Coca-Cola Reports Strong Results in Second Quarter;
Updates Full Year Guidance
Global Unit Case Volume Grew 18%
Net Revenues Grew 42%;
Organic Revenues (Non-GAAP) Grew 37%
Operating Income Grew 52%;
Comparable Currency Neutral Operating Income (Non-GAAP) Grew 46%
Operating Margin Was 29.8% Versus 27.7% in the Prior Year;
Comparable Operating Margin (Non-GAAP) Was 31.7% Versus 30.0% in the Prior YearEPS Grew 48% to $0.61; Comparable EPS (Non-GAAP) Grew 61% to $0.68
ATLANTA, July 21, 2021 – The Coca-Cola Company today reported strong second quarter 2021 results and year-todate performance. “Our results in the second quarter show how our business is rebounding faster than the overall
economic recovery, led by our accelerated transformation. As a result, we are encouraged and, despite theasynchronous nature of the recovery, we are raising our full year guidance,” said James Quincey, Chairman and CEOof The Coca-Cola Company. “We are executing against our growth plans and our system is aligned. We are better
equipped than ever to win in this growing, vibrant industry and to accelerate value creation for our stakeholders.”
Highlights
Quarterly Performance• Revenues: Net revenues grew 42% to $10.1 billion, and organic revenues (non-GAAP) grew 37%. Revenue
performance included 26% growth in concentrate sales and 11% growth in price/mix. Revenue growth was driven by
the ongoing recovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling
revenue declines from the impact of the coronavirus pandemic last year.
• Margin: Operating margin, which included items impacting comparability, was 29.8% versus 27.7% in the prior year,
while comparable operating margin (non-GAAP) was 31.7% versus 30.0% in the prior year. Operating margin
expansion was primarily driven by favorable channel and package mix where coronavirus-related uncertainty is
abating, partially offset by a significant increase in marketing expenses versus the prior year.
• Earnings per share: EPS grew 48% to $0.61, and comparable EPS (non-GAAP) grew 61% to $0.68. Comparable
EPS (non-GAAP) growth included the impact of a 5-point currency tailwind.

1• Market share: The company gained value share in total nonalcoholic ready-to-drink (NARTD) beverages driven by ashare gain in both at-home and away-from-home channels. The company’s value share in total NARTD beverages is
now ahead of the 2019 level.
• Cash flow: Year-to-date cash flow from operations was $5.5 billion, up $2.7 billion versus the prior year, driven bystrong business performance, five additional days in the first quarter and working capital initiatives. Year-to-date free
cash flow (non-GAAP) was $5.1 billion, up $2.8 billion versus the prior year, driven by cash flow from operations
along with lower capital expenditures versus the prior year.
Company Updates• Business environment update: Global unit case volume benefited from the ongoing recovery in many markets,partially offset by the impact of a resurgence of the coronavirus in several markets. As a result, when compared to2019 volume levels, second quarter volume growth was in line with the first quarter of 2021. The company saw
away-from-home channels rebound as restrictions eased in certain markets, driving value across the enterprise andleading to second quarter revenues ahead of the 2019 level. While coronavirus-related uncertainty continues, thecompany remains agile in order to execute on its strategic priorities and build on the work that has been done in thepast year to navigate an asynchronous recovery.

• Continuing innovation through loved and scaled brands: The company, with its disciplined approach to scaling
big bets, recently announced the launch of a new and improved Coca-Cola® Zero Sugar recipe in the United Statesthat brings it closer to the great taste of original Coca-Cola. New packaging is simplified and celebrates the iconic
Coca-Cola logo, beginning with the brand’s universally recognized red. The Coca-Cola logo in black Spencerian
script signals the Zero Sugar variety. The new, global marketing approach for Coca-Cola Zero Sugar will besupported by scaled advertisements and a 360-degree marketing activation plan that invites consumers to try the
product and find out if it’s the “Best Coke® Ever?” The new Coca-Cola Zero Sugar previously launched in fiveoperating units across multiple countries, including Japan, Turkey, parts of Latin America and parts of Europe.
Overall, Coca-Cola Zero Sugar grew 15% year-to-date, resulting in high single-digit growth versus 2019.
• Transforming the digital ecosystem to create and capture value: The company is leveraging the strength of the
Coca-Cola system to drive value for stakeholders. The Wabi™ ecosystem, which leverages the system’s unrivaled
distribution network and connects businesses to businesses to consumers, continues to accelerate and is now
present in 14 countries, with gross merchandising value growing significantly. The company’s footprint in
e-commerce also continues to expand. The company’s direct-to-consumer Coke ON® app in Japan, which connects
consumers to the system’s vending machines, reached more than 28 million downloads with significant gains in
consumer awareness versus the prior year. In North America e-commerce retail, the company continues to be themarket leader in the total NARTD category, growing retail value 54% year-to-date. In Europe, our e-commerce is
growing retail value faster than 50% across key markets, resulting in a strong value share gain year-to-date.
• Accelerating sustainable business practices: During the quarter, the company continued its sustainability journey,
which included announcing its plans to use 100% recycled plastic (rPET) in all on-the-go bottles across its portfolio in
Great Britain beginning in September, and announcing that by the end of summer all locally manufactured packages
in Belgium and Luxembourg are expected to be 100% rPET. These initiatives will save approximately 43,000 tonnesof virgin plastic each year. The company also announced a partnership with The Ocean Cleanup to help stem thetide of marine waste by intercepting plastic debris in rivers around the world. The partnership brings together thecompany’s scale and global network with The Ocean Cleanup’s technology and data-driven solutions to address 15
rivers by the end of 2022. Finally, the company continued its multi-faceted approach to diversity, equity and inclusion
by announcing plans to nearly double its spending with minority-owned media companies in North America over the
next three years.
2Operating Review – Three Months Ended July 2, 2021
Revenues and Volume

Percent Change

Concentrate
Sales1Price/Mix

Currency
ImpactAcquisitions,
Divestitures
and Structural
Changes, Net

Consolidated

26

11

5

0

42

37

18

Europe, Middle East & Africa

41

20

6

0

67

61

21

Latin America

29

9

3

0

41

39

12

North America

16

12

1

(1)

28

28

17

Asia Pacific

15

6

6

0

27

21

16

Global Ventures

60

57

23

0

139

117

48

Bottling Investments

25

3

9

0

38

29

25

3

Reported Net
Revenues

Organic
Revenues2

Unit Case
VolumeOperating Income and EPS

Percent Change

Reported
Operating
IncomeItems
ImpactingComparability

Currency
ImpactComparable
Currency
Neutral2

Consolidated

52

3

3

46

Europe, Middle East & Africa

60

(2)

6

56

Latin America

35

2

1

32

North America

94

47

1

47

Asia Pacific

17

1

7

10

Global Ventures

—

4

—

—

—

Bottling Investments

631

360

(91)

362

Percent Change

Reported
EPS

Items
ImpactingComparability

Currency
ImpactComparable
Currency
Neutral2

Consolidated EPS

48

(13)

5

55

Note: Certain rows may not add due to rounding.
1

For Bottling Investments, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume
computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structuralchanges, if any.

2

Organic revenues, comparable currency neutral operating income and comparable currency neutral EPS are non-GAAP financial measures.
Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section.

3

Due to the combination of multiple business models in the Global Ventures operating segment, the composition of concentrate sales and price/
mix may fluctuate materially on a periodic basis. Therefore, the company places greater focus on revenue growth as the best indicator ofunderlying performance of the Global Ventures operating segment.

4

Reported operating income for Global Ventures for the three months ended July 2, 2021 was $75 million. Reported operating loss for Global
Ventures for the three months ended June 26, 2020 was $102 million. Therefore, the percent change is not meaningful.

In addition to the data in the preceding tables, operating results included the following:
Consolidated• Unit case volume grew 18% in the quarter, resulting in even performance on a two-year basis, driven by theongoing recovery in markets where coronavirus-related uncertainty is abating along with the benefit from cycling
the impact of the coronavirus pandemic last year. Both developed and developing and emerging markets led therecovery, and both grew double digits in the quarter. Markets such as China, Brazil and Nigeria grew volume
ahead of 2019 levels while other markets, including India, continued to be under pressure versus 2019, driven
by the continued impact of the coronavirus pandemic.
3Category performance was as follows:◦ Sparkling soft drinks grew 14%, led by strong growth in the United States, India and Brazil. Trademark
Coca-Cola grew 12%, resulting in volume ahead of the 2019 level, led by Europe, Middle East & Africa andLatin America. Sparkling flavors grew 18%, led by solid growth in both Trademark Sprite and Trademark
Fanta.
◦ Nutrition, juice, dairy and plant-based beverages grew 25% due to solid performance by Minute Maid® andfairlife® in North America, Minute Maid Pulpy in China and Maaza® in India.

