![]() ![]() ![]() ![]() | 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 3% in the quarter and 2% year to date. Coca-Cola International volume grew 3% in the quarter while North America volume was even. |
• | Sparkling volume and brand Coca-Cola volume accelerated in North America, Eurasia and Africa, Europe and Asia Pacific in the quarter. |
• | Global price/mix increased 2% in both the quarter and year to date. |
• | Reported net revenues declined 1% in the second quarter and 3% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 3% in both the quarter and year to date. |
• | Reported operating income declined 2% in both the quarter and year to date. Excluding the impact of structural changes, comparable currency neutral operating income grew 5% in the quarter and 6% year to date, resulting in improved operating margins while we continued to invest for growth in our brands with our global system partners. |
• | Second quarter reported EPS was $0.58, down 1%, and comparable EPS was $0.64, up 1%. Comparable currency neutral EPS increased 6%. |
• | Year-to-date cash from operations was $4.5 billion. |
Three Months Ended June 27, 2014 | ||||||
% Favorable / (Unfavorable) | ||||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | Comparable Currency Neutral Operating Income Excluding Structural | ||
Total Company | 3 | (1) | (2) | 2 | 5 | |
Eurasia & Africa | 5 | (4) | (13) | (2) | ||
Europe | 0 | 7 | 7 | 1 | ||
Latin America | 0 | (8) | (13) | (1) | ||
North America | 0 | 0 | 13 | 3 | ||
Asia Pacific | 8 | 0 | 0 | 7 | ||
Bottling Investments | (1) | (8) | (70) | (11) |
Three Months Ended June 27, 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 | 2 | 2 | (2) | (3) | (1) | 0 | 3 | |
Eurasia & Africa | 2 | 3 | (9) | 0 | (4) | 5 | ||
Europe | (2) | 3 | 6 | 0 | 7 | 1 | ||
Latin America | 0 | 7 | (11) | (4) | (8) | 3 | ||
North America | 0 | 1 | (1) | 0 | 0 | 1 | ||
Asia Pacific | 5 | 0 | (5) | 0 | 0 | 5 | ||
Bottling Investments | 8 | (1) | (1) | (14) | (8) | (8) |
Six Months Ended June 27, 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 | (3) | (2) | 3 | 6 | |
Eurasia & Africa | 4 | (3) | (4) | 9 | ||
Europe | (2) | 8 | 6 | 2 | ||
Latin America | 0 | (9) | (13) | 4 | ||
North America | 0 | (1) | 17 | (1) | ||
Asia Pacific | 8 | (3) | (3) | 5 | ||
Bottling Investments | (5) | (13) | (93) | (33) |
Six Months Ended June 27, 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 | 1 | 2 | (3) | (3) | (3) | 0 | 3 | |
Eurasia & Africa | 1 | 6 | (10) | 0 | (3) | 7 | ||
Europe | (2) | 6 | 4 | 0 | 8 | 4 | ||
Latin America | (2) | 9 | (14) | (2) | (9) | 5 | ||
North America | (1) | 1 | (1) | 0 | (1) | 0 | ||
Asia Pacific | 6 | (3) | (6) | 0 | (3) | 4 | ||
Bottling Investments | 6 | (2) | (1) | (16) | (13) | (12) |
• | Our Eurasia and Africa Group grew volume 5% in the quarter, gaining volume share in NARTD beverages. Double-digit volume growth in the Middle East, South Africa, East Africa and Pakistan was tempered by a mid single-digit decline in Russia. Together with our bottling partners, we focused on better marketplace execution, greater consumer choice in package and price options, and programming around the FIFA World CupTM. We gained volume share in sparkling beverages while growing volume 3%, led by brand Coca-Cola. Still beverage volume grew 12% in the quarter, resulting in value share gains, with balanced volume growth across all major categories. |
• | Concentrate sales lagged unit case sales in the quarter, primarily due to cycling the timing of shipments last year in our Middle East and North Africa business unit. For the full year, we expect concentrate sales to be in line with unit case sales. Price/mix increased 3% in the quarter due to positive pricing in the majority of markets coupled with favorable geographic mix. Reported operating income declined 13% in the quarter with comparable currency neutral operating income down 2%, reflecting revenue growth offset by increased investments in our brands as well as higher cost of goods sold due to geographic mix and product and package mix within certain markets. |
• | Following a challenging first quarter, the Europe Group saw improvement in its business during the second quarter as a result of strong activation around the FIFA World CupTM, a shift in the Easter holiday, and stabilizing economic conditions in certain markets. Low single-digit volume growth in our Northwest Europe and Nordics, Germany and Iberia business units was offset by a 4% decline in our Central and Southern Europe business unit, resulting in even volume for the group in the quarter. Sparkling beverage volume was even in the quarter, with brand Coca-Cola and Coca-Cola Zero both delivering positive results. We gained value share in still beverages due largely to gains in juices and juice drinks as well as sports drinks. |
