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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coca Cola Company | NYSE:KO | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.23 | -0.37% | 61.54 | 61.90 | 61.21 | 61.89 | 2,781,639 | 15:57:28 |
|
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 April 21, 2020
|
$0.25 Par Value
|
|
4,294,891,353
|
|
|
|
Page
|
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
Three Months Ended March 27, 2020 and March 29, 2019
|
|
|
|
|
|
Three Months Ended March 27, 2020 and March 29, 2019
|
|
|
|
|
|
March 27, 2020 and December 31, 2019
|
|
|
|
|
|
Three Months Ended March 27, 2020 and March 29, 2019
|
|
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
Three Months Ended
|
|||||
|
March 27,
2020 |
|
March 29,
2019 |
|
||
Net Operating Revenues
|
$
|
8,601
|
|
$
|
8,694
|
|
Cost of goods sold
|
3,371
|
|
3,365
|
|
||
Gross Profit
|
5,230
|
|
5,329
|
|
||
Selling, general and administrative expenses
|
2,648
|
|
2,767
|
|
||
Other operating charges
|
202
|
|
127
|
|
||
Operating Income
|
2,380
|
|
2,435
|
|
||
Interest income
|
112
|
|
133
|
|
||
Interest expense
|
193
|
|
245
|
|
||
Equity income (loss) — net
|
167
|
|
133
|
|
||
Other income (loss) — net
|
544
|
|
(231
|
)
|
||
Income Before Income Taxes
|
3,010
|
|
2,225
|
|
||
Income taxes
|
215
|
|
522
|
|
||
Consolidated Net Income
|
2,795
|
|
1,703
|
|
||
Less: Net income (loss) attributable to noncontrolling interests
|
20
|
|
25
|
|
||
Net Income Attributable to Shareowners of The Coca-Cola Company
|
$
|
2,775
|
|
$
|
1,678
|
|
Basic Net Income Per Share1
|
$
|
0.65
|
|
$
|
0.39
|
|
Diluted Net Income Per Share1
|
$
|
0.64
|
|
$
|
0.39
|
|
Average Shares Outstanding
|
4,289
|
|
4,271
|
|
||
Effect of dilutive securities
|
36
|
|
35
|
|
||
Average Shares Outstanding Assuming Dilution
|
4,325
|
|
4,306
|
|
|
Three Months Ended
|
|||||
|
March 27,
2020 |
|
March 29,
2019 |
|
||
Consolidated Net Income
|
$
|
2,795
|
|
$
|
1,703
|
|
Other Comprehensive Income:
|
|
|
||||
Net foreign currency translation adjustments
|
(2,621
|
)
|
926
|
|
||
Net gains (losses) on derivatives
|
16
|
|
8
|
|
||
Net change in unrealized gains (losses) on available-for-sale debt securities
|
(8
|
)
|
15
|
|
||
Net change in pension and other benefit liabilities
|
6
|
|
31
|
|
||
Total Comprehensive Income
|
188
|
|
2,683
|
|
||
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
(435
|
)
|
(3
|
)
|
||
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company
|
$
|
623
|
|
$
|
2,686
|
|
|
March 27,
2020 |
|
December 31,
2019 |
|
||
ASSETS
|
||||||
Current Assets
|
|
|
||||
Cash and cash equivalents
|
$
|
13,561
|
|
$
|
6,480
|
|
Short-term investments
|
1,713
|
|
1,467
|
|
||
Total Cash, Cash Equivalents and Short-Term Investments
|
15,274
|
|
7,947
|
|
||
Marketable securities
|
2,392
|
|
3,228
|
|
||
Trade accounts receivable, less allowances of $527 and $524, respectively
|
4,430
|
|
3,971
|
|
||
Inventories
|
3,558
|
|
3,379
|
|
||
Prepaid expenses and other assets
|
2,580
|
|
1,886
|
|
||
Total Current Assets
|
28,234
|
|
20,411
|
|
||
Equity method investments
|
18,020
|
|
19,025
|
|
||
Other investments
|
652
|
|
854
|
|
||
Other assets
|
6,001
|
|
6,075
|
|
||
Deferred income tax assets
|
2,275
|
|
2,412
|
|
||
Property, plant and equipment, less accumulated depreciation of
$8,285 and $8,083, respectively
|
10,993
|
|
10,838
|
|
||
Trademarks with indefinite lives
|
10,457
|
|
9,266
|
|
||
Bottlers' franchise rights with indefinite lives
|
108
|
|
109
|
|
||
Goodwill
|
16,673
|
|
16,764
|
|
||
Other intangible assets
|
600
|
|
627
|
|
||
Total Assets
|
$
|
94,013
|
|
$
|
86,381
|
|
LIABILITIES AND EQUITY
|
||||||
Current Liabilities
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
12,640
|
|
$
|
11,312
|
|
Loans and notes payable
|
13,657
|
|
10,994
|
|
||
Current maturities of long-term debt
|
5,642
|
|
4,253
|
|
||
Accrued income taxes
|
458
|
|
414
|
|
||
Total Current Liabilities
|
32,397
|
|
26,973
|
|
||
Long-term debt
|
31,094
|
|
27,516
|
|
||
Other liabilities
|
8,832
|
|
8,510
|
|
||
Deferred income tax liabilities
|
1,856
|
|
2,284
|
|
||
The Coca-Cola Company Shareowners' Equity
|
|
|
||||
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares
|
1,760
|
|
1,760
|
|
||
Capital surplus
|
17,312
|
|
17,154
|
|
||
Reinvested earnings
|
66,870
|
|
65,855
|
|
||
Accumulated other comprehensive income (loss)
|
(15,696
|
)
|
(13,544
|
)
|
||
Treasury stock, at cost — 2,746 and 2,760 shares, respectively
|
(52,088
|
)
|
(52,244
|
)
|
||
Equity Attributable to Shareowners of The Coca-Cola Company
|
18,158
|
|
18,981
|
|
||
Equity attributable to noncontrolling interests
|
1,676
|
|
2,117
|
|
||
Total Equity
|
19,834
|
|
21,098
|
|
||
Total Liabilities and Equity
|
$
|
94,013
|
|
$
|
86,381
|
|
|
Three Months Ended
|
|||||
|
March 27,
2020 |
|
March 29,
2019 |
|
||
Operating Activities
|
|
|
||||
Consolidated net income
|
$
|
2,795
|
|
$
|
1,703
|
|
Depreciation and amortization
|
367
|
|
275
|
|
||
Stock-based compensation expense
|
(5
|
)
|
40
|
|
||
Deferred income taxes
|
(122
|
)
|
122
|
|
||
Equity (income) loss — net of dividends
|
(157
|
)
|
(120
|
)
|
||
Foreign currency adjustments
|
(59
|
)
|
(39
|
)
|
||
Significant (gains) losses — net
|
(919
|
)
|
87
|
|
||
Other operating charges
|
190
|
|
55
|
|
||
Other items
|
235
|
|
147
|
|
||
Net change in operating assets and liabilities
|
(1,769
|
)
|
(1,482
|
)
|
||
Net Cash Provided by Operating Activities
|
556
|
|
788
|
|
||
Investing Activities
|
|
|
|
|
||
Purchases of investments
|
(1,455
|
)
|
(1,062
|
)
|
||
Proceeds from disposals of investments
|
1,603
|
|
1,994
|
|
||
Acquisitions of businesses, equity method investments and nonmarketable securities
|
(984
|
)
|
(5,322
|
)
|
||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
|
36
|
|
261
|
|
||
Purchases of property, plant and equipment
|
(327
|
)
|
(388
|
)
|
||
Proceeds from disposals of property, plant and equipment
|
91
|
|
27
|
|
||
Other investing activities
|
(48
|
)
|
31
|
|
||
Net Cash Provided by (Used in) Investing Activities
|
(1,084
|
)
|
(4,459
|
)
|
||
Financing Activities
|
|
|
|
|
||
Issuances of debt
|
12,563
|
|
10,256
|
|
||
Payments of debt
|
(4,833
|
)
|
(9,652
|
)
|
||
Issuances of stock
|
413
|
|
190
|
|
||
Purchases of stock for treasury
|
(94
|
)
|
(397
|
)
|
||
Other financing activities
|
(239
|
)
|
24
|
|
||
Net Cash Provided by (Used in) Financing Activities
|
7,810
|
|
421
|
|
||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
|
(54
|
)
|
56
|
|
||
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
|
7,228
|
|
(3,194
|
)
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
|
6,737
|
|
9,318
|
|
||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period
|
13,965
|
|
6,124
|
|
||
Less: Restricted cash and restricted cash equivalents at end of period
|
404
|
|
276
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
13,561
|
|
$
|
5,848
|
|
|
March 27,
2020 |
|
December 31,
2019 |
|
||
Cash and cash equivalents
|
$
|
13,561
|
|
$
|
6,480
|
|
Cash and cash equivalents included in other assets1
|
404
|
|
257
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
13,965
|
|
$
|
6,737
|
|
|
March 29,
2019 |
|
December 31, 2018
|
|
||
Cash and cash equivalents
|
$
|
5,848
|
|
$
|
9,077
|
|
Cash and cash equivalents included in other assets1
|
276
|
|
241
|
|
||
Cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
6,124
|
|
$
|
9,318
|
|
|
United States
|
|
International
|
|
Total
|
|
|||
Three Months Ended March 27, 2020
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
1,324
|
|
$
|
3,465
|
|
$
|
4,789
|
|
Finished product operations
|
1,483
|
|
2,329
|
|
3,812
|
|
|||
Total
|
$
|
2,807
|
|
$
|
5,794
|
|
$
|
8,601
|
|
Three Months Ended March 29, 2019
|
|
|
|
|
|
|
|||
Concentrate operations
|
$
|
1,185
|
|
$
|
3,593
|
|
$
|
4,778
|
|
Finished product operations
|
1,460
|
|
2,456
|
|
3,916
|
|
|||
Total
|
$
|
2,645
|
|
$
|
6,049
|
|
$
|
8,694
|
|
|
Fair Value with Changes Recognized in Income
|
|
Measurement Alternative — No Readily Determinable Fair Value
|
|
||
March 27, 2020
|
|
|
||||
Marketable securities
|
$
|
275
|
|
$
|
—
|
|
Other investments
|
599
|
|
53
|
|
||
Other assets
|
889
|
|
—
|
|
||
Total equity securities
|
$
|
1,763
|
|
$
|
53
|
|
December 31, 2019
|
|
|
||||
Marketable securities
|
$
|
329
|
|
$
|
—
|
|
Other investments
|
772
|
|
82
|
|
||
Other assets
|
1,118
|
|
—
|
|
||
Total equity securities
|
$
|
2,219
|
|
$
|
82
|
|
|
Three Months Ended
|
|||||
|
March 27, 2020
|
|
March 29, 2019
|
|
||
Net gains (losses) recognized during the period related to equity securities
|
$
|
(396
|
)
|
$
|
147
|
|
Less: Net gains (losses) recognized during the period related to equity securities sold
during the period |
(16
|
)
|
7
|
|
||
Net unrealized gains (losses) recognized during the period related to equity securities
still held at the end of the period
|
$
|
(380
|
)
|
$
|
140
|
|
|
|
Gross Unrealized
|
Estimated Fair Value
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
||||||
March 27, 2020
|
|
|
|
|
||||||||
Trading securities
|
$
|
33
|
|
$
|
—
|
|
$
|
(2
|
)
|
$
|
31
|
|
Available-for-sale securities
|
2,365
|
|
98
|
|
(4
|
)
|
2,459
|
|
||||
Total debt securities
|
$
|
2,398
|
|
$
|
98
|
|
$
|
(6
|
)
|
$
|
2,490
|
|
December 31, 2019
|
|
|
|
|
||||||||
Trading securities
|
$
|
46
|
|
$
|
1
|
|
$
|
—
|
|
$
|
47
|
|
Available-for-sale securities
|
3,172
|
|
113
|
|
(4
|
)
|
3,281
|
|
||||
Total debt securities
|
$
|
3,218
|
|
$
|
114
|
|
$
|
(4
|
)
|
$
|
3,328
|
|
|
March 27, 2020
|
|
December 31, 2019
|
||||||||||
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
|
Trading Securities
|
|
Available-for-Sale Securities
|
|
||||
Cash and cash equivalents
|
$
|
—
|
|
$
|
97
|
|
|
$
|
—
|
|
$
|
123
|
|
Marketable securities
|
31
|
|
2,086
|
|
|
47
|
|
2,852
|
|
||||
Other assets
|
—
|
|
276
|
|
|
—
|
|
306
|
|
||||
Total debt securities
|
$
|
31
|
|
$
|
2,459
|
|
|
$
|
47
|
|
$
|
3,281
|
|
|
Cost
|
|
Estimated
Fair Value |
|
||
Within 1 year
|
$
|
1,374
|
|
$
|
1,393
|
|
After 1 year through 5 years
|
761
|
|
805
|
|
||
After 5 years through 10 years
|
58
|
|
68
|
|
||
After 10 years
|
172
|
|
193
|
|
||
Total
|
$
|
2,365
|
|
$
|
2,459
|
|
|
Three Months Ended
|
|||||
|
March 27, 2020
|
|
March 29, 2019
|
|
||
Gross gains
|
$
|
8
|
|
$
|
5
|
|
Gross losses
|
(2
|
)
|
(3
|
)
|
||
Proceeds
|
906
|
|
722
|
|
|
March 27,
2020 |
|
December 31,
2019 |
|
||
Raw materials and packaging
|
$
|
2,282
|
|
$
|
2,180
|
|
Finished goods
|
901
|
|
851
|
|
||
Other
|
375
|
|
348
|
|
||
Total inventories
|
$
|
3,558
|
|
$
|
3,379
|
|
|
|
Fair Value1,2
|
|||||
Derivatives Designated as Hedging Instruments
|
Balance Sheet Location1
|
March 27,
2020 |
|
December 31, 2019
|
|
||
Assets:
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
$
|
140
|
|
$
|
24
|
|
Foreign currency contracts
|
Other assets
|
228
|
|
91
|
|
||
Interest rate contracts
|
Prepaid expenses and other assets
|
12
|
|
10
|
|
||
Interest rate contracts
|
Other assets
|
517
|
|
427
|
|
||
Total assets
|
|
$
|
897
|
|
$
|
552
|
|
Liabilities:
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
$
|
84
|
|
$
|
40
|
|
Foreign currency contracts
|
Other liabilities
|
231
|
|
48
|
|
||
Interest rate contracts
|
Other liabilities
|
23
|
|
21
|
|
||
Total liabilities
|
|
$
|
338
|
|
$
|
109
|
|
|
|
Fair Value1,2
|
|||||
Derivatives Not Designated as Hedging Instruments
|
Balance Sheet Location1
|
March 27,
2020 |
|
December 31, 2019
|
|
||
Assets:
|
|
|
|
||||
Foreign currency contracts
|
Prepaid expenses and other assets
|
$
|
88
|
|
$
|
13
|
|
Foreign currency contracts
|
Other assets
|
2
|
|
—
|
|
||
Commodity contracts
|
Prepaid expenses and other assets
|
1
|
|
8
|
|
||
Commodity contracts
|
Other assets
|
—
|
|
2
|
|
||
Other derivative instruments
|
Prepaid expenses and other assets
|
—
|
|
12
|
|
||
Other derivative instruments
|
Other assets
|
1
|
|
1
|
|
||
Total assets
|
|
$
|
92
|
|
$
|
36
|
|
Liabilities:
|
|
|
|
||||
Foreign currency contracts
|
Accounts payable and accrued expenses
|
$
|
130
|
|
$
|
39
|
|
Foreign currency contracts
|
Other liabilities
|
4
|
|
—
|
|
||
Commodity contracts
|
Accounts payable and accrued expenses
|
70
|
|
13
|
|
||
Commodity contracts
|
Other liabilities
|
28
|
|
1
|
|
||
Other derivative instruments
|
Accounts payable and accrued expenses
|
44
|
|
—
|
|
||
Total liabilities
|
|
$
|
276
|
|
$
|
53
|
|
|
Gain (Loss)
Recognized in OCI
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss) Reclassified from AOCI into Income
|
||||
Three Months Ended March 27, 2020
|
|
|
|
||||
Foreign currency contracts
|
$
|
103
|
|
Net operating revenues
|
$
|
(4
|
)
|
Foreign currency contracts
|
11
|
|
Cost of goods sold
|
1
|
|
||
Foreign currency contracts
|
—
|
|
Interest expense
|
(2
|
)
|
||
Foreign currency contracts
|
(90
|
)
|
Other income (loss) — net
|
15
|
|
||
Interest rate contracts
|
8
|
|
Interest expense
|
(11
|
)
|
||
Total
|
$
|
32
|
|
|
$
|
(1
|
)
|
Three Months Ended March 29, 2019
|
|
|
|
||||
Foreign currency contracts
|
$
|
(2
|
)
|
Net operating revenues
|
$
|
6
|
|
Foreign currency contracts
|
1
|
|
Cost of goods sold
|
4
|
|
||
Foreign currency contracts
|
—
|
|
Interest expense
|
(2
|
)
|
||
Foreign currency contracts
|
(22
|
)
|
Other income (loss) — net
|
(50
|
)
|
||
Interest rate contracts
|
—
|
|
Interest expense
|
(10
|
)
|
||
Total
|
$
|
(23
|
)
|
|
$
|
(52
|
)
|
Hedging Instruments and Hedged Items
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Three Months Ended
|
|||||||
March 27,
2020 |
|
March 29,
2019 |
|
||||
Interest rate contracts
|
Interest expense
|
$
|
112
|
|
$
|
212
|
|
Fixed-rate debt
|
Interest expense
|
(103
|
)
|
(210
|
)
|
||
Net impact to interest expense
|
|
$
|
9
|
|
$
|
2
|
|
Net impact of fair value hedging instruments
|
|
$
|
9
|
|
$
|
2
|
|
|
Carrying Value of Hedged Items
|
|
Cumulative Amount of Fair Value Hedging Adjustments Included in Carrying Value of Hedged Items1
|
||||||||||
Balance Sheet Location of Hedged Items
|
March 27,
2020 |
|
December 31,
2019 |
|
|
March 27,
2020 |
|
December 31,
2019 |
|
||||
Current maturities of long-term debt
|
$
|
1,007
|
|
$
|
1,004
|
|
|
$
|
8
|
|
$
|
5
|
|
Long-term debt
|
12,123
|
|
12,087
|
|
|
539
|
|
448
|
|
|
Notional Amount
|
|
Gain (Loss) Recognized in OCI
|
||||||||||
|
as of
|
|
Three Months Ended
|
||||||||||
|
March 27,
2020 |
|
December 31, 2019
|
|
|
March 27,
2020 |
|
March 29,
2019 |
|
||||
Foreign currency contracts
|
$
|
491
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
$
|
22
|
|
Foreign currency denominated debt
|
12,255
|
|
12,334
|
|
|
79
|
|
131
|
|
||||
Total
|
$
|
12,746
|
|
$
|
12,334
|
|
|
$
|
76
|
|
$
|
153
|
|
Derivatives Not Designated as Hedging Instruments
|
Location of Gain (Loss) Recognized in Income
|
Gain (Loss)
Recognized in Income
|
|||||
Three Months Ended
|
|||||||
March 27,
2020 |
|
March 29,
2019 |
|
||||
Foreign currency contracts
|
Net operating revenues
|
$
|
24
|
|
$
|
(11
|
)
|
Foreign currency contracts
|
Cost of goods sold
|
14
|
|
(1
|
)
|
||
Foreign currency contracts
|
Other income (loss) — net
|
(91
|
)
|
21
|
|
||
Commodity contracts
|
Cost of goods sold
|
(85
|
)
|
20
|
|
||
Other derivative instruments
|
Selling, general and administrative expenses
|
(56
|
)
|
17
|
|
||
Other derivative instruments
|
Other income (loss) — net
|
(57
|
)
|
34
|
|
||
Total
|
|
$
|
(251
|
)
|
$
|
80
|
|
•
|
$1,000 million total principal amount of notes due March 25, 2025, at a fixed interest rate of 2.950 percent;
|
•
|
$1,000 million total principal amount of notes due March 25, 2027, at a fixed interest rate of 3.375 percent;
|
•
|
$1,250 million total principal amount of notes due March 25, 2030, at a fixed interest rate of 3.450 percent;
|
•
|
$500 million total principal amount of notes due March 25, 2040, at a fixed interest rate of 4.125 percent; and
|
•
|
$1,250 million total principal amount of notes due March 25, 2050, at a fixed interest rate of 4.200 percent.
