Highlights |
Quarterly Performance |
• | Revenues: Net revenues grew 5% to $8.0 billion. Organic revenues (non-GAAP) grew 6%. An estimated 2 points of revenue growth was attributable to timing, primarily related to bottler inventory build in order to manage uncertainty related to Brexit. Additionally, the quarter included one less day, which resulted in an approximate 1-point headwind to revenue growth. |
• | Margin: Operating margin for the quarter, which included items impacting comparability, was 29.1% versus 23.7% in the prior year. Comparable operating margin (non-GAAP) was 30.5% versus 30.7% in the prior year. Strong underlying margin (non-GAAP) expansion was offset by an approximate 260 basis point negative impact from currency headwinds and net acquisitions. |
• | Earnings per share: EPS from continuing operations grew 24% to $0.38. Comparable EPS from continuing operations (non-GAAP) grew 2% to $0.48, despite an 11-point currency headwind. EPS included an estimated 2 cent benefit from timing, primarily from the bottler inventory build related to Brexit. |
• | Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages. |
• | Cash flow: Cash from operations was $699 million, up 14%. Free cash flow (non-GAAP) was $335 million, down 1% as strong underlying cash generation was offset by currency headwinds along with an increase in capital expenditures and cash tax payments. |
• | Share repurchases: Purchases of stock for treasury were $397 million. Net share repurchases (non-GAAP) totaled $243 million. |
Company Updates |
• | Chairman transition and an evolving growth culture: Following the company’s annual meeting on April 24, James Quincey will become the 14th chairman of The Coca-Cola Company, contingent upon his reelection as a director. Quincey succeeds Muhtar Kent, who is retiring after a Coca-Cola system career that started in 1978. Kent served as chairman and CEO from 2009 until 2017 and then as chairman after Quincey became CEO. Quincey intends to build on the strong foundation Kent has established within the system, including a focus on fostering a growth-oriented culture. |
• | Pursuing the company's World Without Waste goals: Supporting its commitment to the World Without Waste initiative and improved transparency, the company issued its annual progress report, which cited continued progress globally on design, collect and partner efforts. For example, the company, along with its bottling partners, now has 100% recycled PET bottles in multiple markets and will have them in more than a dozen markets by the end of 2019, driving successful circular solutions for packaging. Much of the system's Latin America business is engaged in a multi-country project to significantly increase the use of refillable packaging, and markets globally are assessing ways to move toward more diverse business models for product delivery. |
• | Broadening a consumer-centric portfolio: During the quarter, the company completed its acquisition of Costa Ltd., which gives Coca-Cola a significant entry point into hot beverages and a global platform in coffee. In the second quarter, the company will begin to leverage Costa's scalable platform across formats and channels with the introduction of Costa ready-to-drink products. Coca-Cola also closed its acquisition of CHI Ltd., an innovative, fast-growing leader in expanding beverage categories in West Africa, including juices, value-added dairy and iced tea. |
• | Driving profitable growth under the Leader, Challenger, Explorer framework: Strong innovation within Leader brands included double-digit growth for Coca-Cola Zero Sugar globally for the sixth consecutive quarter. Within the U.S., the company showed strong performance for Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar, which helped drive 6% retail value growth for brand Coca-Cola. The company also launched Simply smoothies in the U.S., while innocent, the company's leading juice brand in Europe, expanded into plant-based beverages. As a Challenger brand, smartwater continues to innovate through the successful rollout of smartwater antioxidant and smartwater alkaline in the U.S. Within Explorer brands, the company continued to capitalize on brands with edge, including Aquarius GlucoCharge, which has shown early signs of success in the fast-growing enhanced hydration category in India. |
