The Coca-Cola Company Reports Second Quarter and Year-to-Date 2013 Results

  The Coca-Cola Company Reports Second Quarter and Year-to-Date 2013 Results

    1% global volume growth in the second quarter; 3% growth year to date

   Global volume and value share gains in total nonalcoholic ready-to-drink
              beverages as well as sparkling and still beverages

 Global brand Coca-Cola volume growth of 1% in the second quarter; 2% growth
                                 year to date

Second Quarter and Year-to-Date 2013 Highlights

  *Second quarter volume grew 1% and year-to-date volume grew 3%. Coca-Cola
    Americas grew 1% and Coca-Cola International grew 2% in the quarter.
  *Solid global volume and value share gains achieved in the quarter in total
    nonalcoholic ready-to-drink (NARTD) beverages as well as global volume and
    value share gains in sparkling and still beverages.
  *Reported net revenues declined 3% in the second quarter and 2% year to
    date. Excluding the impact of structural changes, comparable currency
    neutral net revenues grew 2% in both the quarter and year to date.
  *Reported operating income declined 2% in the second quarter and 3% year to
    date. Excluding the impact of structural changes, comparable currency
    neutral operating income grew 4% in the quarter and 5% year to date.
  *Currency was a 2% headwind on comparable net revenues and a 3% headwind on
    comparable operating income in the quarter.
  *Second quarter reported EPS was $0.59, down 3% and comparable EPS was
    $0.63, up 4%, including an approximate 2% currency headwind. Year-to-date
    reported EPS was $0.98, down 7% and comparable EPS was $1.09, up 4%
    despite two fewer selling days in the first half of 2013 and an
    approximate 4% currency headwind.

Business Wire

ATLANTA -- July 16, 2013

The Coca-Cola Company today reported second quarter and year-to-date 2013
results. Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola
Company said, “Our second quarter volume results came in below our
expectations, reflecting an ongoing challenging global macroeconomic
environment and unusually poor weather conditions in the quarter. While we are
not happy with our performance, we did gain global volume and value share in
total nonalcoholic ready-to-drink beverages as well as in sparkling and still
beverages in the quarter. Despite the headwinds in the quarter, we are
committed to improving upon our results, with current dynamics leading us to
believe that our performance will be better in the second half of the year. We
remain confident in our 2020 Vision and our system's ability to execute with
precision around the world. In this context, we remain firmly focused on
investing alongside our global bottling partners to strengthen our system for
the future, to deliver the brands and beverages that consumers love and to
achieve our long-term performance goals.”

PERFORMANCE HIGHLIGHTS

The Coca-Cola Company reported worldwide volume growth of 1% in the second
quarter and 3% year to date, and grew global volume and value share in the
quarter in total NARTD beverages as well as in both sparkling and still
beverages. Volume growth in the quarter was below the Company's expectations
due to a confluence of factors that collectively made for a challenging second
quarter. Slow economies in Europe, Asia and Latin America, and historically
wet and cold weather conditions across multiple regions impacted consumer
spending and, consequently, overall NARTD beverage industry performance.
Coca-Cola Americas grew volume 1% in the quarter and 2% year to date, with
North America volume down 1% and Latin America volume up 2% in the quarter.
Coca-Cola International grew volume 2% in the quarter and 4% year to date,
with second quarter Eurasia and Africa volume up 9%, Pacific volume up 2% and
Europe volume down 4%.

Worldwide sparkling beverage volume was even in the quarter and up 2% year to
date. Despite unseasonably cold and wet weather and continued volatile
macroeconomic conditions in many markets around the world, we grew global
volume and value share in sparkling beverages in the quarter, led by marketing
campaigns such as “Share a Coke” in Europe and “Coca-Cola Open Summer” in
North America. Worldwide brand Coca-Cola volume grew 1% in the quarter and 2%
year to date, with growth in the quarter across diverse markets, including
Thailand (+24%), India (+18%), Nigeria (+15%), Russia (+11%), Argentina (+7%)
and the Philippines (+7%). The Coca-Cola Company was recognized during the
quarter with the 2013 Creative Marketer of the Year Award at the Cannes Lions
International Festival of Creativity, widely considered to be the world's
foremost celebration of creative excellence in brand communications.

Worldwide still beverage volume grew 6% in both the quarter and year to date,
with solid volume and value share growth across beverage categories, including
packaged water, juices and juice drinks and ready-to-drink tea. Excluding the
impact of acquired volume, primarily the Aujan partnership in the Eurasia and
Africa Group, still beverage volume grew 4% in the quarter. Ready-to-drink tea
volume grew 10% in the quarter, with continued strong performance of key
brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in
Japan and Fuze Tea across multiple markets worldwide. Packaged water volume
grew 6% in the quarter, as we continue to focus on innovative and sustainable
packaging and immediate consumption occasions that help drive value share
growth ahead of volume share growth. Energy drinks volume grew 5% in the
quarter driven by growth across our global portfolio of energy brands. Juices
and juice drinks volume grew 4% in the quarter, with growth across all
geographic operating groups.

                      
OPERATING REVIEW
                                                                           
                         Three Months Ended June 28, 2013
                         % Favorable / (Unfavorable)
                                                                Comparable

                                                                Currency
                         Unit Case   Net        Operating
                                                           Neutral
                         Volume      Revenues   Income
                                                                Operating

                                                                Income
                                                           
Total Company            1          (3)       (2)             4
                                                           
Eurasia & Africa         9          5         12              19
Europe                   (4)        (1)       (7)             (3)
Latin America            2          6         6               13
North America            (1)        (1)       (3)             —
Pacific                  2          (5)       (3)             —
Bottling Investments     (16)       (10)      38              12
                                                                           
                                                                           
                         Six Months Ended June 28, 2013
                         % Favorable / (Unfavorable)
                                                                Comparable

                                                                Currency
                         Unit Case   Net        Operating
                                                                Neutral
                         Volume      Revenues   Income
                                                                Operating

                                                                Income
                                                           
Total Company            3          (2)       (3)             4
                                                           
Eurasia & Africa         11         7         9               16
Europe                   (2)        (2)       (5)             (2)
Latin America            3          5         4               11
North America            —          (1)       (11)            (1)
Pacific                  2          (5)       (2)             1
Bottling Investments     (12)       (7)       31              39

Eurasia & Africa

  *Our Eurasia and Africa Group's volume grew 9% in the quarter and 11% year
    to date (up 6% and 9%, respectively, excluding the benefit of acquired
    volume primarily from the Aujan partnership), cycling 10% growth in the
    prior year quarter. All business units in the group achieved volume growth
    in the quarter, led by Middle East and North Africa, up 17% (up 9%
    excluding the benefit of acquired volume); Central, East and West Africa,
    up 10%, and Russia, up 3%. Reported net revenues for the quarter increased
    5%, reflecting a 7% increase in concentrate sales and positive price/mix
    of 4%, partially offset by a 6% currency headwind. Comparable currency
    neutral net revenues increased 11% in the quarter. After adjusting for
    unit case sales without concentrate sales equivalents, concentrate sales
    in the quarter slightly lagged unit case sales due to timing, but year to
    date they are in line. Reported operating income increased 12% in the
    quarter. Comparable currency neutral operating income increased 19% in the
    quarter, driven by volume, pricing and product mix, as well as efficient
    expense management, partially offset by continued investments in the
    business.
  *During the quarter, Eurasia and Africa grew volume and value share in
    total NARTD beverages. Sparkling beverage volume grew 7% in the quarter,
    led by brand Coca-Cola, which also grew 7%. This growth was due to a
    continued focus on driving executional capabilities in the marketplace,
    greater consumer choice in package and price options, integrated marketing
    campaigns such as “Coca-Cola Crazy for Good” and “Coke with Meals”, as
    well as the expansion of the Coke Studio music competition. Sprite volume
    grew 6% in the quarter and Fanta volume grew 5% as new campaigns were
    launched across multiple markets. Still beverage volume grew 15% in the
    quarter, including the benefit of acquired brands which added eight points
    of volume growth to overall Eurasia and Africa still beverages. In Russia,
    key contributors to volume growth in the quarter were brand Coca-Cola, up
    11%, Fanta Orange, up 9% and Schweppes, up 31%. We gained volume and value
    share in total NARTD beverages in Russia, with a strong marketing calendar
    tied to the 2014 Sochi Winter Olympics and supported in the quarter by our
    largest-ever consumer promotion in the country offering an under-the-cap
    points program to redeem for Winter Olympics-themed glassware.

