![]() | Contacts: Investors and Analysts: Jackson Kelly T +01 404.676.7563 Media: Kent Landers T +01 404.676.2683 | The Coca-Cola Company Global Public Affairs & Communications Department P.O. Box 1734 Atlanta, GA 30301 |
• | Strong global volume growth of 4% in the quarter and 5% year-to-date. North America volume grew 1% in both the quarter and year-to-date, and international volume grew 5% in both the quarter and year-to-date. |
• | Second quarter reported net revenues grew 3% and comparable currency neutral net revenues grew 7%, driven by solid price/mix of 3%. Year-to-date reported net revenues grew 4% and comparable currency neutral net revenues grew 7%. |
• | Second quarter reported operating income grew 4% and comparable currency neutral operating income grew 7% in the quarter. Year-to-date reported operating income and comparable currency neutral operating income both grew 6%. |
• | Second quarter reported EPS was $1.21, up 1% and comparable EPS was $1.22, up 4%. Year-to-date reported and comparable EPS were both $2.11, both up 4%. |
• | Year-to-date cash from operations up 15%. Excluding incremental pension contributions in the first quarter, cash from operations also up 15%. |
• | Company shareowners approved a two-for-one stock split on July 10, 2012, the 11th split in our stock's 92-year history. |
• | Productivity and reinvestment program with incremental annualized savings of $550 to $650 million by the end of 2015 is on track. |
Three Months Ended June 29, 2012 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 4 | 3 | 4 | 7 | |
Eurasia & Africa | 12 | 5 | 5 | 15 | |
Europe | (4) | (9) | (8) | (3) | |
Latin America | 3 | 1 | 2 | 13 | |
North America | 1 | 5 | 2 | 0 | |
Pacific | 8 | 7 | 15 | 12 | |
Bottling Investments | 12 | 2 | (15) | 19 |
Six Months Ended June 29, 2012 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 5 | 4 | 6 | 6 | |
Eurasia & Africa | 11 | 4 | 8 | 17 | |
Europe | (2) | (6) | (6) | (3) | |
Latin America | 4 | 2 | 3 | 12 | |
North America | 1 | 5 | 0 | (4) | |
Pacific | 8 | 9 | 20 | 9 | |
Bottling Investments | 12 | 6 | 10 | 15 |
• | Our Eurasia and Africa Group's volume grew 12% in the quarter, cycling 7% growth in the prior year quarter, led by strong growth in India, up 20%, Middle East and North Africa, up 20% (up 13% excluding the benefit of the Aujan transaction), South Africa, up 10% and Russia, up 9%. Reported net revenues for the quarter increased 5%, reflecting a 9% increase in concentrate sales and positive price/mix of 7%, partially offset by an 11% currency impact. Concentrate sales in the quarter lagged unit case volume primarily due to timing. Comparable currency neutral net revenues increased 16% in the quarter. Reported operating income increased 5% in the quarter. Comparable currency neutral operating income increased 15% in the quarter, driven by the increase in net revenues, which offset |
• | During the quarter, Eurasia and Africa grew volume and value share in total NARTD beverages as well as in sparkling beverages, packaged water and juices and juice drinks. Sparkling beverage volume grew 11% in the quarter, led by brand Coca-Cola, which grew 12%. Sprite volume grew 16% in the quarter and Fanta volume grew 6%. Still beverage volume grew 18% in the quarter, including the benefit of the Aujan transaction which added 7 points of volume growth to overall Eurasia and Africa still beverages in the quarter. India sparkling beverage volume grew 20% in the quarter, driven by strong integrated marketing campaigns centered on music and sports. During the quarter, brand Coca-Cola volume in India grew 35% and Sprite grew 29%. Russia volume growth in the quarter was driven by strong growth in sparkling beverages, including brand Coca-Cola, up 23%, Fanta, up 26% and Sprite, up 12%. We gained volume and value share in total NARTD beverages and sparkling beverages in Russia, with a strong marketing campaign tied to the UEFA Euro 2012 (“Euro Cup”) soccer tournament as well as a continued focus on packaging segmentation. |
• | Our Europe Group's volume declined 4% in the quarter, cycling strong 5% growth in the prior year quarter, and reflecting the challenges of both very unseasonable weather as well as ongoing macroeconomic uncertainty across the region. Reported net revenues declined 9% in the quarter, reflecting a 4% decline in concentrate sales and a 7% unfavorable currency impact, partially offset by positive price/mix of 2%. Concentrate sales in the quarter were in line with unit case sales. Comparable currency neutral net revenues declined 2% in the quarter. Reported operating income declined 8% in the quarter. Comparable currency neutral operating income declined 3% in the quarter, reflecting the decline in net revenues and incremental investments related to the Olympic Games and Euro Cup tournament, partially offset by favorable timing of marketing expenses. |
• | During the quarter, the Europe Group successfully maintained market share in total NARTD beverages and sparkling beverages while gaining both volume and value share in still beverages. We continued to leverage integrated marketing campaigns centered on the Euro Cup and the upcoming Olympic Games, focusing on low-calorie and no-calorie sparkling beverages across key markets. In addition, we brought to market innovations like Sprite sweetened with stevia in France and Switzerland and PlantBottleTM packaging for Coca-Cola |
• | Our Latin America Group's volume grew 3% in the quarter, cycling 6% growth in the prior year quarter. Reported net revenues for the quarter increased 1%, reflecting concentrate sales growth of 3% and positive price/mix of 9%, partially offset by a currency impact of 10% and a 1% impact related to structural change. Concentrate sales in the quarter were in line with unit case volume. Comparable currency neutral net revenues increased 11% in the quarter. Reported operating income was up 2% in the quarter, with comparable currency neutral operating income up 13%, primarily reflecting volume growth and favorable pricing across the group, partially offset by continued investments in the business. |
