|
Delaware
|
|
58-0628465
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
One Coca-Cola Plaza
|
|
|
|
Atlanta
|
Georgia
|
|
30313
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.25 Par Value
|
KO
|
New York Stock Exchange
|
0.000% Notes Due 2021
|
KO21B
|
New York Stock Exchange
|
Floating Rate Notes Due 2021
|
KO21C
|
New York Stock Exchange
|
1.125% Notes Due 2022
|
KO22
|
New York Stock Exchange
|
0.125% Notes Due 2022
|
KO22B
|
New York Stock Exchange
|
0.75% Notes Due 2023
|
KO23B
|
New York Stock Exchange
|
0.500% Notes Due 2024
|
KO24
|
New York Stock Exchange
|
1.875% Notes Due 2026
|
KO26
|
New York Stock Exchange
|
0.750% Notes Due 2026
|
KO26C
|
New York Stock Exchange
|
1.125% Notes Due 2027
|
KO27
|
New York Stock Exchange
|
1.250% Notes Due 2031
|
KO31
|
New York Stock Exchange
|
1.625% Notes Due 2035
|
KO35
|
New York Stock Exchange
|
1.100% Notes Due 2036
|
KO36
|
New York Stock Exchange
|
Class of Common Stock
|
|
Shares Outstanding as of October 21, 2019
|
$0.25 Par Value
|
|
4,284,491,377
|
|
|
|
Page
|
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
Condensed Consolidated Statements of Income
Three and Nine Months Ended September 27, 2019 and September 28, 2018 |
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income
Three and Nine Months Ended September 27, 2019 and September 28, 2018 |
|
|
|
|
|
Condensed Consolidated Balance Sheets
September 27, 2019 and December 31, 2018 |
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 27, 2019 and September 28, 2018 |
|
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Net Operating Revenues
|
$
|
9,507
|
|
$
|
8,775
|
|
|
$
|
28,198
|
|
$
|
26,494
|
|
Cost of goods sold
|
3,767
|
|
3,346
|
|
|
11,053
|
|
9,965
|
|
||||
Gross Profit
|
5,740
|
|
5,429
|
|
|
17,145
|
|
16,529
|
|
||||
Selling, general and administrative expenses
|
3,116
|
|
2,660
|
|
|
8,879
|
|
8,286
|
|
||||
Other operating charges
|
125
|
|
155
|
|
|
344
|
|
916
|
|
||||
Operating Income
|
2,499
|
|
2,614
|
|
|
7,922
|
|
7,327
|
|
||||
Interest income
|
153
|
|
171
|
|
|
428
|
|
510
|
|
||||
Interest expense
|
230
|
|
214
|
|
|
711
|
|
697
|
|
||||
Equity income (loss) — net
|
346
|
|
348
|
|
|
808
|
|
813
|
|
||||
Other income (loss) — net
|
324
|
|
(546
|
)
|
|
(81
|
)
|
(693
|
)
|
||||
Income Before Income Taxes
|
3,092
|
|
2,373
|
|
|
8,366
|
|
7,260
|
|
||||
Income taxes
|
503
|
|
555
|
|
|
1,446
|
|
1,711
|
|
||||
Consolidated Net Income
|
2,589
|
|
1,818
|
|
|
6,920
|
|
5,549
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
(4
|
)
|
(62
|
)
|
|
42
|
|
(15
|
)
|
||||
Net Income Attributable to Shareowners
of The Coca-Cola Company
|
$
|
2,593
|
|
$
|
1,880
|
|
|
$
|
6,878
|
|
$
|
5,564
|
|
Basic Net Income Per Share1
|
$
|
0.61
|
|
$
|
0.44
|
|
|
$
|
1.61
|
|
$
|
1.31
|
|
Diluted Net Income Per Share1
|
$
|
0.60
|
|
$
|
0.44
|
|
|
$
|
1.60
|
|
$
|
1.29
|
|
Average Shares Outstanding
|
4,280
|
|
4,255
|
|
|
4,273
|
|
4,258
|
|
||||
Effect of dilutive securities
|
41
|
|
40
|
|
|
38
|
|
39
|
|
||||
Average Shares Outstanding Assuming Dilution
|
4,321
|
|
4,295
|
|
|
4,311
|
|
4,297
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Consolidated Net Income
|
$
|
2,589
|
|
$
|
1,818
|
|
|
$
|
6,920
|
|
$
|
5,549
|
|
Other Comprehensive Income:
|
|
|
|
|
|
||||||||
Net foreign currency translation adjustments
|
(960
|
)
|
(210
|
)
|
|
(679
|
)
|
(1,635
|
)
|
||||
Net gains (losses) on derivatives
|
46
|
|
(30
|
)
|
|
30
|
|
22
|
|
||||
Net change in unrealized gains (losses) on available-for-sale debt
securities
|
16
|
|
10
|
|
|
46
|
|
(91
|
)
|
||||
Net change in pension and other benefit liabilities
|
32
|
|
56
|
|
|
100
|
|
372
|
|
||||
Total Comprehensive Income
|
1,723
|
|
1,644
|
|
|
6,417
|
|
4,217
|
|
||||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
(145
|
)
|
60
|
|
|
(88
|
)
|
9
|
|
||||
Total Comprehensive Income Attributable to Shareowners
of The Coca-Cola Company
|
$
|
1,868
|
|
$
|
1,584
|
|
|
$
|
6,505
|
|
$
|
4,208
|
|
|
September 27,
2019 |
|
December 31,
2018 |
|
||
ASSETS
|
|
|
||||
Current Assets
|
|
|
||||
Cash and cash equivalents
|
$
|
7,531
|
|
$
|
9,077
|
|
Short-term investments
|
2,001
|
|
2,025
|
|
||
Total Cash, Cash Equivalents and Short-Term Investments
|
9,532
|
|
11,102
|
|
||
Marketable securities
|
3,456
|
|
5,013
|
|
||
Trade accounts receivable, less allowances of $525 and $501, respectively
|
4,353
|
|
3,685
|
|
||
Inventories
|
3,266
|
|
3,071
|
|
||
Prepaid expenses and other assets
|
2,510
|
|
2,059
|
|
||
Total Current Assets
|
23,117
|
|
24,930
|
|
||
Equity method investments
|
18,689
|
|
19,412
|
|
||
Other investments
|
878
|
|
867
|
|
||
Other assets
|
5,750
|
|
4,148
|
|
||
Deferred income tax assets
|
2,452
|
|
2,674
|
|
||
Property, plant and equipment, less accumulated depreciation of
$8,267 and $8,013, respectively
|
10,217
|
|
9,598
|
|
||
Trademarks with indefinite lives
|
9,167
|
|
6,682
|
|
||
Bottlers' franchise rights with indefinite lives
|
109
|
|
51
|
|
||
Goodwill
|
16,465
|
|
14,109
|
|
||
Other intangible assets
|
589
|
|
745
|
|
||
Total Assets
|
$
|
87,433
|
|
$
|
83,216
|
|
LIABILITIES AND EQUITY
|
|
|
||||
Current Liabilities
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
12,727
|
|
$
|
9,533
|
|
Loans and notes payable
|
10,972
|
|
13,835
|
|
||
Current maturities of long-term debt
|
492
|
|
5,003
|
|
||
Accrued income taxes
|
909
|
|
411
|
|
||
Total Current Liabilities
|
25,100
|
|
28,782
|
|
||
Long-term debt
|
31,012
|
|
25,376
|
|
||
Other liabilities
|
8,057
|
|
7,646
|
|
||
Deferred income tax liabilities
|
2,581
|
|
2,354
|
|
||
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
|
17,039
|
|
16,520
|
|
||
Reinvested earnings
|
65,481
|
|
63,234
|
|
||
Accumulated other comprehensive income (loss)
|
(13,706
|
)
|
(12,814
|
)
|
||
Treasury stock, at cost — 2,756 and 2,772 shares, respectively
|
(51,861
|
)
|
(51,719
|
)
|
||
Equity Attributable to Shareowners of The Coca-Cola Company
|
18,713
|
|
16,981
|
|
||
Equity attributable to noncontrolling interests
|
1,970
|
|
2,077
|
|
||
Total Equity
|
20,683
|
|
19,058
|
|
||
Total Liabilities and Equity
|
$
|
87,433
|
|
$
|
83,216
|
|
|
Nine Months Ended
|
|||||
|
September 27,
2019 |
|
September 28,
2018 |
|
||
Operating Activities
|
|
|
||||
Consolidated net income
|
$
|
6,920
|
|
$
|
5,549
|
|
Depreciation and amortization
|
965
|
|
807
|
|
||
Stock-based compensation expense
|
146
|
|
167
|
|
||
Deferred income taxes
|
(326
|
)
|
26
|
|
||
Equity (income) loss — net of dividends
|
(336
|
)
|
(385
|
)
|
||
Foreign currency adjustments
|
79
|
|
(169
|
)
|
||
Significant (gains) losses — net
|
(389
|
)
|
541
|
|
||
Other operating charges
|
147
|
|
662
|
|
||
Other items
|
444
|
|
130
|
|
||
Net change in operating assets and liabilities
|
121
|
|
(1,638
|
)
|
||
Net Cash Provided by Operating Activities
|
7,771
|
|
5,690
|
|
||
Investing Activities
|
|
|
|
|
||
Purchases of investments
|
(4,113
|
)
|
(6,809
|
)
|
||
Proceeds from disposals of investments
|
5,674
|
|
11,079
|
|
||
Acquisitions of businesses, equity method investments and nonmarketable securities
|
(5,376
|
)
|
(598
|
)
|
||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
|
266
|
|
1,354
|
|
||
Purchases of property, plant and equipment
|
(1,206
|
)
|
(1,048
|
)
|
||
Proceeds from disposals of property, plant and equipment
|
944
|
|
97
|
|
||
Other investing activities
|
(90
|
)
|
33
|
|
||
Net Cash Provided by (Used in) Investing Activities
|
(3,901
|
)
|
4,108
|
|
||
Financing Activities
|
|
|
|
|
||
Issuances of debt
|
19,598
|
|
21,422
|
|
||
Payments of debt
|
(21,716
|
)
|
(23,595
|
)
|
||
Issuances of stock
|
923
|
|
891
|
|
||
Purchases of stock for treasury
|
(690
|
)
|
(1,596
|
)
|
||
Dividends
|
(3,419
|
)
|
(3,321
|
)
|
||
Other financing activities
|
(33
|
)
|
(184
|
)
|
||
Net Cash Provided by (Used in) Financing Activities
|
(5,337
|
)
|
(6,383
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash
equivalents
|
(75
|
)
|
(249
|
)
|
||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
|
|
|
|
|
||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
during the period
|
(1,542
|
)
|
3,166
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
|
9,318
|
|
6,373
|
|
||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period
|
7,776
|
|
9,539
|
|
||
Less: Restricted cash and restricted cash equivalents at end of period
|
245
|
|
318
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
7,531
|
|
$
|
9,221
|
|
|
September 27,
2019 |
|
December 31,
2018 |
|
||
Cash and cash equivalents
|
$
|
7,531
|
|
$
|
9,077
|
|
Cash and cash equivalents included in other assets1
|
245
|
|
241
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
7,776
|
|
$
|
9,318
|
|
|
September 28,
2018 |
|
December 31, 2017
|
|
||
Cash and cash equivalents
|
$
|
9,221
|
|
$
|
6,102
|
|
Cash and cash equivalents included in assets held for sale
|
—
|
|
13
|
|
||
Cash and cash equivalents included in other assets1
|
318
|
|
258
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
9,539
|
|
$
|
6,373
|
|
•
|
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").