Europe

  *Our Europe Group's volume declined 4% in the quarter and 2% year to date,
    cycling a 4% decline in the prior year quarter. Although we grew share,
    the quarter was marked by particularly poor weather across many countries,
    including severe flooding in parts of Germany and Central Europe, as well
    as ongoing weakness in consumer confidence and spending across the region,
    which have impacted the entire NARTD beverage industry. Reported net
    revenues declined 1% in the quarter, reflecting a 3% decline in
    concentrate sales and a 2% currency headwind, partially offset by positive
    price/mix of 4%. Price/mix includes the benefit of consolidating the
    innocent juice and smoothie business starting in May 2013. Comparable
    currency neutral net revenues increased 1% in the quarter. After adjusting
    for unit case sales without concentrate sales equivalents, concentrate
    sales in the quarter were in line with unit case sales. Reported operating
    income declined 7% in the quarter. Comparable currency neutral operating
    income declined 3% in the quarter, reflecting the decline in volume,
    partially offset by efficient expense management and the timing of
    operating expenses.
  *During the quarter, the Europe Group grew volume and value share in total
    NARTD beverages as well as in sparkling beverages, juices and juice drinks
    and energy drinks despite continued weak industry trends. In addition, we
    gained share in ready-to-drink tea. A key marketing campaign launched in
    markets throughout Europe late in the quarter, titled “Share a Coke”,
    placed the names of individual consumers on our iconic Coca-Cola bottles
    and cans. To date, the campaign has received positive consumer feedback
    and it has now been extended and expanded as a result. Although Germany
    and Northwest Europe and Nordics volume declined low single digits in the
    quarter, we gained volume and value share in total NARTD beverages as well
    as in sparkling beverages. The Iberia and Central and Southern Europe
    regions continue to manage through very tough macroeconomic conditions
    with ongoing brand-building programs and an occasion-based package, price
    and channel segmentation strategy.

Latin America

  *Our Latin America Group's volume grew 2% in the quarter and 3% year to
    date, cycling 3% growth in the prior year quarter. Volume growth in the
    quarter was led by Latin Center, up 7%, South Latin, up 5% and Mexico, up
    1%. Brazil volume was even in the quarter, cycling 6% growth in the prior
    year quarter and reflecting some consumer uncertainty given the economic
    slowdown and protests late in the quarter. Reported net revenues for the
    quarter increased 6%, reflecting concentrate sales growth of 2% and
    positive price/mix of 9%, partially offset by a currency headwind of 5%.
    Comparable currency neutral net revenues increased 11% in the quarter.
    Reported operating income was up 6% in the quarter, with comparable
    currency neutral operating income up 13%, primarily reflecting volume,
    pricing and product mix, partially offset by increased investments in
    support of the 2013 FIFA Confederations Cup and upcoming 2014 FIFA World
    Cup.
  *During the quarter, the Latin America Group gained share in total NARTD
    and sparkling beverages as well as both volume and value share in still
    beverages. This performance was driven by continued activation of brand
    and category campaigns such as “Crazy for Good” and “140 Calories”,
    previously launched in Brazil, Mexico and Colombia and now expanded to
    Central America, as well as investments in cold-drink equipment and
    continued segmentation across multiple price points and package sizes. In
    addition, late in the quarter we launched Coca-Cola Life in Argentina, our
    first low-calorie cola naturally sweetened with stevia leaf extract and
    sugar. In the quarter, brand Coca-Cola volume was up 1% and both Sprite
    and Fanta volumes were up 4%. Still beverage volume grew 8% in the
    quarter, driven by growth in ready-to-drink tea, juices and juice drinks,
    sports drinks and packaged water. We gained both volume and value share in
    total NARTD beverages across multiple markets, including Mexico, Argentina
    and Colombia.

North America

  *Our North America Group's volume declined 1% in the quarter and was even
    year to date, cycling 1% growth in the prior year quarter. Volume was
    under pressure due to unseasonably cold and wet weather and the timing of
    the Easter and July 4^th holiday periods as well as weakened consumer
    spending that has impacted the overall NARTD beverage industry in North
    America. Reported and comparable currency neutral net revenues for the
    quarter declined 1%, reflecting a 1% decline in “as reported” volume and
    even price/mix, including positive 1% price/mix for sparkling beverages.
    Second quarter reported operating income declined 3%. Comparable currency
    neutral operating income was even in the quarter, reflecting the volume
    performance and continued investment in our brands as well as the impact
    of structural changes, offset by efficient management of operating
    expenses.
  *During the quarter, North America maintained volume share and grew value
    share in total NARTD beverages as we continued to focus on our core
    strategies of building strong brands, creating value with customers and
    enhancing system capabilities. In addition, we gained volume and value
    share in both sparkling and still beverages, with volume and value share
    gains across every still beverage category except sports drinks. Sparkling
    beverage volume declined 4% in the quarter with sparkling beverage
    price/mix growth of 1% and value share growing ahead of volume share, as
    we remain committed to a rational pricing environment. Still beverage
    volume grew 5% in the quarter, led by strong performance across both the
    ready-to-drink tea and packaged water categories with brands such as Gold
    Peak, smartwater and Dasani leading the way. Further, our volume and value
    share gains in the juices and juice drinks category were driven by 4%
    volume growth for Simply and 3% growth for Minute Maid.

Pacific

  *Our Pacific Group's volume grew 2% in both the quarter and year to date,
    cycling 10% growth in the prior year quarter. Reported net revenues for
    the quarter declined 5%, reflecting 4% concentrate sales growth, offset by
    a 4% decline in price/mix and a 5% currency headwind. The unfavorable
    price/mix in the quarter was primarily a result of geographic mix, as we
    cycled product launches in Japan in the prior year, as well as shifts in
    product and package mix within individual markets. Comparable currency
    neutral net revenues were even. Concentrate sales in the quarter were
    ahead of unit case sales due to timing, primarily in China. For the full
    year, we expect concentrate sales to be in line with unit case sales.
    Reported operating income decreased 3% in the quarter, reflecting
    geographic mix and a 2% currency headwind. In addition, reported operating
    income reflects a benefit related to structural changes. Comparable
    currency neutral operating income was even in the quarter.
  *Volume growth in the quarter was wide ranging, with 28% growth in Vietnam,
    22% growth in Indonesia, 17% growth in Thailand and 1% growth in both
    Japan and India. Volume performance was even in both China and the
    Philippines in the quarter. Sparkling beverage volume growth was even in
    the quarter, yet brand Coca-Cola grew 3% and Fanta grew 7%. Still
    beverages grew 4% in the quarter, with 7% growth in packaged water, 5%
    growth in ready-to-drink tea and 6% growth in sports drinks. Japan's
    sparkling beverage volume grew 1% in the quarter, supported by
    music-themed integrated marketing campaigns such as the “Zero Limit”
    campaign for Coca-Cola Zero, up 13%. India volume growth of 1% in the
    quarter was cycling 20% growth in the prior year quarter and reflects the
    impact of an earlier and heavier than normal monsoon season in 2013 and
    cycling a later than normal monsoon season in the prior year. Importantly
    we gained volume and value share in India in the quarter in total NARTD
    beverages as well as in both sparkling and still beverages. Our second
    quarter volume performance in China continued to be impacted by the
    economic slowdown, poor weather and competitive activity such as package
    upsizing. Despite this, still beverages grew 4% in the quarter, driven by
    juices and juice drinks and packaged water. As we look ahead to the
    remainder of 2013, we continue to expect the industry and our business to
    be impacted by China's economic slowdown. However, we are evolving our
    strategies in China and we anticipate a return to growth in our business
    in the second half of the year.

Bottling Investments

  *Our Bottling Investments Group's (BIG) volume grew 1% in the quarter and
    2% year to date after adjusting for the net impact of structural changes,
    primarily the deconsolidation of the Philippine bottling operations in
    2013. BIG volume including the impact of structural changes was down 16%
    in the quarter and 12% year to date. The growth in volume in the quarter
    after adjusting for the impact of structural changes was led by India,
    with strong volume and value share gains, as well as markets within BIG's
    Southeast Asian operations. Reported net revenues for the quarter declined
    10%. This reflects the 1% volume growth and positive price/mix of 1%,
    offset by a currency headwind of 1% and an 11% net impact due to
    structural changes. Comparable currency neutral net revenues declined 10%
    in the quarter. Reported operating income in the quarter grew 38%.
    Comparable currency neutral operating income increased 12% in the quarter,
    reflecting positive pricing and product mix in certain markets, partially
    offset by continuing investments in our in-market capabilities.