• | During the quarter, the Latin America Group gained volume and value share in total NARTD beverages. All business units in Latin America grew volume in the quarter, with 6% growth in Brazil, 7% in South Latin, 4% in Latin Center and 1% in Mexico (cycling 10% growth in Mexico in the prior year quarter), all driven by a continued dual focus on affordability with refillable packages, and recruitment through investment in immediate consumption and the continued placement of new cold drink equipment. Brand Coca-Cola volume was up 2% in the quarter and both Sprite and Fanta volumes were up 4% in the quarter. Still beverage volume grew 8% in the quarter, driven by ready-to-drink tea, up 37% as a result of the strong performance of newly launched Fuze Tea, as well as 14% growth in juices and juice drinks and 28% growth in sports drinks. Both Mexico and Brazil grew volume and value share in the quarter in total NARTD beverages as well as in sparkling and still beverages, with a continued focus on both single-serve and returnable packaging. |
• | Our North America Group's volume grew 1% in the quarter despite a shift of some Easter and July 4th holiday volume out of the quarter when compared to the prior year period. Reported net revenues for the quarter increased 5%, reflecting volume growth of 1% as well |
• | During the quarter, North America gained value share in total NARTD beverages as we continue to provide consumers greater variety and choices in beverage packaging. In addition, we gained volume and value share in still beverages, with volume and value share gains across multiple still beverage categories, including juices and juice drinks, sports drinks, energy drinks and ready-to-drink tea. Sparkling beverage volume declined 2% in the quarter with sparkling beverage pricing growth of 5%, as we maintained the price increases put in place over the past year. Coca-Cola Zero volume grew mid single digits in its eighth year in the market, reflecting the Company's commitment to sustainable innovation. Fanta volume was up 6% in the quarter and Seagram's grew 4% in the quarter driven by the launch of Seagram's Sparkling Seltzer Water. Still beverage volume grew 8% in the quarter, led by continued strong Powerade growth of 13% with the new “Power Through” campaign as well as double-digit growth of Gold Peak tea and smartwater. Our juice brands grew 3% in the quarter, led by strong growth in Trademark Simply and the launch of new flavors in the Minute Maid Light portfolio. |
• | Our Pacific Group's volume grew 8% in the quarter. Reported net revenues for the quarter grew 7%, reflecting 5% concentrate sales growth, a 2% currency benefit and positive price/mix of 2%, partially offset by a 1% impact due to structural change as well as the cycling of prior year one-time items related to the natural disasters in Japan. Concentrate sales in the quarter lagged unit case sales as a result of timing of shipments, primarily in China. Comparable currency neutral net revenues increased 6% in the quarter. Reported operating income increased 15% in the quarter, reflecting positive geographic mix with strong growth in Japan, cycling the natural disasters of the prior year, as well as improved performance in the ASEAN markets. In addition, reported operating income reflects a 2% currency benefit. Comparable currency neutral operating income increased 12% in the quarter. |
• | During the quarter, the Pacific Group gained volume and value share in total NARTD beverages, driven by volume and value share gains across multiple still beverage categories. |
• | Our Bottling Investments Group's volume grew 10% in the quarter on a comparable basis after adjusting for the effect of structural changes, primarily the acquisition of the Vietnam and Cambodia bottling operations. Reported volume grew 12% in the quarter. The growth in comparable volume was primarily driven by India, China and the Philippines, with strong volume growth and market share gains in sparkling beverages across the group, led by growth of brand Coca-Cola. Germany volume growth continued, up 1% in the quarter. Reported net revenues for the quarter grew 2%. This reflects the 10% growth in comparable unit case volume and a 2% benefit due to structural changes, partially offset by price/mix, down 1%, primarily driven by geographic mix offsetting the benefit of positive pricing. Currency had a 9% unfavorable impact on reported net revenues. Comparable currency neutral net revenues increased 12% in the quarter. Reported operating income in the quarter decreased 15% due to currency as well as the impact of structural changes, primarily the acquisition of the Vietnam and Cambodia bottling operations. Comparable currency neutral operating income increased 19% in the quarter, reflecting the increase in revenues resulting from volume growth, positive pricing and product mix, offset by geographic mix and continued investments in our in-market capabilities. |
• | All references to growth rate percentages, share and cycling of growth rates compare the results of the period to those of the prior year comparable period. |
• | “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. |
