The Coca-Cola Company 2009 Third Quarter and Year-to-Date Results
Today, our Company reports continued growth in worldwide unit case volume, which drove gains in global volume and value share, with year-to-date revenue growth in line with our long-term target and profit growth exceeding our long-term target.
-- International unit case volume growth of 4 percent in the quarter and
year-to-date led to solid worldwide unit case volume growth of 2 percent
in the quarter and year-to-date.
-- Third quarter reported EPS was $0.81, even with the prior year quarter.
Comparable EPS was $0.82, down 1 percent versus the prior year quarter
reflecting a negative currency impact.
-- Reported operating income decreased 2 percent in the quarter and
decreased 4 percent year-to-date. Comparable currency neutral operating
income growth of 9 percent in the quarter and year-to-date, exceeding
our long-term growth target.
-- Strong cash generation, with year-to-date cash from operations of $6.3
billion, an increase of 11 percent versus the prior year period.
-- Global volume and value share gains continued for the ninth consecutive
quarter.
-- Productivity initiatives well on track to achieve $500 million in
annualized savings by year-end 2011; with plans to deliver more than
half of the savings by year-end 2009.
ATLANTA--(BUSINESS WIRE)-- The Coca-Cola Company reports sound third quarter 2009 operating results with unit case volume increasing 2 percent, successfully cycling 5 percent growth in the prior year quarter. Internationally, we achieved broad-based unit case volume growth of 4 percent, cycling 7 percent growth in the prior year quarter. In the quarter, unit case volume growth increased strongly in key emerging markets with 37 percent growth in India, 15 percent growth in China and 3 percent growth in Brazil.
Globally, we gained volume and value share in nonalcoholic ready-to-drink beverages for the ninth consecutive quarter. The global "Open Happiness" campaign continued to fuel growth of brand Coca-Cola. Notably, brand Coca-Cola unit case volume growth was strong, up 2 percent in the quarter, across both developed and emerging markets including 8 percent growth in Mexico, 6 percent growth in Italy, 27 percent growth in India and 3 percent growth in China. Total sparkling beverage unit case volume increased 1 percent in the quarter, with international sparkling beverage unit case volume increasing 2 percent, cycling 5 percent growth in the prior year quarter. Total still beverage unit case volume increased 7 percent in the quarter, led by sound growth across the portfolio, including juices and fruit stills, teas and water brands. Still beverage unit case volume increased 10 percent internationally and was even in North America.
"I am pleased to report that we have again delivered solid results this quarter," said Muhtar Kent, chairman and chief executive officer, The Coca-Cola Company. "We continue to grow our currency neutral revenues, gain global nonalcoholic ready-to-drink volume and value share, expand our margins and invest in our business, all while generating tremendous cash flow. The fundamentals of our business remain strong and our franchise system is delivering results that keep us on track to achieve our long-term growth expectations. Although we expect the consumer to continue facing economic uncertainties into 2010 and for consumer sentiment to recover slowly, we believe more than ever that we have the right strategies being executed, the right leadership team in place and have taken the right actions this year to drive continued growth and to make the most of the abundant opportunities before us."
"This is a dynamic time in the history and evolution of our Company," said Mr. Kent. "With our 2020 Vision, we have a clear Coca-Cola system vision for the future of our business, and we are applying that vision in our strategic planning, system alignment and focused execution. Each day we work diligently to make our Company stronger for the future and to ensure that we continue driving long-term sustainable results, while delivering the beverages that consumers love."
FINANCIAL HIGHLIGHTS
-- Year-to-date reported net revenues decreased 5 percent. After excluding
structural items, year-to-date net revenues increased 5 percent on a
comparable currency neutral basis, in line with our long-term growth
target.
-- Year-to-date reported operating income decreased 4 percent. With
continued focus on cost management and by leveraging our productivity
initiatives, year-to-date operating income increased 9 percent on a
comparable currency neutral basis, exceeding our long-term growth
target.
-- Year-to-date cash from operations increased to $6.3 billion, and we
repurchased $241 million of our stock in the third quarter.
OPERATING REVIEW
Three Months Ended October 2, 2009
% Favorable / (Unfavorable)
Comparable
Currency
Unit Case Operating
Net Revenues Neutral
Volume Income
Operating
Income
Total Company 2 (4) (2) 9
Eurasia & Africa 2 (9) 2 13
Europe (2) (10) (3) 7
Latin America 7 (3) 0 18
North America (4) (2) 10 9
Pacific 6 (1) (10) (17)
Bottling Investments 4 (4) 26 56
Nine Months Ended October 2, 2009
% Favorable / (Unfavorable)
Comparable
Currency
Unit Case Operating
Net Revenues Neutral
Volume Income
Operating
Income
Total Company 2 (5) (4) 9
Eurasia & Africa 4 (9) (6) 13
Europe (1) (13) (9) 4
Latin America 6 (5) (7) 15
North America (2) 1 12 13
Pacific 5 4 1 (3)
Bottling Investments (1) (12) (43) 24
Eurasia & Africa
-- Our Eurasia and Africa Group's unit case volume increased 2 percent in
the quarter, cycling 9 percent growth in the prior year quarter.
Year-to-date unit case volume increased 4 percent, cycling 7 percent
growth in the prior year period. Net revenues for the quarter decreased
9 percent, reflecting a 6 percent increase in concentrate sales offset
by a double-digit negative impact from currencies and negative pricing
and mix. Reported operating income increased 2 percent in the quarter.
Comparable currency neutral operating income increased 13 percent due to
the increase in concentrate sales and tight expense management.
-- In Eurasia and Africa, sparkling beverages increased 1 percent and still
beverages increased 7 percent in the quarter. The growth in unit case
volume was led by a 37 percent increase in India, which cycled an 18
percent increase in the prior year. Africa also reported strong unit
case volume growth in the quarter with the East and Central Region
growing 11 percent, cycling 7 percent growth in the prior year, and the
North and West Region growing 5 percent, cycling 9 percent growth in the
prior year. Reflecting the impact of a continued challenging economic
environment, Russia reported a double-digit unit case volume decline but
gained share in nonalcoholic ready-to-drink beverages.