FINANCIAL REVIEW

Second quarter reported net revenues declined 3%, with comparable net revenues
also down 3%. This reflects a 1% increase in concentrate sales, offset by a 2%
impact from structural changes and a 2% currency headwind. The structural
changes in the quarter primarily reflect the deconsolidation of the Philippine
bottling operations in 2013. We achieved solid pricing across key markets
around the world leading to global NARTD value share growth for the 24^th
consecutive quarter. Price/mix in the quarter was even, as the benefit of
positive pricing was offset by geographic mix, and as we cycled positive 3%
price/mix in the prior year quarter. Excluding the impact of structural
changes, comparable currency neutral net revenues grew 2% in both the quarter
and year to date. We anticipate that the Philippine bottling transaction,
together with the bottling transaction in Brazil which closed earlier this
month, will reduce our full-year 2013 net revenues by 3%.

Reported and comparable cost of goods sold decreased 5% in the quarter,
reflecting a 1% increase in concentrate sales offset by the impact of
structural changes, primarily the deconsolidation of the Philippine bottling
operations in 2013. Currency reduced comparable cost of goods sold in the
quarter by 2%. Excluding the impact of structural changes, comparable currency
neutral cost of goods sold was even in the quarter. Items impacting
comparability in the quarter primarily included net gains/losses on
commodities hedging.

Reported SG&A expenses declined 3% in the quarter and comparable SG&A expenses
declined 2%. Currency reduced comparable SG&A expenses by 1% in the quarter.
Excluding the impact of structural changes, comparable currency neutral SG&A
expenses grew 1% in the quarter, including a strong increase in direct
marketing expenses, and we captured two points of operating expense leverage.
The structural changes in the quarter primarily reflect the deconsolidation of
the Philippine bottling operations in 2013. Operating expense leverage in the
quarter was impacted by the reversal of certain expenses related to our
long-term incentive plans. A portion of our stock-based compensation is based
on multi-year performance periods and includes the impact of currency, which
we now estimate will be a headwind of 4% on operating income for the full year
versus our expectation at the end of the first quarter of a 2% headwind. We
now expect to achieve low single-digit operating expense leverage for the full
year after excluding the impact of structural changes.

Second quarter reported operating income decreased 2%. Excluding the impact of
structural changes, primarily the deconsolidation of the Philippine bottling
operations in 2013, comparable currency neutral operating income grew 4% in
the quarter and 5% year to date. Items impacting comparability reduced second
quarter 2013 operating income by $175 million and reduced second quarter 2012
operating income by $119 million. Currency reduced comparable operating income
by 3% in the quarter. Including our hedge positions, current spot rates and
the cycling of our prior year rates, we estimate currency will have a  4%
unfavorable impact on comparable operating income for both the third quarter
and the full year. Further, we anticipate that the Philippine bottling
transaction, together with the bottling transaction in Brazil that closed
earlier this month, will have a 1% structural impact on our full-year 2013
operating income, with this decline offset by a corresponding improvement in
equity income.

Year-to-date net share repurchases totaled $2.0 billion. We are targeting net
share repurchases of $3.0 to $3.5 billion for the full year.

Second quarter reported EPS was $0.59 and comparable EPS was $0.63. Items
impacting comparability reduced second quarter 2013 reported EPS by a net
$0.04 and had no net impact on second quarter 2012 reported EPS. In both
periods, these items included restructuring charges, costs related to global
productivity initiatives, transaction gains/losses, net gains/losses related
to our economic hedges, primarily commodities, and certain tax matters. Items
impacting comparability in second quarter 2012 also included charges related
to changes in the structure of Beverage Partners Worldwide (BPW) and charges
related to the supply of Brazilian orange juice.

Year-to-date cash from operations was $3,956 million, down 5% versus the prior
year, primarily due to the impact of two fewer selling days in the period, an
unfavorable impact from currency, and an increase in the use of working
capital in preparation for the peak season of our growing global business.

Effective Tax Rate

As discussed in the first quarter 2013 earnings release, we had previously
estimated that the underlying effective tax rate on operations would be 23.5%
for 2013. We now anticipate that the underlying effective tax rate on
operations for 2013 will be 23.0%. We expect this rate to remain unchanged
through 2014. We are required to record income tax expense for the first six
months of the year based on the estimated underlying effective tax rate for
the full year. To bring the effective tax rate for the first six months of
2013 in line with the current estimated full year underlying effective tax
rate, we recorded income tax expense at an underlying effective tax rate of
22.6% for the second quarter.

The reported effective tax rate for the quarter was 23.5%. The variance
between the reported rate and the underlying rate was due to the tax effect of
various items impacting comparability, separately disclosed in this document
in the Reconciliation of GAAP and Non-GAAP Financial Measures schedule.

The underlying effective tax rate does not reflect the impact of significant
or unusual items and discrete events, which, if and when they occur, are
separately recognized in the appropriate period.

Items Impacting Prior Year Results

First quarter 2012 results included a net gain of $0.01 per share due to gains
related to equity investees, partially offset by restructuring charges, costs
related to global productivity initiatives, charges related to changes in the
structure of BPW and charges related to the supply of Brazilian orange juice.

Items impacting results had no net effect on second quarter 2012 reported EPS.
These items included a transaction gain and certain tax matters, offset by
restructuring charges, costs related to global productivity initiatives,
charges related to changes in the structure of BPW and charges related to the
supply of Brazilian orange juice.

NOTES

  *All references to growth rate percentages, share and cycling of growth
    rates compare the results of the period to those of the prior year
    comparable period.
  *“Concentrate sales” represents the amount of concentrates, syrups,
    beverage bases and powders sold by, or used in finished beverages sold by,
    the Company to its bottling partners or other customers.
  *“Sparkling beverages” means NARTD beverages with carbonation, including
    energy drinks and carbonated waters and flavored waters.
  *“Still beverages” means nonalcoholic beverages without carbonation,
    including noncarbonated waters, flavored waters and enhanced waters,
    juices and juice drinks, teas, coffees, sports drinks and noncarbonated
    energy drinks.
  *All references to volume and volume percentage changes indicate unit case
    volume, except for the reference to volume included in the explanation of
    net revenue growth for North America. All volume percentage changes,
    unless otherwise noted, are computed based on average daily sales. “Unit
    case” means a unit of measurement equal to 24 eight-ounce servings of
    finished beverage. “Unit case volume” means the number of unit cases (or
    unit case equivalents) of Company beverages directly or indirectly sold by
    the Company and its bottling partners to customers.
  *For both North America and Bottling Investments Group, net revenue growth
    attributable to volume reflects the percentage change in “as reported”
    volume, which is based on as reported sales rather than average daily
    sales and includes the impact of structural changes, where applicable. For
    North America, this volume represents Coca-Cola Refreshments' unit case
    sales (which are equivalent to concentrate sales) plus concentrate sales
    to non-Company-owned bottling operations.
  *Year-to-date 2013 financial results were impacted by two fewer selling
    days, and fourth quarter 2013 financial results will be impacted by one
    additional selling day. Unit case volume results for the quarters are not
    impacted by the variance in selling days due to the average daily sales
    computation referenced above.
  *In January 2012, the Company announced that Beverage Partners Worldwide
    (BPW), our joint venture with Nestlé in the ready-to-drink tea category,
    will focus its geographic scope primarily in Europe and Canada. The joint
    venture was phased out in all other territories by the end of 2012, and
    the Company's agreement to distribute products in the United States
    terminated at the end of 2012. We have eliminated the BPW and Nestlé
    licensed volume and associated concentrate sales for the year ended
    December 31, 2012 in those countries impacted by these structural changes.
  *As previously announced, effective January 1, 2013, the Company
    transferred our India and South West Asia business unit from the Eurasia
    and Africa operating segment to the Pacific operating segment. The
    countries included in our India and South West Asia business unit are
    Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka. This change
    in organizational structure did not impact the other geographic operating
    segments, Bottling Investments or Corporate. The reclassified historical
    operating segment data reflecting the change in organizational structure
    was disclosed in a Form 8-K filed with the U.S. Securities and Exchange
    Commission on March 21, 2013.
  *The Company reports its financial results in accordance with accounting
    principles generally accepted in the United States (GAAP). However,
    management believes that certain non-GAAP financial measures provide users
    with additional meaningful financial information that should be considered
    when assessing our ongoing performance. Management also uses these
    non-GAAP financial measures in making financial, operating and planning
    decisions and in evaluating the Company's performance. Non-GAAP financial
    measures should be viewed in addition to, and not as an alternative for,
    the Company's reported results prepared in accordance with GAAP. Our
    non-GAAP financial information does not represent a comprehensive basis of
    accounting.

