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 revenue declined 4% and organic revenue grew 2% in the quarter, impacted by one less day in our reporting calendar. |
• | Reported EPS was $0.34 and comparable EPS was $0.45. |
• | Global volume grew 2%. |
• | Global price/mix was a positive 1%, as solid underlying pricing was partially offset by segment mix. |
• | Comparable currency neutral operating margin expanded. |
• | Gained global value share in nonalcoholic ready-to-drink beverages. |
• | Full-year comparable currency neutral earnings outlook remains unchanged. |
Percent Change | |
Unit Case Volume | 2 |
Sparkling Beverages | 0 |
Still Beverages | 7 |
Concentrate Sales/Reported Volume | 1 |
Price/Mix | 1 |
Currency | (5) |
Acquisitions, Divestitures and Structural Items, Net | (1) |
Reported Net Revenues | (4) |
Organic Revenues * | 2 |
Reported Income Before Taxes | (4) |
Comparable CN Income Before Taxes (Structurally Adjusted) * | 9 |
* | Organic revenue and comparable currency neutral (CN) income before taxes (structurally adjusted) are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue growth of 2% in the quarter was driven by concentrate sales growth and 1 point of positive price/mix. Concentrate sales growth was negatively impacted by one less day in the quarter. After adjusting for the one less day in the quarter, concentrate sales were in line with unit case sales. Price/mix was driven by solid underlying pricing partially offset by 1 point of segment and geographic mix. Acquisitions, divestitures and structural items primarily include the impact of refranchised territories, as well as the net impact of the brand transfer agreement associated with the closing of the transaction with Monster Beverage Corporation (“Monster”) in 2015 and the expanded distribution of Monster's beverage products. |
• | We gained global volume and value share in sparkling beverages in a challenging macro environment. Value share grew ahead of volume share, emphasizing our focus on accelerating our revenue growth management strategies. Sparkling beverage volume was even in the quarter. |
• | In still beverages we gained global volume and value share. Solid volume growth was realized across all key still beverage categories, except juice and juice drinks which registered a small decline in the quarter. |
• | Comparable currency neutral income before taxes (structurally adjusted) growth outpaced organic revenue growth in the quarter primarily due to the impact of our productivity |
• | The reported effective tax rate for the quarter was 21.2%. The underlying effective tax rate 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 the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Reported EPS was $0.34 and comparable EPS was $0.45 in the quarter. Items impacting comparability decreased reported EPS by a net $0.11 and were primarily related to noncash charges related to refranchising certain territories in North America and costs associated with our previously announced productivity, integration and restructuring initiatives. |
• | Fluctuations in foreign currency exchange rates resulted in a 10 point headwind on comparable operating income and a 12 point headwind on both comparable income before taxes and EPS in the quarter. |
• | First quarter cash from operations was $604 million, negatively impacted by contributions to our U.S. pension plans of $471 million, fluctuations in foreign currency exchange rates, and one less day in the quarter. |
• | Net share repurchases totaled $155 million in the quarter. |
Percent Change | |
Unit Case Volume | 0 |
Sparkling Beverages | (2) |
Still Beverages | 5 |
Concentrate Sales | (2) |
Price/Mix | 4 |
Currency | (14) |
Acquisitions, Divestitures and Structural Items, Net | (2) |
Reported Net Revenues | (14) |
Organic Revenues * | 2 |
Reported Income Before Taxes | (14) |
Comparable CN Income Before Taxes * | (3) |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue growth in the quarter was due to solid price/mix, partially offset by the impact of one less day in the quarter and the timing of concentrate shipments in key markets across the segment. The positive price/mix was primarily attributable to favorable product and geographic mix across several markets. Acquisitions, divestitures and structural items primarily reflect the unfavorable impact from the brand transfer agreement associated with the closing of the transaction with Monster in 2015. |
• | Comparable currency neutral income before taxes lagged organic revenue growth in the quarter due to timing of expenses and the unfavorable structural impact of the brand transfer agreement with Monster. |
