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Form 8-K COCA COLA CO For: Jul 27

July 27, 2016 7:13 AM EDT


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
July 27, 2016
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction
of incorporation)
001-02217
(Commission
File Number)
58-0628465
(IRS Employer
Identification No.)

One Coca-Cola Plaza
Atlanta, Georgia
(Address of principal executive offices)
 
30313
(Zip Code)

Registrant's telephone number, including area code: (404) 676-2121

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 





Item 2.02.     Results of Operations and Financial Condition.

Attached as Exhibit 99.1 is a copy of a press release of The Coca-Cola Company, dated July 27, 2016, reporting The Coca-Cola Company's financial results for the second quarter and year-to-date 2016. The information in this Item 2.02, including the Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01(d).    Financial Statements and Exhibits.

Exhibit No.
Description
Exhibit 99.1
Press Release of The Coca-Cola Company, dated July 27, 2016, reporting
The Coca-Cola Company's financial results for the second quarter and year-to-date 2016.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
 
THE COCA-COLA COMPANY
(REGISTRANT)
 
 
 
Date: July 27, 2016
By:
/s/ LARRY M. MARK
 
 
Larry M. Mark
Vice President and Controller






EXHIBIT INDEX

Exhibit No.
Description
Exhibit 99.1
Press Release of The Coca-Cola Company, dated July 27, 2016, reporting
The Coca-Cola Company's financial results for the second quarter and year-to-date 2016.




Contacts:
Investors and Analysts:
Tim Leveridge
T +01 404.676.7563

Media:
Petro Kacur
T +01 404.676.2683
The Coca-Cola Company
Global Public Affairs & Communications Department

P.O. Box 1734
Atlanta, GA 30301
THE COCA-COLA COMPANY REPORTS
SECOND QUARTER 2016 RESULTS

Reported net revenues declined 5% and organic revenues grew 3% in the quarter.
Reported EPS was $0.79 and comparable EPS was $0.60 in the quarter.
Global volume grew 1% year to date and was even in the quarter.
Global price/mix grew 3% in the quarter, reflecting continued effective pricing and packaging initiatives across key markets.
Reported operating margin expanded more than 390 basis points and comparable currency neutral operating margin expanded more than 140 basis points.
Gained global value share in nonalcoholic ready-to-drink beverages.
Full-year 2016 organic revenues now expected to grow 3%. Full-year comparable currency neutral income before taxes (structurally adjusted) outlook remains 6% to 8%.

ATLANTA, July 27, 2016 – The Coca-Cola Company today reported second quarter 2016 operating results. Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, “Despite challenging macroeconomic conditions, structural changes and foreign exchange headwinds which contributed to a 5% decline in reported revenues, we delivered 3% organic revenue growth, gained value share in total nonalcoholic ready-to-drink beverages, expanded our operating margins and grew profits in line with our expectations. Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina. These factors combined to put pressure on our volume and top-line performance in the quarter, especially where we own bottling




businesses. In these international operations where external headwinds have proven to be more severe than originally forecast, we are taking action by reassessing local market initiatives where needed and continuing our efforts in driving productivity.

“As we continue the transformation of our business, I am encouraged by our core business performance which grew ahead of our consolidated organic revenues in the quarter. We expect this to continue for the balance of the year as we remain confident in our segmented revenue growth strategy, our innovation pipeline, and efforts to increase and improve our advertising.


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SECOND QUARTER 2016 OPERATING REVIEW
TOTAL COMPANY
 
Percent Change
 
Second Quarter
 
YTD
Unit Case Volume
0
 
1
Concentrate Sales/Reported Volume
0
 
0
Price/Mix
3
 
2
Currency
(3)
 
(4)
Acquisitions, Divestitures and Structural Items, Net
(5)
 
(3)
Reported Net Revenues
(5)
 
(5)
Organic Revenues *
3
 
2
Reported Income Before Taxes
(1)
 
(2)
Comparable CN Income Before Taxes (Structurally Adjusted) *
10
 
10
*
Organic revenues 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.
Concentrate sales growth was in line with unit case volume growth in the quarter and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The positive price/mix in the quarter was driven by solid underlying pricing partially offset by 1 point of geographic mix. Acquisitions, divestitures and structural items in the quarter primarily include the impact of refranchised territories in North America, the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners as well as the impact of the brand transfer agreement associated with the closing of the transaction with Monster Beverage Corporation (“Monster”) in 2015.
We gained global volume and value share in sparkling beverages in the quarter. Value share grew ahead of volume share, emphasizing our focus on accelerating our revenue growth management strategies. Sparkling beverage volume was even year to date and declined 1% in the quarter primarily due to weakness in certain emerging markets.
We gained global volume and value share in still beverages in the quarter. Still beverage volume grew 4% year to date and 2% in the quarter. Volume growth in the quarter was driven by strong performance in most categories partially offset by a decline in juice and juice drinks primarily due to industry weakness in China.
The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 9% and structural impacts, partially offset by a 5% favorable

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impact due to comparability items. Also, income before taxes benefited from the impact of our productivity initiatives, a slightly favorable commodity pricing environment, the timing of expenses and an increase in equity income. The structural headwind on comparable currency neutral income before taxes was 4%.
The reported effective tax rate for the quarter was 19.5%. The underlying effective tax rate was 22.5%. 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 $0.79 and comparable EPS was $0.60 in the quarter. Items impacting comparability increased reported EPS by a net $0.19 and were primarily related to a noncash gain recognized in connection with the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners, partially offset by noncash charges related to refranchising territories in North America and costs associated with our previously announced productivity and restructuring initiatives.
Fluctuations in foreign currency exchange rates resulted in a headwind of 7 points, 9 points and 10 points on reported operating income, reported income before taxes and reported EPS, respectively, in the quarter. Fluctuations in foreign currency exchange rates resulted in a 6 point headwind on comparable operating income and an 11 point headwind on both comparable income before taxes and comparable EPS in the quarter.
Year-to-date cash from operations was $3.8 billion, down $1.3 billion due to the impact of contributions to our pension plans, fluctuations in foreign currency exchange rates, one less day in the first quarter and the deconsolidation of our German bottling operations.
Year-to-date purchases of stock for treasury were $2.2 billion. Net share repurchases totaled $1.1 billion.



4


EURASIA AND AFRICA
 
Percent Change
 
Second Quarter

YTD
Unit Case Volume
(1)
 
(1)
Concentrate Sales
0
 
(1)
Price/Mix
7
 
5
Currency
(10)
 
(11)
Acquisitions, Divestitures and Structural Items, Net
(3)
 
(3)
Reported Net Revenues
(6)
 
(10)
Organic Revenues *
7
 
5
Reported Income Before Taxes
(11)
 
(12)
Comparable CN Income Before Taxes *
0
 
(1)
*
Organic revenues 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.
Concentrate sales growth was slightly ahead of unit case volume growth in the quarter due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line. The positive price/mix in the quarter was primarily attributable to favorable pricing and product mix across several key markets, partially offset by unfavorable geographic mix. Acquisitions, divestitures and structural items in the quarter primarily reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015.
The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 11% and the unfavorable structural impact of the brand transfer agreement with Monster. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives and timing of expenses.
We gained value share in sparkling beverages in the quarter. Sparkling beverage volume was even and still beverage volume declined 4% in the quarter. Unit case volume performance in the quarter included low single-digit growth in both our Central, East & West Africa and Middle East & North Africa business units, offset by a high single-digit decline in our Russia, Ukraine & Belarus business unit and a mid single-digit decline in our Turkey, Caucasus & Central Asia business unit.

5


EUROPE
 
Percent Change
 
Second Quarter
 
YTD
Unit Case Volume
0
 
0
Concentrate Sales
(1)
 
(1)
Price/Mix
3
 
2
Currency
0
 
1
Acquisitions, Divestitures and Structural Items, Net
(4)
 
(3)
Reported Net Revenues
(2)
 
(1)
Organic Revenues *
2
 
1
Reported Income Before Taxes
(3)
 
(3)
Comparable CN Income Before Taxes *
(3)
 
(2)
*
Organic revenues 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.
Concentrate sales growth in the quarter was slightly behind unit case volume growth due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line after adjusting for one less day in the first quarter. The positive price/mix in the quarter reflects an increase in pricing and favorable product mix in key markets. Acquisitions, divestitures and structural items in the quarter reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015 as well as the impact of the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners.
The decline in reported income before taxes in the quarter was primarily driven by the unfavorable structural impact related to the brand transfer agreement with Monster and the impact of the deconsolidation of our German bottling operations. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives.
We gained value share in total nonalcoholic ready-to-drink (“NARTD”) beverages in the quarter. Sparkling beverage volume was even and still beverage volume grew 2% in the quarter. Unit case volume growth in key markets including Germany, Poland and Romania was offset by volume declines in France and Spain primarily driven by poor weather.


