THE COCA-COLA COMPANY AND SUBSIDIARIES

Table of Contents


				Page
		Forward-Looking Statements		1

			~~Page Number~~
	~~Forward-Looking Statements~~		1

	Part I. Financial Information

Item 1.		Financial Statements ~~(Unaudited)~~		2

		~~Condensed~~ Consolidated Statements of Income — Three Months Ended March 31, 2023 and ~~nine months ended September 29, 2017 and September 30, 2016~~April 1, 20 22		2

		~~Condensed~~ Consolidated Statements of Comprehensive Income — Three Months Ended March 31 , 202 3 and ~~nine months ended September 29, 2017 and September 30, 2016~~ April 1, 20 2 2		3

		~~Condensed~~ Consolidated Balance Sheets — ~~September 29, 2017~~March 31, 2023 and December 31, ~~2016~~202 2		4

		~~Condensed~~ Consolidated Statements of Cash Flows — ~~Nine months ended September 29, 2017~~Three Months Ended March 31 , 202 3 and ~~September 30, 2016~~April 1, 202 2		5

		Notes to ~~Condensed~~ Consolidated Financial Statements		6

Item 2.		~~Management's~~Management ’s Discussion and Analysis of Financial Condition and Results of Operations		4127

Item 3.		Quantitative and Qualitative Disclosures About Market Risk		6539

Item 4.		Controls and Procedures		6539

		Part II. Other Information

Item 1.		Legal Proceedings		6540

Item 1A.		Risk Factors		6641

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		6642

Item 6.		~~Exhibits~~	67Exhibits		42
		Signatures		7146

FORWARD-LOOKING STATEMENTS

This report contains information that may constitute ~~"forward-looking~~“forward-looking statements."” Generally, the words ~~"believe," "expect," "intend," "estimate," "anticipate," "project," "will"~~“believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to volume growth, share of sales and ~~earnings~~net income per share growth, and statements expressing general views about future operating results — are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Our Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause our Company’s actual results to differ materially from ~~our Company's~~ historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the possibility that the assumptions used to calculate our estimated aggregate incremental tax and interest liability related to the potential unfavorable outcome of the ongoing tax dispute with the U.S. Internal Revenue Service could significantly change; those described in Part II, ~~"Item~~“Item 1A. Risk ~~Factors"~~Factors” and elsewhere in this report and in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~,2022; and those described from time to time in our future reports filed with the Securities and Exchange Commission.

Part I. Financial Information

Item 1. Financial Statements ~~(Unaudited)~~

THE COCA-COLA COMPANY AND SUBSIDIARIES

~~CONDENSED~~ CONSOLIDATED STATEMENTS OF INCOME

~~(UNAUDITED)~~

(In millions except per share data)


	Three Months Ended
		March 31, 2023		April 1, 2022
Net Operating Revenues		$	10,980	$	10,491
Cost of goods sold		4,317		4,091
Gross Profit		6,663		6,400
Selling, general and administrative expenses		3,185		2,967
Other operating charges		111		28
Operating Income		3,367		3,405
Interest income		168		78
Interest expense		372		182
Equity income (loss) — net		275		262
Other income (loss) — net		615		(105)
Income Before Income Taxes		4,053		3,458
Income taxes		940		665
Consolidated Net Income		3,113		2,793
Less: Net income (loss) attributable to noncontrolling interests		6		12
Net Income Attributable to Shareowners of The Coca-Cola Company		$	3,107	$	2,781
Basic Net Income Per Share1		$	0.72	$	0.64
Diluted Net Income Per Share1		$	0.72	$	0.64
Average Shares Outstanding — Basic		4,326		4,332
Effect of dilutive securities		19		25
Average Shares Outstanding — Diluted		4,345		4,357

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016
NET OPERATING REVENUES $ 9,078
$ 10,633
$ 27,898
$ 32,454
Cost of goods sold 3,395
4,131
10,567
12,671
GROSS PROFIT 5,683
6,502
17,331
19,783
Selling, general and administrative expenses 3,203
4,009
9,660
11,682
Other operating charges 360
222
1,491
830
OPERATING INCOME 2,120
2,271
6,180
7,271
Interest income 175
164
495
472
Interest expense 208
182
631
485
Equity income (loss) — net 358
281
883
678
Other income (loss) — net (771 ) (1,106 ) (1,122 ) (315 )
INCOME BEFORE INCOME TAXES 1,674
1,428
5,805
7,621
Income taxes 230
378
1,805
1,618
CONSOLIDATED NET INCOME 1,444
1,050
4,000
6,003
Less: Net income (loss) attributable to noncontrolling interests (3 ) 4
0 26
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY
$ 1,447
$ 1,046
$ 4,000
$ 5,977
BASIC NET INCOME PER SHARE¹
$ 0.34
$ 0.24
$ 0.94
$ 1.38
DILUTED NET INCOME PER SHARE¹
$ 0.33
$ 0.24
$ 0.92
$ 1.37
DIVIDENDS PER SHARE $ 0.37
$ 0.35
$ 1.11
$ 1.05
AVERAGE SHARES OUTSTANDING 4,266
4,315
4,275
4,322
Effect of dilutive securities 54
49
52
52
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 4,320
4,364
4,327
4,374

¹Calculated based on net income attributable to shareowners of The Coca-Cola Company.

Refer to Notes to ~~Condensed~~ Consolidated Financial Statements.

THE COCA-COLA COMPANY AND SUBSIDIARIES

~~CONDENSED~~ CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

~~(UNAUDITED)~~

(In millions)

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016
CONSOLIDATED NET INCOME $ 1,444
$ 1,050
$ 4,000
$ 6,003
Other comprehensive income:

Net foreign currency translation adjustment 693
86
1,511
415
Net gain (loss) on derivatives (96 ) (101 ) (394 ) (666 )
Net unrealized gain (loss) on available-for-sale securities 1
(82 ) 165
79
Net change in pension and other benefit liabilities 49
39
82
128
TOTAL COMPREHENSIVE INCOME (LOSS) 2,091
992
5,364
5,959
Less: Comprehensive income (loss) attributable to noncontrolling interests (2 ) 2
2
17
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 2,093
$ 990
$ 5,362
$ 5,942


	Three Months Ended
		March 31, 2023		April 1, 2022
Consolidated Net Income		$	3,113	$	2,793
Other Comprehensive Income:
Net foreign currency translation adjustments		549		1,009
Net gains (losses) on derivatives		(70)		64
Net change in unrealized gains (losses) on available-for-sale debt securities		8		(35)
Net change in pension and other postretirement benefit liabilities		11		85
Total Comprehensive Income		3,611		3,916
Less: Comprehensive income (loss) attributable to noncontrolling interests		(69)		145
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company		$	3,680	$	3,771

Refer to Notes to ~~Condensed~~ Consolidated Financial Statements.

THE COCA-COLA COMPANY AND SUBSIDIARIES

~~CONDENSED~~ CONSOLIDATED BALANCE SHEETS

~~(UNAUDITED)~~

(In millions except par value)

September 29,
2017
December 31,
2016
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 12,528
$ 8,555
Short-term investments 9,691
9,595
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 22,219
18,150
Marketable securities 5,138
4,051
Trade accounts receivable, less allowances of $488 and $466, respectively 3,664
3,856
Inventories 2,608
2,675
Prepaid expenses and other assets 2,993
2,481
Assets held for sale 1,782
2,797
TOTAL CURRENT ASSETS 38,404
34,010
EQUITY METHOD INVESTMENTS 21,644
16,260
OTHER INVESTMENTS 1,117
989
OTHER ASSETS 4,480
4,248
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of
$8,424 and $10,621, respectively
8,306
10,635
TRADEMARKS WITH INDEFINITE LIVES 6,575
6,097
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES 138
3,676
GOODWILL 9,473
10,629
OTHER INTANGIBLE ASSETS 378
726
TOTAL ASSETS $ 90,515
$ 87,270
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 10,212
$ 9,490
Loans and notes payable 13,398
12,498
Current maturities of long-term debt 3,231
3,527
Accrued income taxes 355
307
Liabilities held for sale 437
710
TOTAL CURRENT LIABILITIES 27,633
26,532
LONG-TERM DEBT 32,471
29,684
OTHER LIABILITIES 3,946
4,081
DEFERRED INCOME TAXES 4,313
3,753
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; Authorized — 11,200 shares;
Issued — 7,040 and 7,040 shares, respectively
1,760
1,760
Capital surplus 15,699
14,993
Reinvested earnings 64,759
65,502
Accumulated other comprehensive income (loss) (9,843 ) (11,205 )
Treasury stock, at cost — 2,778 and 2,752 shares, respectively (50,256 ) (47,988 )
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 22,119
23,062
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 33
158
TOTAL EQUITY 22,152
23,220
TOTAL LIABILITIES AND EQUITY $ 90,515
$ 87,270


	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	12,004	$	9,519
Short-term investments	1,166		1,043
Total Cash, Cash Equivalents and Short-Term Investments	13,170		10,562
Marketable securities	1,125		1,069
Trade accounts receivable, less allowances of $512 and $516, respectively	4,599		3,487
Inventories	4,727		4,233
Prepaid expenses and other current assets	3,259		3,240
Total Current Assets	26,880		22,591
Equity method investments	18,744		18,264
Other investments	337		501
Other noncurrent assets	6,324		6,189
Deferred income tax assets	1,696		1,746
Property, plant and equipment, less accumulated depreciation of $9,393 and $9,234, respectively	9,848		9,841
Trademarks with indefinite lives	14,283		14,214
Goodwill	18,678		18,782
Other intangible assets	614		635
Total Assets	$	97,404	$	92,763
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	15,593	$	15,749
Loans and notes payable	5,455		2,373
Current maturities of long-term debt	811		399
Accrued income taxes	1,498		1,203
Total Current Liabilities	23,357		19,724
Long-term debt	36,134		36,377
Other noncurrent liabilities	7,874		7,922
Deferred income tax liabilities	3,171		2,914
The Coca-Cola Company Shareowners’ Equity
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares	1,760		1,760
Capital surplus	18,889		18,822
Reinvested earnings	72,137		71,019
Accumulated other comprehensive income (loss)	(14,322)		(14,895)
Treasury stock, at cost — 2,715 and 2,712 shares, respectively	(53,247)		(52,601)
Equity Attributable to Shareowners of The Coca-Cola Company	25,217		24,105
Equity attributable to noncontrolling interests	1,651		1,721
Total Equity	26,868		25,826
Total Liabilities and Equity	$	97,404	$	92,763

Refer to Notes to ~~Condensed~~ Consolidated Financial Statements.

THE COCA-COLA COMPANY AND SUBSIDIARIES

~~CONDENSED~~ CONSOLIDATED STATEMENTS OF CASH FLOWS

~~(UNAUDITED)~~

(In millions)


								Three Months Ended
	Nine Months Ended							March 31, 2023		April 1, 2022
	September 29, 2017			September 30, 2016
OPERATING ACTIVITIES
Operating Activities							Operating Activities
Consolidated net income	$	4,000		$	6,003		Consolidated net income	$	3,113	$	2,793
Depreciation and amortization	926			1,323			Depreciation and amortization	286		324
Stock-based compensation expense	167			191			Stock-based compensation expense	58		87
Deferred income taxes	606			(98		)	Deferred income taxes	260		41
Equity (income) loss — net of dividends	(559		)	(417		)	Equity (income) loss — net of dividends	(249)		(247)
Foreign currency adjustments	322			193			Foreign currency adjustments	25		100
Significant (gains) losses on sales of assets — net	942			364
Significant (gains) losses — net							Significant (gains) losses — net	(442)		25
Other operating charges	918			277			Other operating charges	88		38
Other items	(9		)	(205		)	Other items	(102)		(70)
Net change in operating assets and liabilities	(1,395		)	(908		)	Net change in operating assets and liabilities	(2,877)		(2,468)
Net cash provided by operating activities	5,918			6,723
INVESTING ACTIVITIES
Net Cash Provided by Operating Activities							Net Cash Provided by Operating Activities	160		623
Investing Activities							Investing Activities
Purchases of investments	(12,925		)	(12,733		)	Purchases of investments	(739)		(835)
Proceeds from disposals of investments	12,161			13,210			Proceeds from disposals of investments	815		1,323
Acquisitions of businesses, equity method investments and nonmarketable securities	(538		)	(767		)	Acquisitions of businesses, equity method investments and nonmarketable securities	(20)		(5)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities	2,790			745			Proceeds from disposals of businesses, equity method investments and nonmarketable securities	319		218
Purchases of property, plant and equipment	(1,194		)	(1,561		)	Purchases of property, plant and equipment	(276)		(217)
Proceeds from disposals of property, plant and equipment	72			92			Proceeds from disposals of property, plant and equipment	21		16
Collateral (paid) received associated with hedging activities — net							Collateral (paid) received associated with hedging activities — net	18		(341)
Other investing activities	(122		)	(319		)	Other investing activities	(21)		(13)
Net cash provided by (used in) investing activities	244			(1,333		)
FINANCING ACTIVITIES
Net Cash Provided by (Used in) Investing Activities							Net Cash Provided by (Used in) Investing Activities	117		146
Financing Activities							Financing Activities
Issuances of debt	24,899			22,667			Issuances of debt	4,074		1,052
Payments of debt	(22,424		)	(20,406		)	Payments of debt	(1,174)		(1,045)
Issuances of stock	1,320			1,295			Issuances of stock	229		449
Purchases of stock for treasury	(3,087		)	(2,509		)	Purchases of stock for treasury	(848)		(546)
Dividends	(3,165		)	(3,028		)	Dividends	(101)		(1,906)
Other financing activities	(42		)	198			Other financing activities	(115)		(979)
Net cash provided by (used in) financing activities	(2,499		)	(1,783		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	310			231
CASH AND CASH EQUIVALENTS
Net increase (decrease) during the period	3,973			3,838
Balance at beginning of period	8,555			7,309
Balance at end of period	$	12,528		$	11,147
Net Cash Provided by (Used in) Financing Activities							Net Cash Provided by (Used in) Financing Activities	2,065		(2,975)
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents							Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	113		173
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents							Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period							Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period	2,455		(2,033)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period							Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	9,825		10,025
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period							Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period	12,280		7,992
Less: Restricted cash and restricted cash equivalents at end of period							Less: Restricted cash and restricted cash equivalents at end of period	276		311
Cash and Cash Equivalents at End of Period							Cash and Cash Equivalents at End of Period	$	12,004	$	7,681

Refer to Notes to ~~Condensed~~ Consolidated Financial Statements.

THE COCA-COLA COMPANY AND SUBSIDIARIES

NOTES TO ~~CONDENSED~~ CONSOLIDATED FINANCIAL STATEMENTS

~~(UNAUDITED)~~

NOTE 1: 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited ~~Condensed Consolidated Financial Statements~~consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("(“U.S. ~~GAAP"~~GAAP”) 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 U.S. GAAP 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, ~~2016~~.2022.

When used in these notes, the terms ~~"The~~“The Coca-Cola Company,~~" "Company," "we," "us"~~” “Company,” “we,” “us” and ~~"our"~~“our” mean The Coca-Cola Company and all entities included in our ~~Condensed Consolidated Financial Statements.~~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 ~~and nine~~ months ended ~~September 29, 2017~~March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2017~~.2023. Sales of our ~~nonalcoholic~~ ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions.

Each of our ~~interim~~quarterly reporting periods, other than the fourth ~~interim reporting period,~~quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The ~~third~~first quarter of ~~2017~~2023 and the ~~third~~first quarter of ~~2016~~2022 ended on ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016~~,April 1, 2022, respectively. Our fourth ~~interim reporting period~~quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls.

Advertising Costs

The ~~Company's~~Company’s accounting policy related to advertising costs for annual reporting purposes ~~as disclosed in Note 1 of our~~ ~~2016~~ ~~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~~quarterly reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple ~~interim periods~~quarters to each of ~~our interim reporting periods.~~those quarters. We use the proportion of each ~~interim period's~~quarter’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,~~quarter, we review our estimated full year unit case volume and our estimated full year marketing expenditures that benefit multiple ~~interim periods~~quarters in order to evaluate if a change in estimate is necessary. The impact of any ~~changes~~change in ~~these~~the full year ~~estimates~~estimate is recognized in the ~~interim period~~quarter in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy.

~~Hyperinflationary Economies~~Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

~~A hyperinflationary economy is one~~We classify time deposits and other investments that ~~has cumulative inflation~~are highly liquid and have maturities of ~~100 percent~~three months or ~~more over a three-year period. In accordance with U.S. GAAP, local subsidiaries in hyperinflationary economies are required to use~~less at the ~~U.S. dollar~~date of purchase as ~~their functional currency~~cash equivalents or restricted cash equivalents, as applicable. Restricted cash and ~~remeasure the monetary assets and liabilities not denominated in U.S. dollars using the rate applicable to conversion~~restricted cash equivalents generally consist of ~~a currency for purposes of dividend remittances. All exchange gains and losses resulting from remeasurement are recognized currently in income.~~

Venezuela has been designated as a hyperinflationary economy. During the nine months ended September 30, 2016, the Venezuelan government devalued its currency and changed its official and most preferential exchange rate, which should be used for purchases of certain essential goods, to 10 bolivars per U.S. dollar from 6.3. The official and most preferential rate is now known as DIPRO. The Venezuelan government also announced a new rate known as DICOM, which is allowed to float freely and is expected to fluctuate based on supply and demand. Management determined that the DICOM rate was the most appropriate legally available rate to remeasure the net monetary assets of our Venezuelan subsidiary.

In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net monetary assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars. As a result of the continued lack of liquidity and our revised assessment of the U.S. dollar value we expected to realize upon the conversion of Venezuelan bolivars into U.S. dollarsamounts held by our ~~bottling partner to pay our concentrate sales receivables, we recorded a write-down of $76 million during the three and nine months ended September 30, 2016~~captive insurance companies, which are included in the line item other ~~operating charges~~noncurrent assets in our ~~condensed~~consolidated balance sheet. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk.

The following tables provide a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of ~~income.~~cash flows (in millions):


	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	12,004	$	9,519
Restricted cash and restricted cash equivalents1,2	276		306
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	12,280	$	9,825

~~We also have certain U.S. dollar-denominated intangible assets associated with products sold~~1Amounts include cash and cash equivalents in Venezuela. As a result of weaker sales and the volatility of foreign currency exchange rates resulting from continued political instability, we recorded impairment charges of $34 million during the nine months ended September 29, 2017our solvency capital portfolio, which are included in the line item other ~~operating charges~~noncurrent assets in our ~~condensed~~ consolidated ~~statement of income. As a result of these impairment charges, the remaining carrying value of all U.S. dollar-denominated intangible assets associated with products sold in Venezuela is zero.~~balance sheets. Refer to Note 4.

~~Recently Issued Accounting Guidance~~

~~In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09,~~ ~~Revenue from Contracts with Customers~~, which will replace most existing revenue recognition guidance in U.S. GAAP and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which will be effective for the Company beginning January 1, 2018.

The Company plans to adopt ASU 2014-09 and its amendments on a modified retrospective basis. We expect that ASU 2014-09's broad definition of variable consideration will require the Company to estimate and record certain variable payments resulting from collaborative funding arrangements, rebates and other pricing allowances earlier than it currently does. While we do not expect this change to have a material impact on our net operating revenues on an annual basis, we do expect that it will have an impact on our revenue in interim periods. Additionally, as a result of electing certain of the practical expedients available under the ASU, the Company expects there will be some reclassifications to or from net operating revenues, cost of goods sold, and selling, general and administrative expenses. As we continue our assessment, the Company is also identifying and preparing to implement changes to our accounting policies and practices, business processes, systems and controls to support the new revenue recognition and disclosure requirements. We are in the process of quantifying the impacts that will result from applying the new guidance. Our assessment will be completed during fiscal year 2017.

