Accounting homework help. C Specimen Financial Statements: The Coca-Cola Company
The Coca-Cola Company is the world’s largest beverage company. It owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages, but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now available in more than 200 countries. To access Coca-Cola’s complete annual report, including notes to the financial statements, follow these steps:
- Go to http://www.coca-colacompany.com/investors/.
- Select Financial Reports and Information and then click on 2014 Annual Report on Form 10-K.
- The Notes to Consolidated Financial Statements begin on page 78.
| THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME | |||
| Year Ended December 31, | 2014 | 2013 | 2012 |
| (In millions except per share data) | |||
| NET OPERATING REVENUES | $ 45,998 | $ 46,854 | $ 48,017 |
| Cost of goods sold | 17,889 | 18,421 | 19,053 |
| GROSS PROFIT | 28,109 | 28,433 | 28,964 |
| Selling, general and administrative expenses | 17,218 | 17,310 | 17,738 |
| Other operating charges | 1,183 | 895 | 447 |
| OPERATING INCOME | 9,708 | 10,228 | 10,779 |
| Interest income | 594 | 534 | 471 |
| Interest expense | 483 | 463 | 397 |
| Equity income (loss) — net | 769 | 602 | 819 |
| Other income (loss) — net | (1,263) | 576 | 137 |
| INCOME BEFORE INCOME TAXES | 9,325 | 11,477 | 11,809 |
| Income taxes | 2,201 | 2,851 | 2,723 |
| CONSOLIDATED NET INCOME | 7,124 | 8,626 | 9,086 |
| Less: Net income attributable to noncontrolling interests | 26 | 42 | 67 |
| NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 7,098 | $ 8,584 | $ 9,019 |
| BASIC NET INCOME PER SHARE1 | $ 1.62 | $ 1.94 | $ 2.00 |
| DILUTED NET INCOME PER SHARE1 | $ 1.60 | $ 1.90 | $ 1.97 |
| AVERAGE SHARES OUTSTANDING | 4,387 | 4,434 | 4,504 |
| Effect of dilutive securities | 63 | 75 | 80 |
| AVERAGE SHARES OUTSTANDING ASSUMING DILUTION | 4,450 | 4,509 | 4,584 |
1Calculated based on net income attributable to shareowners of The Coca-Cola Company.
| THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
| Year Ended December 31, | 2014 | 2013 | 2012 |
| (In millions) | |||
| CONSOLIDATED NET INCOME | $ 7,124 | $ 8,626 | $ 9,086 |
| Other comprehensive income: | |||
| Net foreign currency translation adjustment | (2,382) | (1,187) | (182) |
| Net gain (loss) on derivatives | 357 | 151 | 99 |
| Net unrealized gain (loss) on available-for-sale securities | 714 | (80) | 178 |
| Net change in pension and other benefit liabilities | (1,039) | 1,066 | (668) |
| TOTAL COMPREHENSIVE INCOME | 4,774 | 8,576 | 8,513 |
| Less: Comprehensive income (loss) attributable to noncontrolling interests | 21 | 39 | 105 |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY |
$ 4,753 | $ 8,537 | $ 8,408 |
| THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||
| December 31, | 2014 | 2013 |
| (In millions except par value) | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 8,958 | $ 10,414 |
| Short-term investments | 9,052 | 6,707 |
| TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 18,010 | 17,121 |
| Marketable securities | 3,665 | 3,147 |
| Trade accounts receivable, less allowances of $331 and $61, respectively | 4,466 | 4,873 |
| Inventories | 3,100 | 3,277 |
| Prepaid expenses and other assets | 3,066 | 2,886 |
| Assets held for sale | 679 | — |
| TOTAL CURRENT ASSETS | 32,986 | 31,304 |
| EQUITY METHOD INVESTMENTS | 9,947 | 10,393 |
| OTHER INVESTMENTS | 3,678 | 1,119 |
| OTHER ASSETS | 4,407 | 4,661 |
| PROPERTY, PLANT AND EQUIPMENT — net | 14,633 | 14,967 |
| TRADEMARKS WITH INDEFINITE LIVES | 6,533 | 6,744 |
| BOTTLERS’ FRANCHISE RIGHTS WITH INDEFINITE LIVES | 6,689 | 7,415 |
| GOODWILL | 12,100 | 12,312 |
| OTHER INTANGIBLE ASSETS | 1,050 | 1,140 |
| TOTAL ASSETS | $ 92,023 | $ 90,055 |
| LIABILITIES AND EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued expenses | $ 9,234 | $ 9,577 |
| Loans and notes payable | 19,130 | 16,901 |
| Current maturities of long-term debt | 3,552 | 1,024 |
| Accrued income taxes | 400 | 309 |
| Liabilities held for sale | 58 | — |
| TOTAL CURRENT LIABILITIES | 32,374 | 27,811 |
| LONG-TERM DEBT | 19,063 | 19,154 |
| OTHER LIABILITIES | 4,389 | 3,498 |
| DEFERRED INCOME TAXES | 5,636 | 6,152 |
| THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY | ||
| Common stock, $0.25 par value; Authorized — 11,200 shares; | ||
| Issued — 7,040 and 7,040 shares, respectively | 1,760 | 1,760 |
| Capital surplus | 13,154 | 12,276 |
| Reinvested earnings | 63,408 | 61,660 |
| Accumulated other comprehensive income (loss) | (5,777) | (3,432) |
| Treasury stock, at cost — 2,674 and 2,638 shares, respectively | (42,225) | (39,091) |
| EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 30,320 | 33,173 |
| EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 241 | 267 |