-- In the quarter, Eurasia and Africa gained volume and value share in
nonalcoholic ready-to-drink beverages. India gained volume and value
share across most categories including sparkling, still and juice and
juice drinks.
Europe
-- Our Europe Group's unit case volume decreased 2 percent in the quarter,
cycling 3 percent growth in the prior year quarter, reflecting a
challenging macroeconomic environment. Year-to-date unit case volume
decreased 1 percent, cycling 2 percent growth in the prior year period.
Net revenues for the quarter decreased 10 percent, primarily driven by a
double-digit negative impact from currencies and a 1 percent decrease in
concentrate sales, partially offset by positive pricing and mix.
Reported operating income decreased 3 percent in the quarter. Comparable
currency neutral operating income increased 7 percent benefiting from
tight expense management.
-- Unit case volume growth in Northwest Europe was offset by weakness in
Spain and Eastern Europe due to significant macroeconomic challenges in
those regions.
-- In the quarter, Europe gained volume and value share in nonalcoholic
ready-to-drink beverages and gained value share across all key
countries.
Latin America
-- Our Latin America Group continued to deliver strong unit case volume
growth with 7 percent growth in the quarter, cycling 8 percent growth in
the prior year quarter. Year-to-date unit case volume increased 6
percent, cycling 8 percent growth in the prior year period. Net revenues
for the quarter decreased 3 percent, primarily due to a double-digit
negative impact from currencies, partially offset by a 6 percent
increase in concentrate sales and a double-digit positive impact from
pricing and mix. Reported operating income was even with the prior year
quarter. Comparable currency neutral operating income increased 18
percent primarily reflecting the higher concentrate sales and positive
pricing and mix partially offset by continued investment in key
marketing and business initiatives.
-- Strong unit case volume growth in the quarter was led by a 9 percent
increase in Mexico, a 3 percent increase in Brazil and an 11 percent
increase in our Latin Center Region.
-- Latin America delivered growth across the portfolio with sparkling
beverages increasing 4 percent and still beverages increasing 21 percent
in the quarter. Notably, brand Coca-Cola and Trademark Coca-Cola both
grew 5 percent in the quarter.
-- In the quarter, the Latin America Group gained volume and value share in
both the sparkling and still categories.
North America
-- Our North America Group's unit case volume declined 4 percent in the
quarter primarily due to the shift of the July 4th holiday volume from
the third quarter into the second quarter, an aggressive competitive
pricing environment within still beverages and the continuing difficult
macroeconomic environment. Year-to-date unit case volume decreased 2
percent. Net revenues for the quarter decreased 2 percent, reflecting a
1 percent positive impact from pricing and mix offset by a 3 percent
decrease in concentrate sales. Reported operating income increased 10
percent in the quarter primarily reflecting lower cost of goods sold
attributable to lower commodity costs and the benefits of our ongoing
productivity initiatives.
-- Unit case volume for sparkling beverages declined 5 percent in the
quarter as we cycle the industry-leading bottler pricing taken in the
latter part of 2008; however, brand health scores continued to improve.
Importantly, Coca-Cola Zero delivered double-digit unit case volume
growth in the quarter, achieving 14 consecutive quarters of double-digit
growth.
-- Still beverage unit case volume was even in the quarter. Still volume in
our Foodservice and Hospitality business continued to grow, driven by
innovation and new segmented customer offerings in our tea portfolio.
-- In the quarter, North America gained significant value share in
nonalcoholic ready-to-drink beverages for the fourth consecutive
quarter. Still beverages gained volume share for the ninth consecutive
quarter and gained value share for the fourth consecutive quarter, led
by strong performance in our Foodservice and Hospitality business and
Trademark Simply. Trademark Simply continued to perform strongly with
new flavor innovations and expanded availability, contributing to share
gains in the juice and juice drinks category.
Pacific
-- Our Pacific Group delivered unit case volume growth of 6 percent in the
quarter, cycling 7 percent growth in the prior year quarter.
Year-to-date unit case volume growth increased 5 percent, cycling 7
percent growth in the prior year period. Net revenues for the quarter
decreased 1 percent, reflecting a mid single-digit positive impact from
currencies and a 3 percent increase in concentrate sales offset by
negative country and channel mix. Reported operating income decreased 10
percent in the quarter. Comparable currency neutral operating income
decreased 17 percent primarily reflecting negative country and channel
mix partially offset by higher concentrate sales.
-- Pacific delivered unit case volume growth across the portfolio with
sparkling beverages increasing 5 percent and still beverages increasing
8 percent in the quarter. Importantly, Trademark Coca-Cola grew 4
percent in the quarter.
-- In China, unit case volume grew 15 percent in the quarter driven by
double-digit growth in Trademark Sprite and Minute Maid, as well as mid
single-digit growth in Trademark Coca-Cola, contributing to volume and
value share gains across sparkling and still beverages.
-- In Japan, unit case volume growth declined 4 percent in the quarter
reflecting the weak economy and unfavorable weather. However, our
business in Japan continued to outperform the nonalcoholic
ready-to-drink industry, resulting in the sixth consecutive quarter of
share gains. Importantly, Georgia Coffee unit case volume increased 1
percent in the quarter driven by the introduction of additional
low-calorie options and our new "Welcome to Georgia" campaign.
Bottling Investments
-- Our Bottling Investments Group's unit case volume increased 4 percent in
the quarter, primarily driven by strong growth in China, India and the
Philippines, partially offset by the impact of the Pakistan bottler
divestiture in the prior year. Net revenues for the quarter decreased 4
percent, primarily reflecting the increase in unit case volume offset by
a negative currency impact and the impact of the divestiture in the
prior year. Reported operating income increased 26 percent in the
quarter while comparable currency neutral operating income increased 56
percent, primarily driven by favorable commodity costs and tight expense
management.
