![]() ![]() ![]() ![]() | Contacts: Investors and Analysts: Tim Leveridge 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 |
• | Reported net revenues were even in the quarter and declined 2% year to date. Excluding the impact of structural changes, comparable currency neutral net revenues grew 1% in the quarter and 2% year to date. |
• | Global unit case volume grew 1% in the quarter and 2% year to date. Coca-Cola International volume grew 1% in the quarter while North America volume declined 1%. |
• | Global price/mix increased 1% in both the quarter and year to date. |
• | Reported operating income increased 10% in the quarter and 2% year to date. Excluding the impact of structural changes, comparable currency neutral operating income grew 5% in both the quarter and year to date, while the Company continued to invest for growth in its brands with its global system partners. |
• | Third quarter reported EPS was $0.48, a decline of 13%, and comparable EPS was $0.53, even with the prior year quarter. Comparable currency neutral EPS increased 6%. |
• | Year-to-date cash from operations was $8.0 billion. |
• | The Coca-Cola Company reported global volume growth of 1% in the third quarter and 2% year to date and gained volume and value share in nonalcoholic ready-to-drink (NARTD) beverages in the quarter. |
• | Global sparkling beverage volume was even in the quarter and grew 1% year to date as a challenging macroeconomic environment, adverse weather in certain regions and competitive pressures in certain markets impacted results. However, on a global basis the Company gained volume and value share in core sparkling beverages in the quarter due, in part, to successful execution of the Share a Coke marketing campaign in many markets around the world. Worldwide brand Coca-Cola volume was even in the quarter while Sprite and Fanta both grew 1%. |
• | The Company reported progress in certain key markets during the quarter despite a challenging macroeconomic environment. In North America, a rational approach to pricing, incremental media investments, high quality marketing programs, and disciplined price/pack strategies emphasizing small packages drove incidence and revenue growth in sparkling beverages. In key emerging markets, including India, Sub-Saharan Africa and the Middle East, our incremental media investments are driving recruitment with solid net revenue and volume growth. This gives us confidence that when we invest in our brands, align on a system plan and focus on execution, we see positive results. |
• | Worldwide still beverage volume grew 2% in the quarter and 5% year to date, with tea contributing 4% volume growth in the quarter and both water and energy drinks volume growing 7%. Volume growth in these beverage categories was partially offset by a decline in juices and juice drinks, due in part to price increases to cover higher input costs in North America, and a decline in sports drinks. The Company maintained global volume share while gaining global value share in total still beverages in the quarter and gained value share in juices and juice drinks, ready-to-drink tea, energy drinks and packaged water. |
• | After adjusting for structural changes, the Company delivered comparable currency neutral net revenue growth of 1% in the quarter, capturing global price/mix of 1%. On a year-to-date basis, comparable currency neutral net revenues grew 2% after adjusting for structural changes. |
• | Excluding the impact of structural changes, comparable currency neutral operating income grew 5% in the quarter and year to date, while the Company increased its media investments by double digits as compared to the prior year. |
• | The Company generated $8.0 billion in cash from operations year to date enabling it to pay a healthy dividend, reinvest in the business and return $1.9 billion to its shareowners through net share repurchases. The Company is now targeting full-year 2014 net share repurchases of $2.5 billion. |
Three Months Ended September 26, 2014 | ||||||
% Favorable / (Unfavorable) | ||||||
Unit Case Volume | Net Revenues | Operating Income | Comparable Currency Neutral Operating Income | Comparable Currency Neutral Operating Income Excluding Structural | ||
Total Company | 1 | 0 | 10 | 3 | 5 | |
Eurasia & Africa | 5 | 6 | 15 | 24 | ||
Europe | (5) | 1 | 1 | 0 | ||
Latin America | 2 | (4) | (9) | (4) | ||
North America | (1) | (2) | (5) | (1) | ||
Asia Pacific | 2 | 5 | 11 | 5 | ||
Bottling Investments | 1 | 0 | (39) | (2) |
Three Months Ended September 26, 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 | 1 | (1) | (1) | 0 | 0 | 1 | |
Eurasia & Africa | 4 | 7 | (5) | 0 | 6 | 11 | 11 | |
Europe | (5) | 3 | 3 | 0 | 1 | (2) | (2) | |
Latin America | 1 | 5 | (5) | (5) | (4) | 0 | 6 | |
North America | (1) | 1 | 0 | (2) | (2) | (2) | 0 | |
Asia Pacific | 4 | (1) | (3) | 5 | 5 | 3 | 3 | |
Bottling Investments | 1 | 0 | 1 | (2) | 0 | (1) | 1 |
Nine Months Ended September 26, 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 | (2) | 2 | 3 | 5 | |
Eurasia & Africa | 4 | 0 | 2 | 13 | ||
Europe | (3) | 6 | 5 | 2 | ||
Latin America | 1 | (7) | (12) | 1 | ||
North America | 0 | (1) | 7 | (1) | ||
Asia Pacific | 5 | 0 | 1 | 5 | ||
Bottling Investments | (3) | (9) | (86) | (26) |
Nine Months Ended September 26, 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 | 1 | (2) | (2) | (2) | 0 | 2 | |
Eurasia & Africa | 2 | 7 | (9) | 0 | 0 | 9 | 9 | |
Europe | (3) | 5 | 4 | 0 | 6 | 2 | 2 | |
Latin America | (1) | 8 | (11) | (3) | (7) | 3 | 7 | |
North America | (1) | 1 | 0 | (1) | (1) | (1) | 0 | |
Asia Pacific | 5 | (2) | (5) | 2 | 0 | 4 | 4 | |
Bottling Investments | 5 | (1) | (1) | (12) | (9) | (9) | 3 |
• | Volume grew 5% in the Eurasia and Africa Group in the quarter leading to volume and value share gains in NARTD beverages. With the exception of the Russia, Ukraine and Belarus business unit, where volume declined 3%, the Company experienced solid volume growth across the group in the quarter driven by activation of the Share a Coke campaign, increased media investments, new packaging introductions and targeted investments in cold-drink equipment. Volume grew high single digits in both the Middle East & North Africa and Central, East & West Africa business units. Sparkling beverage volume grew 5% in the quarter, led by brand Coca-Cola, which helped the Company capture sparkling volume share. Still beverage volume grew 6% in the quarter, leading to volume and value share gains. |
