=================================================================
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to ____________
Commission File No. 1-2217
The Coca-Cola Company
(Exact name of Registrant as specified in its Charter)
Delaware 58-0628465
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Coca-Cola Plaza 30313
Atlanta, Georgia (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code (404) 676-2121
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
------- -------
Indicate the number of shares outstanding of each of the Registrant's
classes of Common Stock as of the latest practicable date.
Class of Common Stock Outstanding at April 28, 1995
--------------------- -----------------------------
$.25 Par Value 1,267,499,054 Shares
=================================================================
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
INDEX
Part I. Financial Information
Item 1. Financial Statements (Unaudited) Page Number
Condensed Consolidated Balance Sheets
March 31, 1995 and December 31, 1994 3
Condensed Consolidated Statements of Income
Three months ended March 31, 1995 and 1994 5
Condensed Consolidated Statements of Cash Flows
Three months ended March 31, 1995 and 1994 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Part II. Other Information
Item 1. Legal Proceedings 13
Item 4. Submissions of Matters to a Vote of Security Holders 15
Item 6. Exhibits and Reports on Form 8-K 16
-2-
<PAGE>
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions except share data)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
--------- ------------
<S> <C> <C>
CURRENT
Cash and cash equivalents $ 1,276 $ 1,386
Marketable securities 156 145
--------- -----------
1,432 1,531
Trade accounts receivable, less
allowances of $32 at March 31
and $33 at December 31 1,461 1,470
Finance subsidiary receivables 48 55
Inventories 1,188 1,047
Prepaid expenses and other assets 1,208 1,102
--------- -----------
TOTAL CURRENT ASSETS 5,337 5,205
--------- -----------
INVESTMENTS AND OTHER ASSETS
Equity method investments
Coca-Cola Enterprises Inc. 525 524
Coca-Cola Amatil Limited 620 694
Other, principally bottling companies 1,131 1,114
Cost method investments,
principally bottling companies 152 178
Finance subsidiary receivables 267 255
Marketable securities and other assets 1,110 1,163
--------- -----------
3,805 3,928
--------- -----------
PROPERTY, PLANT AND EQUIPMENT
Land 227 221
Buildings and improvements 1,877 1,814
Machinery and equipment 3,863 3,776
Containers 359 346
--------- -----------
6,326 6,157
Less allowances for depreciation 2,186 2,077
--------- -----------
4,140 4,080
--------- -----------
GOODWILL AND OTHER INTANGIBLE ASSETS 689 660
--------- -----------
$ 13,971 $ 13,873
========= ===========
</TABLE>
-3-
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
LIABILITIES AND SHARE-OWNERS' EQUITY
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
--------- ------------
<S> <C> <C>
CURRENT
Accounts payable and accrued expenses $ 2,837 $ 2,564
Loans and notes payable 1,615 1,757
Finance subsidiary notes payable 322 291
Current maturities of long-term debt 285 35
Accrued taxes 1,542 1,530
--------- -----------
TOTAL CURRENT LIABILITIES 6,601 6,177
--------- -----------
LONG-TERM DEBT 1,225 1,426
--------- -----------
OTHER LIABILITIES 887 855
--------- -----------
DEFERRED INCOME TAXES 124 180
--------- -----------
SHARE-OWNERS' EQUITY
Common stock, $.25 par value -
Authorized: 2,800,000,000 shares
Issued: 1,708,683,039 shares at March 31;
1,707,627,955 shares at December 31 427 427
Capital surplus 1,197 1,173
Reinvested earnings 11,361 11,006
Unearned compensation related to
outstanding restricted stock (71) (74)
Foreign currency translation adjustment (308) (272)
Unrealized gain on securities
available-for-sale 41 48
--------- -----------
12,647 12,308
Less treasury stock, at cost
(439,867,318 shares at March 31;
431,694,661 shares at December 31) 7,513 7,073
--------- -----------
5,134 5,235
--------- -----------
$ 13,971 $ 13,873
========= ===========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-4-
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In millions except per share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1995 1994
----------- ----------
<S> <C> <C>
NET OPERATING REVENUES $ 3,854 $ 3,352
Cost of goods sold 1,445 1,242
--------- ---------
GROSS PROFIT 2,409 2,110
Selling, administrative and general expenses 1,530 1,338
--------- ---------
OPERATING INCOME 879 772
