Debt Obligations and Commitments

In the first quarter of 2013, we issued:


•	$625 million of floating rate notes maturing in 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


•	$1.250 billion of 2.750% senior notes maturing in March 2023.

The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper.

As of March 23, 2013, we had $1.5 billion of commercial paper outstanding.

Long-Term Contractual Commitments ^(a)



	Payments Due by Period
	Total		2013		2014 – 2015		2016 – 2017		2018 and beyond
Long-term debt obligations ^(b)	$	22,658	$	—	$	3,792	$	4,355	$	14,511
Interest on debt obligations ^(c)	8,917		730		1,560		1,321		5,306
Operating leases	2,047		371		666		379		631
Purchasing commitments ^(d)	2,586		974		1,190		204		218
Marketing commitments ^(d)	2,297		221		637		491		948
	$	38,505	$	2,296	$	7,845	$	6,750	$	21,614


(a)	Based on quarter-end foreign exchange rates.


(b)	Excludes $4,425 million related to current maturities of long-term debt, $299 million related to the increase in carrying value of long-term debt reflecting the gains on our fair value interest rate swaps, and $268 million related to the fair value step-up of debt acquired in connection with our acquisitions of The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS) in February 2010.


(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of March 23, 2013.


(d)	Primarily reflects non-cancelable commitments as of March 23, 2013.

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 and 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 because they do not represent expected future cash outflows. See Note 7 for additional information regarding our pension and retiree medical obligations.