• | Concentrate sales lagged unit case sales in the quarter due to the timing of shipments, but year to date they were in line. The consolidation of the innocent juice and smoothie business in May 2013 delivered 2 points of Europe’s price/mix in the second quarter 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 |
• | Latin America’s volume was even in the quarter, as strong 8% volume growth in our Latin Center business unit was offset by a 3% volume decline in Mexico. Brazil’s volume was even as strong activation around the FIFA World CupTM and improved execution of key entry-level packages and refillable multi-serve packages was offset by aggressive competitive activity and a deteriorating macroeconomic environment in the quarter. We maintained volume share in core sparkling beverages on a 1% volume decline, which reflects the industrywide impact of the excise tax in Mexico enacted at the beginning of this year. Still beverage volume grew 3%, driven by all business units, resulting in volume and value share gains in still beverages, including juices and juice drinks, ready-to-drink teas, and sports drinks. |
• | Price/mix increased 7% in the quarter, reflecting positive pricing in all four business units, particularly in the higher inflationary markets within South Latin. Reported operating income decreased 13% in the quarter with comparable currency neutral operating income down 1%, as positive price/mix was offset by increased marketing investments, primarily related to the FIFA World CupTM, as well as the impact of a new provision in Venezuela that imposed a maximum threshold for profit margins. |
• | Our North America Group accelerated revenue growth in the quarter led by our sparkling business. We gained value share and maintained volume share in total beverages, driven by increased media investments around the FIFA World CupTM and the launch of our Share a Coke campaign. Our sparkling beverage volume was even in the quarter, outperforming the rest of the industry to deliver volume and value share gains. Brand Coca-Cola volume grew 1% in the quarter, a sequential improvement, while our flavored sparkling portfolio also performed well, with Fanta up 4% and Sprite up 2%. Solid growth in these core sparkling brands was tempered by softness in Diet Coke. Our still beverage business grew value share and maintained volume share in the quarter on 1% volume growth, making this the 17th consecutive quarter that our still beverage portfolio has either maintained or gained both |
• | During the second quarter, we began transitioning newly refranchised territories as we move forward in establishing our 21st Century U.S. Beverage Partnership Model. These transactions had a nominal structural impact on net revenues and operating income in the second quarter. |
• | Price/mix for our sparkling business increased 3% in the quarter, reflecting the continued implementation of our new pricing strategy, while overall price/mix for the group increased 1%. Reported operating income increased 13% in the quarter, which includes items impacting comparability, principally net gains/losses related to our economic hedges. Comparable currency neutral operating income increased 3% in the quarter, reflecting revenue growth and margin expansion even as we increased our brand investments. |
• | Our Asia Pacific Group grew volume 8% in the quarter, with all five business units contributing growth. The group’s sparkling portfolio grew volume 9% in the quarter, with brand Coca-Cola and Sprite both contributing significantly to this growth. Still beverage volume grew 7% in the quarter, with volume share gains in ready-to-drink teas and packaged water. China continued its momentum into the second quarter, delivering 9% volume growth behind a strong start to the summer’s Share a Coke campaign and new product innovations targeting higher price points, and gained volume and value share in sparkling beverages. India grew volume double digits due to advancements in our price/pack architecture as well as a delayed monsoon season that led to an extended summer. Despite the first increase in Japan’s consumption tax in over 15 years, our business grew volume 1%, leading to volume share gains in both core sparkling and still beverages. |
