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Bottling Partner or Bottler: Businesses generally, but not always, independently owned that buy concentrates or syrups from the Company, convert them into finished packaged products and sell them to customers.
The Coca-Cola System: The Company and its bottling partners.
Concentrate or Beverage Base: Material manufactured from Company-defined ingredients and sold to bottlers for use in the preparation of finished beverages through the addition of sweetener and/or water.
Consolidated Bottling Operation (CBO): Bottler in which The Coca-Cola Company holds controlling ownership. The bottler's financial results are consolidated into the Company's financial statements.
Consumer: Person who consumes Company products.
Cost of Capital: Blended cost of equity and borrowed funds used to invest in operating capital required for business.
Customer: Retail outlet, restaurant or other operation that sells or serves Company products directly to consumers.
Derivatives: Contracts or agreements, the value of which is linked to interest rates, exchange rates, prices of securities, or financial or commodity indices. The Company uses derivatives to reduce its exposure to adverse fluctuations in interest and exchange rates and other market risks.
Dividend Payout Ratio: Calculated by dividing cash dividends on common stock by net income available to common share owners.
Economic Profit: Income from continuing operations, after taxes, excluding interest, in excess of a computed capital charge for average operating capital employed.
Economic Value Added: Growth in economic profit from year to year.
Fountain: System used by retail outlets to dispense product into cups or glasses for immediate consumption.
Free Cash Flow: Cash provided by operations less cash used in investing activities. The Company uses free cash flow along with borrowings to pay dividends and make share repurchases.
Gallon Sales: Unit of measurement for concentrates (expressed in equivalent gallons of syrup) and syrups sold by the Company to its bottling partners or customers.
Gross Margin: Calculated by dividing gross profit by net operating revenues.
Interest Coverage Ratio: Income before taxes, excluding unusual items, plus interest expense divided by the sum of interest expense and capitalized interest.
KO: The ticker symbol for stock of The Coca-Cola Company.
Market: Geographic area in which the Company and its bottling partners do business, often defined by national boundaries.
The Minute Maid Company: Company operating group responsible for producing, marketing and distributing juice and juice-drink products.
Net Debt and Net Capital: Debt and capital in excess of cash, cash equivalents and marketable securities not required for operations and certain temporary bottling investments.
Operating Margin: Calculated by dividing operating income by net operating revenues.
Per Capita Consumption: Average number of 8-ounce servings consumed per person, per year in a specific market. Company per capita consumption is calculated by multiplying our unit case volume by 24, and dividing by the population.
Return on Capital: Calculated by dividing income from continuing operations before changes in accounting principles, adjusted for interest expense by average total capital.
Return on Common Equity: Calculated by dividing income from continuing operations before changes in accounting principles, less preferred stock dividends by average common share-owners' equity.
Serving: Eight U.S. fluid ounces of a beverage.
Share of Sales: Company's unit case volume as a percentage of the total unit case volume of the soft-drink category of the commercial beverages industry.
Soft Drink: Nonalcoholic carbonated beverage containing flavorings and sweeteners. Excludes flavored waters and carbonated or noncarbonated teas, coffees and sports drinks.
Syrup: Concentrate mixed with sweetener and water, sold to bottlers and customers who add carbonated water to produce finished soft drinks.
Total Capital: Equals share-owners' equity plus interest-bearing debt.
Total Market Value of Common Stock: Stock price at year end multiplied by the number of shares outstanding at year end.
Unit Case: Unit of measurement equal to 24 eight-U.S.-fluid- ounce servings.
Unit Case Volume: Number of unit cases sold by bottling partners to customers; considered an excellent indicator of the underlying strength of soft-drink sales in a particular market. Company unit case volume primarily includes products reported as gallon sales and other key products owned by our bottlers. Excludes products distributed by The Minute Maid Company.
Environmental Statement: The Coca-Cola Company is dedicated to environmental excellence. While our environmental impact is small, we are committed to managing that impact in a positive manner just as we would any other business issue. One of the ways we do this is through The Coca-Cola Environmental Management System. Compliance, waste minimization, pollution prevention and continuous improvement and identification of cost savings are all hallmarks of TCCEMS. We have achieved significant progress in areas such as source reduction, recovery and recycling, water and energy conservation and wastewater quality. We also help support an extensive network of environmental organizations, including Keep America Beautiful, Keep Australia Beautiful, The Nature Conservancy, The Georgia Conservancy, Keep Britain Tidy, South Africa's Collect a Can program, the Brazilian Business Commitment for Recycling and The Center for Marine Conservation. These efforts are helping us protect and advance our business through continued environmental leadership.
Equal Opportunity Policy: The Coca-Cola Company and its subsidiaries employ nearly 29,000 people worldwide (down from nearly 30,000 in 1997, due primarily to sales of certain Company-owned bottling operations). We maintain a long-standing commitment to equal opportunity, affirmative action and valuing the diversity of our employees, share owners, customers and consumers. The Company strives to create a working environment free of discrimination and harassment with respect to race, sex, color, national origin, religion, age, sexual orientation, disability, being a special disabled veteran or being a veteran of the Vietnam era, as well as to make reasonable accommodations in the employment of qualified individuals with disabilities. The Company maintains ongoing contact with labor and employee associations to develop relationships that foster responsive and mutually beneficial discussions pertaining to labor issues. These associations have provided a mechanism for positive industrial relations. In addition, we provide fair marketing opportunities to all suppliers and maintain programs to increase transactions with firms that are owned and operated by minorities and women.
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