Pepsi 2013 Annual Report Download - page 118
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statements. As the contracting party, we could be liable to these suppliers in the event of any nonpayment
by our bottlers, but we consider this exposure to be remote.
In addition, our joint ventures with Unilever (under the Lipton brand name) and Starbucks sell finished goods
(ready-to-drink teas and coffees, respectively) to us and our noncontrolled bottling affiliates. Consistent with
accounting for equity method investments, our joint venture revenue is not included in our consolidated net
revenue.
Note 9 — Debt Obligations and Commitments
The following table summarizes the Company’s long-term debt obligations:
2013 2012
Short-term debt obligations
Current maturities of long-term debt $ 2,224 $ 2,901
Commercial paper (0.1% and 0.1%) 2,924 1,101
Other borrowings (12.4% and 7.4%) 158 813
$ 5,306 $ 4,815
Long-term debt obligations
Notes due 2013 (2.3%) $—
$ 2,891
Notes due 2014 (5.3% and 4.4%) 2,219 3,237
Notes due 2015 (1.2% and 1.5%) 4,116 3,300
Notes due 2016 (2.5% and 3.9%) 3,106 1,878
Notes due 2017 (2.0% and 2.0%) 1,258 1,250
Notes due 2018 (4.3% and 4.7%) 3,439 3,511
Notes due 2019-2042 (4.0% and 4.4%) 12,373 10,270
Other, due 2014-2020 (4.4% and 9.3%) 46 108
26,557 26,445
Less: current maturities of long-term debt obligations (2,224) (2,901)
Total $ 24,333 $ 23,544
The interest rates in the above table reflect weighted-average rates at year-end.
In the first quarter of 2013, we issued:
• $625 million of floating rate notes maturing February 2016, which bear interest at a rate equal to
the three-month London Inter-Bank Offered Rate (LIBOR) plus 21 basis points;
• $625 million of 0.700% senior notes maturing in February 2016; and
• $1.25 billion of 2.750% senior notes maturing in March 2023.
In the third quarter of 2013, we issued:
• $850 million of floating rate notes maturing in July 2015 (2015 Notes), which bear interest at a rate
equal to the three-month LIBOR plus 20 basis points; and
• $850 million of 2.250% senior notes maturing in January 2019 (2019 Notes).
The net proceeds from the issuances of the notes in the first quarter of 2013 were used for general corporate
purposes, including the repayment of commercial paper. The net proceeds from the issuances of the notes in
the third quarter of 2013 were primarily used for the redemption of our outstanding 3.75% senior notes
maturing in March 2014 (2014 Notes), as described below, with the remainder used for general corporate
purposes, including the repayment of commercial paper. In the third quarter of 2013, we exercised our option
to redeem all of the above 2014 Notes, using approximately $1 billion of the net proceeds from the 2015
Notes and 2019 Notes issued in the quarter.