~~In November 2015, the FASB issued ASU 2015-17,~~ ~~Balance Sheet Classification of Deferred Taxes~~. The amendments in this update are intended to simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a consolidated statement of financial position. The standard was prospectively adopted by the Company on January 1, 2017. Had the Company retrospectively adopted the standard2Amount as of December 31, ~~2016,~~2022 includes cash and cash equivalents related to assets held for sale, which are included in the line ~~items~~item prepaid expenses and other ~~assets and accounts payable and accrued expenses in our condensed consolidated balance sheet would have been reduced by $80 million and $692 million, respectively, as a result of reclassifying the~~ current ~~deferred tax~~ assets and liabilities. The offsetting impact for the reclassifications as of December 31, 2016 would have increased the noncurrent line items other assets and deferred income taxes in our condensed consolidated balance sheet by $54 million and $666 million, respectively.

~~In January 2016, the FASB issued ASU 2016-01,~~ ~~Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities~~, which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for the Company beginning January 1, 2018 and will require us to recognize any changes in the fair value of certain equity investments in net income. These changes are currently recognized in other comprehensive income ("OCI").

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases~~, which requires lessees to recognize on the balance sheet a right-of-use asset, representing their right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for the Company beginning January 1, 2019 and we are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements.

~~In March 2016, the FASB issued ASU 2016-09,~~ ~~Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting~~.The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The Company adopted ASU 2016-09 on January 1, 2017 by prospectively recognizing excess tax benefits and tax deficiencies in our consolidated ~~statement of income as the awards vested or were settled. Effective January~~ balance sheet. Refer to Note 2.


	April 1, 2022		December 31, 2021
Cash and cash equivalents	$	7,681	$	9,684
Restricted cash and restricted cash equivalents1,2	311		341
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	7,992	$	10,025

1 ~~2017, the Company also prospectively presented excess tax benefits as an operating activity, rather than a financing activity,~~Amounts include cash and cash equivalents in our consolidated statement of cash flows. Had these changes been required to be adopted retrospectively, during the three and nine months ended September 30, 2016, the Company would have recognized an additional $20 million and $140 million, respectively, of excess tax benefits in our condensed consolidated statements of income. Additionally, during the nine months ended September 30,

2016, the Company would have reduced our financing activities and increased our operating activities by $140 million in our condensed consolidated statement of cash flows. The Company has elected, consistent with past practice, to estimate the number of awards thatsolvency capital portfolio, which are ~~expected to vest to determine the amount of stock-based compensation expense recognized in earnings.~~

~~In June 2016, the FASB issued ASU 2016-13,~~ ~~Financial Instruments — Measurement of Credit Losses on Financial Instruments~~, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and we are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements.

~~In October 2016, the FASB issued ASU 2016-16,~~ ~~Intra-Entity Transfers of Assets Other Than Inventory~~, which requires the Company to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for the Company beginning January 1, 2018 and will be applied using a modified retrospective basis. We currently expect the cumulative-effect adjustment will result in a net deferred tax asset of approximately $2.8 billion. This amount will primarily be recorded as a deferred tax assetincluded in the line item other noncurrent assets in our consolidated balance ~~sheet.~~sheets. Refer to Note 4.

~~In November 2016, the FASB issued ASU 2016-18,~~ ~~Restricted Cash. The amendments in this update address diversity in practice that exists in the classification and presentation of changes in restricted~~2Amounts include cash and ~~require that a statement of cash flows explain the change during the period in the total of cash,~~ cash equivalents ~~and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective~~related to assets held for the Company beginning January 1, 2018 and is required to be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact that ASU 2016-18 will have on our consolidated statement of cash flows.

~~In January 2017, the FASB issued ASU 2017-01,~~ ~~Clarifying the Definition of a Business~~,sale, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is required to be applied prospectively and will be effective for the Company beginning January 1, 2018. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.

~~In March 2017, the FASB issued ASU 2017-07,~~ ~~Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component of the Company's net periodic pension cost and net periodic postretirement benefit cost be~~are included in the ~~same~~ line item asprepaid expenses and other compensation costs arising from services rendered by employees, with the other components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. ASU 2017-07 is effective for the Company beginning January 1, 2018 and is required to be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit costcurrent assets in our income statement. ASU 2017-07 allows a practical expedient for the estimation basis for applying the retrospective presentation requirements and requires the prospective adoption, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit cost in assets.consolidated balance sheets.

~~In August 2017, the FASB issued ASU 2017-12,~~ ~~Targeted Improvements to Accounting for Hedging Activities~~,which eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same income statement line item where the hedged item resides. The amendments include new alternatives for measuring the hedged item for fair value hedges of interest rate risk and ease the requirements for effectiveness testing, hedge documentation and applying the critical terms match method. Finally, the standard introduces new alternatives that permit companies to reduce the risk of material error if the shortcut method is misapplied. ASU 2017-12 is effective for the Company beginning January 1, 2019 and is required to be applied prospectively. The Company is currently evaluating the impact that ASU 2017-12 will have on our consolidated financial statements.

NOTE 2: 2: ACQUISITIONS AND DIVESTITURES

Acquisitions

~~During the nine months ended September 29, 2017, our Company's~~Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled ~~$538~~$20 million ~~which primarily related to~~and $5 million during the acquisition of AdeS, a plant-based beverage business, by the Company and several of its bottling partners in Latin America. Additionally, in conjunction with the refranchising of Coca-Cola Refreshments' ("CCR") Southwest operating unit ("Southwest Transaction"), we obtained an equity interest in AC Bebidas, S. de R.L. de C.V. ("AC Bebidas"), a subsidiary of Arca Continental, S.A.B. de C.V. ("Arca").

~~During the nine~~three months ended ~~September 30, 2016, our Company's acquisitions of businesses, equity method investments~~March 31, 2023 and ~~nonmarketable securities totaled $767 million, which primarily related to our acquisition of Xiamen Culiangwang Beverage~~

Technology Co., Ltd. ("China Green"), a maker of plant-based protein beverages in China, and a minority investment in CHI Limited ("CHI"), a Nigerian producer of value-added dairy and juice beverages, which is accounted for under the equity method of accounting. Under the terms of the agreement for our investment in CHI, the Company is obligated to acquire the remaining ownership interest from the existing shareowners in 2019 based on an agreed-upon formula.April 1, 2022, respectively.

Divestitures

~~During the nine months ended September 29, 2017, proceeds~~Proceeds from disposals of businesses, equity method investments and nonmarketable securities ~~totaled $2,790 million, primarily related to proceeds from the refranchising of certain bottling territories in North America and our China bottling operations.~~

During the nine months ended September 30, 2016, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $745 million, primarily related to proceeds from the refranchising of certain bottling territories in North America.

~~Refranchising of China Bottling Operations~~

In November 2016, the Company entered into definitive agreements for the sale of the Company-owned bottling operations in China to the two existing local franchise bottlers, one of which is an equity method investee, and to sell a related cost method investment to one of the franchise bottlers. As a result, the Company's bottling operations in China and a related cost method investment were classified as held for sale as of December 31, 2016. On April 1, 2017, the Company sold a substantial portion of its bottling operations in China to the two local franchise bottlers. The remaining bottling operations and cost method investment were sold on July 1, 2017. We received net proceeds of $963 million as a result of these sales and recognized gains of $79 million and $88 million during the three and nine months ended September 29, 2017, respectively, which were included in the line item other income (loss) — net in our condensed consolidated statements of income.

~~North America Refranchising~~

In conjunction with implementing a new beverage partnership model in North America, the Company refranchised bottling territories that were previously managed by CCR to certain of our unconsolidated bottling partners. These territories generally border these bottlers' existing territories, allowing each bottler to better service local customers and provide more efficient execution. By entering into comprehensive beverage agreements ("CBAs") with each of the bottlers, we granted certain exclusive territory rights for the distribution, promotion, marketing and sale of Company-owned and licensed beverage products as defined by the CBA. In some cases, the Company has entered into, or agreed to enter into, manufacturing agreements that authorize certain bottlers that have executed a CBA to manufacture certain beverage products. If a bottler has not entered into a specific manufacturing agreement, then under the CBA for these territories, CCR retains the rights to produce these beverage products, and the bottlers will purchase from CCR (or other Company-authorized manufacturing bottlers) substantially all of the related finished products needed in order to service the customers in these territories.

Each CBA generally has a term of 10 years and is renewable, in most cases by the bottler and in some cases by the Company, indefinitely for successive additional terms of 10 years each. Under the CBA, except for the CBA entered into in conjunction with the Southwest Transaction and for additional territories sold to AC Bebidas, the bottlers will make ongoing quarterly payments to the Company based on their gross profit in the refranchised territories throughout the term of the CBA, including renewals, in exchange for the grant of the exclusive territory rights.

Contemporaneously with the grant of these rights, the Company sold the distribution assets, certain working capital items, and the exclusive rights to distribute certain beverage brands not owned by the Company, but distributed by CCR, in each of these territories, excluding the territory included in the Southwest Transaction, to the respective bottlers in exchange for cash.

In 2016, the Company formed a new National Product Supply System ("NPSS") to facilitate optimal operation of the U.S. product supply system. Under the NPSS, the Company and several of its existing independent producing bottlers administer key national product supply activities for these bottlers. Additionally, we have sold or are in the process of selling certain production facilities from CCR to these independent producing bottlers in exchange for cash, excluding production facilities included in the Southwest Transaction.

During the nine months ended September 29, 2017 and September 30, 2016, cash proceeds from these sales totaled $1,814 million and $732 million, respectively. Included in the cash proceeds for the nine months ended September 29, 2017 and September 30, 2016, was $279 million and $181 million, respectively, from Coca-Cola Bottling Co. Consolidated ("CCBCC"), an equity method investee. Also included in the cash proceeds for the nine months ended September 29, 2017, was $216 million from AC Bebidas, an equity method investee.

Under the applicable accounting guidance, we were required to derecognize all of the tangible assets sold as well as the intangible assets transferred, including distribution rights, customer relationships and an allocated portion of goodwill related to these territories. We recognized losses of $762 million and $1,089 million during the three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016, respectively. During the nine months ended September 29, 2017 and September 30, 2016, the~~

~~Company recognized losses of $2,533~~April 1, 2022 totaled $319 million and ~~$1,657~~$218 million, ~~respectively. These losses~~respectively, which primarily related to the derecognition of the intangible assets transferred or reclassified as held for sale and were included in the line item other income (loss) — net in our condensed consolidated statements of income. See further discussion of assets and liabilities held for sale below. In total, we expect to recover the value of the intangible assets transferred to the bottlers under the CBAs through the future quarterly payments; however, as the payments for the territory rights are dependent on the bottlers' future gross profit in these territories, they are considered a form of contingent consideration.

There is diversity in practice as it relates to the accounting for contingent consideration by the seller. The seller can account for the future contingent payments received as a gain contingency, recognizing the amounts in the income statement only after the related contingencies are resolved and the gain is realized, which in this arrangement will be quarterly as the bottlers earn gross profit in the transferred territories. Alternatively, the seller can record a receivable for the contingent consideration at fair value on the date of sale and record any future differences between the payments received and this receivable in the income statement as they occur. We elected the gain contingency treatment since the quarterly payments will be received throughout the terms of the CBAs, including all subsequent renewals, regardless of the cumulative amount received as compared to the value of the intangible assets transferred.

~~During the three and nine months ended September 29, 2017, the Company recorded charges of $72 million and $287 million, respectively, primarily related to payments made to certain~~sales of our ~~unconsolidated bottling partners~~ownership interests in order to convert the bottling agreements for their legacy territories and any previously refranchised territories to a single form of CBA with additional requirements. The additional requirements generally include a binding national governance model, mandatory incidence pricing and additional core performance requirements, among other things. As a result of these conversions, the legacy territories and any previously refranchised territories for each of the related bottling partners will be governed under similar CBAs, which will provide consistency across each such bottler's respective territory, and consistency with other U.S. bottlers that have been granted or converted to this form of CBA. The expense related to these payments was included in the line item other income (loss) — net in our condensed consolidated statement of income during the three and nine months ended September 29, 2017.

~~On April 1, 2017, the Company refranchised the Southwest operating unit of CCR, which includes Texas and parts of~~

Oklahoma, New Mexico and Arkansas, in the Southwest Transaction. In conjunction with the Southwest Transaction, Arca contributed its existing beverage business to AC Bebidas. CCR contributed its Southwest operating unit, including all of its assets and liabilities, to AC Bebidas in exchange for an approximate 20 percent interest in AC Bebidas. Arca owns the remaining interest in AC Bebidas. After post-closing adjustments, CCR will have made cash payments of approximately $112 million, net of cash received. As a result of the Southwest Transaction, the Company recognized a gain of $1,060 million due to the difference in the recorded carrying value of the net assets transferred compared to the value of the interest it obtained in AC Bebidas of $2,960 million, which was determined using an income and market approach (a Level 3 measurement). This gain was recorded in the line item other income (loss) — net in our condensed consolidated statement of income.~~AC Bebidas will participate in the NPSS as it relates to its U.S. territory. The Company accounts for its interest in AC Bebidas as an~~certain equity method ~~investment based on our equity ownership percentage, our representation on AC Bebidas' Board of Directors, material intercompany transactions and other governance rights.~~

~~Coca-Cola European Partners~~

In August 2015, the Company entered into an agreement to merge our German bottling operations with Coca-Cola Enterprises, Inc. ("CCE") and Coca-Cola Iberian Partners, S.A.U., formerly known as Coca-Cola Iberian Partners, S.A. ("CCIP"), to create Coca-Cola European Partners plc ("CCEP"). On May 28, 2016, the transaction closed and we exchanged our German bottling operations for an 18 percent interest in CCEP. As a result of recording our interest in CCEP at fair value based on its quoted market price, the deconsolidation of our German bottling operations, and the related reversal of its cumulative translation adjustments, we recognized a gain of $1,400 million. This gain was partially offset by a $77 million loss incurred as a result of reclassifying losses related to our net investment hedges of our German bottling operations from accumulated other comprehensive income (loss) ("AOCI") into earnings as well as transaction costs incurred resulting in a net gain of $1,288 million during the nine months ended September 30, 2016. Refer to Note 8. With the exception of the transaction costs, the net gain was recorded in the line item other income (loss) — net in our condensed consolidated statement of income. The Company accounts for its 18 percent interest in CCEP as an equity method investment based on our equity ownership percentage, our representation on CCEP's Board of Directors, material intercompany transactions and other governance rights.

~~Coca-Cola Beverages Africa Proprietary Limited~~

In November 2014, the Company, SABMiller plc and Gutsche Family Investments entered into an agreement to combine the bottling operations of each of the parties' nonalcoholic ready-to-drink beverage businesses in Southern and East Africa. In connection with the July 2, 2016 closing of the transaction to form the new bottler, which is called Coca-Cola Beverages Africa Proprietary Limited ("CCBA"), the Company: (1) contributed its South African bottling operations to CCBA, which included certain wholly owned subsidiaries and an equity method investment, (2) paid $150 million in cash, (3) obtained a 12 percent

~~interest in CCBA and a 3 percent interest in CCBA's South African subsidiary and (4) acquired several trademarks that are generally indefinite-lived.~~

As a result of recording our interests in CCBA and its South African subsidiary at fair value, the deconsolidation of our South African bottling operations, the derecognition of the equity method investment, and the reversal of related cumulative translation adjustments, we recognized a loss of $21 million. The fair values of the equity investments in CCBA and CCBA's South African subsidiary, along with the acquired trademarks, were determined using income approaches, including discounted cash flow models, and the Company believes the inputs and assumptions used are consistent with those hypothetical marketplace participants would use. The loss recognized resulted primarily from the reversal of the related cumulative translation adjustments. This loss is recorded in the line item other income (loss) — net in our condensed consolidated statement of income during the three and nine months ended September 30, 2016.

Through the Company's 12 percent interest in CCBA, the Company is represented by two directors on CCBA's 10-member Board of Directors. Based on the level of equity ownership, the Company’s representation on the Board of Directors and other governance rights, the Company is accounting for its interests in CCBA and CCBA's South African subsidiary as equity method investments. The Company’s interest in CCBA provides it with a call option to acquire the ownership interest of SABMiller plc at fair value upon the occurrence of certain events, including upon a change in control of SABMiller plc. Refer to Note 16 for more information.

~~Keurig Green Mountain, Inc.~~

In March 2016, a JAB Holding Company-led investor group acquired Keurig Green Mountain, Inc. ("Keurig"), including the shares held by the Company, for $92 per share. As a result of the transaction, the Company received proceeds of $2,380 million, which were recorded in the line item proceeds from disposals of investments in our condensed consolidated statement of cash flows, and recorded a gain of $18 million related to the disposal of our shares of Keurig in the line item other income (loss) — net in our condensed consolidated statement of income during the ~~nine months ended~~ ~~September 30, 2016.~~investees.

Assets and Liabilities Held for Sale

As of ~~September 29, 2017,~~December 31, 2022, the ~~Company had entered into agreements, or otherwise approved plans, to refranchise its remaining U.S.~~Company’s bottling ~~territories. For bottling territories that~~operations in Vietnam met the criteria to be classified as held for ~~sale,~~sale. As a result, we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell. As the fair value less any costs to sell ~~based on~~exceeded the ~~agreed-upon sale price and present~~carrying value, the related assets and liabilities ~~as separate~~were recorded at their carrying value. These assets and liabilities were included in the Bottling Investments operating segment.

In December 2022, the Company received cash proceeds of $823 million in advance of refranchising its bottling operations in Vietnam. This advance was included in the line ~~items~~item accounts payable and accrued expenses in our ~~condensed~~ consolidated balance ~~sheet.~~sheet as of December 31, 2022. The Company ~~expects that these~~refranchised its bottling ~~territories will be refranchised by December 31, 2017.~~

operations in Vietnam in January 2023 and recognized a net gain of $439 million as a result of the sale, which was recorded in the line item other income (loss) — net in our consolidated statement of income.

The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our ~~condensed~~ consolidated balance ~~sheets~~sheet (in millions):

September 29,
2017
December 31, 2016

Cash, cash equivalents and short-term investments $ 10
$ 49

Trade accounts receivable, less allowances 300
43

Inventories 181
264

Prepaid expenses and other assets 34
114

Equity method investments —
1

Other investments —
42

Other assets 7
17

Property, plant and equipment — net 1,145
1,780

Bottlers' franchise rights with indefinite lives 1,121
1,388

Goodwill 296
390

Other intangible assets 154
51

Allowance for reduction of assets held for sale (1,466 ) (1,342 )
Total assets $ 1,782
¹
$ 2,797
²
Accounts payable and accrued expenses $ 381
$ 393

Accrued income taxes 4
13

Other liabilities 52
1

Deferred income taxes —
303

Total liabilities $ 437
¹
$ 710
³

¹Consists of total assets and total liabilities relating to North America refranchising of $1,782 million and $437 million, respectively, which are included in the Bottling Investments operating segment.

² Consists of total assets relating to North America refranchising of $1,247 million, China bottling operations of $1,533 million and other assets held for sale of $17 million, which are included in the Bottling Investments operating segment and Corporate.


	December 31, 2022
Cash, cash equivalents and short-term investments	$	229
Trade accounts receivable, less allowances	12
Inventories	50
Prepaid expenses and other current assets	43
Other noncurrent assets	29
Deferred income tax assets	8
Property, plant and equipment — net	197
Goodwill	34
Assets held for sale	$	602
Accounts payable and accrued expenses	$	154
Accrued income taxes	3
Other noncurrent liabilities	3

³	~~Consists of total liabilities relating to North America refranchising of $224 million, China bottling operations of $483 million and other liabilities~~ Liabilities held for sale ~~of $3 million, which are included in the Bottling Investments operating segment and Corporate.~~	$	160

NOTE 6:8: DEBT AND BORROWING ARRANGEMENTS

Loans and notes payable consist primarily of commercial paper issued in the United States. As of March 31, 2023 and December 31, 2022, we had $5,282 million and $2,146 million, respectively, in outstanding commercial paper borrowings.

