-
Reported net revenue declined 5% and organic revenue grew 3%
-
Global price/mix of 3% reflecting positive pricing and packaging
initiatives across key markets
-
Reported EPS was $0.33 and comparable EPS was $0.51
-
Global volume grew 3%
-
Year-to-date cash from operations increased 5% to $8.4 billion,
despite significant foreign currency headwinds
-
Expect full-year comparable currency neutral EPS growth of 5%, in
line with the range laid out at the beginning of the year
The Coca-Cola Company today reported third quarter 2015 operating
results. "Our third quarter results were in line with our expectations
and reflect the continued execution of our strategic initiatives to
restore momentum, which are beginning to take hold across our global
business," said Muhtar Kent, Chairman and Chief Executive Officer of The
Coca-Cola Company. "By aggressively driving productivity and
streamlining the business, we are funding investments to accelerate
growth. We have aligned and incented the organization against a clear
revenue segmentation strategy. Finally, we have announced significant
steps that evolve and strengthen our unparalleled global distribution
system, including the planned creation of Coca-Cola Beverages Africa,
Coca-Cola European Partners, and most recently in the United States, the
National Product Supply System. Despite a continued challenging macro
environment, all of us at The Coca-Cola Company remain confident in our
strategies and committed to the creation of long-term shareowner value."
THIRD QUARTER 2015 OPERATING REVIEW
TOTAL COMPANY
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
3
|
|
|
2
|
Sparkling Beverages
|
|
|
2
|
|
|
1
|
Still Beverages
|
|
|
6
|
|
|
4
|
Concentrate Sales/Reported Volume
|
|
|
0
|
|
|
3
|
Price/Mix
|
|
|
3
|
|
|
2
|
Currency
|
|
|
(8)
|
|
|
(7)
|
Acquisitions & Divestitures
|
|
|
0
|
|
|
0
|
Reported Net Revenues
|
|
|
(5)
|
|
|
(2)
|
Organic Revenues *
|
|
|
3
|
|
|
5
|
Reported Income Before Taxes
|
|
|
(35)
|
|
|
(2)
|
Comparable CN Income Before Taxes (Structurally Adjusted) *
|
|
|
8
|
|
|
8
|
* Organic revenue and comparable currency neutral (CN) income
before taxes (structurally adjusted) are non-GAAP financial measures.
Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial
Measures schedule.
-
We had positive organic revenue growth in each of our operating groups
except for Asia Pacific in the quarter, and we gained global value
share in nonalcoholic ready-to-drink (NARTD) beverages. Organic
revenue growth was driven by 3 points of positive price/mix and
reflects positive pricing and packaging initiatives across many key
markets. Price/mix also benefited from geographic mix due to the
strong performance of certain Company-owned bottling operations within
our Bottling Investments group. After adjusting for the six additional
days in the first quarter, concentrate sales growth trailed unit case
volume growth year to date. We expect concentrate sales and unit case
sales to be generally in line for the full year.
-
We gained global value share in sparkling beverages in the quarter.
Global sparkling beverage volume growth was led by 1% growth in
Trademark Coca-Cola which included 1% growth in brand Coca-Cola and 8%
growth in Coke Zero, partially offset by an 8% decline in Diet Coke.
Low single-digit growth in Sprite and Fanta also contributed to global
sparkling beverage volume growth in the quarter.
-
We gained global value share in still beverages and gained value and
volume share in the juice and juice drinks and ready-to-drink tea
categories in the quarter. Global still beverage volume growth
reflects 4% growth in ready-to-drink tea, 5% growth in sports drinks
and 11% growth in packaged water.
-
Comparable currency neutral income before taxes (structurally
adjusted) outpaced organic revenue growth in the quarter primarily due
to gross margin expansion and the impact of our ongoing productivity
initiatives, partially offset by increased marketing investments, a
decrease in net interest income and lower equity income.
-
The reported effective tax rate and the underlying annual effective
tax rate in the quarter were 15.8% and 22.5%, respectively. The
variance between the reported rate and the underlying rate was due to
the tax effect of various items impacting comparability, separately
disclosed in the Reconciliation of GAAP and Non-GAAP Financial
Measures schedule.
-
Reported EPS was $0.33 and comparable EPS was $0.51 in the quarter.
Items impacting comparability decreased reported EPS by a net $0.18
and were primarily related to noncash charges related to refranchising
certain territories in North America and costs associated with our
previously announced productivity program.
-
Fluctuations in foreign currency exchange rates resulted in a 12 point
headwind on comparable operating income, income before taxes and EPS
in the quarter.
-
Year-to-date cash from operations was $8.4 billion, up 5%. The
increase was primarily due to efficient management of working capital
and the impact of six additional days in the first quarter, partially
offset by fluctuations in foreign currency exchange rates and the
impact of refranchised territories in North America.
-
Year-to-date net share repurchases totaled $1.3 billion.
EURASIA AND AFRICA
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
4
|
|
|
4
|
Sparkling Beverages
|
|
|
3
|
|
|
3
|
Still Beverages
|
|
|
6
|
|
|
5
|
Concentrate Sales
|
|
|
4
|
|
|
4
|
Price/Mix
|
|
|
(2)
|
|
|
0
|
Currency
|
|
|
(15)
|
|
|
(12)
|
Acquisitions & Divestitures
|
|
|
(2)
|
|
|
(1)
|
Reported Net Revenues
|
|
|
(15)
|
|
|
(9)
|
Organic Revenues *
|
|
|
2
|
|
|
4
|
Reported Income Before Taxes
|
|
|
(22)
|
|
|
(12)
|
Comparable CN Income Before Taxes *
|
|
|
(8)
|
|
|
2
|
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue growth in the quarter was driven by concentrate sales
growth, partially offset by unfavorable geographic mix. Acquisitions
and divestitures reflect the unfavorable impact from the brand
transfer agreement associated with the closing of the transaction with
Monster Beverage Corporation. After adjusting for the additional
selling days in the first quarter and unit case volume related to
joint ventures that do not have equivalent concentrate sales,
concentrate sales growth trailed unit case volume growth year to date
primarily due to timing of shipments in the prior year. We expect
concentrate sales and unit case sales to be generally in line for the
full year.
-
Comparable currency neutral income before taxes trailed organic
revenue growth in the quarter primarily due to lower equity income
associated with our joint ventures in the juice and juice drinks
category in the region and a low single-digit unfavorable impact from
the closing of the transaction with Monster Beverage Corporation.
-
We gained value and volume share in total NARTD beverages, sparkling
beverages and still beverages in the quarter. Sparkling beverage
volume growth was driven by 4% growth in Trademark Coca-Cola and 7%
growth in Sprite. Still beverage volume growth was primarily driven by
6% growth in juice and juice drinks and 8% growth in packaged water.
Unit case volume growth was driven by 11% growth in our Central, East
& West Africa business unit and 7% growth in our Middle East & North
Africa business unit. Growth in these markets was partially offset by
a high single-digit decline in Russia.
EUROPE
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
4
|
|
|
1
|
Sparkling Beverages
|
|
|
2
|
|
|
0
|
Still Beverages
|
|
|
12
|
|
|
8
|
Concentrate Sales
|
|
|
2
|
|
|
3
|
Price/Mix
|
|
|
0
|
|
|
0
|
Currency
|
|
|
(8)
|
|
|
(10)
|
Acquisitions & Divestitures
|
|
|
(1)
|
|
|
0
|
Reported Net Revenues
|
|
|
(7)
|
|
|
(7)
|
Organic Revenues *
|
|
|
3
|
|
|
3
|
Reported Income Before Taxes
|
|
|
(4)
|
|
|
(4)
|
Comparable CN Income Before Taxes *
|
|
|
(2)
|
|
|
0
|
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue growth in the quarter was driven by concentrate sales
growth, including strong growth in our expanding still beverage
portfolio. Positive price/mix across certain key markets was offset by
unfavorable geographic mix primarily due to strong concentrate sales
growth in our Central and Southern Europe business unit. Acquisitions
and divestitures reflect the unfavorable impact from the brand
transfer agreement associated with the closing of the transaction with
Monster Beverage Corporation. After adjusting for the additional
selling days in the first quarter, concentrate sales growth and unit
case volume growth were generally in line year to date.
-
Comparable currency neutral income before taxes trailed organic
revenue growth in the quarter primarily due to increased marketing
investments and a low single-digit unfavorable impact from the closing
of the transaction with Monster Beverage Corporation, partially offset
by the impact of ongoing productivity initiatives.
-
Sparkling beverage volume growth was driven by 9% growth in Coke Zero
and 6% growth in Fanta, partially offset by a 6% decline in Diet
Coke/Coke Light. Still beverage volume growth was driven by the
continued expansion of our still beverage portfolio and included
double-digit growth in packaged water, sports drinks and the innocent
brand. We gained value and volume share in still beverages and the
packaged water category. We also gained value share in the sports
drinks and juice and juice drinks categories.
LATIN AMERICA
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
2
|
|
|
1
|
Sparkling Beverages
|
|
|
1
|
|
|
0
|
Still Beverages
|
|
|
6
|
|
|
4
|
Concentrate Sales
|
|
|
1
|
|
|
3
|
Price/Mix
|
|
|
13
|
|
|
9
|
Currency
|
|
|
(28)
|
|
|
(22)
|
Acquisitions & Divestitures
|
|
|
0
|
|
|
0
|
Reported Net Revenues
|
|
|
(14)
|
|
|
(10)
|
Organic Revenues *
|
|
|
14
|
|
|
12
|
Reported Income Before Taxes
|
|
|
(18)
|
|
|
(16)
|
Comparable CN Income Before Taxes *
|
|
|
15
|
|
|
11
|
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue growth in the quarter reflects positive price/mix in
each of our four business units, particularly in the higher
inflationary markets within our South Latin business unit. After
adjusting for the additional selling days in the first quarter,
concentrate sales growth and unit case volume growth were generally in
line year to date.
-
Comparable currency neutral income before taxes modestly outpaced
organic revenue growth in the quarter as positive operating leverage
driven by organic revenue growth was mostly offset by increased
marketing investments.
-
We gained value and volume share in sparkling beverages and still
beverages (excluding packaged water) in the quarter. Still beverage
volume growth included 8% growth in juice and juice drinks and
double-digit growth in sports drinks. Unit case volume growth was
driven by 4% growth in both Mexico and our Latin Center business unit
and 3% growth in our South Latin business unit. Growth in these
markets was partially offset by a 4% decline in Brazil.
NORTH AMERICA
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
1
|
|
|
1
|
Sparkling Beverages
|
|
|
(1)
|
|
|
(1)
|
Still Beverages
|
|
|
7
|
|
|
4
|
Concentrate Sales
|
|
|
0
|
|
|
2
|
Price/Mix
|
|
|
3
|
|
|
3
|
Currency
|
|
|
(1)
|
|
|
(1)
|
Acquisitions & Divestitures
|
|
|
(1)
|
|
|
(1)
|
Reported Net Revenues
|
|
|
1
|
|
|
3
|
Organic Revenues *
|
|
|
3
|
|
|
6
|
Reported Income Before Taxes
|
|
|
NM
|
|
|
(22)
|
Comparable CN Income Before Taxes *
|
|
|
4
|
|
|
11
|
NM: Calculation is not meaningful.
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue growth in the quarter was driven by positive
price/mix. Acquisitions and divestitures primarily reflect the
unfavorable impact of refranchised territories, partially offset by
the benefit of our expanded distribution of Monster beverage products
in North America. The expanded distribution contributed 1 point of
unit case volume growth in both the quarter and year to date. After
adjusting for the additional selling days in the first quarter and the
impact of acquired volume, concentrate sales growth and unit case
volume growth were in line year to date.
