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PRE-MKT · 04:35 ET
Market ClerkRecap
Mon Oct 26 · pre-market1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

COKE

Coca-Cola Consolidated, Inc.
NASDAQ · CONSUMER STAPLES · BOTTLED & CANNED SOFT DRINKS & CARBONATED WATERS
203.31
−11.62 −5.41%
USD · close Oct 23
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Work order
59
WATCH · shorts 59
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $1.5BP/E —DIV YIELD —FCF YIELD 44.36%REV TTM $7.7B +10.7%NET INCOME $550M −6.1%NET DEBT $2.3B52W 127.97 – 216.91SEC XBRL · TTM TO Invalid Date

How COKE rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
43%
of sentences unchanged
Added
296
new sentences
Dropped
290
sentences removed
Length
+175
words, now 29,204

New in FY2025

  • The Company is subject to interest rate volatility with regard to existing issuances of debt, including its revolving credit facility and the Term Loan Facilities.
  • The Company had outstanding borrowings under the Term Loan Facilities in 2025 totaling $1.35 billion.
  • Based on the Company’s variable rate debt outstanding as of December 31, 2025, we estimate a 1% increase in interest rates would increase annual interest expense by $13.5 million.
  • As of December 31, 2024, the Company did not have any outstanding borrowings on variable rate debt and, as such, estimated a 1% increase in interest rates would have had no impact on interest expense.
  • The Company estimates a 10-basis point change in the underlying risk-free interest rate used to estimate the Company’s WACC would result in a change of approximately $7 million to the Company’s acquisition related contingent consideration liability.
  • The Company estimates a 10% increase in the market prices of its key commodities, including aluminum, PET resin and high-fructose corn syrup, and excluding concentrate, over the current market prices would cumulatively increase costs during the next 12 months by approximately $35 million to $40 million assuming no change in volume.
  • The Company periodically uses commodity derivative instruments in the management of this risk, and estimates a 10% decrease in the underlying commodity prices would have decreased the fair value of our commodity derivative instruments by approximately $4 million as of December 31, 2025.
  • The annual rate of inflation in the United States, as measured by year-over-year changes in the Consumer Price Index, was 2.7% in 2025, 2.9% in 2024 and 3.4% in 2023.
  • CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year (in thousands, except per share data) 2025 2024 2023 Net sales $ 7,228,055 $ 6,899,716 $ 6,653,858 Cost of sales 4,355,693 4,146,537 4,055,147 Gross profit 2,872,362 2,753,179 2,598,711 Selling, delivery and administrative expenses 1,921,706 1,832,829 1,764,260 Income from operations 950,656 920,350 834,451 Interest expense (income), net 42,678 1,848 ( 918 ) Mark-to-market on acquisition related contingent consideration 131,901 59,166 159,354 Pension plan settlement expense — — 112,796 Other expense, net 3,159 2,682 5,738 Income before taxes 772,918 856,654 557,481 Income tax expense 202,336 223,529 149,106 Net income $ 570,582 $ 633,125 $ 408,375 Basic net income per share: Common Stock $ 6.82 $ 7.01 $ 4.36 Weighted average number of Common Stock shares outstanding 73,658 80,348 83,690 Class B Common Stock $ 6.78 $ 6.95 $ 4.36 Weighted average number of Class B Common Stock shares outstanding 10,047 10,047 10,047 Diluted net income per share: Common Stock $ 6.81 $ 6.99 $ 4.35 Weighted average number of Common Stock shares outstanding – assuming dilution 83,807 90,524 93,923 Class B Common Stock $ 6.76 $ 6.92 $ 4.34 Weighted average number of Class B Common Stock shares outstanding – assuming dilution 10,149 10,176 10,233 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year (in thousands) 2025 2024 2023 Net