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• | Net Revenues Declined 7%, Impacted by Foreign Currency and Structural Changes |
• | Organic Revenues (Non-GAAP) Grew 3% |
• | Operating Margin Expanded More than 50 Basis Points |
• | EPS of $0.24 and Comparable EPS (Non-GAAP) of $0.49 |
• | Full Year Organic Revenue and Comparable EPS Outlook (Both Non-GAAP) Remain Unchanged |
Highlights |
Quarterly Performance |
• | Net revenues were $10.6 billion, a 7% decline from prior year, impacted by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures and structural items of 8%. Organic revenues (non-GAAP) grew 3%, evenly split between volume and price/mix growth. |
• | We gained global volume and value share in total nonalcoholic ready-to-drink ("NARTD") beverages. Value share grew ahead of volume share, as a result of our focus on accelerating our revenue growth management strategies, including segmented market roles. |
• | Sparkling beverage unit case volume was even as growth in three of the four geographic operating segments was offset by a 2% decline in Latin America. |
• | Still beverage unit case volume grew 3%, primarily driven by water and sports drinks. |
• | Our operating margin expanded more than 50 basis points, which included items impacting comparability, the impact of changes in foreign currency exchange rates and structural impacts. Our comparable currency neutral operating margin (non-GAAP) also expanded more than 50 basis points, driven by solid pricing initiatives, a slightly favorable cost environment, continued productivity and segment mix. |
Company Updates |
• | Disciplined brand and growth investments: Year to date, we have introduced more than 500 new products across our system. For example, we successfully launched Coca-Cola Zero Sugar in Great Britain, a new and improved sugar-free product replacing Coca-Cola Zero in that market. With significant media investment behind this launch, we saw strong double-digit unit case volume growth in the quarter compared to the prior year Great Britain Coca-Cola Zero base. We continued the rollout of our new "Taste the Feeling" marketing campaign, which has now been activated in more than 200 markets. The recently announced "One Brand" strategy, which unites all four Trademark Coca-Cola brands under a common visual identity, has now been strategically rolled out in 12 of our top markets. We announced the expansion of our coffee portfolio in the United States with the anticipated launch in early 2017 of Gold Peak ready-to-drink ("RTD") cold brew coffees and a partnership with Dunkin' Brands Group to launch Dunkin' Donuts branded RTD coffee beverages. |
• | Revenue growth through segmented market roles: In North America, both reported net revenues and organic revenues (non-GAAP) grew 3%, reflecting ongoing pricing initiatives in our sparkling business as well as continued growth in our stills portfolio. In Japan, recent innovations such as extensions of the Ayataka tea trademark and Olympic activations behind brand Coca-Cola contributed to 4% unit case volume growth. |
• | Core business model focus: We continued to make progress against our refranchising plans and remain on track to meet our goal by the end of 2017. In North America, we announced today six definitive agreements and four transaction closings. In Africa, Coca-Cola Beverages Africa began operations during the quarter, and we recently laid the groundwork to acquire Anheuser-Busch InBev's majority stake in that entity in order to implement our long-term strategic plans in these territories with other partners. And in Latin America, we reached a comprehensive agreement with Arca Continental regarding concentrate prices on sparkling soft drinks in Mexico and other initiatives to keep jointly capturing value in Arca Continental's Mexican territories. This agreement follows our new understanding |
• | Drive efficiency through productivity: We remain on track to deliver more than $600 million of productivity in 2016 by scaling initiatives and embedding zero-based work into daily routines. We continue to use productivity to prudently fund marketing while delivering operating margin expansion. |
• | Sustainable business practices: We reached an important milestone recently with respect to water stewardship initiatives. The Company and its global bottling partners announced during the quarter that we met our goal to replenish the equivalent amount of water used in global sales volume back to nature and communities. The Company is the first Fortune 500 company to publicly claim achieving such a water replenishment target. |
Operating Review – Three Months Ended September 30, 2016 |
Percent Change | Concentrate Sales 1 | Price/Mix | Currency Impact | Acquisitions, Divestitures and Structural Items, Net | Reported Net Revenues | Organic Revenues 2 | Unit Case Volume | ||
Consolidated | 1 | 1 | (2) | (8) | (7) | 3 | 1 | ||
Europe, Middle East & Africa 3 | (1) | 3 | (2) | (3) | (4) | 2 | 2 | ||
Latin America | 0 | 11 | (16) | 0 | (4) | 11 | (2) | ||
North America | 1 | 2 | 0 | 0 | 3 | 3 | 1 | ||
Asia Pacific | 9 | (8) | 4 | (1) | 4 | 0 | 2 | ||
Bottling Investments | (2) | 3 | (1) | (19) | (19) | 2 | (22) |
Percent Change | Reported Income Before Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Impact | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | (17) | (13) | (3) | (1) | (2) | 2 |
Europe, Middle East & Africa 3 | (2) | 0 | (2) | 1 | ||
Latin America | (16) | (13) | (24) | 21 | ||
North America | 12 | 5 | 0 | 8 | ||
Asia Pacific | 2 | 0 | 3 | (1) | ||
Bottling Investments | (34) | (35) | 0 | 1 | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | (27) | (24) | (3) | 0 |
Consolidated |
• | Positive price/mix included 1 point of negative segment mix. Bottling Investments was the primary driver of the negative segment mix. |
• | The decline in income before taxes included items impacting comparability, the impact of changes in foreign currency exchange rates and structural impacts. Comparable currency neutral income before |
• | The effective tax rate was 26.5%. The underlying effective tax rate (non-GAAP) was 22.5%. |
• | EPS was $0.24. Items impacting comparability decreased reported EPS by a net $0.25 and were primarily related to non-cash charges associated with the refranchising of bottling territories in North America. |
• | Year-to-date cash from operations was $6.7 billion, down $1.7 billion due to the deconsolidation of our German bottling operations, the impact of contributions to our pension plans and fluctuations in foreign currency exchange rates. |
• | Year-to-date purchases of stock for treasury were $2.5 billion. Net share repurchases (non-GAAP) totaled $1.2 billion. |
Europe, Middle East & Africa |
• | Positive price/mix was primarily driven by favorable geographic and product mix. Acquisitions, divestitures and structural items reflect the impact of bottling transactions in South Africa. |
• | The decline in income before taxes included the impact of changes in foreign currency exchange rates and structural impacts. Comparable currency neutral income before taxes (non-GAAP) included the unfavorable impact of bottling transactions in South Africa. |
