Pepsi 2014 Annual Report Download - page 123

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In 2014, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement)
which expires on June 9, 2019. The Five-Year Credit Agreement enables us and our borrowing subsidiaries
to borrow up to $3.7725 billion, subject to customary terms and conditions. We may request that commitments
under this agreement be increased up to $4.5 billion. Additionally, we may, once a year, request renewal of
the agreement for an additional one-year period.
Also, in 2014, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit
Agreement) which expires on June 8, 2015. The 364-Day Credit Agreement enables us and our borrowing
subsidiaries to borrow up to $3.7725 billion, subject to customary terms and conditions. We may request that
commitments under this agreement be increased up to $4.5 billion. We may request renewal of this facility
for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to
one year, which would mature no later than the then effective termination date. The Five-Year Credit
Agreement and the 364-Day Credit Agreement together replaced our $2.925 billion five-year credit agreement
dated as of June 10, 2013 and our $2.925 billion 364-Day credit agreement dated as of June 10, 2013. Funds
borrowed under the Five-Year Credit Agreement and the 364-Day Credit Agreement may be used for general
corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these
agreements. As of December 27, 2014, there were no outstanding borrowings under the Five-Year Credit
Agreement or the 364-Day Credit Agreement.
In addition, as of December 27, 2014, our international debt of $228 million was related to borrowings from
external parties 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)
The following table summarizes our long-term contractual commitments by period:
Payments Due by Period
Total 2015 2016 –
2017
2018 –
2019
2020 and
beyond
Long-term debt obligations(b) $ 23,446 $ — $ 5,108 $ 4,863 $ 13,475
Interest on debt obligations(c) 8,839 873 1,553 1,245 5,168
Operating leases 1,894 403 631 387 473
Purchasing commitments(d) 1,985 693 873 293 126
Marketing commitments(d) 2,178 391 647 525 615
$ 38,342 $ 2,360 $ 8,812 $ 7,313 $ 19,857
(a) Based on year-end foreign exchange rates. We expect to make net cash tax payments of approximately $300 million within the next 12
months, as discussed further in Note 5. Reserves for uncertain tax positions are excluded from the table above as we are unable to reasonably
predict the ultimate amount or timing of any other settlements.
(b) Excludes $4,096 million related to current maturities of long-term debt, $196 million related to the fair value step-up of debt acquired in
connection with our acquisitions of PBG and PAS and $179 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 27, 2014.
(d) Primarily reflects non-cancelable commitments as of December 27, 2014.
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 oranges and orange juice. Non-cancelable marketing commitments are primarily for sports
marketing. Bottler funding to independent bottlers is not reflected in our long-term contractual 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. See Note 7 for additional information regarding our pension and
retiree medical obligations.
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