Coca Cola 2014 Annual Report Download - page 67

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As of December 31, 2014, the Company had $7,677 million in lines of credit for general corporate purposes. These backup lines of
credit expire at various times from 2015 through 2019. There were no borrowings under these backup lines of credit during 2014.
These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements require compensating
balances, none of which are presently significant to our Company.
Aggregate Contractual Obligations
As of December 31, 2014, the Company’s contractual obligations, including payments due by period, were as follows (in millions):
Payments Due by Period
Total 2015 2016-2017 2018-2019
2020 and
Thereafter
Short-term loans and notes payable:1
Commercial paper borrowings $ 19,010 $ 19,010 $ — $ — $ —
Lines of credit and other short-term borrowings 120
120 — — —
Current maturities of long-term debt23,529 3,529 — — —
Long-term debt, net of current maturities218,708 — 4,085 4,327 10,296
Estimated interest payments35,084 473 908 675 3,028
Accrued income taxes4400 400 — — —
Purchase obligations515,295 9,166 1,028 764 4,337
Marketing obligations64,043 2,143 944 438 518
Lease obligations 1,162 269 344 217 332
Held-for-sale obligations763 28 17 10 8
Total contractual obligations $ 67,414 $ 35,138 $ 7,326 $ 6,431 $ 18,519
1 Refer 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.
2
Refer 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.
3
We 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, 2014 rate for all years presented. We typically expect to settle such interest payments with cash flows from operating activities
and/or short-term borrowings.
4
Refer to Note 14 of Notes to Consolidated Financial Statements for information regarding income taxes. As of December 31, 2014, the noncurrent
portion of our income tax liability, including accrued interest and penalties related to unrecognized tax benefits, was $314 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.
5
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.
6
We expect to fund these marketing obligations with cash flows from operating activities.
7
Represents liabilities of the Company’s North American territories and South African bottling operations that are classified as held for sale.
The total accrued benefit liability for pension and other postretirement benefit plans recognized as of December 31, 2014, was
$2,683 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.