• | Aligned and engaged system investing for growth: The company has established a sustained platform for performance that is focused on disciplined portfolio growth through an aligned and engaged system. Across the bottling system, the company is seeing the right strategic investments in supply chain, cold-drink equipment and sales force capabilities to drive accelerated results. These investments are creating a winning strategy in the marketplace, centered around improved execution that is committed to increasing the availability of core products, in addition to expanding the total portfolio. |
Operating Review – Three Months Ended March 29, 2019 |
Percent Change | Concentrate Sales1 | Price/Mix | Currency Impact | Acquisitions, Divestitures and Structural Items, Net | Reported Net Revenues | Organic Revenues2 | Unit Case Volume | ||
Consolidated | 1 | 5 | (6) | 5 | 5 | 6 | 2 | ||
Europe, Middle East & Africa | 4 | 10 | (12) | 3 | 5 | 14 | 2 | ||
Latin America | (3) | 9 | (16) | 0 | (10) | 6 | (1) | ||
North America | (3) | 4 | 0 | 0 | 1 | 1 | (1) | ||
Asia Pacific | 6 | (2) | (3) | (3) | (2) | 4 | 7 | ||
Global Ventures3 | (2) | 3 | (22) | 222 | 201 | 1 | 1 | ||
Bottling Investments | 6 | 3 | (5) | (9) | (5) | 9 | 16 |
Percent Change | Reported Operating Income | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral2 |
Consolidated | 29 | 24 | (11) | 16 |
Europe, Middle East & Africa | 7 | 0 | (15) | 22 |
Latin America | (13) | 0 | (20) | 7 |
North America | 16 | 8 | 0 | 9 |
Asia Pacific | (4) | 0 | (3) | (1) |
Global Ventures | 128 | 0 | (8) | 136 |
Bottling Investments | —4 | — | — | — |
Percent Change | Reported EPS from Continuing Operations | Items Impacting Comparability | Currency Impact | Comparable Currency Neutral2 |
Consolidated | 24 | 22 | (11) | 13 |
Consolidated |
• | Concentrate sales growth of 1% and price/mix growth of 5% were driven by consumer-centric innovation and solid revenue growth management initiatives in the marketplace, in addition to the 2-point benefit related to timing, primarily attributable to bottler inventory build related to Brexit. Additionally, concentrate sales growth of 1% was impacted by one less day in the quarter, which resulted in an approximate 1-point headwind. |
• | Unit case volume grew 2%, driven by strong growth across key markets within Asia and Europe, partially offset by a decline in Argentina, the Middle East region and North America. The timing of Easter also negatively impacted volume growth in the quarter. Category cluster performance was as follows: |
◦ | Sparkling soft drinks grew 1%, driven by strong global performance in brand Coca-Cola through growth in original Coca-Cola and continued double-digit growth of Coca-Cola Zero Sugar. |
◦ | Juice, dairy and plant-based beverages volume was even as strong performance in the Del Valle brand in Mexico and the Maaza brand in India was offset by a decline in Rani, the leading juice brand in the Middle East. |
◦ | Water, enhanced water and sports drinks grew 6%, driven by strong growth across a number of key markets. Growth was driven by strong performance in smaller, immediate consumption packages, reflecting the company's continued focus on value over volume. |
◦ | Tea and coffee volume was even as continued growth through innovation and new product launches, including Georgia Craftsman in Japan and Authentic Tea House in China, was offset by a decline in the doğadan tea business in Turkey. |
• | Operating income grew 29%, which included items impacting comparability. Comparable currency neutral operating income (non-GAAP) grew 16%, driven by strong organic revenue (non-GAAP) growth, a benefit from acquisitions and ongoing productivity initiatives. |
Europe, Middle East & Africa |
• | Price/mix grew 10% for the quarter due to strong pricing in the majority of key markets and the benefit from bottler inventory build related to Brexit, which contributed to positive geographic mix and also caused concentrate sales to grow ahead of unit case volume. |
• | Unit case volume grew 2%, as growth across the majority of markets was partially offset by declines in Zimbabwe and the Middle East. Growth was led by sparkling soft drinks and the continued growth of Fuze Tea. |
• | Operating income grew 7%, despite a 15-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 22% in the quarter, driven by double-digit organic revenue (non-GAAP) growth, ongoing productivity initiatives and the cycling of expenses in the prior year, including increased marketing investments from the January 2018 Fuze Tea launch. |
• | The company gained value share in total NARTD beverages, led by solid share performance across Europe, in addition to the majority of category clusters. The value share gain in NARTD beverages was unfavorably impacted by a value share decline in sparkling soft drinks in Nigeria primarily due to local value brands. |
Latin America |
