Coca-Cola (KO) 10-K risk factor changes: FY2019 vs FY2018

[removed: Obesity] [added: Obesity] and other health-related concerns may reduce demand for some of our [removed: products.][added: products.]

Increasing public concern about obesity; other health-related public concerns surrounding consumption of sugar-sweetened beverages; possible new or increased taxes on sugar-sweetened beverages by government entities to reduce consumption or to raise revenue; additional governmental regulations concerning the [added: advertising,] marketing, labeling, packaging or sale of our sugar-sweetened beverages; and negative publicity resulting from actual or threatened legal actions against us or other companies in our industry relating to the marketing, labeling or sale of sugar-sweetened beverages may reduce demand for, or increase the cost of, our sugar-sweetened beverages, which could adversely affect our profitability.

[removed: If] [added: If] we do not address evolving consumer product and shopping preferences, our business could [removed: suffer.][added: suffer.]

Consumer product preferences have evolved and continue to evolve as a result of, among other things, health, wellness and nutrition considerations, including concerns regarding caloric intake associated with sugar-sweetened beverages and the perceived undesirability of artificial ingredients; shifting consumer demographics; changes in consumer tastes and needs coupled with a rapid expansion of beverage [removed: options;] [added: options and potential delivery methods;] changes in consumer lifestyles; concerns regarding location of origin or source of ingredients and raw materials and the environmental and sustainability impact of [added: ingredient sources and] the product manufacturing process; consumer emphasis on transparency related to [added: ingredients we use in] our products and [removed: packaging;] [added: collection] and [added: recyclability of, and amount of recycled content contained by, our packaging containers and other materials; concerns about the health and welfare of animals in our dairy supply chain; dramatic shifts in consumer shopping patterns as a result of the rapidly evolving digital landscape; and] competitive product and pricing pressures.

If we fail to address past changes in consumer product and shopping preferences, [removed: or] do not successfully anticipate and prepare for future changes in such preferences, [added: or are ineffective or slow in developing and implementing appropriate digital transformation initiatives,] our share of sales, revenue growth and overall financial results could be negatively affected.

[removed: Increased] [added: Increased] competition could hurt our [removed: business.][added: business.]

In addition, the rapid growth of e‑commerce may create additional consumer price deflation by, among other things, facilitating comparison [removed: shopping.][added: shopping, and could potentially threaten the value of some of our legacy route-to-market strategies and thus negatively affect revenues.]

[removed: Water] [added: Water] scarcity and poor quality could negatively impact the Coca-Cola system's costs and [removed: capacity.][added: capacity.]

Water is a limited resource in many parts of the world, facing unprecedented challenges from overexploitation, increasing demand for food and other consumer and industrial products whose manufacturing processes require water, increasing [removed: pollution,] [added: pollution and emerging awareness of potential contaminants,] poor management, [added: lack of physical or financial access to water,] sociopolitical tensions due to lack of public infrastructure in certain areas of the world and the effects of climate change.

[removed: Increased] [added: Increased] demand for food products and decreased agricultural productivity may negatively affect our [removed: business.][added: business.]

[removed: Product] [added: Product] safety and quality concerns could negatively affect our [removed: business.][added: business.]

[removed: Public] [added: Public] debate and concern about perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-derived substances, and of other substances present in our beverage products or packaging materials, may reduce demand for our beverage [removed: products.][added: products.]

In addition, increasing public concern about actual or perceived health consequences of the presence of such ingredients or substances in our beverage products or in packaging materials, whether or not justified, could result in additional governmental regulations concerning the [added: advertising,] marketing, [removed: labeling] [added: labeling, packaging] or sale of our beverages; possible new or increased taxes on our beverages by government entities; and negative publicity, or actual or threatened legal actions against us or other companies in our industry, all of which could damage the reputation of, and may reduce demand for, our beverage products.

[removed: If] [added: If] we are not successful in our innovation activities, our financial results may be negatively [removed: affected.][added: affected.]

[removed: If] [added: If] we are unable to protect our information systems against service interruption, misappropriation of data or breaches of security, our operations could be disrupted, we may suffer financial losses and our reputation may be [removed: damaged.][added: damaged.]

We rely on networks and information systems and other technology ("information systems"), including the Internet and third-party hosted services, to support a variety of business processes and activities, including procurement and supply chain, manufacturing, distribution, invoicing and collection of payments, employee processes, consumer marketing, mergers and [removed: acquisitions] [added: acquisitions,] and research and development.

The Company could also be required to spend significant financial and other resources to remedy the damage caused by a security breach or to repair or replace networks and information [removed: systems.][added: systems*.*]

Although the incidents that we have experienced to date have not had a material effect on our business, financial condition or results of operations, [removed: there can be no assurance that] such incidents [removed: will not] [added: could] have a material adverse effect on us in the future.

[added: The Company] maintains an information risk management program which is supervised by information technology management and reviewed by a cross-functional committee.

[removed: If] [added: If] we fail to comply with personal data protection [added: and privacy] laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which could negatively affect our business and operating [removed: results.][added: results.]

In the ordinary course of our business, we receive, process, transmit and store information relating to identifiable individuals ("personal data"), primarily employees and former [removed: employees.][added: employees but also some consumers.]

[removed: The GDPR] [added: In the European Union ("EU"), the GDPR, which became effective on May 25, 2018 for all EU member states,] includes operational requirements for companies receiving or processing personal data of EU residents [removed: that are partially different from those that had previously been in place] and [removed: includes] [added: provides for] significant penalties for noncompliance.

The changes introduced by the [removed: GDPR,] [added: GDPR and the CCPA,] as well as any other changes to existing personal data protection [added: or privacy] laws and the introduction of such laws in other jurisdictions, have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and security systems, policies, procedures and practices.

[removed: There is no assurance that our] [added: Our] security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we implemented or may implement in the future [removed: will] [added: may not] prevent the improper disclosure of personal data.

[removed: Improper disclosure of personal data in violation of the GDPR and/or of other personal data protection laws could harm our reputation, cause loss of consumer confidence, subject us to government enforcement actions (including fines), or result in] private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results.

[removed: If] [added: If] we are not successful in our efforts to digitize the Coca-Cola system, our financial performance will be negatively [removed: affected.][added: affected.]

[removed: Changes] [added: Changes] in the retail landscape or the loss of key retail or foodservice customers could adversely affect our financial [removed: performance.][added: performance.]

[removed: If] [added: If] we are unable to expand our operations in emerging and developing markets, our growth rate could be negatively [removed: affected.][added: affected.]

Our success depends in part on our ability to grow our business in emerging and developing markets, which in turn depends on economic and political conditions in those markets and on our ability to work with local bottlers to make necessary [added: infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.]

Scarcity [added: of,] or heavy competition [removed: for] [added: for,] talented employee resources could impede our abilities in such markets.

Due to product price, limited purchasing power and cultural differences, [removed: there can be no assurance that] our products [removed: will] [added: may not] be accepted in any particular emerging or developing market.

[removed: Fluctuations] [added: Fluctuations] in foreign currency exchange rates could have a material adverse effect on our financial [removed: results.][added: results.]

In [removed: 2018,] [added: 2019,] we used [removed: 72] [added: 70] functional currencies in addition to the U.S. dollar and derived [removed: $20.5] [added: $25.6] billion of net operating revenues from operations outside the United States.

For information regarding the estimated impact of currency fluctuations on our consolidated and operating segment net operating revenues for [removed: 2018] [added: 2019] and [removed: 2017,] [added: 2018,] refer to the heading "Operations Review — Net Operating Revenues" set forth in Part II, "Item 7.

[removed: If] [added: If] interest rates increase, our net income could be negatively [removed: affected.][added: affected.]

In addition, some credit rating agencies also consider financial information of certain of our major [removed: bottlers.][added: bottling partners.]

If our credit ratings were to be downgraded as a result of changes in our capital structure; our major [removed: bottlers'] [added: bottling partners'] financial performance; changes in the credit rating agencies' methodology in assessing our credit strength; the credit agencies' perception of the impact of credit market conditions on our or our major [removed: bottlers'] [added: bottling partners'] current or future financial performance and financial condition; or for any other reason, our cost of borrowing could increase.

Additionally, if the credit ratings of certain [removed: bottlers] [added: bottling partners] in which we have equity method investments were to be downgraded, such [removed: bottlers'] [added: bottling partners'] interest expense could increase, which would reduce our equity income.

[removed: We] [added: We] rely on our bottling partners for a significant portion of our business.

If we are unable to maintain good relationships with our bottling partners, our business could [removed: suffer.][added: suffer.]

In the United States, the CCPA, which became effective on January 1, 2020, provides for a private right of action for data breaches and requires companies that process information about California residents to make disclosures to consumers about their data collection, use and sharing practices and to allow consumers to opt out of certain data sharing with third parties.

Improper disclosure of personal data in violation of the GDPR, the CCPA and/or of other personal data protection or privacy laws could harm our reputation, cause loss of consumer confidence, subject us to government enforcement actions (including fines), or result in

In addition, in July 2017, the United Kingdom's Financial Conduct Authority, the governing body responsible for regulating the London Interbank Offered Rate ("LIBOR"), announced that it will no longer compel or persuade financial institutions and panel banks to submit rates for the calculation of LIBOR after 2021.

This decision is expected to result in the discontinuance of the use of LIBOR as a reference rate for commercial loans and other indebtedness.

Although the impact of the possible discontinuance of LIBOR publication and transition to alternative reference rates remains unclear, it is possible that these changes may have an adverse impact on our financing costs.

from our historical income tax provisions and accruals.

Consequently, we continuously search for productivity opportunities in our business.

The success of our business depends on our Company's and the Coca-Cola system's ability to attract, develop, retain and motivate a highly skilled and diverse workforce as well as on our success in nurturing a culture that supports our growth and aligns employees around the Company purpose and work that matters most.

An increase in the price, disruption of supply or shortage of fuel and other energy

Increasing concerns about the environmental impact of plastic bottles and other plastic packaging materials could result in reduced demand for our beverage products and increased production and distribution costs.

There are increasing concerns among consumers, governments and other stakeholders about the damaging impact of the proliferation and accumulation of plastic bottles and other packaging materials in the environment, particularly in the world's waterways, lakes and oceans.

We and our bottling partners sell certain of our beverage products in plastic bottles and use other plastic packaging materials that are not biodegradable and, while largely recyclable, may not be regularly recovered and recycled due to low economic value or lack of collection and recycling infrastructure.

If we and our bottling partners do not, or are perceived not to, act responsibly to address plastic materials recoverability and recycling concerns, our corporate image and brand reputation could be damaged, which may cause some consumers to reduce or discontinue consumption of some of our beverage products.

In addition, from time to time we establish and publicly announce goals and commitments to reduce the Coca-Cola system's impact on the environment by increasing our use of recycled plastic and other packaging materials; increasing our use of packaging materials that are made in part of plant-based renewable materials; participating in programs and initiatives to reclaim or recover plastic bottles and other packaging materials that are already in the environment; and taking other actions and participating in other programs and initiatives organized or sponsored by nongovernmental organizations and other groups.

