Coca Cola 2015 Annual Report Download

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(Exact name of Registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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(Zip Code)
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___________________________________________________
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No o
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No ý
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such
files). Yes ý No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large
accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ý
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
(Do not check if a smaller reporting company)
Indicate by check mark if the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The aggregate market value of the common equity held by non-affiliates of the Registrant (assuming for these purposes, but without conceding, that all executive officers and Directors
are "affiliates" of the Registrant) as of July 3, 2015, the last business day of the Registrant's most recently completed second fiscal quarter, was $170,318,198,405 (based on the closing
sale price of the Registrant's Common Stock on that date as reported on the New York Stock Exchange).
The number of shares outstanding of the Registrant's Common Stock as of February 22, 2016, was 4,329,497,778.
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Portions of the Company's Proxy Statement for the Annual Meeting of Shareowners to be held on April 27, 2016, are incorporated by reference in Part III.

Table of contents

  • Page 1
    ...) as of July 3, 2015, the last business day of the Registrant's most recently completed second fiscal quarter, was $170,318,198,405 (based on the closing sale price of the Registrant's Common Stock on that date as reported on the New York Stock Exchange). The number of shares outstanding of the...

  • Page 2
    ... Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information Directors, Executive Officers...

  • Page 3
    ... financial statements. General The Coca-Cola Company is the world's largest beverage company. We own or license and market 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...

  • Page 4
    ... business in this report is presented on a consolidated basis. Effective January 1, 2016, we transferred Coca-Cola Refreshments' ("CCR") bottling and associated supply chain operations in the United States and Canada from our North America segment to our Bottling Investments segment. For financial...

  • Page 5
    ... our bottling partners. Schweppes is owned by the Company in certain countries other than the United States. 4 Minute Maid Pulpy is a juice drink brand sold primarily in Asia Pacific. 5 6 Simply is a juice and juice drink brand sold in North America. Gold Peak is primarily a tea brand sold in North...

  • Page 6
    ...partners or other customers. Unit case volume and concentrate sales volume growth rates are not necessarily equal during any given period. Factors such as seasonality, bottlers' inventory practices, supply point changes, timing of price increases, new product introductions and changes in product mix...

  • Page 7
    The Coca-Cola system sold 29.2 billion, 28.6 billion and 28.2 billion unit cases of our products in 2015, 2014 and 2013, respectively. The unit case volume for 2015 and 2014 reflects the impact of the transfer of distribution rights with respect to non-Company-owned brands that were previously ...

  • Page 8
    ..., as applicable. Bottlers that accounted for 0.3 percent of U.S. unit case volume in 2015 operate under our oldest form of contract, which provides for a fixed price for Coca-Cola syrup used in bottles and cans. This price is subject to quarterly adjustments to reflect changes in the quoted price of...

  • Page 9
    ... unit case volume, net revenues and profits at the bottler level, which in turn generate increased concentrate sales for our Company's concentrate and syrup business. When this occurs, both we and our bottling partners benefit from long-term growth in volume and improved cash flows. When our equity...

  • Page 10
    ... and local companies and, in some markets, against retailers that have developed their own store or private label beverage brands. Competitive factors impacting our business include, but are not limited to, pricing, advertising, sales promotion programs, product innovation, increased efficiency in...

  • Page 11
    ..., production, transportation, distribution, advertising, labeling and sale of many of our Company's products and their ingredients are subject to the Federal Food, Drug, and Cosmetic Act; the Federal Trade Commission Act; the Lanham Act; state consumer protection laws; competition laws; federal...

  • Page 12
    ... bottling partners. For more information about the North America refranchising transactions, refer to Note 2 of Notes to Consolidated Financial Statements set forth in Part II, "Item 8. Financial Statements and Supplementary Data" of this report. As of December 31, 2015 and 2014, our Company...

  • Page 13
    ... major beer companies. Our beverage products also compete against private label brands developed by retailers, some of which are Coca-Cola system customers. Our ability to gain or maintain share of sales in the global market or in various local markets may be limited as a result of actions by...

  • Page 14
    ... may seek lower prices from us and our bottling partners, may demand increased marketing or promotional expenditures, and may be more likely to use their distribution networks to introduce and develop private label brands, any of which could negatively affect the Coca-Cola system's profitability. In...

  • Page 15
    .... Such actions could, in the long run, have an adverse effect on our profitability. If our bottling partners' financial condition deteriorates, our business and financial results could be affected. We derive a significant portion of our net operating revenues from sales of concentrates and syrups to...

  • Page 16
    ... could have a material adverse impact on the Company's financial position, results of operations or cash flows. Increased or new indirect taxes in the United States or in one or more of our other major markets could negatively affect our business. Our business operations are subject to numerous...

  • Page 17
    ... or our bottling partners' ingredients, other raw materials and packaging materials, to the extent they cannot be recouped through increases in the prices of finished beverage products, would increase our and the Coca-Cola system's operating costs and could reduce our profitability. Increases in the...

  • Page 18
    ... of the Company, loss of opportunities to acquire or divest of businesses or brands and loss of ability to commercialize products developed through research and development efforts and, therefore, could have a negative impact on net operating revenues. In addition, we may suffer financial and...

  • Page 19
    ... water availability for the Coca-Cola system's bottling operations. Increased frequency or duration of extreme weather conditions could also impair production capabilities, disrupt our supply chain or impact demand for our products. As a result, the effects of climate change could have a long-term...

  • Page 20
    ... costs on commercial water use due to local water scarcity concerns, may result in increased compliance costs, capital expenditures and other financial obligations for us and our bottling partners, which could affect our profitability, or may impede the production, distribution, marketing and sale...

  • Page 21
    ... terms may be negatively affected, which could affect our and the Coca-Cola system's profitability as well as our share of the income of bottling partners in which we have equity method investments. A decrease in availability of consumer credit resulting from unfavorable credit market conditions...

  • Page 22
    ...our net operating revenues and could expose us to customer claims. Furthermore, from time to time we and our bottling partners restructure manufacturing and other operations to improve productivity. Restructuring activities and the announcement of plans for future restructuring activities may result...