• | We gained volume and value share in total NARTD beverages. Unit case volume growth of 2% included 1 point of growth from acquired brands, which were primarily brands in Africa. Sparkling beverage volume grew 1% and still beverage volume grew 4%. Unit case volume growth in our Western Europe and Middle East & North Africa business units was partially offset by a decline in our Central & Eastern Europe business unit, which was driven by poor weather and the cycling of strong third quarter 2015 performance. |
Latin America |
• | Positive price/mix benefited from solid performance in Mexico and inflationary markets within our Latin Center and South Latin business units. |
• | We gained volume and value share in still beverages. Sparkling beverage volume declined 2% and still beverage volume declined 1%. Unit case volume performance was driven by a high single-digit decline in our Latin Center business unit amidst continued macroeconomic challenges in Venezuela and a mid single-digit decline in Brazil. These declines were partially offset by mid single-digit growth in Mexico. |
North America |
• | Positive price/mix reflects the continued execution of disciplined occasion, brand, price and package strategy. Sparkling beverage price/mix grew 3%. |
• | Income before taxes included items impacting comparability and structural impacts. Comparable currency neutral income before taxes (non-GAAP) was favorably impacted by our productivity initiatives and the ongoing refranchising in North America. |
• | We gained value share in total NARTD beverages for the 26th consecutive quarter. Sparkling beverage volume growth was slightly positive, rounding to even. Growth in Sprite, Fanta and energy drinks was offset primarily by a decline in Diet Coke. Coca-Cola Zero grew low single digits. Still beverage volume grew 2%, primarily driven by water and sports drinks. Volume in the dairy category grew double digits and vitaminwater grew high single digits. |
Asia Pacific |
• | Negative price/mix was driven by unfavorable product and channel mix as well as the cycling of items from the prior year. |
• | We gained volume and value share in total NARTD beverages. Sparkling beverage volume growth was slightly positive, rounding to even. Still beverage volume grew 5%. Unit case volume growth included 4% growth in Japan and 2% growth in China, partially offset by a 4% decline in India. |
Bottling Investments |
• | Price/mix results reflect strong performance across several of our key bottling operations, particularly North America, and positive geographic mix. Acquisitions, divestitures and structural items reflect the impact of the refranchised North America bottling territories and the deconsolidation of our German and South African bottling operations. |
• | The decline in income before taxes included items impacting comparability and structural impacts. Comparable currency neutral income before taxes (non-GAAP) was unfavorably impacted by the ongoing refranchising of North America bottling territories and the deconsolidation of our German and South African bottling operations. |
Operating Results – Nine Months Ended September 30, 2016 |
Percent Change | Concentrate Sales 1 | Price/Mix | Currency Impact | Acquisitions, Divestitures and Structural Items, Net | Reported Net Revenues | Organic Revenues 2 | Unit Case Volume | ||
Consolidated | 1 | 2 | (3) | (5) | (5) | 2 | 1 | ||
Europe, Middle East & Africa 3 | (1) | 3 | (3) | (3) | (4) | 2 | 0 | ||
Latin America | 0 | 12 | (20) | 0 | (7) | 13 | 0 | ||
North America | 0 | 3 | 0 | 0 | 3 | 3 | 1 | ||
Asia Pacific | 4 | (4) | 1 | (2) | (1) | 0 | 2 | ||
Bottling Investments | (1) | 1 | (2) | (10) | (12) | 0 | (13) |
Percent Change | Reported Income Before Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Impact | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | (6) | (1) | (9) | 4 | (3) | 7 |
Europe, Middle East & Africa 3 | (4) | 0 | (3) | (1) | ||
Latin America | (10) | (2) | (27) | 20 | ||
North America | 6 | 2 | 0 | 4 | ||
Asia Pacific | 1 | 0 | (1) | 1 | ||
Bottling Investments | (274) | (284) | (3) | 13 | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | (1) | 3 | (9) | 5 |
Outlook |
• | 3% growth in organic revenues (non-GAAP) – No Change |
• | 6% to 7% headwind from acquisitions, divestitures and structural items – No Change |
• | 2% to 3% currency headwind based on the current spot rates and including the impact of hedged positions – No Change |
• | 6% to 8% growth in comparable currency neutral income before taxes (structurally adjusted) (non-GAAP) – No Change |
• | 4% structural headwind – No Change |
• | 8% to 9% currency headwind based on the current spot rates and including the impact of hedged positions – No Change |
• | Underlying effective tax rate (non-GAAP): 22.5% – No Change |
• | Net capital expenditures: Slightly less than $2.5 billion – Updated |
• | Net share repurchases (non-GAAP): $2.0 billion to $2.5 billion – No Change |
• | Net revenues: 11% headwind from acquisitions, divestitures and structural items; 1% to 2% currency headwind based on the current spot rates and including the impact of hedged positions |
• | Income before taxes: 6% to 7% structural headwind; 8% to 9% currency headwind based on the current spot rates and including the impact of hedged positions |
Notes |
• | All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period. |
• | 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. |
• | "Core business" represents the combined performance from the Europe, Middle East & Africa; Latin America; North America; Asia Pacific; and Corporate operating segments offset by intersegment eliminations. |
• | "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. In the reconciliation of reported net revenues, "concentrate sales" 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. |
• | "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. |
• | 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. |
Conference Call |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Income | ||||||||||
(UNAUDITED) | ||||||||||
(In millions except per share data) | ||||||||||
Three Months Ended | ||||||||||
September 30, 2016 | October 2, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 10,633 | $ | 11,427 | (7 | ) | ||||
Cost of goods sold | 4,131 | 4,577 | (10 | ) | ||||||
Gross Profit | 6,502 | 6,850 | (5 | ) | ||||||
Selling, general and administrative expenses | 4,009 | 4,207 | (5 | ) | ||||||
Other operating charges | 222 | 264 | (16 | ) | ||||||
Operating Income | 2,271 | 2,379 | (5 | ) | ||||||
Interest income | 164 | 155 | 6 | |||||||
Interest expense | 182 | 138 | 32 | |||||||
Equity income (loss) — net | 281 | 200 | 40 | |||||||
Other income (loss) — net | (1,106 | ) | (871 | ) | (27 | ) | ||||
Income Before Income Taxes | 1,428 | 1,725 | (17 | ) | ||||||
Income taxes | 378 | 272 | 39 | |||||||