CONFERENCE CALL

We are hosting a conference call with investors and analysts to discuss second
quarter and year-to-date 2013 results today, July 16, 2013 at 9:30 a.m. EDT.
We invite investors to listen to a live audiocast of the conference call at
our website, http://www.coca-colacompany.com in the “Investors” section. A
replay in downloadable MP3 format will also be available within 24 hours after
the audiocast on our website. Further, the “Investors” section of our website
includes a reconciliation of non-GAAP financial measures that may be used
periodically by management when discussing our financial results with
investors and analysts to our results as reported under GAAP.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
                                                              
                             Three Months Ended
                             June 28,             June 29,            %

                             2013                 2012                Change^1
Net Operating                $   12,749           $  13,085           (3)
Revenues
Cost of goods sold         4,989             5,224            (5)
Gross Profit                 7,760                7,861               (1)
Selling, general
and administrative           4,385                4,497               (3)
expenses
Other operating            132               70               90
charges
Operating Income             3,243                3,294               (2)
Interest income              129                  112                 16
Interest expense             122                  112                 9
Equity income                246                  245                 1
(loss) — net
Other income (loss)        29                84               (67)
— net
Income Before                3,525                3,623               (3)
Income Taxes
Income taxes               831               823              1
Consolidated Net             2,694                2,800               (4)
Income
Less: Net income
attributable to            18                12               56
noncontrolling
interests
Net Income
Attributable to            $   2,676         $  2,788         (4)
Shareowners of The
Coca-Cola Company
Diluted Net Income         $   0.59          $  0.61          (3)
Per Share^2
Average Shares
Outstanding —              4,527             4,592            
Diluted^2
^1 Certain growth rates may not recalculate using the rounded dollar amounts
provided.
^2 For the three months ended June 28, 2013, and June 29, 2012, basic net
income per share was $0.60 for 2013 and $0.62 for 2012 based on average shares
outstanding — basic of 4,446 for 2013 and 4,511 for 2012. Basic net income per
share and diluted net income per share are calculated based on net income
attributable to shareowners of The Coca-Cola Company.
                                                                      

THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(UNAUDITED)
(In millions except per share data)
                                                              
                             Six Months Ended
                             June 28,             June 29,            %

                             2013                 2012                Change^1
Net Operating                $   23,784           $  24,222           (2)
Revenues
Cost of goods sold         9,313             9,572            (3)
Gross Profit                 14,471               14,650              (1)
Selling, general
and administrative           8,567                8,678               (1)
expenses
Other operating            253               169              50
charges
Operating Income             5,651                5,803               (3)
Interest income              245                  227                 8
Interest expense             224                  200                 12
Equity income                333                  385                 (13)
(loss) — net
Other income (loss)        (136        )      133              N/A
— net
Income Before                5,869                6,348               (8)
Income Taxes
Income taxes               1,406             1,481            (5)
Consolidated Net             4,463                4,867               (8)
Income
Less: Net income
attributable to            36                25               43
noncontrolling
interests
Net Income
Attributable to            $   4,427         $  4,842         (9)
Shareowners of The
Coca-Cola Company
Diluted Net Income         $   0.98          $  1.05          (7)
Per Share^2
Average Shares
Outstanding —              4,528             4,596            
Diluted^2
^1 Certain growth rates may not recalculate using the rounded dollar amounts
provided.
^2 For the six months ended June 28, 2013, and June 29, 2012, basic net income
per share was $0.99 for 2013 and $1.07 for 2012 based on average shares
outstanding — basic of 4,450 for 2013 and 4,518 for 2012. Basic net income per
share and diluted net income per share are calculated based on net income
attributable to shareowners of The Coca-Cola Company.
                                                                      


THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(UNAUDITED)
(In millions except par value)
                                                             
                                                   June 28,       December 31,

                                                   2013           2012
ASSETS
Current Assets
Cash and cash equivalents                          $ 9,406        $  8,442
Short-term investments                           6,634       5,017      
Total Cash, Cash Equivalents and Short-Term      16,040      13,459     
Investments
Marketable securities                              3,173          3,092
Trade accounts receivable, less allowances of      5,516          4,759
$55 and $53, respectively
Inventories                                        3,643          3,264
Prepaid expenses and other assets                  3,055          2,781
Assets held for sale                             1,145       2,973      
Total Current Assets                             32,572      30,328     
Equity Method Investments                          9,511          9,216
Other Investments, Principally Bottling            1,318          1,232
Companies
Other Assets                                       3,855          3,585
Property, Plant and Equipment — Net                14,549         14,476
Trademarks With Indefinite Lives                   6,541          6,527
Bottlers' Franchise Rights With Indefinite         7,410          7,405
Lives
Goodwill                                           12,657         12,255
Other Intangible Assets                          1,098       1,150      
Total Assets                                     $ 89,511    $  86,174  
                                                                  
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses              $ 10,047       $  8,680
Loans and notes payable                            18,314         16,297
Current maturities of long-term debt               3,193          1,577
Accrued income taxes                               447            471
Liabilities held for sale                        468         796        
Total Current Liabilities                        32,469      27,821     
Long-Term Debt                                     14,179         14,736
Other Liabilities                                  4,934          5,468
Deferred Income Taxes                              5,298          4,981
The Coca-Cola Company Shareowners' Equity
Common stock, $0.25 par value; Authorized —
11,200 shares; Issued — 7,040 and 7,040            1,760          1,760
shares, respectively
Capital surplus                                    11,990         11,379
Reinvested earnings                                59,978         58,045
Accumulated other comprehensive income (loss)      (4,083   )     (3,385     )
Treasury stock, at cost — 2,606 and 2,571        (37,422  )   (35,009    )
shares, respectively
Equity Attributable to Shareowners of The          32,223         32,790
Coca-Cola Company
Equity Attributable to Noncontrolling            408         378        
Interests
Total Equity                                     32,631      33,168     
Total Liabilities and Equity                     $ 89,511    $  86,174  


THE COCA-COLA COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(UNAUDITED)
(In millions)
                                                                
                                                       Six Months Ended
                                                       June 28,      June 29,

                                                       2013          2012
Operating Activities
Consolidated net income                                $ 4,463       $ 4,867
Depreciation and amortization                          947           955
Stock-based compensation expense                       92            166
Deferred income taxes                                  100           53
Equity (income) loss — net of dividends                (132    )     (143    )
Foreign currency adjustments                           159           (82     )
Significant (gains) losses on sales of assets —        (23     )     (106    )
net
Other operating charges                                83            99
Other items                                            22            32
Net change in operating assets and liabilities       (1,755  )   (1,663  )
Net cash provided by operating activities            3,956      4,178   
Investing Activities
Purchases of investments                               (7,077  )     (8,617  )
Proceeds from disposals of investments                 5,224         2,038
Acquisitions of businesses, equity method              (308    )     (755    )
investments and nonmarketable securities
Proceeds from disposals of businesses, equity
method investments and                                 690           11

nonmarketable securities
Purchases of property, plant and equipment             (1,069  )     (1,305  )
Proceeds from disposals of property, plant and         57            57
equipment
Other investing activities                           (225    )   11      
Net cash provided by (used in) investing             (2,708  )   (8,560  )
activities
Financing Activities
Issuances of debt                                      22,779        21,964
Payments of debt                                       (19,454 )     (18,101 )
Issuances of stock                                     951           995
Purchases of stock for treasury                        (2,978  )     (2,610  )
Dividends                                              (1,249  )     (1,155  )
Other financing activities                           87         55      
Net cash provided by (used in) financing             136        1,148   
activities
Effect of Exchange Rate Changes on Cash and Cash     (420    )   (232    )
Equivalents
Cash and Cash Equivalents
Net increase (decrease) during the period              964           (3,466  )
Balance at beginning of period                       8,442      12,803  
Balance at end of period                             $ 9,406    $ 9,337 


THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)

