![]() ![]() ![]() ![]() | 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 grew 1% and organic revenue grew 8% |
• | Reported EPS was $0.35 and comparable EPS was $0.48 |
• | Gained global value share in nonalcoholic ready-to-drink beverages |
• | Cash from operations increased to $1.6 billion |
• | Maintain underlying full-year currency neutral growth expectations |
Percent Change | |
Unit Case Volume | 1 |
Sparkling Beverages | 1 |
Still Beverages | 1 |
Concentrate Sales/Reported Volume | 5 |
Price/Mix | 3 |
Currency | (6) |
Acquisitions & Divestitures | (1) |
Reported Net Revenues | 1 |
Organic Revenues * | 8 |
Reported Income Before Taxes | (10) |
Comparable CN Income Before Taxes (Structurally Adjusted) ** | 13 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | We gained global value share in nonalcoholic ready-to-drink (NARTD) beverages in the quarter. We continued to strengthen and diversify our brand portfolio across key markets and categories as we gained global value share in sparkling and still beverages, juice and juice drinks, ready-to-drink tea and packaged water. |
• | Global sparkling beverage volume grew 1% with solid performance across most key brands, including 1% growth in brand Coca-Cola, 5% growth in Coke Zero, 4% growth in Sprite and 3% growth in Fanta. Growth in these brands was partially offset by a 6% decline in Diet Coke. |
• | Global still beverage volume grew 1% reflecting growth in ready-to-drink tea, value-added dairy and packaged water. Volume growth in these categories was partially offset by a decline in juice and juice drinks attributable to price increases taken to cover higher input costs and continued industry softness in certain markets. |
• | Organic revenue grew 8% driven by concentrate sales growth and 3 points of positive price/mix. Concentrate sales growth benefited from the impact of six additional days and the timing of the Easter holiday. The impact of the six additional days on organic revenue growth was partially offset by cycling favorable timing of concentrate shipments in the first quarter of 2014. We expect concentrate sales and unit case sales to be generally in line for the full year. The positive price/mix was driven by our continued rational approach to pricing and |
• | Comparable currency neutral income before taxes (structurally adjusted) outpaced organic revenue growth primarily due to cycling higher input costs at the beginning of 2014 and positive leverage between operating income and income before taxes. The benefit of these items was partially offset by increased marketing investments and the impact of the provision enacted in Venezuela in early 2014 that imposes a maximum threshold on profit margins. |
• | The combined impact of structural items and the provision in Venezuela resulted in a 2 point headwind on net operating revenues and a 3 point headwind on income before taxes, which is consistent with the outlook we provided earlier this year. |
• | The reported effective tax rate and the underlying annual effective tax rate were 20.9% and 22.5%, respectively. The variance between the reported rate and the underlying rate was due to the tax effect of various items impacting comparability, separately disclosed 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. |
• | Reported EPS was $0.35 and comparable EPS was $0.48. Items impacting comparability reduced reported EPS by a net $0.13 and were primarily related to the early extinguishment of certain long-term debt, costs associated with our previously announced productivity program, and charges related to our Venezuelan operations. For additional details on items impacting comparability, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Fluctuations in foreign currency exchange rates resulted in an 8 point headwind on comparable operating income and a 6 point headwind on both comparable income before taxes and EPS. The currency impact on income before taxes was less than our original expectations due to slightly more than a $0.01 benefit related to foreign currency remeasurement gains associated with the euro-denominated debt issued during the first quarter. |
• | Cash from operations was $1.6 billion, up 48%, primarily due to efficient management of working capital and the impact of six additional days, partially offset by an unfavorable impact from foreign currency exchange rates. |
• | Net share repurchases totaled $386 million. |
Percent Change | |
Unit Case Volume | 4 |
Sparkling Beverages | 4 |
Still Beverages | 4 |
Concentrate Sales | 4 |