Consolidated Net Income | 1,050 | 1,453 | (28 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 4 | 4 | (9 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,046 | $ | 1,449 | (28 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.24 | $ | 0.33 | (27 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,364 | 4,399 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended September 30, 2016 and October 2, 2015, basic net income per share was $0.24 for 2016 and $0.33 for 2015 based on average shares outstanding — basic of 4,315 million for 2016 and 4,349 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) | ||||||||||
Nine Months Ended | ||||||||||
September 30, 2016 | October 2, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 32,454 | $ | 34,294 | (5 | ) | ||||
Cost of goods sold | 12,671 | 13,428 | (6 | ) | ||||||
Gross Profit | 19,783 | 20,866 | (5 | ) | ||||||
Selling, general and administrative expenses | 11,682 | 12,490 | (6 | ) | ||||||
Other operating charges | 830 | 1,166 | (29 | ) | ||||||
Operating Income | 7,271 | 7,210 | 1 | |||||||
Interest income | 472 | 459 | 3 | |||||||
Interest expense | 485 | 713 | (32 | ) | ||||||
Equity income (loss) — net | 678 | 402 | 68 | |||||||
Other income (loss) — net | (315 | ) | 709 | — | ||||||
Income Before Income Taxes | 7,621 | 8,067 | (6 | ) | ||||||
Income taxes | 1,618 | 1,937 | (16 | ) | ||||||
Consolidated Net Income | 6,003 | 6,130 | (2 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 26 | 16 | 57 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 5,977 | $ | 6,114 | (2 | ) | ||||
Diluted Net Income Per Share2 | $ | 1.37 | $ | 1.39 | (1 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,374 | 4,410 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the nine months ended September 30, 2016 and October 2, 2015, basic net income per share was $1.38 for 2016 and $1.40 for 2015 based on average shares outstanding — basic of 4,322 million for 2016 and 4,357 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) | |||||||
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 11,147 | $ | 7,309 | |||
Short-term investments | 11,265 | 8,322 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 22,412 | 15,631 | |||||
Marketable securities | 3,157 | 4,269 | |||||
Trade accounts receivable, less allowances of $472 and $352, respectively | 4,082 | 3,941 | |||||
Inventories | 2,751 | 2,902 | |||||
Prepaid expenses and other assets | 3,091 | 2,752 | |||||
Assets held for sale | 2,463 | 3,900 | |||||
Total Current Assets | 37,956 | 33,395 | |||||
Equity Method Investments | 16,917 | 12,318 | |||||
Other Investments | 1,110 | 3,470 | |||||
Other Assets | 4,526 | 4,110 | |||||
Property, Plant and Equipment — net | 11,172 | 12,571 | |||||
Trademarks With Indefinite Lives | 6,183 | 5,989 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 4,438 | 6,000 | |||||
Goodwill | 10,865 | 11,289 | |||||
Other Intangible Assets | 760 | 854 | |||||
Total Assets | $ | 93,927 | $ | 89,996 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 11,153 | $ | 9,660 | |||
Loans and notes payable | 12,088 | 13,129 | |||||
Current maturities of long-term debt | 3,473 | 2,676 | |||||
Accrued income taxes | 396 | 331 | |||||
Liabilities held for sale | 682 | 1,133 | |||||
Total Current Liabilities | 27,792 | 26,929 | |||||
Long-Term Debt | 31,663 | 28,311 | |||||
Other Liabilities | 3,984 | 4,301 | |||||
Deferred Income Taxes | 4,243 | 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 | 14,882 | 14,016 | |||||
Reinvested earnings | 66,457 | 65,018 | |||||
Accumulated other comprehensive income (loss) | (10,209 | ) | (10,174 | ) | |||
Treasury stock, at cost — 2,727 and 2,716 shares, respectively | (46,814 | ) | (45,066 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 26,076 | 25,554 | |||||
Equity Attributable to Noncontrolling Interests | 169 | 210 | |||||
Total Equity | 26,245 | 25,764 | |||||
Total Liabilities and Equity | $ | 93,927 | $ | 89,996 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Nine Months Ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 6,003 | $ | 6,130 | |||
Depreciation and amortization | 1,323 | 1,443 | |||||
Stock-based compensation expense | 191 | 171 | |||||
Deferred income taxes | (98 | ) | 212 | ||||
Equity (income) loss — net of dividends | (417 | ) | (150 | ) | |||
Foreign currency adjustments | 193 | (76 | ) | ||||
Significant (gains) losses on sales of assets — net | 364 | (550 | ) | ||||
Other operating charges | 277 | 697 | |||||
Other items | (205 | ) | 859 | ||||
Net change in operating assets and liabilities | (908 | ) | (346 | ) | |||
Net cash provided by operating activities | 6,723 | 8,390 | |||||
Investing Activities | |||||||
Purchases of investments | (12,733 | ) | (12,006 | ) | |||
Proceeds from disposals of investments | 13,210 | 10,403 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (767 | ) | (2,489 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 745 | 416 | |||||
Purchases of property, plant and equipment | (1,561 | ) | (1,670 | ) | |||
Proceeds from disposals of property, plant and equipment | 92 | 50 | |||||
Other investing activities | (319 | ) | (117 | ) | |||
Net cash provided by (used in) investing activities | (1,333 | ) | (5,413 | ) | |||
Financing Activities | |||||||
Issuances of debt | 22,667 | 34,298 | |||||
Payments of debt | (20,406 | ) | (30,159 | ) | |||
Issuances of stock | 1,295 | 732 | |||||
Purchases of stock for treasury | (2,509 | ) | (1,966 | ) | |||
Dividends | (3,028 | ) | (4,313 | ) | |||
Other financing activities | 198 | 230 | |||||
Net cash provided by (used in) financing activities | (1,783 | ) | (1,178 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 231 | (774 | ) | ||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 3,838 | 1,025 | |||||
Balance at beginning of period | 7,309 | 8,958 | |||||
Balance at end of period | $ | 11,147 | $ | 9,983 |
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 | |||||||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,852 | $ | 1,933 | (4 | ) | $ | 914 | $ | 930 | (2 | ) | $ | 922 | $ | 945 | (2 | ) | |||||||||||||||
Latin America | 965 | 1,012 | (4 | ) | 435 | 538 | (19 | ) | 447 | 535 | (16 | ) | |||||||||||||||||||||
North America | 2,664 | 2,580 | 3 | 666 | 585 | 14 | 653 | 581 | 12 | ||||||||||||||||||||||||
Asia Pacific | 1,460 | 1,406 | 4 | 583 | 571 | 2 | 589 | 576 | 2 | ||||||||||||||||||||||||
Bottling Investments | 4,840 | 5,948 | (19 | ) | 124 | 85 | 46 | (734 | ) | (547 | ) | (34 | ) | ||||||||||||||||||||
Corporate | 47 | 55 | (16 | ) | (451 | ) | (330 | ) | (37 | ) | (449 | ) | (365 | ) | (23 | ) | |||||||||||||||||
Eliminations | (1,195 | ) | (1,507 | ) | 21 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 10,633 | $ | 11,427 | (7 | ) | $ | 2,271 | $ | 2,379 | (5 | ) | $ | 1,428 | $ | 1,725 | (17 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the three months ended September 30, 2016, intersegment revenues were $16 million for Latin America, $1,003 million for North America, $145 million for Asia Pacific and $31 million for Bottling Investments. During the three months ended October 2, 2015, intersegment revenues were $169 million for Europe, Middle East & Africa, $19 million for Latin America, $1,112 million for North America, $159 million for Asia Pacific and $48 million for Bottling Investments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues 1 | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | September 30, 2016 | October 2, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 5,633 | $ | 5,876 | (4 | ) | $ | 2,897 | $ | 3,036 | (5 | ) | $ | 2,950 | $ | 3,085 | (4 | ) | |||||||||||||||