|
|
United States
|
|
International
|
|
Total
|
|
|||
Three Months Ended September 27, 2019
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
1,414
|
|
$
|
4,026
|
|
$
|
5,440
|
|
Finished product operations
|
1,676
|
|
2,391
|
|
4,067
|
|
|||
Total
|
$
|
3,090
|
|
$
|
6,417
|
|
$
|
9,507
|
|
Three Months Ended September 28, 2018
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
1,191
|
|
$
|
4,039
|
|
$
|
5,230
|
|
Finished product operations
|
1,776
|
|
1,769
|
|
3,545
|
|
|||
Total
|
$
|
2,967
|
|
$
|
5,808
|
|
$
|
8,775
|
|
|
United States
|
|
International
|
|
Total
|
|
|||
Nine Months Ended September 27, 2019
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
4,014
|
|
$
|
11,782
|
|
$
|
15,796
|
|
Finished product operations
|
4,824
|
|
7,578
|
|
12,402
|
|
|||
Total
|
$
|
8,838
|
|
$
|
19,360
|
|
$
|
28,198
|
|
Nine Months Ended September 28, 2018
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
3,563
|
|
$
|
11,961
|
|
$
|
15,524
|
|
Finished product operations
|
5,035
|
|
5,935
|
|
10,970
|
|
|||
Total
|
$
|
8,598
|
|
$
|
17,896
|
|
$
|
26,494
|
|
|
Fair Value with Changes Recognized in Income
|
|
Measurement Alternative — No Readily Determinable Fair Value
|
|
||
September 27, 2019
|
|
|
||||
Marketable securities
|
$
|
310
|
|
$
|
—
|
|
Other investments
|
796
|
|
82
|
|
||
Other assets
|
989
|
|
—
|
|
||
Total equity securities
|
$
|
2,095
|
|
$
|
82
|
|
December 31, 2018
|
|
|
||||
Marketable securities
|
$
|
278
|
|
$
|
—
|
|
Other investments
|
787
|
|
80
|
|
||
Other assets
|
869
|
|
—
|
|
||
Total equity securities
|
$
|
1,934
|
|
$
|
80
|
|
|
Three Months Ended
|
|||||
|
September 27, 2019
|
|
September 28, 2018
|
|
||
Net gains (losses) recognized during the period related to equity securities
|
$
|
29
|
|
$
|
62
|
|
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period |
—
|
|
5
|
|
||
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
|
$
|
29
|
|
$
|
57
|
|
|
Nine Months Ended
|
|||||
|
September 27, 2019
|
|
September 28, 2018
|
|
||
Net gains (losses) recognized during the period related to equity securities
|
$
|
163
|
|
$
|
21
|
|
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period |
16
|
|
13
|
|
||
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
|
$
|
147
|
|
$
|
8
|
|
|
|
Gross Unrealized
|
Estimated Fair Value
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
||||||
September 27, 2019
|
|
|
|
|
||||||||
Trading securities
|
$
|
45
|
|
$
|
1
|
|
$
|
—
|
|
$
|
46
|
|
Available-for-sale securities
|
3,445
|
|
150
|
|
(2
|
)
|
3,593
|
|
||||
Total debt securities
|
$
|
3,490
|
|
$
|
151
|
|
$
|
(2
|
)
|
$
|
3,639
|
|
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
|
|
|
September 27, 2019
|
|
December 31, 2018
|
||||||||||
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
$
|
155
|
|
|
$
|
—
|
|
$
|
—
|
|
Marketable securities
|
46
|
|
3,100
|
|
|
44
|
|
4,691
|
|
||||
Other assets
|
—
|
|
338
|
|
|
—
|
|
302
|
|
||||
Total debt securities
|
$
|
46
|
|
$
|
3,593
|
|
|
$
|
44
|
|
$
|
4,993
|
|
|
Cost
|
|
Estimated
Fair Value |
|
||
Within 1 year
|
$
|
2,145
|
|
$
|
2,200
|
|
After 1 year through 5 years
|
1,038
|
|
1,102
|
|
||
After 5 years through 10 years
|
72
|
|
85
|
|
||
After 10 years
|
190
|
|
206
|
|
||
Total
|
$
|
3,445
|
|
$
|
3,593
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 27, 2019
|
|
September 28, 2018
|
|
|
September 27, 2019
|
|
September 28, 2018
|
|
||||
Gross gains
|
$
|
9
|
|
$
|
11
|
|
|
$
|
37
|
|
$
|
19
|
|
Gross losses
|
(1
|
)
|
(8
|
)
|
|
(5
|
)
|
(21
|
)
|
||||
Proceeds
|
1,284
|
|
3,421
|
|
|
3,074
|
|
9,744
|
|
|
September 27,
2019 |
|
December 31,
2018 |
|
||
Raw materials and packaging
|
$
|
2,044
|
|
$
|
2,025
|
|
Finished goods
|
881
|
|
773
|
|
||
Other
|
341
|
|
273
|
|
||
Total inventories
|
$
|
3,266
|
|
$
|
3,071
|
|
|
|
Fair Value1,2
|
|||||
Derivatives Designated as Hedging Instruments
|
Balance Sheet Location1
|
September 27,
2019 |
|
December 31, 2018
|
|
||
Assets:
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
$
|
80
|
|
$
|
43
|
|
Foreign currency contracts
|
Other assets
|
103
|
|
114
|
|
||
Interest rate contracts
|
Other assets
|
695
|
|
88
|
|
||
Total assets
|
|
$
|
878
|
|
$
|
245
|
|
Liabilities:
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
$
|
38
|
|
$
|
19
|
|
Foreign currency contracts
|
Other liabilities
|
36
|
|
15
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
—
|
|
1
|
|
||
Interest rate contracts
|
Other liabilities
|
—
|
|
40
|
|
||
Total liabilities
|
|
$
|
74
|
|
$
|
75
|
|
|
|
Fair Value1,2
|
|||||
Derivatives Not Designated as Hedging Instruments
|
Balance Sheet Location1
|
September 27,
2019 |
|
December 31, 2018
|
|
||
Assets:
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
$
|
52
|
|
$
|
61
|
|
Commodity contracts
|
Prepaid expenses and other assets
|
1
|
|
2
|
|
||
Other derivative instruments
|
Prepaid expenses and other assets
|
10
|
|
7
|
|
||
Other derivative instruments
|
Other assets
|
2
|
|
—
|
|
||
Total assets
|
|
$
|
65
|
|
$
|
70
|
|
Liabilities:
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
$
|
33
|
|
$
|
101
|
|
Foreign currency contracts
|
Other liabilities
|
4
|
|
—
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
60
|
|
38
|
|
||
Commodity contracts
|
Other liabilities
|
4
|
|
8
|
|
||
Other derivative instruments
|
Accounts payable and accrued expenses
|
—
|
|
13
|
|
||
Total liabilities
|
|
$
|
101
|
|
$
|
160
|
|
|
Gain (Loss) Recognized
in OCI
|
|
Location of Gain (Loss)
Recognized in Income1
|
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)2
|
|
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|
2
|
|||
Three Months Ended September 27, 2019
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
71
|
|
Net operating revenues
|
$
|
(5
|
)
|
$
|
—
|
|
|
Foreign currency contracts
|
3
|
|
Cost of goods sold
|
2
|
|
—
|
|
|
|||
Foreign currency contracts
|
—
|
|
Interest expense
|
(3
|
)
|
—
|
|
|
|||
Foreign currency contracts
|
(46
|
)
|
Other income (loss) — net
|
(46
|
)
|
—
|
|
|
|||
Interest rate contracts
|
(30
|
)
|
Interest expense
|
(10
|
)
|
—
|
|
|
|||
Commodity contracts
|
1
|
|
Cost of goods sold
|
—
|
|
—
|
|
|
|||
Total
|
$
|
(1
|
)
|
|
$
|
