![]() | 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 |
• | Third quarter volume grew 2% and year-to-date volume grew 2%. Coca-Cola Americas grew 1% in both the quarter and year to date and Coca-Cola International grew 3% in both the quarter and year to date. |
• | Global value share gains achieved in the quarter in total nonalcoholic ready-to-drink (NARTD) beverages and in core sparkling and still beverages. |
• | Reported net revenues declined 3% in the third quarter and 2% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 4% in the quarter and 3% year to date. |
• | Reported operating income declined 12% in the third quarter and 6% year to date. Excluding the impact of structural changes, comparable currency neutral operating income grew 8% in the quarter and 6% year to date. |
• | Currency was a 2% headwind on comparable net revenues and a 5% headwind on comparable operating income in the quarter. |
• | Third quarter reported EPS was $0.54, up 8%, and comparable EPS was $0.53, up 4%, despite an approximate 5% currency headwind. Year-to-date reported EPS was $1.52, down 2%, and comparable EPS was $1.62, up 4%, despite two fewer selling days in the first nine months of 2013 and an approximate 4% currency headwind. |
Three Months Ended September 27, 2013 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 2 | (3) | (12) | 7 | |
Eurasia & Africa | 4 | (4) | (6) | 5 | |
Europe | (1) | 10 | 6 | 6 | |
Latin America | — | — | (2) | 11 | |
North America | 2 | 1 | (3) | 3 | |
Pacific | 5 | (9) | (6) | 8 | |
Bottling Investments | (18) | (17) | (48) | (11) |
Nine Months Ended September 27, 2013 | |||||
% Favorable / (Unfavorable) | |||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | ||
Total Company | 2 | (2) | (6) | 5 | |
Eurasia & Africa | 9 | 3 | 5 | 13 | |
Europe | (2) | 2 | (1) | — | |
Latin America | 2 | 3 | 2 | 11 | |
North America | — | — | (8) | — | |
Pacific | 3 | (6) | (3) | 3 | |
Bottling Investments | (14) | (10) | 10 | 25 |
• | Our Eurasia and Africa Group's volume grew 4% in the quarter and 9% year to date, cycling 11% growth in the prior year quarter. Volume growth in the third quarter was once again led by Middle East and North Africa, up 8% (up 5% excluding the benefit of acquired volume) and Central, East and West Africa, up 6%. Reported net revenues for the quarter decreased 4%, reflecting a 4% increase in concentrate sales, offset by unfavorable price/mix of 1% and a 7% currency headwind. Comparable currency neutral net revenues increased 3% in the quarter. Reported operating income decreased 6% in the quarter. Comparable currency |
• | During the quarter, Eurasia and Africa maintained volume share in total NARTD beverages and grew volume share in sparkling beverages and juice and juice drinks. Sparkling beverage volume grew 4% in the quarter, led by brand Coca-Cola, which grew 3%, as we continued to focus on driving executional capabilities in the marketplace, expanding consumer choice in package and price options focusing on affordability, and driving integrated marketing campaigns such as “Thirsty for Summer” and “Coke with Meals”. Sprite volume grew 4% in the quarter as we launched the Sprite “Obey You” campaign across many markets. Still beverage volume grew 3% in the quarter, including the benefit of acquired brands. In Russia, we gained volume and value share in core sparkling beverages, juice and juice drinks, and sports drinks, as we continued to drive strong performance in our premium sparkling and juice brands supported by a “Summer Refreshment” integrated marketing campaign across the country. Key contributors to volume growth in the quarter were brand Coca-Cola, Dobriy and Schweppes. |
• | Our Europe Group's volume declined 1% in the quarter and 2% year to date, cycling a 1% increase in the prior year quarter. The underlying macro environment in Europe continued to be volatile in the third quarter, especially in southern Europe, where unemployment remains high and consumer confidence remains low. Reported net revenues grew 10% in the quarter, reflecting even concentrate sales, positive price/mix of 8%, and a 2% currency tailwind. Price/mix includes the benefit of consolidating the innocent branded juice and smoothie business. Comparable currency neutral net revenues increased 8% in the quarter. After adjusting for unit case sales without concentrate sales equivalents, concentrate sales in the quarter were roughly in line with unit case sales. Reported operating income increased 6% in the quarter. Comparable currency neutral operating income also increased 6% in the quarter, reflecting pricing, product mix and the timing of expenses, partially offset by higher cost of goods sold and operating expenses due to the consolidation of the innocent branded juice and smoothie business. |