-
Comparable currency neutral income before taxes outpaced organic
revenue growth in the quarter primarily due to lower input costs and
the impact of our ongoing productivity initiatives, partially offset
by increased marketing investments and a high single-digit unfavorable
impact from structural changes. Structural changes included 5 points
related to refranchised territories, as well as a net unfavorable
impact from the brand transfer agreement associated with the closing
of the transaction with Monster Beverage Corporation and expanded
distribution of Monster beverage products.
-
We gained value share in total NARTD beverages for the 22nd
consecutive quarter driven by an increase in both the quality and
quantity of our marketing investments and our continued rational
approach to pricing and disciplined price/pack strategies.
ASIA PACIFIC
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
4
|
|
|
3
|
Sparkling Beverages
|
|
|
3
|
|
|
3
|
Still Beverages
|
|
|
6
|
|
|
3
|
Concentrate Sales
|
|
|
(2)
|
|
|
3
|
Price/Mix
|
|
|
1
|
|
|
(1)
|
Currency
|
|
|
(9)
|
|
|
(9)
|
Acquisitions & Divestitures
|
|
|
(1)
|
|
|
0
|
Reported Net Revenues
|
|
|
(11)
|
|
|
(7)
|
Organic Revenues *
|
|
|
(1)
|
|
|
2
|
Reported Income Before Taxes
|
|
|
(11)
|
|
|
(8)
|
Comparable CN Income Before Taxes *
|
|
|
(2)
|
|
|
0
|
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue declined in the quarter driven by a decrease in
concentrate sales, partially offset by positive price/mix.
Acquisitions and divestitures primarily reflect the unfavorable impact
from the brand transfer agreement associated with the closing of the
transaction with Monster Beverage Corporation. After adjusting for the
additional selling days in the first quarter, concentrate sales growth
trailed unit case volume growth year to date primarily due to timing
of shipments in the prior year. We expect concentrate sales and unit
case sales to be generally in line for the full year.
-
Comparable currency neutral income before taxes trailed organic
revenue growth in the quarter primarily due to a low single-digit
unfavorable impact from the closing of the transaction with Monster
Beverage Corporation, partially offset by the efficient management of
operating expenses.
-
Unit case volume growth in the quarter reflected 5% growth in China
and 4% growth in India, partially offset by a 2% decline in Japan.
China's performance included double-digit growth in Trademark
Coca-Cola and we gained value and volume share in sparkling beverages.
BOTTLING INVESTMENTS
|
|
|
Percent Change
|
|
|
|
Third Quarter
|
|
|
YTD
|
Unit Case Volume
|
|
|
11
|
|
|
7
|
Reported Volume
|
|
|
8
|
|
|
7
|
Price/Mix
|
|
|
(5)
|
|
|
(4)
|
Currency
|
|
|
(11)
|
|
|
(9)
|
Acquisitions & Divestitures
|
|
|
4
|
|
|
2
|
Reported Net Revenues
|
|
|
(4)
|
|
|
(4)
|
Organic Revenues *
|
|
|
3
|
|
|
4
|
Reported Income Before Taxes
|
|
|
(27)
|
|
|
(21)
|
Comparable CN Income Before Taxes *
|
|
|
15
|
|
|
15
|
* Organic revenue and comparable currency neutral (CN) income
before taxes are non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
Organic revenue growth in the quarter was driven by reported volume
growth, partially offset by unfavorable price/mix primarily
attributable to geographic, channel and product mix.
-
Comparable currency neutral income before taxes outpaced organic
revenue growth in the quarter primarily due to the continued strong
performance of our Company-owned bottling operations in several
markets including Germany, China and Vietnam.
2015 OUTLOOK
-
We estimate that the net impact of structural items on full-year 2015
results will be a 1 point headwind on both net revenues and income
before taxes.
-
We expect fluctuations in foreign currency exchange rates to have an
unfavorable impact on our comparable results in 2015. Based on current
spot rates, our existing hedge positions, and the cycling of our prior
year rates, we estimate that currency will be an approximate 7 point
headwind on net revenues, an 11 point headwind on operating income and
an 8 point headwind on income before taxes for the full year. For the
fourth quarter, we estimate that currency will be an approximate 6
point headwind on net revenues, a 12 point headwind on operating
income and a 10 point headwind on income before taxes.
-
The underlying effective annual tax rate on operations for 2015 is
expected to be 22.5%.
-
We expect full-year 2015 net share repurchases of $2.0 to $2.5 billion.
-
We expect full-year 2015 comparable currency neutral EPS growth of 5%,
in line with the range we laid out at the beginning of the year.
ITEMS IMPACTING COMPARABILITY
-
For details on items impacting comparability in the quarter, refer to
the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
NOTES
-
All references to growth rate percentages and share compare the
results of the period to those of the prior year comparable period.
-
"Comparable currency neutral income before taxes" is a non-GAAP
financial measure that excludes or otherwise adjusts for items
impacting comparability and the impact of changes in foreign currency
exchange rates. For details on these adjustments, refer to the
Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
-
"Comparable currency neutral income before taxes (structurally
adjusted)" is a non-GAAP financial measure that excludes or otherwise
adjusts for items impacting comparability, the impact of changes in
foreign currency exchange rates and the impact of structural items.
For details on these adjustments, refer to the Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
-
"Concentrate sales" represents the amount of concentrates, syrups,
beverage bases and powders sold by, or used in finished beverages sold
by, the Company to its bottling partners or other customers.
-
"Concentrate sales/reported volume" represents the percent change in
net revenues attributable to the increase (decrease) in concentrate
sales volume for our geographic operating segments (expressed in
equivalent unit cases) after considering the impact of structural
changes. For our Bottling Investments operating segment, this
represents the percent change in net revenues attributable to the
increase (decrease) in unit case volume after considering the impact
of structural changes. Our Bottling Investments operating segment data
reflects unit case volume growth for consolidated bottlers only and is
computed on a reported basis.
-
"Organic revenue" is a non-GAAP financial measure that excludes or
otherwise adjusts for the impact of changes in foreign currency
exchange rates and acquisitions and divestitures, as applicable. For
details on these adjustments, refer to the Reconciliation of GAAP and
Non-GAAP Financial Measures schedule.
-
"Sparkling beverages" means NARTD beverages with carbonation,
including carbonated energy drinks and waters.
-
"Still beverages" means nonalcoholic beverages without carbonation,
including noncarbonated waters, flavored waters and enhanced waters,
juices and juice drinks, teas, coffees, sports drinks and
noncarbonated energy drinks.
-
All references to volume and volume percentage changes indicate unit
case volume, unless otherwise noted. All volume percentage changes are
computed based on average daily sales, unless otherwise noted. "Unit
case" means a unit of measurement equal to 24 eight ounce servings of
finished beverage. "Unit case volume" means the number of unit cases
(or unit case equivalents) of Company beverages directly or indirectly
sold by the Company and its bottling partners to customers.
-
First quarter 2015 financial results were impacted by six additional
days, and fourth quarter 2015 financial results will be impacted by
six fewer days. Unit case volume results for the quarters are not
impacted by the variance in selling days due to the average daily
sales computation referenced above.
-
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States (GAAP).
However, management believes that certain non- GAAP financial measures
provide users with additional meaningful financial information that
should be considered when assessing the Company’s ongoing performance.
Management also uses these non-GAAP financial measures in making
financial, operating and planning decisions and in evaluating the
Company's performance. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP. The Company’s non-GAAP
financial information does not represent a comprehensive basis of
accounting.
CONFERENCE CALL
We are hosting a conference call with investors and analysts to discuss
third quarter 2015 results today, Oct. 21, 2015 at 9:30 a.m. EDT. We
invite investors to listen to a live audiocast of the conference call on
the Company’s website, http://www.coca-colacompany.com
in the "Investors" section. A replay in downloadable MP3 format and a
transcript of the call will also be available within 24 hours after the
audiocast on the Company’s website. Further, the "Investors" section of
the website includes a reconciliation of non-GAAP financial measures,
which may be used periodically by management when discussing financial
results with investors and analysts, to the Company’s results as
reported under GAAP.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Condensed Consolidated Statements of
Income
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
October 2,
|
|
|
September 26,
|
|
|
%
|
|
|
|
2015
|
|
|
2014
|
|
|
Change1
|
Net Operating Revenues
|
|
|
$
|
11,427
|
|
|
|
$
|
11,976
|
|
|
|
(5
|
)
|
Cost of goods sold
|
|
|
4,577
|
|
|
|
4,630
|
|
|
|
(1
|
)
|
Gross Profit
|
|
|
6,850
|
|
|
|
7,346
|
|
|
|
(7
|
)
|
Selling, general and administrative expenses
|
|
|
4,207
|
|
|
|
4,507
|
|
|
|
(7
|
)
|
Other operating charges
|
|
|
264
|
|
|
|
128
|
|
|
|
107
|
|
Operating Income
|
|
|
2,379
|
|
|
|
2,711
|
|
|
|
(12
|
)
|
Interest income
|
|
|
155
|
|
|
|
169
|
|
|
|
(8
|
)
|
Interest expense
|
|
|
138
|
|
|
|
113
|
|
|
|
22
|
|
Equity income (loss) — net
|
|
|
200
|
|
|
|
205
|
|
|
|
(2
|
)
|
Other income (loss) — net
|
|
|
(871
|
)
|
|
|
(312
|
)
|
|
|
(180
|
)
|
Income Before Income Taxes
|
|
|
1,725
|
|
|
|
2,660
|
|
|
|
(35
|
)
|
Income taxes
|
|
|
272
|
|
|
|
538
|
|
|
|
(49
|
)
|
Consolidated Net Income
|
|
|
1,453
|
|
|
|
2,122
|
|
|
|
(32
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
4
|
|
|
|
8
|
|
|
|
(50
|
)
|
Net Income Attributable to Shareowners of The Coca-Cola Company
|
|
|
$
|
1,449
|
|
|
|
$
|
2,114
|
|
|
|
(31
|
)
|
Diluted Net Income Per Share2
|
|
|
$
|
0.33
|
|
|
|
$
|
0.48
|
|
|
|
(31
|
)
|
Average Shares Outstanding — Diluted2
|
|
|
4,399
|
|
|
|
4,445
|
|
|
|
|
1
|
|
Certain growth rates may not recalculate using the rounded dollar
amounts provided.
|
2
|
|
For the three months ended October 2, 2015 and September 26, 2014,
basic net income per share was $0.33 for 2015 and $0.48 for 2014
based on average shares outstanding — basic of 4,349 million for
2015 and 4,383 million for 2014. Basic net income per share and
diluted net income per share are calculated based on net income
attributable to shareowners of The Coca-Cola Company.