(62
|
)
|
$
|
—
|
|
|
Three Months Ended September 28, 2018
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
2
|
|
Net operating revenues
|
$
|
43
|
|
$
|
—
|
|
3
|
Foreign currency contracts
|
3
|
|
Cost of goods sold
|
4
|
|
—
|
|
3
|
|||
Foreign currency contracts
|
—
|
|
Interest expense
|
(2
|
)
|
—
|
|
|
|||
Foreign currency contracts
|
20
|
|
Other income (loss) — net
|
23
|
|
2
|
|
|
|||
Interest rate contracts
|
—
|
|
Interest expense
|
(9
|
)
|
—
|
|
|
|||
Total
|
$
|
25
|
|
|
$
|
59
|
|
$
|
2
|
|
|
|
Gain (Loss) Recognized
in OCI
|
|
Location of Gain (Loss)
Recognized in Income1
|
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)2
|
|
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|
2
|
|||
Nine Months Ended September 27, 2019
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
44
|
|
Net operating revenues
|
$
|
2
|
|
$
|
—
|
|
|
Foreign currency contracts
|
1
|
|
Cost of goods sold
|
9
|
|
—
|
|
|
|||
Foreign currency contracts
|
—
|
|
Interest expense
|
(7
|
)
|
—
|
|
|
|||
Foreign currency contracts
|
(99
|
)
|
Other income (loss) — net
|
(139
|
)
|
—
|
|
|
|||
Interest rate contracts
|
(47
|
)
|
Interest expense
|
(30
|
)
|
—
|
|
|
|||
Commodity contracts
|
1
|
|
Cost of goods sold
|
—
|
|
—
|
|
|
|||
Total
|
$
|
(100
|
)
|
|
$
|
(165
|
)
|
$
|
—
|
|
|
Nine Months Ended September 28, 2018
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
10
|
|
Net operating revenues
|
$
|
97
|
|
$
|
1
|
|
|
Foreign currency contracts
|
13
|
|
Cost of goods sold
|
5
|
|
(3
|
)
|
|
|||
Foreign currency contracts
|
—
|
|
Interest expense
|
(6
|
)
|
—
|
|
|
|||
Foreign currency contracts
|
46
|
|
Other income (loss) — net
|
3
|
|
4
|
|
|
|||
Interest rate contracts
|
22
|
|
Interest expense
|
(29
|
)
|
(8
|
)
|
|
|||
Commodity contracts
|
—
|
|
Cost of goods sold
|
—
|
|
(5
|
)
|
|
|||
Total
|
$
|
91
|
|
|
$
|
70
|
|
$
|
(11
|
)
|
|
Hedging Instruments and Hedged Items
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Three Months Ended
|
|||||||
September 27,
2019 |
|
September 28,
2018 |
|
||||
Interest rate contracts
|
Interest expense
|
$
|
206
|
|
$
|
(38
|
)
|
Fixed-rate debt
|
Interest expense
|
(200
|
)
|
41
|
|
||
Net impact to interest expense
|
|
$
|
6
|
|
$
|
3
|
|
Net impact of fair value hedging instruments
|
|
$
|
6
|
|
$
|
3
|
|
Hedging Instruments and Hedged Items
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Nine Months Ended
|
|||||||
September 27,
2019 |
|
September 28,
2018 |
|
||||
Interest rate contracts
|
Interest expense
|
$
|
647
|
|
$
|
(57
|
)
|
Fixed-rate debt
|
Interest expense
|
(637
|
)
|
50
|
|
||
Net impact to interest expense
|
|
$
|
10
|
|
$
|
(7
|
)
|
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
|
|
$
|
10
|
|
$
|
(7
|
)
|
|
Carrying Value of the Hedged Item
|
|
Cumulative Amount of Fair Value
Hedging Adjustments Included in the
Carrying Value of the Hedged Item1
|
||||||||||
|
September 27,
2019 |
|
December 31,
2018 |
|
|
September 27,
2019 |
|
December 31,
2018 |
|
||||
Long-term debt
|
$
|
13,091
|
|
$
|
8,043
|
|
|
$
|
710
|
|
$
|
62
|
|
|
Notional Amount
|
|
Gain (Loss) Recognized in OCI
|
|||||||||||||||||
|
as of
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||||
|
September 27,
2019 |
|
December 31, 2018
|
|
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||||
Foreign currency contracts
|
$
|
325
|
|
$
|
—
|
|
|
$
|
13
|
|
$
|
6
|
|
|
$
|
42
|
|
$
|
6
|
|
Foreign currency denominated debt
|
12,034
|
|
12,494
|
|
|
476
|
|
53
|
|
|
444
|
|
347
|
|
||||||
Total
|
$
|
12,359
|
|
$
|
12,494
|
|
|
$
|
489
|
|
$
|
59
|
|
|
$
|
486
|
|
$
|
353
|
|
Derivatives Not Designated as Hedging Instruments
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Three Months Ended
|
|||||||
September 27,
2019 |
|
September 28,
2018 |
|
||||
Foreign currency contracts
|
Net operating revenues
|
$
|
15
|
|
$
|
8
|
|
Foreign currency contracts
|
Cost of goods sold
|
2
|
|
9
|
|
||
Foreign currency contracts
|
Other income (loss) — net
|
(21
|
)
|
29
|
|
||
Commodity contracts
|
Cost of goods sold
|
(60
|
)
|
3
|
|
||
Other derivative instruments
|
Selling, general and administrative expenses
|
4
|
|
18
|
|
||
Other derivative instruments
|
Other income (loss) — net
|
5
|
|
—
|
|
||
Total
|
|
$
|
(55
|
)
|
$
|
67
|
|
Derivatives Not Designated as Hedging Instruments
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Nine Months Ended
|
|||||||
September 27,
2019 |
|
September 28,
2018 |
|
||||
Foreign currency contracts
|
Net operating revenues
|
$
|
2
|
|
$
|
34
|
|
Foreign currency contracts
|
Cost of goods sold
|
4
|
|
3
|
|
||
Foreign currency contracts
|
Other income (loss) — net
|
(46
|
)
|
(87
|
)
|
||
Interest rate contracts
|
Interest expense
|
—
|
|
(1
|
)
|
||
Commodity contracts
|
Cost of goods sold
|
(58
|
)
|
15
|
|
||
Other derivative instruments
|
Selling, general and administrative expenses
|
32
|
|
11
|
|
||
Other derivative instruments
|
Other income (loss) — net
|
39
|
|
—
|
|
||
Total
|
|
$
|
(27
|
)
|
$
|
(25
|
)
|
•
|
€750 million total principal amount of notes due March 8, 2021, at a variable interest rate equal to the three month Euro Interbank Offered Rate ("EURIBOR") plus 0.20 percent;
|
•
|
€1,000 million total principal amount of notes due September 22, 2022, at a fixed interest rate of 0.125 percent;
|
•
|
€1,000 million total principal amount of notes due September 22, 2026, at a fixed interest rate of 0.75 percent;
|
•
|
€750 million total principal amount of notes due March 8, 2031, at a fixed interest rate of 1.25 percent;
|
•
|
$1,000 million total principal amount of notes due September 6, 2024, at a fixed interest rate of 1.75 percent; and
|
•
|
$1,000 million total principal amount of notes due September 6, 2029, at a fixed interest rate of 2.125 percent.
|
•
|
€1,500 million total principal amount of notes due March 8, 2019, at a variable interest rate equal to the three month EURIBOR plus 0.25 percent;
|
•
|
$1,000 million total principal amount of notes due May 30, 2019, at a fixed interest rate of 1.375 percent; and
|
•
|
€2,000 million total principal amount of notes due September 9, 2019, at a variable interest rate equal to the three month EURIBOR plus 0.23 percent.