| TOTAL EQUITY | 30,561 | 33,440 |
| TOTAL LIABILITIES AND EQUITY | $ 92,023 | $ 90,055 |
| THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| Year Ended December 31, | 2014 | 2013 | 2012 |
| (In millions) | |||
| OPERATING ACTIVITIES | |||
| Consolidated net income | $ 7,124 | $ 8,626 | $ 9,086 |
| Depreciation and amortization | 1,976 | 1,977 | 1,982 |
| Stock-based compensation expense | 209 | 227 | 259 |
| Deferred income taxes | (40) | 648 | 632 |
| Equity (income) loss — net of dividends | (371) | (201) | (426) |
| Foreign currency adjustments | 415 | 168 | (130) |
| Significant (gains) losses on sales of assets — net | 831 | (670) | (98) |
| Other operating charges | 761 | 465 | 166 |
| Other items | 149 | 234 | 254 |
| Net change in operating assets and liabilities | (439) | (932) | (1,080) |
| Net cash provided by operating activities | 10,615 | 10,542 | 10,645 |
| INVESTING ACTIVITIES | |||
| Purchases of investments | (17,800) | (14,782) | (14,824) |
| Proceeds from disposals of investments | 12,986 | 12,791 | 7,791 |
| Acquisitions of businesses, equity method investments and nonmarketable securities | (389) | (353) | (1,486) |
| Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 148 | 872 | 20 |
| Purchases of property, plant and equipment | (2,406) | (2,550) | (2,780) |
| Proceeds from disposals of property, plant and equipment | 223 | 111 | 143 |
| Other investing activities | (268) | (303) | (268) |
| Net cash provided by (used in) investing activities | (7,506) | (4,214) | (11,404) |
| FINANCING ACTIVITIES | |||
| Issuances of debt | 41,674 | 43,425 | 42,791 |
| Payments of debt | (36,962) | (38,714) | (38,573) |
| Issuances of stock | 1,532 | 1,328 | 1,489 |
| Purchases of stock for treasury | (4,162) | (4,832) | (4,559) |
| Dividends | (5,350) | (4,969) | (4,595) |
| Other financing activities | (363) | 17 | 100 |
| Net cash provided by (used in) financing activities | (3,631) | (3,745) | (3,347) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (934) | (611) | (255) |
| CASH AND CASH EQUIVALENTS | |||
| Net increase (decrease) during the year | (1,456) | 1,972 | (4,361) |
| Balance at beginning of year | 10,414 | 8,442 | 12,803 |
| Balance at end of year | $ 8,958 | $ 10,414 | $ 8,442 |
| THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS’ EQUITY | |||
| Year Ended December 31, | 2014 | 2013 | 2012 |
| (In millions except per share data) | |||
| EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING |
|||
| Balance at beginning of year | 4,402 | 4,469 | 4,526 |
| Purchases of treasury stock | (98) | (121) | (121) |
| Treasury stock issued to employees related to stock compensation plans | 62 | 54 | 64 |
| Balance at end of year | 4,366 | 4,402 | 4,469 |
| COMMON STOCK | $ 1,760 | $ 1,760 | $ 1,760 |
| CAPITAL SURPLUS | |||
| Balance at beginning of year | 12,276 | 11,379 | 10,332 |
| Stock issued to employees related to stock compensation plans | 526 | 569 | 640 |
| Tax benefit (charge) from stock compensation plans | 169 | 144 | 144 |
| Stock-based compensation | 209 | 227 | 259 |
| Other activities | (26) | (43) | 4 |
| Balance at end of year | 13,154 | 12,276 | 11,379 |
| REINVESTED EARNINGS | |||
| Balance at beginning of year | 61,660 | 58,045 | 53,621 |
| Net income attributable to shareowners of The Coca-Cola Company | 7,098 | 8,584 | 9,019 |
| Dividends (per share — $1.22, $1.12 and $1.02 in 2014, 2013 and 2012, respectively) | (5,350) | (4,969) | (4,595) |
| Balance at end of year | 63,408 | 61,660 | 58,045 |
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||
| Balance at beginning of year | (3,432) | (3,385) | (2,774) |
| Net other comprehensive income (loss) | (2,345) | (47) | (611) |
| Balance at end of year | (5,777) | (3,432) | (3,385) |
| TREASURY STOCK | |||
| Balance at beginning of year | (39,091) | (35,009) | (31,304) |
| Stock issued to employees related to stock compensation plans | 891 | 745 | 786 |
| Purchases of treasury stock | (4,025) | (4,827) | (4,491) |
| Balance at end of year | (42,225) | (39,091) | (35,009) |
| TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 30,320 | $ 33,173 | $ 32,790 |
| EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
| Balance at beginning of year | $ 267 | $ 378 | $ 286 |
| Net income attributable to noncontrolling interests | 26 | 42 | 67 |
| Net foreign currency translation adjustment | (5) | (3) | 38 |
| Dividends paid to noncontrolling interests | (25) | (58) | (48) |
| Acquisition of interests held by noncontrolling owners | — | (34) | (15) |
| Contributions by noncontrolling interests | — | 6 | — |
| Business combinations | (22) | 25 | 50 |
| Deconsolidation of certain entities | — | (89) | — |
| TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | $ 241 | $ 267 | $ 378 |