income $ 570,582 $ 633,125 $ 408,375 Other comprehensive (loss) income, net of tax: Defined benefit plans reclassification including pension costs: Actuarial gain 21 3,885 3,762 Prior service (costs) credits ( 82 ) 12 8 Postretirement benefits reclassification including benefit costs: Actuarial (loss) gain ( 7,804 ) 2,239 ( 6,031 ) Net change in unrealized gain/loss on short-term investments ( 25 ) 25 — Pension plan settlement — — 82,822 Other comprehensive (loss) income, net of tax ( 7,890 ) 6,161 80,561 Comprehensive income $ 562,692 $ 639,286 $ 488,936 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2025 December 31, 2024 ASSETS Current Assets: Cash and cash equivalents $ 281,918 $ 1,135,824 Short-term investments — 301,210 Accounts receivable, trade 585,777 567,653 Allowance for doubtful accounts ( 11,176 ) ( 14,674 ) Accounts receivable from The Coca-Cola Company 70,197 89,871 Accounts receivable, other 54,889 40,692 Inventories 336,401 330,395 Prepaid expenses and other current assets 108,668 96,331 Total current assets 1,426,674 2,547,302 Property, plant and equipment, net 1,604,605 1,505,267 Right-of-use assets - operating leases 116,611 112,351 Leased property under financing leases, net 1,160 3,138 Other assets 216,428 181,048 Goodwill 165,903 165,903 Distribution agreements, net 767,360 792,252 Customer lists, net 4,257 5,878 Total assets $ 4,302,998 $ 5,313,139 LIABILITIES AND (DEFICIT)/EQUITY Current Liabilities: Current portion of obligations under operating leases $ 24,412 $ 23,257 Current portion of obligations under financing leases 556 2,685 Accounts payable, trade 359,107 334,878 Accounts payable to The Coca-Cola Company 182,446 187,271 Other accrued liabilities 307,237 246,687 Accrued compensation 154,899 168,692 Current portion of debt 100,000 349,699 Total current liabilities 1,128,657 1,313,169 Deferred income taxes 143,738 132,941 Pension and postretirement benefit obligations 69,298 58,502 Other liabilities 918,755 859,559 Noncurrent portion of obligations under operating leases 95,076 92,362 Noncurrent portion of obligations under financing leases 1,188 2,346 Long-term debt 2,686,009 1,436,649 Total liabilities 5,042,721 3,895,528 Commitments and Contingencies (Deficit)/Equity: Convertible Preferred Stock, $ 100.00 par value: authorized - 50,000 shares; issued - none — — Nonconvertible Preferred Stock, $ 100.00 par value: authorized - 50,000 shares; issued - none — — Preferred Stock, $ 0.01 par value: authorized - 20,000,000 shares; issued - none — — Common Stock, $ 1.00 par value: authorized - 300,000,000 shares; issued - 56,517,334 and 108,327,480 shares, respectively 56,517 108,327 Class B Common Stock, $ 1.00 par value: authorized - 100,000,000 shares; issued - 10,046,960 and 16,328,100 shares, respectively 10,047 16,328 Class C Common Stock, $ 1.00 par value: authorized - 20,000,000 shares; issued - none — — Additional paid in capital 23,764 23,764 Retained (deficit) earnings ( 824,046 ) 1,395,183 Accumulated other comprehensive (loss) income ( 6,005 ) 1,885 Treasury stock, at cost: Common Stock - 0 and 31,196,605 shares, respectively — ( 127,467 ) Treasury stock, at cost: Class B Common Stock - 0 and 6,281,140 shares, respectively — ( 409 ) Total (deficit)/equity ( 739,723 ) 1,417,611 Total liabilities and (deficit)/equity $ 4,302,998 $ 5,313,139 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year (in thousands) 2025 2024 2023 Cash Flows from Operating Activities: Net income $ 570,582 $ 633,125 $ 408,375 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense from property, plant and equipment and financing leases 195,081 170,343 153,472 Amortization of intangible assets and deferred proceeds, net 23,449 23,448 23,494 Fair value adjustment of acquisition related contingent consideration 131,901 59,166 159,354 Deferred income taxes 13,704 2,529 ( 49,021 ) Amortization of debt costs 3,346 2,310 991 