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• | Net Revenues Declined 6% for the Quarter and 5% for the Full Year, which Included a Combined |
• | Organic Revenues (Non-GAAP) Grew 6% for the Quarter and 3% for the Full Year |
• | Price/Mix Grew 6% for the Quarter and 3% for the Full Year |
• | Operating Margin Expanded More than 90 Basis Points for the Full Year and Comparable Currency |
• | Fourth Quarter EPS of $0.13 and Comparable EPS (Non-GAAP) of $0.37 |
• | Company Provides 2017 Financial Outlook |
Highlights |
Quarterly / Full Year Performance |
• | Net revenues were $9.4 billion for the quarter, a 6% decline from prior year, impacted by a foreign currency exchange headwind of 2% and a headwind from acquisitions, divestitures, and structural items of 10%. Organic revenues (non-GAAP) grew 6% in the quarter, driven by price/mix growth of 6%. Core business organic revenues (non-GAAP) grew 7% in the quarter. |
• | Net revenues were $41.9 billion for the full year, a 5% decline from the prior year, impacted by a foreign currency exchange headwind of 3% and a headwind from acquisitions, divestitures, and structural items of 6%. Organic revenues (non-GAAP) for the full year grew 3%, driven by price/mix growth of 3%. Core business organic revenues (non-GAAP) grew 4% for the full year. |
• | We gained global value share in total nonalcoholic ready-to-drink ("NARTD") beverages and sparkling beverages in both the quarter and the full year. |
• | Total unit case volume declined 1% for the quarter and grew 1% for the full year. For the quarter, low single-digit unit case volume growth in our developed markets was offset by continued macroeconomic challenges in several Latin American markets. North America grew unit case volume 1% in the quarter, including 1% growth in sparkling beverages. For the full year, our developed markets grew low single digits while our emerging and developing markets were even. |
• | Our operating margin for the quarter contracted nearly 80 basis points and our operating margin for the full year expanded more than 90 basis points. These measures included items impacting comparability, the impact of changes in foreign currency exchange rates, and structural impacts. Our comparable currency neutral operating margin (non-GAAP) in the quarter expanded nearly 230 basis points and expanded nearly 140 basis points for the full year. These improvements were driven by continued extensions of our pricing initiatives, a slightly favorable cost environment, and our productivity program. |
Company Updates |
• | Disciplined brand and growth investments: We advanced our strategy to grow revenues and profits from our sparkling beverage portfolio while at the same time helping consumers reduce consumption of added sugars. In Western Europe, Coca-Cola Zero Sugar once again grew unit case volume double digits in the quarter, boosted by expansion into France, Belgium, Netherlands, and Ireland. These recent moves extend the product beyond its initial launch market of Great Britain. Further expansion is planned in early 2017 for other European markets, Australia, and South Africa, among others. In addition to these moves in our sparkling portfolio, we continued the global expansion of smartwater, one of our premium water brands. While smartwater achieved double-digit unit case volume growth during the year |
• | Innovating in different ways: Portfolio innovations in the quarter extended beyond ongoing product and reformulation initiatives. Sparkling beverage performance in Japan kept its momentum in the quarter, boosted by the Coca-Cola ribbon package innovation that was made available in the market during November and December. This festive bottle for Trademark Coca-Cola brands in Japan provided consumers with a label that could be transformed into a holiday bow. Coffee in Japan also continued to grow, driven by the bottle-can package innovation for GEORGIA The Premium launched in early 2016. In our Central & Eastern Europe business unit, the launch of a new Fanta spiral bottle led to full year mid single-digit unit case volume growth for the brand and helped drive a value share gain in sparkling beverages for the full year. |
• | Strengthening the global bottling system: We remain on track to complete the refranchising of our Company-owned bottling operations in the United States by the end of 2017. In China, we signed a definitive agreement with COFCO Coca-Cola Beverages Limited and Swire Beverages Holdings Limited to refranchise all existing Company-owned bottling operations. We also reached an important agreement in the evolution of Coca-Cola Beverages Africa ("CCBA") regarding the transition of Anheuser-Busch InBev's 54.5% stake in CCBA as well as its interests in other African and Latin American bottling operations. |
• | Planning a seamless leadership transition: In December, the Board of Directors unanimously approved Chairman and Chief Executive Officer Muhtar Kent's recommendation for Company veteran James Quincey to become the next CEO, effective May 1, 2017. Kent will continue as Chairman of the Board of Directors following the CEO succession. The Board intends to nominate Quincey to stand for election as a director at the 2017 Annual Meeting of Shareowners in April. |
• | Advancing sustainable business practices: We continued to advance sustainability investments around the world. During the quarter, we announced a combined pledge with the U.S. Agency for International Development (USAID) of up to $22 million to support the next five-year phase of USAID's Water and Development Alliance (WADA). This initiative aims to provide safe water access and sanitation to communities in developing nations in Africa, the Middle East, Asia, and Latin America. During the first phase of this partnership from 2005 to 2017, 35 projects were implemented in 30 different countries. By the end of 2015, these projects had yielded improved water access to over 600,000 people and improved sanitation for over 250,000 people. |
Operating Review – Three Months Ended December 31, 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 | 0 | 6 | (2) | (10) | (6) | 6 | (1) | ||
Europe, Middle East & Africa 3 | 5 | 0 | (2) | (6) | (4) | 5 | 1 | ||
Latin America | (5) | 15 | (14) | 0 | (4) | 10 | (4) | ||
North America | 4 | 5 | 0 | 0 | 8 | 8 | 1 | ||
Asia Pacific | (2) | 9 | 4 | (3) | 8 | 7 | 0 | ||
Bottling Investments | 3 | 0 | 0 | (23) | (20) | 3 | (25) |
