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 declined 5% and organic revenues grew 3% in the quarter. |
• | Reported EPS was $0.79 and comparable EPS was $0.60 in the quarter. |
• | Global volume grew 1% year to date and was even in the quarter. |
• | Global price/mix grew 3% in the quarter, reflecting continued effective pricing and packaging initiatives across key markets. |
• | Reported operating margin expanded more than 390 basis points and comparable currency neutral operating margin expanded more than 140 basis points. |
• | Gained global value share in nonalcoholic ready-to-drink beverages. |
• | Full-year 2016 organic revenues now expected to grow 3%. Full-year comparable currency neutral income before taxes (structurally adjusted) outlook remains 6% to 8%. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | 0 | 1 | |
Concentrate Sales/Reported Volume | 0 | 0 | |
Price/Mix | 3 | 2 | |
Currency | (3) | (4) | |
Acquisitions, Divestitures and Structural Items, Net | (5) | (3) | |
Reported Net Revenues | (5) | (5) | |
Organic Revenues * | 3 | 2 | |
Reported Income Before Taxes | (1) | (2) | |
Comparable CN Income Before Taxes (Structurally Adjusted) * | 10 | 10 |
* | Organic revenues 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. |
• | Concentrate sales growth was in line with unit case volume growth in the quarter and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The positive price/mix in the quarter was driven by solid underlying pricing partially offset by 1 point of geographic mix. Acquisitions, divestitures and structural items in the quarter primarily include the impact of refranchised territories in North America, the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners as well as the impact of the brand transfer agreement associated with the closing of the transaction with Monster Beverage Corporation (“Monster”) in 2015. |
• | We gained global volume and value share in sparkling beverages in the quarter. Value share grew ahead of volume share, emphasizing our focus on accelerating our revenue growth management strategies. Sparkling beverage volume was even year to date and declined 1% in the quarter primarily due to weakness in certain emerging markets. |
• | We gained global volume and value share in still beverages in the quarter. Still beverage volume grew 4% year to date and 2% in the quarter. Volume growth in the quarter was driven by strong performance in most categories partially offset by a decline in juice and juice drinks primarily due to industry weakness in China. |
• | The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 9% and structural impacts, partially offset by a 5% favorable |
• | The reported effective tax rate for the quarter was 19.5%. 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 $0.79 and comparable EPS was $0.60 in the quarter. Items impacting comparability increased reported EPS by a net $0.19 and were primarily related to a noncash gain recognized in connection with the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners, partially offset by noncash charges related to refranchising territories in North America and costs associated with our previously announced productivity and restructuring initiatives. |
• | Fluctuations in foreign currency exchange rates resulted in a headwind of 7 points, 9 points and 10 points on reported operating income, reported income before taxes and reported EPS, respectively, in the quarter. Fluctuations in foreign currency exchange rates resulted in a 6 point headwind on comparable operating income and an 11 point headwind on both comparable income before taxes and comparable EPS in the quarter. |
• | Year-to-date cash from operations was $3.8 billion, down $1.3 billion due to the impact of contributions to our pension plans, fluctuations in foreign currency exchange rates, one less day in the first quarter and the deconsolidation of our German bottling operations. |
• | Year-to-date purchases of stock for treasury were $2.2 billion. Net share repurchases totaled $1.1 billion. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | (1) | (1) | |
Concentrate Sales | 0 | (1) | |
Price/Mix | 7 | 5 | |
Currency | (10) | (11) | |
Acquisitions, Divestitures and Structural Items, Net | (3) | (3) | |
Reported Net Revenues | (6) | (10) | |
Organic Revenues * | 7 | 5 | |
Reported Income Before Taxes | (11) | (12) | |
Comparable CN Income Before Taxes * | 0 | (1) |
* | Organic revenues 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. |
• | Concentrate sales growth was slightly ahead of unit case volume growth in the quarter due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line. The positive price/mix in the quarter was primarily attributable to favorable pricing and product mix across several key markets, partially offset by unfavorable geographic mix. Acquisitions, divestitures and structural items in the quarter primarily reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015. |
• | The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 11% and the unfavorable structural impact of the brand transfer agreement with Monster. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives and timing of expenses. |
• | We gained value share in sparkling beverages in the quarter. Sparkling beverage volume was even and still beverage volume declined 4% in the quarter. Unit case volume performance in the quarter included low single-digit growth in both our Central, East & West Africa and Middle East & North Africa business units, offset by a high single-digit decline in our Russia, Ukraine & Belarus business unit and a mid single-digit decline in our Turkey, Caucasus & Central Asia business unit. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | 0 | 0 | |
Concentrate Sales | (1) | (1) | |
Price/Mix | 3 | 2 | |
Currency | 0 | 1 | |
Acquisitions, Divestitures and Structural Items, Net | (4) | (3) | |
Reported Net Revenues | (2) | (1) | |
Organic Revenues * | 2 | 1 | |
Reported Income Before Taxes | (3) | (3) | |
Comparable CN Income Before Taxes * | (3) | (2) |
* | Organic revenues 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. |
• | Concentrate sales growth in the quarter was slightly behind unit case volume growth due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line after adjusting for one less day in the first quarter. The positive price/mix in the quarter reflects an increase in pricing and favorable product mix in key markets. Acquisitions, divestitures and structural items in the quarter reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015 as well as the impact of the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners. |