Loss on sale of property, plant and equipment 644 3,168 7,181 Pension plan settlement expense — — 112,796 Change in current assets less current liabilities 10,551 ( 3,774 ) 29,138 Change in other noncurrent assets 7,054 8,904 12,708 Change in other noncurrent liabilities ( 24,408 ) ( 22,862 ) ( 47,798 ) Total adjustments 361,322 243,232 402,315 Net cash provided by operating activities $ 931,904 $ 876,357 $ 810,690 Cash Flows from Investing Activities: Proceeds from the disposal of short-term investments $ 696,415 $ 150,274 $ — Purchases of short-term investments ( 390,111 ) ( 446,309 ) — Additions to property, plant and equipment ( 312,315 ) ( 371,015 ) ( 282,304 ) Investment in equity method investees ( 19,600 ) ( 15,720 ) ( 13,741 ) Proceeds from the sale of property, plant and equipment 6,594 569 695 Net cash used in investing activities $ ( 19,017 ) $ ( 682,201 ) $ ( 295,350 ) Cash Flows from Financing Activities: Payments related to share repurchases $ ( 2,606,031 ) $ ( 625,654 ) $ — Proceeds from bridge loan 1,200,000 — — Proceeds from term loan facility upon modification 950,000 — — Repayment of bridge loan upon extinguishment ( 800,000 ) — — Repayment of senior bonds ( 350,000 ) — — Cash dividends paid ( 86,673 ) ( 185,635 ) ( 46,868 ) Payments of acquisition related contingent consideration ( 68,884 ) ( 64,312 ) ( 28,208 ) Debt issuance fees ( 3,396 ) ( 15,512 ) ( 340 ) Payments on financing lease obligations ( 1,809 ) ( 2,488 ) ( 2,303 ) Proceeds from bond issuance — 1,200,000 — Net cash (used in) provided by financing activities $ ( 1,766,793 ) $ 306,399 $ ( 77,719 ) Net (decrease) increase in cash and cash equivalents $ ( 853,906 ) $ 500,555 $ 437,621 Cash and cash equivalents at beginning of year 1,135,824 635,269 197,648 Cash and cash equivalents at end of year $ 281,918 $ 1,135,824 $ 635,269 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (in thousands, except per share data) Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings (Deficit) Accumulated Other Comprehensive (Loss) Income Treasury Stock - Common Stock Treasury Stock - Class B Common Stock Total Equity (Deficit) Balance on December 31, 2022 $ 114,314 $ 16,328 $ 18,375 $ 1,112,462 $ ( 84,837 ) $ ( 60,845 ) $ ( 409 ) $ 1,115,388 Net income — — — 408,375 — — — 408,375 Other comprehensive income, net of tax — — — — 80,561 — — 80,561 Dividends declared: Common Stock ($ 1.80 per share) — — — ( 150,642 ) — — — ( 150,642 ) Class B Common Stock ($ 1.80 per share) — — — ( 18,084 ) — — — ( 18,084 ) Balance on December 31, 2023 $ 114,314 $ 16,328 $ 18,375 $ 1,352,111 $ ( 4,276 ) $ ( 60,845 ) $ ( 409 ) $ 1,435,598 Net income — — — 633,125 — — — 633,125 Other comprehensive income, net of tax — — — — 6,161 — — 6,161 Dividends declared: Common Stock ($ 0.35 per share) — — — ( 27,452 ) — — — ( 27,452 ) Class B Common Stock ($ 0.35 per share) — — — ( 3,517 ) — — — ( 3,517 ) Share repurchases (1) ( 5,987 ) — 5,389 ( 559,084 ) — ( 66,622 ) — ( 626,304 ) Balance on December 31, 2024 $ 108,327 $ 16,328 $ 23,764 $ 1,395,183 $ 1,885 $ ( 127,467 ) $ ( 409 ) $ 1,417,611 Net income — — — 570,582 — — — 570,582 Other comprehensive loss, net of tax — — — — ( 7,890 ) — — ( 7,890 ) Dividends declared: Common Stock ($ 1.00 per share) — — — ( 76,625 ) — — — ( 76,625 ) Class B Common Stock ($ 1.00 per share) — — — ( 10,048 ) — — — ( 10,048 ) Share repurchases (2) ( 20,322 ) — — ( 2,578,276 ) — ( 34,755 ) — ( 2,633,353 ) Retirement of Treasury Stock ( 31,488 ) ( 6,281 ) — ( 124,862 ) — 162,222 409 — Balance on December 31, 2025 $ 56,517 $ 10,047 $ 23,764 $ ( 824,046 ) $ ( 6,005 ) $ — $ — $ ( 739,723 ) (1) The share repurchases relate to shares repurchased in a tender offer and a separate share repurchase transaction with a subsidiary of The Coca‑Cola Company, as well as shares repurchased under a separate share repurchase program approved by the Board of Directors (as discussed in Note 5).