FINANCIAL REVIEW
Net operating revenues for the quarter decreased 4 percent, driven by a 6 percent negative currency impact and a 1 percent negative impact from a structural change offset by a 2 percent increase in concentrate sales and a 1 percent positive impact from pricing and mix. The structural change relates to the divestiture of a portion of our ownership interest in the Pakistan bottler in 2008, which resulted in its deconsolidation. Excluding the impact of this divestiture, our comparable currency neutral net revenues increased 5 percent year-to-date, in line with our long-term growth target.
Cost of goods sold decreased 3 percent in the quarter. This decrease is primarily driven by the 2 percent increase in concentrate sales offset by a 3 percent impact from currencies and a 1 percent impact from the structural change related to our bottling investments.
Selling, general and administrative expenses decreased 7 percent in the quarter primarily driven by a 6 percent currency impact. In addition, the decrease was partly attributable to our more effective management of general and administrative expenses, the structural change related to bottling investments and a net decrease in incentive compensation expense partially offset by an increase in pension costs.
Reported and comparable operating income decreased 2 percent in the quarter. Items impacting comparability reduced operating income by $48 million in 2009 and by $47 million in 2008 and were primarily related to restructuring charges and costs related to global productivity initiatives. Comparable currency neutral operating income increased 9 percent in the quarter, exceeding our long-term growth target. Currency negatively impacted comparable operating income by 11 percent in the quarter. After considering current spot rates, the anticipated benefits of our hedging coverage and the cycling of prior year exchange rates, we expect currencies to have a low to mid single-digit positive impact on operating income in the fourth quarter of 2009.
For the third quarter of 2009, our reported earnings per share were $0.81, even with the third quarter of 2008. Reported earnings per share for the third quarter of 2009 and 2008 included a net charge of $0.01 and $0.02 per share, respectively, primarily due to restructuring charges and costs related to global productivity initiatives. The 2008 net charge also included a gain on the sale of a portion of our investment in the Pakistan bottler. After considering the items impacting comparability, earnings per share in the quarter were $0.82, a decrease of 1 percent versus the third quarter of 2008. Earnings per share continue to be negatively impacted by the relative strength of the U.S. dollar versus other currencies around the world.
Cash from operations was $6.3 billion year-to-date compared with $5.7 billion in the prior year period, an increase of 11 percent. This increase was driven by an improvement in working capital versus the prior year. In the third quarter, we repurchased $241 million of our stock, and we intend to repurchase up to $1 billion of stock by year end.
Effective Tax Rate
The Company's estimated effective tax rate reflects, among other items, our best estimates for 2009 operating results and foreign currency exchange rates. If actual results are different than these estimates, the underlying effective tax rate could change.
As discussed in the second quarter earnings release, we had previously estimated that the underlying effective tax rate on operations would be approximately 23.5 percent for the full year. We now anticipate that the underlying effective tax rate on operations for the full year 2009 will be approximately 23.0 percent. We are required to record income tax expense for the first nine months of the year based on the estimated effective tax rate for the full year. To bring the effective tax rate for the first nine months of 2009 in line with the current estimated full year underlying effective tax rate, we recorded income tax expense at an underlying effective tax rate of approximately 22.0 percent in the third quarter.
Our estimated underlying effective tax rate does not reflect the impact of significant or unusual items and discrete events, which, if and when they occur, are separately recognized in the appropriate period. The reported effective tax rate for the quarter was 21.4 percent.
Items Impacting Prior Year Results
Third quarter 2008 results included a net charge of $0.02 per share primarily due to restructuring charges and costs related to global productivity initiatives partially offset by a gain on the sale of a portion of our investment in the Pakistan bottler.
Second quarter 2008 results included a net charge of $0.40 per share primarily related to charges recorded by our equity method investees, restructuring charges and asset write-downs.
First quarter 2008 results included a net charge of $0.03 per share primarily related to restructuring charges and asset write-downs.
NOTES
-- All references to growth rate percentages and share compare the results
of the period to those of the prior year comparable period.
-- All references to unit case volume percentage changes are computed based
on average daily sales for all periods presented.
-- 2009 year-to-date results are positively impacted by five additional
selling days, which will be offset by six fewer selling days in the
fourth quarter.
-- Our long-term growth targets as referenced in this release are on a
comparable currency neutral basis and exclude structural changes.