  • Page 23
    ...timely, on favorable terms and with partners who share our longterm vision for the Coca-Cola system, our business and results of operations could be adversely affected. If we are unable to successfully manage the possible negative consequences of our productivity initiatives, our business operations...

  • Page 24
    ...-acre office complex in Atlanta, Georgia. The complex includes our 621,000 square foot headquarters building and an 870,000 square foot building in which our North America group's main offices are located. The complex also includes several other buildings, including our 264,000 square foot Coca-Cola...

  • Page 25
    ... time, the Company purchased over $400 million of insurance coverage, which also insures Aqua-Chem for some of its prior and future costs for certain product liability and other claims. The Company sold Aqua-Chem to Lyonnaise American Holding, Inc., in 1981 under the terms of a stock sale agreement...

  • Page 26
    ... Regional Manager, CocaCola Spain. In January 2000, he was appointed President of the Iberia Business Unit and served in that role until his appointment to the position of Chief Marketing Officer effective January 1, 2015. He also served as Vice President, Europe Group from May 2007 to December 2012...

  • Page 27
    ... Coca-Cola North America. From March 2009 to July 2009, he served as Vice President, Commercial Leadership, Still Beverages. From August 2009 to December 2010, he served as President and General Manager, Active Lifestyles Brands. From January 2011 to April 2012, he served as Chief Strategy Officer...

  • Page 28
    ... was elected to his current positions in August 2015. Atul Singh, 56, is President of the Asia Pacific Group. Mr. Singh joined the Company in 1998 as Vice President, Operations of the India Division. In 2001, he moved to the China Division and served as Region Manager of East China from 2001 to 2002...

  • Page 29
    ... was named to his current position. Kathy N. Waller, 57, is Executive Vice President and Chief Financial Officer of the Company. Ms. Waller joined the Company in 1987 as a senior accountant in the Accounting Research Department and has served in a number of accounting and finance roles of increasing...

  • Page 30
    ... low market prices per share for the Company's common stock, as reported on the New York Stock Exchange composite tape, and dividend per share information: Common Stock Market Prices High Low Dividends Declared 2015 Fourth quarter Third quarter Second quarter First quarter 2014 Fourth quarter Third...

  • Page 31
    ... 500 million shares of our Company's common stock. This column discloses the number of shares purchased pursuant to the 2012 Plan during the indicated time periods (including shares purchased pursuant to the terms of preset trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act...

  • Page 32
    Performance Graph Comparison of Five-Year Cumulative Total Return Tmong The Coca-Cola Company, the Peer Group Index and the S&P 500 Index Total Return Stock Price Plus Reinvested Dividends December 31, 2010 2011 2012 2013 2014 2015 The Coca-Cola Company Peer Group Index S&P 500 Index $ 100...

  • Page 33
    .... Year Ended December 31, (In millions except per share data) 2015 2014 2013 2012 2011 SUMMTRY OF OPERTTIONS Net operating revenues Net income attributable to shareowners of The Coca-Cola Company PER SHTRE DTTT Basic net income Diluted net income Cash dividends BTLTNCE SHEET DTTT Total assets Long...

  • Page 34
    ... Business General The Coca-Cola Company is the world's largest beverage company. We own or license and market 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...

  • Page 35
    ... operations: Year Ended December 31, 2015 2014 2013 Concentrate operations1 Finished product operations2 Total 1 73% 27 100% 73% 27 100% 72% 28 100% Includes unit case volume related to concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups...

  • Page 36
    ... and increase consumer preference for, our brands. Successful marketing investments produce long-term growth in unit case volume, per capita consumption and our share of worldwide nonalcoholic beverage sales. Through our relationships with our bottling partners and those who sell our products in the...

  • Page 37
    ... helpful and credible partner in the fight against obesity. Across the Coca-Cola system, we are mobilizing our assets in marketing and in community outreach to increase awareness and spur action. Water Quality and Quantity Water quality and quantity is an issue that increasingly requires our Company...

  • Page 38
    ...joint efforts with farmers, communities, bottlers, suppliers and key partners, as well as our increased and continued investment in sustainable agriculture, we can together help make a positive strategic impact on food security. All of these challenges and risks - obesity; water quality and quantity...

  • Page 39
    ... are accounted for as consolidated entities. Recoverability of Current and Noncurrent Assets Our Company faces many uncertainties and risks related to various economic, political and regulatory environments in the countries in which we operate, particularly in developing or emerging markets. Refer...

  • Page 40
    ... impacted by our current business environment and are discussed throughout this report, as appropriate. Investments in Equity and Debt Securities The carrying values of our investments in equity securities are determined using the equity method, the cost method or the fair value method. We account...

  • Page 41
    ... closing prices of publicly traded shares, and our Company's cost basis in investments in publicly traded companies accounted for under the equity method (in millions): December 31, 2015 Fair Value Carrying Value Difference Monster Beverage Corporation Coca-Cola FEMSA, S.A.B. de C.V. Coca-Cola...

  • Page 42
    ... Assets Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. Additionally, our Company advances payments to certain customers for distribution rights as well as to fund future marketing activities...

  • Page 43
    ... increase or decrease based on market conditions and trends, regardless of whether our Company's actual cost of capital has changed. Therefore, if the cost of capital and/or discount rates change, our Company may recognize an impairment of an intangible asset in spite of realizing actual cash flows...

  • Page 44
    ...cash flow analyses, to the current carrying value. Additionally, the remaining charge of $82 million related to goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions and volume performance. The total...

  • Page 45
    ... in 2015 of $169 million, the new method to calculate service and interest costs described above, an increase in the weighted-average discount rate used to calculate the Company's benefit obligations and the impact of $471 million of contributions the Company made in early 2016 to U.S. pension plans...

  • Page 46
    ... tax rates used to determine deferred tax assets or liabilities are the enacted tax rates in effect for the year and manner in which the differences are expected to reverse. Based on the evaluation of all available information, the Company recognizes future tax benefits, such as net operating loss...

  • Page 47
    ... finished product operations in our North America operating segment, typically generate net operating revenues by selling sparkling beverages and a variety of still beverages, such as juices and juice drinks, energy and sports drinks, ready-to-drink teas and coffees, and certain water products, to...

