ý
|
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
(State or other jurisdiction of incorporation or organization)
|
|
58-0628465
(I.R.S. Employer Identification No.)
|
One Coca-Cola Plaza, Atlanta, Georgia
(Address of principal executive offices)
|
|
30313
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $0.25 Par Value
|
|
New York Stock Exchange
|
Floating Rate Notes Due 2019
|
|
New York Stock Exchange
|
Floating Rate Notes Due 2019
|
|
New York Stock Exchange
|
0.000% Notes Due 2021
|
|
New York Stock Exchange
|
1.125% Notes Due 2022
|
|
New York Stock Exchange
|
0.75% Notes Due 2023
|
|
New York Stock Exchange
|
0.500% Notes Due 2024
|
|
New York Stock Exchange
|
1.875% Notes Due 2026
|
|
New York Stock Exchange
|
1.125% Notes Due 2027
|
|
New York Stock Exchange
|
1.625% Notes Due 2035
|
|
New York Stock Exchange
|
1.100% Notes Due 2036
|
|
New York Stock Exchange
|
|
|
Page
|
|
||
Part I
|
|
|
Part II
|
|
|
Part III
|
|
|
Part IV
|
|
|
|
•
|
Europe, Middle East and Africa
|
•
|
Latin America
|
•
|
North America
|
•
|
Asia Pacific
|
•
|
Bottling Investments
|
•
|
Corporate
|
•
|
"concentrates" means flavoring ingredients and, depending on the product, sweeteners used to prepare syrups or finished beverages and includes powders or minerals for purified water products such as Dasani;
|
•
|
"syrups" means beverage ingredients produced by combining concentrates and, depending on the product, sweeteners and added water;
|
•
|
"fountain syrups" means syrups that are sold to fountain retailers, such as restaurants and convenience stores, which use dispensing equipment to mix the syrups with sparkling or still water at the time of purchase to produce finished beverages that are served in cups or glasses for immediate consumption;
|
•
|
"Company Trademark Beverages" means beverages bearing our trademarks and certain other beverage products bearing trademarks licensed to us by third parties for which we provide marketing support and from the sale of which we derive economic benefit; and
|
•
|
"Trademark Coca-Cola Beverages" or "Trademark Coca-Cola" means beverages bearing the trademark Coca-Cola or any trademark that includes Coca-Cola or Coke (that is, Coca-Cola, Coca-Cola Life, Diet Coke/Coca-Cola Light and Coca-Cola Zero Sugar and all their variations and any line extensions, including caffeine free Diet Coke, Cherry Coke, etc.). Likewise, when we use the capitalized word "Trademark" together with the name of one of our other beverage products (such as "Trademark Fanta," "Trademark Sprite" or "Trademark Simply"), we mean beverages bearing the indicated trademark (that is, Fanta, Sprite or Simply, respectively) and all its variations and line extensions (such that "Trademark Fanta" includes Fanta Orange, Fanta Zero Orange, Fanta Apple, etc.; "Trademark Sprite" includes Sprite, Diet Sprite, Sprite Zero, Sprite Light, etc.; and "Trademark Simply" includes Simply Orange, Simply Apple, Simply Grapefruit, etc.).
|
•
|
beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished sparkling soft drinks and other nonalcoholic beverages (we refer to this part of our business as our "finished product business" or "finished product operations").
|
1
|
Including Coca-Cola No Sugar and Coca-Cola Zero.
|
2
|
Georgia is primarily a coffee brand sold mainly in Japan.
|
3
|
Del Valle is a juice and juice drink brand sold in Latin America. In Mexico and Brazil, we manufacture, market and sell Del Valle beverage products through joint ventures with our bottling partners.
|
4
|
Schweppes is owned by the Company in certain countries other than the United States.
|
5
|
Minute Maid Pulpy is a juice drink brand sold primarily in Asia Pacific.
|
6
|
Simply is a juice and juice drink brand sold in North America.
|
7
|
Gold Peak is primarily a tea brand sold in North America.
|
8
|
FUZE TEA is a brand sold outside of North America.
|
9
|
Glacéau Smartwater is a vapor-distilled water with added electrolytes which is sold mainly in North America and Great Britain.
|
10
|
Ice Dew is a water brand sold in China.
|
11
|
I LOHAS is a water brand sold primarily in Japan.
|
12
|
Ayataka is a green tea brand sold primarily in Japan.
|
•
|
We and certain of our bottlers distribute certain brands of Monster Beverage Corporation ("Monster"), primarily Monster Energy, in designated territories in the United States, Canada and other international territories pursuant to distribution coordination agreements between the Company and Monster and related distribution agreements between Monster and Company-owned or -controlled bottling operations and independent bottling and distribution partners.
|
•
|
We have a strategic partnership with Aujan Industries Company J.S.C. ("Aujan"), one of the largest independent beverage companies in the Middle East. We own 50 percent of the entity that holds the rights in certain territories to brands produced and distributed by Aujan, including Rani, a juice brand, and Barbican, a flavored malt beverage brand.
|
•
|
fairlife, LLC (“fairlife”), our joint venture with Select Milk Producers, Inc., a dairy cooperative, is a health and wellness dairy company whose products include fairlife ultra-filtered milk and Core Power, a high-protein milkshake. We and certain of our bottling partners distribute fairlife products in the United States and Canada.
|
•
|
Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), which has bottling and distribution operations in
Mexico (a substantial part of central Mexico, including Mexico City, as well as southeast and northeast Mexico), Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, the state of Paraná, the state of Santa Catarina, part of the state of Rio Grande do Sul, part of the state of Goiás, part of the state of Rio de Janeiro and part of the state of Minas Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and the Philippines (nationwide);
|
•
|
Coca-Cola European Partners plc ("CCEP"), which has bottling and distribution operations in Andorra, Belgium, France, Germany, Great Britain, Iceland, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain and Sweden;
|
•
|
Coca-Cola HBC AG ("Coca-Cola Hellenic"), which has bottling and distribution operations in Armenia, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, the Former Yugoslav Republic of Macedonia, Greece, Hungary, Italy, Latvia, Lithuania, Moldova, Montenegro, Nigeria, Northern Ireland, Poland, Republic of Ireland, Romania, the Russian Federation, Serbia, Slovakia, Slovenia, Switzerland and Ukraine;
|
•
|
Arca Continental, S.A.B. de C.V., which has bottling and distribution operations in northern and western Mexico, northern Argentina, Ecuador, Peru and the state of Texas and parts of the states of New Mexico, Oklahoma and Arkansas in the United States; and
|
•
|
Swire Beverages, which has bottling and distribution operations in Hong Kong, Taiwan, 11 provinces and the Shanghai Municipality in the eastern and southern areas of mainland China, and territories in 13 states in the western United States.
|
•
|
below a "safe harbor" threshold that may be established;
|
•
|
naturally occurring;
|
•
|
the result of necessary cooking; or
|
•
|
subject to another applicable exemption.
|
|
Principal Concentrate and/or Syrup Plants
|
|
Principal Beverage Manufacturing/Bottling Plants
|
|
Distribution and Storage Warehouses
|
||||||||||||
|
Owned
|
|
Leased
|
|
Owned
|
|
Leased
|
|
Owned
|
|
Leased
|
||||||
Europe, Middle East & Africa
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Latin America
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
6
|
|
North America
|
11
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
43
|
|
Asia Pacific
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Bottling Investments
|
—
|
|
|
—
|
|
|
35
|
|
|
3
|
|
|
33
|
|
|
89
|
|
Corporate
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Total
1
|
32
|
|
|
—
|
|
|
44
|
|
|
4
|
|
|
36
|
|
|
149
|
|
Period
|
Total Number of
Shares Purchased
1
|
|
|
Average
Price Paid
Per Share
|
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan
2
|
|
|
Maximum Number of
Shares That May
Yet Be Purchased
Under the Publicly
Announced Plan
|
|
|
September 30, 2017 through October 27, 2017
|
5,256,426
|
|
|
$
|
46.00
|
|
|
5,255,817
|
|
|
78,256,636
|
|
October 28, 2017 through November 24, 2017
|
1,660,944
|
|
|
45.84
|
|
|
1,660,597
|
|
|
76,596,039
|
|
|
November 25, 2017 through December 31, 2017
|
5,878,681
|
|
|
45.84
|
|
|
5,845,920
|
|
|
70,750,119
|
|
|
Total
|
12,796,051
|
|
|
$
|
45.91
|
|
|
12,762,334
|
|
|
|
1
|
The total number of shares purchased includes: (i) shares purchased pursuant to the 2012 Plan described in footnote 2 below, and (ii) shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding obligations in connection with so-called stock swap exercises of employee stock options and/or the vesting of restricted stock issued to employees, totaling 609 shares, 347 shares and 32,761 shares for the fiscal months of October, November and December 2017, respectively.
|
2
|
On October 18, 2012, the Company publicly announced that our Board of Directors had authorized a plan ("2012 Plan") for the Company to purchase up to 500 million shares of our Company's common stock. This column discloses the number of shares purchased pursuant to the 2012 Plan during the indicated time periods (including shares purchased pursuant to the terms of preset trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act).
|
December 31,
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
||||||
The Coca-Cola Company
|
$
|
100
|
|
$
|
117
|
|
$
|
123
|
|
$
|
130
|
|
$
|
129
|
|
$
|
148
|
|
Peer Group Index
|
100
|
|
126
|
|
143
|
|
163
|
|
180
|
|
200
|
|
||||||
S&P 500 Index
|
100
|
|
132
|
|
151
|
|
153
|
|
171
|
|
208
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|||||
(In millions except per share data)
|
|
|
|
||||||||||||||||
SUMMARY OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
$
|
44,294
|
|
|
$
|
45,998
|
|
|
$
|
46,854
|
|
Net income from continuing operations
|
1,182
|
|
|
6,550
|
|
|
7,366
|
|
|
7,124
|
|
|
8,626
|
|
|||||
Net income attributable to shareowners of
The Coca-Cola Company
|
1,248
|
|
|
6,527
|
|
|
7,351
|
|
|
7,098
|
|
|
8,584
|
|
|||||
PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income from continuing operations
|
$
|
0.28
|
|
|
$
|
1.51
|
|
|
$
|
1.69
|
|
|
$
|
1.62
|
|
|
$
|
1.94
|
|
Basic net income
|
0.29
|
|
|
1.51
|
|
|
1.69
|
|
|
1.62
|
|
|
1.94
|
|
|||||
Diluted net income from continuing operations
|
0.27
|
|
|
1.49
|
|
|
1.67
|
|
|
1.60
|
|
|
1.90
|
|
|||||
Diluted net income
|
0.29
|
|
|
1.49
|
|
|
1.67
|
|
|
1.60
|
|
|
1.90
|
|
|||||
Cash dividends
|
1.48
|
|
|
1.40
|
|
|
1.32
|
|
|
1.22
|
|
|
1.12
|
|
|||||
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
87,896
|
|
|
$
|
87,270
|
|
|
$
|
89,996
|
|
|
$
|
91,968
|
|
|
$
|
90,002
|
|
Long-term debt
|
31,182
|
|
|
29,684
|
|
|
28,311
|
|
|
19,010
|
|
|
19,101
|
|
•
|
Our Business
— a general description of our business and the nonalcoholic beverage segment of the commercial beverage industry; our objective; our strategic priorities; our core capabilities; and challenges and risks of our business.
|
•
|
Critical Accounting Policies and Estimates
— a discussion of accounting policies that require critical judgments and estimates.
|
•
|
Operations Review
— an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating segments are material to an understanding of our business as a whole, we present the discussion on a consolidated basis.
|
•
|
Liquidity, Capital Resources and Financial Position
— an analysis of cash flows; off-balance sheet arrangements and aggregate contractual obligations; foreign exchange; the impact of inflation and changing prices; and an overview of financial position.
|
•
|
beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished sparkling soft drinks and other nonalcoholic beverages (we refer to this part of our business as our "finished product business" or "finished product operations").
|
Year Ended December 31,
|
2017
|
|
2016
|
|
2015
|
|
Concentrate operations
1
|
51
|
%
|
40
|
%
|
37
|
%
|
Finished product operations
2
|
49
|
|
60
|
|
63
|
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
1
|
Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
Year Ended December 31,
|
2017
|
|
2016
|
|
2015
|
|
Concentrate operations
1
|
78
|
%
|
76
|
%
|
73
|
%
|
Finished product operations
2
|
22
|
|
24
|
|
27
|
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
1
|
Includes unit case volume related to concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes unit case volume related to fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
•
|
People: Being a great place to work where people are inspired to be the best they can be.
|
•
|
Portfolio: Bringing to the world a portfolio of beverage brands that anticipates and satisfies people's desires and needs.
|
•
|
Partners: Nurturing a winning network of partners and building mutual loyalty.
|
•
|
Planet: Being a responsible global citizen that makes a difference.
|
•
|
Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
|
•
|
Productivity: Managing our people, time and money for greatest effectiveness.
|
•
|
offer reduced-, low- or no-calorie beverage options;
|
•
|
provide transparent nutrition information, featuring calories on the front of most of our packages;
|
•
|
provide our beverages in a range of packaging sizes; and
|
•
|
market responsibly, including no advertising targeted to children under 12.
|
•
|
Principles of Consolidation
|
•
|
Recoverability of Current and Noncurrent Assets
|
•
|
Pension Plan Valuations
|
•
|
Revenue Recognition
|
•
|
Income Taxes
|
December 31, 2017
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Equity method investments
|
$
|
20,856
|
|
|
24
|
%
|
Securities classified as available-for-sale
|
7,807
|
|
|
9
|
|
|
Securities classified as trading
|
407
|
|
|
*
|
|
|
Cost method investments
|
143
|
|
|
*
|
|
|
Total
|
$
|
29,213
|
|
|
33
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
December 31, 2017
|
Fair
Value
|
|
|
Carrying
Value
|
|
|
Difference
|
|
|||
Monster Beverage Corporation
|
$
|
6,463
|
|
|
$
|
3,382
|
|
|
$
|
3,081
|
|
Coca-Cola FEMSA, S.A.B. de C.V.
|
4,065
|
|
|
1,865
|
|
|
2,200
|
|
|||
Coca-Cola European Partners plc
1
|
3,505
|
|
|
3,701
|
|
|
(196
|
)
|
|||
Coca-Cola HBC AG
|
2,754
|
|
|
1,315
|
|
|
1,439
|
|
|||
Coca-Cola Amatil Limited
|
1,449
|
|
|
721
|
|
|
728
|
|
|||
Coca-Cola Bottlers Japan Inc.
|
1,251
|
|
|
1,151
|
|
|
100
|
|
|||
Embotelladora Andina S.A.
|
647
|
|
|
293
|
|
|
354
|
|
|||
Coca-Cola Bottling Co. Consolidated
|
534
|
|
|
116
|
|
|
418
|
|
|||
Coca-Cola İçecek A.Ş.
|
449
|
|
|
221
|
|
|
228
|
|
|||
Corporación Lindley S.A.
|
283
|
|
|
131
|
|
|
152
|
|
|||
Total
|
$
|
21,400
|
|
|
$
|
12,896
|
|
|
$
|
8,504
|
|
December 31, 2017
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Goodwill
|
$
|
9,401
|
|
|
11
|
%
|
Trademarks with indefinite lives
|
6,729
|
|
|
8
|
|
|
Bottlers' franchise rights with indefinite lives
|
138
|
|
|
*
|
|
|
Definite-lived intangible assets, net
|
262
|
|
|
*
|
|
|
Other intangible assets not subject to amortization
|
106
|
|
|
*
|
|
|
Total
|
$
|
16,636
|
|
|
19
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
|
Percent Change
|
|
||||||||||
|
2017 versus 2016
|
|
2016 versus 2015
|
|
||||||||
Year Ended December 31,
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
|
Worldwide
|
—
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
6
|
Europe, Middle East & Africa
|
1
|
%
|
|
1
|
%
|
3
|
1
|
%
|
|
—
|
%
|
|
Latin America
|
(2
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
North America
|
—
|
|
|
2
|
|
4
|
1
|
|
|
2
|
|
6
|
Asia Pacific
|
1
|
|
|
4
|
|
5
|
2
|
|
|
3
|
|
|
Bottling Investments
|
(41
|
)
|
|
N/A
|
|
|
(16
|
)
|
|
N/A
|
|
|
1
|
Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only.
|
2
|
Geographic operating segment data reflects unit case volume growth for all bottlers, both consolidated and unconsolidated, and distributors in the applicable geographic areas.
|
3
|
After considering the impact of structural changes, concentrate sales volume for Europe, Middle East and Africa for the year ended December 31, 2017 grew 2 percent.
|
4
|
After considering the impact of structural changes, concentrate sales volume for North America for the year ended December 31, 2017 was even.
|
5
|
After considering the impact of structural changes, concentrate sales volume for Asia Pacific for the year ended December 31, 2017 grew 1 percent.
|
6
|
After considering the impact of structural changes, concentrate sales volume both worldwide and for North America for the year ended December 31, 2016 grew 1 percent.
|
|
|
|
|
|
|
|
Percent Change
|
||||||||||
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
|||||
(In millions except percentages and per share data)
|
|
|
|
|
|
|
|
||||||||||
NET OPERATING REVENUES
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
$
|
44,294
|
|
|
(15
|
)%
|
|
(5
|
)%
|
Cost of goods sold
|
13,256
|
|
|
16,465
|
|
|
17,482
|
|
|
(19
|
)
|
|
(6
|
)
|
|||
GROSS PROFIT
|
22,154
|
|
|
25,398
|
|
|
26,812
|
|
|
(13
|
)
|
|
(5
|
)
|
|||
GROSS PROFIT MARGIN
|
62.6
|
%
|
|
60.7
|
%
|
|
60.5
|
%
|
|
|
|
|
|
||||
Selling, general and administrative expenses
|
12,496
|
|
|
15,262
|
|
|
16,427
|
|
|
(18
|
)
|
|
(7
|
)
|
|||
Other operating charges
|
2,157
|
|
|
1,510
|
|
|
1,657
|
|
|
43
|
|
|
(9
|
)
|
|||
OPERATING INCOME
|
7,501
|
|
|
8,626
|
|
|
8,728
|
|
|
(13
|
)
|
|
(1
|
)
|
|||
OPERATING MARGIN
|
21.2
|
%
|
|
20.6
|
%
|
|
19.7
|
%
|
|
|
|
|
|
||||
Interest income
|
677
|
|
|
642
|
|
|
613
|
|
|
6
|
|
|
5
|
|
|||
Interest expense
|
841
|
|
|
733
|
|
|
856
|
|
|
15
|
|
|
(14
|
)
|
|||
Equity income (loss) — net
|
1,071
|
|
|
835
|
|
|
489
|
|
|
28
|
|
|
71
|
|
|||
Other income (loss) — net
|
(1,666
|
)
|
|
(1,234
|
)
|
|
631
|
|
|
(35
|
)
|
|
*
|
|
|||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
6,742
|
|
|
8,136
|
|
|
9,605
|
|
|
(17
|
)
|
|
(15
|
)
|
|||
Income taxes from continuing operations
|
5,560
|
|
|
1,586
|
|
|
2,239
|
|
|
251
|
|
(29
|
)
|
||||
Effective tax rate
|
82.5
|
%
|
|
19.5
|
%
|
|
23.3
|
%
|
|
|
|
|
|
|
|||
NET INCOME FROM CONTINUING OPERATIONS
|
1,182
|
|
|
6,550
|
|
|
7,366
|
|
|
(82
|
)
|
|
(11
|
)
|
|||
Income from discontinued operations (net of income taxes of $47, $0 and $0, respectively)
|
101
|
|
|
—
|
|
|
—
|
|
|
*
|
|
|
*
|
|
|||
CONSOLIDATED NET INCOME
|
1,283
|
|
|
6,550
|
|
|
7,366
|
|
|
(80
|
)
|
|
(11
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
35
|
|
|
23
|
|
|
15
|
|
|
55
|
|
|
45
|
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
1,248
|
|
|
$
|
6,527
|
|
|
$
|
7,351
|
|
|
(81
|
)%
|
|
(11
|
)%
|
BASIC NET INCOME PER SHARE
1
|
$
|
0.29
|
|
|
$
|
1.51
|
|
|
$
|
1.69
|
|
|
(81
|
)%
|
|
(11
|
)%
|
DILUTED NET INCOME PER SHARE
1
|
$
|
0.29
|
|
|
$
|
1.49
|
|
|
$
|
1.67
|
|
|
(81
|
)%
|
|
(10
|
)%
|
*
|
Calculation is not meaningful.
|
1
|
Calculated based on net income attributable to shareowners of The Coca-Cola Company.
