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

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Net Operating Revenues:

		Less: Adjustments to Reported Net		Less: Adjustment to
		Operating Revenues		Organic Revenues
			Impact of Acquisitions,			Organic Revenues
	Reported		Divestitures			Excluding Intense
	Net Operating		and Structural	Organic Revenues	Intense Inflationary	Inflationary Pricing
Percent Change	Revenues (GAAP)	Currency Impact	Changes, Net	(Non-GAAP)	Pricing Impact	(Non-GAAP)
Q1 2024	3	(6)	(2)	11	6	5

Page 1

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Gross Margin:

Reported Gross Margin (GAAP)

Items Impacting Comparability (Non-GAAP) Comparable Gross Margin (Non-GAAP) Comparable Currency Impact (Non-GAAP)

Comparable Currency Neutral Gross Margin (Non-GAAP) Impact of Acquisitions, Divestitures and Structural Changes on Comparable Currency Neutral Gross Margin (Non-GAAP)

Underlying Gross Margin (Non-GAAP)

Three Months Ended	Three Months Ended	Basis Point
March 29, 2024	March 31, 2023	Growth
62.52%	60.68%	184
0.24%	(0.25%)
62.28%	60.93%	135
(0.36%)	0.00%
62.64%	60.93%	171
0.50%	(0.63%)
62.14%	61.56%	58

Page 2

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

March 29, 2024

$10,443 4,760 1,716

$16,919

$6,054 1,392 35,104

$42,550

$25,631

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)

March 29, 2024

Trailing Twelve Months

$12,771

985

1,468

1,537

1,104

$12,959 3,508

$16,467

Net Debt Leverage:

Net debt (Non-GAAP) Comparable EBITDA (Non-GAAP) Net debt leverage (Non-GAAP)

	As of
	March 29, 2024
$	25,631
$	16,467
	1.6x

Page 3

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(In millions)

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

March 29, 2024

$10,443 4,760

1,716

$16,919

$6,054 1,392

35,104

$42,550

$25,631

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

EBITDA:

			March 29, 2024		Three Months Ended		Three Months Ended			Three Months Ended		Three Months Ended
		Trailing Twelve Months			March 29, 2024			December 31, 2023				September 29, 2023			June 30, 2023
Income before income taxes		$	12,771			$	3,872			$	2,482			$	3,537			$	2,880
Less income items:
Interest income			985				246				267				248				224
Other income (loss) - net			1,468				1,513				(6)			(130)			91
Add expense items:
Interest expense			1,537				382				413				368				374
Depreciation and amortization			1,104				262				271	2			2903			2814
Earnings before interest, taxes, depreciation and amortization (EBITDA)
(Non-GAAP)		$	12,959			$	2,757			$	2,905			$	4,077			$	3,220
Comparable EBITDA:
Comparable income before income taxes (Non-GAAP)		$	14,571			$	3,861			$	2,649			$	3,924			$	4,137
Less income items:
Interest income			985				246				267				248				224
Comparable other income (loss) - net (Non-GAAP)			(215)			(19)			(119)			(50)			(27)
Add expense items:
Comparable interest expense (Non-GAAP)			1,562				388				419				375				380
Depreciation and amortization			1,104				262				2712			2903			2814
Comparable EBITDA (Non-GAAP)		$	16,467			$	4,284			$	3,191			$	4,391			$	4,601

1. Calculated by subtracting depreciation and amortization of $857 million during the nine months ended September 29, 2023 from depreciation and amortization of $1,128 million during the year ended December 31, 2023.
2. Calculated by subtracting depreciation and amortization of $567 million during the six months ended June 30, 2023 from depreciation and amortization of $857 million during the nine months ended September 29, 2023.
3. Calculated by subtracting depreciation and amortization of $286 million during the three months ended March 31, 2023 from depreciation and amortization of $567 million during the six months ended June 30, 2023.

Page 4