We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coca-Cola European Partners Plc Ordinary Shares (delisted) | NYSE:CCE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 46.72 | 0 | 01:00:00 |
|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR
|
|
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR
|
|
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
27-2197395
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer [X]
|
|
Accelerated filer
[ ]
|
Non-accelerated filer
[ ]
|
|
Smaller reporting company
[ ]
|
(Do not check if a smaller reporting company)
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
Condensed Consolidated Statements of Income for the First Quarter of 2016 and 2015
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) for the First Quarter of 2016 and 2015
|
|
|
|
|
|
Condensed Consolidated Balance Sheets as of April 1, 2016 and December 31, 2015
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows for the First Quarter of 2016 and 2015
|
|
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Net sales
|
$
|
1,517
|
|
|
$
|
1,631
|
|
Cost of sales
|
957
|
|
|
1,063
|
|
||
Gross profit
|
560
|
|
|
568
|
|
||
Selling, delivery, and administrative expenses
|
438
|
|
|
410
|
|
||
Operating income
|
122
|
|
|
158
|
|
||
Interest expense, net
|
30
|
|
|
30
|
|
||
Other nonoperating (expense) income
|
(2
|
)
|
|
2
|
|
||
Income before income taxes
|
90
|
|
|
130
|
|
||
Income tax expense
|
24
|
|
|
34
|
|
||
Net income
|
$
|
66
|
|
|
$
|
96
|
|
Basic earnings per share
|
$
|
0.29
|
|
|
$
|
0.41
|
|
Diluted earnings per share
|
$
|
0.29
|
|
|
$
|
0.40
|
|
Dividends declared per share
|
$
|
0.30
|
|
|
$
|
0.28
|
|
Basic weighted average shares outstanding
|
228
|
|
|
235
|
|
||
Diluted weighted average shares outstanding
|
232
|
|
|
240
|
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Net income
|
$
|
66
|
|
|
$
|
96
|
|
Components of other comprehensive income (loss):
|
|
|
|
||||
Currency translations
|
|
|
|
||||
Pretax activity, net
|
64
|
|
|
(279
|
)
|
||
Tax effect
|
—
|
|
|
—
|
|
||
Currency translations, net of tax
|
64
|
|
|
(279
|
)
|
||
Net investment hedges
|
|
|
|
||||
Pretax activity, net
|
(186
|
)
|
|
152
|
|
||
Tax effect
|
65
|
|
|
(53
|
)
|
||
Net investment hedges, net of tax
|
(121
|
)
|
|
99
|
|
||
Cash flow hedges
|
|
|
|
||||
Pretax activity, net
|
14
|
|
|
(2
|
)
|
||
Tax effect
|
(2
|
)
|
|
—
|
|
||
Cash flow hedges, net of tax
|
12
|
|
|
(2
|
)
|
||
Pension plan adjustments
|
|
|
|
||||
Pretax activity, net
|
7
|
|
|
7
|
|
||
Tax effect
|
(1
|
)
|
|
(2
|
)
|
||
Pension plan adjustments, net of tax
|
6
|
|
|
5
|
|
||
Other comprehensive loss, net of tax
|
(39
|
)
|
|
(177
|
)
|
||
Comprehensive income (loss)
|
$
|
27
|
|
|
$
|
(81
|
)
|
|
April 1,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
279
|
|
|
$
|
170
|
|
Trade accounts receivable, less allowances of $16 and $16, respectively
|
1,352
|
|
|
1,314
|
|
||
Amounts receivable from The Coca-Cola Company
|
72
|
|
|
56
|
|
||
Inventories
|
371
|
|
|
336
|
|
||
Other current assets
|
220
|
|
|
170
|
|
||
Total current assets
|
2,294
|
|
|
2,046
|
|
||
Property, plant, and equipment, net
|
2,000
|
|
|
1,920
|
|
||
Franchise license intangible assets, net
|
3,384
|
|
|
3,383
|
|
||
Goodwill
|
93
|
|
|
88
|
|
||
Other noncurrent assets
|
235
|
|
|
159
|
|
||
Total assets
|
$
|
8,006
|
|
|
$
|
7,596
|
|
LIABILITIES
|
|
|
|
||||
Current:
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
1,766
|
|
|
$
|
1,601
|
|
Amounts payable to The Coca-Cola Company
|
107
|
|
|
102
|
|
||
Current portion of debt
|
577
|
|
|
454
|
|
||
Total current liabilities
|
2,450
|
|
|
2,157
|
|
||
Debt, less current portion
|
3,518
|
|
|
3,392
|
|
||
Other noncurrent liabilities
|
235
|
|
|
236
|
|
||
Noncurrent deferred income tax liabilities
|
866
|
|
|
854
|
|
||