If we and our bottling partners fail to achieve or improperly report on our progress toward achieving our announced environmental goals and commitments, the resulting negative publicity could adversely affect consumer preference for our beverage products.

In addition, in response to environmental concerns, governmental entities in the United States and in many other jurisdictions around the world have adopted or are considering adopting regulations and

policies designed to mandate or encourage plastic packaging waste reduction and an increase of recycling rates or, in some cases, restricting or even prohibiting the use of plastic containers or packaging materials.

These regulations and policies, whatever their scope or form, could increase the cost of our beverage products or otherwise put the Company at a competitive disadvantage.

In addition, our increased focus on reducing plastic containers and other packaging materials waste may require us to incur additional expenses and to increase our capital expenditures.

A reduction in consumer demand for our beverage products and/or an increase in costs and expenditures relating to production and distribution as a result of these environmental concerns regarding plastic bottles and other packaging materials could have an adverse effect on our business and results of operations.

which could make it impossible for us to continue to make sales to bottlers in such countries.

an increase in the frequency and severity of natural disasters.

Increasing concern over climate change also may result in additional legal or regulatory requirements designed to reduce or mitigate the effects of carbon dioxide and other greenhouse gas emissions on the environment.

Increased energy or compliance costs and expenses due to increased legal or regulatory requirements may cause disruptions in, or an increase in the costs associated with, the manufacturing and distribution of our beverage products.

In addition, from time to time we establish and publicly announce goals and commitments to reduce the Coca-Cola system's carbon footprint by increasing our use of recycled packaging materials and participating in environmental and sustainability programs and initiatives organized or sponsored by nongovernmental organizations and other groups to reduce greenhouse gas emissions industry-wide.

If we and our bottling partners fail to achieve or improperly report on our progress toward achieving our carbon footprint reduction goals and commitments, the resulting negative publicity could adversely affect consumer preference for our beverage products.

Changes in applicable laws or regulations or evolving interpretations thereof, including increased or additional regulations to

escalation of grievances and adversely affect the negotiation of collective bargaining agreements.

In addition, our product quality and safety programs and controls may not be sufficiently robust to effectively cope with the expanded range of product offerings introduced through newly acquired businesses or brands, which may increase our costs or subject us to negative publicity.

Also, we may not be able to successfully manage the additional complexities involved with overseeing the various supply chain models as we expand our product offerings and seek to manage acquired businesses in a more independent, less integrated manner.

If we incur unforeseen liabilities, obligations and costs in connection with acquiring or integrating bottling operations or other businesses, experience internal control or product quality failures or are unable to achieve our strategic and financial objectives for Company-owned or -controlled bottling operations and other acquired businesses or brands, our consolidated results could be negatively affected.

If we are unable to successfully manage our complex relationship with Monster, or if for any other reason we fail to realize all or a

The Company

In the European Union ("EU"), the General Data Protection Regulation ("GDPR") became effective on May 25, 2018 for all member states.

infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.

Management's Discussion and Analysis of Financial Condition and Results of Operations" of this report.

Our bottling partners' financial condition is affected in large part by conditions and events that are

Financial Statements and Supplementary Data" of this report.

The Tax Reform Act, which was signed into law on December 22, 2017, significantly affected U.S. income tax law by changing how the United States imposes income tax on multinational corporations.

As permitted by Staff Accounting Bulletin No. 118 ("SAB 118"), we recorded an original provisional estimate of the effect of the Tax Reform Act in our 2017 consolidated financial statements and have subsequently finalized our accounting analysis based on the guidance, interpretations and data available as of December 31, 2018.

For additional information regarding the Tax Reform Act and the final tax amounts recorded in our consolidated financial statements, refer to the heading "Critical Accounting Policies and Estimates — Income Taxes" set forth in Part II, "Item 7.

For information regarding our productivity and reinvestment program, refer to Note 19 of Notes to Consolidated Financial Statements set forth in Part II, "Item 8.

We have incurred, and we expect will continue to incur, significant costs and expenses in connection with our productivity and reinvestment program and associated initiatives.

If we are unable to implement some or all of these productivity and reinvestment initiatives fully or in the envisioned timeframe, or we otherwise do not timely capture the efficiencies, cost savings and revenue growth opportunities we

anticipate from these initiatives, our results of operations for future periods could be negatively affected.

The success of our business depends on our ability to attract, train, develop and retain a highly skilled and diverse workforce.

areas of the world may negatively affect the supply of corn, which in turn may result in shortages of and higher prices for HFCS.

The imposition of retaliatory

sugarcane, corn, sugar beets, citrus, coffee and tea, which are important sources of ingredients for our products, and could impact the food security of communities around the world.

Our equity

If we are unable to achieve such objectives, our consolidated results could be negatively affected.

[removed: Overview][added: Overview]

| • | [removed: Our Business] [added: *Our Business*] — a general description of our business and the nonalcoholic beverage segment of the commercial beverage industry; our [removed: objective; our strategic priorities;] [added: platform for sustained performance;] our core capabilities; and challenges and risks of our business. |

| • | [removed: Critical] [added: *Critical] Accounting Policies and [removed: Estimates] [added: Estimates*] — a discussion of accounting policies that require critical judgments and estimates. |

| • | [removed: Operations Review] [added: *Operations Review*] — an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating segments are material to an understanding of our business as a whole, we present the discussion on a consolidated basis. |

| • | [removed: Liquidity,] [added: *Liquidity,] Capital Resources and Financial [removed: Position] [added: Position*] — an analysis of cash flows; off-balance sheet arrangements and aggregate contractual obligations; foreign exchange; [added: and] the impact of inflation and changing [removed: prices; and an overview of financial position.] [added: prices.] |

[removed: Our Business][added: Our Business]

[removed: General][added: General]

We make our branded beverage products available to consumers throughout the world through our independent [added: network of] bottling partners, distributors, wholesalers and retailers as well as Company-owned or -controlled bottling and distribution operations — the world's largest [added: nonalcoholic] beverage distribution system.

Beverages bearing trademarks owned by or licensed to us account for [removed: more than 1.9] [added: 2.0] billion of the approximately 61 billion servings of all beverages consumed worldwide every day.

Our bottling partners either combine [removed: the] concentrates with sweeteners (depending on the product), still water [removed: and/or] [added: or] sparkling water, or combine [removed: the] syrups with [added: still or] sparkling [removed: water] [added: water,] to produce finished beverages.

Our concentrate operations are included in our geographic operating [removed: segments.][added: segments and our Global Ventures operating segment.]

These operations are generally included in one of our geographic operating [removed: segments.][added: segments or our Global Ventures operating segment.]

| Year Ended December 31, | [removed: 2018] [added: 2019] | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | |

| Concentrate operations | [removed: 64] [added: 55] | [removed: %] [added: %] | [removed: 51] [added: 58] | % | [removed: 40] [added: 50] | % |

| Finished product operations | [removed: 36] [added: 45] | | [removed: 49] [added: 42] | | [removed: 60] [added: 50] | |

| Total | [removed: 100] [added: 100] | [removed: %] [added: %] | 100 | % | 100 | % |

| Year Ended December 31, | [removed: 2018] [added: 2019] | | [removed: 2017] [added: 2018] | | [removed: 2016] [added: 2017] | |

| Concentrate operations | [removed: 85] [added: 83] | [removed: %] [added: %] | [removed: 78] [added: 82] | % | [removed: 76] [added: 77] | % |

| Finished product operations | [removed: 15] [added: 17] | | [removed: 22] [added: 18] | | [removed: 24] [added: 23] | |

| Total | [removed: 100] [added: 100] | [removed: %] [added: %] | 100 | % | 100 | % |

[removed: The] [added: The] Nonalcoholic Beverage Segment of the Commercial Beverage [removed: Industry][added: Industry]

We, along with other beverage companies, are affected by a number of factors, including, but not limited to, [added: the] cost to manufacture and distribute products, consumer spending, economic conditions, availability and quality of water, consumer preferences, inflation, political climate, local and national laws and regulations, foreign currency fluctuations, fuel prices and weather patterns.

[removed: | • | Disciplined growth |][added: *Disciplined Portfolio Growth*]

[removed: In order to execute on these strategic priorities,] [added: To support our platform for sustained performance,] we must [removed: further] [added: continue to] enhance our core capabilities of consumer marketing, commercial leadership and franchise leadership.

[removed: Core Capabilities][added: Core Capabilities]

[removed: Consumer Marketing][added: *Consumer Marketing*]

We are focusing on marketing strategies to drive volume growth in emerging markets, increase our brand value in developing markets and grow net [added: operating] revenues and profit in our developed markets.

[removed: Commercial Leadership][added: *Commercial Leadership*]

We focus on ensuring that our customers have the right product and package offerings and the right promotional tools to [removed: deliver] [added: create] enhanced value [removed: to] [added: for] themselves and the Company.

[removed: Franchise Leadership][added: *Franchise Leadership*]

[removed: Challenges] [added: Challenges] and [removed: Risks][added: Risks]

[removed: Obesity][added: *Obesity*]

[removed: Evolving] [added: *Evolving] Consumer [removed: Preferences][added: Preferences*]

We are committed to meeting their needs and to generating new growth through our portfolio of more than 500 brands and more than [removed: 4,300] [added: 4,700] beverage products (including more than [removed: 1,400] [added: 1,600] low- and no-calorie products), new product offerings, innovative and sustainable packaging, and ingredient education efforts.

[removed: Increased] [added: *Increased] Competition and Capabilities in the [removed: Marketplace][added: Marketplace*]

Our Company faces strong competition from [removed: well-established,] [added: well-established] global companies as well as numerous regional and local companies.

We must continuously strengthen our capabilities in marketing and innovation in order to compete in a digital [removed: environment,] [added: environment and] maintain our brand loyalty and market share while we selectively expand into other profitable categories of the nonalcoholic beverage segment of the commercial beverage industry.

[removed: Product] [added: *Product] Safety and [removed: Quality][added: Quality*]

[removed: Ingredient] [added: *Ingredient] Quality and [removed: Quantity][added: Quantity*]

As demand for water continues to increase around the world, we expect continued action on our part [removed: to] [added: will] help with the successful long-term stewardship of this critical natural resource, both for our business and the communities we serve.

Our Platform for Sustained Performance

We have established a platform for sustained performance centered around disciplined portfolio growth; an aligned and engaged bottling system; and winning with our stakeholders — all supported by revenue growth management and brand-building initiatives.

| • | Continuous innovation to offer consumers more personalized product solutions that match their tastes and lifestyles |

| • | Leveraging the Coca-Cola system to lift, shift and scale leading brands and winning concepts quickly and efficiently around the world |

| • | Utilizing mergers and acquisitions opportunities that strike the right balance between strategic rationale, financial returns and risk profile as an enabler to further our growth strategy |

*An Aligned and Engaged Bottling System*

| • | Strategically aligned bottling partners with a sharper focus on value growth rather than volume growth |

| • | Gaining efficiencies through scale and improved supply chains |

| • | Strong marketplace execution across the bottling system |

| • | A winning culture |

*Winning with Our Stakeholders*

| • | Succeeding as a company by empowering our employees, satisfying consumers with a wide variety of beverage options, and providing solutions to grow our customers' beverage businesses |

| • | Making a positive difference in the communities where we operate |

| • | Helping to create value for all of our stakeholders for a better shared future |

Underpinning our platform for sustained performance are three enablers: digitizing the enterprise; fostering a growth culture; and growing sustainably.

*Digitizing the Enterprise*

The digital evolution is changing consumers' behaviors, influencing the way consumers think, interact and ultimately how they shop.

We believe this evolution impacts every aspect of the Coca-Cola system and creates an opportunity to partner in different ways with our customers and re-engineer our supply chain and route-to-market.

*Fostering a Growth Culture*

We believe that sustainable and profitable growth is the product of a strong culture, with a focus on our employees, customers and consumers worldwide.

As we move our business into the future, we will continue to drive a growth culture centered around curiosity, empowerment, inclusion and agility.

Our belief is that focusing on these behaviors will enhance our associates' work performance and help us become a more growth-minded company.

*Growing Sustainably*

We are focused on giving people the drinks they want while trying to improve the world we all share, turning our passion for consumers into brands people love and creating shared opportunities through growth.

We act in ways which we believe will create a more sustainable and better shared future for all of our stakeholders.

We attempt to make a positive difference in peoples' lives, communities and our planet by doing business the right way.

Coronavirus Impact

Beginning in January 2020, concerns related to the spread of the novel coronavirus COVID-19 have caused a disruption to our business, primarily in China.

While we currently expect this business disruption to be temporary, there is uncertainty around its duration and its broader impact, and therefore the effects it will have on our business.

However, based on our current expectations, we believe this disruption will negatively impact our unit case volume and financial results for the first quarter of 2020.

At this time, we do not expect this disruption to have a significant impact on our full year 2020 unit case volume or financial results.

The cost basis is determined by the specific identification method.

Company's actual cost of capital has changed.

Our Global Ventures operating segment includes the results of our Costa, innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster, each of which is its own reporting unit.

In 2020, we expect our net periodic benefit income related to defined benefit pension plans to be approximately $69 million.

revenue, a component of net operating revenues in our consolidated statement of income.

We generally do not consider the acquisition of a brand to be a structural change.

Therefore, in the year that a license agreement is entered into, the unit case

volume and concentrate sales volume related to the brand is incremental to prior year volume.

We generally do not consider the licensing of a brand to be a structural change.

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Our Objective

Our objective is to use our formidable assets — our brands, financial strength, unrivaled distribution system, global reach, and the talent and strong commitment of our management and associates — to achieve long-term sustainable growth.

To accomplish our objective, we are focused on:

| ◦ | Turning our passion for consumers into drinks people come back to again and again, whether that means less sugar, more vitamins, or exciting new flavors |

| ◦ | Building relevant brands people love and scaling them around the world quickly and consistently |

| ◦ | Using the Coca-Cola system advantage to put our drinks in more hands in more places more quickly than anyone else |

| • | Doing business the right way, not just the easy way |

| ◦ | Being leaders in responsible water use and giving back to nature and communities |

| ◦ | Contributing to the elimination of waste, including through package innovation, sharing of package innovation and recycling initiatives |

| ◦ | Caring for people and communities, with a special focus on women’s economic empowerment |

| • | Tapping into the passion of our people |

| ◦ | Building an inclusive culture of curiosity and empowerment where diverse perspectives are essential as we strive for progress, not perfection |

Strategic Priorities

We have five strategic priorities designed to help us achieve our objective.

These strategic priorities are accelerating growth of a consumer-centric brand portfolio; driving our revenue growth algorithm; strengthening the Coca-Cola system; digitizing the enterprise; and unlocking the power of our people.

female farmers, and environmental sustainability designed to help address these agricultural challenges.

Certain prior year amounts in Management's Discussion and Analysis of Financial Condition and Results of Operations have been revised to conform to the current year presentation as a result of the adoption of certain accounting standards that became effective January 1, 2018, as applicable.

Our Company's investments, plus any loans and guarantees, and other subordinated financial support related to these VIEs totaled $3,916 million and $4,523 million as of December 31, 2018 and 2017, respectively, representing our maximum exposures to loss.

The Company's investments, plus any loans and guarantees, related to these VIEs were not individually significant to the Company's consolidated financial statements.

In addition, our Company holds interests in certain VIEs, primarily bottling operations, for which we were determined to be the primary beneficiary.

As a result, we have consolidated these entities.

Our Company's investments, plus any loans and

guarantees, related to these VIEs totaled $49 million and $1 million as of December 31, 2018 and 2017, respectively, representing our maximum exposures to loss.

The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company's consolidated financial statements.

We recognized a cumulative effect adjustment of $409 million, net of tax, to increase the

opening balance of reinvested earnings with an offset to accumulated other comprehensive income (loss) ("AOCI") as of January 1, 2018 in connection with the adoption of ASU 2016-01.

The following table presents the carrying values of our investments in equity and debt securities (in millions):

| December 31, 2018 | Carrying Value | | | | Percentage of Total Assets | |

The Company generally hedges anticipated exposures up to [removed: 36] [added: 48] months in advance; however, the majority of our derivative instruments expire within 24 months or less.

[removed: Foreign] [added: Foreign] Currency Exchange [removed: Rates][added: Rates]

In [removed: 2018,] [added: 2019,] we used [removed: 72] [added: 70] functional currencies in addition to the U.S. dollar and generated [removed: $20,512 million] [added: $25.6 billion] of our net operating revenues from operations outside the United States; therefore, weaknesses in some currencies may be offset by strengths in other currencies over time.

Our Company enters into forward exchange contracts and purchases foreign currency options [added: and collars] (principally [removed: euros,] [added: euro,] British [removed: pounds] [added: pound] sterling and Japanese yen) [removed: and collars] to hedge certain portions of forecasted cash flows denominated in foreign currencies.

The total notional values of our foreign currency derivatives were [removed: $17,142] [added: $14,276] million and [removed: $13,057] [added: $17,142] million as of December 31, [removed: 2018] [added: 2019] and [removed: 2017,] [added: 2018,] respectively.

The fair value of the contracts that qualify for hedge accounting resulted in a net unrealized gain of [removed: $83] [added: $6] million as of December 31, [removed: 2018,] [added: 2019,] and we estimate that a 10 percent weakening of the U.S. dollar would have eliminated the net unrealized gain and created a net unrealized loss of [removed: $191] [added: $84] million.

The fair value of the contracts that do not qualify for hedge accounting resulted in a net unrealized loss of [removed: $40] [added: $26] million as of December 31, [removed: 2018,] [added: 2019,] and we estimate that a 10 percent weakening of the U.S. dollar would have eliminated the [removed: net] unrealized loss and created a net unrealized gain of [removed: $217] [added: $31] million.

[removed: Interest Rates][added: Interest Rates]

Based on the Company's variable-rate debt and derivative instruments outstanding as of December 31, [removed: 2018,] [added: 2019,] we estimate that a 1 percentage point increase in interest rates would have increased interest expense by [removed: $251] [added: $241] million in [removed: 2018.][added: 2019.]

We estimate that a 1 percentage point increase in interest rates would result in a [removed: $100] [added: $47] million decrease in the fair value of our portfolio of highly liquid debt securities.

[removed: Commodity Prices][added: Commodity Prices]

The fair value of the contracts that [added: do not] qualify for hedge accounting resulted in a net [removed: unrealized] loss of [removed: $1] [added: $4] million as of December 31, [removed: 2018,] [added: 2019,] and we estimate that a 10 percent decrease in underlying commodity prices would have increased the net unrealized loss to [removed: $2] [added: $38] million.

The fair value of the contracts that [removed: do not] qualify for hedge accounting resulted in a net unrealized loss of [removed: $44] [added: less than $1] million as of December 31, [removed: 2018,] [added: 2019,] and we estimate that a 10 percent decrease in underlying commodity prices would have [removed: increased the net unrealized loss to $69 million.][added: an insignificant impact.]

The total notional values of our commodity derivatives were $427 million and $382 million as of December 31, 2019 and 2018, respectively.

These values included derivative instruments that are designated and qualify for hedge accounting as well as

economic hedges.

Open commodity derivatives that qualify for hedge accounting had notional values of $9 million and $35 million as of December 31, 2018 and 2017, respectively.

Open commodity derivatives that do not qualify for hedge accounting had notional values of $373 million and $357 million as of December 31, 2018 and 2017, respectively.

[removed: General][added: General]

We make our branded beverage products available to consumers throughout the world through our network of independent bottling partners, distributors, wholesalers and retailers as well as Company-owned or -controlled bottling and distribution operations — the world's largest [added: nonalcoholic] beverage distribution system.

Beverages bearing trademarks owned by or licensed to us account for [removed: more than 1.9] [added: 2.0] billion of the approximately 61 billion servings of all beverages consumed worldwide every day.

[removed: Operating Segments][added: Operating Segments]

[removed: As of December 31, 2018, our] [added: Our] operating structure [removed: included] [added: includes] the following operating segments, which are sometimes referred to as "operating groups" or "groups":

Our operating structure [removed: as of December 31, 2018] also [removed: included] [added: includes] Corporate, which consists of two components: (1) a center focused on strategic initiatives, policy and [removed: governance] [added: governance;] and (2) an enabling services organization focused on both simplifying and standardizing key transactional processes and providing support to business units through global centers of excellence.

[removed: Refer] [added: For additional information about our operating segments and Corporate, refer] to Note [removed: 22] [added: 21] of Notes to Consolidated Financial Statements set forth in Part II, "Item 8.

Financial Statements and Supplementary Data" of this [removed: report for information regarding the Costa acquisition.][added: report.]

[removed: Products] [added: Products] and [removed: Brands][added: Brands]

| • | "concentrates" means [removed: flavoring] [added: flavorings and other] ingredients [added: which, when combined with water] and, depending on the product, sweeteners [added: (nutritive or non-nutritive) are] used to prepare syrups or finished [removed: beverages] [added: beverages,] and includes [removed: powders or] minerals [added: and other powders] for purified water products; |

| • | "syrups" means [added: an intermediate product in the] beverage [removed: ingredients] [added: manufacturing process] produced by combining concentrates [added: with water] and, depending on the product, sweeteners [removed: and added water;] [added: (nutritive or non-nutritive);] |

Our bottling partners either combine [removed: the] concentrates with sweeteners (depending on the product), still water [removed: and/or] [added: or] sparkling water, or combine [removed: the] syrups with [added: still or] sparkling [removed: water] [added: water,] to produce finished beverages.

Our concentrate operations are included in our geographic operating [removed: segments.][added: segments and our Global Ventures operating segment.]

[removed: In certain markets, the Company also operates non-bottling finished product] operations in which we sell finished beverages to distributors and wholesalers that are generally not one of the Company's bottling partners.

