Form: 8-K

Current report filing

June 28, 2019

Documents


Exhibit 99.1

The Coca-Cola Company and Subsidiaries                                    
Condensed Consolidated Statements of Income — Reclassified
Unaudited
(In millions except per share data)

 
1Q19
1Q18
2Q18
3Q18
4Q18
FY18
4Q17
FY17
Net Operating Revenues
$
8,694

$
8,298

$
9,421

$
8,775

$
7,806

$
34,300

$
8,314

$
36,212

Cost of goods sold
3,365

3,076

3,543

3,346

3,102

13,067

3,155

13,721

Gross Profit
5,329

5,222

5,878

5,429

4,704

21,233

5,159

22,491

Selling, general and administrative expenses
2,767

2,739

2,887

2,660

2,716

11,002

3,057

12,834

Other operating charges
127

536

225

155

163

1,079

592

1,902

Operating Income
2,435

1,947

2,766

2,614

1,825

9,152

1,510

7,755

Interest income
133
166

173

171

179

689

184

679

Interest expense
245
236

247

214

253

950

222

853

Equity income (loss) — net
133
141

324

348

195

1,008

189

1,072

Other income (loss) — net
(231
)
(73
)
(74
)
(546
)
(981
)
(1,674
)
(576
)
(1,763
)
Income Before Income Taxes
2,225

1,945

2,942

2,373

965

8,225

1,085

6,890

Income taxes
522

545

611

555

38

1,749

3,802

5,607

Consolidated Net Income (Loss)
1,703

1,400

2,331

1,818

927

6,476

(2,717
)
1,283

Less: Net income (loss) attributable to noncontrolling interests
25

32

15

(62
)
57

42

35

35

Net Income (Loss) Attributable to Shareowners of The Coca-Cola Company
$
1,678

$
1,368

$
2,316

$
1,880

$
870

$
6,434

$
(2,752
)
$
1,248

Basic Net Income (Loss) Per Share 1
$
0.39

$
0.32

$
0.54

$
0.44

$
0.20

$
1.51

$
(0.65
)
$
0.29

Diluted Net Income (Loss) Per Share 1
$
0.39

$
0.32

$
0.54

$
0.44

$
0.20

$
1.50

$
(0.65
)
$
0.29

Average Shares Outstanding
4,271

4,265

4,255

4,255

4,262

4,259

4,261

4,272

Effect of dilutive securities
35

41

35

40

42

40

—

52

Average Shares Outstanding Assuming Dilution
4,306

4,306

4,290

4,295

4,304

4,299

4,261

4,324

Comparable Diluted Net Income Per Share (Non-GAAP)
$
0.48

$
0.47

$
0.60

$
0.57

$
0.44

$
2.08

$
0.40

$
1.92


Note: Reclassified data reflect the reclassification of Coca-Cola Beverages Africa Proprietary Limited ("CCBA") from discontinued operations into continuing operations.
1 Calculated based on net income (loss) attributable to shareowners of The Coca-Cola Company (the "company").


















1

Exhibit 99.1

The Coca-Cola Company and Subsidiaries                                    
Condensed Consolidated Balance Sheets — Reclassified
Unaudited
(In millions except par value)

 
March 29, 2019

March 30, 2018

June 29, 2018

September 28, 2018

December 31, 2018

December 31, 2017

ASSETS
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
Cash and cash equivalents
$
5,848

$
8,461

$
8,149

$
9,221

$
9,077

$
6,102

Short-term investments
1,538

7,518

5,843

4,727

2,025

9,352

Total Cash, Cash Equivalents and Short-Term Investments
7,386

15,979

13,992

13,948

11,102

15,454

Marketable securities
4,765

5,564

5,536

5,055

5,013

5,317

Trade accounts receivable, less allowances
4,109

4,183

4,822

3,986

3,685

3,966

Inventories
3,461

3,231

3,169

2,884

3,071

2,954

Prepaid expenses and other assets
3,038

2,518

2,611

2,149

2,059

2,052

Assets held for sale
—

213

—

—

—

219

Total Current Assets
22,759

31,688

30,130

28,022

24,930

29,962

Equity Method Investments
19,289

21,485

20,610

20,904

19,412

20,863

Other Investments
915

1,039

1,015

1,051

867

1,096

Other Assets
5,401

4,433

4,423

4,546

4,148

4,244

Deferred Income Tax Assets
2,623

3,315

3,015

2,736

2,674

346

Property, Plant and Equipment — net
10,273

9,438

9,129

8,652

9,598

9,638

Trademarks With Indefinite Lives
9,351

6,753

6,669

6,668

6,682

6,729

Bottlers' Franchise Rights with Indefinite Lives
111

53

38

51

51

138

Goodwill
16,839

13,830

13,523

13,549

14,109

13,649

Other Intangible Assets
786

1,248

1,041

698

745

1,231

Total Assets
$
88,347

$
93,282

$
89,593

$
86,877

$
83,216

$
87,896

LIABILITIES AND EQUITY
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
Accounts payable and accrued expenses
$
11,516

$
10,763

$
11,384

$
10,897

$
9,533

$
9,346

Loans and notes payable
12,354

15,203

15,154

13,398

13,835

13,609

Current maturities of long-term debt
3,303

4,376

4,029

6,347

5,003

3,304

Accrued income taxes
310

634

393

348

411

449

Liabilities held for sale
—

33

—

—

—

37

Total Current Liabilities
27,483

31,009

30,960

30,990

28,782

26,745

Long-Term Debt
29,409

29,812

28,080

25,538

25,376

31,202

Other Liabilities
8,610

8,089

7,377

7,255

7,646

8,031

Deferred Income Tax Liabilities
3,041

2,755

3,000

2,916

2,354

2,941

The Coca-Cola Company Shareowners' Equity
 
 
 
