8-K/AEarnings & ResultsExhibits & Filings

COCA COLA CO 8-K/A Report, Financial Results (Feb 26, 2010)

Filed February 26, 2010For Securities:KO

Summary

This 8-K/A filing from The Coca-Cola Company serves as an amendment to a previous 8-K filed on February 9, 2010, which announced preliminary financial results for Q4 and FY 2009. The primary purpose of this amendment is to correct a misclassification of $2,130 million in bank time deposits. These deposits, with maturities between three months and one year, were initially categorized as cash and cash equivalents but have now been reclassified to short-term investments. This reclassification impacts the balance sheet by reducing 'Cash and cash equivalents' and adding 'Short-term investments,' and it also affects the cash flow statement by reallocating funds within investing activities. While this is a significant correction, the company explicitly states that the core financial results presented in the original press release, including income statements and non-GAAP reconciliations, remain unaffected. Investors should note this adjustment for a more accurate view of the company's liquidity and investment portfolio.

Key Highlights

  • 1Amendment to a prior 8-K filing dated February 9, 2010, concerning preliminary Q4 and FY 2009 results.
  • 2Correction of a misclassification of $2.130 billion in bank time deposits.
  • 3The misclassified funds were reclassified from 'Cash and cash equivalents' to 'Short-term investments'.
  • 4The reclassification impacts the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows.
  • 5On the Balance Sheet, 'Cash and cash equivalents' decreases by $2.130 billion, and 'Short-term investments' increases by the same amount as of December 31, 2009.
  • 6On the Cash Flow Statement, the change is reflected in 'Purchases of other investments' within Investing Activities for the year ended December 31, 2009.
  • 7The company confirms that the core operating results, income statements, and non-GAAP reconciliations from the original press release remain unchanged.

Frequently Asked Questions

This filing is an amendment to correct a misclassification of $2,130 million in bank time deposits. These funds were initially reported as cash and cash equivalents but should have been classified as short-term investments due to their maturity terms (between three months and one year).

The reclassification reduces the reported 'Cash and cash equivalents' by $2,130 million and increases 'Short-term investments' by the same amount on the balance sheet as of December 31, 2009. The total of 'Cash, Cash Equivalents and Short-Term Investments' is now reported as $9,151 million for December 31, 2009.

No, The Coca-Cola Company explicitly states that this reclassification does not affect the company's Condensed Consolidated Statements of Income, the Operating Segments table, or the Reconciliation of GAAP and non-GAAP Financial Measures as presented in the original press release.

This adjustment provides a more precise view of the company's liquidity. While the total amount of readily available funds is similar, separating short-term investments from immediate cash provides better insight into the company's investment strategy and the composition of its liquid assets.