6


LATIN AMERICA
 
Percent Change
 
Second Quarter
 
YTD
Unit Case Volume
0
 
1
Concentrate Sales
1
 
1
Price/Mix
15
 
13
Currency
(20)
 
(22)
Acquisitions, Divestitures and Structural Items, Net
0
 
0
Reported Net Revenues
(4)
 
(8)
Organic Revenues *
16
 
14
Reported Income Before Taxes
(1)
 
(7)
Comparable CN Income Before Taxes *
27
 
19
*
Organic revenues 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.
Concentrate sales growth was slightly ahead of unit case volume growth in the quarter due to timing of concentrate shipments. For the year-to-date period, concentrate sales and unit case volume growth were in line. Positive price/mix was realized in each of our four business units in the quarter, particularly in Brazil and other higher inflationary markets within our South Latin and Latin Center business units.
The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 29%. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives and timing of expenses.
We gained value share in still beverages in the quarter. Sparkling beverage volume declined 2% in the quarter and still beverage volume grew 6%. Unit case volume performance in the quarter was driven by high single-digit growth in Mexico, offset by a high single-digit decline in both our Latin Center and South Latin business units and a low single-digit decline in Brazil.



7


NORTH AMERICA

Percent Change

Second Quarter
 
YTD
Unit Case Volume
1
 
1
Concentrate Sales
1
 
0
Price/Mix
2
 
3
Currency
0
 
0
Acquisitions, Divestitures and Structural Items, Net
(1)
 
(1)
Reported Net Revenues
2
 
2
Organic Revenues *
4
 
3
Reported Income Before Taxes
(1)
 
3
Comparable CN Income Before Taxes *
0
 
2
*
Organic revenues 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.
Concentrate sales growth was in line with unit case volume growth in the quarter and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The positive price/mix in the quarter reflects the successful continued implementation of our rational pricing strategy and our effective revenue management efforts. Acquisitions, divestitures and structural items in the quarter primarily reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015.
Reported income before taxes in the quarter includes an unfavorable structural impact of 4% primarily related to the brand transfer agreement associated with the closing of the transaction with Monster in 2015.
We gained value share in total NARTD beverages for the 25th 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. Sparkling beverage volume declined 1% in the quarter. Growth in Sprite, Fanta and energy drinks was offset by a decline in Trademark Coca-Cola. Still beverage volume growth of 3% in the quarter was driven by all key categories.



8


ASIA PACIFIC

Percent Change

Second Quarter
 
YTD
Unit Case Volume
1
 
3
Concentrate Sales
(2)
 
2
Price/Mix
0
 
(2)
Currency
1
 
(1)
Acquisitions, Divestitures and Structural Items, Net
(1)
 
(2)
Reported Net Revenues
(2)
 
(3)
Organic Revenues *
(2)
 
0
Reported Income Before Taxes
(1)
 
0
Comparable CN Income Before Taxes *
0
 
2
*
Organic revenues 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.
Concentrate sales growth trailed unit case volume growth in the quarter due to timing of concentrate shipments and was slightly behind unit case volume growth for the year-to-date period. After adjusting for one less day in the first quarter, concentrate sales and unit case volume growth were in line for the year-to-date period. The even price/mix in the quarter was primarily driven by favorable pricing and geographic mix, offset by negative product mix. Acquisitions, divestitures and structural items in the quarter reflect the unfavorable impact of the brand transfer agreement associated with the closing of the transaction with Monster in 2015 and a change in the funding arrangement with our bottlers in China.
The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 1 point. Also, income before taxes benefited in the quarter from the impact of our productivity initiatives and timing of expenses.
We gained value share in total NARTD beverages in the quarter. Sparkling beverage volume was even and still beverage volume grew 2% in the quarter. Unit case volume growth in the quarter included high single-digit growth in our ASEAN business unit, 4% growth in Japan and 3% growth in India, partially offset by a high single-digit decline in China.


9


BOTTLING INVESTMENTS

Percent Change

Second Quarter
 
YTD
Unit Case Volume
(13)
 
(9)
Reported Volume
(2)
 
(1)
Price/Mix
2
 
1
Currency
(1)
 
(2)
Acquisitions, Divestitures and Structural Items, Net
(11)
 
(6)
Reported Net Revenues
(12)
 
(8)
Organic Revenues *
0
 
0
Reported Income Before Taxes
(24)
 
Comparable CN Income Before Taxes *
11
 
21
*
Organic revenues 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 positive price/mix in the quarter reflects favorable pricing across several of our bottling operations and positive geographic mix given our China bottling operations’ weaker volume performance. Acquisitions, divestitures and structural items in the quarter reflect the impact of the refranchised North America bottling territories and the deconsolidation of our German bottling operations as a result of their being merged to create Coca-Cola European Partners.
The decline in reported income before taxes in the quarter was primarily driven by an unfavorable currency impact of 6%, an unfavorable impact due to comparability items and an unfavorable structural impact related to refranchised North America bottling territories and the deconsolidation of our German bottling operations. Also, income before taxes benefited from the impact of our productivity initiatives, a slightly favorable commodity pricing environment and increased equity income.
2016 OUTLOOK
Our 2016 outlook for organic revenues, comparable currency neutral income before taxes (structurally adjusted) and comparable EPS are non-GAAP financial measures that exclude or have otherwise been adjusted 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 these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and the exact timing of acquisitions and divestitures and/or structural changes throughout 2016. The unavailable information could have a significant impact on our full-year 2016 GAAP financial results.


10


The Company now expects organic revenues to be up 3% in 2016. The net impact of acquisitions, divestitures and structural items on net revenues is expected to be a 6 to 7 point headwind, and based on the current spot rates, currency is expected to be a 2 to 3 point headwind, including the impact of hedged positions for the full year.
The Company continues to expect comparable currency neutral income before taxes (structurally adjusted) to grow 6% to 8% in 2016, in line with our long-term target. The net impact of structural items is expected to be a 4 point headwind, and based on the current spot rates, currency is expected to be an 8 to 9 point headwind, including the impact of hedged positions for the full year.
Based on the above, the Company expects full-year comparable EPS to be down 4% to 7% versus prior year’s comparable EPS of $2.00.
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 third quarter of 2016, we estimate that based on the current spot rates, currency will be a 2 point headwind on comparable net revenues and a 2 to 3 point headwind on comparable income before taxes, including the impact of hedged positions. The net impact of structural items is expected to be a 3 point headwind on comparable income before taxes.
ITEMS IMPACTING COMPARABILITY    
For details on items impacting comparability in the quarter, 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 uses non-GAAP financial measures, including, but not limited to, organic revenues, comparable currency neutral income before taxes and comparable currency neutral earnings per share, in making financial, operating, compensation and planning decisions and in evaluating the Company's performance. Management believes that these non-GAAP financial measures provide users

11


with additional meaningful financial information that should be considered when assessing our ongoing 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. Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
"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 revenues" is a non-GAAP financial measure that excludes or has otherwise been adjusted for the impact of changes in foreign currency exchange rates and acquisitions, divestitures and structural items, as applicable. For details on these adjustments, refer to the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.
"Core business" represents the combined performance from the Eurasia and Africa, Europe, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment eliminations.

12


"Sparkling beverages" means NARTD beverages with carbonation, including carbonated energy drinks and waters.
"Still beverages" means nonalcoholic beverages without carbonation, including noncarbonated 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 2016 financial results were impacted by one less day, while fourth quarter financial results will be impacted by two additional 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 second quarter 2016 results today, July 27, 2016 at 9 a.m. EDT. 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.



13



THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
Three Months Ended
 
July 1, 2016

 
July 3, 2015

 
% Change1
Net Operating Revenues
$
11,539

 
$
12,156

 
(5
)
Cost of goods sold
4,471

 
4,748

 
(6
)
Gross Profit
7,068

 
7,408

 
(5
)
Selling, general and administrative expenses
3,912

 
4,204

 
(7
)
Other operating charges
297

 
669

 
(56
)
Operating Income
2,859

 
2,535

 
13

Interest income
164

 
149

 
10

Interest expense
162

 
128

 
27

Equity income (loss) — net
305

 
200

 
52

Other income (loss) — net
1,133

 
1,605

 
(29
)
Income Before Income Taxes
4,299

 
4,361

 
(1
)
Income taxes
839

 
1,250

 
(33
)
Consolidated Net Income
3,460

 
3,111

 
11

Less: Net income (loss) attributable to noncontrolling interests
12

 
3

 
445

Net Income Attributable to Shareowners of The Coca-Cola Company
$
3,448

 
$
3,108

 
11

Diluted Net Income Per Share2
$
0.79

 
$
0.71

 
12

Average Shares Outstanding — Diluted2
4,377

 
4,408

 
 
1 
Certain growth rates may not recalculate using the rounded dollar amounts provided.
2 
For the three months ended July 1, 2016 and July 3, 2015, basic net income per share was $0.80 for 2016 and $0.71 for 2015 based on average shares outstanding — basic of 4,323 million for 2016 and 4,355 million for 2015. 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.

