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 unit case volume grew 2%. Coca-Cola International volume grew 2% while North America’s volume was even. |
• | Reported net revenues declined 4%. Excluding the impact of structural changes, comparable currency neutral net revenues grew 2%. |
• | Reported operating income declined 1%. Excluding the impact of structural changes, comparable currency neutral operating income grew 7% while we accelerated investments behind our brands. |
• | Reported EPS was $0.36, down 6%, and comparable EPS was $0.44, down 4%. Comparable currency neutral EPS increased 5%. |
• | Gained both global volume and value share in nonalcoholic ready-to-drink beverages, with value share gains ahead of volume share gains. |
• | As part of the expansion of our productivity and reinvestment program announced in February, we are on track to invest an incremental $400 million in 2014 media initiatives in order to accelerate top-line growth. |
• | Cash from operations was $1.1 billion. |
Three Months Ended March 28, 2014 | ||||||
% Favorable / (Unfavorable) | ||||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | Comparable Currency Neutral Operating Income Excluding Structural | ||
Total Company | 2 | (4) | (1) | 4 | 7 | |
Eurasia & Africa | 2 | (2) | 7 | 23 | ||
Europe | (4) | 10 | 5 | 4 | ||
Latin America | 1 | (10) | (12) | 8 | ||
North America | 0 | (2) | 25 | (8) | ||
Asia Pacific | 7 | (5) | (8) | 2 | ||
Bottling Investments | (10) | (18) | — | (79) |
Three Months Ended March 28, 2014 | ||||||||
% 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 | 0 | 2 | (4) | (2) | (4) | 0 | 2 | |
Eurasia & Africa | 1 | 9 | (12) | 0 | (2) | 11 | ||
Europe | (2) | 10 | 2 | 0 | 10 | 8 | ||
Latin America | (4) | 11 | (17) | 0 | (10) | 7 | ||
North America | (1) | 0 | (1) | 0 | (2) | (1) | ||
Asia Pacific | 8 | (6) | (7) | 0 | (5) | 2 | ||
Bottling Investments | 4 | (4) | (1) | (17) | (18) | (16) |
• | Our Eurasia and Africa Group grew volume 2%, cycling a strong 15%, and maintained volume share in NARTD beverages. Four of the group’s five business units delivered volume growth for the quarter despite a challenging macroeconomic environment and social unrest in certain markets. |
• | Price/mix increased a strong 9% due to positive pricing in the majority of markets coupled with favorable geographic mix. Reported operating income grew 7% in the quarter with comparable currency neutral operating income increasing 23%, reflecting solid revenue growth as well as the timing and tight control of operating expenses, partially offset by increased investments in our brands. |
• | During the quarter, Eurasia and Africa continued to focus on driving executional capabilities in the marketplace, programming around the Olympics, and integrated marketing campaigns such as “Coke with Meals”. Sparkling beverage volume grew 1%, led by brand Coca-Cola in Russia, which increased 9%, as we concluded a robust calendar of marketing activities related to the Sochi 2014 Winter Olympics. Still beverage volume grew 7% in the quarter, resulting in volume and value share gains, with balanced volume growth across all categories. |
• | Volume in our Europe Group was down 4%, driven primarily by the shift of the Easter holiday into the second quarter this year and the impact of our bottling partner maintaining disciplined pricing in Great Britain while transitioning into a new 1.75L consumer-relevant package for sparkling beverages. |
• | Concentrate sales were ahead of unit case sales primarily due to the timing of shipments. For the full year, we expect concentrate sales to be in line with unit case sales. The consolidation of the innocent juice and smoothie business in second quarter 2013 delivered 7 points of Europe’s price/mix and disproportionately contributed to net revenues as compared to operating income due to the higher cost structure associated with a finished goods business and our level of investment in innocent as we continue to build and expand the business. Reported operating income increased 5% in the quarter. Comparable currency neutral operating income increased 4% in the quarter, driven by positive pricing in the majority of markets, favorable geographic mix and the favorable timing of operating expenses, partially offset by the consolidation of the innocent business. |
• | Our sparkling beverage volume declined 5% in the quarter, while still beverage volume grew 1%. |
• | Volume growth of 1% in Latin America in the quarter was driven by renewed momentum in our Brazil business unit, which benefited from robust marketing campaigns, centered around the FIFA World CupTM and the Carnival holiday, as well as favorable weather. Volume in our Latin Center (+5%) and South Latin (+2%) business units continued to grow, partially offset by a low single-digit volume decline in Mexico given the new excise tax that impacted the beverage industry and our business. |