• | We gained value share in total nonalcoholic ready-to-drink (“NARTD”) beverages in the quarter. The sparkling beverage volume decline in the quarter was primarily driven by a decline in Trademark Coca-Cola. Still beverage volume growth in the quarter was driven by double-digit growth in packaged water, 7% growth in sports drinks and 2% growth in ready-to-drink tea, partially offset by a 1% decline in juice and juice drinks. Unit case volume growth in the quarter included mid single-digit growth in our Central, East & West Africa business unit and 2% growth in our Southern Africa business unit, partially offset by a high single-digit decline in our Russia, Ukraine & Belarus business unit and a low single-digit decline in both our Middle East & North Africa and Turkey, Caucasus & Central Asia business units. |
Percent Change | |
Unit Case Volume | (1) |
Sparkling Beverages | (1) |
Still Beverages | 3 |
Concentrate Sales | (1) |
Price/Mix | 2 |
Currency | 0 |
Acquisitions, Divestitures and Structural Items, Net | (2) |
Reported Net Revenues | (1) |
Organic Revenues * | 0 |
Reported Income Before Taxes | (3) |
Comparable CN Income Before Taxes * | (1) |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue was even reflecting positive price/mix of 2 points, offset by lower concentrate sales which were impacted by one less day in the quarter. The positive price/mix reflects an increase in pricing and favorable product mix in key markets. Acquisitions, divestitures and structural items reflect the unfavorable impact from the brand transfer agreement associated with the closing of the transaction with Monster in 2015. |
• | Comparable currency neutral income before taxes lagged organic revenue in the quarter primarily due to timing of expenses and the unfavorable structural impact of the brand transfer agreement with Monster. |
• | We gained value share in total NARTD beverages in the quarter. The sparkling beverage volume decline in the quarter was driven by a 3% decline in Trademark Coca-Cola, partially offset by 3% growth in Fanta and double-digit growth in energy drinks. Still beverage volume growth in the quarter was driven by 7% growth in packaged water and 5% growth in both sports drinks and ready-to-drink tea, partially offset by a mid single-digit decline in juice and juice drinks. |
Percent Change | |
Unit Case Volume | 1 |
Sparkling Beverages | 0 |
Still Beverages | 5 |
Concentrate Sales | 1 |
Price/Mix | 11 |
Currency | (24) |
Acquisitions, Divestitures and Structural Items, Net | 0 |
Reported Net Revenues | (12) |
Organic Revenues * | 12 |
Reported Income Before Taxes | (12) |
Comparable CN Income Before Taxes * | 12 |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue growth in the quarter was driven by strong positive price/mix reflecting an increase in pricing and product mix. Positive price/mix was realized in each of our four business units, particularly in the higher inflationary markets within our South Latin and Latin Center business units. |
• | Comparable currency neutral income before taxes grew in line with organic revenues in the quarter primarily due to positive operating leverage resulting from our productivity initiatives and timing of expenses, offset by increased marketing investments. |
• | We gained value share in still beverages (excluding packaged water) in the quarter. Sparkling beverage volume was even in the quarter as 5% growth in Coca-Cola Zero and 2% growth in Sprite were offset by a 1% decline in brand Coca-Cola. Still beverage volume growth in the quarter was driven by double-digit growth in both sports drinks and juice and juice drinks, high single-digit growth in ready-to-drink tea and 3% growth in packaged water. Unit case volume growth was driven by 5% growth in Mexico and 3% growth in our Latin Center business unit, partially offset by a 6% decline in Brazil. |
Percent Change | |
Unit Case Volume | 2 |
Sparkling Beverages | 0 |
Still Beverages | 5 |
Concentrate Sales | (1) |
Price/Mix | 3 |
Currency | 0 |
Acquisitions, Divestitures and Structural Items, Net | 0 |
Reported Net Revenues | 2 |
Organic Revenues * | 2 |
Reported Income Before Taxes | 9 |
Comparable CN Income Before Taxes * | 4 |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue growth was driven by 3 points of positive price/mix, partially offset by lower concentrate sales which were impacted by one less day in the quarter. After adjusting for the one less day in the quarter and the impact of acquired volume, concentrate sales growth and unit case sales growth were in line. |