Total liabilities
|
7,069
|
|
|
6,639
|
|
||
SHAREOWNERS’ EQUITY
|
|
|
|
||||
Common stock, $0.01 par value – Authorized – 1,000,000,000 shares;
Issued – 356,817,902 and 356,214,139 shares, respectively |
4
|
|
|
4
|
|
||
Additional paid-in capital
|
4,053
|
|
|
4,032
|
|
||
Reinvested earnings
|
2,327
|
|
|
2,329
|
|
||
Accumulated other comprehensive income
|
(1,036
|
)
|
|
(997
|
)
|
||
Common stock in treasury, at cost – 128,879,388 and 128,878,376 shares, respectively
|
(4,411
|
)
|
|
(4,411
|
)
|
||
Total shareowners’ equity
|
937
|
|
|
957
|
|
||
Total liabilities and shareowners’ equity
|
$
|
8,006
|
|
|
$
|
7,596
|
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
66
|
|
|
$
|
96
|
|
Adjustments to reconcile net income to net cash derived from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
66
|
|
|
71
|
|
||
Share-based compensation expense
|
9
|
|
|
8
|
|
||
Deferred income tax benefit
|
(17
|
)
|
|
(9
|
)
|
||
Pension expense less than contributions
|
(3
|
)
|
|
(5
|
)
|
||
Net changes in assets and liabilities
|
2
|
|
|
(3
|
)
|
||
Net cash derived from operating activities
|
123
|
|
|
158
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital asset investments
|
(87
|
)
|
|
(98
|
)
|
||
Other investing activities, net
|
—
|
|
|
(9
|
)
|
||
Net cash used in investing activities
|
(87
|
)
|
|
(107
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Net change in commercial paper
|
122
|
|
|
(109
|
)
|
||
Issuances of debt
|
—
|
|
|
527
|
|
||
Payments on debt
|
(1
|
)
|
|
(3
|
)
|
||
Shares repurchased under share repurchase programs
|
—
|
|
|
(313
|
)
|
||
Dividend payments on common stock
|
(68
|
)
|
|
(65
|
)
|
||
Exercise of employee share options
|
9
|
|
|
10
|
|
||
Other financing activities, net
|
3
|
|
|
—
|
|
||
Net cash derived from financing activities
|
65
|
|
|
47
|
|
||
Net effect of currency exchange rate changes on cash and cash equivalents
|
8
|
|
|
(20
|
)
|
||
Net Change in Cash and Cash Equivalents
|
109
|
|
|
78
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
170
|
|
|
223
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
279
|
|
|
$
|
301
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
|||||
2016
|
66
|
|
|
65
|
|
|
65
|
|
|
65
|
|
|
261
|
|
2015
|
67
|
|
|
65
|
|
|
65
|
|
|
64
|
|
|
261
|
|
Change
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
•
|
The parties agreed to combine their respective businesses by combining CCE, CCIP, and CCEG. The combination (the Merger) will be effected through the contribution of CCIP and CCEG to a newly created entity, Coca-Cola European Partners, plc (CCEP), and the merger of CCE with and into a newly formed indirect U.S. subsidiary of CCEP (MergeCo), with MergeCo continuing as the surviving entity. Upon completion of the Merger, CCEP will consist of businesses involved in the marketing, production, and distribution of beverages in Andorra, Belgium, France, Germany, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, Portugal, Spain, and Sweden.
|
•
|
At the effective time of the Merger, each outstanding share of common stock of CCE will be converted into the right to receive
one
ordinary share of CCEP and a cash payment of
$14.50
. At closing, on a fully diluted basis CCIP and TCCC will own
34 percent
and
18 percent
of CCEP, respectively, with CCE shareowners owning
48 percent
.
|
•
|
Following the Merger, CCEP will directly and indirectly wholly-own all contributed assets and liabilities of CCE, CCIP, and CCEG.
|
•
|
At the time of the Merger, CCEP’s ordinary shares are expected to be listed for trading on the New York Stock Exchange, Euronext Amsterdam Stock Exchange, and Euronext London Stock Exchange. In addition, listings on the Barcelona, Bilbao, Madrid, and Valencia Stock Exchanges for trading through the Spanish Automated Quotation System is being pursued.
