Pepsi 2015 Annual Report Download - page 125
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Table of Contents
108
Note 8 — Related Party Transactions
Our related party transactions in 2015, 2014 and 2013 were not material.
We coordinate, on an aggregate basis, the contract negotiations of raw material requirements, including
sweeteners, aluminum cans and plastic bottles and closures for us and certain of our independent bottlers.
Once we have negotiated the contracts, the bottlers order and take delivery directly from the supplier and
pay the suppliers directly. Consequently, these transactions are not reflected in our consolidated financial
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) and concentrate 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.
Certain members of our Board of Directors also serve on the boards of certain vendors and customers. These
Board members do not participate in our vendor selection and negotiations nor in our customer negotiations.
Our transactions with these vendors and customers are in the normal course of business and are consistent
with terms negotiated with other vendors and customers. In addition, certain of our employees serve on the
boards of Pepsi Bottling Ventures LLC and other affiliated companies of PepsiCo and do not receive
incremental compensation for such services.
Note 9 — Debt Obligations and Commitments
The following table summarizes the Company’s debt obligations:
2015 2014
Short-term debt obligations
Current maturities of long-term debt $ 3,109 $ 4,096
Commercial paper (0.3% and 0.1%) 770 746
Other borrowings (10.0% and 17.7%) 192 234
$ 4,071 $ 5,076
Long-term debt obligations
Notes due 2015 (1.4%) $—
$ 4,093
Notes due 2016 (2.6% and 2.6%) 3,087 3,099
Notes due 2017 (1.2% and 1.6%) 4,392 2,004
Notes due 2018 (3.6% and 4.4%) 4,122 3,410
Notes due 2019 (3.7% and 3.7%) 1,627 1,631
Notes due 2020 (2.4% and 3.8%) 3,830 1,983
Notes due 2021-2046 (3.9% and 4.0%) 15,228 11,657
Other, due 2016-2021 (4.3% and 4.4%) 36 40
32,322 27,917
Less: current maturities of long-term debt obligations (3,109) (4,096)
Total $ 29,213 $ 23,821
The interest rates in the above table reflect weighted-average rates at year-end.