  • (2) The share repurchases relate to the Repurchase (as defined in Note 2), as well as shares repurchased under a separate share repurchase program approved by the Board of Directors (as discussed in Note 5).
  • The Company also distributes products for several other beverage companies, including Monster Energy Company and Keurig Dr Pepper Inc.
  • The Company manages its business on the basis of two operating segments.
  • The additional operating segment, which includes the Red Classic subsidiaries, does not meet the quantitative threshold for separate reporting, and, therefore, has been reported as “All Other.” Principles of Consolidation The consolidated financial statements include the accounts and the consolidated operations of the Company and its majority-owned subsidiaries.
  • Amortization expense for internal use software, which is included in depreciation expense, was $ 1.1 million in 2025, $ 1.0 million in 2024 and $ 1.7 million in 2023.
  • During 2025, 2024 and 2023, the Company performed its annual impairment test of goodwill and determined there was no impairment of the carrying values of these assets.
  • Pension and Postretirement Benefit Plans The Company sponsors a pension plan (the “Bargaining Plan”) for certain employees under collective bargaining agreements.
  • The Company’s brand partners also provide funding related to the delivery of post-mix gallons to locally managed customers within the Company’s territories.
  • As a result, the holders of the Class B Common Stock control approximately 78 % of the total voting power of the stockholders of the Company and control the election of the Board of Directors.
  • Treasury Stock Retirement In the third quarter of 2025, the Company retired 31,488,535 shares of Common Stock and 6,281,140 shares of Class B Common Stock included in treasury stock.
  • The retired treasury stock had a carrying value of $ 162.6 million.
  • The retirement of treasury stock was recorded as a reduction to Common Stock and Class B Common Stock at par value, with the excess of carrying value over par value recorded as a deduction from retained (deficit) earnings.
  • Subsequent to the retirement of the above treasury shares in the third quarter of 2025, all additional shares of the Company’s Common Stock that were repurchased during 2025 were immediately retired.
  • Stock Split On March 4, 2025, the Company announced that its Board of Directors had approved a 10 -for-1 forward stock split (the “Stock Split”) of Common Stock and Class B Common Stock.
  • The Stock Split was effected through an amendment to the Company’s Restated Certificate of Incorporation (the “Amendment”).
  • The Amendment also effected a proportionate increase in the number of authorized shares of Common Stock and Class B Common Stock.
  • The Amendment obtained stockholder approval at the Company’s 2025 Annual Meeting of Stockholders, which took place on May 13, 2025.
  • Each stockholder of record as of the close of business on May 16, 2025 received nine additional shares for each share of Common Stock or Class B Common Stock held as of such date reflected in the stockholder’s account on May 23, 2025.
  • Trading began on a split-adjusted basis on May 27, 2025.