During the ~~nine~~three months ended ~~September 29, 2017, the Company issued~~March 31, 2023, our bottling operations in Africa extinguished prior to maturity U.S. dollar- and euro-denominated debt of $1,000 million and €2,500 million, respectively. The carrying value of this debt as of September 29, 2017, was $3,967 million. The general terms of the notes issued are as follows:

~~$500 million~~dollar term loans with a total principal amount of ~~notes due May 25, 2022, at~~$121 million, with variable interest rates ranging from the three-month London Interbank Offered Rate (“LIBOR”) plus 2.950 percent to the three-month LIBOR plus 3.000 percent. Additionally, the bottling operations extinguished prior to maturity a ~~fixed interest rate~~U.S. dollar revolving facility of ~~2.20 percent;~~

~~$500~~$40 million, ~~total principal amount of notes due May 25, 2027, at a fixed interest rate of 2.90 percent;~~

~~€1,500 million total principal amount of notes due March 8, 2019, at~~with a variable interest rate ~~equal to the three-month Euro Interbank Offered Rate ("EURIBOR") plus 0.25 percent;~~

~~€500 million total principal amount of notes due March 9, 2021, at a fixed interest rate of 0.00 percent; and~~

~~€500 million total principal amount of notes due March 8, 2024, at a fixed interest rate of 0.50 percent.~~

During the nine months ended September 29, 2017, the Company retired upon maturity $206 million total principal amount of notes due August 1, 2017, at a fixed interest rate of 7.125 percent and €2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three-month EURIBOR plus 0.15 percent. The Company also extinguished a portion of the long-term debt that was assumed in connection with our acquisition of CCE's former North America business ("Old CCE"). The extinguished notes had a carrying value of $417 million, which included fair value adjustments recorded as part of purchase accounting. The general terms of the notes extinguished were as follo~~ws:~~

~~$95.6 million~~ ~~total principal amount of notes due August 15, 2019, at a fixed interest rate of 4.50 percent;~~

~~$38.6 million~~ ~~total principal amount of notes due February 1, 2022, at a fixed interest rate of~~ ~~8.50 percent~~;

~~$11.7 million total principal amount of notes due September 15, 2022, at a fixed interest rate of 8.00 percent;~~

~~$36.5 million total principal amount of notes due September 15, 2023, at a fixed interest rate of 6.75 percent;~~

~~$9.9 million total principal amount of notes due October 1, 2026, at a fixed interest rate of 7.00 percent;~~

~~$53.8 million total principal amount of notes due November 15, 2026, at a fixed interest rate of 6.95 percent;~~

~~$41.3 million total principal amount of notes due September 15, 2028, at a fixed interest rate of 6.75 percent;~~

~~$32.0 million total principal amount of notes due October 15, 2036, at a fixed interest rate of 6.70 percent;~~

~~$3.4 million total principal amount of notes due March 18, 2037, at a fixed interest rate of 5.71 percent;~~

~~$24.3 million total principal amount of notes due January 15, 2038, at a fixed interest rate of 6.75 percent; and~~

~~$4.7 million total principal amount of notes due May 15, 2098, at a fixed interest rate of 7.00~~Secured Overnight Financing Rate plus 2.344 percent.

The Company recorded a net charge of $38 million in the line item interest expense in our condensed consolidated statement of income during the nine months ended September 29, 2017. This net charge was due to the extinguishment of long-term debt described above.

NOTE 7: 9: COMMITMENTS AND CONTINGENCIES

Guarantees

As of ~~September 29, 2017,~~March 31, 2023, we were contingently liable for guarantees of indebtedness owed by third parties of ~~$690~~$1,047 million, of which ~~$351~~$95 million was related to variable interest entities. ~~These~~Our guarantees are primarily related to third-party customers, bottlers ~~vendors~~ and ~~container manufacturing operations~~vendors and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees ~~was~~is individually significant. ~~The amount represents~~These amounts represent the maximum potential future payments that we could be required to make under the ~~guarantees; however, we do~~guarantees. However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not ~~consider it probable that we will be required to satisfy these guarantees.~~probable.

Concentrations of Credit Risk

We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations.

Legal Contingencies

The Company is involved in various legal proceedings. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. Management believes that the total liabilities toof the Company that may arise as a result of currently pending legal proceedings (excluding tax audit claims) will not have a material adverse effect on the Company taken as a whole.

Tax Audits

The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. ~~We establish reserves to remove some or all of the~~These uncertain tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but notmatters may result in the ~~financial period in which the tax position was originally taken. For purposes~~assessment of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in our income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired. Refer to Note 13.additional taxes.

On September 17, 2015, the Company received a Statutory Notice of Deficiency ~~("Notice"~~(“Notice”) from the U.S. Internal Revenue Service ~~("IRS"~~(“IRS”) seeking approximately $3.3 billion of additional federal income tax for ~~the tax~~ years 2007 through ~~2009, after a five-year audit.~~2009. In the Notice, the IRS ~~claims~~stated its intent to reallocate over $9 billion of income to the U.S. parent company from certain of its foreign affiliates that the ~~Company's United States taxable income should be increased by an amount that creates a potential additional federal income tax liability of approximately $3.3 billion for~~U.S. parent company licensed to manufacture, distribute, sell, market and promote its products in certain non-U.S. markets.

The Notice concerned the ~~period, plus interest. No penalties were asserted in the Notice. The disputed amounts largely relate to a~~Company’s transfer pricing ~~matter involving~~between its U.S. parent company and certain of its foreign affiliates. IRS rules governing transfer pricing require arm’s-length pricing of transactions between related parties such as the ~~appropriate amount of taxable income the Company should report in the United States in connection with~~Company’s U.S. parent and its ~~licensing of intangible property to certain related~~ foreign ~~licensees regarding the manufacturing, distribution, sale, marketing and promotion of products in overseas markets.~~affiliates.

~~The Company has followed~~To resolve the same transfer pricing issue for the tax years 1987 through 1995, the Company and the IRS had agreed in 1996 on an arm’s-length methodology for ~~these licenses since~~determining the ~~methodology was agreed with~~amount of U.S. taxable income that the U.S. parent company would report as compensation from its foreign licensees. The Company and the IRS memorialized this accord in a ~~1996~~ closing agreement resolving that ~~applied back to 1987.~~dispute (“Closing Agreement”). The ~~closing agreement provides prospective penalty protection as long as the Company follows the prescribed methodology and~~Closing Agreement provided that, absent a change in material facts ~~and~~or circumstances ~~and~~or relevant federal tax law, ~~have~~in calculating the Company’s income taxes going forward, the Company would not ~~changed. On February 11, 2016,~~be assessed penalties by the IRS ~~notified~~for using the agreed-upon tax calculation methodology that the Company ~~without further explanation, that~~and the IRS ~~has determined that material facts~~agreed would be used for the 1987 through 1995 tax years.

The IRS audited and ~~circumstances and relevant federal tax law have changed and that it may assert penalties. The Company does not agree with this determination. The Company's~~confirmed the Company’s compliance with the ~~closing agreement was audited and confirmed by the IRS~~agreed-upon Closing Agreement methodology in five successive audit cycles ~~covering~~for tax years 1996 through 2006.

for tax years 2007 through ~~2006,~~2009. Consistent with the ~~last audit concluding as recently as 2009.~~Closing Agreement, the IRS did not assert penalties, and it has yet to do so.

~~The Notice represents a repudiation of the methodology previously adopted in the 1996 closing agreement.~~ The IRS designated the Company’s matter for litigation on October 15, 2015. ToLitigation designation is an IRS determination that forecloses to a company any and all alternative means for resolution of a tax dispute. As a result of the ~~extent~~IRS’ designation of the Company’s matter for litigation, the Company was forced to either accept the IRS’ newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts. The matter remains ~~designated,~~subject to the IRS’ litigation designation, preventing the Company ~~will be prevented~~ from ~~pursuing~~ any ~~administrative settlement at IRS Appeals~~attempt to settle or ~~under~~otherwise mutually resolve the ~~IRS Advance Pricing and Mutual Agreement Program.~~matter with the IRS.

The Company ~~firmly believes that the IRS' claims are without merit and plans to pursue all available administrative and judicial remedies necessary to resolve this matter. To that end, the Company filed~~consequently initiated litigation by filing a petition in the U.S. Tax Court on(“Tax Court”) in December ~~14,~~ 2015, ~~and~~challenging the tax adjustments enumerated in the Notice.

Prior to trial, the IRS ~~filed its answer on February 12, 2016. On October 4, 2017, the IRS filed an amended answer to the Company's petition in which it~~ increased its transfer pricing adjustment by $385 million, resulting in an additional ~~potential~~ tax ~~liability~~adjustment of $135 million. ~~This increases the potential additional federal income tax liability to approximately $3.4 billion for the period, plus interest. A trial date has been set for March 5, 2018.~~ The Company ~~intends to vigorously defend its position and is confident~~obtained a summary judgment in its ~~ability~~favor on a different matter related to ~~prevail~~Mexican foreign tax credits, which thereafter effectively reduced the IRS’ potential tax adjustment by $138 million.

The trial was held in the Tax Court from March through May 2018, and final post-trial briefs were filed and exchanged in April 2019.

On November 18, 2020, the Tax Court issued an opinion (“Opinion”) in which it predominantly sided with the IRS but agreed with the Company that dividends previously paid by the foreign licensees to the U.S. parent company in reliance upon the Closing Agreement should continue to be allowed to offset royalties, including those that would become payable to the Company in accordance with the Opinion. The Tax Court reserved ruling on the ~~merits. On June 20, 2017,~~effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil until after the Tax Court issues its opinion in the separate case of 3M Co. & Subs. v. Commissioner, T.C. Docket No. 5816-13 (filed March 11, 2013). The Tax Court issued its opinion in 3M Co.’s case (“3M Co. opinion”) on February 9, 2023. Once the Tax Court completes its analysis of the application of the 3M Co. opinion to the Company’s case, the Company ~~filed~~expects the Tax Court to render another opinion, and ultimately a ~~motion for summary judgment on~~decision, in the portion of the IRS' adjustments related to our licensee in Mexico. That motion is still pending. The Company regularly assesses the likelihood of adverse outcomes resulting from examinations such as this to determine the adequacy of its tax reserves. Company’s case.

The Company believes that the IRS and the Tax Court misinterpreted and misapplied the applicable regulations in reallocating income earned by the Company’s foreign licensees to increase the Company’s U.S. tax. Moreover, the Company believes that the retroactive imposition of such tax liability using a calculation methodology different from that previously agreed upon by the IRS and the Company, and audited by the IRS for over a decade, is unconstitutional. The Company intends to assert its claims on appeal and vigorously defend its position.

In determining the amount of tax reserve to be recorded as of December 31, 2020, the Company completed the required two-step evaluation process prescribed by Accounting Standards Codification 740, Accounting for Income Taxes. In doing so, we consulted with outside advisors, and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, the Opinion and relevant caselaw. We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims via every available avenue of appeal. We concluded, based on the technical and legal merits of the Company’s tax positions, that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal. In addition, we considered a number of alternative transfer pricing methodologies, including the methodology asserted by the IRS and affirmed in the Opinion (“Tax Court Methodology”), that could be applied by the courts upon final ~~adjudication~~resolution of the litigation. Based on the required probability analysis, we determined the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a result of this ~~matter~~analysis, we recorded a tax reserve of $438 million during the year ended December 31, 2020 related to the application of the resulting methodologies as well as the different tax treatment applicable to dividends originally paid to the U.S. parent company by its foreign licensees, in reliance upon the Closing Agreement, that would be recharacterized as royalties in accordance with the Opinion and the Company’s analysis.

The Company’s conclusion that it is more likely than not the Company’s tax positions will ~~not have~~ultimately be sustained on appeal is unchanged as of March 31, 2023. However, we updated our calculation of the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a ~~material impact on its consolidated financial position, results~~result of ~~operations~~the application of the required probability analysis to these updated calculations and the accrual of interest through the current reporting period, we updated our tax reserve as of March 31, 2023 to $432 million.

While the Company strongly disagrees with the IRS’ positions and the portions of the Opinion affirming such positions, it is possible that some portion or ~~cash flows. However,~~all of the ~~ultimate outcome of disputes of this nature is uncertain, and if~~adjustment proposed by the IRS ~~were~~and sustained by the Tax Court could ultimately be upheld. In that event, the Company would likely be subject to ~~prevail on its assertions, the~~significant additional liabilities for tax ~~interest~~years 2007 through 2009, and ~~any potential penalties~~potentially also for subsequent years, which could have a material adverse impact on the ~~Company's~~Company’s financial position, results of operations and cash flows.

courts and the IRS were to decide to apply that methodology to subsequent years with consent of the federal courts. This impact would include taxes and interest accrued through December 31, 2022 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2022. The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the 2017 Tax Cuts and Jobs Act. The Company estimates that the potential aggregate incremental tax and interest liability could be approximately $14 billion as of December 31, 2022. Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended March 31, 2023 would increase the potential aggregate incremental tax and interest liability by approximately $400 million. Additionally, we currently project the continued application of the Tax Court Methodology in future years, assuming similar facts and circumstances as of December 31, 2022, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 percent.

The Company does not know when the Tax Court will issue its opinion regarding the effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil for the 2007 through 2009 tax years. After the Tax Court issues its opinion on the Company’s Brazilian licensee, the Company and the IRS will be provided time to agree on the tax impact of both opinions, after which the Tax Court would render a decision in the case. The Company will have 90 days thereafter to file a notice of appeal to the U.S. Court of Appeals for the Eleventh Circuit and pay the tax liability and interest related to the 2007 through 2009 tax years. The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years, which is included in the above estimate of the potential aggregate incremental tax and interest liability, would be approximately $5.4 billion (including interest accrued through March 31, 2023), plus any additional interest accrued through the time of payment. Some or all of this amount would be refunded if the Company were to prevail on appeal.

Risk Management Programs

The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of ~~claims; however,~~claims. However, we do use commercial insurance above our self-insured retentions to reduce the ~~Company's~~Company’s risk of catastrophic loss. Our reserves for the ~~Company's~~Company’s self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our ~~claim~~claims history. Our self-insurance reserves totaled ~~$514~~$198 million and ~~$527~~$199 million as of ~~September 29, 2017~~March 31, 2023 and December 31, ~~2016,~~2022, respectively.

NOTE 8: 10: OTHER COMPREHENSIVE INCOME

AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our ~~condensed~~ consolidated balance ~~sheets~~sheet as a component of The Coca-Cola ~~Company's shareowners'~~Company’s shareowners’ equity, which also includes our proportionate share of equity method ~~investees'~~investees’ AOCI. OCI attributable to noncontrolling interests is allocated to, and included in, our ~~condensed~~ consolidated balance ~~sheets~~sheet as part of the line item equity attributable to noncontrolling interests.

AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):


	March 31, 2023		December 31, 2022
Net foreign currency translation adjustments	$	(12,985)	$	(13,609)
Accumulated net gains (losses) on derivatives	(46)		24
Unrealized net gains (losses) on available-for-sale debt securities	(17)		(25)
Adjustments to pension and other postretirement benefit liabilities	(1,274)		(1,285)
Accumulated other comprehensive income (loss)	$	(14,322)	$	(14,895)

September 29,
2017
December 31, 2016
Foreign currency translation adjustments $ (8,271 ) $ (9,780 )
Accumulated derivative net gains (losses) (80 ) 314
Unrealized net gains (losses) on available-for-sale securities 470
305
Adjustments to pension and other benefit liabilities (1,962 ) (2,044 )
Accumulated other comprehensive income (loss) $ (9,843 ) $ (11,205 )

The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):

Nine Months Ended September 29, 2017

Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total
Consolidated net income $ 4,000
$ —
$ 4,000
Other comprehensive income:
Net foreign currency translation adjustments 1,509
2
1,511
Net gain (loss) on derivatives¹
(394 ) —
(394 )
Net change in unrealized gain (loss) on available-for-sale securities²
165
—
165
Net change in pension and other benefit liabilities³
82
—
82
Total comprehensive income $ 5,362
$ 2
$ 5,364


	Three Months Ended March 31, 2023
	Shareowners of The Coca-Cola Company		Noncontrolling Interests		Total
Consolidated net income	$	3,107	$	6	$	3,113
Other comprehensive income:
Net foreign currency translation adjustments	624		(75)		549
Net gains (losses) on derivatives1	(70)		—		(70)
Net change in unrealized gains (losses) on available-for-sale debt securities2	8		—		8
Net change in pension and other postretirement benefit liabilities	11		—		11

Total comprehensive income (loss)	$	3,680	$	(69)	$	3,611

¹Refer to Note 56 for additional information related to the net ~~gain~~gains or ~~loss~~losses on derivative ~~instruments designated and qualifying as cash flow hedging~~ instruments.

²Refer to Note 34 for additional information related to the net unrealized ~~gain~~gains or ~~loss~~losses on available-for-sale debt securities.


³	~~Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.~~

The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method ~~investees'~~investees’ OCI (in millions):


Three Months Ended March 31, 2023	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	437	$	(91)	$	346
Reclassification adjustments recognized in net income	101		—		101
Gains (losses) on intra-entity transactions that are of a long-term investment nature	292		—		292
Gains (losses) on net investment hedges arising during the period1	(154)		39		(115)

Net foreign currency translation adjustments	$	676	$	(52)	$	624
Derivatives:
Gains (losses) arising during the period	$	(76)	$	7	$	(69)
Reclassification adjustments recognized in net income	(1)		—		(1)
Net gains (losses) on derivatives1	$	(77)	$	7	$	(70)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	$	9	$	(3)	$	6
Reclassification adjustments recognized in net income	3		(1)		2
Net change in unrealized gains (losses) on available-for-sale debt securities2	$	12	$	(4)	$	8
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period	$	(5)	$	(2)	$	(7)
Reclassification adjustments recognized in net income	22		(4)		18
Net change in pension and other postretirement benefit liabilities	$	17	$	(6)	$	11
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	628	$	(55)	$	573

1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.

2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.


Three Months Ended September 29, 2017	Before-Tax Amount			Income Tax			After-Tax Amount
Three Months Ended April 1, 2022										Three Months Ended April 1, 2022	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:										Foreign currency translation adjustments:
Translation adjustments arising during the period	$	162		$	(174	)	$	(12	)	Translation adjustments arising during the period	$	1,324	$	(240)	$	1,084
Reclassification adjustments recognized in net income	(17		)	—			(17		)	Reclassification adjustments recognized in net income	200		—		200
Gains (losses) on intra-entity transactions that are of a long-term-investment nature	1,063			—			1,063
Gains (losses) on intra-entity transactions that are of a long-term investment nature										Gains (losses) on intra-entity transactions that are of a long-term investment nature	(670)		—		(670)
Gains (losses) on net investment hedges arising during the period¹	(553		)	211			(342		)	Gains (losses) on net investment hedges arising during the period1	349		(87)		262

Net foreign currency translation adjustments	655			37			692			Net foreign currency translation adjustments	$	1,203	$	(327)	$	876
Derivatives:										Derivatives:
Gains (losses) arising during the period	54			(19		)	35			Gains (losses) arising during the period	$	83	$	(21)	$	62
Reclassification adjustments recognized in net income	(207		)	76			(131		)	Reclassification adjustments recognized in net income	3		(1)		2
Net gains (losses) on derivatives¹	(153		)	57			(96		)	Net gains (losses) on derivatives1	$	86	$	(22)	$	64
Available-for-sale securities:
Available-for-sale debt securities:										Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	20			(17		)	3			Unrealized gains (losses) arising during the period	$	(46)	$	8	$	(38)
Reclassification adjustments recognized in net income	(4		)	2			(2		)	Reclassification adjustments recognized in net income	4		(1)		3
Net change in unrealized gain (loss) on available-for-sale securities²	16			(15		)	1
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period	(120		)	49			(71		)
Net change in unrealized gains (losses) on available-for-sale debt securities2										Net change in unrealized gains (losses) on available-for-sale debt securities2	$	(42)	$	7	$	(35)
Pension and other postretirement benefit liabilities:										Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period										Net pension and other postretirement benefit liabilities arising during the period	$	68	$	(4)	$	64
Reclassification adjustments recognized in net income	193			(73		)	120			Reclassification adjustments recognized in net income	28		(7)		21
Net change in pension and other benefit liabilities³	73			(24		)	49
Net change in pension and other postretirement benefit liabilities										Net change in pension and other postretirement benefit liabilities	$	96	$	(11)	$	85
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	591		$	55		$	646		Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	1,343	$	(353)	$	990

¹~~The carrying values of our investments exceeded their fair values as of September 29, 2017. Based on the length of time and the extent to~~

~~which the market values have been less than our cost basis; the financial condition and near-term prospects of the issuers; and our intent and~~

~~ability to retain the investments for a period of time sufficient to allow for any anticipated recovery in market value, management~~

~~determined that the declines in fair values were temporary in nature. Therefore, we did not record any impairment charges.~~

As of September 29, 2017, gross unrealized gains and losses on available-for-sale securities were $771 million and $56 million, respectively. Management assessed each of the available-for-sale securities that were in a gross unrealized loss position on an individual basis to determine if the decline in fair value was other than temporary. As a result of these assessments, management determined that the decline in fair value of these investments was temporary and did not record any impairment charges. We will continue to monitor these investments in future periods. Refer to Note 3 of Notes to Condensed Consolidated Financial Statements.

