Fourth quarter reported EPS was $0.28 and
comparable EPS was $0.38
Announced accelerated refranchising plans in
North America and non-binding letter of intent to refranchise
Company-owned bottling operations in China
- Full-year reported net revenue
declined 4% while organic revenue grew 4%. Reported net revenue and
organic revenue declined 8% and 1%, respectively, in the quarter,
primarily due to the impact of six fewer days in our reporting
calendar.
- Global volume grew 3% in the quarter
and 2% for the full year.
- Global price/mix grew 2% in the
quarter and the full year, reflecting strong execution against our
strategic initiatives.
- Gained global value share in
nonalcoholic ready-to-drink beverages in both the quarter and full
year.
- Remain committed to the previously
announced $3 billion productivity initiative, even with the impact
of accelerated refranchising plans.
- Expect full-year 2016 comparable
currency neutral EPS growth of 4% to 6% including the impact of 3
to 4 points of structural headwind, primarily due to refranchising,
on comparable currency neutral income before taxes.
The Coca-Cola Company today reported fourth quarter and
full-year 2015 operating results. Muhtar Kent, Chairman and Chief
Executive Officer of The Coca-Cola Company said, "In late 2014, we
laid out a clear five-point plan to reinvigorate growth and
increase profitability. In 2015, a transition year, we delivered on
this plan despite an increasingly challenging global macroeconomic
environment. Our fourth quarter performance was a testament to the
action we took as the Company continued to deliver solid pricing
and unit case volume growth, culminating in 4% organic revenue
growth for the full year. Importantly, this top-line growth was led
by our flagship market of North America, which delivered its
strongest annual performance in three years.
"Today, building on our top-line momentum and the success of
refranchising efforts to date in North America, we have announced
that we are accelerating the pace and scale of our system
transformation with plans to refranchise 100% of Company-owned
North American bottling territories by the end of 2017, including
all of the cold-fill production facilities. We are also announcing
that we have entered into a non-binding letter of intent to
refranchise our bottling operations in China to our existing
partners China Foods Limited, part of COFCO Limited, and Swire
Beverage Holdings Limited, building on other recent global
refranchising initiatives in Europe and Africa.
"This acceleration of our global refranchising marks a step
change in our efforts to refocus The Coca-Cola Company on its core
business of building strong, valuable brands and leading a system
of strong bottling partners. When this transformation is complete,
we will look very different than we do today. Expanding Coca-Cola
bottlers in various regions will grow in terms of revenue,
employment and reach as we transition Company-owned operations to
the franchise system. The Coca-Cola Company will return to its
focus as a higher margin, higher return and less capital intensive
operation. With the accelerated refranchising plans announced
today, we will move from a system where about 18% of our volume was
produced by Company-owned bottlers in 2015 to about 3%.
"Looking forward to 2016, we remain committed to achieving
underlying performance in line with our long-term growth model and
delivering long-term, sustainable value to our system and
shareowners."
2015 OPERATING REVIEW
TOTAL COMPANY
Percent Change Fourth Quarter
Full Year Unit Case Volume 3 2
Sparkling Beverages 2 1 Still Beverages 6
5 Concentrate Sales/Reported Volume (3) 1 Price/Mix 2 2
Currency (7) (7) Acquisitions & Divestitures, Net
0 0 Reported Net Revenues (8) (4) Organic Revenues *
(1) 4 Reported Income Before Taxes 43 3
Comparable CN Income Before Taxes (Structurally Adjusted) *
(2) 6
* Organic revenue and comparable currency
neutral (CN) income before taxes (structurally adjusted) are
non-GAAP financial measures. Refer to the Notes and
Reconciliation of GAAP and Non-GAAP Financial Measures
schedule.
- The organic revenue decline in the
quarter was primarily driven by the impact of six fewer days. After
adjusting for the six fewer days in the quarter, concentrate sales
were mostly in line with unit case sales. Concentrate sales growth
and unit case sales growth were mostly in line for the full year as
well. We delivered positive price/mix of 2% in the quarter and the
full year due to effective global execution of our price and pack
strategies. In the quarter, we gained global value and volume share
in nonalcoholic ready-to-drink (NARTD) beverages.
- Global sparkling beverage volume growth
in the quarter was driven by 1% growth in brand Coca-Cola, 3%
growth in Sprite and 7% growth in Coca-Cola Zero, partially offset
by a 5% decline in Diet Coke/Coke Light. We gained global value and
volume share in sparkling beverages in the quarter. Full-year
sparkling beverage volume growth was driven by 1% growth in brand
Coca-Cola, 3% growth in Sprite and 6% growth in Coca-Cola Zero,
partially offset by a 6% decline in Diet Coke/Coke Light.
- Global still beverage volume growth in
the quarter was driven by 8% growth in packaged water, 6% growth in
ready-to-drink tea, 5% growth in juice and juice drinks and 2%
growth in sports drinks. We gained global value and volume share in
still beverages in the quarter. Full-year growth was led by growth
of 8% in packaged water, 4% in ready-to-drink tea, 3% in
ready-to-drink coffee and 2% in sports drinks.
- Comparable currency neutral income
before taxes (structurally adjusted) lagged organic revenue growth
in the quarter primarily due to lower equity income and a decrease
in net interest income. Full-year comparable currency neutral
income before taxes (structurally adjusted) outpaced organic
revenue growth due to gross margin expansion and the impact of our
ongoing productivity initiatives, partially offset by increased
marketing investments, a decrease in net interest income and lower
equity income. Our productivity initiatives remain on track and
they provided financial flexibility to help us achieve our stated
goals in 2015 and reinvest in our business.
- The reported effective tax rates for
the quarter and full year were 19.6% and 23.3%, respectively. The
underlying effective tax rate was 22.5% for the quarter and full
year. The variance between the reported rate and the underlying
rate was due to the tax effect of various items impacting
comparability, separately disclosed in the Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- Reported EPS was $0.28 and comparable
EPS was $0.38 in the quarter. Items impacting comparability
decreased reported EPS by a net $0.10 and were primarily related to
noncash charges related to refranchising certain territories in
North America and costs associated with our previously announced
productivity program.
- Fluctuations in foreign currency
exchange rates resulted in a 13 point headwind on comparable
operating income and a 10 point headwind on both comparable income
before taxes and EPS in the quarter. Full-year fluctuations in
foreign currency exchange rates resulted in an 11 point headwind on
comparable operating income and an 8 point headwind on both
comparable income before taxes and EPS.
- Full-year cash from operations was
$10.5 billion, down 1%, primarily due to the unfavorable impact
from foreign currency exchange rates and the impact of refranchised
territories in North America, partially offset by the efficient
management of working capital.
- Full-year net share repurchases totaled
$2.3 billion, in line with our previously communicated
guidance.
REFRANCHISING UPDATE
- As announced earlier today, based on
the progress we have achieved to date, we are accelerating our
refranchising plans in North America. We are now committed to
refranchising 100% of our Company-owned bottling territories in
North America, by the end of 2017, including all of our cold-fill
production facilities.
- We are also announcing that in China,
we have entered into a non-binding letter of intent to refranchise
our Company-owned bottling operations to our existing partners
China Foods Limited, part of COFCO Limited, and Swire Beverage
Holdings Limited.
- The Company remains committed to the
previously announced $3 billion productivity initiative by
continuing to identify additional opportunities to offset the
impact of the accelerated refranchising plans.
EURASIA AND AFRICA
Percent Change Fourth Quarter
Full Year Unit Case Volume 2 3
Sparkling Beverages 0 2 Still Beverages 8
6 Concentrate Sales (5) 2 Price/Mix 12 3 Currency (16) (14)
Acquisitions & Divestitures, Net (2)
(1) Reported Net Revenues (11) (10) Organic Revenues *
7 5 Reported Income Before Taxes (6)
(11) Comparable CN Income Before Taxes * 9
3
* Organic revenue and comparable currency
neutral (CN) income before taxes are non-GAAP financial measures.
Refer to the Notes and Reconciliation of GAAP and Non-GAAP
Financial Measures schedule.
- Organic revenue in the quarter grew due
to strong price/mix, partially offset by the impact of six fewer
days. Acquisitions and divestitures reflect the unfavorable impact
from the brand transfer agreement associated with the closing of
the transaction with Monster Beverage Corporation. After adjusting
for the six fewer days in the quarter, concentrate sales growth was
generally in line with unit case sales growth. Concentrate sales
and unit case sales were also generally in line for the full
year.
- Comparable currency neutral income
before taxes outpaced organic revenue growth in the quarter due to
positive operating leverage driven by timing of expenses.
- Sparkling beverage volume was flat in
the quarter as growth from Trademark Coca-Cola and Sprite was
offset by a decline in Fanta. Still beverage volume growth in the
quarter was driven by double-digit growth in sports drinks,
packaged water and ready-to-drink tea along with 4% growth in juice
and juice drinks. We gained value share in total NARTD beverages,
sparkling beverages and still beverages in the quarter. Unit case
volume growth in the quarter included mid single-digit growth in
both our Central, East & West Africa and Turkey, Caucasus &
Central Asia business units along with double-digit growth in our
Southern Africa business unit, partially offset by a mid
single-digit decline in our Middle East & North Africa business
unit.