  • The par value per share of Common Stock and Class B Common Stock remains unchanged.
  • Accordingly, an amount equal to the par value of the additional shares issued in the Stock Split was reclassified from additional paid-in capital to Common Stock and Class B Common Stock in the Company’s consolidated financial statements.
  • All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Stock Split.
  • Dividends paid per share on both the Common Stock and the Class B Common Stock were $ 1.00 per share in 2025, $ 2.00 per share in 2024 and $ 0.50 per share in 2023.
  • Total cash dividends paid were $ 86.7 million in 2025, $ 185.6 million in 2024 and $ 46.9 million in 2023.
  • Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of specific categories in the rate reconciliation, including additional information for reconciling items that meet a quantitative threshold, and specific disaggregation of income taxes paid and tax expense.
  • The Company conformed to ASU 2023-09, effective December 31, 2025, using a retrospective approach and included the required disclosures in the income tax notes within the consolidated financial statements.
  • The standard update did not affect the Company’s operating results.

and 256 more.

Gone since FY2024

  • The Company is subject to interest rate risk on its revolving credit facility and did not have any outstanding borrowings on its revolving credit facility as of December 31, 2024.
  • As such, assuming no changes in the Company’s capital structure, if market interest rates average 1% more over the next 12 months than the interest rates as of December 31, 2024, there would be no change to interest expense for the next 12 months.
  • The Company estimates a 10-basis point change in the underlying risk-free interest rate used to estimate the Company’s WACC would result in a change of approximately $6 million to the Company’s acquisition related contingent consideration liability.
  • The Company estimates a 10% increase in the market prices of its key commodities, including aluminum, PET resin and high-fructose corn syrup, and excluding concentrate, over the current market prices would cumulatively increase costs during the next 12 months by approximately $66 million assuming no change in volume.
  • The Company periodically uses commodity derivative instruments in the management of this risk, and estimates a 10% decrease in the underlying commodity prices would have decreased the fair value of our commodity derivative instruments by approximately $2 million as of December 31, 2024.
  • The annual rate of inflation in the United States, as measured by year-over-year changes in the Consumer Price Index, was 2.9% in 2024, 3.4% in 2023 and 6.5% in 2022.
  • CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year (in thousands, except per share data) 2024 2023 2022 Net sales $ 6,899,716 $ 6,653,858 $ 6,200,957 Cost of sales 4,146,537 4,055,147 3,923,003 Gross profit 2,753,179 2,598,711 2,277,954 Selling, delivery and administrative expenses 1,832,829 1,764,260 1,636,907 Income from operations 920,350 834,451 641,047 Interest expense (income), net 1,848 ( 918 ) 24,792 Mark-to-market on acquisition related contingent consideration 59,166 159,354 32,301 Pension plan settlement expense — 112,796 — Other expense, net 2,682 5,738 8,867 Income before taxes 856,654 557,481 575,087 Income tax expense 223,529 149,106 144,929 Net income $ 633,125 $ 408,375 $ 430,158 Basic net income per share: Common Stock $ 70.10 $ 43.56 $ 45.88 Weighted average number of Common Stock shares outstanding 8,035 8,369 8,117 Class B Common Stock $ 69.50 $ 43.56 $ 45.93 Weighted average number of Class B Common Stock shares outstanding 1,005 1,005 1,257 Diluted net income per share: Common Stock $ 69.94 $ 43.48 $ 45.74 Weighted average number of Common Stock shares outstanding – assuming dilution 9,053 9,392 9,405 Class B Common Stock $ 69.17 $ 43.40 $ 45.76 Weighted average number of Class B Common Stock shares outstanding – assuming dilution 1,018 1,023 1,288 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year (in thousands) 2024 2023 2022 Net income $ 633,125 $ 408,375 $ 430,158 Other comprehensive income, net of tax: Defined benefit plans reclassification including pension costs: Actuarial gain 3,885 3,762 7,742 Prior service credits (costs) 12 8 ( 116 ) Postretirement benefits reclassification including benefit costs: Actuarial gain (loss) 2,239 ( 6,031 ) 7,991 Unrealized gain on short-term investments 25 — — Pension plan settlement — 82,822 — Foreign currency translation adjustment — — 9 Other comprehensive income, net of tax 6,161 80,561 15,626 Comprehensive income $ 639,286 $ 488,936 $ 445,784 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 1,135,824 $ 635,269 Short-term investments 301,210 — Accounts receivable, trade 567,653 555,933 Allowance for doubtful accounts ( 14,674 ) ( 16,060 ) Accounts receivable from The Coca-Cola Company 89,871 51,936 Accounts receivable, other 40,692 67,533 Inventories 330,395 321,932 Prepaid expenses and other current assets 96,331 88,585 Total current assets 2,547,302 1,705,128 Property, plant and equipment, net 1,505,267 1,320,563 Right-of-use assets - operating leases 112,351 122,708 Leased property under financing leases, net 3,138 4,785 Other assets 181,048 145,213 Goodwill 165,903 165,903 Distribution agreements, net 792,252 817,143 Customer lists, net 5,878 7,499 Total assets $ 5,313,139 $ 4,288,942 LIABILITIES AND EQUITY Current Liabilities: Current portion of obligations under operating leases $ 23,257 $ 26,194 Current portion of obligations under financing leases 2,685 2,487 Accounts payable, trade 334,878 383,562 Accounts payable to The Coca-Cola Company 187,271 139,499 Other accrued liabilities 246,687 237,994 Accrued compensation 168,692 146,932 Dividends payable — 154,666 Current portion of debt 349,699 — Total current liabilities 1,313,169 1,091,334 Deferred income taxes 132,941 128,435 Pension and postretirement benefit obligations 58,502 60,614 Other liabilities 859,559 866,499 Noncurrent portion of obligations under operating leases 92,362 102,271 Noncurrent portion of obligations under financing leases 2,346 5,032 Long-term debt 1,436,649 599,159 Total liabilities 3,895,528 2,853,344 Commitments and Contingencies Equity: Convertible Preferred Stock, $ 100.00 par value: authorized - 50,000 shares; issued - none — — Nonconvertible Preferred Stock, $ 100.00 par value: authorized - 50,000 shares; issued - none — — Preferred Stock, $ 0.01 par value: authorized - 20,000,000 shares; issued - none — — Common Stock, $ 1.00 par value: authorized - 30,000,000 shares; issued - 10,832,748 and 11,431,367 shares, respectively 10,833 11,431 Class B Common Stock, $ 1.00 par value: authorized - 10,000,000 shares; issued - 1,632,810 shares 1,633 1,633 Class C Common Stock, $ 1.00 par value: authorized - 20,000,000 shares; issued - none — — Additional paid in capital 135,953 135,953 Retained earnings 1,395,183 1,352,111 Accumulated other comprehensive income (loss) 1,885 ( 4,276 ) Treasury stock, at cost: Common Stock - 3,119,660 and 3,062,374 shares, respectively ( 127,467 ) ( 60,845 ) Treasury stock, at cost: Class B Common Stock - 628,114 shares ( 409 ) ( 409 ) Total equity 1,417,611 1,435,598 Total liabilities and equity $ 5,313,139 $ 4,288,942 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year (in thousands) 2024 2023 2022 Cash Flows from Operating Activities: Net income $ 633,125 $ 408,375 $ 430,158 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense from property, plant and equipment and financing leases 170,343 153,472 147,962 Amortization of intangible assets and deferred proceeds, net 23,448 