◦ Hydration, sports, coffee and tea grew 25%. Hydration grew 21%, with double-digit growth across all
geographic operating segments. Sports drinks grew 35%, resulting in volume ahead of the 2019 level,
primarily driven by Powerade® in North America. Tea grew 18%, led by growth in the United States, Japanand Brazil. Coffee grew 78%, primarily driven by the reopening of Costa® retail stores in the United
Kingdom as coronavirus-related uncertainty continued to abate.
• Price/mix grew 11% for the quarter, primarily driven by favorable channel and package mix due to cycling theimpact of the coronavirus pandemic last year, along with positive segment mix from Global Ventures andBottling Investments. Concentrate sales were 9 points ahead of unit case volume in the quarter, primarily due tocycling the rationalization of stock levels in the prior year along with the timing of shipments in the current year.
Year-to-date concentrate sales were 6 points ahead of unit case volume primarily due to five additional days inthe first quarter, along with cycling the timing of shipments in the prior year.
• Operating income grew 52%, which included items impacting comparability and a 5-point currency tailwind.
Comparable currency neutral operating income (non-GAAP) grew 46%, driven by strong organic revenue (nonGAAP) growth across all operating segments, partially offset by a significant increase in marketing expenses
versus the prior year.
Europe, Middle East & Africa• Unit case volume grew 21% in the quarter, driven by the ongoing recovery in markets where coronavirus-related
uncertainty is abating, along with the benefit from cycling the impact of the coronavirus pandemic last year.
Growth was led by Russia, Spain and Germany in Europe, Nigeria in Africa, and Turkey and Pakistan in Eurasia
and Middle East.
• Price/mix grew 20% for the quarter, driven by favorable channel and package mix due to cycling the impact of
the coronavirus pandemic last year, along with the timing of deductions. For the quarter, concentrate sales were
20 points ahead of unit case volume due to cycling the rationalization of stock levels in the prior year, along withthe timing of shipments in the current year. Year-to-date concentrate sales were 9 points ahead of unit case
volume primarily due to five additional days in the first quarter, along with cycling the timing of shipments in theprior year.
• Operating income grew 60%, which included items impacting comparability and a currency tailwind.
Comparable currency neutral operating income (non-GAAP) grew 56%, primarily driven by strong organic
revenue (non-GAAP) growth across all operating units, partially offset by a significant increase in marketing
expenses versus the prior year.
• The company gained value share in total NARTD beverages along with gaining or maintaining share across all
categories.

4

Latin America• Unit case volume grew 12% in the quarter, resulting in volume ahead of the 2019 level, primarily driven by theongoing recovery in away-from-home channels and continued strength in at-home channels. Growth was led by
Brazil and Mexico, driven by solid performance of sparkling soft drinks and the hydration category.
• Price/mix grew 9%, driven by pricing initiatives along with favorable channel and package mix. For the quarter,
concentrate sales were 17 points ahead of unit case volume due to cycling the rationalization of stock levels in
the prior year, along with the timing of shipments in the current year. Year-to-date concentrate sales were 8
points ahead of unit case volume primarily due to five additional days in the first quarter, along with the timing of
shipments in the current year.
• Operating income grew 35%, which included items impacting comparability and a 1-point currency tailwind.
Comparable currency neutral operating income (non-GAAP) grew 32%, driven by solid organic revenue (nonGAAP) growth, partially offset by a significant increase in marketing expenses versus the prior year.
• The company lost value share in total NARTD beverages as share gains in Brazil and Argentina were more thanoffset by share losses in Mexico and Ecuador.
North America• Unit case volume grew 17% in the quarter. Growth was led by the recovery in the fountain business across all
categories as coronavirus-related uncertainty continued to abate during the quarter. At-home channel strength
continued during the quarter, and at-home channels continued to see volume ahead of 2019 levels.
• Price/mix grew 12% for the quarter, primarily driven by the recovery in the fountain business and away-fromhome channels, along with solid growth in premium offerings and juice and dairy finished-goods brands. Yearto-date concentrate sales were 3 points ahead of unit case volume, primarily due to five additional days in thefirst quarter.
• Operating income grew 94%, which included tailwinds from items impacting comparability and currency.
Comparable currency neutral operating income (non-GAAP) grew 47%, driven by strong organic revenue (nonGAAP) growth, partially offset by a significant increase in marketing expenses versus the prior year.
• The company gained value share in total NARTD beverages led by a strong recovery in away-from-homechannels along with continued strong performance in at-home channels.
Asia Pacific• Unit case volume grew 16% in the quarter, driven by growth across all operating units due to the ongoingrecovery in markets where coronavirus-related uncertainty is abating, along with the benefit from cycling theimpact of the coronavirus pandemic last year. Growth was led by sparkling flavors and the hydration category.
• Price/mix grew 6%, driven by favorable channel and package mix due to cycling the impact of the coronavirus
pandemic last year, along with the timing of deductions. Year-to-date concentrate sales were 5 points ahead ofunit case volume, primarily due to five additional days in the first quarter.
• Operating income grew 17%, which included a 7-point currency tailwind. Comparable currency neutral operating
income (non-GAAP) grew 10%, driven by solid organic revenue (non-GAAP) growth, partially offset by asignificant increase in marketing expenses versus the prior year.
• The company gained value share in total NARTD beverages driven by share gains in Japan and Southeast
Asia.

5

Global Ventures• Net revenues grew 139% in the quarter, which included a 23-point currency tailwind. Organic revenues(non-GAAP) grew 117%. Revenue growth was primarily driven by the reopening of Costa retail stores in the
United Kingdom as coronavirus-related uncertainty continued to abate.
• Operating income growth and comparable currency neutral operating income (non-GAAP) growth were driven
by strong organic revenue (non-GAAP) growth.
Bottling Investments• Unit case volume grew 25% in the quarter, primarily driven by solid growth in India and South Africa.
• Price/mix grew 3%, driven by pricing and trade promotion optimization in most markets, along with a benefit
from category and package mix.
• Operating income growth of 631% included a tailwind from items impacting comparability and a headwind fromcurrency. Comparable currency neutral operating income (non-GAAP) grew 362%, driven by solid organic
revenue (non-GAAP) growth along with effective cost management.
Operating Review – Six Months Ended July 2, 2021
Revenues and Volume

Percent Change

Concentrate
Sales1Price/Mix

Currency
ImpactAcquisitions,
Divestitures
and Structural
Changes, Net

Consolidated

15

5

2

0

22

20

9

Europe, Middle East & Africa

18

3

3

0

24

21

9

Latin America

14

7

(5)

0

17

22

6

North America

8

8

0

(1)

15

15

5

Asia Pacific

17

2

6

0

26

20

13

Global Ventures3

27

9

11

0

47

36

19

Bottling Investments

18

4

3

0

24

22

14

Reported Net
Revenues

Organic
Revenues2

Unit Case
VolumeOperating Income and EPS

Percent Change

Reported
Operating
IncomeItems
ImpactingComparability

Currency
ImpactComparable
Currency
Neutral2

Consolidated

32

6

1

24

Europe, Middle East & Africa

17

(4)

3

18

Latin America

18

0

(5)

23

North America

99

63

1

35

Asia Pacific

25

(1)

7

18

Global Ventures

—

4

—

—

—

Bottling Investments

210

94

(33)

149

Percent Change

Reported
EPS

Items
ImpactingComparability

Currency
ImpactComparable
Currency
Neutral2

Consolidated EPS

7

(25)

2

30

Note: Certain rows may not add due to rounding.

6

1

For Bottling Investments, this represents the percent change in net revenues attributable to the increase (decrease) in unit case volume
computed based on total sales (rather than average daily sales) in each of the corresponding periods after considering the impact of structuralchanges, if any.

2

Organic revenues, comparable currency neutral operating income and comparable currency neutral EPS are non-GAAP financial measures.
Refer to the Reconciliation of GAAP and Non-GAAP Financial Measures section.

3

Due to the combination of multiple business models in the Global Ventures operating segment, the composition of concentrate sales and price/
mix may fluctuate materially on a periodic basis. Therefore, the company places greater focus on revenue growth as the best indicator ofunderlying performance of the Global Ventures operating segment.

4

Reported operating income for Global Ventures for the six months ended July 2, 2021 was $101 million. Reported operating loss for Global
Ventures for the six months ended June 26, 2020 was $83 million. Therefore, the percent change is not meaningful.