• | The decline in reported income before taxes in the quarter was primarily driven by the unfavorable structural impact related to the brand transfer agreement with Monster and the impact of the deconsolidation of our German bottling operations. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives. |
• | We gained value share in total nonalcoholic ready-to-drink (“NARTD”) beverages in the quarter. Sparkling beverage volume was even and still beverage volume grew 2% in the quarter. Unit case volume growth in key markets including Germany, Poland and Romania was offset by volume declines in France and Spain primarily driven by poor weather. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | 0 | 1 | |
Concentrate Sales | 1 | 1 | |
Price/Mix | 15 | 13 | |
Currency | (20) | (22) | |
Acquisitions, Divestitures and Structural Items, Net | 0 | 0 | |
Reported Net Revenues | (4) | (8) | |
Organic Revenues * | 16 | 14 | |
Reported Income Before Taxes | (1) | (7) | |
Comparable CN Income Before Taxes * | 27 | 19 |
* | Organic revenues 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. |
• | Concentrate sales growth was slightly ahead of unit case volume growth in the quarter due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line. Positive price/mix was realized in each of our four business units in the quarter, particularly in Brazil and other higher inflationary markets within our South Latin and Latin Center business units. |
• | The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 29%. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives and timing of expenses. |
• | We gained value share in still beverages in the quarter. Sparkling beverage volume declined 2% in the quarter and still beverage volume grew 6%. Unit case volume performance in the quarter was driven by high single-digit growth in Mexico, offset by a high single-digit decline in both our Latin Center and South Latin business units and a low single-digit decline in Brazil. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | 1 | 1 | |
Concentrate Sales | 1 | 0 | |
Price/Mix | 2 | 3 | |
Currency | 0 | 0 | |
Acquisitions, Divestitures and Structural Items, Net | (1) | (1) | |
Reported Net Revenues | 2 | 2 | |
Organic Revenues * | 4 | 3 | |
Reported Income Before Taxes | (1) | 3 | |
Comparable CN Income Before Taxes * | 0 | 2 |
* | Organic revenues 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. |
• | Concentrate sales growth was in line with unit case volume growth in the quarter and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The positive price/mix in the quarter reflects the successful continued implementation of our rational pricing strategy and our effective revenue management efforts. Acquisitions, divestitures and structural items in the quarter primarily reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015. |
• | Reported income before taxes in the quarter includes an unfavorable structural impact of 4% primarily related to 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 25th 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 declined 1% in the quarter. Growth in Sprite, Fanta and energy drinks was offset by a decline in Trademark Coca-Cola. Still beverage volume growth of 3% in the quarter was driven by all key categories. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | 1 | 3 | |
Concentrate Sales | (2) | 2 | |
Price/Mix | 0 | (2) | |
Currency | 1 | (1) | |
Acquisitions, Divestitures and Structural Items, Net | (1) | (2) | |
Reported Net Revenues | (2) | (3) | |
Organic Revenues * | (2) | 0 | |
Reported Income Before Taxes | (1) | 0 | |
Comparable CN Income Before Taxes * | 0 | 2 |
* | Organic revenues 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. |
• | Concentrate sales growth trailed unit case volume growth in the quarter due to timing of concentrate shipments and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The even price/mix in the quarter was primarily driven by favorable pricing and geographic mix, offset by negative product mix. Acquisitions, divestitures and structural items in the quarter reflect the unfavorable impact of 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. |
• | The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 1 point. Also, income before taxes benefited in the quarter 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 was even and still beverage volume grew 2% in the quarter. Unit case volume growth in the quarter included high single-digit growth in our ASEAN business unit, 4% growth in Japan and 3% growth in India, partially offset by a high single-digit decline in China. |
Percent Change | |||
Second Quarter | YTD | ||
Unit Case Volume | (13) | (9) | |
Reported Volume | (2) | (1) | |
Price/Mix | 2 | 1 | |
Currency | (1) | (2) | |
Acquisitions, Divestitures and Structural Items, Net | (11) | (6) | |
Reported Net Revenues | (12) | (8) | |
Organic Revenues * | 0 | 0 | |
Reported Income Before Taxes | (24) | — | |
Comparable CN Income Before Taxes * | 11 | 21 |
* | Organic revenues 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. |
• | The positive price/mix in the quarter reflects favorable pricing across several of our bottling operations and positive geographic mix given our China bottling operations’ weaker volume performance. Acquisitions, divestitures and structural items in the quarter reflect the impact of the refranchised North America bottling territories and the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners. |
• | The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 6%, an unfavorable impact due to comparability items and an unfavorable structural impact related to refranchised North America bottling territories and the deconsolidation of our German bottling operations. Also, income before taxes benefited from the impact of our productivity initiatives, a slightly favorable commodity pricing environment and increased equity income. |
• | The Company now expects organic revenues to be up 3% in 2016. The net impact of acquisitions, divestitures and structural items on net revenues is expected to be a 6 to 7 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 continues to expect comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016, in line with our long-term target. The net impact of structural items is expected to be a 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. |
