Highlights |
Quarterly Performance |
• | Revenues: Net revenues declined 16% to $7.6 billion for the quarter, impacted by a 26% headwind from refranchising of bottling territories. Organic revenues (non-GAAP) grew 5% for the quarter, driven by concentrate sales growth of 4% and price/mix growth of 1%. |
• | Volume: Total unit case volume grew 3%, with growth across all category clusters and geographic operating groups. Trademark Coca-Cola was the largest contributor, with a clear acceleration in all brands under the trademark. |
• | Margin: Operating margin, which included items impacting comparability, grew over 220 basis points. Comparable operating margin (non-GAAP) expanded 600 basis points, driven by divestitures of lower-margin bottling businesses and the company's ongoing productivity efforts, partially offset by the adoption of the new revenue recognition accounting standard. |
• | Market Share: The company continued to gain value share in total nonalcoholic ready-to-drink ("NARTD") beverages. |
• | Cash Flow: Cash from operations for the quarter was $613 million, down 20% primarily due to the refranchising of North American bottling territories and the impact of one less day in the quarter. Free cash flow (non-GAAP) was $339 million, up 5% driven by reduced capital investment needs. |
• | Share Repurchases: Purchases of stock for treasury for the quarter were $927 million. Net share repurchases (non-GAAP) totaled $471 million. |
Company Updates |
• | Leveraging the strength of leader brands: The company continued to capitalize on its leadership position in sparkling soft drinks. A consistent focus on the One Brand Strategy for Trademark Coca-Cola led to 4% volume growth, fueled by 3% growth in brand Coca-Cola and double-digit growth in Coca-Cola Zero Sugar. This performance, along with driving profitability within sparkling through revenue growth management initiatives, led to 6% growth in global retail value for Trademark Coca-Cola. |
• | Expanding presence in on-trend categories: After the recent acquisition of the U.S. rights to Topo Chico premium sparkling mineral water, the company was able to extend the brand's reach through increased distribution, while preserving its strong heritage. The brand grew its U.S. retail value over 30% during the quarter and gained value share in the fast-growing sparkling water category. |
• | Innovation within iconic brands: Diet Coke returned to volume growth in North America during the quarter, following a full brand restage. The introduction of four bold, new flavors, along with contemporary, sleek packaging and innovative marketing, helped lift the performance of the brand. |
• | Scaling successful brands rapidly: During the quarter, the company leveraged its strength in distribution to lift, shift and scale leading brands around the world. Fuze Tea, which was already available in 49 countries, was introduced in an additional 37 countries across Europe, featuring new herb and fruit-infused flavors with fewer calories. The single-day launch of Fuze Tea in Europe was executed on a scale that was unprecedented in the company’s history. |
Operating Review – Three Months Ended March 30, 2018 |
Percent Change | Concentrate Sales1 | Price/Mix | Currency Impact | Acquisitions, Divestitures, and Structural Items, Net | Accounting Changes2 | Reported Net Revenues | Organic Revenues3 | Unit Case Volume | ||
Consolidated | 4 | 1 | 2 | (26) | 3 | (16) | 5 | 3 | ||
Europe, Middle East & Africa | 9 | (1) | 7 | 0 | (2) | 13 | 8 | 4 | ||
Latin America | 0 | 6 | 1 | 0 | 1 | 8 | 6 | 1 | ||
North America | 2 | (1) | 0 | (1) | 11 | 11 | 1 | 2 | ||
Asia Pacific | 5 | (2) | 4 | (1) | (5) | 1 | 3 | 5 | ||
Bottling Investments | 12 | 2 | 1 | (90) | 3 | (73) | 13 | (32) |
Percent Change | Reported Operating Income | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral3 | Structural Items | Accounting Changes2 | Comparable Currency Neutral (Adjusted for Structural Items and Accounting Changes)3 |
Consolidated | (8) | (12) | 2 | 2 | (6) | 0 | 9 |
Europe, Middle East & Africa | 6 | 0 | 3 | 3 | |||
Latin America | 13 | 0 | 0 | 13 | |||
North America | (7) | (2) | 0 | (5) | |||
Asia Pacific | 4 | 0 | 2 | 2 | |||
Bottling Investments | (419) | — | — | — | |||
Percent Change | Reported EPS from Continuing Operations | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral3 | |||
Consolidated | 13 | 5 | 2 | 6 |
Consolidated |
