Contacts: Investors and Analysts: Jackson Kelly T +01 404.676.7563 Media: Petro Kacur T +01 404.676.2683 | The Coca-Cola Company Global Public Affairs & Communications Department P.O. Box 1734 Atlanta, GA 30301 |
• | Global volume grew 2% for the full year and 1% for the fourth quarter. |
• | Reported net revenues declined 2% for the full year and 4% for the fourth quarter. Excluding the impact of structural changes, comparable currency neutral net revenues grew 3% for the full year and 4% for the fourth quarter. |
• | Reported operating income declined 5% for the full year and 4% for the fourth quarter. Excluding the impact of structural changes, comparable currency neutral operating income grew 6% for the full year, in line with our long-term growth target, and 6% for the fourth quarter. |
• | Currency was a 2% headwind on comparable net revenues and a 4% headwind on comparable operating income for the full year. |
• | Full-year reported EPS was $1.90, down 3%, and comparable EPS was $2.08, up 3%. Comparable currency neutral EPS was up 8% for the full year. Fourth quarter reported EPS was $0.38, down 7%, and comparable EPS was $0.46, up 2%. Comparable currency neutral EPS was up 7% for the fourth quarter. |
• | We are expanding our previously announced productivity and reinvestment program to generate an incremental $1 billion in productivity by 2016 to drive increased media investments in our brands. |
• | As announced on Feb. 5, 2014, we signed an agreement together with Green Mountain Coffee Roasters to collaborate on the development and introduction of our global brand portfolio for use in the forthcoming Keurig Cold™ at-home beverage system. |
Three Months Ended December 31, 2013 | ||||||
% Favorable / (Unfavorable) | ||||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | Comparable Currency Neutral Operating Income Excluding Structural | ||
Total Company | 1 | (4) | (4) | 1 | 6 | |
Eurasia & Africa | 6 | 1 | (11) | (2) | ||
Europe | 1 | 11 | (11) | (6) | ||
Latin America | — | (1) | (2) | 13 | ||
North America | (1) | — | — | (12) | ||
Pacific | 4 | (10) | 7 | 16 | ||
Bottling Investments | (29) | (25) | (153) | (60) |
Three Months Ended December 31, 2013 | ||||||||
% Favorable / (Unfavorable) | ||||||||
Concentrate Sales/ Reported Volume * | Price/Mix | Currency | Structural Changes | Net Revenues | Comparable Currency Neutral Net Revenues | Comparable Currency Neutral Net Revenues Excluding Structural | ||
Total Company | 2 | 1 | (2) | (5) | (4) | (1) | 4 | |
Eurasia & Africa | 6 | 2 | (7) | — | 1 | 9 | ||
Europe | 1 | 7 | 3 | — | 11 | 8 | ||
Latin America | 2 | 10 | (11) | (2) | (1) | 11 | ||
North America | — | 1 | (1) | — | — | — | ||
Pacific | 3 | (5) | (9) | 1 | (10) | (1) | ||
Bottling Investments | 8 | 1 | — | (34) | (25) | (25) |
Year Ended December 31, 2013 | ||||||
% Favorable / (Unfavorable) | ||||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | Comparable Currency Neutral Operating Income Excluding Structural | ||
Total Company | 2 | (2) | (5) | 4 | 6 | |
Eurasia & Africa | 7 | 2 | 1 | 9 | ||
Europe | (1) | 4 | (3) | (1) | ||
Latin America | 1 | 2 | 1 | 12 | ||
North America | — | — | (6) | (3) | ||
Pacific | 3 | (7) | (2) | 6 | ||
Bottling Investments | (17) | (14) | (18) | — |
Year Ended December 31, 2013 | ||||||||
% Favorable / (Unfavorable) | ||||||||
Concentrate Sales/ Reported Volume * | Price/Mix | Currency | Structural Changes | Net Revenues | Comparable Currency Neutral Net Revenues | Comparable Currency Neutral Net Revenues Excluding Structural | ||
Total Company | 2 | 1 | (2) | (3) | (2) | — | 3 | |
Eurasia & Africa | 7 | 2 | (7) | — | 2 | 9 | ||
Europe | (1) | 5 | — | — | 4 | 4 | ||
Latin America | 1 | 10 | (8) | (1) | 2 | 10 | ||
North America | — | 1 | — | (1) | — | — | ||
Pacific | 5 | (4) | (6) | (2) | (7) | — | ||
Bottling Investments | 4 | 1 | (1) | (18) | (14) | (13) |
• | Our Eurasia and Africa Group grew volume 6% in the quarter. All five of the group’s business units delivered volume growth for the quarter and full year, even with social unrest and challenging macroeconomic environments in certain markets. During the quarter, we gained volume share in NARTD beverages, with share gains in sparkling beverages, juices and juice drinks and sports drinks. Sparkling beverage volume grew mid single digits in the quarter, led by brand Coca-Cola, as we focused on driving executional capabilities in the marketplace and leveraging our marketing platforms including the Sochi Olympics and “Share a Coke”. |
• | Reported operating income declined 11% in the quarter with comparable currency neutral operating income down 2% in the quarter, reflecting volume growth and positive price/mix offset by the timing of certain operating expenses. Reported operating income increased 1% for the full year. Comparable currency neutral operating income increased 9% for the full year, driven by revenue growth across most business units, partially offset by investments in our brands. |