• | Comparable currency neutral income before taxes growth outpaced organic revenue growth in the quarter primarily due to favorable operating leverage resulting from the impact of our productivity initiatives and timing of expenses, partially offset by a net negative 2 point structural impact from refranchised territories and the brand transfer agreement associated with the closing of the transaction with Monster in 2015. |
• | We gained value share in total NARTD beverages for the 24th consecutive quarter driven by the continued increase in the quantity and quality of our marketing investments along with our disciplined approach to pricing and packaging strategies. Sparkling beverage volume was even in the quarter. Growth in Sprite, Fanta and energy drinks was offset by a decline in Trademark Coca-Cola. Still beverage volume growth in the quarter was driven by juice and juice drinks, sports drinks, ready-to-drink tea and packaged water. |
Percent Change | |
Unit Case Volume | 5 |
Sparkling Beverages | 1 |
Still Beverages | 11 |
Concentrate Sales | 6 |
Price/Mix | (5) |
Currency | (2) |
Acquisitions, Divestitures and Structural Items, Net | (3) |
Reported Net Revenues | (4) |
Organic Revenues * | 2 |
Reported Income Before Taxes | 1 |
Comparable CN Income Before Taxes * | 5 |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue growth was driven by strong concentrate sales growth, partially offset by 5 points of negative price/mix. Concentrate sales growth outpaced unit case sales growth due to timing of shipments. The unfavorable price/mix was primarily driven by negative product and geographic mix. Acquisitions, divestitures and structural items reflect the unfavorable impact from the brand transfer agreement associated with the closing of the transaction with Monster in 2015 and a change in the funding arrangement with our bottlers in China. |
• | Comparable currency neutral income before taxes growth outpaced organic revenue growth in the quarter primarily due to favorable operating leverage resulting from the impact of our productivity initiatives and timing of expenses. |
• | We gained value share in total NARTD beverages in the quarter. Sparkling beverage volume growth in the quarter was driven by 3% growth in Trademark Coca-Cola and 2% growth in Fanta, partially offset by a mid single-digit decline in Sprite. Still beverage volume growth in the quarter was driven by double-digit growth in both packaged water and ready-to-drink tea and 8% growth in ready-to-drink coffee, partially offset by a double-digit decline in juice and juice drinks. Unit case volume growth in the quarter reflected double-digit growth in both our India & South West Asia and ASEAN business units and 4% growth in Japan, partially offset by a 2% decline in China. |
Percent Change | |
Unit Case Volume | (4) |
Reported Volume | 0 |
Price/Mix | 0 |
Currency | (3) |
Acquisitions, Divestitures and Structural Items, Net | (1) |
Reported Net Revenues | (4) |
Organic Revenues * | 0 |
Reported Income Before Taxes | (841) |
Comparable CN Income Before Taxes * | 72 |
* | Organic revenue and comparable currency neutral (CN) income before taxes are non-GAAP financial measures. Refer to the Notes and Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | Organic revenue in the quarter was even, in line with reported volume. The even price/mix reflects positive pricing across several of our bottling operations, offset by geographic mix and unfavorable product mix within our China operations. Acquisitions, divestitures and structural items primarily reflect the unfavorable impact of the refranchised North America bottling territories, partially offset by the benefit from the expanded distribution of Monster's beverage products. |
• | Comparable currency neutral income before taxes growth outpaced organic revenue in the quarter primarily due to favorable operating leverage resulting from the impact of our productivity initiatives and timing of expenses, as well as an increase in equity income. |
• | The Company continues to expect organic revenue to be up 4% to 5% in 2016, in line with our long-term target. The net impact of acquisitions, divestitures and structural items on comparable net revenues is expected to be a 4 to 5 point headwind and based on the current spot rates, currency is expected to be a 2 to 3 point headwind, including the impact of hedged positions for the full year. |
