Highlights |
Quarterly Performance |
• | Revenues: Net revenues declined 15% to $9.1 billion, impacted by an 18% headwind from the ongoing refranchising of bottling territories. Organic revenues (non-GAAP) grew 4%, driven by price/mix growth of 3% and concentrate sales growth of 1%. Core business organic revenues (non-GAAP) also grew 4% |
• | Volume: Total unit case volume was even. Despite continued macroeconomic challenges in certain Latin American markets, emerging and developing markets saw improving trends, achieving slightly positive unit case volume growth. This was offset by the performance in developed markets, which was negatively impacted by weather and the cycling of strong results from the prior year. |
• | Margin: Operating margin, which included items impacting comparability, grew 200 basis points. Comparable operating margin (non-GAAP) expanded 400 basis points, driven by divestitures of lower-margin bottling businesses through refranchising and continued operating expense management associated with the Company's ongoing productivity efforts. |
• | Market Share: The Company gained value share in total nonalcoholic ready-to-drink ("NARTD") beverages. The value share growth outpaced volume share, reflecting the Company's continued shift in focus from volume growth to value growth. The Company gained or maintained value share in sparkling soft drinks, juices, sports drinks, and ready-to-drink ("RTD") tea. |
• | Cash Flow: Year-to-date cash from operations was $5.9 billion, down 12%. This decrease was primarily driven by the ongoing refranchising of North America bottling territories. Year-to-date free cash flow (non-GAAP) was $4.7 billion, down 8%. This decrease was primarily driven by the ongoing refranchising of North America bottling territories, partially offset by lower capital expenditures. |
• | Share Repurchases: Year-to-date purchases of stock for treasury were $3.1 billion. Year-to-date net share repurchases (non-GAAP) totaled $1.7 billion. |
Company Updates |
• | Taking a more innovative approach to sparkling soft drinks: The Company continues to find ways to reduce the amount of added sugar in many beverages around the world and remains on track to reformulate more than 500 products this year. Coca-Cola Zero Sugar continued to perform well, growing unit case volume high single digits during the quarter. The new recipe was successfully introduced in the United States midway through the quarter, doubling its unit case volume growth rate versus the prior quarter. By the first quarter of 2018, the Company plans to introduce this innovation in all key markets around the world. |
• | Portfolio diversification beyond sparkling soft drinks: In early October, the Company acquired the Topo Chico premium sparkling mineral water brand in the United States. Topo Chico is a fast-growing brand in parts of the United States, especially Texas. Through the Venturing & Emerging Brands unit, the Company plans to expand U.S. distribution while preserving the heritage of the brand. In the U.S. RTD coffee category, the Company launched a line of Dunkin' Donuts branded iced coffee beverages earlier this year, and performance is exceeding expectations. McDonald's also announced a new RTD frappé coffee line in partnership with the Company, which is expected to be available in the United States early |
• | Reshaping the global bottling network: With the progress made since the last quarter, nearly 80% of Coca-Cola Refreshments' ("CCR") U.S. volume has now been transitioned to new ownership. The Company expects to complete the refranchising of CCR in the United States within the coming weeks. In Africa, a key transition of bottling assets was completed in early October, which resulted in the Company obtaining a majority interest in Coca-Cola Beverages Africa ("CCBA"). The Company will temporarily hold this controlling interest until CCBA is refranchised, which is expected to be completed in 2018. The Company will account for CCBA as a discontinued operation. |
• | Shared value as a growth driver: The Coca-Cola system in India and its fruit industry partners recently announced plans for a "fruit circular economy" initiative. The planned economic contribution of $1.7 billion to India's agriculture ecosystem over the next five years is expected to benefit approximately 200,000 Indian fruit farmers. This initiative includes adding Indian fruit juices to existing sparkling brands, launching new juice drinks based on Indian fruit flavors, and exploring new beverage categories. The program supported the launch of Minute Maid Pulpy Mosambi, which helped the Minute Maid Pulpy brand grow triple digits in India during the quarter. |
• | Leadership transition: Earlier this week, the Company announced that J. Alexander "Sandy" Douglas Jr. will retire as President of Coca-Cola North America ("CCNA"). He will be succeeded by James L. "Jim" Dinkins, who currently serves as President of the Minute Maid business unit and Chief Retail Sales Officer for CCNA. Jim begins his new duties Jan. 1, 2018, and Sandy will retire from the Company March 1, 2018. The Company thanks Sandy for his leadership and dedicated service to the global Coca-Cola system over the past 30 years. |
Operating Review – Three Months Ended September 29, 2017 |
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 | 0 | (18) | (15) | 4 | 0 | ||
Europe, Middle East & Africa | 4 | 1 | 1 | 0 | 6 | 5 | 1 | ||
Latin America | (4) | 10 | 1 | 0 | 7 | 6 | (3) | ||
North America | 1 | 2 | 0 | 1 | 3 | 2 | 0 | ||
Asia Pacific | 2 | 1 | (5) | 0 | (2) | 3 | 3 | ||
Bottling Investments | (1) | 4 | 0 | (53) | (50) | 2 | (53) |
Percent Change | Reported Income Before Income Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Items | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | 17 | 14 | 0 | 3 | (9) | 12 |
Europe, Middle East & Africa | 4 | 0 | 1 | 4 | ||
Latin America | 25 | 18 | 1 | 7 | ||
North America | (11) | (11) | 0 | 1 | ||
Asia Pacific | 0 | 0 | (7) | 7 | ||
