![]() | 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 |
• | Second quarter volume grew 1% and year-to-date volume grew 3%. Coca-Cola Americas grew 1% and Coca-Cola International grew 2% in the quarter. |
• | Solid global volume and value share gains achieved in the quarter in total nonalcoholic ready-to-drink (NARTD) beverages as well as global volume and value share gains in sparkling and still beverages. |
• | Reported net revenues declined 3% in the second quarter and 2% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 2% in both the quarter and year to date. |
• | Reported operating income declined 2% in the second quarter and 3% year to date. Excluding the impact of structural changes, comparable currency neutral operating income grew 4% in the quarter and 5% year to date. |
• | Currency was a 2% headwind on comparable net revenues and a 3% headwind on comparable operating income in the quarter. |
• | Second quarter reported EPS was $0.59, down 3% and comparable EPS was $0.63, up 4%, including an approximate 2% currency headwind. Year-to-date reported EPS was $0.98, down 7% and comparable EPS was $1.09, up 4% despite two fewer selling days in the first half of 2013 and an approximate 4% currency headwind. |
Three Months Ended June 28, 2013 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 1 | (3) | (2) | 4 | |
Eurasia & Africa | 9 | 5 | 12 | 19 | |
Europe | (4) | (1) | (7) | (3) | |
Latin America | 2 | 6 | 6 | 13 | |
North America | (1) | (1) | (3) | — | |
Pacific | 2 | (5) | (3) | — | |
Bottling Investments | (16) | (10) | 38 | 12 |
Six Months Ended June 28, 2013 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 3 | (2) | (3) | 4 | |
Eurasia & Africa | 11 | 7 | 9 | 16 | |
Europe | (2) | (2) | (5) | (2) | |
Latin America | 3 | 5 | 4 | 11 | |
North America | — | (1) | (11) | (1) | |
Pacific | 2 | (5) | (2) | 1 | |
Bottling Investments | (12) | (7) | 31 | 39 |
• | Our Eurasia and Africa Group's volume grew 9% in the quarter and 11% year to date (up 6% and 9%, respectively, excluding the benefit of acquired volume primarily from the Aujan partnership), cycling 10% growth in the prior year quarter. All business units in the group achieved volume growth in the quarter, led by Middle East and North Africa, up 17% (up 9% excluding the benefit of acquired volume); Central, East and West Africa, up 10%, and Russia, up 3%. Reported net revenues for the quarter increased 5%, reflecting a 7% increase in concentrate sales and positive price/mix of 4%, partially offset by a 6% currency headwind. Comparable currency neutral net revenues increased 11% in the quarter. After |
• | During the quarter, Eurasia and Africa grew volume and value share in total NARTD beverages. Sparkling beverage volume grew 7% in the quarter, led by brand Coca-Cola, which also grew 7%. This growth was due to a continued focus on driving executional capabilities in the marketplace, greater consumer choice in package and price options, integrated marketing campaigns such as “Coca-Cola Crazy for Good” and “Coke with Meals”, as well as the expansion of the Coke Studio music competition. Sprite volume grew 6% in the quarter and Fanta volume grew 5% as new campaigns were launched across multiple markets. Still beverage volume grew 15% in the quarter, including the benefit of acquired brands which added eight points of volume growth to overall Eurasia and Africa still beverages. In Russia, key contributors to volume growth in the quarter were brand |
• | Our Europe Group's volume declined 4% in the quarter and 2% year to date, cycling a 4% decline in the prior year quarter. Although we grew share, the quarter was marked by particularly poor weather across many countries, including severe flooding in parts of Germany and Central Europe, as well as ongoing weakness in consumer confidence and spending across the region, which have impacted the entire NARTD beverage industry. Reported net revenues declined 1% in the quarter, reflecting a 3% decline in concentrate sales and a 2% currency headwind, partially offset by positive price/mix of 4%. Price/mix includes the benefit of consolidating the innocent juice and smoothie business starting in May 2013. Comparable currency neutral net revenues increased 1% in the quarter. After adjusting for unit case sales without concentrate sales equivalents, concentrate sales in the |