Three Months Ended
                                                                                                             
                Net Operating Revenues                       Operating Income (Loss)                    Income (Loss) Before Income Taxes
                  June 28,         June 29,         % Fav. /     June 28,        June 29,        % Fav. /     June 28,        June 29,        % Fav. /
                2013           2012                      2013          2012                     2013          2012         
                                                     (Unfav.)                                     (Unfav.)                                     (Unfav.)
Eurasia &          $ 765          $ 728          5          $ 332         $ 296         12         $ 351         $ 307         15
Africa
Europe             1,468            1,487            (1)          836             897             (7)          869             916             (5)
Latin              1,215            1,145            6            726             686             6            730             687             6
America
North              5,713            5,797            (1)          731             756             (3)          732             761             (4)
America
Pacific            1,730            1,827            (5)          847             874             (3)          853             871             (2)
Bottling           2,238            2,497            (10)         125             90              38           354             312             13
Investments
Corporate          53               52               4            (354    )       (305    )       (16)         (364    )       (231    )       (58)
Eliminations    (433     )    (448     )    3          —           —           N/A        —           —           N/A
Consolidated    $ 12,749     $ 13,085     (3)        $ 3,243     $ 3,294     (2)        $ 3,525     $ 3,623     (3)

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

During the three months ended June28, 2013, the results of our operating
segments were impacted by the following items:

  *Intersegment revenues were $175 million for Europe, $76 million for Latin
    America, $5 million for North America, $157 million for Pacific and $20
    million for Bottling Investments.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $6 million for Europe, $55 million for North America, $6million for
    Pacific, $20 million for Bottling Investments and $46 million for
    Corporate due to charges related to the Company's productivity and
    reinvestment program as well as other restructuring initiatives. Operating
    income (loss) and income (loss) before income taxes were increased by $1
    million for Pacific and $1 million for Corporate due to the refinement of
    previously established accruals related to the Company's 2008–2011
    productivity initiatives.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $6 million for Corporate due to transaction costs associated with
    certain of the Company's bottling partners.
  *Income (loss) before income taxes was reduced by $144 million for
    Corporate due to charges related to the pending merger of four of the
    Company's Japanese bottling partners.
  *Income (loss) before income taxes was increased by $139 million for
    Corporate due to a gain the Company recognized as a result of Coca-Cola
    FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA") issuing additional shares of its
    own stock during the period at a per share amount greater than the
    carrying value of the Company's per share investment.
  *Income (loss) before income taxes was reduced by $23 million for Corporate
    due to a charge the Company recognized on the early extinguishment of
    certain long-term debt.
  *Income (loss) before income taxes was reduced by a net $3 million for
    Bottling Investments due to the Company’s proportionate share of unusual
    or infrequent items recorded by certain of our equity method investees.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)

Three Months Ended (continued)

During the three months ended June29, 2012, the results of our operating
segments were impacted by the following items:

  *Intersegment revenues were $173 million for Europe, $62 million for Latin
    America, $8 million for North America, $184 million for Pacific and $21
    million for Bottling Investments.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $48 million for North America, $16 million for Bottling Investments and
    $5 million for Corporate due to charges related to the Company's
    productivity and reinvestment program as well as other restructuring
    initiatives. Operating income (loss) and income (loss) before income taxes
    were increased by $2 million for Europe due to the refinement of
    previously established accruals related to the Company's 2008–2011
    productivity initiatives.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $6 million for North America due to costs associated with the Company
    detecting residues of carbendazim, a fungicide that is not registered in
    the U.S. for use on citrus products, in orange juice imported from Brazil
    for distribution in the U.S.
  *Income (loss) before income taxes was increased by $92 million for
    Corporate due to a gain the Company recognized as a result of Coca-Cola
    FEMSA issuing additional shares of its own stock during the period at a
    per share amount greater than the carrying value of the Company's per
    share investment.
  *Income (loss) before income taxes was reduced by $3 million for Eurasia
    and Africa, $6 million for Europe, $2 million for Latin America,
    $3million for Pacific and was increased by $3 million for Corporate due
    to changes in the structure of Beverage Partners Worldwide ("BPW"), our
    50/50 joint venture with Nestlé S.A. ("Nestlé") in the ready-to-drink tea
    category.
  *Income (loss) before income taxes was reduced by a net $1 million for
    Bottling Investments due to the Company’s proportionate share of unusual
    or infrequent items recorded by certain of our equity method investees.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)

Six Months Ended
                                                                                                             
                Net Operating Revenues                       Operating Income (Loss)                    Income (Loss) Before Income Taxes
                  June 28,         June 29,         % Fav. /     June 28,        June 29,        % Fav. /     June 28,        June 29,        % Fav. /
                2013           2012                      2013          2012                     2013          2012         
                                                     (Unfav.)                                     (Unfav.)                                     (Unfav.)
Eurasia &       $ 1,434        $ 1,343        7          $ 614         $ 562         9          $ 640         $ 573         12
Africa
Europe             2,645            2,691            (2)          1,519           1,592           (5)          1,563           1,624           (4)
Latin              2,443            2,331            5            1,489           1,430           4            1,494           1,430           4
America
North              10,600           10,718           (1)          1,072           1,207           (11)         1,074           1,228           (12)
America
Pacific            3,120            3,275            (5)          1,449           1,476           (2)          1,457           1,472           (1)
Bottling           4,276            4,600            (7)          164             125             31           463             481             (4)
Investments
Corporate          97               82               19           (656    )       (589    )       (11)         (822    )       (460    )       (79)
Eliminations    (831     )    (818     )    (2)        —           —           N/A        —           —           N/A
Consolidated    $ 23,784     $ 24,222     (2)        $ 5,651     $ 5,803     (3)        $ 5,869     $ 6,348     (8)

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

During the six months ended June28, 2013, the results of our operating
segments were impacted by the following items:

  *Intersegment revenues were $332 million for Europe, $147 million for Latin
    America, $9 million for North America, $303 million for Pacific and $40
    million for Bottling Investments.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $2 million for Eurasia and Africa, $6 million for Europe, $137 million
    for North America, $14 million for Pacific, $41 million for Bottling
    Investments and $56 million for Corporate due to charges related to the
    Company's productivity and reinvestment program as well as other
    restructuring initiatives. Operating income (loss) and income (loss)
    before income taxes were increased by $1 million for Pacific and $1
    million for Corporate due to the refinement of previously established
    accruals related to the Company's 2008–2011 productivity initiatives.
  *Operating income (loss) and income (loss) before income taxes were
    increased by $3 million for North America due to the refinement of
    previously established accruals related to the loss or damage of certain
    fixed assets as a result of Hurricane Sandy.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $7 million for Corporate due to transaction costs associated with
    certain of the Company's bottling partners.
  *Income (loss) before income taxes was reduced by $9 million for Bottling
    Investments and $140 million for Corporate due to the devaluation of the
    Venezuelan bolivar, including our proportionate share of the charge
    incurred by an equity method investee which has operations in Venezuela.
  *Income (loss) before income taxes was reduced by $144 million for
    Corporate due to charges related to the pending merger of four of the
    Company's Japanese bottling partners.
  *Income (loss) before income taxes was increased by $139 million for
    Corporate due to a gain the Company recognized as a result of Coca-Cola
    FEMSA issuing additional shares of its own stock during the period at a
    per share amount greater than the carrying value of the Company's per
    share investment.
  *Income (loss) before income taxes was reduced by a net $33 million for
    Bottling Investments due to the Company’s proportionate share of unusual
    or infrequent items recorded by certain of our equity method investees.
  *Income (loss) before income taxes was reduced by $23 million for Corporate
    due to a charge the Company recognized on the early extinguishment of
    certain long-term debt.
  *Income (loss) before income taxes was increased by $1 million for
    Corporate due to an adjustment to the Company's loss on the sale of a
    controlling ownership interest in our previously consolidated Philippine
    bottling operations to Coca-Cola FEMSA.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Operating Segments
(UNAUDITED)
(In millions)

Six Months Ended (continued)

During the six months ended June29, 2012, the results of our operating
segments were impacted by the following items:

  *Intersegment revenues were $323 million for Europe, $121 million for Latin
    America, $12 million for North America, $322 million for Pacific and $40
    million for Bottling Investments.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $109 million for North America, $31 million for Bottling Investments
    and $8 million for Corporate due to charges related to the Company's
    productivity and reinvestment program as well as other restructuring
    initiatives. Operating income (loss) and income (loss) before income taxes
    were increased by $3million for Europe due to the refinement of
    previously established accruals related to the Company's 2008–2011
    productivity initiatives.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $20 million for North America due to changes in the Company's
    ready-to-drink tea strategy as a result of our U.S. license agreement with
    Nestlé terminating at the end of 2012.
  *Operating income (loss) and income (loss) before income taxes were reduced
    by $12 million for North America due to costs associated with the Company
    detecting residues of carbendazim, a fungicide that is not registered in
    the U.S. for use on citrus products, in orange juice imported from Brazil
    for distribution in the U.S.
  *Income (loss) before income taxes was increased by $92 million for
    Corporate due to a gain the Company recognized as a result of Coca-Cola
    FEMSA issuing additional shares of its own stock during the period at a
    per share amount greater than the carrying value of the Company's per
    share investment.
  *Income (loss) before income taxes was increased by a net $43 million for
    Bottling Investments due to the Company’s proportionate share of unusual
    or infrequent items recorded by certain of our equity method investees.
  *Income (loss) before income taxes was reduced by $3 million for Eurasia
    and Africa, $6 million for Europe, $2 million for Latin America and $3
    million for Pacific due to changes in the structure of BPW, our 50/50
    joint venture with Nestlé in the ready-to-drink tea category.


