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Form 8-K COCA-COLA ENTERPRISES, For: Jul 30

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July 30, 2015 7:35 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 30, 2015
  
COCA-COLA ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
Delaware
 
001-34874
27-2197395
(State or other jurisdiction
of incorporation)
 
(Commission
File No.)
(IRS Employer
Identification No.)
2500 Windy Ridge Parkway, Atlanta, Georgia 30339
(Address of principal executive offices, including zip code)
(678) 260-3000
(Registrant's telephone number, including area code)
 
 
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:
 ¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


1




 
Item 2.02.
Results of Operations and Financial Conditions
The Company issued a press release on July 30, 2015, reporting its second-quarter 2015 results and providing guidance on its full-year 2015 earnings outlook.  The press release is attached as exhibit 99.1.

The information in this Item 2.02 is being furnished herewith and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
(a) Not Applicable.
(b) Not Applicable.
(c) Not Applicable.
(d) Exhibits


EXHIBIT
NUMBER         DESCRIPTION
99.1             Press Release dated July 30, 2015.




2





SIGNATURE
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 hereunto duly authorized.
 

 
COCA-COLA ENTERPRISES, INC.

 
 
(Registrant)

Date: July 30, 2015

By:
/s/ Suzanne N. Forlidas
 
Name:
Suzanne N. Forlidas
 
Title:
Vice President, Secretary and Deputy General Counsel
 
 
 








3




EXHIBIT LIST

EXHIBIT
NUMBER        DESCRIPTION
99.1             Press Release dated July 30, 2015.



4


CONTACTS:
Investor Relations
Media Relations
 
Thor Erickson
Fred Roselli
 
+1 (678) 260-3110
+1 (678) 260-3421

  
COCA-COLA ENTERPRISES, INC. REPORTS SECOND-QUARTER 2015
RESULTS, AFFIRMS FULL-YEAR EARNINGS OUTLOOK

•
Second-quarter diluted earnings per share were 75 cents on a reported basis or 79 cents on a comparable basis, including a negative currency translation impact of 18 cents.

•
Net sales were $1.9 billion, down 17½ percent on a reported basis or down 2 percent on a currency-neutral basis; volume declined 1 percent.

•
Reported operating income was $275 million, down 7 percent; comparable operating income was $289 million, down 15 percent or up 2 percent on a currency-neutral basis.

•
CCE affirms its full-year guidance for 2015, including comparable and currency-neutral diluted earnings per share growth at the upper end of the range of 6 percent to 8 percent, with slightly positive net sales and operating income growth.

ATLANTA, July 30, 2015 - Coca-Cola Enterprises, Inc. (NYSE/Euronext Paris: CCE) today reported second-quarter 2015 operating income of $275 million or $289 million on a comparable basis. In the quarter, diluted earnings per share were 75 cents on a reported basis or 79 cents on a comparable basis. Currency translation had a negative impact of 18 cents on comparable diluted earnings per share.
In the second-quarter 2015, net sales totaled $1.9 billion, down 17½ percent from the same quarter a year ago. On a currency-neutral basis, net sales declined 2 percent.
“The consumer environment across our territories continues to limit retail value growth, including the nonalcoholic ready-to-drink category,” said John F. Brock,

Reconciliations of reported (GAAP) to comparable (non-GAAP) information and other non-GAAP measures used by management in managing the business are detailed on pages the following pages of this news release.

