Coca Cola 2015 Annual Report Download - page 69

Company under these guarantees is not probable. As of December 31, 2015, 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 5 of Notes to Consolidated
Financial Statements.
As of December 31, 2015, the Company had $8,340 million in lines of credit for general corporate purposes. These backup lines of credit expire at various
times from 2016 through 2019. There were no borrowings under these backup lines of credit during 2015. 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, 2015, the Company's contractual obligations, including payments due by period, were as follows (in millions):
Payments Due by Period
Total
2016
2017-2018
2019-2020
2021 and
Thereafter
Short-term loans and notes payable:1
Commercial paper borrowings $ 13,035
$ 13,035
$ —
$ —
$ —
Lines of credit and other short-term
borrowings 95
95
—
—
—
Current maturities of long-term debt2
2,679
2,679
—
—
—
Long-term debt, net of current maturities2
28,150
—
6,660
6,232
15,258
Estimated interest payments3
6,011
553
1,022
899
3,537
Accrued income taxes4
331
331
—
—
—
Purchase obligations5
16,365
9,812
1,303
840
4,410
Marketing obligations6
4,260
2,302
914
546
498
Lease obligations 900
212
254
172
262
Held-for-sale obligations7838
675
87
40
36
Total contractual obligations $ 72,664
$ 29,694
$ 10,240
$ 8,729
$ 24,001
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,
2015 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, 2015, the noncurrent portion of our income tax
liability, including accrued interest and penalties related to unrecognized tax benefits, was $267 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, German bottling operations and South African bottling operations that are classified as held for sale.
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