14



THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
Six Months Ended
 
July 1, 2016

 
July 3, 2015

 
% Change1
Net Operating Revenues
$
21,821

 
$
22,867

 
(5
)
Cost of goods sold
8,540

 
8,851

 
(4
)
Gross Profit
13,281

 
14,016

 
(5
)
Selling, general and administrative expenses
7,673

 
8,283

 
(7
)
Other operating charges
608

 
902

 
(33
)
Operating Income
5,000

 
4,831

 
4

Interest income
308

 
304

 
1

Interest expense
303

 
575

 
(47
)
Equity income (loss) — net
397

 
202

 
97

Other income (loss) — net
791

 
1,580

 
(50
)
Income Before Income Taxes
6,193

 
6,342

 
(2
)
Income taxes
1,240

 
1,665

 
(25
)
Consolidated Net Income
4,953

 
4,677

 
6

Less: Net income (loss) attributable to noncontrolling interests
22

 
12

 
82

Net Income Attributable to Shareowners of The Coca-Cola Company
$
4,931

 
$
4,665

 
6

Diluted Net Income Per Share2
$
1.13

 
$
1.06

 
7

Average Shares Outstanding — Diluted2
4,379

 
4,415

 
 
1 
Certain growth rates may not recalculate using the rounded dollar amounts provided.
2 
For the six months ended July 1, 2016 and July 3, 2015, basic net income per share was $1.14 for 2016 and $1.07 for 2015 based on average shares outstanding — basic of 4,325 million for 2016 and 4,360 million for 2015. 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.

15



THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(UNAUDITED)
(In millions except par value)
 
 
 
 
 
July 1,
2016

 
December 31,
2015

ASSETS
Current Assets
 
 
 
Cash and cash equivalents
$
9,647

 
$
7,309

Short-term investments
11,755

 
8,322

Total Cash, Cash Equivalents and Short-Term Investments
21,402

 
15,631

Marketable securities
2,673

 
4,269

Trade accounts receivable, less allowances of $354 and $352, respectively
4,768

 
3,941

Inventories
3,005

 
2,902

Prepaid expenses and other assets
3,332

 
2,752

Assets held for sale
693

 
3,900

Total Current Assets
35,873

 
33,395

Equity Method Investments
16,215

 
12,318

Other Investments
1,284

 
3,470

Other Assets
4,370

 
4,110

Property, Plant and Equipment — net
12,663

 
12,571

Trademarks With Indefinite Lives
6,038

 
5,989

Bottlers' Franchise Rights With Indefinite Lives
5,616

 
6,000

Goodwill
11,204

 
11,289

Other Intangible Assets
831

 
854

Total Assets
$
94,094

 
$
89,996

 
 
 
 
LIABILITIES AND EQUITY
Current Liabilities
 
 
 
Accounts payable and accrued expenses
$
10,235

 
$
9,660

Loans and notes payable
13,901

 
13,129

Current maturities of long-term debt
4,895

 
2,676

Accrued income taxes
375

 
331

Liabilities held for sale
138

 
1,133

Total Current Liabilities
29,544

 
26,929

Long-Term Debt
29,252

 
28,311

Other Liabilities
3,963

 
4,301

Deferred Income Taxes
4,497

 
4,691

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
14,710

 
14,016

Reinvested earnings
66,921

 
65,018

Accumulated other comprehensive income (loss)
(10,153
)
 
(10,174
)
Treasury stock, at cost — 2,725 and 2,716 shares, respectively
(46,601
)
 
(45,066
)
Equity Attributable to Shareowners of The Coca-Cola Company
26,637

 
25,554

Equity Attributable to Noncontrolling Interests
201

 
210

Total Equity
26,838

 
25,764

Total Liabilities and Equity
$
94,094

 
$
89,996



16



THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(UNAUDITED)
(In millions)
 
 
 
 
 
Six Months Ended
 
July 1,
2016

 
July 3,
2015

Operating Activities
 
 
 
Consolidated net income
$
4,953

 
$
4,677

Depreciation and amortization
903

 
961

Stock-based compensation expense
119

 
117

Deferred income taxes
(178
)
 
643

Equity (income) loss — net of dividends
(224
)
 
(44
)
Foreign currency adjustments
118

 
(144
)
Significant (gains) losses on sales of assets — net
(762
)
 
(1,346
)
Other operating charges
210

 
609

Other items
(125
)
 
609

Net change in operating assets and liabilities
(1,194
)
 
(964
)
   Net cash provided by operating activities
3,820

 
5,118

Investing Activities
 
 
 
Purchases of investments
(9,045
)
 
(6,981
)
Proceeds from disposals of investments
9,518

 
6,316

Acquisitions of businesses, equity method investments and nonmarketable securities
(723
)
 
(2,284
)
Proceeds from disposals of businesses, equity method investments and
nonmarketable securities
420

 
413

Purchases of property, plant and equipment
(1,085
)
 
(1,114
)
Proceeds from disposals of property, plant and equipment
41

 
33

Other investing activities
(63
)
 
(139
)
   Net cash provided by (used in) investing activities
(937
)
 
(3,756
)
Financing Activities
 
 
 
Issuances of debt
15,947

 
24,878

Payments of debt
(12,750
)
 
(22,358
)
Issuances of stock
1,108

 
410

Purchases of stock for treasury
(2,156
)
 
(1,298
)
Dividends
(3,017
)
 
(2,877
)
Other financing activities
85

 
115

   Net cash provided by (used in) financing activities
(783
)
 
(1,130
)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
238

 
(385
)
Cash and Cash Equivalents
 
 
 
Net increase (decrease) during the period
2,338

 
(153
)
Balance at beginning of period
7,309

 
8,958

   Balance at end of period
$
9,647

 
$
8,805



17



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
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
Eurasia & Africa
$
621

 
$
658

 
(6
)
 
$
248

 
$
275

 
(10
)
 
$
256

 
$
287

 
(11
)
 
Europe
1,410

 
1,435

 
(2
)
 
808

 
836

 
(3
)
 
822

 
843

 
(3
)
 
Latin America
937

 
973

 
(4
)
 
512

 
525

 
(2
)
 
520

 
526

 
(1
)
 
North America
2,709

 
2,651

 
2

 
735

 
754

 
(3
)
 
745

 
752

 
(1
)
 
Asia Pacific
1,560

 
1,601

 
(2
)
 
758

 
761

 
0

 
760

 
766

 
(1
)
 
Bottling Investments
5,615

 
6,385

 
(12
)
 
216

 
164

 
31

 
269

 
353

 
(24
)
 
Corporate
63

 
25

 
149

 
(418
)
 
(780
)
 
47

 
927

 
834

 
11

 
Eliminations
(1,376
)
 
(1,572
)
 
13

 

 

 

 

 

 

 
Consolidated
$
11,539

 
$
12,156

 
(5
)
 
$
2,859

 
$
2,535

 
13

 
$
4,299

 
$
4,361

 
(1
)
 
Note:
Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
During the three months ended July 1, 2016, intersegment revenues were $11 million for Eurasia and Africa, $112 million for Europe, $16 million for Latin America, $1,032 million for North America, $159 million for Asia Pacific, $44 million for Bottling Investments and $2 million for Corporate. During the three months ended July 3, 2015, intersegment revenues were $7 million for Eurasia and Africa, $151 million for Europe, $18 million for Latin America, $1,158 million for North America, $188 million for Asia Pacific and $50 million for Bottling Investments.

