| Debt Obligations And Commitments |
Debt Obligations and Commitments | | | | | | | | | | 2012 |
| | 2011 |
| Short-term debt obligations | | | | Current maturities of long-term debt | $ | 2,901 |
| | $ | 2,549 |
| Commercial paper (0.1% and 0.1%) | 1,101 |
| | 2,973 |
| Other borrowings (7.4% and 7.6%) | 813 |
| | 683 |
| | $ | 4,815 |
| | $ | 6,205 |
| Long-term debt obligations | | | | Notes due 2012 (3.0%) | $ | — |
| | $ | 2,353 |
| Notes due 2013 (2.3%) | 2,891 |
| | 2,841 |
| Notes due 2014 (4.4% and 4.6%) | 3,237 |
| | 3,335 |
| Notes due 2015 (1.5% and 2.3%) | 3,300 |
| | 1,632 |
| Notes due 2016 (3.9%) | 1,878 |
| | 1,876 |
| Notes due 2017 (2.0% and 5.0%) | 1,250 |
| | 258 |
| Notes due 2018-2042 (4.4% and 4.8%) | 13,781 |
| | 10,548 |
| Other, due 2013-2020 (9.3% and 9.9%) | 108 |
| | 274 |
| | 26,445 |
| | 23,117 |
| Less: current maturities of long-term debt obligations | (2,901 | ) | | (2,549 | ) | Total | $ | 23,544 |
| | $ | 20,568 |
|
The interest rates in the above table reflect weighted-average rates at year-end. 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 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) | | | | | | | | | | | | | | | | | | | | | | 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 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 because they do not represent expected future cash outflows. See Note 7 to our consolidated financial statements for additional information regarding our pension and retiree medical obligations. Off-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 of Financial Condition and Results of Operations for further unaudited information on our borrowings. |