enterprise. In the 21st century, consumers will increasingly demand that businesses play a positive role in society. Likewise, the economic and environmental challenges facing our planet will require new partnerships. Our business has always prospered when we are seen—in perception and in reality—as part of the local fabric of the communities in which we operate. I believe we are well on our way. 

The Coca-Cola Company has stepped up as a leader in areas that are relevant to our business and vital to its sustained growth. We formed new partnerships with nongovernmental organizations and set new goals around water stewardship, sustainable packaging, energy use and climate protection. 

I know that the full return on these investments will only emerge over the long-term. However, we already see financial savings, strong engagement from our people and a new interest in your Company. 

In closing, I wish to offer my thanks to my fellow Directors, to Muhtar, to our people, customers, consumers, bottling partners and you, our shareowners. I leave to Muhtar a Company whose greatest days, I believe, lie ahead. I will enjoy those days as an enthusiastic shareowner and, as 

I pass the torch, I look forward to sharing the fruits of Muhtar’s leadership with you. 



MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview 

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand The Coca- Cola Company, our operations and our present business environment. MD&A is provided as a supplement to—and should be read in conjunction with—our consolidated financial statements and the accompanying notes thereto contained in “Item 8. Financial Statements and Supplementary Data” of this report. This overview summarizes the MD&A, which includes the following sections: 

Our Business—a general description of our business and the nonalcoholic beverages segment of the commercial beverages industry, our objective, our strategic priorities, our core capabilities, and challenges and risks of our business. 

Critical Accounting Policies and Estimates—a discussion of accounting policies that require critical judgments and estimates. 

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 in the MD&A on a consolidated basis. 

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

Our Business 

General 

We are the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Along with Coca-Cola, which is recognized as the world’s most valuable brand, we market four of the world’s top five nonalcoholic sparkling brands, including Diet Coke, Fanta and