Latin America | 2,837 | 3,051 | (7 | ) | 1,470 | 1,641 | (10 | ) | 1,485 | 1,649 | (10 | ) | |||||||||||||||||||||
North America | 7,737 | 7,548 | 3 | 1,982 | 1,874 | 6 | 1,978 | 1,865 | 6 | ||||||||||||||||||||||||
Asia Pacific | 4,255 | 4,292 | (1 | ) | 1,892 | 1,876 | 1 | 1,903 | 1,890 | 1 | |||||||||||||||||||||||
Bottling Investments | 15,747 | 17,864 | (12 | ) | 222 | 239 | (7 | ) | (897 | ) | (240 | ) | (274 | ) | |||||||||||||||||||
Corporate | 95 | 120 | (21 | ) | (1,192 | ) | (1,456 | ) | 18 | 202 | (182 | ) | — | ||||||||||||||||||||
Eliminations | (3,850 | ) | (4,457 | ) | 14 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 32,454 | $ | 34,294 | (5 | ) | $ | 7,271 | $ | 7,210 | 1 | $ | 7,621 | $ | 8,067 | (6 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the nine months ended September 30, 2016, intersegment revenues were $264 million for Europe, Middle East & Africa, $50 million for Latin America, $2,978 million for North America, $437 million for Asia Pacific, $116 million for Bottling Investments and $5 million for Corporate. During the nine months ended October 2, 2015, intersegment revenues were $471 million for Europe, Middle East & Africa, $56 million for Latin America, $3,311 million for North America, $476 million for Asia Pacific and $143 million for Bottling Investments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Currency neutral operating results" are determined by dividing or multiplying, as appropriate, our current period actual U.S. dollar operating results, normalizing for certain structural items in hyperinflationary economies, by the current period actual exchange rates (that include the impact of current period currency hedging activities), to derive our current period local currency operating results. We then multiply or divide, as appropriate, the derived current period local currency operating results by the foreign currency exchange rates (that also include the impact of the comparable prior period currency hedging activities) used to translate the Company's financial statements in the comparable prior year period to determine what the current period U.S. dollar operating results would have been if the foreign currency exchange rates had not changed from the comparable prior year period. |
• | "Structural changes" generally refer to acquisitions or dispositions of bottling, distribution or canning operations and the consolidation or deconsolidation of bottling and distribution entities for accounting purposes. During 2016, the Company deconsolidated our South African bottling operations and disposed of its related equity method investment in exchange for equity method investments in Coca-Cola Beverages Africa Limited ("CCBA") and CCBA's South African subsidiary. As part of the transaction, the Company also acquired and licensed several brands. The impacts of the deconsolidation and new equity method investments have been included as a structural change (a component of acquisitions and divestitures) in our analysis of net operating revenues on a consolidated basis as well as for our Europe, Middle East and Africa and Bottling Investments operating segments and equity income on a consolidated basis as well as for our Bottling Investments operating segment. The brands and licenses that the Company acquired impacted the Company’s unit case volume and concentrate sales volume and therefore, in addition to being included as a structural change (a component of acquisitions and divestitures), they are also considered acquired brands. Also in 2016, the Company deconsolidated our German bottling operations as a result of their being merged to create Coca-Cola European Partners ("CCEP"). As a result of the merger transaction, the Company now owns an equity method investment in CCEP. Accordingly, the impact of the deconsolidation and new equity method investment has been included as a structural change (a component of acquisitions and divestitures) in our analysis of net operating revenues on a consolidated basis as well as for our Europe, Middle East and Africa and Bottling Investments operating segments and equity income on a consolidated basis as well as for our Bottling Investments operating segment. During 2016, the Company also changed our funding arrangement with our bottling partners in China, which resulted in a reduction in net operating revenues with an offsetting reduction in direct marketing expense (a component of selling, general and administration expenses). In 2016 and 2015, the Company refranchised bottling territories in North America to certain of its unconsolidated bottling partners. Additionally, in 2015, the Company sold its global energy drink business to Monster Beverage Corporation ("Monster"); acquired Monster's non-energy drink business; acquired an equity interest in Monster; amended its current distribution coordination agreements with Monster to expand into additional territories; and acquired a South African bottler. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Organic revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for the impact of acquisitions, divestitures and structural items, as applicable, as well as the impact of changes in foreign currency exchange rates. Management believes the organic revenue (non-GAAP) growth measure provides users with useful supplemental information regarding the Company's ongoing revenue performance and trends by presenting revenue growth excluding the impact of foreign exchange, as well as the impact of acquisitions, divestitures and structural changes. "Core business organic revenues" (non-GAAP) represents the combined organic revenue performance from the Europe, Middle East and Africa; Latin America; North America; Asia Pacific; and Corporate operating segments offset by intersegment eliminations. Management believes the core business organic revenues (non-GAAP) measure enhances the understanding of the current quarter and year-to-date change in the net operating revenues of the segments of our business that are not significantly impacted by the acquisition and divestiture activity taking place in our Bottling Investments operating segment. The adjustments related to acquisitions, divestitures and structural items for the three and nine months ended September 30, 2016 and October 2, 2015 consisted of the structural changes discussed above. Additionally, during the three and nine months ended September 30, 2016, organic revenues (non-GAAP) were adjusted, both on a consolidated basis and for our Asia Pacific operating segment, for the sales of the Company's newly acquired plant-based protein beverages in China. |