 
 
 
Common stock, $0.25 par value; Authorized — 11,200 shares
1,760

1,760

1,760

1,760

1,760

1,760

Capital surplus
16,577

16,006

16,117

16,266

16,520

15,864

Reinvested earnings
63,704

63,150

63,808

64,028

63,234

60,430

Accumulated other comprehensive income (loss)
(12,325
)
(10,038
)
(11,774
)
(12,070
)
(12,814
)
(10,305
)
Treasury stock, at cost
(51,981
)
(51,268
)
(51,588
)
(51,720
)
(51,719
)
(50,677
)
Equity Attributable to Shareowners of The Coca-Cola Company
17,735

19,610

18,323

18,264

16,981

17,072

Equity Attributable to Noncontrolling interests
2,069

2,007

1,853

1,914

2,077

1,905

Total Equity
19,804

21,617

20,176

20,178

19,058

18,977

Total Liabilities and Equity
$
88,347

$
93,282

$
89,593

$
86,877

$
83,216

$
87,896


Note: Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.






2

Exhibit 99.1

The Coca-Cola Company and Subsidiaries                                    
Purchases of Property, Plant and Equipment — Reclassified
Unaudited
(In millions)


 
1Q19
1Q18
YTD 2Q18
YTD 3Q18
FY18
FY17
Purchases of Property, Plant and Equipment
$
(388
)
$
(299
)
$
(689
)
$
(1,048
)
$
(1,548
)
$
(1,750
)

Note: Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
















































3

Exhibit 99.1

The Coca-Cola Company and Subsidiaries                                    
Reclassified Operating Segment and Corporate Data
Unaudited
(In millions)
 
1Q19
1Q18
2Q18
3Q18
4Q18
FY18
4Q17
FY17
Net Operating Revenues — Third Party
 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
1,634

$
1,537

$
1,884

$
1,702

$
1,412

$
6,535

$
1,563

$
6,780

Latin America
896

978

1,011

1,001

981

3,971

1,097

3,953

North America
2,681

2,598

3,010

2,972

2,790

11,370

2,439

8,678

Asia Pacific
1,060

1,109

1,396

1,348

944

4,797

955

4,753

Global Ventures
583

193

210

183

181

767

183

712

Bottling Investments
1,808

1,872

1,853

1,552

1,491

6,768

2,066

11,223

Corporate
32

11

57

17

7

92

11

113

Consolidated
$
8,694

$
8,298

$
9,421

$
8,775

$
7,806

$
34,300

$
8,314

$
36,212

 
 
 
 
 
 
 
 
 
Net Operating Revenues — Intersegment
 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
138

$
149

$
124

$
124

$
167

$
564

$
42

$
42

Latin America
—

19

19

1

—

39

19

73

North America
2

54

70

119

17

260

179

1,951

Asia Pacific
127

106

118

72

92

388

69

409

Global Ventures
2

1

1

—

1

3

1

3

Bottling Investments
2

2

2

13

2

19

14

83

Corporate
—

—

—

—

—

—

—

—

Eliminations
(271
)
(331
)
(334
)
(329
)
(279
)
(1,273
)
(324
)
(2,561
)
Consolidated
$
—

$
—

$
—

$
—

$
—

$
—

$
—

$
—

 
 
 
 
 
 
 
 
 
Net Operating Revenues — Total
 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
1,772

$
1,686

$
2,008

$
1,826

$
1,579

$
7,099

$
1,605

$
6,822

Latin America
896

997

1,030

1,002

981

4,010

1,116

4,026

North America
2,683

2,652

3,080

3,091

2,807

11,630

2,618

10,629

Asia Pacific
1,187

1,215

1,514

1,420

1,036

5,185

1,024

5,162

Global Ventures
585

194

211

183

182

770

184

715

Bottling Investments
1,810

1,874

1,855

1,565

1,493

6,787

2,080

11,306

Corporate
32

11

57

17

7

92

11

113

Eliminations
(271
)
(331
)
(334
)
(329
)
(279
)
(1,273
)
(324
)
(2,561
)
Consolidated
$
8,694

$
8,298

$
9,421

$
8,775

$
7,806

$
34,300

$
8,314

$
36,212

 
 
 
 
 
 
 
 
 
Comparable Net Operating Revenues — Total (Non-GAAP)1

 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
1,772

$
1,686

$
2,008

$
1,826

$
1,579

$
7,099

$
1,605

$
6,822

Latin America
896

997

1,030

1,002

981

4,010

1,116

4,026

North America
2,683

2,652

3,080

3,091

2,807

11,630

2,612

10,619

Asia Pacific
1,187

1,215

1,514

1,420

1,036

5,185

1,024

5,162

Global Ventures
585

194

211

183

182

770

184

715

Bottling Investments
1,810

1,874

1,855

1,565

1,493

6,787

2,080

11,306

Corporate
36

9

33

35

6

83

17

129

Eliminations
(271
)
(331
)
(334
)
(329
)
(279
)
(1,273
)
(324
)
(2,561
)
Consolidated
$
8,698

$
8,296

$
9,397

$
8,793

$
7,805

$
34,291

$
8,314

$
36,218


Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.

