Note 9 — Debt Obligations and Commitments


	2011			2010
*Short-term debt obligations*
Current maturities of long-term debt	$	2,549		$	1,626
Commercial paper (0.1% and 0.2%)		2,973			2,632
Other borrowings (7.6% and 5.3%)		683			640

	$	6,205		$	4,898

*Long-term debt obligations*
Notes due 2011 (4.4%)	$	—		$	1,513
Notes due 2012 (3.0% and 3.1%)		2,353			2,437
Notes due 2013 (2.3% and 3.0%)		2,841			2,110
Notes due 2014 (4.6% and 5.3%)		3,335			2,888
Notes due 2015 (2.3% and 2.6%)		1,632			1,617
Notes due 2016 (3.9% and 5.5%)		1,876			875
Notes due 2017-2040 (4.8% and 4.9%)		10,806			9,953
Other, due 2012-2020 (9.9% and 9.8%)		274			232

		23,117			21,625
Less: current maturities of long-term debt obligations		(2,549	)		(1,626	)

Total	$	20,568		$	19,999

The interest rates in the above table reflect weighted-average rates at year-end.

In the second quarter of 2011, we issued:

•

$750 million of floating rate notes maturing in 2013, which bear interest at a rate equal to the three-month London Inter-Bank Offered Rate (LIBOR) plus 8 basis points; and

•

$1.0 billion of 2.500% senior notes maturing in 2016.

In the third quarter of 2011, we issued:

•

$500 million of 0.800% senior notes maturing in 2014; and

•

$750 million of 3.000% senior notes maturing in 2021.

The net proceeds from the issuances of all the above notes were used for general corporate purposes.

In the third quarter of 2011, we entered into a new four-year unsecured revolving credit agreement (Four-Year Credit Agreement) which expires in June 2015. Effective August 8, 2011, commitments under this agreement were increased to enable us to borrow up to $2.925 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $3.5 billion. Additionally, we may, once a year, request renewal of the agreement for an additional one-year period.

Also, in the third quarter of 2011, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires in June 2012. Effective August 8, 2011, commitments under this agreement were increased to enable us to borrow up to $2.925 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $3.5 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 June 2013.

The Four-Year Credit Agreement and the 364-Day Credit Agreement, together replaced our $2 billion unsecured revolving credit agreement, our $2.575 billion 364-day unsecured revolving credit agreement and our $1.080 billion amended PBG credit facility. Funds borrowed under the Four-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes, including but not limited to repayment of outstanding commercial paper issued by us and our subsidiaries, working capital, capital investments and/or acquisitions.

In the third quarter of 2011, we paid $784 million in a cash tender offer to repurchase $766 million (aggregate principal amount) of certain WBD debt obligations. As a result of this debt repurchase, we recorded a $16 million charge to interest expense (included in merger and integration charges) in the third quarter, primarily representing the premium paid in the tender offer.

In addition, as of December 31, 2011, $848 million of our debt related to borrowings from various lines of credit that are primarily maintained for our international divisions.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		2012		2013 – 2014		2015 – 2016		2017 and beyond
Long-term debt obligations^(b)	$	19,738	$	—	$	6,084	$	3,451	$	10,203
Interest on debt obligations^(c)		7,445		852		1,394		1,091		4,108
Operating leases		1,825		423		598		337		467
Purchasing commitments		2,434		1,113		957		302		62
Marketing commitments		2,519		240		589		535		1,155

	$	33,961	$	2,628	$	9,622	$	5,716	$	15,995

(a)	Reflects non-cancelable commitments as of December 31, 2011 based on year-end foreign exchange rates and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

(b)

Excludes $2,549 million related to current maturities of long-term debt, $470 million related to the fair value step-up of debt acquired in connection with our acquisitions of PBG and PAS and $360 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 31, 2011.

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 sugar and other sweeteners, packaging materials, 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.

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 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.