• | “Sparkling beverages” means NARTD beverages with carbonation, including energy drinks and carbonated waters and flavored 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, except for the reference to volume included in the explanation of net revenue growth for North America. This North America volume represents Coca-Cola Refreshments' unit case sales (which are equivalent to concentrate sales) plus non-Company-owned bottling operations' concentrate sales. All volume percentage changes, unless otherwise noted, are computed based on average daily sales. “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. |
• | Year-to-date 2012 financial results were impacted by one less selling day. Fourth quarter 2012 financial results will benefit from two additional selling days. Unit case volume results are not impacted by the variance in selling days due to the average daily sales computation referenced above. |
• | Due to the refocusing in 2012 of the Beverage Partners Worldwide (BPW) ready-to-drink tea joint venture with Nestlé S.A. (Nestlé), we have eliminated the BPW joint venture volume from our reported results for both 2011 and 2012 in those countries in which the joint venture is being phased out during 2012. In addition, we have eliminated the Nestea licensed volume in the U.S. due to our current U.S. license agreement with Nestlé terminating at the end of 2012. These changes did not materially impact the Company's reported volume results for second quarter or year-to-date 2012 on a consolidated basis or for any individual operating group. However, these changes increased the Company's reported second quarter and year-to-date 2012 volume growth for ready-to-drink tea by 9 points and 6 points, respectively. |
• | 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 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. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||
Condensed Consolidated Statements of Income | |||||||||
(UNAUDITED) | |||||||||
(In millions except per share data) | |||||||||
Three Months Ended | |||||||||
June 29, 2012 | July 1, 2011 | % Change | |||||||
As Adjusted1 | |||||||||
Net Operating Revenues | $ | 13,085 | $ | 12,737 | 3 | ||||
Cost of goods sold | 5,224 | 4,989 | 5 | ||||||
Gross Profit | 7,861 | 7,748 | 1 | ||||||
Selling, general and administrative expenses | 4,497 | 4,417 | 2 | ||||||
Other operating charges | 70 | 152 | — | ||||||
Operating Income | 3,294 | 3,179 | 4 | ||||||
Interest income | 112 | 121 | (7) | ||||||
Interest expense | 112 | 84 | 33 | ||||||
Equity income (loss) — net | 245 | 221 | 11 | ||||||
Other income (loss) — net | 84 | 362 | — | ||||||
Income Before Income Taxes | 3,623 | 3,799 | (5) | ||||||
Income taxes | 823 | 992 | (17) | ||||||
Consolidated Net Income | 2,800 | 2,807 | 0 | ||||||
Less: Net income attributable to noncontrolling interests | 12 | 7 | 71 | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,788 | $ | 2,800 | 0 | ||||
Diluted Net Income Per Share2 | $ | 1.21 | $ | 1.20 | 1 | ||||
Average Shares Outstanding — Diluted2 | 2,296 | 2,330 |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
2 | For the three months ended June 29, 2012 and July 1, 2011, "Basic Net Income Per Share" was $1.24 for 2012 and $1.22 for 2011 based on "Average Shares Outstanding — Basic" of 2,255 for 2012 and 2,290 for 2011. 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) | |||||||||
Six Months Ended | |||||||||
June 29, 2012 | July 1, 2011 | % Change | |||||||
As Adjusted1 | |||||||||
Net Operating Revenues | $ | 24,222 | $ | 23,254 | 4 | ||||
Cost of goods sold | 9,572 | 8,937 | 7 | ||||||
Gross Profit | 14,650 | 14,317 | 2 | ||||||
Selling, general and administrative expenses | 8,678 | 8,493 | 2 | ||||||
Other operating charges | 169 | 361 | — | ||||||
Operating Income | 5,803 | 5,463 | 6 | ||||||
Interest income | 227 | 215 | 6 | ||||||
Interest expense | 200 | 197 | 2 | ||||||
Equity income (loss) — net | 385 | 355 | 8 | ||||||
Other income (loss) — net | 133 | 479 | — | ||||||
Income Before Income Taxes | 6,348 | 6,315 | 1 | ||||||
Income taxes | 1,481 | 1,592 | (7) | ||||||
Consolidated Net Income | 4,867 | 4,723 | 3 | ||||||
Less: Net income attributable to noncontrolling interests | 25 | 20 | 25 | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 4,842 | $ | 4,703 | 3 | ||||
Diluted Net Income Per Share2 | $ | 2.11 | $ | 2.02 | 4 | ||||
Average Shares Outstanding — Diluted2 | 2,298 | 2,330 |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
2 | For the six months ended June 29, 2012 and July 1, 2011, "Basic Net Income Per Share" was $2.14 for 2012 and $2.05 for 2011 based on "Average Shares Outstanding — Basic" of 2,259 for 2012 and 2,291 for 2011. 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) | |||||||
June 29, 2012 | December 31, 2011 | ||||||
As Adjusted1 | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 9,337 | $ | 12,803 | |||
Short-term investments | 4,807 | 1,088 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 14,144 | 13,891 | |||||
Marketable securities | 2,822 | 144 | |||||
Trade accounts receivable, less allowances of $77 and $83, respectively | 5,397 | 4,920 | |||||
Inventories | 3,587 | 3,092 | |||||
Prepaid expenses and other assets | 3,375 | 3,450 | |||||
Total Current Assets | 29,325 | 25,497 | |||||
Equity Method Investments | 7,838 | 7,233 | |||||
Other Investments, Principally Bottling Companies | 1,398 | 1,141 | |||||
Other Assets | 3,663 | 3,495 | |||||
Property, Plant and Equipment — net | 15,174 | 14,939 | |||||
Trademarks With Indefinite Lives | 6,473 | 6,430 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,738 | 7,770 | |||||
Goodwill | 12,357 | 12,219 | |||||
Other Intangible Assets | 1,183 | 1,250 | |||||
Total Assets | $ | 85,149 | $ | 79,974 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,775 | $ | 9,009 | |||
Loans and notes payable | 15,964 | 12,871 | |||||
Current maturities of long-term debt | 128 | 2,041 | |||||
Accrued income taxes | 615 | 362 | |||||