• | For the quarter, our Europe Group's volume grew 1% representing a sequential improvement versus the third quarter year-to-date results, with our sparkling beverage volume also growing 1% in the quarter. While there has been some improvement in our performance, we are still seeing ongoing macroeconomic uncertainty and weak consumer confidence impacting consumer spending, particularly in the southern region of Europe. We continue to focus on our share positions with the Europe Group maintaining volume share in NARTD beverages and gaining volume and value share in core sparkling beverages and sports drinks. |
• | The consolidation of the innocent branded juice and smoothie business contributed significantly to the group’s price/mix and thus net revenues in both the quarter and the year. However, it contributed less meaningfully to the group’s operating income due to the higher cost of goods sold associated with a finished goods business and our level of investment as we continue to build and expand the business. |
• | Reported operating income declined 11% in the quarter, with comparable currency neutral operating income down 6% in the quarter. The decline in comparable currency neutral operating income in the quarter was primarily due to cycling the impact of the timing of |
• | Our Latin America Group's volume was even in the quarter with the group gaining volume share in NARTD beverages, resulting in the ninth consecutive year of share gains. However, sparkling beverage volume was down 3% as the category’s performance moderated primarily due to ongoing economic challenges, particularly in Mexico and Brazil, while we maintained volume share in sparkling beverages. |
• | Reported operating income decreased 2% in the quarter, with comparable currency neutral operating income up 13%, reflecting favorable pricing across all business units in the group coupled with volume growth in the Latin Center and South Latin business units, partially offset by investments in our brands. Comparable currency neutral operating income increased 12% for the full year, reflecting volume growth and strong pricing for the group, partially offset by continued investments in the business, including investments related to the 2014 FIFA World CupTM. |
• | We gained volume and value share in NARTD beverages in the fourth quarter, while our volume was down 1%. The overall NARTD industry in North America continued to be impacted by a challenging external environment. While our sparkling beverage volume declined 3% in the quarter, we outperformed the rest of the industry in both volume and value share, as we leveraged our occasion-brand-price-package-channel (OBPPC) strategy to provide increased consumer choice along with preferred price points. Still beverage volume grew 4% in the quarter, with balanced growth and volume and value share gains across every still beverage category, making this the 15th consecutive quarter that our still beverage portfolio has either maintained or gained both volume and value share. Powerade delivered high single-digit growth in the quarter, gaining both volume and value share, with growth coming from both the base business and new Powerade Zero Drops. |
• | Fourth quarter reported operating income was even. Comparable currency neutral operating income declined 12% in the quarter, reflecting softer volume trends, especially in sparkling beverages, and the timing of certain operating expenses. Full-year reported operating |
• | Our Pacific Group's volume grew 4% in the quarter, representing a sequential improvement versus the third quarter year-to-date results. Growth was broad based with 8% growth in India, 5% growth in China and 3% growth in Japan. Sparkling beverage volume growth was up low single digits in the quarter, led by brand Coca-Cola and Sprite, both up 2%. Still beverage volume grew high single digits in the quarter, with double-digit growth in packaged water and mid single-digit growth in teas and juices and juice drinks. |
• | Reported operating income increased 7% in the quarter and comparable currency neutral operating income increased 16% in the quarter, reflecting volume growth, a shift in product and channel mix within certain markets, productivity initiatives and the tight control and timing of expenses. Reported operating income decreased 2% for the full year while comparable currency neutral operating income increased 6% for the full year, reflecting volume growth and the tight control of expenses. |
• | Our Bottling Investments Group's (BIG) volume grew 7% in the quarter on a comparable basis, led by Germany, China and India, 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 29% in the quarter and down 17% for the full year. |
• | Reported operating loss in the quarter increased $43 million, primarily reflecting the deconsolidation of Company-owned bottling operations. Comparable currency neutral operating income decreased 60% in the quarter due to the structural changes referenced above, but was partially offset by improved performance in a number of our markets and the benefit of an additional selling day in the quarter. Reported operating income for the full year declined 18%, and comparable currency neutral operating income was even for the full year, reflecting an increase in revenues resulting from volume growth and positive pricing in the majority of our markets, offset by the deconsolidation of Company-owned bottling operations in 2013. |