• | Concentrate sales in the quarter lagged unit case sales primarily due to cycling the timing of shipments last year. After considering the impact of one less selling day in the first half of this year, concentrate sales were roughly in line with unit cases year to date. Price/mix in the quarter was even as unfavorable geographic mix balanced positive price/mix within the majority of markets. Reported operating income was even in the quarter. Comparable currency neutral operating income increased 7% in the quarter, primarily reflecting growth in concentrate shipments and improving margins. |
• | Our Bottling Investments Group (BIG) grew volume 8% 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 our Brazilian bottling operations in 2013 and the restructuring of our Company-owned juice operations in Russia. BIG volume, including the impact of structural changes, was down 1% in the quarter. |
• | Reported operating income decreased 70% in the quarter. Comparable currency neutral operating income decreased 11% due to the structural changes referenced above, partially offset by solid performance in the underlying business, led by India, China and Germany. |
• | 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 carbonated energy drinks and 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 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Three Months Ended | ||||||||||
June 27, 2014 | June 28, 2013 | % Change1 | ||||||||
Net Operating Revenues | $ | 12,574 | $ | 12,749 | (1 | ) | ||||
Cost of goods sold | 4,819 | 4,989 | (3 | ) | ||||||
Gross Profit | 7,755 | 7,760 | 0 | |||||||
Selling, general and administrative expenses | 4,384 | 4,385 | 0 | |||||||
Other operating charges | 201 | 132 | 52 | |||||||
Operating Income | 3,170 | 3,243 | (2 | ) | ||||||
Interest income | 144 | 129 | 11 | |||||||
Interest expense | 107 | 122 | (12 | ) | ||||||
Equity income (loss) — net | 254 | 246 | 3 | |||||||
Other income (loss) — net | (77 | ) | 29 | — | ||||||
Income Before Income Taxes | 3,384 | 3,525 | (4 | ) | ||||||
Income taxes | 779 | 831 | (6 | ) | ||||||
Consolidated Net Income | 2,605 | 2,694 | (3 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 10 | 18 | (52 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,595 | $ | 2,676 | (3 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.58 | $ | 0.59 | (1 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,454 | 4,527 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended June 27, 2014 and June 28, 2013, basic net income per share was $0.59 for 2014 and $0.60 for 2013 based on average shares outstanding — basic of 4,391 million for 2014 and 4,446 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 Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Six Months Ended | ||||||||||
June 27, 2014 | June 28, 2013 | % Change1 | ||||||||
Net Operating Revenues | $ | 23,150 | $ | 23,784 | (3 | ) | ||||
Cost of goods sold | 8,902 | 9,313 | (4 | ) | ||||||
Gross Profit | 14,248 | 14,471 | (2 | ) | ||||||
Selling, general and administrative expenses | 8,373 | 8,567 | (2 | ) | ||||||
Other operating charges | 329 | 253 | 30 | |||||||
Operating Income | 5,546 | 5,651 | (2 | ) | ||||||
Interest income | 267 | 245 | 9 | |||||||
Interest expense | 231 | 224 | 3 | |||||||
Equity income (loss) — net | 325 | 333 | (2 | ) | ||||||
Other income (loss) — net | (318 | ) | (136 | ) | (133 | ) | ||||
Income Before Income Taxes | 5,589 | 5,869 | (5 | ) | ||||||
Income taxes | 1,358 | 1,406 | (3 | ) | ||||||
Consolidated Net Income | 4,231 | 4,463 | (5 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 17 | 36 | (54 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 4,214 | $ | 4,427 | (5 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.95 | $ | 0.98 | (3 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,459 | 4,528 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the six months ended June 27, 2014 and June 28, 2013, basic net income per share was $0.96 for 2014 and $0.99 for 2013 based on average shares outstanding — basic of 4,396 million for 2014 and 4,450 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) | |||||||
June 27, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 11,618 | $ | 10,414 | |||
Short-term investments | 6,524 | 6,707 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 18,142 | 17,121 | |||||