• | Based on the above, the Company expects full-year comparable EPS to be down 4% to 7% versus prior year’s comparable EPS of $2.00. |
• | 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 third quarter of 2016, we estimate that based on the current spot rates, currency will be a 2 point headwind on comparable net revenues and a 2 to 3 point headwind on comparable income before taxes, including the impact of hedged positions. The net impact of structural items is expected to be a 3 point headwind on comparable income before taxes. |
• | 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 uses non-GAAP financial measures, including, but not limited to, organic revenues, comparable currency neutral income before taxes and comparable currency neutral earnings per share, in making financial, operating, compensation and planning decisions and in evaluating the Company's performance. Management believes that these non-GAAP financial measures provide users |
• | "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 revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted 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. |
• | "Core business" represents the combined performance from the Eurasia and Africa, Europe, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment eliminations. |
• | "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, 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 | ||||||||||
July 1, 2016 | July 3, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 11,539 | $ | 12,156 | (5 | ) | ||||
Cost of goods sold | 4,471 | 4,748 | (6 | ) | ||||||
Gross Profit | 7,068 | 7,408 | (5 | ) | ||||||
Selling, general and administrative expenses | 3,912 | 4,204 | (7 | ) | ||||||
Other operating charges | 297 | 669 | (56 | ) | ||||||
Operating Income | 2,859 | 2,535 | 13 | |||||||
Interest income | 164 | 149 | 10 | |||||||
Interest expense | 162 | 128 | 27 | |||||||
Equity income (loss) — net | 305 | 200 | 52 | |||||||
Other income (loss) — net | 1,133 | 1,605 | (29 | ) | ||||||
Income Before Income Taxes | 4,299 | 4,361 | (1 | ) | ||||||
Income taxes | 839 | 1,250 | (33 | ) | ||||||
Consolidated Net Income | 3,460 | 3,111 | 11 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 12 | 3 | 445 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 3,448 | $ | 3,108 | 11 | |||||
Diluted Net Income Per Share2 | $ | 0.79 | $ | 0.71 | 12 | |||||
Average Shares Outstanding — Diluted2 | 4,377 | 4,408 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended July 1, 2016 and July 3, 2015, basic net income per share was $0.80 for 2016 and $0.71 for 2015 based on average shares outstanding — basic of 4,323 million for 2016 and 4,355 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 Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Six Months Ended | ||||||||||
July 1, 2016 | July 3, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 21,821 | $ | 22,867 | (5 | ) | ||||
Cost of goods sold | 8,540 | 8,851 | (4 | ) | ||||||
Gross Profit | 13,281 | 14,016 | (5 | ) | ||||||
Selling, general and administrative expenses | 7,673 | 8,283 | (7 | ) | ||||||
Other operating charges | 608 | 902 | (33 | ) | ||||||
Operating Income | 5,000 | 4,831 | 4 | |||||||
Interest income | 308 | 304 | 1 | |||||||
Interest expense | 303 | 575 | (47 | ) | ||||||
Equity income (loss) — net | 397 | 202 | 97 | |||||||
Other income (loss) — net | 791 | 1,580 | (50 | ) | ||||||
Income Before Income Taxes | 6,193 | 6,342 | (2 | ) | ||||||
Income taxes | 1,240 | 1,665 | (25 | ) | ||||||
Consolidated Net Income | 4,953 | 4,677 | 6 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | 22 | 12 | 82 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 4,931 | $ | 4,665 | 6 | |||||
Diluted Net Income Per Share2 | $ | 1.13 | $ | 1.06 | 7 | |||||
Average Shares Outstanding — Diluted2 | 4,379 | 4,415 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the six months ended July 1, 2016 and July 3, 2015, basic net income per share was $1.14 for 2016 and $1.07 for 2015 based on average shares outstanding — basic of 4,325 million for 2016 and 4,360 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) | |||||||
July 1, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 9,647 | $ | 7,309 | |||
Short-term investments | 11,755 | 8,322 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 21,402 | 15,631 | |||||
Marketable securities | 2,673 | 4,269 | |||||
Trade accounts receivable, less allowances of $354 and $352, respectively | 4,768 | 3,941 | |||||
Inventories | 3,005 | 2,902 | |||||
Prepaid expenses and other assets | 3,332 | 2,752 | |||||
Assets held for sale | 693 | 3,900 | |||||
Total Current Assets | 35,873 | 33,395 | |||||
Equity Method Investments | 16,215 | 12,318 | |||||
Other Investments | 1,284 | 3,470 | |||||
Other Assets | 4,370 | 4,110 | |||||
Property, Plant and Equipment — net | 12,663 | 12,571 | |||||
Trademarks With Indefinite Lives | 6,038 | 5,989 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 5,616 | 6,000 | |||||
Goodwill | 11,204 | 11,289 | |||||
Other Intangible Assets | 831 | 854 | |||||
Total Assets | $ | 94,094 | $ | 89,996 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,235 | $ | 9,660 | |||
Loans and notes payable | 13,901 | 13,129 | |||||
Current maturities of long-term debt | 4,895 | 2,676 | |||||
Accrued income taxes | 375 | 331 | |||||
Liabilities held for sale | 138 | 1,133 | |||||
Total Current Liabilities | 29,544 | 26,929 | |||||
Long-Term Debt | 29,252 | 28,311 | |||||
Other Liabilities | 3,963 | 4,301 | |||||
Deferred Income Taxes | 4,497 | 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 | 14,710 | 14,016 | |||||
Reinvested earnings | 66,921 | 65,018 | |||||
Accumulated other comprehensive income (loss) | (10,153 | ) | (10,174 | ) | |||
Treasury stock, at cost — 2,725 and 2,716 shares, respectively | (46,601 | ) | (45,066 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 26,637 | 25,554 | |||||
Equity Attributable to Noncontrolling Interests | 201 | 210 | |||||
Total Equity | 26,838 | 25,764 | |||||
Total Liabilities and Equity | $ | 94,094 | $ | 89,996 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Six Months Ended | |||||||
July 1, 2016 | July 3, 2015 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 4,953 | $ | 4,677 | |||
Depreciation and amortization | 903 | 961 | |||||
Stock-based compensation expense | 119 | 117 | |||||
Deferred income taxes | (178 | ) | 643 | ||||
Equity (income) loss — net of dividends | (224 | ) | (44 | ) | |||
Foreign currency adjustments | 118 | (144 | ) | ||||