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Condensed Consolidated Statements of
Income
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
October 2,
|
|
|
September 26,
|
|
|
%
|
|
|
|
2015
|
|
|
2014
|
|
|
Change1
|
Net Operating Revenues
|
|
|
$
|
34,294
|
|
|
|
$
|
35,126
|
|
|
|
(2
|
)
|
Cost of goods sold
|
|
|
13,428
|
|
|
|
13,532
|
|
|
|
(1
|
)
|
Gross Profit
|
|
|
20,866
|
|
|
|
21,594
|
|
|
|
(3
|
)
|
Selling, general and administrative expenses
|
|
|
12,490
|
|
|
|
12,880
|
|
|
|
(3
|
)
|
Other operating charges
|
|
|
1,166
|
|
|
|
457
|
|
|
|
155
|
|
Operating Income
|
|
|
7,210
|
|
|
|
8,257
|
|
|
|
(13
|
)
|
Interest income
|
|
|
459
|
|
|
|
436
|
|
|
|
5
|
|
Interest expense
|
|
|
713
|
|
|
|
344
|
|
|
|
107
|
|
Equity income (loss) — net
|
|
|
402
|
|
|
|
530
|
|
|
|
(24
|
)
|
Other income (loss) — net
|
|
|
709
|
|
|
|
(630
|
)
|
|
|
—
|
|
Income Before Income Taxes
|
|
|
8,067
|
|
|
|
8,249
|
|
|
|
(2
|
)
|
Income taxes
|
|
|
1,937
|
|
|
|
1,896
|
|
|
|
2
|
|
Consolidated Net Income
|
|
|
6,130
|
|
|
|
6,353
|
|
|
|
(4
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
16
|
|
|
|
25
|
|
|
|
(36
|
)
|
Net Income Attributable to Shareowners of The Coca-Cola Company
|
|
|
$
|
6,114
|
|
|
|
$
|
6,328
|
|
|
|
(3
|
)
|
Diluted Net Income Per Share2
|
|
|
$
|
1.39
|
|
|
|
$
|
1.42
|
|
|
|
(2
|
)
|
Average Shares Outstanding — Diluted2
|
|
|
4,410
|
|
|
|
4,454
|
|
|
|
|
1
|
|
Certain growth rates may not recalculate using the rounded dollar
amounts provided.
|
2
|
|
For the nine months ended October 2, 2015 and September 26, 2014,
basic net income per share was $1.40 for 2015 and $1.44 for 2014
based on average shares outstanding — basic of 4,357 million for
2015 and 4,392 million for 2014. Basic net income per share and
diluted net income per share are calculated based on net income
attributable to shareowners of The Coca-Cola Company.
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets
|
(UNAUDITED)
|
(In millions except par value)
|
|
|
|
|
|
|
|
|
|
|
October 2,
|
|
|
December 31,
|
|
|
|
2015
|
|
|
2014
|
ASSETS
|
Current Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
9,983
|
|
|
|
$
|
8,958
|
|
Short-term investments
|
|
|
9,177
|
|
|
|
9,052
|
|
Total Cash, Cash Equivalents and Short-Term Investments
|
|
|
19,160
|
|
|
|
18,010
|
|
Marketable securities
|
|
|
3,614
|
|
|
|
3,665
|
|
Trade accounts receivable, less allowances of $361 and $331,
respectively
|
|
|
4,028
|
|
|
|
4,466
|
|
Inventories
|
|
|
2,910
|
|
|
|
3,100
|
|
Prepaid expenses and other assets
|
|
|
3,029
|
|
|
|
3,066
|
|
Assets held for sale
|
|
|
3,853
|
|
|
|
679
|
|
Total Current Assets
|
|
|
36,594
|
|
|
|
32,986
|
|
Equity Method Investments
|
|
|
12,504
|
|
|
|
9,947
|
|
Other Investments
|
|
|
2,430
|
|
|
|
3,678
|
|
Other Assets
|
|
|
4,446
|
|
|
|
4,407
|
|
Property, Plant and Equipment — net
|
|
|
12,615
|
|
|
|
14,633
|
|
Trademarks With Indefinite Lives
|
|
|
6,032
|
|
|
|
6,533
|
|
Bottlers' Franchise Rights With Indefinite Lives
|
|
|
6,133
|
|
|
|
6,689
|
|
Goodwill
|
|
|
11,357
|
|
|
|
12,100
|
|
Other Intangible Assets
|
|
|
897
|
|
|
|
1,050
|
|
Total Assets
|
|
|
$
|
93,008
|
|
|
|
$
|
92,023
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Current Liabilities
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
9,877
|
|
|
|
$
|
9,234
|
|
Loans and notes payable
|
|
|
17,545
|
|
|
|
19,130
|
|
Current maturities of long-term debt
|
|
|
2,692
|
|
|
|
3,552
|
|
Accrued income taxes
|
|
|
383
|
|
|
|
400
|
|
Liabilities held for sale
|
|
|
1,048
|
|
|
|
58
|
|
Total Current Liabilities
|
|
|
31,545
|
|
|
|
32,374
|
|
Long-Term Debt
|
|
|
25,949
|
|
|
|
19,063
|
|
Other Liabilities
|
|
|
4,194
|
|
|
|
4,389
|
|
Deferred Income Taxes
|
|
|
5,053
|
|
|
|
5,636
|
|
The Coca-Cola Company Shareowners' Equity
|
|
|
|
|
|
|
Common stock, $0.25 par value; Authorized — 11,200 shares; Issued
— 7,040 and 7,040 shares, respectively
|
|
|
1,760
|
|
|
|
1,760
|
|
Capital surplus
|
|
|
13,715
|
|
|
|
13,154
|
|
Reinvested earnings
|
|
|
65,209
|
|
|
|
63,408
|
|
Accumulated other comprehensive income (loss)
|
|
|
(10,813
|
)
|
|
|
(5,777
|
)
|
Treasury stock, at cost — 2,698 and 2,674 shares, respectively
|
|
|
(43,822
|
)
|
|
|
(42,225
|
)
|
Equity Attributable to Shareowners of The Coca-Cola Company
|
|
|
26,049
|
|
|
|
30,320
|
|
Equity Attributable to Noncontrolling Interests
|
|
|
218
|
|
|
|
241
|
|
Total Equity
|
|
|
26,267
|
|
|
|
30,561
|
|
Total Liabilities and Equity
|
|
|
$
|
93,008
|
|
|
|
$
|
92,023
|
|
|
|
|
|
|
|
|
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Condensed Consolidated Statements of Cash
Flows
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
October 2,
|
|
|
September 26,
|
|
|
|
2015
|
|
|
2014
|
Operating Activities
|
|
|
|
|
|
|
Consolidated net income
|
|
|
$
|
6,130
|
|
|
|
$
|
6,353
|
|
Depreciation and amortization
|
|
|
1,443
|
|
|
|
1,477
|
|
Stock-based compensation expense
|
|
|
171
|
|
|
|
143
|
|
Deferred income taxes
|
|
|
212
|
|
|
|
(179
|
)
|
Equity (income) loss — net of dividends
|
|
|
(150
|
)
|
|
|
(259
|
)
|
Foreign currency adjustments
|
|
|
(76
|
)
|
|
|
305
|
|
Significant (gains) losses on sales of assets — net
|
|
|
(550
|
)
|
|
|
410
|
|
Other operating charges
|
|
|
697
|
|
|
|
192
|
|
Other items
|
|
|
859
|
|
|
|
38
|
|
Net change in operating assets and liabilities
|
|
|
(346
|
)
|
|
|
(501
|
)
|
Net cash provided by operating activities
|
|
|
8,390
|
|
|
|
7,979
|
|
Investing Activities
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(12,006
|
)
|
|
|
(14,098
|
)
|
Proceeds from disposals of investments
|
|
|
10,403
|
|
|
|
9,558
|
|
Acquisitions of businesses, equity method investments and
nonmarketable securities
|
|
|
(2,489
|
)
|
|
|
(343
|
)
|
Proceeds from disposals of businesses, equity method investments
and nonmarketable securities
|
|
|
416
|
|
|
|
73
|
|
Purchases of property, plant and equipment
|
|
|
(1,670
|
)
|
|
|
(1,618
|
)
|
Proceeds from disposals of property, plant and equipment
|
|
|
50
|
|
|
|
150
|
|
Other investing activities
|
|
|
(117
|
)
|
|
|
(280
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(5,413
|
)
|
|
|
(6,558
|
)
|
Financing Activities
|
|
|
|
|
|
|
Issuances of debt
|
|
|
34,298
|
|
|
|
33,292
|
|
Payments of debt
|
|
|
(30,159
|
)
|
|
|
(28,494
|
)
|
Issuances of stock
|
|
|
732
|
|
|
|
1,058
|
|
Purchases of stock for treasury
|
|
|
(1,966
|
)
|
|
|
(2,963
|
)
|
Dividends
|
|
|
(4,313
|
)
|
|
|
(2,680
|
)
|
Other financing activities
|
|
|
230
|
|
|
|
(409
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(1,178
|
)
|
|
|
(196
|
)
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
(774
|
)
|
|
|
(555
|
)
|
Cash and Cash Equivalents
|
|
|
|
|
|
|
Net increase (decrease) during the period
|
|
|
1,025
|
|
|
|
670
|
|
Balance at beginning of period
|
|
|
8,958
|
|
|
|
10,414
|
|
Balance at end of period
|
|
|
$
|
9,983
|
|
|
|
$
|
11,084
|
|
|
|
|
|
|
|
|
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Operating Segments
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues 1
|
|
|
Operating Income (Loss)
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
October 2, 2015
|
|
September 26,
2014
|
|
% Fav. / (Unfav.)
|
|
|
October 2, 2015
|
|
September 26,
2014
|
|
% Fav. / (Unfav.)
|
|
|
|
October 2, 2015
|
|
September 26,
2014
|
|
% Fav. / (Unfav.)
|
Eurasia & Africa
|
|
|
$
|
603
|
|
|
|
$
|
709
|
|
|
|
(15
|
)
|
|
|
|
$
|
208
|
|
|
|
$
|
265
|
|
|
|
(22
|
)
|
|
|
|
|
$
|
212
|
|
|
|
$
|
272
|
|
|
|
(22
|
)
|
Europe
|
|
|
1,330
|
|
|
|
1,429
|
|
|
|
(7
|
)
|
|
|
|
722
|
|
|
|
752
|
|
|
|
(4
|
)
|
|
|
|
|
733
|
|
|
|
763
|
|
|
|
(4
|
)
|
Latin America
|
|
|
1,012
|
|
|
|
1,177
|
|
|
|
(14
|
)
|
|
|
|
538
|
|
|
|
653
|
|
|
|
(18
|
)
|
|
|
|
|
535
|
|
|
|
654
|
|
|
|
(18
|
)
|
North America
|
|
|
5,639
|
|
|
|
5,599
|
|
|
|
1
|
|
|
|
|
681
|
|
|
|
760
|
|
|
|
(10
|
)
|
|
|
|
|
(116
|
)
|
|
|
486
|
|
|
|
—
|
|
Asia Pacific
|
|
|
1,406
|
|
|
|
1,575
|
|
|
|
(11
|
)
|
|
|
|
571
|
|
|
|
638
|
|
|
|
(11
|
)
|
|
|
|
|
576
|
|
|
|
648
|
|
|
|
(11
|
)
|
Bottling Investments
|
|
|
1,746
|
|
|
|
1,823
|
|
|
|
(4
|
)
|
|
|
|
(11
|
)
|
|
|
14
|
|
|
|
—
|
|
|
|
|
|
150
|
|
|
|
205
|
|
|
|
(27
|
)
|
Corporate
|
|
|
55
|
|
|
|
43
|
|
|
|
33
|
|
|
|
|
(330
|
)
|
|
|
(371
|
)
|
|
|
11
|
|
|
|
|
|
(365
|
)
|
|
|
(368
|
)
|
|
|
1
|
|
Eliminations
|
|
|
(364
|
)
|
|
|
(379
|
)
|
|
|
4
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Consolidated
|
|
|
$
|
11,427
|
|
|
|
$
|
11,976
|
|
|
|
(5
|
)
|
|
|
|
$
|
2,379
|
|
|
|
$
|
2,711
|
|
|
|
(12
|
)
|
|
|
|
|
$
|
1,725
|
|
|
|
$
|
2,660
|
|
|
|
(35
|
)
|
Note: Certain growth rates may not recalculate using the rounded dollar
amounts provided.