• | "Comparable currency neutral operating margin", "comparable currency neutral income before taxes" and "comparable currency neutral income before taxes (structurally adjusted)" are non-GAAP financial measures that exclude or have otherwise been adjusted for items impacting comparability (discussed further below) and the impact of changes in foreign currency exchange rates. Comparable currency neutral income before taxes (structurally adjusted) (non-GAAP) has also been adjusted for structural changes. Management uses these non-GAAP financial measures to evaluate the Company's performance and make resource allocation decisions. Further, management believes that comparable currency neutral operating margin (non-GAAP) expansion, comparable currency neutral income before taxes (non-GAAP) growth and comparable currency neutral income before taxes (structurally adjusted) (non-GAAP) growth measures enhance its ability to communicate the underlying operating results and provide investors with useful supplemental information to enhance their understanding of the Company's underlying business performance and trends by improving their ability to compare our period-to-period financial results. |
• | "Comparable EPS" and "comparable currency neutral EPS" are non-GAAP financial measures that exclude or have otherwise been adjusted for items impacting comparability (discussed further below). Comparable currency neutral EPS (non-GAAP) has also been adjusted for the impact of changes in foreign currency exchange rates. Management uses these non-GAAP financial measures to evaluate the Company's performance and make resource allocation decisions. Further, management believes the comparable EPS (non-GAAP) and comparable currency neutral EPS (non-GAAP) growth measures enhance its ability to communicate its underlying operating results and provide investors with useful supplemental information to enhance their understanding of the Company's underlying business performance and trends by improving their ability to compare our period-to-period financial results. |
• | "Underlying effective tax rate" is a non-GAAP financial measure that represents the estimated annual effective income tax rate on income before taxes that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Net share repurchases" is a non-GAAP financial measure that reflects the net amount of purchases of stock for treasury after considering proceeds from the issuances of stock, the net change in stock issuance receivables (related to employee stock options exercised but not settled prior to the end of the period) and the net change in treasury stock payables (for treasury shares repurchased but not settled prior to the end of the period). |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 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) | $ | 10,633 | $ | 4,131 | $ | 6,502 | 61.1 | % | $ | 4,009 | $ | 222 | $ | 2,271 | 21.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | ||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (59 | ) | 59 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (77 | ) | 77 | |||||||||||||||||||||||||
Other Items | (7 | ) | 2 | (9 | ) | 2 | (86 | ) | 75 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 10,626 | $ | 4,133 | $ | 6,493 | 61.1 | % | $ | 4,011 | $ | — | $ | 2,482 | 23.4 | % | ||||||||||||||||
Three Months Ended October 2, 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) | $ | 11,427 | $ | 4,577 | $ | 6,850 | 59.9 | % | $ | 4,207 | $ | 264 | $ | 2,379 | 20.8 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (75 | ) | 75 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (141 | ) | 141 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (44 | ) | 44 | |||||||||||||||||||||||||
Other Items | (27 | ) | (93 | ) | 66 | 4 | (4 | ) | 66 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 11,400 | $ | 4,484 | $ | 6,916 | 60.7 | % | $ | 4,211 | $ | — | $ | 2,705 | 23.7 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (7) | (10) | (5) | (5) | (16) | (5) | ||||||||||||||||||||||||||
% Currency Impact | (2) | 0 | (3) | (1) | — | (7) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (5) | (10) | (2) | (3) | — | 2 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (7) | (8) | (6) | (5) | — | (8) | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | 0 | (3) | (1) | — | (5) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (5) | (8) | (3) | (3) | — | (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 September 30, 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) | $ | 182 | $ | 281 | $ | (1,106 | ) | $ | 1,428 | $ | 378 | 26.5 | % | $ | 4 | $ | 1,046 | $ | 0.24 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 59 | 20 | — | 39 | 0.01 | |||||||||||||||||||||||||||||
Equity Investees | — | 14 | — | 14 | 4 | — | 10 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 1,127 | 1,204 | 246 | — | 958 | 0.22 | |||||||||||||||||||||||||||||
Other Items | — | — | — | 75 | (15 | ) | — | 90 | 0.02 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (7 | ) | — | 7 | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 182 | $ | 295 | $ | 21 | $ | 2,780 | $ | 626 | 22.5 | % | $ | 4 | $ | 2,150 | $ | 0.49 | |||||||||||||||||||
Three Months Ended October 2, 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) | $ | 138 | $ | 200 | $ | (871 | ) | $ | 1,725 | $ | 272 | 15.8 | % | $ | 4 | $ | 1,449 | $ | 0.33 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 75 | — | — | 75 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 141 | 49 | — | 92 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | (3 | ) | — | (3 | ) | (1 | ) | — | (2 | ) | — | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 815 | 859 | 291 | — | 568 | 0.13 | |||||||||||||||||||||||||||||
Other Items | — | — | 25 | 91 | 33 | — | 58 | 0.01 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 6 | — | (6 | ) | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 138 | $ | 197 | $ | (31 | ) | $ | 2,888 | $ | 650 | 22.5 | % | $ | 4 | $ | 2,234 | $ | 0.51 | ||||||||||||||||||
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) | 32 | 40 | (27) | (17) | 39 | (9) | (28) | (27) | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 32 | 49 | — | (4) | (4) | (7) | (4) | (3) |
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 as well as the tax impact resulting from the accrual of tax on temporary differences related to the investment in foreign subsidiaries that are now expected to reverse in the foreseeable future. |
2 | 4,364 million average shares outstanding — diluted |
3 | 4,399 million average shares outstanding — diluted |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 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) | $ | 32,454 | $ | 12,671 | $ | 19,783 | 61.0 | % | $ | 11,682 | $ | 830 | $ | 7,271 | 22.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (240 | ) | 240 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (187 | ) | 187 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (207 | ) | 207 | |||||||||||||||||||||||||
Other Items | 25 | 132 | (107 | ) | 15 | (196 | ) | 74 | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 32,479 | $ | 12,803 | $ | 19,676 | 60.6 | % | $ | 11,697 | $ | — | $ | 7,979 | 24.6 | % | ||||||||||||||||