Marketable securities | 3,467 | 3,147 | |||||
Trade accounts receivable, less allowances of $59 and $61, respectively | 5,870 | 4,873 | |||||
Inventories | 3,536 | 3,277 | |||||
Prepaid expenses and other assets | 2,856 | 2,886 | |||||
Total Current Assets | 33,871 | 31,304 | |||||
Equity Method Investments | 10,857 | 10,393 | |||||
Other Investments | 3,601 | 1,119 | |||||
Other Assets | 4,805 | 4,661 | |||||
Property, Plant and Equipment — net | 14,918 | 14,967 | |||||
Trademarks With Indefinite Lives | 6,798 | 6,744 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,284 | 7,415 | |||||
Goodwill | 12,296 | 12,312 | |||||
Other Intangible Assets | 1,059 | 1,140 | |||||
Total Assets | $ | 95,489 | $ | 90,055 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,575 | $ | 9,577 | |||
Loans and notes payable | 20,081 | 16,901 | |||||
Current maturities of long-term debt | 1,519 | 1,024 | |||||
Accrued income taxes | 454 | 309 | |||||
Total Current Liabilities | 32,629 | 27,811 | |||||
Long-Term Debt | 18,643 | 19,154 | |||||
Other Liabilities | 3,447 | 3,498 | |||||
Deferred Income Taxes | 6,469 | 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 | 12,675 | 12,276 | |||||
Reinvested earnings | 63,194 | 61,660 | |||||
Accumulated other comprehensive income (loss) | (2,986 | ) | (3,432 | ) | |||
Treasury stock, at cost — 2,655 and 2,638 shares, respectively | (40,572 | ) | (39,091 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 34,071 | 33,173 | |||||
Equity Attributable to Noncontrolling Interests | 230 | 267 | |||||
Total Equity | 34,301 | 33,440 | |||||
Total Liabilities and Equity | $ | 95,489 | $ | 90,055 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Six Months Ended | |||||||
June 27, 2014 | June 28, 2013 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 4,231 | $ | 4,463 | |||
Depreciation and amortization | 967 | 947 | |||||
Stock-based compensation expense | 112 | 92 | |||||
Deferred income taxes | (67 | ) | 100 | ||||
Equity (income) loss — net of dividends | (124 | ) | (132 | ) | |||
Foreign currency adjustments | 260 | 159 | |||||
Significant (gains) losses on sales of assets — net | 140 | (23 | ) | ||||
Other operating charges | 120 | 83 | |||||
Other items | 6 | 22 | |||||
Net change in operating assets and liabilities | (1,175 | ) | (1,755 | ) | |||
Net cash provided by operating activities | 4,470 | 3,956 | |||||
Investing Activities | |||||||
Purchases of investments | (7,895 | ) | (7,077 | ) | |||
Proceeds from disposals of investments | 6,192 | 5,224 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (332 | ) | (308 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 45 | 690 | |||||
Purchases of property, plant and equipment | (1,030 | ) | (1,069 | ) | |||
Proceeds from disposals of property, plant and equipment | 134 | 57 | |||||
Other investing activities | (242 | ) | (225 | ) | |||
Net cash provided by (used in) investing activities | (3,128 | ) | (2,708 | ) | |||
Financing Activities | |||||||
Issuances of debt | 21,267 | 22,779 | |||||
Payments of debt | (18,122 | ) | (19,454 | ) | |||
Issuances of stock | 650 | 951 | |||||
Purchases of stock for treasury | (1,953 | ) | (2,978 | ) | |||
Dividends | (1,342 | ) | (1,249 | ) | |||
Other financing activities | (438 | ) | 87 | ||||
Net cash provided by (used in) financing activities | 62 | 136 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (200 | ) | (420 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 1,204 | 964 | |||||
Balance at beginning of period | 10,414 | 8,442 | |||||
Balance at end of period | $ | 11,618 | $ | 9,406 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 732 | $ | 765 | (4 | ) | $ | 290 | $ | 332 | (13 | ) | $ | 313 | $ | 351 | (11 | ) | |||||||||||||||
Europe | 1,569 | 1,468 | 7 | 892 | 836 | 7 | 904 | 869 | 4 | ||||||||||||||||||||||||
Latin America | 1,118 | 1,215 | (8 | ) | 633 | 726 | (13 | ) | 636 | 730 | (13 | ) | |||||||||||||||||||||
North America | 5,717 | 5,713 | 0 | 827 | 731 | 13 | 682 | 732 | (7 | ) | |||||||||||||||||||||||
Asia Pacific | 1,723 | 1,730 | 0 | 846 | 847 | 0 | 851 | 853 | 0 | ||||||||||||||||||||||||
Bottling Investments | 2,060 | 2,238 | (8 | ) | 38 | 125 | (70 | ) | 254 | 354 | (28 | ) | |||||||||||||||||||||
Corporate | 50 | 53 | (6 | ) | (356 | ) | (354 | ) | 0 | (256 | ) | (364 | ) | 30 | |||||||||||||||||||