1 During the three months ended October 2, 2015, intersegment
revenues were $15 million for Eurasia and Africa, $154 million for
Europe, $19 million for Latin America, $4 million for North America,
$159 million for Asia Pacific and $13 million for Bottling Investments.
During the three months ended September 26, 2014, intersegment revenues
were $187 million for Europe, $16 million for Latin America, $3 million
for North America, $154 million for Asia Pacific and $19 million for
Bottling Investments.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Operating Segments
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues 1
|
|
Operating Income (Loss)
|
|
|
Income (Loss) Before Income Taxes
|
|
|
October 2, 2015
|
|
September 26,
2014
|
|
|
% Fav. / (Unfav.)
|
|
|
October 2, 2015
|
|
September 26,
2014
|
|
|
% Fav. / (Unfav.)
|
|
|
|
October 2, 2015
|
|
|
September 26,
2014
|
|
|
|
% Fav. / (Unfav.)
|
Eurasia & Africa
|
|
|
$
|
1,899
|
|
|
|
$
|
2,099
|
|
|
|
(9
|
)
|
|
|
$
|
762
|
|
|
|
$
|
858
|
|
|
|
(11
|
)
|
|
|
|
$
|
785
|
|
|
|
$
|
893
|
|
|
|
(12
|
)
|
Europe
|
|
|
3,977
|
|
|
|
4,291
|
|
|
|
(7
|
)
|
|
|
2,274
|
|
|
|
2,363
|
|
|
|
(4
|
)
|
|
|
|
2,300
|
|
|
|
2,398
|
|
|
|
(4
|
)
|
Latin America
|
|
|
3,051
|
|
|
|
3,406
|
|
|
|
(10
|
)
|
|
|
1,641
|
|
|
|
1,954
|
|
|
|
(16
|
)
|
|
|
|
1,649
|
|
|
|
1,957
|
|
|
|
(16
|
)
|
North America
|
|
|
16,657
|
|
|
|
16,109
|
|
|
|
3
|
|
|
|
2,079
|
|
|
|
2,015
|
|
|
|
3
|
|
|
|
|
1,245
|
|
|
|
1,593
|
|
|
|
(22
|
)
|
Asia Pacific
|
|
|
4,292
|
|
|
|
4,613
|
|
|
|
(7
|
)
|
|
|
1,876
|
|
|
|
2,041
|
|
|
|
(8
|
)
|
|
|
|
1,890
|
|
|
|
2,059
|
|
|
|
(8
|
)
|
Bottling Investments
|
|
|
5,354
|
|
|
|
5,556
|
|
|
|
(4
|
)
|
|
|
34
|
|
|
|
26
|
|
|
|
30
|
|
|
|
|
380
|
|
|
|
481
|
|
|
|
(21
|
)
|
Corporate
|
|
|
120
|
|
|
|
126
|
|
|
|
(4
|
)
|
|
|
(1,456
|
)
|
|
|
(1,000
|
)
|
|
|
(46
|
)
|
|
|
|
(182
|
)
|
|
|
(1,132
|
)
|
|
|
84
|
|
Eliminations
|
|
|
(1,056
|
)
|
|
|
(1,074
|
)
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Consolidated
|
|
|
$
|
34,294
|
|
|
|
$
|
35,126
|
|
|
|
(2
|
)
|
|
|
$
|
7,210
|
|
|
|
$
|
8,257
|
|
|
|
(13
|
)
|
|
|
|
$
|
8,067
|
|
|
|
$
|
8,249
|
|
|
|
(2
|
)
|
Note: Certain growth rates may not recalculate using the rounded dollar
amounts provided.
1
|
|
During the nine months ended October 2, 2015, intersegment revenues
were $22 million for Eurasia and Africa, $449 million for Europe,
$56 million for Latin America, $14 million for North America, $476
million for Asia Pacific and $39 million for Bottling Investments.
During the nine months ended September 26, 2014, intersegment
revenues were $530 million for Europe, $46 million for Latin
America, $13 million for North America, $432 million for Asia
Pacific and $53 million for Bottling Investments.
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
The Company reports its financial results in accordance with accounting
principles generally accepted in the United States ("GAAP" or referred
to herein as "reported"). However, management believes that certain
non-GAAP financial measures provide users with additional meaningful
financial information that should be considered when assessing our
ongoing performance. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and in
evaluating the Company's performance. Non-GAAP financial measures should
be viewed in addition to, and not as an alternative for, the Company’s
reported results prepared in accordance with GAAP. Our non-GAAP
financial information does not represent a comprehensive basis of
accounting.
ITEMS IMPACTING COMPARABILITY
The following information is provided to give qualitative and
quantitative information related to items impacting comparability. Items
impacting comparability are not defined terms within GAAP. Therefore,
our non-GAAP financial information may not be comparable to similarly
titled measures reported by other companies. We determine which items to
consider as "items impacting comparability" based on how management
views our business; makes financial, operating and planning decisions;
and evaluates the Company's ongoing performance. Items such as charges,
gains and accounting changes which are viewed by management as impacting
only the current period or the comparable period, but not both, or as
relating to different and unrelated underlying activities or events
across comparable periods, are generally considered "items impacting
comparability". In addition, we provide the impact that changes in
foreign currency exchange rates had on our financial results ("currency
neutral").
Asset Impairments and Restructuring
Restructuring
During the three and nine months ended October 2, 2015, the Company
recorded charges of $75 million and $204 million, respectively. The
Company recorded charges of $34 million and $142 million during the
three and nine months ended September 26, 2014, respectively. These
charges were related to the integration of our German bottling and
distribution operations.
Productivity and Reinvestment
During the three and nine months ended October 2, 2015, the Company
recorded charges of $141 million and $323 million, respectively, related
to our productivity and reinvestment program. The Company also recorded
charges of $84 million and $259 million during the three and nine months
ended September 26, 2014, respectively. These productivity and
reinvestment initiatives are focused on four key areas: restructuring
the Company's global supply chain, including manufacturing in North
America; implementing zero-based work, an evolution of zero-based budget
principles across the organization; streamlining and simplifying the
Company's operating model; and further driving increased discipline and
efficiency in direct marketing investments. The savings realized from
the program will enable the Company to fund marketing initiatives and
innovation required to deliver sustainable net revenue growth. The
savings will also support margin expansion and increased returns on
invested capital over time.
Equity Investees
During the three and nine months ended October 2, 2015, the Company
recorded a net gain of $3 million and a net charge of $79 million,
respectively. During the three and nine months ended September 26, 2014,
the Company recorded net charges of $8 million and $20 million,
respectively. These amounts represent the Company’s proportionate share
of unusual or infrequent items recorded by certain of our equity method
investees.
Transaction Gains/Losses
During the three and nine months ended October 2, 2015, the Company
recorded charges of $815 million and $848 million, respectively. The
Company recorded charges of $270 million and $410 million during the
three and nine months ended September 26, 2014, respectively. These
charges were primarily due to the derecognition of intangible assets
relating to the refranchising of territories in North America to certain
of its unconsolidated bottling partners.
During the nine months ended October 2, 2015, the Company recorded a net
gain of $1,402 million as a result of our transaction with Monster
Beverage Corporation ("Monster"), primarily due to the difference in the
recorded carrying value of the assets transferred, including an
allocated portion of goodwill, compared to the value of the total assets
and business acquired. This net gain was recorded in the line item other
income (loss) — net in our condensed consolidated statement of income.
Additionally, under the terms of this transaction, the Company is
required to discontinue selling energy products under certain
trademarks, including one trademark in the glacéau portfolio. As a
result, the Company recognized an impairment charge of $380 million in
the line item other operating charges in our condensed consolidated
statement of income upon the closing of the transaction with Monster,
primarily related to the discontinuation of the energy products in the
glacéau portfolio.
During the three and nine months ended October 2, 2015, the Company
recorded an impairment charge of $38 million on a trademark in the
glacéau portfolio. This charge was primarily a result of foreign
currency exchange rate fluctuations that impacted the fair value of the
asset.
In the fourth quarter of 2014, the owners of the majority interest of a
Brazilian bottler exercised their option to acquire from us a 10 percent
interest in the entity's outstanding shares resulting in our recognizing
an estimated loss of $32 million due to the exercise price being lower
than our carrying value. The transaction closed in January 2015, and the
Company recorded an additional loss of $6 million during the nine months
ended October 2, 2015, calculated based on the final option price. Also
during the nine months ended October 2, 2015, the Company recorded a
loss of $19 million on our previously held investment in a South African
bottler, which had been accounted for under the equity method of
accounting prior to our acquisition of the bottler in February 2015.
During the three and nine months ended September 26, 2014, the Company
recorded a charge of $7 million associated with our indemnification of a
previously consolidated entity. The impact of this charge effectively
reduced the initial gain the Company recognized when we sold the entity.
Other Items
Economic (Nondesignated) Hedges
The Company uses derivatives as economic hedges primarily to mitigate
the price risk associated with the purchase of materials used in the
manufacturing process as well as the purchase of vehicle fuel. Although
these derivatives were not designated and/or did not qualify for hedge
accounting, they are effective economic hedges. The changes in fair
values of these economic hedges are immediately recognized into earnings.
The Company excludes the net impact of mark-to-market adjustments for
outstanding hedges and realized gains/losses for settled hedges from our
non-GAAP financial information until the period in which the underlying
exposure being hedged impacts our condensed consolidated statement of
income. We believe this adjustment provides meaningful information
related to the impact of our economic hedging activities. During the
three months ended October 2, 2015 and September 26, 2014, the net
impact of the Company's adjustment related to our economic hedging
activities described above resulted in an increase of $87 million and a
decrease of $21 million, respectively, to our non-GAAP income before
income taxes. During the nine months ended October 2, 2015 and September
26, 2014, the net impact of the Company's adjustment related to our
economic hedging activities described above resulted in an increase of
$76 million and a decrease of $120 million, respectively, to our
non-GAAP income before income taxes.
Restructuring and Transitioning Russian Juice Operations
During the three and nine months ended September 26, 2014, the Company
recorded losses of $5 million and $30 million, respectively, related to
restructuring and transitioning the Company's Russian juice operations
to an existing joint venture with an unconsolidated bottling partner.
Hyperinflationary Economies
During the three and nine months ended October 2, 2015, the Company
recorded net charges of $3 million and $138 million, respectively,
related to our Venezuelan operations. These charges were primarily a
result of the remeasurement of the net monetary assets of our Venezuelan
subsidiary using the SIMADI exchange rate, an impairment of a Venezuelan
trademark due to higher exchange rates, and a write-down of receivables
from our bottling partner in Venezuela. The write-down was recorded
primarily as a result of the continued lack of liquidity and our revised
assessment of the U.S. dollar value we expect to realize upon the
conversion of the Venezuelan bolivar into U.S. dollars by our bottling
partner to pay our receivables.
During the nine months ended September 26, 2014, the Company recorded
charges of $268 million related to the devaluation of the Venezuelan
bolivar, including a write-down of receivables from our bottling partner
in Venezuela as well as our proportionate share of the charge incurred
by our bottling partner in Venezuela, an equity method investee.