CONFERENCE CALL
We are hosting a conference call with investors and analysts to discuss our 2009 third quarter and year-to-date results today at 9:30 a.m. (EDT). We invite investors to listen to the live audiocast of the conference call at our website, http://www.thecoca-colacompany.com/investors/index.html in the "Investors" section. A replay in downloadable MP3 format will also be available within 24 hours after the audiocast on our website. Further, the "Investors" section of our website includes a reconciliation of non-GAAP financial measures that may be used periodically by management when discussing our financial results with investors and analysts to our results as reported under GAAP.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
Three Months Ended
October 2, September 26,
% Change
2009 2008
Net Operating Revenues $ 8,044 $ 8,393 (4 )
Cost of goods sold 2,934 3,020 (3 )
Gross Profit 5,110 5,373 (5 )
Selling, general and administrative 2,912 3,139 (7 )
expenses
Other operating charges 48 47 --
Operating Income 2,150 2,187 (2 )
Interest income 67 105 (36 )
Interest expense 89 111 (20 )
Equity income (loss) - net 282 272 4
Other income (loss) - net 33 17 --
Income Before Income Taxes 2,443 2,470 (1 )
Income taxes 523 555 (6 )
Consolidated Net Income 1,920 1,915 0
Less: Net income attributable to 24 25 (4 )
noncontrolling interests
Net Income Attributable to Shareowners $ 1,896 $ 1,890 0
of The Coca-Cola Company
Diluted Net Income Per Share* $ 0.81 $ 0.81 0
Average Shares Outstanding - Diluted* 2,332 2,329
* For the three months ended October 2, 2009 and September 26, 2008, "Basic
Net Income Per Share" was $0.82 for 2009 and $0.82 for 2008 based on "Average
Shares Outstanding - Basic" of 2,316 for 2009 and 2,311 for 2008. Basic net
income per share and diluted net income per share are calculated based on net
income attributable to shareowners of The Coca-Cola Company.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
Nine Months Ended
October 2, September 26,
% Change
2009 2008
Net Operating Revenues $ 23,480 $ 24,818 (5 )
Cost of goods sold 8,437 8,806 (4 )
Gross Profit 15,043 16,012 (6 )
Selling, general and administrative 8,380 9,030 (7 )
expenses
Other operating charges 212 242 --
Operating Income 6,451 6,740 (4 )
Interest income 184 239 (23 )
Interest expense 271 317 (15 )
Equity income (loss) - net 609 (434 ) --
Other income (loss) - net 13 118 --
Income Before Income Taxes 6,986 6,346 10
Income taxes 1,658 1,477 12
Consolidated Net Income 5,328 4,869 9
Less: Net income attributable to 47 57 (18 )
noncontrolling interests
Net Income Attributable to Shareowners $ 5,281 $ 4,812 10
of The Coca-Cola Company
Diluted Net Income Per Share* $ 2.27 $ 2.06 10
Average Shares Outstanding - Diluted* 2,324 2,341
* For the nine months ended October 2, 2009 and September 26, 2008, "Basic Net
Income Per Share" was $2.28 for 2009 and $2.08 for 2008 based on "Average
Shares Outstanding - Basic" of 2,314 for 2009 and 2,316 for 2008. Basic net
income per share and diluted net income per share are calculated based on net
income attributable to shareowners of The Coca-Cola Company.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(UNAUDITED)
(In millions except par value)
October 2, 2009 December 31, 2008
Assets
Current Assets
Cash and cash equivalents $ 8,846 $ 4,701
Marketable securities 279 278
Trade accounts receivable, less allowances 3,465 3,090
of $57 and $51, respectively
Inventories 2,341 2,187
Prepaid expenses and other assets 2,061 1,920
Total Current Assets 16,992 12,176
Equity Method Investments 5,985 5,316
Other Investments, Principally Bottling 496 463
Companies
Other Assets 1,910 1,733
Property, Plant and Equipment - net 9,099 8,326
Trademarks With Indefinite Lives 6,147 6,059
Goodwill 4,100 4,029
Other Intangible Assets 2,378 2,417
Total Assets $ 47,107 $ 40,519
Liabilities and Equity
Current Liabilities
Accounts payable and accrued expenses $ 6,755 $ 6,205
Loans and notes payable 6,136 6,066
Current maturities of long-term debt 50 465
Accrued income taxes 469 252
Total Current Liabilities 13,410 12,988
Long-Term Debt 5,028 2,781
Other Liabilities 3,124 3,011
Deferred Income Taxes 1,123 877
The Coca-Cola Company Shareowners' Equity
Common stock, $0.25 par value; Authorized
- 5,600 shares; Issued - 3,520 and 3,519 880 880
shares, respectively
Capital surplus 8,227 7,966
Reinvested earnings 40,944 38,513
Accumulated other comprehensive income (1,753 ) (2,674 )
(loss)
Treasury stock, at cost - 1,206 and 1,207 (24,343 ) (24,213 )
shares, respectively
Equity Attributable to Shareowners of The 23,955 20,472
Coca-Cola Company
Equity Attributable to Noncontrolling 467 390
Interests
Total Equity 24,422 20,862
Total Liabilities and Equity $ 47,107 $ 40,519
THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(UNAUDITED)
(In millions)
Nine Months Ended
October 2, 2009 September 26, 2008
Operating Activities
Consolidated net income $ 5,328 $ 4,869
Depreciation and amortization 905 943
Stock-based compensation expense 142 223
Deferred income taxes 26 (221 )
Equity income or loss, net of dividends (428 ) 638
Foreign currency adjustments 15 (39 )
Gains on sales of assets, including (33 ) (128 )
bottling interests
Other operating charges 134 141
Other items 187 57
Net change in operating assets and (6 ) (815 )
liabilities
Net cash provided by operating activities 6,270 5,668
Investing Activities
Acquisitions and investments, principally
beverage and bottling companies and (286 ) (655 )
trademarks
Purchases of other investments (20 ) (212 )
Proceeds from disposals of bottling 102 454
companies and other investments
Purchases of property, plant and (1,399 ) (1,370 )
equipment
Proceeds from disposals of property, 34 46
plant and equipment
Other investing activities 9 (57 )
Net cash used in investing activities (1,560 ) (1,794 )
Financing Activities
Issuances of debt 11,149 5,308
Payments of debt (9,408 ) (3,211 )
Issuances of stock 231 570
Purchases of stock for treasury (6 ) (1,079 )
Dividends (2,850 ) (1,764 )
Net cash used in financing activities (884 ) (176 )
Effect of Exchange Rate Changes on Cash 319 6
and Cash Equivalents
Cash and Cash Equivalents
Net increase during the period 4,145 3,704
Balance at beginning of period 4,701 4,093
Balance at end of period $ 8,846 $ 7,797
THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)
Three Months Ended
Net Operating Revenues Operating Income (Loss) Income (Loss) Before Income
Taxes
October September October September October September
2, 26, 2, 26, 2, 26,
% Fav. / % Fav. / % Fav. /
2009 2008 2009 2008 2009 2008
(Unfav.) (Unfav.) (Unfav.)