These operations are generally included in one of our geographic operating [removed: segments.][added: segments or our Global Ventures operating segment.]

In the United States, we manufacture fountain syrups and sell them to fountain retailers, who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling [removed: partners,] [added: partners] who resell the fountain syrups to fountain retailers.

Management's Discussion and Analysis of Financial Condition and Results of Operations" of this [removed: report, which is incorporated herein by reference.][added: report.]

Management's Discussion and Analysis of Financial Condition and Results of Operations" of this [removed: report, which is incorporated herein by reference.][added: report.]

| • | [removed: sparkling] [added: sparkling] soft [removed: drinks:] [added: drinks:] Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, [added: Fresca,] Schweppes,* Sprite, Thums Up; |

| • | [removed: water,] [added: water,] enhanced water and sports [removed: drinks:] [added: drinks:] Aquarius, [added: Ciel,] Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, [removed: Powerade;] [added: Powerade, Topo Chico;] |

| • | [removed: juice,] [added: juice,] dairy and plant-based [removed: beverages:] [added: beverages:] AdeS, Del Valle, [added: fairlife,] innocent, Minute Maid, Minute Maid Pulpy, Simply, ZICO; and |

| • | [removed: tea] [added: tea] and [removed: coffee:] [added: coffee:] Ayataka, Costa, [added: doğadan,] FUZE TEA, Georgia, Gold Peak, HONEST [removed: TEA.] [added: TEA, Kochakaden.] |

| • | Certain Coca-Cola system bottlers distribute certain brands of [removed: Monster,] [added: Monster Beverage Corporation ("Monster"),] primarily Monster Energy, in designated territories in the United States, Canada and other international territories pursuant to distribution coordination agreements between the Company and Monster and related distribution agreements between Monster and Coca-Cola system bottlers. |

[removed: Distribution System][added: Distribution System]

We make our branded beverage products available to consumers in more than 200 countries and territories through our network of independent bottling partners, distributors, wholesalers and retailers as well as Company-owned or -controlled bottling and distribution operations — the world's largest [added: nonalcoholic] beverage distribution system.

Consumers enjoy finished beverage products bearing trademarks owned by or licensed to us at a rate of [removed: more than 1.9] [added: 2.0] billion servings each day.

Our strong and stable bottling and distribution system helps us to capture growth by manufacturing, distributing and selling existing, enhanced and new innovative products to [removed: our] consumers throughout the world.

The Coca-Cola system sold [removed: 29.6] [added: 30.3] billion, [removed: 29.2] [added: 29.6] billion and [removed: 29.3] [added: 29.2] billion unit cases of our products in [removed: 2018, 2017] [added: 2019, 2018] and [removed: 2016,] [added: 2017,] respectively.

Sparkling soft drinks represented 69 percent of our worldwide unit case volume for each of [removed: 2018, 2017] [added: 2019, 2018] and [removed: 2016.][added: 2017.]

Trademark Coca-Cola accounted for 45 percent of our worldwide unit case volume for each of [removed: 2018, 2017] [added: 2019, 2018] and [removed: 2016.][added: 2017.]

In [removed: 2018,] [added: 2019,] unit case volume in the United States represented 18 percent of the Company's worldwide unit case volume.

Unit case volume outside the United States represented 82 percent of the Company's worldwide unit case volume for [removed: 2018.][added: 2019.]

The countries outside the United States in which our unit case volumes were the largest were Mexico, China, Brazil and [removed: Japan,] [added: India,] which together accounted for 31 percent of our worldwide unit case volume.

Our five largest independent bottling partners based on unit case volume in [removed: 2018] [added: 2019] were:

| • | Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), which has bottling and distribution operations in Mexico (a substantial part of central Mexico, including Mexico City, as well as southeast and northeast Mexico), Guatemala (nationwide), Nicaragua (nationwide), Costa Rica (nationwide), Panama (nationwide), Colombia (most of the country), Venezuela (nationwide), Brazil (greater São Paulo, Campiñas, Santos, the state of Mato Grosso do Sul, the [added: state of Paraná, the state of Santa Catarina, part of the state of Rio Grande do Sul, part of the state of Goiás, part of the state of Rio de Janeiro and part of the state of Minas Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and Uruguay (nationwide);] |

| • | Coca-Cola HBC AG ("Coca-Cola Hellenic"), which has bottling and distribution operations in Armenia, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, [removed: the Former Yugoslav Republic of Macedonia,] Greece, Hungary, Italy, Latvia, Lithuania, Moldova, Montenegro, Nigeria, [added: North Macedonia,] Northern Ireland, Poland, Republic of Ireland, Romania, the Russian Federation, Serbia, Slovakia, Slovenia, Switzerland and Ukraine; |

In [removed: 2018,] [added: 2019,] these five bottling partners combined represented 40 percent of our total unit case volume.

[removed: Bottler's Agreements][added: Bottler's Agreements]

Also, in [removed: some] [added: most] markets, in an effort to allow our Company and our bottling partners to grow together through shared value, aligned financial objectives and the flexibility necessary to meet consumers' always changing needs and tastes, we [removed: worked with our bottling partners to develop and implement] [added: have implemented] an incidence-based concentrate pricing model.

[removed: Bottler's] [added: *Bottler's] Agreements Outside the United [removed: States][added: States*]

Our objective is to execute our growth strategy centered around disciplined portfolio growth; an aligned and engaged bottling system; and winning with our stakeholders — all supported by revenue growth management and brand-building initiatives — to become more competitive and to accelerate growth in a manner that creates value for our shareowners.

| • | Global Ventures |

In certain markets, the Company also operates non-bottling finished product

The principal

Our supply chain for non-nutritive sweeteners and certain other ingredients for our products includes suppliers in China.

As a result of the outbreak of the novel coronavirus COVID-19, beginning in January 2020, our suppliers in China have experienced some delays in the production and export of these ingredients.

We have initiated contingency supply plans and do not foresee a short-term impact due to these delays.

However, we may see tighter supplies of some of these ingredients in the longer term should production or export operations in China deteriorate.

We are also subject to various federal, state and international laws and regulations related to privacy and data protection, including the European Union’s General Data Protection Regulation ("GDPR"), which became effective in May 2018, and the California Consumer Privacy Act of 2018 ("CCPA"), which became effective on January 1, 2020.

The interpretation and application of data privacy and data protection laws and regulations are often uncertain and are evolving in the United States and internationally.

We monitor pending and proposed legislation and regulatory initiatives to ascertain their relevance to and potential impact on our business and develop strategies to address regulatory trends and developments, including any required changes to our privacy and data protection compliance programs and policies.

The increase in the total number of employees was primarily due to the acquisition of Costa Limited ("Costa").

In addition, we routinely post on the "Investors" page of our website news releases, announcements and other statements about our business and results of operations, some of which may contain information that may be deemed material to investors.

Therefore, we encourage investors to monitor the "Investors" page of our website and review information we post on that page.

Our objective is to use our Company's assets — our brands, financial strength, unrivaled distribution system, global reach, and the talent and strong commitment of our management and associates — to become more competitive and to accelerate growth in a manner that creates value for our shareowners.

In January 2019, we established a new operating segment, Global Ventures, which includes the results of Costa Limited ("Costa"), which we acquired on January 3, 2019, and the results of our innocent and Doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster Beverage Corporation ("Monster").

| • | We and certain of our bottling partners distribute products of fairlife, LLC ("fairlife"), our joint venture with Select Milk Producers, Inc., a dairy cooperative, including fairlife ultra-filtered milk and Core Power, a high-protein milk shake, in the United States and Canada. |

We continue to expand our marketing presence in an effort to increase our unit case volume and net operating revenues in developed, developing and emerging markets.

state of Paraná, the state of Santa Catarina, part of the state of Rio Grande do Sul, part of the state of Goiás, part of the state of Rio de Janeiro and part of the state of Minas Gerais), Argentina (federal capital of Buenos Aires and surrounding areas) and Uruguay (nationwide);

In such instances, we have authorized certain bottlers to (1) manufacture Company Trademark

method investment, our Company continues to participate in the bottler's results of operations through our share of the equity method investee's earnings or losses.

We purchase

Proposition 65 exposes all food and beverage producers to the possibility of having to provide warnings on their products in California because it does not provide for any generally applicable quantitative threshold below which the presence of a listed substance is exempt from the warning requirement.

believes that, except as disclosed in [removed: U.S.] [added: "U.S.] Federal Income Tax [removed: Dispute] [added: Dispute"] below, the total liabilities of the Company that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Company taken as a whole.

[removed: Aqua-Chem Litigation][added: *Aqua-Chem Litigation*]

The Company sold Aqua-Chem to Lyonnaise American Holding, Inc., in 1981 under the terms of a stock sale [added: agreement.]

Aqua-Chem was first named as a defendant in asbestos lawsuits in or around 1985 and currently has approximately [removed: 40,000] [added: 15,000] active claims pending against it.

[removed: On October 29,] 2013, the Wisconsin Court of Appeals affirmed the grant of summary judgment in favor of the Company and Aqua-Chem.

[removed: U.S.] [added: *U.S.] Federal Income Tax [removed: Dispute][added: Dispute*]

On September 17, 2015, the Company received a Statutory Notice of Deficiency [removed: ("Notice")] [added: (the "Notice")] from the IRS for the tax years 2007 through [removed: 2009,] [added: 2009] after a five-year audit.

In the Notice, the IRS claimed that the Company's [removed: United States] [added: U.S.] taxable income should be increased by an amount that creates a potential additional federal income tax liability of approximately $3.3 billion for the [removed: period,] [added: period] plus interest.

The disputed amounts largely relate to a transfer pricing matter involving the appropriate amount of taxable income the Company should report in the United States in connection with its licensing of intangible property to certain related foreign licensees regarding the manufacturing, distribution, sale, marketing and promotion of products in [removed: overseas] [added: certain foreign] markets.

During the 2007-2009 audit period, the Company followed the same transfer pricing methodology for these licenses that had consistently been followed since the methodology was agreed with the IRS in a 1996 closing agreement [added: (the "Closing Agreement")] that applied back to [added: 1987.]

The [removed: closing agreement] [added: Closing Agreement] provided prospective penalty protection conditioned on the [removed: Company’s] [added: Company's] continued adherence to the prescribed methodology absent [added: a] change in material facts or circumstances [removed: and] [added: or] relevant federal tax law.

The Notice represents a repudiation of the methodology previously adopted in the [removed: 1996 closing agreement.][added: Closing Agreement.]

[removed: To] [added: Due to] the [removed: extent] [added: fact that] the matter remains designated, the Company [removed: will be] [added: is] prevented from pursuing any administrative settlement at IRS Appeals or under the IRS Advance Pricing and Mutual Agreement Program.

On October 4, 2017, the IRS filed an amended answer to the Company's petition in which it increased its transfer pricing adjustment by $385 [removed: million] [added: million,] resulting in an additional tax adjustment of $135 million.

The Company and the IRS filed and exchanged final post-trial briefs in [removed: February] [added: April] 2019.