• | Price/mix grew 1% in the quarter as solid pricing in the marketplace was partially offset by timing. Concentrate sales grew ahead of unit case volume, largely due to the timing of shipments, particularly in the emerging markets. |
• | Unit case volume grew 3% for the quarter. Category cluster performance was as follows: |
◦ | Sparkling soft drinks: 4% |
◦ | Juice, dairy and plant-based beverages: 3% |
◦ | Water, enhanced water and sports drinks: 1% |
◦ | Tea and coffee: 5% |
• | Operating income was impacted by comparability items, predominantly charges associated with the refranchising of bottling territories in North America. Results were also impacted by structural items related to refranchising. Growth in comparable currency neutral operating income (adjusted for structural items and accounting changes) (non-GAAP) was driven by organic revenue (non-GAAP) growth and the benefit from ongoing productivity initiatives. |
Europe, Middle East & Africa |
• | Price/mix declined 1% for the quarter, as positive pricing in the marketplace was offset by negative geographic mix due to growth in emerging and developing markets outpacing developed markets. Concentrate sales grew 5 points ahead of unit case volume due to the timing of shipments in the majority of business units. |
• | Unit case volume grew 4% in the quarter, led by strong performance in Turkey and South Africa, partially offset by declines in Nigeria and Western Europe. |
• | Operating income growth trailed revenue growth, largely due to a less favorable currency impact to operating income compared to revenue in addition to increased marketing investments related to the Fuze Tea launch. Product mix also impacted the quarter due to continued strong growth in innocent, a finished goods business. |
• | The company gained value share in the juice, dairy and plant-based beverages cluster. |
Latin America |
• | Price/mix growth of 6% for the quarter was primarily driven by strong price/mix in Mexico and the South Latin business unit. |
• | Unit case volume grew 1% in the quarter, as low to mid single-digit growth in Brazil, Argentina and Mexico was partially offset by declines in Peru and Chile. |
• | Operating income growth during the quarter was driven by solid pricing in the marketplace in addition to productivity initiatives. |
• | The company gained or maintained value share in sparkling soft drinks as well as the juice, dairy and plant-based beverages and water, enhanced water and sports drink clusters. |
North America |
• | Price/mix declined 1% for the quarter as low single-digit underlying pricing was offset by the cycling of certain product launches, incremental freight costs, and the timing of the Easter holiday. |
• | Unit case volume grew 2% for the quarter. Sparkling soft drinks growth of 3% included double-digit growth in Coca-Cola Zero Sugar, along with positive performance in Diet Coke. Juice, dairy and plant-based beverages declined 2%, as growth in dairy and plant-based beverages was offset by a decline in juice, largely due to deprioritizing lower-margin juice drink brands and to package re-sizing across the juice portfolio. Tea and coffee grew 5%. Water, enhanced water and sports drinks grew 1%, which included strong growth in the sparkling water portfolio driven by double-digit growth in smartwater sparkling and Dasani sparkling, in addition to the strong performance of Topo Chico. |
• | Operating income for the quarter was unfavorably impacted by a 6-point headwind from cycling the benefit of intercompany profit elimination in the prior year related to the refranchising of North American bottling operations. |
• | The company gained or maintained value share in total NARTD beverages, along with all category clusters. |
Asia Pacific |
• | Price/mix declined 2% for the quarter, largely driven by negative geographic mix as growth in China and India outpaced more developed markets, including Japan and Australia. |
• | Unit case volume growth of 5% for the quarter was driven by strong performance in China and India, partially offset by a low single-digit decline in Southeast Asia. |
• | Operating income growth outpaced revenue growth for the quarter, largely driven by favorable product mix as sparkling soft drinks grew volume double digits in China and India. |
• | The company gained or maintained value share in total NARTD beverages along with sparkling soft drinks and the juice, dairy and plant-based beverages cluster. |