(1) (5) (2) (6) (2), (3), (6), (7),
(4) (8)
Eurasia & $ 537 $ 592 (9 ) $ 184 $ 180 2 $ 182 $ 169 8
Africa
Europe 1,380 1,529 (10 ) 774 796 (3 ) 784 811 (3 )
Latin 1,004 1,033 (3 ) 557 559 0 554 557 (1 )
America
North 2,119 2,152 (2 ) 433 392 10 435 395 10
America
Pacific 1,269 1,276 (1 ) 442 491 (10 ) 435 487 (11 )
Bottling 2,212 2,309 (4 ) 83 66 26 369 337 9
Investments
Corporate 12 34 (65 ) (323 ) (297 ) (9 ) (316 ) (286 ) (10 )
Eliminations (489 ) (532 ) -- -- -- -- -- -- --
Consolidated $ 8,044 $ 8,393 (4 ) $ 2,150 $ 2,187 (2 ) $ 2,443 $ 2,470 (1 )
Intersegment revenues for the three months ended October 2, 2009, were approximately $72 million for Eurasia and
(1) Africa, $243 million for Europe, $44 million for Latin America, $7 million for North America, $87 million for
Pacific and $36 million for Bottling Investments.
Operating income (loss) and income (loss) before income taxes for the three months ended October 2, 2009, were
(2) reduced by approximately $2 million for Europe, $2 million for North America, $1 million for Pacific, $18
million for Bottling Investments and $25 million for Corporate, primarily due to the Company's ongoing
productivity initiatives and restructuring costs.
Income (loss) before income taxes for the three months ended October 2, 2009, was reduced by approximately $5
(3) million for Bottling Investments and $1 million for Corporate, primarily attributable to the Company's
proportionate share of restructuring charges recorded by certain of our equity method investees.
Income (loss) before income taxes for the three months ended October 2, 2009, was increased by approximately $10
(4) million for Corporate due to realized gains on the sale of equity securities that were classified as
available-for-sale. In 2008, the Company recognized an other-than-temporary impairment related to these
investments.
Intersegment revenues for the three months ended September 26, 2008, were approximately $52 million for Eurasia
(5) and Africa, $280 million for Europe, $44 million for Latin America, $17 million for North America, $84 million
for Pacific and $55 million for Bottling Investments.
Operating income (loss) and income (loss) before income taxes for the three months ended September 26, 2008,
(6) were reduced by approximately $1 million for Latin America, $6 million for North America, $12 million for
Bottling Investments and $28 million for Corporate, primarily due to restructuring costs and productivity
initiatives.
Income (loss) before income taxes for the three months ended September 26, 2008, was reduced by approximately $3
(7) million for Bottling Investments, primarily attributable to the Company's proportionate share of restructuring
charges recorded by certain of our equity method investees.
Income (loss) before income taxes for the three months ended September 26, 2008, was increased by approximately
$16 million for Corporate due to a gain on the sale of 49 percent of our interest in Coca-Cola Beverages
(8) Pakistan Ltd. ("Coca-Cola Pakistan") to Coca-Cola Icecek A.S.
("Coca-Cola Icecek").
THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)
Nine Months Ended
Net Operating Revenues Operating Income (Loss) Income (Loss) Before Income Taxes
September October September October 2, September
October 2, 26, 2, 26, 26,
% Fav. / % Fav. / 2009 % Fav. /
2009 2008 2009 2008 2008
(Unfav.) (Unfav.) (2), (3), (Unfav.)
(1) (6) (2) (7) (4), (5) (7), (8),
(9)
Eurasia & $ 1,655 $ 1,820 (9 ) $ 634 $ 676 (6 ) $ 637 $ 670 (5 )
Africa
Europe 4,013 4,626 (13 ) 2,327 2,547 (9 ) 2,361 2,580 (8 )
Latin 2,762 2,894 (5 ) 1,483 1,596 (7 ) 1,481 1,601 (7 )
America
North 6,385 6,306 1 1,316 1,173 12 1,322 1,180 12
America
Pacific 3,731 3,604 4 1,492 1,483 1 1,475 1,470 0
Bottling 6,276 7,099 (12 ) 136 239 (43 ) 746 (198 ) --
Investments
Corporate 64 91 (30 ) (937 ) (974 ) 4 (1,036 ) (957 ) (8 )
Eliminations (1,406 ) (1,622 ) -- -- -- -- -- -- --
Consolidated $ 23,480 $ 24,818 (5 ) $ 6,451 $ 6,740 (4 ) $ 6,986 $ 6,346 10
Intersegment revenues for the nine months ended October 2, 2009, were approximately $186 million for Eurasia and
(1) Africa, $685 million for Europe, $113 million for Latin America, $56 million for North America, $268 million for
Pacific and $98 million for Bottling Investments.
Operating income (loss) and income (loss) before income taxes for the nine months ended October 2, 2009, were
(2) reduced by approximately $3 million Eurasia and Africa, $3 million for Europe, $15 million for North America, $1
million for Pacific, $109 million for Bottling Investments and $81 million for Corporate, primarily as a result of
restructuring costs, the Company's ongoing productivity initiatives and asset impairments.
Income (loss) before income taxes for the nine months ended October 2, 2009, was reduced by approximately $66
(3) million for Bottling Investments and $2 million for Corporate, primarily attributable to the Company's
proportionate share of asset impairment and restructuring charges recorded by certain of our equity method
investees.
(4) Income (loss) before income taxes for the nine months ended October 2, 2009, was reduced by approximately $27
million for Corporate due to an other-than-temporary impairment of a cost method investment.
Income (loss) before income taxes for the nine months ended October 2, 2009, was increased by approximately $10
(5) million for Corporate due to realized gains on the sale of equity securities that were classified as
available-for-sale. In 2008, the Company recognized an other-than-temporary impairment related to these
investments.
Intersegment revenues for the nine months ended September 26, 2008, were approximately $159 million for Eurasia and
(6) Africa, $810 million for Europe, $164 million for Latin America, $47 million for North America, $272 million for
Pacific and $170 million for Bottling Investments.