|
|
September 27,
2019 |
|
|
Operating lease ROU assets1
|
$
|
1,310
|
|
Current portion of operating lease liabilities2
|
$
|
253
|
|
Noncurrent portion of operating lease liabilities3
|
1,076
|
|
|
Total operating lease liabilities
|
$
|
1,329
|
|
Weighted-average remaining lease term
|
7 years
|
|
Weighted-average discount rate
|
3
|
%
|
2019
|
$
|
72
|
|
2020
|
272
|
|
|
2021
|
236
|
|
|
2022
|
201
|
|
|
2023
|
163
|
|
|
Thereafter
|
521
|
|
|
Total operating lease payments
|
1,465
|
|
|
Less: Imputed interest
|
136
|
|
|
Total operating lease liabilities
|
$
|
1,329
|
|
|
September 27,
2019 |
|
|
December 31, 2018
|
|
||
Foreign currency translation adjustments1
|
$
|
(11,803
|
)
|
|
$
|
(11,045
|
)
|
Accumulated derivative net gains (losses)1, 2
|
(125
|
)
|
|
(126
|
)
|
||
Unrealized net gains (losses) on available-for-sale debt securities1
|
103
|
|
|
50
|
|
||
Adjustments to pension and other benefit liabilities1
|
(1,881
|
)
|
|
(1,693
|
)
|
||
Accumulated other comprehensive income (loss)
|
$
|
(13,706
|
)
|
|
$
|
(12,814
|
)
|
|
Nine Months Ended September 27, 2019
|
||||||||
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||
Consolidated net income
|
$
|
6,878
|
|
$
|
42
|
|
$
|
6,920
|
|
Other comprehensive income:
|
|
|
|
||||||
Net foreign currency translation adjustments
|
(549
|
)
|
(130
|
)
|
(679
|
)
|
|||
Net gains (losses) on derivatives1
|
30
|
|
—
|
|
30
|
|
|||
Net change in unrealized gains (losses) on available-for-sale debt
securities2
|
46
|
|
—
|
|
46
|
|
|||
Net change in pension and other benefit liabilities
|
100
|
|
—
|
|
100
|
|
|||
Total comprehensive income
|
$
|
6,505
|
|
$
|
(88
|
)
|
$
|
6,417
|
|
Three Months Ended September 27, 2019
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
(256
|
)
|
|
$
|
(6
|
)
|
|
$
|
(262
|
)
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(924
|
)
|
|
—
|
|
|
(924
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
489
|
|
|
(122
|
)
|
|
367
|
|
|||
Net foreign currency translation adjustments
|
$
|
(691
|
)
|
|
$
|
(128
|
)
|
|
$
|
(819
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
Reclassification adjustments recognized in net income
|
62
|
|
|
(15
|
)
|
|
47
|
|
|||
Net gains (losses) on derivatives1
|
$
|
60
|
|
|
$
|
(14
|
)
|
|
$
|
46
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
29
|
|
|
$
|
(7
|
)
|
|
$
|
22
|
|
Reclassification adjustments recognized in net income
|
(8
|
)
|
|
2
|
|
|
(6
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
21
|
|
|
$
|
(5
|
)
|
|
$
|
16
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Reclassification adjustments recognized in net income
|
37
|
|
|
(9
|
)
|
|
28
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
41
|
|
|
$
|
(9
|
)
|
|
$
|
32
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$
|
(569
|
)
|
|
$
|
(156
|
)
|
|
$
|
(725
|
)
|
1
|
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
|
2
|
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
Nine Months Ended September 27, 2019
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
(141
|
)
|
|
$
|
(77
|
)
|
|
$
|
(218
|
)
|
Reclassification adjustments recognized in net income
|
192
|
|
|
—
|
|
|
192
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(888
|
)
|
|
—
|
|
|
(888
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
486
|
|
|
(121
|
)
|
|
365
|
|
|||
Net foreign currency translation adjustments
|
$
|
(351
|
)
|
|
$
|
(198
|
)
|
|
$
|
(549
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
(119
|
)
|
|
$
|
24
|
|
|
$
|
(95
|
)
|
Reclassification adjustments recognized in net income
|
166
|
|
|
(41
|
)
|
|
125
|
|
|||
Net gains (losses) on derivatives1
|
$
|
47
|
|
|
$
|
(17
|
)
|
|
$
|
30
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
88
|
|
|
$
|
(17
|
)
|
|
$
|
71
|
|
Reclassification adjustments recognized in net income
|
(32
|
)
|
|
7
|
|
|
(25
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
56
|
|
|
$
|
(10
|
)
|
|
$
|
46
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
11
|
|
|
$
|
5
|
|
|
$
|
16
|
|
Reclassification adjustments recognized in net income
|
111
|
|
|
(27
|
)
|
|
84
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
122
|
|
|
$
|
(22
|
)
|
|
$
|
100
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$
|
(126
|
)
|
|
$
|
(247
|
)
|
|
$
|
(373
|
)
|
1
|
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
|
2
|
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
Three Months Ended September 28, 2018
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
(446
|
)
|
|
$
|
19
|
|
|
$
|
(427
|
)
|
Reclassification adjustments recognized in net income
|
170
|
|
|
—
|
|
|
170
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(119
|
)
|
|
—
|
|
|
(119
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
59
|
|
|
(15
|
)
|
|
44
|
|
|||
Net foreign currency translation adjustments
|
$
|
(336
|
)
|
|
$
|
4
|
|
|
$
|
(332
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
19
|
|
|
$
|
(7
|
)
|
|
$
|
12
|
|
Reclassification adjustments recognized in net income
|
(58
|
)
|
|
16
|
|
|
(42
|
)
|
|||
Net gains (losses) on derivatives1
|
$
|
(39
|
)
|
|
$
|
9
|
|
|
$
|
(30
|
)
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
(13
|
)
|
|
$
|
24
|
|
|
$
|
11
|
|
Reclassification adjustments recognized in net income
|
(3
|
)
|
|
2
|
|
|
(1
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
(16
|
)
|
|
$
|
26
|
|
|
$
|
10
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Reclassification adjustments recognized in net income
|
65
|
|
|
(16
|
)
|
|
49
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
72
|
|
|
$
|
(16
|
)
|
|
$
|
56
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$
|
(319
|
)
|
|
$
|
23
|
|
|
$
|
(296
|
)
|
1
|
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
|
2
|
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
Nine Months Ended September 28, 2018
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
(1,431
|
)
|
|
$
|
(66
|
)
|
|
$
|
(1,497
|
)
|
Reclassification adjustments recognized in net income
|
268
|
|
|
—
|
|
|
268
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(695
|
)
|
|
—
|
|
|
(695
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
353
|
|
|
(88
|
)
|
|
265
|
|
|||
Net foreign currency translation adjustments
|
$
|
(1,505
|
)
|
|
$
|
(154
|
)
|
|
$
|
(1,659
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
84
|
|
|
$
|
(21
|
)
|
|
$
|
63
|
|
Reclassification adjustments recognized in net income
|
(56
|
)
|
|
15
|
|
|
(41
|
)
|
|||
Net gains (losses) on derivatives1
|
$
|
28
|
|
|
$
|
(6
|
)
|
|
$
|
22
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
(139
|
)
|
|
$
|
45
|
|
|
$
|
(94
|
)
|
Reclassification adjustments recognized in net income
|
2
|
|
|
1
|
|
|
3
|
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
(137
|
)
|
|
$
|
46
|
|
|
$
|
(91
|
)
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
278
|
|
|
$
|
(62
|
)
|
|
$
|
216
|
|
Reclassification adjustments recognized in net income
|
209
|
|
|
(53
|
)
|
|
156
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
487
|
|
|
$
|
(115
|
)
|
|
$
|
372
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$
|
(1,127
|
)
|
|
$
|
(229
|
)
|
|
$
|
(1,356
|
)
|
1
|
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
|
2
|
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
|
|
|
Amount Reclassified from AOCI
into Income
|
|
||||||
Description of AOCI Component
|
Financial Statement Line Item
|
Three Months Ended September 27, 2019
|
|
|
Nine Months Ended September 27, 2019
|
|
|
||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||
Divestitures, deconsolidations and other1
|
Other income (loss) — net
|
$
|
—
|
|
|
$
|
192
|
|
|
|
Income before income taxes
|
—
|
|
|
192
|
|
|
||
|
Income taxes
|
—
|
|
|
—
|
|
|
||
|
Consolidated net income
|
$
|
—
|
|
|
$
|
192
|
|
|
Derivatives:
|
|
|
|
|
|
||||
Foreign currency contracts
|
Net operating revenues
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
Foreign currency contracts
|
Cost of goods sold
|
(2
|
)
|
|
(9
|
)
|
|
||
Foreign currency contracts
|
Other income (loss) — net
|
46
|
|
|
139
|
|
|
||
Divestitures, deconsolidations and other
|
Other income (loss) — net
|
—
|
|
|
1
|
|
|
||
Foreign currency and interest rate contracts
|
Interest expense
|
13
|
|
|
37
|
|
|
||
|
Income before income taxes
|
62
|
|
|
166
|
|
|
||
|
Income taxes
|
(15
|
)
|
|
(41
|
)
|
|
||
|
Consolidated net income
|
$
|
47
|
|
|
$
|
125
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||
Sale of debt securities
|
Other income (loss) — net
|
$
|
(8
|
)
|
|
$
|
(32
|
)
|
|
|
Income before income taxes
|
(8
|
)
|
|
(32
|
)
|
|
||
|
Income taxes
|
2
|
|
|
7
|
|
|
||
|
Consolidated net income
|
$
|
(6
|
)
|
|
$
|
(25
|
)
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||
Recognized net actuarial loss
|
Other income (loss) — net
|
$
|
39
|
|
|
$
|
116
|
|
|
Recognized prior service cost (credit)
|
Other income (loss) — net
|
(2
|
)
|
|
(5
|
)
|
|
||
|
Income before income taxes
|
37
|
|
|
111
|
|
|
||
|
Income taxes
|
(9
|
)
|
|
(27
|
)
|
|
||
|
Consolidated net income
|
$
|
28
|
|
|
$
|
84
|
|
|
1
|
Primarily related to our previously held equity ownership interest in CHI and the sale of a portion of our equity ownership interest in Andina. Refer to Note 2.