  • Page 48
    ... sales from the base year when calculating volume growth rates on a consolidated basis as well as for the North America operating segment. Refer to the headings "Beverage Volume" and "Net Operating Revenues" below. In 2014, the Company made a decision to change our process of buying and selling...

  • Page 49
    ... not sell concentrates or syrups may give rise to differences between unit case volume and concentrate sales volume growth rates. Information about our volume growth by operating segment is as follows: Percent Change 2015 vs. 2014 Year Ended December 31, Unit Cases1,2 Concentrate Sales 2014 vs. 2013...

  • Page 50
    ...by the group's performance in packaged water, teas, sports drinks and the expansion of the innocent brand. The group's sparkling beverage growth included 9 percent growth in Coca-Cola Zero and 4 percent growth in Trademark Fanta. Unit case volume in Latin America grew 1 percent as a result of growth...

  • Page 51
    ... the Company does not sell concentrates, syrups, beverage bases or powders. Analysis of Consolidated Statements of Income Percent Change Year Ended December 31, (In millions except percentages and per share data) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013 NET OPERTTING REVENUES Cost of goods sold...

  • Page 52
    ... segments. Refer to the heading "Liquidity, Capital Resources and Financial Position - Foreign Exchange" below. Net operating revenue growth rates are impacted by sales volume; acquisitions and divestitures; price, product and geographic mix; and foreign currency fluctuations. The size and timing...

  • Page 53
    ... impact of key factors resulting in the increase (decrease) in net operating revenues for each of our operating segments: Percent Change 2014 vs. 2013 Volume1 Acquisitions & Divestitures Price, Product & Geographic Mix Currency Fluctuations Total Consolidated Eurasia & Africa Europe Latin America...

  • Page 54
    ... line item cost of goods sold in our consolidated statements of income. Refer to Note 5 of Notes to Consolidated Financial Statements. We do not currently expect changes in commodity costs to have a significant impact on our 2016 gross profit margin as compared to 2015. Year Ended December 31, 2015...

  • Page 55
    ... in 2015 of $169 million, the new method to calculate service and interest costs, an increase in the weighted-average discount rate used to calculate the Company's benefit obligations and the impact of $471 million of contributions the Company made in early 2016 to U.S. pension plans. The impact of...

  • Page 56
    ... primarily due to changes in exchange rates as a result of the establishment of the new open market exchange system. Refer to Note 18 of Notes to Consolidated Financial Statements for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note...

  • Page 57
    ... Financial Statements. Operating Income and Operating Margin Information about our operating income contribution by operating segment on a percentage basis is as follows: Year Ended December 31, 2015 2014 2013 Eurasia & Africa Europe Latin America North America Asia Pacific Bottling Investments...

  • Page 58
    ...heading "Liquidity, Capital Resources and Financial Position - Foreign Exchange" below. During the year ended December 31, 2015, the Company's operating income was unfavorably impacted by the refranchising of additional territories in North America and the sale of the Company's energy brands as part...

  • Page 59
    ... to Consolidated Financial Statements for additional information on the write-down of receivables. The impact of these items was partially offset by favorable price mix in all of the segment's business units. North America's operating income for the years ended December 31, 2014 and 2013 was $2,447...

  • Page 60
    ... Resources and Financial Position - Cash Flows from Financing Activities - Debt Financing" below for additional information related to the Company's long-term debt. Equity Income (Loss) - Net Year Ended December 31, 2015 versus Year Ended December 31, 2014 Equity income (loss) - net represents our...

  • Page 61
    ...the payment of dividends. As such, the Company remeasured the net assets related to its operations in Venezuela using the current SIMADI rate. Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on the Monster Transaction and North America refranchising. Refer to...

  • Page 62
    ... federal tax rate and our effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 Statutory U.S. federal tax rate State and local income taxes - net of federal benefit Earnings in jurisdictions taxed at rates different from the statutory U.S. federal tax rate Equity income or loss...

  • Page 63
    ...tax laws, the Company's effective tax rate in 2016 is expected to be 22.5 percent before considering the effect of any unusual or special items that may affect our tax rate. Liquidity, Capital Resources and Financial Position We believe our ability to generate cash flows from operating activities is...

  • Page 64
    ... Review - Net Operating Revenues" above for additional information on the impact of foreign currency fluctuations. Cash Flows from Investing Activities Our cash flows provided by (used in) investing activities are summarized as follows (in millions): Year Ended December 31, 2015 2014 2013 Purchases...

  • Page 65
    ... by the Company, but distributed by CCR, to certain unconsolidated bottling partners as part of the North America refranchising. Refer to Note 2 of Notes to Consolidated Financial Statements for additional information. In 2013, proceeds from disposals of businesses, equity method investments and...

  • Page 66
    ...business and further enhance our operational effectiveness. Other Investing Activities In 2015, cash used in other investing activities included a $530 million payment related to the Monster Transaction, partially offset by the cash flow impact of the Company's derivative contracts designated as net...

  • Page 67
    ... Company. Our global presence and strong capital position give us access to key financial markets around the world, enabling us to raise funds at a low effective cost. This posture, coupled with active management of our mix of short-term and long-term debt and our mix of fixed-rate and variable-rate...

  • Page 68
    ...'s common stock on October 18, 2012 ("2012 Plan"). The 2012 Plan allowed the Company to continue repurchasing shares following the completion of the prior program. The table below presents annual shares repurchased and average price per share: Year Ended December 31, 2015 2014 2013 Number of shares...

  • Page 69
    ... cash flows from operating activities and/or short-term borrowings. 4 Refer to Note 14 of Notes to Consolidated Financial Statements for information regarding income taxes. As of December 31, 2015, the noncurrent portion of our income tax liability, including accrued interest and penalties related...

  • Page 70
    ... cash flows from operating activities. Our international pension plans are generally funded in accordance with local laws and income tax regulations. As of December 31, 2015, the projected benefit obligation of the U.S. qualified pension plans was $6,405 million, and the fair value of plan assets...

  • Page 71
    ... rates on our operating results. Our foreign currency management program is designed to mitigate, over time, a portion of the impact of exchange rate changes on our net income and earnings per share. The total currency impacts on net operating revenues, including the effect of our hedging activities...

  • Page 72
    ... the line item other income (loss) - net in our consolidated statement of income. In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net monetary assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are...