EUROPE
Percent Change Fourth Quarter
Full Year Unit Case Volume 3 2
Sparkling Beverages 3 1 Still Beverages 2
7 Concentrate Sales (2) 2 Price/Mix 1 1 Currency (5) (9)
Acquisitions & Divestitures, Net (1)
(1) Reported Net Revenues (7) (7) Organic Revenues *
(2) 2 Reported Income Before Taxes 26 1
Comparable CN Income Before Taxes * 1 0
* Organic revenue and comparable currency
neutral (CN) income before taxes are non-GAAP financial
measures. Refer to the Notes and Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- The organic revenue decline in the
quarter was primarily due to six fewer days, partially offset by
positive price/mix of 1 point. Acquisitions and divestitures
reflect the unfavorable impact from the brand transfer agreement
associated with the closing of the transaction with Monster
Beverage Corporation. After adjusting for the six fewer days in the
quarter, concentrate sales growth was ahead of unit case sales
growth due to timing of shipments. Concentrate sales and unit case
sales were in line for the full year.
- Comparable currency neutral income
before taxes outpaced organic revenue growth in the quarter
primarily due to the impact of our ongoing productivity
initiatives.
- Sparkling beverage volume growth in the
quarter was driven by 3% growth in Trademark Coca-Cola and 6%
growth in Fanta, partially offset by a 1% decline in Sprite. Still
beverage volume growth in the quarter was driven by the continued
expansion of our still portfolio resulting in 5% growth in both
packaged water and ready-to-drink tea, 1% growth in sports drinks
and double-digit growth in the innocent brand. We gained value
share in still beverages, juice and juice drinks and ready-to-drink
tea in the quarter.
LATIN AMERICA
Percent Change Fourth Quarter
Full Year Unit Case Volume 2 1
Sparkling Beverages 1 0 Still Beverages 5
4 Concentrate Sales (3) 1 Price/Mix 10 9 Currency (25) (23)
Acquisitions & Divestitures, Net 0
0 Reported Net Revenues (18) (13) Organic Revenues *
7 11 Reported Income Before Taxes 42 (7) Comparable
CN Income Before Taxes * 12 12
* Organic revenue and comparable currency
neutral (CN) income before taxes are non-GAAP financial
measures. Refer to the Notes and Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- Organic revenue growth in the quarter
was driven by strong positive price/mix, partially offset by the
impact of six fewer days. After adjusting for the six fewer days in
the quarter, concentrate sales growth was ahead of unit case sales
growth due to timing of shipments. Concentrate sales and unit case
sales were in line for the full year.
- Comparable currency neutral income
before taxes outpaced organic revenue growth in the quarter due to
positive operating leverage driven by the impact of our ongoing
productivity initiatives and timing of expenses.
- Sparkling beverage volume growth in the
quarter was driven by 4% growth in Sprite and 1% growth in both
brand Coca-Cola and Coca-Cola Zero, partially offset by a 4%
decline in Fanta. Still beverage volume growth in the quarter was
driven by double-digit growth in both juice and juice drinks and
sports drinks, as well as 4% growth in packaged water, partially
offset by a decline of 4% in ready-to-drink tea. Unit case volume
growth was driven by 6% growth in both Mexico and our Latin Center
business unit, partially offset by a 5% decline in Brazil. We
gained value share in still beverages (excluding packaged water) in
the quarter.
NORTH AMERICA
Percent Change Fourth Quarter
Full Year Unit Case Volume 3 1
Sparkling Beverages 2 0 Still Beverages 6
5 Concentrate Sales (3) 1 Price/Mix 1 3 Currency (1) (1)
Acquisitions & Divestitures, Net (1)
(1) Reported Net Revenues (4) 2 Organic Revenues *
(2) 4 Reported Income Before Taxes 491 (10)
Comparable CN Income Before Taxes * (19)
3
* Organic revenue and comparable
currency neutral (CN) income before taxes are non-GAAP financial
measures. Refer to the Notes and Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- Organic revenue declined in the quarter
primarily due to the impact of six fewer days, partially offset by
favorable price/mix. Acquisitions and divestitures primarily
reflect the unfavorable impact of refranchised territories,
partially offset by the benefit of our expanded distribution of
Monster beverage products in North America. After adjusting for the
six fewer days in the quarter, concentrate sales growth was in line
with unit case sales growth. Concentrate sales and unit case sales
were also in line for the full year.
- Comparable currency neutral income
before taxes trailed organic revenue growth in the quarter
primarily due to the impact of a 6 point structural headwind, which
includes the impact from refranchised territories as well as the
net unfavorable impact from the brand transfer agreement associated
with the closing of the transaction with Monster Beverage
Corporation and the expanded distribution of Monster beverage
products.
- Sparkling beverage volume growth in the
quarter was driven by growth in Coca-Cola Zero, Sprite and Fanta,
partially offset by a decline in Diet Coke. Still beverage volume
growth in the quarter was driven by juice and juice drinks,
ready-to-drink tea and packaged water. We gained value share in
total NARTD beverages for the 23rd consecutive quarter driven by
the continued increase in the quantity and quality of our marketing
investments along with our disciplined approach to pricing and
packaging strategies.
ASIA PACIFIC
Percent Change Fourth Quarter
Full Year Unit Case Volume 5 4
Sparkling Beverages 5 4 Still Beverages 6
4 Concentrate Sales 0 2 Price/Mix (9) (3) Currency (6) (8)
Acquisitions & Divestitures, Net 0
0 Reported Net Revenues (15) (9) Organic Revenues *
(9) 0 Reported Income Before Taxes (22) (10)
Comparable CN Income Before Taxes * (21)
(4)
* Organic revenue and comparable
currency neutral (CN) income before taxes are non-GAAP financial
measures. Refer to the Notes and Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- Organic revenue declined in the quarter
driven by unfavorable price/mix and the impact of six fewer days.
The unfavorable price/mix in the quarter was primarily driven by
unfavorable geographic and product mix. After adjusting for the six
fewer days in the quarter, concentrate sales growth was generally
in line with unit case sales growth. Full-year concentrate sales
growth lagged unit case sales growth primarily due to timing of
shipments in the prior year.
- Comparable currency neutral income
before taxes trailed organic revenue growth in the quarter
primarily due to an increase in marketing investments and the
timing of operating expenses.
- Sparkling beverage volume growth in the
quarter was driven by 6% growth in both Trademark Coca-Cola and
Fanta along with 3% growth in Sprite. Still beverage volume growth
in the quarter was driven by double-digit growth in both packaged
water and ready-to-drink tea and 2% growth in ready-to-drink
coffee. Unit case volume growth in the quarter reflected 1% growth
in China, 3% growth in Japan and double-digit growth in India. We
gained value and volume share in total NARTD beverages, still
beverages (excluding packaged water), as well as the juice and
juice drinks and ready-to-drink tea categories in the quarter.
BOTTLING INVESTMENTS
Percent Change Fourth Quarter
Full Year Unit Case Volume 10
8 Reported Volume 0 6 Price/Mix 0 (3) Currency
(11) (10) Acquisitions & Divestitures, Net 4
3 Reported Net Revenues (7) (4) Organic Revenues *
0 3 Reported Income Before Taxes (69)
(37) Comparable CN Income Before Taxes * (3)
10
* Organic revenue and comparable
currency neutral (CN) income before taxes are non-GAAP financial
measures. Refer to the Notes and Reconciliation of GAAP
and Non-GAAP Financial Measures schedule.
- Organic revenue in the quarter was
flat, in line with reported volume. Full-year organic revenue
growth was driven by reported volume growth, partially offset by
unfavorable price/mix primarily attributable to geographic, channel
and product mix.
- Comparable currency neutral income
before taxes lagged organic revenue growth in the quarter primarily
due to lower equity income.
2016 OUTLOOK
- The Company expects organic revenue to
be up 4% to 5% in 2016, in line with our long-term target. The net
impact of acquisitions and divestitures is expected to be a 4 to 5
point headwind and based on the current spot rates, currency is
expected to be a 4 point headwind, including the impact of hedged
positions.
- The Company expects comparable currency
neutral income before taxes (structurally adjusted) to grow 6% to
8% in 2016, in line with our long-term target, as strong operating
profit growth is expected to be partially offset by increased
interest expense. The net impact of structural items is expected to
be a 3 to 4 point headwind and based on the current spot rates,
currency is expected to be a 9 point headwind, including the impact
of hedged positions.
- Given the above, the Company expects
full-year comparable currency neutral EPS growth to be 4% to 6%
including the impact of 3 to 4 points of structural headwind,
primarily due to refranchising, on comparable currency neutral
income before taxes. Based on the current spot rates, currency is
expected to be a 9 point headwind, including the impact of hedged
positions.
- In addition to the above, the Company
expects the following:
- The underlying effective annual tax
rate in 2016 is expected to be 22.5%.
- We are targeting full-year 2016 net
share repurchases of $2.0 to $2.5 billion.
- For the first quarter of 2016, we
estimate that based on the current spot rates, currency will be a 5
point headwind on net revenues and a 12 point headwind on income
before taxes, including the impact of hedged positions.
