Comparative Analysis Case The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. a. Identify the change in accounting principles reported by Coca-Cola during the 3 years covered by its income statements (2015-2017). Describe the nature of the change and the year of change. b. Identify the changes in accounting principles reported by PepsiCo during the 3 years covered by its income statements (2015-2017). Describe the nature of the change and the year of change. c. What types of estimates did PepsiCo discuss in 2017? sports drinks. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now available in more than 200 countries. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2017 2016 2015 (In millions except per share data) NET OPERATING REVENUES $ 35,410 $ 41,863 $ 44,294 Cost of goods sold 13,256 16,465 17,482 GROSS PROFIT 22,154 25.398 26,812 Selling, general and administrative expenses 12,496 15,262 16,427 Other operating charges 2,157 1,510 1,657 OPERATING INCOME 7.501 8,626 8,728 Interest income 677 642 613 Interest expense 841 733 856 Equity income (loss) - net 1,071 835 489 Other income floss) - net (1,666) (1,234) INCOME FROM CONTINUING OPERATIONS BEFORE 6.742 8,136 9,605 INCOME TAXES Income taxes from continuing operations 5.560 1,586 2,239 NET INCOME FROM CONTINUING OPERATIONS 1,182 6.550 7.366 Income from discontinued operations (net of income taxes of $47. $0 and $o, respectively) CONSOLIDATED NET INCOME 1,283 6.550 7.366 Less: Net Income attributable to noncontrolling interests 35 23 15 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE $ 1,248 $ 6,527 $ 7351 COCA-COLA COMPANY 631 101 N W CO MacBook Pro F4 F5 F6 F7 F8 F9 F10 F11 F12 A & 7 ( 9 5 6 8 0 U U Reading Bedding Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 35 23 15 $ 1,248 $ 6,527 $ 7.351 52 Basic net income per share from continuing operations! 8 0.28 $ 1.51 $ 1.69 Basic net income per share from discontinued operations 0.02 BASIC NET INCOME PER SHARE $ 0.29 $ 1.51 $ 1.69 Diluted net income per share from continuing operations! S 0.27 $ 1.49 $ 1.67 Diluted net income per share from discontinued operations 0.02 DILUTED NET INCOME PER SHARE $ 0.29 $ 1.49 $ 1.67 AVERAGE SHARES OUTSTANDING - BASIC 4,272 4.317 4.352 Effect of dilutive securities 50 53 AVERAGE SHARES OUTSTANDING - DILUTED 4.324 4.367 4.405 Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests, 2 Calculated bandil on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. 3 Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2017 2016 2015 (in millions) CONSOLIDATED NET INCOME 8 1,283 $ 6,550 $7.366 Other comprehensive income 861 Net foreign currency translation adjustment (626) (3.98 w MacBook Pro F4 F5 F6 FZ F8 F9 F10 F11 FV2 . % 5 & 7 ( 9 ) 0 6 8 Spee Grou MYYC Ethic Anal Cal@ Wiley Vi e Crea -1119503682/cft/6/76/4/2/4/12/2/2@0:0 Update ellation Cou... FF Patient First Cons... Inter Accounting I.. Bedding Reading Lis 2 Calculated based on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. 3 Per share amounts do not add due to rounding. Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2017 2016 2015 (In millions) CONSOLIDATED NET INCOME $ 1,283 $ 6,550 $ 7.366 Other comprehensive income: Net foreign currency translation adjustment 861 (626) (3.959) Net gain (loss) on derivatives (433) (382) 142 Net unrealized gain (loss) on available-for-sale securities 188 17 (684) Net change in pension and other benefit liabilities 322 (53) 86 TOTAL COMPREHENSIVE INCOME (LOSS) 2,221 5,506 2,951 Less: Comprehensive income (loss) attributable to noncontrolling interests 73 (3) TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO $ 2,148 $ 5,496 $ 2,954 SHAREOWNERS OF THE COCA-COLA COMPANY THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2017 2016 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents 6,006 $ 8,555 Short-term investments 9,352 9.59 10 b Window Help 32 a & Male 7 Grou U MYYC Ethic Spee ARE bal Cale Wiles Vi X Crea 81119503682/cfi/6/764/4/2/4/24/2/2@0:0 Update: stellation Cou... 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Bedding Reading List THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2017 2016 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents 6,006 8,555 Short-term investments 9,352 9,595 20 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 15,358 18,150 Marketable securities 44 5,317 4,051 Trade accounts receivable, less allowances of $477 and $466, respectively 3,667 3,856 73 Inventories 2,655 2,675 90 Prepaid expenses and other assets 2,000 2,481 Assets held for sale 25 219 2,797 Assets held for sale - discontinued operations 7:329 TOTAL CURRENT ASSETS 36,545 34,010 EQUITY METHOD INVESTMENTS 20,856 16,260 OTHER INVESTMENTS 1,096 989 OTHER ASSETS 4.560 4,248 PROPERTY, PLANT AND EQUIPMENT - net 8,203 10,635 TRADEMARKS WITH INDEFINITE LIVES 6,729 6,097 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 138 3,676 GOODWILL 9,401 10,629 OTHER INTANGIBLE ASSETS 368 726 TOTAL ASSETS $ 87,896 $ 87,270 LIABILITIES AND EQUITY Grow YC Ethic RO F Analy Cale: Wile Crea + 19503682/cf/6/76/4/2/4/28/2/44/2@0:36.9 pdate ation Cou... 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Bedding OTHER INTANGIBLE ASSETS 368 $ 87,896 Reading List 720 87,270 TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Liabilities held for sale Liabilities held for sale - discontinued operations TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFEREED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized - 11,200 shares; Issued - 7,040 and 7,040 shares, respectively Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,781 and 2,752 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $ 8,743 $ 9,490 13,205 12,498 3,298 3,527 410 307 37 710 1,496 27,194 26,532 31,182 29,684 8,021 4,081 2,522 3,753 1,760 1,760 15,864 14,993 60,430 65,502 (10,305) (11,205) (50,677) (47,988) 17,072 23.062 1,905 158 23,220 $ 87,896 $ 87,270 18,977 Refer to Notes to Consolidated Financial Statements. 503682/cf/6/76/4/2/4/28/2/84/2/2@0:1:23 Update in Cou... P Patient First Cons... Inter Accounting II... Bedding Reading List Treasury stock, at cost - 2,781 and 2,752 shares, respectively (50,677) (47,988) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 17,072 23,062 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,905 158 TOTAL EQUITY 18,977 23,220 TOTAL LIABILITIES AND EQUITY $ 87,896 $ 87,270 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 2016 2015 (In millions) OPERATING ACTIVITIES Consolidated net income 1,283 $ 6,550 $ 7,366 (Income) loss from discontinued operations (101) Net income from continuing operations 1,182 6,550 7,366 Depreciation and amortization 1,260 1,787 1,970 Stock-based compensation expense 219 258 236 Deferred income taxes (1,256) (856) 73 Equity (income) loss net of dividends (628) (449) (122) Foreign currency adjustments 281 158 (137) Significant (gains) losses on sales of assets - net 1,459 1,146 (374) Other operating charges 1,218 647 929 Other items (269) (224) 744 Net change in operating assets and liabilities 3,529 (221) (157) Net cash provided by operating activities 6,995 8,796 10,528 INVESTING ACTIVITIES Al Tab Window Help * 24 Q8 Mon Apr 2021 Grou MYYC Ethic bee "ARC Analy Coler Wiley ViX Crea 5/9781119503682/c1/6/76/4/2/4/34/2/26/2@0:72:9 Update Constellation Cou... 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Bedding B Reading List (269) 3,529 6,995 (224) (221) 8,796 744 (157) 10,528 answe (16,520) (15.499) (15,831) 15,911 16,624 14,079 (3,900) (838) (2,491) 3,821 1,035 565 201 442 7351 Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by (used in) investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by (used in) financing activities CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations (1,675) 104 (126) (2,385) (2,262) 150 (209) (999) (2,553) 85 (40) (6,186) 9009 2555 29,857 27,281 40.434 (28,768) (25,615) (37.738) 1,595 1,434 1,245 (3,682) (3,681) (3.564) (6,320) (6,043) (5.741) (91) 79 251 (7,409) (6,545) (5,113) 111 (65) - Crea 2503682/611/6/76/4/2/4/34/2/58/2@.84.9 Upda ion Cou... Patient First Cons... Inter Accounting L. Bedding Reading L Purchases of stock for treasury (3,682) (3,681) (3,564) Dividends (6,320) (6,043) (5,741) Other financing activities (91) 79 251 Net cash provided by (used in) financing activities (7,409) (6,545) (5,113) CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued 111 operations Net cash provided by (used in) investing activities from discontinued (65) operations Net cash provided by (used in) nancing activities from discontinued (38) operations Net cash provided by (used in) discontinued operations 8 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND 242 (878) CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (lecrease) during the year (2,549) 1,246 (1,649) Balance at beginning of year 8,555 7,309 8,958 Balance at end of year $ 6,006 $ 8,555 $ 7.309 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY Year Ended December 31, 2017 2016 2015 (In millions except per share data) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA- COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING Balance at beginning of year 4,288 4.324 4.30 Grou MyYcEthic Spee Ro 5 Analy Caler Wiley 03682/cfi/6/769/4/2/4/36/4/2@0:0 Update Cou... PF Patient First Cons... Inter Accounting L... Bedding Reading List ans 4,366 20 44 735 900 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY ear Ended December 31, 2017 2016 2015 In millions except per share data) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA- COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING Balance at beginning of year 4,288 4.324 Treasury stock issued to employees related to stock compensation 53 50 44 plans Purchases of stock for treasury (82) (86) (86) Balance at end of year 4,259 4,288 4,324 COMMON STOCK $ 1,760 $ 1,760 $ 1,760 CAPITAL SURPLUS Balance at beginning of year 14,993 14,016 13,154 Stock issued to employees related to stock compensation plans 655 58 532 Tax benefit (charge) from stock compensation plans 130 94 Stock-based compensation expense 219 258 236 Other activities (3) Balance at end of year 15,864 14,993 14,016 REINVESTED EARNINGS Balance at beginning of year 65,502 65,018 63,408 Net income attributable to shareowners of The Coca-Cola Company 1,248 6,527 7,351 Dividends (per share - $1.48, $1.40 and $1.32 in 2017, 2016 and (6.320) (6,043) (5.741) 2015, respectively) Balance at end of year 60,430 65,502 65,018 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 255 And Tab Window Help Bon Apr 21 9 GrouU MYYC Ethic Spee PARO Calde w Wiley Vix Creat 2781119503682/cf[/6/76/4/2/4/40/2/40/2/2@0:69.7 Update: nstellation Cou... 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Bedding Reading List 2015, respectively) Balance at end of year 60,430 65,502 65,018 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year (11,205) (10,174) (5.777) Net other comprehensive income (loss) 900 (1,031) (4.397) Balance at end of year (10,305) (11,205) (10,174) TREASURY STOCK Balance at beginning of year (47,988) (45,066) (42,225) 20 Treasury stock issued to employees related to stock compensation 909 811 696 plans 44 Purchases of stock for treasury (3,598) (3.733) (3,537) 73 Balance at end of year (50,677) (47,988) (45,066) TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE $ 17,072 $ 23,062 $ 25,554 COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at Beginning of year 158 $ 210 $ 241 Net income attributable to noncontrolling interests 35 23 15 Net foreign currency translation adjustment 38 (13) (18) Dividends paid to noncontrolling interests (15) (25) (31) Contributions by noncontrolling interests 1 Business combinations 1,805 Deconsolidation of certain entities (157) (34) Other activities 41 (4) 6 TOTAT FONTTV ATTDTRUITARTET NONCONTROTTINGS 90 255 . Comparative Analysis Case The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. a. Identify the change in accounting principles reported by Coca-Cola during the 3 years covered by its income statements (2015-2017). Describe the nature of the change and the year of change. b. Identify the changes in accounting principles reported by PepsiCo during the 3 years covered by its income statements (2015-2017). Describe the nature of the change and the year of change. c. What types of estimates did PepsiCo discuss in 2017? sports drinks. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now available in more than 200 countries. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2017 2016 2015 (In millions except per share data) NET OPERATING REVENUES $ 35,410 $ 41,863 $ 44,294 Cost of goods sold 13,256 16,465 17,482 GROSS PROFIT 22,154 25.398 26,812 Selling, general and administrative expenses 12,496 15,262 16,427 Other operating charges 2,157 1,510 1,657 OPERATING INCOME 7.501 8,626 8,728 Interest income 677 642 613 Interest expense 841 733 856 Equity income (loss) - net 1,071 835 489 Other income floss) - net (1,666) (1,234) INCOME FROM CONTINUING OPERATIONS BEFORE 6.742 8,136 9,605 INCOME TAXES Income taxes from continuing operations 5.560 1,586 2,239 NET INCOME FROM CONTINUING OPERATIONS 1,182 6.550 7.366 Income from discontinued operations (net of income taxes of $47. $0 and $o, respectively) CONSOLIDATED NET INCOME 1,283 6.550 7.366 Less: Net Income attributable to noncontrolling interests 35 23 15 NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE $ 1,248 $ 6,527 $ 7351 COCA-COLA COMPANY 631 101 N W CO MacBook Pro F4 F5 F6 F7 F8 F9 F10 F11 F12 A & 7 ( 9 5 6 8 0 U U Reading Bedding Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 35 23 15 $ 1,248 $ 6,527 $ 7.351 52 Basic net income per share from continuing operations! 8 0.28 $ 1.51 $ 1.69 Basic net income per share from discontinued operations 0.02 BASIC NET INCOME PER SHARE $ 0.29 $ 1.51 $ 1.69 Diluted net income per share from continuing operations! S 0.27 $ 1.49 $ 1.67 Diluted net income per share from discontinued operations 0.02 DILUTED NET INCOME PER SHARE $ 0.29 $ 1.49 $ 1.67 AVERAGE SHARES OUTSTANDING - BASIC 4,272 4.317 4.352 Effect of dilutive securities 50 53 AVERAGE SHARES OUTSTANDING - DILUTED 4.324 4.367 4.405 Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests, 2 Calculated bandil on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. 3 Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2017 2016 2015 (in millions) CONSOLIDATED NET INCOME 8 1,283 $ 6,550 $7.366 Other comprehensive income 861 Net foreign currency translation adjustment (626) (3.98 w MacBook Pro F4 F5 F6 FZ F8 F9 F10 F11 FV2 . % 5 & 7 ( 9 ) 0 6 8 Spee Grou MYYC Ethic Anal Cal@ Wiley Vi e Crea -1119503682/cft/6/76/4/2/4/12/2/2@0:0 Update ellation Cou... FF Patient First Cons... Inter Accounting I.. Bedding Reading Lis 2 Calculated based on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. 3 Per share amounts do not add due to rounding. Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2017 2016 2015 (In millions) CONSOLIDATED NET INCOME $ 1,283 $ 6,550 $ 7.366 Other comprehensive income: Net foreign currency translation adjustment 861 (626) (3.959) Net gain (loss) on derivatives (433) (382) 142 Net unrealized gain (loss) on available-for-sale securities 188 17 (684) Net change in pension and other benefit liabilities 322 (53) 86 TOTAL COMPREHENSIVE INCOME (LOSS) 2,221 5,506 2,951 Less: Comprehensive income (loss) attributable to noncontrolling interests 73 (3) TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO $ 2,148 $ 5,496 $ 2,954 SHAREOWNERS OF THE COCA-COLA COMPANY THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2017 2016 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents 6,006 $ 8,555 Short-term investments 9,352 9.59 10 b Window Help 32 a & Male 7 Grou U MYYC Ethic Spee ARE bal Cale Wiles Vi X Crea 81119503682/cfi/6/764/4/2/4/24/2/2@0:0 Update: stellation Cou... 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Bedding Reading List THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2017 2016 (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents 6,006 8,555 Short-term investments 9,352 9,595 20 TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 15,358 18,150 Marketable securities 44 5,317 4,051 Trade accounts receivable, less allowances of $477 and $466, respectively 3,667 3,856 73 Inventories 2,655 2,675 90 Prepaid expenses and other assets 2,000 2,481 Assets held for sale 25 219 2,797 Assets held for sale - discontinued operations 7:329 TOTAL CURRENT ASSETS 36,545 34,010 EQUITY METHOD INVESTMENTS 20,856 16,260 OTHER INVESTMENTS 1,096 989 OTHER ASSETS 4.560 4,248 PROPERTY, PLANT AND EQUIPMENT - net 8,203 10,635 TRADEMARKS WITH INDEFINITE LIVES 6,729 6,097 BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 138 3,676 GOODWILL 9,401 10,629 OTHER INTANGIBLE ASSETS 368 726 TOTAL ASSETS $ 87,896 $ 87,270 LIABILITIES AND EQUITY Grow YC Ethic RO F Analy Cale: Wile Crea + 19503682/cf/6/76/4/2/4/28/2/44/2@0:36.9 pdate ation Cou... 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Bedding OTHER INTANGIBLE ASSETS 368 $ 87,896 Reading List 720 87,270 TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Liabilities held for sale Liabilities held for sale - discontinued operations TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFEREED INCOME TAXES THE COCA-COLA COMPANY SHAREOWNERS' EQUITY Common stock, $0.25 par value; Authorized - 11,200 shares; Issued - 7,040 and 7,040 shares, respectively Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost - 2,781 and 2,752 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $ 8,743 $ 9,490 13,205 12,498 3,298 3,527 410 307 37 710 1,496 27,194 26,532 31,182 29,684 8,021 4,081 2,522 3,753 1,760 1,760 15,864 14,993 60,430 65,502 (10,305) (11,205) (50,677) (47,988) 17,072 23.062 1,905 158 23,220 $ 87,896 $ 87,270 18,977 Refer to Notes to Consolidated Financial Statements. 503682/cf/6/76/4/2/4/28/2/84/2/2@0:1:23 Update in Cou... P Patient First Cons... Inter Accounting II... Bedding Reading List Treasury stock, at cost - 2,781 and 2,752 shares, respectively (50,677) (47,988) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 17,072 23,062 EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,905 158 TOTAL EQUITY 18,977 23,220 TOTAL LIABILITIES AND EQUITY $ 87,896 $ 87,270 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 2016 2015 (In millions) OPERATING ACTIVITIES Consolidated net income 1,283 $ 6,550 $ 7,366 (Income) loss from discontinued operations (101) Net income from continuing operations 1,182 6,550 7,366 Depreciation and amortization 1,260 1,787 1,970 Stock-based compensation expense 219 258 236 Deferred income taxes (1,256) (856) 73 Equity (income) loss net of dividends (628) (449) (122) Foreign currency adjustments 281 158 (137) Significant (gains) losses on sales of assets - net 1,459 1,146 (374) Other operating charges 1,218 647 929 Other items (269) (224) 744 Net change in operating assets and liabilities 3,529 (221) (157) Net cash provided by operating activities 6,995 8,796 10,528 INVESTING ACTIVITIES Al Tab Window Help * 24 Q8 Mon Apr 2021 Grou MYYC Ethic bee "ARC Analy Coler Wiley ViX Crea 5/9781119503682/c1/6/76/4/2/4/34/2/26/2@0:72:9 Update Constellation Cou... 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Bedding B Reading List (269) 3,529 6,995 (224) (221) 8,796 744 (157) 10,528 answe (16,520) (15.499) (15,831) 15,911 16,624 14,079 (3,900) (838) (2,491) 3,821 1,035 565 201 442 7351 Other items Net change in operating assets and liabilities Net cash provided by operating activities INVESTING ACTIVITIES Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net cash provided by (used in) investing activities FINANCING ACTIVITIES Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net cash provided by (used in) financing activities CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued operations Net cash provided by (used in) investing activities from discontinued operations (1,675) 104 (126) (2,385) (2,262) 150 (209) (999) (2,553) 85 (40) (6,186) 9009 2555 29,857 27,281 40.434 (28,768) (25,615) (37.738) 1,595 1,434 1,245 (3,682) (3,681) (3.564) (6,320) (6,043) (5.741) (91) 79 251 (7,409) (6,545) (5,113) 111 (65) - Crea 2503682/611/6/76/4/2/4/34/2/58/2@.84.9 Upda ion Cou... Patient First Cons... Inter Accounting L. Bedding Reading L Purchases of stock for treasury (3,682) (3,681) (3,564) Dividends (6,320) (6,043) (5,741) Other financing activities (91) 79 251 Net cash provided by (used in) financing activities (7,409) (6,545) (5,113) CASH FLOWS FROM DISCONTINUED OPERATIONS Net cash provided by (used in) operating activities from discontinued 111 operations Net cash provided by (used in) investing activities from discontinued (65) operations Net cash provided by (used in) nancing activities from discontinued (38) operations Net cash provided by (used in) discontinued operations 8 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND 242 (878) CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (lecrease) during the year (2,549) 1,246 (1,649) Balance at beginning of year 8,555 7,309 8,958 Balance at end of year $ 6,006 $ 8,555 $ 7.309 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY Year Ended December 31, 2017 2016 2015 (In millions except per share data) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA- COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING Balance at beginning of year 4,288 4.324 4.30 Grou MyYcEthic Spee Ro 5 Analy Caler Wiley 03682/cfi/6/769/4/2/4/36/4/2@0:0 Update Cou... PF Patient First Cons... Inter Accounting L... Bedding Reading List ans 4,366 20 44 735 900 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY ear Ended December 31, 2017 2016 2015 In millions except per share data) EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA- COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING Balance at beginning of year 4,288 4.324 Treasury stock issued to employees related to stock compensation 53 50 44 plans Purchases of stock for treasury (82) (86) (86) Balance at end of year 4,259 4,288 4,324 COMMON STOCK $ 1,760 $ 1,760 $ 1,760 CAPITAL SURPLUS Balance at beginning of year 14,993 14,016 13,154 Stock issued to employees related to stock compensation plans 655 58 532 Tax benefit (charge) from stock compensation plans 130 94 Stock-based compensation expense 219 258 236 Other activities (3) Balance at end of year 15,864 14,993 14,016 REINVESTED EARNINGS Balance at beginning of year 65,502 65,018 63,408 Net income attributable to shareowners of The Coca-Cola Company 1,248 6,527 7,351 Dividends (per share - $1.48, $1.40 and $1.32 in 2017, 2016 and (6.320) (6,043) (5.741) 2015, respectively) Balance at end of year 60,430 65,502 65,018 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 255 And Tab Window Help Bon Apr 21 9 GrouU MYYC Ethic Spee PARO Calde w Wiley Vix Creat 2781119503682/cf[/6/76/4/2/4/40/2/40/2/2@0:69.7 Update: nstellation Cou... PF Patient First Cons... Inter Accounting I... Bedding Reading List 2015, respectively) Balance at end of year 60,430 65,502 65,018 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year (11,205) (10,174) (5.777) Net other comprehensive income (loss) 900 (1,031) (4.397) Balance at end of year (10,305) (11,205) (10,174) TREASURY STOCK Balance at beginning of year (47,988) (45,066) (42,225) 20 Treasury stock issued to employees related to stock compensation 909 811 696 plans 44 Purchases of stock for treasury (3,598) (3.733) (3,537) 73 Balance at end of year (50,677) (47,988) (45,066) TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE $ 17,072 $ 23,062 $ 25,554 COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at Beginning of year 158 $ 210 $ 241 Net income attributable to noncontrolling interests 35 23 15 Net foreign currency translation adjustment 38 (13) (18) Dividends paid to noncontrolling interests (15) (25) (31) Contributions by noncontrolling interests 1 Business combinations 1,805 Deconsolidation of certain entities (157) (34) Other activities 41 (4) 6 TOTAT FONTTV ATTDTRUITARTET NONCONTROTTINGS 90 255
