THE COCA-COLA COMPANY 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 | |
December 31, 2022 | December 31, 2021 | Growth (Decline) | |
Reported Gross Margin (GAAP) | 55.43% | 56.81% | (138) |
Items Impacting Comparability (Non-GAAP) | (1.03%) | (0.51%) | |
Comparable Gross Margin (Non-GAAP) | 56.46% | 57.32% | (86) |
Comparable Currency Impact (Non-GAAP) | (0.65%) | 0.00% | |
Comparable Currency Neutral Gross Margin (Non-GAAP) | 57.11% | 57.32% | (21) |
Impact of Acquisitions, Divestitures and Structural Changes on | |||
Comparable Currency Neutral Gross Margin (Non-GAAP) | (0.24%) | (0.04%) | |
Underlying Gross Margin (Non-GAAP) | 57.35% | 57.36% | (1) |
The earnings conference call on February 14, 2023 included a reference to full year 2023 adjusted free cash flow conversion ratio, a non- GAAP financial measure, which is calculated by dividing adjusted free cash flow (non-GAAP) by adjusted net income attributable to shareowners (non-GAAP). The company is not able to reconcile full year 2023 adjusted free cash flow conversion ratio (non-GAAP) to the ratio of full year 2023 net cash provided by operating activities to full year 2023 net income attributable to shareowners without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the exact timing and amount of items impacting comparability throughout 2023. The unavailable information could have a significant impact on the company's full year 2023 reported financial results.
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(In millions)
Free Cash Flow and Adjusted Free Cash Flow Conversion Ratio:
Net Cash Provided by Operating Activities
Purchases of Property, Plant and Equipment
Free Cash Flow (Non-GAAP)
Plus: Cash Payments for Pension Plan Contributions
Adjusted Free Cash Flow (Non-GAAP)
Net Income Attributable to Shareowners of The Coca-Cola Company
Noncash Items Impacting Comparability:
Asset Impairments
Equity Investees
Transaction Gains/Losses
Other Items
Certain Tax Matters
Adjusted Net Income Attributable to Shareowners of The Coca-Cola Company (Non- GAAP)
Cash Flow Conversion Ratio 1
Adjusted Free Cash Flow Conversion Ratio (Non-GAAP)2
Three-Year Average Adjusted Free Cash Flow Conversion Ratio (Non-GAAP)
Year Ended | Year Ended | Year Ended | |||||||||
December 31, 2022 | December 31, 2021 | December 31, 2020 | |||||||||
$ | 11,018 | $ | 12,625 | $ | 9,844 | ||||||
(1,484) | (1,367) | (1,177) | |||||||||
9,534 | 11,258 | 8,667 | |||||||||
- | - | - | |||||||||
$ | 9,534 | $ | 11,258 | $ | 8,667 | ||||||
$ | 9,542 | $ | 9,771 | $ | 7,747 | ||||||
153 | 62 | 493 | |||||||||
33 | 23 | 216 | |||||||||
589 | (1,109) | (933) | |||||||||
526 | 555 | 291 | |||||||||
(128) | 410 | 207 | |||||||||
$ | 10,715 | $ | 9,712 | $ | 8,021 | ||||||
115% | 129% | 127% | |||||||||
89% | 116% | 108% | |||||||||
104% |
- Cash flow conversion ratio is calculated by dividing net cash provided by operating activities by net income attributable to shareowners of The Coca-Cola Company.
- Adjusted free cash flow conversion ratio is calculated by dividing adjusted free cash flow by adjusted net income attributable to shareowners of The Coca-Cola Company.
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:
Cash and cash equivalents
Short-term investments
Marketable securities
Total cash, cash equivalents, short-term investments and marketable securities (Non-GAAP)
Loans and notes payable
Current maturities of long-term debt
Long-term debt
Gross debt (Non-GAAP)
Net debt (Non-GAAP)1
As of
December 31, 2022
$9,519 1,043 1,069
$11,631
$2,373 399 36,377
$39,149
$27,518
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) Items impacting comparability
Comparable EBITDA (Non-GAAP)
Year Ended
December 31, 2022
$11,686
449
(262)
882
1,260
$13,641 1,470
$15,111
Net Debt Leverage:
Net debt (Non-GAAP) Comparable EBITDA (Non-GAAP) Net debt leverage (Non-GAAP)
As of and Year Ended
December 31, 2022
$27,518 $15,111 1.8
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Disclaimer
The Coca-Cola Company published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2023 13:31:03 UTC.