18



THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)
 
Six Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Revenues 1
Operating Income (Loss)
Income (Loss) Before Income Taxes
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
July 1, 2016
July 3, 2015
% Fav. / (Unfav.)
Eurasia & Africa
$
1,167

 
$
1,296

 
(10
)
 
$
484

 
$
554

 
(13
)
 
$
502

 
$
573

 
(12
)
 
Europe
2,614

 
2,647

 
(1
)
 
1,499

 
1,552

 
(3
)
 
1,526

 
1,567

 
(3
)
 
Latin America
1,872

 
2,039

 
(8
)
 
1,035

 
1,103

 
(6
)
 
1,038

 
1,114

 
(7
)
 
North America
5,073

 
4,968

 
2

 
1,316

 
1,289

 
2

 
1,325

 
1,284

 
3

 
Asia Pacific
2,795

 
2,886

 
(3
)
 
1,309

 
1,305

 
0

 
1,314

 
1,314

 
0

 
Bottling Investments
10,907

 
11,916

 
(8
)
 
98

 
154

 
(36
)
 
(163
)
 
307

 

 
Corporate
48

 
65

 
(25
)
 
(741
)
 
(1,126
)
 
34

 
651

 
183

 
256

 
Eliminations
(2,655
)
 
(2,950
)
 
10

 

 

 

 

 

 

 
Consolidated
$
21,821

 
$
22,867

 
(5
)
 
$
5,000

 
$
4,831

 
4

 
$
6,193

 
$
6,342

 
(2
)
 
Note:
Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
During the six months ended July 1, 2016, intersegment revenues were $17 million for Eurasia and Africa, $247 million for Europe, $34 million for Latin America, $1,975 million for North America, $292 million for Asia Pacific, $85 million for Bottling Investments and $5 million for Corporate. During the six months ended July 3, 2015, intersegment revenues were $7 million for Eurasia and Africa, $295 million for Europe, $37 million for Latin America, $2,199 million for North America, $317 million for Asia Pacific and $95 million for Bottling Investments.





19



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 uses non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company's performance. Management believes that certain non-GAAP financial measures provide users with additional meaningful financial information that should be considered when assessing our ongoing 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, compensation and planning decisions; and evaluates the Company's ongoing performance. Items such as charges, gains and accounting changes which are viewed by management as impacting only the current period or the comparable period, but not both, or as pertaining to different and unrelated underlying activities or events across comparable periods, are generally considered "items impacting comparability". In addition, we provide the impact that changes in foreign currency exchange rates had on our financial results ("currency neutral") defined below.
Asset Impairments and Restructuring
Restructuring
During the three and six months ended July 1, 2016, the Company recorded charges of $41 million and $240 million, respectively. The Company also recorded charges of $94 million and $129 million during the three and six months ended July 3, 2015, respectively. These charges were related to the integration of our German bottling operations.
Productivity and Reinvestment
During the three and six months ended July 1, 2016, the Company recorded charges of $65 million and $128 million, respectively, related to our productivity and reinvestment initiatives. The Company also recorded charges of $92 million and $182 million during the three and six months ended July 3, 2015, respectively. These productivity and reinvestment initiatives are focused on four key areas: restructuring the Company's global supply chain; implementing zero-based work, an evolution of zero-based budget principles across the organization; streamlining and simplifying the Company's operating model; and further driving increased discipline and efficiency in direct marketing investments. The savings realized from the program will enable the Company to fund marketing initiatives and innovation required to deliver sustainable net revenue growth. The savings will also support margin expansion and increased returns on invested capital over time.
Equity Investees
During the three and six months ended July 1, 2016, the Company recorded net charges of $18 million and $21 million, respectively. During the three and six months ended July 3, 2015, the Company recorded net charges of $9 million and $82 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 and six months ended July 1, 2016, the Company recorded charges of $52 million and $97 million, respectively, related to costs incurred to refranchise our North America bottling territories. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout the North America bottling system.
During the three and six months ended July 1, 2016, the Company recorded charges of $32 million and $33 million, respectively, for noncapitalizable transaction costs associated with pending and closed transactions, primarily related to the deconsolidation of our German bottling operations discussed below.

20



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Transaction Gains/Losses (continued)
During the three and six months ended July 1, 2016, the Company recognized a noncash gain of $1,292 million, net of transaction costs described above, as a result of the deconsolidation of our German bottling operations. On May 29, 2016, the Company merged its German bottling operations with Coca-Cola Enterprises, Inc. and Coca-Cola Iberian Partners, S.A.U., to create Coca-Cola European Partners ("CCEP") in exchange for an equity investment in CCEP.
During the three and six months ended July 1, 2016, the Company incurred noncash losses of $199 million and $568 million, respectively. The Company also incurred noncash losses of $12 million and $33 million during the three and six months ended July 3, 2015, respectively. These losses were primarily due to the derecognition of intangible assets relating to the refranchising of territories in North America to certain of our unconsolidated bottling partners.
During the six months ended July 1, 2016, the Company recorded a net gain of $18 million as a result of the disposal of our shares in Keurig Green Mountain, Inc.
During the three and six months ended July 3, 2015, the Company recorded a net gain of $1,402 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. As a result, the Company recognized an impairment charge of $380 million in the line item other operating charges in our condensed consolidated statement of income upon the closing of the transaction with Monster, primarily related to the discontinuation of the energy products in the glacéau portfolio.
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 six months ended July 3, 2015, calculated based on the final option price. Also during the six months ended July 3, 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.
Other Items
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 ended July 1, 2016 and July 3, 2015, the impact of the Company's adjustment related to our economic hedging activities resulted in decreases of $95 million and $56 million, respectively, to our non-GAAP income before income taxes. During the six months ended July 1, 2016 and July 3, 2015, the net impact of the Company's adjustment related to our economic hedging activities described above resulted in decreases of $71 million and $11 million, respectively, to our non-GAAP income before income taxes.


21



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
Other Items (continued)
Donation to The Coca-Cola Foundation
During the three and six months ended July 1, 2016, the Company recorded a charge of $100 million. During the three and six months ended July 3, 2015, the Company recorded a charge of $100 million. These charges were due to contributions the Company made to The Coca-Cola Foundation.
Early Extinguishment of Long-Term Debt
During the six months ended July 3, 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 six months ended July 3, 2015, the Company recorded net charges of $135 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.
Other
During the three and six months ended July 1, 2016, the Company recorded other charges of $7 million and $10 million, respectively. During the six months ended July 3, 2015, the Company recorded other charges of $1 million. These charges were primarily related to tax litigation expense as well as 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.
Certain Tax Matters
During the three and six months ended July 1, 2016, the Company recorded net tax charges of $83 million and $77 million, respectively, related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. During the three months ended July 3, 2015, the Company recorded a net tax charge of $16 million 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.


22



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
ORGANIC REVENUES
Organic revenues is a non-GAAP financial measure that excludes or has otherwise been adjusted for the impact of changes in foreign currency exchange rates and acquisitions, divestitures and structural items, as applicable. The adjustments related to acquisitions, divestitures and structural items for the three and six months ended July 1, 2016 and July 3, 2015 consisted of the structural changes discussed below. Additionally, during the three and six months ended July 1, 2016, organic revenues were adjusted, both on a consolidated basis and for our Asia Pacific operating segment, for the sales of the Company's newly acquired plant-based protein beverages in China.
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 2016, the Company deconsolidated our German bottling operations as a result of their being merged to create CCEP. As a result of the merger transaction, the Company now owns an equity method investment in CCEP. Accordingly, the impact of the deconsolidation and new equity method investment has been included as a structural change (a component of acquisitions and divestitures) in our analysis of net operating revenues and income (loss) before income taxes on a consolidated basis as well as for our Europe and Bottling Investments operating segments. During 2016, the Company also changed our funding arrangement with our bottling partners in China, which resulted in a reduction in net revenues with an offsetting reduction in direct marketing expense. In 2016 and 2015, the Company refranchised territories in North America to certain of its unconsolidated bottling partners. Additionally, in 2015, the Company 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. 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. In addition, for non-Company-owned and licensed beverage products sold in the refranchised territories in North America for which the Company no longer reports unit case volume, we have eliminated the unit case volume from the base year when calculating 2016 versus 2015 volume growth rates on a consolidated basis as well as for the North America and Bottling Investments operating segments.
2016 OUTLOOK
Our 2016 outlook for organic revenue, comparable currency neutral income before taxes (structurally adjusted) and comparable EPS are non-GAAP financial measures that exclude or have otherwise been adjusted 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 EPS to our full-year 2016 projected reported EPS without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and the exact timing of acquisitions and divestitures and/or structural changes throughout 2016. The unavailable information could have a significant impact on our full-year 2016 GAAP financial results.