It is not known how much time will elapse thereafter prior to the issuance of the Court's [removed: decision.][added: opinion.]

In the interim, or subsequent to the [removed: Tax Court's decision,] [added: court's opinion,] the IRS may propose similar adjustments for years subsequent to the 2007-2009 litigation period.

While the Company continues to strongly disagree with the IRS' position, there is no assurance that the [removed: U.S. Tax Court] [added: court] will rule in the Company's favor, and it is possible that all or some portion of the adjustment proposed by the [removed: IRS] Notice ultimately could be sustained.

In that event, the Company will be subject to significant additional liabilities for the years at issue and potentially also for subsequent periods, which could have a material adverse impact on the Company's financial position, results of [removed: operations] [added: operations,] and cash flows.

On October 29,

*Environmental Matter*

In April 2019, the Company received a Finding and Notice of Violation ("NOV") from the United States Environmental Protection Agency ("EPA") alleging that the Company violated the California Truck and Bus Regulation and the California Drayage Truck Regulation by failing to verify compliance with such regulations by certain diesel-fueled vehicles owned by third parties that the Company caused to be operated in California.

The Company reached a settlement with the EPA regarding this matter under which it paid a civil penalty of $145,000.

agreement.

1987.

Any such adjustments related to years prior to 2018, either in the litigation period or later, may have an impact on the transition tax payable as part of the Tax Reform Act.

[removed: UNITED STATES][added: UNITED STATES]

[removed: SECURITIES] [added: SECURITIES] AND EXCHANGE [removed: COMMISSION][added: COMMISSION]

[removed: Washington,] [added: WASHINGTON,] D.C. [removed: 20549][added: 20549]

[removed: FORM 10-K][added: FORM 10-K]

| [removed: ý] [added: ☒] | | [removed: ANNUAL] [added: ANNUAL] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

[removed: For] [added: For] the fiscal year [removed: ended December] [added: ended December] 31, [removed: 2018][added: 2019]

| [removed: o] [added: ☐] | | [removed: TRANSITION] [added: TRANSITION] REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF [removed: 1934] [added: 1934] |

[removed: For] [added: For] the transition period from [removed: to][added: to]

[removed: Commission] [added: Commission] File [removed: Number 001-02217][added: Number 001-02217]

[removed: ][added: ]

| [removed: Delaware] (State or other jurisdiction of [removed: incorporation or organization)] [added: incorporation)] | | [removed: 58-0628465] (I.R.S. Employer Identification No.) |

| [removed: One Coca-Cola Plaza, Atlanta, Georgia] (Address of principal executive offices) | | [removed: 30313] (Zip Code) |

[removed: Registrant's] [added: Registrant's] telephone number, including area [removed: code: (404) 676-2121][added: code: (404) 676-2121]

[removed: Securities] [added: Securities] registered pursuant to Section 12(b) of the [removed: Act:][added: Act:]

| [removed: Title] [added: Title] of each [removed: class] [added: class] | [added: Trading Symbol(s)] | [removed: Name] [added: Name] of each exchange on which [removed: registered] [added: registered] |

| [removed: Common] [added: Common] Stock, $0.25 Par [removed: Value] [added: Value] | [added: KO] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: Floating] [added: Floating] Rate Notes Due [removed: 2019] [added: 2021] | [added: KO21C] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: Floating Rate] [added: 0.000%] Notes Due [removed: 2019] [added: 2021] | [added: KO21B] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 0.000%] [added: 1.125%] Notes Due [removed: 2021] [added: 2022] | [added: KO22] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 1.125%] [added: 1.125%] Notes Due [removed: 2022] [added: 2027] | [added: KO27] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 0.75%] [added: 0.75%] Notes Due [removed: 2023] [added: 2023] | [added: KO23B] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 0.500%] [added: 0.500%] Notes Due [removed: 2024] [added: 2024] | [added: KO24] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 1.875%] [added: 1.875%] Notes Due [removed: 2026] [added: 2026] | [added: KO26] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 1.125%] [added: 0.125%] Notes Due [removed: 2027] [added: 2022] | [added: KO22B] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 1.625%] [added: 1.625%] Notes Due [removed: 2035] [added: 2035] | [added: KO35] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

| [removed: 1.100%] [added: 1.100%] Notes Due [removed: 2036] [added: 2036] | [added: KO36] | [removed: New] [added: New] York Stock [removed: Exchange] [added: Exchange] |

[removed: Securities] [added: Securities] registered pursuant to Section 12(g) of the Act: [removed: None][added: None]

Yes [removed: ý] [added: ☒] No [removed: o][added: ☐]

Yes [removed: o] [added: ☐] No [removed: ý][added: ☒]

Yes [removed: ý] [added: ☒] No [removed: o][added: ☐]

Yes [removed: ý] [added: ☒] No [removed: o][added: ☐]

| Large accelerated filer [removed: ý] | [added: ☒ |] Accelerated filer [removed: o] | [added: ☐ |] Non-accelerated filer [removed: o] | [added: ☐ |] Smaller reporting company [removed: o] | [added: ☐ |] Emerging growth company [removed: o] | [added: ☐ |]

[removed: |] If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [removed: o | | | | |]

Yes [removed: o] [added: ☐] No [removed: ý][added: ☒]

The aggregate market value of the common equity held by non-affiliates of the Registrant (assuming for these purposes, but without conceding, that all executive officers and Directors are "affiliates" of the Registrant) as of June [removed: 29, 2018,] [added: 28, 2019,] the last business day of the Registrant's most recently completed second fiscal quarter, was [removed: $184,986,760,847] [added: $215,914,430,571] (based on the closing sale price of the Registrant's Common Stock on that date as reported on the New York Stock Exchange).

The number of shares outstanding of the Registrant's Common Stock as of February [removed: 15, 2019,] [added: 19, 2020] was [removed: 4,275,340,031.][added: 4,290,276,067.]

[removed: DOCUMENTS] [added: DOCUMENTS] INCORPORATED BY [removed: REFERENCE][added: REFERENCE]

Portions of the Company's Proxy Statement for the Annual Meeting of Shareowners to be held on April [removed: 24, 2019,] [added: 22, 2020] are incorporated by reference in Part III.

[removed: THE] [added: THE] COCA-COLA COMPANY AND [removed: SUBSIDIARIES][added: SUBSIDIARIES]

[removed: Table] [added: Table] of [removed: Contents][added: Contents]

OR

COCA COLA CO

| Delaware | | 58-0628465 |

| One Coca-Cola Plaza | | |

| Atlanta, | Georgia | 30313 |

| 0.750% Notes Due 2026 | KO26C | New York Stock Exchange |

| 1.250% Notes Due 2031 | KO31 | New York Stock Exchange |

__________________________________________________

| | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | |

| [Item X.](#sA2664D9C5ABB52F38538DBE970785402) | [Information About Our Executive Officers](#) | [27](#sb80053c812894dcf972bcb7f571b9db7) |

| | [Signatures](#s0D3DE90440BC59538B605933549D4DE3) | [157](#s50d14349d7ab456b8fe5236644c1d8cd) |

10-K 1 a2018123110-k.htm 10-K

OR

___________________________________________________

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10‑K. o

| | | | | |

| --- | --- | --- | --- | --- |

| | | | | |

| [Item X.](#sA2664D9C5ABB52F38538DBE970785402) | [Executive Officers of the Company](#sA2664D9C5ABB52F38538DBE970785402) | [24](#s94D8B5FC470056DCB71980AF03D64683) |

| | [Signatures](#s0D3DE90440BC59538B605933549D4DE3) | [165](#s7E334B70146457CDB0260D80EA4204D9) |

These properties are generally included in the geographic operating segment in which they are [removed: located.][added: located, with the exception of our retail stores which are primarily included in the Global Ventures operating segment.]

The following table summarizes our principal [removed: production,] [added: production facilities,] distribution and storage [removed: facilities] [added: facilities, and retail stores] by operating segment and Corporate as of December 31, [removed: 2018:][added: 2019:]

| | Principal Concentrate and/or Syrup Plants | | | | | | Principal Beverage Manufacturing/Bottling Plants | | | | | | [added: Principal] Distribution and Storage Warehouses | | | | | [added: | Principal Retail Stores | | | | |]

| | Owned | | | Leased | | | Owned | | | Leased | | | Owned | | | Leased | | [added: | Owned | | | Leased | |]

| Europe, Middle East & Africa | 6 | | | — | | | — | | | — | | | — | | | [removed: 1] [added: 25] | | [added: | — | | | 12 | |]

| Latin America | 5 | | | — | | | — | | | — | | | 2 | | | [removed: 6] [added: 3] | | [added: | — | | | — | |]

| North America | 11 | | | — | | | 9 | | | 1 | | | — | | | [removed: 41] [added: 38] | | [added: | — | | | — | |]

| Asia Pacific | 6 | | | — | | | — | | | — | | | 2 | | | [removed: 9] [added: —] | | [added: | — | | | — | |]

| Bottling Investments | — | | | — | | | [removed: 45] [added: 87] | | | [removed: 5] [added: 7] | | | [removed: 64] [added: 101] | | | [removed: 69] [added: 97] | | [added: | — | | | — | |]

| Corporate | 3 | | | — | | | — | | | — | | | — | | | 7 | | [added: | — | | | — | |]

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | |

| Global Ventures | 1 | | | — | | | 1 | | | — | | | — | | | 1 | | | — | | | 1,718 | |

| Total | 32 | | | — | | | 97 | | | 8 | | | 105 | | | 171 | | | — | | | 1,730 | |

We also own an office and retail building at 711 Fifth Avenue in New York, New York.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | |

| Total1 | 31 | | | — | | | 54 | | | 6 | | | 68 | | | 133 | |

1 Does not include 36 owned and 2 leased principal beverage manufacturing/bottling plants and 23 owned and 30 leased distribution and

storage warehouses related to our discontinued operations.

[removed: ITEM] [added: ITEM] X.

[removed: EXECUTIVE OFFICERS OF THE COMPANY][added: The following are the executive officers of our Company as of February 24, 2020:]

[removed: Manuel Arroyo, 51,] [added: *Manuel Arroyo*, 52,] is [added: Chief Marketing Officer of the Company and] President of the Asia Pacific Group.

[removed: Francisco Crespo, 53,] [added: *Lisa Chang*, 51,] is Senior Vice President and Chief [removed: Growth] [added: People] Officer of the Company.

[removed: He] [added: Ms. Mann] was appointed [removed: President of the Company's Mexico business unit in January 2013 and served in that capacity until his appointment as] Chief [removed: Growth] [added: People] Officer and [removed: election as] [added: elected] Senior Vice President of the Company effective May 1, 2017.

[removed: James] [added: *James] L.

[removed: Dinkins, 56,] [added: Dinkins*, 57,] is Senior Vice President of the Company and President, Coca-Cola North America.

[removed: Bernhard Goepelt, 56,] [added: *Robert Long*, 62,] is Senior Vice President and [removed: General Counsel] [added: Chief Innovation Officer] of the Company.

He was elected President and Chief Operating Officer of the Company [removed: in December 2006] [added: effective August 2015] and [removed: was elected to the Board] [added: President and Chief Executive Officer] of [removed: Directors in April 2008.][added: the Company effective May 1, 2017.]

[removed: Mr. Kent was elected Chief Executive Officer of the Company in July 2008, and was elected] [added: *James Quincey*, 55, is] Chairman of the Board of Directors [added: and Chief Executive Officer] of the [removed: Company in April 2009.][added: Company.]

[removed: Nikos Koumettis, 54,] [added: *Nikos Koumettis*, 55,] is President of the Europe, Middle East and Africa Group.

[removed: Robert Long, 61,] [added: *Nancy Quan*, 53,] is Senior Vice President and Chief [removed: Innovation] [added: Technical] Officer of the Company.

[removed: Jennifer] [added: *Jennifer] K.

[removed: Mann, 46,] [added: Mann*, 47,] is Senior Vice [removed: President, Chief People Officer] [added: President of the Company] and President, Global [removed: Ventures, of the Company.][added: Ventures.]

[removed: Ms. Mann was appointed Chief People Officer and elected Senior Vice President of the Company effective May 1, 2017 and] [added: She] continued to serve as Chief of Staff for the Chief Executive Officer of the Company until October 2018.

Ms. Mann was appointed to the additional position of President, Global Ventures, [removed: of the Company] effective January 1, [added: 2019 and continued to serve as Chief People Officer until March 1,] 2019.

[removed: John Murphy, 57,] [added: *John Murphy*, 58,] is [removed: Senior] [added: Executive] Vice President and [removed: Deputy] Chief Financial Officer of the Company.

Mr. Murphy served in various finance, planning and operations roles with expanded responsibilities at [removed: Coca-Cola Japan and subsequently worked for F&N Coca-Cola Ltd., the Coca-Cola bottling partner in Singapore.]

Mr. Murphy was elected Senior Vice President and Deputy Chief Financial Officer of the Company effective January 1, [added: 2019 and served in those capacities until his election as Executive Vice President and Chief Financial Officer of the Company effective March 16,] 2019.

[removed: Beatriz Perez, 49,] [added: *Beatriz Perez*, 50,] is Senior Vice President and Chief Communications, Public Affairs, Sustainability and Marketing Assets Officer of the Company.

[removed: Nancy Quan, 52,] [added: *Barry Simpson*, 59,] is Senior Vice President and Chief [removed: Technical] [added: Information and Integrated Services] Officer of the Company.

[added: In October 2008, he] was named President of the Northwest Europe and Nordics business unit and served in that role until he was appointed President of the Europe Group in January 2013.

In December 2018, the Board of Directors elected Mr. Quincey to serve as Chairman of the Board of Directors of the Company [removed: following Mr. Kent's retirement at the Company's 2019 Annual Meeting of Shareowners, contingent on Mr. Quincey's] [added: effective upon his] re-election as a Director at the [removed: 2019] Annual Meeting of [removed: Shareowners.][added: Shareowners of the Company held on April 24, 2019.]

[removed: Alfredo Rivera, 57,] [added: *Alfredo Rivera*, 58,] is President of the Latin America Group.

Mr. Rivera joined the Company in [added: April] 1997 as a District Manager for Guatemala and El Salvador.

In [added: July] 1999, he was appointed Southeast Region Manager in the Brazil Division, serving in this role until December 2003.

[removed: Brian Smith, 63,] [added: *Brian Smith*, 64,] is President and Chief Operating Officer of the Company.

[removed: Mr. Smith served as President of the Latin America Group from January 2013 to August 2016 and as President of the] Europe, Middle East and Africa Group from August 2016 until his election as President and Chief Operating Officer of the Company effective January 1, 2019.

[removed: PART II][added: Part II]

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Mr. Arroyo was appointed Chief Marketing Officer of the Company effective January 1, 2020 and continues to serve as President of the Asia Pacific Group.

Ms. Chang joined the Company as Chief People Officer effective March 1, 2019.

Prior to joining the Company, she served as Senior Vice President and Chief Human Resources Officer for AMB Group LLC, which is the investment management and shared services arm of The Blank Family of Businesses, from 2014 through 2018.

Prior to joining AMB Group LLC, Ms. Chang served as Vice President of Human Resources for International at Equifax Inc. from 2013 through 2014, where she led human resources for all of its global locations.

Prior to Equifax Inc., Ms. Chang held various senior human resources positions in the media and entertainment industry with Turner Broadcasting System Inc. and The Weather Channel from 1998 through 2013.

Ms. Chang was elected Senior Vice President of the Company effective March 1, 2019.

Coca-Cola Japan and subsequently worked for F&N Coca-Cola Ltd., the Coca-Cola bottling partner in Singapore.

Mr. Smith served as President of the Latin America Group from January 2013 to August 2016 and as President of the

The following are the executive officers of our Company as of February 21, 2019:

Mr. Crespo first joined the Company in 1989 in Ecuador, where he held a variety of operations roles.

In 1992, Mr. Crespo was appointed Marketing Manager for Peru.

In June 1995, he became Channel Marketing Manager in Argentina, and then held the role of Operations Manager for Coca-Cola de Argentina S.A. from July 1996 until his secondment to Coca-Cola FEMSA de Buenos Aires S.A. in July 1998, where he served as Commercial Director in Argentina until June 2000.

He rejoined the Company as General Manager of Coca‑Cola de Chile S.A. in July 2000 and served in that capacity until July 2003.

Mr. Crespo served as Vice President of Operations for the Brazil business unit from August 2003 to November 2005 and as President of the South Latin business unit, where he managed operations in Argentina, Bolivia, Chile, Paraguay, Peru and Uruguay, from December 2005 to December 2012.

Mr. Goepelt joined the Company in 1992 as Legal Counsel for the German Division.

In 1997, he was appointed Legal Counsel for the Middle and Far East Group, and in 1999 was appointed Division Counsel, Southeast and West Asia Division, based in Thailand.

In 2003, Mr. Goepelt was appointed Group Counsel for the Central Europe, Eurasia and Middle East Group.

In 2005, he assumed the position of General Counsel for Japan and China, and in 2007, Mr. Goepelt was appointed General Counsel, Pacific Group.

In April 2010, he was appointed Associate General Counsel, Global Marketing, Commercial Leadership & Strategy, and in September 2010, he took on the additional responsibility of General Counsel for the Pacific Group.

In addition to his functional responsibilities, he also managed the administration of the Legal Division.

Mr. Goepelt was elected Senior Vice President and General Counsel of the Company in December 2011.

Mr. Goepelt's management responsibilities were expanded in January 2016 to include the Company's Strategic Security function.

Muhtar Kent, 66, is Chairman of the Board of Directors of the Company.

Mr. Kent joined the Company in 1978 and held a variety of marketing and operations roles throughout his career with the Company.

In 1985, he was appointed General Manager of Coca-Cola Turkey and Central Asia.

From 1989 to 1995, Mr. Kent served as President of the East Central Europe Division and Senior Vice President of Coca-Cola International.

Between 1995 and 1998, he served as Managing Director of Coca-Cola Amatil Limited-Europe, covering bottling operations in 12 countries, and from 1999 until 2005, he served as President and Chief Executive Officer of Efes Beverage Group, a diversified beverage company with Coca-Cola and beer operations across Southeast Europe, Turkey and Central Asia.

Mr. Kent rejoined the Company in May 2005 as President and Chief Operating Officer, North Asia, Eurasia and Middle East Group, an organization serving a broad and diverse region that included China, Japan and Russia.

He was appointed President, Coca-Cola International in January 2006 and was elected Executive Vice President of the Company in February 2006.

He served as President of the Company until August 2015 and as Chief Executive Officer of the Company through April 30, 2017.

In December 2018, Mr. Kent provided notice to the Company of his intention to not stand for re-election at the Company's 2019

Annual Meeting of Shareowners and to retire from the position of Chairman of the Board of Directors of the Company on the date of such meeting.

In October 2018, Mr. Murphy was elected Executive Vice President and Chief Financial Officer of the Company with effect on March 16, 2019.

James Quincey, 54, is Chief Executive Officer and a Director of the Company.

In October 2008, he

He was elected President and Chief Operating Officer of the Company in August 2015 and President and Chief Executive Officer of the Company effective May 1, 2017.

Barry Simpson, 58, is Senior Vice President and Chief Information and Integrated Services Officer of the Company.

Kathy N.

Waller, 60, is Executive Vice President and Chief Financial Officer of the Company.

Ms. Waller joined the Company in 1987 as a senior accountant in the Accounting Research Department and has served in a number of accounting and finance roles of increasing responsibility.

From July 2004 to August 2009, Ms. Waller served as Chief of Internal Audit.

In December 2005, she was elected Vice President of the Company, and in August 2009, she was elected Controller.

In August 2013, she became Vice President, Finance and Controller, assuming additional responsibilities for corporate treasury, corporate tax and finance capabilities, and served in that position until April 2014, when she was appointed Chief Financial Officer and elected Executive Vice President.

Ms. Waller assumed expanded responsibility for the Company's strategic governance areas as President, Enabling Services, on May 1, 2017 and served in that capacity until December 31, 2018.

In October 2018, the Company announced that Ms. Waller will retire from the Company on March 15, 2019.

As of February [removed: 15, 2019,] [added: 19, 2020,] there were [removed: 206,575] [added: 200,770] shareowner accounts of record.

The information under the subheading "Equity Compensation Plan Information" under the principal heading "Compensation" in the Company's definitive Proxy Statement for the Annual Meeting of Shareowners to be held on April [removed: 24, 2019] [added: 22, 2020] ("Company's [removed: 2019] [added: 2020] Proxy Statement"), to be filed with the Securities and Exchange Commission, is incorporated herein by reference.

During the year ended December 31, [removed: 2018,] [added: 2019,] no equity securities of the Company were sold by the Company that were not registered under the Securities Act of 1933, as amended.

The following table presents information with respect to purchases of common stock of the Company made during the three months ended December 31, [removed: 2018] [added: 2019] by the Company or any "affiliated purchaser" of the Company as defined in Rule 10b-18(a)(3) under the Exchange Act.

| Period | Total Number of Shares Purchased1 | | | Average Price Paid Per Share | | | | Total Number of Shares Purchased as Part of Publicly Announced Plan2 | | | Maximum Number of Shares That May Yet Be Purchased Under [removed: the] Publicly Announced [removed: Plan] [added: Plans3] | |

| 2 | On October 18, 2012, the Company publicly announced that our Board of Directors had authorized a plan ("2012 Plan") for the Company to purchase up to 500 million shares of our [removed: Company's] common stock. This column discloses the number of shares purchased pursuant to the 2012 Plan during the indicated time periods (including shares purchased pursuant to the terms of preset trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act). |

[removed: Performance Graph][added: Performance Graph]

[removed: Comparison] [added: Comparison] of Five-Year Cumulative Total Return [removed: Among][added: Among]

[removed: The] [added: The] Coca-Cola Company, the Peer Group Index and the S&P 500 [removed: Index][added: Index]

[removed: Total Return][added: Total Return]

[removed: Stock] [added: Stock] Price Plus Reinvested [removed: Dividends][added: Dividends]

[removed: ][added: ]

| December 31, | [removed: 2013 | | |] 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | [added: 2019 | | |]

| The Coca-Cola Company | $ | 100 | | $ | 105 | | $ | [removed: 111] [added: 105] | | $ | [removed: 110] [added: 120] | | $ | [removed: 126] [added: 128] | | [removed: $] [added: $] | [removed: 135] [added: 154] | |

| Peer Group Index | 100 | | | 113 | | | [removed: 128] [added: 125] | | | [removed: 142] [added: 139] | | | [removed: 158] [added: 113] | | | [removed: 128] [added: 140] | | |

The total return assumes that dividends were reinvested daily and is based on a $100 investment on December 31, [removed: 2013.][added: 2014.]

The Peer Group Index consists of the following companies: Altria Group, Inc., Archer Daniels Midland Company, [removed: B&G Foods,] [added: Beyond Meat,] Inc., [added: The Boston Beer Company, Inc.,] Brown-Forman Corporation, Bunge Limited, Campbell Soup Company, Conagra Brands, Inc., Constellation Brands, Inc., Darling Ingredients Inc., Flowers Foods, Inc., General Mills, Inc., The Hain Celestial Group, Inc., Herbalife Nutrition Ltd., The Hershey Company, Hormel Foods Corporation, Ingredion Incorporated, Jefferies Financial Group Inc., Kellogg Company, The Kraft Heinz Company, Keurig Dr Pepper Inc., Lamb Weston Holdings, Inc., Lancaster Colony Corporation, McCormick & Company, Incorporated, Molson Coors Brewing Company, Mondelēz International, Inc., Monster Beverage Corporation, National Beverage Corp., PepsiCo, Inc., Performance Food Group Company, Philip Morris International Inc., Pilgrim's Pride Corporation, Post Holdings, Inc., Seaboard Corporation, The J.M. Smucker Company, TreeHouse Foods, Inc., Tyson Foods, Inc. and US Foods Holding Corp.

| September 28, 2019 through October 25, 2019 | 955,091 | | | $ | 54.22 | | | 945,000 | | | 167,390,321 | |

| October 26, 2019 through November 22, 2019 | 3,769,586 | | | 52.92 | | | | 3,770,300 | | | 163,620,021 | |

| November 23, 2019 through December 31, 2019 | 4,131,840 | | | 54.16 | | | | 2,590,354 | | | 161,029,667 | |

| Total | 8,856,517 | | | $ | 53.64 | | | 7,305,654 | | | | |

| | |

| --- | --- |

| 3 | On February 21, 2019, the Company publicly announced that our Board of Directors had authorized a new plan ("2019 Plan") for the Company to purchase up to 150 million shares of our common stock following the completion of the 2012 Plan. This column discloses the number of shares available for purchase under the 2012 Plan and the number of shares authorized for purchase under the 2019 Plan. |

| S&P 500 Index | 100 | | | 101 | | | 114 | | | 138 | | | 132 | | | 174 | | |

In 2019, the Dow Jones Food & Beverage Index and the Peer Group Index included Beyond Meat, Inc. and The Boston Beer Company, Inc., which were not included in the indices in 2018.

Additionally, in 2019, these indices do not include B&G Foods, Inc., which was included in the indices in 2018.

| September 29, 2018 through October 26, 2018 | 2,584,881 | | | $ | 45.93 | | | 2,584,800 | | | 35,604,612 | |

| October 27, 2018 through November 23, 2018 | 4,499,050 | | | 49.25 | | | | 3,584,201 | | | 32,020,411 | |

| November 24, 2018 through December 31, 2018 | 186,525 | | | 48.48 | | | | — | | | 32,020,411 | |

| Total | 7,270,456 | | | $ | 48.05 | | | 6,169,001 | | | | |

| S&P 500 Index | 100 | | | 114 | | | 115 | | | 129 | | | 157 | | | 150 | | |

In 2018, the indices included Jefferies Financial Group Inc., Keurig Dr Pepper Inc., National Beverage Corp., Performance Food Group Company, Pilgrim's Pride Corporation and Seaboard Corporation, which were not included in the indices in 2017.

Additionally, the indices do not include Dean Foods Company, Dr Pepper Snapple Group, Inc., Leucadia National Corporation, Pinnacle Foods Inc. and Snyder's-Lance, Inc., which were included in the indices in 2017.

| Year Ended December 31, | [removed: 2018] [added: 2019] | | | [added: 2018] | [removed: 2017] | | [added: 2017] | | [removed: 2016] | [added: 2016] | | | 2015 | | | [removed: | 2014 | | |]

| (In millions except per share data) | | | | | | | | | | | | | | | | [removed: | | | |]

| [removed: SUMMARY OF OPERATIONS | | | |] [added: Summary of Operations] | | | | | | | | | | | | | | | |

| Net operating revenues | [removed: $ | 31,856] [added: $] | [added: 37,266] | | $ | [removed: 35,410 |] [added: 34,300] | | $ | [removed: 41,863 |] [added: 36,212] | | $ | [removed: 44,294 |] [added: 41,863] | | $ | [removed: 45,998] [added: 44,294] | |

| Net income attributable to shareowners of The Coca-Cola Company | [removed: 6,434] [added: 8,920] | | | [added: 6,434] | [removed: 1,248] | | [added: 1,248] | | [removed: 6,527] | [added: 6,527] | | | 7,351 | | | [removed: | 7,098 | | |]

| [removed: PER SHARE DATA | | | |] [added: Per Share Data] | | | | | | | | | | | | | | | |

| Basic net income | [removed: 1.51 | | | | 0.29] [added: $] | [added: 2.09] | | [added: $] | 1.51 | | [added: $] | [added: 0.29] | [removed: 1.69] | [added: $] | [added: 1.51] | | [removed: 1.62] [added: $] | [added: 1.69] | |

| Diluted net income | [removed: 1.50] [added: 2.07] | | | [added: 1.50] | [removed: 0.29] | | [added: 0.29] | | [removed: 1.49] | [added: 1.49] | | | 1.67 | | | [removed: | 1.60 | | |]

| Cash dividends | [removed: 1.56] [added: 1.60] | | | [added: 1.56] | [removed: 1.48] | | [added: 1.48] | | [removed: 1.40] | [added: 1.40] | | | 1.32 | | | [removed: | 1.22 | | |]

| [removed: BALANCE SHEET DATA | | | |] [added: Balance Sheet Data] | | | | | | | | | | | | | | | |

| Total assets | [added: $ | 86,381 | |] $ | 83,216 | | [removed: |] $ | 87,896 | | [removed: |] $ | 87,270 | | [removed: |] $ | 89,996 | | [removed: | $ | 91,968 | |]

| Long-term debt | [removed: 25,364] [added: 27,516] | | | [added: 25,376] | [removed: 31,182] | | [added: 31,202] | | [removed: 29,684] | [added: 29,684] | | | 28,311 | | | [removed: | 19,010 | | |]

| | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | |

| Consolidated net income | 8,985 | | | 6,476 | | | 1,283 | | | 6,550 | | | 7,366 | | |

| | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | |

| Net income from continuing operations | 6,727 | | | | 1,182 | | | | 6,550 | | | | 7,366 | | | | 7,124 | | |

| Basic net income from continuing operations1 | $ | 1.58 | | | $ | 0.28 | | | $ | 1.51 | | | $ | 1.69 | | | $ | 1.62 | |

| Diluted net income from continuing operations1 | 1.57 | | | | 0.27 | | | | 1.49 | | | | 1.67 | | | | 1.60 | | |

| | |

| --- | --- |

| 1 | Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests. |

[removed: TABLE] [added: TABLE] OF [removed: CONTENTS][added: CONTENTS]

| | [removed: Page] [added: Page] |

[removed: | [Consolidated Statements of Income](#s66577CA06E3D52B98D1181FBF034E06C) | [71](#s66577CA06E3D52B98D1181FBF034E06C) |][added: CONSOLIDATED STATEMENTS OF INCOME]

[removed: | [Consolidated Statements of Comprehensive Income](#sE1C27BF430A957E2A479A345219C9D71) | [72](#sE1C27BF430A957E2A479A345219C9D71) |][added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME]

[removed: | [Consolidated Balance Sheets](#sFEA0C69C6A405106ABB5D369B050933D) | [73](#sFEA0C69C6A405106ABB5D369B050933D) |][added: CONSOLIDATED BALANCE SHEETS]

[removed: | [Consolidated Statements of Cash Flows](#s5E435547F7CC57658ACFDC75039A993B) | [74](#s5E435547F7CC57658ACFDC75039A993B) |][added: CONSOLIDATED STATEMENTS OF CASH FLOWS]

[removed: | [Consolidated Statements of Shareowners' Equity](#s69D32002743350F9926464D7AE23ACD6) | [75](#s69D32002743350F9926464D7AE23ACD6) |][added: CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY]

[removed: | [Notes to Consolidated Financial Statements](#s538F1A60E2ED58CF8DA04336B72284F4) | [76](#s538F1A60E2ED58CF8DA04336B72284F4) |][added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS]

[removed: | [Report of Management](#s7C3A36D14E985EE7AA362787E0016671) | [146](#s7C3A36D14E985EE7AA362787E0016671) |][added: REPORT OF MANAGEMENT]

[removed: | [Report] [added: Report] of Independent Registered Public Accounting [removed: Firm](#s66E9CA3F62425A86A9311C9CED298C7B) | [148](#s66E9CA3F62425A86A9311C9CED298C7B) |][added: Firm]

| [Report of Independent Registered Public Accounting Firm on Internal Control Over Financial [removed: Reporting](#sB24D5726C914519A93DC4D8EDDC0B555)] [added: Reporting](#s9ED11966E52C5FAB9E02EF560C6E6FDE)] | [removed: [149](#sB24D5726C914519A93DC4D8EDDC0B555)] [added: [142](#s9ED11966E52C5FAB9E02EF560C6E6FDE)] |

[removed: | [Quarterly] [added: Quarterly] Data [removed: (Unaudited)](#sD756CC21820E527EB176767B9C24D1FA) | [150](#sD756CC21820E527EB176767B9C24D1FA) |][added: (Unaudited)]

[removed: THE] [added: THE] COCA-COLA COMPANY AND [removed: SUBSIDIARIES][added: SUBSIDIARIES]

[removed: CONSOLIDATED STATEMENTS OF INCOME][added: | [Consolidated Statements of Income](#sA98370EFD2B5523FB33EAB891D7A56FD) | [68](#sA98370EFD2B5523FB33EAB891D7A56FD) |]

| Year Ended December 31, | [removed: 2018 | |] [added: 2019] | | [removed: 2017] | [added: 2018] | | | [removed: 2016] [added: 2017] | | |