1 The only difference between net operating revenues and comparable net operating revenues is the impact of our economic (nondesignated) hedges.

4

Exhibit 99.1

The Coca-Cola Company and Subsidiaries                                    
Reclassified Operating Segment and Corporate Data
Unaudited
(In millions)

 
1Q19
1Q18
2Q18
3Q18
4Q18
FY18
4Q17
FY17
Operating Income (Loss)
 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
978

$
914

$
1,093

$
933

$
753

$
3,693

$
756

$
3,585

Latin America
496

571

593

640

514

2,318

590

2,215

North America
586

503

648

663

504

2,318

583

2,472

Asia Pacific
542

562

703

614

392

2,271

320

2,136

Global Ventures
66

29

37

44

42

152

33

159

Bottling Investments
100

(325
)
(17
)
24

121

(197
)
(20
)
(806
)
Corporate
(333
)
(307
)
(291
)
(304
)
(501
)
(1,403
)
(752
)
(2,006
)
Consolidated
$
2,435

$
1,947

$
2,766

$
2,614

$
1,825

$
9,152

$
1,510

$
7,755

 
 
 
 
 
 
 
 
 
Comparable Operating Income (Loss) (Non-GAAP)
 
 
 
 
 
 
 
 
Europe, Middle East & Africa
$
979

$
916

$
1,093

$
929

$
752

$
3,690

$
780

$
3,611

Latin America
496

573

594

639

516

2,322

594

2,222

North America
582

536

709

701

584

2,530

688

2,699

Asia Pacific
542

562

704

612

389

2,267

326

2,146

Global Ventures
66

29

37

44

42

152

33

159

Bottling Investments
21

30

(9
)
(14
)
54

61

55

203

Corporate
(230
)
(269
)
(256
)
(212
)
(399
)
(1,136
)
(464
)
(1,434
)
Consolidated
$
2,456

$
2,377

$
2,872

$
2,699

$
1,938

$
9,886

$
2,012

$
9,606


Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.





5

Exhibit 99.1


The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
 
The company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). To supplement our financial results reported on a GAAP basis, we provide the following non-GAAP financial measures: "comparable net revenues", "comparable operating income" and "comparable EPS," each of which are defined below. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
DEFINITIONS
•
"Comparable net revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). Management believes the comparable net revenues (non-GAAP) measure provides investors with useful supplemental information to enhance their understanding of the company's revenue performance and trends by improving their ability to compare our period-to-period results.
•
"Comparable operating income" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). Management uses this non-GAAP financial measure to evaluate the company's performance and make resource allocation decisions. Further, management believes the comparable operating income (non-GAAP) measure enhances its ability to communicate the underlying operating results and provides 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" is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed further below). Management uses this non-GAAP financial measure to evaluate the company's performance and make resource allocation decisions. Further, management believes the comparable EPS (non-GAAP) measure enhances its ability to communicate the underlying operating results and provides 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.
ITEMS IMPACTING COMPARABILITY
The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine which items to consider as "items impacting comparability" based on how management views our business; makes financial, operating, compensation and planning decisions; and evaluates the company's ongoing performance. Items such as charges, gains and accounting changes which are viewed by management as impacting only the current period or the comparable period, but not both, or as pertaining to different and unrelated underlying activities or events across comparable periods, are generally considered "items impacting comparability." Items impacting comparability include, but are not limited to, asset impairments, charges related to our productivity and reinvestment initiatives, and transaction gains/losses, in each case when exceeding a U.S. dollar threshold. Also included are our proportionate share of similar items incurred by our equity method investees, timing differences related to our economic (nondesignated) hedging activities, and timing differences related to unrealized mark-to-market adjustments of equity securities and trading debt securities, regardless of size.


6

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited

Productivity and Reinvestment
During the periods presented, the company incurred costs related to our productivity and reinvestment initiatives. These initiatives are focused on four key areas: restructuring the company's global supply chain; implementing zero-based work, an evolution of zero-based budget principles across the organization; streamlining and simplifying the company's operating model; and further driving increased discipline and efficiency in direct marketing investments. The savings realized from the program will enable the company to fund marketing initiatives and innovation required to deliver sustainable net revenue growth. The savings will also support margin expansion and increased returns on invested capital over time.
Equity Investees
During the periods presented, the company recorded net charges or net gains representing the company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
Transaction Gains/Losses
Transaction gains/losses represent the gains and losses the company incurs when acquiring or divesting of certain operations and investments.
North America Refranchising
Throughout the periods presented, the company refranchised its North America bottling territories to certain of its bottling partners. In conjunction with these refranchising transactions, the company incurred net losses, primarily related to the derecognition of the intangible assets transferred or reclassified as held for sale during the periods and certain post-closing adjustments. The company also incurred certain costs to refranchise these bottling territories. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, special termination benefits, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling system ("North America refranchising costs"). The company also made payments to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements ("North America conversion costs").
CCBA Unrecognized Depreciation and Amortization
These amounts represent the depreciation and amortization that the company would have recorded during the periods presented had CCBA not been classified as held for sale.
Other Items
Economic (Nondesignated) Hedges
The company uses derivatives as economic hedges primarily to mitigate the foreign exchange risk for certain currencies and the price risk associated with the purchase of materials used in the manufacturing process as well as the purchase of vehicle fuel. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in fair values of these economic hedges are immediately recognized into earnings. The company excludes the net impact of mark-to-market adjustments for outstanding hedges and realized gains/losses for settled hedges from our non-GAAP financial information until the period in which the underlying exposure being hedged impacts our condensed consolidated statement of income. Management believes this adjustment provides meaningful information related to the impact of our economic hedging activities.
Unrealized Gains and Losses on Equity and Trading Debt Securities
The company excludes the net impact of unrealized gains and losses resulting from mark-to-market adjustments on our equity and trading debt securities from our non-GAAP financial information until the period in which the underlying securities are sold and the associated gains or losses are realized. Management believes this adjustment provides meaningful information related to the impact of our investments in equity and trading debt securities.