ITEMS IMPACTING
COMPARABILITY
- For details on items impacting
comparability in the quarter and for the full year, refer to the
Reconciliation of GAAP and Non-GAAP Financial Measures
schedule.
NOTES
- All references to growth rate
percentages and share compare the results of the period to those of
the prior year comparable period.
- The Company reports its financial
results in accordance with accounting principles generally accepted
in the United States (GAAP). However, management believes that
certain non-GAAP financial measures provide users with additional
meaningful financial information that should be considered when
assessing the Company’s ongoing performance. Management also uses
these non-GAAP financial measures in making financial, operating
and planning decisions and in evaluating the Company's performance.
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 Company’s non-GAAP financial
information does not represent a comprehensive basis of
accounting.
- "Comparable currency neutral income
before taxes" is a non-GAAP financial measure that excludes or
otherwise adjusts for items impacting comparability and the impact
of changes in foreign currency exchange rates. For details on these
adjustments, refer to the Reconciliation of GAAP and Non-GAAP
Financial Measures schedule.
- "Comparable currency neutral income
before taxes (structurally adjusted)" is a non-GAAP financial
measure that excludes or otherwise adjusts for items impacting
comparability, the impact of changes in foreign currency exchange
rates and the impact of structural items. For details on these
adjustments, refer to the Reconciliation of GAAP and Non-GAAP
Financial Measures schedule.
- "Concentrate sales" represents the
amount of concentrates, syrups, beverage bases and powders sold by,
or used in finished beverages sold by, the Company to its bottling
partners or other customers.
- "Concentrate sales/reported volume"
represents the percent change in net revenues attributable to the
increase (decrease) in concentrate sales volume for our geographic
operating segments (expressed in equivalent unit cases) after
considering the impact of structural changes. For our Bottling
Investments operating segment, this represents the percent change
in net revenues attributable to the increase (decrease) in unit
case volume after considering the impact of structural changes. Our
Bottling Investments operating segment reflects unit case volume
growth for consolidated bottlers only, which is computed on a
reported basis.
- "Organic revenue" is a non-GAAP
financial measure that excludes or otherwise adjusts for the impact
of changes in foreign currency exchange rates and acquisitions and
divestitures, as applicable. For details on these adjustments,
refer to the Reconciliation of GAAP and Non-GAAP Financial Measures
schedule.
- "Sparkling beverages" means NARTD
beverages with carbonation, including carbonated energy drinks and
waters.
- "Still beverages" means nonalcoholic
beverages without carbonation, including non-carbonated waters,
flavored waters and enhanced waters, juices and juice drinks, teas,
coffees, sports drinks, dairy and noncarbonated energy drinks.
- All references to volume and volume
percentage changes indicate unit case volume, unless otherwise
noted. All volume percentage changes are computed based on average
daily sales, unless otherwise noted. "Unit case" means a unit of
measurement equal to 24 eight ounce servings of finished beverage.
"Unit case volume" means the number of unit cases (or unit case
equivalents) of Company beverages directly or indirectly sold by
the Company and its bottling partners to customers.
- First quarter 2015 financial results
were impacted by six additional days, while fourth quarter
financial results were impacted by six fewer days. Unit case volume
results for the quarters are not impacted by the variance in days
due to the average daily sales computation referenced above.
CONFERENCE CALL
We are hosting a conference call with investors and analysts to
discuss fourth quarter and full-year 2015 results today, Feb. 9,
2016 at 9 a.m. EST. We invite investors to listen to a live
audiocast of the conference call on the Company’s website,
http://www.coca-colacompany.com in the "Investors" section. A
replay in downloadable MP3 format and a transcript of the call will
also be available within 24 hours after the audiocast on the
Company’s website. Further, the "Investors" section of the website
includes a reconciliation of non-GAAP financial measures, which may
be used periodically by management when discussing financial
results with investors and analysts, to the Company’s 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
December 31, 2015
December 31,2014 % Change1
Net Operating Revenues $
10,000 $ 10,872 (8 ) Cost of goods sold
4,054 4,357 (7 )
Gross Profit 5,946 6,515 (9 ) Selling, general and
administrative expenses
3,937 4,338 (9 ) Other operating
charges
491 726
(32 )
Operating Income 1,518 1,451 5
Interest income
154 158 (2 ) Interest expense
143 139
3 Equity income (loss) — net
87 239 (64 ) Other income
(loss) — net
(78 ) (633 )
88
Income Before Income Taxes
1,538 1,076 43 Income taxes
302
305 (1 )
Consolidated Net
Income 1,236 771 60 Less: Net income (loss) attributable
to noncontrolling interests
(1 )
1 —
Net Income Attributable
to Shareowners of The Coca-Cola Company $
1,237 $ 770 61
Diluted Net Income Per Share2
$ 0.28 $ 0.17
62
Average Shares Outstanding —
Diluted2 4,390
4,437
1 Certain growth rates may not recalculate
using the rounded dollar amounts provided.
2 For the three months ended December 31,
2015 and December 31, 2014, basic net income per share was $0.29
for 2015 and $0.18 for 2014 based on average shares outstanding —
basic of 4,336 million for 2015 and 4,375 million for 2014. 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)
Year Ended
December 31, 2015 December 31,2014 % Change1
Net
Operating Revenues $ 44,294 $ 45,998 (4 ) Cost of
goods sold
17,482 17,889
(2 )
Gross Profit 26,812 28,109
(5 ) Selling, general and administrative expenses
16,427
17,218 (5 ) Other operating charges
1,657
1,183 40
Operating Income 8,728 9,708 (10 ) Interest income
613 594 3 Interest expense
856 483 77 Equity income
(loss) — net
489 769 (36 ) Other income (loss) — net
631 (1,263 ) —
Income Before Income Taxes 9,605 9,325 3
Income taxes
2,239 2,201
2
Consolidated Net Income
7,366 7,124 3 Less: Net income (loss) attributable to
noncontrolling interests
15
26 (40 )
Net Income Attributable to
Shareowners of The Coca-Cola Company $
7,351 $ 7,098 4
Diluted Net Income Per Share2
$ 1.67 $ 1.60
5
Average Shares Outstanding — Diluted2
4,405 4,450
1 Certain growth rates may not recalculate
using the rounded dollar amounts provided.
2 For the years ended December 31, 2015
and December 31, 2014, basic net income per share was $1.69 for
2015 and $1.62 for 2014 based on average shares outstanding — basic
of 4,352 million for 2015 and 4,387 million for 2014. 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)
December 31, 2015 December
31,2014
ASSETS
Current Assets Cash and cash equivalents
$
7,309 $ 8,958 Short-term investments
8,322 9,052
Total Cash, Cash
Equivalents and Short-Term Investments
15,631 18,010 Marketable
securities
4,269 3,665 Trade accounts receivable, less
allowances of $352 and $331, respectively
3,941 4,466
Inventories
2,902 3,100 Prepaid expenses and other assets
2,752 3,066 Assets held for sale
3,900
679
Total Current Assets
33,395 32,986
Equity
Method Investments 12,318 9,947
Other Investments
3,470 3,678
Other Assets 4,207 4,407
Property, Plant and Equipment — net 12,571 14,633
Trademarks With Indefinite Lives 5,989 6,533
Bottlers' Franchise Rights With Indefinite Lives
6,000 6,689
Goodwill 11,289 12,100
Other
Intangible Assets 854
1,050
Total Assets $
90,093 $ 92,023
LIABILITIES AND
EQUITY
Current Liabilities Accounts payable and accrued expenses
$ 9,660 $ 9,234 Loans and notes payable
13,129
19,130 Current maturities of long-term debt
2,677 3,552
Accrued income taxes
331 400 Liabilities held for sale
1,133 58
Total
Current Liabilities 26,930
32,374
Long-Term Debt 28,407 19,063
Other Liabilities 4,301 4,389
Deferred Income
Taxes 4,691 5,636
The Coca-Cola Company Shareowners'
Equity
Common stock, $0.25 par value; Authorized
— 11,200 shares; Issued — 7,040 and 7,040 shares, respectively
1,760 1,760 Capital surplus
14,016 13,154 Reinvested
earnings
65,018 63,408 Accumulated other comprehensive
income (loss)
(10,174 ) (5,777 ) Treasury stock, at
cost — 2,716 and 2,674 shares, respectively
(45,066 ) (42,225 )
Equity
Attributable to Shareowners of The Coca-Cola Company
25,554 30,320
Equity Attributable to Noncontrolling
Interests 210 241
Total Equity 25,764
30,561
Total Liabilities and Equity
$ 90,093 $ 92,023
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(UNAUDITED) (In millions)
Year Ended December 31, 2015 December 31,2014
Operating Activities Consolidated net income
$
7,366 $ 7,124 Depreciation and amortization
1,970
1,976 Stock-based compensation expense
236 209 Deferred
income taxes
73 (40 ) Equity (income) loss — net of
dividends
(122 ) (371 ) Foreign currency adjustments
(137 ) 415 Significant (gains) losses on sales of
assets — net
(374 ) 831 Other operating charges
929 761 Other items
744 149 Net change in operating
assets and liabilities
(157 )
(439 ) Net cash provided by operating activities
10,528 10,615
Investing Activities Purchases of investments
(15,831
) (17,800 ) Proceeds from disposals of investments
14,079 12,986 Acquisitions of businesses, equity method
investments and nonmarketable securities
(2,491 )
(389 )
Proceeds from disposals of businesses,
equity method investments and nonmarketable securities
565 148 Purchases of property, plant and equipment
(2,553 ) (2,406 ) Proceeds from disposals of
property, plant and equipment
85 223 Other investing
activities
(40 ) (268 )
Net cash provided by (used in) investing activities
(6,186 ) (7,506 )
Financing
Activities Issuances of debt
40,434 41,674 Payments of
debt
(37,738 ) (36,962 ) Issuances of stock
1,245 1,532 Purchases of stock for treasury
(3,564
) (4,162 ) Dividends
(5,741 ) (5,350 ) Other
financing activities
251
(363 ) Net cash provided by (used in) financing activities
(5,113 ) (3,631 )
Effect of
Exchange Rate Changes on Cash and Cash Equivalents
(878 ) (934 )
Cash and Cash
Equivalents Net increase (decrease) during the year
(1,649 ) (1,456 ) Balance at beginning of year
8,958 10,414 Balance at
end of year
$ 7,309
$ 8,958
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Operating
Segments
(UNAUDITED) (In millions)
Three Months
Ended
Net Operating Revenues 1
Operating Income (Loss) Income
(Loss) Before Income Taxes December 31,
2015 December 31, 2014 % Fav. /
(Unfav.)