Significant (gains) losses on sales of assets — net | (762 | ) | (1,346 | ) | |||
Other operating charges | 210 | 609 | |||||
Other items | (125 | ) | 609 | ||||
Net change in operating assets and liabilities | (1,194 | ) | (964 | ) | |||
Net cash provided by operating activities | 3,820 | 5,118 | |||||
Investing Activities | |||||||
Purchases of investments | (9,045 | ) | (6,981 | ) | |||
Proceeds from disposals of investments | 9,518 | 6,316 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (723 | ) | (2,284 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 420 | 413 | |||||
Purchases of property, plant and equipment | (1,085 | ) | (1,114 | ) | |||
Proceeds from disposals of property, plant and equipment | 41 | 33 | |||||
Other investing activities | (63 | ) | (139 | ) | |||
Net cash provided by (used in) investing activities | (937 | ) | (3,756 | ) | |||
Financing Activities | |||||||
Issuances of debt | 15,947 | 24,878 | |||||
Payments of debt | (12,750 | ) | (22,358 | ) | |||
Issuances of stock | 1,108 | 410 | |||||
Purchases of stock for treasury | (2,156 | ) | (1,298 | ) | |||
Dividends | (3,017 | ) | (2,877 | ) | |||
Other financing activities | 85 | 115 | |||||
Net cash provided by (used in) financing activities | (783 | ) | (1,130 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 238 | (385 | ) | ||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 2,338 | (153 | ) | ||||
Balance at beginning of period | 7,309 | 8,958 | |||||
Balance at end of period | $ | 9,647 | $ | 8,805 |
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 | |||||||||||||||||||||||||||||||
July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 621 | $ | 658 | (6 | ) | $ | 248 | $ | 275 | (10 | ) | $ | 256 | $ | 287 | (11 | ) | |||||||||||||||
Europe | 1,410 | 1,435 | (2 | ) | 808 | 836 | (3 | ) | 822 | 843 | (3 | ) | |||||||||||||||||||||
Latin America | 937 | 973 | (4 | ) | 512 | 525 | (2 | ) | 520 | 526 | (1 | ) | |||||||||||||||||||||
North America | 2,709 | 2,651 | 2 | 735 | 754 | (3 | ) | 745 | 752 | (1 | ) | ||||||||||||||||||||||
Asia Pacific | 1,560 | 1,601 | (2 | ) | 758 | 761 | 0 | 760 | 766 | (1 | ) | ||||||||||||||||||||||
Bottling Investments | 5,615 | 6,385 | (12 | ) | 216 | 164 | 31 | 269 | 353 | (24 | ) | ||||||||||||||||||||||
Corporate | 63 | 25 | 149 | (418 | ) | (780 | ) | 47 | 927 | 834 | 11 | ||||||||||||||||||||||
Eliminations | (1,376 | ) | (1,572 | ) | 13 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 11,539 | $ | 12,156 | (5 | ) | $ | 2,859 | $ | 2,535 | 13 | $ | 4,299 | $ | 4,361 | (1 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the three months ended July 1, 2016, intersegment revenues were $11 million for Eurasia and Africa, $112 million for Europe, $16 million for Latin America, $1,032 million for North America, $159 million for Asia Pacific, $44 million for Bottling Investments and $2 million for Corporate. During the three months ended July 3, 2015, intersegment revenues were $7 million for Eurasia and Africa, $151 million for Europe, $18 million for Latin America, $1,158 million for North America, $188 million for Asia Pacific and $50 million for Bottling Investments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues 1 | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | July 1, 2016 | July 3, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Eurasia & Africa | $ | 1,167 | $ | 1,296 | (10 | ) | $ | 484 | $ | 554 | (13 | ) | $ | 502 | $ | 573 | (12 | ) | |||||||||||||||
Europe | 2,614 | 2,647 | (1 | ) | 1,499 | 1,552 | (3 | ) | 1,526 | 1,567 | (3 | ) | |||||||||||||||||||||
Latin America | 1,872 | 2,039 | (8 | ) | 1,035 | 1,103 | (6 | ) | 1,038 | 1,114 | (7 | ) | |||||||||||||||||||||
North America | 5,073 | 4,968 | 2 | 1,316 | 1,289 | 2 | 1,325 | 1,284 | 3 | ||||||||||||||||||||||||
Asia Pacific | 2,795 | 2,886 | (3 | ) | 1,309 | 1,305 | 0 | 1,314 | 1,314 | 0 | |||||||||||||||||||||||
Bottling Investments | 10,907 | 11,916 | (8 | ) | 98 | 154 | (36 | ) | (163 | ) | 307 | — | |||||||||||||||||||||
Corporate | 48 | 65 | (25 | ) | (741 | ) | (1,126 | ) | 34 | 651 | 183 | 256 | |||||||||||||||||||||
Eliminations | (2,655 | ) | (2,950 | ) | 10 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 21,821 | $ | 22,867 | (5 | ) | $ | 5,000 | $ | 4,831 | 4 | $ | 6,193 | $ | 6,342 | (2 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the six months ended July 1, 2016, intersegment revenues were $17 million for Eurasia and Africa, $247 million for Europe, $34 million for Latin America, $1,975 million for North America, $292 million for Asia Pacific, $85 million for Bottling Investments and $5 million for Corporate. During the six months ended July 3, 2015, intersegment revenues were $7 million for Eurasia and Africa, $295 million for Europe, $37 million for Latin America, $2,199 million for North America, $317 million for Asia Pacific and $95 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) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended July 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) | $ | 11,539 | $ | 4,471 | $ | 7,068 | 61.3 | % | $ | 3,912 | $ | 297 | $ | 2,859 | 24.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (41 | ) | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (65 | ) | 65 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (84 | ) | 84 | |||||||||||||||||||||||||
Other Items | (15 | ) | 82 | (97 | ) | 9 | (107 | ) | 1 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 11,524 | $ | 4,553 | $ | 6,971 | 60.5 | % | $ | 3,921 | $ | — | $ | 3,050 | 26.5 | % | ||||||||||||||||
Three Months Ended July 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) | $ | 12,156 | $ | 4,748 | $ | 7,408 | 60.9 | % | $ | 4,204 | $ | 669 | $ | 2,535 | 20.9 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (94 | ) | 94 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (92 | ) | 92 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (383 | ) | 383 | |||||||||||||||||||||||||
Other Items | (7 | ) | 24 | (31 | ) | 19 | (100 | ) | 50 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 12,149 | $ | 4,772 | $ | 7,377 | 60.7 | % | $ | 4,223 | $ | — | $ | 3,154 | 26.0 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (5) | (6) | (5) | (7) | (56) | 13 | ||||||||||||||||||||||||||