Donation to The Coca-Cola Foundation
During the nine months ended October 2, 2015, the Company recorded a
charge of $100 million due to a contribution made to The Coca-Cola
Foundation, which was recorded in the line item other operating charges
in our condensed consolidated statement of income.
Early Extinguishment of Long-Term Debt
During the nine months ended October 2, 2015, the Company recorded
charges of $320 million due to the early extinguishment of certain
long-term debt, which were recorded in the line item interest expense in
our condensed consolidated statement of income.
Certain Tax Matters
During the three and nine months ended October 2, 2015, the Company
recorded a net tax benefit of $6 million related to amounts required to
be recorded for changes to our uncertain tax positions, including
interest and penalties. During the three and nine months ended
September 26, 2014, the Company recorded a net tax benefit of
$29 million and a net tax charge of $2 million, respectively, related to
amounts required to be recorded for changes to our uncertain tax
positions, including interest and penalties.
CURRENCY NEUTRAL
Management evaluates the operating performance of our Company and our
international subsidiaries on a currency neutral basis. We determine our
currency neutral operating results by dividing or multiplying, as
appropriate, our current period actual U.S. dollar operating results,
normalizing for certain structural items in hyperinflationary economies,
by the current period actual exchange rates (that include the impact of
current period currency hedging activities), to derive our current
period local currency operating results. We then multiply or divide, as
appropriate, the derived current period local currency operating results
by the foreign currency exchange rates (that also include the impact of
the comparable prior period currency hedging activities) used to
translate the Company's financial statements in the comparable prior
year period to determine what the current period U.S. dollar operating
results would have been if the foreign currency exchange rates had not
changed from the comparable prior year period.
ORGANIC REVENUE
Organic revenue is a non-GAAP financial measure that excludes or
otherwise adjusts for the impact of changes in foreign currency exchange
rates and acquisitions and divestitures (including structural changes),
as applicable. The adjustments related to acquisitions and divestitures
for the three and nine months ended October 2, 2015 and September 26,
2014 consisted entirely of the structural changes discussed below.
STRUCTURAL CHANGES
Structural changes generally refer to acquisitions or dispositions of
bottling, distribution or canning operations and consolidation or
deconsolidation of bottling and distribution entities for accounting
purposes. In 2015, the Company refranchised additional territories in
North America to certain of its unconsolidated bottling partners; sold
its global energy drink business to Monster; acquired Monster's
non-energy drink business; acquired an equity interest in Monster;
amended its current distribution coordination agreements with Monster to
expand into additional territories; and acquired a South African
bottler. In 2014, the Company refranchised territories in North America
to certain of its unconsolidated bottling partners; changed its process
of buying and selling recyclable materials in North America; acquired
bottling operations in Sri Lanka and Nepal; and restructured and
transitioned its Russian juice operations to an existing joint venture
with an unconsolidated bottling partner. Accordingly, these activities
have been included as structural items in our analysis of the impact of
these changes on certain line items in our condensed consolidated
statements of income.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
Cost of
|
|
|
|
|
|
|
|
|
|
|
general and
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
operating
|
|
|
goods
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
administrative
|
|
|
operating
|
|
|
|
Operating
|
|
|
|
Operating
|
|
|
|
revenues
|
|
|
sold
|
|
|
profit
|
|
|
|
margin
|
|
|
|
expenses
|
|
|
charges
|
|
|
|
income
|
|
|
|
margin
|
Reported (GAAP)
|
|
|
$
|
11,427
|
|
|
|
$
|
4,577
|
|
|
|
$
|
6,850
|
|
|
|
59.9
|
%
|
|
|
|
$
|
4,207
|
|
|
|
$
|
264
|
|
|
|
|
$
|
2,379
|
|
|
|
20.8
|
%
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(75
|
)
|
|
|
|
75
|
|
|
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(141
|
)
|
|
|
|
141
|
|
|
|
|
Equity Investees
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(44
|
)
|
|
|
|
44
|
|
|
|
|
Other Items
|
|
|
(27
|
)
|
|
|
(93
|
)
|
|
|
66
|
|
|
|
|
|
|
|
4
|
|
|
|
(4
|
)
|
|
|
|
66
|
|
|
|
|
Certain Tax Matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
11,400
|
|
|
|
$
|
4,484
|
|
|
|
$
|
6,916
|
|
|
|
60.7
|
%
|
|
|
|
$
|
4,211
|
|
|
|
$
|
—
|
|
|
|
|
$
|
2,705
|
|
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 26, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
Cost of
|
|
|
|
|
|
|
|
|
|
|
general and
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
operating
|
|
|
goods
|
|
|
Gross
|
|
|
|
Gross
|
|
|
|
administrative
|
|
|
operating
|
|
|
|
Operating
|
|
|
|
Operating
|
|
|
|
revenues
|
|
|
sold
|
|
|
profit
|
|
|
|
margin
|
|
|
|
expenses
|
|
|
charges
|
|
|
|
income
|
|
|
|
margin
|
Reported (GAAP)
|
|
|
$
|
11,976
|
|
|
|
$
|
4,630
|
|
|
|
$
|
7,346
|
|
|
|
61.3
|
%
|
|
|
|
$
|
4,507
|
|
|
|
$
|
128
|
|
|
|
|
$
|
2,711
|
|
|
|
22.6
|
%
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(34
|
)
|
|
|
|
34
|
|
|
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(84
|
)
|
|
|
|
84
|
|
|
|
|
Equity Investees
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(7
|
)
|
|
|
|
7
|
|
|
|
|
Other Items
|
|
|
5
|
|
|
|
19
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
(15
|
)
|
|
|
(3
|
)
|
|
|
|
4
|
|
|
|
|
Certain Tax Matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
11,981
|
|
|
|
$
|
4,649
|
|
|
|
$
|
7,332
|
|
|
|
61.2
|
%
|
|
|
|
$
|
4,492
|
|
|
|
$
|
—
|
|
|
|
|
$
|
2,840
|
|
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
Cost of
|
|
|
|
|
|
|
|
|
|
|
general and
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
operating
|
|
|
goods
|
|
|
Gross
|
|
|
|
|
|
|
|
administrative
|
|
|
operating
|
|
|
|
Operating
|
|
|
|
|
|
|
|
revenues
|
|
|
sold
|
|
|
profit
|
|
|
|
|
|
|
|
expenses
|
|
|
charges
|
|
|
|
income
|
|
|
|
|
% Change — Reported (GAAP)
|
|
|
(5)
|
|
|
(1)
|
|
|
(7)
|
|
|
|
|
|
|
|
(7)
|
|
|
107
|
|
|
|
(12)
|
|
|
|
|
% Currency Impact
|
|
|
(8)
|
|
|
(5)
|
|
|
(9)
|
|
|
|
|
|
|
|
(7)
|
|
|
—
|
|
|
|
(12)
|
|
|
|
|
% Change — Currency Neutral Reported
|
|
|
3
|
|
|
4
|
|
|
2
|
|
|
|
|
|
|
|
1
|
|
|
—
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items
(Non-GAAP)
|
|
|
(5)
|
|
|
(4)
|
|
|
(6)
|
|
|
|
|
|
|
|
(6)
|
|
|
—
|
|
|
|
(5)
|
|
|
|
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(8)
|
|
|
(5)
|
|
|
(9)
|
|
|
|
|
|
|
|
(7)
|
|
|
—
|
|
|
|
(12)
|
|
|
|
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
3
|
|
|
2
|
|
|
4
|
|
|
|
|
|
|
|
1
|
|
|
—
|
|
|
|
8
|
|
|
|
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
Interest expense
|
|
|
Equity income (loss) — net
|
|
|
Other income (loss) — net
|
|
|
Income before income taxes
|
|
|
Income taxes
|
|
|
Effective tax rate
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
|
Diluted net income per share1
|
Reported (GAAP)
|
|
|
$
|
138
|
|
|
|
$
|
200
|
|
|
|
$
|
(871
|
)
|
|
|
$
|
1,725
|
|
|
|
$
|
272
|
|
|
|
15.8
|
%
|
|
|
$
|
4
|
|
|
|
$
|
1,449
|
|
|
|
$
|
0.33
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
75
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
75
|
|
|
|
0.02
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
141
|
|
|
|
49
|
|
|
|
|
|
|
—
|
|
|
|
92
|
|
|
|
0.02
|
|
Equity Investees
|
|
|
—
|
|
|
|
(3
|
)
|
|
|
—
|
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
815
|
|
|
|
859
|
|
|
|
291
|
|
|
|
|
|
|
—
|
|
|
|
568
|
|
|
|
0.13
|
|
Other Items
|
|
|
—
|
|
|
|
—
|
|
|
|
25
|
|
|
|
91
|
|
|
|
33
|
|
|
|
|
|
|
—
|
|
|
|
58
|
|
|
|
0.01
|
|
Certain Tax Matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6
|
|
|
|
|
|
|
—
|
|
|
|
(6
|
)
|
|
|
—
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
138
|
|
|
|
$
|
197
|
|
|
|
$
|
(31
|
)
|
|
|
$
|
2,888
|
|
|
|
$
|
650
|
|
|
|
22.5
|
%
|
|
|
$
|
4
|
|
|
|
$
|
2,234
|
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 26, 2014
|
|
|
|
Interest expense
|
|
|
Equity income (loss) — net
|
|
|
Other income (loss) — net
|
|
|
Income before income taxes
|
|
|
Income taxes
|
|
|
Effective tax rate
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
|
Diluted net income per share2
|
Reported (GAAP)
|
|
|
$
|
113
|
|
|
|
$
|
205
|
|
|
|
$
|
(312
|
)
|
|
|
$
|
2,660
|
|
|
|
$
|
538
|
|
|
|
20.2
|
%
|
|
|
$
|
8
|
|
|
|
$
|
2,114
|
|
|
|
$
|
0.48
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
34
|
|
|
|
0.01
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
84
|
|
|
|
30
|
|
|
|
|
|
|
—
|
|
|
|
54
|
|
|
|
0.01
|
|
Equity Investees
|
|
|
—
|
|
|
|
8
|
|
|
|
—
|
|
|