|
|
Percent Change 2017 vs. 2016
|
|||||||||||||
|
Volume
1
|
|
|
Acquisitions & Divestitures
|
|
|
Price, Product &
Geographic Mix
|
|
|
Currency
Fluctuations
|
|
|
Total
|
|
Consolidated
|
—
|
%
|
|
(17
|
)%
|
|
3
|
%
|
|
(1
|
)%
|
|
(15
|
)%
|
Europe, Middle East & Africa
|
2
|
%
|
|
(2
|
)%
|
|
3
|
%
|
|
(2
|
)%
|
|
1
|
%
|
Latin America
|
(3
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
5
|
|
North America
|
—
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
4
|
|
Asia Pacific
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
Bottling Investments
|
(3
|
)
|
|
(48
|
)
|
|
4
|
|
|
—
|
|
|
(47
|
)
|
Corporate
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
1
|
Represents the percent change in net operating 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 operating revenues attributable to the increase (decrease) in unit case volume after considering the impact of structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.
|
•
|
Europe, Middle East and Africa — favorably impacted as a result of pricing initiatives and product and package mix, partially offset by geographic mix;
|
•
|
Latin America — favorable price mix in all four of the segment's business units and the impact of inflationary environments in certain markets;
|
•
|
North America — favorably impacted as a result of pricing initiatives and product and package mix;
|
•
|
Asia Pacific — unfavorably impacted by geographic mix, partially offset by the favorable impact of pricing initiatives and product and package mix; and
|
•
|
Bottling Investments — favorably impacted as a result of pricing initiatives and product and package mix in North America.
|
|
Percent Change 2016 vs. 2015
|
|||||||||||||
|
Volume
1
|
|
|
Acquisitions & Divestitures
|
|
|
Price, Product &
Geographic Mix
|
|
|
Currency
Fluctuations
|
|
|
Total
|
|
Consolidated
|
1
|
%
|
|
(6
|
)%
|
|
3
|
%
|
|
(3
|
)%
|
|
(5
|
)%
|
Europe, Middle East & Africa
|
—
|
%
|
|
(4
|
)%
|
|
2
|
%
|
|
(3
|
)%
|
|
(4
|
)%
|
Latin America
|
(1
|
)
|
|
—
|
|
|
13
|
|
|
(18
|
)
|
|
(6
|
)
|
North America
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
4
|
|
Asia Pacific
|
3
|
|
|
(2
|
)
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
Bottling Investments
|
—
|
|
|
(13
|
)
|
|
1
|
|
|
(1
|
)
|
|
(14
|
)
|
Corporate
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
1
|
Represents the percent change in net operating 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 operating revenues attributable to the increase (decrease) in unit case volume after considering the impact of structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.
|
•
|
Europe, Middle East and Africa — favorable product and geographic mix;
|
•
|
Latin America — favorable price mix in all four of the segment's business units and the impact of inflationary environments in certain markets, partially offset by unfavorable geographic mix;
|
•
|
North America — favorably impacted as a result of pricing initiatives and product and package mix; and
|
•
|
Asia Pacific — unfavorable product and channel mix.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Europe, Middle East & Africa
|
20.7
|
%
|
|
16.8
|
%
|
|
15.7
|
%
|
Latin America
|
11.2
|
|
|
8.9
|
|
|
9.0
|
|
North America
|
24.4
|
|
|
15.4
|
|
|
12.6
|
|
Asia Pacific
|
13.5
|
|
|
11.4
|
|
|
10.6
|
|
Bottling Investments
|
29.8
|
|
|
47.2
|
|
|
51.7
|
|
Corporate
|
0.4
|
|
|
0.3
|
|
|
0.4
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Stock-based compensation expense
|
$
|
219
|
|
|
$
|
258
|
|
|
$
|
236
|
|
Advertising expenses
|
3,958
|
|
|
4,004
|
|
|
3,976
|
|
|||
Selling and distribution expenses
1
|
3,257
|
|
|
5,177
|
|
|
6,025
|
|
|||
Other operating expenses
|
5,062
|
|
|
5,823
|
|
|
6,190
|
|
|||
Selling, general and administrative expenses
|
$
|
12,496
|
|
|
$
|
15,262
|
|
|
$
|
16,427
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Europe, Middle East & Africa
|
$
|
26
|
|
|
$
|
32
|
|
|
$
|
(9
|
)
|
Latin America
|
7
|
|
|
74
|
|
|
40
|
|
|||
North America
|
241
|
|
|
134
|
|
|
141
|
|
|||
Asia Pacific
|
10
|
|
|
1
|
|
|
3
|
|
|||
Bottling Investments
|
1,218
|
|
|
900
|
|
|
600
|
|
|||
Corporate
|
655
|
|
|
369
|
|
|
882
|
|
|||
Total
|
$
|
2,157
|
|
|
$
|
1,510
|
|
|
$
|
1,657
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Europe, Middle East & Africa
|
48.6
|
%
|
|
42.6
|
%
|
|
44.4
|
%
|
Latin America
|
29.5
|
|
|
22.6
|
|
|
24.9
|
|
North America
|
34.4
|
|
|
30.0
|
|
|
27.1
|
|
Asia Pacific
|
28.8
|
|
|
25.8
|
|
|
25.1
|
|
Bottling Investments
|
(14.9
|
)
|
|
(1.6
|
)
|
|
1.4
|
|
Corporate
|
(26.4
|
)
|
|
(19.4
|
)
|
|
(22.9
|
)
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Consolidated
|
21.2
|
%
|
|
20.6
|
%
|
|
19.7
|
%
|
Europe, Middle East & Africa
|
49.7
|
%
|
|
52.4
|
%
|
|
55.6
|
%
|
Latin America
|
56.0
|
|
|
52.1
|
|
|
54.3
|
|
North America
|
29.8
|
|
|
40.1
|
|
|
42.4
|
|
Asia Pacific
|
45.4
|
|
|
46.5
|
|
|
46.5
|
|
Bottling Investments
|
(10.6
|
)
|
|
(0.7
|
)
|
|
0.5
|
|
Corporate
|
*
|
|
|
*
|
|
|
*
|
|
*
|
Calculation is not meaningful.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Statutory U.S. federal tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State and local income taxes — net of federal benefit
|
1.2
|
|
|
1.2
|
|
|
1.2
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(9.7
|
)
|
|
(17.5
|
)
|
5
|
(12.7
|
)
|
Equity income or loss
|
(3.4
|
)
|
|
(3.0
|
)
|
|
(1.7
|
)
|
Tax Reform Act
|
53.5
|
|
1
|
—
|
|
|
—
|
|
Other — net
|
5.9
|
|
2,3,4
|
3.8
|
|
6
|
1.5
|
|
Effective tax rate
|
82.5
|
%
|
|
19.5
|
%
|
|
23.3
|
%
|
1
|
Includes net tax expense of
$3,610 million
primarily related to our reasonable estimate of the one-time transition tax resulting from the Tax Reform Act that was signed into law on December 22, 2017, partially offset by the impact of the lower rate introduced by the Tax Reform Act on our existing deferred tax balances. Refer to Note 14 of Notes to Consolidated Financial Statements.
|
2
|
Includes excess tax benefits of
$132 million
(or a
2 percent
impact on our effective tax rate) recognized as awards issued under the Company's share-based compensation arrangements vested or were settled.
|
3
|
Includes net tax expense of
$1,048 million
on a pretax gain of
$1,037 million
(or a
10.2 percent
impact on our effective tax rate) related to the refranchising of CCR's Southwest operating unit ("Southwest Transaction"), in conjunction with which we obtained an equity interest in AC Bebidas. The Company accounts for its interest in AC Bebidas as an equity method investment and the net tax expense was primarily the result of the deferred tax recorded on the basis difference in this investment. Refer to Note 2 of Notes to Consolidated Financial Statements.
|
4
|
Includes a
$156 million
net tax benefit related to the impact of manufacturing incentives and permanent book-to-tax adjustments.
|
5
|
Includes tax expense of
$97 million
related to a pretax gain of
$1,323 million
(or a
4.5 percent
impact on our effective tax rate) related to
|
6
|
Includes tax expense of
$157 million
(or a
1.9 percent
impact on our effective tax rate) primarily related to amounts required to be
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
302
|
|
|
$
|
168
|
|
|
$
|
211
|
|
Increase related to prior period tax positions
|
18
|
|
|
163
|
|
1
|
4
|
|
|||
Decrease related to prior period tax positions
|
(13
|
)
|
|
—
|
|
|
(9
|
)
|
|||
Increase related to current period tax positions
|
13
|
|
|
17
|
|
|
5
|
|
|||
Decrease related to settlements with taxing authorities
|
—
|
|
|
(40
|
)
|
1
|
(5
|
)
|
|||
Decrease due to lapse of the applicable statute of limitations
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||
Increase (decrease) due to effect of foreign currency exchange rate changes
|
11
|
|
|
(6
|
)
|
|
(15
|
)
|
|||
Ending balance of unrecognized tax benefits
|
$
|
331
|
|
|
$
|
302
|
|
|
$
|
168
|
|
1
|
The increase is primarily related to a change in judgment about one of the Company's tax positions as a result of receiving notification of a preliminary settlement of a Competent Authority matter with a foreign jurisdiction, a portion of which became certain later in the year. This change in position did not have a material impact on the Company's consolidated statement of income during the year ended December 31, 2016, as it was partially offset by refunds to be received from the foreign jurisdiction.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Purchases of investments
|
$
|
(16,520
|
)
|
|
$
|
(15,499
|
)
|
|
$
|
(15,831
|
)
|
Proceeds from disposals of investments
|
15,911
|
|
|
16,624
|
|
|
14,079
|
|
|||
Acquisitions of businesses, equity method investments and nonmarketable securities
|
(3,900
|
)
|
|
(838
|
)
|
|
(2,491
|
)
|
|||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
|
3,821
|
|
|
1,035
|
|
|
565
|
|
|||
Purchases of property, plant and equipment
|
(1,675
|
)
|
|
(2,262
|
)
|
|
(2,553
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
104
|
|
|
150
|
|
|
85
|
|
|||
Other investing activities
|
(126
|
)
|
|
(209
|
)
|
|
(40
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(2,385
|
)
|
|
$
|
(999
|
)
|
|
$
|
(6,186
|
)
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Capital expenditures
|
$
|
1,675
|
|
|
$
|
2,262
|
|
|
$
|
2,553
|
|
Europe, Middle East & Africa
|
4.8
|
%
|
|
2.7
|
%
|
|
2.1
|
%
|
|||
Latin America
|
3.3
|
|
|
2.0
|
|
|
2.7
|
|
|||
North America
|
32.3
|
|
|
19.4
|
|
|
14.8
|
|
|||
Asia Pacific
|
3.0
|
|
|
4.7
|
|
|
3.2
|
|
|||
Bottling Investments
|
39.5
|
|
|
58.8
|
|
|
66.5
|
|
|||
Corporate
|
17.1
|
|
|
12.4
|
|
|
10.7
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Issuances of debt
|
$
|
29,857
|
|
|
$
|
27,281
|
|
|
$
|
40,434
|
|
Payments of debt
|
(28,768
|
)
|
|
(25,615
|
)
|
|
(37,738
|
)
|
|||
Issuances of stock
|
1,595
|
|
|
1,434
|
|
|
1,245
|
|
|||
Purchases of stock for treasury
|
(3,682
|
)
|
|
(3,681
|
)
|
|
(3,564
|
)
|
|||
Dividends
|
(6,320
|
)
|
|
(6,043
|
)
|
|
(5,741
|
)
|
|||
Other financing activities
|
(91
|
)
|
|
79
|
|
|
251
|
|
|||
Net cash provided by (used in) financing activities
|
$
|
(7,409
|
)
|
|
$
|
(6,545
|
)
|
|
$
|
(5,113
|
)
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Number of shares repurchased (in millions)
|
82
|
|
|
86
|
|
|
86
|
|
|||
Average price per share
|
$
|
44.09
|
|
|
$
|
43.62
|
|
|
$
|
41.33
|
|
•
|
any obligation under certain guarantee contracts;
|
•
|
a retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets;
|
•
|
any obligation under certain derivative instruments; and
|
•
|
any obligation arising out of a material variable interest held by the registrant in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and development services with the registrant.
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
|
2018
|
|
|
2019-2020
|
|
|
2021-2022
|
|
|
2023 and
Thereafter
|
|
|||||
Short-term loans and notes payable:
1
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper borrowings
|
$
|
12,931
|
|
|
$
|
12,931
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Lines of credit and other short-term borrowings
|
274
|
|
|
274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Current maturities of long-term debt
2
|
3,300
|
|
|
3,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt, net of current maturities
2
|
31,082
|
|
|
—
|
|
|
9,501
|
|
|
5,398
|
|
|
16,183
|
|
|||||
Estimated interest payments
3
|
5,064
|
|
|
519
|
|
|
883
|
|
|
702
|
|
|
2,960
|
|
|||||
Accrued income taxes
4
|
4,663
|
|
|
410
|
|
|
740
|
|
|
740
|
|
|
2,773
|
|
|||||
Purchase obligations
5
|
14,582
|
|
|
8,132
|
|
|
1,464
|
|
|
832
|
|
|
4,154
|
|
|||||
Marketing obligations
6
|
4,629
|
|
|
2,439
|
|
|
1,033
|
|
|
619
|
|
|
538
|
|
|||||
Lease obligations
|
817
|
|
|
182
|
|
|
231
|
|
|
176
|
|
|
228
|
|
|||||
Held-for-sale obligations
7
|
1,592
|
|
|
1,591
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
78,934
|
|
|
$
|
29,778
|
|
|
$
|
13,853
|
|
|
$
|
8,467
|
|
|
$
|
26,836
|
|
1
|
Refer to
Note 10
of Notes to Consolidated Financial Statements for information regarding short-term loans and notes payable. Upon payment of outstanding commercial paper, we typically issue new commercial paper. Lines of credit and other short-term borrowings are expected to fluctuate depending upon current liquidity needs, especially at international subsidiaries.
|
2
|
Refer to
Note 10
of Notes to Consolidated Financial Statements for information regarding long-term debt. We will consider several alternatives to settle this long-term debt, including the use of cash flows from operating activities, issuance of commercial paper or issuance of other long-term debt. The table above shows expected cash payments to be paid by the Company in future periods and excludes the noncash portion of debt, including the fair market value markup, unamortized discounts and premiums.
|
3
|
We calculated estimated interest payments for our long-term debt based on the applicable rates and payment dates. For our variable-rate debt, we have assumed the
December 31, 2017
rate for all years presented. We typically expect to settle such interest payments with cash flows from operating activities and/or short-term borrowings.
|
4
|
Refer to
Note 14
of Notes to Consolidated Financial Statements for information regarding income taxes. Accrued income taxes includes $4,623 million related to the one-time transition tax required by the Tax Reform Act. Unrecognized tax benefits, including accrued interest and penalties of $505 million, were not included in the total above. At this time, the settlement period for the unrecognized tax benefits cannot be determined. In addition, any payments related to unrecognized tax benefits would be partially offset by reductions in payments in other jurisdictions.
|
5
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including long-term contractual obligations, open purchase orders, accounts payable and certain accrued liabilities. We expect to fund these obligations with cash flows from operating activities.
|
6
|
We expect to fund these marketing obligations with cash flows from operating activities.
|
7
|
Represents liabilities and contractual obligations of the Company's bottling operations that are classified as held for sale.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
All operating currencies
|
—
|
%
|
|
(5
|
)%
|
|
(15
|
)%
|
Brazilian real
|
11
|
%
|
|
(9
|
)%
|
|
(27
|
)%
|
Mexican peso
|
(2
|
)
|
|
(14
|
)
|
|
(16
|
)
|
Australian dollar
|
3
|
|
|
(1
|
)
|
|
(17
|
)
|
South African rand
|
10
|
|
|
(13
|
)
|
|
(15
|
)
|
British pound
|
(6
|
)
|
|
(11
|
)
|
|
(8
|
)
|
Euro
|
1
|
|
|
—
|
|
|
(17
|
)
|
Japanese yen
|
(3
|
)
|
|
11
|
|
|
(14
|
)
|
December 31,
|
2017
|
|
|
2016
|
|
|
Increase (Decrease)
|
|
|
Percent Change
|
|
|||
Cash and cash equivalents
|
$
|
6,006
|
|
|
$
|
8,555
|
|
|
$
|
(2,549
|
)
|
|
(30
|
)%
|
Short-term investments
|
9,352
|
|
|
9,595
|
|
|
(243
|
)
|
|
(3
|
)
|
|||
Marketable securities
|
5,317
|
|
|
4,051
|
|
|
1,266
|
|
|
31
|
|
|||
Trade accounts receivable — net
|
3,667
|
|
|
3,856
|
|
|
(189
|
)
|
|
(5
|
)
|
|||
Inventories
|
2,655
|
|
|
2,675
|
|
|
(20
|
)
|
|
(1
|
)
|
|||
Prepaid expenses and other assets
|
2,000
|
|
|
2,481
|
|
|
(481
|
)
|
|
(19
|
)
|
|||
Assets held for sale
|
219
|
|
|
2,797
|
|
|
(2,578
|
)
|
|
(92
|
)
|
|||
Assets held for sale — discontinued operations
|
7,329
|
|
|
—
|
|
|
7,329
|
|
|
—
|
|
|||
Equity method investments
|
20,856
|
|
|
16,260
|
|
|
4,596
|
|
|
28
|
|
|||
Other investments
|
1,096
|
|
|
989
|
|
|
107
|
|
|
11
|
|
|||
Other assets
|
4,560
|
|
|
4,248
|
|
|
312
|
|
|
7
|
|
|||
Property, plant and equipment — net
|
8,203
|
|
|
10,635
|
|
|
(2,432
|
)
|
|
(23
|
)
|
|||
Trademarks with indefinite lives
|
6,729
|
|
|
6,097
|
|
|
632
|
|
|
10
|
|
|||
Bottlers' franchise rights with indefinite lives
|
138
|
|
|
3,676
|
|
|
(3,538
|
)
|
|
(96
|
)
|
|||
Goodwill
|
9,401
|
|
|
10,629
|
|
|
(1,228
|
)
|
|
(12
|
)
|
|||
Other intangible assets
|
368
|
|
|
726
|
|
|
(358
|
)
|
|
(49
|
)
|
|||
Total assets
|
$
|
87,896
|
|
|
$
|
87,270
|
|
|
$
|
626
|
|
|
1
|
%
|
Accounts payable and accrued expenses
|
$
|
8,748
|
|
|
$
|
9,490
|
|
|
$
|
(742
|
)
|
|
(8
|
)%
|
Loans and notes payable
|
13,205
|
|
|
12,498
|
|
|
707
|
|
|
6
|
|
|||
Current maturities of long-term debt
|
3,298
|
|
|
3,527
|
|
|
(229
|
)
|
|
(6
|
)
|
|||
Accrued income taxes
|
410
|
|
|
307
|
|
|
103
|
|
|
34
|
|
|||
Liabilities held for sale
|
37
|
|
|
710
|
|
|
(673
|
)
|
|
(95
|
)
|
|||
Liabilities held for sale — discontinued operations
|
1,496
|
|
|
—
|
|
|
1,496
|
|
|
—
|
|
|||
Long-term debt
|
31,182
|
|
|
29,684
|
|
|
1,498
|
|
|
5
|
|
|||
Other liabilities
|
8,021
|
|
|
4,081
|
|
|
3,940
|
|
|
97
|
|
|||
Deferred income taxes
|
2,522
|
|
|
3,753
|
|
|
(1,231
|
)
|
|
(33
|
)
|
|||
Total liabilities
|
$
|
68,919
|
|
|
$
|
64,050
|
|
|
$
|
4,869
|
|
|
8
|
%
|
Net assets
|
$
|
18,977
|
|
|
$
|
23,220
|
|
|
$
|
(4,243
|
)
|
1
|
(18
|
)%
|
1
|
Includes an increase in net assets of
$861 million
resulting from foreign currency translation adjustments in various balance sheet line items.
|
•
|
Assets held for sale and liabilities held for sale decreased primarily due to the North America and China bottling refranchising activities. Refer to Note 2 of Notes to Consolidated Financial Statements for additional information.
|
•
|
Assets held for sale — discontinued operations and liabilities held for sale — discontinued operations increased as a result of CCBA meeting the criteria to be classified as held for sale. Refer to Note 2 of Notes to Consolidated Financial Statements for additional information.
|
•
|
Equity method investments increased primarily due to our new investments in AC Bebidas and CCBJI. Refer to Note 2 and Note 17 of Notes to Consolidated Financial Statements for additional information.
|
•
|
Property, plant and equipment, bottlers' franchise rights with indefinite lives and goodwill decreased primarily as a result of additional North America bottling territories being refranchised as well as impairment charges recorded. Refer to Note 2 and Note 16 of Notes to Consolidated Financial Statements for additional information.
|
•
|
Other liabilities increased and deferred income taxes decreased primarily due to the Tax Reform Act signed into law on December 22, 2017. Refer to Note 14 of Notes to Consolidated Financial Statements for additional information.
|
|
Page
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
(In millions except per share data)
|
|
|
|
||||||||
NET OPERATING REVENUES
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
$
|
44,294
|
|
Cost of goods sold
|
13,256
|
|
|
16,465
|
|
|
17,482
|
|
|||
GROSS PROFIT
|
22,154
|
|
|
25,398
|
|
|
26,812
|
|
|||
Selling, general and administrative expenses
|
12,496
|
|
|
15,262
|
|
|
16,427
|
|
|||
Other operating charges
|
2,157
|
|
|
1,510
|
|
|
1,657
|
|
|||
OPERATING INCOME
|
7,501
|
|
|
8,626
|
|
|
8,728
|
|
|||
Interest income
|
677
|
|
|
642
|
|
|
613
|
|
|||
Interest expense
|
841
|
|
|
733
|
|
|
856
|
|
|||
Equity income (loss) — net
|
1,071
|
|
|
835
|
|
|
489
|
|
|||
Other income (loss) — net
|
(1,666
|
)
|
|
(1,234
|
)
|
|
631
|
|
|||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
6,742
|
|
|
8,136
|
|
|
9,605
|
|
|||
Income taxes from continuing operations
|
5,560
|
|
|
1,586
|
|
|
2,239
|
|
|||
NET INCOME FROM CONTINUING OPERATIONS
|
1,182
|
|
|
6,550
|
|
|
7,366
|
|
|||
Income from discontinued operations (net of income taxes of $47, $0 and $0, respectively)
|
101
|
|
|
—
|
|
|
—
|
|
|||
CONSOLIDATED NET INCOME
|
1,283
|
|
|
6,550
|
|
|
7,366
|
|
|||
Less: Net income attributable to noncontrolling interests
|
35
|
|
|
23
|
|
|
15
|
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
1,248
|
|
|
$
|
6,527
|
|
|
$
|
7,351
|
|
|
|
|
|
|
|
||||||
Basic net income per share from continuing operations
1
|
$
|
0.28
|
|
|
$
|
1.51
|
|
|
$
|
1.69
|
|
Basic net income per share from discontinued operations
2
|
0.02
|
|
|
—
|
|
|
—
|
|
|||
BASIC NET INCOME PER SHARE
|
$
|
0.29
|
|
3
|
$
|
1.51
|
|
|
$
|
1.69
|
|
Diluted net income per share from continuing operations
1
|
$
|
0.27
|
|
|
$
|
1.49
|
|
|
$
|
1.67
|
|
Diluted net income per share from discontinued operations
2
|
0.02
|
|
|
—
|
|
|
—
|
|
|||
DILUTED NET INCOME PER SHARE
|
$
|
0.29
|
|
|
$
|
1.49
|
|
|
$
|
1.67
|
|
AVERAGE SHARES OUTSTANDING — BASIC
|
4,272
|
|
|
4,317
|
|
|
4,352
|
|
|||
Effect of dilutive securities
|
52
|
|
|
50
|
|
|
53
|
|
|||
AVERAGE SHARES OUTSTANDING — DILUTED
|
4,324
|
|
|
4,367
|
|
|
4,405
|
|
1
|
Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests.
|
2
|
Calculated based on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests.
|
3
|
Per share amounts do not add due to rounding.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
(In millions)
|
|
|
|
||||||||
CONSOLIDATED NET INCOME
|
$
|
1,283
|
|
|
$
|
6,550
|
|
|
$
|
7,366
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Net foreign currency translation adjustment
|
861
|
|
|
(626
|
)
|
|
(3,959
|
)
|
|||
Net gain (loss) on derivatives
|
(433
|
)
|
|
(382
|
)
|
|
142
|
|
|||
Net unrealized gain (loss) on available-for-sale securities
|
188
|
|
|
17
|
|
|
(684
|
)
|
|||
Net change in pension and other benefit liabilities
|
322
|
|
|
(53
|
)
|
|
86
|
|
|||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
2,221
|
|
|
5,506
|
|
|
2,951
|
|
|||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
73
|
|
|
10
|
|
|
(3
|
)
|
|||
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
SHAREOWNERS OF THE COCA-COLA COMPANY
|
$
|
2,148
|
|
|
$
|
5,496
|
|
|
$
|
2,954
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
(In millions except par value)
|
|
|
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
6,006
|
|
|
$
|
8,555
|
|
Short-term investments
|
9,352
|
|
|
9,595
|
|
||
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
|
15,358
|
|
|
18,150
|
|
||
Marketable securities
|
5,317
|
|
|
4,051
|
|
||
Trade accounts receivable, less allowances of $477 and $466, respectively
|
3,667
|
|
|
3,856
|
|
||
Inventories
|
2,655
|
|
|
2,675
|
|
||
Prepaid expenses and other assets
|
2,000
|
|
|
2,481
|
|
||
Assets held for sale
|
219
|
|
|
2,797
|
|
||
Assets held for sale — discontinued operations
|
7,329
|
|
|
—
|
|
||
TOTAL CURRENT ASSETS
|
36,545
|
|
|
34,010
|
|
||
EQUITY METHOD INVESTMENTS
|
20,856
|
|
|
16,260
|
|
||
OTHER INVESTMENTS
|
1,096
|
|
|
989
|
|
||
OTHER ASSETS
|
4,560
|
|
|
4,248
|
|
||
PROPERTY, PLANT AND EQUIPMENT — net
|
8,203
|
|
|
10,635
|
|
||
TRADEMARKS WITH INDEFINITE LIVES
|
6,729
|
|
|
6,097
|
|
||
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES
|
138
|
|
|
3,676
|
|
||
GOODWILL
|
9,401
|
|
|
10,629
|
|
||
OTHER INTANGIBLE ASSETS
|
368
|
|
|
726
|
|
||
TOTAL ASSETS
|
$
|
87,896
|
|
|
$
|
87,270
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
8,748
|
|
|
$
|
9,490
|
|
Loans and notes payable
|
13,205
|
|
|
12,498
|
|
||
Current maturities of long-term debt
|
3,298
|
|
|
3,527
|
|
||
Accrued income taxes
|
410
|
|
|
307
|
|
||
Liabilities held for sale
|
37
|
|
|
710
|
|
||
Liabilities held for sale — discontinued operations
|
1,496
|
|
|
—
|
|
||
TOTAL CURRENT LIABILITIES
|
27,194
|
|
|
26,532
|
|
||
LONG-TERM DEBT
|
31,182
|
|
|
29,684
|
|
||
OTHER LIABILITIES
|
8,021
|
|
|
4,081
|
|
||
DEFERRED INCOME TAXES
|
2,522
|
|
|
3,753
|
|
||
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
|
15,864
|
|
|
14,993
|
|
||
Reinvested earnings
|
60,430
|
|
|
65,502
|
|
||
Accumulated other comprehensive income (loss)
|
(10,305
|
)
|
|
(11,205
|
)
|
||
Treasury stock, at cost — 2,781 and 2,752 shares, respectively
|
(50,677
|
)
|
|
(47,988
|
)
|
||
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
17,072
|
|
|
23,062
|
|
||
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
1,905
|
|
|
158
|
|
||
TOTAL EQUITY
|
18,977
|
|
|
23,220
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
87,896
|
|
|
$
|
87,270
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
(In millions)
|
|
|
|
||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Consolidated net income
|
$
|
1,283
|
|
|
$
|
6,550
|
|
|
$
|
7,366
|
|
(Income) loss from discontinued operations
|
(101
|
)
|
|
—
|
|
|
—
|
|
|||
Net income from continuing operations
|
1,182
|
|
|
6,550
|
|
|
7,366
|
|
|||
Depreciation and amortization
|
1,260
|
|
|
1,787
|
|
|
1,970
|
|
|||
Stock-based compensation expense
|
219
|
|
|
258
|
|
|
236
|
|
|||
Deferred income taxes
|
(1,256
|
)
|
|
(856
|
)
|
|
73
|
|
|||
Equity (income) loss — net of dividends
|
(628
|
)
|
|
(449
|
)
|
|
(122
|
)
|
|||
Foreign currency adjustments
|
281
|
|
|
158
|
|
|
(137
|
)
|
|||
Significant (gains) losses on sales of assets — net
|
1,459
|
|
|
1,146
|
|
|
(374
|
)
|
|||
Other operating charges
|
1,218
|
|
|
647
|
|
|
929
|
|
|||
Other items
|
(269
|
)
|
|
(224
|
)
|
|
744
|
|
|||
Net change in operating assets and liabilities
|
3,529
|
|
|
(221
|
)
|
|
(157
|
)
|
|||
Net cash provided by operating activities
|
6,995
|
|
|
8,796
|
|
|
10,528
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Purchases of investments
|
(16,520
|
)
|
|
(15,499
|
)
|
|
(15,831
|
)
|
|||
Proceeds from disposals of investments
|
15,911
|
|
|
16,624
|
|
|
14,079
|
|
|||
Acquisitions of businesses, equity method investments and nonmarketable securities
|
(3,900
|
)
|
|
(838
|
)
|
|
(2,491
|
)
|
|||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
|
3,821
|
|
|
1,035
|
|
|
565
|
|
|||
Purchases of property, plant and equipment
|
(1,675
|
)
|
|
(2,262
|
)
|
|
(2,553
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
104
|
|
|
150
|
|
|
85
|
|
|||
Other investing activities
|
(126
|
)
|
|
(209
|
)
|
|
(40
|
)
|
|||
Net cash provided by (used in) investing activities
|
(2,385
|
)
|
|
(999
|
)
|
|
(6,186
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Issuances of debt
|
29,857
|
|
|
27,281
|
|
|
40,434
|
|
|||
Payments of debt
|
(28,768
|
)
|
|
(25,615
|
)
|
|
(37,738
|
)
|
|||
Issuances of stock
|
1,595
|
|
|
1,434
|
|
|
1,245
|
|
|||
Purchases of stock for treasury
|
(3,682
|
)
|
|
(3,681
|
)
|
|
(3,564
|
)
|
|||
Dividends
|
(6,320
|
)
|
|
(6,043
|
)
|
|
(5,741
|
)
|
|||
Other financing activities
|
(91
|
)
|
|
79
|
|
|
251
|
|
|||
Net cash provided by (used in) financing activities
|
(7,409
|
)
|
|
(6,545
|
)
|
|
(5,113
|
)
|
|||
CASH FLOWS FROM DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|||
Net cash provided by (used in) operating activities from discontinued operations
|
111
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities from discontinued operations
|
(65
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities from discontinued operations
|
(38
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) discontinued operations
|
8
|
|
|
—
|
|
|
—
|
|
|||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS
|
242
|
|
|
(6
|
)
|
|
(878
|
)
|
|||
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
||||||
Net increase (decrease) during the year
|
(2,549
|
)
|
|
1,246
|
|
|
(1,649
|
)
|
|||
Balance at beginning of year
|
8,555
|
|
|
7,309
|
|
|
8,958
|
|
|||
Balance at end of year
|
$
|
6,006
|
|
|
$
|
8,555
|
|
|
$
|
7,309
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
(In millions except per share data)
|
|
|
|
||||||||
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
|
|
|
|
|
||||||
NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
||||||
Balance at beginning of year
|
4,288
|
|
|
4,324
|
|
|
4,366
|
|
|||
Treasury stock issued to employees related to stock compensation plans
|
53
|
|
|
50
|
|
|
44
|
|
|||
Purchases of stock for treasury
|
(82
|
)
|
|
(86
|
)
|
|
(86
|
)
|
|||
Balance at end of year
|
4,259
|
|
|
4,288
|
|
|
4,324
|
|
|||
COMMON STOCK
|
$
|
1,760
|
|
|
$
|
1,760
|
|
|
$
|
1,760
|
|
CAPITAL SURPLUS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
14,993
|
|
|
14,016
|
|
|
13,154
|
|
|||
Stock issued to employees related to stock compensation plans
|
655
|
|
|
589
|
|
|
532
|
|
|||
Tax benefit (charge) from stock compensation plans
|
—
|
|
|
130
|
|
|
94
|
|
|||
Stock-based compensation expense
|
219
|
|
|
258
|
|
|
236
|
|
|||
Other activities
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at end of year
|
15,864
|
|
|
14,993
|
|
|
14,016
|
|
|||
REINVESTED EARNINGS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
65,502
|
|
|
65,018
|
|
|
63,408
|
|
|||
Net income attributable to shareowners of The Coca-Cola Company
|
1,248
|
|
|
6,527
|
|
|
7,351
|
|
|||
Dividends (per share — $1.48, $1.40 and $1.32 in 2017, 2016 and 2015, respectively)
|
(6,320
|
)
|
|
(6,043
|
)
|
|
(5,741
|
)
|
|||
Balance at end of year
|
60,430
|
|
|
65,502
|
|
|
65,018
|
|
|||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(11,205
|
)
|
|
(10,174
|
)
|
|
(5,777
|
)
|
|||
Net other comprehensive income (loss)
|
900
|
|
|
(1,031
|
)
|
|
(4,397
|
)
|
|||
Balance at end of year
|
(10,305
|
)
|
|
(11,205
|
)
|
|
(10,174
|
)
|
|||
TREASURY STOCK
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(47,988
|
)
|
|
(45,066
|
)
|
|
(42,225
|
)
|
|||
Treasury stock issued to employees related to stock compensation plans
|
909
|
|
|
811
|
|
|
696
|
|
|||
Purchases of stock for treasury
|
(3,598
|
)
|
|
(3,733
|
)
|
|
(3,537
|
)
|
|||
Balance at end of year
|
(50,677
|
)
|
|
(47,988
|
)
|
|
(45,066
|
)
|
|||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
17,072
|
|
|
$
|
23,062
|
|
|
$
|
25,554
|
|
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
158
|
|
|
$
|
210
|
|
|
$
|
241
|
|
Net income attributable to noncontrolling interests
|
35
|
|
|
23
|
|
|
15
|
|
|||
Net foreign currency translation adjustment
|
38
|
|
|
(13
|
)
|
|
(18
|
)
|
|||
Dividends paid to noncontrolling interests
|
(15
|
)
|
|
(25
|
)
|
|
(31
|
)
|
|||
Contributions by noncontrolling interests
|
—
|
|
|
1
|
|
|
—
|
|
|||
Business combinations
|
1,805
|
|
|
—
|
|
|
(3
|
)
|
|||
Deconsolidation of certain entities
|
(157
|
)
|
|
(34
|
)
|
|
—
|
|
|||
Other activities
|
41
|
|
|
(4
|
)
|
|
6
|
|
|||
TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
$
|
1,905
|
|
|
$
|
158
|
|
|
$
|
210
|
|
•
|
beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and
|
•
|
finished sparkling soft drinks and other nonalcoholic beverages (we refer to this part of our business as our "finished product business" or "finished product operations").
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
CONTINUING OPERATIONS
|
|
|
|
|
|
||||||
Net income from continuing operations
|
$
|
1,182
|
|
|
$
|
6,550
|
|
|
$
|
7,366
|
|
Less: Net income from continuing operations attributable to noncontrolling interests
|
1
|
|
|
23
|
|
|
15
|
|
|||
Net income from continuing operations attributable to shareowners of
The Coca-Cola Company
|
$
|
1,181
|
|
|
$
|
6,527
|
|
|
$
|
7,351
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
||||||
Net income from discontinued operations
|
$
|
101
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Less: Net income from discontinued operations attributable to noncontrolling interests
|
34
|
|
|
—
|
|
|
—
|
|
|||
Net income from discontinued operations attributable to shareowners of
The Coca-Cola Company |
$
|
67
|
|
|
$
|
—
|
|
|
$
|
—
|
|
CONSOLIDATED
|
|
|
|
|
|
||||||
Consolidated net income
|
$
|
1,283
|
|
|
$
|
6,550
|
|
|
$
|
7,366
|
|
Less: Net income attributable to noncontrolling interests
|
35
|
|
|
23
|
|
|
15
|
|
|||
Net income attributable to shareowners of The Coca-Cola Company
|
$
|
1,248
|
|
|
$
|
6,527
|
|
|
$
|
7,351
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Balance at beginning of year
|
$
|
466
|
|
|
$
|
352
|
|
|
$
|
331
|
|
Net charges to costs and expenses
1
|
32
|
|
|
126
|
|
|
45
|
|
|||
Write-offs
|
(10
|
)
|
|
(10
|
)
|
|
(10
|
)
|
|||
Other
2
|
(11
|
)
|
|
(2
|
)
|
|
(14
|
)
|
|||
Balance at end of year
|
$
|
477
|
|
|
$
|
466
|
|
|
$
|
352
|
|
1
|
The increases in 2016 were primarily related to concentrate sales receivables from our bottling partner in Venezuela. See Hyperinflationary Economies discussion below for additional information.
|
|
June 12, 2015
|
|
|
Equity investment in Monster
|
$
|
3,066
|
|
Expansion of distribution territories
|
1,035
|
|
|
Monster non-energy drink business
|
95
|
|
|
Total assets and business acquired
|
$
|
4,196
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
||
Cash, cash equivalents and short-term investments
|
$
|
13
|
|
|
$
|
49
|
|
|
Trade accounts receivable, less allowances
|
10
|
|
|
43
|
|
|
||
Inventories
|
11
|
|
|
264
|
|
|
||
Prepaid expenses and other assets
|
12
|
|
|
114
|
|
|
||
Equity method investments
|
—
|
|
|
1
|
|
|
||
Other investments
|
—
|
|
|
42
|
|
|
||
Other assets
|
7
|
|
|
17
|
|
|
||
Property, plant and equipment — net
|
85
|
|
|
1,780
|
|
|
||
Bottlers' franchise rights with indefinite lives
|
5
|
|
|
1,388
|
|
|
||
Goodwill
|
103
|
|
|
390
|
|
|
||
Other intangible assets
|
1
|
|
|
51
|
|
|
||
Allowance for reduction of assets held for sale
|
(28
|
)
|
|
(1,342
|
)
|
|
||
Assets held for sale
|
$
|
219
|
|
1
|
$
|
2,797
|
|
3
|
Accounts payable and accrued expenses
|
$
|
22
|
|
|
$
|
393
|
|
|
Accrued income taxes
|
—
|
|
|
13
|
|
|
||
Other liabilities
|
12
|
|
|
1
|
|
|
||
Deferred income taxes
|
3
|
|
|
303
|
|
|
||
Liabilities held for sale
|
$
|
37
|
|
2
|
$
|
710
|
|
4
|
1
|
Consists of total assets relating to North America refranchising of
$9 million
and Latin America bottling operations of
$210 million
, which are included in the Bottling Investments operating segment.
|
2
|
Consists of total liabilities relating to North America refranchising of
$5 million
and Latin America bottling operations of
$32 million
, which are included in the Bottling Investments operating segment.
|
3
|
Consists of total assets relating to North America refranchising of
$1,247 million
, China bottling operations of
$1,533 million
and other assets held for sale of
$17 million
, which are included in the Bottling Investments and Corporate operating segments.
|
4
|
Consists of total liabilities relating to North America refranchising of
$224 million
, China bottling operations of
$483 million
and other liabilities held for sale of
$3 million
, which are included in the Bottling Investments and Corporate operating segments.