• | All references to growth rate percentages and share 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, unless otherwise noted. All volume percentage changes are computed based on average daily sales for the fourth quarter, unless otherwise noted, and are computed on a reported basis for the full year. “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. |
• | Fourth quarter 2013 financial results were impacted by one additional selling day, which partially offset the impact of two fewer selling days in first quarter 2013 results. 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 | |||||||||
December 31, 2013 | December 31, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 11,040 | $ | 11,455 | (4) | ||||
Cost of goods sold | 4,315 | 4,628 | (7) | ||||||
Gross Profit | 6,725 | 6,827 | (2) | ||||||
Selling, general and administrative expenses | 4,319 | 4,430 | (3) | ||||||
Other operating charges | 301 | 214 | 40 | ||||||
Operating Income | 2,105 | 2,183 | (4) | ||||||
Interest income | 153 | 126 | 22 | ||||||
Interest expense | 149 | 95 | 56 | ||||||
Equity income (loss) — net | 65 | 182 | (64) | ||||||
Other income (loss) — net | 54 | (19 | ) | — | |||||
Income Before Income Taxes | 2,228 | 2,377 | (6) | ||||||
Income taxes | 520 | 487 | 7 | ||||||
Consolidated Net Income | 1,708 | 1,890 | (10) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | (2 | ) | 24 | — | |||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,710 | $ | 1,866 | (8) | ||||
Diluted Net Income Per Share2 | $ | 0.38 | $ | 0.41 | (7) | ||||
Average Shares Outstanding — Diluted2 | 4,482 | 4,557 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended December 31, 2013 and 2012, basic net income per share was $0.39 for 2013 and $0.42 for 2012 based on average shares outstanding — basic of 4,410 for 2013 and 4,479 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) | |||||||||
Year Ended | |||||||||
December 31, 2013 | December 31, 2012 | % Change1 | |||||||
Net Operating Revenues | $ | 46,854 | $ | 48,017 | (2) | ||||
Cost of goods sold | 18,421 | 19,053 | (3) | ||||||
Gross Profit | 28,433 | 28,964 | (2) | ||||||
Selling, general and administrative expenses | 17,310 | 17,738 | (2) | ||||||
Other operating charges | 895 | 447 | 100 | ||||||
Operating Income | 10,228 | 10,779 | (5) | ||||||
Interest income | 534 | 471 | 13 | ||||||
Interest expense | 463 | 397 | 17 | ||||||
Equity income (loss) — net | 602 | 819 | (27) | ||||||
Other income (loss) — net | 576 | 137 | 321 | ||||||
Income Before Income Taxes | 11,477 | 11,809 | (3) | ||||||
Income taxes | 2,851 | 2,723 | 5 | ||||||
Consolidated Net Income | 8,626 | 9,086 | (5) | ||||||
Less: Net income attributable to noncontrolling interests | 42 | 67 | (38) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 8,584 | $ | 9,019 | (5) | ||||
Diluted Net Income Per Share2 | $ | 1.90 | $ | 1.97 | (3) | ||||
Average Shares Outstanding — Diluted2 | 4,509 | 4,584 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the years ended December 31, 2013 and 2012, basic net income per share was $1.94 for 2013 and $2.00 for 2012 based on average shares outstanding — basic of 4,434 for 2013 and 4,504 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) | |||||||
December 31, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 10,414 | $ | 8,442 | |||
Short-term investments | 6,707 | 5,017 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 17,121 | 13,459 | |||||
Marketable securities | 3,147 | 3,092 | |||||
Trade accounts receivable, less allowances of $61 and $53, respectively | 4,873 | 4,759 | |||||
Inventories | 3,277 | 3,264 | |||||
Prepaid expenses and other assets | 2,886 | 2,781 | |||||
Assets held for sale | — | 2,973 | |||||
Total Current Assets | 31,304 | 30,328 | |||||
Equity Method Investments | 10,393 | 9,216 | |||||
Other Investments, Principally Bottling Companies | 1,119 | 1,232 | |||||
Other Assets | 4,661 | 3,585 | |||||
Property, Plant and Equipment — net | 14,967 | 14,476 | |||||
Trademarks With Indefinite Lives | 6,744 | 6,527 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,415 | 7,405 | |||||
Goodwill | 12,312 | 12,255 | |||||
Other Intangible Assets | 1,140 | 1,150 | |||||
Total Assets | $ | 90,055 | $ | 86,174 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,577 | $ | 8,680 | |||
Loans and notes payable | 16,901 | 16,297 | |||||
Current maturities of long-term debt | 1,024 | 1,577 | |||||
Accrued income taxes | 309 | 471 | |||||
Liabilities held for sale | — | 796 | |||||
Total Current Liabilities | 27,811 | 27,821 | |||||
Long-Term Debt | 19,154 | 14,736 | |||||
Other Liabilities | 3,498 | 5,468 | |||||
Deferred Income Taxes | 6,152 | 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 | 12,276 | 11,379 | |||||
Reinvested earnings | 61,660 | 58,045 | |||||
Accumulated other comprehensive income (loss) | (3,432 | ) | (3,385 | ) | |||
Treasury stock, at cost — 2,638 and 2,571 shares, respectively | (39,091 | ) | (35,009 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 33,173 | 32,790 | |||||
Equity Attributable to Noncontrolling Interests | 267 | 378 | |||||