• | The Company expects comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016, in line with our long-term target, as strong operating profit growth is expected to be partially offset by increased interest expense. The net impact of structural items is expected to be a 3 to 4 point headwind and based on the current spot rates, currency is expected to be an 8 to 9 point headwind, including the impact of hedged positions for the full year. |
• | Given the above, the Company expects full-year comparable currency neutral EPS growth to be 4% to 6% including the impact of 3 to 4 points of structural headwind, primarily due to refranchising, on comparable currency neutral income before taxes. Based on the current spot rates, currency is expected to be an 8 to 9 point headwind, including the impact of hedged positions for the full year. |
• | In addition to the above, the Company expects the following: |
• | The underlying effective annual tax rate in 2016 is expected to be 22.5%. |
• | We are targeting full-year 2016 net share repurchases of $2.0 to $2.5 billion. |
• | For the second quarter of 2016, we estimate that based on the current spot rates, currency will be a 2 to 3 point headwind on comparable net revenues and an 11 point headwind on comparable income before taxes, including the impact of hedged positions. |
• | For details on items impacting comparability in the quarter, refer to 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. |
• | 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. |
• | "Comparable currency neutral income before taxes" is a non-GAAP financial measure that excludes or otherwise adjusts for items impacting comparability and the impact of changes in foreign currency exchange rates. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | "Comparable currency neutral income before taxes (structurally adjusted)" is a non-GAAP financial measure that excludes or otherwise adjusts for items impacting comparability, the impact of changes in foreign currency exchange rates and the impact of structural items. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | "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. |
• | "Concentrate sales/reported volume" represents the percent change in net revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating segments (expressed in equivalent unit cases) after considering the impact of structural changes. For our Bottling Investments operating segment, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume after considering the impact of structural changes. Our Bottling Investments operating segment reflects unit case volume growth for consolidated bottlers only, which is computed on a reported basis. |
• | "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, divestitures and structural items, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule. |
• | "Sparkling beverages" means NARTD beverages with carbonation, including carbonated energy drinks and waters. |
• | "Still beverages" means nonalcoholic beverages without carbonation, including non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas, coffees, sports drinks, dairy 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 2016 financial results were impacted by one less day, while fourth quarter financial results will be impacted by two additional 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 COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Three Months Ended | ||||||||||
April 1, 2016 | April 3, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 10,282 | $ | 10,711 | (4 | ) | ||||
Cost of goods sold | 4,069 | 4,103 | (1 | ) | ||||||
Gross Profit | 6,213 | 6,608 | (6 | ) | ||||||
Selling, general and administrative expenses | 3,761 | 4,079 | (8 | ) | ||||||
Other operating charges | 311 | 233 | 33 | |||||||
Operating Income | 2,141 | 2,296 | (7 | ) | ||||||
Interest income | 144 | 155 | (7 | ) | ||||||
Interest expense | 141 | 447 | (68 | ) | ||||||
Equity income (loss) — net | 92 | 2 | — | |||||||
Other income (loss) — net | (342 | ) | (25 | ) | — | |||||
Income Before Income Taxes | 1,894 | 1,981 | (4 | ) | ||||||
Income taxes | 401 | 415 | (3 | ) | ||||||
Consolidated Net Income | 1,493 | 1,566 | (5 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 10 | 9 | 3 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,483 | $ | 1,557 | (5 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.34 | $ | 0.35 | (4 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,382 | 4,422 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended April 1, 2016 and April 3, 2015, basic net income per share was $0.34 for 2016 and $0.36 for 2015 based on average shares outstanding — basic of 4,328 million for 2016 and 4,365 million for 2015. 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 1, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 8,748 | $ | 7,309 | |||