Price/Mix | 3 |
Currency | (10) |
Acquisitions & Divestitures | 0 |
Reported Net Revenues | (3) |
Organic Revenues * | 7 |
Reported Income Before Taxes | (7) |
Comparable CN Income Before Taxes ** | 4 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 7% driven by concentrate sales growth and 3 points of positive price/mix. The impact of the six additional days on organic revenue growth was partially offset by timing of concentrate shipments in our Central, East & West Africa business unit. We expect concentrate sales and unit case sales to be generally in line for the full year. The positive price/mix was primarily attributable to favorable product mix and positive pricing across most key markets. |
• | Comparable currency neutral income before taxes trailed organic revenue growth due to higher input costs and increased marketing investments, partially offset by higher equity income associated with our joint ventures in the juice and juice drinks category in our Eurasia and Africa group. |
• | We gained value and volume share in total NARTD beverages, sparkling beverages and still beverages. Sparkling beverage volume growth was driven by 4% growth in Trademark Coca-Cola. Still beverage volume growth was driven by 4% growth in juice and juice drinks and 8% growth in packaged water. Unit case volume growth was relatively balanced across the group with 9% growth in both our Southern Africa and Central, East & West Africa business units, and 4% growth in our Middle East & North Africa business unit. Volume growth in these markets was partially offset by a high single-digit decline in Russia. |
Percent Change | |
Unit Case Volume | 1 |
Sparkling Beverages | 0 |
Still Beverages | 4 |
Concentrate Sales | 5 |
Price/Mix | 0 |
Currency | (11) |
Acquisitions & Divestitures | 0 |
Reported Net Revenues | (6) |
Organic Revenues * | 5 |
Reported Income Before Taxes | (1) |
Comparable CN Income Before Taxes ** | 3 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 5% driven by concentrate sales growth including the impact of six additional days and the timing of the Easter holiday. Price/mix was even as the industry remains highly price sensitive in a deflationary environment. The impact of the six additional days on organic revenue growth was partially offset by cycling favorable timing of concentrate shipments in the first quarter of 2014. We expect concentrate sales and unit case sales to be generally in line for the full year. |
• | Comparable currency neutral income before taxes trailed organic revenue growth primarily due to higher input costs and increased marketing investments. |
• | We gained value and volume share in core sparkling and still beverages driven by strong marketing investments and the impact of new product launches in both categories. We continued to leverage innovation to strengthen and diversify our brand portfolio to capitalize on opportunities across our European markets. Trademark Coca-Cola grew 1% including the benefit of the continued rollout of Coca-Cola Life in select markets. Still beverage volume growth was driven by juice and juice drinks, including double-digit growth of the innocent brand. |
Percent Change | |
Unit Case Volume | 0 |
Sparkling Beverages | 0 |
Still Beverages | 2 |
Concentrate Sales | 7 |
Price/Mix | 4 |
Currency | (15) |
Acquisitions & Divestitures | 0 |
Reported Net Revenues | (4) |
Organic Revenues * | 11 |
Reported Income Before Taxes | (12) |
Comparable CN Income Before Taxes ** | 7 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 11% driven by concentrate sales growth and 4 points of positive price/mix. Concentrate sales growth was primarily driven by the benefit of six additional days. The positive price/mix reflects an increase in pricing and favorable product mix in our Mexico, Brazil and South Latin business units. Comparable currency neutral income before taxes trailed organic revenue growth primarily due to higher input costs and increased marketing investments, partially offset by higher equity income from our value-added dairy joint ventures in Latin America. |
• | Operating margins were unfavorably impacted by the provision enacted in Venezuela in early 2014 that imposes a maximum threshold on profit margins, which began to impact our operating results in the second quarter of 2014. |
• | We gained value and volume share in total NARTD beverages, sparkling beverages and still beverages. Unit case volume reflected low single-digit growth in both Mexico and our South Latin business unit, as well as mid single-digit growth in our Latin Center business unit, partially offset by a mid single-digit volume decline in Brazil. Volume growth in still beverages was driven by value-added dairy and packaged water. |