Operating income (loss) and income (loss) before income taxes for the nine months ended September 26, 2008, were
(7) reduced by approximately $1 million for Latin America, $12 million for North America, $25 million for Bottling
Investments and $204 million for Corporate, primarily attributable to restructuring costs, contract termination
fees, asset impairments and productivity initiatives.
Income (loss) before income taxes for the nine months ended September 26, 2008, was reduced by approximately $1.1
(8) billion for Bottling Investments, primarily as a result of our proportionate share of an impairment charge recorded
by Coca-Cola Enterprises Inc. ("CCE").
Income (loss) before income taxes for the nine months ended September 26, 2008, was increased by approximately $118
(9) million for Bottling Investments and Corporate, primarily due to the gain on the sale of Refrigerantes Minas Gerais
Ltda. ("Remil"), a bottler in Brazil, to Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA").
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
Three Months Ended October 2, 2009
After
Items Impacting Comparability % Change -
Considering
After % Change After
- Items and
Asset Certain Considering Considering
Reported Productivity Equity Transaction Tax Reported Excluding
Impairments/ Items Items Tax
(GAAP) Initiatives Investees Gain Matters (GAAP)
Restructuring (1) (Non-GAAP) (Non-GAAP) Rate Change
(Non-GAAP)
Net Operating $ 8,044 $ 8,044 (4 ) (2) (4 ) (3) $ 8,044
Revenues
Cost of goods 2,934 2,934 (3 ) (3 ) 2,934
sold
Gross Profit 5,110 5,110 (5 ) (5 ) 5,110
Selling,
general and 2,912 2,912 (7 ) (7 ) 2,912
administrative
expenses
Other
operating 48 ($23 ) ($25 ) - -- -- -
charges
Operating 2,150 23 25 2,198 (2 ) (2 ) (4) 2,198
Income
Interest 67 67 (36 ) (36 ) 67
income
Interest 89 89 (20 ) (20 ) 89
expense
Equity income 282 $ 6 288 4 5 288
- net
Other income 33 ($10 ) 23 -- -- 23
(loss) - net
Income Before 2,443 23 25 6 (10 ) 2,487 (1 ) (1 ) 2,487
Income Taxes
Income taxes 523 2 8 $ 9 542 (6 ) (1 ) 584
Consolidated 1,920 21 17 6 (10 ) (9 ) 1,945 0 (1 ) 1,903
Net Income
Less: Net
income
attributable 24 24 (4 ) (4 ) 24
to
noncontrolling
interests
Net Income
Attributable
to Shareowners $ 1,896 $ 21 $ 17 $ 6 ($10 ) ($9 ) $ 1,921 0 (1 ) $ 1,879
of The
Coca-Cola
Company
Diluted Net
Income Per $ 0.81 $ 0.01 $ 0.01 $ 0.00 $ 0.00 $ 0.00 $ 0.82 (5) 0 (1 ) $ 0.81
Share
Average Shares
Outstanding - 2,332 2,332 2,332 2,332 2,332 2,332 2,332 2,332
Diluted
Gross Margin 63.5 % 63.5 % 63.5 %
Operating 26.7 % 27.3 % 27.3 %
Margin
Effective Tax 21.4 % 21.8 % (6) 23.5 %
Rate
Three Months Ended September 26, 2008
Items Impacting Comparability
After
Asset Certain Considering
Reported Productivity Equity Transaction Tax
Impairments/ Items
(GAAP) Initiatives Investees Gains Matters
Restructuring (1) (Non-GAAP)
Net Operating $ 8,393 $ 8,393
Revenues
Cost of goods 3,020 3,020
sold
Gross Profit 5,373 5,373
Selling,
general and 3,139 3,139
administrative
expenses
Other
operating 47 ($35 ) ($12 ) -
charges
Operating 2,187 35 12 2,234
Income
Interest 105 105
income
Interest 111 111
expense
Equity income 272 $ 3 275
(loss) - net
Other income 17 ($16 ) 1
(loss) - net
Income Before 2,470 35 12 3 (16 ) 2,504
Income Taxes
Income taxes 555 7 6 (21 ) 3 ($5 ) 545
Consolidated 1,915 28 6 24 (19 ) 5 1,959
Net Income
Less: Net
income
attributable 25 25
to
noncontrolling
interests
Net Income
Attributable
to Shareowners $ 1,890 $ 28 $ 6 $ 24 ($19 ) $ 5 $ 1,934
of The
Coca-Cola
Company
Diluted Net
Income Per $ 0.81 $ 0.01 $ 0.00 $ 0.01 ($0.01 ) $ 0.00 $ 0.83 (5)
Share
Average Shares
Outstanding - 2,329 2,329 2,329 2,329 2,329 2,329 2,329
Diluted
Gross Margin 64.0 % 64.0 %
Operating 26.1 % 26.6 %
Margin
Effective Tax 22.5 % 21.8 %
Rate
Note:Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes negatively impacting net
income are reflected as increases to reported net income. Gains and accounting changes positively impacting net income are reflected as deductions to reported
net income.
(1)Primarily related to changes in reserves related to certain tax matters.
(2) Net operating revenues include a negative impact of $49, or approximately 1%, due to structural changes.
(3) Net operating revenues after considering items impacting comparability for the three months ended October 2, 2009 include a negative currency impact of
approximately 6%. Currency neutral net operating revenue growth after considering items impacting comparability is 2%. Currency neutral net operating revenues
include a negative impact due to structural changes of approximately 1%. Currency neutral net operating revenue growth after considering items impacting
comparability and structural changes is 3%.
(4) Operating income after considering items impacting comparability for the three months ended October 2, 2009 includes a negative currency impact of
approximately 11%. Currency neutral operating income growth after considering items impacting comparability is 9%.
(5) Per share amounts do not add due to rounding.
(6) Effective tax rate after considering impact of net income attributable to noncontrolling interests:
2009
Income before income taxes of $2,487 less
net income attributable to noncontrolling $ 2,463
interests of $24
Income taxes $ 542
Effective tax rate after considering
impact of net income attributable to 22.0 %
noncontrolling interests
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain
non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current
results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability.
Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See
the tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended October 2, 2009 and
September 26, 2008. 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.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
Nine Months Ended October 2, 2009
After
Items Impacting Comparability % Change -
Considering
After % Change After
- Items and
Asset Certain Considering Considering
Reported Productivity Equity Transaction Tax Reported Excluding
Impairments/ Items Items Tax
(GAAP) Initiatives Investees Gain Matters (GAAP)
Restructuring (1) (Non-GAAP) (Non-GAAP) Rate Change
(Non-GAAP)
Net Operating $ 23,480 $ 23,480 (5 ) (2) (5 ) (3) $ 23,480
Revenues
Cost of goods 8,437 8,437 (4 ) (4 ) 8,437
sold
Gross Profit 15,043 15,043 (6 ) (6 ) 15,043
Selling,
general and 8,380 8,380 (7 ) (7 ) 8,380
administrative
expenses
Other
operating 212 ($154 ) ($58 ) - -- -- -
charges
Operating 6,451 154 58 6,663 (4 ) (5 ) (4) 6,663
Income
Interest 184 184 (23 ) (23 ) 184
income
Interest 271 271 (15 ) (15 ) 271
expense
Equity income 609 $ 68 677 -- (3 ) 677
- net
Other income 13 27 ($10 ) 30 -- -- 30
(loss) - net
Income Before 6,986 181 58 68 (10 ) 7,283 10 (4 ) 7,283
Income Taxes
Income taxes 1,658 9 20 15 ($38 ) 1,664 12 0 1,712
Consolidated 5,328 172 38 53 (10 ) 38 5,619 9 (5 ) 5,571
Net Income
Less: Net
income
attributable 47 47 (18 ) (18 ) 47
to
noncontrolling
interests
Net Income
Attributable
to Shareowners $ 5,281 $ 172 $ 38 $ 53 ($10 ) $ 38 $ 5,572 10 (5 ) $ 5,524
of The
Coca-Cola
Company
Diluted Net
Income Per $ 2.27 $ 0.07 $ 0.02 $ 0.02 $ 0.00 $ 0.02 $ 2.40 10 (4 ) $ 2.38
Share
Average Shares
Outstanding - 2,324 2,324 2,324 2,324 2,324 2,324 2,324 2,324
Diluted
Gross Margin 64.1 % 64.1 % 64.1 %
Operating 27.5 % 28.4 % 28.4 %
Margin
Effective Tax 23.7 % 22.8 % (5) 23.5 %
Rate
Nine Months Ended September 26, 2008
Items Impacting Comparability
After
Asset Certain Considering
Reported Productivity Equity Transaction Tax
Impairments/ Items
(GAAP) Initiatives Investees Gains Matters
Restructuring (1) (Non-GAAP)
Net Operating $ 24,818 $ 24,818
Revenues
Cost of goods 8,806 8,806
sold
Gross Profit 16,012 16,012
Selling,
general and 9,030 9,030
administrative
expenses
Other
operating 242 ($218 ) ($24 ) -
charges
Operating 6,740 218 24 6,982
Income
Interest 239 239
income
Interest 317 317
expense
Equity income (434 ) $ 1,130 696
(loss) - net
Other income 118 ($118 ) -
(loss) - net
Income Before 6,346 218 24 1,130 (118 ) 7,600
Income Taxes
Income taxes 1,477 43 9 195 (29 ) ($36 ) 1,659
Consolidated 4,869 175 15 935 (89 ) 36 5,941
Net Income
Less: Net
income
attributable 57 57
to
noncontrolling
interests
Net Income
Attributable
to Shareowners $ 4,812 $ 175 $ 15 $ 935 ($89 ) $ 36 $ 5,884
of The
Coca-Cola
Company
Diluted Net
Income Per $ 2.06 $ 0.07 $ 0.01 $ 0.40 ($0.04 ) $ 0.02 $ 2.51 (6)
Share
Average Shares
Outstanding - 2,341 2,341 2,341 2,341 2,341 2,341 2,341
Diluted
Gross Margin 64.5 % 64.5 %
Operating 27.2 % 28.1 %
Margin
Effective Tax 23.3 % 21.8 %
Rate
Note:Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes negatively impacting net income
are reflected as increases to reported net income. Gains and accounting changes positively impacting net income are reflected as deductions to reported net
income.
(1)Primarily related to changes in reserves related to certain tax matters.
(2) Net operating revenues include a negative impact of $396, or approximately 2%, due to structural changes.
(3) Net operating revenues after considering items impacting comparability for the nine months ended October 2, 2009 include a negative currency impact of
approximately 8%. Currency neutral net operating revenue growth after considering items impacting comparability is 3%. Currency neutral net operating revenues
include a negative impact due to structural changes of approximately 2%. Currency neutral net operating revenue growth after considering items impacting
comparability and structural changes is 5%.
(4) Operating income after considering items impacting comparability for the nine months ended October 2, 2009 includes a negative currency impact of
approximately 14%. Currency neutral operating income growth after considering items impacting comparability is 9%.
(5) Effective tax rate after considering impact of net income attributable to noncontrolling interests:
2009
Income before income taxes of $7,283 less
net income attributable to noncontrolling $ 7,236
interests of $47
Income taxes $ 1,664
Effective tax rate after considering impact
of net income attributable to 23.0 %
noncontrolling interests
(6) Per share amounts do not add due to rounding.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain
non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current
results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability.
Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the
tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the nine months ended October 2, 2009 and September
26, 2008. 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.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
Operating Income (Loss) by Segment
(UNAUDITED)
(In millions)
Three Months Ended October 2, 2009 Three Months Ended September 26, 2008
% Favorable
Items Impacting Comparability Items Impacting
Comparability (Unfavorable)
% Favorable -
After After
(Unfavorable) After
Considering Considering -
Asset Asset Considering
Reported Productivity Items Reported Productivity Items Reported
Impairments/ Impairments/ Items
(GAAP) Initiatives (Non-GAA(GAAP) Initiatives (Non-GAAP) (GAAP)
Restructuring Restructuring (Non-GAAP)
(1)
Eurasia & $ 184 ($1 ) $ 1 $ 184 $ 180 $ 180 2 2
Africa
Europe 774 1 1 776 796 796 (3 ) (3 )
Latin 557 557 559 $ 1 560 0 (1 )
America
North 433 2 435 392 6 398 10 9
America
Pacific 442 1 443 491 491 (10 ) (10 )
Bottling 83 18 101 66 12 78 26 29
Investments
Corporate (323 ) 3 22 (298 ) (297 ) 16 $ 12 (269 ) (9 ) (11 )
Consolidated $ 2,150 $ 23 $ 25 $ 2,198 $ 2,187 $ 35 $ 12 $ 2,234 (2 ) (2 )
(1) Currency neutral operating income growth after considering items impacting comparability for each operating segment is calculated as follows:
% Favorable
% Favorable
% Currency (Unfavorable)
(Unfavorable) -
- Impact After
Currency
After Considering
Neutral After
Considering Items
Impacting Considering
Items
Comparability Items
(Non-GAAP)
(Non-GAAP)
Eurasia & 2 (11 ) 13
Africa
Europe (3 ) (10 ) 7
Latin (1 ) (19 ) 18
America
North 9 0 9
America
Pacific (10 ) 7 (17 )
Bottling 29 (27 ) 56
Investments
Corporate (11 ) (21 ) 10
Consolidated (2 ) (11 ) 9
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP
financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results
in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business
because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP
financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the tables above for supplemental financial
data and corresponding reconciliations to GAAP financial measures for the three months ended October 2, 2009 and September 26, 2008. 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.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
Operating Income (Loss) by Segment
(UNAUDITED)
(In millions)
Nine Months Ended October 2, 2009 Nine Months Ended September 26, 2008
% Favorable
Items Impacting Comparability Items Impacting
Comparability (Unfavorable)
% Favorable -
After After
(Unfavorable) After
Considering Considering -
Asset Asset Considering
Reported Productivity Items Reported Productivity Items Reported
Impairments/ Impairments/ Items
(GAAP) Initiatives (Non-GAA(GAAP) Initiatives (Non-GAAP) (GAAP)
Restructuring Restructuring (Non-GAAP)
(1)
Eurasia & $ 634 $ 2 $ 1 $ 637 $ 676 $ 676 (6 ) (6 )
Africa
Europe 2,327 1 2 2,330 2,547 2,547 (9 ) (9 )
Latin 1,483 1,483 1,596 $ 1 1,597 (7 ) (7 )
America
North 1,316 15 1,331 1,173 12 1,185 12 12
America
Pacific 1,492 1 1,493 1,483 1,483 1 1
Bottling 136 109 245 239 25 264 (43 ) (7 )
Investments
Corporate (937 ) 27 54 (856 ) (974 ) 180 $ 24 (770 ) 4 (11 )
Consolidated $ 6,451 $ 154 $ 58 $ 6,663 $ 6,740 $ 218 $ 24 $ 6,982 (4 ) (5 )
(1) Currency neutral operating income growth after considering items impacting comparability for each operating segment is calculated as follows:
% Favorable
% Favorable
% Currency (Unfavorable)
(Unfavorable) -
- Impact After
Currency
After Considering
Neutral After
Considering Items
Impacting Considering
Items
Comparability Items
(Non-GAAP)
(Non-GAAP)
Eurasia & (6 ) (19 ) 13
Africa
Europe (9 ) (13 ) 4
Latin (7 ) (22 ) 15
America
North 12 (1 ) 13
America
Pacific 1 4 (3 )
Bottling (7 ) (31 ) 24
Investments
Corporate (11 ) (15 ) 4
Consolidated (5 ) (14 ) 9
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP
financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in
prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business
because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP
financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the tables above for supplemental financial
data and corresponding reconciliations to GAAP financial measures for the nine months ended October 2, 2009 and September 26, 2008. 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.
The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with nearly 500 sparkling and still brands. Along with Coca-Cola, recognized as the world's most valuable brand, the Company's portfolio includes 12 other billion dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid and Georgia Coffee. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate of nearly 1.6 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where we operate. For more information about our Company, please visit our website at www.thecoca-colacompany.com.
Forward-Looking Statements
This press release may contain statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company's historical experience and our present expectations or projections. These risks include, but are not limited to, obesity and other health concerns; scarcity and quality of water; changes in the nonalcoholic beverages business environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes and needs, changes in lifestyles and competitive product and pricing pressures; impact of the global credit crisis on our liquidity and financial performance; our ability to expand our operations in developing and emerging markets; foreign currency exchange rate fluctuations; increases in interest rates; our ability to maintain good relationships with our bottling partners; the financial condition of our bottling partners; our ability and the ability of our bottling partners to maintain good labor relations, including the ability to renew collective bargaining agreements on satisfactory terms and avoid strikes, work stoppages or labor unrest; increase in the cost, disruption of supply or shortage of energy; increase in cost, disruption of supply or shortage of ingredients or packaging materials; changes in laws and regulations relating to beverage containers and packaging, including container deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; unfavorable general economic conditions in the United States or other major markets; unfavorable economic and political conditions in international markets, including civil unrest and product boycotts; changes in commercial or market practices and business model within the European Union; litigation uncertainties; adverse weather conditions; our ability to maintain brand image and corporate reputation as well as other product issues such as product recalls; changes in legal and regulatory environments; changes in accounting standards and taxation requirements; our ability to achieve overall long-term goals; our ability to protect our information systems; additional impairment charges; our ability to successfully manage Company-owned bottling operations; the impact of climate change on our business; global or regional catastrophic events; and other risks discussed in our Company's filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.
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Source: The Coca-Cola Company
Released October 20, 2009