|
|
April 1,
2016 |
|
December 31,
2015 |
||||
Finished goods
|
$
|
249
|
|
|
$
|
209
|
|
Raw materials and supplies
|
122
|
|
|
127
|
|
||
Total inventories
|
$
|
371
|
|
|
$
|
336
|
|
|
April 1,
2016 |
|
December 31,
2015 |
||||
Land
|
$
|
133
|
|
|
$
|
131
|
|
Building and improvements
|
917
|
|
|
894
|
|
||
Machinery, equipment, and containers
|
1,270
|
|
|
1,255
|
|
||
Cold-drink equipment
|
1,240
|
|
|
1,186
|
|
||
Vehicle fleet
|
70
|
|
|
66
|
|
||
Furniture, office equipment, and software
|
301
|
|
|
287
|
|
||
Property, plant, and equipment
|
3,931
|
|
|
3,819
|
|
||
Accumulated depreciation and amortization
|
(2,119
|
)
|
|
(2,036
|
)
|
||
|
1,812
|
|
|
1,783
|
|
||
Construction in process
|
188
|
|
|
137
|
|
||
Property, plant, and equipment, net
|
$
|
2,000
|
|
|
$
|
1,920
|
|
|
April 1,
2016 |
|
December 31,
2015 |
||||
Trade accounts payable
|
$
|
528
|
|
|
$
|
486
|
|
Accrued customer marketing costs
|
539
|
|
|
508
|
|
||
Accrued compensation and benefits
|
226
|
|
|
213
|
|
||
Accrued taxes
|
174
|
|
|
162
|
|
||
Accrued deposits
|
54
|
|
|
51
|
|
||
Other accrued expenses
|
245
|
|
|
181
|
|
||
Accounts payable and accrued expenses
|
$
|
1,766
|
|
|
$
|
1,601
|
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Amounts affecting net sales:
|
|
|
|
||||
Fountain syrup and packaged product sales
|
$
|
5
|
|
|
$
|
3
|
|
Amounts affecting cost of sales:
|
|
|
|
||||
Purchases of concentrate, syrup, mineral water, and juice
|
$
|
(438
|
)
|
|
$
|
(481
|
)
|
Purchases of finished products
|
(9
|
)
|
|
(11
|
)
|
||
Marketing support funding earned
|
47
|
|
|
46
|
|
||
Total
|
$
|
(400
|
)
|
|
$
|
(446
|
)
|
(A)
|
Amounts include the gross interest receivable or payable on our cross-currency swap agreements.
|
|
|
April 1, 2016
|
|
December 31, 2015
|
||||
Type
|
|
Notional Amount
|
|
Latest Maturity
|
|
Notional Amount
|
|
Latest Maturity
|
Foreign currency contracts
|
|
USD 709 million
|
|
June 2021
|
|
USD 700 million
|
|
June 2021
|
|
|
Amount of Gain (Loss) Recognized in AOCI on
Derivative Instruments
(A)
|
||||||
|
|
First Quarter
|
||||||
Cash Flow Hedging Instruments
|
|
2016
|
|
2015
|
||||
Foreign currency contracts
|
|
$
|
25
|
|
|
$
|
6
|
|
|
|
|
|
Amount of Gain (Loss) Reclassified from
AOCI into Earnings
(B)
|
||||||
|
|
|
|
First Quarter
|
||||||
Cash Flow Hedging Instruments
|
|
Location - Statements of Income
|
|
2016
|
|
2015
|
||||
Foreign currency contracts
|
|
Cost of sales
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Foreign currency contracts
(C)
|
|
Other nonoperating expense
|
|
13
|
|
|
13
|
|
||
Total
|
|
|
|
$
|
13
|
|
|
$
|
8
|
|
(A)
|
The amount of ineffectiveness associated with these hedging instruments was not material.
|
(B)
|
Over the next 12 months, deferred
gains
totaling
$4 million
are expected to be reclassified from AOCI as the forecasted transactions occur. The amounts will be recorded on our Condensed Consolidated Statements of Income in the expense line item that is consistent with the nature of the underlying hedged item.
|
(C)
|
The
gain (loss)
recognized on these currency contracts is offset by the
gain (loss)
recognized on the remeasurement of the underlying debt instruments; therefore, there is a minimal consolidated net effect in other nonoperating (expense) income on our Condensed Consolidated Statements of Income.
|
|
|
April 1, 2016
|
|
December 31, 2015
|
||||
Type
|
|
Notional Amount
|
|
Latest Maturity
|
|
Notional Amount
|
|
Latest Maturity
|
Foreign currency contracts
|
|
USD 168 million
|
|
April 2016
|
|
USD 210 million
|
|
March 2016
|
Commodity contracts
|
|
USD 119 million
|
|
December 2020
|
|
USD 137 million
|
|
December 2020
|
|
|
|
|
First Quarter
|
||||||
Non-Designated Hedging Instruments
|
|
Location - Statements of Income
|
|
2016
|
|
2015
|
||||
Commodity contracts
|
|
Cost of sales
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
Commodity contracts
|
|
Selling, delivery, and administrative expenses
|
|
(3
|
)
|
|
—
|
|
||
Foreign currency contracts
|
|
Other nonoperating expense
(A)
|
|
22
|
|
|
14
|
|
||
Total
|
|
|
|
$
|
18
|
|
|
$
|
15
|
|
(A)
|
The
gain (loss)
recognized on these currency contracts is offset by the
gain (loss)
recognized on the remeasurement of the underlying hedged items; therefore, there is a minimal consolidated net effect in other nonoperating (expense) income on our Condensed Consolidated Statements of Income.
|
Gains (Losses) Deferred at Corporate Segment
(A)
|
|
Cost of Sales
|
|
SD&A
|
|
Total
|
||||||
Balance at December 31, 2015
|
|
$
|
(18
|
)
|
|
$
|
(20
|
)
|
|
$
|
(38
|
)
|
Amounts recognized during the period and recorded in our Corporate segment, net
|
|
(1
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|||
Amounts transferred from our Corporate segment to our Europe operating segment, net
|
|
3
|
|
|
4
|
|
|
7
|
|
|||
Balance at April 1, 2016
|
|
$
|
(16
|
)
|
|
$
|
(19
|
)
|
|
$
|
(35
|
)
|
(A)
|
Over the next 12 months, deferred
losses
totaling
$23 million
are expected to be reclassified from our Corporate segment earnings into the earnings of our Europe operating segment as the underlying hedged transactions occur.