• | Unit case sales were ahead of concentrate sales primarily due to the timing of shipments. For the full year, we expect concentrate sales to be in line with unit case sales. Price/mix for the group increased 11%, reflecting positive pricing in all four business units as well as the underlying inflationary environment in several markets. Reported operating income decreased 12% in the quarter, with comparable currency neutral operating income up 8%, reflecting positive pricing coupled with favorable geographic mix, partially offset by strong investments in our brands, including investments related to the FIFA World CupTM. |
• | Sparkling beverage volume for the group was down 1%, reflecting the impact of the new excise tax in Mexico, while we drove sparkling volume growth in the remaining three business units, leading to maintained volume share in core sparkling beverages. Still beverage volume grew high single digits, driven by solid growth across all business units, resulting in volume and value share gains in total still beverages, including ready-to-drink teas, sports drinks and packaged water. |
• | Our North America Group delivered even volume versus the prior year quarter while gaining value share and maintaining volume share. |
• | Price/mix for our sparkling business increased 2%, reflecting the further implementation of our new pricing strategy, while overall price/mix for the group was even. Reported operating income increased 25%, which includes items impacting comparability, principally net gains/losses related to our economic hedges. Comparable currency neutral operating income declined 8% in the quarter, reflecting one less selling day in the quarter, the shift in the Easter holiday and the timing of operating expenses, and is expected to normalize |
• | Our sparkling beverage volume declined 1% in the quarter, although it outperformed the rest of the industry as we leveraged our occasion-brand-price-package-channel (OBPPC) architecture to deliver value share growth ahead of volume share growth. Brand Coca-Cola volume was even in the quarter, a sequential improvement, and we saw significant improvement in brand health metrics driven by both the quantity and quality of media investments around Super Bowl and Sochi 2014 Winter Olympics programming. Our flavored sparkling portfolio did well in the quarter, with Fanta up 3% and Sprite up 1%. Still beverage volume grew 3% in the quarter, with balanced growth and volume and value share gains across most still beverage categories, making this the 16th consecutive quarter that our still beverage portfolio has either maintained or gained both volume and value share. Powerade continued its growth trajectory, up 9%, with growth coming from both the base business and the new Powerade Zero Drops. Our juice and juice drinks business continues to grow volume, led by Simply, up 10%, with significant improvement in brand health metrics driven by both the quantity and quality of media investments. |
• | Our Asia Pacific Group grew volume 7% in the quarter, resulting in volume share growth in total NARTD beverages. Growth was broad based, including 12% growth in China, 6% growth in India and 3% growth in Japan. |
• | Concentrate sales in the quarter were ahead of unit case sales primarily due to the timing of shipments. For the full year, we expect concentrate sales to be in line with unit case sales. Unfavorable price/mix in the quarter was primarily a result of geographic mix as well as shifts in product and channel mix within individual markets. Reported operating income was down 8% in the quarter. Comparable currency neutral operating income increased 2% in the quarter, reflecting volume growth partially offset by unfavorable price/mix and continued investments behind our brands. |
• | Sparkling beverage volume increased low single digits in the quarter, led by brand Coca-Cola (+2%) and Sprite (+4%), resulting in volume and value share gains. Still beverage volume grew double digits in the quarter, with volume share gains in total still beverages, including juices and juice drinks, ready-to-drink teas, packaged water and sports drinks. |
• | Our Bottling Investments Group (BIG) grew volume 5% in the quarter on a comparable basis, led by 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 10% in the quarter. |
• | The reported operating loss for the quarter was $26 million, which includes restructuring charges associated with our Company-owned bottling operations in Germany. Comparable currency neutral operating income decreased 79% due to the structural changes referenced above and one less selling day in the quarter, partially offset by improved performance in certain markets. |
• | 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, unless otherwise noted. “Unit case” means a unit of measurement equal to 24 eight-ounce servings of finished beverage. “Unit case volume” means the number of unit cases (or unit case equivalents) of Company beverages directly or indirectly sold by the Company and its bottling partners to customers. |
• | First quarter 2014 financial results were impacted by one less selling day, and fourth quarter 2014 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. |
• | As previously announced, effective Jan. 1, 2014, the Company renamed our Pacific operating segment the Asia Pacific operating segment. |
• | 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 | |||||||||
March 28, 2014 | March 29, 2013 | % Change1 | |||||||
Net Operating Revenues | $ | 10,576 | $ | 11,035 | (4) | ||||
Cost of goods sold | 4,083 | 4,324 | (6) | ||||||
Gross Profit | 6,493 | 6,711 | (3) | ||||||
Selling, general and administrative expenses | 3,989 | 4,182 | (5) | ||||||
Other operating charges | 128 | 121 | 6 | ||||||
Operating Income | 2,376 | 2,408 | (1) | ||||||
Interest income | 123 | 116 | 6 | ||||||
Interest expense | 124 | 102 | 21 | ||||||
Equity income (loss) — net | 71 | 87 | (19) | ||||||
Other income (loss) — net | (241 | ) | (165 | ) | (46) | ||||
Income Before Income Taxes | 2,205 | 2,344 | (6) | ||||||
Income taxes | 579 | 575 | 0 | ||||||
Consolidated Net Income | 1,626 | 1,769 | (8) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 7 | 18 | (57) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,619 | $ | 1,751 | (8) | ||||
Diluted Net Income Per Share2 | $ | 0.36 | $ | 0.39 | (6) | ||||
Average Shares Outstanding — Diluted2 | 4,464 | 4,530 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended March 28, 2014 and March 29, 2013, basic net income per share was $0.37 for 2014 and $0.39 for 2013 based on average shares outstanding — basic of 4,401 million for 2014 and 4,455 million for 2013. 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) | |||||||
March 28, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 9,131 | $ | 10,414 | |||
Short-term investments | 6,918 | 6,707 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 16,049 | 17,121 | |||||
Marketable securities | 3,384 | 3,147 | |||||
Trade accounts receivable, less allowances of $63 and $61, respectively | 5,233 | 4,873 | |||||
Inventories | 3,357 | 3,277 | |||||
Prepaid expenses and other assets | 3,029 | 2,886 | |||||
Total Current Assets | 31,052 | 31,304 | |||||
Equity Method Investments | 10,283 | 10,393 | |||||
Other Investments | 2,844 | 1,119 | |||||
Other Assets | 4,655 | 4,661 | |||||
Property, Plant and Equipment — net | 14,860 | 14,967 | |||||
Trademarks With Indefinite Lives | 6,745 | 6,744 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,403 | 7,415 | |||||
Goodwill | 12,343 | 12,312 | |||||
Other Intangible Assets | 1,104 | 1,140 | |||||
Total Assets | $ | 91,289 | $ | 90,055 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,959 | $ | 9,577 | |||
Loans and notes payable | 18,250 | 16,901 | |||||
Current maturities of long-term debt | 1,551 | 1,024 | |||||
Accrued income taxes | 296 | 309 | |||||
Total Current Liabilities | 30,056 | 27,811 | |||||
Long-Term Debt | 18,640 | 19,154 | |||||
Other Liabilities | 3,414 | 3,498 | |||||
Deferred Income Taxes | 6,257 | 6,152 | |||||
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 | 12,332 | 12,276 | |||||
Reinvested earnings | 61,937 | 61,660 | |||||
Accumulated other comprehensive income (loss) | (3,594 | ) | (3,432 | ) | |||
Treasury stock, at cost — 2,648 and 2,638 shares, respectively | (39,781 | ) | (39,091 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 32,654 | 33,173 | |||||
Equity Attributable to Noncontrolling Interests | 268 | 267 | |||||
Total Equity | 32,922 | 33,440 | |||||
Total Liabilities and Equity | $ | 91,289 | $ | 90,055 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Three Months Ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 1,626 | $ | 1,769 | |||
Depreciation and amortization | 473 | 473 | |||||
Stock-based compensation expense | 39 | 47 | |||||
Deferred income taxes | 13 | 157 | |||||
Equity (income) loss — net of dividends | (65 | ) | (77 | ) | |||
Foreign currency adjustments | 280 | 184 | |||||
Significant (gains) losses on sales of assets — net | — | (1 | ) | ||||
Other operating charges | 84 | 74 | |||||
Other items | 46 | 36 | |||||
Net change in operating assets and liabilities | (1,430 | ) | (2,184 | ) | |||
Net cash provided by operating activities | 1,066 | 478 | |||||
Investing Activities | |||||||
Purchases of investments | (4,369 | ) | (3,506 | ) | |||
Proceeds from disposals of investments | 2,595 | 2,225 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (85 | ) | (28 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | — | 690 | |||||
Purchases of property, plant and equipment | (449 | ) | (498 | ) | |||
Proceeds from disposals of property, plant and equipment | 68 | 35 | |||||
Other investing activities | 27 | (136 | ) | ||||
Net cash provided by (used in) investing activities | (2,213 | ) | (1,218 | ) | |||
Financing Activities | |||||||
Issuances of debt | 10,926 | 12,585 | |||||
Payments of debt | (9,567 | ) | (10,065 | ) | |||