~~Other Assets~~

Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. Additionally, our Company advances payments to certain customers for distribution rights as well as to fund future marketing activities intended to generate profitable volume and we expense such payments over the periods benefited. Payments under these programs are generally capitalized and reported in the line items prepaid expenses and other assets or other assets, as appropriate, in our condensed consolidated balance sheets. When facts and circumstances indicate that the carrying value of these assets or asset groups may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting gross profit and cash flows. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value.

During the nine months ended September 29, 2017, the Company recorded an impairment charge of $19 million related to Coca-Cola Refreshments' ("CCR") other assets as a result of current year refranchising activities in North America and management's estimate of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. This charge was recorded in our Bottling Investments operating segment in the line item other operating charges in our condensed consolidated statement of income and was determined by comparing the fair value of the asset to its carrying value.

~~Property, Plant and Equipment~~

As of September 29, 2017, the carrying value of our property, plant and equipment, net of depreciation, was $8,306 million, or 9 percent of our total assets. Certain events or changes in circumstances may indicate that the recoverability of the carrying amount or remaining useful life of property, plant and equipment should be assessed, including, among others, the manner or length of time in which the Company intends to use the asset, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present and an impairment review is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of

methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe a hypothetical marketplace participant would use.

During the nine months ended September 29, 2017, the Company recorded impairment charges of $310 million related to CCR's property, plant and equipment as a result of current year refranchising activities in North America and management's estimate of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. These charges were recorded in our Bottling Investments operating segment in the line item other operating charges in our condensed consolidated statement of income and were determined by comparing the fair value of the assets to their carrying value. Refer to Note 14 of Notes to Condensed Consolidated Financial Statements.

~~Goodwill, Trademarks and Other Intangible Assets~~

Intangible assets are classified into one of three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. For intangible assets with definite lives, tests for impairment must be performed if conditions exist that indicate the carrying value may not be recoverable. For intangible assets with indefinite lives and goodwill, tests for impairment must be performed at least annually, or more frequently if events or circumstances indicate that an asset may be impaired.

The assessment of recoverability and the performance of impairment tests of intangible assets involve critical accounting estimates. These estimates require significant management judgment, include inherent uncertainties and are often interdependent; therefore, they do not change in isolation. Factors that management must estimate include, among others, the economic life of the asset, sales volume, pricing, cost of raw materials, delivery costs, inflation, cost of capital, marketing spending, foreign currency exchange rates, tax rates, capital spending and proceeds from the sale of assets. These factors are even more difficult to predict when global financial markets are highly volatile. The estimates we use when assessing the recoverability of intangible assets are consistent with those we use in our internal planning. When performing impairment tests, we estimate the fair values of the assets using management's best assumptions, which we believe would be consistent with what a hypothetical marketplace participant would use. Estimates and assumptions used in these tests are evaluated and updated as appropriate. The variability of these factors depends on a number of conditions, including uncertainty about future events, and thus our accounting estimates may change from period to period. If other assumptions and estimates had been used when these tests were performed, impairment charges could have resulted. As mentioned above, these factors do not change in isolation and, therefore, we do not believe it is practicable or meaningful to present the impact of changing a single factor. Furthermore, if management uses different assumptions or if different conditions exist in future periods, future impairment charges could result. Refer to the heading "Operations Review" below for additional information related to our present business environment. Certain factors discussed above are impacted by our current business environment and are discussed throughout this report, as appropriate.

Intangible assets acquired in recent transactions are naturally more susceptible to impairment, primarily due to the fact that they are recorded at fair value based on recent operating plans and macroeconomic conditions present at the time of acquisition. Consequently, if operating results and/or macroeconomic conditions deteriorate shortly after an acquisition, it could result in the impairment of the acquired assets. A deterioration of macroeconomic conditions may not only negatively impact the estimated operating cash flows used in our cash flow models but may also negatively impact other assumptions used in our analyses, including, but not limited to, the estimated cost of capital and/or discount rates. Additionally, as discussed above, in accordance with U.S. GAAP, we are required to ensure that assumptions used to determine fair value in our analyses are consistent with the assumptions that we believe a hypothetical marketplace participant would use. As a result, the cost of capital and/or discount rates used in our analyses may increase or decrease based on market conditions and trends, regardless of whether our Company's actual cost of capital has changed. Therefore, if the cost of capital and/or discount rates change, our Company may recognize an impairment of an intangible asset in spite of realizing actual cash flows that are approximately equal to, or greater than, our previously forecasted amounts.

We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our operating segments are subdivided into smaller geographic regions or territories that we sometimes refer to as "business units." These business units are also our reporting units. The Bottling Investments operating segment includes all Company-owned or consolidated bottling operations, regardless of geographic location, including CCR's bottling and associated supply chain operations in the United States and Canada. Generally, each Company-owned or consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination.

In order to test for goodwill impairment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. We typically use discounted cash flow models to determine the

~~fair value of a reporting unit. The assumptions used in these models are consistent with those we believe a hypothetical marketplace participant would use.~~

During the nine months ended September 29, 2017, the Company recorded impairment charges of $442 million related to certain intangible assets. These charges included $375 million related to goodwill and $33 million related to bottlers' franchise rights with indefinite lives. The impairment charges related to goodwill were determined by comparing the fair value of the reporting unit, based on Level 3 inputs, to its carrying value. As a result of these charges, the carrying value of CCR's goodwill is zero. The impairment charge related to bottlers' franchise rights with indefinite lives was determined by comparing the fair value of the assets, based on Level 3 inputs, to the current carrying value. These impairment charges were incurred primarily as a result of current year refranchising activities in North America and management's estimate of the proceeds that are expected to be received for the remaining bottling territories upon their refranchising. These charges were recorded in our Bottling Investments operating segment in the line item other operating charges in our condensed consolidated statement of income. Additionally, we recorded impairment charges related to Venezuelan intangible assets for the nine months ended September 29, 2017, of $34 million. The Venezuelan intangible assets were written down due to weaker sales and the volatility of foreign currency exchange rates resulting from continued political instability. These charges were recorded in Corporate in the line item other operating charges in our condensed consolidated statement of income and were determined by comparing the fair value of the assets, derived using discounted cash flow analyses, to the respective carrying values.

~~The Company did not record any significant impairment charges related to intangible assets during the three and nine months ended September 30, 2016.~~

If macroeconomic conditions worsen or our current financial projections are not achieved, it is possible that we may experience significant impairments of some of our intangible assets, including goodwill, which would require us to recognize impairment charges. On June 7, 2007, our Company acquired Energy Brands Inc., also known as glacéau, for approximately $4.1 billion. The total combined fair value of the various trademarks in the glacéau portfolio significantly exceeds the remaining combined carrying value of $2.9 billion as of September 29, 2017. However, the fair value of one of the individual trademarks in the portfolio currently approximates its carrying value. If the future operating results of this trademark do not support the current financial projections, or if macroeconomic conditions change causing the cost of capital and/or discount rate to increase without an offsetting increase in the operating results, it is likely that we would be required to recognize an additional impairment charge related to this trademark. Management will continue to monitor the fair value of our intangible assets in future periods.

OPERATIONS REVIEW

Sales of our ~~nonalcoholic~~ ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions.

Structural Changes, Acquired Brands and Newly Licensed Brands

In order to continually improve upon the ~~Company's~~Company’s operating performance, from time to time, we engage in buying and selling ownership interests in bottling partners and other manufacturing operations. In addition, we ~~also~~periodically acquire brands and their related operations or enter into license agreements for certain brands to supplement our beverage offerings. These items impact our operating results and certain key metrics used by management in assessing the ~~Company's~~Company’s performance.

Unit case volume growth is a key metric used by management to evaluate the ~~Company's~~Company’s performance because it measures demand for our products at the consumer level. The ~~Company's~~Company’s unit case volume represents the number of unit cases (or unit case equivalents) of Company beverage products directly or indirectly sold by the Company and its bottling partners to customers or consumers and, therefore, reflects unit case volume for both consolidated and unconsolidated bottlers. Refer to the heading ~~"Beverage Volume"~~“Beverage Volume” below.

Concentrate sales volume represents the amount of concentrates, syrups, ~~beverage bases,~~ source waters and powders/minerals (in all instances expressed in ~~equivalent~~ unit ~~cases)~~case equivalents) sold by, or used in finished products sold by, the Company to its bottling partners or other customers. For Costa non-ready-to-drink beverage products, concentrate sales volume represents the amount of beverages, primarily measured in number of transactions (in all instances expressed in unit case equivalents), sold by the Company to customers or consumers. Refer to the heading ~~"Beverage Volume"~~“Beverage Volume” below.

~~Our Bottling Investments operating segment and~~When we analyze our ~~other finished product operations typically generate~~ net operating revenues, by selling sparkling soft drinks and a variety of other beverages, such as juices, juice drinks, sports drinks, waters, teas and coffees, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. In addition, inwe generally consider the United States, we manufacture fountain syrups and sell them to fountain retailers such as restaurants and convenience stores who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. For these consolidated finished product operations, we recognize the associated concentratefollowing factors: (1) volume growth (concentrate sales volume ~~at the time the unit case~~ or unit case ~~equivalent is sold~~volume, as applicable); (2) changes in price, product and geographic mix; (3) foreign currency exchange rate fluctuations; and (4) acquisitions and divestitures (including structural changes as defined below), as applicable. Refer to the ~~customer. Our concentrate operations typically generate net operating revenues by selling~~heading “Net Operating Revenues” below. The Company sells concentrates and syrups to ~~authorized~~both consolidated and unconsolidated bottling partners. The ownership structure of our bottling partners impacts the timing of recognizing concentrate revenue and ~~canning~~

~~operations. For these~~ concentrate ~~operations,~~sales volume. When we sell concentrates or syrups to our consolidated bottling partners, we do not recognize the concentrate revenue or concentrate sales volume until the bottling partner has sold finished products manufactured from the concentrates or syrups to a third party. When we sell concentrates or syrups to our unconsolidated bottling partners, we recognize the concentrate revenue and concentrate sales volume when ~~we sell~~the concentrates ~~and~~or syrups are sold to the bottling partner. The subsequent sale of the finished products manufactured from the concentrates or syrups to a third party does not impact the ~~authorized~~timing of recognizing the concentrate revenue or concentrate sales volume. When we account for an unconsolidated bottling ~~and canning operations, and~~partner as an equity method investment, we eliminate the intercompany profit related to concentrate sales, to the extent of our ownership interest, until the equity method investee has sold finished products manufactured from the concentrates or syrups to a third party. We typically report unit case volume when finished products manufactured from the concentrates ~~and~~or syrups are sold to a third party, regardless of our ownership interest in the customer. When we analyze our net operating revenues we generally consider the following four factors: (1) volume growth (concentrate sales volume or unit case volume, as appropriate), (2) acquisitions and divestitures (including structural changes defined below), as applicable, (3) changes in price, product and geographic mix and (4) foreign currency fluctuations. Refer to the heading "Net Operating Revenues" below.bottling partner, if any.

We generally refer to acquisitions and divestitures of bottling ~~distribution or canning~~ operations ~~and consolidation or deconsolidation of bottling and distribution entities for accounting purposes~~ as ~~structural~~“structural changes,” which are a component of acquisitions and ~~divestitures ("structural changes").~~divestitures. Typically, structural changes do not impact the ~~Company's~~Company’s unit case volume or concentrate sales volume on a consolidated basis or at the geographic operating segment level. We ~~recognize~~report unit case volume for all sales of Company beverage products, regardless of our ownership interest in the bottling partner, if any. However, the unit case volume reported by our Bottling Investments operating segment is generally impacted by structural changes because it only includes the unit case volume of our consolidated bottling operations. Refer to Note 2 of Notes to ~~Condensed~~ Consolidated Financial Statements for additional information on the ~~Company's acquisitions and~~Company’s divestitures.

"“Acquired ~~brands"~~brands” refers to brands acquired during the past 12 months. Typically, the Company has not reported unit case volume or recognized concentrate sales volume related to acquired brands in periods prior to the closing of a transaction. Therefore, the unit case volume and concentrate sales volume ~~from the sale of these brands is~~related to an acquired brand are incremental to prior year volume. We generally do not ~~generally~~ consider ~~acquired brands~~the acquisition of a brand to be a structural ~~changes.~~change.

"“Licensed ~~brands"~~brands” refers to brands not owned by the Company but for which we hold certain rights, generally including, but not limited to, distribution rights, and from which we derive an economic benefit when ~~these brands~~the related products are ~~ultimately~~ sold. Typically, the Company has not reported unit case volume or recognized concentrate sales volume related to ~~these brands~~a licensed brand in periods prior to the beginning of the term of a license agreement. Therefore, in the year that ~~the licenses are~~a license agreement is entered into, the unit case volume and concentrate sales volume ~~from the sale of these brands is~~related to a licensed brand are incremental to prior year volume. We generally do not ~~generally~~ consider ~~newly licensed brands~~the licensing of a brand to be a structural ~~changes.~~change.

In ~~2017,~~July 2022, the Company ~~refranchised its bottling operations~~acquired certain brands in ~~China to the two local franchise bottlers.~~Asia Pacific. The impact of acquiring these ~~refranchising activities~~brands has been included in acquisitions and divestitures in our analysis of net operating revenues on a consolidated basis as well as for the Asia Pacific operating segment. Also, in August 2022, the Company acquired a controlling interest in a bottling operation in Malawi. The

impact of this acquisition has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for ~~our Asia Pacific and~~the Bottling Investments operating ~~segments.~~

~~During 2017 and 2016,~~segment. Additionally, in November 2022, the Company refranchised our bottling ~~territories~~operations in ~~North America that were previously managed by CCR to certain of our unconsolidated bottling partners.~~Cambodia. The impact of ~~these~~this refranchising ~~activities~~ has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for ~~our North America and~~the Bottling Investments and Asia Pacific operating segments.

In ~~addition, for non-Company-owned and licensed beverage products sold in the refranchised territories for which~~January 2023, the Company no longer reports unit case volume, we have eliminated the unit case volume from the base year when calculating 2017 versus 2016 volume growth rates on a consolidated basis as well as for the North America and Bottling Investments operating segments. Refer to the headings "Beverage Volume" and "Net Operating Revenues" below.

~~During 2016, the Company deconsolidated its South African~~refranchised our bottling operations ~~and disposed of its related equity method investment~~ in exchange for equity method investments in Coca-Cola Beverages Africa Proprietary Limited ("CCBA") and CCBA's South African subsidiary. As part of the transaction, the Company also acquired and licensed several brands.Vietnam. The impacts of the deconsolidation, the disposal of the related equity method investment and the new equity method investments have been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for our Europe, Middle East and Africa and Bottling Investments operating segments. The brands and licenses that the Company acquired impacted the Company's unit case volume and concentrate sales volume and therefore, in addition to being included as a structural change, they are also considered acquired brands. Refer to the headings "Beverage Volume" and "Net Operating Revenues" below.

During 2016, the Company also deconsolidated our German bottling operations as a result of their being combined to create Coca-Cola European Partners plc ("CCEP"). As a result of the transaction, the Company now owns an equity method investment in CCEP. Accordingly, the impact of ~~the deconsolidation and new equity method investment~~this refranchising has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for ~~our Europe, Middle East and Africa and~~the Bottling Investments operating segments. The Company also changed our funding arrangement with our bottling partners in China, which resulted in a reduction in net operating revenues with an offsetting reduction in direct marketing expense. The impact of the change in the arrangement has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for ourand Asia Pacific operating ~~segment. Refer to the headings "Beverage Volume" and "Net Operating Revenues" below.~~segments.

The Company sells concentrates and syrups to both consolidated and unconsolidated bottling partners. The ownership structure of our bottling partners impacts the timing of recognizing concentrate revenue and concentrate sales volume. When we sell concentrates or syrups to our consolidated bottling partners, we are not able to recognize the concentrate revenue or concentrate sales volume until the bottling partner has sold finished products manufactured from the concentrates or syrups to a third party or independent customer. When we sell concentrates or syrups to our unconsolidated bottling partners, we recognize the concentrate revenue and concentrate sales volume when the concentrates or syrups are sold to the bottling partner. The subsequent sale of the finished products manufactured from the concentrates or syrups to a customer does not impact the timing of recognizing the concentrate revenue or concentrate sales volume. When we account for an unconsolidated bottling partner as an equity method investment, we eliminate the intercompany profit related to these transactions until the equity method investee has sold finished products manufactured from the concentrates or syrups to a third party or independent customer.

The Company is currently pursuing certain transactions that, if completed, will be included as structural changes for the applicable periods. We intend to refranchise 100 percent of Company-owned bottling operations in the United States by the end of 2017. Additionally, on October 4, 2017, the Company and Anheuser-Busch InBev ("ABI") completed the transition of ABI's 54.5 percent majority interest in CCBA to the Company for $3.15 billion. We will account for CCBA as a discontinued operation.~~Refer to Note 16 of Notes to Condensed Consolidated Financial Statements for additional information.~~

Beverage Volume

We measure the volume of Company beverage products sold in two ways: (1) unit cases of finished products and (2) concentrate sales. As used in this report, ~~"unit case"~~“unit case” means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings);, with the exception of unit case equivalents for Costa non-ready-to-drink beverage products, which are primarily measured in number of transactions; and ~~"unit~~“unit case ~~volume"~~volume” means the number of unit cases (or unit case equivalents) of Company beverage products directly or indirectly sold by the Company and its bottling partners to ~~customers.~~customers or consumers. Unit case volume primarily consists of beverage products bearing Company trademarks. Also included in unit case volume are certain ~~products~~brands licensed to, or distributed by, our Company, and brands owned by Coca-Cola system bottlers for which our Company provides marketing support and from the sale of which we derive an economic benefit. In addition, unit case volume includes sales by certain joint ventures in which the Company has an ~~equity~~ownership interest. We believe unit case volume is one of the ~~measures~~indicators of the underlying strength of the Coca-Cola system because it measures ~~trends~~demand for our products at the consumer level. The unit case volume numbers used in this report are derived based on estimates received by the Company from its bottling partners and distributors. Concentrate sales volume represents the amount of concentrates, syrups, ~~beverage bases,~~ source waters and powders/minerals (in all instances expressed in ~~equivalent~~ unit ~~cases)~~case equivalents) sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers. For Costa non-ready-to-drink beverage products, concentrate sales volume represents the amount of beverages, primarily measured in number of transactions (in all instances expressed in unit case equivalents), sold by the Company to customers or consumers. Unit case volume and concentrate sales volume growth rates are not necessarily equal during any given period. Factors such as seasonality, ~~bottlers'~~bottlers’ inventory practices, supply point changes, timing of price increases, new product introductions and changes in product mix can ~~impact unit case volume and concentrate sales volume and can~~ create differences between unit case volume and concentrate sales volume growth rates. In addition to ~~the~~these items, ~~mentioned above,~~ the impact of unit case volume from certain joint ventures in which the Company has an ~~equity~~ownership interest, but to which the Company does not sell concentrates, syrups, ~~beverage bases~~source waters or ~~powders~~powders/minerals, may give rise to differences between unit case volume and concentrate sales volume growth rates.