Total Equity | 33,440 | 33,168 | |||||
Total Liabilities and Equity | $ | 90,055 | $ | 86,174 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Year Ended | |||||||
December 31, 2013 | December 31, 2012 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 8,626 | $ | 9,086 | |||
Depreciation and amortization | 1,977 | 1,982 | |||||
Stock-based compensation expense | 227 | 259 | |||||
Deferred income taxes | 648 | 632 | |||||
Equity (income) loss — net of dividends | (201 | ) | (426 | ) | |||
Foreign currency adjustments | 168 | (130 | ) | ||||
Significant (gains) losses on sales of assets — net | (670 | ) | (98 | ) | |||
Other operating charges | 465 | 166 | |||||
Other items | 234 | 254 | |||||
Net change in operating assets and liabilities | (932 | ) | (1,080 | ) | |||
Net cash provided by operating activities | 10,542 | 10,645 | |||||
Investing Activities | |||||||
Purchases of investments | (14,782 | ) | (14,824 | ) | |||
Proceeds from disposals of investments | 12,791 | 7,791 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (353 | ) | (1,486 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 872 | 20 | |||||
Purchases of property, plant and equipment | (2,550 | ) | (2,780 | ) | |||
Proceeds from disposals of property, plant and equipment | 111 | 143 | |||||
Other investing activities | (303 | ) | (268 | ) | |||
Net cash provided by (used in) investing activities | (4,214 | ) | (11,404 | ) | |||
Financing Activities | |||||||
Issuances of debt | 43,425 | 42,791 | |||||
Payments of debt | (38,714 | ) | (38,573 | ) | |||
Issuances of stock | 1,328 | 1,489 | |||||
Purchases of stock for treasury | (4,832 | ) | (4,559 | ) | |||
Dividends | (4,969 | ) | (4,595 | ) | |||
Other financing activities | 17 | 100 | |||||
Net cash provided by (used in) financing activities | (3,745 | ) | (3,347 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (611 | ) | (255 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the year | 1,972 | (4,361 | ) | ||||
Balance at beginning of year | 8,442 | 12,803 | |||||
Balance at end of year | $ | 10,414 | $ | 8,442 |
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 | |||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 660 | $ | 656 | 1 | $ | 242 | $ | 272 | (11 | ) | $ | 241 | $ | 280 | (14 | ) | ||||||||||||||||
Europe | 1,269 | 1,143 | 11 | 598 | 670 | (11 | ) | 605 | 675 | (10 | ) | ||||||||||||||||||||||
Latin America | 1,266 | 1,274 | (1 | ) | 699 | 715 | (2 | ) | 707 | 718 | (2 | ) | |||||||||||||||||||||
North America | 5,271 | 5,292 | — | 557 | 558 | — | 555 | 558 | — | ||||||||||||||||||||||||
Pacific | 1,253 | 1,387 | (10 | ) | 454 | 427 | 7 | 452 | 435 | 4 | |||||||||||||||||||||||
Bottling Investments | 1,568 | 2,087 | (25 | ) | (71 | ) | (29 | ) | (153 | ) | 2 | 154 | (98 | ) | |||||||||||||||||||
Corporate | 30 | 19 | 64 | (374 | ) | (430 | ) | 13 | (334 | ) | (443 | ) | 25 | ||||||||||||||||||||
Eliminations | (277 | ) | (403 | ) | 31 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 11,040 | $ | 11,455 | (4 | ) | $ | 2,105 | $ | 2,183 | (4 | ) | $ | 2,228 | $ | 2,377 | (6 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $169 million for Europe, $22 million for Latin America, $3 million for North America, $66 million for Pacific and $17 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before taxes were reduced by $50 million for Europe, $92 million for North America, $10 million for Pacific, $108 million for Bottling Investments and $24 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 reduced by $5 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 $1 million for Corporate due to transaction costs associated with certain of the Company's bottling partners. |
• | Income (loss) before income taxes was reduced by a net $134 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 $30 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended (continued) |
• | Intersegment revenues were $154 million for Europe, $95 million for Latin America, $2 million for North America, $130 million for Pacific and $22 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $70 million for North America, $2 million for Pacific, $119 million for Bottling Investments and $20 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 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 increased by $1 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 $6 million for North America due 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 $6 million for Corporate due to the elimination of the Company's proportionate share of gross profit in inventory on sales to Embotelladora Andina S.A. ("Andina") following its merger with Embotelladoras Coca-Cola Polar S.A. ("Polar"). Subsequent to this transaction, the Company has an ownership interest in Andina that we account for under the equity method of accounting. |
• | Operating income (loss) and income (loss) before income taxes were increased by $3 million for Corporate due to a net gain on the sale of land held by one of the Company's consolidated bottling operations, partially offset by transaction costs associated with the Company's acquisition of an equity ownership interest in Mikuni Coca-Cola Bottling Co., Ltd. ("Mikuni"), a bottling partner with operations in Japan. |