Nine Months Ended October 2, 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) | $ | 34,294 | $ | 13,428 | $ | 20,866 | 60.8 | % | $ | 12,490 | $ | 1,166 | $ | 7,210 | 21.0 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (204 | ) | 204 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (323 | ) | 323 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (427 | ) | 427 | |||||||||||||||||||||||||
Other Items | (42 | ) | (66 | ) | 24 | 33 | (212 | ) | 203 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 34,252 | $ | 13,362 | $ | 20,890 | 61.0 | % | $ | 12,523 | $ | — | $ | 8,367 | 24.4 | % | ||||||||||||||||
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) | (6) | (29) | 1 | ||||||||||||||||||||||||||
% Currency Impact | (3) | (1) | (4) | (2) | — | (9) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (2) | (5) | (1) | (4) | — | 9 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (5) | (4) | (6) | (7) | — | (5) | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (1) | (4) | (2) | — | (7) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (2) | (3) | (2) | (4) | — | 2 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 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) | $ | 485 | $ | 678 | $ | (315 | ) | $ | 7,621 | $ | 1,618 | 21.2 | % | $ | 26 | $ | 5,977 | $ | 1.37 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 240 | — | — | 240 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 187 | 65 | — | 122 | 0.03 | |||||||||||||||||||||||||||||
Equity Investees | — | 35 | — | 35 | 8 | — | 27 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 354 | 561 | 363 | — | 198 | 0.05 | |||||||||||||||||||||||||||||
Other Items | — | — | 40 | 114 | 1 | — | 113 | 0.03 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (84 | ) | — | 84 | 0.02 | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 485 | $ | 713 | $ | 79 | $ | 8,758 | $ | 1,971 | 22.5 | % | $ | 26 | $ | 6,761 | $ | 1.55 | |||||||||||||||||||
Nine Months Ended October 2, 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) | $ | 713 | $ | 402 | $ | 709 | $ | 8,067 | $ | 1,937 | 24.0 | % | $ | 16 | $ | 6,114 | $ | 1.39 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 204 | — | — | 204 | 0.05 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 323 | 124 | — | 199 | 0.05 | |||||||||||||||||||||||||||||
Equity Investees | — | 79 | — | 79 | 5 | — | 74 | 0.02 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (529 | ) | (102 | ) | (173 | ) | — | 71 | 0.02 | ||||||||||||||||||||||||||
Other Items | (320 | ) | — | 113 | 636 | 173 | — | 463 | 0.10 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 6 | — | (6 | ) | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 393 | $ | 481 | $ | 293 | $ | 9,207 | $ | 2,072 | 22.5 | % | $ | 16 | $ | 7,119 | $ | 1.61 | |||||||||||||||||||
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) | (32) | 68 | — | (6) | (16) | 57 | (2) | (1) | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 24 | 48 | (73) | (5) | (5) | 57 | (5) | (4) |
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 as well as the tax impact resulting from the accrual of tax on temporary differences related to the investment in foreign subsidiaries that are now expected to reverse in the foreseeable future. |
2 | 4,374 million average shares outstanding — diluted |
3 | 4,410 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 September 30, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (17) | (27) | |||
% Currency Impact | (7) | (6) | |||
% Change — Currency Neutral (Non-GAAP) | (11) | (21) | |||
% Structural Impact | 0 | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | (10) | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (13) | (24) | |||
% Change — Comparable (Non-GAAP) | (4) | (3) | |||
% Comparable Currency Impact (Non-GAAP) | (3) | (3) | |||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 0 | |||
% Comparable Structural Impact (Non-GAAP) | (2) | — | |||
% Change — Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) | 2 | — | |||
Nine Months Ended September 30, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (6) | (1) | |||
% Currency Impact | (11) | (11) | |||
% Change — Currency Neutral (Non-GAAP) | 5 | 10 | |||
% Structural Impact | (2) | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | 8 | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (1) | 3 | |||
% Change — Comparable (Non-GAAP) | (5) | (4) | |||
% Comparable Currency Impact (Non-GAAP) | (9) | (9) | |||
% Change — Comparable Currency Neutral (Non-GAAP) | 4 | 5 | |||
% Comparable Structural Impact (Non-GAAP) | (3) | — | |||
% Change — Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) | 7 | — | |||
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 September 30, 2016 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,852 | $ | 965 | $ | 2,664 | $ | 1,460 | $ | 4,840 | $ | 47 | $ | (1,195 | ) | $ | 10,633 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (3 | ) | — | — | (4 | ) | — | (7 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,852 | $ | 965 | $ | 2,661 | $ | 1,460 | $ | 4,840 | $ | 43 | $ | (1,195 | ) | $ | 10,626 | |||||||||
Three Months Ended October 2, 2015 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,933 | $ | 1,012 | $ | 2,580 | $ | 1,406 | $ | 5,948 | $ | 55 | $ | (1,507 | ) | $ | 11,427 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (2 | ) | — | — | (25 | ) | — | (27 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,933 | $ | 1,012 | $ | 2,578 | $ | 1,406 | $ | 5,948 | $ | 30 | $ | (1,507 | ) | $ | 11,400 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (4) | (4) | 3 | 4 | (19) | (16) | 21 | (7) | ||||||||||||||||||
% Currency Impact | (2) | (16) | 0 | 4 | (1) | (37) | — | (2) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (2) | 11 | 3 | (1) | (18) | 20 | — | (5) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (3) | 0 | 0 | (1) | (19) | 5 | — | (8) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 2 | 11 | 3 | 0 | 2 | 13 | — | 3 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (4) | 3 | 4 | (19) | 36 | — | (7) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | (16) | 0 | 4 | (1) | (1) | — | (2) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (2) | 11 | 3 | (1) | (18) | 37 | — | (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) | ||||||||||||||||||||||||||
Net Operating Revenues by Segment: | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 5,633 | $ | 2,837 | $ | 7,737 | $ | 4,255 | $ | 15,747 | $ | 95 | $ | (3,850 | ) | $ | 32,454 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (11 | ) | — | — | 36 | — | 25 | |||||||||||||||||
Comparable (Non-GAAP) | $ | 5,633 | $ | 2,837 | $ | 7,726 | $ | 4,255 | $ | 15,747 | $ | 131 | $ | (3,850 | ) | $ | 32,479 | |||||||||
Nine Months Ended October 2, 2015 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 5,876 | $ | 3,051 | $ | 7,548 | $ | 4,292 | $ | 17,864 | $ | 120 | $ | (4,457 | ) | $ | 34,294 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (19 | ) | — | — | (23 | ) | — | (42 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 5,876 | $ | 3,051 | $ | 7,529 | $ | 4,292 | $ | 17,864 | $ | 97 | $ | (4,457 | ) | $ | 34,252 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (4) | (7) | 3 | (1) | (12) | (21) | 14 | (5) | ||||||||||||||||||