Short-term investments | 10,003 | 8,322 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 18,751 | 15,631 | |||||
Marketable securities | 3,460 | 4,269 | |||||
Trade accounts receivable, less allowances of $292 and $352, respectively | 4,147 | 3,941 | |||||
Inventories | 3,052 | 2,902 | |||||
Prepaid expenses and other assets | 3,314 | 2,752 | |||||
Assets held for sale | 3,786 | 3,900 | |||||
Total Current Assets | 36,510 | 33,395 | |||||
Equity Method Investments | 12,610 | 12,318 | |||||
Other Investments | 1,186 | 3,470 | |||||
Other Assets | 4,314 | 4,110 | |||||
Property, Plant and Equipment — net | 12,613 | 12,571 | |||||
Trademarks With Indefinite Lives | 6,014 | 5,989 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 5,714 | 6,000 | |||||
Goodwill | 11,396 | 11,289 | |||||
Other Intangible Assets | 906 | 854 | |||||
Total Assets | $ | 91,263 | $ | 89,996 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,626 | $ | 9,660 | |||
Loans and notes payable | 14,888 | 13,129 | |||||
Current maturities of long-term debt | 4,956 | 2,676 | |||||
Accrued income taxes | 275 | 331 | |||||
Liabilities held for sale | 1,242 | 1,133 | |||||
Total Current Liabilities | 30,987 | 26,929 | |||||
Long-Term Debt | 26,990 | 28,311 | |||||
Other Liabilities | 3,820 | 4,301 | |||||
Deferred Income Taxes | 4,337 | 4,691 | |||||
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 | 14,507 | 14,016 | |||||
Reinvested earnings | 64,985 | 65,018 | |||||
Accumulated other comprehensive income (loss) | (10,789 | ) | (10,174 | ) | |||
Treasury stock, at cost — 2,708 and 2,716 shares, respectively | (45,549 | ) | (45,066 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 24,914 | 25,554 | |||||
Equity Attributable to Noncontrolling Interests | 215 | 210 | |||||
Total Equity | 25,129 | 25,764 | |||||
Total Liabilities and Equity | $ | 91,263 | $ | 89,996 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Three Months Ended | |||||||
April 1, 2016 | April 3, 2015 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 1,493 | $ | 1,566 | |||
Depreciation and amortization | 458 | 473 | |||||
Stock-based compensation expense | 69 | 60 | |||||
Deferred income taxes | (81 | ) | 8 | ||||
Equity (income) loss — net of dividends | (79 | ) | 8 | ||||
Foreign currency adjustments | 93 | (46 | ) | ||||
Significant (gains) losses on sales of assets — net | 362 | 33 | |||||
Other operating charges | 142 | 139 | |||||
Other items | (173 | ) | 522 | ||||
Net change in operating assets and liabilities | (1,680 | ) | (1,189 | ) | |||
Net cash provided by operating activities | 604 | 1,574 | |||||
Investing Activities | |||||||
Purchases of investments | (4,763 | ) | (4,003 | ) | |||
Proceeds from disposals of investments | 6,010 | 3,746 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (688 | ) | (603 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 291 | 229 | |||||
Purchases of property, plant and equipment | (536 | ) | (516 | ) | |||
Proceeds from disposals of property, plant and equipment | 29 | 21 | |||||
Other investing activities | 5 | 314 | |||||
Net cash provided by (used in) investing activities | 348 | (812 | ) | ||||
Financing Activities | |||||||
Issuances of debt | 8,530 | 16,373 | |||||
Payments of debt | (6,783 | ) | (15,755 | ) | |||
Issuances of stock | 763 | 279 | |||||
Purchases of stock for treasury | (739 | ) | (654 | ) | |||
Dividends | (1,505 | ) | (1,441 | ) | |||
Other financing activities | 133 | 21 | |||||
Net cash provided by (used in) financing activities | 399 | (1,177 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 88 | (332 | ) | ||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 1,439 | (747 | ) | ||||
Balance at beginning of period | 7,309 | 8,958 | |||||
Balance at end of period | $ | 8,748 | $ | 8,211 |
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 1, 2016 | April 3, 2015 | % Fav. / (Unfav.) | April 1, 2016 | April 3, 2015 | % Fav. / (Unfav.) | April 1, 2016 | April 3, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 546 | $ | 638 | (14 | ) | $ | 236 | $ | 279 | (16 | ) | $ | 246 | $ | 286 | (14 | ) | |||||||||||||||
Europe | 1,204 | 1,212 | (1 | ) | 691 | 716 | (3 | ) | 704 | 724 | (3 | ) | |||||||||||||||||||||
Latin America | 935 | 1,066 | (12 | ) | 523 | 578 | (10 | ) | 518 | 588 | (12 | ) | |||||||||||||||||||||