• | During the quarter, the Europe Group grew volume and value share in total NARTD beverages as well as in sparkling beverages, juices and juice drinks and energy drinks despite continued weak industry trends. In addition, we gained share in ready-to-drink tea. A key marketing campaign launched in markets throughout Europe late in the quarter, titled “Share a Coke”, placed the names of individual consumers on our iconic Coca-Cola bottles and cans. To date, the campaign has received positive consumer feedback and it has now been extended and expanded as a result. Although Germany and Northwest Europe and Nordics volume declined low single digits in the quarter, we gained volume and value share in total NARTD beverages as well as in sparkling beverages. The Iberia and Central and Southern Europe regions continue to manage through very tough macroeconomic conditions with ongoing brand-building programs and an occasion-based package, price and channel segmentation strategy. |
• | Our Latin America Group's volume grew 2% in the quarter and 3% year to date, cycling 3% growth in the prior year quarter. Volume growth in the quarter was led by Latin Center, up 7%, South Latin, up 5% and Mexico, up 1%. Brazil volume was even in the quarter, cycling 6% growth in the prior year quarter and reflecting some consumer uncertainty given the economic slowdown and protests late in the quarter. Reported net revenues for the quarter increased 6%, reflecting concentrate sales growth of 2% and positive price/mix of 9%, partially offset by a currency headwind of 5%. Comparable currency neutral net revenues increased 11% in the quarter. Reported operating income was up 6% in the quarter, with comparable currency neutral operating income up 13%, primarily reflecting volume, pricing and product mix, partially offset by increased investments in support of the 2013 FIFA Confederations Cup and upcoming 2014 FIFA World Cup. |
• | During the quarter, the Latin America Group gained share in total NARTD and sparkling beverages as well as both volume and value share in still beverages. This performance was driven by continued activation of brand and category campaigns such as “Crazy for Good” and “140 Calories”, previously launched in Brazil, Mexico and Colombia and now expanded |
• | Our North America Group's volume declined 1% in the quarter and was even year to date, cycling 1% growth in the prior year quarter. Volume was under pressure due to unseasonably cold and wet weather and the timing of the Easter and July 4th holiday periods as well as weakened consumer spending that has impacted the overall NARTD beverage industry in North America. Reported and comparable currency neutral net revenues for the quarter declined 1%, reflecting a 1% decline in “as reported” volume and even price/mix, including positive 1% price/mix for sparkling beverages. Second quarter reported operating income declined 3%. Comparable currency neutral operating income was even in the quarter, reflecting the volume performance and continued investment in our brands as well as the impact of structural changes, offset by efficient management of operating expenses. |
• | During the quarter, North America maintained volume share and grew value share in total NARTD beverages as we continued to focus on our core strategies of building strong brands, creating value with customers and enhancing system capabilities. In addition, we gained volume and value share in both sparkling and still beverages, with volume and value share gains across every still beverage category except sports drinks. Sparkling beverage volume declined 4% in the quarter with sparkling beverage price/mix growth of 1% and value share growing ahead of volume share, as we remain committed to a rational pricing environment. Still beverage volume grew 5% in the quarter, led by strong performance across both the ready-to-drink tea and packaged water categories with brands such as Gold Peak, smartwater and Dasani leading the way. Further, our volume and value share gains in the juices and juice drinks category were driven by 4% volume growth for Simply and 3% growth for Minute Maid. |
• | Our Pacific Group's volume grew 2% in both the quarter and year to date, cycling 10% growth in the prior year quarter. Reported net revenues for the quarter declined 5%, reflecting 4% concentrate sales growth, offset by a 4% decline in price/mix and a 5% currency headwind. The unfavorable price/mix in the quarter was primarily a result of geographic mix, as we cycled product launches in Japan in the prior year, as well as shifts in product and package mix within individual markets. Comparable currency neutral net revenues were even. Concentrate sales in the quarter were ahead of unit case sales due to timing, primarily in China. For the full year, we expect concentrate sales to be in line with unit case sales. Reported operating income decreased 3% in the quarter, reflecting geographic mix and a 2% currency headwind. In addition, reported operating income reflects a benefit related to structural changes. Comparable currency neutral operating income was even in the quarter. |