• | Reported operating income grew 15% in the quarter, which included a 9 point headwind from foreign currency. Comparable currency neutral operating income grew 24% reflecting strong net revenue growth, with a good balance of volume and price/mix, and positive operating leverage. Increased brand investments were partially offset by efficient management and timing of operating expenses. Growth in concentrate sales lagged growth in unit case sales due to the timing of shipments in the Middle East & North Africa business unit last year. |
• | Top-line results in Europe were impacted by a 5% decrease in volume in the quarter as poor weather, competitive pressures and a deteriorating macroeconomic environment negatively impacted sales. Sparkling beverages declined mid single digits while still beverage volume declined low single digits. Volume in the Germany and Iberia business units declined 1% and 2%, respectively, in the quarter, yet Germany gained volume and value share in NARTD beverages due to successful marketing campaigns, price/pack architecture enhancements and solid marketplace execution. The Company continues to innovate and to expand its premium brand portfolio, as demonstrated by the launch of Coca-Cola Life and smartwater in Great Britain during the quarter. The Europe Group maintained value share in still beverages benefiting from gains in juices and juice drinks as well as sports drinks. |
• | Reported operating income grew 1% in the quarter, which included a 2 point benefit from foreign currency. Comparable currency neutral operating income was even in the quarter, reflecting a 2% decline in currency neutral net revenues offset by positive operating leverage. Currency neutral net revenues were negatively impacted by a decrease in concentrate sales which was partially offset by a 3% increase in price/mix. Both the |
• | Latin America top-line results were driven by volume growth of 2% in the quarter as sports drinks, water, tea and dairy contributed to still beverage volume growth of 9% while sparkling beverage volume, including brand Coca-Cola, was even. The Latin Center business unit delivered strong volume growth of 7% in the quarter, while the Mexico and South Latin business units grew 2% and 1%, respectively. Volume declined 1% in Brazil in the quarter. Affordability strategies, including returnable PET and entry level packages, are helping to mitigate the impact of high inflation and declining consumer confidence in key markets and leading to immediate consumption packages outperforming future consumption packages in sparkling beverages in Latin America. |
• | Reported operating income decreased 9% in the quarter, which included a 6 point headwind from foreign currency. Comparable currency neutral operating income decreased 4% as strong price/mix and growth in concentrate sales were offset by increased marketing investments and the provision enacted in Venezuela earlier this year that imposes a maximum threshold for profit margins. The strong price/mix reflects positive pricing in the Mexico, Brazil and South Latin business units. |
• | In North America, a rational approach to pricing, incremental media investments, high quality marketing programs and disciplined price/pack strategies emphasizing small packages drove incidence and revenue growth in sparkling beverages as well as value share gains in NARTD beverages for the 18th consecutive quarter. Immediate consumption packages outperformed future consumption packages in sparkling beverages, reflecting our emphasis on recruiting new consumers by offering a variety of entry level packages. Sparkling beverage volume declined 1% in the quarter while sparkling price/mix grew a solid 3% due to strong pricing and the performance of our smaller size packages. A successful Share a Coke campaign activation helped the Company gain value share in the competitive sparkling beverage segment, resulting in the ninth consecutive quarter in which the Company gained or maintained sparkling value share. Still beverage volume declined 1%, while the Company |
• | Reported net revenues decreased 2% in the quarter, which included a 2 point headwind from structural items related to refranchised territories and changes to our process of buying and selling recyclable materials. Positive price/mix of 1% was offset by a decrease in volume. Reported operating income decreased 5%, which included items impacting comparability, principally net gains/losses related to economic hedges. Comparable currency neutral operating income decreased 1%, primarily driven by increased brand investments and the impact of structural items, partially offset by gross margin expansion. |
• | Asia Pacific volume grew 2% in the quarter, with 3% sparkling beverage growth and even still beverage volume, leading to volume and value share gains in NARTD beverages as the Company continued to focus on its recruitment strategy. Among key markets, India delivered volume and value share gains with double-digit volume growth, while China and Japan also delivered volume and value share gains despite volume declines of 1% and 4%, respectively, in the quarter. Although weather was a benefit in India, it negatively impacted the Company’s performance in China and Japan as both countries experienced an unseasonably cool summer. China delivered brand Coca-Cola volume growth of 4% and benefited from the launch of Schweppes C+ earlier in the year, while Japan grew water and tea volume through innovations including I LOHAS Sparkling and a milder green tea formulation for Ayataka. |