|
|
|
April 1, 2016
|
|
December 31, 2015
|
||||
Type
|
|
Notional Amount
|
|
Latest Maturity
|
|
Notional Amount
|
|
Latest Maturity
|
Foreign currency contracts
|
|
USD 1.7 billion
|
|
August 2016
|
|
USD 1.7 billion
|
|
August 2016
|
Foreign currency denominated debt
|
|
USD 2.1 billion
|
|
March 2030
|
|
USD 2.0 billion
|
|
March 2030
|
|
|
Amount of Gain (Loss) Recognized in AOCI on
Derivative Instruments
(A)
|
||||||
|
|
First Quarter
|
||||||
Net Investment Hedging Instruments
|
|
2016
|
|
2015
|
||||
Foreign currency contracts
|
|
$
|
(54
|
)
|
|
$
|
17
|
|
Foreign currency denominated debt
|
|
(67
|
)
|
|
82
|
|
||
Total
|
|
$
|
(121
|
)
|
|
$
|
99
|
|
(A)
|
The amount of ineffectiveness associated with these hedging instruments was not material.
|
|
April 1, 2016
|
|
December 31, 2015
|
||||||||||
|
Principal
Balance
|
|
Rates
(A)
|
|
Principal Balance
(D)
|
|
Rates
(A)
|
||||||
U.S. dollar commercial paper
|
$
|
320
|
|
|
0.6
|
%
|
|
$
|
198
|
|
|
0.6
|
%
|
U.S. dollar notes due 2016-2021
|
1,316
|
|
|
3.4
|
|
|
1,316
|
|
|
3.4
|
|
||
Euro notes due 2017-2030
|
2,439
|
|
|
2.4
|
|
|
2,315
|
|
|
2.4
|
|
||
Capital lease obligations
(B)
|
20
|
|
|
n/a
|
|
|
17
|
|
|
n/a
|
|
||
Total debt
(C)
|
4,095
|
|
|
|
|
3,846
|
|
|
|
||||
Current portion of debt
|
(577
|
)
|
|
|
|
(454
|
)
|
|
|
||||
Debt, less current portion
|
$
|
3,518
|
|
|
|
|
$
|
3,392
|
|
|
|
(A)
|
These rates represent the weighted average interest rates or effective interest rates on the balances outstanding, as adjusted for the effects of interest rate swap agreements, if applicable.
|
(B)
|
These amounts represent the present value of our minimum capital lease payments.
|
(C)
|
The total fair value of our outstanding debt, excluding capital lease obligations, was
$4.3 billion
and
$3.9 billion
at
April 1, 2016
and
December 31, 2015
, respectively. The fair value of our debt is determined using quoted market prices for publicly traded instruments (Level 1).
|
(D)
|
The adoption of ASU 2015-03 on January 1, 2016 resulted in the reclassification unamortized debt issuance costs of
$3 million
of the principal balance of our U.S. dollar notes and
$12 million
of the principal balance of our Euro notes from other noncurrent assets to debt, less current portion as of December 31, 2015. For more information on the adoption of this standard, refer to Note 1.
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Components of net periodic benefit costs:
|
|
|
|
||||
Service cost
|
$
|
13
|
|
|
$
|
14
|
|
Interest cost
|
14
|
|
|
13
|
|
||
Expected return on plan assets
|
(24
|
)
|
|
(24
|
)
|
||
Amortization of net prior service cost
|
1
|
|
|
—
|
|
||
Amortization of actuarial loss
|
6
|
|
|
7
|
|
||
Total costs
|
$
|
10
|
|
|
$
|
10
|
|
|
Projected
(A)
2016
|
|
Actual
(A)
2015
|
||||
Total pension contributions
|
$
|
51
|
|
|
$
|
52
|
|
(A)
|
These amounts represent only contributions made by CCE.
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
U.S. federal statutory expense
|
$
|
32
|
|
|
$
|
46
|
|
Taxation of foreign operations, net
(A)
|
(20
|
)
|
|
(26
|
)
|
||
U.S. taxation of foreign earnings, net of tax credits
|
11
|
|
|
12
|
|
||
Nondeductible items
|
1
|
|
|
2
|
|
||
Total provision for income taxes
|
$
|
24
|
|
|
$
|
34
|
|
(A)
|
Our effective tax rate reflects the benefit, net of income tax contingencies, of having all of our operations outside the U.S., all of which are taxed at statutory rates lower than the statutory U.S. rate of
35 percent
, with the benefit of some income being fully or partially exempt from income taxes due to various operating and financing activities.