• | Volume growth in the quarter was wide ranging, with 28% growth in Vietnam, 22% growth in Indonesia, 17% growth in Thailand and 1% growth in both Japan and India. Volume performance was even in both China and the Philippines in the quarter. Sparkling beverage volume growth was even in the quarter, yet brand Coca-Cola grew 3% and Fanta grew 7%. Still beverages grew 4% in the quarter, with 7% growth in packaged water, 5% growth in ready-to-drink tea and 6% growth in sports drinks. Japan's sparkling beverage volume grew 1% in the quarter, supported by music-themed integrated marketing campaigns such as the “Zero Limit” campaign for Coca-Cola Zero, up 13%. India volume growth of 1% in the quarter was cycling 20% growth in the prior year quarter and reflects the impact of an earlier and heavier than normal monsoon season in 2013 and cycling a later than normal monsoon season in the prior year. Importantly we gained volume and value share in India in the quarter in total NARTD beverages as well as in both sparkling and still beverages. Our second quarter volume performance in China continued to be impacted by the economic slowdown, poor weather and competitive activity such as package upsizing. Despite this, still beverages grew 4% in the quarter, driven by juices and juice drinks and packaged water. As we look ahead to the remainder of 2013, we continue to expect the industry and our business to be impacted by China's economic slowdown. However, we are evolving our strategies in China and we anticipate a return to growth in our business in the second half of the year. |
• | Our Bottling Investments Group's (BIG) volume grew 1% in the quarter and 2% year to date after adjusting for the net impact of structural changes, primarily the deconsolidation of the Philippine bottling operations in 2013. BIG volume including the impact of structural changes was down 16% in the quarter and 12% year to date. The growth in volume in the quarter after adjusting for the impact of structural changes was led by India, with strong volume and value share gains, as well as markets within BIG's Southeast Asian operations. Reported net revenues for the quarter declined 10%. This reflects the 1% volume growth and positive price/mix of 1%, offset by a currency headwind of 1% and an 11% net impact due to structural changes. Comparable currency neutral net revenues declined 10% in the quarter. Reported operating income in the quarter grew 38%. Comparable currency neutral operating income increased 12% in the quarter, reflecting positive pricing and product mix in certain markets, partially offset by continuing 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. 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. |
• | For both North America and Bottling Investments Group, net revenue growth attributable to volume reflects the percentage change in “as reported” volume, which is based on as reported sales rather than average daily sales and includes the impact of structural changes, where applicable. For North America, this volume represents Coca-Cola Refreshments' unit case sales (which are equivalent to concentrate sales) plus concentrate sales to non-Company-owned bottling operations. |
• | Year-to-date 2013 financial results were impacted by two fewer selling days, and fourth quarter 2013 financial results will be impacted by one additional selling day. 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. |
• | In January 2012, the Company announced that Beverage Partners Worldwide (BPW), our joint venture with Nestlé in the ready-to-drink tea category, will focus its geographic scope primarily in Europe and Canada. The joint venture was phased out in all other territories by the end of 2012, and the Company's agreement to distribute products in the United States terminated at the end of 2012. We have eliminated the BPW and Nestlé licensed volume |
• | As previously announced, effective January 1, 2013, the Company transferred our India and South West Asia business unit from the Eurasia and Africa operating segment to the Pacific operating segment. The countries included in our India and South West Asia business unit are Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka. This change in organizational structure did not impact the other geographic operating segments, Bottling Investments or Corporate. The reclassified historical operating segment data reflecting the change in organizational structure was disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission on March 21, 2013. |
• | 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 28, 2013 | June 29, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 12,749 | $ | 13,085 | (3) | ||||
Cost of goods sold | 4,989 | 5,224 | (5) | ||||||
Gross Profit | 7,760 | 7,861 | (1) | ||||||
Selling, general and administrative expenses | 4,385 | 4,497 | (3) | ||||||
Other operating charges | 132 | 70 | 90 | ||||||