• | Income (loss) before income taxes was increased by $185 million for Corporate due to the gain the Company recognized as a result of the merger of Andina and Polar. |
• | Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on the sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA S.A.B. de C.V. ("Coca-Cola FEMSA"), which was completed in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling operations were classified as held for sale in our consolidated balance sheets. |
• | Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. |
• | Income (loss) before income taxes was reduced by $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 $16 million for Corporate due to other-than-temporary declines in the fair values of certain cost method investments. |
• | Income (loss) before income taxes was reduced by $1 million for Europe and was increased by $1 million for Eurasia and Africa, $1 million for Latin America, $1 million for North America and $1 million for Pacific 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 $5 million for Corporate due to charges associated with the Company's indemnification of a previously consolidated entity. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | December 31, 2013 | December 31, 2012 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 2,763 | $ | 2,697 | 2 | $ | 1,087 | $ | 1,078 | 1 | $ | 1,109 | $ | 1,101 | 1 | ||||||||||||||||||
Europe | 5,334 | 5,123 | 4 | 2,859 | 2,960 | (3 | ) | 2,923 | 3,015 | (3 | ) | ||||||||||||||||||||||
Latin America | 4,939 | 4,831 | 2 | 2,908 | 2,879 | 1 | 2,920 | 2,882 | 1 | ||||||||||||||||||||||||
North America | 21,590 | 21,680 | — | 2,432 | 2,597 | (6 | ) | 2,434 | 2,624 | (7 | ) | ||||||||||||||||||||||
Pacific | 5,869 | 6,308 | (7 | ) | 2,478 | 2,516 | (2 | ) | 2,494 | 2,523 | (1 | ) | |||||||||||||||||||||
Bottling Investments | 7,676 | 8,895 | (14 | ) | 115 | 140 | (18 | ) | 679 | 904 | (25 | ) | |||||||||||||||||||||
Corporate | 154 | 127 | 22 | (1,651 | ) | (1,391 | ) | (19 | ) | (1,082 | ) | (1,240 | ) | 13 | |||||||||||||||||||
Eliminations | (1,471 | ) | (1,644 | ) | 10 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 46,854 | $ | 48,017 | (2 | ) | $ | 10,228 | $ | 10,779 | (5 | ) | $ | 11,477 | $ | 11,809 | (3 | ) |
• | Intersegment revenues were $689 million for Europe, $191 million for Latin America, $16 million for North America, $497 million for Pacific and $78 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $57 million for Europe, $282 million for North America, $26 million for Pacific, $194 million for Bottling Investments and $121 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 $195 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 $22 million for Pacific due to charges associated with certain of the Company's fixed assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $8 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 $159 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) | ||||||||||||||||||
Year Ended (continued) |
• | Income (loss) before income taxes was reduced by $53 million for Corporate due to charges the Company recognized on the early extinguishment of certain long-term debt. These charges include both the difference between the reacquisition price and the net carrying amount of the debt extinguished as well as hedge accounting adjustments reclassified from accumulated comprehensive income to earnings. |
• | 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. |
• | Intersegment revenues were $642 million for Europe, $271 million for Latin America, $15 million for North America, $628 million for Pacific and $88 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $227 million for North America, $3 million for Pacific, $164 million for Bottling Investments and $38 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 $4 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 $6 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. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to changes in the Company's ready-to-drink tea strategy as a result of our current U.S. license agreement with Nestlé terminating at the end of 2012. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $6 million for North America due 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 $6 million for Corporate due to the elimination of the Company's proportionate share of gross profit in inventory on sales to Andina following its merger with Polar. Subsequent to this transaction, the Company has an ownership interest in Andina that we account for under the equity method of accounting. |
• | Operating income (loss) and income (loss) before income taxes were increased by $3 million for Corporate due to a gain on the sale of land held by one of the Company's consolidated bottling operations, partially offset by transaction costs associated with the Company's acquisition of an equity ownership interest in Mikuni, a bottling partner with operations in Japan. |
• | Income (loss) before income taxes was increased by $185 million for Corporate due to the gain the Company recognized as a result of the merger of Andina and Polar. |