  • Page 73
    ... Position The following table illustrates the change in the individual line items of the Company's consolidated balance sheet (in millions): December 31, 2015 2014 Increase (Decrease) Percent Change Cash and cash equivalents Short-term investments Marketable securities Trade accounts receivable...

  • Page 74
    ... time. We use derivative financial instruments to further reduce our net exposure to foreign currency fluctuations. Our Company enters into forward exchange contracts and purchases currency options (principally euros and Japanese yen) and collars to hedge certain portions of forecasted cash flows...

  • Page 75
    ...distribution business. We also use derivative financial instruments to manage our exposure to commodity risks at times. Certain of these derivatives do not qualify for hedge accounting, but they are effective economic hedges that help the Company mitigate the price risk associated with the purchases...

  • Page 76
    ...of Income Consolidated Statements of Comprehensive Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Shareowners' Equity Notes to Consolidated Financial Statements Report of Management Report of Independent Registered Public Accounting Firm Report of...

  • Page 77
    ... OF INCOME Year Ended December 31, (In millions except per share data) 2015 2014 2013 NET OPERTTING REVENUES Cost of goods sold GROSS PROFIT Selling, general and administrative expenses Other operating charges OPERTTING INCOME Interest income Interest expense Equity income (loss) - net Other income...

  • Page 78
    ... INCOME Year Ended December 31, (In millions) 2015 2014 2013 CONSOLIDTTED 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...

  • Page 79
    ... TND SUBSIDITRIES CONSOLIDTTED BTLTNCE SHEETS December 31, (In millions except par value) 2015 2014 TSSETS 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 $352...

  • Page 80
    ... CTSH FLOWS Year Ended December 31, (In millions) 2015 2014 2013 OPERTTING TCTIVITIES Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss - net of dividends Foreign currency adjustments Significant (gains) losses on sales...

  • Page 81
    ... Tax benefit (charge) from stock compensation plans Stock-based compensation Other activities Balance at end of year REINVESTED ETRNINGS Balance at beginning of year Net income attributable to shareowners of The Coca-Cola Company Dividends (per share - $1.32, $1.22 and $1.12 in 2015, 2014 and 2013...

  • Page 82
    ... of Business The Coca-Cola Company is the world's largest beverage company. We own or license and market 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...

  • Page 83
    ...a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair...

  • Page 84
    ... our bottlers that are directed at strengthening our bottling system and increasing unit case volume. The Company also makes advance payments to certain customers for distribution rights. The advance payments made to customers are initially capitalized and included in our consolidated balance sheets...

  • Page 85
    ... handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our consolidated statements of income. During the years ended December 31, 2015, 2014 and 2013, the Company recorded...

  • Page 86
    ... potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. All derivatives are carried at fair value in our consolidated balance sheets in...

  • Page 87
    ... related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible...

  • Page 88
    ... Compensation Our Company sponsors equity plans that provide for the grant of awards including stock options, restricted stock units, restricted stock and performance share units. The fair value of our stock option grants is estimated on the grant date using a Black-Scholes-Merton option-pricing...

  • Page 89
    ...spot rates are recognized in foreign currency translation adjustment, a component of AOCI. Refer to Note 15. Income statement accounts are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting...

  • Page 90
    ... the line item other income (loss) - net in our consolidated statement of income. In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net monetary assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are...

  • Page 91
    ...2015. As a result of the Monster Transaction, (1) the Company purchased newly issued shares of Monster common stock representing approximately 17 percent of the outstanding shares of Monster common stock (after giving effect to the new issuance); (2) the Company sold its global energy drink business...

  • Page 92
    ... have on Monster's operations, and our representation on Monster's Board of Directors, the Company is accounting for its interest in Monster as an equity method investment. As a result of the Monster Transaction, the North America Coca-Cola system obtained the right to distribute Monster products in...

  • Page 93
    ... to purchase these shares, which was included in the line item other financing activities in our consolidated statement of cash flows, resulting in 100 percent ownership of our German bottling operations. Divestitures During 2015, proceeds from disposals of businesses, equity method investments and...

  • Page 94
    ... the sale price of the majority ownership interest. Coca-Cola FEMSA has an option to purchase our remaining ownership interest in the Philippine bottling operations at any time during the seven years following closing based on the initial purchase price plus a defined return. Coca-Cola FEMSA...

  • Page 95
    ... to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreedupon sale price. The Company expects these transactions to close at various times throughout 2016. Coca-Cola European Partners In August 2015, the Company entered into...

  • Page 96
    ... table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheet (in millions): December 31, 2015 December 31, 2014 Cash, cash equivalents and short-term investments Trade accounts receivable, less allowances...

  • Page 97
    ... of December 31, 2015, 2014 and 2013, respectively. The Company's trading securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2015 2014 Marketable securities Other assets Total trading securities Available-for-Sale and Held-to-Maturity...

  • Page 98
    ...-to-maturity securities. The Company's available-for-sale securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2015 2014 Cash and cash equivalents Marketable securities Other investments Other assets Total The contractual maturities of...

  • Page 99
    ... be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our consolidated statements of income as...

  • Page 100
    ... or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates...

  • Page 101
    ... consider the risk of counterparty default to be minimal. Cash Flow Hedging Strategy The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, commodity prices or interest...

  • Page 102
    ... cash flows associated with future purchases of certain commodities. The total notional values of derivatives that have been designated and qualify for this program were $8 million and $9 million as of December 31, 2015 and 2014, respectively. Our Company monitors our mix of short-term debt and long...

  • Page 103
    ... the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the years ended December 31, 2015, 2014 and 2013 (in millions): Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Gain...

  • Page 104
    ...years ended December 31, 2015, 2014 and 2013 (in millions): Gain (Loss) Recognized in Income1 Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income 2015 Interest rate contracts Fixed-rate debt Net impact to interest expense Foreign currency contracts Available-for-sale...

  • Page 105
    ... foreign currency exchange rates. The changes in fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are recognized into earnings in the line items net operating revenues or cost of goods sold in our consolidated statements of income, as applicable. The total...

  • Page 106
    ...This difference is not amortized. A summary of financial information for our equity method investees in the aggregate is as follows (in millions): Year Ended December 31,1 2015 2014 2013 Net operating revenues Cost of goods sold Gross profit Operating income Consolidated net income Less: Net income...