OutlookThe 2021 outlook information provided below includes forward-looking non-GAAP financial measures, which
management uses in measuring performance. The company is not able to reconcile full year 2021 projected organic
revenues (non-GAAP) to full year 2021 projected reported net revenues, full year 2021 projected comparable net
revenues (non-GAAP) to full year 2021 projected reported net revenues, full year 2021 projected underlying
effective tax rate (non-GAAP) to full year 2021 projected reported effective tax rate, or full year 2021 projectedcomparable EPS (non-GAAP) to full year 2021 projected reported EPS without unreasonable efforts because it is
not possible to predict with a reasonable degree of certainty the actual impact of changes in foreign currency
exchange rates; the exact timing and amount of acquisitions, divestitures and/or structural changes; and the exact
timing and amount of items impacting comparability throughout 2021. The unavailable information could have asignificant impact on the company’s full year 2021 reported financial results.
Full Year 2021
The company expects to deliver organic revenue (non-GAAP) growth of 12% to 14%. – Updated
For comparable net revenues (non-GAAP), the company expects a 1% to 2% currency tailwind based on thecurrent rates and including the impact of hedged positions. – Unchanged
The company’s underlying effective tax rate (non-GAAP) is estimated to be 19.1%. This does not include the impactof the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.
– Unchanged
Given the above considerations, the company expects to deliver comparable EPS (non-GAAP) growth of
13% to 15% versus $1.95 in 2020. – Updated
Comparable EPS (non-GAAP) percentage growth includes a 2% to 3% currency tailwind based on the current rates
and including the impact of hedged positions. – Unchanged
The company expects to generate free cash flow (non-GAAP) of at least $9.0 billion through cash flow fromoperations of at least $10.5 billion less capital expenditures of approximately $1.5 billion. This does not include any
potential payments related to the ongoing tax litigation with the U.S. Internal Revenue Service. – Updated
Third Quarter 2021 Considerations – New
Comparable net revenues (non-GAAP) are expected to include an approximate 2% currency tailwind based on thecurrent rates and including the impact of hedged positions.
Comparable EPS (non-GAAP) is expected to include an approximate 3% to 4% currency tailwind based on thecurrent rates and including the impact of hedged positions.
Notes•

All references to growth rate percentages and share compare the results of the period to those of the prior year
comparable period, unless otherwise noted.

•

All references to volume and volume percentage changes indicate unit case volume, unless otherwise noted. All
volume percentage changes are computed based on average daily sales, unless otherwise noted. “Unit case”
means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings),

7

with the exception of unit case equivalents for Costa non-ready-to-drink beverage products which are primarily
measured in number of transactions. “Unit case volume” means the number of unit cases (or unit caseequivalents) of company beverages directly or indirectly sold by the company and its bottling partners tocustomers or consumers.
•“Concentrate sales” represents the amount of concentrates, syrups, beverage bases, source waters andpowders/minerals (in all instances expressed in equivalent unit cases) sold by, or used in finished beverages
sold by, the company to its bottling partners or other customers. For Costa non-ready-to-drink beverage
products, “concentrate sales” represents the amount of coffee beans (in all instances expressed in equivalent
unit cases) sold by the company to customers or consumers. In the reconciliation of reported net revenues,“concentrate sales” represents the percent change in net revenues attributable to the increase (decrease) inconcentrate sales volume for the geographic operating segments and the Global Ventures operating segment
after considering the impact of structural changes, if any. For the Bottling Investments operating segment, thisrepresents the percent change in net revenues attributable to the increase (decrease) in unit case volume
computed based on total sales (rather than average daily sales) in each of the corresponding periods after
considering the impact of structural changes, if any. The Bottling Investments operating segment reflects unit
case volume growth for consolidated bottlers only.

•“Price/mix” represents the change in net operating revenues caused by factors such as price changes, the mixof products and packages sold, and the mix of channels and geographic territories where the sales occurred.

•First quarter 2021 financial results were impacted by five additional days as compared to first quarter 2020, andfourth quarter 2021 financial results will be impacted by six fewer days as compared to fourth quarter 2020. Unit
case volume results for the quarters are not impacted by the variances in days due to the average daily sales
computation referenced above.
Conference Call

The company is hosting a conference call with investors and analysts to discuss second quarter 2021 operating
results today, July 21, 2021, at 8:30 a.m. ET. The company invites participants to listen to a live webcast of theconference call on the company’s website, http://www.coca-colacompany.com, in the “Investors” section. An audio
replay in downloadable digital format and a transcript of the call will be available on the website within 24 hours
following the call. Further, the “Investors” section of the website includes certain supplemental information and areconciliation of non-GAAP financial measures to the company’s results as reported under GAAP, which may be
used during the call when discussing financial results.
Contacts:
Investors and Analysts: Tim Leveridge, koinvestorrelations@coca-cola.com
Media: Scott Leith, sleith@coca-cola.com

8

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income(UNAUDITED)(In millions except per share data)
Three Months Ended

Net Operating Revenues
Cost of goods sold
Gross Profit
Selling, general and administrative expenses
Other operating charges
Operating Income
Interest income
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income Before Income Taxes
Income taxes
Consolidated Net Income
Less: Net income (loss) attributable to noncontrolling interests
Net Income Attributable to Shareowners of The Coca-Cola Company
Basic Net Income Per Share1
1

Diluted Net Income Per Share
Average Shares Outstanding
Effect of dilutive securities
Average Shares Outstanding Assuming Dilution
Note: Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

Calculated based on net income attributable to shareowners of The Coca-Cola Company.

9

July 2,
2021

June 26,
2020%
Change$10,129 $
3,787
6,342
3,017
309
3,016
71
780
402
909
3,618
994
2,624
(17)
2,641 $

7,150
3,013
4,137
1,983
173
1,981
100
274
176
214
2,197
438
1,759
(20)
1,779

42
26
53
52
79
52
(29)
184
128
327
65
128
49
14
48

$

0.61

$

0.41

48

$

0.61
4,313
25
4,338

$

0.41
4,295
21
4,316

48
0
18
1

$

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income(UNAUDITED)(In millions except per share data)
Six Months Ended

Net Operating Revenues
Cost of goods sold
Gross Profit
Selling, general and administrative expenses
Other operating charges
Operating Income
Interest income
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income Before Income Taxes
Income taxes
Consolidated Net Income
Less: Net income (loss) attributable to noncontrolling interests
Net Income Attributable to Shareowners of The Coca-Cola Company
Basic Net Income Per Share1
1

Diluted Net Income Per Share
Average Shares Outstanding
Effect of dilutive securities
Average Shares Outstanding Assuming Dilution
Note: Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

Calculated based on net income attributable to shareowners of The Coca-Cola Company.

10

July 2,
2021

June 26,
2020%
Change$19,149 $7,292
11,857
5,686
433
5,738
137
1,222
681
1,047
6,381
1,502
4,879
(7)
4,886 $

15,751
6,384
9,367
4,631
375
4,361
212
467
343
758
5,207
653
4,554
—
4,554

22
14
27
23
15
32
(36)
162
98
38
23
130
7
—
7

$

1.13

$

1.06

7

$

1.13
4,310
24
4,334

$

1.05
4,292
29
4,321

7
0
(16)
0

$

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets(UNAUDITED)(In millions except par value)
July 2,2021

December 31,
2020

ASSETS
Current Assets
Cash and cash equivalents
Short-term investments
Total Cash, Cash Equivalents and Short-Term Investments
Marketable securities
Trade accounts receivable, less allowances of $527 and $526, respectively
Inventories
Prepaid expenses and other assets
Total Current Assets
Equity method investments
Other investments
Other assets
Deferred income tax assets
Property, plant and equipment — net
Trademarks with indefinite lives
Goodwill
Other intangible assets
Total Assets
LIABILITIES AND EQUITYCurrent Liabilities
Accounts payable and accrued expenses
Loans and notes payable
Current maturities of long-term debt

$

$

$

9,188
2,079
11,267
1,775
4,036
3,281
2,122
22,481
18,471
945
6,553
2,291
10,547
10,675
17,693538
90,194$

12,124
1,867
337

$

$

6,795
1,771
8,566
2,348
3,144
3,266
1,916
19,24019,273
812
6,184
2,460
10,777
10,39517,506649
87,296

11,1452,183
485

Accrued income taxes
Total Current Liabilities

971
15,299788
14,601Long-term debt
Other liabilities
Deferred income tax liabilities
The Coca-Cola Company Shareowners’ Equity
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares
Capital surplus
Reinvested earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost — 2,725 and 2,738 shares, respectively
Equity Attributable to Shareowners of The Coca-Cola Company
Equity attributable to noncontrolling interests
Total Equity
Total Liabilities and Equity

39,8048,350
2,486

40,125
9,453
1,833

1,760
17,781
67,838(13,299)(51,831)
22,2492,006
24,25590,194 $

1,760
17,601
66,555(14,601)(52,016)
19,2991,985
21,28487,296

11$

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows(UNAUDITED)(In millions)
Six Months Ended

Operating Activities
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 — net
Other operating charges
Other items
Net change in operating assets and liabilities
Net Cash Provided by Operating Activities
Investing Activities
Purchases of investments
Proceeds from disposals of investments
Acquisitions of businesses, equity method investments and nonmarketable securities
Proceeds from disposals of businesses, equity method investments and nonmarketable securities
Purchases of property, plant and equipment
Proceeds from disposals of property, plant and equipment
Other investing activities
Net Cash Provided by (Used in) Investing Activities
Financing Activities
Issuances of debt
Payments of debt
Issuances of stock
Purchases of stock for treasury
Dividends
Other financing activities
Net Cash Provided by (Used in) Financing Activities
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted
Cash Equivalents
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
during the period
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period
Less: Restricted cash and restricted cash equivalents at end of period
Cash and Cash Equivalents at End of Period

12

$

$

July 2,
2021

June 26,2020

4,879 $
749
148
500
(333)
(31)
(690)
238
503
(438)
5,525

4,554
748
36
(39)
(212)
(67)
(901)
341
52
(1,726)
2,786(3,431)
3,811
(11)
1,765
(450)
28
41
1,753

(8,294)
2,649
(984)
46
(536)
112
40
(6,967)

10,752(11,957)
342(104)(3,623)(372)(4,962)

19,775(10,304)444(93)(1,761)
(16)
8,045

82

(172)

2,398
7,110
9,508
320
9,188

3,692
6,737
10,429392
10,037$

THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments and Corporate(UNAUDITED)(In millions)Three Months Ended
Net Operating Revenues1
July 2,
2021

June 26,
2020

Operating Income (Loss)% Fav. /(Unfav.)