7

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
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)
$
8,694

$
3,365

$
5,329

61.3
%
$
2,767

$
127

$
2,435

28.0
%
Items Impacting Comparability:
 
 
 
 
 
 
 
 
Productivity and Reinvestment
—

—

—


—

(68
)
68


Transaction Gains/Losses
—

—

—


—

(57
)
57


CCBA Unrecognized Depreciation and Amortization
—

23

(23
)

65

—

(88
)

Other Items
4

22

(18
)

—

(2
)
(16
)

Comparable (Non-GAAP)
$
8,698

$
3,410

$
5,288

60.8
%
$
2,832

$
—

$
2,456

28.2
%

 
Three Months Ended March 29, 2019
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
245

$
133

$
(231
)
$
2,225

$
522

23.5
%
$
1,678

$
0.39

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

CCBA Unrecognized Depreciation and Amortization
—

—

—

(88
)
(25
)

(40
)
(0.01
)
Other Items
—

—

(162
)
(178
)
(40
)

(138
)
(0.03
)
Certain Tax Matters
—

—

—

—

22


(22
)
(0.01
)
Comparable (Non-GAAP)
$
245

$
175

$
40

$
2,559

$
509

19.9
%
$
2,048

$
0.48


Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $286 million related to Coca-Cola Bottlers Japan Holdings Inc., an equity method investee, and charges of $57 million related to one of our equity method investees in North America.
•
Transaction gains/losses include a $121 million loss in conjunction with our acquisition of the remaining equity ownership interest in C.H.I. Limited, $46 million of transaction costs associated with the purchase of Costa Limited, which we acquired in January 2019, $11 million of charges primarily related to North America refranchising costs, charges of $4 million related to North America conversion payments, and other charges of $4 million related to the refranchising of certain bottling territories in North America. These charges were partially offset by a gain of $39 million related to the sale of a portion of our equity ownership interest in Embotelladora Andina S.A.
•
Other items include a $161 million net gain related to unrealized gains and losses on our equity and trading debt securities and a $19 million net gain related to our economic hedging activities, which were partially offset by charges of $2 million primarily related to tax litigation expense.
•
Certain tax matters include $27 million of excess tax benefits associated with the company's stock-based compensation arrangements, partially offset by a net tax charge of $5 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters.

8

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
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)
$
8,298

$
3,076

$
5,222

62.9
%
$
2,739

$
536

$
1,947

23.5
%
Items Impacting Comparability:








Asset Impairments
—

—

—


—

(390
)
390


Productivity and Reinvestment
—

—

—


—

(95
)
95


Transaction Gains/Losses
—

—

—


—

(45
)
45


CCBA Unrecognized Depreciation and Amortization
—

25

(25
)

71

—

(96
)

Other Items
(2
)
9

(11
)

(1
)
(6
)
(4
)

Comparable (Non-GAAP)
$
8,296

$
3,110

$
5,186

62.5
%
$
2,809

$
—

$
2,377

28.6
%

 
Three Months Ended March 30, 2018
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
236

$
141

$
(73
)
$
1,945

$
545

28.0
%
$
1,368

$
0.32

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

CCBA Unrecognized Depreciation and Amortization
—

—

—

(96
)
(27
)

(44
)
(0.01
)
Other Items
—

—

97

93

23


70

0.02

Certain Tax Matters
—

—

—

—

(126
)

126

0.03

Comparable (Non-GAAP)
$
236

$
192

$
78

$
2,577

$
550

21.3
%
$
2,020

$
0.47

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $390 million related to Coca-Cola Refreshments ("CCR") assets.
•
Transaction gains/losses include charges of $45 million primarily related to North America refranchising costs, a net loss of $33 million primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the company's former Russian juice operations, charges of $19 million related to North America conversion payments and other charges of $2 million related to the refranchising of certain bottling territories in North America.
•
Other items include a net loss of $97 million related to unrealized mark-to-market adjustments of equity securities and charges of $6 million primarily related to tax litigation expense, which were partially offset by a $10 million net gain related to our economic hedging activities.
•
Certain tax matters include $176 million of income tax expense primarily as a result of adjustments to our provisional remeasurement of deferred taxes recorded as of December 31, 2017 related to the Tax Cuts and Jobs Act ("Tax Reform Act") and a net tax charge of $34 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters. These charges were partially offset by $84 million of excess tax benefits recorded in association with the company's stock-based compensation arrangements.