Issuances of stock | 191 | 417 | |||||
Purchases of stock for treasury | (875 | ) | (1,523 | ) | |||
Dividends | — | — | |||||
Other financing activities | (470 | ) | 21 | ||||
Net cash provided by (used in) financing activities | 205 | 1,435 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (341 | ) | 25 | ||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | (1,283 | ) | 720 | ||||
Balance at beginning of period | 10,414 | 8,442 | |||||
Balance at end of period | $ | 9,131 | $ | 9,162 |
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 | |||||||||||||||||||||||||||||||
March 28, 2014 | March 29, 2013 | % Fav. / (Unfav.) | March 28, 2014 | March 29, 2013 | % Fav. / (Unfav.) | March 28, 2014 | March 29, 2013 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 658 | $ | 669 | (2 | ) | $ | 303 | $ | 282 | 7 | $ | 308 | $ | 289 | 7 | |||||||||||||||||
Europe | 1,293 | 1,177 | 10 | 719 | 683 | 5 | 731 | 694 | 5 | ||||||||||||||||||||||||
Latin America | 1,111 | 1,228 | (10 | ) | 668 | 763 | (12 | ) | 667 | 764 | (13 | ) | |||||||||||||||||||||
North America | 4,793 | 4,887 | (2 | ) | 428 | 341 | 25 | 425 | 342 | 24 | |||||||||||||||||||||||
Asia Pacific | 1,315 | 1,390 | (5 | ) | 557 | 602 | (8 | ) | 560 | 604 | (7 | ) | |||||||||||||||||||||
Bottling Investments | 1,673 | 2,038 | (18 | ) | (26 | ) | 39 | — | 22 | 109 | (79 | ) | |||||||||||||||||||||
Corporate | 33 | 44 | (24 | ) | (273 | ) | (302 | ) | 9 | (508 | ) | (458 | ) | (11 | ) | ||||||||||||||||||
Eliminations | (300 | ) | (398 | ) | 24 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 10,576 | $ | 11,035 | (4 | ) | $ | 2,376 | $ | 2,408 | (1 | ) | $ | 2,205 | $ | 2,344 | (6 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $159 million for Europe, $17 million for Latin America, $3 million for North America, $105 million for Asia Pacific and $16 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $75 million for North America, $7 million for Asia Pacific, $42 million for Bottling Investments and $4 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. |
• | Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $226 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 $6 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
• | Intersegment revenues were $157 million for Europe, $71 million for Latin America, $4 million for North America, $146 million for Asia Pacific and $20 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $82 million for North America, $8 million for Asia Pacific, $21 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 $3 million for North America due to the refinement of previously established accruals related to the loss or damage of certain fixed assets as a result of Hurricane Sandy. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Corporate due to transaction costs associated with the pending merger of certain bottling partners. |
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee which has operations in Venezuela. |
• | Income (loss) before income taxes was reduced by $30 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 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, S.A.B. de C.V. |
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 March 28, 2014 | ||||||||||||||||||||||||||||||||
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) | $ | 10,576 | $ | 4,083 | $ | 6,493 | 61.4 | % | $ | 3,989 | $ | 128 | $ | 2,376 | 22.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (42 | ) | 42 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (86 | ) | 86 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 8 | 56 | (48 | ) | (3 | ) | — | (45 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 10,584 | $ | 4,139 | $ | 6,445 | 60.9 | % | $ | 3,986 | $ | — | $ | 2,459 | 23.2 | % | ||||||||||||||||
Three Months Ended March 29, 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) | $ | 11,035 | $ | 4,324 | $ | 6,711 | 60.8 | % | $ | 4,182 | $ | 121 | $ | 2,408 | 21.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (21 | ) | 21 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (102 | ) | 102 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (1 | ) | 1 | |||||||||||||||||||||||||
Other Items | 4 | (75 | ) | 79 | (3 | ) | 3 | 79 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 11,039 | $ | 4,249 | $ | 6,790 | 61.5 | % | $ | 4,179 | $ | — | $ | 2,611 | 23.7 | % | ||||||||||||||||
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) | (6) | (3) | (5) | 6 | (1) | ||||||||||||||||||||||||||
% Currency Impact | (4) | (2) | (5) | (2) | — | (11) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (4) | 2 | (2) | — | 10 | ||||||||||||||||||||||||||