23



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 1, 2016
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
Gross margin
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
Operating margin
Reported (GAAP)
 
$
11,539

 
$
4,471

 
$
7,068

 
61.3
%
 
 
$
3,912

 
$
297

 
$
2,859

 
24.8
%
 
Items Impacting Comparability:
 

 

 

 

 
 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 
 

 
(41
)
 
41

 

 
Productivity & Reinvestment
 

 

 

 

 
 

 
(65
)
 
65

 

 
Equity Investees
 

 

 

 

 
 

 

 

 

 
Transaction Gains/Losses
 

 

 

 

 
 

 
(84
)
 
84

 

 
Other Items
 
(15
)
 
82

 
(97
)
 

 
 
9

 
(107
)
 
1

 

 
Certain Tax Matters
 

 

 

 

 
 

 

 

 

 
After Considering Items (Non-GAAP)
 
$
11,524

 
$
4,553

 
$
6,971

 
60.5
%
 
 
$
3,921

 
$

 
$
3,050

 
26.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 3, 2015
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
Gross margin
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
Operating margin
Reported (GAAP)
 
$
12,156

 
$
4,748

 
$
7,408

 
60.9
%
 
 
$
4,204

 
$
669

 
$
2,535

 
20.9
%
 
Items Impacting Comparability:
 

 

 

 

 
 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 
 

 
(94
)
 
94

 

 
Productivity & Reinvestment
 

 

 

 

 
 

 
(92
)
 
92

 

 
Equity Investees
 

 

 

 

 
 

 

 

 

 
Transaction Gains/Losses
 

 

 

 

 
 

 
(383
)
 
383

 

 
Other Items
 
(7
)
 
24

 
(31
)
 

 
 
19

 
(100
)
 
50

 

 
Certain Tax Matters
 

 

 

 

 
 

 

 

 

 
After Considering Items (Non-GAAP)
 
$
12,149

 
$
4,772

 
$
7,377

 
60.7
%
 
 
$
4,223

 
$

 
$
3,154

 
26.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
 
 
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
 
 
% Change — Reported (GAAP)
 
(5)
 
(6)
 
(5)
 
 
 
 
(7)
 
(56)
 
13
 
 
 
% Currency Impact
 
(3)
 
(1)
 
(3)
 
 
 
 
(2)
 
 
(7)
 
 
 
% Change — Currency Neutral Reported
 
(3)
 
(5)
 
(1)
 
 
 
 
(5)
 
 
20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items
(Non-GAAP)
 
(5)
 
(5)
 
(6)
 
 
 
 
(7)
 
 
(3)
 
 
 
% Currency Impact After Considering Items (Non-GAAP)
 
(3)
 
(1)
 
(4)
 
 
 
 
(2)
 
 
(6)
 
 
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
(3)
 
(4)
 
(2)
 
 
 
 
(5)
 
 
3
 
 
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

24



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 1, 2016
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes1
 
Effective
tax rate
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share2
Reported (GAAP)
 
$
162

 
$
305

 
$
1,133

 
$
4,299

 
$
839

 
19.5
%
 
 
$
12

 
$
3,448

 
$
0.79

 
Items Impacting Comparability:
 

 

 

 

 

 

 
 

 

 

 
Asset Impairments/Restructuring
 

 

 

 
41

 

 

 
 

 
41

 
0.01

 
Productivity & Reinvestment
 

 

 

 
65

 
24

 

 
 

 
41

 
0.01

 
Equity Investees
 

 
18

 

 
18

 
4

 

 
 

 
14

 

 
Transaction Gains/Losses
 

 

 
(1,124
)
 
(1,040
)
 
(26
)
 

 
 

 
(1,014
)
 
(0.23
)
 
Other Items
 

 

 
11

 
12

 
6

 

 
 

 
6

 

 
Certain Tax Matters
 

 

 

 

 
(83
)
 

 
 

 
83

 
0.02

 
After Considering Items (Non-GAAP)
 
$
162

 
$
323

 
$
20

 
$
3,395

 
$
764

 
22.5
%
 
 
$
12

 
$
2,619

 
$
0.60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 3, 2015
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes1
 
Effective
tax rate
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share3
Reported (GAAP)
 
$
128

 
$
200

 
$
1,605

 
$
4,361

 
$
1,250

 
28.7
%
 
 
$
3

 
$
3,108

 
$
0.71

 
Items Impacting Comparability:
 

 

 

 

 

 

 
 

 

 

 
Asset Impairments/Restructuring
 

 

 

 
94

 

 

 
 

 
94

 
0.02

 
Productivity & Reinvestment
 

 

 

 
92

 
33

 

 
 

 
59

 
0.01

 
Equity Investees
 

 
9

 

 
9

 

 

 
 

 
9

 

 
Transaction Gains/Losses
 

 

 
(1,390
)
 
(1,007
)
 
(474
)
 

 
 

 
(533
)
 
(0.12
)
 
Other Items
 

 

 
(6
)
 
44

 
16

 

 
 

 
28

 
0.01

 
Certain Tax Matters
 

 

 

 

 
(16
)
 

 
 

 
16

 

 
After Considering Items (Non-GAAP)
 
$
128

 
$
209

 
$
209

 
$
3,593

 
$
809

 
22.5
%
 
 
$
3

 
$
2,781

 
$
0.63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes
 
 
 
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share
% Change — Reported (GAAP)
 
27
 
52
 
(29)
 
(1)
 
(33)
 
 
 
 
445
 
11
 
12
 
% Change — After Considering Items (Non-GAAP)
 
27
 
54
 
(90)
 
(6)
 
(6)
 
 
 
 
436
 
(6)
 
(5)
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability with the exception of certain tax matters previously discussed.
2 
4,377 million average shares outstanding — diluted
3 
4,408 million average shares outstanding — diluted


25



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
Gross margin
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
Operating margin
Reported (GAAP)
 
$
21,821

 
$
8,540

 
$
13,281

 
60.9
%
 
 
$
7,673

 
$
608

 
$
5,000

 
22.9
%
 
Items Impacting Comparability:
 

 

 

 

 
 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 
 

 
(240
)
 
240

 

 
Productivity & Reinvestment
 

 

 

 

 
 

 
(128
)
 
128

 

 
Equity Investees
 

 

 

 

 
 

 

 

 

 
Transaction Gains/Losses
 

 

 

 

 
 

 
(130
)
 
130

 

 
Other Items
 
32

 
130

 
(98
)
 

 
 
13

 
(110
)
 
(1
)
 

 
Certain Tax Matters
 

 

 

 

 
 

 

 

 

 
After Considering Items (Non-GAAP)
 
$
21,853

 
$
8,670

 
$
13,183

 
60.3
%
 
 
$
7,686

 
$

 
$
5,497

 
25.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 3, 2015
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
Gross margin
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
Operating margin
Reported (GAAP)
 
$
22,867

 
$
8,851

 
$
14,016

 
61.3
%
 
 
$
8,283

 
$
902

 
$
4,831

 
21.1
%
 
Items Impacting Comparability:
 

 

 

 

 
 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 
 

 
(129
)
 
129

 

 
Productivity & Reinvestment
 

 

 

 

 
 

 
(182
)
 
182

 

 
Equity Investees
 

 

 

 

 
 

 

 

 

 
Transaction Gains/Losses
 

 

 

 

 
 

 
(383
)
 
383

 

 
Other Items
 
(15
)
 
27

 
(42
)
 

 
 
29

 
(208
)
 
137

 

 
Certain Tax Matters
 

 

 

 

 
 

 

 

 

 
After Considering Items (Non-GAAP)
 
$
22,852

 
$
8,878

 
$
13,974

 
61.1
%
 
 
$
8,312

 
$

 
$
5,662

 
24.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues
 
Cost of goods sold
 
Gross profit
 
 
 
 
Selling, general and administrative expenses
 
Other operating charges
 
Operating income
 
 
 
% Change — Reported (GAAP)
 
(5)
 
(4)
 
(5)
 
 
 
 
(7)
 
(33)
 
4
 
 
 
% Currency Impact
 
(4)
 
(2)
 
(5)
 
 
 
 
(3)
 
 
(10)
 
 
 
% Change — Currency Neutral Reported
 
(1)
 
(2)
 
0
 
 
 
 
(5)
 
 
13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items
(Non-GAAP)
 
(4)
 
(2)
 
(6)
 
 
 
 
(8)
 
 
(3)
 
 
 
% Currency Impact After Considering Items (Non-GAAP)
 
(3)
 
(2)
 
(5)
 
 
 
 
(3)
 
 
(8)
 
 
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
(1)
 
(1)
 
(1)
 
 
 
 
(5)
 
 
5
 
 
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

26



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes1
 
Effective
tax rate
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share2
Reported (GAAP)
 
$
303

 
$
397

 
$
791

 
$
6,193

 
$
1,240

 
20.0
%
 
 
$
22

 
$
4,931

 
$
1.13

 
Items Impacting Comparability:
 

 

 

 

 

 

 
 

 

 

 
Asset Impairments/Restructuring
 

 

 

 
240

 

 

 
 

 
240

 
0.05

 
Productivity & Reinvestment
 

 

 

 
128

 
45

 

 
 

 
83

 
0.02

 
Equity Investees
 

 
21

 

 
21

 
4

 