Eliminations | (395 | ) | (433 | ) | 9 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 12,574 | $ | 12,749 | (1 | ) | $ | 3,170 | $ | 3,243 | (2 | ) | $ | 3,384 | $ | 3,525 | (4 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $184 million for Europe, $13 million for Latin America, $7 million for North America, $173 million for Asia Pacific and $18 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $58 million for North America, $1 million for Asia Pacific, $66 million for Bottling Investments and $30 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 $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. |
• | Income (loss) before income taxes was reduced by $140 million for North America primarily due to the derecognition of intangible assets as a result of refranchising certain territories in North America to three of its unconsolidated bottling partners. |
• | Income (loss) before income taxes were reduced by $21 million for Corporate as a result of a write-down of receivables related to concentrate sales to our bottling partner in Venezuela due to limited government-approved exchange rate conversion mechanisms. |
• | Intersegment revenues were $175 million for Europe, $76 million for Latin America, $5 million for North America, $157 million for Asia Pacific and $20 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $6 million for Europe, $55 million for North America, $6 million for Asia Pacific, $20 million for Bottling Investments and $46 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Asia Pacific and $1 million for Corporate due to the refinement of previously established accruals related to the Company's 2008-2011 productivity initiatives. |
• | Income (loss) before income taxes was reduced by $144 million for Corporate due to charges related to the then pending merger of four of the Company's Japanese bottling partners. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA") issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | June 27, 2014 | June 28, 2013 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 1,390 | $ | 1,434 | (3 | ) | $ | 593 | $ | 614 | (4 | ) | $ | 621 | $ | 640 | (3 | ) | |||||||||||||||
Europe | 2,862 | 2,645 | 8 | 1,611 | 1,519 | 6 | 1,635 | 1,563 | 5 | ||||||||||||||||||||||||
Latin America | 2,229 | 2,443 | (9 | ) | 1,301 | 1,489 | (13 | ) | 1,303 | 1,494 | (13 | ) | |||||||||||||||||||||
North America | 10,510 | 10,600 | (1 | ) | 1,255 | 1,072 | 17 | 1,107 | 1,074 | 3 | |||||||||||||||||||||||
Asia Pacific | 3,038 | 3,120 | (3 | ) | 1,403 | 1,449 | (3 | ) | 1,411 | 1,457 | (3 | ) | |||||||||||||||||||||
Bottling Investments | 3,733 | 4,276 | (13 | ) | 12 | 164 | (93 | ) | 276 | 463 | (40 | ) | |||||||||||||||||||||
Corporate | 83 | 97 | (14 | ) | (629 | ) | (656 | ) | 4 | (764 | ) | (822 | ) | 7 | |||||||||||||||||||
Eliminations | (695 | ) | (831 | ) | 16 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 23,150 | $ | 23,784 | (3 | ) | $ | 5,546 | $ | 5,651 | (2 | ) | $ | 5,589 | $ | 5,869 | (5 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $343 million for Europe, $30 million for Latin America, $10 million for North America, $278 million for Asia Pacific and $34 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $133 million for North America, $8 million for Asia Pacific, $108 million for Bottling Investments and $34 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 $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. |
• | Income (loss) before income taxes was reduced by $140 million for North America primarily due to the derecognition of intangible assets as a result of refranchising certain territories in North America to three of its unconsolidated bottling partners. |
• | Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $247 million for Corporate due to the devaluation of the Venezuelan bolivar, including a write-down of receivables related to concentrate sales to our bottling partner in Venezuela as well as our proportionate share of the charge incurred by this bottler, an equity method investee. |
• | Income (loss) before income taxes was reduced by $12 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Six Months Ended (continued) |
• | Intersegment revenues were $332 million for Europe, $147 million for Latin America, $9 million for North America, $303 million for Asia Pacific and $40 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $6 million for Europe, $137 million for North America, $14 million for Asia Pacific, $41 million for Bottling Investments and $56 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Asia Pacific and $1 million for Corporate due to the refinement of previously established accruals related to the Company's 2008-2011 productivity initiatives. |