• | Reported operating income increased 11% in the quarter, which included a 6 point headwind from foreign currency. Additionally, reported net revenue and operating income growth reflect a benefit from items impacting comparability as the Company cycled the deferral of revenue and gross profit associated with the intercompany portion of concentrate sales to Coca-Cola East Japan (CCEJ) following the closing of the merger of four of the Company’s bottling partners to create CCEJ on July 1, 2013. Comparable currency neutral operating income increased 5%, driven by 4% growth in concentrate sales partially offset by 1 point of negative price/mix in the quarter. Growth in concentrate sales was ahead of growth in unit case sales for the quarter, primarily due to the timing of shipments, but is in line on a year-to-date basis. |
• | Bottling Investments Group (BIG) volume grew 1% in the quarter after adjusting for the impact of the restructuring of Company-owned juice operations in Russia. |
• | Reported operating income decreased 39% in the quarter while comparable currency neutral operating income decreased 2%. |
• | Reported financial performance for the third quarter included the impact of certain structural changes, primarily the refranchising of territories in North America to certain unconsolidated bottling partners, changes in our process of buying and selling recyclable materials in North America, and lower revenues and operating income in the Company’s Venezuelan business. As disclosed last quarter, the Venezuelan government enacted a new provision that imposed a maximum threshold for profit margins. |
• | Reported net revenues were even. Excluding the impact of structural changes, comparable currency neutral net revenues grew 1%, reflecting 1% concentrate sales growth and 1% positive price/mix. Concentrate sales growth and unit case volume growth were in line during the quarter. |
• | Reported gross profit increased 1%. Excluding the impact of structural changes, comparable currency neutral gross profit increased 4%, driven by net revenue growth and gross margin expansion due to geographic mix and a slight tailwind from commodity costs. |
• | Reported operating income grew 10%. Excluding the impact of structural changes, comparable currency neutral operating income increased 5%, which was slightly ahead of gross profit growth. The 1 point of operating expense leverage reflects a double-digit increase in media investments offset by the efficient management of operating expenses and the reversal of certain expenses related to the Company’s long-term incentive plans. Structural changes were a 2 point headwind and foreign currency was a 3 point headwind on operating income during the quarter. Items impacting comparability reduced third quarter 2014 reported operating income by $129 million and reduced third quarter 2013 reported operating income by $376 million. |
• | Although the currency headwind on operating income was in line with the outlook provided last quarter, foreign currency unfavorably impacted EPS by 6 points due to additional currency headwinds related to remeasurement gains/losses recorded in the line item Other income (loss) — net. |
• | Reported EPS was $0.48 and comparable EPS was $0.53. Items impacting comparability reduced third quarter 2014 reported EPS by a net $0.05 and increased third quarter 2013 reported EPS by a net $0.01. Comparable currency neutral EPS increased 6% during the quarter. |
• | The reported effective tax rate for the third quarter was 20.2%, while the underlying effective tax rate on operations for the quarter was 22.5%. The variance between the reported rate and the underlying rate was due to the tax effect of various items impacting comparability, separately disclosed in this document in the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. The underlying effective tax rate does not reflect the impact of significant or unusual items and discrete events, which, if and when they occur, are separately recognized in the appropriate period. |
• | Year-to-date cash from operations was $8.0 billion, up 3%, primarily due to cycling incremental pension contributions last year and the efficient management of working capital, partially offset by an unfavorable impact from foreign currency exchange rates and the deconsolidation of the Company’s Brazilian bottling operations in July 2013. |
• | Year-to-date net share repurchases totaled $1.9 billion. |
• | We expect the impact of structural items to be a 1 to 2 point headwind on net revenues and an approximate 2 point headwind on operating income during the fourth quarter of 2014. |
• | We continue to expect fluctuations in currency exchange rates to have an unfavorable impact on our reported results in 2014. Based on current spot rates, our existing hedge positions, and the cycling of our prior year rates, we expect an approximate 7 point headwind on operating income during the fourth quarter of 2014. We now estimate currency will be a 6 point headwind on our full-year operating income, which is at the high end of the outlook we provided last quarter. |
• | We continue to expect operating leverage to be flat to slightly positive for the full year. |
• | We are now targeting full-year 2014 net share repurchases of $2.5 billion. |
• | Given the above, the Company expects to be below its long-term EPS growth target for 2014. |
• | For details on items impacting comparability in the quarter, see the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | 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 the Company’s 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 the Company’s 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. The Company’s non-GAAP financial information does not represent a comprehensive basis of accounting. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Three Months Ended | ||||||||||
September 26, 2014 | September 27, 2013 | % Change1 | ||||||||
Net Operating Revenues | $ | 11,976 | $ | 12,030 | 0 | |||||
Cost of goods sold | 4,630 | 4,793 | (3 | ) | ||||||
Gross Profit | 7,346 | 7,237 | 1 | |||||||
Selling, general and administrative expenses | 4,507 | 4,424 | 2 | |||||||
Other operating charges | 128 | 341 | (63 | ) | ||||||
Operating Income | 2,711 | 2,472 | 10 | |||||||
Interest income | 169 | 136 | 25 | |||||||
Interest expense | 113 | 90 | 26 | |||||||
Equity income (loss) — net | 205 | 204 | 1 | |||||||
Other income (loss) — net | (312 | ) | 658 | — | ||||||