Percent Change | Reported Income Before Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Impact | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | (67) | (61) | (11) | 6 | (7) | 14 |
Europe, Middle East & Africa 3 | (5) | (4) | (2) | 2 | ||
Latin America | (7) | 0 | (24) | 17 | ||
North America | 18 | 3 | (1) | 16 | ||
Asia Pacific | 6 | 1 | 1 | 3 | ||
Bottling Investments | (447) | (449) | 1 | 0 | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | (55) | (51) | (11) | 7 |
Operating Results – Year Ended December 31, 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 | 3 | (3) | (6) | (5) | 3 | 1 | ||
Europe, Middle East & Africa 3 | 0 | 2 | (3) | (4) | (4) | 3 | 1 | ||
Latin America | (1) | 13 | (18) | 0 | (6) | 12 | (1) | ||
North America | 1 | 3 | 0 | 0 | 4 | 4 | 1 | ||
Asia Pacific | 3 | (2) | 1 | (2) | 1 | 1 | 2 | ||
Bottling Investments | 0 | 1 | (1) | (13) | (14) | 1 | (16) |
Percent Change | Reported Income Before Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Impact | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | (15) | (10) | (9) | 4 | (3) | 8 |
Europe, Middle East & Africa 3 | (4) | (1) | (3) | (1) | ||
Latin America | (9) | (2) | (26) | 19 | ||
North America | 9 | 2 | 0 | 7 | ||
Asia Pacific | 1 | 0 | 0 | 2 | ||
Bottling Investments | (350) | (358) | (2) | 11 | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | (10) | (6) | (9) | 5 |
Consolidated |
• | Positive price/mix in the quarter included 2 points of positive segment mix, primarily driven by Latin America. Segment mix did not have a significant impact on the full year positive price/mix. |
• | Sparkling beverage unit case volume declined 2% for the quarter and was even for the full year. Still beverage unit case volume grew 2% for the quarter and 3% for the full year. |
• | The decline in income before taxes for both the quarter and the full year included items impacting comparability, primarily due to the derecognition of intangible assets associated with the refranchising of bottling territories in North America. The decline was also impacted by changes in foreign currency exchange rates and structural items. Comparable currency neutral income before taxes (structurally adjusted) (non-GAAP) for both the quarter and the full year benefited from the impact of our productivity initiatives and an increase in equity income, partially offset by a swing from net interest income to net interest expense. |
• | Cash from operations for the full year was $8.8 billion, down $1.7 billion. This decrease was driven by fluctuations in foreign currency exchange rates and our ongoing refranchising of North America bottling territories as well as bottling transactions in Europe and Africa. |
• | Purchases of stock for treasury for the full year were $3.7 billion. Net share repurchases (non-GAAP) totaled $2.3 billion for the full year. |
Europe, Middle East & Africa |
• | Even price/mix for the quarter included 1 point of unfavorable geographic mix. Positive price/mix for the full year included 1 point of favorable geographic mix. Acquisitions, divestitures, and structural items for the quarter and the full year reflect the impact of bottling transactions in Europe and Africa. |
• | The decline in income before taxes for both the quarter and the full year included the impact of changes in foreign currency exchange rates and structural items. Comparable currency neutral income before taxes (non-GAAP) for both the quarter and the full year included the unfavorable impact of bottling transactions in Europe and Africa. |
• | We gained value share in still beverages during the quarter. Unit case volume growth of 1% for both the quarter and the full year included 1 point of growth from acquired brands, which were primarily water brands in Africa. For the full year, sparkling beverage volume was even and still beverage volume grew 3%. Unit case volume growth for the year in our West Africa and Middle East & North Africa business units was partially offset by a decline in our Central & Eastern Europe business unit, which was primarily driven by a unit case volume decline in Russia. |
Latin America |
• | Positive price/mix for the quarter and for the full year benefited from solid performance in Mexico and several inflationary markets across Latin America. |
• | We gained value share in total NARTD beverages, sparkling beverages and still beverages during the quarter. For the full year, sparkling beverage volume declined 2% and still beverage volume grew 2%. The total unit case volume decline of 1% for the year was driven by high single-digit declines in both |
North America |
• | Positive price/mix for the quarter and for the full year reflects the continued execution of disciplined occasion, brand, price, and package strategy. Sparkling beverage price/mix grew 4% for the quarter and 3% for the full year. |
• | Income before taxes for both the quarter and the full year included items impacting comparability and structural impacts. Comparable currency neutral income before taxes (non-GAAP) for the quarter was favorably impacted by the ongoing refranchising in North America. |
• | We gained value share in total NARTD beverages for the 27th consecutive quarter. For the full year, 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. Full year still beverage volume grew 3%, primarily driven by growth in water which included double-digit growth in smartwater. Volume in the dairy category grew double digits and vitaminwater grew mid single digits. |
Asia Pacific |
• | Positive price/mix for the quarter included 1 point of favorable geographic mix. Geographic mix did not have a significant impact on the negative price/mix for the full year. |
• | We gained value share in sparkling beverages during the quarter. For the full year, sparkling beverage volume growth was slightly positive, rounding to even. Full year still beverage volume grew 5%. Unit case volume growth for the full year included mid single-digit growth in our ASEAN business unit and low single-digit growth in our Japan business unit, partially offset by a low single-digit decline in our Greater China & Korea business unit. |
Bottling Investments |
• | Full year positive price/mix reflects solid performance across several of our key bottling operations, particularly North America and India. |