• | During the quarter, the Europe Group gained volume share in core sparkling and juice and juice drinks. The popular “Share a Coke” marketing campaign continued across most of Europe and was launched in Iberia in September. We saw improved performance in |
• | Our Latin America Group's volume was even in the quarter, cycling 5% growth in the prior year quarter, and grew 2% year to date. Volume in the quarter was up 5% in Latin Center and up 3% in South Latin. Brazil volume declined 1% in the quarter, cycling 6% growth in the prior year quarter, against the backdrop of a deteriorating macroeconomic environment. Mexico volume decreased 2% in the quarter, cycling strong 6% growth in the prior year quarter and reflecting both a slower economy and significant disruption caused by hurricanes Manuel and Ingrid in September. Reported net revenues for the quarter were even, reflecting a 3% decrease in concentrate sales and positive price/mix of 12%, offset by a currency headwind of 9%. Comparable currency neutral net revenues increased 10% in the quarter. Concentrate sales in the quarter lagged unit case sales primarily due to the timing of shipments. Reported operating income was down 2% in the quarter, with comparable currency neutral operating income up 11%, primarily reflecting pricing and product mix partially offset by strong marketing investments. |
• | During the quarter, the Latin America Group gained volume share in total NARTD, sparkling beverages and still beverages. This performance was driven by continued activation of campaigns such as “Coke with Meals”, “Crazy for Good”, and sponsorship of the upcoming 2014 FIFA World CupTM, as well as investments in cold-drink equipment and continued segmentation across multiple price points and package sizes. In the quarter, Sprite volume was up 3% and Fanta volume was up 1%. Still beverage volume grew 2% in the quarter, driven by growth in juice and juice drinks, sports drinks, value-added dairy and packaged water. |
• | Our North America Group's volume grew 2% in the quarter, cycling 2% growth in the prior year quarter, and was even year to date. Reported and comparable currency neutral net revenues for the quarter grew 1%, reflecting 2% growth in “as reported” volume and even price/mix, partially offset by a 1% impact from structural changes. Third quarter reported operating income declined 3%. Comparable currency neutral operating income grew 3% in the quarter, reflecting solid volume performance and the efficient management of operating expenses. |
• | During the quarter, North America gained volume and value share in NARTD beverages as we remain focused on our core strategies of building strong brands, creating value with customers and building system capabilities to sustain our success. In addition, we gained volume and value share in both sparkling and still beverages, and gained volume and value share in juice and juice drinks, packaged water, ready-to-drink tea, and energy drinks. Sparkling beverage volume was even in the quarter with sparkling beverage price/mix growth of 1% as we remain committed to a rational pricing environment. All five of our largest sparkling brands (Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite and Fanta) saw sequential improvement compared to last quarter, led by brand Coca-Cola, up 2% in the quarter. Coca-Cola Zero volume grew 5% in the quarter with strong activation around the launch of Caffeine Free Coca-Cola Zero. Still beverage volume grew 5% in the quarter, with balanced growth across all categories. Our ready-to-drink tea portfolio delivered double-digit growth in the quarter, fueled by our multi-brand strategy with growth in Gold Peak, Honest Tea and Fuze. Our portfolio of juice and juice drink brands grew volume 4% in the quarter, with the Simply trademark up 7%. Our packaged water portfolio grew volume 5% in the quarter, led by Dasani. |
• | Our Pacific Group's volume grew 5% in the quarter and 3% year to date, cycling 4% growth in the prior year quarter. Reported net revenues for the quarter declined 9%, reflecting 6% concentrate sales growth, offset by unfavorable price/mix of 3%, a 6% currency headwind, and a 6% structural impact, primarily related to the deferral of revenue and gross profit associated with the intercompany portion of concentrate sales to Coca-Cola East Japan (CCEJ) subsequent to the closing of the merger of four bottlers to create CCEJ on July 1, 2013. The unfavorable price/mix in the quarter was primarily a result of geographic mix as |