Income Before Income Taxes | 2,660 | 3,380 | (21 | ) | ||||||
Income taxes | 538 | 925 | (42 | ) | ||||||
Consolidated Net Income | 2,122 | 2,455 | (14 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 8 | 8 | 24 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 2,114 | $ | 2,447 | (14 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.48 | $ | 0.54 | (13 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,445 | 4,498 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended September 26, 2014 and September 27, 2013, basic net income per share was $0.48 for 2014 and $0.55 for 2013 based on average shares outstanding — basic of 4,383 million for 2014 and 4,426 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) | ||||||||||
Nine Months Ended | ||||||||||
September 26, 2014 | September 27, 2013 | % Change1 | ||||||||
Net Operating Revenues | $ | 35,126 | $ | 35,814 | (2 | ) | ||||
Cost of goods sold | 13,532 | 14,106 | (4 | ) | ||||||
Gross Profit | 21,594 | 21,708 | (1 | ) | ||||||
Selling, general and administrative expenses | 12,880 | 12,991 | (1 | ) | ||||||
Other operating charges | 457 | 594 | (23 | ) | ||||||
Operating Income | 8,257 | 8,123 | 2 | |||||||
Interest income | 436 | 381 | 15 | |||||||
Interest expense | 344 | 314 | 10 | |||||||
Equity income (loss) — net | 530 | 537 | (1 | ) | ||||||
Other income (loss) — net | (630 | ) | 522 | — | ||||||
Income Before Income Taxes | 8,249 | 9,249 | (11 | ) | ||||||
Income taxes | 1,896 | 2,331 | (19 | ) | ||||||
Consolidated Net Income | 6,353 | 6,918 | (8 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 25 | 44 | (42 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 6,328 | $ | 6,874 | (8 | ) | ||||
Diluted Net Income Per Share2 | $ | 1.42 | $ | 1.52 | (7 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,454 | 4,518 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the nine months ended September 26, 2014 and September 27, 2013, basic net income per share was $1.44 for 2014 and $1.55 for 2013 based on average shares outstanding — basic of 4,392 million for 2014 and 4,442 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) | |||||||
September 26, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 11,084 | $ | 10,414 | |||
Short-term investments | 9,185 | 6,707 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 20,269 | 17,121 | |||||
Marketable securities | 3,445 | 3,147 | |||||
Trade accounts receivable, less allowances of $58 and $61, respectively | 5,081 | 4,873 | |||||
Inventories | 3,277 | 3,277 | |||||
Prepaid expenses and other assets | 3,277 | 2,886 | |||||
Assets held for sale | 103 | — | |||||
Total Current Assets | 35,452 | 31,304 | |||||
Equity Method Investments | 10,582 | 10,393 | |||||
Other Investments | 3,737 | 1,119 | |||||
Other Assets | 4,850 | 4,661 | |||||
Property, Plant and Equipment — net | 14,738 | 14,967 | |||||
Trademarks With Indefinite Lives | 6,619 | 6,744 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 7,025 | 7,415 | |||||
Goodwill | 12,188 | 12,312 | |||||
Other Intangible Assets | 1,123 | 1,140 | |||||
Total Assets | $ | 96,314 | $ | 90,055 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,517 | $ | 9,577 | |||
Loans and notes payable | 19,175 | 16,901 | |||||
Current maturities of long-term debt | 2,524 | 1,024 | |||||
Accrued income taxes | 528 | 309 | |||||
Liabilities held for sale | 16 | — | |||||
Total Current Liabilities | 32,760 | 27,811 | |||||
Long-Term Debt | 20,111 | 19,154 | |||||
Other Liabilities | 3,383 | 3,498 | |||||
Deferred Income Taxes | 6,391 | 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 | 12,901 | 12,276 | |||||
Reinvested earnings | 63,972 | 61,660 | |||||
Accumulated other comprehensive income (loss) | (3,843 | ) | (3,432 | ) | |||
Treasury stock, at cost — 2,665 and 2,638 shares, respectively | (41,361 | ) | (39,091 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 33,429 | 33,173 | |||||
Equity Attributable to Noncontrolling Interests | 240 | 267 | |||||
Total Equity | 33,669 | 33,440 | |||||
Total Liabilities and Equity | $ | 96,314 | $ | 90,055 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Nine Months Ended | |||||||
September 26, 2014 | September 27, 2013 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 6,353 | $ | 6,918 | |||
Depreciation and amortization | 1,477 | 1,444 | |||||
Stock-based compensation expense | 143 | 155 | |||||
Deferred income taxes | (179 | ) | 179 | ||||
Equity (income) loss — net of dividends | (259 | ) | (270 | ) | |||
Foreign currency adjustments | 305 | 140 | |||||
Significant (gains) losses on sales of assets — net | 410 | (670 | ) | ||||
Other operating charges | 192 | 331 | |||||
Other items | 38 | 137 | |||||
Net change in operating assets and liabilities | (501 | ) | (652 | ) | |||
Net cash provided by operating activities | 7,979 | 7,712 | |||||
Investing Activities | |||||||
Purchases of investments | (14,098 | ) | (11,451 | ) | |||
Proceeds from disposals of investments | 9,558 | 9,601 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (343 | ) | (326 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 73 | 869 | |||||
Purchases of property, plant and equipment | (1,618 | ) | (1,625 | ) | |||
Proceeds from disposals of property, plant and equipment | 150 | 64 | |||||
Other investing activities | (280 | ) | (115 | ) | |||
Net cash provided by (used in) investing activities | (6,558 | ) | (2,983 | ) | |||
Financing Activities | |||||||
Issuances of debt | 33,292 | 31,147 | |||||
Payments of debt | (28,494 | ) | (27,293 | ) | |||
Issuances of stock | 1,058 | 1,079 | |||||
Purchases of stock for treasury | (2,963 | ) | (3,892 | ) | |||
Dividends | (2,680 | ) | (2,494 | ) | |||
Other financing activities | (409 | ) | 70 | ||||
Net cash provided by (used in) financing activities | (196 | ) | (1,383 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (555 | ) | (670 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 670 | 2,676 | |||||
Balance at beginning of period | 10,414 | 8,442 | |||||
Balance at end of period | $ | 11,084 | $ | 11,118 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 709 | $ | 669 | 6 | $ | 265 | $ | 231 | 15 | $ | 272 | $ | 228 | 19 | ||||||||||||||||||