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"). However, management believes that certain non-GAAP
financial measures provide users with additional meaningful financial
information that should be considered when assessing our ongoing performance.
Management also uses these non-GAAP financial measures in making financial,
operating and planning decisions and in evaluating the Company's performance.
Non-GAAP financial measures should be viewed in addition to, and not as an
alternative for, the Company’s reported results prepared in accordance with
GAAP. Our non-GAAP financial information does not represent a comprehensive
basis of accounting.

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 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 the
comparable period, but not both, or as relating to different and unrelated
underlying activities or events across comparable periods, are generally
considered "items impacting comparability". In addition, we provide the impact
that changes in foreign currency exchange rates had on our financial results
("currency neutral") as well as the impact of structural changes on our
financial results.

Asset Impairments and Restructuring

Restructuring

During the three and six months ended June28, 2013, the Company recorded
charges of $20million and $41 million, respectively. The Company also
recorded charges of $15million and $30 million during the three and six
months ended June29, 2012, respectively. These charges were related to the
integration of our German bottling and distribution operations as well as
other restructuring initiatives outside the scope of the Company's
productivity and reinvestment program.

Productivity and Reinvestment

During the three and six months ended June28, 2013, the Company recorded
charges of $113million and $215million, respectively. The Company also
recorded charges of $54 million and $118 million during the three and six
months ended June29, 2012, respectively. These charges were related to our
productivity and reinvestment program. This program is designed to further
enable our efforts to strengthen our brands and reinvest our resources to
drive long-term profitable growth. The first component of this program is a
global productivity initiative focused around four primary areas: global
supply chain optimization; global marketing and innovation effectiveness;
operating expense leverage and operational excellence; and data and
information technology systems standardization.

The second component of our productivity and reinvestment program involves a
new integration initiative in North America related to our acquisition of
Coca-Cola Enterprises' former North America business. The Company has
identified incremental synergies in North America, primarily in the area of
our North American product supply operations, which will enable us to better
serve our customers and consumers.

As a combined productivity and reinvestment program, the Company anticipates
generating annualized savings of $550million to $650million which will be
phased in over time. We expect to begin fully realizing the annual benefits of
these savings in 2015, the final year of the program.

Productivity Initiatives

During the three and six months ended June28, 2013, the Company reversed
charges of $2 million. During the three and six months ended June29, 2012,
the Company reversed charges of $2million and $3 million, respectively. These
reversals were related to previously established accruals associated with our
2008–2011 productivity initiatives. These initiatives were focused on
providing additional flexibility to invest for growth and impacted a number of
areas, including aggressively managing operating expenses supported by lean
techniques; redesigning key processes to drive standardization and
effectiveness; better leveraging our size and scale; and driving savings in
indirect costs.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)

Equity Investees

During the three and six months ended June28, 2013, the Company recorded net
charges of $3 million and $33 million, respectively. During the three and six
months ended June29, 2012, the Company recorded net charges of $1million and
net gains of $43million, respectively. These amounts represent the Company’s
proportionate share of unusual or infrequent items recorded by certain of our
equity method investees.

Transaction Gains/Losses

In 2012, four of the Company's Japanese bottling partners announced their
intent to merge as Coca-Cola East Japan Bottling Company, Ltd. ("CCEJ"), a
publicly traded entity, through a share exchange. The merger was approved by
the respective bottlers' shareowners in March 2013, and the transaction
received final regulatory approval in May 2013. The terms of the merger
agreement include the issuance of new shares of one of the publicly traded
bottlers in exchange for 100 percent of the outstanding shares of the
remaining three bottlers according to an agreed upon share exchange ratio.
Based on the closing price of the shares on June 28, 2013, the value of the
shares that the Company will receive in exchange for its investments in two of
the non-publicly traded bottlers was less than the carrying value of those
investments. As a result, we were required to write down the carrying value of
these investments to their implied fair value, resulting in a loss of $144
million during the three and six months ended June28, 2013. The merger was
completed effective July1, 2013.

During the three and six months ended June28, 2013, the Company also recorded
charges of $6 million due to transaction costs associated with certain of our
bottling partners and a gain of $139 million due to Coca-Cola FEMSA issuing
additional shares of its own stock during the period at a per share amount
greater than the carrying value of the Company's per share investment.

In addition to the items above, during the six months ended June28, 2013, the
Company recorded an additional charge of $1 million related to transaction
costs associated with certain of our bottling partners and a benefit of $1
million due to an adjustment to the Company's loss on the sale of a majority
interest in our previously consolidated Philippine bottling operations to
Coca-Cola FEMSA in January 2013.

During the three and six months ended June29, 2012, the Company recognized a
gain of $92 million due to Coca-Cola FEMSA issuing additional shares of its
own stock during the period at a per share amount greater than the carrying
value of the Company's per share investment.

Certain Tax Matters

During the three months ended June28, 2013, the Company recorded a net tax
benefit of $1million related to amounts required to be recorded for changes
to our uncertain tax positions, including interest and penalties.

During the three and six months ended June29, 2012, the Company recorded a
net tax benefit of $25 million and $33million, respectively. These benefits
were primarily related to the reversal of certain valuation allowances,
partially offset by amounts required to be recorded for changes to our
uncertain tax positions, including interest and penalties.

Other Items

Impact of Natural Disasters

On October 29, 2012, Hurricane Sandy caused widespread flooding and wind
damage across the mid-Atlantic region of the United States, primarily in New
York and New Jersey. During the six months ended June28, 2013, the Company
reversed charges of $3 million due to the refinement of previously established
accruals related to the loss or damage of certain fixed assets resulting from
the hurricane.

Economic (Nondesignated) Hedges

The Company uses derivatives as economic hedges to mitigate the price risk
associated with the purchase of materials used in the manufacturing process 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 into earnings.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)

Other Items (continued)

Economic (Nondesignated) Hedges (continued)

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.
We believe this adjustment provides meaningful information related to the
benefits of our economic hedging activities. During the three months ended
June28, 2013, and June29, 2012, the net impact of the Company's adjustment
related to our economic hedging activities described above resulted in an
increase to our non-GAAP operating income of $38million and $46million,
respectively. During the six months ended June28, 2013, and June29, 2012,
the net impact of the Company's adjustment related to our economic hedging
activities described above resulted in an increase of $120 million and a
decrease of $3 million, respectively, to our non-GAAP operating income.

Early Extinguishment of Long-Term Debt

During the three and six months ended June28, 2013, the Company recorded a
charge of $23 million due to the early extinguishment of certain long-term
debt.

Hyperinflationary Economies

During the six months ended June28, 2013, the Company recorded a charge of
$149 million related to the devaluation of the Venezuelan bolivar, including
our proportionate share of the charge incurred by an equity method investee
which has operations in Venezuela.

Beverage Partners Worldwide and License Agreement with Nestlé S.A.

During the three and six months ended June29, 2012, the Company recorded
charges of $11 million and $14 million, respectively, due to changes in the
structure of Beverage Partners Worldwide ("BPW"), our 50/50 joint venture with
Nestlé S.A. ("Nestlé") in the ready-to-drink tea category. In addition, during
the six months ended June29, 2012, the Company recorded charges of
$20million due to changes in our ready-to-drink tea strategy as a result of
our U.S. license agreement with Nestlé terminating at the end of 2012.

Brazilian Orange Juice

In December 2011, the Company learned that orange juice being imported from
Brazil contained residues of carbendazim, a fungicide that is not registered
in the U.S. for use on citrus products. As a result, the Company began
purchasing additional supplies of Florida orange juice at a higher cost than
Brazilian orange juice. During the three and six months ended June29, 2012,
the Company incurred charges of $6million and $12 million, respectively,
related to these events, including the increased raw material costs.

Currency Neutral

Management evaluates the operating performance of our Company and our
international subsidiaries on a currency neutral basis. We determine our
currency neutral operating results 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 the Company'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

Structural changes generally refer to acquisitions or dispositions of
bottling, distribution or canning operations and consolidation or
deconsolidation of bottling and distribution entities for accounting purposes.
In 2012, the Company acquired bottling operations in Vietnam, Cambodia and
Guatemala. In 2013, the Company acquired bottling operations in Myanmar and
sold a majority interest in our previously consolidated Philippine bottling
operations. Accordingly, these acquisition and disposal activities have been
included as structural items in our analysis of the impact of these changes on
certain line items in our condensed consolidated statements of income.

                                                                                                                                       
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
                                                                                                              
                              Three Months Ended June 28, 2013                                                                         
                                                                                        Selling,
                                Net            Cost of                                  general            Other
                                                             Gross         Gross                                         Operating     Operating
                               operating    goods                              and              operating              
                                                             profit        margin                                        income        margin
                                revenues       sold                                     administrative     charges

                                                                                        expenses
Reported (GAAP)                $ 12,749     $ 4,989     $ 7,760     60.9 %     $   4,385        $  132      $ 3,243      25.4   %
Items Impacting
Comparability:
Asset                           —              —             —                          —                  (20     )     20
Impairments/Restructuring
Productivity &                  —              —             —                          —                  (113    )     113
Reinvestment
Productivity Initiatives        —              —             —                          —                  2             (2      )
Equity Investees                —              —             —                          —                  —             —
Transaction Gains/Losses        —              —             —                          (5          )      (1      )     6
Certain Tax Matters             —              —             —                          —                  —             —
Other Items                     (1       )     (38     )     37                        (1          )      —            38      
After Considering Items        $ 12,748    $ 4,951    $ 7,797    61.2 %    $   4,379       $  —       $ 3,418    26.8   %
(Non-GAAP)
                                                                                                                
                              Three Months Ended June 29, 2012                                                                         
                                                                                        Selling,
                                Net            Cost of                                  general            Other
                                                             Gross         Gross                                         Operating     Operating
                               operating    goods                              and              operating              
                                                             profit        margin                                        income        margin
                                revenues       sold                                     administrative     charges

                                                                                        expenses
Reported (GAAP)                 $ 13,085       $ 5,224       $ 7,861       60.1 %       $   4,497          $  70         $ 3,294       25.2   %
Items Impacting
Comparability:
Asset                           —              —             —                          —                  (15     )     15
Impairments/Restructuring
Productivity &                  —              —             —                          —                  (54     )     54
Reinvestment
Productivity Initiatives        —              —             —                          —                  2             (2      )
Equity Investees                —              —             —                          —                  —             —
Transaction Gains/Losses        —              —             —                          —                  —             —
Certain Tax Matters             —              —             —                          —                  —             —
Other Items                     (1       )     (32     )     31                        (18         )      (3      )     52      
After Considering Items        $ 13,084    $ 5,192    $ 7,892    60.3 %    $   4,479       $  —       $ 3,413    26.1   %
(Non-GAAP)
                                                                                                                   
                                                                                        Selling,
                                Net            Cost of                                  general            Other
                                                                                                                         Operating
Currency Neutral:              operating     goods        Gross                    and               operating                 
                                                             profit                                                      income
                                revenues       sold                                     administrative     charges

                                                                                        expenses
% Change — Reported             (3)            (5)           (1)                        (3)                90            (2)
(GAAP)
% Currency Impact               (2)            (2)           (2)                        (1)                N/A           (4)
% Change — Currency             (1)            (3)           1                          (1)                N/A           2
Neutral Reported
% Structural Impact             (2)            (3)           (1)                        (2)                N/A           (1)
% Change — Currency
Neutral Reported and           2            —           2                        1                N/A         2          
Adjusted for Structural
Items
                                                                                                                   
% Change — After
Considering Items               (3)            (5)           (1)                        (2)                N/A           —

(Non-GAAP)
% Currency Impact After
Considering Items               (2)            (2)           (2)                        (1)                N/A           (3)
(Non-GAAP)
% Change — Currency
Neutral After Considering       (1)            (3)           1                          (1)                N/A           4
Items (Non-GAAP)
% Structural Impact After
Considering Items               (2)            (3)           (1)                        (2)                N/A           (1)
(Non-GAAP)
% Change — Currency
Neutral After Considering
Items and Adjusted for         2            —           2                        1                N/A         4          
Structural Items
(Non-GAAP)
Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.
                                                                                                                                       


THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
                                                                                                                    
                              Three Months Ended June 28, 2013
                                                                                                                               Net income
                                                                                                                                                Diluted
                                             Equity      Other      Income                                  Net income         attributable
                                                                                                                               to               net
                                Interest     income      income     before        Income      Effective     attributable
                                                                                               to               shareowners    income
                                expense      (loss)      (loss)     income        taxes       tax rate                         of
                                             —           —                                                  noncontrolling                      per
                                                                    taxes                                                      The
                                             net         net                                                interests          Coca-Cola        share^1

                                                                                                                               Company
Reported (GAAP)                $  122     $ 246     $ 29     $ 3,525     $ 831     23.5  %     $    18          $  2,676       $ 0.59
Items Impacting
Comparability:
Asset                           —            —           —          20            —                         —                  20               —
Impairments/Restructuring
Productivity &                  —            —           —          113           38                        —                  75               0.02
Reinvestment
Productivity Initiatives        —            —           —          (2      )     (1    )                   —                  (1        )      —
Equity Investees                —            3           —          3             —                         —                  3                —
Transaction Gains/Losses        —            —           5          11            (48   )                   —                  59               0.01
Certain Tax Matters             —            —           —          —             1                         —                  (1        )      —
Other Items                     (23    )     —          —         61           23                       —                 38              0.01   
After Considering Items        $  99     $ 249    $ 34    $ 3,731    $ 844    22.6  %    $    18         $  2,869      $ 0.63 
(Non-GAAP)
                                                                                                                      
                              Three Months Ended June 29, 2012
                                                                                                                               Net income
                                                                                                                                                Diluted
                                             Equity      Other      Income                                  Net income         attributable
                                                                                              Effective                        to               net
                                Interest     income      income     before        Income                    attributable
                                                                                   tax rate    to               shareowners    income
                                expense      (loss)      (loss)     income        taxes                                        of
                                             —           —                                                 noncontrolling                      per
                                                                    taxes                                                      The
                                             net         net                                                interests          Coca-Cola        share^2

                                                                                                                               Company
Reported (GAAP)                 $  112       $ 245       $ 84       $ 3,623       $ 823       22.7  %       $    12            $  2,788         $ 0.61
Items Impacting
Comparability:
Asset                           —            —           —          15            —                         —                  15               —
Impairments/Restructuring
Productivity &                  —            —           —          54            20                        —                  34               0.01
Reinvestment
Productivity Initiatives        —            —           —          (2      )     (1    )                   —                  (1        )      —
Equity Investees                —            1           —          1             1                         —                  —                —
Transaction Gains/Losses        —            —           (92  )     (92     )     (33   )                   —                  (59       )      (0.01  )
Certain Tax Matters             —            —           —          —             25                        —                  (25       )      (0.01  )
Other Items                     —           11         —         63           23                       1                 39              0.01   
After Considering Items        $  112    $ 257    $ (8 )   $ 3,662    $ 858    23.4  %    $    13         $  2,791      $ 0.61 
(Non-GAAP)
                                                                                                                         
                                                                                                                               Net income

                                             Equity      Other      Income                                  Net income         attributable     Diluted
                                                                                                                               to
                                Interest     income      income     before        Income                    attributable                        net
                                                                                                to               shareowners   
                                expense      (loss)      (loss)     income        taxes                                        of               income
                                             —           —                                                  noncontrolling
                                                                    taxes                                                      The              per
                                             net         net                                                interests          Coca-Cola        share

                                                                                                                               Company
% Change — Reported             9            1           (67)       (3)           1                         56                 (4)              (3)
(GAAP)
% Change — After
Considering Items              (12)       (3)       N/A      2           (1)                    42               3              4

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

^1 4,527 million average shares outstanding — diluted
^2 4,592 million average shares outstanding — diluted

                                                                                                                                        
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
                                                                                                               
                              Six Months Ended June 28, 2013                                                                            
                                                                                         Selling,
                                Net            Cost of                                   general            Other
                                                             Gross          Gross                                         Operating     Operating
                               operating    goods                               and              operating              
                                                             profit         margin                                        income        margin
                                revenues       sold                                      administrative     charges