|
8
|
|
|
|
1
|
|
|
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
270
|
|
|
|
277
|
|
|
|
96
|
|
|
|
|
|
|
—
|
|
|
|
181
|
|
|
|
0.04
|
|
Other Items
|
|
|
—
|
|
|
|
—
|
|
|
|
(19
|
)
|
|
|
(15
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
—
|
|
|
|
(7
|
)
|
|
|
—
|
|
Certain Tax Matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29
|
|
|
|
|
|
|
—
|
|
|
|
(29
|
)
|
|
|
(0.01
|
)
|
After Considering Items (Non-GAAP)
|
|
|
$
|
113
|
|
|
|
$
|
213
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
3,048
|
|
|
|
$
|
686
|
|
|
|
22.5
|
%
|
|
|
$
|
8
|
|
|
|
$
|
2,354
|
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
Equity income (loss) — net
|
|
|
Other income (loss) — net
|
|
|
Income before income taxes
|
|
|
Income taxes
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
|
Diluted net income per share
|
% Change — Reported (GAAP)
|
|
|
22
|
|
|
(2)
|
|
|
(180)
|
|
|
(35)
|
|
|
(49)
|
|
|
|
|
|
(50)
|
|
|
(31)
|
|
|
(31)
|
% Change — After Considering Items (Non-GAAP)
|
|
|
22
|
|
|
(7)
|
|
|
48
|
|
|
(5)
|
|
|
(5)
|
|
|
|
|
|
(51)
|
|
|
(5)
|
|
|
(4)
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
1
|
|
4,399 million average shares outstanding — diluted
|
2
|
|
4,445 million average shares outstanding — diluted
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
Net
|
|
Cost of
|
|
|
|
|
|
general and
|
|
Other
|
|
|
|
|
|
|
|
operating
|
|
goods
|
|
Gross
|
|
Gross
|
|
administrative
|
|
operating
|
|
Operating
|
|
Operating
|
|
|
|
revenues
|
|
sold
|
|
profit
|
|
margin
|
|
expenses
|
|
charges
|
|
income
|
|
margin
|
Reported (GAAP)
|
|
|
$
|
34,294
|
|
|
$
|
13,428
|
|
|
$
|
20,866
|
|
|
60.8
|
%
|
|
|
$
|
12,490
|
|
|
$
|
1,166
|
|
|
$
|
7,210
|
|
|
21.0
|
%
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(204
|
)
|
|
204
|
|
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(323
|
)
|
|
323
|
|
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(427
|
)
|
|
427
|
|
|
|
Other Items
|
|
|
(42
|
)
|
|
(66
|
)
|
|
24
|
|
|
|
|
|
33
|
|
|
(212
|
)
|
|
203
|
|
|
|
Certain Tax Matters
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
34,252
|
|
|
$
|
13,362
|
|
|
$
|
20,890
|
|
|
61.0
|
%
|
|
|
$
|
12,523
|
|
|
$
|
—
|
|
|
$
|
8,367
|
|
|
24.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 26, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
Net
|
|
Cost of
|
|
|
|
|
|
general and
|
|
Other
|
|
|
|
|
|
|
|
operating
|
|
goods
|
|
Gross
|
|
Gross
|
|
administrative
|
|
operating
|
|
Operating
|
|
Operating
|
|
|
|
revenues
|
|
sold
|
|
profit
|
|
margin
|
|
expenses
|
|
charges
|
|
income
|
|
margin
|
Reported (GAAP)
|
|
|
$
|
35,126
|
|
|
$
|
13,532
|
|
|
$
|
21,594
|
|
|
61.5
|
%
|
|
|
$
|
12,880
|
|
|
$
|
457
|
|
|
$
|
8,257
|
|
|
23.5
|
%
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(142
|
)
|
|
142
|
|
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(259
|
)
|
|
259
|
|
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
(7
|
)
|
|
7
|
|
|
|
Other Items
|
|
|
(15
|
)
|
|
88
|
|
|
(103
|
)
|
|
|
|
|
(14
|
)
|
|
(49
|
)
|
|
(40
|
)
|
|
|
Certain Tax Matters
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
35,111
|
|
|
$
|
13,620
|
|
|
$
|
21,491
|
|
|
61.2
|
%
|
|
|
$
|
12,866
|
|
|
$
|
—
|
|
|
$
|
8,625
|
|
|
24.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
|
|
|
|
|
|
|
|
|
|
Net
|
|
Cost of
|
|
|
|
|
|
|
general and
|
|
Other
|
|
|
|
|
|
|
|
operating
|
|
goods
|
|
Gross
|
|
|
|
|
administrative
|
|
operating
|
|
Operating
|
|
|
|
|
|
revenues
|
|
sold
|
|
profit
|
|
|
|
|
expenses
|
|
charges
|
|
income
|
|
|
% Change — Reported (GAAP)
|
|
|
(2)
|
|
(1)
|
|
(3)
|
|
|
|
|
(3)
|
|
155
|
|
(13)
|
|
|
% Currency Impact
|
|
|
(7)
|
|
(5)
|
|
(8)
|
|
|
|
|
(7)
|
|
—
|
|
(10)
|
|
|
% Change — Currency Neutral Reported
|
|
|
5
|
|
4
|
|
5
|
|
|
|
|
4
|
|
—
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items
(Non-GAAP)
|
|
|
(2)
|
|
(2)
|
|
(3)
|
|
|
|
|
(3)
|
|
—
|
|
(3)
|
|
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(7)
|
|
(5)
|
|
(8)
|
|
|
|
|
(7)
|
|
—
|
|
(11)
|
|
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
4
|
|
3
|
|
5
|
|
|
|
|
4
|
|
—
|
|
8
|
|
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
|
Interest expense
|
|
Equity income (loss) — net
|
|
Other income (loss) — net
|
|
Income before income taxes
|
|
Income taxes
|
|
Effective tax rate
|
|
Net income (loss) attributable to noncontrolling interests
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
Diluted net income per share1
|
Reported (GAAP)
|
|
|
$
|
713
|
|
|
$
|
402
|
|
|
$
|
709
|
|
|
$
|
8,067
|
|
|
$
|
1,937
|
|
|
24.0
|
%
|
|
|
$
|
16
|
|
|
$
|
6,114
|
|
|
$
|
1.39
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
|
|
|
—
|
|
|
204
|
|
|
0.05
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323
|
|
|
124
|
|
|
|
|
|
—
|
|
|
199
|
|
|
0.05
|
Equity Investees
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
|
5
|
|
|
|
|
|
—
|
|
|
74
|
|
|
0.02
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
(529
|
)
|
|
(102
|
)
|
|
(173
|
)
|
|
|
|
|
—
|
|
|
71
|
|
|
0.02
|
Other Items
|
|
|
(320
|
)
|
|
—
|
|
|
113
|
|
|
636
|
|
|
173
|
|
|
|
|
|
—
|
|
|
463
|
|
|
0.10
|
Certain Tax Matters
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
After Considering Items (Non-GAAP)
|
|
|
$
|
393
|
|
|
$
|
481
|
|
|
$
|
293
|
|
|
$
|
9,207
|
|
|
$
|
2,072
|
|
|
22.5
|
%
|
|
|
$
|
16
|
|
|
$
|
7,119
|
|
|
$
|
1.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 26, 2014
|
|
|
|
Interest expense
|
|
Equity income (loss) — net
|
|
Other income (loss) — net
|
|
Income before income taxes
|
|
Income taxes
|
|
Effective tax rate
|
|
Net income (loss) attributable to noncontrolling interests
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
Diluted net income per share2
|
Reported (GAAP)
|
|
|
$
|
344
|
|
|
$
|
530
|
|
|
$
|
(630
|
)
|
|
$
|
8,249
|
|
|
$
|
1,896
|
|
|
23.0
|
%
|
|
|
$
|
25
|
|
|
$
|
6,328
|
|
|
$
|
1.42
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
|
|
|
—
|
|
|
142
|
|
|
0.03
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
259
|
|
|
96
|
|
|
|
|
|
—
|
|
|
163
|
|
|
0.04
|
Equity Investees
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
3
|
|
|
|
|
|
—
|
|
|
17
|
|
|
—
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
410
|
|
|
417
|
|
|
147
|
|
|
|
|
|
—
|
|
|
270
|
|
|
0.06
|
Other Items
|
|
|
—
|
|
|
21
|
|
|
198
|
|
|
179
|
|
|
(55
|
)
|
|
|
|
|
—
|
|
|
234
|
|
|
0.05
|
Certain Tax Matters
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
|
|
|
—
|
|
|
2
|
|
|
—
|
After Considering Items (Non-GAAP)
|
|
|
$
|
344
|
|
|
$
|
571
|
|
|
$
|
(22
|
)
|
|
$
|
9,266
|
|
|
$
|
2,085
|
|
|
22.5
|
%
|
|
|
$
|
25
|
|
|
$
|
7,156
|
|
|
$
|
1.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
Equity income (loss) — net
|
|
Other income (loss) — net
|
|
Income before income taxes
|
|
Income taxes
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
Net income attributable to shareowners of The
Coca-Cola Company
|
|
Diluted net income per share
|
% Change — Reported (GAAP)
|
|
|
107
|
|
(24)
|
|
—
|
|
(2)
|
|
2
|
|
|
|
|
(36)
|
|
(3)
|
|
(2)
|
% Change — After Considering Items (Non-GAAP)
|
|
|
14
|
|
(16)
|
|
—
|
|
(1)
|
|
(1)
|
|
|
|
|
(36)
|
|
(1)
|
|
0
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
1
|
|
4,410 million average shares outstanding — diluted
|
2
|
|
4,454 million average shares outstanding — diluted
|
|
|
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
|
|
|
|
|
|
Income Before Income Taxes and Diluted
Net Income Per Share:
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
Income before
|
|
|
Diluted net income
|
|
|
income taxes
|
|
|
per share
|
% Change — Reported (GAAP)
|
|
(35)
|
|
|
(31)
|
% Currency Impact
|
|
(12)
|
|
|
(13)
|
% Change — Currency Neutral Reported
|
|
(23)
|
|
|
(18)
|
% Structural Impact
|
|
0
|
|
|
N/A
|
% Change — Currency Neutral Reported and Adjusted for Structural
Impact
|
|
(22)
|
|
|
N/A
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
(5)
|
|
|
(4)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
(12)
|
|
|
(12)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
7
|
|
|
8
|
% Structural Impact After Considering Items (Non-GAAP)
|
|
(1)
|
|
|
N/A
|
% Change — Currency Neutral After Considering Items and Adjusted for
Structural Impact (Non-GAAP)
|
|
8
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
Income before
|
|
|
Diluted net income
|
|
|
income taxes
|
|
|
per share
|
% Change — Reported (GAAP)
|
|
(2)
|
|
|
(2)
|
% Currency Impact
|
|
(5)
|
|
|
(5)
|
% Change — Currency Neutral Reported
|
|
3
|
|
|
3
|
% Structural Impact
|
|
0
|
|
|
N/A
|
% Change — Currency Neutral Reported and Adjusted for Structural
Impact
|
|
3
|
|
|
N/A
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
(1)
|
|
|
0
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
(8)
|
|
|
(8)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
7
|
|
|
8
|
% Structural Impact After Considering Items (Non-GAAP)
|
|
0
|
|
|
N/A
|
% Change — Currency Neutral After Considering Items and Adjusted for
Structural Impact (Non-GAAP)
|
|
8
|
|
|
N/A
|
Note: Certain columns may not add due to rounding.