Interest income 64 35
Interest expense 57 43
Equity income 24 7
Other income (deductions) - net 21 (11)
--------- ---------
INCOME BEFORE INCOME TAXES 931 760
Income taxes 293 239
--------- ---------
NET INCOME $ 638 $ 521
========= =========
NET INCOME PER SHARE $ .50 $ .40
========= =========
DIVIDENDS PER SHARE $ .22 $ .195
========= =========
AVERAGE SHARES OUTSTANDING 1,272 1,296
========= =========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-5-
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------
1995 1994
----------- ----------
<S> <C> <C> Three Months Ended
OPERATING ACTIVITIES
Net income $ 638 $ 521
Depreciation and amortization 110 91
Deferred income taxes (1) 8
Equity income, net of dividends (23) --
Foreign currency adjustments 18 (5)
Other noncash items (13) 2
Net change in operating assets
and liabilities (381) (274)
--------- ---------
Net cash provided by operating activities 348 343
--------- ---------
INVESTING ACTIVITIES
Additions to finance subsidiary receivables (23) (43)
Collections of finance subsidiary receivables 19 5
Acquisitions and investments, principally
bottling companies (15) (7)
Purchases of securities (175) (91)
Proceeds from disposals of investments
and other assets 419 25
Purchases of property, plant and equipment (228) (185)
Proceeds from disposals of property, plant
and equipment 22 17
Other investing activities (13) 14
--------- ---------
Net cash provided by (used in)
investing activities 6 (265)
--------- ---------
Net cash provided by operations after
reinvestment 354 78
--------- ---------
FINANCING ACTIVITIES
Issuances of debt 100 228
Payments of debt (213) (12)
Issuances of stock 23 18
Purchases of stock for treasury (440) (166)
Dividends -- (187)
--------- ---------
Net cash used in financing activities (530) (119)
--------- ---------
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 66 2
--------- ---------
CASH AND CASH EQUIVALENTS
Net decrease during the period (110) (39)
Balance at beginning of period 1,386 998
--------- ---------
Balance at end of period $ 1,276 $ 959
========= =========
INTEREST PAID $ 69 $ 57
========= =========
INCOME TAXES PAID $ 279 $ 228
========= =========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-6-
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. They do not include all information and notes
required by generally accepted accounting principles for complete financial
statements. However, except as disclosed herein, there has been no material
change in the information disclosed in the notes to consolidated financial
statements included in the Annual Report on Form 10-K of The Coca-Cola Company
(the Company) for the year ended December 31, 1994. In the opinion of
Management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 1995, are not necessarily
indicative of the results that may be expected for the year ending December 31,
1995.
NOTE B - SEASONAL NATURE OF BUSINESS
Unit sales of the Company's soft drink products are generally greater in the
second and third quarters due to seasonal factors.
NOTE C - INVENTORIES
Inventories consist of the following (in millions):
March 31, December 31,
1995 1994
---------- ------------
Raw materials and supplies $ 777 $ 728
Work in process 2 4
Finished goods 409 315
--------- ---------
$ 1,188 $ 1,047
========= =========
-7-
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE D - SUMMARIZED INCOME STATEMENT DATA OF COCA-COLA ENTERPRISES INC.
At March 31, 1995 and 1994, the Company owned approximately 44 percent and 43
percent, respectively, of the outstanding common stock of Coca-Cola Enterprises
Inc. (Coca-Cola Enterprises) and, accordingly, accounted for its related
investment therein under the equity method of accounting. Coca-Cola
Enterprises meets the definition of a significant equity investee as defined by
Rule 3-09 of Regulation S-X. Summarized income statement data for Coca-Cola
Enterprises is as follows (in millions):
Three Months Ended
March 31, April 1,
1995 1994
----------- -----------
Net operating revenues $ 1,462 $ 1,320
Gross profit 561 521
Net income (loss) 3 (6)
Net income (loss) available to
common share owners 2 (7)
First quarter 1995 results include Coca-Cola Enterprises' acquisition of the
Wichita Coca-Cola Bottling Company from the date of acquisition on January 27,
1995. First quarter 1995 results also reflect a $5 million after-tax gain on
the sale of Coca-Cola Enterprises' 50 percent ownership interest in the
Coca-Cola Bottling Company of the Mid South.