December 31, 2015
December 31, 2014 % Fav. / (Unfav.)
December 31, 2015 December 31, 2014
% Fav. / (Unfav.) Eurasia & Africa
$ 560
$ 631 (11 )
$ 225
$ 226 0
$ 219 $
232 (6 ) Europe
1,151 1,245 (7 )
614
489 26
619 494 26 Latin America
1,023 1,251 (18 )
528 362 46
515 362 42 North America
5,145
5,370 (4 )
411 432 (5 )
230 40 491 Asia Pacific
960 1,133 (15 )
313 407 (23 )
317 405 (22 )
Bottling Investments
1,377 1,483 (7 )
(34 )
(17 ) (106 )
74 234 (69 ) Corporate
46 10 339
(539 ) (448 ) (20 )
(436 ) (691 ) 37
Eliminations
(262 )
(251 ) (4 )
— —
—
—
— — Consolidated
$ 10,000 $ 10,872
(8 )
$
1,518 $ 1,451
5
$ 1,538
$ 1,076 43
Note: Certain growth rates may not recalculate using
the rounded dollar amounts provided.
1 During the three months ended December
31, 2015, intersegment revenues were $14 million for Eurasia and
Africa, $136 million for Europe, $19 million for Latin America, $4
million for North America, $69 million for Asia Pacific, $10
million for Bottling Investments and $10 million for Corporate.
During the three months ended December 31, 2014, intersegment
revenues were $162 million for Europe, $14 million for Latin
America, $4 million for North America, $57 million for Asia Pacific
and $14 million for Bottling Investments.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Operating
Segments
(UNAUDITED) (In millions)
Year
Ended
Net Operating Revenues 1
Operating Income (Loss) Income (Loss)
Before Income Taxes December 31, 2015
December 31, 2014 % Fav. / (Unfav.)
December 31, 2015 December 31, 2014 % Fav. /
(Unfav.)
December 31, 2015 December 31, 2014
% Fav. / (Unfav.) Eurasia & Africa
$ 2,459
$ 2,730 (10 )
$ 987 $ 1,084
(9 )
$ 1,004 $ 1,125 (11 )
Europe
5,128 5,536 (7 )
2,888 2,852 1
2,919
2,892 1 Latin America
4,074 4,657 (13 )
2,169 2,316
(6 )
2,164 2,319 (7 ) North America
21,802 21,479 2
2,490 2,447 2
1,475 1,633 (10 ) Asia Pacific
5,252 5,746 (9 )
2,189 2,448 (11 )
2,207 2,464
(10 ) Bottling Investments
6,731 7,039 (4 )
0 9 —
454 715 (37 ) Corporate
166 136 22
(1,995
) (1,448 ) (38 )
(618 ) (1,823 ) 66
Eliminations
(1,318 )
(1,325 ) 1
—
— —
— — —
Consolidated
$ 44,294
$ 45,998 (4 )
$
8,728 $ 9,708 (10
)
$ 9,605 $ 9,325
3 Note: Certain growth rates may
not recalculate using the rounded dollar amounts provided.
1 During the year ended December 31, 2015,
intersegment revenues were $36 million for Eurasia and Africa, $585
million for Europe, $75 million for Latin America, $18 million for
North America, $545 million for Asia Pacific, $49 million for
Bottling Investments and $10 million for Corporate. During the year
ended December 31, 2014, intersegment revenues were $692 million
for Europe, $60 million for Latin America, $17 million for North
America, $489 million for Asia Pacific and $67 million for Bottling
Investments.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
("GAAP" or referred to herein as "reported"). However, management
believes that certain non-GAAP financial measures provide users
with additional meaningful financial information that should be
considered when assessing our ongoing performance. Management also
uses these non-GAAP financial measures in making financial,
operating and planning decisions and in evaluating the Company's
performance. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company’s reported
results prepared in accordance with GAAP. Our non-GAAP financial
information does not represent a comprehensive basis of
accounting.
ITEMS IMPACTING COMPARABILITY
The following information is provided to give qualitative and
quantitative information related to items impacting comparability.
Items impacting comparability are not defined terms within GAAP.
Therefore, our non-GAAP financial information may not be comparable
to similarly titled measures reported by other companies. We
determine which items to consider as "items impacting
comparability" based on how management views our business; makes
financial, operating and planning decisions; and evaluates the
Company's ongoing performance. Items such as charges, gains and
accounting changes which are viewed by management as impacting only
the current period or the comparable period, but not both, or as
relating to different and unrelated underlying activities or events
across comparable periods, are generally considered "items
impacting comparability". In addition, we provide the impact that
changes in foreign currency exchange rates had on our financial
results ("currency neutral").
Asset Impairments and Restructuring
Restructuring
During the three months and year ended December 31, 2015,
the Company recorded charges of $88 million and $292 million,
respectively. The Company recorded charges of $66 million and
$208 million during the three months and year ended
December 31, 2014, respectively. These charges were related to
the integration of our German bottling and distribution
operations.
Productivity and Reinvestment
During the three months and year ended December 31, 2015,
the Company recorded charges of $368 million and $691 million,
respectively, related to our productivity and reinvestment program.
The Company also recorded charges of $342 million and
$601 million during the three months and year ended
December 31, 2014, respectively. These productivity and
reinvestment initiatives are focused on four key areas:
restructuring the Company's global supply chain, including
manufacturing in North America; implementing zero-based work, an
evolution of zero-based budget principles across the organization;
streamlining and simplifying the Company's operating model; and
further driving increased discipline and efficiency in direct
marketing investments. The savings realized from the program will
enable the Company to fund marketing initiatives and innovation
required to deliver sustainable net revenue growth. The savings
will also support margin expansion and increased returns on
invested capital over time.
Equity Investees
During the three months and year ended December 31, 2015,
the Company recorded net charges of $8 million and
$87 million, respectively. During the three months and year
ended December 31, 2014, the Company recorded a net gain of
$2 million and a net charge of $18 million, respectively.
These amounts represent the Company’s proportionate share of
unusual or infrequent items recorded by certain of our equity
method investees.
Transaction Gains/Losses
During the three months and year ended
December 31, 2015, the Company recorded charges of $179
million and $1,027 million, respectively. The Company recorded
charges of $389 million and $799 million during the three months
and year ended December 31, 2014, respectively. These charges
were primarily due to the derecognition of intangible assets
relating to the refranchising of territories in North America to
certain of its unconsolidated bottling partners and were recorded
in the line item other income (loss) — net in our condensed
consolidated statements of income.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Transaction Gains/Losses (continued)
During the year ended December 31, 2015, the Company
recorded a net gain of $1,403 million as a result of our
transaction with Monster Beverage Corporation ("Monster"),
primarily due to the difference in the recorded carrying value of
the assets transferred, including an allocated portion of goodwill,
compared to the value of the total assets and business acquired.
This net gain was recorded in the line item other income (loss) —
net in our condensed consolidated statement of income.
Additionally, under the terms of this transaction, the Company was
required to discontinue selling energy products under certain
trademarks, including one trademark in the glacéau portfolio.
During the year ended December 31, 2015, the Company
recognized impairment charges of $418 million primarily related to
the discontinuation of the energy products in the glacéau portfolio
as a result of the transaction with Monster. These charges were
recorded in the line item other operating charges in our condensed
consolidated statement of income.
During the three months and year ended December 31, 2015,
the Company recorded charges of $21 million and $30 million,
respectively. During the three months and year ended
December 31, 2014, the Company recorded charges of $15
million. These charges were due to noncapitalizable transaction
costs associated with the Monster transaction and transactions for
which the related assets and liabilities qualify as held for
sale.
