Debt Obligations and Commitments

In the first quarter of 2012, we issued:

•

$750 million of 0.750% senior notes maturing in 2015;

•

$1.250 billion of 2.750% senior notes maturing in 2022; and

•

$750 million of 4.000% senior notes maturing in 2042.

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 24, 2012, we had $1.2 billion of commercial paper outstanding.

Long-Term Contractual Commitments^(a)


	Payments Due by Period
	Total	2012		2013 – 2014		2015 – 2016		2017 and beyond
Long-term debt obligations^(b)	$21,289	$	—	$	4,930	$	4,195	$	12,164
Interest on debt obligations^(c)	8,521		711		1,545		1,223		5,042
Operating leases	1,861		367		632		355		507
Purchasing commitments	3,123		1,113		1,525		422		63
Marketing commitments	2,461		200		570		526		1,165

	$37,255	$	2,391	$	9,202	$	6,721	$	18,941

(a)	Reflects non-cancelable commitments as of March 24, 2012 based on foreign exchange rates in effect on that date and excludes any reserves for uncertain tax positions as we are unable to reasonably predict the ultimate amount or timing of settlement.

(b)

Excludes $3,743 million related to current maturities of long-term debt, $441 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), and $324 million related to the increase in carrying value of long-term debt reflecting the gains on our fair value interest rate swaps.

(c)	Interest payments on floating-rate debt are estimated using interest rates effective as of March 24, 2012.

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, sugar and other sweeteners, 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 Pension and Retiree Medical Benefits for additional information regarding our pension and retiree medical obligations.