Information about our volume growth worldwide and byfor each of our operating ~~segment~~segments is as follows:


		Percent Change 2023 versus 2022
	Three Months Ended March 31, 2023
		Unit Cases1,2,3			Concentrate Sales4
Worldwide		3	%		1	%
Europe, Middle East & Africa		(3)	%		2	%
Latin America		5			1
North America		—			(2)
Asia Pacific		10			—		6
Global Ventures		7			8
Bottling Investments		(1)		5	N/A

Percent Change 2017 versus 2016
Three Months Ended September 29, 2017 Nine Months Ended September 29, 2017

Unit Cases^1,2,3

Concentrate
Sales⁴

Unit Cases^1,2,3

Concentrate
Sales⁴

Worldwide —
— %
⁵
— % (1 )%
Europe, Middle East & Africa 1 % 4 % 2 % 3 %
⁸
Latin America (3 ) (4 ) (3 ) (4 )
North America —
2
⁶
—
1
⁹
Asia Pacific 3
3
⁷
2
3
¹⁰
Bottling Investments (53 ) N/A
(42 ) N/A

¹Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only.

²Geographic and Global Ventures operating segment data reflects unit case volume growth for all bottlers, both consolidated and unconsolidated, and distributors in the applicable geographic ~~areas, both consolidated and unconsolidated.~~areas. Global Ventures operating segment data also reflects unit case volume growth for Costa retail stores.

³Unit case volume percent change is based on average daily sales. Unit case volume growth based on average daily sales is computed by comparing the average daily sales in each of the corresponding periods. Average daily sales are the unit cases sold during the period divided by the number of days in the period.

²⁹

4Concentrate sales volume represents the amount of concentrates, syrups, ~~beverage bases,~~ source waters and powders/minerals (in all instances expressed in ~~equivalent~~ unit ~~cases)~~case equivalents) sold by, or used in finished beverages sold by, the Company to its bottling partners or other customers and is not based on average daily sales. For Costa non-ready-to-drink beverage products, concentrate sales volume represents the amount of beverages, primarily measured in number of transactions (in all instances expressed in unit case equivalents), sold by the Company to customers or consumers and is not based on average daily sales. Each of our ~~interim reporting periods,~~quarters, other than the fourth ~~interim reporting period,~~quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. As a result, the first quarter of ~~2017~~2023 had ~~two fewer days~~one less day when compared to the first quarter of ~~2016,~~2022, and the fourth quarter of ~~2017~~2023 will have one additional day when compared to the fourth quarter of ~~2016.~~2022.


⁵	~~After considering the impact of structural changes, worldwide concentrate sales volume for the three months ended September 29, 2017 grew 1 percent.~~

⁶5After considering the impact of structural changes, ~~concentrate sales~~unit case volume for ~~North America~~Bottling Investments for the three months ended ~~September 29, 2017~~March 31, 2023 grew 14 percent.


⁷	~~After considering the impact of structural changes, concentrate sales volume for Asia Pacific for the three months ended September 29, 2017 grew 2 percent.~~


⁸	~~After considering the impact of structural changes, concentrate sales volume for Europe, Middle East and Africa for the nine months ended September 29, 2017 grew 2 percent.~~


⁹	~~After considering the impact of structural changes, concentrate sales volume for North America for the nine months ended September 29, 2017 was even.~~

¹⁰6After considering the impact of acquisitions and structural changes, concentrate sales volume for Asia Pacific for the ~~nine~~three months ended ~~September 29, 2017 grew 1~~March 31, 2023 declined 2 percent.

Unit Case Volume

Although a significant portion of our ~~Company's~~Company’s net operating revenues is not based directly on unit case volume, we believe unit case volume performance is one of the ~~measures~~indicators of the underlying strength of the Coca-Cola system because it measures ~~trends~~demand for our products at the consumer level. The unit case volume for 2017 and 2016 reflects the impact of the transfer of distribution rights with respect to non-Company-owned brands that were previously licensed to us in North America bottling territories that have since been refranchised. The Company eliminated the unit case volume related to these structural changes from the base year when calculating the volume growth rates. Refer to the heading "Structural Changes, Acquired Brands and Newly Licensed Brands" above.

~~Three Months Ended September 29, 2017 versus Three Months Ended September 30, 2016~~

Unit case volume in Europe, Middle East and Africa ~~grew 1~~decreased 3 percent, which included a 30 percent decline in juice, value-added dairy and plant-based beverages, a 4 percent decline in sparkling flavors, and a 7 percent decline in water, sports, coffee and tea, partially offset by growth of 2 percent in Trademark Coca-Cola. The operating segment reported a decline in unit case volume of 7 percent in the Europe operating unit and a decline of 4 percent in both water, enhanced water and sports drinks and tea and coffee. Sparkling soft drinks volume was even primarily due to 12 percent growth in Coca-Cola Zero, offset by an 11 percent decline in Diet Coke. The group reported increases inthe Africa operating unit, case volume in the Central & Eastern Europe, Turkey & Caucasus Central Asia and Middle East & North Africa business units. The increases in these business units were partially offset by decreases in the Western Europe and West Africa business units.

~~In Latin America, unit case volume declined 3 percent, which reflected declines of 4 percent in sparkling soft drinks and 3 percent in water, enhanced water and sports drinks~~ partially offset by growth ~~in juice, dairy and plant-based beverages driven by incremental volume from the recently acquired AdeS brand~~ of ~~plant-based beverages. The group's volume decline reflected declines of 8 percent in the Latin Center business unit and~~ 7 percent in the ~~Brazil business~~Eurasia and Middle East operating unit. The decline in the Europe operating unit ~~as a result of continued macroeconomic challenges in these regions. The Mexico business unit declined 1 percent~~was due to ~~a 2 percent decline~~the suspension of the Company’s business in Russia.

~~sparkling soft drinks and a~~Unit case volume in Latin America increased 5 percent, ~~decline~~which included 10 percent growth in water, sports, coffee and tea, 3 percent growth in both Trademark Coca-Cola and ~~coffee partially offset by 7~~sparkling flavors, and 5 percent growth in juice, value-added dairy and plant-based beverages. The operating segment’s volume performance included 5 percent growth in Mexico and 6 percent growth in Brazil.

Unit case volume in North America was even, ~~reflecting even sparkling soft drinks volume, a 2~~which included 3 percent ~~decline~~growth in juice, value-added dairy and plant-based beverages ~~as well as a 2 percent decline in water, enhanced water~~ and sports drinks, offset by growth in energy drinks. The group's sparkling soft drinks volume included a 5 percent decline in Diet Coke, offset by 4 percent growth in Trademark Sprite and 2 percent growth in Trademark Fanta.

In Asia Pacific, unit case volume increased 3 percent, reflecting 5 percent growth in sparkling soft drinks and 4 percent growth in juice, dairy and plant-based beverages, partially offset by a 3 percent decline in water, enhanced water and sports drinks. Sparkling soft drinks volume included 8 percent growth in Trademark Coca-Cola, 3 percent growth in Trademark Fanta and 2 percent growth in Trademark Sprite. The group's volume reflects growth of 4 percent in the ASEAN business, 7 percent in the India & South West Asia business unit and 2 percent in the Greater China & Korea business unit. Unit case volume was even in the Japan business unit.

~~Unit case volume for Bottling Investments declined 53 percent. This decrease primarily reflects the North America refranchising activities and the refranchising of our Chinese bottling operations.~~

~~Nine Months Ended September 29, 2017 versus Nine Months Ended September 30, 2016~~

In Europe, Middle East and Africa, unit case volume grew 2 percent, including 1 point of growth from acquired brands, which were primarily water brands in Africa. The group's growth reflected an increase of 1 percent in sparkling soft drinks, an increase of 7 percent in water, enhanced water and sports drinks and a 10 percent increase in tea and coffee. These increases were partially offset by a decrease of 1 percent in juice, dairy and plant-based beverages. All business units within the group reported growth in unit case volume.

Unit case volume in Latin America declined 3 percent, which reflected a decline of 4 percent in sparkling soft drinks partially offset by growth in juice, dairy and plant-based beverages. The group's volume reflects declines of 13 percent in the Latin Center business unit and 9 percent in the Brazil business unit. These declines were partially offset by unit case volume growth of 2 percent in the Mexico business unit, which reflected 1 percent growth in both Trademark Coca-Cola and sparkling ~~soft drinks, 3 percent growth in water, enhanced water and sports drinks, and 10 percent growth in juice, dairy and plant-based beverages.~~

In North America, unit case volume was even, reflecting even volume for sparkling soft drinks and juice, dairy and plant-based beverages, growth in energy drinks and a 2 percent decline in water, enhanced water and sports drinks. The group's sparkling soft drinks unit case volume includedflavors, offset by a 4 percent decline in ~~Diet Coke, offset by 4 percent growth in both Trademark Sprite~~water, sports, coffee and ~~Trademark Fanta.~~tea.

Unit case volume in Asia Pacific ~~grew 2~~increased 10 percent, ~~reflecting an increase of 2 percent in sparkling soft drinks and 5~~which included 11 percent growth in sparkling flavors, 8 percent growth in Trademark Coca-Cola, 10 percent growth in water, sports, coffee and tea, and 16 percent growth in juice, value-added dairy and plant-based beverages. The ~~increase in sparkling soft drinks volume included 4 percent~~operating segment reported growth in ~~Trademark Coca-Cola~~unit case volume of 13 percent in the Greater China and Mongolia operating unit, 23 percent in the India and Southwest Asia operating unit and 1 percent ~~growth~~ in ~~Trademark Sprite. Unit case volume in our Greater China & Korea~~the ASEAN and ~~India &~~ South ~~West Asia business units grew 4 percent and 1 percent, respectively.~~Pacific operating unit. Unit case volume in the Japan ~~business~~and South Korea operating unit was even.

Unit case volume for Global Ventures increased 7 percent, driven by 2 percent growth in water, sports, coffee and tea along with growth in energy drinks, partially offset by a 4 percent decline in juice, value-added dairy and plant-based beverages.

Unit case volume for Bottling Investments ~~declined 42 percent. This decrease primarily reflects~~decreased 1 percent, which included the ~~North America~~impact of refranchising ~~activities~~our bottling operations in Cambodia and Vietnam and a decline in unit case volume in the ~~refranchising of our Chinese bottling operations.~~Philippines, partially offset by growth in unit case volume in India.

Concentrate Sales Volume

During the three months ended ~~September 29, 2017,~~March 31, 2023, worldwide concentrate sales volume increased 1 percent and unit case volume ~~and concentrate sales volume were even~~increased 3 percent compared to the three months ended ~~September 30, 2016. During the nine months ended September 29, 2017, worldwide unit case volume was even and concentrate sales volume declined~~April 1, percent compared to the nine months ended September 30, 2016. The difference between the consolidated unit case volume and concentrate sales volume growth rates during the nine months ended September 29, 2017, was primarily due to having two fewer days during the first quarter of 2017 when compared to the first quarter of 2016.2022. Concentrate sales volume growth is calculated based on the amount ~~of concentrate~~ sold during the reporting periods, which is impacted by the number of days. Conversely, unit case volume growth is calculated based on average daily sales, which is not impacted by the number of days in the reporting periods. The differences between concentrate sales volume and unit case volume growth rates for the operating segments were primarily due to the timing of concentrate shipments. In addition, the first quarter of 2023 had one less day when compared to the ~~impact~~first quarter of ~~two fewer days,~~2022, which also contributed to the differences between concentrate sales volume and unit case volume ~~and concentrate sales volume~~ growth rates inon a consolidated basis and for the individual operating segments during the three ~~and nine~~ months ended ~~September 29, 2017 were due to~~March 31, 2023. We expect the ~~timing of~~differences between concentrate ~~shipments, structural changes~~sales volume and ~~the impact of~~ unit case volume ~~from certain joint ventures in which~~growth rates to lessen over the ~~Company has an equity interest but to which~~remainder of the ~~Company does not sell concentrates, syrups, beverage bases or powders.~~year.

Net Operating Revenues

~~Three Months Ended September 29, 2017 versus Three Months Ended September 30, 2016~~

~~The Company's~~During the three months ended March 31, 2023, net operating revenues ~~decreased $1,555~~were $10,980 million, compared to $10,491 million during the three months ended April 1, 2022, an increase of $489 million, or 155 percent.

The following table illustrates, on a percentage basis, the estimated impact of ~~key~~the factors resulting in the increase (decrease) in net operating revenues on a consolidated basis and for each of our operating segments:


	Percent Change 2017 versus 2016											Percent Change 2023 versus 2022
	Volume¹		Acquisitions & Divestitures		Price, Product & Geographic Mix		Currency Fluctuations		Total			Volume1		Price, Product & Geographic Mix		Foreign Currency Fluctuations		Acquisitions & Divestitures2		Total
Consolidated	1	%	(18	)%	3	%	—	%	(15	)%	Consolidated	1	%	11	%	(6)	%	(1)	%	5	%
Europe, Middle East & Africa	4	%	—	%	1	%	1	%	6	%	Europe, Middle East & Africa	2	%	22	%	(13)	%	—	%	10	%
Latin America	(4	)	—		10		1		7		Latin America	1		18		(5)		—		14
North America	1		1		2		—		3		North America	(2)		11		—		—		9
Asia Pacific	2		—		1		(5	)	(2	)	Asia Pacific	(2)		5		(8)		2		(3)
Global Ventures											Global Ventures	8		(3)		(8)		—		(3)
Bottling Investments	(1	)	(53	)	4		—		(50	)	Bottling Investments	3		8		(9)		(7)		(5)

Note: Certain rows may not add due to rounding.

¹Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating segments and our Global Ventures operating segment (expressed in ~~equivalent~~ unit ~~cases)~~case equivalents) after considering the impact of ~~structural changes.~~acquisitions and divestitures, if any. For our Bottling Investments operating segment, this represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume computed by comparing the total sales (rather than the average daily sales) in each of the corresponding periods after considering the impact of structural ~~changes.~~changes, if any. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers ~~only.~~only after considering the impact of structural changes, if any. Refer to the heading ~~"Beverage Volume"~~“Beverage Volume” above.

2Includes structural changes, if any. Refer to the heading “Structural Changes, Acquired Brands and Newly Licensed Brands” above.

Refer to the heading ~~"Beverage Volume"~~“Beverage Volume” above for additional information related to changes in our unit case and concentrate sales volumes.

"Acquisitions and Divestitures" refers to acquisitions and divestitures of brands or businesses, some of which the Company considers to be structural changes. Refer to the heading "Structural Changes, Acquired Brands and Newly Licensed Brands" above for additional information related to the structural changes.

"“Price, product and geographic ~~mix"~~mix” refers to the change in net operating revenues caused by factors such as price changes, the mix of products and packages sold, and the mix of channels and geographic territories where the sales occurred. The impact of price, product and geographic mix is calculated by subtracting the change in net operating revenues resulting from volume increases or decreases, fluctuations in foreign currency exchange rates, and acquisitions and divestitures from the total change in net operating revenues. Management believes that providing investors with price, product and geographic mix enhances their understanding about the combined impact that the following items had on the Company’s net operating revenues: (1) pricing actions taken by the Company and, where applicable, our bottling partners; (2) changes in the mix of products and packages sold; (3) changes in the mix of channels where products were sold; and (4) changes in the mix of geographic territories where products were sold. Management uses this measure in making financial, operating and planning decisions and in evaluating the Company’s performance.

Price, product and geographic mix had ~~a 3~~an 11 percent favorable impact on our consolidated net operating revenues. Price, product and geographic mix was impacted by a variety of factors and events including, but not limited to, the following:

•Europe, Middle East and Africa — ~~favorably impacted as a result of~~favorable pricing initiatives, ~~product and package mix,~~including inflationary pricing in Türkiye, partially offset by unfavorable geographic mix;

•Latin America — favorable ~~price mix~~pricing initiatives, including inflationary pricing in ~~all four of the segment's business units~~Argentina, along with favorable channel and ~~the impact of inflationary environments in certain markets;~~package mix;

•North America — ~~favorably impacted as a result of~~favorable pricing initiatives and favorable channel, package and product ~~and package~~ mix;

•Asia Pacific — ~~favorably impacted as a result of~~favorable pricing initiatives, ~~product and package mix,~~ partially offset by unfavorable geographic mix;

•Global Ventures — unfavorable impact of no longer receiving COVID-related incentives in the current year, partially offset by favorable channel mix, primarily due to the favorable performance of Costa in the United Kingdom and China; and

•Bottling Investments — ~~favorably impacted as a result of~~favorable pricing initiatives ~~and product~~across most markets, partially offset by unfavorable geographic mix.

The favorable channel and package mix in ~~North America.~~

The impact of fluctuations in foreign currency exchange rates on our consolidated net operating revenues was even. This impact was due to a stronger U.S. dollar compared to certain foreign currencies, including the U.K. pound sterling, Japanese yen and Argentine peso, which had an unfavorable impact on our Europe, Middle East and Africa, Asia Pacific and Latin Americaall applicable operating segments offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro, South African rand, Australian dollar, Mexican peso, and Brazilian real, which had a favorable impact on our Europe, Middle East and Africa, Asia Pacific and Latin America operating segments. Refer to the heading "Liquidity, Capital Resources and Financial Position — Foreign Exchange" below.

~~Nine Months Ended September 29, 2017 versus Nine Months Ended September 30, 2016~~

~~The Company's net operating revenues decreased $4,556 million, or 14 percent.~~

~~The following table illustrates, on a percentage basis, the estimated impact of key factors resulting in the increase (decrease) in net operating revenues for each of our operating segments:~~

Percent Change 2017 versus 2016

Volume¹

Acquisitions & Divestitures
Price, Product & Geographic Mix
Currency Fluctuations
Total
Consolidated (1 )% (15 )% 3 % (1 )% (14 )%
Europe, Middle East & Africa 2 % (1 )% 2 % (3 )% — %
Latin America (4 ) —
7
—
3
North America —
1
3
—
4
Asia Pacific 1
—
—
(3 ) (3 )
Bottling Investments (3 ) (40 ) 2
—
(41 )

~~Note: Certain rows may not add due to rounding.~~

¹Represents the percent change in net operating revenues attributable to the increase (decrease) in concentrate sales volume for our geographic operating segments (expressed in equivalent unit cases) after considering the impact of structural changes. For our Bottling Investments operating segment, this represents the percent change in net operating revenues attributable to the increase (decrease) in unit case volume after considering the impact of structural changes. Our Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only. Refer to the heading "Beverage Volume" above.

~~Refer to the heading "Beverage Volume" above for additional information related to changes in our unit case and concentrate sales volumes.~~

"Price, product and geographic mix" refers to the change in net operating revenues caused by factors such as price changes, the mix of products and packages sold, and the mix of channels and geographic territories where the sales occurred.

~~Price, product and geographic mix had a 3 percent favorable impact on our consolidated net operating revenues. Price, product and geographic mix~~ was ~~impacted by a variety of factors and events including, but not limited to, the following:~~

~~Europe, Middle East and Africa — favorably impacted as~~primarily a result of ~~pricing initiatives, product and package mix, partially offset by geographic mix;~~the continued recovery from the COVID-19 pandemic in away-from-home channels in many markets in the current year.