23,494 23,628 Fair value adjustment of acquisition related contingent consideration 59,166 159,354 32,301 Loss on sale of property, plant and equipment 3,168 7,181 5,642 Deferred income taxes 2,529 ( 49,021 ) 8,977 Amortization of debt costs 2,310 991 1,012 Pension plan settlement expense — 112,796 — Deferred payroll taxes under CARES Act — — ( 18,739 ) Change in current assets less current liabilities ( 3,774 ) 29,138 ( 74,784 ) Change in other noncurrent assets 8,904 12,708 31,779 Change in other noncurrent liabilities ( 22,862 ) ( 47,798 ) ( 33,430 ) Total adjustments 243,232 402,315 124,348 Net cash provided by operating activities $ 876,357 $ 810,690 $ 554,506 Cash Flows from Investing Activities: Additions to property, plant and equipment $ ( 371,015 ) $ ( 282,304 ) $ ( 298,611 ) Purchases of short-term investments ( 446,309 ) — — Proceeds from the disposal of short-term investments 150,274 — — Investment in equity method investees ( 15,720 ) ( 13,741 ) ( 3,094 ) Proceeds from the sale of property, plant and equipment 569 695 7,369 Acquisition of distribution rights — — ( 30,649 ) Net cash used in investing activities $ ( 682,201 ) $ ( 295,350 ) $ ( 324,985 ) Cash Flows from Financing Activities: Proceeds from bond issuance $ 1,200,000 $ — $ — Payments related to share repurchases ( 625,654 ) — — Cash dividends paid ( 185,635 ) ( 46,868 ) ( 9,374 ) Payments of acquisition related contingent consideration ( 64,312 ) ( 28,208 ) ( 36,515 ) Debt issuance fees ( 15,512 ) ( 340 ) ( 310 ) Payments on financing lease obligations ( 2,488 ) ( 2,303 ) ( 2,988 ) Payments on term loan facility and senior notes — — ( 125,000 ) Net cash provided by (used in) financing activities $ 306,399 $ ( 77,719 ) $ ( 174,187 ) Net increase in cash $ 500,555 $ 437,621 $ 55,334 Cash at beginning of year 635,269 197,648 142,314 Cash at end of year $ 1,135,824 $ 635,269 $ 197,648 See accompanying notes to consolidated financial statements.
  • CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (in thousands, except share data) Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock - Common Stock Treasury Stock - Class B Common Stock Total Equity Balance on December 31, 2021 $ 10,204 $ 2,860 $ 135,953 $ 724,486 $ ( 100,463 ) $ ( 60,845 ) $ ( 409 ) $ 711,786 Net income — — — 430,158 — — — 430,158 Other comprehensive income, net of tax — — — — 15,626 — — 15,626 Dividends declared: Common Stock ($ 4.50 per share) — — — ( 37,354 ) — — — ( 37,354 ) Class B Common Stock ($ 4.50 per share) — — — ( 4,828 ) — — — ( 4,828 ) Conversion of 1,227,546 shares of Class B Common Stock 1,227 ( 1,227 ) — — — — — — Balance on December 31, 2022 $ 11,431 $ 1,633 $ 135,953 $ 1,112,462 $ ( 84,837 ) $ ( 60,845 ) $ ( 409 ) $ 1,115,388 Net income — — — 408,375 — — — 408,375 Other comprehensive income, net of tax — — — — 80,561 — — 80,561 Dividends declared: Common Stock ($ 18.00 per share) — — — ( 150,642 ) — — — ( 150,642 ) Class B Common Stock ($ 18.00 per share) — — — ( 18,084 ) — — — ( 18,084 ) Balance on December 31, 2023 $ 11,431 $ 1,633 $ 135,953 $ 1,352,111 $ ( 4,276 ) $ ( 60,845 ) $ ( 409 ) $ 1,435,598 Net income — — — 633,125 — — — 633,125 Other comprehensive income, net of tax — — — — 6,161 — — 6,161 Dividends declared: Common Stock ($ 3.50 per share) — — — ( 27,452 ) — — — ( 27,452 ) Class B Common Stock ($ 3.50 per share) — — — ( 3,517 ) — — — ( 3,517 ) Share repurchases (1) ( 598 ) — — ( 559,084 ) — ( 66,622 ) — ( 626,304 ) Balance on December 31, 2024 $ 10,833 $ 1,633 $ 135,953 $ 1,395,183 $ 1,885 $ ( 127,467 ) $ ( 409 ) $ 1,417,611 (1) The share repurchases relate to shares repurchased in a tender offer and a separate share repurchase transaction with a subsidiary of The Coca‑Cola Company, both discussed in Note 2, as well as a separate share repurchase program approved by the Board of Directors, discussed in Note 5.