• | Volume growth in the quarter was broad based, with 21% growth in Vietnam, 9% growth in China, 8% growth in Thailand and 6% growth in India. Sparkling beverage volume growth was 5% in the quarter, led by brand Coca-Cola, up 7%, and Sprite, up 5%. Still beverage volume grew 5% in the quarter, with double-digit growth in packaged water. In India, we gained volume and value share in NARTD beverages as well as in sparkling and still beverages in the quarter. India sparkling beverage volume growth in the quarter was led by brand Coca-Cola, up 22%, and driven by strong integrated marketing campaigns and continued expansion of packaging choices to consumers. 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, which grew 6%. China's sparkling beverage volume grew 8% in the quarter, supported by our popular “Share a Coke” integrated marketing campaign, and still beverage volume grew 10%. |
• | Our Bottling Investments Group's (BIG) volume grew 8% in the quarter on a comparable basis after adjusting for the net impact of structural changes, primarily the deconsolidation of the Philippine and Brazilian bottling operations in 2013. BIG volume including the impact of structural changes was down 18% in the quarter and 14% year to date. Volume growth in the quarter after adjusting for the impact of structural changes was led by China and Germany, as well as markets within BIG's Southeast Asian operations. Reported net revenues for the quarter declined 17%. This reflects the 8% volume growth and a currency tailwind of 2%, offset by unfavorable price/mix of 2% and a 25% net impact due to structural changes. Comparable currency neutral net revenues declined 19% in the quarter. Reported operating income in the quarter declined 48%. Comparable currency neutral operating income decreased 11% in the quarter, reflecting structural changes, primarily the deconsolidation of the Philippine and Brazilian bottling operations in 2013, partially offset by the increase in revenues resulting from volume growth and positive pricing in select markets. |
• | 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 and associated concentrate sales for the year ended Dec. 31, 2012 in those countries impacted by these structural changes. |
• | As previously announced, effective Jan. 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 | |||||||||
September 27, 2013 | September 28, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 12,030 | $ | 12,340 | (3) | ||||
Cost of goods sold | 4,793 | 4,853 | (1) | ||||||
Gross Profit | 7,237 | 7,487 | (3) | ||||||
Selling, general and administrative expenses | 4,424 | 4,630 | (4) | ||||||
Other operating charges | 341 | 64 | 429 | ||||||
Operating Income | 2,472 | 2,793 | (12) | ||||||
Interest income | 136 | 118 | 15 | ||||||
Interest expense | 90 | 102 | (11) | ||||||
Equity income (loss) — net | 204 | 252 | (19) | ||||||
Other income (loss) — net | 658 | 23 | 2,906 | ||||||
Income Before Income Taxes | 3,380 | 3,084 | 10 | ||||||
Income taxes | 925 | 755 | 23 | ||||||
Consolidated Net Income | 2,455 | 2,329 | 5 | ||||||
Less: Net income attributable to noncontrolling interests | 8 | 18 | (61) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,447 | $ | 2,311 | 6 | ||||
Diluted Net Income Per Share2 | $ | 0.54 | $ | 0.50 | 8 | ||||
Average Shares Outstanding — Diluted2 | 4,498 | 4,587 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended September 27, 2013, and September 28, 2012, basic net income per share was $0.55 for 2013 and $0.51 for 2012 based on average shares outstanding — basic of 4,426 for 2013 and 4,502 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) | |||||||||
Nine Months Ended | |||||||||
September 27, 2013 | September 28, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 35,814 | $ | 36,562 | (2) | ||||
Cost of goods sold | 14,106 | 14,425 | (2) | ||||||
Gross Profit | 21,708 | 22,137 | (2) | ||||||
Selling, general and administrative expenses | 12,991 | 13,308 | (2) | ||||||
Other operating charges | 594 | 233 | 155 | ||||||
Operating Income | 8,123 | 8,596 | (6) | ||||||
Interest income | 381 | 345 | 10 | ||||||
Interest expense | 314 | 302 | 4 | ||||||
Equity income (loss) — net | 537 | 637 | (16) | ||||||
Other income (loss) — net | 522 | 156 | 236 | ||||||
Income Before Income Taxes | 9,249 | 9,432 | (2) | ||||||
Income taxes | 2,331 | 2,236 | 4 | ||||||
Consolidated Net Income | 6,918 | 7,196 | (4) | ||||||
Less: Net income attributable to noncontrolling interests | 44 | 43 | — | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 6,874 | $ | 7,153 | (4) | ||||
Diluted Net Income Per Share2 | $ | 1.52 | $ | 1.56 | (2) | ||||
Average Shares Outstanding — Diluted2 | 4,518 | 4,593 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the nine months ended September 27, 2013, and September 28, 2012, basic net income per share was $1.55 for 2013 and $1.58 for 2012 based on average shares outstanding — basic of 4,442 for 2013 and 4,513 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) | |||||||
September 27, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 11,118 | $ | 8,442 | |||