Total Current Liabilities | 26,482 | 24,283 | |||||
Long-Term Debt | 16,390 | 13,656 | |||||
Other Liabilities | 4,658 | 5,420 | |||||
Deferred Income Taxes | 4,990 | 4,694 | |||||
The Coca-Cola Company Shareowners' Equity | |||||||
Common stock, $0.25 par value; Authorized — 5,600 shares; Issued — 3,520 and 3,520 shares, respectively | 880 | 880 | |||||
Capital surplus | 11,907 | 11,212 | |||||
Reinvested earnings | 56,159 | 53,621 | |||||
Accumulated other comprehensive income (loss) | (3,369 | ) | (2,774 | ) | |||
Treasury stock, at cost — 1,269 and 1,257 shares, respectively | (33,308 | ) | (31,304 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 32,269 | 31,635 | |||||
Equity Attributable to Noncontrolling Interests | 360 | 286 | |||||
Total Equity | 32,629 | 31,921 | |||||
Total Liabilities and Equity | $ | 85,149 | $ | 79,974 |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Six Months Ended | |||||||
June 29, 2012 | July 1, 2011 | ||||||
As Adjusted1 | |||||||
Operating Activities | |||||||
Consolidated net income | $ | 4,867 | $ | 4,723 | |||
Depreciation and amortization | 955 | 957 | |||||
Stock-based compensation expense | 166 | 181 | |||||
Deferred income taxes | 53 | 182 | |||||
Equity (income) loss — net of dividends | (143 | ) | (26 | ) | |||
Foreign currency adjustments | (82 | ) | 88 | ||||
Significant (gains) losses on sales of assets — net | (106 | ) | (109 | ) | |||
Other operating charges | 99 | 217 | |||||
Other items | 32 | (399 | ) | ||||
Net change in operating assets and liabilities | (1,663 | ) | (2,172 | ) | |||
Net cash provided by operating activities | 4,178 | 3,642 | |||||
Investing Activities | |||||||
Purchases of short-term investments | (4,843 | ) | (3,901 | ) | |||
Proceeds from disposals of short-term investments | 1,092 | 2,908 | |||||
Acquisitions and investments | (756 | ) | (260 | ) | |||
Purchases of other investments | (3,778 | ) | (7 | ) | |||
Proceeds from disposals of bottling companies and other investments | 957 | 395 | |||||
Purchases of property, plant and equipment | (1,305 | ) | (1,190 | ) | |||
Proceeds from disposals of property, plant and equipment | 57 | 46 | |||||
Other investing activities | 16 | (319 | ) | ||||
Net cash provided by (used in) investing activities | (8,560 | ) | (2,328 | ) | |||
Financing Activities | |||||||
Issuances of debt | 21,964 | 12,699 | |||||
Payments of debt | (18,101 | ) | (9,963 | ) | |||
Issuances of stock | 995 | 802 | |||||
Purchases of stock for treasury | (2,610 | ) | (1,371 | ) | |||
Dividends | (1,155 | ) | (2,143 | ) | |||
Other financing activities | 55 | 6 | |||||
Net cash provided by (used in) financing activities | 1,148 | 30 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (232 | ) | 305 | ||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | (3,466 | ) | 1,649 | ||||
Balance at beginning of period | 12,803 | 8,517 | |||||
Balance at end of period | $ | 9,337 | $ | 10,166 |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss)1 | Income (Loss) Before Income Taxes1 | |||||||||||||||||||||||||||||||
June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 840 | $ | 804 | 5 | $ | 347 | $ | 330 | 5 | $ | 357 | $ | 330 | 8 | ||||||||||||||||||
Europe | 1,487 | 1,639 | (9 | ) | 897 | 973 | (8 | ) | 916 | 995 | (8 | ) | |||||||||||||||||||||
Latin America | 1,145 | 1,133 | 1 | 686 | 674 | 2 | 687 | 674 | 2 | ||||||||||||||||||||||||
North America | 5,797 | 5,504 | 5 | 756 | 739 | 2 | 761 | 742 | 3 | ||||||||||||||||||||||||
Pacific | 1,715 | 1,597 | 7 | 823 | 718 | 15 | 821 | 718 | 14 | ||||||||||||||||||||||||
Bottling Investments | 2,497 | 2,443 | 2 | 90 | 105 | (15 | ) | 312 | 305 | 2 | |||||||||||||||||||||||
Corporate | 52 | 63 | (18 | ) | (305 | ) | (360 | ) | 15 | (231 | ) | 35 | — | ||||||||||||||||||||
Eliminations | (448 | ) | (446 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 13,085 | $ | 12,737 | 3 | $ | 3,294 | $ | 3,179 | 4 | $ | 3,623 | $ | 3,799 | (5 | ) |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $63 million for Eurasia and Africa, $173 million for Europe, $62 million for Latin America, $8 million for North America, $121 million for Pacific and $21 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $48 million for North America, $16 million for Bottling Investments and $5 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for Europe due to the refinement of previously established accruals related to the Company's 2008-2011 productivity initiatives. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $6 million for North America due to costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the U.S. for use on citrus products, in orange juice imported from Brazil for distribution in the U.S. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. |
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the period at a per share amount greater than the carrying amount of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by $3 million for Eurasia and Africa, $6 million for Europe, $2 million for Latin America, $3 million for Pacific and was increased by $3 million for Corporate due to changes in the structure of Beverage Partners Worldwide ("BPW"), our 50/50 joint venture with Nestlé S.A. ("Nestlé") in the ready-to-drink tea category. |
• | Income (loss) before income taxes was reduced by a net $1 million for Bottling Investments. This net reduction primarily represents the Company's proportionate share of restructuring charges recorded by certain of our equity method investees, partially offset by our proportionate share of a transaction gain recorded by an equity method investee. |
