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Posted on Sep 10, 2024

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

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. Based on the information contained in these financial statements, determine each of the following for each company.

1. Cash used in (for) investing activities during 2017 (from the statement of cash flows).

2. What was the total other comprehensive income for the year 2017?

3. What was the unrealized gains or losses reported as part of other comprehensive income?

b. Identify from Coca-Cola's December 31, 2017, balance sheet the investments it reported as being accounted for under the equity method.

c. In Note 3, what is Coca-Cola's policy regarding its cost method investments?

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 2017 2016 2015 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 from discontinued operations (net of income taxes of $47. $0 and $0, respectively) CONSOLIDATED NET INCOME Less: Net income attributable to noncontrolling interests NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 35,410 $41,863 $ 44,294 13,256 16.465 17,482 22,154 25,398 26,812 12,496 15.262 16,427 2,157 1,510 1.657 7,501 8,626 8,728 677 642 613 841 733 856 1,071 835 489 (1,666) (1.234) 631 6,742 8,136 9,605 5,560 1.586 2.239 1,182 6,550 7,366 101 1,283 6,550 7,366 35 23 15 $ 1.248 $ 6,527 $ 7.351 S Basic net income per share from continuing operations $ 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 S 1.69 Diluted net income per share from continuing operations! $ 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 52 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 Calculated based on net income from discontinued operations less net income from discontinued operations attributable to non controlling 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 COMPREHENSIVE INCOME 2017 2016 2015 $ 1,283 $ 6,550 $ 7.366 861 Year Ended December 31, (In millions) CONSOLIDATED NET INCOME Other comprehensive income: Net foreign currency translation adjustment Net gain (loss) on derivatives Net unrealized gain (loss) on available-for-sale securities Net change in pension and other benefit liabilities TOTAL COMPREHENSIVE INCOME (LOSS) Less: Comprehensive income (loss) attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 188 (626) (3.959) (382) 142 17 (684) (53) 86 5.506 2.951 10 (3) 322 2.221 73 $ 2,148 $ 5,496 $ 2,954 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 2016 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 5466, 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 TANGIRI E ASSETS $ 8,555 9,595 18,150 4,051 3,856 2,675 2,481 2,797 $ 6,006 9,352 15,358 5,317 3,667 2,655 2,000 219 7,329 36,545 20,856 1,096 4,560 8,203 6,729 138 9,401 34,010 16,260 989 4.248 10,635 6,097 3,676 in CA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS $ 6006 $8.555 9595 15.15 5317 TRISO 405 3.56 3.661 2.655 2.797 34010 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 219 7339 36.345 20.256 1,096 4560 8.203 989 138 9,401 10.635 6.097 3.676 1059 725 $ 87.270 $ 87895 $ 8,748 13.305 3.298 $ 9.490 12.498 3.527 307 710 1.495 27,194 31,182 8,021 2.522 26,532 29,684 4,081 3,753 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 1.760 15,864 60.430 (10,305) (50,677) 17,072 1,905 18.977 $ 87,896 1.760 14.993 65.502 (11.205) (47988) 23.062 158 23.220 $ 87,270 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 2017 2016 2015 $ 6.550 $ 7.366 $ 1,283 (101) 1,182 1,260 219 (1.256) 6550 1,787 258 (856) 158 1.146 647 281 1.459 1,218 (269) 3,529 6,995 7.366 1.970 236 73 (122) (137) (374) 929 744 (157) 10 528 (221) 8,796 (16,520) 15,911 (3.900) (15.499) 16,624 (838) (15.831) 14.079 (2.491) 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 AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at beginning of year Balance at end of year 3,821 (1,675) 104 (126) (2,385) 1,035 (2.262) 150 (209) (999) 565 (2.553) 85 (40) (6.186) 29,857 (28,768) 1,595 (3,682) (6,320) (91) (7.409) 27.281 (25.615) 1.434 (3.681) (6,043) 79 (6.545) 40.434 (37,738) 1.245 (3.564) (5.741) 251 (5.113) (65) (38) 8 242 11 (6) (878 (2,549) 8,555 $ 6,006 1.246 7,309 $ 8,555 (1,649) 8.958 $ 7,309 Refer to Notes to Consolidated Financial Statements. Specimen Financial Statements: The Coca-Cola Company THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2017 2016 2015 4,334 SO (86) 4.288 $ 1.760 1,760 44 (86) 4324 $ 1.760 4259 14.993 635 14,016 589 130 258 13.154 532 94 236 219 (3) 15.864 14.993 14,016 65.502 1.248 65.018 6.527 (6,043) 65 502 63,408 7,351 (5.741) 65,018 60.430 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 Net income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.48, 51.40 and $1.32 in 2017, 2016 and 2015, respectively Balance at end of year ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year 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 adjustment Dividends paid to noncontrolling interests Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS (11.205) 900 (10,305) (10,174) (1.031) (11.205) (5.777) (4.397) (10,174) (47,988) (45.066) 909 811 (3.598) (3.733) (50,677) (47.988) $ 17,072 $ 23,062 (42.225) 696 (3.537 (45,066 $ 25 554 $ S 241 15 158 S 35 38 (15) 210 23 (13) (25) 1 (18) (31) (3) 1.805 (157) (4) 158 $ 1,905 S S 210 Refer to Notes to Consolidated Financial Statements. PepsiCo, Inc. Pepsico, Inc. is a leading global food and beverage company with excelentary portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tmpicana. Through its operations, authorized bottlers, contract manufacturers, and other third parties, PepsiCo makes, markets, distributes, and sells a wide variety of convenient and enjoyable beverages, foods, and snacks, serving customers and consumers in more than 200 countries and territories. Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 27, 2017 December 28, 2016 and December 29, 2015 (in millions except per share amounts) 2017 63,525 $ 28,785 34,740 24.231 2016 62.799 $ 28.209 34,590 24,805 10,509 (1,151) 244 9,602 Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Venezuela impairment charges Operating Profit Interest expense Interest income and other Income before income taxes 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 Cash dividends declared per common share 9,785 (1.342) 110 8,553 2.174 6,379 50 6,329 $ 2015 63,056 28,731 34,325 24,613 1.359 8,353 (970) 59 7,442 1,941 5,501 49 5,452 4,908 $1 $ 4,857 $ 3.71 $ $ 3.40 $ 3.38 S 4.39 $ 4.36 $ 3.67 1,425 1,438 3.1675$ 1,452 2.96 $ 1,469 1,485 2.7625 Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017 December 31, 2016 and December 26, 2015 (in millions) 2017 4,908 $ 2016 6,379 2015 5.501 $ S (302) Net income Other comprehensive incomelloss), net of taxes: Net currency translation adjustment Net change on cash flow hedges Net pension and retiree medical adjustments Net change on securities Other 46 (316) (24) (2.827) 3 171 1 1,109 (36) (159) (68) 16 862 5,770 (51) 5,719 $ (2.652) 2,849 Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo (596) 5,783 (54) 5.729 $ $ 2.802 See accompanying notes to the consolidated financial statements. Specimen Financial Statements! Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 30, 2017 and December 31, 2016 (in millions except per share amounts) 2016 2017 $ $ ASSETS Current Assets Cash and cash equivalents Short-term investments Accounts and notes receivable, nel Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, et Amortizable Intangible Assets, met Goodwill Other nonamortizable intangible assets Nonamortizable Intangible Assets Investments in Noncontrolled Afiliates 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 2,042 913 79,804 9.158 6,967 6.694 2.723 908 26.450 16,591 1.237 14430 12.196 26,626 1.950 636 73.490 $ 5,485 15.017 20.502 33,796 11,283 3.242 68.823 6,892 14.243 21.135 30.053 6,669 62.291 41 41 (192) (197) 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/, 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 eamings 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 24 3,996 52,8.39 (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 Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017 December 31, 2016 and December 26, 2015 (in millions) 2016 and December 20, 2013 sional 202 2017 2016 2015 $ 4,90 5 5 2. 24 160 (135) 373 (1130 3.500 2.416 295 230 (205 73 1.190 467 (205) SOI Operating Acties Net income Depreciation and more Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges Charged to the action with Tapi Venezuela impairment charges Pension and retire medical plan expenses Pension and retire medical plan contributions Deferred income taxes and her charges and credits Provisionales tax expense related to the TCJA Change in and abilities Account and receivable Inventories Prepaid expenses and other one Accounts payable and other current les Income taxes payable Othernet Net Cash Provided by Operating Activities 2,451 2021 (349) (461) (146) 10 30 201 SS 6 9.94 10673 10.64 (3.040) (2.758) INO (12) (6) (568) 76 267 Investing Acties Capital spending Sales of property, plant and equipment Acquisitions and investments in controlled Reduction of cash dorto Venerala deesdae Divestres Short-term investments, by orginal murky More than three months purchases More than there mesure More than three months Three months or less Other investing.net Net Cash Used for investing Activities (18.385) 15,744 790 8.399 16 3 157 (7.148) 5) 7.500 105 91 39 15 1.505 (40) Financing Activities Proceeds from issances of long term deb Payments of long-term det Debe redempoons Short-term borrowings, by originality More than three months proceeds More than three months - payments Three months or less, net Cash dividend paid Share purchases.com Share repurchas-preferred Proceeds from exercises of stock options Withholding x payments RSUS, PSUs and PEPts covered Other financing Net Cash Used for Financing Acties Effect of exchange rate changes en cash and casheques Net Increase in Cash and Cash Equivalents Cash and Cash Equivalent. Beplanning of Year Cash and Cash Equivalents, End of Year 151 462 15 504 (130) (151) 14.15 3.211) 47 1,452 9.158 10,610 9,158 Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions) 2017 2016 Shares 0.8 (0.7) Amount 41 Amount 41 2015 Shares 0.8 $ (0.7) $ 0.8 Amount 41 (192) (5) 5 (186) (6) (181) (5) (186) (0.7) (0.7) (0.7) (197) (192) 1,428 24 24 25 (8) 1,448 (20) 1,428 (40) 1.448 1.420 24 4,091 4,076 289 (138) 4,115 799 (182) 290 (236) (145) (4) (151) (130) (6) 4,091 (5) 4,076 52,518 4,857 (4,536) 50.472 6.329 49,092 5,452 (4,071) (4.282) Preferred Stock Balance, beginning of year Redemptions Balance, end of year Common Stock Balance, beginning of year Change in repurchased common stock Balance, end of year Capital in Excess of Par Value Balance, beginning of year Share-based compensation expense Stock option exercises, RSUS. PSUs and PEPunits converted Withholding tax on RSUS, PSUs and PE Punits converted Other Balance, end of year Retained Earnings Balance, beginning of year Net income attributable to PepsiCo Cash dividends declared - common Cash dividends declared - preferred Balance, end of year Accumulated Other Comprehensive Loss Balance, beginning of year Other comprehensive income (los) 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 no controlling interests Distributions to noncontrolling interests Currency translation adjustment Othernet Balance, end of year Total Equity 52.839 52.518 50,472 (13.919) 862 (13.319) (600) (10.669) (2.650) (13.319) (13,057) (13.919) (438) (418) (29) (18) (29.185) (3.000) 712 (378) (52) 12 (24.985) (4.999) 794 10 9 (31,468) (2.000) 708 3 (32,757) 11,045 5 (31,468) (446) (438) (418) (29,185) 12.068 11.246 104 107 110 51 SO 49 (62) (55) (48) + (2) (1) (2) 107 92 104 $ 10,981 $ 11,199 5 12.030 (a) Includes total tax benefits of $110 million in 2016 and 5107 million in 2015, See accompanying notes to the consolidated financial statements. 200 countries. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME 856 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 Equity income (loss) -- net 1,071 835 489 Other income (loss)-net (1.666) (1.234) 631 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 6,742 8.136 9,605 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. SO and SO, respectively) 101 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 COCA-COLA COMPANY $ 1.248 $ 6,527 $ 7.351 Basic net income per share from continuing operations $ 0.28 S 1.51 $ Basic net income per share from discontinued operations 1.69 0.02 BASIC NET INCOME PER SHARE $ 0.29 S 1.51 $ Diluted net income per share from continuing operations' 1.69 $ 0.27 $ Diluted net income per share from discontinued operations 1.49 s 0.02 DILUTED NET INCOME PER SHARE $ 0.29 AVERAGE SHARES OUTSTANDING - BASIC $ 1.49 $ 1.67 4,272 Effect of dilutive securities 4,317 4.352 AVERAGE SHARES OUTSTANDING - DILUTED 52 50 53 4,367 4.405 Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests. Calculated based on net income from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. Per share amounts do not add due to rounding 1.67 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2017 2016 2015 $ 1.283 $ 6,550 $ 7,366 $1,283 % 6,550 $ 861 188 Year Ended December 31. (In millions) CONSOLIDATED NET INCOME Other comprehensive income: Net foreign currency translation adjustment Net gain (loss) on derivatives Net unrealized gain (loss) on available-for-sale securities Net change in pension and other benefit liabilities TOTAL COMPREHENSIVE INCOME (LOSS) Les Comprehensive income (loss) attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY (626) (3.959) (382) 142 17 (684) (53) 86 5.506 2.951 10 (3) 322 2,221 73 $ 2,148 $ 5,496 S 2,954 $ 2.148 $ 5,496 5 2.954 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 2016 $ 8,555 9.595 18.150 4.051 3.856 2.675 2,481 2,797 $ 6,006 9,352 15,358 5,317 3,667 2,655 2,000 219 7,329 36,545 20,856 1,096 4,560 8,203 6,729 138 9,401 368 34.010 16.260 989 4.748 . 3.576 16.02 $ 87,896 $ 82.272 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 5466, 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, 50.25 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 $ 9,490 12.498 3,527 307 710 $ 8,748 13,205 3,298 410 37 1.496 27,194 31,182 8,021 2,522 26.532 29.684 4,081 3,753 1,760 15,864 60,430 (10,305) (50,677) 17,072 1,905 18,977 $ 87,896 1.760 14.993 65,502 (11,205) (47.988) 23.062 158 23.220 $ 87,270 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS 2017 2016 2015 $ 6.550 $ 7,366 $ 1,283 (101) 1,182 1.260 219 (1.256) 281 1,459 1.218 (269) 3,529 6,995 6.550 1,787 258 (856) (449) 158 1.146 647 (224) (221) 8,796 7,366 1.970 236 73 (122) (137) (374) 929 744 (157) 10.528 (16,520) 15,911 (3.900) (15.499) 16,624 (838) (15.831) 14.079 (2.491) Year Ended December 31. (In millions) OPERATING ACTIVITIES Consolidated net income (Income) loss from discontinued operations Net income from continuing operations Depreciation and amortisation 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 AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at beginning of year Balance at end of year 3.821 (1,675) 104 (126) (2.385) 1.035 (2.262) 150 (209) (999) 565 (2.553) 85 (40) (6.186) 29,857 (28,768) 1,595 40.434 (37,738) 1.245 27.281 (25,615) 1.434 (3.681) (6,043) 79 (6.545) (3.564) (5.741) (6,320) (91) (7,409) 251 (5.113) (65) (38) 8 242 (6) (878) (2,549) 8.555 $ 6,006 7.309 $ 8.555 (1.649) 8.958 $ 7,309 Refer to Notes to Consolidated Financial Statements. Specimen Financial Statements: The Coca-Cola Company THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2017 2016 2015 4.366 44 4.288 53 (82) 4,259 $ 1,760 4324 50 (86) 4.288 $ 1,760 (86) 4,324 $ 1.760 14.993 655 14,016 589 130 258 13,154 532 94 236 219 15.864 14,993 14.016 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 Net income attributable to shareowners of The Coca-Cola Company Dividends (per share -S1.48. $1.40 and $1.32 in 2017, 2016 and 2015, respectively) Balance at end of year ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance at beginning of year 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 adjustment Dividends paid to noncontrolling interests Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities Other activities 65,502 1.248 (6,320) 60.430 65,018 6,527 (6,043) 65,502 63.408 7,351 (5.741) 65,018 (11.205) 900 (10,174) (1.031) (11.205) (5.777) (4,397) (10,174) (10.305) (47,988) (45.066) 909 811 (3,598) (3.733) (50,677) (47.988) $ 17,072 $ 23,062 (42.225) 696 (3.537) (45,066) $ 25,554 $ 158 S $ 35 38 210 23 (13) (25) 241 15 (18) (31) (15) I- (3) TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1,805 (157) 41 $ 1,905 (34) (4) 158 Elo 6 210 Refer to Notes to Consolidated Financial Statements, $ Specimen Financial Statements: PepsiCo, Inc. Pepsico, Inc. is a leading global food and beverage company with a complementary portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana. Through its operations, authorized bottlers, contract manufacturers, and other third parties, PepsiCo makes, markets, distributes, and sells a wide variety of convenient and enjoyable beverages, foods, and snacks, serving customers and consumers in more than 200 countries and territories. Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 27, 2017 December 28, 2016 and December 29, 2015 (in millions except per share amounts) 2017 62.525 S 28,785 34,740 24.231 2016 62.799 $ 28.209 34,590 24,805 10,509 (1.151) Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Venezuela impairment charges Operating Profit Interest expense Interest income and other Income before income taxes 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 Cash dividends declared per common share 2015 63,056 28,731 34,325 24,613 1.359 8,353 (970) 59 7,442 1,941 5.501 49 5,452 9,785 (1,342) 110 8,553 2,174 6,379 50 6,329 9,602 4.694 4,908 51 4,857 S $ S $ $ 3.40 $ 3.38 $ $ 4.36 $ 3.71 3.67 1,425 1,439 1,452 2.96 $ 1.469 1,485 2.7625 $ 3.16755 Consolidated Statement of Comprehensive Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017 December 31, 2016 and December 26, 2015 (in millions) 2017 4,908 $ 2016 6,379 $ 2015 5.501 Net income Other comprehensive income loss), net of taxes: Net currency translation adjustment Net change on cash flow hedges Net pension and retiree medical adjustments Net change on securities Other (302) 46 (316) (24) (2.827) 3 171 1 1,109 (36) (159) (68) 16 862 5,770 (51) 5,719 $ Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo (596) 5.783 (54 5,729 $ (2.652) 2,849 (47) 2,802 $ See accompanying notes to the consolidated financial statements. Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries in millions) Fiscal years ended December 30, 2017 December 31, 2016 and December 26, 2015 1.2016 and December 26, 2018 Sions 2015 2017 2016 5.500 Operating Acties Net 5 4 6379 2.1 2. W 210 (1131 73 1.159 SOI (695) 453 (205) 78 Restructuring and implement charpes Cash payments for restructuring charges Charges related to the with Tag Vence par charges Pension and retirem planesses Pension and retiree medical planos Deferred income taxes de charges and credits Provisional tax expense related to be TCH Act Change in assets and abilities: Account and not receive Laventories Prepaid expenses and the current assets Accounts payable and other current liabilities Income taxes payable Othernet Net Cash Provided by Operating Activities (1) 0349 (75) 10 997 379 (461) (244) (501 1,692 55 201 9. 10.63 064 (2,758) 180 3040) 99 (212) (86) (565) 76 85 Investing Activities Capital spending Sales of property.plant and equipment Acquisitions and investments in encontrolled triales Reduction of cash due to Venradecendo Divestitares Short-term investments, by original maurly More than three months purchases More than three months - malarities More than three months Three months or less. Det Other investing.net Net Cash Used for Investing Activities (12.504) 8,399 (4,428) 4,111 (18.85 15,744 790 2 29 (4,403 3 16 9 (7.148) 15 3.569 7.509 7.818 03.105) (2.504) 8,702 (4,095) 91 59 15 (125) Financing Activities Proceeds from issuances of long-term die Payments of long-term debe Debt redemptions Short-term borrowings, by original maturity: More than three months - proceeds More than three months - payments Three months or less.net Cash dividends paid Share repurchases common Share repurchases preferred Proceeds from evercises of Mock options Withholding tax payments on RSUS, PSUs and PEPts cowered Other financing Net Cash Used for Financing Activities Effect of exchange rate changes on cash and cash equivalent Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year 1.505 (4.227) (30000) (7) (2.000) 33 (4.00) (3.000) (5) 15 (150 (3.211) (145) (75) (4,186) 47 1,452 9.158 10.610 2.952 6114 9,158 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 Investments in Noncontrolled Amiliates 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 2,042 913 79.804 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 $ $ $ 5.483 15.017 20.502 33,796 11,283 3.242 68.823 6.892 14,243 21.135 30.053 6,669 62.291 (197) (192) 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/, 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 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 Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017 December 31, 2016 and December 26, 2015 (in millions) 2016 2017 2015 Shares OR Act Shares OS Amunt 41 5 (181) $ 10.7 OT) 5) 0.7 (6) (136) 0.7) (9) (197) 07 0.7 25 34 14 (40) 1.478 20 24 24 1.420 24 4,091 200 4,115 299 (182) 4016 289 (13) (130) (6) 4.091 (145) (151) (5) 4,076 50.472 49.092 5.452 (4.071) 4.RS 52518 50.472 52.839 Preferred Stock Balance beginning of year Redemption Balance end of year Commen Stock Balance beginning of year Change in repurchased common stock Halance, end of year Capital in Excess of Par Value Balance beginning of year Share-based compensation expense Stock option exerci, RSU PSUs and PE Punits converted Withholding tax on RSU, PSUs and PEPunits converted Other Balance end of year Retained Earnings Balance, beginning of year Net income attributable to PepsiCo Cash dividends declared.common Cash dividends declared preferred Balance, end of year Accumulated Other Comprehensive Low Balance, beginning of your Other comprehensive incomelloss) attributable to PepsiCo Balance, end of year Repurchased Common Stock Balance, beginning of year Share repurchases Stock option exercises, RSU, PSUs and PEPunits converted Other Balance, end of year Total PepsiCo Common Shareholders' Equity No controlling Interests Balance, beginning of year Net income a tributable to noncontrolling interests Distributions to noncontrolling interests Currency translation adjustment Othernet Balance, end of year Total Equity (13919 (13,319) (600) (13.919) (10 669) (2.650) (133199 (13_057) (4) (31.463 (29.185) 3.000) 712 (378) (52) (24.985) (4.999) 9 70 12 794 10 5 (413) (446) (32,757) 11.04 (31.468) 11.245 (29.185) 12.068 104 110 49 51 107 50 (55) 4 (2) 104 11.199 107 12.030 10.981 S (a) Includes total tax benefits of $110 million in 2016 and $107 million in 2015 See accompanying notes to the consolidated financial statements