Short-term investments | 6,139 | 5,017 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 17,257 | 13,459 | |||||
Marketable securities | 3,202 | 3,092 | |||||
Trade accounts receivable, less allowances of $57 and $53, respectively | 5,116 | 4,759 | |||||
Inventories | 3,321 | 3,264 | |||||
Prepaid expenses and other assets | 2,680 | 2,781 | |||||
Assets held for sale | — | 2,973 | |||||
Total Current Assets | 31,576 | 30,328 | |||||
Equity Method Investments | 10,385 | 9,216 | |||||
Other Investments, Principally Bottling Companies | 1,150 | 1,232 | |||||
Other Assets | 4,270 | 3,585 | |||||
Property, Plant and Equipment — Net | 14,548 | 14,476 | |||||
Trademarks With Indefinite Lives | 6,608 | 6,527 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,426 | 7,405 | |||||
Goodwill | 12,412 | 12,255 | |||||
Other Intangible Assets | 1,057 | 1,150 | |||||
Total Assets | $ | 89,432 | $ | 86,174 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,590 | $ | 8,680 | |||
Loans and notes payable | 18,840 | 16,297 | |||||
Current maturities of long-term debt | 3,194 | 1,577 | |||||
Accrued income taxes | 418 | 471 | |||||
Liabilities held for sale | — | 796 | |||||
Total Current Liabilities | 33,042 | 27,821 | |||||
Long-Term Debt | 14,173 | 14,736 | |||||
Other Liabilities | 4,445 | 5,468 | |||||
Deferred Income Taxes | 5,307 | 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 | 12,122 | 11,379 | |||||
Reinvested earnings | 61,187 | 58,045 | |||||
Accumulated other comprehensive income (loss) | (4,699 | ) | (3,385 | ) | |||
Treasury stock, at cost — 2,624 and 2,571 shares, respectively | (38,238 | ) | (35,009 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 32,132 | 32,790 | |||||
Equity Attributable to Noncontrolling Interests | 333 | 378 | |||||
Total Equity | 32,465 | 33,168 | |||||
Total Liabilities and Equity | $ | 89,432 | $ | 86,174 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Nine Months Ended | |||||||
September 27, 2013 | September 28, 2012 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 6,918 | $ | 7,196 | |||
Depreciation and amortization | 1,444 | 1,469 | |||||
Stock-based compensation expense | 155 | 254 | |||||
Deferred income taxes | 179 | 156 | |||||
Equity (income) loss — net of dividends | (270 | ) | (338 | ) | |||
Foreign currency adjustments | 140 | (106 | ) | ||||
Significant (gains) losses on sales of assets — net | (670 | ) | (108 | ) | |||
Other operating charges | 331 | 98 | |||||
Other items | 137 | 61 | |||||
Net change in operating assets and liabilities | (652 | ) | (842 | ) | |||
Net cash provided by operating activities | 7,712 | 7,840 | |||||
Investing Activities | |||||||
Purchases of investments | (11,451 | ) | (11,759 | ) | |||
Proceeds from disposals of investments | 9,601 | 4,428 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (326 | ) | (1,148 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 869 | 19 | |||||
Purchases of property, plant and equipment | (1,625 | ) | (1,971 | ) | |||
Proceeds from disposals of property, plant and equipment | 64 | 73 | |||||
Other investing activities | (115 | ) | (41 | ) | |||
Net cash provided by (used in) investing activities | (2,983 | ) | (10,399 | ) | |||
Financing Activities | |||||||
Issuances of debt | 31,147 | 32,888 | |||||
Payments of debt | (27,293 | ) | (28,790 | ) | |||
Issuances of stock | 1,079 | 1,319 | |||||
Purchases of stock for treasury | (3,892 | ) | (3,619 | ) | |||
Dividends | (2,494 | ) | (2,304 | ) | |||
Other financing activities | 70 | 107 | |||||
Net cash provided by (used in) financing activities | (1,383 | ) | (399 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (670 | ) | (230 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 2,676 | (3,188 | ) | ||||
Balance at beginning of period | 8,442 | 12,803 | |||||
Balance at end of period | $ | 11,118 | $ | 9,615 |
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 | |||||||||||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 669 | $ | 698 | (4 | ) | $ | 231 | $ | 244 | (6 | ) | $ | 228 | $ | 248 | (8 | ) | |||||||||||||||
Europe | 1,420 | 1,289 | 10 | 742 | 698 | 6 | 755 | 716 | 5 | ||||||||||||||||||||||||
Latin America | 1,230 | 1,226 | — | 720 | 734 | (2 | ) | 719 | 734 | (2 | ) | ||||||||||||||||||||||
North America | 5,719 | 5,670 | 1 | 803 | 832 | (3 | ) | 805 | 838 | (4 | ) | ||||||||||||||||||||||
Pacific | 1,496 | 1,646 | (9 | ) | 575 | 613 | (6 | ) | 585 | 616 | (5 | ) | |||||||||||||||||||||
Bottling Investments | 1,832 | 2,208 | (17 | ) | 22 | 44 | (48 | ) | 214 | 269 | (20 | ) | |||||||||||||||||||||
Corporate | 27 | 26 | — | (621 | ) | (372 | ) | (67 | ) | 74 | (337 | ) | N/A | ||||||||||||||||||||
Eliminations | (363 | ) | (423 | ) | 14 | — | — | N/A | — | — | N/A | ||||||||||||||||||||||