9

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Three Months Ended June 29, 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)
$
9,421

$
3,543

$
5,878

62.4
%
$
2,887

$
225

$
2,766

29.4
%
Items Impacting Comparability:








Asset Impairments
—

—

—


—

(60
)
60


Productivity and Reinvestment
—

—

—


—

(111
)
111


Transaction Gains/Losses
—

—

—


—

(37
)
37


CCBA Unrecognized Depreciation and Amortization
—

24

(24
)

73

—

(97
)

Other Items
(24
)
(1
)
(23
)

(1
)
(17
)
(5
)

Comparable (Non-GAAP)
$
9,397

$
3,566

$
5,831

62.0
%
$
2,959

$
—

$
2,872

30.6
%

 
Three Months Ended June 29, 2018
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
247

$
324

$
(74
)
$
2,942

$
611

20.7
%
$
2,316

$
0.54

Items Impacting Comparability:








Asset Impairments
—

—

52

112

16


96

0.02

Productivity and Reinvestment
—

—

39

150

34


116

0.03

Equity Investees
—

33

—

33

1


32

0.01

Transaction Gains/Losses
—

—

115

152

16


136

0.03

CCBA Unrecognized Depreciation and Amortization
—

—

—

(97
)
(28
)

(44
)
(0.01
)
Other Items
—

—

(25
)
(30
)
(5
)

(25
)
(0.01
)
Certain Tax Matters
—

—

—

—

37


(37
)
(0.01
)
Comparable (Non-GAAP)
$
247

$
357

$
107

$
3,262

$
682

20.9
%
$
2,590

$
0.60

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $60 million related to CCR assets and an impairment charge of $52 million related to one of our equity method investees.
•
Transaction gains/losses include net charges of $102 million related related to the refranchising of certain bottling territories in North America, charges of $47 million due to pension settlements, charges of $34 million related to North America refranchising costs, charges of $3 million for noncapitalizable transaction costs associated with pending and closed transactions, and charges of $2 million related to North America conversion payments. These charges were partially offset by a net gain of $36 million due to the refranchising of our Latin American bottling operations.
•
Other items include a net gain of $25 million related to realized and unrealized gains and losses on equity securities and trading debt securities and a $22 million net gain related to our economic hedging activities, which were partially offset by charges of $22 million primarily related to tax litigation expense.
•
Certain tax matters include $42 million of income tax benefit primarily as a result of adjustments to our provisional remeasurement of deferred taxes recorded as of December 31, 2017 related to the Tax Reform Act and $3 million of excess tax benefits associated with the company's stock-based compensation arrangements. These benefits were partially offset by net tax charges of $8 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters.

10

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Three Months Ended September 28, 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)
$
8,775

$
3,346

$
5,429

61.9
%
$
2,660

$
155

$
2,614

29.8
%
Items Impacting Comparability:








Productivity and Reinvestment
—

—

—


—

(107
)
107


Transaction Gains/Losses
—

—

—


—

(44
)
44


CCBA Unrecognized Depreciation and Amortization
—

22

(22
)

68

—

(90
)

Other Items
18

(2
)
20


—

(4
)
24


Comparable (Non-GAAP)
$
8,793

$
3,366

$
5,427

61.7
%
$
2,728

$
—

$
2,699

30.7
%

 
Three Months Ended September 28, 2018
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
214

$
348

$
(546
)
$
2,373

$
555

23.4
%
$
1,880

$
0.44

Items Impacting Comparability:








Asset Impairments
—

—

205

205

—


205

0.05

Productivity and Reinvestment
—

—

25

132

31


101

0.02

Equity Investees
—

(19
)
—

(19
)
(7
)

(12
)
—

Transaction Gains/Losses
—

—

460

504

(107
)

533

0.12

CCBA Unrecognized Depreciation and Amortization
—

—

—

(90
)
(26
)

(41
)
(0.01
)
Other Items
27

—

(65
)
(68
)
(17
)

(51
)
(0.01
)
Certain Tax Matters
—

—

—

—

149


(149
)
(0.03
)
Comparable (Non-GAAP)
$
241

$
329

$
79

$
3,037

$
578

19.0
%
$
2,466

$
0.57

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include a charge of $205 million related to PT Coca-Cola Bottling Indonesia, an equity method investee.
•
Transaction gains/losses include charges of $554 million related to CCBA assets which were held for sale, net charges of $275 million primarily related to refranchising certain North America bottling territories, charges of $38 million related to North America refranchising costs, charges of $12 million related to North America conversion payments, and charges of $6 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were partially offset by a net gain of $370 million related to the sale of our equity ownership in Corporación Lindley S.A. ("Lindley") and a net gain of $11 million due to the refranchising of our Latin American bottling operations.
•
Other items include a net gain of $32 million related to realized and unrealized gains and losses on equity securities and trading debt securities, a net gain of $27 million related to the early extinguishment of long-term debt and a $13 million net gain related to our economic hedging activities, which were partially offset by charges of $4 million primarily related to tax litigation expense.
•
Certain tax matters include $125 million of income tax benefit primarily as a result of adjustments to our provisional remeasurement of deferred taxes recorded as of December 31, 2017 related to the Tax Reform Act and $27 million of excess tax benefits associated with the company's stock-based compensation arrangements. These benefits were partially offset by net tax charges of $3 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters.