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|
||||||||||||||||||
Three Months Ended September 27, 2019
|
Common Shares Outstanding
|
|
Total
|
|
Reinvested
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Common
Stock
|
|
Capital
Surplus
|
|
Treasury
Stock
|
|
Non-
controlling
Interests
|
|
|||||||
June 28, 2019
|
4,275
|
|
$
|
20,295
|
|
$
|
64,602
|
|
$
|
(12,981
|
)
|
$
|
1,760
|
|
$
|
16,833
|
|
$
|
(52,033
|
)
|
$
|
2,114
|
|
Comprehensive income (loss)
|
—
|
|
1,723
|
|
2,593
|
|
(725
|
)
|
—
|
|
—
|
|
—
|
|
(145
|
)
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola
Company ($0.40 per share)
|
—
|
|
(1,714
|
)
|
(1,714
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(7
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
|||||||
Business combinations including
purchase accounting adjustments
|
—
|
|
8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8
|
|
|||||||
Impact related to stock-based
compensation plans
|
9
|
|
378
|
|
—
|
|
—
|
|
—
|
|
206
|
|
172
|
|
—
|
|
|||||||
September 27, 2019
|
4,284
|
|
$
|
20,683
|
|
$
|
65,481
|
|
$
|
(13,706
|
)
|
$
|
1,760
|
|
$
|
17,039
|
|
$
|
(51,861
|
)
|
$
|
1,970
|
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|
||||||||||||||||||
Nine Months Ended September 27, 2019
|
Common Shares Outstanding
|
|
Total
|
|
Reinvested
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Common
Stock
|
|
Capital
Surplus
|
|
Treasury
Stock
|
|
Non-
controlling
Interests
|
|
|||||||
December 31, 2018
|
4,268
|
|
$
|
19,058
|
|
$
|
63,234
|
|
$
|
(12,814
|
)
|
$
|
1,760
|
|
$
|
16,520
|
|
$
|
(51,719
|
)
|
$
|
2,077
|
|
Adoption of accounting standards1
|
—
|
|
(18
|
)
|
501
|
|
(519
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Comprehensive income (loss)
|
—
|
|
6,417
|
|
6,878
|
|
(373
|
)
|
—
|
|
—
|
|
—
|
|
(88
|
)
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola
Company ($1.20 per share)
|
—
|
|
(5,132
|
)
|
(5,132
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(27
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
|||||||
Business combinations including
purchase accounting adjustments
|
—
|
|
8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8
|
|
|||||||
Purchases of treasury stock
|
(14
|
)
|
(635
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(635
|
)
|
—
|
|
|||||||
Impact related to stock-based
compensation plans
|
30
|
|
1,012
|
|
—
|
|
—
|
|
—
|
|
519
|
|
493
|
|
—
|
|
|||||||
September 27, 2019
|
4,284
|
|
$
|
20,683
|
|
$
|
65,481
|
|
$
|
(13,706
|
)
|
$
|
1,760
|
|
$
|
17,039
|
|
$
|
(51,861
|
)
|
$
|
1,970
|
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|||||||||||||||||||
Three Months Ended September 28, 2018
|
Common Shares Outstanding
|
|
Total
|
|
Reinvested
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Common
Stock |
|
Capital
Surplus |
|
Treasury
Stock |
|
Non-controlling
Interests |
|
|||||||
June 29, 2018
|
4,253
|
|
$
|
20,176
|
|
$
|
63,808
|
|
$
|
(11,774
|
)
|
$
|
1,760
|
|
$
|
16,117
|
|
$
|
(51,588
|
)
|
$
|
1,853
|
|
Comprehensive income (loss)
|
—
|
|
1,644
|
|
1,880
|
|
(296
|
)
|
—
|
|
—
|
|
—
|
|
60
|
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola Company ($0.39 per share) |
—
|
|
(1,660
|
)
|
(1,660
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(6
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6
|
)
|
|||||||
Purchases of treasury stock
|
(6
|
)
|
(241
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(241
|
)
|
—
|
|
|||||||
Impact related to stock-based
compensation plans
|
9
|
|
258
|
|
—
|
|
—
|
|
—
|
|
149
|
|
109
|
|
—
|
|
|||||||
Other activities
|
—
|
|
7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
|||||||
September 28, 2018
|
4,256
|
|
$
|
20,178
|
|
$
|
64,028
|
|
$
|
(12,070
|
)
|
$
|
1,760
|
|
$
|
16,266
|
|
$
|
(51,720
|
)
|
$
|
1,914
|
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|||||||||||||||||||
Nine Months Ended September 28, 2018
|
Common Shares Outstanding
|
|
Total
|
|
Reinvested
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Common
Stock |
|
Capital
Surplus |
|
Treasury
Stock |
|
Non-controlling
Interests |
|
|||||||
December 31, 2017
|
4,259
|
|
$
|
18,977
|
|
$
|
60,430
|
|
$
|
(10,305
|
)
|
$
|
1,760
|
|
$
|
15,864
|
|
$
|
(50,677
|
)
|
$
|
1,905
|
|
Adoption of accounting standards1
|
—
|
|
2,605
|
|
3,014
|
|
(409
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Comprehensive income (loss)
|
—
|
|
4,217
|
|
5,564
|
|
(1,356
|
)
|
—
|
|
—
|
|
—
|
|
9
|
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola
Company ($1.17 per share)
|
—
|
|
(4,980
|
)
|
(4,980
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(19
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(19
|
)
|
|||||||
Business combinations
|
—
|
|
13
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
|||||||
Purchases of treasury stock
|
(33
|
)
|
(1,451
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,451
|
)
|
—
|
|
|||||||
Impact related to stock-based
compensation plans
|
30
|
|
810
|
|
—
|
|
—
|
|
—
|
|
402
|
|
408
|
|
—
|
|
|||||||
Other activities
|
—
|
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
|||||||
September 28, 2018
|
4,256
|
|
$
|
20,178
|
|
$
|
64,028
|
|
$
|
(12,070
|
)
|
$
|
1,760
|
|
$
|
16,266
|
|
$
|
(51,720
|
)
|
$
|
1,914
|
|
|
Accrued Balance
June 28, 2019 |
|
Costs Incurred
Three Months Ended
September 27, 2019
|
|
Payments
|
|
Noncash
and Exchange |
|
Accrued Balance
September 27, 2019
|
|
|||||
Severance pay and benefits
|
$
|
49
|
|
$
|
6
|
|
$
|
(10
|
)
|
$
|
—
|
|
$
|
45
|
|
Outside services
|
8
|
|
23
|
|
(26
|
)
|
—
|
|
5
|
|
|||||
Other direct costs
|
8
|
|
32
|
|
(26
|
)
|
(6
|
)
|
8
|
|
|||||
Total
|
$
|
65
|
|
$
|
61
|
|
$
|
(62
|
)
|
$
|
(6
|
)
|
$
|
58
|
|
|
Accrued Balance
December 31, 2018
|
|
Costs Incurred
Nine Months Ended
September 27, 2019
|
|
Payments
|
|
Noncash
and Exchange |
|
Accrued Balance
September 27, 2019
|
|
|||||
Severance pay and benefits
|
$
|
76
|
|
$
|
18
|
|
$
|
(50
|
)
|
$
|
1
|
|
$
|
45
|
|
Outside services
|
10
|
|
73
|
|
(78
|
)
|
—
|
|
5
|
|
|||||
Other direct costs
|
4
|
|
93
|
|
(66
|
)
|
(23
|
)
|
8
|
|
|||||
Total
|
$
|
90
|
|
$
|
184
|
|
$
|
(194
|
)
|
$
|
(22
|
)
|
$
|
58
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||
|
Three Months Ended
|
||||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Service cost
|
$
|
26
|
|
$
|
30
|
|
|
$
|
2
|
|
$
|
3
|
|
Interest cost
|
73
|
|
75
|
|
|
7
|
|
6
|
|
||||
Expected return on plan assets1
|
(138
|
)
|
(160
|
)
|
|
(3
|
)
|
(3
|
)
|
||||
Amortization of prior service credit
|
(1
|
)
|
(1
|
)
|
|
(1
|
)
|
(4
|
)
|
||||
Amortization of net actuarial loss
|
38
|
|
29
|
|
|
1
|
|
1
|
|
||||
Net periodic benefit cost (income)
|
(2
|
)
|
(27
|
)
|
|
6
|
|
3
|
|
||||
Curtailment charges2
|
—
|
|
5
|
|
|
—
|
|
—
|
|
||||
Settlement charges2
|
—
|
|
35
|
|
|
—
|
|
—
|
|
||||
Special termination benefits2
|
—
|
|
8
|
|
|
—
|
|
—
|
|
||||
Total cost (income) recognized in condensed consolidated statements
of income
|
$
|
(2
|
)
|
$
|
21
|
|
|
$
|
6
|
|
$
|
3
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||
|
Nine Months Ended
|
||||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Service cost
|
$
|
78
|
|
$
|
93
|
|
|
$
|
7
|
|
$
|
8
|
|
Interest cost
|
218
|
|
221
|
|
|
20
|
|
18
|
|
||||
Expected return on plan assets1
|
(414
|
)
|
(490
|
)
|
|
(10
|
)
|
(10
|
)
|
||||
Amortization of prior service cost (credit)
|
(3
|
)
|
3
|
|
|
(2
|
)
|
(11
|
)
|
||||
Amortization of net actuarial loss
|
114
|
|
92
|
|
|
2
|
|
3
|
|
||||
Net periodic benefit cost (income)
|
(7
|
)
|
(81
|
)
|
|
17
|
|
8
|
|
||||
Curtailment charges2
|
—
|
|
5
|
|
|
—
|
|
—
|
|
||||
Settlement charges2
|
—
|
|
121
|
|
|
—
|
|
—
|
|
||||
Special termination benefits2
|
—
|
|
8
|
|
|
—
|
|
—
|
|
||||
Total cost (income) recognized in condensed consolidated statements
of income
|
$
|
(7
|
)
|
$
|
53
|
|
|
$
|
17
|
|
$
|
8
|
|
•
|
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.
|
September 27, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other3
|
|
Netting
Adjustment
|
|
4
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities with readily determinable values1
|
$
|
1,815
|
|
$
|
210
|
|
$
|
11
|
|
|
$
|
59
|
|
$
|
—
|
|
|
$
|
2,095
|
|
|
Debt securities1
|
—
|
|
3,620
|
|
19
|
|
|
—
|
|
—
|
|
|
3,639
|
|
|
||||||
Derivatives2
|
6
|
|
937
|
|
—
|
|
|
—
|
|
(537
|
)
|
5
|
406
|
|
7
|
||||||
Total assets
|
$
|
1,821
|
|
$
|
4,767
|
|
$
|
30
|
|
|
$
|
59
|
|
$
|
(537
|
)
|
|
$
|
6,140
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives2
|
$
|
(38
|
)
|
$
|
(137
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
147
|
|
6
|
$
|
(28
|
)
|
7
|
Total liabilities
|
$
|
(38
|
)
|
$
|
(137
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
147
|
|
|
$
|
(28
|
)
|
|
5
|
The Company is obligated to return $430 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 condensed consolidated balance sheet as follows: $406 million in the line item other assets and $28 million in the line item other liabilities. Refer to Note 6 for additional information related to the composition of our derivative portfolio.