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Net income
|
$
|
66
|
|
|
$
|
96
|
|
Basic weighted average shares outstanding
|
228
|
|
|
235
|
|
||
Effect of dilutive securities
(A)
|
4
|
|
|
5
|
|
||
Diluted weighted average shares outstanding
|
232
|
|
|
240
|
|
||
Basic earnings per share
|
$
|
0.29
|
|
|
$
|
0.41
|
|
Diluted earnings per share
|
$
|
0.29
|
|
|
$
|
0.40
|
|
(A)
|
Options to purchase
7.5 million
and
7.9 million
shares were outstanding at
April 1, 2016
and
April 3, 2015
, respectively. During the first
quarter
of
2016
and
2015
, options to purchase
0.9 million
and
1.0 million
shares, respectively, were not included in the computation of diluted earnings per share because the effect of including these options in the computation would have been antidilutive. The dilutive impact of the remaining options outstanding in each period was included in the effect of dilutive securities.
|
|
Europe
|
|
Corporate
|
|
Consolidated
|
||||||
First Quarter 2016:
|
|
|
|
|
|
||||||
Net sales
(A)
|
$
|
1,517
|
|
|
$
|
—
|
|
|
$
|
1,517
|
|
Operating income (loss)
(B)(C)
|
162
|
|
|
(40
|
)
|
|
122
|
|
|||
First Quarter 2015:
|
|
|
|
|
|
||||||
Net sales
(A)
|
$
|
1,631
|
|
|
$
|
—
|
|
|
$
|
1,631
|
|
Operating income (loss)
(B)
|
190
|
|
|
(32
|
)
|
|
158
|
|
(A)
|
The following table summarizes the contribution of total net sales by country as a percentage of total net sales for the periods presented:
|
(B)
|
Our Corporate segment earnings include net mark-to-market
gains
on our non-designated commodity hedges totaling
$3 million
for the first
quarter
of
2016
and net mark-to-market
gains
of
$2 million
for the first
quarter
of
2015
. As of
April 1, 2016
, our Corporate segment earnings included net mark-to-market
losses
on non-designated commodity hedges totaling
$35 million
. These amounts will be reclassified into the earnings of our Europe operating segment when the underlying hedged transactions occur. For additional information about our non-designated hedges, refer to Note 7.
|
(C)
|
For the
first
quarter
of
2016
, operating income in our Corporate and Europe segments included Merger related expenses totaling
$11 million
and
$1 million
, respectively. For additional information about the Merger, refer to Note 2.
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Europe
(A)
|
$
|
31
|
|
|
$
|
9
|
|
Corporate
|
—
|
|
|
—
|
|
||
Total
|
$
|
31
|
|
|
$
|
9
|
|
(A)
|
During the first
quarter
of
2016
, we incurred
$31 million
of restructuring costs under our Belgium supply chain optimization project. During the
first
quarter of
2015
, we incurred
$9 million
related to other restructuring activities.
|
|
Severance Pay
and Benefits
|
|
Accelerated
Depreciation
(B)
|
|
Other
|
|
Total
|
||||||||
Balance at January 1, 2016
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Provision
|
29
|
|
|
2
|
|
|
—
|
|
|
31
|
|
||||
Cash payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Noncash items
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Balance at April 1, 2016
(A)
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
(A)
|
Substantially all of the amounts are included in accounts payable and accrued expenses on our Condensed Consolidated Balance Sheets.
|
(B)
|
Accelerated depreciation represents the difference between the depreciation expense of the asset using the original useful life and the depreciation expense of the asset under the reduced useful life due to the restructuring activity.
|
|
|
Currency Translations
|
|
Net Investment Hedges
|
|
Cash Flow Hedges
(A)
|
|
Pension Plan Adjustments
(B)
|
|
Total
|
||||||||||
Balance at January 1, 2015
|
|
$
|
(441
|
)
|
|
$
|
112
|
|
|
$
|
(18
|
)
|
|
$
|
(367
|
)
|
|
$
|
(714
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(337
|
)
|
|
106
|
|
|
(11
|
)
|
|
(85
|
)
|
|
(327
|
)
|
|||||
Amounts reclassified from AOCI
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
44
|
|
|||||
Net change in other comprehensive (loss) income
|
|
(337
|
)
|
|
106
|
|
|
11
|
|
|
(63
|
)
|
|
(283
|
)
|
|||||
Balance at December 31, 2015
|
|
(778
|
)
|
|
218
|
|
|
(7
|
)
|
|
(430
|
)
|
|
(997
|
)
|
|||||
Other comprehensive (loss) income before reclassifications
|
|
64
|
|
|
(121
|
)
|
|
25
|
|
|
—
|
|
|
(32
|
)
|
|||||
Amounts reclassified from AOCI
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
6
|
|
|
(7
|
)
|
|||||
Net change in other comprehensive (loss) income
|
|
64
|
|
|
(121
|
)
|
|
12
|
|
|
6
|
|
|
(39
|
)
|
|||||
Balance at April 1, 2016
|
|
$
|
(714
|
)
|
|
$
|
97
|
|
|
$
|
5
|
|
|
$
|
(424
|
)
|
|
$
|
(1,036
|
)
|
(A)
|
For additional information about our cash flow hedges, refer to Note 7.
|
(B)
|
For additional information about our pension plans, refer to Note 10.
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Number of shares repurchased
|
—
|
|
|
6.9
|
|
||
Weighted average purchase price per share
|
$
|
—
|
|
|
$
|
43.69
|
|
Amount of share repurchases
(A)
|
$
|
—
|
|
|
$
|
300
|
|
(A)
|
Total cash paid in the first
quarter
of
2015
for share repurchases totaled
$313 million
due to the timing of settlement.
|
|
April 1, 2016
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
Derivative assets
(A)
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
70
|
|
|
$
|
—
|
|
Derivative liabilities
(A)
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
December 31, 2015
|
|
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
Derivative assets
(A)
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
—
|
|
Derivative liabilities
(A)
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
—
|
|
(A)
|
We are required to report our derivative instruments at fair value. We calculate our derivative asset and liability values using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of our derivative contracts (including forwards, options, cross-currency swaps, and interest rate swaps) is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, our derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates which are current as of the valuation date. The standard valuation model for our option contracts also includes implied volatility which is specific to individual options and is based on rates quoted from a widely used third-party resource.
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
|
Full
Year |
|||||
2016
|
66
|
|
|
65
|
|
|
65
|
|
|
65
|
|
|
261
|
|
2015
|
67
|
|
|
65
|
|
|
65
|
|
|
64
|
|
|
261
|
|
Change
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
•
|
Charges totaling
$12 million
(
$8 million
net of tax, or
$0.03
per diluted share) related to the pending Merger;
|
•
|
Charges totaling
$31 million
(
$22 million
net of tax, or
$0.10
per diluted share) related to restructuring activities; and
|
•
|
Net mark-to-market
gains
totaling
$3 million
(
$2 million
net of tax, or
$0.01
per diluted share) related to non-designated commodity hedges associated with underlying transactions that relate to a different reporting period.
|
•
|
Charges totaling $9 million ($7 million net of tax, or $0.03 per diluted share) related to our restructuring activities, and
|
•
|
Net mark-to-market gains totaling $2 million ($2 million net of tax, or $0.01 per diluted share) related to non-designated commodity hedges associated with underlying transactions that relate to a different reporting period.
|
•
|
Persistent currency headwinds which decreased our net sales by
3.5 percent
, our operating income by
3.5 percent
, and our diluted earnings per share by
5.0 percent
;
|
•
|
Continued softness in the consumer environment coupled with temporary supply chain challenges in Great Britain, which contributed to a volume decrease of
4.0 percent
;
|
•
|
Favorable cost trends in certain key commodities which drove bottle and can gross margin per case expansion of 2.5 percent; and
|
•
|
An increase in operating expenses related to our ongoing restructuring projects and costs related to the pending Merger, partially offset by the impact of currency exchange rates.
|
|
First Quarter
|
||||
|
2016
|
|
2015
|
||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales
|
63.1
|
|
|
65.2
|
|
Gross profit
|
36.9
|
|
|
34.8
|
|
Selling, delivery, and administrative expenses
|
28.9
|
|
|
25.1
|
|
Operating income
|
8.0
|
|
|
9.7
|
|
Interest expense, net
|
2.0
|
|
|
1.8
|
|
Other nonoperating (expense) income
|
(0.1
|
)
|
|
0.1
|
|
Income before income taxes
|
5.9
|
|
|
8.0
|
|
Income tax expense
|
1.5
|
|
|
2.1
|
|
Net income
|
4.4
|
%
|
|
5.9
|
%
|
|
First Quarter
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Amount
|
|
Percent
of Total
|
|
Amount
|
|
Percent
of Total
|
||||||
Europe
|
$
|
162
|
|
|
133.0
|
%
|
|
$
|
190
|
|
|
120.5
|
%
|
Corporate
|
(40
|
)
|
|
(33.0
|
)
|
|
(32
|
)
|
|
(20.5
|
)
|
||
Consolidated
|
$
|
122
|
|
|
100.0
|
%
|
|
$
|
158
|
|
|
100.0
|
%
|
|
First Quarter 2016
|
|||||
|
Amount
|
|
Change
Percent of Total |
|||
Changes in operating income:
|
|
|
|
|||
Impact of bottle and can price-mix on gross profit
|
$
|
18
|
|
|
11.5
|
%
|
Impact of bottle and can cost-mix on gross profit
|
19
|
|
|
12.0
|
|
|
Impact of bottle and can volume on gross profit
|
(23
|
)
|
|
(14.5
|
)
|
|
Impact of bottle and can selling day shift on gross profit
|
(7
|
)
|
|
(4.5
|
)
|
|
Impact of post-mix, non-trade, and other on gross profit
|
2
|
|
|
1.5
|
|
|
Net mark-to-market losses related to non-designated commodity hedges
|
1
|
|
|
0.5
|
|
|
Net impact of restructuring charges
|
(22
|
)
|
|
(14.0
|
)
|
|
Merger related costs
|
(12
|
)
|
|
(7.5
|
)
|
|
Other selling, delivery, and administrative expenses
|
(7
|
)
|
|
(4.5
|
)
|
|
Currency exchange rate changes
|
(5
|
)
|
|
(3.5
|
)
|
|
Change in operating income
|
$
|
(36
|
)
|
|
(23.0
|
)%
|
|
First Quarter 2016
|
|
Changes in net sales per case:
|
|
|
Bottle and can net price per case
|
—
|
%
|
Bottle and can currency exchange rate changes
|
(3.5
|
)
|
Post-mix, non-trade, and other
|
1.5
|
|
Change in net sales per case
|
(2.0
|
)%
|
|
First Quarter 2016
|
|
Change in volume
|
(5.5
|
)%
|
Impact of selling day shift
(A)
|
1.5
|
|
Change in volume, adjusted for selling day shift
|
(4.0
|
)%
|
(A)
|
Represents the impact of changes in selling days between periods (based upon a standard five-day selling week).
