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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
(State or other jurisdiction of incorporation or organization)
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58-0628465
(I.R.S. Employer Identification No.)
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One Coca-Cola Plaza, Atlanta, Georgia
(Address of principal executive offices)
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30313
(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.25 Par Value
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New York Stock Exchange
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Floating Rate Notes Due 2019
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New York Stock Exchange
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Floating Rate Notes Due 2019
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New York Stock Exchange
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0.000% Notes Due 2021
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New York Stock Exchange
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1.125% Notes Due 2022
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New York Stock Exchange
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0.75% Notes Due 2023
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New York Stock Exchange
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0.500% Notes Due 2024
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New York Stock Exchange
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1.875% Notes Due 2026
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New York Stock Exchange
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1.125% Notes Due 2027
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New York Stock Exchange
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1.625% Notes Due 2035
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New York Stock Exchange
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1.100% Notes Due 2036
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New York Stock Exchange
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Page
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Part I
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Part II
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Part III
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Part IV
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•
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Europe, Middle East and Africa
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•
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Latin America
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•
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North America
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•
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Asia Pacific
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•
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Bottling Investments
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•
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"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;
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•
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"syrups" means beverage ingredients produced by combining concentrates and, depending on the product, sweeteners and added water;
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•
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"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;
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•
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"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
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•
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"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.).
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•
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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
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•
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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").
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•
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sparkling soft drinks
: Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Schweppes,
*
Sprite, Thums Up;
|
•
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water, enhanced water and sports drinks
: Aquarius, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade;
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•
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juice, dairy and plant-based beverages
: AdeS, Del Valle, innocent, Minute Maid, Minute Maid Pulpy, Simply, ZICO; and
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•
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tea and coffee
: Ayataka, Costa, FUZE TEA, Georgia, Gold Peak, HONEST TEA.
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•
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Certain Coca-Cola system bottlers distribute certain brands of 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 Coca-Cola system bottlers.
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•
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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.
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•
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We and certain of our bottling partners distribute products of fairlife, LLC ("fairlife"), our joint venture with Select Milk Producers, Inc., a dairy cooperative, including fairlife ultra-filtered milk and Core Power, a high-protein milk shake, in the United States and Canada.
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•
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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 (nationwide), 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
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•
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Coca-Cola European Partners plc ("CCEP"), which has bottling and distribution operations in Andorra, Belgium, continental France, Germany, Great Britain, Iceland, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain and Sweden;
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•
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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;
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•
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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
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•
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Swire Beverages, which has bottling and distribution operations in 11 provinces and the Shanghai Municipality in the eastern and southern areas of mainland China, Hong Kong, Taiwan, and territories in 13 states in the western United States.
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•
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below a "safe harbor" threshold that may be established;
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•
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naturally occurring;
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•
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the result of necessary cooking; or
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•
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subject to another applicable exemption.
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Principal Concentrate and/or Syrup Plants
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Principal Beverage Manufacturing/Bottling Plants
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Distribution and Storage Warehouses
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||||||||||||
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Owned
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Leased
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Owned
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Leased
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Owned
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Leased
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||||||
Europe, Middle East & Africa
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6
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|
|
—
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|
|
—
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|
|
—
|
|
|
—
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|
|
1
|
|
Latin America
|
5
|
|
|
—
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|
|
—
|
|
|
—
|
|
|
2
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|
|
6
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|
North America
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11
|
|
|
—
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|
|
9
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|
|
1
|
|
|
—
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|
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41
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|
Asia Pacific
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6
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|
|
—
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|
|
—
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|
|
—
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|
|
2
|
|
|
9
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|
Bottling Investments
|
—
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|
|
—
|
|
|
45
|
|
|
5
|
|
|
64
|
|
|
69
|
|
Corporate
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
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|
|
7
|
|
Total
1
|
31
|
|
|
—
|
|
|
54
|
|
|
6
|
|
|
68
|
|
|
133
|
|
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 29, 2018 through October 26, 2018
|
2,584,881
|
|
|
$
|
45.93
|
|
|
2,584,800
|
|
|
35,604,612
|
|
October 27, 2018 through November 23, 2018
|
4,499,050
|
|
|
49.25
|
|
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3,584,201
|
|
|
32,020,411
|
|
|
November 24, 2018 through December 31, 2018
|
186,525
|
|
|
48.48
|
|
|
—
|
|
|
32,020,411
|
|
|
Total
|
7,270,456
|
|
|
$
|
48.05
|
|
|
6,169,001
|
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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.
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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).
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December 31,
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2013
|
|
2014
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2015
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|
2016
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|
2017
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|
2018
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||||||
The Coca-Cola Company
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$
|
100
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|
$
|
105
|
|
$
|
111
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|
$
|
110
|
|
$
|
126
|
|
$
|
135
|
|
Peer Group Index
|
100
|
|
113
|
|
128
|
|
142
|
|
158
|
|
128
|
|
||||||
S&P 500 Index
|
100
|
|
114
|
|
115
|
|
129
|
|
157
|
|
150
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|||||
(In millions except per share data)
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|
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||||||||||||||||
SUMMARY OF OPERATIONS
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Net operating revenues
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$
|
31,856
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|
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
$
|
44,294
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|
|
$
|
45,998
|
|
Net income from continuing operations
|
6,727
|
|
|
1,182
|
|
|
6,550
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|
|
7,366
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|
|
7,124
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|||||
Net income attributable to shareowners of
The Coca-Cola Company
|
6,434
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|
1,248
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|
6,527
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|
|
7,351
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|
|
7,098
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|||||
PER SHARE DATA
|
|
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||||||||||
Basic net income from continuing operations
1
|
$
|
1.58
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|
|
$
|
0.28
|
|
|
$
|
1.51
|
|
|
$
|
1.69
|
|
|
$
|
1.62
|
|
Basic net income
|
1.51
|
|
|
0.29
|
|
|
1.51
|
|
|
1.69
|
|
|
1.62
|
|
|||||
Diluted net income from continuing operations
1
|
1.57
|
|
|
0.27
|
|
|
1.49
|
|
|
1.67
|
|
|
1.60
|
|
|||||
Diluted net income
|
1.50
|
|
|
0.29
|
|
|
1.49
|
|
|
1.67
|
|
|
1.60
|
|
|||||
Cash dividends
|
1.56
|
|
|
1.48
|
|
|
1.40
|
|
|
1.32
|
|
|
1.22
|
|
|||||
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
83,216
|
|
|
$
|
87,896
|
|
|
$
|
87,270
|
|
|
$
|
89,996
|
|
|
$
|
91,968
|
|
Long-term debt
|
25,364
|
|
|
31,182
|
|
|
29,684
|
|
|
28,311
|
|
|
19,010
|
|
1
|
Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests.
|
•
|
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,
|
2018
|
|
2017
|
|
2016
|
|
Concentrate operations
|
64
|
%
|
51
|
%
|
40
|
%
|
Finished product operations
|
36
|
|
49
|
|
60
|
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
Year Ended December 31,
|
2018
|
|
2017
|
|
2016
|
|
Concentrate operations
|
85
|
%
|
78
|
%
|
76
|
%
|
Finished product operations
|
15
|
|
22
|
|
24
|
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
•
|
Disciplined growth
|
◦
|
Turning our passion for consumers into drinks people come back to again and again, whether that means less sugar, more vitamins, or exciting new flavors
|
◦
|
Building relevant brands people love and scaling them around the world quickly and consistently
|
◦
|
Using the Coca-Cola system advantage to put our drinks in more hands in more places more quickly than anyone else
|
•
|
Doing business the right way, not just the easy way
|
◦
|
Being leaders in responsible water use and giving back to nature and communities
|
◦
|
Contributing to the elimination of waste, including through package innovation, sharing of package innovation and recycling initiatives
|
◦
|
Caring for people and communities, with a special focus on women’s economic empowerment
|
•
|
Tapping into the passion of our people
|
◦
|
Building an inclusive culture of curiosity and empowerment where diverse perspectives are essential as we strive for progress, not perfection
|
•
|
offer reduced-, low- and 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, 2018
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Equity method investments
|
$
|
19,407
|
|
|
23
|
%
|
Debt securities classified as available-for-sale
|
4,993
|
|
|
6
|
|
|
Equity securities with readily determinable fair values
|
1,934
|
|
|
2
|
|
|
Debt securities classified as trading
|
44
|
|
|
*
|
|
|
Equity securities without readily determinable fair values
|
80
|
|
|
*
|
|
|
Total
|
$
|
26,458
|
|
|
32
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
December 31, 2018
|
Fair
Value
|
|
|
Carrying
Value
|
|
|
Difference
|
|
|||
Monster Beverage Corporation
|
$
|
5,026
|
|
|
$
|
3,573
|
|
|
$
|
1,453
|
|
Coca-Cola European Partners plc
|
4,033
|
|
|
3,551
|
|
|
482
|
|
|||
Coca-Cola FEMSA, S.A.B. de C.V.
|
3,401
|
|
|
1,714
|
|
|
1,687
|
|
|||
Coca-Cola HBC AG
|
2,681
|
|
|
1,260
|
|
|
1,421
|
|
|||
Coca-Cola Amatil Limited
|
1,325
|
|
|
656
|
|
|
669
|
|
|||
Coca-Cola Bottlers Japan Holdings Inc.
1
|
978
|
|
|
1,142
|
|
|
(164
|
)
|
|||
Embotelladora Andina S.A.
|
497
|
|
|
263
|
|
|
234
|
|
|||
Coca–Cola Consolidated, Inc.
2
|
440
|
|
|
138
|
|
|
302
|
|
|||
Coca-Cola İçecek A.Ş.
|
299
|
|
|
174
|
|
|
125
|
|
|||
Total
|
$
|
18,680
|
|
|
$
|
12,471
|
|
|
$
|
6,209
|
|
December 31, 2018
|
Carrying
Value
|
|
|
Percentage
of Total
Assets
|
|
|
Goodwill
|
$
|
10,263
|
|
|
12
|
%
|
Trademarks with indefinite lives
|
6,682
|
|
|
8
|
|
|
Bottlers' franchise rights with indefinite lives
|
51
|
|
|
*
|
|
|
Definite-lived intangible assets, net
|
168
|
|
|
*
|
|
|
Other intangible assets not subject to amortization
|
106
|
|
|
*
|
|
|
Total
|
$
|
17,270
|
|
|
21
|
%
|
*
|
Accounts for less than 1 percent of the Company's total assets.
|
|
Percent Change
|
|
||||||||||
|
2018 versus 2017
|
|
2017 versus 2016
|
|
||||||||
Year Ended December 31,
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
|
Unit Cases
1,2
|
|
|
Concentrate
Sales
|
|
|
Worldwide
|
2
|
%
|
|
3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Europe, Middle East & Africa
|
2
|
%
|
|
6
|
%
|
4
|
1
|
%
|
|
1
|
%
|
8
|
Latin America
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
(3
|
)
|
|
North America
|
1
|
|
|
(1
|
)
|
5
|
—
|
|
|
2
|
|
9
|
Asia Pacific
|
4
|
|
|
4
|
|
6
|
1
|
|
|
4
|
|
10
|
Bottling Investments
|
(15
|
)
|
3
|
N/A
|
|
|
(41
|
)
|
7
|
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, unit case volume for Bottling Investments for the year ended December 31, 2018 grew 11 percent.
|
4
|
After considering the impact of structural changes, concentrate sales volume for Europe, Middle East and Africa for the year ended December 31, 2018 grew 4 percent.
|
5
|
After considering the impact of structural changes, concentrate sales volume for North America for the year ended December 31, 2018 grew 1 percent.
|
6
|
After considering the impact of structural changes, concentrate sales volume for Asia Pacific for the year ended December 31, 2018 grew 5 percent.
|
7
|
After considering the impact of structural changes, unit case volume for Bottling Investments for the year ended December 31, 2017 declined 3 percent.
|
8
|
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.
|
9
|
After considering the impact of structural changes, concentrate sales volume for North America for the year ended December 31, 2017 was even.
|
|
|
|
|
|
|
|
Percent Change
|
||||||||
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|||
(In millions except percentages and per share data)
|
|
|
|
|
|
|
|
||||||||
NET OPERATING REVENUES
|
$
|
31,856
|
|
|
$
|
35,410
|
|
|
$
|
41,863
|
|
|
(10)%
|
|
(15)%
|
Cost of goods sold
|
11,770
|
|
|
13,255
|
|
|
16,465
|
|
|
(11)
|
|
(19)
|
|||
GROSS PROFIT
|
20,086
|
|
|
22,155
|
|
|
25,398
|
|
|
(9)
|
|
(13)
|
|||
GROSS PROFIT MARGIN
|
63.1
|
%
|
|
62.6
|
%
|
|
60.7
|
%
|
|
|
|
|
|||
Selling, general and administrative expenses
|
10,307
|
|
|
12,654
|
|
|
15,370
|
|
|
(19)
|
|
(18)
|
|||
Other operating charges
|
1,079
|
|
|
1,902
|
|
|
1,371
|
|
|
(43)
|
|
39
|
|||
OPERATING INCOME
|
8,700
|
|
|
7,599
|
|
|
8,657
|
|
|
14
|
|
(12)
|
|||
OPERATING MARGIN
|
27.3
|
%
|
|
21.5
|
%
|
|
20.7
|
%
|
|
|
|
|
|||
Interest income
|
682
|
|
|
677
|
|
|
642
|
|
|
1
|
|
6
|
|||
Interest expense
|
919
|
|
|
841
|
|
|
733
|
|
|
9
|
|
15
|
|||
Equity income (loss) — net
|
1,008
|
|
|
1,071
|
|
|
835
|
|
|
(6)
|
|
28
|
|||
Other income (loss) — net
|
(1,121
|
)
|
|
(1,764
|
)
|
|
(1,265
|
)
|
|
36
|
|
(39)
|
|||
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
|
8,350
|
|
|
6,742
|
|
|
8,136
|
|
|
24
|
|
(17)
|
|||
Income taxes from continuing operations
|
1,623
|
|
|
5,560
|
|
|
1,586
|
|
|
(71)
|
|
251
|
|||
Effective tax rate
|
19.4
|
%
|
|
82.5
|
%
|
|
19.5
|
%
|
|
|
|
|
|||
NET INCOME FROM CONTINUING OPERATIONS
|
6,727
|
|
|
1,182
|
|
|
6,550
|
|
|
469
|
|
(82)
|
|||
Income (loss) from discontinued operations (net of income taxes
of $126, $47 and $0, respectively)
|
(251
|
)
|
|
101
|
|
|
—
|
|
|
*
|
|
*
|
|||
CONSOLIDATED NET INCOME
|
6,476
|
|
|
1,283
|
|
|
6,550
|
|
|
405
|
|
(80)
|
|||
Less: Net income attributable to noncontrolling interests
|
42
|
|
|
35
|
|
|
23
|
|
|
22
|
|
55
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
6,434
|
|
|
$
|
1,248
|
|
|
$
|
6,527
|
|
|
416%
|
|
(81)%
|
*
|
Calculation is not meaningful.
|
|
Percent Change 2018 versus 2017
|
|||||||||||||||
|
Volume
1
|
|
|
Acquisitions & Divestitures
|
|
|
Price, Product &
Geographic Mix
|
|
|
Currency
Fluctuations
|
|
|
Accounting Changes
|
|
Total
|
|
Consolidated
|
3
|
%
|
|
(16
|
)%
|
|
2
|
%
|
|
(1
|
)%
|
|
2
|
%
|
(10
|
)%
|
Europe, Middle East & Africa
|
4
|
%
|
|
1
|
%
|
|
3
|
%
|
|
(1
|
)%
|
|
(3
|
)%
|
4
|
%
|
Latin America
|
1
|
|
|
—
|
|
|
10
|
|
|
(9
|
)
|
|
(3
|
)
|
—
|
|
North America
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
11
|
|
9
|
|
Asia Pacific
|
5
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(5
|
)
|
—
|
|
Bottling Investments
|
11
|
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
|
3
|
|
(64
|
)
|
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 price mix in all of the segment's business units as well as favorable product and package mix;
|
•
|
Latin America — favorable price mix and the impact of inflationary environments in certain markets;
|
•
|
North America — favorable pricing initiatives, offset by incremental freight costs;
|
•
|
Asia Pacific — favorably impacted as a result of pricing initiatives as well as product and package mix, offset by geographic mix; and
|
•
|
Bottling Investments — unfavorable price, product and package mix in certain bottling operations, offset by geographic mix.