|
|
December 31, 2017
|
|
|
Cash, cash equivalents and short-term investments
|
$
|
97
|
|
Trade accounts receivable, less allowances
|
299
|
|
|
Inventories
|
299
|
|
|
Prepaid expenses and other assets
|
52
|
|
|
Equity method investments
|
7
|
|
|
Other assets
|
29
|
|
|
Property, plant and equipment — net
|
1,436
|
|
|
Goodwill
|
4,248
|
|
|
Other intangible assets
|
862
|
|
|
Assets held for sale — discontinued operations
|
$
|
7,329
|
|
Accounts payable and accrued expenses
|
$
|
598
|
|
Loans and notes payable
|
404
|
|
|
Current maturities of long-term debt
|
6
|
|
|
Accrued income taxes
|
40
|
|
|
Long-term debt
|
19
|
|
|
Other liabilities
|
10
|
|
|
Deferred income taxes
|
419
|
|
|
Liabilities held for sale — discontinued operations
|
$
|
1,496
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Marketable securities
|
$
|
295
|
|
|
$
|
282
|
|
Other assets
|
112
|
|
|
102
|
|
||
Total
|
$
|
407
|
|
|
$
|
384
|
|
|
|
|
Gross Unrealized
|
|
Estimated Fair Value
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
|||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
1
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
1,276
|
|
|
$
|
685
|
|
|
$
|
(66
|
)
|
|
$
|
1,895
|
|
Debt securities
|
5,782
|
|
|
157
|
|
|
(27
|
)
|
|
5,912
|
|
||||
Total
|
$
|
7,058
|
|
|
$
|
842
|
|
|
$
|
(93
|
)
|
|
$
|
7,807
|
|
2016
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
1
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
1,252
|
|
|
$
|
425
|
|
|
$
|
(22
|
)
|
|
$
|
1,655
|
|
Debt securities
|
4,700
|
|
|
89
|
|
|
(31
|
)
|
|
4,758
|
|
||||
Total
|
$
|
5,952
|
|
|
$
|
514
|
|
|
$
|
(53
|
)
|
|
$
|
6,413
|
|
1
|
Refer to
Note 16
for additional information related to the estimated fair value.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Gross gains
|
$
|
68
|
|
|
$
|
152
|
|
|
$
|
103
|
|
Gross losses
|
(32
|
)
|
|
(51
|
)
|
|
(42
|
)
|
|||
Proceeds
|
14,205
|
|
|
11,540
|
|
|
4,043
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Cash and cash equivalents
|
$
|
667
|
|
|
$
|
682
|
|
Marketable securities
|
5,022
|
|
|
3,769
|
|
||
Other investments
|
953
|
|
|
849
|
|
||
Other assets
|
1,165
|
|
|
1,113
|
|
||
Total
|
$
|
7,807
|
|
|
$
|
6,413
|
|
|
Cost
|
|
|
Estimated Fair Value
|
|
||
Within 1 year
|
$
|
1,433
|
|
|
$
|
1,491
|
|
After 1 year through 5 years
|
3,929
|
|
|
3,983
|
|
||
After 5 years through 10 years
|
103
|
|
|
117
|
|
||
After 10 years
|
317
|
|
|
321
|
|
||
Equity securities
|
1,276
|
|
|
1,895
|
|
||
Total
|
$
|
7,058
|
|
|
$
|
7,807
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Raw materials and packaging
|
$
|
1,729
|
|
|
$
|
1,565
|
|
Finished goods
|
693
|
|
|
844
|
|
||
Other
|
233
|
|
|
266
|
|
||
Total inventories
|
$
|
2,655
|
|
|
$
|
2,675
|
|
|
|
|
Fair Value
1,2
|
||||||
Derivatives Designated as Hedging Instruments
|
Balance Sheet Location
1
|
|
December 31,
2017 |
|
|
December 31,
2016 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
45
|
|
|
$
|
400
|
|
Foreign currency contracts
|
Other assets
|
|
79
|
|
|
60
|
|
||
Interest rate contracts
|
Other assets
|
|
52
|
|
|
105
|
|
||
Total assets
|
|
|
$
|
176
|
|
|
$
|
565
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
69
|
|
|
$
|
40
|
|
Foreign currency contracts
|
Other liabilities
|
|
9
|
|
|
54
|
|
||
Foreign currency contracts
|
Liabilities held for sale — discontinued operations
|
|
8
|
|
|
—
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
|
—
|
|
|
1
|
|
||
Commodity contracts
|
Liabilities held for sale — discontinued operations
|
|
4
|
|
|
—
|
|
||
Interest rate contracts
|
Accounts payable and accrued expenses
|
|
30
|
|
|
36
|
|
||
Interest rate contracts
|
Other liabilities
|
|
39
|
|
|
47
|
|
||
Total liabilities
|
|
|
$
|
159
|
|
|
$
|
178
|
|
1
|
All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to
Note 16
for the net presentation of the Company's derivative instruments.
|
2
|
Refer to
Note 16
for additional information related to the estimated fair value.
|
|
|
|
Fair Value
1,2
|
||||||
Derivatives Not Designated as Hedging Instruments
|
Balance Sheet Location
1
|
|
December 31,
2017 |
|
|
December 31,
2016 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
20
|
|
|
$
|
284
|
|
Foreign currency contracts
|
Other assets
|
|
27
|
|
|
—
|
|
||
Commodity contracts
|
Prepaid expenses and other assets
|
|
25
|
|
|
27
|
|
||
Commodity contracts
|
Other assets
|
|
1
|
|
|
1
|
|
||
Other derivative instruments
|
Prepaid expenses and other assets
|
|
8
|
|
|
4
|
|
||
Other derivative instruments
|
Other assets
|
|
—
|
|
|
1
|
|
||
Total assets
|
|
|
$
|
81
|
|
|
$
|
317
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
69
|
|
|
$
|
60
|
|
Foreign currency contracts
|
Other liabilities
|
|
28
|
|
|
16
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
|
7
|
|
|
16
|
|
||
Commodity contracts
|
Other liabilities
|
|
—
|
|
|
1
|
|
||
Interest rate contracts
|
Accounts payable and accrued expenses
|
|
—
|
|
|
8
|
|
||
Interest rate contracts
|
Other liabilities
|
|
—
|
|
|
1
|
|
||
Other derivative instruments
|
Accounts payable and accrued expenses
|
|
1
|
|
|
2
|
|
||
Other derivative instruments
|
Other liabilities
|
|
1
|
|
|
5
|
|
||
Total liabilities
|
|
|
$
|
106
|
|
|
$
|
109
|
|
1
|
All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to
Note 16
for the net presentation of the Company's derivative instruments.
|
2
|
Refer to
Note 16
for additional information related to the estimated fair value.
|
|
Gain (Loss)
Recognized
in OCI
|
|
|
Location of Gain (Loss)
Recognized in Income
1
|
|
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
|
Gain (Loss)
Recognized in Income
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
|
|
|
|||
2017
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
(226
|
)
|
|
Net operating revenues
|
|
$
|
443
|
|
|
$
|
1
|
|
|
Foreign currency contracts
|
(23
|
)
|
|
Cost of goods sold
|
|
(2
|
)
|
|
—
|
|
2
|
|||
Foreign currency contracts
|
—
|
|
|
Interest expense
|
|
(9
|
)
|
|
—
|
|
|
|||
Foreign currency contracts
|
92
|
|
|
Other income (loss) — net
|
|
107
|
|
|
3
|
|
|
|||
Foreign currency contracts
|
(3
|
)
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
|||
Interest rate contracts
|
(22
|
)
|
|
Interest expense
|
|
(37
|
)
|
|
2
|
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
(1
|
)
|
|
—
|
|
|
|||
Commodity contracts
|
(5
|
)
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
|||
Total
|
$
|
(188
|
)
|
|
|
|
$
|
501
|
|
|
$
|
6
|
|
|
2016
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
69
|
|
|
Net operating revenues
|
|
$
|
567
|
|
|
$
|
(3
|
)
|
|
Foreign currency contracts
|
8
|
|
|
Cost of goods sold
|
|
35
|
|
|
(1
|
)
|
|
|||
Foreign currency contracts
|
—
|
|
|
Interest expense
|
|
(9
|
)
|
|
—
|
|
|
|||
Foreign currency contracts
|
13
|
|
|
Other income (loss) — net
|
|
(3
|
)
|
|
(3
|
)
|
|
|||
Interest rate contracts
|
(126
|
)
|
|
Interest expense
|
|
(17
|
)
|
|
(2
|
)
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
(1
|
)
|
|
—
|
|
|
|||
Total
|
$
|
(37
|
)
|
|
|
|
$
|
572
|
|
|
$
|
(9
|
)
|
|
2015
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
949
|
|
|
Net operating revenues
|
|
$
|
618
|
|
|
$
|
12
|
|
|
Foreign currency contracts
|
60
|
|
|
Cost of goods sold
|
|
62
|
|
|
—
|
|
2
|
|||
Foreign currency contracts
|
18
|
|
|
Interest expense
|
|
(9
|
)
|
|
—
|
|
|
|||
Foreign currency contracts
|
(38
|
)
|
|
Other income (loss) — net
|
|
(40
|
)
|
|
—
|
|
|
|||
Interest rate contracts
|
(153
|
)
|
|
Interest expense
|
|
(3
|
)
|
|
1
|
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
(3
|
)
|
|
—
|
|
|
|||
Total
|
$
|
835
|
|
|
|
|
$
|
625
|
|
|
$
|
13
|
|
|
1
|
The Company records gains and losses reclassified from AOCI into income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income.
|
2
|
Includes a de minimis amount of ineffectiveness in the hedging relationship.
|
Hedging Instruments and Hedged Items
|
Location of Gain (Loss)
Recognized in Income
|
Gain (Loss)
Recognized in Income
1
|
|
|
2017
|
|
|
||
Interest rate contracts
|
Interest expense
|
$
|
(69
|
)
|
Fixed-rate debt
|
Interest expense
|
63
|
|
|
Net impact to interest expense
|
|
$
|
(6
|
)
|
Foreign currency contracts
|
Other income (loss) — net
|
$
|
(37
|
)
|
Available-for-sale securities
|
Other income (loss) — net
|
44
|
|
|
Net impact to other income (loss) — net
|
|
$
|
7
|
|
Net impact of fair value hedging instruments
|
|
$
|
1
|
|
2016
|
|
|
||
Interest rate contracts
|
Interest expense
|
$
|
170
|
|
Fixed-rate debt
|
Interest expense
|
(152
|
)
|
|
Net impact to interest expense
|
|
$
|
18
|
|
Foreign currency contracts
|
Other income (loss) — net
|
$
|
69
|
|
Available-for-sale securities
|
Other income (loss) — net
|
(73
|
)
|
|
Net impact to other income (loss) — net
|
|
$
|
(4
|
)
|
Net impact of fair value hedging instruments
|
|
$
|
14
|
|
2015
|
|
|
||
Interest rate contracts
|
Interest expense
|
$
|
(172
|
)
|
Fixed-rate debt
|
Interest expense
|
169
|
|
|
Net impact to interest expense
|
|
$
|
(3
|
)
|
Foreign currency contracts
|
Other income (loss) — net
|
$
|
110
|
|
Available-for-sale securities
|
Other income (loss) — net
|
(131
|
)
|
|
Net impact to other income (loss) — net
|
|
$
|
(21
|
)
|
Net impact of fair value hedging instruments
|
|
$
|
(24
|
)
|
|
Notional Amount
|
|
Gain (Loss) Recognized in OCI
|
|||||||||||||
|
as of December 31,
|
|
Year Ended December 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
2015
|
|
|||||
Foreign currency contracts
|
$
|
—
|
|
$
|
100
|
|
|
$
|
(7
|
)
|
$
|
(237
|
)
|
$
|
661
|
|
Foreign currency denominated debt
|
13,147
|
|
11,113
|
|
|
(1,505
|
)
|
304
|
|
(24
|
)
|
|||||
Total
|
$
|
13,147
|
|
$
|
11,213
|
|
|
$
|
(1,512
|
)
|
$
|
67
|
|
$
|
637
|
|
Derivatives Not Designated
as Hedging Instruments
|
Location of Gain (Loss)
Recognized in Income
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||||
Foreign currency contracts
|
Net operating revenues
|
|
$
|
(30
|
)
|
|
$
|
(45
|
)
|
|
$
|
41
|
|
Foreign currency contracts
|
Cost of goods sold
|
|
(1
|
)
|
|
4
|
|
|
3
|
|
|||
Foreign currency contracts
|
Other income (loss) — net
|
|
73
|
|
|
(168
|
)
|
|
(92
|
)
|
|||
Commodity contracts
|
Net operating revenues
|
|
16
|
|
|
10
|
|
|
(16
|
)
|
|||
Commodity contracts
|
Cost of goods sold
|
|
15
|
|
|
75
|
|
|
(209
|
)
|
|||
Commodity contracts
|
Selling, general and administrative expenses
|
|
1
|
|
|
6
|
|
|
(25
|
)
|
|||
Interest rate contracts
|
Interest expense
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|||
Other derivative instruments
|
Selling, general and administrative expenses
|
|
46
|
|
|
16
|
|
|
1
|
|
|||
Other derivative instruments
|
Other income (loss) — net
|
|
1
|
|
|
(15
|
)
|
|
(37
|
)
|
|||
Total
|
|
|
$
|
121
|
|
|
$
|
(156
|
)
|
|
$
|
(334
|
)
|
Year Ended December 31,
1
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Net operating revenues
|
$
|
73,339
|
|
|
$
|
58,054
|
|
|
$
|
47,498
|
|
Cost of goods sold
|
42,867
|
|
|
34,338
|
|
|
28,749
|
|
|||
Gross profit
|
$
|
30,472
|
|
|
$
|
23,716
|
|
|
$
|
18,749
|
|
Operating income
|
$
|
7,577
|
|
|
$
|
5,652
|
|
|
$
|
4,483
|
|
Consolidated net income
|
$
|
4,545
|
|
|
$
|
2,967
|
|
|
$
|
2,299
|
|
Less: Net income attributable to noncontrolling interests
|
120
|
|
|
78
|
|
|
65
|
|
|||
Net income attributable to common shareowners
|
$
|
4,425
|
|
|
$
|
2,889
|
|
|
$
|
2,234
|
|
Equity income (loss) — net
|
$
|
1,071
|
|
|
$
|
835
|
|
|
$
|
489
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Current assets
|
$
|
25,023
|
|
|
$
|
19,586
|
|
Noncurrent assets
|
66,578
|
|
|
58,529
|
|
||
Total assets
|
$
|
91,601
|
|
|
$
|
78,115
|
|
Current liabilities
|
$
|
17,890
|
|
|
$
|
16,125
|
|
Noncurrent liabilities
|
29,986
|
|
|
25,610
|
|
||
Total liabilities
|
$
|
47,876
|
|
|
$
|
41,735
|
|
Equity attributable to shareowners of investees
|
$
|
41,773
|
|
|
$
|
35,204
|
|
Equity attributable to noncontrolling interests
|
1,952
|
|
|
1,176
|
|
||
Total equity
|
$
|
43,725
|
|
|
$
|
36,380
|
|
Company equity investment
|
$
|
20,856
|
|
|
$
|
16,260
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Land
|
$
|
334
|
|
|
$
|
589
|
|
Buildings and improvements
|
3,917
|
|
|
4,574
|
|
||
Machinery, equipment and vehicle fleet
|
12,198
|
|
|
16,093
|
|
||
|
16,449
|
|
|
21,256
|
|
||
Less accumulated depreciation
|
8,246
|
|
|
10,621
|
|
||
Property, plant and equipment — net
|
$
|
8,203
|
|
|
$
|
10,635
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Trademarks
1
|
$
|
6,729
|
|
|
$
|
6,097
|
|
Bottlers' franchise rights
2
|
138
|
|
|
3,676
|
|
||
Goodwill
|
9,401
|
|
|
10,629
|
|
||
Other
|
106
|
|
|
128
|
|
||
Indefinite-lived intangible assets
|
$
|
16,374
|
|
|
$
|
20,530
|
|
|
Europe, Middle East & Africa
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Asia Pacific
|
|
|
Bottling
Investments
|
|
|
Total
|
|
||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at beginning of year
|
$
|
638
|
|
|
$
|
123
|
|
|
$
|
8,311
|
|
|
$
|
133
|
|
|
$
|
2,084
|
|
|
$
|
11,289
|
|
Effect of foreign currency translation
|
(10
|
)
|
|
(6
|
)
|
|
—
|
|
|
(11
|
)
|
|
(6
|
)
|
|
(33
|
)
|
||||||
Acquisitions
1
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
Adjustments related to the finalization
of purchase accounting
1
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||
Divestitures, deconsolidations and other
1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(633
|
)
|
|
(633
|
)
|
||||||
Balance at end of year
|
$
|
628
|
|
|
$
|
117
|
|
|
$
|
8,321
|
|
|
$
|
128
|
|
|
$
|
1,435
|
|
|
$
|
10,629
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at beginning of year
|
$
|
628
|
|
|
$
|
117
|
|
|
$
|
8,321
|
|
|
$
|
128
|
|
|
$
|
1,435
|
|
|
$
|
10,629
|
|
Effect of foreign currency translation
|
75
|
|
|
8
|
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
87
|
|
||||||
Acquisitions
1
|
—
|
|
|
25
|
|
|
28
|
|
|
—
|
|
|
3
|
|
|
56
|
|
||||||
Adjustments related to the finalization
of purchase accounting
1
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(390
|
)
|
|
(390
|
)
|
||||||
Divestitures, deconsolidations and other
1,2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(999
|
)
|
|
(999
|
)
|
||||||
Balance at end of year
|
$
|
703
|
|
|
$
|
150
|
|
|
$
|
8,349
|
|
|
$
|
145
|
|
|
$
|
54
|
|
|
$
|
9,401
|
|
1
|
Refer to
Note 2
for information related to the Company's acquisitions and divestitures.
|
2
|
The 2017 decrease in the Bottling Investments segment was primarily a result of additional North America bottling territories being refranchised. Refer to
Note 2
.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
||||||
Customer relationships
1
|
$
|
205
|
|
$
|
(143
|
)
|
$
|
62
|
|
|
$
|
392
|
|
$
|
(185
|
)
|
$
|
207
|
|
Bottlers' franchise rights
1
|
213
|
|
(152
|
)
|
61
|
|
|
487
|
|
(381
|
)
|
106
|
|
||||||
Trademarks
|
182
|
|
(73
|
)
|
109
|
|
|
228
|
|
(64
|
)
|
164
|
|
||||||
Other
|
94
|
|
(64
|
)
|
30
|
|
|
179
|
|
(58
|
)
|
121
|
|
||||||
Total
|
$
|
694
|
|
$
|
(432
|
)
|
$
|
262
|
|
|
$
|
1,286
|
|
$
|
(688
|
)
|
$
|
598
|
|
1
|
The decrease in 2017 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to
Note 2
.
|
|
|
Amortization
Expense
|
|
|
2018
|
|
$
|
57
|
|
2019
|
|
44
|
|
|
2020
|
|
38
|
|
|
2021
|
|
28
|
|
|
2022
|
|
28
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Accrued marketing
|
$
|
2,108
|
|
|
$
|
2,186
|
|
Trade accounts payable
|
2,288
|
|
|
2,682
|
|
||
Other accrued expenses
|
3,071
|
|
|
2,593
|
|
||
Accrued compensation
|
854
|
|
|
857
|
|
||
Deferred tax liabilities
|
—
|
|
1
|
692
|
|
||
Sales, payroll and other taxes
|
347
|
|
|
372
|
|
||
Container deposits
|
80
|
|
|
108
|
|
||
Accounts payable and accrued expenses
|
$
|
8,748
|
|
|
$
|
9,490
|
|
1
|
As a result of our adoption of ASU 2015-17, all deferred tax liabilities are now recorded in noncurrent liabilities. Refer to Note 1.
|
•
|
$500 million
total principal amount of notes due May 25, 2022, at a fixed interest rate of
2.20 percent
;
|
•
|
$500 million
total principal amount of notes due May 25, 2027, at a fixed interest rate of
2.90 percent
;
|
•
|
€1,500 million
total principal amount of notes due March 8, 2019, at a variable interest rate equal to the
three
-month Euro Interbank Offered Rate ("EURIBOR") plus
0.25 percent
;
|
•
|
€500 million
total principal amount of notes due March 9, 2021, at a fixed interest rate of
0.00 percent
; and
|
•
|
€500 million
total principal amount of notes due March 8, 2024, at a fixed interest rate of
0.50 percent
.
|
•
|
$95.6 million
total principal amount of notes due August 15, 2019, at a fixed interest rate of
4.50 percent
;
|
•
|
$38.6 million
total principal amount of notes due February 1, 2022, at a fixed interest rate of
8.50 percent
;
|
•
|
$11.7 million
total principal amount of notes due September 15, 2022, at a fixed interest rate of
8.00 percent
;
|
•
|
$36.5 million
total principal amount of notes due September 15, 2023, at a fixed interest rate of
6.75 percent
;
|
•
|
$9.9 million
total principal amount of notes due October 1, 2026, at a fixed interest rate of
7.00 percent
;
|
•
|
$53.8 million
total principal amount of notes due November 15, 2026, at a fixed interest rate of
6.95 percent
;
|
•
|
$41.3 million
total principal amount of notes due September 15, 2028, at a fixed interest rate of
6.75 percent
;
|
•
|
$32.0 million
total principal amount of notes due October 15, 2036, at a fixed interest rate of
6.70 percent
;
|
•
|
$3.4 million
total principal amount of notes due March 18, 2037, at a fixed interest rate of
5.71 percent
;
|
•
|
$24.3 million
total principal amount of notes due January 15, 2038, at a fixed interest rate of
6.75 percent
; and
|
•
|
$4.7 million
total principal amount of notes due May 15, 2098, at a fixed interest rate of
7.00 percent
.
|
•
|
AUD
450 million
total principal amount of notes due June 9, 2020, at a fixed interest rate of
2.60 percent
;
|
•
|
AUD
550 million
total principal amount of notes due June 11, 2024, at a fixed interest rate of
3.25 percent
;
|
•
|
$225 million
total principal amount of notes due November 16, 2017, at a variable interest rate equal to the
three
-month LIBOR plus
0.05 percent
;
|
•
|
$1,000 million
total principal amount of notes due May 30, 2019, at a fixed interest rate of
1.375 percent
;
|
•
|
$1,000 million
total principal amount of notes due September 1, 2021, at a fixed interest rate of
1.55 percent
;
|
•
|
$500 million
total principal amount of notes due June 1, 2026, at a fixed interest rate of
2.55 percent
;
|
•
|
$1,000 million
total principal amount of notes due September 1, 2026, at a fixed interest rate of
2.25 percent
; and
|
•
|
€500 million
total principal amount of notes due September 2, 2036, at a fixed interest rate of
1.10 percent
.