• | Operating income (loss) and income (loss) before income taxes were increased by $3 million for North America due to the refinement of previously established accruals related to the loss or damage of certain fixed assets as a result of Hurricane Sandy. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to transaction costs associated with certain of the Company's bottling partners. |
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee which has operations in Venezuela. |
• | Income (loss) before income taxes was reduced by $144 million for Corporate due to charges related to the then pending merger of four of the Company's Japanese bottling partners. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by a net $33 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended June 27, 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) | $ | 12,574 | $ | 4,819 | $ | 7,755 | 61.7 | % | $ | 4,384 | $ | 201 | $ | 3,170 | 25.2 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (66 | ) | 66 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (89 | ) | 89 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (28 | ) | 13 | (41 | ) | 4 | (46 | ) | 1 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,546 | $ | 4,832 | $ | 7,714 | 61.5 | % | $ | 4,388 | $ | — | $ | 3,326 | 26.5 | % | ||||||||||||||||
Three Months Ended June 28, 2013 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 12,749 | $ | 4,989 | $ | 7,760 | 60.9 | % | $ | 4,385 | $ | 132 | $ | 3,243 | 25.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (20 | ) | 20 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (113 | ) | 113 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | (5 | ) | (1 | ) | 6 | ||||||||||||||||||||||||
Other Items | (1 | ) | (38 | ) | 37 | (1 | ) | — | 38 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,748 | $ | 4,951 | $ | 7,797 | 61.2 | % | $ | 4,379 | $ | — | $ | 3,418 | 26.8 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (1) | (3) | 0 | 0 | 52 | (2) | ||||||||||||||||||||||||||
% Currency Impact | (2) | (1) | (3) | (1) | — | (5) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 1 | (2) | 3 | 1 | — | 2 | ||||||||||||||||||||||||||
% Structural Impact | (3) | (2) | (3) | (2) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 3 | 0 | 5 | 4 | — | 6 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (2) | (1) | 0 | — | (3) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (1) | (3) | (1) | — | (4) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (1) | 2 | 2 | — | 2 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (3) | (3) | (3) | (2) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 3 | 1 | 4 | 4 | — | 5 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 27, 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) | $ | 107 | $ | 254 | $ | (77 | ) | $ | 3,384 | $ | 779 | 23.0 | % | $ | 10 | $ | 2,595 | $ | 0.58 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 66 | — | — | 66 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 89 | 34 | — | 55 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | 6 | — | 6 | 1 | — | 5 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 140 | 140 | 51 | — | 89 | 0.02 | |||||||||||||||||||||||||||||
Other Items | — | — | (9 | ) | (8 | ) | (25 | ) | — | 17 | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (26 | ) | — | 26 | 0.01 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 107 | $ | 260 | $ | 54 | $ | 3,677 | $ | 814 | 22.2 | % | $ | 10 | $ | 2,853 | $ | 0.64 | |||||||||||||||||||
Three Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 122 | $ | 246 | $ | 29 | $ | 3,525 | $ | 831 | 23.5 | % | $ | 18 | $ | 2,676 | $ | 0.59 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 20 | — | — | 20 | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 113 | 38 | — | 75 | 0.02 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 3 | — | 3 | — | — | 3 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | 11 | (48 | ) | — | 59 | 0.01 | ||||||||||||||||||||||||||||
Other Items | (23 | ) | — | — | 61 | 23 | — | 38 | 0.01 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 99 | $ | 249 | $ | 34 | $ | 3,731 | $ | 844 | 22.6 | % | $ | 18 | $ | 2,869 | $ | 0.63 | |||||||||||||||||||
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) | (12) | 3 | — | (4) | (6) | (52) | (3) | (1) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 8 | 5 | 62 | (1) | (4) | (53) | (1) | 1 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,454 million average shares outstanding — diluted |