NOTE E - SHARE REPURCHASE PROGRAM
During the first quarter of 1995, the Company purchased approximately 8
million shares of its common stock.
-8-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
VOLUME
SOFT DRINKS: Worldwide unit case volume increased 9 percent and worldwide
gallon shipments of soft drink concentrates and syrups grew 13 percent in the
first quarter of 1995 when compared to the first quarter of 1994.
In the North America sector, unit case volume sold to retail customers grew 3
percent in the first quarter, led by an increase of 3 1/2 percent in the United
States. Solid increases in the Company's core brands as well as sales of new
products, such as Fruitopia, POWERaDE and Minute Maid Juices To Go contributed
to the volume gains. Continued focus on programs designed to increase customer
volume and profit also contributed to first quarter results. North American
gallon shipments of concentrates and syrups to bottlers increased 2 percent
for the first quarter, including growth of 3 percent in the United States.
International gallon shipments of concentrates and syrups increased 18
percent and unit case volume grew 12 percent in the first quarter of 1995.
In the Latin America Group, first quarter unit case volume grew 16 percent,
including gains of 58 percent in Brazil, 9 percent in Chile and 5 percent in
Mexico. The unit case volume gains in the Latin America Group are a result of
new package initiatives and focused brand promotions. Gallon shipments in
Latin America increased 16 percent in the first quarter.
In the Greater Europe Group, first quarter unit case volume grew 7 percent
and gallon shipments increased 13 percent. Unit case volume increased 23
percent in the East Central European Division, 11 percent in the Nordic and
North Eurasia Division and 3 percent in Germany in the first quarter.
In the Africa Group, unit case volume increased 12 percent and gallon
shipments grew 35 percent in the first quarter. Unit case volume rose 13
percent in the Southern Africa Division and 10 percent in the Northern Africa
Division.
Unit case volume increased 12 percent and gallon shipments rose 21 percent in
the Middle and Far East Group in the first quarter. Unit case volume grew 44
percent in China, 25 percent in the Middle East Division, 9 percent in the
Philippines and 20 percent in India. In Japan, unit case volume grew 6 percent
in the first quarter.
FOODS: At Coca-Cola Foods, first quarter unit volume declined 2 percent
while operating income advanced strongly versus the prior year.
-9-
<PAGE>
RESULTS OF OPERATIONS (CONTINUED)
NET OPERATING REVENUES AND GROSS MARGIN
Net operating revenues grew 15 percent in the first quarter of 1995 while
gross profit grew 14 percent. Net revenue growth was due primarily to
increased soft drink gallon shipments, selective price increases, continued
expansion of the Company's bottling and canning operations and a weaker U.S.
dollar versus key currencies in the prior year.
The Company's gross margin contracted slightly to 62.5 percent in the first
quarter of 1995 from 62.9 percent in the first quarter of 1994. The decrease
in gross margin was due primarily to higher sweetener costs and the acquisition
of bottling and canning operations, which typically have lower gross profit to
net revenue relationships, but offer strong cash flows.
SELLING, ADMINISTRATIVE AND GENERAL EXPENSES
Selling expenses were $1,173 million in the first quarter of 1995, compared
to $1,050 million in the first quarter of 1994. The increase was primarily due
to higher marketing investments in support of the Company's volume growth.
Administrative and general expenses were $357 million in the first quarter of
1995, compared to $288 million in the first quarter of 1994. This increase was
due primarily to an increase in the costs of stock-related employee benefits.
OPERATING INCOME AND OPERATING MARGIN
Operating income in the first quarter increased to $879 million, a 14 percent
increase over the first quarter of 1994. The operating margin for the first
quarter of 1995 decreased slightly to 22.8 percent from 23.0 percent in the
first quarter of 1994.
INTEREST INCOME AND INTEREST EXPENSE
Interest income increased in the first quarter of 1995 relative to the
comparable period in 1994, due primarily to rising interest rates and higher
average invested cash equivalents and marketable securities balances. Interest
expense increased in the first quarter due primarily to rising interest rates
on commercial paper borrowings.
EQUITY INCOME
Equity income increased to $24 million in the first quarter, compared to $7
million in the first quarter of 1994. The increase was due primarily to
improved results at Coca-Cola Enterprises and equity income now being reported
from our investment in the Argentina bottler (previously a wholly-owned
consolidated bottling operation), partially offset by lower operating results
at Coca-Cola Amatil Limited, The Coca-Cola Bottling Company of New York, Inc.
and Coca-Cola & Schweppes Beverages Ltd.
-10-
<PAGE>
RESULTS OF OPERATIONS (CONTINUED)
OTHER INCOME (DEDUCTIONS) - NET
Other income (deductions) - net was $21 million for the first quarter of 1995
compared to $(11) in the first quarter of 1994. This $32 million increase was
due primarily to the gain on the sale of certain bottling investments
recognized in the first quarter of 1995, partially offset by increased expenses
related to foreign currency transactions in the first quarter of 1995 versus
the prior year.
INCOME TAXES
The Company's effective tax rate remained at 31.5 percent for the first
quarter of 1995. The Company's effective tax rate reflects tax benefits
derived from significant operations outside the United States which are taxed
at rates lower than the U.S. statutory rate of 35 percent. These benefits are
partially offset by a reduction in the Company's favorable U.S. tax treatment
from manufacturing facilities in Puerto Rico that operate under a negotiated
exemption grant.
FINANCIAL CONDITION
NET CASH FLOW PROVIDED BY OPERATIONS AFTER REINVESTMENT
In the first quarter of 1995, net cash flow after reinvestment was $354
million, an increase of $276 million over the comparable period in 1994. Net
cash provided by operating activities remained relatively constant as higher
net income was offset by additional investments in operating assets and
liabilities in the first quarter of 1995 relative to the comparable period in
1994. Net cash was provided by investing activities in the first quarter of
1995 primarily due to increased proceeds from the disposal of investments and
other assets when compared to the first quarter of 1994. Reinvestment in the
form of property, plant and equipment, the primary use of cash for investing
activities, increased to $228 million in the first quarter of 1995, a
$43 million increase over the comparable period in 1994.
The increase in inventories, accounts payable and accrued expenses at March
31, 1995, as compared to December 31, 1994 amounts, was due primarily to
seasonal factors in the soft drink business.
-11-
<PAGE>
FINANCIAL CONDITION (CONTINUED)
FINANCING
Financing activities primarily represent the Company's net borrowing
activities, dividend payments and share repurchases. Cash used in financing
activities totaled $530 million and $119 million in the first quarters of 1995
and 1994, respectively. Net cash used in financing activities increased
primarily due to a net reduction in borrowings of $113 million in the first
quarter of 1995 compared to net borrowings of $216 million in the first quarter
of 1994. Cash used for share repurchases increased to $440 million, compared
to $166 million in the comparable period in 1994. The net increase in cash
used in financing activities in the first quarter of 1995 caused by these items
was partially offset by a decrease in cash used for dividend payments due to
the timing of payments.
EXCHANGE
International operations are subject to certain opportunities and risks,
including currency fluctuations and governmental actions. The Company closely
monitors its methods of operating in each country and adopts appropriate
strategies responsive to each environment. On a weighted average basis, the
U.S. dollar was approximately 1 percent weaker in the first quarter of 1995
versus key currencies for the comparable period of the prior year.
-12-
<PAGE>
Part II. Other Information
Item 1. Legal Proceedings
As reported in the Company's Annual Report on Form 10-K for the year ended
December 31, 1994, Joseph Siegman, as custodian for Gregory and Michelle
Siegman, filed suit in Delaware Chancery Court on December 15, 1987 against the
Company, Tri-Star Pictures, Inc. ("Tri-Star"), CPI Film Holdings, Inc., Home
Box Office, Inc. and the directors of Tri-Star at that time. Plaintiff, a Tri-
Star stockholder acting on behalf of a class of Tri-Star stockholders other
than defendants and their affiliates and derivatively on behalf of Tri-Star,
challenges a transfer agreement, dated October 1, 1987, among the Company,
certain of its subsidiaries and Tri-Star as the product of an alleged self-
dealing breach of fiduciary duty by the Company and the Tri-Star Board of
Directors. Plaintiff also alleges that the proxy statement issued by Tri-Star
in connection with the transaction inadequately disclosed material facts about
the transaction. Pursuant to the transfer agreement, the Company transferred
its Entertainment Business Sector (other than certain retained assets) to Tri-
Star in exchange for approximately 75 million shares of Tri-Star common stock.
