Coca Cola 2015 Annual Report Download - page 21

Changes in accounting standards could affect our reported financial results.
New accounting standards or pronouncements that may become applicable to our Company from time to time, or changes in the interpretation of existing
standards and pronouncements, could have a significant effect on our reported financial results for the affected periods.
If we are not able to achieve our overall long-term growth objectives, the value of an investment in our Company could be negatively affected.
We have established and publicly announced certain long-term growth objectives. These objectives were based on, among other things, our evaluation of our
growth prospects, which are generally driven by the sales potential of many product types, some of which are more profitable than others, and on an
assessment of the potential price and product mix. There can be no assurance that we will realize the sales potential and the price and product mix necessary
to achieve our long-term growth objectives.
If global credit market conditions deteriorate, our financial performance could be adversely affected.
The cost and availability of credit vary by market and are subject to changes in the global or regional economic environment. If conditions in major credit
markets deteriorate, our and our bottling partners' ability to obtain debt financing on favorable 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, as well as general unfavorable economic conditions, may also cause
consumers to reduce their discretionary spending, which could reduce the demand for our beverages and negatively affect our net operating revenues and the
Coca-Cola system's profitability.
Default by or failure of one or more of our counterparty financial institutions could cause us to incur significant losses.
As part of our hedging activities, we enter into transactions involving derivative financial instruments, including forward contracts, commodity futures
contracts, option contracts, collars and swaps, with various financial institutions. In addition, we have significant amounts of cash, cash equivalents and other
investments on deposit or in accounts with banks or other financial institutions in the United States and abroad. As a result, we are exposed to the risk of
default by or failure of counterparty financial institutions. The risk of counterparty default or failure may be heightened during economic downturns and
periods of uncertainty in the financial markets. If one of our counterparties were to become insolvent or file for bankruptcy, our ability to recover losses
incurred as a result of default or to retrieve our assets that are deposited or held in accounts with such counterparty may be limited by the counterparty's
liquidity or the applicable laws governing the insolvency or bankruptcy proceedings. In the event of default by or failure of one or more of our
counterparties, we could incur significant losses, which could negatively impact our results of operations and financial condition.
If we are unable to timely implement our previously announced actions to reinvigorate growth, or we do not realize the economic benefits we anticipate
from these actions, our results of operations for future periods could be negatively affected.
In October 2014, we announced that we were taking actions to reinvigorate growth, including streamlining and simplifying our operating model to speed
decision making and enhance local market focus; expanding our productivity and reinvestment program by targeting additional productivity; refocusing on
our core business model; strategically targeting brand and growth investments that leverage our global strengths; and driving revenue and profit growth with
clear portfolio roles across our markets while providing local operations with a clear line of sight and aligned compensation targets. We have begun
implementing these actions and have incurred, and we expect will continue to incur, significant costs and expenses with the associated programs, initiatives
and activities. If we are unable to implement some or all of these actions fully or in the envisioned timeframe, or otherwise we do not timely capture the
efficiencies, cost savings and revenue growth opportunities we anticipate from these actions, our results of operations for future periods could be negatively
affected.
If we fail to realize a significant portion of the anticipated benefits of our strategic relationship with Monster, our financial performance could be
adversely affected.
In August 2014, we entered into definitive agreements with Monster for a long-term strategic relationship in the global energy drink category, and upon the
closing of the transactions contemplated by the agreements in June 2015 we purchased newly issued shares representing approximately 17 percent of
Monster’s issued and outstanding shares of common stock (after giving effect to the issuance). (For more information regarding our agreements with Monster
and related 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.) If we are unable to successfully manage our complex relationship with Monster, or if for any other reason we fail to realize all or a
significant part of the benefits we expect from this strategic relationship and the related investment, our financial performance could be adversely affected.
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