In the fourth quarter of 2014, the owners of the majority
interest of a Brazilian bottler exercised their option to acquire
from us a 10 percent interest in the entity's outstanding shares
resulting in our recognizing an estimated loss of $32 million due
to the exercise price being lower than our carrying value. The
transaction closed in January 2015, and the Company recorded an
additional loss of $6 million during the year ended December 31,
2015, calculated based on the final option price. Also during the
year ended December 31, 2015, the Company recorded a loss of $19
million on our previously held investment in a South African
bottler, which had been accounted for under the equity method of
accounting prior to our acquisition of the bottler in February
2015.
During the year ended December 31, 2014, the Company
recorded a charge of $7 million associated with our indemnification
of a previously consolidated entity. The impact of this charge
effectively reduced the initial gain the Company recognized when we
sold the entity.
Other Items
Donation to The Coca-Cola Foundation
During the year ended December 31, 2015, the Company
recorded a charge of $100 million due to a contribution made to The
Coca-Cola Foundation, which was recorded in the line item other
operating charges in our condensed consolidated statement of
income.
Economic (Nondesignated) Hedges
The Company uses derivatives as economic hedges primarily to
mitigate the price risk associated with the purchase of materials
used in the manufacturing process as well as the purchase of
vehicle fuel. Although these derivatives were not designated and/or
did not qualify for hedge accounting, they are effective economic
hedges. The changes in fair values of these economic hedges are
immediately recognized into earnings.
The Company excludes the net impact of mark-to-market
adjustments for outstanding hedges and realized gains/losses for
settled hedges from our non-GAAP financial information until the
period in which the underlying exposure being hedged impacts our
condensed consolidated statement of income. We believe this
adjustment provides meaningful information related to the impact of
our economic hedging activities. During the three months and year
ended December 31, 2015, the net impact of the Company's
adjustment related to our economic hedging activities described
above resulted in a decrease of $52 million and an increase of $24
million, respectively, to our non-GAAP income before income taxes.
During the three months and year ended December 31, 2014, the
net impact of the Company's adjustment related to our economic
hedging activities described above resulted in increases of $175
million and $55 million, respectively, to our non-GAAP income
before income taxes.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Other Items (continued)
Early Extinguishment of Long-Term Debt
During the year ended December 31, 2015, the Company recorded
charges of $320 million due to the early extinguishment of certain
long-term debt, which were recorded in the line item interest
expense in our condensed consolidated statement of income.
Hyperinflationary Economies
During the year ended December 31, 2015, the Company
recorded net charges of $138 million related to our Venezuelan
operations. These charges were primarily a result of the
remeasurement of the net monetary assets of our Venezuelan
subsidiary using the SIMADI exchange rate, an impairment of a
Venezuelan trademark due to higher exchange rates, and a write-down
of receivables from our bottling partner in Venezuela. The
write-down was recorded primarily as a result of the continued lack
of liquidity and our revised assessment of the U.S. dollar value we
expect to realize upon the conversion of the Venezuelan bolivar
into U.S. dollars by our bottling partner to pay our
receivables.
During the three months and year ended December 31, 2014,
the Company recorded net charges of $393 million and
$661 million, respectively, related to the devaluation of the
Venezuelan bolivar, including a write-down of receivables from our
bottling partner in Venezuela as well as our proportionate share of
the charge incurred by our bottling partner in Venezuela, an equity
method investee.
Other
During the year ended December 31, 2015, the Company recorded
other charges of $15 million. These charges related to tax
litigation expense, charges associated with certain fixed assets
and costs associated with restructuring and transitioning the
Company's Russian juice operations to an existing joint venture
with an unconsolidated bottling partner.
During the three months and year ended December 31, 2014,
the Company recorded losses of $10 million and
$40 million, respectively, related to restructuring and
transitioning the Company's Russian juice operations.
Certain Tax Matters
During the three months and year ended December 31, 2015,
the Company recorded a net tax charge of $1 million and a net
tax benefit of $5 million, respectively, related to amounts
required to be recorded for changes to our uncertain tax positions,
including interest and penalties. During the three months and year
ended December 31, 2014, the Company recorded net tax charges
of $5 million and $7 million, respectively, related to amounts
required to be recorded for changes to our uncertain tax positions,
including interest and penalties.
CURRENCY NEUTRAL
Management evaluates the operating performance of our Company
and our international subsidiaries on a currency neutral basis. We
determine our currency neutral operating results by dividing or
multiplying, as appropriate, our current period actual U.S. dollar
operating results, normalizing for certain structural items in
hyperinflationary economies, by the current period actual exchange
rates (that include the impact of current period currency hedging
activities), to derive our current period local currency operating
results. We then multiply or divide, as appropriate, the derived
current period local currency operating results by the foreign
currency exchange rates (that also include the impact of the
comparable prior period currency hedging activities) used to
translate the Company's financial statements in the comparable
prior year period to determine what the current period U.S. dollar
operating results would have been if the foreign currency exchange
rates had not changed from the comparable prior year period.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
ORGANIC REVENUE
Organic revenue is a non-GAAP financial measure that excludes or
otherwise adjusts for the impact of changes in foreign currency
exchange rates and acquisitions and divestitures (including
structural changes), as applicable. The adjustments related to
acquisitions and divestitures for the three months and years ended
December 31, 2015 and December 31, 2014 consisted
entirely of the structural changes discussed below.
STRUCTURAL CHANGES
Structural changes generally refer to acquisitions or
dispositions of bottling, distribution or canning operations and
consolidation or deconsolidation of bottling and distribution
entities for accounting purposes. In 2015, the Company refranchised
additional territories in North America to certain of its
unconsolidated bottling partners; sold its global energy drink
business to Monster; acquired Monster's non-energy drink business;
acquired an equity interest in Monster; amended its current
distribution coordination agreements with Monster to expand into
additional territories; and acquired a South African bottler. In
2014, the Company refranchised territories in North America to
certain of its unconsolidated bottling partners; changed its
process of buying and selling recyclable materials in North
America; acquired bottling operations in Sri Lanka and Nepal; and
restructured and transitioned its Russian juice operations to an
existing joint venture with an unconsolidated bottling partner.
Accordingly, these activities have been included as structural
items in our analysis of the impact of these changes on certain
line items in our condensed consolidated statements of income.
2016 OUTLOOK
Our 2016 organic revenue outlook, comparable currency neutral
income before taxes (structurally adjusted) outlook, and comparable
currency neutral EPS outlook are non-GAAP financial measures that
exclude or otherwise adjust for items impacting comparability, the
impact of changes in foreign currency exchange rates, acquisitions
and divestitures, and the impact of structural items, as
applicable. We are not able to reconcile our full-year 2016
projected organic revenue to our full-year 2016 projected reported
net revenue, our full-year 2016 projected comparable currency
neutral income before taxes (structurally adjusted) to our
full-year 2016 projected reported income before taxes, or our
full-year 2016 projected comparable currency neutral EPS to our
full-year 2016 projected reported EPS because we are unable to
predict the actual impact of changes in foreign currency exchange
rates and the exact timing of acquisitions and divestitures and/or
structural adjustments throughout 2016.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions except per share data)
Three
Months Ended December 31, 2015
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Grossmargin
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
Operatingmargin
Reported (GAAP) $ 10,000
$ 4,054 $ 5,946
59.5 % $ 3,937
$ 491 $
1,518 15.2 % Items Impacting
Comparability: Asset Impairments/Restructuring — — — — (88 ) 88
Productivity & Reinvestment — — — — (368 ) 368 Equity Investees
— — — — — — Transaction Gains/Losses — — — — (21 ) 21 Other Items 5
— 5 8 (14 ) 11 Certain Tax Matters — — — —
— — After Considering Items (Non-GAAP)
$ 10,005 $ 4,054 $ 5,951
59.5 % $ 3,945
$ — $ 2,006
20.0 %
Three Months
Ended December 31, 2014
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Grossmargin
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
Operatingmargin
Reported (GAAP) $ 10,872 $ 4,357
$ 6,515 59.9 % $ 4,338
$ 726 $ 1,451 13.3 %
Items Impacting Comparability: Asset Impairments/Restructuring — —
— — (66 ) 66 Productivity & Reinvestment — — — — (342 ) 342
Equity Investees — — — — — — Transaction Gains/Losses — — — — (15 )
15 Other Items 29 (75 ) 104 (48 ) (303 ) 455 Certain Tax Matters —
— — — — — After
Considering Items (Non-GAAP) $ 10,901 $
4,282 $ 6,619 60.7 %
$ 4,290 $ —
$ 2,329 21.4 %
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
% Change — Reported (GAAP) (8) (7)
(9) (9) (32) 5 % Currency Impact (7)
(4) (9) (5) — (21) % Change — Currency Neutral Reported (1)
(3) 0 (4)
— 26
% Change — After Considering
Items
(Non-GAAP)
(8) (5) (10) (8) — (14) % Currency Impact After Considering Items
(Non-GAAP) (7) (4) (8) (5) — (13) % Change — Currency Neutral After
Considering Items (Non-GAAP) (2) (1)
(2) (3) — 0
Note: Certain columns may not add due to
rounding. Certain growth rates may not recalculate using the
rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions except per share data)
Three Months Ended December 31, 2015
Interestexpense
Equityincome(loss) —net
Otherincome(loss) —net
Incomebeforeincometaxes
Income
taxes
Effective
tax rate
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednetincome
pershare1
Reported (GAAP) $ 143
$ 87 $ (78 )
$ 1,538 $
302 19.6 %
$ (1 ) $ 1,237
$ 0.28 Items Impacting Comparability:
Asset Impairments/Restructuring — — — 88 — — 88 0.02 Productivity
& Reinvestment — — — 368 135 — 233 0.05 Equity Investees — 8 —
8 — — 8 — Transaction Gains/Losses — — 178 199 65 — 134 0.03 Other
Items — — (49 ) (38 ) (15 ) — (23 ) (0.01 ) Certain Tax Matters —
— — — (1 ) — 1 —
After Considering Items (Non-GAAP) $ 143
$ 95 $ 51 $ 2,163
$ 486 22.5 %
$ (1 ) $ 1,678 $
0.38
Three Months Ended December 31, 2014
Interestexpense
Equityincome(loss) —net
Other income(loss) —net
Incomebeforeincometaxes
Income
taxes
Effective
tax rate
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednetincome
pershare2
Reported (GAAP) $ 139 $ 239
$ (633 ) $ 1,076 $
305 28.3 % $ 1 $
770 $ 0.17 Items Impacting Comparability:
Asset Impairments/Restructuring — — — 66 — — 66 0.01 Productivity
& Reinvestment — — — 342 95 — 247 0.06 Equity Investees — (2 )
— (2 ) 3 — (5 ) — Transaction Gains/Losses — — 421 436 149 — 287
0.06 Other Items — (46 ) 170 579 14 — 565 0.13 Certain Tax Matters
— — — — (5 ) — 5 —
After Considering Items (Non-GAAP) $ 139
$ 191 $ (42 ) $ 2,497
$ 561 22.5 %
$ 1 $ 1,935
$ 0.44
Interestexpense
Equity income(loss) —net
Otherincome(loss) —net
Incomebeforeincometaxes
Income
taxes
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednetincome
pershare
% Change — Reported (GAAP) 3 (64) 88
43 (1) — 61 62 % Change — After
Considering Items (Non-GAAP) 3 (50)
— (13) (13)
— (13) (12) Note: Certain
columns may not add due to rounding. Certain growth rates may not
recalculate using the rounded dollar amounts provided.
1 4,390 million average shares outstanding
— diluted
2 4,437 million average shares outstanding
— diluted
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions except per share data)
Year Ended
December 31, 2015
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Grossmargin
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
Operatingmargin
Reported (GAAP) $ 44,294
$ 17,482 $ 26,812
60.5 % $ 16,427
$ 1,657 $
8,728 19.7 % Items Impacting
Comparability: Asset Impairments/Restructuring — — — — (292 ) 292
Productivity & Reinvestment — — — — (691 ) 691 Equity Investees
— — — — — — Transaction Gains/Losses — — — — (448 ) 448 Other Items
(37 ) (66 ) 29 41 (226 ) 214 Certain Tax Matters — —
— — — — After Considering Items
(Non-GAAP) $ 44,257 $ 17,416
$ 26,841 60.6 % $
16,468 $ — $ 10,373
23.4 %
Year Ended December 31, 2014
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Grossmargin
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
Operatingmargin
Reported (GAAP) $ 45,998 $
17,889 $ 28,109 61.1 % $
17,218 $ 1,183 $ 9,708
21.1 % Items Impacting Comparability: Asset
Impairments/Restructuring — — — — (208 ) 208 Productivity &
Reinvestment — — — — (601 ) 601 Equity Investees — — — — — —
Transaction Gains/Losses — — — — (22 ) 22 Other Items 14 13 1 (62 )
(352 ) 415 Certain Tax Matters — — — —
— — After Considering Items (Non-GAAP)
$ 46,012 $ 17,902 $
28,110 61.1 % $ 17,156
$ — $ 10,954
23.8 %
Netoperatingrevenues
Cost ofgoodssold
Grossprofit
Selling,general
andadministrativeexpenses
Otheroperatingcharges
Operatingincome
% Change — Reported (GAAP) (4) (2)
(5) (5) 40 (10) % Currency Impact (7)
(5) (8) (6) — (12) % Change — Currency Neutral Reported
3 2 4 2
— 2
% Change — After
Considering Items
(Non-GAAP)
(4) (3) (5) (4) — (5) % Currency Impact After Considering Items
(Non-GAAP) (7) (5) (8) (6) — (11) % Change — Currency Neutral After
Considering Items (Non-GAAP) 3 2
4 2 — 6
Note: Certain columns
may not add due to rounding. Certain growth rates may not
recalculate using the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions except per share data)
Year Ended December 31, 2015
Interestexpense
Equityincome(loss)— net
Otherincome(loss) —net
Incomebeforeincometaxes
Income
taxes
Effective
tax rate
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednetincomepershare1
Reported (GAAP) $ 856
$ 489 $ 631
$ 9,605 $ 2,239
23.3 % $ 15
$ 7,351 $ 1.67
Items Impacting Comparability: Asset Impairments/Restructuring — —
— 292 — — 292 0.07 Productivity & Reinvestment — — — 691 259 —
432 0.10 Equity Investees — 87 — 87 5 — 82 0.02 Transaction
Gains/Losses — — (351 ) 97 (108 ) — 205 0.05 Other Items (320 ) —
64 598 158 — 440 0.10 Certain Tax Matters — — —
— 5 — (5 ) — After Considering Items
(Non-GAAP) $ 536 $ 576
$ 344 $ 11,370 $
2,558 22.5 % $ 15
$ 8,797 $ 2.00
Year Ended
December 31, 2014
Interestexpense
Equityincome(loss) —net
Otherincome(loss) —net
Incomebeforeincometaxes
Income
taxes
Effective
tax rate
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednetincomepershare2
Reported (GAAP) $ 483 $ 769
$ (1,263 ) $ 9,325 $
2,201 23.6 % $ 26 $
7,098 $ 1.60 Items Impacting Comparability:
Asset Impairments/Restructuring — — — 208 — — 208 0.05 Productivity
& Reinvestment — — — 601 191 — 410 0.09 Equity Investees — 18 —
18 6 — 12 — Transaction Gains/Losses — — 831 853 296 — 557 0.13
Other Items — (25 ) 368 758 (41 ) — 799 0.18 Certain Tax Matters —
— — — (7 ) — 7 — After
Considering Items (Non-GAAP) $ 483 $
762 $ (64 ) $ 11,763
$ 2,646 22.5 %
$ 26 $ 9,091 $
2.04
Interestexpense
Equityincome(loss) —net
Otherincome(loss) —net
Incomebeforeincometaxes
Income
taxes
Net income(loss)attributable
tononcontrollinginterests
Net incomeattributable toshareowners ofThe
Coca-ColaCompany
Dilutednet incomepershare
% Change — Reported (GAAP) 77 (36) —
3 2 (40) 4 5 % Change — After
Considering Items (Non-GAAP) 11 (24)
— (3) (3)
(40) (3) (2) Note:
Certain columns may not add due to rounding. Certain growth rates
may not recalculate using the rounded dollar amounts provided.