|
|
First Quarter
|
|||||||
|
Change
|
|
2016 Percent of Total
|
|
2015 Percent of Total
|
|||
Coca-Cola trademark
|
(6.5
|
)%
|
|
67.5
|
%
|
|
69.0
|
%
|
Sparkling flavors and energy
|
2.5
|
|
|
17.5
|
|
|
16.5
|
|
Juices, isotonics, and other
|
(2.5
|
)
|
|
11.0
|
|
|
11.0
|
|
Water
|
12.0
|
|
|
4.0
|
|
|
3.5
|
|
Total
|
(4.0
|
)%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
First Quarter
|
|||||||
|
Change
|
|
2016 Percent of Total
|
|
2015 Percent of Total
|
|||
Future consumption
(A)
|
(3.5
|
)%
|
|
65.0
|
%
|
|
65.0
|
%
|
Immediate consumption
(B)
|
(4.5
|
)
|
|
35.0
|
|
|
35.0
|
|
Total
|
(4.0
|
)%
|
|
100.0
|
%
|
|
100.0
|
%
|
(A)
|
Future consumption packages include containers that are typically one liter and greater, purchased by consumers in multi-packs in take-home channels at ambient temperatures, and are intended for consumption in the future.
|
(B)
|
Immediate consumption packages include containers that are typically less than one liter, purchased by consumers as a single bottle or can in cold-drink channels at chilled temperatures, and are intended for consumption shortly after purchase.
|
|
First Quarter
|
|||||||
|
Change
|
|
2016 Percent of Total
|
|
2015 Percent of Total
|
|||
PET (plastic)
|
(3.5
|
)%
|
|
43.5
|
%
|
|
43.5
|
%
|
Cans
|
(5.0
|
)
|
|
40.0
|
|
|
40.5
|
|
Glass and other
|
(3.0
|
)
|
|
16.5
|
|
|
16.0
|
|
Total
|
(4.0
|
)%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
First Quarter 2016
|
|
Changes in cost of sales per case:
|
|
|
Bottle and can ingredient and packaging costs
|
(2.5
|
)%
|
Bottle and can currency exchange rate changes
|
(3.5
|
)
|
Post-mix, non-trade, and other
|
1.0
|
|
Change in cost of sales per case
|
(5.0
|
)%
|
|
First Quarter 2016
|
|||||
|
Amount
|
|
Change
Percent
of Total
|
|||
Changes in SD&A expenses:
|
|
|
|
|||
General and administrative expenses
|
$
|
7
|
|
|
1.5
|
%
|
Selling and marketing expenses
|
1
|
|
|
0.5
|
|
|
Delivery and merchandising expenses
|
(2
|
)
|
|
(0.5
|
)
|
|
Warehousing expenses
|
5
|
|
|
1.0
|
|
|
Depreciation and amortization expenses
|
(4
|
)
|
|
(1.0
|
)
|
|
Net mark-to-market gains related to non-designated commodity hedges
|
2
|
|
|
0.5
|
|
|
Net impact of restructuring charges
|
22
|
|
|
5.5
|
|
|
Merger related costs
|
12
|
|
|
3.0
|
|
|
Currency exchange rate changes
|
(15
|
)
|
|
(3.5
|
)
|
|
Change in SD&A expenses
|
$
|
28
|
|
|
7.0
|
%
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Average outstanding debt balance
|
$
|
3,934
|
|
|
$
|
4,040
|
|
Weighted average cost of debt
|
2.9
|
%
|
|
2.8
|
%
|
||
Fixed-rate debt (% of portfolio)
|
92
|
%
|
|
99
|
%
|
||
Floating-rate debt (% of portfolio)
|
8
|
%
|
|
1
|
%
|
|
First Quarter
|
||||||
|
2016
|
|
2015
|
||||
Supply chain infrastructure improvements
|
$
|
52
|
|
|
$
|
56
|
|
Cold-drink equipment
|
27
|
|
|
32
|
|
||
Information technology
|
8
|
|
|
9
|
|
||
Fleet and other
|
—
|
|
|
1
|
|
||
Total capital asset investments
|
$
|
87
|
|
|
$
|
98
|
|
|
|
|
|
|
|
First Quarter
|
||||||
Issuances of debt
|
|
Maturity Date
|
|
Rate
|
|
2016
|
|
2015
|
||||
€500 million notes
|
|
March 2030
|
|
1.9%
|
|
$
|
—
|
|
|
$
|
527
|
|
Total issuances of debt, excluding commercial paper
|
|
|
|
|
|
—
|
|
|
527
|
|
||
Net issuances of commercial paper
|
|
|
|
|
|
122
|
|
|
—
|
|
||
Total issuances of debt
|
|
|
|
|
|
$
|
122
|
|
|
$
|
527
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
First Quarter
|
||||||
Payments on debt
|
|
Maturity Date
|
|
Rate
|
|
2016
|
|
2015
|
||||
Other payments, net
|
|
—
|
|
—
|
|
(1
|
)
|
|
(3
|
)
|
||
Total payments on debt, excluding commercial paper
|
|
|
|
|
|
(1
|
)
|
|
(3
|
)
|
||
Net payments on commercial paper
|
|
|
|
|
|
—
|
|
|
(109
|
)
|
||
Total payments on debt
|
|
|
|
|
|
$
|
(1
|
)
|
|
$
|
(112
|
)
|
|
|
April 1,
2016 |
|
December 31,
2015 |
|
Change
|
|
Currency Impact
|
|
Change Excluding Currency
|
||||||||||
Trade accounts receivable
|
|
$
|
1,352
|
|
|
$
|
1,314
|
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
16
|
|
Inventories
|
|
371
|
|
|
336
|
|
|
35
|
|
|
9
|
|
|
26
|
|
|||||
Other current assets
|
|
220
|
|
|
170
|
|
|
50
|
|
|
3
|
|
|
47
|
|
|||||
Franchise license intangible assets, net and Goodwill
|
|
3,477
|
|
|
3,471
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|||||
Other noncurrent assets
|
|
235
|
|
|
159
|
|
|
76
|
|
|
18
|
|
|
58
|
|
|||||
Accounts payable and accrued expenses
|
|
1,766
|
|
|
1,601
|
|
|
165
|
|
|
27
|
|
|
138
|
|
|||||
Current portion of debt
|
|
577
|
|
|
454
|
|
|
123
|
|
|
—
|
|
|
123
|
|
|||||
Debt, less current portion
|
|
3,518
|
|
|
3,392
|
|
|
126
|
|
|
123
|
|
|
3
|
|
|||||
Other noncurrent liabilities
|
|
235
|
|
|
236
|
|
|
(1
|
)
|
|
5
|
|
|
(6
|
)
|
|||||
Common stock in treasury, at cost
|
|
4,411
|
|
|
4,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Projected
(A)
2016
|
|
Actual
(A)
2015
|
||||
Total pension contributions
|
$
|
51
|
|
|
$
|
52
|
|
(A)
|
These amounts represent only contributions made by CCE. For additional information about the funded status of our defined benefit pension plans, refer to Note 10 of the Notes to Consolidated Financial Statements in our Form 10-K.
|
Exhibit
Number
|
Description
|
Incorporated by
Reference
or Filed Herewith
|
|
|
|
12
|
Ratio of Earnings to Fixed Charges.
|
Filed herewith.
|
|
|
|
31.1
|
Certification of John F. Brock, Chairman and Chief Executive Officer of Coca-Cola Enterprises, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
|
|
|
31.2
|
Certification of Manik H. Jhangiani, Senior Vice President and Chief Financial Officer of Coca-Cola Enterprises, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
|
|
|
32.1
|
Certification of John F. Brock, Chairman and Chief Executive Officer of Coca-Cola Enterprises, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
|
|
|
32.2
|
Certification of Manik H. Jhangiani, Senior Vice President and Chief Financial Officer of Coca-Cola Enterprises, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
|
|
|
101.INS
|
XBRL Instance Document.
|
Filed herewith.
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
Filed herewith.
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
Filed herewith.
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
Filed herewith.
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
Filed herewith.
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
Filed herewith.
|
|
|
|
|
|
|
COCA-COLA ENTERPRISES, INC.
(Registrant)
|
||
|
|
|
|||
Date:
|
April 28, 2016
|
|
/s/ Manik H. Jhangiani
|
||
|
|
|
Manik H. Jhangiani
|
||
|
|
|
Senior Vice President and Chief Financial Officer
|
||
|
|
|
|
||
|
|
|
|||
Date:
|
April 28, 2016
|
|
/s/ Suzanne D. Patterson
|
||
|
|
|
Suzanne D. Patterson
|
||
|
|
|
Vice President, Controller and Chief Accounting Officer
|
1 Year Coca-Cola European Partners plc Chart |
1 Month Coca-Cola European Partners plc Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions