Coca-Cola Co. (KO) | Equity Method Investments

Selected Financial Data

Coca-Cola Co.'s selected financial data

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Equity income (loss), net	819	690	1,025	781	(874)
Equity method investments	9,216	7,233	6,954	6,217	5,316

ROA (equity method investments only)¹	8.89%	9.54%	14.74%	12.56%	-16.44%

Source: Based on data from Coca-Cola Co. Annual Reports

2012 Calculations

¹ ROA (equity method investments only) = 100 × Equity income (loss), net ÷ Equity method investments
= 100 × 819 ÷ 9,216 = 8.89%

Item	Description	The company
Equity income (loss), net	This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.	Coca-Cola Co.'s equity income (loss), net declined from 2010 to 2011 but then slightly increased from 2011 to 2012.
Equity method investments	This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment losses recognized.	Coca-Cola Co.'s equity method investments increased from 2010 to 2011 and from 2011 to 2012.
ROA (equity method investments only)	A profitability ratio calculated as equity income (loss), net divided by equity method investments.	Coca-Cola Co.'s ROA of equity method investments deteriorated from 2010 to 2011 and from 2011 to 2012.

Summarized Financial Information

Summarized financial information for Coca-Cola Co.'s affiliates, subsidiaries, associates, and joint ventures

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current assets	16,054	13,960	12,223	16,018	15,505
Noncurrent assets	32,687	27,152	26,524	36,643	34,544
Total assets	48,741	41,112	38,747	52,661	50,049
Current liabilities	12,004	10,545	9,039	13,166	14,800
Noncurrent liabilities	12,272	11,646	11,175	21,891	20,464
Total liabilities	24,276	22,191	20,214	35,057	35,264
Equity attributable to shareowners of investees	23,827	18,392	18,046	17,091	14,426
Equity attributable to noncontrolling interests	638	529	487	513	359
Total equity	24,465	18,921	18,533	17,604	14,785
Total liabilities and equity	48,741	41,112	38,747	52,661	50,049
Net operating revenues	47,087	42,472	55,127	55,937	56,289
Cost of goods sold	(28,821)	(26,271)	(33,081)	(33,538)	(33,737)
Gross profit	18,266	16,201	22,046	22,399	22,552
Operating income	4,606	4,181	5,503	5,184	(2,612)
Consolidated net income (loss)	2,993	2,237	3,336	3,000	(2,444)
Net income attributable to noncontrolling interests	(89)	(99)	(89)	(78)	(53)
Net income (loss) attributable to common shareowners	2,904	2,138	3,247	2,922	(2,497)

Source: Based on data from Coca-Cola Co. Annual Reports

Item	Description	The company
Equity attributable to shareowners of investees	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets, liabilities, and results of operations of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may include total equity or capital (as applicable).	Equity attributable to shareowners of investees of Coca-Cola Co.'s affiliates, subsidiaries, associates, and joint ventures increased from 2010 to 2011 and from 2011 to 2012.
Net income (loss) attributable to common shareowners	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may, at a minimum, include net income or loss.	Net income (loss) attributable to common shareowners of Coca-Cola Co.'s affiliates, subsidiaries, associates, and joint ventures declined from 2010 to 2011 but then increased from 2011 to 2012 not reaching 2010 level.

Adjustments to Financial Data: Proportionate Consolidation

Recognition of Coca-Cola Co.'s proportionate share of affiliates, subsidiaries, associates, and joint ventures assets and liabilities instead of net equity.

Coca-Cola Co., adjustments to financial data

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Weighted average percentage interest in affiliates	38.68%	39.33%	38.53%	36.38%	36.85%
Adjustment to Current Assets
Current assets (as reported)	30,328	25,497	21,579	17,551	12,176
Add: Current assets of affiliates (adjustment)	6,209	5,490	4,710	5,827	5,714
Current assets (adjusted)	36,537	30,987	26,289	23,378	17,890
Adjustment to Total Assets
Total assets (as reported)	86,174	79,974	72,921	48,671	40,519
Less: Equity method investments (adjustment)	9,216	7,233	6,954	6,217	5,316
Add: Total assets of affiliates (adjustment)	18,852	16,168	14,931	19,156	18,443
Total assets (adjusted)	95,810	88,909	80,898	61,610	53,646
Adjustment to Current Liabilities
Current liabilities (as reported)	27,821	24,283	18,508	13,721	12,988
Add: Current liabilities of affiliates (adjustment)	4,643	4,147	3,483	4,789	5,454
Current liabilities (adjusted)	32,464	28,430	21,991	18,510	18,442
Adjustment to Total Liabilities
Total liabilities (as reported)	53,006	48,053	41,604	23,325	19,657
Add: Total liabilities of affiliates (adjustment)	9,390	8,727	7,789	12,752	12,995
Total liabilities (adjusted)	62,396	56,780	49,393	36,077	32,652
Adjustment to Equity Attributable To Noncontrolling Interests
Equity attributable to noncontrolling interests (as reported)	378	286	314	547	390
Add: Equity attributable to noncontrolling interests of affiliates (adjustment)	247	208	188	187	132
Equity attributable to noncontrolling interests (adjusted)	625	494	502	734	522
Adjustment to Net Operating Revenues
Net operating revenues (as reported)	48,017	46,542	35,119	30,990	31,944
Add: Net operating revenues of affiliates (adjustment)	18,213	16,703	21,243	20,348	20,743
Net operating revenues (adjusted)	66,230	63,245	56,362	51,338	52,687

Adjusted Ratios: Proportionate Consolidation (Summary)