• | 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 amount of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on the pending sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA, which was completed in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling operations were classified as held for sale in our consolidated balance sheets. |
• | Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. |
• | Income (loss) before income taxes was increased by $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. |
• | Income (loss) before income taxes was reduced by $16 million for Corporate due to other-than-temporary declines in the fair values of certain cost method investments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Year Ended (continued) |
• | Income (loss) before income taxes was reduced by $1 million for Eurasia and Africa, $4 million for Europe, $2 million for Latin America and $4 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. |
• | Income (loss) before income taxes was reduced by $5 million for Corporate due to charges associated with the Company's indemnification of a previously consolidated entity. |
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) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended December 31, 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) | $ | 11,040 | $ | 4,315 | $ | 6,725 | 60.9 | % | $ | 4,319 | $ | 301 | $ | 2,105 | 19.1 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (107 | ) | 107 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (182 | ) | 182 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (1 | ) | 1 | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (7 | ) | 13 | (20 | ) | 3 | (11 | ) | (12 | ) | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 11,033 | $ | 4,328 | $ | 6,705 | 60.8 | % | $ | 4,322 | $ | — | $ | 2,383 | 21.6 | % | ||||||||||||||||
Three Months Ended December 31, 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) | $ | 11,455 | $ | 4,628 | $ | 6,827 | 59.6 | % | $ | 4,430 | $ | 214 | $ | 2,183 | 19.1 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (119 | ) | 119 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (93 | ) | 93 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 1 | (1 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 1 | (1 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 6 | — | 6 | — | 3 | 3 | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 4 | (70 | ) | 74 | (6 | ) | (7 | ) | 87 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 11,465 | $ | 4,558 | $ | 6,907 | 60.2 | % | $ | 4,424 | $ | — | $ | 2,483 | 21.7 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (4) | (7) | (2) | (3) | 40 | (4) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (2) | (3) | (2) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | (1) | (5) | 2 | (1) | — | 2 | ||||||||||||||||||||||||||
% Structural Impact | (5) | (6) | (4) | (4) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 4 | 1 | 6 | 3 | — | 7 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (4) | (5) | (3) | (2) | — | (4) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (2) | (3) | (2) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (3) | — | — | — | 1 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (5) | (6) | (4) | (4) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 4 | 3 | 4 | 3 | — | 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) | |||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share1 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 149 | $ | 65 | $ | 54 | $ | 2,228 | $ | 520 | 23.3 | % | $ | (2 | ) | $ | 1,710 | $ | 0.38 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 107 | — | — | 107 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 182 | 60 | — | 122 | 0.03 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||||||||
Equity Investees | — | 134 | — | 134 | 12 | — | 122 | 0.03 | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | 1 | — | — | 1 | — | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 15 | — | (15 | ) | — | ||||||||||||||||||||||||||||
Other Items | (30 | ) | — | — | 18 | 7 | — | 11 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 119 | $ | 199 | $ | 54 | $ | 2,670 | $ | 615 | 23.0 | % | $ | (2 | ) | $ | 2,057 | $ | 0.46 | ||||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 95 | $ | 182 | $ | (19 | ) | $ | 2,377 | $ | 487 | 20.4 | % | $ | 24 | $ | 1,866 | $ | 0.41 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 16 | 135 | — | — | 135 | 0.03 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 93 | 35 | — | 58 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (1 | ) | — | — | (1 | ) | — | |||||||||||||||||||||||||||
Equity Investees | — | 25 | — | 25 | 4 | — | 21 | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | (1 | ) | — | — | (1 | ) | — | |||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 10 | 13 | (28 | ) | — | 41 | 0.01 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 124 | — | (124 | ) | (0.03 | ) | |||||||||||||||||||||||||||
Other Items | — | (3 | ) | — | 84 | 32 | — | 52 | 0.01 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 95 | $ | 204 | $ | 7 | $ | 2,725 | $ | 654 | 24.0 | % | $ | 24 | $ | 2,047 | $ | 0.45 | |||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share | ||||||||||||||||||||||||||||||