Consolidated | $ | 12,030 | $ | 12,340 | (3 | ) | $ | 2,472 | $ | 2,793 | (12 | ) | $ | 3,380 | $ | 3,084 | 10 |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $188 million for Europe, $22 million for Latin America, $4 million for North America, $128 million for Pacific and $21 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $53 million for North America, $2 million for Pacific, $45 million for Bottling Investments and $41 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 North America due to the refinement of previously established accruals related to the Company's integration of Coca-Cola Enterprises' ("CCE") former North America business. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Pacific due to a charge associated with certain of the Company's fixed assets. |
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. |
• | Income (loss) before income taxes was increased by $30 million for Corporate due to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. |
• | Income (loss) before income taxes was increased by a net $8 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 $165 million for Europe, $55 million for Latin America, $1 million for North America, $176 million for Pacific and $26 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $48 million for North America, $1 million for Pacific, $14 million for Bottling Investments and $10 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 $5 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 $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $9 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 reduced by $1 million for Latin America, $1 million for North America, $2 million for Pacific and was increased by $1 million for Eurasia and Africa and $3 million for Europe 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 $10 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) | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | September 27, 2013 | September 28, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 2,103 | $ | 2,041 | 3 | $ | 845 | $ | 806 | 5 | $ | 868 | $ | 821 | 6 | ||||||||||||||||||
Europe | 4,065 | 3,980 | 2 | 2,261 | 2,290 | (1 | ) | 2,318 | 2,340 | (1 | ) | ||||||||||||||||||||||
Latin America | 3,673 | 3,557 | 3 | 2,209 | 2,164 | 2 | 2,213 | 2,164 | 2 | ||||||||||||||||||||||||
North America | 16,319 | 16,388 | — | 1,875 | 2,039 | (8 | ) | 1,879 | 2,066 | (9 | ) | ||||||||||||||||||||||
Pacific | 4,616 | 4,921 | (6 | ) | 2,024 | 2,089 | (3 | ) | 2,042 | 2,088 | (2 | ) | |||||||||||||||||||||
Bottling Investments | 6,108 | 6,808 | (10 | ) | 186 | 169 | 10 | 677 | 750 | (10 | ) | ||||||||||||||||||||||
Corporate | 124 | 108 | 14 | (1,277 | ) | (961 | ) | (33 | ) | (748 | ) | (797 | ) | 6 | |||||||||||||||||||
Eliminations | (1,194 | ) | (1,241 | ) | 4 | — | — | N/A | — | — | N/A | ||||||||||||||||||||||
Consolidated | $ | 35,814 | $ | 36,562 | (2 | ) | $ | 8,123 | $ | 8,596 | (6 | ) | $ | 9,249 | $ | 9,432 | (2 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $520 million for Europe, $169 million for Latin America, $13 million for North America, $431 million for Pacific and $61 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Pacific, $86 million for Bottling Investments and $97 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 North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. 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 $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Pacific due to a charge associated with certain of the Company's fixed assets. |
• | 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. |
• | 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. |
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. |
• | 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 a net $114 million for Corporate due to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. |
• | 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 $25 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) | ||||||||||||||||||
Nine Months Ended (continued) |
• | Intersegment revenues were $488 million for Europe, $176 million for Latin America, $13 million for North America, $498 million for Pacific and $66 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $157 million for North America, $1 million for Pacific, $45 million for Bottling Investments and $18 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, $1 million for Pacific and $5 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 $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $21 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. |
• | 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. |
• | 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 $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 $2 million for Eurasia and Africa, $3 million for Europe, $3 million for Latin America, $1 million for North America and $5 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) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended September 27, 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) | $ | 12,030 | $ | 4,793 | $ | 7,237 | 60.2 | % | $ | 4,424 | $ | 341 | $ | 2,472 | 20.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (235 | ) | 235 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (97 | ) | 97 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 78 | 18 | 60 | — | — | 60 | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 7 | 32 | (25 | ) | — | (11 | ) | (14 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,115 | $ | 4,843 | $ | 7,272 | 60.0 | % | $ | 4,424 | $ | — | $ | 2,848 | 23.5 | % | ||||||||||||||||
Three Months Ended September 28, 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) | $ | 12,340 | $ | 4,853 | $ | 7,487 | 60.7 | % | $ | 4,630 | $ | 64 | $ | 2,793 | 22.6 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (14 | ) | 14 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (59 | ) | 59 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 6 | (6 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 5 | (5 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 4 | 52 | (48 | ) | 19 | (2 | ) | (65 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,344 | $ | 4,905 | $ | 7,439 | 60.3 | % | $ | 4,649 | $ | — | $ | 2,790 | 22.6 | % | ||||||||||||||||
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) | (1) | (3) | (4) | 429 | (12) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (1) | (2) | (1) | N/A | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | (1) | — | (1) | (3) | N/A | (7) | ||||||||||||||||||||||||||
% Structural Impact | (4) | (6) | (3) | (3) | N/A | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 3 | 6 | 2 | — | N/A | (6) | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (1) | (2) | (5) | N/A | 2 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (1) | (2) | (1) | N/A | (5) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | — | — | — | (4) | N/A | 7 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (4) | (5) | (3) | (3) | N/A | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 4 | 6 | 3 | — | N/A | 8 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 27, 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) | $ | 90 | $ | 204 | $ | 658 | $ | 3,380 | $ | 925 | 27.4 | % | $ | 8 | $ | 2,447 | $ | 0.54 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 235 | — | — | 235 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 97 | 37 | — | 60 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | (8 | ) | — | (8 | ) | (8 | ) | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (645 | ) | (585 | ) | (255 | ) | — | (330 | ) | (0.07 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 20 | — | (20 | ) | — | ||||||||||||||||||||||||||||
Other Items | — | — | — | (14 | ) | (5 | ) | — | (9 | ) | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 90 | $ | 196 | $ | 13 | $ | 3,103 | $ | 713 | 23.0 | % | $ | 8 | $ | 2,382 | $ | 0.53 | |||||||||||||||||||
Three Months Ended September 28, 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) | $ | 102 | $ | 252 | $ | 23 | $ | 3,084 | $ | 755 | 24.5 | % | $ | 18 | $ | 2,311 | $ | 0.50 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 14 | — | — | 14 | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 59 | 21 | — | 38 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (6 | ) | (2 | ) | — | (4 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 10 | — | 10 | 1 | — | 9 | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | (5 | ) | (2 | ) | — | (3 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (7 | ) | — | 7 | — | ||||||||||||||||||||||||||||
Other Items | — | — | — | (65 | ) | (25 | ) | 1 | (41 | ) | (0.01 | ) | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 102 | $ | 262 | $ | 23 | $ | 3,091 | $ | 741 | 24.0 | % | $ | 19 | $ | 2,331 | $ | 0.51 | |||||||||||||||||||
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) | (11) | (19) | 2,906 | 10 | 23 | (61) | 6 | 8 | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (11) | (25) | (38) | — | (4) | (61) | 2 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,498 million average shares outstanding — diluted |
2 | 4,587 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 27, 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) | $ | 35,814 | $ | 14,106 | $ | 21,708 | 60.6 | % | $ | 12,991 | $ | 594 | $ | 8,123 | 22.7 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (276 | ) | 276 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (312 | ) | 312 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 78 | 18 | 60 | (5 | ) | (2 | ) | 67 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 10 | (81 | ) | 91 | (4 | ) | (8 | ) | 103 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 35,902 | $ | 14,043 | $ | 21,859 | 60.9 | % | $ | 12,982 | $ | — | $ | 8,877 | 24.7 | % | ||||||||||||||||