Operating Income | 3,243 | 3,294 | (2) | ||||||
Interest income | 129 | 112 | 16 | ||||||
Interest expense | 122 | 112 | 9 | ||||||
Equity income (loss) — net | 246 | 245 | 1 | ||||||
Other income (loss) — net | 29 | 84 | (67) | ||||||
Income Before Income Taxes | 3,525 | 3,623 | (3) | ||||||
Income taxes | 831 | 823 | 1 | ||||||
Consolidated Net Income | 2,694 | 2,800 | (4) | ||||||
Less: Net income attributable to noncontrolling interests | 18 | 12 | 56 | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,676 | $ | 2,788 | (4) | ||||
Diluted Net Income Per Share2 | $ | 0.59 | $ | 0.61 | (3) | ||||
Average Shares Outstanding — Diluted2 | 4,527 | 4,592 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended June 28, 2013, and June 29, 2012, basic net income per share was $0.60 for 2013 and $0.62 for 2012 based on average shares outstanding — basic of 4,446 for 2013 and 4,511 for 2012. 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 28, 2013 | June 29, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 23,784 | $ | 24,222 | (2) | ||||
Cost of goods sold | 9,313 | 9,572 | (3) | ||||||
Gross Profit | 14,471 | 14,650 | (1) | ||||||
Selling, general and administrative expenses | 8,567 | 8,678 | (1) | ||||||
Other operating charges | 253 | 169 | 50 | ||||||
Operating Income | 5,651 | 5,803 | (3) | ||||||
Interest income | 245 | 227 | 8 | ||||||
Interest expense | 224 | 200 | 12 | ||||||
Equity income (loss) — net | 333 | 385 | (13) | ||||||
Other income (loss) — net | (136 | ) | 133 | N/A | |||||
Income Before Income Taxes | 5,869 | 6,348 | (8) | ||||||
Income taxes | 1,406 | 1,481 | (5) | ||||||
Consolidated Net Income | 4,463 | 4,867 | (8) | ||||||
Less: Net income attributable to noncontrolling interests | 36 | 25 | 43 | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 4,427 | $ | 4,842 | (9) | ||||
Diluted Net Income Per Share2 | $ | 0.98 | $ | 1.05 | (7) | ||||
Average Shares Outstanding — Diluted2 | 4,528 | 4,596 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the six months ended June 28, 2013, and June 29, 2012, basic net income per share was $0.99 for 2013 and $1.07 for 2012 based on average shares outstanding — basic of 4,450 for 2013 and 4,518 for 2012. 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 28, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 9,406 | $ | 8,442 | |||
Short-term investments | 6,634 | 5,017 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 16,040 | 13,459 | |||||
Marketable securities | 3,173 | 3,092 | |||||
Trade accounts receivable, less allowances of $55 and $53, respectively | 5,516 | 4,759 | |||||
Inventories | 3,643 | 3,264 | |||||
Prepaid expenses and other assets | 3,055 | 2,781 | |||||
Assets held for sale | 1,145 | 2,973 | |||||
Total Current Assets | 32,572 | 30,328 | |||||
Equity Method Investments | 9,511 | 9,216 | |||||
Other Investments, Principally Bottling Companies | 1,318 | 1,232 | |||||
Other Assets | 3,855 | 3,585 | |||||
Property, Plant and Equipment — Net | 14,549 | 14,476 | |||||
Trademarks With Indefinite Lives | 6,541 | 6,527 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,410 | 7,405 | |||||
Goodwill | 12,657 | 12,255 | |||||
Other Intangible Assets | 1,098 | 1,150 | |||||
Total Assets | $ | 89,511 | $ | 86,174 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,047 | $ | 8,680 | |||
Loans and notes payable | 18,314 | 16,297 | |||||
Current maturities of long-term debt | 3,193 | 1,577 | |||||
Accrued income taxes | 447 | 471 | |||||
Liabilities held for sale | 468 | 796 | |||||
Total Current Liabilities | 32,469 | 27,821 | |||||
Long-Term Debt | 14,179 | 14,736 | |||||
Other Liabilities | 4,934 | 5,468 | |||||
Deferred Income Taxes | 5,298 | 4,981 | |||||
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 | 11,990 | 11,379 | |||||
Reinvested earnings | 59,978 | 58,045 | |||||
Accumulated other comprehensive income (loss) | (4,083 | ) | (3,385 | ) | |||
Treasury stock, at cost — 2,606 and 2,571 shares, respectively | (37,422 | ) | (35,009 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 32,223 | 32,790 | |||||
Equity Attributable to Noncontrolling Interests | 408 | 378 | |||||
Total Equity | 32,631 | 33,168 | |||||
Total Liabilities and Equity | $ | 89,511 | $ | 86,174 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Six Months Ended | |||||||
June 28, 2013 | June 29, 2012 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 4,463 | $ | 4,867 | |||
Depreciation and amortization | 947 | 955 | |||||
Stock-based compensation expense | 92 | 166 | |||||
Deferred income taxes | 100 | 53 | |||||
Equity (income) loss — net of dividends | (132 | ) | (143 | ) | |||
Foreign currency adjustments | 159 | (82 | ) | ||||
Significant (gains) losses on sales of assets — net | (23 | ) | (106 | ) | |||
Other operating charges | 83 | 99 | |||||
