized as of December 31, 2013, was
$1,869 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.
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.
As of December 31, 2013, the projected benefit obligation of the U.S. qualified pension plans was $5,895 million, and the fair
value of plan assets was $6,343 million. The projected benefit obligation of all pension plans other than the U.S. qualified
pension plans was $2,950 million, and the fair value of all other pension plan assets was $2,403 million. The majority of this
underfunding is attributable to an international pension plan for certain non-U.S. employees that is unfunded due to tax law
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