% Change — Reported (GAAP) | 56 | (64) | — | (6) | 7 | — | (8) | (7) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 24 | (2) | 612 | (2) | (6) | — | — | 2 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,482 million average shares outstanding — diluted |
2 | 4,557 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) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 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) | $ | 46,854 | $ | 18,421 | $ | 28,433 | 60.7 | % | $ | 17,310 | $ | 895 | $ | 10,228 | 21.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (383 | ) | 383 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (494 | ) | 494 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 78 | 18 | 60 | (5 | ) | (3 | ) | 68 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 3 | (68 | ) | 71 | (1 | ) | (19 | ) | 91 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 46,935 | $ | 18,371 | $ | 28,564 | 60.9 | % | $ | 17,304 | $ | — | $ | 11,260 | 24.0 | % | ||||||||||||||||
Year Ended December 31, 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) | $ | 48,017 | $ | 19,053 | $ | 28,964 | 60.3 | % | $ | 17,738 | $ | 447 | $ | 10,779 | 22.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (163 | ) | 163 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (270 | ) | 270 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 10 | (10 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 6 | (6 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 6 | — | 6 | — | 3 | 3 | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 9 | (20 | ) | 29 | 11 | (33 | ) | 51 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 48,032 | $ | 19,033 | $ | 28,999 | 60.4 | % | $ | 17,749 | $ | — | $ | 11,250 | 23.4 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (2) | (3) | (2) | (2) | 100 | (5) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (2) | (2) | (1) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | — | (2) | — | (1) | — | (1) | ||||||||||||||||||||||||||
% Structural Impact | (3) | (4) | (2) | (2) | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 3 | 3 | 3 | 1 | — | 1 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (3) | (2) | (3) | — | — | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (2) | (2) | (1) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | — | (2) | 1 | (1) | — | 4 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (3) | (4) | (2) | (2) | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 3 | 2 | 3 | 1 | — | 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) | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 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) | $ | 463 | $ | 602 | $ | 576 | $ | 11,477 | $ | 2,851 | 24.8 | % | $ | 42 | $ | 8,584 | $ | 1.90 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 383 | — | — | 383 | 0.08 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 494 | 175 | — | 319 | 0.07 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | — | — | (2 | ) | — | |||||||||||||||||||||||||||
Equity Investees | — | 159 | — | 159 | 7 | — | 152 | 0.03 | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (641 | ) | (573 | ) | (307 | ) | — | (266 | ) | (0.06 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 35 | — | (35 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Other Items | (53 | ) | 9 | 140 | 293 | 53 | — | 240 | 0.05 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 410 | $ | 770 | $ | 75 | $ | 12,229 | $ | 2,813 | 23.0 | % | $ | 42 | $ | 9,374 | $ | 2.08 | |||||||||||||||||||
Year Ended December 31, 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) | $ | 397 | $ | 819 | $ | 137 | $ | 11,809 | $ | 2,723 | 23.1 | % | $ | 67 | $ | 9,019 | $ | 1.97 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 16 | 179 | — | — | 179 | 0.04 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 270 | 100 | — | 170 | 0.04 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (10 | ) | (3 | ) | — | (7 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | (8 | ) | — | (8 | ) | 2 | — | (10 | ) | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | (6 | ) | (2 | ) | — | (4 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (82 | ) | (79 | ) | (61 | ) | — | (18 | ) | — | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 150 | — | (150 | ) | (0.03 | ) | |||||||||||||||||||||||||||
Other Items | — | 11 | — | 62 | 23 | 1 | 38 | 0.01 | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 397 | $ | 822 | $ | 71 | $ | 12,217 | $ | 2,932 | 24.0 | % | $ | 68 | $ | 9,217 | $ | 2.01 | |||||||||||||||||||
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) | 17 | (27) | 321 | (3) | 5 | (38) | (5) | (3) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 3 | (6) | 6 | — | (4) | (38) | 2 | 3 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,509 million average shares outstanding — diluted |