2 | 4,527 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Six Months Ended June 27, 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) | $ | 23,150 | $ | 8,902 | $ | 14,248 | 61.5 | % | $ | 8,373 | $ | 329 | $ | 5,546 | 24.0 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (108 | ) | 108 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (175 | ) | 175 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (20 | ) | 69 | (89 | ) | 1 | (46 | ) | (44 | ) | ||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 23,130 | $ | 8,971 | $ | 14,159 | 61.2 | % | $ | 8,374 | $ | — | $ | 5,785 | 25.0 | % | ||||||||||||||||
Six Months Ended June 28, 2013 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 23,784 | $ | 9,313 | $ | 14,471 | 60.8 | % | $ | 8,567 | $ | 253 | $ | 5,651 | 23.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (41 | ) | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (215 | ) | 215 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | (5 | ) | (2 | ) | 7 | ||||||||||||||||||||||||
Other Items | 3 | (113 | ) | 116 | (4 | ) | 3 | 117 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 23,787 | $ | 9,200 | $ | 14,587 | 61.3 | % | $ | 8,558 | $ | — | $ | 6,029 | 25.3 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (3) | (4) | (2) | (2) | 30 | (2) | ||||||||||||||||||||||||||
% Currency Impact | (3) | (1) | (4) | (2) | — | (7) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (3) | 2 | 0 | — | 5 | ||||||||||||||||||||||||||
% Structural Impact | (3) | (2) | (2) | (2) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 3 | 0 | 5 | 2 | — | 9 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (3) | (2) | (3) | (2) | — | (4) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (3) | (1) | (4) | (2) | — | (7) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (1) | 1 | 0 | — | 3 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (3) | (3) | (2) | (2) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 3 | 2 | 3 | 2 | — | 6 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Six Months Ended June 27, 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) | $ | 231 | $ | 325 | $ | (318 | ) | $ | 5,589 | $ | 1,358 | 24.3 | % | $ | 17 | $ | 4,214 | $ | 0.95 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 108 | — | — | 108 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 175 | 66 | — | 109 | 0.02 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | 12 | — | 12 | 2 | — | 10 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 140 | 140 | 51 | — | 89 | 0.02 | |||||||||||||||||||||||||||||
Other Items | — | 21 | 217 | 194 | (47 | ) | — | 241 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (31 | ) | — | 31 | 0.01 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 231 | $ | 358 | $ | 39 | $ | 6,218 | $ | 1,399 | 22.5 | % | $ | 17 | $ | 4,802 | $ | 1.08 | |||||||||||||||||||
Six Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 224 | $ | 333 | $ | (136 | ) | $ | 5,869 | $ | 1,406 | 23.9 | % | $ | 36 | $ | 4,427 | $ | 0.98 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 41 | — | — | 41 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 215 | 78 | — | 137 | 0.03 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 33 | — | 33 | 3 | — | 30 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 4 | 11 | (52 | ) | — | 63 | 0.01 | ||||||||||||||||||||||||||||
Other Items | (23 | ) | 9 | 140 | 289 | 51 | — | 238 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 201 | $ | 375 | $ | 8 | $ | 6,456 | $ | 1,485 | 23.0 | % | $ | 36 | $ | 4,935 | $ | 1.09 | |||||||||||||||||||
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) | 3 | (2) | (133) | (5) | (3) | (54) | (5) | (3) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 15 | (4) | 393 | (4) | (6) | (55) | (3) | (1) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,459 million average shares outstanding — diluted |
2 | 4,528 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Three Months Ended June 27, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 290 | $ | 892 | $ | 633 | $ | 827 | $ | 846 | $ | 38 | $ | (356 | ) | $ | 3,170 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 66 | — | 66 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 58 | 1 | — | 30 | 89 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (39 | ) | — | 21 | 19 | 1 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 290 | $ | 892 | $ | 633 | $ | 846 | $ | 847 | $ | 125 | $ | (307 | ) | $ | 3,326 | ||||||||||||||||