Other items | 22 | 32 | |||||
Net change in operating assets and liabilities | (1,755 | ) | (1,663 | ) | |||
Net cash provided by operating activities | 3,956 | 4,178 | |||||
Investing Activities | |||||||
Purchases of investments | (7,077 | ) | (8,617 | ) | |||
Proceeds from disposals of investments | 5,224 | 2,038 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (308 | ) | (755 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 690 | 11 | |||||
Purchases of property, plant and equipment | (1,069 | ) | (1,305 | ) | |||
Proceeds from disposals of property, plant and equipment | 57 | 57 | |||||
Other investing activities | (225 | ) | 11 | ||||
Net cash provided by (used in) investing activities | (2,708 | ) | (8,560 | ) | |||
Financing Activities | |||||||
Issuances of debt | 22,779 | 21,964 | |||||
Payments of debt | (19,454 | ) | (18,101 | ) | |||
Issuances of stock | 951 | 995 | |||||
Purchases of stock for treasury | (2,978 | ) | (2,610 | ) | |||
Dividends | (1,249 | ) | (1,155 | ) | |||
Other financing activities | 87 | 55 | |||||
Net cash provided by (used in) financing activities | 136 | 1,148 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (420 | ) | (232 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 964 | (3,466 | ) | ||||
Balance at beginning of period | 8,442 | 12,803 | |||||
Balance at end of period | $ | 9,406 | $ | 9,337 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 765 | $ | 728 | 5 | $ | 332 | $ | 296 | 12 | $ | 351 | $ | 307 | 15 | ||||||||||||||||||
Europe | 1,468 | 1,487 | (1 | ) | 836 | 897 | (7 | ) | 869 | 916 | (5 | ) | |||||||||||||||||||||
Latin America | 1,215 | 1,145 | 6 | 726 | 686 | 6 | 730 | 687 | 6 | ||||||||||||||||||||||||
North America | 5,713 | 5,797 | (1 | ) | 731 | 756 | (3 | ) | 732 | 761 | (4 | ) | |||||||||||||||||||||
Pacific | 1,730 | 1,827 | (5 | ) | 847 | 874 | (3 | ) | 853 | 871 | (2 | ) | |||||||||||||||||||||
Bottling Investments | 2,238 | 2,497 | (10 | ) | 125 | 90 | 38 | 354 | 312 | 13 | |||||||||||||||||||||||
Corporate | 53 | 52 | 4 | (354 | ) | (305 | ) | (16 | ) | (364 | ) | (231 | ) | (58 | ) | ||||||||||||||||||
Eliminations | (433 | ) | (448 | ) | 3 | — | — | N/A | — | — | N/A | ||||||||||||||||||||||
Consolidated | $ | 12,749 | $ | 13,085 | (3 | ) | $ | 3,243 | $ | 3,294 | (2 | ) | $ | 3,525 | $ | 3,623 | (3 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $175 million for Europe, $76 million for Latin America, $5 million for North America, $157 million for Pacific and $20 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $6 million for Europe, $55 million for North America, $6 million for Pacific, $20 million for Bottling Investments and $46 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 $1 million for Pacific and $1 million for Corporate 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 Corporate due to transaction costs associated with certain of the Company's bottling partners. |
• | Income (loss) before income taxes was reduced by $144 million for Corporate due to charges related to the pending merger of four of the Company's Japanese bottling partners. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA") issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
• | Income (loss) before income taxes was reduced by a net $3 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended (continued) |
• | Intersegment revenues were $173 million for Europe, $62 million for Latin America, $8 million for North America, $184 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. |
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value 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 due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | June 28, 2013 | June 29, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 1,434 | $ | 1,343 | 7 | $ | 614 | $ | 562 | 9 | $ | 640 | $ | 573 | 12 | ||||||||||||||||||
Europe | 2,645 | 2,691 | (2 | ) | 1,519 | 1,592 | (5 | ) | 1,563 | 1,624 | (4 | ) | |||||||||||||||||||||
Latin America | 2,443 | 2,331 | 5 | 1,489 | 1,430 | 4 | 1,494 | 1,430 | 4 | ||||||||||||||||||||||||
North America | 10,600 | 10,718 | (1 | ) | 1,072 | 1,207 | (11 | ) | 1,074 | 1,228 | (12 | ) | |||||||||||||||||||||
Pacific | 3,120 | 3,275 | (5 | ) | 1,449 | 1,476 | (2 | ) | 1,457 | 1,472 | (1 | ) | |||||||||||||||||||||
Bottling Investments | 4,276 | 4,600 | (7 | ) | 164 | 125 | 31 | 463 | 481 | (4 | ) | ||||||||||||||||||||||
Corporate | 97 | 82 | 19 | (656 | ) | (589 | ) | (11 | ) | (822 | ) | (460 | ) | (79 | ) | ||||||||||||||||||
Eliminations | (831 | ) | (818 | ) | (2 | ) | — | — | N/A | — | — | N/A | |||||||||||||||||||||