Page 2 of 14

chairman and chief executive officer. “We are managing each element of our business to maximize the value of our brands, to sustain high levels of customer service, and to improve our growth outlook.
“We are now into the key summer selling season, and our people are working diligently and effectively to utilize the strengths of our summer marketing campaigns, such as the Rugby World Cup, and our brand and package innovation initiatives to drive value growth.
“These efforts support a business-wide focus on achieving our most important goal: continuing to build shareowner value.”
Operating Review
Total second-quarter volume declined 1 percent, impacted by the challenging retail environment and strong prior year growth of 3½ percent. Sparkling brands declined 2½ percent. Coca-Cola trademark declined 3 percent, after cycling prior year growth of 4 percent, and as benefits from Coca-Cola Life and low single-digit growth in Coca-Cola Zero partially offset declines in other Coca-Cola brands. Energy brands grew more than 15 percent, driven primarily by Monster. Still brands grew 7 percent, with growth in Capri-Sun and the introduction of smartwater in Great Britain. Volume in both Great Britain and continental Europe declined 1 percent.
Second-quarter net pricing per case declined 1 percent, and cost of sales per case declined 3 percent, creating gross margin improvement. Operating expenses were up 1 percent. These figures are comparable and currency neutral.
“At every level of our company, we are focused on innovation, including building value from newer brands such as Coca-Cola Life, smartwater, and Finley, and expanding distribution of existing brands such as Capri-Sun and Monster,” said Hubert Patricot, executive vice president and president, European Group.
“In addition, we continue to roll out our One Brand strategy, which links each of our Coca-Cola trademark products by reinforcing the message of one unified Coca-Cola and highlighting each product’s unique consumer proposition. We believe this strategy helps consumers make more informed choices, which ultimately helps us to drive increasing value for our customers and our shareowners.”
Full-Year 2015 Outlook
For 2015, CCE continues to expect diluted earnings per share to grow at the upper end of the range of 6 percent to 8 percent on a comparable and currency-neutral basis. Based on recent rates, currency translation would negatively impact full-year 2015 diluted earnings per share by approximately 18 percent.
Net sales and operating income are each expected to achieve slightly positive growth on a comparable and currency-neutral basis.
The company expects 2015 free cash flow in a range of $600 million to $650 million including the expected negative impact of currency translation based on recent rates. Capital expenditures are expected to be approximately $325 million. Weighted average cost of debt is expected to be approximately 3 percent, and the comparable effective tax rate for 2015 is expected to be in a range of 27 percent to 28 percent.
CCE expects to repurchase approximately $600 million of its shares in 2015. Through the end of the second quarter, the company repurchased approximately $500 million of its shares. These plans may be adjusted depending on economic, operating, or other factors, including acquisition opportunities.

Page 3 of 14

Conference Call
CCE will host a conference call with investors and analysts today at 10 a.m. EDT. The call can be accessed through the company’s website at www.cokecce.com.
About CCE
    Coca-Cola Enterprises, Inc. is the leading Western European marketer, producer, and distributor of nonalcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers. CCE is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. CCE operates with a local focus and has 17 manufacturing sites across Europe, where the company manufactures nearly 90 percent of its products in the markets in which they are consumed. Sustainability is core to CCE’s business, and the company has been recognized by leading organizations in North America and Europe for its progress in water use reduction, carbon footprint reduction, and recycling initiatives. For more information about CCE, please visit www.cokecce.com and follow the company on Twitter at @cokecce.
# # #


Forward-Looking Statements

Included in this news release are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this news release should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission (“SEC”), including our most recent Form 10-K and other SEC filings.

Page 4 of 13




COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; in millions, except per share data)


 
Second Quarter
 
First Six Months
 
2015
 
2014
 
2015
 
2014
Net sales
$
1,928

 
$
2,333

 
$
3,559

 
$
4,203

Cost of sales
1,223

 
1,487

 
2,286

 
2,707

Gross profit
705

 
846

 
1,273

 
1,496

Selling, delivery, and administrative expenses
430

 
551

 
840

 
1,017

Operating income
275

 
295

 
433

 
479

Interest expense, net
31

 
30

 
61

 
58

Other nonoperating (expense) income
(1
)
 
1

 
1

 
—

Income before income taxes
243

 
266

 
373

 
421

Income tax expense
67

 
68

 
101

 
108

Net income
$
176

 
$
198

 
$
272

 
$
313

Basic earnings per share
$
0.76

 
$
0.80

 
$
1.17

 
$
1.24

Diluted earnings per share
$
0.75

 
$
0.78

 
$
1.15

 
$
1.22

Dividends declared per share
$
0.28

 
$
0.25

 
$
0.56

 
$
0.50

Basic weighted average shares outstanding
231

 
249

 
233

 
252

Diluted weighted average shares outstanding
235

 
254

 
237

 
257




Page 5 of 14

                                            