Percent Change | |
Unit Case Volume | 0 |
Sparkling Beverages | (1) |
Still Beverages | 2 |
Concentrate Sales | 8 |
Price/Mix | 2 |
Currency | (1) |
Acquisitions & Divestitures | (3) |
Reported Net Revenues | 6 |
Organic Revenues * | 10 |
Reported Income Before Taxes | 15 |
Comparable CN Income Before Taxes ** | 27 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 10% driven by concentrate sales growth and 2 points of positive price/mix. Growth in concentrate sales was driven by the benefit of six additional days and the timing of the Easter holiday. After adjusting for the additional days, growth in concentrate sales outpaced unit case sales primarily due to timing of shipments. We expect concentrate sales and unit case sales to be generally in line for the full year. |
• | Comparable currency neutral income before taxes outpaced organic revenue growth primarily due to cycling higher input costs at the beginning of 2014, timing of operating expenses and the impact of our ongoing productivity initiatives, partially offset by increased marketing investments and the structural impact related to refranchised territories. |
• | We gained value share in total NARTD beverages for the 20th consecutive quarter driven by an increase in both the quality and quantity of our marketing investments and our continued rational approach to pricing and disciplined price/pack strategies. We also gained value share in sparkling beverages, still beverages, juice and juice drinks, ready-to-drink tea and packaged water. Still beverage volume growth was driven by strong double-digit growth in Gold Peak tea and smartwater. |
Percent Change | |
Unit Case Volume | 3 |
Sparkling Beverages | 6 |
Still Beverages | (1) |
Concentrate Sales | 3 |
Price/Mix | 3 |
Currency | (8) |
Acquisitions & Divestitures | 0 |
Reported Net Revenues | (2) |
Organic Revenues * | 6 |
Reported Income Before Taxes | (2) |
Comparable CN Income Before Taxes ** | 5 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 6% driven by concentrate sales growth and 3 points of positive price/mix. The impact of the six additional days on organic revenue growth was partially offset by cycling favorable timing of concentrate shipments in the first quarter of the prior year. We expect concentrate sales and unit case sales to be generally in line for the full year. The positive price/mix was driven by favorable product mix. |
• | Comparable currency neutral income before taxes trailed organic revenue growth primarily due to higher input costs and increased marketing investments, partially offset by the efficient management of operating expenses. |
• | Unit case volume growth reflected double-digit growth in India and low single-digit growth in China, partially offset by a low single-digit decline in Japan. In China, sparkling beverage volume grew 5% with balanced growth across our sparkling brand portfolio, partially offset by a mid single-digit decline in still beverages reflecting continued industry softness in the juice and juice drinks category. In Japan, the decline in unit case volume was primarily attributable to cycling 3% growth in the first quarter of 2014 ahead of the consumption tax increase that went into effect April 1, 2014. Despite the decline in unit case volume, we gained value and volume share in total NARTD beverages, ready-to-drink tea, ready-to-drink coffee and packaged water in Japan. |
Percent Change | |
Unit Case Volume | 4 |
Reported Volume | 11 |
Price/Mix | (2) |
Currency | (9) |
Acquisitions & Divestitures | 0 |
Reported Net Revenues | 0 |
Organic Revenues * | 8 |
Reported Income Before Taxes | NM |
Comparable CN Income Before Taxes ** | 26 |
* | Organic revenue is a non-GAAP financial measure that excludes or otherwise adjusts for the impact of changes in foreign currency exchange rates and acquisitions and divestitures, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue grew 8% driven by reported volume growth, partially offset by 2 points of unfavorable price/mix. The reported volume growth reflects the benefit of six additional days. The unfavorable price/mix was primarily attributable to channel, package and geographic mix. |
• | Comparable currency neutral income before taxes outpaced organic revenue growth primarily due to the continued strong performance by our Company-owned bottling operations in several markets including Germany, India and Vietnam. |