Nine Months Ended September 28, 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) | $ | 36,562 | $ | 14,425 | $ | 22,137 | 60.5 | % | $ | 13,308 | $ | 233 | $ | 8,596 | 23.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (44 | ) | 44 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (177 | ) | 177 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 9 | (9 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 5 | (5 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 5 | 50 | (45 | ) | 17 | (26 | ) | (36 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 36,567 | $ | 14,475 | $ | 22,092 | 60.4 | % | $ | 13,325 | $ | — | $ | 8,767 | 24.0 | % | ||||||||||||||||
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) | (2) | (2) | (2) | 155 | (6) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (1) | (2) | (1) | N/A | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | — | (1) | — | (1) | N/A | (2) | ||||||||||||||||||||||||||
% Structural Impact | (3) | (4) | (2) | (2) | N/A | (1) | ||||||||||||||||||||||||||
% Change - Currency Neutral Reported and Adjusted for Structural Items | 3 | 3 | 2 | 1 | N/A | (1) | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (3) | (1) | (3) | N/A | 1 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (1) | (2) | (1) | N/A | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | — | (2) | 1 | (1) | N/A | 5 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (2) | (4) | (2) | (2) | N/A | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 3 | 2 | 3 | 1 | N/A | 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) | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 27, 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) | $ | 314 | $ | 537 | $ | 522 | $ | 9,249 | $ | 2,331 | 25.2 | % | $ | 44 | $ | 6,874 | $ | 1.52 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 276 | — | — | 276 | 0.06 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 312 | 115 | — | 197 | 0.04 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 25 | — | 25 | (5 | ) | — | 30 | 0.01 | ||||||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (641 | ) | (574 | ) | (307 | ) | — | (267 | ) | (0.06 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 20 | — | (20 | ) | — | ||||||||||||||||||||||||||||
Other Items | (23 | ) | 9 | 140 | 275 | 46 | — | 229 | 0.05 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 291 | $ | 571 | $ | 21 | $ | 9,559 | $ | 2,198 | 23.0 | % | $ | 44 | $ | 7,317 | $ | 1.62 | |||||||||||||||||||
Nine Months Ended September 28, 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) | $ | 302 | $ | 637 | $ | 156 | $ | 9,432 | $ | 2,236 | 23.7 | % | $ | 43 | $ | 7,153 | $ | 1.56 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 44 | — | — | 44 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 177 | 65 | — | 112 | 0.02 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (9 | ) | (3 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | (33 | ) | — | (33 | ) | (2 | ) | — | (31 | ) | (0.01 | ) | ||||||||||||||||||||||||
CCE Transaction | — | — | — | (5 | ) | (2 | ) | — | (3 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (92 | ) | (92 | ) | (33 | ) | — | (59 | ) | (0.01 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 26 | — | (26 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Other Items | — | 14 | — | (22 | ) | (9 | ) | 1 | (14 | ) | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 302 | $ | 618 | $ | 64 | $ | 9,492 | $ | 2,278 | 24.0 | % | $ | 44 | $ | 7,170 | $ | 1.56 | |||||||||||||||||||
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) | 4 | (16) | 236 | (2) | 4 | — | (4) | (2) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (3) | (8) | (66) | 1 | (3) | (1) | 2 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,518 million average shares outstanding — diluted |
2 | 4,593 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 September 27, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 231 | $ | 742 | $ | 720 | $ | 803 | $ | 575 | $ | 22 | $ | (621 | ) | $ | 2,472 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 45 | 190 | 235 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 1 | — | 53 | 2 | — | 41 | 97 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 55 | — | — | 60 | |||||||||||||||||||||||||
Other Items | — | — | — | (24 | ) | 11 | (8 | ) | 7 | (14 | ) | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 231 | $ | 743 | $ | 725 | $ | 830 | $ | 643 | $ | 59 | $ | (383 | ) | $ | 2,848 | ||||||||||||||||