July 2,
2021

June 26,
2020

Income (Loss) Before Income Taxes% Fav. /(Unfav.)

July 2,
2021

June 26,2020% Fav. /(Unfav.)

Europe, Middle East
& Africa$

2,017 $

1,210

67 $

1,142 $

715

60 $

1,169 $

736

59

Latin America

1,067

755

41

678

504

35

681

444

53

North America

3,381

2,648

28

950

489

94

959

483

99

Asia Pacific

1,503

1,183

27

766

652

17

779

661

18

707

295

139

75

(102)

—

78

(103)

—

1,738

1,263

38

92

12

631

422

166

154

Global Ventures
Bottling Investments
Corporate

17

(12)

—

(687)

(289)

(137)

(470)

(190)

(146)

Eliminations

(301)

(192)

(57)

—

—

—

—

—

—

10,129 $

7,150

42 $

3,016 $

52 $3,618 $

2,197

65

Consolidated

$

1,981

Note: Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

During the three months ended July 2, 2021, intersegment revenues were $143 million for Europe, Middle East & Africa, $2 million for North America,$153 million for Asia Pacific and $3 million for Bottling Investments. During the three months ended June 26, 2020, intersegment revenues were $75 million
for Europe, Middle East & Africa, $1 million for North America, $115 million for Asia Pacific and $1 million for Bottling Investments.

13

THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments and Corporate(UNAUDITED)(In millions)
Six Months Ended
Net Operating Revenues1
July 2,
2021

June 26,
2020

Operating Income (Loss)% Fav. /(Unfav.)

July 2,
2021

June 26,
2020

Income (Loss) Before Income Taxes% Fav. /(Unfav.)

July 2,
2021

June 26,2020% Fav. /(Unfav.)

Europe, Middle East
& Africa$

3,640 $

2,935

24 $

1,962 $

1,675

17 $

1,999 $

1,707

17

Latin America

1,976

1,685

17

1,230

1,043

18

1,236

979

26

North America

6,318

5,498

15

1,742

876

99

1,775

885

100

Asia Pacific

2,905

2,311

26

1,452

1,163

25

1,474

1,174

26

Global Ventures

1,277

868

47

101

(83)

—

105

(85)

—

Bottling Investments

3,634

2,921

24

233

75

210

739

364

103

Corporate

34

19

80

(982)

(388)

(153)

(947)

183

—

Eliminations

(635)

(486)

(31)

—

—

—

—

—

—

19,149 $15,75122 $

5,738 $

32 $6,381 $

5,207

23

\ Consolidated

$

4,361

Note: Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

During the six months ended July 2, 2021, intersegment revenues were $304 million for Europe, Middle East & Africa, $3 million for North America,$323 million for Asia Pacific and $5 million for Bottling Investments. During the six months ended June 26, 2020, intersegment revenues were $227 million
for Europe, Middle East & Africa, $2 million for North America, $254 million for Asia Pacific and $3 million for Bottling Investments.

14

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)The company reports its financial results in accordance with accounting principles generally accepted in the United States(“GAAP” or referred to herein as “reported”). To supplement our consolidated financial statements reported on a GAAP
basis, we provide the following non-GAAP financial measures: “comparable net revenues,” “comparable currency neutral
net revenues,” “organic revenues,” “comparable operating margin,” “underlying operating margin,” “comparable operating
income,” “comparable currency neutral operating income,” “comparable EPS,” “comparable currency neutral EPS,”“underlying effective tax rate” and “free cash flow,” each of which is defined below. Management believes these nonGAAP financial measures provide investors with additional meaningful financial information that should be consideredwhen assessing our underlying business performance and trends. Further, management believes these non-GAAP
financial measures also enhance investors’ ability to compare period-to-period financial results. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative for, the company’s reported results prepared inaccordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting.
Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by othercompanies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included below.
Management uses these non-GAAP financial measures in making financial, operating, compensation and planning
decisions and in evaluating the company’s performance. Disclosing these non-GAAP financial measures allows investors
and management to view our operating results excluding the impact of items that are not reflective of the underlying
operating performance.
DEFINITIONS•“Currency neutral operating results” are determined by dividing or multiplying, as appropriate, our current period
actual U.S. dollar operating results, by the current period actual exchange rates (that include the impact of current
period currency hedging activities), to derive our current period local currency operating results. We then multiply or
divide, as appropriate, the derived current period local currency operating results by the foreign currency exchange
rates (that also include the impact of the comparable prior period currency hedging activities) used to translate thecompany’s financial statements in the comparable prior year period to determine what the current period U.S. dollar
operating results would have been if the foreign currency exchange rates had not changed from the comparable
prior year period.

•“Structural changes” generally refer to acquisitions and divestitures of bottling operations, including the impact ofintercompany transactions between our operating segments.

•“Comparable net revenues” is a non-GAAP financial measure that excludes or has otherwise been adjusted foritems impacting comparability (discussed further below). “Comparable currency neutral net revenues” is a
non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability(discussed further below) as well as the impact of changes in foreign currency exchange rates. Management
believes the comparable net revenues (non-GAAP) growth measure and the comparable currency neutral net
revenues (non-GAAP) growth measure provide investors with useful supplemental information to enhance theirunderstanding of the company’s revenue performance and trends by improving their ability to compare our periodto-period results. “Organic revenues” is a non-GAAP financial measure that excludes or has otherwise beenadjusted for the impact of acquisitions, divestitures and structural changes, as applicable, and the impact ofchanges in foreign currency exchange rates. Management believes the organic revenue (non-GAAP) growthmeasure provides users with useful supplemental information regarding the company’s ongoing revenue
performance and trends by presenting revenue growth excluding the impact of foreign exchange as well as theimpact of acquisitions, divestitures and structural changes. There were no adjustments related to acquisitions,divestitures and structural changes for the three and six months ended July 2, 2021. In 2020, the company
discontinued our Odwalla juice business. The impact of discontinuing our Odwalla juice business has been includedin acquisitions, divestitures and structural changes in our analysis of net operating revenues on a consolidated basis
as well as for the North America operating segment.

•“Comparable operating income” is a non-GAAP financial measure that excludes or has otherwise been adjusted foritems impacting comparability (discussed further below). “Comparable currency neutral operating income” is a nonGAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability (discussed
further below) and the impact of changes in foreign currency exchange rates. “Comparable operating margin” is a15

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)
non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability(discussed further below). “Underlying operating margin” is a non-GAAP financial measure that excludes or hasotherwise been adjusted for items impacting comparability (discussed further below), the impact of changes inforeign currency exchange rates, and the impact of acquisitions, divestitures and structural changes, as applicable.
Management uses these non-GAAP financial measures to evaluate the company’s performance and make resource
allocation decisions. Further, management believes the comparable operating income (non-GAAP) growth measure,comparable currency neutral operating income (non-GAAP) growth measure, comparable operating margin (nonGAAP) measure and underlying operating margin (non-GAAP) measure enhance its ability to communicate theunderlying operating results and provide investors with useful supplemental information to enhance theirunderstanding of the company’s underlying business performance and trends by improving their ability to compare
our period-to-period financial results.
•“Comparable EPS” and “comparable currency neutral EPS” are non-GAAP financial measures that exclude or haveotherwise been adjusted for items impacting comparability (discussed further below). Comparable currency neutral
EPS (non-GAAP) has also been adjusted for the impact of changes in foreign currency exchange rates.
Management uses these non-GAAP financial measures to evaluate the company’s performance and make resource
allocation decisions. Further, management believes the comparable EPS (non-GAAP) and comparable currency
neutral EPS (non-GAAP) growth measures enhance its ability to communicate the underlying operating results andprovide investors with useful supplemental information to enhance their understanding of the company’s underlying
business performance and trends by improving their ability to compare our period-to-period financial results.

•“Underlying effective tax rate” is a non-GAAP financial measure that represents the estimated annual effective
income tax rate on income before income taxes, which excludes or has otherwise been adjusted for items impacting
comparability (discussed further below).

•“Free cash flow” is a non-GAAP financial measure that represents net cash provided by operating activities lesspurchases of property, plant and equipment. Management uses this non-GAAP financial measure to evaluate thecompany’s performance and make resource allocation decisions.

ITEMS IMPACTING COMPARABILITY
The following information is provided to give qualitative and quantitative information related to items impacting
comparability. Items impacting comparability are not defined terms within GAAP. Therefore, our non-GAAP financial
information may not be comparable to similarly titled measures reported by other companies. We determine which items
to consider as “items impacting comparability” based on how management views our business; makes financial,
operating, compensation and planning decisions; and evaluates the company’s ongoing performance. Items such as
charges, gains and accounting changes which are viewed by management as impacting only the current period or thecomparable period, but not both, or as pertaining to different and unrelated underlying activities or events acrosscomparable periods, are generally considered “items impacting comparability.” Items impacting comparability include, but
are not limited to, asset impairments, charges related to our strategic realignment initiatives, charges related to our
productivity and reinvestment initiatives, and transaction gains/losses, in each case when exceeding a U.S. dollar
threshold. Also included are our proportionate share of similar items incurred by our equity method investees, timing
differences related to our economic (non-designated) hedging activities, and timing differences related to unrealized markto-market adjustments of equity securities and trading debt securities, regardless of size. In addition, we provide theimpact that changes in foreign currency exchange rates had on our financial results (“currency neutral operating results”
defined above).

16THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)
Asset Impairments
During the three and six months ended June 26, 2020, the company recorded impairment charges of $8 million and$160 million, respectively, related to discontinuing our Odwalla juice business, and recorded an impairment charge of$55 million related to a trademark in North America, which was primarily driven by the impact of the COVID-19 pandemic,
revised projections of future operating results and a change in brand focus in the company’s portfolio. The company also
recorded an other-than-temporary impairment charge of $38 million related to one of our equity method investees in Latin
America. This impairment charge was primarily driven by the impact of the COVID-19 pandemic and management’s viewof the timing and extent of recovery. Additionally, the company recorded a charge of $13 million for the impairment of
goodwill in our bottling operations in the Middle East, which was primarily driven by a change in sugar tax laws, andrecorded impairment charges totaling $10 million related to several trademarks in Latin America, which were primarily
driven by the impact of the COVID-19 pandemic and management’s view of the timing and extent of recovery.
During the six months ended June 26, 2020, the company recorded an impairment charge of $26 million associated withan investment in an equity security without a readily determinable fair value, which was primarily driven by revised
projections of future operating results.
Strategic Realignment
In August 2020, the company announced strategic steps to transform our organizational structure in an effort to better
enable us to capture growth in the fast-changing marketplace. The company is building a networked global organization
comprised of operating units, category leads, platform services and the center. The operating units are highlyinterconnected with more consistency in the structure and a focus on eliminating duplication of resources and scaling new
products more quickly. The global marketing category leadership teams primarily focus on innovation, marketing efficiency
and effectiveness. The center provides strategy, governance and scale for global initiatives. The operating units, global
marketing category leadership teams, and the center are supported by platform services, which focuses on providing
efficient and scaled global services and capabilities including, but not limited to, governance, transactional work, data
management, consumer analytics, digital commerce and social/digital hubs. During the three and six months ended
July 2, 2021, the company recorded charges of $58 million and $205 million, respectively, which were primarily related toseverance costs and pension settlement charges associated with our strategic realignment initiatives.
Productivity and Reinvestment
During the three and six months ended July 2, 2021, the company recorded charges of $22 million and $40 million,
respectively. During the three and six months ended June 26, 2020, the company recorded charges of $22 million and$61 million, respectively. The costs incurred were primarily related to certain remaining initiatives designed to further
simplify and standardize our organization, which we expect to be completed by the end of 2022.
Equity Investees
During the three and six months ended July 2, 2021, the company recorded net charges of $60 million and $23 million,
respectively. During the three and six months ended June 26, 2020, the company recorded net charges of $63 million and$101 million, respectively. These amounts represent the company’s proportionate share of significant operating andnonoperating items recorded by certain of our equity method investees.
Transaction Gains/Losses
During the three and six months ended July 2, 2021, the company recorded a net gain, including transaction costs, of$694 million related to the sale of its ownership interest in Coca-Cola Amatil Limited, an equity method investee.
Additionally, during the three and six months ended July 2, 2021, the company recorded charges of $247 million and$251 million, respectively, related to the remeasurement of our contingent consideration liability to fair value in conjunction
with the fairlife, LLC (“fairlife”) acquisition.
During the three and six months ended June 26, 2020, the company recorded charges of $18 million and $29 million,
respectively, related to the remeasurement of our contingent consideration liability to fair value in conjunction with thefairlife acquisition. Additionally, during the three and six months ended June 26, 2020, the company recognized a17

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)$2 million gain related to the 2017 refranchising of our China bottling operations, resulting from post-closing adjustments
as contemplated by the related agreements.
During the six months ended June 26, 2020, the company recognized a gain of $902 million in conjunction with ouracquisition of the remaining ownership interest in fairlife, which resulted from the remeasurement of our previously held
equity interest in fairlife to fair value. The company also recognized gains totaling $23 million related to the sale of a
portion of our ownership interests in certain unconsolidated bottling operations.
Other Items
Economic (Non-Designated) Hedges
The company uses derivatives as economic hedges primarily to mitigate the foreign exchange risk for certain currencies,
certain interest rate risk, and the price risk associated with the purchase of materials used in our manufacturing processes
as well as the purchase of vehicle fuel. Although these derivatives were not designated and/or did not qualify for hedge
accounting, they are effective economic hedges. The changes in fair values of these economic hedges are immediately
recognized in earnings.
The company excludes the net impact of mark-to-market adjustments for outstanding hedges and realized gains/losses
for settled hedges from our non-GAAP financial information until the period in which the underlying exposure being
hedged impacts our condensed consolidated statement of income. Management believes this adjustment provides
meaningful information related to the impact of our economic hedging activities. During the three and six months ended
July 2, 2021, the net impact of the company’s adjustment related to our economic hedging activities resulted in decreasesof $136 million and $15 million, respectively, to our non-GAAP income before income taxes.
During the three and six months ended June 26, 2020, the net impact of the company’s adjustment related to our
economic hedging activities resulted in a decrease of $19 million and an increase of $32 million, respectively, to our nonGAAP income before income taxes.
Unrealized Gains and Losses on Equity and Trading Debt Securities
The company excludes the net impact of unrealized gains and losses resulting from mark-to-market adjustments on ourequity and trading debt securities from our non-GAAP financial information until the period in which the underlying
securities are sold and the associated gains or losses are realized. Management believes this adjustment provides
meaningful information related to the impact of our investments in equity and trading debt securities. During the three andsix months ended July 2, 2021, the net impact of the company’s adjustment related to unrealized gains and losses on ourequity and trading debt securities resulted in decreases of $181 million and $306 million, respectively, to our non-GAAP
income before income taxes.
During the three and six months ended June 26, 2020, the net impact of the company’s adjustment related to unrealized
gains and losses on our equity and trading debt securities resulted in a decrease of $253 million and an increase of$118 million, respectively, to our non-GAAP income before income taxes.
Extinguishment of Long-Term Debt
During the three and six months ended July 2, 2021, the company recorded charges of $592 million and $650 million,
respectively, related to the extinguishment of long-term debt.
Other
During the three and six months ended July 2, 2021, the company recorded net charges of $16 million and $35 million,
respectively, related to restructuring our manufacturing operations in the United States. During the three and six months
ended July 2, 2021, the company also recorded charges of $4 million and $13 million, respectively, related to tax litigation
expense.
During the three and six months ended June 26, 2020, the company recorded charges of $44 million related torestructuring our manufacturing operations in the United States and charges of $39 million related to discontinuing our
Odwalla juice business.

18

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)
Certain Tax Matters
During the three and six months ended July 2, 2021, the company recorded $9 million and $30 million, respectively, ofexcess tax benefits associated with the company’s stock-based compensation arrangements. Additionally, the company
recorded a tax benefit of $28 million related to the reversal of a valuation allowance on an equity method investment.
During the three and six months ended July 2, 2021, the company recorded net tax expense of $183 million and $177
million, respectively, related to changes in tax laws in certain foreign jurisdictions. During the three and six months ended
July 2, 2021, the company also recorded net tax expense of $24 million and $37 million, respectively, for changes to our
uncertain tax positions, including interest and penalties, as well as for various discrete tax items and recorded tax expenseof $13 million and $20 million, respectively, associated with return to provision adjustments.
During the three and six months ended June 26, 2020, the company recorded $1 million and $57 million, respectively, ofexcess tax benefits associated with the company’s stock-based compensation arrangements. During the three and six
months ended June 26, 2020, the company also recorded $10 million and $58 million, respectively, of net tax benefits forchanges to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters. During thesix months ended June 26, 2020, the company recorded $38 million of net tax benefits related to changes in tax laws incertain foreign jurisdictions.

19THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions except per share data)
Three Months Ended July 2, 2021

Reported (GAAP)Net
Cost ofoperating
goods
Gross
revenues
soldprofit$ 10,129 $ 3,787 $ 6,342

Selling,
general and
Other
Gross administrative operating Operating
marginexpenseschargesincome62.6% $
3,017 $
309 $ 3,016

Operatingmargin29.8%

Items Impacting Comparability:
Asset Impairments

—

—

—

—

—

—

Strategic Realignment

—

—

—

—

(29)

29

Productivity and Reinvestment

—

—

—

—

(22)

22

Equity Investees

—

—

—

—

—

—

Transaction Gains/Losses

—

—

—

(5)

(247)

252

Other Items

(4)

117

(121)

—

(11)

(110)

Certain Tax Matters

—

—

—

—

—

3,012 $

— $Comparable (Non-GAAP)$ 10,125 $ 3,904 $ 6,221

61.4% $

—
3,209

31.7%

Selling,
general and
Other
Gross administrative operating Operating
marginexpenseschargesincome57.9% $
1,983 $
173 $ 1,981

Operatingmargin27.7%

Three Months Ended June 26, 2020

Reported (GAAP)Net
Cost ofoperating
goods
Gross
revenues
soldprofit$7,150 $ 3,013 $ 4,137

Items Impacting Comparability:
Asset Impairments

—

—

—

—

(86)

86

Strategic Realignment

—

—

—

—

—

—

Productivity and Reinvestment

—

—

—

—

(22)

22

Equity Investees

—

—

—

—

—

—

Transaction Gains/Losses

—

—

—

—

(18)

18

Other Items

25

25

—

—

(47)

47

Certain Tax Matters

—

—

—

—

—

—

1,983 $

— $Comparable (Non-GAAP)$

7,175 $ 3,038 $ 4,137

57.7% $

2,154

Selling,
general andOtheradministrative operating Operating
expenseschargesincomeNet
operatingrevenues

Cost of
goods
sold

Gross
profit% Change — Reported (GAAP)

42

26

53

52

79

% Currency Impact

5

4

5

7

—

5

% Change — Currency Neutral (Non-GAAP)

37

21

48

45

—

48

% Change — Comparable (Non-GAAP)

41

28

50

52

—

49

% Comparable Currency Impact (Non-GAAP)% Change — Comparable Currency Neutral (NonGAAP)

5

4

5

7

—

3

37

24

46

45

—

46

52

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

20

30.0%

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions except per share data)
Three Months Ended July 2, 2021
Equity Other
income income
Interest (loss)(loss)
expense — net — netReported (GAAP)

$

909 $

Incomebeforeincometaxes

Incometaxes1

3,618 $

994

Effective
tax rateNet
income3

27.5%$

Dilutednet
incomeper share

780 $

402 $

2,641 $

0.61

Asset Impairments

—

—

—

—

—

—

—

Strategic Realignment

—

—

29

58

12

46

0.01

Productivity and Reinvestment

—

—

—

22

6

16

—

Equity Investees

—

60

—

60

—

60

0.01

Transaction Gains/Losses

—

—

(699)

(447)

(156)

(291)

(0.07)

(586)

—

(181)

295

16

279

0.06

—

—

—

—

(183)

183

0.04

194 $

462 $

58 $

3,606 $

689

2,934 $

0.68

Items Impacting Comparability:

Other Items
Certain Tax Matters
Comparable (Non-GAAP)$

19.1% 2 $Three Months Ended June 26, 2020
Equity Other
income income
Interest (loss)(loss)
expense — net — netReported (GAAP)$

Incomebeforeincometaxes

Incometaxes1

Effective
tax rateNet
income3

19.9%$

Dilutednet
incomeper share

274 $

176 $

214 $

2,197 $

438

1,779 $

0.41

Asset Impairments

—

—

38

124

18

106

0.02

Strategic Realignment

—

—

—

—

Productivity and Reinvestment

—

—

—

22

—

—

—

5

17

Equity Investees

—

63

—

63

—

2

61

0.01

Transaction Gains/Losses

—

—

(2)

16

4

12

—

Other Items

—

—

(236)

(189)

(42)

(147)

(0.03)

Items Impacting Comparability:

Certain Tax Matters
Comparable (Non-GAAP)

$

—

—

—

—

11

274 $

239 $

14 $

2,233 $

436

Equity Other
income income
Interest (loss)(loss)
expense — net — net

19.5%

$

(11)

—

1,817 $

0.42

Incomebeforeincometaxes

Incometaxes1

Net
income3

Dilutednet
incomeper share% Change — Reported (GAAP)

184

128

327

65

128

48

48

% Change — Comparable (Non-GAAP)

(29)

93

293

61

58

61

61

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability
with the exception of certain tax matters previously discussed.

2This does not include the impact of the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.

3

This represents net income attributable to shareowners of The Coca-Cola Company.

21

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions except per share data)
Six Months Ended July 2, 2021

Reported (GAAP)Net
Cost ofoperating
goods
Gross
revenues
soldprofit$ 19,149 $ 7,292 $ 11,857

Selling,
general and
Other
Gross administrative operating Operating
marginexpenseschargesincome61.9% $
5,686 $
433 $ 5,738

Operatingmargin30.0%

Items Impacting Comparability:
Asset Impairments

—

—

—

—

—

—

Strategic Realignment

—

—

—

—

(122)

122

Productivity and Reinvestment

—

—

—

—

(40)

40

Equity Investees

—

—

—

—

—

—

Transaction Gains/Losses

—

—

—

(5)

(251)

256

Other Items

(5)

168

(173)

—

(20)

(153)

Certain Tax Matters

—

—

—

—

—

5,681 $

— $Comparable (Non-GAAP)$ 19,144 $ 7,460 $ 11,684

61.0% $

—
6,003

31.4%

Selling,
general and
Other
Gross administrative operating Operating
marginexpenseschargesincome59.5% $
4,631 $
375 $ 4,361

Operatingmargin27.7%

Six Months Ended June 26, 2020

Reported (GAAP)Net
Cost ofoperating
goods
Gross
revenues
soldprofit$ 15,751 $ 6,384 $ 9,367

Items Impacting Comparability:
Asset Impairments

—

—

—

—

(238)

238

Strategic Realignment

—

—

—

—

—

—

Productivity and Reinvestment

—

—

—

—

(61)

61

Equity Investees

—

—

—

—

—

—

Transaction Gains/Losses

—

—

—

—

(29)

29

Other Items

(3)

(55)

52

—

(47)

99

Certain Tax Matters

—

—

—

—

—

—

4,631 $

— $Comparable (Non-GAAP)$ 15,748 $ 6,329 $ 9,419

59.8% $

4,788

Selling,
general andOtheradministrative operating Operating
expenseschargesincomeNet
operatingrevenues

Cost of
goods
sold

Gross
profit% Change — Reported (GAAP)

22

14

27

23

15

% Currency Impact

2

2

2

3

—

1

% Change — Currency Neutral (Non-GAAP)

20

12

25

20

—

31

% Change — Comparable (Non-GAAP)

22

18

24

23

—

25

% Comparable Currency Impact (Non-GAAP)% Change — Comparable Currency Neutral (NonGAAP)

2

2

2

3

—

1

20

16

22

20

—

24

32

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

22

30.4%

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions except per share data)
Six Months Ended July 2, 2021
Equity Other
income income
Interest (loss)(loss)
expense — net — netReported (GAAP)$ 1,222 $681 $ 1,047 $Incomebeforeincometaxes

Incometaxes1

Effective
tax rateNet
income3

6,381 $ 1,502

23.5%

$

Dilutednet
incomeper share

4,886 $

1.13

Items Impacting Comparability:
Asset Impairments

—

—

—

—

—

—

—

Strategic Realignment

—

—

83

205

44

161

0.04

Productivity and Reinvestment

—

—

—

40

12

28

0.01

Equity Investees

—

23

—

23

(4)

27

0.01

Transaction Gains/Losses

—

—

(699)

(443)

(155)

(288)

(0.07)

(833)

—

(303)

377

35

342

0.08

—

—

—

—

(176)

176

0.04

389 $

704 $

128 $

5,332 $

1.23

Other Items
Certain Tax Matters
Comparable (Non-GAAP)$

6,583 $ 1,258

19.1% 2 $Six Months Ended June 26, 2020
Equity Other
income income
Interest (loss)(loss)
expense — net — netReported (GAAP)$

Incomebeforeincometaxes

Incometaxes1

Effective
tax rateNet
income3

12.5%$

Dilutednet
incomeper share

467 $

343 $

758 $

5,207 $

653

4,554 $

1.05

Asset Impairments

—

—

64

302

61

241

0.06

Strategic Realignment

—

—

—

—

—

—

—

Productivity and Reinvestment

—

—

—

61

14

47

0.01

Equity Investees

—

101

—

101

3

98

0.02

Transaction Gains/Losses

—

—

(927)

(898)

39

(937)

(0.22)

Other Items

—

—

134

233

53

180

0.04

(153)

(0.04)

4,030 $

0.93

Items Impacting Comparability:

Certain Tax Matters
Comparable (Non-GAAP)

$

—

—

—

—

153

467 $

444 $

29 $

5,006 $

976

Equity Other
income income
Interest (loss)(loss)
expense — net — net

Incomebeforeincometaxes

Incometaxes1

19.5%

$

Net
income3

Dilutednet
incomeper share% Change — Reported (GAAP)

162

98

38

23

130

7

7

% Change — Comparable (Non-GAAP)

(17)

58

337

31

29

32

32

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
1

The income tax adjustments are the calculated income tax benefits (charges) at the applicable tax rate for each of the items impacting comparability
with the exception of certain tax matters previously discussed.