Consolidated | $ | 23,784 | $ | 24,222 | (2 | ) | $ | 5,651 | $ | 5,803 | (3 | ) | $ | 5,869 | $ | 6,348 | (8 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $332 million for Europe, $147 million for Latin America, $9 million for North America, $303 million for Pacific and $40 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $6 million for Europe, $137 million for North America, $14 million for Pacific, $41 million for Bottling Investments and $56 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 $1 million for Pacific and $1 million for Corporate 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 increased by $3 million for North America due to the refinement of previously established accruals related to the loss or damage of certain fixed assets as a result of Hurricane Sandy. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to transaction costs associated with certain of the Company's bottling partners. |
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee which has operations in Venezuela. |
• | Income (loss) before income taxes was reduced by $144 million for Corporate due to charges related to the pending merger of four of the Company's Japanese bottling partners. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by a net $33 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
• | Income (loss) before income taxes was increased by $1 million for Corporate due to an adjustment to the Company's loss on the sale of a controlling ownership interest in our previously consolidated Philippine bottling operations to Coca-Cola FEMSA. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Six Months Ended (continued) |
• | Intersegment revenues were $323 million for Europe, $121 million for Latin America, $12 million for North America, $322 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 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. |
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was increased by a net $43 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items 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. |
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 28, 2013 | ||||||||||||||||||||||||||||||||
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) | $ | 12,749 | $ | 4,989 | $ | 7,760 | 60.9 | % | $ | 4,385 | $ | 132 | $ | 3,243 | 25.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (20 | ) | 20 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (113 | ) | 113 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | (5 | ) | (1 | ) | 6 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (1 | ) | (38 | ) | 37 | (1 | ) | — | 38 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,748 | $ | 4,951 | $ | 7,797 | 61.2 | % | $ | 4,379 | $ | — | $ | 3,418 | 26.8 | % | ||||||||||||||||
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 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
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 | % | ||||||||||||||||
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) | (3) | 90 | (2) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (2) | (2) | (1) | N/A | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | (1) | (3) | 1 | (1) | N/A | 2 | ||||||||||||||||||||||||||
% Structural Impact | (2) | (3) | (1) | (2) | N/A | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 2 | — | 2 | 1 | N/A | 2 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (3) | (5) | (1) | (2) | N/A | — | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (2) | (2) | (1) | N/A | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (3) | 1 | (1) | N/A | 4 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (2) | (3) | (1) | (2) | N/A | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 2 | — | 2 | 1 | N/A | 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 except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||||||
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) | $ | 122 | $ | 246 | $ | 29 | $ | 3,525 | $ | 831 | 23.5 | % | $ | 18 | $ | 2,676 | $ | 0.59 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 20 | — | — | 20 | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 113 | 38 | — | 75 | 0.02 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 3 | — | 3 | — | — | 3 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | 11 | (48 | ) | — | 59 | 0.01 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||||||||
Other Items | (23 | ) | — | — | 61 | 23 | — | 38 | 0.01 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 99 | $ | 249 | $ | 34 | $ | 3,731 | $ | 844 | 22.6 | % | $ | 18 | $ | 2,869 | $ | 0.63 | |||||||||||||||||||
