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