~~Latin America — favorable price mix in all four of the segment's business units and the impact of inflationary environments in certain markets, partially offset by geographic mix;~~

~~North America — favorably impacted as a result of pricing initiatives and product and package mix;~~

~~Asia Pacific — favorable product and package mix, offset by geographic mix; and~~

~~Bottling Investments — favorably impacted as a result of pricing initiatives and product and package mix in North America.~~

Fluctuations in foreign currency exchange rates decreased our consolidated net operating revenues by 16 percent. This unfavorable impact was primarily due to a stronger U.S. dollar compared to certain foreign currencies, including the ~~U.K.~~Argentine peso, British pound sterling, South African rand, Indian rupee and Japanese yen, ~~Argentine peso and Mexican peso,~~ which had an unfavorable impact on our Latin America; Global Ventures; Europe, Middle East and ~~Africa,~~Africa; Bottling Investments; and Asia Pacific ~~and Latin America~~ operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the ~~euro, South African rand, Australian dollar and Brazilian real,~~Mexican peso, which had a favorable impact on our ~~Europe, Middle East and Africa, Asia Pacific and~~ Latin America operating ~~segments.~~segment. Refer to the heading ~~"Liquidity,~~“Liquidity, Capital Resources and Financial Position — Foreign ~~Exchange"~~Exchange” below.

“Acquisitions and divestitures” generally refers to acquisitions and divestitures of brands or businesses, some of which the Company considers to be structural changes. The impact of acquisitions and divestitures is the difference between the change in net operating revenues and the change in what our net operating revenues would have been if we removed the net operating revenues associated with an acquisition or a divestiture from either the current year or the prior year, as applicable. Management believes that quantifying the impact that acquisitions and divestitures had on the Company’s net operating revenues provides investors with useful information to enhance their understanding of the Company’s net operating revenue performance by improving their ability to compare our period-to-period results. Management considers the impact of acquisitions and divestitures when evaluating the Company’s performance. Refer to the heading “Structural Changes, Acquired Brands and Newly Licensed Brands” above for additional information related to acquisitions and divestitures.

Net operating revenue growth rates are impacted by sales volume; ~~acquisitions and divestitures;~~ price, product and geographic mix; ~~and~~ foreign currency ~~fluctuations.~~exchange rate fluctuations; and acquisitions and divestitures. The size and timing of acquisitions and divestitures are not consistent from period to period. ~~The Company currently expects acquisitions and divestitures to have an 18 percent unfavorable impact on 2017 full year net operating revenues.~~ Based on current spot rates and our hedging coverage in place, we expect ~~currencies~~foreign currency exchange rate fluctuations will have ~~a slight favorable~~an unfavorable impact on our full year 2023 net operating ~~revenues in the fourth quarter of 2017.~~

revenues.

Gross Profit Margin

AsGross profit margin is a ~~result of our finished goods operations, which are primarily included in our North America and Bottling Investments~~ratio calculated by dividing gross profit by net operating ~~segments, the following inputs represent a substantial portion of the Company's total cost of goods sold: (1) sweeteners, (2) metals, (3) juices and (4)~~ ~~polyethylene terephthalate ("PET"). The Company enters into hedging activities related to certain commodities in order to mitigate a portion of the price risk associated~~revenues. Management believes gross profit margin provides investors with forecasted purchases. Many of the derivative financial instruments used by the Company to mitigate the risk associated with these commodity exposures, including any related foreign currency exposure, do not qualify for hedge accounting. As a result, the changes in fair value of these derivative instruments have been, and will continue to be, included as a component of net income in each reporting period. During the three and nine months ended September 29, 2017, the Company recorded a net loss of $15 million and a net gain of $13 million, respectively, in the line item cost of goods sold in our condensed consolidated statement of incomeuseful information related to the ~~changes~~profitability of our business prior to considering all of the selling, general and administrative expenses and other operating charges incurred. Management uses this measure in making financial, operating and planning decisions and in evaluating the ~~fair value of these derivative instruments. Refer to Note 5 of Notes to Condensed Consolidated Financial Statements.~~Company’s performance.

Our gross profit margin ~~increased~~decreased to ~~62.6~~60.7 percent for the three months ended ~~September 29, 2017,~~March 31, 2023, compared to ~~61.1~~61.0 percent for the three months ended ~~September 30, 2016.~~April 1, 2022. The ~~increase~~decrease was primarily due to the impact of acquisitions and divestitures, partially offset by timing of commodity costs favorability in the prior year. Our gross profit margin increased to 62.1 percent for the nine months ended September 29, 2017, compared to 61.0 percent for the nine months ended September 30, 2016. The increase was primarily due to the impact of acquisitions and divestitures, partially offset by the unfavorable impact of foreign currency exchange rate ~~fluctuations. Refer~~fluctuations and increased commodity costs, partially offset by the impact of favorable pricing initiatives, favorable channel and package mix, and structural changes. We expect commodity costs to ~~Note 2~~continue to have an unfavorable impact on our gross profit margin during the remainder of ~~Notes~~2023, and we will continue to ~~Condensed Consolidated Financial Statements for additional information related~~proactively take actions in an effort to ~~acquisitions and divestitures.~~mitigate the impact of these incremental costs.

Selling, General and Administrative Expenses

The following table sets forth the ~~significant~~ components of selling, general and administrative expenses (in millions):

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016
Stock-based compensation expense $ 53
$ 72
$ 167
$ 191
Advertising expenses 1,018
1,157
2,901
3,062
Selling and distribution expenses¹
794
1,253
2,713
4,004
Other operating expenses 1,338
1,527
3,879
4,425
Total $ 3,203
$ 4,009
$ 9,660
$ 11,682

¹~~Includes operating expenses as well as general and administrative expenses primarily related to our Bottling Investments operating segment.~~


	Three Months Ended
		March 31, 2023		April 1, 2022
Selling and distribution expenses		$	654	$	655
Advertising expenses		1,065		980
Stock-based compensation expense		58		87
Other operating expenses		1,408		1,245
Selling, general and administrative expenses		$	3,185	$	2,967

During the three ~~and nine~~ months ended ~~September 29, 2017,~~March 31, 2023, selling, general and administrative expenses ~~decreased $806~~increased $218 million, or 207 percent, ~~and $2,022 million, or 17 percent, respectively,~~ versus the prior ~~year comparable periods.~~year. The increase was primarily due to increased marketing spending and operating expenses, partially offset by a decrease in stock-based compensation expense. During the three months ended ~~September 29, 2017, the impact of~~March 31, 2023, foreign currency exchange rate fluctuations ~~on total selling, general and administrative expenses was even. During the nine months ended September 29, 2017, fluctuations in foreign currency exchange rates~~ decreased ~~total~~ selling, general and administrative expenses by 15 percent.

~~The decrease in selling and distribution expenses and advertising expenses during the three and nine months ended September 29, 2017 reflects the impact~~As of divestitures. Additionally, the decrease in selling and distribution expenses and advertising expenses during the nine months ended September 29, 2017, was impacted by having two fewer days during the first quarter of 2017 when compared to the first quarter of 2016. Advertising expenses during the nine months ended September 29, 2017 also decreased 1 percent as a result of foreign currency exchange rate fluctuations. The decrease in other operating expenses during the three months ended September 29, 2017 reflects timing of expenses as well as savings from our productivity and reinvestment initiatives. The decrease in other operating expenses during the nine months ended September 29, 2017 reflects the impact of fluctuations in foreign currency exchange rates, timing of expenses and savings from our productivity and reinvestment initiatives. Foreign currency exchange rate fluctuations have a more significant impact on both advertising and other operating expenses as compared to our selling and distribution expenses since they are generally transacted in local currency. Our selling and distribution expenses are primarily related to our Company-owned bottling operations, of which the majority of expenses are attributable to CCR and are primarily denominated in U.S. dollars. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information related to divestitures.

~~During the nine months ended September 29, 2017, the Company contributed $88 million to our pension plans, and~~March 31, 2023, we anticipate making additional contributions of approximately $85 million to our pension plans during the remainder of 2017. During the year ended December 31, 2016, the Company's total pension expense related to defined benefit plans was $238 million, which primarily included $86had $428 million of ~~net periodic benefit cost and $155 million of settlement charges and special termination benefits. We expect our total 2017 pension expense to be $350 million, which includes $27 million of net~~

periodic benefit cost and $323 million of estimated settlement charges, curtailment charges and special termination benefits. During the nine months ended September 29, 2017, we have incurred $251 million of pension expense, which includes $27 million of net periodic benefit cost and $224 million of settlement charges, curtailment charges and special termination benefits. The decrease in 2017 expected net periodic benefit cost is due to favorable asset performance in 2016 compared to our expected return, partially offset by a decrease in the expected long-term rate of return on assets for the U.S. plans and a decrease in the weighted-average discount rate.

~~As of September 29, 2017, we had $240 million of~~ total unrecognized compensation cost related to nonvested stock-based compensation ~~arrangements~~awards granted under our plans, which we expect to recognize over a weighted-average period of ~~1.3 years~~2.1 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards.

Other Operating Charges

Other operating charges incurred by operating segment and Corporate were as follows (in millions):


	Three Months Ended				Nine Months Ended					Three Months Ended
	September 29, 2017		September 30, 2016		September 29, 2017		September 30, 2016				March 31, 2023		April 1, 2022
Europe, Middle East & Africa	$	6	$	2	$	2	$	6	Europe, Middle East & Africa		$	—	$	(1)
Latin America	2		75		3		74		Latin America		—		—
North America	47		22		131		80		North America		18		(17)
Asia Pacific	1		—		4		1		Asia Pacific		—		—
Global Ventures									Global Ventures		—		—
Bottling Investments	229		95		1,092		479		Bottling Investments		—		—
Corporate	75		28		259		190		Corporate		93		46
Total	$	360	$	222	$	1,491	$	830	Total		$	111	$	28

During the three months ended ~~September 29, 2017,~~March 31, 2023, the Company recorded other operating charges of ~~$360~~$111 million. These charges primarily consisted of $213 million related to costs incurred to refranchise certain of our North America bottling operations. Costs related to refranchising include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. In addition, other operating charges included $129$62 million related to the ~~Company's~~remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $27 million related to the Company’s productivity and reinvestment program and $18 million related to ~~tax litigation expense.~~ the restructuring of our North America operating unit. In addition, other operating charges included $4 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021.

During the three months ended April 1, 2022, the Company recorded other operating charges of $28 million. These charges primarily consisted of $22 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $10 million related to the Company’s productivity and reinvestment program and $2 million related to the restructuring of our manufacturing operations in the United States. These charges were partially offset by a net gain of $5 million, which included the reimbursement of distributor termination fees for BodyArmor recorded in 2021 partially offset by various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, and income of $1 million related to the Company’s strategic realignment initiatives primarily as a result of a revision to estimated severance costs accrued in 2021.

Refer to Note 1113 of Notes to ~~Condensed~~ Consolidated Financial Statements for additional information on the ~~Company's productivity, integration and~~Company’s restructuring initiatives. Refer to Note 1516 of Notes to ~~Condensed~~Consolidated Financial Statements for additional information on the fairlife acquisition. Refer to Note 17 of Notes to Consolidated Financial Statements for the impact these charges had on our operating ~~segments.~~segments and Corporate.

During the nine months ended September 29, 2017, the Company recorded other operating charges of $1,491 million. These charges primarily consisted of $737 million of CCR asset impairments and $355 million related to the Company's productivity and reinvestment program. In addition, other operating charges included $314 million related to costs incurred to refranchise certain of our bottling operations, $43 million related to tax litigation expense and $34 million related to impairments of Venezuelan intangible assets. Refer to Note 1 of Notes to Condensed Consolidated Financial Statements for additional information about the Venezuelan intangible assets and Note 14 of Notes to Condensed Consolidated Financial Statements for information on how the Company determined the asset impairment charges. Refer to Note 11 of Notes to Condensed Consolidated Financial Statements for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 of Notes to Condensed Consolidated Financial Statements for the impact these charges had on our operating segments.

During the three months ended September 30, 2016, the Company incurred other operating charges of $222 million. These charges primarily consisted of a charge of $76 million due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates, charges of $73 million related to costs incurred to refranchise certain of our North America bottling territories, and charges of $59 million due to the Company's productivity and reinvestment program. Refer to Note 1 of Notes to Condensed Consolidated Financial Statements for additional information on the Venezuelan exchange rates, Note 10 of Notes to Condensed Consolidated Financial Statements for additional information on the costs related to the North America refranchising and Note 11 of Notes to Condensed Consolidated Financial Statements for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 of Notes to Condensed Consolidated Financial Statements for the impact these charges had on our operating segments.

During the nine months ended September 30, 2016, the Company incurred other operating charges of $830 million. These charges primarily consisted of $187 million due to the Company's productivity and reinvestment program, $240 million due to the integration of our German bottling operations and $170 million related to costs incurred to refranchise certain of our North

America bottling territories. The Company also recorded a charge of $100 million related to a cash contribution we made to The Coca-Cola Foundation, a charge of $76 million due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates and charges of $37 million related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to Note 11 of Notes to Condensed Consolidated Financial Statements for additional information on the Company's productivity, integration and restructuring initiatives, Note 10 of Notes to Condensed Consolidated Financial Statements for additional information on costs related to the North America refranchising and Note 1 of Notes to Condensed Consolidated Financial Statements for additional information on the Venezuelan exchange rates. Refer to Note 15 of Notes to Condensed Consolidated Financial Statements for the impact these charges had on our operating segments.

~~Productivity and Reinvestment Program~~

In February 2012, the Company announced a productivity and reinvestment program designed to further enable our efforts to strengthen our brands and reinvest our resources to drive long-term profitable growth. This program is focused on the following initiatives: global supply chain optimization; global marketing and innovation effectiveness; operating expense leverage and operational excellence; data and information technology systems standardization; and the integration of Coca-Cola Enterprises Inc.'s former North America bottling operations ("Old CCE").

In February 2014, the Company announced the expansion of our productivity and reinvestment program to drive incremental productivity that will primarily be redirected into increased media investments. Our incremental productivity goal consists of two relatively equal components. First, we will expand savings through global supply chain optimization, data and information technology systems standardization, and resource and cost reallocation. Second, we will increase the effectiveness of our marketing investments by transforming our marketing and commercial model to redeploy resources into more consumer-facing marketing investments to accelerate growth.

In October 2014, the Company announced that we were further expanding our productivity and reinvestment program and extending it through 2019. The expansion of the productivity initiatives will focus on four key areas: restructuring the Company's global supply chain; implementing zero-based work, an evolution of zero-based budget principles, across the organization; streamlining and simplifying the Company's operating model; and further driving increased discipline and efficiency in direct marketing investments. The Company expects that the expanded productivity initiatives will generate an incremental $2.0 billion in annualized productivity. This productivity will enable the Company to fund marketing initiatives and innovation required to deliver sustainable net revenue growth and will also support margin expansion and increased returns on invested capital over time. We expect to achieve total annualized productivity of approximately $3.0 billion by 2019 as a result of the initiatives implemented under the 2014 expansions of the program.

In April 2017, the Company announced that we were expanding the current productivity and reinvestment program, with planned initiatives that are expected to generate an incremental $800 million in annualized savings by 2019. We expect to achieve these savings through additional efficiencies in both our supply chain and our marketing expenditures as well as the transition to a new, more agile operating model to enable growth. Under this operating model, our business units will be supported by an expanded enabling services organization and a corporate center focused on a few strategic initiatives, policy and governance. The expanded enabling services organization will focus on both simplifying and standardizing key transactional processes and providing support to business units through global centers of excellence. The Company has incurred total pretax expenses of $2,763 million related to this program since it began in 2012. Refer to Note 11 of Notes to Condensed Consolidated Financial Statements for additional information.

~~Integration of Our German Bottling Operations~~

In 2008, the Company began the integration of our German bottling operations acquired in 2007. The Company incurred total pretax expenses of $1,367 million as a result of this initiative, primarily related to involuntary terminations, including expenses of $240 million incurred during the nine months ended September 30, 2016. During the year ended December 31, 2016, the Company deconsolidated our German bottling operations.

Operating Income and Operating Margin

Information about our operating income contribution by operating segment and Corporate on a percentage basis is as follows:


	Three Months Ended
		March 31, 2023		April 1, 2022
Europe, Middle East & Africa		33.7	%	29.6	%
Latin America		25.4		22.3
North America		30.7		31.0
Asia Pacific		16.7		19.5
Global Ventures		1.5		1.5
Bottling Investments		4.1		5.7
Corporate		(12.1)		(9.6)
Total		100.0	%	100.0	%

Operating margin is a ratio calculated by dividing operating income by net operating revenues. Management believes operating margin provides investors with useful information related to the profitability of our business after considering all of the selling, general and administrative expenses and other operating charges incurred. Management uses this measure in making financial, operating and planning decisions and in evaluating the Company’s performance.

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016
Europe, Middle East & Africa 44.2 % 40.3 % 46.7 % 39.8 %
Latin America 26.6
19.2
26.3
20.2
North America 30.5
29.3
31.8
27.3
Asia Pacific 27.2
25.7
29.7
26.0
Bottling Investments (10.3 ) 5.4
(15.9 ) 3.1
Corporate (18.2 ) (19.9 ) (18.6 ) (16.4 )
Total 100.0 % 100.0 % 100.0 % 100.0 %

Information about our operating margin on a consolidated basis and byfor each of our operating ~~segment~~segments and Corporate is as follows:


	Three Months Ended
		March 31, 2023		April 1, 2022
Consolidated		30.7	%	32.5	%
Europe, Middle East & Africa		62.0	%	60.6	%
Latin America		61.6		62.6
North America		26.5		29.4
Asia Pacific		47.5		53.9
Global Ventures		7.2		6.9
Bottling Investments		7.1		9.5
Corporate		*		*

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016
Consolidated 23.3 % 21.4 % 22.2 % 22.4 %
Europe, Middle East & Africa 47.8 % 49.4 % 51.2 % 54.0 %
Latin America 55.8
45.9
56.9
52.8
North America 28.0
40.1
31.6
41.6
Asia Pacific 42.9
44.3
48.2
49.5
Bottling Investments (9.0 ) 2.6
(10.6 ) 1.4

~~Three Months Ended September 29, 2017 versus Three Months Ended September 30, 2016~~

Operating income for the three months ended September 29, 2017, was unfavorably impacted by the refranchising of bottling territories in North America and China, which unfavorably impacted our Bottling Investments operating segment. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on North America and China refranchising.* Calculation is not meaningful.

During the three months ended ~~September 29, 2017,~~March 31, 2023, operating income was $3,367 million, compared to $3,405 million during the three months ended April 1, 2022, a decrease of $38 million, or 1 percent. The decrease was driven by an unfavorable foreign currency exchange rate impact; higher other operating charges; and higher selling, general and administrative expenses. These items were partially offset by favorable pricing initiatives, concentrate sales volume growth of 1 percent, and favorable channel and package mix.

During the three months ended March 31, 2023, fluctuations in foreign currency exchange rates unfavorably impacted consolidated operating income by 28 percent due to a stronger U.S. dollar compared to certain foreign currencies, including the ~~U.K. pound sterling,~~Argentine peso, Zimbabwean dollar, Turkish lira, euro and Japanese yen, ~~and Argentine peso,~~ which had an unfavorable impact on our Latin America; Europe, Middle East and ~~Africa,~~Africa; and Asia Pacific and Latin America operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the euro, South African rand, Australian dollar, Mexican peso and Brazilian real, which had a favorable impact on our Europe, Middle East and Africa, Asia Pacific and Latin America operating segments. Refer to the heading "Liquidity, Capital Resources and Financial Position — Foreign Exchange" below.

The Company's Europe, Middle East and Africa segment reported operating income of $936 million and $914 million for the three months ended September 29, 2017 and September 30, 2016, respectively. Operating income for the segment reflects concentrate sales volume growth of 4 percent, favorable product mix and a favorable foreign currency exchange rate impact of 1 percent.

Latin America reported operating income of $563 million and $435 million for the three months ended September 29, 2017 and September 30, 2016, respectively. Operating income for the segment reflects favorable price and product mix, a favorable foreign currency exchange rate impact of 1 percent and a reduction in other operating charges.

