Attached files
| file | filename |
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| 8-K - 8-K - COCA COLA CO | form8-k2018operatingsegmen.htm |
Exhibit 99.1
The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment Data and Reclassified Data within Statements of Income
Unaudited
(In millions)
1Q17 | 2Q17 | 3Q17 | 4Q17 | FY17 | FY16 | |||||||||||||||||||
Reported Net Operating Revenues — Third Party | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,632 | $ | 2,037 | $ | 1,959 | $ | 1,704 | $ | 7,332 | $ | 7,014 | ||||||||||||
Latin America | 913 | 935 | 1,009 | 1,099 | 3,956 | 3,746 | ||||||||||||||||||
North America | 1,653 | 2,326 | 2,348 | 2,469 | 8,796 | 6,587 | ||||||||||||||||||
Asia Pacific | 1,078 | 1,384 | 1,345 | 960 | 4,767 | 4,788 | ||||||||||||||||||
Bottling Investments | 3,813 | 2,975 | 2,369 | 1,222 | 10,379 | 19,601 | ||||||||||||||||||
Corporate | 29 | 45 | 48 | 16 | 138 | 127 | ||||||||||||||||||
Consolidated | $ | 9,118 | $ | 9,702 | $ | 9,078 | $ | 7,470 | $ | 35,368 | $ | 41,863 | ||||||||||||
Reported Net Operating Revenues — Intersegment | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | — | $ | — | $ | — | $ | 42 | $ | 42 | $ | 264 | ||||||||||||
Latin America | 13 | 15 | 26 | 19 | 73 | 73 | ||||||||||||||||||
North America | 764 | 577 | 433 | 180 | 1,954 | 3,738 | ||||||||||||||||||
Asia Pacific | 130 | 123 | 87 | 69 | 409 | 506 | ||||||||||||||||||
Bottling Investments | 23 | 23 | 23 | 12 | 81 | 134 | ||||||||||||||||||
Corporate | — | — | — | — | — | 5 | ||||||||||||||||||
Eliminations | (930 | ) | (738 | ) | (569 | ) | (280 | ) | (2,517 | ) | (4,720 | ) | ||||||||||||
Consolidated | $ | — | $ | — | $ | — | $ | 42 | $ | 42 | 1 | $ | — | |||||||||||
Reported Net Operating Revenues — Total | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 1,632 | $ | 2,037 | $ | 1,959 | $ | 1,746 | $ | 7,374 | $ | 7,278 | ||||||||||||
Latin America | 926 | 950 | 1,035 | 1,118 | 4,029 | 3,819 | ||||||||||||||||||
North America | 2,417 | 2,903 | 2,781 | 2,649 | 10,750 | 10,325 | ||||||||||||||||||
Asia Pacific | 1,208 | 1,507 | 1,432 | 1,029 | 5,176 | 5,294 | ||||||||||||||||||
Bottling Investments | 3,836 | 2,998 | 2,392 | 1,234 | 10,460 | 19,735 | ||||||||||||||||||
Corporate | 29 | 45 | 48 | 16 | 138 | 132 | ||||||||||||||||||
Eliminations | (930 | ) | (738 | ) | (569 | ) | (280 | ) | (2,517 | ) | (4,720 | ) | ||||||||||||
Consolidated | $ | 9,118 | $ | 9,702 | $ | 9,078 | $ | 7,512 | $ | 35,410 | $ | 41,863 | ||||||||||||
Comparable Net Operating Revenues — Total (Non-GAAP) | ||||||||||||||||||||||||
North America | $ | 2,422 | $ | 2,906 | $ | 2,769 | $ | 2,643 | $ | 10,740 | $ | 10,307 | ||||||||||||
Bottling Investments | $ | 3,836 | $ | 2,998 | $ | 2,392 | $ | 1,234 | $ | 10,460 | $ | 19,735 | ||||||||||||
Eliminations | $ | (930 | ) | $ | (738 | ) | $ | (569 | ) | $ | (280 | ) | $ | (2,517 | ) | $ | (4,720 | ) | ||||||
Core Business | $ | 6,223 | $ | 7,445 | $ | 7,233 | $ | 6,554 | $ | 27,455 | $ | 26,824 | ||||||||||||
1 | Intersegment revenues do not eliminate on a consolidated basis due to intercompany sales to our discontinued operations. |
1
Exhibit 99.1
The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment Data and Reclassified Data within Statements of Income
Unaudited
(In millions)
1Q17 | 2Q17 | 3Q17 | 4Q17 | FY17 | FY16 | |||||||||||||||||||
Reported Operating Income (Loss) | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 860 | $ | 1,076 | $ | 932 | $ | 757 | $ | 3,625 | $ | 3,668 | ||||||||||||
Latin America | 505 | 559 | 563 | 591 | 2,218 | 1,953 | ||||||||||||||||||
North America | 574 | 755 | 648 | 614 | 2,591 | 2,614 | ||||||||||||||||||
Asia Pacific | 541 | 709 | 573 | 324 | 2,147 | 2,210 | ||||||||||||||||||
Bottling Investments | (89 | ) | (651 | ) | (46 | ) | (176 | ) | (962 | ) | 1 | |||||||||||||
Corporate | (428 | ) | (411 | ) | (425 | ) | (756 | ) | (2,020 | ) | (1,789 | ) | ||||||||||||
Consolidated | $ | 1,963 | $ | 2,037 | $ | 2,245 | $ | 1,354 | $ | 7,599 | $ | 8,657 | ||||||||||||
Comparable Operating Income (Loss) (Non-GAAP) | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 862 | $ | 1,070 | $ | 938 | $ | 781 | $ | 3,651 | $ | 3,700 | ||||||||||||
Latin America | 505 | 560 | 565 | 595 | 2,225 | 2,027 | ||||||||||||||||||
North America | 599 | 799 | 701 | 719 | 2,818 | 2,701 | ||||||||||||||||||
Asia Pacific | 542 | 711 | 574 | 330 | 2,157 | 2,211 | ||||||||||||||||||
Bottling Investments | 48 | 88 | 12 | (11 | ) | 137 | 631 | |||||||||||||||||
Corporate | (304 | ) | (329 | ) | (347 | ) | (468 | ) | (1,448 | ) | (1,420 | ) | ||||||||||||
Consolidated | $ | 2,252 | $ | 2,899 | $ | 2,443 | $ | 1,946 | $ | 9,540 | $ | 9,850 | ||||||||||||
Reported Income (Loss) from Continuing Operations Before Income Taxes | ||||||||||||||||||||||||
Europe, Middle East & Africa | $ | 885 | $ | 1,111 | $ | 962 | $ | 748 | $ | 3,706 | $ | 3,749 | ||||||||||||
Latin America | 507 | 559 | 561 | 584 | 2,211 | 1,966 | ||||||||||||||||||
North America | 477 | 659 | 585 | 599 | 2,320 | 2,592 | ||||||||||||||||||
Asia Pacific | 549 | 716 | 588 | 326 | 2,179 | 2,238 | ||||||||||||||||||
Bottling Investments | (546 | ) | (519 | ) | (675 | ) | (618 | ) | (2,358 | ) | (1,955 | ) | ||||||||||||
Corporate | (365 | ) | 98 | (347 | ) | (702 | ) | (1,316 | ) | (454 | ) | |||||||||||||
Consolidated | $ | 1,507 | $ | 2,624 | $ | 1,674 | $ | 937 | $ | 6,742 | $ | 8,136 | ||||||||||||
Comparable Income (Loss) from Continuing Operations Before Income Taxes (Non-GAAP) | ||||||||||||||||||||||||
North America | $ | 609 | $ | 811 | $ | 710 | $ | 732 | $ | 2,862 | $ | 2,711 | ||||||||||||
Bottling Investments | $ | 158 | $ | 394 | $ | 325 | $ | 213 | $ | 1,090 | $ | 1,322 | ||||||||||||
2
Exhibit 99.1
The Coca-Cola Company and Subsidiaries
Reclassified Operating Segment Data and Reclassified Data within Statements of Income
Reconciliation of GAAP and Non-GAAP Financial Measures
Unaudited
The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). However, management believes that certain non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. We believe these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company's performance. Disclosing these non-GAAP financial measures allows investors and Company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
ITEMS IMPACTING COMPARABILITY
The following information is provided to give qualitative and quantitative information related to items impacting comparability. Items impacting comparability are not defined terms within GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine which items to consider as "items impacting comparability" based on how management views our business; makes financial, operating, compensation and planning decisions; and evaluates the Company's ongoing performance. Items such as charges, gains and accounting changes which are viewed by management as impacting only the current period or the comparable period, but not both, or as pertaining to different and unrelated underlying activities or events across comparable periods, are generally considered "items impacting comparability". Items impacting comparability include asset impairments and restructuring charges, charges related to our productivity and reinvestment initiatives, and transaction gains/losses, in each case when exceeding a U.S. dollar threshold. Also included are timing differences related to our economic (nondesignated) hedging activities and our proportionate share of similar items incurred by our equity method investees, regardless of size.
Productivity and Reinvestment
During the periods presented, the Company incurred costs related to our productivity and reinvestment initiatives. These initiatives are focused on four key areas: restructuring the Company's global supply chain; implementing zero-based work, an evolution of zero-based budget principles across the organization; streamlining and simplifying the Company's operating model; and further driving increased discipline and efficiency in direct marketing investments. The savings realized from the program will enable the Company to fund marketing initiatives and innovation required to deliver sustainable net revenue growth. The savings will also support margin expansion and increased returns on invested capital over time.
Equity Investees
During the periods presented, the Company recognized its proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
Economic (Nondesignated) Hedges
The Company uses derivatives as economic hedges primarily to mitigate the foreign exchange risk for certain currencies, price risk associated with the purchase of materials used in the manufacturing process as well as the purchase of vehicle fuel. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in fair values of these economic hedges are immediately recognized into earnings. The Company excludes the net impact of mark-to-market adjustments for outstanding hedges and realized gains/losses for settled hedges from our non-GAAP financial information until the period in which the underlying exposure being hedged impacts our condensed consolidated statement of income. We believe this adjustment provides meaningful information related to the impact of our economic hedging activities.
3
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Three Months Ended March 31, 2017 | |||||
North America | |||||
Reported (GAAP) | $ | 2,417 | |||
Items Impacting Comparability: | |||||
Other Items1 | 5 | ||||
Comparable (Non-GAAP) | $ | 2,422 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Three Months Ended March 31, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,118 | |||
Bottling Investments Net Operating Revenues | (3,836 | ) | |||
Consolidated Eliminations | 930 | ||||
Intersegment Core Net Operating Revenue Eliminations | (3 | ) | |||
Core Business Revenues (Non-GAAP) | 6,209 | ||||
Items Impacting Comparability: | |||||
Other Items3 | 14 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,223 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $3 million during the three months ended March 31, 2017. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP core business revenues. |
4
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 860 | $ | 505 | $ | 574 | $ | 541 | $ | (89 | ) | $ | (428 | ) | $ | 1,963 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring1 | — | — | — | — | 84 | — | 84 | ||||||||||||||||
Productivity & Reinvestment | 2 | — | 35 | 1 | 14 | 87 | 139 | ||||||||||||||||
Transaction Gains/Losses2,3 | — | — | — | — | 42 | 2 | 44 | ||||||||||||||||
Other Items4,5,6 | — | — | (10 | ) | — | (3 | ) | 35 | 22 | ||||||||||||||
Comparable (Non-GAAP) | $ | 862 | $ | 505 | $ | 599 | $ | 542 | $ | 48 | $ | (304 | ) | $ | 2,252 | ||||||||
1 | The Company recorded a charge of $84 million related to the impairment of Coca-Cola Refreshments ("CCR") goodwill that is recorded in our Bottling Investments operating segment, primarily as a result of current quarter refranchising activities in North America and management's view of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. This charge was determined by comparing the fair value of the reporting unit to its carrying value. |
2 | The Company recorded charges of $42 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. These charges were recorded in the Bottling Investments operating segment. |
3 | The Company recorded charges of $2 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were recorded in the Corporate operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the Bottling Investments operating segment. |
6 | The Company recorded impairment charges of $20 million related to Venezuelan intangible assets as a result of weaker sales resulting from continued political instability. These charges were determined by comparing the fair value of the assets, derived using discounted cash flow analyses, to the respective carrying values. The Company recorded other charges of $6 million related to tax litigation expense. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating loss for the Corporate operating segment. |
5
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||
Unaudited | ||||||||
(In millions) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | ||||||||
Three Months Ended March 31, 2017 | ||||||||
North America | Bottling Investments | |||||||
Reported (GAAP) | $ | 477 | $ | (546 | ) | |||
Items Impacting Comparability: | ||||||||
Asset Impairments/Restructuring1 | — | 84 | ||||||
Productivity & Reinvestment | 35 | 14 | ||||||
Equity Investees | — | 53 | ||||||
Transaction Gains/Losses2,3 | 107 | 556 | ||||||
Other Items4,5 | (10 | ) | (3 | ) | ||||
Comparable (Non-GAAP) | $ | 609 | $ | 158 | ||||
1 | The Company recorded a charge of $84 million related to the impairment of CCR goodwill that is recorded in our Bottling Investments operating segment, primarily as a result of current quarter refranchising activities in North America and management's view of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. This charge was determined by comparing the fair value of the reporting unit to its carrying value. |
2 | The Company incurred charges of $106 million primarily related to payments made to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
3 | The Company incurred losses of $497 million due to the refranchising of certain bottling territories in North America. These losses primarily related to the derecognition of the intangible assets transferred or reclassified as held for sale. The Company also recorded charges of $60 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. These losses and charges were recorded in the Bottling Investments operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the Bottling Investments operating segment. |
6
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Three Months Ended June 30, 2017 | |||||
North America | |||||
Reported (GAAP) | $ | 2,903 | |||
Items Impacting Comparability: | |||||
Other Items1 | 3 | ||||
Comparable (Non-GAAP) | $ | 2,906 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Three Months Ended June 30, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,702 | |||
Bottling Investments Net Operating Revenues | (2,998 | ) | |||
Consolidated Eliminations | 738 | ||||
Intersegment Core Net Operating Revenue Eliminations | (4 | ) | |||
Core Business Revenues (Non-GAAP) | 7,438 | ||||
Items Impacting Comparability: | |||||
Other Items3 | 7 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 7,445 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $4 million during the three months ended June 30, 2017. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP core business revenues. |
7
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 1,076 | $ | 559 | $ | 755 | $ | 709 | $ | (651 | ) | $ | (411 | ) | $ | 2,037 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring1 | — | — | — | — | 653 | — | 653 | ||||||||||||||||
Productivity & Reinvestment | (6 | ) | 1 | 49 | 2 | 10 | 31 | 87 | |||||||||||||||
Transaction Gains/Losses2,3 | — | — | — | — | 46 | 5 | 51 | ||||||||||||||||
Other Items4,5,6 | — | — | (5 | ) | — | 30 | 46 | 71 | |||||||||||||||
Comparable (Non-GAAP) | $ | 1,070 | $ | 560 | $ | 799 | $ | 711 | $ | 88 | $ | (329 | ) | $ | 2,899 | ||||||||
1 | The Company recorded charges of $653 million related to the impairment of CCR assets that are recorded in our Bottling Investments operating segment, primarily as a result of current year refranchising activities in North America and management's view of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. These charges were determined by comparing the fair value of the assets to their carrying values. |
2 | The Company recorded charges of $47 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. These charges were recorded in the Bottling Investments operating segment. |
3 | The Company recorded charges of $4 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were recorded in the Corporate operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP operating income for the Bottling Investments operating segment. |
6 | The Company recorded other charges of $19 million related to tax litigation expense. The Company recorded impairment charges of $14 million related to Venezuelan intangible assets as a result of weaker sales and volatility of foreign currency exchange rates resulting from continued political instability. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating loss for the Corporate operating segment. |
8
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||
Unaudited | ||||||||
(In millions) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | ||||||||
Three Months Ended June 30, 2017 | ||||||||
North America | Bottling Investments | |||||||
Reported (GAAP) | $ | 659 | $ | (519 | ) | |||
Items Impacting Comparability: | ||||||||
Asset Impairments/Restructuring1 | — | 653 | ||||||
Productivity & Reinvestment | 49 | 10 | ||||||
Equity Investees | — | (38 | ) | |||||
Transaction Gains/Losses2,3 | 108 | 258 | ||||||
Other Items4,5 | (5 | ) | 30 | |||||
Comparable (Non-GAAP) | $ | 811 | $ | 394 | ||||
1 | The Company recorded charges of $653 million related to the impairment of CCR assets that are recorded in our Bottling Investments operating segment, primarily as a result of current year refranchising activities in North America and management's view of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. These charges were determined by comparing the fair value of the assets to their carrying values. |
2 | The Company recorded charges of $109 million primarily related to payments made to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
3 | The Company recorded charges of $44 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. The Company also recorded net charges of $214 million primarily due to the derecognition of the intangible assets transferred or reclassified as held for sale as a result of the refranchising of certain bottling territories in North America. These charges were recorded in the Bottling Investments operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP income from continuing operations before income taxes for the Bottling Investments operating segment. |
9
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Three Months Ended September 29, 2017 | |||||
North America | |||||
Reported (GAAP) | $ | 2,781 | |||
Items Impacting Comparability: | |||||
Other Items1 | (12 | ) | |||
Comparable (Non-GAAP) | $ | 2,769 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Three Months Ended September 29, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 9,078 | |||
Bottling Investments Net Operating Revenues | (2,392 | ) | |||
Consolidated Eliminations | 569 | ||||
Intersegment Core Net Operating Revenue Eliminations | (7 | ) | |||
Core Business Revenues (Non-GAAP) | 7,248 | ||||
Items Impacting Comparability: | |||||
Other Items3 | (15 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 7,233 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $7 million during the three months ended September 29, 2017. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP core business revenues. |
10
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Three Months Ended September 29, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 932 | $ | 563 | $ | 648 | $ | 573 | $ | (46 | ) | $ | (425 | ) | $ | 2,245 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Productivity & Reinvestment | 6 | 2 | 47 | 1 | 15 | 58 | 129 | ||||||||||||||||
Transaction Gains/Losses1 | — | — | — | — | 47 | — | 47 | ||||||||||||||||
Other Items2,3,4 | — | — | 6 | — | (4 | ) | 20 | 22 | |||||||||||||||
Comparable (Non-GAAP) | $ | 938 | $ | 565 | $ | 701 | $ | 574 | $ | 12 | $ | (347 | ) | $ | 2,443 | ||||||||
1 | The Company recorded charges of $47 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. These charges were recorded in the Bottling Investments operating segment. |
2 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP operating income for the North America operating segment. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the Bottling Investments operating segment. |
4 | The Company recorded other charges of $18 million related to tax litigation expense. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating loss for the Corporate operating segment. |
11
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||
Unaudited | ||||||||
(In millions) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | ||||||||
Three Months Ended September 29, 2017 | ||||||||
North America | Bottling Investments | |||||||
Reported (GAAP) | $ | 585 | $ | (675 | ) | |||
Items Impacting Comparability: | ||||||||
Productivity & Reinvestment | 47 | 15 | ||||||
Equity Investees | — | 14 | ||||||
Transaction Gains/Losses1,2 | 72 | 975 | ||||||
Other Items3,4 | 6 | (4 | ) | |||||
Comparable (Non-GAAP) | $ | 710 | $ | 325 | ||||
1 | The Company recorded charges of $72 million primarily related to payments made to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
2 | The Company recorded charges of $213 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. The Company also recorded net charges of $762 million primarily due to the derecognition of the intangible assets transferred or reclassified as held for sale as a result of the refranchising of certain bottling territories in North America. These charges were recorded in the Bottling Investments operating segment |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP income from continuing operations before income taxes for the North America operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the Bottling Investments operating segment. |
12
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Three Months Ended December 31, 2017 | |||||
North America | |||||
Reported (GAAP) | $ | 2,649 | |||
Items Impacting Comparability: | |||||
Other Items1 | (6 | ) | |||
Comparable (Non-GAAP) | $ | 2,643 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Three Months Ended December 31, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 7,512 | |||
Bottling Investments Net Operating Revenues | (1,234 | ) | |||
Consolidated Eliminations | 280 | ||||
Intersegment Core Net Operating Revenue Eliminations | (4 | ) | |||
Core Business Revenues (Non-GAAP) | 6,554 | ||||
Items Impacting Comparability: | |||||
Other Items | — | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 6,554 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $4 million during the three months ended December 31, 2017. |
13
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | ||||||||||||||||||||||||
Three Months Ended December 31, 2017 | ||||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | ||||||||||||||||||
Reported (GAAP) | $ | 757 | $ | 591 | $ | 614 | $ | 324 | $ | (176 | ) | $ | (756 | ) | $ | 1,354 | ||||||||
Items Impacting Comparability: | ||||||||||||||||||||||||
Productivity & Reinvestment | 24 | 4 | 110 | 6 | 18 | 17 | 179 | |||||||||||||||||
Transaction Gains/Losses1,2 | — | — | — | — | 146 | 14 | 160 | |||||||||||||||||
Other Items3,4 | — | — | (5 | ) | — | 1 | 257 | 253 | ||||||||||||||||
Comparable (Non-GAAP) | $ | 781 | $ | 595 | $ | 719 | $ | 330 | $ | (11 | ) | $ | (468 | ) | $ | 1,946 | ||||||||
1 | The Company recorded charges of $147 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. These charges were recorded in the Bottling Investments operating segment. |
2 | The Company recorded charges of $13 million for noncapitalizable transaction costs associated with pending and closed transactions. These charges were recorded in the Corporate operating segment. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
4 | The Company recorded a charge of $225 million due to contributions the Company made to The Coca-Cola Foundation. The Company recorded other charges of $24 million related to tax litigation expense. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating loss for the Corporate operating segment. |
14
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||
Unaudited | |||||||||
(In millions) | |||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | |||||||||
Three Months Ended December 31, 2017 | |||||||||
North America | Bottling Investments | ||||||||
Reported (GAAP) | $ | 599 | $ | (618 | ) | ||||
Items Impacting Comparability: | |||||||||
Productivity & Reinvestment | 110 | 18 | |||||||
Equity Investees | 2 | 41 | |||||||
Transaction Gains/Losses1,2 | 26 | 771 | |||||||
Other Items3 | (5 | ) | 1 | ||||||
Comparable (Non-GAAP) | $ | 732 | $ | 213 | |||||
1 | The Company recorded charges of $26 million primarily related to payments made to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
2 | The Company recorded charges of $105 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. The Company also recorded net charges of $667 million primarily due to the derecognition of the intangible assets transferred or reclassified as held for sale as a result of the refranchising of certain bottling territories in North America. These charges were recorded in the Bottling Investments operating segment. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
15
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Year Ended December 31, 2017 | |||||
North America | |||||
Reported (GAAP) | $ | 10,750 | |||
Items Impacting Comparability: | |||||
Other Items1 | (10 | ) | |||
Comparable (Non-GAAP) | $ | 10,740 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Year Ended December 31, 2017 | |||||
Reported (GAAP) Net Operating Revenues | $ | 35,410 | |||
Bottling Investments Net Operating Revenues | (10,460 | ) | |||
Consolidated Eliminations | 2,517 | ||||
Intersegment Core Net Operating Revenue Eliminations | (18 | ) | |||
Core Business Revenues (Non-GAAP) | 27,449 | ||||
Items Impacting Comparability: | |||||
Other Items3 | 6 | ||||
Comparable Core Business Revenues (Non-GAAP) | $ | 27,455 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $18 million during the year ended December 31, 2017. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP core business revenues. |
16
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 3,625 | $ | 2,218 | $ | 2,591 | $ | 2,147 | $ | (962 | ) | $ | (2,020 | ) | $ | 7,599 | |||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring1 | — | — | — | — | 737 | — | 737 | ||||||||||||||||
Productivity & Reinvestment | 26 | 7 | 241 | 10 | 57 | 193 | 534 | ||||||||||||||||
Transaction Gains/Losses2,3 | — | — | — | — | 281 | 21 | 302 | ||||||||||||||||
Other Items4,5,6 | — | — | (14 | ) | — | 24 | 358 | 368 | |||||||||||||||
Comparable (Non-GAAP) | $ | 3,651 | $ | 2,225 | $ | 2,818 | $ | 2,157 | $ | 137 | $ | (1,448 | ) | $ | 9,540 | ||||||||
1 | The Company recorded charges of $737 million related to the impairment of CCR assets that are recorded in our Bottling Investments operating segment, primarily as a result of current year refranchising activities in North America and management's view of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. These charges were determined by comparing the fair value of the assets to their carrying values. |
2 | The Company recorded charges of $283 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. These charges were recorded in the Bottling Investments operating segment. |
3 | The Company recorded charges of $19 million for noncapitalizable transaction costs associated with pending and closed transactions. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP operating income for the Bottling Investments operating segment. |
6 | The Company recorded a charge of $225 million due to contributions the Company made to The Coca-Cola Foundation. The Company recorded other charges of $67 million related to tax litigation expense. The Company recorded impairment charges of $34 million related to Venezuelan intangible assets as a result of weaker sales and volatility of foreign currency exchange rates resulting from continued political instability. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating loss for the Corporate operating segment. |
17
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||
Unaudited | ||||||||
(In millions) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | ||||||||
Year Ended December 31, 2017 | ||||||||
North America | Bottling Investments | |||||||
Reported (GAAP) | $ | 2,320 | $ | (2,358 | ) | |||
Items Impacting Comparability: | ||||||||
Asset Impairments/Restructuring1 | — | 737 | ||||||
Productivity & Reinvestment | 241 | 57 | ||||||
Equity Investees | 2 | 70 | ||||||
Transaction Gains/Losses2,3 | 313 | 2,560 | ||||||
Other Items4,5 | (14 | ) | 24 | |||||
Comparable (Non-GAAP) | $ | 2,862 | $ | 1,090 | ||||
1 | The Company recorded charges of $737 million related to the impairment of CCR assets that are recorded in our Bottling Investments operating segment, primarily as a result of current year refranchising activities in North America and management's view of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. |
2 | The Company recorded charges of $313 million primarily related to payments made to certain of our unconsolidated bottling partners in North America in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
3 | The Company recorded charges of $422 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. The Company also recorded net charges of $2,140 million primarily due to the derecognition of the intangible assets transferred or reclassified as held for sale as a result of the refranchising of certain bottling territories in North America. These charges were recorded in the Bottling Investments operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in an increase to our non-GAAP income from continuing operations before income taxes for the Bottling Investments operating segment. |
18
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||
Unaudited | |||||
(In millions) | |||||
Net Operating Revenues by Operating Segment: | |||||
Year Ended December 31, 2016 | |||||
North America | |||||
Reported (GAAP) | $ | 10,325 | |||
Items Impacting Comparability: | |||||
Other Items1 | (18 | ) | |||
Comparable (Non-GAAP) | $ | 10,307 | |||
Core Business Revenues (Non-GAAP): 2 | |||||
Year Ended December 31, 2016 | |||||
Reported (GAAP) Net Operating Revenues | $ | 41,863 | |||
Bottling Investments Net Operating Revenues | (19,735 | ) | |||
Consolidated Eliminations | 4,720 | ||||
Intersegment Core Net Operating Revenue Eliminations | (15 | ) | |||
Core Business Revenues (Non-GAAP) | 26,833 | ||||
Items Impacting Comparability: | |||||
Other Items3 | (9 | ) | |||
Comparable Core Business Revenues (Non-GAAP) | $ | 26,824 | |||
1 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP net operating revenues. |
2 | Core business revenues included the net operating revenues from the Europe, Middle East and Africa, Latin America, North America, Asia Pacific and Corporate operating segments offset by intersegment revenue eliminations of $15 million during the year ended December 31, 2016. |
3 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP core business revenues. |
19
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | |||||||||||||||||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | |||||||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Operating Income (Loss) by Operating Segment: | |||||||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||
Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Consolidated | |||||||||||||||||
Reported (GAAP) | $ | 3,668 | $ | 1,953 | $ | 2,614 | $ | 2,210 | $ | 1 | $ | (1,789 | ) | $ | 8,657 | ||||||||
Items Impacting Comparability: | |||||||||||||||||||||||
Asset Impairments/Restructuring1 | — | — | — | — | 393 | — | 393 | ||||||||||||||||
Productivity & Reinvestment | 32 | (2 | ) | 134 | 1 | 82 | 105 | 352 | |||||||||||||||
Transaction Gains/Losses2,3 | — | — | — | — | 285 | 32 | 317 | ||||||||||||||||
Other Items4,5,6,7 | — | 76 | (47 | ) | — | (130 | ) | 232 | 131 | ||||||||||||||
Comparable (Non-GAAP) | $ | 3,700 | $ | 2,027 | $ | 2,701 | $ | 2,211 | $ | 631 | $ | (1,420 | ) | $ | 9,850 | ||||||||
1 | The Company recorded charges of $153 million related to certain intangible assets. These charges included $143 million related to the impairment of certain U.S. bottlers' franchise rights recorded in our Bottling Investments operating segment. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's view of the proceeds that may be ultimately received upon refranchising the territory. The remaining charge of $10 million was related to an impairment of goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions. The Company recorded charges of $240 million related to the integration of our German bottling operations, which were deconsolidated in May 2016. All charges were recorded in the Bottling Investments operating segment. |
2 | The Company recorded charges of $277 million, related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. The Company also recorded charges of $9 million for noncapitalizable transaction costs related to the deconsolidation of our German bottling operations. |
3 | The Company recorded charges of $32 million for noncapitalizable transaction costs associated with pending and closed transactions. |
4 | The Company recorded a charge of $76 million due to the write-down related to receivables from our bottling partner in Venezuela as a result of the continued lack of liquidity and our revised assessment of the U.S. dollar value we expect to realize upon the conversion of the Venezuelan bolivar into U.S. dollars by our bottling partner to pay our receivables. This charge was recorded in the Latin America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the North America operating segment. |
6 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP operating income for the Bottling Investments operating segment. |
7 | The Company recorded a charge of $200 million due to contributions the Company made to The Coca-Cola Foundation. The Company recorded other charges of $31 million related to tax litigation expense. These charges were recorded in the Corporate operating segment. In addition, the impact of the Company's adjustment related to our economic hedging activities resulted in a increase to our non-GAAP operating loss for the Corporate operating segment. |
20
Exhibit 99.1
The Coca-Cola Company and Subsidiaries | ||||||||
Reclassified Operating Segment Data and Reclassified Data within Statements of Income | ||||||||
Reconciliation of GAAP and Non-GAAP Financial Measures | ||||||||
Unaudited | ||||||||
(In millions) | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes by Operating Segment: | ||||||||
Year Ended December 31, 2016 | ||||||||
North America | Bottling Investments | |||||||
Reported (GAAP) | $ | 2,592 | $ | (1,955 | ) | |||
Items Impacting Comparability: | ||||||||
Asset Impairments/Restructuring1 | — | 393 | ||||||
Productivity & Reinvestment | 134 | 82 | ||||||
Equity Investees | — | 52 | ||||||
Transaction Gains/Losses2,3 | 32 | 2,879 | ||||||
Other Items4,5 | (47 | ) | (129 | ) | ||||
Comparable (Non-GAAP) | $ | 2,711 | $ | 1,322 | ||||
1 | The Company recorded charges of $153 million related to certain intangible assets. These charges included $143 million related to the impairment of certain U.S. bottlers' franchise rights recorded in our Bottling Investments operating segment. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's view of the proceeds that may be ultimately received upon refranchising the territory. The remaining charge of $10 million was related to an impairment of goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions. The Company recorded charges of $240 million related to the integration of our German bottling operations, which were deconsolidated in May 2016. All charges were recorded in the Bottling Investments operating segment. |
2 | The Company recorded charges of $31 million related to payments made to certain of our unconsolidated North America bottling partners in order to convert their bottling agreements to a comprehensive beverage agreement with additional requirements. These charges were recorded in the North America operating segment. |
3 | The Company recorded charges of $2,456 million primarily due to the derecognition of the intangible assets transferred or reclassified as held for sale as a result of the refranchising of certain bottling territories in North America. The Company also recorded charges of $415 million primarily related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. Additionally, the Company recorded charges of $9 million for noncapitalizable transaction costs related to the deconsolidation of our German bottling operations. All charges were recorded in the Bottling Investments operating segment. |
4 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the North America operating segment. |
5 | The impact of the Company's adjustment related to our economic hedging activities resulted in a decrease to our non-GAAP income from continuing operations before income taxes for the Bottling Investments operating segment. |
21