• | The decline in income before taxes for both the quarter and the full year included items impacting comparability and structural impacts. For both the quarter and the full year, 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. For the full year, comparable currency neutral income before taxes (non-GAAP) also included a favorable impact from the expanded distribution of Monster Beverage Corporation products. |
Outlook |
• | Approximately 3% growth in organic revenues (non-GAAP) |
• | 7% to 8% growth in comparable currency neutral income before taxes (structurally adjusted) (non-GAAP), driven by strong operating performance partially offset by an increasing interest rate environment |
• | Net revenues: 1% to 2% headwind based on the current spot rates and including the impact of hedged positions |
• | Income before taxes: 3% to 4% headwind based on the current spot rates and including the impact of hedged positions |
• | Net revenues: 18% to 19% headwind from acquisitions, divestitures, and structural items |
• | Income before taxes: 5% to 6% structural headwind |
• | Underlying effective tax rate (non-GAAP): 24%* |
• | Net share repurchases (non-GAAP): Approximately $2.0 billion |
• | Net capital expenditures: $2.0 billion to $2.5 billion |
• | Net revenues: 12% to 13% 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: 1% to 2% structural headwind; 3% to 4% currency headwind based on the current spot rates and including the impact of hedged positions |
• | Two fewer days when compared to first quarter 2016 |
• | Net revenues: 16% to 17% headwind from acquisitions, divestitures, and structural items |
• | Income before taxes: 1% to 2% structural headwind; low single-digit currency headwind based on the current spot rates and including the impact of hedged positions |
• | Underlying effective tax rate (non-GAAP): 26%* |
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 for the fourth quarter, unless otherwise noted, and are computed on a reported basis for the full year. "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. |
• | "Price, product, and geographic mix" represents the change in revenues caused by factors such as price changes, the mix of products and packages sold, and the mix of channels and geographic territories in which sales occurred. |
• | "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 and fourth quarter 2016 financial results were 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 | ||||||||||
December 31, 2016 | December 31, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 9,409 | $ | 10,000 | (6 | ) | ||||
Cost of goods sold | 3,794 | 4,054 | (6 | ) | ||||||
Gross Profit | 5,615 | 5,946 | (6 | ) | ||||||
Selling, general and administrative expenses | 3,580 | 3,937 | (9 | ) | ||||||
Other operating charges | 680 | 491 | 39 | |||||||
Operating Income | 1,355 | 1,518 | (11 | ) | ||||||
Interest income | 170 | 154 | 10 | |||||||
Interest expense | 248 | 143 | 73 | |||||||
Equity income (loss) — net | 157 | 87 | 82 | |||||||
Other income (loss) — net | (919 | ) | (78 | ) | — | |||||
Income Before Income Taxes | 515 | 1,538 | (67 | ) | ||||||
Income taxes | (32 | ) | 302 | — | ||||||
Consolidated Net Income | 547 | 1,236 | (56 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | (3 | ) | (1 | ) | (358 | ) | ||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 550 | $ | 1,237 | (56 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.13 | $ | 0.28 | (55 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,345 | 4,390 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended December 31, 2016 and December 31, 2015, basic net income per share was $0.13 for 2016 and $0.29 for 2015 based on average shares outstanding — basic of 4,303 million for 2016 and 4,336 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) | ||||||||||
Year Ended | ||||||||||
December 31, 2016 | December 31, 2015 | % Change1 | ||||||||
Net Operating Revenues | $ | 41,863 | $ | 44,294 | (5 | ) | ||||
Cost of goods sold | 16,465 | 17,482 | (6 | ) | ||||||
Gross Profit | 25,398 | 26,812 | (5 | ) | ||||||
Selling, general and administrative expenses | 15,262 | 16,427 | (7 | ) | ||||||
Other operating charges | 1,510 | 1,657 | (9 | ) | ||||||
Operating Income | 8,626 | 8,728 | (1 | ) | ||||||
Interest income | 642 | 613 | 5 | |||||||
Interest expense | 733 | 856 | (14 | ) | ||||||
Equity income (loss) — net | 835 | 489 | 71 | |||||||
Other income (loss) — net | (1,234 | ) | 631 | — | ||||||
Income Before Income Taxes | 8,136 | 9,605 | (15 | ) | ||||||
Income taxes | 1,586 | 2,239 | (29 | ) | ||||||
Consolidated Net Income | 6,550 | 7,366 | (11 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 23 | 15 | 45 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 6,527 | $ | 7,351 | (11 | ) | ||||
Diluted Net Income Per Share2 | $ | 1.49 | $ | 1.67 | (10 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,367 | 4,405 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the years ended December 31, 2016 and December 31, 2015, basic net income per share was $1.51 for 2016 and $1.69 for 2015 based on average shares outstanding — basic of 4,317 million for 2016 and 4,352 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) | |||||||
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 8,555 | $ | 7,309 | |||
Short-term investments | 9,595 | 8,322 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 18,150 | 15,631 | |||||
Marketable securities | 4,051 | 4,269 | |||||
Trade accounts receivable, less allowances of $466 and $352, respectively | 3,856 | 3,941 | |||||
Inventories | 2,675 | 2,902 | |||||
Prepaid expenses and other assets | 2,481 | 2,752 | |||||
Assets held for sale | 2,797 | 3,900 | |||||
Total Current Assets | 34,010 | 33,395 | |||||
Equity Method Investments | 16,260 | 12,318 | |||||
Other Investments | 989 | 3,470 | |||||
Other Assets | 4,248 | 4,110 | |||||
Property, Plant and Equipment — net | 10,635 | 12,571 | |||||
Trademarks With Indefinite Lives | 6,097 | 5,989 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 3,676 | 6,000 | |||||
Goodwill | 10,629 | 11,289 | |||||
Other Intangible Assets | 726 | 854 | |||||
Total Assets | $ | 87,270 | $ | 89,996 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 9,490 | $ | 9,660 | |||
Loans and notes payable | 12,498 | 13,129 | |||||
Current maturities of long-term debt | 3,527 | 2,676 | |||||
Accrued income taxes | 307 | 331 | |||||
Liabilities held for sale | 710 | 1,133 | |||||
Total Current Liabilities | 26,532 | 26,929 | |||||
Long-Term Debt | 29,684 | 28,311 | |||||
Other Liabilities | 4,081 | 4,301 | |||||
Deferred Income Taxes | 3,753 | 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 | 14,993 | 14,016 | |||||