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 share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 112 | $ | 245 | $ | 84 | $ | 3,623 | $ | 823 | 22.7 | % | $ | 12 | $ | 2,788 | $ | 0.61 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 15 | — | — | 15 | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 54 | 20 | — | 34 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 1 | — | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (92 | ) | (92 | ) | (33 | ) | — | (59 | ) | (0.01 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 25 | — | (25 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Other Items | — | 11 | — | 63 | 23 | 1 | 39 | 0.01 | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 112 | $ | 257 | $ | (8 | ) | $ | 3,662 | $ | 858 | 23.4 | % | $ | 13 | $ | 2,791 | $ | 0.61 | ||||||||||||||||||
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) | 9 | 1 | (67) | (3) | 1 | 56 | (4) | (3) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (12) | (3) | N/A | 2 | (1) | 42 | 3 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,527 million average shares outstanding — diluted |
2 | 4,592 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 28, 2013 | ||||||||||||||||||||||||||||||||
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) | $ | 23,784 | $ | 9,313 | $ | 14,471 | 60.8 | % | $ | 8,567 | $ | 253 | $ | 5,651 | 23.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (41 | ) | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (215 | ) | 215 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | (5 | ) | (2 | ) | 7 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 3 | (113 | ) | 116 | (4 | ) | 3 | 117 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 23,787 | $ | 9,200 | $ | 14,587 | 61.3 | % | $ | 8,558 | $ | — | $ | 6,029 | 25.3 | % | ||||||||||||||||
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 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
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 | % | ||||||||||||||||
Currency Neutral: | Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (2) | (3) | (1) | (1) | 50 | (3) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (2) | (2) | (1) | N/A | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | — | (1) | 1 | — | N/A | 1 | ||||||||||||||||||||||||||
% Structural Impact | (2) | (3) | (1) | (1) | N/A | — | ||||||||||||||||||||||||||
% Change - Currency Neutral Reported and Adjusted for Structural Items | 2 | 1 | 2 | 1 | N/A | 1 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (4) | — | (1) | N/A | 1 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (2) | (2) | (1) | N/A | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | — | (2) | 2 | — | N/A | 4 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (2) | (3) | (1) | (1) | N/A | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 2 | — | 3 | 1 | N/A | 5 |
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 28, 2013 | |||||||||||||||||||||||||||||||||||||
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) | $ | 224 | $ | 333 | $ | (136 | ) | $ | 5,869 | $ | 1,406 | 23.9 | % | $ | 36 | $ | 4,427 | $ | 0.98 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 41 | — | — | 41 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 215 | 78 | — | 137 | 0.03 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 33 | — | 33 | 3 | — | 30 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 4 | 11 | (52 | ) | — | 63 | 0.01 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other Items | (23 | ) | 9 | 140 | 289 | 51 | — | 238 | 0.05 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 201 | $ | 375 | $ | 8 | $ | 6,456 | $ | 1,485 | 23.0 | % | $ | 36 | $ | 4,935 | $ | 1.09 | |||||||||||||||||||
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 share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 200 | $ | 385 | $ | 133 | $ | 6,348 | $ | 1,481 | 23.3 | % | $ | 25 | $ | 4,842 | $ | 1.05 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 30 | — | — | 30 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 118 | 44 | — | 74 | 0.02 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (3 | ) | (1 | ) | — | (2 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | (43 | ) | — | (43 | ) | (3 | ) | — | (40 | ) | (0.01 | ) | ||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (92 | ) | (92 | ) | (33 | ) | — | (59 | ) | (0.01 | ) | ||||||||||||||||||||||||
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 | $ | 1.05 | |||||||||||||||||||
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) | 12 | (13) | N/A | (8) | (5) | 43 | (9) | (7) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | — | 5 | N/A | 1 | (3) | 42 | 2 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,528 million average shares outstanding — diluted |
2 | 4,596 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 28, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 332 | $ | 836 | $ | 726 | $ | 731 | $ | 847 | $ | 125 | $ | (354 | ) | $ | 3,243 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 20 | — | 20 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 6 | — | 55 | 6 | — | 46 | 113 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 6 | 6 | |||||||||||||||||||||||||