|
|
March 27,
2020 |
|
|
December 31, 2019
|
|
||
Foreign currency translation adjustments
|
$
|
(13,436
|
)
|
|
$
|
(11,270
|
)
|
Accumulated derivative net gains (losses)
|
(193
|
)
|
|
(209
|
)
|
||
Unrealized net gains (losses) on available-for-sale debt securities
|
67
|
|
|
75
|
|
||
Adjustments to pension and other benefit liabilities
|
(2,134
|
)
|
|
(2,140
|
)
|
||
Accumulated other comprehensive income (loss)
|
$
|
(15,696
|
)
|
|
$
|
(13,544
|
)
|
|
Three Months Ended March 27, 2020
|
||||||||
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total
|
|
|||
Consolidated net income
|
$
|
2,775
|
|
$
|
20
|
|
$
|
2,795
|
|
Other comprehensive income:
|
|
|
|
||||||
Net foreign currency translation adjustments
|
(2,166
|
)
|
(455
|
)
|
(2,621
|
)
|
|||
Net gains (losses) on derivatives1
|
16
|
|
—
|
|
16
|
|
|||
Net change in unrealized gains (losses) on available-for-sale debt
securities2
|
(8
|
)
|
—
|
|
(8
|
)
|
|||
Net change in pension and other benefit liabilities
|
6
|
|
—
|
|
6
|
|
|||
Total comprehensive income (loss)
|
$
|
623
|
|
$
|
(435
|
)
|
$
|
188
|
|
Three Months Ended March 27, 2020
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
(2,281
|
)
|
|
$
|
212
|
|
|
$
|
(2,069
|
)
|
Reclassification adjustments recognized in net income
|
3
|
|
|
—
|
|
|
3
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
76
|
|
|
(19
|
)
|
|
57
|
|
|||
Net foreign currency translation adjustments
|
$
|
(2,359
|
)
|
|
$
|
193
|
|
|
$
|
(2,166
|
)
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
23
|
|
|
$
|
(8
|
)
|
|
$
|
15
|
|
Reclassification adjustments recognized in net income
|
1
|
|
|
—
|
|
|
1
|
|
|||
Net gains (losses) on derivatives1
|
$
|
24
|
|
|
$
|
(8
|
)
|
|
$
|
16
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
(8
|
)
|
|
$
|
5
|
|
|
$
|
(3
|
)
|
Reclassification adjustments recognized in net income
|
(6
|
)
|
|
1
|
|
|
(5
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
(14
|
)
|
|
$
|
6
|
|
|
$
|
(8
|
)
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
(25
|
)
|
|
$
|
(1
|
)
|
|
$
|
(26
|
)
|
Reclassification adjustments recognized in net income
|
43
|
|
|
(11
|
)
|
|
32
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
18
|
|
|
$
|
(12
|
)
|
|
$
|
6
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$
|
(2,331
|
)
|
|
$
|
179
|
|
|
$
|
(2,152
|
)
|
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 March 29, 2019
|
Before-Tax Amount
|
|
|
Income Tax
|
|
|
After-Tax Amount
|
|
|||
Foreign currency translation adjustments:
|
|
|
|
|
|
||||||
Translation adjustments arising during the period
|
$
|
997
|
|
|
$
|
(73
|
)
|
|
$
|
924
|
|
Reclassification adjustments recognized in net income
|
192
|
|
|
—
|
|
|
192
|
|
|||
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(287
|
)
|
|
—
|
|
|
(287
|
)
|
|||
Gains (losses) on net investment hedges arising during the period1
|
153
|
|
|
(28
|
)
|
|
125
|
|
|||
Net foreign currency translation adjustments
|
$
|
1,055
|
|
|
$
|
(101
|
)
|
|
$
|
954
|
|
Derivatives:
|
|
|
|
|
|
||||||
Gains (losses) arising during the period
|
$
|
(36
|
)
|
|
$
|
4
|
|
|
$
|
(32
|
)
|
Reclassification adjustments recognized in net income
|
53
|
|
|
(13
|
)
|
|
40
|
|
|||
Net gains (losses) on derivatives1
|
$
|
17
|
|
|
$
|
(9
|
)
|
|
$
|
8
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||||
Unrealized gains (losses) arising during the period
|
$
|
24
|
|
|
$
|
(7
|
)
|
|
$
|
17
|
|
Reclassification adjustments recognized in net income
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$
|
22
|
|
|
$
|
(7
|
)
|
|
$
|
15
|
|
Pension and other benefit liabilities:
|
|
|
|
|
|
||||||
Net pension and other benefit liabilities arising during the period
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
3
|
|
Reclassification adjustments recognized in net income
|
37
|
|
|
(9
|
)
|
|
28
|
|
|||
Net change in pension and other benefit liabilities
|
$
|
36
|
|
|
$
|
(5
|
)
|
|
$
|
31
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$
|
1,130
|
|
|
$
|
(122
|
)
|
|
$
|
1,008
|
|
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 March 27, 2020
|
||
Foreign currency translation adjustments:
|
|
|
||
Divestitures, deconsolidations and other1
|
Other income (loss) — net
|
$
|
3
|
|
|
Income before income taxes
|
3
|
|
|
|
Income taxes
|
—
|
|
|
|
Consolidated net income
|
$
|
3
|
|
Derivatives:
|
|
|
||
Foreign currency contracts
|
Net operating revenues
|
$
|
4
|
|
Foreign currency contracts
|
Cost of goods sold
|
(1
|
)
|
|
Foreign currency contracts
|
Other income (loss) — net
|
(15
|
)
|
|
Foreign currency and interest rate contracts
|
Interest expense
|
13
|
|
|
|
Income before income taxes
|
1
|
|
|
|
Income taxes
|
—
|
|
|
|
Consolidated net income
|
$
|
1
|
|
Available-for-sale debt securities:
|
|
|
||
Sale of debt securities
|
Other income (loss) — net
|
$
|
(6
|
)
|
|
Income before income taxes
|
(6
|
)
|
|
|
Income taxes
|
1
|
|
|
|
Consolidated net income
|
$
|
(5
|
)
|
Pension and other benefit liabilities:
|
|
|
||
Recognized net actuarial loss
|
Other income (loss) — net
|
$
|
44
|
|
Recognized prior service cost (credit)
|
Other income (loss) — net
|
(1
|
)
|
|
|
Income before income taxes
|
43
|
|
|
|
Income taxes
|
(11
|
)
|
|
|
Consolidated net income
|
$
|
32
|
|
1
|
Related to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2.