11

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Three Months Ended December 31, 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)
$
7,806

$
3,102

$
4,704

60.3
%
$
2,716

$
163

$
1,825

23.4
%
Items Impacting Comparability:








Productivity and Reinvestment
—

—

—


—

(127
)
127


Transaction Gains/Losses
—

—

—


—

(32
)
32


CCBA Unrecognized Depreciation and Amortization
—

21

(21
)

68

—

(89
)

Other Items
(1
)
(40
)
39


—

(4
)
43


Comparable (Non-GAAP)
$
7,805

$
3,083

$
4,722

60.5
%
$
2,784

$
—

$
1,938

24.8
%

 
Three Months Ended December 31, 2018
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
253

$
195

$
(981
)
$
965

$
38

4.0
%
$
870

$
0.20

Items Impacting Comparability:








Asset Impairments
—

—

334

334

—


334

0.08

Productivity and Reinvestment
—

—

4

131

32


99

0.02

Equity Investees
—

46

—

46

2


44

0.01

Transaction Gains/Losses
—

—

306

338

78


260

0.06

CCBA Unrecognized Depreciation and Amortization
—

—

—

(89
)
(24
)

(41
)
(0.01
)
Other Items
—

—

411

454

109


345

0.08

Certain Tax Matters
—

—

—

—

32


(32
)
(0.01
)
Comparable (Non-GAAP)
$
253

$
241

$
74

$
2,179

$
267

12.2
%
$
1,879

$
0.44

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $334 million related to certain equity method investees in the Middle East.
•
Transaction gains/losses include charges of $102 million due to pension settlements as a result of North America refranchising activities, net charges of $97 million related to the refranchising of certain bottling territories in North America, a net loss of $74 million related to the sale of our equity ownership in Lindley, a net loss of $32 million related to acquiring a controlling interest in the Philippine bottling operations, charges of $22 million related to North America refranchising costs, charges of $10 million for noncapitalizable transaction costs associated with pending and closed transactions, and charges of $1 million related to North America conversion payments.
•
Other items include a $288 million net loss related to unrealized gains and losses on our equity and trading debt securities, a $162 million net loss related to our economic hedging activities, and charges of $2 million primarily related to tax litigation expense.
•
Certain tax matters include a net tax benefit of $42 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters and a net tax benefit of $1 million primarily as a result of adjustments to our provisional remeasurement of deferred taxes as well as remeasurement of the transition tax liability recorded related to the Tax Reform Act. These benefits were partially offset by a net tax charge of $11 million associated with the company's stock-based compensation arrangements.

12

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Year Ended December 31, 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)
$
34,300

$
13,067

$
21,233

61.9
%
$
11,002

$
1,079

$
9,152

26.7
%
Items Impacting Comparability:








Asset Impairments
—

—

—


—

(450
)
450


Productivity and Reinvestment
—

—

—


—

(440
)
440


Transaction Gains/Losses
—

—

—


—

(158
)
158


CCBA Unrecognized Depreciation and Amortization
—

92

(92
)

280

—

(372
)

Other Items
(9
)
(34
)
25


(2
)
(31
)
58


Comparable (Non-GAAP)
$
34,291

$
13,125

$
21,166

61.7
%
$
11,280

$
—

$
9,886

28.8
%

 
Year Ended December 31, 2018
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
950

$
1,008

$
(1,674
)
$
8,225

$
1,749

21.3
%
$
6,434

$
1.50

Items Impacting Comparability:








Asset Impairments
—

—

591

1,041

116


925

0.22

Productivity and Reinvestment
—

—

68

508

120


388

0.09

Equity Investees
—

111

—

111

(9
)

120

0.03

Transaction Gains/Losses
—

—

935

1,093

4


1,011

0.24

CCBA Unrecognized Depreciation and Amortization
—

—

—

(372
)
(105
)

(170
)
(0.04
)
Other Items
27

—

418

449

110


339

0.08

Certain Tax Matters
—

—

—

—

92


(92
)
(0.02
)
Comparable (Non-GAAP)
$
977

$
1,119

$
338

$
11,055

$
2,077

18.8
%
$
8,955

$
2.08

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $450 million related to CCR assets, charges of $334 million related to certain equity method investees in the Middle East, a charge of $205 million related to an equity method investee in Indonesia, and a charge of $52 million related to one of our equity method investees in Latin America.
•
Transaction gains/losses include charges of $554 million related to CCBA assets which were held for sale, net charges of $476 million related to the refranchising of certain bottling territories in North America, charges of $149 million due to pension settlements as a result of North America refranchising activities, charges of $139 million primarily related to North America refranchising costs, charges of $34 million related to North America conversion payments, charges of $33 million primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the company's former Russian juice operations, a net loss of $32 million related to acquiring a controlling interest in the Philippine bottling operations, and charges of $19 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were partially offset by a net gain of $296 million related to the sale of our equity ownership in Lindley and a net gain of $47 million due to the refranchising of our Latin American bottling operations.
•
Other items include a $328 million net loss related to unrealized gains and losses on our equity and trading debt securities, a $117 million net loss related to our economic hedging activities, and charges of $33 million primarily related to tax litigation expense. These charges were partially offset by a net gain of $27 million related to the early extinguishment of long-term debt.
•
Certain tax matters include a net tax benefit of $103 million associated with the company's stock-based compensation arrangements. This benefit was partially offset by a net tax expense of $8 million primarily as a result of adjustments to our provisional remeasurement of deferred taxes as well as remeasurement of the transition tax liability recorded related to the Tax Reform Act, and a net tax charge of $3 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters.

13

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Three Months Ended December 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)
$
8,314

$
3,155

$
5,159

62.1
%
$
3,057

$
592

$
1,510

18.2
%
Items Impacting Comparability:








Productivity and Reinvestment
—

—

—


—

(179
)
179


Transaction Gains/Losses
—

—

—


—

(160
)
160


CCBA Unrecognized Depreciation and Amortization
—

24

(24
)

66

—

(90
)

Other Items
—

1

(1
)

(1
)
(253
)
253


Comparable (Non-GAAP)
$
8,314

$
3,180

$
5,134

61.8
%
$
3,122

$
—

$
2,012

24.2
%

 
Three Months Ended December 31, 2017
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income (loss)2
Diluted net income (loss) per share
Reported (GAAP)
$
222

$
189

$
(576
)
$
1,085

$
3,802

350.4
%
$
(2,752
)
$
(0.65
)
Items Impacting Comparability:








Productivity and Reinvestment
—

—

116

295

103


192

0.05

Equity Investees
—

55

—

55

13


42

0.01

Transaction Gains/Losses
—

—

501

661

255


406

0.10

CCBA Unrecognized Depreciation and Amortization
—

—

—

(90
)
(26
)

(40
)
(0.01
)
Other Items
—

—

2

255

96


159

0.04

Certain Tax Matters
—

—

—

—

(3,693
)

3,693

0.87

Impact of Dilutive Securities
—

—

—

—

—



—

(0.01
)
Comparable (Non-GAAP)
$
222

$
244

$
43

$
2,261

$
550

24.3
%
$
1,700

$
0.40

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below as well as the tax impact resulting form the accrual of tax on temporary differences related to the investments in foreign subsidiaries that are expected to reverse in the foreseeable future.
2 
Represents net income attributable to shareowners of the company.
•
Transaction gains/losses include net charges of $667 million related to the refranchising of certain bottling territories in North America, charges of $105 million related to North America refranchising costs, charges of $26 million related to North America conversion payments, and charges of $13 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were partially offset by a gain of $150 million related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value.
•
Other items include a charge of $225 million due to a contribution the company made to The Coca-Cola Foundation, charges of $24 million related to tax litigation expense, and a $2 million net loss related to our economic hedging activities.
•
Certain tax matters include a net provisional tax charge of $3,610 million as a result of the Tax Reform Act and net tax charges of $94 million related to uncertain tax positions, including interest and penalties, as well as the impact of the reversal of valuation allowances in certain foreign jurisdictions. These charges were partially offset by $11 million of excess tax benefits associated with the company's stock-based compensation arrangements.



14

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions except per share data)

 
Year Ended December 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)
$
36,212

$
13,721

$
22,491

62.1
%
$
12,834

$
1,902

$
7,755

21.4
%
Items Impacting Comparability:








Asset Impairments
—

—

—


—

(737
)
737


Productivity and Reinvestment
—

—

—


—

(534
)
534


Transaction Gains/Losses
—

(3
)
3


—

(299
)
302


CCBA Unrecognized Depreciation and Amortization
—

24

(24
)

66

—

(90
)

Other Items
6

(28
)
34


(2
)
(332
)
368


Comparable (Non-GAAP)
$
36,218

$
13,714

$
22,504

62.1
%
$
12,898

$
—

$
9,606

26.5
%

 
Year Ended December 31, 2017
 
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income before income taxes
Income
taxes1 
Effective
tax rate
Net income2
Diluted net income per share
Reported (GAAP)
$
853

$
1,072

$
(1,763
)
$
6,890

$
5,607

81.4
%
$
1,248

$
0.29

Items Impacting Comparability:








Asset Impairments
—

—

50

787

156


631

0.15

Productivity and Reinvestment
—

—

116

650

230


420

0.10

Equity Investees
—

92

—

92

22


70

0.02

Transaction Gains/Losses
—

—

1,910

2,212

83


2,129

0.49

CCBA Unrecognized Depreciation and Amortization
—

—

—

(90
)
(26
)

(40
)
(0.01
)
Other Items
(38
)
—

—

406

146


260

0.06

Certain Tax Matters
—

—

—

—

(3,583
)

3,583

0.83

Comparable (Non-GAAP)
$
815

$
1,164

$
313

$
10,947

$
2,635

24.1
%
$
8,301

$
1.92

Note: Certain columns may not add due to rounding. Certain percentages may not recalculate using the rounded dollar amounts provided. Reclassified data reflect the reclassification of CCBA from discontinued operations into continuing operations.
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 discussed below as well as the tax impact resulting form the accrual of tax on temporary differences related to the investments in foreign subsidiaries that are expected to reverse in the foreseeable future.
2 
Represents net income attributable to shareowners of the company.
•
Asset impairments include charges of $737 million related to CCR assets and a $50 million charge related to an international equity method investee.
•
Transaction gains/losses include net charges of $2,140 million related to the refranchising of certain bottling territories in North America, charges of $422 million related to North America refranchising costs, charges of $313 million related to North America conversion payments, a charge of $26 million related to our former German bottling operations, and charges of $19 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were partially offset by a gain of $445 million related to the integration of Coca-Cola West Co., Ltd. and Coca-Cola East Japan Co., Ltd. to establish Coca-Cola Bottlers Japan Inc., now known as Coca-Cola Bottlers Japan Holdings Inc., as well as a gain of $150 million related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value, a gain of $88 million related to the refranchising of our China bottling operations and the sale of a related cost method investment, and a gain of $25 million related to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock at a per share amount greater than the carrying value of the company's per share investment.
•
Other items include a charge of $225 million due to a contribution the company made to The Coca-Cola Foundation, charges of $67 million related to tax litigation expense, a net charge of $38 million related to the extinguishment of long-term debt, a $36 million net loss related to our economic hedging activities, and impairment charges of $34 million related to Venezuelan intangible assets.
•
Certain tax matters include a net provisional tax charge of $3,610 million as a result of the Tax Reform Act and net tax charges of $106 million related to uncertain tax positions, including interest and penalties, as well as the impact of the reversal of valuation allowances in certain foreign jurisdictions. These charges were partially offset by $133 million of excess tax benefits associated with the company's stock-based compensation arrangements.