North America | 2,364 | 2,317 | 2 | 581 | 535 | 9 | 580 | 532 | 9 | ||||||||||||||||||||||||
Asia Pacific | 1,235 | 1,285 | (4 | ) | 551 | 544 | 1 | 554 | 548 | 1 | |||||||||||||||||||||||
Bottling Investments | 5,292 | 5,531 | (4 | ) | (118 | ) | (10 | ) | — | (432 | ) | (46 | ) | (841 | ) | ||||||||||||||||||
Corporate | (15 | ) | 40 | — | (323 | ) | (346 | ) | 7 | (276 | ) | (651 | ) | 57 | |||||||||||||||||||
Eliminations | (1,279 | ) | (1,378 | ) | 7 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 10,282 | $ | 10,711 | (4 | ) | $ | 2,141 | $ | 2,296 | (7 | ) | $ | 1,894 | $ | 1,981 | (4 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the three months ended April 1, 2016, intersegment revenues were for $6 million for Eurasia and Africa, $135 million for Europe, $18 million for Latin America, $943 million for North America, $133 million for Asia Pacific, $41 million for Bottling Investments and $3 million for Corporate. During the three months ended April 3, 2015, intersegment revenues were $144 million for Europe, $19 million for Latin America, $1,041 million for North America, $129 million for Asia Pacific and $45 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 1, 2016 | ||||||||||||||||||||||||||||||||
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) | $ | 10,282 | $ | 4,069 | $ | 6,213 | 60.4 | % | $ | 3,761 | $ | 311 | $ | 2,141 | 20.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (199 | ) | 199 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (63 | ) | 63 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (46 | ) | 46 | |||||||||||||||||||||||||
Other Items | 47 | 48 | (1 | ) | 4 | (3 | ) | (2 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 10,329 | $ | 4,117 | $ | 6,212 | 60.1 | % | $ | 3,765 | $ | — | $ | 2,447 | 23.7 | % | ||||||||||||||||
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 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (4) | (1) | (6) | (8) | 33 | (7) | ||||||||||||||||||||||||||
% Currency Impact | (5) | (3) | (7) | (4) | — | (12) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | 1 | 2 | 1 | (4) | — | 6 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (3) | 0 | (6) | (8) | — | (2) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (5) | (3) | (6) | (4) | — | (10) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 1 | 3 | 0 | (4) | — | 7 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended April 1, 2016 | |||||||||||||||||||||||||||||||||||||
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) | $ | 141 | $ | 92 | $ | (342 | ) | $ | 1,894 | $ | 401 | 21.2 | % | $ | 10 | $ | 1,483 | $ | 0.34 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 199 | — | — | 199 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 63 | 21 | — | 42 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 3 | — | 3 | — | — | 3 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 351 | 397 | 143 | — | 254 | 0.06 | |||||||||||||||||||||||||||||
Other Items | — | — | 29 | 27 | 10 | — | 17 | — | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 6 | — | (6 | ) | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 141 | $ | 95 | $ | 38 | $ | 2,583 | $ | 581 | 22.5 | % | $ | 10 | $ | 1,992 | $ | 0.45 | |||||||||||||||||||
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 share2 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||
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) | (68) | — | — | (4) | (3) | 3 | (5) | (4) | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 11 | 29 | (67) | (5) | (5) | 2 | (5) | (4) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | 4,382 million average shares outstanding — diluted |
2 | 4,422 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 1, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (4) | (4) | |||
% Currency Impact | (18) | (19) | |||
% Change — Currency Neutral Reported | 14 | 15 | |||
% Structural Impact | (2) | — | |||
% Change — Currency Neutral Reported and Adjusted for Structural Impact | 17 | — | |||
% Change — After Considering Items (Non-GAAP) | (5) | (4) | |||
% Currency Impact After Considering Items (Non-GAAP) | (12) | (12) | |||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 8 | |||
% Structural Impact After Considering Items (Non-GAAP) | (1) | — | |||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP) | 9 | — | |||
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 1, 2016 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 546 | $ | 1,204 | $ | 935 | $ | 2,364 | $ | 1,235 | $ | 5,292 | $ | (15 | ) | $ | (1,279 | ) | $ | 10,282 | |||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (2 | ) | — | — | 49 | — | 47 | |||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 546 | $ | 1,204 | $ | 935 | $ | 2,362 | $ | 1,235 | $ | 5,292 | $ | 34 | $ | (1,279 | ) | $ | 10,329 | ||||||||||
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 | $ | 2,317 | $ | 1,285 | $ | 5,531 | $ | 40 | $ | (1,378 | ) | $ | 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 | $ | 2,311 | $ | 1,285 | $ | 5,531 | $ | 38 | $ | (1,378 | ) | $ | 10,703 | ||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | (14) | (1) | (12) | 2 | (4) | (4) | — | 7 | (4) | ||||||||||||||||||||
% Currency Impact | (14) | 0 | (24) | 0 | (2) | (3) | — | — | (5) | ||||||||||||||||||||
% Change — Currency Neutral Reported | (1) | (1) | 11 | 2 | (2) | (1) | — | — | 1 | ||||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (2) | (2) | 0 | 0 | (3) | (1) | — | — | (1) | ||||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 2 | 0 | 12 | 2 | 2 | 0 | — | — | 2 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (14) | (1) | (12) | 2 | (4) | (4) | (4) | — | (3) | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (14) | 0 | (24) | 0 | (2) | (3) | (2) | — | (5) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (1) | 11 | 2 | (2) | (1) | (2) | — | 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) | |||||
Core Net Operating Revenues: 1 | |||||
Three Months Ended April 1, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 10,282 | |||
Bottling Investments Net Operating Revenues | (5,292 | ) | |||
Consolidated Eliminations | 1,279 | ||||
Intersegment Core Net Operating Revenue Eliminations | (6 | ) | |||
Core Net Operating Revenues | $ | 6,263 | |||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | 47 | ||||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 6,310 | |||
Three Months Ended April 3, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 10,711 | |||
Bottling Investments Net Operating Revenues | (5,531 | ) | |||
Consolidated Eliminations | 1,378 | ||||
Intersegment Core Net Operating Revenue Eliminations | (3 | ) | |||
Core Net Operating Revenues | $ | 6,555 | |||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (8 | ) | |||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 6,547 | |||
% Change — Reported (GAAP) Net Operating Revenues | (4) | ||||
% Change — Core Net Operating Revenues | (4) | ||||
% Currency Impact | (6) | ||||
% Change — Core Currency Neutral Reported | 2 | ||||
% Acquisitions, Divestitures and Structural Items | (1) | ||||
% Change — Core Organic Revenues (Non-GAAP)2 | 3 | ||||
% Change — Core After Considering Items (Non-GAAP) | (4) | ||||
% Currency Impact After Considering Items (Non-GAAP) | (6) | ||||
% Change — Core Currency Neutral After Considering Items (Non-GAAP) | 2 |
1 | Core net operating revenues include the net operating revenues from the Eurasia and Africa, Europe, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $6 million and $3 million during the three months ended April 1, 2016 and April 3, 2015, respectively. |
2 | Core organic revenue growth was driven by concentrate sales growth of 1% along with 2 points of positive price/mix. |
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 April 1, 2016 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 236 | $ | 691 | $ | 523 | $ | 581 | $ | 551 | $ | (118 | ) | $ | (323 | ) | $ | 2,141 | ||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 199 | — | 199 | ||||||||||||||||||
Productivity & Reinvestment | (1 | ) | 4 | — | 31 | 1 | 21 | 7 | 63 | |||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 45 | 1 | 46 | ||||||||||||||||||
Other Items | — | — | — | (16 | ) | — | (42 | ) | 56 | (2 | ) | |||||||||||||||
After Considering Items (Non-GAAP) | $ | 235 | $ | 695 | $ | 523 | $ | 596 | $ | 552 | $ | 105 | $ | (259 | ) | $ | 2,447 | |||||||||
Three Months Ended April 3, 2015 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 279 | $ | 716 | $ | 578 | $ | 535 | $ | 544 | $ | (10 | ) | $ | (346 | ) | $ | 2,296 | ||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 35 | — | 35 | ||||||||||||||||||
Productivity & Reinvestment | 12 | (11 | ) | — | 42 | (5 | ) | 32 | 20 | 90 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | 33 | (10 | ) | 2 | (11 | ) | 73 | 87 | ||||||||||||||||
After Considering Items (Non-GAAP) | $ | 291 | $ | 705 | $ | 611 | $ | 567 | $ | 541 | $ | 46 | $ | (253 | ) | $ | 2,508 | |||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (16) | (3) | (10) | 9 | 1 | — | 7 | (7) | ||||||||||||||||||
