FORM 10-Q

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THE COCA-COLA COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2012. When used in these notes, the terms "The Coca-Cola Company," "Company," "we," "us" or "our" mean The Coca-Cola Company and all entities included in our condensed consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 29, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. Sales of our nonalcoholic ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. Each of our interim reporting periods, other than the fourth interim reporting period, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The first quarter of 2013 and 2012 ended on March 29, 2013, and March 30, 2012, respectively. Our fourth interim reporting period and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. Effective January 1, 2013, the Company transferred our India and South West Asia business unit from the Eurasia and Africa operating segment to the Pacific operating segment. Accordingly, these and certain other amounts in the prior year's condensed consolidated financial statements and notes have been revised to conform to the current year presentation. Advertising Costs The Company's accounting policy related to advertising costs for annual reporting purposes, as disclosed in Note 1 of our 2012 Annual Report on Form 10-K, is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. NOTE 2: ACQUISITIONS AND DIVESTITURES Acquisitions During the three months ended March 29, 2013, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $28 million, none of which were individually significant. During the three months ended March 30, 2012, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $120 million, which included our acquisition of bottling operations in Vietnam and Cambodia. None of the Company's acquisitions were individually significant. Divestitures During the three months ended March 29, 2013, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $690 million, which primarily included the sale of a majority ownership interest in our previously consolidated bottling operations in the Philippines ("Philippine bottling operations") to Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), an equity method investee. The Company now accounts for our ownership interest in the 6
Philippine bottling operations as an equity method investment, which we remeasured to fair value taking into consideration the sale price of the majority ownership interest. Coca-Cola FEMSA has an option to purchase our remaining ownership interest in the Philippine bottling operations at any time during the seven years following closing at the initial purchase price plus a defined return. Coca-Cola FEMSA also has an option exercisable during the sixth year after closing to sell its ownership interest back to the Company at a price not to exceed the initial purchase price. During the three months ended March 30, 2012, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 11 million, none of which were individually significant. Assets and Liabilities Held for Sale On December 13, 2012, the Company and Coca-Cola FEMSA executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. This transaction was completed on January 25, 2013. As of December 31, 2012, our Philippine bottling operations met the criteria to be classified as held for sale, and we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon purchase price. The Company recorded a total loss of $ 107 million, primarily during the fourth quarter of 2012, on the sale of our Philippine bottling operations. Refer to the table below for a detail of our Philippine bottling assets and liabilities that were classified as held for sale as of December 31, 2012. On December 17, 2012, the Company entered into an agreement with several parties which will result in the merger of our consolidated bottling operations in Brazil ("Brazilian bottling operations") with an independent bottler in Brazil. Upon completion of the transaction, we will deconsolidate our Brazilian bottling operations in exchange for cash and a minority ownership interest in the newly combined entity. As a result, our Brazilian bottling operations met the criteria to be classified as held for sale. We were not required to record their assets and liabilities at fair value less any costs to sell because their fair value exceeded our carrying value as of March 29, 2013, and December 31, 2012. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our condensed consolidated balance sheets as of March 29, 2013, and December 31, 2012 (in millions): March 29, 2013 December 31, 2012 Brazilian Bottling Operations Brazilian Bottling Operations Philippine Bottling Operations Total Bottling Operations Held for Sale as of December 31, 2012 Cash, cash equivalents and short-term investments $ 85 $ 45 $ 133 $ 178 Trade accounts receivable, less allowances 62 88 108 196 Inventories 92 85 187 272 Prepaid expenses and other assets 134 174 223 397 Other assets 182 128 7 135 Property, plant and equipment — net 464 419 841 1,260 Bottlers' franchise rights with indefinite lives 141 130 341 471 Goodwill 23 22 148 170 Other intangible assets — 1 — 1 Allowance for reduction of assets held for sale — — (107) (107) Total assets $ 1,183 $ 1,092 $ 1,881 $ 2,973 Accounts payable and accrued expenses $ 140 $ 157 $ 241 $ 398 Loans and notes payable 15 6 — 6 Current maturities of long-term debt 32 28 — 28 Accrued income taxes 1 4 (4) — Long-term debt 152 147 — 147 Other liabilities 85 75 20 95 Deferred income taxes 21 20 102 122 Total liabilities $ 446 $ 437 $ 359 $ 796 We determined that our Philippine and Brazilian bottling operations did not meet the criteria to be classified as discontinued operations, primarily due to the continued significant involvement we anticipate having in these operations following each transaction. 7
Page 1 and 2: UNITED STATES SECURITIES AND EXCHAN
Page 3 and 4: FORWARD-LOOKING STATEMENTS This rep
Page 5 and 6: THE COCA-COLA COMPANY AND SUBSIDIAR
Page 7: THE COCA-COLA COMPANY AND SUBSIDIAR
Page 11 and 12: The sale and/or maturity of availab
Page 13 and 14: above. The amounts exchanged are ca
Page 15 and 16: The following table presents the pr
Page 17 and 18: The following table presents the pr
Page 19 and 20: Risk Management Programs The Compan
Page 21 and 22: NOTE 9: CHANGES IN EQUITY The follo
Page 23 and 24: NOTE 12: PENSION AND OTHER POSTRETI
Page 25 and 26: Included in the fair value of deriv
Page 27 and 28: • Income (loss) before income tax
Page 29 and 30: Intangible assets acquired in recen
Page 31 and 32: inventory practices, the number of
Page 33 and 34: Net Operating Revenues Three Months
Page 35 and 36: As of March 29, 2013, we had $693 m
Page 37 and 38: • During the three months ended M
Page 39 and 40: At the end of each interim period,
Page 41 and 42: isk and diversify our assets, the C
Page 43 and 44: Foreign Exchange Our international
Page 45 and 46: • Liabilities held for sale decre
Page 47 and 48: Item 1A. Risk Factors In addition t
Page 49 and 50: 10.2 The Coca-Cola Company 2008 Sto
Page 51 and 52: EXHIBIT INDEX Exhibit No. (With reg
Page 53 and 54: FIRST: The name of this corporation
Page 55 and 56: manufacture under, or grant license
Page 57 and 58: vote of the holders of the majority
Page 59 and 60:
corporation so interested; (2) by v
Page 61 and 62:
CERTIFICATE OF AMENDMENT OF CERTIFI
Page 63 and 64:
AMENDMENT THREE TO THE COCA-COLA RE
Page 65 and 66:
AMENDMENT TWO TO THE THE COCA-COLA
Page 67 and 68:
CERTIFICATIONS I, Muhtar Kent, Chai
Page 69:
CERTIFICATION PURSUANT TO 18 U.S.C.
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FORM 10-Q

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