15

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment and Corporate Data
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions)
 
Operating Income (Loss) for 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

$
100

$
(333
)
$
2,435

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Productivity and Reinvestment
1

—

17

—

—

2

48

68

Transaction Gains/Losses
—

—

—

—

—

11

46

57

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(88
)
—

(88
)
Other Items
—

—

(21
)
—

—

(4
)
9

(16
)
Comparable (Non-GAAP)
$
979

$
496

$
582

$
542

$
66

$
21

$
(230
)
$
2,456

 
 
 
 
 
 
 
 
 
 
Operating Income (Loss) for 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

$
(325
)
$
(307
)
$
1,947

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Asset Impairments
—

—

—

—

—

390

—

390

Productivity and Reinvestment
2

2

52

—

—

6

33

95

Transaction Gains/Losses
—

—

—

—

—

45

—

45

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(96
)
—

(96
)
Other Items
—

—

(19
)
—

—

10

5

(4
)
Comparable (Non-GAAP)
$
916

$
573

$
536

$
562

$
29

$
30

$
(269
)
$
2,377


Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.




16

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment and Corporate Data
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions)
 
Operating Income (Loss) for Three Months Ended June 29, 2018
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
1,093

$
593

$
648

$
703

$
37

$
(17
)
$
(291
)
$
2,766

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Asset Impairments
—

—

—

—

—

60

—

60

Productivity & Reinvestment
—

1

47

1

—

16

46

111

Transaction Gains/Losses
—

—

—

—

—

34

3

37

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(97
)
—

(97
)
Other Items
—

—

14

—

—

(5
)
(14
)
(5
)
Comparable (Non-GAAP)
$
1,093

$
594

$
709

$
704

$
37

$
(9
)
$
(256
)
$
2,872

 
 
 
 
 
 
 
 
 
 
Operating Income (Loss) for Three Months Ended September 28, 2018
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
933

$
640

$
663

$
614

$
44

$
24

$
(304
)
$
2,614

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Productivity and Reinvestment
(4
)
(1
)
39

(2
)
—

10

65

107

Transaction Gains/Losses
—

—

—

—

—

37

7

44

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(90
)
—

(90
)
Other Items
—

—

(1
)
—

—

5

20

24

Comparable (Non-GAAP)
$
929

$
639

$
701

$
612

$
44

$
(14
)
$
(212
)
$
2,699

Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.
















17

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment and Corporate Data
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions)
 
Operating Income (Loss) for Three Months Ended December 31, 2018
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
753

$
514

$
504

$
392

$
42

$
121

$
(501
)
$
1,825

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Productivity & Reinvestment
(1
)
2

37

(3
)
—

(1
)
93

127

Transaction Gains/Losses
—

—

—

—

—

22

10

32

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(89
)
—

(89
)
Other Items
—

—

43

—

—

1

(1
)
43

Comparable (Non-GAAP)
$
752

$
516

$
584

$
389

$
42

$
54

$
(399
)
$
1,938

 
 
 
 
 
 
 
 
 
 
Operating Income (Loss) for Year Ended December 31, 2018
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
3,693

$
2,318

$
2,318

$
2,271

$
152

$
(197
)
$
(1,403
)
$
9,152

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Asset Impairments
—

—

—

—

—

450

—

450

Productivity & Reinvestment
(3
)
4

175

(4
)
—

31

237

440

Transaction Gains/Losses
—

—

—

—

—

138

20

158

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(372
)
—

(372
)
Other Items
—

—

37

—

—

11

10

58

Comparable (Non-GAAP)
$
3,690

$
2,322

$
2,530

$
2,267

$
152

$
61

$
(1,136
)
$
9,886

Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.











18

Exhibit 99.1

The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment and Corporate Data
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
(In millions)

 
Operating Income (Loss) for Three Months Ended December 31, 2017
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
756

$
590

$
583

$
320

$
33

$
(20
)
$
(752
)
$
1,510

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Productivity & Reinvestment
24

4

110

6

—

18

17

179

Transaction Gains/Losses
—

—

—

—

—

146

14

160

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(90
)
—

(90
)
Other Items
—

—

(5
)
—

—

1

257

253

Comparable (Non-GAAP)
$
780

$
594

$
688

$
326

$
33

$
55

$
(464
)
$
2,012

 
 
 
 
 
 
 
 
 
 
Operating Income (Loss) for Year Ended December 31, 2017
 
Europe, Middle East & Africa
Latin America
North America
Asia Pacific
Global Ventures
Bottling Investments
Corporate
Consolidated
Reported (GAAP)
$
3,585

$
2,215

$
2,472

$
2,136

$
159

$
(806
)
$
(2,006
)
$
7,755

Items Impacting Comparability:
 
 
 
 
 
 
 
 
Asset Impairments
—

—

—

—

—

737

—

737

Productivity & Reinvestment
26

7

241

10

—

57

193

534

Transaction Gains/Losses
—

—

—

—

—

281

21

302

CCBA Unrecognized Depreciation and Amortization
—

—

—

—

—

(90
)
—

(90
)
Other Items
—

—

(14
)
—

—

24

358

368

Comparable (Non-GAAP)
$
3,611

$
2,222

$
2,699

$
2,146

$
159

$
203

$
(1,434
)
$
9,606

Note: Reclassified operating segment and Corporate data reflect the reclassification of CCBA from discontinued operations into continuing operations. CCBA is included in the Bottling Investments operating segment.


19