The complaint seeks judgment imposing a constructive trust upon the Tri-Star
shares received by the Company pursuant to the transfer agreement, rescinding
the transfer agreement and awarding compensatory damages in an unspecified
amount.
During 1991 and 1992, the Chancery Court granted defendants' motion to
dismiss the case, and plaintiff appealed. In November 1993, the Delaware
Supreme Court issued an opinion reversing in part the judgment entered by the
Chancery Court and remanding the case for trial on the merits. The Supreme
Court's opinion treated all of the factual allegations in plaintiff's complaint
as true for purposes of the appeal and determined that the complaint was
legally adequate to permit plaintiff an opportunity to prove the complaint
allegations.
In March 1995, an agreement in principle to settle this case was reached
between the class representatives and all of the defendants, including the
Company. The settlement, which has no significant effect on earnings, if
approved by the Delaware Chancery Court, will end this litigation and confirm
that the defendants, including the Company, admit no liability or wrongdoing in
connection with the transaction.
-13-
<PAGE>
Item 1. Legal Proceedings (Continued)
As reported in the Company's Annual Report on Form 10-K for the year ended
December 31, 1994, on April 22, 1994, Deborah A. Heller, et al., individually
and as a class representative, filed a class action lawsuit against the Company
and other sellers of diet soft drink products in the Supreme Court of the State
of New York, County of Kings, which alleged that the plaintiff and other
members of the purported class had been defrauded by the defendants by reason
of their failure to advise consumers that the sweetness level of diet soft
drinks sweetened with aspartame degrades over time. The initial complaint,
which asserted claims based upon common law fraud and violation of New York
state consumer protection statutes, did not indicate a specific damage amount
in its prayer for damages. On July 27, 1994, plaintiffs filed an amended
complaint adding several individually-named plaintiffs and a claim for unjust
enrichment. On September 23, 1994, the Company filed a motion to dismiss
plaintiffs' amended complaint in its entirety. On November 7, 1994, the
plaintiffs filed a motion for summary judgment seeking from the Company damages
of at least $1.187 billion based upon its sales of such diet soft drinks during
the period from April 1988 through December 1993. The New York law upon which
plaintiffs' claims are based allows the Court, at its discretion, to increase
up to three times any damages it awards.
On April 4, 1995, the Court granted defendants' motion to dismiss the
complaint, ruling that the Federal Food and Drug Administration has primary
jurisdiction over the issue raised by plaintiffs; and that in any event,
plaintiffs had failed to state a cause of action under any of the various
fraud, misrepresentation and/or consumer protection counts of their complaint.
The Court also held that plaintiffs had no unjust enrichment claim.
Plaintiffs' cross motions for class action certification and partial summary
judgment were deemed moot in light of the Court's other rulings and were not
formally ruled upon. Plaintiffs have indicated an intention to appeal the
Court's order.
The Company is involved in various other legal proceedings. The Company
believes that any liability to the Company which may arise as a result of these
proceedings, including the proceedings specifically discussed above and in the
Company's Annual Report on Form 10-K for the year ended December 31, 1994, will
not have a material adverse effect on the financial condition of the Company
and its subsidiaries taken as a whole.