                                                                                         expenses
Reported (GAAP)                $ 23,784     $ 9,313     $ 14,471     60.8 %     $   8,567        $  253      $ 5,651      23.8   %
Items Impacting
Comparability:
Asset                           —              —             —                           —                  (41     )     41
Impairments/Restructuring
Productivity &                  —              —             —                           —                  (215    )     215
Reinvestment
Productivity Initiatives        —              —             —                           —                  2             (2      )
Equity Investees                —              —             —                           —                  —             —
Transaction Gains/Losses        —              —             —                           (5          )      (2      )     7
Certain Tax Matters             —              —             —                           —                  —             —
Other Items                     3              (113    )     116                         (4          )      3             117
After Considering Items        $ 23,787    $ 9,200    $ 14,587    61.3 %    $   8,558       $  —       $ 6,029    25.3   %
(Non-GAAP)
                                                                                                                 
                              Six Months Ended June 29, 2012                                                                            
                                                                                         Selling,
                                Net            Cost of                                   general            Other
                                                             Gross          Gross                                         Operating     Operating
                               operating    goods                               and              operating              
                                                             profit         margin                                        income        margin
                                revenues       sold                                      administrative     charges

                                                                                         expenses
Reported (GAAP)                 $ 24,222       $ 9,572       $ 14,650       60.5 %       $   8,678          $  169        $ 5,803       24.0   %
Items Impacting
Comparability:
Asset                           —              —             —                           —                  (30     )     30
Impairments/Restructuring
Productivity &                  —              —             —                           —                  (118    )     118
Reinvestment
Productivity Initiatives        —              —             —                           —                  3             (3      )
Equity Investees                —              —             —                           —                  —             —
Transaction Gains/Losses        —              —             —                           —                  —             —
Certain Tax Matters             —              —             —                           —                  —             —
Other Items                     1              (2      )     3                           (2          )      (24     )     29
After Considering Items        $ 24,223    $ 9,570    $ 14,653    60.5 %    $   8,676       $  —       $ 5,977    24.7   %
(Non-GAAP)
                                                                                                           
                                                                                         Selling,
                                Net            Cost of                                   general            Other
                                                             Gross                                                        Operating
Currency Neutral:              operating    goods                                  and              operating  
                                                             profit                                                       income
                                revenues       sold                                      administrative     charges

                                                                                         expenses
% Change — Reported             (2)            (3)           (1)                         (1)                50            (3)
(GAAP)
% Currency Impact               (2)            (2)           (2)                         (1)                N/A           (3)
% Change — Currency             —              (1)           1                           —                  N/A           1
Neutral Reported
% Structural Impact             (2)            (3)           (1)                         (1)                N/A           —
% Change - Currency
Neutral Reported and           2            1           2                          1                N/A         1
Adjusted for Structural
Items
                                                                                                           
% Change — After
Considering Items               (2)            (4)           —                           (1)                N/A           1

(Non-GAAP)
% Currency Impact After
Considering Items               (2)            (2)           (2)                         (1)                N/A           (3)
(Non-GAAP)
% Change — Currency
Neutral After Considering       —              (2)           2                           —                  N/A           4
Items (Non-GAAP)
% Structural Impact After
Considering Items               (2)            (3)           (1)                         (1)                N/A           (1)
(Non-GAAP)
% Change — Currency
Neutral After Considering
Items and Adjusted for         2            —           3                          1                N/A         5
Structural Items
(Non-GAAP)
Note: Certain columns may not add due to rounding. Certain growth rates may not recalculate using the rounded dollar amounts provided.


THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions except per share data)
                                                                                                                        
                              Six Months Ended June 28, 2013
                                                                                                                                   Net income
                                                                                                                                                    Diluted
                                             Equity      Other        Income                                    Net income         attributable
                                                                                                                                   to               net
                                Interest     income      income       before        Income        Effective     attributable
                                                                                                   to               shareowners    income
                                expense      (loss)      (loss) —     income        taxes         tax rate                         of
                                             —                                                                  noncontrolling                      per
                                                         net          taxes                                                        The
                                             net                                                                interests          Coca-Cola        share^1

                                                                                                                                   Company
Reported (GAAP)                $  224     $ 333     $ (136 )   $ 5,869     $ 1,406     23.9  %     $    36          $  4,427       $ 0.98
Items Impacting
Comparability:
Asset                           —            —           —            41            —                           —                  41               0.01
Impairments/Restructuring
Productivity &                  —            —           —            215           78                          —                  137              0.03
Reinvestment
Productivity Initiatives        —            —           —            (2      )     (1      )                   —                  (1        )      —
Equity Investees                —            33          —            33            3                           —                  30               0.01
Transaction Gains/Losses        —            —           4            11            (52     )                   —                  63               0.01
Certain Tax Matters             —            —           —            —             —                           —                  —                —
Other Items                     (23    )     9          140         289          51                         —                 238             0.05   
After Considering Items        $  201    $ 375    $ 8       $ 6,456    $ 1,485    23.0  %    $    36         $  4,935      $ 1.09 
(Non-GAAP)
                                                                                                                          
                              Six Months Ended June 29, 2012
                                                                                                                                   Net income
                                                                                                                                                    Diluted
                                             Equity      Other        Income                                    Net income         attributable
                                                                                                                                   to               net
                                Interest     income      income       before        Income        Effective     attributable
                                                                                                   to               shareowners    income
                                expense      (loss)      (loss) —     income        taxes         tax rate                         of
                                             —                                                                  noncontrolling                      per
                                                         net          taxes                                                        The
                                             net                                                                interests          Coca-Cola        share^2

                                                                                                                                   Company
Reported (GAAP)                 $  200       $ 385       $ 133        $ 6,348       $ 1,481       23.3  %       $    25            $  4,842         $ 1.05
Items Impacting
Comparability:
Asset                           —            —           —            30            —                           —                  30               0.01
Impairments/Restructuring
Productivity &                  —            —           —            118           44                          —                  74               0.02
Reinvestment
Productivity Initiatives        —            —           —            (3      )     (1      )                   —                  (2        )      —
Equity Investees                —            (43   )     —            (43     )     (3      )                   —                  (40       )      (0.01  )
Transaction Gains/Losses        —            —           (92    )     (92     )     (33     )                   —                  (59       )      (0.01  )
Certain Tax Matters             —            —           —            —             33                          —                  (33       )      (0.01  )
Other Items                     —           14         —           43           16                         —                 27              0.01   
After Considering Items        $  200    $ 356    $ 41      $ 6,401    $ 1,537    24.0  %    $    25         $  4,839      $ 1.05 
(Non-GAAP)
                                                                                                                             
                                                                                                                                   Net income

                                             Equity      Other        Income                                    Net income         attributable     Diluted
                                                                                                                                   to
                                Interest     income      income       before        Income                      attributable                        net
                                                                                                    to               shareowners   
                                expense      (loss)      (loss) —     income        taxes                                          of               income
                                             —                                                                  noncontrolling
                                                         net          taxes                                                        The              per
                                             net                                                                interests          Coca-Cola        share

                                                                                                                                   Company
% Change — Reported             12           (13)        N/A          (8)           (5)                         43                 (9)              (7)
(GAAP)
% Change — After
Considering Items              —          5         N/A        1           (3)                      42               2              4

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

^1 4,528 million average shares outstanding — diluted
^2 4,596 million average shares outstanding — diluted

<td *Story too large*

THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
                                                                                                             
Operating Income (Loss) by Segment:      
                                                                                                  
                              Three Months Ended June 28, 2013
                                Eurasia                 Latin       North                   Bottling
                               &         Europe                        Pacific                 Corporate   Consolidated
                                                        America     America                 Investments
                                Africa
Reported (GAAP)                $ 332       $ 836       $ 726       $ 731       $ 847       $   125         $  (354 )     $  3,243
Items Impacting
Comparability:
Asset                           —           —           —           —           —           20              —             20
Impairments/Restructuring
Productivity &                  —           6           —           55          6           —               46            113
Reinvestment
Productivity Initiatives        —           —           —           —           (1    )     —               (1      )     (2        )
Transaction Gains/Losses        —           —           —           —           —           —               6             6
Other Items                     —          —          —          41         —          (1       )      (2      )     38        
After Considering Items        $ 332    $ 842    $ 726    $ 827    $ 852 
(Non-GAAP)

[TRUNCATED]
 
Press spacebar to pause and continue. Press esc to stop.