Other Items | — | — | — | 41 | — | (1 | ) | (2 | ) | 38 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 332 | $ | 842 | $ | 726 | $ | 827 | $ | 852 | $ | 144 | $ | (305 | ) | $ | 3,418 | ||||||||||||||||
Three Months Ended June 29, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 296 | $ | 897 | $ | 686 | $ | 756 | $ | 874 | $ | 90 | $ | (305 | ) | $ | 3,294 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 16 | — | 15 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | — | 48 | — | — | 5 | 54 | |||||||||||||||||||||||||
Productivity Initiatives | — | (2 | ) | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | 28 | — | 23 | 1 | 52 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 296 | $ | 895 | $ | 686 | $ | 832 | $ | 874 | $ | 129 | $ | (299 | ) | $ | 3,413 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 12 | (7) | 6 | (3) | (3) | 38 | (16) | (2) | |||||||||||||||||||||||||
% Currency Impact | (7) | (3) | (8) | — | (2) | (2) | 1 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 19 | (4) | 13 | (3) | (1) | 40 | (17) | 2 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 12 | (6) | 6 | (1) | (3) | 11 | (2) | — | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (7) | (3) | (8) | — | (2) | (1) | — | (3) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 19 | (3) | 13 | — | — | 12 | (2) | 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: | |||||||||||||||||||||||||||||||||
Six Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 614 | $ | 1,519 | $ | 1,489 | $ | 1,072 | $ | 1,449 | $ | 164 | $ | (656 | ) | $ | 5,651 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 41 | — | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | 6 | — | 137 | 14 | — | 56 | 215 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||
Other Items | — | — | — | 109 | — | 7 | 1 | 117 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 616 | $ | 1,525 | $ | 1,489 | $ | 1,318 | $ | 1,462 | $ | 212 | $ | (593 | ) | $ | 6,029 | ||||||||||||||||
Six Months Ended June 29, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 562 | $ | 1,592 | $ | 1,430 | $ | 1,207 | $ | 1,476 | $ | 125 | $ | (589 | ) | $ | 5,803 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 31 | — | 30 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | — | 109 | — | — | 8 | 118 | |||||||||||||||||||||||||
Productivity Initiatives | — | (3 | ) | — | — | — | — | — | (3 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | 23 | — | 3 | 3 | 29 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 562 | $ | 1,589 | $ | 1,430 | $ | 1,339 | $ | 1,476 | $ | 159 | $ | (578 | ) | $ | 5,977 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 9 | (5) | 4 | (11) | (2) | 31 | (11) | (3) | |||||||||||||||||||||||||
% Currency Impact | (7) | (2) | (7) | — | (2) | (8) | 3 | (3) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 16 | (3) | 11 | (11) | — | 38 | (14) | 1 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 10 | (4) | 4 | (2) | (1) | 33 | (2) | 1 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (7) | (2) | (7) | — | (2) | (6) | 2 | (3) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 16 | (2) | 11 | (1) | 1 | 39 | (5) | 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) | |||||||||
Operating Expense Leverage: | |||||||||
Three Months Ended June 28, 2013 | |||||||||
Operating income | Gross profit | Operating expense leverage1 | |||||||
% Change — Reported (GAAP) | (2) | (1) | — | ||||||
% Change — Currency Neutral Reported | 2 | 1 | 1 | ||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 2 | 2 | — | ||||||
% Change — After Considering Items (Non-GAAP) | — | (1) | 1 | ||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | 1 | 3 | ||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 4 | 2 | 2 | ||||||
Six Months Ended June 28, 2013 | |||||||||
Operating income | Gross profit | Operating expense leverage1 | |||||||
% Change — Reported (GAAP) | (3) | (1) | (1) | ||||||
% Change — Currency Neutral Reported | 1 | 1 | — | ||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 1 | 2 | (1) | ||||||
% Change — After Considering Items (Non-GAAP) | 1 | — | 1 | ||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | 2 | 3 | ||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 5 | 3 | 2 |
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: | ||||||||||
Six Months Ended June 28, 2013 | Six Months Ended June 29, 2012 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 951 | $ | 995 | ||||||
Purchases of Stock for Treasury | (2,978 | ) | (2,610 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (16 | ) | 29 | |||||||
Net Change in Treasury Stock Payables2 | 36 | 16 | ||||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (2,007 | ) | $ | (1,570 | ) |
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. |