 
 

 
17

 

 
Transaction Gains/Losses
 

 

 
(773
)
 
(643
)
 
117

 

 
 

 
(760
)
 
(0.17
)
 
Other Items
 

 

 
40

 
39

 
16

 

 
 

 
23

 
0.01

 
Certain Tax Matters
 

 

 

 

 
(77
)
 

 
 

 
77

 
0.02

 
After Considering Items (Non-GAAP)
 
$
303

 
$
418

 
$
58

 
$
5,978

 
$
1,345

 
22.5
%
 
 
$
22

 
$
4,611

 
$
1.05

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 3, 2015
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes1
 
Effective
tax rate
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share3
Reported (GAAP)
 
$
575

 
$
202

 
$
1,580

 
$
6,342

 
$
1,665

 
26.3
%
 
 
$
12

 
$
4,665

 
$
1.06

 
Items Impacting Comparability:
 

 

 

 

 

 

 
 

 

 

 
Asset Impairments/Restructuring
 

 

 

 
129

 

 

 
 

 
129

 
0.03

 
Productivity & Reinvestment
 

 

 

 
182

 
75

 

 
 

 
107

 
0.02

 
Equity Investees
 

 
82

 

 
82

 
6

 

 
 

 
76

 
0.02

 
Transaction Gains/Losses
 

 

 
(1,344
)
 
(961
)
 
(464
)
 

 
 

 
(497
)
 
(0.11
)
 
Other Items
 
(320
)
 

 
88

 
545

 
140

 

 
 

 
405

 
0.09

 
Certain Tax Matters
 

 

 

 

 

 

 
 

 

 

 
After Considering Items (Non-GAAP)
 
$
255

 
$
284

 
$
324

 
$
6,319

 
$
1,422

 
22.5
%
 
 
$
12

 
$
4,885

 
$
1.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
Equity income (loss) — net
 
Other income (loss) — net
 
Income before income taxes
 
Income
taxes
 
 
 
 
Net income (loss) attributable to noncontrolling interests
 
Net income attributable to shareowners of The Coca-Cola Company
 
Diluted net income
per share
% Change — Reported (GAAP)
 
(47)
 
97
 
(50)
 
(2)
 
(25)
 
 
 
 
82
 
6
 
7
 
% Change — After Considering Items (Non-GAAP)
 
19
 
47
 
(82)
 
(5)
 
(5)
 
 
 
 
81
 
(6)
 
(5)
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability with the exception of certain tax matters previously discussed.
2 
4,379 million average shares outstanding — diluted
3 
4,415 million average shares outstanding — diluted


27



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 July 1, 2016
 
 
Income before income taxes
 
Diluted net income per share
 
% Change — Reported (GAAP)
 
(1)
 
12
 
% Currency Impact
 
(9)
 
(10)
 
% Change — Currency Neutral Reported
 
8
 
22
 
% Structural Impact
 
(3)
 
 
% Change — Currency Neutral Reported and Adjusted for Structural Impact
 
12
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(6)
 
(5)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(11)
 
(11)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
6
 
6
 
% Structural Impact After Considering Items (Non-GAAP)
 
(4)
 
 
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP)
 
10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Income before income taxes
 
Diluted net income per share
 
% Change — Reported (GAAP)
 
(2)
 
7
 
% Currency Impact
 
(12)
 
(13)
 
% Change — Currency Neutral Reported
 
10
 
20
 
% Structural Impact
 
(3)
 
 
% Change — Currency Neutral Reported and Adjusted for Structural Impact
 
13
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(5)
 
(5)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(12)
 
(12)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
6
 
7
 
% Structural Impact After Considering Items (Non-GAAP)
 
(3)
 
 
% Change — Currency Neutral After Considering Items and Adjusted for Structural Impact (Non-GAAP)
 
10
 
 
 
 
 
 
 
 
Note:
Certain columns may not add due to rounding.


28



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 July 1, 2016
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
Reported (GAAP)
 
$
621

$
1,410

$
937

$
2,709

$
1,560

$
5,615

$
63

$
(1,376
)
$
11,539

 
Items Impacting Comparability:
 









 
Asset Impairments/Restructuring
 









 
Productivity & Reinvestment
 









 
Equity Investees
 









 
Transaction Gains/Losses
 









 
Other Items
 



(6
)


(9
)

(15
)
 
After Considering Items (Non-GAAP)
 
$
621

$
1,410

$
937

$
2,703

$
1,560

$
5,615

$
54

$
(1,376
)
$
11,524

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 3, 2015
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
Reported (GAAP)
 
$
658

$
1,435

$
973

$
2,651

$
1,601

$
6,385

$
25

$
(1,572
)
$
12,156

 
Items Impacting Comparability:
 









 
Asset Impairments/Restructuring
 









 
Productivity & Reinvestment
 









 
Equity Investees
 









 
Transaction Gains/Losses
 









 
Other Items
 



(11
)


4


(7
)
 
After Considering Items (Non-GAAP)
 
$
658

$
1,435

$
973

$
2,640

$
1,601

$
6,385

$
29

$
(1,572
)
$
12,149

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
% Change — Reported (GAAP)
 
(6)
(2)
(4)
2
(2)
(12)
149
13
(5)
 
% Currency Impact
 
(10)
0
(20)
0
1
(1)
70
(3)
 
% Change — Currency Neutral Reported
 
4
(2)
16
2
(3)
(11)
79
(3)
 
% Acquisitions, Divestitures and Structural Items
 
(3)
(4)
0
(1)
(1)
(11)
30
(5)
 
% Change — Organic Revenues (Non-GAAP)
 
7
2
16
4
(2)
0
49
3
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(6)
(2)
(4)
2
(2)
(12)
79
(5)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(10)
0
(20)
0
1
(1)
12
(3)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
4
(2)
16
2
(3)
(11)
66
(3)
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

29



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
 
 
 
 
 
 
Net Operating Revenues by Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
Reported (GAAP)
 
$
1,167

$
2,614

$
1,872

$
5,073

$
2,795

$
10,907

$
48

$
(2,655
)
$
21,821

 
Items Impacting Comparability:
 









 
Asset Impairments/Restructuring
 









 
Productivity & Reinvestment
 









 
Equity Investees
 









 
Transaction Gains/Losses
 









 
Other Items
 



(8
)


40


32

 
After Considering Items (Non-GAAP)
 
$
1,167

$
2,614

$
1,872

$
5,065

$
2,795

$
10,907

$
88

$
(2,655
)
$
21,853

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 3, 2015
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
Reported (GAAP)
 
$
1,296

$
2,647

$
2,039

$
4,968

$
2,886

$
11,916

$
65

$
(2,950
)
$
22,867

 
Items Impacting Comparability:
 









 
Asset Impairments/Restructuring
 









 
Productivity & Reinvestment
 









 
Equity Investees
 









 
Transaction Gains/Losses
 









 
Other Items
 



(17
)


2


(15
)
 
After Considering Items (Non-GAAP)
 
$
1,296

$
2,647

$
2,039

$
4,951

$
2,886

$
11,916

$
67

$
(2,950
)
$
22,852

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Eliminations
Consolidated
 
% Change — Reported (GAAP)
 
(10)
(1)
(8)
2
(3)
(8)
(25)
10
(5)
 
% Currency Impact
 
(11)
1
(22)
0
(1)
(2)
(55)
(4)
 
% Change — Currency Neutral Reported
 
2
(2)
14
2
(2)
(7)
29
(1)
 
% Acquisitions, Divestitures and Structural Items
 
(3)
(3)
0
(1)
(2)
(6)
24
(3)
 
% Change — Organic Revenues (Non-GAAP)
 
5
1
14
3
0
0
6
2
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(10)
(1)
(8)
2
(3)
(8)
33
(4)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(11)
1
(22)
0
(1)
(2)
4
(3)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
2
(2)
14
2
(2)
(7)
28
(1)
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

30



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
Core Net Operating Revenues: 1
 
 
 
 
 
 
 
 
Three Months Ended July 1, 2016
Reported (GAAP) Net Operating Revenues
 
$
11,539

 
Bottling Investments Net Operating Revenues
 
(5,615
)
 
Consolidated Eliminations
 
1,376

 
Intersegment Core Net Operating Revenue Eliminations
 
(7
)
 
Core Net Operating Revenues (Non-GAAP)
 
7,293

 
Items Impacting Comparability:
 

 
Asset Impairments/Restructuring
 

 
Productivity & Reinvestment
 

 
Equity Investees
 

 
Transaction Gains/Losses
 

 
Other Items
 
(15
)
 
Core Net Operating Revenues After Considering Items (Non-GAAP)
 
$
7,278

 
 
 
 
 
 
