Pepsi 2012 Annual Report Download - page 96

In 2012, we issued:
• $750million of 0.750% senior notes maturing in March 2015;
• $900 million of 0.700% senior notes maturing in
August 2015;
• $1billion of 1.250% senior notes maturing in August 2017;
• $1.250 billion of 2.750% senior notes maturing in
March 2022;
• £500 million of 2.500% senior notes maturing in
November 2022;
• $750 million of 4.000% senior notes maturing in March
2042; and
• $600 million of 3.600% senior notes maturing in
August 2042.
The net proceeds from the issuances of all the above notes
were used for general corporate purposes, including the
repayment of commercial paper.
In the second quarter of 2012, we extended the termination
date of our four-year unsecured revolving credit agreement
(Four-Year Credit Agreement) from June14, 2015 to June14,
2016 and the termination date of our 364-day unsecured
revolving credit agreement (364-Day Credit Agreement) from
June12, 2012 to June11, 2013. Funds borrowed under
the Four-Year Credit Agreement and the 364-Day Credit
Agreement may be used for general corporate purposes of
PepsiCo and its subsidiaries, including, but not limited to,
working capital, capital investments and acquisitions.
In addition, as of December 29, 2012, our international
debt of $857million related to borrowings from external par-
ties including various lines of credit. These lines of credit are
subject to normal banking terms and conditions and are fully
committed at least to the extent of our borrowings.
Long-Term Contractual Commitments(a)
Payments Due by Period
Total 2013 2014–2015 2016–2017
2018 and
beyond
Long-term debt obligations(b) $ 22,858 $ – $ 6,450 $ 3,105 $ 13,303
Interest on debt obligations(c) 8,772 915 1,477 1,252 5,128
Operating leases 2,061 445 634 362 620
Purchasing commitments(d) 1,738 741 808 135 54
Marketing commitments(d) 2,332 298 605 490 939
$ 37,761 $ 2,399 $ 9,974 $ 5,344 $ 20,044
(a) Based on year-end foreign exchange rates.
(b) Excludes $2,901million related to current maturities of long-term debt, $349million related to the fair value step-up of debt acquired in connection with our acquisitions
of PBG and PAS and $337million related to the increase in carrying value of long-term debt representing the gains on our fair value interest rate swaps.
(c) Interest payments on floating-rate debt are estimated using interest rates effective as of December29, 2012.
(d) Primarily reflects non-cancelable commitments as of December29, 2012.
Most long-term contractual commitments, except for our
long-term debt obligations, are not recorded on our balance
sheet. Operating leases primarily represent building leases.
Non-cancelable purchasing commitments are primarily for
packaging materials, oranges and orange juice, and sugar
and other sweeteners. Non-cancelable marketing commit-
ments are primarily for sports marketing. Bottler funding to
independent bottlers is not reflected in our long-term con-
tractual commitments as it is negotiated on an annual basis.
Accrued liabilities for pension and retiree medical plans are
not reflected in our long-term contractual commitments
because they do not represent expected future cash out-
flows. See Note 7 to our consolidated financial statements
for additional information regarding our pension and retiree
medical obligations.
O-Balance-Sheet Arrangements
It is not our business practice to enter into off-balance-sheet
arrangements, other than in the normal course of business.
See Note8 to our consolidated financial statements regarding
contracts related to certain of our bottlers.
See “Our Liquidity and Capital Resources” in Management’s
Discussion and Analysis for further unaudited information on
our borrowings.
2012 PEPSICO ANNUAL REPORT94
Notes to Consolidated Financial Statements