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited; in millions)


 
 
Second Quarter
 
First Six Months
 
 
2015
 
2014
 
2015
 
2014
Net income
 
$
176

 
$
198

 
$
272

 
$
313

Components of other comprehensive income (loss):
 
 
 
 
 
 
 
 
Currency translations
 
 
 
 
 
 
 
 
    Pretax activity, net
 
99

 
13

 
(180
)
 
24

    Tax effect
 
—

 
—

 
—

 
—

Currency translations, net of tax
 
99

 
13

 
(180
)
 
24

Net investment hedges
 
 
 
 
 
 
 
 
    Pretax activity, net
 
(29
)
 
18

 
123

 
17

    Tax effect
 
10

 
(6
)
 
(43
)
 
(6
)
Net investment hedges, net of tax
 
(19
)
 
12

 
80

 
11

Cash flow hedges
 
 
 
 
 
 
 
 
    Pretax activity, net
 
(2
)
 
(3
)
 
(4
)
 
(6
)
    Tax effect
 
—

 
—

 
—

 
1

Cash flow hedges, net of tax
 
(2
)
 
(3
)
 
(4
)
 
(5
)
Pension plan adjustments
 
 
 
 
 
 
 
 
    Pretax activity, net
 
7

 
7

 
14

 
13

    Tax effect
 
(1
)
 
(2
)
 
(3
)
 
(3
)
Pension plan adjustments, net of tax
 
6

 
5

 
11

 
10

Other comprehensive income (loss), net of tax
 
84

 
27

 
(93
)
 
40

Comprehensive income
 
$
260

 
$
225

 
$
179

 
$
353




Page 6 of 14

                                            
    
COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)


 
July 3,
2015
 
December 31,
2014
ASSETS
 
 
 
Current:
 
 
 
Cash and cash equivalents
$
418

 
$
223

Trade accounts receivable
1,637

 
1,514

Amounts receivable from The Coca-Cola Company
63

 
67

Inventories
411

 
388

Other current assets
326

 
268

Total current assets
2,855

 
2,460

Property, plant, and equipment, net
2,008

 
2,101

Franchise license intangible assets, net
3,532

 
3,641

Goodwill
94

 
101

Other noncurrent assets
217

 
240

Total assets
$
8,706

 
$
8,543

LIABILITIES
 
 
 
Current:
 
 
 
Accounts payable and accrued expenses
$
1,931

 
$
1,872

Amounts payable to The Coca-Cola Company
116

 
104

Current portion of debt
772

 
632

Total current liabilities
2,819

 
2,608

Debt, less current portion
3,712

 
3,320

Other noncurrent liabilities
206

 
207

Noncurrent deferred income tax liabilities
956

 
977

Total liabilities
7,693

 
7,112

SHAREOWNERS’ EQUITY
 
 
 
Common stock
3

 
3

Additional paid-in capital
3,996

 
3,958

Reinvested earnings
2,133

 
1,991

Accumulated other comprehensive loss
(807
)
 
(714
)
Common stock in treasury, at cost
(4,312
)
 
(3,807
)
Total shareowners’ equity
1,013

 
1,431

Total liabilities and shareowners’ equity
$
8,706

 
$
8,543





Page 7 of 14

                                            

COCA-COLA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)


 
First Six Months
 
2015
 
2014
Cash Flows from Operating Activities:
 
 
 
Net income
$
272

 
$
313

Adjustments to reconcile net income to net cash derived from operating activities:
 
 
 
Depreciation and amortization
138

 
153

Share-based compensation expense
16

 
15

Deferred income tax expense
12

 
13

Pension expense less than contributions
(5
)
 
(4
)
Net changes in assets and liabilities
(72
)
 
(277
)
Net cash derived from operating activities
361

 
213

Cash Flows from Investing Activities:
 
 
 
Capital asset investments
(183
)
 
(156
)
Capital asset disposals
—

 
26

       Other investing activities, net
(13
)
 