-14-
<PAGE>
Item 4. Submissions of Matters to a Vote of Security Holders
The Annual Meeting of Share Owners was held on Wednesday, April 19, 1995, in
Wilmington, Delaware, at which several matters were submitted to a vote of the
share owners:
(a) Votes cast for or withheld regarding the re-election of one Director
for a term expiring in 1996 were as follows:
FOR WITHHELD
------------- -------------
M. Douglas Ivester 1,106,196,286 3,637,689
Votes cast for or withheld regarding the re-election of five Directors for
a term expiring in 1998 were as follows:
FOR WITHHELD
------------- -------------
Herbert A. Allen 1,106,291,750 3,542,225
Charles W. Duncan, Jr. 1,106,397,271 3,436,704
Roberto C. Goizueta 1,106,216,581 3,617,394
James D. Robinson, III 1,104,973,412 4,860,563
Peter V. Ueberroth 1,105,866,725 3,967,250
Additional Directors, whose terms of office as Directors continued after
the meeting, are as follows:
Term expiring in 1996 Term expiring in 1997
--------------------- ---------------------
Cathleen P. Black Ronald W. Allen
Warren E. Buffett Donald F. McHenry
Susan B. King Paul F. Oreffice
William B. Turner James B. Williams
(b) Votes cast for or against and the number of abstentions regarding
each other matter voted upon at the meeting were as follows:
<TABLE>
<CAPTION>
BROKER
DESCRIPTION OF MATTER FOR AGAINST ABSTAIN NON-VOTES
------------- ---------- --------- ------------
<S> <C> <C> <C> <C>
Proposal to amend the 1991
Stock Option Plan of
The Coca-Cola Company 1,072,530,485 25,897,548 11,405,942 0
Ratification of the
appointment of Ernst &
Young LLP as independent
auditors of the Company
to serve for the 1995
fiscal year 1,105,603,046 1,749,103 2,481,826 0
</TABLE>
-15-
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
12 - Computation of Ratios of Earnings to Fixed Charges
27 - Financial Data Schedule for the three months ended
March 31, 1995, submitted to the Securities and
Exchange Commission in electronic format
(b) Reports on Form 8-K:
No report on Form 8-K has been filed during the quarter for which
this report is filed.
-16-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE COCA-COLA COMPANY
(REGISTRANT)
Date: May 11, 1995 By: /s/ Gary P. Fayard
-------------------------------------
Gary P. Fayard
Vice President and Controller
(On behalf of the Registrant and
as Principal Accounting Officer)
-17-
<PAGE>
EXHIBIT INDEX
Exhibit Number and Description
12 - Computation of Ratios of Earnings to Fixed Charges
27 - Financial Data Schedule for the three months ended
March 31, 1995, submitted to the Securities and
Exchange Commission in electronic format
-18-
Exhibit 12
THE COCA-COLA COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In millions except ratios)
<TABLE>
<CAPTION>
Three Months
Ended Year Ended December 31,
March 31, ----------------------------------------------
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Income before
income taxes
and changes
in accounting
principles $ 931 $ 3,728 $ 3,185 $ 2,746 $ 2,383 $ 2,014
Fixed charges 67 236 213 207 222 255
Less:
Capitalized
interest, net (2) (5) (16) (10) (8) (8)
Equity income,
in excess of
dividends (23) (4) (35) (30) (16) (94)
----- ------- ------- ------- ------- -------
Adjusted earnings $ 973 $ 3,955 $ 3,347 $ 2,913 $ 2,581 $ 2,167
===== ======= ======= ======= ======= =======
FIXED CHARGES:
Gross interest
incurred $ 59 $ 204 $ 184 $ 181 $ 200 $ 238
Interest portion of
rent expense 8 32 29 26 22 17
----- ------- ------- ------- ------- -------
Total fixed charges $ 67 $ 236 $ 213 $ 207 $ 222 $ 255
===== ======= ======= ======= ======= =======
Ratios of earnings
to fixed charges 14.5 16.8 15.7 14.1 11.6 8.5
===== ======= ======= ======= ======= =======
<FN>
The Company is contingently liable for guarantees of indebtedness of
independent bottling companies and others (approximately $179 million at
March 31, 1995). Fixed charges for these contingent liabilities have not
been included in the computations of the above ratios as the amounts are
immaterial and, in the opinion of Management, it is not probable that the
Company will be required to satisfy the guarantees.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FINANCIAL STATEMENTS OF THE COCA-COLA COMPANY FOR THE
THREE MONTHS ENDED MARCH 31, 1995, AS SET FORTH IN ITS FORM 10-Q
FOR SUCH QUARTER, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,276
<SECURITIES> 156
<RECEIVABLES> 1,493
<ALLOWANCES> 32
<INVENTORY> 1,188
<CURRENT-ASSETS> 5,337
<PP&E> 6,326
<DEPRECIATION> 2,186
<TOTAL-ASSETS> 13,971
<CURRENT-LIABILITIES> 6,601
<BONDS> 1,225
<COMMON> 427
0
0
<OTHER-SE> 4,707
<TOTAL-LIABILITY-AND-EQUITY> 13,971
<SALES> 3,854
<TOTAL-REVENUES> 3,854
<CGS> 1,445
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<EPS-PRIMARY> .50
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</TABLE>
