Coca Cola : Reconciliation of Q2 2022 Non-GAAP Financial Measures for Earnings Conference Call

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Organic Revenues:

		Less: Adjustments to Reported Net Revenues
			Impact of
	Reported		Acquisitions,
	Net		Divestitures	Impact of	Organic
	Revenues	Currency	and Structural	Accounting	Revenues
Percent Change	(GAAP)	Impact	Changes, Net	Changes1	(Non-GAAP)
2017 Q3	(15)	0	(18)	0	4
2017 Q4	(12)	0	(18)	0	6
2018 Q1	(9)	3	(20)	3	5
2018 Q2	(3)	1	(11)	2	5
2018 Q3	(3)	(4)	(7)	2	6
2018 Q4	(6)	(5)	(7)	2	4
2019 Q1	5	(7)	5	0	6
2019 Q2	6	(6)	6	0	6
2019 Q3	8	(3)	6	0	5
2019 Q4	16	(2)	12	0	7
2020 Q1	(1)	(2)	1	0	0
2020 Q2	(28)	(3)	0	0	(26)
2020 Q3	(9)	(3)	0	0	(6)
2020 Q4	(5)	(2)	0	0	(3)
2021 Q1	5	(1)	0	0	6
2021 Q2	42	5	0	0	37
2021 Q3	16	2	0	0	14
2021 Q4	10	(1)	1	0	9
2022 Q1	16	(4)	3	0	18
2022 Q2	12	(6)	2	0	16
Average Percent Change	2				6

Note: Certain rows may not add due to rounding.

1 Represents the impact of adoption of revenue recognition accounting standard (ASC 606).

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THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Gross Margin:

	Three Months Ended	Three Months Ended	Basis Point
	July 1, 2022	July 2, 2021	Growth (Decline)
Reported Gross Margin (GAAP)	57.34%	62.61%	(527)
Items Impacting Comparability (Non-GAAP)	(1.65%)	1.17%
Comparable Gross Margin (Non-GAAP)	58.99%	61.44%	(245)
Comparable Currency Impact (Non-GAAP)	(0.39%)	0.00%
Comparable Currency Neutral Gross Margin (Non-GAAP)	59.38%	61.44%	(206)
Impact of Acquisitions, Divestitures and Structural Changes on
Comparable Currency Neutral Gross Margin (Non-GAAP)	(1.15%)	0.00%
Underlying Gross Margin (Non-GAAP)	60.53%	61.44%	(91)

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THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)
(In millions except net debt leverage)
Gross Debt and Net Debt:
			As of
			July 1, 2022
Cash and cash equivalents		$	8,976
Short-term investments			776
Marketable securities			1,867
Total cash, cash equivalents, short-term investments and marketable securities (Non-GAAP)		$	11,619
Loans and notes payable		$	4,358
Current maturities of long-term debt			788
Long-term debt			36,755
Gross debt (Non-GAAP)		$	41,901
Net debt (Non-GAAP)1		$	30,282

1 Net debt is calculated by subtracting total cash, cash equivalents, short-term investments and marketable securities from gross debt.

EBITDA:

			July 1, 2022
			Trailing Twelve Months
Income before income taxes		$	11,786
Less income items:
Interest income			317
Other income (loss) - net			497
Add expense items:
Interest expense			755
Depreciation and amortization			1,349
Earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP)		$	13,076

Comparable EBITDA:

Comparable income before income taxes (Non-GAAP)Less income items:

Interest income

Comparable other income (loss) - net (Non-GAAP)Add expense items:

Comparable interest expense (Non-GAAP)

Depreciation and amortization

Comparable EBITDA (Non-GAAP)

Net Debt Leverage:

Net debt (Non-GAAP)

Comparable EBITDA (Non-GAAP)

Net debt leverage (Non-GAAP)

	$	13,131
		317
		289
		779
		1,349
	$	14,653
		As of
		July 1, 2022
	$	30,282
	$	14,653
		2.1x

• 3

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

			(UNAUDITED)
			(In millions)
Gross Debt and Net Debt:
			As of
			July 1, 2022
Cash and cash equivalents		$	8,976
Short-term investments			776
Marketable securities			1,867
Total cash, cash equivalents, short-term investments and marketable
securities (Non-GAAP)		$	11,619
Loans and notes payable		$	4,358
Current maturities of long-term debt			788
Long-term debt			36,755
Gross debt (Non-GAAP)		$	41,901
Net debt (Non-GAAP)1		$	30,282

1 Net debt is calculated by subtracting total cash, cash equivalents, short-term investments and marketable securities from gross debt.

EBITDA:

Income before income taxes

Less income items:

Interest income

Other income (loss) - net

Add expense items:

Interest expense

Depreciation and amortization

Earnings before interest, taxes, depreciation and amortization (EBITDA) (Non-GAAP)

Comparable EBITDA:

Comparable income before income taxes (Non-GAAP)Less income items:

Interest income

Comparable other income (loss) - net (Non-GAAP)Add expense items:

Comparable interest expense (Non-GAAP)

Depreciation and amortization

Comparable EBITDA (Non-GAAP)

		July 1, 2022				Six Months Ended		Three Months Ended		Three Months Ended
	Trailing Twelve Months				July 1, 2022			December 31, 2021			October 1, 2021
	$	11,786		$	5,742			$	2,960		$	3,084
		317				178				71				68
		497				(456)			1,080				(127)
		755				380				165				210
		1,349				646				3412			3623
	$	13,076			$	7,046			$	2,315		$	3,715
	$	13,131		$	7,287			$	2,420		$	3,424
		317				178				71				68
		289				50				118				121
		779				392				171				216
		1,349				646				3412			3623
	$	14,653			$	8,097			$	2,743		$	3,813

1. Calculated by subtracting depreciation and amortization of $1,111 million during the nine months ended October 1, 2021 from depreciation and amortization of $1,452 million during the year ended December 31, 2021.
2. Calculated by subtracting depreciation and amortization of $749 million during the six months ended July 2, 2021 from depreciation and amortization of $1,111 million during the nine months ended October 1, 2021.

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