2This does not include the impact of the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.

3

This represents net income attributable to shareowners of The Coca-Cola Company.

23

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)
Diluted Net Income Per Share:
Three Months Ended
July 2, 2021

% Change — Reported (GAAP)

48% Currency Impact

6% Change — Currency Neutral (Non-GAAP)

42% Impact of Items Impacting Comparability (Non-GAAP)(13)% Change — Comparable (Non-GAAP)

61% Comparable Currency Impact (Non-GAAP)

5% Change — Comparable Currency Neutral (Non-GAAP)55

Six Months Ended
July 2, 2021

% Change — Reported (GAAP)

7% Currency Impact

1% Change — Currency Neutral (Non-GAAP)

6% Impact of Items Impacting Comparability (Non-GAAP)(25)% Change — Comparable (Non-GAAP)32% Comparable Currency Impact (Non-GAAP)

2% Change — Comparable Currency Neutral (Non-GAAP)30

Note: Certain columns may not add due to rounding.

24THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions)
Net Operating Revenues by Operating Segment and Corporate:
Three Months Ended July 2, 2021
Europe,Middle East
Latin
North
& Africa
America America
Reported (GAAP)

Asia
Pacific

GlobalBottling
Ventures Investments Corporate Eliminations Consolidated$

2,017 $ 1,067 $ 3,381 $ 1,503 $$2,018 $ 1,067 $ 3,381 $ 1,498 $707 $1,738 $

17 $(301) $

10,129Items Impacting Comparability:
Other Items
Comparable (Non-GAAP)

1

—

—

(5)

—

—

—

—

707 $

1,738 $

17 $(301) $

(4)
10,125Three Months Ended June 26, 2020
Europe,Middle East
Latin
North
& Africa
America America
Reported (GAAP)$

1,210 $$

1,210 $

Asia
Pacific

GlobalBottling
Ventures Investments Corporate Eliminations Consolidated

755 $ 2,648 $ 1,183 $295 $1,263 $

(12) $

—

—

21

295 $

1,263 $

(192) $

7,150

Items Impacting Comparability:
Other Items
Comparable (Non-GAAP)

—

—

4

—

755 $ 2,652 $ 1,183 $Europe,Middle East
Latin
North
& Africa
America America

Asia
Pacific

9 $

—

25

(192) $

7,175

GlobalBottling
Ventures Investments Corporate Eliminations Consolidated% Change — Reported (GAAP)

67

41

28

27

139

38

—

(57)

42

% Currency Impact

6

3

1

6

23

9

—

—

5

% Change — Currency Neutral(Non-GAAP)

61

39

27

21

117

29

—

—

37

% Acquisitions, Divestitures andStructural Changes

0

0

(1)

0

0

0

—

—

0

% Change — Organic Revenues(Non-GAAP)

61

39

28

21

117

29

—

—

37

% Change — Comparable (Non-GAAP)

67

41

27

27

139

38

91

—

41

% Comparable Currency Impact(Non-GAAP)

6

3

1

6

23

9

3

—

5

% Change — Comparable Currency
Neutral (Non-GAAP)

61

39

27

21

117

29

87

—

37

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

25

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions)
Net Operating Revenues by Operating Segment and Corporate:
Six Months Ended July 2, 2021
Europe,Middle East
Latin
North
& Africa
America America
Reported (GAAP)

Asia
Pacific

GlobalBottling
Ventures Investments Corporate Eliminations Consolidated$

3,640 $ 1,976 $ 6,318 $ 2,905 $ 1,277 $$

3,641 $ 1,976 $ 6,318 $ 2,899 $ 1,277 $

3,634 $

34 $(635) $

19,149Items Impacting Comparability:
Other Items
Comparable (Non-GAAP)

1

—

—

(6)

—

—

—

—

3,634 $

34 $(635) $

(5)
19,144Six Months Ended June 26, 2020
Europe,Middle East
Latin
North
& Africa
America America
Reported (GAAP)

Asia
Pacific

GlobalBottling
Ventures Investments Corporate Eliminations Consolidated$

2,935 $ 1,685 $ 5,498 $ 2,311 $$

2,935 $ 1,685 $ 5,502 $ 2,311 $868 $2,921 $

19 $(486) $

15,751

Items Impacting Comparability:
Other Items
Comparable (Non-GAAP)

—

—

4

Europe,Middle East
Latin
North
& Africa
America America—

Asia
Pacific

—

—

(7)

—

868 $

2,921 $

12 $(486) $

(3)
15,748GlobalBottling
Ventures Investments Corporate Eliminations Consolidated% Change — Reported (GAAP)

24

17

15

26

47

24

80

(31)

22

% Currency Impact

3

(5)

0

6

11

3

(36)

—

2

% Change — Currency Neutral(Non-GAAP)

21

22

15

20

36

22

116

—

20

% Acquisitions, Divestitures andStructural Changes

0

0

(1)

0

0

0

0

—

0

% Change — Organic Revenues(Non-GAAP)

21

22

15

20

36

22

116

—

20

% Change — Comparable (Non-GAAP)

24

17

15

25

47

24

189

—

22

% Comparable Currency Impact(Non-GAAP)

3

(5)

0

6

11

3

3

—

2

% Change — Comparable Currency
Neutral (Non-GAAP)

21

22

15

20

36

22

186

—

20

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

26

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions)Operating Income (Loss) by Operating Segment and Corporate:
Three Months Ended July 2, 2021
Europe,Middle East
& Africa
Reported (GAAP)

$

Latin
America

North
America

Asia
Pacific

GlobalVentures

Bottling
Investments

Corporate

Consolidated

1,142 $

678 $

950 $

766 $

75 $

92 $

(687) $

3,016

Asset Impairments

—

—

—

—

—

—

—

—

Strategic Realignment

11

—

1

—

—

—

17

29

Productivity and Reinvestment

—

—

—

—

—

—

22

22

Transaction Gains/Losses

—

—

—

—

—

—

252

252

Items Impacting Comparability:

Other Items
Comparable (Non-GAAP)

$

1

—

(92)

(5)

(3)

(15)

4

(110)

1,154 $

678 $

859 $

761 $

72 $

77 $

(392) $

3,209

Three Months Ended June 26, 2020
Europe,Middle East
& Africa
Reported (GAAP)

$

Latin
America

North
America

Asia
Pacific

GlobalVentures

Bottling
Investments

Corporate

Consolidated

715 $

504 $

489 $

652 $

(102) $

12 $(289) $

1,981

Asset Impairments

—

10

63

—

—

13

—

86

Strategic Realignment

—

—

—

—

—

—

—

—

Productivity and Reinvestment

—

—

—

—

—

—

22

22

Transaction Gains/Losses

—

—

—

—

—

—

18

18

Other Items

—

—

32

—

1

(5)

19

47

715 $

514 $

584 $

652 $

(101) $

20 $(230) $

2,154

Items Impacting Comparability:

Comparable (Non-GAAP)$

Europe,Middle East
& Africa

Latin
America

North
America

Asia
Pacific

GlobalVentures

Bottling
Investments

Corporate

Consolidated% Change — Reported (GAAP)

60

35

94

17

—

631

(137)

52

% Currency Impact

5

1

1

7

—

(147)

5

5

% Change — Currency Neutral (Non-GAAP)

54

34

93

10

—

778

(142)

48

% Impact of Items Impacting Comparability(Non-GAAP)

(2)

2

47

1

—

360

(67)

3

% Change — Comparable (Non-GAAP)

62

32

48

17

—

271

(71)

49

% Comparable Currency Impact (Non-GAAP)

6

1

1

7

—

(91)

(3)

3

% Change — Comparable Currency Neutral(Non-GAAP)

56

32

47

10

—

362

(68)

46

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

27

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions)Operating Income (Loss) by Operating Segment and Corporate:
Six Months Ended July 2, 2021
Europe,Middle East
& Africa
Reported (GAAP)

$

Latin
America

1,962 $

North
America

1,230 $

Asia
Pacific

GlobalVentures

1,742 $ 1,452 $Bottling
Investments

Corporate

101 $

233 $

Consolidated(982) $

5,738

Items Impacting Comparability:
Asset Impairments

—

—

—

—

—

—

—

—

Strategic Realignment

61

11

13

13

—

—

24

122

Productivity and Reinvestment

—

—

—

—

—

—

40

40

Transaction Gains/Losses

—

—

—

—

—

—

256

256

(138)

(6)

Other Items
Comparable (Non-GAAP)

$

1

—

2,024 $

1,241 $

1,617 $ 1,459 $

—

(23)

13

(153)

101 $

210 $

(649) $

6,003

Six Months Ended June 26, 2020
Europe,Middle East
& Africa
Reported (GAAP)

$

Latin
America

North
America

1,675 $

1,043 $

Asset Impairments—

Strategic Realignment—

Productivity and Reinvestment
Transaction Gains/Losses
Other Items

Asia
Pacific

GlobalVentures

Bottling
Investments

Corporate

Consolidated

876 $ 1,163 $(83) $

75 $(388) $

4,361

10

215

—

—

13

—

238

—

—

—

—

—

—

—

—

—

—

—

—

—

61

61

—

—

—

—

—

—

29

29

—

—

100

—

1

9

(11)

99

1,675 $

1,053 $

(82) $

97 $(309) $

4,788

Items Impacting Comparability:

Comparable (Non-GAAP)$

1,191 $ 1,163 $Europe,Middle East
& Africa

Latin
America

North
America

Asia
Pacific

GlobalVentures

Bottling
Investments

Corporate

Consolidated% Change — Reported (GAAP)

17

18

99

25

—

210

(153)

32

% Currency Impact

2

(5)

1

8

—

(42)

(4)

1

% Change — Currency Neutral (Non-GAAP)

15

23

98

17

—

252

(149)

31

% Impact of Items Impacting Comparability(Non-GAAP)

(4)

0

63

(1)

—

94

(43)

6

% Change — Comparable (Non-GAAP)

21

18

36

25

—

116

(110)

25

% Comparable Currency Impact (Non-GAAP)

3

(5)

1

7

—

(33)

(2)

1

% Change — Comparable Currency Neutral(Non-GAAP)

18

23

35

18

—

149

(108)

24

Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.

28

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures(UNAUDITED)(In millions unless noted)
Operating Margin:
Three Months Ended
July 2, 2021

Three Months Ended
June 26, 2020

Basis Point
Growth (Decline)

29.78 %

27.71 %

207

Reported Operating Margin (GAAP)
Items Impacting Comparability (Non-GAAP)(1.93)%(2.30)%

Comparable Operating Margin (Non-GAAP)

31.71 %

30.01 %

Comparable Currency Impact (Non-GAAP)(0.37)%

0.00 %

Comparable Currency Neutral Operating Margin (Non-GAAP)

32.08 %

30.01 %

Impact of Acquisitions, Divestitures and Structural Changes on
Comparable Currency Neutral Operating Margin (Non-GAAP)

0.00 %(0.21)%

Underlying Operating Margin (Non-GAAP)

32.08 %

30.22 %Six Months Ended
July 2, 2021

Reported Operating Margin (GAAP)

Six Months Ended
June 26, 2020

29.97 %

170
207

186

Basis Point
Growth (Decline)

27.69 %

Items Impacting Comparability (Non-GAAP)(1.39)%(2.71)%

Comparable Operating Margin (Non-GAAP)

31.36 %

30.40 %

Comparable Currency Impact (Non-GAAP)(0.24)%

0.00 %

Comparable Currency Neutral Operating Margin (Non-GAAP)

31.60 %

30.40 %

Impact of Acquisitions, Divestitures and Structural Changes on
Comparable Currency Neutral Operating Margin (Non-GAAP)

0.00 %(0.18)%

Underlying Operating Margin (Non-GAAP)

31.60 %

30.58 %

228
96
120

102

Free Cash Flow:
Six Months Ended
July 2, 2021

Six Months Ended
June 26, 2020

$ Change

Net Cash Provided by Operating Activities (GAAP)
Purchases of Property, Plant and Equipment (GAAP)$

5,525 $
(450)

2,786 $
(536)

2,739
86

Free Cash Flow (Non-GAAP)$

5,075 $

2,250 $

2,825

Projected 2021 Free Cash Flow (In billions):
Year Ending
December 31, 2021

Net Cash Provided by Operating Activities (GAAP)1
Purchases of Property, Plant and Equipment (GAAP)

$

10.5
(1.5)

Projected Free Cash Flow (Non-GAAP)

$

9.0

1

This does not include the impact of the ongoing tax litigation with the U.S. Internal Revenue Service, if the company were not to prevail.

29About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries
and territories. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar
brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes
Coca-Cola, Sprite and Fanta. Our hydration, sports, coffee and tea brands include Dasani, smartwater,
vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Honest and Ayataka. Our nutrition, juice, dairy
and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. We’reconstantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products tomarket. We seek to positively impact people’s lives, communities and the planet through water replenishment,
packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain.
Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity tolocal communities worldwide. Learn more at www.coca-colacompany.com and follow us on Twitter, Instagram,
Facebook and LinkedIn.

30

Forward-Looking Statements
This press release may contain statements, estimates or projections that constitute “forward-looking statements” asdefined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,”“project,” “will” and similar expressions identify forward-looking statements, which generally are not historical innature. Forward-looking statements are subject to certain risks and uncertainties that could cause The Coca-Cola
Company’s actual results to differ materially from its historical experience and our present expectations or
projections. These risks include, but are not limited to, the negative impacts of the COVID-19 pandemic on ourbusiness; an inability to realize the economic benefits from our productivity initiatives, including our reorganization
and related strategic realignment initiatives; an inability to attract or retain a highly skilled and diverse workforce;increased competition; an inability to renew collective bargaining agreements on satisfactory terms, or we or ourbottling partners experience strikes, work stoppages or labor unrest; an inability to be successful in our innovation
activities; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand
operations in emerging and developing markets; increased cost, disruption of supply or shortage of energy or fuel;increased cost, disruption of supply or shortage of ingredients, other raw materials, packaging materials, aluminumcans and other containers; an inability to successfully manage new product launches; obesity and other healthrelated concerns; evolving consumer product and shopping preferences; product safety and quality concerns;
perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners andbiotechnology-derived substances, and of other substances present in our beverage products or packaging
materials; damage to our brand image, corporate reputation and social license to operate from negative publicity,
whether or not warranted, concerning product safety or quality, workplace and human rights, obesity or other issues;
an inability to maintain good relationships with our bottling partners; deterioration in our bottling partners’ financial
condition; an inability to successfully integrate and manage consolidated bottling operations or other acquired
businesses or brands; an inability to successfully manage our refranchising activities; increases in income tax rates,changes in income tax laws or the unfavorable resolution of tax matters, including the outcome of our ongoing tax
dispute or any related disputes with the U.S. Internal Revenue Service (“IRS”); the possibility that the assumptions
used to calculate our estimated aggregate incremental tax and interest liability related to the potential unfavorable
outcome of the ongoing tax dispute with the IRS could significantly change; increased or new indirect taxes in the
United States and throughout the world; changes in laws and regulations relating to beverage containers andpackaging; significant additional labeling or warning requirements or limitations on the marketing or sale of our
products; litigation or legal proceedings; conducting business in markets with high-risk legal complianceenvironments; failure to adequately protect, or disputes relating to, trademarks, formulae and other intellectual
property rights; changes in, or failure to comply with, the laws and regulations applicable to our products or ourbusiness operations; fluctuations in foreign currency exchange rates; interest rate increases; unfavorable general
economic conditions in the United States and international markets; an inability to achieve our overall long-term
growth objectives; default by or failure of one or more of our counterparty financial institutions; impairment charges;
failure to realize a significant portion of the anticipated benefits of our strategic relationship with Monster Beverage
Corporation; an inability to protect our information systems against service interruption, misappropriation of data or
breaches of security; failure to comply with personal data protection and privacy laws; failure to digitize theCoca-Cola system; failure by our third-party service providers and business partners to satisfactorily fulfill theircommitments and responsibilities; increasing concerns about the environmental impact of plastic bottles and otherplastic packaging materials; water scarcity and poor quality; increased demand for food products and decreased
agricultural productivity; climate change and legal or regulatory responses thereto; adverse weather conditions; andother risks discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual
Report on Form 10-K for the year ended December 31, 2020 and our subsequently filed Quarterly Report on Form
10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. We undertake no obligation to publicly update or revise any
forward-looking statements.

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