0000021344-18-000012.txt : 20180404 0000021344-18-000012.hdr.sgml : 20180404 20180403175625 ACCESSION NUMBER: 0000021344-18-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180403 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180404 DATE AS OF CHANGE: 20180403 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COCA COLA CO CENTRAL INDEX KEY: 0000021344 STANDARD INDUSTRIAL CLASSIFICATION: BEVERAGES [2080] IRS NUMBER: 580628465 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02217 FILM NUMBER: 18734910 BUSINESS ADDRESS: STREET 1: ONE COCA COLA PLAZA CITY: ATLANTA STATE: GA ZIP: 30313 BUSINESS PHONE: 404-676-2121 MAIL ADDRESS: STREET 1: ONE COCA COLA PLAZA CITY: ATLANTA STATE: GA ZIP: 30313 8-K 1 form8-k2018operatingsegmen.htm 8-K Document


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
April 3, 2018
cocacolaa22.jpg
(Exact name of Registrant as specified in its charter)


Delaware
(State or other jurisdiction
of incorporation)
001-02217
(Commission
File Number)
58-0628465
(I.R.S Employer
Identification No.)

One Coca-Cola Plaza
Atlanta, Georgia
(Address of principal executive offices)
 
30313
(Zip Code)

Registrant's telephone number, including area code: (404) 676-2121

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 





Item 7.01    Regulation FD Disclosure.

Effective January 1, 2018, The Coca-Cola Company (the "Company") reclassified certain revenue streams and related cost of goods sold from the Company's Bottling Investments operating segment to its North America operating segment.

Additionally, as previously disclosed, effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2017–07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is required to be applied retrospectively, and therefore the Company reclassified the non–service cost components of net periodic pension cost and net periodic postretirement benefit cost, along with certain other benefit plan charges and curtailment charges, from operating income to other income (loss) – net in our statements of income.

Attached as Exhibit 99.1 is a schedule of unaudited reclassified data reflecting the changes described above. The information in this Form 8-K, including Exhibit 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits

EXHIBIT INDEX






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
 
THE COCA-COLA COMPANY
(REGISTRANT)
 
 
 
Date: April 3, 2018
By:
/s/ MARK RANDAZZA
 
 
Mark Randazza
Vice President, Assistant Controller and Chief Accounting Officer



EX-99.1 2 exhibit991.htm EXHIBIT 99.1 Exhibit

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
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