Three Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 332 | $ | 836 | $ | 726 | $ | 731 | $ | 847 | $ | 125 | $ | (354 | ) | $ | 3,243 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 20 | — | 20 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 6 | — | 55 | 6 | — | 46 | 113 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 6 | 6 | |||||||||||||||||||||||||
Other Items | — | — | — | 41 | — | (1 | ) | (2 | ) | 38 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 332 | $ | 842 | $ | 726 | $ | 827 | $ | 852 | $ | 144 | $ | (305 | ) | $ | 3,418 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (13) | 7 | (13) | 13 | 0 | (70) | 0 | (2) | |||||||||||||||||||||||||
% Currency Impact | (11) | 5 | (12) | 0 | (8) | (3) | 0 | (5) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | (2) | 2 | (1) | 14 | 8 | (67) | (1) | 2 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (13) | 6 | (13) | 2 | (1) | (13) | 0 | (3) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (11) | 5 | (12) | 0 | (8) | (2) | 0 | (4) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (2) | 1 | (1) | 3 | 7 | (11) | (1) | 2 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Six Months Ended June 27, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 593 | $ | 1,611 | $ | 1,301 | $ | 1,255 | $ | 1,403 | $ | 12 | $ | (629 | ) | $ | 5,546 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 108 | — | 108 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 133 | 8 | — | 34 | 175 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (92 | ) | — | 20 | 28 | (44 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 593 | $ | 1,611 | $ | 1,301 | $ | 1,296 | $ | 1,411 | $ | 140 | $ | (567 | ) | $ | 5,785 | ||||||||||||||||
Six Months Ended June 28, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 614 | $ | 1,519 | $ | 1,489 | $ | 1,072 | $ | 1,449 | $ | 164 | $ | (656 | ) | $ | 5,651 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 41 | — | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | 6 | — | 137 | 14 | — | 56 | 215 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||
Other Items | — | — | — | 109 | — | 7 | 1 | 117 | |||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 616 | $ | 1,525 | $ | 1,489 | $ | 1,318 | $ | 1,462 | $ | 212 | $ | (593 | ) | $ | 6,029 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (4) | 6 | (13) | 17 | (3) | (93) | 4 | (2) | |||||||||||||||||||||||||
% Currency Impact | (13) | 3 | (16) | 0 | (8) | (3) | (1) | (7) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 10 | 3 | 4 | 18 | 5 | (90) | 6 | 5 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (4) | 6 | (13) | (2) | (4) | (34) | 4 | (4) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (13) | 3 | (16) | 0 | (8) | (1) | (1) | (7) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 9 | 2 | 4 | (1) | 5 | (33) | 5 | 3 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||
(UNAUDITED) | |||||||
Operating Expense Leverage: | |||||||
Three Months Ended June 27, 2014 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (2) | 0 | (2) | ||||
% Change — Currency Neutral Reported | 2 | 3 | 0 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 6 | 5 | 0 | ||||
% Change — After Considering Items (Non-GAAP) | (3) | (1) | (2) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 2 | 2 | 0 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 5 | 4 | 0 | ||||
Six Months Ended June 27, 2014 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (2) | (2) | 0 | ||||
% Change — Currency Neutral Reported | 5 | 2 | 3 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 9 | 5 | 4 | ||||
% Change — After Considering Items (Non-GAAP) | (4) | (3) | (1) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 3 | 1 | 2 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 6 | 3 | 2 | ||||
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: | ||||||||||
Six Months Ended June 27, 2014 | Six Months Ended June 28, 2013 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 650 | $ | 951 | ||||||
Purchases of Stock for Treasury | (1,953 | ) | (2,978 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 29 | (16 | ) | |||||||
Net Change in Treasury Stock Payables2 | (20 | ) | 36 | |||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (1,294 | ) | $ | (2,007 | ) |
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. |