Three Months Ended July 3, 2015
Reported (GAAP) Net Operating Revenues
 
$
12,156

 
Bottling Investments Net Operating Revenues
 
(6,385
)
 
Consolidated Eliminations
 
1,572

 
Intersegment Core Net Operating Revenue Eliminations
 
(4
)
 
Core Net Operating Revenues (Non-GAAP)
 
7,339

 
Items Impacting Comparability:
 

 
Asset Impairments/Restructuring
 

 
Productivity & Reinvestment
 

 
Equity Investees
 

 
Transaction Gains/Losses
 

 
Other Items
 
(7
)
 
Core Net Operating Revenues After Considering Items (Non-GAAP)
 
$
7,332

 
 
 
 
 
 
 
 
 
% Change — Reported (GAAP) Net Operating Revenues
 
(5)
 
% Change — Core Net Operating Revenues (Non-GAAP)
 
(1)
 
% Currency Impact
 
(3)
 
% Change — Core Currency Neutral Reported (Non-GAAP)
 
2
 
% Acquisitions, Divestitures and Structural Items
 
(2)
 
% Change — Core Organic Revenues (Non-GAAP)2
 
4
 
 
 
 
 
% Change — Core After Considering Items (Non-GAAP)
 
(1)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(3)
 
% Change — Core Currency Neutral After Considering Items (Non-GAAP)
 
3
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
Core net operating revenues included the net operating revenues from the Eurasia and Africa, Europe, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $7 million and $4 million during the three months ended July 1, 2016 and July 3, 2015, respectively.
2 
Core organic revenue growth included 4 points of positive price/mix.

31



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
Core Net Operating Revenues: 1
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
Reported (GAAP) Net Operating Revenues
 
$
21,821

 
Bottling Investments Net Operating Revenues
 
(10,907
)
 
Consolidated Eliminations
 
2,655

 
Intersegment Core Net Operating Revenue Eliminations
 
(13
)
 
Core Net Operating Revenues (Non-GAAP)
 
13,556

 
Items Impacting Comparability:
 

 
Asset Impairments/Restructuring
 

 
Productivity & Reinvestment
 

 
Equity Investees
 

 
Transaction Gains/Losses
 

 
Other Items
 
32

 
Core Net Operating Revenues After Considering Items (Non-GAAP)
 
$
13,588

 
 
 
 
 
 
Six Months Ended July 3, 2015
Reported (GAAP) Net Operating Revenues
 
$
22,867

 
Bottling Investments Net Operating Revenues
 
(11,916
)
 
Consolidated Eliminations
 
2,950

 
Intersegment Core Net Operating Revenue Eliminations
 
(7
)
 
Core Net Operating Revenues (Non-GAAP)
 
13,894

 
Items Impacting Comparability:
 

 
Asset Impairments/Restructuring
 

 
Productivity & Reinvestment
 

 
Equity Investees
 

 
Transaction Gains/Losses
 

 
Other Items
 
(15
)
 
Core Net Operating Revenues After Considering Items (Non-GAAP)
 
$
13,879

 
 
 
 
 
 
 
 
 
% Change — Reported (GAAP) Net Operating Revenues
 
(5)
 
% Change — Core Net Operating Revenues (Non-GAAP)
 
(2)
 
% Currency Impact
 
(4)
 
% Change — Core Currency Neutral Reported (Non-GAAP)
 
2
 
% Acquisitions, Divestitures and Structural Items
 
(1)
 
% Change — Core Organic Revenues (Non-GAAP)2
 
4
 
 
 
 
 
% Change — Core After Considering Items (Non-GAAP)
 
(2)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(4)
 
% Change — Core Currency Neutral After Considering Items (Non-GAAP)
 
2
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1 
Core net operating revenues included the net operating revenues from the Eurasia and Africa, Europe, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $13 million and $7 million during the six months ended July 1, 2016 and July 3, 2015, respectively.
2 
Core organic revenue growth included 3 points of positive price/mix.


32



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 July 1, 2016
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
Reported (GAAP)
 
$
248

$
808

$
512

$
735

$
758

$
216

$
(418
)
$
2,859

 
Items Impacting Comparability:
 








 
Asset Impairments/Restructuring
 





41


41

 
Productivity & Reinvestment
 
1


(1
)
27


17

21

65

 
Equity Investees
 








 
Transaction Gains/Losses
 





60

24

84

 
Other Items
 



(26
)

(63
)
90

1

 
After Considering Items (Non-GAAP)
 
$
249

$
808

$
511

$
736

$
758

$
271

$
(283
)
$
3,050

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 3, 2015
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
Reported (GAAP)
 
$
275

$
836

$
525

$
754

$
761

$
164

$
(780
)
$
2,535

 
Items Impacting Comparability:
 








 
Asset Impairments/Restructuring
 





94


94

 
Productivity & Reinvestment
 
3


3

31

2

49

4

92

 
Equity Investees
 








 
Transaction Gains/Losses
 






383

383

 
Other Items
 



(40
)

(12
)
102

50

 
After Considering Items (Non-GAAP)
 
$
278

$
836

$
528

$
745

$
763

$
295

$
(291
)
$
3,154

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
% Change — Reported (GAAP)
 
(10)
(3)
(2)
(3)
0
31
47
13
 
% Currency Impact
 
(12)
0
(29)
0
(1)
(4)
3
(7)
 
% Change — Currency Neutral Reported
 
2
(4)
27
(3)
1
35
44
20
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(10)
(3)
(3)
(1)
(1)
(9)
3
(3)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(12)
0
(29)
0
(1)
(1)
2
(6)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
2
(4)
26
(1)
1
(7)
0
3
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

33



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
 
 
 
 
 
Operating Income (Loss) by Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
Reported (GAAP)
 
$
484

$
1,499

$
1,035

$
1,316

$
1,309

$
98

$
(741
)
$
5,000

 
Items Impacting Comparability:
 








 
Asset Impairments/Restructuring
 





240


240

 
Productivity & Reinvestment
 

4

(1
)
58

1

38

28

128

 
Equity Investees
 








 
Transaction Gains/Losses
 





105

25

130

 
Other Items
 



(42
)

(105
)
146

(1
)
 
After Considering Items (Non-GAAP)
 
$
484

$
1,503

$
1,034

$
1,332

$
1,310

$
376

$
(542
)
$
5,497

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 3, 2015
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
Reported (GAAP)
 
$
554

$
1,552

$
1,103

$
1,289

$
1,305

$
154

$
(1,126
)
$
4,831

 
Items Impacting Comparability:
 








 
Asset Impairments/Restructuring
 





129


129

 
Productivity & Reinvestment
 
15

(11
)
3

73

(3
)
81

24

182

 
Equity Investees
 








 
Transaction Gains/Losses
 






383

383

 
Other Items
 


33

(50
)
2

(23
)
175

137

 
After Considering Items (Non-GAAP)
 
$
569

$
1,541

$
1,139

$
1,312

$
1,304

$
341

$
(544
)
$
5,662

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
Europe
Latin America
North America
Asia Pacific
Bottling Investments
Corporate
Consolidated
 
% Change — Reported (GAAP)
 
(13)
(3)
(6)
2
0
(36)
34
4
 
% Currency Impact
 
(14)
0
(30)
1
(2)
0
(3)
(10)
 
% Change — Currency Neutral Reported
 
1
(4)
24
1
3
(37)
37
13
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(15)
(2)
(9)
2
0
10
0
(3)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(13)
0
(29)
1
(2)
(2)
0
(8)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
(1)
(3)
20
1
3
12
0
5
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.