Reinvested earnings | 65,502 | 65,018 | |||||
Accumulated other comprehensive income (loss) | (11,205 | ) | (10,174 | ) | |||
Treasury stock, at cost — 2,752 and 2,716 shares, respectively | (47,988 | ) | (45,066 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 23,062 | 25,554 | |||||
Equity Attributable to Noncontrolling Interests | 158 | 210 | |||||
Total Equity | 23,220 | 25,764 | |||||
Total Liabilities and Equity | $ | 87,270 | $ | 89,996 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Year Ended | |||||||
December 31, 2016 | December 31, 2015 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 6,550 | $ | 7,366 | |||
Depreciation and amortization | 1,787 | 1,970 | |||||
Stock-based compensation expense | 258 | 236 | |||||
Deferred income taxes | (856 | ) | 73 | ||||
Equity (income) loss — net of dividends | (449 | ) | (122 | ) | |||
Foreign currency adjustments | 158 | (137 | ) | ||||
Significant (gains) losses on sales of assets — net | 1,146 | (374 | ) | ||||
Other operating charges | 647 | 929 | |||||
Other items | (224 | ) | 744 | ||||
Net change in operating assets and liabilities | (221 | ) | (157 | ) | |||
Net cash provided by operating activities | 8,796 | 10,528 | |||||
Investing Activities | |||||||
Purchases of investments | (15,499 | ) | (15,831 | ) | |||
Proceeds from disposals of investments | 16,624 | 14,079 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (838 | ) | (2,491 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 1,035 | 565 | |||||
Purchases of property, plant and equipment | (2,262 | ) | (2,553 | ) | |||
Proceeds from disposals of property, plant and equipment | 150 | 85 | |||||
Other investing activities | (209 | ) | (40 | ) | |||
Net cash provided by (used in) investing activities | (999 | ) | (6,186 | ) | |||
Financing Activities | |||||||
Issuances of debt | 27,281 | 40,434 | |||||
Payments of debt | (25,615 | ) | (37,738 | ) | |||
Issuances of stock | 1,434 | 1,245 | |||||
Purchases of stock for treasury | (3,681 | ) | (3,564 | ) | |||
Dividends | (6,043 | ) | (5,741 | ) | |||
Other financing activities | 79 | 251 | |||||
Net cash provided by (used in) financing activities | (6,545 | ) | (5,113 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (6 | ) | (878 | ) | |||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the year | 1,246 | (1,649 | ) | ||||
Balance at beginning of year | 7,309 | 8,958 | |||||
Balance at end of year | $ | 8,555 | $ | 7,309 |
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 | |||||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,645 | $ | 1,711 | (4 | ) | $ | 779 | $ | 839 | (7 | ) | $ | 799 | $ | 838 | (5 | ) | |||||||||||||||
Latin America | 982 | 1,023 | (4 | ) | 481 | 528 | (9 | ) | 481 | 515 | (7 | ) | |||||||||||||||||||||
North America | 2,473 | 2,292 | 8 | 600 | 492 | 22 | 582 | 491 | 18 | ||||||||||||||||||||||||
Asia Pacific | 1,039 | 960 | 8 | 332 | 313 | 6 | 335 | 317 | 6 | ||||||||||||||||||||||||
Bottling Investments | 4,138 | 5,199 | (20 | ) | (359 | ) | (115 | ) | (212 | ) | (1,026 | ) | (187 | ) | (447 | ) | |||||||||||||||||
Corporate | 37 | 46 | (20 | ) | (478 | ) | (539 | ) | 11 | (656 | ) | (436 | ) | (50 | ) | ||||||||||||||||||
Eliminations | (905 | ) | (1,231 | ) | 27 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 9,409 | $ | 10,000 | (6 | ) | $ | 1,355 | $ | 1,518 | (11 | ) | $ | 515 | $ | 1,538 | (67 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the three months ended December 31, 2016, intersegment revenues were $23 million for Latin America, $795 million for North America, $69 million for Asia Pacific and $18 million for Bottling Investments. During the three months ended December 31, 2015, intersegment revenues were $150 million for Europe, Middle East & Africa, $19 million for Latin America, $948 million for North America, $69 million for Asia Pacific, $35 million for Bottling Investments and $10 million for Corporate. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues 1 | Operating Income (Loss) | Income (Loss) Before Income Taxes | |||||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | December 31, 2016 | December 31, 2015 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 7,278 | $ | 7,587 | (4 | ) | $ | 3,676 | $ | 3,875 | (5 | ) | $ | 3,749 | $ | 3,923 | (4 | ) | |||||||||||||||
Latin America | 3,819 | 4,074 | (6 | ) | 1,951 | 2,169 | (10 | ) | 1,966 | 2,164 | (9 | ) | |||||||||||||||||||||
North America | 10,210 | 9,840 | 4 | 2,582 | 2,366 | 9 | 2,560 | 2,356 | 9 | ||||||||||||||||||||||||
Asia Pacific | 5,294 | 5,252 | 1 | 2,224 | 2,189 | 2 | 2,238 | 2,207 | 1 | ||||||||||||||||||||||||
Bottling Investments | 19,885 | 23,063 | (14 | ) | (137 | ) | 124 | — | (1,923 | ) | (427 | ) | (350 | ) | |||||||||||||||||||
Corporate | 132 | 166 | (21 | ) | (1,670 | ) | (1,995 | ) | 16 | (454 | ) | (618 | ) | 27 | |||||||||||||||||||
Eliminations | (4,755 | ) | (5,688 | ) | 16 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 41,863 | $ | 44,294 | (5 | ) | $ | 8,626 | $ | 8,728 | (1 | ) | $ | 8,136 | $ | 9,605 | (15 | ) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
1 | During the year ended December 31, 2016, intersegment revenues were $264 million for Europe, Middle East & Africa, $73 million for Latin America, $3,773 million for North America, $506 million for Asia Pacific, $134 million for Bottling Investments and $5 million for Corporate. During the year ended December 31, 2015, intersegment revenues were $621 million for Europe, Middle East & Africa, $75 million for Latin America, $4,259 million for North America, $545 million for Asia Pacific, $178 million for Bottling Investments and $10 million for Corporate. |
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 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, 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 plc ("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 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 full year 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 months and years ended December 31, 2016 and December 31, 2015 consisted of the structural changes discussed above. Additionally, during the three months and year ended December 31, 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 the 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 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. |
• | "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 December 31, 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) | $ | 9,409 | $ | 3,794 | $ | 5,615 | 59.7 | % | $ | 3,580 | $ | 680 | $ | 1,355 | 14.4 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (153 | ) | 153 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (165 | ) | 165 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (249 | ) | 249 | |||||||||||||||||||||||||
Other Items | (34 | ) | 16 | (50 | ) | 6 | (113 | ) | 57 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 9,375 | $ | 3,810 | $ | 5,565 | 59.4 | % | $ | 3,586 | $ | — | $ | 1,979 | 21.1 | % | ||||||||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Gross margin | Selling, general and administrative expenses | Other operating charges | Operating income | Operating margin | |||||||||||||||||||||||||
Reported (GAAP) | $ | 10,000 | $ | 4,054 | $ | 5,946 | 59.5 | % | $ | 3,937 | $ | 491 | $ | 1,518 | 15.2 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (88 | ) | 88 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (368 | ) | 368 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (21 | ) | 21 | |||||||||||||||||||||||||
Other Items | 5 | — | 5 | 8 | (14 | ) | 11 | |||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 10,005 | $ | 4,054 | $ | 5,951 | 59.5 | % | $ | 3,945 | $ | — | $ | 2,006 | 20.0 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (6) | (6) | (6) | (9) | 39 | (11) | ||||||||||||||||||||||||||
% Currency Impact | (2) | 0 | (3) | (1) | — | (8) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (4) | (7) | (3) | (8) | — | (3) | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (6) | (6) | (7) | (9) | — | (1) | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | 0 | (3) | (1) | — | (8) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (4) | (6) | (3) | (8) | — | 7 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 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) | $ | 248 | $ | 157 | $ | (919 | ) | $ | 515 | $ | (32 | ) | (6.3 | )% | $ | (3 | ) | $ | 550 | $ | 0.13 | ||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 153 | 56 | — | 97 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 165 | 57 | — | 108 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | 26 | — | 26 | 3 | — | 23 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 813 | 1,062 | 361 | — | 701 | 0.16 | |||||||||||||||||||||||||||||
Other Items | — | — | 73 | 130 | 21 | — | 109 | 0.03 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (5 | ) | — | 5 | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 248 | $ | 183 | $ | (33 | ) | $ | 2,051 | $ | 461 | 22.5 | % | $ | (3 | ) | $ | 1,593 | $ | 0.37 | |||||||||||||||||
Three Months Ended December 31, 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) | $ | 143 | $ | 87 | $ | (78 | ) | $ | 1,538 | $ | 302 | 19.6 | % | $ | (1 | ) | $ | 1,237 | $ | 0.28 | |||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 88 | — | — | 88 | 0.02 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 368 | 135 | — | 233 | 0.05 | |||||||||||||||||||||||||||||
Equity Investees | — | 8 | — | 8 | — | — | 8 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 178 | 199 | 65 | — | 134 | 0.03 | |||||||||||||||||||||||||||||
Other Items | — | — | (49 | ) | (38 | ) | (15 | ) | — | (23 | ) | (0.01 | ) | ||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (1 | ) | — | 1 | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 143 | $ | 95 | $ | 51 | $ | 2,163 | $ | 486 | 22.5 | % | $ | (1 | ) | $ | 1,678 | $ | 0.38 | ||||||||||||||||||
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) | 73 | 82 | — | (67) | — | (358) | (56) | (55) | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 73 | 94 | — | (5) | (5) | (336) | (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 | 4,345 million average shares outstanding — diluted |
3 | 4,390 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) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 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) | $ | 41,863 | $ | 16,465 | $ | 25,398 | 60.7 | % | $ | 15,262 | $ | 1,510 | $ | 8,626 | 20.6 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (393 | ) | 393 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (352 | ) | 352 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (456 | ) | 456 | |||||||||||||||||||||||||
Other Items | (9 | ) | 148 | (157 | ) | 21 | (309 | ) | 131 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 41,854 | $ | 16,613 | $ | 25,241 | 60.3 | % | $ | 15,283 | $ | — | $ | 9,958 | 23.8 | % | ||||||||||||||||
Year Ended December 31, 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) | $ | 44,294 | $ | 17,482 | $ | 26,812 | 60.5 | % | $ | 16,427 | $ | 1,657 | $ | 8,728 | 19.7 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (292 | ) | 292 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (691 | ) | 691 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (448 | ) | 448 | |||||||||||||||||||||||||
Other Items | (37 | ) | (66 | ) | 29 | 41 | (226 | ) | 214 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 44,257 | $ | 17,416 | $ | 26,841 | 60.6 | % | $ | 16,468 | $ | — | $ | 10,373 | 23.4 | % | ||||||||||||||||
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) | (7) | (9) | (1) | ||||||||||||||||||||||||||
% Currency Impact | (3) | (1) | (4) | (2) | — | (8) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (3) | (5) | (1) | (5) | — | 7 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (5) | (5) | (6) | (7) | — | (4) | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (1) | (4) | (2) | — | (7) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (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) | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 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) | $ | 733 | $ | 835 | $ | (1,234 | ) | $ | 8,136 | $ | 1,586 | 19.5 | % | $ | 23 | $ | 6,527 | $ | 1.49 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 393 | 56 | — | 337 | 0.08 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 352 | 122 | — | 230 | 0.05 | |||||||||||||||||||||||||||||
Equity Investees | — | 61 | — | 61 | 11 | — | 50 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 1,167 | 1,623 | 724 | — | 899 | 0.21 | |||||||||||||||||||||||||||||
Other Items | — | — | 113 | 244 | 22 | — | 222 | 0.05 | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (89 | ) | — | 89 | 0.02 | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 733 | $ | 896 | $ | 46 | $ | 10,809 | $ | 2,432 | 22.5 | % | $ | 23 | $ | 8,354 | $ | 1.91 | |||||||||||||||||||
Year Ended December 31, 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) | $ | 856 | $ | 489 | $ | 631 | $ | 9,605 | $ | 2,239 | 23.3 | % | $ | 15 | $ | 7,351 | $ | 1.67 | |||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 292 | — | — | 292 | 0.07 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 691 | 259 | — | 432 | 0.10 | |||||||||||||||||||||||||||||
Equity Investees | — | 87 | — | 87 | 5 | — | 82 | 0.02 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | (351 | ) | 97 | (108 | ) | — | 205 | 0.05 | |||||||||||||||||||||||||||
Other Items | (320 | ) | — | 64 | 598 | 158 | — | 440 | 0.10 | ||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 5 | — | (5 | ) | — | ||||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 536 | $ | 576 | $ | 344 | $ | 11,370 | $ | 2,558 | 22.5 | % | $ | 15 | $ | 8,797 | $ | 2.00 | |||||||||||||||||||
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) | (14) | 71 | — | (15) | (29) | 45 | (11) | (10) | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 37 | 55 | (87) | (5) | (5) | 45 | (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 | 4,367 million average shares outstanding — diluted |
3 | 4,405 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 December 31, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (67) | (55) | |||
% Currency Impact | (17) | (23) | |||
% Change — Currency Neutral (Non-GAAP) | (49) | (32) | |||
% Structural Impact | 2 | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | (50) | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (61) | (51) | |||
% Change — Comparable (Non-GAAP) | (5) | (4) | |||
% Comparable Currency Impact (Non-GAAP) | (11) | (11) | |||
% Change — Comparable Currency Neutral (Non-GAAP) | 6 | 7 | |||
% Comparable Structural Impact (Non-GAAP) | (7) | — | |||
% Change — Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) | 14 | — | |||
Year Ended December 31, 2016 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (15) | (10) | |||
% Currency Impact | (12) | (13) | |||
% Change — Currency Neutral (Non-GAAP) | (3) | 2 | |||
% Structural Impact | (2) | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | (1) | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (10) | (6) | |||
% 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) | 8 | — | |||
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 December 31, 2016 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,645 | $ | 982 | $ | 2,473 | $ | 1,039 | $ | 4,138 | $ | 37 | $ | (905 | ) | $ | 9,409 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (7 | ) | — | — | (27 | ) | — | (34 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,645 | $ | 982 | $ | 2,466 | $ | 1,039 | $ | 4,138 | $ | 10 | $ | (905 | ) | $ | 9,375 | |||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,711 | $ | 1,023 | $ | 2,292 | $ | 960 | $ | 5,199 | $ | 46 | $ | (1,231 | ) | $ | 10,000 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (5 | ) | — | — | 10 | — | 5 | |||||||||||||||||
Comparable (Non-GAAP) | $ | 1,711 | $ | 1,023 | $ | 2,287 | $ | 960 | $ | 5,199 | $ | 56 | $ | (1,231 | ) | $ | 10,005 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (4) | (4) | 8 | 8 | (20) | (20) | 27 | (6) | ||||||||||||||||||
% Currency Impact | (2) | (14) | 0 | 4 | 0 | 26 | — | (2) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (2) | 10 | 8 | 4 | (20) | (46) | — | (4) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (6) | 0 | 0 | (3) | (23) | (6) | — | (10) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 5 | 10 | 8 | 7 | 3 | (42) | — | 6 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (4) | 8 | 8 | (20) | (82) | — | (6) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | (14) | 0 | 4 | 0 | (43) | — | (2) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (2) | 10 | 8 | 4 | (20) | (38) | — | (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) | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net Operating Revenues by Segment: | ||||||||||||||||||||||||||
Year Ended December 31, 2016 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 7,278 | $ | 3,819 | $ | 10,210 | $ | 5,294 | $ | 19,885 | $ | 132 | $ | (4,755 | ) | $ | 41,863 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (18 | ) | — | — | 9 | — | (9 | ) | ||||||||||||||||
Comparable (Non-GAAP) | $ | 7,278 | $ | 3,819 | $ | 10,192 | $ | 5,294 | $ | 19,885 | $ | 141 | $ | (4,755 | ) | $ | 41,854 | |||||||||
Year Ended December 31, 2015 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 7,587 | $ | 4,074 | $ | 9,840 | $ | 5,252 | $ | 23,063 | $ | 166 | $ | (5,688 | ) | $ | 44,294 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | — | — | — | — | ||||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | — | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | — | — | — | ||||||||||||||||||
Other Items | — | — | (24 | ) | — | — | (13 | ) | — | (37 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 7,587 | $ | 4,074 | $ | 9,816 | $ | 5,252 | $ | 23,063 | $ | 153 | $ | (5,688 | ) | $ | 44,257 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | (4) | (6) | 4 | 1 | (14) | (21) | 16 | (5) | ||||||||||||||||||
% Currency Impact | (3) | (18) | 0 | 1 | (1) | (26) | — | (3) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (1) | 12 | 4 | (1) | (13) | 6 | — | (3) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (4) | 0 | 0 | (2) | (13) | 9 | — | (6) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 3 | 12 | 4 | 1 | 1 | (4) | — | 3 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (6) | 4 | 1 | (14) | (8) | — | (5) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (18) | 0 | 1 | (1) | (14) | — | (3) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 12 | 4 | (1) | (13) | 6 | — | (3) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Business Revenues (Non-GAAP): 1 | |||||
Three Months Ended December 31, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,409 | |||
Bottling Investments Net Operating Revenues | (4,138 | ) | |||
Consolidated Eliminations | 905 | ||||
Intersegment Core Net Operating Revenue Eliminations | (1 | ) | |||
Core Business Revenues (Non-GAAP) | 6,175 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (34 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,141 | |||
Three Months Ended December 31, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 10,000 | |||
Bottling Investments Net Operating Revenues | (5,199 | ) | |||
Consolidated Eliminations | 1,231 | ||||
Intersegment Core Net Operating Revenue Eliminations | (11 | ) | |||
Core Business Revenues (Non-GAAP) | 6,021 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | 5 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,026 | |||
% Change — Reported (GAAP) Net Operating Revenues | (6) | ||||
% Change — Core Business Revenues (Non-GAAP) | 3 | ||||
% Core Business Currency Impact (Non-GAAP) | (2) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 5 | ||||
% Acquisitions, Divestitures and Structural Items | (2) | ||||
% Change — Core Business Organic Revenues (Non-GAAP)2 | 7 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | 2 | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | (3) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (Non-GAAP) | 5 |
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 (Non-GAAP) 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 and $11 million during the three months ended December 31, 2016 and December 31, 2015, respectively. |
2 | Core business organic revenue (Non-GAAP) growth included 7 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 (Non-GAAP): 1 | |||||
Year Ended December 31, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 41,863 | |||
Bottling Investments Net Operating Revenues | (19,885 | ) | |||
Consolidated Eliminations | 4,755 | ||||
Intersegment Core Net Operating Revenue Eliminations | (15 | ) | |||
Core Business Revenues (Non-GAAP) | 26,718 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (9 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 26,709 | |||
Year Ended December 31, 2015 | |||||
Reported (GAAP) Net Operating Revenues | $ | 44,294 | |||
Bottling Investments Net Operating Revenues | (23,063 | ) | |||
Consolidated Eliminations | 5,688 | ||||
Intersegment Core Net Operating Revenue Eliminations | (19 | ) | |||
Core Business Revenues (Non-GAAP) | 26,900 | ||||
Items Impacting Comparability: | |||||
Asset Impairments/Restructuring | — | ||||
Productivity & Reinvestment | — | ||||
Equity Investees | — | ||||
Transaction Gains/Losses | — | ||||
Other Items | (37 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 26,863 | |||
% Change — Reported (GAAP) Net Operating Revenues | (5) | ||||
% Change — Core Business Revenues (Non-GAAP) | (1) | ||||
% Core Business Currency Impact (Non-GAAP) | (3) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 3 | ||||
% 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) | (3) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (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 business revenues (Non-GAAP) 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 $15 million and $19 million during the years ended December 31, 2016 and December 31, 2015, respectively. |
2 | Core business organic revenue (Non-GAAP) 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) | |||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||
Three Months Ended December 31, 2016 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 779 | $ | 481 | $ | 600 | $ | 332 | $ | (359 | ) | $ | (478 | ) | $ | 1,355 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 153 | — | 153 | ||||||||||||||||
Productivity & Reinvestment | 26 | — | 54 | — | 22 | 63 | 165 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 246 | 3 | 249 | ||||||||||||||||
Other Items | — | — | (16 | ) | — | (10 | ) | 83 | 57 | ||||||||||||||
Comparable (Non-GAAP) | $ | 805 | $ | 481 | $ | 638 | $ | 332 | $ | 52 | $ | (329 | ) | $ | 1,979 | ||||||||
Three Months Ended December 31, 2015 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 839 | $ | 528 | $ | 492 | $ | 313 | $ | (115 | ) | $ | (539 | ) | $ | 1,518 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 88 | — | 88 | ||||||||||||||||
Productivity & Reinvestment | (12 | ) | — | 37 | 3 | 147 | 193 | 368 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 3 | 18 | 21 | ||||||||||||||||
Other Items | — | — | 22 | — | (34 | ) | 23 | 11 | |||||||||||||||
Comparable (Non-GAAP) | $ | 827 | $ | 528 | $ | 551 | $ | 316 | $ | 89 | $ | (305 | ) | $ | 2,006 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | (7) | (9) | 22 | 6 | (212) | 11 | (11) | ||||||||||||||||
% Currency Impact | (2) | (23) | (1) | 1 | 3 | 3 | (8) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (5) | 14 | 22 | 5 | (215) | 9 | (3) | ||||||||||||||||
% Change — Comparable (Non-GAAP) | (3) | (9) | 16 | 5 | (41) | (8) | (1) | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | (23) | (1) | 1 | 1 | (7) | (8) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 14 | 16 | 4 | (42) | (1) | 7 |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Segment: | |||||||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 3,676 | $ | 1,951 | $ | 2,582 | $ | 2,224 | $ | (137 | ) | $ | (1,670 | ) | $ | 8,626 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 393 | — | 393 | ||||||||||||||||
Productivity & Reinvestment | 32 | (2 | ) | 134 | 1 | 82 | 105 | 352 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 424 | 32 | 456 | ||||||||||||||||
Other Items | — | 76 | (47 | ) | — | (130 | ) | 232 | 131 | ||||||||||||||
Comparable (Non-GAAP) | $ | 3,708 | $ | 2,025 | $ | 2,669 | $ | 2,225 | $ | 632 | $ | (1,301 | ) | $ | 9,958 | ||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 3,875 | $ | 2,169 | $ | 2,366 | $ | 2,189 | $ | 124 | $ | (1,995 | ) | $ | 8,728 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 292 | — | 292 | ||||||||||||||||
Productivity & Reinvestment | (9 | ) | 7 | 141 | 2 | 304 | 246 | 691 | |||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 3 | 445 | 448 | ||||||||||||||||
Other Items | — | 33 | 12 | 2 | (10 | ) | 177 | 214 | |||||||||||||||
Comparable (Non-GAAP) | $ | 3,866 | $ | 2,209 | $ | 2,519 | $ | 2,193 | $ | 713 | $ | (1,127 | ) | $ | 10,373 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | (5) | (10) | 9 | 2 | — | 16 | (1) | ||||||||||||||||
% Currency Impact | (3) | (27) | 0 | 0 | — | (2) | (8) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (2) | 17 | 9 | 2 | — | 18 | 7 | ||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (8) | 6 | 2 | (11) | (15) | (4) | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (26) | 0 | 0 | (1) | (1) | (7) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 18 | 6 | 2 | (10) | (14) | 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) | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Segment: | |||||||||||||||||||||||||||||
Three Months Ended December 31, 2016 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 799 | $ | 481 | $ | 582 | $ | 335 | $ | (1,026 | ) | $ | (656 | ) | $ | 515 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 153 | — | 153 | ||||||||||||||||||||||
Productivity & Reinvestment | 26 | — | 54 | — | 22 | 63 | 165 | ||||||||||||||||||||||
Equity Investees | — | — | — | — | 20 | 6 | 26 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 15 | — | 1,044 | 3 | 1,062 | ||||||||||||||||||||||
Other Items | — | — | (16 | ) | — | (9 | ) | 155 | 130 | ||||||||||||||||||||
Comparable (Non-GAAP) | $ | 825 | $ | 481 | $ | 635 | $ | 335 | $ | 204 | $ | (429 | ) | $ | 2,051 | ||||||||||||||
Three Months Ended December 31, 2015 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 838 | $ | 515 | $ | 491 | $ | 317 | $ | (187 | ) | $ | (436 | ) | $ | 1,538 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 88 | — | 88 | ||||||||||||||||||||||
Productivity & Reinvestment | (12 | ) | — | 37 | 3 | 147 | 193 | 368 | |||||||||||||||||||||
Equity Investees | 1 | — | — | — | 7 | — | 8 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 183 | 16 | 199 | ||||||||||||||||||||||
Other Items | — | — | 22 | — | (34 | ) | (26 | ) | (38 | ) | |||||||||||||||||||
Comparable (Non-GAAP) | $ | 827 | $ | 515 | $ | 550 | $ | 320 | $ | 204 | $ | (253 | ) | $ | 2,163 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | (5) | (7) | 18 | 6 | (447) | (50) | (67) | ||||||||||||||||||||||
% Currency Impact | (2) | (24) | (1) | 1 | 6 | (32) | (17) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (3) | 17 | 19 | 4 | (453) | (18) | (49) | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | (4) | 0 | 3 | 1 | (449) | 19 | (61) | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 0 | (7) | 15 | 5 | 1 | (70) | (5) | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (2) | (24) | (1) | 1 | 1 | (41) | (11) | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 2 | 17 | 16 | 3 | 0 | (29) | 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: | |||||||||||||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 3,749 | $ | 1,966 | $ | 2,560 | $ | 2,238 | $ | (1,923 | ) | $ | (454 | ) | $ | 8,136 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 393 | — | 393 | ||||||||||||||||||||||
Productivity & Reinvestment | 32 | (2 | ) | 134 | 1 | 82 | 105 | 352 | |||||||||||||||||||||
Equity Investees | — | — | — | — | 52 | 9 | 61 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 32 | — | 2,879 | (1,288 | ) | 1,623 | |||||||||||||||||||||
Other Items | — | 76 | (47 | ) | — | (129 | ) | 344 | 244 | ||||||||||||||||||||
Comparable (Non-GAAP) | $ | 3,781 | $ | 2,040 | $ | 2,679 | $ | 2,239 | $ | 1,354 | $ | (1,284 | ) | $ | 10,809 | ||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 3,923 | $ | 2,164 | $ | 2,356 | $ | 2,207 | $ | (427 | ) | $ | (618 | ) | $ | 9,605 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 292 | — | 292 | ||||||||||||||||||||||
Productivity & Reinvestment | (9 | ) | 7 | 141 | 2 | 304 | 246 | 691 | |||||||||||||||||||||
Equity Investees | 4 | — | — | — | 83 | — | 87 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 1,010 | (913 | ) | 97 | |||||||||||||||||||||
Other Items | — | 33 | 12 | 2 | (10 | ) | 561 | 598 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 3,918 | $ | 2,204 | $ | 2,509 | $ | 2,211 | $ | 1,252 | $ | (724 | ) | $ | 11,370 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | (4) | (9) | 9 | 1 | (350) | 27 | (15) | ||||||||||||||||||||||
% Currency Impact | (3) | (27) | 0 | 0 | (3) | (70) | (12) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (2) | 18 | 9 | 2 | (346) | 96 | (3) | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | (1) | (2) | 2 | 0 | (358) | 104 | (10) | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (4) | (7) | 7 | 1 | 8 | (77) | (5) | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | (26) | 0 | 0 | (2) | (47) | (9) | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (1) | 19 | 7 | 2 | 11 | (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 December 31, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (11) | (6) | (5) | ||||
% Change — Currency Neutral (Non-GAAP) | (3) | (3) | 0 | ||||
% Change — Comparable (Non-GAAP) | (1) | (7) | 5 | ||||
% Change — Comparable Currency Neutral (Non-GAAP) | 7 | (3) | 10 | ||||
Year Ended December 31, 2016 | |||||||
Operating income | Gross profit | Operating expense leverage1 | |||||
% Change — Reported (GAAP) | (1) | (5) | 4 | ||||
% Change — Currency Neutral (Non-GAAP) | 7 | (1) | 9 | ||||
% Change — Comparable (Non-GAAP) | (4) | (6) | 2 | ||||
% Change — Comparable Currency Neutral (Non-GAAP) | 3 | (2) | 5 |
Note: | Certain rows may not add due to rounding. |
Operating Margin: | ||||||
Three Months Ended December 31, 2016 | Three Months Ended December 31, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 14.40 | % | 15.19 | % | (79 | ) |
Items Impacting Comparability (Non-GAAP) | (6.71 | )% | (4.86 | )% | ||
Comparable Operating Margin (Non-GAAP) | 21.11 | % | 20.05 | % | 106 | |
Comparable Currency Impact (Non-GAAP) | (1.23 | )% | 0.00 | % | ||
Comparable Currency Neutral Operating Margin (Non-GAAP) | 22.34 | % | 20.05 | % | 229 | |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 20.61 | % | 19.70 | % | 91 | |
Items Impacting Comparability (Non-GAAP) | (3.18 | )% | (3.74 | )% | ||
Comparable Operating Margin (Non-GAAP) | 23.79 | % | 23.44 | % | 35 | |
Comparable Currency Impact (Non-GAAP) | (1.04 | )% | 0.00 | % | ||
Comparable Currency Neutral Operating Margin (Non-GAAP) | 24.83 | % | 23.44 | % | 139 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Purchases and Issuances of Stock: | ||||||||||
Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||
Reported (GAAP) | ||||||||||
Issuances of Stock | $ | 1,434 | $ | 1,245 | ||||||
Purchases of Stock for Treasury | (3,681 | ) | (3,564 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 1 | 1 | ||||||||
Net Change in Treasury Stock Payables2 | (63 | ) | 18 | |||||||
Net Share Repurchases (Non-GAAP) | $ | (2,309 | ) | $ | (2,300 | ) |
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: | ||||||||||
Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP) | $ | 8,796 | $ | 10,528 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments for Pension Plan Contributions | 471 | — | ||||||||
Comparable (Non-GAAP) | $ | 9,267 | $ | 10,528 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | (16) | |||||||||
% Change — Comparable (Non-GAAP) | (12) |
Note: | Certain growth rates may not recalculate using the rounded dollar amounts provided. |