% Currency Impact | (3) | (20) | 0 | 1 | (2) | (46) | — | (3) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (1) | 13 | 3 | (2) | (10) | 25 | — | (2) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (3) | 0 | 0 | (2) | (10) | 14 | — | (5) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 2 | 13 | 3 | 0 | 0 | 10 | — | 2 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (7) | 3 | (1) | (12) | 34 | — | (5) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (20) | 0 | 1 | (2) | 3 | — | (3) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 13 | 3 | (2) | (10) | 31 | — | (2) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Business Revenues: 1 | |||||
Three Months Ended September 30, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 10,633 | |||
Bottling Investments Net Operating Revenues | (4,840 | ) | |||
Consolidated Eliminations | 1,195 | ||||
Intersegment Core Net Operating Revenue Eliminations | — | ||||
Core Business Revenues (Non-GAAP) | 6,988 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (7 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,981 | |||
Three Months Ended October 2, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 11,427 | |||
Bottling Investments Net Operating Revenues | (5,948 | ) | |||
Consolidated Eliminations | 1,507 | ||||
Intersegment Core Net Operating Revenue Eliminations | (1 | ) | |||
Core Business Revenues (Non-GAAP) | 6,985 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (27 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,958 | |||
% Change — Reported (GAAP) Net Operating Revenues | (7) | ||||
% Change — Core Business Revenues (Non-GAAP) | 0 | ||||
% Core Business Currency Impact (Non-GAAP) | (2) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 2 | ||||
% Acquisitions, Divestitures and Structural Items | (1) | ||||
% Change — Core Business Organic Revenues (Non-GAAP)2 | 3 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | 0 | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | (2) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (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 business revenues included the net operating revenues from the Europe, Middle East & Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $1 million during the three months ended October 2, 2015. |
2 | Core business organic revenue growth included 2 points of positive price/mix. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Business Revenues: 1 | |||||
Nine Months Ended September 30, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 32,454 | |||
Bottling Investments Net Operating Revenues | (15,747 | ) | |||
Consolidated Eliminations | 3,850 | ||||
Intersegment Core Net Operating Revenue Eliminations | (13 | ) | |||
Core Business Revenues (Non-GAAP) | 20,544 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | 25 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 20,569 | |||
Nine Months Ended October 2, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 34,294 | |||
Bottling Investments Net Operating Revenues | (17,864 | ) | |||
Consolidated Eliminations | 4,457 | ||||
Intersegment Core Net Operating Revenue Eliminations | (8 | ) | |||
Core Business Revenues (Non-GAAP) | 20,879 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (42 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 20,837 | |||
% Change — Reported (GAAP) Net Operating Revenues | (5) | ||||
% Change — Core Business Revenues (Non-GAAP) | (2) | ||||
% Core Business Currency Impact (Non-GAAP) | (4) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 2 | ||||
% Acquisitions, Divestitures and Structural Items | (1) | ||||
% Change — Core Business Organic Revenues (Non-GAAP)2 | 4 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | (1) | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | (4) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (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 business revenues included the net operating revenues from the Europe, Middle East & Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $13 million and $8 million during the nine months ended September 30, 2016 and October 2, 2015, respectively. |
2 | Core business 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 September 30, 2016 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 914 | $ | 435 | $ | 666 | $ | 583 | $ | 124 | $ | (451 | ) | $ | 2,271 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | ||||||||||||||||
Productivity & Reinvestment | 2 | (1 | ) | 22 | — | 22 | 14 | 59 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 73 | 4 | 77 | ||||||||||||||||
Other Items | — | 76 | 11 | — | (15 | ) | 3 | 75 | |||||||||||||||
Comparable (Non-GAAP) | $ | 916 | $ | 510 | $ | 699 | $ | 583 | $ | 204 | $ | (430 | ) | $ | 2,482 | ||||||||
Three Months Ended October 2, 2015 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 930 | $ | 538 | $ | 585 | $ | 571 | $ | 85 | $ | (330 | ) | $ | 2,379 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 75 | — | 75 | ||||||||||||||||
Productivity & Reinvestment | (1 | ) | 4 | 31 | 2 | 76 | 29 | 141 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 44 | 44 | ||||||||||||||||
Other Items | — | — | 40 | — | 47 | (21 | ) | 66 | |||||||||||||||
Comparable (Non-GAAP) | $ | 929 | $ | 542 | $ | 656 | $ | 573 | $ | 283 | $ | (278 | ) | $ | 2,705 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | (2) | (19) | 14 | 2 | 46 | (37) | (5) | ||||||||||||||||
% Currency Impact | (3) | (24) | 0 | 4 | (3) | (6) | (7) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 1 | 5 | 14 | (1) | 48 | (31) | 2 | ||||||||||||||||
% Change — Comparable (Non-GAAP) | (1) | (6) | 7 | 2 | (28) | (55) | (8) | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (24) | 0 | 4 | (1) | 1 | (5) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 1 | 18 | 7 | (2) | (27) | (56) | (3) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 2,897 | $ | 1,470 | $ | 1,982 | $ | 1,892 | $ | 222 | $ | (1,192 | ) | $ | 7,271 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 240 | — | 240 | ||||||||||||||||
Productivity & Reinvestment | 6 | (2 | ) | 80 | 1 | 60 | 42 | 187 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 178 | 29 | 207 | ||||||||||||||||
Other Items | — | 76 | (31 | ) | — | (120 | ) | 149 | 74 | ||||||||||||||
Comparable (Non-GAAP) | $ | 2,903 | $ | 1,544 | $ | 2,031 | $ | 1,893 | $ | 580 | $ | (972 | ) | $ | 7,979 | ||||||||
Nine Months Ended October 2, 2015 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 3,036 | $ | 1,641 | $ | 1,874 | $ | 1,876 | $ | 239 | $ | (1,456 | ) | $ | 7,210 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 204 | — | 204 | ||||||||||||||||
Productivity & Reinvestment | 3 | 7 | 104 | (1 | ) | 157 | 53 | 323 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 427 | 427 | ||||||||||||||||
Other Items | — | 33 | (10 | ) | 2 | 24 | 154 | 203 | |||||||||||||||
Comparable (Non-GAAP) | $ | 3,039 | $ | 1,681 | $ | 1,968 | $ | 1,877 | $ | 624 | $ | (822 | ) | $ | 8,367 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | (5) | (10) | 6 | 1 | (7) | 18 | 1 | ||||||||||||||||