—

Net cash used in investing activities
(196
)
 
(130
)
Cash Flows from Financing Activities:
 
 
 
Net change in commercial paper
143

 
412

Issuances of debt
527

 
347

Payments on debt
(6
)
 
(108
)
Shares repurchased under share repurchase programs
(507
)
 
(588
)
Dividend payments on common stock
(130
)
 
(125
)
Other financing activities, net
16

 
(7
)
Net cash derived from (used in) financing activities
43

 
(69
)
Net effect of currency exchange rate changes on cash and cash equivalents
(13
)
 
(1
)
Net Change in Cash and Cash Equivalents
195

 
13

Cash and Cash Equivalents at Beginning of Period
223

 
343

Cash and Cash Equivalents at End of Period
$
418

 
$
356





Page 8 of 14

                                            

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP (a)
(Unaudited; in millions, except per share data which is calculated prior to rounding)

 
 
Second-Quarter 2015
 
 
Cost of sales
Selling, delivery, and administrative expenses
Operating income
Income tax expense
Net income
Diluted earnings per share
Reported (GAAP) (b)
$1,223
$430
$275
$67
$176
$0.75

Items Impacting Comparability:
 
 
 
 
 
 

Mark-to-market effects (c)
(12
)
2

10

2

8

0.03


Restructuring charges (d)
—

(4
)
4

1

3

0.01

Comparable (non-GAAP)
$1,211
$428
$289
$70
$187
$0.79
 
 
 
 Diluted Weighted Average Shares Outstanding
 
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second-Quarter 2014
 
 
Cost of sales
Selling, delivery, and administrative expenses
Operating income
Income tax expense
Net income
Diluted earnings per share
Reported (GAAP) (b)
$1,487
$551
$295
$68
$198
$0.78

Items Impacting Comparability:
 
 
 
 
 
 

Mark-to-market effects (c)
7

1

(8
)
(3
)
(5
)
(0.02
)

Restructuring charges (d)
—

(54
)
54

18

36

0.14

Comparable (non-GAAP)
$1,494
$498
$341
$83
$229
$0.90
 
 
 
 Diluted Weighted Average Shares Outstanding
 
254


___________________________
(a)
These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b)
As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c)
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d)
Amounts represent nonrecurring restructuring charges.







Page 9 of 14

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP (a)
(Unaudited; in millions, except per share data which is calculated prior to rounding)

 
 
First Six Months 2015
 
 
Cost of sales
Selling, delivery, and administrative expenses
Operating income
Income tax expense
Net income
Diluted earnings per share
Reported (GAAP) (b)
$2,286
$840
$433
$101
$272
$1.15

Items Impacting Comparability:







Mark-to-market effects (c)
(12
)
4

8

2

6

0.02


Restructuring charges (d)
—

(13
)
13

3

10

0.04

Comparable (non-GAAP)
$2,274
$831
$454
$106
$288
$1.21
 
 
 
 Diluted Weighted Average Shares Outstanding
 
237

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Six Months 2014
 
 
Cost of sales
Selling, delivery, and administrative expenses
Operating income
Income tax expense
Net income
Diluted earnings per share
Reported (GAAP) (b)
$2,707
$1,017
$479
$108
$313
$1.22

Items Impacting Comparability:







Mark-to-market effects (c)
6

—

(6
)
(2
)
(4
)
(0.02
)

Restructuring charges (d)
—

(62
)
62

21

41

0.16

Comparable (non-GAAP)
$2,713
$955
$535
$127
$350
$1.36
 
 

 Diluted Weighted Average Shares Outstanding
 
257


___________________________
(a)
These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b)
As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c)
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d)
Amounts represent nonrecurring restructuring charges.














                                            



Page 10 of 14

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT INCOME (a)
(Unaudited; in millions)

 
 
Second-Quarter 2015
 
 
Europe
Corporate
Operating income
Reported (GAAP) (b)
$324
$(49)
$275
 
Items Impacting Comparability:
 
 
 
 
Mark-to-market effects (c)
—

10

10

 
Restructuring charges (d)
4

—

4

Comparable (non-GAAP)
$328
$(39)
$289
 
 
 
 
 
 
 
Second-Quarter 2014
 
 
Europe
Corporate
Operating income
Reported (GAAP) (b)
$321
$(26)
$295
 
Items Impacting Comparability:
 
 
 
 
Mark-to-market effects (c)
—

(8
)
(8
)
 
Restructuring charges (d)
54

—

54

Comparable (non-GAAP)
$375
$(34)
$341
 
 
 
 
 
 
 
 
 
 
 
 
First Six Months 2015
 
 
Europe
Corporate
Operating income
Reported (GAAP) (b)
$514
$(81)
$433
 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

8

8

 
Restructuring Charges (d)
13

—

13

Comparable (non-GAAP)
$527
$(73)
$454
 
 
 
 
 
 
 
First Six Months 2014
 
 
Europe
Corporate
Operating income
Reported (GAAP) (b)
$545
$(66)
$479
 
Items Impacting Comparability:
 
 
 
 
Mark-to-Market Effects (c)
—

(6
)
(6
)
 
Restructuring Charges (d)
62

—

62

Comparable (non-GAAP)
$607
$(72)
$535

___________________________
(a)
These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability.
(b)
As reflected in CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c)
Amounts represent the net out-of-period mark-to-market impact of non-designated commodity hedges.
(d)
Amounts represent nonrecurring restructuring charges.




Page 11 of 14



COCA-COLA ENTERPRISES, INC.
CURRENCY IMPACT ON OPERATING MEASURES (a)
(Unaudited; percentages rounded to the nearest 0.5 percent)

 
% Change vs. Prior Year
 
GAAP (b)
non-GAAP (c)
Second-Quarter 2015
Reported
Currency
impact on reported
Reported
currency-neutral
Comparable
Currency
impact on comparable
Comparable
currency-neutral
Net sales
(17.5
)%
(15.5
)%
(2.0
)%
(17.5
)%
(15.5
)%
(2.0
)%
Selling, delivery, and administrative expenses
(22.0
)
(14.0
)
(8.0
)
(14.0
)
(15.0
)
1.0

Operating income
(7.0
)
(19.5
)
12.5

(15.0
)
(17.0
)
2.0

Diluted earnings per share
(4.0
)
(20.0
)
16.0

(12.0
)
(20.0
)
8.0

 
 
 
 
 
 
 
Second-Quarter 2014
 
 
 
 
 
 
Net sales
8.0
 %
5.5
 %
2.5
 %
8.0
 %
5.5
 %
2.5
 %
Selling, delivery, and administrative expenses
14.5

5.0

9.5

11.5

5.5

6.0

Operating income
8.5

7.5

1.0

8.5

6.5

2.0

Diluted earnings per share
18.0

8.0

10.0

16.5

7.0

9.5

 
 
 
 
 
 
 
First Six Months 2015
 
 
 
 
 
 
Net sales
(15.5
)%
(16.0
)%
0.5
 %
(15.5
)%
(16.0
)%
0.5
 %
Selling, delivery, and administrative expenses
(17.5
)
(14.0
)
(3.5
)
(13.0
)
(15.0
)
2.0

Operating income
(9.5
)
(20.0
)
10.5

(15.0
)
(18.0
)
3.0

Diluted earnings per share
(6.0
)
(20.5
)
14.5

(11.0
)
(21.5
)
10.5

 
 
 
 
 
 
 
First Six Months 2014
 
 
 
 
 
 
Net sales
5.0
 %
4.5
 %
0.5
 %
5.0
 %
4.5
 %
0.5
 %
Selling, delivery, and administrative expenses
1.5

4.0

(2.5
)
5.5

4.5

1.0

Operating income
25.0

8.5

16.5

8.0

6.0

2.0

Diluted earnings per share
40.5

10.0

30.5

17.5

7.5

10.0

 
 
 
 
 
 
 

___________________________
(a)
Currency impact is calculated by converting current year results at prior year exchange rates.
(b)
Calculated based on CCE's U.S. GAAP Condensed Consolidated Financial Statements.
(c)
These non-GAAP measures are provided to allow investors to more clearly evaluate our operating performance and business trends. Management uses this information to review results excluding items that are not necessarily indicative of ongoing results. The adjusting items are based on established defined terms and thresholds and represent all material items management considered for year-over-year comparability. See the Reconciliation of GAAP to non-GAAP tables in this release for a list of all items impacting comparability.


Page 12 of 14

                                        

COCA-COLA ENTERPRISES, INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited; in millions, except percentages which are rounded to the nearest 0.5 percent)

 
 
 
Second-Quarter
 
First Six Months
 
 
 
% Change vs. Prior Year
 
% Change vs. Prior Year
 
 
 
2015
2014
 
2015
2014
Net Sales Per Case
 
 
 
 
 
 
Change in net sales per case
 
(16.5
)%
4.5
 %
 
(17.0
)%
4.5
 %
Impact of excluding post mix, non-trade, and other
 
—

1.0

 
(0.5
)
0.5

Impact of currency exchange rate changes
 
15.5

(5.5
)
 
16.0

(4.5
)
Currency-Neutral Bottle and Can Net Pricing Per Case (a)
 
(1.0
)%
—
 %
 
(1.5
)%
0.5
 %
 
 
 
 
 
 
 
 
Cost of Sales Per Case
 
 
 
 
 
 
Change in cost of sales per case
 
(17.0
)%
2.5
 %
 
(17.5
)%
3.0
 %
Impact of excluding post mix, non-trade, and other
 
(1.5
)
1.5

 
(1.0
)
1.0

Impact of currency exchange rate changes
 
15.5

(5.0
)
 
16.0

(4.5
)
Currency-Neutral Bottle and Can Cost of Sales Per Case (a)
 
(3.0
)%
(1.0
)%
 
(2.5
)%
(0.5
)%
 
 
 
 
 
 
 
 
Physical Case Bottle and Can Volume
 
 
 
 
 
 
Change in volume
 
(1.0
)%
3.5
 %
 
2.5
 %
0.5
 %
Impact of selling day shift
 
—

—

 
(2.5
)
0.5

Comparable Bottle and Can Volume (b)
 
(1.0
)%
3.5
 %
 
—
 %
1.0
 %
 
 
 
 
 
 
 
 
 
 
 
First Six Months
 
 
 
Reconciliation of Free Cash Flow (c)
 
2015
2014
 
 
 
Net cash derived from operating activities
 
$
361

$
213

 
 
 
Less: capital asset investments
 
(183
)
(156
)
 
 
 
Add: capital asset disposals
 
—

26

 
 
 
Free Cash Flow
 
$
178

$
83

 
 
 
 
 
 
 
 
 
 
 
 
 
 
July 3,
December 31,
 
 
 
Reconciliation of Net Debt (d)
 
2015
2014
 
 
 
Current portion of debt
 
$
772

$
632

 
 
 
Debt, less current portion
 
3,712

3,320

 
 
 
Less: cash and cash equivalents
 
(418
)
(223
)
 
 
 
Net Debt
 
$
4,066

$
3,729

 
 
 

___________________________
(a)
The non-GAAP financial measures "Currency-Neutral Bottle and Can Net Pricing Per Case" and "Currency-Neutral Bottle and Can Cost of Sales Per Case" are used to more clearly evaluate bottle and can pricing and cost trends in the marketplace. These measures exclude items not directly related to bottle and can pricing or cost and currency exchange rate changes.
(b)
The non-GAAP measure "Comparable Bottle and Can Volume" is used to analyze the performance of our business on a constant period basis. There were the same number of selling days in the second quarter of 2015 versus the second quarter of 2014. There were four additional selling days in the first six months of 2015 versus the first six months of 2014.
(c)
The non-GAAP measure "Free Cash Flow" is provided to focus management and investors on the cash available for debt reduction, dividend distributions, share repurchase, and acquisition opportunities.
(d)
The non-GAAP measure "Net Debt" is used to more clearly evaluate our capital structure and leverage.



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