  • Page 107
    ... of the Company's rights to distribute Monster products in expanded territories as a result of the Monster Transaction. The carrying value of these rights as of December 31, 2015 was $640 million. These distribution rights are governed by an agreement with an initial term of 20 years, after which...

  • Page 108
    ...the carrying value of our goodwill by operating segment (in millions): Eurasia & Africa Latin America North America Bottling Investments Europe Asia Pacific Total 2014 Balance as of January 1 Effect of foreign currency translation Acquisitions1 Adjustments related to the finalization of purchase...

  • Page 109
    ... 31, 2015 and 2014, respectively. In addition, we had $9,771 million in lines of credit and other short-term credit facilities as of December 31, 2015. The Company's total lines of credit included $95 million that was outstanding and primarily related to our international operations. Included...

  • Page 110
    ... item interest expense in our consolidated statement of income. These charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair value hedging relationship. The general terms of the notes that were...

  • Page 111
    ... to our Company. The carrying value of the Company's long-term debt included fair value adjustments related to the debt assumed from Coca-Cola Enterprises Inc.'s ("Old CCE") former North America business in 2010 of $411 million and $464 million as of December 31, 2015 and 2014, respectively. These...

  • Page 112
    ... transfer pricing matter involving the appropriate amount of taxable income the Company should report in the United States in connection with its licensing of intangible property to certain related foreign licensees regarding the manufacturing, distribution, sale, marketing and promotion of products...

  • Page 113
    ... statements of income related to awards under these plans was $65 million, $57 million and $62 million in 2015, 2014 and 2013, respectively. Beginning in 2015, certain employees who had previously been eligible for long-term equity awards received long-term performance cash awards. Employees...

  • Page 114
    ... employees. The 2014 Equity Plan allows for grants of stock options, performance share units, restricted stock units, restricted stock and other specified award types including cash awards with performance-based vesting criteria. Beginning in 2015, the 2014 Equity Plan was the primary plan in use...

  • Page 115
    ... criterion used is compound annual growth in economic profit over a predefined performance period, which is generally three years. Economic profit is our net operating profit after tax less the cost of the capital used in our business. Beginning in 2015, the Company added net operating revenues as...

  • Page 116
    ... share units vested and released were 6,773,934 and 405,963, respectively. Time-Based Restricted Stock and Restricted Stock Unit Awards Prior to the release date, time-based restricted stock and restricted stock units granted from the 2014 Equity Plan do not pay dividends or have voting rights...

  • Page 117
    ... value of plan assets for our benefit plans (in millions): Pension Benefits Year Ended December 31, 2015 2014 Other Benefits 2015 2014 Benefit obligation at beginning of year1 Service cost Interest cost Foreign currency exchange rate changes Amendments Actuarial loss (gain) Benefits paid 2 Business...

  • Page 118
    ... value of plan assets Pension Plan Assets The following table presents total assets for our U.S. and non-U.S. pension plans (in millions): U.S. Plans December 31, 2015 2014 $ 7,537 5,846 $ 8,501 6,820 Non-U.S. Plans 2015 2014 Cash and cash equivalents Equity securities: U.S.-based companies...

  • Page 119
    ...provide a higher rate of return than that available from publicly traded equity securities. These investments are inherently illiquid and require a long-term perspective in evaluating investment performance. Investment Strategy for Non-U.S. Pension Plans As of December 31, 2015, the long-term target...

  • Page 120
    ... 2014 2013 2015 Other Benefits 2014 2013 Service cost Interest cost Expected return on plan assets1 Amortization of prior service cost (credit) Amortization of actuarial loss2 Net periodic benefit cost Settlement charge3 Special termination benefits3 Total cost recognized in statements of income...

  • Page 121
    ... changes in AOCI for our benefit plans (in millions, pretax): Pension Benefits Year Ended December 31, 2015 2014 Other Benefits 2015 2014 Balance in AOCI at beginning of year Recognized prior service cost (credit) Recognized net actuarial loss (gain) Prior service credit (cost) arising in current...

  • Page 122
    Certain weighted-average assumptions used in computing net periodic benefit cost are as follows: Pension Benefits Year Ended December 31, 2015 2014 2013 2015 Other Benefits 2014 2013 Discount rate Rate of increase in compensation levels Expected long-term rate of return on plan assets 3.75% 3.50% ...

  • Page 123
    ... the United States. Company costs associated with those plans were $35 million, $36 million and $32 million in 2015, 2014 and 2013, respectively. Multi-Employer Plans As a result of our acquisition of Old CCE's North America business during the fourth quarter of 2010, the Company now participates in...

  • Page 124
    ... rate and our effective tax rate is as follows: Year Ended December 31, 2015 2014 2013 Statutory U.S. federal tax rate State and local income taxes - net of federal benefit Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate Equity income or loss Other operating...

  • Page 125
    ... the event the Company did not prevail on all uncertain tax positions. A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2015 2014 2013 Beginning balance of unrecognized tax benefits Increase related to prior period...

  • Page 126
    ... and other intangible assets Equity method investments (including foreign currency translation adjustment) Derivative financial instruments Other liabilities Benefit plans Net operating/capital loss carryforwards Other Gross deferred tax assets Valuation allowances Total deferred tax assets1...

  • Page 127
    ..., our balance sheets as part of the line item equity attributable to noncontrolling interests. AOCI attributable to shareowners of The Coca-Cola Company consisted of the following (in millions): December 31, 2015 2014 Foreign currency translation adjustment Accumulated derivative net gains (losses...

  • Page 128
    ... benefit liabilities. OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2015, 2014 and 2013, is as follows (in millions): Before-Tax Amount After-Tax Amount Income Tax 2015 Foreign...

  • Page 129
    ...-for-sale securities2 Pension and other benefit liabilities: Net pension and other benefits arising during the year Reclassification adjustments recognized in net income Net change in pension and other benefit liabilities3 Other comprehensive income (loss) attributable to The Coca-Cola Company...

  • Page 130
    ... contracts Foreign currency and interest rate contracts Net operating revenues $ Cost of goods sold Other income (loss) - net Interest expense Income before income taxes $ Income taxes Consolidated net income $ Available-for-sale securities: Sale of securities Other income (loss) - net $ Income...