• | We estimate that the net impact of structural items on full-year 2015 results will be a slight headwind on net revenue growth, and we have no material changes to our prior guidance on income before taxes. |
• | We expect fluctuations in foreign currency exchange rates to have an unfavorable impact on our reported results in 2015. Based on current spot rates, our existing hedge positions, and the cycling of our prior year rates, we estimate that currency will be an approximate 6 point headwind on net revenues, a 10 point headwind on operating income, and a 7 point headwind on income before taxes for the full year. For the second quarter of 2015, we estimate that currency will be an approximate 7 point headwind on net revenues, a 10 point headwind on operating income and a 5 to 6 point headwind on income before taxes. |
• | The underlying effective annual tax rate on operations in 2015 is expected to be 22.5%. |
• | We are targeting full-year 2015 net share repurchases of $2.0 to $3.0 billion. |
• | Given the above, the Company expects full-year comparable currency neutral EPS growth to be mid single digits, roughly in line with our growth rate in 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. |
• | For our geographic operating segments, the reference to "concentrate sales" growth in the table used to reconcile reported net revenue growth represents the percent change attributable to the increase (decrease) in concentrate sales volume (expressed in equivalent unit cases) after considering the impact of structural changes. For our Bottling Investments operating segment, the reference to "reported volume" growth in the table used to reconcile reported net revenue growth represents the percent change in net revenues attributable to the increase (decrease) in unit case volume (computed on a reported basis) for consolidated bottling operations after considering the impact of structural changes. |
• | "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 2015 financial results were impacted by six additional days, and fourth quarter 2015 financial results will be impacted by six fewer days. Unit case volume results for the quarters are not impacted by the variance in days due to the average daily sales computation referenced above. |
• | 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 | ||||||||||
April 3, 2015 | March 28, 2014 | % Change1 | ||||||||
Net Operating Revenues | $ | 10,711 | $ | 10,576 | 1 | |||||
Cost of goods sold | 4,103 | 4,083 | 0 | |||||||
Gross Profit | 6,608 | 6,493 | 2 | |||||||
Selling, general and administrative expenses | 4,079 | 3,989 | 2 | |||||||
Other operating charges | 233 | 128 | 82 | |||||||
Operating Income | 2,296 | 2,376 | (3 | ) | ||||||
Interest income | 155 | 123 | 25 | |||||||
Interest expense | 447 | 124 | 260 | |||||||
Equity income (loss) — net | 2 | 71 | (98 | ) | ||||||
Other income (loss) — net | (25 | ) | (241 | ) | 90 | |||||
Income Before Income Taxes | 1,981 | 2,205 | (10 | ) | ||||||
Income taxes | 415 | 579 | (28 | ) | ||||||
Consolidated Net Income | 1,566 | 1,626 | (4 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 9 | 7 | 25 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,557 | $ | 1,619 | (4 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.35 | $ | 0.36 | (3 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,422 | 4,464 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended April 3, 2015 and March 28, 2014, basic net income per share was $0.36 for 2015 and $0.37 for 2014 based on average shares outstanding — basic of 4,365 million for 2015 and 4,401 million for 2014. 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) | |||||||
April 3, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 8,211 | $ | 8,958 | |||
Short-term investments | 8,366 | 9,052 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 16,577 | 18,010 | |||||
Marketable securities | 3,472 | 3,665 | |||||
Trade accounts receivable, less allowances of $362 and $331, respectively | 4,461 | 4,466 | |||||
Inventories | 3,219 | 3,100 | |||||
Prepaid expenses and other assets | 3,605 | 3,066 | |||||
Assets held for sale | 785 | 679 | |||||
Total Current Assets | 32,119 | 32,986 | |||||
Equity Method Investments | 9,851 | 9,947 | |||||
Other Investments | 4,044 | 3,678 | |||||
Other Assets | 4,602 | 4,407 | |||||
Property, Plant and Equipment — net | 14,346 | 14,633 | |||||
Trademarks With Indefinite Lives | 6,424 | 6,533 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 6,620 | 6,689 | |||||