% Currency Impact | (3) | (28) | 0 | (1) | (1) | (4) | (9) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (1) | 18 | 5 | 1 | (6) | 22 | 9 | ||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (8) | 3 | 1 | (7) | (18) | (5) | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (27) | 0 | (1) | (2) | 1 | (7) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 19 | 3 | 1 | (6) | (19) | 2 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 922 | $ | 447 | $ | 653 | $ | 589 | $ | (734 | ) | $ | (449 | ) | $ | 1,428 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | ||||||||||||||||||||||
Productivity & Reinvestment | 2 | (1 | ) | 22 | — | 22 | 14 | 59 | |||||||||||||||||||||
Equity Investees | — | — | — | — | 14 | — | 14 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 17 | — | 1,162 | 25 | 1,204 | ||||||||||||||||||||||
Other Items | — | 76 | 11 | — | (15 | ) | 3 | 75 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 924 | $ | 522 | $ | 703 | $ | 589 | $ | 449 | $ | (407 | ) | $ | 2,780 | ||||||||||||||
Three Months Ended October 2, 2015 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 945 | $ | 535 | $ | 581 | $ | 576 | $ | (547 | ) | $ | (365 | ) | $ | 1,725 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 75 | — | 75 | ||||||||||||||||||||||
Productivity & Reinvestment | (1 | ) | 4 | 31 | 2 | 76 | 29 | 141 | |||||||||||||||||||||
Equity Investees | (3 | ) | — | — | — | — | — | (3 | ) | ||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 794 | 65 | 859 | ||||||||||||||||||||||
Other Items | — | — | 40 | — | 47 | 4 | 91 | ||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 941 | $ | 539 | $ | 652 | $ | 578 | $ | 445 | $ | (267 | ) | $ | 2,888 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | (2) | (16) | 12 | 2 | (34) | (23) | (17) | ||||||||||||||||||||||
% Currency Impact | (2) | (24) | 0 | 3 | 0 | 6 | (7) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 0 | 8 | 13 | (1) | (34) | (29) | (11) | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | (13) | 5 | 0 | (35) | 29 | (13) | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (2) | (3) | 8 | 2 | 1 | (52) | (4) | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | (24) | 0 | 3 | 0 | 16 | (3) | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 1 | 21 | 8 | (1) | 1 | (67) | (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) | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 2,950 | $ | 1,485 | $ | 1,978 | $ | 1,903 | $ | (897 | ) | $ | 202 | $ | 7,621 | ||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 240 | — | 240 | ||||||||||||||||||||||
Productivity & Reinvestment | 6 | (2 | ) | 80 | 1 | 60 | 42 | 187 | |||||||||||||||||||||
Equity Investees | — | — | — | — | 32 | 3 | 35 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 17 | — | 1,835 | (1,291 | ) | 561 | |||||||||||||||||||||
Other Items | — | 76 | (31 | ) | — | (120 | ) | 189 | 114 | ||||||||||||||||||||
Comparable (Non-GAAP) | $ | 2,956 | $ | 1,559 | $ | 2,044 | $ | 1,904 | $ | 1,150 | $ | (855 | ) | $ | 8,758 | ||||||||||||||
Nine Months Ended October 2, 2015 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 3,085 | $ | 1,649 | $ | 1,865 | $ | 1,890 | $ | (240 | ) | $ | (182 | ) | $ | 8,067 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 204 | — | 204 | ||||||||||||||||||||||
Productivity & Reinvestment | 3 | 7 | 104 | (1 | ) | 157 | 53 | 323 | |||||||||||||||||||||
Equity Investees | 3 | — | — | — | 76 | — | 79 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 827 | (929 | ) | (102 | ) | ||||||||||||||||||||
Other Items | — | 33 | (10 | ) | 2 | 24 | 587 | 636 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 3,091 | $ | 1,689 | $ | 1,959 | $ | 1,891 | $ | 1,048 | $ | (471 | ) | $ | 9,207 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | (4) | (10) | 6 | 1 | (274) | — | (6) | ||||||||||||||||||||||
% Currency Impact | (3) | (28) | 0 | (1) | (11) | — | (11) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (1) | 18 | 6 | 1 | (263) | — | 5 | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | (2) | 2 | 0 | (284) | 292 | (1) | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (8) | 4 | 1 | 10 | (81) | (5) | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (27) | 0 | (1) | (3) | (50) | (9) | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 20 | 4 | 1 | 13 | (31) | 4 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||
(UNAUDITED) | |||||||
Operating Expense Leverage: | |||||||
Three Months Ended September 30, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (5) | (5) | 1 | ||||
% Change — Currency Neutral (Non-GAAP) | 2 | (2) | 4 | ||||
% Change — Comparable (Non-GAAP) | (8) | (6) | (2) | ||||
% Change — Comparable Currency Neutral (Non-GAAP) | (3) | (3) | 0 | ||||
Nine Months Ended September 30, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | 1 | (5) | 6 | ||||
% Change — Currency Neutral (Non-GAAP) | 9 | (1) | 10 | ||||
% Change — Comparable (Non-GAAP) | (5) | (6) | 1 | ||||
% Change — Comparable Currency Neutral (Non-GAAP) | 2 | (2) | 4 |
Note: | Certain rows may not add due to rounding. |
Operating Margin: | ||||||
Three Months Ended September 30, 2016 | Three Months Ended October 2, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 21.36 | % | 20.81 | % | 55 | |
Items Impacting Comparability (Non-GAAP) | (2.00 | )% | (2.92 | )% | ||
Comparable Operating Margin (Non-GAAP) | 23.36 | % | 23.73 | % | (37 | ) |
Comparable Currency Impact (Non-GAAP) | (0.88 | )% | 0.00 | % | ||
Comparable Currency Neutral Operating Margin (Non-GAAP) | 24.24 | % | 23.73 | % | 51 | |
Nine Months Ended September 30, 2016 | Nine Months Ended October 2, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 22.40 | % | 21.02 | % | 138 | |
Items Impacting Comparability (Non-GAAP) | (2.17 | )% | (3.41 | )% | ||
Comparable Operating Margin (Non-GAAP) | 24.57 | % | 24.43 | % | 14 | |
Comparable Currency Impact (Non-GAAP) | (0.97 | )% | 0.00 | % | ||
Comparable Currency Neutral Operating Margin (Non-GAAP) | 25.54 | % | 24.43 | % | 111 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Nine Months Ended September 30, 2016 | Nine Months Ended October 2, 2015 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,295 | $ | 732 | ||||||
Purchases of Stock for Treasury | (2,509 | ) | (1,966 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (2 | ) | 16 | |||||||
Net Change in Treasury Stock Payables2 | 12 | (37 | ) | |||||||
Net Share Repurchases (Non-GAAP) | $ | (1,204 | ) | $ | (1,255 | ) |
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: | ||||||||||
Nine Months Ended September 30, 2016 | Nine Months Ended October 2, 2015 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP) | $ | 6,723 | $ | 8,390 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments for Pension Plan Contributions | 471 | — | ||||||||
Comparable (Non-GAAP) | $ | 7,194 | $ | 8,390 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | (20) | |||||||||
% Change — Comparable (Non-GAAP) | (14) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |