Part I: Financial Statement Analysis [60 marks]
You are required to apply the tools of analysis learned in the course to analyze and assess the financial performance of The Coca-Cola Company and PepsiCo, Inc. for the years 2016 2018.
Requirement (1):
Compute and classify the following financial ratios for each company for the fiscal years 2016, 2017, and 2018 based on their respective annual reports. [15 marks]
Return on total assets (profitability)
Debt ratio ( solvency)
Profit margin ratio (profitability)
Current ratio (liquidity)
Acid-test ratio (liquidity)
Gross margin ratio (profitability)
Inventory turnover (efficiency)
Days sales in inventory (efficiency)
Accounts receivable turnover (efficiency)
Total asset turnover (efficiency)
Times interest earned (solvency)
The debt-to-equity ratio (solvency)
Book value per ordinary share ( market prospect)
Basic earnings per share (market prospect)
Price-earnings ratio (market prospect)
Dividend yield (Market prospects)
Cash flow on total assets (liquidity)
PS. I'll post this question twice, just answer this and paste to the other one I've uploaded as a favor for you to answer this as two questions.
THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 2016 5,317 $ 6,006 $ 8,555 9,3529,595 15,358 18,150 4,051 3,667 3,856 2,655 2,675 2,000 2,481 219 2,797 7,329 36,545 34.010 20,856 16,260 1,096 989 4,560 4,248 8,203 10,635 6,729 6,097 138 3,676 9,401 10,629 726 $ 87,896 $ 87,270 368 December 31, (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $477 and $466, respectively Inventories Prepaid expenses and other assets Assets held for sale Assets held for sale - discontinued operations TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT - net TRADEMARKS WITH INDEFINITE LIVES BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS 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 DEFERRED 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 $ $ 8,748 13,205 3,298 410 9,490 12,498 3,527 307 37 710 1,496 27,194 31,182 8,021 2,522 26,532 29,684 4,081 3,753 1,760 1,760 15,864 14,993 60,430 65,502 (10,305) (11,205) (50,677) (47,988) 17,07223,062 1,905 158 18,977 23,220 $ 87,896 $ 87,270 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2016 2015 S $ 8,555 9,595 18,150 4,051 3,856 2,675 2,481 2,797 34,010 16,260 989 4,248 10,635 6,097 3,676 10,629 726 87,270 7,309 8,322 15.631 4,269 3,941 2,902 2,752 3,900 33,395 12,318 3,470 4,110 12,571 5,989 6,000 11,289 854 89,996 $ $ December 31. (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $466 and $352, respectively Inventories Prepaid expenses and other assets Assets held for sale TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS PROPERTY, PLANT AND EQUIPMENT net TRADEMARKS WITH INDEFINITE LIVES BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS 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 TOTAL CURRENT LIABILITIES LONG-TERM DEBT OTHER LIABILITIES DEFERRED 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 - 2,752 and 2,716 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY $ $ 9,490 12,498 3,527 307 710 26,532 29,684 4,081 3,753 9,660 13,129 2,676 331 1,133 26,929 28,311 4,301 4,691 1,760 14,993 65,502 (11,205) (47,988) 23,062 158 23,220 87,270 1,760 14,016 65,018 (10,174) (45,066) 25,554 210 25,764 89,996 $ $ Refer to Notes to Consolidated Financial Statements. Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016 (in millions except per share amounts) 2018 2017 2016 $ 64,661 $ 63,525 $ 62,799 29,381 2 8,796 28.222 35,280 34,729 34,577 25,170 24,453 24,773 10,110 10,276 9,804 298 233 (19) (1,525) (1,151) (1,342) 306 110 9,1899 ,602 8,553 (3,370) 4,694 2.174 12,559 4,908 6,379 44 50 $ 12,515 $ 4,857 $ 6,329 9.199 Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income/expense) Interest expense Interest income and other Income before income taxes (Benefit from provision for income taxes (See Note 5) Net income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo Net Income Attributable to PepsiCo per Common Share Basic Diluted Weighted-average common shares outstanding Basic Diluted 0244 51 $ $ 8.84 8.78 $ $ 3.40 $ 3.38 $ 4.39 4.36 1,415 1,425 1,425 1,438 1,439 1,452 See accompanying notes to the consolidated financial statements. 2018 Amount 41 Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016 (in millions) 2017 Shares Amount Shares A mount Shares Preferred Stock Balance, beginning of year 0.8 S 41 0.8 $ 410.8 S Conversion to common stock (0.1) - - .- Retirement of preferred stock (0.7) (35) Balance, end of year 41 Repurchased Preferred Stock Balance, beginning of year (0.7) (197) (0.7) (192) Redemptions Retirement of preferred stock 0.7 Balance, end of year Common Stock Balance, beginning of year 1,420 24 Share issued in connection with preferred stock conversion to 41 (186) (6) 199 1971 (192) common stock (12) 1.409 2. 4,091 3.996 250 4,076 289 290 (236) (193) (103) (145) (138) (130) (6) 4.091 (4) 3.996 3,953 52,518 50,472 52.839 (145) 12,515 (5,098) 4,857 (4,536) 6,329 (4.282) (1) (164) 59,947 52.839 52.518 Change in repurchased common stock Balance, end of year Capital in Excess of Par Value Balance, beginning of year Share-based compensation expense Equity issued in connection with preferred stock conversion to common stock Stock option exercises. RSUS, PSUs and PEPunits converted Withholding tax on RSUS, PSUs and PEPunits converted Other Balance, end of year Retained Earnings Balance, beginning of year Cumulative effect of accounting changes Net income attributable to PepsiCo Cash dividends declared - common Cash dividends declared - preferred Retirement of preferred stock Balance, end of year Accumulated Other Comprehensive Loss Balance, beginning of year Other comprehensive (loss) income attributable to PepsiCo Balance, end of year Repurchased Common Stock Balance, beginning of year Share repurchases Stock option exercises, RSUS, PSUs and PEPunits converted Other Balance, end of year Total PepsiCo Common Shareholders' Equity Noncontrolling Interests Balance, beginning of year Net income attributable to noncontrolling interests Distributions to noncontrolling interests Currency translation adjustment Othernet Balance, end of year Total Equity (13,919) (13,057) (2,062) (15,119) 862 (13,319) (600) (13.919) (13.057) (446) (18) (32,757) (2.000) (31,468) (2.000) 708 (418) (29) (18) 10 (29.185) (3,000) 712 469 (458) (446) (438) (34,286) 14.518 (32,757) 11.045 (31.468) 11,246 92 104 107 (49) (62) (55) 104 14.602 $ 10,981 11.199 (a) Includes total tax benefits of $110 million in 2016. (6) Cash dividends declared per common share were $3.5875, $3.1675 and $2.96 for 2018, 2017 and 2016, respectively. Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 29, 2018 and December 30, 2017 (in millions except per share amounts) 2018 2017 ASSETS Current Assets Cash and cash equivalents Short-term investments Restricted cash Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other indefinite-lived intangible assets Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets 8,721 $ 10.610 2728,900 1,997 7,142 7,024 3,128 2,947 633 1,546 21,893 31,027 17,589 17.240 1,644 1.268 14,808 14,744 14,181 12,570 28,989 2 7,314 2,409 2,042 4,364 760 913 77,648 $ 79,804 $ $ $ 4,026 18,112 22,138 28,295 3,499 9,114 63,046 5,485 15,017 20,502 33,796 3.242 11.283 68,823 3.2- LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Deferred Income Taxes Other Liabilities Total Liabilities Commitments and contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Common stock, par value 1/3 per share (authorized 3.600 shares; issued, net of repurchased common stock at par value: 1,409 and 1,420 shares, respectively) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, in excess of par value (458 and 446 shares, respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity - - 41 (197) 23 3,953 59,947 (15,119) (34,286) 14,518 84 14,602 77,648 24 3,996 52.839 (13,057) (32,757) 11.045 92 10,981 79,804 $ $ Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 30, 2017 and December 31, 2016 (in millions except per share amounts) 2017 2016 $ $ ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investinents in Noncontrolled Affiliates Other Assets Total Assets 10,610 8,900 7,024 2,947 1,546 31,027 17,240 1,268 14,744 12,570 27,314 2,042 9,158 6.967 6,694 2.723 908 26,450 16,591 1,237 14,430 12,196 26,626 1,950 636 73,490 $ 79,804 $ $ $ 5,485 15,017 20,502 33,796 11,283 3,242 68,823 6,892 14,243 21.135 30.053 6,669 4,434 62,291 62.29 41 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Common stock, par value 14/3 per share (authorized 3,600 shares, issued, net of repurchased common stock at par value: 1,420 and 1,428 shares, respectively) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, in excess of par value (446 and 438 shares, respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity 41 (192) (197) 24 3,996 52.839 (13,057) (32,757) 11,045 92 10,981 79,804 24 4,091 52,518 (13,919) (31,468) 11.246 104 11,199 73,490 $ $ See accompanying notes to the consolidated financial statements. Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 31, 2016 and December 26, 2015 (in millions except per share amounts) 2016 2015 S $ ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investinents in Noncontrolled Affiliates Other Assets Total Assets 9,158 6,967 6,694 2,723 1,547 27,089 16,591 1,237 14,430 12,196 26,626 1,950 636 74,129 9,096 2,913 6,437 2,720 1,865 23,031 16,317 1,270 14,177 11,811 25,988 2,311 750 69,667 S $ S $ 6,892 14,243 21,135 30,053 6,669 5,073 62,930 4,071 13,507 17,578 29,213 5,887 4,959 57,637 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations Accounts payable and other current liabilities Total Current Liabilities Long-Term Debt Obligations Other Liabilities Deferred Income Taxes Total Liabilities Commitments and contingencies Preferred Stock, no par value Repurchased Preferred Stock PepsiCo Common Shareholders' Equity Common stock, par value 1/3 per share authorized 3.600 shares, issued, net of repurchased common stock at par value: 1,428 and 1,448 shares, respectively) Capital in excess of par value Retained earnings Accumulated other comprehensive loss Repurchased common stock, in excess of par value (438 and 418 shares, respectively) Total PepsiCo Common Shareholders' Equity Noncontrolling interests Total Equity Total Liabilities and Equity 4141 (192) (186) 4,091 52,518 (13,919) (31,468) 11,246 104 11,199 74,129 24 4,076 50,472 (13,319) (29,185) 12,068 107 12.030 69,667 S $ See accompanying notes to the consolidated financial statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2018 2017 2016 Year Ended December 31, (In millions except per share data) NET OPERATING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERATING INCOME Interest income Interest expense Equity income (loss) net Other income (loss) net INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes from continuing operations NET INCOME FROM CONTINUING OPERATIONS Income (loss) from discontinued operations (net of income taxes of $126, $47 and $0, respectively) CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 31,856 11,770 20,086 10,307 1,079 8,700 682 919 1,008 (1,121) 8,350 1,623 6,727 $ 35,410 13,255 22,155 12,654 1,902 7,599 677 841 1,071 (1,764) 6,742 5,560 1,182 $ 41,863 16,465 25,398 15,370 1,371 8,657 642 733 835 (1,265) 8.136 1,586 6,550 (251) 101 6,476 1,283 - 4235 6,550 23 $ 6,434 $ 1,248 $ 6,527 $ 1.51 $ $ 1.51 1.49 Basic net income per share from continuing operations Basic net income (loss) per share from discontinued operations BASIC NET INCOME PER SHARE Diluted net income per share from continuing operations! Diluted net income (loss) per share from discontinued operations DILUTED NET INCOME PER SHARE AVERAGE SHARES OUTSTANDING BASIC Effect of dilutive securities AVERAGE SHARES OUTSTANDING DILUTED 1.58 $ 0.28 $ (0.07) 0.02 1.51 $ 0.293 $ 1.57 $ 0.27 $ (0.07) 0.02 1.50 $ 0.29 $ 4,2594,272 40 52 4.299 4.324 $ 1.49 4,317 50 4,367 Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests. 2 Calculated based on net income (loss) from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. 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 CASH FLOWS 2018 2017 2016 $ $ 6,550 6,476 $ 1,283 251 (101) 6,727 1,182 1,086 1,260 225 219 (450) (1,256) (457) (628) (38) 281 189 1,459 558 1,218 682 (269) (1,202) 7,3206 ,930 6.550 1,787 258 (856) (449) 158 1,146 647 (224) 8,792 Year Ended December 31, (In millions) OPERATING ACTIVITIES Consolidated net income (Income) loss from discontinued operations Net income from continuing operations Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss net of dividends Foreign currency adjustments Significant (gains) losses on sales of assets-net Other operating charges 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 Net cash provided by (used in) financing activities from discontinued operations Net cash provided by (used in) discontinued operations EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year Less: Restricted cash and restricted cash equivalents at end of year Cash and cash equivalents at end of year (7,789) 14,977 (1,040) 1,362 (1,347) 245 (60) 6,348 (17,296) 16,694 (3,809) 3,821 (1,675) 104 (93) (2,254) (16,626) 17,842 (838) 1,035 (2,262) 150 (305) (1,004) 27,339 (30,568) 1,476 (1,912) (6,644) (243) (10,552) 29,857 (28,768) 1,595 (3,682) (6,320) (91) (7,409) 27,281 (25,615) 1,434 (3,681) (6,043) (6,545) 111 307 (421) (58) 205 9115 (38) (262) 241 241 2,945 (2,477) 1,238 6,373 8,850 7,612 9,318 6,373 8,850 392367295 8,926 $ 6,006 $ 8,555 $ Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2018 2017 2016 4,2594,288 4,324 48 5350 (39) (82) (86) 4,268 4,2594,288 1,760 $ 1,760 $ 1,760 $ 15,864 467 14,993 655 14,016 589 130 258 225 (36) 16,520 219 (3) 15,864 14,993 65,502 65,018 60,430 3,014 6,434 (6,644) 63,234 1,248 (6,320) 60,430 6,527 (6,043) 65,502 Year Ended December 31, (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 Treasury stock issued to employees related to stock compensation plans Purchases of stock for treasury Balance at end of year COMMON STOCK CAPITAL SURPLUS Balance at beginning of year Stock issued to employees related to stock compensation plans Tax benefit (charge) from stock compensation plans Stock-based compensation expense Other activities Balance at end of year REINVESTED EARNINGS Balance at beginning of year Adoption of accounting standards! Net income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.56, $1.48 and $1.40 in 2018, 2017 and 2016, respectively) Balance at end of year ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year Adoption of accounting standards! Net other comprehensive income (loss) Balance at end of year TREASURY STOCK Balance at beginning of year Treasury stock issued to employees related to stock compensation plans Purchases of stock for treasury Balance at end of year TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at beginning of year Net income attributable to noncontrolling interests Net foreign currency translation adjustments Dividends paid to noncontrolling interests Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Refer to Note 1, Note 3, Note 4 and Note 15. Refer to Notes to Consolidated Financial Statements. (11,205) (10,174) (10,305) (409) (2,100) (12,814) 900 (10,305) (1,031) (11,205) (50,677) (47,988) 704 909 (1,746) (3,598) (51,719) (50,677) $ 16,981 $ 17,072 (45,066) 811 (3,733) (47,988) $ 23,062 $ 1,905 $ 158 $ 210 42 35 53 38 (13) (31) (15) 25 101 - 7 2,077 1,805 (157) 41 1,905 (34) (4) 158 $ $ $ THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2018 2017 2016 4,2594,288 4,324 48 5350 (39) (82) (86) 4,268 4,2594,288 1,760 $ 1,760 $ 1,760 $ 15,864 467 14,993 655 14,016 589 130 258 225 (36) 16,520 219 (3) 15,864 14,993 65,502 65,018 60,430 3,014 6,434 (6,644) 63,234 1,248 (6,320) 60,430 6,527 (6,043) 65,502 Year Ended December 31, (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 Treasury stock issued to employees related to stock compensation plans Purchases of stock for treasury Balance at end of year COMMON STOCK CAPITAL SURPLUS Balance at beginning of year Stock issued to employees related to stock compensation plans Tax benefit (charge) from stock compensation plans Stock-based compensation expense Other activities Balance at end of year REINVESTED EARNINGS Balance at beginning of year Adoption of accounting standards! Net income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.56, $1.48 and $1.40 in 2018, 2017 and 2016, respectively) Balance at end of year ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year Adoption of accounting standards! Net other comprehensive income (loss) Balance at end of year TREASURY STOCK Balance at beginning of year Treasury stock issued to employees related to stock compensation plans Purchases of stock for treasury Balance at end of year TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Balance at beginning of year Net income attributable to noncontrolling interests Net foreign currency translation adjustments Dividends paid to noncontrolling interests Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS Refer to Note 1, Note 3, Note 4 and Note 15. Refer to Notes to Consolidated Financial Statements. (11,205) (10,174) (10,305) (409) (2,100) (12,814) 900 (10,305) (1,031) (11,205) (50,677) (47,988) 704 909 (1,746) (3,598) (51,719) (50,677) $ 16,981 $ 17,072 (45,066) 811 (3,733) (47,988) $ 23,062 $ 1,905 $ 158 $ 210 42 35 53 38 (13) (31) (15) 25 101 - 7 2,077 1,805 (157) 41 1,905 (34) (4) 158 $ $ $ THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2018 2017 $ $ 6,006 9,352 15,358 8,926 2,025 10,951 5,013 3,396 2,766 1,962 5,317 6,546 30,634 19,407 867 4,139 2,667 8,232 6,682 December 31, (In millions except par value) ASSETS CURRENT ASSETS Cash and cash equivalents Short-term investments TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Marketable securities Trade accounts receivable, less allowances of $489 and $477, respectively Inventories Prepaid expenses and other assets Assets held for sale Assets held for sale - discontinued operations TOTAL CURRENT ASSETS EQUITY METHOD INVESTMENTS OTHER INVESTMENTS OTHER ASSETS DEFERRED INCOME TAX ASSETS PROPERTY, PLANT AND EQUIPMENT - net TRADEMARKS WITH INDEFINITE LIVES BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES GOODWILL OTHER INTANGIBLE ASSETS 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 DEFERRED INCOME TAX LIABILITIES 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 - 2,772 and 2,781 shares, respectively EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 3,667 2,655 2,000 219 7,329 36,545 20,856 1,096 4,230 330 8,203 6,729 138 9,401 368 $ 87,896 51 10,263 274 $ 83,216 $ $ 8,932 13,194 4,997 378 1,722 29,223 25,364 7,638 1,933 8,748 13,205 3,298 410 37 1,496 27,194 31,182 8,021 2,522 1,760 16,520 63,234 (12.814) (51,719) 16,981 2,077 19,058 $ 83,216 1,760 15,864 60,430 (10.305) (50,677) 17,072 1,905 18,977 $ 87,896 Refer to Notes to Consolidated Financial Statements