• | Intersegment revenues were $56 million for Eurasia and Africa, $193 million for Europe, $69 million for Latin America, $8 million for North America, $97 million for Pacific and $23 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $8 million for Eurasia and Africa, $2 million for Europe, $1 million for Latin America, $66 million for North America, $23 million for Bottling Investments and $47 million for Corporate, primarily due to the Company’s productivity, integration and restructuring initiatives as well as costs associated with the merger of Embotelladoras Arca, S.A.B. de C.V. ("Arca") and Grupo Continental S.A.B. ("Contal"). |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended (continued) |
• | Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Pacific due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. |
• | Income (loss) before income taxes was increased by a net $417 million for Corporate, primarily due to the gain the Company recognized as a result of the merger of Arca and Contal. |
• | Income (loss) before income taxes was reduced by $38 million for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. |
• | Income (loss) before income taxes was increased by $1 million for Corporate due to the net gain we recognized on the repurchase of certain long-term debt assumed in connection with our acquisition of CCE's former North America business. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss)1 | Income (Loss) Before Income Taxes1 | |||||||||||||||||||||||||||||||
June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | June 29, 2012 | July 1, 2011 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 1,524 | $ | 1,460 | 4 | $ | 642 | $ | 595 | 8 | $ | 653 | $ | 598 | 9 | ||||||||||||||||||
Europe | 2,691 | 2,863 | (6 | ) | 1,592 | 1,687 | (6 | ) | 1,624 | 1,715 | (5 | ) | |||||||||||||||||||||
Latin America | 2,331 | 2,287 | 2 | 1,430 | 1,390 | 3 | 1,430 | 1,402 | 2 | ||||||||||||||||||||||||
North America | 10,718 | 10,191 | 5 | 1,207 | 1,203 | 0 | 1,228 | 1,206 | 2 | ||||||||||||||||||||||||
Pacific | 3,094 | 2,826 | 9 | 1,396 | 1,161 | 20 | 1,392 | 1,162 | 20 | ||||||||||||||||||||||||
Bottling Investments | 4,600 | 4,350 | 6 | 125 | 113 | 10 | 481 | 434 | 11 | ||||||||||||||||||||||||
Corporate | 82 | 91 | (10 | ) | (589 | ) | (686 | ) | 14 | (460 | ) | (202 | ) | (128 | ) | ||||||||||||||||||
Eliminations | (818 | ) | (814 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 24,222 | $ | 23,254 | 4 | $ | 5,803 | $ | 5,463 | 6 | $ | 6,348 | $ | 6,315 | 1 |
1 | Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all prior period financial information presented herein as required. |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $97 million for Eurasia and Africa, $323 million for Europe, $121 million for Latin America, $12 million for North America, $225 million for Pacific and $40 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $109 million for North America, $31 million for Bottling Investments and $8 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $3 million for Europe due to the refinement of previously established accruals related to the Company's 2008-2011 productivity initiatives. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to changes in the Company's ready-to-drink tea strategy as a result of our current U.S. license agreement with Nestlé terminating at the end of 2012. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $12 million for North America due to costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the U.S. for use on citrus products, in orange juice imported from Brazil for distribution in the U.S. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. |
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of an equity method investee issuing additional shares of its own stock during the period at a per share amount greater than the carrying amount of the Company's per share investment. |
• | Income (loss) before income taxes was increased by a net $43 million for Bottling Investments. This net increase primarily represents the Company’s proportionate share of transaction gains recorded by an equity method investee, partially offset by our proportionate share of restructuring charges recorded by certain of our equity method investees. |
• | Income (loss) before income taxes was reduced by $3 million for Eurasia and Africa, $6 million for Europe, $2 million for Latin America and $3 million for Pacific due to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the ready-to-drink tea category. |
• | Intersegment revenues were $90 million for Eurasia and Africa, $345 million for Europe, $141 million for Latin America, $11 million for North America, $185 million for Pacific and $42 million for Bottling Investments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Six Months Ended (continued) |
• | Operating income (loss) and income (loss) before income taxes were reduced by $9 million for Eurasia and Africa, $3 million for Europe, $1 million for Latin America, $177 million for North America, $1 million for Pacific, $44 million for Bottling Investments and $74 million for Corporate, primarily due to the Company’s productivity, integration and restructuring initiatives as well as costs associated with the merger of Arca and Contal. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $83 million for Pacific due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $19 million for North America due to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business. |
• | Income (loss) before income taxes was increased by a net $417 million for Corporate, primarily due to the gain the Company recognized as a result of the merger of Arca and Contal. |
• | Income (loss) before income taxes was increased by $102 million for Corporate due to the gain on the sale of our investment in Coca-Cola Embonor S.A. (“Embonor”), a bottling partner with operations primarily in Chile. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. |
• | Income (loss) before income taxes was reduced by $38 million for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. |
• | Income (loss) before income taxes was reduced by $4 million for Bottling Investments, primarily attributable to the Company’s proportionate share of restructuring charges recorded by an equity method investee. |
• | Income (loss) before income taxes was reduced by $3 million for Corporate due to the net charge we recognized on the repurchase of certain long-term debt assumed in connection with our acquisition of CCE's former North America business. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended June 29, 2012 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 13,085 | $ | 5,224 | $ | 7,861 | 60.1 | % | $ | 4,497 | $ | 70 | $ | 3,294 | 25.2 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (15 | ) | 15 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (54 | ) | 54 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (1 | ) | (32 | ) | 31 | (18 | ) | (3 | ) | 52 | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 13,084 | $ | 5,192 | $ | 7,892 | 60.3 | % | $ | 4,479 | $ | — | $ | 3,413 | 26.1 | % | ||||||||||||||||
Three Months Ended July 1, 2011 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 12,737 | $ | 4,989 | $ | 7,748 | 60.8 | % | $ | 4,417 | $ | 152 | $ | 3,179 | 25.0 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (27 | ) | 27 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | ||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (26 | ) | 26 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | (68 | ) | 68 | |||||||||||||||||||||||||
Transaction Gains | — | — | — | — | (26 | ) | 26 | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (8 | ) | (21 | ) | 13 | (12 | ) | (5 | ) | 30 | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,729 | $ | 4,968 | $ | 7,761 | 61.0 | % | $ | 4,405 | $ | — | $ | 3,356 | 26.4 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 3 | 5 | 1 | 2 | — | 4 | ||||||||||||||||||||||||||
% Currency Impact | (4) | (3) | (5) | (4) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 7 | 8 | 6 | 6 | — | 9 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 3 | 5 | 2 | 2 | — | 2 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (4) | (3) | (4) | (4) | — | (5) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 8 | 6 | 5 | — | 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 except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 29, 2012 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share1 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 112 | $ | 245 | $ | 84 | $ | 3,623 | $ | 823 | 22.7 | % | $ | 12 | $ | 2,788 | $ | 1.21 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 15 | — | — | 15 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 54 | 20 | — | 34 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 1 | — | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains | — | — | (92 | ) | (92 | ) | (33 | ) | — | (59 | ) | (0.03 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 25 | — | (25 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Other Items | — | 11 | — | 63 | 23 | 1 | 39 | 0.02 | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 112 | $ | 257 | $ | (8 | ) | $ | 3,662 | $ | 858 | 23.4 | % | $ | 13 | $ | 2,791 | $ | 1.22 | ||||||||||||||||||
Three Months Ended July 1, 2011 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 84 | $ | 221 | $ | 362 | $ | 3,799 | $ | 992 | 26.1 | % | $ | 7 | $ | 2,800 | $ | 1.20 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 38 | 65 | 15 | — | 50 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | 26 | 9 | — | 17 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | 68 | 25 | — | 43 | 0.02 | |||||||||||||||||||||||||||||
Transaction Gains | — | — | (417 | ) | (391 | ) | (172 | ) | — | (219 | ) | (0.09 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (16 | ) | — | 16 | 0.01 | ||||||||||||||||||||||||||||
Other Items | 1 | — | — | 29 | 11 | — | 18 | 0.01 | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 85 | $ | 221 | $ | (17 | ) | $ | 3,596 | $ | 864 | 24.0 | % | $ | 7 | $ | 2,725 | $ | 1.17 | ||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share | ||||||||||||||||||||||||||||||
% Change — Reported (GAAP) | 33 | 11 | — | (5) | (17) | 71 | 0 | 1 | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 32 | 16 | — | 2 | (1) | 86 | 2 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 2,296 million average shares outstanding — diluted |
2 | 2,330 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) | ||||||||||||||||||||||||||||||||
Six Months Ended June 29, 2012 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 24,222 | $ | 9,572 | $ | 14,650 | 60.5 | % | $ | 8,678 | $ | 169 | $ | 5,803 | 24.0 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (30 | ) | 30 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (118 | ) | 118 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 3 | (3 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 1 | (2 | ) | 3 | (2 | ) | (24 | ) | 29 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 24,223 | $ | 9,570 | $ | 14,653 | 60.5 | % | $ | 8,676 | $ | — | $ | 5,977 | 24.7 | % | ||||||||||||||||
Six Months Ended July 1, 2011 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 23,254 | $ | 8,937 | $ | 14,317 | 61.6 | % | $ | 8,493 | $ | 361 | $ | 5,463 | 23.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (61 | ) | 61 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | ||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (54 | ) | 54 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | (19 | ) | 19 | — | (168 | ) | 187 | ||||||||||||||||||||||||
Transaction Gains | — | — | — | — | (26 | ) | 26 | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 20 | 5 | 15 | (6 | ) | (52 | ) | 73 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 23,274 | $ | 8,923 | $ | 14,351 | 61.7 | % | $ | 8,487 | $ | — | $ | 5,864 | 25.2 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 4 | 7 | 2 | 2 | — | 6 | ||||||||||||||||||||||||||
% Currency Impact | (3) | (2) | (3) | (3) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 7 | 9 | 6 | 5 | — | 11 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 4 | 7 | 2 | 2 | — | 2 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (3) | (2) | (3) | (3) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 9 | 5 | 5 | — | 6 |
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) | |||||||||||||||||||||||||||||||||||||
Six Months Ended June 29, 2012 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share1 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 200 | $ | 385 | $ | 133 | $ | 6,348 | $ | 1,481 | 23.3 | % | $ | 25 | $ | 4,842 | $ | 2.11 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 30 | — | — | 30 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 118 | 44 | — | 74 | 0.03 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (3 | ) | (1 | ) | — | (2 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | (43 | ) | — | (43 | ) | (3 | ) | — | (40 | ) | (0.02 | ) | ||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains | — | — | (92 | ) | (92 | ) | (33 | ) | — | (59 | ) | (0.03 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 33 | — | (33 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Other Items | — | 14 | — | 43 | 16 | — | 27 | 0.01 | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 200 | $ | 356 | $ | 41 | $ | 6,401 | $ | 1,537 | 24.0 | % | $ | 25 | $ | 4,839 | $ | 2.11 | |||||||||||||||||||
Six Months Ended July 1, 2011 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 197 | $ | 355 | $ | 479 | $ | 6,315 | $ | 1,592 | 25.2 | % | $ | 20 | $ | 4,703 | $ | 2.02 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 38 | 99 | 20 | — | 79 | 0.03 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | 54 | 18 | — | 36 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | 4 | — | 4 | 1 | — | 3 | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | 187 | 70 | — | 117 | 0.05 | |||||||||||||||||||||||||||||
Transaction Gains | — | — | (519 | ) | (493 | ) | (208 | ) | — | (285 | ) | (0.12 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (19 | ) | — | 19 | 0.01 | ||||||||||||||||||||||||||||
Other Items | (3 | ) | — | — | 76 | 26 | — | 50 | 0.02 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 194 | $ | 359 | $ | (2 | ) | $ | 6,242 | $ | 1,500 | 24.0 | % | $ | 20 | $ | 4,722 | $ | 2.03 | ||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Net income attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share | ||||||||||||||||||||||||||||||
% Change — Reported (GAAP) | 2 | 8 | — | 1 | (7) | 25 | 3 | 4 | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 3 | (1) | — | 3 | 2 | 25 | 2 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 2,298 million average shares outstanding — diluted |
2 | 2,330 million average shares outstanding — diluted |
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 June 29, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 347 | $ | 897 | $ | 686 | $ | 756 | $ | 823 | $ | 90 | $ | (305 | ) | $ | 3,294 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 16 | — | 15 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | — | 48 | — | — | 5 | 54 | |||||||||||||||||||||||||
Productivity Initiatives | — | (2 | ) | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | 28 | — | 23 | 1 | 52 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 347 | $ | 895 | $ | 686 | $ | 832 | $ | 823 | $ | 129 | $ | (299 | ) | $ | 3,413 | ||||||||||||||||
Three Months Ended July 1, 2011 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 330 | $ | 973 | $ | 674 | $ | 739 | $ | 718 | $ | 105 | $ | (360 | ) | $ | 3,179 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | 4 | — | — | — | — | 23 | — | 27 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Productivity Initiatives | 4 | 2 | 1 | — | — | — | 19 | 26 | |||||||||||||||||||||||||
CCE Transaction | — | — | — | 66 | — | — | 2 | 68 | |||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | 26 | 26 | |||||||||||||||||||||||||
Other Items | — | — | — | 31 | 4 | (1 | ) | (4 | ) | 30 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 338 | $ | 975 | $ | 675 | $ | 836 | $ | 722 | $ | 127 | $ | (317 | ) | $ | 3,356 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 5 | (8) | 2 | 2 | 15 | (15) | 15 | 4 | |||||||||||||||||||||||||
% Currency Impact | (12) | (5) | (12) | 0 | 2 | (19) | 0 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 17 | (2) | 13 | 3 | 13 | 4 | 15 | 9 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 3 | (8) | 2 | (1) | 14 | 1 | 6 | 2 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (12) | (5) | (12) | 0 | 2 | (18) | 2 | (5) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 15 | (3) | 13 | 0 | 12 | 19 | 4 | 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) | |||||||||||||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Six Months Ended June 29, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 642 | $ | 1,592 | $ | 1,430 | $ | 1,207 | $ | 1,396 | $ | 125 | $ | (589 | ) | $ | 5,803 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 31 | — | 30 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | — | 109 | — | — | 8 | 118 | |||||||||||||||||||||||||
Productivity Initiatives | — | (3 | ) | — | — | — | — | — | (3 | ) | |||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | 23 | — | 3 | 3 | 29 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 642 | $ | 1,589 | $ | 1,430 | $ | 1,339 | $ | 1,396 | $ | 159 | $ | (578 | ) | $ | 5,977 | ||||||||||||||||
Six Months Ended July 1, 2011 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) — As Adjusted | $ | 595 | $ | 1,687 | $ | 1,390 | $ | 1,203 | $ | 1,161 | $ | 113 | $ | (686 | ) | $ | 5,463 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | 5 | — | — | 11 | — | 44 | 1 | 61 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Productivity Initiatives | 4 | 3 | 1 | — | 1 | — | 45 | 54 | |||||||||||||||||||||||||
CCE Transaction | — | — | — | 185 | — | — | 2 | 187 | |||||||||||||||||||||||||
Transaction Gains | — | — | — | — | — | — | 26 | 26 | |||||||||||||||||||||||||
Other Items | — | — | — | (6 | ) | 83 | 2 | (6 | ) | 73 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 604 | $ | 1,690 | $ | 1,391 | $ | 1,393 | $ | 1,245 | $ | 159 | $ | (618 | ) | $ | 5,864 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 8 | (6) | 3 | 0 | 20 | 10 | 14 | 6 | |||||||||||||||||||||||||
% Currency Impact | (10) | (3) | (9) | 0 | 4 | (19) | (1) | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 18 | (2) | 12 | 1 | 17 | 30 | 15 | 11 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 6 | (6) | 3 | (4) | 12 | 0 | 7 | 2 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (10) | (3) | (9) | 0 | 3 | (15) | 0 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 17 | (3) | 12 | (4) | 9 | 15 | 6 | 6 |
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) | |||||||||||||
Bottling Investments Segment Information: | |||||||||||||
Three Months Ended June 29, 2012 | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
Reported (GAAP) | $ | 2,497 | $ | 710 | $ | 90 | |||||||
Items Impacting Comparability: | |||||||||||||
Asset Impairments/Restructuring | — | — | 16 | ||||||||||
Other Items | — | — | 23 | ||||||||||
After Considering Items (Non-GAAP) | $ | 2,497 | $ | 710 | $ | 129 | |||||||
Three Months Ended July 1, 2011 | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
Reported (GAAP) — As Adjusted | $ | 2,443 | $ | 698 | $ | 105 | |||||||
Items Impacting Comparability: | |||||||||||||
Asset Impairments/Restructuring | — | — | 23 | ||||||||||
Other Items | — | — | (1 | ) | |||||||||
After Considering Items (Non-GAAP) | $ | 2,443 | $ | 698 | $ | 127 | |||||||
Currency Neutral and Structural for Bottling Investments: | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
% Change — Reported (GAAP) | 2 | 2 | (15) | ||||||||||
% Currency Impact | (9) | (9) | (19) | ||||||||||
% Change — Currency Neutral Reported | 12 | 10 | 4 | ||||||||||
% Structural Impact | 2 | 2 | (2) | ||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 9 | 8 | 6 | ||||||||||
% Change — After Considering Items (Non-GAAP) | 2 | 2 | 1 | ||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (9) | (9) | (18) | ||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 12 | 10 | 19 | ||||||||||
% Structural Impact After Considering Items (Non-GAAP) | 2 | 2 | (2) | ||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 9 | 8 | 21 |
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) | |||||||||||||
Bottling Investments Segment Information: | |||||||||||||
Six Months Ended June 29, 2012 | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
Reported (GAAP) | $ | 4,600 | $ | 1,387 | $ | 125 | |||||||
Items Impacting Comparability: | |||||||||||||
Asset Impairments/Restructuring | — | — | 31 | ||||||||||
Other Items | — | — | 3 | ||||||||||
After Considering Items (Non-GAAP) | $ | 4,600 | $ | 1,387 | $ | 159 | |||||||
Six Months Ended July 1, 2011 | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
Reported (GAAP) — As Adjusted | $ | 4,350 | $ | 1,322 | $ | 113 | |||||||
Items Impacting Comparability: | |||||||||||||
Asset Impairments/Restructuring | — | — | 44 | ||||||||||
Other Items | — | — | 2 | ||||||||||
After Considering Items (Non-GAAP) | $ | 4,350 | $ | 1,322 | $ | 159 | |||||||
Currency Neutral and Structural for Bottling Investments: | |||||||||||||
Net operating revenues | Selling, general and administrative expenses | Operating income | |||||||||||
% Change — Reported (GAAP) | 6 | 5 | 10 | ||||||||||
% Currency Impact | (6) | (6) | (19) | ||||||||||
% Change — Currency Neutral Reported | 12 | 11 | 30 | ||||||||||
% Structural Impact | 2 | 2 | (3) | ||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 10 | 9 | 33 | ||||||||||
% Change — After Considering Items (Non-GAAP) | 6 | 5 | 0 | ||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (6) | (6) | (15) | ||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 12 | 11 | 15 | ||||||||||
% Structural Impact After Considering Items (Non-GAAP) | 2 | 2 | (2) | ||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 10 | 9 | 17 |
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) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Six Months Ended June 29, 2012 | Six Months Ended July 1, 2011 | |||||||||
Reported (GAAP): | ||||||||||
Issuances of Stock | $ | 995 | $ | 802 | ||||||
Purchases of Stock for Treasury | (2,610 | ) | (1,371 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 29 | 1 | ||||||||
Net Change in Treasury Stock Payables2 | 16 | 201 | ||||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (1,570 | ) | $ | (367 | ) |
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. |
Consolidated Cash from Operations: | ||||||||||
Six Months Ended June 29, 2012 | Six Months Ended July 1, 2011 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP) | $ | 4,178 | $ | 3,642 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments Related to Pension Plan Contributions | 900 | 769 | ||||||||
After Considering Items (Non-GAAP) | $ | 5,078 | $ | 4,411 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | 15 | |||||||||
% Change — After Considering Items (Non-GAAP) | 15 |