% Structural Impact | (2) | (2) | (2) | (2) | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 2 | (1) | 4 | 0 | — | 13 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (4) | (3) | (5) | (5) | — | (6) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (4) | (2) | (5) | (2) | — | (10) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (1) | 0 | (2) | — | 4 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (2) | (2) | (2) | (2) | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 2 | 2 | 2 | 0 | — | 7 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 28, 2014 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share1 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 124 | $ | 71 | $ | (241 | ) | $ | 2,205 | $ | 579 | 26.2 | % | $ | 7 | $ | 1,619 | $ | 0.36 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 42 | — | — | 42 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 86 | 32 | — | 54 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 6 | — | 6 | 1 | — | 5 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other Items | — | 21 | 226 | 202 | (22 | ) | — | 224 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (5 | ) | — | 5 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 124 | $ | 98 | $ | (15 | ) | $ | 2,541 | $ | 585 | 23.0 | % | $ | 7 | $ | 1,949 | $ | 0.44 | ||||||||||||||||||
Three Months Ended March 29, 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 share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 102 | $ | 87 | $ | (165 | ) | $ | 2,344 | $ | 575 | 24.6 | % | $ | 18 | $ | 1,751 | $ | 0.39 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 21 | — | — | 21 | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 102 | 40 | — | 62 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 30 | — | 30 | 3 | — | 27 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (1 | ) | — | (4 | ) | — | 4 | — | |||||||||||||||||||||||||||
Other Items | — | 9 | 140 | 228 | 28 | — | 200 | 0.04 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (1 | ) | — | 1 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 102 | $ | 126 | $ | (26 | ) | $ | 2,725 | $ | 641 | 23.5 | % | $ | 18 | $ | 2,066 | $ | 0.46 | ||||||||||||||||||
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) | 21 | (19) | (46) | (6) | 0 | (57) | (8) | (6) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 21 | (23) | 40 | (7) | (9) | (57) | (6) | (4) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,464 million average shares outstanding — diluted |
2 | 4,530 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 March 28, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 303 | $ | 719 | $ | 668 | $ | 428 | $ | 557 | $ | (26 | ) | $ | (273 | ) | $ | 2,376 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 42 | — | 42 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 75 | 7 | — | 4 | 86 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (53 | ) | — | (1 | ) | 9 | (45 | ) | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 303 | $ | 719 | $ | 668 | $ | 450 | $ | 564 | $ | 15 | $ | (260 | ) | $ | 2,459 | ||||||||||||||||
Three Months Ended March 29, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 282 | $ | 683 | $ | 763 | $ | 341 | $ | 602 | $ | 39 | $ | (302 | ) | $ | 2,408 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 21 | — | 21 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | — | — | 82 | 8 | — | 10 | 102 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||
Other Items | — | — | — | 68 | — | 8 | 3 | 79 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 284 | $ | 683 | $ | 763 | $ | 491 | $ | 610 | $ | 68 | $ | (288 | ) | $ | 2,611 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 7 | 5 | (12) | 25 | (8) | — | 9 | (1) | |||||||||||||||||||||||||
% Currency Impact | (16) | 1 | (21) | (1) | (9) | — | (4) | (11) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 23 | 4 | 8 | 26 | 2 | — | 13 | 10 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 7 | 5 | (12) | (8) | (8) | (78) | 10 | (6) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (16) | 1 | (21) | 0 | (9) | 1 | (3) | (10) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 23 | 4 | 8 | (8) | 2 | (79) | 12 | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||
(UNAUDITED) | |||||||
Operating Expense Leverage: | |||||||
Three Months Ended March 28, 2014 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (1) | (3) | 2 | ||||
% Change — Currency Neutral Reported | 10 | 2 | 8 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 13 | 4 | 8 | ||||
% Change — After Considering Items (Non-GAAP) | (6) | (5) | (1) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | 0 | 4 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 7 | 2 | 4 | ||||
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: | ||||||||||
Three Months Ended March 28, 2014 | Three Months Ended March 29, 2013 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 191 | $ | 417 | ||||||
Purchases of Stock for Treasury | (875 | ) | (1,523 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (6 | ) | 16 | |||||||
Net Change in Treasury Stock Payables2 | (23 | ) | 11 | |||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (713 | ) | $ | (1,079 | ) |
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. |