Operating income for North America for the three months ended September 29, 2017 and September 30, 2016, was $646 million and $666 million, respectively. The decrease in operating income was driven by the timing of commodity cost favorability in the prior year and higher other operating charges partially offset by positive price and product mix.

Asia Pacific's operating income for the three months ended September 29, 2017 and September 30, 2016, was $577 million and $583 million, respectively. Operating income for the segment reflects favorable product mix offset by geographic mix and an unfavorable foreign currency exchange rate impact of 7 percent.

Operating loss for our Bottling Investments segment for the three months ended September 29, 2017, was $217 million compared to operating income of $124 million for the three months ended September 30, 2016. The segment was unfavorably

~~impacted by acquisitions and divestitures, partially offset by a 1 percent favorable impact due to fluctuations in foreign currency exchange rates.~~

Corporate's operating loss for the three months ended September 29, 2017 and September 30, 2016, was $385 million and $451 million, respectively. Operating loss in 2017 was favorably impacted by lower expenses primarily resulting from productivity initiatives, partially offset by an increase in other operating charges.

~~Nine Months Ended September 29, 2017 versus Nine Months Ended September 30, 2016~~

Operating income for the nine months ended September 29, 2017, was unfavorably impacted by two fewer days in the first quarter of 2017 when compared to the first quarter of 2016. During the nine months ended September 29, 2017, the Company's operating income was also unfavorably impacted by the refranchising of bottling territories in North America and China, which unfavorably impacted our Bottling Investments operating segment. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on North America and China refranchising.

During the nine months ended September 29, 2017, fluctuations in foreign currency exchange rates unfavorably impacted consolidated operating income by 3 percent due to a stronger U.S. dollar compared to certain foreign currencies, including the U.K. pound sterling, Japanese yen, Argentine peso and Mexican peso, which had an unfavorable impact on our Europe, Middle East and Africa, Asia Pacific and Latin America operating segments. The unfavorable impact of a stronger U.S. dollar compared to the currencies listed above was partially offset by the impact of a weaker U.S. dollar compared to certain other foreign currencies, including the ~~euro, South African rand, Australian dollar and Brazilian real,~~Mexican peso, which had a favorable impact on our ~~Europe, Middle East and Africa, Asia Pacific and~~ Latin America operating ~~segments.~~segment. Refer to the heading ~~"Liquidity,~~“Liquidity, Capital Resources and Financial Position — Foreign ~~Exchange"~~Exchange” below.

The ~~Company's~~ Europe, Middle East and Africa operating segment reported operating income of ~~$2,884~~$1,135 million and ~~$2,897~~$1,007 million for the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022, respectively. ~~Operating~~The increase in operating income ~~for the segment reflects~~was primarily driven by concentrate sales volume growth of 2 percent and favorable pricing initiatives, partially offset by an unfavorable foreign currency exchange rate impact of 316 percent and ~~unfavorable geographic mix, partially offset by concentrate sales volume growth and favorable product mix.~~higher commodity costs.

Latin America reported operating income of ~~$1,625~~$853 million and ~~$1,470~~$760 million for the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022, respectively. ~~Operating~~The increase in operating income ~~for the segment reflects~~was primarily driven by concentrate sales volume growth of 1 percent, favorable ~~price~~pricing initiatives, and ~~product~~favorable channel and package mix, partially offset by increased marketing spending, higher commodity costs and ~~a reduction in other operating charges.~~an unfavorable foreign currency exchange rate impact of 6 percent.

Operating income for North America for the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022 was ~~$1,967~~$1,033 million and ~~$1,982~~$1,056 million, respectively. The decrease in operating income was primarily ~~due to~~driven by a decline in concentrate sales volume of 2 percent, higher other operating charges, ~~timing~~higher commodity costs and increased marketing spending, partially offset by favorable pricing initiatives and favorable channel, package and product mix.

Asia Pacific’s operating income for the three months ended March 31, 2023 and April 1, 2022 was $563 million and $664 million, respectively. The decrease in operating income was primarily driven by an unfavorable foreign currency exchange rate impact of 8 percent, a decline in concentrate sales volume of 2 percent, higher commodity ~~cost favorability in~~costs and higher operating expenses, partially offset by favorable pricing initiatives and the ~~prior year~~impact of structural changes.

Global Ventures’ operating income for the three months ended March 31, 2023 and April 1, 2022 was $51 million and $51 million, respectively. Operating income for the three months ended March 31, 2023 was impacted by concentrate sales volume growth of 8 percent and lower operating expenses. These favorable impacts were offset by the impact of higher commodity costs and an unfavorable foreign currency exchange rate impact of 1 percent.

~~Asia Pacific's~~Bottling Investments’ operating income for the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022 was ~~$1,835~~$139 million and ~~$1,892~~$193 million, respectively. ~~Operating~~The decrease in operating income ~~for the segment reflects~~was primarily driven by an unfavorable foreign currency exchange rate impact of 57 percent and ~~unfavorable geographic mix.~~the refranchising of our bottling operations in Vietnam and Cambodia, partially offset by unit case volume growth of 3 percent and favorable pricing initiatives.

Operating loss for our Bottling Investments segment for the nine months ended September 29, 2017, was $979 million compared to operating income of $222 million for the nine months ended September 30, 2016. The segment was unfavorably impacted by acquisitions and divestitures and $737 million of asset impairment charges related to CCR.

~~Corporate's~~Corporate’s operating loss for the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022 was ~~$1,152~~$407 million and ~~$1,192~~$326 million, respectively. Operating loss in ~~2017 was favorably impacted by lower expenses resulting from productivity initiatives~~2023 increased primarily as a result of higher other operating charges due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition and ~~a 2 percent favorable impact resulting from fluctuations in~~an unfavorable foreign currency exchange ~~rates, partially offset by higher other operating charges.~~rate impact of 1 percent.

Based on current spot rates and our hedging coverage in place, we expect ~~currencies~~foreign currency exchange rate fluctuations will have ~~a favorable~~an unfavorable impact on our full year 2023 operating ~~income in the fourth quarter of 2017.~~income.

Interest Income

During the three months ended ~~September 29, 2017,~~March 31, 2023, interest income was ~~$175~~$168 million, compared to ~~$164~~$78 million during the three months ended ~~September 30, 2016,~~April 1, 2022, an increase of ~~$11~~$90 million, or 6114 percent. ~~During the nine months ended September 29, 2017, interest income~~The increase was ~~$495 million, compared to $472 million during the nine months ended September 30, 2016, an increase of $23 million, or 5 percent. These increases~~ primarily ~~reflect~~driven by higher ~~investment balances~~returns in certain of our international ~~locations, partially offset by lower interest rates earned on certain of those investments.~~

locations.

Interest Expense

During the three months ended ~~September 29, 2017,~~March 31, 2023, interest expense was ~~$208~~$372 million, compared to $182 million during the three months ended ~~September 30, 2016,~~April 1, 2022, an increase of ~~$26~~$190 million, or 15105 percent. ~~During the nine months ended September 29, 2017, interest expense~~The increase was ~~$631 million, compared~~primarily due to $485 million during the nine months ended September 30, 2016, an increase of $146 million, or 30 percent. These increases primarily reflect the impact of short-term U.S. interest rates and longer debt maturities, both of which resulted in higher interest rates on ~~the Company’s debt portfolio. In addition, during the nine months ended September 29, 2017, the Company recorded a net charge of $38 million due~~short-term borrowings and derivative instruments compared to the extinguishment of certain long-term debt. This net charge included the difference between the reacquisition price and the net carrying amount of the debt extinguished. Refer to the heading "Liquidity, Capital Resources and Financial Position — Cash Flows from Financing Activities" below for additional information related to the Company's long-term debt.prior year.

Equity Income (Loss) — Net

~~Three Months Ended September 29, 2017 versus Three Months Ended September 30, 2016~~

During the three months ended ~~September 29, 2017,~~March 31, 2023, equity income was ~~$358~~$275 million,, compared to equity income of ~~$281~~$262 million during the three months ended ~~September 30, 2016,~~April 1, 2022, an increase of ~~$77~~$13 million, or 285 percent. ~~This~~The increase reflects, among other items, the impact of more favorable operating results reported by ~~several~~some of our equity method investees ~~as well as~~in the current year, partially offset by an ~~equity investment that the Company recently acquired~~$87 million increase in AC Bebidas, S. de R.L. de C.V. ("AC Bebidas"), a subsidiary of Arca Continental, S.A.B. de C.V. ("Arca"). Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on the Company's investment in AC Bebidas.

~~The Company recorded~~ net charges ~~of $16 million and $14 million in~~resulting from the ~~line item equity income (loss) — net during the three months ended September 29, 2017 and September 30, 2016, respectively. These amounts represent the Company's~~Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.

~~Nine Months Ended September 29, 2017 versus Nine Months Ended September 30, 2016~~

During the nine months ended September 29, 2017, equity income was $883 million, compared to equity income of $678 million during the nine months ended September 30, 2016, an increase of $205 million, or 30 percent. This increase reflects, among other items, more favorable operating results reported by several of our equity method investees as well as equity investments that the Company recently acquired in CCEP, CCBA and CCBA's South African subsidiary, and AC Bebidas. The favorable impact of these items was partially offset by the derecognition of the Company's former equity method investment in South Africa. Refer to the heading "Structural Changes, Acquired Brands and Newly Licensed Brands" above for additional information on the deconsolidation of both our German and South African bottling operations. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on the Company's investment in AC Bebidas.

The Company recorded net charges of $37 million and $35 million in the line item equity income (loss) — net during the nine months ended September 29, 2017 and September 30, 2016, respectively. These amounts represent the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.

Other Income (Loss) — Net

~~Other~~During the three months ended March 31, 2023, other income (loss) — net ~~includes, among other things, the impact~~was income of ~~foreign currency exchange gains and losses; dividend income; rental income; gains and losses~~$615 million. The Company recognized a gain of $439 million related to the ~~disposal~~refranchising of ~~property, plant and equipment; gains and losses~~our bottling operations in Vietnam. The Company recognized a net gain of $113 million related to ~~business combinations and disposals;~~ realized and unrealized gains and losses on equity securities and trading ~~securities;~~debt securities as well as realized gains and losses on available-for-sale ~~securities;~~debt securities, and ~~other-than-temporary impairments of available-for-sale securities. The~~recognized net foreign currency exchange ~~gains~~losses of $24 million. Additionally, other income (loss) — net included income of $13 million related to the non-service cost components of net periodic benefit cost and ~~losses are primarily the result~~dividend income of the remeasurement of monetary assets and liabilities from certain currencies into functional currencies. The effects of the remeasurement of these assets and liabilities are partially offset by the impact of our economic hedging program for certain exposures on our condensed consolidated balance sheets. Refer to Note 5 of Notes to Condensed Consolidated Financial Statements.

~~Three Months Ended September 29, 2017 versus Three Months Ended September 30, 2016~~$66 million.

During the three months ended ~~September 29, 2017,~~April 1, 2022, other income (loss) — net was a loss of ~~$771~~$105 million. The Company ~~recorded charges~~recognized a net loss of $762 million due to the refranchising of certain bottling territories in North America and charges of $72 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of comprehensive beverage agreement ("CBA") with additional requirements. The Company also recorded an other-than-temporary impairment charge of $50$104 million related to ~~one of our international~~realized and unrealized gains and losses on equity method investees, primarily driven by foreign currency exchange rate fluctuations. These charges were partially offset by a gain of $79 million related to the refranchising of our remaining China bottling operations and related cost method investment. Other income (loss) — net also included net gains of $14 million related to trading securities and ~~the sale of~~trading debt securities as well as realized gains and losses on available-for-sale debt securities, ~~and~~

~~$10 million of dividend income, partially offset by~~ net foreign currency exchange losses of ~~$5 million. None~~$73 million and a net loss of ~~the other items included in~~$24 million as a result of one of our equity method investees issuing additional shares of its stock. Additionally, other income (loss) — net ~~during~~included income of $70 million related to the ~~three months ended September 29, 2017, was individually significant.~~ non-service cost components of net periodic benefit income and dividend income of $12 million.

Refer to Note 2 of Notes to ~~Condensed~~ Consolidated Financial Statements for additional information on the refranchising of our ~~China~~ bottling operations ~~North America refranchising and the conversion payments.~~in Vietnam. Refer to Note 154 of Notes to ~~Condensed Consolidated Financial Statements for the impact these items had on our operating segments.~~

During the three months ended September 30, 2016, other income (loss) — net was a loss of $1,106 million. This loss included losses of $1,089 million due to the refranchising of certain bottling territories in North America and a loss of $21 million due to the deconsolidation of our South African bottling operations and disposal of the related equity method investment in exchange for investments in CCBA and CCBA's South African subsidiary. Additionally, the Company incurred net foreign currency exchange losses of $25 million and charges of $17 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Other income (loss) — net also included net gains of $24 million related to trading securities and available-for-sale securities. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on ~~the North America refranchising, the deconsolidation of our South African bottling operations~~equity and ~~the conversion payments.~~debt securities. Refer to Note 1514 of Notes to ~~Condensed Consolidated Financial Statements for the impact these items had on our operating segments.~~

~~Nine Months Ended September 29, 2017 versus Nine Months Ended September 30, 2016~~

During the nine months ended September 29, 2017, other income (loss) — net was a loss of $1,122 million. The Company recognized a net charge of $1,473 million due to the refranchising of certain bottling territories in North America and charges of $287 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. The Company also recorded an other-than-temporary impairment charge of $50 million related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. Additionally, the Company incurred a charge of $26 million related to our former German bottling operations. These charges were partially offset by a gain of $445 million related to the integration of Coca-Cola West Co., Ltd. ("CCW") and Coca-Cola East Japan Co., Ltd. ("CCEJ") to establish Coca-Cola Bottlers Japan Inc. ("CCBJI"). In exchange for our previously existing equity interests in CCW and CCEJ, we received an approximate 17 percent equity interest in CCBJI. The Company also recognized a gain of $88 million related to the refranchising of our China bottling operations and related cost method investment and a gain of $25 million as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Other income (loss) — net also included net gains of $69 million related to trading securities and the sale of available-for-sale securities and $62 million of dividend income, partially offset by net foreign currency exchange losses of $16 million. None of the other items included in other income (loss) — net during the nine months ended September 29, 2017, was individually significant. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on ~~the North America refranchising, the conversion payments and the refranchising of our China bottling operations.~~net periodic benefit cost or income. Refer to Note 1516 of Notes to ~~Condensed Consolidated Financial Statements for the impact these items had on our operating segments.~~

During the nine months ended September 30, 2016, other income (loss) — net was a loss of $315 million. This loss included losses of $1,657 million due to the refranchising of certain bottling territories in North America and a loss of $21 million due to the deconsolidation of our South African bottling operations and disposal of the related equity method investment in exchange for investments in CCBA and CCBA's South African subsidiary. Additionally, the Company incurred net foreign currency exchange losses of $106 million and charges of $17 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. These losses were partially offset by a gain of $1,323 million due to the deconsolidation of our German bottling operations, dividend income of $45 million, net gains of $69 million related to trading securities and available-for-sale securities and a gain of $18 million resulting from the Company's disposal of its investment in Keurig Green Mountain, Inc. ("Keurig"). Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information on ~~the North America refranchising, the deconsolidation~~one of our ~~South African bottling operations, the conversion payments, the deconsolidation~~equity method investees issuing additional shares of ~~our German bottling operations and the Keurig investment disposal.~~its stock. Refer to Note 1517 of Notes to ~~Condensed~~ Consolidated Financial Statements for the impact that certain of these items had on our operating ~~segments.~~segments and Corporate.

Income Taxes

~~Our~~The Company recorded income taxes of $940 million (23.2 percent effective tax rate) and $665 million (19.2 percent effective tax rate) during the three months ended March 31, 2023 and April 1, 2022, respectively.

The Company’s effective tax rates for the three months ended March 31, 2023 and April 1, 2022 vary from the statutory U.S. federal tax rate ~~reflects~~of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12 of Notes to Consolidated Financial Statements, along with the tax benefits of having significant ~~operations~~earnings generated outside of the United States ~~which are generally taxed at rates lower than the U.S. statutory rate of 35.0 percent. As a result of employment actions~~ and capital investments made by the Company, certain tax jurisdictions provide income tax incentive grants, including Brazil, Costa Rica, Singapore and Swaziland. The terms of these grants expire from 2017 to 2036. We anticipate that we will be able to extend or renew the grants in these locations. In addition, our effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method, both of ~~accounting,~~ which are generally taxed at rates lower than the statutory U.S. ~~statutory~~federal tax rate.

On November 18, 2020, the U.S. Tax Court (“Tax Court”) issued an opinion (“Opinion”) regarding the Company’s 2015 litigation with the U.S. Internal Revenue Service (“IRS”) involving transfer pricing tax adjustments in which the Tax Court

predominantly sided with the IRS. The Company strongly disagrees with the Opinion and intends to vigorously defend its position. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation.

At the end of each ~~interim period,~~quarter, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year. This estimate reflects, among other items, our best estimate of operating results and foreign currency exchange rates. Based on ~~current~~enacted tax laws, as well as our current interpretation of recently issued regulations, the ~~Company's estimated~~Company’s effective tax rate ~~for 2017~~in 2023 is ~~24.0 percent. However, in arriving at this estimate we do not include~~expected to be 20.2 percent before considering the ~~estimated~~potential impact of any significant operating and nonoperating items ~~which~~that may ~~cause significant variations in the customary relationship between income tax expense and income before income taxes.~~

On September 17, 2015, the Company received a Statutory Notice of Deficiency from the Internal Revenue Service ("IRS") for the tax years 2007 through 2009, after a five-year audit. Refer to Note 7 of Notes to Condensed Consolidated Financial Statements.

~~The Company recorded income tax expense of $230 million (13.7 percent~~affect our effective tax ~~rate) and $378 million (26.5 percent~~rate. However, we currently anticipate the enactment of pending tax legislation outside of the United States during the second quarter of 2023, which, if enacted, is expected to reduce our full year 2023 effective tax ~~rate) during~~rate to approximately 19.5 percent before considering the ~~three months ended September 29, 2017 and September 30, 2016, respectively. The Company recorded income tax expense~~potential impact of ~~$1,805 million (31.1 percent effective tax rate) and $1,618 million (21.2 percent effective tax rate) during the nine months ended September 29, 2017 and September 30, 2016, respectively.~~

~~The following table illustrates the income tax expense (benefit) associated with~~any significant operating and nonoperating items ~~for~~that may affect our effective tax rate. These rates do not include the ~~interim periods presented (in millions):~~

Three Months Ended Nine Months Ended
September 29,
2017
September 30,
2016
September 29,
2017
September 30,
2016

Asset impairments $ —
¹
$ —

$ (164 )
¹
$ —

Productivity and reinvestment program (44 )
²
(20 )
⁹
(127 )
²
(65 )
⁹
Other productivity, integration and restructuring initiatives —

—

—

—
¹⁰
Transaction gains and losses (361 )
³
(246 )
¹¹
172
⁴
(363 )
¹²
Certain tax matters (40 )
⁵
7
¹³
(110 )
⁶
84
¹³
Other — net (12 )
⁷
8
¹⁴
(41 )
⁸
(38 )
¹⁵


¹	Related to charges of $50 million and $821 million during the three and nine months ended September 29, 2017, respectively, due to the impairment of certain assets. Refer to Note 10 and Note 14 of Notes to Condensed Consolidated Financial Statements.


²	Related to charges of $129 million and $355 million during the three and nine months ended September 29, 2017, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 11 of Notes to Condensed Consolidated Financial Statements.

Related to a net charge of $968 million which primarily consisted of $762 million of charges as a result of the refranchising of certain bottling territories in North America, $213 million related to costs incurred to refranchise certain of our bottling operations and $72 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. These charges were partially offset by a $79 million gain related to the refranchising of our remaining China bottling operations and related cost method investment. Refer to Note 2 and Note 10 of Notes to Condensed Consolidated Financial Statements.