|
|
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
|
)
|
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.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Europe, Middle East & Africa
|
22.8
|
%
|
|
20.7
|
%
|
|
16.8
|
%
|
|
Latin America
|
12.7
|
|
|
11.2
|
|
|
8.9
|
|
|
North America
|
36.7
|
|
|
24.9
|
|
1
|
15.8
|
|
1
|
Asia Pacific
|
15.4
|
|
|
13.5
|
|
|
11.4
|
|
|
Bottling Investments
|
12.1
|
|
|
29.3
|
|
1
|
46.8
|
|
1
|
Corporate
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Stock-based compensation expense
|
$
|
225
|
|
|
$
|
219
|
|
|
$
|
258
|
|
Advertising expenses
|
4,113
|
|
|
3,958
|
|
|
4,004
|
|
|||
Selling and distribution expenses
|
1,701
|
|
|
3,266
|
|
|
5,189
|
|
|||
Other operating expenses
|
4,268
|
|
|
5,211
|
|
|
5,919
|
|
|||
Selling, general and administrative expenses
|
$
|
10,307
|
|
|
$
|
12,654
|
|
|
$
|
15,370
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Europe, Middle East & Africa
|
$
|
(3
|
)
|
|
$
|
26
|
|
|
$
|
32
|
|
Latin America
|
4
|
|
|
7
|
|
|
74
|
|
|||
North America
|
175
|
|
|
241
|
|
|
134
|
|
|||
Asia Pacific
|
(4
|
)
|
|
10
|
|
|
1
|
|
|||
Bottling Investments
|
617
|
|
|
1,079
|
|
|
761
|
|
|||
Corporate
|
290
|
|
|
539
|
|
|
369
|
|
|||
Total
|
$
|
1,079
|
|
|
$
|
1,902
|
|
|
$
|
1,371
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
Europe, Middle East & Africa
|
42.7
|
%
|
|
47.7
|
%
|
|
42.4
|
%
|
Latin America
|
26.7
|
|
|
29.2
|
|
|
22.6
|
|
North America
|
28.2
|
|
|
34.1
|
|
|
30.2
|
|
Asia Pacific
|
26.2
|
|
|
28.3
|
|
|
25.5
|
|
Bottling Investments
|
(7.5
|
)
|
|
(12.7
|
)
|
|
0.0
|
|
Corporate
|
(16.3
|
)
|
|
(26.6
|
)
|
|
(20.7
|
)
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
Consolidated
|
27.3
|
%
|
|
21.5
|
%
|
|
20.7
|
%
|
Europe, Middle East & Africa
|
48.2
|
|
|
49.2
|
|
|
52.3
|
|
Latin America
|
58.4
|
|
|
56.1
|
|
|
52.1
|
|
North America
|
21.3
|
|
|
29.5
|
|
|
39.7
|
|
Asia Pacific
|
47.4
|
|
|
45.0
|
|
|
46.2
|
|
Bottling Investments
|
(17.2
|
)
|
|
(9.3
|
)
|
|
0.0
|
|
Corporate
|
*
|
|
|
*
|
|
|
*
|
|
*
|
Calculation is not meaningful.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Statutory U.S. federal tax rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
State and local income taxes — net of federal benefit
|
1.5
|
|
|
1.2
|
|
|
1.2
|
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S.
federal tax rate |
1.2
|
|
1,2
|
(9.7
|
)
|
|
(17.5
|
)
|
7
|
Equity income or loss
|
(2.4
|
)
|
|
(3.4
|
)
|
|
(3.0
|
)
|
|
Tax Reform Act
|
0.1
|
|
3
|
53.5
|
|
4
|
—
|
|
|
Excess tax benefits on stock-based compensation
|
(1.2
|
)
|
|
(2.0
|
)
|
|
—
|
|
|
Other — net
|
(0.8
|
)
|
|
7.9
|
|
5,6
|
3.8
|
|
8
|
Effective tax rate
|
19.4
|
%
|
|
82.5
|
%
|
|
19.5
|
%
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
331
|
|
|
$
|
302
|
|
|
$
|
168
|
|
|
Increase related to prior period tax positions
|
11
|
|
|
18
|
|
|
163
|
|
1
|
|||
Decrease related to prior period tax positions
|
(2
|
)
|
|
(13
|
)
|
|
—
|
|
|
|||
Increase related to current period tax positions
|
17
|
|
|
13
|
|
|
17
|
|
|
|||
Decrease related to settlements with taxing authorities
|
(4
|
)
|
|
—
|
|
|
(40
|
)
|
1
|
|||
Decrease due to lapse of the applicable statute of limitations
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
Increase (decrease) due to effect of foreign currency exchange rate changes
|
(17
|
)
|
|
11
|
|
|
(6
|
)
|
|
|||
Ending balance of unrecognized tax benefits
|
$
|
336
|
|
|
$
|
331
|
|
|
$
|
302
|
|
|
1
|
The net increase was 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,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Purchases of investments
|
$
|
(7,789
|
)
|
|
$
|
(17,296
|
)
|
|
$
|
(16,626
|
)
|
Proceeds from disposals of investments
|
14,977
|
|
|
16,694
|
|
|
17,842
|
|
|||
Acquisitions of businesses, equity method investments and nonmarketable
securities
|
(1,040
|
)
|
|
(3,809
|
)
|
|
(838
|
)
|
|||
Proceeds from disposals of businesses, equity method investments and
nonmarketable securities
|
1,362
|
|
|
3,821
|
|
|
1,035
|
|
|||
Purchases of property, plant and equipment
|
(1,347
|
)
|
|
(1,675
|
)
|
|
(2,262
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
245
|
|
|
104
|
|
|
150
|
|
|||
Other investing activities
|
(60
|
)
|
|
(93
|
)
|
|
(305
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
6,348
|
|
|
$
|
(2,254
|
)
|
|
$
|
(1,004
|
)
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Capital expenditures
|
$
|
1,347
|
|
|
$
|
1,675
|
|
|
$
|
2,262
|
|
Europe, Middle East & Africa
|
5.7
|
%
|
|
4.8
|
%
|
|
2.7
|
%
|
|||
Latin America
|
6.7
|
|
|
3.3
|
|
|
2.0
|
|
|||
North America
|
31.8
|
|
|
32.3
|
|
|
19.4
|
|
|||
Asia Pacific
|
2.3
|
|
|
3.0
|
|
|
4.7
|
|
|||
Bottling Investments
|
23.5
|
|
|
39.5
|
|
|
58.8
|
|
|||
Corporate
|
30.0
|
|
|
17.1
|
|
|
12.4
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Issuances of debt
|
$
|
27,339
|
|
|
$
|
29,857
|
|
|
$
|
27,281
|
|
Payments of debt
|
(30,568
|
)
|
|
(28,768
|
)
|
|
(25,615
|
)
|
|||
Issuances of stock
|
1,476
|
|
|
1,595
|
|
|
1,434
|
|
|||
Purchases of stock for treasury
|
(1,912
|
)
|
|
(3,682
|
)
|
|
(3,681
|
)
|
|||
Dividends
|
(6,644
|
)
|
|
(6,320
|
)
|
|
(6,043
|
)
|
|||
Other financing activities
|
(243
|
)
|
|
(91
|
)
|
|
79
|
|
|||
Net cash provided by (used in) financing activities
|
$
|
(10,552
|
)
|
|
$
|
(7,409
|
)
|
|
$
|
(6,545
|
)
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Number of shares repurchased (in millions)
|
39
|
|
|
82
|
|
|
86
|
|
|||
Average price per share
|
$
|
45.09
|
|
|
$
|
44.09
|
|
|
$
|
43.62
|
|
•
|
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
|
|
|
2019
|
|
|
2020-2021
|
|
|
2022-2023
|
|
|
2024 and
Thereafter
|
|
|||||
Short-term loans and notes payable:
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial paper borrowings
|
$
|
13,063
|
|
|
$
|
13,063
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Lines of credit and other short-term
borrowings
|
131
|
|
|
131
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Current maturities of long-term debt
2
|
4,999
|
|
|
4,999
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt, net of current maturities
2
|
25,230
|
|
|
—
|
|
|
7,203
|
|
|
6,463
|
|
|
11,564
|
|
|||||
Estimated interest payments
3
|
3,907
|
|
|
461
|
|
|
757
|
|
|
584
|
|
|
2,105
|
|
|||||
Accrued income taxes
4
|
4,364
|
|
|
378
|
|
|
652
|
|
|
1,128
|
|
|
2,206
|
|
|||||
Purchase obligations
5
|
14,840
|
|
|
8,344
|
|
|
1,512
|
|
|
1,066
|
|
|
3,918
|
|
|||||
Marketing obligations
6
|
4,260
|
|
|
2,333
|
|
|
1,035
|
|
|
458
|
|
|
434
|
|
|||||
Lease obligations
|
695
|
|
|
181
|
|
|
210
|
|
|
143
|
|
|
161
|
|
|||||
Held-for-sale obligations
7
|
1,722
|
|
|
1,722
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
73,211
|
|
|
$
|
31,612
|
|
|
$
|
11,369
|
|
|
$
|
9,842
|
|
|
$
|
20,388
|
|
1
|
Refer to
Note 11
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 11
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 made by the Company in future periods and excludes the noncash portion of debt, including any fair market value adjustments, 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, 2018
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 15
of Notes to Consolidated Financial Statements for information regarding income taxes. Accrued income taxes include $3,986 million related to the one-time transition tax required by the Tax Reform Act. Liabilities of $522 million for unrecognized tax benefits plus accrued interest and penalties were not included in the total above. At this time, the settlement period for these liabilities cannot be determined. In addition, any payments related to unrecognized tax benefits may be partially or fully 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,
|
2018
|
|
|
2017
|
|
All operating currencies
|
(1
|
)%
|
|
—
|
%
|
Brazilian real
|
(12
|
)%
|
|
11
|
%
|
Mexican peso
|
(2
|
)
|
|
(2
|
)
|
Australian dollar
|
(2
|
)
|
|
3
|
|
South African rand
|
3
|
|
|
10
|
|
British pound sterling
|
4
|
|
|
(6
|
)
|
Euro
|
5
|
|
|
1
|
|
Japanese yen
|
2
|
|
|
(3
|
)
|
December 31,
|
2018
|
|
|
2017
|
|
|
Increase (Decrease)
|
|
|
Percent Change
|
|
|||
Cash and cash equivalents
|
$
|
8,926
|
|
|
$
|
6,006
|
|
|
$
|
2,920
|
|
|
49
|
%
|
Short-term investments
|
2,025
|
|
|
9,352
|
|
|
(7,327
|
)
|
|
(78
|
)
|
|||
Marketable securities
|
5,013
|
|
|
5,317
|
|
|
(304
|
)
|
|
(6
|
)
|
|||
Trade accounts receivable — net
|
3,396
|
|
|
3,667
|
|
|
(271
|
)
|
|
(7
|
)
|
|||
Inventories
|
2,766
|
|
|
2,655
|
|
|
111
|
|
|
4
|
|
|||
Prepaid expenses and other assets
|
1,962
|
|
|
2,000
|
|
|
(38
|
)
|
|
(2
|
)
|
|||
Assets held for sale
|
—
|
|
|
219
|
|
|
(219
|
)
|
|
(100
|
)
|
|||
Assets held for sale — discontinued operations
|
6,546
|
|
|
7,329
|
|
|
(783
|
)
|
|
(11
|
)
|
|||
Equity method investments
|
19,407
|
|
|
20,856
|
|
|
(1,449
|
)
|
|
(7
|
)
|
|||
Other investments
|
867
|
|
|
1,096
|
|
|
(229
|
)
|
|
(21
|
)
|
|||
Other assets
|
4,139
|
|
|
4,230
|
|
|
(91
|
)
|
|
(2
|
)
|
|||
Deferred income tax assets
|
2,667
|
|
|
330
|
|
|
2,337
|
|
|
708
|
|
|||
Property, plant and equipment — net
|
8,232
|
|
|
8,203
|
|
|
29
|
|
|
—
|
|
|||
Trademarks with indefinite lives
|
6,682
|
|
|
6,729
|
|
|
(47
|
)
|
|
(1
|
)
|
|||
Bottlers' franchise rights with indefinite lives
|
51
|
|
|
138
|
|
|
(87
|
)
|
|
(63
|
)
|
|||
Goodwill
|
10,263
|
|
|
9,401
|
|
|
862
|
|
|
9
|
|
|||
Other intangible assets
|
274
|
|
|
368
|
|
|
(94
|
)
|
|
(26
|
)
|
|||
Total assets
|
$
|
83,216
|
|
|
$
|
87,896
|
|
|
$
|
(4,680
|
)
|
|
(5
|
)%
|
Accounts payable and accrued expenses
|
$
|
8,932
|
|
|
$
|
8,748
|
|
|
$
|
184
|
|
|
2
|
%
|
Loans and notes payable
|
13,194
|
|
|
13,205
|
|
|
(11
|
)
|
|
—
|
|
|||
Current maturities of long-term debt
|
4,997
|
|
|
3,298
|
|
|
1,699
|
|
|
52
|
|
|||
Accrued income taxes
|
378
|
|
|
410
|
|
|
(32
|
)
|
|
(8
|
)
|
|||
Liabilities held for sale
|
—
|
|
|
37
|
|
|
(37
|
)
|
|
(100
|
)
|
|||
Liabilities held for sale — discontinued operations
|
1,722
|
|
|
1,496
|
|
|
226
|
|
|
15
|
|
|||
Long-term debt
|
25,364
|
|
|
31,182
|
|
|
(5,818
|
)
|
|
(19
|
)
|
|||
Other liabilities
|
7,638
|
|
|
8,021
|
|
|
(383
|
)
|
|
(5
|
)
|
|||
Deferred income tax liabilities
|
1,933
|
|
|
2,522
|
|
|
(589
|
)
|
|
(23
|
)
|
|||
Total liabilities
|
$
|
64,158
|
|
|
$
|
68,919
|
|
|
$
|
(4,761
|
)
|
|
(7
|
)%
|
Net assets
|
$
|
19,058
|
|
|
$
|
18,977
|
|
|
$
|
81
|
|
1
|
—
|
%
|
1
|
Includes a decrease in net assets of
$2,035 million
resulting from foreign currency translation adjustments in various balance sheet line items.
|
•
|
Assets held for sale — discontinued operations decreased primarily due to a
$554 million
impairment charge and a $411 million allocation of goodwill to other reporting units. Refer to
Note 2
and
Note 17
of Notes to Consolidated Financial Statements.
|
•
|
Equity method investments decreased primarily due to the derecognition of our equity method interest in the Philippine bottling operations as well as other-than-temporary impairment charges of
$591 million
related to certain of our equity method investees. Refer to
Note 2
and
Note 17
of Notes to Consolidated Financial Statements.
|
•
|
Deferred income tax assets increased primarily as a result of our adoption of ASU 2016-16,
Intra-Entity Transfers of Assets Other Than Inventory
, which required us to record a deferred tax asset of
$2.9 billion
during the year ended
December 31, 2018
. Refer to
Note 1
and
Note 15
of Notes to Consolidated Financial Statements.
|
•
|
Goodwill increased primarily due to the acquisition of the Philippine bottling operations and the allocation of goodwill from CCBA to other reporting units. Refer to
Note 2
and
Note 9
of Notes to Consolidated Financial Statements.