• | Price/mix grew 9% for the quarter, largely driven by strong performance in Brazil and pricing in Argentina. All business units achieved positive price/mix in the quarter. |
• | Unit case volume declined 1% as growth in Brazil, Peru and Chile was more than offset by a double-digit decline in Argentina. Mexico volume declined 1% in the quarter, partially due to pricing and package initiatives executed in the market to optimize revenue. |
• | Operating income declined 13% in the quarter, which included a 20-point currency headwind. Comparable currency neutral operating income (non-GAAP) grew 7%, largely driven by the benefit of strong pricing in the marketplace. |
• | The company gained value share in total NARTD beverages, driven by solid share performance in Brazil, in addition to the majority of category clusters. |
North America |
• | Price/mix grew 4% for the quarter, driven by strong pricing and mix within the sparkling soft drink portfolio, in addition to a benefit from product mix. |
• | Unit case volume declined 1%, largely due to the impact of pricing and package initiatives executed in the market, in addition to the timing of Easter. For the total portfolio, transactions outpaced volume performance, reflecting continued focus on value over volume. |
• | Operating income grew 16%, which included items impacting comparability. Comparable currency neutral operating income (non-GAAP) grew 9% in the quarter, driven by ongoing productivity initiatives and the timing of expenses. |
• | The company gained value share in total NARTD beverages led by strong performance in sparkling soft drinks, the water, enhanced water and sports drinks category cluster, and the juice, dairy and plant-based beverages category cluster. |
Asia Pacific |
• | Price/mix declined 2% for the quarter, largely driven by geographic mix due to growth in emerging and developing markets outpacing developed markets. |
• | Unit case volume grew 7% due to positive performance across all key markets, with the exception of Australia. Volume growth was led by China, Southeast Asia and India. |
• | Operating income declined 4%. Comparable currency neutral operating income (non-GAAP) declined 1% in the quarter, largely from a structural headwind related to intercompany profit elimination from acquiring bottling operations in the Philippines. |
• | The company gained value share in total NARTD beverages, driven by strong performance within China, India and Southeast Asia. |
Global Ventures |
• | Reported revenue benefited from the closing of the Costa acquisition during the quarter. The company has completed a smooth transition of Costa and is working quickly to leverage the total coffee platform. |
• | Price/mix grew 3% for the quarter, largely driven by product mix as a result of strong performance in the innocent business. |
• | Unit case volume grew 1% as strong growth in innocent and the energy category was partially offset by a double-digit decline in the doğadan tea business in Turkey. |
• | Operating income growth in the quarter benefited from the impact of the Costa acquisition. |
Bottling Investments |
• | Price/mix grew 3% for the quarter, driven by strong price/mix performance in India. |
• | Operating income was unfavorably impacted by comparability items related to refranchising in the prior year and was favorably impacted by the acquisition of bottling operations in the Philippines. |
Outlook |
• | Approximately 4% growth in organic revenues (non-GAAP) – No Change |
• | 12% to 13% growth in comparable currency neutral net revenues (non-GAAP), including an 8% to 9% tailwind from acquisitions, divestitures and structural items – No Change |
• | Comparable net revenues (non-GAAP): 3% to 4% currency headwind based on the current rates and including the impact of hedged positions – No Change |
• | 10% to 11% growth in comparable currency neutral operating income (non-GAAP), including a low single-digit tailwind from acquisitions, divestitures and structural items – No Change |
• | Comparable operating income (non-GAAP): 6% to 7% currency headwind based on the current rates and including the impact of hedged positions – No Change |
• | -1% to 1% growth versus $2.08 in 2018 in comparable EPS from continuing operations (non-GAAP) – No Change |
• | Underlying effective tax rate (non-GAAP): Estimated to be 19.5% – No Change |
• | Cash from operations: At least $8.0 billion – No Change |
• | Capital expenditures (excluding discontinued operations): Approximately $2.0 billion – No Change |
• | Net share repurchases (non-GAAP): Share repurchases to offset dilution from employee stock-based compensation plans – No Change |