  • Page 131
    ... Company's fair value hedging strategy. Investments in Trading and Available-for-Sale Securities The fair values of our investments in trading and available-for-sale securities using quoted market prices from daily exchange traded markets are based on the closing price as of the balance sheet date...

  • Page 132
    ... to long-term debt securities that mature in 2018. 4 5 Refer to Note 5 for additional information related to the composition of our derivative portfolio. The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $567 million in the line...

  • Page 133
    ... current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 1, Note 2 and Note 17. 3 The Company recognized a loss of $19 million on our previously held investment in a South African bottler, which had been accounted...

  • Page 134
    ... Fixed-Income Securities Hedge Funds/Limited Partnerships Real Estate Equity Securities Other Total 2014 Balance at beginning of year Actual return on plan assets: Related to assets still held at the reporting date Related to assets sold during the year Purchases, sales and settlements - net...

  • Page 135
    .... Where quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. As of December 31, 2015, the carrying amount and fair value of our long-term debt, including...

  • Page 136
    ... derived using discounted cash flow analyses, to the current carrying value. Additionally, the remaining charge of $82 million was related to goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions and...

  • Page 137
    ... information on this transaction. Refer to Note 19 for the impact these items had on our operating segments. Effective July 1, 2013, four of the Company's Japanese bottling partners merged as Coca-Cola East Japan Bottling Company, Ltd. ("CCEJ"), a publicly traded entity, through a share exchange...

  • Page 138
    ...in 2015, 2014 and 2013, respectively, and has incurred total pretax expenses of $1,127 million related to this initiative since it commenced. These expenses were recorded in the line item other operating charges in our consolidated statements of income and impacted the Bottling Investments operating...

  • Page 139
    ... of total net operating revenues related to concentrate operations and finished product operations: Year Ended December 31, 2015 2014 2013 Concentrate operations1 Finished product operations2 Total 1 37% 63 100% 38% 62 100% 38% 62 100% Includes concentrates sold by the Company to authorized...

  • Page 140
    ... years ended December 31, 2015, 2014 and 2013, is as follows (in millions): Eurasia & Africa Latin America North America Asia Pacific Bottling Investments Europe Corporate Eliminations Consolidated 2015 Net operating revenues: Third party Intersegment Total net revenues Operating income (loss...

  • Page 141
    138

  • Page 142
    ... million for North America, $36 million for Asia Pacific, $211 million for Bottling Investments and $124 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18. • Operating income (loss) and...

  • Page 143
    ... Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions): Year Ended December 31, 2015 2014 2013 (Increase) decrease in trade accounts receivable (Increase) decrease in inventories (Increase...

  • Page 144
    ...presents information related to the major classes of assets and liabilities related to these additional territories, which were included in the North America operating segment (in millions): Inventories Prepaid expenses and other assets Property, plant and equipment - net Bottlers' franchise rights...

  • Page 145
    ... such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended ("Exchange Act"). Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2015. In making this assessment, management used the criteria set forth...

  • Page 146
    ... the Company's 2016 Proxy Statement. Muhtar Kent Chairman of the Board of Directors and Chief Executive Officer February 25, 2016 Kathy N. Waller Executive Vice President and Chief Financial Officer February 25, 2016 James R. Quincey President and Chief Operating Officer February 25, 2016 Larry...

  • Page 147
    ... balance sheets of The Coca-Cola Company and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareowners' equity, and cash flows for each of the three years in the period ended December 31, 2015. These financial statements...

  • Page 148
    ... sheets of The Coca-Cola Company and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareowners' equity, and cash flows for each of the three years in the period ended December 31, 2015, and our report dated February 25, 2016...

  • Page 149
    ... Year 2015 Net operating revenues Gross profit Net income attributable to shareowners of The Coca-Cola Company Basic net income per share Diluted net income per share 2014 Net operating revenues Gross profit Net income attributable to shareowners of The Coca-Cola Company Basic net income per share...

  • Page 150
    ... of foreign currency exchange rate fluctuations that impacted the fair value of the asset. Refer to Note 2 and Note 17. Charge of $3 million related to an impairment charge on a Venezuelan trademark. Refer to Note 1. The Company's fourth quarter 2015 results were impacted by six fewer shipping days...

  • Page 151
    ... with the participation of its management, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company's "disclosure controls and procedures" (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as...

  • Page 152
    ... 31, 2015 and 2014. Consolidated Statements of Cash Flows - Years ended December 31, 2015, 2014 and 2013. Consolidated Statements of Shareowners' Equity - Years ended December 31, 2015, 2014 and 2013. Notes to Consolidated Financial Statements. Report of Independent Registered Public Accounting Firm...

  • Page 153
    ... in the list of exhibits below, the Company's Current, Quarterly and Annual Reports are filed with the Securities and Exchange Commission ("SEC") under File No. 001-02217; and Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Current, Quarterly and Annual Reports are...

  • Page 154
    ... on October 27, 2015. Performance Incentive Plan of the Company, as amended and restated as of February 16, 2011 - incorporated herein by reference to Exhibit 10.7 to the Company's Current Report on Form 8-K filed on February 17, 2011.* The Coca-Cola Company 1999 Stock Option Plan, as amended and...

  • Page 155
    ... by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on February 19, 2014.* The Coca-Cola Company 1983 Restricted Stock Award Plan, as amended and restated through February 16, 2011 (the "1983 Restricted Stock Award Plan") - incorporated herein by reference to Exhibit 10...

  • Page 156
    ... Stock Unit Agreement for grants under the 2014 Equity Plan, as adopted February 18, 2015 - incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on February 18, 2015.* The Coca-Cola Company Compensation Deferral & Investment Program of the Company...

  • Page 157
    ....* Amendment Number One to the Benefits Plan for Members of the Board of Directors, dated December 16, 2005 - incorporated herein by reference to Exhibit 10.31.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2005.* The Coca-Cola Company Severance Pay Plan, As Amended...

  • Page 158
    ... Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Annual Report on Form 10-K for the year ended December 31, 2007.* Form of Stock Option Agreement (Chief Executive Officer and Senior Officers) under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan for Awards...

  • Page 159
    ... known as Coca-Cola Enterprises Inc.) Employee Benefit Plans and Equity Plans, effective December 6, 2010 - incorporated herein by reference to Exhibit 10.49 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.* Letter, dated September 11, 2012, from the Company to Ahmet...

  • Page 160
    ... Vice President and Chief Financial Officer of The Coca-Cola Company. The following financial information from The Coca-Cola Company's Annual Report on Form 10-K for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income...

  • Page 161
    ... undersigned, thereunto duly authorized. THE COCA-COLA COMPANY (Registrant) By: /s/ MUHTAR KENT Muhtar Kent Chairman of the Board of Directors and Chief Executive Officer Date: February 25, 2016 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by...

  • Page 162
    * Evan G. Greenberg Director February 25, 2016 * Alexis M. Herman Director February 25, 2016 * Robert A. Kotick Director February 25, 2016 David B. Weinberg Director February 25, 2016 Sam Nunn Director February 25, 2016 Maria Elena Lagomasino Director February 25, 2016 * * * *By: /s/ GLORIA K. ...

  • Page 163
    ... in the list of exhibits below, the Company's Current, Quarterly and Annual Reports are filed with the Securities and Exchange Commission ("SEC") under File No. 001-02217; and Coca-Cola Refreshments USA, Inc.'s (formerly known as Coca-Cola Enterprises Inc.) Current, Quarterly and Annual Reports are...

  • Page 164
    ... on October 27, 2015. Performance Incentive Plan of the Company, as amended and restated as of February 16, 2011 - incorporated herein by reference to Exhibit 10.7 to the Company's Current Report on Form 8-K filed on February 17, 2011.* The Coca-Cola Company 1999 Stock Option Plan, as amended and...

  • Page 165
    ... by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on February 19, 2014.* The Coca-Cola Company 1983 Restricted Stock Award Plan, as amended and restated through February 16, 2011 (the "1983 Restricted Stock Award Plan") - incorporated herein by reference to Exhibit 10...

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    ... Stock Unit Agreement for grants under the 2014 Equity Plan, as adopted February 18, 2015 - incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed on February 18, 2015.* The Coca-Cola Company Compensation Deferral & Investment Program of the Company...

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    ....27 Amendment Number One to the Benefits Plan for Members of the Board of Directors, dated December 16, 2005 - incorporated herein by reference to Exhibit 10.31.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2005.* The Coca-Cola Company Severance Pay Plan, As Amended...

  • Page 168
    ... known as Coca-Cola Enterprises Inc.) Employee Benefit Plans and Equity Plans, effective December 6, 2010 - incorporated herein by reference to Exhibit 10.49 to the Company's Annual Report on Form 10-K for the year ended December 31, 2010.* Letter, dated September 11, 2012, from the Company to Ahmet...

  • Page 169
    ...Coca-Cola Refreshments Supplemental Pension Plan, dated June 15, 2015 - incorporated herein by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended July 3, 2015.* Coca-Cola Refreshments Severance Pay Plan for Exempt Employees, effective as of January 1, 2012...

  • Page 170
    ... Vice President and Chief Financial Officer of The Coca-Cola Company. The following financial information from The Coca-Cola Company's Annual Report on Form 10-K for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income...

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    Exhibit 10.26 THE COCA-COLA EXPORT CORPORATION MOBILE EMPLOYEES RETIREMENT PLAN Effective January 1, 2012

  • Page 172
    THE COCA-COLA EXPORT CORPORATION MOBILE EMPLOYEES RETIREMENT PLAN TABLE OF CONTENTS ARTICLE I ARTICLE II ARTICLE III ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII DEFINITIONS ELIGIBILITY AND APPROVAL FOR PARTICIPATION PLAN ACCOUNTS AND CONTRIBUTIONS VESTING PAYMENT OF ACCOUNTS CHANGE OR...

  • Page 173
    ... not less than 20% of whose voting stock or ownership interest (not including shares having voting power only upon the happening of an event of default) is at the time owned, directly or indirectly, by the Company. Annual Interest Rate shall mean the year-over-year change in CPI-U for the United...

  • Page 174
    ... of the Directors in office prior to the acquisition of the securities by such person determines otherwise. Code shall mean the Internal Revenue Code of 1986, as amended. Committee shall mean the Global Benefits Committee, as herein provided in Article VII. Company shall mean The Coca-Cola Company...

  • Page 175
    ... The Coca-Cola Company Deferred Compensation Plan); (2) all severance payments; (3) tuition, relocation, and other expense reimbursements; (4) income from excess group life insurance; (5) income from stock option transactions and restricted stock transactions; (6) income from performance cash awards...

  • Page 176
    ... that qualifies the Member for benefits under The Coca-Cola Company Long-Term Disability Income Plan or a long-term disability plan of another Employer covering the Member, provided that the Member is unable to engage in any substantial gainful activity by reason of any medically determinable...

  • Page 177
    ... 80% of whose voting stock or ownership interest (not including shares having voting power only upon the happening of an event of default) is at the time owned, directly or indirectly, by the Company. ARTICLE II ELIGIBILITY AND APPROVAL FOR PARTICIPATION 1. Each Employee of the Company or of any...

  • Page 178
    ... shall equal the product of the Annual Interest Rate for the Plan Year (expressed as a monthly prorated rate) and the balance of the Member's Account as of the first day of each month of such Plan Year. For example, the Annual Interest Rate for the Plan Year beginning January 1, 2012 and ending...

  • Page 179
    ... of payment. All benefits under this Plan shall be paid in a single lump sum. 5.2 Distribution events and time of payment. (a) Separation from Service - U.S. Taxpayers. Upon a Member's Separation from Service, his vested Account balance attributable to contributions received while a U.S. Taxpayer...

  • Page 180
    ... assets of the Plan Sponsor or Company. A Member's failure to cash a benefit check within two years of issuance or attempted delivery of such payment shall result in a forfeiture of such payment to the Company. ARTICLE VI CHANGE OR DISCONTINUANCE OF PLAN (c) (d) 1. The Committee may at any time...

  • Page 181
    ...on all persons. The Committee shall appoint the Administrator to administer the Plan and to perform other related actions as may from time to time be agreed by the Committee. Expenses of Committee. The Company shall pay all expenses of the Committee. Such expenses shall include any expenses incident...

  • Page 182
    ... fund or account, nor the payment of any benefits, shall be construed as giving to any Member or other person any legal or equitable right against the Company, or of its Subsidiaries, or any officer or employee thereof, or the Committee, except as herein provided; and in no event shall the terms of...

  • Page 183
    .... Whenever the Company or a Subsidiary under the terms of this Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by any officer thereunder duly authorized by its Board of Directors. Controlling Law. This Plan shall be subject to the laws of the...

  • Page 184

  • Page 185
    ... related work as necessary. You will step down from your role as Executive Vice President and separate from the Company on March 31, 2016 ("Separation Date"). If you sign the enclosed release, you will be eligible for a benefit under The Coca-Cola Company Severance Pay Plan equivalent to two years...

  • Page 186
    ...10,000 per year in financial planning and related expenses incurred by you annually up through your Separation Date. The Company will provide at its expense outplacement services through a designated services provider. The terms and conditions in this letter are further conditioned upon your signing...

  • Page 187
    ... The Coca-Cola Company ("TCCC"), and its subsidiaries, affiliates, joint ventures, joint venture partners, and benefit plans (collectively with TCCC, referred to herein as the "Company"), and their respective current and former directors, officers, administrators, trustees, employees, agents...

  • Page 188
    ..., Trade Secrets and Confidentiality ("Agreement"). I fully understand and agree that: 1. this Agreement is in exchange for the payments and benefits under The Coca-Cola Company Severance Pay Plan, the payments and benefits described in the letter dated December 15, 2015, and other compensation to...

  • Page 189
    ... or make use of at any time such Trade Secrets for as long as the information remains a Trade Secret. "Trade Secret" means any technical or non-technical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan, list of...

  • Page 190
    ... be interpreted as diminishing or otherwise limiting the Company's right under applicable state law or any prior agreement I have signed or made with the Company regarding trade secrets, confidential information, or intellectual property. Return of Materials. I further covenant and agree that I have...

  • Page 191
    ..." means North America, South America, Asia, Africa, Europe, and Australia and Oceania. (d) "Restricted Businesses" means 1) companies whose primary business is the manufacture, sale, distribution and marketing of either carbonated soft drinks, coffee, tea, water, sports drinks, energy drinks, juices...

  • Page 192
    ...receive and had or will have access to Confidential Information and Trade Secrets of the Company, including but not limited to confidential and secret business and marketing plans, strategies, and studies, detailed client/customer/bottler lists and information relating to the operations and business...

  • Page 193
    ... or media, or take any action in disparagement of the Company, including but not limited to negative references to the Company or its products, services, corporate policies, or current or former officers or employees, customers, suppliers, or business partners or associates. Complete Ugreement. This...

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    ... and any legal action related to or arising out of this Agreement will be brought exclusively in the federal or state courts located in the State of Georgia. I hereby consent to the jurisdiction of such courts. Successors and Ussigns. This Agreement inures to the benefit of the Company and its...

  • Page 195
    ... VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER ADDRESS REPLY TO: PO BOX 1C34 ATLANTA, GA 30301 404 6C6-6926 FAX: 404 515-2411 October 14, 2015 Mr. Bernhard Goepelt The Coca-Cola Company Atlanta, Georgia Dear Bernhard, Under our standard program and policies related to expatriate employees...

  • Page 196
    Exhibit 12.1 THE COCA-COLA COMPANY AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Year Ended December 31, 2015 2014 2013 2012 2011 (In millimns except ratims) EARNINGS: Incmme frmm cmntinuing mperatimns befmre incmme taxes and changes in accmunting principles Fixed charges ...

  • Page 197
    ... Industries Atlantic Manufacturing Barlan, Inc. BCI Coca-Cola Bottling Company of Los Angeles Beverage Brands S.R.L. Beverage Services Limited Bharat Coca-Cola Overseas Holdings Pte. Ltd. Caribbean Refrescos, Inc. CCHBC Grouping, Inc. Coca-Cola (China) Investment Limited Coca-Cola (Japan) Company...

  • Page 198
    ... Re Captive Insurance Company, Inc. Refreshment Product Services, Inc. S.A. Coca-Cola Services N.V. Servicios Integrados de Administracion y Alta Gerencia, S. de R.L. de C.V. Servicios y Productos para Bebidas Refrescantes S.R.L. The Coca-Cola Export Corporation The Coca-Cola Trading Company LLC The...

  • Page 199
    ... 25, 2016, with respect to the consolidated financial statements of The Coca-Cola Company and subsidiaries, and the effectiveness of internal control over financial reporting of The Coca-Cola Company and subsidiaries, included in this Annual Report (Form 10-K) for the year ended December 31, 2015...

  • Page 200
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 201
    ... of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General Counsel...

  • Page 202
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 203
    ... of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General Counsel...

  • Page 204
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 205
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 206
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 207
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 208
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 209
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 210
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 211
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 212
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 213
    ..., a director of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General...

  • Page 214
    ... with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. IN PITNESS PHEREOF, I have hereunto set my hand this 24th day of February, 2016. /s/ KATHY N. PALLER KATHY N. PALLER Executive Vice President and Chief Financial Officer The Coca-Cola Company

  • Page 215
    ... LARRY M. MARK, Vice President and Controller of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT...

  • Page 216
    ... of The Coca-Cola Company (the "Company"), do hereby appoint MUHTAR KENT, Chairman of the Board of Directors and Chief Executive Officer of the Company, KATHY N. PALLER, Executive Vice President and Chief Financial Officer of the Company, BERNHARD GOEPELT, Senior Vice President, General Counsel...

  • Page 217
    ... financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer...

  • Page 218
    ...; and (b) Any fraud, whether or not material, that involves management or other employees who have a signifiyant role in the registrant's internal yontrol over finanyial reporting. Date: February 25, 2016 /s/ KATHY N. WALLER Kathy N. Waller Executive Vice President and Chief Financial Officer

  • Page 219
    ... Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ MUHTAR KENT Muhtar Kent Chairman of the Board of Directors and Chief Executive Officer February 25, 2016...

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