% Currency Impact | (3) | (1) | (3) | (2) | — | (7) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | (3) | (5) | (1) | (5) | — | 20 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (5) | (5) | (6) | (7) | — | (3) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (3) | (1) | (4) | (2) | — | (6) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (3) | (4) | (2) | (5) | — | 3 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended July 1, 2016 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes1 | 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) | $ | 162 | $ | 305 | $ | 1,133 | $ | 4,299 | $ | 839 | 19.5 | % | $ | 12 | $ | 3,448 | $ | 0.79 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 41 | — | — | 41 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 65 | 24 | — | 41 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 18 | — | 18 | 4 | — | 14 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (1,124 | ) | (1,040 | ) | (26 | ) | — | (1,014 | ) | (0.23 | ) | ||||||||||||||||||||||||
Other Items | — | — | 11 | 12 | 6 | — | 6 | — | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (83 | ) | — | 83 | 0.02 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 162 | $ | 323 | $ | 20 | $ | 3,395 | $ | 764 | 22.5 | % | $ | 12 | $ | 2,619 | $ | 0.60 | |||||||||||||||||||
Three Months Ended July 3, 2015 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes1 | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share3 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 128 | $ | 200 | $ | 1,605 | $ | 4,361 | $ | 1,250 | 28.7 | % | $ | 3 | $ | 3,108 | $ | 0.71 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 94 | — | — | 94 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 92 | 33 | — | 59 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 9 | — | 9 | — | — | 9 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (1,390 | ) | (1,007 | ) | (474 | ) | — | (533 | ) | (0.12 | ) | ||||||||||||||||||||||||
Other Items | — | — | (6 | ) | 44 | 16 | — | 28 | 0.01 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (16 | ) | — | 16 | — | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 128 | $ | 209 | $ | 209 | $ | 3,593 | $ | 809 | 22.5 | % | $ | 3 | $ | 2,781 | $ | 0.63 | |||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share | ||||||||||||||||||||||||||||||
% Change — Reported (GAAP) | 27 | 52 | (29) | (1) | (33) | 445 | 11 | 12 | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 27 | 54 | (90) | (6) | (6) | 436 | (6) | (5) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability with the exception of certain tax matters previously discussed. |
2 | 4,377 million average shares outstanding — diluted |
3 | 4,408 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Six Months Ended July 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) | $ | 21,821 | $ | 8,540 | $ | 13,281 | 60.9 | % | $ | 7,673 | $ | 608 | $ | 5,000 | 22.9 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (240 | ) | 240 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (128 | ) | 128 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (130 | ) | 130 | |||||||||||||||||||||||||
Other Items | 32 | 130 | (98 | ) | 13 | (110 | ) | (1 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 21,853 | $ | 8,670 | $ | 13,183 | 60.3 | % | $ | 7,686 | $ | — | $ | 5,497 | 25.2 | % | ||||||||||||||||
Six Months Ended July 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) | $ | 22,867 | $ | 8,851 | $ | 14,016 | 61.3 | % | $ | 8,283 | $ | 902 | $ | 4,831 | 21.1 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (129 | ) | 129 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (182 | ) | 182 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (383 | ) | 383 | |||||||||||||||||||||||||
Other Items | (15 | ) | 27 | (42 | ) | 29 | (208 | ) | 137 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 22,852 | $ | 8,878 | $ | 13,974 | 61.1 | % | $ | 8,312 | $ | — | $ | 5,662 | 24.8 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (5) | (4) | (5) | (7) | (33) | 4 | ||||||||||||||||||||||||||
% Currency Impact | (4) | (2) | (5) | (3) | — | (10) | ||||||||||||||||||||||||||
% Change — Currency Neutral Reported | (1) | (2) | 0 | (5) | — | 13 | ||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (4) | (2) | (6) | (8) | — | (3) | ||||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (3) | (2) | (5) | (3) | — | (8) | ||||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (1) | (1) | (5) | — | 5 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Six Months Ended July 1, 2016 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes1 | 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) | $ | 303 | $ | 397 | $ | 791 | $ | 6,193 | $ | 1,240 | 20.0 | % | $ | 22 | $ | 4,931 | $ | 1.13 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 240 | — | — | 240 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 128 | 45 | — | 83 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | 21 | — | 21 | 4 | — | 17 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (773 | ) | (643 | ) | 117 | — | (760 | ) | (0.17 | ) | |||||||||||||||||||||||||
Other Items | — | — | 40 | 39 | 16 | — | 23 | 0.01 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (77 | ) | — | 77 | 0.02 | ||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 303 | $ | 418 | $ | 58 | $ | 5,978 | $ | 1,345 | 22.5 | % | $ | 22 | $ | 4,611 | $ | 1.05 | |||||||||||||||||||
Six Months Ended July 3, 2015 | |||||||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income before income taxes | Income taxes1 | Effective tax rate | Net income (loss) attributable to noncontrolling interests | Net income attributable to shareowners of The Coca-Cola Company | Diluted net income per share3 | |||||||||||||||||||||||||||||
Reported (GAAP) | $ | 575 | $ | 202 | $ | 1,580 | $ | 6,342 | $ | 1,665 | 26.3 | % | $ | 12 | $ | 4,665 | $ | 1.06 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 129 | — | — | 129 | 0.03 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 182 | 75 | — | 107 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | 82 | — | 82 | 6 | — | 76 | 0.02 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (1,344 | ) | (961 | ) | (464 | ) | — | (497 | ) | (0.11 | ) | ||||||||||||||||||||||||
Other Items | (320 | ) | — | 88 | 545 | 140 | — | 405 | 0.09 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 255 | $ | 284 | $ | 324 | $ | 6,319 | $ | 1,422 | 22.5 | % | $ | 12 | $ | 4,885 | $ | 1.11 | |||||||||||||||||||
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) | (47) | 97 | (50) | (2) | (25) | 82 | 6 | 7 | |||||||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | 19 | 47 | (82) | (5) | (5) | 81 | (6) | (5) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability with the exception of certain tax matters previously discussed. |
2 | 4,379 million average shares outstanding — diluted |
3 | 4,415 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 July 1, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (1) | 12 | |||
% Currency Impact | (9) | (10) | |||
% Change — Currency Neutral Reported | 8 | 22 | |||
% Structural Impact | (3) | — | |||
% Change — Currency Neutral Reported and Adjusted for Structural Impact | 12 | — | |||
% Change — After Considering Items (Non-GAAP) | (6) | (5) | |||
% Currency Impact After Considering Items (Non-GAAP) | (11) | (11) | |||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 6 | 6 | |||
% Structural Impact After Considering Items (Non-GAAP) | (4) | — | |||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP) | 10 | — | |||
Six Months Ended July 1, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (2) | 7 | |||
% Currency Impact | (12) | (13) | |||
% Change — Currency Neutral Reported | 10 | 20 | |||
% Structural Impact | (3) | — | |||
% Change — Currency Neutral Reported and Adjusted for Structural Impact | 13 | — | |||
% Change — After Considering Items (Non-GAAP) | (5) | (5) | |||
% Currency Impact After Considering Items (Non-GAAP) | (12) | (12) | |||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 6 | 7 | |||
% Structural Impact After Considering Items (Non-GAAP) | (3) | — | |||
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP) | 10 | — | |||
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 July 1, 2016 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 621 | $ | 1,410 | $ | 937 | $ | 2,709 | $ | 1,560 | $ | 5,615 | $ | 63 | $ | (1,376 | ) | $ | 11,539 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (6 | ) | — | — | (9 | ) | — | (15 | ) | |||||||||||||||||
After Considering Items (Non-GAAP) | $ | 621 | $ | 1,410 | $ | 937 | $ | 2,703 | $ | 1,560 | $ | 5,615 | $ | 54 | $ | (1,376 | ) | $ | 11,524 | ||||||||||
Three Months Ended July 3, 2015 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 658 | $ | 1,435 | $ | 973 | $ | 2,651 | $ | 1,601 | $ | 6,385 | $ | 25 | $ | (1,572 | ) | $ | 12,156 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (11 | ) | — | — | 4 | — | (7 | ) | ||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 658 | $ | 1,435 | $ | 973 | $ | 2,640 | $ | 1,601 | $ | 6,385 | $ | 29 | $ | (1,572 | ) | $ | 12,149 | ||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | (6) | (2) | (4) | 2 | (2) | (12) | 149 | 13 | (5) | ||||||||||||||||||||
% Currency Impact | (10) | 0 | (20) | 0 | 1 | (1) | 70 | — | (3) | ||||||||||||||||||||
% Change — Currency Neutral Reported | 4 | (2) | 16 | 2 | (3) | (11) | 79 | — | (3) | ||||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (3) | (4) | 0 | (1) | (1) | (11) | 30 | — | (5) | ||||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 7 | 2 | 16 | 4 | (2) | 0 | 49 | — | 3 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (6) | (2) | (4) | 2 | (2) | (12) | 79 | — | (5) | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (10) | 0 | (20) | 0 | 1 | (1) | 12 | — | (3) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 4 | (2) | 16 | 2 | (3) | (11) | 66 | — | (3) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net Operating Revenues by Segment: | |||||||||||||||||||||||||||||
Six Months Ended July 1, 2016 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 1,167 | $ | 2,614 | $ | 1,872 | $ | 5,073 | $ | 2,795 | $ | 10,907 | $ | 48 | $ | (2,655 | ) | $ | 21,821 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (8 | ) | — | — | 40 | — | 32 | |||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 1,167 | $ | 2,614 | $ | 1,872 | $ | 5,065 | $ | 2,795 | $ | 10,907 | $ | 88 | $ | (2,655 | ) | $ | 21,853 | ||||||||||
Six Months Ended July 3, 2015 | |||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 1,296 | $ | 2,647 | $ | 2,039 | $ | 4,968 | $ | 2,886 | $ | 11,916 | $ | 65 | $ | (2,950 | ) | $ | 22,867 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Other Items | — | — | — | (17 | ) | — | — | 2 | — | (15 | ) | ||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 1,296 | $ | 2,647 | $ | 2,039 | $ | 4,951 | $ | 2,886 | $ | 11,916 | $ | 67 | $ | (2,950 | ) | $ | 22,852 | ||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | (10) | (1) | (8) | 2 | (3) | (8) | (25) | 10 | (5) | ||||||||||||||||||||
% Currency Impact | (11) | 1 | (22) | 0 | (1) | (2) | (55) | — | (4) | ||||||||||||||||||||
% Change — Currency Neutral Reported | 2 | (2) | 14 | 2 | (2) | (7) | 29 | — | (1) | ||||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (3) | (3) | 0 | (1) | (2) | (6) | 24 | — | (3) | ||||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 5 | 1 | 14 | 3 | 0 | 0 | 6 | — | 2 | ||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (10) | (1) | (8) | 2 | (3) | (8) | 33 | — | (4) | ||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (11) | 1 | (22) | 0 | (1) | (2) | 4 | — | (3) | ||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 2 | (2) | 14 | 2 | (2) | (7) | 28 | — | (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 July 1, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 11,539 | |||
Bottling Investments Net Operating Revenues | (5,615 | ) | |||
Consolidated Eliminations | 1,376 | ||||
Intersegment Core Net Operating Revenue Eliminations | (7 | ) | |||
Core Net Operating Revenues (Non-GAAP) | 7,293 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (15 | ) | |||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 7,278 | |||
Three Months Ended July 3, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 12,156 | |||
Bottling Investments Net Operating Revenues | (6,385 | ) | |||
Consolidated Eliminations | 1,572 | ||||
Intersegment Core Net Operating Revenue Eliminations | (4 | ) | |||
Core Net Operating Revenues (Non-GAAP) | 7,339 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (7 | ) | |||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 7,332 | |||
% Change — Reported (GAAP) Net Operating Revenues | (5) | ||||
% Change — Core Net Operating Revenues (Non-GAAP) | (1) | ||||
% Currency Impact | (3) | ||||
% Change — Core Currency Neutral Reported (Non-GAAP) | 2 | ||||
% Acquisitions, Divestitures and Structural Items | (2) | ||||
% Change — Core Organic Revenues (Non-GAAP)2 | 4 | ||||
% Change — Core After Considering Items (Non-GAAP) | (1) | ||||
% Currency Impact After Considering Items (Non-GAAP) | (3) | ||||
% Change — Core Currency Neutral After Considering Items (Non-GAAP) | 3 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | Core net operating revenues included 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 $7 million and $4 million during the three months ended July 1, 2016 and July 3, 2015, respectively. |