Goodwill | 11,993 | 12,100 | |||||
Other Intangible Assets | 1,017 | 1,050 | |||||
Total Assets | $ | 91,016 | $ | 92,023 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 8,853 | $ | 9,234 | |||
Loans and notes payable | 14,383 | 19,130 | |||||
Current maturities of long-term debt | 2,040 | 3,552 | |||||
Accrued income taxes | 689 | 400 | |||||
Liabilities held for sale | 158 | 58 | |||||
Total Current Liabilities | 26,123 | 32,374 | |||||
Long-Term Debt | 26,087 | 19,063 | |||||
Other Liabilities | 4,296 | 4,389 | |||||
Deferred Income Taxes | 5,432 | 5,636 | |||||
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 | 13,361 | 13,154 | |||||
Reinvested earnings | 63,524 | 63,408 | |||||
Accumulated other comprehensive income (loss) | (7,069 | ) | (5,777 | ) | |||
Treasury stock, at cost — 2,680 and 2,674 shares, respectively | (42,739 | ) | (42,225 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 28,837 | 30,320 | |||||
Equity Attributable to Noncontrolling Interests | 241 | 241 | |||||
Total Equity | 29,078 | 30,561 | |||||
Total Liabilities and Equity | $ | 91,016 | $ | 92,023 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Three Months Ended | |||||||
April 3, 2015 | March 28, 2014 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 1,566 | $ | 1,626 | |||
Depreciation and amortization | 473 | 473 | |||||
Stock-based compensation expense | 60 | 39 | |||||
Deferred income taxes | 8 | 13 | |||||
Equity (income) loss — net of dividends | 8 | (65 | ) | ||||
Foreign currency adjustments | (46 | ) | 280 | ||||
Significant (gains) losses on sales of assets — net | 33 | 0 | |||||
Other operating charges | 139 | 84 | |||||
Other items | 522 | 46 | |||||
Net change in operating assets and liabilities | (1,189 | ) | (1,430 | ) | |||
Net cash provided by operating activities | 1,574 | 1,066 | |||||
Investing Activities | |||||||
Purchases of investments | (4,003 | ) | (4,369 | ) | |||
Proceeds from disposals of investments | 3,746 | 2,595 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (603 | ) | (85 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 229 | 0 | |||||
Purchases of property, plant and equipment | (516 | ) | (449 | ) | |||
Proceeds from disposals of property, plant and equipment | 21 | 68 | |||||
Other investing activities | 314 | 27 | |||||
Net cash provided by (used in) investing activities | (812 | ) | (2,213 | ) | |||
Financing Activities | |||||||
Issuances of debt | 16,373 | 10,926 | |||||
Payments of debt | (15,755 | ) | (9,567 | ) | |||
Issuances of stock | 279 | 191 | |||||
Purchases of stock for treasury | (654 | ) | (875 | ) | |||
Dividends | (1,441 | ) | 0 | ||||
Other financing activities | 21 | (470 | ) | ||||
Net cash provided by (used in) financing activities | (1,177 | ) | 205 | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (332 | ) | (341 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | (747 | ) | (1,283 | ) | |||
Balance at beginning of period | 8,958 | 10,414 | |||||
Balance at end of period | $ | 8,211 | $ | 9,131 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues 1 | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
April 3, 2015 | March 28, 2014 | % Fav. / (Unfav.) | April 3, 2015 | March 28, 2014 | % Fav. / (Unfav.) | April 3, 2015 | March 28, 2014 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 638 | $ | 658 | (3 | ) | $ | 279 | $ | 303 | (8 | ) | $ | 286 | $ | 308 | (7 | ) | |||||||||||||||
Europe | 1,212 | 1,293 | (6 | ) | 716 | 719 | 0 | 724 | 731 | (1 | ) | ||||||||||||||||||||||
Latin America | 1,066 | 1,111 | (4 | ) | 578 | 668 | (13 | ) | 588 | 667 | (12 | ) | |||||||||||||||||||||
North America | 5,101 | 4,793 | 6 | 511 | 428 | 19 | 487 | 425 | 15 | ||||||||||||||||||||||||
Asia Pacific | 1,285 | 1,315 | (2 | ) | 544 | 557 | (2 | ) | 548 | 560 | (2 | ) | |||||||||||||||||||||
Bottling Investments | 1,678 | 1,673 | 0 | 14 | (26 | ) | — | (1 | ) | 22 | — | ||||||||||||||||||||||
Corporate | 40 | 33 | 19 | (346 | ) | (273 | ) | (27 | ) | (651 | ) | (508 | ) | (28 | ) | ||||||||||||||||||
Eliminations | (309 | ) | (300 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 10,711 | $ | 10,576 | 1 | $ | 2,296 | $ | 2,376 | (3 | ) | $ | 1,981 | $ | 2,205 | (10 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the period three months ended April 3, 2015, intersegment revenues were $144 million for Europe, $19 million for Latin America, $4 million for North America, $129 million for Asia Pacific and $13 million for Bottling Investments. During the three months ended March 28, 2014, intersegment revenues were $159 million for Europe, $17 million for Latin America, $3 million for North America, $105 million for Asia Pacific and $16 million for Bottling Investments. |