|
•
|
Current maturities of long-term debt increased and long-term debt decreased primarily due to a portion of the Company's long-term debt maturing within the next 12 months and being reclassified as current. Current maturities of long-term
|
|
Page
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
(In millions except per share data)
|
|
|
|
||||||||
NET OPERATING REVENUES
|
$
|
31,856
|
|
|
$
|
35,410
|
|
|
$
|
41,863
|
|
Cost of goods sold
|
11,770
|
|
|
13,255
|
|
|
16,465
|
|
|||
GROSS PROFIT
|
20,086
|
|
|
22,155
|
|
|
25,398
|
|
|||
Selling, general and administrative expenses
|
10,307
|
|
|
12,654
|
|
|
15,370
|
|
|||
Other operating charges
|
1,079
|
|
|
1,902
|
|
|
1,371
|
|
|||
OPERATING INCOME
|
8,700
|
|
|
7,599
|
|
|
8,657
|
|
|||
Interest income
|
682
|
|
|
677
|
|
|
642
|
|
|||
Interest expense
|
919
|
|
|
841
|
|
|
733
|
|
|||
Equity income (loss) — net
|
1,008
|
|
|
1,071
|
|
|
835
|
|
|||
Other income (loss) — net
|
(1,121
|
)
|
|
(1,764
|
)
|
|
(1,265
|
)
|
|||
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
|
8,350
|
|
|
6,742
|
|
|
8,136
|
|
|||
Income taxes from continuing operations
|
1,623
|
|
|
5,560
|
|
|
1,586
|
|
|||
NET INCOME FROM CONTINUING OPERATIONS
|
6,727
|
|
|
1,182
|
|
|
6,550
|
|
|||
Income (loss) from discontinued operations (net of income taxes of $126,
$47 and $0, respectively)
|
(251
|
)
|
|
101
|
|
|
—
|
|
|||
CONSOLIDATED NET INCOME
|
6,476
|
|
|
1,283
|
|
|
6,550
|
|
|||
Less: Net income attributable to noncontrolling interests
|
42
|
|
|
35
|
|
|
23
|
|
|||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
6,434
|
|
|
$
|
1,248
|
|
|
$
|
6,527
|
|
|
|
|
|
|
|
||||||
Basic net income per share from continuing operations
1
|
$
|
1.58
|
|
|
$
|
0.28
|
|
|
$
|
1.51
|
|
Basic net income (loss) per share from discontinued operations
2
|
(0.07
|
)
|
|
0.02
|
|
|
—
|
|
|||
BASIC NET INCOME PER SHARE
|
$
|
1.51
|
|
|
$
|
0.29
|
|
3
|
$
|
1.51
|
|
Diluted net income per share from continuing operations
1
|
$
|
1.57
|
|
|
$
|
0.27
|
|
|
$
|
1.49
|
|
Diluted net income (loss) per share from discontinued operations
2
|
(0.07
|
)
|
|
0.02
|
|
|
—
|
|
|||
DILUTED NET INCOME PER SHARE
|
$
|
1.50
|
|
|
$
|
0.29
|
|
|
$
|
1.49
|
|
AVERAGE SHARES OUTSTANDING — BASIC
|
4,259
|
|
|
4,272
|
|
|
4,317
|
|
|||
Effect of dilutive securities
|
40
|
|
|
52
|
|
|
50
|
|
|||
AVERAGE SHARES OUTSTANDING — DILUTED
|
4,299
|
|
|
4,324
|
|
|
4,367
|
|
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 (loss) 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,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
(In millions)
|
|
|
|
||||||||
CONSOLIDATED NET INCOME
|
$
|
6,476
|
|
|
$
|
1,283
|
|
|
$
|
6,550
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Net foreign currency translation adjustments
|
(2,035
|
)
|
|
861
|
|
|
(626
|
)
|
|||
Net gains (losses) on derivatives
|
(7
|
)
|
|
(433
|
)
|
|
(382
|
)
|
|||
Net unrealized gains (losses) on available-for-sale securities
|
(34
|
)
|
|
188
|
|
|
17
|
|
|||
Net change in pension and other benefit liabilities
|
29
|
|
|
322
|
|
|
(53
|
)
|
|||
TOTAL COMPREHENSIVE INCOME
|
4,429
|
|
|
2,221
|
|
|
5,506
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
95
|
|
|
73
|
|
|
10
|
|
|||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
SHAREOWNERS OF THE COCA-COLA COMPANY
|
$
|
4,334
|
|
|
$
|
2,148
|
|
|
$
|
5,496
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
(In millions except par value)
|
|
|
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
8,926
|
|
|
$
|
6,006
|
|
Short-term investments
|
2,025
|
|
|
9,352
|
|
||
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
|
10,951
|
|
|
15,358
|
|
||
Marketable securities
|
5,013
|
|
|
5,317
|
|
||
Trade accounts receivable, less allowances of $489 and $477, respectively
|
3,396
|
|
|
3,667
|
|
||
Inventories
|
2,766
|
|
|
2,655
|
|
||
Prepaid expenses and other assets
|
1,962
|
|
|
2,000
|
|
||
Assets held for sale
|
—
|
|
|
219
|
|
||
Assets held for sale — discontinued operations
|
6,546
|
|
|
7,329
|
|
||
TOTAL CURRENT ASSETS
|
30,634
|
|
|
36,545
|
|
||
EQUITY METHOD INVESTMENTS
|
19,407
|
|
|
20,856
|
|
||
OTHER INVESTMENTS
|
867
|
|
|
1,096
|
|
||
OTHER ASSETS
|
4,139
|
|
|
4,230
|
|
||
DEFERRED INCOME TAX ASSETS
|
2,667
|
|
|
330
|
|
||
PROPERTY, PLANT AND EQUIPMENT — net
|
8,232
|
|
|
8,203
|
|
||
TRADEMARKS WITH INDEFINITE LIVES
|
6,682
|
|
|
6,729
|
|
||
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES
|
51
|
|
|
138
|
|
||
GOODWILL
|
10,263
|
|
|
9,401
|
|
||
OTHER INTANGIBLE ASSETS
|
274
|
|
|
368
|
|
||
TOTAL ASSETS
|
$
|
83,216
|
|
|
$
|
87,896
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
8,932
|
|
|
$
|
8,748
|
|
Loans and notes payable
|
13,194
|
|
|
13,205
|
|
||
Current maturities of long-term debt
|
4,997
|
|
|
3,298
|
|
||
Accrued income taxes
|
378
|
|
|
410
|
|
||
Liabilities held for sale
|
—
|
|
|
37
|
|
||
Liabilities held for sale — discontinued operations
|
1,722
|
|
|
1,496
|
|
||
TOTAL CURRENT LIABILITIES
|
29,223
|
|
|
27,194
|
|
||
LONG-TERM DEBT
|
25,364
|
|
|
31,182
|
|
||
OTHER LIABILITIES
|
7,638
|
|
|
8,021
|
|
||
DEFERRED INCOME TAX LIABILITIES
|
1,933
|
|
|
2,522
|
|
||
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
|
16,520
|
|
|
15,864
|
|
||
Reinvested earnings
|
63,234
|
|
|
60,430
|
|
||
Accumulated other comprehensive income (loss)
|
(12,814
|
)
|
|
(10,305
|
)
|
||
Treasury stock, at cost — 2,772 and 2,781 shares, respectively
|
(51,719
|
)
|
|
(50,677
|
)
|
||
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
|
16,981
|
|
|
17,072
|
|
||
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
2,077
|
|
|
1,905
|
|
||
TOTAL EQUITY
|
19,058
|
|
|
18,977
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
83,216
|
|
|
$
|
87,896
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
(In millions)
|
|
|
|
||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||||||
Consolidated net income
|
$
|
6,476
|
|
|
$
|
1,283
|
|
|
$
|
6,550
|
|
(Income) loss from discontinued operations
|
251
|
|
|
(101
|
)
|
|
—
|
|
|||
Net income from continuing operations
|
6,727
|
|
|
1,182
|
|
|
6,550
|
|
|||
Depreciation and amortization
|
1,086
|
|
|
1,260
|
|
|
1,787
|
|
|||
Stock-based compensation expense
|
225
|
|
|
219
|
|
|
258
|
|
|||
Deferred income taxes
|
(450
|
)
|
|
(1,256
|
)
|
|
(856
|
)
|
|||
Equity (income) loss — net of dividends
|
(457
|
)
|
|
(628
|
)
|
|
(449
|
)
|
|||
Foreign currency adjustments
|
(38
|
)
|
|
281
|
|
|
158
|
|
|||
Significant (gains) losses on sales of assets — net
|
189
|
|
|
1,459
|
|
|
1,146
|
|
|||
Other operating charges
|
558
|
|
|
1,218
|
|
|
647
|
|
|||
Other items
|
682
|
|
|
(269
|
)
|
|
(224
|
)
|
|||
Net change in operating assets and liabilities
|
(1,202
|
)
|
|
3,464
|
|
|
(225
|
)
|
|||
Net cash provided by operating activities
|
7,320
|
|
|
6,930
|
|
|
8,792
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
||||||
Purchases of investments
|
(7,789
|
)
|
|
(17,296
|
)
|
|
(16,626
|
)
|
|||
Proceeds from disposals of investments
|
14,977
|
|
|
16,694
|
|
|
17,842
|
|
|||
Acquisitions of businesses, equity method investments and nonmarketable securities
|
(1,040
|
)
|
|
(3,809
|
)
|
|
(838
|
)
|
|||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
|
1,362
|
|
|
3,821
|
|
|
1,035
|
|
|||
Purchases of property, plant and equipment
|
(1,347
|
)
|
|
(1,675
|
)
|
|
(2,262
|
)
|
|||
Proceeds from disposals of property, plant and equipment
|
245
|
|
|
104
|
|
|
150
|
|
|||
Other investing activities
|
(60
|
)
|
|
(93
|
)
|
|
(305
|
)
|
|||
Net cash provided by (used in) investing activities
|
6,348
|
|
|
(2,254
|
)
|
|
(1,004
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
||||||
Issuances of debt
|
27,339
|
|
|
29,857
|
|
|
27,281
|
|
|||
Payments of debt
|
(30,568
|
)
|
|
(28,768
|
)
|
|
(25,615
|
)
|
|||
Issuances of stock
|
1,476
|
|
|
1,595
|
|
|
1,434
|
|
|||
Purchases of stock for treasury
|
(1,912
|
)
|
|
(3,682
|
)
|
|
(3,681
|
)
|
|||
Dividends
|
(6,644
|
)
|
|
(6,320
|
)
|
|
(6,043
|
)
|
|||
Other financing activities
|
(243
|
)
|
|
(91
|
)
|
|
79
|
|
|||
Net cash provided by (used in) financing activities
|
(10,552
|
)
|
|
(7,409
|
)
|
|
(6,545
|
)
|
|||
CASH FLOWS FROM DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|||
Net cash provided by (used in) operating activities from discontinued operations
|
307
|
|
|
111
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities from discontinued operations
|
(421
|
)
|
|
(58
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities from discontinued operations
|
205
|
|
|
(38
|
)
|
|
—
|
|
|||
Net cash provided by (used in) discontinued operations
|
91
|
|
|
15
|
|
|
—
|
|
|||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS,
RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS
|
(262
|
)
|
|
241
|
|
|
(5
|
)
|
|||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH
EQUIVALENTS
|
|
|
|
|
|
||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
during the year
|
2,945
|
|
|
(2,477
|
)
|
|
1,238
|
|
|||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year
|
6,373
|
|
|
8,850
|
|
|
7,612
|
|
|||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year
|
9,318
|
|
|
6,373
|
|
|
8,850
|
|
|||
Less: Restricted cash and restricted cash equivalents at end of year
|
392
|
|
|
367
|
|
|
295
|
|
|||
Cash and cash equivalents at end of year
|
$
|
8,926
|
|
|
$
|
6,006
|
|
|
$
|
8,555
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
(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
|
4,259
|
|
|
4,288
|
|
|
4,324
|
|
|||
Treasury stock issued to employees related to stock compensation plans
|
48
|
|
|
53
|
|
|
50
|
|
|||
Purchases of stock for treasury
|
(39
|
)
|
|
(82
|
)
|
|
(86
|
)
|
|||
Balance at end of year
|
4,268
|
|
|
4,259
|
|
|
4,288
|
|
|||
COMMON STOCK
|
$
|
1,760
|
|
|
$
|
1,760
|
|
|
$
|
1,760
|
|
CAPITAL SURPLUS
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
15,864
|
|
|
14,993
|
|
|
14,016
|
|
|||
Stock issued to employees related to stock compensation plans
|
467
|
|
|
655
|
|
|
589
|
|
|||
Tax benefit (charge) from stock compensation plans
|
—
|
|
|
—
|
|
|
130
|
|
|||
Stock-based compensation expense
|
225
|
|
|
219
|
|
|
258
|
|
|||
Other activities
|
(36
|
)
|
|
(3
|
)
|
|
—
|
|
|||
Balance at end of year
|
16,520
|
|
|
15,864
|
|
|
14,993
|
|
|||
REINVESTED EARNINGS
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
60,430
|
|
|
65,502
|
|
|
65,018
|
|
|||
Adoption of accounting standards
1
|
3,014
|
|
|
—
|
|
|
—
|
|
|||
Net income attributable to shareowners of The Coca-Cola Company
|
6,434
|
|
|
1,248
|
|
|
6,527
|
|
|||
Dividends (per share — $1.56, $1.48 and $1.40 in 2018, 2017 and 2016, respectively)
|
(6,644
|
)
|
|
(6,320
|
)
|
|
(6,043
|
)
|
|||
Balance at end of year
|
63,234
|
|
|
60,430
|
|
|
65,502
|
|
|||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
(10,305
|
)
|
|
(11,205
|
)
|
|
(10,174
|
)
|
|||
Adoption of accounting standards
1
|
(409
|
)
|
|
—
|
|
|
—
|
|
|||
Net other comprehensive income (loss)
|
(2,100
|
)
|
|
900
|
|
|
(1,031
|
)
|
|||
Balance at end of year
|
(12,814
|
)
|
|
(10,305
|
)
|
|
(11,205
|
)
|
|||
TREASURY STOCK
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
(50,677
|
)
|
|
(47,988
|
)
|
|
(45,066
|
)
|
|||
Treasury stock issued to employees related to stock compensation plans
|
704
|
|
|
909
|
|
|
811
|
|
|||
Purchases of stock for treasury
|
(1,746
|
)
|
|
(3,598
|
)
|
|
(3,733
|
)
|
|||
Balance at end of year
|
(51,719
|
)
|
|
(50,677
|
)
|
|
(47,988
|
)
|
|||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
|
$
|
16,981
|
|
|
$
|
17,072
|
|
|
$
|
23,062
|
|
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
1,905
|
|
|
$
|
158
|
|
|
$
|
210
|
|
Net income attributable to noncontrolling interests
|
42
|
|
|
35
|
|
|
23
|
|
|||
Net foreign currency translation adjustments
|
53
|
|
|
38
|
|
|
(13
|
)
|
|||
Dividends paid to noncontrolling interests
|
(31
|
)
|
|
(15
|
)
|
|
(25
|
)
|
|||
Contributions by noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|||
Business combinations
|
101
|
|
|
1,805
|
|
|
—
|
|
|||
Deconsolidation of certain entities
|
—
|
|
|
(157
|
)
|
|
(34
|
)
|
|||
Other activities
|
7
|
|
|
41
|
|
|
(4
|
)
|
|||
TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
$
|
2,077
|
|
|
$
|
1,905
|
|
|
$
|
158
|
|
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2016 |
|
|||
Cash and cash equivalents
|
$
|
8,926
|
|
$
|
6,006
|
|
$
|
8,555
|
|
Cash and cash equivalents included in assets held for sale
|
—
|
|
13
|
|
49
|
|
|||
Cash and cash equivalents included in assets held for sale — discontinued
operations
|
151
|
|
97
|
|
—
|
|
|||
Cash and cash equivalents included in other assets
1
|
241
|
|
257
|
|
246
|
|
|||
Cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
9,318
|
|
$
|
6,373
|
|
$
|
8,850
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Balance at beginning of year
|
$
|
477
|
|
|
$
|
466
|
|
|
$
|
352
|
|
Net charges to costs and expenses
1
|
29
|
|
|
32
|
|
|
126
|
|
|||
Write-offs
|
(4
|
)
|
|
(10
|
)
|
|
(10
|
)
|
|||
Other
2
|
(13
|
)
|
|
(11
|
)
|
|
(2
|
)
|
|||
Balance at end of year
|
$
|
489
|
|
|
$
|
477
|
|
|
$
|
466
|
|
1
|
The 2016 amount was primarily related to concentrate sales receivables from our bottling partner in Venezuela. See "Hyperinflationary Economies" discussion below for additional information.
|
|
December 31, 2017
|
|
|
|
Cash, cash equivalents and short-term investments
|
$
|
13
|
|
|
Trade accounts receivable, less allowances
|
10
|
|
|
|
Inventories
|
11
|
|
|
|
Prepaid expenses and other assets
|
12
|
|
|
|
Other assets
|
7
|
|
|
|
Property, plant and equipment — net
|
85
|
|
|
|
Bottlers' franchise rights with indefinite lives
|
5
|
|
|
|
Goodwill
|
103
|
|
|
|
Other intangible assets
|
1
|
|
|
|
Allowance for reduction of assets held for sale
|
(28
|
)
|
|
|
Assets held for sale
|
$
|
219
|
|
1
|
Accounts payable and accrued expenses
|
$
|
22
|
|
|
Other liabilities
|
12
|
|
|
|
Deferred income taxes
|
3
|
|
|
|
Liabilities held for sale
|
$
|
37
|
|
2
|
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.
|
|
December 31, 2018
|
|
December 31, 2017
|
|
||
Cash, cash equivalents and short-term investments
|
$
|
151
|
|
$
|
97
|
|
Trade accounts receivable, less allowances
|
289
|
|
299
|
|
||
Inventories
|
305
|
|
299
|
|
||
Prepaid expenses and other assets
|
97
|
|
52
|
|
||
Equity method investments
|
5
|
|
7
|
|
||
Other assets
|
15
|
|
29
|
|
||
Property, plant and equipment — net
|
1,587
|
|
1,436
|
|
||
Goodwill
|
3,847
|
|
4,248
|
|
||
Other intangible assets
|
796
|
|
862
|
|
||
Allowance for reduction of assets held for sale
|
(546
|
)
|
—
|
|
||
Assets held for sale — discontinued operations
|
$
|
6,546
|
|
$
|
7,329
|
|
Accounts payable and accrued expenses
|
$
|
602
|
|
$
|
598
|
|
Loans and notes payable
|
641
|
|
404
|
|
||
Current maturities of long-term debt
|
6
|
|
6
|
|
||
Accrued income taxes
|
32
|
|
40
|
|
||
Long-term debt
|
12
|
|
19
|
|
||
Other liabilities
|
8
|
|
10
|
|
||
Deferred income taxes
|
421
|
|
419
|
|
||
Liabilities held for sale — discontinued operations
|
$
|
1,722
|
|
$
|
1,496
|
|
•
|
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, 2018
|
|
||||||||
|
As Reported
|
|
Balances without Adoption of ASC 606
|
|
Increase (Decrease) Due to Adoption
|
|
|
|||
Net operating revenues
|
$
|
31,856
|
|
$
|
31,191
|
|
$
|
665
|
|
1
|
Cost of goods sold
|
11,770
|
|
10,930
|
|
840
|
|
1
|
|||
Gross profit
|
20,086
|
|
20,261
|
|
(175
|
)
|
|
|||
Selling, general and administrative expenses
|
10,307
|
|
10,488
|
|
(181
|
)
|
|
|||
Operating income
|
8,700
|
|
8,694
|
|
6
|
|
|
|||
Income from continuing operations before income taxes
|
8,350
|
|
8,344
|
|
6
|
|
|
|||
Income taxes from continuing operations
|
1,623
|
|
1,626
|
|
3
|
|
|
|||
Net income from continuing operations
|
6,727
|
|
6,718
|
|
9
|
|
|
|||
Income (loss) from discontinued operations
|
(251
|
)
|
(253
|
)
|
2
|
|
|
|||
Consolidated net income
|
6,476
|
|
6,465
|
|
11
|
|
|
|||
Net income attributable to shareowners of The Coca-Cola Company
|
6,434
|
|
6,423
|
|
11
|
|
|
|
December 31, 2018
|
|
||||||||
|
As Reported
|
|
Balances without Adoption of ASC 606
|
|
Increase (Decrease) Due to Adoption
|
|
|
|||
ASSETS
|
|
|
|
|
|
|||||
Trade accounts receivable
|
$
|
3,396
|
|
$
|
3,302
|
|
$
|
94
|
|
1
|
Prepaid expenses and other assets
|
1,962
|
|
1,970
|
|
(8
|
)
|
|
|||
Total current assets
|
30,634
|
|
30,548
|
|
86
|
|
|
|||
Deferred income tax assets
|
2,667
|
|
2,649
|
|
18
|
|
|
|||
Total assets
|
83,216
|
|
83,112
|
|
104
|
|
|
|||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|||||
Accounts payable and accrued expenses
|
$
|
8,932
|
|
$
|
8,513
|
|
$
|
419
|
|
2
|
Total current liabilities
|
29,223
|
|
28,804
|
|
419
|
|
|
|||
Deferred income tax liabilities
|
1,933
|
|
2,002
|
|
(69
|
)
|
|
|||
Reinvested earnings
|
63,234
|
|
63,480
|
|
(246
|
)
|
|
|||
Total equity
|
19,058
|
|
19,304
|
|
(246
|
)
|
|
|||
Total liabilities and equity
|
83,216
|
|
83,112
|
|
104
|
|
|
|
United States
|
|
International
|
|
Total
|
|
|||
Year Ended December 31, 2018
|
|
|
|
||||||
Concentrate operations
|
$
|
4,571
|
|
$
|
15,886
|
|
$
|
20,457
|
|
Finished product operations
|
6,773
|
|
4,626
|
|
11,399
|
|
|||
Total
|
$
|
11,344
|
|
$
|
20,512
|
|
$
|
31,856
|
|
|
Fair Value with Changes Recognized in Income
|
|
Measurement Alternative
—
No Readily Determinable Fair Value
|
|
||
Marketable securities
|
$
|
278
|
|
$
|
—
|
|
Other investments
|
787
|
|
80
|
|
||
Other assets
|
869
|
|
—
|
|
||
Total equity securities
|
$
|
1,934
|
|
$
|
80
|
|
|
Year Ended December 31, 2018
|
||
Net gains (losses) recognized during the year related to equity securities
|
$
|
(250
|
)
|
Less: Net gains (losses) recognized during the year related to equity securities sold during the year
|
8
|
|
|
Net unrealized gains (losses) recognized during the year related to equity securities still held at the end of
the year
|
$
|
(258
|
)
|
|
|
Gross Unrealized
|
|
Estimated
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
|
Fair Value
|
|
||||
Trading securities
|
$
|
324
|
|
$
|
75
|
|
$
|
(4
|
)
|
|
$
|
395
|
|
Available-for-sale securities
|
1,276
|
|
685
|
|
(66
|
)
|
|
1,895
|
|
||||
Total equity securities
|
$
|
1,600
|
|
$
|
760
|
|
$
|
(70
|
)
|
|
$
|
2,290
|
|
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
||
Marketable securities
|
$
|
283
|
|
$
|
52
|
|
Other investments
|
—
|
|
953
|
|
||
Other assets
|
112
|
|
890
|
|
||
Total equity securities
|
$
|
395
|
|
$
|
1,895
|
|
|
Year Ended
|
|
|
|
December 31, 2017
|
|
|
Gross gains
|
$
|
61
|
|
Gross losses
|
(19
|
)
|
|
Proceeds
|
275
|
|
|
|
Gross Unrealized
|
|
Estimated
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
|
Fair Value
|
|
||||
December 31, 2018
|
|
|
|
|
|
||||||||
Trading securities
|
$
|
45
|
|
$
|
—
|
|
$
|
(1
|
)
|
|
$
|
44
|
|
Available-for-sale securities
|
4,901
|
|
119
|
|
(27
|
)
|
|
4,993
|
|
||||
Total debt securities
|
$
|
4,946
|
|
$
|
119
|
|
$
|
(28
|
)
|
|
$
|
5,037
|
|
December 31, 2017
|
|
|
|
|
|
||||||||
Trading securities
|
$
|
12
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
12
|
|
Available-for-sale securities
|
5,782
|
|
157
|
|
(27
|
)
|
|
5,912
|
|
||||
Total debt securities
|
$
|
5,794
|
|
$
|
157
|
|
$
|
(27
|
)
|
|
$
|
5,924
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
667
|
|
Marketable securities
|
44
|
|
4,691
|
|
|
12
|
|
4,970
|
|
||||
Other assets
|
—
|
|
302
|
|
|
—
|
|
275
|
|
||||
Total debt securities
|
$
|
44
|
|
$
|
4,993
|
|
|
$
|
12
|
|
$
|
5,912
|
|
|
Cost
|
|
Estimated
Fair Value |
|
||
Within 1 year
|
$
|
685
|
|
$
|
682
|
|
After 1 year through 5 years
|
3,871
|
|
3,948
|
|
||
After 5 years through 10 years
|
106
|
|
122
|
|
||
After 10 years
|
239
|
|
241
|
|
||
Total
|
$
|
4,901
|
|
$
|
4,993
|
|
Year Ended December 31,
|
2018
|
|
2017
|
|
||
Gross gains
|
$
|
22
|
|
$
|
7
|
|
Gross losses
|
(27
|
)
|
(13
|
)
|
||
Proceeds
|
13,710
|
|
13,930
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Raw materials and packaging
|
$
|
1,862
|
|
|
$
|
1,729
|
|
Finished goods
|
692
|
|
|
693
|
|
||
Other
|
212
|
|
|
233
|
|
||
Total inventories
|
$
|
2,766
|
|
|
$
|
2,655
|
|
|
|
|
Fair Value
1,2
|
||||||
Derivatives Designated as Hedging Instruments
|
Balance Sheet Location
1
|
|
December 31,
2018 |
|
|
December 31,
2017 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
43
|
|
|
$
|
45
|
|
Foreign currency contracts
|
Other assets
|
|
114
|
|
|
79
|
|
||
Interest rate contracts
|
Other assets
|
|
88
|
|
|
52
|
|
||
Total assets
|
|
|
$
|
245
|
|
|
$
|
176
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
19
|
|
|
$
|
69
|
|
Foreign currency contracts
|
Other liabilities
|
|
15
|
|
|
9
|
|
||
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
|
|
||
Interest rate contracts
|
Other liabilities
|
|
40
|
|
|
39
|
|
||
Total liabilities
|
|
|
$
|
75
|
|
|
$
|
159
|
|
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 17
for the net presentation of the Company's derivative instruments.
|
2
|
Refer to
Note 17
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,
2018 |
|
|
December 31,
2017 |
|
||
Assets:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
|
$
|
61
|
|
|
$
|
20
|
|
Foreign currency contracts
|
Other assets
|
|
—
|
|
|
27
|
|
||
Commodity contracts
|
Prepaid expenses and other assets
|
|
2
|
|
|
25
|
|
||
Commodity contracts
|
Other assets
|
|
—
|
|
|
1
|
|
||
Other derivative instruments
|
Prepaid expenses and other assets
|
|
7
|
|
|
8
|
|
||
Total assets
|
|
|
$
|
70
|
|
|
$
|
81
|
|
Liabilities:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
|
$
|
99
|
|
|
$
|
69
|
|
Foreign currency contracts
|
Other liabilities
|
|
—
|
|
|
28
|
|
||
Foreign currency contracts
|
Liabilities held for sale — discontinued operations
|
|
2
|
|
|
—
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
|
37
|
|
|
7
|
|
||
Commodity contracts
|
Other liabilities
|
|
8
|
|
|
—
|
|
||
Commodity contracts
|
Liabilities held for sale — discontinued operations
|
|
1
|
|
|
—
|
|
||
Other derivative instruments
|
Accounts payable and accrued expenses
|
|
13
|
|
|
1
|
|
||
Other derivative instruments
|
Other liabilities
|
|
—
|
|
|
1
|
|
||
Total liabilities
|
|
|
$
|
160
|
|
|
$
|
106
|
|
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 17
for the net presentation of the Company's derivative instruments.
|
2
|
Refer to
Note 17
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)
|
|
|
|||
2018
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
9
|
|
|
Net operating revenues
|
|
$
|
136
|
|
|
$
|
1
|
|
|
Foreign currency contracts
|
15
|
|
|
Cost of goods sold
|
|
8
|
|
|
—
|
|
2
|
|||
Foreign currency contracts
|
—
|
|
|
Interest expense
|
|
(9
|
)
|
|
—
|
|
|
|||
Foreign currency contracts
|
23
|
|
|
Other income (loss) — net
|
|
(5
|
)
|
|
(4
|
)
|
|
|||
Foreign currency contracts
|
—
|
|
|
Income (loss) from discontinued operations
|
|
—
|
|
|
(3
|
)
|
|
|||
Interest rate contracts
|
22
|
|
|
Interest expense
|
|
(40
|
)
|
|
(8
|
)
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
—
|
|
|
—
|
|
|
|||
Commodity contracts
|
—
|
|
|
Income (loss) from discontinued operations
|
|
—
|
|
|
(5
|
)
|
|
|||
Total
|
$
|
68
|
|
|
|
|
$
|
90
|
|
|
$
|
(19
|
)
|
|
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 (loss) from discontinued operations
|
|
—
|
|
|
—
|
|
|
|||
Interest rate contracts
|
(22
|
)
|
|
Interest expense
|
|
(37
|
)
|
|
2
|
|
|
|||
Commodity contracts
|
(1
|
)
|
|
Cost of goods sold
|
|
(1
|
)
|
|
—
|
|
|
|||
Commodity contracts
|
(5
|
)
|
|
Income (loss) 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
|
)
|
|
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
|
|
|
2018
|
|
|
||
Interest rate contracts
|
Interest expense
|
$
|
34
|
|
Fixed-rate debt
|
Interest expense
|
(38
|
)
|
|
Net impact to interest expense
|
|
$
|
(4
|
)
|
Foreign currency contracts
|
Other income (loss) — net
|
$
|
(6
|
)
|
Available-for-sale securities
|
Other income (loss) — net
|
6
|
|
|
Net impact to other income (loss) — net
|
|
$
|
—
|
|
Net impact of fair value hedging instruments
|
|
$
|
(4
|
)
|
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
|
|
|
Notional Amount
|
|
Gain (Loss) Recognized in OCI
|
|||||||||||||
|
as of December 31,
|
|
Year Ended December 31,
|
|||||||||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||||
Foreign currency contracts
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
$
|
(7
|
)
|
$
|
(237
|
)
|
Foreign currency denominated debt
|
12,494
|
|
13,147
|
|
|
653
|
|
(1,505
|
)
|
304
|
|
|||||
Total
|
$
|
12,494
|
|
$
|
13,147
|
|
|
$
|
639
|
|
$
|
(1,512
|
)
|
$
|
67
|
|
Derivatives Not Designated
as Hedging Instruments
|
Location of Gain (Loss)
Recognized in Income
|
|
Gain (Loss)
Recognized in Income
|
||||||||||
|
Year Ended December 31,
|
||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||||
Foreign currency contracts
|
Net operating revenues
|
|
$
|
22
|
|
|
$
|
(30
|
)
|
|
$
|
(45
|
)
|
Foreign currency contracts
|
Cost of goods sold
|
|
9
|
|
|
(1
|
)
|
|
4
|
|
|||
Foreign currency contracts
|
Other income (loss) — net
|
|
(264
|
)
|
|
73
|
|
|
(168
|
)
|
|||
Commodity contracts
|
Net operating revenues
|
|
—
|
|
|
16
|
|
|
10
|
|
|||
Commodity contracts
|
Cost of goods sold
|
|
(29
|
)
|
|
15
|
|
|
75
|
|
|||
Commodity contracts
|
Selling, general and administrative expenses
|
|
—
|
|
|
1
|
|
|
6
|
|
|||
Commodity contracts
|
Income (loss) from discontinued operations
|
|
4
|
|
|
—
|
|
|
—
|
|
|||
Interest rate contracts
|
Interest expense
|
|
(1
|
)
|
|
—
|
|
|
(39
|
)
|
|||
Other derivative instruments
|
Selling, general and administrative expenses
|
|
(18
|
)
|
|
46
|
|
|
16
|
|
|||
Other derivative instruments
|
Other income (loss) — net
|
|
(22
|
)
|
|
1
|
|
|
(15
|
)
|
|||
Total
|
|
|
$
|
(299
|
)
|
|
$
|
121
|
|
|
$
|
(156
|
)
|
Year Ended December 31,
1
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net operating revenues
|
$
|
75,462
|
|
|
$
|
73,339
|
|
|
$
|
58,054
|
|
Cost of goods sold
|
44,914
|
|
|
42,867
|
|
|
34,338
|
|
|||
Gross profit
|
$
|
30,548
|
|
|
$
|
30,472
|
|
|
$
|
23,716
|
|
Operating income
|
$
|
7,511
|
|
|
$
|
7,577
|
|
|
$
|
5,652
|
|
Consolidated net income
|
$
|
4,645
|
|
|
$
|
4,545
|
|
|
$
|
2,967
|
|
Less: Net income attributable to noncontrolling interests
|
101
|
|
|
120
|
|
|
78
|
|
|||
Net income attributable to common shareowners
|
$
|
4,544
|
|
|
$
|
4,425
|
|
|
$
|
2,889
|
|
Equity income (loss) — net
|
$
|
1,008
|
|
|
$
|
1,071
|
|
|
$
|
835
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Current assets
|
$
|
23,239
|
|
|
$
|
25,023
|
|
Noncurrent assets
|
66,731
|
|
|
66,578
|
|
||
Total assets
|
$
|
89,970
|
|
|
$
|
91,601
|
|
Current liabilities
|
$
|
18,097
|
|
|
$
|
17,890
|
|
Noncurrent liabilities
|
29,143
|
|
|
29,986
|
|
||
Total liabilities
|
$
|
47,240
|
|
|
$
|
47,876
|
|
Equity attributable to shareowners of investees
|
$
|
41,550
|
|
|
$
|
41,773
|
|
Equity attributable to noncontrolling interests
|
1,180
|
|
|
1,952
|
|
||
Total equity
|
$
|
42,730
|
|
|
$
|
43,725
|
|
Company equity investment
|
$
|
19,407
|
|
|
$
|
20,856
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Land
|
$
|
485
|
|
|
$
|
334
|
|
Buildings and improvements
|
3,838
|
|
|
3,917
|
|
||
Machinery, equipment and vehicle fleet
|
11,922
|
|
|
12,198
|
|
||
Property, plant and equipment — cost
|
16,245
|
|
|
16,449
|
|
||
Less accumulated depreciation
|
8,013
|
|
|
8,246
|
|
||
Property, plant and equipment — net
|
$
|
8,232
|
|
|
$
|
8,203
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Trademarks
|
$
|
6,682
|
|
|
$
|
6,729
|
|
Bottlers' franchise rights
|
51
|
|
|
138
|
|
||
Goodwill
|
10,263
|
|
|
9,401
|
|
||
Other
|
106
|
|
|
106
|
|
||
Indefinite-lived intangible assets
|
$
|
17,102
|
|
|
$
|
16,374
|
|
|
Europe, Middle East & Africa
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Asia Pacific
|
|
|
Bottling
Investments
|
|
|
Total
|
|
||||||
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 charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(390
|
)
|
|
(390
|
)
|
||||||
Divestitures, deconsolidations and other
1,2
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(999
|
)
|
|
(999
|
)
|
||||||
Balance at end of year
|
$
|
703
|
|
|
$
|
150
|
|
|
$
|
8,349
|
|
|
$
|
145
|
|
|
$
|
54
|
|
|
$
|
9,401
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at beginning of year
|
$
|
703
|
|
|
$
|
150
|
|
|
$
|
8,349
|
|
|
$
|
145
|
|
|
$
|
54
|
|
|
$
|
9,401
|
|
Effect of foreign currency translation
|
(58
|
)
|
|
(9
|
)
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|
(73
|
)
|
||||||
Acquisitions
1,3
|
12
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
488
|
|
|
513
|
|
||||||
Adjustments related to the finalization
of purchase accounting
1,4
|
411
|
|
|
27
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
427
|
|
||||||
Divestitures, deconsolidations and other
1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Balance at end of year
|
$
|
1,068
|
|
|
$
|
168
|
|
|
$
|
8,338
|
|
|
$
|
154
|
|
|
$
|
535
|
|
|
$
|
10,263
|
|
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 North America bottling operations being refranchised. Refer to
Note 2
.