  • The Company also distributes products for several other beverage companies, including Keurig Dr Pepper Inc. and Monster Energy Company.
  • The Company manages its business on the basis of three operating segments.
  • The additional two operating segments, which include Data Ventures, Inc. and the Red Classic subsidiaries, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and, therefore, have been combined into “All Other.” Principles of Consolidation The consolidated financial statements include the accounts and the consolidated operations of the Company and its majority-owned subsidiaries.
  • Amortization expense for internal use software, which is included in depreciation expense, was $ 1.0 million in 2024, $ 1.7 million in 2023 and $ 3.0 million in 2022.
  • During 2024, 2023 and 2022, the Company performed its annual impairment test of goodwill and determined there was no impairment of the carrying values of these assets.
  • Pension and Postretirement Benefit Plans The Company has historically sponsored two pension plans.
  • The primary Company-sponsored pension plan (the “Primary Plan”) was frozen as of June 30, 2006 and no benefits accrued to participants after that date.
  • During 2023, the Primary Plan was fully settled.
  • The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements.
  • The Company’s brand partners also provide funding related to the delivery of post-mix gallons to locally managed customers within the Company’s territory.
  • As a result, the holders of the Class B Common Stock control approximately 72 % of the total voting power of the stockholders of the Company and control the election of the Board of Directors.
  • During 2024, dividends of $ 3.50 per share were declared and dividends of $ 20.00 per share were paid on both the Common Stock and the Class B Common Stock.
  • During 2023, dividends of $ 18.00 per share were declared and dividends of $ 5.00 per share were paid on both the Common Stock and the Class B Common Stock.
  • During 2022, dividends of $ 4.50 per share were declared and dividends of $ 1.00 per share were paid on both the Common Stock and the Class B Common Stock.
  • Total cash dividends paid were $ 185.6 million in 2024, $ 46.9 million in 2023 and $ 9.4 million in 2022.
  • Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2022-04, “Liabilities-Supplier Finance Programs,” which requires additional quantitative and qualitative disclosures related to a company’s supply chain finance programs to enhance the transparency of these programs.
  • The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023.
  • The Company adopted ASU 2022-04 in the first quarter of 2023, with the exception of the amendment on rollforward information, which the Company adopted in the fourth quarter of 2024.
  • The adoption did not have a material impact on the Company’s consolidated financial statements.
  • See Note 13 for disclosure related to the Company’s supply chain finance program.
  • In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires additional disclosure of significant segment expenses included in the reported measure of segment profit or loss and regularly provided to the Chief Operating Decision Maker (the “CODM”).
  • It also requires disclosure and a description of the composition of other amounts by reportable segment, disclosure of a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods and disclosure of the CODM’s title and process for assessing a reportable segment’s profit or loss.
  • The new guidance is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024.
  • The Company adopted ASU 2023-07 in the fourth quarter of 2024, noting no material impact on its consolidated financial statements.
  • See Note 4 for disclosure related to the Company’s segment reporting.
  • Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of specific categories in the rate reconciliation, including additional information for reconciling items that meet a quantitative threshold, and specific disaggregation of income taxes paid and tax expense.
  • The Company has evaluated the impact ASU 2023-09 will have on its consolidated financial statements and does not expect a material impact upon adoption.
  • In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires disclosure of disaggregated income expenses, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization, among other things.
  • Frank Harrison, III As of December 31, 2024, J.

and 250 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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