34



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 July 1, 2016
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
Reported (GAAP)
 
$
256

 
$
822

 
$
520

 
$
745

 
$
760

 
$
269

 
$
927

 
$
4,299

 
Items Impacting Comparability:
 

 

 

 

 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 

 
41

 

 
41

 
Productivity & Reinvestment
 
1

 

 
(1
)
 
27

 

 
17

 
21

 
65

 
Equity Investees
 

 

 

 

 

 
15

 
3

 
18

 
Transaction Gains/Losses
 

 

 

 

 

 
259

 
(1,299
)
 
(1,040
)
 
Other Items
 

 

 

 
(26
)
 

 
(63
)
 
101

 
12

 
After Considering Items (Non-GAAP)
 
$
257

 
$
822

 
$
519

 
$
746

 
$
760

 
$
538

 
$
(247
)
 
$
3,395

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended July 3, 2015
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
Reported (GAAP)
 
$
287

 
$
843

 
$
526

 
$
752

 
$
766

 
$
353

 
$
834

 
$
4,361

 
Items Impacting Comparability:
 

 

 

 

 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 

 
94

 

 
94

 
Productivity & Reinvestment
 
3

 

 
3

 
31

 
2

 
49

 
4

 
92

 
Equity Investees
 

 
5

 

 

 

 
4

 

 
9

 
Transaction Gains/Losses
 

 

 

 

 

 
12

 
(1,019
)
 
(1,007
)
 
Other Items
 

 

 

 
(40
)
 

 
(12
)
 
96

 
44

 
After Considering Items (Non-GAAP)
 
$
290

 
$
848

 
$
529

 
$
743

 
$
768

 
$
500

 
$
(85
)
 
$
3,593

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
% Change — Reported (GAAP)
 
(11)
 
(3)
 
(1)
 
(1)
 
(1)
 
(24)
 
11
 
(1)
 
% Currency Impact
 
(11)
 
0
 
(29)
 
0
 
(1)
 
(6)
 
(22)
 
(9)
 
% Change — Currency Neutral Reported
 
0
 
(3)
 
28
 
(1)
 
0
 
(18)
 
34
 
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items
(Non-GAAP)
 
(11)
 
(3)
 
(2)
 
0
 
(1)
 
7
 
(187)
 
(6)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(11)
 
0
 
(29)
 
0
 
(1)
 
(4)
 
(225)
 
(11)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
0
 
(3)
 
27
 
0
 
0
 
11
 
38
 
6
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

35



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Income Taxes by Segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
Reported (GAAP)
 
$
502

 
$
1,526

 
$
1,038

 
$
1,325

 
$
1,314

 
$
(163
)
 
$
651

 
$
6,193

 
Items Impacting Comparability:
 

 

 

 

 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 

 
240

 

 
240

 
Productivity & Reinvestment
 

 
4

 
(1
)
 
58

 
1

 
38

 
28

 
128

 
Equity Investees
 

 

 

 

 

 
18

 
3

 
21

 
Transaction Gains/Losses
 

 

 

 

 

 
673

 
(1,316
)
 
(643
)
 
Other Items
 

 

 

 
(42
)
 

 
(105
)
 
186

 
39

 
After Considering Items (Non-GAAP)
 
$
502

 
$
1,530

 
$
1,037

 
$
1,341

 
$
1,315

 
$
701

 
$
(448
)
 
$
5,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 3, 2015
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
Reported (GAAP)
 
$
573

 
$
1,567

 
$
1,114

 
$
1,284

 
$
1,314

 
$
307

 
$
183

 
$
6,342

 
Items Impacting Comparability:
 

 

 

 

 

 

 

 

 
Asset Impairments/Restructuring
 

 

 

 

 

 
129

 

 
129

 
Productivity & Reinvestment
 
15

 
(11
)
 
3

 
73

 
(3
)
 
81

 
24

 
182

 
Equity Investees
 

 
6

 

 

 

 
76

 

 
82

 
Transaction Gains/Losses
 

 

 

 

 

 
33

 
(994
)
 
(961
)
 
Other Items
 

 

 
33

 
(50
)
 
2

 
(23
)
 
583

 
545

 
After Considering Items (Non-GAAP)
 
$
588

 
$
1,562

 
$
1,150

 
$
1,307

 
$
1,313

 
$
603

 
$
(204
)
 
$
6,319

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Eurasia & Africa
 
Europe
 
Latin America
 
North America
 
Asia Pacific
 
Bottling Investments
 
Corporate
 
Consolidated
 
% Change — Reported (GAAP)
 
(12)
 
(3)
 
(7)
 
3
 
0
 
 
256
 
(2)
 
% Currency Impact
 
(13)
 
0
 
(30)
 
1
 
(2)
 
 
(171)
 
(12)
 
% Change — Currency Neutral Reported
 
1
 
(3)
 
23
 
3
 
2
 
 
428
 
10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% Change — After Considering Items
(Non-GAAP)
 
(15)
 
(2)
 
(10)
 
3
 
0
 
16
 
(120)
 
(5)
 
% Currency Impact After Considering Items (Non-GAAP)
 
(13)
 
0
 
(29)
 
1
 
(2)
 
(5)
 
(136)
 
(12)
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
(1)
 
(2)
 
19
 
2
 
2
 
21
 
16
 
6
 
Note:
Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

36



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
 
 
 
 
 
 
 
 
Operating Expense Leverage:
 
 
 
 
 
 
 
 
Three Months Ended July 1, 2016
 
 
Operating income
 
Gross profit
 
Operating expense leverage1
 
% Change — Reported (GAAP)
 
13
 
(5)
 
17
 
% Change — Currency Neutral Reported
 
20
 
(1)
 
21
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(3)
 
(6)
 
2
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
3
 
(2)
 
5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Operating income
 
Gross profit
 
Operating expense leverage1
 
% Change — Reported (GAAP)
 
4
 
(5)
 
9
 
% Change — Currency Neutral Reported
 
13
 
0
 
13
 
 
 
 
 
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(3)
 
(6)
 
3
 
% Change — Currency Neutral After Considering Items (Non-GAAP)
 
5
 
(1)
 
6
 
Note:
Certain rows may not add due to rounding.
1Operating expense leverage is calculated by subtracting gross profit growth from operating income growth.
Operating Margin:
 
 
 
 
Three Months Ended July 1, 2016
Three Months Ended July 3, 2015
Basis Point Growth (Decline)
Reported (GAAP)
24.78
 %
20.85
 %
393

Impact on Operating Margin of Items Impacting Comparability (Non-GAAP)
(1.68
)%
(5.10
)%


Operating Margin After Considering Items (Non-GAAP)
26.46
 %
25.95
 %
51

Impact on Operating Margin of Currency After Considering Items (Non-GAAP)
(0.92
)%
0.00
 %

Currency Neutral Operating Margin After Considering Items (Non-GAAP)
27.38
 %
25.95
 %
143

 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
Six Months Ended July 3, 2015
Basis Point Growth (Decline)
Reported (GAAP)
22.91
 %
21.13
 %
178

Impact on Operating Margin of Items Impacting Comparability (Non-GAAP)
(2.24
)%
(3.65
)%


Operating Margin After Considering Items (Non-GAAP)
25.15
 %
24.78
 %
37

Impact on Operating Margin of Currency After Considering Items (Non-GAAP)
(1.02
)%
0.00
 %

Currency Neutral Operating Margin After Considering Items (Non-GAAP)
26.17
 %
24.78
 %
139





37



THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
 
 
 
 
 
 
 
Purchases and Issuances of Stock:
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Six Months Ended July 3, 2015
 
Reported (GAAP)
 
 
 
 
 
 
Issuances of Stock
 
$
1,108

 
 
$
410

 
Purchases of Stock for Treasury
 
(2,156
)
 
 
(1,298
)
 
Net Change in Stock Issuance Receivables1
 
3

 
 
(3
)
 
Net Change in Treasury Stock Payables2
 
(34
)
 
 
15

 
Net Treasury Share Repurchases (Non-GAAP)
 
$
(1,079
)
 
 
$
(876
)
 
1 
Represents the net change in receivables related to employee stock options exercised but not settled prior to the end of the period.
2 
Represents the net change in payables for treasury shares repurchased but not settled prior to the end of the period.
Consolidated Cash from Operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended July 1, 2016
 
 
Six Months Ended July 3, 2015
 
 
 
Net Cash Provided by
Operating Activities
 
 
Net Cash Provided by
Operating Activities
 
Reported (GAAP)
 
$
3,820

 
 
$
5,118

 
Items Impacting Comparability:
 

 
 

 
Cash Payments for Pension Plan Contributions
 
471

 
 

 
After Considering Items (Non-GAAP)
 
$
4,291

 
 
$
5,118

 
 
 
 
 
 
 
 
 
 
Net Cash Provided by
Operating Activities
 
 
 
 
% Change — Reported (GAAP)
 
(25)
 
 
 
 
% Change — After Considering Items (Non-GAAP)
 
(16)
 
 
 
 
Note:
Certain growth rates may not recalculate using the rounded dollar amounts provided.





38



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 and more than 3,800 beverage choices. Led by Coca-Cola, one of the world's most valuable and recognizable brands, our Company's portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. These brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system, we are the No. 1 provider of both sparkling and still beverages.  More than 1.9 billion servings of our beverages are enjoyed by consumers in more than 200 countries each day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, 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; an inability to be successful in our innovation activities; 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 one or more 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 marketing or sale 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; failure to adequately protect, or disputes relating to, trademarks, formulae and other intellectual property rights; 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 relationship with 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 our refranchising activities; an inability to successfully manage the possible negative consequences of our productivity initiatives; an inability to attract or retain a highly skilled workforce; 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, 2015 and our subsequently filed Quarterly Report 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.                        
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