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|
||||||||||||||||||
Three Months Ended March 27, 2020
|
Common Shares Outstanding
|
|
Total
|
|
Reinvested
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Common
Stock
|
|
Capital
Surplus
|
|
Treasury
Stock
|
|
Non-
controlling
Interests
|
|
|||||||
December 31, 2019
|
4,280
|
|
$
|
21,098
|
|
$
|
65,855
|
|
$
|
(13,544
|
)
|
$
|
1,760
|
|
$
|
17,154
|
|
$
|
(52,244
|
)
|
$
|
2,117
|
|
Comprehensive income (loss)
|
—
|
|
188
|
|
2,775
|
|
(2,152
|
)
|
—
|
|
—
|
|
—
|
|
(435
|
)
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola
Company ($0.41 per share)
|
—
|
|
(1,760
|
)
|
(1,760
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(6
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6
|
)
|
|||||||
Impact related to stock-based
compensation plans
|
14
|
|
314
|
|
—
|
|
—
|
|
—
|
|
158
|
|
156
|
|
—
|
|
|||||||
March 27, 2020
|
4,294
|
|
$
|
19,834
|
|
$
|
66,870
|
|
$
|
(15,696
|
)
|
$
|
1,760
|
|
$
|
17,312
|
|
$
|
(52,088
|
)
|
$
|
1,676
|
|
|
|
|
Shareowners of The Coca-Cola Company
|
|
|
||||||||||||||||||
Three Months Ended March 29, 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 standards
|
—
|
|
(18
|
)
|
501
|
|
(519
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Comprehensive income (loss)
|
—
|
|
2,683
|
|
1,678
|
|
1,008
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
|||||||
Dividends paid/payable to
shareowners of The Coca-Cola
Company ($0.40 per share)
|
—
|
|
(1,709
|
)
|
(1,709
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Dividends paid to noncontrolling
interests
|
—
|
|
(5
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
|||||||
Purchases of treasury stock
|
(9
|
)
|
(398
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(398
|
)
|
—
|
|
|||||||
Impact related to stock-based
compensation plans
|
9
|
|
193
|
|
—
|
|
—
|
|
—
|
|
57
|
|
136
|
|
—
|
|
|||||||
March 29, 2019
|
4,268
|
|
$
|
19,804
|
|
$
|
63,704
|
|
$
|
(12,325
|
)
|
$
|
1,760
|
|
$
|
16,577
|
|
$
|
(51,981
|
)
|
$
|
2,069
|
|
|
Accrued Balance
December 31, 2019
|
|
Costs Incurred
|
|
Payments
|
|
Noncash
and Exchange |
|
Accrued Balance
March 27, 2020
|
|
|||||
Severance pay and benefits
|
$
|
58
|
|
$
|
1
|
|
$
|
(7
|
)
|
$
|
(2
|
)
|
$
|
50
|
|
Outside services
|
1
|
|
27
|
|
(27
|
)
|
—
|
|
1
|
|
|||||
Other direct costs
|
7
|
|
11
|
|
(11
|
)
|
(4
|
)
|
3
|
|
|||||
Total
|
$
|
66
|
|
$
|
39
|
|
$
|
(45
|
)
|
$
|
(6
|
)
|
$
|
54
|
|
|
Pension Benefit Plans
|
|
Other Postretirement
Benefit Plans
|
||||||||||
|
Three Months Ended
|
||||||||||||
|
March 27,
2020 |
|
March 29,
2019 |
|
|
March 27,
2020 |
|
March 29,
2019 |
|
||||
Service cost
|
$
|
28
|
|
$
|
26
|
|
|
$
|
3
|
|
$
|
2
|
|
Interest cost
|
59
|
|
72
|
|
|
6
|
|
7
|
|
||||
Expected return on plan assets1
|
(147
|
)
|
(138
|
)
|
|
(4
|
)
|
(3
|
)
|
||||
Amortization of prior service credit
|
—
|
|
(1
|
)
|
|
(1
|
)
|
(1
|
)
|
||||
Amortization of net actuarial loss
|
43
|
|
38
|
|
|
1
|
|
1
|
|
||||
Net periodic benefit cost (income)
|
$
|
(17
|
)
|
$
|
(3
|
)
|
|
$
|
5
|
|
$
|
6
|
|
March 27, 2020
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other3
|
|
Netting
Adjustment
|
|
4
|
Fair Value
Measurements
|
|
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity securities with readily determinable values1
|
$
|
1,457
|
|
$
|
194
|
|
$
|
15
|
|
|
$
|
97
|
|
$
|
—
|
|
|
$
|
1,763
|
|
|
|
Debt securities1
|
—
|
|
2,452
|
|
38
|
|
|
|
—
|
|
—
|
|
|
2,490
|
|
|
||||||
Derivatives2
|
1
|
|
988
|
|
—
|
|
|
—
|
|
(670
|
)
|
5
|
319
|
|
7
|
|||||||
Total assets
|
$
|
1,458
|
|
$
|
3,634
|
|
$
|
53
|
|
|
$
|
97
|
|
$
|
(670
|
)
|
|
$
|
4,572
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Contingent consideration liability
|
$
|
—
|
|
$
|
—
|
|
$
|
(281
|
)
|
8
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(281
|
)
|
|
Derivatives2
|
(42
|
)
|
(572
|
)
|
—
|
|
|
—
|
|
572
|
|
6
|
(42
|
)
|
7
|
|||||||
Total liabilities
|
$
|
(42
|
)
|
$
|
(572
|
)
|
$
|
(281
|
)
|
|
$
|
—
|
|
$
|
572
|
|
|
$
|
(323
|
)
|
|
5
|
The Company is obligated to return $233 million in cash collateral it has netted against its derivative position.
|
6
|
The Company has the right to reclaim $95 million in cash collateral it has netted against its derivative position.