Bottling Investments | 8 | 36 | 2 | (29) | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | 40 | 38 | 0 | 2 |
Consolidated |
• | Price/mix growth of 3% resulted from positive price/mix in each of the operating segments. Geographic or segment mix did not have a significant impact on price/mix. |
• | Unit case volume was even and included the following performance by category cluster: |
◦ | Sparkling soft drinks: 0% |
◦ | Juice, dairy, and plant-based beverages: 1% |
◦ | Water, enhanced water, and sports drinks: -1% |
◦ | Tea and coffee: 1% |
• | The growth in income before income taxes was impacted by comparability items, which were predominantly charges associated with the refranchising of bottling territories in North America. The growth was also impacted by structural items, which were primarily the refranchising of bottling territories. The growth in comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP) was driven by the continued impact of productivity initiatives as well as the timing of expenses in the prior year, partially offset by higher interest expense. |
Europe, Middle East & Africa |
• | Price/mix growth of 1% was driven by positive price/mix across the European business units. The price/mix growth also included a negative impact from geographic mix, which was driven by strong concentrate sales growth in the Middle East & North Africa business unit that outpaced concentrate sales performance in the Western Europe business unit. |
• | Unit case volume growth of 1% was driven by high single-digit growth in the Turkey, Caucasus & Central Asia business unit and mid single-digit growth in the Central & Eastern Europe business unit, partially offset by a low single-digit decline in the Western Europe business unit, which was negatively impacted by cooler weather. All category clusters grew unit case volume, with mid single-digit growth in water, enhanced water, and sports drinks contributing the highest amount of incremental unit cases. |
• | The Company gained value share in the juice, dairy, and plant-based beverages category cluster. |
Latin America |
• | Price/mix growth of 10% was primarily driven by price/mix growth in Mexico. All business units in the operating segment achieved positive price/mix. |
• | The 3% unit case volume decline was driven by a high single-digit decline in both Brazil and the Latin Center business unit. Mexico unit case volume was down 1%, negatively impacted by cooler weather, higher amounts of rain, and a softening consumer environment. Unit case volume for sparkling soft drinks declined mid single digits, primarily due to Brazil and Venezuela. Juice, dairy, and plant-based beverages unit case volume grew low single digits, driven by incremental volume from the recently acquired AdeS brand of plant-based beverages. |
• | The Company maintained value share in total NARTD beverages. The Company gained value share in sparkling soft drinks. |
North America |
• | Price/mix growth of 2% reflects the continued execution of the Company's disciplined occasion, brand, price, and package strategy, as well as strong rate and mix growth in the foodservice and on-premise channel. Sparkling soft drinks price/mix grew 3%. Acquisitions, divestitures, and structural items reflect the impact of the ongoing refranchising of bottling territories in North America. |
• | Unit case volume was even, which included low single-digit growth in tea and coffee, offset by a low single-digit decline in water, enhanced water, and sports drinks. Sparkling soft drinks unit case volume was even, which included mid single-digit growth in Sprite, offset by a mid single-digit decline in Diet Coke. |
• | Income before income taxes included items impacting comparability. Comparable currency neutral income before income taxes (non-GAAP) was favorably impacted by the ongoing refranchising of bottling territories in North America. |
• | The Company gained value share in total NARTD beverages for the 30th consecutive quarter. The Company also gained value share in sparkling soft drinks as well as the tea and coffee category cluster. The Company maintained value share in the juice, dairy, and plant-based beverages category cluster. |
Asia Pacific |
• | Price/mix growth of 1% included a negative impact from geographic mix, which was driven by growth in India and China outpacing performance in Japan. |
• | Unit case volume growth of 3% was driven by low single-digit growth in the Greater China & Korea business unit and high single-digit growth in the India & South West Asia business unit. For the third quarter in a row, trademark Coca-Cola accounted for over half of the incremental unit case volume growth in the operating segment, driven by strong performance of brand Coca-Cola in China. Water, enhanced water, and sports drinks unit case volume declined low single digits, driven by the strategic deprioritization of low-margin water in both China and Japan. |
• | Income before income taxes included the impact of changes in foreign currency exchange rates. Comparable currency neutral income before income taxes (non-GAAP) was unfavorably impacted by the deconsolidation of previously held bottling operations in China. |
• | The Company gained value share in sparkling soft drinks and the juice, dairy, and plant-based beverages category cluster. |
Bottling Investments |
• | Price/mix growth of 4% was driven by positive price/mix in North America and India bottling operations. |
• | Income before income taxes was driven by items impacting comparability and the impact of changes in foreign currency exchange rates. Comparable currency neutral income before income taxes (non-GAAP) was unfavorably impacted by the ongoing refranchising of North America bottling territories and the deconsolidation of previously held bottling operations in China. |
Operating Review – Nine Months Ended September 29, 2017 3 |
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 | (1) | (15) | (14) | 2 | 0 | ||
Europe, Middle East & Africa | 2 | 2 | (3) | (1) | 0 | 4 | 2 | ||
Latin America | (4) | 7 | 0 | 0 | 3 | 3 | (3) | ||
North America | 0 | 3 | 0 | 1 | 4 | 2 | 0 | ||
Asia Pacific | 1 | 0 | (3) | 0 | (3) | 1 | 2 | ||
Bottling Investments | (3) | 2 | 0 | (40) | (41) | 0 | (42) |
Percent Change | Reported Income Before Income Taxes | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | Structural Items | Comparable Currency Neutral (Structurally Adjusted) 2 |
Consolidated | (24) | (23) | (2) | 1 | (6) | 7 |
Europe, Middle East & Africa | 0 | 0 | (3) | 4 | ||
Latin America | 10 | 5 | 0 | 5 | ||
North America | (14) | (17) | (1) | 5 | ||
Asia Pacific | (3) | 0 | (5) | 3 | ||
Bottling Investments | (93) | (70) | 1 | (23) | ||
Percent Change | Reported EPS | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral 2 | ||
Consolidated EPS | (32) | (31) | (2) | 0 |
Outlook |
• | Approximately 3% growth in organic revenues (non-GAAP) – No Change |
• | 7% to 8% growth in comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP), driven by strong operating performance, partially offset by the impact of an increasing interest rate environment – No Change |
• | Comparable net revenues (non-GAAP): 1% headwind based on the current rates and including the impact of hedged positions – Updated |
• | Comparable income before income taxes (non-GAAP): 1% headwind based on the current rates and including the impact of hedged positions – Updated |
• | Comparable net revenues (non-GAAP): 18% headwind from acquisitions, divestitures, and structural items – Updated |
• | Comparable income before income taxes (non-GAAP): 6% to 7% structural headwind – Updated |
• | Underlying effective tax rate (non-GAAP): 24.0%* – No Change |
• | Net share repurchases (non-GAAP): Approximately $2.0 billion – No Change |
• | Net capital expenditures: Approximately $2.0 billion – Updated |
• | Comparable EPS (non-GAAP): Even to 2% decline versus $1.91 in 2016 – No Change |
• | Comparable net revenues (non-GAAP): 27% headwind from acquisitions, divestitures, and structural items; 0% to 1% currency tailwind based on the current rates and including the impact of hedged positions – New |
• | Comparable income before income taxes (non-GAAP): 11% to 12% structural headwind; 4% to 5% currency tailwind based on the current rates and including the impact of hedged positions – New |
• | Comparable net revenues (non-GAAP): 16% to 17% headwind from acquisitions, divestitures, and structural items – No Change |
• | Comparable income before income taxes (non-GAAP): 1% to 2% structural headwind; low single-digit currency headwind based on the current rates and including the impact of hedged positions – No Change |
• | Underlying effective tax rate (non-GAAP): 26.0%* – No Change |
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, source waters, and powders/minerals (in all instances expressed in equivalent unit cases) 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 the geographic operating segments (expressed in equivalent unit cases) after considering the impact of structural changes. For the 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. The Bottling Investments operating segment reflects unit case volume growth for consolidated bottlers only. |
• | "Price/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 where the sales occurred. |
• | First quarter 2017 financial results were impacted by two fewer days and fourth quarter 2017 financial results will be impacted by one additional day as compared to the same periods in 2016. Unit case volume results are not impacted by variances 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 29, 2017 | September 30, 2016 | % Change1 | ||||||||
Net Operating Revenues | $ | 9,078 | $ | 10,633 | (15 | ) | ||||
Cost of goods sold | 3,395 | 4,131 | (18 | ) | ||||||
Gross Profit | 5,683 | 6,502 | (13 | ) | ||||||
Selling, general and administrative expenses | 3,203 | 4,009 | (20 | ) | ||||||
Other operating charges | 360 | 222 | 62 | |||||||
Operating Income | 2,120 | 2,271 | (7 | ) | ||||||
Interest income | 175 | 164 | 6 | |||||||
Interest expense | 208 | 182 | 15 | |||||||
Equity income (loss) — net | 358 | 281 | 28 | |||||||
Other income (loss) — net | (771 | ) | (1,106 | ) | 30 | |||||
Income Before Income Taxes | 1,674 | 1,428 | 17 | |||||||
Income taxes | 230 | 378 | (39 | ) | ||||||
Consolidated Net Income | 1,444 | 1,050 | 38 | |||||||
Less: Net income (loss) attributable to noncontrolling interests | (3 | ) | 4 | — | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,447 | $ | 1,046 | 38 | |||||
Diluted Net Income Per Share2 | $ | 0.33 | $ | 0.24 | 40 | |||||
Average Shares Outstanding — Diluted2 | 4,320 | 4,364 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the three months ended September 29, 2017 and September 30, 2016, basic net income per share was $0.34 for 2017 and $0.24 for 2016 based on average shares outstanding — basic of 4,266 million for 2017 and 4,315 million for 2016. 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 29, 2017 | September 30, 2016 | % Change1 | ||||||||
Net Operating Revenues | $ | 27,898 | $ | 32,454 | (14 | ) | ||||
Cost of goods sold | 10,567 | 12,671 | (17 | ) | ||||||
Gross Profit | 17,331 | 19,783 | (12 | ) | ||||||
Selling, general and administrative expenses | 9,660 | 11,682 | (17 | ) | ||||||
Other operating charges | 1,491 | 830 | 80 | |||||||
Operating Income | 6,180 | 7,271 | (15 | ) | ||||||
Interest income | 495 | 472 | 5 | |||||||
Interest expense | 631 | 485 | 30 | |||||||
Equity income (loss) — net | 883 | 678 | 30 | |||||||
Other income (loss) — net | (1,122 | ) | (315 | ) | (257 | ) | ||||
Income Before Income Taxes | 5,805 | 7,621 | (24 | ) | ||||||
Income taxes | 1,805 | 1,618 | 11 | |||||||
Consolidated Net Income | 4,000 | 6,003 | (33 | ) | ||||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 26 | (99 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 4,000 | $ | 5,977 | (33 | ) | ||||
Diluted Net Income Per Share2 | $ | 0.92 | $ | 1.37 | (32 | ) | ||||
Average Shares Outstanding — Diluted2 | 4,327 | 4,374 |
1 | Certain growth rates may not recalculate using the rounded dollar amounts provided. |
2 | For the nine months ended September 29, 2017 and September 30, 2016, basic net income per share was $0.94 for 2017 and $1.38 for 2016 based on average shares outstanding — basic of 4,275 million for 2017 and 4,322 million for 2016. 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 29, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 12,528 | $ | 8,555 | |||
Short-term investments | 9,691 | 9,595 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 22,219 | 18,150 | |||||
Marketable securities | 5,138 | 4,051 | |||||
Trade accounts receivable, less allowances of $488 and $466, respectively | 3,664 | 3,856 | |||||
Inventories | 2,608 | 2,675 | |||||
Prepaid expenses and other assets | 2,993 | 2,481 | |||||
Assets held for sale | 1,782 | 2,797 | |||||
Total Current Assets | 38,404 | 34,010 | |||||
Equity Method Investments | 21,644 | 16,260 | |||||
Other Investments | 1,117 | 989 | |||||
Other Assets | 4,480 | 4,248 | |||||
Property, Plant and Equipment — net | 8,306 | 10,635 | |||||
Trademarks With Indefinite Lives | 6,575 | 6,097 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 138 | 3,676 | |||||
Goodwill | 9,473 | 10,629 | |||||
Other Intangible Assets | 378 | 726 | |||||
Total Assets | $ | 90,515 | $ | 87,270 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,212 | $ | 9,490 | |||
Loans and notes payable | 13,398 | 12,498 | |||||
Current maturities of long-term debt | 3,231 | 3,527 | |||||
Accrued income taxes | 355 | 307 | |||||
Liabilities held for sale | 437 | 710 | |||||
Total Current Liabilities | 27,633 | 26,532 | |||||
Long-Term Debt | 32,471 | 29,684 | |||||
Other Liabilities | 3,946 | 4,081 | |||||
Deferred Income Taxes | 4,313 | 3,753 | |||||
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 | 15,699 | 14,993 | |||||
Reinvested earnings | 64,759 | 65,502 | |||||
Accumulated other comprehensive income (loss) | (9,843 | ) | (11,205 | ) | |||
Treasury stock, at cost — 2,778 and 2,752 shares, respectively | (50,256 | ) | (47,988 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 22,119 | 23,062 | |||||
Equity Attributable to Noncontrolling Interests | 33 | 158 | |||||
Total Equity | 22,152 | 23,220 | |||||
Total Liabilities and Equity | $ | 90,515 | $ | 87,270 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Nine Months Ended | |||||||
September 29, 2017 | September 30, 2016 | ||||||
Operating Activities | |||||||
Consolidated net income | $ | 4,000 | $ | 6,003 | |||
Depreciation and amortization | 926 | 1,323 | |||||
Stock-based compensation expense | 167 | 191 | |||||
Deferred income taxes | 606 | (98 | ) | ||||
Equity (income) loss — net of dividends | (559 | ) | (417 | ) | |||
Foreign currency adjustments | 322 | 193 | |||||
Significant (gains) losses on sales of assets — net | 942 | 364 | |||||
Other operating charges | 918 | 277 | |||||
Other items | (9 | ) | (205 | ) | |||
Net change in operating assets and liabilities | (1,395 | ) | (908 | ) | |||
Net cash provided by operating activities | 5,918 | 6,723 | |||||
Investing Activities | |||||||
Purchases of investments | (12,925 | ) | (12,733 | ) | |||
Proceeds from disposals of investments | 12,161 | 13,210 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (538 | ) | (767 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 2,790 | 745 | |||||
Purchases of property, plant and equipment | (1,194 | ) | (1,561 | ) | |||
Proceeds from disposals of property, plant and equipment | 72 | 92 | |||||
Other investing activities | (122 | ) | (319 | ) | |||
Net cash provided by (used in) investing activities | 244 | (1,333 | ) | ||||
Financing Activities | |||||||
Issuances of debt | 24,899 | 22,667 | |||||
Payments of debt | (22,424 | ) | (20,406 | ) | |||
Issuances of stock | 1,320 | 1,295 | |||||
Purchases of stock for treasury | (3,087 | ) | (2,509 | ) | |||
Dividends | (3,165 | ) | (3,028 | ) | |||
Other financing activities | (42 | ) | 198 | ||||
Net cash provided by (used in) financing activities | (2,499 | ) | (1,783 | ) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 310 | 231 | |||||
Cash and Cash Equivalents | |||||||
Net increase (decrease) during the period | 3,973 | 3,838 | |||||
Balance at beginning of period | 8,555 | 7,309 | |||||
Balance at end of period | $ | 12,528 | $ | 11,147 |
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 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | September 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | September 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,959 | $ | 1,852 | 6 | $ | 936 | $ | 914 | 2 | $ | 962 | $ | 922 | 4 | ||||||||||||||||||
Latin America | 1,035 | 965 | 7 | 563 | 435 | 29 | 561 | 447 | 25 | ||||||||||||||||||||||||
North America | 2,750 | 2,664 | 3 | 646 | 666 | (3 | ) | 583 | 653 | (11 | ) | ||||||||||||||||||||||
Asia Pacific | 1,432 | 1,460 | (2 | ) | 577 | 583 | (1 | ) | 588 | 589 | 0 | ||||||||||||||||||||||
Bottling Investments | 2,432 | 4,840 | (50 | ) | (217 | ) | 124 | — | (673 | ) | (734 | ) | 8 | ||||||||||||||||||||
Corporate | 48 | 47 | 3 | (385 | ) | (451 | ) | 15 | (347 | ) | (449 | ) | 23 | ||||||||||||||||||||
Eliminations | (578 | ) | (1,195 | ) | 52 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 9,078 | $ | 10,633 | (15 | ) | $ | 2,120 | $ | 2,271 | (7 | ) | $ | 1,674 | $ | 1,428 | 17 |
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 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | September 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | September 29, 2017 | September 30, 2016 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 5,628 | $ | 5,633 | 0 | $ | 2,884 | $ | 2,897 | 0 | $ | 2,958 | $ | 2,950 | 0 | ||||||||||||||||||
Latin America | 2,911 | 2,837 | 3 | 1,625 | 1,470 | 11 | 1,627 | 1,485 | 10 | ||||||||||||||||||||||||
North America | 8,015 | 7,737 | 4 | 1,967 | 1,982 | (1 | ) | 1,711 | 1,978 | (14 | ) | ||||||||||||||||||||||
Asia Pacific | 4,147 | 4,255 | (3 | ) | 1,835 | 1,892 | (3 | ) | 1,853 | 1,903 | (3 | ) | |||||||||||||||||||||
Bottling Investments | 9,337 | 15,747 | (41 | ) | (979 | ) | 222 | — | (1,730 | ) | (897 | ) | (93 | ) | |||||||||||||||||||