Three Months Ended September 28, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 244 | $ | 698 | $ | 734 | $ | 832 | $ | 613 | $ | 44 | $ | (372 | ) | $ | 2,793 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 14 | — | 14 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 48 | 1 | — | 10 | 59 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (5 | ) | (6 | ) | ||||||||||||||||||||||
CCE Transaction | — | — | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (71 | ) | — | 3 | 3 | (65 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 244 | $ | 698 | $ | 734 | $ | 804 | $ | 613 | $ | 61 | $ | (364 | ) | $ | 2,790 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (6) | 6 | (2) | (3) | (6) | (48) | (67) | (12) | |||||||||||||||||||||||||
% Currency Impact | (11) | 1 | (12) | — | (1) | 8 | (1) | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 5 | 6 | 10 | (3) | (5) | (56) | (66) | (7) | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (6) | 6 | (1) | 3 | 5 | (1) | (5) | 2 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (11) | 1 | (12) | — | (4) | 10 | — | (5) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 5 | 6 | 11 | 3 | 8 | (11) | (6) | 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: | |||||||||||||||||||||||||||||||||
Nine Months Ended September 27, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 845 | $ | 2,261 | $ | 2,209 | $ | 1,875 | $ | 2,024 | $ | 186 | $ | (1,277 | ) | $ | 8,123 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 86 | 190 | 276 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | 7 | — | 190 | 16 | — | 97 | 312 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 55 | — | 7 | 67 | |||||||||||||||||||||||||
Other Items | — | — | — | 85 | 11 | (1 | ) | 8 | 103 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 847 | $ | 2,268 | $ | 2,214 | $ | 2,148 | $ | 2,105 | $ | 271 | $ | (976 | ) | $ | 8,877 | ||||||||||||||||
Nine Months Ended September 28, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 806 | $ | 2,290 | $ | 2,164 | $ | 2,039 | $ | 2,089 | $ | 169 | $ | (961 | ) | $ | 8,596 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 45 | — | 44 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | — | 157 | 1 | — | 18 | 177 | |||||||||||||||||||||||||
Productivity Initiatives | — | (3 | ) | — | — | (1 | ) | — | (5 | ) | (9 | ) | |||||||||||||||||||||
CCE Transaction | — | — | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (48 | ) | — | 6 | 6 | (36 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 806 | $ | 2,287 | $ | 2,164 | $ | 2,143 | $ | 2,089 | $ | 220 | $ | (942 | ) | $ | 8,767 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 5 | (1) | 2 | (8) | (3) | 10 | (33) | (6) | |||||||||||||||||||||||||
% Currency Impact | (8) | (1) | (9) | — | (2) | (4) | 1 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 13 | — | 11 | (8) | (1) | 14 | (34) | (2) | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 5 | (1) | 2 | — | 1 | 23 | (4) | 1 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (8) | (1) | (9) | — | (3) | (2) | 1 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 13 | — | 11 | — | 3 | 25 | (5) | 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) | |||||||||
Operating Expense Leverage: | |||||||||
Three Months Ended September 27, 2013 | |||||||||
Operating income | Gross profit | Operating expense leverage1 | |||||||
% Change — Reported (GAAP) | (12) | (3) | (8) | ||||||
% Change — Currency Neutral Reported | (7) | (1) | (6) | ||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | (6) | 2 | (7) | ||||||
% Change — After Considering Items (Non-GAAP) | 2 | (2) | 4 | ||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | — | 7 | ||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 8 | 3 | 5 | ||||||
Nine Months Ended September 27, 2013 | |||||||||
Operating income | Gross profit | Operating expense leverage1 | |||||||
% Change — Reported (GAAP) | (6) | (2) | (4) | ||||||
% Change — Currency Neutral Reported | (2) | — | (2) | ||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | (1) | 2 | (3) | ||||||
% Change — After Considering Items (Non-GAAP) | 1 | (1) | 2 | ||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 5 | 1 | 4 | ||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 6 | 3 | 3 |
1 | Operating expense leverage is calculated by subtracting gross profit growth from operating income growth. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Nine Months Ended September 27, 2013 | Nine Months Ended September 28, 2012 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,079 | $ | 1,319 | ||||||
Purchases of Stock for Treasury | (3,892 | ) | (3,619 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (17 | ) | (5 | ) | ||||||
Net Change in Treasury Stock Payables2 | 62 | (32 | ) | |||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (2,768 | ) | $ | (2,337 | ) |
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. |