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
603
|
|
|
$
|
1,330
|
|
|
$
|
1,012
|
|
|
$
|
5,639
|
|
|
$
|
1,406
|
|
|
$
|
1,746
|
|
|
$
|
55
|
|
|
$
|
(364
|
)
|
|
$
|
11,427
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(27
|
)
|
After Considering Items (Non-GAAP)
|
|
|
$
|
603
|
|
|
$
|
1,330
|
|
|
$
|
1,012
|
|
|
$
|
5,637
|
|
|
$
|
1,406
|
|
|
$
|
1,746
|
|
|
$
|
30
|
|
|
$
|
(364
|
)
|
|
$
|
11,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 26, 2014
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
709
|
|
|
$
|
1,429
|
|
|
$
|
1,177
|
|
|
$
|
5,599
|
|
|
$
|
1,575
|
|
|
$
|
1,823
|
|
|
$
|
43
|
|
|
$
|
(379
|
)
|
|
$
|
11,976
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
4
|
|
|
(8
|
)
|
|
—
|
|
|
5
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
709
|
|
|
$
|
1,429
|
|
|
$
|
1,177
|
|
|
$
|
5,608
|
|
|
$
|
1,575
|
|
|
$
|
1,827
|
|
|
$
|
35
|
|
|
$
|
(379
|
)
|
|
$
|
11,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
|
(15)
|
|
(7)
|
|
(14)
|
|
1
|
|
(11)
|
|
(4)
|
|
33
|
|
—
|
|
(5)
|
% Currency Impact
|
|
|
(15)
|
|
(8)
|
|
(28)
|
|
(1)
|
|
(9)
|
|
(11)
|
|
34
|
|
—
|
|
(8)
|
% Change — Currency Neutral Reported
|
|
|
0
|
|
1
|
|
14
|
|
2
|
|
(1)
|
|
7
|
|
(1)
|
|
—
|
|
3
|
% Acquisition & Divestiture Adjustments
|
|
|
(2)
|
|
(1)
|
|
0
|
|
(1)
|
|
(1)
|
|
4
|
|
14
|
|
—
|
|
0
|
% Change — Organic Revenues (Non-GAAP)
|
|
|
2
|
|
3
|
|
14
|
|
3
|
|
(1)
|
|
3
|
|
(15)
|
|
—
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(15)
|
|
(7)
|
|
(14)
|
|
1
|
|
(11)
|
|
(4)
|
|
(10)
|
|
—
|
|
(5)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(15)
|
|
(8)
|
|
(28)
|
|
(1)
|
|
(9)
|
|
(11)
|
|
(8)
|
|
—
|
|
(8)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
0
|
|
1
|
|
14
|
|
2
|
|
(1)
|
|
7
|
|
(1)
|
|
—
|
|
3
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
1,899
|
|
|
$
|
3,977
|
|
|
$
|
3,051
|
|
|
$
|
16,657
|
|
|
$
|
4,292
|
|
|
$
|
5,354
|
|
|
$
|
120
|
|
|
$
|
(1,056
|
)
|
|
$
|
34,294
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(42
|
)
|
After Considering Items (Non-GAAP)
|
|
|
$
|
1,899
|
|
|
$
|
3,977
|
|
|
$
|
3,051
|
|
|
$
|
16,638
|
|
|
$
|
4,292
|
|
|
$
|
5,354
|
|
|
$
|
97
|
|
|
$
|
(1,056
|
)
|
|
$
|
34,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 26, 2014
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
2,099
|
|
|
$
|
4,291
|
|
|
$
|
3,406
|
|
|
$
|
16,109
|
|
|
$
|
4,613
|
|
|
$
|
5,556
|
|
|
$
|
126
|
|
|
$
|
(1,074
|
)
|
|
$
|
35,126
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Productivity & Reinvestment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
(20
|
)
|
|
(4
|
)
|
|
—
|
|
|
(15
|
)
|
After Considering Items (Non-GAAP)
|
|
|
$
|
2,099
|
|
|
$
|
4,291
|
|
|
$
|
3,406
|
|
|
$
|
16,118
|
|
|
$
|
4,613
|
|
|
$
|
5,536
|
|
|
$
|
122
|
|
|
$
|
(1,074
|
)
|
|
$
|
35,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
|
(9)
|
|
(7)
|
|
(10)
|
|
3
|
|
(7)
|
|
(4)
|
|
(4)
|
|
—
|
|
(2)
|
% Currency Impact
|
|
|
(12)
|
|
(10)
|
|
(22)
|
|
(1)
|
|
(9)
|
|
(9)
|
|
8
|
|
—
|
|
(7)
|
% Change — Currency Neutral Reported
|
|
|
3
|
|
3
|
|
12
|
|
4
|
|
1
|
|
6
|
|
(12)
|
|
—
|
|
5
|
% Acquisition & Divestiture Adjustments
|
|
|
(1)
|
|
0
|
|
0
|
|
(1)
|
|
0
|
|
2
|
|
6
|
|
—
|
|
0
|
% Change — Organic Revenues (Non-GAAP)
|
|
|
4
|
|
3
|
|
12
|
|
6
|
|
2
|
|
4
|
|
(18)
|
|
—
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(9)
|
|
(7)
|
|
(10)
|
|
3
|
|
(7)
|
|
(3)
|
|
(20)
|
|
—
|
|
(2)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(12)
|
|
(10)
|
|
(22)
|
|
(1)
|
|
(9)
|
|
(9)
|
|
(8)
|
|
—
|
|
(7)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
3
|
|
3
|
|
12
|
|
4
|
|
1
|
|
7
|
|
(12)
|
|
—
|
|
4
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
Operating Income (Loss) by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
208
|
|
|
$
|
722
|
|
|
$
|
538
|
|
|
$
|
681
|
|
|
$
|
571
|
|
|
$
|
(11
|
)
|
|
$
|
(330
|
)
|
|
$
|
2,379
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
Productivity & Reinvestment
|
|
|
1
|
|
|
(2
|
)
|
|
4
|
|
|
85
|
|
|
2
|
|
|
22
|
|
|
29
|
|
|
141
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
4
|
|
|
(21
|
)
|
|
66
|
After Considering Items (Non-GAAP)
|
|
|
$
|
209
|
|
|
$
|
720
|
|
|
$
|
542
|
|
|
$
|
849
|
|
|
$
|
573
|
|
|
$
|
90
|
|
|
$
|
(278
|
)
|
|
$
|
2,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 26, 2014
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
265
|
|
|
$
|
752
|
|
|
$
|
653
|
|
|
$
|
760
|
|
|
$
|
638
|
|
|
$
|
14
|
|
|
$
|
(371
|
)
|
|
$
|
2,711
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
Productivity & Reinvestment
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
59
|
|
|
2
|
|
|
—
|
|
|
20
|
|
|
84
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
10
|
|
|
(8
|
)
|
|
4
|
After Considering Items (Non-GAAP)
|
|
|
$
|
266
|
|
|
$
|
754
|
|
|
$
|
653
|
|
|
$
|
821
|
|
|
$
|
640
|
|
|
$
|
58
|
|
|
$
|
(352
|
)
|
|
$
|
2,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
|
(22)
|
|
(4)
|
|
(18)
|
|
(10)
|
|
(11)
|
|
—
|
|
11
|
|
(12)
|
% Currency Impact
|
|
|
(16)
|
|
(3)
|
|
(33)
|
|
0
|
|
(9)
|
|
—
|
|
6
|
|
(12)
|
% Change — Currency Neutral Reported
|
|
|
(6)
|
|
(1)
|
|
16
|
|
(10)
|
|
(1)
|
|
—
|
|
5
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(21)
|
|
(4)
|
|
(17)
|
|
4
|
|
(11)
|
|
54
|
|
21
|
|
(5)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(16)
|
|
(3)
|
|
(33)
|
|
(1)
|
|
(9)
|
|
(22)
|
|
1
|
|
(12)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
(6)
|
|
(2)
|
|
16
|
|
4
|
|
(1)
|
|
76
|
|
20
|
|
8
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) by Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
$
|
762
|
|
|
$
|
2,274
|
|
|
$
|
1,641
|
|
|
$
|
2,079
|
|
|
$
|
1,876
|
|
|
$
|
34
|
|
|
$
|
(1,456
|
)
|
|
$
|
7,210
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
204
|
|
Productivity & Reinvestment
|
|
16
|
|
|
(13
|
)
|
|
7
|
|
|
239
|
|
|
(1
|
)
|
|
22
|
|
|
53
|
|
|
323
|
|
Equity Investees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
427
|
|
|
427
|
|
Other Items
|
|
—
|
|
|
—
|
|
|
33
|
|
|
8
|
|
|
2
|
|
|
6
|
|
|
154
|
|
|
203
|
|
After Considering Items (Non-GAAP)
|
|
$
|
778
|
|
|
$
|
2,261
|
|
|
$
|
1,681
|
|
|
$
|
2,326
|
|
|
$
|
1,877
|
|
|
$
|
266
|
|
|
$
|
(822
|
)
|
|
$
|
8,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 26, 2014
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
$
|
858
|
|
|
$
|
2,363
|
|
|
$
|
1,954
|
|
|
$
|
2,015
|
|
|
$
|
2,041
|
|
|
$
|
26
|
|
|
$
|
(1,000
|
)
|
|
$
|
8,257
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
142
|
|
Productivity & Reinvestment
|
|
1
|
|
|
2
|
|
|
—
|
|
|
192
|
|
|
10
|
|
|
—
|
|
|
54
|
|
|
259
|
|
Equity Investees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Transaction Gains/Losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
Other Items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
30
|
|
|
20
|
|
|
(40
|
)
|
After Considering Items (Non-GAAP)
|
|
$
|
859
|
|
|
$
|
2,365
|
|
|
$
|
1,954
|
|
|
$
|
2,117
|
|
|
$
|
2,051
|
|
|
$
|
198
|
|
|
$
|
(919
|
)
|
|
$
|
8,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
(11)
|
|
(4)
|
|
(16)
|
|
3
|
|
(8)
|
|
30
|
|
(46)
|
|
(13)
|
% Currency Impact
|
|
(13)
|
|
(4)
|
|
(25)
|
|
0
|
|
(8)
|
|
36
|
|
3
|
|
(10)
|
% Change — Currency Neutral Reported
|
|
2
|
|
0
|
|
9
|
|
4
|
|
0
|
|
(6)
|
|
(48)
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
(9)
|
|
(4)
|
|
(14)
|
|
10
|
|
(8)
|
|
34
|
|
11
|
|
(3)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
(13)
|
|
(4)
|
|
(25)
|
|
0
|
|
(8)
|
|
(18)
|
|
1
|
|
(11)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
4
|
|
0
|
|
11
|
|
10
|
|
0
|
|
52
|
|
10
|
|
8
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes by
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
212
|
|
|
$
|
733
|
|
|
$
|
535
|
|
|
$
|
(116
|
)
|
|
$
|
576
|
|
|
$
|
150
|
|
|
$
|
(365
|
)
|
|
$
|
1,725
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
Productivity & Reinvestment
|
|
|
1
|
|
|
(2
|
)
|
|
4
|
|
|
85
|
|
|
2
|
|
|
22
|
|
|
29
|
|
|
141
|
|
Equity Investees
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
794
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|
859
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
91
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
210
|
|
|
$
|
731
|
|
|
$
|
539
|
|
|
$
|
846
|
|
|
$
|
578
|
|
|
$
|
251
|
|
|
$
|
(267
|
)
|
|
$
|
2,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 26, 2014
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
272
|
|
|
$
|
763
|
|
|
$
|
654
|
|
|
$
|
486
|
|
|
$
|
648
|
|
|
$
|
205
|
|
|
$
|
(368
|
)
|
|
$
|
2,660
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
Productivity & Reinvestment
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
59
|
|
|
2
|
|
|
—
|
|
|
20
|
|
|
84
|
|
Equity Investees
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
277
|
|
Other Items
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
10
|
|
|
(27
|
)
|
|
(15
|
)
|
After Considering Items (Non-GAAP)
|
|
|
$
|
273
|
|
|
$
|
765
|
|
|
$
|
654
|
|
|
$
|
817
|
|
|
$
|
650
|
|
|
$
|
257
|
|
|
$
|
(368
|
)
|
|
$
|
3,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
Latin
|
|
North
|
|
Asia
|
|
Bottling
|
|
|
|
|
|
|
|
Africa
|
|
Europe
|
|
America
|
|
America
|
|
Pacific
|
|
Investments
|
|
Corporate
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
|
(22)
|
|
(4)
|
|
(18)
|
|
—
|
|
(11)
|
|
(27)
|
|
1
|
|
(35)
|
% Currency Impact
|
|
|
(15)
|
|
(3)
|
|
(32)
|
|
—
|
|
(9)
|
|
(14)
|
|
11
|
|
(12)
|
% Change — Currency Neutral Reported
|
|
|
(7)
|
|
(1)
|
|
14
|
|
—
|
|
(2)
|
|
(12)
|
|
(11)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(23)
|
|
(4)
|
|
(17)
|
|
4
|
|
(11)
|
|
(2)
|
|
27
|
|
(5)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(15)
|
|
(3)
|
|
(32)
|
|
(1)
|
|
(9)
|
|
(17)
|
|
7
|
|
(12)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
(8)
|
|
(2)
|
|
15
|
|
4
|
|
(2)
|
|
15
|
|
20
|
|
7
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes by
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
|
Eurasia &
|
|
|
|
|
|
Latin
|
|
|
North
|
|
|
Asia
|
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Europe
|
|
|
America
|
|
|
America
|
|
|
Pacific
|
|
|
Investments
|
|
|
Corporate
|
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
785
|
|
|
|
$
|
2,300
|
|
|
|
$
|
1,649
|
|
|
|
$
|
1,245
|
|
|
|
$
|
1,890
|
|
|
|
$
|
380
|
|
|
|
$
|
(182
|
)
|
|
|
$
|
8,067
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