⁴

Related to a net charge of $1,551 million which primarily consisted of $1,473 million of net charges as a result of the refranchising of certain bottling territories in North America, $314 million of charges related to costs incurred to refranchise certain of our bottling operations, $287 million of charges primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements and a $26 million charge related to our former German bottling operations. These charges were partially offset by a $445 million gain related to the merger of CCW and CCEJ, an $88 million gain related to the refranchising of our China bottling operations and related cost method investment and a $25 million gain related to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock. Refer to Note 2 and Note 10 of Notes to Condensed Consolidated Financial Statements.


⁵	~~Related to $40 millionof excess tax benefits associated with the Company's share-based compensation arrangements.~~

⁶~~Related to $122 million~~impact of ~~excess~~the ongoing tax ~~benefits associated~~litigation with the ~~Company's share-based compensation arrangements and~~IRS, if the ~~tax benefit associated with the reversal of valuation allowances in certain of the Company's foreign jurisdictions, both of which~~Company were ~~partially offset by changes~~not to ~~our uncertain tax positions, including interest and penalties.~~prevail.

⁷ Related to charges of $35 million which primarily consisted of an $18 million charge related to tax litigation expense and a $16 million net charge due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10 of Notes to Condensed Consolidated Financial Statements.

⁸ Related to charges of $121 million which primarily consisted of a net charge of $38 million related to the extinguishment of long-term debt, a $43 million charge related to tax litigation expense and a net charge of $37 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10 of Notes to Condensed Consolidated Financial Statements.

⁹ Related to charges of $59 million and $187 million during the three and nine months ended September 30, 2016, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11 of Notes to Condensed Consolidated Financial Statements.

¹⁰ Related to charges of $240 million during the nine months ended September 30, 2016. These charges were due to the integration of our German bottling operations. Refer to Note 10 and Note 11 of Notes to Condensed Consolidated Financial Statements.

¹¹ Related to charges of $1,204 million which primarily consisted of $1,089 million of charges due to the refranchising of bottling territories in North America, $73 million related to costs incurred to refranchise our North America bottling territories, charges of $17 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements, a loss of $21 million related to the deconsolidation of our South African bottling operations and the $80 million tax impact resulting from the accrual of tax on temporary differences related to the investment in foreign subsidiaries that are now expected to reverse in the foreseeable future. Refer to Note 2 and Note 10 of Notes to Condensed Consolidated Financial Statements.

¹²Related to a net charge of $561 million which primarily consisted of $1,657 million of charges due to the refranchising of bottling territories in North America, $170 million related to costs incurred to refranchise our North America bottling territories, charges of $17 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements, a loss of $21 million related to the deconsolidation of our South African bottling operations and the $80 million tax impact resulting from the accrual of tax on temporary differences related to the investment in foreign subsidiaries that are now expected to reverse in the foreseeable future. These charges were partially offset by a $1,288 million net gain related to the deconsolidation of our German bottling operations and an $18 million net gain related to the disposal of our investment in Keurig. Refer to Note 2 and Note 10 of Notes to Condensed Consolidated Financial Statements.

¹³~~Primarily related to changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant.~~

¹⁴Related to charges of $99 million which included a $76 million write-down we recorded related to receivables from our bottling partner in Venezuela, a $14 million charge due to our proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees and a $9 million charge due to tax litigation expense. Refer to Note 10 of Notes to Condensed Consolidated Financial Statements.

¹⁵Related to charges of $230 million which included a $100 million cash contribution to The Coca-Cola Foundation, a $76 million charge due to the write-down we recorded related to receivables from our bottling partner in Venezuela, a $35 million net charge due to our proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees and a $19 million charge due to tax litigation expense. Refer to Note 10 of Notes to Condensed Consolidated Financial Statements.

LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL POSITION

We believe our ability to generate cash flows from operating activities is one of the fundamental strengths of our ~~fundamental financial strengths.~~business. Refer to the heading ~~"Cash~~“Cash Flows from Operating ~~Activities"~~Activities” below. The near-term outlook for our business remains strong, and we expect to generate substantial cash flows from operations in 2017. As a result of our expected cash flows from operations, we have significant flexibility to meet our financial commitments. The Company does not typically raise capital through the issuance of stock. Instead, we use debt financing to lower our overall cost of capital and increase our return on ~~shareowners'~~shareowners’ equity. Refer to the heading ~~"Cash~~“Cash Flows from Financing ~~Activities"~~Activities” below. We have a history of borrowing funds both domestically and ~~continue~~internationally at reasonable interest rates, and we expect to ~~have the ability~~be able to continue to borrow funds ~~domestically~~ at reasonable ~~interest rates. In addition, our domestic entities have recently borrowed and continue to~~rates over the long term. Our debt financing also includes the use of a commercial paper program. We currently have the ability to borrow funds in ~~international markets~~this market at ~~reasonable interest rates. Our~~levels that are consistent with our debt financing ~~includes~~strategy, and we expect to continue to be able to do so in the ~~use of an extensive commercial paper program as part of our overall cash management strategy.~~future. The Company regularly reviews its optimal mix of short-term and long-term ~~debt regularly~~debt.

The Company’s cash, cash equivalents, short-term investments and ~~may replace certain amounts~~marketable securities totaled $14.3 billion as of ~~commercial paper, short-term debt and current maturities of long-term debt with new issuances of long-term debt in the future.~~March 31, 2023. In addition to ~~the Company's cash balances,~~these funds, our commercial paper program, and our ability to issue long-term debt, we ~~also~~ had ~~$8,265 million~~$4.2 billion in unused backup lines of credit ~~available~~ for general corporate purposes as of ~~September 29, 2017.~~March 31, 2023. These backup lines of credit expire at various times ~~between 2017~~through 2028.

Our current payment terms with the majority of our suppliers are 120 days. Two global financial institutions offer a voluntary supply chain finance program which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and ~~2022.~~thus may be more beneficial to them. We do not believe there is a risk that our payment terms will be shortened in the near future. Refer to Note 7 of Notes to Consolidated Financial Statements for additional information.

Our current capital allocation priorities are as follows: investing wisely to support our business operations, continuing to grow our dividend payment, enhancing our beverage portfolio and capabilities through consumer-centric acquisitions, and using excess cash to repurchase shares over time. We currently expect 2023 capital expenditures to be approximately $1.9 billion. During 2023, we also expect to repurchase shares to offset dilution resulting from employee stock-based compensation plans.

We ~~have significant operations outside~~are currently in litigation with the ~~United States. Unit case volume outside~~IRS for tax years 2007 through 2009. On November 18, 2020, the ~~United States represented 82 percent~~Tax Court issued the Opinion in which it predominantly sided with the IRS; however, a decision is still pending and the timing of such decision is not currently known. The Company strongly disagrees with the IRS’ positions and the portions of the ~~Company's worldwide unit case volume~~Opinion affirming such positions and intends to vigorously defend our positions utilizing every available avenue of appeal. While the Company believes that it is more likely than not that we will ultimately prevail in this litigation upon appeal, it is possible that all, or some portion of, the adjustments proposed by the IRS and sustained by the Tax Court could ultimately be upheld. In the event that all of the adjustments proposed by the IRS were to be ultimately upheld for tax years 2007 through 2009 and the IRS, with the consent of the federal courts, were to decide to apply the underlying methodology (“Tax Court Methodology”) to the subsequent years up to and including 2022, the Company currently estimates that the potential aggregate incremental tax and interest liability could be approximately $14 billion as of December 31, 2022. Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. The Company estimates the impact of the continued application of the Tax Court Methodology for the ~~nine~~three months ended ~~September 29, 2017. We earn~~March 31, 2023 would increase the potential aggregate incremental tax and interest liability by approximately $400 million. Once the Tax Court renders a substantial amount of our consolidated operating income and income before income taxes in foreign subsidiaries that either sell concentrates and syrups to our local bottling partners or, in certain instances, sell finished products directly to our customers to fulfill the demand for Company beverage products outside the United States. A significant portion of these foreign earnings is considered to be indefinitely reinvested in foreign jurisdictions wheredecision, the Company ~~has made,~~will have 90 days to file a notice of appeal and ~~will continue to make, substantial investments to support the ongoing development and growth of our international operations. Accordingly, no U.S. federal and state income taxes have been provided on~~pay the portion of ~~our foreign earnings that is considered~~the potential aggregate incremental tax and interest liability related to the 2007 through 2009 tax years, which we currently estimate to be ~~indefinitely reinvested in foreign jurisdictions. The Company's cash, cash equivalents, short-term investments and marketable securities held by our foreign subsidiaries totaled $24.7~~approximately $5.4 billion as(including interest accrued through March 31, 2023), plus any additional interest accrued through the time of ~~September 29, 2017.~~payment. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation.

~~Net operating revenues~~While we believe it is more likely than not that we will prevail in the United States were $11.9 billion for the nine months ended September 29, 2017, or 43 percent of the Company's consolidated net operating revenues. We expect existing domestic cash, cash equivalents, short-term investments, marketable securities,tax litigation discussed above, we are confident that, between our ability to generate cash flows from ~~operations and the issuance of debt to continue to be sufficient to fund our domestic~~ operating activities and ~~cash commitments for investing and financing activities. In addition,~~our ability to borrow funds at reasonable interest rates, we ~~expect existing~~

foreign cash, cash equivalents, short-term investments, marketable securities and cash flows from operations to continue to be sufficient to fund our foreign operating activities and cash commitments for investing activities.

Incan manage the ~~future, should we require more capital to fund significant discretionary activities~~range of possible outcomes in the ~~United States than is generated by our domestic operations and is available through~~final resolution of the issuance of domestic debt, we could elect to repatriate future periods' earnings from foreign jurisdictions. This alternative could result in a higher effective tax rate in the future. While the likelihood is remote, the Company could also elect to repatriate earnings from foreign jurisdictions that have previously been considered to be indefinitely reinvested. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to additional U.S. income taxes (net of an adjustment for foreign tax credits) and withholding taxes payable to various foreign jurisdictions, where applicable. This alternative could also result in a higher effective tax rate in the period in which such a determination is made to repatriate prior period foreign earnings.matter.

Based on all of the aforementioned factors, the Company believes its current liquidity position is strong and we will continue to ~~meet all of~~be sufficient to fund our ~~financial~~operating activities and cash commitments for investing and financing activities for the foreseeable future.

Cash Flows from Operating Activities

The Company has a trade accounts receivable factoring program in certain countries. Under this program, we can elect to sell trade accounts receivables to unaffiliated financial institutions at a discount. In these factoring arrangements, for ease of administration, the Company collects customer payments related to the factored receivables and remits those payments to the financial institutions. The Company sold $2,709 million and $1,597 million of trade accounts receivables under this program during the three months ended March 31, 2023 and April 1, 2022, respectively. The costs of factoring such receivables were $11 million and $1 million for the three months ended March 31, 2023 and April 1, 2022, respectively. The cash received from the financial institutions is reflected within the operating activities section of our consolidated statement of cash flows.

Net cash provided by operating activities ~~for~~during the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and ~~September 30, 2016,~~April 1, 2022 was ~~$5,918~~$160 million and ~~$6,723~~$623 million, respectively, a decrease of ~~$805~~$463 million, or 1274 percent. This decrease was primarily driven by ~~unfavorable impacts~~the timing of working capital initiatives, payments resulting from ~~changes in working capital~~the buildup of ~~$487 million, two fewer days~~inventory in the ~~first quarter of 2017 compared~~prior year to ~~the first quarter of 2016, the refranchising of certain bottling operations and~~manage potential supply chain disruptions, an unfavorable impact due to foreign currency exchange rate ~~fluctuations. Included in~~fluctuations, and $167 million of the ~~changes in working capital is an unfavorable impact resulting from additional income tax payments which was~~$275 million milestone payment for fairlife. These items were partially offset by ~~favorable impacts~~lower marketing payments resulting from ~~hedging activities and reduced pension contributions compared~~year-end accruals. Refer to Note 16 of Notes to Consolidated Financial Statements for additional information on the ~~prior year comparable period.~~milestone payment for fairlife.

Cash Flows from Investing Activities

Net cash provided by investing activities ~~for~~during the ~~nine~~three months ended ~~September 29, 2017~~March 31, 2023 and April 1, 2022 was ~~$244~~$117 million ~~compared to net cash used in investing activities of $1,333~~and $146 million, ~~during the prior year comparable period.~~respectively.

Purchases of Investments and Proceeds from Disposals of Investments

During the ~~nine~~three months ended ~~September 29, 2017,~~March 31, 2023, purchases of investments were ~~$12,925~~$739 million and proceeds from disposals of investments were ~~$12,161~~$815 million, resulting in a net cash ~~outflow~~inflow of ~~$764~~$76 million. ~~The~~During the three months ended April 1, 2022, purchases of investments were $835 million and proceeds from disposals of investments were $1,323 million, resulting in a net cash inflow of $488 million. This activity primarily represents the purchases of, and proceeds from the disposals of, investments in marketable securities and short-term investments that were made as part of the ~~Company's~~Company’s overall cash management strategy. ~~Refer to Note 3 of Notes to Condensed Consolidated Financial Statements for additional information.~~

~~During the nine months ended September 30, 2016, purchases of investments were $12,733 million and proceeds from disposals of investments were $13,210 million, resulting~~Also included in ~~a net cash inflow of $477 million. The proceeds during the nine months ended September 30, 2016 included the disposal of the Company's investment in Keurig. The remaining~~this activity ~~primarily represents the~~are purchases of, and proceeds from ~~short-term~~the disposals of, investments ~~that were made as part of the Company's overall cash management strategy.~~held by our captive insurance companies. Refer to Note 24 of Notes to ~~Condensed~~ Consolidated Financial Statements for additional information on our ~~investment in Keurig.~~

~~Acquisitions of Businesses, Equity Method Investments and Nonmarketable Securities~~

During the nine months ended September 29, 2017, the Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $538 million, which primarily related to the acquisition of AdeS, a plant-based beverage business, by the Company and several of its bottling partners in Latin America. Additionally, in conjunction with the refranchising of CCR's Southwest operating unit ("Southwest Transaction"), we obtained an equity interest in AC Bebidas. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information.

On October 4, 2017, the Company and AB InBev completed the transition of AB InBev’s 54.5 percent majority interest in CCBA to the Company for $3.15 billion. Refer to Note 16 of Notes to Condensed Consolidated Financial Statements for additional information.

During the nine months ended September 30, 2016, the Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $767 million, which primarily related to our acquisition of Xiamen Culiangwang Beverage Technology Co., Ltd. ("China Green"), a maker of plant-based protein beverages in China, and a minority investment in CHI Limited ("CHI"), a Nigerian producer of value-added dairy and juice beverages, which is accounted for under the equity method of accounting. Under the terms of the agreement related to our investment in CHI, the Company is obligated to acquire the remaining ownership interest from the existing shareowners in 2019 based on an agreed-upon formula. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information.

investments.

Proceeds from Disposals of Businesses, Equity Method Investments and Nonmarketable Securities

During the ~~nine~~three months ended ~~September 29, 2017,~~March 31, 2023 and April 1, 2022, proceeds from disposals of businesses, equity method investments and nonmarketable securities were ~~$2,790~~$319 million and $218 million, respectively, which primarily related to ~~proceeds from~~ the ~~refranchising of certain bottling territories in North America and the refranchising~~sales of our ~~China bottling operations and related cost method investment. During the nine months ended September 30, 2016, proceeds from disposals of businesses,~~ownership interests in certain equity method investments and nonmarketable securities were $745 million, primarily related to proceeds from the refranchising of certain bottling territories in North America. Refer to Note 2 of Notes to Condensed Consolidated Financial Statements for additional information.investees.

Purchases of Property, Plant and Equipment

Purchases of property, plant and equipment ~~net of disposals for~~during the ~~nine~~three months ended ~~September 29, 2017,~~March 31, 2023 and April 1, 2022 were ~~$1,122 million. The Company currently expects~~$276 million and $217 million, respectively.

Collateral (Paid) Received Associated with Hedging Activities — Net

Collateral received associated with our ~~2017 full year capital expenditures net of disposals to be approximately $2.0 billion, primarily in our Bottling Investments operating segment.~~

~~During~~hedging activities during the ~~nine~~three months ended ~~September 30, 2016, cash outflows~~March 31, 2023 was $18 million, and collateral paid associated with our hedging activities during the three months ended April 1, 2022 was $341 million. Refer to Note 6 of Notes to Consolidated Financial Statements for ~~investing activities included purchases of property, plant and equipment net of disposals of $1,469 million.~~additional information on our hedging activities.

Cash Flows from Financing Activities

~~Our~~Net cash provided by financing activities ~~include~~during the three months ended March 31, 2023 was $2,065 million, and net ~~borrowings, issuances of stock, share repurchases and dividends. Net~~ cash used in financing activities during the ~~nine~~three months ended ~~September 29, 2017 and September 30, 2016 totaled $2,499 million and $1,783 million, respectively, an increase of $716 million, or 40 percent.~~April 1, 2022 was $2,975 million.

Debt Financing

Issuances and payments of debt included both short-term and long-term financing activities. During the ~~nine~~three months ended ~~September 29, 2017,~~March 31, 2023, the Company had issuances of debt of ~~$24,899~~$4,074 million, which included ~~$21,266~~$2,725 million of net issuances related to commercial paper and short-term debt with maturities greater than 90 days, and issuances of long-term debt of $3,633 million, net of related discounts and issuance costs. The Company made payments of debt of $22,424 million during the nine months ended September 29, 2017, which included $1,029 million of payments of commercial paper and short-term debt with maturities of 90 days or less, ~~$18,607~~$1,346 million of issuances of commercial paper and short-term debt with maturities greater than 90 days, and long-term debt issuances of $3 million, net of related discounts and issuance costs.

The Company made payments of debt of $1,174 million during the three months ended March 31, 2023, which included payments of $1,011 million related to commercial paper and short-term debt with maturities greater than 90 days and payments of long-term debt of ~~$2,788~~$163 million. ~~Refer below for additional details on our~~

During the three months ended April 1, 2022, the Company had issuances of debt of $1,052 million, which included $1,026 million of net issuances of commercial paper and short-term debt with maturities of 90 days or less, $5 million of issuances of commercial paper and short-term debt with maturities greater than 90 days, and long-term debt issuances of $21 million, net of related discounts and ~~payments.~~issuance costs.

~~During~~The Company made payments of debt of $1,045 million during the ~~nine~~three months ended ~~September 29, 2017, the Company issued U.S. dollar-~~April 1, 2022, which included payments of $750 million related to commercial paper and ~~euro-denominated~~short-term debt with maturities greater than 90 days and payments of long-term debt of ~~$1,000 million and €2,500 million, respectively. The general terms of the notes issued are as follows:~~

~~$500 million total principal amount of notes due May 25, 2022, at a fixed interest rate of 2.20 percent;~~

~~$500 million total principal amount of notes due May 25, 2027, at a fixed interest rate of 2.90 percent;~~

~~€1,500 million total principal amount of notes due March 8, 2019, at a variable interest rate equal to the three-month Euro Interbank Offered Rate ("EURIBOR") plus 0.25 percent;~~

~~€500 million total principal amount of notes due March 9, 2021, at a fixed interest rate of 0.00 percent; and~~

~~€500 million total principal amount of notes due March 8, 2024, at a fixed interest rate of 0.50 percent.~~

During the nine months ended September 29, 2017, the Company retired upon maturity $206 million total principal amount of notes due August 1, 2017, at a fixed interest rate of 7.125 percent and €2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three-month EURIBOR plus 0.15 percent. The Company also extinguished a portion of the long-term debt that was assumed in connection with our acquisition of Old CCE. The extinguished notes had a carrying value of $417 million, which included fair value adjustments recorded as part of purchase accounting. The general terms of the notes extinguished were as follo~~ws:~~

~~$95.6 million~~ ~~total principal amount of notes due August 15, 2019, at a fixed interest rate of 4.50 percent;~~

~~$38.6 million total principal amount of notes due February 1, 2022, at a fixed interest rate of 8.50 percent;~~