• | Comparable net revenues (non-GAAP): 6% tailwind from acquisitions, divestitures and structural items; 4% to 5% currency headwind based on the current rates and including the impact of hedged positions |
• | Comparable operating income (non-GAAP): 7% currency headwind based on the current rates and including the impact of hedged positions |
Notes |
• | All references to growth rate percentages and share compare the results of the period to those of the prior year comparable period. |
• | All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All volume percentage changes are computed based on average daily sales, unless otherwise noted. "Unit case" means a unit of measurement equal to 24 eight-ounce servings of finished beverage. "Unit case volume" means the number of unit cases (or unit case equivalents) of company beverages directly or indirectly sold by the company and its bottling partners to customers. |
• | "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 and the Global Ventures operating segment (excluding Costa) (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 computed based on total sales (rather than average daily sales) in each of the corresponding periods 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 2019 financial results were impacted by one less day as compared to the same period in 2018, and fourth quarter 2019 financial results will be impacted by one additional day as compared to the same period in 2018. 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 29, 2019 | March 30, 2018 | % Change | ||||||||
Net Operating Revenues | $ | 8,020 | $ | 7,626 | 5 | |||||
Cost of goods sold | 2,990 | 2,738 | 9 | |||||||
Gross Profit | 5,030 | 4,888 | 3 | |||||||
Selling, general and administrative expenses | 2,567 | 2,541 | 1 | |||||||
Other operating charges | 127 | 536 | (76 | ) | ||||||
Operating Income | 2,336 | 1,811 | 29 | |||||||
Interest income | 129 | 165 | (22 | ) | ||||||
Interest expense | 232 | 230 | 1 | |||||||
Equity income (loss) — net | 133 | 142 | (6 | ) | ||||||
Other income (loss) — net | (234 | ) | (55 | ) | (321 | ) | ||||
Income from Continuing Operations Before Income Taxes | 2,132 | 1,833 | 16 | |||||||
Income taxes from continuing operations | 486 | 506 | (4 | ) | ||||||
Net Income from Continuing Operations | 1,646 | 1,327 | 24 | |||||||
Income from discontinued operations (net of income taxes of $36 and $40, respectively) | 57 | 73 | (21 | ) | ||||||
Consolidated Net Income | 1,703 | 1,400 | 22 | |||||||
Less: Net income attributable to noncontrolling interests | 25 | 32 | (20 | ) | ||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ | 1,678 | $ | 1,368 | 23 | |||||
Basic net income per share from continuing operations1 | $ | 0.39 | $ | 0.31 | 24 | |||||
Basic net income per share from discontinued operations2 | 0.01 | 0.01 | (23 | ) | ||||||
Basic Net Income Per Share3 | $ | 0.39 | $ | 0.32 | 22 | |||||
Average Shares Outstanding — Basic | 4,271 | 4,265 | 0 | |||||||
Diluted net income per share from continuing operations1 | $ | 0.38 | $ | 0.31 | 24 | |||||
Diluted net income per share from discontinued operations2 | 0.01 | 0.01 | (23 | ) | ||||||
Diluted Net Income Per Share | $ | 0.39 | $ | 0.32 | 23 | |||||
Average Shares Outstanding — Diluted | 4,306 | 4,306 | 0 | |||||||
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. |
3 | Certain columns may not add due to rounding. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Balance Sheets | |||||||
(UNAUDITED) | |||||||
(In millions except par value) | |||||||
March 29, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 5,645 | $ | 8,926 | |||
Short-term investments | 1,538 | 2,025 | |||||
Total Cash, Cash Equivalents and Short-Term Investments | 7,183 | 10,951 | |||||
Marketable securities | 4,765 | 5,013 | |||||
Trade accounts receivable, less allowances of $492 and $489, respectively | 3,852 | 3,396 | |||||
Inventories | 3,178 | 2,766 | |||||
Prepaid expenses and other assets | 2,935 | 1,962 | |||||
Assets held for sale — discontinued operations | 6,627 | 6,546 | |||||
Total Current Assets | 28,540 | 30,634 | |||||
Equity Method Investments | 19,283 | 19,407 | |||||
Other Investments | 915 | 867 | |||||
Other Assets | 5,382 | 4,139 | |||||
Deferred Income Tax Assets | 2,617 | 2,667 | |||||
Property, Plant and Equipment — net | 8,866 | 8,232 | |||||
Trademarks With Indefinite Lives | 9,351 | 6,682 | |||||
Bottlers' Franchise Rights With Indefinite Lives | 111 | 51 | |||||
Goodwill | 12,964 | 10,263 | |||||
Other Intangible Assets | 318 | 274 | |||||
