

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.

In the third quarter of 2012, we issued:


•	$900 million of 0.700% senior notes maturing in 2015;


•	$1.000 billion of 1.250% senior notes maturing in 2017; and


•	$600 million of 3.600% 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.

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.

As of September 8, 2012, we had $0.9 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)	$	22,989	$	—	$	4,153	$	5,093	$	13,743
Interest on debt obligations^(c)	8,882		300		1,656		1,311		5,615
Operating leases	1,754		142		680		388		544
Purchasing commitments	2,450		394		1,664		331		61
Marketing commitments	2,364		78		596		540		1,150
	$	38,439	$	914	$	8,749	$	7,663	$	21,113


(a)	Reflects non-cancelable commitments as of September 8, 2012 based on foreign exchange rates in effect on the balance sheet 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 $3,054 million related to current maturities of long-term debt, $390 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 $353 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 September 8, 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.