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 April 3, 2015 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 10,711 | $ | 4,103 | $ | 6,608 | 61.7 | % | $ | 4,079 | $ | 233 | $ | 2,296 | 21.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (35 | ) | 35 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (90 | ) | 90 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | (8 | ) | 3 | (11 | ) | 10 | (108 | ) | 87 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 10,703 | $ | 4,106 | $ | 6,597 | 61.6 | % | $ | 4,089 | $ | — | $ | 2,508 | 23.4 | % | ||||||||||||||||
Three Months Ended March 28, 2014 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 10,576 | $ | 4,083 | $ | 6,493 | 61.4 | % | $ | 3,989 | $ | 128 | $ | 2,376 | 22.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (42 | ) | 42 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (86 | ) | 86 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other Items | 8 | 56 | (48 | ) | (3 | ) | — | (45 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 10,584 | $ | 4,139 | $ | 6,445 | 60.9 | % | $ | 3,986 | $ | — | $ | 2,459 | 23.2 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 1 | 0 | 2 | 2 | 82 | (3) | ||||||||||||||||||||||||||
% Currency Impact | (6) | (5) | (7) | (6) | — | (8) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 7 | 5 | 8 | 8 | — | 5 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 1 | (1) | 2 | 3 | — | 2 | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (6) | (5) | (7) | (6) | — | (8) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 4 | 9 | 9 | — | 10 |
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 April 3, 2015 | |||||||||||||||||||||||||||||||||||||
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) | $ | 447 | $ | 2 | $ | (25 | ) | $ | 1,981 | $ | 415 | 20.9 | % | $ | 9 | $ | 1,557 | $ | 0.35 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 35 | — | — | 35 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 90 | 42 | — | 48 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 73 | — | 73 | 6 | — | 67 | 0.02 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 46 | 46 | 10 | — | 36 | 0.01 | |||||||||||||||||||||||||||||
Other Items | (320 | ) | — | 94 | 501 | 124 | — | 377 | 0.09 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 16 | — | (16 | ) | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 127 | $ | 75 | $ | 115 | $ | 2,726 | $ | 613 | 22.5 | % | $ | 9 | $ | 2,104 | $ | 0.48 | |||||||||||||||||||
Three Months Ended March 28, 2014 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share2 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 124 | $ | 71 | $ | (241 | ) | $ | 2,205 | $ | 579 | 26.2 | % | $ | 7 | $ | 1,619 | $ | 0.36 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 42 | — | — | 42 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 86 | 32 | — | 54 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 6 | — | 6 | 1 | — | 5 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other Items | — | 21 | 226 | 202 | (22 | ) | — | 224 | 0.05 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (5 | ) | — | 5 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 124 | $ | 98 | $ | (15 | ) | $ | 2,541 | $ | 585 | 23.0 | % | $ | 7 | $ | 1,949 | $ | 0.44 | ||||||||||||||||||
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) | 260 | (98) | 90 | (10) | (28) | 25 | (4) | (3) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 3 | (23) | — | 7 | 5 | 26 | 8 | 9 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,422 million average shares outstanding — diluted |
2 | 4,464 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
Income Before Income Taxes and Diluted Net Income Per Share: | |||||
Three Months Ended April 3, 2015 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (10) | (3) | |||
% Currency Impact | 4 | 4 | |||
% Change — Currency Neutral Reported | (14) | (7) | |||
% Structural Impact | 0 | N/A | |||
% Change — Currency Neutral Reported and Adjusted for Structural Impact | (13) | N/A | |||
% Change — After Considering Items (Non-GAAP) | 7 | 9 | |||
% Currency Impact After Considering Items (Non-GAAP) | (6) | (6) | |||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 13 | 15 | |||
% Structural Impact After Considering Items (Non-GAAP) | 0 | N/A | |||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP) | 13 | N/A | |||