Total Assets | $ | 88,347 | $ | 83,216 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable and accrued expenses | $ | 10,986 | $ | 8,932 | |||
Loans and notes payable | 11,570 | 13,194 | |||||
Current maturities of long-term debt | 3,297 | 4,997 | |||||
Accrued income taxes | 255 | 378 | |||||
Liabilities held for sale — discontinued operations | 1,835 | 1,722 | |||||
Total Current Liabilities | 27,943 | 29,223 | |||||
Long-Term Debt | 29,400 | 25,364 | |||||
Other Liabilities | 8,598 | 7,638 | |||||
Deferred Income Tax Liabilities | 2,602 | 1,933 | |||||
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 | 16,577 | 16,520 | |||||
Reinvested earnings | 63,704 | 63,234 | |||||
Accumulated other comprehensive income (loss) | (12,325 | ) | (12,814 | ) | |||
Treasury stock, at cost — 2,772 and 2,772 shares, respectively | (51,981 | ) | (51,719 | ) | |||
Equity Attributable to Shareowners of The Coca-Cola Company | 17,735 | 16,981 | |||||
Equity Attributable to Noncontrolling Interests | 2,069 | 2,077 | |||||
Total Equity | 19,804 | 19,058 | |||||
Total Liabilities and Equity | $ | 88,347 | $ | 83,216 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(UNAUDITED) | |||||||
(In millions) | |||||||
Three Months Ended | |||||||
Operating Activities | March 29, 2019 | March 30, 2018 | |||||
Consolidated net income | $ | 1,703 | $ | 1,400 | |||
(Income) loss from discontinued operations | (57 | ) | (73 | ) | |||
Net income from continuing operations | 1,646 | 1,327 | |||||
Depreciation and amortization | 275 | 270 | |||||
Stock-based compensation expense | 40 | 72 | |||||
Deferred income taxes | 110 | (199 | ) | ||||
Equity (income) loss — net of dividends | (119 | ) | (43 | ) | |||
Foreign currency adjustments | (39 | ) | (19 | ) | |||
Significant (gains) losses on sales of assets — net | 87 | 34 | |||||
Other operating charges | 55 | 510 | |||||
Other items | 122 | (27 | ) | ||||
Net change in operating assets and liabilities | (1,478 | ) | (1,312 | ) | |||
Net cash provided by operating activities | 699 | 613 | |||||
Investing Activities | |||||||
Purchases of investments | (1,062 | ) | (2,669 | ) | |||
Proceeds from disposals of investments | 1,994 | 4,379 | |||||
Acquisitions of businesses, equity method investments and nonmarketable securities | (5,201 | ) | (183 | ) | |||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 261 | 3 | |||||
Purchases of property, plant and equipment | (364 | ) | (274 | ) | |||
Proceeds from disposals of property, plant and equipment | 26 | 43 | |||||
Other investing activities | 31 | 22 | |||||
Net cash provided by (used in) investing activities | (4,315 | ) | 1,321 | ||||
Financing Activities | |||||||
Issuances of debt | 10,119 | 9,576 | |||||
Payments of debt | (9,656 | ) | (8,770 | ) | |||
Issuances of stock | 190 | 477 | |||||
Purchases of stock for treasury | (397 | ) | (927 | ) | |||
Other financing activities | 29 | (72 | ) | ||||
Net cash provided by (used in) financing activities | 285 | 284 | |||||
Cash Flows from Discontinued Operations | |||||||
Net cash provided by (used in) operating activities | 89 | 46 | |||||
Net cash provided by (used in) investing activities | (144 | ) | (24 | ) | |||
Net cash provided by (used in) financing activities | 136 | 40 | |||||
Net cash provided by (used in) discontinued operations | 81 | 62 | |||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 56 | 95 | |||||
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 | (3,194 | ) | 2,375 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 9,318 | 6,373 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 6,124 | 8,748 | |||||
Less: Restricted cash and restricted cash equivalents at end of period | 479 | 457 | |||||
Cash and cash equivalents at end of period | $ | 5,645 | $ | 8,291 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Operating Segments | |||||||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Net Operating Revenues1 | Operating Income (Loss) | Income (Loss) from Continuing Operations Before Income Taxes | |||||||||||||||||||||||||||||||
March 29, 2019 | March 30, 2018 | % Fav. / (Unfav.) | March 29, 2019 | March 30, 2018 | % Fav. / (Unfav.) | March 29, 2019 | March 30, 2018 | % Fav. / (Unfav.) | |||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,772 | $ | 1,686 | 5 | $ | 978 | $ | 914 | 7 | $ | 988 | $ | 927 | 7 | ||||||||||||||||||
Latin America | 896 | 997 | (10 | ) | 496 | 571 | (13 | ) | 491 | 565 | (13 | ) | |||||||||||||||||||||
North America | 2,683 | 2,652 | 1 | 586 | 503 | 16 | 537 | 500 | 8 | ||||||||||||||||||||||||
Asia Pacific | 1,187 | 1,215 | (2 | ) | 542 | 562 | (4 | ) | 550 | 571 | (4 | ) | |||||||||||||||||||||