1 4,405 million average shares outstanding
— diluted
2 4,450 million average shares outstanding
— diluted
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Income Before
Income Taxes and Diluted Net Income Per Share:
Three Months Ended December 31, 2015
Income beforeincome taxes
Diluted net incomeper share
% Change — Reported (GAAP) 43 62 % Currency
Impact (9) (10) % Change — Currency Neutral Reported 52 73 %
Structural Impact (8) N/A % Change — Currency Neutral Reported and
Adjusted for Structural Impact 62 N/A
% Change — After Considering Items
(Non-GAAP) (13) (12) % Currency Impact After Considering Items
(Non-GAAP) (10) (10) % Change — Currency Neutral After Considering
Items (Non-GAAP) (3) (2) % Structural Impact After Considering
Items (Non-GAAP) (1) N/A % Change — Currency Neutral After
Considering Items and Adjusted for Structural Impact (Non-GAAP)
(2) N/A
Year Ended December 31, 2015
Income beforeincometaxes
Diluted net incomeper share
% Change — Reported (GAAP) 3 5 % Currency
Impact (6) (6) % Change — Currency Neutral Reported 9 10 %
Structural Impact (1) N/A % Change — Currency Neutral Reported and
Adjusted for Structural Impact 9 N/A
% Change — After Considering Items
(Non-GAAP) (3) (2) % Currency Impact After Considering Items
(Non-GAAP) (8) (8) % Change — Currency Neutral After Considering
Items (Non-GAAP) 5 6 % Structural Impact After Considering Items
(Non-GAAP) (1) N/A % Change — Currency Neutral After Considering
Items and Adjusted for Structural Impact (Non-GAAP) 6
N/A
Note:
Certain columns may not add due to
rounding.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Net Operating
Revenues by Segment:
Three
Months Ended December 31, 2015
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
Reported (GAAP) $ 560
$ 1,151 $ 1,023 $ 5,145
$ 960 $ 1,377 $ 46
$ (262 ) $ 10,000 Items
Impacting Comparability: Asset Impairments/Restructuring — — — — —
— — — — Productivity & Reinvestment — — — — — — — — — Equity
Investees — — — — — — — — — Transaction Gains/Losses — — — — — — —
— — Other Items — —
— (5 ) —
— 10 —
5 After Considering Items (Non-GAAP) $ 560
$ 1,151 $ 1,023
$ 5,140 $ 960
$ 1,377 $ 56 $
(262 ) $ 10,005
Three Months Ended December 31, 2014
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
Reported (GAAP) $ 631 $
1,245 $ 1,251 $ 5,370 $
1,133 $ 1,483 $ 10 $
(251 ) $ 10,872 Items Impacting
Comparability: Asset Impairments/Restructuring — — — — — — — — —
Productivity & Reinvestment — — — — — — — — — Equity Investees
— — — — — — — — — Transaction Gains/Losses — — — — — — — — — Other
Items — — —
28 — —
1 —
29 After Considering Items (Non-GAAP) $ 631
$ 1,245 $ 1,251 $
5,398 $ 1,133 $ 1,483
$ 11 $ (251 )
$ 10,901
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
% Change — Reported (GAAP) (11)
(7) (18) (4) (15) (7) 339
(4) (8) % Currency Impact (16) (5) (25) (1) (6) (11)
(98) — (7) % Change — Currency Neutral Reported 5 (3) 7 (3) (9) 4
437 — (1) % Acquisition & Divestiture Adjustments (2) (1) 0 (1)
0 4 72 — 0 % Change — Organic Revenues (Non-GAAP) 7
(2) 7 (2) (9)
0 365 — (1)
% Change —
After Considering Items (Non-GAAP) (11) (7) (18) (5) (15) (7) 416 —
(8) % Currency Impact After Considering Items (Non-GAAP) (16) (5)
(25) (1) (6) (11) (12) — (7) % Change — Currency Neutral After
Considering Items (Non-GAAP) 5 (3)
7 (4) (9) 4
428 — (2)
Note: Certain columns may not add due to
rounding. Certain growth rates may not recalculate using
the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Net Operating
Revenues by Segment:
Year Ended December 31, 2015
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
Reported (GAAP) $ 2,459
$ 5,128 $ 4,074 $ 21,802
$ 5,252 $ 6,731 $ 166
$ (1,318 ) $ 44,294 Items
Impacting Comparability: Asset Impairments/Restructuring — — — — —
— — — — Productivity & Reinvestment — — — — — — — — — Equity
Investees — — — — — — — — — Transaction Gains/Losses — — — — — — —
— — Other Items — — —
(24 ) — —
(13 ) — (37
) After Considering Items (Non-GAAP) $ 2,459
$ 5,128 $ 4,074 $
21,778 $ 5,252 $ 6,731
$ 153 $ (1,318 )
$ 44,257
Year Ended December 31, 2014
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
Reported (GAAP) $ 2,730 $
5,536 $ 4,657 $ 21,479 $
5,746 $ 7,039 $ 136 $
(1,325 ) $ 45,998 Items Impacting
Comparability: Asset Impairments/Restructuring — — — — — — — — —
Productivity & Reinvestment — — — — — — — — — Equity Investees
— — — — — — — — — Transaction Gains/Losses — — — — — — — — — Other
Items — — —
37 — (20 )
(3 ) — 14 After
Considering Items (Non-GAAP) $ 2,730 $
5,536 $ 4,657 $ 21,516
$ 5,746 $ 7,019
$ 133 $ (1,325 ) $
46,012
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Eliminations
Consolidated
% Change — Reported (GAAP) (10)
(7) (13) 2 (9) (4) 22
1 (4) % Currency Impact (14) (9) (23) (1) (8) (10) 0
— (7) % Change — Currency Neutral Reported 4 2 10 3 (1) 6 22 — 3 %
Acquisition & Divestiture Adjustments (1) (1) 0 (1) 0 3 11 — 0
% Change — Organic Revenues (Non-GAAP) 5 2
11 4 0 3
11 — 4
% Change — After
Considering Items (Non-GAAP) (10) (7) (13) 1 (9) (4) 15 — (4) %
Currency Impact After Considering Items (Non-GAAP) (14) (9) (23)
(1) (8) (10) (8) — (7) % Change — Currency Neutral After
Considering Items (Non-GAAP) 4 2
10 2 (1) 6
23 — 3
Note:
Certain columns may not add due to
rounding. Certain growth rates may not recalculate using
the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Operating Income
(Loss) by Segment:
Three Months Ended
December 31, 2015
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 225 $
614 $ 528 $
411 $ 313 $
(34 ) $ (539 )
$ 1,518 Items Impacting Comparability:
Asset Impairments/Restructuring — — — — — 88 — 88 Productivity
& Reinvestment — (12 ) — 145 3 39 193 368 Equity Investees — —
— — — — — — Transaction Gains/Losses — — — — — 3 18 21 Other Items
— — —
(9 ) — (3 )
23 11 After Considering Items
(Non-GAAP) $ 225 $ 602
$ 528 $ 547 $ 316
$ 93 $ (305 )
$ 2,006
Three Months
Ended December 31, 2014
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 226 $ 489 $
362 $ 432 $ 407 $
(17 ) $ (448 ) $
1,451 Items Impacting Comparability: Asset
Impairments/Restructuring — — — — — 66 — 66 Productivity &
Reinvestment 25 109 20 89 26 3 70 342 Equity Investees — — — — — —
— — Transaction Gains/Losses — — — — — — 15 15 Other Items —
— 275 151
1 9
19 455 After Considering Items (Non-GAAP)
$ 251 $ 598 $ 657
$ 672 $ 434
$ 61 $ (344 ) $ 2,329
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
% Change —
Reported (GAAP) 0 26 46 (5)
(23) (106) (20) 5 % Currency Impact
(26) 0 (63) 2 (6) (27) 0 (21) % Change — Currency Neutral Reported
26 26 109 (7)
(17) (79) (21)
26
% Change — After
Considering Items (Non-GAAP) (10) 1 (20) (19) (27) 52 11 (14) %
Currency Impact After Considering Items (Non-GAAP) (23) 0 (35) 1
(5) (29) 3 (13) % Change — Currency Neutral After Considering Items
(Non-GAAP) 13 1 15
(20) (22) 81 8
0
Note: Certain columns may not
add due to rounding. Certain growth rates may not
recalculate using the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Operating Income
(Loss) by Segment:
Year Ended December
31, 2015
Eurasia& Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 987 $ 2,888
$ 2,169 $ 2,490 $ 2,189
$ 0 $ (1,995 ) $
8,728 Items Impacting Comparability: Asset
Impairments/Restructuring — — — — — 292 — 292 Productivity &
Reinvestment 16 (25 ) 7 384 2 61 246 691 Equity Investees — — — — —
— — — Transaction Gains/Losses — — — — — 3 445 448 Other Items —
— 33
(1 ) 2 3
177 214 After Considering Items (Non-GAAP)
$ 1,003 $ 2,863 $
2,209 $ 2,873 $ 2,193
$ 359 $ (1,127 )
$ 10,373
Year Ended December 31, 2014
Eurasia &Africa
Europe Latin America
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 1,084 $ 2,852 $
2,316 $ 2,447 $ 2,448 $
9 $ (1,448 ) $ 9,708
Items Impacting Comparability: Asset Impairments/Restructuring — —
— — — 208 — 208 Productivity & Reinvestment 26 111 20 281 36 3
124 601 Equity Investees — — — — — — — — Transaction Gains/Losses —
— — — — — 22 22 Other Items — —
275 61 1
39 39 415
After Considering Items (Non-GAAP) $ 1,110
$ 2,963 $ 2,611 $
2,789 $ 2,485 $ 259
$ (1,263 ) $ 10,954
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
% Change —
Reported (GAAP) (9) 1 (6) 2
(11) — (38) (10) % Currency Impact (16)
(3) (31) 0 (8) — 2 (12) % Change — Currency Neutral Reported
7 5 25 2
(3) — (40) 2
% Change — After Considering Items
(Non-GAAP) (10) (3) (15) 3 (12) 38 11 (5) % Currency Impact After
Considering Items (Non-GAAP) (15) (3) (28) 0 (8) (21) 1 (11) %
Change — Currency Neutral After Considering Items (Non-GAAP)
6 0 12 3
(4) 59 9 6
Note: Certain columns may not add due to
rounding. Certain growth rates may not recalculate using
the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Income (Loss)
Before Income Taxes by Segment:
Three Months
Ended December 31, 2015
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
Asia Pacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 219 $
619 $ 515 $ 230 $
317 $ 74 $ (436 )
$ 1,538 Items Impacting Comparability: Asset
Impairments/Restructuring — — — — — 88 — 88 Productivity &
Reinvestment — (12 ) — 145 3 39 193 368 Equity Investees — 1 — — —
7 — 8 Transaction Gains/Losses — — — 180 — 3 16 199 Other Items —
— —
(9 ) — (3 ) (26 )
(38 ) After Considering Items (Non-GAAP) $ 219
$ 608 $ 515
$ 546 $ 320 $ 208
$ (253 ) $ 2,163
Three Months Ended December 31,
2014