% Currency Impact | (16) | 0 | (31) | 2 | (4) | 64 | (16) | (12) | ||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (4) | 21 | 7 | 5 | — | 23 | 6 | ||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (19) | (1) | (15) | 5 | 2 | 128 | (2) | (2) | ||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (15) | 0 | (29) | 1 | (4) | (7) | (2) | (10) | ||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (4) | (1) | 15 | 4 | 6 | 134 | 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 1, 2016 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 246 | $ | 704 | $ | 518 | $ | 580 | $ | 554 | $ | (432 | ) | $ | (276 | ) | $ | 1,894 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 199 | — | 199 | |||||||||||||||||||||||||
Productivity & Reinvestment | (1 | ) | 4 | — | 31 | 1 | 21 | 7 | 63 | ||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 414 | (17 | ) | 397 | ||||||||||||||||||||||||
Other Items | — | — | — | (16 | ) | — | (42 | ) | 85 | 27 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 245 | $ | 708 | $ | 518 | $ | 595 | $ | 555 | $ | 163 | $ | (201 | ) | $ | 2,583 | ||||||||||||||||
Three Months Ended April 3, 2015 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 286 | $ | 724 | $ | 588 | $ | 532 | $ | 548 | $ | (46 | ) | $ | (651 | ) | $ | 1,981 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 35 | — | 35 | |||||||||||||||||||||||||
Productivity & Reinvestment | 12 | (11 | ) | — | 42 | (5 | ) | 32 | 20 | 90 | |||||||||||||||||||||||
Equity Investees | — | 1 | — | — | — | 72 | — | 73 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 21 | 25 | 46 | |||||||||||||||||||||||||
Other Items | — | — | 33 | (10 | ) | 2 | (11 | ) | 487 | 501 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 298 | $ | 714 | $ | 621 | $ | 564 | $ | 545 | $ | 103 | $ | (119 | ) | $ | 2,726 | ||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (14) | (3) | (12) | 9 | 1 | (841) | 57 | (4) | |||||||||||||||||||||||||
% Currency Impact | (16) | 0 | (30) | 2 | (4) | (9) | (19) | (18) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 2 | (3) | 18 | 8 | 5 | (833) | 77 | 14 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (18) | (1) | (17) | 6 | 2 | 59 | (71) | (5) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (15) | 0 | (28) | 1 | (4) | (13) | (71) | (12) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (3) | (1) | 12 | 4 | 5 | 72 | 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) | |||||||
Operating Expense Leverage: | |||||||
Three Months Ended April 1, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (7) | (6) | (1) | ||||
% Change — Currency Neutral Reported | 6 | 1 | 5 | ||||
% Change — After Considering Items (Non-GAAP) | (2) | (6) | 3 | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 7 | 0 | 7 |
Note: | Certain rows may not add due to rounding. |
Operating Margin: | ||||||
Three Months Ended April 1, 2016 | Three Months Ended April 3, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 20.82 | % | 21.44 | % | (62 | ) |
Impact on Operating Margin of Items Impacting Comparability (Non-GAAP) | (2.87 | )% | (2.00 | )% | ||
Operating Margin After Considering Items (Non-GAAP) | 23.69 | % | 23.44 | % | 25 | |
Impact on Operating Margin of Currency After Considering Items (Non-GAAP) | (1.15 | )% | 0.00 | % | ||
Currency Neutral Operating Margin After Considering Items (Non-GAAP) | 24.84 | % | 23.44 | % | 140 |
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 1, 2016 | Three Months Ended April 3, 2015 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 763 | $ | 279 | ||||||
Purchases of Stock for Treasury | (739 | ) | (654 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 40 | (1 | ) | |||||||
Net Change in Treasury Stock Payables2 | (219 | ) | (10 | ) | ||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (155 | ) | $ | (386 | ) |
1 | Represents the net change in receivables related to employee stock options exercised but not settled prior to the end of the period. |
2 | Represents the net change in payables for treasury shares repurchased but not settled prior to the end of the period. |
Consolidated Cash from Operations: | ||||||||||
Three Months Ended April 1, 2016 | Three Months Ended April 3, 2015 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP) | $ | 604 | $ | 1,574 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments for Pension Plan Contributions | 471 | — | ||||||||
After Considering Items (Non-GAAP) | $ | 1,075 | $ | 1,574 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | (62) | |||||||||
% Change — After Considering Items (Non-GAAP) | (32) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |