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2.0.0.10 false Debt Obligations and Commitments 117 - Disclosure - Debt Obligations and Commitments true false false false 1 usd $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 5 Debt Obligations and Commitments 3 pep_DebtAndContractualObligationDisclosureTextBlock pep false na duration string Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit,... false false false false false false false false false false false false 1 false false false false 0 0 <div> Debt Obligations and Commitments   In the first quarter of 2010, we issued $4.25 billion of fixed and floating rate notes. The issuance was comprised of $1.25 billion of floating rate senior unsecured notes maturing in 2011 (the “2011 Floating Rate Notes”), $1.0 billion of 3.10% senior unsecured notes maturing in 2015, $1.0 billion of 4.50% senior unsecured notes maturing in 2020 and $1.0 billion of 5.50% senior unsecured notes maturing in 2040. The 2011 Floating Rate Notes bear interest at a rate equal to the three-month London Inter-Bank Offered Rate (“LIBOR”) plus 3 basis points. A portion of the net proceeds from the issuance of these notes was used to finance our acquisitions of PBG and PAS. The remainder of the net proceeds from the issuance of these notes was designated for general corporate purposes. On February 26, 2010, in connection with the transactions contemplated by the PBG Merger Agreement, Metro, PBG, Bottling Group, LLC and The Bank of New York Mellon (as successor to The Chase Manhattan Bank) (the PBG Trustee) entered into a First Supplemental Indenture (the PBG Supplemental Indenture) to the Indenture dated March 8, 1999 (the PBG Indenture) between PBG, Bottling Group, LLC and the PBG Trustee. Pursuant to the PBG Supplemental Indenture, Metro assumed the due and punctual payment of the principal of (and premium, if any) and interest on the 7.00% Senior Notes due March 1, 2029 (the 7.00% Notes) under the PBG Indenture. As of March 20, 2010, the outstanding principal amount of the 7.00% Notes was approximately $1 billion. The 7.00% Notes are guaranteed by Bottling Group, LLC. On February 26, 2010, in connection with the transactions contemplated by the PAS Merger Agreement, Metro, PAS and The Bank New York Mellon Trust Company, N.A. (as ultimate successor in interest to The First National Bank of Chicago) (the PAS IL Trustee) entered into a Second Supplemental Indenture (the PAS IL Supplemental Indenture) to the Indenture dated January 15, 1993 (the PAS IL Indenture) between PAS and the PAS IL Trustee. Pursuant to the PAS IL Supplemental Indenture, Metro assumed the due and punctual payment of the principal of (and premium, if any) and interest on the 7.625% Notes due 2015 (the 7.625% Notes), the 7.29% Notes due 2026 (the 7.29% Notes), the 7.44% Notes due 2026 (the 7.44% Notes) and the 4.50% Notes due 2013 (the 4.50% Notes) under the PAS IL Indenture. As of March 20, 2010, the outstanding principal amount of the 7.625% Notes was approximately $9 million, the outstanding principal amount of the 7.29% Notes was approximately $100 million, the outstanding principal amount of the 7.44% Notes was approximately $25 million and the outstanding principal amount of the 4.50% Notes was approximately $150 million. On February 26, 2010, also in connection with the transactions contemplated by the PAS Merger Agreement, Metro, PAS and Wells Fargo Bank, National Association (the PAS MN Trustee, formerly known as Wells Fargo Bank Minnesota, National Association) entered into a First Supplemental Indenture (the PAS MN Supplemental Indenture) to the Indenture dated August 15, 2003 (the PAS MN Indenture) between PAS and the PAS MN Trustee. Pursuant to the PAS MN Supplemental Indenture, Metro assumed the due and punctual payment of the principal of (and premium, if any) and interest on the 5.625% Notes due 2011 (the 5.625% Notes), the 5.75% Notes due 2012 (the 5.75% Notes), the 4.375% Notes due 2014 (the 4.375% Notes), the 4.875% Notes due 2015 (the 4.875% Notes), the 5.00% Notes due 2017 (the 5.00% Notes) and the 5.50% Notes due 2035 (the 5.50% Notes) under the PAS MN Indenture. As of March 20, 2010, the outstanding principal amount of the 5.625% Notes was approximately $250 million, the outstanding principal amount of the 5.75% Notes was approximately $300 million, the outstanding principal amount of the 4.375% Notes was approximately $350 million, the outstanding principal amount of the 4.875% Notes was approximately $300 million, the outstanding principal amount of the 5.00% Notes was approximately $250 million and the outstanding principal amount of the 5.50% Notes was approximately $250 million.   As a result of the transactions contemplated by the PBG Merger Agreement, Bottling Group, LLC, which was previously a subsidiary of PBG, became a wholly-owned subsidiary of Metro. Bottling Group, LLC currently has issued and outstanding approximately $1 billion of its 4.625% Senior Notes due 2012 (the 4.625% Notes), $250 million of its 4.125% Senior Notes due 2015, $400 million of its 5.00% Senior Notes due 2013, $800 million of 5.50% Senior Notes due 2016, $1.3 billion of its 6.95% Senior Notes due 2014 (the 6.95% Notes) and $750 million of its 5.125% Senior Notes due 2019. Bottling Group, LLC’s 4.625% Notes and 6.95% Notes are guaranteed by PepsiCo. As of March 20, 2010, the long-term debt acquired from our anchor bottlers (including debt previously issued by PBG, Bottling Group, LLC and PAS) in connection with our acquisitions of PBG and PAS has a total face value of approximately $7.5 billion (fair value of $8.4 billion) with a weighted-average stated interest rate of 5.7%. This acquired debt has a remaining weighted-average maturity of 7.5 years. See also Acquisitions of PBG and PAS. As previously disclosed, we entered into amendments to PBG’s revolving credit facility (the Amended PBG Credit Facility) and PAS’s revolving credit facility (the Amended PAS Credit Facility) and these amendments became effective on February 26, 2010. Under the Amended PBG Credit Facility, Metro is able to borrow up to $1,080 million from time to time. Borrowings under the Amended PBG Credit Facility, which expires in October 2012, are guaranteed by PepsiCo. The Amended PBG Credit Facility was unused as of March 20, 2010. Under the Amended PAS Credit Facility, Metro is able to borrow up to $540 million from time to time. Borrowings under the Amended PAS Credit Facility, which expires in June 2011, are guaranteed by PepsiCo. The Amended PAS Credit Facility was unused as of March 20, 2010. As of March 20, 2010, short-term obligations totaled $2.0 billion, of which $1.2 billion was comprised of commercial paper. Long-Term Contractual Commitments(a)   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="61%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center">Payments Due by Period</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">Total</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2011 – 2012</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2013 – 2014</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2015 and beyond</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Long-term debt obligations(b) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">19,884</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">–</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,080</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,540</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">11,264</td> </tr> <tr> <td valign="top"> Interest on debt obligations(c) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,740</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">782</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,421</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,031</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,506</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Operating leases </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,413</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">354</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">435</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">246</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">378</td> </tr> <tr> <td valign="top"> Purchasing commitments </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,965</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">733</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,342</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">645</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">245</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Marketing commitments </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">790</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">186</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">340</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">92</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">172</td> </tr> <tr> <td valign="top"> Other commitments </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">–</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">–</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">–</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">31,803</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,055</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7,629</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">6,554</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">15,565</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="5%" align="justify"> (a) </td> <td valign="top" align="left"> Reflects non-cancelable commitments as of March 20, 2010 based on foreign exchange rates in effect at that time and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement. </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="5%" align="justify"> (b) </td> <td valign="top" align="left"> Excludes current maturities of long-term debt obligations of $115 million. Includes $156 million of principal and accrued interest related to our zero coupon notes. </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="5%" align="justify"> (c) </td> <td valign="top" align="left"> Interest payments on floating-rate debt are estimated using interest rates effective as of March 20, 2010. </td> </tr> </table>   As of March 20, 2010, our total long-term contractual commitments totaled $31.8 billion, an increase of $18.1 billion from December 26, 2009. This increase is substantially due to the assumption of PBG’s and PAS’s outstanding debt, the issuance of new debt to finance our acquisitions of PBG and PAS, and the associated interest on debt. Most long-term contractual commitments, except for our long-term debt obligations, are not recorded on our balance sheet. Non-cancelable operating leases primarily represent building leases. Non-cancelable purchasing commitments are primarily for packaging materials, oranges and orange juice and cooking oil. Non-cancelable marketing commitments are primarily for sports marketing. See Pension and Retiree Medical Benefits regarding our pension and retiree medical obligations. </div> Debt Obligations and Commitments   In the first quarter of 2010, we issued $4.25 billion of fixed and floating rate notes. The issuance was comprised of false false false Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds (including capital and operating leases), and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants, and contractual obligation disclosures, as applicable. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true