|
3
|
The increase in 2018 was primarily due to the acquisition of the Philippine bottling operations. Refer to
Note 2
.
|
4
|
The increase in 2018 was primarily due to the allocation of goodwill from CCBA to other reporting units expected to benefit from the acquisition of CCBA. Refer to
Note 2
.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net
Carrying
Value
|
|
|
Gross Carrying
Value
|
|
Accumulated Amortization
|
|
Net
Carrying
Value
|
|
||||||
Customer relationships
|
$
|
185
|
|
$
|
(151
|
)
|
$
|
34
|
|
|
$
|
205
|
|
$
|
(143
|
)
|
$
|
62
|
|
Bottlers' franchise rights
|
30
|
|
(18
|
)
|
12
|
|
|
213
|
|
(152
|
)
|
61
|
|
||||||
Trademarks
|
186
|
|
(91
|
)
|
95
|
|
|
182
|
|
(73
|
)
|
109
|
|
||||||
Other
|
88
|
|
(61
|
)
|
27
|
|
|
94
|
|
(64
|
)
|
30
|
|
||||||
Total
|
$
|
489
|
|
$
|
(321
|
)
|
$
|
168
|
|
|
$
|
694
|
|
$
|
(432
|
)
|
$
|
262
|
|
|
|
Amortization
Expense
|
|
|
2019
|
|
$
|
44
|
|
2020
|
|
34
|
|
|
2021
|
|
26
|
|
|
2022
|
|
25
|
|
|
2023
|
|
25
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Accrued marketing
|
$
|
1,787
|
|
|
$
|
2,108
|
|
Trade accounts payable
|
2,498
|
|
|
2,288
|
|
||
Other accrued expenses
|
3,352
|
|
1
|
3,071
|
|
||
Accrued compensation
|
894
|
|
|
854
|
|
||
Sales, payroll and other taxes
|
315
|
|
|
347
|
|
||
Container deposits
|
86
|
|
|
80
|
|
||
Accounts payable and accrued expenses
|
$
|
8,932
|
|
|
$
|
8,748
|
|
1
|
The increase in other accrued expenses is primarily due to incremental estimated variable consideration due to third-party customers. Refer to
Note 1
and
Note 3
for additional information on our adoption of ASC 606 that became effective on
January 1, 2018
.
|
•
|
$26 million
total principal amount of debentures due
January 29, 2018
, at a fixed interest rate of
9.66 percent
;
|
•
|
$750 million
total principal amount of notes due
March 14, 2018
, at a fixed interest rate of
1.65 percent
;
|
•
|
$1,250 million
total principal amount of notes due
April 1, 2018
, at a fixed interest rate of
1.15 percent
; and
|
•
|
$1,250 million
total principal amount of notes due
November 1, 2018
, at a fixed interest rate of
1.65 percent
.
|
•
|
$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
;
|
•
|
€500 million
total principal amount of notes due September 2, 2036, at a fixed interest rate of
1.10 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
; and
|
•
|
$1,000 million
total principal amount of notes due September 1, 2026, at a fixed interest rate of
2.25 percent
.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
|
Amount
|
|
|
Average
Rate
1
|
|
|
Amount
|
|
|
Average
Rate
1
|
|
||
U.S. dollar notes due 2019–2093
|
$
|
13,619
|
|
|
2.6
|
%
|
|
$
|
16,854
|
|
|
2.3
|
%
|
U.S. dollar debentures due 2020–2098
|
1,390
|
|
|
5.2
|
|
|
1,559
|
|
|
5.5
|
|
||
U.S. dollar zero coupon notes due 2020
2
|
163
|
|
|
8.4
|
|
|
158
|
|
|
8.4
|
|
||
Australian dollar notes due 2020–2024
|
723
|
|
|
2.2
|
|
|
760
|
|
|
2.1
|
|
||
Euro notes due 2019–2036
|
12,994
|
|
|
0.6
|
|
|
13,663
|
|
|
0.7
|
|
||
Swiss franc notes due 2022–2028
|
1,128
|
|
|
3.6
|
|
|
1,148
|
|
|
3.0
|
|
||
Other, due through 2098
3
|
282
|
|
|
3.4
|
|
|
325
|
|
|
3.4
|
|
||
Fair value adjustments
4
|
62
|
|
|
N/A
|
|
|
13
|
|
|
N/A
|
|
||
Total
5,6
|
30,361
|
|
|
1.9
|
%
|
|
34,480
|
|
|
1.8
|
%
|
||
Less current portion
|
4,997
|
|
|
|
|
|
3,298
|
|
|
|
|
||
Long-term debt
|
$
|
25,364
|
|
|
|
|
|
$
|
31,182
|
|
|
|
|
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 6
for a more detailed discussion on interest rate management.
|
2
|
Amount is shown net of unamortized discounts of $
8 million
and $
13 million
as of
December 31, 2018
and
2017
, respectively.
|
3
|
As of
December 31, 2018
, the amount shown includes $
136 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 6
for additional information about our fair value hedging strategy.
|
5
|
As of
December 31, 2018
and
2017
, the fair value of our long-term debt, including the current portion, was $
30,438 million
and $
35,169 million
, respectively.
|
6
|
The above notes and debentures include various restrictions, none of which is presently significant to our Company.
|
|
Maturities of
Long-Term Debt
|
|
|
2019
|
$
|
4,997
|
|
2020
|
4,265
|
|
|
2021
|
2,929
|
|
|
2022
|
2,414
|
|
|
2023
|
4,099
|
|
|
Operating Lease Payments
|
|
|
2019
|
$
|
144
|
|
2020
|
84
|
|
|
2021
|
70
|
|
|
2022
|
60
|
|
|
2023
|
42
|
|
|
Thereafter
|
100
|
|
|
Total minimum operating lease payments
1
|
$
|
500
|
|
1
|
Income associated with sublease arrangements is not significant.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Fair value of stock options at grant date
|
$
|
4.97
|
|
|
$
|
3.98
|
|
|
$
|
4.17
|
|
Dividend yield
1
|
3.5
|
%
|
|
3.6
|
%
|
|
3.2
|
%
|
|||
Expected volatility
2
|
15.5
|
%
|
|
15.5
|
%
|
|
16.0
|
%
|
|||
Risk-free interest rate
3
|
2.8
|
%
|
|
2.2
|
%
|
|
1.5
|
%
|
|||
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
0.1 million
stock option replacement awards in connection with our acquisition of Old CCE in 2010. These options had a weighted-average exercise price of $
17.35
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 2015–2017 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 and growth share units as of
December 31, 2018
at the threshold award and maximum award levels were
2.4 million
and
15.3 million
, respectively.
|
|
Restricted
Stock Units (In thousands) |
|
|
Weighted-
Average Grant Date Fair Value |
|
|
Nonvested on January 1, 2018
|
6,748
|
|
|
$
|
32.35
|
|
Conversions from performance share units
|
2,692
|
|
|
36.24
|
|
|
Vested and released
|
(6,747
|
)
|
|
32.34
|
|
|
Canceled/forfeited
|
(102
|
)
|
|
36.18
|
|
|
Nonvested on December 31, 2018
|
2,591
|
|
|
$
|
36.24
|
|
|
Restricted Stock and Restricted Stock Units (In thousands)
|
|
|
Weighted-Average
Grant Date Fair Value |
|
|
Nonvested on January 1, 2018
|
3,535
|
|
|
$
|
40.99
|
|
Granted
|
1,457
|
|
|
40.12
|
|
|
Vested and released
|
(1,015
|
)
|
|
41.80
|
|
|
Forfeited/expired
|
(555
|
)
|
|
41.32
|
|
|
Nonvested on December 31, 2018
|
3,422
|
|
|
$
|
40.31
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Benefit obligation at beginning of year
1
|
$
|
9,455
|
|
|
$
|
9,428
|
|
|
$
|
782
|
|
|
$
|
962
|
|
Service cost
|
124
|
|
|
197
|
|
|
11
|
|
|
17
|
|
||||
Interest cost
|
294
|
|
|
306
|
|
|
23
|
|
|
29
|
|
||||
Foreign currency exchange rate changes
|
(110
|
)
|
|
150
|
|
|
(5
|
)
|
|
4
|
|
||||
Amendments
|
1
|
|
|
1
|
|
|
(8
|
)
|
|
(21
|
)
|
||||
Net actuarial loss (gain)
|
(469
|
)
|
|
420
|
|
|
(33
|
)
|
|
(28
|
)
|
||||
Benefits paid
2
|
(356
|
)
|
|
(341
|
)
|
|
(70
|
)
|
|
(71
|
)
|
||||
Business combinations
3
|
60
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Divestitures
|
(11
|
)
|
|
(7
|
)
|
|
—
|
|
|
(66
|
)
|
||||
Settlements
4
|
(932
|
)
|
|
(832
|
)
|
|
—
|
|
|
—
|
|
||||
Curtailments
4
|
(63
|
)
|
|
(10
|
)
|
|
—
|
|
|
(48
|
)
|
||||
Special termination benefits
4
|
7
|
|
|
106
|
|
|
—
|
|
|
—
|
|
||||
Other
|
4
|
|
|
37
|
|
|
7
|
|
|
4
|
|
||||
Benefit obligation at end of year
1
|
$
|
8,004
|
|
|
$
|
9,455
|
|
|
$
|
708
|
|
|
$
|
782
|
|
Fair value of plan assets at beginning of year
|
$
|
8,843
|
|
|
$
|
8,371
|
|
|
$
|
288
|
|
|
$
|
255
|
|
Actual return on plan assets
|
(271
|
)
|
|
1,139
|
|
|
(5
|
)
|
|
31
|
|
||||
Employer contributions
|
107
|
|
|
181
|
|
|
—
|
|
|
—
|
|
||||
Foreign currency exchange rate changes
|
(128
|
)
|
|
196
|
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(285
|
)
|
|
(285
|
)
|
|
(3
|
)
|
|
(3
|
)
|
||||
Business combinations
3
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Divestitures
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Settlements
4
|
(892
|
)
|
|
(794
|
)
|
|
—
|
|
|
—
|
|
||||
Other
|
6
|
|
|
35
|
|
|
9
|
|
|
5
|
|
||||
Fair value of plan assets at end of year
|
$
|
7,409
|
|
|
$
|
8,843
|
|
|
$
|
289
|
|
|
$
|
288
|
|
Net liability recognized
|
$
|
(595
|
)
|
|
$
|
(612
|
)
|
|
$
|
(419
|
)
|
|
$
|
(494
|
)
|
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
$7,856 million
and
$9,175 million
as of
December 31, 2018
and
2017
, respectively.
|
2
|
Benefits paid to pension plan participants during
2018
and
2017
included
$71 million
and
$56 million
, respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during
2018
and
2017
included
$67 million
and
$68 million
, respectively, that were paid from Company assets.
|
3
|
Business combinations primarily related to the acquisition of a controlling interest in the Philippine bottling operations. Refer to
Note 2
.
|
4
|
Settlements, curtailments and special termination benefits were primarily related to productivity, integration and restructuring initiatives and the refranchising of our North America bottling operations. Refer to
Note 2
and
Note 19
.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Other assets
|
$
|
803
|
|
|
$
|
921
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payable and accrued expenses
|
(70
|
)
|
|
(72
|
)
|
|
(21
|
)
|
|
(21
|
)
|
||||
Other liabilities
|
(1,328
|
)
|
|
(1,461
|
)
|
|
(398
|
)
|
|
(473
|
)
|
||||
Net liability recognized
|
$
|
(595
|
)
|
|
$
|
(612
|
)
|
|
$
|
(419
|
)
|
|
$
|
(494
|
)
|
December 31,
|
2018
|
|
|
2017
|
|
||
Projected benefit obligations
|
$
|
6,561
|
|
|
$
|
7,833
|
|
Fair value of plan assets
|
5,163
|
|
|
6,330
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Accumulated benefit obligations
|
$
|
6,450
|
|
|
$
|
7,614
|
|
Fair value of plan assets
|
5,157
|
|
|
6,305
|
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
||||||||||||
December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Cash and cash equivalents
|
$
|
310
|
|
|
$
|
454
|
|
|
$
|
153
|
|
|
$
|
237
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
U.S.-based companies
|
1,116
|
|
|
1,427
|
|
|
644
|
|
|
670
|
|
||||
International-based companies
|
659
|
|
|
911
|
|
|
462
|
|
|
554
|
|
||||
Fixed-income securities:
|
|
|
|
|
|
|
|
||||||||
Government bonds
|
192
|
|
|
183
|
|
|
271
|
|
|
191
|
|
||||
Corporate bonds and debt securities
|
745
|
|
|
785
|
|
|
90
|
|
|
42
|
|
||||
Mutual, pooled and commingled funds
1
|
238
|
|
|
215
|
|
|
637
|
|
|
766
|
|
||||
Hedge funds/limited partnerships
|
785
|
|
|
939
|
|
|
43
|
|
|
44
|
|
||||
Real estate
|
385
|
|
|
596
|
|
|
6
|
|
|
2
|
|
||||
Other
|
412
|
|
|
518
|
|
|
261
|
|
|
309
|
|
||||
Total pension plan assets
2
|
$
|
4,842
|
|
|
$
|
6,028
|
|
|
$
|
2,567
|
|
|
$
|
2,815
|
|
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 plan assets are included in
Note 17
. 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 plan 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,
|
2018
|
|
|
2017
|
|
||
Cash and cash equivalents
|
$
|
73
|
|
|
$
|
78
|
|
Equity securities:
|
|
|
|
||||
U.S.-based companies
|
93
|
|
|
96
|
|
||
International-based companies
|
7
|
|
|
8
|
|
||
Fixed-income securities:
|
|
|
|
||||
Government bonds
|
2
|
|
|
2
|
|
||
Corporate bonds and debt securities
|
16
|
|
|
7
|
|
||
Mutual, pooled and commingled funds
|
82
|
|
|
80
|
|
||
Hedge funds/limited partnerships
|
8
|
|
|
8
|
|
||
Real estate
|
4
|
|
|
5
|
|
||
Other
|
4
|
|
|
4
|
|
||
Total other postretirement benefit plan assets
1
|
$
|
289
|
|
|
$
|
288
|
|
1
|
Fair value disclosures related to our other postretirement benefit plan assets are included in
Note 17
. 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,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
||||||
Service cost
|
$
|
124
|
|
|
$
|
197
|
|
|
$
|
239
|
|
|
$
|
11
|
|
|
$
|
17
|
|
|
$
|
22
|
|
Interest cost
|
294
|
|
|
306
|
|
|
319
|
|
|
23
|
|
|
29
|
|
|
31
|
|
||||||
Expected return on plan assets
1
|
(650
|
)
|
|
(650
|
)
|
|
(653
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
(11
|
)
|
||||||
Amortization of prior service credit
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
(14
|
)
|
|
(18
|
)
|
|
(19
|
)
|
||||||
Amortization of net actuarial loss
2
|
128
|
|
|
175
|
|
|
183
|
|
|
3
|
|
|
8
|
|
|
7
|
|
||||||
Net periodic benefit cost (income)
|
(107
|
)
|
|
28
|
|
|
86
|
|
|
10
|
|
|
24
|
|
|
30
|
|
||||||
Settlement charges
3
|
240
|
|
|
228
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailment charges (credits)
3
|
5
|
|
|
4
|
|
|
—
|
|
|
(4
|
)
|
|
(79
|
)
|
|
—
|
|
||||||
Special termination benefits
3
|
7
|
|
|
106
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Other
|
—
|
|
|
1
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
23
|
|
||||||
Total cost (income) recognized in
consolidated statements of income
|
$
|
145
|
|
|
$
|
367
|
|
|
$
|
238
|
|
|
$
|
5
|
|
|
$
|
(55
|
)
|
|
$
|
54
|
|
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
|
Settlements, curtailments and special termination benefits were primarily related to productivity, integration and restructuring initiatives and the refranchising of our North America bottling operations. Refer to
Note 2
and
Note 19
.
|
|
Pension Benefits
|
|
Other Benefits
|
|
||||||||||||
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
||||
Balance in AOCI at beginning of year
|
$
|
(2,493
|
)
|
|
$
|
(2,932
|
)
|
|
$
|
(26
|
)
|
|
$
|
(48
|
)
|
|
Recognized prior service cost (credit)
|
1
|
|
1
|
4
|
|
|
(18
|
)
|
4
|
(54
|
)
|
5
|
||||
Recognized net actuarial loss (gain)
|
369
|
|
2
|
403
|
|
3
|
3
|
|
|
(36
|
)
|
5
|
||||
Prior service credit (cost) occurring during the year
|
(1
|
)
|
|
(1
|
)
|
|
8
|
|
|
21
|
|
|
||||
Net actuarial (loss) gain occurring during the year
|
(389
|
)
|
1
|
75
|
|
|
15
|
|
|
92
|
|
5
|
||||
Impact of divestitures
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Foreign currency translation gain (loss)
|
27
|
|
|
(42
|
)
|
|
3
|
|
|
(1
|
)
|
|
||||
Balance in AOCI at end of year
|
$
|
(2,482
|
)
|
|
$
|
(2,493
|
)
|
|
$
|
(15
|
)
|
|
$
|
(26
|
)
|
|
1
|
Includes
$4 million
of recognized prior service cost and
$63 million
of actuarial gains occurring during the year due to the impact of curtailments.
|
2
|
Includes
$240 million
of recognized net actuarial losses due to the impact of settlements.
|
3
|
Includes
$228 million
of recognized net actuarial losses due to the impact of settlements.
|
4
|
Includes
$4 million
of recognized prior service credit due to the impact of curtailments.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Prior service credit (cost)
|
$
|
(12
|
)
|
|
$
|
(10
|
)
|
|
$
|
29
|
|
|
$
|
36
|
|
Net actuarial loss
|
(2,470
|
)
|
|
(2,483
|
)
|
|
(44
|
)
|
|
(62
|
)
|
||||
Balance in AOCI at end of year
|
$
|
(2,482
|
)
|
|
$
|
(2,493
|
)
|
|
$
|
(15
|
)
|
|
$
|
(26
|
)
|
|
Pension Benefits
|
|
Other Benefits
|
||||
Amortization of prior service credit
|
$
|
(4
|
)
|
|
$
|
(2
|
)
|
Amortization of net actuarial loss
|
152
|
|
|
2
|
|
||
Total
|
$
|
148
|
|
|
$
|
—
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
December 31,
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Discount rate
|
4.00
|
%
|
|
3.50
|
%
|
|
4.25
|
%
|
|
3.50
|
%
|
Rate of increase in compensation levels
|
3.75
|
%
|
|
3.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
Discount rate
|
3.50
|
%
|
|
4.00
|
%
|
|
4.25
|
%
|
|
3.50
|
%
|
|
4.00
|
%
|
|
4.25
|
%
|
Rate of increase in compensation levels
|
3.50
|
%
|
|
3.75
|
%
|
|
3.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
8.00
|
%
|
|
8.00
|
%
|
|
8.25
|
%
|
|
4.50
|
%
|
|
4.75
|
%
|
|
4.75
|
%
|
December 31,
|
2018
|
|
|
2017
|
|
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
|
2023
|
|
|
2022
|
|
Year Ended December 31,
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024–2028
|
|
||||||
Pension benefit payments
|
$
|
439
|
|
|
$
|
448
|
|
|
$
|
460
|
|
|
$
|
468
|
|
|
$
|
480
|
|
|
$
|
2,517
|
|
Other benefit payments
1
|
62
|
|
|
61
|
|
|
59
|
|
|
57
|
|
|
55
|
|
|
250
|
|
||||||
Total estimated benefit payments
|
$
|
501
|
|
|
$
|
509
|
|
|
$
|
519
|
|
|
$
|
525
|
|
|
$
|
535
|
|
|
$
|
2,767
|
|
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
$3 million
for the period 2019–2023 and
$2 million
for the period 2024–2028.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|||
United States
|
$
|
888
|
|
1
|
$
|
(690
|
)
|
1
|
$
|
113
|
|
1
|
International
|
7,462
|
|
1
|
7,432
|
|
|
8,023
|
|
|
|||
Total
|
$
|
8,350
|
|
|
$
|
6,742
|
|
|
$
|
8,136
|
|
|
|
United States
|
|
|
State and Local
|
|
|
International
|
|
|
Total
|
|
||||
2018
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
591
|
|
1
|
$
|
145
|
|
|
$
|
1,337
|
|
|
$
|
2,073
|
|
Deferred
|
(386
|
)
|
1,3
|
(81
|
)
|
1,3
|
17
|
|
1,3
|
(450
|
)
|
||||
2017
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
5,438
|
|
2
|
$
|
121
|
|
|
$
|
1,257
|
|
|
$
|
6,816
|
|
Deferred
|
(1,783
|
)
|
2,3
|
14
|
|
|
513
|
|
2
|
(1,256
|
)
|
||||
2016
|
|
|
|
|
|
|
|
||||||||
Current
|
$
|
1,147
|
|
|
$
|
113
|
|
|
$
|
1,182
|
|
|
$
|
2,442
|
|
Deferred
|
(838
|
)
|
3
|
(91
|
)
|
|
73
|
|
|
(856
|
)
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Statutory U.S. federal tax rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
State and local income taxes — net of federal benefit
|
1.5
|
|
|
1.2
|
|
|
1.2
|
|
|
Earnings in jurisdictions taxed at rates different from the statutory U.S.
federal tax rate
|
1.2
|
|
1,2
|
(9.7
|
)
|
|
(17.5
|
)
|
7
|
Equity income or loss
|
(2.4
|
)
|
|
(3.4
|
)
|
|
(3.0
|
)
|
|
Tax Reform Act
|
0.1
|
|
3
|
53.5
|
|
4
|
—
|
|
|
Excess tax benefits on stock-based compensation
|
(1.2
|
)
|
|
(2.0
|
)
|
|
—
|
|
|
Other — net
|
(0.8
|
)
|
|
7.9
|
|
5,6
|
3.8
|
|
8
|
Effective tax rate
|
19.4
|
%
|
|
82.5
|
%
|
|
19.5
|
%
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|||
Beginning balance of unrecognized tax benefits
|
$
|
331
|
|
|
$
|
302
|
|
|
$
|
168
|
|
|
Increase related to prior period tax positions
|
11
|
|
|
18
|
|
|
163
|
|
1
|
|||
Decrease related to prior period tax positions
|
(2
|
)
|
|
(13
|
)
|
|
—
|
|
|
|||
Increase related to current period tax positions
|
17
|
|
|
13
|
|
|
17
|
|
|
|||
Decrease related to settlements with taxing authorities
|
(4
|
)
|
|
—
|
|
|
(40
|
)
|
1
|
|||
Increase (decrease) due to effect of foreign currency exchange rate changes
|
(17
|
)
|
|
11
|
|
|
(6
|
)
|
|
|||
Ending balance of unrecognized tax benefits
|
$
|
336
|
|
|
$
|
331
|
|
|
$
|
302
|
|
|
1
|
The net increase was 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,
|
2018
|
|
|
2017
|
|
||
Deferred tax assets:
|
|
|
|
||||
Property, plant and equipment
|
$
|
64
|
|
|
$
|
99
|
|
Trademarks and other intangible assets
|
2,540
|
|
2
|
98
|
|
||
Equity method investments (including foreign currency translation adjustment)
|
315
|
|
|
300
|
|
||
Derivative financial instruments
|
322
|
|
|
387
|
|
||
Other liabilities
|
791
|
|
|
861
|
|
||
Benefit plans
|
881
|
|
|
977
|
|
||
Net operating/capital loss carryforwards
|
318
|
|
|
520
|
|
||
Other
|
221
|
|
|
163
|
|
||
Gross deferred tax assets
|
5,452
|
|
|
3,405
|
|
||
Valuation allowances
|
(399
|
)
|
|
(501
|
)
|
||
Total deferred tax assets
1
|
$
|
5,053
|
|
|
$
|
2,904
|
|
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
$
|
(724
|
)
|
|
$
|
(819
|
)
|
Trademarks and other intangible assets
|
(951
|
)
|
|
(978
|
)
|
||
Equity method investments (including foreign currency translation adjustment)
|
(1,707
|
)
|
|
(1,835
|
)
|
||
Derivative financial instruments
|
(162
|
)
|
|
(436
|
)
|
||
Other liabilities
|
(67
|
)
|
|
(50
|
)
|
||
Benefit plans
|
(255
|
)
|
|
(289
|
)
|
||
Other
|
(453
|
)
|
|
(688
|
)
|
||
Total deferred tax liabilities
|
$
|
(4,319
|
)
|
|
$
|
(5,095
|
)
|
Net deferred tax assets (liabilities)
|
$
|
734
|
|
|
$
|
(2,191
|
)
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Balance at beginning of year
|
$
|
501
|
|
|
$
|
530
|
|
|
$
|
477
|
|
Additions
|
81
|
|
|
184
|
|
|
68
|
|
|||
Decrease due to reclassification to assets held for sale
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||
Deductions
|
(183
|
)
|
|
(213
|
)
|
|
(6
|
)
|
|||
Balance at end of year
|
$
|
399
|
|
|
$
|
501
|
|
|
$
|
530
|
|
December 31,
|
2018
|
|
|
2017
|
|
||
Foreign currency translation adjustments
|
$
|
(11,045
|
)
|
|
$
|
(8,957
|
)
|
Accumulated derivative net gains (losses)
|
(126
|
)
|
|
(119
|
)
|
||
Unrealized net gains (losses) on available-for-sale securities
1
|
50
|
|
|
493
|
|
||
Adjustments to pension and other benefit liabilities
|
(1,693
|
)
|
|
(1,722
|
)
|
||
Accumulated other comprehensive income (loss)
|
$
|
(12,814
|
)
|
|
$
|
(10,305
|
)
|
|
Year Ended December 31, 2018
|
||||||||
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||
Consolidated net income
|
$
|
6,434
|
|
$
|
42
|
|
$
|
6,476
|
|
Other comprehensive income:
|
|
|
|
||||||
Net foreign currency translation adjustments
|
(2,088
|
)
|
53
|
|
(2,035
|
)
|
|||
Net gains (losses) on derivatives
1
|
(7
|
)
|
—
|
|
(7
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt
securities
2
|
(34
|
)
|
—
|
|
(34
|
)
|
|||
Net change in pension and other benefit liabilities
3
|
29
|
|
—
|
|
29
|
|
|||
Total comprehensive income
|
$
|
4,334
|
|
$
|
95
|
|
$
|
4,429
|
|
1
|
Refer to
Note 6
for additional information related to the net gains or losses on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 4
for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
3
|
Refer to
Note 14
for additional information related to the Company's pension and other postretirement benefit liabilities.
|
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
2018
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the year
|
$
|
(1,728
|
)
|
|
$
|
59
|
|
|
$
|
(1,669
|
)
|
Reclassification adjustments recognized in net income
|
398
|
|
|
—
|
|
|
398
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(1,296
|
)
|
|
—
|
|
|
(1,296
|
)
|
|||
Gains (losses) on net investment hedges arising during the year
1
|
639
|
|
|
(160
|
)
|
|
479
|
|
|||
Net foreign currency translation adjustments
|
$
|
(1,987
|
)
|
|
$
|
(101
|
)
|
|
$
|
(2,088
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the year
|
59
|
|
|
(16
|
)
|
|
43
|
|
|||
Reclassification adjustments recognized in net income
|
(68
|
)
|
|
18
|
|
|
(50
|
)
|
|||
Net gains (losses) on derivatives
1
|
$
|
(9
|
)
|
|
$
|
2
|
|
|
$
|
(7
|
)
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the year
|
(50
|
)
|
|
11
|
|
|
(39
|
)
|
|||
Reclassification adjustments recognized in net income
|
5
|
|
|
—
|
|
|
5
|
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities
2
|
$
|
(45
|
)
|
|
$
|
11
|
|
|
$
|
(34
|
)
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the year
|
(299
|
)
|
|
75
|
|
|
(224
|
)
|
|||
Reclassification adjustments recognized in net income
|
341
|
|
|
(88
|
)
|
|
253
|
|
|||
Net change in pension and other benefit liabilities
3
|
$
|
42
|
|
|
$
|
(13
|
)
|
|
$
|
29
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$
|
(1,999
|
)
|
|
$
|
(101
|
)
|
|
$
|
(2,100
|
)
|
1
|
Refer to
Note 6
for additional information related to the net gains or losses on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 4
for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
3
|
Refer to
Note 14
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
|
(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 gains (losses) 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 gains (losses) on available-for-sale securities
2
|
$
|
282
|
|
|
$
|
(94
|
)
|
|
$
|
188
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities 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 6
for additional information related to the net gains or losses on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 4
for additional information related to the net unrealized gains or losses on available-for-sale securities.
|
3
|
Refer to
Note 14
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 gains (losses) 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 gains (losses) on available-for-sale securities
2
|
$
|
19
|
|
|
$
|
(2
|
)
|
|
$
|
17
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities 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 6
for additional information related to the net gains or losses on derivative instruments designated and qualifying as cash flow hedging instruments.
|
2
|
Refer to
Note 4
for additional information related to the net unrealized gains or losses on available-for-sale securities.
|
3
|
Refer to
Note 14
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
1,2
|
Other income (loss) — net
|
$
|
398
|
|
|
Income from continuing operations before income taxes
|
$
|
398
|
|
|
Income taxes from continuing operations
|
—
|
|
|
|
Consolidated net income
|
$
|
398
|
|
Derivatives:
|
|
|
||
Foreign currency contracts
|
Net operating revenues
|
$
|
(137
|
)
|
Foreign currency contracts
|
Cost of goods sold
|
(8
|
)
|
|
Foreign currency contracts
|
Other income (loss) — net
|
9
|
|
|
Divestitures, deconsolidations and other
|
Other income (loss) — net
|
3
|
|
|
Foreign currency and interest rate contracts
|
Interest expense
|
57
|
|
|
|
Income from continuing operations before income taxes
|
$
|
(76
|
)
|
|
Income taxes from continuing operations
|
20
|
|
|
|
Net income from continuing operations
|
$
|
(56
|
)
|
Foreign currency and commodity contracts
|
Income from discontinued operations (net of income taxes)
|
$
|
6
|
|
|
Consolidated net income
|
$
|
(50
|
)
|
Available-for-sale securities:
|
|
|
||
Sale of securities
|
Other income (loss) — net
|
$
|
5
|
|
|
Income from continuing operations before income taxes
|
$
|
5
|
|
|
Income taxes from continuing operations
|
—
|
|
|
|
Consolidated net income
|
$
|
5
|
|
Pension and other benefit liabilities:
|
|
|
||
Settlement charges
3
|
Other income (loss) — net
|
$
|
240
|
|
Curtailment charges
3
|
Other income (loss) — net
|
1
|
|
|
Recognized net actuarial loss
|
Other income (loss) — net
|
131
|
|
|
Recognized prior service cost (credit)
|
Other income (loss) — net
|
(17
|
)
|
|
Divestitures, deconsolidations and other
2
|
Other income (loss) — net
|
(14
|
)
|
|
|
Income from continuing operations before income taxes
|
$
|
341
|
|
|
Income taxes from continuing operations
|
(88
|
)
|
|
|
Consolidated net income
|
$
|
253
|
|
1
|
Primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations, and the deconsolidation of our Canadian bottling operations.
|
2
|
Primarily related to our previously held equity method investment in the Philippine bottling operations and the refranchising of our Latin American bottling operations.
|
3
|
The settlement and curtailment charges were primarily related to productivity, restructuring and integration initiatives and the refranchising of our North America bottling operations. Refer to
Note 14
and
Note 19
.
|
•
|
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, 2018
|
|
||||||||||||||||||||||
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Other
|
|
3
|
Netting
Adjustment
|
|
4
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities with readily determinable values
1
|
$
|
1,681
|
|
|
$
|
186
|
|
|
$
|
6
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
1,934
|
|
|
Debt securities
1
|
—
|
|
|
5,018
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
5,037
|
|
|
||||||
Derivatives
2
|
2
|
|
|
313
|
|
|
—
|
|
|
—
|
|
|
(261
|
)
|
5
|
54
|
|
7
|
||||||
Total assets
|
$
|
1,683
|
|
|
$
|
5,517
|
|
|
$
|
25
|
|
|
$
|
61
|
|
|
$
|
(261
|
)
|
|
$
|
7,025
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives
2
|
$
|
(14
|
)
|
|
$
|
(221
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
182
|
|
6
|
$
|
(53
|
)
|
7
|
Total liabilities
|
$
|
(14
|
)
|
|
$
|
(221
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
182
|
|
|
$
|
(53
|
)
|
|
1
|
Refer to
Note 4
for additional information related to the composition of our equity securities with readily determinable values and debt securities.
|
2
|
Refer to
Note 6
for additional information related to the composition of our derivative portfolio.
|
3
|
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 4
.
|
4
|
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 6
.
|
5
|
The Company is obligated to return
$96 million
in cash collateral it has netted against its derivative position.
|
6
|
The Company has the right to reclaim
$4 million
in cash collateral it has netted against its derivative position.
|
7
|
The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows:
$54 million
in the line item other assets;
$3 million
in the line item liabilities held for sale — discontinued operations and
$50 million
in the line item other liabilities. Refer to
Note 6
for additional information related to the composition of our derivative portfolio.
|
|
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 4
for additional information related to the composition of our trading securities and available-for-sale securities.
|
2
|
Refer to
Note 6
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 4
.
|
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 6
.
|
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 6
for additional information related to the composition of our derivative portfolio.
|
|
Gains (Losses)
|
|
||||||
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
||
Other-than-temporary impairment charges
|
$
|
(591
|
)
|
1
|
$
|
(50
|
)
|
5
|
Assets held for sale
— discontinued operations
|
(554
|
)
|
2
|
—
|
|
|
||
Other long-lived assets
|
(312
|
)
|
3
|
(329
|
)
|
6
|
||
Intangible assets
|
(138
|
)
|
3
|
(442
|
)
|
7
|
||
Assets held for sale
|
—
|
|
|
(1,819
|
)
|
8
|
||
Investment in formerly unconsolidated subsidiary
|
(32
|
)
|
4
|
150
|
|
9
|
||
Valuation of shares in equity method investee
|
—
|
|
|
25
|
|
10
|
||
Total
|
$
|
(1,627
|
)
|
|
$
|
(2,465
|
)
|
|
1
|
The Company recognized other-than-temporary impairment charges of
$334 million
related to certain equity method investees in the Middle East. These impairments were primarily driven by revised projections of future operating results largely related to instability in the region, which include recent sanctions imposed locally. The Company also recognized an other-than-temporary impairment charge of
$205 million
related to an equity method investee in Indonesia. This impairment was primarily driven by revised projections of future operating results reflecting unfavorable macroeconomic conditions and foreign currency exchange rate fluctuations. Additionally, the Company recognized an other-than-temporary impairment charge of
$52 million
related to one of our equity method investees in Latin America. This impairment was primarily driven by revised projections of future operating results. The fair value of each of these investments was derived using discounted cash flow analyses based on Level 3 inputs.
|
2
|
The Company recorded impairment charges of
$554 million
related to assets held by CCBA. These charges were incurred primarily as a result of management's view of the proceeds that are expected to be received based on revised projections of future operating results and foreign currency exchange rate fluctuations. The fair value of these assets was derived using discounted cash flow analyses based on Level 3 inputs. We recorded these impairment charges in the line item income (loss) from discontinued operations in our consolidated statements of income.
|
3
|
The Company recognized charges of
$312 million
related to CCR's property, plant and equipment and
$138 million
related to CCR's intangible assets. These charges were a result of management's revised estimate of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. These charges were determined by comparing the fair value of the reporting unit, based on Level 3 inputs, to its carrying value. Refer to
Note 18
.
|
4
|
The Company recognized a loss of
$32 million
, which included the remeasurement of our previously held equity interest in the Philippine bottling operations to fair value and the reversal of the related cumulative translation adjustments. The fair value of our previously held equity investment was determined using a discounted cash flow model based on Level 3 inputs.
|
5
|
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.
|
6
|
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.
|
7
|
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.
|
8
|
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
.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other
1
|
|
|
Total
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other
1
|
|
|
Total
|
|
||||||||||
Cash and cash equivalents
|
$
|
441
|
|
$
|
22
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
463
|
|
|
$
|
626
|
|
$
|
65
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
691
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
U.S.-based companies
|
1,728
|
|
15
|
|
17
|
|
|
—
|
|
|
1,760
|
|
|
2,080
|
|
3
|
|
14
|
|
|
—
|
|
|
2,097
|
|
||||||||||
International-based companies
|
1,098
|
|
23
|
|
—
|
|
|
—
|
|
|
1,121
|
|
|
1,465
|
|
—
|
|
—
|
|
|
—
|
|
|
1,465
|
|
||||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Government bonds
|
—
|
|
463
|
|
—
|
|
|
—
|
|
|
463
|
|
|
—
|
|
374
|
|
—
|
|
|
—
|
|
|
374
|
|
||||||||||
Corporate bonds and debt
securities
|
—
|
|
819
|
|
16
|
|
|
—
|
|
|
835
|
|
|
—
|
|
803
|
|
24
|
|
|
—
|
|
|
827
|
|
||||||||||
Mutual, pooled and commingled
funds
|
46
|
|
130
|
|
—
|
|
|
699
|
|
3
|
875
|
|
|
239
|
|
42
|
|
—
|
|
|
700
|
|
3
|
981
|
|
||||||||||
Hedge funds/limited partnerships
|
—
|
|
—
|
|
—
|
|
|
828
|
|
4
|
828
|
|
|
—
|
|
—
|
|
—
|
|
|
983
|
|
4
|
983
|
|
||||||||||
Real estate
|
—
|
|
—
|
|
—
|
|
|
391
|
|
5
|
391
|
|
|
—
|
|
—
|
|
2
|
|
|
596
|
|
5
|
598
|
|
||||||||||
Other
|
—
|
|
—
|
|
270
|
|
2
|
403
|
|
6
|
673
|
|
|
—
|
|
—
|
|
263
|
|
2
|
564
|
|
6
|
827
|
|
||||||||||
Total
|
$
|
3,313
|
|
$
|
1,472
|
|
$
|
303
|
|
|
$
|
2,321
|
|
|
$
|
7,409
|
|
|
$
|
4,410
|
|
$
|
1,287
|
|
$
|
303
|
|
|
$
|
2,843
|
|
|
$
|
8,843
|
|
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 14
.
|
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
|
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
$
|
14
|
|
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
211
|
|
|
$
|
246
|
|
Actual return on plan 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
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
$
|
14
|
|
|
$
|
24
|
|
|
$
|
2
|
|
|
$
|
263
|
|
|
$
|
303
|
|
Actual return on plan assets held at the reporting date
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
19
|
|
|
16
|
|
|||||
Purchases, sales and settlements — net
|
3
|
|
|
(7
|
)
|
|
(2
|
)
|
|
1
|
|
|
(5
|
)
|
|||||
Transfers into/(out of) Level 3 — net
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
|||||
Balance at end of year
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
270
|
|
1
|
$
|
303
|
|
1
|
Includes purchased annuity insurance contracts.
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Other
1
|
|
Total
|
|
|
Level 1
|
|
Level 2
|
|
Other
1
|
|
Total
|
|
||||||||
Cash and cash equivalents
|
$
|
73
|
|
$
|
—
|
|
$
|
—
|
|
$
|
73
|
|
|
$
|
78
|
|
$
|
—
|
|
$
|
—
|
|
$
|
78
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S.-based companies
|
93
|
|
—
|
|
—
|
|
93
|
|
|
96
|
|
—
|
|
—
|
|
96
|
|
||||||||
International-based companies
|
7
|
|
—
|
|
—
|
|
7
|
|
|
8
|
|
—
|
|
—
|
|
8
|
|
||||||||
Fixed-income securities:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government bonds
|
—
|
|
2
|
|
—
|
|
2
|
|
|
—
|
|
2
|
|
—
|
|
2
|
|
||||||||
Corporate bonds and debt securities
|
—
|
|
16
|
|
—
|
|
16
|
|
|
—
|
|
7
|
|
—
|
|
7
|
|
||||||||
Mutual, pooled and commingled funds
|
—
|
|
—
|
|
82
|
|
82
|
|
|
—
|
|
—
|
|
80
|
|
80
|
|
||||||||
Hedge funds/limited partnerships
|
—
|
|
—
|
|
8
|
|
8
|
|
|
—
|
|
—
|
|
8
|
|
8
|
|
||||||||
Real estate
|
—
|
|
—
|
|
4
|
|
4
|
|
|
—
|
|
—
|
|
5
|
|
5
|
|
||||||||
Other
|
—
|
|
—
|
|
4
|
|
4
|
|
|
—
|
|
—
|
|
4
|
|
4
|
|
||||||||
Total
|
$
|
173
|
|
$
|
18
|
|
$
|
98
|
|
$
|
289
|
|
|
$
|
182
|
|
$
|
9
|
|
$
|
97
|
|
$
|
288
|
|
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 14
.
|
|
Severance Pay
and Benefits
|
|
|
Outside Services
|
|
|
Other
Direct Costs
|
|
|
Total
|
|
||||
2016
|
|
|
|
|
|
|
|
||||||||
Accrued balance at beginning of year
|
$
|
144
|
|
|
$
|
8
|
|
|
$
|
52
|
|
|
$
|
204
|
|
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
|
|
2018
|
|
|
|
|
|
|
|
||||||||
Costs incurred
|
$
|
164
|
|
|
$
|
92
|
|
|
$
|
252
|
|
|
$
|
508
|
|
Payments
|
(209
|
)
|
|
(83
|
)
|
|
(211
|
)
|
|
(503
|
)
|
||||
Noncash and exchange
|
(69
|
)
|
1
|
—
|
|
|
(52
|
)
|
|
(121
|
)
|
||||
Accrued balance at end of year
|
$
|
76
|
|
|
$
|
10
|
|
|
$
|
4
|
|
|
$
|
90
|
|
1
|
Includes pension settlement charges. Refer to
Note 14
.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
Concentrate operations
|
64
|
%
|
|
51
|
%
|
|
40
|
%
|
Finished product operations
|
36
|
|
|
49
|
|
|
60
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
United States
|
$
|
11,344
|
|
|
$
|
14,727
|
|
|
$
|
19,899
|
|
International
|
20,512
|
|
|
20,683
|
|
|
21,964
|
|
|||
Net operating revenues
|
$
|
31,856
|
|
|
$
|
35,410
|
|
|
$
|
41,863
|
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
United States
|
$
|
4,154
|
|
|
$
|
4,163
|
|
|
$
|
6,784
|
|
International
|
4,078
|
|
|
4,040
|
|
|
3,851
|
|
|||
Property, plant and equipment — net
|
$
|
8,232
|
|
|
$
|
8,203
|
|
|
$
|
10,635
|
|
|
Europe, Middle East & Africa
|
|
|
Latin
America
|
|
|
North
America
|
|
|
Asia Pacific
|
|
|
Bottling
Investments
|
|
|
Corporate
|
|
|
Eliminations
|
|
|
Consolidated
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
$
|
7,138
|
|
|
$
|
3,975
|
|
|
$
|
11,505
|
|
|
$
|
4,809
|
|
|
$
|
3,760
|
|
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
31,292
|
|
|
Intersegment
|
564
|
|
|
39
|
|
|
263
|
|
|
388
|
|
|
11
|
|
|
—
|
|
|
(701
|
)
|
|
564
|
|
4
|
||||||||
Total net operating revenues
|
7,702
|
|
|
4,014
|
|
|
11,768
|
|
|
5,197
|
|
|
3,771
|
|
|
105
|
|
|
(701
|
)
|
|
31,856
|
|
|
||||||||
Operating income (loss)
|
3,714
|
|
|
2,321
|
|
|
2,453
|
|
|
2,278
|
|
|
(649
|
)
|
|
(1,417
|
)
|
|
—
|
|
|
8,700
|
|
|
||||||||
Interest income
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
612
|
|
|
—
|
|
|
682
|
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
919
|
|
|
—
|
|
|
919
|
|
|
||||||||
Depreciation and amortization
|
85
|
|
|
30
|
|
|
422
|
|
|
58
|
|
|
239
|
|
|
252
|
|
|
—
|
|
|
1,086
|
|
|
||||||||
Equity income (loss) — net
|
2
|
|
|
(19
|
)
|
|
(2
|
)
|
|
12
|
|
|
828
|
|
|
187
|
|
|
—
|
|
|
1,008
|
|
|
||||||||
Income (loss) from continuing operations
before income taxes
|
3,406
|
|
|
2,247
|
|
|
2,494
|
|
|
2,305
|
|
|
(612
|
)
|
|
(1,490
|
)
|
|
—
|
|
|
8,350
|
|
|
||||||||
Identifiable operating assets
1
|
7,985
|
|
|
1,715
|
|
|
17,913
|
|
|
1,999
|
|
2
|
4,135
|
|
2
|
22,649
|
|
|
—
|
|
|
56,396
|
|
5
|
||||||||
Investments
3
|
789
|
|
|
784
|
|
|
400
|
|
|
216
|
|
|
14,367
|
|
|
3,718
|
|
|
—
|
|
|
20,274
|
|
|
||||||||
Capital expenditures
|
77
|
|
|
90
|
|
|
429
|
|
|
31
|
|
|
316
|
|
|
404
|
|
|
—
|
|
|
1,347
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Third party
|
$
|
7,332
|
|
|
$
|
3,956
|
|
|
$
|
8,796
|
|
|
$
|
4,767
|
|
|
$
|
10,379
|
|
|
$
|
138
|
|
|
$
|
—
|
|
|
$
|
35,368
|
|
|
Intersegment
|
42
|
|
|
73
|
|
|
1,954
|
|
|
409
|
|
|
81
|
|
|
—
|
|
|
(2,517
|
)
|
|
42
|
|
4
|
||||||||
Total net operating revenues
|
7,374
|
|
|
4,029
|
|
|
10,750
|
|
|
5,176
|
|
|
10,460
|
|
|
138
|
|
|
(2,517
|
)
|
|
35,410
|
|
|
||||||||
Operating income (loss)
|
3,625
|
|
|
2,218
|
|
|
2,591
|
|
|
2,147
|
|
|
(962
|
)
|
|
(2,020
|
)
|
|
—
|
|
|
7,599
|
|
|
||||||||
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
|
|
|
2,320
|
|
|
2,179
|
|
|
(2,358
|
)
|
|
(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
|
|
|
$
|
6,587
|
|
|
$
|
4,788
|
|
|
$
|
19,601
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
41,863
|
|
|
Intersegment
|
264
|
|
|
73
|
|
|
3,738
|
|
|
506
|
|
|
134
|
|
|
5
|
|
|
(4,720
|
)
|
|
—
|
|
|
||||||||
Total net operating revenues
|
7,278
|
|
|
3,819
|
|
|
10,325
|
|
|
5,294
|
|
|
19,735
|
|
|
132
|
|
|
(4,720
|
)
|
|
41,863
|
|
|
||||||||
Operating income (loss)
|
3,668
|
|
|
1,953
|
|
|
2,614
|
|
|
2,210
|
|
|
1
|
|
|
(1,789
|
)
|
|
—
|
|
|
8,657
|
|
|
||||||||
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
|
|
|
2,592
|
|
|
2,238
|
|
|
(1,955
|
)
|
|
(454
|
)
|
|
—
|
|
|
8,136
|
|
|
||||||||
Capital expenditures
|
62
|
|
|
45
|
|
|
438
|
|
|
107
|
|
|
1,329
|
|
|
281
|
|
|
—
|
|
|
2,262
|
|
|
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
10 percent
and
11 percent
of consolidated property, plant and equipment — net in 2018 and 2017, respectively.
|
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
$6,546 million
and
$7,329 million
of assets held for sale
—
discontinued operations as of
December 31, 2018
and
December 31, 2017
, respectively.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$4 million
for Latin America,
$175 million
for North America,
$31 million
for Bottling Investments and
$237 million
for Corporate, and increased by
$3 million
for Europe, Middle East and Africa and
$4 million
for Asia Pacific due to the Company's productivity and reinvestment program, including refinements to prior period accruals. In addition, income (loss) from continuing operations before income taxes was reduced by
$64 million
for Corporate and
$4 million
for Latin America due to pension settlements related to the Company's productivity and reinvestment program. Refer to
Note 14
and
Note 19
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$450 million
for Bottling Investments due to asset impairment charges. Refer to
Note 17
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$139 million
for Bottling Investments due to costs incurred to refranchise certain of our bottling operations.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$33 million
for Corporate due to tax litigation expense. Refer to
Note 12
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$19 million
for Corporate related to noncapitalizable transaction costs associated with pending and closed transactions.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$476 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 reduced by
$334 million
for Europe, Middle East and Africa,
$205 million
for Bottling Investments and
$52 million
for Latin America due to other-than-temporary impairment charges related to certain of our equity method investees. Refer to
Note 17
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$278 million
for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to
Note 4
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$124 million
for Bottling Investments and increased by
$13 million
for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$149 million
for Bottling Investments due to pension settlements related to the refranchising of North America bottling operations. Refer to
Note 14
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$79 million
for Corporate related to economic hedging activity associated with the purchase of Costa, which we acquired on January 3, 2019. Refer to
Note 6
and
Note 22
.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$34 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 reduced by
$33 million
for Bottling Investments primarily due to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$32 million
for Corporate related to acquiring a controlling interest in the Philippine bottling operations. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$296 million
for Corporate related to the sale of our equity ownership in Lindley. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$47 million
for Corporate related to the refranchising of our Latin American bottling operations. Refer to
Note 2
.
|
•
|
Income (loss) from continuing operations before income taxes was increased by
$27 million
for Corporate related to a net gain on the extinguishment of long-term debt. Refer to
Note 11
.
|
•
|
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
$193 million
for Corporate due to the Company's productivity and reinvestment program. Income (loss) from continuing operations before income taxes was also reduced by
$116 million
for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to
Note 14
and
Note 19
.
|
•
|
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 17
.
|
•
|
Operating income (loss) was reduced by
$280 million
and income (loss) from continuing operations before income taxes was reduced by
$419 million
for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to
Note 2
.
|
•
|
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by
$225 million
for Corporate as a result of a cash contribution we made to The Coca-Cola Foundation.
|
•
|
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 12
.
|
•
|
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.
|
•
|
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 18
.
|
•
|
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 selling a 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 11
.
|
•
|
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. Refer to
Note 17
.
|
•
|
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 Bottling Investments and
$105 million
for Corporate and increased by
$2 million
for Latin America due to the Company's productivity and reinvestment program, including refinements to prior period accruals. Refer to
Note 19
.
|
•
|
Operating income (loss) was reduced by
$276 million
and income (loss) from continuing operations before income taxes was reduced by
$297 million
for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2.
|
•
|
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.
|
•
|
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.
|
•
|
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.
|
•
|
Income (loss) from continuing operations before income taxes was reduced by
$118 million
for Bottling Investments due to pension settlement charges primarily as a result of our refranchising activities. Refer to
Note 14
.
|
•
|
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.
|
•
|
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
.
|
•
|
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 18
.
|
•
|
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
.
|
Year Ended December 31,
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
(Increase) decrease in trade accounts receivable
|
$
|
66
|
|
|
$
|
(141
|
)
|
|
$
|
(28
|
)
|
(Increase) decrease in inventories
|
(171
|
)
|
|
(355
|
)
|
|
(142
|
)
|
|||
(Increase) decrease in prepaid expenses and other assets
|
(221
|
)
|
|
506
|
|
|
279
|
|
|||
Increase (decrease) in accounts payable and accrued expenses
|
(289
|
)
|
|
(445
|
)
|
|
(540
|
)
|
|||
Increase (decrease) in accrued income taxes
|
(12
|
)
|
|
(153
|
)
|
|
750
|
|
|||
Increase (decrease) in other liabilities
1
|
(575
|
)
|
|
4,052
|
|
|
(544
|
)
|
|||
Net change in operating assets and liabilities
|
$
|
(1,202
|
)
|
|
$
|
3,464
|
|
|
$
|
(225
|
)
|
|
|
|
James R. Quincey
|
|
Larry M. Mark
|
Chief Executive Officer
February 21, 2019 |
|
Vice President and Controller
February 21, 2019 |
|
|
|
|
|
|
Kathy N. Waller
|
|
Mark Randazza
|
Executive Vice President and Chief Financial Officer
February 21, 2019 |
|
Vice President, Assistant Controller and Chief Accounting Officer
February 21, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
|
Full Year
|
|
|
|||||
(In millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
7,626
|
|
|
$
|
8,927
|
|
|
$
|
8,245
|
|
|
$
|
7,058
|
|
|
$
|
31,856
|
|
|
Gross profit
|
4,888
|
|
|
5,675
|
|
|
5,186
|
|
|
4,337
|
|
|
20,086
|
|
|
|||||
Net income attributable to shareowners of
The Coca-Cola Company
|
1,368
|
|
|
2,316
|
|
|
1,880
|
|
|
870
|
|
|
6,434
|
|
|
|||||
Basic net income per share
|
$
|
0.32
|
|
|
$
|
0.54
|
|
|
$
|
0.44
|
|
|
$
|
0.20
|
|
|
$
|
1.51
|
|
1
|
Diluted net income per share
|
$
|
0.32
|
|
|
$
|
0.54
|
|
|
$
|
0.44
|
|
|
$
|
0.20
|
|
|
$
|
1.50
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net operating revenues
|
$
|
9,118
|
|
|
$
|
9,702
|
|
|
$
|
9,078
|
|
|
$
|
7,512
|
|
|
$
|
35,410
|
|
|
Gross profit
|
5,605
|
|
|
6,043
|
|
|
5,684
|
|
|
4,823
|
|
|
22,155
|
|
|
|||||
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
|
1
|
The sum of the quarterly net income (loss) per share amounts does not agree to the full year net income per share amounts. We calculate net income (loss) 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 $390 million related to the impairment of certain assets. Refer to
Note 17
.
|
•
|
Charges of $95 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
A net loss of $85 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to
Note 4
.
|
•
|
A net charge of $51 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Charges of $45 million related to costs incurred to refranchise certain of our North America bottling operations.
|
•
|
A net loss of $33 million primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations.
|
•
|
Charges of $19 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
.
|
•
|
Charges of $150 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
Charges of $102 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
Charges of $60 million related to the impairment of certain assets. Refer to
Note 17
.
|
•
|
A
n other-than-temporary impairment charge of $52 million related to one of our international equity method investees. Refer to
Note 17
.
|
•
|
Charges of $47 million related to pension settlements as a result of North America refranchising. Refer to
Note 14
.
|
•
|
A net gain of $36 million related to the refranchising of our Latin American bottling operations. Refer to
Note 2
.
|
•
|
A net gain of $36 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to
Note 4
.
|
•
|
Charges of $34 million related to costs incurred to refranchise certain of our North America bottling operations.
|
•
|
A net charge of $33 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Charges of $22 million related to tax litigation expense. Refer to
Note 12
.
|
•
|
A net gain of $370 million related to the sale of our equity ownership in Lindley. Refer to
Note 2
.
|
•
|
Charges of $275 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
An other-than-temporary impairment charge of $205 million related to our equity method investee in Indonesia. Refer to
Note 17
.
|
•
|
Charges of $132 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
A net gain of $64 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to
Note 4
.
|
•
|
A gain of $41 million related to economic hedging activity associated with the purchase of Costa, which we acquired on January 3, 2019. Refer to
Note 6
.
|
•
|
Charges of $38 million related to costs incurred to refranchise certain of our North America bottling operations.
|
•
|
A net gain of $27 million related to the early extinguishment of long-term debt. Refer to
Note 11
.
|
•
|
A net gain of $19 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Charges of $12 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
.
|
•
|
A gain of $11 million related to the refranchising of our Latin American bottling operations. Refer to
Note 2
.
|
•
|
Other-than-temporary impairment charges of $334 million related to certain of our equity method investees in the Middle East. Refer to
Note 17
.
|
•
|
A net loss of $293 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to
Note 4
.
|
•
|
Charges of $131 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
A net loss of $120 million related to economic hedging activity associated with the purchase of Costa, which we acquired on January 3, 2019. Refer to
Note 6
.
|
•
|
Charges of $102 million related to pension settlements as a result of North America refranchising. Refer to
Note 14
.
|
•
|
Charges of $97 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
A loss of $74 million related to the sale of our equity ownership in Lindley. Refer to
Note 2
.
|
•
|
A net charge of $46 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
A net loss of $32 million related to acquiring a controlling interest in the Philippine bottling operations. Refer to
Note 2
.
|
•
|
Charges of $22 million related to costs incurred to refranchise certain of our North America bottling operations.
|
•
|
Charges of $497 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
Charges of $139 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
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
.
|
•
|
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 significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Charges of $60 million related to costs incurred to refranchise certain of our bottling operations.
|
•
|
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 CCBJHI. Refer to
Note 18
.
|
•
|
Charges of $214 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
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
.
|
•
|
Charges of $87 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
Charges of $44 million related to costs incurred to refranchise certain of our bottling operations.
|
•
|
A net charge of $38 million related to the early extinguishment of long-term debt. Refer to
Note 11
.
|
•
|
A net gain of $37 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
A gain of $9 million related to refranchising a substantial portion of our China bottling operations. Refer to
Note 2
.
|
•
|
Charges of $762 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
Charges of $213 million related to costs incurred to refranchise certain of our bottling operations.
|
•
|
Charges of $129 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
A gain of $79 million related to the refranchising of our remaining China bottling operations and related cost method investment. Refer to
Note 2
.
|
•
|
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
.
|
•
|
An other-than-temporary impairment charge of $50 million related to one of our international equity method investees. Refer to
Note 17
.
|
•
|
A net charge of $16 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
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 15
.
|
•
|
Charges of $667 million due to the refranchising of certain bottling territories in North America. Refer to
Note 2
.
|
•
|
Charges of $295 million due to the Company's productivity and reinvestment program. Refer to
Note 19
.
|
•
|
A charge of $225 million as a result of a cash contribution we made to The Coca-Cola Foundation.
|
•
|
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
.
|
•
|
Charges of $105 million related to costs incurred to refranchise certain of our bottling operations.
|
•
|
A net charge of $55 million related to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
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
.
|
(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.
|
|
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|
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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.
|
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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 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.
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101
|
|
The following financial information from The Coca-Cola Company's Annual Report on Form 10-K for the year ended December 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016, (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016, (iii) Consolidated Balance Sheets as of December 31, 2018 and 2017, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Shareowners' Equity for the years ended December 31, 2018, 2017 and 2016 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
Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 21, 2019
|
|
*By:
|
|
/s/ JENNIFER MANNING
|
|
|
Jennifer Manning
Attorney-in-fact
|
|
|
|
|
|
February 21, 2019
|
•
|
Your principal place of assignment will be Singapore. Your employer in Singapore will be Pacific Refreshments Pte. Ltd.
|
•
|
If you have not done so already, you will formally separate from any local employer in your home country. We will be providing you with documentation relating to that separation shortly.
|
•
|
Your annual base salary for your new position will be $525,000.
|
•
|
You will continue to be eligible to participate in the annual Performance Incentive Plan. Your target annual incentive 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. 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
|
•
|
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 2 years, or until December 31, 2024, 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 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.
|
•
|
To support your transition to Singapore, you will participate in the Global Mobility Policy and be provided standard benefits of that program. In addition, the Company will continue to pay for schooling and related fees incurred in Spain for your children for the remainder of the current school year. The Company will also reimburse for up to three additional business class tickets for you to travel to Spain to visit your family during this time. 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 assignment.
|
•
|
If you have not already done so, 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.
|
•
|
This letter is provided as information and does not constitute an employment contract.
|
•
|
Your principal place of assignment will be Dublin, Republic of Ireland. You will be employed by European Refreshments upon receipt of required work permits.
|
•
|
If you have not done so already, you will formally separate from any local employer in your home country. We will be providing you with documentation relating to that separation shortly.
|
•
|
Your annual base salary for your new position will be $600,000.
|
•
|
You will continue to be eligible to participate in the annual Performance Incentive Plan. Your target annual incentive 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. 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. Because this represents an increase from your prior target level, you will have an additional two years, or until December 31, 2020, 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 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. Further information regarding this benefit is enclosed.
|
•
|
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. In addition, the Company will continue to pay for schooling and tutoring fees incurred for your children while they remain in Greece. The Company will also continue to pay for your family’s security support in Greece. 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.
|
•
|
If you have not already done so, 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.
|
•
|
This letter is provided as information and does not constitute an employment contract.
|
•
|
Your principal place of assignment will be Atlanta, Georgia.
|
•
|
Your annual base salary for your new position will be $490,000.
|
•
|
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 for your new position is between 0% and 150% (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
|
•
|
You are expected to continue to maintain share ownership pursuant to the Company’s share ownership guidelines at a level equal to two 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 $7,500 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 already done so, 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.
|
•
|
This letter is provided as information and does not constitute an employment contract.
|
Subsidiaries of The Coca-Cola Company
As of December 31, 2018
|
|
|
Organized Under
Laws of:
|
The Coca-Cola Company
|
Delaware
|
Subsidiaries:
|
|
ACCBC Holding Company LLC
|
Georgia
|
Atlantic Industries
|
Cayman Islands
|
Atlantic Manufacturing
|
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 (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 Philippines, Inc.
|
Philippines
|
Coca-Cola Beverages Vietnam Ltd.
|
Vietnam
|
Coca-Cola Beverages West, Inc.
|
Delaware
|
Coca-Cola Bottlers (Malaysia) Sdn. Bhd.
|
Malaysia
|
Coca-Cola China Industries Limited
|
Cook Islands
|
Coca-Cola de Chile S.A.
|
Chile
|
Coca-Cola Financial Corporation
|
Delaware
|
Coca-Cola GmbH
|
Germany
|
Coca-Cola Holdings (Asia) Limited
|
Hong Kong
|
Coca-Cola Holdings (Overseas) Limited
|
Delaware
|
Coca-Cola Holdings (United Kingdom) Limited
|
United Kingdom
|
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 Ltd.
|
Canada
|
Coca-Cola Midi S.A.S.
|
France
|
Coca-Cola Oasis LLC
|
Delaware
|
Coca-Cola Overseas Parent Limited
|
Delaware
|
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
|
Subsidiaries of The Coca-Cola Company
As of December 31, 2018
|
|
continued from page 1
|
|
|
Organized Under
Laws of:
|
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
|
Middle Eastern Refreshments Holdings Ltd.
|
United Arab Emirates
|
Middle Eastern Refreshments Ltd.
|
United Arab Emirates
|
Pacific Refreshments Pte. Ltd.
|
Singapore
|
Peru Beverage Limitada S.R.L.
|
Peru
|
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 333-194215 on Form S-8
|
13.
|
Registration Statement Number 333-195553 on Form S-8
|
14.
|
Registration Statement Number 333-214273 on Form S-3
|
15.
|
Registration Statement Number 333-221170 on Form S-8
|
16.
|
Registration Statement Number 333-224573 on Form S-8
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Date: February 21, 2019
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/s/ JAMES QUINCEY
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James R. Quincey
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Chief Executive Officer
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Date: February 21, 2019
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/s/ KATHY N. WALLER
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Kathy N. Waller
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Executive Vice President and Chief Financial Officer
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/s/ JAMES QUINCEY
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James R. Quincey
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Chief Executive Officer
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February 21, 2019
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/s/ KATHY N. WALLER
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Kathy N. Waller
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Executive Vice President and Chief Financial Officer
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February 21, 2019
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