Use the companies financial information to answer the following questions.
a. What type of income format(s) is used by these two companies? Identify any differences in income statement format between these two companies.
b. What are the gross profits, operating profits, net incomes, and net incomes attributable two non-controlling interest for these two companies over the three-year period 2015-2017? Which company has had better financial results over this period of time?
c. What income statement format do these two companies use to report comprehensive income?
4:47 PM Fri Sep 11 . 56% +). annuaireports.com 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 income To.. 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 S 35,410 13,256 22,154 12,496 2.157 2,157 7,501 677 841 1,071 Luca (1,666) 2 6,742 5,560 1,182 101 1.283 35 $ 41,863 16,465 25,398 15.262 1,510 8,626 64 642 733 025 835 (1,234 8,136 1,586 6,550 S 44,294 17.482 26,812 16,427 1,657 8,728 613 056 856 489 100 631 9,605 2.239 7,366 6.550 7,366 15 23 S 1,248 $ 6,527 S 7,351 S Basic net income per share from continuing operations! 0.28 $ 1.51 S 1.69 Basic net income per share from discontinued operations 0.02 BASIC NET INCOME PER SHARE S 0.29 $ 1.51 S 1.69 Diluted net income per share from continuing operations! S 0.27 $ 1.49 S 1.67 Diluted net income per share from discontinued operations 0.02 DILUTED NET INCOME PER SHARE S 0.29 $ 1.49 S 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 noncontrolling interests. Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. 72 4:47 PM Fri Sep 11 . 56% +). A annuaireports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2017 2016 2015 $ 1,283 $ 6,550 $ 7,366 861 (626) (3,959) (382) 142 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 17 322 (53) 5.506 (684) 86 2,951 2.221 73 10 (3) $ 2,148 $ 5,496 S 2,954 Refer to Notes to Consolidated Financial Statements. 73 4:47 PM Fri Sep 11 . 56% +). annualreports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 2016 S 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 16.2001 989 4,248 10,635 6,097 3,676 10,629 726 S 87.270 $ 87,896 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 VIAL Marketable securities Trade accounts receivable, less allowances of $477 and S466, 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 TA TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debu 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, al 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 S 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) 1,760 14.993 65.502 (11,205) (47,988 23.062 158 23,220 S 87,270 17,072 1,905 18,977 $ 87,896 Refer to Notes to Consolidated Financial Statements. 74 4:47 PM Fri Sep 11 . 56% +). A annualroports.com 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) ) (628) ) 281 1,459 1,218 (269) () 3,529 6,995 6.550 1,787 258 (856) (449) 158 158 1,146 647 (224) 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 Nel 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 Issuances of de 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 t 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 TOF EXC EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at heginning 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) 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) (6.320) (91) (7,409) Net 111 (65) (38) 8 EFFECT 242 (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. 75 4:47 PM Fri Sep 11 . 56% +). A annualreports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2017 2016 2015 4,288 4,324 53 50 (82) (86) 4,259 4,288 $ 1,760 S 1,760 4.366 44 (86) 4.324 S 1.760 14,993 14,016 655 589 13.154 532 94 236 130 258 219 (3) 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 ce 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 en er 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 OTAL 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 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) ( (10,174) 900 (1,031) (10,305) (11,205) (5,777) (4,397) (10,174) (47,988) (45,066) 909 811 (3,598) (3,733) (50,677) (47.988) $ 17,072 S 23,062 (42,225) 696 (3,537) (45,066) S 25.554 S 158 S 35 38 (15) 210 23 (13) (25) 1 1 241 15 (18) (31) (3) (3 1,805 (157) 41 $ 1,905 S (34) (4) 158 6 S 210 Refer to Notes to Consolidated Financial Statements. 76 4:55 PM Fri Sep 11 . 59%) annuaireports.com Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions except per share amounts) 2017 2016 $ 63,525 $ 62,799 $ 28,785 28,209 34,740 34,590 24,231 24,805 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 Basie Diluted Weighted-average common shares outstanding Basic Diluted Cash dividends declared per common share 10,509 (1,151) 244 9,602 4,694 4,908 51 4.857 $ 9,785 (1,342) 110 8,553 2,174 6,379 SO 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 S S $ 3.40 $ 3.38 $ 4.39 $ 4.36 $ 3.71 3.67 1,425 1.438 $ 3.1675 $ 1,439 1,452 2.96 $ 1,469 1,485 2.7625 See accompanying notes to the consolidated financial statements. 79 4:55 PM Fri Sep 11 .@ 59% annuaireports.com 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 S 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 1,109 (36) (159) (68) 16 862 5,770 (302) 46 (316) (24) (2.827) 3 171 1 (596) 5,783 (2,652) 2.849 Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo (51) 5,719 (54) 5,729 (47) 2,802 See accompanying notes to the consolidated financial statements. 80 Consolidated Statement of Cash Flows 4:55 PM Fri Sep 11 . 59% +) A annuaireports.com 99 of 172 Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions) 2017 2016 2015 S 4,908 S 6,379 s 2.368 284 292 295 (113) (125) 373 Operating Activities Net income Depreciation and amortization Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges Charges related to the transaction with Tingyi Venezuela impairment charges Pension and retiree medical plan expenses Pension and retiree medical plan contributions Deferred income taxes and other tax charges and credits Provisional net tax expense related to the TCJ Act Change in ussets and liabilities: Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable and other current liabilities Income taxes payable Other, net Net Cash Provided by Operating Activities 5.501 2.416 295 230 (208) 73 1.359 467 (205) 78 221 () (220) 619 2,451 501 (699) 452 (168) 20 201 (338) (341) 9,994 (349) (75) 10 997 329 64 10,673 (461) (244) (50) 1,692 55 10,864 (2,969) 180 (61) (3,040) 99 (212) (2,758) 86 (86) 267 85 76 Investing Activities Capital spending Sales of property, plant and equipment Acquisitions and investments in noncontrolled affiliates Reduction of cash due to Venezuela deconsolidation Divestitures Short-term investments, by original maturity More than three months - purchases More than three months - maturities More than three months - sales Three months or less, net Other investing, net Net Cash Used for Investing Activities (12,504) 8.399 (4,428) 4.111 (18,385) 15,744 790 2 29 (4,403) 3 (5) 5 (7,148) 7,509 (4,406) 7,818 (3,105) (2,504) 8,702 (4.095) IS Financing Activities Proceeds from issuances of long-term debt Payments of long-term debt 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 Shure repurchases - preferred Proceeds from exercises of stock options Withholding tax payments on RSUS, PSUs and PEPunits converted Other financing Net Cash Used for Financing Activities Effect of exchange rate changes on cash and cash equivalents Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year 91 (128) (1,016) (4,472) (2,000) (5) 462 (145) (76) (4,186) 47 1,452 9,158 10,610 S 59 (27) 1,SOS (4,227) (3.00) (7) 465 (130) (58) (3,211) (252) 62 9.096 9.158S $3 (4,040) (5.000) (5) 504 (151) (52) (4,112) (221) 2.962 6,134 See accompanying notes to the consolidated financial statements. 81 4:55 PM Fri Sep 11 . 59% +) annuaireports.com Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 30, 2017 and December 31, 2016 (in millions except per share amounts) 2017 2016 S 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 Investments in Noncontrolled A Miliates Other Assets Total Assets 10,610 8,900 0,900 7,024 2,947 1,546 31.027 17,240 ":-* 1,268 1.100 14,744 12,570 27,314 2,042 913 79,804 9,158 6,967 6,694 w 2,723 4112 908 26.450 20.430 16.591 10,391 1,237 1.23 14.430 12.196 26,626 1,950 636 73,490 S S S S 6,892 14,243 21,135 5,485 15,017 20,502 33,796 11,283 3.242 68,823 30.053 6,669 4,434 62,291 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 kepurchas PepsiCo Common Shareholders' Equity Common stock, par value 11s per share (authorized 3,000 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 (197) 41 (192) 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 S S See accompanying notes to the consolidated financial statements. 82 Consolidated Statement of Eau 4:56 PM Fri Sep 11 . 59%): Apple Pencil 100% Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions) 2017 Shares 0.8 S Amount 41 2016 Shares 0.5 0.85 Amount 41 2015 Shares 0.8 5. Amount 41 (0.7) (0.7) (192) (5) (197) () (186) (6) (192) (181) (5) (186) (0.3 (0.7) 10.7 24 24 1,428 (8) 1,420 1.448 (20) 1,428 1.488 (40) 1.448 25 (1) 24 4,091 290 4,076 289 4,115 299 (236) (182) (145) (130) 16) 4,091 (151) (S) 4,076 3,996 52,518 4,857 (4,536) 50,472 6.329 49.092 5.452 (4,071) Preferred Stock Repurchased Preferred Stock Balance, beginning of year Redemptions Balance, end of your Common Stock Balance, beginning of year Change in repurchased common stock Balance, cod 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 PEPunits converted Other Balance, end of year Retained Earnings Balance, beginning of year Net income attributable to PepsiCo Cash dividends declared - common Cash chvilends cleclared preferred Balance, end of year Accumulated Other Comprehensive Loss Balance, beginning of your Ollscr comprelucasive incomerlass) atributable to PepsiCo Balance, cod 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 ircxime attributable to noncantralling interest Disinbutions to mancatalling interests Currency translation adjustment Othernet Balance, end of year Total Equity 52,839 (1) 52,518 50,472 (1.3,919) (13,319 (11.669 862 (13,057) (600) (13,919) (2.650) (13.319) (438) (18) (31,468) ( (2,000) (29,185 (3,000) (378) (52) ) (4,999) 10 708 2 712 12 794 (446) (438) (418 (32,757) 11,045 121.468 11.246 5 (29,185 12.068 104 51 (62) 110 49 107 50 (55) 4 (2) 104 (1) 92 10,981 107 12,030 S 5 11.199 5 (a) Includes total tax benefits of S110 million in 2016 and 107 millioa in 2015. See accompanying notes to be consolidated financial statements 83 Nortalidated in Statement 4:47 PM Fri Sep 11 . 56% +). annuaireports.com 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 income To.. 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 S 35,410 13,256 22,154 12,496 2.157 2,157 7,501 677 841 1,071 Luca (1,666) 2 6,742 5,560 1,182 101 1.283 35 $ 41,863 16,465 25,398 15.262 1,510 8,626 64 642 733 025 835 (1,234 8,136 1,586 6,550 S 44,294 17.482 26,812 16,427 1,657 8,728 613 056 856 489 100 631 9,605 2.239 7,366 6.550 7,366 15 23 S 1,248 $ 6,527 S 7,351 S Basic net income per share from continuing operations! 0.28 $ 1.51 S 1.69 Basic net income per share from discontinued operations 0.02 BASIC NET INCOME PER SHARE S 0.29 $ 1.51 S 1.69 Diluted net income per share from continuing operations! S 0.27 $ 1.49 S 1.67 Diluted net income per share from discontinued operations 0.02 DILUTED NET INCOME PER SHARE S 0.29 $ 1.49 S 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 noncontrolling interests. Per share amounts do not add due to rounding Refer to Notes to Consolidated Financial Statements. 72 4:47 PM Fri Sep 11 . 56% +). A annuaireports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2017 2016 2015 $ 1,283 $ 6,550 $ 7,366 861 (626) (3,959) (382) 142 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 17 322 (53) 5.506 (684) 86 2,951 2.221 73 10 (3) $ 2,148 $ 5,496 S 2,954 Refer to Notes to Consolidated Financial Statements. 73 4:47 PM Fri Sep 11 . 56% +). annualreports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 2017 2016 S 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 16.2001 989 4,248 10,635 6,097 3,676 10,629 726 S 87.270 $ 87,896 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 VIAL Marketable securities Trade accounts receivable, less allowances of $477 and S466, 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 TA TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debu 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, al 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 S 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) 1,760 14.993 65.502 (11,205) (47,988 23.062 158 23,220 S 87,270 17,072 1,905 18,977 $ 87,896 Refer to Notes to Consolidated Financial Statements. 74 4:47 PM Fri Sep 11 . 56% +). A annualroports.com 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) ) (628) ) 281 1,459 1,218 (269) () 3,529 6,995 6.550 1,787 258 (856) (449) 158 158 1,146 647 (224) 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 Nel 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 Issuances of de 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 t 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 TOF EXC EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS Net increase (decrease) during the year Balance at heginning 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) 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) (6.320) (91) (7,409) Net 111 (65) (38) 8 EFFECT 242 (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. 75 4:47 PM Fri Sep 11 . 56% +). A annualreports.com THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY 2017 2016 2015 4,288 4,324 53 50 (82) (86) 4,259 4,288 $ 1,760 S 1,760 4.366 44 (86) 4.324 S 1.760 14,993 14,016 655 589 13.154 532 94 236 130 258 219 (3) 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 ce 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 en er 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 OTAL 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 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) ( (10,174) 900 (1,031) (10,305) (11,205) (5,777) (4,397) (10,174) (47,988) (45,066) 909 811 (3,598) (3,733) (50,677) (47.988) $ 17,072 S 23,062 (42,225) 696 (3,537) (45,066) S 25.554 S 158 S 35 38 (15) 210 23 (13) (25) 1 1 241 15 (18) (31) (3) (3 1,805 (157) 41 $ 1,905 S (34) (4) 158 6 S 210 Refer to Notes to Consolidated Financial Statements. 76 4:55 PM Fri Sep 11 . 59%) annuaireports.com Consolidated Statement of Income PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions except per share amounts) 2017 2016 $ 63,525 $ 62,799 $ 28,785 28,209 34,740 34,590 24,231 24,805 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 Basie Diluted Weighted-average common shares outstanding Basic Diluted Cash dividends declared per common share 10,509 (1,151) 244 9,602 4,694 4,908 51 4.857 $ 9,785 (1,342) 110 8,553 2,174 6,379 SO 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 S S $ 3.40 $ 3.38 $ 4.39 $ 4.36 $ 3.71 3.67 1,425 1.438 $ 3.1675 $ 1,439 1,452 2.96 $ 1,469 1,485 2.7625 See accompanying notes to the consolidated financial statements. 79 4:55 PM Fri Sep 11 .@ 59% annuaireports.com 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 S 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 1,109 (36) (159) (68) 16 862 5,770 (302) 46 (316) (24) (2.827) 3 171 1 (596) 5,783 (2,652) 2.849 Comprehensive income Comprehensive income attributable to noncontrolling interests Comprehensive Income Attributable to PepsiCo (51) 5,719 (54) 5,729 (47) 2,802 See accompanying notes to the consolidated financial statements. 80 Consolidated Statement of Cash Flows 4:55 PM Fri Sep 11 . 59% +) A annuaireports.com 99 of 172 Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions) 2017 2016 2015 S 4,908 S 6,379 s 2.368 284 292 295 (113) (125) 373 Operating Activities Net income Depreciation and amortization Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges Charges related to the transaction with Tingyi Venezuela impairment charges Pension and retiree medical plan expenses Pension and retiree medical plan contributions Deferred income taxes and other tax charges and credits Provisional net tax expense related to the TCJ Act Change in ussets and liabilities: Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable and other current liabilities Income taxes payable Other, net Net Cash Provided by Operating Activities 5.501 2.416 295 230 (208) 73 1.359 467 (205) 78 221 () (220) 619 2,451 501 (699) 452 (168) 20 201 (338) (341) 9,994 (349) (75) 10 997 329 64 10,673 (461) (244) (50) 1,692 55 10,864 (2,969) 180 (61) (3,040) 99 (212) (2,758) 86 (86) 267 85 76 Investing Activities Capital spending Sales of property, plant and equipment Acquisitions and investments in noncontrolled affiliates Reduction of cash due to Venezuela deconsolidation Divestitures Short-term investments, by original maturity More than three months - purchases More than three months - maturities More than three months - sales Three months or less, net Other investing, net Net Cash Used for Investing Activities (12,504) 8.399 (4,428) 4.111 (18,385) 15,744 790 2 29 (4,403) 3 (5) 5 (7,148) 7,509 (4,406) 7,818 (3,105) (2,504) 8,702 (4.095) IS Financing Activities Proceeds from issuances of long-term debt Payments of long-term debt 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 Shure repurchases - preferred Proceeds from exercises of stock options Withholding tax payments on RSUS, PSUs and PEPunits converted Other financing Net Cash Used for Financing Activities Effect of exchange rate changes on cash and cash equivalents Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year 91 (128) (1,016) (4,472) (2,000) (5) 462 (145) (76) (4,186) 47 1,452 9,158 10,610 S 59 (27) 1,SOS (4,227) (3.00) (7) 465 (130) (58) (3,211) (252) 62 9.096 9.158S $3 (4,040) (5.000) (5) 504 (151) (52) (4,112) (221) 2.962 6,134 See accompanying notes to the consolidated financial statements. 81 4:55 PM Fri Sep 11 . 59% +) annuaireports.com Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 30, 2017 and December 31, 2016 (in millions except per share amounts) 2017 2016 S 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 Investments in Noncontrolled A Miliates Other Assets Total Assets 10,610 8,900 0,900 7,024 2,947 1,546 31.027 17,240 ":-* 1,268 1.100 14,744 12,570 27,314 2,042 913 79,804 9,158 6,967 6,694 w 2,723 4112 908 26.450 20.430 16.591 10,391 1,237 1.23 14.430 12.196 26,626 1,950 636 73,490 S S S S 6,892 14,243 21,135 5,485 15,017 20,502 33,796 11,283 3.242 68,823 30.053 6,669 4,434 62,291 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 kepurchas PepsiCo Common Shareholders' Equity Common stock, par value 11s per share (authorized 3,000 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 (197) 41 (192) 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 S S See accompanying notes to the consolidated financial statements. 82 Consolidated Statement of Eau 4:56 PM Fri Sep 11 . 59%): Apple Pencil 100% Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in millions) 2017 Shares 0.8 S Amount 41 2016 Shares 0.5 0.85 Amount 41 2015 Shares 0.8 5. Amount 41 (0.7) (0.7) (192) (5) (197) () (186) (6) (192) (181) (5) (186) (0.3 (0.7) 10.7 24 24 1,428 (8) 1,420 1.448 (20) 1,428 1.488 (40) 1.448 25 (1) 24 4,091 290 4,076 289 4,115 299 (236) (182) (145) (130) 16) 4,091 (151) (S) 4,076 3,996 52,518 4,857 (4,536) 50,472 6.329 49.092 5.452 (4,071) Preferred Stock Repurchased Preferred Stock Balance, beginning of year Redemptions Balance, end of your Common Stock Balance, beginning of year Change in repurchased common stock Balance, cod 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 PEPunits converted Other Balance, end of year Retained Earnings Balance, beginning of year Net income attributable to PepsiCo Cash dividends declared - common Cash chvilends cleclared preferred Balance, end of year Accumulated Other Comprehensive Loss Balance, beginning of your Ollscr comprelucasive incomerlass) atributable to PepsiCo Balance, cod 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 ircxime attributable to noncantralling interest Disinbutions to mancatalling interests Currency translation adjustment Othernet Balance, end of year Total Equity 52,839 (1) 52,518 50,472 (1.3,919) (13,319 (11.669 862 (13,057) (600) (13,919) (2.650) (13.319) (438) (18) (31,468) ( (2,000) (29,185 (3,000) (378) (52) ) (4,999) 10 708 2 712 12 794 (446) (438) (418 (32,757) 11,045 121.468 11.246 5 (29,185 12.068 104 51 (62) 110 49 107 50 (55) 4 (2) 104 (1) 92 10,981 107 12,030 S 5 11.199 5 (a) Includes total tax benefits of S110 million in 2016 and 107 millioa in 2015. See accompanying notes to be consolidated financial statements 83 Nortalidated in Statement