Global Ventures | 585 | 194 | 201 | 66 | 29 | 128 | 68 | 32 | 115 | ||||||||||||||||||||||||
Bottling Investments | 996 | 1,051 | (5 | ) | 1 | (461 | ) | — | (200 | ) | (388 | ) | 48 | ||||||||||||||||||||
Corporate | 32 | 11 | 186 | (333 | ) | (307 | ) | (9 | ) | (302 | ) | (374 | ) | 19 | |||||||||||||||||||
Eliminations | (131 | ) | (180 | ) | 27 | — | — | — | — | — | — | ||||||||||||||||||||||
Consolidated | $ | 8,020 | $ | 7,626 | 5 | $ | 2,336 | $ | 1,811 | 29 | $ | 2,132 | $ | 1,833 | 16 |
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, 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 and divestitures of bottling and distribution operations including the impact of intercompany transactions among our operating segments. In 2018, the company acquired a controlling interest in the Philippine bottling operations, which was previously accounted for as an equity method investee. 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 and Asia Pacific operating segments. In 2018, the company refranchised our Canadian and Latin American bottling operations. 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 the North America, Latin America and Bottling Investments operating segments. 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. |
• | "Comparable net revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). "Comparable currency neutral net revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below) as well as the impact of changes in foreign currency exchange rates. Management believes the comparable net revenues (non-GAAP) growth measure and the comparable currency neutral net revenues (non‑GAAP) growth measure provide 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, and 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 items. The adjustments related to acquisitions, divestitures and structural items for the three months ended |
THE COCA-COLA COMPANY AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Financial Measures |
(UNAUDITED) |
• | "Comparable operating income" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). "Comparable currency neutral operating income" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below) and the impact of changes in foreign currency exchange rates. "Comparable operating margin" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). "Underlying operating margin" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below), the impact of changes in foreign currency exchange rates, and the impact of acquisitions, divestitures and structural items, as applicable. Management uses these non-GAAP financial measures to evaluate the company's performance and make resource allocation decisions. Further, management believes the comparable operating income (non-GAAP) growth measure, comparable currency neutral operating income (non-GAAP) growth measure, comparable operating margin (non-GAAP) measure and underlying operating margin (non-GAAP) measure 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 (discussed further below). Comparable currency neutral EPS from continuing operations (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 from continuing operations (non-GAAP) and comparable currency neutral EPS from continuing operations (non-GAAP) growth measures enhance its ability to communicate the underlying operating results and provide investors with useful supplemental information to enhance their understanding of the company's underlying business performance and trends by improving their ability to compare our period-to-period financial results. |
• | "Underlying effective tax rate" is a non-GAAP financial measure that represents the estimated annual effective income tax rate on income from continuing operations before income taxes, which 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 March 29, 2019 | ||||||||||||||||||||||||||||||||
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) | $ | 8,020 | $ | 2,990 | $ | 5,030 | 62.7 | % | $ | 2,567 | $ | 127 | $ | 2,336 | 29.1 | % | ||||||||||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||||||||
Asset Impairments | — | — | — | — | — | — | ||||||||||||||||||||||||||
Productivity and Reinvestment | — | — | — | — | (68 | ) | 68 | |||||||||||||||||||||||||
Equity Investees | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | (57 | ) | 57 | |||||||||||||||||||||||||
Other Items | 4 | 22 | (18 | ) | — | (2 | ) | (16 | ) | |||||||||||||||||||||||
Certain Tax Matters | — | — | — | — | — | — | ||||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 8,024 | $ | 3,012 | $ | 5,012 | 62.5 | % | $ | 2,567 | $ | — | $ | 2,445 | 30.5 | % | ||||||||||||||||