Note: | Certain columns may not add due to rounding. |
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 April 3, 2015 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 638 | $ | 1,212 | $ | 1,066 | $ | 5,101 | $ | 1,285 | $ | 1,678 | $ | 40 | $ | (309 | ) | $ | 10,711 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (6 | ) | — | — | (2 | ) | — | (8 | ) | |||||||||||||||||
After Considering Items (Non-GAAP) | $ | 638 | $ | 1,212 | $ | 1,066 | $ | 5,095 | $ | 1,285 | $ | 1,678 | $ | 38 | $ | (309 | ) | $ | 10,703 | ||||||||||
Three Months Ended March 28, 2014 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 658 | $ | 1,293 | $ | 1,111 | $ | 4,793 | $ | 1,315 | $ | 1,673 | $ | 33 | $ | (300 | ) | $ | 10,576 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | 2 | — | — | 6 | — | 8 | ||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 658 | $ | 1,293 | $ | 1,111 | $ | 4,795 | $ | 1,315 | $ | 1,673 | $ | 39 | $ | (300 | ) | $ | 10,584 | ||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | (3) | (6) | (4) | 6 | (2) | 0 | 19 | — | 1 | ||||||||||||||||||||
% Currency Impact | (10) | (11) | (15) | (1) | (8) | (9) | 19 | — | (6) | ||||||||||||||||||||
% Change — Currency Neutral Reported | 7 | 5 | 11 | 7 | 6 | 8 | 0 | — | 7 | ||||||||||||||||||||
% Acquisition & Divestiture Adjustments | 0 | 0 | 0 | (3) | 0 | 0 | 0 | — | (1) | ||||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 7 | 5 | 11 | 10 | 6 | 8 | 0 | — | 8 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (3) | (6) | (4) | 6 | (2) | 0 | (5) | — | 1 | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (10) | (11) | (15) | (1) | (8) | (9) | (6) | — | (6) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 5 | 11 | 7 | 6 | 8 | 0 | — | 7 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||||||
Three Months Ended April 3, 2015 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 286 | $ | 724 | $ | 588 | $ | 487 | $ | 548 | $ | (1 | ) | $ | (651 | ) | $ | 1,981 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 35 | — | 35 | |||||||||||||||||||||||||
Productivity & Reinvestment | 12 | (11 | ) | — | 75 | (5 | ) | (1 | ) | 20 | 90 | ||||||||||||||||||||||
Equity Investees | — | 1 | — | — | — | 72 | — | 73 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | 21 | — | — | 25 | 46 | |||||||||||||||||||||||||
Other Items | — | — | 33 | (18 | ) | 2 | (3 | ) | 487 | 501 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 298 | $ | 714 | $ | 621 | $ | 565 | $ | 545 | $ | 102 | $ | (119 | ) | $ | 2,726 | ||||||||||||||||
Three Months Ended March 28, 2014 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 308 | $ | 731 | $ | 667 | $ | 425 | $ | 560 | $ | 22 | $ | (508 | ) | $ | 2,205 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 42 | — | 42 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 75 | 7 | — | 4 | 86 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other Items | — | — | — | (53 | ) | — | 20 | 235 | 202 | ||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 308 | $ | 731 | $ | 667 | $ | 447 | $ | 567 | $ | 90 | $ | (269 | ) | $ | 2,541 | ||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (7) | (1) | (12) | 15 | (2) | — | (28) | (10) | |||||||||||||||||||||||||
% Currency Impact | (7) | (5) | (14) | 0 | (8) | — | 55 | 4 | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | 4 | 2 | 15 | 6 | — | (83) | (14) | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (4) | (2) | (7) | 26 | (4) | 13 | 56 | 7 | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (7) | (5) | (14) | 0 | (8) | (13) | 27 | (6) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | 3 | 7 | 27 | 5 | 26 | 30 | 13 |
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 April 3, 2015 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (3) | 2 | (5) | ||||
% Change — Currency Neutral Reported | 5 | 8 | (4) | ||||
% Change — After Considering Items (Non-GAAP) | 2 | 2 | 0 | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 10 | 9 | 1 | ||||
Note: | Certain rows may not add due to rounding. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Three Months Ended April 3, 2015 | Three Months Ended March 28, 2014 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 279 | $ | 191 | ||||||
Purchases of Stock for Treasury | (654 | ) | (875 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (1 | ) | (6 | ) | ||||||
Net Change in Treasury Stock Payables2 | (10 | ) | (23 | ) | ||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (386 | ) | $ | (713 | ) |
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. |