Europe | 1,429 | 1,420 | 1 | 752 | 742 | 1 | 763 | 755 | 1 | ||||||||||||||||||||||||
Latin America | 1,177 | 1,230 | (4 | ) | 653 | 720 | (9 | ) | 654 | 719 | (9 | ) | |||||||||||||||||||||
North America | 5,599 | 5,719 | (2 | ) | 760 | 803 | (5 | ) | 486 | 805 | (40 | ) | |||||||||||||||||||||
Asia Pacific | 1,575 | 1,496 | 5 | 638 | 575 | 11 | 648 | 585 | 11 | ||||||||||||||||||||||||
Bottling Investments | 1,823 | 1,832 | 0 | 14 | 22 | (39 | ) | 205 | 214 | (4 | ) | ||||||||||||||||||||||
Corporate | 43 | 27 | 59 | (371 | ) | (621 | ) | 40 | (368 | ) | 74 | — | |||||||||||||||||||||
Eliminations | (379 | ) | (363 | ) | (4 | ) | — | — | — | — | — | — | |||||||||||||||||||||
Consolidated | $ | 11,976 | $ | 12,030 | 0 | $ | 2,711 | $ | 2,472 | 10 | $ | 2,660 | $ | 3,380 | (21 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $187 million for Europe, $16 million for Latin America, $3 million for North America, $154 million for Asia Pacific and $19 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Eurasia and Africa, $2 million for Europe, $59 million for North America, $2 million for Asia Pacific, $34 million for Bottling Investments and $20 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 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. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Asia Pacific due to a charge associated with certain of the Company's fixed assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to a charge related to our indemnification of a previously consolidated entity. |
• | Income (loss) before income taxes was reduced by $270 million for North America due to the refranchising of certain territories. |
• | Income (loss) before income taxes was reduced by $8 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended (continued) |
• | Intersegment revenues were $188 million for Europe, $22 million for Latin America, $4 million for North America, $128 million for Asia Pacific and $21 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $53 million for North America, $2 million for Asia Pacific, $45 million for Bottling Investments and $41 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of Coca-Cola Enterprises' ("CCE") former North America business. |
• | Operating income (loss) and income (loss) before income taxes was reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Asia Pacific due to a charge associated with certain of the Company's fixed assets. |
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. |
• | Income (loss) before income taxes was increased by $30 million for Corporate due to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. |
• | Income (loss) before income taxes was increased by $8 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | September 26, 2014 | September 27, 2013 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 2,099 | $ | 2,103 | 0 | $ | 858 | $ | 845 | 2 | $ | 893 | $ | 868 | 3 | ||||||||||||||||||
Europe | 4,291 | 4,065 | 6 | 2,363 | 2,261 | 5 | 2,398 | 2,318 | 3 | ||||||||||||||||||||||||
Latin America | 3,406 | 3,673 | (7 | ) | 1,954 | 2,209 | (12 | ) | 1,957 | 2,213 | (12 | ) | |||||||||||||||||||||
North America | 16,109 | 16,319 | (1 | ) | 2,015 | 1,875 | 7 | 1,593 | 1,879 | (15 | ) | ||||||||||||||||||||||
Asia Pacific | 4,613 | 4,616 | 0 | 2,041 | 2,024 | 1 | 2,059 | 2,042 | 1 | ||||||||||||||||||||||||
Bottling Investments | 5,556 | 6,108 | (9 | ) | 26 | 186 | (86 | ) | 481 | 677 | (29 | ) | |||||||||||||||||||||
Corporate | 126 | 124 | 1 | (1,000 | ) | (1,277 | ) | 22 | (1,132 | ) | (748 | ) | (51 | ) | |||||||||||||||||||
Eliminations | (1,074 | ) | (1,194 | ) | 10 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 35,126 | $ | 35,814 | (2 | ) | $ | 8,257 | $ | 8,123 | 2 | $ | 8,249 | $ | 9,249 | (11 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
• | Intersegment revenues were $530 million for Europe, $46 million for Latin America, $13 million for North America, $432 million for Asia Pacific and $53 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Eurasia and Africa, $2 million for Europe, $192 million for North America, $10 million for Asia Pacific, $142 million for Bottling Investments and $54 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 $32 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. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Asia Pacific due to a charge associated with certain of the Company's fixed assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to a charge related to our indemnification of a previously consolidated entity. |
• | Income (loss) before income taxes was reduced by $410 million for North America due to the refranchising of certain territories. |
• | 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 $20 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||
Operating Segments | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Nine Months Ended (continued) |
• | Intersegment revenues were $520 million for Europe, $169 million for Latin America, $13 million for North America, $431 million for Asia Pacific and $61 million for Bottling Investments. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Asia Pacific, $86 million for Bottling Investments and $97 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Operating income (loss) and income (loss) before income taxes were increased by $1 million for 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 was reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Asia Pacific due to a charge associated with certain of the Company's fixed assets. |
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to transaction costs associated with certain of the Company's bottling partners. |
• | Operating income (loss) and income (loss) before income taxes were increased by $3 million for North America due to the refinement of previously established accruals related to the loss or damage of certain fixed assets as a result of Hurricane Sandy. |
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. |
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee which has operations in Venezuela. |
• | Income (loss) before income taxes was reduced by a net $114 million for Corporate due to charges related to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. |
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. |
• | Income (loss) before income taxes was reduced by $25 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. |
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized on the early extinguishment of certain long-term debt. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended September 26, 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) | $ | 11,976 | $ | 4,630 | $ | 7,346 | 61.3 | % | $ | 4,507 | $ | 128 | $ | 2,711 | 22.6 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (34 | ) | 34 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (84 | ) | 84 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (7 | ) | 7 | |||||||||||||||||||||||||
Other Items | 5 | 19 | (14 | ) | (15 | ) | (3 | ) | 4 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 11,981 | $ | 4,649 | $ | 7,332 | 61.2 | % | $ | 4,492 | $ | — | $ | 2,840 | 23.7 | % | ||||||||||||||||
Three Months Ended September 27, 2013 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 12,030 | $ | 4,793 | $ | 7,237 | 60.2 | % | $ | 4,424 | $ | 341 | $ | 2,472 | 20.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (235 | ) | 235 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (97 | ) | 97 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 78 | 18 | 60 | — | — | 60 | ||||||||||||||||||||||||||
Other Items | 7 | 32 | (25 | ) | — | (11 | ) | (14 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,115 | $ | 4,843 | $ | 7,272 | 60.0 | % | $ | 4,424 | $ | — | $ | 2,848 | 23.5 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 0 | (3) | 1 | 2 | (63) | 10 | ||||||||||||||||||||||||||
% Currency Impact | (1) | 0 | (1) | (1) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (3) | 3 | 2 | — | 12 | ||||||||||||||||||||||||||
% Structural Impact | (1) | (1) | (1) | (1) | — | (1) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 1 | (2) | 4 | 3 | — | 13 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (1) | (4) | 1 | 2 | — | 0 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (1) | 0 | (1) | (1) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (4) | 2 | 2 | — | 3 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (1) | (1) | (2) | (1) | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 1 | (3) | 4 | 3 | — | 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 September 26, 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) | $ | 113 | $ | 205 | $ | (312 | ) | $ | 2,660 | $ | 538 | 20.2 | % | $ | 8 | $ | 2,114 | $ | 0.48 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 34 | — | — | 34 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 84 | 30 | — | 54 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | 8 | — | 8 | 1 | — | 7 | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 270 | 277 | 96 | — | 181 | 0.04 | |||||||||||||||||||||||||||||
Other Items | — | — | (19 | ) | (15 | ) | (8 | ) | — | (7 | ) | — | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 29 | — | (29 | ) | (0.01 | ) | |||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 113 | $ | 213 | $ | (61 | ) | $ | 3,048 | $ | 686 | 22.5 | % | $ | 8 | $ | 2,354 | $ | 0.53 | ||||||||||||||||||
Three Months Ended September 27, 2013 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 90 | $ | 204 | $ | 658 | $ | 3,380 | $ | 925 | 27.4 | % | $ | 8 | $ | 2,447 | $ | 0.54 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 235 | — | — | 235 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 97 | 37 | — | 60 | 0.01 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | (8 | ) | — | (8 | ) | (8 | ) | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (645 | ) | (585 | ) | (255 | ) | — | (330 | ) | (0.07 | ) | ||||||||||||||||||||||||
Other Items | — | — | — | (14 | ) | (5 | ) | — | (9 | ) | — | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 20 | — | (20 | ) | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 90 | $ | 196 | $ | 13 | $ | 3,103 | $ | 713 | 23.0 | % | $ | 8 | $ | 2,382 | $ | 0.53 | |||||||||||||||||||
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) | 26 | 1 | — | (21) | (42) | 24 | (14) | (13) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 26 | 9 | — | (2) | (4) | 23 | (1) | 0 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,445 million average shares outstanding — diluted |
2 | 4,498 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 26, 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) | $ | 35,126 | $ | 13,532 | $ | 21,594 | 61.5 | % | $ | 12,880 | $ | 457 | $ | 8,257 | 23.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (142 | ) | 142 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (259 | ) | 259 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | ||||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (7 | ) | 7 | |||||||||||||||||||||||||
Other Items | (15 | ) | 88 | (103 | ) | (14 | ) | (49 | ) | (40 | ) | |||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 35,111 | $ | 13,620 | $ | 21,491 | 61.2 | % | $ | 12,866 | $ | — | $ | 8,625 | 24.6 | % | ||||||||||||||||
Nine Months Ended September 27, 2013 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 35,814 | $ | 14,106 | $ | 21,708 | 60.6 | % | $ | 12,991 | $ | 594 | $ | 8,123 | 22.7 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (276 | ) | 276 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (312 | ) | 312 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | 2 | (2 | ) | |||||||||||||||||||||||||
Transaction Gains/Losses | 78 | 18 | 60 | (5 | ) | (2 | ) | 67 | ||||||||||||||||||||||||
Other Items | 10 | (81 | ) | 91 | (4 | ) | (8 | ) | 103 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 35,902 | $ | 14,043 | $ | 21,859 | 60.9 | % | $ | 12,982 | $ | — | $ | 8,877 | 24.7 | % | ||||||||||||||||
Currency Neutral: | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (2) | (4) | (1) | (1) | (23) | 2 | ||||||||||||||||||||||||||
% Currency Impact | (2) | (1) | (3) | (1) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (3) | 3 | 1 | — | 8 | ||||||||||||||||||||||||||