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 | — | — | — | — | (390 | ) | 390 | |||||||||||||||||||||||||
Productivity and 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 | % | ||||||||||||||||
Net operating revenues | Cost of goods sold | Gross profit | Selling, general and administrative expenses | Other operating charges | Operating income | |||||||||||||||||||||||||||
% Change — Reported (GAAP) | 5 | 9 | 3 | 1 | (76) | 29 | ||||||||||||||||||||||||||
% Currency Impact | (6) | (4) | (8) | (5) | — | (15) | ||||||||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 12 | 13 | 11 | 6 | — | 44 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 5 | 10 | 3 | 1 | — | 5 | ||||||||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (6) | (4) | (8) | (5) | — | (11) | ||||||||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 12 | 13 | 11 | 6 | — | 16 |
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 29, 2019 | |||||||||||||||||||||||||||||||||
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) | $ | 232 | $ | 133 | $ | (234 | ) | $ | 2,132 | $ | 486 | 22.8 | % | $ | 1,646 | $ | 0.38 | 4 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments | — | — | 343 | 343 | 36 | 307 | 0.07 | ||||||||||||||||||||||||||
Productivity and Reinvestment | — | — | — | 68 | 16 | 52 | 0.01 | ||||||||||||||||||||||||||
Equity Investees | — | 42 | — | 42 | 1 | 41 | 0.01 | ||||||||||||||||||||||||||
Transaction Gains/Losses | — | — | 90 | 147 | (23 | ) | 170 | 0.04 | |||||||||||||||||||||||||
Other Items | — | — | (162 | ) | (178 | ) | (40 | ) | (138 | ) | (0.03 | ) | |||||||||||||||||||||
Certain Tax Matters | — | — | — | — | 22 | (22 | ) | (0.01 | ) | ||||||||||||||||||||||||
Comparable (Non-GAAP) | $ | 232 | $ | 175 | $ | 37 | $ | 2,554 | $ | 498 | 19.5 | % | $ | 2,056 | $ | 0.48 | 4 | ||||||||||||||||
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 | 3 | ||||||||||||||||||||||||
Reported (GAAP) | $ | 230 | $ | 142 | $ | (55 | ) | $ | 1,833 | $ | 506 | 27.6 | % | $ | 1,327 | $ | 0.31 | 4 | |||||||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||||||
Asset Impairments | — | — | — | 390 | 100 | 290 | 0.07 | ||||||||||||||||||||||||||
Productivity and 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 | ||||||||||||||||
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) | 1 | (6) | (321) | 16 | (4) | 24 | 24 | ||||||||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 1 | (10) | (61) | 0 | (7) | 2 | 2 |
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 | 4,306 million average shares outstanding — diluted |
4 | Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests of $1 million and $2 million for the three months ended March 29, 2019 and March 30, 2018, respectively. |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |
Reconciliation of GAAP and Non-GAAP Financial Measures | |
(UNAUDITED) | |
Diluted Net Income Per Share from Continuing Operations: | |
Three Months Ended March 29, 2019 | |
% Change — Reported (GAAP) | 24 |
% Currency Impact | (16) |
% Change — Currency Neutral (Non-GAAP) | 40 |
% Impact of Items Impacting Comparability (Non-GAAP) | 22 |
% Change — Comparable (Non-GAAP) | 2 |
% Comparable Currency Impact (Non-GAAP) | (11) |
% Change — Comparable Currency Neutral (Non-GAAP) | 13 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | |||||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Net Operating Revenues by Operating Segment and Corporate: | |||||||||||||||||||||||||||||
Three Months Ended March 29, 2019 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 1,772 | $ | 896 | $ | 2,683 | $ | 1,187 | $ | 585 | $ | 996 | $ | 32 | $ | (131 | ) | $ | 8,020 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Other Items | — | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||
Comparable (Non-GAAP) | $ | 1,772 | $ | 896 | $ | 2,683 | $ | 1,187 | $ | 585 | $ | 996 | $ | 36 | $ | (131 | ) | $ | 8,024 | ||||||||||
Three Months Ended March 30, 2018 | |||||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
Reported (GAAP) | $ | 1,686 | $ | 997 | $ | 2,652 | $ | 1,215 | $ | 194 | $ | 1,051 | $ | 11 | $ | (180 | ) | $ | 7,626 | ||||||||||
Items Impacting Comparability: | |||||||||||||||||||||||||||||
Other Items | — | — | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||
Comparable (Non-GAAP) | $ | 1,686 | $ | 997 | $ | 2,652 | $ | 1,215 | $ | 194 | $ | 1,051 | $ | 9 | $ | (180 | ) | $ | 7,624 | ||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Eliminations | Consolidated | |||||||||||||||||||||
% Change — Reported (GAAP) | 5 | (10) | 1 | (2) | 201 | (5) | 186 | 27 | 5 | ||||||||||||||||||||