|
•
|
SFr
200 million
total principal amount of notes due October 2, 2017, at a fixed interest rate of
0.00 percent
;
|
•
|
SFr
550 million
total principal amount of notes due December 22, 2022, at a fixed interest rate of
0.25 percent
;
|
•
|
SFr
575 million
total principal amount of notes due October 2, 2028, at a fixed interest rate of
1.00 percent
;
|
•
|
€
2,000 million
total principal amount of notes due March 9, 2017, at a variable interest rate equal to the
three
-month EURIBOR plus
0.15 percent
;
|
•
|
€
2,000 million
total principal amount of notes due September 9, 2019, at a variable interest rate equal to the
three
-month EURIBOR plus
0.23 percent
;
|
•
|
€
1,500 million
total principal amount of notes due March 9, 2023, at a fixed interest rate of
0.75 percent
;
|
•
|
€
1,500 million
total principal amount of notes due March 9, 2027, at a fixed interest rate of
1.125 percent
;
|
•
|
€
1,500 million
total principal amount of notes due March 9, 2035, at a fixed interest rate of
1.625 percent
;
|
•
|
$750 million
total principal amount of notes due October 27, 2017, at a fixed interest rate of
0.875 percent
;
|
•
|
$1,500 million
total principal amount of notes due October 27, 2020, at a fixed interest rate of
1.875 percent
; and
|
•
|
$1,750 million
total principal amount of notes due October 27, 2025, at a fixed interest rate of
2.875 percent
.
|
•
|
$1,148 million
total principal amount of notes due November 15, 2017, at a fixed interest rate of
5.35 percent
; and
|
•
|
$891 million
total principal amount of notes due March 15, 2019, at a fixed interest rate of
4.875 percent
.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||
|
Amount
|
|
|
Average
Rate
1
|
|
|
Amount
|
|
|
Average
Rate
1
|
|
||
U.S. dollar notes due 2018–2093
|
$
|
16,854
|
|
|
2.3
|
%
|
|
$
|
16,922
|
|
|
2.0
|
%
|
U.S. dollar debentures due 2018–2098
|
1,559
|
|
|
5.5
|
|
|
2,111
|
|
|
4.1
|
|
||
U.S. dollar zero coupon notes due 2020
2
|
158
|
|
|
8.4
|
|
|
153
|
|
|
8.4
|
|
||
Australian dollar notes due 2020–2024
|
760
|
|
|
2.1
|
|
|
741
|
|
|
1.2
|
|
||
Euro notes due 2019–2036
|
13,663
|
|
|
0.7
|
|
|
11,567
|
|
|
0.7
|
|
||
Swiss franc notes due 2022–2028
|
1,148
|
|
|
3.0
|
|
|
1,304
|
|
|
2.5
|
|
||
Other, due through 2098
3
|
325
|
|
|
3.4
|
|
|
316
|
|
|
3.5
|
|
||
Fair value adjustment
4
|
13
|
|
|
N/A
|
|
|
97
|
|
|
N/A
|
|
||
Total
5,6
|
34,480
|
|
|
1.8
|
%
|
|
33,211
|
|
|
1.7
|
%
|
||
Less current portion
|
3,298
|
|
|
|
|
|
3,527
|
|
|
|
|
||
Long-term debt
|
$
|
31,182
|
|
|
|
|
|
$
|
29,684
|
|
|
|
|
1
|
These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements, cross-currency swap agreements and fair value adjustments, if applicable. Refer to
Note 5
for a more detailed discussion on interest rate management.
|
2
|
This amount is shown net of unamortized discounts of $
13 million
and $
18 million
as of
December 31, 2017
and
2016
, respectively.
|
3
|
As of
December 31, 2017
, the amount shown includes $
165 million
of debt instruments that are due through
2031
.
|
4
|
Amount represents changes in fair value due to changes in benchmark interest rates. Refer to
Note 5
for additional information about our fair value hedging strategy.
|
5
|
As of
December 31, 2017
and
2016
, the fair value of our long-term debt, including the current portion, was $
35,169 million
and $
33,752 million
, respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments.
|
6
|
The above notes and debentures include various restrictions, none of which is presently significant to our Company.
|
|
Maturities of
Long-Term Debt
|
|
|
2018
|
$
|
3,298
|
|
2019
|
5,209
|
|
|
2020
|
4,298
|
|
|
2021
|
2,930
|
|
|
2022
|
2,480
|
|
Year Ended December 31,
|
Operating Lease Payments
|
|
|
2018
|
$
|
130
|
|
2019
|
85
|
|
|
2020
|
69
|
|
|
2021
|
59
|
|
|
2022
|
52
|
|
|
Thereafter
|
147
|
|
|
Total minimum operating lease payments
1
|
$
|
542
|
|
1
|
Income associated with sublease arrangements is not significant.
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Fair value of stock options at grant date
|
$
|
3.98
|
|
|
$
|
4.17
|
|
|
$
|
4.38
|
|
Dividend yield
1
|
3.6
|
%
|
|
3.2
|
%
|
|
3.1
|
%
|
|||
Expected volatility
2
|
15.5
|
%
|
|
16.0
|
%
|
|
16.0
|
%
|
|||
Risk-free interest rate
3
|
2.2
|
%
|
|
1.5
|
%
|
|
1.8
|
%
|
|||
Expected term of the stock options
4
|
6 years
|
|
|
6 years
|
|
|
6 years
|
|
1
|
The dividend yield is the calculated yield on the Company's stock at the time of the grant.
|
2
|
Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors.
|
3
|
The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
|
4
|
The expected term of the stock options represents the period of time that options granted are expected to be outstanding and is derived by analyzing historical exercise behavior.
|
1
|
Includes
0.3 million
stock option replacement awards in connection with our acquisition of Old CCE's North America business in 2010. These options had a weighted-average exercise price of $
12.86
and generally vest over
3
years and expire
10
years from the original date of grant.
|
1
|
Represents the target amount of performance share units converted to restricted stock units for the 2014–2016 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements.
|
2
|
The outstanding performance share units as of
December 31, 2017
, at the threshold award and maximum award levels were
2.2 million
and
15.4 million
, respectively.
|
|
Restricted
Stock Units (In thousands) |
|
|
Weighted-
Average Grant Date Fair Value |
|
|
Nonvested on January 1, 2017
|
—
|
|
|
$
|
—
|
|
Conversions from performance share units
|
7,181
|
|
|
32.33
|
|
|
Vested and released
|
(3
|
)
|
|
32.35
|
|
|
Canceled/forfeited
|
(430
|
)
|
|
32.30
|
|
|
Nonvested on December 31, 2017
|
6,748
|
|
|
$
|
32.35
|
|
|
Restricted Stock and Stock Units (In thousands)
|
|
|
Weighted-Average
Grant Date Fair Value |
|
|
Outstanding on January 1, 2017
|
770
|
|
|
$
|
37.54
|
|
Granted
|
2,994
|
|
|
41.62
|
|
|
Vested and released
|
(179
|
)
|
|
37.36
|
|
|
Forfeited/expired
|
(50
|
)
|
|
38.35
|
|
|
Outstanding on December 31, 2017
|
3,535
|
|
|
$
|
40.99
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Benefit obligation at beginning of year
1
|
$
|
9,428
|
|
|
$
|
9,159
|
|
|
$
|
962
|
|
|
$
|
940
|
|
Service cost
|
197
|
|
|
239
|
|
|
17
|
|
|
22
|
|
||||
Interest cost
|
306
|
|
|
319
|
|
|
29
|
|
|
31
|
|
||||
Foreign currency exchange rate changes
|
150
|
|
|
(38
|
)
|
|
4
|
|
|
(2
|
)
|
||||
Amendments
|
1
|
|
|
17
|
|
|
(21
|
)
|
|
(4
|
)
|
||||
Actuarial loss (gain)
|
420
|
|
|
441
|
|
|
(28
|
)
|
|
20
|
|
||||
Benefits paid
2
|
(341
|
)
|
|
(346
|
)
|
|
(71
|
)
|
|
(64
|
)
|
||||
Divestitures
3
|
(7
|
)
|
|
(16
|
)
|
|
(66
|
)
|
|
(2
|
)
|
||||
Settlements
4
|
(832
|
)
|
|
(384
|
)
|
|
—
|
|
|
—
|
|
||||
Curtailments
4
|
(10
|
)
|
|
—
|
|
|
(48
|
)
|
|
(17
|
)
|
||||
Special termination benefits
4
|
106
|
|
|
37
|
|
|
—
|
|
|
2
|
|
||||
Other
|
37
|
|
|
—
|
|
|
4
|
|
|
36
|
|
||||
Benefit obligation at end of year
1
|
$
|
9,455
|
|
|
$
|
9,428
|
|
|
$
|
782
|
|
|
$
|
962
|
|
Fair value of plan assets at beginning of year
|
$
|
8,371
|
|
|
$
|
7,689
|
|
|
$
|
255
|
|
|
$
|
245
|
|
Actual return on plan assets
|
1,139
|
|
|
690
|
|
|
31
|
|
|
8
|
|
||||
Employer contributions
|
181
|
|
|
718
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency exchange rate changes
|
196
|
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(285
|
)
|
|
(270
|
)
|
|
(3
|
)
|
|
(3
|
)
|
||||
Divestitures
3
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
4
|
(794
|
)
|
|
(374
|
)
|
|
—
|
|
|
—
|
|
||||
Other
|
35
|
|
|
4
|
|
|
5
|
|
|
5
|
|
||||
Fair value of plan assets at end of year
|
$
|
8,843
|
|
|
$
|
8,371
|
|
|
$
|
288
|
|
|
$
|
255
|
|
Net liability recognized
|
$
|
(612
|
)
|
|
$
|
(1,057
|
)
|
|
$
|
(494
|
)
|
|
$
|
(707
|
)
|
1
|
For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was
$9,175 million
and
$9,141 million
as of
December 31, 2017
and
2016
, respectively.
|
2
|
Benefits paid to pension plan participants during
2017
and
2016
included
$56 million
and
$76 million
, respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during
2017
and
2016
included
$68 million
and
$61 million
, respectively, that were paid from Company assets.
|
3
|
Divestitures were primarily related to the deconsolidation of the Company's German bottling operations in May 2016 and the Company's North America refranchising in 2017. Refer to Note 2.
|
4
|
Settlements, curtailments and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and Note 18.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Noncurrent asset
|
$
|
921
|
|
|
$
|
572
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liability
|
(72
|
)
|
|
(71
|
)
|
|
(21
|
)
|
|
(23
|
)
|
||||
Long-term liability
|
(1,461
|
)
|
|
(1,558
|
)
|
|
(473
|
)
|
|
(684
|
)
|
||||
Net liability recognized
|
$
|
(612
|
)
|
|
$
|
(1,057
|
)
|
|
$
|
(494
|
)
|
|
$
|
(707
|
)
|
December 31,
|
2017
|
|
|
2016
|
|
||
Projected benefit obligation
|
$
|
7,833
|
|
|
$
|
7,907
|
|
Fair value of plan assets
|
6,330
|
|
|
6,303
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Accumulated benefit obligation
|
$
|
7,614
|
|
|
$
|
7,668
|
|
Fair value of plan assets
|
6,305
|
|
|
6,257
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Cash and cash equivalents
|
$
|
454
|
|
|
$
|
229
|
|
|
$
|
237
|
|
|
$
|
173
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
U.S.-based companies
|
1,427
|
|
|
1,208
|
|
|
670
|
|
|
619
|
|
||||
International-based companies
|
911
|
|
|
451
|
|
|
554
|
|
|
488
|
|
||||
Fixed-income securities:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
183
|
|
|
395
|
|
|
191
|
|
|
131
|
|
||||
Corporate bonds and debt securities
|
785
|
|
|
854
|
|
|
42
|
|
|
142
|
|
||||
Mutual, pooled and commingled funds
1
|
215
|
|
|
693
|
|
|
766
|
|
|
440
|
|
||||
Hedge funds/limited partnerships
|
939
|
|
|
1,172
|
|
|
44
|
|
|
41
|
|
||||
Real estate
|
596
|
|
|
521
|
|
|
2
|
|
|
2
|
|
||||
Other
|
518
|
|
|
538
|
|
|
309
|
|
|
274
|
|
||||
Total pension plan assets
2
|
$
|
6,028
|
|
|
$
|
6,061
|
|
|
$
|
2,815
|
|
|
$
|
2,310
|
|
1
|
Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans.
|
2
|
Fair value disclosures related to our pension assets are included in
Note 16
. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension assets.
|
(1)
|
optimize the long-term return on plan assets at an acceptable level of risk;
|
(2)
|
maintain a broad diversification across asset classes and among investment managers; and
|
(3)
|
maintain careful control of the risk level within each asset class.
|
December 31,
|
2017
|
|
|
2016
|
|
||
Cash and cash equivalents
|
$
|
78
|
|
|
$
|
2
|
|
Equity securities:
|
|
|
|
||||
U.S.-based companies
|
96
|
|
|
116
|
|
||
International-based companies
|
8
|
|
|
8
|
|
||
Fixed-income securities:
|
|
|
|
||||
Government bonds
|
2
|
|
|
3
|
|
||
Corporate bonds and debt securities
|
7
|
|
|
6
|
|
||
Mutual, pooled and commingled funds
|
80
|
|
|
103
|
|
||
Hedge funds/limited partnerships
|
8
|
|
|
9
|
|
||
Real estate
|
5
|
|
|
4
|
|
||
Other
|
4
|
|
|
4
|
|
||
Total other postretirement benefit plan assets
1
|
$
|
288
|
|
|
$
|
255
|
|
1
|
Fair value disclosures related to our other postretirement benefit plan assets are included in
Note 16
. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
||||||
Service cost
|
$
|
197
|
|
|
$
|
239
|
|
|
$
|
265
|
|
|
$
|
17
|
|
|
$
|
22
|
|
|
$
|
27
|
|
Interest cost
|
306
|
|
|
319
|
|
|
379
|
|
|
29
|
|
|
31
|
|
|
37
|
|
||||||
Expected return on plan assets
1
|
(650
|
)
|
|
(653
|
)
|
|
(705
|
)
|
|
(12
|
)
|
|
(11
|
)
|
|
(11
|
)
|
||||||
Amortization of prior service credit
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(19
|
)
|
|
(19
|
)
|
||||||
Amortization of actuarial loss
2
|
175
|
|
|
183
|
|
|
199
|
|
|
8
|
|
|
7
|
|
|
10
|
|
||||||
Net periodic benefit cost
|
28
|
|
|
86
|
|
|
136
|
|
|
24
|
|
|
30
|
|
|
44
|
|
||||||
Settlement charges
3
|
228
|
|
|
118
|
|
|
149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailment charge (credit)
3
|
4
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
—
|
|
|
—
|
|
||||||
Special termination benefits
3
|
106
|
|
|
37
|
|
|
20
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||
Other
|
2
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
||||||
Total cost (income) recognized in consolidated statements of income
|
$
|
368
|
|
|
$
|
238
|
|
|
$
|
305
|
|
|
$
|
(55
|
)
|
|
$
|
54
|
|
|
$
|
46
|
|
1
|
The Company has elected to use the actual fair value of plan assets as the market-related value of assets in the determination of the expected return on plan assets.
|
2
|
Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to
10 percent
of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants.
|
3
|
The settlement charges, curtailment charge (credit) and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and
Note 18
.
|
|
Pension Benefits
|
|
Other Benefits
|
|
||||||||||||
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
||||
Balance in AOCI at beginning of year
|
$
|
(2,932
|
)
|
|
$
|
(2,907
|
)
|
|
$
|
(48
|
)
|
|
$
|
(26
|
)
|
|
Recognized prior service cost (credit)
|
4
|
|
|
(2
|
)
|
|
(54
|
)
|
4
|
(28
|
)
|
5
|
||||
Recognized net actuarial loss (gain)
|
403
|
|
2
|
301
|
|
3
|
(36
|
)
|
4
|
7
|
|
|
||||
Prior service credit (cost) arising in current year
|
(1
|
)
|
|
(17
|
)
|
|
21
|
|
|
4
|
|
|
||||
Net actuarial (loss) gain arising in current year
|
75
|
|
|
(404
|
)
|
|
92
|
|
4
|
(6
|
)
|
5
|
||||
Impact of divestitures
1
|
—
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
||||
Foreign currency translation gain (loss)
|
(42
|
)
|
|
33
|
|
|
(1
|
)
|
|
1
|
|
|
||||
Balance in AOCI at end of year
|
$
|
(2,493
|
)
|
|
$
|
(2,932
|
)
|
|
$
|
(26
|
)
|
|
$
|
(48
|
)
|
|
1
|
Related to the deconsolidation of our German bottling operations. Refer to
Note 2
.
|
2
|
Includes
$228 million
of recognized net actuarial losses due to the impact of settlements.
|
3
|
Includes
$118 million
of recognized net actuarial losses due to the impact of settlements.
|
4
|
Includes
$36 million
of recognized prior service credit,
$43 million
of recognized net actuarial gains and
$45 million
of actuarial gains arising in the current year due to the impact of curtailments.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Prior service credit (cost)
|
$
|
(10
|
)
|
|
$
|
(14
|
)
|
|
$
|
36
|
|
|
$
|
69
|
|
Net actuarial loss
|
(2,483
|
)
|
|
(2,918
|
)
|
|
(62
|
)
|
|
(117
|
)
|
||||
Balance in AOCI at end of year
|
$
|
(2,493
|
)
|
|
$
|
(2,932
|
)
|
|
$
|
(26
|
)
|
|
$
|
(48
|
)
|
|
Pension Benefits
|
|
Other Benefits
|
||||
Amortization of prior service cost (credit)
|
$
|
(3
|
)
|
|
$
|
(14
|
)
|
Amortization of actuarial loss
|
147
|
|
|
4
|
|
||
Total
|
$
|
144
|
|
|
$
|
(10
|
)
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
December 31,
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Discount rate
|
3.50
|
%
|
|
4.00
|
%
|
|
3.50
|
%
|
|
4.00
|
%
|
Rate of increase in compensation levels
|
3.50
|
%
|
|
3.75
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Discount rate
|
4.00
|
%
|
|
4.25
|
%
|
|
3.75
|
%
|
|
4.00
|
%
|
|
4.25
|
%
|
|
3.75
|
%
|
Rate of increase in compensation levels
|
3.75
|
%
|
|
3.50
|
%
|
|
3.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
8.00
|
%
|
|
8.25
|
%
|
|
8.25
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
December 31,
|
2017
|
|
|
2016
|
|
Health care cost trend rate assumed for next year
|
7.00
|
%
|
|
7.00
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
5.00
|
%
|
|
5.00
|
%
|
Year that the rate reaches the ultimate trend rate
|
2022
|
|
|
2021
|
|
Year Ended December 31,
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023–2027
|
|
||||||
Pension benefit payments
|
$
|
713
|
|
|
$
|
461
|
|
|
$
|
482
|
|
|
$
|
489
|
|
|
$
|
500
|
|
|
$
|
2,642
|
|
Other benefit payments
1
|
64
|
|
|
62
|
|
|
61
|
|
|
59
|
|
|
57
|
|
|
258
|
|
||||||
Total estimated benefit payments
|
$
|
777
|
|
|
$
|
523
|
|
|
$
|
543
|
|
|
$
|
548
|
|
|
$
|
557
|
|
|
$
|
2,900
|
|
1
|
The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be
$4 million
for the period 2018–2022, and
$3 million
for the period 2023–2027.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|||
United States
|
$
|
(690
|
)
|
1
|
$
|
113
|
|
1
|
$
|
1,801
|
|
1
|
International
|
7,432
|
|
|
8,023
|
|
|
7,804
|
|
|
|||
Total
|
$
|
6,742
|
|
|
$
|
8,136
|
|
|
$
|
9,605
|
|
|
|
United States
|
|
|
State and Local
|
|
|
International
|
|
|
Total
|
|
||||
2017
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
5,438
|
|
1
|
$
|
121
|
|
|
$
|
1,257
|
|
|
$
|
6,816
|
|
Deferred
|
(1,783
|
)
|
1,2
|
14
|
|
|
513
|
|
1
|
(1,256
|
)
|
||||
2016
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
1,147
|
|
|
$
|
113
|
|
|
$
|
1,182
|
|
|
$
|
2,442
|
|
Deferred
|
(838
|
)
|
2
|
(91
|
)
|
|
73
|
|
|
(856
|
)
|
||||
2015
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
711
|
|
|
$
|
69
|
|
|
$
|
1,386
|
|
|
$
|
2,166
|
|
Deferred
|
120
|
|
|
45
|
|
|
(92
|
)
|
|
73
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Statutory U.S. federal tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State and local income taxes — net of federal benefit
|
1.2
|
|
|
1.2
|
|
|
1.2
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate
|
(9.7
|
)
|
|
(17.5
|
)
|
5
|
(12.7
|
)
|
Equity income or loss
|
(3.4
|
)
|
|
(3.0
|
)
|
|
(1.7
|
)
|
Tax Reform Act
|
53.5
|
|
1
|
—
|
|
|
—
|
|
Other — net
|
5.9
|
|
2,3,4
|
3.8
|
|
6
|
1.5
|
|
Effective tax rate
|
82.5
|
%
|
|
19.5
|
%
|
|
23.3
|
%
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
302
|
|
|
$
|
168
|
|
|
$
|
211
|
|
Increase related to prior period tax positions
|
18
|
|
|
163
|
|
1
|
4
|
|
|||
Decrease related to prior period tax positions
|
(13
|
)
|
|
—
|
|
|
(9
|
)
|
|||
Increase related to current period tax positions
|
13
|
|
|
17
|
|
|
5
|
|
|||
Decrease related to settlements with taxing authorities
|
—
|
|
|
(40
|
)
|
1
|
(5
|
)
|
|||
Decrease due to lapse of the applicable statute of limitations
|
—
|
|
|
—
|
|
|
(23
|
)
|
|||
Increase (decrease) due to effect of foreign currency exchange rate changes
|
11
|
|
|
(6
|
)
|
|
(15
|
)
|
|||
Ending balance of unrecognized tax benefits
|
$
|
331
|
|
|
$
|
302
|
|
|
$
|
168
|
|
1
|
The increase is primarily related to a change in judgment about one of the Company's tax positions as a result of receiving notification of a preliminary settlement of a Competent Authority matter with a foreign jurisdiction, a portion of which became certain later in the year. This change in position did not have a material impact on the Company's consolidated statement of income during the year ended December 31, 2016, as it was partially offset by refunds to be received from the foreign jurisdiction.
|
December 31,
|
2017
|
|
|
2016
|
|
||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
99
|
|
|
$
|
144
|
|
Trademarks and other intangible assets
|
98
|
|
|
114
|
|
||
Equity method investments (including foreign currency translation adjustment)
|
300
|
|
|
684
|
|
||
Derivative financial instruments
|
387
|
|
|
193
|
|
||
Other liabilities
|
861
|
|
|
1,141
|
|
||
Benefit plans
|
977
|
|
|
1,599
|
|
||
Net operating/capital loss carryforwards
|
520
|
|
|
461
|
|
||
Other
|
163
|
|
|
135
|
|
||
Gross deferred tax assets
|
3,405
|
|
|
4,471
|
|
||
Valuation allowances
|
(501
|
)
|
|
(530
|
)
|
||
Total deferred tax assets
1,2
|
$
|
2,904
|
|
|
$
|
3,941
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
$
|
(819
|
)
|
|
$
|
(1,176
|
)
|
Trademarks and other intangible assets
|
(978
|
)
|
|
(2,694
|
)
|
||
Equity method investments (including foreign currency translation adjustment)
|
(1,835
|
)
|
|
(1,718
|
)
|
||
Derivative financial instruments
|
(436
|
)
|
|
(1,121
|
)
|
||
Other liabilities
|
(50
|
)
|
|
(149
|
)
|
||
Benefit plans
|
(289
|
)
|
|
(487
|
)
|
||
Other
|
(688
|
)
|
|
(635
|
)
|
||
Total deferred tax liabilities
3
|
(5,095
|
)
|
|
(7,980
|
)
|
||
Net deferred tax liabilities
4
|
$
|
(2,191
|
)
|
|
$
|
(4,039
|
)
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
Balance at beginning of year
|
$
|
530
|
|
|
$
|
477
|
|
|
$
|
649
|
|
Additions
|
184
|
|
|
68
|
|
|
42
|
|
|||
Decrease due to reclassification to assets held for sale
|
—
|
|
|
(9
|
)
|
|
(163
|
)
|
|||
Deductions
|
(213
|
)
|
|
(6
|
)
|
|
(51
|
)
|
|||
Balance at end of year
|
$
|
501
|
|
|
$
|
530
|
|
|
$
|
477
|
|
December 31,
|
2017
|
|
|
2016
|
|
||
Foreign currency translation adjustments
|
$
|
(8,957
|
)
|
|
$
|
(9,780
|
)
|
Accumulated derivative net gain (loss)
|
(119
|
)
|
|
314
|
|
||
Unrealized net gain (loss) on available-for-sale securities
|
493
|
|
|
305
|
|
||
Adjustments to pension and other benefit liabilities
|
(1,722
|
)
|
|
(2,044
|
)
|
||
Accumulated other comprehensive income (loss)
|
$
|
(10,305
|
)
|
|
$
|
(11,205
|
)
|
|
Year Ended December 31, 2017
|
||||||||
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||
Consolidated net income
|
$
|
1,248
|
|
$
|
35
|
|
$
|
1,283
|
|
Other comprehensive income:
|
|
|
|
||||||
Net foreign currency translation adjustment
|
823
|
|
38
|
|
861
|
|
|||
Net gain (loss) on derivatives
1
|
(433
|
)
|
—
|
|
(433
|
)
|
|||
Net change in unrealized gain (loss) on available-for-sale securities
2
|
188
|
|
—
|
|
188
|
|
|||
Net change in pension and other benefit liabilities
3
|
322
|
|
—
|
|
322
|
|
|||
Total comprehensive income
|
$
|
2,148
|
|
$
|
73
|
|
$
|
2,221
|
|
1
|
Refer to
Note 5
for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 3
for additional information related to the net unrealized gain or loss on available-for-sale securities.
|
3
|
Refer to
Note 13
for additional information related to the Company's pension and other postretirement benefit liabilities.
|
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
2017
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the year
|
$
|
(1,350
|
)
|
|
$
|
(242
|
)
|
|
$
|
(1,592
|
)
|
Reclassification adjustments recognized in net income
|
23
|
|
|
(6
|
)
|
|
17
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
3,332
|
|
|
—
|
|
|
3,332
|
|
|||
Gains (losses) on net investment hedges arising during the year
|
(1,512
|
)
|
|
578
|
|
|
(934
|
)
|
|||
Net foreign currency translation adjustments
|
493
|
|
|
330
|
|
|
823
|
|
|||
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the year
|
(184
|
)
|
|
65
|
|
|
(119
|
)
|
|||
Reclassification adjustments recognized in net income
|
(506
|
)
|
|
192
|
|
|
(314
|
)
|
|||
Net gain (loss) on derivatives
1
|
(690
|
)
|
|
257
|
|
|
(433
|
)
|
|||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the year
|
405
|
|
|
(136
|
)
|
|
269
|
|
|||
Reclassification adjustments recognized in net income
|
(123
|
)
|
|
42
|
|
|
(81
|
)
|
|||
Net change in unrealized gain (loss) on available-for-sale securities
2
|
282
|
|
|
(94
|
)
|
|
188
|
|
|||
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefits arising during the year
|
120
|
|
|
(7
|
)
|
|
113
|
|
|||
Reclassification adjustments recognized in net income
|
325
|
|
|
(116
|
)
|
|
209
|
|
|||
Net change in pension and other benefit liabilities
3
|
445
|
|
|
(123
|
)
|
|
322
|
|
|||
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
|
$
|
530
|
|
|
$
|
370
|
|
|
$
|
900
|
|
1
|
Refer to
Note 5
for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 3
for additional information related to the net unrealized gain or loss on available for sale securities.
|
3
|
Refer to
Note 13
for additional information related to the Company's pension and other postretirement benefit liabilities.
|
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
2016
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the year
|
$
|
(1,103
|
)
|
|
$
|
51
|
|
|
$
|
(1,052
|
)
|
Reclassification adjustments recognized in net income
|
368
|
|
|
(18
|
)
|
|
350
|
|
|||
Gains (losses) on net investment hedges arising during the year
|
67
|
|
|
(25
|
)
|
|
42
|
|
|||
Reclassification adjustments for net investment hedges recognized in net income
|
77
|
|
|
(30
|
)
|
|
47
|
|
|||
Net foreign currency translation adjustments
|
(591
|
)
|
|
(22
|
)
|
|
(613
|
)
|
|||
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the year
|
(43
|
)
|
|
11
|
|
|
(32
|
)
|
|||
Reclassification adjustments recognized in net income
|
(563
|
)
|
|
213
|
|
|
(350
|
)
|
|||
Net gain (loss) on derivatives
1
|
(606
|
)
|
|
224
|
|
|
(382
|
)
|
|||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the year
|
124
|
|
|
(28
|
)
|
|
96
|
|
|||
Reclassification adjustments recognized in net income
|
(105
|
)
|
|
26
|
|
|
(79
|
)
|
|||
Net change in unrealized gain (loss) on available-for-sale securities
2
|
19
|
|
|
(2
|
)
|
|
17
|
|
|||
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefits arising during the year
|
(374
|
)
|
|
99
|
|
|
(275
|
)
|
|||
Reclassification adjustments recognized in net income
|
342
|
|
|
(120
|
)
|
|
222
|
|
|||
Net change in pension and other benefit liabilities
3
|
(32
|
)
|
|
(21
|
)
|
|
(53
|
)
|
|||
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
|
$
|
(1,210
|
)
|
|
$
|
179
|
|
|
$
|
(1,031
|
)
|
1
|
Refer to
Note 5
for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 3
for additional information related to the net unrealized gain or loss on available for sale securities.
|
3
|
Refer to
Note 13
for additional information related to the Company's pension and other postretirement benefit liabilities.
|
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
2015
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the year
|
$
|
(4,626
|
)
|
|
$
|
243
|
|
|
$
|
(4,383
|
)
|
Reclassification adjustments recognized in net income
|
63
|
|
|
(14
|
)
|
|
49
|
|
|||
Unrealized gains (losses) on net investment hedges arising during the year
|
637
|
|
|
(244
|
)
|
|
393
|
|
|||
Net foreign currency translation adjustments
|
(3,926
|
)
|
|
(15
|
)
|
|
(3,941
|
)
|
|||
Derivatives:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the year
|
853
|
|
|
(314
|
)
|
|
539
|
|
|||
Reclassification adjustments recognized in net income
|
(638
|
)
|
|
241
|
|
|
(397
|
)
|
|||
Net gain (loss) on derivatives
1
|
215
|
|
|
(73
|
)
|
|
142
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the year
|
(973
|
)
|
|
328
|
|
|
(645
|
)
|
|||
Reclassification adjustments recognized in net income
|
(61
|
)
|
|
22
|
|
|
(39
|
)
|
|||
Net change in unrealized gain (loss) on available-for-sale securities
2
|
(1,034
|
)
|
|
350
|
|
|
(684
|
)
|
|||
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefits arising during the year
|
(169
|
)
|
|
43
|
|
|
(126
|
)
|
|||
Reclassification adjustments recognized in net income
|
337
|
|
|
(125
|
)
|
|
212
|
|
|||
Net change in pension and other benefit liabilities
3
|
168
|
|
|
(82
|
)
|
|
86
|
|
|||
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
|
$
|
(4,577
|
)
|
|
$
|
180
|
|
|
$
|
(4,397
|
)
|
1
|
Refer to
Note 5
for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 3
for additional information related to the net unrealized gain or loss on available for sale securities.
|
3
|
Refer to
Note 13
for additional information related to the Company's pension and other postretirement benefit liabilities.
|
Description of AOCI Component
|
Financial Statement Line Item
|
Amount Reclassified from AOCI into Income
|
|
|
Foreign currency translation adjustments:
|
|
|
||
Divestitures, deconsolidations and other
1
|
Other income (loss) — net
|
$
|
23
|
|
|
Income from continuing operations before income taxes
|
$
|
23
|
|
|
Income taxes from continuing operations
|
(6
|
)
|
|
|
Consolidated net income
|
$
|
17
|
|
Derivatives:
|
|
|
||
Foreign currency contracts
|
Net operating revenues
|
$
|
(444
|
)
|
Foreign currency and commodity contracts
|
Cost of goods sold
|
3
|
|
|
Foreign currency and interest rate contracts
|
Interest expense
|
44
|
|
|
Foreign currency contracts
|
Other income (loss) — net
|
(110
|
)
|
|
Divestitures, deconsolidations and other
2
|
Other income (loss) — net
|
1
|
|
|
|
Income from continuing operations before income taxes
|
$
|
(506
|
)
|
|
Income taxes from continuing operations
|
192
|
|
|
|
Consolidated net income
|
$
|
(314
|
)
|
Available-for-sale securities:
|
|
|
||
Divestitures, deconsolidations and other
2
|
Other income (loss) — net
|
$
|
(87
|
)
|
Sale of securities
|
Other income (loss) — net
|
(36
|
)
|
|
|
Income from continuing operations before income taxes
|
$
|
(123
|
)
|
|
Income taxes from continuing operations
|
42
|
|
|
|
Consolidated net income
|
$
|
(81
|
)
|
Pension and other benefit liabilities:
|
|
|
||
Curtailment charges (credits)
3
|
Other operating charges
|
$
|
(75
|
)
|
Settlement charges (credits)
3
|
Other operating charges
|
228
|
|
|
Divestitures, deconsolidations and other
2
|
Other income (loss) — net
|
7
|
|
|
Recognized net actuarial loss (gain)
|
*
|
183
|
|
|
Recognized prior service cost (credit)
|
*
|
(18
|
)
|
|
|
Income from continuing operations before income taxes
|
$
|
325
|
|
|
Income taxes from continuing operations
|
(116
|
)
|
|
|
Consolidated net income
|
$
|
209
|
|
•
|
Level 1 — Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
|
December 31, 2017
|
|
||||||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Other
|
|
4
|
Netting
Adjustment
|
|
5
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading securities
1
|
$
|
212
|
|
|
$
|
127
|
|
|
$
|
3
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
407
|
|
|
Available-for-sale securities
1
|
1,899
|
|
|
5,739
|
|
|
169
|
|
3
|
—
|
|
|
—
|
|
|
7,807
|
|
|
||||||
Derivatives
2
|
7
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
6
|
59
|
|
8
|
||||||
Total assets
|
$
|
2,118
|
|
|
$
|
6,116
|
|
|
$
|
172
|
|
|
$
|
65
|
|
|
$
|
(198
|
)
|
|
$
|
8,273
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives
2
|
$
|
(3
|
)
|
|
$
|
(262
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
147
|
|
7
|
$
|
(118
|
)
|
8
|
Total liabilities
|
$
|
(3
|
)
|
|
$
|
(262
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
$
|
(118
|
)
|
|
1
|
Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities.
|
2
|
Refer to
Note 5
for additional information related to the composition of our derivative portfolio.
|
3
|
Primarily related to debt securities that mature in 2018.
|
4
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3.
|
5
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to
Note 5
.
|
6
|
The Company is obligated to return
$55 million
in cash collateral it has netted against its derivative position.
|
7
|
The Company has the right to reclaim
$2 million
in cash collateral it has netted against its derivative position.
|
8
|
The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $
59 million
in the line item other assets;
$28 million
in the line item accounts payable and accrued expenses;
$12 million
in the line item liabilities held for sale — discontinued operations and $
78 million
in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio.
|
|
December 31, 2016
|
|
||||||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Other
|
|
4
|
Netting
Adjustment
|
|
5
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading securities
1
|
$
|
202
|
|
|
$
|
115
|
|
|
$
|
4
|
|
|
$
|
63
|
|
|
$
|
—
|
|
|
$
|
384
|
|
|
Available-for-sale securities
1
|
1,655
|
|
|
4,619
|
|
|
139
|
|
3
|
—
|
|
|
—
|
|
|
6,413
|
|
|
||||||
Derivatives
2
|
4
|
|
|
878
|
|
|
—
|
|
|
—
|
|
|
(369
|
)
|
6
|
513
|
|
8
|
||||||
Total assets
|
$
|
1,861
|
|
|
$
|
5,612
|
|
|
$
|
143
|
|
|
$
|
63
|
|
|
$
|
(369
|
)
|
|
$
|
7,310
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives
2
|
$
|
11
|
|
|
$
|
276
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(192
|
)
|
7
|
$
|
95
|
|
8
|
Total liabilities
|
$
|
11
|
|
|
$
|
276
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(192
|
)
|
|
$
|
95
|
|
|
1
|
Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities.
|
2
|
Refer to
Note 5
for additional information related to the composition of our derivative portfolio.
|
3
|
Primarily related to long-term debt securities that mature in 2018.
|
4
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3.
|
5
|
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to
Note 5
.
|
6
|
The Company is obligated to return $
201 million
in cash collateral it has netted against its derivative position.
|
7
|
The Company has the right to reclaim $
17 million
in cash collateral it has netted against its derivative position.
|
8
|
The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $
347 million
in the line item prepaid expenses and other assets; $
166 million
in the line item other assets;
$42 million
in the line item accounts payable and accrued expenses; and $
53 million
in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio.
|
|
Gains (Losses)
|
|
||||||
December 31,
|
2017
|
|
|
2016
|
|
|
||
Assets held for sale
1
|
$
|
(1,819
|
)
|
|
$
|
(2,264
|
)
|
|
Intangible assets
|
(442
|
)
|
2
|
(153
|
)
|
7
|
||
Other long-lived assets
|
(329
|
)
|
3
|
—
|
|
|
||
Other-than-temporary impairment charge
|
(50
|
)
|
4
|
—
|
|
|
||
Investment in formerly unconsolidated subsidiary
|
150
|
|
5
|
—
|
|
|
||
Valuation of shares in equity method investee
|
25
|
|
6
|
—
|
|
|
||
Total
|
$
|
(2,465
|
)
|
|
$
|
(2,417
|
)
|
|
1
|
The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. These losses related to refranchising activities in North America. The charges were calculated based on Level 3 inputs. Refer to Note 2.
|
2
|
The Company recognized an impairment charge of
$375 million
related to CCR's goodwill. This impairment charge was determined by comparing the fair value of the reporting unit, based on Level 3 inputs, to its carrying value. The Company also recognized an impairment charge of
$33 million
related to certain U.S. bottlers' franchise rights. This charge was determined by comparing the fair value of the asset to its current carrying value. Each of these impairment charges was primarily a result of refranchising activities in North America and management's estimates of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. Additionally, the Company recorded impairment charges of
$34 million
related to Venezuelan intangible assets due to weaker sales and the volatility of foreign currency exchange rates resulting from continued political instability. The fair value of these assets was derived using discounted cash flow analyses based on Level 3 inputs.
|
3
|
The Company recognized impairment charges of
$310 million
related to CCR's property, plant and equipment and
$19 million
related to CCR's other assets primarily as a result of refranchising activities in North America. The fair value of these assets was derived using management's estimate of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising.
|
4
|
The Company recognized an other-than-temporary impairment charge of
$50 million
related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. The fair value of this investment was derived using discounted cash flow analyses based on Level 3 inputs.
|
5
|
The Company recognized a gain of
$150 million
on our previously held equity interests in CCBA and its South African subsidiary, which were accounted for under the equity method of accounting prior to our consolidation of the bottler in October 2017. U.S. GAAP requires the acquirer to remeasure its previously held noncontrolling equity interest in the acquired entity to fair value as of the acquisition date and recognize any gains or losses in earnings. The Company remeasured our equity interests in CCBA and its South African subsidiary based on Level 3 inputs. Refer to Note 2.
|
6
|
The Company recognized a gain of
$25 million
as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. This gain was determined using Level 1 inputs.
|
7
|
The Company recognized losses of
$153 million
during the year ended
December 31, 2016
due to impairment charges related to certain intangible assets. The charges included
$143 million
related to the impairment of certain U.S. bottlers' franchise rights. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's estimates of the proceeds that were expected to be received upon refranchising the territories. The losses also included a
$10 million
goodwill impairment charge, primarily the result of management's revised outlook on market conditions. The charges were determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 17.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other
1
|
|
|
Total
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other
1
|
|
|
Total
|
|
||||||||||
Cash and cash equivalents
|
$
|
626
|
|
$
|
65
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
691
|
|
|
$
|
373
|
|
$
|
29
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
402
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S.-based companies
|
2,080
|
|
3
|
|
14
|
|
|
—
|
|
|
2,097
|
|
|
1,812
|
|
1
|
|
14
|
|
|
—
|
|
|
1,827
|
|
||||||||||
International-based companies
|
1,465
|
|
—
|
|
—
|
|
|
—
|
|
|
1,465
|
|
|
935
|
|
4
|
|
—
|
|
|
—
|
|
|
939
|
|
||||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Government bonds
|
—
|
|
374
|
|
—
|
|
|
—
|
|
|
374
|
|
|
—
|
|
525
|
|
1
|
|
|
—
|
|
|
526
|
|
||||||||||
Corporate bonds and debt securities
|
—
|
|
803
|
|
24
|
|
|
—
|
|
|
827
|
|
|
—
|
|
978
|
|
18
|
|
|
—
|
|
|
996
|
|
||||||||||
Mutual, pooled and commingled funds
|
239
|
|
42
|
|
—
|
|
|
700
|
|
3
|
981
|
|
|
91
|
|
20
|
|
—
|
|
|
1,022
|
|
3
|
1,133
|
|
||||||||||
Hedge funds/limited partnerships
|
—
|
|
—
|
|
—
|
|
|
983
|
|
4
|
983
|
|
|
—
|
|
—
|
|
—
|
|
|
1,213
|
|
4
|
1,213
|
|
||||||||||
Real estate
|
—
|
|
—
|
|
2
|
|
|
596
|
|
5
|
598
|
|
|
—
|
|
—
|
|
2
|
|
|
521
|
|
5
|
523
|
|
||||||||||
Other
|
—
|
|
—
|
|
263
|
|
2
|
564
|
|
6
|
827
|
|
|
—
|
|
3
|
|
211
|
|
2
|
598
|
|
6
|
812
|
|
||||||||||
Total
|
$
|
4,410
|
|
$
|
1,287
|
|
$
|
303
|
|
|
$
|
2,843
|
|
|
$
|
8,843
|
|
|
$
|
3,211
|
|
$
|
1,560
|
|
$
|
246
|
|
|
$
|
3,354
|
|
|
$
|
8,371
|
|
1
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13.
|
2
|
Includes purchased annuity insurance contracts.
|
3
|
This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developed and emerging markets. There are no liquidity restrictions on these investments.
|
4
|
This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to tri-annually with a redemption notice period of up to 120 days and/or initial lock-up periods of up to one year, and private equity funds that are primarily closed-end funds in which the Company's investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed.
|
5
|
This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation through the investments and can be subject to redemption restrictions, ranging from quarterly to semi-annually with a redemption notice period of up to 90 days.
|
6
|
This class of assets includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semi-annual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions.
|
|
Equity
Securities
|
|
|
Fixed-Income Securities
|
|
|
Real Estate
|
|
|
Other
|
|
|
Total
|
|
|||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
219
|
|
|
$
|
235
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Related to assets held at the reporting date
|
4
|
|
|
2
|
|
|
—
|
|
|
7
|
|
|
13
|
|
|||||
Related to assets sold during the year
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|
1
|
|
|||||
Purchases, sales and settlements — net
|
—
|
|
|
12
|
|
|
—
|
|
|
(23
|
)
|
|
(11
|
)
|
|||||
Transfers into/(out of) Level 3 — net
|
(1
|
)
|
|
4
|
|
|
—
|
|
|
7
|
|
|
10
|
|
|||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||
Balance at end of year
|
$
|
14
|
|
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
211
|
|
1
|
$
|
246
|
|
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
$
|
14
|
|
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
211
|
|
|
$
|
246
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Related to assets held at the reporting date
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|||||
Purchases, sales and settlements — net
|
3
|
|
|
1
|
|
|
—
|
|
|
(9
|
)
|
|
(5
|
)
|
|||||
Transfers into/(out of) Level 3 — net
|
—
|
|
|
3
|
|
|
—
|
|
|
31
|
|
|
34
|
|
|||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|||||
Balance at end of year
|
$
|
14
|
|
|
$
|
24
|
|
|
$
|
2
|
|
|
$
|
263
|
|
1
|
$
|
303
|
|
1
|
Includes purchased annuity insurance contracts.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Other
1
|
|
Total
|
|
|
Level 1
|
|
Level 2
|
|
Other
1
|
|
Total
|
|
||||||||
Cash and cash equivalents
|
$
|
78
|
|
$
|
—
|
|
$
|
—
|
|
$
|
78
|
|
|
$
|
2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S.-based companies
|
96
|
|
—
|
|
—
|
|
96
|
|
|
116
|
|
—
|
|
—
|
|
116
|
|
||||||||
International-based companies
|
8
|
|
—
|
|
—
|
|
8
|
|
|
8
|
|
—
|
|
—
|
|
8
|
|
||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government bonds
|
—
|
|
2
|
|
—
|
|
2
|
|
|
—
|
|
3
|
|
—
|
|
3
|
|
||||||||
Corporate bonds and debt securities
|
—
|
|
7
|
|
—
|
|
7
|
|
|
—
|
|
6
|
|
—
|
|
6
|
|
||||||||
Mutual, pooled and commingled funds
|
—
|
|
—
|
|
80
|
|
80
|
|
|
98
|
|
—
|
|
5
|
|
103
|
|
||||||||
Hedge funds/limited partnerships
|
—
|
|
—
|
|
8
|
|
8
|
|
|
—
|
|
—
|
|
9
|
|
9
|
|
||||||||
Real estate
|
—
|
|
—
|
|
5
|
|
5
|
|
|
—
|
|
—
|
|
4
|
|
4
|
|
||||||||
Other
|
—
|
|
—
|
|
4
|
|
4
|
|
|
—
|
|
—
|
|
4
|
|
4
|
|
||||||||
Total
|
$
|
182
|
|
$
|
9
|
|
$
|
97
|
|
$
|
288
|
|
|
$
|
224
|
|
$
|
9
|
|
$
|
22
|
|
$
|
255
|
|
1
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13.
|
|
Severance Pay
and Benefits
|
|
|
Outside Services
|
|
|
Other
Direct Costs
|
|
|
Total
|
|
||||
2015
|
|
|
|
|
|
|
|
||||||||
Accrued balance at beginning of year
|
$
|
260
|
|
|
$
|
4
|
|
|
$
|
21
|
|
|
$
|
285
|
|
Costs incurred
|
269
|
|
|
56
|
|
|
366
|
|
|
691
|
|
||||
Payments
|
(200
|
)
|
|
(47
|
)
|
|
(265
|
)
|
|
(512
|
)
|
||||
Noncash and exchange
|
(185
|
)
|
1
|
(5
|
)
|
|
(70
|
)
|
|
(260
|
)
|
||||
Accrued balance at end of year
|
$
|
144
|
|
|
$
|
8
|
|
|
$
|
52
|
|
|
$
|
204
|
|
2016
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
95
|
|
|
$
|
27
|
|
|
$
|
230
|
|
|
$
|
352
|
|
Payments
|
(114
|
)
|
|
(30
|
)
|
|
(205
|
)
|
|
(349
|
)
|
||||
Noncash and exchange
|
(2
|
)
|
|
1
|
|
|
(55
|
)
|
|
(56
|
)
|
||||
Accrued balance at end of year
|
$
|
123
|
|
|
$
|
6
|
|
|
$
|
22
|
|
|
$
|
151
|
|
2017
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
310
|
|
|
$
|
79
|
|
|
$
|
261
|
|
|
$
|
650
|
|
Payments
|
(181
|
)
|
|
(83
|
)
|
|
(267
|
)
|
|
(531
|
)
|
||||
Noncash and exchange
|
(62
|
)
|
1
|
(1
|
)
|
|
(1
|
)
|
|
(64
|
)
|
||||
Accrued balance at end of year
|
$
|
190
|
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
206
|
|
1
|
Includes pension settlement charges. Refer to Note 13.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
Concentrate operations
1
|
51
|
%
|
|
40
|
%
|
|
37
|
%
|
Finished product operations
2
|
49
|
|
|
60
|
|
|
63
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
1
|
Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers.
|
2
|
Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
United States
|
$
|
14,727
|
|
|
$
|
19,899
|
|
|
$
|
20,360
|
|
International
|
20,683
|
|
|
21,964
|
|
|
23,934
|
|
|||
Net operating revenues
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
$
|
44,294
|
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
United States
|
$
|
4,163
|
|
|
$
|
6,784
|
|
|
$
|
8,266
|
|
International
|
4,040
|
|
|
3,851
|
|
|
4,305
|
|
|||
Property, plant and equipment — net
|
$
|
8,203
|
|
|
$
|
10,635
|
|
|
$
|
12,571
|
|
|
Europe, Middle East & Africa
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Asia Pacific
|
|
|
Bottling
Investments
|
|
|
Corporate
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
$
|
7,332
|
|
|
$
|
3,956
|
|
|
$
|
8,651
|
|
|
$
|
4,767
|
|
|
$
|
10,524
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
35,368
|
|
|
Intersegment
|
42
|
|
|
73
|
|
|
1,986
|
|
|
409
|
|
|
81
|
|
|
—
|
|
|
(2,549
|
)
|
|
42
|
|
4
|
||||||||
Total net operating revenues
|
7,374
|
|
|
4,029
|
|
|
10,637
|
|
|
5,176
|
|
|
10,605
|
|
|
138
|
|
|
(2,549
|
)
|
|
35,410
|
|
|
||||||||
Operating income (loss)
|
3,646
|
|
|
2,214
|
|
|
2,578
|
|
|
2,163
|
|
|
(1,117
|
)
|
|
(1,983
|
)
|
|
—
|
|
|
7,501
|
|
|
||||||||
Interest income
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
633
|
|
|
—
|
|
|
677
|
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
841
|
|
|
—
|
|
|
841
|
|
|
||||||||
Depreciation and amortization
|
91
|
|
|
37
|
|
|
411
|
|
|
65
|
|
|
454
|
|
|
202
|
|
|
—
|
|
|
1,260
|
|
|
||||||||
Equity income (loss) — net
|
48
|
|
|
(3
|
)
|
|
(3
|
)
|
|
11
|
|
|
878
|
|
|
140
|
|
|
—
|
|
|
1,071
|
|
|
||||||||
Income (loss) from continuing operations before income taxes
|
3,706
|
|
|
2,211
|
|
|
2,307
|
|
|
2,179
|
|
|
(2,345
|
)
|
|
(1,316
|
)
|
|
—
|
|
|
6,742
|
|
|
||||||||
Identifiable operating assets
1
|
5,475
|
|
|
1,896
|
|
|
17,619
|
|
|
2,072
|
|
2
|
4,493
|
|
2
|
27,060
|
|
|
—
|
|
|
58,615
|
|
5
|
||||||||
Investments
3
|
1,238
|
|
|
891
|
|
|
112
|
|
|
177
|
|
|
15,998
|
|
|
3,536
|
|
|
—
|
|
|
21,952
|
|
|
||||||||
Capital expenditures
|
81
|
|
|
55
|
|
|
541
|
|
|
50
|
|
|
662
|
|
|
286
|
|
|
—
|
|
|
1,675
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
$
|
7,014
|
|
|
$
|
3,746
|
|
|
$
|
6,437
|
|
|
$
|
4,788
|
|
|
$
|
19,751
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
41,863
|
|
|
Intersegment
|
264
|
|
|
73
|
|
|
3,773
|
|
|
506
|
|
|
134
|
|
|
5
|
|
|
(4,755
|
)
|
|
—
|
|
|
||||||||
Total net operating revenues
|
7,278
|
|
|
3,819
|
|
|
10,210
|
|
|
5,294
|
|
|
19,885
|
|
|
132
|
|
|
(4,755
|
)
|
|
41,863
|
|
|
||||||||
Operating income (loss)
|
3,676
|
|
|
1,951
|
|
|
2,582
|
|
|
2,224
|
|
|
(137
|
)
|
|
(1,670
|
)
|
|
—
|
|
|
8,626
|
|
|
||||||||
Interest income
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
615
|
|
|
—
|
|
|
642
|
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
733
|
|
|
—
|
|
|
733
|
|
|
||||||||
Depreciation and amortization
|
93
|
|
|
35
|
|
|
426
|
|
|
80
|
|
|
1,013
|
|
|
140
|
|
|
—
|
|
|
1,787
|
|
|
||||||||
Equity income (loss) — net
|
62
|
|
|
18
|
|
|
(17
|
)
|
|
9
|
|
|
648
|
|
|
115
|
|
|
—
|
|
|
835
|
|
|
||||||||
Income (loss) from continuing operations before income taxes
|
3,749
|
|
|
1,966
|
|
|
2,560
|
|
|
2,238
|
|
|
(1,923
|
)
|
|
(454
|
)
|
|
—
|
|
|
8,136
|
|
|
||||||||
Identifiable operating assets
1
|
4,067
|
|
|
1,785
|
|
|
16,566
|
|
|
2,024
|
|
|
15,973
|
|
|
29,606
|
|
|
—
|
|
|
70,021
|
|
|
||||||||
Investments
3
|
1,302
|
|
|
804
|
|
|
109
|
|
|
164
|
|
|
11,456
|
|
|
3,414
|
|
|
—
|
|
|
17,249
|
|
|
||||||||
Capital expenditures
|
62
|
|
|
45
|
|
|
438
|
|
|
107
|
|
|
1,329
|
|
|
281
|
|
|
—
|
|
|
2,262
|
|
|
||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
$
|
6,966
|
|
|
$
|
3,999
|
|
|
$
|
5,581
|
|
|
$
|
4,707
|
|
|
$
|
22,885
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
$
|
44,294
|
|
|
Intersegment
|
621
|
|
|
75
|
|
|
4,259
|
|
|
545
|
|
|
178
|
|
|
10
|
|
|
(5,688
|
)
|
|
—
|
|
|
||||||||
Total net operating revenues
|
7,587
|
|
|
4,074
|
|
|
9,840
|
|
|
5,252
|
|
|
23,063
|
|
|
166
|
|
|
(5,688
|
)
|
|
44,294
|
|
|
||||||||
Operating income (loss)
|
3,875
|
|
|
2,169
|
|
|
2,366
|
|
|
2,189
|
|
|
124
|
|
|
(1,995
|
)
|
|
—
|
|
|
8,728
|
|
|
||||||||
Interest income
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
604
|
|
|
—
|
|
|
613
|
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
856
|
|
|
—
|
|
|
856
|
|
|
||||||||
Depreciation and amortization
|
103
|
|
|
41
|
|
|
373
|
|
|
85
|
|
|
1,211
|
|
|
157
|
|
|
—
|
|
|
1,970
|
|
|
||||||||
Equity income (loss) — net
|
39
|
|
|
(7
|
)
|
|
(18
|
)
|
|
9
|
|
|
426
|
|
|
40
|
|
|
—
|
|
|
489
|
|
|
||||||||
Income (loss) from continuing operations before income taxes
|
3,923
|
|
|
2,164
|
|
|
2,356
|
|
|
2,207
|
|
|
(427
|
)
|
|
(618
|
)
|
|
—
|
|
|
9,605
|
|
|
||||||||
Identifiable operating assets
1
|
4,156
|
|
2
|
1,627
|
|
|
16,396
|
|
|
1,639
|
|
|
22,688
|
|
2
|
27,702
|
|
|
—
|
|
|
74,208
|
|
|
||||||||
Investments
3
|
1,138
|
|
|
657
|
|
|
107
|
|
|
158
|
|
|
8,084
|
|
|
5,644
|
|
|
—
|
|
|
15,788
|
|
|
||||||||
Capital expenditures
|
54
|
|
|
70
|
|
|
377
|
|
|
81
|
|
|
1,699
|
|
|
272
|
|
|
—
|
|
|
2,553
|
|
|
1
|
Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets, and property, plant and equipment — net.
|
2
|
Property, plant and equipment — net in India represented
11 percent
of consolidated property, plant and equipment — net in 2017. Property, plant and equipment — net in Germany represented
10 percent
of consolidated property, plant and equipment — net in 2015. The
|
3
|
Principally equity method investments and other investments in bottling companies.
|
4
|
Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations.
|
5
|
Identifiable operating assets excludes
$7,329 million
of assets held for sale
—
discontinued operations.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$26 million
for Europe, Middle East and Africa,
$7 million
for Latin America,
$241 million
for North America,
$10 million
for Asia Pacific,
$57 million
for Bottling Investments and
$309 million
for Corporate due to the Company's productivity and reinvestment program. Refer to
Note 18
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$737 million
for Bottling Investments and
$34 million
for Corporate due to asset impairment charges. Refer to
Note 1
and
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$419 million
for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to
Note 2
and
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$225 million
for Corporate as a result of cash contributions to The Coca-Cola Foundation. Refer to
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$67 million
for Corporate due to tax litigation expense. Refer to
Note 11
and
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$4 million
for Europe, Middle East and Africa,
$2 million
for North America,
$70 million
for Bottling Investments and
$16 million
for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$2,140 million
for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$445 million
for Corporate due to a gain recognized resulting from the merger of CCW and CCEJ. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$313 million
for North America primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$150 million
for Corporate related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$88 million
for Corporate due to a gain recognized upon refranchising our China bottling operations and related cost method investment. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$50 million
for Corporate due to an other-than-temporary impairment charge related to one of our international equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$38 million
for Corporate due to the early extinguishment of long-term debt. Refer to
Note 10
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$26 million
for Corporate due to a charge related to our former German bottling operations.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$25 million
for Corporate due to Coca‑Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$32 million
for Europe, Middle East and Africa,
$134 million
for North America,
$1 million
for Asia Pacific,
$322 million
for
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$297 million
for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$200 million
for Corporate as a result of cash contributions to The Coca-Cola Foundation. Refer to
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$153 million
for Bottling Investments due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 17.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$118 million
for Bottling Investments due to pension settlement charges primarily as a result of our refranchising activities. Refer to Note 17.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$76 million
for Latin America due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates. Refer to Note 1.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$9 million
for Bottling Investments and
$32 million
for Corporate related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$52 million
for Bottling Investments and
$9 million
for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$2,456 million
for Bottling Investments primarily due to the refranchising of certain bottling territories in North America. Refer to
Note 2
and
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$1,323 million
for Corporate as a result of the deconsolidation of our German bottling operations. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$72 million
for Corporate as a result of remeasuring our net monetary assets denominated in Egyptian pounds. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$31 million
for North America related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to
Note 2
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $
7 million
for Latin America, $
141 million
for North America, $
2 million
for Asia Pacific, $
596 million
for Bottling Investments and $
246 million
for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $
9 million
for Europe, Middle East and Africa due to the refinement of previously established accruals, partially offset by additional charges related to the Company's productivity and reinvestment program. Refer to
Note 18
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$418 million
for Corporate primarily due to an impairment charge primarily related to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. Refer to
Note 2
and
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$100 million
for Corporate as a result of a cash contribution to The Coca-Cola Foundation. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$4 million
for Europe, Middle East and Africa and
$83 million
for Bottling Investments due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$1,403 million
for Corporate as a result of the Monster Transaction. Refer to
Note 2
and
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$1,006 million
for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to
Note 2
and
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$320 million
for Corporate due to charges the Company recognized on the early extinguishment of certain long-term debt. Refer to
Note 10
and
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$33 million
for Latin America and
$105 million
for Corporate due to the remeasurement of the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SIMADI exchange rate, an impairment of a Venezuelan trademark, and a write-down the Company recorded on receivables from our bottling partner in Venezuela. Refer to
Note 1
and
Note 17
.
|
Year Ended December 31,
|
2017
|
|
|
2016
|
|
|
2015
|
|
|||
(Increase) decrease in trade accounts receivable
|
$
|
(141
|
)
|
|
$
|
(28
|
)
|
|
$
|
(212
|
)
|
(Increase) decrease in inventories
|
(355
|
)
|
|
(142
|
)
|
|
(250
|
)
|
|||
(Increase) decrease in prepaid expenses and other assets
|
571
|
|
|
283
|
|
|
123
|
|
|||
Increase (decrease) in accounts payable and accrued expenses
|
(445
|
)
|
|
(540
|
)
|
|
1,004
|
|
|||
Increase (decrease) in accrued income taxes
|
(153
|
)
|
|
750
|
|
|
(306
|
)
|
|||
Increase (decrease) in other liabilities
1
|
4,052
|
|
|
(544
|
)
|
|
(516
|
)
|
|||
Net change in operating assets and liabilities
|
$
|
3,529
|
|
|
$
|
(221
|
)
|
|
$
|
(157
|
)
|
|
|
|
James R. Quincey
|
|
Larry M. Mark
|
President and Chief Executive Officer
February 23, 2018 |
|
Vice President and Controller
February 23, 2018 |
|
|
|
|
|
|
Kathy N. Waller
|
|
Mark Randazza
|
Executive Vice President, Chief Financial Officer
and President, Enabling Services February 23, 2018 |
|
Vice President, Assistant Controller and Chief Accounting Officer
February 23, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
Full Year
|
|
|
|||||
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
9,118
|
|
|
$
|
9,702
|
|
|
$
|
9,078
|
|
|
$
|
7,512
|
|
|
$
|
35,410
|
|
|
Gross profit
|
5,605
|
|
|
6,043
|
|
|
5,683
|
|
|
4,823
|
|
|
22,154
|
|
|
|||||
Net income (loss) attributable to shareowners of
The Coca-Cola Company
|
1,182
|
|
|
1,371
|
|
|
1,447
|
|
|
(2,752
|
)
|
|
1,248
|
|
|
|||||
Basic net income (loss) per share
|
$
|
0.28
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.29
|
|
|
Diluted net income (loss) per share
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.33
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.29
|
|
1
|
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
10,282
|
|
|
$
|
11,539
|
|
|
$
|
10,633
|
|
|
$
|
9,409
|
|
|
$
|
41,863
|
|
|
Gross profit
|
6,213
|
|
|
7,068
|
|
|
6,502
|
|
|
5,615
|
|
|
25,398
|
|
|
|||||
Net income attributable to shareowners of
The Coca-Cola Company
|
1,483
|
|
|
3,448
|
|
|
1,046
|
|
|
550
|
|
|
6,527
|
|
|
|||||
Basic net income per share
|
$
|
0.34
|
|
|
$
|
0.80
|
|
|
$
|
0.24
|
|
|
$
|
0.13
|
|
|
$
|
1.51
|
|
|
Diluted net income per share
|
$
|
0.34
|
|
|
$
|
0.79
|
|
|
$
|
0.24
|
|
|
$
|
0.13
|
|
|
$
|
1.49
|
|
1
|
1
|
The sum of the quarterly net income per share amounts does not agree to the full year net income per share amounts. We calculate net income per share based on the weighted-average number of outstanding shares during the reporting period. The average number of shares fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
|
•
|
Charges of $497 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $139 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
Charges of $106 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 and Note 17.
|
•
|
Charges of $104 million related to the impairment of certain intangible assets. Refer to Note 17.
|
•
|
A net charge of $58 million related to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17.
|
•
|
Charges of $60 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $667 million related to the impairment of certain intangible assets. Refer to Note 17.
|
•
|
A gain of $445 million related to the integration of CCW and CCEJ to establish CCBJI. Refer to Note 17.
|
•
|
Charges of $214 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $109 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 and Note 17.
|
•
|
Charges of $87 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
Charges of $44 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
A net charge of $38 million related to the early extinguishment of long-term debt. Refer to
Note 10
.
|
•
|
A net gain of $37 million related to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17.
|
•
|
A gain of $9 million related to refranchising a substantial portion of our China bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $762 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $213 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $129 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
A gain of $79 million related to the refranchising of our remaining China bottling operations and related cost method investment. Refer to Note 2 and Note 17.
|
•
|
Charges of $72 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 and Note 17.
|
•
|
A
n other-than-temporary impairment charge of $50 million related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. Refer to Note 16 and Note 17.
|
•
|
A net charge of $16 million related to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17
|
•
|
A net provisional tax charge of $3,610 million as a result of the Tax Reform Act that was signed into law on December 22, 2017. Refer to Note 14.
|
•
|
Charges of $667 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $295 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
A charge of $225 million as a result of a cash contribution to The Coca-Cola Foundation. Refer to Note 17.
|
•
|
A gain of $150 million related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value. Refer to Note 2 and Note 17.
|
•
|
Charges of $105 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
A net charge of $55 million related to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 17.
|
•
|
Charges of $26 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 and Note 17.
|
•
|
Charges of $369 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $262 million due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 17 and Note 18.
|
•
|
Charges of $45 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
A benefit of $1,292 million, net of transaction costs, as a result of the deconsolidation of our German bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $199 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $106 million due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 17 and Note 18.
|
•
|
A charge of $100 million as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 17.
|
•
|
A net tax charge of $83 million primarily related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. Refer to Note 14.
|
•
|
Charges of $52 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $1,089 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
A charge of $80 million resulting from the accrual of tax on temporary differences related to the investment in foreign subsidiaries that are now expected to reverse in the foreseeable future. Refer to Note 14.
|
•
|
A charge of $76 million due to the write-down we recorded related to our receivables from our bottling partner in Venezuela. Refer to Note 1 and Note 17.
|
•
|
Charges of $73 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $59 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
Charges of $799 million due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17.
|
•
|
Charges of $165 million due to the Company's productivity and reinvestment program. Refer to Note 17 and Note 18.
|
•
|
Charges of $153 million related to the impairment of certain intangible assets. Refer to Note 17.
|
•
|
Charges of $127 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17.
|
•
|
Charges of $118 million due to pension settlement charges primarily as a result of our refranchising activities. Refer to Note 2 and Note 17.
|
•
|
A charge of $100 million as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 17.
|
•
|
A charge of $72 million as a result of remeasuring our net monetary assets denominated in Egyptian pounds. Refer to Note 17.
|
(a)
|
The following documents are filed as part of this report:
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
•
|
may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
|
|||
|
|||
4.1
|
|
As permitted by the rules of the SEC, the Company has not filed certain instruments defining the rights of holders of long-term debt of the Company or consolidated subsidiaries under which the total amount of securities authorized does not exceed 10 percent of the total assets of the Company and its consolidated subsidiaries. The Company agrees to furnish to the SEC, upon request, a copy of any omitted instrument.
|
|
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
4.32
|
|
Indenture, dated as of July 30, 1991, between Coca-Cola Refreshments USA, Inc. and Deutsche Bank Trust Company Americas, as trustee — incorporated herein by reference to Exhibit 4.1 to Coca-Cola Refreshments USA, Inc.'s Current Report on Form 8-K dated July 30, 1991.
|
|
4.33
|
|
First Supplemental Indenture, dated as of January 29, 1992, to the Indenture, dated as of July 30, 1991, between the Coca-Cola Refreshments USA, Inc. and Deutsche Bank Trust Company Americas, as trustee —incorporated herein by reference to Exhibit 4.01 to Coca-Cola Refreshments USA, Inc.'s Current Report on Form 8-K dated January 29, 1992.
|
|
4.34
|
|
Second Supplemental Indenture, dated as of June 22, 2017, to Amended and Restated Indenture, dated as of July 30, 1991, as amended, among Coca-Cola Refreshments USA, Inc., the Company and Deutsche Bank Trust Company Americas, as trustee — incorporated herein by reference to Exhibit 4.1 to Coca-Cola Refreshments USA, Inc.'s Current Report on Form 8-K dated June 23, 2017.
|
|
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|||
|
|||
|
|||
|
|
||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
|||
|
|||
|
|||
|
|
||
|
|||
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
||
|
|
||
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
101
|
|
The following financial information from The Coca-Cola Company's Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015, (iii) Consolidated Balance Sheets as of December 31, 2017 and 2016, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015, (v) Consolidated Statements of Shareowners' Equity for the years ended December 31, 2017, 2016 and 2015 and (vi) the Notes to Consolidated Financial Statements.
|
*
|
Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of Form 10-K.
|
|
THE COCA-COLA COMPANY
|
|
|||
|
(Registrant)
|
|
|||
|
By:
|
|
/s/ JAMES QUINCEY
|
|
|
|
|
|
James R. Quincey
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 23, 2018
|
|
*By:
|
|
/s/ JENNIFER MANNING
|
|
|
Jennifer Manning
Attorney-in-fact
|
|
|
|
|
|
February 23, 2018
|
JAMES R. QUINCEY
|
|
ADDRESS REPLY TO:
|
PRESIDENT & CHIEF EXECUTIVE OFFICER
|
|
P.O. BOX 1734
|
THE COCA-COLA COMPANY
|
|
ATLANTA, GA 30301
|
|
|
-----------
|
|
|
+1-404 676-9980
|
|
|
FAX: +1-404 598-9980
|
•
|
Your principal place of assignment will be Atlanta, Georgia.
|
•
|
Your annual base salary for your new position will be $550,000.
|
•
|
You will continue to be eligible to participate in the annual Performance Incentive Plan. The target annual incentive for a Job Grade 22G is 125% of annual base salary. The actual amount of an incentive award may vary and is based on individual performance and the financial performance of the Company. Awards are made at the discretion of the Compensation Committee of the Board of Directors based upon recommendations by Senior Management. The plan may be modified from time to time.
|
•
|
You will continue to be eligible to participate in The Coca-Cola Company’s Long-Term Incentive program. Awards are made at the discretion of the Compensation Committee of the Board of Directors based upon recommendations by Senior Management. You will be eligible to receive long-term incentive awards within guidelines for the job grade assigned to your position and based upon your personal performance, Company performance, and leadership potential to add value to the Company in the future. As a discretionary program, the award timing, frequency, size and mix of award vehicles are variable.
|
•
|
You are expected to continue to maintain share ownership pursuant to the Company’s share ownership guidelines at a level equal to four times your base salary. Because this represents an increase from your prior target level, you will have an additional two years, or until December 31, 2021, to meet your requirement. You will be asked to provide information in December each year on your progress toward your ownership goal, and that information will be reviewed with the Compensation Committee of the Board of Directors the following February.
|
•
|
You will be eligible for the Company’s Financial Planning program which provides reimbursement of certain financial planning services, up to $10,000 at Job Grade 22 annually, subject to taxes and withholding.
|
•
|
You will continue to be eligible for the Emory Executive Health benefit which includes a comprehensive physical exam and one-on-one medical and lifestyle management consultation.
|
•
|
If you have not done so already, you are required to enter into the Agreement on Confidentiality, Non-Competition, and Non-Solicitation, as well as the Agreement Covering Inventions, Discoveries, Copyrightable Material, Trade Secrets, and Confidential Information, effective immediately (enclosed).
|
•
|
This letter is provided as information and does not constitute an employment contract.
|
JAMES R. QUINCEY
|
|
ADDRESS REPLY TO:
|
PRESIDENT & CHIEF EXECUTIVE OFFICER
|
|
P.O. BOX 1734
|
THE COCA-COLA COMPANY
|
|
ATLANTA, GA 30301
|
|
|
-----------
|
|
|
+1-404 676-9980
|
|
|
FAX: +1-404 598-9980
|
•
|
Your title will remain President, Pacific Group.
|
•
|
You will assume responsibility for the Bottling Investments Group.
|
•
|
Your principal place of assignment will remain in Singapore. Your employer in Singapore will continue to be Pacific Refreshments Pte. Ltd.
|
•
|
Your annual base salary for your new position will be $550,000.
|
•
|
You will continue to be eligible to participate in the annual Performance Incentive Plan. This is an important, variable element of your total compensation. Your incentive opportunity is between 0% and 250% (maximum) of your annual base salary. Any payment will depend on both the business performance and your personal contributions. Awards are made at the discretion of the Compensation Committee of the Board of Directors based upon recommendations by Senior Management. As a discretionary program, the performance factors, eligibility criteria, payment frequency, award opportunity levels and other provisions are variable. The plan may be modified from time to time.
|
•
|
You will continue to be eligible to participate in The Coca-Cola Company’s Long-Term Incentive (LTI) program. Awards are made at the discretion of the Compensation Committee of the Board of Directors based upon recommendations by Senior Management. You will be eligible to receive LTI awards within guidelines for the job grade assigned to your position, and based upon your leadership potential to impact the Company’s future growth. As a discretionary program, eligibility criteria, award opportunity levels, the award timing, frequency, size and mix of award vehicles are variable
|
•
|
You are expected to continue to maintain share ownership pursuant to the Company’s share ownership guidelines at a level equal to four times your base salary. You will be asked to provide information in December each year on your progress toward your ownership goal, and that information will be reviewed with the Compensation Committee of the Board of Directors the following February.
|
•
|
You will continue to be eligible for the Company’s Financial Planning Reimbursement Program which provides reimbursement of certain financial planning services, up to $10,000 annually, subject to taxes and withholding.
|
•
|
You will continue to be eligible for the Emory Executive Health benefit which includes a comprehensive physical exam and one-on-one medical and lifestyle management consultation.
|
•
|
As a mobile assignee, you will continue to participate in the Global Mobility Tier 1 HQ Program and be provided the standard benefits of that program. The duration and type of assignment are contingent upon the business needs of the Company provided suitable performance standards are maintained. The Code of Business Conduct, Confidentiality Agreements, or any other document related to knowledge you acquire of Company business or conducting business remain in effect during international assignments.
|
•
|
You are required to enter into the Agreement on Confidentiality, Non-Competition, and Non-Solicitation, as well as the Agreement Covering Inventions, Discoveries, Copyrightable Material, Trade Secrets, and Confidential Information, effective immediately (enclosed).
|
•
|
This letter is provided as information and does not constitute an employment contract.
|
Agreement Date
|
May 18, 2016
|
Payment Date
|
February 28, 2018
|
(a)
|
Condition for the Award.
Except as provided in (1)(b), the payment shall be made only if the Recipient is, and has continuously been, employed by the Company since the date of this Agreement through the Payment Date.
|
(b)
|
In the event, the Recipient is involuntarily terminated due to a reduction in workforce, internal reorganization, or job elimination and properly, timely and unconditionally executes a general release and agreement on confidentiality, non-competition, non-solicitation and non-disparagement in a form acceptable to the Company in its sole discretion, the award will be paid on the date of separation from service.
|
(c)
|
Recipient shall have no rights to the Award, including but not limited to rights to transfer, pledge, or hypothecate the Award until the Award is paid.
|
(d)
|
Recipient shall not be entitled to defer payment of any amounts under this Agreement.
|
(e)
|
The Recipient shall indicate his or her acceptance of this Agreement by signing and returning this Agreement.
|
(2)
|
Each notice relating to this award shall be in writing. All notices to the Company shall be addressed to the Secretary, The Coca-Cola Company, One Coca-Cola Plaza, Atlanta, Georgia 30313. All notices to the Recipient shall be addressed to the address on record of the Recipient specified on the face page of this Agreement. Either the Company or the Recipient may designate a different address by written notice to the other. Written notice to said addresses shall be effective to bind the Company, the Recipient and the Recipient's representatives and beneficiaries.
|
(3)
|
The Award will be paid in cash less all applicable federal and state tax withholdings, including any hypothetical taxes required under the Global Mobility Program. The Recipient acknowledges that the ultimate liability for any and all taxes is the responsibility and liability of the Recipient.
|
(4)
|
The Recipient hereby agrees that (a) any change, interpretation, determination or modification of this Agreement by the Company shall be final and conclusive for all purposes and on all persons including the Company and the Recipient; and (b) this Agreement shall not affect in any way the right of the Recipient’s employer to terminate or change the employment of the Recipient.
|
(6)
|
If any of the terms of this Agreement may in the opinion of the Company conflict or be inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Company reserves the right to modify this Agreement to be consistent with applicable laws or regulations.
|
(7)
|
The Recipient consents to and acknowledges that:
|
(a)
|
the Award is discretionary in nature;
|
(b)
|
the Award is a potential bonus payment not paid in lieu of any cash salary compensation and not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any termination, severance, resignation, redundancy, end of service payments, bonuses, long-service awards, life or accident insurance benefits, pension or retirement benefits or similar payments; and
|
(c)
|
the Agreement set forth the entire understanding between the Recipient and the Company regarding the Award and supercedes all prior oral and written agreements pertaining to this award.
|
(8)
|
This Agreement has been made in and shall be construed and enforced under and in accordance with the laws of the State of Delaware, USA.
|
|
Year Ended December 31,
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
|||||
(In millions except ratios)
|
|
|
|||||||||||||
EARNINGS:
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes and changes in accounting principles
|
$
|
6,742
|
|
$
|
8,136
|
|
$
|
9,605
|
|
$
|
9,325
|
|
$
|
11,477
|
|
Fixed charges
|
902
|
|
804
|
|
931
|
|
569
|
|
553
|
|
|||||
Less:
|
|
|
|
|
|
||||||||||
Capitalized interest, net
|
(5
|
)
|
(3
|
)
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
|||||
Equity (income) loss — net of dividends
|
(628
|
)
|
(449
|
)
|
(122
|
)
|
(371
|
)
|
(201
|
)
|
|||||
Adjusted earnings
|
$
|
7,011
|
|
$
|
8,488
|
|
$
|
10,413
|
|
$
|
9,522
|
|
$
|
11,828
|
|
FIXED CHARGES:
|
|
|
|
|
|
||||||||||
Gross interest incurred
|
$
|
846
|
|
$
|
736
|
|
$
|
857
|
|
$
|
484
|
|
$
|
464
|
|
Interest portion of rent expense
|
56
|
|
68
|
|
74
|
|
85
|
|
89
|
|
|||||
Total fixed charges
|
$
|
902
|
|
$
|
804
|
|
$
|
931
|
|
$
|
569
|
|
$
|
553
|
|
Ratios of earnings to fixed charges
|
7.8
|
|
10.6
|
|
11.2
|
|
16.7
|
|
21.4
|
|
Subsidiaries of The Coca-Cola Company
As of December 31, 2017
|
|
|
Organized Under
Laws of:
|
The Coca-Cola Company
|
Delaware
|
Subsidiaries:
|
|
ACCBC Holding Company LLC
|
Georgia
|
Atlantic Industries
|
Cayman Islands
|
Barlan, Inc.
|
Delaware
|
Beverage Brands S.R.L.
|
Peru
|
Beverage Services Limited
|
United Kingdom
|
Caribbean Refrescos, Inc.
|
Delaware
|
CCHBC Grouping, Inc.
|
Delaware
|
Coca-Cola (China) Investment Limited
|
China
|
Coca-Cola (Japan) Company, Limited
|
Japan
|
Coca-Cola Africa (Pty) Limited
|
South Africa
|
Coca-Cola Beverages (Shanghai) Company Limited
|
China
|
Coca-Cola Beverages Africa (Pty) Ltd.
|
South Africa
|
Coca-Cola Beverages Asia Holdings SARL
|
Luxembourg
|
Coca-Cola Beverages Vietnam Ltd.
|
Vietnam
|
Coca-Cola de Chile S.A.
|
Chile
|
Coca-Cola Financial Corporation
|
Delaware
|
Coca-Cola Holdings (Overseas) Limited
|
Delaware
|
Coca-Cola Holdings (United Kingdom) Limited
|
United Kingdom
|
Coca-Cola Holdings Africa Limited
|
United Kingdom
|
Coca-Cola Holdings West Japan, Inc.
|
Delaware
|
Coca-Cola India Private Limited
|
India
|
Coca-Cola Indochina Pte Ltd
|
Singapore
|
Coca-Cola Industrias Limitada - Brazil
|
Brazil
|
Coca-Cola Industrias, Sociedad de Responsabilidad Limitada
|
Costa Rica
|
Coca-Cola Midi S.A.S.
|
France
|
Coca-Cola Oasis LLC
|
Delaware
|
Coca-Cola Overseas Parent Limited
|
Delaware
|
Coca-Cola Refreshments Canada Company
|
Nova Scotia
|
Coca-Cola Refreshments USA, Inc.
|
Delaware
|
Coca-Cola South Asia (India) Holdings Limited
|
Hong Kong
|
Coca-Cola South Asia Holdings, Inc.
|
Delaware
|
Coca-Cola South Pacific Pty Limited
|
Australia
|
Conco Limited
|
Cayman Islands
|
Corporacion Inca Kola Peru S.R.L.
|
Peru
|
Dulux CBAI 2003 B.V.
|
Netherlands
|
Energy Brands Inc.
|
New York
|
European Refreshments
|
Ireland
|
Fresh Trading Limited
|
United Kingdom
|
Hindustan Coca-Cola Beverages Private Limited
|
India
|
Hindustan Coca-Cola Holdings Private Limited
|
India
|
Hindustan Coca-Cola Overseas Holdings Pte. Limited
|
Singapore
|
Luxembourg CB 2002 S.a.r.l.
|
Luxembourg
|
Subsidiaries of The Coca-Cola Company
As of December 31, 2017
|
|
continued from page 1
|
|
|
Organized Under
Laws of:
|
Middle Eastern Refreshments Holdings Ltd.
|
United Arab Emirates
|
Middle Eastern Refreshments Ltd.
|
United Arab Emirates
|
Pacific Refreshments Pte. Ltd.
|
Singapore
|
Recofarma Industria do Amazonas Ltda.
|
Brazil
|
Red Crown Cap Designated Activity Company
|
Ireland
|
Red Life Reinsurance Limited
|
Bermuda
|
Red Re Captive Insurance Company, Inc.
|
Georgia
|
Refreshment Product Services, Inc.
|
Delaware
|
S.A. Coca-Cola Services N.V.
|
Belgium
|
Servicios Integrados de Administracion y Alta Gerencia, S. de R.L. de C.V.
|
Mexico
|
Servicios y Productos para Bebidas Refrescantes S.R.L.
|
Argentina
|
The Coca-Cola Export Corporation
|
Delaware
|
The Coca-Cola Trading Company LLC
|
Delaware
|
The Inmex Corporation
|
Florida
|
Varoise de Concentres S.A.S.
|
France
|
Xiamen Culiangwang Beverage Technology Co., Ltd
|
China
|
1.
|
Registration Statement Number 2-88085 on Form S-8
|
2.
|
Registration Statement Number 333-78763 on Form S-8
|
3.
|
Registration Statement Number 33-45763 on Form S-3
|
4.
|
Registration Statement Number 333-27607 on Form S-8
|
5.
|
Registration Statement Number 333-35298 on Form S-8
|
6.
|
Registration Statement Number 333-83290 on Form S-8
|
7.
|
Registration Statement Number 333-88096 on Form S-8
|
8.
|
Registration Statement Number 333-150447 on Form S-8
|
9.
|
Registration Statement Number 333-169724 on Form S-3
|
10.
|
Registration Statement Number 333-179707 on Form S-8
|
11.
|
Registration Statement Number 333-186948 on Form S-8
|
12.
|
Registration Statement Number 333-186949 on Form S-8
|
13.
|
Registration Statement Number 333-194214 on Form S-8
|
14.
|
Registration Statement Number 333-194215 on Form S-8
|
15.
|
Registration Statement Number 333-195553 on Form S-8
|
16.
|
Registration Statement Number 333-207643 on Form S-8
|
17.
|
Registration Statement Number 333-214273 on Form S-3
|
18.
|
Registration Statement Number 333-221170 on Form S-8
|
|
Date: February 23, 2018
|
|
/s/ JAMES QUINCEY
|
|
James R. Quincey
|
|
President and Chief Executive Officer
|
|
Date: February 23, 2018
|
|
/s/ KATHY N. WALLER
|
|
Kathy N. Waller
|
|
Executive Vice President, Chief Financial Officer
and President, Enabling Services |
|
/s/ JAMES QUINCEY
|
|
James R. Quincey
|
|
President and Chief Executive Officer
|
|
February 23, 2018
|
|
|
|
/s/ KATHY N. WALLER
|
|
Kathy N. Waller
|
|
Executive Vice President, Chief Financial Officer
and President, Enabling Services |
|
February 23, 2018
|