Coca-Cola Co., adjusted ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current Ratio
Reported current ratio	1.09	1.05	1.17	1.28	0.94
Adjusted current ratio	1.13	1.09	1.20	1.26	0.97
Net Profit Margin
Reported net profit margin	18.78%	18.42%	33.63%	22.02%	18.18%
Adjusted net profit margin	13.62%	13.55%	20.95%	13.29%	11.02%
Total Asset Turnover
Reported total asset turnover	0.56	0.58	0.48	0.64	0.79
Adjusted total asset turnover	0.69	0.71	0.70	0.83	0.98
Financial Leverage
Reported financial leverage	2.63	2.53	2.35	1.96	1.98
Adjusted financial leverage	2.92	2.81	2.61	2.48	2.62
Return on Assets (ROA)
Reported ROA	10.47%	10.72%	16.19%	14.02%	14.33%
Adjusted ROA	9.41%	9.64%	14.60%	11.08%	10.82%

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Coca-Cola Co.'s adjusted current ratio deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Coca-Cola Co.'s adjusted net profit margin deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Coca-Cola Co.'s adjusted total asset turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Coca-Cola Co.'s adjusted financial leverage increased from 2010 to 2011 and from 2011 to 2012.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Coca-Cola Co.'s adjusted ROA deteriorated from 2010 to 2011 and from 2011 to 2012.

Adjusted Current Ratio

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Current assets (USD $ in millions)	30,328	25,497	21,579	17,551	12,176
Current liabilities (USD $ in millions)	27,821	24,283	18,508	13,721	12,988

Current ratio¹	1.09	1.05	1.17	1.28	0.94
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted current assets (USD $ in millions)	36,537	30,987	26,289	23,378	17,890
Adjusted current liabilities (USD $ in millions)	32,464	28,430	21,991	18,510	18,442

Adjusted current ratio²	1.13	1.09	1.20	1.26	0.97

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 30,328 ÷ 27,821 = 1.09

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 36,537 ÷ 32,464 = 1.13

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Coca-Cola Co.'s adjusted current ratio deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.

Adjusted Net Profit Margin

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net income attributable to shareowners of The Coca-Cola Company (USD $ in millions)	9,019	8,572	11,809	6,824	5,807
Net operating revenues (USD $ in millions)	48,017	46,542	35,119	30,990	31,944

Net profit margin¹	18.78%	18.42%	33.63%	22.02%	18.18%
Adjusted: from Equity Method to Proportionate Consolidation
Net income attributable to shareowners of The Coca-Cola Company (USD $ in millions)	9,019	8,572	11,809	6,824	5,807
Adjusted net operating revenues (USD $ in millions)	66,230	63,245	56,362	51,338	52,687

Adjusted net profit margin²	13.62%	13.55%	20.95%	13.29%	11.02%

2012 Calculations

¹ Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 9,019 ÷ 48,017 = 18.78%

² Adjusted net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted net operating revenues
= 100 × 9,019 ÷ 66,230 = 13.62%

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Coca-Cola Co.'s adjusted net profit margin deteriorated from 2010 to 2011 but then slightly improved from 2011 to 2012.

Adjusted Total Asset Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net operating revenues (USD $ in millions)	48,017	46,542	35,119	30,990	31,944
Total assets (USD $ in millions)	86,174	79,974	72,921	48,671	40,519

Total asset turnover¹	0.56	0.58	0.48	0.64	0.79
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted net operating revenues (USD $ in millions)	66,230	63,245	56,362	51,338	52,687
Adjusted total assets (USD $ in millions)	95,810	88,909	80,898	61,610	53,646

Adjusted total asset turnover²	0.69	0.71	0.70	0.83	0.98

2012 Calculations

¹ Total asset turnover = Net operating revenues ÷ Total assets
= 48,017 ÷ 86,174 = 0.56

² Adjusted total asset turnover = Adjusted net operating revenues ÷ Adjusted total assets
= 66,230 ÷ 95,810 = 0.69

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Coca-Cola Co.'s adjusted total asset turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

Adjusted Financial Leverage

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Total assets (USD $ in millions)	86,174	79,974	72,921	48,671	40,519
Equity attributable to shareowners of The Coca-Cola Company (USD $ in millions)	32,790	31,635	31,003	24,799	20,472

Financial leverage¹	2.63	2.53	2.35	1.96	1.98
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted total assets (USD $ in millions)	95,810	88,909	80,898	61,610	53,646
Equity attributable to shareowners of The Coca-Cola Company (USD $ in millions)	32,790	31,635	31,003	24,799	20,472

Adjusted financial leverage²	2.92	2.81	2.61	2.48	2.62

2012 Calculations

¹ Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 86,174 ÷ 32,790 = 2.63

² Adjusted financial leverage = Adjusted total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 95,810 ÷ 32,790 = 2.92

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Coca-Cola Co.'s adjusted financial leverage increased from 2010 to 2011 and from 2011 to 2012.

Adjusted Return On Assets (ROA)

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net income attributable to shareowners of The Coca-Cola Company (USD $ in millions)	9,019	8,572	11,809	6,824	5,807
Total assets (USD $ in millions)	86,174	79,974	72,921	48,671	40,519

ROA¹	10.47%	10.72%	16.19%	14.02%	14.33%
Adjusted: from Equity Method to Proportionate Consolidation
Net income attributable to shareowners of The Coca-Cola Company (USD $ in millions)	9,019	8,572	11,809	6,824	5,807
Adjusted total assets (USD $ in millions)	95,810	88,909	80,898	61,610	53,646

Adjusted ROA²	9.41%	9.64%	14.60%	11.08%	10.82%

¹ ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 9,019 ÷ 86,174 = 10.47%

² Adjusted ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted total assets
= 100 × 9,019 ÷ 95,810 = 9.41%

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Coca-Cola Co.'s adjusted ROA deteriorated from 2010 to 2011 and from 2011 to 2012.