[removed: |] (In millions except per share data) [removed: | | | | | | | | | | | |]

| [removed: NET OPERATING REVENUES] [added: Net operating revenues:] | [removed: $] | [removed: 31,856] | | | [removed: $] | [removed: 35,410] | | | [removed: $] | [removed: 41,863] | | [added: | | | | | | | | | | | | | | | | | | | | | | | | |]

| [added: Commodity contracts |] Selling, general and administrative expenses | [removed: 10,307] | [added: —] | | | [removed: 12,654] | [added: —] | | | [removed: 15,370] | [added: 1] | | [added: |]

| Other operating charges | [removed: 1,079 | |] [added: 458] | | [removed: 1,902] | [added: 1,079] | | | [removed: 1,371] [added: 1,902] | | |

[removed: | Interest expense | 919 | | | | 841 | | | | 733 | | |][added: *Interest Expense*]

| Equity income (loss) — net | [removed: 1,008 | |] [added: 1,049] | | [removed: 1,071] | [added: 1,008] | | | [removed: 835] [added: 1,072] | | |

| Other income (loss) — net | [removed: (1,121 |] [added: 34] | [removed: )] | | [removed: (1,764] [added: (1,674] | | ) | [removed: | (1,265] [added: (1,763] | | ) |

| [removed: CONSOLIDATED NET INCOME | 6,476 |] [added: Consolidated Net Income] | [added: 8,985] | | [removed: 1,283] | [added: 6,476] | | | [removed: 6,550] [added: 1,283] | | |

| Less: Net income [added: (loss)] attributable to noncontrolling interests | [removed: 42 | |] [added: 65] | | [removed: 35] | [added: 42] | | | [removed: 23] [added: 35] | | |

| [removed: NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $] [added: Net Income Attributable to Shareowners of The Coca-Cola Company] | [removed: 6,434] [added: $] | [added: 8,920] | | $ | [removed: 1,248 |] [added: 6,434] | | $ | [removed: 6,527] [added: 1,248] | |

| [removed: Basic net income per share from continuing operations1 | $] [added: Basic Net Income Per Share1] | [removed: 1.58] [added: $] | [added: 2.09] | | $ | [removed: 0.28 |] [added: 1.51] | | $ | [removed: 1.51] [added: 0.29] | |

[removed: | BASIC NET INCOME PER SHARE | $ | 1.51 | | | $ | 0.29 | | 3 | $ | 1.51 | |][added: *Net Income Per Share*]

| [removed: DILUTED NET INCOME PER SHARE | $] [added: Diluted Net Income Per Share1] | [removed: 1.50] [added: $] | [added: 2.07] | | $ | [removed: 0.29 |] [added: 1.50] | | $ | [removed: 1.49] [added: 0.29] | |

| [removed: AVERAGE SHARES OUTSTANDING] [added: Average Shares Outstanding] — [removed: BASIC | 4,259 |] [added: Basic] | [added: 4,276] | | [removed: 4,272] | [added: 4,259] | | | [removed: 4,317] [added: 4,272] | | |

| Effect of dilutive securities | [removed: 40 | |] [added: 38] | | [removed: 52] | [added: 40] | | | [removed: 50] [added: 52] | | |

| [removed: AVERAGE SHARES OUTSTANDING] [added: Average Shares Outstanding] — [removed: DILUTED | 4,299 |] [added: Diluted] | [added: 4,314] | | [removed: 4,324] | [added: 4,299] | | | [removed: 4,367] [added: 4,324] | | |

[removed: THE] [added: THE] COCA-COLA COMPANY AND [removed: SUBSIDIARIES][added: SUBSIDIARIES]

[removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME][added: | [Consolidated Statements of Comprehensive Income](#sDFFFA15BC5C35EF7B24F3EEB5D2667DA) | [69](#sDFFFA15BC5C35EF7B24F3EEB5D2667DA) |]

| Year Ended December 31, | [removed: 2018 | |] [added: 2019] | | [removed: 2017] | [added: 2018] | | | [removed: 2016] [added: 2017] | | |

[removed: |] (In millions) [removed: | | | | | | | | | | | |]

| [removed: CONSOLIDATED NET INCOME | $] [added: Consolidated Net Income] | [removed: 6,476] [added: $] | [added: 8,985] | | $ | [removed: 1,283 |] [added: 6,476] | | $ | [removed: 6,550] [added: 1,283] | |

| Other comprehensive income: | | | | | | | | | | [removed: | |]

| Net foreign currency translation adjustments | [removed: (2,035 | | )] [added: 74] | | [removed: 861] | [added: (2,035] | | [added: )] | [removed: (626] [added: 861] | | [removed: )] |

| Net gains (losses) on derivatives | [removed: (7 |] [added: (54] | [removed: )] | [added: )] | [removed: (433] [added: (7] | | ) | [removed: | (382] [added: (433] | | ) |

| Net [added: change in] unrealized gains (losses) on available-for-sale securities | [removed: (34 | | )] [added: 18] | | [removed: 188] | [added: (34] | | [added: )] | [removed: 17] [added: 188] | | |

| Cost of goods sold | 14,619 | | | 13,067 | | | 13,721 | | |

| Gross Profit | 22,647 | | | 21,233 | | | 22,491 | | |

| Operating Income | 10,086 | | | 9,152 | | | 7,755 | | |

| Interest income | 563 | | | 689 | | | 679 | | |

| Interest expense | 946 | | | 950 | | | 853 | | |

| Income Before Income Taxes | 10,786 | | | 8,225 | | | 6,890 | | |

| Income taxes | 1,801 | | | 1,749 | | | 5,607 | | |

| Inventories | 3,379 | | | 3,071 | | |

| Goodwill | 16,764 | | | 14,109 | | |

| Deferred income taxes | (280 | | ) | (413 | | ) | (1,252 | | ) |

| Other items | 504 | | | 699 | | | (252 | | ) |

| Issuances of debt | 23,009 | | | 27,605 | | | 29,926 | | |

| Payments of debt | (24,850 | | ) | (30,600 | | ) | (28,871 | | ) |

| Acquisition of interests held by noncontrolling owners | (84 | | ) | — | | | — | | |

The number of stock option awards excluded from the computation of diluted net income per share in 2019 was insignificant.

Effective January 1, 2019, we adopted Accounting Standards Codification 842, *Leases* ("ASC 842").

We determine if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances.

We are the lessee in a lease contract when we obtain the right to control the asset.

Operating lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.

Leases with a lease term of 12 months or less at inception are not recorded on our consolidated balance sheet and are expensed on a straight-line basis over the lease term in our consolidated statement of income.

We determine the lease term by assuming the exercise of renewal options that are reasonably certain.

As most of our leases do not provide an implicit interest rate, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.

When our contracts contain lease and non-lease components, we account for both components as a single lease component.

We have various arrangements for certain fountain equipment under which we are the lessor.

These leases meet the criteria for operating lease classification.

Lease income associated with these leases is not material.

Our Global Ventures operating segment includes the results of our Costa Limited ("Costa"), innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster Beverage Corporation ("Monster"), each of which is its own reporting unit.

Income tax expense includes U.S., state, local and international income taxes.

We adopted ASC 842 using the modified retrospective method and utilized the optional transition method under which we continue to apply the legacy guidance in ASC 840, *Leases*, including its disclosure requirements, in the comparative periods presented.

In addition, we elected the package of practical expedients permitted under the transition guidance which permits us to carry forward the historical lease classification, among other things.

As a result of the adoption, our operating lease ROU assets and operating lease liabilities were $1,372 million and $1,392 million, respectively, as of December 31, 2019.

We recognized a cumulative effect adjustment to decrease the opening balance of reinvested earnings as of January 1, 2019 by $12 million, net of tax.

We adopted ASU 2018-02 effective January 1, 2019.

We recognized a cumulative effect adjustment to increase the opening balance of reinvested earnings as of January 1, 2019 by $558 million related to the effect that the change in the income tax rate had on the gross deferred tax amounts of items remaining in AOCI.

be included in net income.

During 2018, the Company also acquired controlling interests in bottling operations in Zambia and Botswana.

*Costa Limited*

We believe this acquisition will allow us to increase our presence in the hot beverage market as Costa has a scalable platform across multiple formats and channels, including opportunities to introduce ready-to-drink products.

As of December 31, 2019, $2.4 billion of the purchase price was preliminarily allocated to the Costa trademark and $2.5 billion was preliminarily allocated to goodwill.

The goodwill recognized as part of this acquisition is primarily related to synergistic value created from the opportunity for additional expansion as well as our ability to market and distribute Costa in ready-to-drink form throughout our bottling system.

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| Cost of goods sold | 11,770 | | | | 13,255 | | | | 16,465 | | |

| GROSS PROFIT | 20,086 | | | | 22,155 | | | | 25,398 | | |

| OPERATING INCOME | 8,700 | | | | 7,599 | | | | 8,657 | | |

| Interest income | 682 | | | | 677 | | | | 642 | | |

| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 8,350 | | | | 6,742 | | | | 8,136 | | |

| Income taxes from continuing operations | 1,623 | | | | 5,560 | | | | 1,586 | | |

| NET INCOME FROM CONTINUING OPERATIONS | 6,727 | | | | 1,182 | | | | 6,550 | | |

| Income (loss) from discontinued operations (net of income taxes of $126, $47 and $0, respectively) | (251 | | ) | | 101 | | | | — | | |

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| Basic net income (loss) per share from discontinued operations2 | (0.07 | | ) | | 0.02 | | | | — | | |

| Diluted net income per share from continuing operations1 | $ | 1.57 | | | $ | 0.27 | | | $ | 1.49 | |

| Diluted net income (loss) per share from discontinued operations2 | (0.07 | | ) | | 0.02 | | | | — | | |

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| 1 | Calculated based on net income from continuing operations less net income from continuing operations attributable to noncontrolling interests. |

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| --- | --- |

| 2 | Calculated based on net income (loss) from discontinued operations less net income from discontinued operations attributable to noncontrolling interests. |

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| 3 | Per share amounts do not add due to rounding. |

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| Inventories | 2,766 | | | | 2,655 | | |

| Assets held for sale — discontinued operations | 6,546 | | | | 7,329 | | |

| GOODWILL | 10,263 | | | | 9,401 | | |

| Liabilities held for sale | — | | | | 37 | | |

| Liabilities held for sale — discontinued operations | 1,722 | | | | 1,496 | | |

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[removed: Evaluation] [added: Evaluation] of Disclosure Controls and [removed: Procedures][added: Procedures]

Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of December 31, [removed: 2018.][added: 2019.]

[removed: Report] [added: Report] of Management on Internal Control Over Financial Reporting and Attestation Report of Independent Registered Public Accounting [removed: Firm][added: Firm]

The report of management on our internal control over financial reporting as of December 31, [removed: 2018] [added: 2019] and the attestation report of our independent registered public accounting firm on our internal control over financial reporting are set forth in Part II, "Item 8.

[removed: Changes] [added: Changes] in Internal Control Over Financial [removed: Reporting][added: Reporting]

There have been no changes in the Company's internal control over financial reporting during the quarter ended December 31, [removed: 2018] [added: 2019] that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.