% Currency Impact | (12) | (16) | 0 | (3) | (22) | (5) | 53 | — | (6) | ||||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 17 | 6 | 1 | 1 | 223 | 0 | 133 | — | 12 | ||||||||||||||||||||
% Acquisitions, Divestitures and Structural Items | 3 | 0 | 0 | (3) | 222 | (9) | 0 | — | 5 | ||||||||||||||||||||
% Change — Organic Revenues (Non-GAAP) | 14 | 6 | 1 | 4 | 1 | 9 | 133 | — | 6 | ||||||||||||||||||||
% Change — Comparable (Non-GAAP) | 5 | (10) | 1 | (2) | 201 | (5) | 286 | — | 5 | ||||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (12) | (16) | 0 | (3) | (22) | (5) | 129 | — | (6) | ||||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 17 | 6 | 1 | 1 | 223 | 0 | 157 | — | 12 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Operating Income (Loss) by Operating Segment and Corporate: | ||||||||||||||||||||||||||
Three Months Ended March 29, 2019 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 978 | $ | 496 | $ | 586 | $ | 542 | $ | 66 | $ | 1 | $ | (333 | ) | $ | 2,336 | |||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments | — | — | — | — | — | — | — | — | ||||||||||||||||||
Productivity and Reinvestment | 1 | — | 17 | — | — | 2 | 48 | 68 | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 11 | 46 | 57 | ||||||||||||||||||
Other Items | — | — | (21 | ) | — | — | (4 | ) | 9 | (16 | ) | |||||||||||||||
Comparable (Non-GAAP) | $ | 979 | $ | 496 | $ | 582 | $ | 542 | $ | 66 | $ | 10 | $ | (230 | ) | $ | 2,445 | |||||||||
Three Months Ended March 30, 2018 | ||||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
Reported (GAAP) | $ | 914 | $ | 571 | $ | 503 | $ | 562 | $ | 29 | $ | (461 | ) | $ | (307 | ) | $ | 1,811 | ||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||||
Asset Impairments | — | — | — | — | — | 390 | — | 390 | ||||||||||||||||||
Productivity and Reinvestment | 2 | 2 | 52 | — | — | 6 | 33 | 95 | ||||||||||||||||||
Transaction Gains/Losses | — | — | — | — | — | 45 | — | 45 | ||||||||||||||||||
Other Items | — | — | (19 | ) | — | — | 10 | 5 | (4 | ) | ||||||||||||||||
Comparable (Non-GAAP) | $ | 916 | $ | 573 | $ | 536 | $ | 562 | $ | 29 | $ | (10 | ) | $ | (269 | ) | $ | 2,337 | ||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Global Ventures | Bottling Investments | Corporate | Consolidated | |||||||||||||||||||
% Change — Reported (GAAP) | 7 | (13) | 16 | (4) | 128 | — | (9) | 29 | ||||||||||||||||||
% Currency Impact | (15) | (20) | 0 | (3) | (8) | — | 2 | (15) | ||||||||||||||||||
% Change — Currency Neutral (Non-GAAP) | 22 | 7 | 17 | (1) | 136 | — | (10) | 44 | ||||||||||||||||||
% Impact of Items Impacting Comparability (Non-GAAP) | 0 | 0 | 8 | 0 | 0 | — | (23) | 24 | ||||||||||||||||||
% Change — Comparable (Non-GAAP) | 7 | (13) | 9 | (4) | 128 | — | 15 | 5 | ||||||||||||||||||
% Comparable Currency Impact (Non-GAAP) | (15) | (20) | 0 | (3) | (8) | — | 4 | (11) | ||||||||||||||||||
% Change — Comparable Currency Neutral (Non-GAAP) | 22 | 7 | 9 | (1) | 136 | — | 10 | 16 |
THE COCA-COLA COMPANY AND SUBSIDIARIES | ||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||
(UNAUDITED) | ||||||
(In millions) | ||||||
Operating Margin: | ||||||
Three Months Ended March 29, 2019 | Three Months Ended March 30, 2018 | Basis Point Growth (Decline) | ||||
Reported Operating Margin (GAAP) | 29.12 | % | 23.75 | % | 537 | |
Items Impacting Comparability (Non-GAAP) | (1.35 | )% | (6.90 | )% | ||
Comparable Operating Margin (Non-GAAP) | 30.47 | % | 30.65 | % | (18 | ) |
Comparable Currency Impact (Non-GAAP) | (1.32 | )% | 0.00 | % | ||
Comparable Currency Neutral Operating Margin (Non-GAAP) | 31.79 | % | 30.65 | % | 114 | |
Impact of Acquisitions and Structural Items on Comparable Currency Neutral Operating Margin (Non-GAAP) | (2.90 | )% | (1.65 | )% | ||
Underlying Operating Margin (Non-GAAP) | 34.69 | % | 32.30 | % | 239 |
Purchases and Issuances of Stock: | ||||||||||
Three Months Ended March 29, 2019 | Three Months Ended March 30, 2018 | |||||||||
Reported (GAAP): | ||||||||||
Issuances of Stock | $ | 190 | $ | 477 | ||||||
Purchases of Stock for Treasury | (397 | ) | (927 | ) | ||||||
Net Change in Stock Issuance Receivables1 | 6 | (5 | ) | |||||||
Net Change in Treasury Stock Payables2 | (42 | ) | (16 | ) | ||||||
Net Share Repurchases (Non-GAAP) | $ | (243 | ) | $ | (471 | ) |
Free Cash Flow: | |||||||||||||
Three Months Ended March 29, 2019 | Three Months Ended March 30, 2018 | % Change | |||||||||||
Net Cash Provided by Operating Activities (GAAP) | $ | 699 | $ | 613 | 14 | ||||||||
Purchases of Property, Plant and Equipment (GAAP) | (364 | ) | (274 | ) | 33 | ||||||||
Free Cash Flow (Non-GAAP) | $ | 335 | $ | 339 | (1 | ) |