204
|
|
|
|
—
|
|
|
|
204
|
|
Productivity & Reinvestment
|
|
|
16
|
|
|
|
(13
|
)
|
|
|
7
|
|
|
|
239
|
|
|
|
(1
|
)
|
|
|
22
|
|
|
|
53
|
|
|
|
323
|
|
Equity Investees
|
|
|
(3
|
)
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
76
|
|
|
|
—
|
|
|
|
79
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
827
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(929
|
)
|
|
|
(102
|
)
|
Other Items
|
|
|
—
|
|
|
|
—
|
|
|
|
33
|
|
|
|
8
|
|
|
|
2
|
|
|
|
6
|
|
|
|
587
|
|
|
|
636
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
798
|
|
|
|
$
|
2,293
|
|
|
|
$
|
1,689
|
|
|
|
$
|
2,319
|
|
|
|
$
|
1,891
|
|
|
|
$
|
688
|
|
|
|
$
|
(471
|
)
|
|
|
$
|
9,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 26, 2014
|
|
|
|
Eurasia &
|
|
|
|
|
|
Latin
|
|
|
North
|
|
|
Asia
|
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Europe
|
|
|
America
|
|
|
America
|
|
|
Pacific
|
|
|
Investments
|
|
|
Corporate
|
|
|
Consolidated
|
Reported (GAAP)
|
|
|
$
|
893
|
|
|
|
$
|
2,398
|
|
|
|
$
|
1,957
|
|
|
|
$
|
1,593
|
|
|
|
$
|
2,059
|
|
|
|
$
|
481
|
|
|
|
$
|
(1,132
|
)
|
|
|
$
|
8,249
|
|
Items Impacting Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments/Restructuring
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
142
|
|
|
|
—
|
|
|
|
142
|
|
Productivity & Reinvestment
|
|
|
1
|
|
|
|
2
|
|
|
|
—
|
|
|
|
192
|
|
|
|
10
|
|
|
|
—
|
|
|
|
54
|
|
|
|
259
|
|
Equity Investees
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20
|
|
|
|
—
|
|
|
|
20
|
|
Transaction Gains/Losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
410
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
|
417
|
|
Other Items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(90
|
)
|
|
|
—
|
|
|
|
51
|
|
|
|
218
|
|
|
|
179
|
|
After Considering Items (Non-GAAP)
|
|
|
$
|
894
|
|
|
|
$
|
2,400
|
|
|
|
$
|
1,957
|
|
|
|
$
|
2,105
|
|
|
|
$
|
2,069
|
|
|
|
$
|
694
|
|
|
|
$
|
(853
|
)
|
|
|
$
|
9,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
|
|
|
|
|
|
Latin
|
|
|
North
|
|
|
Asia
|
|
|
Bottling
|
|
|
|
|
|
|
|
|
|
Africa
|
|
|
Europe
|
|
|
America
|
|
|
America
|
|
|
Pacific
|
|
|
Investments
|
|
|
Corporate
|
|
|
Consolidated
|
% Change — Reported (GAAP)
|
|
|
(12)
|
|
|
(4)
|
|
|
(16)
|
|
|
(22)
|
|
|
(8)
|
|
|
(21)
|
|
|
84
|
|
|
(2)
|
% Currency Impact
|
|
|
(13)
|
|
|
(4)
|
|
|
(25)
|
|
|
(1)
|
|
|
(8)
|
|
|
(11)
|
|
|
45
|
|
|
(5)
|
% Change — Currency Neutral Reported
|
|
|
1
|
|
|
0
|
|
|
9
|
|
|
(21)
|
|
|
0
|
|
|
(10)
|
|
|
39
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(11)
|
|
|
(4)
|
|
|
(14)
|
|
|
10
|
|
|
(9)
|
|
|
(1)
|
|
|
45
|
|
|
(1)
|
% Currency Impact After Considering Items (Non-GAAP)
|
|
|
(13)
|
|
|
(4)
|
|
|
(25)
|
|
|
(1)
|
|
|
(8)
|
|
|
(15)
|
|
|
34
|
|
|
(8)
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
2
|
|
|
0
|
|
|
11
|
|
|
11
|
|
|
0
|
|
|
15
|
|
|
11
|
|
|
7
|
Note: Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
|
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Leverage:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 2, 2015
|
|
|
|
|
|
|
|
|
|
Operating expense
|
|
|
|
Operating income
|
|
|
Gross profit
|
|
|
leverage1
|
% Change — Reported (GAAP)
|
|
|
(12)
|
|
|
(7)
|
|
|
(6)
|
% Change — Currency Neutral Reported
|
|
|
(1)
|
|
|
2
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(5)
|
|
|
(6)
|
|
|
1
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
8
|
|
|
4
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended October 2, 2015
|
|
|
|
|
|
|
|
|
|
Operating expense
|
|
|
|
Operating income
|
|
|
Gross profit
|
|
|
leverage1
|
% Change — Reported (GAAP)
|
|
|
(13)
|
|
|
(3)
|
|
|
(9)
|
% Change — Currency Neutral Reported
|
|
|
(2)
|
|
|
5
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
% Change — After Considering Items (Non-GAAP)
|
|
|
(3)
|
|
|
(3)
|
|
|
0
|
% Change — Currency Neutral After Considering Items (Non-GAAP)
|
|
|
8
|
|
|
5
|
|
|
2
|
Note: Certain rows may not add due to rounding.
1 Operating expense leverage is calculated by subtracting
gross profit growth from operating income growth.
THE COCA-COLA COMPANY AND SUBSIDIARIES
|
Reconciliation of GAAP and Non-GAAP
Financial Measures
|
(UNAUDITED)
|
(In millions)
|
|
|
|
|
|
|
Purchases and Issuances of Stock:
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
Nine Months Ended
|
|
|
October 2, 2015
|
|
|
September 26, 2014
|
Reported (GAAP)
|
|
|
|
|
|
Issuances of Stock
|
|
$
|
732
|
|
|
|
$
|
1,058
|
|
Purchases of Stock for Treasury
|
|
(1,966
|
)
|
|
|
(2,963
|
)
|
Net Change in Stock Issuance Receivables1
|
|
16
|
|
|
|
—
|
|
Net Change in Treasury Stock Payables2
|
|
(37
|
)
|
|
|
(21
|
)
|
Net Treasury Share Repurchases (Non-GAAP)
|
|
$
|
(1,255
|
)
|
|
|
$
|
(1,926
|
)
|
1
|
|
Represents the net change in receivables related to employee stock
options exercised but not settled prior to the end of the quarter.
|
2
|
|
Represents the net change in payables for treasury shares
repurchased but not settled prior to the end of the quarter.
|
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world's largest beverage
company, refreshing consumers with more than 500 sparkling and still
brands. Led by Coca-Cola, one of the world's most valuable and
recognizable brands, our Company's portfolio features 20 billion-dollar
brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater,
Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, we are
the No. 1 provider of sparkling beverages, ready-to-drink coffees, and
juices and juice drinks. Through the world's largest beverage
distribution system, consumers in more than 200 countries enjoy our
beverages at a rate of 1.9 billion servings a day. With an enduring
commitment to building sustainable communities, our Company is focused
on initiatives that reduce our environmental footprint, support active,
healthy living, create a safe, inclusive work environment for our
associates, and enhance the economic development of the communities
where we operate. Together with our bottling partners, we rank among the
world's top 10 private employers with more than 700,000 system
associates. For more information, visit Coca-Cola Journey at www.coca-colacompany.com,
follow us on Twitter at twitter.com/CocaColaCo,
visit our blog, Coca-Cola Unbottled, at www.coca-colablog.com
or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company.
Forward-Looking Statements
This press release may contain statements, estimates or projections
that constitute “forward-looking statements” as defined under U.S.
federal securities laws. Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will” and similar
expressions identify forward-looking statements, which generally are not
historical in nature. Forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from The Coca-Cola Company’s historical experience and
our present expectations or projections. These risks include, but are
not limited to, obesity concerns; water scarcity and poor quality;
evolving consumer preferences; increased competition and capabilities in
the marketplace; product safety and quality concerns; perceived negative
health consequences of certain ingredients, such as non-nutritive
sweeteners and biotechnology-derived substances, and of other substances
present in our beverage products or packaging materials; increased
demand for food products and decreased agricultural productivity;
changes in the retail landscape or the loss of key retail or foodservice
customers; an inability to expand operations in emerging and developing
markets; fluctuations in foreign currency exchange rates; interest rate
increases; an inability to maintain good relationships with our bottling
partners; a deterioration in our bottling partners' financial condition;
increases in income tax rates, changes in income tax laws or unfavorable
resolution of tax matters; increased or new indirect taxes in the United
States or in other major markets; increased cost, disruption of supply
or shortage of energy or fuels; increased cost, disruption of supply or
shortage of ingredients, other raw materials or packaging materials;
changes in laws and regulations relating to beverage containers and
packaging; significant additional labeling or warning requirements or
limitations on the availability of our products; an inability to protect
our information systems against service interruption, misappropriation
of data or breaches of security; unfavorable general economic conditions
in the United States; unfavorable economic and political conditions in
international markets; litigation or legal proceedings; adverse weather
conditions; climate change; damage to our brand image and corporate
reputation from negative publicity, even if unwarranted, related to
product safety or quality, human and workplace rights, obesity or other
issues; changes in, or failure to comply with, the laws and regulations
applicable to our products or our business operations; changes in
accounting standards; an inability to achieve our overall long-term
growth objectives; deterioration of global credit market conditions;
default by or failure of one or more of our counterparty financial
institutions; an inability to timely implement our previously announced
actions to reinvigorate growth, or to realize the economic benefits we
anticipate from these actions; failure to realize a significant portion
of the anticipated benefits of our strategic relationships with Keurig
Green Mountain, Inc. and Monster Beverage Corporation; an inability to
renew collective bargaining agreements on satisfactory terms, or we or
our bottling partners experience strikes, work stoppages or labor
unrest; future impairment charges; multi-employer plan withdrawal
liabilities in the future; an inability to successfully integrate and
manage our Company-owned or -controlled bottling operations; an
inability to successfully manage the possible negative consequences of
our productivity initiatives; global or regional catastrophic events;
and other risks discussed in our Company’s filings with the Securities
and Exchange Commission (SEC), including our Annual Report on Form 10-K
for the year ended December 31, 2014 and our subsequently filed
Quarterly Reports on Form 10-Q, which filings are available from the
SEC. You should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. The Coca-Cola
Company undertakes no obligation to publicly update or revise any
forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151021005697/en/
Copyright Business Wire 2015