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 232 $ 494 $
362 $ 40 $ 405 $
234 $ (691 ) $ 1,076
Items Impacting Comparability: Asset Impairments/Restructuring — —
— — — 66 — 66 Productivity & Reinvestment 25 109 20 89 26 3 70
342 Equity Investees — 2 — — — (4 ) — (2 ) Transaction Gains/Losses
— — — 389 — — 47 436 Other Items — —
275 151
1 (37 ) 189
579 After Considering Items (Non-GAAP) $ 257
$ 605 $ 657
$ 669 $ 432 $ 262
$ (385 ) $ 2,497
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
% Change —
Reported (GAAP) (6) 26 42 491
(22) (69) 37 43 % Currency Impact (26)
0 (62) 22 (6) (13) 34 (9) % Change — Currency Neutral Reported
20 26 104 469
(16) (55) 3
52
% Change — After Considering
Items(Non-GAAP) (15) 1 (22) (18) (26) (21) 34 (13) % Currency
Impact After Considering Items (Non-GAAP) (23) 0 (34) 1 (5) (18) 25
(10) % Change — Currency Neutral After Considering Items (Non-GAAP)
9 1 12 (19)
(21) (3) 9 (3)
Note: Certain columns may not
add due to rounding. Certain growth rates may not
recalculate using the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Income (Loss)
Before Income Taxes by Segment:
Year Ended December
31, 2015
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 1,004 $
2,919 $ 2,164 $ 1,475 $
2,207 $ 454 $ (618 )
$ 9,605 Items Impacting Comparability: Asset
Impairments/Restructuring — — — — — 292 — 292 Productivity &
Reinvestment 16 (25 ) 7 384 2 61 246 691 Equity Investees (3 ) 7 —
— — 83 — 87 Transaction Gains/Losses — — — 1,007 — 3 (913 ) 97
Other Items — — 33
(1 ) 2 3
561 598 After Considering
Items (Non-GAAP) $ 1,017 $ 2,901
$ 2,204 $ 2,865
$ 2,211 $ 896 $
(724 ) $ 11,370
Year Ended December 31, 2014
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
Reported
(GAAP) $ 1,125 $ 2,892 $
2,319 $ 1,633 $ 2,464 $
715 $ (1,823 ) $ 9,325
Items Impacting Comparability: Asset Impairments/Restructuring — —
— — — 208 — 208 Productivity & Reinvestment 26 111 20 281 36 3
124 601 Equity Investees — 2 — — — 16 — 18 Transaction Gains/Losses
— — — 799 — — 54 853 Other Items — —
275 61
1 14 407
758 After Considering Items (Non-GAAP) $ 1,151
$ 3,005 $ 2,614
$ 2,774 $ 2,501
$ 956 $ (1,238 ) $ 11,763
Eurasia &Africa
Europe
LatinAmerica
NorthAmerica
AsiaPacific
BottlingInvestments
Corporate Consolidated
% Change —
Reported (GAAP) (11) 1 (7) (10)
(10) (37) 66 3 % Currency Impact (15)
(4) (31) 0 (8) (12) 41 (6) % Change — Currency Neutral Reported
5 5 24 (10)
(2) (25) 25 9
% Change — After Considering
Items(Non-GAAP) (12) (3) (16) 3 (12) (6) 41 (3) % Currency Impact
After Considering Items (Non-GAAP) (15) (4) (27) 0 (8) (16) 31 (8)
% Change — Currency Neutral After Considering Items (Non-GAAP)
3 0 12 3
(4) 10 10 5
Note: Certain columns may not
add due to rounding. Certain growth rates may not
recalculate using the rounded dollar amounts provided.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Operating Expense
Leverage:
Three
Months Ended December 31, 2015 Operating income
Gross profit
Operatingexpenseleverage1
% Change — Reported (GAAP) 5 (9) 13 %
Change — Currency Neutral Reported 26 0
26 %
Change — After Considering Items (Non-GAAP) (14) (10) (4) % Change
— Currency Neutral After Considering Items (Non-GAAP) 0
(2) 1
Year Ended December 31,
2015 Operating income Gross profit
Operating expense leverage1
% Change — Reported
(GAAP) (10) (5) (5) % Change — Currency
Neutral Reported 2 4 (2)
% Change — After
Considering Items (Non-GAAP) (5) (5) (1) % Change — Currency
Neutral After Considering Items (Non-GAAP) 6 4
2 Note: Certain rows may not add due to
rounding.
1 Operating expense leverage is calculated
by subtracting gross profit growth from operating income
growth.
THE COCA-COLA
COMPANY AND SUBSIDIARIES
Reconciliation of
GAAP and Non-GAAP Financial Measures
(UNAUDITED) (In millions)
Purchases and
Issuances of Stock:
Year Ended
December 31, 2015
Year Ended
December 31, 2014
Reported (GAAP) Issuances of Stock $ 1,245 $ 1,532 Purchases
of Stock for Treasury (3,564 ) (4,162 ) Net Change in Stock
Issuance Receivables1 1 (14 ) Net Change in Treasury Stock
Payables2 18 38 Net Treasury Share Repurchases
(Non-GAAP) $ (2,300 ) $ (2,606 )
1 Represents the net change in receivables
related to employee stock options exercised but not settled prior
to the end of the year.
2 Represents the net change in payables
for treasury shares repurchased but not settled prior to the end of
the year.
About The Coca-Cola
Company
The Coca-Cola Company (NYSE: KO) is the world's largest beverage
company, refreshing consumers with more than 500 sparkling and
still brands. Led by Coca-Cola, one of the world's most valuable
and recognizable brands, our Company's portfolio features 20
billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola
Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del
Valle. Globally, we are the No. 1 provider of sparkling
beverages, ready-to-drink coffees, and juices and juice
drinks. Through the world's largest beverage distribution system,
consumers in more than 200 countries enjoy our beverages at a rate
of more than 1.9 billion servings a day. With an enduring
commitment to building sustainable communities, our Company is
focused on initiatives that reduce our environmental footprint,
support active, healthy living, create a safe, inclusive work
environment for our associates, and enhance the economic
development of the communities where we operate. Together with
our bottling partners, we rank among the world's top 10
private employers with more than 700,000 system
associates. For more information, visit Coca-Cola Journey
at www.coca-colacompany.com,
follow us on Twitter at twitter.com/CocaColaCo, visit our blog, Coca-Cola
Unbottled, at www.coca-colablog.com or find us on LinkedIn at
www.linkedin.com/company/the-coca-cola-company.
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 concerns;
water scarcity and poor quality; evolving consumer preferences;
increased competition and capabilities in the marketplace; product
safety and quality concerns; perceived negative health consequences
of certain ingredients, such as non-nutritive sweeteners and
biotechnology-derived substances, and of other substances present
in our beverage products or packaging materials; increased demand
for food products and decreased agricultural productivity; changes
in the retail landscape or the loss of key retail or foodservice
customers; an inability to expand operations in emerging and
developing markets; fluctuations in foreign currency exchange
rates; interest rate increases; an inability to maintain good
relationships with our bottling partners; a deterioration in our
bottling partners' financial condition; increases in income tax
rates, changes in income tax laws or unfavorable resolution of tax
matters; increased or new indirect taxes in the United States or in
other major markets; increased cost, disruption of supply or
shortage of energy or fuels; increased cost, disruption of supply
or shortage of ingredients, other raw materials or packaging
materials; changes in laws and regulations relating to beverage
containers and packaging; significant additional labeling or
warning requirements or limitations on the availability of our
products; an inability to protect our information systems against
service interruption, misappropriation of data or breaches of
security; unfavorable general economic conditions in the United
States; unfavorable economic and political conditions in
international markets; litigation or legal proceedings; adverse
weather conditions; climate change; damage to our brand image and
corporate reputation from negative publicity, even if unwarranted,
related to product safety or quality, human and workplace rights,
obesity or other issues; changes in, or failure to comply with, the
laws and regulations applicable to our products or our business
operations; changes in accounting standards; an inability to
achieve our overall long-term growth objectives; deterioration of
global credit market conditions; default by or failure of one or
more of our counterparty financial institutions; an inability to
timely implement our previously announced actions to reinvigorate
growth, or to realize the economic benefits we anticipate from
these actions; failure to realize a significant portion of the
anticipated benefits of our strategic relationships with Keurig
Green Mountain, Inc. and Monster Beverage Corporation; an inability
to renew collective bargaining agreements on satisfactory terms, or
we or our bottling partners experience strikes, work stoppages or
labor unrest; future impairment charges; multi-employer plan
withdrawal liabilities in the future; an inability to successfully
integrate and manage our Company-owned or -controlled bottling
operations; an inability to successfully manage the possible
negative consequences of our productivity initiatives; 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 for the year ended
December 31, 2014 and our subsequently filed Quarterly Reports on
Form 10-Q, 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160209005851/en/
The Coca-Cola CompanyInvestors and Analysts:Tim Leveridge,
+01-404-676-7563orMedia:Petro Kacur, +01-404-676-2683
Coca Cola (NYSE:KO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Coca Cola (NYSE:KO)
Historical Stock Chart
From Sep 2023 to Sep 2024