|
December 31, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other3
|
|
Netting
Adjustment
|
|
4
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities with readily determinable values1
|
$
|
1,681
|
|
$
|
186
|
|
$
|
6
|
|
|
$
|
61
|
|
$
|
—
|
|
|
$
|
1,934
|
|
|
Debt securities1
|
—
|
|
5,018
|
|
19
|
|
|
—
|
|
—
|
|
|
5,037
|
|
|
||||||
Derivatives2
|
2
|
|
313
|
|
—
|
|
|
—
|
|
(261
|
)
|
5
|
54
|
|
7
|
||||||
Total assets
|
$
|
1,683
|
|
$
|
5,517
|
|
$
|
25
|
|
|
$
|
61
|
|
$
|
(261
|
)
|
|
$
|
7,025
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Derivatives2
|
$
|
(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.
|
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.
|
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 condensed consolidated balance sheet as follows: $54 million in the line item other assets; $3 million in the line item accounts payable and accrued expenses and $50 million in the line item other liabilities. Refer to Note 6 for additional information related to the composition of our derivative portfolio.
|
|
Gains (Losses)
|
|
||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
|
September 27,
2019 |
|
|
September 28,
2018 |
|
|
September 27,
2019 |
|
|
September 28,
2018 |
|
|
||||
Other-than-temporary impairment charges
|
$
|
(375
|
)
|
1
|
$
|
(205
|
)
|
1
|
$
|
(767
|
)
|
1
|
$
|
(257
|
)
|
1
|
CCBA asset adjustments
|
—
|
|
|
(554
|
)
|
3
|
(160
|
)
|
3
|
(554
|
)
|
3
|
||||
Investment in former equity method investee
|
—
|
|
|
—
|
|
|
(121
|
)
|
4
|
—
|
|
|
||||
Other long-lived asset impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(312
|
)
|
5
|
||||
Intangible asset impairment charges
|
(42
|
)
|
2
|
—
|
|
|
(42
|
)
|
2
|
(138
|
)
|
5
|
||||
Total
|
$
|
(417
|
)
|
|
$
|
(759
|
)
|
|
$
|
(1,090
|
)
|
|
$
|
(1,261
|
)
|
|
|
Europe, Middle East & Africa
|
|
Latin
America |
|
North
America |
|
Asia Pacific
|
|
Global Ventures
|
|
Bottling
Investments |
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
|||||||||
As of and for the Three Months Ended September 27, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
1,672
|
|
$
|
1,045
|
|
$
|
3,137
|
|
$
|
1,319
|
|
$
|
629
|
|
$
|
1,681
|
|
$
|
24
|
|
$
|
—
|
|
$
|
9,507
|
|
Intersegment
|
156
|
|
—
|
|
1
|
|
143
|
|
—
|
|
3
|
|
—
|
|
(303
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
1,828
|
|
1,045
|
|
3,138
|
|
1,462
|
|
629
|
|
1,684
|
|
24
|
|
(303
|
)
|
9,507
|
|
|||||||||
Operating income (loss)
|
886
|
|
603
|
|
641
|
|
594
|
|
77
|
|
7
|
|
(309
|
)
|
—
|
|
2,499
|
|
|||||||||
Income (loss) before income taxes
|
651
|
|
605
|
|
658
|
|
603
|
|
80
|
|
55
|
|
440
|
|
—
|
|
3,092
|
|
|||||||||
Identifiable operating assets
|
8,363
|
|
1,895
|
|
17,895
|
|
2,118
|
|
6,935
|
|
10,456
|
|
20,204
|
|
—
|
|
67,866
|
|
|||||||||
Noncurrent investments
|
483
|
|
719
|
|
365
|
|
223
|
|
14
|
|
13,892
|
|
3,871
|
|
—
|
|
19,567
|
|
|||||||||
As of and for the Three Months Ended September 28, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
1,702
|
|
$
|
1,001
|
|
$
|
2,972
|
|
$
|
1,348
|
|
$
|
183
|
|
$
|
1,552
|
|
$
|
17
|
|
$
|
—
|
|
$
|
8,775
|
|
Intersegment
|
124
|
|
1
|
|
119
|
|
72
|
|
—
|
|
13
|
|
—
|
|
(329
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
1,826
|
|
1,002
|
|
3,091
|
|
1,420
|
|
183
|
|
1,565
|
|
17
|
|
(329
|
)
|
8,775
|
|
|||||||||
Operating income (loss)
|
933
|
|
640
|
|
663
|
|
614
|
|
44
|
|
24
|
|
(304
|
)
|
—
|
|
2,614
|
|
|||||||||
Income (loss) before income taxes
|
943
|
|
636
|
|
662
|
|
628
|
|
47
|
|
(152
|
)
|
(391
|
)
|
—
|
|
2,373
|
|
|||||||||
Identifiable operating assets
|
7,884
|
|
1,685
|
|
17,693
|
|
2,254
|
|
969
|
|
8,647
|
|
25,790
|
|
—
|
|
64,922
|
|
|||||||||
Noncurrent investments
|
1,158
|
|
760
|
|
404
|
|
220
|
|
—
|
|
15,703
|
|
3,710
|
|
—
|
|
21,955
|
|
|||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Identifiable operating assets
|
$
|
7,414
|
|
$
|
1,715
|
|
$
|
17,519
|
|
$
|
1,996
|
|
$
|
968
|
|
$
|
10,525
|
|
$
|
22,800
|
|
$
|
—
|
|
$
|
62,937
|
|
Noncurrent investments
|
789
|
|
784
|
|
400
|
|
216
|
|
—
|
|
14,372
|
|
3,718
|
|
—
|
|
20,279
|
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $12 million for North America, $1 million for Europe, Middle East and Africa and $48 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $42 million for Asia Pacific due to an impairment charge related to a trademark. Refer to Note 16.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $21 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling operations.
|
•
|
Income (loss) before income taxes was reduced by $255 million for Europe, Middle East and Africa due to other-than-temporary impairment charges related to certain of our equity method investees in the Middle East. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $120 million for Bottling Investments due to an other-than-temporary impairment charge related to CCBJHI, an equity method investee. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $103 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 12.
|
•
|
Income (loss) before income taxes was reduced by $39 million for Bottling Investments due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
•
|
Income (loss) before income taxes was increased by $739 million for Corporate as a result of the sale of a retail and office building in New York City.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $39 million for North America, $10 million for Bottling Investments, and $65 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $4 million for Europe, Middle East and Africa, $1 million for Latin America, and $2 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) before income taxes was reduced by $35 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 13 and Note 14.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $38 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) before income taxes were reduced by $4 million for Corporate due to tax litigation expense.
|
•
|
Income (loss) before income taxes was reduced by $554 million for Corporate as a result of an impairment charge related to assets held by CCBA. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $275 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2.
|
•
|
Income (loss) before income taxes was reduced by $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $12 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) before income taxes was increased by $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2.
|
•
|
Income (loss) before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt.
|
•
|
Income (loss) before income taxes was increased by $21 million for Bottling Investments and reduced by $2 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) before income taxes was increased by $11 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
|
|
Europe, Middle East & Africa
|
|
Latin
America |
|
North
America |
|
Asia Pacific
|
|
Global Ventures
|
|
Bottling
Investments |
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
|
|||||||||
Nine Months Ended September 27, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
5,110
|
|
$
|
2,944
|
|
$
|
8,976
|
|
$
|
3,729
|
|
$
|
1,847
|
|
$
|
5,513
|
|
$
|
79
|
|
$
|
—
|
|
$
|
28,198
|
|
Intersegment
|
420
|
|
—
|
|
7
|
|
460
|
|
2
|
|
7
|
|
—
|
|
(896
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
5,530
|
|
2,944
|
|
8,983
|
|
4,189
|
|
1,849
|
|
5,520
|
|
79
|
|
(896
|
)
|
28,198
|
|
|||||||||
Operating income (loss)
|
2,902
|
|
1,687
|
|
1,938
|
|
1,867
|
|
216
|
|
226
|
|
(914
|
)
|
—
|
|
7,922
|
|
|||||||||
Income (loss) before income taxes
|
2,701
|
|
1,636
|
|
1,924
|
|
1,891
|
|
223
|
|
348
|
|
(357
|
)
|
—
|
|
8,366
|
|
|||||||||
Nine Months Ended September 28, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
5,123
|
|
$
|
2,990
|
|
$
|
8,580
|
|
$
|
3,853
|
|
$
|
586
|
|
$
|
5,277
|
|
$
|
85
|
|
$
|
—
|
|
$
|
26,494
|
|
Intersegment
|
397
|
|
39
|
|
243
|
|
296
|
|
2
|
|
17
|
|
—
|
|
(994
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
5,520
|
|
3,029
|
|
8,823
|
|
4,149
|
|
588
|
|
5,294
|
|
85
|
|
(994
|
)
|
26,494
|
|
|||||||||
Operating income (loss)
|
2,940
|
|
1,804
|
|
1,814
|
|
1,879
|
|
110
|
|
(318
|
)
|
(902
|
)
|
—
|
|
7,327
|
|
|||||||||
Income (loss) before income taxes
|
2,984
|
|
1,742
|
|
1,822
|
|
1,909
|
|
119
|
|
(274
|
)
|
(1,042
|
)
|
—
|
|
7,260
|
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Europe, Middle East and Africa, $42 million for North America, $3 million for Bottling Investments and $137 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $61 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 2.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $46 million for Corporate related to transaction costs associated with the purchase of Costa, which we acquired in January 2019. Refer to Note 2.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $42 million for Asia Pacific due to an impairment charge related to a trademark. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $406 million for Bottling Investments due to other-than-temporary impairment charges related to CCBJHI, an equity method investee. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $255 million for Europe, Middle East and Africa due to other-than-temporary impairment charges related to certain of our equity method investees in the Middle East. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $160 million for Corporate as a result of CCBA asset adjustments. Refer to Note 2.
|
•
|
Income (loss) before income taxes was reduced by $121 million for Corporate resulting from a loss in conjunction with our acquisition of the remaining equity ownership interest in CHI. Refer to Note 2.
|
•
|
Income (loss) before income taxes was reduced by $105 million for Bottling Investments and $2 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) before income taxes was reduced by $107 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2.
|
•
|
Income (loss) before income taxes was reduced by $57 million for North America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $49 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
|
•
|
Income (loss) before income taxes was increased by $739 million for Corporate as a result of the sale of a retail and office building in New York City.
|
•
|
Income (loss) before income taxes was increased by $39 million for Corporate related to the sale of a portion of our equity ownership interest in Andina. Refer to Note 2.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Latin America, $138 million for North America, $32 million for Bottling Investments and $144 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $2 million for Europe, Middle East and Africa and $1 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) before income taxes was reduced by $74 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 13 and Note 14.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $450 million for Bottling Investments due to asset impairment charges. Refer to Note 16.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $117 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 12.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $31 million for Corporate due to tax litigation expense.
|
•
|
Income (loss) before income taxes was reduced by $554 million for Corporate as a result of an impairment charge related to assets held by CCBA. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $379 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2.
|
•
|
Income (loss) before income taxes was reduced by $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $78 million for Bottling Investments and was 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) before income taxes was reduced by $52 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
|
•
|
Income (loss) before income taxes was reduced by $47 million for Bottling Investments due to pension settlements related to the refranchising of North America bottling operations. Refer to Note 14.
|
•
|
Income (loss) 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) before income taxes was reduced by $33 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) before income taxes was increased by $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2.
|
•
|
Income (loss) 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) before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt.
|
September 27, 2019
|
Fair
Value
|
|
Carrying
Value
|
|
Difference
|
|
|||
Monster Beverage Corporation
|
$
|
5,904
|
|
$
|
3,736
|
|
$
|
2,168
|
|
Coca-Cola European Partners plc
|
4,841
|
|
3,519
|
|
1,322
|
|
|||
Coca-Cola FEMSA, S.A.B. de C.V.
|
3,500
|
|
1,798
|
|
1,702
|
|
|||
Coca-Cola HBC AG
|
2,768
|
|
1,056
|
|
1,712
|
|
|||
Coca-Cola Amatil Limited
|
1,625
|
|
575
|
|
1,050
|
|
|||
Coca-Cola Bottlers Japan Holdings Inc.
|
788
|
|
788
|
|
—
|
|
|||
Coca-Cola Consolidated, Inc.
|
748
|
|
144
|
|
604
|
|
|||
Coca-Cola İçecek A.Ş.
|
303
|
|
203
|
|
100
|
|
|||
Embotelladora Andina S.A.
|
202
|
|
118
|
|
84
|
|
|||
Total
|
$
|
20,679
|
|
$
|
11,937
|
|
$
|
8,742
|
|
|
Percent Change 2019 versus 2018
|
|
||||||||||
|
Three Months Ended September 27, 2019
|
|
Nine Months Ended September 27, 2019
|
|
||||||||
|
Unit Cases1,2,3
|
|
Concentrate
Sales4
|
|
|
Unit Cases1,2,3
|
|
|
Concentrate
Sales4
|
|
|
|
Worldwide
|
2
|
%
|
|
(1
|
)%
|
6
|
2
|
%
|
|
2
|
%
|
6
|
Europe, Middle East & Africa
|
1
|
%
|
|
1
|
%
|
|
2
|
%
|
|
3
|
%
|
10
|
Latin America
|
1
|
|
|
(8
|
)
|
|
—
|
|
|
(2
|
)
|
|
North America
|
1
|
|
|
(2
|
)
|
7
|
—
|
|
|
(2
|
)
|
|
Asia Pacific
|
4
|
|
|
2
|
|
8
|
6
|
|
|
4
|
|
8
|
Global Ventures
|
15
|
|
|
18
|
|
9
|
7
|
|
|
7
|
|
|
Bottling Investments
|
24
|
|
5
|
N/A
|
|
|
23
|
|
5
|
N/A
|
|
|
5
|
After considering the impact of acquisitions and divestitures, unit case volume for Bottling Investments grew 7 percent and 9 percent for the three and nine months ended September 27, 2019, respectively.
|
6
|
After considering the impact of acquisitions and divestitures, worldwide concentrate sales volume declined 2 percent and grew 1 percent for the three and nine months ended September 27, 2019, respectively.
|
9
|
After considering the impact of acquisitions and divestitures, concentrate sales volume for Global Ventures grew 17 percent for the three months ended September 27, 2019.
|
|
Percent Change 2019 versus 2018
|
|||||||||
|
Volume1
|
|
Price, Product & Geographic Mix
|
|
Foreign Currency Fluctuations
|
|
Acquisitions & Divestitures2
|
|
Total
|
|
Consolidated
|
(2
|
)%
|
6
|
%
|
(3
|
)%
|
6
|
%
|
8
|
%
|
Europe, Middle East & Africa
|
1
|
%
|
3
|
%
|
(7
|
)%
|
3
|
%
|
—
|
|
Latin America
|
(8
|
)
|
20
|
|
(8
|
)
|
—
|
|
4
|
|
North America
|
(1
|
)
|
3
|
|
—
|
|
(1
|
)
|
2
|
|
Asia Pacific
|
3
|
|
—
|
|
1
|
|
—
|
|
3
|
|
Global Ventures
|
17
|
|
(3
|
)
|
(14
|
)
|
243
|
|
243
|
|
Bottling Investments
|
7
|
|
2
|
|
(3
|
)
|
2
|
|
8
|
|
•
|
Europe, Middle East and Africa — favorable price mix across a majority of the business units and favorable geographic mix;
|
•
|
Latin America — favorable price mix in all business units, the timing of concentrate shipments in Brazil in the prior year and the impact of inflationary environments in certain markets, partially offset by unfavorable geographic mix;
|
•
|
North America — favorable price mix driven by revenue growth management initiatives across the beverage categories;
|
•
|
Asia Pacific — favorable price mix in all business units offset by unfavorable geographic mix;
|
•
|
Global Ventures — unfavorable product mix; and
|
•
|
Bottling Investments — favorable price, product and package mix in certain bottling operations and favorable geographic mix.
|
|
Percent Change 2019 versus 2018
|
|||||||||
|
Volume1
|
|
Price, Product & Geographic Mix
|
|
Foreign Currency Fluctuations
|
|
Acquisitions & Divestitures2
|
|
Total
|
|
Consolidated
|
1
|
%
|
4
|
%
|
(5
|
)%
|
6
|
%
|
6
|
%
|
Europe, Middle East & Africa
|
3
|
%
|
4
|
%
|
(10
|
)%
|
3
|
%
|
—
|
%
|
Latin America
|
(2
|
)
|
11
|
|
(11
|
)
|
—
|
|
(3
|
)
|
North America
|
(2
|
)
|
4
|
|
—
|
|
—
|
|
2
|
|
Asia Pacific
|
5
|
|
(2
|
)
|
(2
|
)
|
(1
|
)
|
1
|
|
Global Ventures
|
7
|
|
(1
|
)
|
(18
|
)
|
227
|
|
214
|
|
Bottling Investments
|
9
|
|
3
|
|
(6
|
)
|
(1
|
)
|
4
|
|
•
|
Europe, Middle East and Africa — favorable price mix across a majority of the business units and the timing of concentrate shipments as a result of certain bottlers increasing their concentrate inventories due to uncertainties related to Brexit;
|
•
|
Latin America — favorable price mix across all business units and the impact of inflationary environments in certain markets, partially offset by unfavorable geographic mix;
|
•
|
North America — favorable price mix driven by revenue growth management initiatives across the beverage categories;
|
•
|
Asia Pacific — unfavorable geographic mix partially offset by favorable price mix in all business units;
|
•
|
Global Ventures — unfavorable product mix; and
|
•
|
Bottling Investments — favorable price, product and package mix in certain bottling operations, partially offset by unfavorable geographic mix.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Stock-based compensation expense
|
$
|
58
|
|
$
|
46
|
|
|
$
|
146
|
|
$
|
167
|
|
Advertising expenses
|
1,201
|
|
1,108
|
|
|
3,319
|
|
3,275
|
|
||||
Selling and distribution expenses
|
733
|
|
604
|
|
|
2,121
|
|
1,839
|
|
||||
Other operating expenses
|
1,124
|
|
902
|
|
|
3,293
|
|
3,005
|
|
||||
Selling, general and administrative expenses
|
$
|
3,116
|
|
$
|
2,660
|
|
|
$
|
8,879
|
|
$
|
8,286
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
||||
Europe, Middle East & Africa
|
$
|
1
|
|
$
|
(4
|
)
|
|
$
|
2
|
|
$
|
(2
|
)
|
Latin America
|
—
|
|
(1
|
)
|
|
—
|
|
2
|
|
||||
North America
|
12
|
|
39
|
|
|
42
|
|
138
|
|
||||
Asia Pacific
|
42
|
|
(2
|
)
|
|
42
|
|
(1
|
)
|
||||
Global Ventures
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Bottling Investments
|
21
|
|
47
|
|
|
64
|
|
594
|
|
||||
Corporate
|
49
|
|
76
|
|
|
194
|
|
185
|
|
||||
Total
|
$
|
125
|
|
$
|
155
|
|
|
$
|
344
|
|
$
|
916
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
Europe, Middle East & Africa
|
35.4
|
%
|
35.7
|
%
|
|
36.6
|
%
|
40.1
|
%
|
Latin America
|
24.1
|
|
24.5
|
|
|
21.3
|
|
24.6
|
|
North America
|
25.6
|
|
25.3
|
|
|
24.4
|
|
24.8
|
|
Asia Pacific
|
23.8
|
|
23.5
|
|
|
23.6
|
|
25.6
|
|
Global Ventures
|
3.1
|
|
1.7
|
|
|
2.7
|
|
1.5
|
|
Bottling Investments
|
0.3
|
|
0.9
|
|
|
2.9
|
|
(4.3
|
)
|
Corporate
|
(12.3
|
)
|
(11.6
|
)
|
|
(11.5
|
)
|
(12.3
|
)
|
Total
|
100.0
|
%
|
100.0
|
%
|
|
100.0
|
%
|
100.0
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||
|
September 27,
2019 |
|
September 28,
2018 |
|
|
September 27,
2019 |
|
September 28,
2018 |
|
Consolidated
|
26.3
|
%
|
29.8
|
%
|
|
28.1
|
%
|
27.7
|
%
|
Europe, Middle East & Africa
|
53.0
|
%
|
54.8
|
%
|
|
56.8
|
%
|
57.4
|
%
|
Latin America
|
57.7
|
|
64.0
|
|
|
57.3
|
|
60.3
|
|
North America
|
20.4
|
|
22.3
|
|
|
21.6
|
|
21.1
|
|
Asia Pacific
|
45.0
|
|
45.6
|
|
|
50.1
|
|
48.8
|
|
Global Ventures
|
12.2
|
|
24.1
|
|
|
11.7
|
|
18.8
|
|
Bottling Investments
|
0.4
|
|
1.6
|
|
|
4.1
|
|
(6.0
|
)
|
Corporate
|
*
|
|
*
|
|
|
*
|
|
*
|
|
•
|
€750 million total principal amount of notes due March 8, 2021, at a variable interest rate equal to the three month Euro Interbank Offered Rate ("EURIBOR") plus 0.20 percent;
|
•
|
€1,000 million total principal amount of notes due September 22, 2022, at a fixed interest rate of 0.125 percent;
|
•
|
€1,000 million total principal amount of notes due September 22, 2026, at a fixed interest rate of 0.75 percent;
|
•
|
€750 million total principal amount of notes due March 8, 2031, at a fixed interest rate of 1.25 percent;
|
•
|
$1,000 million total principal amount of notes due September 6, 2024, at a fixed interest rate of 1.75 percent; and
|
•
|
$1,000 million total principal amount of notes due September 6, 2029, at a fixed interest rate of 2.125 percent.
|
•
|
€1,500 million total principal amount of notes due March 8, 2019, at a variable interest rate equal to the three month EURIBOR plus 0.25 percent;
|
•
|
$1,000 million total principal amount of notes due May 30, 2019, at a fixed interest rate of 1.375 percent; and
|
•
|
€2,000 million total principal amount of notes due September 9, 2019, at a variable interest rate equal to the three month EURIBOR plus 0.23 percent.
|
|
September 27,
2019 |
|
December 31, 2018
|
|
Increase
(Decrease)
|
|
|
Percent
Change
|
|
|||
Cash and cash equivalents
|
$
|
7,531
|
|
$
|
9,077
|
|
$
|
(1,546
|
)
|
|
(17
|
)%
|
Short-term investments
|
2,001
|
|
2,025
|
|
(24
|
)
|
|
(1
|
)
|
|||
Marketable securities
|
3,456
|
|
5,013
|
|
(1,557
|
)
|
|
(31
|
)
|
|||
Trade accounts receivable — net
|
4,353
|
|
3,685
|
|
668
|
|
|
18
|
|
|||
Inventories
|
3,266
|
|
3,071
|
|
195
|
|
|
6
|
|
|||
Prepaid expenses and other assets
|
2,510
|
|
2,059
|
|
451
|
|
|
22
|
|
|||
Equity method investments
|
18,689
|
|
19,412
|
|
(723
|
)
|
|
(4
|
)
|
|||
Other investments
|
878
|
|
867
|
|
11
|
|
|
1
|
|
|||
Other assets
|
5,750
|
|
4,148
|
|
1,602
|
|
|
39
|
|
|||
Deferred income tax assets
|
2,452
|
|
2,674
|
|
(222
|
)
|
|
(8
|
)
|
|||
Property, plant and equipment — net
|
10,217
|
|
9,598
|
|
619
|
|
|
6
|
|
|||
Trademarks with indefinite lives
|
9,167
|
|
6,682
|
|
2,485
|
|
|
37
|
|
|||
Bottlers' franchise rights with indefinite lives
|
109
|
|
51
|
|
58
|
|
|
114
|
|
|||
Goodwill
|
16,465
|
|
14,109
|
|
2,356
|
|
|
17
|
|
|||
Other intangible assets
|
589
|
|
745
|
|
(156
|
)
|
|
(21
|
)
|
|||
Total assets
|
$
|
87,433
|
|
$
|
83,216
|
|
$
|
4,217
|
|
|
5
|
%
|
Accounts payable and accrued expenses
|
$
|
12,727
|
|
$
|
9,533
|
|
$
|
3,194
|
|
|
34
|
%
|
Loans and notes payable
|
10,972
|
|
13,835
|
|
(2,863
|
)
|
|
(21
|
)
|
|||
Current maturities of long-term debt
|
492
|
|
5,003
|
|
(4,511
|
)
|
|
(90
|
)
|
|||
Accrued income taxes
|
909
|
|
411
|
|
498
|
|
|
121
|
|
|||
Long-term debt
|
31,012
|
|
25,376
|
|
5,636
|
|
|
22
|
|
|||
Other liabilities
|
8,057
|
|
7,646
|
|
411
|
|
|
5
|
|
|||
Deferred income tax liabilities
|
2,581
|
|
2,354
|
|
227
|
|
|
10
|
|
|||
Total liabilities
|
$
|
66,750
|
|
$
|
64,158
|
|
$
|
2,592
|
|
|
4
|
%
|
Net assets
|
$
|
20,683
|
|
$
|
19,058
|
|
$
|
1,625
|
|
1
|
9
|
%
|
•
|
Cash and cash equivalents and marketable securities decreased primarily due to funding the acquisition of Costa.
|
•
|
Trade accounts receivable — net increased primarily due to the impact of acquisitions.
|
•
|
Other assets increased primarily as a result of our adoption of Accounting Standards Codification 842, Leases ("ASC 842") and the acquisition of Costa, which required us to record $1,310 million of operating lease right-of-use assets.
|
•
|
Trademarks with indefinite lives and goodwill increased primarily due to $2.4 billion of trademarks and $2.5 billion of goodwill related to the preliminary allocation of the Costa purchase price.
|
•
|
Accounts payable and accrued expenses increased primarily due to the accrual of the Company's third quarter 2019 dividend of approximately $1.7 billion, which was paid during the first week of October. Additionally, accounts payable and accrued expenses increased due to our adoption of ASC 842, the impact of working capital initiatives and the acquisition of Costa, which required us to record $253 million related to the current portion of operating lease liabilities and the extension of payment terms.
|
•
|
Loans and notes payable decreased primarily due to net payments of commercial paper and short-term debt.
|
•
|
Current maturities of long-term debt decreased as a result of payments of long-term debt. Refer to the heading "Cash Flows from Financing Activities" above for additional information.
|
•
|
Long-term debt increased primarily due to the Company's issuances of debt. Refer to the heading "Cash Flows from Financing Activities" above for additional information.
|
•
|
Other liabilities increased primarily as a result of our adoption of ASC 842 and the acquisition of Costa, which required us to record $1,076 million related to the noncurrent portion of operating lease liabilities, partially offset by the reclassification of the current portion of the one-time transition tax required by the Tax Reform Act and other taxes to accrued income taxes.
|
Period
|
Total Number
of Shares
Purchased1
|
|
Average
Price Paid
Per Share
|
|
Total Number
of Shares
Purchased as
Part of the
Publicly
Announced
Plans2
|
|
Maximum
Number of
Shares That May
Yet Be
Purchased Under
the Publicly
Announced
Plans3
|
|
|
June 29, 2019 through July 26, 2019
|
2,759
|
|
$
|
51.92
|
|
—
|
|
168,335,321
|
|
July 27, 2019 through August 23, 2019
|
606
|
|
52.78
|
|
—
|
|
168,335,321
|
|
|
August 24, 2019 through September 27, 2019
|
16,994
|
|
55.02
|
|
—
|
|
168,335,321
|
|
|
Total
|
20,359
|
|
$
|
54.53
|
|
—
|
|
|
|
•
|
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.
|
|
|
THE COCA-COLA COMPANY
(Registrant)
|
|
|
|
|
|
/s/ LARRY M. MARK
|
Date:
|
October 24, 2019
|
Larry M. Mark
Vice President and Controller
(On behalf of the Registrant)
|
|
|
|
|
|
/s/ MARK RANDAZZA
|
Date:
|
October 24, 2019
|
Mark Randazza
Vice President, Assistant Controller and Chief Accounting Officer
(Principal Accounting Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Coca-Cola Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
October 24, 2019
|
|
|
|
|
/s/ JAMES QUINCEY
|
|
James Quincey
Chairman of the Board of Directors and Chief Executive Officer of The Coca-Cola Company
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Coca-Cola Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
October 24, 2019
|
|
|
|
|
/s/ JOHN MURPHY
|
|
John Murphy
Executive Vice President and Chief Financial Officer of The Coca-Cola Company
|
(1)
|
to my knowledge, the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ JAMES QUINCEY
|
James Quincey
Chairman of the Board of Directors and Chief Executive Officer of The Coca-Cola Company
|
October 24, 2019
|
|
|
/s/ JOHN MURPHY
|
John Murphy
Executive Vice President and Chief Financial Officer of The Coca-Cola Company
|
October 24, 2019
|