% Structural Impact | (2) | (2) | (2) | (2) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 2 | (1) | 4 | 2 | — | 10 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (2) | (3) | (2) | (1) | — | (3) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (2) | (1) | (3) | (1) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (2) | 1 | 1 | — | 3 | ||||||||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | (2) | (2) | (2) | (2) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 2 | 0 | 4 | 2 | — | 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) | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 26, 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) | $ | 344 | $ | 530 | $ | (630 | ) | $ | 8,249 | $ | 1,896 | 23.0 | % | $ | 25 | $ | 6,328 | $ | 1.42 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 142 | — | — | 142 | 0.03 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 259 | 96 | — | 163 | 0.04 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity Investees | — | 20 | — | 20 | 3 | — | 17 | — | |||||||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 410 | 417 | 147 | — | 270 | 0.06 | |||||||||||||||||||||||||||||
Other Items | — | 21 | 198 | 179 | (55 | ) | — | 234 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (2 | ) | — | 2 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 344 | $ | 571 | $ | (22 | ) | $ | 9,266 | $ | 2,085 | 22.5 | % | $ | 25 | $ | 7,156 | $ | 1.61 | ||||||||||||||||||
Nine Months Ended September 27, 2013 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 314 | $ | 537 | $ | 522 | $ | 9,249 | $ | 2,331 | 25.2 | % | $ | 44 | $ | 6,874 | $ | 1.52 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 276 | — | — | 276 | 0.06 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 312 | 115 | — | 197 | 0.04 | |||||||||||||||||||||||||||||
Productivity Initiatives | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Equity Investees | — | 25 | — | 25 | (5 | ) | — | 30 | 0.01 | ||||||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (641 | ) | (574 | ) | (307 | ) | — | (267 | ) | (0.06 | ) | ||||||||||||||||||||||||
Other Items | (23 | ) | 9 | 140 | 275 | 46 | — | 229 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 20 | — | (20 | ) | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 291 | $ | 571 | $ | 21 | $ | 9,559 | $ | 2,198 | 23.0 | % | $ | 44 | $ | 7,317 | $ | 1.62 | |||||||||||||||||||
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) | 10 | (1) | — | (11) | (19) | (42) | (8) | (7) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 18 | 0 | — | (3) | (5) | (42) | (2) | (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 | 4,518 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net Operating Revenues by Segment: | |||||||||||||||||||||||||||||
Three Months Ended September 26, 2014 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 709 | $ | 1,429 | $ | 1,177 | $ | 5,599 | $ | 1,575 | $ | 1,823 | $ | 43 | $ | (379 | ) | $ | 11,976 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | 9 | — | 4 | (8 | ) | — | 5 | |||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 709 | $ | 1,429 | $ | 1,177 | $ | 5,608 | $ | 1,575 | $ | 1,827 | $ | 35 | $ | (379 | ) | $ | 11,981 | ||||||||||
Three Months Ended September 27, 2013 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 669 | $ | 1,420 | $ | 1,230 | $ | 5,719 | $ | 1,496 | $ | 1,832 | $ | 27 | $ | (363 | ) | $ | 12,030 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 73 | — | — | — | 78 | ||||||||||||||||||||
Other Items | — | — | — | — | — | — | 7 | — | 7 | ||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 669 | $ | 1,420 | $ | 1,235 | $ | 5,719 | $ | 1,569 | $ | 1,832 | $ | 34 | $ | (363 | ) | $ | 12,115 | ||||||||||
Currency Neutral Net Operating Revenues by Segment: | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | 6 | 1 | (4) | (2) | 5 | 0 | 59 | — | 0 | ||||||||||||||||||||
% Currency Impact | (5) | 3 | (5) | 0 | (3) | 1 | 69 | — | (1) | ||||||||||||||||||||
% Change — Currency Neutral Reported | 11 | (2) | 0 | (2) | 9 | (1) | (10) | — | 0 | ||||||||||||||||||||
% Structural Impact | 0 | 0 | (5) | (2) | 5 | (2) | 0 | — | (1) | ||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 11 | (2) | 6 | 0 | 3 | 1 | (10) | — | 1 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 6 | 1 | (5) | (2) | 0 | 0 | 1 | — | (1) | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (5) | 3 | (5) | 0 | (3) | 1 | 9 | — | (1) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 11 | (2) | 0 | (2) | 3 | (1) | (8) | — | 0 | ||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | 0 | 0 | (6) | (2) | 0 | (2) | 0 | — | (1) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items(Non-GAAP) | 11 | (2) | 6 | 0 | 3 | 1 | (8) | — | 1 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net Operating Revenues by Segment: | |||||||||||||||||||||||||||||
Nine Months Ended September 26, 2014 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 2,099 | $ | 4,291 | $ | 3,406 | $ | 16,109 | $ | 4,613 | $ | 5,556 | $ | 126 | $ | (1,074 | ) | $ | 35,126 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | 9 | — | (20 | ) | (4 | ) | — | (15 | ) | |||||||||||||||||
After Considering Items (Non-GAAP) | $ | 2,099 | $ | 4,291 | $ | 3,406 | $ | 16,118 | $ | 4,613 | $ | 5,536 | $ | 122 | $ | (1,074 | ) | $ | 35,111 | ||||||||||
Nine Months Ended September 27, 2013 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 2,103 | $ | 4,065 | $ | 3,673 | $ | 16,319 | $ | 4,616 | $ | 6,108 | $ | 124 | $ | (1,194 | ) | $ | 35,814 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 73 | — | — | — | 78 | ||||||||||||||||||||
Other Items | — | — | — | 2 | — | — | 8 | — | 10 | ||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 2,103 | $ | 4,065 | $ | 3,678 | $ | 16,321 | $ | 4,689 | $ | 6,108 | $ | 132 | $ | (1,194 | ) | $ | 35,902 | ||||||||||
Currency Neutral Net Operating Revenues by Segment: | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | 0 | 6 | (7) | (1) | 0 | (9) | 1 | — | (2) | ||||||||||||||||||||
% Currency Impact | (9) | 4 | (11) | 0 | (5) | (1) | 5 | — | (2) | ||||||||||||||||||||
% Change — Currency Neutral Reported | 9 | 2 | 3 | (1) | 5 | (8) | (4) | — | 0 | ||||||||||||||||||||
% Structural Impact | 0 | 0 | (3) | (1) | 2 | (12) | 0 | — | (2) | ||||||||||||||||||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 9 | 2 | 7 | 0 | 4 | 3 | (4) | — | 2 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 0 | 6 | (7) | (1) | (2) | (9) | (8) | — | (2) | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (9) | 4 | (11) | 0 | (5) | (1) | (4) | — | (2) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 9 | 2 | 3 | (1) | 4 | (9) | (4) | — | 0 | ||||||||||||||||||||
% Structural Impact After Considering Items (Non-GAAP) | 0 | 0 | (3) | (1) | 0 | (12) | 0 | — | (2) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items(Non-GAAP) | 9 | 2 | 7 | 0 | 4 | 3 | (4) | — | 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: | |||||||||||||||||||||||||||||||||
Three Months Ended September 26, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 265 | $ | 752 | $ | 653 | $ | 760 | $ | 638 | $ | 14 | $ | (371 | ) | $ | 2,711 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 34 | — | 34 | |||||||||||||||||||||||||
Productivity & Reinvestment | 1 | 2 | — | 59 | 2 | — | 20 | 84 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||
Other Items | — | — | — | 2 | — | 10 | (8 | ) | 4 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 266 | $ | 754 | $ | 653 | $ | 821 | $ | 640 | $ | 58 | $ | (352 | ) | $ | 2,840 | ||||||||||||||||
Three Months Ended September 27, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 231 | $ | 742 | $ | 720 | $ | 803 | $ | 575 | $ | 22 | $ | (621 | ) | $ | 2,472 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 45 | 190 | 235 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 1 | — | 53 | 2 | — | 41 | 97 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 55 | — | — | 60 | |||||||||||||||||||||||||
Other Items | — | — | — | (24 | ) | 11 | (8 | ) | 7 | (14 | ) | ||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 231 | $ | 743 | $ | 725 | $ | 830 | $ | 643 | $ | 59 | $ | (383 | ) | $ | 2,848 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 15 | 1 | (9) | (5) | 11 | (39) | 40 | 10 | |||||||||||||||||||||||||
% Currency Impact | (9) | 2 | (6) | 0 | (6) | (1) | 3 | (3) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 24 | 0 | (4) | (5) | 17 | (38) | 37 | 12 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 15 | 2 | (10) | (1) | 0 | (2) | 8 | 0 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (9) | 2 | (6) | 0 | (6) | 0 | 1 | (3) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 24 | 0 | (4) | (1) | 5 | (2) | 7 | 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) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Nine Months Ended September 26, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 858 | $ | 2,363 | $ | 1,954 | $ | 2,015 | $ | 2,041 | $ | 26 | $ | (1,000 | ) | $ | 8,257 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 142 | — | 142 | |||||||||||||||||||||||||
Productivity & Reinvestment | 1 | 2 | — | 192 | 10 | — | 54 | 259 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
CCE Transaction | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||
Other Items | — | — | — | (90 | ) | — | 30 | 20 | (40 | ) | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 859 | $ | 2,365 | $ | 1,954 | $ | 2,117 | $ | 2,051 | $ | 198 | $ | (919 | ) | $ | 8,625 | ||||||||||||||||
Nine Months Ended September 27, 2013 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 845 | $ | 2,261 | $ | 2,209 | $ | 1,875 | $ | 2,024 | $ | 186 | $ | (1,277 | ) | $ | 8,123 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 86 | 190 | 276 | |||||||||||||||||||||||||
Productivity & Reinvestment | 2 | 7 | — | 190 | 16 | — | 97 | 312 | |||||||||||||||||||||||||
Productivity Initiatives | — | — | — | — | (1 | ) | — | (1 | ) | (2 | ) | ||||||||||||||||||||||
CCE Transaction | — | — | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||||||||||
Transaction Gains/Losses | — | — | 5 | — | 55 | — | 7 | 67 | |||||||||||||||||||||||||
Other Items | — | — | — | 85 | 11 | (1 | ) | 8 | 103 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 847 | $ | 2,268 | $ | 2,214 | $ | 2,148 | $ | 2,105 | $ | 271 | $ | (976 | ) | $ | 8,877 | ||||||||||||||||
Currency Neutral Operating Income (Loss) by Segment: | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | 2 | 5 | (12) | 7 | 1 | (86) | 22 | 2 | |||||||||||||||||||||||||
% Currency Impact | (12) | 3 | (13) | 0 | (8) | (2) | 1 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 14 | 2 | 1 | 8 | 9 | (84) | 21 | 8 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 1 | 4 | (12) | (2) | (3) | (27) | 6 | (3) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (12) | 3 | (13) | 0 | (8) | (1) | 0 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 13 | 2 | 1 | (1) | 5 | (26) | 6 | 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 September 26, 2014 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | 10 | 1 | 8 | ||||
% Change — Currency Neutral Reported | 12 | 3 | 10 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 13 | 4 | 9 | ||||
% Change — After Considering Items (Non-GAAP) | 0 | 1 | (1) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 3 | 2 | 0 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 5 | 4 | 1 | ||||
Nine Months Ended September 26, 2014 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | 2 | (1) | 2 | ||||
% Change — Currency Neutral Reported | 8 | 3 | 5 | ||||
% Change — Currency Neutral Reported and Adjusted for Structural Items | 10 | 4 | 6 | ||||
% Change — After Considering Items (Non-GAAP) | (3) | (2) | (1) | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 3 | 1 | 1 | ||||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Items (Non-GAAP) | 5 | 4 | 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: | ||||||||||
Nine Months Ended September 26, 2014 | Nine Months Ended September 27, 2013 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,058 | $ | 1,079 | ||||||
Purchases of Stock for Treasury | (2,963 | ) | (3,892 | ) | ||||||
Net Change in Stock Issuance Receivables1 | — | (17 | ) | |||||||
Net Change in Treasury Stock Payables2 | (21 | ) | 62 | |||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (1,926 | ) | $ | (2,768 | ) |
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. |