|
December 31, 2019
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
Other3
|
|
Netting
Adjustment
|
|
4
|
Fair Value
Measurements
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities with readily determinable values1
|
$
|
1,877
|
|
$
|
219
|
|
$
|
14
|
|
|
$
|
109
|
|
$
|
—
|
|
|
$
|
2,219
|
|
|
Debt securities1
|
—
|
|
3,291
|
|
37
|
|
|
—
|
|
—
|
|
|
3,328
|
|
|
||||||
Derivatives2
|
9
|
|
579
|
|
—
|
|
|
—
|
|
(392
|
)
|
5
|
196
|
|
6
|
||||||
Total assets
|
$
|
1,886
|
|
$
|
4,089
|
|
$
|
51
|
|
|
$
|
109
|
|
$
|
(392
|
)
|
|
$
|
5,743
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Derivatives2
|
$
|
—
|
|
$
|
(162
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
130
|
|
|
$
|
(32
|
)
|
6
|
Total liabilities
|
$
|
—
|
|
$
|
(162
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
130
|
|
|
$
|
(32
|
)
|
|
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's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $196 million in the line item other assets and $32 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
|
|
||||||
|
March 27,
2020 |
|
|
March 29,
2019 |
|
|
||
Impairment of intangible asset
|
$
|
(152
|
)
|
1
|
$
|
—
|
|
|
Other-than-temporary impairment charges
|
—
|
|
|
(343
|
)
|
3
|
||
Investment in former equity method investee
|
—
|
|
|
(121
|
)
|
4
|
||
Impairment of equity investment without a readily determinable fair value
|
(26
|
)
|
2
|
—
|
|
|
||
Total
|
$
|
(178
|
)
|
|
$
|
(464
|
)
|
|
|
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 March 27, 2020
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
1,573
|
|
|
$
|
930
|
|
$
|
2,849
|
|
$
|
989
|
|
$
|
573
|
|
$
|
1,656
|
|
|
$
|
31
|
|
$
|
—
|
|
$
|
8,601
|
|
Intersegment
|
152
|
|
|
—
|
|
1
|
|
139
|
|
—
|
|
2
|
|
|
—
|
|
(294
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
1,725
|
|
|
930
|
|
2,850
|
|
1,128
|
|
573
|
|
1,658
|
|
|
31
|
|
(294
|
)
|
8,601
|
|
|||||||||
Operating income (loss)
|
960
|
|
|
539
|
|
387
|
|
511
|
|
19
|
|
63
|
|
|
(99
|
)
|
—
|
|
2,380
|
|
|||||||||
Income (loss) before income taxes
|
971
|
|
|
535
|
|
402
|
|
513
|
|
18
|
|
198
|
|
|
373
|
|
—
|
|
3,010
|
|
|||||||||
Identifiable operating assets
|
8,172
|
|
1
|
1,853
|
|
20,600
|
|
2,312
|
|
7,378
|
|
10,184
|
|
1
|
24,842
|
|
—
|
|
75,341
|
|
|||||||||
Investments2
|
498
|
|
|
661
|
|
357
|
|
225
|
|
11
|
|
12,968
|
|
|
3,952
|
|
—
|
|
18,672
|
|
|||||||||
As of and for the Three Months Ended March 29, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Third party
|
$
|
1,634
|
|
|
$
|
896
|
|
$
|
2,681
|
|
$
|
1,060
|
|
$
|
583
|
|
$
|
1,808
|
|
|
$
|
32
|
|
$
|
—
|
|
$
|
8,694
|
|
Intersegment
|
138
|
|
|
—
|
|
2
|
|
127
|
|
2
|
|
2
|
|
|
—
|
|
(271
|
)
|
—
|
|
|||||||||
Total net operating revenues
|
1,772
|
|
|
896
|
|
2,683
|
|
1,187
|
|
585
|
|
1,810
|
|
|
32
|
|
(271
|
)
|
8,694
|
|
|||||||||
Operating income (loss)
|
978
|
|
|
496
|
|
586
|
|
542
|
|
66
|
|
100
|
|
|
(333
|
)
|
—
|
|
2,435
|
|
|||||||||
Income (loss) before income taxes
|
988
|
|
|
491
|
|
537
|
|
550
|
|
68
|
|
(100
|
)
|
|
(309
|
)
|
—
|
|
2,225
|
|
|||||||||
Identifiable operating assets
|
8,379
|
|
1
|
1,838
|
|
18,316
|
|
2,088
|
|
7,350
|
|
10,867
|
|
1
|
19,305
|
|
—
|
|
68,143
|
|
|||||||||
Investments2
|
719
|
|
|
786
|
|
343
|
|
223
|
|
—
|
|
14,360
|
|
|
3,773
|
|
—
|
|
20,204
|
|
|||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Identifiable operating assets
|
$
|
8,143
|
|
1
|
$
|
1,801
|
|
$
|
17,687
|
|
$
|
2,060
|
|
$
|
7,265
|
|
$
|
11,170
|
|
1
|
$
|
18,376
|
|
$
|
—
|
|
$
|
66,502
|
|
Investments2
|
543
|
|
|
716
|
|
358
|
|
224
|
|
14
|
|
14,093
|
|
|
3,931
|
|
—
|
|
19,879
|
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $152 million for North America due to an impairment charge related to a trademark, which was primarily driven by revised projections of future operating results due to reduced availability at retail customer outlets and a change in brand focus in the Company's portfolio. Refer to Note 15.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $39 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 12.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of the remaining interest in fairlife. Refer to Note 2.
|
•
|
Income (loss) before income taxes was increased by $902 million for Corporate in conjunction with our acquisition of the remaining interest in fairlife, which resulted from the remeasurement of our previously held equity interest in fairlife to fair value. Refer to Note 2.
|
•
|
Income (loss) before income taxes was increased by $18 million for Corporate related to the sale of a portion of our ownership interest in one of our equity method investments.
|
•
|
Income (loss) before income taxes was reduced by $392 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4.
|
•
|
Income (loss) before income taxes was reduced by $38 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.
|
•
|
Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, Middle East and Africa, $17 million for North America, $2 million for Bottling Investments and $48 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 12.
|
•
|
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 $11 million for Bottling Investments related to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 11.
|
•
|
Income (loss) before income taxes was increased by $149 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4.
|
•
|
Income (loss) 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.
|
•
|
Income (loss) before income taxes was reduced by $286 million for Bottling Investments due to an other-than-temporary impairment charge related to CCBJHI, an equity method investee. Refer to Note 15.
|
•
|
Income (loss) before income taxes was reduced by $121 million for Corporate resulting from a loss in conjunction with our acquisition of the remaining interest in CHI. Refer to Note 2 and Note 15.
|
•
|
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 15.
|
•
|
Income (loss) before income taxes was reduced by $42 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.
|
•
|
To ensure the health and safety of Coca-Cola system employees
|
•
|
To support and make a difference in the communities we serve
|
•
|
To keep our brands in supply and to maintain the quality and safety of our products
|
•
|
To best serve our customers across all channels as they adapt to the shifting demands of consumers during the crisis
|
•
|
To best position ourselves to emerge strong when this crisis ends
|
|
Percent Change 2020 versus 2019
|
|
||||
|
Three Months Ended March 27, 2020
|
|
||||
|
Unit Cases1,2,3
|
|
Concentrate
Sales4
|
|
|
|
Worldwide
|
(1
|
)%
|
|
—
|
%
|
|
Europe, Middle East & Africa
|
—
|
%
|
|
(1
|
)%
|
|
Latin America
|
—
|
|
|
5
|
|
|
North America
|
3
|
|
|
4
|
|
6
|
Asia Pacific
|
(7
|
)
|
|
1
|
|
7
|
Global Ventures
|
(2
|
)
|
|
(3
|
)
|
|
Bottling Investments
|
(5
|
)
|
5
|
N/A
|
|
5
|
After considering the impact of structural changes, unit case volume for Bottling Investments for the three months ended March 27, 2020 declined 4 percent.
|
|
Percent Change 2020 versus 2019
|
|||||||||
|
Volume1
|
|
Price, Product & Geographic Mix
|
|
Foreign Currency Fluctuations
|
|
Acquisitions & Divestitures2
|
|
Total
|
|
Consolidated
|
—
|
%
|
—
|
%
|
(2
|
)%
|
1
|
%
|
(1
|
)%
|
Europe, Middle East & Africa
|
(1
|
)%
|
—
|
%
|
(3
|
)%
|
1
|
%
|
(3
|
)%
|
Latin America
|
5
|
|
8
|
|
(10
|
)
|
—
|
|
4
|
|
North America
|
3
|
|
1
|
|
—
|
|
2
|
|
6
|
|
Asia Pacific
|
(3
|
)
|
(4
|
)
|
(1
|
)
|
2
|
|
(5
|
)
|
Global Ventures
|
(3
|
)
|
1
|
|
—
|
|
—
|
|
(2
|
)
|
Bottling Investments
|
(4
|
)
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
(8
|
)
|
•
|
Europe, Middle East and Africa — favorable price, product and package mix, offset by negative geographic mix, including the impact of the Brexit inventory build in the prior year;
|
•
|
Latin America — favorable price and package mix in Mexico and the impact of inflationary environments in certain markets;
|
•
|
North America — favorable pricing initiatives, partially offset by unfavorable product mix resulting from strong sales in packaged water;
|
•
|
Asia Pacific — unfavorable channel and product mix across a majority of the business units;
|
•
|
Global Ventures — favorable product mix; and
|
•
|
Bottling Investments — unfavorable product and package mix primarily in our bottling operations in Africa.
|
|
Three Months Ended
|
|||||
|
March 27,
2020 |
|
March 29,
2019 |
|
||
Stock-based compensation expense (income)
|
$
|
(5
|
)
|
$
|
40
|
|
Advertising expenses
|
902
|
|
953
|
|
||
Selling and distribution expenses
|
698
|
|
675
|
|
||
Other operating expenses
|
1,053
|
|
1,099
|
|
||
Selling, general and administrative expenses
|
$
|
2,648
|
|
$
|
2,767
|
|
|
Three Months Ended
|
|||||
|
March 27,
2020 |
|
March 29,
2019 |
|
||
Europe, Middle East & Africa
|
$
|
—
|
|
$
|
1
|
|
Latin America
|
—
|
|
—
|
|
||
North America
|
152
|
|
17
|
|
||
Asia Pacific
|
—
|
|
—
|
|
||
Global Ventures
|
—
|
|
—
|
|
||
Bottling Investments
|
—
|
|
13
|
|
||
Corporate
|
50
|
|
96
|
|
||
Total
|
$
|
202
|
|
$
|
127
|
|
|
Three Months Ended
|
|||
|
March 27,
2020 |
|
March 29,
2019 |
|
Europe, Middle East & Africa
|
40.3
|
%
|
40.1
|
%
|
Latin America
|
22.7
|
|
20.4
|
|
North America
|
16.3
|
|
24.1
|
|
Asia Pacific
|
21.5
|
|
22.3
|
|
Global Ventures
|
0.8
|
|
2.7
|
|
Bottling Investments
|
2.6
|
|
4.1
|
|
Corporate
|
(4.2
|
)
|
(13.7
|
)
|
Total
|
100.0
|
%
|
100.0
|
%
|
|
Three Months Ended
|
|||
|
March 27,
2020 |
|
March 29,
2019 |
|
Consolidated
|
27.7
|
%
|
28.0
|
%
|
Europe, Middle East & Africa
|
61.1
|
%
|
59.8
|
%
|
Latin America
|
58.0
|
|
55.4
|
|
North America
|
13.6
|
|
21.9
|
|
Asia Pacific
|
51.6
|
|
51.2
|
|
Global Ventures
|
3.3
|
|
11.2
|
|
Bottling Investments
|
3.8
|
|
5.5
|
|
Corporate
|
*
|
|
*
|
|
•
|
$1,000 million total principal amount of notes due March 25, 2025, at a fixed interest rate of 2.950 percent;
|
•
|
$1,000 million total principal amount of notes due March 25, 2027, at a fixed interest rate of 3.375 percent;
|
•
|
$1,250 million total principal amount of notes due March 25, 2030, at a fixed interest rate of 3.450 percent;
|
•
|
$500 million total principal amount of notes due March 25, 2040, at a fixed interest rate of 4.125 percent; and
|
•
|
$1,250 million total principal amount of notes due March 25, 2050, at a fixed interest rate of 4.200 percent.
|
•
|
We have experienced a decrease in sales of certain of our products in markets around the world that have been affected by the COVID-19 pandemic. In particular, sales of our products in the away-from-home channels have been significantly negatively affected by shelter-in-place regulations or recommendations, closings of restaurants and cancellations of major sporting and other events. This negative trend is likely to continue, with the most significant impact expected to occur in the second quarter of fiscal year 2020. If the COVID-19 pandemic intensifies and expands geographically, its negative impacts on our sales could be more prolonged and may become more severe. While we have experienced increased sales in the at-home channels since the outbreak from pantry loading as consumers stock up on certain of our products with the expectation of spending more time at home during the crisis, such increased sales levels may not continue in the longer term and will not offset the pressure we are experiencing in the away-from-home channels.
|
•
|
In certain COVID-19 affected markets, consumer demand has shifted away from some of our more profitable beverages and away-from-home consumption to lower-margin products and at-home consumption, and this shift in consumer purchasing patterns is likely to continue while shelter-in-place and social distancing behaviors are mandated or encouraged.
|
•
|
Deteriorating economic and political conditions in many of our major markets affected by the COVID-19 pandemic, such as increased unemployment, decreases in disposable income, declines in consumer confidence, or economic slowdowns or recessions, could cause a further decrease in demand for our products.
|
•
|
We have experienced temporary disruptions in certain of our concentrate production operations. We are taking measures to protect our employees and facilities around the world, which include, but are not limited to, checking the temperature of employees when they enter our facilities, requiring employees to wear masks and other protective clothing as appropriate, and implementing additional cleaning and sanitization routines. These measures may not be sufficient to prevent the spread of COVID-19 among our employees and, therefore, we may face additional concentrate production disruptions in the future, which may place constraints on our ability to supply concentrates to our bottling partners in a timely manner or may increase our concentrate supply costs.
|
•
|
We have faced, and may continue to face, increasing delays in the delivery of concentrates to our bottling partners as a result of shipping delays due to, among other things, additional safety requirements imposed by port authorities, closures of or congestion at ports, and capacity constraints experienced by our transportation contractors.
|
•
|
Some of our bottling partners have experienced, and may experience in the future, temporary plant closures, production slowdowns and disruptions in distribution operations as a result of the impact of the COVID-19 pandemic on their respective businesses.
|
•
|
Disruptions in supply chains may place constraints on our and our bottling partners’ ability to source beverage containers, such as glass bottles and cans, which may increase our and their packaging costs.
|
•
|
We have experienced, and expect to continue to experience, adverse fluctuations in foreign currency exchange rates, particularly an increase in the value of the U.S. dollar against certain key foreign currencies, which negatively affected, and we expect will continue to negatively affect, our reported results of operations and financial condition.
|
•
|
Our borrowing costs have increased as a result of disruptions and increased volatility and pricing in the commercial paper and debt markets caused by the COVID-19 pandemic and, if the current uncertain conditions in the credit markets continue or worsen, our borrowing costs may continue to increase.
|
•
|
The current uncertain credit market conditions and their actual or perceived effects on our and our major bottling partners' results of operations and financial condition, along with the current unfavorable economic environment in the United States and much of the world, may increase the likelihood that one or more of the major independent credit agencies will downgrade our credit ratings, which could have a negative effect on our borrowing costs.
|
•
|
Governmental authorities in the United States and throughout the world may increase or impose new income taxes or indirect taxes, or revise interpretations of existing tax rules and regulations, as a means of financing the costs of stimulus and other measures enacted or taken, or that may be enacted or taken in the future, to protect populations and economies from the impact of the COVID-19 pandemic. Such actions could have an adverse effect on our results of operations and cash flows.
|
•
|
We rely on third-party service providers and business partners, such as cloud data storage and other information technology service providers, suppliers, distributors, contractors, joint venture partners and other external business partners, for certain functions or for services in support of key portions of our operations. These third-party service providers and business partners are subject to risks and uncertainties related to the COVID-19 pandemic, which may interfere with their ability to fulfill their respective commitments and responsibilities to us in a timely manner and in accordance with the agreed-upon terms.
|
•
|
The financial impact of the COVID-19 pandemic may cause one or more of our counterparty financial institutions to fail or default on their obligations to us, which could cause us to incur significant losses.
|
•
|
We may be required to record significant impairment charges with respect to noncurrent assets, including trademarks, bottler franchise rights, goodwill and other intangible assets, equity method investments and other long-lived assets whose fair values may be negatively affected by the effects of the COVID-19 pandemic on our operations. Also, we may be required to write off obsolete inventory and the unamortized balances of advanced funding provided to customers that permanently close as a result of the COVID-19 pandemic’s damaging impacts on their respective businesses. In addition, we are required to record impairment charges related to our proportionate share of impairment charges that may be recorded by equity method investees, and such charges may be significant.
|
•
|
The significant declines in the equity markets and in the valuation of other assets precipitated by the COVID-19 pandemic have negatively affected the values of our pension plan assets. If these negative effects continue and the fair values of our pension plan assets remain lower than pre-pandemic levels, we may incur increased pension expense in future periods.
|
•
|
As a result of the COVID-19 pandemic, including related governmental guidance or directives, we have required most office-based employees, including most employees based at our global headquarters in Atlanta, to work remotely. We may experience reductions in productivity and disruptions to our business routines while our remote work policy remains in place.
|
•
|
Actions we have taken or may take, or decisions we have made or may make, as a consequence of the COVID-19 pandemic may result in legal claims or litigation against us.
|
Period
|
Total Number
of Shares
Purchased1
|
|
Average
Price Paid
Per Share
|
|
Total Number
of Shares
Purchased as
Part of
Publicly
Announced
Plan2
|
|
Maximum
Number of
Shares That May
Yet Be
Purchased Under
Publicly
Announced
Plans3
|
|
|
January 1, 2020 through January 24, 2020
|
37,271
|
|
$
|
54.55
|
|
—
|
|
161,029,667
|
|
January 25, 2020 through February 21, 2020
|
2,715,361
|
|
59.90
|
|
—
|
|
161,029,667
|
|
|
February 22, 2020 through March 27, 2020
|
28,002
|
|
49.09
|
|
—
|
|
161,029,667
|
|
|
Total
|
2,780,634
|
|
$
|
59.72
|
|
—
|
|
|
|
•
|
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.
|
EXHIBIT INDEX
|
|
Exhibit No.
|
|
(With regard to applicable cross-references in the list of exhibits below, the Company's Current, Quarterly and Annual Reports are filed with the Securities and Exchange Commission (the "SEC") under File No. 001-02217; and Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Current, Quarterly and Annual Reports are filed with the SEC under File No. 001-09300).
|
|
4.1
|
Intentionally omitted.
|
4.2
|
As permitted by the rules of the SEC, the Company has not filed certain instruments defining the rights of holders of long-term debt of the Company or consolidated subsidiaries under which the total amount of securities authorized does not exceed 10 percent of the total assets of the Company and its consolidated subsidiaries. The Company agrees to furnish to the SEC, upon request, a copy of any omitted instrument.
|
|
|
THE COCA-COLA COMPANY
(Registrant)
|
|
|
|
|
|
/s/ KATHY LOVELESS
|
Date:
|
April 24, 2020
|
Kathy Loveless
Vice President and Controller
(On behalf of the Registrant)
|
|
|
|
|
|
/s/ MARK RANDAZZA
|
Date:
|
April 24, 2020
|
Mark Randazza
Vice President, Assistant Controller and Chief Accounting Officer
(Principal Accounting Officer)
|
1 Year Coca Cola Chart |
1 Month Coca Cola Chart |
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