Bottling Investments |
• | Price/mix growth of 2% for the quarter was largely driven by strong performance in India. |
• | The operating loss for the quarter was largely driven by items impacting comparability. Comparable currency neutral operating loss (non-GAAP) was unfavorably impacted by the refranchising of North American bottling territories and the deconsolidation of previously held bottling operations in China. |
Outlook |
• | Approximately 4% growth in organic revenues (non-GAAP) – No Change |
• | 8% to 9% growth in comparable currency neutral operating income (adjusted for structural items and accounting changes) (non-GAAP) – No Change |
• | Comparable net revenues (non-GAAP): 1% tailwind based on the current rates and including the impact of hedged positions – No Change |
• | Comparable operating income (non-GAAP): 0% to 1% headwind based on the current rates and including the impact of hedged positions – No Change |
• | Comparable net revenues (non-GAAP): 17% headwind from acquisitions, divestitures and structural items – No Change |
• | Comparable net revenues (non-GAAP): 1% to 2% tailwind from accounting changes – No Change |
• | Comparable operating income (non-GAAP): 2% structural headwind – No Change |
• | Comparable operating income (non-GAAP): 0% impact from accounting changes – No Change |
• | Underlying effective tax rate (non-GAAP): Estimated to be 21% – No Change |
• | Cash from operations of at least $8.5 billion – No Change |
• | Capital expenditures (excluding discontinued operations): Approximately $1.9 billion – No Change |
• | Net share repurchases (non-GAAP): Approximately $1.0 billion – No Change |
• | Comparable EPS from continuing operations (non-GAAP): 8% to 10% growth versus $1.91 in 2017 – No Change |
• | Comparable net revenues (non-GAAP): 16% headwind from acquisitions, divestitures and structural items; 1% currency tailwind based on the current rates and including the impact of hedged positions; 1% to 2% tailwind from accounting changes. |
• | Comparable operating income (non-GAAP): 4% to 5% structural headwind; 1% currency headwind based on the current rates and including the impact of hedged positions; 2% headwind from accounting changes. |
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 net operating 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 2018 financial results were impacted by one less day, and fourth quarter 2018 financial results will be impacted by one additional day as compared to the same periods in 2017. Unit case volume results for the quarters are not impacted by the 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 | ||||||||||
March 30, 2018 | March 31, 2017 | % Change | ||||||||
Net Operating Revenues | $ | 7,626 | $ | 9,118 | (16 | ) | ||||
Cost of goods sold | 2,738 | 3,513 | (22 | ) | ||||||
Gross Profit | 4,888 | 5,605 | (13 | ) | ||||||
Selling, general and administrative expenses | 2,541 | 3,352 | (24 | ) | ||||||
Other operating charges | 536 | 290 | 85 | |||||||
Operating Income | 1,811 | 1,963 | (8 | ) | ||||||
Interest income | 165 | 155 | 7 | |||||||
Interest expense | 230 | 192 | 20 | |||||||
Equity income (loss) — net | 142 | 116 | 23 | |||||||
Other income (loss) — net | (55 | ) | (535 | ) | 90 | |||||
Income from Continuing Operations Before Income Taxes | 1,833 | 1,507 | 22 | |||||||
Income taxes from continuing operations | 506 | 323 | 57 | |||||||
Net Income from Continuing Operations | 1,327 | 1,184 | 12 | |||||||
Income from discontinued operations (net of income taxes of $40 and $0, respectively) | 73 | — | — | |||||||
Consolidated Net Income | 1,400 | 1,184 | 18 | |||||||
Less: Net income attributable to noncontrolling interests | 32 | 2 | 1,406 | |||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,368 | $ | 1,182 | 16 | |||||
Basic net income per share from continuing operations1 | $ | 0.31 | $ | 0.28 | 13 | |||||
Basic net income per share from discontinued operations2 | 0.01 | — | — | |||||||
Basic Net Income Per Share | $ | 0.32 | $ | 0.28 | 16 | |||||
Average Shares Outstanding — Basic | 4,265 | 4,287 | ||||||||
Diluted net income per share from continuing operations1 | $ | 0.31 | $ | 0.27 | 13 | |||||
Diluted net income per share from discontinued operations2 | 0.01 | — | — | |||||||
Diluted Net Income Per Share | $ | 0.32 | $ | 0.27 | 16 | |||||
Average Shares Outstanding — Diluted | 4,306 | 4,334 | ||||||||
1 | Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests. |
2 | Calculated based on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Balance Sheets | |||||||
(UNAUDITED) | |||||||
(In millions except par value) | |||||||
March 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 8,291 | $ | 6,006 | |||
Short-term investments | 7,518 | 9,352 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 15,809 | 15,358 | |||||
Marketable securities | 5,564 | 5,317 | |||||
Trade accounts receivable, less allowances of $479 and $477, respectively | 3,904 | 3,667 | |||||
Inventories | 2,937 | 2,655 | |||||
Prepaid expenses and other assets | 2,449 | 2,000 | |||||
Assets held for sale | 213 | 219 | |||||
Assets held for sale — discontinued operations | 7,166 | 7,329 | |||||
Total Current Assets | 38,042 | 36,545 | |||||
Equity Method Investments | 21,478 | 20,856 | |||||
Other Investments | 1,039 | 1,096 | |||||
Other Assets | 4,428 | 4,230 | |||||
Deferred Income Tax Assets | 3,298 | 330 | |||||
Property, Plant and Equipment — net | 7,977 | 8,203 | |||||
Trademarks With Indefinite Lives | 6,753 | 6,729 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 53 | 138 | |||||
Goodwill | 9,908 | 9,401 | |||||
Other Intangible Assets | 306 | 368 | |||||
Total Assets | $ | 93,282 | $ | 87,896 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,218 | $ | 8,748 | |||
Loans and notes payable | 14,785 | 13,205 | |||||
Current maturities of long-term debt | 4,370 | 3,298 | |||||
Accrued income taxes | 579 | 410 | |||||
Liabilities held for sale | 33 | 37 | |||||
Liabilities held for sale — discontinued operations | 1,495 | 1,496 | |||||
Total Current Liabilities | 31,480 | 27,194 | |||||
Long-Term Debt | 29,792 | 31,182 | |||||
Other Liabilities | 8,079 | 8,021 | |||||
Deferred Income Tax Liabilities | 2,314 | 2,522 | |||||
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 | 16,006 | 15,864 | |||||
Reinvested earnings | 63,150 | 60,430 | |||||
Accumulated other comprehensive income (loss) | (10,038 | ) | (10,305 | ) | |||
Treasury stock, at cost — 2,781 and 2,781 shares, respectively | (51,268 | ) | (50,677 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 19,610 | 17,072 | |||||
Equity Attributable to Noncontrolling Interests | 2,007 | 1,905 | |||||
Total Equity | 21,617 | 18,977 | |||||
Total Liabilities and Equity | $ | 93,282 | $ | 87,896 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Three Months Ended | |||||||
Operating Activities | March 30, 2018 | March 31, 2017 | |||||
Consolidated net income | $ | 1,400 | $ | 1,184 | |||
(Income) loss from discontinued operations | (73 | ) | — | ||||
Net income from continuing operations | 1,327 | 1,184 | |||||
Depreciation and amortization | 270 | 328 | |||||
Stock-based compensation expense | 72 | 55 | |||||
Deferred income taxes | (199 | ) | (34 | ) | |||
Equity (income) loss — net of dividends | (43 | ) | (89 | ) | |||
(Gain) loss on equity securities | 85 | — | |||||
Foreign currency adjustments | (19 | ) | 72 | ||||
Significant (gains) losses on sales of assets — net | 34 | 497 | |||||
Other operating charges | 510 | 269 | |||||
Other items | (112 | ) | 16 | ||||
Net change in operating assets and liabilities | (1,312 | ) | (1,534 | ) | |||
Net cash provided by operating activities | 613 | 764 | |||||
Investing Activities | |||||||
Purchases of investments | (2,669 | ) | (3,731 | ) | |||
Proceeds from disposals of investments | 4,379 | 4,362 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (183 | ) | (337 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 3 | 1,430 | |||||
Purchases of property, plant and equipment | (274 | ) | (442 | ) | |||
Proceeds from disposals of property, plant and equipment | 43 | 18 | |||||
Other investing activities | 22 | 31 | |||||
Net cash provided by (used in) investing activities | 1,321 | 1,331 | |||||
Financing Activities | |||||||
Issuances of debt | 9,576 | 11,704 | |||||
Payments of debt | (8,770 | ) | (9,223 | ) | |||
Issuances of stock | 477 | 394 | |||||
Purchases of stock for treasury | (927 | ) | (1,304 | ) | |||
Other financing activities | (72 | ) | (36 | ) | |||
Net cash provided by (used in) financing activities | 284 | 1,535 | |||||
Cash Flows from Discontinued Operations | |||||||
Net cash provided by (used in) operating activities | 46 | — | |||||
Net cash provided by (used in) investing activities | (24 | ) | — | ||||
Net cash provided by (used in) financing activities | 40 | — | |||||