Corporate | 122 | 95 | 29 | (1,152 | ) | (1,192 | ) | 3 | (614 | ) | 202 | — | |||||||||||||||||||||
Eliminations | (2,262 | ) | (3,850 | ) | 41 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 27,898 | $ | 32,454 | (14 | ) | $ | 6,180 | $ | 7,271 | (15 | ) | $ | 5,805 | $ | 7,621 | (24 | ) |
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. In 2017, the Company refranchised its bottling operations in China to the two local franchise bottlers. The impact of these refranchising activities has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for our Asia Pacific and Bottling Investments operating segments. In 2017 and 2016, the Company refranchised bottling territories in North America to certain of its unconsolidated bottling partners. Additionally, in conjunction with the refranchising of Coca-Cola Refreshments' ("CCR") Southwest operating unit ("Southwest Transaction") on April 1, 2017, we obtained an equity interest in AC Bebidas, S. de R.L. de C.V. ("AC Bebidas"), a subsidiary of Arca Continental, S.A.B. de C.V. ("Arca"), which impacted our North America and Bottling Investments operating segments. These transactions were included as structural items in our analysis of net operating revenues on a consolidated basis and for the applicable operating segments. These transactions were also included as structural items in our analysis of comparable currency neutral income before income taxes (structurally adjusted) (non-GAAP) on a consolidated basis. In addition, for non-Company-owned and licensed beverage products sold in the refranchised territories in North America for which the Company no longer reports unit case volume, we have eliminated the unit case volume from the base year when calculating 2017 versus 2016 volume growth rates on a consolidated basis as well as for the North America and Bottling Investments operating segments. |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Comparable net revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). Management believes the comparable net revenues (non-GAAP) growth measure provides investors with useful supplemental information to enhance their understanding of the Company's revenue performance and trends by improving their ability to compare our period-to-period results. "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" is a non-GAAP financial measure that represents the combined organic revenue performance from the Europe, Middle East and Africa; Latin America; North America; and Asia Pacific operating segments and Corporate offset by intersegment eliminations. Management believes the core business organic revenues (non-GAAP) measure enhances the understanding of the change in the net operating revenues of the operating 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 29, 2017 and September 30, 2016 consisted of the structural changes discussed above. Additionally, during the nine months ended September 29, 2017, 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 plant-based protein beverages in China that were acquired in 2016. |
• | "Comparable operating margin" and "comparable income before income taxes" are non-GAAP financial measures that exclude or have otherwise been adjusted for items impacting comparability (discussed further below). "Comparable currency neutral income before income taxes" and "comparable currency neutral income before income 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 income 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 operating margin (non-GAAP) expansion, comparable income before income taxes (non-GAAP) growth, comparable currency neutral income before income taxes (non-GAAP) growth and comparable currency neutral income before income 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 |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Underlying effective tax rate" is a non-GAAP financial measure that represents the estimated annual effective income tax rate on income before income taxes that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). |
• | "Free cash flow" is a non-GAAP financial measure that represents net cash provided by operating activities less purchases of property, plant and equipment. Management uses this non-GAAP financial measure to evaluate the Company's performance and make resource allocation decisions. |
• | "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 29, 2017 | ||||||||||||||||||||||||||||||||
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) | $ | 9,078 | $ | 3,395 | $ | 5,683 | 62.6 | % | $ | 3,203 | $ | 360 | $ | 2,120 | 23.3 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | ||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (129 | ) | 129 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (213 | ) | 213 | |||||||||||||||||||||||||
Other Items | (15 | ) | (22 | ) | 7 | 3 | (18 | ) | 22 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 9,063 | $ | 3,373 | $ | 5,690 | 62.8 | % | $ | 3,206 | $ | — | $ | 2,484 | 27.4 | % | ||||||||||||||||
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 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (15) | (18) | (13) | (20) | 62 | (7) | ||||||||||||||||||||||||||
% Currency Impact | 0 | 0 | (1) | 0 | — | (2) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (14) | (18) | (12) | (20) | — | (5) | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (15) | (18) | (12) | (20) | — | 0 | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 0 | 0 | (1) | 0 | — | (1) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (14) | (18) | (12) | (20) | — | 1 |
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 29, 2017 | |||||||||||||||||||||||||||||||||||||
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) | $ | 208 | $ | 358 | $ | (771 | ) | $ | 1,674 | $ | 230 | 13.7 | % | $ | (3 | ) | $ | 1,447 | $ | 0.33 | |||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 50 | 50 | — | — | 50 | 0.01 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 129 | 44 | — | 85 | 0.02 | |||||||||||||||||||||||||||||
Equity Investees | — | 16 | — | 16 | 4 | — | 12 | — | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 755 | 968 | 361 | — | 607 | 0.14 | |||||||||||||||||||||||||||||
Other Items | — | — | — | 22 | 7 | — | 15 | — | |||||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 40 | — | (40 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 208 | $ | 374 | $ | 34 | $ | 2,859 | $ | 686 | 24.0 | % | $ | (3 | ) | $ | 2,176 | $ | 0.50 | ||||||||||||||||||
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 share3 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||
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) | 15 | 28 | 30 | 17 | (39) | — | 38 | 40 | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 15 | 27 | 63 | 3 | 10 | — | 1 | 2 |
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 29, 2017 | ||||||||||||||||||||||||||||||||
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) | $ | 27,898 | $ | 10,567 | $ | 17,331 | 62.1 | % | $ | 9,660 | $ | 1,491 | $ | 6,180 | 22.2 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (737 | ) | 737 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (355 | ) | 355 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | (3 | ) | 3 | — | (320 | ) | 323 | ||||||||||||||||||||||||
Other Items | 6 | (29 | ) | 35 | (1 | ) | (79 | ) | 115 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 27,904 | $ | 10,535 | $ | 17,369 | 62.2 | % | $ | 9,659 | $ | — | $ | 7,710 | 27.6 | % | ||||||||||||||||
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 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (14) | (17) | (12) | (17) | 80 | (15) | ||||||||||||||||||||||||||
% Currency Impact | (1) | 0 | (1) | (1) | — | (3) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (13) | (16) | (11) | (17) | — | (12) | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (14) | (18) | (12) | (17) | — | (3) | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (1) | 0 | (2) | (1) | — | (3) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (13) | (17) | (10) | (17) | — | (1) |
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 29, 2017 | |||||||||||||||||||||||||||||||||||||
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) | $ | 631 | $ | 883 | $ | (1,122 | ) | $ | 5,805 | $ | 1,805 | 31.1 | % | $ | 0 | $ | 4,000 | $ | 0.92 | ||||||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | 50 | 787 | 156 | — | 631 | 0.15 | |||||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 355 | 127 | — | 228 | 0.05 | |||||||||||||||||||||||||||||
Equity Investees | — | 37 | — | 37 | 9 | — | 28 | 0.01 | |||||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 1,228 | 1,551 | (172 | ) | — | 1,723 | 0.40 | ||||||||||||||||||||||||||||
Other Items | (38 | ) | — | (2 | ) | 151 | 50 | — | 101 | 0.02 | |||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 110 | — | (110 | ) | (0.03 | ) | |||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 593 | $ | 920 | $ | 154 | $ | 8,686 | $ | 2,085 | 24.0 | % | $ | 0 | $ | 6,601 | $ | 1.53 | |||||||||||||||||||
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 share3 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||
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) | 30 | 30 | (257) | (24) | 11 | (99) | (33) | (32) | |||||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 22 | 29 | 95 | (1) | 6 | (99) | (2) | (1) |
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 | 4,327 million average shares outstanding — diluted |
3 | 4,374 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 29, 2017 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | 17 | 40 | |||
% Currency Impact | (1) | (1) | |||
% Change — Currency Neutral (Non-GAAP) | 18 | 41 | |||
% Structural Impact | (24) | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | 43 | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | 14 | 38 | |||
% Change — Comparable (Non-GAAP) | 3 | 2 | |||
% Comparable Currency Impact (Non-GAAP) | 0 | 0 | |||
% Change — Comparable Currency Neutral (Non-GAAP) | 3 | 2 | |||
% Comparable Structural Impact (Non-GAAP) | (9) | — | |||
% Change — Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) | 12 | — | |||
Nine Months Ended September 29, 2017 | |||||
Income before income taxes | Diluted net income per share | ||||
% Change — Reported (GAAP) | (24) | (32) | |||
% Currency Impact | (1) | (1) | |||
% Change — Currency Neutral (Non-GAAP) | (23) | (31) | |||
% Structural Impact | (2) | — | |||
% Change — Currency Neutral (Structurally Adjusted) (Non-GAAP) | (21) | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (23) | (31) | |||
% Change — Comparable (Non-GAAP) | (1) | (1) | |||
% Comparable Currency Impact (Non-GAAP) | (2) | (2) | |||
% Change — Comparable Currency Neutral (Non-GAAP) | 1 | 0 | |||
% Comparable Structural Impact (Non-GAAP) | (6) | — | |||
% Change — Comparable Currency Neutral (Structurally Adjusted) (Non-GAAP) | 7 | — | |||
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net Operating Revenues by Operating Segment: | ||||||||||||||||||||||||||
Three Months Ended September 29, 2017 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,959 | $ | 1,035 | $ | 2,750 | $ | 1,432 | $ | 2,432 | $ | 48 | $ | (578 | ) | $ | 9,078 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Other Items | — | — | (12 | ) | — | — | (3 | ) | — | (15 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,959 | $ | 1,035 | $ | 2,738 | $ | 1,432 | $ | 2,432 | $ | 45 | $ | (578 | ) | $ | 9,063 | |||||||||
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: | ||||||||||||||||||||||||||
Other Items | — | — | (3 | ) | — | — | (4 | ) | — | (7 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,852 | $ | 965 | $ | 2,661 | $ | 1,460 | $ | 4,840 | $ | 43 | $ | (1,195 | ) | $ | 10,626 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | 6 | 7 | 3 | (2) | (50) | 3 | 52 | (15) | ||||||||||||||||||
% Currency Impact | 1 | 1 | 0 | (5) | 0 | 0 | — | 0 | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 5 | 6 | 3 | 3 | (50) | 4 | — | (14) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | 0 | 0 | 1 | 0 | (53) | 0 | — | (18) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 5 | 6 | 2 | 3 | 2 | 4 | — | 4 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | 6 | 7 | 3 | (2) | (50) | 7 | — | (15) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 1 | 1 | 0 | (5) | 0 | 3 | — | 0 | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 5 | 6 | 3 | 3 | (50) | 4 | — | (14) |
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 Operating Segment: | ||||||||||||||||||||||||||
Nine Months Ended September 29, 2017 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 5,628 | $ | 2,911 | $ | 8,015 | $ | 4,147 | $ | 9,337 | $ | 122 | $ | (2,262 | ) | $ | 27,898 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Other Items | — | — | (4 | ) | — | — | 10 | — | 6 | |||||||||||||||||
Comparable (Non-GAAP) | $ | 5,628 | $ | 2,911 | $ | 8,011 | $ | 4,147 | $ | 9,337 | $ | 132 | $ | (2,262 | ) | $ | 27,904 | |||||||||
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: | ||||||||||||||||||||||||||
Other Items | — | — | (11 | ) | — | — | 36 | — | 25 | |||||||||||||||||
Comparable (Non-GAAP) | $ | 5,633 | $ | 2,837 | $ | 7,726 | $ | 4,255 | $ | 15,747 | $ | 131 | $ | (3,850 | ) | $ | 32,479 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | 0 | 3 | 4 | (3) | (41) | 29 | 41 | (14) | ||||||||||||||||||
% Currency Impact | (3) | 0 | 0 | (3) | 0 | 23 | — | (1) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 3 | 2 | 4 | 1 | (41) | 5 | — | (13) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | (1) | 0 | 1 | 0 | (40) | 0 | — | (15) | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 4 | 3 | 2 | 1 | 0 | 5 | — | 2 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | 0 | 3 | 4 | (3) | (41) | 1 | — | (14) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | 0 | 0 | (3) | 0 | (3) | — | (1) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 3 | 2 | 4 | 1 | (41) | 4 | — | (13) |
Note: | Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Business Revenues (Non-GAAP): 1 | |||||
Three Months Ended September 29, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,078 | |||
Bottling Investments Net Operating Revenues | (2,432 | ) | |||
Consolidated Eliminations | 578 | ||||
Intersegment Core Net Operating Revenue Eliminations | (7 | ) | |||
Core Business Revenues (Non-GAAP) | 7,217 | ||||
Items Impacting Comparability: | |||||
Other Items | (15 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 7,202 | |||
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: | |||||
Other Items | (7 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,981 | |||
% Change — Reported (GAAP) Net Operating Revenues | (15) | ||||
% Change — Core Business Revenues (Non-GAAP) | 3 | ||||
% Core Business Currency Impact (Non-GAAP) | (1) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 4 | ||||
% Acquisitions, Divestitures and Structural Items | 0 | ||||
% Change — Core Business Organic Revenues (Non-GAAP)2 | 4 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | 3 | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | (1) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (Non-GAAP) | 4 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
(In millions) | |||||
Core Business Revenues (Non-GAAP): 1 | |||||
Nine Months Ended September 29, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 27,898 | |||
Bottling Investments Net Operating Revenues | (9,337 | ) | |||
Consolidated Eliminations | 2,262 | ||||
Intersegment Core Net Operating Revenue Eliminations | (14 | ) | |||
Core Business Revenues (Non-GAAP) | 20,809 | ||||
Items Impacting Comparability: | |||||
Other Items | 6 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 20,815 | |||
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: | |||||
Other Items | 25 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 20,569 | |||
% Change — Reported (GAAP) Net Operating Revenues | (14) | ||||
% Change — Core Business Revenues (Non-GAAP) | 1 | ||||
% Core Business Currency Impact (Non-GAAP) | (2) | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 3 | ||||
% Acquisitions, Divestitures and Structural Items | 0 | ||||
% Change — Core Business Organic Revenues (Non-GAAP)2 | 3 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | 1 | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | (2) | ||||
% Change — Comparable Currency Neutral Core Business Revenues (Non-GAAP) | 3 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Three Months Ended September 29, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 936 | $ | 563 | $ | 646 | $ | 577 | $ | (217 | ) | $ | (385 | ) | $ | 2,120 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | — | — | ||||||||||||||||
Productivity & Reinvestment | 6 | 2 | 47 | 1 | 15 | 58 | 129 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 213 | — | 213 | ||||||||||||||||
Other Items | — | — | 6 | — | (4 | ) | 20 | 22 | |||||||||||||||
Comparable (Non-GAAP) | $ | 942 | $ | 565 | $ | 699 | $ | 578 | $ | 7 | $ | (307 | ) | $ | 2,484 | ||||||||
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 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | 2 | 29 | (3) | (1) | — | 15 | (7) | ||||||||||||||||
% Currency Impact | 1 | 1 | 0 | (7) | — | 0 | (2) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 2 | 28 | (2) | 6 | — | 15 | (5) | ||||||||||||||||
% Change — Comparable (Non-GAAP) | 3 | 11 | 0 | (1) | (97) | 29 | 0 | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 1 | 1 | 0 | (7) | 1 | 0 | (1) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 2 | 10 | 1 | 7 | (98) | 28 | 1 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Nine Months Ended September 29, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 2,884 | $ | 1,625 | $ | 1,967 | $ | 1,835 | $ | (979 | ) | $ | (1,152 | ) | $ | 6,180 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 737 | — | 737 | ||||||||||||||||
Productivity & Reinvestment | 2 | 3 | 131 | 4 | 39 | 176 | 355 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 316 | 7 | 323 | ||||||||||||||||
Other Items | — | — | (9 | ) | — | 23 | 101 | 115 | |||||||||||||||
Comparable (Non-GAAP) | $ | 2,886 | $ | 1,628 | $ | 2,089 | $ | 1,839 | $ | 136 | $ | (868 | ) | $ | 7,710 | ||||||||
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 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | 0 | 11 | (1) | (3) | — | 3 | (15) | ||||||||||||||||
% Currency Impact | (3) | 0 | (1) | (5) | — | 2 | (3) | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 3 | 11 | 0 | 2 | — | 1 | (12) | ||||||||||||||||
% Change — Comparable (Non-GAAP) | (1) | 5 | 3 | (3) | (77) | 11 | (3) | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | 0 | (1) | (5) | 0 | 0 | (3) | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 3 | 5 | 4 | 2 | (77) | 11 | (1) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Operating Segment: | |||||||||||||||||||||||||||||
Three Months Ended September 29, 2017 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 962 | $ | 561 | $ | 583 | $ | 588 | $ | (673 | ) | $ | (347 | ) | $ | 1,674 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | — | 50 | 50 | ||||||||||||||||||||||
Productivity & Reinvestment | 6 | 2 | 47 | 1 | 15 | 58 | 129 | ||||||||||||||||||||||
Equity Investees | — | — | — | — | 14 | 2 | 16 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 72 | — | 975 | (79 | ) | 968 | |||||||||||||||||||||
Other Items | — | — | 6 | — | (4 | ) | 20 | 22 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 968 | $ | 563 | $ | 708 | $ | 589 | $ | 327 | $ | (296 | ) | $ | 2,859 | ||||||||||||||
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 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | 4 | 25 | (11) | 0 | 8 | 23 | 17 | ||||||||||||||||||||||
% Currency Impact | 1 | 1 | 0 | (7) | 0 | 4 | (1) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 4 | 25 | (10) | 7 | 8 | 18 | 18 | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | 18 | (11) | 0 | 36 | (5) | 14 | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 5 | 8 | 1 | 0 | (27) | 27 | 3 | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 1 | 1 | 0 | (7) | 2 | 5 | 0 | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 4 | 7 | 1 | 7 | (29) | 22 | 3 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes by Operating Segment: | |||||||||||||||||||||||||||||
Nine Months Ended September 29, 2017 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 2,958 | $ | 1,627 | $ | 1,711 | $ | 1,853 | $ | (1,730 | ) | $ | (614 | ) | $ | 5,805 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 737 | 50 | 787 | ||||||||||||||||||||||
Productivity & Reinvestment | 2 | 3 | 131 | 4 | 39 | 176 | 355 | ||||||||||||||||||||||
Equity Investees | 4 | — | — | — | 29 | 4 | 37 | ||||||||||||||||||||||
Transaction Gains/Losses | — | — | 287 | — | 1,789 | (525 | ) | 1,551 | |||||||||||||||||||||
Other Items | — | — | (9 | ) | — | 23 | 137 | 151 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 2,964 | $ | 1,630 | $ | 2,120 | $ | 1,857 | $ | 887 | $ | (772 | ) | $ | 8,686 | ||||||||||||||
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 | ||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
% Change — Reported (GAAP) | 0 | 10 | (14) | (3) | (93) | — | (24) | ||||||||||||||||||||||
% Currency Impact | (3) | 0 | (1) | (5) | 0 | — | (1) | ||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 4 | 10 | (12) | 3 | (93) | — | (23) | ||||||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | 5 | (17) | 0 | (70) | (414) | (23) | ||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 0 | 5 | 4 | (2) | (23) | 10 | (1) | ||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (3) | 0 | (1) | (5) | 1 | 7 | (2) | ||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 4 | 5 | 5 | 3 | (23) | 2 | 1 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||
(UNAUDITED) | ||||||
(In millions) | ||||||
Operating Margin: | ||||||
Three Months Ended September 29, 2017 | Three Months Ended September 30, 2016 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 23.35 | % | 21.36 | % | 199 | |
Items Impacting Comparability (Non-GAAP) | (4.05 | )% | (2.00 | )% | ||
Comparable Operating Margin (Non-GAAP) | 27.40 | % | 23.36 | % | 404 | |
Nine Months Ended September 29, 2017 | Nine Months Ended September 30, 2016 | Basis Point Growth (Decline) | ||||
Reported (GAAP) | 22.15 | % | 22.40 | % | (25 | ) |
Items Impacting Comparability (Non-GAAP) | (5.48 | )% | (2.17 | )% | ||
Comparable Operating Margin (Non-GAAP) | 27.63 | % | 24.57 | % | 306 |
Purchases and Issuances of Stock: | ||||||||||
Nine Months Ended September 29, 2017 | Nine Months Ended September 30, 2016 | |||||||||
Reported (GAAP): | ||||||||||
Issuances of Stock | $ | 1,320 | $ | 1,295 | ||||||
Purchases of Stock for Treasury | (3,087 | ) | (2,509 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (4 | ) | (2 | ) | ||||||
Net Change in Treasury Stock Payables2 | 67 | 12 | ||||||||
Net Share Repurchases (Non-GAAP) | $ | (1,704 | ) | $ | (1,204 | ) |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||
(UNAUDITED) | ||||||||||
(In millions) | ||||||||||
Consolidated Cash from Operations: | ||||||||||
Nine Months Ended September 29, 2017 | Nine Months Ended September 30, 2016 | |||||||||
Net Cash Provided by Operating Activities | Net Cash Provided by Operating Activities | |||||||||
Reported (GAAP): | $ | 5,918 | $ | 6,723 | ||||||
Items Impacting Comparability: | ||||||||||
Cash Payments for Pension Plan Contributions | 34 | 471 | ||||||||
Comparable (Non-GAAP) | $ | 5,952 | $ | 7,194 | ||||||
Net Cash Provided by Operating Activities | ||||||||||
% Change — Reported (GAAP) | (12) | |||||||||
% Change — Comparable (Non-GAAP) | (17) |
Free Cash Flow: | ||||||||||||||||
Nine Months Ended September 29, 2017 | Nine Months Ended September 30, 2016 | % Change | ||||||||||||||
Net Cash Provided by Operating Activities | $ | 5,918 | $ | 6,723 | (12 | ) | ||||||||||
Purchases of Property, Plant and Equipment | (1,194 | ) | (1,561 | ) | (24 | ) | ||||||||||
Free Cash Flow (Non-GAAP) | $ | 4,724 | $ | 5,162 | (8 | ) |