2 | 4,584 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 December 31, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 242 | $ | 598 | $ | 699 | $ | 557 | $ | 454 | $ | (71 | ) | $ | (374 | ) | $ | 2,105 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 102 | 5 | 107 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 50 | — | 92 | 10 | 6 | 24 | 182 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||
Other Items | — | — | — | (19 | ) | 11 | — | (4 | ) | (12 | ) | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 242 | $ | 648 | $ | 699 | $ | 630 | $ | 475 | $ | 37 | $ | (348 | ) | $ | 2,383 | ||||||||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 272 | $ | 670 | $ | 715 | $ | 558 | $ | 427 | $ | (29 | ) | $ | (430 | ) | $ | 2,183 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 119 | — | 119 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 1 | — | 70 | 2 | — | 20 | 93 | |||||||||||||||||||||||||
Productivity Initiatives | — | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||
CCE Transaction | — | — | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||
Other Items | — | — | — | 86 | (1 | ) | — | 2 | 87 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 272 | $ | 670 | $ | 715 | $ | 713 | $ | 428 | $ | 90 | $ | (405 | ) | $ | 2,483 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (11) | (11) | (2) | — | 7 | (153) | 13 | (4) | |||||||||||||||||||||||||
% Currency Impact | (8) | 2 | (16) | — | (4) | (16) | 2 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | (3) | (13) | 13 | — | 11 | (137) | 11 | 2 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (11) | (3) | (2) | (12) | 11 | (59) | 14 | (4) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (8) | 2 | (16) | — | (5) | 1 | 1 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (2) | (6) | 13 | (12) | 16 | (60) | 13 | 1 |
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: | |||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 1,087 | $ | 2,859 | $ | 2,908 | $ | 2,432 | $ | 2,478 | $ | 115 | $ | (1,651 | ) | $ | 10,228 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 188 | 195 | 383 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | 57 | — | 282 | 26 | 6 | 121 | 494 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 55 | — | 8 | 68 | |||||||||||||||||||||||||
Other Items | — | — | — | 66 | 22 | (1 | ) | 4 | 91 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 1,089 | $ | 2,916 | $ | 2,913 | $ | 2,778 | $ | 2,580 | $ | 308 | $ | (1,324 | ) | $ | 11,260 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 1,078 | $ | 2,960 | $ | 2,879 | $ | 2,597 | $ | 2,516 | $ | 140 | $ | (1,391 | ) | $ | 10,779 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | (1 | ) | — | — | — | — | 164 | — | 163 | ||||||||||||||||||||||||
Productivity & Reinvestment | 1 | 1 | — | 227 | 3 | — | 38 | 270 | |||||||||||||||||||||||||
Productivity Initiatives | — | (4 | ) | — | — | (1 | ) | — | (5 | ) | (10 | ) | |||||||||||||||||||||
CCE Transaction | — | — | — | (6 | ) | — | — | — | (6 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||
Other Items | — | — | — | 38 | (1 | ) | 6 | 8 | 51 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 1,078 | $ | 2,957 | $ | 2,879 | $ | 2,856 | $ | 2,517 | $ | 310 | $ | (1,347 | ) | $ | 11,250 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 1 | (3) | 1 | (6) | (2) | (18) | (19) | (5) | |||||||||||||||||||||||||
% Currency Impact | (8) | — | (10) | — | (2) | (8) | 2 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 9 | (3) | 11 | (6) | 1 | (11) | (20) | (1) | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 1 | (1) | 1 | (3) | 2 | (1) | 2 | — | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (8) | — | (10) | — | (3) | (1) | 1 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 9 | (1) | 12 | (3) | 6 | — | — | 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 December 31, 2013 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (4) | (2) | (2) | ||||
% Change — Currency Neutral Reported | 2 | 2 | 1 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 7 | 6 | 1 | ||||
% Change — After Considering Items (Non-GAAP) | (4) | (3) | (1) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 1 | — | 1 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 6 | 4 | 2 | ||||
Year Ended December 31, 2013 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (5) | (2) | (3) | ||||
% Change — Currency Neutral Reported | (1) | — | (1) | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 1 | 3 | (2) | ||||
% Change — After Considering Items (Non-GAAP) | — | (2) | 2 | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | 1 | 3 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 6 | 3 | 3 | ||||
Note: | Certain rows may not add due to rounding. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,328 | $ | 1,489 | ||||||
Purchases of Stock for Treasury | (4,832 | ) | (4,559 | ) | ||||||
Net Change in Stock Issuance Receivables1 | — | 8 | ||||||||
Net Change in Treasury Stock Payables2 | (5 | ) | (1 | ) | ||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (3,509 | ) | $ | (3,063 | ) |
1 | Represents the net change in receivables related to employee stock options exercised but not settled prior to the end of the year. |
2 | Represents the net change in payables for treasury shares repurchased but not settled prior to the end of the year. |