Net cash provided by (used in) discontinued operations | 62 | — | |||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 95 | 202 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | |||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 2,375 | 3,832 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 6,373 | 8,850 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 8,748 | 12,682 | |||||
Less: Restricted cash and restricted cash equivalents at end of period | 457 | 562 | |||||
Cash and cash equivalents at end of period | $ | 8,291 | $ | 12,120 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues 1 | Operating Income (Loss) | Income (Loss) from Continuing Operations Before Income Taxes | |||||||||||||||||||||||||||||||
March 30, 2018 | March 31, 2017 | % Fav. / (Unfav.) | March 30, 2018 | March 31, 2017 | % Fav. / (Unfav.) | March 30, 2018 | March 31, 2017 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,841 | $ | 1,632 | 13 | $ | 914 | $ | 860 | 6 | $ | 927 | $ | 885 | 5 | ||||||||||||||||||
Latin America | 998 | 926 | 8 | 572 | 505 | 13 | 566 | 507 | 12 | ||||||||||||||||||||||||
North America | 2,680 | 2,417 | 11 | 531 | 574 | (7 | ) | 531 | 477 | 11 | |||||||||||||||||||||||
Asia Pacific | 1,218 | 1,208 | 1 | 565 | 541 | 4 | 574 | 549 | 5 | ||||||||||||||||||||||||
Bottling Investments | 1,051 | 3,836 | (73 | ) | (461 | ) | (89 | ) | (419 | ) | (388 | ) | (546 | ) | 29 | ||||||||||||||||||
Corporate | 18 | 29 | (39 | ) | (310 | ) | (428 | ) | 28 | (377 | ) | (365 | ) | (3 | ) | ||||||||||||||||||
Eliminations | (180 | ) | (930 | ) | 81 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 7,626 | $ | 9,118 | (16 | ) | $ | 1,811 | $ | 1,963 | (8 | ) | $ | 1,833 | $ | 1,507 | 22 |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Accounting changes" refer to the adoption of Accounting Standards Codification ("ASC 606"), Revenue from Contracts with Customers, which was adopted by the Company effective January 1, 2018. |
• | "Currency neutral operating results" are determined by dividing or multiplying, as appropriate, our current period actual U.S. dollar operating results, 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 2018, the Company acquired a controlling interest in the Oman bottler. The impact of this acquisition has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for the Bottling Investments operating segment. In 2017, the Company refranchised bottling territories in North America to certain of its unconsolidated bottling partners. The impact of these transactions has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for the North America and Bottling Investments operating segments. 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. These transactions were also included as structural items in our analysis of comparable currency neutral operating income (adjusted for structural items and accounting changes) (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 2018 versus 2017 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 operating margin" and "comparable operating income" are non-GAAP financial measures that exclude or have otherwise been adjusted for items impacting comparability (discussed further below). "Comparable currency neutral operating income" and "comparable currency neutral operating income (adjusted for structural items and accounting changes)" 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 operating income (adjusted for structural items and accounting changes) (non-GAAP) has also been adjusted for structural changes and accounting 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 operating income (non-GAAP) growth, comparable currency neutral operating income (non-GAAP) growth and comparable currency neutral operating income (adjusted for structural items and accounting changes) (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 from continuing operations" and "comparable currency neutral EPS from continuing operations" are non-GAAP financial measures that exclude or have otherwise been adjusted for items impacting comparability |
• | "Underlying effective tax rate" is a non-GAAP financial measure that represents the estimated annual effective income tax rate on income from continuing operations before income taxes, which 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) |
• | "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) | ||||||||||||||||||||||||||||||||
(In millions except per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended March 30, 2018 | ||||||||||||||||||||||||||||||||
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) | $ | 7,626 | $ | 2,738 | $ | 4,888 | 64.1 | % | $ | 2,541 | $ | 536 | $ | 1,811 | 23.7 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (390 | ) | 390 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (95 | ) | 95 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (45 | ) | 45 | |||||||||||||||||||||||||
Other Items | (2 | ) | 9 | (11 | ) | (1 | ) | (6 | ) | (4 | ) | |||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 7,624 | $ | 2,747 | $ | 4,877 | 64.0 | % | $ | 2,540 | $ | — | $ | 2,337 | 30.7 | % | ||||||||||||||||
Three Months Ended March 31, 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) | $ | 9,118 | $ | 3,513 | $ | 5,605 | 61.5 | % | $ | 3,352 | $ | 290 | $ | 1,963 | 21.5 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | (84 | ) | 84 | |||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | — | (139 | ) | 139 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | (3 | ) | 3 | — | (41 | ) | 44 | ||||||||||||||||||||||||
Other Items | 14 | 21 | (7 | ) | (3 | ) | (26 | ) | 22 | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 9,132 | $ | 3,531 | $ | 5,601 | 61.3 | % | $ | 3,349 | $ | — | $ | 2,252 | 24.7 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | (16) | (22) | (13) | (24) | 85 | (8) | ||||||||||||||||||||||||||
% Currency Impact | 2 | 2 | 2 | 2 | — | 2 | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | (19) | (24) | (15) | (27) | — | (10) | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | (17) | (22) | (13) | (24) | — | 4 | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 2 | 2 | 2 | 2 | — | 2 | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | (19) | (24) | (15) | (27) | — | 2 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions except per share data) | |||||||||||||||||||||||||||||||||
Three Months Ended March 30, 2018 | |||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income from continuing operations before income taxes | Income taxes from continuing operations | 1 | Effective tax rate | Net income from continuing operations | Diluted net income per share from continuing operations | 2 | ||||||||||||||||||||||||
Reported (GAAP) | $ | 230 | $ | 142 | $ | (55 | ) | $ | 1,833 | $ | 506 | 27.6 | % | $ | 1,327 | $ | 0.31 | 4 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 390 | 100 | 290 | 0.07 | ||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 95 | 23 | 72 | 0.02 | ||||||||||||||||||||||||||
Equity Investees | — | 51 | — | 51 | (5 | ) | 56 | 0.01 | |||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 54 | 99 | 17 | 82 | 0.02 | ||||||||||||||||||||||||||
Other Items | — | — | 97 | 93 | 23 | 70 | 0.02 | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | (126 | ) | 126 | 0.03 | |||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 230 | $ | 193 | $ | 96 | $ | 2,561 | $ | 538 | 21.0 | % | $ | 2,023 | $ | 0.47 | 4 | ||||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income from continuing operations before income taxes | Income taxes from continuing operations | 1 | Effective tax rate | Net income from continuing operations | Diluted net income per share from continuing operations | 3 | ||||||||||||||||||||||||
Reported (GAAP) | $ | 192 | $ | 116 | $ | (535 | ) | $ | 1,507 | $ | 323 | 21.4 | % | $ | 1,184 | $ | 0.27 | 4 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | 84 | — | 84 | 0.02 | ||||||||||||||||||||||||||
Productivity & Reinvestment | — | — | — | 139 | 52 | 87 | 0.02 | ||||||||||||||||||||||||||
Equity Investees | — | 58 | — | 58 | 15 | 43 | 0.01 | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 621 | 665 | 174 | 491 | 0.11 | ||||||||||||||||||||||||||
Other Items | — | — | — | 22 | — | 22 | 0.01 | ||||||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 30 | (30 | ) | (0.01 | ) | ||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 192 | $ | 174 | $ | 86 | $ | 2,475 | $ | 594 | 24.0 | % | $ | 1,881 | $ | 0.43 | 4 | ||||||||||||||||
Interest expense | Equity income (loss) — net | Other income (loss) — net | Income from continuing operations before income taxes | Income taxes from continuing operations | Net income from continuing operations | Diluted net income per share from continuing operations | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 20 | 23 | 90 | 22 | 57 | 12 | 13 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 20 | 12 | 10 | 3 | (9) | 8 | 8 |
1 | The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability with the exception of certain tax matters previously discussed. |
2 | 4,306 million average shares outstanding — diluted |
3 | 4,334 million average shares outstanding — diluted |
4 | Calculated based on net income from continuing operations less net income attributable to noncontrolling interests from continuing operations of $2 million for both the three months ended March 30, 2018 and March 31, 2017. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
(UNAUDITED) | |||||
Operating Income and Diluted Net Income Per Share from Continuing Operations: | |||||
Three Months Ended March 30, 2018 | |||||
Operating income | Diluted net income per share from continuing operations | ||||
% Change — Reported (GAAP) | (8) | 13 | |||
% Currency Impact | 2 | 2 | |||
% Change — Currency Neutral (Non-GAAP) | (10) | 11 | |||
% Structural Impact | (6) | — | |||
% Change — Currency Neutral (Adjusted for Structural Items) (Non-GAAP) | (3) | — | |||
% Impact of Accounting Changes1 | 0 | — | |||
% Change — Currency Neutral (Adjusted for Structural Items and Accounting Changes) (Non-GAAP) | (3) | — | |||
% Impact of Items Impacting Comparability (Non-GAAP) | (12) | 5 | |||
% Change — Comparable (Non-GAAP) | 4 | 8 | |||
% Comparable Currency Impact (Non-GAAP) | 2 | 2 | |||
% Change — Comparable Currency Neutral (Non-GAAP) | 2 | 6 | |||
% Comparable Structural Impact (Non-GAAP) | (6) | — | |||
% Change — Comparable Currency Neutral (Adjusted for Structural Items) (Non-GAAP) | 8 | — | |||
% Comparable Impact of Accounting Changes (Non-GAAP)1 | 0 | — | |||
% Change — Comparable Currency Neutral (Adjusted for Structural Items and Accounting Changes) (Non-GAAP) | 9 | — |
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 March 30, 2018 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,841 | $ | 998 | $ | 2,680 | $ | 1,218 | $ | 1,051 | $ | 18 | $ | (180 | ) | $ | 7,626 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Other Items | — | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
Comparable (Non-GAAP) | $ | 1,841 | $ | 998 | $ | 2,680 | $ | 1,218 | $ | 1,051 | $ | 16 | $ | (180 | ) | $ | 7,624 | |||||||||
Three Months Ended March 31, 2017 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 1,632 | $ | 926 | $ | 2,417 | $ | 1,208 | $ | 3,836 | $ | 29 | $ | (930 | ) | $ | 9,118 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Other Items | — | — | 5 | — | — | 9 | — | 14 | ||||||||||||||||||
Comparable (Non-GAAP) | $ | 1,632 | $ | 926 | $ | 2,422 | $ | 1,208 | $ | 3,836 | $ | 38 | $ | (930 | ) | $ | 9,132 | |||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | 13 | 8 | 11 | 1 | (73) | (39) | 81 | (16) | ||||||||||||||||||
% Currency Impact | 7 | 1 | 0 | 4 | 1 | 36 | — | 2 | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 6 | 7 | 11 | (3) | (74) | (75) | — | (19) | ||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | 0 | 0 | (1) | (1) | (90) | 0 | — | (26) | ||||||||||||||||||
% Impact of Accounting Changes1 | (2) | 1 | 11 | (5) | 3 | (9) | — | 3 | ||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 8 | 6 | 1 | 3 | 13 | (66) | — | 5 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | 13 | 8 | 11 | 1 | (73) | (57) | — | (17) | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 7 | 1 | 0 | 4 | 1 | 1 | — | 2 | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 6 | 7 | 10 | (3) | (74) | (58) | — | (19) |
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 March 30, 2018 | |||||
Reported (GAAP) Net Operating Revenues | $ | 7,626 | |||
Bottling Investments Net Operating Revenues | (1,051 | ) | |||
Consolidated Eliminations | 180 | ||||
Intersegment Core Net Operating Revenue Eliminations | (5 | ) | |||
Core Business Revenues (Non-GAAP) | 6,750 | ||||
Items Impacting Comparability: | |||||
Other Items | (2 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,748 | |||
Three Months Ended March 31, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,118 | |||
Bottling Investments Net Operating Revenues | (3,836 | ) | |||
Consolidated Eliminations | 930 | ||||
Intersegment Core Net Operating Revenue Eliminations | (3 | ) | |||
Core Business Revenues (Non-GAAP) | 6,209 | ||||
Items Impacting Comparability: | |||||
Other Items | 14 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,223 | |||
% Change — Reported (GAAP) Net Operating Revenues | (16) | ||||
% Change — Core Business Revenues (Non-GAAP) | 9 | ||||
% Core Business Currency Impact (Non-GAAP) | 3 | ||||
% Change — Currency Neutral Core Business Revenues (Non-GAAP) | 6 | ||||
% Acquisitions, Divestitures and Structural Items | (1) | ||||
% Impact of Accounting Changes2 | 3 | ||||
% Change — Core Business Organic Revenues (Non-GAAP)3 | 4 | ||||
% Change — Comparable Core Business Revenues (Non-GAAP) | 8 | ||||
% Comparable Core Business Currency Impact (Non-GAAP) | 3 | ||||
% Change — Comparable Currency Neutral Core Business Revenues (Non-GAAP) | 6 |
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 March 30, 2018 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 914 | $ | 572 | $ | 531 | $ | 565 | $ | (461 | ) | $ | (310 | ) | $ | 1,811 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 390 | — | 390 | ||||||||||||||||
Productivity & Reinvestment | 2 | 2 | 52 | — | 6 | 33 | 95 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 45 | — | 45 | ||||||||||||||||
Other Items | — | — | (19 | ) | — | 10 | 5 | (4 | ) | ||||||||||||||
Comparable (Non-GAAP) | $ | 916 | $ | 574 | $ | 564 | $ | 565 | $ | (10 | ) | $ | (272 | ) | $ | 2,337 | |||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 860 | $ | 505 | $ | 574 | $ | 541 | $ | (89 | ) | $ | (428 | ) | $ | 1,963 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 84 | — | 84 | ||||||||||||||||
Productivity & Reinvestment | 2 | — | 35 | 1 | 14 | 87 | 139 | ||||||||||||||||
Equity Investees | — | — | — | — | — | — | — | ||||||||||||||||
Transaction Gains/Losses | — | — | — | — | 42 | 2 | 44 | ||||||||||||||||
Other Items | — | — | (10 | ) | — | (3 | ) | 35 | 22 | ||||||||||||||
Comparable (Non-GAAP) | $ | 862 | $ | 505 | $ | 599 | $ | 542 | $ | 48 | $ | (304 | ) | $ | 2,252 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
% Change — Reported (GAAP) | 6 | 13 | (7) | 4 | (419) | 28 | (8) | ||||||||||||||||
% Currency Impact | 3 | 0 | 0 | 2 | (13) | 2 | 2 | ||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 3 | 13 | (7) | 2 | (405) | 25 | (10) | ||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | 0 | (2) | 0 | — | 17 | (12) | ||||||||||||||||
% Change — Comparable (Non-GAAP) | 6 | 13 | (6) | 4 | — | 10 | 4 | ||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | 3 | 0 | 0 | 2 | — | 0 | 2 | ||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 3 | 13 | (5) | 2 | — | 11 | 2 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | |||||||||||||||||||||||||||||
Three Months Ended March 30, 2018 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||||||
Reported (GAAP) | $ | 927 | $ | 566 | $ | 531 | $ | 574 | $ | (388 | ) | $ | (377 | ) | $ | 1,833 | |||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Asset Impairments/Restructuring | — | — | — | — | 390 | — | 390 | ||||||||||||||||||||||
Productivity & Reinvestment | 2 | 2 | 52 | — | 6 | 33 | 95 | ||||||||||||||||||||||
Equity Investees | — | — | — | — | 68 | (17 | ) | 51 | |||||||||||||||||||||
Transaction Gains/Losses | — | — | 19 | — | 80 | — | 99 | ||||||||||||||||||||||
Other Items | — | — | (19 | ) | — | 10 | 102 | 93 | |||||||||||||||||||||
Comparable (Non-GAAP) | $ | 929 | $ | 568 | $ | 583 | $ | 574 | $ | 166 | $ | (259 | ) | $ | 2,561 |
Operating Margin: | ||||||
Three Months Ended March 30, 2018 | Three Months Ended March 31, 2017 | Basis Point Growth | ||||
Reported Operating Margin (GAAP) | 23.75 | % | 21.53 | % | 222 | |
Items Impacting Comparability (Non-GAAP) | (6.90 | )% | (3.13 | )% | ||
Comparable Operating Margin (Non-GAAP) | 30.65 | % | 24.66 | % | 599 |
Purchases and Issuances of Stock: | ||||||||||
Three Months Ended March 30, 2018 | Three Months Ended March 31, 2017 | |||||||||
Reported (GAAP): | ||||||||||
Issuances of Stock | $ | 477 | $ | 394 | ||||||
Purchases of Stock for Treasury | (927 | ) | (1,304 | ) | ||||||
Net Change in Stock Issuance Receivables1 | (5 | ) | (1 | ) | ||||||
Net Change in Treasury Stock Payables2 | (16 | ) | 75 | |||||||
Net Share Repurchases (Non-GAAP) | $ | (471 | ) | $ | (836 | ) |
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. |
Free Cash Flow: | ||||||||||||||||
Three Months Ended March 30, 2018 | Three Months Ended March 31, 2017 | % Change | ||||||||||||||
Net Cash Provided by Operating Activities | $ | 613 | $ | 764 | (20 | ) | ||||||||||
Purchases of Property, Plant and Equipment | (274 | ) | (442 | ) | (38 | ) | ||||||||||
Free Cash Flow (Non-GAAP) | $ | 339 | $ | 322 | 5 |