2 | Core organic revenue growth included 4 points of positive price/mix. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Net Operating Revenues: 1 | |||||
Six Months Ended July 1, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 21,821 | |||
Bottling Investments Net Operating Revenues | (10,907 | ) | |||
Consolidated Eliminations | 2,655 | ||||
Intersegment Core Net Operating Revenue Eliminations | (13 | ) | |||
Core Net Operating Revenues (Non-GAAP) | 13,556 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | 32 | ||||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 13,588 | |||
Six Months Ended July 3, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 22,867 | |||
Bottling Investments Net Operating Revenues | (11,916 | ) | |||
Consolidated Eliminations | 2,950 | ||||
Intersegment Core Net Operating Revenue Eliminations | (7 | ) | |||
Core Net Operating Revenues (Non-GAAP) | 13,894 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (15 | ) | |||
Core Net Operating Revenues After Considering Items (Non-GAAP) | $ | 13,879 | |||
% Change — Reported (GAAP) Net Operating Revenues | (5) | ||||
% Change — Core Net Operating Revenues (Non-GAAP) | (2) | ||||
% Currency Impact | (4) | ||||
% Change — Core Currency Neutral Reported (Non-GAAP) | 2 | ||||
% Acquisitions, Divestitures and Structural Items | (1) | ||||
% Change — Core Organic Revenues (Non-GAAP)2 | 4 | ||||
% Change — Core After Considering Items (Non-GAAP) | (2) | ||||
% Currency Impact After Considering Items (Non-GAAP) | (4) | ||||
% Change — Core Currency Neutral After Considering Items (Non-GAAP) | 2 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | Core net operating revenues included 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 $13 million and $7 million during the six months ended July 1, 2016 and July 3, 2015, respectively. |
2 | Core organic revenue growth included 3 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 July 1, 2016 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 248 | $ | 808 | $ | 512 | $ | 735 | $ | 758 | $ | 216 | $ | (418 | ) | $ | 2,859 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 41 | — | 41 | ||||||||||||||||||
Productivity & Reinvestment | 1 | — | (1 | ) | 27 | — | 17 | 21 | 65 | |||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 60 | 24 | 84 | ||||||||||||||||||
Other Items | — | — | — | (26 | ) | — | (63 | ) | 90 | 1 | ||||||||||||||||
After Considering Items (Non-GAAP) | $ | 249 | $ | 808 | $ | 511 | $ | 736 | $ | 758 | $ | 271 | $ | (283 | ) | $ | 3,050 | |||||||||
Three Months Ended July 3, 2015 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 275 | $ | 836 | $ | 525 | $ | 754 | $ | 761 | $ | 164 | $ | (780 | ) | $ | 2,535 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 94 | — | 94 | ||||||||||||||||||
Productivity & Reinvestment | 3 | — | 3 | 31 | 2 | 49 | 4 | 92 | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 383 | 383 | ||||||||||||||||||
Other Items | — | — | — | (40 | ) | — | (12 | ) | 102 | 50 | ||||||||||||||||
After Considering Items (Non-GAAP) | $ | 278 | $ | 836 | $ | 528 | $ | 745 | $ | 763 | $ | 295 | $ | (291 | ) | $ | 3,154 | |||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (10) | (3) | (2) | (3) | 0 | 31 | 47 | 13 | ||||||||||||||||||
% Currency Impact | (12) | 0 | (29) | 0 | (1) | (4) | 3 | (7) | ||||||||||||||||||
% Change — Currency Neutral Reported | 2 | (4) | 27 | (3) | 1 | 35 | 44 | 20 | ||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (10) | (3) | (3) | (1) | (1) | (9) | 3 | (3) | ||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (12) | 0 | (29) | 0 | (1) | (1) | 2 | (6) | ||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 2 | (4) | 26 | (1) | 1 | (7) | 0 | 3 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Operating Income (Loss) by Segment: | ||||||||||||||||||||||||||
Six Months Ended July 1, 2016 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 484 | $ | 1,499 | $ | 1,035 | $ | 1,316 | $ | 1,309 | $ | 98 | $ | (741 | ) | $ | 5,000 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 240 | — | 240 | ||||||||||||||||||
Productivity & Reinvestment | — | 4 | (1 | ) | 58 | 1 | 38 | 28 | 128 | |||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 105 | 25 | 130 | ||||||||||||||||||
Other Items | — | — | — | (42 | ) | — | (105 | ) | 146 | (1 | ) | |||||||||||||||
After Considering Items (Non-GAAP) | $ | 484 | $ | 1,503 | $ | 1,034 | $ | 1,332 | $ | 1,310 | $ | 376 | $ | (542 | ) | $ | 5,497 | |||||||||
Six Months Ended July 3, 2015 | ||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 554 | $ | 1,552 | $ | 1,103 | $ | 1,289 | $ | 1,305 | $ | 154 | $ | (1,126 | ) | $ | 4,831 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 129 | — | 129 | ||||||||||||||||||
Productivity & Reinvestment | 15 | (11 | ) | 3 | 73 | (3 | ) | 81 | 24 | 182 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | 383 | 383 | ||||||||||||||||||
Other Items | — | — | 33 | (50 | ) | 2 | (23 | ) | 175 | 137 | ||||||||||||||||
After Considering Items (Non-GAAP) | $ | 569 | $ | 1,541 | $ | 1,139 | $ | 1,312 | $ | 1,304 | $ | 341 | $ | (544 | ) | $ | 5,662 | |||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (13) | (3) | (6) | 2 | 0 | (36) | 34 | 4 | ||||||||||||||||||
% Currency Impact | (14) | 0 | (30) | 1 | (2) | 0 | (3) | (10) | ||||||||||||||||||
% Change — Currency Neutral Reported | 1 | (4) | 24 | 1 | 3 | (37) | 37 | 13 | ||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (15) | (2) | (9) | 2 | 0 | 10 | 0 | (3) | ||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (13) | 0 | (29) | 1 | (2) | (2) | 0 | (8) | ||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (3) | 20 | 1 | 3 | 12 | 0 | 5 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||||||
Three Months Ended July 1, 2016 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 256 | $ | 822 | $ | 520 | $ | 745 | $ | 760 | $ | 269 | $ | 927 | $ | 4,299 | |||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 41 | — | 41 | |||||||||||||||||||||||||
Productivity & Reinvestment | 1 | — | (1 | ) | 27 | — | 17 | 21 | 65 | ||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | 15 | 3 | 18 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 259 | (1,299 | ) | (1,040 | ) | |||||||||||||||||||||||
Other Items | — | — | — | (26 | ) | — | (63 | ) | 101 | 12 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 257 | $ | 822 | $ | 519 | $ | 746 | $ | 760 | $ | 538 | $ | (247 | ) | $ | 3,395 | ||||||||||||||||
Three Months Ended July 3, 2015 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 287 | $ | 843 | $ | 526 | $ | 752 | $ | 766 | $ | 353 | $ | 834 | $ | 4,361 | |||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 94 | — | 94 | |||||||||||||||||||||||||
Productivity & Reinvestment | 3 | — | 3 | 31 | 2 | 49 | 4 | 92 | |||||||||||||||||||||||||
Equity Investees | — | 5 | — | — | — | 4 | — | 9 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 12 | (1,019 | ) | (1,007 | ) | |||||||||||||||||||||||
Other Items | — | — | — | (40 | ) | — | (12 | ) | 96 | 44 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 290 | $ | 848 | $ | 529 | $ | 743 | $ | 768 | $ | 500 | $ | (85 | ) | $ | 3,593 | ||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (11) | (3) | (1) | (1) | (1) | (24) | 11 | (1) | |||||||||||||||||||||||||
% Currency Impact | (11) | 0 | (29) | 0 | (1) | (6) | (22) | (9) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 0 | (3) | 28 | (1) | 0 | (18) | 34 | 8 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (11) | (3) | (2) | 0 | (1) | 7 | (187) | (6) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (11) | 0 | (29) | 0 | (1) | (4) | (225) | (11) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 0 | (3) | 27 | 0 | 0 | 11 | 38 | 6 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||||||
Six Months Ended July 1, 2016 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 502 | $ | 1,526 | $ | 1,038 | $ | 1,325 | $ | 1,314 | $ | (163 | ) | $ | 651 | $ | 6,193 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 240 | — | 240 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | 4 | (1 | ) | 58 | 1 | 38 | 28 | 128 | ||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | 18 | 3 | 21 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 673 | (1,316 | ) | (643 | ) | |||||||||||||||||||||||
Other Items | — | — | — | (42 | ) | — | (105 | ) | 186 | 39 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 502 | $ | 1,530 | $ | 1,037 | $ | 1,341 | $ | 1,315 | $ | 701 | $ | (448 | ) | $ | 5,978 | ||||||||||||||||
Six Months Ended July 3, 2015 | |||||||||||||||||||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
Reported (GAAP) | $ | 573 | $ | 1,567 | $ | 1,114 | $ | 1,284 | $ | 1,314 | $ | 307 | $ | 183 | $ | 6,342 | |||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 129 | — | 129 | |||||||||||||||||||||||||
Productivity & Reinvestment | 15 | (11 | ) | 3 | 73 | (3 | ) | 81 | 24 | 182 | |||||||||||||||||||||||
Equity Investees | — | 6 | — | — | — | 76 | — | 82 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 33 | (994 | ) | (961 | ) | |||||||||||||||||||||||
Other Items | — | — | 33 | (50 | ) | 2 | (23 | ) | 583 | 545 | |||||||||||||||||||||||
After Considering Items (Non-GAAP) | $ | 588 | $ | 1,562 | $ | 1,150 | $ | 1,307 | $ | 1,313 | $ | 603 | $ | (204 | ) | $ | 6,319 | ||||||||||||||||
Eurasia & Africa | Europe | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||||||||||
% Change — Reported (GAAP) | (12) | (3) | (7) | 3 | 0 | — | 256 | (2) | |||||||||||||||||||||||||
% Currency Impact | (13) | 0 | (30) | 1 | (2) | — | (171) | (12) | |||||||||||||||||||||||||
% Change — Currency Neutral Reported | 1 | (3) | 23 | 3 | 2 | — | 428 | 10 | |||||||||||||||||||||||||
% Change — After Considering Items (Non-GAAP) | (15) | (2) | (10) | 3 | 0 | 16 | (120) | (5) | |||||||||||||||||||||||||
% Currency Impact After Considering Items (Non-GAAP) | (13) | 0 | (29) | 1 | (2) | (5) | (136) | (12) | |||||||||||||||||||||||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | (1) | (2) | 19 | 2 | 2 | 21 | 16 | 6 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||
(UNAUDITED) | |||||||
Operating Expense Leverage: | |||||||
Three Months Ended July 1, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | 13 | (5) | 17 | ||||
% Change — Currency Neutral Reported | 20 | (1) | 21 | ||||
% Change — After Considering Items (Non-GAAP) | (3) | (6) | 2 | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 3 | (2) | 5 | ||||
Six Months Ended July 1, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | 4 | (5) | 9 | ||||
% Change — Currency Neutral Reported | 13 | 0 | 13 | ||||
% Change — After Considering Items (Non-GAAP) | (3) | (6) | 3 | ||||
% Change — Currency Neutral After Considering Items (Non-GAAP) | 5 | (1) | 6 |
Note: | Certain rows may not add due to rounding. |
Operating Margin: | ||||||
Three Months Ended July 1, 2016 | Three Months Ended July 3, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 24.78 | % | 20.85 | % | 393 | |
Impact on Operating Margin of Items Impacting Comparability (Non-GAAP) | (1.68 | )% | (5.10 | )% | ||
Operating Margin After Considering Items (Non-GAAP) | 26.46 | % | 25.95 | % | 51 | |
Impact on Operating Margin of Currency After Considering Items (Non-GAAP) | (0.92 | )% | 0.00 | % | ||
Currency Neutral Operating Margin After Considering Items (Non-GAAP) | 27.38 | % | 25.95 | % | 143 | |
Six Months Ended July 1, 2016 | Six Months Ended July 3, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 22.91 | % | 21.13 | % | 178 | |
Impact on Operating Margin of Items Impacting Comparability (Non-GAAP) | (2.24 | )% | (3.65 | )% | ||
Operating Margin After Considering Items (Non-GAAP) | 25.15 | % | 24.78 | % | 37 | |
Impact on Operating Margin of Currency After Considering Items (Non-GAAP) | (1.02 | )% | 0.00 | % | ||
Currency Neutral Operating Margin After Considering Items (Non-GAAP) | 26.17 | % | 24.78 | % | 139 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Six Months Ended July 1, 2016 | Six Months Ended July 3, 2015 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,108 | $ | 410 | ||||||
Purchases of Stock for Treasury | (2,156 | ) | (1,298 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 3 | (3 | ) | |||||||
Net Change in Treasury Stock Payables2 | (34 | ) | 15 | |||||||
Net Treasury Share Repurchases (Non-GAAP) | $ | (1,079 | ) | $ | (876 | ) |
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: | ||||||||||
Six Months Ended July 1, 2016 | Six Months Ended July 3, 2015 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP) | $ | 3,820 | $ | 5,118 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments for Pension Plan Contributions | 471 | — | ||||||||
After Considering Items (Non-GAAP) | $ | 4,291 | $ | 5,118 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | (25) | |||||||||
% Change — After Considering Items (Non-GAAP) | (16) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |